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EXECUTIVE SUMMARY

Nestle has been serving this world for over one hundred and thirty years. It has differentiated itself through its high quality product mix and positioned itself as health and Nutrition Company while targeting the health conscious people throughout the world. Nestle started its operations in Pakistan back in 1988, by acquiring a diary company MILKPAK LTD, when people of Pakistan actually needed it.

Since Pakistan is the fifth world’s largest milk producing country therefore nestle deals mainly in dairy products. Moreover it also sells juices, chocolates, prepared food like noodles, baby food, infant formula milk and breakfast cereals in Pakistan.

Nestle is a low cost leader with its efficient operations hence it provides its customers with high quality products and sells them at a premium price. Therefore it is earning good profits.

Nestle has set its manufacturing plants at in Karachi, Lahore, Islamabad and Kabirwala. The milk processing plant at Kabirwala district is the Nestlé’s world largest milk processing plant.

When nestle introduced its products in Pakistan people were neither aware nor accustomed to them. Therefore nestle ran an extensive marketing campaign to educate people and create a need for its products.

Pakistan is a land where fresh eatables are readily available. Nestle should sell the same quality of products in Pakistan as it sells abroad. It should also introduce more brands in Pakistani market which it offers in other markets of the world since consumers in Pakistan are becoming more demanding day by day.

INTRODUCTION

Nestlé at a Glance

The story begins in 1867, when Henri Nestlé developed a baby formula that saved a child's life and marked the beginning of Nestlé's decades-old commitment to nutrition. In the 140 years since then, they have expanded around the world and developed a range of products designed to suit every taste, need and cultural preference. Their distinctive seal is recognized everywhere as a guarantee of quality and healthfulness.

Nutrition, quality and convenience remain the keystones of their products and even as they confront the new century's challenges, they feel it is their duty to adapt to the changing needs of consumers. Their responsibility does not simply lie in perfecting the products they develop at their R&D centers spanning four continents, but the role their products play in making lives well - both for their consumers and for communities in the countries they serve.

Worldwide Presence

Today, Nestlé SA is the world's largest Food and Beverages Company, and a global leader in health, nutrition and wellness. Consumers around the world, from village squares in Nigeria to the skyscrapers of New York and Chicago, are united by the Nestlé promise of quality, taste, nutrition and convenience.

Though headquartered in Vevey, Switzerland, they now have 487 factories dotted around the globe, employing over 250,000 people in 86 countries. Their products are available in almost every country.

Nestlé International History

History of Nestlé

1866-1905

the key factor which drove the early history of the enterprise that would become The Nestlé Company was Henri Nestlé's search for a healthy, economical alternative to breastfeeding for mothers who could not feed their infants at the breast. Nestlé’s first product was called Farine Lactée (“corn flour gruel” in French) Henri Nestlé. Nestlé's first customer was a premature infant who could tolerate neither his mother's milk nor any of the conventional substitutes, and had been given up for lost by local physicians.

People quickly recognized the value of the new product, after Nestlé's new formula saved the child's life and within a few years, Farine Lactée Nestlé was being marketed in much of Europe.

The Anglo-Swiss Condensed Milk Company, founded in 1866 by Americans Charles and George Page, broadened its product line in the mid-1870s to include cheese and infant formulas. The Nestlé Company, which had been purchased from Henri Nestlé by Jules Monnerat in 1874, responded by launching a condensed milk product of its own. The two companies remained fierce competitors until their merger in 1905.

Some other important firsts occurred during those years. In 1875 Vevey resident Daniel Peter figured out how to combine milk and cocoa powder to create milk chocolate. Peter, a friend and neighbor of Henri Nestlé, started a company that quickly became the world's leading maker of chocolate and later merged with

Nestlé. In 1882 Swiss miller Julius Maggi created a food product utilizing legumes that was quick to prepare and easy to digest.

His instant pea and bean soups helped launch Maggi & Company..

1905-1918

The Company formed by the 1905 merger was called the Nestlé and Anglo- Swiss Milk Company. By the early 1900s, the Company was operating factories in the United States, Britain, Germany and Spain. In 1904, Nestlé added chocolate to its range of food products after reaching an agreement with the Swiss General Chocolate Company.

Condensed-milk exports increased rapidly as the Company replaced sales agents with local subsidiary companies. In 1907, the Company began full-scale manufacturing in Australia, its second-largest export market. Warehouses were built in Singapore, Hong Kong, and Bombay to supply the rapidly growing Asian markets.

Most production facilities remained in Europe, however, and the onset of World War I brought severe disruptions. Acquiring raw materials and distributing products became increasingly difficult. Fresh-milk shortages throughout Europe forced factories to sell almost all their supplies to meet the needs of local towns. Nevertheless, the war created tremendous new demand for dairy products, largely in the form of government contracts. To keep up, Nestlé purchased several existing factories in the United States. By war's end, the Company had 40 factories, and its world production had more than doubled since 1914.

1918-1938

The end of World War I brought with it a crisis for Nestlé. Government contracts dried up following the cessation of hostilities, and civilian consumers who had grown accustomed to condensed and powdered milk during the war switched back to fresh milk when

it became available again. In 1921, the Company recorded its first loss. Nestlé's management responded quickly, bringing in Swiss banking expert Louis Dapples to reorganize the Company.

1938-1944

The

effects of the

onset of World War

II

were felt immediately by

Nestlé. Profits dropped from $20 million in 1938 to $6 million in 1939.

Neutral Switzerland became increasingly isolated in a Europe at war, and the Company transferred many of its executives to offices in Stamford,

The first truly global conflict ended forever the traditional Company structure. To overcome distribution problems in Europe and Asia, factories were established in developing countries, particularly in Latin America.

Ironically, World War II helped speed the introduction of the Company's newest product, Nescafé. After the United States entered the war, Nescafé became a staple beverage of American servicemen serving in Europe and Asia. Annual production levels reached one million cases by 1943.

As in World War I, production and sales rose in the wartime economy: Nestlé's total sales jumped from $100 million in 1938 to $225 million in 1945. As the end of the war approached, Nestlé executives found themselves unexpectedly heading up a worldwide coffee concern, as well a company built upon Nestlé's more traditional businesses.

1944-1975

The close of World War II marked the beginning of the most dynamic phase of Nestlé's history. Throughout this period, Nestlé's growth was based on its policy of diversifying within the food sector to meet the needs of consumers. Dozens of new products were added as growth within the Company accelerated and outside companies were acquired.

In 1947, Nestlé merged with Alimentana S.A., the manufacturer of Maggi seasonings and soups, becoming Nestlé Alimentana Company. The acquisition of Crosse & Blackwell, the British manufacturer of preserves and canned foods, followed in 1960, as did the purchase of Findus frozen foods (1963), Libby's fruit juices (1971) and Stouffer's frozen foods (1973).

Meanwhile, Nescafé continued its astonishing rise. From 1950 to 1959, sales of instant coffee nearly tripled, and from 1960 to 1974, they quadrupled..

1975-1981

After the agreement with L'Oréal in 1974, Nestlé's overall position changed rapidly. For the first time since the 1920s, the Company's economic situation deteriorated as the price of oil rose and growth in the industrialized countries slowed. In addition, foreign exchange rates deteriorated with the French franc, dollar, pound sterling, and mark all losing value relative to the Swiss franc. Finally, between 1975 and 1977, the price of coffee beans quadrupled, and the price of cocoa tripled. As in 1921, the Company was forced to respond quickly to a radically changed marketplace.

Nestlé's rapid growth in the developing world partially offset a slowdown in the Company's traditional markets, but it also carried with it the risks associated with unstable political and economic conditions. To maintain a balance, Nestlé made its second venture outside the food industry by acquiring Alcon Laboratories, Inc., a U.S. manufacturer of pharmaceutical and ophthalmic products.

Taking such a step in a time of increased competition and shrinking profit margins required boldness and vision. Even more than the L'Oréal move, Alcon represented a leap into unknown waters for Nestlé. But, as Group Chairman Pierre Liotard-Vogt noted, "Today we find ourselves with a very wide range of activities, all of which have one thing in common: they all contribute to satisfying the requirements of the human body in various ways."

1981-1995

Under a new Chief Executive Officer, Helmut Maucher, Nestlé approached the 1980s with a renewed flexibility and determination to evolve. The Company's strategy for this period was twofold: improve its financial situation through internal adjustments and divestments, and continue its policy of strategic acquisitions.

Thus, between 1980 and 1984, the Company divested a number of non-strategic or unprofitable businesses. At the same time, Nestlé managed to put an end to a serious controversy over its marketing of infant formula in the Third World. This debate had led to a boycott of Nestlé products by certain lay and religious organizations. This issue is still alive in some quarters, but there is no longer any significant boycott activity.

In 1984, Nestlé's improved bottom line allowed the Company to launch a new round of acquisitions, including a public offer of $3 billion for the American food

1996-2002

The first half of the 1990s proved to be a favorable time for Nestlé: trade barriers crumbled and world economic markets developed into a series of more or less integrated trading areas. The opening of Central and Eastern Europe, as well as China, and a general trend towards liberalization of direct foreign investment was good news for a company with interests as far-flung and diverse as Nestlé. While progress since then has not been as encouraging, the overall trends remain positive.

In July 2000, Nestlé launched a Group-wide initiative called GLOBE (Global Business Excellence), aimed at harmonizing and simplifying business process architecture; enabling Nestlé to realize the advantages of a global leader while minimizing the drawbacks of size.

There were two major acquisitions in North America in 2002: in July, Nestlé announced that the U.S. ice cream business was to be merged into Dreyer's, and in August, a USD 2.6bn acquisition was announced of Chef America, Inc. , a leading U.S.-based hand-held frozen food product business.

Also in 2002, the joint venture Dairy Partners Americas was set up with Fonterra; and Laboratoires innéov was set up, another joint venture, this time with L'Oréal.

2003 +

The year 2003 started well with the acquisition of Mövenpick Ice Cream, enhancing Nestlé's position as one of the world market leaders in this product category. The years that followed saw consistent business growth through innovation and renovation of the products.

In 2006, Jenny Craig, the USA weight management company and Uncle Toby's were acquired as well as Delta Ice Cream.

Nestlé made three significant acquisitions in 2007. The first was Novartis Medical Nutrition which put Nestlé in a a strong number two position globally for healthcare nutrition. Gerber, the iconic US baby food brand was the second

acquisition and the third was the Swiss water company, Sources Minérales Henniez S.A.

The end of 2007 was marked by a strategic partnership with the Brussels-based luxury chocolate maker Pierre Marcolini.

History of the Nestlé Logo

The Nestlé logo was launched by Henri

Nestlé

in

1868

on

the

basis

of the

meaning of his name in German, i.e. little nest, and of his family emblem.

History of the Nestlé Logo The Nestlé logo was launched by Henri Nestlé in 1868 on

Henri obtained a 15-year French patent for his logo in 1868. After he retired, it was registered in Vevey in 1875 by the new owners of his company.

History of the Nestlé Logo The Nestlé logo was launched by Henri Nestlé in 1868 on

In 1938, the traditional nest design was combined with the "Nestlé" name to form what is called the combined mark.

  • In 1966 the design was simplified.

In 1988, the worm in the mother bird's beak was removed and the
fledglings became two instead of three. It is said that it was meant to better illustrate the activities of the company, no longer active only in nutrition, and to reflect the average modern family of two

children.

  • The logo we know now has just been simplified. supposed to represent an oak and the bird’s thrushes.

The tree

is

Guiding Principles of Nestlé

Nestlé is committed to the following Business Principles in all countries, taking into account local legislation, cultural and religious practices:

Nestlé's business objective is to manufacture and market the Company's products in such a way as to create value that can be sustained over the long term for shareholders, employees, consumers, and business partners.

Nestlé does not favor short-term profit at the expense of successful long- term business development.

Nestlé recognizes that its consumers have a sincere and legitimate interest in the behavior, beliefs and actions of the Company behind brands in which they place their trust, and that without its consumers the Company would not exist.

Nestlé believes that, as a general rule, legislation is the most effective safeguard of responsible conduct, although in certain areas, additional guidance to staff in the form of voluntary business principles is beneficial in order to ensure that the highest standards are met throughout the organization.

Nestlé is conscious of the fact that the success of a corporation is a reflection of the professionalism, conduct and the responsible attitude of its management and employees. Therefore recruitment of the right people and ongoing training and development are crucial.

Nestlé continues to maintain its commitment to follow and respect all applicable local laws in each of its markets.

Philosophy of Nestlé

Nestlé‘s philosophy is summed up in four words:

Good Food, Good Life.

In their quest to become the world's leading health, nutrition and wellness company, they do everything they can to help people live more fulfilling lives.

Good Food, Good Life

∑ Nestlé does not favor short-term profit at the expense of successful long- term business development.

Henri Nestlé chose his own coat of arms to represent the company's philosophy:

a bird's nest, with a mother feeding her young.

The image represents Nestlé core values: care, family values, nutrition, healthy growth, safety and comfort. It is a guarantee of quality and a commitment to responsibilities as a food company and experts in nutrition.

Over the years Nestlé has reaffirmed its commitment to wellness, helping consumers to live longer, healthier, and more productive lives, no matter their age, gender or socioeconomic status.

Good Ingredients

Three vital ingredients lie at the heart of Nestlé and come together in their brands: Their people, their research and development, and their commitment to quality.

The 250,000 dedicated people who make up the Nestlé family are their source of strength and energy. Realizing this, Nestlé offer them constant professional development, and feel their cultural diversity is one of greatest assets.

Nestlé Pakistan History

Nestlé Pakistan

Nestlé has been serving Pakistani consumers since 1988, when their parent company, the Switzerland-based Nestlé SA, first acquired a share in Milkpak Ltd.

Today they are fully integrated in Pakistani life, and are recognized as producers of safe, nutritious and tasty food, and leaders in developing and uplifting the communities in which they operate. Nestlé Pakistan ensures that their products are made available to consumers wherever in the country they might be. Convenience is at the heart of the Nestlé philosophy, and their aim is to bring products to people's doorsteps.

A History of Service

In line with the parent company's global philosophy, Nestlé is proud of their commitment to excellence in product safety, quality, and value. Their products cater to human needs, and Nestlé is active in the communities they serve.

From spreading awareness about nutrition and wellness to digging wells in the Thar Desert and succoring earthquake victims, they are committed to serving the country and its people.

The consumer's voice is key to Nestlé Pakistan's vision and working. Whether you live in the remotest village or the metropolis of Karachi, their consumer services team stands ready to listen to your concerns and provide answers about their products and guidance on matters of health and wellness

Vision and Strategy

The Nestlé global vision is to be the leading health, wellness, and Nutrition Company in the world. Nestlé Pakistan subscribes fully to this vision. In particular, they envision to:

Lead a dynamic motivated and professional workforce – proud of its heritage and bullish about the future.

Meet the nutritional needs of consumers of all age groups – from infancy to old age, from nutrition to pleasure, through an innovative portfolio of branded food and beverage products of the highest quality.

Deliver shareholder value through profitable long-term growth, while continuing to play a significant and responsible role in the social, economic and environmental sectors of the country.

Nestlé has profitable and diversified high quality food and beverage product portfolio, delivering 60:40+ advantage to consumers, available across all sales channels.

Nestlé brands are the preferred choice in their categories. Consumer insight drives all aspects of their marketing and communication efforts.

Their communications to the consumer are relevant,

cutting-edge, and

adhere to the highest standards of responsible communication.

Nestlé Company is seen as the No. 1 career destination for talented, motivated and ambitious professionals.

Their

result-oriented

organizational

structure

ensures

effective

communication and empowered self-management.

Nestlé milk collection and agri services will continue to play the primary role in development of the dairy sector in rural Pakistan.

Their proactive innovation and renovation culture is the key to their success in the marketplace.

Fully integrated systems (Nestlé Pakistan, suppliers, customers) ensure efficient business processes.

Non-strategic activities and products are outsourced or discontinued. MARKET CONDITION

Pakistan is a third world country therefore its market is not a stable one. This report was prepared in July 2008 when inflationary conditions in Pakistani market were not that severe, therefore this report should be viewed in context of the market conditions which were prevailing in July 2008.

During the past one decade Pakistani people got rich due to much privatization and foreign investment, coupled with property and stock exchange boom. Now people have money to spend and their affordability has increased dramatically. Therefore nestle also introduced many brands keeping in mind the per capita purchasing power, and set their prices at a premium since people have trust in nestle therefore nestle is earning good profits in Pakistan.

Besides the increase in per capita purchasing power, awareness increased among people of Pakistan regarding to the health issues. People are now health conscious which helped nestle to flourish in Pakistan.

Swot analysis

Strengths

Nestlé is a global leader and has got many strengths and competitive advantages. Pakistan Nestle is the largest consumer industry where its annual sales stand at Rs.22 billion. The Nestle chief executive said the company has given direct jobs to 10,000 people while one million people are employed through business in Pakistan. Nestle has four pillars of strength these are operating excellence, innovation and renovation, product availability, and communication.

Skilled and committed team:

Nestle do cares about its employees that is the reason it has been a successful company to retain brilliant, confident, genius and hardworking employees which is the greatest strength of nestle that is the people who work for it. Management has skills and experience in a variety of areas. Trevor Clayton the managing director of nestle Pakistan emphasizes internal growth, meaning he wants to achieve higher volumes by renovating existing products, and innovating new products. His explanation of renovation is that “to just keep pace in the industry, you need to change at least as fast as consumer expectations.” And his explanation of innovation is “to maintain a leadership position, you also need to leapfrog, to move faster and go beyond what consumers will tell you.”

Nestle tries to take the mentality and customs of individual countries into account, but there are some general guidelines that that are applied everywhere. Those include:

  • 1. A positive attitude toward work

  • 2. A pragmatic, realistic approach to doing business

  • 3. An open-minded approach to the world

  • 4. A minimal number of systems and written guidelines

  • 5. A personal style of management

  • 6. An atmosphere of mutual trust

  • 7. An avoidance of showing off, windy rhetoric and hypocritical remarks

  • 8. emphasis

An

on

practical

experience

and

on

the

setting

of

good

examples.

Efficient operations, low costs and high quality:

Another strength that Nestle has is that they are low cost operators. This allows them to not only beat the competition by producing low cost products, but by also putting comparatively low prices on high quality products. Its ability to negotiate on bulk purchases helps to reduce the capital costs. Having been operating for more than a hundred years nestle has designed the most efficient ways of production.

To reduce the costs nestle has come up with a unique distribution strategy in Asian countries, that is to produce in those countries where the raw material is cheap and abundant and export the finished products to the other Asian countries. For example corn flakes available in Pakistan are imported from Philippines. A huge industrial unit producing magi products has been setup in India and products are exported to the other countries.

R&D:

Nestle has multiple critical resources. They have a great research and development team. Achieving health and wellness through foods is a challenging adventure. It extends the boundaries of consumer expectations and satisfaction beyond the classical sensory experience. Today’s discoveries provide the knowledge for tomorrow’s innovations.

Nestle is probably unique in the food industry in having an integrated research and development program that engages in applied and basic research in the fields of human physiology, health, nutrition and raw materials. Nestle research and development program enables it to create new types of products that we cannot even imagine today, especially in the critical area where preventive medicine and food products overlap. In addition, as concern for the environment grows, research will play an important role in overcoming environmental problems. For Nestlé, this is particularly important in packaging. Concern for the effects of packaging on the environment is forcing us to look for new solutions and to consider their interaction with our biological product -- food.

BRAND RECOGNITION AND FAVOURABLE CONSUMER PERCEPTION:

Nestle brand recognition is one strength that helps it to be a market leader

whenever it enters a new market or when it introduces a new product. One of their main goals has been to deliver brands that consumers trust and value and they have succeeded. Another strength that nestle has is the fact that consumers simply know that nestle products are healthy. People have trust in nestle because nestle always listen to its customers and was the first company to introduce customer service tradition in Pakistan.

LACK OF COMPETITORS:

Nestle is the world largest food company. The products which nestle has introduced in the Pakistani market had already been successfully test marketed in the other parts of the world. Having been operating for more than a century and huge resources this market giant improved the quality of its products and hence gained a kind of reputation that helped to increase its brand equity.

Product availability and strong distribution networks:

From farm to factory:

Nestle setup its milk plants in the southern Punjab where milk is in abundance, instead of going into corporate farming nestle went for contracts with local milkmen for milk supply for its factories, which helped to reduce the costs efficiently and also helped to solve the problems of the local milkmen because nestle pays them well.

From factory to market:

One of the key strengths that nestle has is its thorough and efficient research in different parts of the globe and which helps it to come up with practical and feasible decisions. After a thorough study of Pakistan’s geographical regions nestle decided to distribute its products through the distributors on the contract basis, instead of hiring employees to do this job which would increase its costs many folds. Through these distributors nestle ensures that its customers should get its products wherever, whenever and however possible. That’s the reason consumers in Pakistan has never witnessed shortage of nestle products on the market shelves. Nestle also offers the free delivery services.

Communication and effective marketing campaigns:

Nestle is a giant in the food industry. It not only knows how to produce goods and innovate and renovate them, but it also understands the people through out the globe. Nestle entered into water business at the time when number of diseases due to dirty water consumption was touching the sky. Pakistan is an agricultural country where water is in abundance and people living here are accustomed to drink fresh water from the ground. When nestle launched its water pure life back

in 1998 people could not get the idea behind it therefore nestle ran a huge campaign to increase the awareness among the people of Pakistan regarding to the water related diseases, which helped people to accept the idea of safe bottled water which was new to them.

People in Pakistan are habitual of having heavy breakfast rich in carbohydrates and fats. When nestle launched the breakfast cereals people did not accept the idea quickly hence nestle ran an awareness campaign regarding to the healthy eating habits and how to keep ones body fit, which helped in the product acceptance.

Investors and nestle:

People trust nestle therefore nestle has got this edge that investors find it a very attractive organization to invest in on the stock market

Long term views:

Nestlé makes clear a distinction between strategy and tactics. It gives priority to the long-range view. Long-term thinking defuses many of the conflicts and contentions among groups – this applies to employment conditions and relations with employees as well as to the conflicts and opposing interests of the trade and the industry. Of course, Nestlé’s ability to focus on long-term considerations is only possible if it is successful in the struggle for short-term survival. This is why Nestlé strives to maintain a satisfactory level of profits every year.

Decentralization

Switzerland is home to Nestlé’s Swiss subsidiary, its international headquarters and the registered office of Nestlé’s holding company, but Nestlé does not regard its Swiss headquarters as the center of the universe. Decentralization is a basic principle of Nestlé. Its policy is to adapt as much as possible to regional circumstances, mentalities and situations. By decentralizing operational responsibility, it create strength and flexibility and are able to make decisions that are better attuned to specific situations in a given country. Policies and decisions concerning personnel, marketing and products are largely determined locally. This policy creates stronger motivation for Nestlé’s executives and employees

and a greater sense of identification with Nestlé’s business. It is not Nestlé’s

policy to generate most of its sales in Switzerland, supplemented by a few satellite subsidiaries abroad. Nestle strives to be an “insider” in every country in which it operates, not an “outsider.”

Nutrition as the corporate strategy:

Nestlé describes itself as a food, nutrition, health, and wellness company. Recently they created Nestlé Nutrition, a global business organization designed to strengthen the focus on their core nutrition business. They believe strengthening their leadership in this market is the key element of their corporate strategy. This market is characterized as one in which the consumer’s primary motivation for a purchase is the claims made by the product based on nutritional content.

In order to reinforce their competitive advantage in this area, Nestlé created Nestlé Nutrition as an autonomous global business unit within the organization, and charged it with the operational and profit and loss responsibility for the claim- based business of Infant Nutrition, HealthCare Nutrition, and Performance Nutrition. This unit aims to deliver superior business performance by offering consumers trusted, science based nutrition products and services.

Weaknesses

Product related weaknesses:

Breakfast cereals:

The main weakness of nestle in Pakistan is regarding to their breakfast cereals. Their cereals are not that successful in Pakistan as they are in western countries. A third world country like Pakistan where there are not enough facilities people

have to depend on their manual strength, therefore in order to get enough energy to work all day long people rely on heavy breakfast rich in calories while the nutritional value of breakfast cereals is not compatible with Pakistani lifestyle. A recent report by the UK Consumers Association claims that 7 out of the 15

breakfast cereals with the highest levels of sugar, fat products.

and salt were Nestlé

Powdered milk:

The Zhejiang Administration for Industry and Commerce (ZAIC) in China conducted a routine quality test on Nestlé powdered milk products and found that iodine content in 91.7 percent of the sample exceeded the legal limit set by the Ministry of Health. When provincial governments called for removal of the product from store shelves, a Nestlé representative admitted that the company knew its product was over the local iodine limit, but instead chose to comply with international standards that set no cap on iodine levels. Nestlé issued a recall of the milk product ten days after the government warning over iodine content; however the company refused to reimburse customers for their purchase and would only allow the exchange of powdered milk for another Nestlé product.

Milk:

According to South Africa-based global anti-poverty group, ActionAid International, approximately 50,000 Brazilian dairy farmers have been forced out of business as a result of aggressive takeovers by Nestlé and Parmalat.

In Peru, Nestlé controls 80 percent of the nation's milk production

Though such lawsuit haven’t been witnessed in Pakistan yet but nestle has taken over much of the milk production in southern Punjab which is the largest milk production region in Pakistan. All this has led the shortage of milk for the local poor people who can not afford nestle products at all.

Water:

A 2006 report by the Connecticut-based Container Recycling Institute which is a nonprofit dedicated to increasing recovery and recycling of beverage containers and San Francisco-based nonprofit As You Sow which aims to promote corporate accountability, grades America’s top beverage companies on their efforts to use recycled content, increase recovery and recycling, and reduce the

amount of material used in beverage containers. Nestlé Waters earned F’s in every area surveyed. Nestlé Waters scored an F grade overall, with a GPA of 0.1 (on a 4.0 scale).

Ailments caused by the consumption of products:

A

lot of adverse medical

conditions have been witnessed in

Pakistan among the

continuous consumers of nestle products, which include:

hair fall due to the consumption of nestle PURE LIFE yellow teeth caused by consuming EVERYDAY tea whitener stomach problems such as acidity caused by consuming nestle NIDO

Lack of innovation at nestle Pakistan:

The fact that they are the market leader in the Pakistan may be hindering them from innovation. Since the nestle targeted customers in Pakistan are less in number as people belonging to middle class in Pakistan can not simply afford nestle products for daily use customers in Pakistan are neither much demanding nor there are strong competitors, therefore nestle has been producing same old products in Pakistan for years without any innovation.

Discriminatory acts:

Lower pays for milkmen in third world countries:

Nestlé pays 15 cents for every liter of milk produced in developing countries, compared to wages of 48 cents per liter received by dairy farmers in Europe. However, the origin of milk accounts for little to no difference in its retail price. The price of milk from developing countries and Europe are virtually the same in supermarkets everywhere.

Genetically engineered foods:

Nestlé continues to employ a double standard for incorporating genetically engineered food in its products. Nestlé refrains from using genetically engineered products wherever they are required to bear identifying labels. However, genetically engineered foods are used in a variety of Nestlé products in countries

where no such regulations exist. Concerns have been raised about the safety of genetically engineered foods, particularly as they could cause health issues such as antibiotic resistance, allergic reactions and toxin development.

Substandard products for third world countries:

Nestle products available in the first world countries are far better in quality as

compared to

the nestle

products available in the third

world countries like

Pakistan. While nestle is charging same international prices from all the consumers.

Since nestle is a huge company with its headquarters based in Switzerland, therefore whenever a new venture has to be started in its any subsidiary a long procedure is involved for getting permission from the headquarters which is quite time consuming.

Nestle has positioned itself as health and nutrition company while it is selling the processed food which contain food additives and preservatives not good for health. This weakness of nestle leads health conscious people avoid using nestle products.

Water related issues:

Ruthless water privatization an attack on humanity:

Nestlé, Coke, Danone and Pepsi are the major targets of a Polaris Institute report exposing the dark side of the water industry. “Inside the Bottle: An Exposé of the Bottled Water Industry” highlights the abuses of these corporations, including fraudulent advertising, ruthless water privatization, and the distribution of unsafe water. These four companies dominate the world’s bottled water market.

"Drinking Water Crisis in Pakistan and the Issue of Bottled Water: The Case of Nestlé's 'Pure Life'" (April 2005).

Nestlé has been criticized for its bottled water operations in Pakistan:

The population of Pakistan suffers from water scarcity and limited potable water, with 40 percent of urban residents and as much as 90 percent of rural residents lacking access to water for their daily needs. Nestlé's water extraction has put the

company in direct competition with local communities for precious groundwater resources. In the Lahore district where Nestlé sources its 'Pure Life' brand water, 4.11 million people depend on 316 tube wells to supply their tap water. Nestlé pumps water from the same groundwater source for its industrial production, essentially without regulation.

The Sindh High Court in Karachi curtailed Nestlé's plans to build a water bottling plant projected to extract 306 million liters annually and produce 228 million liters of bottled water per year. Rather than selling its products in Karachi where potable water is greatly needed, Nestlé disclosed that the American military base in Kandahar, Afghanistan was the intended end market.

Nestle water related issues through out the world:

According to Canadian-based Polaris Institute, which fights for democratic social change, Nestlé has been implicated in the following water-related issues:

Poland Spring brand bottled water issue:

In 2003, Nestlé faced 12 class-action lawsuits regarding the origin of its Poland Spring brand bottled water. Nestlé markets the product as pure and natural spring water; however the lawsuits claimed that Poland Springs is in fact drawn from common groundwater sources and is then treated with multiple filtering processes. The plaintiffs claimed that Nestlé’s Poland Spring brand "advertised their water in a false, fraudulent, deceptive, and misleading manner," and also alleges that contrary to advertisements, the product is not spring water and may not even be safe to drink. A settlement of $12 million dollars was awarded to plaintiffs in one case. The other 11 cases have yet to be settled.

Ice Mountain Spring Water Co issue:

In 2001, Michigan Citizens for Water Conservation filed a lawsuit against Nestlé Waters North America (NWNA) requesting that operations at the Ice Mountain Spring Water Co. plant be closed. The lawsuit claimed that production would reduce water levels in lakes and streams in surrounding areas, jeopardizing fresh water sources for local communities. Convinced of the threat to area lakes and

streams, a judge ordered Nestlé to cease pumping water in 2003; however, within a few weeks operations resumed

Nestlé’s Zephyr hills bottled water issue:

In Pasco County and throughout Florida, Nestlé has been the focus of concern regarding water extraction in areas that are drought-prone. Nestlé’s Zephyr hills bottled water is sourced from the Crystal Springs, which feeds into the river that serves as the Tampa Bay area’s main source of drinking water. When the region was plagued by drought in 2000 and 2001, Nestlé pressured Florida to allow for an increase in its water drawings from 1.14 million to 6.8 million liters per day. An appeals court eventually denied the request.

Demineralization of water issue:

After Nestlé built a water bottling plant on top of a rare mineral water aquifer in Sao Lourenco, Brazil, residents began reporting a change in the water’s flavor. When the famous aquifer ran dry, Franklin Frederick of the Water Citizenship Movement began investigating Nestlé’s operations and the possible effects it had on the water source

Ethical misconduct:

Infant formula milk issue:

Every 30 seconds a baby dies from unsafe bottle feeding in the Third World

Nestlé and Wyeth, two of the World's largest producers of powdered baby milk, are currently breaking a World Health Organization Code on the marketing of breast milk substitutes.

Nestlé and Wyeth provide free milk to maternity hospitals in the Third World so that newborn babies are routinely bottle-fed. When newborn babies are given bottles, they are less able to suckle well. This makes breastfeeding failure likely. The baby is then dependent on artificial milk. When the mother and baby leave hospital, the milk is no longer free. At home parents are forced to buy more milk, which can cost 50% of the family income. Because the milk is so expensive the child is not fed enough. This leads to malnutrition. The water mixed with the

formula is often contaminated. This leads to diarrhea, malnutrition and often death. James Grant, Executive Officer of UNICEF, has said: Every day some 3,000 to 4,000 infants die because they are denied access to adequate breast milk. 1.5 million Babies die every year from unsafe bottle feeding. Breast feeding is free and safe and protects against infection - but companies know that unless they get babies on the bottle, they don't do business.

Children trafficking to harvest cocoa beans:

The workers' rights group, International Labor Rights Fund (ILRF) has sued Nestlé, Archer Daniels Midland, and Cargill in Federal District Court in Los Angeles for involvement in the trafficking, torture, and forced labor of children who cultivate and harvest cocoa beans that the companies import from Africa. The ILRF and plaintiffs in the case filed suit on behalf of a class of Malian children who were trafficked from Mali into the Ivory Coast and forced to work 12 to 14 hours a day with no pay, little food and sleep, and frequent beatings. The three children representing the class of plaintiffs are proceeding anonymously, for fear of retaliation by the cocoa farm owners implicated in the lawsuit.

Substandard contaminated milk issue:

In November 2002, police ordered Nestlé Colombia to decommission 200 tons of imported powdered milk. The milk had come from Uruguay under the brand name Conaprole, but the sacks had been repackaged with labels stating they had come from a local Nestlé factory, and stamped with false production dates of 20th September and 6th October 2002. The real production dates were between August 2001 and February 2002. A month later another 120 tons with similarly false country of origin and production dates were discovered, pointing to systematic fraud. The discoveries caused a stir, with senators insisting the Attorney General conduct a full inquiry leading to prosecutions.

Coffee farmer pay issue:

Nestlé scored a 43 on Oxfam's rating of the 4 major coffee producers in 2003. According to Oxfam's report, "On the positive side, it [Nestlé] led the major roasters in participating in various international forums and supporting the efforts of the International Coffee Organization, but all this talking has yet to benefit any

of the struggling farmers

...

Nestlé

failed in a key area--paying the farmer a decent

price for their coffee." Companies were graded on the price they paid to farmers (70 percent), support for policy alternatives (10 percent), financial contributions (10 percent) and leadership in industry-wide initiatives (10 percent). Other companies graded are Kraft, Procter & Gamble and Sara Lee. In 2002, farmers’ income from coffee crops could buy merely one-quarter of what it could in 1960. Adjusted for inflation, the current rate farmers are paid for coffee is perhaps the lowest rate in a century.

Managerial weakness:

Operational delays:

Since nestle is a huge company with its headquarters based in Switzerland, therefore whenever a new venture has to be started in its any subsidiary a long procedure is involved for getting permission from the headquarters which is quite time consuming.

Union busting activities:

The International Labor Rights Fund (ILRF), which advocates for fair treatment of workers, sued Nestlé in the U.S. District Court for the Southern District of Florida for its complicity in the torture and murder of Luciano Enrique Romero Molina. Romero was a Colombian trade unionist and former Nestlé employee. According to the lawsuit, Colombia’s paramilitary murdered Romero in response to his role in exposing Nestlé’s use of expired milk in its Milo brand drink. The suit claims that Nestlé and two of its subsidiaries “acted in concert with, conspired with, aided and abetted or otherwise retained as agents the individuals” who murdered Romero.

Political biasness:

Nestlé USA’s Political Action Committees (PACs) contributed $112,800 USD to political candidates between 2002 and 2004. The company handed out soft money donations worth a total of $225,892 from 1998 to 2002, the majority of

which went to Republican Party candidates. Joseph Weller, Nestlé USA Chairman, raised more than $100,000 for George Bush’s reelection campaign, and was dubbed a ‘Pioneer’ by the Bush 2004 campaign.

Pollution:

The Institute of Public and Environmental Affairs, a Chinese non-governmental organization, blacklisted Nestlé as one of 33 multinational corporations responsible for causing water pollution. Nestlé Shanghai Ltd, Nestlé’s bottled water manufacturing plant in China, was cited for starting operations before its wastewater treatment facilities had passed an environmental impact assessment.

International strategy:

Opportunities

Nestlé is a global organization. Knowing this, it is not surprising that international strategy is at the heart of their competitive focus. Nestlé’s competitive strategies are associated mainly with foreign direct investment in dairy and other food businesses. Nestlé aims to balance sales between low risk but low growth countries of the developed world and high risk and potentially high growth markets of Africa and Latin America and Asia. Nestlé recognizes the profitability possibilities in these high-risk countries, but pledges not to take unnecessary risks for the sake of growth. This process of hedging keeps growth steady and shareholders happy.

Nestle takes ingredients from the local market:

When operating in a developed market, Nestlé strives to grow and gain

economies of scale through foreign direct investment in big companies. In the developing markets, Nestlé grows by manipulating ingredients or processing technology for local conditions, and employ the appropriate

brand. For example, in many European countries most chilled dairy products contain sometimes two to three times the fat content of American Nestlé products

Another strategy that has been successful for Nestlé involves striking strategic partnerships with other large companies. In the early 1990s, Nestlé entered into an alliance with Coca Cola in ready-to-drink teas and coffees in order to benefit from Coca Cola’s worldwide bottling system and expertise in prepared beverages.

Nestle strategies in Asia:

European and American food markets are seen by Nestlé to be flat and fiercely competitive. Therefore, Nestlé is setting is sights on new markets and new business for growth. In Asia, Nestlé’s strategy has been to acquire local companies in order to form a group of autonomous regional managers who know more about the culture of the local markets than Americans or Europeans. Nestlé’s strong cash flow and comfortable debt-equity ratio leave it with ample muscle for takeovers. Recently, Nestlé acquired Indofood, Indonesia’s largest noodle producer. Their focus will be primarily on expanding sales in the Indonesian market, and in time will look to export Indonesian food products to other countries. Nestlé has employed a wide-area strategy for Asia that involves producing different products in each country to supply the region with a given product from one country. For example, Nestlé produces soy milk in Indonesia, coffee creamers in Thailand, soybean flour in Singapore, candy in Malaysia, and cereal in the Philippines, all for regional distribution.

Opportunities in Pakistani market:

One opportunity that Nestle has is that health-based products are becoming more popular in the world, including in the Pakistan. Consumers are becoming more health conscious, and realize that living longer isn’t only by luck and genetics. Nestle also has an opportunity of being even a larger market leader because no other company in Pakistan has ever positioned itself as so customer oriented and differentiated themselves as food and nutrition company.

The greatest opportunity that nestle can avail is that, Pakistani market is still not mature enough and there are huge opportunities to grow. Pakistani market is an expanding market and it has got a lot of flexibility. People in Pakistan are

becoming more aware about the health issues and they have started to take care about their bodies.

Lack of competition:

Since no other strong competitor is prevailing in the market nestle has got the opportunity to attract the customers totally towards its market offerings and can easily build customers preference for its brands.

Being a world leader in business nestle has got enormous resources, therefore by utilizing those resources nestle can run massive campaigns to create the awareness among the people regarding health issues, create a need for their products and attract customers by educating them.

Since Pakistani market is still an immature one nestle can win the whole market through its enormous research, development, innovation and experience.

Economic Trends:

During the past ten years economic trends have changed drastically, people became rich in Pakistan because of excessive privatization and foreign investment policies of government. In today’s Pakistani economy:

Consumers have a larger disposable income

Urban populations are growing and feeding periods shortening

Research suggests that nestle sales increase if the product is made more available to the consumer

These findings, coupled with today's more discerning consumer, suggest that nestle will be able to capitalize on the impulse nature of the food purchasing decisions of the consumers.

Threats

Missing the targeted customers:

Nestle has positioned itself as health and nutrition company, and targets health conscious people throughout the world. The biggest threat to nestle Pakistan is that, the health conscious people, who are the target market of nestle, do not like

to stuff their bodies with preservatives and food additives which are present in the processed food. Pakistan is a land where fresh eatables are readily available, and those who can actually afford nestle products can also easily afford fresh fruits and vegetables. Over the past ten year awareness regarding to the health issues among the people has increased dramatically and this awareness has induced a negative attitude towards the processed food. Hence for nestle Pakistani market is a tough one to deal with when it comes to the processed food because people do not need it when fresh eatables are available in abundance. Therefore nestle has to create the need before introducing a new product in Pakistani market.

Fake nestle products:

One of the threats that nestle faces in the Pakistani market is the availability of fake nestle products for sale, hence customers are deceived when they consume the substandard products consequently they loose trust and stop the consumption of the nestle products.

Discontentment due to the discriminatory acts:

Much discontentment prevails in the Pakistani market due to the fact that nestle products available in Pakistani market are of inferior quality as compared to similar nestle products available in the markets of first world countries, while they are charging the same international prices from the consumers of all countries.

Milk production and human rights:

Since Nestle has opened a milk processing plant in Kabirwala, Punjab in Pakistan. The plant is reportedly Nestlé’s largest milk reception facility in the world, and has a processing capacity of 2 million liters per day. This is expected to rise to more than 3 million liters in the coming years, the company said. This has led the human rights Ngoc’s working in Pakistan to rally against nestle regarding to the fact that local people are being deprived of milk because of Nestlé’s such act.

Competitors:

A threat prevailing in the Pakistani market is coming from the competitors, local as well as multinational competitors. Local competitors like Shezan and Haleeb are producing the similar products and selling them for lower prices. Companies like coca cola and Pepsi are tough competitors to beat specifically when coke has got a far better distribution system in the market.

Allergic reactions:

Due to the following allergic reactions caused by the consumption of nestle products consequently people are becoming more and more dissatisfied and hence lower level of sales.

Allergic reactions caused by the consumption of nestle products:

A

lot of adverse medical

conditions have been witnessed in

Pakistan among the

continuous consumers of nestle products, which include:

hair fall due to the consumption of nestle PURE LIFE yellow teeth caused by consuming EVERYDAY tea whitener Stomach problems such as acidity caused by consuming nestle NIDO.

Nestlé is a multinational packaged food company founded and headquartered in Vevey, Switzerland. It resulted from a merger in 1905 between the Anglo-Swiss Milk Company for milk products established in 1866 by the Page Brothers in Cham, Switzerland and the Farine Lactée Henri Nestlé Company set up in 1867 by Henri Nestlé to provide an infant food product. Several of Nestlé's brands are globally renowned, which made the company a global market leader in many product lines, including milk, chocolate, confectionery, bottled water, coffee, ice

cream, food seasoning and pet foods. The company stock is listed on the SWX Swiss Exchange.

Much of the company's public image has been dominated by the world-wide media furore that surrounded the manner in which it sold its breastmilk substitute to developing countries, which led to the Nestlé boycott from 1977. Although the company has taken serious measures to combat the damage that this caused to its brand, it is still widely associated with questionable business ethics especially with regards to the developing world.

NESTLE PRODUCTS

Nestlé has a wide range of products across a number of markets including coffee (Nescafé), Water, other Beverages, Ice cream, Infant foods, performance and healthcare nutrition, seasonings, frozen and refrigerated foods, confectionery and pet food.

DEFINITION OF PRODUCT:

“Anything that is produced, whether as the result of generation, growth, labor, or thought, or by the operation of involuntary causes; as, the products of the season, or of the farm; the products of manufactures; the products of the brain.”

”The word product qualifies a marketing concept. A product is more than a person, place or thing. Nothing is more important to a marketing strategy than the "product concept”.

Aggressive marketers believe that continuous product development is the most important of all strategic marketing activities.

WHAT IS PRODUCT MARKETING?

An organization must properly define the function of strategic product marketing before it can be effective. For example, one common mistake is thinking that marketing is advertising, another is that marketing is gathering information or finding new prospects. While these objectives are certainly key parts of marketing, the successful strategic marketer will seek additional objectives.

The definition of strategic marketing is usually divided into four functional areas.

Marketing includes having something for people to buy, finding people who will buy, encouraging people to buy, and providing value. Together, these objectives form a picture of strategic marketing.

To more easily remember these objectives, marketing is often described as The Four P's:

Product

Place

Promotion

Price

NESTLE BRAND EQUITY:

Nestle has been serving this world for over one hundred and thirty years. Over all these years nestle has successfully gained people’s trust, hence they are even ready to pay premium price for nestle products, because they know that they are buying something valuable for their money. Nestle has differentiated itself with its high quality products, it has positioned itself as health and nutrition company and targets health conscious people around the globe. Therefore nestle has got a very strong brand equity.

PRODUCT DEVELOPMENT AT NESTLE:

Nestlé is probably unique in the food industry in having an integrated research and development program that engages in applied and basic research in the fields of human physiology, health, nutrition and raw materials. Its research and development program gives it the capacity to create new types of products that we cannot even imagine today, especially in the critical area where preventive medicine and food products overlap. In addition, as concern for the environment grows, research will play an important role in overcoming environmental problems. For Nestlé, this is particularly important in packaging. Concern for the effects of packaging on the environment is forcing it to look for new solutions and to consider their interaction with our biological product -- food.

The Nestlé research and development centers have two main tasks: to create new products and manufacturing processes and to improve those that already exist. These centers play a key role in product safety and quality and also have their role in conserving resources and protecting the environment. Environmental concerns are an integral part of any development process to ensure that our future commercial operations meet the desired criteria.

The Nestlé Research Center provides the scientific support needed to prevent and solve environmental problems arising in the development groups as well as manufacturing. In addition, studies are carried out to find new ways of using industrial residues to create valueadded byproducts. This will reduce total emissions and effluents.

The Nestlé development centers prepare environmental impact studies for new products and manufacturing processes. These cover all aspects, from raw materials, through processing, to the final packed product. These analyses provide additional elements for use in deciding whether to commercialize a new product, or to introduce a new or modified process.

NESTLE PRODUCTS LIFE-CYCLES:

Nestle deals in eatables whose lifecycle is as old as the humanity itself, therefore nestle products enjoy a long life-cycle. Not only this nestle keeps on innovating new products keeping in view the changing global needs and also renovating the existing products, for example nestle introduced calcium fortified corn flakes and fruity yoghurt.

C OMPONENTS OF NESTLE PAKISTAN:

NESTLE PRODUCT CLASSIFICATION:

Nestle deals in both type of products:

1) consumer products 2) industrial products CONSUMER PRODUCTS BY NESTLE:

The type of consumer products in which nestle deals are basically convenience products that consumer usually buy frequently, immediately and with a minimum of comparisin and buying effort. Nestle provide superior quality products in pakistani market, that is the reason they achieved a bigger market share of consumer convenience products in a short period of time. Nestle is a market leader difficult to compete.

INDUSTRIAL PRODUCTS BY NESTLE:

Though nestle deals in eatibles only but its products are also used as industrial products. Nestle products are used as manufactured materials in restaurants, for example nestle juices are served at hotels like PC, AVARI and HOLIDAYINN for breakfast, moreover its products like cream, yoghurt, cornflakes etc are the part of several recepis served at restaurants. Nestle also provide vending machines like coffee vending machine and juices vending machines at hotels, restaurant, colleges and offices, it also provide services regarding to these machines.

BRAND MANAGERS:

Since nestle is a huge organization therefore there is a brand manager for each of its divisions and they are:

Imran (juices), Majid Saeed (NPL), Ibrrar Khan (Coffee), Jamal (everyday).

NESTLE PRODUCT MIX:

Nestle product mix includes processed food items and hot and cold bevrages.

NESTLE PRODUCT LINE:

A list of nestle product lines is given below:

MILK ,DAIRY & CHILLED DAIRY:

NESTLE MILKPAK

NESTLE NESVITA

NESTLE NIDO

NESTLE NESLAC

NESTLE EVERYDAY

NESTLE YOGURT

NESTLE FRUIT YOGURT

NESTLE RAITA

NESTLE CREAM

NESTLE DESI GHEE

BEVERAGES:

NESCAFE

NESTLE MILO

NESTLE JUICES

NESTLE INSTANT DRINKS

BOTTLED WATER:

NESTLE PURE LIFE

AVA

BABY FOOD:

NESTLE CERELAC

PREAPRED MEALS:

MAGGI 2-MINUTE NOODLES

BRAKFAST CEREALS:

CHOCOLATE & CONFECTIONARY:

NESTLE KITKAT AND KITKAT CHUNKY

POLO

RAW MATERIALS FOR NESTLE PRODUCTS:

Nestle does not generate raw materials to be used in its products by itself instead Nestlé grows by manipulating ingredients or processing technology for local conditions, and employ the appropriate brands. For example instead of going into corporate farming nestle partners with the local milkmen in southern Punjab for its continuous supply of milk. Nestle does not own the fruit farm for its juices instead it purchases orange and mango pulp from Pakistan, pineapple pulp from Malaysia and Thailand and grapes pulp from Spain.

Packaging of nestle products:

Nestle products have been a success on the market shelves because of the following packaging characteristics:

Functional - effectively contain and protect the contents

 

Provide convenience during distribution, sale, opening, use, reuse, etc.

Environmentally responsible

Cost effective

Appropriately designed for target market

Eye-catching (particularly for retail/consumer sales)

Communicate

attributes

and

recommended

use

of

the

product

and

package Compliant with retailers' requirements

 

Promotes image of enterprise

Distinguishable from competitors' products

Meet legal requirements for product and packaging

Point of difference in service and supply of product.

For a perfect product, perfect colour.

NESTLE PRODUCTS IN PAKISTAN :

Details of products attributes, brands and packaging of several nestle products available in pakistani market given below.

Details of products attributes, brands and packaging of several nestle products available in pakistani market given

Pure, rich and delicious NESTLÉ® MILKPAK® standardized UHT milk benefits from Nestlé’s expertise in bringing you the very best life has to offer and benefits from 140 years of consumer trust.

Our extensive milk collection system ensures that the milk you get is of the finest quality. Encourage your family to exercise regularly, eat a healthy, well-balanced diet and drink pure, nutritious milk for good health. Milk is a must-drink for your children as it is a rich source of Calcium that helps in the growth and development of strong bones and teeth. It is equally beneficial in keeping grown- ups bones strong. So live to the fullest and enjoy the pure, wholesome goodness of milk with

Details of products attributes, brands and packaging of several nestle products available in pakistani market given

Low Fat Hi-Calcium Milk & Yogurt Stronger Bones, Smarter You!

Did you know that your body loses a certain amount of Calcium every day that must be replenished on a daily basis? Since your body cannot produce Calcium, you must ensure that you get enough of it in your daily diet. If you are set for an active and healthy lifestyle then you need to get the strength your bones.

NESTLÉ® NESVITA® Milk is available in two handy sizes: 1000ml and 200ml. NESTLÉ® NESVITA® Yogurt is available in a 450g tub packaging.

*Source: Food & Nutrition Board, National Research Council Recommended Dietary Allowances (Revised 1989) One glass is 250 ml One serving is of 125 gms

*Source: Food & Nutrition Board, National Research Council Recommended Dietary Allowances (Revised 1989) One glass is

Sehatmand bachay, sehatmand mustakbil! Healthy kids, healthy future!

Children grow very quickly and so do their developmental needs. That is exactly why Nestlé has developed NIDO® Nutrition System that understands the nutritional needs of your children at all stages of growth.

NIDO® Nutrition System

As a part of the NIDO® Nutrition System, NESTLÉ® NIDO® 1+, 3+, 6+ and NIDO® Fortified comprise a series of Nestlé’s milk powders that address the

developmental needs of children requirements.

according

to

their

age and nutritional

NIDO® is developed for 1+ children NIDO® 3+ with Prebio 3™ is designed aged 1-3 years.
 
NIDO® is developed for 1+ children NIDO® 3+ with Prebio 3™ is designed aged 1-3 years.
 

NIDO®

is developed for

1+

children

NIDO® 3+ with Prebio 3™ is designed

aged 1-3 years. It contains Prebio 1™

support your child’s mental and

to

that helps maintain a healthy digestive

physical development as well as aid

system

and

from upset

protects

healthy digestion.

tummies.

NIDO® is developed for 1+ children NIDO® 3+ with Prebio 3™ is designed aged 1-3 years.
 
NIDO® is developed for 1+ children NIDO® 3+ with Prebio 3™ is designed aged 1-3 years.
 

NIDO® 6+ is for your 6 year old’s

NIDO® Fortified is for children between

stronger bones and teeth. It is focused on children who are experiencing increased physical

4-12 years of age who are growing up in an increasingly competitive

environment

and

something

require

activity. It contains Calci-N™, Nestlé’s natural Calcium source from milk which

extra to ensure success on the playing

field

and

in

the

classroom.

It

is

has Calcium and Vitamin D that help

enriched

with

iron,

24 vitamins and

lock calcium in their bones.

minerals, which are essential for your

child's growth.

 
NIDO® is developed for 1+ children NIDO® 3+ with Prebio 3™ is designed aged 1-3 years.
NIDO® is developed for 1+ children NIDO® 3+ with Prebio 3™ is designed aged 1-3 years.

Growing-up Milk for 1, 2 & 3 years of age

As a mother you want the best for your child and almost always worry about

his/her health. But are you completely sure if your child is getting sufficient

nutrition for his or her good health and development? Many of you may not be so sure. Children between 1 to 3 years of age experience rapid growth and strong height and weight gains making their nutritional requirements unique.

That's why we have NESTLÉ® NESLAC®, growing-up milk for children 1-3 years of age. NESTLÉ® NESLAC® provides the right vitamins and minerals in the right proportions that your little one needs at this particular age. NESTLÉ® NESLAC® is available in Honey flavour and is enriched with the right balance of Protein, Iron, Calcium and Multivitamins to help give your child a strong and healthy foundation for life!

nutrition for his or her good health and development? Many of you may not be so
nutrition for his or her good health and development? Many of you may not be so

Mazaidar chai har bar Perfect cup of tea, every time

We love tea; our day doesn’t begin without it! When it comes to choosing the milk for your favourite cup of tea why should you settle for any ordinary milk?

NESTLÉ® EVERYDAY® dairy tea whiter, made from pure fresh milk gives you that perfect rich taste that only specialized milk can, so you can enjoy the same delicious cup of tea each time!

For your convenience NESTLÉ® EVERYDAY® is available both in powder and liquid forms:

nutrition for his or her good health and development? Many of you may not be so
NESTLÉ® Yogurt is simply nutritious and delicious! It is a popular and preferred accompaniment to our

NESTLÉ® Yogurt is simply nutritious and delicious! It is a popular and preferred accompaniment to our rich desi cuisines and palate! It contains the dairy goodness and benefits of milk with live cultures that help the digestive system function smoothly.

Use NESTLÉ® Yogurt for making chilled lassi, to refresh yourself or help settle your stomach or just enjoy its creamy taste on its own.

Moreover, use NESTLÉ® Yogurt to make some coleslaw, jazz up the typical boring green salad with a spoonful or two or enjoy it straight ‘n simple as your breakfast accompaniment. NESTLÉ® Yogurt is available in serves of 125g & 450g.

NESTLÉ® Yogurt is simply nutritious and delicious! It is a popular and preferred accompaniment to our
NESTLÉ® Fruit Yogurt, a mouth-watering treat with real fruit chunks in sweet creamy yogurt, takes the

NESTLÉ® Fruit Yogurt, a mouth-watering treat with real fruit chunks in sweet creamy yogurt, takes the yogurt experience up a few notches!

It is by far the delicious, healthier alternative to any other snacks – loved by kids and grown-ups alike. It is easily digestible and a good source of Calcium too!

You can have it as a snack, as dessert, or even with your breakfast cereal but most importantly you need not look for an excuse to enjoy this nutritious and healthy treat any time you like!

NESTLÉ® Fruit Yogurt is available in 3 indulgent flavors: Mango, Peach and Strawberry, in ready-to-serve 100g cups.

NESTLÉ® Fruit Yogurt, a mouth-watering treat with real fruit chunks in sweet creamy yogurt, takes the

Pour

it

on

pure

‘n

thick for that

soft,

rich, velvety flavour that is MILKPAK®

Cream.

 

Its silky creamy texture is ideal with strawberries or mangoes! Some prefer to give their coffee a swirl for that creamy finishing touch or put a generous dollop on their naan (round flatbread). MILKPAK® Cream is ideal for desserts, an assortment of toppings and to put a rich spin on whatever you fancy!

If you weren’t happy with the raita (local Pakistani cuisine condiment) served last that was anything

If you weren’t happy with the raita (local Pakistani cuisine condiment) served last that was anything but delicious or the one you had with the chicken tikka at a dinner party had gone sour, take heart.

For reasons of health, convenience and hygiene, life should be simpler when it can be made simpler: with NESTLÉ® Raita you can now indulge your taste buds with the flavour that is just right to compliment your meal. Without the preparation hassle and the worry of quality you can be assured that the raita you are having is nothing but the very best from Nestlé.

NESTLÉ® Raita helps proper functioning of the digestive system, is easily digestible and a good source of Calcium too! Life just got better!

Nestlé® Raita is available with cumin and podina (mint) to give you options to choose from.

If you weren’t happy with the raita (local Pakistani cuisine condiment) served last that was anything
If you weren’t happy with the raita (local Pakistani cuisine condiment) served last that was anything
If you weren’t happy with the raita (local Pakistani cuisine condiment) served last that was anything

Har Ghar Ki Lazeez Rewaiat!

There's nothing like the rich traditional flavour of food cooked in desi ghee.

Whether it's the finest halva, tarqa on the daal or your grandmother's delicious korma, MILKPAK® Desi Ghee adds the magnificence to your menu.

With MILKPAK® DESI GHEE you can be assured of top quality. MILKPAK® DESI GHEE is available in 870g packaging.

With MILKPAK® DESI GHEE you can be assured of top quality. MILKPAK® DESI GHEE is available
Serve it hot or icy cold; strong black or milky, the NESCAFÉ® experiences are as diverse

Serve it hot or icy cold; strong black or milky, the NESCAFÉ® experiences are as diverse and unique as its many blends and varieties. Ranging from the morning wake-me-up, to getting through the day, quiet reflective moments to unwinding, parties to simply hanging out with your pals, the NESCAFE® magic goes beyond just a great tasting cup of coffee; its eye opening, thought provoking & stimulating. It stimulates one physically, mentally and emotionally touching the body, mind and soul. NESCAFÉ® fits the bill A to Z!

Every great tasting cup of NESCAFE® is rich, aromatic and favorable. It is frothy, intense and indulging; bold and satisfying…

Stimulate your mind. Awaken your soul. Arouse your senses. Come alive with NESCAFÉ®.

NESCAFE® Classic kicks start your day and keeps you going and going…

NESCAFE® CLASSIC

Come Alive!

Jaago!

Serve it hot or icy cold; strong black or milky, the NESCAFÉ® experiences are as diverse

NESCAFE® GOLD

The premium blends of coffee that gives you rich taste with an aroma to soothe your soul.

NESCAFE® 3in1

Sugar, Creamer & Coffee; all you need is love and a little hot water. Makes every

cup taste great. Easy to make, convenient to store and hassle free usage.

NESCAFE® 3in1 Sugar, Creamer & Coffee; all you need is love and a little hot water.
NESCAFE® 3in1 Sugar, Creamer & Coffee; all you need is love and a little hot water.

With the new and improved Nestlé MILO®, children have more reasons to be active as it gives them the energy they need for an active and healthy lifestyle. A specific balance of Vitamins, Minerals and Actigen – E help optimize the release of energy from Proteins, Fats and Carbohydrates.

Loaded with extra cocoa and rich malt, Nestlé MILO® has the irresistible chocolaty taste that kids love. So treat your children with Nestlé MILO® and watch them at their active best!

For your convenience Nestlé MILO® is available both in powder and ready to drink forms:

NESCAFE® 3in1 Sugar, Creamer & Coffee; all you need is love and a little hot water.
Oranges are in demand not only for their divine juicy flavour but equally celebrated for their

Oranges are in demand not only for their divine juicy flavour but equally celebrated for their health benefits. They are naturally low in calories and an

excellent source of Fiber and Vitamin C. Nestle uses the orange pulp from the oranges produced in Pakistan. Nestle orange is the only juice that nestle sells and rest of its fruit beverages are nectar. Juice contains 80 to 90% fruit and 10% water and flavors. Where as nectar contains 50% fruit and 50% water and flavors.

Apples have no fat and are cholesterol free. NESTLE® Clear Apple Nectar is made from the finest Apples and is 100% clear. Nestle calls it apple nectar because nectar contains 50% fruit and 50% water and flavors.

As

irresistible as sin itself – give

in to the amber kick of NESTLE® Clear Apple

Nectar.

Grapes also called the ‘queen of fruits’ are known for their great internal body cleansing properties. They are a good source of Vitamin C and Potassium that plays an important role in proper heart functioning by regulating blood pressure and heart beat. Nestle imports grapes pulp from Spain to be used in grapes nectar.

Relish the full-bodied, smooth flavor of NESTLÉ® Red Grapes Nectar and let your taste buds soak in the sensuous richness of Red Grapes.

Pineapples are good source of Vitamin C, an antioxidant that helps fight against free radicals, one of the main reasons for aging.

Made from premium pineapples, NESTLÉ® Pineapple Nectar brings you the exotic taste of pineapples with a refreshing tropical flavor and is a good source of Vitamin C. Nestle imports pineapple pulp from Malaysia and Thailand.

Sink into Fruity Refreshment

Feel the burst of fruity fun and discover the flavors of NESTLÉ® Mango &

NESTLÉ® Mango Orange fruit drink made with the juiciest, sweetest Mangos and racy, sharp Oranges to sass up your taste buds.

Now that is a sweet deal!

ReVitalize With Pure Vitamin Burst!

You are living life in a constant overdrive and your body needs to equip itself to fight the daily wear out.

NESTLE® FRUITAVITALS™ mix fruit juice fortified with Vitamin A, B, C & D is a delightful combination of Orange, Apple and Guava to give you the perfect hit of flavour and Vitamins to get you revitalized and in top gear. What’s more it has no added sugar!

ReVitalize With Pure Vitamin Burst! You are living life in a constant overdrive and your body
ReVitalize With Pure Vitamin Burst! You are living life in a constant overdrive and your body

NESTLÉ® Limo (Lemon) & NESTLÉ® Malta (Orange) Instant Drinks provide fruit-filled refreshment that quenches your thirst and energizes your body with an instant citrus boost!

They are both available in 25g single-serve sachets that are convenient and affordable. But what really hits the spot is that NESTLÉ® Instant Drinks are packed with Vitamin C that provides immunity against diseases and helps put the glow in your skin.

NESTLÉ® Limo (Lemon) gives you 36% RDA of Vitamin C and NESTLÉ® Malta (Orange) gives you 24% RDA of Vitamin C. So get refreshed and invigorated with NESTLÉ® Limo and NESTLÉ® Malta!

Now also available in a convenient 500g Jar packaging

NESTLÉ® Limo (Lemon) gives you 36% RDA of Vitamin C and NESTLÉ® Malta (Orange) gives you
NESTLÉ® Limo (Lemon) gives you 36% RDA of Vitamin C and NESTLÉ® Malta (Orange) gives you
NESTLÉ® Limo (Lemon) gives you 36% RDA of Vitamin C and NESTLÉ® Malta (Orange) gives you

Pakistan’s Favorite Water

NESTLÉ® PURE LIFE™, is pure, safe and healthy drinking water for you and

your family.

Every bottle of NESTLÉ® PURE LIFE™ is produced with the Nestlé Safety System and is carefully sealed with a proprietary seal. Purity of the highest standards is matched by an optimal balance of essential minerals, enhancing the health and wellbeing of your family.

No wonder its Pakistan’s favorite water because more people trust it than any other brand.

For your convenience NESTLÉ® PURE LIFE™ is available in non-returnable 330ml, 0.5 liter and 1.5 liter bottles at retail outlets and Bulk bottles for Home & Office Delivery in 19 & 12 liter (12 liter is available at retail outlets).

Be Good to Yourself Safety, convenience and value are just what you get from AVA ®,
Be Good to Yourself Safety, convenience and value are just what you get from AVA ®,

Be Good to Yourself

Safety, convenience and value are just what you get from AVA ®, your source of

pure, safe and healthy drinking water for you and your family.

AVA ® is packed and sealed in special sterilized bottles and caps to ensure the highest standard of quality and safety, keeping clean of all suspended and dissolved contamination.

AVA ® is available in two economical sizes of 12 and 19 Liter bottles. You can get your 19 Liter bottle delivered free of cost through our home and office delivery service. The 12 Liter take-home bottle can be conveniently collected from any leading retail outlet by placing a refundable deposit.

For your convenience, AVA ® also offers different payment options that give you more value for your money.

*Only available in Karachi

Be Good to Yourself Safety, convenience and value are just what you get from AVA ®,
Be Good to Yourself Safety, convenience and value are just what you get from AVA ®,

Bharpoor nashvonuma! Sehatmand mustakbil ka behtrin aghaaz!

Best Start to a Healthier Future!

Whether it’s your first-born or even your third bundle of joy – each baby is unique and special. You want the best for your baby in every way and that also means the best nutrition for your baby’s healthy development, giving him or her the solid foundation for a bright and healthy future!

From birth to 3 years of age, your baby goes through a period of rapid growth and development. Choosing the best nutrition for your baby can be difficult and confusing and you always wonder if it’s just right.

Each stage of your baby’s growth is unique and so are the changing nutritional requirements. NESTLÉ® CERELAC® infant cereals (6 months onwards) are easy to digest and grouped in stages according to the changing nutritional needs of the growing child, with NESTLÉ® CERELAC® providing the right nutrition at each stage.

NESTLÉ® CERELAC® is available in three sizes: 400g & 200g box packaging and a 25g sachet packaging for your convenience.

Best Start to a Healthier Future! Whether it’s your first-born or even your third bundle of

STAGE

1

STAGE

2

From birth to 3 years, your baby will undergo a period of rapid growth and development.
From birth to 3 years, your baby will undergo a period of rapid growth and development.
 

From birth to 3 years, your baby will undergo a period of rapid growth and

development. Nestlé Developmental Nutrition Plan helps your baby grow through each unique stage so that he/she

development. Nestlé Developmental Nutrition Plan helps your baby grow through each unique stage so that he/she always gets the right nutrition at the right moment.

STAGE 1 GENTLE FIRST FOOD CERELAC® Rice CERELAC® Wheat NESTLÉ® Rice STAGE 2 NEW TASTES CERELAC® Wheat 3-Fruits CERELAC® Wheat Banana

CERELAC® Wheat Honey STAGE 3 RICHER TASTES & TEXTURES CERELAC® Wheat 5-Fruits CERELAC® Chicken Vegetable Rice JUNIOR STRONG FOUNDATION NESTLÉ® NESLAC®

CERELAC® Wheat Honey STAGE 3 RICHER TASTES & TEXTURES CERELAC® Wheat 5-Fruits CERELAC® Chicken Vegetable Rice

New Maggi Atta Noodles - Taste bhi, Health bhi

MAGGI® 2-Minute Noodles™ brand new offering of MAGGI® Atta Noodles contains the natural goodness of whole wheat. A source of Protein and Fiber - good for digestion, great for your heart and essential in the re-building of muscles and cells in your body. Now make sure that the food you eat is tasty as well as healthy!

One pack of MAGGI® Atta Noodles contains the nutritional benefits of 2 Rote of Real Atta (1 pera = 400 gms ).

Jub bhook satay MAGGI® ho jayee!!

Open up a pack of MAGGI® 2-Minute Noodles and give your kids a fun, warm

snack they love to eat! Fast to cook and good to eat! Kids love ‘em!

Did you know that MAGGI® 2-Minute Noodles have 307 Kcal and on an average one serving meets about 35% of your 4-8 year old’s RDA* for Protein

CERELAC® Wheat Honey STAGE 3 RICHER TASTES & TEXTURES CERELAC® Wheat 5-Fruits CERELAC® Chicken Vegetable Rice

Protein plays an important role in the regulation and growth of muscles, skin, hair, eyes and other organs.

So whenever your kids are hungry for a yummy snack, choose from the exciting flavors of MAGGI® 2-Minute Noodles: the widely popular Chicken, Chatkhara and Chicken Tikka for the more adventurous taste buds.

Protein plays an important role in the regulation and growth of muscles, skin, hair, eyes and

* RDA (Required Dietary Allowance): Source is DRIs (Dietary Reference Intakes) for individuals, Macronutrients, Food and Nutrition Board, Institutes of Medicine, National Academies.

Protein plays an important role in the regulation and growth of muscles, skin, hair, eyes and

Breakfast has been declared the most important meal of the day – and with good reason. It’s the first meal after your body has been resting all night and this is the meal that is going to fuel the body and prep it for the day ahead.

All of us: children, teens and even adults benefit from a good breakfast. A bowl of cereal is an ideal way to start your day!

Available in three varieties, NESTLÉ® CORNFLAKES (275g and 150g boxes), kids’ favorite chocolaty NESTLÉ® KOKOKRUNCH® (330g and 170g boxes) and NESTLÉ® HONEY STARS® (300g and 150g boxes), are delicious cereals made from wholesome grains and packed with Vitamins, Calcium and other minerals.

Available in three varieties, NESTLÉ® CORNFLAKES (275g and 150g boxes), kids’ favorite chocolaty NESTLÉ® KOKOKRUNCH® (330g
Available in three varieties, NESTLÉ® CORNFLAKES (275g and 150g boxes), kids’ favorite chocolaty NESTLÉ® KOKOKRUNCH® (330g

Have a break, have a KITKAT

Chocolate is one of the most loved indulgences around the world. It is one of life's little pleasures, which delights the senses of all ages.

NESTLÉ™ KITKAT® is by far one of the most popular chocolates all around the world! It’s trademark red and white colors and the distinct NESTLÉ™ KITKAT® logo makes it one of the most recognized brands ever.

This light hearted treat of wafer fingers coated with delicious smooth chocolate, can be enjoyed in the signature style of snapping one finger at a time.

NESTLÉ™ KITKAT® Chunky is a single solid finger that is perfect for those who want a mouthful!

So have a break have a KITKAT!!!

NESTLÉ™ KITKAT® is sold in 11g, 17g and 35g finger bars and NESTLÉ™ KITKAT® Chunky is available in 46g bar.

Available in three varieties, NESTLÉ® CORNFLAKES (275g and 150g boxes), kids’ favorite chocolaty NESTLÉ® KOKOKRUNCH® (330g
Just the right sweetness, fresh and minty. That’s POLO®, the all-time favourite mint with the hole.

Just the right sweetness, fresh and minty. That’s POLO®, the all-time favourite mint with the hole. It’s popular around the globe for its just-because moments!

POLO® mints are products for all occasions, especially when you need to freshen your mouth and breath with its cool, lingering aftertaste.

POLO® mints come in stick-packs of 6, 14 & 20 mints.

Just the right sweetness, fresh and minty. That’s POLO®, the all-time favourite mint with the hole.

PRODUCT AND SUPPORT SERVICES:

“Only by listening to what people say can we understand what they want and need. Only by understanding their needs can we serve our consumers to the fullest”. Nestle is the first ever company in Pakistan which introduced the

customer services tradition. Nestle listens to its customers carefully and try to rectify the product related problems as soon as possible.

Foresight:

At present, the world faces daunting questions about its ability to provide enough wholesome food for everyone. Malnutrition and poor eating habits are still serious problems in many developing countries. By 2100, the world's population will double. Will it be possible to feed a world with so many inhabitants? At Nestlé, the big picture is all about feeding the world and providing food and nutrition for an ever-growing population. Our response to this situation is to intensify research, strive for innovations and improve quality.

Price

Price is the only revenue generating element among the 4’ ps of marketing. Price can be defined as:

“The amount of money charged for a product or service or the value exchanged for the benefits of the product or service”

More broadly, Price is the sum of all the values that customers give up in order to gain the benefits of having or using a product or service. It’s a very powerful tool at the disposal of an organization to differentiate its offerings.

Pricing strategy:

Nestle pricing is an important strategic issue because it is related to product positioning. Nestle is basically using psychological pricing strategy as they are earning huge profits, approximately 30% on their products. People believe in nestle hence this aspect gives nestle a competitive advantage being a market leader to set its prices high. The main thing behind the success of nestle is they keep an eye on their customers and accordingly they change the price. People

have trust in nestle that is the reason they are willing to buy nestle products again and again. Nestle has always tried to enter the market with the right price and then justifying it with high quality products and by communicating and transferring the maximum value to the customers.

“Duniya Main Her Kemti Cheez Mehngi Nahe Hoti”

This slogan by nestle proves its pricing approach.

In addition to this pricing approach nestle focuses on vide range of SKU’s in order to capture greater market segment keeping in view their buying power. This way nestle ensures their consumption in the entire segment of market. Therefore nestle adopt “value base pricing”.

Nestle has been the low cost leader through its extensive research and efficient operations. The Nestle Group is in principle not directly involved in primary production of raw materials and other food ingredients. In general nestle use locally available raw materials and purchase them either directly from producers or through existing trade channels. Nestle has differentiated itself as health and nutrition company, therefore it targets health conscious people throughout the world. In Pakistan nestle has positioned its brands as something of supreme quality.

Therefore nestle has determined its prices a bit higher than the other local brands available in Pakistan. It targets the people belonging to the upper middle class and above who can afford nestle products for daily use.

In Asia, Nestlé’s strategy has been to acquire local companies in order to form a group of autonomous regional managers who know more about the culture of the local markets than Americans or Europeans. Nestlé’s strong cash flow and comfortable debt-equity ratio leave it with ample muscle for takeovers. Recently, Nestlé acquired Indoo, Indonesia’s largest noodle producer. Their focus will be primarily on expanding sales in the Indonesian market, and in time will look to export Indonesian food products to other countries.

Nestlé has employed a wide-area strategy for Asia that involves producing different products in each country to supply the region with a given product from one country. For example, Nestlé produces soy milk in Indonesia, coffee creamers in Thailand, soybean flour in Singapore, candy in Malaysia, and cereal in the Philippines, all for regional distribution.

All these strategies have helped nestle to keep its costs and consequently its prices low, with the supreme quality products that it offers to its customers. Nestle does not want to become either a conglomerate or a portfolio manager. Nestle wants to operate only those businesses about which it has some special knowledge and expertise.

Retail and wholesale selling at Nestle:

Nestle brings its customers with its products through distributors. Though nestle does not involve itself in retail selling but still it provides its customers with the free home and office delivery facility, but mostly it only go for the wholesale selling.

DISCOUNTS

Discount is the:

“A straight reduction in price on purchases during a stated period of time”

The discount rate offered to the employees in very high. The main reason behind the success of nestle is key consider themselves as a family and then change the price. The discount they offers to their distributors are like 12+1 offer or buy 5000*24bottles and get free dispenser. The discount they give to the customers is of JUMBO rewards for these brands that they sold directly JUMBO rewards are basically the points per bottle earned.

Right now it is limited to the jumbo services. When you earn some points then you can choose different things that are changed after every six months.

“The customers are very much satisfied with our brand and a product, so we don’t wast time in thinking of discount offers, we focus to expand our brand”

By: brand manager juices

WHAT IS PROMOTION?

It is not enough for a business to have good products sold at attractive prices. To generate sales and profits, the benefits of products have to be communicated to customers. In marketing, this is commonly known as "promotion".

Promotion is a form of corporate communication that uses various methods to reach a targeted audience with a certain message in order to achieve specific organizational objectives. Nearly all organizations, whether for-profit or not-for- profit, in all types of industries, must engage in some form of promotion. Such efforts may range from multinational firms spending large sums on securing high- profile celebrities to serve as corporate spokespersons to the owner of a one- person enterprise passing out business cards at a local businessperson’s meeting.

Promotion Mix:

A business' total marketing communications programme is called the "promotional mix" and consists of a blend of advertising, personal selling, sales promotion and public relations tools. It is helpful to define the four main elements of the promotional mix before considering their strengths and limitations.

(1) Advertising

Any paid form of non-personal communication of ideas or products in the "prime media": i.e. television, newspapers, magazines, billboard posters, radio, cinema etc. Advertising is intended to persuade and to inform

(2) Personal Selling

Oral communication with potential buyers of a product with the intention of making a sale. The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to "close the sale".

(3) Sales Promotion

Providing incentives to customers or to the distribution channel to stimulate demand for a product.

(4) Publicity

The communication of a product, brand or business by placing information about it in the media without paying for the time or media space directly, otherwise known as "public relations" or PR.

NESTLE ADVERTISING STRATEGIES:

Nestle launched every product with aberrant marketing strategies and tactics. Some of it's products were a total new concept in our society like tea whitener, two minute noodles, UHT milk e.t.c but with so extensive marketing the products brought this saying into life i.e., vini vici vidi (they came, they saw and they conquered). It conducted puppet shows in schools as well as on roads creating consumer awareness as well as brand preference. Such marketing tactics were unknown (or sparingly seen) before in Pakistan. Recently, launch of Nestle FROTH`E (coffee) and free sampling at Macdonald's proved to be success. Nestle increasing sales is attributed to innovative strategies and a sound distribution network that has proven to be par excellence.

NESTLE’S PHILOSOPHY:

Win consumers' trust

Understand consumers' nutritional and emotional preferences

Serving our consumers and improving their quality of life.

Our strategy starts and ends with the consumer.

NESTLE’S PHILOSOPHY: ∑ Win consumers' trust ∑ Understand consumers' nutritional and emotional preferences ∑ Serving our

Our lifestyles and approach to life has evolved and changed significantly. With new technology and information, our lives are easier, but we are also a whole lot busier. Health and nutrition is more dynamic than ever. Food has evolved from being a necessity to becoming an expression of how we live and what we want from life. It is all about making informed choices. And in this progressive and fast- changing time, your future begins today.

Concepts and products you would have considered eccentric and frivolous earlier are the order of the day. Food is not just about nourishment anymore; it has evolved into a source of taste and pleasure along with health and nutrition benefits.

Consumers will never give up good taste, but more and more, foods that also make good nutritional sense are finding favor everywhere in the world.

This shift and awareness is a fresh approach to life. It is the development and nurturing of a life-long relationship. It is the way forward to: Good Food, Good Life.

NESTLE’S PHILOSOPHY: ∑ Win consumers' trust ∑ Understand consumers' nutritional and emotional preferences ∑ Serving our

Eat well to live well!

There is a lot of hype about two catch phrases: wellness and well-being. They are not exactly the same, yet have inter-linked meanings. Wellness is the platform on which well-being rests.

Nutrition

The science of food in its relationship to health. The essential “good for you” elements that help us grow strong and stay healthy. It refers to how our body uses nutrient substances contained in food so that it can carry out its functions properly.

Health

Soundness of body or mind, characterized by a strong constitution, plenty of energy, a resistance to illness quick recovery, good skin, clear eyes, etc.

Wellness

A condition of enhanced health mainly focused on physicality, an actively sought- after goal; maintained by good diet, exercise and life habits. Feeling of vitality and being in good shape.

Well-being

A state of being happy and healthy, prosperity of spirit, contentment, a feeling of satisfaction and fulfillment in one’s life. Well-being is less focused on physicality, but rather on all three dimensions of body, mind and soul. Well-being is inclusive of good health and wellness, encompassing the emotional dimensions of look good and feel good.

However all the happiness in the world can only be meaningful if one is healthy. Like it is said, ‘Jaan hai tau jahan hai.’ This means that with good health, you have the world at your feet. Eat well to live well; after all we are what we eat. Remember: there are no bad foods, only bad diets so make your choices with care and know your own nutritional needs.

Nestlé is leading the change in the food industry as it is also the leading food

Nestlé is leading the change in the food industry as it is also the leading food company in terms of having the largest set up of research and development in food science and nutrition. We are uniquely positioned to provide products that help consumers live a good life. Many Nestlé brands have benefited from the active ingredients developed by Nestlé research and with over 130 years of expertise, consumers know they are getting the best in quality when they choose a Nestlé brand.

Happy and healthy consumers are at the heart of what we do. Our company philosophy is summed up in the phrase “Good Food, Good Life: and we remain committed to help consumers choose better tasting and healthier products to help them enjoy happier, healthier lives. We welcome you to a world of health and wellness!

To live a healthy, fulfilling life, you need to stay on top of your nutritional and lifestyle requirements. Eating anutritious and balanced diet lies at the foundation of a life of good health and wellness. However, besides good food, you also need to stay fit, active and keep stress at bay. Recognize that your body and mind will change as you grow older – and so will their special needs.

We have collected some great ideas to help you explore how easy it is to bring wellness into your life, no matter how busy you are. Moreover, you will also find out how to have fun doing it!

Nestlé is leading the change in the food industry as it is also the leading food
Nestlé is leading the change in the food industry as it is also the leading food

Good Food, Good Life is about making sure your kids live a life of well-being. For your children to be bright, healthy & active, you need to know for every age what their nutritional and lifestyle requirements are.

Here we bring together a wealth of ideas that help bring together friends, parents, sisters and brothers to discover new ways to grow together, participate

in group activities and strengthen relationships with each other. We share little ideas that help you be a more supportive and nurturing parent.

Go back to the basics that hectic life shoved on the backburner, and rediscover the joys of parenting! It's the little things that make all the difference in the world, so unlock all the little ideas for big fun, love and the joy of being a happy family.

NESTLE’ CONSUMER COMMUNICATION PRINCIPLES:

Communication with consumers

_All representation including text, sound, and visual, should accurately represent the product, including taste, size, and content.

_ Health benefit claims must have a sound scientific basis, comply with applicable legislation and regulations, and be easily understood by consumers.

Nutrient content information, including fortification and nutrition claims, must be made in a way that accurately reflects the nutrition composition of the product, and comply with applicable legislation and regulations. Specific benefit claims/propositions on packaging must reflect local legislation.

_ Food advertising should depict moderation in food consumption, including moderate portion sizes

(i.e.: not excessive, but sensible), with portion sizes appropriate to the target audience and social context. _ Wherever possible and appropriate, food and drink advertising should depict an active, rather than a sedentary, life style. _ Products that form only part of a meal should clearly be depicted as such. Unless a snack food or beverage has been nutritionally designed as a meal replacement, it should not be portrayed as such. Snacks and confectionery bars should be promoted in a manner that does not suggest that they replace a meal. _ The content of consumer communications must reflect good taste and social responsibility in accordance with each country’s laws and regulations and voluntary codes and standards. Although standards will vary from country to country, it must not display vulgarity, bad manners or offensive behavior and there must never be an intention to shock or offend.

_ Advertising content must not depict attitudes that are discriminatory or offensive to religious, ethnic, political, cultural or social groups. _ Advertising should avoid exploiting media events that could be in bad taste. _ Advertising should never exploit the misfortunes of others. _ Consumer communications must show the consumption of products in a safe way, and not depict persons engaged in dangerous activity. _ Advertising should not name competitors directly, portray competitive products inaccurately, nor denigrate them. It is against Nestlé principles to sponsor or place advertising in television and radio programmes, or magazines and websites whose strategy for attracting viewers or readers relies on exploiting violence or sex, or encouraging offensive behavior to others. When collecting consumer data, including from children, Nestlé complies with applicable privacy legislation and regulations, and applies Nestlé standards where specific

Children as consumers

In addition to the above principles for all consumers (including children), Nestlé has developed the following principles for communication specifically aimed at children. (By “children” in general we mean those less than 12 years, but definitions vary from country to country.)

Nestlé must at all times be diligent in applying these principles, and use common sense and good judgment to interpret them appropriately for each country.

_ Food products advertised to children must be appropriate for the specific age range portrayed in the advertisement.

_ Advertising should not mislead about potential benefits from the use of the product. Such potential benefits may include, but are not limited to, status or popularity with peers, physical growth, strength or proficiency.

_ Our communication must not undermine the authority of parents. Children shown in our communication should not be seen urging parents or others to buy products.

_ Advertising directed to children should not create a sense of urgency; imply exclusivity, or price minimization, for example, by using words like “now” and “only”.

_ Advertising should not portray or encourage behavior intended to shock or create anxiety in children, including use of violence, or sexual innuendo.

_ Fantasy, including animation, is appropriate for younger as well as older children. However, it should not create difficulty in distinguishing between the real and the imaginary.

_ Products developed from or associated with programmed content primarily directed to children should not be advertised during or adjacent to that programmed.

_ Programmed personalities, live or animated, should not be used to sell products, premiums, or services in or adjacent to programmes primarily directed to children in which the same personality or character appears. In the same way, a character or personality associated with the editorial content of a print publication should not be used to sell products, premiums, or services in the same publication.

_ Sampling and promotional activities in schools and at events will be done only with the prior agreement and consent of the school administration and event organizers. It should comply with applicable legislation or regulations, and should ideally be accompanied by some kind of educational nutritional messages.

_ In July 2007 Nestlé decided to strengthen its principles on advertising to children yet further, adding the following two new provisions to existing ones.

The following will be fully implemented in all countries by the end of 2008 at the latest

1) No advertising or marketing activity may be directed at children under 6;

2) Advertising for children from 6 to 12 to be restricted to products with a nutritional profile which helps children achieve a healthy balance diet, including clear limits for such ingredients as sugar, salt and fat.

CONSUMERS, DIET AND PHYSICAL ACTIVITY

Nestlé believes that individual responsibility and freedom of choice are basic human rights. However we have a responsibility to help build awareness of how people can exercise control over what they eat and drink – to ensure that they enjoy a balanced diet.

Nestlé considers that proper nutrition and adequate physical activity are integral to maintaining good health.

Nestlé develops, produces, and markets a wide range of foods and beverages. These products satisfy many consumer needs: nutrient content, variety, pleasure, and convenience. Every food and beverage has a role to play in contributing to the consumer’s achievement of a balanced, healthy diet and overall well-being.

PUBLIC RELATIONS What is good for you is good for us!

Consumer Relationship Marketing lies at the heart of Nestlé Consumer services. We strive to build a long-term, sustainable relationship of trust and loyalty.

Our customer staff stands ready to help consumers with any queries or complaints regarding our products, and draws upon Nestlé Pakistan's vast in- house resources to answer questions.

Recently, we launched an advanced consumer contact management system called CONSO+. This is a specialized programme specifically designed to help us deal with contact management and analysis and form closer ties with our consumers.

GETTING CONNECTED

Direct contact with consumers is at the heart of our vision. For many people around the country, our field staff is the face of Nestlé.

These dedicated field staff invite consumers, mostly homemakers, to Nestlé activities.

We invite our guests to learn more about Nestlé and its philosophy and brief them about our brands. We try to give them vital information about health and wellness, to help their families live a better lifestyle.

At these sessions homemakers have the opportunity to learn about a company that produces many of their favorite foods and beverages, globally and locally.

They also have the confidence of knowing that any concerns regarding their family's nutrition, health and wellness will be capably answered. They know that they can rely on Nestlé.

SHARING AND DEVELOPING RECIPES

PROMOTIONAL CAMPAIGNS NIDO –SEHAT KAHANI

Mothers want the very best for their children in every way to provide them with a happy healthy life.

NIDO® Sehat Kahani has been launched to introduce a platform where child nutrition and wellness are brought into focus. Supported by Nestlé’s expertise in nutrition, the NIDO® Sehat Kahani programme endeavors to inform, guide and educate mothers about child nutrition, health, fitness and wellness. NIDO® Sehat Kahani communicates on television with the help of endorsements from educationists, teachers, nutritionists, psychologists and sports coaches to help mothers nurture their children even better by making informed choices and taking appropriate measures for their health and wellness. This programme has been appreciated and met with great success. It is now an integral part of NESTLÉ® NIDO’s® communication to help mothers take care of their children even better.

PROMOTIONAL CAMPAIGNS NIDO –SEHAT KAHANI Mothers want the very best for their children in every way

Doodh ki Qudrati Ghizayat Pure, Nutritious Goodness of Milk

Pure, rich and delicious NESTLÉ® MILKPAK® standardized UHT milk benefits from Nestlé’s expertise in bringing you the very best life has to offer and benefits from 140 years of consumer trust.

Nestle MILKPAK is UHT milk, which gets heat treatment at a very high temperature for a very short time. This kills all micro-organisms in milk. The ultra heat-treated milk is aseptically packed in tetra packing. As the entire UHT process is intact until packing, heated at a high temperature makes it bacteria-free, and hence giving a longer shelf life to the product at an ambient temperature. No chemical preservative is used for extending the product's shelf life. Furthermore, the shelf life of the products is defined after extensive keeping quality studies and analyses.

Pure, rich and delicious NESTLÉ® MILKPAK® standardized UHT milk benefits from Nestlé’s expertise in bringing you

New Maggi Atta Noodles - Taste bhi, Health bhi

MAGGI® 2-Minute Noodles™ brand new offering of MAGGI® Atta Noodles contains the natural goodness of whole wheat. A source of Protein and Fibre - good for digestion, great for your heart and essential in the re-building of muscles and cells in your body. Now make sure that the food you eat is tasty as well as healthy! To communicate healthy tastes of Maggi meal different Nestle teams visited schools and put up their stalls to communicate their message in children and parents. Free samples were distributed among children as well.

Pure, rich and delicious NESTLÉ® MILKPAK® standardized UHT milk benefits from Nestlé’s expertise in bringing you

Mazaidar chai har bar “Perfect cup of tea, every time”

We love tea; our day doesn’t begin without it! When it comes to choosing the milk for your favorite cup of tea why should you settle for any ordinary milk?

NESTLÉ® EVERYDAY® dairy tea whiter, made from pure fresh milk gives you that perfect rich taste that only specialized milk can, so you can enjoy the same delicious cup of tea each time!.Everyday ads and commercials on TV express the relationship and emotional bond between loved ones, how to express emotions…”BANAY HAIN AIK DOSRAY KAY LIYEE”

We love tea; our day doesn’t begin without it! When it comes to choosing the milk
We love tea; our day doesn’t begin without it! When it comes to choosing the milk

NESTLÉ® PURE LIFE™ is pure, safe and healthy drinking water for you and your family .More and more people are realizing that added sugar in beverages is not too healthy and adds unnecessary calories.

Water is vital to the human body and we can not live without it. It is one of the key contributors to wellness. Amongst its many functions, water helps regulate body temperature, transports nutrients and Oxygen to cells, flushes out toxins and waste, cushions joints and protects organs and tissues.

It is recommended that you drink at least 8-10 glasses of pure, safe water every day. If you have an active lifestyle, you will need even more: at least 10-12 glasses a day. It is important that you pay attention to the quality of water you consume for good health and to safeguard against water-borne illnesses!

NESTLE SALES FORCE

Nestle has 485 factories the world over and its one billion items are sold each day. The Nestle company's global chairman, Peter Brabeck Litmathe said that, Pakistan Nestle is the largest consumer industry where its annual sales stand at Rs.22 billion. The Nestle chief executive said the company has given direct jobs to 10,000 people while one million people are employed through business in Pakistan.

Nestle Pakistan, established in 1988, is presently running 5 factories - one each in Sheikhupura and Kabirwala for dairy and other products, two in Karachi and gone water factory in Islamabad.

NESTLE CONSUMER SERVICES:

Nestlé Consumer Services is the main interface between you and the company, and we make every effort to ensure that your voice is heard. After all, it's your satisfaction that really counts.

We want to build a long-term relationship of trust and loyalty with you.

This helps ensure that you, our consumers, are happy, satisfied and able to live fulfilling lives.

Accordingly, Nestlé representatives are poised to provide prompt service and relevant information whenever needed.

We try to talk to you, but more, we listen to you. Only by hearing what you say can we understand what you want and need. Only by understanding your needs can we serve you to the fullest and help you achieve your aspirations.

Consumer Services doesn't just provide us with feedback on our company, brands and products. It helps us gain important consumer insights: what are the relevant values you hold dear? What do you look for in our products?

NESTLE SALES FORCE Nestle has 485 factories the world over and its one billion items are

In our 140 years of experience, we have learnt that businesses and the societies in which they operate are in a symbiotic relationship.

If society flourishes, business is good. If a business does well, it brings wealth and stability to a society.

From this organic interdependence comes our conception of corporate Social Responsibility (CSR).

We try to Create Shared Value at every step of our value chain, to ensure that our actions benefit not only the company, but also society at large. Both are, after all, interdependent. This consideration affects all our corporate initiatives.

In our 140 years of experience, we have learnt that businesses and the societies in whichNutrition Programme for Mothers & Children ∑ Financial SupportWell and Hand-Pump Installation ProjectsHelp Centre for FarmersSchool Rehabilitation and Education AdvancementResearch & Development Initiatives " id="pdf-obj-75-11" src="pdf-obj-75-11.jpg">

Nestlé Pakistan is involved in a wide range of programmes and projects intended to improve the lives of underprivileged Pakistanis.

Our efforts are focused on:

Nestlé respects the environment and is committed to environmentally sound business practices throughout the world, thus
Nestlé respects the environment and is committed to environmentally sound business practices throughout the world, thus

Nestlé respects the environment and is committed to environmentally sound business practices throughout the world, thus taking into account the need to preserve natural resources and save energy.

Marketing is based on the principle of satisfying consumer needs. This is the foundation also for the environmental marketing approach of Nestlé.

Environmental product claims in advertising, promotional material and on packaging are in accordance with legal requirements, based on solid scientific evidence and used in a serious and reasonable manner.

Our aim is to minimize wastage in communication, publicity and promotional material, in particular through more precise targeting of marketing activities.

Consumer promotions and merchandising material such as consumer offers, in store promotions, display material, leaflets, printed matter, etc. take environmental aspects into account.

Nestlé respects the environment and is committed to environmentally sound business practices throughout the world, thus

In October 2005, the biggest natural calamity in our history struck Pakistan. Thousands died and millions were left homeless after a massive earthquake hit our mountainous northern areas.

In step with the rest of the nation, Nestlé Pakistan responded immediately, putting its infrastructure and resources to work in the affected areas.

PLACEMENT

Placement: refers to how the product gets to the customer; for example, point of sale placement or retailing . This fourth P has also sometimes been called Place, referring to the channel by which a product or services is sold (e.g. online vs. retail), which geographic region or industry, to which segment (young adults, families, business people), etc. also referring to how the environment in which the product is sold in can affect sales.

COMPANY NETWORK

Nestle is now the world's largest food company. It is present on all five continents, has an annual turnover of 74.7 billion Swiss francs, runs 509 factories in 83 countries and employs about 231,000 people the world over. The Company owes its current status to the pioneering spirit inherited from its founders which continues to inspire it, to its concern with quality and to its constant search for new ways of satisfying man's nutritional needs. Wherever possible, it sets up factories locally, employs personnel from the country concerned and relies on indigenous raw materials. Its agricultural services provide assistance to improve the quality and yield of the raw materials it uses. Much attention is devoted to professional training and to the integration of the Company in its economic and social environment

NESTLÉ IN PAKISTAN

Headquarters in Lahore, the company operates five production factories. Two of its factories in Seikhupura and Kbirwala are multi product factories. One factory in Islamabad and two in Karachi produce bottled water. Through its effective marketing and a vast sales and distribution network thought out the country, it

ensures that its products are made available to consumers whenever, wherever and however

Nestle value delivery network:

The Nestle Group is in principle not directly involved in primary production of raw materials and other food ingredients. In general nestle use locally available raw materials and purchase them either directly from producers or through existing trade channels. In Asia, Nestlé’s strategy has been to acquire local companies in order to form a group of autonomous regional managers who know more about the culture of the local markets than Americans or Europeans.

Nestlé’s strong

Cash flow and comfortable debt-equity ratio leave it with ample muscle for takeovers. Recently, Nestlé acquired Indofood,

Indonesia’s largest noodle producer. Their focus will be primarily on expanding sales in the Indonesian market, and in time will look to export Indonesian food products to other countries.

Nestlé has employed a wide-area strategy for Asia that involves producing different products in each country to supply the region with a given product from one country. For example, Nestlé produces soy milk in Indonesia, coffee creamers in Thailand, soybean flour in Singapore, candy in Malaysia, and cereal in the Philippines, all for regional distribution. Milk plant at Kabirwala is the Nestlé’s world largest milk processing plant. Nestle pays the local milkmen for the continuous supply of milk to its plant, since Pakistan is the fifth largest milk producing country.

 

FACTORIES

Sheikhupura

29th Kilometer, Lahore - Sheikhupura Road Sheikhupura, Punjab, Pakistan

Phone

:(042) 6369321-6 ET 7228300

Fax

:(042) 6368710

NESTLE ® MILKPAK® UHT milk, NESTLE® NESVITA® products, NESTLE® PURE LIFE™ water, NESTLE® CERELAC® and yogurt. Milkpak UHT milk, produce butter, cream and ghee NESTLE® NIDO® milk powder Nestle NESTLE® PURELIFE™ Fruit yogurt, tea whitener, cream and raita, NESTLE® NESVITA®

Kabirwala

Khanewal - Kabirwala Road, Kabirwala District Khanewal, Punjab, Pakistan

Phone

(06512) 411433-36

Fax

(06512) 411432

Nestle Milkpak MAGGI® noodles NESTLE® EVERYDAY® tea whitening powder

Islamabad

AVA® water factory in Islamabad

Provides our consumers with their favorite brands of bottled water in convenient package sizes.

Auditors A.F. Ferguson & Co. (Chartered Accountants) Legal Advisors Cheema & lbrahim (Advocates) Bankers

ABN AMRO Bank Bank of Tokyo-Mitsubishi Ltd. Citibank N.A. Credit Agricole Indosuez Deutsche Bank A.G Habib Bank Ltd. Muslim Commercial Bank Ltd. Standard Chartered Bank

Standard Chartered Grindlays Bank Ltd.

ORGANIZATIONAL STRUCTURE Definition:

A deliberate arrangement of people to accomplish some specific purpose is called “Organization” and the arrangement is called “Organizational Structure”.

“Nestle’ works according to BUISNESS UNIT STRUCTURE (BUS) and BUISENESS

UNIT MANAGEMENT (BUM).”

NESTLE’S MANAGERIAL ENVIRONMENT

The nestle is a multi-national organization, it has to maintain the measuring

standard of the worlds biggest profit making organization, Nestle’ is the only

organization that sells itself.

The

working

environment

of

the

Nestle’

is

exceptionally friendly and most cooperative. The decision or we can say the managerial style of Nestle’ is decentralized, it means that every employee can be a part of the every decision they take.

SALES STRATEGIES

Real need is required for selling. Nestle products were a real need for the citizens of Pakistan. The increasing number of diseases because of consumption of substandard eatables was the time for Nestle to think of its customer’s health. Government supported the company in launching of Nestle products. It became easy for Nestle to market its goods.

DISTRIBUTION CHANNELS Nestle uses indirect distribution channels to bring its products to the

customers Producers→ Distributors→ Retailers→ Consumers. Nestle does not involve wholesalers in its distribution channel. Nestle products are distributed to the customers mostly through distributors. They buy the distribution on contractual bases. Nestle usually do not go for retail selling. Home delivery service is also provided by Nestle Pure Life. You can buy Nestle Pure Life from any shop in any area. Nestle uses vertical marketing system. Nestle distributes its products through the strong supply chain management strategies and efficient marketing logistics.

Nestle reasons for indirect selling methods:

Distribution channels already established.

Nestle uses its capital for further production.

Too many consumers in a large area; difficult to reach.

Direct on-selling advantages.

Reasons for bypassing wholesalers:

As stated earlier nestle does not involve wholesalers in its distribution channel, the reasons are given below:

Limited storage facilities in Pakistan, since it’s a third world country

here the wholesalers are not well versed to handle products from such a huge company.

Retailers' preferences

Wholesaler cannot promote products successfully

Nestle’s desire for closer market contact

Position of power

Cost of wholesalers' services

Price stabilisation

Need for rapid distribution

Make more money

Nestle has following distribution objectives:

  • 1. To

reach

the customer and better availability of the product to the

customer

  • 2. To capture more market shares as compare to the competitors.

  • 3. Satisfying the changing needs of market.

NATURE OF PHYSICAL DISTRIBUTION DISTRIBUTION CENTRE

A large highly automated ware house is designed to receive goods from plants and suppliers, take orders, fill them efficiently and deliver goods to customers as quickly as possible. Nestle has its distribution centers in Sheikhupura, Karachi, Lahore and Islamabad. The increasing number of customers is forcing Nestle Pure Life to increase its distribution centers. .INVENTORY MANAGEMENT

Inventory management plays an important role in the satisfaction of the customers. Here Nestle should maintain the delicate balance between carrying to little inventory and carrying too much. Nestle Pure Life is running successfully and its difficult for it to maintain its inventory.

TRANSPORTATION

Nestle

uses

all

types

of

transportation.

Usually

Shehzore

is

used

for

transportation. Home delivery service is also provided with the same

transportation. Tracks are used for long transportation to minimize the cost. Triwheelers are used to transport precious water to backward areas.

DISTRIBUTION AND TERMS OF CONTRACT

The distribution is mostly done through the distributors and the agreement is on

contractual bases. The terms and conditions changes with the passage of time and the amount submitted as the security.

Retail and wholesale selling:

Nestle brings its customers with its products through distributors. Though nestle does not involve itself in retail selling but still it provides its customers with the

free home and office delivery facility as direct marketing channel. Nestle products are sold at all types of retail stores which are

1)

specialty store

2)

department store

3)

supermarket

4)

convenience store

5)

Super store.

6)

Chain stores.

RECOMMENDATIONS

Though nestle is an industry giant and doing a successful business around the

world,

but

still

certain

recommended below:

measures

it

should

take

in

Pakistani

market are

1) It should sell better quality products in Pakistani market also just like it sells in first world countries because consumer in Pakistan is much aware today than it was a decade ago. It would help to rectify the feelings of discontent that prevail among the Pakistani consumers against nestle.

2)

Nestle should bring other flavors in breakfast cereals like fruit and

nuts corn flakes to Pakistan since consumers are becoming more

demanding day by day. Moreover Kellogs is offering a wide range of breakfast cereals with far better quality.

3) Nestle should introduce its other chocolates like lion and butter finger in Pakistan, moreover it should also introduce libbys ketchup brand in Pakistan since ketchup brands available in Pakistan are not of good quality.

4)

Nestle should increase the promotional campaigns magnitude since

strong competitors are takingover the industry especially in dairy products.

5)

Nestle should introduce its LC-1 probiotic yoghurt in Pakistan since

people are becoming more health conscious.