ASSIGNMENT

OF
MARKETING

Submitted to:

Ms. Humaira Fakkhar

(Course Incharge of Marketing)

Submitted by:

VIJAY KUMAR JAGGI

MBA
1st Semester

UNIVERSITY OF LAHORE
ISLAMABAD CAMPUS
Monday, January 13, 2009

“INTRODUCTION OF THE COMPANY”

“N E S T L E”
(PURE LIFE!)

Nestle is the world’s most famous company dealing in food products. It is a

multinational operating in almost all over the world.

Nestle assures of purity and quality. It has 142 years of experience in dealing in
food products. It is the world number 1 food company.

Nestle is the world’s largest food company. It is operating in all the 5

continents of the world for the last 140 years.

Nestle is dealing in a very large number of food items offering a wide variety.
Its products are used in almost every home of the world and it has become the
daily necessity of every body’s life.
Nestlé’s History

Nestlé was founded in 1866.

In the 1860s Henri Nestlé, a pharmacist, developed a food for babies who were
unable to be breastfed. His first success was a premature infant who could not
tolerate his own mother's milk nor any of the usual substitutes. The value of the
new product was quickly recognized when his new formula saved the child's life,
and soon, Farine Lactée Henri Nestlé was being sold in much of Europe.
In 1905 Nestlé merged with the Anglo-Swiss Condensed Milk Company.

By the early 1900s, the company was operating factories in the United States,
United Kingdom, Germany and Spain. World War I created new demand for dairy
products in the form of government contracts. By the end of the war, Nestlé's
production had more than doubled.

The first Nestlé factory to begin production in the United States was opened in
Fulton, Oswego County, New York. The factory however was closed in 2001, after the
company decided that the cost of restoring, and updating the factory was not worth
the effort. Employees of the factory were furious, and raised the company flag
upside down the day the closing was announced.

“NESTLE- THE NAME”

Henri Nestle, the founder of “Nestle” created the trade-mark of the Nest, a
translation of his last name.

In German, Nestle means “Little Nest.” The symbol showing 2 young birds being fed
by their mother perched in a nest on an OAK tree, depicts in the motherhood, the
warm, loving, caring, protective and sincere feelings of a mother for her younger-
ones. It is universally understood that nobody can love, care, feed and protect
the young ones other than the mother.

So, this symbol helps to give a visual sign that no body other than the Nestle can
care about its consumers friendly. It shows that the Nestle provides the purest
food product to its consumers because it is as sincere with them as a mother.

It is universally understood that this symbol showing two young birds being cared
by their mother in a nest in a tree, reflects the maternity and affection, nature
and nourishment, family and tradition, and thus helps to draw a visual link
between the name, “Nestle” and its products.

MISSION STATEMENT

At Nestlé, we believe that research can help us make better food so that people
live a better life.
Good Food is the primary source of Good Health throughout life. We strive to bring
consumers foods that are safe, of high quality and provide optimal nutrition to
meet physiological needs. In addition to nutrition, health and wellness, Nestlé
products bring consumers the vital ingredients of taste and pleasure.

As consumers continue to make choices regarding foods and beverages they consume,
Nestlé helps provide selections for all individual taste and lifestyle
preferences.
Research is a key part of our heritage at Nestlé and an essential element our
future. We know there is still much to discover about health, wellness and the
role of food in our lives, and we continue to search for answers to bring
consumers Good Food for Good Life.

LOGO

Nestlé’s trademark family of

birds have been fattened up and
have now become an icon on
formula labels and gift items.

ICON

Another new icon, Blue Bear, has

invaded hospitals and shops around
the world. Blue Bear is conspicuous
on all promotion for complementary
foods and has become an instantly
recognisable mascot even without the
company name.

SLOGAN

Good food, Good life

THE QUALITY

Nestle is the name of Purity and Quality. It stresses on world class standards of
quality.

The high standards of quality of Nestle can be imagined from the fact that it does
not start joint ventures with other products until and uptill they achieves and
prove the standard fixed on Nestle.

Once the Nestle company is ensured the highest quality of the product only then
does it take any company/product under its umbrella.

Nestle has the great consumer trust and image of quality the world over, the
Nestle logo---- “A symbol of the highest quality.”

PRODUCT

The product selected from the wide range of Nestle is its Pure Milk.

INTRODUCTION

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.

Our extensive milk collection system ensures that the milk you get is of the
finest quality.

NESTLE PAKISTAN

More than just offering food and beverages, Nestlé Pakistan is a leading health,
wellness and nutrition company. We believe that good food is necessary for a good
life. In fact, health and nutrition is more dynamic than ever. Food has evolved
from being a necessity to becoming an expression of how we live. This is why
Nestlé Pakistan products are developed to provide a safe and healthy source of
nutrition to
all family members.

NESTLE MILKPAK
HISTORY

NESTLE PAKISTAN LIMITED - MILK PAK

<< Winners Main List
Brand Name:
Nestle Milk Pak

Category:
Milk
 Survey Ratings:
A++

Nestle MilkPak is among the pioneer in Pakistan in pasteurized milk packing and
distribution. From the very start marketing and promotional communications are
directed towards convincing the consumers that packaged milk is healthier, safe
and nutritionally superior to ordinary milk. Introduction of such products has
proved to be a service to the rural community as it has provided them with better
prices of the excess milk available with them and was frequently wasted earlier.
The Consumers consider Nestle as the best quality product manufacturer and the
same is reflected in the introduction and launch of Nestle MilkPak. It established
its brand image very soon and many other organizations later followed the same
pattern to introduce their brands in the same market which has now become fiercely
competitive.
MilkPak is maintaining its quality image and has been voted as the best brand on
the attribute of Quality. Familiarity has been rated as the second most sought
after feature and indicates the superior quality of marketing and promotional
communications which are more directed towards consumers’ awareness of the
benefits of packaged milk. Availability has been rated as third in the sequence
and definitely indicates potential for improvement. Affordability has been graded
as last by consumer voting indicating consumers’ sensitivity to frequent upward
pricing of essential commodities.

PRODUCT LABELING

Nestlé Milkpak is the Pakistan’s most famous milk. Following are the labels of the
Nestle Milkpak.
A 250 ml glass of NESTLÉ® MILKPAK® fulfills your daily requirement of 27-30% of
Calcium, 15-18% of Protein, 31-34% of Phosphorous, 6-9% of Vitamin A and 160-169
Kcal of energy, as Recommended Dietary Allowance by the National Academy of
Sciences, USA.
Color: White
Form: Liquid
Nature: Dairy Milk
Label: Milkpak
Who made it: Nestle
Where it was made: Milkpak Factory

PRODUCT PACKAGING

Nestle Milkpak has four different packages.

The packaged milk category was originated in 1981 by (quaintly named) Milk Pak,
which pioneered tetra pack milk in Pakistan. The supply chain involved collecting
milk from rural areas across Punjab, processing the milk through UHT (Ultra-High
Temperature Processing) treatment, and selling it to consumers in uniquely colored
triangular and rectangular packs designed to prolong the milk’s quality. Milk
Pak’s “Milk Packs” were very well-received and the brand soon became synonymous
with quality milk. Its first real competition came in the form of Haleeb, which
introduced distinctively blue tetra packs to the market in 1986.

Milk Pak, however, further grew in stature when Nestle used it to break into
Pakistan's marketplace. By 2006, the dairy milk category was growing at 20 percent
annually, and Milk Pak and Haleeb were well-entrenched brands with distinctive
colors and brand promises of providing high quality, natural and healthy milk.
Milk Pak was identified by its green and white packaging—the colors of the country
—and offered a brand backed with the strong equity of Nestle, coupled with its own
traditional heritage. Haleeb was recognized as the blue brand, and professed to
have the "naturally thickest" milk. With the market dominated by two strong,
familiar, and widely respected brands, the marketplace appeared completely
impervious to newcomers.

PRODUCT STRATEGY
“MILK COLLECTION”

Our proudest achievement is our internationally acclaimed development of the

Punjab's milk district.
Hundreds of thousands of small farmers live over an area of 100,000 square
kilometres in central Punjab. Of these farmers, most have only a few head of
buffalo – yet Pakistan is the world's fifth largest producer of milk.
Milk is very fragile in our hot climate, and distribution historically depended on
a network of suppliers and middlemen. Without refrigeration, the milk arrived in
towns already soured or adulterated with preservatives, such as vegetable oil or
caustic soda.
When Milkpak Ltd. began operations, such was the state of affairs that though the
milk was cleaned, pasteurised, homogenised and sterilised at the Milkpak factory
in Sheikhupura, its shelf-life in summer was, at most, four weeks. By contrast, in
Europe UHT milk had a shelf-life of six months.
Something had to be done. Milkpak immediately took measures to improve milk
quality and the collection system, and when Nestlé entered in 1988, these efforts
were stepped up.

THE NESTLE MIRACLE

Milkpak set up reception centres with cooling facilities where farmers and
dodhies, small-time milk merchants, could bring their wares.
It was a simple solution, but difficult in practice: importing the stainless steel
chilled containers required was prohibitively expensive. By 1988, the company
purchased 120 tons of milk a day from 26,000 farmers.
After acquiring a share in Milkpak Ltd in 1988, Nestlé immediately began investing
in milk cooling tanks. Between 1988 and 1992, 100 milk tanks were installed.
1992 onwards, with full support from the Nestlé headquarters in Switzerland,
reorganization of the milk collection operation and the provision of agricultural
technical assistance became top priorities.
The investment paid off. Within a decade, Nestlé's purchase of fresh milk had
quadrupled, and the number of small farmers selling milk to Nestlé tripled.

MILK COLLECTION SYSTEM

Follow the story of Nestlé's dairy products, from humble beginnings on tiny farms
in Sheikhupura district, all the way to your table!

Step 1
A small farmer in rural Sheikhupura district milks his buffalo twice a day and
takes about 4 litres to one of Nestlé's 500 Village Milk Collection Centres.

Step 2
At the Village Milk Collection Centre the farmer's milk is poured into aluminium
churns. The agent checks the milk's freshness and purity, and enters the quantity
into the farmer's logbook. He takes it to one of Nestlé's 1308 Secondary Reception
and Cooling Stations, about 2-4 kilometres away.

Step 3
The Secondary Reception Station has a large electrically powered cooling tank. A
milk inspector measures the fat content, the non-fat solids content, and the
milk's acidity. Once satisfied, he takes the milk to one of 27 Main Reception and
Cooling Stations.
Step 4
At the Main Reception and Cooling Stations the milk is poured into huge tanks and
is thoroughly checked for quality. The milk is dispatched to the factories.

Step 5
At the Sheikhupura and Kabirwala factories, the milk is processed and packed into
the familiar Nestlé cartons you can find in your grocery store. It is checked for
quality thrice before being released for sale. Some is processed into yoghurt,
powdered milk, or other dairy products.