Nestlé Food’s

Pakistan

Group Members:

Asad Arif F17-1306

Azeem Ullah F17-1387

Usman Munir F17-1386

Usama Gulzar F17-1228

Ghulam Ahmad F17-1444

Submitted to:
Sir Hashim Butt
Date:
Nov 21, 2019.
 LAHORE LEADS UNIVERSITY LAHORE

CONTENTS:
1- Introduction Page4

2- History Page4

3- Vision Page7

4- Mission Page7

5- Organizational Structures Page8

7-Product Strategy Page9

7.1-Products Page10
7.2-Product mix of Nestle Page10

8-Nestle Factories in Pakistan Page13

9-Marketing Orientation of Nestle Page14

9.1-Marketing Strategy Page15
9.2-Promotional Strategy Page15
9.3-Targeting Strategy Page15

10- Marketing mix of Nestle Page16

10.1- Product Page 16
10.2- Price Page 18
10.3- Place Page18
10.4- Promotion Page19
11-Developing an Integrated Marketing Mix Page19
 11.1-Developing Strategy for growth and Downsizing Page20

12-Macro-environment of Nestle Page21

13- Market analysis of Nestle Page 21

13.1- S.W.O.T Analysis Page21
13.1.1- Strengths Page22
13.1.2- Weaknesses Page22
13.1.3- Opportunities Page22
13.1.4- Threats Page23
13.2- P.E.S.T.L.E Analysis Page23
13.2.1- Political Factor Page24
13.2.1.1- Wars conflicts and Terrorism Page24
13.2.2- Economical Factor Page24
13.2.3- Social and Culture Analysis Page 24
13.2.4- Technological Analysis Page24
13.2.5- Legal Factor Page25
13.2.6- Environmental Factor Page25

14- Igor-Ansoff Matrix Page25

14.1- Marketing Development Page25

15-Problem Faced by Nestle Page26

16-Competitive Analysis or Competitors Analysis Page26

17-Conclusion Page26

18-Suggestions Page 26
 Introduction:
Nestlé Pakistan is proud of its commitment to excellence in product safety and
quality and to providing value and aims to be the leading Nutrition, Health and
Wellness Company. As a socially responsible corporate, we always focus on
environment friendly operations, ethical business practices and our responsibility
towards the communities.
Nestlé in Pakistan is operating since 1988 under a joint venture with Milk Pak ltd
and took over management in 1992.
The company’s strategy is guided by Nestlé’s Corporate Business Principles which
are in line with internationally accepted best practices and ethical performance
culture. Nestlé’s existing products grow through innovation and renovation while
maintaining a balance in geographic activities and product lines. Long-term
potential is never sacrificed for short-term performance. The Company’s priority is
to bring the best and most relevant products to people, wherever they are, whatever
their needs are, and for all age groups.
Nestlé Pakistan today is the leading Food & Beverages Company in Pakistan with
key focus on Nutrition, Health and Wellness and reaching the remotest of locations
throughout Pakistan to serve the consumers. Nestlé Pakistan also prides itself in
being the leaders in Nutrition, Health & Wellness. Ever since 1867, when Henri
Nestlé invented the first infant food, nutrition has been in our DNA. Today more
and more consumers mirror our emphasis on nutrition, as they realize that food
choices affect their health and quality of life.
Nestlé Pakistan operates in many ways but people, products and brands are the
main flag bearers of the Company’s image, and we continue to enhance the quality
of life of Pakistanis.

History:
T h e C o mp a n y f o r me d b y t h e 1 9 0 5 me r g e r w a s c a l l e d t h e Ne s t l é
a n d An g l o - S wi s s M i l k C o mp a n y. B y t h e e a r l y 1 9 0 0 s , t h e
C o mp a n y wa s o p e r a t i n g f a c t o r i e s i n t h e Un i t e d S t a t e s , B r i t a i n ,
G e r ma n y a n d S p a i n . I n 1 9 0 4 , N e s t l é a d d e d c h o c o la t e t o i t s r a n g e
o f f o o d p r o d u c t s a f t e r r e a c h i n g a n a g r e e me n t w i t h t h e S wi s s
G e n e r a l C h o c o l a t e C o mp a n y. C o nd e n s e d - mi l k e x po r t s i n c r e a s e d
r a p i d l y a s t h e C o mp a n y r e p l a c e d s a l e s a g e n t s wi t h l o c a l
s u b s i d i a r y c o mp a n i e s . I n 1 9 0 7 , t h e C o mp a n y b e g a n f u l l - s c a l e
ma n u f a c t u r i n g i n Au s t r a l i a , i t s s e c o n d - l a r g e s t e x p o r t ma r k e t .
Wa r e h o u s e s we r e b u i l t i n S i n g a p or e , Ho n g Ko n g , a n d B o mb a y t o
s u p p l y t h e r a p i d l y g r o wi n g As i a n ma r k e t s . M o s t p r o d u c t i on
f a c i l i t i e s r e ma i n e d i n Eu r o p e , h o we v e r , a n d t h e o n s e t o f
Wo r l d Wa r I b r o u g h t s e v e r e d i s r u p t i o n s . A c q u i r i n g r a w ma t e r i a l s
a n d d i s t r i b u t i n gp r o d u c t s b e c a me i n c r e a s i n g l y d i f f i c u l t . F r e s h -
mi l k s h o r t a g e s t h r o u g h o u t Eu r o p e f o r c e d f a c t o r i e s t o s e l l a l mo s t
all their supplies to meet the needs of l o c al
t o wn s . Ne v e r t h e l e s s , t h e wa r c r e a t e d t r e me n d o u s n e w d e ma n d f o r
d a i r y p r o d u c t s , l a r g e l y i n t h e f o r m o f g o v e r n me n t c o n t r a c t s . To
k e e p u p , Ne s t l é p u r c h a s e d s e v e r a l e x i s t i n g f a c t o r i e s i n t h e Un i t e d
S t a t e s . B y wa r ' s e n d , t h e C o mp a n y h a d 4 0 f a c t o r i e s , a n d i t s wo r l d
p r o d u c t i o n h a d mo r e t h a n d o u b l e d s i n c e 1 9 1 4 .
T h e c l o s e o f Wo r l d Wa r I I ma r k e d t h e b e g i n n i n g o f t h e mo st
d yn a mi c p h a s e o f Ne s t l é ' s h i s t o r y. Th r o u g h ou t t h i s p e r i o d ,
N e s t l é ' s g r o wt h w a s b a s e d o n i t s p o l i c y o f d i v e r s if yi n g wi t h i n t h e
f o o d s e c t o r t o me e t t h e n e e d s o f c o n s u me r s . Do z e n s o f n ew
p r o d u c t s we r e a d d e d a s g r o wt h w i t h i n t h e C o mp a n y a c c e l e r a t ed
a n d o u t s i d e c o mp a n i e s we r e a c q u i r e d . I n 1 9 4 7 , Ne s t l é me r g e d wi t h
A l i me n t a n a S . A. , t h e ma n u f a c tu r e r o f M a g g i se a s o n i n g s a n d
s o u p s , b e c o mi n g Ne s t l é Al i me n t An a C o mp a n y. T h e a c q u i s i t i on
o f C r o s s e & B l a c k w e l l , t h e B r i t i s h ma n u f a c t u r e r o f p r e s e r v e s a n d
canned foods, followed in 1960, as did the purchase of Findus
f r o z e n f o o d s ( 1 9 6 3 ) , Li b b y' s f r u i t ju i c e s ( 1 9 7 1 ) a n d S t o u f f e r ' s
f r o z e n f o o d s ( 1 9 7 3 ) .M e a n wh i l e ,
Nescafé
Continued its astonishing rise. From 1950 to 1959, sales of
instant coffee nearly tripled, and from 1960 to 1974, they
q u a d r u p l e d ..
1975-1981
A f t e r t h e a g r e e me n t wi t h L ’ O r e a l i n 1 9 7 4 , Ne s t l é ' s o v e r a l l
p o s i t i o n c h a n g e d r a p i d l y. F o r t h e f i r s t t i me s i n c e t h e 1 9 2 0 s , t h e
C o mp a n y' s e c o no mi c s i t u a t i o n de t e r i o r a t e d a s t h e p r i c e o f o i l
r o s e a n d g r o wt h i n t h e i n d u s t r i a l i z e d c o u n t r ie s s l o w e d . I n
addition, foreign exchange rates deteriorated with the French
f r a n c , d o l l a r , p o u n d s t e r l i n g , a n d ma r k a l l l o s i n g v a l u e r e l a t i v e to
t h e S wi s s f r a n c . F i n a l l y, b e t w e e n 1 9 7 5 a n d 1 9 7 7 , t h e p r i c e o f
c o f f e e b e a n s q u a d r u p l e d , a n d t h e p r i c e o f c o c o a t r i p l e d . As i n
1 9 2 1 , t h e C o mp a n y w a s f o r c e d t o r e s p o n d q u i c k l y t o a r a d i c a l l y
c h a n g e d ma r k e t p l a c e . N e s t l é ' s r a p i d g r o wt h i n t h e d e v e l o p i n g
w o r l d p a r t i a l l y o f f s e t a s l o wd o w n i n t h e C o mp a n y' s t r a d i t i o n al
ma r k e t s , b u t i t a l s o c a r r i e d wi t h i t t h e r i s k s a s s o c i a t e d wi th
u n s t a b l e p o l i t i ca l a n d e c o n o mi c c o n d i t i on s . T o ma i n t a i n a
b a l a n c e , Ne s t l é ma d e i t s s e c o n d v e n t u r e o u t s i d e t h e f o o d i n d u s t r y
b y a c q u i r i n g Al c o n La b o r a t o r i e s, I n c ., a U .S . ma n u f a c t u r e r o f
p h a r ma c e u t i c a l a n d o p h t h a l mi c p r o d u c t s . T a k i n g su c h a s t e p i n a
t i me o f i n c r e a s e d c o mp e t i t i o n a n d s h r i n k i n g p r o f i t ma r g i n s
r e q u i r e d b o l d n e ss a n d v i s i o n . Ev e n mo r e t h a n t h e L ’ O r e a l mo v e ,
A l c o n r e p r e s e n t e d a l e a p i n t o u n k n o wn wa t e r s f o r N e s t l é . B u t , as
G r o u p C h a i r ma n P i e r r e L e o t a r d - Vo g t n o t e d , " T o d a y w e f i n d
o u r s e l v e s wi t h a v e r y wi d e r a n g e o f a c t i v i t i e s , a l l o f wh i c h h a v e
o n e t h i n g i n c o mmo n : t h e y a ll c o n t r i b u t e t o s a t i s f yi n g t h e
r e q u i r e me n t s o f t h e h u ma n b o d y in v a r i o u s wa ys " .
1981-1995
U n d e r a n e w C h i e f Ex e c u t i v e Of f i c e r , He l mu t M a r c h e r , Ne s t l é
a p p r o a c h e d t h e 1 9 8 0 s wi t h a r e n e w e d f l e x i b i l i t y a n d d e t e r mi n a t i o n
t o e v o l v e . Th e C o mp a n y' s s t r a t e g y f o r t h i s p e r i o d wa s t wo f o l d :
i mp r o v e i t s f i n a n c i a l s i t u a t i o n t h r o u g h i n t e r n a l a d ju s t me n t s a n d
d i v e s t me n t s , and continue its policy of
s t r a t e g i c a c q u i s i t i o n s . Th u s , b e t we e n 1 9 8 0 a n d 1 9 8 4 , t h e C o mp a n y
d i v e s t e d a n u mb e r o f n o n - s t r a t e g i c o r u n p r o f i t a b l e b u s i n e s s e s . At
t h e s a me t i me , N e s t l é ma n a g e d t o p u t a n e n d t o a s e r i o u s
c o n t r o v e r s y o v e r i t s ma r k e t i n g o f i n f a n t f o r mu l a i n t h e Th i r d
Wo r l d . Th i s d e ba t e h a d l e d t o a b o yc o t t o f N e s t l é p r o d u c t s b y
c e r t a i n l a y a n d r e l i g i o u s o r g a n i z a t i o n s . Th i s i s s u e i s s t i l l a l i v e i n
s o me q u a r t e r s , b u t t h e r e i s n o l o n g e r a n y s i gn i f i c a n t b o yc o t t
a c t i v i t y.
I n 1 9 8 4 , Ne s t l é ' s i mp r o v e d b o t t om l i n e a l l o we d t h e C o mp a n y t o
l a u n c h a n e w r o u n d o f a c q u i s i t i o ns , i n c l u d i n g a p ub l i c o f f e r o f $ 3
b i l l i o n f o r t h e Ame r i c a n f o o d
1996-2002
T h e f i r s t h a l f o f t h e 1 9 9 0 s p r o v e d t o b e a f a v o r a b l e t i me f o r
N e s t l é : t r a d e b a r r i e r s c r u mb l e d a n d wo r l d e c o n o mi c ma r k e t s
d e v e l o p e d i n t o a s e r i e s o f mo r e o r l e s s i n t e g r a t e d t r a d i n g a r e a s .
T h e o p e n i n g o f C e n t r a l a n d Ea s t e r n Eu r o p e , a s we l l a s C h i n a , a n d
a g e n e r a l t r e n d t o wa r d s l i b e r a l i z a t i o n o f d i r e c t f o r e i g n
i n v e s t me n t wa s g o o d n e ws f o r a c o mp a n y w i t h i n t e r e s t s a s f a r -
f l u n g a n d d i v e r s e a s Ne s t l é . Wh i l e p r o g r e s s s i n c e t h e n h a s n o t
b e e n a s e n c o u r a g i n g , t h e o v e r a l l t r e n d s r e ma i n po s i t i v e . I n J u l y
2 0 0 0 , Ne s t l é l a u n c h e d a Gr o u p - wi d e i n i t i a t i v e c a l l e d G LO B E
( Gl o b a l B u s i n e s s Ex c e l l e n c e ) , a i me d a t h a r mo n i z i n g a nd
s i mp l i f yi n g b u s i n e s s p r o c e s s a r c h i t e c t u r e ; e n a b l i n g Ne s t l é t o
r e a l i z e t h e a d v a n t a g e s o f a g l o ba l l e a d e r wh i l e mi n i mi z i n g t h e
d r a wb a c k s o f s i z e . Th e r e we r e t w o ma jo r a c q u i s i t i o n s i n No r th
A me r i c a i n 2 0 02 : i n J u l y, Ne s t l é a n n o u n c e d t h a t t h e U. S . i c e
c r e a m b u s i n e s s w a s t o b e me r g e d i n t o Dr e ye r ' s , a n d i n Au g u s t , a
U S D 2 .6 b n a c q ui s i t i o n wa s a n n ou n c e d o f C h e f Ame r i c a , I n c ., a
l e a d i n g U .S . - b a s e d h a n d - h e l d f r o z e n f o o d p r o d u c t b u s i n e s s . Al so
i n 2 0 0 2 , t h e jo i n t v e n t u r e Da i r y P a r t n e r s A me r i c a s w a s s e t u p
w i t h F o n t e r r a ; a n d La b o r a t o r i e s i n n e r v e wa s s e t u p , a n o t h e r jo i n t
v e n t u r e , t h i s t i me wi t h L ’ Or e a l .
2003 +
T h e ye a r 2 0 0 3 s ta r t e d we l l wi t h t h e a c q u i s i t i o n o f M ö v e n p i c k I c e
C r e a m, e n h a n c i n g Ne s t l é ' s p o s i t io n a s o n e o f t he wo r l d ma r k e t
l e a d e r s i n t h i s p r o d u c t c a t e g o r y. Th e ye a r s t h a t f o l l o we d s a w
c o n s i s t e n t b u s i ne s s g r o wt h t h r o ug h i n n o v a t i o n a nd r e n o v a t i o n o f
t h e p r o d u c t s . I n 2 0 0 6 , J e n n y C r a ig , t h e U S A we i g h t M a n a g e me n t
C o mp a n y a n d Un c l e To b y’ s we r e a c q u i r e d a s we l l a s De l t a I c e
C r e a m. N e s t l é m a d e t h r e e s i g n i f i c a n t a c q u i s i t i o n s i n 2 0 0 7 . Th e
f i r s t wa s No v a r t i s M e d i c a l Nu t r i t i o n wh i c h p u t Ne s t l é i n a s t r o n g
n u mb e r t w o p o s i t i on g l o b a l l y f o r h e a l t h c a r e n u t r i t i o n. G e r b e r , t h e
i c o n i c US b a b y f o o d b r a n d wa s t he s e c o n d
A c q u i s i t i o n a n d t h e t h i r d w a s t h e S wi s s w a t e r c o mp a n y, S o u r c es
M i n é r e s He n n i e z S . A . Th e e n d o f 2 0 0 7 wa s ma r k e d b y a s t r a t e g i c
p a r t n e r s h i p wi th t h e B r u s s e l s - b a s e d l u x u r y c h o c o l a t e ma k e r
Pierre Marceline.

VISSION AND MISSION STATEMENTS:

VISION OF NESTLE:
We envision Nestlé Milk pack to grow in the shortest possible time into the
number one food company in Pakistan with the unique ability to meet the needs of
consumers of every age group from infancy to old age, for nutrition and pleasure,
through development of a large variety of food categories of the highest quality.
We envision the company to develop an extremely motivated and professionally
trained workforce, which would drive growth through innovation and
renovation.We aspire, as a respected corporate citizen, to continue playing our due
role in the social and environmental sectors of the country.

NESTLE MISSION STATEMENT:

Nestlé is dedicated to providing the best foods to people throughout their day,
throughout theirlives, throughout the world.
With our uniqueExperience of anticipating consumers’ needs andCreating
solutions, Nestlé contributes to your well-being and enhances your quality of life.
PRODUCT STRATEGY
Company Background Swiss Transnational food and beverage company Formed in
1905 by Henri Nestle 447 factories in 194 countries Listed No 1 in 2011 as the
world’s most profitable corporation Variety of products.Different products/brands
marketed by the company.Product Categories Brands Name Infant formula
Lactogen Hot Cereals Nestum Breakfast Cereals Koko Crunch, Honey Stars,
Cornflakes Health Fortified Drinks Milo Milk Powder Nespray, Klim, Everyday
Sweetened Condensed Milk Milkmaid, Teapot Instant Coffee Nescafe Noodles
Maggi Cold Sauces Maggi Chilli and Tomato sauce Chocolate Kit Kat, Smarties,
Nestle Crunch.
Brand Identity
• The brand itself plays an important role.
• First contact with customers - nutritious lifestyle.
• Nestlé’s logo was an important part of the company’s corporate identity.
• The 'nest' was a graphic translation of Henri Nestle's name.
• The familiar bird’s nest logo continues to be used on Nestlé products worldwide.
ProsperityCare Purity Goodness Colour of the Nestle logo : Blue.
Sources : Nestle internal records Product Categories Nestle Brands Competitors
Brands Market Leader Breakfast Cereals Nestle Corn Flakes, Koko Crunch
Kellogg’s Cornflakes and Frosties Nestle Corn Flakes Chocolates Kit Kat,
Smarties, Nestle Crunch Cadbury, M&M, and Snickers. Cadbury.
•2D view
•3D VIEW
Price Strategy For setting price, Internal Consideration- applying marketing mix
External Consideration- monopolistic competition market (Example: Crunch &
KitKat) So, the price of Chocbrick is set at RM3.00 for each.Using market
penetration pricing strategy to attract buyers because:- Higher price sensitive in
current market Low price makes a market growth Using promotional pricing
strategy by setting price below the list price By applying special event pricing and
loss leaders
• Nestle channel is known as strong due to good marketing and sales network
• Has its own distribution network
• Transport the Chocbrick at major regional sales offices, which are situated at
different cities
• Become available through the advertisement
• Focus on the inventory management in order to satisfy customer needs
Display in supermarket such as Giant and 99 Speedmart Low cost and provide self
service store Customer will bought frequently the convenience good Display in
convenience store such as 7-Eleven and KK Mart Small store located near
residential area that are open long hours 7 day a week Regularly introduce trade
discount and various tactics to keep the distribution motivated.Promotion Mix
Advertising Sales Promotion Public Relation Direct Marketing Personal
Selling.Advertising 1. Through Social Media Webpage Selected TV Channel
Radio Road Shows 2.Deliver information of Brands name Products.Why we are
using advertising as one of our promotion strategy???Able to introduce the
products to wide market Customer get know well about our products Brands
positioning in our customer’s.Sales Promotion A very good strategy for
introducing the new products Lower price compared to other competitors Get the
attention from the customer by offering the lower price.
Public Relation Example:Be a sponsor in an event that related to our brand or
product Through this way: We are able to create a good image to customers We are
able to create newsworthy information to the public.
Target Market- children, adolescents, adults and senior citizens Chocbricks
Design- yellow colour plastic cuboid shape container and polar bear on the first
outlook Market Penetration Strategy , RM3.00 each Retailer Channel- Offering at
low price - Can purchase at convenient way
i)Core Benefits breakfast ii)Actual Product Brand name: Nestle -Design: Cuboid
than sphere -Nutrition value iii)Augmented Product -Guarantee : refund -
Accessibility: easy to buy it at nearby stores.

PRODUCTS:
Most people know Nestle through their brands. Their portfolio covers practically
all food and beverage categories. Nestle has a wide range of product across the no
of market. With over 140 years of experience and expertise they take great pride in
bringing us the best products because happy, healthy consumers are important to
them. They develop their products keeping over preferences, taste and needs in
mind. Their products are carefully aligned to Pakistani taste and needs. They
always try hard to develop new products and improve existing ones, and servers
their consumers in a butter way.

PRODUCTS MIX OF NESTLE:

Nestle is a well-known company all over the world and Pakistan. The company
basically deal in four products as their logo says “Good Food Good Life” Their
major product line are

MILK PRODUCTS
i. Nestle Milk pack UHT Milk:
This product was launched in 1981. Backed by a very strong brand name,
aggressive marketing and distribution plan, consistent quality, and availability
throughout the year, it has become quality milk. In September 1999, Milk Pak
UHT milk was launched as Nestle Milk Pak UHT milk. It is available in 1000,
500 and 250 ml sizes.
ii. Milk pack Butter:
This product was launched in 1985 under the Milk Pak brand name. It has been
recently repackaged in a crisp white laminate, the design of which bears closed
resemblance to that of Milk pack UHT milk. This new package design allows
gaining strength from Nestle Milk pack UHT milk. It is available in 200 and
100 gm sizes.
 iii. Milk pack UHT Cream:
This product was launched in 1986 under Milk pack brand name. It is available
in 200 ml size.
iv. Nestle Everyday:
To meet the requirements of the tea-whitening segment, this product was
launched in 1992 on account of aggressive marketing. Focused distribution,
excellent consumer product quality, this brand has shown strong growth and
holds good promise for the future
iv. Nestle Nido:
Soon after it was introduced in the early 70’s as an imported products Nido full
cream milk powder became the market leader Local manufacturing of Nido
began in 1990, which has reinforced its position as the dominant player in the
full cream milk powder category.

CHOCOLATE DRINKS:
i. Milo powder:
This product was launched in 1994. It is available in 14,100 and 200 gm sizes.
It is strongly associated with a healthy life style and is an ideal drink for
growing children who need strength and energy.
ii. Milo RTD:
To cater for consumer convenience, Milo RTD (ready to drink) was launched
in 1 available in an attractive I80 ml slim pack. It is popular among all age
groups especially among the growing segment of nutrition conscious
consumers. It is an excellent substitute for cold drinks.

COFFEE:
i. Nescafe Classic:
It is one of the world's most popular coffee brands. Nescafe global campaign
"open up" was launched in Pakistan in October, introducing a new brand
framework and increased emphasis behind 225 and 500gm.

FRUIT DRINKS:
i. Frost:
It is a well-known brand launched in 1986 and has the largest market share.
Positioned as a cold drink and an alternate to cola drinks, its strength lies in the
convenience attached to its usage.
ii. Nestle Orange Juice:
The product was launched in July 1996. It is available in 180ml and I litre sizes. In
a market that is becoming increasingly conscious about nutrition and is displaying
preference for healthy drinks, Nestle Orange Juice has made very good inroads and
has a strong potential in the future.

CONFECTIONERY:
In view of the impressive potential for confectionery sales in the country. Nestle
Milkpak established an independent sales and distribution network for main cities
in 1996, it has grown into a nation-wide network. The initial product range
includes locally produced Polo Mint, Kitkat, Smarties, Lion Bar, and Fox's. Allen's
Toffo and Allen's Soothers. Both Toffo and Soothers are produced on a new
confectionery line-based on a new state-of-the-art technology that provides an
extremely flexible process for production of wide range of high and low boiled
candies. This will enable the company to introduce varieties of new sweet flavors
over the next few years.

WATER:
The launch of Nestle Pure Life in December 1998 was a truly historic event. This
marks the Nestle Pure Life's entry into the country's fast growing water market.t
the same time Pakistan became the first country where Nestle launched the new
brand. Nestle Pure Life is a premium water, produced to the highest standards of
safety and purity. It is ideally balanced with essential minerals It is available in two
convenient sizes of 0.S and 10 liters. Capitalizing on its strong brand recognition,
aggressive pricing and supported by a strong marketing campaign Nestle Pure Life
has made very strong inroads into the water market in Pakistan. Nestle PURE LIFE
is available around the globe today in Canada, USA, Mexico, Brazil. Argentina,
South Africa, Saudi Arabia, Jordan, Egypt, Lebanon, Turkey, Russia, Uzbekistan,
Pakistan, China, Thailand, and the Philippines. Launched on the North American
market in 2003, Nestlé PURE LIFE is destined to become the world's leading and
most widely distributed brand by 2010.

NESTLE FACTORIES IN PAKISTAN

Our products are manufactured in five facilities scattered around the country. From
Islamabad in the north, to Karachi in the south. Two state-of-the-art multipurpose
factories are located in the agricultural heartland of the Two Punjab, and the
remaining three are dedicated to producing our trusted brands of bottled water. As
citizens of Pakistan, we consider it our duty to make sure that our manufacturing
processes are clean, hygienic and safe. We are constantly working to reduce
emissions at our factories, reducing and treating wastewater, and making our
packaging environmentally friendly. Regular audits have confirmed that our
factories' environmental management meets the Nestlé interactional standard.
SHEIKHUPURA FACTORY
The factory commenced operations as part of Milkpak Ltd in 1981. At the time it
produced only UHT milk, but by 1988 had expanded to produce butter, cream and
ghee, as well as fruit drinks. Milk filling machine TBA-22 (most modem and
efficient and high speed equipment available in dairy industry) National
distribution center was also constructed in 2000 with capacity to store 8300 pallets.
KABIRWALA FACTORY
In 1990. Nestlé Milkpak acquired the Kabirwalafactorý. Located in Khanewal
district of the as a subsidiary. By 1997 it was a fully owned unit of Nestlé Pakistan
Ltd.
2000 has seen the commencement of Kabirwala Extension Project that would be
completed in April 2007 at a cost of about Rs.4.0 billion. The project has seen
expansion of milk processing capacity to triple its current size, both for powder
and liquid.
In 2005 Fresh milk capacity was increased from 676 to 800 tons per day, in 2007
an additional aw and packing and semi-finished product stored and a bigger
distribution Center, a stick pack filling machine and 1000 gr. Powder filling
machine will be added.
ISLAMABAD FACTORY:
AVA water factory Islamabad was acquired by Nestle Pakistan in 2001 and was
subsequently merged with it. Thereby becoming a fully owned unit of Nestle
Pakistan in 2003 The production capacity of the factory is approximately 8000
bottles per day.

MARKETING ORIENTATION OF
NESTLE
There are different types of business orientations:
PRODUCTION ORIENTATION
Brassington & Pettitt (2006:12-19) believe that production orientation emphasizes
on availability and affordability of the products and thus production oriented
companies concentrate on efficient production and distribution techniques. Jobber
(2001: 4) says that production oriented management believes in attaining
economies of scale as their primary goal by producing only a small range of
products or defining business by its production facilities. In production orientation
their key focus is on their current capabilities of production.
PRODUCT ORIENTATION
According to Adecocket al.(20 1 product orientation is concentrated on products
rather than needs and wants of customers. Companies following product
orientation are interested in the quality, design of products which have greater
value for money Brassington &Peit (2000:12 19) say that these companies assume
that the customers are interested in the products and that they are interested in the
quality.
SALES ORIENTATION
According to Brassington & Petit (2006:12-19) sales oriented organizations
believes products "are sold, not bought". They emphasize on personal selling and
other sales techniques, assuming that the consumers are reluctant to purchase.
Adcock say that sales orientation concentrates on promoting the products and that
this is effective only for short time period.
Marketing Orientation
Adcock (2001) says that market orientation occurs when the customers identify the
difference in a company and when all the benefits offered to the customers are
measured. According to Jobber (2001) marketing oriented companies focus on the
customer needs and for them the opportunities arise from the changing needs of the
customers or market.
MARKETING STRATEGY
Our product will include features that contains the combination of both health and
hygiene keeping in mind the individuals requirements in terms of taste. However
the marketing will be done considering the concept of mass personage.
Our product will be tailored to individual needs (desired taste) but promotion will
them collectively. Furthermore we will be following pull strategy and approach our
end users ourselves with the help of various promotional activities. In our case no
intermediary (whole sellers) is involved.

PRICE FIXATION STRATIGIES:

These are following objectives of nestle pure life regarding price fixation:
Profit Earning:
Profit earning is the main objective of every company but in case of nestle their
profit margin is low. Only a few amount of profit is collected from pure life water.
Customer satisfaction:
In nestle pure life price is not fixed by keeping in mind profit motive, only
customer satisfaction is kept in mind while fixing the prices.
PROMOTIONAL STRATEGY
Advertisement is a tool to introduce the product in the market. To increase sales
and build an image in the mind of consumer company advertise their product in
different ways, as for as Nestle pure life is concerned company use:
Television
Radio
News Paper
Bill Board
Hoarding etc.
Sometime company also makes free sampling, held stalls at different programs like
Health Mela.
Pure Life's communication strategy is weak as they follow emotional black
mailing. In advertising they show emotional feelings to their customers.
TARGETING STRATEGY
Nestle Pure Life comes in four different sizes. These four are targeting different
types of people and lifestyles.
This is the smallest size of Nestle Pure Life Water of 0.5L.This size is being
heavily used by the consumers in place of soft drink. University and Colleges are
also included in its target market of this size. But the product is used by everyone
in the society also. It is not only specified people that have been discussed above.
This is the second size of the Nestle Pure Life Water which is about 1.SL. This size
is being used in mostly meetings. You can say that any kind of organizational
meeting or any other social meeting, this product is being used.
This is the third size of the Nestle Pure Life which is used in mostly houses and
offices in the waiting areas (offices).
This is the fully household product and also using in executive rooms in offices
with the dispensers. This Nestle Pure Life Water Bottle is also very helpful in
many dispensers available in the market with good option.

MARKITING MIX OF NESTLE:

The Marketing mix of Nestle discusses the 4P’s of one of the strongest FMCG
companies of the world. The Nestle marketing mix shows Nestle has a
strong product line which boosts its marketing mix. Below are the products, price,
placement and promotions of Nestle.
Products in the Marketing mix of Nestle

There are 4 different strategic business units within Nestle which are used to
manage various food products. Beverages – One of the most known coffee
brands Nescafe, belongs to the house of Nestle and is one of the cash cows for
Nestle. However, it is not the biggest cash cow. Nestle has a worldwide
distribution and has many different variants. Looking at India, Nestle has
also launched Nestea. Milk and Milk products – Nestle everyday, Nestle slim and
Nestle Milk maid are some of the milk and milk based products from the house of
Nestle.

Prepared dishes and cooking aides – Nestle has a third category of

products which comes into prepared dishes and cooking aides. The major cash cow
of Nestle lies in this segment, which is Maggi Noodles. Probably one of the most
widely sold ready to cook noodle brands is Maggi. Maggi has a fantastic taste and
quality. Thus, it was not a surprise, that Nestle expanded the Maggi brand to create
an umbrella of different products like Maggi pasta, Maggi sauce, Maggi cubes etc.
The maggi range contributes vastly to the bottom line of Nestle.

Chocolates – Nestle has some popular chocolate products, most popular

being Nestle Kitkat, Munch, Milky bar, Eclairs and Polo. The newly introduced
Alpino is targeting the gifting segment in response to various chocolates like Dairy
milk and Bournville by Cadbury. The chocolates segment of Nestle is a star, where
the competition is high and the expense is high but at the same time the market size
is huge as well.As we can see, two major brands of Nestle are a very high
contributor to its Brand equity – Nescafe and Maggi. These are two brands sold
across India in small as well as big shops and super markets. There have been
many competitors for these products, like Bru for Nescafe and Top ramen
and Sunfeast Yippie against maggi.

The appreciable factor in Nestle is that quality maintenance of products is upto

mark and there are hardly any complaints about Nestles products in the market.
This is a major achievement for a company which relies majorly on food products.
Marketing mix of Nestle :
The Marketing mix of Nestle discusses the 4P’s of one of the strongest FMCG
companies of the world. The Nestle marketing mix shows Nestle has a
strong product line which boosts its marketing mix. Below are the products,
price, placement and promotions of Nestle.

 Products in the Marketing mix of

Nestle
There are 4 different strategic business units within Nestle which are used to
manage various food products.

Beverages – One of the most known coffee brands Nescafe, belongs to the
house of Nestle and is one of the cash cows for Nestle. However, it is not the
biggest cash cow. Nestle has a worldwide distribution and has many different
variants. Looking at India, Nestle has also launched Nestea.

Milk and Milk products – Nestle everyday, Nestle slim and Nestle Milk maid
are some of the milk and milk based products from the house of Nestle.

Prepared dishes and cooking aides – Nestle has a third category of

products which comes into prepared dishes and cooking aides. The major cash
cow of Nestle lies in this segment, which is Maggi Noodles. Probably one of the
most widely sold ready to cook noodle brands is Maggi. Maggi has a fantastic
taste and quality. Thus, it was not a surprise, that Nestle expanded the
Maggi brand to create an umbrella of different products like Maggi pasta,
Maggi sauce, Maggi cubes etc. The maggi range contributes vastly to the
bottom line of Nestle.

Chocolates – Nestle has some popular chocolate products, most popular

being Nestle Kitkat, Munch, Milky bar, Eclairs and Polo. The newly introduced
Alpino is targeting the gifting segment in response to various chocolates
like Dairy milk and Bournville by Cadbury. The chocolates segment of Nestle is
a star, where the competition is high and the expense is high but at the same
time the market size is huge as well.
As we can see, two major brands of Nestle are a very high contributor to its
Brand equity – Nescafe and Maggi. These are two brands sold across India in
small as well as big shops and super markets. There have been
many competitors for these products, like Bru for Nescafe and Top ramen
and Sunfeast Yippie against maggi.

The appreciable factor in Nestle is that quality maintenance of products is upto

mark and there are hardly any complaints about Nestles products in the market.
This is a major achievement for a company which relies majorly on food
products.

 Price in the Marketing mix of Nestle:

The price is dependent on the market of each individual products. For example,
Nescafe and Maggi being the clear leaders are priced with higher margins for the
company as compared to competition. This is because the product quality is good
enough and a bit of skimming price will not cause the customer to switch brands.

The strength of pricing for Nestle comes from its packaging or consumption based
pricing. For Nescafe as well as Maggi, Nestle offers a lot of sizes and package
options. In supermarkets, you can even find a 16 packet maggi whereas in small
retail shops, you can find 5 rsmaggi.

Thus, with the variety available, customer can make his own choice based on his
consumption. In other products like Kitkat and Munch, due to tough competition
from other companies, Nestle offers competitive pricing. You will find that nestle
will be similar priced to many of Cadbury’s Products in the chocolate segment.

 Place in the Marketing mix of Nestle:

Nestle follows the FMCG strategy of distribution which involves breaking the
bulk. The typical distribution strategy of Nestle is as follows.

These are the two different forms of distribution which Nestle has. It is typical of
any FMCG company. However, the Nestle channel is known to be strong with a
good marketing and sales network for channel distribution.
On top of it, Nestle regularly introduces trade discounts and various tactics to keep
the channel motivated. The major challenge is in the distribution of Maggi which is
the most in-demand product along with Nescafe. Due to these two products, Nestle
is able to drive other products in the market as well. Thus, on purchase of one
weak product, the distributor might get a discount on the stronger product or vice
versa.

The challenge for Nestle is in the chocolate segment where it faces stiff
competition from Cadbury and hence selling the chocolates becomes difficult.
Kitkat might have its own brand positioning, but it is not better than Dairy milk.
Thus, converting retailers to sell Nestle instead of Cadbury is the toughest task for
Nestle. This is converted mainly through promotions

 Promotions in the Marketing mix of

Nestle:
One of the most widely known tunes is the Nescafe tune. It was one of the best
advertising campaigns and was launched at least 2 decades back. However, that
campaign brought Nescafe strongly in the market.On the other hand, Nestle’s
brand was pushed by the excellent product quality of Maggi and the witty and
innovative campaigns of Maggi. Where Nescafe focuses on value and the good
things in life, Maggi focuses on moments you had with your Maggi. The recent
campaign was completely focused on your maggi story, where people had to come
out with various innovative ways that they had their maggi.

Promotions for other products too is done smartly. Kitkat focuses on “Take a
break” and has done some good marketing for the same. Kitkats website too is very
innoative and shows nothing but asks the visitor to take a break and have a Kitkat.
The major push expected of a FMCG company is in sales promotions at the ground
level. This is where Nestle really rocks. Nestle focuses on its strength which is
Maggi, Nescafe and Kitkat which are the most promoted brands in the market on
ground level.

Besides this, Nestle regularly uses TVC’s and ATL marketing. It is also present
online through some smart creative. Overall, Nestle is a brand which has strong
products as well as strong marketing, and hence the brand has a very high brand
recall value.We hope that Nestle keeps bringing in good products and keeps
maintaining the quality of the products it already has.

DEVELOPING AN INTEGRATED
MARKTING MIX
Personal Selling

A direct Vendor Selling Activity was coordinated and carried out during the
summer months of June, July, and August 1999 in Lahore. A team of vendors, clad
in branded T-shirts, caps and jackets, sold chilled 0.5 liter bottles to travelling
customers on all major intersections. The brand got great mileage out of this
innovative idea of personal selling in terms of brand awareness trial, image as well
as real sales.

Publicity
Nestle Pure Life was launched on 14 December, 1998 in Karachi with a huge
enthusiasm and positive response shown by the locals. The successful story of its
launch was printed in all the local newspapers the next day. This greatly helped in
creating awareness brans and gave its introduction a good start.
Sales Promotion
Specific promotions of Nestle Pure Life were arranged in some of the key outlets
of Lahore. Elaborate extensively used to promote sales. On a 12-bottlc purchase of
1.5 ml, one 1.5 ml bottle was offered free to consumers Similarly on a 6-bottle
purchase of 1 5 ml, one 0.5 ml bottle was offered free. Regarding trade promotion,
the retailer was also given an additional discount of 4 % during this sales
promotion. Not only did the sales of Nestle Pure Life grow tremendously during
the promotion, these continued at a higher pace even after it was over shelf space
was acquired for product display and specially designed POS material was
over.Public Relations
As far as the public relations are concerned, the organization releases an annual
report which includes the company's financial statements along with the sales of all
product categories. The annual report is mainly aimed at the stockholders.
However, another very important form of public relations are the newsletters and
bi-monthly magazines issued by the organization. A huge amount of information is
found in these regarding the products and their promotion.

Developing Strategies for Growth and

Downsizing
Market Penetration
Market penetration is the process of increasing its customer base in the existing
market by over the customer base of its competitors for further growth by means of
advertisements, promotion, price cutting, differentiation and seeking new
segments.
Product Development
Product development involves the development of new product ranges for an
already existing market for further growth. One way of product development is
replacing the old product with a newer version. Another means of achieving this is
to expand its product line thereby providing more choices to the customers.
Nestle has opened a global Research and Development Centre in January 2010 for
developing a new generation of Cereal based snacks and Biscuits.

Market Development
Market development entails the promotion of new uses of existing products to new
customers or marketing of existing products (and their current uses) to new market
segments".
Nestle has launched the Jenny Craig weight management programmer which is an
existing business for the past 10 years in the United States, Australia, Canada and
New Zealand to the new market in France in March 2010.
Diversification
Diversification can be achieved "either with related products and markets or
unrelated products at are totally unconnected with the existing products and
markets”
Nest 1&eacute:'s Product Diversification is clearly evident from its
productportfolio where they have pet foods which are different from theother
products.

Macro environment of Nestle

PESTLE analysis is a powerful tools to visualize your external surroundings,
which enables you to understand the external factors such as Political, Economical,
Social, technological, Legal & environmental affecting your business. So for
understanding Nestlé’s position in the market & to visualize the Nestlé’s position
among its competitor Pestle analysis is the best technique to understand the
external force.

SWOT ANALYSIS:
SWOT Analysis is a strategic planning method used to evaluate the
Strengths,Weaknesses/Limitations, Opportunities, and Threats involved in a
project or in a businessventure.SWOT analysis groups key pieces of information
into two main categories:
Internal factors
The strengths and weaknesses internal to the organization.
External factors
The opportunities and threats presented by the external environment to the
organization.
Nestle Pakistan and SWOT Analysis
Internal Factors:
Strength:
 Brand Image.
 Marketing strategies established by the company are innovative.
 Financial, marketing and sales strategies are formulated by gauging the
periodic researchcarried out to judge market trends.
  It is a large scale organization, with abundant funds and has the capability of
acquiring weaker firms by throwing them out of competition.
 Growing Sales and profits.
 Major shareholder in the food industry of Pakistan.
 Aggressive Marketing.
 Efficient Distribution networks throughout the country.
 Quality Products.
 Environment Friendly.
 Skilled labor.
 Educated staff.
 Large number of offerings.
 Pre purchase virtual display.
 Good background of the company.
 Easy to approach outlets.
 Strong supply chain network
 Strong research and development department.
Weaknesses:
 The target market of Nestle products is upper middle and high class because
lower middleand poor class cannot afford to buy Nestle products due to its
premium price compare toother companies like Shezan etc.
 It is a main weakness of Nestle products that there are different companies
which providesubstitutes of Nestle products but the name of Nestle products
is always stand in the lastbecause of low advertising and marketing.

External Factors:
Opportunities:
 Nestle have opportunity to expand their product line like tea etc.
 Company can open separate stores for eliminating retailers.
 Integration of new acquisitions in growth markets.
 Growth in international & emerging markets.
 Transition to a "Nutrition and well-being" company.
 Continuous growth in the Pakistan coffee market.
 Ethical business activities and support in community.
 Nestle can make itself as social company.
  Fair Trade agreements for cocoa and other products produced in third
world countries.
 In today's health conscious societies, they can introduce more health-based
products, and because they are a market leader, they would likely be more
successful.
 It should regularly indulge with candy and chocolates.

Threats:
 Price fluctuations due to rupee devaluation as raw material are imported.
The uncertainty of economic conditions poses a great threat as the major
funds invested in the country come from outside Pakistan.
 The present economic crisis in the world, led to the withdrawal of foreign
management from the company and the investment has come to a halt.
 Competition with Nestlé’s owns smuggled brands.
 Effect of Seasonality’s upon sales.
 Imported raw material, in some of the company’s products.
 Major Player may enter target market Legal and ethical issues.
 Market segment growth could attract new entrants.
 Economic slowdown can reduce demand.
 Main competitors Shezan, Olfrut, Maza and Haleeb are main threat for
Nestle juices specially the Shezan is growing very fast.
 Inflation is getting higher and higher so the purchasing power of the people
is decreasing day by day.
 Taste of consumer has already developed which is hard to change.

P.E.S.T.E.L ANALYSIS:
Nestle is a Swiss based corporation emerged as food and drink enterprise. Its head
quarters are in Vevey, Vaud, Switzerland. Nestle has been one of the biggest
companies of the world in terms of revenue and other measures. Fortune Global
500 ranked Nestle on 11th positioning 2014, while Forbes Global 2000 list public
companies gave Nestle 33rd rank in the world. Production lines of Nestle
manufacture medicated food, baby food, water containers, breakfast cereals, tea,
coffee, bakery products, dairy items, ice cream, freeze food, snacks and also pet
animal food. Nestle operates 447 production units, serving in 194 countries and
hired almost 339,000 employees.Nestle was established in 1905 resulted by the
merger of the Anglo-Swiss Milk Company. With the support of all these business
operations Nestle generated revenue of $88.8 billion in 2015.
Food industry demands a lot of efforts to penetrate exactly in the targeted
population. The pestle analysis of entire business environment of Nestle will give
the hints to improve the operations on right time, at right place with right direction.
Pestle analysis can give more result oriented opportunities to Nestle for the future
business growth along with sustainable profits.

Political Factors:
Nestle serves in several countries. The rules and regulations set by the government
are different in different regions. Nestle should focus on these political dynamics
like taxation, import export excise duties, government permission to enter in to the
target segment and also to introduce hygiene products allowed by the regulated
bodies. Moreover in the contemporary trends keeping in view the government
stability, Nestle should consider and recognize all the related risks that could be
involved. Nestle should also consider the changing global regulations which are
yet to adopt by the company. Albeit nestle is such an organization which in real
sense promote the government health policies by maintain the quality standards
and rules and regulations.

Economic Factors:
Different countries have different level of development. Economy of countries
differs everywhere. So Nestle has to set different economic policies for different
targeted segments. The price of the product is an important decision to take while
strategizing the economic policies according the inflation rate and the buying
power of the segments. Nestle company should made an analysis report on
frequent basis to get the knowledge of the inflation rates and different income
levels. Nestle is contributing a lot in promoting the economic worth of farmers by
producing the products at a local level for the satisfaction of the consumer.

Social Factors:
The shared thoughts and beliefs of the customers influence the business operations.
The culture, life style, norms and values force Nestle to deliver the specific product
to the right segment. Nestle so far has considered the social perspective well. The
company has well understood the concept that consumers changing attitude has
immense importance. People are now very much prone to the healthy life style.
Nestle has made a good reputation of understanding and evaluating the consumers
behavior and the related dynamics. Nestle is a global brand but the product has
been produced locally in order to sustain the quality. Adherence to the strong
values and principals has always been the priority of the company that assists in
building the trust on the consumers.

Technological Factors:
Technology gives many opportunities for the development of new products or
improvement of existing ones. New techniques of marketing such as internet and e-
commerce are important to focus in this modern era. Therefore Nestle uses
technology in several business operations like to maintain the databases with the
help of software. The rampant use of social media has narrowed the gap between
the direct interaction of consumer and the company. Nestle should follow such a
maxim that accelerate innovation with the help of technological advancements.
Nestle is already using the state of the art technology for the production of various
products, they are meeting the global standards by installing the contemporary
plants.

Legal Factors:
Legal factors involve the legal environment of a company and its influence on the
operation to meet the demand and minimize the cost. For instance, Nestle has to
follow the health and safety laws for their employees and also to produce hygiene
products for the customers. Nestle need to focus on these too while operating in
different regions of the world.

Environmental Factors:
Today the world is more conscious to have clean environment. Nestle need to
focus on these rules and regulations also to produce healthy food with
environmental friendly operations. Several countries set different rules, so to
increase the acceptance of the products by the targeted segment the rules are
significant to follow. Nestle has also been taking into account the considerable
attention towards the social contribution. The other related concerns are the realm
of recycling and the issues pertaining to the packing.
Igor-Ansoff Of Nestle:
Marketing Development:
Nestle has won their consumer’s trust through good quality & purity in their
products. Theyknow that consumers would never compromise on qualitySell more
of the same products or services in new markets. These strategies often try toattract
clients away from competitors or introduce existing products in foreign markets
or introduce new brand names in a market, such as when we sell the same product
for another purpose. In this strategy small modifications may be necessary and
should beware of culturaldifferences.
For Example:
Breakfast cereals are the example for market development. They introduced
different typesof cereals in market like Naquin is for Kids and Cheerios cereal are
for family.
PROBLEMS FACED BY NESTLE
Nestle facing the problem that is regarding the quality of milk. It is being perceive
that infant or child belonging to poor family who use low quantity of milk then
required in daily use are getting affected.
It is hard to agree the customer to switch to pack milk because of taste which is
hurdle for further expansion.
Competitive Analysis or competitors
Nestle P have many Pakistan have many competitors in market to these
competitors are: HaleebLtd.En hurdles in order to be the best & deli cut their
market Recapture the market they Ltd. Engro food Lid Shezan Ltd. Others They
have to face many hurdles in order to be the best & deliver because they cutthroat
competition with all of the competitors.

CONCLUSION
 Nestle is a market leader due to different reasons:
 Its price is high against its competitors but it matches its quality with its
competitors.
 Nestle is using its brand name to promote it product & it's very popular as
compared to its competitors.
 Its packaging is good.
 We can easily find Nestle from any retailer shop.
 It has always maintained the quality of its products.
 Despite of all the facts, there's need to maintain the condition of office and
on the security.
 Behavior of employees is not professional and every department should treat
equally.

SUGGESTIONS:
 Nestle milk pack should concentrate on all age groups (by showing its
benefits) instead of concentrating just on child growth.
 They should try to create strong brand loyalty among customers.
 They should keep in mind the competing environment while designing their
strategies.
 They should concentrate on customer retention.
 They should improve their customer service.
 They should try to exploit the loopholes of their competitor's product.
 Long term agreement to be signed with government departments.
 A small part of the budget should be spent for the management of the office.
For a company that will turn one hundred in a decade, Nestle has almost tried all of
the strategies there can be. Nestle company has expanded internationally, helped
countries’ economies grow, be environmentally conscious and create joint ventures
with other companies in which enhanced Nestlé’s and these companies’
performance positively. Followed are a couple of recommendations in which might
enhance their performance which are:
 Avoid actions that are bound to fail
Even though there is no way that someone can know the future, but a good
management team should be able to extrapolate if a plan they have might back fire
such as the scandalous event resulting from their oil practices, for cosmetics,
activities mentioned earlier. They should’ve expected that dealing with such
activities might result in leakage and that they should’ve taken precautions before
head.
 Invest on R&D
Nestle should concentrate on that in order to come up with new products. Since the
company started out to serve infants in need for nutrition, Nestle should enhance
and find way to enrich their product with substances and vitamins that will provide
children their daily needs of calcium and even mothers. Because they should start
from mothers’ health in order to provide infants’ health. Especially now when
children suffer diabetes amongst other things, they need more care than before.
 Joint ventures
Nestle should carry on with their partnership activities that will increase their
competitive advantage more. However, they shouldn’t venture their business with
companies that can’t sustain the pressure of the market and in which waver under
the scrutiny of competitors. They should choose qualified companies and
companies that show promising performance. Even though the future can’t be told
by looking at numbers and financial performance, companies should extrapolate
what might happen and look at all the angles of matters in both ways, positively or
negatively.