Strategic Marketing Management

Final Project

Nestle Cheese

Submitted To:

Mr.Mobin Ul Haque

Submitted By:

Waqas Afzal 094532043

Abdullah Saeed 094532023

Rehman Siddique 094532045

Ali Shaheen 094532046

Section “A”

Submission Date:

25-01-2010

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Acknowledgement

First of all we are thankful to Allah Almighty for bestowing us with the opportunity to

study in such a prestigious university and reap the prospects of learning from such

knowledgeable faculty.

Justice to my work would not have been done without acknowledging sincere and

heartiest gratitude to our resource person, Mr.Mobin ul Haque for guiding us in the related work,

finding time from their busy schedules and helping us.

We also admire each other for putting our best effort as a team in completing the project

and helping eachother in the time of distress. We also want to thanks our friends and colleagues

who supported us played a pivotal role in completion of this work.

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Preface

The final project of Strategic Marketing Management is based on the idea of launching a

new product in the local market of Pakistan. After the joint consensus we have reached to the

idea of launching Nestlé Cheese in Pakistan which is not in the Pakistani market till date. For the

launching of Nestlé Cheese in the local market we have to apply all the basic concepts of

marketing and strategic marketing.

The reason for selecting the Nestlé Cheese to be launched in the Pakistan is that there is

currently only three local brands that are working on the same product and among them are the

brands like Haleeb, Nurpur and Adams. All these brands are also competing with Nestlé in the

dairy industry. The current competition will change as soon as we will bring a Multinational food

manufacturer in the market to compete in the cheese sector. We believe that Nestlé is being

backed up with the state of the art manufacturing equipment and the years of expertise which

will be the key strength along with the brand name itself” Nestlé”.

In order to get the desired results by launching the Nestlé Cheese in the market we need

to put all the marketing tools and technique in a shape to get our work done by launching the

Nestlé cheese successfully in the local market.

We are applying all the marketing tools like Porter Analysis on the industry to check the

attractiveness of the industry and then make a Porter Generic Model as well. We are also

including STP in order to get the clear idea of the market and the customers in order to make our

new launch successful. In order to see where to place our product in the market we are also

making a Group Mapping along with the Perceptual Mapping of Nestlé Cheese. We are also

working on different matrices for getting the better insight of what to do for making our product

successful. We are also working on the P’s of marketing to understand the different aspects of

our product. We are also working on the SWOT and the Product Mix of Nestlé Cheese.

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Nestlé at a Glance

Ever since Nestlé was established, we have been committed to nurturing people worldwide.

Today, as the world's leading Food and Beverages Company, and leaders in health and wellness,

we try to cater to all your family's nutritional needs, no matter where in the world you live.

Our 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, we have expanded around the world and developed a range of

products designed to suit every taste, need and cultural preference. Our distinctive seal is

recognized everywhere as a guarantee of quality and healthfulness.

Nutrition, quality and convenience remain the keystones of our products and even as we confront

the new century's challenges, we feel it is our duty to adapt to the changing needs of our

consumers.

Our responsibility does not simply lie in perfecting the products we develop at our R&D centers

spanning four continents, but the role our products play in making lives better - both for our

consumers and for communities in the countries we serve.

Thus, along with old favorites such as KITKAT chocolates and NESCAFÉ, the world's most

popular coffee, we keep introducing new, exciting options worldwide.

Understanding that people in every country have different tastes and needs, we have developed a

range of food and lifestyle products. In India consumers enjoy healthy and convenient MAGGI

Noodles Atta Noodles, in Pakistan you can find NESTLÉ Raita and in China, flavored water is

strengthened with Prebio1; dietary fiber and traditional Chinese ingredients such as Aloe Vera

and Chrysanthemum.

Our popularity has come not just from acquisition and corporate expansion, but also from a care for the ever-evolving

needs of customers at every point in their lives.

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,

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nutrition and convenience.

Though headquartered in Vevey, Switzerland, we now have 487 factories dotted around the

globe, employing over 250,000 people in 86 countries. Our products are available in almost

every country, and in 2005 our global sales reached $73 billion.

Our operations are spread across three global zones covering Europe, the Americas, Asia,

Oceania and Africa. Recognizing that every region has its special needs, the three zones operate

locally, but are united by a common vision and priorities. The voices of even the smallest local

markets are heard at our headquarters in Vevey, Switzerland.

Our immense popularity comes from our efforts to develop products that give quality and

nutritional benefits at low prices, even in the most remote regions.

We distribute them using local means; in Madagascar, for instance, backpacker salesmen sold

over 12 million MAGGI tablets within six months, an approach that was duplicated in Pakistan

and Mozambique.

Our consumers know that they can rely on us to be there when we are needed.

Nestlé has been serving Pakistani consumers since 1988, when our parent company, the

Switzerland-based Nestlé SA, first acquired a share in Milkpak Ltd.

Today we 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 we operate.

We at Nestlé Pakistan ensure that our products are made available to consumers wherever in the

country they might be. Convenience is at the heart of the Nestlé philosophy, and our aim is to

bring products to people's doorsteps.

In line with our parent company's global philosophy, we are proud of our commitment to

excellence in product safety, quality, and value. Our products cater to human needs, and we are

active in the communities we serve.

From spreading awareness about nutrition and wellness to digging wells in the Thar Desert and

succoring earthquake victims, we are committed to serving our 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, our consumer services team stands ready to listen

to your concerns and provide answers about our products and guidance on matters of health and

wellness.

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Global Milestone:

1866-1880

Henri Nestlé, a Swiss pharmacist, begins experimenting with cow's milk, wheat flour and sugar

to develop an alternative for infants who cannot be breastfed. His ultimate goal is to help reduce

infant mortality from malnutrition. Eventually, he develops Farine Lactée Henri Nestlé, which is

sold under his own coat of arms. This remains Nestlé's distinctive brand even today. After the

formula saves a child's life, people swiftly recognize its value, and soon Farine Lactée Nestlé is

available across Europe.

1901-1910

In 1904, Nestlé reaches an agreement with the Swiss General Chocolate Company & adds

chocolate to its range, embarking on the path to becoming a global leader in confectionary. The

next year, the long rivalry with a competitor comes to an end as the two merge to become the

Nestlé & Anglo-Swiss Milk Company.

1911-1920

As World War I sweeps across Europe, the supply of raw materials and distribution of finished

products are disrupted. Nevertheless the demand for dairy products grows, and Nestlé's

production doubles.

1921-1930

As the war ends, government contracts dry up and fresh milk becomes available to consumers.

With decreased demand for long-life milk, Nestlé records its first, and only, loss.Through the

1920’s Nestlé expands its range. In 1930, the Brazilian Coffee Institute approaches Nestlé for

help in reducing its vast coffee surplus, and Nestlé embarks upon the eight years of research that

will produce NESCAFÉ®.

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1931-1940

In the interwar years, Nestlé expands its range of baby foods and milk products, adding Nestlé

MILO®, a chocolate flavored milk enhancer, to the range. In 1938, after years of R&D,

NESCAFÉ® is introduced and revolutionizes coffee drinking the world over.

1941-1950

When the United States enters the war, NESCAFÉ® becomes a favorite amongst American

servicemen. By 1943 annual production hits one million cases of NESCAFÉ®, and at the end of

the war, Nestlé finds itself a worldwide coffee concern. In 1944, NESTEA® complement the

NESCAFÉ® range. In 1947, two years after the war ends, the popular MAGGI® brand joins the

Nestlé family, and cements its place in the convenience food sector.

1951-1960

After the war ends, Nestlé sees astonishing growth as dozens of new products are added and

sales soar. CROSSE & BLACKWELL, a British manufacturer of preserves and canned foods, is

a prominent acquisition.

1961-1970

Nestlé's incredible growth continues. Acquisitions are stepped up as food and water companies

join the Nestlé family, including FINDUS frozen foods in 1963.Meanwhile, NESCAFÉ®’s

popularity shows no sign of abating as its sales quadruple between 1960 and 1965. In 1966, the

development of freeze-drying leads to the introduction of TASTER'S CHOICE® instant coffee.

1971-1980

Nestlé diversifies outside the food industry. In 1974, it acquires a share in one of the world's

leading cosmetics companies, L’OREAL. During this decade the price of coffee beans

quadruples, traditional markets slow down, and activities in the developing world bring new

risks. In 1977, Nestlé again ventures outside the food industry and acquires ALCON

Laboratories, manufacturers of vision products.

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1981-1990

Nestlé divested a number of businesses1980 / 1984. In 1984, Nestlé's improved bottom line

allowed the Company to launch a new round of acquisitions, the most important being American

food giant Carnation.

1991-2001

Trade barriers crumble and new markets in Eastern Europe and China open, creating a favorable

atmosphere for a company with Nestlé's diverse interests.

Bottled water is recognized as a major growth area, and the company takes steps to become a

world leader in the trade. It buys two leading brands of water: PERRIER® and SAN

PELLEGRINO®.

The company's first multi-site brand of water, NESTLÉ® PURE LIFE....., is launched in

Pakistan in 1998, and soon spreads to 21 countries. Its place in the pet food industry is

established with the 1998 acquisition of SPILLERS® Petfoods (UK).

In 2000, Nestlé acquires POWERBAR®, and consolidates its place in the performance nutrition

segment.

2001-Present

As new millennium dawns, Nestlé is the undisputed leader in the food industry, with nearly 500

factories globally, and sales exceeding CHF 81 billion. It launches a worldwide initiative called

GLOBE, intended to harmonies and streamline its business processes. In 2002 the PERRIER

VITTEL water business is renamed NESTLÉ WATERS. Nestlé continues its strategy of

strengthening growth areas such as ice cream by buying MÖVENPICK and DREYER'S Grand

Ice Cream. It ultimately takes full ownership of DREYER'S, thus becoming the world's biggest

ice cream maker in 2006.In 2005, Nestlé reaffirms its commitment to research and nutrition by

establishing NESTLÉ NUTRITION, a standalone entity to develop the company's health,

nutrition and wellness strategy. It develops science-based nutrition products, designed to

improve quality of life for people with specific nutritional needs.

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Corporate Social Responsibility:

Our presence in the community is not restricted to making Nestlé products available to

consumers; it brings with it a responsibility to those around us.

In China and Pakistan we provide animal husbandry assistance to thousands of farmers. In Brazil

our food education programme has trained hundreds of volunteers to teach families about

nutrition, health and hygiene.

And in India, we finance and oversee the provision of clean water at village schools near our

factories, benefiting some 20,000 children.

MOST Analysis

Mission Statement:

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“Nestlé is dedicated to providing the best foods to people throughout their day, throughout

their lives, throughout the world. With our unique experience of anticipating consumers’

needs and creating solutions, Nestlé contributes to your well-being and enhances your quality

of life.”

Vision Statement:

We envision the company to develop an extremely motivated and professionally trained

workforce, which would drive growth through innovation and renovation.

Objective:

Company’s objective is to be the world’s largest and best branded food manufacturer while

insuring that nestle name is synonymous with the products of the highest quality.

Its chief objectives are:

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• To build mutual trust with consumers, governmental authorities and business partners.

• To ensure continuous improvement of nestles environmental performance.

• Conservation of natural resources and minimization of waste.

• Total compliance with the laws.

• To establish the benchmark for good business practice.

• Employing new technologies and processing.

• By committing to resources, both human and financial.

• Measuring the cost and benefits to business of its activities.

• Monitor progress.

• Review targets.

Strategy:

As we know that Nestle uses the strategy of extensive marketing for its products so we will also

use the same strategy for our new product that us Nestle Cheese and create awareness among

the customers so that they buy it. The other strategies that will be used along with the above

mentioned strategy will be the market development strategy as we know the more the market

we will cover the more we will increase the sale and capitalize on our resources and

investment. At the later stage when we will start market development we will do a market

research and will identify customers want and will also look for the product development.

Tactics:

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We will use the tactic of placing our product as a highly nutritional and healthy in the daily

use for the customers to meet their health requirement and satisfy them with the best food

from the house of Nestle.

STP

Segmenting-Targeting-Positioning

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Segmentation:

The segmentation of customers will be done on the basis of the basic variable like Demographic

Segmentation, Geographic Segmentation, Psychographic Segmentation and Behaviouralistic

Segmentation.

Demographic Segmentation:

When we talk about the demographic segmentation we consider the variables likes age, gender,

Family size, income, education, occupation, socioeconomic. These all variables will provide us

with the insight to the potential customers.

Age:

When we make segmentation on the basis of age in Pakistan then there would be people of all

age group that may be the potential customer of our product. Normally the age group will be

from 5-65 years old.

Gender:

Segmentation on gender will not be done deeply as our product will be for both the genders.

Family Size :

If we talk about the family size in Pakistan than there is a variation in the size of family. There

are different family sizes in Pakistan. We also find strong joint family system as well in the

Pakistani Society.

Income:

The income level of customers in urban areas is high as compared to those in the rural areas. If

we talk about the income level then we can segment the market on the basis of low income level

people, moderate income level people and high income level people.

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Education:

Education is also higher in the urban areas of Pakistan as we know that in rural areas there are

not proper channels for the higher education system and mostly the people go towards the urban

areas for the sake of higher education. It is also noted that in the new era more people are looking

for higher qualification to succeed in their lives.

Occupation:

When we talk about the occupation then we can see that the occupation is different for different

set of people. In Urban areas mostly there are service oriented people and in rural areas there are

farmers who earn their income through farming.

Language:

When we segment the market we also look for the language as in Pakistan there are different

languages used in different areas. For each province there is different language.

Religion:

When we segment the market on the basis of religion then we can observe that almost 97% of the

population of Pakistan is Muslim and remaining population consists of Sikhs, Hindus, Parsi,

Christians, Ahmadis and Buddhists etc.

Nationality:

When we talk about the segmentation on the basis of Nationality then there is only little number

of overseas nationals.

Geographic variables:

When we talk about the geographic variables then it include the variables like region, population

density, climate etc.

Region:

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If we segment the whole market on the basis of region then we can segment it on the basis of

provinces, on the basis of capital cities, on the basis of urban and rural areas etc.

Population Density:

When we talk about the population density fact we look for the areas in the selected regions that

need to be considered for the maximum use of the product in a particular population sector.

Climate:

When we segment the market on the basis of climate then there are different areas with different

climate. If we talk about the Pakistan then the regions could be divided on the basis of climate of

summer, winter, autumn and spring. All the climate variation is observed throughout the Pakistan

with different intensity in different areas.

Psychographic Variables:

When we talk about the psychographic variables then it include the variables like lifestyle,

personality, value and attitude. As we have seen that in Pakistan the people in urban areas with

high income level look for well-built lifestyle. Some people’s buying behavior is also based on

their personality traits and attitude.

Behaviouralistic Segmentation:

When we talk about the behaviouralistic segmentation then it is based on the variables like

benefit sought, usage rate, user status, brand loyalty, readiness to buy, occasion and attitude

towards offering.

Benefit Sought:

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When we segment the market on the basis of benefit that the customers are looking from the

product then we might find that it is the foremost priority of the customer to get the maximum

benefit from a particular product.

Usage Rate:

When we segment the market on the basis of usage rate then we mean that how the customer

responds to a particular product in the wide scenario and how does it appeals him again to be

used. More likely in order of highly used or low used.

User Status:

When we are talking about the segmentation on the basis of user status then we will check that

the product is used for the first time, regularly or occasionally by the end user.

Brand Loyalty:

When we talk about the brand loyalty segmentation then we mean that how the brand loyalty

appeals the customers and is he willing to stay connected to the same brand.

Attitude Towards Offering:

The attitude towards offering means that if our product is creating a positive or negative impact

on the customer.

Targeting

TTarget Marget Maarketingrketing involves breaking a market into segments and then concentrating your

marketing efforts on one or a few key segments. Target marketing can be the key to a small

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business’s success.

The beauty of target marketing is that it makes the promotion, pricing and distribution

of your products and/or services easier and more cost-effective. Target marketing

provides a focus to all of your marketing activities.

Demographic Segmentation Targeting:

When we talk about the demographic segmentation we consider the variables likes age, gender,

Family size, income, education, occupation, socioeconomic. These all variables will provide us

with the insight to the potential customers.

Age:

Our age group will be from 5-55 years old customers. This will include children, teenagers and

mature buyers as the awareness of healthy food is popular among all the groups and preference is

also based on the nutritional facts.

Gender:

We will target both the males and the females as our product is suitable for both male and female

who are health conscious.

Family:

We will not target any individual in the family rather we will target the whole family. Each and

every member of the family is targeted for our product.

Income:

The customer that will be the potential buyer of nestle cheese will be from middle lower class to

higher upper class.

Education:

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Education will be a variable that will be important in the new launch of our product. As we know

that educated people are much more health conscious.

Occupation:

When we talk about the Nestle Cheese then we will look for the customers who are highly

involved in the daily busy life and prefer fast food.

Socioeconomic Status:

When we talk about the socioeconomic status of customer then we talk about the customers who

are above average or at average socioeconomic status.

Geographic Segmentation Targeting:

When we talk about the geographic variables then it include the variables like region, population

density, climate etc. As we are about to launch Nestle Cheese we need to get the detailed insight

of geographic variables.

Region:

We have decided that we will look for the market in developed cities like Lahore, Islamabad,

Peshawar, Karachi, and Quetta in the initial phase.

Population Density:

When we talk about the population density fact we look for the areas in the selected regions that

need to be considered for the launching of Nestle Cheese. The areas that are highly dense will be

the Urban and Semi-Urban areas.

Psychographic Segmentation Targeting:

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When we talk about the psychographic variables then it include the variables like lifestyle,

personality, value and attitude.

In the psychographic variable the most important part that will affect our project is the lifestyle.

When we talk about the lifestyle then the people with good lifestyle always prefer healthy

products.

Behaviouralistic Segmentation Targeting:

When we talk about the behaviouralistic segmentation then it is based on the variables like

benefit sought, usage rate, user status, brand loyalty, readiness to buy, occasion and attitude

towards offering.

Benefit Sought:

We will make sure to make customers realize that the benefit of our product is in the form of

good health as we are backed up with the brand name of Nestle which is the best name in the

food industry.

Usage Rate:

We will make sure that our product is used in the fast food industry as the cheese is widely used

in the fast foods like burgers, sandwiches and pizzas very commonly.

User Status:

We will be targeting the customers that will be using the Nestle Cheese for the first time and

make sure we also attract the customers that use’s cheese overall in their daily life.

Brand Loyalty:

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Nestle is the big name in the food industry and we will capitalize this brand name to capture our

new customer for the new brand of Nestle Cheese.

Readiness to Buy:

As we have seen that there is only three well known national brands Haleeb, Nurpur and Adams

which are in the market with the cheese products whereas Nestle will be the only multinational

brand that will be in the market with the cheese by producing it within Pakistan.

Attitude Towards Offering:

The attitude of customers towards offering will be highly based on the brand name as the giant

name in the food industry will be the preference of customers.

Positioning

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A product's position is how potential buyers see the product", and is expressed relative to the

position of competitors. Positioning is a platform for the brand. It facilitates the brand to get

through to the mind of the target consumer.

The positioning can be done on different parameters which are discussed below:

Customer Benefit Approach:

When we talk about the customer benefit approach we mean that positioning our product above

the competitor in the market by adding some extra feature in it which competitors are not

offering. When we talk about our product that is Nestle Cheese we will make an image in the

customers mind that our product is high in nutritional benefit as it contains the important

ingredients like Calcium, Proteins, Phosphors and Fats that are required for the healthy living.

We can position it in this way by making the customer realize that the nutritional benefit of

cheese is very important for the body in daily life.

The Price Quality Approach:

The positioning will be done on the Price-Quality approach as well. It means that positioning the

product in consumer mind in a way that if high price is charged then high quality is also offered

to them. As we have studied the market that the highest price for 1 KG in the local manufacturer

is being charged by Haleeb which is Rs.399/=. So we can place our price a bit higher than

Haleeb as with the strong Brand name in the food industry and by making sure that we use state

of the art technology for the cheese manufacturing in the industry to the consumer. Since we will

be the trusted multinational food manufacturer we can charge a little bit higher price than the

local competitors. As we know that when it comes to quality food the Nestle don’t compromise.

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The Use or Application Approach:

When we talk about positioning the product on the basis of its use or application then we

position the product in a manner that how customer is going to use it for the desired result. We

will position Nestle Cheese in a manner that customer can use our Cheese in daily life.

The Product Class Approach:

The positioning on the basis of product class approach will be made in a way that we will place

our product in a way that all the age group people will be using it.

PEST Analysis for Nestle

Political Environment

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Nestlé’s mega environment in Pakistan initially consists of the political restraints and the

objections that the Pakistan Government can placed on Nestle on the way it conduct its

business in the country.

Another way in which the Pakistan government may influence the way nestle conducts

its business is by placing quotas on the amount of products that it can supply, which will

limit the amount of revenue that nestle can generate.

These constrains may include the amount of a specific tax that nestle pays to the

government in order to conduct the business and this may have a resulting impact on the

consumers of nestle products in the shape of higher prices, than what it may be offering

to the other countries mainly because of a lower tax it has to pay, and it is depended on

the policy of the country.

Economic Environment

The second mega external environmental factor that influences the organization is the

economical factor, which controls the mechanism (contraction and expansion) of

production, consumption and distribution.

Nestlé makes a significant contribution to the economic sector of Pakistan.

Through generation of tax revenue, import substitution of milk powder, export and

infusion of over 2.3 billion rupees in the rural economy through milk purchases, the

company plays an active role in promoting economic growth.

The capitalist economic system consists of firms owned privately by individuals or by

corporations. In such an economy there is a great scope for the company to take favorable

decisions and move towards a better organizational environment.

Social economic structure, then the rights of owner ship and decision making (policy

making) will be transferred to the state (government) and the company will have a lower

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scope and less favorable environment, in this manner the political and economical elite

will operate the organization according to their own will.

Social Environment

In analyzing the social factors that can influence Nestlé’s course of business activities in

Pakistan, we come across the demographical statistic of Pakistan which includes, gender

specification, age specification and religious specification, how a social and cultural

values of a certain geographical area can influence the important shifts in the demand of

the product, which may result in nestle changing some of its strategies accordingly in

order to maintain its sales in Pakistan.

Nestle lays a great emphasis in penetrating into the market by keeping the cultural and

traditional values of the geographic area in which it is conducting its operation.

Before nestle begins its operations in any country its main emphasis is on studying the

cultural values of that country, in order to get its products warmly welcomed and make it

highly preferred among other company’s operating at the same level.

Technological Environment

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Research indicates that technology tend to evolve through periods of incremental change

through technology breakthroughs that either enhance or destroy the competence of firms

in an industry.

At nestle technological factor is of vital importance since many new techniques may

change the methods of production of food and make them more efficient.

Therefore nestle have to spend some of its earnings in the search of new technologies. If

it ignores this factor and do not respond to it accordingly then there is a possibility that

rival firms may take its place.

Porter five Force Model on Industry

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Porter's five forces" is a framework for the industry analysis and business strategy development

developed by Michael .E Porter. It uses concepts developing IO

 to derive five forces which determine the competitive intensity and therefore attractiveness of a

market.

Threat of New Entrants:

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It has been observed that new entrants tend to move towards the flourishing industries which are

earning reasonable profits. Keeping this fact in mind we can say that as soon as Nestle is going

to launch the Cheese in the Pakistani market there is a chance that dairy giant like Olpers will

jump into the same cheese manufacturing sector. Also we can assume that some locally sound

investor can also invest in the cheese manufacturing. We have explored that the investment to

make cheese on a large level with the state of the art technology requires a lot of investment. If

we talk about a low level manufacturing plant then it can be installed and operated on low cost

but the quality will be distracted. If Nestle Cheese is going to be launched then the direct

competition that will arise if Olpers also launches the cheese. The other barrier to entry can be

created by Nestle Cheese by attaining the economies of scale as it is backed up with the string

financial backup. This will help Nestle to attain the advantage over its competitors and will help

them to create entry to barriers for new entrants than cannot operate at the economies of scale

and as a result have to bear high cost.

Threat of Substitute:

In terms of the substitute of Cheese it can be the products like spreads and mayonnaise. But both

these products differ in the nutritional aspects. It can be used as a substitute on just few occasions

but overall it’s not a big threat to the cheese. As for the use of cheese it will be used in different

fast foods like burgers, pizza etc where spreads and mayonnaise will not be the threat to cheese.

Bargaining Power of Suppliers:

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When we talk about the bargaining power of supplier then we know that Nestle is having strong

relationship with the suppliers by making contracts with them and providing them services for

the fitness of their animals and the storage facilities like refrigeration of milk. By providing these

services to the suppliers Nestle make long and strong relationship with the suppliers. There is

threat of forward integration by the suppliers as they can sell it directly to the end user in the

original unprocessed form. There is a threat of forward integration by the supplier in the industry

as the supplier can go for forward integration by selling the unprocessed milk directly to the end

user by making its own distribution channel. There is a possibility that after the end of the

contract the supplier can switch to the new buyer. Since the suppliers in the milk industry are

very concentrated so the bargaining power is low. As we know that only 2% of the milk

produced in the industry is being processed. Quality is the bargaining power of supplier as they

negotiate price on the basis of quality they offer to the buyer. Suppliers usually don’t have large

storage capacity so for them it is a drawback.

Bargaining Power of Buyers:

The buyers usually don’t compromise on the quality and make contracts with the suppliers in

order to avoid any problem. The buyers provide extra benefits to the suppliers and with this

make strong relationship with the suppliers. The buyers cannot integrate backward as it required

a lot of investment and resources. The buyer does not compromise on the quality and set the

price on the basis of quality. The other products that are used in the manufacturing of cheese will

be imported as there are not well equipped manufacturers of emulsifiers and acidifying agents.

So in this part the buyer will be having low bargain power.

Rivalry among the Competitors:

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When we talk about the competition in the industry then in cheese industry the local

manufacturer are already in the market with their products. The Nestle will be the only

multinational cheese manufacturer in the industry but it had to compete with the brands that are

in direct competition to it in the local market. If we talk about the local brands then they will

compete on price as we have already seen. The more the brand power the more the price but the

overall low price strategy will be a loss for the competitors in the long run as they will not be

able to get the profit. We have suggested that Nestle Cheese comes with the economies of scale

concept and even after that place its product on the upper hand as compared to its competitors.

The Nestle will be backed up with the state of the art technology and the skilled labor force as

compared to its competitors. The best quality and nutritional aspect of Nestle will be designed in

a way that it over class the competitors.

Porter’s five Generic Strategies:

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Cost Leadership Differentiation Focus

LargeType 1

Type 2Type 3

Small Type 3Type 4

Type 5

We are in focus generic strategy and use type 5 because in type 5 there is best value focus

strategy because we offer products to a small range of customers at the best price value in the

market.

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SWOT Analysis of Nestle

SWOT is a strategic planning tool used to evaluate the strengths, weaknesses, opportunities, and

threats to a project. It involves specifying the objective of the project and identifying the internal

and external factors that are favorable and unfavorable to achieving that objective. The strengths

and weaknesses usually arise from within an organization, and the opportunities and threats from

external sources. For Nestle we have developed the SWOT analysis which are explained in detail

below.

Strengths

We have seen that the Nestle products are easily available in the Pakistan which is the

advantage for the company in the long run for its brand recognition and brand existence.

Immense product range and huge diversification leads to reduce risk. As we know that

there is huge range of products for Nestle in case of any new product Nestle can back its

new product with the chance of risk for any failure.

High quality standards are always the key strength for Nestle.

Effective pricing strategy through larger business operations.

High level of market share is the key strength for Nestle.

Nestle have a strong Brand image in Pakistan.

Nestle is the only multinational dairy company in Pakistan with years of expertise in the

same field.

Nestle is a social responsible company and this creates the brand image better in the eye

of the customer.

Well trained and educated staff is the strength that is very important for the success of

any organization and Nestle have it.

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Innovation, renovation, product availability and communication are major strengths for

Nestle Foods.

Nestle is having the huge market share in the dairy milk industry.

The sound financial position of Nestle is the strength for the organization.

Nestle have one of the best supply chain network.

Weaknesses

Distributors carried out their businesses for the Nestle products that can be harmful for

the organization.

These distributors, though observing the rapid increase in customer demand refuse to hire

new, more efficient and innovative staff that would take the organizations to rise rather

they stuck to their old staff members.

Lack of awareness among the target market is the major threat. As Nestle had come up

with many products that are really helpful for the healthy life of people but are not

admired by the target market due to the awareness. NesVita is also among the same class.

Selective investment due to uncertain economic and political conditions.

Low sales margins due to highly value added products.

Nestle cannot launch many of its international brands in the local industry due to the

lower income level and awareness of customers.

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Opportunities

Nestle in Pakistan has a great opportunity for expanding its markets because in Pakistan

there is a large ready market of food and beverages due to trends of eating and the

increasing.

Pakistan is the 7th largest milk producer country which can be capitalized by Nestle in the

long run.

Sell the products on corporate level will make Nestle to earn a great sum of profit and

will help in future expansion as well.

Credit policy can be adopted to increase sales by the Nestle.

The coffee brand also offers many opportunities for the company to expand by tuning the

taste of the masses towards coffee.

Threats

Many conferences and campaigns have been held against Nestle in this regard which can

damage the name and trust of its customers.

Another threat is due to the increasing popularity of its competitor OLPERS in local and

international markets.

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.

Taste of consumer has already developed which is hard to change.

Inflation is getting higher and higher so the purchasing power of the people is decreasing

day by day.

Price fluctuation due to rupee devaluation as some raw material is imported.

IFE Matrix of Nestle

4- Major strength 3- Minor strength 2- Minor weakness 1- Major weakness

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STRENGTH Weight Rating WS

Ease of availability of their products all over

Pakistan

0.08 4 0.32

Immense product range and huge diversification

leads to reduce risk.

0.09 3 0.27

High quality standards 0.1 4 0.4

Effective pricing strategy through larger business

operations

0.05 3 0.15

High level of market share 0.10 3 0.30

Have a strong Brand image 0.06 4 0.24

Well trained and educated staff 0.06 3 0.18

Innovation, renovation, product availability and

communication are major strengths.

0.07 4 0.28

WEAKNESSES Weight Rating WS

Distributors carried out their businesses. 0.09 2 0.18

These distributors, though observing the rapid

increase in customer demand refuse to hire new,

more efficient and innovative staff that would

take the organizations to rise rather they stuck to

their old staff members.

0.05 1 0.05

Lack of awareness among the target market.0.05 1 0.05

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Selective investment due to uncertain economic

and political conditions

0.04 1 0.04

No credit sales. 0.02 2 0.04

Low sales margins due to highly value added

products.

0.09 2 0.18

Cannot launch its international brands in

Pakistan easily

0.05 1 0.5

Total 1.00 3.18

EFE Matrix of Nestle

4- The response is superior 3- The response is above average 2- The response is average

1- The response is poor

OPPORTUNITIES Weight Rating WS

Nestle in Pakistan has a great opportunity for

expanding its markets because in Pakistan there

is a large ready market of food and beverages

due to trends of eating and the increasing.

0.13 4 0.52

Sell the products on corporate level. 0.09 4 0.36

Credit policy can be adopted to increase sales. 0.08 2 0.16

The coffee brand also offers many opportunities

for the company to expand by tuning the taste of

0.2 3 0.6

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the masses towards coffee.

THREATS Weight Rating WS

Many conferences and campaigns have been

held against Nestle in this regard which can

damage the name and trust of its customers.

0.08 3 0.24

Another threat is due to the increasing

popularity of its competitor OLPERS in local

and international markets.

0.09 1 0.09

Price fluctuations due to rupee devaluation as

raw material are imported.

0.1 2 0.2

The uncertainty of economic conditions poses a

great threat as the major funds invested in the

country come from outside Pakistan.

0.06 3 0.18

Taste of consumer has already developed which

is hard to change.

0.08 4 0.32

Inflation is getting higher and higher so the

purchasing power of the people is decreasing day

by day.

0.09 2 0.18

1.00 2.85

GE MATRIX

THE GE TOTAL WEIGHTED SCORE

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STRONG

3.0 TO 4.0

AVERAGE

2.0 TO 2.99

WEAK

1.0 TO 1.99

HIGH

3.0 TO

4.0

1 2 3

MEDIUM

2.0 TO

2.99

4

IFE = 3.18

EFE = 2.85

5 6

LOW

1.0 TO

1.997 8 9

The Nestle lies in the 4th quadrant in the GE Matrix and the strategy for the company that lies in

the 4th quadrant is that it should grow and build. The further strategies that could be carried out is

that it can avail the market penetration strategy, market development strategy and product

development strategy which was earlier mentioned in the MOST analysis.

Competitors Analysis

37

The competitors that are in the food industry manufacturing cheese can be divided into two

classes that are direct competitors which are the one operating in an organized sector and then

there are the indirect competitors like non branded local cheese manufacturer. As a multinational

food company in Pakistan we think that Nestle should compete with the brands that are well

known in the market and for this we have analyzed the competitors in detail about their basic

profile, products and strategies. The direct competitors of Nestle Cheese are Adams Foods,

Nurpur and Haleeb who are already manufacturing cheese.

Adam's Milk Foods (Pvt.) Ltd., specialize in dairy products. Our customers enjoy our products

produced under strict quality control and hygienic conditions which has made quality assurance

as our trademark. We are also Pakistan’s first dairy plant which produces whey Milk Powder.

We intend to be the leader in providing best quality products to our entire valued customer.

It rapidly acquired a huge customer base of institutional customers includes some prestigious

franchise restaurants and other ventures, apart from institutional base Adam's Food Products

caught the eye, and won the hearts, minds of a large number Pakistani families.

Today's consumers of dairy products want to know that the food they eat is safe and

wholesome. Technology and scientific understanding is used to guide and monitor and control

for producing cheeses that are as nutritious, safe, and wholesome to consume. The skills of our

cheese making remain paramount. We retains personal control of the whole production process.

That's a lot of responsibility and our team, ensures that every piece of cheese that reaches the

shelves, is of the same consistent high quality and great taste.

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High quality milk is needed to produce

high quality cheese. We consider cheese

making an art and strive continuously to perfect

our knowledge and skills. The milk we use

meets all federal and state health and quality requirements and standards. Dairy producers

monitor critical areas of their production to effectively cool and store milk, closely monitor the

use of medicines and chemicals to prevent residues in milk, sanitize their equipment and make

sure their wash water is clean.

Adam's Milk Products are available nationwide in supermarkets, independent retailers and

wholesale specialists. That makes us largest cheese maker in the country, capable of producing

over 20,000 tonnes annually.

Products

39

Strategies:

Pricing:

40

The pricing set by Adams is in the premium section as Adams Foods specializes in chilled dairy products.

We have seen that in the current market situation Adams Cheese types are at the top of the price bracket

as they are the oldest one in the cheese manufacturing at the local level.

Distribution:

The Adams Foods has very strong distribution network and they are covering all the big cities of

Pakistan. We have seen that Adams cheese can be found at almost all good stores and retailing points.

Product:

The Adams food had come up with the lot of variants in the Cheese and we can easily analyze that Adams

foods are working on the product development strategy as they have covered many areas of Pakistan.

Promotion:

Adams Foods does not promote their products aggressively using ATL activities. However we have seen

that BTL activities are used by the Adams Foods for the marketing and promotion of their products.

Building an excellent reputation over the years, Haleeb Foods continues to be at the

forefront of product and packaging innovation. By the grace of God, it has achieved market

leadership in several food categories with a very strong portfolio, consisting of leading national

and international brands – Haleeb, Candia, Dairy Queen, Tea Max, Skimz, Tropico and Good

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Day. Apart from its extensive nationwide distribution networks, Haleeb Foods is also serving

several export markets including South Korea, Bangladesh, Afghanistan and the Central Asian

states. Haleeb Foods has the distinction of being the first company in Pakistan to use Tetra Pak’s

novel packaging formats, Tetra Brick Aspetic (TBA) and Tetra Fino Aseptic (TFA). Haleeb

Foods has also introduced a number of unique products previously unknown to the Pakistani

market, like Haleeb Labban, delicious traditional lassi (buttermilk) prepared with pure thick

milk and yogurt, Candia Tea Max, cardamom flavored tea whitener, Candia milk, packed in

distinctive food grade plastic bottle, and Haleeb Good Day, 100% pure and natural fruit juice,

free of added sugar, artificial flavors and preservatives. All this and more makes Haleeb Foods

Pakistan’s number 1 and fastest growing packaged food company. As of fiscal 2006, its annual

turnover is Rs. 9 Billion.

Haleeb Foods’ products are made with great care, and marked with our quality seal of recognition.

We are the only dairy company in Pakistan that undertakes 21 rigorous quality control tests on every portion

of the milk collected by our teams. These internationally recognized tests are used to check for: a)

adulteration, b) microbiological contamination and c) adequacy of nutritional contents. All processes, from

preparation to quality assurance to packaging, are undertaken employing state-of-the-art technology and

equipment. Therefore, we take great pride in the fact that Haleeb Foods is the only food company in Pakistan

that has the following international certifications of quality and prestige:

HACCP (in process controls for safer products)

ISO 9002 (better quality for greater customer satisfaction)

ISO 14000 (environment-friendly operations)

Products

42

Strategies:

Pricing:

The pricing set by Haleeb Cheese is in the Low as compared to any brand present in the market. They are

trying to capture the market by offering low price as compared to the competitors and gain the market

share.

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Distribution:

The Distribution network of Haleeb is not as good as Adams as we can not easily find the Haleeb Cheese

in the market. We have assessed few stores on different locations and found that Haleeb was not available

there.

Product:

The Haleeb food had come up with just two variants of cheese in the market which are commonly used.

There is no product development strategy by Haleeb Foods.

Promotion:

Haleeb Foods had promoted their Cheese brand in the very beginning of the launch of the Cheese brand

by using ATL and BTL activities. We have found that Haleeb is now not using any ATL and BTL

activity for its Cheese product.

A wholesome life is what Nurpur stands for with Health, Energy and Taste, being the vital

ingredients. Our national team of collectors, packers, processors, shippers and employees is

committed to consistently providing safe, high-quality Hygienic Milk, Pure Juices, Healthy

Nectars, Better Butter and other food products, while protecting the environment in which these

products are manufactured and processed.

Nurpur’s dedication to quality is a commitment solidly backed by:

Comprehensive programs for food safety.

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Stringent quality control measures.

State-of-the-art production facilities and transportation technologies.

Continuous improvement research and innovation.

Dedication to the safety of our employees.

Communities and the environment.

The Nurpur brand means the finest, high quality products. Nurpur will continue to meet the

consumer and customer expectations by consistently providing products that meet the highest

standards, the Nurpur standard. For Nurpur, anything else is unacceptable.

Nurpur is one of the leading producers of butter and butter products in Pakistan,

processed from the best fresh milk. With 80% fat in Nurpur Butter, not only you will get energy

but also body required essential fatty acids. Our butter is made from cows, which roam freely

and eat fresh green grass all year round. That’s what gives Nurpur butter the rich, creamy taste

that nature intended. Nurpur butter is available in consumer packaging and for industrial

processors. Innovation is the main focus. Primary examples include the yellow butters in tubs

available under the “Nurpur butter” brand name. In Pakistan, Nurpur markets a range of

premium butters. Nurpur also exports butter to many countries.

Products

45

Strategies:

Pricing:

Nurpur placed itself in the moderate pricing level in all the products being manufactured. The prices are

made in a way that customer can differentiate it from the others and feel it economical.

Distribution:

46

Nurpur is also not having a good distribution channel. We can see that Nurpur can be found only on large

stores which are operating at a high level. So distribution channel of Nurpur is very weak.

Product:

There are many products that are being introduced in the market by the Nurpur from beverages, dairy

product and chilled products. Nurpur is also not doing any product development.

Promotion:

Nurpur does it ATL and BTL activities for the promotion of new products. We have seen the ATL

activities of Nurpur on some occasions and also we have seen that Nurpur does BTL activities normally.

CPM Matrix of Nestle and its Competitors in Cheese Industry

NESTLE HALEEB ADAM’S NURPUR

Critical

success factor

weight Rating WS Rating WS Rating WS Rating WS

Advertising 0.08 4 0.32 2 0.16 1 0.08 2 0.16

Product

Quality

0.25 4 1 4 1 3 0.75 3 0.75

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Price 0.13 3 0.39 3 0.39 3 0.39 2.7 0.351

Management 0.09 3 0.27 3 0.27 2.5 0.225 3 0.27

Financial

Position

0.1 4 0.4 2 0.2 2.7 0.27 2.8 0.28

Customer

loyalty

0.20 4 0.8 3 0.6 3 0.6 2 0.52

Market Share 0.15 3 0.45 2.5 0.375 2.8 0.42 2.6 0.39

Total 1.00 3.63 2.99 2.73 2.72

ANSOFF Matrix:

The ANSOFF Growth matrix is a tool that helps businesses decides their product and market

growth strategy. ANSOFF’s product/market growth matrix suggests that a business’ attempts to

grow depend on whether it markets new or existing products in new or existing markets.

ANSOFF Matrix:

PRESENT MARKET NEW MARKET

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PRODUCT

MARKET

PRESENT

MARKET

MARKET PENETRATION

(existing products , existing

customers)

NEW PRODUCT

DEVELOPMENT

(new product ,existing customers)

NEW

MARKET

MARKET DEVELOPMENT

(existing products, new

consumers)

DIVERSIFICATION

( new products, new customers)

Product Development Strategy

When any organization choose to develop new products for its existing markets that is product

development strategy so if the nestle launch its new product (cheese) then it is in this category so

we target the existing as well as new customers to introduce the new product so we can be also

be in diversification .

Space matrix:

Strategic Position & Action Evaluation (SPACE) Matrix is another management tool used to

help analyze a company. It can also used to determine what sort of strategy the company should

undertake. The SPACE Matrix is broken down into four quadrants as being aggressive,

conservative, defensive, and competitive. Additionally, the SPACE Matrix analysis functions

49

upon two internal strategic dimensions which are financial strength (FS) and competitive

advantage (CA). Besides, the SPACE Matrix methodology also studies two business’ external

strategic dimensions such as environmental stability (ES) and industry strength (IS).

Internal strategic position

1. Financial Strength

When we talk about the financial strength then the company is in strong position as we take data

from its annual report. We analyse that the company sales are high as compared to previous year.

We take the 2008 and 2007 and there is no report of 2009 so we take the previous year report. In

2008 its sales are 34183.85(million) and in 2007 its sales are 28235.39 (million). So the sales are

high. And when we talk about the gross profit of the company that is also high as compared to

previous year .in 2008 its gross profit is about 8952.32 (million) and in 2007 its gross profit is

7944.17 (million) that is also high as compared to previous year. So the working capital is also

high in 2008 that is 377.51 (million) and in 2007 it is 354.7 (million) .so after these calculation

we are concluded that the company is in strong financial position.

2. Competitive Advantage

The competitive advantage of nestle is that they never compromise on quality and quantity.

Quality is to win consumers trust and preference.its extensive milk collection system ensures that

the Milk you get is of the finest quality and their products are available in every city and town. It

has strong financial position because it is multinational company.

External strategic position

3. Environmental Stability

50

So there is a great potential in industry and entry barrier is very high for new unorganised brand

because already a lot of well known brands be present. so when we talk about a idea for nestle to

introduce the cheese then it has huge loyal customers and a good brand image .so we target the

middle upper class and the higher class so our prices are high and we have premier quality. There

is less risk involved in this businesses because the nestle is already working on the milk

products.

4. Industry Strength :

So in industry we take only milk product and its industry strength because we have planned to

introduce the milk product (cheese). So Pakistan with current estimates is the 4th largest milk

producing country in the world with 33 Billion litres of milk produced annually. The potential is

huge but the sector operates mostly in the informal economy and needs a consistent effort to

formalize and be able to contribute better to the national economy. Out of the total milk

produced, 97% is in the informal sector (i.e. loose milk consumed in the villages and or sold in

the cities through "Gawallas" in unhygienic conditions and without any quality standards). There

are 8 Million farming households in Pakistan with a total herd size of 50 million animals. 97% of

these farmers are not linked to formal markets and hence are not progressing in economic terms.

Dairy Development Company has emerged with guarantee backup by government of Pakistan. .

The platform proposes to improve the dairy sector through improved research facilities, training

and capacity building of farmers, training veterinarians, improving the cold chain through milk

chillers, promoting healthy pasteurised milk, develop model commercial dairy farms, focus on

breed improvement, facilitation of credit financing to dairy farmers and linking the rural area

based farmer to the market mechanism.

Space matrix:

51

Aggressive quadrant:

so when we talk about our company the that is in aggressive quadrant because it has strong

financial position that has achieved major competitive advantage in growing and stable industry

and dominating factor in industry.

Marketing Mix

The marketing mix is probably the most famous marketing term. Its elements are the

basic, tactical components of a marketing plan. Also known as the P's of marketing, the

marketing mix elements are price, place , product, promotion and packaging.

Product:

52

As Nestle Cheese we are entering the market with the three basic and widely used cheese

types. The three types of cheese are processed in different manner for the taste it gets after

processing. The first and most commonly used cheese is the Cheddar cheese which is used in

many foods like burgers, lasagna, sandwiches etc. So to cater this segment of market Nestle is

coming up with the Cheddar Cheese. On the other hand we have analyzed that there is also a

demand for Mozzarella Cheese so we have also decided to come up with the Nestle Mozzarella

Cheese. The third type is the Pizza cheese which is specially designed for the Pizza lovers. The

shelf life of our product will be one year as Cheese after being processed can retain its life for at

least 1 year. As we are committed to deliver the cheese in its healthy form we will try to use

minimum preservative to retain the natural flavor.

Price:

The setting of price is a very complex and important task for the brand. For the Price

setting we have to analyze the market carefully as what our competitors are offering. For this we

have checked that in the current market pricing Adams is charging the premium price as it was

mainly in the manufacturing of cheese than the other competitors. On the second number is

Nurpur in terms of pricing and on third its Haleeb Foods. We know that for Cheese product we

will be looking to target the niche class with the three sound competitors but we will place our

price ahead of Adams as we are the multinational company and our brand name justifies our high

price as compared to Adams which is a local company. So in this case we will charge

approximately 2-5 % high price as compared to Adams.

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Place:

We will launch our product in large cities of Pakistan like Lahore, Karachi, Peshawar,

Quetta and Islamabad with full force. We will use all possible distribution channels as it is our

major strength. We will use Superstores, Departmental Stores, General Stores, Supermarkets and

retailers to make sure that our customer never feels like going without purchasing our product if

he/she wants to buy.

Promotion:

For the promotion of our product we will be using extensive marketing strategies

both in ATL and BTL.

ATL Activities:

In the ATL activities we will be using print media for the promotion and awareness of

our product. We will use T.V.C for the marketing of Nestle Cheese along with the Radio

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advertisement. We will also publish our advertisement in daily newspapers that are widely read

across our targeted cities. As a new technique we will also use Internet for the promotion of our

product by advertising it on our website. We will also place our hoardings on the important

places in our targeted cities as we have seen that Nestle already hold many hoarding in major

cities at important locations. So we will use those hoarding to promote our Nestle Cheese.

BTL Activities:

The BTL activities are also very important for the companies to create awareness of their

product and show their existence in the market at point of sale. For the initial time period we will

demonstrate our free taste stalls at the large point of sales. Secondly we will get place on the

shelves at the eye level to get the customer attraction. We will also use Fascias for the promotion

and marketing of our Nestle Cheese. Bunties will also be placed in the large stores for the

customer attraction and marketing. Posters will be placed in departmental stores along with mini

stores for marketing and to show our existence of newly launched brand.

Packaging:

For the packaging we have analyzed the market and our competitors. We have seen that Haleeb

and Nurpur are coming in plastic packaging where as Adams is using the card board packaging.

Based on the market study about the packaging of our competitors we have made a table for the

products and their packaging along with the pricing.

Company Plastic Packaging Card Packaging

Adams Sliced Cheddar Cheese 1 Kg Rs.472

Adams Sliced Cheddar Burger Cheese 1 Kg Rs.502

55

Adams Block Cheddar Cheese

2 Kg Rs.699

Adams Block Mozzarella Cheese

2 Kg Rs.1045

Adams Sliced Cheddar Cheese (10 Slices) 200 gm Rs.128

Adams Block Cheddar Cheese 227 gm Rs.123

Adams Block Pizza Cheese 227 gm Rs.183

Adams Block Mozzarella Cheese 227 gm Rs.143

Adams Block Pizza Cheese 453 gm Rs.357

Adams Block Mozzarella Cheese 453 gm Rs.277

Adams Block Cheddar Cheese 453 gm Rs.242

Nurpur Sliced Cheddar Cheese 1 Kg Rs.415

Nurpur Block Cheddar Cheese 2 Kg Rs.689

Nurpur Sliced Cheddar Cheese (10 Slices) 200 gm Rs.120

Nurpur Block Cheddar Cheese 225 gm Rs.115

Nurpur Block Cheddar Cheese 450 gm Rs.235

Haleeb Sliced Cheddar Cheese 1 Kg Rs.399

Haleeb Block Cheddar Cheese 2 Kg Rs.675

Haleeb Sliced Cheddar Cheese (10 Slices) 200 gm Rs.117

Based on the above survey from the market we have decided that we will come in card

packaging for the Block Cheese in Cheddar and Mozzarella type in 1 Kg, 2 Kg, 450 Gms and

56

225 Gms. For Pizza Cheese we will come in the card packaging in 450 Gms and 225 Gms.

Whereas for the sliced cheddar cheese we will come in the Plastic Packaging in 1 KG, 50 slices,

200 gm with 10 Slices pack with each slice with the weight of 20 gms.

Bibliography:

http://en.wikipedia.org/wiki/Religion_in_Pakistan

http://www.consumerpsychologist.com/cb_Segmentation.html

http://en.wikipedia.org/wiki/Cheese

http://www.adams.pk/product_list.php

http://en.wikipedia.org/wiki/Porter_five_forces_analysis

http://www.absoluteastronomy.com/topics/Porter_5_forces_analysis

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http://www.allbusiness.com/agriculture-forestry/agriculture-animal-farming/11734079-1.html

http://www.nurpurfoods.com/about.htm

http://haleebfoods.com/haleeb/QS_company_profile.php

http://en.wikipedia.org/wiki/File:Marketing-Mix_(en).png

http://www.marketingteacher.com/Lessons/lesson_marketing_mix.htm

http://www.indianmba.com/Occasional_Papers/OP118/op118.html

http://freepresentationslides.blogspot.com/2009/08/above-line-promotion.html

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