NESTLE JUICES

Executive Summary: Nestle foods was established in 1866. Since then it has

continued to provide quality products to its customers

with products and packaging innovations. Nestle juices

is Pakistan’s number one and fastest growing food

company. The company is trying their level best to

differentiate themselves from other local companies

and trying to win the competition in juice industry by

adopting the modern trends and technologies in both

operational fields as well as in marketing of their

products.

INTRODUCTION AND HISTORY OF

COMPANY:

1860’s

1905 - 1918

1918 - 1938

1938 - 1944

Nestle Today: The Nest continues to be the identity of nestle

5th Largest company in the world

Annual turn over of 70 billion Swiss Franc

522 Factories in 81 countries

200 operating companies

1 basic research center

20 Technological development groups

More than 231,000 employees over the world

Nestle Juices: Encouraged by the consumer response to NESTLE

ORANGE JUICE that was launched in 1996, the

category of NESTLE juices was expanded with the introduction of Mango-Orange and Mango flavors

in the year 2000. This has further strengthened the

position of Nestle as leader in the value

added/premium drinks market. Consumer

response to these new flavors has been very upbeat and is expected to gain further.

Types of Nestle Juices: NESTLÉ Pure Orange Juice

NESTLÉ Clear Apple Nectar

NESTLÉ Red Grape Nectar

NESTLÉ Pineapple Nectar

NESTLÉ Mango Orange

NESTLÉ Chaunsa Nectar

NESTLÉ Guava Nectar

NESTLÉ Mango

NESTLÉ Berrylicious Nectar

Mission Statement:

“Good food good life”

Build Branded food business to improve quality of

life by offering tasty, affordable and highly

nutritional products to our consumers while

maximizing stake holders' value”

Vision: Explore all over the worlds-from baker to babies,

parents to pet owners single servings to catering:

providing for all their needs always with the assurance of outstanding quality.

Primary Activities:

Inbound Logistics: Major raw materials of nestle orange juices are different

pulps of orange such from Germany and France. Nestle

company is being getting there raw material from local

market in the Pakistan. Nestle juices included their

ingredient such as fresh fruit nectar of mango, apple,

pineapple, orange, included their fresh juices.

Nestle imported all machinery and formulas who is the

advantage of nestle company.

Operation:

Production Process

Fruit Juice - Production Process Flow

Packaging & Labeling Then Storage

Outbound Logistics: In Nestle Company the activities that include in

outbound logistics are, they establish their sale and

distributive offices in big cities like Karachi, Lahore,

Islamabad, Faisal bad, Gujranwala etc. and also hire

suitable distributors on agreed profit margins. Who

bought from nestle office of the city and try to distribute

to the each retailers and shop keeper in the city.

Advertisement Strategy:

Bill Boards

On the Shop Counters Of Stores

News Papers

On Television Channels

Market Management: Strong customer relationship

Identify need of customer like new taste new fruit

item

Maintain market leadership by maintaining the

pure quality

Provide juices which are fit for human body

Stop brand selling don’t reduce quality

Quality is our grantee

Company Structure: Nestlé also has a head-office in Pakistan in Lahore

Nestlé has divided the whole Pakistan in to three

zones:

Northern Zone

Central Zone

Southern Zone

Plant & Equipment:

Plant Capacity

Plant Equipment

Political Or Legal Forces:

Taxation Laws

Labor Laws

Laws on Hiring and promotion

Environmental Protection Laws

Foreign Trade Regulation

Attitude Towards Foreign Countries

Political Instability

Economic Forces

Social Factors

Key Indicators

Technological Factors

Productivity improvement through

automation

Market Analysis:

Product Life Cycle:

Competitors Analysis:

Competitors of Nestle in Market

Shezan

Haleeb

Country

SWOT Analysis Of Nestle:

Strengths: Company Image

Quality Conscious

Well-Developed Strategy

Market Share

Good Marketing Skills & Services

Brand Strength

Research & Development

Product Innovation

HR Department

Weakness:

Storage Ability

Opportunities:

Support Foreign Investors

Scientifically Gas

Changing Social Trend

Health Conscious

Global Hub

Market Growth

Limited Option In Real Fruit Juices

Threats:

Government Regulation

Increase In Competition

Entry Barrier

Labor Cost

Inflation Rate

Porter Five Forces Model:

Porter Five Forces Model:

Threats Of New Entry

Bargaining Power Of Supplier

Analyze Buyer Behavior:

Initiate Buyer Behavior

Customer External & Internal Stimuli

Distributors & Retailers role In Buying

Process

Factors Stimuli To Purchase:

Thirst

Taste & Flavor

Fit For Body

Who Takes Final Decision: Usually family main members take the final

decision to purchase juices. But a single person

also can take that decision according to his or her desire.

They also implement the purchase transaction. In

a family if the main family member implement the

purchase transaction and whole family drinks the

juices. Juices are disposable means after drinks mostly packing of the juices are disposed.

Market Segmentation:

For Travelling & Occasion

For Domestic Tours

Identifying New Segments

Positioning:

Point Of Parity

Point Of Difference

Brand Element

Product Strategy:

Core Benefit

Basic Product

Expected Product

Augmented Product

Potential Product

Price Strategy:

Nestle juice are available six flavored and

two size in the market. One is 200ml and

second is 1000ml. The packing of 200ml

target of individual customer and 1000ml

packing target the whole family.

Pricing Objective:

Maximum Profit Margin

Quality Leadership

Long Relationship With Customers

Price Structure:

Consumer price

Mango and orange mix flavored

200ml 20 Rs.

1000 ml 130 Rs.

Pineapple and red grapes

1000ml 145 Rs.

Price Demand Curve:

Estimating Cost: Nestle company do accumulated production

because if they produced mass production so it

reduced their labored cost and other cost for production process. Its a big advantages of the

nestle company who produce large quantity of

units. With the help accumulated production

Nestle company have a low cost of production

and high profit margin.

Going Rate Pricing:

Nestle company selecting a price method

of going rate price. Because their pricing

near the competitor pricing. Shezan juices

price is same of our nestle juices . Nestle

juices has a market leader in beverage

industry.

Final Price:

Nestle set the final pricing related to their

market competitors so nestle price do not

have impact on the company policy ,and

other marketing activities.