Principles of MarketingReport Presentation

Presented by : Abdul Rahman Adeel

Presented to : Sir Mudassir Hussain

Student ID : 59311

• Found in 1877 by the merger of “Anglo Swiss condenced milk company” and “Farine Lactée Henri Nestlé”.• A baby food mixture was the core product of Nestle initially.• Rose it’s production and sales during the last years of second world war.• Acquired a number of companies during the 1900s.• Acquired the ice cream manufacturing company dreyer in 2005 and became the largest ice cream manufacturer of the world.• Today Nestle is known as the leading food and beverages organization over the world.• Operates in 194 countries, has 447 factories and employees over 333000 people over the world.• Has the major share in world’s largest cosmetics company L’Oreal.• Was ranked # 1 in the world’s most profitable organizations in 2011 by the Fortune Global 500.

Getting to know Nestle

Nestle in Pakistan

• Arrived in Pakistan by a joint venture with Milkpak in 1988.• Acquired the company in 1992.• Subsidiary of Nestle SA ltd. Vevey, Switzerland.• Operates as a public limited company in Pakistan, listed in Karachi and Lahore stock exchanges.• Has corporate head office in Lahore.• Corporate resident office in Karachi.• Regional sales offices in 9 cities.• Employess over 3500 individuals.• 4 production facilities.• Started operations for Afghanistan as well.• Signed the water stewardship agreement with WWF-Pakistan.• Engages with 190’000 farmers.• Won awards from Karachi stock exchange and Pakistan center of philantrophy for it’s remarkable progress and social responsibility.

Management Committee

Offices and Factories

Mission and Vision Statement

Mission Statement:“To positively enhance the quality of life of the people of Pakistan by all that we do through our people, our brands and products and our CSV activities.”

Mission and Vision Statement

Vision Statement:“Nestlé’s global vision is to be the recognized leading Nutrition, Health and Wellness Company. Nestlé Pakistan subscribes fully to this vision of being the number one Nutrition, Health, andWellness Company in Pakistan.

In particular, we envision to;

• Lead a dynamic, motivated and professional workforce proud of our heritage and positive about the future.• Meet the nutrition needs of consumers of all ages from infancy to old age, from nutrition to pleasure, through an innovative portfolio of branded food and beverage products of the highest quality.• Deliver shareholder value through profitable longterm growth, while continuing to play a significant and responsible role in the social, economic, and environmental sectors of Pakistan.”

Product Portfolio

Ambient Dairy

•Nestle Milkpak

•Nestle Nido

•Nestle Milkpak Cream

•Nestle Nido

•Nestle Everyday

•Nesvita

Chilled dairy

•Nestle Chilled Latte

•Nestle yogurt

•Nestle riwayati maza

•Nestle Actiplus yogurt

•Nestle Milkpak Yogurt

•Nestle zeera Rait

•Nestle Podina Raita

Beverages

•Nestle fruita vitals

•Nestle Nesfruita

Bottled Water

•Nestle Pure life

Culinary and food

•Maggi Noodles

•Maggi Umda MAza

Baby Food

•Nestle Cerelac

•Lactogen

•NAN

Breakfast Cereals

•Nestle Coco crunch

•Nestle Milo Cereals

•Nestle Corn Flakes

•Nestle Fitnesse

Coffee

•Nescafe Classic

•Nescafe Gold

•Nescafe 3 in 1

Confectionery

•Nestle Crunch

•Nestle Kitkat

BCG Matrix

BCG Matrix (Market shares in percentage)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Milkpak NestlePure life

Juices Noodles

Nestle

Competitors

Ansoff Matrix

Mar

ket

Pen

etra

tio

n (

MP

)

Nestle Fruita vitalsNesfruita

Nesvita

Mar

ket

Dev

elo

pm

ent

(MD

)

Pro

du

ct D

evel

op

men

t (P

D)

Nestle Crunch

Related diversification

(Baby Food, Dairy,

Bottled water,

confectionery) Div

ersi

fica

tio

n (

Div

)

PEST Analysis

Political

•Instable political environment

•Fluctuation of taxes

Economical

•High Inflation rate

•Low per person capital income

•Low growth rate of economy

•Decreasing value of money

Social

•Rich and unique culture

•Exclusive trends and beliefs

•Society’s ability to adapt

Technological

•Advances in telecommunication technology

•Strong media industry

SWOT Analysis

Strengths

• Brand Image

• Growing sales and profits

• Marketing expertise

• Trusted quality

• Product availability (Distribution Channel)

• Strong Research and development

• Socially responsible image

Weaknesses

• Higher prices

• External sources of raw material

Opportunities

• Increasing demand for healthier food

• Market ready to adapt new trends

• Absense of matching competition

• Possibility to introduce area specific stuff

Threats

• Uncertain economic conditions

• Increasing competition

• Food contamination

• Raising prices of raw material

• Unsure law and order situation

Market Segmentation

Milk products

Nestle Pure life

Nesle Fruita Vitals

Geographic Segmentation

Demogeaphic Segmentation

Family life cycle

Age

Occupation

Income

Gender

Nesfruita

Maggi Umda Maza

Maggi Noodles

Breakfast Cereals

Nestle Nido

Nestle Cerelac

Nescafe

Nestle Crunch

Kitkat

Targeting

Undifferentiated/ Mass Marketing

•Nestle Milk Pak

•Nestle Pure Life

•Nestle Fruita Vitals

Differentiated/ Segmented Marketing

•Nesfruita Juices

•Chilled dairy products

•Nesvita

•Maggi Noodles

•Maggi Umda Maza

•Baby Food

•Breakfast Cereals

•Coffee

•Confectionery

Positioning

More Healthy, more

nutritious foodTrusted purity

Unmatched Quality

Positioning

Product Life Cycle (PLC)Introduction Growth Maturity Decline

Nesvita

Nestle

Chilled coffee

Nesfruita

Nestle Milo Cereals

Nestle Fitnesse

Nestle coco crunch-

Cereals

Nestle Crunch

Nestle Milkpak

Nestle Nido

Nestle Everyday

Nestle Fruita Vitals

Nestle Pure Life

Maggi Noodles

Nestle Cerelac

Lactogen and NAN

Nestle Corn flakes

Nescafe

Nestle Kitkat

Yogurt

Maggi Umda Maza

Nestle Meethay

Product Life Cycle (PLC)

0

2

4

6

8

10

12

Introduction Growth Maturity Decline

Product Life Cycle of Nestle Pakistan

Creating shared value and wealth

Conclusions

Nestle has been earning well for itself and offering ample returns to the society for over two decades now.

Still growing it’s business and product portfolio as no competitor has given matching competition yet.

Positioned as the provider of healthiest and nutriest food in the market.

Has major products in good market strength.

Nestle should focus on developing more new products and exploring more new markets to retain it’s leading position in the food industry of Pakistan.