Nestle Water and Milk

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Nestle Pakistan Ltd.

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Submitted To:

MRS. ANILA

Submitted By:

Assignment

ASIF

REEMA

NIDA

SUNDUS

INTRODUCTION TO

BUSINESS

AWKU Mardan

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(SOURCE: www.Nestlé.pk, www.Nestlé.com)

Nestle is the largest food company in the world. Nestlé is a Switzerland Based International Food Group and is a merger of two companies:Henri Nestlé (1867) + Anglo Swiss (1886) = Merged (1905)Through its effective marketing and a vast sales and distribution network throughout the country, it ensure that its products are made available to consumers whenever, where ever and however. Nestlé has the unique ability to provide a complete range of food products, services and well known brands to meet the needs of consumers around the world. It is not a faceless corporation catering to faceless consumers, but a human company providing a response to individual human needs. It respects the cultures of the countries it operates in and recognizes the need for quality of life of their people.Nestlé Pakistan is proud of its commitment to excellence in providing value and services to its consumersNestlé Pakistan Ltd is registered on the Karachi and Lahore stock exchange. It operates in many ways but people, products and brands are the main flag bearers of the company’s image. Nestlé Pakistan envisage to grow in the shortest possible time into a food company 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. The Company's strategy is guided by several fundamental principles. 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. Nestlé Pakistan visualizes the company to develop an extremely motivated and professionally trained work force, which would drive growth through innovation and renovation. It fulfills its social responsibilities and environment is also taken care of.The Company's priority is to bring the best and most relevant products to people, wherever they are, whatever their needs, throughout their lives.Now Nestlé is undisputed leader in food industry, with more than 509 factories in 83 countries having 231,000 employs. Out of which 220 are in Europe, 153 in America, 136 in Africa and Oceania.Nestle is the largest food company in the world.It is present in all five continents, has an annual turnover of 74.7 billion Swiss Frances.There are 509 factories are running in 83 countries, having 231,000 employs.

Profile:

Introduction:

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• Bottled water Arrowhead Deer Park Perrier Poland Spring Pure Life S.Pellegrino Vittel

• Baby food Cerelac Gerber Gerber Graduates Mucilon NaturNes Nestum

• Breakfast cereals

Cheerios Chocapic Cini Minis Cookie Crisp Estrelitas Fitness Nesquik

Chocolate & Confectionery

Smarties Kitkate

Dairy products

Cerevita Coffee-Mate La Laitière Nido

Products:

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Coffee Nescafé Cappuccino Nescafé Classic Nescafé Decaff Nescafé Dolce Gusto

• Petcare

Alpo Beneful Cat Chow Dog Chow Fancy Feast Felix Friskies Gourmet One Pro Plan

• Nutrition & health

Boost Clinutren Impact Jenny Craig Nutren Optifast Peptamen Power Bar Resource Yogurt

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Uniliver Cadbury IBL Mitchell’s Candy land

Competitors::

Chart:

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Nestle is:o Increase rate of purchase/ consumption

Nestle products are widely use in market. As Nestle has introduced Nestle mineral

water, it has increase competition in current market. As the pure water issue is

increasing day by day therefore the demand of mineral water is increasing. This

increase of demand creates more purchasing as well as consumption.

o Attract rival’s customers

As Nestle is one of the most trusted Brand in FMCG, therefore as Nestle introduce

product in market it attract rivals. For Example, In cereal Segment Nestle introduce

“Corn Flakes” in current market where Fuji was already competing. This increases

other rivals to bring innovation in their marketing strategies to sustain in market.

Same case with Nestle Nacters and Powdered tea milk like “Everyday” and “NIDO”.

There are so many rivals

o Buy out rivals

o Convert non-users into current users

Nestle aims to convert consumers of other companies in to their own customers.

They are providing such a good quality of product so that they would attract

customer towards their product.

o Selling more of the same products or services in current markets.

o Is experimenting in a big way to bring needed volumes in that severe competition market

penetration plays a big role.

o Nestle is eyeing on the market penetration and it is being targeted by devising different

marketing strategies.

o Acquire new consumer base by making the products available to the every interior of the

country and increase its sales, to sustain growth.

ANSOFF’S MATRIX

Market penetration:

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Nescafe: A product of coffee. Nescafe is the most knowable product for coffee lovers. Now

a day’s Nescafe is the 1st priority for many people. They are attracting consumers by providing

different kinds of coffee and with good quality so this is how they convert non-users into current

users.

o

o

o Community coffee is also a coffee company against nestle. But coffee of this brand is not very knowable and comparatively nestle is more preferable.

Nestle products Competitive Products Water Aquafina (PEPSI), SUFI, KINLEY (COCA COLA).Cereals Kellogg's, FAUJI.Dairy products Prema, ADAMS, BLUEBAND.Juices Shezan, COUNTRY, OL-FRUIT (OLPERS).Milk Olpers, HABIB, NURPURChocolate Cadbury, MITCHELLES, Mars

Sell new products or services in current markets. These strategies often try to sell other

products to (regular) clients. These can be accessories or completely new products. Often

existing communication channels are used. Nestle start its product with Milk Pack then

Nestle further develop products like, under considering the demands of consumers, nestle

launched following products.

In the sell new products or services in current markets. These strategies often try to sell

other products to (regular) clients. These can be accessories or completely new products.

PRODUCT DEVELOPMENT:

For example:

Competitor:

For example:

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Often existing communication channels are used. Nestle start its product with Milk Pack

then Nestle further develop products like, under considering the demands of consumers,

nestle launched following products.

Nestle Raita is also an example, they simply increases their produce line and introduces

new product in the same market they have begun with the simple raita and they extended

it to different flavours e.g. Mint, Zeera etc.

Nestle beverages

Nestle baby food

Nestle Pure Water

Nestle Raita

Nestle Coffee & others

Nestle cereals

pet cares

Nestle has won their consumer’s trust through good quality & purity in their products. They

know that consumers would never compromise on quality

Sell more of the same products or services in new markets. These strategies often try to

attract 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 cultural

differences.

Breakfast cereals are the example for market development. They introduced different types

of cereals in market like Nesquik is for Kids and Cheerios cereal are for family.

MARKET DEVELOPMENT:

For example:

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Sell new products or services in new markets. These strategies are the most risky type of

strategies. Often this is focus to explain why the company enters new markets with new

products. On the other hand diversification strategies also can decrease risk.

This is where we market completely new products to new customers. There are two

Types of diversification, namely related and unrelated diversification, Related

Diversification means that we remain in a market or industry with which we are familiar.

Alpo, Dog Chow, Gourmet Etc.

Nestle used to introduce products relate to human care but now they introduced pet care in Pakistan as well

There are many pet loving people in Pakistan, but there is no trend of keep pet in our house as it is in other countries. In foreign pet cares is as important as taking care of a human But now in Pakistan, people have developed the taste of keeping Pet. So as we know that there is also a different type of food for different people so nestle also introduces pet food. Pet food is also a new product for the new market which is Pakistan. As it expands into different product lines, Nestle needs to be flexible in its manufacturing and other value chain activities.

DIVERSIFICATION:

For example:

Nestle Water and Milk

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