EXTERNAL ENVIRONMENT

Demographic External factor

More the education more will be the awareness about brand and quality food.

If the income level of people is high then purchasing power will be high so they willpurchase
more.

Nestle products are made for people belonging from all age groups.

Both male/female are included equally in its target market.


Economic environment

If the inflation rate is high then there will be decrease in purchasing power. so inflation
indirectly affects the companys sale.

Nation varies greatly in its level and distribution of income.

Changes in major economic variables such as income, cost of living, interest rate andsavings
have a large impact on the market place.


Political environment
Government regulations to protect interest of society and from unfair business practices.

Unstable political conditions.

Law order situation getting worse.

Legal environment
Registered in the stock exchanges of Pakistan.


Social/cultural environment
Consumption behavior of Pakistani people is high so they consume more goods.

As Pakistan is Muslim country so we cannot add any ingredient which is prohibited in
Islam or which is not Halal.

As nestle water is the branded item so the people who are brand conscious will prefer touse
nestle water .so nestle is focusing more on the posh areas.


Technological environment
Technological environment is changing rapidly.

Most dramatic force shaping companys offerings and the way product is marketed
.
Companys must keep up with technological changes to match up with its environment.


Internal Environment

In Nestle Internal environment ensures.

Employees are on side with the goals of an organization.

They have direct impact on product quality,dependability and overall productivity.

They are internal market, which impact everydepartment within an organization; asatisfied
internalmarket will be better able to satisfy external market.

Nestle under the supervision of top management runs thedepartments of finance,operations,
accounting, sales andmarketing, research and development to achieve thegoalsof organization.


Micro Environment
In Nestle microenvironment includes:
a)S u p p l i e r s :
Suppliers provide the resources like labor and material resources to produce goods and
services.They add to customer overall value delivery system. Labor supplies include handling of
Quantity of labor
Quality of labor
Labor strikes
Labor relations
Material supplies deals with the:
Quality of material
Price of material
Stability of material inputs
Delivery delays

Nestle efficiently handles the quality, quantity, price and stability of both material and
laborsupplies. Management maps out the strategies for labor strikes, supply short age sand delays
toavoid increasing the cost of production, which can badly affect sales in short run and
customersatisfaction in long run.
b)Marketing Intermediaries:
It includes the firms that help the company to promote, sell and distribute its goods tofinal
buyers.
The physical distribution firms determine the ways to store and ship goods to reach
theirdestination.
Marketing service agencies including marketing research firms, advertising agencies andmedia
firmsare also hired to target and promote product to right market.
Financial intermediaries like banks, insurance companies helps to finance transactionsand
insureagainst risks associated with buying and selling of goods.
Nestle works in coordination with marketing intermediaries to make its product Pure LifeWater
available and visible to its valuable customers.
c)C u s t o m e r s :
Nestle deals with the reseller customers who buy the product Pure Life to resell at a
reasonableprofit.

Macro Environment
Macro environment include political, cultural, economical factors but as for as Nestle Pure
LifeWater is concern none of above factors affect on it. Because it is not at luxury item they
areselling necessities of life which can never be affected.