[AAMIR RAFIQ]

December 26, 2016 130501037

Submitted To

[ZAIN-ul-ABADIN]
130501035

Sir Usama Waleed

SWOT Analysis of Nestle Pakistan

Strengths

World Renowned brand.

Extensive distribution system.
Broad Product portfolio.
Brand equity.
Marketing strategies established by the company are innovative.
Financial, marketing and sales strategies are formulated by gauging the periodic
research carried out to judge market trends.
It is a large scale organization, with abundant funds and has the capability of
acquiring weaker firms by throwing them out of competition.
Growing sales and profits.
Major shareholder in the food industry of Pakistan.
Aggressive marketing.
Efficient distribution networks throughout the country.
Quality products.
Environment friendly.
Skilled labor.
Educated staff.
Large number of offerings.
Pre purchase virtual display.
Good background of the company.
Easy to approach outlets.
Strong supply chain network.
Strong research and development department.

Weaknesses

The target market of Nestle products is upper middle and high class because lower
middle and poor class cannot afford to buy Nestle products due to its premium price
compare to other companies.
It has many brands under the same umbrella group so managing such large number of
individual brands can create conflict of interest.
Nestle has been criticized many times for the issue of child labor.

Professional Practice Assignment

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[AAMIR RAFIQ]
December 26, 2016 130501037
Submitted To

[ZAIN-ul-ABADIN]
130501035

Sir Usama Waleed

Opportunities

Expanding market by entering into other markets & penetrating more & more in the
rural markets through its robust supply chain and transition of spots of unorganized
business to organized one will lead to further expansion of the companys business.
Nestle have opportunity to expand their product line like tea etc.
Company can open separate stores for eliminating retailers.
Integration of new acquisitions in growth markets.
Increasing Income levels due to stable political scenario, improved literacy rate &
controlled inflation, disposable income of the people is increasing there by resulting
into upsurge in demand & changing their lifestyle.
Growth in international & emerging markets.
Transition to a "Nutrition and well-being" company.
Continuous growth in the Pakistan coffee market.
Ethical business activities and support in community.
Nestle can make itself as social company.
Fair Trade agreements for other products produced in third world countries.
In today's health conscious societies, they can introduce more health-based products,
and because they are a market leader, they would likely be more successful.
It should regularly indulge with candy and chocolates.

Threats

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.
The present economic crisis in the world, led to the withdrawal of foreign
management from the company and the investment has come to a halt.
Competition in the market with increasing number of local & national players its
becoming very hard for the companies to differentiate themselves from others.
Increasing price of commodities will result in further increase in the price. Further
increase in price will result in decrease in sales, margins & brand switching.
Effect of Seasonalitys upon sales.
Imported raw material, in some of the companys products.
Major Player may enter target market Legal and ethical issues.
Market segment growth could attract new entrants.
Economic slowdown can reduce demand.
Main competitors Shezan, Olfrut, Maza and Haleeb are main threat for Nestle juices
especially the Shezan is growing very fast.
Inflation is getting higher and higher so the purchasing power of the people is
decreasing day by day.
Taste of consumer has already developed which is hard to change.

Professional Practice Assignment

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