Nestle Complete Project

MARKETTING
(PROFESSIONAL PROJECT)
SUPERVISED BY:
Mr. Abdul Mannan
SUBMITTED BY:
Tahir Ahmad Nasim
BBA (Hons) 8th Semester
Roll #: 169 Session (Fall) 2006-2010
Department of Management Sciences

UNIVERSITY OF EDUCATION
OKARA CAMPUS
New Product Development
IN THE NAME OF ALLAH,

THE MERCIFUL AND
THE MOST COMPASSIONATE
University of Education Okara Campus

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Dedication
In the name of Allah the most Beneficent

And
The Merciful
I dedicated all my efforts to

My Beloved Parents
And
Respected Teachers Specially Mr. Abdul
Mannan

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FARWARDING SHEET
This Professional Project of Marketing by Tahir

Ahmad Nasim (169) is about a New Product
Development for "Nestlé Cerelac" via Nestle
Products has been completed under the supervision
and guidance for the fulfillment of requirement for
the degree of BBA (HONS).
Date: ___________ Signature: __________

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Acknowledgement
All the praises and thanks to Almighty Allah for

bestowing upon us the courage and talent to complete
this task. I am also thankful to Sir Abdul Mannan for
his guidance and his cooperation in my studies. The
topic he has given me is very helpful in learning the
way of Report Writing. I have tried my best to
complete this report promptly to this. I am also
grateful to my friends who helped me a lot in
preparing this report.
Tahir Ahmad Nasim

Roll No. 169
BBA 8th (Evening)

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EXECUTIVE SUMMARY
In this professional project analysis of new

Product of Nestle Pakistan Limited is done in
very detail to check out performance and
progress of the product. We are going to launch
Nestle Cerelac Wheat, Honey and Flakes. And
to measure these activities Projected Income
Statement, Common size Income Statement,
Market Analysis, Marketing Mix Strategies and
SWOT Analysis are performed that have
explored the real picture. At the end Conclusion
is made on the basis of this analysis. The future
recommendations are made to improve company
in every aspect.

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What is project?
Any time we solve a problem, we complete a project. Any time we
realize an opportunity, we complete a project. And any time we
make a change to how our business works, we complete a
project. '
A project is a unique set of co-ordinate activities, with definite starting

and finishing points, undertaken by an individual or team to
meet specific objectives within defined time, cost and
performance parameters'
Characteristics of a project
A project is a
 Complex.
 Non routine work.
 One time effort.
 Instrument of change.
 Temporary with defined start and end dates.
 Frequently risky and involving uncertainties.
 Intended to achieve specific outcome.
And the one time effort is limited by

 Time
 Budget
 Resources and
 Performance specifications and
o Not done before.
The major characteristics of a project are:
1. Projects have defined objectives.

2. Projects have defined life span with the begging and
an end.
3. Projects us.

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Chapter NO. 1
Company Profile

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Company Profile
HISTORY:
In the 1860s Henri Nestlé, a pharmacist, developed a food for babies who
were unable to breastfeed. His first success was a premature infant who
could not tolerate his mother's milk or any of the usual substitutes. People
quickly recognized the value of the new product, after Nestlé's new formula
saved the child's life, and soon, Farine Lactée Henri Nestlé was being sold in
much of Europe.
In 1905 Nestlé merged with the Anglo-Swiss Condensed Milk Company. By

the early 1900s; the company was operating factories in the United States,
Britain, Germany and Spain. World War I created new demand for dairy
products in the form of government contracts. By the end of the war, Nestlé's
production had more than doubled.
After the war Government contracts dried up and consumers switched back
to fresh milk. However, Nestlé's management responded quickly,
streamlining operations and reducing debt. The 1920s saw Nestlé's first
expansion into new products, with chocolate the Company's second most
important activity.
The end of World War II was the beginning of a dynamic phase for Nestlé.
Growth accelerated and companies were acquired. In 1947 came the merger
with Maggi seasonings and soups. Crosse & Blackwell followed in 1960, as

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did Findus (1963), Libby's (1971) and Stouffer's (1973).

Diversification came with a shareholding in L’Oreal in 1974.
The first half of the 1990s proved to be favorable for Nestlé: trade
barriers crumbled and world markets developed into more or less
integrated trading areas. Since 1996 this/here have been acquisitions
including San Pellegrino (1997), Spillers Pet foods (1998) and Ralston
Purina (2002). This/here were two major acquisitions in North America,
both in 2002.
In July, Nestlé merged its U.S. ice cream business into Dreyer's, and in
August, a USD 2.6bn acquisition was announced of Chef America, Inc.
Nestle is one of the world’s largest food company which is represented on all
the five continents. It runs some 500 factories in 75 countries employing
over 220,000 workers globally.

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History Nestle Pakistan Ltd.
Nestle Pakistan Limited (Nestle Pakistan) is a subsidiary of Nestle S.A.

based in Switzerland. Nestle Pakistan is principally engaged in the
manufacture, processing and sale of food and beverage products which
include milk, yogurt, ghee, cream, coffee, juices, Instant drinks and bottled
water.
The company also manufactures infant cereals, breakfast cereals, prepared

meals, chocolates, confectionery and culinary products. The company
markets its products under international brand names that include Nescafe,
Maggi, Cerelac, Milky bar, Kit Kat, Bar-One, Milkmaid, and Pure Life.
The company with three manufacturing facilities operates all over Pakistan.
As a consequence of joint venture arrangement between Nestle S.A. of

Switzerland and Milkpak Ltd. in 1988, the existing production facility of
Milkpak in Sheikhupura became a part of Nestle Milkpak.
The Milkpak Sheikhupura factory commenced operations in 1981 as a

producer of UHT milk. By 1988, it had expanded its operation and was also
producing butter, cream, desighee - all under the brand name of MILKPAK
and juice drinks under the brand name FROST.

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To meet the demands of the large food market that Pakistan offered, Nestle
Milkpak reorganized and reinforced the production of existing brands and
gave shape to new production lines. The first to come was a milk powder
plant, which not only began producing NIDO in 1990 but was also critical to
the production of several milk-based products in the future.
To meet the needs of safe and quality storage for the ever expanding product
range and their volumes, a National Distribution Center (NDC) was
completed and became functional in June, 2000.Spread over 6614 square
meters; it has the capacity to store up to 8300 pallets (approximately 8000
tons).
Nestlé’s success to make inroads in Pakistan is reflected in its strong

financial performance. For the six months ended December 31, 1998 sales
stood at Rs 2.5 billion and operating profit at Rs 338 million. Nestle earned a
post-tax profit of Rs 195 million.

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VISION STATEMENT
The strategic priorities of Nestle Pak Ltd are focused on delivering

shareholder value through the achievement of sustainable, capital efficient
and profitable long term growth. Improvements in profitability will be
achieved while respecting quality and safety standards at all times.
In line with this objective, Nestle Pak Ltd envisions to grow in the shortest
possible time into the number one food company in Pakistan 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.
Nestle Pak Ltd envisions the company to develop an extremely motivated

and professionally trained work force, which would drive growth through
innovation and renovation.

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MISION STATEMENT
At Nestlé, we believe that research can help us make better food so that
people live a better life. Good Food is the primary source of Good Health
throughout life. We strive to bring consumers foods that are safe, of high
quality and provide optimal nutrition to meet physiological needs.
Research is a key part of our heritage at Nestlé and an essential element our
future. We know there is still much to discover about health, wellness and
the role of food in our lives, and we continue to search for answers to bring
consumers.
Good Food for Good Life.
Nestlé’s mission is to provide the best food to people throughout the

world.

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OBJECTIVES
At the threshold of this new millennium, Nestlé’s objective Is to

consolidate and strengthen its leading position at the cutting edge of
innovation in the food area in order to meet the needs and desires of
customers around the world, for pleasure, convenience, health and well
being.
BUSINESS PRINCIPLES
Since Henri Nestlé developed the first milk food for infants in 1867, and
saved the life of a neighbor’s child, the Nestlé Company has aimed to build
a business based on sound human values and principles.
While our Nestlé Corporate Business Principles will continue to evolve and
adapt to a changing world, our basic foundation is unchanged from the time

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of the origins of the Company, and reflects the basic ideas of fairness,
honesty, and a general concern for people.
 People first
Employees, people and products are more important at Nestlé than systems.
Systems and methods, while necessary and valuable in running a complex
organization, should remain managerial and operational aids but should not
become ends in themselves. It is a question of priorities. A strong orientation
toward human beings, employees and executives is a decisive, if not the
decisive, component of long-term success.
 Quality products
Our focus is on products. The ultimate justification for a company is its

ability to offer products that are appealing because of their quality,
convenience, variety and price -- products that can stand their ground even
in the face of fierce competition.
 Long-term view
Nestlé makes clear a distinction between strategy and tactics. It gives

priority to the long-range view. Long-term thinking defuses many of the
conflicts and contentions among groups -- this applies to employment
conditions and relations with employees as well as to the conflicts and
opposing interests of the trade and the industry.

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Of course, our ability to focus on long-term considerations is only possible

if the company is successful in the struggle for short-term survival. This is
why Nestlé strives to maintain a satisfactory level of profits every year.
 Decentralization
Switzerland is home to Nestlé's Swiss subsidiary, its international

headquarters and the registered office of Nestlé's holding company, but
Nestlé does not regard its Swiss headquarters as the center of the universe.
Decentralization is a basic principle of Nestlé.
Our policy is to adapt as much as possible to regional circumstances,

mentalities and situations. By decentralizing operational responsibility, we
create strength and flexibility and are able to make decisions that are better
attuned to specific situations in a given country. Policies and decisions
concerning personnel, marketing and products are largely determined
locally.
This policy creates stronger motivation for Nestlé's executives and

employees and a greater sense of identification with Nestlé's business. It is
not Nestlé's policy to generate most of its sales in Switzerland, supplemented
by a few satellite subsidiaries abroad. Nestlé strives to be an "insider" in
every country in which it operates, not an "outsider."
 Uniformity
A very important concern at Nestlé has to do with uniformity: how

consistent Nestlé's principles, policies, rules of conduct and strategies should
be, and to what extent they should differ depending on the country,

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subsidiary, region, branch or group of products. In general, Nestlé tries to

limit the uniformity of its policy to a requisite minimum. This minimum is
then systematically enforced, unless this/here are compelling reasons in a
given market that justify deviation from policy.
 Diversification
Nestlé does not want to become either a conglomerate or a portfolio

manager. Nestlé wants to operate only those businesses about which it has
some special knowledge and expertise. Nestlé is a global company, not a
conglomerate hodgepodge. We regard acquisitions and efforts at
diversification as logical ways to supplement our business, but only in the
context of a carefully considered corporate marketing policy.
NESTLE CORE VALUES
“The Nestlé global vision is to be the leading health,

Wellness, and Nutrition Company in the world. Nestlé
Pakistan subscribes fully to this vision”.

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Chapter NO. 2
Nestle Pakistan
Products

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NESTLE PAKISTAN PRODUCTS

We believe that food plays a key role in achieving a well-balanced person.
And so our philosophy is Good Food for a Good Life! With over 140 years
of experience and expertise, we take great pride in bringing you a portfolio
of health and wellness because happy, healthy consumers are important to
us.
Browse our range of products:

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Milk, Dairy and Chilled Dairy
Welcome health, strength and happiness into your home with delicious and
nutritious MILKPAK; standardized UHT milk that benefits from Nestlé's
expertise in bringing you the very best in health, wellness and nutrition.
MILKPAK is a trusted brand known throughout the country for its nutritious
wholesome goodness and pure natural taste. To secure a happier and
healthier future for your family, you need the support of a strong partner like
MILKPAK, now fortified with extra strength of Iron, Vitamin C and Vitamin
A that keeps you and your family strong!

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Iron as an essential mineral helps in the formation of healthy blood and

strengthens your immune system. Vitamin C helps the absorption of Iron in
the body and Vitamin A is important for clear vision.
Beverages
Jaago!
Come Alive!
Stimulate your mind. Awaken your soul. Arouse your senses. Come alive
with NESCAFÉ. Every great tasting cup of NESCAFÉ is rich, aromatic and
favorable. It is frothy, intense and indulging; bold and satisfying…
Serve it hot or icy cold; strong black or milky, the NESCAFÉ
experiences are as diverse and unique as it’s many blends and
varieties.
Ranging from the morning wake-me-up, to getting through

the day, quiet reflective moments to unwinding, parties to simply hanging

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out with your pals, the NESCAFÉ magic goes beyond just a great tasting cup
of coffee; its eye opening, thought provoking &
stimulating. It stimulates one physically, mentally and emotionally touching
the body, mind and soul. NESCAFÉ fits the bill A to Z!
NESCAFÉ CLASSIC
NESCAFÉ Classic kicks start your day and keeps you going and going…
NESCAFÉ GOLD
The premium blends of coffee that gives you rich taste with an aroma to
soothe your soul.

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NESCAFÉ 3 in 1
Sugar, Creamer & Coffee; all you need is love and a little hot water. Makes
every cup taste great. Easy to make, convenient to store and hassle free
usage.
Bottled Water
Pakistan’s Favorite Water

NESTLÉ PURE LIFE is pure, safe and healthy drinking water for you and
your family. Every bottle of NESTLÉ PURE LIFE is produced with the
Nestlé Safety System and is carefully sealed with a proprietary seal. Purity
of the highest standards is matched by an optimal balance of essential

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minerals, enhancing the health and wellbeing of your family. No wonder its
Pakistan’s favorite water because more people trust it than any other brand.
For your convenience NESTLÉ PURE LIFE is available in non-returnable

0.5 liter and 1.5 liter bottles at retail outlets and Bulk bottles for Home &
Office Delivery in 19 & 12 liter (12 liter is available at retail outlets).
Prepared Meals
MAGGI realizes that mums feel the need of being more fun around their children;
therefore, it gives them a chance to break out from their mum mould. Now involve your
little ones in the kitchen for a supervised activity full of fun and great learning as they
help prepare MAGGI Noodles for themselves.
New MAGGI 2-Minute Noodles are available in three delicious flavors: Chicken,
Chatkhara and Lemon Chaska.

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Breakfast Cereals
NESTLÉ CORNFLAKES, NESTLÉ KOKOCRUNCH

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Breakfast has been declared the most important meal of the day – and with good reason.
It’s the first meal after your body has been resting all night and this is the meal that is
going to fuel the body and prepare it for the day ahead.
All of us: children, teens and even adults benefit from a good breakfast. A bowl of cereal
is an ideal way to start your day!
Available in two varieties, NESTLÉ CORNFLAKES (275g and 150g boxes) and kids’
favorite chocolaty NESTLÉ KOKOKRUNCH (330g and 170g boxes) are delicious
cereals made from wholesome grains and packed with Vitamins, Calcium and other
minerals.
Chocolate and Confectionary

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Have a break, have a KITKAT
Chocolate is one of the most loved indulgences around the world.

It is one of life's little pleasures, which delights the senses of all ages.
KITKAT is by far one of the most popular chocolates all around the world! It’s trademark
red and white colors and the distinct KITKAT logo makes it one of the most recognized
brands ever.
This light hearted treat of wafer fingers coated with delicious smooth chocolate, can be
enjoyed in the signature style of snapping one finger at a time.
KITKAT Chunky is a single solid finger that is perfect for those who want a mouthful!
So have a break have a KITKAT!!!
KITKAT is sold in 11g, 17g and 35g finger bars and

KITKAT Chunky is available in 46g bar

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BABY FOOD
Bharpoor nashvonuma!
Sehatmand mustakbil ka behtrin aghaaz!
Best Start to a Healthier Future!
The product is related with baby food category. Mothers can start giving it to their child
from age 6 months to 3 years. Nestle has its own “Development Nutrition Plan” which
consists of 3 stages.

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Whether it’s your first-born or even your third bundle of joy – each
baby is unique and special. You want the best for your baby in every way and that also
means the best nutrition for your baby’s healthy development, giving him or her the solid
foundation for a bright and healthy future!
From birth to 3 years of age, your baby goes through a period of rapid growth and
development. Choosing the best nutrition for your baby can be difficult and confusing
and you always wonder if it’s just right.
Each stage of your baby’s growth is unique and so are the changing nutritional
requirements. CERELAC infant cereals (6 months onwards) are easy to digest and
grouped in stages according to the changing nutritional needs of the growing child, with
CERELAC providing the right nutrition at each stage.
CERELAC is available in three sizes: 350g & 175g box packaging and a 25g sachet
packaging for your convenience.

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STAGE 1: GENTLE FIRST FOOD
It’s time to introduce solid foods into his/her menu. Our single grain cereals are smooth
and light on your baby's stomach, helping his/her move from milk to solid food.
NESTLÉ® CERELAC® Stage 1 Infant Cereals are suitable for babies after 6 months.
They are made from natural single grains, are gentle on baby's digestive system and help
in transition from milk to solids.
Nestlé® CERELAC® Infant Cereals are made from natural grains, fruits and vegetables.
They use CHE (Cereals Hydrolyzed Enzymatically) to break down carbohydrates in the
cereals into smaller units, thus making them easier to digest.
CERELAC® Rice
CERELAC® Wheat
STAGE 2: NEW TASTES
It’s time to try some new tastes… like different kinds of puréed fruits, vegetables and
infant cereals. Your baby can now swallow something more solid. His/her digestive
system has developed, his/her stomach is growing larger and his/her system less fragile.

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After 6 months, your baby is beginning to push forward, hold toys firmly and look for
them when they’re misplaced.
STAGE 3: RICHEST TASTES & TEXTURES
Your baby can’t get enough variety of flavors? Then she is moving in the right direction –
both physically and nutritionally. Now that she can consume meat and fish, it’s time to
introduce his/her to a few new tastes and textures.
Infant Cereals are suitable for babies from 8 to 24 months. Richest tastes and textures
satisfy your baby’s urge to chew and teaches him to appreciate more complex tastes.

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Chapter NO. 3
Marketing
Research

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Consumer Survey:
Dear Respondents, I am a student of BBA (Hons) Marketing. And I am

conducting a study on Nestle Cerelac having a professional project on
marketing. Your cooperation will be highly appreciated.
Name ______________ Age ___________
Gender _____________ Income ________
Residence _________________________________________
Q1. What will be your feelings to do work in Nestle Cerelac environment?
1) Amazing 2) Good 3) Bad
Q2. Which kind of flavor you want in Nestle Cerelac?
1) Fruits 2) Flakes 3) Mix Flavor
Q3. What if Cereal is provided by Nestle?
1) You will prefer but not buy
2) You will prefer to buy it
3) You will neither prefer nor buy

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Q4. Do you satisfy with existing prices of Nestle Cerelac?
1) Yes 2) No 3) To some extent
Q5. Will you recommend Nestle Cerelac to other people?
1) Yes 2) No
Q6. Comment regarding past experiences with Nestle Cerelac?
1) Excellent 2) Good 3) Normal
Q7. How many times you use Nestle Cerelac at your residence?
1) Many 2) Sometimes 3) Neither
Q8. Which name you like?
1) Wheat Honey & Flakes
2) Infant Cereal Multigrain & Mixed Fruits
3) ______________________
Q9. Which thing you will prefer in Nestle Cerelac?
1) Quality 2) Price 3) Both
Q10. Do you satisfied with the distributor’s behavior?
1) Yes 2) No 3) To some extent
Your suggestions:
_________________________________________________
_____________________________________________________________
________________________________________________

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By: Tahir Ahmad Nasim
Roll No: 169
Interpretation and Analysis:

The Questionnaire provided the following results in percentage
ANALYSIS (PERCENTAGES)
OPTION 1 OPTION 2 OPTION 3 TOTAL

QUESTION NO 1 25% 55% 20% 100%
QUESTION NO 2 29% 31% 40% 100%
QUESTION NO 3 21% 40% 39% 100%
QUESTION NO 4 46% 24% 30% 100%
QUESTION NO 5 65% 35% 0% 100%
QUESTION NO 6 58% 10% 32% 100%
QUESTION NO 7 48% 32% 20% 100%
QUESTION NO 8 75% 20% 5% 100%
QUESTION NO 9 39% 29% 32% 100%
QUESTION NO 10 30% 30% 40% 100%

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Chapter NO. 4
New Product
Development

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Nutrition, Health &
Wellness – New Product
Development at Nestlé
Introduction:
New Product Development is a business and engineering term which

describes a complete process to develop a product and bringing it to the
market.
Businesses operate in markets that are constantly changing. Consumer
Tastes and expectations are always on the move.
New Products are a vital part of a firm’s competitive growth strategy.
This Further study examines a market-focused innovation developed by
Nestlé. It explores the development of Cerelac Cereal for "Self Feed" babies.
New Product Development Process:

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Idea Generation:
As the baby becomes a toddler and is getting more adventurous with
his/her food. The baby has sufficient reflexes to be able to hold small pieces
of food or small objects without dropping them. They should also be able to
eat more and more by themselves, holding a small mug, bowl or spoon.
Chewing is now possible, if the pieces of food are sufficiently small and soft.
The new idea came in to mind is that to launch such a product which fulfills
the requirements of the child and is eligible for lower class and middle class.
The ideas of new product was obtained from employees, customers, R&D
department and marketing managers and then checked through market
survey.
Three (3) new product ideas were given:
1) Wheat, Honey & Flakes

2) Nes lac
3) Infant Cereal Multigrain & Mixed Fruits.
Idea Screening:
In this step we analyzed the effectiveness and efficiency of the ideas and
came to know that the idea (Wheat, honey and Flakes) is feasible to
manufacture and will be profitable. And the target market benefits from the
market. The main idea of screening is to eliminate unsound concepts. so We
made a survey for this purpose. From the survey research we got opinions
that most of the people choose our 1st product “Wheat, Honey and Flakes”.
Because of its benefits and cost effectiveness.
CERELAC® Baby Cereal Wheat Honey & Flakes

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Concept Development and Testing:
After selecting the idea of Wheat, Honey and Flakes we developed a

product which gives your baby the texture of tiny flakes and a new flavor
of added honey to explore. And we've added specially adapted milk to
meet your baby's nutritional and developmental needs. NESTLÉ® Stage
4 BABY CEREALS offer enhanced texture, with new ingredients like
honey and flakes. This experience is specially designed with bifidus BL
(B. LACTIS) - a probiotic that contributes to healthy digestive tract flora.
After that we Test the concept by asking a sample of prospective

customers what they think of the idea. This idea considered successful
and effective due to its ingredients.
Marketing Strategy Development:
Marketing strategy consists of 3 steps.

1. Target market and Positioning:
Target market is set out after making complete analysis. The market should contain
certain points like:
Nestlé Cerelac’s primary target market is infant of 0-5 age and the secondary
target market is the mothers and Doctors which consist of
 Large number of customers

 Demand for our product
 Availability of products

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And in Positioning we determine our product’s position in the market. By this analysis
only first P (product) of the marketing mix is designed by keeping in mind the
requirement of infants on the other hand rest of the three P s (Price ,place and
promotion) and to some extent the PRODUCT too are designed by focusing on the
mothers preferences.
After this we came to know that where our product stands in market and how much it
earn goodwill.
We can make this analysis by checking our:
 Sales
 Number of Customers
 Market share
 Reputation
Product positioning is how a product is positioned in the mind of the customers.

Positioning begins with a difference in the Product that is worth establishing to the extent
that it is improved, distinctive, superior, communicable, pre-emptive, affordable and
profitable.
Differential Advantage:
Refers to any feature of a product or organization perceived by resources to
be desirable and different from the competitors. So this brand has its own
development plan for babies which vita has not yet. It thoroughly guides the
parents which things are important and at what stage? It has a lot of variety
in terms of tastes & texture and also assortments which vita missing.
2. Price, Distribution and market budget:

In Price, Nestlé Cerelac sets prices of their products according to the market
demand as low as possible because Nestlé is the trend setter in the market in
order to attract large amount of customers.

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In Distribution, one of the most critical success factors is the ability to

build, develop, and maintain a robust distribution network. Availability near
the customer is vital for wider penetration as most products are high value
products. It takes enormous time and effort to build a chain of stockiest,
retailers; dealers etc. and establish their loyalties. So Nestlé Cerelac has its
own warehouses for the storage of products as well as it has also
hired some warehouses.
3. Quality:
In third step Performance quality is the level at which the product’s primary
characteristics operate. The company has put great effort to maintain the
quality level of the brand which is the main factor of Nestlé s success
Business analysis:
In start, the sale of product will be zero and cost will be very high on product
promotion. The product will be sell at no profit even we can face some lose
in start. And after some time the more profit can be generated due to
increase in market.
Product Planning:
This stage of the process involves several steps. We develop the
Nestle Cerelac Project and responsibility for the project is assigned to a
project team. The proposal of Nestle Cerelac is analyzed in term of
Production, Marketing, Financial and Competitiveness factors. A
development budget is approximately Rs.25, 00,000/- is established and
some preliminary marketing and technical research is undertaken. Nestle
Cerelac Wheat, Honey and Flakes features and components specifications
are outlined. Finally, a project plan of this product is written up, which
includes estimate of future development, production and marketing costs

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along with capital requirements and improvements and manpower needs.

Project proposal is given to top management for a go or no-go decision.
Product Development:
At this stage, out planning is completed and the product is physically
developed. We choose the most appropriate plan and then start working on
it. The plan we selected is the best among all available and meets the most of
requirements. A development report to management is prepared that spells
out in fine detail:
1. Results of the studies;
2. Required plan design;
3. Production facilities design;
4. Marketing Test plan;
5. Financial program survey.
Test Marketing:
Stage 4: JUNIOR STRONG FOUNDATION

Ready to try more!
Up until now product has been company secrets. Now product goes
outside the company and its time to test the product in typical usage
situations to determine customer acceptance.
Test Marketing is a controlled experiment in a limited geographic area to test
the product or in some cases certain aspects of the marketing strategy, such

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as designing or advertisement. The main goal of the test market is to

evaluate and adjust the general marketing strategy to be used and the
appropriate Marketing Mix. Throughout the test market process, findings are
being analyzed and make specific adjustments if necessary. Upon
completion of a successful test market phase, the marketing plan can be
finalized and the product prepared for launch.
Commercialization:
In this step the product is actually launch. Distribution pipeline is filled with
product. The firm commits to introduce the product into the marketplace.
During this stage, heavy emphasis is placed on the organization structure
and management talent needed to implement the marketing strategy.
Emphasis is also given to following up on such things as errors in the
design, production costs, quality control and inventory requirements. Critical
path analysis is useful at this stage.
Quality level:
Consumers consider that the level of the product quality when purchase
decisions are both new and existing products. At minimum, buyers want
product that will perform the functions they are supposed to and do so
reasonably well. Some customers are willing to accept lower quality if
product use is not demanding and the price are lower.
In designing new products, it must be considered what criteria
potential customers use to determine their perception of quality.
Eight general criteria are:
 Performance
 Features
 Reliability
 Durability
 Serviceability

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 Overall evaluation
Product Design:
Many well-design products are easy to us as intended and pleasing to the
senses. Designing new products with both ease of use and aesthetic appeal
can be difficult, but it can clearly differentiate a new product from
competitors. Good design can add great value to a new product.
Product life cycle:

Introduction:
When Nestle Cerelac Wheat, Honey and Flakes will be first introduces
there will be no sale revenue and more losses. There will be also a lot of
promoting and advertising as the product is new so that consumers get
information about product existence. So this is where Nestle have to spent
the large amount of money for promoting its product and establishing brand
as the leader in the communication market.
Growth:
This stage of life cycle also has high promotion costs involved in it, this is
due to the fact that Nestle Cerelac Wheat, Honey and Flakes is becoming
established as a consumer necessity and lots of other companies decide to
enter the growing market there will also increased profit.
Maturity:
In this stage the promotional cost will be very low as brand is well
established and there is no need for publicity. Sales volume will be at peak
and profit level very high.
Decline:
This is the stage where the product’s sales volume have to decrease and
prices and market profitability.
The progression of a product through these stages is by no means certain. It
depends on the product category. Our company must have various

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techniques designed to prevent the process of falling into the decline stage.
In most cases however, one can estimate the life expectancy of a product
category. Marketers' marketing mix strategies change as their products goes
through their life cycles.
Expected Product Life Cycle of Nestle Cerelac Wheat, Honey and

Flakes:
Nestle Cerelac Wheat, Honey and

Flakes on Introduction Stage
Every yummy spoonful of NESTLÉ® Stage 4 BABY CEREAL, also

gives your little one 14 essential nutrients, including 100% of the
daily value for iron, and tummy-friendly prebiotics to help maintain
a healthy digestive system. With each new taste and texture your

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baby tries with Nestlé Baby Cereal, her world – and personality – will
continue to grow.
Stage 4: JUNIOR STRONG FOUNDATION

Ready to try more!
At this stage, your baby has sufficient reflexes to be able to hold small
pieces of food or small objects without dropping them. They should also
be able to eat more and more by themselves, holding a small mug, bowl
or spoon. And thanks to the new teeth pushing through, chewing is now
possible, if the pieces of food are sufficiently small and soft.
Even though your baby’s diet is not exactly like yours, it’s definitely
progressing. The nature of their diet is moving forward, your baby’s now
ready for walking, talking and all the other adventures that are just around
the corner…
CERELAC® Baby Cereal Wheat Honey & Flakes
Celebrate another first with baby – starting solid foods – with Nestlé
Baby Cereal.

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Nestlé Baby Cereal gives your baby more wholesome goodness than
ever before because it’s the first and only with Natural Cultures™
bifidus BL (B. lactis):
At around one year, your baby is becoming a toddler and is getting more
adventurous than ever – both with food and in personality!
NESTLÉ® BABY CEREAL Wheat, Honey and Flakes (Add Water)

gives your baby the texture of tiny flakes and a new flavor of added
honey to explore. And we've added specially adapted milk to meet
your baby's nutritional and developmental needs - all you have to do is
add water! With 14 essential nutrients, including 100% of the
recommended daily value for iron and tummy-friendly prebiotics for a
healthier digestive system, NESTLÉ® BABY CEREAL Wheat, Honey and
Flakes isn't just nutritious - it's delicious!
Product Characteristics:
Product Benefit:
The core benefit – a complete diet for babies as it has 12 vitamins, 5
minerals, calcium and iron. And the augmented benefit is as available in
different tastes & textures. The new variation in texture includes fruit pieces
in cereal which help babies in learning how to chew the food.
Consumer Benefit:
The consumer benefits are as:
High quality product.

Easily available in market.
Affordable prices.
Variety & assortment.

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Point of Differentiation:
This brand has its own development plan for babies which vita has not yet. It
thoroughly guides the parents which things are important and at what stage?
It has a lot of variety in terms of tastes & texture and also assortments which
vita missing.
Brand Mantra:
“GOOD FOOD, GOOD LIFE”
Brand mantra is directly linked with the strategic objective of the company
which is building long-term customer relationship, customer retention and
customer loyalty.
Brand Slogan:
“BHARPOOR NASHVONUMA”
“BEST START TO A HEALTHIER FUTURE!”

Brand slogan also point out towards the brand performance element.

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How is baby progressing?
Here is a measure which tells about the progressing of a baby at different times.
What can baby start to eat?

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Chapter NO. 5
Market
Segmentation

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Market Segmentation:
To occupy distinctive and durable place related to competing baby food in target market
the Nestle Cerelac is divided into four segments basis.
 Geographic Segmentation:
Cerelac segments its market geographically on divisional basis. They divide in different
zones. And every distributor is restricted to sale its products only in his own zone.
E.g. Lahore is divided in
North, west, south, east and south north.
 Demographic Segmentation:
Age:
Regarding this variable, Nestlé Cerelac has segmented the market from early age infants
to 5 years old children and has launched different flavors and kinds of cereal according to
their requirements. On other hand Nestlé Cerelac has made this product for infants but has
actually targeted the mothers.
Income Group:
This is also an important variable on which segmentation can be carried out. People
belonging to the lower income groups cannot afford to buy readymade baby foods. So
Nestlé will target that segment whose income puts them in the upper middle and higher
income groups.

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 Psychographic Segmentation:
Class consciousness:
Nestlé Cerelac has also segmented the specific class of mothers who doesn’t want to give
breastfeed to their children so Cerelac is the most preferable and best nourishing food
for infants as proxy of chest food.
Level of Education:
Nestlé Cerelac makes promotional strategies keeping in view the customer s level of
education. If the percentage of education is high in a country then through
advertisements people can be made well aware of their product and can convey their
message easily. Promotion and education has a direct relationship.
 Behavioral Segmentation:
Benefits:
It has 12 vitamins, 5 minerals, calcium and iron. And the augmented benefit is as
available in different tastes & textures.
Target Market:
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Nestlé Cerelac’s primary target market is infant of 0-5 age and the secondary
target market is the mothers. The only first P (product) of the marketing mix is
designed by keeping in mind the requirement of infants on the other hand rest of
the three P s (Price ,place and promotion) and to some extent the PRODUCT too
are designed by focusing on the mothers preferences.
Marketing Mix Strategies:
 Product:
Cerelac is a brand of cereal made by Nestlé. It is marketed as a snack for the whole family
but is popular for infants.
Size:
CERELAC is available in three sizes: 350g & 175g box packaging and a 25g
sachet packaging for your convenience.
Shape and Color:

The shape and the color of the Cerelac are quite attractive for the customers.
Labeling and Packaging:

The labeling, packaging includes the Nestlé brand and logo. The packaging includes an
expiry date and time along with a manufacture date. Second part of labeling includes the
quantity of product in grams along with ingredients and contents.
Competitive Advantage:

79
NESTLÉ Cerelac is the only popular and quality baby food in Pakistan, Its unique 'Stay
Fresh seal and a long lasting shelf life gives the brand a formidable competitive advantage.
Not only it is easy to make but also it is completely made considering the digest system
and requirement for infants on different stages of age. The factors that make Cerelac
successful is quality and superior nutritional value.
 Price:
Price of Product:
Nestlé Cerelac sets prices of their products according to the market demand as low as
possible because Nestlé is the trend setter in the market.
Profit Margin:
The profit margin is usually high because of the high quality of the product.
Stability of Price:
Its prices generally trend to fluctuate according to the changes in required ingredients.
Price Discounts:
On special occasions and festivals, Nestlé Cerelac keeps giving different kind of price
discounts.
 Place:
Outlets of Product Located:
Nestlé Cerelac is available / distributed all over in Pakistan regardless of big and small
cities.

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Direct Sales:
Nestlé Cerelac is not sold directly to the customers because of the extensive consumer
groups.
Warehousing Facilities:
Nestlé Cerelac has its own warehouses for the storage of products as well as it
has also hired some warehouses.
 Promotions:
Channels Adopted for Promotion:
Different channels are to be used for advertising the Cerelac using the major English
newspapers, steamers, bill boards, and television.
Advertisement Budget:
Nestlé has preplanned to start the financial year but it is kept secret b the company.
Nature of Marketing:
The product will be marketed aggressively into the market.

79
BCG Matrix:
Pure Life Water

Culinary Products
Confectionaries
Milk Products
Coffee Chocolate Drinks
Dietetic and Infant Foods Fruit Drinks

79
Above BCG matrix is defining the current standing of Nestlé products. If we compare
Cerelac in baby food industry in Pakistan Cerelac would be standing still in cash
cow because neither there is market growth in this industry nor any good competition. I
couldn’t find any other baby food product which is producing in Pakistan. If there is any
so that product would be standing in question mark or in dog section.
Stars:
The two SBUs, Mineral water and Confectioneries fall into this category of the BCG.
These SBUs have high market share and high industry growth rate. These SBUs are
requiring lots of investment to compete in the growing market. For example lots of money
is being spent and aggressively e-marketing.
Cash Cows:
Milk products, Coffee and Dietetic and Infant food have a high market share and are doing
business in mature industries. Since the customers of this product category are loyal, the
marketing costs of these SBUs are quite low and as a result a large amount of cash can be
generated. Customer Loyalty is a must for these Cash cows to maintain their market
share.
Question Marks:
Including in this section are the culinary products of the organization. The products such
as Maggi 2- minute Noodles and Maggi cold sauces have a low market share and a high
growth rate. These products especially the cold sauces are operating in a highly
competitive market.
Dog:
Chocolate and Fruit drinks fall into this category and they possess a low market share and
a low growth rate. This is quite a small increase considering the rise in the sales of other
SBUs. However, the chocolate drinks are still profitable so the firm does not have to
worry about liquidating or getting rid of this SBU.
Nestlé needs to introduce new flavors such as apple, grape etc. to capture the market that
prefer these flavors. This will not only increase the sales of the SBU, but it will also
increase its market share. At the moment, additional amount of money is not being
invested in these SBU s, as they are not very profitable. Nestlé is currently trying to

79
maximize profits from this category by minimizing expenditures and by differentiating the
product to build market share.
Chapter NO.6
Branding

79

79
Branding:
Brand building strategy:

Brand development strategy of Cerelac has been far reaching and has managed to
remain in the limelight ever since it became a favorite with their nutritious ingredients
for infants. The brand development strategy of Cerelac comprised redesigning of its
brand development policies and techniques to keep up with the changing mindset
and requirements of its consumers.
Brand image:
Impression in the consumers' minds of a brand's total personality (real and imaginary
qualities and shortcomings). Almost all of the mothers must know the name of Nestlé
Cerelac, since it is a leading name in infant food that s why Cerelac has created a
strong brand image. Millions of mothers around the world consider Nestlé Cerelac as
the best food for their children. Brand image is the significant factor affecting Cerelac s
sale. Cerelac brand name is very well known all over the world.
Brand personality:
Brand personality is the way a brand speaks and behaves means assigning human
personality traits to a brand so as to achieve differentiation. Cerelac s brand
personality reflects the positioning of its brand. When researching the positioning of a
product, consumers are often asked how they would describe that product if it were a
person. This can ensure that consumers have a clear view of the brand values that
make up the brand personality, just like the values and beliefs that make up a person.
Many people see Cerelac as a mother because it takes care of children and understand
their requirement same as mother it is also shown by the new slogan of Cerelac is:
BEROONI TAHAFFUZ DEN AAP OR ANDROONI TAHAFFUZ CERELAC
Brand differentiation strategies:

79
Nestlé Cerelac is known as an only infant s food in Pakistan; the Company has
differentiated its brand in number of way as
Performance quality:
Performance quality is the level at which the product’s primary

characteristics operate. The company has put great effort to maintain the
quality level of the brand which is the main factor of Nestlé s success.
Conformance quality:
Conformance quality is the degree which gives the assurance of quality of

the brand. Nestlé Pakistan has been declared an ISO 22000 company in
recognition of its continuing excellence in quality and food safety, ISO
certification gives high level of conformance to the quality of all Nestlé
s brands including Cerelac. Features show the different characteristics which
supplement their basic function. Nestlé Cerelac doesn’t only focus on
providing the basic nourishing food for the infants but the main factor of
its popularity is that that it keeps adding different features in their
product according to the changes and requirement which supplement the
product
Labeling and Packaging:

Packaging consists of all activities of designing and producing the container
for a product. Labeling is a display of information about a product on its
container, packaging or on the product itself.
Container:
Nestlé sachets are made of aluminum foil packing and boxes are
packaged by tin packs to giv e the product a long lasting shelf life.
Brand and logo:
The labeling, packaging includes the Nestlé brand name and logo which is
enough to attract the customer.
Brand Character:

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A blue colored teddy bear as a brand character is also tagged on the

container of Nestlé Cerelac.
Dates:
The packaging includes an expiry date and time along with a manufacture
date.
Quantity:
Second part of labeling includes the quantity of product in grams.
Ingredients:
Ingredients are also placed on the packaging for the convenience of

consumer to trust the product.
Recommendations:
Keep maintaining the quality as a competitive edge.
Increase advertising & show your competitive edge.
Increase loyalty of customer with brand through attractive packages and

extra features.
Try to target lower class too.
Increase its distribution network.
Give keen interest to CRM.
Increase incentives & promotional activities.
Training courses / workshops for team.
Conduct training sessions of salesmen at least once a month at regional

level.

79

79
Chapter NO.7
SWOT Analysis
SWOT ANALYSIS:
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 Strengths:
Quality Standard:
Every product of nestle is produced according to set of standards. So
manufacturing are the strength all the time processing in religiously
monitored at every stage.
Trusted for Brand:

Because of largest company in the world the people prefer nestle products to
be purchased and due to the strong brand image. For example when ever
people want to purchase their desired product, they just mention the name of
product.
Parent support:
Nestle has a strong support from its parent company, which is the world’s
largest processed food and beverage company, with a presence in almost
every country. The company has access to the parent’s hugely successful
global folio of products and brands.
High quality products
Brand strength:
In Pakistan, Nestle has some very strong brands like Nescafe, Maggi and
Cerelac. These brands are almost generic to their product categories.
Product innovation:
The company has been continuously introducing new products for its
Pakistan patrons on a frequent basis, thus expanding its product offerings.

79
 Weakness:
Exports:
The company’s exports stood at Rs 2,571 m at the end of 2003 (11% of

revenues) and continue to grow at a decent pace. But a major portion of this
comprises of Coffee (around 67% of the exports were that of Nescafe instant
to Russia). This constitutes a big chunk of the total exports to a single
location. Historically, Russia has been a very volatile market for Nestle, and
its overall performance takes a hit often due to this factor.
Supply chain:
The company has a complex supply chain management and the main issue
for Nestle Pakistan is traceability. The food industry requires high standards
of hygiene, quality of edible inputs and personnel. The fragmented nature of
the Pakistan market place complicates things more.
 Opportunities:

79
Fast Growing Field:
The best beverage for India in the new millennium seems to be water. In
recent years, the bottled drinking water market has been witnessing high
decibel level of activity, with a host of new entrants. The bottled water
market which worth Rs. 1000 crore is expected to be Rs. 5000 crore by
2010. This will increase a lot of scope for bottled water market.
Expansion:
The company has the potential to expand to smaller towns and other
geographies. Existing markets are not fully tapped and the company can
increase presence by penetrating further. With Pakistan’s demographic
profile changing in favor of the consuming class, the per capita consumption
of most FMCG products is likely to grow. Nestle will have the inherent
advantage of this trend.
Product offerings:
The company has the option to expand its product folio by introducing more
brands which its parents are famed for like breakfast cereals, Smarties
Chocolates, Carnation, etc.
Global hub:
Since manufacturing of some products is cheaper in Pakistan than in other

South East Asian countries, Nestle Pakistan could become an export hub for
the parent in certain product categories.
 Threat:

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Competition:
The company faces immense competition from the organized as well as the
unorganized sectors. Off late, to liberalize its trade and investment policies
to enable the country to better function in the globalised economy, the
Pakistan Government has reduced the import duty of food segments thus
intensifying the battle.
Changing consumer trends:
Trend of increased consumer spends on consumer durables resulting in

lower spending on FMCG products. In the past 2-3 years, the performance
of the FMCG sector has been lackluster, despite the economy growing at a
decent pace. Although, off late the situation has been improving, the
dependence on monsoon is very high.
Sectoral woes:
Rising prices of raw materials and fuels, and in turn, increasing packaging
and manufacturing costs. But the companies’ may not be able to pass on the
full burden of these onto the customers.
STRATEGIES FOR COMPETITIVE ADVANTAGES:

79
Every product on the shelf, every service and every customer contact helps
to shape this image. A Nestlé brand name on a product is a promise to the
customer that it is safe to consume, that it complies with all regulations and
that it meets high standards of quality. Customers expect us to keep this
promise every time. Under no circumstances will we compromise on the
safety of a product and every effort must be made to avoid hazards to health.
Likewise, compliance with all relevant laws and regulations is a must and is
not negotiable. People, equipment and instruments are made available to
ensure safety and conformity of Nestlé products at all times. The effort is
worth it. Companies with huge quality standards make fewer mistakes,
waste less time and money and are more productive. They also make higher
profits. Quality is our most successful product. It is the key to our success,
today and tomorrow.
The customer comes first:
We want to win and keep customers: distributors, supermarkets, hotels,

shopkeepers and the final consumers. They have very different requirements.
Trade customers expect excellent service, correct information and timely
delivery. Consumers consider taste, appearance and price when they make
their choice. Our task is to understand what customers want and respond to
their expectations rapidly and effectively. We serve various groups of
consumers and there is demand for products at different levels of perceived
quality and price. All customers, however, expect value for their money –
good quality at a reasonable price. When offering quality to customers we
also mean environmental quality. Nestlé shares society’s concern for the

79
environment and is committed to environmentally sound business practices

throughout the world.
Customers are central to our business and we must always respect their
needs and preferences.
Quality is a competitive advantage:
We live in a competitive world and must never forget that our customers
have a choice. If they are not satisfied with a Nestlé product, they will
switch to another brand. Our goal, therefore, is to provide superior value in
every product category and market sector in which we compete.
The pursuit of highest quality at any price is no guarantee for success, nor is
a single-minded cost-cutting approach. Lasting competitive advantage is
gained from a balanced search for optimal value to customers, by
simultaneous improvement of quality and reduction cost.
Success can never be taken for granted. We must watch and learn from our
competitors. If they do something better, we must improve our own
performance. We can achieve competitive advantage through Quality.
Quality is a joint effort:
Operating companies are fully responsible for maintaining agreed quality

standards. Not only Production units, but also Marketing, Purchasing,
Distribution and Sales have a vital role to play in providing quality to
customers.
This implies a thorough knowledge of the products and services we offer

Quality units at different levels of the organization provide specific support,
promote quality awareness, assume guardianship and audit the system.

79
Quality departments monitor operations against agreed standards and must

intervene in case of non-conformity.
Quality policy and principles, the mandatory standards and the

recommended tools for implementation are laid down in the Nestlé Quality
System that is applicable throughout the group. Further directions are given
through instructions, norms and guidelines, often specific to a product.
Our business products, such as raw material producers, packaging suppliers,

contract manufacturers and distributors are expected to share our concern for
Quality. They too must set up an adequate quality system, so as to meet our
requirements consistently. Every function and department in the company as
well as our business partners must share the quality efforts.
Quality is made by people:
Adequate equipment, procedures and systems are needed to make Quality;

so are involved and dedicated people. Each and every Nestlé employee must
do his best to provide quality products and services.
Training and teamwork are crucial to the successful implementation of high

quality standards. Continuous training ensures that everyone understands his
tasks and has the necessary skills to carry them out. Teamwork allows us to
achieve results that are greater than the sum of individual efforts.
We motivate employees by demonstrating management commitment to
Quality, by setting challenging goals and by giving them responsibility and
recognition. It is through employee involvement that goals and targets can

79
be achieved in the shortest time. Quality must be a way of life for everyone
in the company.
Quality is action:
Quality is the result of deliberate action. It is the responsibility of senior

managers to communicate the quality objectives and to provide the resources
necessary for their implementation. It is then up to all employees to make
Quality happen throughout the company. Progress is followed by listening to
our customers and by measuring our performance. Shortcomings and
mistakes must be analyzed and corrected. Problems must be anticipated and
prevented before they occur. We also must identify and take advantage of
opportunities.
To stand still is to fall behind. So we must strive for continuous
improvement in every area. It is through many small improvements as well
as through major breakthroughs that we will achieve excellence.
Chapter NO.8
Financial
Planning

79
Projected and Common size Income

Statement
Projected income statement:

79
Income statement also called Profit and loss statement. It is company’s financial
statement. That indicates how the revenue (money received from the sale of products and
services before expenses are taken out, also known as the “Top Line”) is transformed into
the net income (the result after all revenues and expenses have been accounted for, also
known as the “bottom line”).
Projected Income Statement:
Sales of 2010
No of unit sold=425/month
Price/unit =250/unit
Sales/year =425*12=4500*250=1125000
Sales of 2011
Sales/year =500*12=4800*250=1200000
Sales of 2012
Sales/year =540*12=4800*250=1200000
Sales of 2013
Sales/year =525*12=4980*250=1245000
Sales of 2014
Sales/year =532*12=5004*250=1251000

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Nestlé Pakistan Limited

Projected Income Statement
For the year ended on 31st December……..
Description 2010 2011 2012 2013 2014

Rs. Rs. Rs. Rs. Rs.
Sales 1125000 1200000 1200000 1245000 1251000
(-) C.G.S 800,000 700000 750000 700000 605000
Gross Profit 325000 500000 450000 545000 646000
(-)Operating Expense 200000 150000 160000 200000 180000
=Operating Profit 125000 350000 290000 345000 466000

(+) Other Income 90,000 80000 100000 85000 105000
= Profit Before Tax 215000 430000 390000 430000 571000
(-)Taxation (5%) (5%) (5%) (5%) (5%)
Profit After Tax 204250 408500 370500 408500 542450
Common Size Income Statement:
One very common and useful way of standardized comparison is to work

with percentages instead of dollars. So, a standardized financial statement
presenting all items in percentages is called a common-size statement.
Income Statement items are shown as a percentage of total sales.

79
Nestlé Pakistan Limited

Common Size Income Statement
For the year ended on 31st December……..
Description 2010 2011 2012 2013 2014

Sales 100% 100% 100% 100% 100%
(-) C.G.S 66% 64% 60% 58% 52%
Gross Profit 34% 36% 40% 42% 48%
(-)Operating 23% 22% 22% 25% 24%

Expense
=Operating 11% 14% 18% 17% 24%

Profit
(+) Other 10% 10% 15% 20% 20%

Income
= Profit 21% 24% 33% 37% 44%

Before Tax
(-)Taxation 10% 10% 19% 19% 19%

Profit After 11% 14% 14% 18% 25%
Tax

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Conclusion:
The food processing business in Pakistan is at a nascent stage. Currently,
only about 10% of the output is processed and consumed in packaged form
thus highlighting huge potential for expansion and growth. Traditionally,
Pakistan believes in consuming fresh stuff rather then packaged or frozen,
but the trend is changing and the new fast food generation is slowly
changing.
At Rs 604, the Nestle stock trades at nearly 25 times annualized 9mCY04

earnings and market cap to sales of 2.4 xs. The stock trades at a premium
valuation over peers owing to its superior growth and quality product
profile. Nestle is a leader in food processing in Pakistan and given the
opportunity of growth along with the parent’s keen interest in developing its
Pakistan subsidiary, the company is likely to continue being a dominant
force in the Pakistan FMCG space.

79
Bibliography:
Principles of Marketing 11th edition by Philip Kotler, Gary Armstrong
www.Scribd.com
www.Nestle.com.pk
www.Docstoc.com
www.About.com
www.google.com/images
www.Wikipedia.com
www.ImHalal.com

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MARKETTING

Department of Management Sciences

IN THE NAME OF ALLAH,

University of Education Okara Campus

In the name of Allah the most Beneficent

I dedicated all my efforts to

University of Education Okara Campus

This Professional Project of Marketing by Tahir

Date: ___________ Signature: __________

University of Education Okara Campus

All the praises and thanks to Almighty Allah for

Tahir Ahmad Nasim

University of Education Okara Campus

In this professional project analysis of new

University of Education Okara Campus

A project is a unique set of co-ordinate activities, with definite starting

And the one time effort is limited by

o Not done before.

The major characteristics of a project are:

1. Projects have defined objectives.

University of Education Okara Campus

University of Education Okara Campus

In 1905 Nestlé merged with the Anglo-Swiss Condensed Milk Company. By

University of Education Okara Campus

did Findus (1963), Libby's (1971) and Stouffer's (1973).

University of Education Okara Campus

History Nestle Pakistan Ltd.

Nestle Pakistan Limited (Nestle Pakistan) is a subsidiary of Nestle S.A.

The company also manufactures infant cereals, breakfast cereals, prepared

As a consequence of joint venture arrangement between Nestle S.A. of

The Milkpak Sheikhupura factory commenced operations in 1981 as a

University of Education Okara Campus

Nestlé’s success to make inroads in Pakistan is reflected in its strong

University of Education Okara Campus

The strategic priorities of Nestle Pak Ltd are focused on delivering

Nestle Pak Ltd envisions the company to develop an extremely motivated

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Good Food for Good Life.

Nestlé’s mission is to provide the best food to people throughout the

University of Education Okara Campus

At the threshold of this new millennium, Nestlé’s objective Is to

University of Education Okara Campus

Our focus is on products. The ultimate justification for a company is its

Nestlé makes clear a distinction between strategy and tactics. It gives

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Of course, our ability to focus on long-term considerations is only possible

Switzerland is home to Nestlé's Swiss subsidiary, its international

Our policy is to adapt as much as possible to regional circumstances,

This policy creates stronger motivation for Nestlé's executives and

A very important concern at Nestlé has to do with uniformity: how

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subsidiary, region, branch or group of products. In general, Nestlé tries to

Nestlé does not want to become either a conglomerate or a portfolio

NESTLE CORE VALUES

“The Nestlé global vision is to be the leading health,

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University of Education Okara Campus

NESTLE PAKISTAN PRODUCTS

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Milk, Dairy and Chilled Dairy

University of Education Okara Campus

Iron as an essential mineral helps in the formation of healthy blood and

Ranging from the morning wake-me-up, to getting through

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