A Project Report On NESTLE

Submitted To:
Rabia Sarfraz
Submitted By:
Hassan Rahim 21548
M Bilal 21544
Adeena Shaukat 21511

Lyallpur business school

Govt College University Faisalabad (GCUF)
Business Communication NESTLE

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Table of Contents Page No

Executive Summary .................................................................................................................................... 5
DEDICATION............................................................................................................................................. 6
1.0 Company profile.............................................................................................................................. 7
1.1. History.......................................................................................................................................... 7
1.2. Introduction ................................................................................................................................. 9
2.0 SWOT Analysis ............................................................................................................................. 13
2.1. STRENGTH .............................................................................................................................. 13
2.2. WEAKNESS .............................................................................................................................. 14
2.3. OPPORTUNITY ....................................................................................................................... 14
2.4. THERATS ................................................................................................................................. 15
3.0 Questions & Answers .................................................................................................................... 16
3.1. Product Strategy ....................................................................................................................... 16
3.2. Price............................................................................................................................................ 21
3.3. , Place ......................................................................................................................................... 21
3.4. Promotion .................................................................................................................................. 23
4.0 Learning Outcomes of Nestle ....................................................................................................... 26

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Letter of Memorandum

Date 7/5/2019

Faisal Akhtar Rana

Marketing services manager

Nestle Pakistan Ltd

Nestlé Pakistan Limited Head office

Lahore
(042) 111 637 853

Dear Sir,

I believe this opportunity will offer me additional challenges and an opportunity for
advancement as well as allow me to broaden my own experience and knowledge.

I want to take this opportunity to thank you for your time and efforts in my training and
advancement during the past time. The support and concern shown by you and the rest of
management team has been deeply appreciated.

My decision is final. Please do not consider a counteroffer. I am leaving for a career

enhancing opportunity. I wish to leave Nestle on good terms with no animosity. I wish all
the best of you.

Now I am working as leader of societies at Faisalabad university student Association.

Sincerely.

Hassan Rahim

M. Bilal

Adeena Shaukat

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Executive Summary

Nestle is undoubtedly one of the most proficient food company is not only in Pakistan but
all over the world. They make sure of the fact that the product of Nestle are definitely the
BEST TO USE. Nestle has an assortment of products to offer and they all are the best of
their types.
For this project our main concern was to study the strategies followed by Nestle in regard
to 4P’s of marketing. We got some information from internet about the overall history
and background of the company. About the other information we visited their Head office
and met there with Mr. Rouhan Nadeem (Management Trainee &Sale NP). It was quite
nice and well of him to provide us with all the relative information.
Now days for any company to progress in the market its marketing strategies are of the
supreme importance and that is the reason we opted for Nestle to try and cognize what
exceptional they were doing to maintain their top position in the market.
In Finding and Analysis we have described the marketing techniques observed at Nestle
and then also did our analysis on these observed techniques.
In the end we made some recommendation based on our analysis to make them improve
their overall revenue rate.

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DEDICATION

“We Dedicate this Project to our Parents,

Teacher and each group Member”.
Because;
 What ever we are it’s because of our parents.
 Without their love, none of this would matter.
 Our teacher makes us able to face different challenges and achieve
those challenges.
 Last but not least group members, who support a lot and contribute,
their full effort to make this project possible.
 Throughout my life, they love actively supported me in my
determination to find and realize my potential, and make this
contribution to our world.

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Chapter No.1

1.0 Company profile

1.1. History

Henri Nestle, born Heinrich Nestle on

10 August 1814 was a German who
immigrated to Switzerland.
In 1860’s Henri nestle developed the
first condensed milk and cereal based
infant food “FARINE LACTEE
HENRI NESTLE’’
(a dry mixture of cow’s milk, sugar
wheat flour)
His first product was lactogen formula
for infants by the name of “ Farine
Lactee” Figure1.1 Henri

He was founded FARINE LACTEE HENRI NESTLE in 1866.

In 1900 operating factories in the united states, Germany, Britain span.
World war 1 created new demand for dairy products in the form of government contracts.
By the end of the war, Nestle’s production had more than doubled.

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In 1905 Nestle merged with the Anglo-Swiss Condensed Milk

company.
In 1920’s saw Nestle first expansion with chocolate and second
most important activity.
The first half of the 1930’s proved to be favorable for Nestle: trade
barriers crumbled and world markets developed into more or less
integrated trading areas.

Figure 1.2 chocolate Nestle

Since 1996 there have been acquisitions including:

 San Pellegrino in 1997
 Spillers pet foods in 1998
 Ralston Purina in 2002
 Jenny Craig and uncle toby’s 2006
 Novartis medical nutrition 2007

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1.2. Introduction

NESTLE WORLDWIDE

Today, Nestle SA is the world’s

largest Food and Beverages
Company, and a global leader in
health, nutrition and wellness.
Through the headquartered in
VAVEY, Switzerland, we now have
487 factories dotted around the
globe, employing over 250,000
people in 86 countries.
Our products are available in almost
every country, and in 2005 our
global sales reached $73billion. Figure 1.3 Headquartered in VAVEY, Switzerland,

Employees more than 283000 people in working.

Offering more than 8500 brands and 10,000 products.

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NESTLE PAKISTAN

Nestle is operating in Pakistan since 1988.

Headquartered in Lahore at upper mall.
Two of its factories in Sheikhupura and
Kabirwala are multi products factories.
Nestle Pakistan now operates the biggest
milk collection operation in Pakistan.
Key focus on Nutrition, Health and
Wellness.
The company’s priority is to bring the best
and most relevant products to people.
Its respects the cultures of the countries and is committed Figure 1.4 Factory of Sheikhupura
to make contribution to the quality of life of people
Butter, cream, desighee under brand name MILK PAK
Juice drink under brand name FROST
1990 it start producing NIDO, Everyday CERELAC
1994 MILO and NESCAFE 3 in 1
1998 sweet treat (POLO)
1999 fruit drops, NESTLE PURE WATER
NESTLE fruita vitals
Focus on
- environment friendly operation
- ethical business practice
- our responsibility towards the communities

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LOGO

The Nestle logo was launched by Henri Nestle in 1868

on the basis of the meaning of his name in German, i.e.
little nest, and of his family emblem which featured a
single bird sitting on the nest.

Figure 1.5 NESTLE LOGO

SLOGAN

GOOD FOOD, GOOD LIFE

Figure 1.6 SLOGAN OF NESTLE

`

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Vision

 Nestlé’s global vision to be the recognized leading Nutrition,

Health and Wellness Company in this world.
 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.
 Nestle Pak Ltd envision the company to develop an extremely
motivated and professionally trained work force, which would
drive growth through innovation and renovation.

Mission

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

throughout the world.
 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 activates.
 Nestle is the best largest food company in the world. But,
more important to them is to be the world’s leading food
company.
Objective

 At the threshold of this new millennium, Nettle’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

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Chapter no.2

2.0 SWOT Analysis

Figure 2.0 SWOT ANAYLSIS

2.1. STRENGTH

 Nestle water is no.1 selling water in

Pakistan.
 Pure Drinking Water in market.
 Easy of availability to all over Pakistan.
 Company’s name Nestle specifies to
quality image high standards and quality
product.
 Company always adopt the new
technology.
 Strong brand name. Figure 2.1 STRENGTH

 Socially responsible company.

 Multinational
 High quality and strong R&D team.

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2.2. WEAKNESS

 Selective investment due to uncertain

economic and political condition.
 Lack of awareness among the target
market.
 Complex supply chain management.
 Too much product distracts from core
business.
 They need to improve the facilities like
chillers.
 Price of the Nestle is not very
economical.
 Less party orders due to high price. Figure 2.2 WEKANESS

2.3. OPPORTUNITY

 Pakistan is the 7th largest producer of milk

in the world.
 Credit policy can be adopted to increase
sale.
 They have the opportunity to offer snacks.
 Company can open separate stores to
eliminate retailers.
 Company can enter in ice cream products.
 Increase in product line.
Figure 2.3 OPPORTUNITY

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2.4. THERATS

 Taste of consumer is difficult to change there

is no entry barrier for new entrants.
 Global Image may harm all brands if one
brand fails.
 Inflation is getting higher and purchasing
power of people is decreasing.
 External environment.
 Some companies are competing on the basis
of cost.
 High trade offers by Aquafina & Kinley. Figure 2.4 THREATS

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Chapter No.3

3.0 Questions & Answers

Product, Price, Place, Promotion

3.1. Product Strategy

The product was launched due to certain reasons and problems faced by the government
and other factors. There are many areas in Pakistan where we will not find pure water but
the infiltrated water. Now the plant in under control of Nestle Pakistan Ltd. Nestle
launched its products by offering very useful ingredients like vitamins, calcium’ and
many other useful things which gives the human body more than the water

Product Line

A group of products that are clearly related because they function in a similar manner are
sold to the same customer groups, are marketed through the same type of outlets or fall
within given price ranges.

Product Mix of Nestle

Nestle is a well-known company all over the world and Pakistan. The company basically
deals in food product as their logo says “GOOD FOOD, GOOD LIFE”.

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Products/ Brand of Nestle

I. Ambient Diary
II. Juices
III. Bottled/ Pure Water
IV. Coffee
V. Confectionery
VI. Nestle Original Yogurt

I. Ambient Diary

One in three Pakistani children is iron deficient,

placing them at risk for impeded mental and
physical development.
NESTLÉ BUNYAD believes that healthy
children have a greater chance at succeeding in
their academic.
NESTLÉ BUNYAD’s mission to strengthen the
children of Pakistan by eradicating iron deficiency, for a happier, Figure 3.1 NESTLE BUNYAD
brighter future. In its mission for a stronger Pakistan, NESTLÉ
BUNYAD empowers mothers everywhere to give their children a strong foundation for a
better future.
NESTLÉ BUNYAD is fortified with Iron and Vitamin C, so that two glasses daily help
fulfil 60% of a child’s Guideline Daily Amounts.

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II. Juices

Nestle Fruita Vitals

NESTLÉ FRUITA VITALS is a brand

that inspires the world to be more positive
and encourages people to celebrate the
positivity around them because every day
might not be good but there is something
good in every day.

NESTLÉ FRUITA VITALS Premium

range is currently available in Chaunsa,
Red Grape, Apple, Kinnow, Pineapple, Guava, and Peach. Figure 3.2 NESTLE FRUITA VITALS
While NESTLÉ FRUITA VITALS Super Premium range is available in Red Anaar that
offers the perfect blend of super fruit.

III. Bottled/ Pure Water

Pakistan is the proud birth place of the NESTLÉ

PURE LIFE brand as this is where this
tremendously successful global brand was first
launched in 1998. Today, NESTLÉ PURE LIFE is
among Nestlé’s billionaire global brands.
NESTLÉ PURE LIFE takes pride in being the
leading player in the bottled water market, globally as well Figure 3.3 PURE LIFE WATER as
in Pakistan. It offers its gentle and smooth taste for the whole family.

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Range of Products:

 NESTLÉ PURE LIFE is available in the following formats:

 0.33 Liter Fit Bottle
 0.33 Liter Hero Bottle
 0.5 Liter
 1.5 Liter
 5 Liter
 12 Liter (Karachi only)
 18.9 Liter (Home and Office Delivery)

IV. Coffee

NESCAFÉ

Five thousand cups of NESCAFÉ are drunk around the world

every second, and every cup enjoyed provides our consumers
with an opportunity. In our ever more busy and pressured lives we
can easily lose perspective and stop appreciating the simple and
wonderful things that happen all around us.

Figure3.4 NESCAFE

V. Confectionery

KITKAT is our no.1 global brand in confectionery and the

greatest asset in our portfolio. A perfect balance of 70%
milk chocolate and 30% wafer & praline; the success of
KITKAT over the years is due to an unbeatable
combination of consistently high product quality and best-
in-class product distribution.
Figure3.5 CONECTIONERY Kit Kat

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VI. Nestle Original Yogurt

NESTLÉ ORIGINAL Yogurt the daily dose of delight;

making your everyday experiences more exciting through its
irresistible rich creamy taste and pure dairy goodness. Packed
by Nestlé, the dairy expert, it guarantees to perfectly
complement your everyday meals with its best tasting,
hygienically packed with consistent quality & traditional taste

Figure3.6 NESTLE YOGURT

Competitive Analysis:

Nestle Pure Life Aquafina

 Largest Market Share  Low Manufacture
 Pure water with vitamins  Mineral water (Chemicals)
 Availability of Nestle water  Availability of product us
in easy. difficult.

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3.2. Price

Profit Earning:
Profit earning is the main objective of every company but in case of nestle their
profit margin is low. Only a few amount of profit is collected from pure life water.

Customer Satisfaction:
In nestle pure life price is not fixed by keeping in mind profit motive, only
customer satisfaction is kept in mind while fixing the prices.

Strategies For Price:

Price = cost + profit.
And other pricing is strictly compline.

3.3. , Place

Most of the sales and revenues for Nestle come from European countries. It is almost 90
percent of the total sales. Typically, they follow a channel of distribution. It is a kind of
warehouse where these products are kept. From there, it sent to distributors and then to
retailers. Now, consumers can buy the products through retailers with the help of these
two products, they can easily move their other product The main challenge comes in the
distribution of chocolates as there are stronger players in the market.

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I. Distribution
II. Channel Distribution

I. Distribution

Distributer Wholesaler Retailer Consumer

According to the distribution, Pakistan is divided into three geographical zones and then
in further Regional Sales office:

North zone
 Islamabad
 Peshawar
 Jhelum
Central zone
 Lahore
 Faisalabad
 Multan
 Gujranwala
South zone
 Karachi
 Hyderabad
 Quetta
 Sukker

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II. Channel of distribution

Nestle pure life is making efforts to supply its product to ultimate consumers. For this
purpose, the company uses the conventional marketing channels of distribution to supply
the product. Which retailers also take supply from directly company resources without
contact with whole sellers.

3.4. Promotion

Promotion Strategy

Advertisement is a tool to introduce the product in the market. To increase sales and build
image in the mind of consumer company advertise their product in different ways, as for
as Nestle pure life water concerned company use:
 Television
 Radio
 News paper
 Bill board
 Hoarding etc.

Sometime company also makes free sampling, held stalls at different programs like
Health Mela. In the advertising they show emotional feelings to their customers. They
have always tried to push their brands to the consumers

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Sales Promotion Strategy

Personal Selling:
A direct vendor selling activity was coordinated and carried out during the summer
month of June, July and august 1999 in Lahore. A team of vendors, clad branded t-shirts,
caps and jackets. Sold chilled 0.5 liters bottles to travelling customers on all major
intersections.

Publicity:
Nestle pure life was launched on 14 December, 1998 in Karachi with a huge
amount of enthusiasm and positive response shown by the locals. The successful
story of its lunch was printed in all the local newspaper in the next day.

Sales Promotion:
Specific promotion of Nestle pure life water arranged in some of the key outlets of
Lahore.

Public Relation:
As far as the public relations are concerned, the organization release as annual
report which includes the company’s financial statements along with the sales of
all product categories

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Sponsorship

 Sports
 Whole Foods Market
 State Farm
 Pepsi
 US Bank
 Bank of America

Positioning

We will position our products as a high quality product consumer focused. Message like:
“Who knows your taste better than us”.
“Nestle ice-cream now at your door step”.
“Add additional flavors’ to your life”.

Positioning Strategy

There are some competitive advantages or important attributes of Nestle pure life
drinking water, occupying in consumer’s mind relative to competing mineral water are as
fellow:

Pure Drinking Water:

Nestle pure life is only drinking water product in the market. Their competitor is selling
mineral water which contain extra chemicals which are harm full for human body.

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Nestle Logo & Family Brand:

Pure life use Nestle brand name and the logo of nestle pure life is also showing family
care to consumer which is enough to attractive consumer.

Chapter No. 4

4.0 Learning Outcomes of Nestle

I was appointed a meeting with M.M of Nestle for project work. When I was going for
meeting with M.M I feel relax and happy because I want to something practical in this
field. When I started conversion with M.M meeting. I felt little anxious about question
answer section which asked from manger but manger is gives the answer in a good way
and friendly talk. The meeting was good I learn a lot of things from this meeting

 A learning organization is the term given to a company that facilities the learning of
its members and continuously transforms itself. It encourages organization to shift to
a more interconnected way of thinking.
 Latest technology used in Nestle makes its employees more learning, and make the
organization a learning organization.
 Learning is part of the Nestle culture. Each employee, at all levels, is conscious of the
need to upgrade continuously his knowledge and skill. The willingness to learn is
therefore a non- negotiable condition to be employed by Nestle.
 Knows that increasing numbers of people want healthier foods.
 Understand how and why market focused companies (e.g. Nestle) respond to such
developments.
 Know about Nestle: its size, its products and its worldwide reputation.
 Nestlé’s overarching principle is that each employee should have the opportunity to
develop to the maximum of his or her potential

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Conclusions

 Nestle is one of the world’s leading food companies and intends to remain so.
 Nestle has almost tried all the strategies to expand internationally, and now they
helped economic to grow.
 The main purpose of nestle working together is that the communities which are
serving Nestle should prosper in long term.
 Its commitment to high quality market research ensures that it remains fully aware
of changes in consumer behavior and consumer tastes.
 Its packaging good.
 We can easily find Nestle from any retailer shop.
 It has always maintained the quality of its products.
 Behavior of employees is not professional and every employee should be equally
behavior.

Recommendation

 Keep to taste pleasant.

 Keep the cost low.
 Increment loyalty of client with bran through magnetic bundles
 Use increment motivators to motivate their employees.

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