ai

GIFT UNIVERSITY Gujranwala

Project :MARKETING RESEARCH ON NESTLE MILK PACK

Submitted By:

Submitted To:

SIR SHOAIB UL HAQDate: 04jJune/ 2007

TABLE OF CONTENTS

A C K N O W L E D G E M E N T

First, we pay our thanks to GOD Almighty, who made us able to complete our task.Our kind teacher SIR SHOAIB UL-HAQ has always remained supportive to us, throughout our report. Her guidelines have been beneficial to us and who taught us so well that we were in such a position to work for the project with our own work.

We pay our compliments to all those persons who are cooperative to us in the completion of this project and who directly or indirectly helped us in completing our project

EXECUTIVE SUMMARY

INTRODUCTION AND BACKGROUND OF COMPANY

The joint venture between Milkpak Ltd. And Nestlé S.A. came about in 1988 and the

company was renamed as Nestlé Milkpak Ltd. Prior to that, Milkpak Ltd., produced

UHT milk, butter, cream, desi ghee and fruit drinks at Sheikhupura factory. 21 branded

product lines were added during 1990 to 1998.

Nestlé Milkpak operates the largest and an extremely efficient milk collection system in

the country, which enables it to collect the highest quality milk for production of UHT

and powder milks as well as other milk based products. The company voluntarily

provides extension services of farmers in the area of animal husbandry and livestock

breed improvement.

Nestlé Milkpak entered the export market in 1993 with exports of Rs.3.2 million to

Afghanistan. Growing steadily over the years, its exports stood at Rs.321 million by June,

1998. Currently, it's overseas markets include the UAE, UK, USA, Sri Lanka, Malaysia,

Bangladesh, Afghanistan and Central Asian States.

In the social sector, the company provides over 1,100 job opportunities for skilled,

unskilled and professional manpower. It plays a remarkable role in vitalizing the rural

economy by disbursing over Rs.1.37 billion annually against milk purchases, benefiting

over five million household members of the dairy farmers.

In line with its universal commitment, Nestlé Milkpak fully complies with its

responsibilities forwards the protection of the environment. By making available the

processed and packaged dairy products to consumers

Nestlé is one of the largest packaged milk producers and sellers in Pakistan, with an

exceptionally strong supply chain. It has operations and factories throughout the world. In

addition, the firm dominates the Pakistani bottled water market as well. With Pakistan’s

continued population growth coupled with increased levels of urbanization and increased

health awareness, we expect packaged milk sales to continue growing strongly.

Furthermore, given the likely exit of some competitors from the packaged milk sector,

strong growth in water based revenues, lower costs from lower milk prices and

operational efficiencies from the company’s new computer system, we project a CAGR

of 17% in Nestlé’s profits over the next 5 years on the back of an 18% CAGR in the

firms revenues. The quantity of milk collected increased by over 12%, while the quality

improved considerably, thanks to the substantial investments made in chilling lines over

the last years. We employ around 250,000 people and have factories or operations in

almost every country in the world.

In Pakistan, the Company’s core business is milk products. Over the past few years,

Nestlé’s prime concern has been to improve the quality and volume of milk for UHT

processing and for milk based products. Driven by its commitment to quality, the

Company successfully established its own collection system and expanded its operations

over a very large milk shed area is Punjab. Today, Nestlé Milkpak can boast of the largest

milk collection network in the country, unmatched in size, productivity and efficiency.

PROBLEM IN NESTLE MILK PACK PAKISTAN

The main problem is nestle milk pack is this that’ there is a very tough competition in the milk industry and due to this there sale is becoming low

MISSION: -

“Good food good life”

"Nestlé is the largest food company in the world. But, more important to

them is to be the world's leading food company. One of the ways that they

measure leadership is through financial performance. This section enables

you to measure their progress as they seek continually to improve their

returns."

VISION: -

Explore all over the worlds-from baker to babies, parents to pet owners

single servings to catering: providing for all their needs always with the

assurance of outstanding quality.