PowerPoint Presentation

Nestle Pakistan ltd.2nd Seminar

GROUP MEMBERSSAGARAROONMANZOOR MEMONJUNAID SOOMROERUM SHAIKH SHAKEELAANJUM NADEEMMEHWISH

CURRENT BRANDS OF NESTLE PAKISTAN

Ambient DairyNestle milk packMilk pack creamNidoNestle everydayNesvitaChilled DairyNestle yogurtNestle rivayati mazaNestle acti plusNestle milk pack yogurtNestle zeera raitanestle poodena raita

CURRENT BRANDS OF NESTLE PAKISTAN (contd.)BOTTLED WATERNestle pure lifeCulinary & FoodMaggi noodlesBABY FOODCerelac Breakfast CerealsNestle koko crunchNestle milo cerealNestle corn flakesNestle fittnesse

CURRENT BRANDS OF NESTLE PAKISTAN (contd.)COFFEENescafe classicNescafe 3 in 1Nescafe gold

ConfectioneryNestle crunchKit kat

Current Brands of Nestle

Current position of nestleEmployees 339 000Nestle is operating in 197 countries3,500 milk collection centers in Pakistan.Sales = 96.457 million PKR(2014) operating profit 14.113 million PKR (2014)Net income 7.93 million PKR (2014)98% of Nestle childrens products met all of the Nestl Nutritional Foundation criteria (a) for children at the end of 2014.Nestle is ranked one of the top 3 global food and beverage manufacturers in the current Access to Nutrition Index.Remained one and only infant formula producer.

Market Share of NESTLE and its Competitors

Infant Formula scandalbiggest ever scandal of nestleWomen were not aware that how to use this formulaFilthy waterBabies were dying.Syed Amir Raza exposed the scene (Chemicals, immune system)A Bollywood movie is also made on this issueTigers (Emran Hashmi)

PROBLEMS With Nestle PakistanAbility to Pay current liabilities is decreasing

Cause: It is because Increase in Current Assets is less as compare to Increase in current liabilities (increase in C.A= 2.6%, Increase in C.L= 54%)Current ratio (2013)= 99.64%Current ratio (2014)= 66.26%So these facts are showing that Nestle Pakistans ability to pay current liabilities is decreasing and it is very threatening for them.Source= Annual report (2014) of Nestle Pakistan

PROBLEMS With Nestle PakistanRisk of the Nestle Pakistan has been increased but it does not increased their profit as compare to debt

Cause: Debt to equity ratio (2013)= 1.59Debt to equity ratio (2013)= 3.09

Source: Annual report (2014) of Nestle PakistanDebt-equity ratio: T.L/T.A

PROBLEMS With Nestle PakistanCertain products namely: Desi Ghee, ButterScotch and creamare not generating much revenues for the company.

Less advertisement budget.

Packaging issue with Nestle bottled water.

PROBLEMS With Nestle Pakistan (Contd)Child Labor issue in supply of cocoa-beans.

Nestle Pakistan has various distributors in all over the Pakistan. Some of these distributors are un-necessary which are increasing the cost of the company.

Current StrategiesMarket Development.

Product Development.

Concentric diversification.

Conglomerate diversification.

Horizontal diversification.

Cost cut strategies.

Proposed StrategiesBackward Integration(for cocoa-beans).

Forward integration.

Market penetration.

Proposed Strategies (Contd)Improve packaging of nestle bottled water.

Decrease prices of bottled water.