Product Life Cycle of Nestle PakistanSubmitted By:

Muhammad Amir Mushtaq(EX-MBA-Fall12-058)

What is Supply Chain Management

Supply chain management (SCM) is the process of planning, implementing and controlling the operations of the supply

chain as efficiently as possible.

Identification of Target Products

Value Stream Mapping

• Value stream mapping is a lean manufacturing technique used to analyze and design the flow of materials and information required to bring a product or service to a consumer.

• Value Stream Mapping at Nestle:

• Short Expiry Stocks Handling• Contracts with Metro Cash n Carry

Gap Analysis• GAP analysis stands for identification of GAPS in the operational strategy

of a company in the market, which a company can be capitalized upon. This means that the difference of what customer wants, and what company is giving. The remaining portion is termed as a GAP.Following are the gaps in the operational strategy of Nestle.

• Lack of Diversity in the UHT Milk Range. For example Haleeb has two Brands, Haleeb and Gro Aur, Engro Foods has Olpers and Dairy Omung.

• Lack of Interest in Liquid Tea Whiteners as a Competitor to Tarang and Tea Max.

• Lack of Interest in Fat Based Products for Example Salted or Plain Butter.

Application of Kraljic Matrix

Strategies for PLC Improvement• Controlling the Length of Life Cycle Phases:• Just as people go through infancy, childhood, adult hood and

old age, so too do products and brands. And just as we swing from being needy, to being overall contributors to our families or to society, and then back to being needy again over the course of our lives, so – in effect – do products.The four phases usually used to describe a product's life cycle are:

• Introduction• Growth• Maturity• Decline

Strategies for PLC Improvement

Controlling the Length of Life Cycle Phases:• Increasing the amount of the product used by existing

customers (this is why food producers issue recipe cards that use their ingredients).

• Adding or updating product features.• Price promotions to attract customers who use a rival

brand.• Advertising to encourage trial of the product people who

don't use this category of product at all.

Value Chain Analysis• Value Chain analysis consists of Two set of activities.

1. Primary Activitiesi. In Bound Logistics.ii. Operationsiii. Out Bound Logisticsiv. Marketing

2. Supporting Activities.

Proposed Business Model

Benchmarking

Benchmarking

Operational Strategies

The corporate strategy of Nestlé Pakistan is growth. The operational strategies of Nestlé in Pakistan are as follows:

• Consumer communication• Product availability and development• Quality strategy• Branding strategy• Differentiation strategy• Positioning strategy• Marketing Mix Strategy

Implementation• Following is the Implementation Plan of Porters Five Forces Model.

Thank You

Q&A