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Acknowledgement

Above all we are thankful to Allah Almighty. We really liked our respected resource persons Mr.Farooq (Manager of

Product Development Of Nestle Juices) & Mr.Tahir (Human Resource Manager) at nestle ,and thanks them for their full

command on the subject and unconventional talking way and highlighting the issues.

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Table of ContentsAcknowledgement..............................................................................................................................1

1 Summary......................................................................................................................................3

2 Introduction.................................................................................................................................4

2.1 About Company...................................................................................................................4

2.2 Vision and Mission Statement............................................................................................4

2.3 Milestones of Nestlé Pakistan.............................................................................................5

2.4 Nestle factories in Pakistan.................................................................................................5

2.5 Fruita Vitals Juices..............................................................................................................5

2.6 Benefits described by company:.........................................................................................6

3 Problem Statement......................................................................................................................7

3.1 Research Methodology about Problem..............................................................................7

4 Fish-Bone Analysis......................................................................................................................8

5 Nestle Fruita Vital Juices Production System..........................................................................9

5.1 Actual Process Analysis.......................................................................................................9

5.2 Production Process in Use of Fruita Vital Juices............................................................10

6 Identify problem & prioritized problem.................................................................................11

6.1 Interviews...........................................................................................................................11

6.1.1 Interview #1 with manager of product development of Nestle Juices.........................11

6.1.2 Results of Interview.....................................................................................................11

6.1.3 Interview # 2 with the HRM........................................................................................13

6.1.4 Findings of Interview...................................................................................................13

6.2 Results.................................................................................................................................13

7 Process Addition as Solution in Nestle Fruita Vital Juices Production Flow Chart..........14

8 Solutions.....................................................................................................................................15

9 Conclusions................................................................................................................................16

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1 Summary

This report analyzes the issues related to taste problem

in orange Fruita Vital juice of Nestle Foods.

In this detailed project we have covered almost the topics related to the marketing plan of “Fruita Vitals Juice “(a product of Nestle). First of all we presented

the companies’ history and introduction which included the year of formation and certain steps resulted in the today’s form of Nestle. To identify problem we used

Fish-Bone analysis and then problem have been identified in machine and process. We described the

interviews of the two persons related to Nestle and then the solutions to problems.

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2 Introduction

2.1 About CompanyHere below is the some information about the company and its history:

Nestlé foods was established in 1867 by brothers George Page and Charles Page The world’s largest food company performing on all the five continents It is running about 500 factories in 75 countries employing over 220,000 workers

globally Nestlé has been serving Pakistani consumers since 1988, the Switzerland-based Nestlé

SA, first acquired a share in Milkpak Ltd Has decentralized system in the factories but supply chain management is centralized

regarding head of orders and factory production controller Have easy working management office environment Employee have interaction with each other in that departments

“We are free enough to work freely and interaction with other employee e.g., like if I had a business then I cannot give close interaction and decision to business as I am interacted to the company environment with interaction of other department”.1

2.2 Vision and Mission Statement

Vision

The Nestlé global vision is to be the leading health, wellness, and Nutrition Company in the world. Nestlé Pakistan subscribes fully to this vision.

Mission Statement

NESTLÉ to be the “Beverage Wellness Champion” offering consumers healthy and refreshing pleasures of life through a variety of premium juices and nectars”

1 Saying of Mr.Farooq during interview

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2.3 Milestones of Nestlé Pakistan The milestones of Nestlé’s company in Pakistan are shown below in the table:

YEAR MILESTONE

1912 Begins its relationship with south Asia (milk company start importing and exporting in India.

1979 MILKPAK Ltd. is founded by Syed Babar Ali. It manufactures UHT milk, cream and butter, as well as fruit juices.

1981 Production of long shelf-life UHT milk begins at MILKPAK Ltd.’s Sheikhupura factory.1988 Nestlé SA acquires a 40 percent share in MILKPAK Ltd.1990 The Sheikhupura factory starts the production of NESTLÉ NIDO milk powder and cereals.

A new plant is acquired at Kabirwala in the Punjab.1992 Nestlé takeover company & Maggi noodles plant installed.1996 MILKPAK Ltd. is renamed Nestlé Milkpak Ltd.1997 The Kabirwala plant becomes a fully owned unit of Nestlé Pakistan Ltd.1998 NESTLÉ PURE LIFE bottled water launched in Pakistan.2001 Nestlé Pakistan acquires the Fontalia and AVA water companies for the delivery of its

water.2004 Afghanistan becomes the fourth sales zone of Nestlé Pakistan Ltd.2005 Nestlé Milkpak Ltd is renamed Nestlé Pakistan Ltd.

2.4 Nestle factories in PakistanThe locations, year of establishment and the products which have made by specific sectors:

Location Establishment ProductsSheikhupura

1988 Milkpak, Nesvita, Nestlé Pure Life, Cerelac , Nido

Kabirwala 1997 Maggi Noodles, EverydayIslamabad 2003 Ava Water Factory

2.5 Fruita Vitals JuicesNestle change its juices brand name as Nestle Fruita Vitals. This is due to many new entrants in the juices product category.

They introduced due to consumer variations not only in taste, rather also in the western lifestyle. It is available in many flavors like

OrangeApple NectarRed Grape NectarPineapple Nectar

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Chaunsa NectarGuava NectarMango, andOrange Mango drinks.

2.6 Benefits described by company:Nestle Orange Fruita Vital is

Low in caloriesRich in fiber and vitamin cIt is the most beneficial drink for health in place of all other juices. Equally good for the health of a diabetic patient as it contains no added sugar.it can be used as an anti-oxidant which reduces the factor of aging Strengthening the body’s resistance against infections and diseases.

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3 Problem Statement

Fruit juice production procedures involved in fruit juice manufacturing depending on what type of the juice the unit is going to make. For the purpose of this -feasibility, we propose the 4% token juice drink of citrus fruit like orange, Mango and pineapple.

In last two year after re-launching of Nestle Fruita Vital juices people showed interest to buy their juice products but orange juice sales declined with period. After survey and feedback from customer it have been concluded that problem is the taste of Fruita Vtal Orange juice. Taste of product was like medicine or odor taste of it.

3.1 Research Methodology about Problem

To solve this issue in the Fruita vital orange-juice we will analyze the whole production process of these juices. If needed we will use the Fish-Bone analysis to cover problem and its identification. After identification of problem we will recommend solution that can end or reduce this problem in the orange-juice taste.

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KARACHI: Nestle has announced that it is re-launching its Fruita Vitals in a premium prisma packaging format, which it says is being done for the first time in Pakistan.According to a press release, Fruita Vitals is a range of premium juices and nectars, is prepared using the finest fruit and made under stringent quality standards.It is available in flavours such as apple, red grapes, orange, pineapple, mango chaunsa, guava and peach and the company is planning to introduce new flavours. PRESS RELEASEPublished in The Express Tribune, April 30th, 2011.

Press Release about Re-launch

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Sour/ Odour taste of Fruita Vital Orange

Juice

Management

Process

Man Method Raw Material

Measurement Machinery

Feedback response

Wrong Inspection

Product Improvements

Team Work

Communication Gap

Motivation

Deterioration

Knowledge about Quality

Lack of Training

Inappropriate method

Mixing methodMixture of pulp

Flavours

Spoiled Oranges

Mixing of Raw material

Ingredient

Wrong Process

Wrong process for product

Calibration of equipment

Storage Problem

Boiler problem

Information about

Measurement Method of Inspection

Cycle time

Wrong Product

On –time Maintenance

Repairing

Technology

Mixing of Oils

1 Fish-Bone AnalysisAfter Fish-Bone analysis for problem we concluded that there could be problem with Machinery/ Equipment or with Process. To find detail about both we have observed actual and in-use process for production of Fruita Vital juices and interviews of Product Manager & Human Resource Manager.

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4 Nestle Fruita Vital Juices Production System

Production of fruit juices is a standardized process and initial preparatory processes for all fruit will be similar, as will be the last stages of juice/pasteurization section and packaging, although differences in handling juice composition arise in certain cases due to the nature of the fruit and percentage of vitamin involved.

4.1 Actual Process Analysis Basically, preparation standard process of juice involves the following steps:-

Boiling of fruit Storage in tank Ingredients mixing Syrup storage in the tank Juice preparation Juice storage tank Filling and packaging Cooling and storage

Fruit boiler where it is cooked and shifted to the plate heat exchanger. Then stored in the storage tank. Then supplied to the mixing tank in the desired quantity while in mixing tanks; any additives to the are made at this stage before it pumped to syrup storage tanks. Blended juice is then pumped through pasteurizer; where it is heated to 90˚C to inactive enzymes and living organism. After pasteurization the juice passes through final filtration, before loading it into a juice storage tank. Juice from the tank is ready for packaging.

Packaging and labeling then storage

The juice will be then packed in the quantities demanded by the market. Consumer packs as like 200ml and 1000ml tetra pack and then label the nestle juices. Product will be in cool dry store.

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4.2 Production Process in Use of Fruita Vital JuicesHere below is the production process of Fruita Vital juices from raw material to the finished goods;

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5 Identify problem & prioritized problem

To identify problems related to Fruita Vital we visited Nestlé Sheikhupura factory on the Lahore-Sheikhupura road; we conducted the interviews of managers related to the product. Here below are the interviewer’s information and the finding from the related interview.

5.1 Interviews

We have the two interviews; one was with Mr. Frooq & second was with Mr. Tahir.

5.1.1 Interview #1 with manager of product development of Nestle Juices

Name Mr.Farooq

Designation Manager of Product Development Of Nestle JuicesDate Thursday, January 12, 2012Location Product Development Department Nestlé Sheikh-U-Pura Factory

5.1.2 Results of Interview

It is due to the outer layers of oranges. Company has profiles of different juices products. In those profiles they have the ingredients information. Plants are of that type which crushes the orange outer lay with the mixture of pulp. Oranges have 3-4 types of oil during that process. Peel oil, Phase oil from the outer surface of oranges and Pulp also has an oil, produced during the pressing and distilization of oranges in the plants. They separate these oil from orange pulp processing unit and after adding the artificial flavors and some ingredient transfer that types of oil relating

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to product about 10-20 percent. These oils have some taste regarding the product which results the sour taste of product like medicines. Factory stores pulp in the season of winter in the cold storage which have the ability to store that pulp of oranges.

They told that they have complete relation to marketing department but they didn’t relate any issue in the decline of sales relating to that product according to satisfaction of consumers. It may be due to the mismanagement of the persons at the plants which stores the oranges stock because it has a time of ripping these fruits when have the right tastes of pulp.

Fruita Vitals Orange juice is in the category of juices which have the differentiation from other products of same fruit like oranges category has Nectar and Drink but different quantity of pulp in that flavor or packaging.

Here comes a problem that people have not awareness between the product differentiations between nectar, juice and drink.

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Orange Plant

Nectar

oranges but with a 25-99

% content and usually with added

sugar

Juiceprepared by

always 100 % fruit juice but not have pulp

Drink

contain 0-24 % juice content

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5.1.3 Interview # 2 with the HRM

Name Mr.Tahir

Designation Human Resource Manager

Date Thursday, January 12, 2012Location Nestle Hr Department Nestlé Sheikh-U-Pura Factory

5.1.4 Findings of Interview

Company has the decentralized system in the factories. They told that company order come from the head of managing cell which after production also distribute the goods to suppliers. All departments have their own issues and solution to them. This made an easily to handle the whole system in that department and every department has own budget to settle down and to look financial matters.

5.2 ResultsWe concluded few results from the interviews that, what are main problems in the taste of Fruita Vital juices? Which are due to:

Plant & its supervisorMarketing department information to product development department regarding product improvementsStorage issue regarding pulp of oranges that changes the taste with the passage of timeIngredients are given on the pack while juice is 100% pureNeed promoting advertisements and campaigns to create awareness among the people so that they can differentiate products of Fruita Vitals to others

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6 Process Addition as Solution in Nestle Fruita Vital Juices

Production Flow Chart

After analyzing the fishbone reasons we have solution to this problem by the addition of a process which is named as Oil addition or separation tank.

Oil addition is necessary because oranges have it some nature sweet taste oilsOil extraction is necessary because oranges external layer have sour taste oils

Addition of oil and extraction of it will depend how company add nutrients and some other oils. Here addition of process will result the exclusion of taste and the problem will be removed.

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7 Solutions

After defining and prioritized problems, we derived the solution for them

Nestle can import the new plant which didn’t include the outer surface of oranges during mesh of fruit, because taste problem mainly due to the mixing of it into the pulp of orange although pulp of oranges already are soars and to improve the quality of ingredients which are being used to add artificial flavors

Although Nestle has the better internal environment of factory other than any companies in Pakistan. This is really ethical company and having decentralization structure but there is little bit need to improve these departments to create more reflationary step within company or factory.

Storage of pulp is another issue to oranges pulp. As the season of orange fruit is winter (Sep-Feb). To store these orange is the only one way which is storage in the form of pulp. This need storage machinery to control cooling temperature and other suitable conditions, through which it can be keep fresh and healthy.

To create awareness Nestle should arrange the advertisements related to Fruita vitals and to create difference from Nesfruita and its drinks it should arrange the campaigns.

Nestle Nectar Nestle Juice Nestle Drink

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8 Conclusions

After the whole process we concluded that there is problem in the process and the process is having issue of oil mixturing which include the addition of oil in the juices. They just need to add new process of oil separating and editing machine.

Nestle Fruita Vitals has certainly gotten active on right time. Nestle overall performance is good and to develop the products it should make R&D and ads or campaigns at place of target segment (youth ,university) to satisfy about the product taste and to develop it.

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