1 History of the Nestle

Nestlé headquarters in Vevey.

The company dates to 1867, when two separate Swiss enterprises were founded that would

later form the core of Nestlé. In August of that year, Charles A. and George Page, brothers

from Lee County, IL in the United States, established the Anglo-Swiss Condensed Milk

Company in Cham. In September, in Vevey, Henri Nestlé developed a milk-based baby

food and soon began marketing it. In the succeeding decades both enterprises aggressively

expanded their businesses throughout Europe and the United States. (Henri Nestlé retired

in 1875, but the company, under new ownership, retained his name as Farine Lactée Henri

Nestlé.) In 1877 Anglo-Swiss added milk-based baby foods to its products, and in the

following year the Nestlé company added condensed milk, so that the firms became direct

and fierce rivals.

Henri Nestlé.

In 1905, however, the companies merged to become the Nestlé and Anglo-Swiss

Condensed Milk Company, retaining that name until 1947, when the name Nestlé

Alimentana SA was taken as a result of the acquisition of Fabrique de Produits Maggi SA

(founded 1884) and its holding company, Alimentana SA of Kempttal, Switzerland.

Maggi was a major manufacturer of soup mixes and related foodstuffs. The company’s

current name was adopted in 1977. By the early 1900s, the company was operating

factories in the United States, United Kingdom, Germany and Spain. World War I created

new demand for dairy products in the form of government contracts; by the end of the war,

Nestlé's production had more than doubled.

After the war, government contracts dried up and consumers switched back to fresh milk.

However, Nestlé's management responded quickly, streamlining operations and reducing

debt. The 1920s saw Nestlé's first expansion into new products, with chocolate the

company's second most important activity.

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Nestle Quality Policy

Quality is the foundation of our food, nutrition, Health and Wellness Company.

A Nestle brand name on product is a promise to the customers that :

It is safe to consume.

It complies with all relevant laws and regulation.

Quality is to win consumers trust and preference.

We are committed to offering products and services to all customers that meat their

needs.

Quality is every body’s commitment.

Our management takes the lead, sets the objectives and demonstrates its

commitment towards quality.

All Nestle functions across our value chain are fully responsible to follow

mandatory norms.

Quality is to strive for Zero defect and no waste.

We focus on facts and results and we strive for Zero defect and excellence in every

thing we do.

We adopt “No waste” and we constantly look for competitiveness and

opportunities for continuous improvement of the quality standards delivered to our

customers.

Quality is to Guarantee, food safety and full compliance.

We enforce food safety, regulatory and quality requirements in every step of our

value chain.

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2 Business of the Nestle

Nestle is the largest food company in the world. It is present in all five continents, has an

annual turnover of 74.7 billion Swiss Frances. There are 509 factories are running in 83

countries, having 231,000 employs

Company Mission

 

At Nestle, we believe that research can help us to make better food, so that people

live a better life.

Good food is the primary source of good health, so we are trying to make good food.

To provide fresh and pure products to the customers, we introduced (SHE) Safety, Health

and environment policy to protect health of our employs and keep clean our surrounding

environment

Company Vision

 

Vision of Nestle Milkpak Company is to expand business according to the

increasing demand of market.

As per our company vision in 2020 production capacity of all plants working in

Pakistan is being increased.

2.1 Industry/Sector

Nestlé is conscious of the fact that the success of a corporation is a reflection of the

professionalism, conduct and the responsible attitude of its management and

employees. Therefore recruitment of the right people and ongoing training and

development are crucial.

Nestlé continues to maintain its commitment to follow and respect all applicable

local laws in each of its markets.

• Our products are manufactured in five facilities scattered around the

country, from Islamabad in the north, to Karachi in the south.

• Two state-of-the-art multipurpose factories are located in the agricultural

heartland of the Punjab, and the remaining three are dedicated to producing

our trusted brands of bottled water.

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• As citizens of Pakistan, we consider it our duty to make sure that our

manufacturing processes are clean, hygienic and safe.

• We are constantly working to reduce emissions at our factories, reducing

and treating wastewater, and making our packaging environmentally

friendly. Regular audits have confirmed that our factories' environmental

management meets the Nestlé international standard.

• As is the Nestlé policy around the world, we care for our people. We

uphold the principles of the UN Global Compact and encourage women to

participate.

• In 1990, Nestlé Milkpak acquired the Kabirwala factory, located in

Khanewal district of the Punjab, as a subsidiary. By 1997 it was a fully

owned unit of Nestlé Pakistan Ltd.

• Soon after it was acquired, we began upgrading its capacity. In 1992 we

added a MAGGI® Noodles plant was added and 1996 saw an additional of

a milk powder.

• Over the years, the Kabirwala factory was constantly enhanced. NESTLÉ®

EVERYDAY® tea whitening powder was introduced in 2002 and

revolutionised tea and coffee drinking in homes and offices around the

country.

• In 2005, the factory continued to make notable achievements.

• 2006 has seen the commencement of Kabirwala Extension Project that

would be completed in April 2007 at a cost of about Rs. 4.0 billion. The

project has seen expansion of milk processing capacity to triple its current

size, both for powder and liquid.

• In 2001 we acquired the AVA® water factory in Islamabad. It became a fully

owned unit in 2003, and we immediately instituted a programme of major

improvement to bring the facility on par with international standards.

• Over the years, better and more efficient machinery has been introduced. This has

helped us speed up production, and provide our consumers with their favourite

brands of bottled water in convenient package sizes.

• We are proud that the Islamabad factory has made efforts to bring Pakistani

women into the workforce, by providing a comfortable and enabling work

environment.

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2.2 Scope of Trade (National/International)

Pakistan is an agricultural country. According to Ministry of Food, Agriculture and

livestock, agriculture accounts for 20.9 percent of the GDP. Dairy industry contributes

49% to the agriculture value and 11% to the GDP. Annual production of milk is 35.25

Billion liters in the country; But the Processed milk is only 4% of the total production.

Like other countries Dairy is not a dedicated profession of the people, farmers is

associated with dairy and agriculture at the same time, Profitability for the farmers is very

less. Infrastructure is not developed, cooling tanks and other facilities are not available,

and the large part of milk production is wasted. There is a multi-hierarchal distribution

system of the milk; the farmers are not getting reward of their work. All these factors are

making this industry unattractive for the farmers and the industry is no developing up to

mark.

 Only 4% of the total milk production is processed and used in urban areas of the country.

Nestle Milkpak have a great share in the different multinational companies. It is

statistically calculated that Nestle Milkpak have 50% share in the Nestle company and

now Nestle become the leader of all multinational companies in food products and

beverages. Nestle is operating in all big cities in Pakistan and try best to provide its

Products to other small cities and towns.

According to Pakistan Dairy Development Authority

3 Management Procedures

The executive board, a distinct entity from the board of directors, includes:

Paul Bulcke , Nestlé CEO

John J. Harris, EVP, Chairman, and CEO of Nestlé Waters

Frits van Dijk, EVP of Asia, Oceania, Africa, Middle East divisions

Petraea Heynike, EVP of Strategic Business Units and Marketing

Francisco Castañer, EVP of Pharmaceutical and Cosmetic Products, Liaison with

L'Oréal, Human Resources

Michael Powell, EVP of United Kingdoms Division

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James Singh, EVP of Finance, Control, Legal, Tax, Purchasing, Export

Luis Cantarell, EVP of Europe divisions

Richard T. Laube, Deputy EVP of Nutrition Strategic Business units

Werner J. Bauer, EVP of Research and Development, Technical, Production,

Environment.

Current members of the board of directors of Nestlé are: Peter Brabeck-Letmathe

(chairman), Paul Bulcke, Andreas Koopmann, Rolf Hänggi, Jean-René Fourtou, Daniel

Borel, Jean-Pierre Meyers, André Kudelski, Carolina Müller-Möhl, Steven Hoch, Naïna

Lal Kidwai and Beat Hess. The Secretary to the Board is David Frick.

Joint ventures

Nestlé holds 26.4% of the shares of L'Oréal, the world's largest company in cosmetics and

beauty. The Laboratoires Inneov is a joint venture in nutritional cosmetics between Nestlé

and L'Oréal, and Galderma a joint venture in dermatology with L'Oréal. Others include

Cereal Partners Worldwide with General Mills, Beverage Partners Worldwide with Coca-

Cola, and Dairy Partners Americas with Fonterra.

3.1 Organization Structure of the Organization

Product & Services offered by the OrganizationNestle Pakistan has being at the forefront of development of dairy sector in Pakistan as

major industrial stake holder for a while .internal efforts and some initiatives with

government have being going on since long in order to maximize the development of the

sector .still, a need for sector wise coordination and combine efforts was there to ensure

utilization of all available resources to move forward in the direction.

Through the agric-services department nestle has being involved with various

infrastructure and support related initiatives such as development of model farms, setup of

milk chiller and import of Australian cow to boost milk production .nestle is also working

towards setting up mega dairy farms to exemplify best farm practices and ways to boost

mike production

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4. Product & Services offered by the Organization

 

Nestle Good Start Gentle Plus Powder Formula, 50 Cans $459.99

Nestle Hot Cocoa Mix, Rich Chocolate, No Sugar Added, 8-Count Envelopes

Coffee-Mate French Vanilla Non-Dairy Creamer, Shelf Stable,

Visit Store NESTLE NES70821 Coffee CSN Office

Visit Store Baby Ruth 24 X 2.1 Oz Baby Ruth 24 X 2.1 Oz

Visit Store Bit-o-Honey, 1.7 oz 36 ct Bit-o-Honey, 1.7 oz 36 ct

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6 Pack-32 Oz. Cans/ Nestle Good Start...

Nestle Milk Chocolate Bar 24ct

Nestle Cerelac Trigo con Leche

Nestle GOOD START Supreme Infant...

NESTLE ... NESTLE NES24300

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NESTLE ... NESTLE NES94100 Wonka

Nestle Hot Cocoa Mix, Rich Chocolate,...

Nestle Nips Candy Coffee 4 oz

Nestle Aero Dark 24 X 42g Bars

Nestle Dark Raisinets Chocolate...

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Brand Name of Each Product & Service Offered

Nestle Juices

Nestle Nesvita

Nestle yogurt

Bottled Water

Chocolate

Baby Food

Maggi noodles  

Nescafe   

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At Nestlé, our chief commitment is to our consumers, and we make every effort to make

sure that their voices are heard.

When Henri Nestlé prepared his first boxes of infant formula for sale, he put his address

on the packages. Today, our Consumer Relationship Panel exhorts people to "Talk to

Nestlé", expressing the same belief in openness and accessibility.

Our consumer services department is staffed by experts in every area related to our

products and wellness, and is poised to provide prompt and relevant service to our

consumers.

We believe that consumer services requires us to talk to consumers and also, above all, to

listen to them.

Only by listening to what people say can we understand what they want and need. Only by

understanding their needs can we serve our consumers to the fullest.

Transaction Details Frequency,

amount and timing of purchases,

items bought,

prices paid,

Use of cash or credit.

Acquisitions Details Marketing channel,

Promotion type, and

Address/city.

Brand Ambassadors of Organization/Products

June 18, 2008 (Sawf News) - Nestle has dropped Bollywood star Rani Mukerji as brand

ambassador for its chocolate brand, Nestle Munch, because she has ceased to be a youth

icon.

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Rani had endorsed the product for the last four years, and featured in many Television

commercials promoting the brand.

A few months earlier, Rani was dropped from Fanta commercials, and replaced by rising

South star Asin, Aamir Khan's Ghajini co-star.

A top PR official of Nestle India, based in Gurgaon, talked to us on condition of

anonymity.

"Our contract with Rani Mukherjee was due to get over and we were in the midst of

planning new marketing strategies for our brand. It is then that we decided that we won't

be renewing our contract with her," the official told us. "Our new strategies include

targeting the youth and Rani ceases to be any kind of a youth icon anymore. Her films

haven't really worked out at the box office and we are looking out for someone who is

very popular in this category. We are working out on a few options and a final

announcement shall be made very soon."

A source close to Rani confirmed the development, telling us, "Rani is extremely

disappointed by Nestle's unprofessionalism. They knew well that once the contract came

up for renewal, Rani would increase her price. They wanted to go in for someone cheaper

perhaps. They should be thankful that Rani has got their product noticed in last four

years."

Nestle's action seems to reflect the film industry's perception that Rani is no more the box

office draw that she once was.

Rani's stock in the industry has dropped following the poor box office response to her

recent films like Saawariya (2007), Laaga Chunari Mein Daag (2007), Ta Ra Rum Pum

(2007), and Babul (2006). She is also perceived to be too closely aligned to the Yash Raj

Films banner by other filmmakers.

Even her 'friends' in the industry are not ready to bet on her anymore.

When Kajol vacillated over signing up for My Name is Khan, the film's producer and

director, Karan Johar, a close friend of Rani, surprised industry watchers by announcing

that he would go with Kareena instead, even though Rani comes through as a more natural

Kajol replacement.

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5. Human Resource Development PoliciesHR is dedicated to our employees, and ensures that we have all the right people with the

right skills, in the right places at the right time.

Understanding that our people are the bedrock of all our business strategies, it is our

mandate to enhance their skills with cutting-edge training and provide them with world-

standard facilities.

We select flexible, innovative people who are ready to confront new challenges and make

a difference. Our groundbreaking Management Trainee Programme aims to develop

talented young men and women and help them achieve their potential in a dynamic and

enabling environment.

Over a hundred people travel out of the country every year to take advantage of our

international training and development events

5.1 Recruitment & Selection Procedures

Employees, people and products are more important at Nestl頴 han systems. Systems and

methods, while necessary and valuable in running a complex organization, should remain

managerial and operational aids but should not become ends in themselves. It is a question

of priorities. A strong orientation toward human beings, employees and executives is a

decisive, if not the decisive, component of long-term success.

5.2 Training & Development Procedures

There are a number of ways you can join us. We like to recruit people into real jobs, and

when a position becomes available, we will select the best person for it. Our recruitment

and selection practices and procedures are transparent, fair, and comply with legal

requirements.  Making use of selection panels that are utilised for all vacancies ensures

transparency. The persons involved in the selection panels fairly represent a diverse group.

Management Trainee ProgrammeIf you're young, bright and hard working, the

Management Trainee Programme may be the place for you.We hire fresh graduates as

potential managers to develop new competencies and skills through on-the-job

development.You'll be hired in one of various departments at inductee level on a 12-month

training programme. Once you've completed the programme, you will be assigned

independent responsibilities supporting the company's business needs. We begin sourcing

Management Trainees in January. Preliminary interviews and screening is organised

according to the graduation schedules of Pakistani and foreign universities, and are

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followed by interviews with senior management.If you have any queries about the

Management Trainee Programme, and drop us an email!InternshipsInternships are a great

way to apply the knowledge and skills you are developing at university and get experience

in a leading corporation. We offer project-based internship positions in various

departments at Nestlé Pakistan.You may be hired as an intern at various points during your

academic career: during undergraduate study or graduate school. Most internship

assignments are offered during the summer months and generally run for 6 to 8 weeks. At

the end of the internship you will be required to submit a project or programme report to

the company on the topic assigned to you at the beginning of the internship programme. If

you impress us with your talent & hard work, you may be considered for employment

opportunities after you have completed your studies.Please contact us if you have any

queries about our internship programme.               

6. Marketing Strategy

Our mission is to:

·     Optimise and consolidate resources and processes for a low-cost but efficient

·     Develop and manage simplified and effective supply network to achieve a high

level of service

·     Create a continuous improvement culture driven by performance measures and reward

Today, Nestlé Milkpak produces in over 81 countries and achieves 98% of its turnover

outside Europe. Nestlé milkpak is the world’s largest milk company, which does 98% of

its business. It has an annual turnover of 70 billion Swiss francs, 522 new factories in 81

countries, 200 operating companies, 1 basic research outer and 20 technological

development groups, has more than 231,000 employees and more than 8000 products

around the globe. There are three companies co-ordinate the activities of some 200

operating companies around the globe. Their functions and details are as follows: The

first, Nestlé milkpak, holds the financial shares in the allied companies. It also checks the

profitability of these companies and to ensure the profitability of the group as whole.

The second, Nestlé milkpak, has two areas of activities that are as follows:

Research and technological development,

Technical assistance Beside this, it provides know-how in engineering, marketing,

production, organization, management and personnel training on a continuous

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basis. The third company is Nestlé World Trade Corporation that oversees the

import and export of merchandise worldwide.

Market segmentation and target strategy including consumer profiling

It is really a big market and it is always difficult to segment the big market. There are

many uses for segmentation.

Needs Based Segmentation

Milk Pack has made different sizes of tetra packs which can match the needs of buyers,

ranging from 0.25 liters to 1.5 liter. Buyers can buy according to there need between these

quantities.

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Product Segmentation

Manufacturers diversify products within each needs base to appeal to buyers with different

tastes and wealth.

6.1 Integrated Marketing Communication (IMC)

Company have a complete imc plan in which they that how can the

company will inform their consumer about the new, upcoming product and value added

services to the existing product. The sources which can use by the company to inform

their consumers are print, electronic as well as through their websites.

As a mother you want the best for your child and almost always *worry about his/her

health. But are you completely sure if your child is getting sufficient nutrition for his or

her good health and development?

Many of you may not be so sure. Children between 1 to 3 years of age experience rapid

growth and strong height and weight gains making their nutritional requirements unique.

That's why we have NESTLÉ NESLA, growing-up milk for children 1-3 years of age.

NESTLÉ NESLAC provides the right vitamins and minerals in the right proportions that

your little one needs at this particular age.

NESTLÉ NESLAC is available in Honey flavour and is enriched with the right balance of

Protein, Iron, Calcium and Multivitamins to help give your child a strong and healthy

foundation for life!

Market Positioning:

They will position our product as a high quality product consumer focused. Messages like

“They knows your taste better than us”, “Nestle Milkpak now at your door step”; “Add

additional flavors’ to your life” will help us portray our picture clearly and distinctly.

Milkpak will position our product against the competitors and gain competitive advantage

through our efficient promotional methods, using innovations, and by reaching closer to

our target market through the arrangement of events like BASANT, VALENTINE DAY

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and etc. In short consumers will view us as a product providing highly quality, in terms of

taste, customer focused and, at the same time reasonably priced as compared to others.

6.2 Market ShareNestle steps up efforts to grow market share

THE difficult operating conditions across the fast-moving consumer goods (FMCG)

industry have affected sales performance of some products of Nestle India last fiscal.

Though the company says that it has maintained its market share in most of the product

categories by taking a few measures, including managing input costs and price points,

improving distribution network as well as market penetration and making more effective

use of its supply chain, sales of some key products remained below expectations in 2004.

Take for example liquid UHT (long shelf-life) milk. The Nestle India Chairman, Mr

Martial G. Rolland, said in the latest annual report that the market performance of this

product has been below expectations and a full review is being undertaken. And even as

Maggi noodles continue to have the highest sales volume in India, among all Nestle

companies, Maggi sauces have performed below expectations during 2004 due to

aggressive competition, he added.

Milkmaid Sweetened Condensed Milk did not perform as per plan, and Mr Rolland said

the company is taking corrective action to improve the performance of Milkmaid Squeezy.

Similarly, in confectionery, Nestle Chocostick is being reviewed, even as the company

said products such as Nestle Milkybar Eclairs, Nestle Eclairs and Polo lozenges have

performed well.

In the recent past, Nestle has been reviewing the performance of Milo Chocolate Energy

Food Drink and it launched Milo with `Badam Shakti' in select cities of Tamil Nadu

during last fiscal. The Chairman said performance of the new variant is being monitored.

Among the products that continue to perform well from the Nestle stable are Nestle

Munch and Nestle Kitkat chocolates, Nescafe instant coffee and Everyday Dairy

Whitener.

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7. Financial Procedures

An employee in Finance & Control ensures we make financially sound business decisions

to meet our long-term profitability goals. Nestlé is a financial leader in the consumer

products industry and one of the few firms around the globe with a AAA credit rating.

We're looking for employees with strong analytical and communication skills, a

willingness to embrace change and the discipline to meet financial standards.

7.1 Methods for Raising Funds

Ambika Cotton to issue pref shares to UTI venture fund

A VENTURE fund promoted by UTI Asset Management Company has forayed into

textiles account by choosing to invest in the Coimbatore-based Ambika Cotton Mills Ltd

(ACM), a known name in the premium segment cotton yarn production and exports.

ACM's board of directors early this week decided to issue 8.75 lakh shares to UTI

Investment Advisory Services Ltd, trustees of the UTI's venture fund `Ascent India Fund',

through preferential issue route. Ambika Cotton will give the preference shares at a

premium of Rs 175 per share (of face value of Rs 10 each) and the company stands to mop

up Rs 16.18 crore from the preferential issue to buttress its capital base.

To facilitate the preferential share allotment to the UTI, the ACM's board has also decided

to raise the company's authorised capital from Rs 5 crore (50 lakh equity shares of Rs 10

each) to Rs 10 crore (one crore equity shares of Rs 10 each).

The Managing Director of the ACM, Mr P.V. Chandran, told Business Line that his

company had chosen the preferential issue route for its least cost proposition to strengthen

its capital base, which is required to meet company's expansion project. He said an extra-

ordinary general meeting of the members of the company has been called on May 14 to

seek the shareholders approval for the preferential allotment.

These investments would also result in enhancing the company's turnover from the present

Rs 86 crore to Rs 160 crore on completion of the projects. Ambika Cotton is eyeing

Europe and the US as emerging markets for its yarn exports.

As per the present shareholding pattern of ACM, of the 50 lakh equity shares, the

promoters and their close relatives/associates hold 34.51 lakh shares.

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8. Major Competitors in the MarketINTERNAL COMPETITORS

Haleeb Milk

Olpers milk

Good Milk

Dairy Queen Milk

EXTERNAL COMPETITORS

DANONE

MILUPA

 COMPETITORS ADVANTAGES

We never compromise on quality and quantity

Our extensive milk collection system ensures that the Milk you get is of the finest

quality.

Our products are available in every city and town

9. SWOT Analysis

One opportunity that Nestle has is that health-based products are becoming more popular

in the world, including in the United States. Consumers are becoming more health

conscious, and realize that living longer isn’t only by luck and genetics. LC1 has not been

introduced in the United States yet. Nestle also has an opportunity of being even a larger

market leader in Germany with LC-1. Within two years of launching the product in

Germany, they had captured 60% of the market. This was due to the fact that they

differentiated the product, and Germans simply preferred the taste. Another opportunity of

LC1 is that, because they are a market leader, they can introduce more health-based

products in Germany.

A threat to Nestle is the fact that some markets they are entering are already mature.

Danone had an established leadership position in the yogurt market in France. Since

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Danone was the first to arrive in the market, they have always been the market leader

there. Also consumers in France liked the taste of LC-1, but researchers believe they did

not repurchase the yogurt because they preferred the taste of Danone products better.

Another threat to Nestle is that there is intense competition in the United States yogurt

market. General Mills’ Yoplait division is the leader in the yogurt market in the United

States. Yoplait has been the leader for years and is constantly innovating new health

products.

General Mills has been a strong competitor of Nestle and they are not short of experience

and strength. One strength that they have is their brand recognition. One of their main

goals has been to deliver brands that consumers trust and value and they have succeeded.

Another strength they have is their distribution. Yoplait is distributed to more stores in the

United States than any other brand of yogurt. This is one of the reasons why they have

been the market leader in yogurt for so long. Another strength that General Mills has is the

fact that consumers simply know Yoplait is healthy. Yoplait is the only leading brand of

yogurt to offer vitamin D and this vitamin is especially important for adult women.

(Yoplait.com) It is not just a coincidence that Yoplait has vitamin D, but they have

purposely added this vitamin to target female consumers.

General Mills also has some weaknesses. They fact that they are the market leader in the

United States may be hindering them from innovation. They have been producing Yoplait

yogurt for many years, and have offered a series of new products in the past few years in

the nutrition department. Most of these products however, are very common, and are

widely offered in the United States. The health food industry in the United States has been

booming and General Mills does not offer enough products in the smaller niche markets.

They have not entered into many unknown areas because of their success in the yogurt

market.

An opportunity General Mills has is that its Yoplait division is so successful. Yoplait is the

only division of General Mills that is currently earning a profit. They have a large market

share over their main competitors in the yogurt market. Another opportunity that they

share with Nestle is that the health-based and nutritional food market is booming. They are

continually releasing and marketing new products in these markets and they will continue

to do so while the market continues to yield profits.

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The main threat that challenges General Mills is that there is intense competition amongst

the top players in the yogurt and related markets. Nutrition and health is becoming more

and more important to consumers in the United States, and worldwide. Along with this

comes increased competition to gain market share. Simple supply and demand theories are

prevalent in these markets. Another threat General Mills has is that smaller companies are

producing similar products with the same or added nutritional benefits.

Strengths

Skilled labor.

Educated staff.

Large number of offerings.

Pre purchase virtual display.

Arrangement of events.

Good background of the company.

Easy to approach outlets.

Physical evidence Strong Brand image

Quality product

Solid Financial position

Strong supply chain network

Qualified work force

 Commitment to High Quality Products

Focus on research and development Estimations of UHT Milk Production and

Consumption up to 2008– 09

Year Annual Production

(million liters) Annual Consumption

(million liters)

2008-09   => 648.43 353.71

2009-10 =>  753.89 372.05

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Weaknesses

Physically impossibility to have target market.

There is weak marketing of Milkpak as there is no advertisement of Milkpak on

official website.

Lack of awareness among the target market.

It Dependency on others (govt. & sponsors) for the arrangement of events. The

target market of Nestle Milkpak is upper middle and high class because lower middle

and poor class cannot afford to buy UHT milk due to its premium price.

It is a main weakness of milkpak that there are different companies of milk but the

name of nestle milkpak is always stand in the last because of low advertising and

marketing.

Opportunities

Increasing interest of people

31billion customers are there in Pakistan for milk. Upton now only 4 billion

customers are being facilitated.27 billion customer markets is still available to be

penetrated.

Few and weak competitors

Estimations of UHT Milk Production and Consumption up to 2008– 09

Year Annual Production

2008-09  => 648.43 353.71

2009-10  => 753.89 372.05

The projected values of UHT Milk consumption and production are obtained from

the ARIMA model.

More people are coming towards processed milk because loose milk is dangerous

for health due to a lot of contamination.

Growth of processed milk is increasing with 20% annually so Nestle Milkpak has

the opportunity to capture a large share of market.

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Threats

Major player may enter target market

Legal and ethical issues.

Market segment growth could attract new entrants.

Economic slow down can reduce demand. Two main competitors Haleeb and

Olpers are main threat for Milkpak especially the Olpers is growing very fast.

Inflation is getting higher and higher so the purchasing power of the people is

decreasing day by day.

There is no entry barrier for new entrants as the Olpers has come in the market.

Taste of consumer has already developed which is hard to change

10. Conclusion

Problems Faced By Nestle

Nestle is facing the problem that is regarding the quality of mill . it is being perceive that

infant or child belonging to poor family who use low quantity of milk then required in

daily use are getting effected.

It is hard to agree the customer to swich to pack milk because of taste which is huredel for

further expansion

Recommendations

Nestle must state in writing that it accepts that the international code and the subsequent

relevant World Health Assembly Resolutions are minimum requirements for every

country.

Nestle must state in writing that it will make required changes to bring its Baby Food

Marketing policy and practice into line with International Code and Resolutions.

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11. References

www.nestle.com › Mediawikipedia.org/wiki/Nestléwww.foodanddrinkeurope.comwww.foodnavigator.comwww.Google.comwww.shareinfoline.comAsk.comsharekhan-firststep.com

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