GROUP MEMBERS

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HAFZA AYESHA SIDDIQA (11-EE-045)

FAZAL KAMAL (11-EE-037)

SYED ARSALAN ALI KAZMI (11-EE-132)

FATIMA IDREES (11-EE-036)

TABLE OF CONTENTSIntroductionMission StatementProductsCountriesNestle in PakistanFactoriesCurrent Strategic ApproachCultural WebPorter’s 5 Forces analysisSWOT AnalysisSuggestionsConclusionReferences

INTRODUCTION

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• “Nestlé” is a Swiss-German word which means “Little Nest” which is its trademark

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• Nestlé is the worlds’ number one food company

• 5th largest world’s company according to its turn over

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• 2 million 31 thousand people employed from all over the world and present in 81 countries of the globe having 522 factories

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• Over 700 products renovated or inno-vated in the past five years, with well-ness in mind

MISSION STATEMENTGood

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”.

PRODUCTS

Baby Foods

Break-fasts

Cereals

Bever-ages & Bottled Water

Choco-late &

Confec-tionery

Dairy Prod-ucts

PRODUCTS (Cont....)

Food Ser-vices

Ice Cream

Pre-pared Foods

Pet care &

Phar-maceu-ticals

Cos-metics

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COUNTRIES■ Bangladesh■ China■ Hong Kong■ India■ Indonesia■ Iran■ Israel ■ Japan ■ Jordan ■ Kazakhstan ■ Kuwait ■ Lebanon ■ Malaysia

■ Pakistan ■ Philippines ■ Republic of Korea■ Saudi Arabia ■ Singapore■ Sri Lanka■ Syria■ Taiwan ■ Thailand ■ United Arab Emirates ■ Uzbekistan ■ Vietnam

Total 81 countries

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NESTLE IN PAKISTAN

Nestlé MilkPak Limited (NML) was incorporated in Pakistan under the Companies Ordinance, 1984 & listed on Karachi and Lahore stock exchanges since 1980.

Joint venture between Nestle Switzerland and MilkPak Limited came about in 1988.

Nestlé Pure Life was launched in Pakistan in 1998

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FACTORIES

Karachi Islamabad

Sheikhupura Kabirwala

FOURFactories

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CURRENT STRATEGIC APPROACH

Nestlé believes that leadership is not just about size; it is also about behaviour. Trust, too, is about behaviour; and we recognise that trust is earned only over a long period of time by consistently delivering on our promises. These objectives and behaviours are encapsulated in the simple phrase, “Good Food, Good Life”, a phrase that sums up our corporate ambition.

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Nestlé Roadmap to Good Food, Good Life

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CUTURAL WEB

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For Nestle...

•Most famous food company in Pakistan•For a usual customer nestle depicts qualityPARADIGM

•Nestle uses the same symbol world wide which is a part of there marketing strategySYMBOL

•Controls more than 70 of world bottled water brandsSTORIES

• Daily production of a wide range of products.• Launching new products every once in a year

RITUALS & ROUTINES

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Cont....

• Striving to dominate the global water market of the future

POWER STRUCTURES

• Must follow the standards determined by WHO.• Headquarters in Switzerland.

CONTROL SYSTEMS

• Matrix Organizational structureORGANIZATIONAL

STRUCTURES

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PORTER’S 5 FORCES MODEL

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(i) Threat of New Entrants : LowNestlé, the has been around in Pakistan for decades and boasts a long history of quality products and consumer satisfaction, which has allowed the company to obtain a considerable share of the market.

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(ii) Threat of Substitute Goods: HighDue to the nature of the industry, Nestlé is best with the threat of substitute goods. From bottled water to milk-based products, there are arrays of similar products that compete directly with Nestlé.

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(iii) Bargaining Power of Supplier: HighNestle is known for strong relations with the suppliers around the globe due to its immense buying power and also because of the fact that in such dairy and agricultural products quality is always important. Nestle cares of its suppliers which in return pays them off in the form of quality products

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(iv)Bargaining Power of Customers: HighCustomers carry huge quantity of bargaining power concerning their utilization of different Nestlé products.

(v) Competitive Rivalry within the Industry: LowNestle has a very strong position in the food processing industry but few major rivals do exist in the industry.

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SWOT Analysis

STRENGTHS

WEAKENESSES

OPPORTUNITIES

THREATS

Brand nameR&D departmentUnique features and technologies 40 & 60% test result criteria

Less consumer researchin few areas

Market expansion byusing bio-technology

Baby milk

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Strengths: Brand image.

Innovative marketing strategies.

Easy to approach outlets.

Quality products.

Strong research and development department.

Growing sales and profits.

Major shareholder in the food industry of Pakistan.

Strong distribution networks.

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Weaknesses:

The target market of Nestle products is upper middle and high class because lower middle and poor class cannot afford to buy Nestle products due to its premium price compare to other companies like Shezan etc.

It is a main weakness of Nestle products that there are different companies which provide substitutes of Nestle products but the name of Nestle products is always stand in the last because of low advertising and marketing.

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Opportunities:

☼ Nestle have opportunity to expand their product line like tea etc☼ They can introduce more health-based products, and because they

are a market leader, they would likely be more successful.☼ Transition to a "Nutrition and well-being" company.☼ Nestle can make itself as social company.☼ Company can open separate stores for eliminating retailers.

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Threats:

Price fluctuations due to rupee devaluation as raw material are imported.

Effect of Seasonality’s upon sales. Inflation is getting higher and higher so the purchasing power of the

people is decreasing day by day. Major Player may enter target market Legal and ethical issues. Market segment growth could attract new entrants. Main competitors Shezan, Olfrut, Maza and Haleeb are main threat

for Nestle juices especially the Shezan is growing very fast.

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SUGGESTIONS

Bonus packages and increment in salaries for a selective level of work and efficiency should be awarded to attract the employees’ concern.

Staff should be made more responsible by implementing strict rules and regulations and taking disciplinary actions against any un-professional behavior.

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CONCLUSION

Nestle is a market leader due to different reasons:

Its price is high against its competitors but it matches its quality with its competitors.

Its packaging is good. We can easily find Nestle from any retailer shop.

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REFERENCES

• http://www.passionpk.com• http://www.slideshare.net• http://www.nestle.pk/• http://www.authorstream.com

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