BALOCHISTAN UNIVERISTY OF INFORMATION TECHNOLOGY, ENGERNING & MANAGEMENT SCIENCES (BUITEMS)

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BALOCHISTAN UNIVERISTY OF INFORMATION TECHNOLOGY, ENGERNING & MANAGEMENT SCIENCES (BUITEMS)

Project report On

by Mohammad Danyal Khan CMS ID: 20299

presented to

department of management SCIENCES

ACKNOWLEDGEMENTSIn the Name of Allah most Merciful and Beneficent

I am very thankful to Almighty Allah who enables me to be able to utilize my abilities as it is known that all the abilities and skills we have is a Gift of Allah, and Allah gave me the courage and insight to explore more knowledge to complete what I have started. And also our parents whose prayers always supported us in every task. In making this project come into existence., I am guided by my experienced Sir: Mohammad Ali I am thankful to him who gave me the opportunity to be able to work on the project and who helped and guide me how to overcome the problems regarding my project and He motivated me to be able to complete this difficult task.THANKS.

EXECUTIVE SUMMARY Nestle is one of the best food companies not only in Pakistan but all over the world. The Members working in the Organization are concern about developing the high standards in the Market. They basically focus on making sure that there products are best to use. Now, in making this Project my main focus is to study all the strategies followed by the Nestle Company. Which are centered on 4Ps of marketing. I got the information from different resources where most common is the Internet. Through Internet I got the overall history and background of the company. I have covered all the main aspects of the Project. In the competitive market today a companys marketing strategies are of great importance and this is the reason I have chosen this company because of its well-known reputations. Moving through the overall companies Vision, Mission, and Business Philosophy and covering all the main aspects of the project and then at last I have given references from which sources I got this information and be able to complete the project.

Table Of ContentsS.No.Topic NamePage No.

1. Organizations Introduction04 - 05

2. Vision, Mission and Core Values 06 - 07

3. Competitive Advantage07-08

4. Competitors08-09

5. BCG Matrix09-10

6. Products & Services10-13

7. Marketing Mix14-16

8. Suggestion for improvement16-16

9. References17-17

Introduction Nestle Company founded in 1866 by Henri Nestle in Vevey, Switzerland, the company then expanded globally. It has over 280,000 employees and has different factories and sales operations all over the world. More than 140 years the company is following the principles of honesty, fairness and long-term approach which make them to be able to stand in one of the most competitive markets in the world.

Mission:-

As we see towards the history of the Nestle Company we see that Henri Nestle is the Founder of Nestle Company. As the company continued its growth so they also develop new plans and strategies focusing on their Mission Statement which is Good Food, Good Life. These are not just Simple words there is a meaning of Existence of the Nestle Company which describes the purpose of companies existence.That is they focuses on making an influence to the social environment and operate responsibly and making food which is good for health and utilizing the resources carefully keeping the environment safe produces good healthy food.Vision:-Their Vision is to become a leading competitor among those companies which are operating in the market with the same aim to provide Healthier food and to capture large market share and also create value for the customers.They also wants to become a company which is preferred always, like among its competitors the customer should choose their company. So, keeping their vision and mission in mind they focus their products and its availability in the market and which is easily accessed by their valuable consumer.

Core Values:The Company Core values are as follows. They focus on to develop a workforce which is highly motivated and can perform well in the workplace. They focus to meet the requirements and needs of their consumer which comprises of all age groups. They can be from small infant to older age. They focus on creating high quality products and provide services which are helpful in capturing great customer value. They also focus on maintaining the shareholders wealth but keeping in mind that to perform their operations well with environmental and social responsibilities. Their brands are preferred in comparison of High quality food and Beverage products. They Communicate with their customer and provide them with the relevant information they need. They promote their employees and motivate them to compete and to become specialized in their work. They also have milk collection services which help to develop dairy sector in the rural areas of Pakistan. The organization follows proactive approach which helps them to compete in the market.

Keeping all the above mentioned points in mind these points help the Organization to maintain and run their daily operations in way which is best for both the organization and the Share Holders and also keeping and running their customer trust in the long run.Competitive AdvantageFor a company to survive the company must maintain and sustain its competitive advantage. So, these are the major 10 reasons why Nestle is still competing and is successful. Nutrition, Health and Wellness: Nestls core aim is to enhance the quality of consumers lives every day, everywhere by offering tastier and healthier food and beverage choices and encouraging a healthy lifestyle. Nestle express this via their corporate proposition Good Food, Good Life. Nestl Nutritional Profiling System Quality Assurance and product safety: Everywhere in the world, the Nestl name represents a promise to the consumer that the product is safe and of high standard. Nestl Quality Policy Consumer Communication: Nestle is committed to responsible, reliable consumer communication that empowers consumers to exercise their right to informed choice and promotes healthier diets. Nestle respect consumer privacy. Nestl Consumer Communications Principles Nestl Policy and Instructions for Implementation of the WHO International Code of Marketing of Breast-milk Substitutes Human rights in Nestls business activities Nestle fully support the United Nations Global Compacts (UNGC) guiding principles on human rights and labour and aim to provide an example of good human rights and labour practices throughout our business activities. International Labour Organization Leadership and personal responsibility Nestls success is based on Nestls people. Nestls treat each other with respect and dignity and expect everyone to promote a sense of personal responsibility. The Company recruit competent and motivated people who respect their values, provide equal opportunities for their development and advancement, protect their privacy and do not tolerate any form of harassment or discrimination. Safety and health at work: The Company is committed to prevent accidents, injuries and illness related to work, and to protect employees, contractors and others involved along the value chain. Supplier and customer relations: The Company require their suppliers, agents, subcontractors and their employees to demonstrate honesty, integrity and fairness, and to adhere to their non-negotiable standards. In the same way, they are committed towards their own customers. Agriculture and rural development The Company is contributed towards improvements in agricultural production, the social and economic status of farmers, rural communities and in production systems to make them more environmentally sustainable. Environmental sustainability: The Company is committed to environmental sustainability. At all stages of the product life cycle they strive to use natural resources efficiently, favor the use of sustainably-managed renewable resources, and target zero waste. Water Nestle is committed to the sustainable use of water and continuous improvement in water management: The Company recognize that the world faces a growing water challenge and that responsible management of the worlds resources by all water users is an absolute necessity. Nestl Water report Nestl continues to maintain its commitment to follow and respect all applicable local laws in each of its markets.Competitors:Engro foods and Haleeb foods are the main competitors of Nestle in Pakistan& the main strong competitor is Shezan. Nestle produces wide range of food and medical items. The main competitors of Pakistan are Unilever and Proctor and Gamble.Competition typically is defined as among forms within an industry producing products that are substitutes for one another. Therefore, the identification and evaluation of marketplace competitors is a key element of strategic marketing and a vital element of the corporate survival.Nestl is the market leader in the water industry. It is the first company which launched bottled water for first time in Pakistan and thats why it has maximum market share than others because of being pioneer in this industry. It is also leading the other firms in new product introductions, distribution coverage, and promotional intensity.For different product categories there are different competitors of Nestl. Nestle pure life (NPL) major competitors at this time who are also offering their water product in market are following: Pepsi is offering Aqua Fina Askari waterThere are also other small competitors as well e.g. Classic, Nova etc which have very low market segements.According to market view, competition is defined as:The competition between the firms, which are satisfying the same customer, needs.So according to concept the competitors of NPL are all those companies, which are satisfying the need of thrust of the customers. Beverages companies like unilever, Tapal danedar, Pepsi, Coca cola etc. also come in this kind of the competition.Boston Consulting Group MatrixStar Category Nestle Milkpak Pure life Nido Cerelac Nestle Fruita Vitals (Necter Juices) These products are widely used by peoples in Pakistan. So to increase market share. Nestle should decrease the price of these products. Question Mark Category Everyday Milkpak Cream There are some minor default in above mentioned products like there taste and expiry dates. These products can become star product if these defaults be removed. Cash Cow Category Nestle Dahi Maggi Kitkat Polo These product can made star products of nestle if nestle add new flavors and do penetration instead of skimming.

Dog Category Nestle Koko Crunch Nestle Cornflakes Milo Nestle Raita These products are not sold as much due to following factors. Targeting specific economic class. Not according to taste of peoples. Rare peoples like these products.

Products & Services:Products:

UHT Milk:The milk is basically pass through the process called as Ultra High Temperature Milk treatment. Through this Process the Milk Becomes Suitable for Health and is basically done keeping the value of consumer in mind. Some of Milk Related Products are as follows. Nestle NIDO Nestle NESVITA Nestle MILK PAK Nestle EVERYDAY

UHT Cream Nestle MILK PAK CREAM Nestle Milkmaid Creations Dessert Cream.

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Infant Foods: CERELAC

Yoghurt: NESTLE ACTIPLUS NESTLE RAITA NESTLE YOGURT NESTLE RIWAYATI MAZAA

Juices: NESTLE FRUITA VITALS

Ready to cook noodles:

MAGGI NOODLES

Cereals:

Water

Nestle Pure Life

Services: Feed improvement Livestock breeding and health Equipment provision

Marketing mixof Nestle Instant MilkPRODUCTI have selected Three Nestls Products of Milk Category.

Nestle Milk (Liquid)

Nestle Condensed Milk(Dense Liquid)

Nestle Everyday (Powdered Milk)

Nestle Launched Firstl Powder milk in 2003 and then they came into Liquid powder. The Nestle Powder milk because of its good quality helps Nestle to capture a great customer value. Milk Powder which Nestle Introduced has good taste, more stable, ready to drink, and less volume. The Production of Nestle every day is carried out in Sheikhupura and Kabianwala. They improved the quality of milk by the UHT process. The target markets for these products are the consumers who drink Tea in their daily routine. Industrial consumers of Nestle Everyday instant milk:PIA, MC-DONALDS and PEARLCONTINENTAL Pakistan.PRICEPrice of productNestle basically sets prices by keeping in mind that they have to capture a greater customer value and that their products are in the reach of their consumer i.e.: the consumer has the Pocket to pay for their product. So, in this way the Nestls product demand increases. Profit margin of the productThe Company has set its profit margin high because of their products good quality.Price Fluctuation The product is related to dairy farms. So, there are chances of price fluctuation. Scale of pricesThere is a price scale which is set to a specific level. So, the consumer can pay for the product.PROMOTIONChannels adopted for promotionThey basically promote their products through Media, New papers, magazines, Boardings.Advertisement CostAs every company planned their financial year. So, Nestle also has a Specific budget for advertising

Nature of marketingThe product is marketed aggressively in the market.Online promotion methodsNestle does not have yet adopted online promotion methods in Pakistan but in future it may bepossible.PLACEMENTOutlets of product locatedNestls products are located all over in Pakistan regardless of big and small cities.Directly sales to the consumers or via distributorsNestls products are not sold directly tothe customers because of theextensive consumer groups. Its the reason they usethe sale theproducts through distributors for easiness of company.Insurance policies ofcompaniesNestls insurance policies are maintained but they are highly confidential.Warehousing facilitation of company Nestle has its own warehouses for the storage of products as well as it has also hired some warehouses.Transportation modes of the productUsually Nestls mode of transportation is road.

Suggestions for ImprovementsThis is competitive world and must never forget that customers have a choice. If they are not satisfied with a Nestl Product, they will switch to another brand. The pursuit of highest quality at any price is no guarantee for success, nor is a single-minded cost-cutting approach. Lasting competitive advantage is gained from a balanced search for optimal value to customers, by simultaneous improvement of quality and reduction cost.Success can never be taken for granted. Nestl must watch and learn from its competitors. If they do something better, Nestle must improve its own performance. Nestle can achieve competitive advantage through Quality.Progress is followed by listening to Nestle customers and by measuring its works performance. Shortcomings and mistakes must be analyzed and corrected. Problems must be anticipated and prevented before they occur. Nestle also must identify and take advantage of opportunities.To stand still is to fall behind. So Nestle must strive for continuous improvement in every area. It is through many small improvements as well as through major breakthroughs that Nestle will achieve excellence.I have observed from my extensive hard-work to compile these pages, consumer services department is the evidence of such a pursuit from the organization point of view. Presently the company is market leader in its category but it shouldnt take it as a complacent attitude rather capitalize on its good brand equity and to improve its quality of product to reap not only more profits for the shareholder but also serve the humanity by providing them healthful water which in other way a noble & sacred job. The company can fulfill this job by having such a spirit following it religiously by incorporating it all the marketing strategies.

References Personal visit to regional office of Nestle Company in Quetta. Management and financial report of NESTLE PAKISTAN LIMITED 2010, 2011. http://www.nestle.com/randd/ourvision http://en.wikipedia.org/wiki/Nestl%C3%A9 http://www.nestle.com/media/reports/pages/reports.aspx