Nestle

mera umer

2. Ahmed Anwar Ul Haq 09217009
Mohsin Salman 09217007
Zohaib Umer Farooq 08117026
Asad Anwer 08117027

4. INTRODUCTIONINTRODUCTION

In the mid of 1860, Nestle began the In the mid of 1860, Nestle began the
experimenting with various combination of experimenting with various combination of
Cow’s milk.Cow’s milk.

In 1867, Nestle was introduced in In 1867, Nestle was introduced in
Switzerland .Switzerland .

Nestle is the world leading Food Nestle is the world leading Food
Company. Company.

It have more than 650 factories in 95 It have more than 650 factories in 95
countries.countries.

The Nestle factories are operating in the The Nestle factories are operating in the
region of Africa, America, Asia, Europe region of Africa, America, Asia, Europe
and Oceania.and Oceania.

5. FOUNDER OF NESTLEFOUNDER OF NESTLE
Henri Nestlé

6. HistoryHistory

The company dates to 1867.The company dates to 1867.

Two separate Swiss enterprises were Two separate Swiss enterprises were
founded that would later form the core of founded that would later form the core of
Nestle.Nestle.

In August, Charles A.In August, Charles A. and George Pageand George Page , ,
brothers in the United States, established brothers in the United States, established
the Anglo-Swiss Condensed Milk the Anglo-Swiss Condensed Milk
Company in Cham.Company in Cham.

7. History History (cont)(cont)

In September, Henri Nestlé developed a In September, Henri Nestlé developed a
milk-based baby food and soon began milk-based baby food and soon began
marketing it. marketing it.

Both enterprises aggressively expanded Both enterprises aggressively expanded
their businesses throughout Europe and their businesses throughout Europe and
the United States. the United States. (Henri Nestle retired in 1875 but the (Henri Nestle retired in 1875 but the
company under new ownership retained his name as company under new ownership retained his name as Farine Farine
LacteeLactee Henri NestleHenri Nestle).).

In 1877 Anglo-Swiss added milk-based In 1877 Anglo-Swiss added milk-based
baby foods to its products, and Nestle baby foods to its products, and Nestle
company added condensed milk.company added condensed milk.

8. History History (cont)(cont)

In 1905, the companies merged to In 1905, the companies merged to
become the Nestlé and Anglo-Swiss become the Nestlé and Anglo-Swiss
Condensed Milk Company.Condensed Milk Company.

World War I created new demand for dairy World War I created new demand for dairy
products.products.

By the end of the war, Nestlé's production By the end of the war, Nestlé's production
had more than doubled.had more than doubled.

The 1920s, Nestlé's first expansion into The 1920s, Nestlé's first expansion into
new products, with chocolate the new products, with chocolate the
company's second most important activity.company's second most important activity.

9. Nestlé headquarters in Vevey

10. NESTLE LOGO
Good Food GOOD LIFE

11. EARNING OF NESTLE EARNING OF NESTLE

Nestlé felt the effects of World War II Nestlé felt the effects of World War II
immediately. Profits dropped from US$20 immediately. Profits dropped from US$20
million in 1938 to US$6 million in 1939. million in 1938 to US$6 million in 1939.

The end of World War II was the The end of World War II was the
beginning of a dynamic phase for Nestlé. beginning of a dynamic phase for Nestlé.

Nestlé made its second venture outside Nestlé made its second venture outside
the food industry by acquiring Alcon the food industry by acquiring Alcon
Laboratories Inc.Laboratories Inc.

12. EARNING OF NESTLE EARNING OF NESTLE (cont)(cont)

In 1984, Nestlé's improved bottom line In 1984, Nestlé's improved bottom line
allowed the company to launch a new allowed the company to launch a new
round of acquisitionsround of acquisitions..

In December 2005 Nestlé bought the In December 2005 Nestlé bought the
Greek company Delta Ice Cream for €240 Greek company Delta Ice Cream for €240
million.million.

13. EARNING OF NESTLE EARNING OF NESTLE (cont)(cont)

In December 2005 Nestlé bought the Greek In December 2005 Nestlé bought the Greek
company Delta Ice Cream for €240 million.company Delta Ice Cream for €240 million.

In January 2006 it took full ownership of In January 2006 it took full ownership of
Dreyer's, thus becoming the world's biggest ice Dreyer's, thus becoming the world's biggest ice
cream maker with a 17.5% of market share.cream maker with a 17.5% of market share.

In April 2007 Nestlé bought baby food In April 2007 Nestlé bought baby food
manufacturer Gerber for $5.5 billion.manufacturer Gerber for $5.5 billion.

14. Mission StatementMission Statement
“ “Nestle is the largest food company in theNestle is the largest food company in the
world. But, more important to them is to the world. But, more important to them is to the
worlds leading Food Company”. worlds leading Food Company”.

15. Vision StatementVision Statement
“ “Nestlé's vision is to be the leading food & Nestlé's vision is to be the leading food &
beverage company in the world providing beverage company in the world providing
customers with healthy food at affordable customers with healthy food at affordable
prices”. prices”.

16. Nestle TodayNestle Today

Today, after 140 years it was first used, the nest Today, after 140 years it was first used, the nest
continues to be the corporate Identity of Nestle continues to be the corporate Identity of Nestle
as the worlds leading Food Company.as the worlds leading Food Company.

Nestle is the world No.1 food company. Nestle is the world No.1 food company.

It is the 5th largest company in the world It is the 5th largest company in the world
according to its turnover. according to its turnover.

It has an annual turn-over of 70 billion Swiss It has an annual turn-over of 70 billion Swiss
francs.francs.

It have 650 factories in 95 countries.It have 650 factories in 95 countries.

17. Nestle Today Nestle Today (cont)(cont)

It have more then 200 operating It have more then 200 operating
companies.companies.

It have more than 231,000 employees all It have more than 231,000 employees all
over the world.over the world.

It develop the new ways of satisfying It develop the new ways of satisfying
man's nutritional needs.man's nutritional needs.

It have 1 basic re- search center and 20 It have 1 basic re- search center and 20
technological development groups. technological development groups.

18. Asia: A Dynamic MarketAsia: A Dynamic Market

Nestlé Waters can penetrate markets in Nestlé Waters can penetrate markets in
emerging countries as well as industrialized emerging countries as well as industrialized
nations.nations.

In Asia, Nestlé Waters is strengthening Nestlé In Asia, Nestlé Waters is strengthening Nestlé
Pure Life.Pure Life.

It emerging nations for clean, good-tasting water It emerging nations for clean, good-tasting water
in convenient sizes and packages to satisfy a in convenient sizes and packages to satisfy a
family's daily requirements. family's daily requirements.

19. Asia: A Dynamic Market Asia: A Dynamic Market
(cont)(cont)

The brand “Nestle Water” was launched in The brand “Nestle Water” was launched in
Pakistan in 1998.Pakistan in 1998.

Annual bottled water consumption per Annual bottled water consumption per
person varies widely throughout Asia, person varies widely throughout Asia,
such assuch as

4.5L in Pakistan to 37.8L in Thailand, 4.5L in Pakistan to 37.8L in Thailand,
giving Asia strong growth potential for the giving Asia strong growth potential for the
years to come. years to come.

20. Nestle in AsiaNestle in Asia

Pakistan Pakistan

India India

China China

BangladeshBangladesh

IndonesiaIndonesia

Sri LankaSri Lanka

Korea RepublicKorea Republic

VietnamVietnam

ThailandThailand

JapanJapan

PhilippinesPhilippines

21. Joint venturesJoint ventures

Nestlé holds 26.4% of the shares of Nestlé holds 26.4% of the shares of
L'OréalL'Oréal..

The world's largest company in cosmetics The world's largest company in cosmetics
and beauty.and beauty.

OOthers include:thers include:
Cereal Partners with General MillsCereal Partners with General Mills
Beverage Partners with Coca-Cola, Beverage Partners with Coca-Cola,
Dairy Partners Americas with Fonterra.Dairy Partners Americas with Fonterra.

22. Nestle Brands in Pakistan Nestle Brands in Pakistan

Nestle Nido Nestle Nido

Milkpak UHT Cream Milkpak UHT Cream

23. Nestle Brands Nestle Brands (cont)(cont)

Nestle YogurtNestle Yogurt

Nestle Fruity yogurt Nestle Fruity yogurt

24. Nestle Brands Nestle Brands (cont)(cont)

Nestle RaitaNestle Raita

Nestle Corn Flakes Nestle Corn Flakes

25. Nestle Brands Nestle Brands (cont)(cont)

Nestle MiloNestle Milo

Nestle CerelacNestle Cerelac

26. Nestle Brands Nestle Brands (cont)(cont)

Nestle PoloNestle Polo
Nescafe

27. Nestle Brands Nestle Brands (cont)(cont)

Nestle Pure WaterNestle Pure Water

28. Nestle Brands Nestle Brands (cont)(cont)

Nestle JuicesNestle Juices

29. PRODUCTS MIX OF NESTLE PRODUCTS MIX OF NESTLE

Nestle is a well-known company all over Nestle is a well-known company all over
the world as well as in Pakistan.the world as well as in Pakistan.

Nestle basically deals in food products.Nestle basically deals in food products.

Therefore Nestle logo saysTherefore Nestle logo says
“ “Good Food, Good Life” Good Food, Good Life”

30. PRODUCTS MIX OF NESTLE PRODUCTS MIX OF NESTLE
(cont)(cont)

In December 1998, Nestle Water was In December 1998, Nestle Water was
launched as Nestle Pure Life.launched as Nestle Pure Life.

It is available in 0.5L, 1.5L, 12L and 19L It is available in 0.5L, 1.5L, 12L and 19L
sizes. sizes.

31. Nestle Pure Life WaterNestle Pure Life Water

Nestle Pure Life in Nestle Pure Life in
0.5L and 1.5L bottles.0.5L and 1.5L bottles.

Nestle Pure Life in Nestle Pure Life in
12L and 19L bottles.12L and 19L bottles.

32. HISTORY OF NESTLE WATERHISTORY OF NESTLE WATER

In 1976, when we introduced In 1976, when we introduced Perrier Perrier
Sparkling Natural Mineral Water Sparkling Natural Mineral Water in North in North
America.America.

Then first domestic bottled water brand we Then first domestic bottled water brand we
added to our portfolio was added to our portfolio was Poland Spring Poland Spring
Brand Natural Spring WaterBrand Natural Spring Water, first bottled in , first bottled in
Maine in 1845. Maine in 1845.

33. HISTORY OF NESTLE WATER HISTORY OF NESTLE WATER
(cont)(cont)

Then Then Calistoga Brand Sparkling Mineral WaterCalistoga Brand Sparkling Mineral Water, ,
from a source in Napa Valley, California, joined from a source in Napa Valley, California, joined
our family.our family.

We had also 11 additional regional, national, and We had also 11 additional regional, national, and
imported brands to our rich selection of bottled imported brands to our rich selection of bottled
waters.waters.

Seven of the top ten bottled water brands sold in Seven of the top ten bottled water brands sold in
the U.S. are Nestlé Waters North America the U.S. are Nestlé Waters North America
brands. brands.

34. HISTORY OF NESTLE WATER HISTORY OF NESTLE WATER
(cont)(cont)
Nestlé WatersNestlé Waters serve customers in 130 serve customers in 130
countries.countries.
Nestlé WatersNestlé Waters have 75 well-known bottled have 75 well-known bottled
water brands in all over the world.water brands in all over the world.

35. NESTLE WATER IN PAKISTAN NESTLE WATER IN PAKISTAN

Nestle Pure Life was launch on 14 Nestle Pure Life was launch on 14
December, 1998 in Karachi.December, 1998 in Karachi.

36. PUBLICITY PUBLICITY

Mothers of school children were sent an Mothers of school children were sent an
invitation to attend a Water Show.invitation to attend a Water Show.

At the end of the show, visitors received a At the end of the show, visitors received a
promotional kit offering a chance to promotional kit offering a chance to
sample Nestle Pure Life.sample Nestle Pure Life.

The contest offered 10,000 rupees in prize The contest offered 10,000 rupees in prize
money.money.

37. PUBLICITY PUBLICITY (cont)(cont)

A high profile, national level hockey match A high profile, national level hockey match
played at Ayub Stadium, Quetta on April played at Ayub Stadium, Quetta on April
18, 2003.18, 2003.

A cycle race on March 9, 2000 in A cycle race on March 9, 2000 in
collaboration with the Balochistan Cycle collaboration with the Balochistan Cycle
Association.Association.

38. MANAGEMENT PROCESSMANAGEMENT PROCESS
PLANNING ORGANIZING
LEADING CONTROLING

39. PlanningPlanning

Firstly when a need is observed to launch any Firstly when a need is observed to launch any
product here in Pakistan a plan is made by the product here in Pakistan a plan is made by the
process of market research. process of market research.

They observe the need and demand of the They observe the need and demand of the
product, target market is settled. product, target market is settled.

The cost and the expected profit that is their goal The cost and the expected profit that is their goal
are being estimated. The promotional activities are being estimated. The promotional activities
are made like posters and pamphlets and are made like posters and pamphlets and
introductory samples are represented they introductory samples are represented they
define their goal to make and present value define their goal to make and present value
added products according to targeted market. added products according to targeted market.

40. OrganizingOrganizing

After planning they organize the activities like After planning they organize the activities like
which kind of people are required and the which kind of people are required and the
process that would be controlled by them under process that would be controlled by them under
which situations and how they would move. which situations and how they would move.


For example “Nestle Pure Life” was planned to For example “Nestle Pure Life” was planned to
be launched in urban area for young people. be launched in urban area for young people.

41. LeadingLeading

It concern as they prefer their people as, It concern as they prefer their people as,
”PEOPLE FIRST”. Nestlé is more product ”PEOPLE FIRST”. Nestlé is more product
orientated than systems orientated And orientated than systems orientated And
they are more decentralized as possible. they are more decentralized as possible.

They motivating activities all around the They motivating activities all around the
world for their employees as they trained world for their employees as they trained
employees for their education. employees for their education.

42. ControllingControlling

Under this managerial activity they compare its Under this managerial activity they compare its
manufactured products with standard products.manufactured products with standard products.

After give feed backs they made any change if After give feed backs they made any change if
required.required.

For example they maintain their Plants For example they maintain their Plants
according to best standard and the product from according to best standard and the product from
there is send by time so that the manufactured there is send by time so that the manufactured
products are supposed to check it according to products are supposed to check it according to
these stuff. these stuff.

43. Nestle Pyre Life CustomersNestle Pyre Life Customers

Our Customers are;Our Customers are;

Distributors Distributors

Supermarkets Supermarkets

Hotels Hotels

Shopkeepers and Shopkeepers and

The IndividualsThe Individuals

44. Our CompetitorsOur Competitors

There are not too much competitors of There are not too much competitors of
nestle pure life in the market.nestle pure life in the market.

““Aquafina” from Pepsi.Aquafina” from Pepsi.

““kinley” from coca cola.kinley” from coca cola.

Some local brands such as;Some local brands such as;

Prime waterPrime water

Sufi Sufi

45. MARKET SHARE OF NESTLE MARKET SHARE OF NESTLE

Nestle occupied 85% of drinking water Nestle occupied 85% of drinking water
market in all over the Pakistan.market in all over the Pakistan.


In Lahore Nestle Pure Life has 72%of total In Lahore Nestle Pure Life has 72%of total
market.market.

And remaining 28% shares of market are And remaining 28% shares of market are
kept by other companies.kept by other companies.

46. MARKET SHARE OF NESTLE MARKET SHARE OF NESTLE
(cont)(cont)

In LahoreIn Lahore

Aquafina have 25% ButAquafina have 25% But

Nestle Pure Life have 65% and Nestle Pure Life have 65% and

Remaining have 10% are kept by Remaining have 10% are kept by
other local companies.other local companies.

47. MARKET SHARE OF NESTLE MARKET SHARE OF NESTLE
(cont)(cont)

In GujranwalaIn Gujranwala

50% of market is kept by Nestle 50% of market is kept by Nestle

25% by Aquafina and 25% by Aquafina and

Remaining 25% is kept by other Remaining 25% is kept by other
local companies.local companies.

48. COMMUNICATION & COMMUNICATION &
ADVERTISING ADVERTISING

Advertisement is a tool to introduce the Advertisement is a tool to introduce the
product in the market. To increase sales product in the market. To increase sales
and build an image in the mind of and build an image in the mind of
consumers.consumers.

We advertise in different ways;We advertise in different ways;

News News

Radio Radio

TelevisionTelevision

Bill BoardBill Board

49. SWOT ANALYSISSWOT ANALYSIS

StrengthsStrengths

Weaknesses Weaknesses


Opportunities Opportunities

ThreatsThreats

50. StrengthsStrengths

The strength of Nestlé's brands has given The strength of Nestlé's brands has given
the company an unparalleled position on a the company an unparalleled position on a
global basis.global basis.

Five worldwide corporate brands such as;Five worldwide corporate brands such as;

Nestlé Nestlé

Nescafe Nescafe

Nestea Nestea

Maggi and Maggi and

Friskies Friskies

51. Strengths Strengths (cont)(cont)

These brands contribute about 70% of the These brands contribute about 70% of the
group's total sales, with the Nestlé brand group's total sales, with the Nestlé brand
itself contributing 40%.itself contributing 40%.

For launching new product we adopt 60% For launching new product we adopt 60%
and 40% test method. and 40% test method.

52. WeaknessesWeaknesses

We have less knowledge about the host country We have less knowledge about the host country
culture norms and value.culture norms and value.
Opportunities Opportunities

Nestlé has a lot of scope to expand the market Nestlé has a lot of scope to expand the market
by using various product development by using various product development
techniques. techniques.

53. Threats Threats

Some other Multinational companies are Some other Multinational companies are
also exist in Pakistani market, such as;also exist in Pakistani market, such as;

AquafinaAquafina

kinleykinley

54. PROBLEMSPROBLEMS

HRM department is not giving good salaries to HRM department is not giving good salaries to
the employees, so employees are de-motivated the employees, so employees are de-motivated
and don’t work with the company for very long. and don’t work with the company for very long.

Staff is not as responsible as it should be.Staff is not as responsible as it should be.

There are not much security measures in the There are not much security measures in the
office. office.

A constant threat to the company’s economic A constant threat to the company’s economic
balance due to unstable government policies.balance due to unstable government policies.

The regional office is not managed properly e.g. The regional office is not managed properly e.g.
no board is placed to mention the identity of the no board is placed to mention the identity of the
office.office.

55. SUGGESTIONS/SOLUTIONSSUGGESTIONS/SOLUTIONS

Bonus packages and increment in salaries for a Bonus packages and increment in salaries for a
selective level of work and efficiency should be selective level of work and efficiency should be
awarded to attract the employees concern. awarded to attract the employees concern.

Staff should be made more responsible by Staff should be made more responsible by
implementing strict rules and regulations for any implementing strict rules and regulations for any
un-professional behavior.un-professional behavior.

Skilled workers of the company should join the Skilled workers of the company should join the
security department to enhance the system.security department to enhance the system.

Long term agreements to be signed with Long term agreements to be signed with
governmental departments.governmental departments.

A small part of the budget should be spent for A small part of the budget should be spent for
the management of the office. the management of the office.

Inventory should be maintained.Inventory should be maintained.

56. CONCLUSIONCONCLUSION

Nestle is a market leader due to different Nestle is a market leader due to different
reasons: reasons:

Its price is high against its competitors but Its price is high against its competitors but
it matches its quality with its competitors.it matches its quality with its competitors.

Nestle is using its brand name to promote Nestle is using its brand name to promote
its products & it’s very popular as its products & it’s very popular as
compared to its competitors.compared to its competitors.

Its packaging is good.Its packaging is good.

We can easily find Nestle from any retailer We can easily find Nestle from any retailer
shop.shop.

57. CONCLUSIONCONCLUSION

Due to its advertisement, Nestle attracts more Due to its advertisement, Nestle attracts more
customers & has very prosperous future if it customers & has very prosperous future if it
continues to promote its products and bring all continues to promote its products and bring all
the possible innovational aspects using different the possible innovational aspects using different
product line strategies.product line strategies.

It has always maintained the quality of its It has always maintained the quality of its
products.products.

Despite of all the facts, there’s need to maintain Despite of all the facts, there’s need to maintain
the condition of office and enhance the security.the condition of office and enhance the security.

Behavior of employees is not professional and Behavior of employees is not professional and
every department should treat equally. every department should treat equally.

Easily available at every shop.Easily available at every shop.