INTRODUCTION

Nestlé was founded in 1866 by Henri Nestlé and is today the world’s biggest food and
beverage company. Sales at the end of 2005 were CHF 91 b n, with a net profit of
CHF 8 bn. Nestlé employ around 250,000 people from more than 70 countries and
have factories or operations in almost every country in the world. history of Nestlé
began in Switzerland in 1867 when Henri Nestlé, the pharmacist, launched his
product “Farine lactee” Nestlé, a nutritious gruel for children. Henri used his surname,
which means ‘little nest’, in both the company name and the logotype. The nest,
which symbolizes security, family and nourishment, still plays a central role in
Nestlé’s profile since it began over 130 years ago, Nestlé’s success with product
innovations and business acquisitions has turned it into the largest Food Company in
the world. As the years have passed, the Nestlé family has grown to include
chocolates, soups, coffee, cereals, frozen products, yoghurts, mineral water and other
food products. Beginning in the 70s, Nestlé has continued to expand its product
portfolio to include pet foods, pharmaceutical products and cosmetics too. Today,
Nestlé markets a great number of products, all with one thing in common: the high
quality for which Nestlé has become renowned throughout the world. The Company’s
strategy is guided by several fundamental principles. Nestlé’s existing products grow
through innovation and renovation while maintaining a balance in geographic
activities and product lines. Long-term potential is never sacrificed for short-term
performance. The Company’s priority is to bring the best and most relevant products
to people, wherever they are, whatever their needs, throughout their lives. Taste of
Nestlé in each of the countries where Nestlé sell products. Nestlé is based on the
principle of decentralization, which means each country is responsible for the efficient
running of its business – including the recruitment of its staff. That’s not to say that
every operating company can do as it wishes. Headquarters in Vevey sets the overall
strategy and ensures that it is carried out. It’s an approach that is best summed up as:
‘centralize what you must, decentralize what you can’. Nestlé is a company which is
present in all over the world but It has difference and unique motto to deal in all over
the world. Nestlé believes that they should think about their organizations globally but
they deal with people by interacting with them locally.
 “Thinking globally – acting locally”

Evolution of nestle:-

1867

Henri Nestlé founded the company in Vevey, Switzerland.

1898

Nestlé purchases its first factory outside of Switzerland – Viking Milk factory in
Norway.

1905

Nestlé merges with Anglo-Swiss Condensed Milk Company.

1929

Nestlé merges with Peter-Cailler-Kohler Chocolates Suisses S.A.

1938

Nestlé launches Nescafé – the world’s first instant coffee.

1947

Nestlé merges with Alimentana S.A. with the brand Maggi.

1962

Nestlé purchases Findus.

1974

Nestlé becomes a significant shareholder in the Cosmetics Company L’Oréal.

1977

Nestlé purchases Alcon, manufacturer of eye care products and kits.

1985

Nestlé purchases the Food Company Carnation.

1988

Nestlé purchases the confectionary company Rowntree Mackintosh and the

pastacompany Buitoni-Perugina.

1992

Nestlé purchases the mineral water Company Perrier.

1998

Nestlé purchases Spillers pet foods business.

2000

Nestlé sells the Findus brand in all countries except for Switzerland.

2001

Nestlé merges with Ralston Purina, the premier petfood company in North America
and with unique expertise in the dry dog food area.
Vison of nestle:-

Nestlé’s vision of making good food central to enjoying a good healthy life for
consumers everywhere. This implies gaining a deeper understanding in many areas of
nutrition and food research and transforming the scientific advances into applications
for the company. Having a broad vision the company is doing its best for their
consumers to show the great sense of responsibility.

Nestlé’s aim is to meet the various needs of the consumer every day by marketing and
selling food of a consistently high quality.

The confidences that consumers have in our brands is a result of our company’s
many years of knowledge in marketing, research and development, as well as
continuity -consumers relate to this and feel they can trust our products.

High quality and collaboration

Our objectives are to deliver the very best quality in everything we do, from primary
produce, choice of suppliers and transport, to recipes and packaging materials. Our
operations and collaboration in the Nordic countries gives us greater opportunities to
be efficient and strategic and to function well as an organization, both when it comes
to the distribution chain and to concentrating on joint product launches and
campaigns.

Focus on e-business and websites

Increased investments in the sphere of e-business give us swifter business and direct
contact with trade. Our website is a forum for consumers, students, future employees
and the media. We hope that through a sincere approach and by conducting dialogues,
we will be able to improve, change and satisfy the demands and wishes of the people
of today
History of nestle :-

Nestlé started its work as a multinational company in 1866. From that time they
provided their best to their customers and the history of the nestle is given below

1866-1918

In the 1860s Henri Nestlé, a pharmacist, developed a food for babies who were
unable to breastfeed. His first success was a premature infant who could not
tolerate his mother’s milk or any of the usual substitutes. People quickly
recognized the value of the new product, after Nestlé’s new formula saved the
child’s life, and soon, Farine Lactée Henri Nestlé was being sold in much of
Europe.In 1905 Nestlé merged with the Anglo-Swiss Condensed Milk Company.
Bearly1900s,cocom

1866 -1918

In the 1860s Henri Nestlé, a pharmacist, developed a food for babies who were
unable to breastfeed. His first success was a premature infant who could not tolerate
his mother’s milk or any of the usual substitutes. People quickly recognized the value
of the new product, after Nestlé’s new formula saved the child’s life, and soon, Farine
Lactée Henri Nestlé was being sold in much of Europe.In 1905 Nestlé merged with
the Anglo-Swiss Condensed Milk Company. By the early1900s, the company was
operating factories in the United States, Britain, 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.
1918-1944

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. Nestlé felt the effects of
World War II immediately. Profits dropped from $20 million in1938 to $6 million in
1939. Factories were established in developing countries, particularly Latin America.
Ironically, the war helped with the introduction of the company’s newest product,
Nescafé, which was a staple drink of the US military. Nestlé’s production and sales
rose in the wartime economy.

1944-1975

The end of World War II was the beginning of a dynamic phase for Nestlé. Growth
accelerated and companies were acquired. In 1947 came the merger with Maggi
seasonings and soups. Crosse & Blackwell followed in 1960, as did Findus
(1963),Libby’s (1971) and Stouffer’s (1973). Diversification came with a
shareholding in L’Oréal in 1974.

1975-1981

Nestlé’s growth in the developing world partially offset a slowdown in the

Company’s traditional markets. Nestlé made its second venture outside the food
industry by acquiring Alcon Laboratories Inc.

1981-1996

Nestlé divested a number of businesses1980 / 1984. In 1984, Nestlé’s improved

bottom line allowed the Company to launch a new round of acquisitions, the most
important being American food giant Carnation. Nestlé introduce yogurt and butter in
this time period.

1996 onwards

The first half of the 1990s proved to be favourable for Nestlé: trade barriers crumbled
and world markets developed into more or less integrated trading areas. Since 1996
there have been acquisitions including San Pellegrino (1997), Spillers Pet foods
(1998) and Ralston Purina (2002). There were two major acquisitions in North
America, both in2002: in July, Nestlé merged its U.S. ice cream business into
Dreyer’s, and in August, a USD 2.6bn acquisition was announced of Chef America,
Inc.

Detail of Nestlé’s Products in All over the World

Coffee:-

Nescafé, Taster’s Choice, Ricoré, Ricoffy, Nespresso,Bonka, Zoégas, Loumidis

Water:-

Nestlé Pure Life, Nestlé Aquarel, Perrier, Vittel, Contrex,S.Pellegrino, Acqua Panna,
Levissima, Arrowhead, PolandSpring, Deer Park, Ozarka, Hépar, Ice Mountain,
Zephyrhills

Other beverages:-

Nestea, Nesquik, Nescau, Milo, Carnation, Libby’s, Caro, Nestomalt, Nestlé

Shelf stable:-

Nestlé, Nido, Nespray, Ninho, Carnation, Milkmaid, LaLechera, Moça, Klim, Gloria,
Svelty, Molico, Nestlé OmegaPlus, Bear Brand, Coffee-Mate,milk pak,yougart

Chilled:-

Nestlé, Sveltesse, La Laitière, La Lechera, Ski, Yoco,Svelty, Molico, LC1, Chiquitin

Ice cream:-

Nestlé, Antica Gelateria del Corso, Dreyer’s/Edy’s,Drumstick/Extrême,

Maxibon/Tandem, Mega, Movenpick,Sin Parar/Sem Parar/Non Stop

Infant nutrition:-
 Nestlé, Nan, Lactogen, Beba, Nestogen, Cerelac, Neslac, Nestum, Guigoz, Good
Start

Performance nutrition:-

PowerBar, Pria, Musashi

HealthCare nutrition:-

Nutren, Clinutren, Peptamen, Modulen

Bouillons, soups, seasonings, pasta,sauces:-

Maggi, Buitoni, Thomy, Winiary,Torchin

Frozen foods:-

Stouffer’s, Lean Cuisine, Hot Pockets, Buitoni, Maggi

Refrigerated products:-

Nestlé, Buitoni, Herta, Toll House

Chocolate and biscuits:-

Nestlé, Crunch, Cailler, Galak/Milkybar, Kit Kat, Smarties,Butterfinger, Aero, Polo

Cosmetics:-

Biotherm, Body Shop , Cosmence, Garnier, Helena Rubenstein, Inneov,La Roche-

Posay, Lancôme,L’Oreal ,Matrix , Maybe line ,Metamorphosis ,Plenitude,Red ken

Pet food:-

Arthur’s, Bakers, BETA, Bonio, Felix ,FriskiesGo-Cat ,Go-dog, Pro Plan,

Purina ,Spiller’sWinalot.

Cereals:-

Cheerios & Honey Nut Cheerios, Cinnamon and Golden Grahams ,Clusters, Cookie
CrispShreddies , Fibre 1,Fitnesse ,Force Flakes Fruitful ,Golden Nuggets ,Nesquik
cereal Shredded Wheat including: Bite size, Fruitful, Honey Nut, Shred dies: Coco
and frosted

 Nestle’s brand details

Baby foods:-

In 1867 a physician persuaded Henri Nestlé to give his product to an infant who was
very ill — he had been born prematurely and was refusing his mother’s milk and all
other types of nourishment. Nestlé’s new food worked, and the boy survived. From
the very beginning, Nestlé’s product was never intended as a competitor for mother’s
milk. In1869, he wrote: “During the first months, the mother’s milk will always be the
most natural nutrient, and every mother able to do so should herself suckle her
children.” The factors that made baby foods success in the early days of the Nestlé
company — quality and superior nutritional value — are still as valid today for the
wide range of infant formula, cereals and baby food made by Nestlé. The World
Health Organization(WHO) recognizes that there is a legitimate market for infant
formula, when a mother cannot or chooses not to breast feed her child. Nestlé markets
infant formula according to the principles and aims of the WHO International Code of
Marketing Breast Milk Substitutes, and seeks dialogue and cooperation with the
international health community and in particular with the WHO and UNICEF, to
identify problems and their solution. Nestlé’s expertise as the world’s leading infant
food manufacturer, gained over more than125 years, is put at the disposal of health
authorities, the medical profession and mothers and children everywhere.
Dairy products:-

Nestlé has long been a major player in the dairy industry, originally with well known
shelf stable brands such as Nido, Nespray, La Lechera and Carnation, then building a
strong international presence in Chilled dairy and Ice cream under the Nestlé brand.
Innovation and renovation play a major role in the development of milk based
products as well as of breakfast cereals, managed as a joint venture with General
Mills.The area of Nutrition, with its benefits to health and wellbeing, is having a
significant impact on the development of our business. A wide range of proven,
science based solutions such as starter and follow-up formulas, growing-up milks,
cereals, enteral diets, oral supplements and performance foods are actively developed
and successfully brought to market under the Nestle brand. Innovation and renovation
play a major role in the development of milk based products as well as of breakfast
cereals, managed as a joint

venture with General Mills.The area of Nutrition, with its benefits to health and
wellbeing, is having a significant impact on the development of our business. A wide
range of proven, science based solutions such as starter and follow-up formulas,
growing-up milks, cereals, enteral diets, oral supplements and performance foods are
actively developed and successfully brought to market under the Nestlé brand

Breakfast Cereals: -

Although cereals have been with mankind in one form or another for millennia, it was
not until the mid 19th century that scientific research, technological innovation, and
the influence of a group of American health reformers, gave rise to the crunchy
foodstuff we know today as breakfast cereal. Nestlé has a joint venture with General
Mills outside North America, Cereal Partners Worldwide, which is active in more
than 80 countries. The joint venture began in 1990, and its rapid growth has been
characterized by strong branding and lately the launching of breakfast cereal brands
into the fast-growing cereal

Ice-cream:-

Ice cream is also on of the major product of nestle

Chocolate & Confectionery: -

Chocolates and confectionery are also present in the list of Nestlé’s products. Nestlé
has Kit Kat, polo, Toffo, Butter scotch, Fruit drops And Soothers In this section of
products.

Prepared Foods: -

In this section of production Nestlé has Maggi And Buitoni. Maggi merged with
Nestlé in1947. Buitoni,

The authentic Italian brand, which has been producing pasta and sauces inItaly since
1827, became part of the Nestlé Group in 1988

Beverages: -

In 1937, Nestlé scientists perfected a powdered coffee product that was introduced
in1938 under the brand name Nescafé-The world’s first commercially successful .It
became so popular during World War II that for one full year the entire output of the
Nescafé plant in the United States (more than 1 million cases) was reserved for
military only. Since then, Nescafé has become one of the world’s best-known brands.
IN addition, Nestlé is a major producer of chocolate-based and malted drinks. Its
leading brands, Nesquik ,Milo And Nescau are very popular with a growing number
of young people around the world. Nestlé’s ready-to-drink beverages Nestea and
Nescafé are sold in various forms (cans, bottles). These are distributed by Nestlé’s
joint-venture with the Coca-Cola Company, Beverage Partners Worldwide. Nestlé is
also present in fruit juices (Libby’s), as well as espresso coffee in capsules
(Nespresso).

Bottled Water:-

Nestlé began its entry into the water business in 1969 with a 30% stake in the owners
of the Society Générale des Eaux Minérales de Vittel. It acquired a controlling interest
in January 1992, and went on in May of the same year to buy out the entire Perrier
Group. IN 1992, Nestlé was the first company to dare to launch a mineral water,
Valvert, in five different countries at once. Its originality lay in the use of an all-new
plastic, P.E.T.(polyethylene teraphthalate), which is stronger and more elastic than the
PVC used since since1968. Besides, P.E.T is recyclable. By the end of 1997, the
Group was present on every continent, and the purchase of SanPellegrino gave it the
leadership in the Italian market. In 1998, for the first time in its history, Nestlé
associated its name with a bottled water: Nestlé Pure Life.The brand was launched in
Pakistan and soon appeared in Brazil, followed by Argentina,Thailand, the
Philippines, China, and Mexico in 2000. In 2001, India, Jordan, and Lebanon
followed, and in 2002, Egypt, Uzbekistan and the United States. Nestlé Pure Life is
drinking water that has been treated and rematerialized using a standardized industrial
process to ensure purity and quality and is marketed in emerging countries. A second
product with the Nestlé name was launched in May 2000, this time in six European
countries: Nestlé Aquarel. Natural spring water currently from nine different springs
in France, Germany, Belgium, Hungary, Italy and Spain, Nestlé Aquarel also uses the
multi-source concept to satisfy new consumer expectations, especially for water with
a low mineral content that the whole family can drink. IN April 2002, the Group
changed its name to Nestlé Waters, a token of Nestlé's decisive commitment to the
bottled water market, which now represents 9% of its sales. Today, Nestlé Waters are
established in 130 countries and markets about 70 different brands. The Group is able
to offer top quality brands and innovative packaging to meet the individual needs of
the water consumer all over the world, whenever, wherever and however thanks to the
wide variety of its offer in terms of distribution and product mix.

L’Oréal (France):

L’Oréal Is the global #1 in cosmetics with a portfolio that contains many of the
world's biggest hair and beauty products, including such brands as Garnier,
Maybelline and Lancôme. It also markets fragrances and cosmetics under license for
other companies such as Giorgio Armani and Ralph Lauren. More than 80% of group
sales are generated outside France, with operations in every major territory. Since the
1980s the group has made North America a particular focus of attention, wrong-
footing domestic rivals with dynamic marketing and a series of smart launches and
clever acquisitions. The most recent of these is the 2006 deal to acquire ethical beauty
products retailer Body Shop. Advertising Age estimated global measured advertising
expenditure of $2.8bn in2005, making L'Oreal the world's #5 advertiser
Members of the board if directors:-

Here are the Name, Year of Birth, Nationality and Education of the
Members of the Board of Directors

Name Year of Nationality Education

birth
Rainer 1932 Swiss Swiss matura
E.Gut(chairman) diploma and
professional
Peter brabeck- 1944 Australia Degree in
letmathe(vcm&eco) economics
Edward george(lord 1938 British Degree in
george) economics
Rolf hanggi 1943 Swiss Degree in law
Jean-pierre meyers 1948 French Degree in
economics
Peter bockli 1936 Swiss Attorney at law
Nobuyuki Idei 1937 Japanese Degree in political
science and
economics

Andre kudelski. 1960 Swiss Degree in physics

Kaspar villiger 1941 Swiss Degree in mechanical
engineering
Daniel borel 1950 Swiss Degree in physics and in
computer science
Carolina muller mohl 1968 Swiss Degree in political
science
  Competitive priorities:-

 Quality

Everyday, millions of people all over the world shows their confidence in nestle by
choosing Nestlé products. This confidence is based on their quality image and a
reputation for high standards that has been built up over standard High performing
design

High performing design Quality policy and principles, the mandatory standards and
the recommended tools for implementation are laid down in the Nestlé Quality
System, which is applicable throughout the group. Further directions are given
through instructions, norms and guidelines, often specific to a product. Nestle
business products; such as raw material producers, packaging suppliers, contract
manufacturers and distributors are expected to share nestle concern for Quality.

Consistent quality A Nestlé brand name on a product is a promise to the customer

that it is safe to consume, that it complies with all regulations and that it meets high
standards of quality.

 Cost

Nestle provides high quality products to its customers at lower prices; prices Nestle
provides high quality products to its customers at lower prices; prices that are
affordable by people in order to get nutritious healthy products. That are affordable by
people in order to get nutritious healthy product

 Time

Through its effective marketing and vast sales and distribution network Through its
effective marketing and vast sales and distribution network throughout the company,
Nestle ensures that its products are available to throughout the company, Nestle
ensures that its products are available to consumers whenever, wherever and however.
They believe that getting the consumers whenever, wherever and however. They
believe that getting the new product to market first gives the firm an edge on the
competition that is new product to market first gives the firm an edge on the
competition that is difficult to overcome in a rapidly changing business environment
difficult to overcome in a rapidly changing business environment (Development speed
Development speed)

 Volume Flexibility

Nestle has the ability to accelerate and decelerate the rate of production quickly to
handle large fluctuations in demand. For Nestle volume flexibility is an important
operating capability that supports the achievement of their other competitive
priorities.

 Corporate wellness unit of Nestle Corporation

The Corporate Wellness Unit was designed to integrate nutritional value-added in

their food and beverage businesses. This unit will drive the nutrition, health and
wellness organization across all their food and beverage businesses. It encompasses a
major communication effort, both internally and externally, and strives to closely
align Nestlé’s scientific and R&D expertise with consumer benefits. This unit is
responsible for coordinating horizontal, cross-business projects that address current
customer concerns as well as anticipating future consumer trends.

 International strategy

1.Focus on Foreign Direct Investment

Nestlé is a global organization. Knowing this, it is not surprising that international

strategy is at the heart of their competitive focus. Nestlé’s competitive strategies are
associated mainly with foreign direct investment in dairy and other food businesses.

Nestlé aims to balance sales between low risk but low growth countries of the
developed world and high risk and potentially high growth markets of Africa and
Latin America. Nestlé recognizes the profitability possibilities in these high-risk
countries, but pledges not to take unnecessary risks for the sake of growth. This
process of hedging keeps growth steady and shareholders happy.

2. Partnership with other large companies

Another strategy that has been successful for Nestlé involves striking strategic
partnerships with other large companies. In the early 1990s, Nestlé entered into an
alliance with Coca Cola in ready-to-drink teas and coffees in order to benefit from
Coca Cola’s worldwide bottling system and expertise in prepared beverages.

3. Acquire local companies

In Asia, Nestlé’s strategy has been to acquire local companies in order to form a
group of autonomous regional managers who know more about the culture of the
local markets than Americans or Europeans. Nestlé’s strong cash flow and
comfortable debt-equity ratio leave it with ample muscle for takeovers. Recently,
Nestlé acquired Indofood, Indonesia’s largest noodle producer. Their focus will be
primarily on expanding sales in the Indonesian market, and in time will look to export
Indonesian food products to other countries

 SWOT ANALYSIS OF NESTLE

Strength:

Nestlé’s has much strength.

1.Their first is that they have a great CEO, Peter Brabeck. Brabeck emphasizes
internal growth, meaning he wants to achieve higher volumes by renovating existing
products, and innovating new products. His explanation of renovation is that “to just
keep pace in the industry, you need to change at least as fast as consumer
expectations.”(Hitt, 2005)
2.His explanation of innovation is “to maintain a leadership position,you also need to
leapfrog, to move faster and go beyond what consumers will tell you.” Brabeck has
led Nestle into a position to better achieve the internal growth targets with his.

3.Another strength that Nestle has is that they are low cost operators. This allows
them to not only beat the competition by producing low cost products, but by also
edging ahead with low operating costs.

Weakness:

1.The main weakness of Nestle is that they were not as successful as they thought
they would be in France. The launch in France was in1994, but since the late 1980s,
Danone had already entered the market with a health-based yogurt.

2.The second weakness is that LC-1 was positioned as too scientific, and consumers
didn’t quite understand that LC-1 was a food and not a drug.

3.Nestle also has multiple critical resources. They have a great research and
development team. James Gallagher and Andrea Pfeifer were the masterminds behind
the research on the La-1 cultures in the LC-1yogurt. They were also the two that
decided on selling LC-1 as a functional food. This enabled Nestle to position the
product in a way that differentiated it among the other products in the market. They
also have four pillars that Brabeck, Nestle’s CEO has identified he believe swill help
their internal growth worldwide. These are operating excellence, innovation and
renovation product availability, and communication

 Opportunities

1.One opportunity that Nestle has is that health-based products are becoming more
popular in the world, including in the United States.

2.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.

3.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.4.Another opportunity of LC1 is that, because
they are a market leader, they can introduce more health-based products in
Germany.5.As nestle has more then 9000 brands all over the world .they are
increasing their products day by day. With very new changes. Like now they are
introducing Nestle LEMU Malta

Threats:

1.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
Danone was the first to arrive in the market, they have always been the market leader
there.

2.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.3.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.4.The main threat of Nestle these days is the
campaign led by the International Nestlé Boycott Committee primarily targets
Nescafe, the corporation’s flagship product. To boycott Nestlé products until the
company stops promoting its baby milk .

5.Another threat now a days is in nestle pure life. As it’s the leading brand and people
prefer Nestle pure life but their may be a threat from aqua fena which is introduced by
Pepsi.

6.Threat of Olper Milk and Haleeb Milk

 Competitors Of Nestle Globally

Nestlé towers over its competitors as the world’s largest food company, proudly
proclaiming “good food, good life.” Not so good is Nestlé’s reputation for corporate
abuse throughout its operations, ranging from the marketing of infant formula to the
production of its chocolate and bottled water. Nestlé has been the target of strong
international criticism for its aggressive marketing of infant formula in countries with
scarce potable water, leading to a reduction in breastfeeding and increased risk for
infants. Nestlé is one of the top four water bottling companies in the world,
contributing to the problem of plastic waste as well as the usurping of water that
should remain a shared resource.

Competitors

-Cadbury Schweppes. -Campbell soup

-Chiquita brands -coca cola

-conagra foods. -Danone

-Dean foods. -Dole

-Hershey. -kellogg

-General mills. -H.J.Heinz company

-Kraft foods. -Mc Donald’s

-PepsiCo. -Procter and gamble

-Sara lee. -smith field foods

-star bucks. -Tyson foods

-Unilever. -vivendi universal S.A

 Products Marketed in Pakistan

Locally Produced Products

A broad range of products is produced locally. These are grouped under the six broad
categories listed below:

Dairy Products:
  MILKPAK UHT Milk

MILKPAK pioneered the UHT market in 1981. A major re-launch in

1997repositioned the brands the perfectly pure and natural milk. This enhanced its
brand image, and simultaneously strengthened its leadership in the market. It is
currently available in three different sizes: 250 ml, 500 ml, and 1000 ml.

 MILKPAK UHT BUTTER

MILKPAK butter was launched in 1985. It has an established consumer base, and
significant market share. It is available in two different sizes: l00g, and 200g.

 MILKPAK UHT Cream

MILKPAK UHT cream was launched in 1986. It is the market leader in the cream
segment, and has a high degree of brand loyalty. It is available in the 200ml slim
pack.

 MILKPAK Desi Ghee

MILKPAK Desi Ghee was launched in 1986. It has gained a dominant market share
due to its aroma, taste, and quality, and also by capitalizing on the MILKPAK brand
name. It is available in a 1000ml tetra pack.

 EVERYDAY Dairy Whitener

EVERYDAY, a spray dried instant dairy whitener was launched in 1992 to tap the
potential offered by the large tea drinking consumer segment, and also to expand the
overall powder milk market. EVERYDAY dairy whitener, backed byan aggressive
marketing strategy, has shown tremendous growth and holds great promise for the
future. EVERYDAY is available in three different sizes: 200g,500g, and l000g.

 NESTLE EVERYDAY UHT

Nestle Everyday UHT was launched in October 2001 .it is a special milk for tea that
enhances the tea taste like no other milk can! It is available in 375ml, 200ml,125ml
pack sizes.
  NIDO

Prior to local production commencing in 1990, NIDO had been imported for roughly
two decades. NIDO had established itself as the market leader in the instant
powdered, full cream ‘vitaminized’ milk (as it is enriched with vitamins A and D)
category before 1990. Presently, major efforts are directed towards expanding the
powder milk market that holds the potential to grow rapidly. NIDO is available in
200g (soft pack), 500g (soft pack), and l000g (pouch) sizes that are locally produced,
whilst an 1800g tin is imported.

 GLORIA

Gloria full cream milk powder was launched in 1991, and is sold in bulk (25kg packs)
to industrial consumers, and to end consumers per se. In 1997, GLORIA skimmed
milk powder was also introduced under the GLORIA brand.

 NESTLE NESVETA

Nestle Nesvita Hi- calcium low fat milk was launched in sep 2003 .it is available in
sizes 500ml and 1000ml TBA slim.the main competitors and pioneer in the market is
SKIMZ.it available in both powder and liquid form .it is a low fat milk less than 1%
fat with no extra benefits and has an esitimated 45% share of the market

It is best suited for weight conscious people as well as those trying to maintain low
cholesterol.

 Nestle Milkpak Ltd. (A brief history Nestle Milkpak Ltd.)

The joint venture between Milkpak Ltd. And Nestle S.A. came about in 1988 and the
company was renamed as Nestle Milkpak Ltd. Prior to that, Milkpak Ltd., produced
UHT milk, butter, cream, desi ghee and fruit drinks at Sheikhupura factory. 21
branded product lines were added during 1990 to 1998. Nestle Milkpak operates the
largest and an extremely efficient milk collection system in the country, which
enables it to collect the highest quality milk for production of UHT and powder milks
as well as other milk based products. The company voluntarily provides extension
services of farmers in the area of animal husbandry and livestock breed improvement.
  UHT

Means Ultra Heat Treatment. In this process the milk passes through 140oC in
3seconds and then immediately cooled to 20oC in the next 5 seconds, which in turn
kills all the bacteria. This is the most sophisticated and advanced process in the world.
At Milk Pak we use the indirect method of UHT meaning that milk is heated by steam
passing through stainless steel pipes outside milk. All other brands in Pakistan use the
direct method of heating that is by injecting steam in the milk, this adds water content
in the milk, where as indirect heating in fact evaporates water from the milk. This is
what makes Milk Pak the "Thickest Milk".

 FEATURES

Consumers everywhere know that only Milk Pak is the thickest, pure and hygienic
milk. Milk Pak is pasteurized, homogenized, and standardized pure UHT milk of the
highest standard .the result have been very heartening as 59% respondents preferred
NESTLEMILK over HALEEB .It’s a premier brand, and the choice of quality-
conscious consumers who only want the best. Pack in easy to open, 6-layered Tetra
Pak Brick Aseptic packaging.

 Regional Sales Offices

Nestle Milkpak Ltd. Has sales offices throughout Pakistan. The ten(including the
federal Capital) cities in which the sales offices located are:

 Karachi (Sindh)
 Hyderabad (Sindh)
 Quetta (Balauchistan)
 Peshawar (NWFP)
 Gujranwala (Punjab)
 Faisalabad (Punjab)
 Multan (Punjab)
 Lahore (Punjab)
 Islamabad (Federal Capital)
 North Outstation

Target Market Of Nestle Dairy Products:

The customers of Nestle Dairy products in Pakistan are the local people with at least a
little higher level of income for its milk products. By offering different confectionary
and instant food products etc. the company has tried to capture the market of children.

Milk:

Milk is used in every home and all age group people drink milk so nestle target
market of milk is for all age group people who have at least higher level of income.

Nestle Nesvita:

Those persons who are diet conscious and want low fat milk prefer Nestle nevita they
are mostly youngsters

Every Day:

Every day is used for tea .and it target market is mostly those people who love tea and
it is used in offices, restaurants, colleges, homes.

Nido: Nido is famous in up growing children’s. So Nido target market is children’s.

 Competitors of Nestle dairy products

As nestle provide quality products .so it’s the leading company all over the world in
all its products. It has also some competitors of its dairy products in Pakistan.

Nestle dairy products Competitors

Milk pak Haleeb, nur pur, olper

Nido No competitor

Everyday No competitor

Nestle butter Blue band butter, haleeb butter

Nestle pure life Aqua phena

Yogurt Prime, haleeb

Kit-Kat Mars, sneaker, Cadbury

Cereals No competitor

 Haleeb& Olper

Haleeb and Olper are the main competitors of Nestle milk. But mostly people prefer
Nestle milk pak because of its good taste and good packaging. It is also UHT treated.
Nestle price is also reasonable. And quality is out class.

 Prime

Prime is the competitor of nestle yogurt. But mostly people prefer nestle yogurt
because of it’s good packaging and taste.

 PRICE PLANNING
Global pricing policies:

Apart from global coordination of prices on specific products and firms usually adopt
one of the three alternative pricing policies that cut across their product lines. These
are

1.Polycentric pricing

2.Geocentric pricing

3.Ethnocentric pricing

Nestle use geocentric pricing policy.

Nestle Products price planning

 Nestle dairy products are priced keeping in view the buying power of middle-
income and high-income social classes.

 The cost includes the cost of manufacturing, labours, raw materials etc. The
industry sales growth is largely driven by population growth as well as the
amount of advertising and product innovation taking place in the industry.
The company has resorted to pricing discrimination strategies to maximize
the value of consumer demand.

 Being a multinational brand, the pricing objective of Nestle is mainly to

increase sales as it has already penetrated the market. Their prices are not
affected by price changes by competitors, and they don’t engage in price
wars. Competition is met through innovation. The prices of Nestle milk
change as the product size is changed of the Product Life Cycle. And Because
of the contract between the seller companies, they offer same price. So there
is no skim based or penetration based pricing by company.
  The retail prices are different according to there size and brand. However
prices have been standardized throughout Pakistan and there is no
differentiation

based on geographical areas. There is no change in prices according to season. It

remains the same.

 They adopt same strategy in international marketing as in local marketing.

But the prices are according to the international currency.

 Promotion planning

 Promotion planning of dairy products

The promotion of Nestle Dairy product are no doubt the best of all. Its intense
advertising has really captured the minds of all categories of people besides media
advertising; the company has signed several agreements with different sports in order
to promote. For the Advertising, the company has a policy that the commercial should
best communicate its message toward its target markets. The promotional planning of
Nestle milk has taken the emotions of youngsters quite successfully. Promotion is
handled by the marketing department but campaigns are launched through an agency.
Promotion is done through the electronic media, billboards and print media(press).

 Promotion objectives

 To project sales of Nestle Dairy Products

 To create awareness among the masses about any new product of Nestle
 To achieve brand loyalty
  Selection of Promotion Media

Selection of promotion media is done on the basis of whether the company wants:

Immediate sales uplift- Achieved through television and other forms of electronic
media

Or

Gradual sales uplift -

Promotion planning depends on marketing push or marketing pull strategy

Nestle milk is not considered a seasonal product in Pakistan, so they do not need to
promote very much.
 NESTLE ADVERTISEMENTS ON TV

 Chocolate:-

“HAVE A BREAK! HAVE A KIT-KAT”

The world primer chocolate brand creates waves in the winter season s Nestle milk
pak Pakistan started aggressive marketing on KITKAT during the winter season.
International TVs on several cable TV channels, heavy outdoor and attractive POS
drew attention on the brand. Sale responded in very positive manner as the brand
managed to penetrate into all income segments.

DAIRY PRODUCTS:

 Everyday:

“ADHOORA HAI JEEVAN TERE BINA-NEW THEMATIC

CAMPAIGN”
 Adhoora hai jeevan tere bina –Life is incomplete without you, was the new
advertising campaign for NESTLE EVERY DAY launched in August 2003, it is the
first joint campaign for both formats i.e. Liquid and powder of the brand NESTLE
EVERYDAY.

“ MAJHE DAR CHAI HO JAYE”

“ MILK PAK Aitebar” Campaign

The highlight of 2003 has been the “MILK PAK Aitebar” Campaign ,launched in may
as an integrated campaign through TV, outdoor , Print and POS, campaign was
instrumental in increasing the sale and market share of NESTLE MILK PAK.

“Khalis Hee Sab Khuchh Hai”

 NESTLE NUTRITION PLANS

“ Nestle Introduces…Your baby’s health planner”

The Ad of Developmental nutrition plans for kids are really impressive for mothers

 Nido
There are also so impressive ads of Nestlé Nido which give your child complete
nutrition in his growing year

See him grow

Healthy and strong

With Nido

 Sponsoring Major and Rural Sport Region

Another mode of promotion for nestle is sponsoring major and rural sport events.
Milo a brand from nestle always sponsors sporting events like badminton to bowling
to the Commonwealth Games. This kind of promotion will always lead to the
awareness of our customers.

 PACKAGING

Since packaging is an integral part of product, nestle propose new packaging in this
marketing plan that is not only attractive and durable, but also functional too. Our
innovative packaging strive to ensure every product packaging guarantees freshness,
safety, convenience and whenever possible environmentally friendly too. Since
packaging is an integral part of our product, we propose new packaging in this
marketing plan that is not only attractive and durable, but also functional too. Our
innovative packaging strive to ensure every product packaging guarantees freshness,
safety, convenience and whenever possible environmentally friendly too.

Since packaging is an integral part of our product, we propose new packaging in this
marketing plan that is not only attractive and durable, but also functional too. Our
innovative packaging strive to ensure every product packaging guarantees freshness,
safety, convenience and whenever possible environmentally friendly too.

Beyond homes, Nestle supplies its product to hotels, airlines, vending machines,
quick-machines, quick-serve restaurants, supermarket, and retailers.
  Distribution Planning

They distribute there products nationally and internationally through out the world.
Nestle are distributed using an indirect channel, that is, dealers. Nestle milk is sent to
warehouses after manufacture.

NESTLE  DEALER  RETAILER  FINAL CONSUMER

They use intensive distribution for marketing coverage. Because its goals are to have
wide market coverage, channel acceptance and high total sales and profits.
Distribution is made nationally and internationally through Motor carriers
Waterways Airways Railroads Through out the country.

it includes suppliers and retailers

Supply chain

There are various departments

Raw material department

Finished goods department

From the finished goods department the product goes to the warehouses

Export Expansion Strategy

There are two types of export expansion strategies

1.Water fall

2.Sprinkler

Nestle use waterfall strategy. It moves gradually to different countries.

Export Entry Mode:-

JOINT VENTURES OF NESTLE

  Shareholders

Nestlé has about 250 000 shareholders, none of whom individually own more than
3% of the shares. As of December 31, 2003, Swiss investors held the major part of
the stock (42%) followed by US citizens (22%) and British (10%), French (8%), and
German (5%)shareholders.

Unfortunately, shareholder identities are not made public under Swiss law, but we
do know that Liliane de Bettencourt, heiress to the L’Oréal fortune and the richest
woman in France, has a holding in Nestlé. Nestlé and L’Oréal have a close
relationship dating back to a shareholder pact made in 1974. Nestlé holds a 26.4%
stake in the world’s largest cosmetics group and has right of first refusal over the
Bettencourt family’s 27.5 percent stake for 10 years, but with no obligation to buy.
Whilst it is unlikely that Nestlé will takeover L’Oréal in the immediate future, it could
well do so in a few years. It already has cosmeceutical joint ventures with L’Oreal
through Galderma and Innéov.

EU clears Coke Nestle deal – Coke-Nestle joint venture

European Union regulators have cleared plans by US firm Coca-Cola and Swiss food
giant Nestle to expand an international joint venture focusing on iced teas and
coffee. IN a statement, the European Commission said there were no competition
concerns, as the new operation would still face “strong competition brands” such as
Unilever’s Lipton. The new enterprise, Beverage Partners Worldwide, will be based
in Zurich, Switzerland. Expanding on a previous arrangement created in 1991 for the
manufacture and distribution of Nestle’s Nestea brand, the new venture will
increase the number of countries in which it operates to 40, from and initial 24.Coke
will add its Tuan Yu Di and Yang Guang teas and Planet Java coffees to the venture,
while Nestle will contribute Belte tea, which is sold in Italy. Analysts say both
companies are looking to capitalise on the growing worldwide appetite for iced teas
and coffees, which have shown better growth than soda in recent years.

Cereal Partners Worldwide

In November 1989, Nestlé S.A. and General Mills, the Minneapolis-based maker of
breakfast cereals, snacks and baking aids, formed a joint venture to produce and
market breakfast cereals worldwide, with the exception of the United States and
Canada. Based in Morges, Switzerland, CPW officially began operations in early 1991.
General Mills’ expertise and technology, combined with Nestlé’s worldwide presence
and marketing experience, quickly led to a breakthrough in Europe, which was
CPW’S First market target.

RESEARCH METHODOLOGY

 Research

Research comprises creative work undertaken on a systematic basis order to increase

the e of this stock of knowledge, including knowledge of humans, culture and society,
and the use stock of knowledge to devise new applications.” It is used to establish or
confirm facts, reaffirm the results of previous work, solve new or existing problems,
support theorems, or develop new theories. A research project may also be an
expansion on past work in the field. To test the validity of instruments, procedures, or
experiments, research may replicate elements of prior projects, or the project as a
whole. The primary purposes of basic research (as opposed to applied research) are
documentation, discovery, interpretation, or the research and development (R&D) of
methods and systems for the advancement of human knowledge. Approaches to
research depend on epistemologies, which vary considerably both within and between
humanities and sciences.

There are several forms of research: scientific, humanities, artistic, economic, social,
business, marketing, practitioner research, life, technological, etc.

The word research is derived from the Middle French “recherche”, which means to go
about seeking”, the term it self being derived from the old French term “recerchier” a
compound word from ‘re-“ + “cerchier”, or “sercher”, meaning ‘search. The earliest
recorded use of the term was in 1577.

 Objectives of research

The objective of research is to find answers to the questions by applying scientific

procedures. In other words, the main aim of research is to find out the truth which is
hidden and has not yet been discovered. Although every research study has its own
specific objectives, the research objectives may be broadly grouped as follows:

1. To gain familiarity with new insights into a phenomenon (i.e., formulated

research studies)

2. To accurately portray the characteristics of a particular individual, group, or a

situation (i.e. descriptive research studies);

3.To analyse the frequency with which something occurs (i.e., diagnostic research
Studies)

4. To examine the hypothesis of a causal relationship between two variables (i.e.,

hypothesis Testing research studies).
  Research Approaches

There are two main approaches to research, namely quantitative approach and
qualitative approach. The quantitative approach involves the collection of quantitative
data, which are put to rigorous quantitative analysis in a formal and rigid manner.
This approach further includes experimental, inferential, and simulation approaches to
research. Meanwhile, the qualitative approach uses the method of subjective
assessment of opinions, behaviour and attitudes Research in such a situation is a
function of the researcher’s impressions and insights. The results generated by this
type of research are either in non-quantitative form or in the form which cannot be put
to rigorous quantitative analysis. Usually, this approach uses techniques like in depth
interviews. Focus group interviews, and projective techniques.

 Types of Research

There are different types of research. The basic ones are as follows.

1.Descriptive versus Analytical: Descriptive research consists of surveys and

fact-finding enquiries f different types. The main objective of descriptive research is
describing the state of affairs as it prevails at the time of study. The term ‘ex post
facto research is quite often used for descriptive research studies in social sciences
and business research. The most distinguishing feature of this method is that the
researcher has no control over the variables here. He/she has to only report what is
happening or what has happened. Majority of the ex post facto research projects are
used for descriptive studies in which the researcher attempts to examine phenomena.
such as the consumers preferences, frequency of purchases, shopping etc. Despite the
ability of the researchers to control the variables, ex post facto studies may also
comprise attempts by them to discover the causes of the selected problem. The
methods of research adopted in conducting descriptive research are survey methods of
all kinds, including correlational and comparative methods. Meanwhile in the
Analytical research, the researcher has to use the i already available facts or
information, and analyse them to make a critical evaluation of the subject

2. Applied Versus Fundamental: Research can also be applied or fundamental

in nature. An attempt to find a solution to an immediate problem encountered by a
firm, an industry. a business organisation or the society is known as applied research.
Researchers engaged in such researches aim at drawing certain conclusions
confronting a concrete social or business problem. On the other hand, fundamental
research mainly concerns generalizations and formulation of a theory. In other words,
"Gathering knowledge for knowledge's sake is termed 'pure" or "basic" research"
(Young in Kothari 1988). Researches relating to pure mathematics or concerning
some natural phenomenon are instances of Fundamental Research. Likewise, studies
focusing on human behaviour also fall under the category of fundamental research
Thus, while the principal objective of applied research is to find a solution to some
pressing practical problem, the objective of basic research is to find information with
a broad base of application and add to the already existing organized body of
scientific knowledge.

3. Quantitative versus Qualitative: Quantitative research relates to aspects

that can be quantified or can be expressed in terms of quantity. It involves the
measurement of quantity or amount. Various available statistical and econometric
methods are adopted for analysis in such research. Which includes correlation,
regressions and time series analysis etc.. On the other hand, Qualitative research is
concerned with qualitative phenomena, or more specifically, the aspects related to or
involving quality or kind. For example, an important type of qualitative research is
Motivation Research, which investigates into the reasons for certain human
behaviour.

The main aim of this type of research is discovering the underlying motives and desire
of human beings by using in-depth interviews. The other techniques employed such
research are story completion tests, sentence completion tests, word association tests,
and other similar projective methods.
Qualitative research is particularly significant in the context of behavioural sciences.
which aim at discovering the underlying motives of human behaviour. Such research
helps to analyse the various factors that motivate human beings to behave in a certain
manner, besides contributing to an understanding of what makes individuals like or
dislike a particular thing However, it is worth noting that conducting qualitative
research in practice is considerably a difficult task. Hence, while undertaking such
research, seeking guidance from experienced expert researchers is important.

3.Conceptual versus Empirical: The research related to some abstract idea or

theory is known as Conceptual Research. Generally, philosophers and thinkers use it
for developing new concepts or for reinterpreting the existing ones. Empirical
Research, on the other hand, exclusively relies on the observation or experience with
hardly any regard for theory and system Such research is t data based, which often
comes up with conclusions that can be verified through experiments or observation
Empirical research is also known as experimental type of research, in which it is
important to first collect the facts and their sources, and actively take steps to
stimulate the production of desired information. In this type of research, the
researcher first formulates a working hypothesis, and then gathers sufficient facts to
prove or disprove the stated hypothesis, He/she formulates the experimental design,
which according to him/her would manipulate the variables, so as to obtain the
desired information.

This type of research is thus characterized by the researcher's control over the
variables under study. In simple tem empirical research is most appropriate when an
attempt is made to prove that certain variables influence the other variables in some
way. Therefore, the results obtained by using the experimental or empirical studies are
considered to be the most powerful evidences for a given hypothesis.
Importance Of Knowing How To Conduct Research:

The importance of knowing how to conduct research are listed below:

i. The knowledge of research methodology provides training to new researchers

and enables them to do research properly. It helps them to develop disciplined
thinking or a “bent of mind” to observe the field;

ii. I The knowledge of doing research includes the ability to evaluate and utilize
the research Findings with confidence.

iii. The knowledge of research methodology equips the researcher with the tools
that help Him/her to make the observations objectively, and
 iv. The knowledge of methodology helps the research consumers to evaluate
research and make rational decisions.

RESEARCH METHODS AND RESEARCH METHODOLOGY

-Is there any difference between research methods and research methodology?

Research methods are the various procedures, schemes and algorithms used in
research. All the methods used by a researcher during a research study are termed as
research methods. They are essentially planned, scientific and value-neutral. They
include theoretical procedures. Experimental studies, numerical schemes, statistical
approaches, etc. Research helps us collect samples, data and find a solution to a
problem, Particularly, scientific research methods call for explanations based on
collected facts, measurements and observations and not on reasoning alone. They
accept only those explanations which can be verified by experiments,

Research methodology is a systematic way to solve a problem. It is a science of

studying how research is to be carried out. Essentially, the procedures by which
researchers go about their work of describing, explaining and predicting phenomena
are called research methodology. It is also defined as the study of methods by which
knowledge is gained. Its aim is to give the work plan of research.

VARIOUS STAGES OF A RESEARCH

Whenever a scientific problem is to be solved there are several important steps to

follow. The problem must be stated clearly, including any simplifying assumptions.
Then develop a mathematical statement of the problem. This process may involve use
of one or more mathematical procedures. Frequently, more advanced text books or
review articles will be needed to learn about the techniques and procedures. Next, the
results have to be interpreted to arrive at a decision. This will require experience and
an understanding of the situation in which the problem is embedded. A general set of
sequential components of research is the following:
1. Selection of a research topic

2. Definition of a research problem

3. survey and reference collection

4. Assessment of current status of the topic chosen

5. Formulation of hypothesis

6. Research design

7. Actual investigation

8. 8.Data analysis

9. 9.Interpretation of result

10. Report