Nestle S.A. is a Swiss transnational food and
beverage company headquartered in Vevey, Vaud,
It is the largest food company in the world measured
by revenues, and ranked #72 on the Fortune Global
500 in 2014.
Nestles products include baby food, medical food,
bottled water, breakfast cereals, coffee and tea,
confectionery, dairy products, ice cream, frozen food,
pet foods, and snacks.
Twenty-nine of Nestlé’s brands have annual sales of
over CHF1 billion (aboutUS$1.1 billion) including
Nespresso, Nescafé Kit kat, Smarties, Nesquik,
Stouffer’s, Vittel, and Maggi. Nestlé has 447 factories,
operates in 194 countries, and employs around
In the 1860s Henri Nestlé, a pharmacist, developed a food for babies. 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.
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, Nescafe, which was a staple drink of the US military.
Nestlé’s production and sales rose in the wartime economy.
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
Nestlé in Pakistan is operating
since 1988 under a joint venture
with Milk Pak ltd and took over
management in 1992.
Nestle Pakistan today is the
leading Food & Beverages
Company in Pakistan with key
focus on Nutrition, Health and
Wellness and reaching the
remotest of locations throughout
Pakistan to serve the consumers.
Nestlé Pakistan also prides itself
in being the leaders in Nutrition,
Health & Wellness.
As a socially responsible
corporate, company always focus
on environment friendly
operations, ethical business
ONE PRODUCTI choose the dairy products for my report .and my main focus is on Nestle
milk PAK because in Pakistan it is used everywhere.
PRODUCTS MARKETED IN PAKISTAN
Business Areas Products Marketed in Pakistan—Business Areas
Locally Produced Products
A broad range of products is produced locally. These are grouped under the six broad categories listed below:
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 a significant market share.
It is available in two different sizes: l00g, and 200g.
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 MILK PAK 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 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, and 125ml pack sizes.
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
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 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
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
estimated 45% share of the market
NESTLE MILK PAK LTD. (A BRIEF
The joint venture between Milk Pak Ltd.
And Nestle S.A. came about in 1988 and the company was renamed as
Nestle Milk Pak Ltd. Prior to that, Milk Pak Ltd.
Produced UHT milk, butter, cream, desi ghee and fruit drinks at
Sheikhupura factory. 21 branded product lines were added during 1990 to
Nestle Milk Pak 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
The company voluntarily provides extension services of farmers in the area
of animal husbandry and livestock breed improvement.
WHY NESTLE IS AN
Market in which nestle is operating In Pakistan is oligopolistic where as an
oligopoly is a market dominated by a few large suppliers.
Firms within an oligopoly produce branded products (advertising and
marketing is an important feature of competition within such markets) and there
are also barriers to entry.
E.g. main competitor of nestle in Pakistan is Engro foods.
Nestle produces brands of milk Pak or all pure where as Engro produces
brands of Olpers or Olfrute.
Nestle captures the market share of 51% and Olpers captures the market
share of 38%.
Both launches the strong advertisement campaigns for sales or promotion like
OLpers shows religious affiliation with its customers (e.g. Ramadan sehri and
aftari) respectively nestle launches different consumer awareness campaigns.
COMPETITORS OF NESTLE
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
Nestle dairy products Competitors
Milk Pak Olpers and Nurpur
Nestle butter Blue band butter
Nestle cream Olpers cream
Kit Kat Mars, sneakers and Cadbury
NESTLE SALES STRATEGIES
Nestle foods was established in 1866.
Nestle juices is worldwide number one and fastest growing food
The company is trying their level best to differentiate themselves from
local companies and trying to win the competition by adopting the
and technologies in both operational fields as well as in marketing of
Nestle uses the following strategies which are the reason behind its
Nestle first launched its powder milk in the market in 2003 and then came
Nestle has introduced the milk powder which outshined others because of
taste, refrigeration, ready to drink, less volume, more stable shelf life.
The entire production of the Nestle Every day is carried out in Pakistan at
Sheikhupura and Kabianwala.
At Nestle the Research and Development department is called as the “APPLI
NGROUP”. No other company matches the R&D presence of Nestle. No other
company dedicates so many human and financial resources to R&D as
The technology is imported and is latest
The factory mil powders spray drying capacity was doubled in 1999 with
commissioning of new evaporator.
The actual target is a company’s secret that will not be disclosed. But we
an overwhelming acceptance and liking of the product
Price of product:
Nestle sets prices of their products according to the market demand as low
possible because nestle is the trend setter in the market.
Profit margin of the product:
The profit margin is usually high because of the high quality of the
Does the price fluctuate or they remain stable?
As the product is a diary product so its prices generally trend to fluctuate.
Scale of prices:
The prices are fixed on a reasonable scale so that majority of public can
Channels adopted for promotion:
Nestle has adopted the channels for promotion through TV, Newspapers,
magazines Doctors and hoardings etc.
Advertisement budget of the company:
Nestle has preplanned to start the financial year but it is kept secret b the
Sponsors of the company:
Nestle does not have any sponsors.
Share of promotion:
Share of promotion in overall projects varies every year. Usually it is 40%
Nature of marketing:
The product is marketed aggressively in the market.
Outlets of product located:
Nestlé’s products are located all over in Pakistan regardless of big and
Directly sales to the consumers or via distributors:
Nestlé’s products are not sold directly to the customers because of
It is the reason they use the sale the products through distributors for
Insurance policies of companies:
Nestlé’s insurance policies are maintained but they are highly
Warehousing facilitation of company:
Nestle has its own warehouses for the storage of products as well as it
This is competitive world and must never forget that customers have a choice.
If they are not satisfied with a Nestlé, 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.
Nestlé 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.