Transcript
Principles of MarketingReport Presentation
Presented by : Abdul Rahman Adeel
Presented to : Sir Mudassir Hussain
Student ID : 59311
• Found in 1877 by the merger of “Anglo Swiss condenced milk company” and “Farine Lactée Henri Nestlé”.• A baby food mixture was the core product of Nestle initially.• Rose it’s production and sales during the last years of second world war.• Acquired a number of companies during the 1900s.• Acquired the ice cream manufacturing company dreyer in 2005 and became the largest ice cream manufacturer of the world.• Today Nestle is known as the leading food and beverages organization over the world.• Operates in 194 countries, has 447 factories and employees over 333000 people over the world.• Has the major share in world’s largest cosmetics company L’Oreal.• Was ranked # 1 in the world’s most profitable organizations in 2011 by the Fortune Global 500.
Getting to know Nestle
Nestle in Pakistan• Arrived in Pakistan by a joint venture with Milkpak in 1988.• Acquired the company in 1992.• Subsidiary of Nestle SA ltd. Vevey, Switzerland.• Operates as a public limited company in Pakistan, listed in Karachi and Lahore stock exchanges.• Has corporate head office in Lahore.• Corporate resident office in Karachi.• Regional sales offices in 9 cities.• Employess over 3500 individuals.• 4 production facilities.• Started operations for Afghanistan as well.• Signed the water stewardship agreement with WWF-Pakistan.• Engages with 190’000 farmers.• Won awards from Karachi stock exchange and Pakistan center of philantrophy for it’s remarkable progress and social responsibility.
Management Committee
Offices and Factories
Mission and Vision Statement
Mission Statement:“To positively enhance the quality of life of the people of Pakistan by all that we do through our people, our brands and products and our CSV activities.”
Mission and Vision StatementVision Statement:“Nestlé’s global vision is to be the recognized leading Nutrition, Health and Wellness Company. Nestlé Pakistan subscribes fully to this vision of being the number one Nutrition, Health, andWellness Company in Pakistan. In particular, we envision to; • Lead a dynamic, motivated and professional workforce proud of our heritage and positive about the future.• Meet the nutrition needs of consumers of all ages from infancy to old age, from nutrition to pleasure, through an innovative portfolio of branded food and beverage products of the highest quality.• Deliver shareholder value through profitable longterm growth, while continuing to play a significant and responsible role in the social, economic, and environmental sectors of Pakistan.”
Product Portfolio
Ambient Dairy•Nestle Milkpak•Nestle Nido•Nestle Milkpak Cream•Nestle Nido•Nestle Everyday•Nesvita
Chilled dairy•Nestle Chilled Latte•Nestle yogurt•Nestle riwayati maza •Nestle Actiplus yogurt•Nestle Milkpak Yogurt•Nestle zeera Rait•Nestle Podina Raita
Beverages•Nestle fruita vitals•Nestle Nesfruita
Bottled Water•Nestle Pure life
Culinary and food•Maggi Noodles•Maggi Umda MAza
Baby Food•Nestle Cerelac•Lactogen•NAN
Breakfast Cereals•Nestle Coco crunch•Nestle Milo Cereals•Nestle Corn Flakes•Nestle Fitnesse
Coffee•Nescafe Classic•Nescafe Gold•Nescafe 3 in 1
Confectionery•Nestle Crunch•Nestle Kitkat
BCG Matrix
BCG Matrix (Market shares in percentage)
Milkpak Nestle Pure life
Juices Noodles0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
NestleCompetitors
Ansoff MatrixMARKET
EXPANSION
GRID
Market Penetration (
MP)
Nestle Fruita vitalsNesfruitaNesvita
Market Development (
MD)
Product Development (PD)
Nestle CrunchRelated diversification
(Baby Food, Dairy, Bottled water, confectionery)
Diversification (Div)
PEST Analysis
Political
• Instable political environment
•Fluctuation of taxes
Economical
•High Inflation rate•Low per person capital income
•Low growth rate of economy
•Decreasing value of money
Social
•Rich and unique culture
•Exclusive trends and beliefs
•Society’s ability to adapt
Technological
•Advances in telecommunication technology
•Strong media industry
SWOT AnalysisStrengths• Brand Image• Growing sales and profits• Marketing expertise• Trusted quality• Product availability (Distribution Channel)• Strong Research and development• Socially responsible image
Weaknesses• Higher prices• External sources of raw material
Opportunities• Increasing demand for healthier food• Market ready to adapt new trends• Absense of matching competition• Possibility to introduce area specific stuff
Threats• Uncertain economic conditions• Increasing competition• Food contamination• Raising prices of raw material• Unsure law and order situation
Market Segmentation
Milk products Nestle Pure life
Nesle Fruita VitalsGeographic Segmentation
Demogeaphic Segmentation
Family life cycleAge
OccupationIncomeGender
NesfruitaMaggi Umda Maza
Maggi NoodlesBreakfast Cereals
Nestle NidoNestle Cerelac
NescafeNestle Crunch
Kitkat
Targeting
Undifferentiated/ Mass Marketing •Nestle Milk Pak
•Nestle Pure Life•Nestle Fruita Vitals
Differentiated/ Segmented Marketing
•Nesfruita Juices•Chilled dairy products•Nesvita•Maggi Noodles•Maggi Umda Maza•Baby Food•Breakfast Cereals•Coffee•Confectionery
Positioning
More Healthy, more
nutritious foodTrusted purity
Unmatched Quality
Positioning
Product Life Cycle (PLC)Introduction Growth Maturity Decline
Nesvita
Nestle Chilled coffee
Nesfruita
Nestle Milo Cereals
Nestle Fitnesse
Nestle coco crunch- Cereals
Nestle Crunch
Nestle MilkpakNestle NidoNestle EverydayNestle Fruita VitalsNestle Pure LifeMaggi NoodlesNestle CerelacLactogen and NANNestle Corn flakesNescafeNestle Kitkat
Yogurt
Maggi Umda Maza
Nestle Meethay
Product Life Cycle (PLC)
Introduction Growth Maturity Decline0
2
4
6
8
10
12
Product Life Cycle of Nestle Pakistan
Creating shared value and wealth
Conclusions
Nestle has been earning well for itself and offering ample returns to the society for over two decades now.
Still growing it’s business and product portfolio as no competitor has given matching competition yet.
Positioned as the provider of healthiest and nutriest food in the market.
Has major products in good market strength.
Nestle should focus on developing more new products and exploring more new markets to retain it’s leading position in the food industry of Pakistan.
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