1

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

PROJECT REPORT
On

Strategic
Marketing
NESTLE
COMPA
NY
BY

MOHAMMAD DANYAL KHAN CMS ID: 20299

PRESENTED TO
 2

SIR
MUHAMM
AD ALI
DEPARTMENT OF MANAGEMENT SCIENCES

ACKNOWLEDGEMENTS
“In the Name of Allah most Merciful and Beneficent”

I am very thankful to Almighty Allah who enables me to be able to utilize

my abilities as it is known that all the abilities and skills we have is a Gift of
Allah, and Allah gave me the courage and insight to explore more knowledge to
complete what I have started. And also our parents whose prayers always
supported us in every task.
In making this project come into existence., I am guided by my
experienced “Sir: Mohammad Ali” I am thankful to him who gave me the
opportunity to be able to work on the project and who helped and guide me how
to overcome the problems regarding my project and He motivated me to be able
to complete this difficult task.
THANKS.
 3

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

given references from which sources I got this information and be able to complete
the project.
 5

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

Mission:-

As we see towards the history of the Nestle Company we see that Henri
Nestle is the Founder of Nestle Company. As the company continued its growth so
they also develop new plans and strategies focusing on their Mission Statement
which is “Good Food, Good Life”. These are not just Simple words there is a
meaning of Existence of the Nestle Company which describes the purpose of
companies existence.
That is they focuses on making an influence to the social environment and
operate responsibly and making food which is good for health and utilizing the
resources carefully keeping the environment safe produces good healthy food.

Vision:-
Their Vision is to become a leading competitor among those companies
which are operating in the market with the same aim to provide Healthier food and
to capture large market share and also create value for the customers.
They also wants to become a company which is preferred always, like
among it’s competitors the customer should choose their company. So, keeping
their vision and mission in mind they focus their products and it’s availability in
the market and which is easily accessed by their valuable consumer.

Core Values:
 6

The Company Core values are as follows.

 They focus on to develop a workforce which is highly motivated and can
perform well in the workplace.
 They focus to meet the requirements and needs of their consumer which
comprises of all age groups. They can be from small infant to older age. They
focus on creating high quality products and provide services which are helpful
in capturing great customer value.
 They also focus on maintaining the shareholder’s wealth but keeping in mind
that to perform their operations well with environmental and social
responsibilities.
 Their brands are preferred in comparison of High quality food and Beverage
products.
 They Communicate with their customer and provide them with the relevant
information they need.
 They promote their employees and motivate them to compete and to become
specialized in their work.
 They also have milk collection services which help to develop dairy sector in
the rural areas of Pakistan.
 The organization follows proactive approach which helps them to compete in
the market.
Keeping all the above mentioned points in mind these points help the
Organization to maintain and run their daily operation’s in way which is best
for both the organization and the Share Holder’s and also keeping and running
their customer trust in the long run.

Competitive Advantage
 7

For a company to survive the company must maintain and sustain its competitive
advantage. So, these are the major 10 reasons why Nestle is still competing and is
successful.

 Nutrition, Health and Wellness: Nestlé’s core aim is to enhance the quality
of consumer’s lives every day, everywhere by offering tastier and healthier
food and beverage choices and encouraging a healthy lifestyle. Nestle
express this via their corporate proposition ‘Good Food, Good Life’. Nestlé
Nutritional Profiling System

 Quality Assurance and product safety: Everywhere in the world, the Nestlé
name represents a promise to the consumer that the product is safe and of
high standard. Nestlé Quality Policy

 Consumer Communication: Nestle is committed to responsible, reliable

consumer communication that empowers consumers to exercise their right
to informed choice and promotes healthier diets. Nestle respect consumer
privacy. Nestlé Consumer Communications Principles Nestlé Policy and
Instructions for Implementation of the WHO International Code of
Marketing of Breast-milk Substitutes

 Human rights in Nestlé’s business activities Nestle fully support the United
Nations Global Compact’s (UNGC) guiding principles on human rights and
labour and aim to provide an example of good human rights’ and labour
practices throughout our business activities. International Labour
Organization

 Leadership and personal responsibility Nestlé’s success is based on Nestlé’s

people. Nestlé’s treat each other with respect and dignity and expect
everyone to promote a sense of personal responsibility. The Company
recruit competent and motivated people who respect their values, provide
equal opportunities for their development and advancement, protect their
privacy and do not tolerate any form of harassment or discrimination.

 Safety and health at work: The Company is committed to prevent accidents,

injuries and illness related to work, and to protect employees, contractors
and others involved along the value chain.

 Supplier and customer relations: The Company require their suppliers,

agents, subcontractors and their employees to demonstrate honesty, integrity
 8

and fairness, and to adhere to their non-negotiable standards. In the same

way, they are committed towards their own customers.

 Agriculture and rural development The Company is contributed towards

improvements in agricultural production, the social and economic status of
farmers, rural communities and in production systems to make them more
environmentally sustainable.

 Environmental sustainability: The Company is committed to environmental

sustainability. At all stages of the product life cycle they strive to use natural
resources efficiently, favor the use of sustainably-managed renewable
resources, and target zero waste.

 Water Nestle is committed to the sustainable use of water and continuous

improvement in water management:The Company recognize that the world
faces a growing water challenge and that responsible management of the
world’s resources by all water users is an absolute necessity. Nestlé Water
report Nestlé continues to maintain its commitment to follow and respect all
applicable local laws in each of its markets.

Competitors:
 9

Engro foods and Haleeb foods are the main competitors of

Nestle in Pakistan
& the main strong competitor is Shezan. Nestle produces wide
range of food and medical items. The main competitors of
Pakistan are Unilever and Proctor and Gamble.

Competition typically is defined as among forms within an

industry producing products that are substitutes for one another.
Therefore, the identification and evaluation of marketplace
competitors is a key element of strategic marketing and a vital
element of the corporate survival.

Nestlé is the market leader in the water industry. It is the first

company which launched bottled water for first time in Pakistan
and that’s why it has maximum market share than others
because of being pioneer in this industry. It is also leading the
other firms in new product introductions, distribution coverage,
and promotional intensity.

For different product categories there are different competitors

of Nestlé. Nestle pure life (NPL) major competitors at this time
who are also offering their water product in market are
following:

 Pepsi is offering Aqua Fina

 Askari water

There are also other small competitors as well e.g. Classic, Nova
etc which have very low market segements.

According to market view, competition is defined as:

The competition between the firms, which are satisfying the

same customer, needs.

So according to concept the competitors of NPL are all those

companies, which are satisfying the need of thrust of the
customers. Beverages companies like unilever, Tapal danedar,
Pepsi, Coca cola etc. also come in this kind of the competition.
 10

Boston Consulting Group Matrix

Star Category

 Nestle Milkpak

 Pure life

 Nido

 Cerelac

 Nestle Fruita Vitals (Necter Juices)

These products are widely used by peoples in Pakistan. So to increase market

share. Nestle should decrease the price of these products.

Question Mark Category

 Everyday

 Milkpak Cream

There are some minor default in above mentioned products like there taste and
expiry dates. These products can become star product if these defaults be removed.

Cash Cow Category

 Nestle Dahi

 Maggi

 Kitkat

 Polo

These product can made star products of nestle if nestle add new flavors and do
penetration instead of skimming.
 11

Dog Category

 Nestle Koko Crunch

 Nestle Cornflakes

 Milo

 Nestle Raita

These products are not sold as much due to following factors.

 Targeting specific economic class.

 Not according to taste of peoples.

 Rare peoples like these products.

 12

Products

 UHT Milk:

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

 Nestle NIDO

 Nestle NESVITA

 Nestle MILK PAK

 Nestle EVERYDAY
 13

 UHT Cream
 Nestle MILK PAK CREAM
 Nestle Milkmaid Creations Dessert Cream.
 14

 Infant Foods:

 CERELAC

 Yoghurt:

 NESTLE ACTIPLUS

 NESTLE RAITA

 NESTLE YOGURT

 NESTLE RIWAYATI MAZAA

 Juices:
 NESTLE FRUITA VITALS

 Ready to cook noodles:

 MAGGI NOODLES
 15

 Cereals:

 Water

 Nestle Pure Life

 16

Marketing mix of Nestle Instant Milk

PRODUCT

I have selected Three Nestlé’s Products of Milk Category.

 Nestle Milk (Liquid)

 Nestle Condensed Milk(Dense Liquid)

 17

 Nestle Everyday (Powdered Milk)

 Nestle Launched First Powder milk in 2003 and then they came into Liquid
powder. The Nestle Powder milk because of its good quality helps Nestle to
capture a great customer value.
 Milk Powder which Nestle Introduced has good taste, more stable, ready to
drink, and less volume.
 The Production of Nestle every day is carried out in Sheikhupura.
 They improved the quality of milk by the UHT process. The target markets
for these products are the consumers who drink Tea in their daily routine.
 Industrial consumers of Nestle Everyday instant milk: PIA and
 MC-DONALDS Pakistan.
•

Price of product
Nestle basically sets prices by keeping in mind that they have to capture a greater
customer value and that their products are in the reach of their consumer i.e.: the
consumer has the Pocket to pay for their product. So, in this way the Nestlé’s
product demand increases.
Profit margin of the product
The Company has set its profit margin high because of their products good quality.
Price Fluctuation
The product is related to dairy farms. So, there are chances of price fluctuation. •
 18

Scale of prices
There is a price scale which is set to a specific level. So, the consumer can pay for
the product.
•

PROMOTION
•

Channels adopted for promotion

They basically promote their products through Media, New papers, magazines,
Boarding’s.

Advertisement Cost
As every company planned their financial year. So, Nestle also has a Specific
budget for advertising
•

Nature of marketing
The product is marketed aggressively in the market.
•

Online promotion methods

Nestle does not have yet adopted online promotion methods in Pakistan
but in future it may be possible.

PLACEMENT
•

Outlets of product located

•
Nestlé’s products are located all over in Pakistan regardless of big and small cities.
 19

Directly sales to the consumers or via distributors

Nestlé’s products are not sold directly to the customers because of the extensive
consumer groups. It’s the reason they use the sale the products through distributors
for easiness of company.
•

Insurance policies of companies

Nestlé’s insurance policies are maintained but they are highly confidential.
•

Warehousing facilitation of company

Nestle has its own warehouses for the storage of products as well as it has also
hired some warehouses.

Transportation modes of the product

Usually Nestlé’s mode of transportation is road.

Suggestions for Improvements

This is competitive world and must never forget that customers
have a choice. If they are not satisfied with a Nestlé Product,
they will switch to another brand. The pursuit of highest quality
at any price is no guarantee for success, nor is a single-minded
cost-cutting approach. Lasting competitive advantage is gained
from a balanced search for optimal value to customers, by
simultaneous improvement of quality and reduction cost.
Success can never be taken for granted. 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.

Progress is followed by listening to Nestle customers and by

measuring its works performance. Shortcomings and mistakes
must be analyzed and corrected. Problems must be anticipated
and prevented before they occur. Nestle also must identify and
take advantage of opportunities.
 20

To stand still is to fall behind. So Nestle must strive for

continuous improvement in every area. It is through many small
improvements as well as through major breakthroughs that
Nestle will achieve excellence.

I have observed from my extensive hard-work to compile these

pages, consumer services department is the evidence of such a
pursuit from the organization point of view. Presently the
company is market leader in its category but it shouldn’t take it
as a complacent attitude rather capitalize on its good brand
equity and to improve its quality of product to reap not only more
profits for the shareholder but also serve the humanity by
providing them healthful water which in other way a noble &
sacred job. The company can fulfill this job by having such a
spirit following it religiously by incorporating it all the marketing
strategies.