Report Final Nestle PDF

Preview

Summary

Report about Nestle Company...

Description

i

Letter of Transmittal 15th Aug 2017 Ma’am Madiha Munaf(Lecturer) Mohammad Ali Jinnah University Dear Ma’am, We all are thankful Almighty Allah for giving us the ability and strength to complete this report. Secondly, we are also thankful to our respective parents for providing us with the opportunity to receive higher education in such an accomplished institution that required us to carry out such reports that expand the dimensions of our mind. We are definitely not forgetting to recognize the efforts and support of our teacher Ma’am Madiha Munaf, without whom this project would not have been possible. Who give us the opportunity to work on a project, which not only enlarged our vision but also show, us the real picture of the market Our special thanks to the group members, who have whole-heartedly work for the completion of this report. All of us have earned a valuable and worthy experience during the report. Sincerely

ii

3

EXECUTIVE SUMMARY “This is an informative report on Nestle Pakistan Private Limited in this report I have described how Nestle came into being internationally and in Pakistan. Through my research I found out how much Nestle cares about its consumers. Good food Good life is the principle they always follow. l have described the complete list of Nestle products in Pakistan, the milestones that Nestle reached in Pakistan, the marketing strategies Nestle uses and I have explained the financial performance of Nestle.” Nestle Pakistan Limited (NPI.), formerly known as Nestle Milkpak Limited is a subsidiary of Nestle SA - a company of Swiss origin headquartered in Vevey, Switzerland. It is listed on Karachi and Lahore stock exchanges. For the 5 years in a row, the company has placed among top 25 companies of the KSE. Its principal activities are to manufacture process and sell food products and ancillary equipment. The food products include dairy, confectionery and culinary products, coffee and beverage and drinking water. The major brands include Milkpak UHT, Nestle Every day, Lactogen and Nescafe. Nestle has been serving Pakistani consumers since 1988, when its parent company, the Switzerland-based Nestle SA, first acquired a share in Milkpak Ltd. In line with its parent company's global philosophy, it is proudly committed to excellence in product safety, quality, and value. Today, the company is fully integrated in Pakistani life. And is recognized as producer of safe, nutritious and tasty food, and leader in developing and Uplifting the communities in which it operates. Since the establishment of Nestlé they have been committed to nurturing the people globally. The world's leading food and Beverages Company, and leaders in health and wellness, they try to cater to all our family's nutritional needs, no matter where in the world we live. Understanding that people in every country have different tastes and needs, they have developed arrange of food and lifestyle products. In Pakistan we can find NESTLÉ. Their popularity has come not just from acquisition and corporate expansion, but also from a care for the everevolving needs of customers. Thus, along with old favorites such as NESTLÉ, KITKAT chocolates and NESCAFE, the world's most popular coffee, they keep introducing new, exciting options worldwide. Nestlé Pakistan Limited is a Pakistan- based food and beverages company. The Company is engaged in manufacturing, processing and sale of food products. Nestlé has been serving Pakistani consumers since 1988, when their parent company, the Swiveled- based Nestlé SA. First acquired a share in Milk pak Ltd. Nestlé Pakistan Limited is listed in Karachi and Lahore 4

Stock Exchanges for the past five years and has been declared one of the top 25companies in the Karachi Stock Exchange by 2014. Nestlé Pakistan aims to be a Rs. 100 billion company. Nestlé offers tremendous opportunities for career growth and learning at domestic and international levels. With over 8000 brands preferred for their good quality, taste and health benefits. Nestlé is the number one food company in the world. Nestlé is leading the change in the food industry as it is also the leading food company in terms of having the largest set up of research and development in food science and nutrition. They are uniquely positioned to provide products that help consumers live a good life. Many Nestlé brands have benefited from the active ingredients developed by Nestlé research and with over 130 years of expertise, consumers know that they are getting the best in quality when they choose a Nestlé brand. Happy and healthy consumers are at the heart of what they do. Their philosophy is summed up in the phrase "Good Food, Good Life: and they remain committed to help consumers choose better tasting and healthier products to help them enjoy happier, healthier lives. The customers of NPL showed interest on NPL because of trust on Quality of Nestlé, at the heart of which there are qualitative products and its long term commitment to deliver better products to consumers. Being the market leader, the market share of NPL is 78% that is much higher than its competitors. NPL is passing through its Growth stage (of Product Life Cycle) i.e. its sales are increasing tremendously and competitors are entering in the market like Aqua Fina by Pepsi and Askari Waters. There are different SKU’s of NPL to cover a wide market needs like for Home and office delivery there are 3gallon and 5 gallon bottles (bulk usage) and for day to day usage easily carrying light weight like “1.5, 0.5, 0.2 liters” bottles are available in the market. Still Nestlé is working on bringing the changes and innovation in this field. For this it has close relationship with its suppliers and distributors to get their suggestion to improve the quality of NPL. Nestlé Pakistan also has the Customer Service Department with the logo "Talk to Nestlé" in Lahore to receive the complaints and suggestions from the customers. In this way Nestlé analyze its market and becomes aware of the new market trends.

-:---------------------------:-

5

INTRODUCTION 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 Report 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 Report”. 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 report and then at last I have given references from which sources I got this information and be able to complete the project.

BACKGROUND Their story of Nestlé begins in 1867, when Henri Nestlé developed a baby formula that saved a child's life and marked the beginning of Nestlé’s decades-old commitment to nutrition. In the 140 years since then, they have expanded around the world and developed a range of products designed to suit every taste, need and cultural preference. Their distinctive seal is recognized everywhere as a guarantee of quality and healthfulness. Their responsibility does not simply lie in perfecting the products they develop, but the role their products play in making lives better both for their consumers and for communities in the countries they serve. They keep introducing new exciting options worldwide. Nutrition, quality and convenience remain the keystones of their products and even as they confront the new century's challenges, they feel it is their duty to adapt to the changing needs of consumers.

PROBLEMS Nestle is facing the problems that is regarding the quality of milk. It is being perceive that infant or child belonging to poor family who use low quality milk then required in daily use are getting affected. It is hard to agree the costumer to switch to pack milk because of taste which is hurdle for further expansion.

6

OBJECTIVE Nestlé’s purpose is to offer safe, tasty, convenient and nutritious foods to improve health and well-being of consumers of all ages all over the world. To meet the needs and desires of today’s and tomorrow’s consumers, Nestlé is strongly committed to Research and Development (R&D) to improve existing products and develop new foods with specific health benefits.

SCOPE This report will address the strategies followed by the Nestle Company and we are promoting Nestle Company. I have portrayed how Nestle appeared globally and in Pakistan. Through my examination I discovered the amount Nestle thinks about its shoppers. Great nourishment Good life is the rule they generally take after. l have depicted the entire rundown of Nestle items in Pakistan, the points of reference that Nestle came to in Pakistan, the advertising techniques Nestle uses and I have clarified the money related execution of Nestle.

7

LITERATURE REVIEW In the mid-1860s Nestlé, a trained pharmacist named Henri Nestlé began experiments with various combinations of cow's milk, wheat flour and sugar in an attempt to develop an alternative source of infant nutrition for mothers who were unable to breast feed. His ultimate goal was to help combat the problem of infant mortality due to malnutrition. He called the new product Farine Lactée Henri Nestlé. Nestlé's first customer was a premature infant who could not tolerate any of the conventional substitutes, and had been given up for lost by local physicians. People quickly recognized the value of the new product, after Nestlé's new formula saved the child's life and within a few years, Farine Lactée Nestlé was being marketed in much of Europe.Henri Nestlé also showed early understanding of the power of branding. Nestlé means 'little nest'. Nestlé was created in 1867. Nestlé is today the world’s leading food company, with a 140-year history and operations in virtually every country in the world. Their principal assets are not office buildings, factories, or even brands. Rather, it is the fact that they are a global organization comprised of many nationalities, religions, and ethnic backgrounds all working together in one single unifying corporate culture. Their culture unifies people on all continents, with roughly half their factories and people located in the developing world. Nestlé has been serving the world for over one hundred and thirty years. It has differentiated itself through its high quality product mix and positioned itself as health and Nutrition Company while targeting the health conscious people throughout the world. Nestlé started its operations in Pakistan back in 1988, by acquiring a diary company MILKPAK LTD. A qualified workforce, trained by Nestlés or emerging from a strong educational and industrial context, strongly influences the company’s ability to be globally competitive. The fair treatment and development of company staff and the strengthening of the local workforce are essential long-term investments. They reinforce the conditions for growth and sustained economic development in the locations where Nestlé operates. Nestlé’s ability to employ thousands of people each year is an important contribution the company makes towards future generations, providing income to families who can enhance their chances at better education, healthcare and standard of living for entire families and communities. Pakistan is the fifth world’s largest milk producing country, therefore, Nestlé deals mainly in dairy products. Moreover it also sells juices, chocolates, prepared food like noodles, baby food, infant formula milk, mineral water and breakfast cereals. Nestlé is a low cost leader with its efficient operations. Hence, it provides to customers with high quality products and sells them at an affordable price. The company has set its manufacturing plants at in Karachi, Lahore, Islamabad and Kabirwala. The milk processing plant at Kabirwala district is the Nestlé’s world largest milk processing plant. 8

When Nestlé introduced their products in Pakistan people were neither aware nor accustomed to them. Nestlé runs an extensive marketing campaign to educate people and create awareness among the people of Pakistan about their products. Pakistan is a land where fresh eatables are readily available. Nestlé should sell the same quality of products in Pakistan as it sells abroad. It should also introduce more brands in Pakistani market which it offers in other markets of the world since consumers in Pakistan are becoming more demanding day by day. This report is an informative report; our team described a brief back ground of how Nestle came into being and how it reached Pakistan. Good food good life is not just a part of their logo they make sure that they follow this principle. Their true commitment to their consumer to their consumer is a reason that company has developed so drastically not only, is an achievement in itself & shows how much the consumer love Nestle products. Thus no matter which country its operates in it is committed to strengthening local communities. At Nestlé’s Pakistan they are whole heartedly committed to meet their obligation to Pakistan society and be a good corporate citizen of the country. Their strategy is to provide the finest quality, while consultancy reinventing their products to suit consumer need better their extra care of their consumer need its secret of their success.

References: https://www.scribd.com/doc/57841069/Literature-Review (By Yasir Ayaz et al; 2011)

-:---------------------------:-

9

DISCUSSION & FINDINGS COMPANY PROFILE Name

:

Nestle Pakis tan Limited

Type of Industry

:

Food Producer

Incorporated in

:

1979

Listed in Capital Market

:

Karachi & Lahore Stock Exchanges

Ranking in Capital Market

:

Top 25 Listed Companies

Share in Capital Market

:

PKR 390.01 bn

(As of November, 2014)

Total Revenue

:

PKR 96.70 bn

(As of November, 2014)

Net Revenue

:

PKR 7.80 bn

(As of November, 2014)

Number of Employees

:

3.87k (As of November, 2014)

10

KEY PERSONS IN PAKISTAN Mr. Trevor Clayton, Managing Director, MD Office (Country Head of Operations) Syed Yawar Ali, Chairman Mr. Raymond Franke, Head of Finance and Controls, Finance & Control Division Mr. Haseeb Aslam, country business manager water, water division. Mr. Peter Wuetherich, Head of Technical, Technical Division Mr. Salman Nazir, Head of Supply Chain, Supply Chain Division Ms.Uzma Qaiser Butt, Head of Human Resources, Human Resources Division Mr. Zafar Hussain, Head of Sales, Sales Division

Registered & Corporate Offices in Pakistan Corporate Office Annex 304 – Upper Mall, Lahore

Park Lane Tower 72-Tufail Road, Lahore Cantt, Lahore.

Sheikhupura Factory 29th K. M. Lahore - Sheikhupura Road, Sheikhupura.

Kabirwala Factory Kabirwala - Kabirwala Road, District Khanewal

Islamabad Factory (Water) Plot no. 32, Street 3; Sector 1 – 10/3, Islamabad

Karachi Factory (Water) 23-A, North Western Industrial State, Port Qasim Authority, Karachi. CHAIRMAN P.BarbeckLetmathe

11

CEO P.Bulcke

R.Ramsauer

Operations

Finance & Control

CORPORATE STRUCTURE OF NESTLE J.Lopez J.Singh

Zone EUR: EUROPE

L.Freixe

F.Castaner

SBU’s Marketing & Sales

Innovation Technology & R&D

W.Bauer

W.Bauer

Nestle Nutrition

Nestle Waters

Nestle Professional

R.T.Laube

J.J.Harris

M.Caira

Zone AOA: ASIA/AFRICA

F.Van Dijk

12

Zone AMS: Americas

L.Cantarell

VISION / MISSION Settle Pakistan Limited is a Pakistan-based organization occupied with assembling, handling and offer of sustenance items, for example, dairy, candy parlor, culinary, refreshments, newborn child nourishment and drinking water. The Company works in two sections: Milk and sustenance items, which incorporate drain based items and oats; and Beverages, which include squeezes and water. Settle Pakistan works the greatest drain gathering operation in Pakistan. The Company's items are exchanged under brands, for example, NESTLE MILKPAK, NESVITA, NIDO, EVERYDAY, MILKPAK CREAM, NESTLE RAITA and NESTLE ACTIPLUS. Settle Pakistan gathers drain from an expected 190,000 ranchers spread more than 145,000 square kilometers in the area of Punjab and Sindh. Settle Pakistan is the Food and Beverages Company in Pakistan with key concentrate on Nutrition, Health and Wellness and coming to the remotest of areas all through Pakistan to serve the customers.

"Nestlé is the largest food company in the world. But, more important to them is to be the world's leading food company" Nestlé, trust that exploration can enable them to improve nourishment with the goal that individuals carry on with a superior life. The world's driving nourishment, wellbeing and Wellness Company. "Great Food, Good Life" is the guarantee we focus on ordinary, wherever – to improve lives, all through life, with great sustenance and refreshments. Great Food is the essential wellspring of Good Health all through life. They endeavor to bring buyers nourishments that are protected, of high caliber and give ideal sustenance to address physiological issues. Notwithstanding Nutrition, Health and Wellness, Nestlé items bring purchasers the imperative elements of taste and joy.

"Nestlé 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"

13

GOALS OF NESTLE The goals of Nestle Company are as follows: Promoting goals are perfect with the general corporate targets of settle. Organization's goal is to be the world's biggest and best marked sustenance producer while guaranteeing that settle name is synonymous with the results of the most elevated quality. Good

Food, Good Life, the key to health, nutrition and wellness.

More than 140 years of experience and skill, encourages them in conveying the best items to tastes, needs, virtue and quality, accommodation and nourishment and in moderate costs. The organization has confidence in persistent R and D through steady remodel and advancement to grow new items and enhance existing ones to serve their a large number of purchasers. Lead a dynamic, spurred and proficient workforce – glad for our legacy and positive about what's to come. Meet the nourishment needs of shoppers of any age – from earliest stages to seniority, from sustenance to delight, through an inventive arrangement of marked nourishment and refreshment results of the most noteworthy quality. Convey investor esteem through gainful long haul development, while proceeding to play a critical and dependable part in the social, monetary, and natural segments of Pakistan.

PHILOSOPHY OF NESTLE Nestlé‘s philosophy is summed up in four words:

Good Food, Good Life In their journey to end up plainly the world's driving wellbeing, nourishment and health organization, they do...