IFE & CPM of Nestl Pakistan

Group Name: The Incredibles Group Series: H

Group Members: Muhammad Ahsan Arslan Maqsood Hussain Ahmad Sameer Ashfaq L1F10BBAM2129 L1F10BBAM0110 L1F10BBAM0111 L1F10BBAM2121

Section: A Assignment No: 3 Submission Date: October 28, 2013

IFE (INTERNAL FACTOR EVALUATION) MATRIX

Key Internal Factors Strengths

Total Sales grew by 22% to PKR 79Billion Export Sales grew by 15% to PKR 6Billion Net Profits increased by 25.6% Reliable Distribution Network around the country Strong Financial Background Strong supply chain network Workforce composed of one of the Best People Working under an Established International Brand Image Easy access to International Markets for Exports Manufacturer of Quality Products Holding Major Market Share in FMCG Industry of Pakistan Low Cost Operators Socially Responsible Company

Weights Rating

Weighted Score

0.02 0.02 0.04 0.05 0.06 0.05 0.05 0.04 0.05 0.05 0.08 0.08 0.03

4 4 4 3 4 4 3 3 4 4 4 3 3

0.08 0.08 0.16 0.15 0.24 0.20 0.15 0.12 0.20 0.20 0.32 0.24 0.09

Weaknesses
Revenue from Confectionaries decreased by 14% Sales of Dairy Products decreased by 5% Target Market focused on High Income Groups Only Weak Marketing Campaign and Advertisements Low Credit Sales and Profit Margin to Retailers Cant launch expensive brand due to low income groups 0.06 0.11 0.06 0.10 0.03 0.02 3 2 1 2 2 1 0.18 0.22 0.06 0.20 0.06 0.02

Total

1.00

2.97

According to the above given IFE Score of 2.97, It shows that Nestl Pakistan is doing really well in managing its strength and weaknesses. It is a Good Score.

CPM (COMPETITIVE PROFILE MATRIX)

Critical Success Factors Market Share Financial Position Global Expansion Product Quality Consumer Loyalty Management Team Marketing & Advertisement Inventory System Costing & Price Sales & Distribution Network Production Capacity Brand Name R&D Customer service Organization Structure Total

Weights 0.07 0.07 0.04 0.10 0.06 0.08 0.10 0.07 0.08 0.09 0.07 0.07 0.05 0.03 0.02 1.00

Nestl Pakistan Rating W.S. 4 4 4 4 4 3 2 3 3 3 3 4 4 2 3 0.28 0.28 0.16 0.40 0.24 0.24 0.20 0.21 0.24 0.27 0.21 0.28 0.20 0.06 0.06 3.33

Engro Foods Rating 3 3 2 3 3 3 3 3 3 3 3 3 3 3 3 W.S. 0.21 0.21 0.08 0.30 0.18 0.24 0.30 0.21 0.24 0.27 0.21 0.21 0.15 0.09 0.06 2.96

Haleeb Foods Rating 2 2 1 2 1 1 1 2 2 2 2 2 2 2 2 W.S. 0.14 0.14 0.04 0.20 0.06 0.08 0.10 0.14 0.16 0.18 0.14 0.14 0.10 0.06 0.04 1.72

Shakarganj Foods Rating W.S. 1 2 1 2 1 1 1 2 2 1 2 1 1 1 2 0.07 0.14 0.04 0.20 0.06 0.08 0.10 0.14 0.16 0.09 0.14 0.07 0.05 0.03 0.04 1.41

From the above CPM Scores we can deduce that Nestl Pakistan is way ahead of all its competitors. We can say that only Engro Foods is in a position to compete Nestl Pakistan.