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IQRA UNIVERISTY

PROJECT REPORT

COURSE; DISTRIBUTION & CHANNEL MANAGEMENT

ON

BY

MUNEEB BASHARAT ID: 11026

PRESENTED TO
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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 “tauseef iqbal” 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.
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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 given references from
which sources I got this information and be able to complete the project.
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Table Of Contents
S.No. Topic Name Page No.
1. Organization’s Introduction 04 - 05

2. Vision, Mission and Core Values 06 - 07

3. Competitive Advantage 07-08

4. Competitors 08-09

5. BCG Matrix 09-10

6. Products & Services 10-13

7. Marketing Mix 14-16

8. Suggestion for improvement 16-16

9. References 17-17
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Introduction
Nestle Company founded in 1866 by Henri Nestle in Vevey, Switzerland, 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.
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Core Values:
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
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
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 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 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.
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Competitors:

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 Aquafina

 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.
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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.
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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.

Products & Services:

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.
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 Nestle NIDO

 Nestle NESVITA

 Nestle MILK PAK

 Nestle EVERYDAY

 UHT Cream

 Nestle MILK PAK CREAM

 Nestle Milkmaid Creations Dessert Cream.

\
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 Infant Foods:

 CERELAC

 Yoghurt:

 NESTLE ACTIPLUS

 NESTLE RAITA

 NESTLE YOGURT

 NESTLE RIWAYATI MAZAA

 Juices:

 NESTLE FRUITA VITALS

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 Ready to cook noodles:

 MAGGI NOODLES

 Cereals:
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 Water

Nestle Pure Life

Services:

 Feed improvement
 Livestock breeding and health
 Equipment provision
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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)

 Nestle Everyday (Powdered Milk)

 Nestle Launched Firstl 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.
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 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 and Kabianwala.
 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, MC-DONALDS and
PEARLCONTINENTAL Pakistan.
PRICE
•

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. •
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.
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 N e s t l e h a s i t s o w n w a r e h o u s e s f o r t h e

s t o r a g e o f p r o d u c t s a s w e l l a s i t h a s a l s o h i r e d s o m e warehouses.
•

Transportation modes of the product

Usually Nestlé’s mode of transportation is road.
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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.

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.