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Group MembersGroup MembersAmmarah Haseeb (12670)Narjis Batool (12621)Tahir Habib (12831)
PresentsPresents
Abdul Majid (Zeeshan Ahmed (12576)Mirza Ahmar Abbas (12932)
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W elcome to Nestl
Marketing Plan
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Introducing Nestl
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W orld Leading Swiss FMCG Company.
Founded by Henri Nestle in 1867.
Excellence in product safety, quality and
value
Vide range of products e.g. dairy products,
beverages, water, infant dietetic and
confectionary.
449 Factories, 83 countries, present inalmost all the continents.
Introduced in Pakistan in 1988, by getting
share in Milkpak limited.
Nestl at a Glance
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Nestl Factories in Pakistan
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Henri Nestl endowed his company with the symbol derived fromhis name.
Nest with a mother bird protecting her young, became theCompany's logo and a symbol of the Company's care and attitudeto life-long nutrition.
The Nestl nest represents the nourishment, security and sense of family that are so essential to life.
The first product made by Henri Nestl, a food for babies whowere unable to breastfeed.
Nestl Year to Year
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Nestle Pakistan subscribes fully to this global vision. In addition to that, NestlePakistan also envisions to:
Lead a dynamic motivated and professional workforce that is proud of its heritage and bullishabout the future.
Meet the nutritional needs of all age groups through a diversified product range that contains aninnovative portfolio branded food and beverages of the highest quality.
Maintain long-term growth and deliver shareholder value.
Establishing responsible communication with the consumer which in turn can provide us abetter look into what changes need to be made to our products.
Strengthen the position as the best career destination for talented and motivated individuals.
Empowering a system of self-management.
Nestls global vision is to be the leading health, wellness, andNutrition Company of the world.
Nestls VISION
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"Nestl is the largest food company in the world. But, more important to them is to be the world's
leading food company.
Nestls MISSION STATEMENT
" These four words capture the essence and meaning: of what we do, and of what we offer to consumers everywhere.
They express a philosophy of what we believe in.They also articulate a vision of where we are going. "
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Nestl in Figures
W orldwide Sales: CHF 108,055 mio
EB IT: CHF 15,699 mio
Net Profit: CHF 10,428 mio
Factories: 449
Employees: Around 280,000
Organic Growth: 19.9 %
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The World's Leading Food Company
The USD >10 billion Food Companies in FY 2004
0
10'000
20'000
30'000
40'000
50'000
60'000
70'000
N estl Kraft Foods PepsiCo Unilever Coca-Cola Mars Danone ConAgra CadburySchweppes
GeneralMills
Sara Lee
F o o d S a e s
n
o U S D
On y Food nc . petfood & Beverages exc . a coho
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Adaptation
W e have a global food strategy
which is adapted locally to suit
local cuisine based on consumer insight
China Totole Granulated Chicken Bouillon
Nigeria Maggi Chicken Cube
Poland W iniary Rosot Krolewski
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To manufacture and market the Company's products in such a way as
to create value that can be sustained over the long term for
shareholders, employees, consumers, and business partners.
Nestl recognizes that its consumers have a sincere and legitimate
interest in the behavior, beliefs, and actions of the Company behind
brands in which they place their trust and that without its consumers
the Company would not exist.
Nestl continues to maintain its commitment to follow and respect all
applicable local laws in each of its markets.
Nestl Marketing Goals &Objectives
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Key Ingredients
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Our People
People - our source of energy
Around 280,000 people make
up the Nestl family
Continuous training
and improvement of
professional skills
Respect and cultural diversity
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Nestl R&D
An interactive Network covering four Continents
8 Research and evelopmentCenters: Amiens (FR), Marysville,
Solon ( S), Shanghai (CN),Singapore(SG), Sderot ( IL), Tours (FR),Casa Buitoni ( I)
8 Product Technology Centers(PTCs): Konolfingen, Orbe (CH),Beauvais, Lisieux,Nestl W aters (FR), St Louis ( S),
York (GB), Singen ( )
Nestl Research Center (NRC),Lausanne (CH)
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The Nestl Management andLeadership Principles
People and product rather
than systems oriented
Committed to long-termshareholder value
As decentralized as possible
Continuous improvement
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Nestl Organisation Chart
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Hierarchy details of Hierarchy details of NestlPakistan
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Inside Nestl
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Nestls Global Presence
Americas 33.8%
Europe 30.3%
AOA 17.2%
Water 9.7%
Other 9.0%
Percentage of total sales
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Sales by Product Group
6.5%Pharmaceuticals
11.9%
ChocolateConfectioneryBiscuits
18.3%
Cooking AidsPrepared ishes
Milk ProductsNutritionIce Cream
25.5%
Beverages
26.2%
PetCare
11.6%
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Nestl's Four Strategic Pillarsand Organic Growth
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GOO FOO GOO FOO , GOO L IFE
Sustenance Enjoyment Health/ Nutrition Psychological Contentment
Good Food Health & W ellness W ellbeing
Feeling GoodTaking Control
EquilibriumBody & Mind
PerceivedNutritional
value+
Taste/PleasureVariety/BalanceSafety/Quality
For all
+
Evolution of need states in food
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Corporate W ellness nitCreation of Corporate Wellness Unit todrive the Nutrition Health and Wellnessorientation across the Company
Nestl NutritionStrengthen our leadership position in thecore nutrition business
People
Products 60/40+
Brands
&
Comm.
Science
Nestl: evolving into nutrition,health & wellness company
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Name of chairmanCorporate CommunicationsCorporate Communications
Committed to responsible
use of gene technology
For transparent consumer
information
Respecting consumer
preferences
Nestl Position
Biotechnology
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During the first months, the mothers milk will
always be the most natural nutriment, and every
mother able to do so, should herself suckle her children.
Henri Nestl, 1869
One Hundred Years Before the W HO CodeHenri Nestl supported breast feeding
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Nestl World of Products
Corporate Communications
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Nestl Brands & Products features
Quality and nutritional value are the
essential ingredients in all Nestl brands.
Factors behind Nestle Brands successare multifarious, quality, improved
technology, innovation which have
created brand loyalty amongst its
customers.
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Baby Foods
Breakfast Cereals
Beverages
Bottled W ater
Chocolate & Confectioneryairy Products
Ice Cream
Food services
Prepared FoodsPet care
Pharmaceuticals
Cosmetics
Nestl Product Lines
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BABY FOO S
LactogenNestogen
Cerelac
NeslacCalcium Plus
Nestle NAN etc..
History Recalls:
Nestl established in 1867 in Switzerland &its first product was Lactogen formula for
infants by the name Farine Lacte
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BREAKFAST CEREALS
ChocapicShreddies
Cheerios
Cookie CrispLucky Charms,
Cinnamon Toast etc..
History Recalls:
Nestl became Cereal Partners Worldwide in 1990.
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Beverages
Soluble Coffee:
Nescaf, Nespresso, Coffee mate
Chocolate Milk BeveragesNesquik, Nescau
Ready-to-drink
Nestea, Juicy juice, Nestle Fruit JuicesBeverage Partners W orldwide
Joint venture with Coca-Cola
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Bottled Water
Nestl Pure Life
S.Pellegrino
Perrier
Contrex
Vittel
Arrowhead
Poland Spring
eer Park,
Ice Mountain etc ..
History Recalls:
Nestl shared Hands with Vittel in 1969 with equity
interest.
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Chocolates & Confectionery
Countlines:K itK at, Lion, Smarties,
Butterfinger, Galak/milky Bar
Tablets:
Nestle Crunch, Nestl C lassic,
Aero, Polo
Presentation Boxes:
After Eight, Quality Street,
Baci
Biscuits:So Luiz, La Rosa, Mc K ay
History Recalls:
Nestl exercised Merger with Peter, Cailler, Kohler
Chocolates Suisses S.A. in 1929.
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Dairy Products
Nido
Milk Pack
Every Day
Nesvita MilkNespray
Carnation
MiloNestle Yogurt
History Recalls:
Nestl exercised Merger with Anglo-Swiss
Condensed Milk Company in 1905
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Ice Cream
Mvenpick
reyer's/Edy's
rumstick/Extrme
Maxibon/Tandem
Mega
Sin Parar/Sem
Parar/Non Stop
Antica Gelateria del CorsoHistory Recalls:
Nestl exercised Acquisition of Mvenpick,Powwow and Dreyer's in 2003&Valio in 2004 (for Ice cream activities)
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Nestl Food Services
Food Services and
professional products
Chef
Hotels and restaurants
Vending machines
Fast food chains
History Recalls:
Nestl exercised Acquisition of Schller and Chef America in 2002.
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Frozen:Stouffers, Buitoni, cold meat products, dough,
pasta, pizzas, sauces, snacks etc.
Soups, Bouillons, Sauces:
Maggi
Italian Cuisine:Buitoni, Lean cuisine, Hot Pockets
Prepared Dishes and Cooking Aids
History Recalls:
Nestl exercised:
1. Merger with Alimentana S.A. (Maggi) in 1947.
2. Acquisition of Buitoni-Perugina in 1988.
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PetCare
Cats:
Pro Plan, Purina ONE,
Fancy Feast, Friskies,
Cat Chow, Felix
Dogs:
Pro Plan, Purina ONE,
Dog Chow, Mighty Dog,
Alpo, Winalot
History Recalls:Nestl exercised acquisition of :
1. San Pellegrino and Spillers Pet foodsin 1998
2. Ralston Purina in 2001.
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Pharmaceutical Products
Alcon Laboratories:
Ophthalmic drugs,
lens-care solutions &
optical surgical instruments
Galderma:
Pharmaceutical and cosmetic
joint ventures with Galderma
History Recalls:
Nestl exercised:
1. Acquisition of Alcon in 1977.
2.Joint ventures with Galderma in 1981.
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Cosmetic
LOral
The world leader in
cosmetics
Innov - Joint venture with
L'Oral on Equity interest
basis in 1974
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Nestls Products Lines in Pakistan
NESTLE PROFESS IONAL
W ATERS
CH ILLE D D AIRY
FOO D
INFANT FORM LA
N TR ITION
BEVERAGES
AMB IENT D AIRY
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Nestl Products Mix in Pakistan
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Nestl Products Mix in Pakistan
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Nestl Products Mix in Pakistan
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Nestl Products Pricing Stretegies
All the prices are totally based on quality, services and
organization makes sure that prices should be affordable by all
the customers.
Customers trust and happiness is prime objective.Nestle always strive to give superior product at affordable rates.
Nestle product pricing is comparatively high against its
competitors but it delivers maximum quality and value to their
customers.
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Nestl Products Pricing Stretegies
COST BASED PRICING STRETEGY
Nestle use the simple formula for the price that is Cost +Profit.
Nestle responds to commodity price increases, it also
responds to fluctuations in the other direction and may lower
prices again accordingly.
The effect of commodity prices varies from country to country
and from product to product, so finished product prices are
not decided centrally but by market.Nestle expect their Raw material cost pressures to abate
somewhat in the course of the year, and foresee price
increases to trend lower in the second half of the year."
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Nestl Products Pricing Stretegies
WITHDRAWING S K Us
Where it makes no sense to increase finished product prices
to cover its own costs, the company has simply withdrawn
stock-keeping-units (S K Us) from sale.
These steps taken in those countries where Raw material was
not produced locally and must be imported.
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Nestl Products Pricing Stretegies
PRODUCT RE-FORMULATION TO MAINTAIN PRICES
Nestle has worked to reformulate some of its products,
replacing some commodities with other, cheaper ones.
The choice of alternative raw materials must ensure same
quality and nutritional considerations and not just price.
If reformulation not possible to maintain the same standards,
the company will either keep the product AS IT IS and
increase the price, or drop the SK
U.Where a product has been reformulated, it will be changed
back when the commodity cost has dropped only if there are
clear advantages to doing that.
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Supply Chain & D istribution Channels
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Marketing Channels
Market D istribution andMarket D istribution andChannels Strategy:Channels Strategy:
Nestl Pakistan's supply chain and distribution makes sure that
Nestl products are:
accessible, no matter where consumers are in Pakistan.
Nestle aims to put together processes from the farm to
markets.
Make sure products are distributed to the consumers at the
correct time, the right cost and in the accurate quantities.
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HOD Svc. Network
Islamabad
LahoreFaisalabad
North
SouthK arachi
Hyderabad
Sargodha
Abottabad
Muzafarabad
Jehlum
Wah
Sialkot
OkaraK asur
Peshawar
Sahiwal
Gujrat
Jhang
Gujranwala
Multan
Marketing Channels
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Marketing Channels
To accomplish their tasks, the company choosesboth marketing channel methods
1.Conventional:In conventional channel, Nestle Products are distributedamong the wholesalers of Pakistan and from wholesalers;
the products are distributed to retailers and from retailers, theproducts reaches to ultimate consumers.
Nestle Wholesalers Retailers Ultimate Consumers
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Marketing Channels
2. Vertical:In Nestle, Products are also delivered directly to the consumersthrow vertical distribution channel. In this channel, the cost canbe minimized.
Nestle Products
Wholesalers
Retailers
Ultimate
Consumers
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Promotion
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Nestl Products PromotionNestl Products Promotion
Nestle knows the specific segment of themarket, its business is attempting toserve.
It determines the sales of its productsagainst those of its competitors with thehelp of research.
Nestle adapt both ATL and BTLstrategies for promoting their brands.
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Nestl Products Promotion
Company is making effective effort inadvertising its product through Television,News papers and Billboards
ADVERTISING:
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Nestl Products Promotion
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Nestl Products Promotion
ADVERTISING:
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Nestl Products Promotion
ADVERTISING:
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Nestl Products Promotion
PERSONAL SELLING:The company hires the large number of employees whose job is to promote theproduct in area where it can have possible
number of buyers.
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Nestl Products Promotion
SALES PROMOTION:Free samples are supplied to targetconsumers to gain their approval of satisfaction.
Consumers educational programs andentertainment events are held to increasethe awareness and encouraging the use of products
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Nestl Products Promotion
SALES PROMOTION:
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TAXES AN D LEGAL OBL IGAT IONS
Tax, finance and accounting department is responsible
for all tax reports and payments.
Company has its own multiple distribution channels which
enables company to supply any critical items.
Before any purchases, comparison market statement ismade and according to the prices in that statement
purchases are made.
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S W OT ANALYS IS
STRENGHTS:
Value added productsBrand nameSix brands having 70% group salesR&D departmentUnique features and technologies40 & 60% test result criteria
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S W OT ANALYS IS
W eakness:Less consumer research in few areas.
Opportunity:
Market expansion by using bio-technology.
Threats:
Baby milk actionNew and indirect competitorsProduct acceptance