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FFAAWWAADD UURR RRAAHHMMAANN

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EEXXEECCUUTTIIVVEE SSUUMMMMAARRYY::

Nestlé with headquarters in Vevey, Switzerland was founded in

1866 by Henri Nestlé and is today the World’s biggest food and

Beverage Company. Sales at the end of 2007 were 91 billion, with a

net profit of 8 billion. They employee around 250,000 people and

have factories or operations in almost every Country in the world.

BBaacckkggrroouunndd ooff tthhee ccoommppaannyy::

Nestlé Company had started off from a single man's idea, and

developed into a giant corporation. In 1866 Henri Nestlé, a

pharmacist, developed a milk food formula for infants who were

unable to tolerate their mother milk (Nestle.com). His product

became a success, and it created a demand throughout Europe. As

Nestlé’s popularity grew more businesses wanted to merge and

become partners with Henri Nestlé's business. From 1866 to 1947

the Nestlé Company had gone through several name changes. In

1905, Anglo-Swiss Condensed Milk Co. and Farine Lactee Henri

Nestlé merged, and the company’s name became Nestlé & Anglo-

Swiss Condensed Milk Co. Then in 1929, Peter-Cailler-Kohler

Chocolates Suisse’s S.A. merged with the company. The name was

then changed to Nestlé & Anglo-Swiss Holding Co. Ltd, on

November 27, 1936. In December 1947, Co. acquired all the shares

capital of the Alimentana S.A. Company in exchange for fifteen

Nestlé shares and fifteen Unilac shares for each of Alimentana S.A.

share, so this point the name was at Nestlé Alimentana S.A. And

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then finally, the last name change that the company would endure

was in 1977, where it adopted the name Nestlé SA (Mergent Online).

Along the way Nestlé’s company remain successful, which allowed

them expand to new region and territories throughout the world,

making them the world’s biggest food and beverage company.

Nestlé’s headquarters are located in Vevey, Switzerland, but the

Nestlé Company has factories or operation in almost every country

in the world. In addition, to the increase in the size of the Nestlé

Company; Nestlé also has increased the variety in the different

products they offer. In Nestlé’s business strategy they encourage

product growth through innovation and renovation (Nestle.com).

This strategy has allowed Nestlé to develop many different products

in the various fields: baby foods, dairy products, breakfast cereals,

ice creams, chocolates and confectionery, prepared foods,

beverages, food services, bottled water, and pet care.

IInnttrroodduuccttiioonn ooff tthhee CCoommppaannyy::

Nestlé is the world's leading food company. Since it was set up by

Henri Nestlé to provide an infant food product, it has been

associated with providing high quality, customer and consumer

focused products. In recent years it has focused on becoming a

nutrition, health and wellness company. Wellness is about

supporting people to live more healthy lives e.g. through the

development of probity yoghurts that help maintain the balance of

the digestive system. The company is a world leader in research and

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development, and Nestlé's scientists work in all areas to create

healthier and more nutritious foods.

BBrriieeff HHiissttoorryy::

In 1866 Henri Nestlé, a pharmacist, developed a food for babies who

were unable to breastfeed. His first Success was a premature infant

who could not tolerate his mother's milk or any of the usual

substitutes. People quickly recognized the value of the new product,

after Nestlé's new formula saved the child's life, and soon, Farine

Lactée Henri Nestlé was being sold in much of Europe. In 1905

Nestlé merged with the Anglo-Swiss Condensed Milk Company. By

the early 1900s, the Company was operating factories in the United

States, Britain, Germany and Spain. World War I created new

demand for dairy products in the form of government contracts. By

the end of the war, Nestlé's production had more than doubled.

After the war Government contracts dried up and consumers

switched back to fresh milk. However, Nestlé’s management

responded by streamlining operations and reducing debt. The

1920s saw Nestlé's first expansion into new products, with

chocolate the Company's second most important activity. Nestle felt

the effects of World War II immediately. Profits dropped from $20

million in 1938 to $6 million in 1939. Factories were established in

developing countries, particularly Latin America. Ironically, the war

Helped with the introduction of the Company's newest product,

Nescafe, which was a staple drink of the US military. Nestlé's

production and sales rose in the wartime economy. The end of

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World War II was the beginning of a dynamic phase for Nestlé.

Growth accelerated and Companies were acquired.

Nestlé's growth in the developing world partially offset a slowdown

in the Company's traditional markets. Nestlé made its second

venture outside the food industry by acquiring Alcon Laboratories

Inc. Nestlé divested a number of businesses1980 / 1984. In 1984,

Nestlé's improved bottom line allowed the Company to launch a new

round of acquisitions, the most important being American food

giant Carnation. The first half of the 1990s proved to be favorable

for Nestlé: trade barriers crumbled and world markets developed

into more or less integrated trading areas. Since 1996 there have

been acquisitions including San Pellegrino (1997), Spillers Pet foods

(1998) and Ralston Purina (2002). There were two major

Acquisitions in North America, both in 2002: in July, Nestlé merged

its U.S. ice cream business into Dreyer's, and in August, a USD

2.6bn acquisition was announced of Chef America, Inc.

SSiiggnniiffiiccaanntt bbrraanndd::

Nestle ice-cream which means a refreshing treat which every one

loves. Nestle started their ice- cream product in 1991 in United

States. The products gain a wide acceptance with kids as well as

grownups.

The project is about induction of Nestle ice-cream in Pakistan.

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IIddeennttiiffiiccaattiioonn ooff OOppppoorrttuunniittyy::

SSWWOOTT AAnnaallyyssiiss..

STRENGTH

Nestle is the world's largest food and beverage company in terms of

sales. Due do strong brand name our product will gain a wide

consumer acceptance from all over the Pakistan. The biggest

strength would be the strong brand name the risk in investing

would be reasonable very low. And the pledge of getting a viable

business, one that has been “worked” many times before. We will

set a complete transparent manufacturing system for customer

satisfaction in terms of hygiene. We will strengthen our product by

broad distribution network by increasing the capacity for innovation

which will lead to an improvement in sale growth. We will be

organizing a team which will inspect and observe the accumulation

(stock) on daily bases to prevent any damages occurring and also in

order to keep the inventory fresh. We will make sure that we are not

having surprise shortage, weather it is winter or summer no matter

what circumstances are. Further strength would be.

Strengths

Skilled labor.

Educated staff.

Large number of offerings.

Pre purchase virtual display.

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Arrangement of events.

Good background of the company.

Easy to approach outlets.

Physical evidence

WWeeaakknneessss::

The main weakness of our product is the lack of an established

good standing. Our competitors have been around for decades and

therefore have a loyal base. The second biggest weakness would be

the lack of capital, establishing such an enormous and gigantic

plant there will be a need of acquiring financial support in terms of

loans from the bank. Spending millions in a strong brand is no

guarantee to wealth. It may the safest way to get into the business,

but it is not necessarily the cheapest. Further weakness would be.

Weaknesses

Small target market.

Lack of awareness among the target market.

Dependency on others (govt. & sponsors) for the arrangement

of events.

OOppppoorrttuunniittiieess::

The biggest opportunity would be considered geographically.

Pakistan is situated in an area where we have summers most of the

time. People love as well as enjoy eating ice-cream in this season.

Due to strong brand name in the market our product has a great

potential of earning profits. To make the product successful we will

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be utilizing the highest degree of technology in calculating

customers’ satisfaction as well as their feed back. Gaining initial

success the next step would be opening a par lour where people can

enjoy all the flavors under one roof. Further opportunities would be.

Opportunities:

Increasing interest of people

Few and weak competitors

TThhrreeaattss::

The biggest threat to are product is the fierce competition in the

local market. Walls by (Unilever) are one of the biggest names in ice

cream which not only distribute their products nation wide but also

had a total control on the local market. The second thread that our

product will face would be Shezan, Gourmet and many others small

bakeries which have their influence on the market.

Threats

Major player may enter target market

Legal and ethical issues.

Market segment growth could attract new entrants.

Economic slow down can reduce demand.

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BBCCGG MMAATTRRIIXX

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BCG MATRIX:

SSTTAARRSS

The products which have high market share and high anticipated

growth rate would come under this. Nestlé two major products lie

under the star products. Otherwise nestle have hundreds of

products and brands .But we will discuss here only its major

products nestle milk pack and second is nestle water. These two

products will lies in the category of star products.

QQUUEESSTTIIOONN MMAARRKKSS

The product which have high anticipated growth rate but low

market share would be considered as question marks. The product

which we are going to launch first time in Pakistan (NESTLE-ICE-

CREAM) would come under the question marks.

CCAASSHH CCOOWWSS

The products which have low anticipated growth rate and high

market share would be considered as cash cows .The product which

lies under this is nestle Milo

DDOOGGSS

The product which have low anticipated growth rate and low market

share would be considered as dog product of the company’s the

product which comes under this is nestle corn flakes.

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CCoorree DDiissttiinnccttiivvee CCoommppeetteennccyy ooff tthhee CCoommppaannyy::

To pose our product against the competitors we will be using

differentiation strategy which will not only differentiate us from

others but also give an edge over others. Our core products will be

very beneficial especially in terms quality, health, and hygiene and

most important consumer satisfaction. Our augmented products

will include consumer satisfaction as we have discussed, warranty

to retailers in terms of expire, delivery and after sales services.

PPrroodduucctt mmaarrkkeett eexxppaannssiioonn ggrriidd::

We will be following the same strategy for our expansion as does

nestle ice-cream do and they would be,

Low cost operator

Low cost operator in terms of using minimum initial investment - to

not to overload the business with expensive assets.

Assets utilization- ensuring full use of existing assets at a regional

level before acquiring additional ones.

Ingredients optimism – selection of appropriate ingredients, which

gives desired consumer perception at lower cost.

Innovation / Renovation

Using strong innovation system which will able to provide each year

a new product range in a timely manner, while making best use of

existing assets.

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Product availability (“with in arms reach”)

Maximum availability at the right cost at all channels.

Communication

By making nestle ice-cream the most visible brand in the street,

placing a priority on visibility. We will also be ensuring that we

reinforce the availability and attractively of our brand in locations of

high traffic flow.

PPrroodduucctt lliiffee ccyyccllee::

The diagram shows that the industry is on the growth phase while NESTLE is on

introductory phase.

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PPoorrtteerr’’ss FFiivvee FFoorrcceess::

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PORTER FIVE FORCES

TTHHRREEAATTSS OOFF NNEEWW EENNTTRRAANNTTSS::

In Pakistan the competition in the ice cream business is very small.

Currently 2-3 companies are doing the business of ice cream out of

which one brand is international and other two brands are local’s

from this it can be concluded that there would be a lot of chances of

other international famous brands of ice cream start their

businesses in Pakistan.

SSUUBBSSTTIITTUUTTEESS::

The major substitutes of nestle ice cream would be walls ice

cream,Hico ice cream and eat more ice cream.

BBAARRGGAANNIINNGG PPOOWWEERR OOFF SSUUPPPPLLIIEERR::

As nestle came in Pakistan since 1988 and they are the market

leaders in the dairy products. As nestle Pakistan is already in the

business of dairy so our bargaining power of supplier would be very

moderate.

BBAARRGGAAIINNIINNGG PPOOWWEERR OOFF CCUUSSTTOOMMEERR::

Bargaining power of customer would be very low because the price

of our ice-cream would be fixed.

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SSttrraatteeggyy ffoorr llaauunncchhiinngg tthhee pprroodduucctt::

Goals & objectives:

Creating awareness about our product to at least 50% of the

target market within three months of launch.

This objective will be achieved through intense promotional

activities, developed to get to the target market in the best possible

manner.

Capturing 60 % of target market within 1 year.

Our promotional activities will develop interest for people thus

compelling them to approach us. We will make good relations with

our customers so they create good word of mouth for us and

approach us again and refer others.

Launching the product in summers.

We will be launching the product in summers to capture most of

the target consumers and as well as market share.

Opening different outlets.

We will be opening different outlets initially in major two cities and

after gaining primarily success we will be available in all big and

small cities of Pakistan.

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MMaarrkkeettiinngg ssttrraatteeggyy::

Our product will include features that contains the

combination of both health and hygeine keeping in mind the

individuals requirments in terms of taste. However the

marketing will be done considering the concept of mass

personage.

Our product will be tailored to individual needs (desired taste)

but promotion will attract all of them collectively. Further

more we will be following pull strategy and approach our end

users ourselves with the help of various promotional activities.

In our case no intermediary (whole sellers) is involved. Our

distribution channel will be as

follow.

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AACCTTIIOONN PPRROOGGRRAAMMSS::

We will be acting for our operations by the following chart. For the

implementation of the plan we have divided the tasks to the

respective staff that will ensure the implementation

RReessppoonnssiibbiilliittiieess ooff tthhee TTeeaamm::

Marketing Head will be responsible to coordinate all the marketing

activities happening. He gets the sales, finance and process control

activities done through the respective subordinates however he is

directly involved in the designing and implementation of the public

relation and advertisement activities. He also monitors the budget

details given to him by the financial officer and ensures its proper

allocation.

Sales management in this the management is responsible for the

activities related to sales such as discounts and other sale

promotions.

The financial officer’s keeps record of the marketing budget and

the distribution of budget allocated for various areas by the head.

The process control officers make sure that all the process

involved in the service is performed efficiently. He coordinates the

activities of the mechanics and the computer designers.

Further there are staff for various areas who are directly involved

in the accomplishment of the tasks provided to them by their

respective heads

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AAccttiioonn PPllaann TTiimmiinnggss::

All the Task force will work keeping in view the following major

activities.

The service is to be launched on 1st march 2008.

The advertisement through cable and our magazine will be

started one week before the launch.

The first issue of the magazine will be distributed along with the

English news papers on Sunday 24thof February 2008

. MMaarrkkeett sseeggmmeennttaattiioonn::

We have divided our market into geographic, demographic,

psychographic and behavioral segments. These segments will help

us understand our market better.

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Geographic Segmentation:

Enjoying ice-cream is popular mostly all over the Pakistan but

keeping in mind the market conditions and secondly to reduce the

initial (expenses not to over load the business). We will be

launching our product initially at Lahore and Karachi. So

geographically we have divided the market in to Lahore and

Karachi.

Demographic segmentation:

The demographic segments for our product comprises of following

variables:

Age:

Below 18, 18-30, 30 +

Gender:

Male, female

Psychographic Segmentation:

Lower class, Middle class, Upper class.

Behavioral Segmentation:

Firstly this segment includes people who are interested and like

enjoying ice-cream.

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Secondly it includes people who are willing to buy but not

finding any other in the region up to the level they desire with

respect to quality, hygiene and taste.

And lastly there are people who are not interested in the

concept at all.

TTaarrggeett mmaarrkkeett::

Knowing the fact that we can not be every thing for everyone we will

be targeting only those segments that can provide best possible

returns so that we may reach are goals effectively and efficiently.

Our target market collectively consist of males as well as females in

Lahore and Karachi of age group less then 18-30 belonging to

middles class, not finding any other provider in terms of quality,

hygiene and taste.

PPoossiittiioonniinngg::

We will position our product as a high quality product consumer

focused. Messages like

“Who knows your taste better than us”,

“Nestle ice-cream now at your door step”;

“Add additional flavors’ to your life”

will help us portray our picture clearly and distinctly. We will

position our product against the competitors and gain competitive

advantage through our efficient promotional methods, using

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innovations, and by reaching closer to our target market through

the arrangement of events like BASANT, VALENTINE DAY and etc.

In short consumers will view us as a product providing highly

quality, in terms of taste, customer focused and, at the same time

reasonably priced as compared to others.

MMaarrkkeettiinngg mmiixx::

Product.

Price.

Placement.

Promotion.

Product.

Our product is high in providing quality, taste and hygiene. We are

the only one in local market providing flavors as no one ever does in

Pakistan where consumers may choose from a wide range of

flavors’. A large variety of modes manufactured by a single brand

NESTLE.

Our products will include:

A wide range of flavors, keeping in mind the taste of

individuals.

Modifying our products by new innovations every year.

Giving best taste at best affordable prices.

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Selection of appropriate ingredients, which gives desired

consumer perception.

AAccttuuaall PPrroodduucctt::

Our actual product consists of following attributes:

Brand name:

The brand name NESTLE has a direct relation with food and

beverages as the name comes in mind the person things of nothing

but a quality products. The brand name is easy to read and

pronounce at the same time stylish and attractive

Features:

Initially our features include services like sending our

representatives to the door steps of interested consumers (target

market), answering their concerns, and telling them what we have

for them.

Quality:

We will assure and provide quality service and make sure that the

inventory we provide are durable, healthy, fresh and long lasting.

Our quality of service will help consumers develop trust in us.

Styling:

Style and catchy designs are the most important aspects of our

product. We will help our consumers feel special and find the

product healthful.

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Variety:

Another feature of our product is variety and flexibility of products

provided. We have the availability of large variety of flavors as

compared to different brands.

Price:

Our pricing is done considering

Our marketing objectives

The economic conditions of our target market

Pricing of our competitors

The nature of our business.

PPLLAACCEE::

We will be placing our product by different channels to hit the

target consumers. Our coverage will be quit flexible for intended

positioning. Assortments regarding our product will be enthusiastic.

Our locations will be positioned in such a manner which will be

accessible either to consumer as well as retailers. As the map shows

we will be placing the main head office at Gulberg near Hussain

Chowk. We will be having a completely separate department which

will make assure that the inventory remains fresh. Our

transportation will be marked by our brand name .And finally our

logistics and equipment will be installed by the professionals of

Motorola to keep track of every thing.

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PPrroommoottiioonn::

The accomplishment of our objectives to create awareness about

our product and to get desired market share will be possible

through our promotional efforts. Our promotional efforts will not

only help attract the existing market but also create interest in new

groups of people specially youngsters. The promotion tactics have

been designed keeping in view the trends of the target market and

the modes which are best suited to reach them.

PPrroommoottiioonnaall MMiixx::

Following tools will be used in our promotion:

Advertising

Public Relations

Sales Promotion

Direct Marketing

Advertisement:

We will advertise using world call cable, distributing magazine

placed in news papers, and as well as on World Wide Web.

On World Call cable we will advertise 20 times a day on 5 movie

channels for 2 months. After two months the advertisement will be

reduced to 10 times a day. Further the advertisement will also be

displayed on the scroll for first two months. The advertisement will

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contain attractive messages for the youngsters and ice-cream

lovers. The cable advertisements will help create awareness and

capture the attention of large number of youngsters, as movie

channels are mostly watched by youngsters. The distribution of

small magazines (catalog) is a unique method of advertisement

which will readily grasp the attention of people. This method has

been adopted instead of placing advertisement in the paper because

news paper ads are not viewed much by the youngsters. The

magazine will display the details of our products and the

information regarding that.

Messages Delivered Through Advertisements:

Using AIDA model.

Awareness:

NESTLE the biggest in ice-cream industry now here in Pakistan.

Interest:

Enjoy five flavors in just one scoop. What more you can wish for.

Desire:

Flavors you have never tasted before…………it’s only the beginning

let us show you what ice-cream really means.

Action:

Just try us once we promise you it will be like nothing you’ve ever

experienced.

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Advertisement Costs: (source: world call help line)

World call cable charges Rs.250 /min for advertisement on five

movie channels.

For scroll advertisement world call charges 45000 per month

To distribute a magazine of 5-7 pages, each page of dimensions 6”

by 5” costs app Rs.4 per piece.

Public Relations:

Building good relation with our clients is essential to capture large

share in the market. These public relations will be built by

arranging festivals occasionally especially like BASANT.We will be

giving free kites on that the kites will be marked by our (product)

brand name. This will not only help in creating good public

relations but also crate awareness among the public.

Sales Promotion:

Our major sales promotion is by giving special discounts or

coupons to our customers and retailers. For example with every

purchase of 3 liter family pack extra one liter would be absolutely

free. We will arrange these kinds of discount activities’ on timely

basis to keep an edge over our competitors’.

Direct Marketing:

Direct marketing is an important entity in our promotional mix.

Presently there are many groups of youngsters who are really

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interested in trying these kinds of new products. The important fact

is that they not only themselves seek products from the best

possible providers but also refer their fellows. Our sales people will

approach them and build relations with them. Another technique

we will use is sending occasional mails to the registered users on

the web, thus communicating ourselves directly with the most

potential group of our market. These mails will give details of our

new products along with a redirection to our web site

(www.nestleicecream.com.pk)

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DDeettaaiillss ooff PPrroommoottiioonnaall BBuuddggeett::

Note: This is the budget required for promotional activities for

the first 2 months after the launch.

Total Budget: 1,110.000

Allocation

Activity Budget Required

Rs

Details

World Call Cable

Advertisement

450,000

1 minute

advertisement 20

times a day.

World Call cable

Scroll

90,000 First two months

after the launch

Magazines 320000 10,000 copies every

Sunday

Public relation

activities

5 % of total

budget i.e.

250000

Prize money to the

winners, giving

away shirts and key

rings etc

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CCoonncclluussiioonn::

Nestlé is the world's leading food company. Since many decades it

has been associated with providing high quality, customer and

consumer focused products. Our company Nestle (ice-cream) will be

focused on becoming number one in nutritious, health and

Wellness Company. We will take pride by setting consumer

satisfaction our first priority and we will be successful in the

upcoming years.