in depth analysis of nestle Milkpak

1. 1
2014
Faizan Zahid FA13-DDP BBA-012
Laraib Ansar FA13-DDP BBA-024
Maryam Razaque FA13-DDP BBA-
019
Principles of Marketing: Final project

2. 2
Acknowledgements
Praise and thanks to Allah, the lord of universe who is either of all knowledge and
wisdom to mankind. We bow our head in gratitude to almighty Allah who blessed
us with the capability to complete our project, which was a challenge for us.“We
the group members would like to avail this opportunity to thank our course
instructor of Principles of Marketing, Miss Tahira Umair for his cooperation and
support as a teacher.” We feel pleasure in expressing heartfelt gratitude to our
families for their encouragement affection, support, constant help and prayers
at all times without which it was not possible for us to achieve this target

3. 3
Table of contents:
Acknowledgements
Executive summary______________________________________________________4
Company Introduction (history, mission, vision etc)__________________________________5
Company’s Marketing Department Hierarchy_______________________________________7
Company Business Portfolio_____________________________________________________8
Chosen Brand (Name, Logo, Launching Time, Slogan, Target Market, Value proposition)_____9
Current Marketing mix_________________________________________________________12
Customer – driven Marketing strategy (Which your Product follow)_____________________13
Apply BCG Matrix and Product market expansion grid on your chosen brand._____________14
External & internal factors affecting the brand ____________________________________17
SWOT analysis_______________________________________________________________20
Product classification, company Product line & product lifecycle_______________________23
Pricing Strategy ( Launching Period)______________________________________________24
Brand Positioning, Personality & brand strategy_____________________________________24
Channel of distribution_________________________________________________________27
Competitive advantage & Competitor Analysis_____________________________________29
Tools of promotion mix / IMC used by company for selected brand_____________________31
Current Advertising campaign (Preferably electronic Media Commercial)________________35
Conclusion__________________________________________________________________37
References__________________________________________________________________39.

4. 4
Executive Summary:
This is an informative report in nestle Pakistan private limited, in this report we have described
how nestle came into being internationally and in Pakistan. Through our research we found out
how much Nestle cares about its customers. Good food Good life is the principal they always
follow. We have described the marketing strategies nestle uses and we have explained their
performance of nestle. Nestle Pakistan limited formally known as nestle Milkpak limited is a
subsidiary of nestle a company of Swiss origin headquartered in Vevey, Switzerland. It is listed
on Karachi and Lahore stock exchanges. For 5 years in a row the company has successfully
placed itself amongst top 25 companies of KSE. Its principal activities are to manufacture
process and sell food product. Noodles, baby food, and infant formula milk and breakfast
cereals in Pakistan.
Nestle is a low cost leader with its efficient operations hence it provides its customers with
high quality products and sells them at a premium price. Therefore it is earning good profits.
Nestle 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.
When nestle introduced its products in Pakistan people were neither aware nor accustomed to
them. Therefore nestle ran an extensive marketing campaign to educate people and create a
need for its products.
In this report we did several types of marketing analysis on Milkpak such as SWOT analysis,
external and internal factors, brand personality, brand positioning, brand strategy etc.

5. 5
NESTLE MILK PAK
Introduction:
Nestlé Pakistan is proud of its commitment to excellence in product safety and quality and to
providing value and aims to be the leading Nutrition, Health and Wellness Company. As a
socially responsible corporate, we always focus on environment friendly operations, ethical
business practices and our responsibility towards the communities.
Nestlé in Pakistan is operating since 1988 under a joint venture with Milk Pak ltd and took over
management in 1992.
The company’s strategy is guided by Nestlé’s Corporate Business Principles which are in line
with internationally accepted best practices and ethical performance culture. Nestlé’s existing
products grow through innovation and renovation while maintaining a balance in geographic
activities and product lines. Long-term potential is never sacrificed for short-term performance.
The Company’s priority is to bring the best and most relevant products to people, wherever they
are, whatever their needs are, and for all age groups.
Nestlé Pakistan today is the leading Food & Beverages Company in Pakistan with key focus on
Nutrition, Health and Wellness and reaching the remotest of locations throughout Pakistan to
serve the consumers. Nestlé Pakistan also prides itself in being the leaders in Nutrition, Health &
Wellness. Ever since 1867, when Henri Nestlé invented the first infant food, nutrition has been in
our DNA. Today more and more consumers mirror our emphasis on nutrition, as they realize that
food choices affect their health and quality of life.
Nestlé Pakistan operates in many ways but people, products and brands are the main flag bearers
of the Company’s image, and we continue to enhance the quality of life of Pakistanis.
History:
1860-1905
In the 1860s 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. Henri Nestlé endowed his company with the symbol derived from his name.
His family coat of arms, the nest with a mother bird protecting her young, became the
Company's logo and a symbol of the Company's care and attitude to life-long nutrition. The
Nestlé nest represents the nourishment,security and sense of family that are so essential to life.
1905-1938

6. 6
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 Governmentcontracts dried up
and consumers switched back to fresh milk. However,
Nestlé’s management responded quickly, streamlining operations andreducing debt. The 1920s
saw Nestlé's first expansion into new products, with chocolate the Company's second most
important activity.
1938-1975
Nestlé 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 staple drink of the US military. Nestlé's production and sales rose in the
wartime economy. The end of World War II was the beginning of a dynamic phase for Nestlé.
Growth accelerated and companies were acquired. In 1947 came a lot of mergers. Diversification
came with a shareholding in L’Oreal in 1974.
1975-1996
Nestlé divested a number of businesses1980 / 1984. In 1984,
Nestlé'simproved bottom line allowed the Company to launch a new round of acquisitions, the
most important being American food giant Carnation.
Nestlé's growth in the developing world partially offset a slowdown in the Company's
traditional markets.
1996-2000
The first half of the 1990s proved to be a favorable time for Nestlé: trade barriers crumbled and
world economic markets developed into a series of more or less integrated trading areas. The
opening of Central and Eastern Europe, as well as China, and a general trend towards
liberalization of direct foreign investment was good news for a company with interests as far-
flungand diverse as Nestlé. While progress since then has not been asencouraging, the overall
trends remain positive. Nestlé opened the 20th century by merging with the Anglo-Swiss
Condensed Milk Company to broaden its product range and widen its geographical scope.
2000-present:
In July 2000, Nestlé launched a Group-wide initiative called GLOBE(Global Business
Excellence), aimed at harmonizing and simplifying business process architecture; enabling
Nestlé to realize the advantages of a global leader while minimizing the drawbacks of size.
Nestlé was First to Produce: Infant milk, Condensed milk, Milk chocolate, Soluble coffee and
Freeze-dried coffee.

7. 7
Company Mission and Vision
Nestlé’s mission, in the words of our founder Henri Nestlé, is to: “...positively influence the
social environment in which we operate as responsible corporate citizens, with due regard for
those environmental standards and societal aspirations which improve quality of life.” -- Henri
Nestlé, 1857.
Lead a dynamic, passionate and professional workforce – proud of our heritage and positive
about the future.
Meet the nutrition needs of consumers of all ages – from infancy to old age, from nutrition to
pleasure, through an innovative portfolio of branded food and beverage products of the highest
quality.
Deliver shareholder value through profitable long-term growth, while continuing to play a
significant and responsible role in the social, economic, and environmental sectors of Pakistan.
Hierarchical details of Marketing Department
Nestle is a big name and it is one of the best brand of the country having the largest market share
in milk industry in Pakistan. It is not only one person who is marketing the milk pack everyone
who is part of Nestle is marketing it. If we make the hierarchy of the marketing of Nestle Milk
pack we will find out that there is a brand manager who is responsible for all activities that will
take place in the marketing department under him is sub brand manager who is responsible in the
absence of the brand manager. They are the top management and mostly decide what to do and
how to do. What steps should be taken to do the marketing. Under them there is a whole
marketing team who work according to the instructions which they have got from the top
management. This team is further divided into sub teams. All the decision regarding the T.V
commercials, radio, news paper and billboards are decided by the brand manager on the advice
and on the bases of statistical calculations. For example for placing a bill board all calculations
are made that what size of billboard will be suitable, where should be it place so that is well seen,
how much should be spend on it either it is in our budget or not. All these things are taken in
account and a lot of thinking is done before applying the idea.

8. 8
Business Portfolio
Nestlé is committed to the following Business Principles in all countries, taking
into account local legislation, cultural and religious practices:
1. Ambient dairy
 Milkpak
 Nido
 Every day
2. Chilled dairy
 Nestle plain yogurt
 Nestle Dahi
 Nestle zeera raita
 Nestle podina raita
3. Bottled water
 Nestle pure life mineral water
4. Culinary and food
 Maggi
5. Baby food
 Cerelac
6. Breakfast cereal
 Nestle koko crunch
 Nestle milo
 Nestle corn flakes
 Nestle fitness
7. Coffee
 Nescafe classic
 Nescafe gold
 Nescafe 3in1 coffee
8. Confectionary

9. 9
 Nestle crunch
 Nestle kitkat
 Chosen Brand:
Milkpak.
Brand Logo:
Brand logo is a stick drawing of a home with MILKPAK written under it, which
totally indicates that

10. 10
Launching time:
Milkpak was therefore incorporated in January 1979 and began commercial production in
November 1981. In 1984 Milkpak started marketing the Frost line of fruit juices which had been
introduced a few years earlier by Packages Ltd. Nestle Milkpak was launched almost three
decades back and since then it shares the most market share.
Slogan:
“yehi hai Doodh ka khalis maza”
TargetMarket:
Geographic Segmentation:
Geographic segmentation approach markets are divided into different units these units may
include nations states, countries or even may neighborhood consumer often have different
buying habits depending upon where thy reside Geographically Nestle has been very successful
in targeting those areas where its competitors are not easily available. So Nestle Delight will

11. 11
have an advantage over its competitors in this case of all purpose milk. Nestle can use its current
supply chain to deliver the milk Fto its target markets. A large segment belongs to the northern
and rural areas of Pakistanwill be covered by Nestle because of strong distribution network.
There is a gap in the supply cycle of milk in some critical situations when shortage occurs due to
short of raw material supply.
Province wise Segmentation:
 SINDH
 PUNJAB
 BALOCHISTAN
 NWFP
Demographic Segmentation:
Dividing the market in the basis of demographic variables such as age sex, family size,
education, income, and social classes are called demographics segmentations.
Nestle is currently targeting house wives, people of all ages especially growing children on basis
of its purest form of milk. Young mother’s segment should be addressed for the better growth of
their children because the purest form of milk. So, Nestle fulfill the need of complete healthy and
nutritious food for everyone in family. Youth is to be addressed with respect to the energy they
need to perform their daily tasks.
Age Gender Social Class Occupation Income Range
4-20 Teen Ages Middle &
Upper
N.A N.A
20-50 MALE Upper Upper,
Upper Middle,
Upper Lower,
Self-employed,
Job Holders
50,000-250,000
per month
20-50 MALE Middle Upper,
Middle Middle
Job Holders,
Self-employed
10,000-50,000 per
month
20-50 FEMALE Upper Upper,
Upper Middle,
Upper Lower,
Housewives,
Job Holders
50,000-250,000
per month
20-50 FEMALE Middle Upper,
Middle Middle
Housewives,
Job Holders
10,000-50,000 per
month

12. 12
BehavioristSegmentation:
Dividing consumer into groups according to their uses loyalties or buying responses to a product
is behaviorist segmentation for example product of brand usage degree of usage are combined
with demographics and psychographic criteria to develop profiles of market segments Nestle has
an advantage that they have already got a strong brand image. People are loyal to this brand,
making use of which Nestle can specially target this segment & offer them any new product or
highlight any feature into marketing campaign to sell more.
Customers Profile:
Families, children, Females House wives between the ages of 25-35 who are conscious about
health of their children.
NESTLE is focusing People as a whole regardless of demographic, psychographics and
geographic. The main target of the firm is PEOPLE. This can be seen from their media and
hoardings. Even on the packing design one can see the FAMILY, which focuses all the age
groups.
Current Marketing Mix:
Product:
Quality product, Product style and logo, Product life cycle.
Price:
Competition based pricing. Milkpak is holding a large share in the market due to its quality at
same price as compared to competitors.
Place:
Milkpak is not sold directly to consumers and the complete distribution process is followed. It
uses indirect channels for distribution like:
 Manufacturer
 Distributor
 Wholesaler
 Retailer
 Consumer
Promotion: Nestle focuses on health conscious people in their advertisement.
Marketing Strategies: Marketing programs of Nestle Milkpak Ltd. are very influential one.

13. 13
Whenever new products or new packaging of existing product is launched; it is properly
communicated through an orchestrated promotional plan like events or sponsors, music programs
are sponsored, point of purchase and point of sales materials are properly displayed at visible
places of retail outlets. In this way, proper awareness about the project are created and the sales
are stipulated.
Supporting Activities
In supporting activities Nestle Milkpak Ltd. is having competencies in procurement, technology
development, human resource management and infrastructure. So far as technological
development is concerned, Nestle Milkpak Ltd. has the advantage of technical knowhow got
from Nestle V.A. Switzerland.
Management of human resources at Nestle Milkpak Ltd. is very good. Newly recruited employed
are trained as per requirement. Quality control and information management are contributing a
lot in making the infrastructure of Nestle Milkpak Ltd. very effective and efficient.
Capacity Increase of Milk Powder Line at Kabirwala Factory Kabirwala Milk Powder Plant
which began production in September 1996, doubled its capacity in February 1999. A new NIRO
evaporator was installed to meet increased processing requirements during the coming years.
Customer driven Marketing strategy:
Nestlé is an organization working globally. As the operations of the organization areextended in
almost all countries, it is not doubtless at all the competitive focus must be at the heart of the
company’s international strategy. Nestlé’s competitive strategies are closely affected with
foreign direct investment (FDI) in milk, dairy, beverages and other
food businesses. Nestlé has an objective to balance sales obtained from low risk and low growthc
ountries of the developed world with high risk and potentially high growth markets
of underdeveloped or developing countries i.e. Africa and Latin America. Nestlé identifies
the potential profits from these high-risk countries, but doesn’t take unnecessary risks just for the
sake of growth. This strategy and process of circumventing keeps growth steady while
maximizing shareholders‟ value.

14. 14
BCG Matrix:
Stars:
The products with high market share and high market growth are categorized as star products of
the company. This means that star products can be seen as market leading products. These
products will need a lot of investment to retain their position, to support further growth as well as
to maintain its lead over competing products.
CashCows:
The products with high market share and less market growth are categorized in cash cows. This
is due to less competitive pressures with a low growth market and they usually enjoy a dominant

15. 15
position that has been generated from economies of scale. Cash cows are still generating a
significant level of income but are not costing the organization much to maintain.
Questionmarks:
These products prove to be tricky ones for product managers. These products are in a
high growth market but does not seem to have a high share of the market, hence are
labeled as question marks.
Dogs:
Product classified as dogs always have a weak market share in a low growth market. These
products are very likely making a loss or a very low profit at best. These products can be a big
drain on management time and resources
Milkpak is categorized in the cash cow products of nestle, Milkpak has been successful covering
major portion in the market of Pakistan and is a source of generating major capital for the
company. Milkpak enjoys a dominant position in the market and has proven to be one of the best
milk in Pakistan.
Market expansion grid:
Existing product New product
Existing market Market penetration:
 Milkpak
Product development:
 Nesvita
New market Market development:
 Mineral water
Diversification:
 Nestle crunch

16. 16
Marketpenetration:
The market penetration strategy can be used by a company to find ways to better adapt to the
current market and increase its sales and profits. In the market penetration strategy the company
is increasing its marketing efforts in order to gain a bigger market share for their existing
products on the current markets. Market penetration strategy can be applied on Milkpak since it
covers a huge market share and more opportunities are available to increase the market share.
Some of the ways to increase market share would be to try to convince current customers to buy
more products by making them believe that it is a healthy and a reliable product. Moreover by
attracting the competitor’s customers to buy your product, this can be done by advertising the
idea that your product is comparatively better in every manner whether it is quality, price or
quantity etc.
Product development:
Product development is used when there is a new product which has to be introduced in an
existing market. Nestle Nesvita launched recently in the past couple of years needs to be implied
upon the product development strategy. This may be done because the company’s products are
not selling anymore or that the company has identified new segments which it had missed before
and wants to introduce new product to increase product sales. There are majorly three tactics
which the company can use for Product development.
1. The company can develop new features for the product.
2. The company can develop different product quality levels.
3. The company can improve the product’s technology.

17. 17
Marketdevelopment:
The market development strategy is used when the product is an existing product but the market
is new. . A company might decide to increase its territorial reach and therefore enter a new
market. The new market may have tough competitors, or it may happen that the new company
may be received very positively. Nestle mineral water an existing product requires the
implementation of the market development strategy. A major way to increase market share
would be to create the awareness that pure is necessary for a healthy life, convincing people to
prefer bottled water in comparison to tapped water.
Diversification:
Diversification strategy is used when a company enters new markets with new products. In such
a scenario, the demands of the new market might be different from the current markets where the
company exists. Thus, the company has to bring new products in new markets and hence the
complication rises. Nestle crunch is identified as the diversification product of the company.
External and internal factors affecting the brand:
External factors:
Some of the major external factors affecting the brand are:
 Political
 Economical
 Social
 Technological
 Legal factors
Politicalfactors:
Political factors or how and to what degree a government intervenes in the economy.
Specifically, political factors include areas such as tax policy, labor law, environmental law,
trade restrictions, tariffs, and political stability. Political factors may also include goods and

18. 18
services which the government wants to provide or be provided (merit goods) and those that the
government does not want to be provided (demerit goods) The company policies are affected and
its budget is also affected. Nestle pays15% sales tax and 18%excise duty when they import
chillers from other countries.
Economicalfactors:
Economic factors include economic growth, interest rates, exchange rates and the inflation rate.
These factors have major impacts on how the company operates and makes decisions. For
example, Interest Rates Affects Company’s cost of capital and therefore to what extent a
business grows and expands. Exchange rates affect the costs of exporting goods and the supply
and price of imported goods in an economy. Hence forcing the company to increase the price of
the product.
Socialfactors:
Social factors include the cultural aspects and include health consciousness, population growth
rate, age distribution, career attitudes and emphasis on safety. Trends in social factors affect the
demand for a company's products and how that company operates. Companies may change
various management strategies to adapt to these social trends such as recruiting older
workers. People mostly prefer fresh and open milk and rely less on processing milk because they
think that milk companies add chemical skin milk during process, so such factors are to be
considered important.
Technologicalfactors:
Technological factors include environmental aspects, such as R&D activity, automation,
technology incentives and the rate of technological change. They can determine barriers to entry,
minimum efficient production level and influence outsourcing decisions. Furthermore,
technological shifts can affect costs, quality, and lead to innovation.

19. 19
Legalfactors:
Legal factors include discrimination law, consumer law, antitrust law, employment law, and
health and safety law. These factors can affect how a company operates, its costs, and the
demand for its products.
Internal factors:
An organization's internal environment is composed of the elements within the organization,
including current employees, management, and especially corporate culture, which defines
employee behavior. employee behavior directly affects the brands performance.
Missionstatement:
An organization's mission statement describes what the organization stands for and why it exists.
It explains the overall purpose of the organization and includes the attributes that distinguish it
from other organizations of its type. A mission statement should be more than words on a piece
of paper; it should reveal a company's philosophy, as well as its purpose.
Organizationalculture:
The organizational culture is an organization's personality. Just as each person has a distinct
personality, so does each organization. The culture of an organization distinguishes it from
others and shapes the actions of its members.
Formal structure:
The formal structure of an organization is the hierarchical arrangement of tasks and people. This
structure determines how information flows within the organization, which departments are
responsible for which activities, and where the decision‐making power rests.

20. 20
SWOT Analysis:
Strengths:
Brand Name:
Milkpak is a product of nestle. Milkpak is a trusted brand known throughout the country for its
nutritious wholesome goodness and pure natural taste.
Quality:
The quality of Milkpak is superior and they continuously work to maintain the quality. They
believed that quality and persistent commitment to continuous improvement are essential to our
ongoing success.
UHT (Ultra Heated Treatment):
They use ultra heat treatment to kill the spores in milk.UHT is the sterilization of food by heating
it for an extremely short period, around 1-2 seconds at a temperature exceeding 135 degree C.
Researchand development department:
Research and development department continuously works on innovation for the milking process
and for the improvement of quality. It is essential to keep coming with breakthroughs for the
success of any product or the success of any company and mikpk has always delivered.
Distribution Network:
Nestle Milkpak has a very strong distribution network which covers all over Pakistan.
Packaging:
Milkpak was the first tetra pack introduced in Pakistan in 1981 with green and white packaging.
This green and white color associated with the Pakistan’s flag.
Brand loyalty:
Milkpak is the product of Nestle; Nestle enjoys a good and strong reputation all over Pakistan
which ensures brand loyalty from its customers.

21. 21
Weakness:
External sources for raw material:
As nestle is dependent on external sources for the raw material, they therefore sometimes face
some difficulties in executing the production process timely.
Packaging from Tetra pak:
Milkpak depends entirely on Tetra pak for the packaging of its dairy products, Tetra pak being
the only option for packaging for nestle because of their monopoly in the business, charges more
than sufficient amount for packaging which leads to increase in prices and decrease in
advertising budget . As we are all aware that it requires frequent advertising to survive in the
milk business.
Weak implementation of CSR:
The company has announced and is involved in various programs that aims to make company
more eco friendly and improving the working conditions fits suppliers .Still Nestle receives a lot
of criticism over the effectiveness of its programs.
Opportunities:
Developits own farms:
Milkpak should develop its own farmhouses to ensure continuous and qualitative supply rather
than relying on others.
Increased Government funding/support:
Government of Pakistan decided to increase the farmers funding. This is an opportunity for
Milkpak because farmers will be able produce more quantitative and qualitative milk. Explore
support from the government of Pakistan such investment opportunities.
Strong and continuous marketing campaign:
Nestle needs to initiate the programs for strong and continuous marketing campaign as it will
only proof to be beneficial for the organization in every manner.

22. 22
Suitable environment:
Pakistan is the seventh largest milk producing country in the world with the annual output of
over 22 billion liters. There are substantial growth opportunities considering the average yield of
Pakistani animals at only 1100 liters/annum as compared to 6000 liters/annum for animals in
Europe and USA. There are nearly 20 million milk producing animals in the country.
Threats:
Competitors:
Two main competitors Haleeb and Olpers are the main threats for Milkpak especially Olpers
market share is increasing rapidly.
New entrants:
Market segment growth could attract new entrants
Politicaland economicalissues:
Economic slowdown can reduce the demand and politically Pakistan is not a stable country.
Religious extremists:
Due the foreign origin of the company some extremists avoid the use of nestle and recommend it
to others not to use Milkpak or any other brand of nestle
Rising raw food prices:
With an overall growth of worlds economy and population, demand for raw food increases
resulting in higher material costs and squeezed margin for nestle.
Inflation:
Inflation is getting higher and higher day by day which is decreasing the purchasing power of
people.
Product classification:

23. 23
Milkpak is categorized in the convenience goods as it is included in the necessities of life.
A convenience product is a consumer product that takes little thought, is routine, purchased
often, appeals to a large target market and the consumer purchases with little planning. These are
the products that appeal to a very large market segment. They are generally consumed regularly
and purchased frequently. Because of the high purchase volume, pricing per item tends to be
relatively low and consumers often see little value in shopping around since additional effort
yields minimal saving.
Product Line:
A product line is a number of products grouped together based on similar characteristics. The
characteristic used to split products, will depend on the firm and its product strategy. Milkpak is
the only liquid milk sold by nestle in Pakistan, whereas a couple of other products are sold i.e.
Nido and Everyday both are powdered milk. These products are not absolutely of the same
nature but more or less carry the same characteristics.
Product life cycle:
Eventually every product goes through all the stages of product lifecycle. Nestle Milkpak after
the stages of introduction and growth is now enjoying a stable maturity stage. The product covers
a wide range of market and is a known product throughout the country.
Maturity stage is a time period when the product sales are at its peak. During the maturity stage,
the product is established and the aim for the manufacturer is now to maintain the market share

24. 24
they have built up. This is probably the most competitive time for most products and businesses
need to invest wisely in any marketing they undertake. They also need to consider any product
modifications or improvements to the production process which might give them a competitive
advantage.
Pricing strategy: (launching period)
Price is the value that is put to a product or service and is the result of a complex set of
calculations, research and understanding and risk taking ability. A pricing strategy takes into
account segments, ability to pay, market conditions, competitor actions, trade margins and input
costs, amongst others. It is targeted at the defined customers and against competitors.
There are several pricing strategies; following are the four basic strategies variations of which
are used in business:
1. Premium pricing
2. Penetration pricing
3. Economy pricing
4. Skimming strategy
The pricing strategy which was implemented for Milkpak at the time of launch was the
penetration strategy.
Penetrationstrategy:
Price is set artificially low to gain market share quickly. This is done when a new product is
being launched. It is understood that prices will be raised once the promotion period is over and
market share objectives are achieved.
Brand positioning, Personalityand Brand strategy:
Brand positioning:
Put simply, brand positioning is the process of positioning your brand in the mind of your
customers. Brand positioning is also referred to as a positioning strategy, brand strategy, or a

25. 25
brand positioning statement.
In both of these advertisements, the advertiser is trying to project the fact that the product is
absolutely safe and healthy, moreover the company is implying the fact that the product is an
absolute necessity which completes and makes the family stronger. Projecting into the minds of
customers that it is a safe product and is to be used by the whole family. It basically is what kind
of perception you create of your product in the minds of the customers. Milkpak has now
positioned itself as a part of their daily life.
Brand personality:
A set of human characteristics that are attributed to a brand name. A brand personality is
something to which the consumer can relate, and an effective brand will increase its brand equity
by having a consistent set of traits. This is the added-value that a brand gains, aside from its

26. 26
functional benefits. There are five main types of brand personalities: excitement, sincerity,
ruggedness, competence and sophistication. Milkpak is having good market share and growing
so fast Nationwide, as per our internal research suggests Currently Milkpak is having Brand
Personality is contribution of Love, Care, Family and power as our previous advertisements have
made in consumers mind that every ad shows family, love, care and everyone likes to have
Milkpak as a Milk, IRON as feature of Milkpak helps individual to fulfill routine tasks with help
your IRON POWER which gives 20% IRON requirements. We here are trying to build a Brand
Personality i.e. milk for everyone.
Brand strategyfor Milkpak:
Your brand is more than your logo, name or slogan — it’s the entire experience your prospects
and customers have with your company, product or service.
Your brand strategy defines what you stand for, a promise you make, and the personality you
convey. And while it includes your logo, color palette and slogan, those are only creative
elements that convey your brand. Instead, your brand lives in every day-to-day interaction you
have with your market:
 The images you convey
 The messages you deliver on your website, proposals and campaigns
 The way your employees interact with customers
 A customer’s opinion of you versus your competition

27. 27
Channel of distribution Milkpak, Nestle:
Nestle uses indirect distribution method for the distribution of Milkpak all over Pakistan , the
hierarchy of distribution is as follows
Manufacturer Distributor Retailer Consumer
The distribution strategy pursued by the Nestle Milkpak is intensive. It means that the product
distribution is covering wide market.
There are regional headquarters of the company in all the big cities of the country. There is a
distributor in each big city. In order to reach remote areas, a distributor engages a sub-distributor
for a small area. The company is directly linked with the main distributor and the sub-distributor
has no such direct contact with the company. The company provides the Milkpak inventory to
the main distributor that is further dispatched to retailers and sub-distributors.
There is a regional manager of Nestle that employs Area Sales Manager for a specific area. Then
comes the Territory Sales Officer (TSO). TSO is directly linked with the distributors to set and
achieve targets.
The targets vary from area to area and are set on the basis of history of the area sales. As the
sales targets depend upon the area history of sales; these are usually achievable. If these targets
are facing some kind of setback, the promotional schemes based on areas are announced as
discussed earlier.
For distribution Pakistan is divided into three geographical zones and then in further regional
zones.
North Zone:
 Islamabad and North outstations
 Jehlum
 Peshawar
Central Zone:
 Lahore
 Faisalabad

28. 28
 Gujranwala
 Multan
 Sahiwal
South zone:
 Karachi
 Hyderabad
 Quetta
 Sukkur
Some of the Distributors in Lahore:
SaeedBrothers:
 Model town
 Township
Zakir and Sons:
 Airport
 Ghazi road
Deandistributors:
 Muslim town
SMR Distributors:
 Fatah Garh

29. 29
Competitive advantage of Milkpak:
 Nestle Milkpak never compromises on quality.
 Nestle Milkpak,s extensive milk collection system ensures that the milk you get is of the
finest quality.
 Nestlé’s products are available in every city and town
 Nestle is using the latest technology in its production units.
 Nestle makes milk powder of the surplus milk in winter and converts this milk powder
into UHT milk in summer.
 Observing the market situation nestle often offers seasonal discounts on Milkpak to gain
competitive advantage.
 When on promotion Nestle offers additional free products with Milkpak for instance
small pack of powdered milk free with 1 liter pack of Milkpak.
 Milkpak has arranged various schemes offering gifts to people in return for empty
wrappers of Milkpak, gifts such as cars were distributed through lottery.

30. 30
Competitor’s analysis of Milkpak:
Some of the major competitors of Milkpak are as follows:
 Olpers
 Haleeb
 Goodmilk and others
Olpers:
Engro Foods had only recently been established by Engro a traditional giant in Pakistan’s
chemical and fertilizer industry. Engro Foods launched Olpers Milk after long tenure of
consumer research and time and money consumption. During this time they are continuing
observing the issues with the packed milk. After three years of their launch Olpers Milk gain
reputation among consumers and now currently holding 30 percent of market share. Within the
dairy market, company now has a diverse portfolio of products ranging from different types of
cream to premium low fat milk.
Haleeb:
In1986 the commercial production process started with UHT liquid milk from May 21, 1986.
The liquid milk was the first product launched in the market. The company started its operations
in 1985 having the state of the art plant in the entire dairy sector of Pakistan. Comprising an area
of 32 Acres, this plant had a capacity of producing 80,000 liters per day of milk.
Price analysis with competitors:
Products: Price of 1 liter pack Price of 250 ml. pack
Milkpak Rs. 110 Rs.30
Olpers Rs. 110 Rs.30
Haleeb Rs. 75 N/A
Goodmilk Rs. 88 Rs. 29

31. 31
Tools ofpromotion mix / IMC used by company for selectedbrand:
Promotion activities play an important role in re launching any product. Increase in target market
is possible by personal selling. It includes persons in retail stores telling the benefits to potential
customers about importance of milk in standard packed form. Awareness plays the most
important role. They should taste house wives on different places. Because they are the main
servers of such kind of nutritional diets to their family members TV commercials and Bill
Boards should be planned to be advertised properly.
Determining the promotional methods:
There are various promotional methods like personal selling, advertising, sales promtions, public
relations etc. but Nestlé attracted the existing customer of the imported brands and potential
customers through its advertising campaign. In their campaign, Nestlé mostly focus the small
Market Share as of 2011
Nestle 40%
Olpers32.5 %
Goodmilk,Haleeb and others
27.5%

32. 32
children who are the major portion of our society and milk and such kinds of Products are basic
requirement of grooming children that the reason Nestle launched Nesvita Milk especially
designed for growing children because introduction of calcium diets in daily diet chart is basic
requirement.
Broadcast media:
TELEVISION:
Nestle use 40% of their budget on the broadcast media. Television is the major medium used for
the advertisement. Nestle has been playing commercials on the TV since they have launched the
Nestle Milkpak. Their Ads cover all the lifestyles of the people. In their ads they have shown
many situations.
 Friends sitting together
 Child playing
 Swimmer Families in good mode
 Younger generation in smiling energy form
 Family enjoying picnic etc.
In the entire above situations they have showed the importance of the pure milk, when it’s about
athlete, he is health conscious, when friends sitting together and having fun what they need. The
main thing the Nestle wanted that people should trust on that Nestle is purest form of milk.
RADIO:
Nestle is not only advertising on Television but they are also advertising on radio. They play the
vocal ads on Fm 100 and 101. Advertising on radio is basically for the people who are on roads.
PRINT MEDIA:
In the print media Nestle is using the following mediums to advertise.

33. 33
Magazines & Newspapers:
Nestle advertise in both magazine and newspaper on weekly and monthly basis. Following is the
list of magazine and newspaper in which nestle advertise:
 The News
 Nation
 Dawn
 Sunday Magazine
 The Economist MAG, Etc.
BELOW THE LINE
Below the line includes following mediums of advertisement:
 Direct mail
 Outdoor
 Transit
 Supplementary material
DIRECT MAIL ADVERTISING
It is any form of advertising issued directly to the prospect, whether through the mail, fax, online
computer services, salesperson, dealers or other means rather than through traditional mass
media.
Postcards
Nestle sends postcards to their home and office persons in the category of retailers and whole
sellers. On different occasions nestle send them different post cards to build long term healthy
relationships so that they can contribute in increasing the market share of their product.

34. 34
Leaflets/ flyers:
Nestle has placed many types of leaflets, which contain information about Nestle Milk pack,
at different outlets.
Folders / brochures:
Nestle send brochures of their product to their customers through mail to make them aware of
new innovations and products. This helps nestle in getting more customers.
OUTDOOR:
Nestle spend a big share of their advertisement budget on the outdoor Advertisement, which
includes:
 Painted Billboards
 MMT
 Vinyl sheet
 Rotary Plan
Here is an example of their billboards and rotary plan: Nestle has placed more than 100
billboards across the roads. They have put on different skins of them, which are showing
different situations in which people are using pure water. According to the Nestle they use heavy
outdoor advertisement to remind people about the availability of their product because it is a
product for which people never pre plan to purchase it so to motivate them for the purchase of
Nestle Milk Pack they have to place billboards. Beside this they rotate the skins of their
billboards after few months the reason for this is that people lose interest in those skins when
they see it for a long time so when they rotate them and place the new one that create the interest
among the people.

35. 35
TRANSIT ADVERTISING
Transit advertising is a category of out of home media that includes bus and taxicab advertising
as well as posters on transit shelters, terminals, and airports. Types of transit advertising:
 Inside cards
 Outside posters
 Terminal posters
 Taxi / bus exteriors
 Terminal posters
Nestle has placed many attractive and attention getting posters on the terminals and Stations in
different cities.
ScrollWorks
Nestle is also advertising on scroll works, as we know scroll works advertise through mini vans
in the city. These van moves throughout the city when people see the scroll work those ads
remind them of Nestle Milk Pack during delivery towards the retail outlets and whole sellers.
Skins on Buses
Nestle has pasted their skins on Daewoo city buses, in this category they are advertising on
certain buses
Current advertising campaign:
NESTLÉ Pakistan and Tetra Pak Pakistan has proudly co-launched the Pakistan Safe Milk
Movement today. The aim of the movement is to educate every Pakistani on the importance of
consuming milk that is safe. In addition, the movement also intends to give enough awareness to
everyone to be able to understand how milk could be unsafe and the subsequent adverse effects
on health owing to the consumption of unsafe milk.

36. 36
The ceremony was hosted by Sidra Iqbal, leading media anchorperson and development activist.
Among other notables from both NESTLÉ Pakistan and Tetra Pak Pakistan, the launch event
was attended by renowned philanthropist Syed Babar Ali and also by distinguished writer and
respected media personality Anwar Maqsood, the brand ambassador for NESTLÉ MILKPAK,
who is also spearheading the movement.

37. 37
Conclusion:
Summing it all up I would say that Milkpak introduced packed milk in Pakistan for the first time.
Nestle created and has revolutionized the milk industry since its existence. Milkpak has been a
leader in the respective fields since its existence but nowadays competitions are tough some
strong competitors have entered the market and are consuming the markets share of Nestle, but
Nestle still is on top of the mountain striving hard to maintain its superiority. But still nestle
needs to keep up the good work and strive as hard as they can to keep up their position in the
market.
Nestle Milkpak have a great share in the different multinational companies. It isstatistically
calculated that Nestle Milkpak have 50% share in the Nestle company and now Nestle become
the leader of all multinational companies in food products and beverages. Nestle is operating in
all big cities in Pakistan and try best to provide its Products to other small cities and towns.

38. 38
Appendix:

39. 39
References:
http://www.nestle.pk/
http://www.nestle.pk/brands
http://www.nestle.pk/aboutus
http://www.ukessays.com/essays/management/historical-
background-of-the-company-milkpak-management-essay.php
http://articles.latimes.com/keyword/nestle-food-co
http://www.reuters.com/article/2015/01/22/us-sweden-currency-
borg-idUSKBN0KV2A420150122