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HAFZA AYESHA SIDDIQA (11-EE-045)
FAZAL KAMAL (11-EE-037)
SYED ARSALAN ALI KAZMI (11-EE-
FATIMA IDREES (11-EE-036)
TABLE OF CONTENTS
Nestle in Pakistan
Current Strategic Approach
Porter’s 5 Forces analysis
• “Nestlé” is a Swiss-German word which means “Little Nest”
which is its trademark
• Nestlé is the worlds’ number one food company
• 5th largest world’s company according to its turn over
• 2 million 31 thousand people employed from all over the
world and present in 81 countries of the globe having 522
• Over 700 products renovated or innovated in the past five
years, with wellness in mind
"Nestlé is the largest food company in the world. But, more im
portant to them is to be the world's leading food company”.
Ice Cream Prepared
Pet care &
■ Hong Kong
■ Republic of Korea
■ Saudi Arabia
■ Sri Lanka
■ United Arab Emirates
Total 81 countries
NESTLE IN PAKISTAN
Nestlé MilkPak Limited (NML) was incorporated in
Pakistan under the Companies Ordinance, 1984 & listed
on Karachi and Lahore stock exchanges since 1980.
Joint venture between Nestle Switzerland and MilkPak
Limited came about in 1988.
Nestlé Pure Life was launched in Pakistan in 1998
Nestlé believes that leadership is not just about size; it is also about
behaviour. Trust, too, is about behaviour; and we recognise that trust
is earned only over a long period of time by consistently delivering
on our promises. These objectives and behaviours are encapsulated
in the simple phrase, “Good Food, Good Life”, a phrase that sums
up our corporate ambition.
• Most famous food company in Pakistan
• For a usual customer nestle depicts qualityPARADIGM
• Nestle uses the same symbol world wide
which is a part of there marketing strategySYMBOL
• Controls more than 70 of world bottled
• Daily production of a wide range of products.
• Launching new products every once in a year
• Striving to dominate the global water market of
• Must follow the standards determined by WHO.
• Headquarters in Switzerland.
• Matrix Organizational structure
(i) Threat of New Entrants : Low
Nestlé, the has been around in Pakistan for decades and
boasts a long history of quality products and consumer
satisfaction, which has allowed the company to obtain a
considerable share of the market.
(ii) Threat of Substitute Goods: High
Due to the nature of the industry, Nestlé is best with the
threat of substitute goods. From bottled water to milk-based
products, there are arrays of similar products that compete
directly with Nestlé.
(iii) Bargaining Power of Supplier: High
Nestle is known for strong relations with the suppliers
around the globe due to its immense buying power and
also because of the fact that in such dairy and
agricultural products quality is always important. Nestle
cares of its suppliers which in return pays them off in the
form of quality products
(iv)Bargaining Power of Customers: High
Customers carry huge quantity of bargaining power
concerning their utilization of different Nestlé products.
(v) Competitive Rivalry within the
Nestle has a very strong position in the food processing
industry but few major rivals do exist in the industry.
Unique features and technologies
40 & 60% test result criteria
Less consumer research
in few areas
Market expansion by
Innovative marketing strategies.
Easy to approach outlets.
Strong research and development department.
Growing sales and profits.
Major shareholder in the food industry of Pakistan.
Strong distribution networks.
The target market of Nestle products is upper middle and high class
because lower middle and poor class cannot afford to buy Nestle
products due to its premium price compare to other companies like
It is a main weakness of Nestle products that there are different
companies which provide substitutes of Nestle products but the
name of Nestle products is always stand in the last because of low
advertising and marketing.
☼ Nestle have opportunity to expand their product line like tea etc
☼ They can introduce more health-based products, and because they
are a market leader, they would likely be more successful.
☼ Transition to a "Nutrition and well-being" company.
☼ Nestle can make itself as social company.
☼ Company can open separate stores for eliminating retailers.
Price fluctuations due to rupee devaluation as raw material are
Effect of Seasonality’s upon sales.
Inflation is getting higher and higher so the purchasing power of the
people is decreasing day by day.
Major Player may enter target market Legal and ethical issues.
Market segment growth could attract new entrants.
Main competitors Shezan, Olfrut, Maza and Haleeb are main threat
for Nestle juices especially the Shezan is growing very fast.
Bonus packages and increment in salaries for a selective
level of work and efficiency should be awarded to attract
the employees’ concern.
Staff should be made more responsible by implementing
strict rules and regulations and taking disciplinary actions
against any un-professional behavior.
Nestle is a market leader due to different reasons:
Its price is high against its competitors but it matches its quality
with its competitors.
Its packaging is good.
We can easily find Nestle from any retailer shop.