1 HISTORY OF THE NESTLE...............................................................................................................2 2 BUSINESS OF THE NESTLE..............................................................................................................8 2.1 INDUSTRY/SECTOR...................................................................................................................................9 NESTLÉ IS CONSCIOUS OF THE FACT THAT THE SUCCESS OF A CORPORATION IS A REFLECTION OF THE PROFESSIONALISM, CONDUCT AND THE RESPONSIBLE ATTITUDE OF ITS MANAGEMENT AND EMPLOYEES. THEREFORE RECRUITMENT OF THE RIGHT PEOPLE AND ONGOING TRAINING AND DEVELOPMENT ARE CRUCIAL................................................................9 2.2 SCOPE OF TRADE (NATIONAL/INTERNATIONAL).........................................................................................11 2.3 LATEST DEVELOPMENTS REGARDING BUSINESS OF THE ORGANIZATION.........................................................12 3 MANAGEMENT PROCEDURES......................................................................................................13 3.1 ORGANIZATION STRUCTURE OF THE ORGANIZATION....................................................................................15 4 PRODUCT & SERVICES OFFERED BY THE ORGANIZATION..............................................16 4.1 PRODUCT LINE OF THE ORGANIZATION.....................................................................................................16 4.2 BRAND NAME OF EACH PRODUCT & SERVICE OFFERED ............................................................................30 4.3 BRAND AMBASSADORS OF ORGANIZATION/PRODUCTS ................................................................................32 5 HUMAN RESOURCE DEVELOPMENT POLICIES.....................................................................33 5.1 RECRUITMENT & SELECTION PROCEDURES................................................................................................34 5.2 TRAINING & DEVELOPMENT PROCEDURES ...............................................................................................34 6 MARKETING STRATEGY................................................................................................................35 6.1 INTEGRATED MARKETING COMMUNICATION (IMC)...................................................................................38 6.2 MARKET SHARE....................................................................................................................................39 7 FINANCIAL PROCEDURES.............................................................................................................41 7.1 METHODS FOR RAISING FUNDS...............................................................................................................41 7.2 INVESTMENT OPPORTUNITIES ..................................................................................................................43 8 MAJOR COMPETITORS IN THE MARKET.................................................................................46 9 SWOT ANALYSIS...............................................................................................................................47 10 CONCLUSION...................................................................................................................................53 11 REFERENCES......................................................................................................................................1

1 History of the Nestle

Nestlé headquarters in Vevey. The company dates to 1867, when two separate Swiss enterprises were founded that would later form the core of Nestlé. In August of that year, Charles A. and George Page, brothers from Lee County, IL in the United States, established the Anglo-Swiss Condensed Milk Company in Cham. In September, in Vevey, Henri Nestlé developed a milk-based baby food and soon began marketing it. In the succeeding decades both enterprises aggressively expanded their businesses throughout Europe and the United States. (Henri Nestlé retired in 1875, but the company, under new ownership, retained his name as Farine Lactée Henri Nestlé.) In 1877 Anglo-Swiss added milk-based baby foods to its products, and in the following year the Nestlé company added condensed milk, so that the firms became direct and fierce rivals. Henri Nestlé. In 1905, however, the companies merged to become the Nestlé and Anglo-Swiss Condensed Milk Company, retaining that name until 1947, when the name Nestlé Alimentana SA was taken as a result of the acquisition of Fabrique de Produits Maggi SA (founded 1884) and its holding company, Alimentana SA of Kempttal, Switzerland. Maggi was a major manufacturer of soup mixes and related foodstuffs. The company’s current name was adopted in 1977. By the early 1900s, the company

was operating factories in the United States, United Kingdom, 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 quickly, streamlining operations and reducing debt. The 1920s saw Nestlé's first expansion into new products, with chocolate the company's second most important activity.

Nestlé's logo used until 1970s. Nestlé felt the effects of World War II immediately. Profits dropped from US$20 million in 1938 to US$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, Nescafé, which was a 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 the merger with Maggi seasonings and soups. Crosse & Blackwell followed in 1950, as did Findus (1963), Libby's (1971) and Stouffer's (1973). Diversification came with a shareholding in L'Oréal in 1974. In 1977, Nestlé made its second venture outside the food industry by acquiring Alcon Laboratories Inc. In 1984, Nestlé's improved bottom line allowed the company to launch a new round of acquisitions, notably American food giant Carnation and the British confectionery company Rowntree Mackintosh in 1988, which brought the Willy Wonka Brand to Nestlé.

The Brazilian president, Lula da Silva, inaugurates a factory in Feira de Santana (Bahia), February, 2007. 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 Petfoods (1998), and Ralston Purina (2002). There were two major acquisitions in North America, both in 2002: in June, Nestlé merged its U.S. ice cream business into Dreyer's, and in August a US$2.6 billion acquisition was announced of Chef America, the creator of Hot Pockets. In the same time frame, Nestlé came close to purchasing the iconic American company Hershey's, though the deal fell through. Another recent purchase includes the Jenny Craig weight loss program for US$600 million. In December 2005 Nestlé bought the Greek company Delta Ice Cream for €240 million. In January 2006 it took full ownership of Dreyer's, thus becoming the world's biggest ice cream maker with a 17.5% market share. In November 2006, Nestlé purchased the Medical Nutrition division of Novartis Pharmaceutical for $2.5B, also acquiring in 2007 the milk flavoring product known

as Ovaltine. In April 2007 Nestlé bought baby food manufacturer Gerber for $5.5 billion. In December 2007 Nestlé entered in a strategic partnership with a Belgian chocolate maker Pierre Marcolini. Nestlé agreed to sell its controlling stake in Alcon to Novartis on 4 January 2010. The sale forms part of a broader US $39.3 billion offer by Novartis to fully acquire the world’s largest eye-care company.

Our story begins in 1867, when Henry Nestle developed a baby formula that saved child’s life and marked the beginning of Nestle.

It is originally consisted of two companies and two products, Henry Nestle and His baby food in Vevey, and the Anglo Swiss Condensed Milk company and its condensed Milk in Cham, both in Switzerland.

• • • • •

His first factory was located in Vevey. In 1875, He sold His Company and retired. In 1880 second factory was built in bercher. In 1883, first time Nestle built a factory abroad, in Edlitz Grimmenstein. In 1890, Vevey factory produced 28 billion cans of Milk food and 2.2 million cans of condensed Milk.

In 1912, Nestle begins it long relationship with South Asia when Nestle condensed Milk company start.

the Kabirwala plant becomes a fully owned unit of Nestle Pakistan. 1n 1998. sheikhupura factory starts the production of Nido Milk Powder cereals. Nestle Milk collection system in Punjab matures and company is able to buy all its Milk from Formers instead of relying on contractors.• In 1979. Cream and Butter as well as fruit Juices. Nestle In Pakistan • Nestle have been serving Pakistani consumers since 1988. when our parent company Switzerland based on Nestle first acquired share in Milkpak. a plant is acquired at Kabirwala. nutrition. In 1990. It manufactures UHT Milk. Milkpak Ltd. • In 2005. Is founded by Syed Baber Ali. Nestle Quality Policy • Quality is the foundation of our food. . • • Nestle acquires 40% share in Milkpak. In 1997. Nestle takes over the running of company and begins to develop its Milk collection network. Health and Wellness Company. Is renamed again Nestle Pakistan. • 1n 1992. Nestle Milkpak Ltd. • • • In 1996 Milkpak is renamed to Nestle Milkpak Ltd.

• • Quality is to strive for Zero defect and no waste. sets the objectives and demonstrates its commitment towards quality. regulatory and quality requirements in every step of our value chain. We enforce food safety. • • Quality is to Guarantee. We are committed to offering products and services to all customers that meat their needs. • • Quality is every body’s commitment. • All Nestle functions across our value chain are fully responsible to follow mandatory norms. Quality is to win consumers trust and preference. food safety and full compliance. It complies with all relevant laws and regulation. • We adopt “No waste” and we constantly look for competitiveness and opportunities for continuous improvement of the quality standards delivered to our customers. . We focus on facts and results and we strive for Zero defect and excellence in every thing we do. Our management takes the lead.• • • • • A Nestle brand name on product is a promise to the customers that : It is safe to consume.

It is present in all five continents. So extension of Kabirwala Plant is the example of our company vision.2 Business of the Nestle Nestle is the largest food company in the world. To provide fresh and pure products to the customers. we believe that research can help us to make better food. we introduced (SHE) Safety.000 employs Company Mission At Nestle. As per our company vision in 2020 production capacity of all plants working in Pakistan is being increased. so that people live a better life. has an annual turnover of 74. so we are trying to make good food. Good food is the primary source of good health. having 231. Health and environment policy to protect health of our employs and keep clean our surrounding environment Company Vision • • Vision of Nestle Milkpak Company is to expand business according to the increasing demand of market. There are 509 factories are running in 83 countries.7 billion Swiss Frances. . .

from Islamabad in the north. and the remaining three are dedicated to producing our trusted brands of bottled water. to Karachi in the south.1 Industry/Sector  Nestlé is conscious of the fact that the success of a corporation is a reflection of the professionalism. • • Our products are manufactured in five facilities scattered around the country. we consider it our duty to make sure that our manufacturing processes are clean. Therefore recruitment of the right people and ongoing training and development are crucial. • • As citizens of Pakistan. conduct and the responsible attitude of its management and employees. We uphold the principles of the UN Global Compact and encourage women to participate. • As is the Nestlé policy around the world. Regular audits have confirmed that our factories' environmental management meets the Nestlé international standard. . hygienic and safe. and making our packaging environmentally friendly. We are constantly working to reduce emissions at our factories. Two state-of-the-art multipurpose factories are located in the agricultural heartland of the Punjab.  Nestlé continues to maintain its commitment to follow and respect all applicable local laws in each of its markets. we care for our people. reducing and treating wastewater.2.

the Kabirwala factory was constantly enhanced. by providing a comfortable and enabling work environment. • In 2001 we acquired the AVA® water factory in Islamabad. we were amongst the first to employ female operators working alongside men in our production department. the factory continued to make notable achievements. 2006 has seen the commencement of Kabirwala Extension Project that would be completed in April 2007 at a cost of about Rs.0 billion. • Soon after it was acquired. • Indeed. • • In 2005. as a subsidiary. It became a fully owned unit in 2003.• In 1990. both for powder and liquid. In 1992 we added a MAGGI® Noodles plant was added and 1996 saw an additional of a milk powder. we began upgrading its capacity. located in Khanewal district of the Punjab. By 1997 it was a fully owned unit of Nestlé Pakistan Ltd. and we immediately instituted a programme of major improvement to bring the facility on par with international standards. • Over the years. . NESTLÉ® EVERYDAY® tea whitening powder was introduced in 2002 and revolutionised tea and coffee drinking in homes and offices around the country. Nestlé Milkpak acquired the Kabirwala factory. and provide our consumers with their favourite brands of bottled water in convenient package sizes. This has helped us speed up production. The project has seen expansion of milk processing capacity to triple its current size. 4. • We are proud that the Islamabad factory has made efforts to bring Pakistani women into the workforce. better and more efficient machinery has been introduced. • Over the years.

It is statistically 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 Milkpak have a great share in the different multinational companies.2 Scope of Trade (National/International) Pakistan is an agricultural country. Nestle is operating in all big cities in Pakistan and try best to provide its Products to other small cities and towns. and the large part of milk production is wasted. According to Pakistan Dairy Development Authority • Only 0. There is a multi-hierarchal distribution system of the milk. cooling tanks and other facilities are not available. the farmers are not getting reward of their work. Infrastructure is not developed. Profitability for the farmers is very less. agriculture accounts for 20. Agriculture and livestock.2.25 Billion liters in the country. Dairy industry contributes 49% to the agriculture value and 11% to the GDP.5 Billion liters pasteurized milk is available in the country. Like other countries Dairy is not a dedicated profession of the people. farmers is associated with dairy and agriculture at the same time. Only 4% of the total milk production is processed and used in urban areas of the country. But the Processed milk is only 4% of the total production.52 Billion liters UHT and 0. . Annual production of milk is 35. • In urban areas 4.7 Billion liters milk is provide by Gawalas. All these factors are making this industry unattractive for the farmers and the industry is no developing up to mark. According to Ministry of Food.9 percent of the GDP.

It is differentiating its brand by adding Iron and Vitamin “C”. • There is a potential of about 5 billion liters of milk sold in the urban areas. Nestle is the world largest food company and nestle Milkpak is Nestlé’s famous UHT milk brand. the income level of urban population is also good so this segment has potential for UHT and Pasteurized milk. The immense competition is going in the market. Nestle has brand recognition throughout the world and they can export milk powder and other value added products in future. The Nestle Milkpak is following growth strategy.27 Billion liters processed milk is sold by the milk shops. Juicy Juice Brain Development and Juicy Juice Immunity are fruit juice beverages made with natural ingredients.3 Latest Developments Regarding Business of the Organization —(April 6. . Nestle Milkpak has south Asia’s biggest Plant at Kabirwala. fortified with important nutrients and blended with filtered water to naturally lower the sugar and calorie content. it is recommended that Nestle Milkpak should invest more in milk business and other value added milk products. • In urban areas people are more health and quality conscious. In this way Nestle Milkpak can fulfill the local demand by locally processed milk and milk products instead of the imported milk products. It is targeting upper and middle class. 2. 2009)—Nestlé Juicy Juice is premiering two products designed to benefit children during different stages of their growth and development.• 1.

EVP of Strategic Business Units and Marketing Francisco Castañer.For Nestlé USA. Middle East divisions Petraea Heynike. EVP of Pharmaceutical and Cosmetic Products. Nestlé University offers over 30 courses in five key curriculum areas: Innovation. 3 Management Procedures The executive board. Nestlé University teaches employees how to cultivate their capabilities and how to realize their full potential. People. includes: • • • • • Paul Bulcke. are just some of the ways you can learn. Oceania. Export . a distinct entity from the board of directors. Purchasing. EVP of United Kingdoms Division James Singh. Harris. Nestlé CEO John J. Human Resources • • Michael Powell. EVP of Asia. Functional Capabilities and Working at Nestlé. Control. EVP of Finance. Africa. Tax. Execution. Chairman. Web-based and instructor-led classes. It is fundamental to our culture of learning and development and to the fostering of our corporate principles and values. EVP. training is more than just a transfer of knowledge and skills. and CEO of Nestlé Waters Frits van Dijk. Legal. plus online access to books and media. Liaison with L'Oréal.

The Secretary to the Board is David Frick. Rolf Hänggi. and Dairy Partners Americas with Fonterra. Andreas Koopmann. Jean-René Fourtou. Jean-Pierre Meyers. EVP of Research and Development. Naïna Lal Kidwai and Beat Hess. Carolina Müller-Möhl. the world's largest company in cosmetics and beauty. Beverage Partners Worldwide with Coca-Cola. Current members of the board of directors of Nestlé are: Peter Brabeck-Letmathe (chairman). . Paul Bulcke. and Galderma a joint venture in dermatology with L'Oréal. Laube. Environment.• • • Luis Cantarell. Deputy EVP of Nutrition Strategic Business units Werner J. The Laboratoires Inneov is a joint venture in nutritional cosmetics between Nestlé and L'Oréal. Production. Daniel Borel.4% of the shares of L'Oréal. EVP of Europe divisions Richard T. André Kudelski. Technical. Bauer. Others include Cereal Partners Worldwide with General Mills. Steven Hoch. Joint ventures Nestlé holds 26.

1 Organization Structure of the Organization National sales manager Regional Sales Manager Consumer Service manager Or Consumer Service Officer Area Manager System Suport Event Territory in charge System support manager Sales Associates Officer Event Manager DS Leader .3.

a need for sector wise coordination and combine efforts was there to ensure utilization of all available resources to move forward in the direction.internal efforts and some initiatives with government have being going on since long in order to maximize the development of the sector .nestle is also working towards setting up mega dairy farms to exemplify best farm practices and ways to boost mike production 4. Rich Chocolate.still. Through the agric-services department nestle has being involved with various infrastructure and support related initiatives such as development of model farms. setup of milk chiller and import of Australian cow to boost milk production .1 Product Line of the Organization Nestle Good Start Gentle Plus Powder Formula.4 Product & Services offered by the Organization Nestle Pakistan has being at the forefront of development of dairy sector in Pakistan as major industrial stake holder for a while . No Sugar Added. 50 Cans $459.99 Nestle Hot Cocoa Mix. 8-Count Envelopes (Pack of 12) $33.26 .

Coffee-Mate French Vanilla Non-Dairy Creamer.1 Oz Baby Ruth 24 X 2.91 Visit Store NESTLE NES70821 Coffee $9.95 CSN Office Visit Store Baby Ruth 24 X 2.1 Oz $21. 16-Ounce Bottles (Pack of 12) $29. Shelf Stable.88 .

. 1..99 . Cans/ Nestle Good Start.85 Visit Store 6 Pack-32 Oz.7 oz 36 ct Bit-o-Honey.7 oz 36 ct $37. Cans/ Nestle Good Start Baby Formula/mix $39.Visit Store Bit-o-Honey. 6 Pack-32 Oz. 1.

Nestle GOOD START Supreme Infant Formula With Iron Powder 188oz.00 Visit Store Nestle Cerelac Trigo con Leche Nestle Cerelac Trigo con Leche $14..Visit Store Nestle Milk Chocolate Bar 24ct Nestle Milk Chocolate Bar 24ct $25.95 Visit Store Nestle GOOD START Supreme Infant. ..

Nestle Good Start Protect Plus Formula ..95 Visit Store Nestle Good Start Protect Plus Formula. Nestle Good Start Protect Plus Formula .Visit Store Nestle Good Start Protect Plus Formula..12 oz Can $23....12 oz Can .cs 6 $141.00 .

. NESTLE NES24300 $24.. Rich Chocolate. Rich Chocolate... No Sugar Added. 8-Count $38.99 CSN Office Visit Store NESTLE .99 CSN Office Visit Store Nestle Hot Cocoa Mix.Visit Store NESTLE .33 .. NESTLE NES94100 Wonka $12... Nestle Hot Cocoa Mix.

92 oz Nerd's Rope .79 .99 Visit Store Nerd's Rope .Visit Store Nestle Nips Candy Coffee 4 oz Nestle Nips Candy Coffee 4 oz $1.92 oz $23.

.56 Visit Store Nestle Dark Raisinets Chocolate.89 .Visit Store Nestle Aero Dark 24 X 42g Bars Nestle Aero Dark 24 X 42g Bars $34. Nestle Dark Raisinets Chocolate Covering California Raisins $20. Nestle 31831: Carnation ® Coffee-mate ® Pump Dispenser $19....35 Visit Store Nestle 31831: Carnation ® Coffee-mate ®.

. Nestle GOOD START Supreme Soy DHA & ARA Infant Formula with Iron $15..20 Visit Store Nestle GOOD START Supreme Soy DHA & ARA.. Nestle Carnation Instant Breakfast Essentials.99 ..Visit Store Nestle Carnation Instant Breakfast. Rich Milk Chocolate $31.

Nestle Glucose Control BOOST Strawberry 8 oz ..24/8 ounce cups $81.Case of 24 $41.97 Visit Store .Visit Store Nestle Glucose Control BOOST Strawberry. Nestle Boost Nutritional Chocolate Pudding ....99 Visit Store Nestle Boost Nutritional Chocolate.

. Boost High Protein Nutritional Energy Drink. Nestle Good Start Gentle Plus Powder 12 oz Can $17.95 Visit Store Nestle Good Start Gentle Plus Powder 12...cs 6 $122.49 .Nestle Good Start Gentle Plus Powder 12... Vanilla.. Nestle Good Start Gentle Plus Powder 12 oz Can .08 Visit Store Boost High Protein Nutritional Energy. 8 Ounce Bottle $39..

.. Nestle GOOD START Supreme NATURAL CULTURES BL Infant Formula Powder $24.Visit Store Nestle GOOD START Supreme NATURAL...00 . Nestle Coffee Crisp Dark 70% Cocoa 4 X 24 X 42g Bars $120.99 Visit Store Nestle Coffee Crisp Dark 70% Cocoa 4 X.

99 ..99 Visit Store Nestle BOOST Plus Vanilla 8 oz Bottle -.Case of 24 $26.45 Visit Store 6 Cans . DHA &. Nestle Good Start Supreme Soy.. Nestle BOOST Plus Vanilla 8 oz Bottle ..Nestle Good Start Gentle Plus Infant Formula $59.Visit Store Nestle Good Start Supreme Soy. 6 Cans . DHA & ARA Infant Formula with Iron $73...Nestle Good Start Gentle Plus..

.Visit Store Nestle Coffee Crisp Dark 70% Cocoa 24.56 Visit Store 8 Cans Nestle Good Start Gentle Plus. 8 Cans Nestle Good Start Gentle Plus Formula 12 Oz $95. Nestle Coffee Crisp Dark 70% Cocoa 24 X 42g Bars $34....00 Visit Store .

. 1.Carnation Famous Fudge Kit.2 Brand Name of Each Product & Service Offered • • • • • • • • Nestle Juices Nestle Nesvita Nestle yogurt Bottled Water Chocolate Baby Food Maggi noodles Nescafe .97-Pound.97-Pound Kits (Pack of 2) $27.. 1. Carnation Famous Fudge Kit.99 4.

and Address/city. Use of cash or credit. Acquisitions Details • • • Marketing channel. Transaction Details • • • • • Frequency. prices paid. Today. items bought. and is poised to provide prompt and relevant service to our consumers. to listen to them. our Consumer Relationship Panel exhorts people to "Talk to Nestlé". he put his address on the packages.At Nestlé. Only by listening to what people say can we understand what they want and need. Our consumer services department is staffed by experts in every area related to our products and wellness. . Promotion type. and we make every effort to make sure that their voices are heard. above all. amount and timing of purchases. We believe that consumer services requires us to talk to consumers and also. Only by understanding their needs can we serve our consumers to the fullest. our chief commitment is to our consumers. expressing the same belief in openness and accessibility. When Henri Nestlé prepared his first boxes of infant formula for sale.

" A source close to Rani confirmed the development. We are working out on a few options and a final announcement shall be made very soon.4.Nestle has dropped Bollywood star Rani Mukerji as brand ambassador for its chocolate brand. based in Gurgaon. "Rani is extremely disappointed by Nestle's unprofessionalism. . and replaced by rising South star Asin. talked to us on condition of anonymity. because she has ceased to be a youth icon. Her films haven't really worked out at the box office and we are looking out for someone who is very popular in this category. "Our new strategies include targeting the youth and Rani ceases to be any kind of a youth icon anymore. They knew well that once the contract came up for renewal. Rani had endorsed the product for the last four years. Nestle Munch. Rani was dropped from Fanta commercials. Aamir Khan's Ghajini co-star. and featured in many Television commercials promoting the brand. It is then that we decided that we won't be renewing our contract with her. They wanted to go in for someone cheaper perhaps." the official told us. A few months earlier. Rani would increase her price." Nestle's action seems to reflect the film industry's perception that Rani is no more the box office draw that she once was.3 Brand Ambassadors of Organization/Products June 18. telling us. "Our contract with Rani Mukherjee was due to get over and we were in the midst of planning new marketing strategies for our brand. They should be thankful that Rani has got their product noticed in last four years. 2008 (Sawf News) . A top PR official of Nestle India.

Rani must find it hard to digest the manner in which her standing in the industry has started to unravel. She is also perceived to be too closely aligned to the Yash Raj Films banner by other filmmakers.Rani's stock in the industry has dropped following the poor box office response to her recent films like Saawariya (2007). Till recently. Even her 'friends' in the industry are not ready to bet on her anymore. in the right places at the right time. Not so long ago she counted amongst the top Bollywood actresses. When Kajol vacillated over signing up for My Name is Khan. even though Rani comes through as a more natural Kajol replacement. and Kuch Kuch Hota Hai (1998). every Karan Johar film featured Rani. Laaga Chunari Mein Daag (2007). Karan Johar. it is our mandate to enhance their skills with cutting-edge training and provide them with world-standard facilities. like in Kal Ho Naa Ho (2003). Our groundbreaking Management Trainee Programme aims to . the film's producer and director. 5 Human Resource Development Policies HR is dedicated to our employees. a close friend of Rani. surprised industry watchers by announcing that he would go with Kareena instead. We select flexible. Kabhi Khushi Kabhie Ghum (2001). Ta Ra Rum Pum (2007). innovative people who are ready to confront new challenges and make a difference. often in cameo or relatively insignificant roles. and ensures that we have all the right people with the right skills. Understanding that our people are the bedrock of all our business strategies. and Babul (2006).

Once you've completed the programme. Making use of selection panels that are utilised for all vacancies ensures transparency. we will select the best person for it.develop talented young men and women and help them achieve their potential in a dynamic and enabling environment.You'll be hired in one of various departments at inductee level on a 12-month training programme. Management Trainee ProgrammeIf you're young. 5. Our recruitment and selection practices and procedures are transparent. and comply with legal requirements. if not the decisive. while necessary and valuable in running a complex organization. employees and executives is a decisive. fair. It is a question of priorities. should remain managerial and operational aids but should not become ends in themselves.1 Recruitment & Selection Procedures Employees. Systems and methods. you will be assigned independent responsibilities supporting the company's business needs. The persons involved in the selection panels fairly represent a diverse group. component of long-term success. We like to recruit people into real jobs.2 Training & Development Procedures There are a number of ways you can join us. and when a position becomes available. We begin sourcing Management Trainees in January. . the Management Trainee Programme may be the place for you. A strong orientation toward human beings.We hire fresh graduates as potential managers to develop new competencies and skills through on-the-job development. Over a hundred people travel out of the country every year to take advantage of our international training and development events 5. bright and hard working. people and products are more important at Nestl 頴 han systems.

6 Marketing Strategy Our mission is to: . We offer project-based internship positions in various departments at Nestlé Pakistan.You may be hired as an intern at various points during your academic career: during undergraduate study or graduate school. Most internship assignments are offered during the summer months and generally run for 6 to 8 weeks. you may be considered for employment opportunities after you have completed your studies.Please contact us if you have any queries about our internship programme.Preliminary interviews and screening is organised according to the graduation schedules of Pakistani and foreign universities.If you have any queries about the Management Trainee Programme. and drop us an email!InternshipsInternships are a great way to apply the knowledge and skills you are developing at university and get experience in a leading corporation. If you impress us with your talent & hard work. At the end of the internship you will be required to submit a project or programme report to the company on the topic assigned to you at the beginning of the internship programme. and are followed by interviews with senior management.

Nestlé milkpak. Their functions and details are as follows: The first. production. Technical assistance Beside this. organization. The third company is Nestlé World Trade Corporation that oversees the import and export of merchandise worldwide. 522 new factories in 81 countries. has two areas of activities that are as follows: • • Research and technological development. 200 operating companies. holds the financial shares in the allied companies. has more than 231. marketing. The second.000 employees and more than 8000 products around the globe. it provides know-how in engineering. It also checks the profitability of these companies and to ensure the profitability of the group as whole. which does 98% of its business. 1 basic research outer and 20 technological development groups. It has an annual turnover of 70 billion Swiss francs. Nestlé Milkpak produces in over 81 countries and achieves 98% of its turnover outside Europe. Nestlé milkpak is the world’s largest milk company. There are three companies co-ordinate the activities of some 200 operating companies around the globe. management and personnel training on a continuous basis.· · · Optimise and consolidate resources and processes for a low-cost but efficient Develop and manage simplified and effective supply network to achieve a high Create a continuous improvement culture driven by performance measures and level of service reward Today. Market segmentation and target strategy including consumer profiling . Nestlé milkpak.

There are many uses for segmentation. ranging from 0. Product Segmentation Manufacturers diversify products within each needs base to appeal to buyers with different tastes and wealth. Buyers can buy according to there need between these quantities.25 liters to 1.It is really a big market and it is always difficult to segment the big market. Needs Based Segmentation Milk Pack has made different sizes of tetra packs which can match the needs of buyers.5 liter. .

As a mother you want the best for your child and almost always *worry about his/her health. upcoming product and value added services to the existing product. Children between 1 to 3 years of age experience rapid growth and strong height and weight gains making their nutritional requirements unique. NESTLÉ NESLAC provides the right vitamins and minerals in the right proportions that your little one needs at this particular age. electronic as well as through their websites. Messages like “They knows your taste better than us”.6. Calcium and Multivitamins to help give your child a strong and healthy foundation for life! Market Positioning: They will position our product as a high quality product consumer focused. But are you completely sure if your child is getting sufficient nutrition for his or her good health and development? Many of you may not be so sure. NESTLÉ NESLAC is available in Honey flavour and is enriched with the right balance of Protein. The sources which can use by the company to inform their consumers are print. “Nestle Milkpak now at your door step”. growing-up milk for children 1-3 years of age. “Add additional flavors’ to your life” will help us portray our picture clearly and . That's why we have NESTLÉ NESLA. Iron.1 Integrated Marketing Communication (IMC) Company have a complete imc plan in which they that how can the company will inform their consumer about the new.

. at the same time reasonably priced as compared to others. improving distribution network as well as market penetration and making more effective use of its supply chain. in terms of taste. Mr Martial G. he added. And even as Maggi noodles continue to have the highest sales volume in India. customer focused and. VALENTINE DAY and etc. The Nestle India Chairman. Rolland. said in the latest annual report that the market performance of this product has been below expectations and a full review is being undertaken. Milkpak will position our product against the competitors and gain competitive advantage through our efficient promotional methods. sales of some key products remained below expectations in 2004. Take for example liquid UHT (long shelf-life) milk. using innovations. and by reaching closer to our target market through the arrangement of events like BASANT. Though the company says that it has maintained its market share in most of the product categories by taking a few measures. including managing input costs and price points.distinctly. 6. among all Nestle companies. In short consumers will view us as a product providing highly quality.2 Market Share Nestle steps up efforts to grow market share THE difficult operating conditions across the fast-moving consumer goods (FMCG) industry have affected sales performance of some products of Nestle India last fiscal. Maggi sauces have performed below expectations during 2004 due to aggressive competition.

along with taste and pleasure. Similarly. The Chairman said performance of the new variant is being monitored. even as the company said products such as Nestle Milkybar Eclairs. Nestle Chocostick is being reviewed.Milkmaid Sweetened Condensed Milk did not perform as per plan. Nestle Sweet Lassi and Nestum 123. In the recent past. and that Nestle is working on several initiatives to provide consumers with products of their choice. Nestle has been reviewing the performance of Milo Chocolate Energy Food Drink and it launched Milo with `Badam Shakti' in select cities of Tamil Nadu during last fiscal. Mr Rolland said in the annual report that the company is aware of the fact that with changing lifestyles. Nescafe instant coffee and Everyday Dairy Whitener. Nestle Eclairs and Polo lozenges have performed well. Among the products that continue to perform well from the Nestle stable are Nestle Munch and Nestle Kitkat chocolates. while refraining from passing on the entire increase in commodity prices to consumers. Among new products that Nestle launched last year are Nestle Coffee Eclairs. consumers are seeking food products that provide greater convenience. and Mr Rolland said the company is taking corrective action to improve the performance of Milkmaid Squeezy. . Nestle Chocolate Eclairs. The company reiterated its commitment to the `value for money' and affordability planks and retained investments in brands. in confectionery.

Mr P. the ACM's board has also decided to raise the company's authorised capital from Rs 5 crore (50 lakh equity shares of Rs 10 each) to Rs 10 crore (one crore equity shares of Rs 10 each). Nestlé is a financial leader in the consumer products industry and one of the few firms around the globe with a AAA credit rating.75 lakh shares to UTI Investment Advisory Services Ltd.1 Methods for Raising Funds Ambika Cotton to issue pref shares to UTI venture fund A VENTURE fund promoted by UTI Asset Management Company has forayed into textiles account by choosing to invest in the Coimbatore-based Ambika Cotton Mills Ltd (ACM). To facilitate the preferential share allotment to the UTI. trustees of the UTI's venture fund `Ascent India Fund'. ACM's board of directors early this week decided to issue 8.18 crore from the preferential issue to buttress its capital base. a known name in the premium segment cotton yarn production and exports. told Business Line that his company had chosen the preferential issue route for its least cost proposition to . through preferential issue route.V. The Managing Director of the ACM.7 Financial Procedures An employee in Finance & Control ensures we make financially sound business decisions to meet our long-term profitability goals. 7. We're looking for employees with strong analytical and communication skills. a willingness to embrace change and the discipline to meet financial standards. Chandran. Ambika Cotton will give the preference shares at a premium of Rs 175 per share (of face value of Rs 10 each) and the company stands to mop up Rs 16.

51 lakh shares or close to 70 per cent. which is required to meet company's expansion project. buoyed by the stock markets and driven partly by dividends announced in some of . These investments would also result in enhancing the company's turnover from the present Rs 86 crore to Rs 160 crore on completion of the projects. Ambika Cotton is eyeing Europe and the US as emerging markets for its yarn exports. Considering the previous year's contribution of equity to UTI MF's total sales. The post-preferential allotment will consequently see dilution in the promoters holding in the company by 10 per cent. An increasing interest displayed by investors based in the region in equity funds. figures pertaining to the year ended March 31. considered a relatively risk-averse market for long. He said an extra-ordinary general meeting of the members of the company has been called on May 14 to seek the shareholders approval for the preferential allotment.81 lakh shares or 30 per cent. have sprung a surprise for UTI Mutual Fund. 2005. As much as 75 per cent of the fresh sales recorded by the fund is on account of inflows into various equity products managed by it. this represents a 100 per cent escalation and a significant change for the fund house. indicate. UTI Mutual spreads wings in eastern region SALES figures logged in the eastern region.strengthen its capital base. of the 50 lakh equity shares. thanks mainly to what is being identified as the region's growing appetite for equity schemes. the promoters and their close relatives/associates hold 34. As per the present shareholding pattern of ACM. while the institutions including banks/FIs and the public hold another 14.

Bhubaneswar and Guwahati. Local investors have been responding well to all sorts of products. While this interest has primarily benefited plain-vanilla diversified growth funds. UTI MF's latest offering. He was referring particularly to the dividends declared by schemes such as UTI Master Value and UTI Mastershare. including liquid and floating rate funds. The MF had an overall asset base of around Rs 21. 7.the better-known schemes. it is pointed out. UTI Dividend Yield Fund. has been witnessed nationally and the eastern market is not really an exception. if you go by last year's sales. especially when it is seen against the backdrop of the past. adding that the fund house expects decent inflows from centres such as Kolkata. have resulted in the change. what is also admitted that trend in the region is quite noticeable. head of UTI MF in the East. incidentally. some of the sectoral schemes too have received attention from the investing public.K. is currently being marketed aggressively in the region. These include funds dedicated to sectors such as auto and petroleum. However. The penchant for equity. Maji. Mr Maji observed. "Guwahati.2 Investment Opportunities .000 crore at the end of March. the MF has conceded." he said. can well turn out to be a good market. said Mr T. the former. paid a 100 per cent dividend earlier this year.

Opportunity to transition into full-time employment or Development Program upon conclusion of Internship. Speaking on the occasion. Mr Regi Jacob. . JRG Securities Ltd. said that the company has tied up with Tirumala Tirupati Devasthanam in Andhra Pradesh by setting up an online commodity trading terminal in the temple complex. he said. The Tirupati Temple is the biggest purchaser of commodities such as sugar. JRG starts online trade in commodity. Punjab. NCDEX and MCX. Mr Giby Mathew. The company has already extended its commodity operations to Tamil Nadu. Through the terminal. This system would help investors to trade in capital and commodity markets from a single window anywhere in the world. said that the company has created its own integrated platform known as I-Trade for the purpose. Mr Jacob said. cashew in the country. and it is essential to instantly update about the fluctuations in the commodity markets. has introduced integrated Internet trading venture in commodity and capital markets. capital markets JRG. he added. JRG. Managing Director of the JRG Wealth Management Ltd. cardamom. he said. Managing Director. Discussions are also on to start branches in Abu Dhabi and Muscat. Andhra Pradesh. the TTD management could view the commodity prices from NMCE. had also inaugurated its UAE operations by setting up its first overseas branch in Dubai to provide professional services for the investing community among NRIs in the UAE. one of the leading brokerage houses. Karnataka. Uttar Pradesh and Delhi.

In fact. A note from NIF to SEBI's secondary markets division refers to the gap between the termination of trading in shares of the transferor company and allotment of shares of the transferee company to shareholders of the former. NIF. the foundation has pointed out. For them. and JVSL and Jindal Iron & Steel.Shareholders seek remedy to 'trading' anomalies while restructuring NATIONAL Investors Foundation (NIF) has drawn the securities regulator's attention to what it feels is an "unfair" market practice . NIF has particularly referred to such M&A deals involving Vardhaman Spinning and Mahavir Spinning." the NIF note has pointed out. it is a tedious and costly proposition. "This practice results in unfair discrimination in favour of the shareholders of the transferee company as they are free to trade in the interim. which may easily be anywhere between four and ten weeks. told Business Line. shareholders of the transferor company receive shares of the transferee company even as trading in the shares of the former is discontinued. "The process is quite lengthy. occur in the case of most mergers and acquisitions. Trustee. being available with them. Burroughs Welcome and Glaxo. it makes life extremely difficult for the shareholder fraternity." Mr Sudip Bandyopadhyay. As things stand. Such delays. . whereas the shareholders of the transferor company are in no position to take any steps in the absence of the shares of the transferee company.delay in listing of newlyissued shares after corporate restructuring.

Trading should be resumed in the transferee company's shares only after a reasonable period by when all shareholders of the transferor company have received their quotas. in a manner reflecting the approved swap ratio.A certain mechanism should. Trading in the transferor company's shares. it has further maintained. be available to enable the transferor company's shareholders sell their holdings. therefore. which claims to have taken "the legal position. Listing agreement updates suggested NIF. the market realities and the logistics" into consideration. 8 Major Competitors in the Market INTERNAL COMPETITORS • • • • Haleeb Milk Olpers milk Good Milk Dairy Queen Milk .in spite of the specific shares of the transferee company not being available. It has urged SEBI to consider the following: Stock exchanges should stop trading in shares of both the transferor and the transferee companies in the event of M&As. has further underscored the need to add teeth to the relevant clauses of listing agreement. should be allowed .

A threat to Nestle is the fact that some markets they are entering are already mature. and Germans simply preferred the taste. because they are a market leader. and realize that living longer isn’t only by luck and genetics. they had captured 60% of the market. including in the United States. Consumers are becoming more health conscious. Danone had an established leadership position in the yogurt market in France. LC1 has not been introduced in the United States yet. Since Danone was the first to arrive in the market. Nestle also has an opportunity of being even a larger market leader in Germany with LC-1.EXTERNAL COMPETITORS • • DANONE MILUPA COMPETITORS ADVANTAGES • • We never compromise on quality and quantity Our extensive milk collection system ensures that the Milk you get is of the finest quality. they have always been the market leader . This was due to the fact that they differentiated the product. they can introduce more health-based products in Germany. • Our products are available in every city and town 9 SWOT Analysis One opportunity that Nestle has is that health-based products are becoming more popular in the world. Another opportunity of LC1 is that. Within two years of launching the product in Germany.

are very It is not just a coincidence that Yoplait has vitamin D. They fact that they are the market leader in the United States may be hindering them from innovation.(Yoplait. One of their main goals has been to deliver brands that consumers trust and value and they have succeeded. . General Mills also has some weaknesses. and are widely offered in the United States. Another strength they have is their distribution. Also consumers in France liked the taste of LC-1. Most of these products however. They have been producing Yoplait yogurt for many years. Yoplait has been the leader for years and is constantly innovating new health products. but researchers believe they did not repurchase the yogurt because they preferred the taste of Danone products better. They have not entered into many unknown areas because of their success in the yogurt market. Another threat to Nestle is that there is intense competition in the United States yogurt market. This is one of the reasons why they have been the market leader in yogurt for so long.there. General Mills’ Yoplait division is the leader in the yogurt market in the United States. Another strength that General Mills has is the fact that consumers simply know Yoplait is healthy. Yoplait is the only leading brand of yogurt to offer vitamin D and this vitamin is especially important for adult women. and have offered a series of new products in the past few years in the nutrition department. but they have purposely added this vitamin to target female consumers. General Mills has been a strong competitor of Nestle and they are not short of experience and strength. The health food industry in the United States has been booming and General Mills does not offer enough products in the smaller niche markets. One strength that they have is their brand recognition. Yoplait is distributed to more stores in the United States than any other brand of yogurt.

An opportunity General Mills has is that its Yoplait division is so successful. Arrangement of events. Another opportunity that they share with Nestle is that the health-based and nutritional food market is booming. Good background of the company. and worldwide. They have a large market share over their main competitors in the yogurt market. Educated staff. Nutrition and health is becoming more and more important to consumers in the United States. The main threat that challenges General Mills is that there is intense competition amongst the top players in the yogurt and related markets. . Yoplait is the only division of General Mills that is currently earning a profit. Pre purchase virtual display. Simple supply and demand theories are prevalent in these markets. Along with this comes increased competition to gain market share. Easy to approach outlets. Strengths • • • • • • • Skilled labor. Large number of offerings. They are continually releasing and marketing new products in these markets and they will continue to do so while the market continues to yield profits. Another threat General Mills has is that smaller companies are producing similar products with the same or added nutritional benefits.

05 Weaknesses • • Physically impossibility to have target market. The target market of Nestle Milkpak is upper middle and high class because lower middle and poor class cannot afford to buy UHT milk due to its premium . It Dependency on others (govt.43 353.• • • • • • • Physical evidence Strong Brand image Quality product Solid Financial position Strong supply chain network Qualified work force Commitment to High Quality Products Focus on research and development Estimations of UHT Milk Production and Consumption up to 2008– 09 • Year Annual Production (million liters) Annual Consumption (million liters) 2008-09 => 648.71 2009-10 => 753. There is weak marketing of Milkpak as there is no advertisement of Milkpak on official website. • • Lack of awareness among the target market.89 372. & sponsors) for the arrangement of events.

• Growth of processed milk is increasing with 20% annually so Nestle Milkpak has the opportunity to capture a large share of market. Opportunities • • Increasing interest of people 31billion customers are there in Pakistan for milk.43 353.price. • More people are coming towards processed milk because loose milk is dangerous for health due to a lot of contamination.89 372. • It is a main weakness of milkpak that there are different companies of milk but the name of nestle milkpak is always stand in the last because of low advertising and marketing.05 The projected values of UHT Milk consumption and production are obtained from the ARIMA model.27 billion customer markets is still available to be penetrated. Upton now only 4 billion customers are being facilitated. • • Few and weak competitors Estimations of UHT Milk Production and Consumption up to 2008– 09 Year Annual Production 2008-09 2009-10 • => => 648.71 753. Threats • Major player may enter target market .

Market segment growth could attract new entrants. Economic slow down can reduce demand. Inflation is getting higher and higher so the purchasing power of the people is decreasing day by day. Two main competitors Haleeb and Olpers are main threat for Milkpak especially the Olpers is growing very fast. Taste of consumer has already developed which is hard to change .• • • • • Legal and ethical issues. There is no entry barrier for new entrants as the Olpers has come in the market.

10 Conclusion Problems Faced By Nestle Nestle is facing the problem that is regarding the quality of mill . Nestle must state in writing that it will make required changes to bring its Baby Food Marketing policy and practice into line with International Code and Resolutions. it is being perceive that infant or child belonging to poor family who use low quantity of milk then required in daily use are getting effected. . It is hard to agree the customer to swich to pack milk because of taste which is huredel for further expansion Recommendations Nestle must state in writing that it accepts that the international code and the subsequent relevant World Health Assembly Resolutions are minimum requirements for every country.

nestle.11 References › Mediaé .com www.foodnavigator.foodanddrinkeurope.

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