MARKET POSITIONING AUDIT

Submitted to Tahir Ashfaq Submitted By Arslan Nawaz L1F11MCOM2165 M.Saghir Sarwar L1F11BCMH2021 M.Ali Naqvi L1F11MCOM0164 A.D Ahsan L1F11MCOM2144 Hina Razzaq L1F11MCOM2137 Javaria Abrar L1F11MCOM2142 Sumbal Aftab L1F11MCOM2146 Madiha Saber L1F11MCOM2155

1.0 Porters Five Forces Porter's five forces analysis is a framework for industry analysis and business strategy development formed by Michael E. Porter of Harvard Business School in 1979. Porter's five forces include - three forces from 'horizontal' competition: threat of substitute products, the threat of established rivals, and the threat of new entrants; and two forces from 'vertical' competition: the bargaining power of suppliers and the bargaining power of customers. Porter referred to these forces as the micro environment, to contrast it with the more general term macro environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit.

Porters 5 Forces and Nestle Pakistan

Intensity of competitive rivalry

Bargaining power of suppliers

Threat of new competition

Porter's 5 Forces

Bargaining power of customers

Threat of substitute products or services

2.0.1 Intensity of competitive rivalry

Nestle Pakistan is a subsidiary of nestle international. Nestle Pakistan produce high quality products. In Pakistan there are the following competitor of nestle. Which can effect nestle sales.

Nestle Competitors
Product Category Nestle product in category Competitor Competitor Products

Dairy

Milkpak, Nesvita, Nido Everyday, Milkpak Cream Dahi, Raita

Haleeb Food Engro Foods Limited Shezan

Haleeb Milk, Haleeb Skimz, Haleeb Doodh, Haleeb Yogurt & Raita, Haleeb Cream Olpers, Olwell, Tarang

Beverages

Nestle Nectar Juices

Haleeb Food

Shezan allpure, twist and regular juices Haleeb Just Fruit, Tropico Nectar, Fun Milk

Fauji Breakfast Cereals Koko Krunch, Corn Flakes Kellogg

Wheat, Rice, Choco, Honey Flakes K Challenge, All Brain, Honey, Corn Flakes, Cocoa Krispies, Cracklin' Oat Bran

Shezan Shezan international can compete nestle by its products. Shezan all pure, twist and regular juices can compete nestle nectar juices because company charge low price from consumer as from nestle. Unilever Pakistan

Unilever Pakistan sub brand Knorr noodles is a major competitor of maggi noodles. Knorr noodles are available in market in six different flavors. Chatt Patta Noodles, Chicken Noodles, Chicken Jalapeno Noodles, Ketchup Noodles, Thai chicken Noodles and Lemon Chilli Noodles. While maggi is available in four delicious flavors: Chicken, Chatkhara, Masala and Lemon. Haleeb Food Haleeb food can compete nestle by its products. Haleeb Milk, Haleeb Skimz Liquid & Powder, Haleeb Doodh (Chocolate, Stawberry, Vanilla & Almond), Haleeb Yogurt & Raita (Mint or zeera), Haleeb Cream, Haleeb Just Fruit (5 flavors), Haleeb Tropico Nectar (Orange & Mango & Apple), Haleeb Fun Milk (chocolate, strawberry, vanilla and almond with cardamom and saffron), can shuffle the sales of Nestle MilkPak, Nestle Every day, Nido, Nestle dahi & raita, MilkPak cream, Nestle nectar Juices respectively according to their product categories. Engro Foods Limited Its sub brands Olpers, Olwell, Tarang can affect MilkPak, Everyday. Fauji Cereals It is giving 10 different types of cereals as compare to nestle Pakistan which giving only two flavors. Kellogg Kellogg competing nestle cereals.

2.0.2 Threat of new competition

These are the few companies which are entering in Pakistan to sell their products and making profit. It is quite possible that these companies can shuffle the sale of nestle or made it competitor. Minute Maid Fresher Fruiticana Qaswa Nutrivita Minute Maid Minute maid is the parent company of Coca-Cola Company. Which producing high quality product. Minute maid provides orange, Apple juices.

Fresher Fresher provides juices in Apple, Mango, Grapes, Cheery. Fruiticana Fruiticana is Canada based company. It provides mango, orange, guava flavor juices in Pakistani market. Qaswa Qaswa giving two flavor juices mango and guava to its buyer. Nutrivita Nutrivita is Pakistan based company fully owned by Agro ventures (Pvt) Ltd. It's providing five flavor cereals in Pakistan.

2.0.3 Threat of substitute products or services

Nestle product substitute are given by following companies. Dairy product substitutes Nestle liquid milk products are MilkPak, Nesvita. There are some companies which providing its substitute like Haleeb food giving Haleeb milk and Skims. Engro food private Ltd produces Olper's. In condensed milk nestle giving Everyday for tea milk and Nido as tea milk. Engro provides Tarang as substitute. Juices Substitute Nestle produce nectar juices under the brand name. Shezan all pure can be said as it substitute. Boiled Water Nestle provide mineral water as brand name pure life. PepsiCo Inc. provides Aquafina to consumer as substitute of pure life.

Cereal Nestle provide Koco Krunch and Cornflakes as their cereal. Kellogs and fauji provides large variety of cereal according to the taste and age group of buyer.

2.0.4 Bargaining power of customers (buyers)

Nestle provide the best and most reliable food and beverage products to meet their needs throughout the day, throughout the life. They are often reassured that they will find well-known brands out of home. This statement also reflects the image of high quality products that Nestle offers. Nestle has the advantage that it offers complete range of high quality ingredients, base products and meal components, as well as leading consumer brands such as Nescafe, MilkPak and pure life. Quality is the cornerstone of the success of the Nestle Company. Every day, millions of people all over the world show their trust in the company by choosing Nestle products. This trust comes from a quality image that has been built up for over a century. Therefore, the quality of the products ultimately enhances the quality of the consumers life. Nestle has proven this ability a number of times by introducing new products that were required by consumers. Especially, the launch of Nestle Pure Life in Pakistan proves the accuracy of this fact. In Pakistan, there was a need for safe and healthy drinking water and Nestle responded to this consumer need by introducing Nestle Pure Life. Building customer relationship based on customer value and satisfaction is at the very heart of modern marketing. The two fold goals of Nestle marketing are to attract new customer by promising to provide high quality product and they maintain old customers by providing then superior quality products.

2.0.5 Bargaining power of suppliers

The fruits uses for Nestle products are high in quality and purchase at good rate. Fruits for Nestle are collected from different farms of Pakistan and they are checked by Nestls best authority officers at International Standards. One of the great suppliers of nestle are Packages Limited. Packages Limited is the biggest dealers in Pakistan too many recognize Companies of Pakistan such as Tetra Pak Pakistan Ltd. They are one of the good suppliers of the Nestle. As they provide huge product to Nestle thats why they are offering good price to the Nestle. To sum up, we can say that Nestle suppliers are offering great prices to Nestle as Nestle is wellknown company of Pakistan and collect raw material at high level.