INTRODUCTION

As a nutrition, health and wellness company, Nestl, is committed to the enhancement of quality of life by helping communities in which it operates to meet basic and essential human needs. Over the years Nestl has used its resources, skills and technology to help find solutions to the many socio-economic challenges facing communities. Many of the communities are confronted by challenges such as poor sanitation, lack of clean water, poverty, diseases, malnutrition, food security and many others.

MISSION STATEMENT Nestl is dedicated to providing the best foods to people throughout their day, throughout their lives, throughout the world. W ith our unique experience of anticipating consumers needs and creating solutions, Nestl contributes to your well-being and enhances your quality of life.

VISION STATEMENT The Nestl global vision is to be the leading health, wellness, and n u t r i t i o n c o m p a n y i n t h e w o r l d . N e s t l P a k i s t a n s u b s c r i b e s f u l l y t o t h i s vision. In particular, we envision to :Lead a dynamic motivated and professional workforce proud of its heritage and bullish about the future 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 the country.

SWOT ANALYSIS STRENGTHS a. b. c. d. Brand name Quality products Easy availability Effective pricing strategy through larger business operations. WEAKNESSES a. High prices b. Lack of advertisement c. No credit sales

OPPORTUNITIES a. Market expansion b. Sell product on corporate level c. Diversity in product portfolio

THREATS a. Competitors b. Price fluctuations c. Customers switch easily.

PEST ANALYSIS NESTLE

POLITICAL ECONOMICAL SOCIAL TECHNOLOGICAL

political instability, government interference , taxation law, labor law

inflation rate, economic growth rate health conciousness, demographic trend, social responsiveness, life style changes

new products, technological innovations, spending on R&D

IFE MATRIX NESTLE STRENGTHS availability Immense prod range High quality standards Strong Financial position Market share Brand image Customer loyalty innovation WEAKNESSES High prices Lack of advertisement No credit sales Low sales margin Cultural barrier of launching international brands Affordability Doesnt offer discount to end user WGT. 0.08 0.09 0.1 0.05 0.10 0.06 0.06 0.07 RATING 4 3 4 3 3 4 3 4 WEIGHTED SCORE 0.32 0.27 0.4 0.15 0.30 0.24 0.18 0.28

0.09 0.05 0.02 0.09 0.05 0.04 0.05 1.00

2 1 2 2 1 1 1

0.18 0.05 0.04 0.18 0.5 0.04 0.05 3.18

EFE MATRIX NESTLE

OPPORTUNITIES Market expansion Sell product on corporate level Credit policy can increase sales Diversity in prod portfolio

WGT. 0.13 0.09 0.08 0.2

RATING 4 4 2 3

WEIGHTED SCORE 0.52 0.36 0.16 0.6

THREATS Government interference Competitors (olpers) Price fluctuations Customer switch easily Purchasing power of people is getting lower Economic conditions 0.08 0.09 0.1 0.08 0.09 0.09 3 1 2 4 2 2 1.00 0.24 0.09 0.2 0.32 0.18 0.18 2.85

CPM MATRIX OF NESTLE AND ITS COMPETITORS NESTLE Critical success factor Advertising Product quality Price Management Financial position Customer loyalty Market share Total weight rating ws OLPERS rating ws GOOD MILK rating ws NURPUR Rating ws

0.08 0.25 0.13 0.09 0.1 0.20 0.15 1.00

4 4 3 3 4 4 3

0.32 1 0.39 0.27 0.4 0.8 0.45 3.63

2 4 3 3 2 3 2.5

0.16 1 0.39 0.27 0.2 0.6 0.37 2.99

1 3 3 2.5 2.7 3 2.8

0.08 0.75 0.39 0.22 0.27 0.6 0.42 2.73

2 3 2.7 3 2.8 2 2.6

0.16 0.75 0.351 0.27 0.28 0.52 0.39 2.72

SPACE MATRIX

INTERNAL FS Gross profit Working capital High sales Liquidity ratio +6 +6 +5 +3 Average = 5 ES

EXTERNAL

Inflation rate Taxes Interest rate

-1 -2 -2

Average = -1.75

CA Brand name Customer loyalty Market leader Quality products -1 -1 -2 -2

IS Growth rate Technology Political relationships Rules & regulations +6 +4 +3 +5

Average = -1.5

Average = 4.5

ANSOFF MATRIX
PRODUCT MARKET EXISTING PRODUCT CATEGORY NEW PRODUCT CATEGORY

NEW MARKET

MARKET DEVELOPMENT

DIVERSIFICATION

EXISTING MARKET

MARKET PENETRATION

PRODUCT DEVELOPMENT

NESTLE FOLLOWS NEW PRODUCT DEVELOPMENT STRATEGY AS WELL AS DIVERSIFICATION Nestle lauched milo to serve existing customers and to gain new customers too.

IE MATRIX
STRONG 3.0 TO 4.0 MEDIUM 2.0 TO 2.99 WEAK 1.0 TO 1.99

EXCELLENT 3.0 TO 4.0

AVERAGE 2.0 TO 2.99

POOR 1.0 TO 1.99