New Product Development

Final Project Report

Submitted By:

Sohaib Ansar (27521)

Amina Butt (27071)

Javad Ali (26185)

Raees UL Hassan (26218)

Submitted To:

Madam Dr Mehwish J. Khan

Department of Business Administration

IQRAUNIVERSITY, ISLAMABAD CAMPUS

2018

1|P a g e
 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 Managers for Marketing, Sir Dr. Raja Mazhar
Hameed 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.

2|P a g e
GOOD FOOD, GOOD LIFE

3|P a g e
Table of Content

Section 1............................................................................................................................ 1
Executive Summary...........................................................................................................1
Introduction:.......................................................................................................................2
History:............................................................................................................................ 2
Company Mission and Vision.........................................................................................4
Hierarchical details of Marketing Department.................................................................4
Business Portfolio...........................................................................................................5
Chosen Brand:....................................................................................................................6
Milkpak.............................................................................................................................. 6
Brand Logo:....................................................................................................................6
Launching time:...............................................................................................................7
Slogan:............................................................................................................................ 7
Target Market:.................................................................................................................... 8
Geographic Segmentation:..............................................................................................8
Demographic Segmentation:...........................................................................................8
Behavioral Segmentation:...............................................................................................9
Customers Profile:.............................................................................................................. 9
Section-2.......................................................................................................................... 10
Brand positioning, Personality and Brand strategy:..........................................................10
Brand positioning:.........................................................................................................10
Brand personality:.........................................................................................................11
Current Marketing Mix:................................................................................................11
Products in the Marketing mix of Nestle:......................................................................11
Price in the Marketing mix of Nestle.............................................................................12
Marketing Strategies:....................................................................................................13
Section-3.......................................................................................................................... 15
Customer driven Marketing strategy:............................................................................15
BCG Matrix:..................................................................................................................15
Market penetration........................................................................................................17
Product development:....................................................................................................17
Market development:.....................................................................................................17
External and internal factors affecting the brand:..........................................................18
Section 4.......................................................................................................................... 21
Section-5 Survey Form:..................................................................................................23

4|P a g e
Section 1
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.

1|P a g e
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.

2|P a g e
1905-1938

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 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.
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’s improved 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-
flung and diverse as Nestlé. While progress since then has not been as encouraging, 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.

3|P a g e
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, newspaper 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.

4|P a g e
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

Milk Pak
Nido
Everyday

2. Chilled dairy

Nestle plain yogurt

Nestle Zeera Rita
Nestle Poodina Chatni

3. Bottled water

Nestle Mineral Water

4. Culinary and food

Maggi

5. Baby food

Cerelac

6. Breakfast cereal

Nestle coco Crunches

Nestle Milo
Nestle Corn Flakes

7. Coffee

Nestle Classic
Nestle Gold
Nestle 3 in 1

8. Confectionary

Nestle crunch
Nestle kit Kat

5|P a g e
Chosen Brand:

Milkpak.

Brand Logo:

Brand logo is a stick drawing of a home with MILK PAK written under it, which totally
indicates that every house have to drink pure milk that gives strength to them and having a
better immune system with it.

6|P a g e
Launching time:

Milkpak was therefore incorporated in January 1979 and began commercial production in
November 1981. In 1984 Milkpak started marketing the First 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:

“yhi hai Doodh ka khalis maza”

7|P a g e
Target Market:

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
Have an advantage over its competitors in this case of all-purpose milk. Nestle can use its current
supply chain to deliver the milk for its target markets. A large segment belongs to the northern and
rural areas of Pakistan will 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
Khyber Pakhtunkhwa

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.

Age Gender Social Class Occupation Income Range

4-20 Teen Ages Middle & N.A N.A

Upper

20-50 MALE Upper, Self-employed, 50,000-250,000

Upper Middle, Job Holders per month
Upper Lower,

20-50 MALE Middle Upper, Job Holders, 10,000-50,000 per

Middle Self-employed month

20-50 FEMALE Upper, Housewives, 50,000-250,000

Upper Middle, Job Holders per month
Upper Lower,

20-50 FEMALE Middle Upper, Housewives, 10,000-50,000 per

Middle Class Job Holders month

8|P a g e
Behavioral Segmentation:
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.

9|P a g e
Section-2
Brand positioning, Personality and 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 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.

10 | P a g e
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
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 strategy for 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

Current Marketing Mix:

Products in the Marketing mix of Nestle:

There are 4 different strategic business units within Nestle which are used to manage various food
products.
Beverages – One of the most known coffee brands Nescafe, belongs to the house of Nestle and is
one of the cash cows for Nestle. However, it is not the biggest cash cow. Nestle has a worldwide
distribution and has many different variants. In Pakistan, Nestle has also launched Nestea.

11 | P a g e
Prepared dishes and cooking aides – Nestle has a third products which comes into prepared
dishes and cooking aides. The major cash cow of Nestle lies in this segment, which
is Maggi Noodles. Probably one of the most widely sold ready to cook noodle brands is Maggi.
Maggi has a fantastic taste and quality. Thus, it was not a surprise, that Nestle expanded the
Maggi brand to create an umbrella of different products like Maggi pasta, Maggi sauce, Maggi
cubes etc. The Maggi range contributes vastly to the bottom line of Nestle.

Chocolates – Nestle has some popular chocolate products, most popular being Nestle Kit Kat,
Munch, Milky bar, Éclairs and Polo. The newly introduced Alpino is targeting the gifting segment
in response to various chocolates like milk and Bourneville by Cadbury. The chocolates segment of
Nestle is a star, where the competition is high and the expense is high but at the same time the
market size is huge as well.

Price in the Marketing mix of Nestle

The price is dependent on the market of each individual products. For example, Nescafe and Maggi
being the clear leaders are priced with higher margins for the company as compared to competition.
This is because the product quality is good enough and a bit of skimming price will not cause the
customer to switch brands.

Place in the Marketing mix of Nestle

Nestle follows the FMCG strategy of distribution which involves breaking the bulk. The
typical distribution strategy of Nestle is as follows.

Manufacturing >> C & F agent >> Distributors >> Retailers >> Consumer
Manufacturing >> Bulk buyers >> Consumer

These are the two different forms of distribution which Nestle has. It is typical of any FMCG
company. However, the Nestle channel is known to be strong with a good marketing and sales
network for channel distribution.
The challenge for Nestle is in the chocolate segment where it faces stiff competition from Cadbury
and hence selling the chocolates becomes difficult. Kit Kat might have its own brand positioning,
but it is not better than Dairy milk. Thus, converting retailers to sell Nestle instead of Cadbury is
the toughest task for Nestle. This is converted mainly through promotions.

Promotions in the Marketing mix of Nestle:

One of the most widely known tunes is the Nescafe tune. It was one of the best advertising
campaigns and was launched at least 2 decades back. However, that campaign brought Nescafe
strongly in the market.

On the other hand, Nestlé’s brand was pushed by the excellent quality of Maggi and the witty and
innovative campaigns of Maggi. Where Nescafe focuses on value and the good things in life,
Maggi focuses on moments you had with your Maggi. The recent campaign was completely
focused on your Maggi story, where people had to come out with various innovative ways that they
had their Maggi.
12 | P a g e
Promotions for other products too is done smartly. Kit Kat focuses on “Take a break” and has done
some good marketing for the same. Kit Kats website too is very innovative and shows nothing but
asks the visitor to take a break and have a Kit Kat. The major push expected of a FMCG company
is in sales promotions at the ground level. This is where Nestle really rocks. Nestle focuses on its
strength which is Maggi, Nescafe and Kit Kat which are the most promoted brands in the market on
ground level.

Marketing Strategies:
Marketing programs of Nestle Milkpak Ltd. are very influential one. 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.
Determining the promotional methods:

There are various promotional methods like personal selling, advertising, sales promotions,
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 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.

13 | P a g e
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.

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.

14 | P a g e
Section-3

Customer driven Marketing strategy:

Nestlé is an organization working globally. As the operations of the organization are extended 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 growth countries 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.

BCG Matrix:

15 | P a g e
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.

Cash Cows:

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
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.

Question marks:

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.

16 | P a g e
17 | P a g e
Market penetration:

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 Milk Pak 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.

Market development:
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.

18 | P a g e
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

Political factors:

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 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.

Economical factors:

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.

Social factors:

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

19 | P a g e
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.

Technological factors:

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.
Legal factors:

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.

Mission statement:

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.

Product classification:
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

20 | P a g e
yields minimal saving.

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 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.

21 | P a g e
Section 4
what do the customer consider when they buy Nestle Milk Pak?
There are four factors that they care about: Quality, Price, Age, Reference group and
Convenience.

1. The first one, in most cases, is quality. As its drink by all age groups in the
home so, it’s always want to offer good things to their family members:
good food, good clothes, good toys, and non-exceptionally good milk. A
healthy milk is the one which can strengthen the bones and fit the immune
systems of everybody who drinks the milk.

2. Price is also clearly a momentous factor because everyone at home drinks

the milk so price factor should be noticed in every moment of life. In such
developing markets like Asia, or starter markets like Africa, price even
becomes the most important criterion that consumers take into account when
they buy this type of products.

3. So children, individual and member in a group are the person who may
initiate the buying process. Usually young generation and families initiate
the buying process.so just like that reference group are the key factors that
influence others to buy the product.

4. Convenience by parents should also be mentioned as a factor that influences

customers to choice and it is the added value for the Milk. As we all know
that the milk available in the markets other than the tetra packs are so
unhygienic so it’s not safe to drink it. So parents or other group members
feel convenient to buy milk that is hygienic and safe to drink.

5. As milk is drink by all age group members in the house so, Nestle launch
Milkpak while realizing that the consumers wants such milk that is 100%
pure, UHT and hygienic Milk.

In case of Nestle Milk Pak, commercial ads played a huge role in convincing
customers. TV Commercials featuring young active couples who preferred Nestle
Milk to other milk were a huge success. The product packaging showcasing an
hour glass figure and catchy tagline added to the information pool.

In case of Nestle Milk Pak, the brand image clearly gives it an edge when
compared to the alternatives. Plus Nestlé’s positioning of the milk as a
nonfattening agent as opposed to the popular belief that it is a fattening one,
appealed to the milk-loving Pakistanis.

22 | P a g e
In case of Nestle Milk Pak, a first time buyer will identify with the brand name and
also appreciate the nutritional attributes printed on the packaging. This will help
him decide in favor of Nestle.

23 | P a g e
Section-5
Survey Form:

1. What is your basic perception about Nestle Milk Pak?

 Good, I am a regular User

 I prefer other brands
 I never hear about it

2. How was your past experience with Milk Pak?

 Very good
 Normal
 Worst

3. What are the attributes you consider while buying tetra pack milk from the
market?

 Quality
 Price
 Or Both

4. How important is name Brand when choosing for Milk?

 Not Important
 Sometimes it matters
 Most Important

5. What Milk brand do you buy most often?

 Nestle Milk Pak

 Olpers
 Anhaar
 Prema Milk
 Nurpur

6. What Attributes of Milk Pak has made you stick to it?

 Goof Quality
 Brand Loyalty
 Easily Available

24 | P a g e
7. Do you think “Milk Pak” Is good for you and your family’s health?

 Not Healthy
 Healthy
 Not that Healthy But better than others

8. In case you are satisfies with “Milk Pak” how likely are you t recommend
this to a fellow parents?

 Not recommended
 Slightly recommended
 Highly recommended

9. In case you are not satisfied with the “Milk Pak” what are the points discourage you the most?

10.When you buy Milk Pak, what is your preferable unit quantity in the
package?
(Pack of 250ml, 500ml, 1000ml Milk)

 250
 500
 1000

25 | P a g e
Survey Report:

Q
No. Description Results
1 Perception Good, I am a regular User
2 Experience Normal
3 Attributes Quality
4 Brand Importance Sometimes it matters
5 Milk Brand Nestle Milk Pak
6 Why Choose Nestle Easily Available
7 Good For Health Not that Healthy But better than others
8 Recommended Highly recommended
9 Not Satisfied  
10 Unit Quantity Package 1000 ml

26 | P a g e
In my survey that we conducted a survey based on above mentioned questions, we found out that
people are health conscious and for their health they don’t compromise on low end product. So,
mothers give preference on quality product rather than price conscious. In the survey report
attached above people chooses Milk pak because it’s easily available in the markets.

Summing up the answers, I can conclude that Milk pak is a premium product in Pakistan, and
hence the consumers are ready to pay a premium price for it. Even if Milk pak increased its price
by a few rupees, the demand quantity would not reduce to a large extent. Milk pak has satisfied
its customers. Also, as the parents are considerate about their children, they like to buy top of the
line products, hence they do not compromise on the quality.

27 | P a g e