1. MARKET
Markets may be any of a variety of different systems
Markets vary in size, range, geographic scale, location, types and variety of human communities
Market is any structure that allows buyers and sellers to exchange any type of goods, services and
information
Market facilitates trade and enables the distribution and allocation of resources in a society
Markets allow any tradable item to be evaluated and priced
MARKET DEMOGAPHICS
Population: 180,000,000
Growth rate: 1.828%
Birth rate: 27.74 births/1,000 population
Death rate: 8 deaths/1,000 population
Net migration rate: -1.24 migrant(s)/1,000 populations
0-14 years: 40% (male 33,293,428; female 31,434,314)
15-64 years: 56.9% (male 48,214,298; female 46,062,933)
65 years and over: 4.1% (male 3,256,065; female 3,542,522)
INDUSTRY ANALYSIS
POPULATION 180000000
RURAL 116916480
URBAN 63083520
PEOPLE WITHOUT WATER 44%

2. BOTTLE WATER USAGE 9%
PEOPLE WITHOUT BOTTLE WATER 91728000
TOTAL TARGET MARKET 9072000
MISSION STATEMENT
Nestlé is dedicated to providing the best foods to people throughout their day, throughout their lives,
throughout the world. With our unique experience of anticipating consumers' needs and creating
solutions, Nestlé contributes to your well-being and enhances your quality of life.
VISION STATEMENT
We envision Nestlé to grow in the shortest
Possible time into the number one food company in
Pakistan with the unique ability to meet the needs of consumers of every age group from infancy to
old age,
For nutrition and pleasure, through development of a large
Variety of food categories of the highest quality
We envision the company to develop an extremely
Motivated and professionally trained workforce, which
Would drive growth through innovation and renovation

3. We aspire, as a respected corporate citizen, to continue
Playing our due role in the social and environmental
Sectors of the country
ORGANIZATION PORTFOLIO
ESTABLISHMENT:
Nestlé was founded in 1866 by Henri Nestlé with headquarters in Vevey, Switzerland. It has employed
around 250,000 people and has factories or operations in almost every country in the world.
COMPANY TYPE:
It is one of the world's biggest food and Beverage Companies.
BRANDS:
Nestle offers a variety of brands of which the most well known are Nescafe, Nestlé Kit Kat, Nestlé juices
and Nestlé bottled waters.
Nestlé's existing products grow through innovation and renovation while maintaining a balance in
geographic activities and product lines.
The Company's priority is to bring the best and most relevant products to people, wherever they are,
whatever their needs, throughout their lives.
BRAND PORTFOLIO
In 1992, Nestlé was the first company to dare to launch a mineral water, Valvert. Today Nestlé Water is
established in 130 countries and markets about 70 different brands.
In 1998, for the first time in its history, Nestlé associated its name with bottled water "Nestlé Pure Life".
The brand was launched in Pakistan and soon appeared in Brazil, followed by Argentina, Thailand, the
Philippines, China, and Mexico in 2000. In 2001, India, Jordan, and Lebanon followed, and in 2002,
Egypt, Uzbekistan and the United States.

4. Today the Nestle Pure Life brand is present in 20 countries around the world, across all continents - Asia,
Near East, South and North America and Europe.
Wherever it is to be found around the world, Nestle PURE LIFE answers some crucial consumer needs,
focused on three core pillars: Trust, Quality and Service.
Nestle PURE LIFE offers an ideal balance between a healthy supply of minerals and a pleasant, refreshing
taste, making it suitable for the whole family. It contains essential minerals such as:
Calcium: necessary for building strong bones and teeth,
Magnesium: necessary for muscle contraction and transmission of pulses.
COMPANY FROM FOUNDATION TILL NOW
1866 Company's foundation
1905 Merger between Nestlé and Anglo-Swiss Condensed Milk Company
1929 Merger with Peter-Cailler-Kohler Chocolate Suisse's S.A.
1947 Merger with Alimentana S.A. (Maggi)
1971 Merger with Ursina-Franck (Switzerland)
1985 Acquisition of Carnation (USA)
1988 Acquisition of Buitoni-Perugina (Italy)

5. 1988 Acquisition of Rowntree (GB)
1992 Acquisition of Perrier (France)
Nestlé acquires Victor Schmidt & Söhne, Austria's oldest producer of confectionery, including the
1995
famous 'Mozartkugeln'.
Nestlé, through the Perrier Vittel Group, expands its mineral water activities with the outright
1997
acquisition of San Pellegrino.
Nestlé acquires Spillers Petfoods of the UK and strengthens position in the petfood business
1998
which began in 1985 with the acquisition of the Carnation Friskies brand.
Divestiture of Findus brand (except in Switzerland and Italy) and parts of Nestlé's frozen food
1999 business in Europe.
Divestiture of Hills Bros, MJB and Chase & Sanborn roast and ground coffee brands (USA).
2000
Acquisition of Power Bar.
NESTLE'S HISTORY AND INNVATIONS:
The key factor which drove the early history of the enterprise that would become The Nestlé Company
was Henri Nestlé's search for a healthy, economical alternative to breastfeeding for mothers who could
not feed their infants at the breast.
In the mid-1860s Nestlé, a trained pharmacist, began experimenting with various combinations of cow's
milk, wheat flour and sugar in an attempt to develop an alternative source of infant nutrition for
mothers who were unable to breast feed. His ultimate goal was to help combat the problem of infant
mortality due to malnutrition. He called the new product Farine Lactée Henri Nestlé.

6. Nestlé's first customer was a premature infant who could tolerate neither his mother's milk nor any of
the conventional substitutes, and had been given up for lost by local physicians. People quickly
recognized the value of the new product, after Nestlé's new formula saved the child's life and within a
few years, Farine Lactée Nestlé was being marketed in much of Europe.
Henri Nestlé also showed early understanding of the power of branding. He had adopted his own coat of
arms as a trademark; in Swiss German, Nestlé means 'little nest'. One of his agents suggested that the
nest could be exchanged for the white cross of the Swiss flag. His response was firm: "I regret that I
cannot allow you to change my nest for a Swiss cross .... I cannot have a different trademark in every
country; anyone can make use of a cross, but no-one else may use my coat of arms."
Meanwhile, the Anglo-Swiss Condensed Milk Company, founded in 1866 by Americans Charles and
George Page, broadened its product line in the mid-1870s to include cheese and infant formulas. The
Nestlé Company, which had been purchased from Henri Nestlé by Jules Monnerat in 1874, responded by
launching a condensed milk product of its own. The two companies remained fierce competitors until
their merger in 1905.
Some other important firsts occurred during those years. In 1875 Vevey resident Daniel Peter figured
out how to combine milk and cocoa powder to create milkchocolate. Peter, a friend and neighbor of
Henri Nestlé, started a company that quickly became the world's leading maker of chocolate and later
merged with Nestlé.
In 1882 Swiss miller Julius Maggi created a food product utilizing legumes that was quick to prepare and
easy to digest. His instant pea and bean soups helped launch Maggi & Company. By the turn of the
century, his company was producing not only powdered soups, but bouillon cubes, and sauces and
flavorings.
First came infant and milk nutrition
Innovation and an entrepreneurial spirit have been Nestlé characteristics from the start.
In 1886, while the Page brothers in Cham were building Europe's first condensed milk factory, for the
Anglo-Swiss Condensed Milk Co., Henri Nestlé, in Vevey, was developing his infant cereal "Lactous Farina
Nestlé "launched in 1867.
The two companies merged in 1905 to become the "Nestlé & Anglo-Swiss Condensed Milk Co.". The

7. former had developed a successful long-life product from fresh milk, a highly perishable raw material,
whilst Henri Nestlé had achieved international acclaim due to the remarkable qualities of his invention.
Given the highly infant mortality rate, due mainly to the lack of an appropriate breast-milk substitute,
his infant cereal respond to a real need.
His name and the Nestlé symbol (Nestlé means "little nest" in German) were guarantee of the consistent
quality of his product, the result of painstaking scientific research.
Then came product diversification
Contacts with other leading companies that have innovative ideas led to acquisitions and
diversifications.
The company expanded in 1929 through the acquisition of the,
Cailler
Peter and
Kohler chocolate companies,
Followed in 1947 by the Maggi group and its culinary products
Thus Nestlé became the heir to inventions such as Daniel Peter's milk chocolate (1875) and Julius
Maggi's vegetable-based soups (1884) and stock cubes (1908).
Nestlé accumulated knowledge, as well as the perseverance and competence of scientists like Max
Morenthaler, made possible the huge success of the Nescafe launch in 1938.
Subsequent acquisitions opened doors to new areas, such as
Preserves (Crosse & Blackwell 1960),

8. Frozen foods (Findus, 1962),
Mineral water (Vittel, 1969)
Pet care (Carnation, 1985).
Others reinforced the company's position in established areas, for example,
Italian cuisine (Buitoni, 1988),
Chocolate and confectionery (Rowntree, 1988)
Performance foods (PowerBar, 2000).
At the same time, reseat at Nestlé resulted in the development of new products such as
Milo (1934),
Nestea (1944),
Nesquick (1948),
NAN (1962),
Yes (1979),
Nespresso (1986),
LC (1994) and

9. Nestlé Pure Life (1998).
Existing products such as Nescafe, Maggi culinary products or the various dairy products have been
constantly improved and adapted to current consumer life-styles.
Today and tomorrow a company that cares about consumers al around the globe
Today, Nestlé is the world's leading food company. Its international R&D network supports the
products made in 479 factories in 81 countries.
Being a company dedicated from the start to food, Nestlé remains sensitive to culinary and eating
habits, and responds to specific nutritional problems, whilst also setting and matching new trends such
as growing out-of-home consumption.
CONTRIBUTION TO OTHER SECTOR
Social
In the social sector, the company has created over 1200 permanent job opportunities for the skilled,
unskilled and professional manpower, apart from hundreds of contractual jobs. It has also played a
remarkable role in expansion and vitalization of the dairy and livestock sector.
Environment
Another key area where the company is proud to make a contribution in the environment is by making
available the processed and packaged dairy.
Registered & Corporate Office 308 Upper Mall, Lahore

10. PABX : (042) 5757082-95
Fax : (042) 5711820
Sheikhupura
29th Kilometer, Lahore- Sheikhupura Road
Sheikhupura, Punjab, Pakistan
Kabirwala
Factories
Khanewal – Kabirwala Road, Kabirwala
District Khanewal, Punjab, Pakistan
Phone : (06512) 411433-36
Fax : (06512) 411432
Auditors A.F. Ferguson & Co. (Chartered Accountants)
Legal Advisors Cheema & Ibrahim (Advocates)
ABN AMRO Bank
Bankers
Bank of Tokyo-Mitsubishi Ltd.

11. Citibank N.A
Credit Agricole Indousuez
Deutsche Bank A.G.
Habib Bank Ltd.
Muslim Commercial Bank Ltd.
Standard Chartered Bank.
REGIONAL SALES OFFICES
F-77/1, Block 7,
Clifton, KDA Scheme 5,
Karachi, Sind, Pakistan.
Karachi
Phone : (021) 5833935-6
Fax : (021) 5833937
178, Block C, Unit 2 Latifabad,
Hyderabad, Sind, Pakistan.
Hyderabad
Phone : (0221) 860403
Fax : (0221) 863202
29-b, Main Gulberg,
Lahore Lahore, Punjab, Pakistan
Phone : (042) 5754335-6, 5752582

12. Fax : (042) 5761491
Surij Miani Road, Chungi No. 1,
Multan, Punjab, Pakistan.
Multan
Phone : (061) 515061
Fax : (061) 515057
Al Haq Plaza, 271-A,
Small D Ground, People's Colony
Faisalabad, Punjab, Pakistan
Faisalabad
Phone : (041) 546993, 734538
Fax : (041) 543538
23, D.C. Road.
Gujranwala, Punjab, Pakistan.
Gujranwala
Phone : (0431) 256320
Fax : (0431) 256320
201, Block B, 2nd Floor
City Tower, Jamrud Road,
Peshawar, N.W.F.P, Pakistan
Peshawar
Phone : (091) 840859, 842415, 43901
Fax : (091) 45516

13. 63 B – D, Chaman Housing Scheme,
Opposite Askari Park
Quetta, Baluchistan, Pakistan.
Quetta
Phone : (081) 834887
Fax : (081) 822297
74-W, Yaseen Plaza, 1st Floor, Blue Area,
Islamabad, Pakistan
Islamabad
Phone : (051) 2271874-5, 2824328
Fax : (051) 2821899
RATIO ANALYSIS is useful essentially for:
Investors
Assessment of earnings and dividend prospects.
Growth in economic value of investments with respect to the risks undertaken.
Bankers/Creditors concern
Assessment of the ability of the business to service its debt obligations.
Debt coverage.
Proper utilization of assets financed.
Government's concern
Evaluation of the economic contributions of the business entity.
Determination of the entity's financial strength to carry social and developmental programs.

14. THE ANALYSIS
The financial ratios discussed here are those which are derived simply and directly from financial statements. These ratios are used in analyzing the financial
statements in ordinary course of business activity. The ratio analysis can be divided into three broad categories:
The Solvency Ratios.
The Efficiency Ratios.
The Profitability Ratios.
Competitor Analysis
• NESTLE
• Aquafina
• Sufi
• Kinley
• Other
• TOTAL SHARE
• 9072000
• TOTAL SHARE OF COMPETITORS
– NESTLE 2903040

15. – AQUAFINA 1995849
– SUFI 453600
– KINLEY 1451520
– OTHER 2268000
WATER
NESTLÉ Pure Life – PET Bottles
The year 2001 saw the successful completion of three years of outstanding business for NESTLÉ Pure Life – PET Bottles of 0.5 and 1.5 liters. The exceptional brand
success was the result of expanding national distribution and an increasingly loyal customer base. The brand has revolutionized the Pakistani market by tapping the
real consumer need for pure, healthy, and safe water and has successfully dominated a key strategic business
NESTLÉ Pure Life – Home & Office Service
In 2000, NESTLÉ Pure Life established a successful Home and Office (H&O) delivery service in Lahore, which has substantially grown ever since and has come to
dominate the 5- gallon market. Successful marketing and sales strategies offer greater convenience and better value to the consumers. The brand is poised for
strong growth in future.

16. AVA & FONTALIA
To expand its H&O water delivery business countrywide, Nestlé acquired major share holdings in both these businesses in 2001. While AVA is an important national
player in the branded bottled water category, both in PET and H&O services
NESTLÉ PURE LIFE & BULK WATER
The launch of Nestlé Pure life in December 1998 was a truly historic event. This marks Nestlé Milkpak's entry into the country's fastest growing water market. At the
same time Pakistan became the first country where Nestlé launched this new worldwide brand. It has been launched in 11 markets internationally with its lead and
best performing market being in Pakistan. The reporting of Nestlé Pure life is not directly under the Nestlé headquarters at Vevey, Switzerland. Rather all the water
brands at Nestlé have to report to Perrier Vittel, the pioneer and lead French Brand in the water market. Other than that, all the research concerning the contents is
carried out at the Research Center at Vevey.
SEGMENTATION STRATEGY
• Psychographic Segmentation
• Demographic Segmentation
• Geographic Segmentation
• Behavioral segmentation
TARGET MARKET
• Targeting Strategy Of Nestle Pure Life Is Differentiated Marketing
• Nestle Pure Life Targets Both Genders
• Targets The Upper And Middle Class People Who Are Health Conscious
• Tourists Are Also The Target Market Of Nestle Pure Life

17. POSITIONING
• Newly Drinking Water With Safety And Security
• Pure Water Pure Relationship
• Safe And Healthy Drinking Water
• Public Awareness Message
INDUSTRIAL SWOT ANALYSIS
Strengths
– the lifestyle of the people is changing
– DEMAND is increasing day by day in the bottle Water
Weaknesses
– the lack of awareness and the poverty
– the lack of availability in the remote areas is also the strong reason
Opportunities
– people are becoming more health conscious
Threats
– Low Entry Barrier
– Economical Uncertainty
SWOT ANALYSIS
Strengths:
• High Quality Obtained By The Usage Of A Special Production Process.

18. • Own Industrial Laboratories That Perform Constant Control For Physical-chemical And Bacteriological Parameters.
• Daily Sensor Water Analysis for Flavor, Color And Odor.
• Great And Neutral Taste Which Suits All The Family
• Safety And Purity From The Source To The Consumer
• Produced Locally, Close To The Consumer.
Weakness:
• Nestle Pure Life Is Relatively Expensive Than Other Brands.
Opportunities:
• Water Is An Essential Part Of Life And Everyone Prefers To Drink Safe And Healthy Water.
• Nestle Is A Trusted Brand For Providing Good Quality Products.
Threats:
• Tough Competition From Aquafina And Kinley.
MARKETING MIX
1-PRODUCT:
Nestlé Pure Life is drinking water that has been treated and rematerialized using a standardized industrial process to ensure purity and quality. Pure and Safe Nestle
PURE LIFE refills your body with water to maintain a good level of hydration. It provides a balanced mineral formula (on average 150-170 mg per liter), contributing
to daily mineral requirements.
Structure of water
Concentration,
Mineral Component
not more

19. General mineralization (mg/l) 220 mg/l
Calcium 40 mg/l
Magnesium 15 mg/l
Potassium 20 mg/l
Bicarbonates 60 mg/l
Fluorides 0,6 mg/l
Hardness Mg-eq/l 3
PRODUCT TYPE:
It is a consumer product and a convenience good.
PRODUCT ATTRIBUTES:
Nestle Pure Life is a pure, safe and healthy, colorless and odorless drinking water with a pleasant taste.
BRAND NAME:
Nestle Pure Life.
BRAND POSITIONING:
Premium drinking water
BRAND IMAGE:
Safe and healthy water
BRAND EXTENSION:
Nestle is soon introducing flavored water in lemon, orange, raspberry and strawberry flavors.

20. PACKAGING:
Nestlé PURE LIFE is available in a wide variety of packaging formats to suit all consumer needs and consumption occasions. Packaging is innovative to meet the
individual needs of consumer all over the world.
The range of formats extends from the individual bottle for on-the-go consumption (0.33l to 0.5l), to the family size bottle (1.5l) and on to larger formats of 5 gallons
(18.9l) for in-home and office usage.
Nestle PURE LIFE 18.9-liter bottles have a protective cover, so that the consumer can immediately define, that the product was delivered from the factory. Its
proprietary design equally protects the brand from counterfeiting.
Nestlé Pure Life's originality lay in the use of an all-new plastic, P.E.T. (polyethylene teraphthalate), which is stronger and more elastic than the PVC. Besides, P.E.T.
is recyclable.
Nestlé PURE LIFE is bottled when possible in the country, or at least in the region where it is sold, combining the benefit of a local production and the strength of a
worldwide brand.
LABEL:
The label provides information like quantity, mineral contents, logo, manufacturing date and best before date. Consumer service number is mentioned and stamp of
PSQCA with license number is also mentioned.
2-PROMOTION:
Nestle Waters Coolers has been a part of Nestle Waters since 2003 and represents Nestle Pure Life brand. Service quality has always been the main driver of HOD
business. They are using television and radio advertisements in electronic media. In print media they are using billboards, newspapers, pole signs and posters.
In big departmental store they have display corner in which Nestle Pure Life is refrigerated. Moppies are also used for advertisement in these stores.
In summers direct marketing is used for promotion by providing cool points of Nestle Pure Life where chilled Nestle Pure Life is available for instant drinking.
3-PLACE:
Nestle Pure Life is a convenience good and is frequently used therefore it has been placed on all big and small stores to make it available everywhere. The type of
placement used for nestle pure life is spot exchange.
4-PRICE:
Nestle pure life is following brand pricing through which it provides functional and psychological satisfaction to its target customer. The pricing strategy of Nestle
Pure Life is market skimming.

21. Prices of Nestle Pure Life are relatively higher than their competitors. Market prices of individual consumables (0.33l to 0.5l) are Rs.10 and Rs.13. The price of family
size bottle (1.5l) is Rs.24 and of large bottles of 5 gallons (18.9l) is Rs.130
PRICE
PRODUCT
PROMOTION
PLACE
MARKETING MIX
STRATEGIES FOR CREATING COMPETITIVE ADVANTAGE
DIFFERENTIATION STRATEGY:
They have developed a very visible image of their water that it is safe and healthy and is "PURE LIFE" in true sense.
OVERALL EXCELLENCE STRATEGY:
Nestle is a trusted brand and its products are consider to best and of very high quality world wide. This is a very important competitive advantage of Nestle Pure
Life.
Introduction Growth Maturity Decline
Characteristics
Loyal
Customers Innovators Mass Market Mass Market
Customers
Competition Little if any Increasing Intense Decreasing
Low levels, then Slow/no annual
Sales Rapid Growth Declining
rising growth
Strong, then at
Profits None Declining annually Low/none
peak
Marketing

22. Implications
Market Market
Overall Strategy Defensive Efficiency
Development Penetration
Costs High per unit Declining Stable or increasing Low
Product Strategy Undifferentiated Improved items Differentiated Pruned Line
Pricing Strategy Most Likely high Lower over time Lowest Increasing
Distribution Strategy Scattered Intensive Intensive Selective
Promotion Strategy Category awareness Brand Preference Brand Loyalty Reinforcement
SUGGESTIONS
• They should introduce 0.20l water glass of Nestle Pure Life which should be provide on cool points in summer.
• They should set the price of their product in accordance with their competitor's price.
• Nestle Pure Life should communicate the benefits of drinking it.
• Now a day, they are not advertising properly therefore they should focus on more advertisement so that they could create strong brand loyalty among customers.
• They should introduce 0.20l water glass of Nestle Pure Life which should be provide on cool points in summer.
• They should set the price of their product in accordance with their competitor's price.
• Nestle Pure Life should communicate the benefits of drinking it.
• Now a day, they are not advertising properly therefore they should focus on more advertisement so that they could create strong brand loyalty among customers.