You are on page 1of 15

ASSIGNMENT ON

MARKETING PLAN

Prepared by:

Executive Summary
Pakistan is an agricultural country. According to Ministry of Food, Agriculture and livestock, agriculture accounts for 20.9 percent of the GDP. Dairy industry contributes 49% to the agriculture value and 11% to the GDP. Annual production of milk is 35.25 Billion liters in the country; But the Processed milk is only 4% of the total production. Like other countries Dairy is not a dedicated profession of the people, farmers is associated with dairy and agriculture at the same time, Profitability for the farmers is very less. Infrastructure is not developed, cooling tanks and other facilities are not available, and the large part of milk production is wasted. There is a multi-hierarchal distribution system of the milk; the farmers are not getting reward of their work. All these factors are making this industry unattractive for the farmers and the industry is no developing up to the mark. Only 4% of the total milk production is processed and used in urban areas of the country. According to Pakistan Dairy Development Authority Only 0.52 Billion liters UHT and 0.5 Billion liters pasteurized milk is available in the country. In urban areas 4.7 Billion liters milk is provide by Gawalas. 1.27 Billion liters processed milk is sold by the milk shops. There is a potential of about 5 billion liters of milk sold in the urban areas. In urban areas people are more health and quality conscious, the income level of urban population is also good so this segment has potential for UHT and Pasteurized milk.

Nestle is the world largest food company and nestle Pure milk is Nestls famous UHT milk brand. Nestle Pure milk has south Asias biggest Plant at Kabirwala. It is targeting upper and middle class. It is differentiating its brand by adding Iron and Vitamin C.

Nestle
Nestle is the largest food company in the world. It is present in all five continents, has an annual turnover of 74.7 billion Swiss Frances. There are 509 factories are running in 83 countries, having 231,000 employs.

History Of Nestle
Our story begins in 1867, when Henry Nestle developed a baby formula that saved childs 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. In 1979, Milkpak Ltd. Is founded by Syed Baber Ali. It manufactures UHT Milk, Cream and Butter as well as fruit Juices.

Company Vision
Vision of Nestle Pure Milk is to expand business according to the increasing demand of market. As per our company vision in 2020 production capacity of all plants working in Pakistan is being increased. So extension of Kabirwala Plant is the example of our company vision.

Company Mission
At Nestle, we believe that research can help us to make better food, so that people live a better life. Good food is the primary source of good health, so we are trying to make good food. To provide fresh and pure products to the customers, we introduced (SHE) Safety, Health and environment policy to protect health of our employs and keep clean our surrounding environment.

Products
Bottled water Baby food Dairy products Breakfast cereals Nutrition Prepared food

Nestle Pure milk


Dhood ki Qudrati Ghizayat Pure, nutritious goodness of Milk
Pure, rich and delicious Nestle Pure milk standardized (UHT) benefits from Nestles expertise in bringing you the best life has to offer and benefits from 140 years of consumers trust. Encourage your family to exercise regularly, eat a healthy, well balanced diet and drink pure, nutritious Milk for good health. Milk is a must drink for your children as it is a rich source of calcium that helps in the growth and development of strong bones and teeth. A 250ml Nestle Pure milk Glass consist of followings: 27-30% of calcium, 15-18% of protein, 31-34% of phosphorous,6-9% of Vitamin A and 160-169 k Cal of energy, as recommended dietary allowance by national Academy of Science (USA).

The contents of the above said products have the following fruitful benefits for health improvement of Human body. Calcium It is important for the growth of strong bones and teeth. Protein It is necessary for cell and tissue growth. Phosphorous It is important for healthy bones and teeth. Vitamin A It improves vision and keeps skin and hair healthy

Competitors
The main competitors of Nestle pure Milk are: Haleeb Milk Olpers milk Good Milk Dairy Queen Milk

Demographics of Pakistan
Pakistan is a small country with limited resources. But the population of Pakistan is 180,000,000. Pakistan has 6th number in population in the world.

Population and Growth

,000 population (2007 EST.) -1.24 migrant(s)/1,000 populations (2007 est.) Age Structure -14 years: 40% (male 33,293,428; female 31,434,314) -64 years: 56.9% (male 48,214,298; female 46,062,933)

-64 years: 1.05 male(s)/female

ale(s)/female (2007 EST.)

Literacy: Definition: Over the age of 15 and can read and write.

Population of Major Cities of Pakistan Cities Karachi Lahore Rawalpindi Faisalabad Multan Gujranwala Hyderabad Islamabad Peshawar Population 15 Million 9 Million 3 Million 2.6 Million 1.6 Million 1.3 Million 1.3 Million 1.3 Million 1.0 Million

Pakistan Milk Market/Industrial Analysis

of livelihood for 66 percent of the countrys population living in rural areas. Growth in the agriculture sector registered a sharp recovery in 2006-07 and grew by 5%. Pakistan is the 5th largest milk producing country in the world. An estimated 33.25 billion liters of annual milk is produced. Approximately 50 million animals managed by 8 million farming households. Contribution of the livestock sector to Pakistans GDP is at 11% while the processed milk sector contributes about 0.43 per cent. The milk economy represents 27.7%2 of the total value of the agriculture sector.

Total Target Market Of Milk Annual Production Of Milk (Billion Liters) Total market of Gawala (96%) Billion liters Total EXISTING market of processed milk (4%) Billion Liters

180000000

33.25 31.92 1.33

Need Analysis (UHT and Loose Milk) Predicted Supply of Fresh and UHT Milk
Supply of fresh milk Year (Million liters) 2007-08 2008-09 33805.10 35495.25 Supply of UHT milk (Million liters) 557.72 648.43

Projections of Fresh Milk Production and Consumption Up to 2008 09


Annual Production Years (million liters) 2008-09 2009-10 35495.25 37669.75 Annual Consumption (million liters) 36361.25 38188.92

About 1.02 billion liters milk is imported.

Projections of UHT Milk Production and Consumption up to 2008 09


Annual Production Year (million liters) 2008-09 2009-10 648.43 753.89 (million liters) 353.71 372.05 Annual Consumption

Industry SWOT Analysis


Strenghts: Pakistan dairy industry is the Worlds fifth largest industry Pakistan Dairy Industry is Cheaper than Austrai, America and other deveolped countries. Farmers are engaged in agriculture and dairy at the same time. By-product of Agriculture is used in Dairy By-product of dairy is used in agriculture.

Weaknesses: Poor profitability for farmers. Lack of contact for farmers to the market mechanism. Poor dairy infrastructure in rural areas. Lack of education among the farmers is making it difficult to change farm and dairy management systems. Lack of knowledge about optimal feed. Lack of a cold chain to protect milk quality. Lack of access to well trained support service staff such as Veterinarians. Despite the huge volume of milk produced in Pakistan, processors find it hard to procure sufficient milk to meet future consumer demand. Increasing demand for imported products. The product range offered to consumers is not well developed. Production of milk falls to 55% of peak production at its lowest point in mid-June. The demand increases 60% during June compared to December when the milk supply is ample. Opportunities: There is an opportunity for companies to introduce value-added products like shrikhand, ice creams, paneer, khoya, flavored milk, dairy sweets, etc. There is a phenomenal scope for innovations in product development, packaging and presentation. Threats: Very low quality milk is provided by the milkmen to dairy farms which is a very big threat for the entire market. The shortage of milk providing animals is also a threat for entire milk industry. The study of this SWOT analysis shows that the strengths and opportunities far outweigh weaknesses and threats. Strengths and opportunities are fundamental and weaknesses and threats are transitory. Any investment idea can do well only when you

have three essential ingredients: entrepreneurship (the ability to take risks), innovative approach (in product lines and marketing) and values (of quality/ethics).

The Indian dairy industry, following its deli censing, has been attracting a large number of entrepreneurs. Their success in dairying depends on factors such as an efficient yet economical procurement network, hygienic and cost-effective processing facilities and innovativeness in the market place. All that needs to be done is: to innovate, convert products into commercially exploitable ideas. All the time keep reminding yourself: Benjamin Franklin discovered electricity, but it was the man who invented the meter that really made the money.

Market Segmentaion of Nestle Pure Milk Geographic Segmentation:


Pure milk has segmented the market on the basis of Geographic segmentation and its target market is major populated cities of Pakistan

Demographic Segmentation:
Nestle Pure milk is also segementing the market on the basis of Income level of the people. Three Income level has been defined; Higher, middle and lower income classes.

Targeting
Urabn areas of the country Upper and Middle income class

Situation Analysis
Awareness:
Due to strong brand positioning and effective advertising, Pure milk has highest awareness level. Brand Pure milk Haleeb Olpers Dairy Queen Good Milk Nurpur Awareness (%) 43 38 9 7 2 1

Market Share (%)


Good Milk Pure milk Dairy Queen Haleeb Olpers Nur Pur Others 1 45 9 22 17 4 2

The table shows that Pure milk has the highest market share due to its consistent quality.

Market Trends
The growth of processed milk is increasing by 20% annually People are getting more quality and health conscious with the passage of time Due to impurities of Gawala milk, people are attracting towards processed milk

Market Potential
At an average, a Pakistani consumer spends 42 % of income on food Consumer often prefer branded food items for both quality and status reasons Per capita real GDP has increased at an average of 5.6 % per annum during the last three years This increase has led to a rise in average income of people and an increase in consumer spending.

SWOT Analysis (Nestle Pure milk )


Strengths:
Strong Brand image: Nestle has been serving the Pakistani consumers since 1988, and it has built a strong brand image due to its quality products. Quality product: Nestle Pure milk is known as the best UHT milk in Pakistan due to consistency in quality. Solid Financial position: Nestle Pure milk annual turnover is Rs.30 Billion which provides it a financial edge over its competitors. Strong supply chain network: Nestle collects Milk directly form the farmers instead of relying on the contractors. And it distribution is also very strong. In this way it has a complete control over its supply chain.

Qualified work force Commitment to High Quality Products Focus on research and development

Weaknesses:
The target market of Nestle Pure milk is upper middle and high class because lower middle and poor class cannot afford to buy UHT milk due to its premium price. This is the only weakness of Pure milk.

Opportunities:
Estimations of UHT Milk Production and Consumption up to 2008 09 Annual Production Year (million liters) 2008-09 2009-10 648.43 753.89 (million liters) 353.71 372.05 Annual Consumption

The projected values of UHT Milk consumption and production are obtained from the ARIMA model.

More people are coming towards processed milk because loose milk is dangerous for health due to a lot of contamination. Growth of processed milk is increasing with 20% annually so Nestle Pure milk has the opportunity to capture a large share of market.

Threats:
Two main competitors Haleeb and Olpers are main threat for Milkpak especially the Olpers is growing very fast. Inflation is getting higher and higher so the purchasing power of the people is decreasing day by day. There is no entry barrier for new entrants as the Olpers has come in the market.

Marketing Mix
Product:
Quality Product Nestle Pure milk has the largest market share due to its consistent quality. Product Style and logo Nestle Pure milk is available in different product range and stylish packaging. Product Lifecycle Nestle Pure milk has been in the market for a very ling time and it is at maturity stage.

Price:
Competition Based Pricing Pure milk is holding a large share in the market due to its quality at same price as compared to competitors.

Placement:
Distribution Channels: Pure milk is not sold directly to consumers and the complete distribution process is followed. It uses indirect channels for distribution like: ManufacturerDistributorWholesalerRetailerConsumer

Promotion:
Focusing on health conscious people in their advertisement.

You might also like