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SUBMITTED TO:Sir.Waqar-ul-Qayum

SUBMITTED BY:

Syed Joan Raza Naqvi BBA-02103-224

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DedicationDedicationWe dedicate our all efforts to our affectionate, loving and

kind parents whose spiritual inspiration and mystical guidance are

always with us

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This is not a traditional research project. It is basically the result of brain

storming of our group members. Keeping in mind the target we have to select a

company and apply all the sales management techniques. While doing this project

we worked very hard and tried our best to use our efforts.

Upon successful completion, we feel it our moral duty to acknowledge the

efforts of other people who helped us in the completion of the project. Firstly we are

grateful to our highly motivated and devoted teacher Sir Waqar-ul-Qayum who

helped us at every stage. Whenever we felt the problem he is the person who was

with us and guide us how to tackle different problem created situations. We learned

practical experience of exploring different sections of nestle, which was very new for

us that what are the important aspects upon which an sales manager focuses, like

the distribution channels and the direct marketing or the personal selling, selection of

the proper channels for the logistics. We at this stage, once the project is completed,

have the firm believe in the fact that the project would not have been a successful

without the help of the above-mentioned people. We are thankful for the efforts and

the help of all of them.

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Table of ContentsTable of Contents

Sr.N

o

Description Page No

01 Introduction 05

02 History 05

03 Vision Statement 06

04 Mission Statement 0605 Nestle Business Objectives 06

06 Nestle Core Values 08

07 Nestle Pakistan Products 09

08 Sales Human Resource Management` 10

09 Corporate Level Strategies 11

10 Sales Force Training 12

11 Decision Making In Nestle 12

12 Employees Relation Teams 12

13 Reward and Benefits 1314 Sales Forecast 14

15 Responsibility and Society 14

16 Responsibility and Environment 15

17 Social Responsibilities 16

18 Nestle Culture 16

19 Nestle Sales force Management Hierarchy 17

20 Sales Force Management 18

21 Nestle Structure 1822 Nestle Management Process 19

23 SWOT Analysis 20

24 Nestle Recruitment 22

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Introduction:Introduction:In the 1860s Henri Nestl, 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

Nestl's new formula saved the child's life, and soon, Farine Lacte Henri Nestl was being sold

in much of Europe. In 1905 Nestl 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, Nestl's production had more than doubled. After the war

Government contracts dried up and consumers switched back to fresh milk. However, Nestl's

management responded quickly,streamlining operations and reducing debt. The 1920s Nestl'sfirst expansion into new products, with chocolate the Company's second most important

activity. The end of World War II was the beginning of a dynamic phase for Nestl. Growth

accelerated and companies were acquired. In 1947 came the merger with Maggi seasonings and

soups. Crosse & Blackwell followed in 1960, as did Findus (1963), Libby's (1971) and

Stouffer's (1973). Diversification came with a shareholding in LOreal in 1974.The first half of

the 1990s proved to be favorable for Nestl: trade barriers crumbled and world markets

developed into more or less integrated trading areas. Since 1996 there have been acquisitions

including San Pellegrino (1997), Spillers Pet foods (1998) and Ralston Purina (2002). There

were two major acquisitions in North America, both in 2002: in July, Nestl merged its U.S. icecream business into Dreyer's, and in August, a USD 2.6bn acquisition was announced of Chef

America, Inc.

History of Nestle in Pakistan:History of Nestle in Pakistan:A consequence of joint venture arrangement between Nestle S.A. of Switzerland and

Milkpak Ltd. in 1988, the existing production facility of Milkpak in Sheikhupura became a part

of Nestle Milkpak. The Milkpak Sheikhupura factory commenced operations in 1981 as a

producer of UHT milk. By 1988, it had expanded its operation and was also producing butter,

cream, desighee - all under the brand name of MILKPAK and juice drinks under the brandname FROST. To meet the demands of the large food market that Pakistan offered, Nestle

Milkpak reorganized and reinforced the production of existing brands and give shape to new

production lines. The first to come was a milk powder plant, which not only began producing

NIDO in 1990 but was also critical to the production of several milk-based products in the

future. With the installation of the roller dryer in 1990, the first such product to come was

CERELAC - an internationally recognized brand of infant cereal. This was followed by

LACTOGEN 1 & 2 in 1991. The year 1992 saw the introduction of tea whitener EVERYDAY

and milk powder in bulk packing named GLORIA. MILO and NESLAC came under

production in 1994 and MILO RTD in 1995. Local packing of imported coffee under the name

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of NESCAFE 3 in 1 commenced the same year. In 1996, Nestle Pak Ltd first confectionery

plant of POLO Mint was installed and the production of NESTLE PURE ORANGE JUICE

commenced. Packaging of coffee under the brand name of NESCAFE CLASSIC wasundertaken the same year. In 1997 NESTLE WHEAT and two variants of POLO viz.

Strawberry and Orange was introduced. In 1998 a substantial capital investment was made to

launch several products and install two new state-of-the-art technologies. SWEET TREETS

were launched in early 1998. The addition of two flavors of POLO: Blackcurrant and Strong

Mint increased the number of POLO variants to five. A new variant Lemony was added to

the range of popular FROST fruit drink flavors and a new 1-liter packing of FROST was

introduced. Flavored milks under the brand FRESH & FRUITY came under production on the

new Tetra Filling Machine equipped with the modern "slim" format. MILO RTD and UHT.

Vision Statement:Vision Statement:The strategic priorities of Nestle Pak Ltd are focused on delivering shareholder value

through the achievement of sustainable, capital efficient and profitable long term growth.

Improvements in profitability will be achieved while respecting quality and safety standards at

all times. In line with this objective, Nestle Pak Ltd envisions 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. Nestle Pak Ltd

envisions the company to develop an extremely motivated and professionally trained workforce, which would drive growth through innovation and renovation. It aspires, as a respected

corporate citizen, to continue playing a significant role in the social and environmental sectors

of the country.

Mission Statement:Mission Statement:Nestls mission is to provide the best food to people throughout the world.

Business Objectives of Nestle:Business Objectives of Nestle:

Nestls business objective is to manufacture and market the Companys products in

such a way as to create value that can be sustained over the long term for shareholders,

employees, consumers, and business partners.

Nestl does not favor short-term profit at the expense of successful long-term business

development.

Nestl recognizes that its consumers have a sincere and legitimate interest in the

behavior, beliefs and actions of the Company behind brands in which they place theirtrust and that without its consumers the Company would not exist.

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Nestl believes that, as a general rule, legislation is the most effective safeguard of

responsible conduct, although in certain areas, additional guidance to staff in the form

of voluntary business principles is beneficial in order to ensure that the higheststandards are met throughout the organization.

Nestls Culture Nestl is committed to a number of cultural values. These values come

partly from its Swiss roots and have been developed during its history. They are also

evolving so as to support the permanent reshaping of the Company. They can be

described as follows:

Commitment to a strong work ethic, integrity, honesty and quality.

Personal relations based on trust and mutual respect. This implies a sociable attitude

towards others, combined with an ability to communicate openly and frankly.

A personalized and direct way of dealing with each other. This implies a high level of

tolerance for other ideas and opinions, as well as a relentless commitment to co-operate

proactively with others.

Openness and curiosity for dynamic and future trends in technology, changes in

consumer habits, new business ideas and opportunities, while maintaining respect for

basic human values, attitudes and behavior. Like, open and flexible culture is ensured

by way of providing training programs to employees at all the levels.

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Nestle Core values:Nestle Core values:The Nestl global vision is to be the leading health, wellness, and Nutrition Company in the

world. Nestl Pakistan subscribes fully to this vision.

In particular, NESTLE envision to:

Lead a dynamic motivated and professional workforce proud of its heritage and

bullish about the future

Meet the nutritional needs of consumers of all age groups 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

the country.

We have profitable and diversified high quality food and beverage product portfolio,

delivering 60:40+ advantage to consumers, available across all sales channels.

Our brands are the preferred choice in their categories. Consumer insight drives allaspects of our marketing and communication efforts.

Our communications to the consumer are relevant, cutting-edge, and adhere to the

highest standards of responsible communication.

Our company is seen as the No. 1 career destination for talented, motivated and

ambitious professionals.

Our result-oriented organizational structure ensures effective communication and

empowered self-management.

Our milk collection and Agri services will continue to play the primary role in

development of the dairy sector in rural Pakistan.

Our proactive innovation and renovation culture is the key to our success in the

marketplace.Fully integrated systems (Nestl Pakistan, suppliers, customers) ensure

efficient business processes.

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Non-strategic activities and products are outsourced or discontinued.

Nestle Pakistan Products:Nestle Pakistan Products:We believe that food plays a key role in achieving a well-balanced person. And so our

philosophy is Good Food for a Good Life! At Nestl, our products are developed keeping our

consumers, their preferences and health in mind. Millions of consumers the world over trust

Nestl products for good reason: when they choose a Nestl product they have the satisfaction

of choosing quality, taste, variety, convenience and the good nutrition. With over 140 years of

experience and expertise, we take great pride in bringing you a portfolio of health and wellness

because happy, healthy consumers are important to us.

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Sales Force Human Resource Management at Nestle:Sales Force Human Resource Management at Nestle:

A human Company providing a response to individual human needs throughout the world with

specific concern for the well-being of both its consumers and its employees. This is reflected in

its attitude and its sense of responsibility towards people. Nestl aims to increase sales and

profits but, at the same time, to raise the standard of living everywhere it is active and the

quality of life for everyone. Nestl is also convinced that it is the people who form the strength

of the Company and that nothing can be achieved without their commitment and their energy,

which makes people its most important asset. Involvement of people at all levels starts with

appropriate information on the Companys activities and on the specific aspects of their work.

Through open communication and active co-operation, everyone is invited to contribute toimprovements enhancing Company results and personal development. Therefore, we can

conclude that the models that Nestle follows are: - High Performance, - High Involvement

&- High Commitment. NESTLS SPIRIT

Making Big Investments in People

At Nestl Pakistan we make big investment in people, they are our top priority. For us, our

people are the key drivers for our success. Nestl Pakistan provides its employees a dynamic

professional environment bound by one spirit, The Nestl Spirit' and that makes Nestl

Pakistan a great place to work. Nestle Pakistan is a vibrant company enhancing the quality of

life of its consumers by offering them world class food products driven by Nutrition, Healthand Wellness. At Nestl Pakistan your integrity, professional skills and performance is what

matters. We trust our people and believe in giving early responsibilities and encourage them to

actively contribute to the log term sustainable growth of the business. At Nestl Pakistan we

believe in building leaders who can take on challenges, innovate and write success stories.

Nurturing starts from day one on the job. Business dynamics and need directed training

programs offer employees with opportunities to acquire and develop desired functional, people

management and decision making skills enabling success at work.

Nestl is conscious of the fact that the success of a corporation is a reflection of theprofessionalism, conduct and the responsible attitude of its management and employees.

Therefore recruitment of the right people and ongoing training and development are

crucial.

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NestlsNestls Corporate Level Strategies:Corporate Level Strategies:

Following are the corporate level strategies.

Products growth through innovation and renovation (while maintaining a balance in

geographic activities and product lines).

Build business based on sound human values and principles.

Long-term commitment to the health and well being of people in every country in the

scope of their operations.

Business should be conducted by adhering to the values and management principles ofthe organization.

Business Level Strategy:Business Level Strategy:Following are the Business Level Strategy.

Low cost - less price transparency is followed.

Differentiation - to reduce the risk of complexity of supply chain and lowerattractiveness for discounters.

Competitive Advantage of Nestle:Competitive Advantage of Nestle:

Its Research and development (R&D) system.

Its product range.

Global reach and.

280,000-strong workforce.

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Sales Force Training at NESTLE:Sales Force Training at NESTLE:

Training from the factory floor to the top management, training at Nestl is continuous. And

because it is mainly given by Nestl people, it is always relevant to the professional life.

Throughout the world, each country runs its own training programmers (e-Learning, classroom

courses, and external courses).Nestle provides the following:

Literacy training-to upgrades essential literacy skills, especially for workers who operate newequipment.

Nestle Apprenticeship Programes.Nestle apprenticeship programes are also provided to employees to enhance their working

skills.

Training Programes-on issues ranging from technical, leadership, and communication andbusiness economics.

Decision Making in Nestle:Decision Making in Nestle:

Nestl is as decentralized as possible, within the framework imposed by fundamental policy

and strategy decisions requiring increasing flexibility. Operational efficiencies, as well as the

group-wide need for alignment and people development, may also set limits to decentralization.Decentralization: Nestl recognizes that its consumers have a sincere and legitimate interest in

the behavior, beliefs and actions of the Company behind brands in which they place their trust

and that without its consumers the Company would not exist. Nestl believes that, as a general

rule, legislation is the most effective safeguard of responsible conduct, although in certain

areas, additional guidance to staff in the form of voluntary business principles is beneficial in

order to ensure that the highest standards are met throughout the organization. Nestl is

conscious of the fact that the success of a corporation is a reflection of the professionalism,

conduct and the responsible attitude of its management and employees. Therefore recruitment

of the right people and ongoing training and development are crucial. Nestl continues to

maintain its commitment to follow and respect all applicable local laws in each of its

transparent performance appraisal systems and the freedom given to those to question their

seniors benefit not only the employees but even the organization as well.

Employee Relations Teams:Employee Relations Teams:It consists of two expert sub-teams, each with specific responsibility for business-wide

strategic and operational remits. Employee Relations sub-team provide business-wide advice

and guidance to line managers and the HR community on individual employee relations matters

and to HR Business

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Partners on broader employee relations and change management issues, as well as developing

and implementing Nestls policies and procedures in this area and undertaking relevant project

work.

Employee Relations in Nestle:Employee Relations in Nestle:Nestle provides a very healthy working environment which is one of the reasons why Nestls

employees state their commitment level to be very high.

Employee turnover is less than 5%., which is considered to be very low for a

multinational corporation.

Nestle has an open culture & upward communication especially in case of grievance

redresser is encouraged.

Work/Life balance is given importance, as illustrated in the Nestle Human Resource

Policy document.

Nestle Family annual events are organized by their HR department whereby employees

along with their families are invited.

Emphasis is laid on safety of employees (Nestle Policy on Health and Safety at Work(

Rewards and Benefits in Nestle:Rewards and Benefits in Nestle:

Rewards:Rewards:

Passion to Win awards- These quarterly awards have been institutionalized to reward

those who over-achieve their targets. Long-service Awards- To recognize employees

who have been with the company for more than 30 years.

Nestle Idea Award- It was found from the correspondent that the company institutes

Nestle Idea Award every quarter to recognize and award employees who come up with

relevant and innovative ideas which have the potential of being implemented at Nestl.

For all aspects of Reward Nestle apply the fundamental principles outlined below.

Reward Principles.

Performance Driven - The level of your Reward is linked to your performance, hencethe highest performers will see the greatest Reward. There is also a direct link between

the performance of the business and the Reward we're able to offer.

Competitive - We benchmark all aspects of Reward to ensure we offer all ouremployees a competitive Reward package.

Inclusive - Our Reward programmed is designed to reflect the valuable contribution

which every employee makes, not just senior managers.

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Flexible - We've made it our top priority to allow you to tailor the Reward you receiveto your circumstances, whenever possible or practical.

Benefits:Benefits:The following benefits are provided to all employees, with no discrimination:

Leave-Personal & Medical (fixed no. per year)-

Children Education Assistance Scheme-

Provident fund-

Retirement Gratuity Scheme.

Group Insurance & Accidental Insurance Scheme.

Conveyance Reimbursement Scheme.

Group Insurance & Accidental Insurance Scheme.

Conveyance Reimbursement Scheme.

Sales Forecast:Sales Forecast:In Nestle Major Forecast is made in the following area:

Nestle Milk Pakforecast the demand of products on annually basis with mutual understandingbetween planning and selling departments on the basis of historical data and sales forecast

estimates. They conduct monthly meetings and fine tune the forecast on monthly basis. As in

summer when availability of milk is scarce and demand is high, they have stock in winter to

meet this demand. They produce more in peak season (Jan, Feb, and March) to meet thedemand of lean seasons (June, July, August).nestle prefer the quantitative technique for thesales forecasting because it is dependent on the historical data of sales.

Corporate Social Responsibility:Corporate Social Responsibility:

They believe that every single company, no matter where in the world it operates, oughtto be

fully integrated into the local social, cultural & economic life. They must be good

corporate citizens, and give back to the societies to which they belong. There are two ways of

fulfilling their responsibility and practicing corporate

Social Responsibility:

Through social investments: giving to charities, leading and supporting cultural or

welfare initiatives.

Through the realization that businesses create social and environmental impacts, both

positive & negative, through the daily operations of their value chain.

Responsibility and Society:Responsibility and Society:Taking the Nestl concept of corporate Social Responsibility to heart, they are deeply involved

in social investment and humanitarian aid. They are committed to Pakistan's long-term

betterment, and strictly follow the codeCorporate governance:

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They deal fairly with stakeholders.

Serves there consumers through safe, high quality products & communicate with the

Responsibly. Adhere to environmentally safe industrial practices

Actively involved in several social action programes (SAPs) to improve the lives o

Their country's under-privileged people.

They adhere to the global Nestl philosophy of Creating Shared Value. There dairy suppliers in

the Punjab's milk district can attest to the agricultural and technical support they offer them.

During their manufacturing process they are careful to minimize environmental impact and

value employee welfare highly. Finally, they try to benefit there consumers by spreading

awareness about healthy nutrition and lifestyles as well as constantly developing or improvingexisting products for health, nutrition and wellness.

Responsibility to Environment:Responsibility to Environment:

In line with Nestl's global commitment, Nestl Pakistan is dedicated to playing its role in helpi

ng to protect the environment. They comply with the Environmental Act (1997), and try to ensu

re that at every stage of their operations, the environmental impact is minimal.

There Environmental Commitment in Action

There environmental commitment extends to every part of their value chain. Thus, at the raw

materials stage, they support sustainable agricultural and dairy farming practices, including env

ironmental protection. When it comes to production, all their factories try to maximize eco

efficiency, i.e. increase production while minimizing resource consumption, waste and emissio

ns.

There factories are equipped with complete testing and monitoring facilities for waste and air e

missions. To eliminate air pollution, they have stopped using heavy fuel oil in their factories, w

hich are now run on clean natural gas. This has reduced their emissions into the atmosphere to

well below the legal limits. There Sheikhupura & Kabirwala factories have elaborate water trea

tment systems to prevent wastewater from polluting the environment. In 2005, they upgraded th

eir wastewater treatment plants in both factories. That's not all; they are continually reducing th

eir consumption of raw water per ton of production. Irresponsible packaging can have a heavy i

mpact on the environment. To reduce the amount of material used without jeopardizing the safe

ty and quality of their products, they are always working on new packaging solutions that have

minimal weight and volume and can be easily recycled. They even operate a collection system for used packaging. Solid waste is collected at source and then reused, recycled or disposed in a

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n environmentally friendly way. Natural gas incinerators at their Sheikhupura & Kabirwala fact

ories are used to safely dispose of material that cannot be recycled & dumped. There factories h

ave environment committees to manage routine environment issues and review performance. Environmental impact assessment is done in advance for every new project and measures are ado

pted to minimize adverse impacts on the environment. There employees regularly undergo train

ing to inculcate awareness about environment friendly practices.

Social Responsibility:Social Responsibility:In October 2005, the biggest natural calamity in their history struck Pakistan. Thousands died a

nd millions were left homeless after a massive earthquake hit their mountainous northern areas.

In step with the rest of the nation, Nestl Pakistan responded immediately, putting its infrastruct

ure and resources to work in the affected areas.

We support charities, education and training initiatives, art and cultural events, sport

events and HIV/AIDS prevention.

Nestle Culture:Nestle Culture:We found a very strong organizational culture in Nestl. It believes on team work. The head

office gives the guide lines to the zonal managers and tells them their budget limitation. The

zonal managers are totally independent in making their plans and use their budget. Similarly,the regional managers are independent in there areas. They are given a certain target and a fixed

amount of budget. This is their own discretion to make plan and get the targeted result in the

given budget. The internal control system of the organization is also very tight and effective.

The check and balance system is also very strong. Due to this strong check and balance, they

can make correction in their plans. If at any time or at any place, the plan does not work

properly, the manager knows it at a right time and they can make it well. Nobody is allowed to

violate his power. They are not completely satisfied their current performance and work for the

betterment and development of the system. This is possible only through the collective

commitment.

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Management Hierarchy in Nestle Pakistan:Management Hierarchy in Nestle Pakistan:

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ManagingDirector

MarketingManager

FinanceManager

ProductionManger

Zonal ManagerZonal Manger Zonal Manger

Sales

Department

A/c

Department

Sales

Promotion

Sales

Department

Assistant Sales

Manager

A/C

Department

Sales Force

Regional Sales

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Sales Force Management In Nestle:Sales Force Management In Nestle:

Nestle is controlled by the M.D. His subordinates are Marketing Manager, Finance Manager,

and Production Manager. They have their respective departments. They all work under the

guidance of M.d. They are actually the bureaucracies of the organization. They control and

implement the policies of the organization. Under Marketing Manager, National Sales

Managers work with his sales department. He controls the sales and regarding policies for the

company for all the products of the company. Three Zonal Sales Managers work under the

N.S.M

They are divided in to three zones, called North, South, and Central. Each Z.S.M have his ownsubordinates in Marketing, Finance, Promotion, and Sales departments. As said before these

Z.S.M are fully independent to make their own plans with the limited budget, and according to

the guidelines of the companys top management. Regional Sales Managers are the

subordinates of the Z.S.M. They are guided by the Z.S.M. They can make their own plans and

can use their allocated budget according to their own will but according to the guidelines

provided by the company. Under R.S.M

There is an Area Sales Supervisor, who is responsible for his respective area. R.S.M. has also

Sales Agents, Mkt. Agents. Who work under the direct control of R.S.M. Actually department

of each person is defined when they got the authority letter. They can work independently in

the defined authority. They have no discretion. They are independent but can work under therules and regulations of the company. Total number of Employees.

Nestle Pakistan Turnover and Employees:Nestle Pakistan Turnover and Employees:

The total number of workers working in the factories and offices of the company are more than

2500.

In 2009 the total turnover of the company in Pakistan was 5.5 billion Rs. and in 2004 this was

5.65 billion Pakistani rupees.

Company Structure:Company Structure:Nestle head-office in Pakistan is in Lahore. It also has its registered office in Lahore.Nestle has

divided the whole Pakistan in to three zones:

Northern Zone

Central Zone

Southern Zone

Nestle has 10 regional offices in all over the Pakistan. These offices work under their respective

zonal offices.

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Factories:Nestle has two factories in Pakistan for the production of different food items.

One in Sheikhupura near Lahore and other in Kabeerwala near Multan.Location of Factories:

Sales Management Process of Nestle:Sales Management Process of Nestle:

In Pakistan the management process is made by the management of Pakistans headquarters

and approved by Verves headquarter.

Planning:Planning:

Firstly when a need is observed to launch any product here in Pakistan a plan is made by the

process of market research. They observe the need; demand of the product, target market issettled. The cost and the expected profit that is their goal are being estimated. The promotional

activities are made like posters and pamphlets and introductory samples are represented they

define their goal to make and present value added products according to targeted market the

staff hiring strategies and marketing strategies are planned.

Organizing:Organizing:

After planning they organize the activities like which kind of people are required and the

process that would be controlled by them under which situations and how they would move.

For example NESCAFE CLASSIC was planned to be launched in urban area for young

people so the organized activities like the kind of brand managers, territory in-charges who

inform Assistant Sales Manager were to be selected? And where the tasks to be done?

Leading:Leading:It Concern as they prefer their people as they say, PEOPLE FIRST Nestl is more people and

product orientated than systems orientated And they are ass decentralized as possible The

motivating activities are all around for their employees as they train employees for their

education.

Following motivations are given to people: Life cover

Sick pay

25 days' holiday

Mobile phone on a business need basis

Company bonus scheme

Controlling:Controlling:

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Under this managerial activity they compare its manufactured products with standard products

and after feed backs they made any change if required for example they maintain their labs in

Sheikupra and Kaberwala according to Switzerlands standard and the product from there is

send by time so that the manufactured products are supposed to check it according to thesesstuff. For example: NESCAFE CLASSIC was planned according geographically for urban

areas and demographically college going young boys and girls after observing market interest

and condition then Marketing strategies were according the target market so they GET

STARTED WITH NESCAFE The brand mangers and tertiary in-charges were hired according

to the plan. And over all strategies were organized. The launched coffee samples were

compared with the samples sent from headquarters VEVEY. And the required changes were

made according to feedbacks.

SWOT Analysis of Nestle Pakistan:SWOT Analysis of Nestle Pakistan:

Strengths:Strengths:

Quality

Service

Brand name and image

Less competitors

The strength of Nestl's brands has given the company an unparalleled position on a global

basis across a wide range of product categories. Six worldwide corporate brands, Nestl,

Nescafe, Nestea, Maggi, Buitoni and Friskies contribute about 70% of the group's total sales,with the Nestl brand itself contributing 40%.(globalize profit)The value added products.

Research and development department keeps nestle in continuous knowledge about itself and

competitors. For launching new product they adopt 60% and 40% test method. Its unique

features and technology of brand stretching.

Weaknesses:Weaknesses:Less knowledge about host country culture norms and value.

Opportunities:Opportunities:

To expand business in different countries.

Threats:Threats:

They see following threats in future coming time: Some other Multinational companies are also

planning to enter the Pakistani market .e.g. beverages of Pepsi & Coke would can also be

accepted by the people of Pakistan.

Changing Role of HR in Nestles:Changing Role of HR in Nestles:

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The importance of the human resource function has become evident especially with the onset of

global competition. Not only do human resource managers have to think more strategically andin step with corporate planning managers, they have had to address real and hard issues about

the impact of intense competition on employment stability. It is one thing to think with

executives on how the human resource section can support corporate activities. It is another to

actually implement cost-savings policies with regards employment. To guard against the

downside of global competition; the human resource managers must be more proactive in

recruiting and maintaining a responsive and efficient work force. Planning should start at the

early stages so that organizations do not bloat needlessly. Human resource managers must be

able to map out human resource strategies such that flexible, dynamic employees are attracted,

selected and then trained and motivated to be more productive than the competition. Humanresource managers are no longer administrators or simply implementers. They should be

recognized as strategic partners. Only then can they function well to help top management

especially in a climate of economic uncertainty. Although, Nestle being a Human Company

itself possess many of the above mentioned qualities that are supposed to be present in the

managers of todays time. But, according to the changes in the business patterns, globalization,

and diverse business of Nestle and rapidly changing ups and downs in the economy. There are

certain factors on which the role of the HR at Nestle is changing. The HR managers at Nestle

along with professional skills, practical experience and result focus must possess the following

qualities:

They should be capable to motivate and to develop people, addressing all those issues that

allow others to progress in their work and to develop their capabilities.

They should be able to inhibit curiosity and open-mindedness as well as a high level of interest

in other cultures and life-styles.

This also includes a commitment to continuous learning and improving, as well as to sharing

knowledge and ideas freely with others.

It is responsibility of the HR professionals to create a climate of innovation and to think outside

the box. This implies the right to make a mistake but also the readiness to correct it and to learn

from it.

HR professionals should now be able to inculcate the willingness to accept change and the

ability to manage it.

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They should provide international experience and understanding of other cultures. This will

prepare the employees to face the challenges in global markets.

Recruitment in Nestle:Recruitment in Nestle:The anticipated global shortage of workers has not gone away: it has just been postponed. The

reason? Baby boomers are choosing to work a little longer because their retirement savings

have been deflated. Once the market comes back fully, you should expect a mass exodus as the

boomers leave the workforce. Companies who make severe staffing cuts and don't keep their

HR people connected to potential hires will be caught severely short staffed. Savvy companies

have a great opportunity right now to hire talented people who have been down-sized other

organizations.

Motivational Techniques at Nestle:

Defined contribution plan

The Company operates a recognized provident fund for all its regular employees,

excluding expatriates. Equal monthly contributions are made to the fund both by the

Company and the employees at the rate of 12% of the basic salary plus cost of living

allowance

The company is contributing in recognized provident fund for the welfare for their

employees and they have intention for the betterment of them. The employees

knowing that the company is contributing for their future, they invest their energy for

the sake of organization.

Our commitment to sustainable development will be accomplished by integrating

occupational safety, health and risk management programme at all workplaces to

provide a healthy and safe work environment for employees, contractors and visitors.

Exercising this commitment and reflecting its benefit to the community remains

central to our business strategy for today and tomorrow.

Therefore, we value our people and environment and are committed to

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Develop and implement the SH&E (Safety Health and Environment Policy)

Management System at all workplaces and incorporate all applicable SH&E

Standards.

Identify and reduce hazards and environmental aspects in order to:

- Prevent injuries and damage to health of employees, contractors, visitors and our

business.

Establishing measurable objectives and targets for SH&E that are reviewed

periodically to ensure continual improvement aimed at:

- Eliminating work related injuries and illness.

- Preventing pollution and improving environmental performance.Nestl regards its personnel as its most valuable asset. Involvement at all

levels starts with open communication, whether on specific aspects of the

business, or about the activities of the Company in general. Suggestions for

changes and proposals for improvements of Nestls practices are encouraged.

Here if we talk about the five basic factors of motivation among employees of

Pakistan i.e. Organization Image, Job Security, Compensation, Goodrelationship, Team Work

We conclude that Nestle Pakistanis committed and getting results from its

employees by providing them these motivation factors.

Nestle Pakistan is a renowned organization all over the Pakistan and

employees of this organization are satisfied and feel job security. Their

compensation levels are higher than the market thats why employees

motivated to their work and strive their best to achieve the strategic goals of

the organization. The organization having good relationship with employees

and their practices are really appreciable and they believe in Team work rather

individuals.

Other than these factors Nestle also providing their employees many other facilities

in order to motivate them and feel happy to work for the organization.

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A list of other benefits working as motivation factors among the employees of Nestle

Pakistan.

Higher salary

Job Security

Gratuity

Bonuses

Old age benefits

Residence facilities

Transportation

Health and safety

The entire above are the motivation factors for the employees and due to these

factors they are committed to their work and imparting to achieve the organization

goals.

Market ShareNestle is now a days willing to have more and more marketshare so that it could achieve the goals that are set. Thegoal for market share will be discussed below.

Nestle occupied 85% of drinking water market in all over thePakistan.In LahoreNestle Pure Life has 69%of total market, Sparklet has 13%and Cool have 11% and remaining 7%are kept by other localcompanies. In Karachi 50% of market is kept by Nestle and25% by AVA and remaining 25% is kept by other localcompanies. As for as Islamabad is concern Nestle Pure Lifehas 65%of market Share.

They have certain goals and objectives which they wantto achieve. They want to create and promote theirproducts to create value for their product. They have theresources for increasing their products quality andcompete it with the other companies. They conductresearches for that and try to get theirobjective which theyhave decided. They are promoting their productby creatingcustomer awareness.

Nestl believes that, as a general rule, legislation is the mosteffective safeguard of responsible conduct, although in

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certain areas, additional guidance to staff in the form ofvoluntary business principles is beneficial in order to ensure

that the highest standards are met throughout theorganization.Nestl is conscious of the fact that the success of acorporation is a reflection of the professionalism, conductand the responsible attitude of its management andemployees.Therefore recruitment of the right people and ongoingtraining and development are crucial.

Market Distribution and Channels Strategy

Nestl Pakistan's supply chain and distribution makes surethat Nestl products are accessible, no matter whereconsumers are in Pakistan. Nestle aims to put together

processes from the farm to

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markets, and make sure products are distributed to theconsumers at the correct time, the right cost and in the

accurate quantities. In the first quarter of 2006, Nestleproved it by delivering an amazing 136 million kg of Nestlproducts in Pakistan.The mission of Nestle Supply Chain is to:1. Optimize and consolidate resources and processes for alow-cost but efficient2. Develop and manage simplified and effective supplynetwork toachieve a high level of service

3. Create a continuous improvement culture driven byperformanceMeasures and reward.

To accomplish their tasks, the company chooses bothmarketingchannels method that is conventional and vertical. Inconventionalchannel, Nestle Pure Life is distributed among thewholesalers ofPakistan and from wholesalers; the products are distributedto retailers and from retailers, the products reaches toultimate consumers. Nestle Pure Life is also delivered

directly to the consumers throw vertical distribution channel.In this channel, the cost can be minimized.

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Personal SellingA direct Vendor Selling Activity was coordinated and carriedout during the summer months of June, July, and August1999 in Lahore. A team of vendors, clad in branded T-shirts,caps and jackets, sold chilled 0.5 liter bottles to travelingcustomers on all major intersections. The brand got greatmileage out of this innovative idea of personal selling interms of brand awareness, paid trial, image as well as realsales.

Direct Marketing:At nestle distribution of products,information andpromotional benefits to target the consumers throughinteractive communication in a way which allowsresponse to be measured. It covers a wide array ofmethod, including the following :Posters

BillboardsBroachersRecreational campign(in different universitiescolleges,stalls at malls)

PublicityPure Life was launched on 14 December, 1998 in Karachi with a

hugeamount of enthusiasm and positive response shown by thelocals. Thesuccessful story of its launch was printed in all the localnewspapersthe next day. This greatly helped in creating awareness of thebrandand gave its introduction a good start.

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Sales PromotionSpecific promotions of Nestle Pure Life were arranged insome of the key outlets of Lahore. Elaborate shelf space wasacquired for product display and specially designed POSmaterial was extensively used to promote sales. On a 12-bottle purchase of 1.5 ml, one 1.5 ml bottle was offered freeto consumers. Similarly on a 6-bottle purchase of 1.5 ml, one0.5 ml bottle was offered free. Regarding trade promotion,the retailer was also given an additional discount of 4 %

during this sales promotion. Not only did the sales of NestlePure Life grow tremendously during the promotion, thesecontinued at a higher pace even after it was over.

The Preference of nestle is on the two promotions:

Trade Promotion:

They achive widespread distribution of new brand.

Nestle display the excess stocks on retailers

shelves. Nestle achieve required display levels of of

product.

They encourage greater overall stockholding of aproduct.

Nestle also encourage support for overallpromotional strategy.

Personal Promotion

Extension in new product line.

Encourage the retained customers to buy the slowselling products.

Nestle develop the new options for sales peopleand KAM customers.

Develop new sales skills to the sales persons bygiving them up to date training and by giving themcompensations.

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Problems according to the group analysis

The company should make huge expenses onadvertisement in rural areas of Pakistan to createawareness in the mind of local area's people.Thecompany should held seminars and meeting for thepromotion of Nestle Pure Life.

Strategies recommended for rectifyingproblems

They should increase their product quality as now a day theyare facingproblem of impurity of their products. They have to improve themarketing strategies. So that they can capture market andimprovetheir sales.

Nestle is the world leader in FMCG industry. People trust ontheproducts launched by the company even the product isfacing someproblems.Nestle was doing its good job in past but now it isfacing some problems of low quality of their products. Nestleis sued by someone they claim that they are doing unethicalbusiness. They are mixing unhygienic things which cancause damage to customers health. Its example is that theirwater is not pure and good for health. You can see dustpartials in Nestle mineral water when you keep it in sunlightthat shows its product quality is down. Now they have to domore making their strong position in market because whenyou lose your image in customers eye then it is difficult torenew their image.

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Influence of IT in the boundries at Nestle:

Now a dayIT is very beneficial for the success of business inmodern ERA. Nestle use IT in the following areaskAM is listed by a softwareInventory systemAll the salesman are inter connected to the main server(theyare centerlized).Nestle also use IT in sales forecasting

It also uses IT in recruiting processNestle also uses IT in Office work (all the employee dailytask is uploaded in main head quater server from anyregion.

Nestle Business expo:

Various stalls for new product are exhibited at pearl continental

(Lahore) ,Marriot (Islamabad, Karachi )According to their segments which nestle had divided.Nestle aware customer about the social responsibility, and the environmental responsibility.

Nestle pursue the existing customers to have a status of KAM customers. acquire new

customers

Key Account Management:

BASIC CONCEPT OF KAM APPOACH:Key account management is an approach to build sustainable business by first looking from the lens

of the customer. What is their ambition? How to they intend to achieve their goals? What is your role

in achieving their goals?

Key account management is a strategy used by the supplies to target and serve high potential

customers with complex needs by providing them with special treatment in the areas ofmarketing, administration and services.

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So as all the other companies do the KAM approach, as Nestle do:Nestle give the Key Account Status to following large Wholesalers and some renowned super

store from where nestle can generate more sales and they can achieve the more customer and

brand loyalty with them:

HYPERSTAR

MACRO

METRO

Pot Puri

Alfateh

HKB

Victoria

And much more.

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