Submitted to Tahir Ashfaq

Submitted By Arslan Nawaz L1F11MCOM2165

M.Saghir Sarwar L1F11BCMH2021 M.Ali Naqvi L1F11MCOM0164 A.D Ahsan L1F11MCOM2144

Hina Razzaq L1F11MCOM2137 Javaria Abrar L1F11MCOM2142 Sumbal Aftab L1F11MCOM2146 Madiha Saber L1F11MCOM2155

MARKET POSITIONING AUDIT

1.0 Porter’s Five Forces

Porter's five forces analysis is a framework for industry analysis and business

strategy development formed by Michael E. Porter of Harvard Business School in

1979.

Porter's five forces include - three forces from 'horizontal' competition: threat of

substitute products, the threat of established rivals, and the threat of new

entrants; and two forces from 'vertical' competition: the bargaining power of

suppliers and the bargaining power of customers.

Porter referred to these forces as the micro environment, to contrast it with the

more general term macro environment. They consist of those forces close to a

company that affect its ability to serve its customers and make a profit.

Porters 5 Forces and Nestle Pakistan

Porter's 5 Forces

Intensity of competitive

rivalry

Threat of new

competition

Threat of substitute

products or services

Bargaining power of

customers

Bargaining power of suppliers

2.0.1 Intensity of competitive rivalry

Nestle Pakistan is a subsidiary of nestle international. Nestle Pakistan produce high quality

products. In Pakistan there are the following competitor of nestle. Which can effect nestle

sales.

Nestle Competitors

Product Category Nestle product in category

Competitor Competitor Products

Dairy

Milkpak, Nesvita, Nido Everyday, Milkpak Cream

Dahi, Raita

Haleeb Food

Engro Foods

Limited

Haleeb Milk, Haleeb

Skimz, Haleeb Doodh, Haleeb Yogurt & Raita,

Haleeb Cream Olper’s, Olwell, Tarang

Beverages

Nestle Nectar Juices

Shezan

Haleeb Food

Shezan allpure, twist

and regular juices Haleeb Just Fruit,

Tropico Nectar, Fun Milk

Breakfast Cereals

Koko Krunch, Corn Flakes

Fauji

Kellogg

Wheat, Rice, Choco,

Honey Flakes K Challenge, All Brain,

Honey, Corn Flakes, Cocoa Krispies, Cracklin'

Oat Bran

Shezan

Shezan international can compete nestle by its products. Shezan all pure, twist and regular

juices can compete nestle nectar juices because company charge low price from consumer

as from nestle.

Unilever Pakistan

Unilever Pakistan sub brand Knorr noodles is a major competitor of maggi noodles. Knorr

noodles are available in market in six different flavors. Chatt Patta Noodles, Chicken Noodles,

Chicken Jalapeno Noodles, Ketchup Noodles, Thai chicken Noodles and Lemon Chilli Noodles.

While maggi is available in four delicious flavors: Chicken, Chatkhara, Masala and Lemon.

Haleeb Food

Haleeb food can compete nestle by its products. Haleeb Milk, Haleeb Skimz Liquid & Powder,

“Haleeb Doodh” (Chocolate, Stawberry, Vanilla & Almond), Haleeb Yogurt & “Raita” (Mint or

zeera), Haleeb Cream, Haleeb Just Fruit (5 flavors), Haleeb Tropico Nectar (Orange & Mango &

Apple), Haleeb Fun Milk (chocolate, strawberry, vanilla and almond with cardamom and

saffron), can shuffle the sales of Nestle MilkPak, Nestle Every day, Nido, Nestle dahi & raita,

MilkPak cream, Nestle nectar Juices respectively according to their product categories.

Engro Foods Limited

Its sub brands Olper’s, Olwell, Tarang can affect MilkPak, Everyday.

Fauji Cereals

It is giving 10 different types of cereals as compare to nestle Pakistan which giving only two

flavors.

Kellogg

Kellogg competing nestle cereals.

2.0.2 Threat of new competition

These are the few companies which are entering in Pakistan to sell their products and making

profit. It is quite possible that these companies can shuffle the sale of nestle or made it

competitor.

Minute Maid

Fresher

Fruiticana

Qaswa

Nutrivita

Minute Maid

Minute maid is the parent company of Coca-Cola Company. Which producing high

quality product. Minute maid provides orange, Apple juices.

Fresher

Fresher provides juices in Apple, Mango, Grapes, Cheery.

Fruiticana

Fruiticana is Canada based company. It provides mango, orange, guava flavor juices in

Pakistani market.

Qaswa

Qaswa giving two flavor juices mango and guava to its buyer.

Nutrivita

Nutrivita is Pakistan based company fully owned by Agro ventures (Pvt) Ltd. It's

providing five flavor cereals in Pakistan.

2.0.3 Threat of substitute products or services

Nestle product substitute are given by following companies.

Dairy product substitutes

Nestle liquid milk products are MilkPak, Nesvita. There are some companies which providing

its substitute like Haleeb food giving Haleeb milk and Skims. Engro food private Ltd produces

Olper's. In condensed milk nestle giving Everyday for tea milk and Nido as tea milk. Engro

provides “Tarang” as substitute.

Juices Substitute

Nestle produce nectar juices under the brand name. Shezan all pure can be said as it

substitute.

Boiled Water

Nestle provide mineral water as brand name pure life. PepsiCo Inc. provides Aquafina to

consumer as substitute of pure life.

Cereal

Nestle provide Koco Krunch and Cornflakes as their cereal. Kellogs and fauji provides large variety of cereal according to the taste and age group of buyer.

2.0.4 Bargaining power of customers (buyers)

Nestle provide the best and most reliable food and beverage products to meet their needs throughout the day, throughout the life. They are often reassured that they will find well-known brands out of home. This statement also reflects the image of high quality products that Nestle offers. Nestle has the advantage that it offers complete range of high quality ingredients, base products and meal components, as well as leading consumer brands such as Nescafe, MilkPak and pure life. Quality is the cornerstone of the success of the Nestle Company. Every day, millions of people all over the world show their trust in the company by choosing Nestle products. This trust comes from a quality image that has been built up for over a century. Therefore, the quality of the products ultimately enhances the quality of the consumer’s life. Nestle has proven this ability a number of times by introducing new products that were required by consumers. Especially, the launch of Nestle Pure Life in Pakistan proves the accuracy of this fact. In Pakistan, there was a need for safe and healthy drinking water and Nestle responded to this consumer need by introducing Nestle Pure Life.

Building customer relationship based on customer value and satisfaction is at the very heart of modern marketing. The two fold goals of Nestle marketing are to attract new customer by promising to provide high quality product and they maintain old customers by providing then superior quality products.

2.0.5 Bargaining power of suppliers

The fruits uses for Nestle products are high in quality and purchase at good rate. Fruits for

Nestle are collected from different farms of Pakistan and they are checked by Nestlé’s best

authority officers at International Standards. One of the great suppliers of nestle are Packages

Limited. Packages Limited is the biggest dealers in Pakistan too many recognize Companies of

Pakistan such as Tetra Pak Pakistan Ltd. They are one of the good suppliers of the Nestle. As

they provide huge product to Nestle that’s why they are offering good price to the Nestle. To

sum up, we can say that Nestle suppliers are offering great prices to Nestle as Nestle is well-

known company of Pakistan and collect raw material at high level.