Hr Case Study Of Nestle Pakistan

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Innovation & renovation remained an integral part of the Nestle Pakistan Limited operational strategies and vision for growth.

Nestle Pakistan is also exporting their products and in the current year the company has experienced 25% growth in exports to Afghanistan The major new product launches during 20 included: MAGGI Umda Maza, MAGGI Noodles (Bar-B-Q, Masala & Karara), NESTLE Peach Nectar, LACTOGEN low lactose, & NESTLE Pure Life–5 liters.

Nestle Pakistan has announced in the current year that they will by spending 300 million Swiss francs ($413 million) over the next three to four years in Pakistan as it looks to fend off local rival Engro Foods Ltd.

The investment will be used to build new milk factories, Ian Donald, managing director at Nestle Pakistan Ltd. The money will also help boost the juice, yogurt and noodle businesses of Nestle Pakistan, whose market value has doubled in the past year.

Distribution is spread in 600 cities and small towns.

Nestle Pakistan has distribution force of 6000 people and 1500 vehicles to meet the demand.He further added that now we have so may brands in the bottled water category.Coco- Cola with Kinley brand and Pepsi with Aquafina will create lot of problems for Nestle leading brand “ Pure Life” in couple of years time as the price of Nestle is almost 40 to 50% higher than the other brands in 19 Litre category.Engro Foods just established in 2005, was the second-largest seller of drinking-milk products in Pakistan in 2010, according to Euromonitor.Nestle is pushing products for lower-income consumers into more rural regions of Asia as it aims to sell the items in a million stores by next year.Nestle Pakistan brands are the main flag bearers of the company’s image.Nestle Pakistan now operates the biggest milk collection operation in Pakistan, Currently; Nestle Pakistan collects milk from an estimated 190,000 farmers spread over 146,000 sq Km’s in the province of Punjab and Sindh.It was decided by Nestle top management (SBU) that Nestle pure life brand developed in Pakistan should be introduced in other countries using the Pakistani successful experience to their dvantage.Nestle pure life (bottled water brand) is now sold in 21 countries from North America, Asia and the Middle East to Africa and Latin America.The biggest weakness of Nestle Pakistan is that they have allowed their competitors to settle and become strong as they do not decrease their margins according to one chief executive of a leading company.Nestle which makes Kit Kat chocolate and Nido powdered milk is facing growing competition from Karachi-based Engro Foods in the dairy segment and Coca-Cola Co. in the bottled water and fruit juices businesses, according to data provided by London-based Euromonitor International.

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