Literature review The story of nestle begins in 1867, when Henri Nestl developed a baby formula that saved

a child's life and marked the beginning of Nestl's decades-old commitment to nutrition. Henri Nestl, a Swiss pharmacist, begins experimenting with cow's milk, wheat flnestle and sugar to develop an alternative for infants who cannot be breastfed. His ultimate goal is to help reduce infant mortality from malnutrition. Eventually, he develops Farine Lacte Henri Nestl, which is sold under his own coat of arms. This remains Nestl's distinctive brand even today.After the formula saves a child's life, people swiftly recognise its value, and soon Farine Lacte Nestl is available across Europe. Today, Nestl SA is the world's largest Food and Beverages Company, and a global leader in health, nutrition and wellness. Consumers around the world, from village squares in Nigeria to the skyscrapers of New York and Chicago, are united by the Nestl promise of quality, taste, nutrition and convenience. Though headquartered in Vevey, Switzerland, we now have 487 factories dotted around the globe, employing over 250,000 people in 86 countries. Nestle products are available in almost every country, and in 2005 nestle global sales reached $73 billion. Nestle operations are spread across three global zones covering Europe, the Americas, Asia, Oceania and Africa. Recognising that every region has its special needs, the three zones operate locally, but are united by a common vision and priorities. The voices of even the smallest local markets are heard at nestle headquarters in Vevey, Switzerland. Nestle immense popularity comes from nestle efforts to develop products that give quality and nutritional benefits at low prices, even in the most remote regions. We distribute them using local means; in Madagascar, for instance, backpacker salesmen sold over 12 million MAGGI tablets within six months, an approach that was duplicated in Pakistan and Mozambique. Nestle consumers know that they can rely on us to be there when we are needed. Nestle In Pakistan y y y y y Nestle have been serving Pakistani consumers since 1988 when the parent company Switzerland based on Nestle first acquired share in Milkpak. Nestle acquires 40% share in Milkpak. In 1990, Sheikhupura factory started the production of Nido Milk Powder cereals; 1n 1992, Nestle took over the running of company (Kabirwala plant) and began to develop its Milk collection network. In 1996 Milkpak was renamed to Nestle Milkpak Ltd.

y y y

In 1997, It becomes a fully owned unit of Nestle Pakistan. 1n 1998, Nestle Milk collection system in Punjab matures and company is able to buy all its Milk from Farmers instead of relying on contractors. In 2005, Nestle Milkpak Ltd. Is renamed again Nestle Pakistan.

Products Bottled water Baby food Dairy products Breakfast cereal Nutrition Prepared food competitors The main competitors of Nestle Milkpak are: 1. 2. 3. 4. Haleeb Milk Olpers milk Good Milk Dairy Queen Milk

competitive Advantage  Nestle Milkpak never compromises on quality.  Nestle Milkpaks extensive milk collection system ensures that the milk you get is of the finest quality.  Nestles products are available in every city and town  Nestle is using the latest technology in its production units.  Nestle makes milk powder of the surplus milk in winter and converts this milk powder into UHT milk in summer.

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. Reference Mr. Usman Bucha Mr. Muhammad Hamza Mian Majeed Mr. Muhammad Ramzan www.goole.com www.nestle.com www.leverpakistan.com www.nestle-bestfood.com (Area Sales Manger) (Production Manager) (Owner En En Store) (Ramzan Bakers)

The University of Lahore Campus: Lahore Business School

New Product Development

SUBMITTED TO: Sir. Hammad Ashraf

SUBMITTED BY: Bilal Habib M. Usman Furqan Azeem Azib Javed Akif Abbas 02093-054 02093-055 02093-052 02093-143 02093-039