Contents

EXECUTIVE SUMMARY ............................................................................ 2

BUSINESS DESCRIPITION ......................................................................... 3
WHAT IS MARKETING? ............................................................................ 3
INTEGRATED MARKETING COMMUNICATIONS ....................................... 3
COMPANY CHOSEN FOR IMC ANALYSIS ..................................................... 5
PRODUCT CHOSEN .................................................................................. 7
IMC TOOLS CHOSEN FOR MILKPAK ......................................................... 7
ADVERTISING (MAIN FOCUS OF MILKPAK) .............................................. 8
BROADCAST MEDIA................................................................................. 8
TRANSIT ADVERTISING .......................................................................... 10
BILLBOARDS & COMMUNICATION PROCESS ......................................... 11
SALES PROMOTION ............................................................................... 12
INTERACTIVE OR INTERNET MARKETING .............................................. 13
PERSONAL SELLING ............................................................................... 13
BUDGETING........................................................................................... 13
CONCLUSION ......................................................................................... 15

EXECUTIVE SUMMARY
Nestl with headquarters in Velvety, Switzerland was founded in 1866 by Henri Nestl and
is today the world's biggest food and beverage company. The Company's strategy is guided
by several fundamental principles. Nestl's existing products grow through innovation and
renovation while maintaining a balance in geographic activities and product lines.
The company succeeded in achieving sustainable profitable growth during the year under
the view driven by successful marketing and sales strategies and focus on key initiatives.
Consumer confidence in the companys brand has further strengthened and the trade
remains confident as ever in doing business with it. Innovation and renovation remained
the key to development of new products. Food services business unit is fast developing the
required skill and competencies to meet specialized needs of out-of -home customers and
hope that the organization structure will be more strengthened in the coming years. This is
changed 12% w.r.t last year.
22.62% as per share. Over all company market share is 80%. Nestl share as compared to
nurpur, nirala and other are moves around 20to 30%.Total turnover 12.9 Billion Rupees.
A detailed analysis of the integrated marketing communications used by the firm is given
here in this report along with the budgeting details and SWOT of company in general as
well as from advertising perspective and of the milkpak industry in Pakistan.

BUSINESS DESCRIPITION
Nestle Pakistan Limited is a Pakistan-based company engaged in manufacturing, processing and sale of
food products, such as dairy, confectionery, culinary, beverages, infant nutrition and drinking water. The
Company operates in two segments: Milk and nutrition products, which include milk based products and
cereals; and Beverages, which comprise juices and water. During the year ended December 31, 2011, the
Company produced 781.292 million liters of liquid products out of its annual capacity 1,249.098 million
liters, and 86.251 million kilograms of non-liquid products out of its annual capacity of 135.251 million
kilograms. The Company's products are traded under brands such as NESTLE MILKPAK, NESVITA, NIDO,
EVERYDAY, MILKPAK CREAM, NESTLE CREATIONS, NESTLE RAITA, NESTLE RIWAYATI MAZAA and NESTLE
FRUITA VITALS, among others. On December 3, 2012, the Company announced that it completed the
local transfer of Pfizer Nutrition business from Wyeth Pakistan Ltd to the Company. For the three months
ended 31 March 2013, Nestle Pakistan Ltd. revenues increased 1% to PKR20.43B. Net income increased
14% to PKR1.89B. Revenues reflect an increase in demand for the Company's products and services due
to favorable market conditions. Net income benefited from Finance Cost net decrease of 4% to
PKR412.7M (expense), Other Operating Income increase of 31% to PKR49.7M (income).

WHAT IS MARKETING?
There are many definitions of marketing. The better definitions are focused upon customer orientation
and satisfaction of customer needs.
Marketing is the social process by which individuals and groups obtain what they need and want
through creating and exchanging products and value with others
Marketing is defined by the American Marketing Association as the activity, set of institutions, and
processes for creating, communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large.
Marketing is a Systematic process which starts from Customer and ends on Consumer along with
profitability.
Marketing is successful if customer becomes a repeated consumer after getting full satisfaction.

INTEGRATED MARKETING COMMUNICATIONS

IMC calls for coordinating the various promotional elements and other marketing activities that
communicate with the firms customers.

TOOLS OF IMC
ADVERTISING
It is any paid form of non-personal communication about any organization, product, service or idea by
an identified sponsor.

PERSONAL SELLING
A form of person to person communication in which a seller attempts to assist or persuade prospective
buyers to purchase the companys products or services or to act on an idea

SALES PROMOTION
Those marketing activities that provide extra value or incentives to the sales force, the distributors or
the ultimate consumers and can stimulate immediate sales.

PUBLICITY / PUBLIC RELATIONING

It refers to non-personal communications regarding an organization, product, service or idea not
directly paid for or run under identified sponsor.

INTERACTIVE MARKETING
It allows for back and forth information whereby users can participate in and modify the form and
content of the information they receive in real time.

DIRECT MARKETING
In this organizations communicate directly with target customers to generate a response and / target

reaction. THE IMC PLANNING PROCES

COMPANY CHOSEN FOR IMC ANALYSIS

Nestle
Industry: Food Processing
Categories:
Milk and Cream Processing
Production and preserving of meat
Fluid Milk Manufacturing
Liquid milk and cream production
Liquid milk and cream production
Fluid Milk

Financial Summary (As of 31-Mar-2013)

Key Ratios
Sales 5 Year Growth
Net Profit Margin (TTM) %

Company
22.87
7.68

Industry
6.97
7.06

COMPANY INFORMATION
MISSION
Build branded food business to improve quality of life by offering tasty, affordable and highly nutritional
product to our consumer. While maximizing stakeholder value.

VISION
The strategic priorities of Nestl milkpak are focuses 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, we envision Nestl milkpak to grow in the shortest possible time into the number one food
company in Pakistan with 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. We envision the company to develop an extremely motivated and professionally
trained Innovation and renovation. We aspire, as a respected corporate citizen, to continue playing a
significant role in the social and environmental sectors of the country. Most innovative and fastest
growing food company offering Products enjoyed in Every home every day.

NESTL IN PAKISTAN
Headquarters in Lahore, the company operates five production facilities. Two of its factories in
Sheikhupura and Kabirwala and multi product factories. One factory in Islamabad and two in Karachi
produce bottled water. Through its effective marketing and a vast sales and distribution network thought
out the country, it ensures that its products are made available to consumers whenever, wherever and
however.

PRODUCT CHOSEN
NESTLE MILKPAK
Milk Pack was the first tetra pack introduced in Pakistan in 1981 with green and white packaging that is
associated with Pakistans flag. It was a brand that promised natural and healthy milk. It further gained
strength when it was backed by Nestle Switzerland a well-established and reputable international brand
that bought in to it and expanded its scope and activities. It has recently highlighted the use of iron that
has been added to the milk and communicated this in its advertising and packaging. The tag line also
reads as making a stronger household.

Milk Collection
The core raw material of Nestle MilkPak is milk. Over the last Twenty Eight years, the company's prime
concern has been to improve the quality and volume of milk for UHT processing and for other milk based
products. The company successfully established its own collection system and expanded its operations
over a very large milk shed area in Punjab. Owing to this tremendous growth in the volume
of an extremely high quality raw milk, Nestle MilkPak now produces a superior quality and better tasting
UHT milk, with longer shelf life. Today, Nestle MilkPak can boast of the largest milk collection network
in the country, unmatched in size, productivity and efficiency. Milk is collected through a vast network of
village milk centers (VMCs), sub-centers and centers. At these centers, chillers have been installed to
lower milk temperature to 4C for preventing bacteria development during long hauls to the factories,
which are undertaken by a large fleet of specially insulated tankers.
Nestle gathers High Quality milk through a comprehensive strategy, intensive education program for the
farmers and the milk collection staff, up gradation of milk loading and transportation system, increase in
the chilling capacity and above all, adherence to the highest acceptance standards at all milk collection
points, including the factories.

IMC TOOLS CHOSEN BY COMPANY FOR PROMOTION OF MILKPAK

Promotion activities play an important role in re-launching any product. Increase in target market is
possible by personal selling. It includes persons in retail stores telling the benefits to potential
customers about importance of milk in standard packed form. Awareness plays the most important role.
They should taste house wives on different places. Because they are the main servers of
such kind of nutritional diets to their family members TV commercials and Bill Boards should be planned
to advertise properly.

Determining the Promotional Methods

There are various promotional methods like personal selling, advertising, sales promotions, public
relations etc. but Nestl attracted the existing customer of the imported brands and potentials
customers through its advertising campaign. In their campaign, Nestl mostly focus the small children
who are the major portion of our society and milk and such kinds of Products are basic requirement of
grooming children that the reason Nestle launched Nesvita Milk especially designed for growing children
because introduction of calcium diets in daily diet chart is basic requirement.

To remind the consumers about the product, Nestl also made some special racks for retailers and put
them on their outlets and as compared to other milk selling companies existing in the country Nestle
shows always convincing messages to realize customers that always drink milk but only I pure form .

RE - LAUNCHING
After thoroughly analyzing the reasons of presence of large number of competitors Nestle decided to relaunch it product with new packing and new statement BANAYE MAZBOT GHARANA It was an
opportunity for Nestle to capture the market in such a way that it will overcome its all the discrepancies
such as shortage, inflation based pricings which gave an opportunity to the competitors to capture the
market.

ADVERTISING (MAIN FOCUS OF MILKPAK)

Media opted for: Television, Bill Boards and Print Media.
Slogan: Good food, Good life
Theme: MILK FOR EVERY ONE
Push VS Pull: At some stores there is push strategy for the product whereas at some stores its pull.
Promise & Support: BEST MILK FOR DRINKING
Value Preposition: Best value for money.
Marketing Strategy Used: Penetration strategy supported by product differentiation
Core Benefit: Fulfillment
Functional Benefit: Makes Energy

BROADCAST MEDIA
TELEVISION
Nestle use 40% of their budget on the broadcast media. Television is the major medium used for the
advertisement. Nestle has been playing commercials on the TV since they have launched the Nestle Milk
pack. Their Ads cover all the lifestyles of the people. In their ads they have shown many situations.
Friends sitting together
Child playing
Swimmer
Families in good modes

Younger generation in smiling energy form

Family enjoying picnic etc.
In the entire above situation they have showed the importance of the pure milk, when its about athlete,
he is health conscious, when friends sitting together and having fun what they need. The main thing the
NESTLE wanted that people should trust on that Nestle is purest form of milk.

RADIO
Nestle is not only advertising on Television but they are also advertising on radio. They play the vocal ads
on Fm 100 and 101. Advertising on radio is basically for the people who are on roads.

PRINT MEDIA
In the print media Nestle is using the following mediums to advertise.

Magazines & Newspapers

Nestle advertise in both magazine and newspaper on weekly and monthly basis.
The following list of magazine and newspaper in which nestle advertise:

The News,
Nation,
Dawn,
Sunday Magazine,
The Economist MAG, Etc.

BELOW THE LINE

Below the line includes following mediums of advertisement:
Direct mail
Outdoor
Transit
Supplementary material

DIRECT MAIL ADVERTISING

It is any form of advertising issued directly to the prospect, whether through the mail, fax, online
computer services, salesperson, dealers or other means rather than through traditional mass media.
Postcards
Nestle send postcards to their home and office persons in the category of retailers and whole sellers. On
different occasion nestle send them different post cards to build long term healthy relationships so that
they can contribute in increasing the market share of their product.

Leaflets/ flyers
Nestle has placed many types of leaflets, which contain information about
Nestle Milk pack, at different outlets.
Folders / brochures
Nestle send brochures of their product to their customers through mail to make them aware of new
innovations and products. This helps nestle in getting more customers.

OUTDOOR
Nestle spend a big share of their advertisement budget on the out-door Advertisement, which includes:
Painted Billboards
MMT
Vinyl sheet
Rotary Plan

Here is an example of their billboards and rotary plan:

Nestle has placed more than 100 billboards across the roads. They have put on different skins of them,
which are showing different situations in which people are using pure wa-ter. According to the NESTLE
they use heavy outdoor advertisement to remind people about the availability of their product because
it is a product for which people never pre plan to purchase it so to motivate them for the purchase of
Nestle Milk Pack they have to place billboards. Beside this they rotate the skins of their billboards after
few months the reason for this is that people lose interest in those skins when they see it for a long time
so when they rotate them and place the new one that create the interest among the people.

TRANSIT ADVERTISING
Transit advertising is a category of out of home media that includes bus and taxicab advertising as well as
posters on transit shelters, terminals, and airports.
Types of transit advertising:

Inside cards
Outside posters
Terminal posters
Taxi / bus exteriors

Terminal posters
Nestle has placed many attractive and attention getting poster on the terminals and Stations in different
cities.

Scroll Works
Nestle is also advertising on scroll works, as we know scroll works advertise through mini vans in the city.
These van moves throughout the city when people see the scroll work those ads remind them of Nestle
Milk Pack during delivery towards the retail outlets and whole sellers.

Skins on Buses
Nestle has pasted their skins on Daewoo city buses, in this category they are advertising on certain
buses.

BILLBOARDS & COMMUNICATION PROCESS

Source
It can be assumed that all communication has a source. The source provides the purpose for
communication. This source should consist of ideas, needs intentions, information and purpose. Here in
this billboard the source is Nestle (The Company)

Encoding
Translating the source into a code requires encoding. Encoding develops the information from the source
into a code. Here in this billboard they are encoding that:
The Milk they are providing is so pure that it led you live a long healthy life because it provides you the
real energy and calciums which in turn makes a strong family and they thank the customers who had
faith in them.

Message
An encoded document would then express the purpose or message of the source, the message being
that body of information necessary for sufficient graphic communication. Here in this billboard the
message is BANAYE MAZBOT GHARANA.

Channel
The medium or carrier of the message would be the channel. It is correct to say that messages can exist
only in some channel; however, the choice of channels is often an important factor in the effectiveness
of communication. Here the channel is billboard.

Receiver
The receiver is the target of the communication. Mass Market is targeted as every-one milk in daily life in
different needs. Youngsters are prominent in the ad but they are using as symbol of fitness by using
Nestl Milk.

Decoding
The receiver must have a set of skills and abilities necessary to decode information into a usable format.
Just as a source needs encoding to translate the purpose into a message, the receiver needs a decoder to
understand the message. Here in this billboard the decoding is:

Natural Beauty
Healthy & Attractive Skin
Fresh
Energetic
Bright Faces

Noise/Interference
Unfortunately, this tidy package of communication tends to break down when subjected to the nemesis
of all communication environments, interference. Interference is the undesired outside influence that
tends to prevent the completion of effective communication. It is capable of occurring at any level or
stage in the process. The goal of any communication is to eliminate or minimize interference.
In case of billboard we can only consider the traffic signal as source of noise.

Response/Feedback:
The effectiveness of a communication is assessed when the source receives response. The response can
be in many forms. Hopefully, the response or feedback is premeditated and desirable. The feedback can
be a tangible product of the communication and can lend itself to easy evaluation.
We like to buy Nestls Milk because its purest form of milk.

SALES PROMOTION
As the main focus of the companys promotional campaign is advertising, sales promotion strategy is also
used somehow, along with excessive advertising, discounts and incentives are given to the customers as
well as the retailers and whole sellers on the following occasions especially.
Ramadan offers
Buy one get one free
Bundle packaging
As the above reason is the dearest occasion and people buy much milk and also tend to look for more
offers in the milk sales, therefore for boosting up sales, sales promotional discounts and bundle
packaging is available in these precious occasions.

INTERACTIVE OR INTERNET MARKETING

As the main focus of the firm is advertising, sometimes, especially on Eid and other important Muslim
occasions, internet advertising is done on a small scale in which pop-up come forward on kids websites
and play station downloads. These create interest and fun in kids and promote the brand.

PERSONAL SELLING
Initially when Milkpak was launched, it was sold door to door as well to create awareness in the country
people and especially in rural areas to drink pure milk without any impurities. But that was done for a
short time period, as the company is producing a normal consumer well therefore; it had its basic push
on massive advertising using almost all form of advertising.

BUDGETING
S.R #
1
2
3
4
5
6
7
8
9

Total budgeting of advertising campaign

NATURE OF WORK
Radio, T.V, Billboards Ad Making
30 days Ad running on HUM TV

30 days Ad running on GEO TV

30 days Ad running on Cartoon Network
30 days ad on Radio in 5 cities 24 times per day
Bill Boards
Small boards on Roads
Print Media

COST (PKR)

200,000.00
30,000,000.00
3,1400,000.00
5400,000.00
500,000.00
212,50000.00
525,000,00,00.00
18,26,6904.00

Other Communication Tools

Key Chains
Van
Busses Skin
Calendars
TOTAL BUDGET PAK RUPEES

150,00,000.00
1,750,000.00
3,750,000.00
3000,000.00
5,380,516,904

Budget for Print Media

As for Advertising plan the print media is one of the media which is being selected. For that the
newspapers like DAWN, The Nation, The News, Jang, Express, and Nawa-e-Waqt are the newspaper on
which the advertisement will be shown.

The below table provides the whole information about their rates related to front page and the size of
advertisement on the newspaper like 27*4. Per/day charges of the respective newspapers also provided
and then the weekly charges for the front page ad also calculated. In the end the budget of the whole
month for newspaper advertisement is calculated.
NEWSPAPER FRONT
DAWN

SIZE
20x3

20 X 7
FULL PAGE
JUNG

20x3

20 X 7
FULL PAGE
EXPRESS

20x3

20 X 7
FULL PAGE

FRONT

WEEKDAY
BACK

PAGE-2

331,500
459,000
NA
564,300
1,015,740
NA
616,320
1,109,376
NA

229,500
348,840
NA
480,600
865,080
NA
462,240
832,032
NA

163,200
257,040
1,028,160
396,900
714,420
2,857,680
385,200
693,360
2,773,440

Advertisement Rates of Newspapers:

S.R no
1
2
3

Total Expenditure charged monthly of giving ad in newspaper:

Name.Of
No.Of
Size of Ad
Rate.of
Amount
Newspaper
Ads/month
page/day
charged
monthly
Dawn
8
27x4
459,000
3,672,000
Jung
10
27x4
1,015,740
1,01,57,400
Express
4
27x4
1,109,376
44,37,504

Billboard rates
Size: 2700 Sq. ft
Rent for 1 month in A1 area: 850,000.00
Total No. of Billboards in Major 5 Major Cities Karachi, Lahore, Islamabad, Faisalabad and Peshwar are
25.
Total Cost: 21,250,000.00

Fm rates for ads

Nestle is not only advertising on Television but they are also advertising on radio. They play the
vocal ads on Fm 90. Advertising on radio is basically for the people who are on roads; these ads would be
played 24 times a day on hourly Basis in form of Time Check

Total Cost per city:

100,000.00
Total Cities covered: 05

Total Cost:

Karachi
Islamabad
Lahore
Faisalabad
Peshawar
500,000.00

CONCLUSION
To put the pre-going discussion in a nut-shell, It can be safely be ventured to opine that our company has
much potential at that time but if we use the above strategy in proper manner we easily conclude that
we will be able to lead the companies in the Pakistan and abroad. However there are some discrepancies
in such sectors so we can realize that all the features that are involved directly or indirectly in the
production are working properly at their positions.
Nestle transparency in the Milk price and the marked increase in the fresh milk delivered to its factories
is forcing the hands of competitors to progressively adapt to new imperatives. As for Pakistani customers
but in all over the world. Speaking for Nestle Milk Pack is the evident that the company has benefited its
regular customer on the basis of quality and originality. Thus the story of Nestle in Pakistan provides a
good example of successful joint venture between local companies Milk Pack Ltd. And a foreign company
Nestle. It is also an example of win win-partnership between a company Nestle Milkpak Ltd and all of its
suppliers in raw material.

In addition Nestle transparency in the milk prices and the marked quality increase in the fresh milk
deliver to its factories are forcing the hands of the competitors to progressively adapt to the new
imparities.

Speaking for Nestle milkpak it is evident that the company has benefiting for the spectacular
development of its factories in the milk district sales of finished products in UHT milks , yogurts ,milk
powder ,infant formulas, milk base cereals reached in 2004 compared to sales.
After taking an overview of the strategies of Nestle we can easily understand the successful journey of
Nestle Milkpak in all factors of advertisement and proper awareness about its products to the customers
before launching and after launching. Also evaluates the response and feedback of customers on basis or
its advertisement research.