Competitive Landscape:

Nestle Pakistan has continued to grow over the past years with a 9% growth between 2015 and
2016. In terms of the competition, Nestle has established brands in a wide number of categories
and competes with many other FMCG companies such as Engro, Unilever, Haleeb Food, Pepsi
Co. etc. It is important to identify the various categories in which Nestle competes in which are:

Ambient Dairy
Chilled Dairy
Juices
Bottled Water
Culinary & Food
Baby Food
Breakfast Cereals
Coffee

In terms of the dairy business Nestle has an estimated 50% market share with strong competition
from both Nurpur and Engro. The tea whitener business has continued to grow with each firm
trying to compete on price and SKU size.

In terms of the juice category Nestle had established a value share of 40% due to the widespread
popularity of its Nescaf brand. In this category it faces strong competition from Shezan, Pepsi
and Coke. Coke has recently launched itself in the juice category with the brand name Cappy
and this will likely give new competition to the Nestle Fruita Vitals brand.

For the coffee segment, Nestl led coffee sales in 2016, recording a retail value share of 50% due
to the success of its Nescaf Classic, Nescaf Gold and Nescaf 3-in-1 brands within the mass
consumption segment. It is important to note here that Pakistani consumers do tend to substitute
tea for coffee and therefore it would be accurate to assume that within this category Nestle does
face strong competiton from the likes of Unilever and Tapal.

The one last category that contributes significantly to the Nestle Portfolio is its bottled water.
Nestle Pakistan led sales in 2016, recording a value share of 52% due to strong consumer brand
loyalty for the companys Nestle Pure Life brand. Aquafina from PepsiCo and Kinley from Coca-
Cola have been successful to some extent in gaining sales share from Nestl in the past, although
Nestle continues to be the market leader.

It can be seen that despite intense competition within each category, Nestle has continued to
establish itself as a market leader with consumer engagement thorough product availability &
visibility along with product innovation.