Sales Management

NESTLE

Group Members
M.Arslan Jan

BBA-02103-143

INTRODUCTION OF NESTLE

In the 1860s Henri Nestl, a pharmacist, developed a food for infants.

In early 1900s, the company was operating factories in the United States,
Britain, Germany and Spain.

In 1905 Nestl merged with the Anglo-Swiss Condensed Milk Company.

Six worldwide corporate brands, Nestl, Nescafe, Nestea, Maggi, Buitoni

and Friskies

INTRODUCTION OF NESTLE PAKISTAN

In 1981 nestle opened his first production unit of UHT in sheikhupura.

1988, it had expanded its operation and was also producing butter, cream, desighee all under the brand name of MILKPAK and juice drinks under the brand name FROST.

Now nestle is running successfully in Pakistan and giving the job opportunities more
than any multinational organization.

Selection of products

We have selected two major products among the diverse product line of
nestle.

Nestle pure life (mineral water)

Milk Pack

In Lahore, Nestle Pure Life has 69% shares, Aquafina has 13% and Cool
water have 11% and remaining 7% are kept by other companies. 55%
of Nestle Milk Pack in LHR total market As in Milk industry Haleeb got
20%,olpers 20% and 5% others.

Yearly Base Sales Strategies

Organization Structure

Recruitment

Training and motivation

Compensation

Organizational Structure

Recruitment

Competencies are check while hiring applicants.

Job specifications are mentioned to the applicants, applicants are selected on the bases
of their job skills.

Nestle uses the medium of temp recruiting agencies on the contract bases.

At the time of interview the panel is set by the HR department of nestle which took
interviews of the short listed applicants.

Training

Literacy training-to upgrades essential literacy skills, especially for workers

who operate new equipment

Nestle apprenticeship programs are also provided to employees to

enhance their working skills.

Training Programs-on issues ranging from technical, leadership, and

communication and business economics.

Motivational Techniques

The Company operates a recognized provident fund for all its regular employees,
excluding expatriates.

Nestle implement the SH&E (Safety Health and Environment Policy) Management
System at all workplaces and incorporate all applicable SH&E Standards.

A list of other benefits working as motivation factors

among the employees of Nestle Pakistan:

Higher salary

Job Security

Gratuity

Bonuses

Old age benefits

Residence facilities

Transportation

Health and safety

Rewards in Nestle:

Performance Driven

Competitive

Inclusive

Flexible

Benefits at Nestle

Leave-Personal & Medical (fixed no. per year)-

Children Education Assistance Scheme-

Provident fund-

Retirement Gratuity Scheme.

Group Insurance & Accidental Insurance Scheme.

Conveyance Reimbursement Scheme.

Group Insurance & Accidental Insurance Scheme.

Conveyance Reimbursement Scheme.

Long Run Strategies

Logistics:

Distribution Network

Sales Forecasting

Distribution Network

Vertical Distribution Channel (Pull Strategy):

Conventional Distribution Channel

(Push Strategy)

Sale Forecasting

Nestle prefer the quantitative technique as well as the qualitative technique based on
conditions (newly launched products for qualitative and existing product for
quantitative techniques) for the sales forecasting because it is dependent on the
historical data of sales.

Day to Day Strategies

Techniques

Personal Selling

Direct Marketing

Sales Promotion

KAM

IT

Exhibitions

Personal selling

A direct Vendor Selling Activity was coordinated and carried out during the summer
months of June, July, and August 1999 in Lahore. A team of vendors, clad in branded Tshirts, caps and jackets, sold chilled 0.5 liter bottles to traveling customers on all major
intersections. The brand got great mileage out of this innovative idea of personal selling
in terms of brand awareness, paid trial, image as well as real sales.

Direct Marketing

At nestle distribution of products, information and promotional benefits

to target the consumers through interactive communication in a way
which allows response to be measured

Posters

Billboards

Broachers

Recreational campaign (in different universities colleges, stalls at malls)

Sales Promotion
Trade Promotion:

They achieve widespread distribution of new brand.

Nestle display the excess stocks on retailers shelves.

Nestle achieve required display levels of product.

They encourage greater overall stockholding of a product.

Nestle also encourage support for overall promotional strategy.

Personal Promotion
Personal Promotion:

Extension in new product line.

Encourage the retained customers to buy the slow selling products.

Nestle develop the new options for sales people and KAM customers.

Develop new sales skills to the sales persons by giving them up to date training and by
giving them compensations

Key Account Management

Key account management is an approach to build sustainable business by

first looking from the lens of the customer.

Following are the nestle KAM status holders:

HYPERSTAR

MAKRO

METRO

Pot Puri

Alfateh

HKB

Victoria

Influence of IT in Nestle
Now a days IT is very beneficial for the success of business in modern era. Nestle use IT in the
following areas:

KAM is listed by software

Inventory system

All the salesman are inter connected to the main server (they are centralized).

Nestle also use IT in sales forecasting

It also uses IT in recruiting process

Nestle also uses IT in Office work (all the employee daily task is uploaded in main head
quarter server from any region.

Exhibition
Nestle Business expos:

Various stalls for new product are exhibited at

Pearl Continental (Lahore)

Marriot (Islamabad, Karachi )

Royal Palm (Lahore)

According to the segments which nestle have divided.

Nestle aware customer about the social responsibility, and the

environmental responsibility. Nestle pursue the existing customers to have
a status of KAM customers. Acquire new customers .

Conclusion
Problems according to the group analysis

The company should make huge expenses on advertisement in rural areas

of Pakistan to create awareness in the mind of local area's people. The
company should held seminars and meeting for the promotion of Nestle
Pure Life.

Strategies Recommended For

Rectifying Problems

They should increase their product quality as now a day they are facing
problem of impurity of their products.

they have to do more, making their strong position in market because

when you lose your image in customers eye then it is difficult to renew
their image.

Any Questions ?
Questions / Answers

Thank you !