Virtual University of Pakistan

Evaluation Sheet for Dissertation

Spring 2010

MKT619: Final Project (Marketing) Credit Hours:3

Evaluation Criteria Result

Student’s Name: M. SANA ULLAH Proposal Valid
Final Project Fail
Student’s ID: MC080400740 Written Work Status Fail
Presentation & Viva Voce
Supervisor: ______________________
Final Result
The improvement require in project proceeding

The summary should have to be based on analysis

The conclusion and recommendation should have to be aligned

with your objectives.

Note:

For the above mentioned grounds, your project needs

improvement. You are required to fulfill the deficiency and
submit the improved project as soon as the new assignment
will be opened.

FINAL PROJECT

ANALYSIS OF DISTRIBUTION STRATEGIES OF NESTLE

A REPORT
SUBMITED TO THE DEPARTMENT OF MANAGEMENT SCIENCES,
 VIRTUAL UNIVERSITY OF PAKISTAN
IN PARTIAL FULFILMENT OF REQUIREMENTS FOR THE DEGREE
OF MASTERS IN BUSINESS ADMINISTRATION

SUBMITED BY

MC080400740
M. SANA ULLAH

VU
VIRTUAL UNIVERSITY

DEPARTMENT OF MANAGEMENT SCIENCES,

VIRTUAL UNIVERSITY OF PAKISTAN
 Acknowledgement

Hare on the completion of my work I would like to acknowledge many of many

friends and all those who helped me in the data compilation and data gathering. I
am also thankful of my friends who encouraged me to complete this work. I am also
thankful of my family who provided me the environment for my studies and helped
me to compile all data.

Page#1
 Executive Summary

it should have to be in paragraph format rather than heading

BACKGROUND:

Marketing channel distributions are the most important one which a marketing manager
faces. Most of the time companies pay very little attention toward distribution channels.
In fact it is very dangerous situation. As for as the distribution channels are concerned
there are four major issues,
• Nature of the distribution channel.
• How do the channel firms interact and organized to do the channel work.
• Major problems faced by any company in management the distribution channels.
• Importance of the physical distribution in customer satisfaction.

As a set of activities are involved in the process of the marketing a product or service
available for use or to be consumed by the customer or the business user.
Every product or service weather a mobile, a car or any food product must be somehow
available to billion of the customers. This objective is only possible with an effective and
organized distribution channels.

Basic role of the marketing intermediaries is to transform the assortment of the product
made by producer into the assortments wanted by the consumers. Producer made narrow
assortments in large quantities, but the consumers wants broad assortments of the product
but in small quantities. In distribution large quantities are purchased from the producers
and are broken down into smaller quantities and broad assortments wanted by the
consumer. This is the major impact of the distribution channels. Distribution makes an
important role in matching supply and demand.

PURPOSE:

As the distribution channels and strategies of the Nestle Milk pack are under study, after
completion of the work distribution strategies of the Nestle will be fully known and after
compiling the data strengths and weaknesses of the distribution strategies of the company
will be concluded. Project will also give valuable comments to the persons involved in
the process.
Main purpose of this research is to made it clear the concept about the research work and
as well as about the process of the distribution. As the distribution is one of the very
important are sod the marketing so it is very important to be understand.

METHODOLOGY:

Primary data will be collected by the distributors and consumers.

Both are main stakeholders of the company and are very important so must be focused.
Page#2
Secondary data will be collected from the official
website of the company as well as from the various books having standardized written
material about the various distribution techniques. For data collection and field work
questionnaire is used. Because it is easy and quick way of data collection.

Findings of Study:

Result of the study was very interesting. It is concluded that mostly the consumer of
nestle is highly satisfied with the availability and quality of Nestle products. Consumers
overall reaction was very positive. Some of them were concerned about the price
increases by Nestle Pakistan but were satisfied with the quality of products offered by
Nestle. As for as the retailers are considered they were satisfied but was little concerned
about the return of expiries and company strict policies about supply and discounts.
( these things were not mentioned in the questionnaire, Retailers personally told me when
I went to get the questionnaire filled from them). Overall Nestle is doing good job in
distribution and is filling the demands generated by the sales and marketing teams.
Page#3

TABLE OF CONTENTS
Page Number
Acknowledgement………………………………………………1

Executive summary…………………………………………….2

Chapter #1
1.1………………………………………………….4
1.2…………………………………………………..4
1.3………………………………………………….5
1.4…………………………………………………….5
1.5……………………………………………………5
1.6…………………………………………………….5
Chapter #2
2.1………………………………………………….7
2.2 ………………………………………………….8
2.3…………………………………………………..8
2.4…………………………………………………..9
2.5…………………………………………………..9
2.6…………………………………………………..9
2.7 …………………………………………………9
2.8…………………………………………………..10
2.9…………………………………………………..10
2.10…………………………………………………10
Chapter #3
3.1……………………………………………………10
3.2……………………………………………………12
3.3…………………………………………………….12
Chapter #4
4.1…………………………………………………….13
4.1.1………………………………………………….13
4.1.2…………………………………………………..13
4.2…………………………………………………….13
4.3……………………………………………………13
4.3.1…………………………………………………..13
Chapter #5………………………………………………………..14

Chapter #6
6.1…………………………………………………..21
6.2…………………………………………………….21
6.3……………………………………………………21
 CHAPTER#1: Introduction

1.1: Introduction of the Project no proper introduction of project it should have to

be in detailed

Every student of Marketing is always very keen to

know the various practical aspects of the marketing techniques. As distribution is one of
the important areas in marketing and this project is on “Distribution strategies of the
Nestle Milk Pack”. This is a very broad area to be worked because distribution is one of
the very important pillar of the marketing and It will not only help to clear understanding
about the various distribution techniques but also it will help to generate new business
ideas regarding the distribution.

1.2 Background of the project

Marketing channel distributions are the most important one which a marketing manager
faces. Most of the time companies pay very little attention toward distribution channels.
In fact it is very dangerous situation. As for as the distribution channels are concerned
there are four major issues,

• Nature of the distribution channel.

• How do the channel firms interact and organized to do the channel work.
• Major problems faced by any company in management the distribution channels.
• Importance of the physical distribution in customer satisfaction.

As a set of activities are involved in the process of the marketing a product or service
available for use or to be consumed by the customer or the business user.
Every product or service weather a mobile, a car or any food product must be somehow
available to billion of the customers. This objective is only possible with an effective and
organized distribution channels.

Basic role of the marketing intermediaries is to transform the assortment of the product
made by producer into the assortments wanted by the consumers. Producer made narrow
assortments in large quantities, but the consumers wants broad assortments of the product
but in small quantities. In distribution large quantities are purchased from the producers
and are broken down into smaller quantities and broad assortments wanted by the
consumer. This is the major impact of the distribution channels. Distribution makes an
important role in matching supply and demand.
Page# 4

1.3 Company’s introduction

Nestle Pakistan, previously known as Nestle Milkpak is Swiss based food company.
Nestle is one of the largest food company of the world and largest food company of
Pakistan. Nestle was introduced in the Swiss market by Henri Nestle in 1875. Although
some of nestle products already exist in Pakistan market when it started its business in
Pakistan in 1980 by the merger with Milkpak. Nestle has its two main production units in
Pakistan one in Sheikhupura and second at Kabirwala. Apart from these two units one in
Islamabad and other in Karachi are involved in the water business. At time Nestle is not
only producing a variety of food products like milk dairy, chilled dairy, Beverage, Baby
food, Cereals, chocolates, and confectionary but also Juices and mineral water. Nestle
Pakistan has its own largest milk collection system and is also doing business in
Afghanistan. (Controlled by Nestle Pakistan).
-
1.4 List of competitors
Prepare list of competitors
There are many competitors of Nestle Pakistan. In Milk and Juice sector it is Haleeb and
Olpers. In water Nestle is competing with some multinational companies like Pepsi and
Coca Cola along with lot of National companies like Gourmet, Sufi etc. Nestle is also
providing infant nutrition. IN infant nutrition it is competing with companies like
Morinaga, Meiji Biomil etc.

1.5 Objectives of the project

Objective of my project is,

• To find critical success factor in the strategy for distributional channels of

organization.
• How distribution channel can be improved.
• To get a grip on the basic distribution issues and basic knowledge.
• To see the impact of good distribution setup on consumer behavior.

1.6 Significance of the project

Outcome of the work: As the distribution channels and strategies of the Nestle Milk
pack are under study, after completion of the work distribution strategies of the Nestle
will be fully known and after compiling the data strengths and weaknesses of the
distribution strategies of the company will be concluded. Project will also give valuable
comments to the persons involved in the process.
Page#5
BENEFITS OF WORK TO STAKEHOLDERS OF NESTLE:

1. Benefits to Me.

There are many benefits of this research work for me and that is it will clear
my own concept about the research work and as well as about the process of
the distribution. As the distribution is one of the very important are sod the
marketing so it is very important to be understand.

2. Benefits to Consumers.

There are some benefits to the consumers also and this is that company may work on the
various areas which I will identify and it may result in the improvement of the overall
distribution system. Consumer wants a good availability of the product in the area and
needs product when they want. It is only possible with a good distribution strategy by the
company.

3. Benefits to Distributors.

Distributors may also be benefited by this research work and it is because by the better
management of the distribution system they may not only improve the overall business
but also may improve there good will. Good will is a very important thing for the
distributor because it may help him to get even more companies as well as to improve his
business and increase the overall profitability of the business.

4. Benefits to Retailers.

Retailers are also important stake holder. He also plays his part and wants to improve the
things and wants improved things. With an improvement in the distribution strategy
retailer will also be beneficial and will not only get improved supply but also work may
lead to the better profitability by better returns and expiries management by the retailer.

• Contribution to the solution or any problem solving:

I am also hopeful that I will be able to give valuable comments on the need to
improve areas of the company. It is important thing that beside its strengths every
organization has certain weaknesses and I will have a critical analysis of the complete
process and will be in the position to contribute in the improvement of the weak areas
by identifying these.
 Page#6

• Things which could be improved as a result of the study:

I am very much hopeful that I will be able to analyze the distribution setup of the Nestle
and to find the strengths and area of improvement in the company. I will have a
comprehensive discussion of the various areas with the distribution manager of the
company and will give him the valuable comments about the company distribution. It
might help them to improve some of their weak areas. It will also improve my own
distribution skills.

• Implementation of the results:

Results of the study could be directly implemented in the Nestle and could give
guidelines to various other businesses to have proper distribution setups. I am also
very motivated to give the adequate guidelines to the company and will also study the
process in so detail that company may find its area of improvements in the
distribution. In suggestions I will give good guidelines to the company with a new
improved setup.

CHAPTER#2 Distribution strategies of the company

2.1 Marketing Mix

Marketing is the process that revolves around the customers and in order to meet the
requirements of the customer. Marketers formulated and design the marketing mix that is
also known as 4P’s i.e. product, price, place and promotion, As for as Nestle is concerned
it is found to be doing well in this regard.

PRODUCT: Its product range is good varying from the milk dairy, chilled dairy,
Beverage, Baby food, Cereals, chocolates, and confectionary but also Juices and mineral
water.

PRICE: Nestle is offering a good and affordable prices of the product. Nestle increases
the price of products from time to time to increase the profit and to meet the increases
expenses because of inflation. Nestle do conduct the market survey and other studies to
see the affordability of the customers and to estimate the limits of pressure a consumer
my bear.
Page#7

PLACE: Nestle is mainly a consumer based food company. Its products are available at
all stores and medical stores, bakeries, food chains, Departmental stores. Main objective
of the company is to provide the product as close as possible to all customers.

PROMOTION: Nestle has a strongest consumer services department, sales promotion

team and sales team. Distributors are very effective and sales and marketing teams are
there for effective work of the distributors. Products are usually placed well and media,
newspapers and radio is used for the communication of the advertisement.

2.2 Marketing Segmentation Strategies it is not segmentation strategies

AS for as market segmentation is concerned Nestle has divided its business into many
areas and a separate sales force is working on the areas. Segmentation involves
• Water business
• Juices
• Hotels and Airports
• Milk and other dairy products
• Baby food and cereals

Nestle has developed products according to the power and affordability of the customers.
For example it has developed special products according to the demand of the air
industry, Hotels etc. Many of the products are there just to get the maximum business out
of the different classes. For example cerelac is available in sachet for poor customers.
Baby milk varies from Lactogen of 250 PKR for poor and NAN of 550 PKR for
affordable class. So segmentation is there in product range as well as target markets.

2.3 Target Marketing Strategies

Nestle is doing focused working in different markets. They have good analysis of the
customer and always focused the customer according to its potential. If the focused are is
of low class then the products preference will of economical products like Milkpak,
Quarter Juices, and Lactogen etc. If area is well developed and rich peoples then there
will be more focused on premium products like Nesvita Milk, NAN, creams lit juices etc.
Benefit is very obvious that to get maximum business according to the potential of the
customer.
Page#8

2.4 Distribution objectives of the company

Distribution objective of the company is to provide rite product to rite customer at rite
time. Company has focused the markets according to its potential and is just doing
focused working. Nestle has a good distribution setup. There are many distributors in
every city to meet the demands of the markets. In all stores distributor visits once a week
or may go twice a week if the store is more potential or there is more fast turn over. All
consumers are getting the desired products as near to them as possible. Company has
focused a lot on the availability of the products on almost all possible outlets because
Nestle gives importance to availability.

2.5 Channels of Distribution

Distribution is indirect and will the help of distribution channels. Main reason behind is
that Nestle has a very large product range and obviously it is not possible for the
company to directly sell it to the consumer. SO nestle has developed a well established
distribution network in the market to fulfill the demands of the consumers.

2.6 Distribution Coverage

Distributors have good coverage and it goes door to door to all retailers. Nestle is the
company which has one of the broadest distribution system in the market and the main
reason behind is the nature of the products as well as the range of the products. Total
number of the outlets which is covered by the distributor is very large. Many retailers are
doing purchases from the whole sellers also which thus are also indirectly helping
company in the availability of the products.

2.7 Degree of Control Desired By the company

Nestle has a good control on the distribution system and the movement of the products.
Nestle has a good grip in the market as well. It is very necessary to have a good solid grip
on the market and distributor because the business is not so easy. If the company does not
have a good follow up in the market it may loose the market gradually and obviously the
business as well. For this nestle has a good sales force which is well trained for this
purpose mainly TI are responsible which are reporting to Area sales managers. These two
keep a close eye on the market as well as various activities of the distributors. This not
only maintain the nestle goodwill in the market and retailers. It is because retailers can
easily register their complains to company.
Page#9

2.8 Channel management of the company

Company is managing its channels with the sales force of the company, distribution
department, supply chain and marketing departments. All are playing its part in the

distribution management. Keeping close follow up to the distributor helps in the

effective management of the distribution system. Among sales force Territory In charge
are responsible to look after the distribution they are reporting to Area sales managers
which see the issues of the system and resolves them Sales force normally also gives their
recommendations to improve system and also to see the issues if there it comes.

2.9 Relationship marketing in channel of the company

Nestle is in the market and is doing well in the business. Distribution system of the
company is really doing well to provide such a large number of the products to the final
consumer. It is very obvious that relationship of the company with the consumers as well
as with the distribution and retailers is very important because no company can exist in
the market if it is not taking the responsibility of the products it has soled and many other
such factors. Nestle has done a good job by establishing a very effective consumer
complain system and customer center. Nestle usually responds well to all consumer
complains and tries to resolve it as early as possible.

2.10 Vertical marketing system of the company

Nest le has a good distribution system and it is doing it with the help of the distributors.
Nestle gives supply to the distributors which gives the supply to the retailers as well as to
the whole sellers. Retailers thus have two options in Nestle that it can purchase directly
from the company distributor as well as from the whole sellers and the market. This will
not only increases the effectiveness of the distribution system but also improves the
coverage on retailers.

CHAPTER#3 Competitor Analysis Of the company

3.1 Introduction of the competitor firms

Haleeb is a competitor of the Nestle in dairy products. Haleeb has a manufacturing unit
on the Multan road and produces Milk, Butter and Juices. Milk and Juices are directly
competing with the Nestle Pakistan. Haleeb is basically national company and has a very
strong name in the Pakistan market.
Page#10
3.2 Marketing mix

PRODUCT: Among products of the Haleeb are included Haleeb Milk, Butter and Juices.
PRICE: It is perception that multinational companies charge higher prices and have a
better quality vs. Local companies. But Haleeb has done a good work to establish its
products as good quality products and Prices of Haleeb are also nearly equal to all
available brands.
PLACE: Haleeb is doing good work in promotion of the products. His distribution
strategies are also very good for milk and juices. As Haleeb products have very good
acceptance among the public they also need a good availability in the market. Haleeb has
done the job very effectively.
PROMOTIN: Haleeb is being promoted by media, both electronic and print. They are
successful in building good image of their product among large number of the customer.

3.3 Market segmentation strategies

Although Haleeb does not have very large number of the products still they have divided
the product according to the requirements of the market. Milk is widely available but in
juices and butter they have selected the market and are giving good market segmentation
in this. Juices are available at main stores and in those areas where generally peoples are
affording and can purchase the products. Reason of poor segmentation of the milk
product is that it is widely promoted and well accepted in the market so needed good
availability.

2.3 Target Marketing Strategies

For milk almost whole market is targeted and there is widely available in the market.
Haleeb is promoting it with full enthusiasm and doing their best for it. Haleeb is
successful in it in many regards. IN juices the main objective is to target little affording
class because they do not have small pack in juice and are promoting lit pack only which
is little out of pocket for poor peoples.

2.4 Distribution objectives of the company

Distribution objective of the company is to provide widest availability of the milk and
butter in the market because of their good acceptance and affordable prices. As for as
juices are concerned they are not widely available because of selection in the customers..
So objective is obvious provide the product where are needed and accepted.

2.5 Channels of Distribution

Distribution is indirect and involves the help of the distributor for this purpose.
Distributors are present in almost all cities and are doing the availability of the products.
Page#11

2.6 Distribution Coverage

Distribution is intensive for Milk but selective for juices. It is very obvious that it is
because of the need of the market and demand of the product.

2.7 Degree of Control Desired By the company

Company is doing well for milk and has established the brand in the market. For an
effective control over the market Haleeb is also having a sales force which not only keeps
an eye on the distribution business but also on the movement of the product in the
market.

2.8 Channel management of the company

Company has a sales focrece and also a marketing and sales department which controls
the product movement in the market as well s the various functions of the distributor
which are mainly involved in the availability process of the product. Supply chain will
ensure the continuous availability of the product to the distributor and also ensure the
availability in the market.

2.9 Relationship marketing in channel of the company

A good market is only that where there is good relation among the chain involved in the
business. Haleeb is also doing well. Their relation is not as strong as that of Nestle
because nestle has a long list of the products and more visibility in the market as
compared to Haleeb but with its limited beget Haleeb is doing well and customers are
satisfied with the products and company. Especially Haleeb has a strong penetration in
the hearts of customers.

2.10 Vertical marketing system of the company

Haleeb is doing vertical marketing and getting the help of the distributor. IT is obvious
that Company can not ensure the supply in its own because direct supply by company is
not possible in such large number of outlets. Distributors are doing the process.

Page#12
CHAPTER#4 METHODOGY

4.1 Data collection sources

4.1.1 Primary sources

Primary data is collected by the distributors and consumers.

Both are main stakeholders of the company and are very important to be focused.

4.1.2 Secondary sources

Secondary data is collected from the official website of the company as well as from the
various books having standardized written material about the various distribution
techniques

4.2 Data collection tools

Questionnaire is used for this purpose..

This tool is selected because the questionnaire gives a handsome amount of information
because usually we have reasonable time to make an adequate questionnaire to be used.
So it is very comprehensive and person filling the questionnaire also feel free to fill the
questionnaires. It was easy and comprehensive.
You did not describe the sampling frame and target population

4.3 Sampling
4.3.1 Sample Size

120 respondents will constitute the sample size. Respondent will be the wholesalers and
retailers. I will also incorporate some persons from the public to get the feedback from
them. It will give a comprehensive data to be analyzed.

4.3.2 Sampling technique

Simple Random Sample is used. Study was conducted through a sample of 120
respondents. This was selected mainly because of its simplicity and easiness to gather
data very quickly.
Page#13

CHAPTER#5 Data processing interpretation & analysis

There must be graphical representation along with interpretation

Univariate table for Gender

Table#1: Gender of Respondent

Gender Frequency Percentage

Male 74 63
Female 44 37
Total 120 100

No interpretation and graphical presentation

.
Univariate table for age
Table#2: Age of Respondent

Age Frequency Percentage

Under 20 38 32
21-40 82 68
41 plus 0
Total 120 100

Table for Nestle presence in Market

No interpretation and graphical presentation

Table#3:

# Respondent Percentage
Strongly Disagree 3 3
Disagree 0 0
Neutral 5 4
Agree 75 63
Strongly Agree 37 30
Total 120 100
Page#14

Product Availability when demanded

No interpretation and graphical presentation

Table#4:

# Respondent Percentage
Strongly Disagree 1 1
Disagree 4 3
Neutral 11 9
Agree 64 53
Strongly Agree 40 34
Total 120 100

No interpretation and graphical presentation

Table for Satisfaction with service

Table#5:

# Respondent Percentage
Strongly Disagree 35 29
Disagree 75 62
Neutral 3 3
Agree 7 6
Strongly Agree 0 0
Total 120 100

No interpretation and graphical presentation

Table for Recommendation of Nestle Products

Table#6:

# Respondent Percentage
Strongly Disagree 0 0
Disagree 2 2
Neutral 5 4
Agree 74 62
Strongly Agree 39 32
Total 120 100

No interpretation and graphical presentation

Table for Experience with Nestle

Table#7:

# Respondent Percentage
Strongly Disagree 0 0
Disagree 5 4
Neutral 20 17
Agree 53 44
Strongly Agree 42 35
Total 120 100

No interpretation and graphical presentation

Table for Location for Nestle distributor is Good

Table#8:

# Respondent Percentage
Strongly Disagree 0 0
Disagree 3 2
Neutral 10 8
Agree 64 53
Strongly Agree 43 37
Total 120 100

No interpretation and graphical presentation

Page#16

Table for Nestle product accessibility

Table#9:

# Respondent Percentage
Strongly Disagree 0 0
Disagree 0 0
Neutral 2 2
Agree 48 40
Strongly Agree 70 58
Total 120 100

No interpretation and graphical presentation

Table for response of sales persons

Table#10:

# Respondent Percentage
Strongly Disagree 5 4
Disagree 10 8
Neutral 17 14
Agree 65 55
Strongly Agree 23 19
Total 120 100

No interpretation and graphical presentation

Table for Nestle persons Help
Table#11:

# Respondent Percentage
Strongly Disagree 7 5
Disagree 13 9
Neutral 12 8
Agree 61 54
Strongly Agree 27 24
Total 120 100
No interpretation and graphical presentation

Page#17

Table for Nestle products availability vs. competition

Table#12:

# Respondent Percentage
Strongly Disagree 2 2
Disagree 19 14
Neutral 12 8
Agree 63 51
Strongly Agree 30 25
Total 120 100

No interpretation and graphical presentation

Availability vs. sales

Table#13:

# Respondent Percentage
Strongly Disagree 2 2
Disagree 7 5
Neutral 3 2
Agree 56 47
Strongly Agree 52 44
Total 120 100

No interpretation and graphical presentation

Purchases Nestle because of availability

Table#14:

# Respondent Percentage
Strongly Disagree 0 3
Disagree 18 13
Neutral 10 7
Agree 63 54
Strongly Agree 29 23
Total 120 100
No interpretation and graphical presentation

Page#18
Table for Nestle distribution System is best
Table#15:

# Respondent Percentage
Strongly Disagree 5 3
Disagree 12 9
Neutral 0 0
Agree 75 64
Strongly Agree 28 24
Total 120 100

No interpretation and graphical presentation

Prefer Nestle because of availability

Table#16:

# Respondent Percentage
Strongly Disagree 18 14
Disagree 77 68
Neutral 9 6
Agree 11 9
Strongly Agree 5 3
Total 120 100

No interpretation and graphical presentation

Nestle should improve its distribution

Table#17:

# Respondent Percentage
Strongly Disagree 5 3
Disagree 32 25
Neutral 5 4
Agree 72 64
Strongly Agree 6 4
Total 120 100

No interpretation and graphical presentation

Page#19
Observe Nestle products at store
Table#18:

# Respondent Percentage
Strongly Disagree 12 9
Disagree 18 15
Neutral 9 7
Agree 54 47
Strongly Agree 27 22
Total 120 100

No interpretation and graphical presentation

Will you like to follow Nestle Distribution setup

Table#19:
 # Respondent Percentage
Strongly Disagree 1 1
Disagree 6 4
Neutral 13 9
Agree 72 63
Strongly Agree 28 23
Total 120 100

Summary it must be based on your analysis

It is concluded that mostly the consumer of nestle is highly satisfied with the availability
and quality of Nestle products. Consumers overall reaction was very positive. Some of
them were concerned about the price increases by Nestle Pakistan but were satisfied with
the quality of products offered by Nestle. As for as the retailers are considered they were
satisfied but was little concerned about the return of expiries and company strict policies
about supply and discounts.( these things were not mentioned in the questionnaire,
Retailers personally told me when I went to get the questionnaire filled from them).
Overall Nestle is doing good job in distribution and is filling the demands generated by
the sales and marketing teams. Females were even more satisfied with the Nestle and
were appreciating Nestle for its high quality products.
Page#20
Consumer was satisfied with the quality and rated Nestle as a producer of the high
quality food. Although some were concerned about the increase in the prices but still wan
to use only Nestle it again shows that how much nestle has got the customer satisfaction.

Chapter# 6 Conclusion, recommendations and limitations

6.1 Conclusion it must be align with your objectives

Nestle is doing well in the market having a well trained and well equipped field force
which ensures its best market penetration and high consumer satisfaction. It is concluded
that Nestle is best in all aspects of the business. As for as distribution is concerned Nestle
has build a strong distribution system and is ensuring a good availability of the product in
the market. Overall Nestle is doing good job in distribution and is filling the demands
generated by the sales and marketing teams.

6.2 Recommendations it must be align with your objectives

It was found in the survey that mostly customers were satisfied with the company but
some retailers were concerned about the strict polices of the company regarding the
change in expired and damaged product and want and easy and retailer favoring policy. It
is recommended that company must consider it’s every customer and should not ignore
the demands of the retailers in change of the damaged and expired items.

6.3 Limitations

IN this work the main limitation was the shortage of time after the approval of the
proposal. If more time could be provided it may further improve the data collection
process in the reporting process. Respondents do welcome the questionnaire but it was
little different with the retailers. Retailers do not give the time for questionnaire filling
and were avoiding the questionnaire. Females do it with more attention and with better
attitude vs. men. Scope was really well and it provides a practical example of data
collection and interaction with the public. It is very important for any one doing work in
the marketing lone.

Page#21

PART……2

Introduction of student:

• Last Degree Obtained………… MSc Zoology from GC Lahore

• Organization name…………….. Nestle Pakistan
• Designation……………………..Supervisor
• Experience………………………3.5 years

APENDIX

BIBILOGRAPHY:

Product line and targeted markets [on line] available

http://www.nestle.com.pk

Anwer, Muhammad. (2009).research methods.virtual university of

Pakistan.
Ahmad,mukhtar.(2009).principles of marketing.virtual university of
Pakistan.

Kotler,Philip. Armstrong, Gary, .(1999). Principles of

marketing( Eighth Edition) prentice hall of India private limited.

Page#22

XL Work.

QUESTIONARE
Number Of Respondants
Q.1: You are a

Male 74
Female 46
Total 120
Q.2: Your Name……………………………………………..

Q.3: Your age is?

Below 20 38
21 to 40 82
41 to 60 0
61 and above 0
Total 120
Q.4: Your education is?
Matric and Below 23
Intermediate 12
Bachelor 51
Masters and Above 34
Total 120
Q.5: Do you know Nestle products?

Yes 120
No 0
Total 120
Q.7: Nestle has good presence in the market?

Strongly Disagree 3
Disagree 0
Neutral 5
Agree 75
Strongly Agree 37
Total 120

Q.8: Nestle products are available to you when demanded?

Strongly Disagree 1
Disagree 4
Neutral 11
Agree 64
Strongly Agree 40
Total 120

Q.9: You are satisfied with the services provided by Nestle Pakistan?
Very satisfied 35
Somewhat satisfied 75
Neither 3
Somewhat dissatisfied 7
Very unsatisfied 0
Total 120

Q.10: Would you recommend Nestle brands to other for usage?

Strongly Disagree 0
Disagree 2
Neutral 5
Agree 74
Strongly Agree 39
Total 120

Q.11: How would you rate your overall experience with Nestle brands?

Strongly Disagree 0
Disagree 5
Neutral 20
Agree 53
Strongly Agree 42
Total 120

Q.12: Location of Nestle distributor is good?

Strongly Disagree 0
Disagree 3
Neutral 10
Agree 64
Strongly Agree 43
Total 120

Q.13: Nestle products are easily accessible on motorcycle?

Strongly Disagree 0
Disagree 0
Neutral 2
Agree 48
Strongly Agree 70
Total 120
Q.14: Nestle peoples, sales persons or distributor responds to you in case of any complain?

Strongly Disagree 5
Disagree 10
Neutral 17
Agree 65
Strongly Agree 23
Total 120
Q.15: How do you rate the helpfulness of Nestle staff to resolve your problem when needed?

Strongly Disagree 7
Disagree 13
Neutral 12
Agree 61
Strongly Agree 27
Total 120
Q.16: In your opinion nestle products are easily available vs. other competition?

Strongly Disagree 2
Disagree 19
Neutral 12
Agree 63
Strongly Agree 30
Total 120
Q.17: Is availability of the product plays role in its sale?

Strongly Disagree 2
Disagree 7
Neutral 3
Agree 56
Strongly Agree 52
Total 120
Q.18: You just purchase nestle products because of its good availability?

Strongly Disagree 0
Disagree 18
Neutral 10
Agree 63
Strongly Agree 29
Total 120

Q.19: Nestle distribution system is best in the market?

Strongly Disagree 5
Disagree 12
Neutral 0
Agree 75
Strongly Agree 28
Total 120
Q.20: You will prefer the Nestle product only when it is easily available, you will not
Try to found it in market?

Strongly Disagree 18
Disagree 77
Neutral 9
Agree 11
Strongly Agree 5
Total 120
Q.21: In your opinion nestle should further work to improve its distribution system?

Strongly Disagree 5
Disagree 32
Neutral 5
Agree 72
Strongly Agree 6
Total 120
Q.22: You observe nestle products in stores?

Strongly Disagree 12
Disagree 18
Neutral 9
Agree 54
Strongly Agree 27
Total 120
Q.23: If you make your own company you would like to follow the distribution strategies of
Nestle?

Strongly Disagree 1
Disagree 6
Neutral 13
Agree 72
Strongly Agree 28
Total 120