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    Assignment of 5 Porters Forces

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    Arslan Nawaz
    This document provides an analysis of Nestle Pakistan's market position using Porter's Five Forces framework. It examines the intensity of competition Nestle faces from other companies in various product categories like dairy, beverages, and cereals. It also discusses the threat of new entrants, potential substitute products, and the bargaining power of both Nestle's suppliers and customers. The analysis finds that while Nestle has strong brand recognition, it faces competition from companies like Haleeb Foods, Shezan, Engro Foods, Kellogg's, and new entrants offering similar products.

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    Assignment of 5 Porters Forces

    Uploaded by

    Arslan Nawaz
    6K views6 pages
    This document provides an analysis of Nestle Pakistan's market position using Porter's Five Forces framework. It examines the intensity of competition Nestle faces from other companies in various product categories like dairy, beverages, and cereals. It also discusses the threat of new entrants, potential substitute products, and the bargaining power of both Nestle's suppliers and customers. The analysis finds that while Nestle has strong brand recognition, it faces competition from companies like Haleeb Foods, Shezan, Engro Foods, Kellogg's, and new entrants offering similar products.

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    Porters 5 Forces and Nestle Pakistan.

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    This document provides an analysis of Nestle Pakistan's market position using Porter's Five Forces framework. It examines the intensity of competition Nestle faces from other companies in various product categories like dairy, beverages, and cereals. It also discusses the threat of new entrants, potential substitute products, and the bargaining power of both Nestle's suppliers and customers. The analysis finds that while Nestle has strong brand recognition, it faces competition from companies like Haleeb Foods, Shezan, Engro Foods, Kellogg's, and new entrants offering similar products.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    6K views6 pages

    Assignment of 5 Porters Forces

    Uploaded by

    Arslan Nawaz
    This document provides an analysis of Nestle Pakistan's market position using Porter's Five Forces framework. It examines the intensity of competition Nestle faces from other companies in various product categories like dairy, beverages, and cereals. It also discusses the threat of new entrants, potential substitute products, and the bargaining power of both Nestle's suppliers and customers. The analysis finds that while Nestle has strong brand recognition, it faces competition from companies like Haleeb Foods, Shezan, Engro Foods, Kellogg's, and new entrants offering similar products.

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    The document discusses Porter's five forces model of industry analysis and applies it to analyze Nestle's position in the Pakistani market.

    Porter's five forces include the threat of new entrants, threat of substitutes, bargaining power of suppliers, bargaining power of buyers, and rivalry among existing competitors.

    Companies like Haleeb Foods, Shezan, Kellogg's, and Engro Foods compete with Nestle in products like dairy, juices, cereals and noodles. Haleeb Foods competes across many categories like dairy, juices and cereal.

    MARKET POSITIONING AUDIT

    Submitted to Tahir Ashfaq Submitted By Arslan Nawaz L1F11MCOM2165 M.Saghir Sarwar L1F11BCMH2021 M.Ali Naqvi L1F11MCOM0164 A.D Ahsan L1F11MCOM2144 Hina Razzaq L1F11MCOM2137 Javaria Abrar L1F11MCOM2142 Sumbal Aftab L1F11MCOM2146 Madiha Saber L1F11MCOM2155

    1.0 Porters Five Forces Porter's five forces analysis is a framework for industry analysis and business strategy development formed by Michael E. Porter of Harvard Business School in 1979. Porter's five forces include - three forces from 'horizontal' competition: threat of substitute products, the threat of established rivals, and the threat of new entrants; and two forces from 'vertical' competition: the bargaining power of suppliers and the bargaining power of customers. Porter referred to these forces as the micro environment, to contrast it with the more general term macro environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit.

    Porters 5 Forces and Nestle Pakistan


    Intensity of competitive rivalry

    Bargaining power of suppliers

    Threat of new competition

    Porter's 5 Forces

    Bargaining power of customers

    Threat of substitute products or services

    2.0.1 Intensity of competitive rivalry


    Nestle Pakistan is a subsidiary of nestle international. Nestle Pakistan produce high quality products. In Pakistan there are the following competitor of nestle. Which can effect nestle sales.

    Nestle Competitors
    Product Category Nestle product in category Competitor Competitor Products

    Dairy

    Milkpak, Nesvita, Nido Everyday, Milkpak Cream Dahi, Raita

    Haleeb Food Engro Foods Limited Shezan

    Haleeb Milk, Haleeb Skimz, Haleeb Doodh, Haleeb Yogurt & Raita, Haleeb Cream Olpers, Olwell, Tarang

    Beverages

    Nestle Nectar Juices

    Haleeb Food

    Shezan allpure, twist and regular juices Haleeb Just Fruit, Tropico Nectar, Fun Milk

    Fauji Breakfast Cereals Koko Krunch, Corn Flakes Kellogg

    Wheat, Rice, Choco, Honey Flakes K Challenge, All Brain, Honey, Corn Flakes, Cocoa Krispies, Cracklin' Oat Bran

    Shezan Shezan international can compete nestle by its products. Shezan all pure, twist and regular juices can compete nestle nectar juices because company charge low price from consumer as from nestle. Unilever Pakistan

    Unilever Pakistan sub brand Knorr noodles is a major competitor of maggi noodles. Knorr noodles are available in market in six different flavors. Chatt Patta Noodles, Chicken Noodles, Chicken Jalapeno Noodles, Ketchup Noodles, Thai chicken Noodles and Lemon Chilli Noodles. While maggi is available in four delicious flavors: Chicken, Chatkhara, Masala and Lemon. Haleeb Food Haleeb food can compete nestle by its products. Haleeb Milk, Haleeb Skimz Liquid & Powder, Haleeb Doodh (Chocolate, Stawberry, Vanilla & Almond), Haleeb Yogurt & Raita (Mint or zeera), Haleeb Cream, Haleeb Just Fruit (5 flavors), Haleeb Tropico Nectar (Orange & Mango & Apple), Haleeb Fun Milk (chocolate, strawberry, vanilla and almond with cardamom and saffron), can shuffle the sales of Nestle MilkPak, Nestle Every day, Nido, Nestle dahi & raita, MilkPak cream, Nestle nectar Juices respectively according to their product categories. Engro Foods Limited Its sub brands Olpers, Olwell, Tarang can affect MilkPak, Everyday. Fauji Cereals It is giving 10 different types of cereals as compare to nestle Pakistan which giving only two flavors. Kellogg Kellogg competing nestle cereals.

    2.0.2 Threat of new competition


    These are the few companies which are entering in Pakistan to sell their products and making profit. It is quite possible that these companies can shuffle the sale of nestle or made it competitor. Minute Maid Fresher Fruiticana Qaswa Nutrivita Minute Maid Minute maid is the parent company of Coca-Cola Company. Which producing high quality product. Minute maid provides orange, Apple juices.

    Fresher Fresher provides juices in Apple, Mango, Grapes, Cheery. Fruiticana Fruiticana is Canada based company. It provides mango, orange, guava flavor juices in Pakistani market. Qaswa Qaswa giving two flavor juices mango and guava to its buyer. Nutrivita Nutrivita is Pakistan based company fully owned by Agro ventures (Pvt) Ltd. It's providing five flavor cereals in Pakistan.

    2.0.3 Threat of substitute products or services


    Nestle product substitute are given by following companies. Dairy product substitutes Nestle liquid milk products are MilkPak, Nesvita. There are some companies which providing its substitute like Haleeb food giving Haleeb milk and Skims. Engro food private Ltd produces Olper's. In condensed milk nestle giving Everyday for tea milk and Nido as tea milk. Engro provides Tarang as substitute. Juices Substitute Nestle produce nectar juices under the brand name. Shezan all pure can be said as it substitute. Boiled Water Nestle provide mineral water as brand name pure life. PepsiCo Inc. provides Aquafina to consumer as substitute of pure life.

    Cereal Nestle provide Koco Krunch and Cornflakes as their cereal. Kellogs and fauji provides large variety of cereal according to the taste and age group of buyer.

    2.0.4 Bargaining power of customers (buyers)


    Nestle provide the best and most reliable food and beverage products to meet their needs throughout the day, throughout the life. They are often reassured that they will find well-known brands out of home. This statement also reflects the image of high quality products that Nestle offers. Nestle has the advantage that it offers complete range of high quality ingredients, base products and meal components, as well as leading consumer brands such as Nescafe, MilkPak and pure life. Quality is the cornerstone of the success of the Nestle Company. Every day, millions of people all over the world show their trust in the company by choosing Nestle products. This trust comes from a quality image that has been built up for over a century. Therefore, the quality of the products ultimately enhances the quality of the consumers life. Nestle has proven this ability a number of times by introducing new products that were required by consumers. Especially, the launch of Nestle Pure Life in Pakistan proves the accuracy of this fact. In Pakistan, there was a need for safe and healthy drinking water and Nestle responded to this consumer need by introducing Nestle Pure Life. Building customer relationship based on customer value and satisfaction is at the very heart of modern marketing. The two fold goals of Nestle marketing are to attract new customer by promising to provide high quality product and they maintain old customers by providing then superior quality products.

    2.0.5 Bargaining power of suppliers


    The fruits uses for Nestle products are high in quality and purchase at good rate. Fruits for Nestle are collected from different farms of Pakistan and they are checked by Nestls best authority officers at International Standards. One of the great suppliers of nestle are Packages Limited. Packages Limited is the biggest dealers in Pakistan too many recognize Companies of Pakistan such as Tetra Pak Pakistan Ltd. They are one of the good suppliers of the Nestle. As they provide huge product to Nestle thats why they are offering good price to the Nestle. To sum up, we can say that Nestle suppliers are offering great prices to Nestle as Nestle is wellknown company of Pakistan and collect raw material at high level.

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