Nestle Pure Life Corporate Strategy
Nestle Pakistan:
Nestlé Pakistan Ltd is a subsidiary of Nestlé S.A. - a company of Swiss origin headquartered in Vevey, Switzerland. In Pakistan, it is the leading Nutrition, Health and Wellness Company with a mission to positively enhance the quality of life of the people of Pakistan by all that they do through their people, their brands and products and their CSV activities.
Nestle in Pakistan is divided into 4 major business units each headed by a business unit manager. The BM is given all decision making power with respect to his business as long as it is in accordance with Nestle Business Principles and is supervised by the Core Management Team sitting at the Head Office in Lahore. The biggest contributor is the Food and Beverages Unit which contributes 81% of the revenue followed by Nestle Waters 9%, Nestle Nutrition 8% and Nestle Professional 2%. The divisional hierarchy is shown below to better explain how it is structured. This paper will primarily focus on the Water Business of Nestle Pakistan.
[pic]Nestle Water Business:
The Nestle Water Business looks after the bottled water brands of Nestle. Even though Nestle has multiple brands in different markets worldwide, it understands that Pakistan is still a developing bottled water market and is thus operating with just a single brand NESTLE PURE LIFE. The bottled water division is further divided into 2 separate divisions, PET (contributes 56%) and Bulk Water (44%) of the revenues.
Analysis of the Water Business:
The bottled water business is still in its growth phase with the concept of purchasing water being alien to a majority of people. This can be concluded from the low consumption of bottled water per capita even in major cities of the country. Brands, like Nestle Pure Life is considered a luxury product by many due to its high cost in comparison to the traditional boiled water used at homes.
The cost structure has been affected considerably due to 2 major reasons, one is the
Nestlé Pakistan Ltd is a subsidiary of Nestlé S.A. - a company of Swiss origin headquartered in Vevey, Switzerland. In Pakistan, it is the leading Nutrition, Health and Wellness Company with a mission to positively enhance the quality of life of the people of Pakistan by all that they do through their people, their brands and products and their CSV activities.
Nestle in Pakistan is divided into 4 major business units each headed by a business unit manager. The BM is given all decision making power with respect to his business as long as it is in accordance with Nestle Business Principles and is supervised by the Core Management Team sitting at the Head Office in Lahore. The biggest contributor is the Food and Beverages Unit which contributes 81% of the revenue followed by Nestle Waters 9%, Nestle Nutrition 8% and Nestle Professional 2%. The divisional hierarchy is shown below to better explain how it is structured. This paper will primarily focus on the Water Business of Nestle Pakistan.
[pic]Nestle Water Business:
The Nestle Water Business looks after the bottled water brands of Nestle. Even though Nestle has multiple brands in different markets worldwide, it understands that Pakistan is still a developing bottled water market and is thus operating with just a single brand NESTLE PURE LIFE. The bottled water division is further divided into 2 separate divisions, PET (contributes 56%) and Bulk Water (44%) of the revenues.
Analysis of the Water Business:
The bottled water business is still in its growth phase with the concept of purchasing water being alien to a majority of people. This can be concluded from the low consumption of bottled water per capita even in major cities of the country. Brands, like Nestle Pure Life is considered a luxury product by many due to its high cost in comparison to the traditional boiled water used at homes.
The cost structure has been affected considerably due to 2 major reasons, one is the