A PROJECT OF STRATEGIC MARKETING

ON

Nestlé
FRUIT YOGURT

PRESENTED TO
Professor COL. SOHAIL AKRAM

PRESENTED BY
Mohsin Ali
Adnan Safder
Ahsan Ajmal
Umair Raiz
Fakhar Zaman

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ACKNOWLEDGEMENT

In the context of this project report, we would like to thank all the personalities
who helped us in achieving our objectives from the learning point of view. With
the grace of Almighty Allah we are able to finish our final project of strategic
marketing on Nestlé fruit yogurt. We are very thankful to our beloved teacher who
helped us a lot in writing of this project and showed us the right way in order to
complete this project. We would also like to say thanks to Asif Ali Khan, Chilled
dairy Manager for helping us and giving his very precious time. We also like to
thank our college authorities to provide us with all the needed facilities.
We also want to thank our parents on the behalf of this project report in helping us
and praying us all way long for our success and better health. We did our best to
complete this project and tried to take information from every possible source and
to make this project as much realistic as possible.

Mohsin Ali Adnan Safder

Ahsan Ajmal Umair Raiz

_________________
Fakher Zaman

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TABLE OF CONTENTS
ACKNOWLEDGEMENT........................................................................................
2
TABLE OF CONTENTS.........................................................................................3
EXECUTIVE SUMMARY......................................................................................5
NESTLÉ MISSION..................................................................................................6
NESTLÉ
VISION.....................................................................................................6
NESTLÉ’S INTRODUCTION................................................................................7
NESTLÉ IN PAKISTAN.........................................................................................8
DEPARTMENTS.....................................................................................................8
ORGANIZATION CULTURE................................................................................8
SITUATION ANALYSIS........................................................................................9
SWOT ANALYSIS............................................................................................9
Strengths.......................................................................................................9
Weaknesses................................................................................................10
Opportunities..............................................................................................12
Threats........................................................................................................13
ENVIRONMENT ANALYSIS........................................................................14
Demographic Analysis...............................................................................14
Technological Analysis..............................................................................15
Economic Factors.......................................................................................15
Ecological Analysis....................................................................................16
Political & Legal Analysis.........................................................................16
Education System.......................................................................................16
DISTRIBUTION ANALYSIS.........................................................................16
Distribution Constraints.............................................................................17
Retailer Incentives......................................................................................18
Recommendations......................................................................................18
TARGET MARKET..............................................................................................18
MARKETING INTERFACE.................................................................................18

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Product........................................................................................................1
8
Price............................................................................................................19
Place...........................................................................................................19
Promotion.................................................................................................. 19
STRATEGIC RECOMMENDATIONS……........................................................20
PRODUCT.......................................................................................................20
Addition of more flavors............................................................................20
More uses different recipes like desserts....................................................20
PRICE AND PACKAGING............................................................................20
Price............................................................................................................20
Resizing of the pack...................................................................................21
PEOPLE...........................................................................................................21
Different Target Market.............................................................................21
Target Audience.........................................................................................21
PROMOTION..................................................................................................21
TV Program................................................................................................22
Kiosks.........................................................................................................22
Billboards...................................................................................................25
Banners.......................................................................................................25
Magazine ads..............................................................................................26
Newspapers................................................................................................27
Advertisement............................................................................................28
MONITORING & REVIEWING..........................................................................29
REFERENCES/APPENDICES.............................................................................32

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EXECUTIVE SUMMARY
First of all we probe for the reasons of failure of the Nestlé Fruit yogurt and after
that we come up with new strategies (Market plan) that can help in the
improvement of the fruit yogurt. We changed its positioning statement that was
just focusing on children. We analyzed that Nestlé has a very organized system for
handling in each product. There is one chilled dairy manager for the Yogurt
Company and he is responsible for the success and development of all the yogurt
products. Nestle spend a fixed profit on marketing of a certain product. Less profit
in Nestle Fruit Yogurt ends up with low involvement in their marketing efforts.
They are not worried about the low acceptance of this product as they already
knew that fact. They also believed that with the passage of time sooner or later the
nestle fruit yogurt will mark its acceptance in the consumers minds.
The result of the survey conducted by us shows that the product is tasted and used
by many people but it is not accepted by them because of less awareness and
promotion whereas company has its own strategies regarding promotion of the
product. Total budget for promotion depends on the sales volume. Almost 80%
sales are generated from plain yogurt whereas 20% from the flavored yogurt out
of which fruit yogurt generates only 5%.
We repositioned it by expanding it target market and increasing its users. We
established positioning statement of “Tingle your taste buds with Nestle Fruit
Yogurt”. We analyzed that the major thing nestle fruit yogurt was lacking was its
package size. We have also changed its original size into different sizes. Due to
lack of awareness, we increased its marketing through billboards, advertisements
on TV and newspapers and also by putting banners along the roadside. We also
planned to start a Television 5 minutes recipe show.
We believe that (particularly) Nestle Fruit Yogurt needs to focus on its diverse
image. Nestlé needs to expand market by focusing on different age groups and by
increasing its uses.

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NESTLÉ’S MISSION
“At Nestlé, our research makes it possible for everyone to enjoy better food for
a better life.”
Good Food is the primary source of Good Health throughout life. We strive to
bring consumers foods that are safe, of high quality and provide optimal nutrition
to meet physiological needs. In addition to nutrition, health and wellness, Nestlé
products bring consumers the vital ingredients of taste and pleasure.
As consumers continue to make choices regarding foods and beverages they
consume, Nestlé helps provide selections for all individual taste and lifestyle
preferences.
Research is a key part of our heritage at Nestlé and an essential element our
future. We know there is still much to discover about health, wellness and the role
of food in our lives, and we continue to search for answers to bring consumers
Good Food for Good Life.

NESTLÉ’S VISION
“Nestlé aim is to meet the various needs of the consumer every day by marketing
and selling food of a consistently high quality.”
The confidence that consumers have in our brands is a result of our company’s
many years of knowledge in marketing, research and development, as well as
continuity – consumers relate to this and feels they can trust our products.

The mission and vision statement covers almost all perspectives. Therefore, no
necessary changes are required for it. But particularly for Nestlé Fruit Yogurt, we
have made a tag line or positioning statement as:
“Tingle your taste buds with Nestle Fruit Yogurt”

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NESTLÉ’S INTRODUCTION
Nestlé with headquarters in Vevey, Switzerland was founded in 1866 by Henri
Nestlé and is today the world’s biggest food and beverage company. Sales for
2006 were CHF 98.5 bn, with a net profit of CHF 9 bn. Nestle employ around
265,000 people and have factories or operations in almost every country in the
world.
Nestlé is the largest food and beverage company in the world. It is also well on its
way to becoming world leader in nutrition, health and wellness. The Nestlé
Company is built on the foundation of very strong brands. Some are global, others
are regional, and many are local to a specific country.

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NESTLÉ IN PAKISTAN

Nestle Pakistan Limited Formerly known as Nestle Milkpak Limited. The

Group’s principal activities are to manufacture process and sell food products
and ancillary equipment. The food products include diary, confectionery and
culinary products, coffee and beverage and drinking water. The major brands
include MILKPAK UHT, NESTLE EVERYDAY, LACTOGEN and
NESCAFE.

DEPARTMENTS

In Nestlé Pakistan, the departments are divided on the basis of the brands.
Nestlé Fruit yogurt has a separate functional department. All the yogurt
products are managed by Chilled dairy manager. All the finances, marketing,
distribution, production and other departments come under the control of
chilled dairy manager.

ORGANIZATION CULTURE
The Company’s strategy is guided by several fundamental principles. Nestlé’s
existing products grow through innovation and renovation while maintaining a
balance in geographic activities and product lines. Long-term potential is
never sacrificed for short-term performance. The Company’s priority is to
bring the best and most relevant products to people, wherever they are,
whatever their needs, throughout their lives.

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SITUATION ANALYSIS

SWOT ANALYSIS

Strengths
• Company Name: The name of nestle is no doubt a strength as it
has the trust and reliability in the consumers mind and people do prefer
nestle products especially dairy products over other brands.
• Quality: Nestlé is the biggest manufacturer of food products in the
world. Nestle name is a symbol of quality. They have always provided
products of high quality. All of their products are quality assured and
certified by the quality assurance companies and production facility
certificate providers such as ISO certifications and FDA approval
certificates. Nestle before launching any product into the market place
always makes sure that it is not in any way harmful for the public. This
quality however varies from country to country e.g. Nestle juices in
Pakistan are all artificial with preservatives whereas in other parts
around the world such as States they are natural preserved with citrus.
But this difference however doesn’t mean that the products are of low
quality in that particular country because in Pakistan the trend of
natural juices is not there yet so it is of the highest quality compared to
any other locally manufactured juice. In the similar manner their
yogurt is also of the highest quality in the market place.
• Manufacturing processes: Nestle have state of the art machines,
process and techniques which help them to produce better and better of
the all.
• Trustworthy company: Nestle name is a symbol of trust. The
consumers trust that their products will do them no harm. Any thing
with nestle written on it is trusted by consumers and with the trust they
have established over the years not only in Pakistan but also in other
places across the Globe they have sold many products. No one doubt
nestle products, if it’s going to be good, that’s what the consumers

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believe and so have faith in the company. No wonder Nestle yogurt has
the highest market share in Pakistan.
• Consumption in Punjabi Culture: In the Punjabi culture the
consumption and manufacturing of yogurt is very high. Even before
Pakistan came into being in 1947 Yogurt has been a part of everyone’s
life in Punjab whether it is Indian Punjab or Pakistani Punjab. Yogurt
is used for many purposes especially for cooking. In cooking yogurt
plays a major role as many Desi dishes are prepared in Yogurt. Along
with that there are many other uses of Yogurt. It is also used for
making other products such as Lassi etc. Lassi is a part of every
Punjabi especially in the areas which have more heat as in the south
belt of Punjab. Many Lahori drinks lassi in the morning or at night. It
is a part of their daily intake of food. It is also used when a person
wants to go to sleep as it slows down the brain functions and puts a
person to sleep. However it’s not a drug or something but a natural
product which is extremely good for one’s health.

Weaknesses
• Lack of awareness: A major drawback in the low consumption of
fruit yogurt is the lack of awareness among the consumers. Many
people don’t even know that it exists. It did launch with a fury in the
market but because the trend was not already there in the market, the
sales were very low. Nestle is the only company to come up with fruit
yogurt in the local market despite the fact that the need for it was
always there. People are not aware of fruit yogurt in remote areas of
Punjab. Nestle only focused on advertising in major cities across
Pakistan, so this left other areas suffering from a lack of awareness of
the product.
• Big accounts: Nestle does not have many big accounts to keep the
budget of advertising high. Nestlé’s budget for advertising is a fixed
percentage of sales. The sales are not high therefore the advertising of
the product suffers. Nestle doesn’t have many key or national accounts
so that the product has relatively high sales and can match up to other

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products of nestle. The only major accounts that they do have are of
PIA and a few corporate offices. Their corporate level customers are
also very low compared to other products of Nestle.
• Availability: Availability is another major issue in the low
volume of sales of Nestlé’s Fruit Yogurt. Retailers don’t want to keep
an item in their stock that takes up their freezer space. But nestle did
give retailers freezer’s to keep the product but many of them still
refused to keep the product because it takes up space that could be
utilized for other FMCGs which have higher profits or a high turnover
as a result of their higher demand.
• Lack of Distributors’ interests: Distributors don’t prefer this
product because it has to be transported in chilled containers and the
level of sales is so low for this product that they’d rather transport
other products which do not require transportation in chilled trucks.
The distributors prefer transporting other products with similar needs
of transportation but with relatively very high volume of sales such as
Walls ice cream in their container or even the normal yogurt of Nestle
which gives them high returns as there is a very high demand of the
product.
• Chilling need: This product has to be kept frozen and has a very
little expiry time which is of 10 – 15 days. After 10 – 15 days the stock
has to be replenished. This is another issue in the low sales of yogurt.
Even if the retailer decides to keep the product the sales are not very
consistent as to predict the amount of sales for the product. The sales
fluctuate as many people are not aware of the product and neither takes
it as a delicacy but instead children tend to look towards it as a health
product. The chilling factor is very annoying for the consumer as well
because they can’t store it for much long first they buy it from a retail
outlet then have to store it at home for future purposes in their fridge
and in case the yogurt expires the fridge starts to have a very foul smell
which is absorbed by other food items which in turn causes hatred for
the product and discourages repeated purchase of the item.

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• South Pakistan culture: The yogurt as a product whether loose or

packed is not a part of Sindh and the southern belt of Pakistan. Only
10-12% of the total sales are in the south. Due to climate of South,
people prefers products such as tea and related items over products
such as yogurt, lassi etc. The south has not yet developed a yogurt
consuming culture so far. They do however have the tendency to
develop such habits but it will take ages to develop.

Opportunities
• Potential market for fruit yogurt: There is a high potential for
fruit yogurt especially in Punjab. Lahore and Islamabad are already
generating good sales of the product. Nestle fruit yogurt like every
other nestle product has a one year management business plan and a 10
year product plan. So far it is somewhat meeting the minimum required
sales to keep the product in the market. But the sales have improved
quite well after the latest campaign of the product. It already has a
consumption of 400 ton/month all over Pakistan despite the fact it is a
very small brand of Nestle. There is a total consumption of 65,000 tons
of urban yogurt consumption out of which 1.7% consumption is of
loose yogurt and 1.8 million tons of general yogurt which includes
loose and packed yogurt. These high figures do indicate that the
potential is always there for fruit yogurt to take a chunk of the total
market share of packed yogurt. People are coming towards packed
yogurt just like they did in the case of tetra pack milk. Milk now has a
very high share of the total milk market and same is expected for the
yogurt with the changing trends and along with that great demand for
fruit yogurt is also expected in the future.
• Climate of Pakistan: The best time to cash in on such a product
are the summers. In summers children as well as adults are looking for
chilled flavored products such as ice creams, shakes, juices etc. Along
with that they will also be looking forward to eating fruit yogurt. The
consumption of yogurt in the summers is as follows:
i. 42% plain form

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ii. 23% lassi

iii. 21% meal component such as raita
iv. 13% culinary
This high usage of yogurt in the plain form also gives Nestle an
opportunity to sell chilled fruit yogurt in summers.
• Tax exemption: This year everyone was wondering why so many
dairy products are entering the market. The reason for this was the
exemption given by the government on dairy products. Many
companies entered the market as no sales tax was being charged on
dairy products but still all the companies were selling the products at
the same price as before which meant that the 15% they previously
paid to the government was now going into their own pockets. The
reason for the current high budgeted advertising for fruit yogurt was
also the same as the government refunded the sales tax for the previous
years. That was invested in the advertising of the product. This recent
tax exemption in technical terms means that the sales tax rated zero on
dairy products. Government has also started paying input adjustments
which means that there are also no taxes on the purchase of the
products used in manufacturing dairy products.

Threats
• Poor economy: The reason for the high purchase of loose yogurt
which is 65,000 tons is mainly because packed yogurt is relatively
twice that price. The poor economy and purchasing power of the
people of Pakistan does not allow them to purchase packed yogurt.
This poor economy is however becoming better and better as the time
passes. The country has a whole has an increase in per capita GDP
every year which means that this would with the passage of time
change. With the advent of WTO implementation in the country the
times would change. This poor economy which currently persists
doesn’t allow for the fruit yogurt to become a high sales product in the
local market.

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• Big size families: The big size of the Pakistani family is another
major issue and reason for the so termed failure of the fruit yogurt in
the local market. Pakistan has a very high population and an alarming
growth rate. The population is around 150,000,000 and the people per
square km are around 534. These statistics are very high. And fruit
yogurt with these high stats can’t feed all of the yogurt loving families.
This product can’t in any way fulfill the needs of such big size
families. While purchasing yogurt or for that matter fruit yogurt the
cost of purchasing the product for the whole family becomes very high.
This is a major issue in the success of the product that it can’t be
bought for the whole family or at least for the kids for that matter. The
price for even feeding the average number of kids of a family which
are around 5 in Pakistan the cost comes around to Rs.75 whenever you
want to buy yogurt for your kids which is very high keeping in mind
that the per capita GDP in Pakistan is only $2803. This constitutes a lot
of burden financially on an average Pakistani family. A mere average
salary of Rs.14,015 which has to feed 7 people on the average which
means that the cost of living comes around to be Rs.2000 per person
out of which if they start spending Rs.75 on fruit yogurt daily means
that the cost would be 2250 which means a deficit Rs.250 would occur.

ENVIRONMENT ANALYSIS
Demographic Analysis:

• Population: 165,803,560 (July 2006 EST.)

• Age structure:
o 0-14 years: 39%
o 15-64 years: 56.9%
o 65 years and over: 4.1%
• Population growth rate: 2.09% (2006 EST.)
• Ethnic groups: Punjabi, Sindhi, Pashtun (Pathan), Baloch, Muhajir
• Religions: Muslim 97% (Sunni 77%, Shi’a 20%), Christian, Hindu,
and other 3%

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• Diet and Nutrition

o In Pakistan, the nutritional status of children under five years of
age is extremely poor.
o At a national level almost 40% of these children are
underweight.
o In the Pakistani diet cereals remain the main staple food
providing 62% of total energy. The consumption of fruit and
fresh vegetables, which are highly dependent on local seasonal
availability, is also limited by the lack of organized marketing
facilities throughout the country.
o A large number of infectious diseases such as respiratory and
intestinal infections remain responsible for up to 50% of deaths
of children under five, with malnutrition being an aggravating
factor especially in the most populated areas.

Technological Analysis:

• Agriculture – Products: cotton, wheat, rice, sugarcane, fruits,

vegetables; milk, beef, mutton, eggs
• Industries: Textiles and apparel, food processing, pharmaceuticals,
construction materials, paper products, fertilizer, shrimp
• Industrial production growth rate: 10.7% (2005 EST.)
• Electricity – production: 76.92 billion kWh (2003)
• Current account balance: $-1.109 billion (2005 EST.)
• Exports: $14.85 billion f.o.b. (2005 EST.)

Economic Factors:

• GDP : USD 1560 per capita

• GDP growth: 1%
• Unemployment rate: 6%
• Inflation rate: 10%
• Consumer confidence Level in Nestle: High
• Inventory levels

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• Currency exchange rates: Pak Rupee 62 = 1 USD,

• Trade: USD 129 per capita or 33% of GDP
• Trading partners: United States, Japan, Kuwait, Denmark, Middle East,
Great Britain
• Balance of payments: deficit 2.197 Billion USD

Ecological Analysis:

• Climate: mostly hot, dry desert; temperate in northwest; arctic in north

• Natural hazards: frequent earthquakes, occasionally severe especially in
north and west; flooding along the Indus after heavy rains (July and
August)
• Environment – current issues: water pollution from raw sewage,
industrial wastes, and agricultural runoff; limited natural fresh water
resources; a majority of the population does not have access to potable
water; deforestation; soil erosion; desertification

Political and Legal Analysis:

• Government : semi-presidential system

• government debt : USD 38.8 billion
• budget : deficit revenues: $15.45 billion-expenditures: $20.07 billion =
-$ 4.62 billion

Education System

• Literacy: definition: age 15 and over can read and write

• Total population: 48.7%
• Male: 61.7%
• Female: 35.2% (2004 EST.)

DISTRIBUTION ANALYSIS
Nestlé has a proper distribution system for its each brand. This physical
distribution process makes the product more convenient to buy. Nestlé
carefully observes that the product arrives in good condition and fit the

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consumer’s need for convenience. For distribution process, Nestlé uses

transportation method including 8 vans for each distribution category. Nestlé
has divided its distribution process into following major categories:

Category 1: Distribution of Powdered Products

(i.e. Coffee, Everyday, Nesqick, Lactogen etc)

Category 2: Distribution of Liquid items

(i.e. Milkpak, Juices etc)

Category 3: Distribution of Water

(i.e. Nestlé Pure life)

Category 4: Distribution of Chilled Dairy items

(i.e. Nestle Milkpak Cream, Yogurt etc)

For each category, the transportation system is separately designed. Each

category is assigned with 8 vans and each van covers 2 areas. Furthermore,
Nestlé has divided its areas in following four classes.

Class A: It involves elite class areas like Defence, Gulberg, Model Town etc
Class B: Areas adjacent to Mall road, Jail road etc
Class C: Johar Town and Faisal Town are the major areas covered under this
class.
Class D: Narrowly focused areas.

Distribution Constraints
Nestlé fruit yogurt faces a major distribution constraint that is the temperature
norm of the product. Fruit yogurt requires a temperature of 2 to 4°C.
Therefore, this chilled dairy product is delivered to retailers in special vans
with comparatively low temperature.
Another constraint faced by Nestlé is the availability of freezer/chillers in the
stores. That’s why, the focus of area squeezes to few retailers who are earning

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enough to fulfill the temperature norms of the product. Mostly retailers switch
off their freezers as they close their stores. Load shedding is also one of the
current issues faced by Nestlé.

Retailer Incentives
The major source of building trustworthy relationship with your retailers is to
provide them incentives. The advantage that nestle provides to its retailers is
the fact that nestle take’s back the stock that is not sold of by the retailer. This
is the major advantage as the retailers are satisfied that the stock that isn’t
being sold won’t be piled on. Thus it relieves the retailer of tension to worry
about the stock not being sold.

Distribution Recommendations
Nestle should increase its retailer incentives and should facilitate retailers.
They should provide Nestle Freezers/chillers customized only for Nestle fruit
yogurt so that the availability of Nestle Fruit Yogurt at convinent stores can be
made possible.

TARGET MARKET

The target market for nestle fruit yogurt are the young ones of age between 5 –
18 yrs. It is directed towards only the urban areas of Pakistan. It is specially
offered for the upper & middle class, specifically the young ones are the main
focus because this is more concerned with the health and nutrition. As yogurt
is consumed in very large quantities in Pakistan, it can be predicted that the
fruit/flavored yogurt will be seen in the same light with the added attraction of
different flavors. It can be Nestlé’s future pillar brand. Due to lack of
awareness, the target market is little in number but it will surely increase.

MARKETING INTERFACE

PRODUCT

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Nestle fruit yogurt currently is being offered in 3 different flavors i.e. mango
strawberry & peach in a 100g cup. Strawberry is the most popular among all
the 3 flavors & is consumed more then the other two. In time nestle intends to
add a few other flavors keeping in mind the increasing awareness. The fruit
yogurt itself was brought into the Pakistani market by Nestle itself & still there
is a lack of awareness about the product. However, still bearing in mind the
limited promotion that is done on it & the lack of awareness of it in the
market. Its rate of consumption is very much acceptable. The quality of the
product is beyond a doubt very satisfactory & the chunks of the fruit in the
yogurt add more value & taste to it.

PRICE

The price of the fruit yogurt is 15 rupees/cup. Keeping in mind the flavors
being offered the price is considered quite reasonable. The fact that Nestle
replenishes its stock after 10 – 15 days if not sold at the retailers outlet is
another added benefit, provided at this low a price. Besides this the great
quality offered with chunks of fresh fruit in the yogurt proves beyond a doubt
that it is worth its price.

PLACE

Nestle is being distributed in only the major stores of the city (i.e. Alfatah,
Tesmart & Shezan etc) it is not placed in every other retail outlet. However the
placement is expected to grow with time. The barrier again to its bulk
placement owes to the fact that the fruit yogurt needs a freezer to be stored and
not every retailer in the city has one thus proving a hurdle in its placement.
Therefore, out of 23,000 retailer outlets in Lahore Nestle Fruit Yogurt is
distributed to 2,600 retailer outlets which is nearly 12% of the total retailer
outlets.

PROMOTION

Another major ‘P’ of marketing interface is promotion which is to be in the

focus. Billboard is seen anywhere particularly of fruit yogurt. Only few
posters are used for the sake of promotion. The fact that it is not being

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promoted heavily owes to the policies set by nestle i.e. the volume of sales
determines how much they spend on its marketing & promotion activities.
However, currently the fruit yogurt is not providing the company with large
sums of profit which is causing limitation to its promotion. Therefore the more
the profit the fruit yogurt generates from the market the more will be spent on
its promotional campaigns.

STRATEGIC RECOMMENDATIONS

PRODUCT

This product is a value-added product as it contains fruit chunks in yogurt.

Moreover, the benefits of yogurt make it a healthy and nutritious product. The
result of research gathered from the survey is in favor of offering more flavors.

Addition of more flavors:

Currently Nestle is offering three flavors that are:

1. Strawberry (Maximum sales generated)

2. Mango
3. Peach

We are thinking to expand the product range by adding more variant in terms
of flavors. They would be

1. Banana
2. Chocolate
3. Vanilla
4. Cherry
5. Mixed Fruit

Usually these flavors are liked by majority. By adding more flavors market
range would increase and the yogurt would become more appealing and
variation in different dishes and daily routine.

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More uses different recipes like desserts

Our main focus would be on increasing the uses of this fruit yogurt because
this will give us sustainable advantage. And it would no more be used as a
snack but become an essential ingredient of some very important dishes.

PRICE AND PACKAGING

Price:

We believe that the price is quite justified and provides value for money.

Resizing of the pack:

We thought that the basic factor behind the failure of the Nestle yogurt was its
size (100g). According to our survey of middle aged housewives from middle
and upper classes and we found out that the basic drawback was its small
quantity. This was mainly due to the fact that the children were not satisfied
after eating the yogurt. They still felt hungry and asked for more which results
in final dissatisfaction of the mothers which results in less purchase of the
product as there are other snacks which fulfill the children’s needs such as
indirect competitors like ice cream, chips like Slanty etc. In order to prevent
that and expand our target audience we have decided to increase the size from
one to three which are as following:

• 100g Rs.15
• 250g Rs.25
• 500g Rs.45

PEOPLE

Different Target Market:

Along with the resizing of the product, we also recommend to change the
target market. The target market consists of target consumer.

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Target Consumers:

We are changing our target consumers from average age women to the whole
family which includes kids, teenagers, mothers and fathers. We have shifted
the focus from kids to the whole family which would result in increased sales
of the product resulting from more household consumption. Teenagers would
prefer to eat flavored yogurt instead of the same old yogurt. For old age
people, it is highly beneficial for their health as it lowers the cholesterol level
and strengthens their bones.

PROMOTION

We will be promoting nestle fruit yogurt through the following channels:

• TV program
• Kiosks
• Advertisement in magazines, newspapers and television
• Billboards
• Banners

TV Program

Daily 5 minute TV program @ 8:30 pm

We will be broadcasting recipe program in order to promote fruit yogurt and

to increase uses. We will be telling different recipes in which we will use fruit
yogurt. These recipes will be according to our culture as this factor will help
us to start thinking about dishes in which they can use fruit yogurt.

We selected that time as we believe that this the time at which most of the
households ladies watch Television. And as also these dishes will be quick to
make and at 8:30 mostly families are thinking about dinner so that’s the best
time to promote Nestle fruit yogurt in dishes.

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Kiosks

The kiosks are going to be performing two activities simultaneously one is that
of offers and the other of providing related information.

New Offers via Kiosks:

• The first offer is reduced price on 100g pack

That discount attracts them enough to taste the product and develop repeated
purchase and to buy it for their families as well. The offer is as follows:

100g Rs.15 @ 33% discount = Rs.10

• The second offer is a recipe with a pack

The second offer lets the customers discover the alternative uses of the product.
For that we are providing the customers with a recipe so as to increase sales.
This might just as well result in habitual buying if the recipe turns out to be
really good.

1 recipe with one 500g pack

Health and Nutrition Information via Kiosks:

We will be giving information regarding different things such as

• Fruit yogurt addition in your daily life

We would tell people about the different benefits the yogurt gives you by
adding it in your daily life such as

1. Reduces Gastric problems: Yogurt with active cultures may help

certain gastrointestinal conditions, including lactose intolerance,
constipation, diarrhea, colon cancer, and inflammatory bowel diseases.
The benefits are thought to be due to changes in the microflora of the gut,

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the time food takes to go through the bowel and enhancement of the
body’s immune system.

2. Protection against Ulcers: Specific strains of Lactobacillus

acidophilus may protect against stomach ulcers by suppressing the growth
of Helicobacter pylori, a known ulcer-inducing bacteria.

3. Cholesterol Lowering: The blood cholesterol lowering effect of

fermented milk was demonstrated more than 30 years ago. In a study of
older adults, intake of about 1 cup of yogurt with live cultures per day for
one year prevented an increase in blood total and low-density lipoprotein
(LDL) cholesterol levels.

4. Anti-Cancer Effects: The possibility that lactic acid bacteria in

cultured dairy foods may protect against certain cancers such as colorectal
cancer, and possibly breast cancer, has been investigated.

5. Enhanced Immunity: Intake of yogurt may improve some of the

body’s immune defense responses. When adults consumed 1 cup of yogurt
with live cultures per day for one year, allergic symptoms decreased.
Further studies are necessary to confirm this beneficial effect of yogurt on
the immune system.

• The nutrients in yogurt and their benefits

We will tell seven different benefits of yogurt related to its nutrients and why
to enjoy yogurt. These would be as follows:

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1. Be Fit: Yogurt contains calcium, which can help with

weight management.
2. Be Vital: Yogurt is a good source of protein for
muscle maintenance.
3. Be Comfortable: Yogurt has active cultures that help
milk digestion.
4. Be Strong: Yogurt has calcium, essential for strong
bones.
5. Be Nourished: Yogurt contains important nutrients for
children’s growth.
6. Be Proactive: Yogurt provides friendly bacteria for
your digestive tract.
7. Be Happy: Yogurt is a great-tasting and satisfying
part of your healthy diet.

Kiosks Points:

• Alfatah
• Pace
• Al-Hafeez Tower
• HKB Y-Block Defence
• On Mall Road near pizza hut

We have selected these particular areas because our target market i.e. middle
and upper class families visit these areas quite often. The traffic in these
particular areas is relatively high. The people visiting such shopping malls
have a tendency towards impulse purchase as a matter of fact a survey shows
that most of our purchases are a result of impulse buying behavior.

Billboards

The strategy for billboards display would be to put them on the most seen
areas of Lahore. The locations that have been chosen by us are the most

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prominent locations of Lahore. The campaign is going to last four months at

least so the calculations are as follows. The areas that our billboards are going
to be displayed directly target the target audience that we want to convey our
message to. And in places like Liberty and Mall are shopping headquarters for
Women which are our target audience. This way we might just encourage a
spontaneous urge for the purchase of our product among our target audience.

• Liberty Square rent for Billboard 1 (Rs.300,000/month)

• Defense Road rent for Billboard 2 (Rs.150,000/month)
• Jail Road rent for Billboard 3 (Rs.80,000/month)
• Gymkhana rent Billboard 4 (Rs.65,000/month)
• Lower Mall Road rent for Billboard 5 (Rs.42,000/month)

Expenditure on Billboards

Printing Cost Rent for 4 months

Billboard 1 250,000 300,000(4)
Billboard 2 400,000 150,000(4)
Billboard 3 100,000 80,000(4)
Billboard 4 120,000 65,000(4)
Billboard 5 50,000 42,000(4)
Total 920,000 2,548,000

Total Campaign Cost = Rs. 3,468,000

Banners

The banners are going to be displayed on the busiest main roads of Lahore.
Jail road for one is known for the amount of heavy traffic that it has because of
the hospitals, colleges, offices etc. Mall road is the shopping destination for
many people of Lahore. The social class decreases from upper mall to lower
mall. Gymkhana is a major attraction for many elite of Lahore on upper mall
and HKB a destination for many shoppers on lower mall. We will be
displaying 30 banners on Jail Road and 45 Banners on Mall road.

Expenditure on Banners

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Printing Cost x Quantity Expenses for 4 months

Jail Road 5,000(30) 600,000
Mall Road 5,000(45) 900,000
Total 375,000 1,500,000

Total Campaign Cost = Rs. 1,500,000

Magazine Ads

Those magazines that target our target market will the best selection. The
magazines that have been chosen are directed towards mothers, the magazines
are such that are mostly read by married educated mothers. And along with
that Young Times directed towards children. For targeting young girls, Pink
would be the best option as many health issues are discussed in it. These
magazines target our target audience as well as our target consumers and this
campaign is going to run for 4 months. The feminine magazines specifically
focus on the issues of women. Aurora Targets the people that are in the
corporate world, the big position holders in companies. Most of the people
who read aurora are middle aged so they need to take special care of their diet.
In this manner we would be focusing on almost all of our target market except
the women who don’t read English magazines. For them we have a lot of our
other strategies.

Expenditure on Magazine Ads

Printing Cost Expenses for 6 months

She Magazine 15,000 75,000
Young times 9,500 190,000
Pink 6,000 125,000
Aurora 8,500 165,000
Total 39,000 555,000

Total Expenses = Rs. 555,000

Newspapers Ads

The newspapers that we are targeting are Dawn and Jung. Dawn is read by the
well read middle and upper class people who are our target audience. Dawn
would be attracting teens as well because it is read by youngsters and school

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going people as well. Jung is going to be focusing that middle and upper
middle segment that are in a habit of reading Urdu newspaper. Along with that
Jung might just as well give us another edge i.e. it is also read by many other
segments which are not our direct target market but this campaign would also
cause them to do a little bit of purchasing as well thus increasing our sales.
The sales that would be a result of Jung are therefore difficult to forecast but
seeing the previous effectiveness and trends it is however possible to have a
realistic estimate which would be close to the actual sales. The forecast would
be done on three levels i.e. minimum, maximum and mid level. The minimum
level would indicate the minimum sales we expect as a result of this campaign
so as not to incur loss, the maximum level would indicate our potential sales
and middle level will indicate the level of sales that this campaign should
generate on the average. This campaign would last for 6 months from the date
of its launch.

Expenditure on Newspaper Ads

Printing Cost Expenses for 6 months

Dawn (Sunday Edition) 18,000 432,000
Jung (Sunday Editions) 24,000 576,000
Total 42,000 1,008,000

Total Expenses = Rs. 1,008,000

Advertisement

The TV ads are going run during the family drama hours. It’s a family product
and females are very much into watching dramas so therefore during dramas
Nestle Yogurt’s ad is going to run. The ads are especially going to run during
Sunday dramas as it is a holiday and the whole family is in the TV lounge
watching dramas. An average Pakistani watches 6 hours of TV daily so it is
very crucial for us to run ads on TV. The choice of the channels is based on
the attribute of showing family shows i.e. these channels are family
entertainment channels. The campaign is going to run for a half year i.e. 6
months and 8 times in between 7 to 11 pm.

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Expenditure on Advertisement

Expenses for 10 sec Expenses for 6 months

(8 times/day)
ARY digital 4,000(180) (8) 5,760,000
Hum 3,200(180) (8) 4,608,000
Wikkid Plus 2,800(180) (8) 4,032,000
Aaj TV 3,500(180) (8) 5,040,000
Total 12,500 19,440,000

Total Expenses on Advertisement = Rs. 19,440,000

Concept of Commercial:

The TV ad begins with the scenario in which a family including father and two
young kids sitting on dinning table waiting for their meal in a conventional
style say to their mother, “Mom, we are hungry, where is the food?”. Mother
appears with a dish of rice and a bowl of yogurt. Kids reply, “Are you with the
same recipe today?” and make sad faces. They start having their meal and also
watching an old movie on the television. Father observing his family suddenly
says “I have something new for you” and switches the movie channel to
another channel in which people are dancing, enjoying and having fun. As the
camera focus on the family, the scenario is entirely changed. Their getup is
changed and they are having fruit yogurt. In the end father says, “Like us,
change your lifestyle and tingle your taste buds with Nestle Fruit Yogurt.”

Ad Broadcasting Strategy:

Advertisement should be broadcasted on those timings in the family is

watching TV. The ad broadcasting strategy is obviously to give ads when our
target market is in front of the TV. This time is during the peak hours when
females are mostly watching TV and many times the whole family is watching
the dramas. We have chosen this time because mostly the females are engaged
in TV watching activities. They are free from cooking meals, washing clothes
and all the other stuff that they do.

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MONITORING AND REVIEWING

For monitoring and reviewing the strategies recommended should proceed
with following outline.

• Taking feedback from the workforce to get the information the changes
occur in the current scenario.
• Analyzing the data of the sales after the plan has been implemented.
• Taking feedback from the different retailers about the
increase/decrease in the demand.
• After 2 months of the implementation of the strategic
recommendations, we can conduct a consumer survey to get the
acknowledgement.

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Locations for Billboard:

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REFERENCES/APPENDICES

• The introduction and history of nestle is gathered from nestle website

www.nestle.com and www.wrightreports.com.pk
• General information about yogurt
www.wikipedia.com and www.webmd.com

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