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Executive Summery
We are analyzing the marketing plan of Nestle which is
an FMCG
company. Our analysis of Nestle will include the current
market
situation and strategic analysis of the company. We will
see the various
strategies that can be used by them for improving their
product. Nestle
has been serving worldwide with its excellence in
product safety,
quality and value. It provides many products which
include dairy
products, beverages, water, and infant dietetic and
confectionary. We
have taken NESTLE WATER for our project report. Their
aim is to
provide customer with pure drinking water on suitable
prices make the
product as convenient as possible. According to their
claim that they
provide the best food through out the world. For Nestle
Pure Life they
Introduction Of Nestle
Nestle is the leading FMCG company of Switzerland
established by
Henri Nestle. Nestle is serving worldwide with its more than
500
factories in 86 countries comprising almost all continents.
Nestls
product portfolio is more than 500 products all over the
world serving
best to their customers.
Henri Nestl endowed his company with the symbol derived
from his
name. His family coat of arms, the nest with a mother bird
protecting
her young, became the Company's logo and a symbol of the
Company's care and attitude to life-long nutrition. The Nestl
nest
represents the nourishment, security and sense of family
that are so
essential to life.
The first product made by Henri Nestl, a food for babies
who were
unable to breastfeed. His first success was a premature
infant who
could not tolerate his mother's milk or any of the usual
substitutes.
Nestls Vision:
The consumer's voice is the key to Nestl Pakistan's vision
and
working. Whether you live in the remotest village or the
metropolis of
Karachi, Nestle consumer services team stands ready to
listen to your
concerns and provide answers about our products and
guidance on
Mission Statement
good food
S = Specific
M= Measurable
A = Actionable or Achievable
R = Realistic
T = Time Frame
Market Share
Nestle is now a days willing to have more and more
market share so
that it could achieve the goals that are set. The goal for
market share
will be discussed below.
Nestle occupied 85% of drinking water market in all over
the Pakistan.
In Lahore
Nestle Pure Life has 69%of total market, Sparklet has
13% and Cool
have 11% and remaining 7%are kept by other local
companies. In
Karachi 50% of market is kept by Nestle and 25% by AVA
and
remaining 25% is kept by other local companies. As for
as Islamabad is
concern Nestle Pure Life has 65%of market Share.
Marketing Manager
Market manager is an employee who is responsible for
planning
and controlling its marketing activities and budgets
.Marketing
manager take cares the promotional strategies of the
products.
Manager try to use innovative ideas for the improvement
of product in
market.
Finance manager
The field of finance covers the economics of the
contingent claims. Financial economists study the valuation
of these claims, the markets in which they are traded, and
their use by
individuals, corporations, and the society at large.
Finance manager and marketing manager are related with
each other
to meet their marketing targets. It is important because
alone
marketing manager can not promote any marketing strategy
without
any budget.
Geographic Segmentation
The company has divided its geographic segmentation in
several
regions. First they have the segmentation of a whole country
and from
each provincial capital, they divided its areas into north,
east, west,
south. So that it could be easy for the company to work
efficiently on
its supply chain management.
Demographic Segmentation:
Nestle Pure Life isnt a supreme quality product that only the
high class
uses. The product is for all. Infant to seniors. There is no age,
sex,
income and any other kind of limitation on use of the
product. The
product is for all. Anyone can use the product as per need .
Targeting Strategy
According to our observation and market survey, we
have concluded
that as such there is not set demographic techniques to
set the specific
target market. Because, water is something that
everyone uses.
Everyone can use any size of bottle that Nestle is
offering. There are
some variations that can be made throw OUR
OBSERVATION but not
from the company.
Nestle Pure Life comes in four different sizes. These four are
targeting
different types of people and lifestyles.
where we will not find pure water but the infiltrated water.
That could
harm your body and cause the major problem called Diaria.
That is one of the harmful diseases which can also lead to
FAB ANALYSIS
but efficient
2. Develop and manage simplified and effective supply
network to
achieve a high level of service
3. Create a continuous improvement culture driven by
performance
measures and reward.
Publicity
Pure Life was launched on 14 December, 1998 in Karachi
with a huge
amount of enthusiasm and positive response shown by the
locals. The
successful story of its launch was printed in all the local
newspapers
the next day. This greatly helped in creating awareness of
the brand
Sales Promotion
Specific promotions of Nestle Pure Life were arranged in
some of the
key outlets of Lahore. Elaborate shelf space was
acquired for product
display and specially designed POS material was
extensively used to
promote sales. On a 12-bottle purchase of 1.5 ml, one
1.5 ml bottle
was offered free to consumers. Similarly on a 6-bottle
purchase of 1.5
ml, one 0.5 ml bottle was offered free. Regarding trade
promotion, the
retailer was also given an additional discount of 4 %
during this sales promotion. Not only did the sales of
Nestle Pure Life grow
tremendously during the promotion, these continued at
a higher pace
even after it was over.
Competitive Position
Competitive position of Nestle tells that how much its
competing its
competitor and what it has unique from its competitors.
It tells its
position in the market that where it stands in market.
And also tells us that what its competitive position is in
the market. So we would
analyze its position from two aspects
SWOT Matrix Analysis of the company
Core Competencies & Key Success Factors
Strength
Weakness
Communication is weak
Lack of Awareness
Weak Distribution Channels
These distributors, though observing the rapid increase
in customer
demand refuse to hire new, more efficient and
innovative staff that
would take the organizations to rise rather they stuck to
their old staff
members.
Opportunities
Concentrating on these areas of weakness can
increase sales
It has opportunity to advertise its product in better
way.
It has strongest opportunity to increase its product line
by
making segments in mineral water. Mineral water should
be of different
taste E.g. like AQUA FINA in USA has introduced mineral
water of
different taste. So it captured the market.
By increasing product line it can also increase its sales.
Threat
Segments are being shared by competitors
Under cutting by competitors.
Uncertain conditions will affect the sales
Competitive Analysis
Competitive analysis includes the comparison of one
organization with
its competitor. It differentiate product and tells which
product stands at
which position. It tells about the differentiation of
characteristics and
weaknesses of the product with its competitors.
As we know that more important competitor of Nestle is
Aqua Fina.
Marketing Financials
GAP Analysis
GAP analysis stands for identification of GAPS in the
market, which a
company can capitalized upon. This means that the
difference of
customer wants, and what company is giving. The
remaining portion is
called GAP Analysis. GAP Analysis for company is given
below.
If we compare Nestle with Aqua. Then we would come to
know that
Aqua Fina is providing mineral water of different tastes
in USA. And
sooner it would introduce mineral water of different
tastes in Pakistan.
But if we see Nestle, its only giving pure water of one
taste. As
customer wants different taste in water. So this is GAP
analysis
between company and customer. Major difference is of
different
segments. So Nestle should introduce different tastes in
water to meet
customer requirements.
Solution
The company should buy the existing plants by any mean in
Pakistan
to fulfill the demand of market. Because to setup a new plant
can be
costly for the company. It is also possible that company
should work