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EXECUTIVE SUMMARY.................................................................................................. 3
HISTORY....................................................................................................................... 4
MISSION STATEMENT.................................................................................................. 5
NESTLE BUSINESS OBJECTIVES................................................................................ 5
NESTLE PRODUCTS..................................................................................................... 5
CUSTOMER ORIENTATION.......................................................................................... 5
MARKETING ENVIRONMENT........................................................................................ 5
NESTLS MICROENVIRONMENT............................................................................. 5
NESTLS MACRO ENVIRONMENT........................................................................... 5
MARKETING OFFERING............................................................................................... 5
EFFECT OF EXTERNAL ENVIRONMENT ON NESTLE DELICIOUS JAM........................5
MARKETING RESEARCH AND MARKETING INFORMATION.........................................5
OBSERVATION.......................................................................................................... 5
EXPERIMENT............................................................................................................ 5
SURVEY.................................................................................................................... 5
MARKETING STRATEGY............................................................................................... 5
MARKET SEGMENTATION............................................................................................ 5
GEOGRAPHICAL SEGMENTATION............................................................................ 5
DEMOGRAPHICAL SEGMENTATION.........................................................................5
TARGET MARGET......................................................................................................... 5
VALUE PROPOSITION................................................................................................... 5
NESTLE LOGO & FAMILY BRAND.......................................................................5
COMMUNICABLE............................................................................................... 5
CONSUMER BEHAVIOUR.......................................................................................... 5
CUSTOMER RELATIONSHIP MANAGEMENT................................................................5
STRATEGY FOR CAPTURING VALUES..........................................................................5
PRICE........................................................................................................................ 5
PRICING OBJECTIVES.............................................................................................. 5
FACTORS AFFECTING THE PRICE OF NESTLE JAMS...............................................5
PLACE....................................................................................................................... 5
1
RETAILING................................................................................................................... 5
RETAILERS CLASSIFIED BY MARKETING STRATEGIES...........................................5
CHANNEL OF DISTRIBUTION....................................................................................... 5
VERTICAL MARKETING SYSTEM.............................................................................. 5
MULTIPLE DISTRIBUTION CHANNELS......................................................................5
PROMOTION............................................................................................................. 5
STRATEGIC PLANNING................................................................................................ 5
BCG MATRIX FOR CURRENTLY PRODUCING SBUS.................................................5
DEVELOPING STRATEGY FOR GROWTH AND DOWNSIZING....................................5
SWOT ANALYSIS OF NESTLE JAM............................................................................... 5
STRENGTHS............................................................................................................. 5
WEAKNESS............................................................................................................... 5
OPPORTUNTIES........................................................................................................ 5
THREATS.................................................................................................................. 5
RETURN ON INVESTMENT (ROI).................................................................................. 5
MARKET IMPLEMENTATION........................................................................................ 5
CONCLUSION................................................................................................................ 5
REFERENCES................................................................................................................ 5
EXECUTIVE SUMMARY
Our marketing project is about launching a new product
which is Nestle Delicious Jam, bring happiness in life. Nestle is not
producing jam currently. So we will introduce this product 1 st time
in market. The marketing plan for this purpose consists of many
strategies that we will use. We will compete the market because
our product will offer a unique combination of features e.g.
different flavors, bottle design, nutrients etc at a value added
price. Its target market will include all people but specially the
children. It will be available in all possible flavors and reasonable
price will be offer for Nestle Delicious Jam. The product life cycle
will start from the maturity stage by providing more values in
beginning. We will use corporate vertical marketing system for
Nestle Delicious Jam.
HISTORY
1866-1905
1905-1918
In 1905 Nestl merged with the Anglo-Swiss Condensed Milk
Company. By the early 1900s, the company was operating factories in the
United States, Britain, Germany and Spain. World War I created new demand
for dairy products in the form of government contracts. By the end of the war,
Nestl's production had more than doubled.
1918-1938
1938-1944
Nestl felt the effects of World War II immediately. Profits dropped from
$20 million in 1938 to $6 million in 1939. Factories were established in
developing countries, particularly Latin America. Ironically, the war helped
with the introduction of the Company's newest product, Nescaf, which was
a staple drink of the US military. Nestl's production and sales rose in the
wartime economy.
1944-1975
The end of World War II was the beginning of a dynamic phase for
Nestl. Growth accelerated and companies were acquired. In 1947 came the
merger with Maggi seasonings and soups. Crosse & Blackwell followed in
1960, as did Findus (1963), Libby's (1971) and Stouffer's (1973).
Diversification came with a shareholding in L'Oral in 1974.
1975-1981
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1981-1995
Nestl divested a number of businesses1980 / 1984. In 1984, Nestl's
improved bottom line allowed the Company to launch a new round of
acquisitions, the most important being American food giant Carnation.
1996-2002
The first half of the 1990s proved to be favorable for Nestl: trade
barriers crumbled and world markets developed into more or less integrated
trading areas. Since 1996, there have been acquisitions including San
Pellegrino (1997), Spillers Petfoods (1998) and Ralston Purina (2002). There
were two major acquisitions in North America, both in 2002: in July, Nestl
merged its U.S. ice cream business into Dreyer's, and in August, a USD 2.6bn
acquisition was announced of Chef America, Inc.
2003 +
The year 2003 started well with the acquisition of Mvenpick Ice Cream,
enhancing Nestl's position as one of the world market leaders in this product
category. In 2006, Jenny Craig and Uncle Toby's were added to the Nestl
portfolio and 2007 saw Novartis Medical Nutrition, Gerber and Henniez join
the Company
MISSION STATEMENT
Nestle is dedicated to providing the best foods to
people throughout their day, throughout their
lives, throughout the world. With our unique
experience of anticipating consumers' needs and
creating solutions, Nestle contributes to your wellbeing and enhances your quality of life.
Nestle is not only Switzerland's largest industrial company, but it is also
the World's Largest Food Company. The mission statement emphasizes on the
fact that Nestle products are available in nearly every country around the
world. Wherever one may live, only Nestle can provide the best and most
reliable food and beverage products to meet his/her needs throughout the
day, throughout the life. Especially, people on the move want to be able to
find good food wherever they are, whatever the time of day. 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
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the advantage that it offers caterers, fast food chains and other
restaurants a complete range of high quality ingredients, base
products and meal components, as well as leading consumer brands such as
Nescafe. Quality is the cornerstone of the success of the Nestle Company.
Everyday, 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. In addition,
the mission statement declares that Nestle has the ability to anticipate
consumers needs and create solutions. Nestle has proven this ability a
number of times by introducing new products that were required by
consumers.
NESTLE PRODUCTS
Nestle is a well-known company all over the world and
Pakistan. The company basically deals in food products as
their logo says Good Food, Good Life. Their major products
lines are:
MILK PRODUCTS
1) NESTLE MILKPAK UHT MILK
2) MILKPAK BUTTER
This product was launched in 1985 under the Milk Pak brand
name. It has been recently repackaged in a crisp white laminate,
the design of which bears closed resemblance to that of Milkpak
UHT milk. This new package design allows gaining strength from
Nestle Milkpak UHT milk. It is available in 200 and 100 gm sizes.
5) NESTLE EVERYDAY
6) NESTLE NIDO
Soon after it was introduced in the early 70`s as an imported product,
Nido full cream milk powder became the market leader. Local manufacturing
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CHOCOLATE DRINKS
1) MILOPOWDER
2) MILO RTD
To cater for consumer convenience, Milo RTD (ready to
drink) was launched in 1995 and is now available in an
attractive 180 ml slim pack. It is popular among all age
groups especially among the growing segment of nutrition
conscious consumers. It is an excellent substitute for cold
drinks.
COFFEE
1) NESCAFE CLASSIC
FRUIT DRINKS
1) FROST
It is a well-known brand launched in 1986 and has the
largest market share.
Positioned as a cold drink and an
alternate to cola drinks, its strength lies in the convenience
attached to its usage.
2) CEREALS
3) NESTLE RICE
An affordable starter weaning cereal and offers the flexibility of
preparation with a variety of meals. This was launched in
1994 and available in125ml pack size.
4) NESTLE WHEAT
5) NESLAC
Neslac is a growing up milk, formulated specially for 1 to 4 years old. This
was launched in 1994. It contains a right balance of proteins, calcium, iron,
vitamins and essential minerals in order to cater nutritional needs of growing
children.
CULINARY PRODUCTS
1) MAGGI 2-MINUTE NOODLES
Fast to cook, good to eat Maggi 2Minutes Noodles were launched with local
production in 1992, and doing so Nestle
pioneered the category of instant noodles in
Pakistan. It offers flavors like chicken masala,
chili and chatkhara.
CONFECTIONERY
In view of the impressive potential for confectionery sales in the
country, Nestle Milkpak established an independent sales and distribution
network for confectionery products. From three main cities in 1996, it has
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WATER
The launch of Nestle Pure Life in December 1998 was a truly historic
event. This marks the Nestle Pure Lifes entry into the countrys fast growing
water market. At the same time Pakistan became the first country where
Nestle launched the new brand. Nestle Pure Life is a premium drinking water,
produced to the highest standards of safety and purity. It is ideally balanced
with essential minerals. It is available in two convenient sizes of 0.5 and 1.0
liters. Capitalizing on its strong brand recognition, aggressive pricing and
supported by a strong marketing campaign, Nestle Pure Life has made very
strong inroads into the water market in Pakistan.
Nestl PURE LIFE is available around the globe today in Canada, USA,
Mexico, Brazil, Argentina, South Africa, Saudi Arabia, Jordan, Egypt, Lebanon,
Turkey, Russia, Uzbekistan, Pakistan, China, Thailand, and the Philippines.
Launched on the North American market in 2003, Nestl PURE LIFE is
destined to become the worlds leading and most widely distributed brand by
2010.
CUSTOMER ORIENTATION
Nestl is the customer oriented company from its foundation to till now.
In 1866 it introduced the food for babies who were unable to breastfeed, and
this formula saved the lives of many children.
Due to the customers realization over the company, Nestl's
production and sales rose in the wartime economy. The quality of the
products ultimately enhances the quality of the consumers life. In addition,
Nestl has the ability to anticipate consumers needs and create
solutions. Nestl has proven this ability a number of times by introducing
new products that were required by consumers.
Nestl is one of the few companies to have an information system that
commits the company to respond to information requested.
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MARKETING ENVIRONMENT
NESTLS MICROENVIRONMENT
1) SUPPLIERS
2) CUSTOMERS
Consumer markets are important for all organizations by marketing
perspective but for Nestle it is too important because
It is related to food and beverage industry.
Worldwide consumer markets
Consumed in the 85 countries of the world
Not only large but also dynamic
Completely focusing on changing behavior
Fictitious product will also have a consumer market
3) COMPETITORS
Every company tries to provide greater value and satisfaction than its
competitor do. Following are the main competitors of the Nestle Company Mitchells
Shezan
Rafhan
National etc
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b) TECHNOLOGICAL ENVIRONMENT
Currently nestle is using high technology and machinery which is one
of the key to success for the Nestle. It gives them the competitive
advantage.
Nestle uses better technology and machinery, it gives the customers
the healthy and clean environment so the consumers buy their
products more and they gain profit. With technological environment
there is no wastage of time
c) ECONOMIC ENVIRONMENT
Currently Nestle is at prosperity stage of Business Cycle. The major
economic factor which can affect the sale of Nestle products in Pakistan is
inflation.
e) DEMOGRAPHIC ENVIRONMENT
Nestle products are for everyone and for all group of people.
These products are usable by all categories of people, having
different ages but especially children
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MARKETING OFFERING
We are making a marketing plan of Nestle Delicious Jam. The launch of
Nestle Delicious JAM in Pakistan will provide the customer with the best jam
full of nutrients. In Pakistan, the launching of delicious and appetizing JAM
with the brand name of Nestle will generate huge revenue.
OBSERVATION
Nestle observes the attitudes, lifestyles and behaviors of the people
residing in every different country of the world. Nestle also observes the
major changes in the socioculture environment and hit the target through
Nestle products which are needed to be present in the market.
EXPERIMENT
SURVEY
SURVEY RESULTS
1-If nestle launches jam would you
like to eat it?
a) Yes
b) No
83.26%
14.3%
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c) not decided
2.44%
84.87%
b) No
15.13
c) Not decided
3-Nestle is going to provide you a jam
with some new flavors select those
you like.
a) Apple mango
b) Mango orange
c) Strawberry apple
9.09%
52.91%
11.2%
d) Strawberry mango
e) Apple orange
4-Why do you like nestle products?
22.6%
4.2%
37.9%
43.6%
14.3%
4.2%
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MARKETING STRATEGY
Nestle uses the societal marketing concept. Nestl designed and
launched the products according to the society. It meets the responsibilities of
the society. In the Muslim countries it makes sure to write Hilal at the
packaging of the products.
In the African countries Nestle build its water purification for free to provide
clean and purify water to the poor nations.
MARKET SEGMENTATION
To occupy a clear distinctive & desirable place related to competing
delicious jam in the minds of the target customers Nestle Jam will segment its
market only on geographic basis.
GEOGRAPHICAL SEGMENTATION
The Company will segment its market geographically on divisional
basis. They will divide each division in different zones and every distributor
will be restricted to sale its products only in his own zone.
E.g. Lahore will be divided into five zones like East, West, South, North,
and South west. Nestle Marketing strategies will focus on urban areas
because more of the revenue comes from that areas.
DEMOGRAPHICAL SEGMENTATION
There will be no demographic segmentation for Nestle Delicious Jam. If
we look Nestle Jam demographic segmentation, then we will find that our
product will be for everyone. People from any area, any culture, any age, any
sex, any belief and any income will purchase our Nestle Jam. It is not any
luxury item which will be used by a specific people.
TARGET MARGET
The target market will be up to 60 years of age and the core target will
be between 10-30 years of age. A specific demographic target market will not
be chosen for Nestle Jam; instead the goal is to develop a product to be used
by consumers of all ages - from babies to seniors. It will be intended as a
family product especially for families who work and have a short time for
making meal or breakfast.
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VALUE PROPOSITION
Nestle will use some competitive advantages or important attributes
which will help in occupying a good position in consumer's mind relative to
competing jams. These competitive advantages are as follow
1) CUSTOMER ORIENTED
Customer satisfaction is the focal point for the company. They will
provide the hygienic products to their customers. Products will be verified by
health and safety measures and international quality standards. Its will
provide different flavor to the customers and different offers which will the
Nestle jam a competitive advantage.
3) COMMUNICABLE
Nestle Delicious Jam will be a brand of Nestle which will show a big sign
of quality to customers. Due to its brand and name it will be very easy to
communicate.
CONSUMER BEHAVIOUR
Consumer behavior towards the Nestle Jam could be in terms of the
choice among the flavors. Some customers would choose the one
fruit flavor, while some customers would like the flavor of two fruits.
Consumers could be loyal towards their favorite flavors and could
have preference of one flavor of jam on the other flavor.
Consumers would buy the Nestle Jam keeping in mind the quality
and cost of the jam relative to those of competing products. The
consumer behavior will be more satisfactory towards the jam if the
taste and quality of the jam matches the consumers expectations.
CUSTOMER RELATIONSHIP
MANAGEMENT
Nestle jams will build profitable customer relationship by providing
them best taste best health at very best price. We are going to produce a jam
with number of important vitamins, iron, nutrition and lot and lots of health
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PACKAGING
Nestle will design and produce the jam bottles and the wrappers by
keeping focus on the following purposes:
To contain and protect the food products.
For the attractiveness of the product using packing of the product as a
tool.
As nestle is relevant to food products which are highly perishable so
packaging focuses on storage and convenience.
Its packaging will be reusable by the customers.
E.g. nestle bottles obtained from bottled jam.
Packaging will be made more impressive especially by increasing the
volume of bottles.
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LABELING
Nestle labeling will focus on persuasiveness.
Nestle will not give any expressed warranty on its daily usable Jam as it
gives on medical products
Nestle Delicious Jam's label will give all information about their product
like ingredients which will be used in it and all instructions regarding
product.
Retail price will also be shown on its label
BRAND
Nestle products use the brand name Nestle. The customer who come to
purchase nestle products, the name of this brand affects positively in the
mind of consumer. They prefer Nestle jam to other brands.
1) BRAND MARK
2) TRADE MARK
No other company will be able to use the name Nestle for himself
because Nestle has been registered as a trade mark.
If we look at jams in product life cycle then it is easy to judge that they
are at maturity stage. Because jam market has become the pioneer market
and at this stage its profit is positive and sales do not decrease because jams
companies reinvent their products in terms of packaging, labeling, and
vitamins and continue to add values into their products to capture values
from customers. There exists high competition among jams companies so
they need high distribution and promotion expenses.
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PRICE
In setting the price of product, the company will follow four steps
procedure as given below
Company will establish its objectives (Survival, max. supposed profit,
revenue, sale growth etc)
Company will determine the demand schedule which will show the
probable quantity purchased per period at alternative price
Company will estimate how their costs will vary at different output
levels.
Company will examine the competitors price
PRICING STRATEGY
1) MARKETING SKIMMING & PENETRATION PRICING
This strategy is used in any company when it launched a new
product. And it offers a high price for new product to skim maximum earning
more profit and revenue and in this way company makes fewer but more
profitable sales.
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2) BY PRODUCT
We will use by product pricing strategy for nestle with the
penetration. We will offer kitkat to our customers in introduction phase,
because we are more focusing on children and in this way we can easily
attract people for our nestle jam.
PRICING OBJECTIVES
The objectives for pricing nestle jam are as follows:
To achieve a target return
To maximize profit
Stabilize prices to meet competition
Market share Leadership
Product Quality Leadership
PLACE
As far as the distribution is concerned, NESTLE will make segmentation
with respect demographic and geographic basis. The distribution network
needs to be more extended; NESTLE will hire more potential distributors for
the distribution of NESTLE Delicious Jam in several parts of the country so that
their product will reach to every corner of the country.
RETAILING
Retailers plays a very important role in the sale of nestle products.
Nestle does not directly its products to the end consumers.
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2) SUPERMARKETS
3) CONVENIENCE STORES
To facilitate the consumer nestle will selling Delicious jam by the
convenience stores. A very large portion of the sale can be sold on
convenience stores.
CHANNEL OF DISTRIBUTION
DISTRIBUTION CHANNELS
Nestle do not sell the product directly. It sells its products by indirect
distribution channel.
Finishe
d
product
s
Whole
sellers
Retaile
rs
Consume
rs
We would also use the same distribution channels for our fictitious
product that the Nestle company is recently using e.g.; Indirect distribution
channel, Vertical marketing system, Multiple distribution channels.
PROMOTION
Thus company will hire, train and motivate sales people. It will set up
communication and promotion programs consisting of advertising, direct
marketing, sales promotion and public relation as mentioned below.
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ADVERTISING
SALES PROMOTION
DIRECT
MARKETING
PUBLIC RELATION
Print and
broadcast ads
Billboards
Contests
Catalogs
Seminars
Lotteries
Mailings
Annual reports
Posters
Gifts
Telemarketing
Charitable
donations
Brochures
Premium
Electronic
Company magazine
Leaflets
Exhibits
Shopping
Sponsorship
Directories
Sampling
TV shopping
Publication
STRATEGIC PLANNING
BCG MATRIX FOR CURRENTLY PRODUCING
SBUS
STARS
The two Sbus, Mineral water and Confectioneries fall into this category
of the BCG. These SBUs have high market share and high industry growth
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CASHCOWS
Milk products, Coffee and Dietetic and Infant food have a high market
share and are doing business in mature industries. Since the customers of
this product category are loyal, the marketing costs of these SBUs is quite
low and as a result a large amount of cash can be generated. Customer
Loyalty is a must for these Cash cows to maintain their market share.
The sales of the Milk products have increased to RS. 108,430000 from
RS. 87,758000. This huge increase in sales reflects the high market share of
this SBU. However, its growth rate is low because in general this category is
in its maturity stage that is a number of milk products have been launched
by Nestle, most of which are quite old. An innovation has not really been
made in this category. The same conclusion can be made about Coffee.
There is an already existing market for Coffee which is not increasing further
by a large amount.
The sales of Coffee were Rs. 46,89 000 in 1999 and Rs. 392,00 000 in
1998. This huge difference shows that a great amount of cash is being
generated from this SBU. Sales of Dietetic and Infant food rose to Rs. 60,935
000 from Rs. 52,655 000. The infant foods unit of Nestle is operating in a
mature industry. Like the milk products, the infant foods have been around
for a long time without barely any new product line being started in this
category.
QUESTION MARKS
DOGS
Chocolate and Fruit drinks fall into this category and they possess a low
market share and a low growth rate. Chocolate drinks had sales of Rs.
19639000 in 1999, which rose from Rs. 19541000 in 1998. This is quite a
small increase considering the rise in the sales of other SBUs. However, the
chocolate drinks are still profitable so the firm does not have to worry about
liquidating or getting rid of this SBU. The sales of Fruit drinks rose to Rs.
40,620 000 in 1999 from Rs. 38,103 000 in 1998. There has been a small
amount of increase; however it is not a lot compared to other SBUs.
Firstly, there is not a huge market for chocolate drinks in Pakistan.
People usually tend to buy light juices like apple or orange juice or Pepsi
instead of chocolate drinks. Secondly, regarding the fruit juices, there are not
a lot of flavors available currently in this category.
Nestle needs to introduce new flavors such as apple, grape etc. to
capture the market that prefer these flavors. This will not only increase the
sales of the SBU, but it will also increase its market share. At the moment,
additional amount of money is not being invested in these SBUs, as they are
not very profitable. Nestle is currently trying to maximize profits from this
category by minimizing expenditures and by differentiating the product to
build market share.
WEAKNESS
Communication may be weak
Lack of Awareness for the new product
OPPORTUNTIES
Concentrating on distributing areas will increase sales
Increase in product line by offering different flavors.
THREATS
Sharing of segments by the competitors
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MARKET IMPLEMENTATION
During the manufacturing of the product we would go for its
advertising. We would distribute broachers to create awareness. Then we
would hire some sign board in different major cities of Pakistan. And at the
same time we would go for TV and radio commercials. In all this process our
main focus would be on TV commercials and sign boards because now a day
these are the most popular things among the consumers.
CONCLUSION
Nestle is one of the latest and pioneer food producing company in
Pakistan
The company is performing very well for the financial point of view so it
will spend a huge amount on the promotion of Nestle Delicious Jam
It is leader in food goods in Pakistan. It will provide best quality of food
It pays a huge amount annually in the form of taxes to the government
of Pakistan
Companys distribution channels are very effective
It has more variety in food products line as compared to its competitors
In consumer products the management of Nestle believes in pull strategy
i.e. creating pull through advertising
REFERENCES
1. www.google.com
2. www.info.com
3. www.nestle.com
4. www.wikipedia.com
5. www.scribd.com
6. www.answers.com
7. Internship Reports
8. Nestle Annual Reports
9. Mr.Muzamil Hussain
10.Mr.Danish
Ph#0300-4263252
Ph#0321-4144196
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TOTAL WORDS
7,033 words
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