This reports presents a thorough evaluation of Nestle Milkpaks print advertisement in the light of various concepts studied during

the course of Consumer Behavior.

Consumer Behavior
BBA III / Section H
Submitted to: Ms. Sadia Ehsan Cheema

Muhammad Ali Zain Noor

Table of Contents
Introduction ..................................................................................................................................... 2 Background ................................................................................................................................. 2 Other brands of Nestle in Pakistan: ............................................................................................. 3 SWOT ANALYSIS ..................................................................................................................... 3 Evaluation of MilkPaks print advertisement ................................................................................. 7 Symbolic Internationalism (Multiple Roles/Role Identity) ......................................................... 7 Application of Self-fulfilling Prophecy and Self Completion Theory ........................................ 8 Self-Concept (application of its dimensions) .............................................................................. 8 Content (facial attractiveness versus mental aptitude): ........................................................... 9 Self Esteem .............................................................................................................................. 9 Accuracy .................................................................................................................................. 9 Self-Consciousness.................................................................................................................... 10 Freudian Theory and its application .......................................................................................... 10 Neo-Freudian Theory and its application .................................................................................. 10 ABC Models .............................................................................................................................. 11 The Fishbein Model .................................................................................................................. 12 Beliefs .................................................................................................................................... 12 Objects ................................................................................................................................... 12 Attributes ............................................................................................................................... 12 Benefits .................................................................................................................................. 12 Source used and its implications on brand ................................................................................ 13 Message construction format and type of appeal ...................................................................... 13 Elaboration Likelihood Model .................................................................................................. 13

NESTLE MILKPAK PAKISTAN

Introduction
Nestle Milkpak was launched in 1981; it has become synonymous with quality milk. Backed by a very strong brand name, aggressive marketing and distribution plans, consistent quality and availability through out the year, MILKPAK UHT has been extremely successful. In September 1999, MILKPAK UHT milk was launched as NESTLE MILKPAK UHT MILK.

Background
Nestl have been serving Pakistani consumers ever since 1988, that is when Nestl based in Switzerland and a very well established brand in the world acquired the share of MilkPak in Pakistan following their strategy of acquiring well established local firms. Nestl acquired 40% share in MilkPak initially. MilkPak was the first tetra pack milk that was introduced in Pakistan in 1981 with green and white packaging that is associated with Pakistani flag. It promised natural and healthy milk from its name and packaging. It further gained strength when it bought by Nestl which brought its core competencies with it and helped MilkPak to expand. From the start MilkPak was very well-received and the brand soon became synonymous with high quality milk. MilkPak first face completion from Haleeb in 1986 which launched its uniquely packaged blue tetra packs in the market. Nestl Switzerland from the very beginning of acquiring MilkPak started investment in cooling tanks. Between 1988 and 1992, 100 milk tanks were installed in Pakistan by Nestl. 1992 onwards, with full support from the Nestl headquarters in Switzerland, restructuring of the milk collection operation and the provision of agricultural technical assistance became top priorities for Nestl MilkPak. The investment paid off and within a decade, Nestl's purchase of fresh milk had quadrupled, and the number of small farmers selling milk to Nestl tripled in number. In 2008 MilkPak hit the market share of 40% in the dairy milk category.

Other brands of Nestle in Pakistan:

Nestl Juices Nestl Nesvita Nestl Yogurt Bottled Water Chocolate KitKat Baby Food Brands Maggi noodles Nescafe

SWOT ANALYSIS

Strengths: A socially responsible Company. Nestl MilkPak Limiteds products enjoy strong brand image and market pull. Innovative and constantly growing product line. Nestl MilkPak launched 17 new products, including variants of existing products in recent past. Sales force is the major resource strength in terms of physical possessions of the company. Marketing strategies employed by the company are innovative and draw in customers. Financial, marketing and sales strategies are devised by gauging the customer demands. Periodic research is carried out to judge market trends. It is a large scale multinational organization, with copious funds and has the competence of acquiring weaker firms by throwing them out of competition
3

Growing Sales and profits. Major shareholder in the food industry of Pakistan. Aggressive Marketing. Efficient Distribution networks throughout the country. Quality Products. Environment Friendly. Skilled labor. Educated staff. Arrangement of events. Brand name Easy to approach outlets. Physical evidence Strong Brand image Quality product Solid Financial position Strong supply chain network Qualified work force Commitment to High Quality Products Focus on research and development, estimations of UHT Milk Production and Consumption up to 2008 09

Weaknesses: Selective investment due to uncertain economic and political conditions. Feasibility of new products needs to be analyzed, e.g. Nestea was launched some years back but it failed because no customer demand for it existed. Relatively a new company in comparison to its rivals e.g. Lever Brothers. Low levels of inventory maintained can be dangerous. No credit sales.
4

Low sales margins due to highly value added products. They cannot launch many of its expensive international brands due to the lower income groups. Physically impossibility to have target market. There is weak marketing of MilkPak as there is no advertisement of MilkPak on official website. Lack of awareness among the target market. It Dependency on others (govt. & sponsors) for the arrangement of events. The target market of Nestl MilkPak is upper middle and high class because lower middle and poor class cannot afford to buy UHT milk due to its premium price.

It is a main weakness of MilkPak that there are different companies of milk but the name of Nestl MilkPak is always stand in the last because of low advertising and marketing.

Opportunities:

Pakistan is the seventh largest producer of milk in the world with annual output of over 22 billion liters. There are substantial growth opportunities considering the average capitulate of Pakistani animals at only 1,100 liters/annum as compared to 6,000 liters/annum for animals in Europe and USA. There are nearly 20 million milk producing animals in the country, mostly in Punjab (80%).

The overall milk market in Pakistan is 20 billion liters, out of which processed milk contributes only 3 million liters. Nestl MilkPak along with other processed milk businesses makes a payment of only 2% to this large market.

Nestl MilkPak has stretched out its product range by entering the cold dairy market recently by launching Nestl plain yogurt and now fruit yogurt is also added to it. To expand the cold dairy products range, Nestl fruit yogurt is the latest addition to this group.

The cold dairy market offers many opportunities for the company which can capitalize these products by banking on its superior quality milk. The coffee brand also offers many opportunities for the company to expand by tuning the taste of the masses towards coffee. Credit policy can be implemented to increase sales.

Threats: Price fluctuations due to rupee devaluation as raw material are imported. The uncertainty of economic conditions poses a great threat as the major funds invested in the country come from outside Pakistan. The present economic crisis in the world, led to the withdrawal of foreign management from the company and the investment has come to a halt. Competition with Nestls owns smuggled brands. Effect of Seasonalitys upon sales. Imported raw material, in some of the companys products. Major player may enter target market Legal and ethical issues. Market segment growth could attract new entrants.

Evaluation of MilkPaks print advertisement

The print ad we are going to evaluate according to the various concepts studied in consumer behavior are as follows

Symbolic Internationalism (Multiple Roles/Role Identity) Symbolic internationalism stresses that relationship with other people play a large role in forming the self. It means that people behave differently in different situations. As a woman, she is going to behave differently at work, home and social gatherings. We share stereotypical behaviors according to the environments and situations we live in.

The tag line of Milkpak says, Banaye Mazboot Gharana, which implies that Milkpak helps you keep your family safe and strong. As in the ad shown above, there is a woman who is acting as a mother and house wife and is shown performing the stereotypical behavior of a mother who is concerned about her familys health and is shown helping her son ride the bicycle safely along with her husband giving the child another hand. On the other hand, the kid is also looking back to her mother for the love she is showering on him and thus he is also playing the stereotypical behavior of a son. This would overall give an impact on consumer that mothers need Milkpak to keep their family strong, and husbands who are usually responsible to earn for the family would make sure the availability of Milkpak to fulfill and play that stereotypical behavior of a good husband who would in turn help his house wife to take care of the family. Application of Self-fulfilling Prophecy and Self Completion Theory Now, the tag line leads to self-fulfilling prophecy theory through the notion of keeping ones family safe and strong. Self-fulfilling prophecy comes in to play when people expect you to behave and look in a certain way. For instance, in the case of the kid been shown in the ad, it would be expected of him to be fit and strong and whenever he would feel hes falling short of expectations, he would want to go ahead and consume Milkpak to overcome the shortcomings. Similarly, self-completion theory suggests that people who have an incomplete self-definition tend to complete this identity by acquiring and displaying symbols they associate with that role. While looking at the ad, as a mother, she associates the symbols of care and responsibility with herself and tries to displays the behavior by taking care of her family through Nestle Milkpak and thus being a good mother, and a house wife. Self-Concept (application of its dimensions) The self-concept summarizes the beliefs a person holds about his own attributes and how he evaluates the self on these qualities. The ad in question shows a responsible mother, a motivated son, and successful father and to sum up a complete family has been presented who are users of Nestle Milkpak to take care of their health. Self concept has various dimensions such as content, self esteem and accuracy. Lets consider these dimensions according the print ad.

Content (facial attractiveness versus mental aptitude): The characters shown in the ad are happy, confident and have the positive facial expressions implying they are attractive facially and have the right mental aptitude meaning they seem to have made the right decision by choosing Nestle Milkpak that makes their household strong and fit.

Self Esteem Self-esteen refers to the positivity of a persons self-concept. People with low self-esteem expect that they will not perform very well, and they will try to avoid embarrassment, failure, or rejection. According to this ad, consumers would love to get Milkpak because it would elevate their self-esteem as the characters presented in the ad show high self-esteem and confidence they get after using Milkpak. Accuracy It is the degree to which ones self-assessment corresponds to reality. It is the cognition factor plus the reality factor that relates the belief consumers associate with the brand and their reality. Milkpak is an alternative to the plain milk available at milk shops where unpasteurized milk is sold which doesnt take into consideration the hygiene and cleanliness factor. The actors in the ad present they have made the right choice by using the big brand Nestle. After studying these dimensions in the light of the ad, it calls for a self-comparison that a consumer would perform after having a look at the ad. Consumers would compare there current health conditions and the products they use to stay fit and would like to try Milkpak overcome those shortcomings they feel they have after using other products. At length, people use an individuals consumption behaviors to help them judge that persons social identity. In addition to considering a persons clothes and grooming habits, we make inferences about personaliy based on the products they use to feed themselves like food and beverages etc. In this ads case, people using Milkpak would depict their personality as of those who like to stay healthy and fit for themselves but use it for their entire family.

Self-Consciousness There are times when people seem to be badly aware of themselves. If youre using a product and people around you stare at you, you can understand this feeling of self-consciousness. It would alarm as if youre using a product that is not likely to go in line with the kind of personality you have. Similarly, this ad represents characters that have high self-esteem, are accurate with their decisions and are facially attractive, so if youre of this kind, you would want to use this product to attain the same level of self-concept. So in order for you to attain that level of self-concept and avoid the feeling of self-consciousness, you would choose Milkpak as a nutritional product to help keep your husband, children and yourself stay safe and healthy.\ Freudian Theory and its application Sigmund Freuds psychoanalytic theory of personality was built on the concept that unconscious needs or drives, especially sexual and other biological drives, are the heart of human motivation and personality for which the individual seeks immediate satisfaction without concern for the pecific means of satisfaction this is called ID. The superego (the second of the three interacting systems of human personality) is the individuals internal expression of societys moral and ethical codes of conduct. The super egos role is to see that a person satisfies needs in a socially acceptable manner. Ego, (the third one) functions as an internal monitor that attempts to balance the impulsive demands of the ID and the sociocultural constraints of the superego. It is the middle path for both ID and superego to execute actions. Evaluating the application of these three interacting systems of personality from the ad in question, it can be observed that Milkpak is a product that satisfies the need to have complete balance diet and is a biological need that cannot be skipped in any way. Now, in order to fulfill this need, the housewife and the mother of a child would follow the societal norms by feeding the child and the husband with daily dose of Milk in the morning and probably at night before going to bed. The milk would probably be supplemented with the breakfast, thus fulfilling the immediate gratification of hunger, and physical fitness in turn merging the ID and superego together in a socially acceptable way. Neo-Freudian Theory and its application

10

According to Neo-Freudian theory. Karen Horney, one of Freuds colleagues, focused on anxiety being a player in determining individuals personality and their interaction with others. She classified individuals in three personality groups mainly: 1. Compliant individuals who move toward others to be loved and appreciated 2. Aggressive - individuals who move against others to excel and win 3. Detached individuals who move away from others to attain isolation, self reliance and self sufficiency Milkpaks ad is all about bringing the entire family together with the bond of love and care. The individuals getting inspired with the print ad are going to be compliant individuals who like to care about others and get loved and appreciated. Milkpak focuses on accentuating that lovely relationship a mother has with her son and vice versa, a housewife has with her husband and vice versa and a sons relationship with his father. This ad implies the fact that Milkpak brings family members together as they care for each other and make sure everyone is healthy and fit. ABC Models
The ABC model emphasizes the interrelationships among knowing, feeling and doing. Knowing is the cognition which means the belief about a particular product and whether it is true or not. Affect describes how a consumer feels about an attitude object. Behavior refers to his intentions to take action about it. Now affect, behavior and cognition donot follow in just one hierarchy rather there are three different ways depending on the kind of product advertisement. Standard learning hierarchy

Cognition

Affect

Behavior

Attitude

Low Involvement Hierarchy

Cognition

Behavior

Affect

Attitude

11

Experiential Hierarchy

Affect

Behavior

Cognition

Attitude

For instance in case of Milkpaks advertisement that we are studying, since its a brand of Nestle, so brand image is pretty strong for the consumer to form cognition (belief about the name itself), Next, the consumer would form a feeling about the product through the emotional appeal that is created through the presentation of characters which represent stereotypical actors in ourselves i.e. a mother, housewife, a child, a husband and a father. These blended with the tagline Banaye Mazboot Gharana engage the customer to feel emotionally for the product. At the end, the consumer engages in a elevant behavior, such as when he/she buys the product that offers the attributes she feels good about. This is called the standard learning hierarchy.

The Fishbein Model The Fishbein model is the measure of belief, attitude and behavior. It involves: Beliefs The knowledge that a consumer has about objects, their attributes, and their benefits Objects Products, people, companies, and things about which people hold beliefs and attitudes Attributes Characteristics or features than an object might or might not have Benefits The positive outcomes that attributes might provide to the consumer In the scenario of Nestle Milkpak, there is a belief shown that BANAEY MUZBOOT GHIRANA. This statement is depicting that Milkpak is making and building strong households. The ad itself is showing that how the mother and a wife is taking care of her family. The object in the ad is portrait as Nestle Milkpak to which a belief is set. The attributes are the characteristics or features that are shown, and in the ad a message is there that are depicting the
12

features of using Nestle Milkpak that BANAEY MUZBOOT GHIRANA. The benefits of products will be in account when the consumer after watching ad buys product and compare the positive outcome of using the product. Source used and its implications on brand The particular Source through which the ad is delivered to the consumers is of high importance as well as the source credibility meaning how much we believe in the communicator and source attractiveness that how much social value the receivers attach with a communicator in turn having an impact on the consumers purchase of the product. In the ad, attractiveness and care is shown that a mother and wife is so much concerned about her son and husband about their health and well being. So every woman of the society can relate herself and perceive herself to be in that place in which the woman is shown as a mother and wife in the ad. Message construction format and type of appeal In the ad, message is constructed beautifully. A tag line is used that BANAEY MUZBOOT GHIRANA, furthermore, the concept of a family is shown which is creating emotional appeal. Message which is constructed is simple and specific and creates the appeal automatically. The emotional factor that is present in the ad is depicting emotions and care involved. A mother and wife is shown that she cares for her family and so she uses Nestle Milkpak. This is the message which they are conveying to the customers so that the customers try the product as well.

Elaboration Likelihood Model The elaboration likelihood model (ELM) of persuasion is a model of how attitudes are formed and changed. Central to this model is the "elaboration continuum", which ranges from low elaboration (low thought) to high elaboration (high thought). The ELM distinguishes between two routes to persuasion: the central route and the peripheral route. As a concluding factor, Nestle Milkpak being a high involvement product discussed earlier uses central route to persuasion in the Elaboration likelihood model of persuasion in its ad as

13

consumers, women in this case, will pay particular attention to a well conducted research before purchasing Nestle Milkpak as stated in the standard hierarchy of effects.

14