Course Title: Principles of Marketing Submitted To: Madam Shehla Sohail
Institute of Management Science Lahore

Group Members

Raheel Khalid Uzma Tahir Abida Parveen Sehrish Qamar

081193 081181 081140 073122

Acknowledgement All thanks and praise for Almighty Allah who blessed us and enabled us for the completion of this research project. . Shehzad Qamar and distribution manager Mr. Muhammad Hussein from nestle sales department. We are also profoundly obliged to the valuable co-operation of Mr. We feel much pleasure in expressing our deep regard and gratitude for our course instructor madam Shehla sohail. Tariq Usman. And the brand manager of NPL Mr.

Today they are fully integrated in Pakistani life. .We are focusing on the marketing strategies of Nestle regarding Nestle pure water. nutritious and tasty food.EXECUTIVE SUMMARY In this research project we are going to study the marketing strategies of Nestle pure water. Nestle Pakistan ensure that t there products are made available to consumers wherever in the country they might be. Nestle came into Pakistan in 1988 when they first acquired a share in Milk pack Ltd. Nestle is old entrant in the pure water market and is facing a competition from other brands like Aquafina. and leaders in developing and uplifting the communities in which they operate. and are recognized as producers of safe. Kinlay. Sufi etc. Convenience is at the heart of the Nestle philosophy. and there aim is to bring products to people's doorsteps.

The Company's priority is to bring the best and most relevant products to people.Introduction Nestle with headquarters in Vevey. throughout their lives. . whatever their needs. wherever they are. Switzerland was founded in 1866 by Henri Nestle and is today the world's biggest food and beverage company Nestle's existing products grow through innovation and renovation while maintaining a balance in geographic activities and product lines.

. after Nestle's new formula saved the child's life. People quickly recognized the value of the new product. Farine Lactée Henri Nestle was being sold in much of Europe. a pharmacist. and soon.History   In the 1860s Henri Nestle. developed a food for babies.

Nestle divested a number of businesses1980 / 1984. Growth accelerated and companies were acquired . In 1984.The end of World War II was the beginning of a dynamic phase for Nestle. the most important being American food giant Carnation. . Nestle's improved bottom line allowed the Company to launch a new round of acquisitions.

The first half of the 1990s proved to be favorable for Nestle: trade barriers crumbled and world markets developed into more or less integrated trading areas. Since 1996 there have been acquisitions including San Pellegrino (1997). and in August.. Spillers Petfoods (1998) and Ralston Purina (2002). . Inc.6bn acquisition was announced of Chef America. In 2006. Jenny Craig and Uncle Toby's were added to the portfolio. Nestle merged its U. There were two major acquisitions in North America. both in 2002: in July. a USD 2.S. ice cream business into Dreyer's.

it sold its 72 brands of bottled water worldwide.Nestlé's Products BOTTELED WATER: Today. In 2006. The international brands of Nestle Waters are familiar on tables throughout the world . Nestle is a thriving business with headquarters in Paris.

and the boy survived.BABY FOOD: The production of infant food goes right back to the origins of the Nestle Company. In 1867 a physician persuaded Henri Nestle to give his product to an infant who was very ill he had been born prematurely and was refusing his mother's milk and all other types of nourishment. Henri Nestle's 'Farine Lactée' was the first product to bear the Nestle name. Nestle's new food worked. From the very beginning. .

Nespray. i.e.DAIRY PRODUCTS: Nestle has long been a major player in the dairy industry.. La Lechera and Carnation. dried milk powder brands such as Nido. We have been bringing life to milk since the very beginnings of our company. originally with well known shelf stable. .

. Cereal Partners Worldwide. and its rapid growth has been characterized by strong branding and lately the launching of breakfast cereal brands into the fast-growing cereal bar market. which is active in more than 80 countries.BREAKFAST CEREALS: Nestle has a joint venture with General Mills outside North America. The joint venture began in 1990.

. Nestle has progressed beyond these beginnings to become a world leader in key categories of Nutrition. when Henri Nestle first invented infant food to help save the life of a neighbour's child Today.NUTRITIONS Nutrition has been a central theme for Nestle ever since 1867. Health and Wellness to offer our consumers the food choices they need to achieve the healthy lifestyles they want.

Nestle scientists perfected a powdered coffee product that was introduced in 1938 under the brand name Nescafe the world's first commercially successful soluble coffee Nestle is a major producer of chocolate-based and malted drinks. Milo and Nescau are very popular with a growing number of young people around the world .BEVERAGES: In 1937. Nesquik. Its leading brands.

Maggi & Company was producing not only powdered soups. to create a vegetable food product that would be quick to prepare and easy to digest. sauces and flavorings. By the turn of the century. The results two instant pea soups and an instant bean soup helped launch one of the best known brands in the history of the food industry. but bouillon cubes. a miller with a reputation as an inventive and capable businessman. .PREPAID FOODS : The Society commissioned Julius Maggi.

Maggi merged with Nestle in 1947. became part of the Nestle Group in 1988. which has been producing pasta and sauces in Italy since 1827. . the authentic Italian brand. Buitoni.

creating Nestle Purina PetCare. and we consolidated our position in Europe with the acquisition of the Spillers brand in 1998. .PETCARE: Nestle entered the petcare business with the purchase of Carnation in 1985. and further with the acquisition of Ralston-Purina in 2001.

.

and leaders in developing and uplifting the communities in which we operate. first acquired a share in Milk pack Ltd. nutritious and tasty food. when our parent company. and are recognized as producers of safe. the Switzerland-based Nestle SA.Nestle in Pakistan Nestle has been serving Pakistani consumers since 1988. Today we are fully integrated in Pakistani life. .

Convenience is at the heart of the Nestle philosophy.We at Nestle Pakistan ensure that our products are made available to consumers wherever in the country they might be.one is at Sheikhu pura. one is Islamabad and two factories are in Karachi. . and our aim is to bring products to people's doorsteps. We have 4 factories in Pakistan .

Yet nutritional value and quality remain the most essential ingredients in all our brands.Marketing and Sales Nestle products are within reach for every single Pakistani. . All our key brands are equipped with the Nutritional Compass that ensures all the nutritional information about the product is accessible thanks to our user-friendly nutritional labeling and guidelines.

it's your satisfaction that really counts Our communications to the consumer are relevant. and adhere to the highest standards of responsible communication.Nestle Consumer Services is the main interface between you and the company. After all. cutting-edge. Our company is seen as the No. and we make every effort to ensure that your voice is heard. motivated and ambitious professionals . 1 career destination for talented.

PORTFOLIO ANALYSIS OF NESTLE (BCG MATRIX)

STAR
Juices, cereals

?
Noodles, Nescafe

Cash cow
Nestle pure water ,milk

Dog
POLO (local manufactured)

Our proactive innovation and renovation culture is the key to our success in the marketplace. Fully integrated systems (Nestle Pakistan, suppliers, customers) ensure efficient business processes.

NESTLE WATER
Every bottle of NESTLE Pure Life is produced with the Nestle Safety System and is carefully sealed with a proprietary seal. An optimal balance of essential minerals, enhancing the health and wellbeing of your family, matches purity of the highest standards.

0.5 liter bottles at retail outlets and Bulk bottles for Home & Office Delivery in 19 & 12 liter (12 liter is available at retail outlets #2biggest brand worldwide 21countries where Nestle PURE LIFE is distributed 400glasses of Nestle Pure Life were drunk every second around the world in 2005 .For your convenience NESTLE Pure Life is available in non-returnable 330ml.5 liter and 1.

while internal factors include the strength and weakness of product . External factors include the market threats and market opportunities.SWOT Analysis Marketing strategies are being made after the analysis of external and internal audit.

SWOT ANALYSIS Strength Weakness Opportunities Threat .

Strength   Nestle water is no. 1 selling water in Pakistan. as it is hygienic and good for health. Nestle is world famous brand name and people trust them   Mostly the people who buy Nestle water are health conscious so they use Nestle water. . The supplies network of Nestle pure water is the biggest in Pakistan.

Weakness: Price of the Nestle is not very economical and Income level of Pakistan is low and most of the people lies in lower middle class so they cannot afford Nestle pure water. Nestle is a very big company so their decision making process is up to mark. .

universities and even in homes people are using dispensers instead to water filters or using the tap water so that open the new opportunities for the pure drinking water .Opportunities: Now a day¶s people are more aware and they are getting health conscious day by day. banks. they know that tap water is not safe for their health Now a days the trend has been settled in most of the offices.

Threats: Many big competitors like coca cola and Pepsi are now in the market and they are investing heavily in Pakistan in into pure water industry so it is always difficult to compete with big competitors. .

Strategies on the basis of SWOT analysis Cost leadership strategy Product differentiation strategy .

.External and internal factors Internal factors Following are the internal factors affecting our policies Customer: nestle have the largest number of customer in Pakistan¶s water industry. this figure depicts that we have captured a largest number of consumer of pure water in Pakistan.. Nestle have market share of 65% of water industry in Pakistan.

Supplier: Nestle don¶t have such suppliers they have their own production of bottles and we use tap water as a raw material Distributors: We have three channels of distribution: Modern trade Traditional trade Horica (food services) .

Competitor: MAIN COMPITITORS AVA AQUAFINA KINLAY ASKARI NAEMAT GREEN LAND (PURE WATER ) .

WATER SURVEY As per Retail Audit .Year 2007 Bottled Water Selling Outlets in Franchise: 5372 %AGE OUTLETS Outlets with Nestle Availability: 4004 74.94% Outlets with Aquasafe Availability: 266 4.53% Outlets with Askari Availability: 480 8.95% Outlets with Others Brands Availability: 1976 36.78% .

If the income level of people is high then purchasing power will be high so they will purchase more Consumption behavior of Pakistani people is high so they consume more goods As Pakistan is Muslim country so we cannot add any ingredient which is prohibited in Islam or which is not ³Halal´.External factor Following are the external factors that affect our marketing strategies of nestle pure water. . More the education more will be the awareness about brand and quality food.

so nestle is focusing more on the posh areas. . As nestle water is the branded item so the people who are brand conscious will prefer to use nestle water .If the inflation rate is high then there will be decrease in purchasing power .so inflation indirectly affects the company¶s sale. Distribution of nestle water is easy in those cities where infrastructure is good enough.

from our information system we came to know about«. What are the competitors market making water? what price they are charging from customer? What type of packing is attracting the customer? What is purchasing power of people of a particular area? What is the budget of competitors on advertisements? Etc««.. .MARKET INFORMATION SYSTEM(MIS) Survival in market especially in the presence of large number of competitor is not an easy job. what is there competitor doing what strategies they are following that is the feedback of customer of our products and what customer wants.. One should always be well aware about the environment.

Our source of gathering information are: Research Team operating in the marketing After gather the required information we formulate our marketing strategies and plains. .

PRE MARKETING MIX In pre marketing we segment the market. after targeting we try to build the image on our target customers and increase the sale by differentiation. then target the market. .

SEGMENTATION Market is segments on different parameters such as. Age group . Size of a particulars market Income level Consumption pattern Growth of particular segment itself Geographic location.

Faisalabad etc. Nestle is also focusing on educated class because they know the values of health in life. .TARGETING Nestle is targeting mainly on those city in which density of population is high such as Lahore. Karachi.

Nestle is famous all over the world due to its quality product. . The positioning of Nestle pure water is very positive in the minds of consumers. So its image in the mind of people is very good.POSITIONING We position nestle water as a safe & healthy water for the entire family & for all consumption needs.

Their quality check is much better than others so there is no need to bother about the quality and the taste of water .5 litter and -1.DIFFERENTIATION Our service is very efficient as compared to others.5 litter bottles at retail outlets and Bulk bottles for Home & Office delivery in 19 & 12 liters (12 liter is available at retail outlets). Nestle is now supplying water door to door for their regular customers. Nestle water is available now in many packing they are more convenient as well a s economical. 0. For your convenience Nestle water is available in nonreturnable 330ml.

3. 2. Product Price Place Promotion . 4.MARKETING MIX 1.

Attributes Branding Packaging Labeling Product support .

PRODUCT Nestle Pure Water Our selected product of Nestle is Nestle pure water. Nestle water is consumer goods. As consumer goods include: 1. Shopping good 3. Specialty good . Convenience good 2.

Product features 3.PRODUCT ATTRIBUTES 1. Product quality 2. Product design .

It includes the product's overall durability. Product quality means the ability of a product to perform its functions. precision and other valued attributes. Nestle has chosen the quality level that matches target market needs and wants. Quality has two dimensions level and consistency. .PRODUCT QUALITY Quality is one of the marketer's major positioning tools. Nestle consistently delivers the desired level of quality to consumers. reliability. Beside quality level. Always strives for high level of quality consistency.

Convenient prices . Availability 3. Quality 2.PRODUCT FEATURES 1.

2% Easily available.MAJOR REASON FOR USING THE BOTTLED WATER Water of international standards. 0% Free of germs Clean Good for health Use while traveling Well reputed brand Easily available Doctor advised Water of international standards It tastes like sweet natural water Good for health. 6% Use while traveling. 49% It tastes like sweet natural water. 8% Free of germs. 1% Use for children. 1% Artificially purified water. 16% Artificially purified water . 2% Doctor advised. 1% Affordable. 5% Well reputed brand. 11% Affordable Use for children Clean.

4% Television. 2% Others. 3% Already know . 51% Relatives/Friends 5% Shop/Shopkeeper. 4% Poster. 2% Doctor. 0% Shop/Shopkeeper Relatives/Friends Poster Already know Board/ Hoarding Board Doctor Banner Ad on Bus N. 3% Board/ Hoarding Board. 2% Television DK.Brand Awareness Ad on Bus. 20% N. 2% Banner.Papers.papers DK Others .

Price should be that which gives us more revenue. Price must be keeping the view of your target market . Price should not be too low or too high than the price competitor is charging from their customers otherwise nobody will buy your product.PRICE Nestle water is not lie in necessities so its price should not be very high Price should be set according to the product demand of public. Price should be that by those customers are motivated to buy more.

INTERNAL FACTORS AFFECTING PRICING DECISION Market share leadership Product-quality leadership .

COST EXTERNAL FACTORS AFFECTING PRICING DECISIONS GENERAL PRICING APPROACHES Nestle set its pricing strategy based on two pricing approaches. Cost-based pricing 2. 1. Competition-based pricing .

PRODUCT MIX PRICING STRATEGY Product-line Pricing Discount and allowances pricing Functional discount Seasonal discount Promotional pricing .

PLACING DISTRIBUTION CHANNELS 1. Marketing through distributors . Direct marketing 2.

PROMOTION FACTORS IN SETTING THE PROMOTION MIX Consumer Product Push Strategy Purchase state .

PROMOTION MIX ADVERTISING MEDIA Television Newspapers Magazines .

$44 million would be injected in Sheikhupura factory. Company would invest to the tune of $209 million in five years period ending 2009.Future plans Nestle is planning to enhance its investments in Pakistan and by the year 2014. . The company has chalked out long-term investment plan. its total stakes would reach an aggregate of $374 million. Nestle is investing $70 million in milk production by increasing capacity of milk powder by 40.000 tones annually. $12 has been allocated for expanding milk collection. Nestle is setting up a most modern and latest milk plant with the cost of $ 70 million which will be operative within next couple of months. and $31 million in bottled water plants.

3 % of the consumers prefers Nestle over other brands of pure water that are available in the market . From our report it is concluded that nestle has a good reputation as a strong consumer brand.57.CONCLUSION The objective of this research was to study marketing strategies of nestle pure water. This is also proved by the statistical and graphical analysis of the data obtained from consumers that they are quite satisfied from nestle pure water. Nestle formulating a good strategy and they are trying to go for mass-marketing. 66% of the consumers use Nestle¶s products regularly.66% consumers bought Nestle water because of its brand image which is of good quality products. . 60% of the consumer¶s associate quality with Nestle.

Though 57. Aquafina beat nestle in almost every country except Pakistan . .SUGGESTIONS Nestle¶s pure water need to expand their customer equity. Nestle should improve its promotional activities on television regarding nestle pure water.3% people prefer Nestle over other brands 43% prefer others.So nestle should defense their position. Nestle should benchmark with other brands to compete in this industry. Nestle¶s pure water are expensive so they should decrease their prices as big competitors like Aquafina enter into this industry.

24% weekly and 14. Nestle should try to increase this usage rate through new users by advertising.58% consumers use this product occasionally. more usage by convincing people about the high quality of the juices. . From this they can differentiae their product from others and they can get more market shares.7% daily. Flavored water should be introduces in Pakistani market.

Sign up to vote on this title
UsefulNot useful