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Nestle Juices Project

Nestle Juices Project

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Published by Umar
Brand Audit of Nestle Juices that are now Nestle Fruita Vitals
Brand Audit of Nestle Juices that are now Nestle Fruita Vitals

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Published by: Umar on Feb 13, 2010
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08/11/2014

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Currently in Pakistan, there are 24 fruit juice/pulp processing units and a number of
small units in the informal sector are working. The present installed capacity is
estimated around 400,000 metric tons per annum with a demand for juices growing
at a combined annual growth rate of 27%. The fruit juice industry reported sales of
8.526 billion Rupees in year 2008.

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50

100

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2001 2002 2003 2004 2005 2006 2007 2008

Eas

Column 2

Column 3

y The outlook for the canned food industry - which can exploit rising demand

for convenience and consumer fears over food origin and hygiene - and the

soft drinks and beverages industry - which can capitalize on the asp rational

Brand Audit 23 Nestle juices

demands of Pakistan's young population - have both been moderately

accelerated. Forecast canned food sales growth to 2012 now stands at 46.7%,

while soft drinks sales growth to 2012 is forecast to stand at 36.4%. Both

have contributed to a per capita food consumption growth forecast

amendment to 15.4%. It is also expected that the average consumption of the

single person will be 85.5 hundred litters per years in 2012.

y 2500,000 liters juices approx drink by Pakistani people in a month. And per

day there is 83330 liters approx juices drink by people.

y The market of juices is growing because the consumption of juices

increases every year and expected it increase continually due people change

the life style and more health conscious. They prefer juices on other soft

drink.

y The market share of the nestle juices is 60%. Which mean 1500,000 litters

in a month and 50,000 litters in a day.

y Nestle is name of pure life so quality is their guarantee. So if they lose their

quality then they lose their sale because these don¶t operate on the given

image. And increase in rates of raw materials also influence the level of

demand because due to increase in cost the sale price also increase and due to

price war in a market of Pakistan demand level is effected. Or increase in tax

there will be increased cost price which also effect in decreased in demand.

Increase in inflation rate in Pakistan then this also effect in decrease in

demand level.

y The nestle juices are at growing stage of product life cycle.

Brand Audit 24 Nestle juices

Competitor¶s analysis

Competitor analysis in marketing and strategically management is an assessment of

the strengths and weaknesses of current and potential competitors. This analysis

provides both an offensive and defensive strategic context through which to identify

opportunities and threats. Competitor profiling coalesces all of the relevant sources

of competitor analysis into one framework in the support of efficient and effective

strategy formulation, implementation, monitoring and adjustment

In order to evaluate the competitive position we have to take a look on the

competitors of ³Nestle juices´ in JUICE CATEGORY.

Competitors in market

y Shezan

y Haleeb

y Malee

y Country

y Fraz

Shezan is the main competitor of ³Nestle juices´ nestle juices compete their

customer on quality basis because In Pakistan their in no big name in pure fruit

juices. nestle provide their customer pure fruit juices.

Brand Audit 25 Nestle juices

Shezan

Short introduction of Shezan

The Shezan International Limited was incorporated on May 30, 1964 as a Private

Limited Company. Shezan International Limited was conceived as a joint venture by

the Shahnawaz Group, Pakistan and Alliance Industrial Development Corporation,

U.S.A. in 1964. Shezan is the largest food processing unit having developed and

installed the capacity to meet the country's local as well as export needs. In 1971,

Shahnawaz group purchased all the shares of Alliance Industrial Development

Corporation with the permission of the Government of Pakistan. In 1980-81 a

separate unit was installed in Karachi which now caters for Karachi, Sind and export

demand. A bottle filling plant was set in 1983 in Lahore, Punjab. An independent

Tetra Brik plant was commissioned in 1987.In the year 1990 it was decided to install

a juice factory at the Hattar in North West Frontier Province of Pakistan. Shezan

International's Head Office Located in Lahore, Pakistan. In Canada, Target Foods, is

the authorized distributor for all Shezan Products. They carry all the export quility

Juices, James, Pickles, Chutneys, Sauces, Syrups and Squashes.

The products of the Company include tetra pack juice, mango juice, pickles,

custards, vegetables, jellies and jams. The Company distributes the products under

the Shezan brand name.

y Strong local name in the juice and drinks range

± Launched Shezan Orange

± Launched Twist (nectars) 2003

‡ Aggressive marketing campaign print, electronic

± Shezan All Pure 2004

± No trial generation activities

‡ No consumer reward/loyalty CPs

‡ Available packaging options

± Shezan All Pure

1 Ltr

± Nectars

‡ Twist

Brand Audit 26 Nestle juices

‡ Shezan nectars

1 Ltr

Swot analysis of shezan juices

Strengths:

1. Shezan has it own fruit forms.

2. Shezan juices operate in market earlier than nestle juices.

3. Better knowing the culture of country.

4. Shezan juices have best distribution channel in all over the Pakistan.

5. Offer good quality products especially nectars juices in market.

6. Shezan juices have good positioning in customer mind.

Weakness

1. Less product awareness in customer mind.

2. Rising manufacture cost

3. Inadequate human resource

Opportunities

1. Shezan juices have great perception value in minds of customers while as Pakistan

organization.

2. Increase juices market very fast.

3. The concentric diversification in different juices products.

4. Backward integration can use in juice products of Company.

5. Decreasing economy condition.

Threats

1. There is strong competition in juices market.

Brand Audit 27 Nestle juices

2. Different strategies adopted by competitors Nestle in juices products

3. New product advancement by different competitors.

4. Increase inflation rate (23.3% 2008)

5. Rising labors coast.

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