ACKNOWLEDGEMENT

My first and foremost humble and gratitude to ALLAH the almighty for giving me the valor to
remain dedicated to make this report.

Im grateful to my family members whose heartfelt prayers and appreciation have always been
an asset and a great source of inspiration of me. It could be complicated for me to accomplish to
task without their shadow of love.
I here with take the opportunity to express my profound sense of gratitude and reverence to all
those who have helped and encouraged me towards the successful completion of the project. Its
been a great experience working on NESTLE. It gives me complete insight about how a not only
survives in cut throat completion but also maintains a killer instinct in the competitive world.
I would like to thank my project guider Mr.xxxxxxxxx for his immense guidance a valuable help
and provided me the opportunity to complete the project under his guidance
I would like to thank all the faculty members of MUSLIM COLLEGE OF COMMERCE AND
MANAGEMENT for guiding me and support me in the completion of this project from time to
time
Last but not least my greatest gratitude to my friends, without their support this dream would
remain dream

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Executive Summary
Marketing is the process of planning and executing the conception, pricing, promotion and
distribution of ideas, goods and services to create exchanges that satisfy individual and
organizational goals. While strategy is the action plan to do something and hence,
Marketing Strategy is the managerial process of developing and maintaining a viable fit between
the organizations objectives, skills and resources and its changing market opportunities. The aim
of marketing strategy is to shape the companys business and products so that they yield targeted
profit growth.
Nestl Pakistan Limited is selected to study that how they have planned their marketing strategy
for Nestl Pure Life (water). Nestl is a multinational food company and offering Fast Moving
Consumer Goods (FMCG). The motto of Nestl is Good Food, Good Life, so delivering the
qualitative products to the customer is their main objective. It is offering 75 brands of bottled
waters worldwide. Nestl Pure Life (NPL) is one of them that were first offered in Pakistan by
Nestl Pakistan Limited in 1998. People felt need of Pure, safe and clean water because of
impurities in water especially in the industrialized cities like Karachi, Lahore, Faisalabad etc.
Nestl identified this opportunity and lunched NPL that satisfied the customer needs and Nestl
become market leader in the water industry.
The customers of NPL showed interest on NPL because of trust on Quality of Nestl, at the heart
of which there are qualitative products and its long term commitment to deliver better products
to consumers. Being the market leader, the market share of NPL is 78% that is much higher than
its competitors. NPL is passing through its Growth stage (of Product Life Cycle) i.e. its sales are
increasing tremendously and competitors are entering in the market like Aqua Fina by Pepsi and
Askari Waters.
There are different SKUs of NPL to cover a wide market needs like for Home and office
delivery there are 3gallon and 5 gallon bottles (bulk usage) and for day to day usage easily
carrying light weight like 1.5, 0.5, 0.2 liters bottles are available in the market. Still Nestl is
working on bringing the changes and innovation in this field. For this it has close relationship
with its suppliers and distributors to get their suggestion to improve the quality of NPL.

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Nestl Pakistan also has the Customer Service Department with the logo "Talk to Nestl" in
Lahore to receive the complaints and suggestions from the customers. In this way Nestl analyze
its market and becomes aware of the new market trends.
Marketing strategy include 4 Ps strategy i.e. Product, Price, Place and Promotion strategies.

Product is something that is offered to the market. NPL product strategy studies show that they
are positioning the product with respect to its attributes that NPL is safe, pure, refreshing and
healthy water. Nestl also does product line expansion; recently it has offered a 0.25 liter bottle
of NPL in the market. Its also using the company name with its product name i.e. Nestl Pure
Life. NPL round shape and elegance of the bottle are instantly recognizable. Quality is
cornerstone of NPL success. Nestle people say: Quality is our more successful product and it is
key to our success today and tomorrow.
In Price strategy, Nestle has adopted the strategy of non-price competition. It is offering one
price for NPL to all cities of Pakistan. It also keeps the check on distributors to maintain single
price of NPL. It offers trade discounts to its distributors.

Placement is the distribution of the product to its customers at right time, in right quantity, at
right price and at right place. To ensure this, channel adopted by the Nestl for distribution of
NPL is as follows:
Producer

Wholesaler

Retailer

Consumer

NPL comes under the category of FMCG, so for this the timely supply is very important thats
why Nestl is following intensive distribution strategy.

Promotion is the very important and crucial element of marketing strategy as through it the
company establishes its image in the minds of the customers. NPL is promoted by using different
ways of promotion. Advertisement of NPL is done through TV, radio, billboards, newspapers and
magazines. Current advertising slogans are that NPL is trust, hope and happiness and JIYO! Kay
yahi hay Zindagi. Nestl also conducts the tradeshows, concerts, events, sponsorships, and
discounts for sales promotion. For establishing public relations, Nestl distributes its newsletters,
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annual reports, calendars and diaries, lobbying, donation for charitable and civic events. For the
victims of 8th October 2005 earthquake, Nestl has donated 90 trucks, which were containing
different foods items, and NPL was one of them which is around Rs. 2 Billion. The Nestle
organized its teams to distribute products to the affected areas and all employees contributed
from top to bottom (MD himself was involved personally to distribute products physically)

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List of Acronyms

MD

Managing Director

NDC

National Distribution Center

NPL

Nestle Pure Life

SKU

Stock Keeping Units

UHT

Ultra High Temperature

A.O.A

Asia Oceania Africa

STP

Segment, Target and Position

FMCG

Fast Moving Consumer Goods

PTC

Product Technology Center

VMS

Vertical Marketing System

SCM

Supply Chain Management

SWOT

Strength, Weaknesses, Opportunity, Threats

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Table of Contents
Chapter-1
1.1
1.2
1.3

Chapter-2
2.1
2.2
2.3
2.4

Chapter-3
3.1
3.2
3.2.1
3.2.2
3.2.3
3.2.4
3.3
3.3.1
3.3.2
3.3.3
3.4
3.5

Chapter-4
4.1
4.2
4.2.1
4.2.2
4.2.3
4.2.4
4.2.5
4.2.6
4.2.7
4.3
4.3.1
4.3.2
4.3.3
4.3.4
4.4
4.4.1
4.4.2

Background of study
Purpose Of Study
Primary Data
Secondary Data

1
1
1
1

Introduction
Introduction
History (the Story Of Nestle From Nutrition to Wellness)
Organizational Structure
Table
Product Line

Market
Market
Analysis of market
Sales Department
Customer Services Department
Research And Development Department
Suppliers And Distributors
STP (Segment, Target and Position)
Market Segment
Target Market
Positioning
Major Competitors
Market Share
Graph

Marketing Strategies
Marketing Strategy
Product Strategy
Positioning the Product in relation to the Product
Product line Expansion
Product Life Cycle
Branding
Packaging, Design, Color
Labeling
Quality
Price
Non-Price Competition
Discounts and Allowances
One-Price Strategy
Real Price Maintenance
Place
Type of Distribution Channel
Vertical Marketing System (VMS)

2-11
2
3
7
7
9

12-19
12
12
12
12
13
14
14
14
14
15
18
19
19

20-34
20
21
21
21
22
23
24
25
25
26
27
28
28
28
28
29
29
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4.4.3
4.4.4
4.4.5
4.5
4.5.1
4.5.1.1
4.5.1.2
4.5.1.3
4.5.1.4
4.5.2

Supply Chain Management (SCM)

Consideration In Selecting the Channel
Intensity of Distribution
Promotion
Promotional Mix
Advertising
Sale Promotion
Public Relations
Publicity
Integrated marketing Communication

Chapter-5
5.1
5.2
5.3
5.4

Chapter-6
6.1
6.2

SWOT Analyses
Strength
Weaknesses
Opportunities
Threats

29
30
30
31
32
32
33
33
34
34

35-37
35
35
35
35

Finding and Recommendations

Finding and Recommendation
Bibliography

36
36
37

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