nestle pure life vs aqua fina | Nestlé | Competition

PROJECT OF MARKETING RESEARCH Submitted to:MR.

AHMAD UR RAHMAN Submitted by:ZAEEM HASSAN HUSSAIN AFZAL MUHAMMAD ZOHAIB ARSHAD IMRAN KHAN SHABIR MUHAMMAD SUFYAN MUHAMMAD ISHFAQ ALI AFZAL DAR WAQAR AZEEM AWAN 2008-ag-469 2008-ag-900 2008-ag-430 2008-ag-216 2008-ag-452 2008-ag-215 2008-ag-915 2008-ag-297

MBA 4TH
MARKETING

UNIVERSITY OF AGRICULTURE

FAISALABAD

AKNOWLEDGEMENT
All praises for almighty Allah. The creator. Whose uniqueness oneness is unchallengeable countless thanks to he the lords of lords who blessed us with the courage and power to complete this report and all respects and regards to Holy Prophet Hazrat Muhmmad (PBUH) for giving us the faith paving us on the right path with the essence of faith in ALLAH We feel great pleasure in expressing our profound and cordial gratitude to our respected teacher and taught supervisors Sir Jawad Saleem for his admirable cooperation guidance for us and sympathetic attitude which enable us in the formulation of and compilation of report. Our special thanks and favor for our esteemed friends for their ever lasting cooperation and giving us the homely atmosphere. Last but not the least we thank full to our parents and our family members for their cooperation guidance and inspiration throughout the course.

TOPIC & CONTENTS
AQUAFINA • • • • • • • • • • • • • • • • Executive summary History world water bottled market PAKISTAN water bottled market Economic survey SWOT ANALYSIS Target market Point of purchase COMPETITIVE ADVANTAGE Market growth Market analysis Marketing mix Product packaging Pricing policy Distribution Promotion

Executive Summary
The goal of this marketing plan is to outline the strategies, tactics, and programs that will make the sales goals outlined in the AQUAFINA business plan a reality in the year 2008. AQUAFINA is the answer to an increasing demand. Marketing will play a vital role in the success of AQUAFINA. AQUAFINA must build a brand around the services it offers by heavily promoting itself through local television, radio, and print advertising. Marketing efforts are just beginning by the time a potential customer enters AQUAFINA for the first time. A strong emphasis will be put on keeping customers and building brand loyalty through programs focused on staffing, experience, and customer

HISTORY OF AQUAFINA
Aquafina is a brand of bottled water. It was first distributed in Wichita, Kansas in 1994, and was distributed across the United States, Canada, Turkey Vietnam Pakistan and India. As of 2003, it had become the United States' top-selling bottled water brand in measured retail channels. Aquafina is sold in 12-fluid ounce, 500-milliliter (16.9 fl oz), 20-ounce, 24-ounce, 1liter, and 1.5-liter bottles. Aquafina uses PepsiCo's own purification system, which it calls HydRO-7, that includes charcoal filtration, reverse osmosis and Ozona ion. PepsiCo states in marketing material that this system removes substances that may be in other brands of bottled water. As of July 27, 2007, PepsiCo put a disclaimer stating the water comes from a "public source" on each bottle. Aquafina uses the term "Purified Drinking Water" on its label.

WORLD WATER BOTTLED MARKET
Annually consumption Estimated sales Consumption growth 189billion liter $ 200 billion 7 % per year

PAKISTANI BOTTLED WATER
People using bottled water Annually consumption Estimated sales Consumption growth 7 to 8 % 1.7 billion liter water RS 20 billion 1.7 % per year

ECONOMIC SURVEY
Pakistan’s biggest consumer markets include: CITES POPULATION Karachi Lahore Rawalpindi Faisalabad Multan Gujranwala Hyderabad Islamabad peshawar 15 million 9 million 3.0 million 2.6 million 1.6 million 1.3 million 1.3 million 1.3 million 1.0 million

Population and growth: population Growth rate

180 million 4.09%

Urban population Urban Population growth rate

56
million

2.10%

Size of middle class Middle class growth
Age structure: agePop Age category n 0-14 years 15-64 years 65 years and over
Population & %age

82
million

3%

64.5 million 39% 94.5 million 57% 7.0 million 4%

SWOT ANALYSIS OF AQUAFINA
• STRENGTH
• Parent brand is PEPSI • Price of bottle is 2nd biggest strength • Distribution channel is strong • Marketing staff who lead AQAUAFINA • highly preferable for health conscious people • its plant of filteration is awarded as worlds no.1 plant • best bottle manufacturing plant of the world • best relations with shop-keepers • party orders due to promotional packages like 1 pet free on purchase of 2 pet.but now a days 1 bottle with every pet

• WEAKNESSES
• • • • • • • Taste is not good Bottle swell up when it is kept in sun light Taste changes in 24 hours if it is not kept in 20-30 c temprature WEAK in TV commercial Behavior with their distributors No proper measuring of their activities & products after sales No feedback they get

• OPPORTUNITY
• Apply the experience

• GOOD MARKET GROWTH • Lack of pure drinking water over the country • New bulk of water is being introduced by AQUAFINA

• Threats

• • • • • •

Awareness among people about reality of sales strategy & water ingredients Increasing cost plant High expectation of the consumer is associated with PEPSI If not fulfill the expectation, might effect the reputation of PEPSI Big Leader Nestle already exists. Expiry date is not mention on bottles New logo of pepsi is also a threat because in old stock there is old logo is printed till now,which means that bottles are old

Target market
Earlier AQAUAFINA focus on people of age 14-40 But now there are successful in getting this target market This time AQAUFINA is focusing on CHILDERNS That is why most of the ads containing children as actors & characters

Point of Purchse
Point of purchasing of plastic is THAILAND & water from PUBLIC SOURCE

COMPETITIVE ADVANTAGE
• • • • PEPSI parent brand Competitors licenses are cancelled by HIGH COURT LOW PRICE STRONG DITRIBUTION NETWORK

• BOTH PULL & PUSH STRATEGIES • Attractive promotional activities as compare to their competitors like in start AQAUFINA offered 1 pet free with every 2 pet.that help out the AQAUAFINA to capture more & more market

MARKET GROWTH OF AQUAFINA
The growth of aquafina is increasing day by day. In 2004 it was only 11 % as diagram and in 2008 it has been reached at 22 % NOW IN 2010 AQAUFINA HAS MARKET SHARE OF 40 %

Market Analysis:
Major players in this industry are:  Nestle  Kinley  Sufi  First  Others

MARKETING MIX
PRODUCT:
VISION: To provide superior water to our consumer MISSION:

To provide the healthy water in order to facilitate people

Short term goals
To boost the sales Creating value for customer

Long term goals
Make the brand loyalty As PEPSI Has To give the awareness to use it

Product packaging Plastic bottles

500 ml 1500 ml

Labeling
 sticker containing ingredients  on the other side USP of the product is specified

USP

 

purity Taste of Aquafina is taste of Water.

Pricing Policy
On going rate price Almost the prices of all bottled water is same 500 ML 1500ML 15 28

DISTRIBUTION
PRIMARY DISTRIBUTION Producer TO distributor SECONDARY DISTRIBUTION Distributor TO retailer TO consumer *ALSO DISTRIBUTING TO DIRECTLY SHOPKEEPERS BECAUSE TO COVER MANY WEAK ARES LIKE VILLAGES etc

PROMOTION
 ADVERTISING STRATEGY  TV  RADIO  NEWSPAPER  MAGAZINE  BILLBOARD  BUSINESS TO BUSINESS PROMOTION (YELLOW PAGES) • Giving incentives to distributor & shopkeepers • Incentives for ASMs (bout 10 & hit 10 strategy) • Stands,t-shirts,chiller,etc for sales promotion & BRAND loyality

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• • • • • • • • • • • • •

Executive summary History SWOT ANALYSIS Target market Point of purchase COMPETITIVE ADVANTAGE Market growth Market analysis Marketing mix Product packaging Pricing policy Distribution Promotion

Executive Summary
This report,regarding Nestlé water. It starts with an introduction about Nestlé followed by the history of Nestlé. It gives a briefing about Nestlé. This report also includes the market mix of the product. All the 4P’s of marketing mix for the product has been discussed and explained to reveal the significance of its pricing, product, placing and promotional activities along with the strength and weaknesses of the organization.The report shows an internal architecture of the working of the Nestlé confectionary business. It gives a detail about the supporting department that has helped the business in their daily working. Also it discusses the objectives, policies of the organization along with their competitors at national level. There are also some suggestions/recommendations for the business.

HISTORY OF AQUAFINA
Henri Nestlé founded Nestlé in 1866 in Switzerland. Nestlé means ‘little nest’ in Swiss German. Nestlé first customer was a premature infant who could tolerate neither his mother’s milk nor any other conventional substitute. Thus, Henri’s ultimate goal was to help fight the problem of infant mortality due to malnutrition for which he developed a product

combining various cow’s milk, wheat flour and sugar and name it Farine Lactee Nestlé, which was the first product of Nestlé being marketed in Europe. In 1974, Jules Monnerat purchased Nestlé and collectively they launched a condensed milk product of its own. In 1905, Nestlé got merged with Anglo-Swiss condensed milk. After some time, when Nestlé got fully established and all its operation were properly functioning in Europe and was gaining fame around Europe, then Nestlé decided to set up production plants around the globe to ensure the growth of the organization and to become multinational. The decision to set up industrial operation in new market needs a lot of research, as there are various factors that effect the growth of the organization and turns out to be a loss for the company. Such factors are as follows  The availability of raw material  Cost factor  Economic climate  Consumer purchasing power  Consumer tastes The decision to become multinational turned fruitful for Nestlé and today Nestlé has its own operations and products in America, England, India, Brazil, Australia, Pakistan, Hungary, France, Belgium, Italy, Spain and various other countries around the globe.

SWOT ANALYSIS OF NESTLE
• STRENGTH
• LARGE MARKET SHARE • ALREADY EXISTING IN MARKET AS COMPARE TO COMPETITORS • IT IS KNOWN AS PURE WATER • BEST STAFF,SPECIAL R & D dept • Resources • Brand Image • Consumer Pull • category focused sales

• • • • • • •

WEAKNESSES Advertisement / Promotional Campaigns Weak distribution due to less VANS Less Number of Chillers High turn over of salesmen Low Trade Offer as compare to competitor Food Services accounts e.g. Restaurants, Bus stands, Railway stations • High price • Less party orders due to high price • OPPORTUNITY • Changing Lifestyle • Faisalabad City Developing on Fast Track

• • • •

Increasing literacy rate Sub Standard Quality of Drinking Water Very low per capita consumption of NPL Big Shop Universe

• Threats

• High Trade offers by Aquafina & Kinley • Rising Inflation Rate • Low prices of competitor • Awareness of customer is increasing

Target market
Target market is same as of AQAUFINA First target was to capture people of age 14-40 Now kids & children

Point of Purchse
Point of purchasing of plastic is THAILAND & water from PUBLIC SOURCE

COMPETITIVE ADVANTAGE
• Its purity is its competitive advantage • Its promotional activities regarding after sale is attractive Like if any bottle in pet is leaked but sealed,then it is replaced while no competitor do like this,which create more security for business customer • More care in filteration process as compare to AQUAFINA

MARKET GROWTH OF NESTLE

NESTLE IS LEADING THE MARKET WITH MARKET SHARE OF 52%

Market Analysis:
Major players in this industry are:  AQUAFINA  Kinley  Sufi  First  Others

MARKETING MIX
PRODUCT:
VISION: To provide PURE WATER to consumer MISSION: To add up minerals best for digestive system of human body

Short term goals
To boost the sales Creating value for customer

Long term goals
Keep the loyalty of customer with NESTLE

Product packaging Plastic bottles

500 ml 1500 ml

Labeling
 sticker containing ingredients  on the other side USP of the product is specified

USP
 

purity Taste of NESTLE water is much nice than AQAUAFINA

Pricing Policy
On going rate price Almost the prices of all bottled water is same 500 ML 1500ML 18 35

DISTRIBUTION
NESTLE has its own distribution network So They provide products to shopkeepers & end consumer itself

PROMOTION
 ADVERTISING STRATEGY  TV  RADIO  NEWSPAPER  MAGAZINE  BILLBOARD  BUSINESS TO BUSINESS PROMOTION (YELLOW PAGES) • Giving incentives to shopkeepers

• Incentives for ASMs • Stands,t-shirts,chiller,etc for sales promotion & BRAND loyality

Recommendations for AQAUFINA:• CONTROL PRICE • KEEP THE TASTE HIGH • GET FEEDBACK FROM BUSINESSCUSTOMERS & CONSUMERS AS WELL • DNT REMOVE NATURAL MINERALS • HAVE SPECIAL MEASUREMENT AFTER SALES LIKE CHECK TEMPRATURE OF GOWDAMS & DISTRIBUTOR PLACE OF STORAGE • INCREASE INCENTIVES OF DISTRIBUTORS,BECAUSE FOR LAST 5 YEARS INCENTIVES ARE SAME • REDUCE PRESSURE ON DISTRIBUTORS FOR MORE & MORE SALES,BECAUSE ITS LEAD TO FRAUD & CHEATING • MAKE PAKISTANI EMPLOYESS FAMILIER WITH FILTERATION PLANT SO THAT COST OF FOREIGNERS WILL DECREASE WHO ARE OPERATING PLANT • TRAINING PROGRAMME • IT IS A GREAT CHANCE TO COMPETE WITH ITS COMPETITOR BECAUSE IT IS 1-1 COMPETITION THIS TIME & GREAT OPPURTUNITY FOR AQUAFINA • GIVE MORE BOTTLES TO CUSTOMER ON SALE OF PET,BECAUSE IT IS RECORD THAT WHEN ITS HAVE PROMOTION THAT 1 PET IS FREE WITH PURCHASE OF 2 PET,ITS MAKE A GREAT BUSINESS & GET TARGET SALES,EVEN MANY AREAS GET 110% SALES AS THEY WERE TARGETED • INCREASE LIFE OF TASTE & BOTTLE • DO NOT CHEAT WITH CONSUMERS BECAUSE MAN POWER IS LARGEST POWER IN THE WORLD AFTER ALMIGHTY ALLAH

Recommendations for NESTLE:• KEEP THE TASTE NICE • INCREASE ADVERTISING & SHOW YOUR COMPETITIVE EDGE • INCREASE LOYALITY OF CUSTOMER WITH BRAND THROUGH ATTRACTIVE PACKAGES • KEEP THE PRICE LOW,BECAUSE THE DAY WHEN PRICE WILL COMPETITOR WILL BE VERY NEAR TO YOUR PRICE YOUR SALES WILL BE BOOST UP. • INCREASE ITS DITRIBUTION NETWORK • TRY TO GET MORE & MORE PARTY ORDERS • GIVE KEEN INTEREST TO CRM • INCREASE INCENTIVES & PROMOTIONAL ACTIVITIES • More focus on C & D Class Shops by revisiting Shop wise data. • Training of ASM’s by Regional Head as a Coach / Team Leader. • Training courses/workshops for team • Conduct Training Sessions of Salesmen at least once a month at Regional Level. • Hiring of Quality Sales people is in process in Faisalabad City. • Re-define roles & responsibilities of every Individual in order to bring ownership and sense of responsibility. • Weekly Meeting with Distributors and Sales Team in order to review weekly target closing

Recommendations for GENERAL PUBLIC:• BE QUALITY CONCIOUS • DO NOT COMPROMISE ON YOUR HEALTH • FIRST SEE THE BOTTLE FIND OUT EXPIRY DATE & THEN DRINK IT • YOU PAY FOR PRODUCT,ITS YOUR RIGHT TO GET PURE PRODUCT.IF YOU DO NOT GET PURE PRODUCT THEN YOU MUST NOT BE SILENT.DO JEHAD AGAINST WRONG 1,FRAUD & CHEATER • TAKE YOUR SPECIAL CARE & YOUR PARENTS AS WELL • BE UNITED • BE PETRIOT WITH PAKISTAN

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