CONTENTS

CONTENTS......................................................................................................................1 EXECUTIVE SUMMARY....................................................................................................3 HISTORY.........................................................................................................................4 MISSION STATEMENT.....................................................................................................5 NESTLE BUSINESS OBJECTIVES......................................................................................6 NESTLE PRODUCTS........................................................................................................6 CUSTOMER ORIENTATION............................................................................................10 MARKETING ENVIRONMENT..........................................................................................10 ..................................................................................................................................10 NESTLS MICROENVIRONMENT................................................................................10 NESTLS MACRO ENVIRONMENT..............................................................................11 MARKETING OFFERING.................................................................................................12 EFFECT OF EXTERNAL ENVIRONMENT ON NESTLE DELICIOUS JAM..............................12 MARKETING RESEARCH AND MARKETING INFORMATION.............................................12 MARKETING STRATEGY.................................................................................................16 MARKET SEGMENTATION..............................................................................................16 GEOGRAPHICAL SEGMENTATION..............................................................................16 DEMOGRAPHICAL SEGMENTATION............................................................................16 TARGET MARGET..........................................................................................................16 VALUE PROPOSITION....................................................................................................16 CONSUMER BEHAVIOUR............................................................................................17 CUSTOMER RELATIONSHIP MANAGEMENT...................................................................17 STRATEGY FOR CAPTURING VALUES............................................................................17 PRICE........................................................................................................................20 PRICING OBJECTIVES.................................................................................................21 FACTORS AFFECTING THE PRICE OF NESTLE JAMS....................................................21 PLACE........................................................................................................................21 RETAILING....................................................................................................................21 RETAILERS CLASSIFIED BY MARKETING STRATEGIES................................................21 CHANNEL OF DISTRIBUTION.........................................................................................22 PROMOTION..............................................................................................................22 STRATEGIC PLANNING..................................................................................................23 SWOT ANALYSIS OF NESTLE JAM..................................................................................25 STRENGTHS..............................................................................................................25 1

WEAKNESS.......................................................................................25 OPPORTUNTIES................................................................................25 THREATS...................................................................................................................26 RETURN ON INVESTMENT (ROI)....................................................................................26 MARKET IMPLEMENTATION...........................................................................................26 During the manufacturing of the product we would go for its advertising. We would distribute broachers to create awareness. Then we would hire some sign board in different major cities of Pakistan. And at the same time we would go for TV and radio commercials. In all this process our main focus would be on TV commercials and sign boards because now a day these are the most popular things among the consumers. .....................................................................................................................................26 CONCLUSION................................................................................................................26 REFERENCES................................................................................................................27

EXECUTIVE SUMMARY
Our marketing project is about launching a new product which is Nestle Delicious Jam, bring happiness in life. Nestle is not producing jam currently. So we will introduce this product 1st time in market. The marketing plan for this purpose consists of many strategies that we will use. We will compete the market because our product will offer a unique combination of features e.g. different flavors, bottle design, nutrients etc at a value added price. Its target market will include all people but specially the children. It will be available in all possible flavors and reasonable price will be offer for Nestle Delicious Jam. The product life cycle will start from the maturity stage by providing more values in beginning. We will use corporate vertical marketing system for Nestle Delicious Jam.

HISTORY
1866-1905
In the 1860s Henri Nestl, a pharmacist developed a food for babies who were unable to breastfeed. His first success was a premature infant who could not tolerate his mother's milk or any of the usual substitutes. People quickly recognized the value of the new product, after Nestl's new formula saved the child's life, and soon, Farine Lacte Henri Nestl was being sold in much of Europe.

1905-1918
In 1905 Nestl merged with the Anglo-Swiss Condensed Milk Company. By the early 1900s, the company was operating factories in the United States, Britain, Germany and Spain. World War I created new demand for dairy products in the form of government contracts. By the end of the war, Nestl's production had more than doubled.

1918-1938
After the war Government contracts dried up and consumers switched back to fresh milk. However, Nestl's management responded quickly, streamlining operations and reducing debt. The 1920s saw Nestl's first expansion into new products, with chocolate the Company's second most important activity.

1938-1944
Nestl felt the effects of World War II immediately. Profits dropped from $20 million in 1938 to $6 million in 1939. Factories were established in developing countries, particularly Latin America. Ironically, the war helped with the introduction of the Company's newest product, Nescaf, which was a staple drink of the US military. Nestl's production and sales rose in the wartime economy.

1944-1975
The end of World War II was the beginning of a dynamic phase for Nestl. Growth accelerated and companies were acquired. In 1947 came the merger with Maggi seasonings and soups. Crosse & Blackwell followed in 1960, as did Findus (1963), Libby's (1971) and Stouffer's (1973). Diversification came with a shareholding in L'Oral in 1974.

1975-1981
Nestl's growth in the developing world partially offset a slowdown in the Company's traditional markets. Nestl made its second venture outside the food industry by acquiring Alcon Laboratories Inc.

1981-1995
Nestl divested a number of businesses1980 / 1984. In 1984, Nestl's improved bottom line allowed the Company to launch a new round of acquisitions, the most important being American food giant Carnation.

1996-2002
The first half of the 1990s proved to be favorable for Nestl: trade barriers crumbled and world markets developed into more or less integrated trading areas. Since 1996, there have been acquisitions including San Pellegrino (1997), Spillers Petfoods (1998) and Ralston Purina (2002). There were two major acquisitions in North America, both in 2002: in July, Nestl merged its U.S. ice cream business into Dreyer's, and in August, a USD 2.6bn acquisition was announced of Chef America, Inc.

2003 +
The year 2003 started well with the acquisition of Mvenpick Ice Cream, enhancing Nestl's position as one of the world market leaders in this product category. In 2006, Jenny Craig and Uncle Toby's were added to the Nestl portfolio and 2007 saw Novartis Medical Nutrition, Gerber and Henniez join the Company

MISSION STATEMENT
Nestle is dedicated to providing the best foods to people throughout their day, throughout their lives, throughout the world. With our unique experience of anticipating consumers' needs and creating solutions, Nestle contributes to your wellbeing and enhances your quality of life. Nestle is not only Switzerland's largest industrial company, but it is also the World's Largest Food Company. The mission statement emphasizes on the fact that Nestle products are available in nearly every country around the world. Wherever one may live, only Nestle can provide the best and most reliable food and beverage products to meet his/her needs throughout the day, throughout the life. Especially, people on the move want to be able to find good food wherever they are, whatever the time of day. They are often reassured that they will find well-known brands out of home. This statement also reflects the image of high quality products that Nestle offers. Nestle has the advantage that it offers caterers, fast food chains and other restaurants a complete range of high quality ingredients, base products and meal components, as well as leading consumer brands such as Nescafe. Quality is the cornerstone of the success of the Nestle Company. Everyday, millions of people all over the world show their trust in the

company by choosing Nestle products. This trust comes from a quality image that has been built up for over a century. Therefore, the quality of the products ultimately enhances the quality of the consumers life. In addition, the mission statement declares that Nestle has the ability to anticipate consumers needs and create solutions. Nestle has proven this ability a number of times by introducing new products that were required by consumers.

NESTLE BUSINESS OBJECTIVES

Nestl's business objective is to manufacture and market the Company's products in such a way as to create value that can be sustained over the long term for shareholders, employees, consumers, and business partners. Nestl does not favor short-term profit at the expense of successful longterm business development. Nestl recognizes that its consumers have a sincere and legitimate interest in the behavior, beliefs and actions of the Company behind brands in which they place their trust and that without its consumers the Company would not exist. So the needs & wants of consumers should be considered. Nestl believes that, as a general rule, legislation is the most effective safeguard of responsible conduct, although in certain areas, additional guidance to staff in the form of voluntary business principles is beneficial in order to ensure that the highest standards are met throughout the organization. Nestl is conscious of the fact that the success of a corporation is a reflection of the professionalism, conduct and the responsible attitude of its management and employees. Therefore recruitment of the right people and ongoing training and development are crucial. Nestl continues to maintain its commitment to follow and respect all applicable local laws in each of its markets.

NESTLE PRODUCTS
Nestle is a well-known company all over the world and Pakistan. The company basically deals in food products as their logo says Good Food, Good Life. Their major products lines are:

MILK PRODUCTS
1) NESTLE MILKPAK UHT MILK
This product was launched in 1981. Backed by a very strong brand name, aggressive marketing and distribution plan, consistent quality, and availability throughout the year, it has become quality milk. In September 1999, Milk Pak UHT milk was launched as Nestle Milk Pak UHT milk. It is available in 1000, 500 and 250 ml sizes.

2) MILKPAK BUTTER
This product was launched in 1985 under the Milk Pak brand name. It has been recently repackaged in a crisp white laminate, the design of which bears closed resemblance to that of Milkpak UHT milk. This new package design allows gaining strength from Nestle Milkpak UHT milk. It is available in 200 and 100 gm sizes.

3) MILKPAK UHT CREAM

This product was launched in 1986 under Milkpak brand name. It is available in 200 ml size.

4) MILKPAK DESI GHEE

This product was launched in 1986. It is available in 1000 ml size and is leading branded desi ghee in the country.

5) NESTLE EVERYDAY
To meet the requirements of the tea-whitening segment, this product was launched in 1992. On account of aggressive marketing, focused distribution, excellent consumer acceptance and product quality, this brand has shown strong growth and holds good promise for the future.

6) NESTLE NIDO
Soon after it was introduced in the early 70`s as an imported product, Nido full cream milk powder became the market leader. Local manufacturing of Nido began in 1990, which has reinforced its position as the dominant player in the full cream milk powder category.

CHOCOLATE DRINKS
1) MILOPOWDER
This product was launched in 1994. It is available in 14,100 and 200 gm sizes. It is strongly associated with a healthy life style and is an ideal drink for growing children who need strength and energy.

2) MILO RTD
To cater for consumer convenience, Milo RTD (ready to drink) was launched in 1995 and is now available in an attractive 180 ml slim pack. It is popular among all age groups especially among the growing segment of nutrition conscious consumers. It is an excellent substitute for cold drinks.

COFFEE
1) NESCAFE CLASSIC
It is one of the worlds most popular coffee brands. Nescafe global campaign open up was launched in Pakistan in October, introducing a new brand framework and increased emphasis behind coffee sales in Pakistan. Nestle Milkpak locally packs imported coffee and markets it in 225 and 500gm.

FRUIT DRINKS
1) FROST
It is a well-known brand launched in 1986 and has the largest market share. Positioned as a cold drink and an alternate to cola drinks, its strength lies in the convenience attached to its usage.

2) NESTLE ORANGE JUICE

The product was launched in July 1996. It is available in 180ml and1litre sizes. In a market that is becoming increasingly conscious about nutrition and is displaying preference for healthy drinks, Nestle Orange Juice has made very good inroads and has a strong potential in the future.

DIETETIC & INFANT PRODUCTS

1) LACTOGEN
Lactogen 1 and Lactogen 2 are infant and follow-up formulae launched in 1991 and are available in two sizes both pack and can. The brands provide both affordability and quality.

2) CEREALS
Launched in 1989, it is the dominant player in the growing infant food market. It is available in 5 flavors and provides balanced nutrition to infants.

3) NESTLE RICE
An affordable starter weaning cereal and offers the flexibility of preparation with a variety of meals. This was launched in 1994 and available in125ml pack size.

4) NESTLE WHEAT
8

Nestle wheat is a wheat-based infant cereal without milk. It is available in 125 and 200 gm pack sizes.

5) NESLAC
Neslac is a growing up milk, formulated specially for 1 to 4 years old. This was launched in 1994. It contains a right balance of proteins, calcium, iron, vitamins and essential minerals in order to cater nutritional needs of growing children.

CULINARY PRODUCTS
1) MAGGI 2-MINUTE NOODLES
Fast to cook, good to eat Maggi 2-Minutes Noodles were launched with local production in 1992, and doing so Nestle pioneered the category of instant noodles in Pakistan. It offers flavors like chicken masala, chili and chatkhara.

2) MAGGI COLD SAUCES

Nestle entered the Cold Sauces category early in the year with the launch of Maggi ketchup, Maggi mirch maza and Maggi khatti meethi the first Emily sauces in Pakistan. The innovative taste of Khatti meethi together with the more traditional tastes of Ketchup and Mirch maza, were received well by the consumers.

CONFECTIONERY
In view of the impressive potential for confectionery sales in the country, Nestle Milkpak established an independent sales and distribution network for confectionery products. From three main cities in 1996, it has grown into a nation-wide network. The initial product range includes locally produced Polo Mint, Kitkat, Smarties, Lion Bar, and Foxs, Allens Toffo and Allens Soothers. Both Toffo and Soothers are produced on a new confectionery line-based on a new state-of-the-art technology that provides an extremely flexible process for production of wide range of high and low boiled candies. This will enable the company to introduce varieties of new sweet flavors over the next few years.

WATER
The launch of Nestle Pure Life in December 1998 was a truly historic event. This marks the Nestle Pure Lifes entry into the countrys fast growing water market. At the same time Pakistan became the first country where Nestle launched the new brand. Nestle Pure Life is a premium drinking
9

water, produced to the highest standards of safety and purity. It is ideally balanced with essential minerals. It is available in two convenient sizes of 0.5 and 1.0 liters. Capitalizing on its strong brand recognition, aggressive pricing and supported by a strong marketing campaign, Nestle Pure Life has made very strong inroads into the water market in Pakistan. Nestl PURE LIFE is available around the globe today in Canada, USA, Mexico, Brazil, Argentina, South Africa, Saudi Arabia, Jordan, Egypt, Lebanon, Turkey, Russia, Uzbekistan, Pakistan, China, Thailand, and the Philippines. Launched on the North American market in 2003, Nestl PURE LIFE is destined to become the worlds leading and most widely distributed brand by 2010.

CUSTOMER ORIENTATION
Nestl is the customer oriented company from its foundation to till now. In 1866 it introduced the food for babies who were unable to breastfeed, and this formula saved the lives of many children. Due to the customers realization over the company, Nestl's production and sales rose in the wartime economy. The quality of the products ultimately enhances the quality of the consumers life. In addition, Nestl has the ability to anticipate consumers needs and create solutions. Nestl has proven this ability a number of times by introducing new products that were required by consumers. Nestl is one of the few companies to have an information system that commits the company to respond to information requested.

MARKETING ENVIRONMENT

NESTLS MICROENVIRONMENT
1)

SUPPLIERS
10

 Nestl is a corporate member of the National Minority Supplier Development Council. It has established the relationship with many suppliers. They dont have any specific suppliers. Moreover it includes different and a large number of suppliers for obtaining raw materials.

CUSTOMERS
Consumer markets are important for all organizations by marketing perspective but for Nestle it is too important because It is related to food and beverage industry. Worldwide consumer markets Consumed in the 85 countries of the world Not only large but also dynamic Completely focusing on changing behavior Fictitious product will also have a consumer market
2)

COMPETITORS

Every company tries to provide greater value and satisfaction than its competitor do. Following are the main competitors of the Nestle Company Mitchells Shezan Rafhan National etc Threats of competition come from external environment. To improve its Competitive position Nestle has made joint ventures with its competitors.

NESTLS MACRO ENVIRONMENT

a)

SOCIAL & CULTURAL FORCES

Nestle uses recognized safe raw materials and processes them with

minimal energy input. An eco-friendly device is the use of perforations around labels to make them easy to remove. For advertising and sales promotions, it tries to reduce waste in the POP advertising materials. The raw material that nestle use in their products is according to our society and Islamic culture.

TECHNOLOGICAL ENVIRONMENT
Currently nestle is using high technology and machinery which is one of the key to success for the Nestle. It gives them the competitive advantage. Nestle uses better technology and machinery, it gives the customers the healthy and clean environment so the consumers buy their products more and they gain profit. With technological environment there is no wastage of time

11

ECONOMIC ENVIRONMENT
Currently Nestle is at prosperity stage of Business Cycle. The major economic factor which can affect the sale of Nestle products in Pakistan is inflation.

POLITICAL & LEGAL FORCES

Nestle supports appropriate voluntary initiatives designed to protect the environment. Nestle promotes balanced environmental laws and regulations & opposes unjustified prohibitions and other discriminatory measures.

b)

DEMOGRAPHIC ENVIRONMENT
Nestle products are for everyone and for all group of people. These products are usable by all categories of people, having different

ages but especially children

MARKETING OFFERING
We are making a marketing plan of Nestle Delicious Jam. The launch of Nestle Delicious JAM in Pakistan will provide the customer with the best jam full of nutrients. In Pakistan, the launching of delicious and appetizing JAM with the brand name of Nestle will generate huge revenue.

EFFECT OF EXTERNAL ENVIRONMENT ON NESTLE DELICIOUS JAM

In short, factors of macro environment affect microenvironment. The major problem that may affect can be economic environment that includes inflation in Pakistan which is increasing day by day. Due to this, there is rise in price level. It can have an impact on the customers purchasing decision. The other problems may be poverty, unemployment, deficit, economic instabilities. Government has their specific rules and regulations. E.g. every product has retail price+ tax. When the new govt. changes its tax policy, the company also changes their rules.

MARKETING RESEARCH AND MARKETING INFORMATION

At Nestl, we believe that research can help us make better food so that people live a better life. The role of the Nestl Research Center, is to help fulfill Nestl's vision of making good food central to enjoying a good healthy life for consumers everywhere. Different marketing programs are initiated and planned for every product of Nestle. With the Blend of primary data and secondary data Nestle formulates strategies for every product, and also for
12

every country of the world. Nestle use three basic methods for obtaining the primary data. Observation Experiment Survey

OBSERVATION
Nestle observes the attitudes, lifestyles and behaviors of the people residing in every different country of the world. Nestle also observes the major changes in the socioculture environment and hit the target through Nestle products which are needed to be present in the market.

EXPERIMENT
As Nestle spends huge amount of money on research in Lab experiments in order to produce and provide better taste products in the market. Nestle do the experiments in order to clearly determine the better tastes and other ingredients and nutritions of its products. And emphasis on the Lab experiments Nestle keeps on investing in Research and more than 3000 people around the world work to improve, find, and discover food that is better for all of consumers so that consumers can live a better life. Nestle always keeps an eye on its competitors and basically greatly rely on competitive intelligence

SURVEY
Nestle also conduct surveys for better understanding of the consumer behavior, and stay up to mark according to the desires of the consumers which help in better planning and implementation of marketing mix as per required by the domestic and international market. So here for our new fictitious product we used this method for obtaining the primary data. In this way we came to know about the point of view and acceptance related to our product in the minds of people. The Survey result is as follow

13

SURVEY RESULTS

14

1-If nestle launches jam would you like to eat it? a) Yes b) No c) not decided 2-Nestle would like to give you a jam in curved bottle to let you hold it easily; would you like that? a) Yes b) No c) Not decided 3-Nestle is going to provide you a jam with some new flavors select those you like. a) Apple mango b) Mango orange c) Strawberry apple d) Strawberry mango e) Apple orange 4-Why do you like nestle products? a) Because they are pure b) Because they are easily available c) Because they are best in taste d) Because of low price

83.26% 14.3% 2.44%

84.87% 15.13

9.09% 52.91% 11.2% 22.6% 4.2% 37.9% 43.6% 14.3% 4.2%

15

MARKETING STRATEGY
Nestle uses the societal marketing concept. Nestl designed and launched the products according to the society. It meets the responsibilities of the society. In the Muslim countries it makes sure to write Hilal at the packaging of the products. In the African countries Nestle build its water purification for free to provide clean and purify water to the poor nations.

To occupy a clear distinctive & desirable place related to competing delicious jam in the minds of the target customers Nestle Jam will segment its market only on geographic basis.

MARKET SEGMENTATION

GEOGRAPHICAL SEGMENTATION
The Company will segment its market geographically on divisional basis. They will divide each division in different zones and every distributor will be restricted to sale its products only in his own zone. E.g. Lahore will be divided into five zones like East, West, South, North, and South west. Nestle Marketing strategies will focus on urban areas because more of the revenue comes from that areas.

DEMOGRAPHICAL SEGMENTATION
There will be no demographic segmentation for Nestle Delicious Jam. If we look Nestle Jam demographic segmentation, then we will find that our product will be for everyone. People from any area, any culture, any age, any sex, any belief and any income will purchase our Nestle Jam. It is not any luxury item which will be used by a specific people.

TARGET MARGET
The target market will be up to 60 years of age and the core target will be between 10-30 years of age. A specific demographic target market will not be chosen for Nestle Jam; instead the goal is to develop a product to be used by consumers of all ages - from babies to seniors. It will be intended as a family product especially for families who work and have a short time for making meal or breakfast.

VALUE PROPOSITION
Nestle will use some competitive advantages or important attributes which will help in occupying a good position in consumer's mind relative to competing jams. These competitive advantages are as follow
16

1)

CUSTOMER ORIENTED

Customer satisfaction is the focal point for the company. They will provide the hygienic products to their customers. Products will be verified by health and safety measures and international quality standards. Its will provide different flavor to the customers and different offers which will the Nestle jam a competitive advantage.

2)

NESTLE LOGO & FAMILY BRAND

Jam will use Nestle brand name and the logo of Nestle Delicious Jam which will show family care to consumer which is enough to attract the customer. That's why customer will give it preference on other products.

3)

COMMUNICABLE

Nestle Delicious Jam will be a brand of Nestle which will show a big sign of quality to customers. Due to its brand and name it will be very easy to communicate.

CONSUMER BEHAVIOUR
Consumer behavior towards the Nestle Jam could be in terms of the choice among the flavors. Some customers would choose the one fruit flavor, while some customers would like the flavor of two fruits. Consumers could be loyal towards their favorite flavors and could have preference of one flavor of jam on the other flavor. Consumers would buy the Nestle Jam keeping in mind the quality and cost of the jam relative to those of competing products. The consumer behavior will be more satisfactory towards the jam if the taste and quality of the jam matches the consumers expectations.

CUSTOMER RELATIONSHIP MANAGEMENT

Nestle jams will build profitable customer relationship by providing them best taste best health at very best price. We are going to produce a jam with number of important vitamins, iron, nutrition and lot and lots of health and taste. We are going to give best flavors which no one provides. We use good food colors so in short we give them value and satisfactions to build a profitable customer relationship by letting them feel we care.

STRATEGY FOR CAPTURING VALUES

Our philosophy and strategy to capture values will be to Win consumers' trust.
17

 Understand consumers' nutritional and emotional preferences. Serving our consumers and improving their quality of life. Giving them value satisfaction and healthy nutrition. Change our product according to need of customer. Our strategy starts and ends with the consumer. Consumer Relationship Marketing lies at the heart of Nestl Consumer Services. We will strive to build a long-term, sustainable relationship of trust and loyalty. We will develop our products based on consumer tastes and preferences, we will get profit and it will generate our capital.

4Ps OF MARKETING MIX

PRODUCT PRODUCT LINE
Nestle jam would include in confectionaries. It is provided in different flavors. These flavors include mango, orange, plum, rose, apple, mix fruit, apple orange, and mango orange.

PACKAGING
Nestle will design and produce the jam bottles and the wrappers by keeping focus on the following purposes: To contain and protect the food products. For the attractiveness of the product using packing of the product as a tool. As nestle is relevant to food products which are highly perishable so packaging focuses on storage and convenience. Its packaging will be reusable by the customers. E.g. nestle bottles obtained from bottled jam. Packaging will be made more impressive especially by increasing the volume of bottles.

LABELING
Nestle labeling will focus on persuasiveness. Nestle will not give any expressed warranty on its daily usable Jam as it gives on medical products Nestle Delicious Jam's label will give all information about their product like ingredients which will be used in it and all instructions regarding product. Retail price will also be shown on its label

18

BRAND
Nestle products use the brand name Nestle. The customer who come to purchase nestle products, the name of this brand affects positively in the mind of consumer. They prefer Nestle jam to other brands.

1) BRAND MARK 2) TRADE MARK

As Nestle is a company purely related to food industry and it uses the symbol that includes three sparrows in nest. No other company will be able to use the name Nestle for himself because Nestle has been registered as a trade mark.

BRANDING STRATEGY OF NESTLE JAM

Nestle brand name will present a message of caring which make it distinctive and attractive than other companies. Delicious Jam's brand is good food for good life. The message of family protection will be enough to get the attraction of customer. The Nestl's brand name is easy to understand & translate. It is easy to pronounce and it is also easy to recognize. We will use the same brand mark for our new product that is three sparrows in nests

PRODUCT LIFE CYCLE

PRODUCT LIFE CYCLE OF JAMS
If we look at jams in product life cycle then it is easy to judge that they are at maturity stage. Because jam market has become the pioneer market and at this stage its profit is positive and sales do not decrease because jams companies reinvent their products in terms of packaging, labeling, and vitamins and continue to add values into their products to capture values from customers. There exists high competition among jams companies so they need high distribution and promotion expenses.

19

PRODUCT LIFE CYCLE OF NESTLE JAM

Nestle jam will start from the introduction stage. Nestle jam will be the market pioneer and at this stage its profit will be negative or low due to low sale and high distribution and promotion expenses. Other major reason to be at introduction stage may be unawareness in rural and urban areas. The people will not be aware of the nestle jam, thats why their sale may be low. To increase their sale they will continue to bring changes in product life cycle by

effective promotion and by formulating new price strategies etc. so it will have a long maturity period.

PRICE
In setting the price of product, the company will follow four steps procedure as given below Company will establish its objectives (Survival, max. supposed profit, revenue, sale growth etc) Company will determine the demand schedule which will show the probable quantity purchased per period at alternative price Company will estimate how their costs will vary at different output levels. Company will examine the competitors price

PRICING STRATEGY MARKETING SKIMMING & PENETRATION PRICING

This strategy is used in any company when it launched a new product. And it offers a high price for new product to skim maximum earning more profit and revenue and in this way company makes fewer but more profitable sales. While other pricing is used by those company which is non branding and need to increase market share, to capture value from customer, to attract customer when they launched new product in market.
20

In our case we will use penetration pricing strategy to capture value from customer, to attract them and to increase our share because there is a lot of brand present in market whose product of jam is bought by people in large amount like national, Michal n Shezan and they already have capture market share in large amount

BY PRODUCT
We will use by product pricing strategy for nestle with the penetration. We will offer kitkat to our customers in introduction phase, because we are more focusing on children and in this way we can easily attract people for our nestle jam.

PRICING OBJECTIVES
The objectives for pricing nestle jam are as follows: To achieve a target return To maximize profit Stabilize prices to meet competition Market share Leadership Product Quality Leadership

FACTORS AFFECTING THE PRICE OF NESTLE JAMS

The following are the some factors that may affect the price of Nestle Jams Expensive technology Miserable condition of transportation and roads The unstable politicians, which can have positive and negative effect on the price The labor cost is low in Pakistan as compare to the others Advertisement cost Increase in taxes that may affect the price of product

PLACE
As far as the distribution is concerned, NESTLE will make segmentation with respect demographic and geographic basis. The distribution network needs to be more extended; NESTLE will hire more potential distributors for the distribution of NESTLE Delicious Jam in several parts of the country so that their product will reach to every corner of the country.

RETAILING
Retailers plays a very important role in the sale of nestle products. Nestle does not directly its products to the end consumers. Nestle has different retailers at different levels.

RETAILERS CLASSIFIED BY MARKETING STRATEGIES

21

1)

DEPARTMENT STORES

Mostly nestle delicious jam will be sold on the department stores. Because these stores sell the Nestls products in a large quantity.
2)

SUPERMARKETS
Nestle will sell its fictitious product on the supermarkets.

3)

CONVENIENCE STORES

To facilitate the consumer nestle will selling Delicious jam by the convenience stores. A very large portion of the sale can be sold on convenience stores.

CHANNEL OF DISTRIBUTION
DISTRIBUTION CHANNELS
Nestle do not sell the product directly. It sells its products by indirect distribution channel.

Finishe d product s

Whole sellers

Retaile rs

Consume rs

VERTICAL MARKETING SYSTEM

Nestle uses corporate vertical marketing system.

MULTIPLE DISTRIBUTION CHANNELS

Nestle adopts multiple distribution channels due to Size of the buyers. We would also use the same distribution channels for our fictitious product that the Nestle company is recently using e.g.; Indirect distribution channel, Vertical marketing system, Multiple distribution channels.

PROMOTION
Thus company will hire, train and motivate sales people. It will set up communication and promotion programs consisting of advertising, direct marketing, sales promotion and public relation as mentioned below. ADVERTISING Print and broadcast ads Billboards Posters SALES PROMOTION Contests Lotteries Gifts DIRECT MARKETING Catalogs Mailings Telemarketing PUBLIC RELATION Seminars Annual reports Charitable donations
22

Brochures Leaflets Directories

Premium Exhibits Sampling

Electronic Shopping TV shopping

Company magazine Sponsorship Publication

It means that NESTLE will advertise in print media like newspapers, magazines e.g. Dawn, Nawa-e-Waqat, Jung and in some journals for promotional purposes. It will advertise on electronic media & Broad cast media e.g. TV, Radio which will be more attractive as compare to the advertisement of competitor product and Nestle will also use billboards and printed ads for retailers, moreover the company has got a website on which is Nestle will provide special offers to the distributors. When they lunched new juice brand, they offer buy one pack and get one free to distributors. Nestl can use the same strategy for Nestle Delicious Jam. They will offer free trial of the newly introducing jam to the general public.

PROMOTION MIX STRATEGY

In consumer products the management of Nestle believes in pull strategy i.e. creating pull through advertising. So we will use the pull strategy to promote the sale of Nestle Delicious Jam through media.

STRATEGIC PLANNING
BCG MATRIX FOR CURRENTLY PRODUCING SBUS
STARS
The two Sbus, Mineral water and Confectioneries fall into this category of the BCG. These SBUs have high market share and high industry growth rate. These Sbus are requiring lots of investment to compete in the growing market. For example, lots of money is being spent and aggressive marketing strategies have been implemented for the Mineral water to build and maintain market share. Nestle Pure Life has captured 50 % of the bottled-water market in Pakistan since it was introduced in 1998. Its approximate sales for 1999 are RS. 70, 401000. This sales figure is quite impressive as the sales rose quite high in only one year. It is predicted that there will be additional growth in the mineral water category in coming years. The sales of the confectioneries rose to RS. 106,559 000 from RS. 87,758 000. The huge increase of RS. 18, 801 000 puts this SBU in the stars category and shows its increasing market share. There is a growing market for the products in confectioneries for example Kitkat (eventhough its imported), Polo Smarties etc. This can be proven from the fact that Nestle keeps introducing new products in this category for example Allens Soothers were launched during the last quarter of 1998.
23

CASHCOWS
Milk products, Coffee and Dietetic and Infant food have a high market share and are doing business in mature industries. Since the customers of this product category are loyal, the marketing costs of these SBUs is quite low and as a result a large amount of cash can be generated. Customer Loyalty is a must for these Cash cows to maintain their market share. The sales of the Milk products have increased to RS. 108,430000 from RS. 87,758000. This huge increase in sales reflects the high market share of this SBU. However, its growth rate is low because in general this category is in its maturity stage that is a number of milk products have been launched by Nestle, most of which are quite old. An innovation has not really been made in this category. The same conclusion can be made about Coffee. There is an already existing market for Coffee which is not increasing further by a large amount. The sales of Coffee were Rs. 46,89 000 in 1999 and Rs. 392,00 000 in 1998. This huge difference shows that a great amount of cash is being generated from this SBU. Sales of Dietetic and Infant food rose to Rs. 60,935 000 from Rs. 52,655 000. The infant foods unit of Nestle is operating in a mature industry. Like the milk products, the infant foods have been around for a long time without barely any new product line being started in this category.

QUESTION MARKS
Included in this section are the culinary products of the organization. The products such as Maggi 2-minute Noodles and Maggi cold sauces have a low market share and a high growth rate. These products especially the cold sauces are operating in a highly competitive market. The approximate sales were Rs. 79,919 000 in 1999 and Rs. 60,818 000 in 1998. This figure represents a great potential for growth in future. However, in contrast, the market share of the products in this category is not very high currently. A reason for this is that Nestle just recently introduced cold sauces such as Emily sauce etc. However the enthusiasm, with which the customers received the different flavors of sauces, portrays a very high potential for future growth. The firm needs to focus on differentiating its products in the competitive market to gain customers.

DOGS
Chocolate and Fruit drinks fall into this category and they possess a low market share and a low growth rate. Chocolate drinks had sales of Rs. 19639000 in 1999, which rose from Rs. 19541000 in 1998. This is quite a small increase considering the rise in the sales of other SBUs. However, the chocolate drinks are still profitable so the firm does not have to worry about liquidating or getting rid of this SBU. The sales of Fruit drinks rose to Rs. 40,620 000 in 1999 from Rs. 38,103 000 in 1998. There has been a small amount of increase; however it is not a lot compared to other SBUs. Firstly, there is not a huge market for chocolate drinks in Pakistan. People usually tend to buy light juices like apple or orange juice or Pepsi instead of chocolate drinks. Secondly, regarding the fruit juices, there are not a lot of flavors available currently in this category.
24

Nestle needs to introduce new flavors such as apple, grape etc. to capture the market that prefer these flavors. This will not only increase the sales of the SBU, but it will also increase its market share. At the moment, additional amount of money is not being invested in these SBUs, as they are not very profitable. Nestle is currently trying to maximize profits from this category by minimizing expenditures and by differentiating the product to build market share.

BOSTON CONSULTING GROUP (BCG) MATRIX FOR DELICIOUS JAM

It will lay in question mark because it may be possible that many people will not be aware of this newly made product which will show the low sale of this product in starting. So it may have low growth in beginning period. Different strategies will be made for the promotion of this product and the firm will focus on differentiating its products in the competitive market to gain customers. The introduction of new variety in terms of features, packaging, labeling and flavor may lead to the high future growth rate. In the start the market share would be low and after penetration it will increase its share in market.

DEVELOPING STRATEGY FOR GROWTH AND DOWNSIZING

From the matrix of Market Expansion Grid, for the company growth, the strategy of diversification will be applied for the Nestle Jam because the company is starting up with the product outside the companys current products and markets.

SWOT ANALYSIS OF NESTLE JAM

STRENGTHS
The only brand in the area maintaining its quality and taste and having the same impact on its customer Economical Delicious jam in market with many flavors Strong Brand Name

WEAKNESS
Communication may be weak Lack of Awareness for the new product

OPPORTUNTIES
Concentrating on distributing areas will increase sales Increase in product line by offering different flavors.

25

THREATS
Sharing of segments by the competitors

RETURN ON INVESTMENT (ROI)

A Nestle Company can assess the return on investment in terms of standard marketing performance measures, such as brand awareness and sales or market shares of the Nestle Jam. Nestle Jam will use sales and share data to evaluate specific advertisement campaigns which will depict real-life scenarios of consumers using different flavored jams. Nestle will use customer-centered measures of marketing, such as customer acquisition, customer retention and customer lifetime value that will produce returns in the form of more profitable customer relationships. Moreover, the marketing investments could result in improved customer value and satisfaction, which, in turn, will increase customer attraction and retention. This will increase individual customer lifetime values and the companys overall customer equity. Increased customer equity, in relation to the cost of the marketing investments, will determine the return on marketing investments.

MARKET IMPLEMENTATION
During the manufacturing of the product we would go for its advertising. We would distribute broachers to create awareness. Then we would hire some sign board in different major cities of Pakistan. And at the same time we would go for TV and radio commercials. In all this process our main focus would be on TV commercials and sign boards because now a day these are the most popular things among the consumers.

CONCLUSION
Nestle is one of the latest and pioneer food producing company in Pakistan The company is performing very well for the financial point of view so it will spend a huge amount on the promotion of Nestle Delicious Jam It is leader in food goods in Pakistan. It will provide best quality of food It pays a huge amount annually in the form of taxes to the government of Pakistan Companys distribution channels are very effective It has more variety in food products line as compared to its competitors
26

 In consumer products the management of Nestle believes in

pull strategy i.e. creating pull through advertising

REFERENCES
www.google.com www.info.com www.nestle.com www.wikipedia.com www.scribd.com 6. www.answers.com 7. Internship Reports 8. Nestle Annual Reports 9. Mr.Muzamil Hussain 10. Mr.Danish
1. 2. 3. 4. 5.

Ph#0300-4263252 Ph#0321-4144196

TOTAL WORDS
7,033 words

27