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RE-LAUNCH OF NESTLE’ LIMO AND MALTA
Submitted by: Aqib Akhter Qazi Reema Ehtesham 12975 12990
Submitted to: Dr. MAK CHISHTY Due date: April 28, 2012
RE-LAUNCH OF NESTLE’ LIMO AND MALTA
…22 SOT analysis……………………………………………..…..27 Conclusion……………………………………………………….………………09 Goals…………………………………………………….10 Nestle Pakistan……………………………………………………12 Previous marketing mix………………………………………….28 3|Page .……24 Recommendations……………………………………………….…………………08 Mission & vision………………………………….14 New marketing mix………………………………………………17 PMG matrix…………………………………………….TABLE OF CONTENTS Company history & background……………….………..…………21 BCG matrix……………………………………………………..
we would like to thank Almighty Allah for blessing us with the courage. strength. We have benefited a great deal while searching for the material and making the report and hope that people will also benefit from it. Dr. Furthermore.Acknowledgement First of all. and for making this report and incredible learning experience. 5|Page . we would like to extend our special thanks and appreciation our course instructor. MAK CHISHTY for her constant guidance and encouragement throughout the semester. and ability with which we were able to complete this report successfully.
books and survey. Sincerely. strategy and swot analysis were made by us. for guiding us at all levels and being a very kind and patient teacher. which provided us with tremendous amount of information. recommendations. which involved much help from the internet. Secondary data used in introduction. This Information has been collected through survey and books from library. This report has given us a great opportunity to add to our knowledge and learning. It was a truly difficult task but we have tried to do our best to make this report after conducting thorough research. This report identifies the Background. We hope that this report will be good enough to come up to your level of expectation and requirement. MAK CHISHTY Course instructor Iqra University. and helping us in all the endeavors and difficulties that came across. SWOT analysis. Re launch strategy. Target market of the product. Aqib Akhter Qazi Reema Ehtesham 6|Page . Marketing environment. 2012 Dr. Karachi Respected Sir. We are very thankful to you. history and past image of brand.Letter of Transmittal April 28. and will be helpful to the society in general. all material used in the report has been acknowledged properly. We hereby present our project report “Re-launch of Nestlé Limo and Malta”.
the main focus is promotional activities and sales will then follow. as the product was failed because of too many competitors and less advertisement was done the design on the brand was un attractive the cost didn’t reflect the organization.SYNOPSIS This report was made with the idea to re-launch the infamous brand Nestlé Limo and Malta. Many strategies are suggested of how to use the price penetration to enter the market and grab market share. 7|Page . Re-designing the whole brand image of the drink was the recommendation with added improvements as the taste of the product was similar to competitors it was that X-factor which led the brand go down the drain. when and where the product should be launched. what does the market lacks. The research draws attention to why the brand failed. This report will give a complete over view that how. how the dynamic market shifts how price and taste are the two major factors in instant drinks industry.
000 people are working in almost every country in the world. From which almost 8. The company succeeded in achieving sustainable profitable growth during the year under the view driven by successful marketing and sales strategies and focus on key initiatives. In the shed of Nestlé 247. One factory in Islamabad and two in Karachi produce bottled water.COMPANY HISTORY AND BACK GROUND Nestlé Introduction: Nestlé with headquarters in Vevey. Nestlé's existing products grow through innovation and renovation while maintaining a balance in geographic activities and product lines. Consumer confidence in the company’s brand has further strengthened and the trade remains confident as ever in doing business with it. the company operates five production facilities. Headquarters in Lahore. Through its effective marketing and a vast sales and distribution network thought out the country. Two of its factories in Sheikhupura and Kabirwala and multi product factories. it ensures that its products are made available to consumers whenever. 8|Page . Switzerland was founded in 1866 by Henri Nestlé and is today the world's biggest food and beverage company. wherever and however.000 employees are working in Pakistan. The Company's strategy is guided by several fundamental principles. Innovation and renovation remained the key to development of new products.
capital efficient and profitable long term growth.Haleeb and other are moves around 20to 30%. MISSION Build branded food business to improve quality of life by offering tasty. While maximizing stakeholder value.5 Billion Rupees. Nestlé share as compared to nur pur.Nestlé company is registered in Pakistan under the company ordinance 1984. affordable and highly nutritional product to our consumer.13. VISION The strategic priorities of Nestlé milkpak are focuses on delivering shareholder value through the achievement of sustainable. Improvements in profitability will be achieved 9|Page .Total turnover:. As it’s a public company but still not registered in any Stock Exchange in PAKISTAN Over all company market share is 67%.
to continue playing a significant role in the social and environmental sectors of the country. for nutrition and pleasure.from infancy to old age.while respecting quality and safety standards at all times. we envision Nestlé milkpak to grow in the shortest possible time into the number one food company in Pakistan with unique ability to meet the needs of consumers of every age group. We envision the company to develop an extremely motivated and professionally trained INNOVATION AND RENOVATION We aspire. as a respected corporate citizen. through development of a large variety of food categories of the highest quality. In line with this objective. Most innovative and fastest growing food company offering Products enjoyed in “Every home every day” GOALS Nestlé'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 10 | P a g e .
Nestlé does not favor short-term profit at the expense of successful long-term business development. legislation is the most effective safeguard of responsible conduct. as a general rule. and business partners. employees. 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. 11 | P a g e . Therefore recruitment of the right people and ongoing training and development are crucial. Nestlé believes that. beliefs and actions of the Company behind brands in which they place their trust and that without its consumers the Company would not exist. Nestlé is conscious of the fact that the success of a corporation is a reflection of the professionalism.shareholders. consumers. conduct and the responsible attitude of its management and employees. Nestlé recognizes that its consumers have a sincere and legitimate interest in the behavior.
Nestle Pakistan deals currently in Manufacturing. 10. 8. 2. Milkpak Nesvita Beverages: 1. 9. Processing. 3. Nescafe Nesquik Milo Fruita Vitals Nido Neslac 4. 4. 7. and sale of these products Milk Dairy & Chilled Dairy: 1. 2. 3.A based in Switzerland. Cerelac 12 | P a g e . 5. 6. 2.Nestlé Pakistan Nestlé Pakistan Limited is a subsidiary of Nestlé S. Pure Life AVA Baby Food: 1. Bottled Water: Everyday Dahi Fruit Yoghurt Raita Milkpak Cream Creation 1.
2. Kitkat Kitkat Chunky Polo 3. 4. 3. Cornflakes Honey gold Flakes Koko Krunch Milo Chocolate & Confectionary: 1. 13 | P a g e .Food: 1. 2. Maggi Noodles Breakfast Cereals: 1.
PREVIOUS MARKETING MIX PRODUCT: INTRODUCTION OF LEMO & MALTA Limo/Malta is the product of Nestle. 14 | P a g e . Which was launched in July 2005.
Thickener (Gum acacia. Nutritional Information Serving size Energy Total Fat Carbohydrates-Total Calcium Magnesium Potassium Vitamin C 1 glass (200ml) 305kj. NESTLÉ® Limo (Lemon) gives you 36% RDA of Vitamin C and NESTLÉ® Malta (Orange) gives you 24% RDA of Vitamin C. Natural and Artificial Sweeteners.NESTLÉ® Limo (Lemon) & NESTLÉ® Malta (Orange) Instant Drinks provide fruit-filled refreshment that quenches your thirst and energizes your body with an instant citrus boost! They are both available in 25g single-serve sachets that are convenient and affordable and a 500gm jar. 73 kcal 0g 18g 46 mg 04 mg 12 mg 13 mg 15 | P a g e . Anti caking Agent (Tri Calcium Phosphate). Xanthan Gum). But what really hits the spot is that NESTLÉ® Instant Drinks are packed with Vitamin C that provides immunity against diseases and helps put the glow in your skin. Vitamin C. Glucose. So get refreshed and invigorated with NESTLÉ® Limo and NESTLÉ® Malta! Ingredients Sugar. Acid (Citric Acid). Carboxy Methyl Cellulose. Orange / Lemon flavor.
5 Rs.V and selective channels etc. PRICE Price was charged as follows Sachet Jar Rs. 2. wobblers. 2. Gift Scheme was introduced on redemption of empty packets. However Nestlé’s distribution structure was followed that 3. Is company to distributor to wholesaler to retailers? 16 | P a g e . Powder was sampled to create awareness. 4. banners. 160 Promotion Company planned for the following promotional activities 1. mobiles. ATL on major billboards. shelf talkers etc. 3. Placement 1. Distribution was restricted to big cities at selected retailers. limited time on T. buntings. BTL massive use of Point-of-sale (POS) material. Which include posters.
SKU’s and additional energizing components of glucose and vitamin-D and sugar free version. Nestle Pakistan is relaunching nestle Limo & Malta with different name with many flavors.NEW MARKETING MIX Product Introduction In Pakistan generally hot weather. instant drinks are consumed in water to provide refreshment from sweltering heat of the sun. that are easy to prepare for everyone such as: PRODUCT NEW NAME: NESTLE’ DRINK Product Flavors Nestle Lemonade Nestle Orange Nestle Pomegranate Nestle Rose Nestle Pineapple Nestle Strawberry Nestle Mango Nestle Blueberry Nestle Peach 17 | P a g e .
As people are becoming more and more health conscious day by day. containing aspartame. Raspberry. nestle instant drinks of all flavors are packed in sun protective pouches and sachets that are costly for the firm because customer satisfaction and quality transfer is the duty of Nestle Pakistan. 18 | P a g e .SKU’s These SKU’s are available in all flavors. and Cherry Product Packaging Good design contributes to product usefulness. Another way to add value is through distinctive product style and design. which comes in various packages and in flavors such as Lemon. Sachet of 25gms Pouch of 150 gms Pouch of 250 gms Jar of 250 gms Jar of 500 gms Sugar free version We also make a sugar-free version of Tang. Peach. Orange. A sensational style may grab attention and produce pleasing aesthetics.
Heavy advertising on TV. 170 PROMOTION: Promotion is one of the most important factors of marketing. 30 Rs. it is done to affect the consumer behavior in order to achieve sales and increase product image. 7 Rs. We offer competitive prices. The promotional strategies for nestle instant drinks would consist of the following sources: PROMOTION ACTIVITY Launch an ad campaign on billboards and magazines in various areas of major cities and magazine. In promotion the major task is tomake consumers aware of the product and to attract consumer towards the product by highlighting the advantages of the product. 80 Rs. newspapers and magazines 19 | P a g e DURATION 2 weeks 4 weeks . 90 Rs.PRICE Price is the sum of all values that consumers exchange for the benefits of having or using the product or service of the specific company. our price list is given below: Sachet of 25gms Pouch of 150 gms Pouch of 250 gms Jar of 250 gms Jar of 500 gms Rs.
V and selective channels etc. ATL on major billboards. television and magazines advertisements. 3. Prize contests will be held in Karachi . one set of jar of 250mg etc) Reduce number of billboards. quetta.Sponsor a highly prestigious chain of events or concerts. This is as follows: Our distribution strategies would include: 1. limited time on T. Retail coverage all the major cities Major accounts of super markets to be served 20 | P a g e . 2. We shall use Nestlé’s existing distribution channel. Islamabad. 2. Continue Advertising including both: 1. BTL at point of sale (pos) 3 weeks During Ramzan December March (2012) PLACEMENT Placement is distribution channel through which product is placed at the locations where consumer can easily purchase it. We shall offer attractive offers to our whole distribution channel to distribute it and to work on our push strategy. Lahore and peshawar and people who win will get prizes (such as one bundle of sachet.
as well as “Nestle Drinks sugar free” 21 | P a g e . however we have introduced a new product with name “Nestle’ Drink” with additional feature of glucose and vitamin-D. Supply chain should be simple and should be direct from manufacturer to wholesaler to retailer If product is successful after a year of launch more cities will be covered. 5.4. PMG MATRIX Product Development Our re-launch strategy is based on product development. Our target market is the same.
22 | P a g e .BCG MATRIX Previous BCG Matrix Nestle’ limo and Nestle’ limo and malta proved as DOG status at the BCG matrix. They had lowest market share accompanied with lowest market growth. This product suffered losses. Ultimately the manufacturing of the product was stopped.
because the demand for instant drinks is still increasing.Current BCG matrix We expect our product initially at QUESTION MARK STATUS at BCG matrix. initially we expect low market share. We offer them very attractive benefits to become our merchandising partners. 23 | P a g e . Our merchandising strategy includes gondola merchandising with both primary and secondary homes in all super stores and retailers in big cities all over Pakistan. It includes combining products. However. and spaces into a stimulating and engaging display to encourage the sale of a product or service. environments. We are confident for high market growth. Our merchandising object is to attract consumers through neat and clean products placed on eye-catching shelves at reasonable height. We have made agreements with many super store to push our product through attractive merchandising and personal talk. MERCHANDISING Merchandising is the activity of promoting the sale of goods. because our direct competitors have captured large amount of market share. especially by their presentation in retail outlets.
2. 3. 4.SWOT ANALYIS The SWOT analysis of Nestle’ Drink (formerly Nestlé Limo and malta) has been discussed below: Strengths: Previous strength: The only Nestlé Pakistan is awarded with the following Certificates: 1. HACCP (in process safety controls) ISO 9001-2000 (better quality) ISO 14000 (environment friendly operations) Excellent track record of the company Nestlé’s brand name depicts the high quality product 24 | P a g e .
500 million on the promotion of Nestle’ Drinks for first six months. Our product has been launced with five SKUs and many flavours and we have increased our promotional budget. Company has allocated budget of Rs. Weaknesses: Previous weaknesses 1. which strengthens the energy of users. which would definitely provide us ground to compete in the market: 1.Current strength: We realize that our above strengths could not lead to success because of failure of our marketing strategies. Addition of energizing component such as glucose and vitamin-D. Product shall be launched with 5 SKUs which will definitely attract our target segment Introduction of Nestlé’s sugar free drink will provide additional choice to our customers. Nestle’ limo and malta was intoducd with just two flavours and two SKUs Low budget for promotion Current weaknesses Above weaknesses have been overcome. However currently we face following weaknesses: 25 | P a g e . 2. 3. Instead we possess following strengths. 2. 4.
1. 1. 3. 2. Increased media influence on people. There is high demand and consumption of instant drinks 2. Previous image of brand Discouraged retailers because of past performance Launching of the brand in limited cities Opportunities: Previous opportunities: 1. 2. Current opportunities Because of failure in our distribution and promotion activities we could not take the opportunity of excellent image “Nestle” brand. Good image of “Nestle” would help us to attract the consumers Increased market demand. 26 | P a g e . However currently we have opportunities which we can avail in future to increase our market share: The brand image of “nestle” is the sign of high quality and reliability in the mind of both consumer and distributors. People prefer instant drinks than carbonated drinks.
and 2. Current threats 1. Changing brand name from Nestle’ Limo and Malta to Nestle’ Drinks Introducing the Sugar free version Offering Nestle’ Drink in five SKUs and in various fruit-flavors. There is high demand for competitors’ brand in the market. 3. High competition in the market. We Launch during Ramadan so we don’t have enough time to grab market RECOMMENDATIONS Our recommendations for re-launch include: 1. Threats: Previous threats 1. 4. 2. LIMOPANI AND ENERGILE have established their strong position. We realize that our direct competitors such as TANG. 500 millions. Enhancing the budget for promotional activities to Rs. 2. 27 | P a g e .
if our recommendations are fulfilled.5. We realize that our direct competitors are wellestablished however we have great opportunity of Nestle’s brand image and growing demand and consumption for instant drinks in the market. 7. Offering attractive offers to our distribution partners Ensuring successful merchandising Getting feedback for 6 months after launches and if required change in taste. 6. Our effective marketing strategies including 4P’s and merchandising will lead to successful re-launch of Nestle’ Limo and Malta as “Nestle’ Drinks” 28 | P a g e . flavor etc. CONCLUSION We expect successful re-launch of Nestle’ Limo and Malta as “Nestle’ Drinks”.
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