Marketing Plan of Nestle Fruita Vitals

Nestle Fruita Vitals

Submitted To:

Sir Rao Bakhat Yawar

Submitted By:

Fiza Khan (15-BS-R-21)

Khizra Ghori (15-BS-R-24)

Hafiza Jaweria Saghir (15-BS-R-51)

Hina Maqsood (15-BS-R-61)

Sandaleen Bushra (15-BS-S-103)

Group: 01

Submission Date: 17 May 2019

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Marketing Plan of Nestle Fruita Vitals

Executive Summary

Nestle foods was established in 1866. Since then it has continued to provide quality products
to its customers with products and packaging innovations. Nestle Juices is Pakistan’s number
one and fastest growing food company. The company is trying their level best to differentiate
themselves from other local companies and trying to win the competition in juice industry by
adopting the modern trends and technologies in both operational fields as well as in
marketing of their products. Nestle Fruita Vitals is a range of premium juices and nectars
from nestle. Nestle Fruita Vitals has always been committed to the health and wellbeing of
the consumers. Nestle Fruita Vitals is currently the market leader of the juices and nectar
category in Pakistan.

In this detailed project we covered almost all the topics related to the marketing plan of
Nestle Fruita vitals. First of all we presented the company’s introduction along with the brief
introduction of the Nestle Fruita Vitals. Then we did the situational analysis of Nestle Fruita
Vitals by using tools like Porter five forces model, Boston box and Pest analysis. Then
ultimately we did the SWOT analysis of Nestle Fruita vitals to find its strengths, weaknesses,
opportunities and threats.

In the next phase of the project we decided some SMART objectives for the marketing plan
of the Nestle Fruita Vitals. Then according to these objectives we prepared the detailed
marketing strategy including mission, market and 4P’s. And ultimately we reached to the
implementation and control part of our marketing plan for Nestle Fruita Vitals.

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Marketing Plan of Nestle Fruita Vitals

Introduction

Nestlé’s start date back to 1866, when two split Swiss Enterprise were found that would later
form the core of Nestle. In the subsequent decades, the two challenging enterprise forcefully
delayed their businesses throughout Europe and the United States. Nestle was formed in 1905
by the merger of the Anglo-Swiss Milk Company, established in 1866 by brothers George
Page and Charles Page, and Farine Lactee Henri Nestle, founded in 1866 by Henri Nestle.
The company grows significantly during the First World War and again following the Second
World War, expanding its contributions outside its early reduced milk and child formula
products. The company has made a number of corporate acquisitions. Nestlé’s products
include baby food, bottled water, breakfast cereals, coffee, confectionery, dairy products, ice
cream, pet foods and snacks. 29 of Nestlé’s brands have annual sales of over 1 billion Swiss
francs (about $ 1.1 billion). Nestle has around 450 factories, operates in 86 countries, and
employs around 328,000 people. As nutrition, health and wellness company, Nestle, is
committed to the improvement of value of life by helping community in which it operates to
meet basic and necessary human needs.

Nestlé in Pakistan is operating since 1988 under a joint venture with Milk Pak ltd and took
over management in 1992. The company’s strategy is guided by Nestlé’s Corporate Business
Principles which are in line with internationally accepted best practices and ethical
performance culture. Nestlé’s existing products grow through innovation and renovation
while maintaining a balance in geographic activities and product lines. Long-term potential is
never sacrificed for short-term performance. The Company’s priority is to bring the best and
most relevant products to people, wherever they are, whatever their needs are, and for all age
groups. Nestlé Pakistan today is the leading Food & Beverages Company in Pakistan with
key focus on Nutrition, Health and Wellness and reaching the remotest of locations
throughout Pakistan to serve the consumers. Nestlé Pakistan also prides itself in being the
leaders in Nutrition, Health & Wellness.

Nestle Juices have evolved over the period of time, starting from just a couple of flavours to
now being available in a wide array of natural fruit flavours. Nestle Fruita Vitals is the finest
selection of fruit juices from the house of Nestlé. NESTLÉ FRUITA VITALS is a brand that
inspires the world to be more positive and encourages people to celebrate the positivity
around them. NESTLÉ Fruita Vitals Premium and Super Premium range is currently
available in Chaunsa, Red Grape, Apple, Kinnow, Pineapple, Guava, Peach and Red Anar

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Marketing Plan of Nestle Fruita Vitals

that offers the perfect blend of super fruit. NESTLÉ Fruita Vitals also launched its three new
flavours - Mint Margarita, Pina Colada and Royal Mangoes. Nestlé’s strategy for Nestlé
Fruita Vitals has been fair, simple and fruitful – Pure fruit, pure energy and pure juice.

Overview of Marketing Orientation

Marketing department is considered to be the backbone of any organization because it helps

the company to boost the sales of its products through promotional activities.

Promotion is a critical issue for any organization. Each organization secures or sets a
different particular spending plan for promotional activities. Nestle is no exception; so it has
a different spending plan allotted for promotional activities. Company spends huge amount to
promote its products and Nestle Fruita Vitals is one of them from its products.

At start when company has launched Fruita Vitals, it puts its most extreme attention on the
advertisement of this new noncarbonated beverage. It was endeavoring to get to the nearby
position in the market with great quality juice. Nestle coordinates its financial plan
adequately and actualizes proficiently to have an appropriate promotional activity.

At starts Fruita Vitals focused on internet advertisement and store promotion, as it was a new
product so they were not spending too much money on the media advertisement.

Currently, Fruita Vitals is heavily focusing on TVC advertisement and social media
advertisement to compete its competitors. For TVC advertisement it uses celebrity
endorsement to attract the youth.

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Marketing Plan of Nestle Fruita Vitals

SITUATIONAL ANALYSIS

Value Chain

Supporting
Activities

• Inbound Logistics
• Production
Core
Activities • Marketing
• Sales
• Outbound Logistics

Market Customers

Segmentation

A market segment consists of a group of customers who share a similar set of needs and
wants.

Segmentation is made on the basis of the following

Demographic Segmentation

Fruita Vitals has different demographic areas to segment their market. Like – age and
income.

Age: Fruita Vitals target ages from all groups of people, like children, teenagers, young
people, middle age group, and the older people; as everyone likes pure and good quality
juice.

Income: There are a lot of income groups in the market. Fruita Vitals targets mostly the
upper class, upper middle class and middle class people (SEC-A,B,C).As it is a premium
juice its price are relatively higher than other juices being offered in the market. It targets

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Marketing Plan of Nestle Fruita Vitals

school, university going students to working professionals. It is preferred by a variety of

customers.

Psychographic Segmentation

Fruita Vitals contains less than 100 calories per serving making it a calorie smart juice. It
targets the calorie conscious people who focus on a healthy life style. To make people aware
that Fruita Vitals is not only for professionals and executive people ,it carried out an
advertisement in which they showed university students enjoying the calorie smart juice,
changing its brand image from executive class to fun and enthusiastic. It is a very good
source of vitamin C with no sugar added in its Orange juice. It fulfils its 3S promise i.e.
SMART,SAFE AND SUPERB.

Geographical Segmentation

Making it a premium quality juice it’s available in all the metropolitan cities of Pakistan i.e.
Karachi, Lahore, Islamabad, Rawalpindi, Gujranwala, Multan, Faisalabad, Sialkot,
Hyderabad, Peshawar.

Behavioral Segmentation

Fruita Vitals segments the buyers into groups on the basis of their knowledge, attitude, usage
pattern, or response to a product. There are 3 kinds of users of Fruita vitals which are New
Users, Potential Users and the Regular Users. Nestle welcomes all three kinds of users. Due
to the existence of Potential and Regular Users Fruita Vitals is bringing out new flavors to its
product range.

Fruita Vitals carried out an occasional promotion on ”Pakistan Resolution Day” in hyper
star by selling 1000 ML Fruita Vital (made in Pakistan) at less price.

Segmentation on the basis of Benefits and Needs

 For Travelling and Occasional Fruita Vitals has introduced their 200 ML pack for
convenience during travelling or occasions mostly for those people who are busy with
their working schedules because they have to carry single or small packing and juices
are the best for that.
 For Domestic Use 1000ML pack for parties or family gatherings.

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Marketing Plan of Nestle Fruita Vitals

Targeting

Target market consists of a set of buyers who share common needs or characteristics that the
company decides to serve. A target market is a group of customers that the business has
chosen to point its marketing efforts and ultimately its merchandise towards

The three most common target marketing strategies are differentiated, undifferentiated and
concentrated.

Nestle use differentiated marketing strategy for Fruita Vitals. A differentiated marketing
strategy targets different market segments with specific marketing mixes designed especially
to meet those segments' needs. Each mix includes a Product, Price, Placement and
Promotional program customized specifically for a particular segment.

Positioning

Nestle has created a certain image in consumers mind about their product. It can be expected

that Fruita Vitals being a product of Nestle will also be able to create a good image in

consumers mind. It has certain quality that ensures consumers belief to prefer this product

more than the competitors.

 Healthy and Nutritional

 High quality product
 Reliable and safe

Competitor Analysis

Fruita Vitals has 40% of maket shares. Direct Competitor of Nestle Fruita Vitals are

 Olfrute by Olpers 10%market shares

 Shezan Beverages (All Pure, fruit drink, Twist) 20% market shares
 Slice juice under umbrella of PepsiCo 10% market shares
 Fresher by Al-Hilal Industries 10% market shares
 Tropico and Just Fruit by Haleeb Foods 10% market shares

Indirect Competitor of Nestle Fruita Vitals are

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Marketing Plan of Nestle Fruita Vitals

 Coca Cola,Fanta,Sprite by Coca Cola Company

 Pepsi Cola,Mountain Dew,7up,Mirinda by PepsiCo
 Energy Drinks(Red Bull,Monster)
 Tea(Lipton,Tapal Danedar,Vital Tea, Supreme)
 Coffee( Nescafe,Gloria Jeans and others)

Marketing Mix Effectiveness

Product

 Variety

In 1996, Nestle launched Nestle Orange Juice and encouraged to the response of
consumers Nestle introduced Mango-orange and Mango flavors in 2000. So the journey
of product line started from there. Nestle Fruita Vitals Premium range is currently
available in Apple, Red Grapes, Kinnow, Guava, Chaunsa and Pineapple. While the
Super Premium range is available in Red Anaar that is now renamed as Pomegranate
offers the perfect blend of super fruit. Nestle Fruita Vitals announced the launch of its
Exotic Mixes Range through two new flavors; Mint Margarita & Pina Colada. Presently,
Nestle Fruita Vitals is introducing a royal treat for real mango lovers by combining the
Anwar Ratol, Langra and Dusehri into “Royal Mangoes”.

 Quality

Nestle Fruita Vitals because of good quality, helps Nestle to capture a great customer
value. Fruita Vitals juices of Nestle have refined quality, good taste, ready to drink and
less volume. The Nestle quality policy that applies across the complete Nestle Group and
which is completed by unit- specific Quality Policies is achieved through the
implementation of the Nestle Quality Management System (NQMS). They ensure full
alignment of NQMS and ISO Quality standards.

 Packaging

The packaging of Nestle Fruita Vitals is crucial to prevent nectar waste, guarantee high
quality standards and inform customers about the product quality. Nestle after simple
packaging in the beginning, re-launched Nestle Fruita Vitals in premium Prisma
Packaging format. This was for the first time the new attractive packaging was being

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Marketing Plan of Nestle Fruita Vitals

launched in Pakistan. 200 ml juice for individuals and 1000 ml as family pack. Nestle
recently launched its Fruita Vitals in PET (polyethylene terephthalate) Bottles of 1000ml,
a clear departure from the previous carton packaging. And this packaging is reportedly
100 % recyclable. The packaging as usual is attractive and eye catching with the blend
and color of natural fruits extracts present on the box and bottle.

 Services and Brand Name

The appreciable factor of Nestle Fruita Vitals is the quality of maintenance of juices in
the boxes and bottles is up to mark and they are hardly any complaints about Nestle Fruita
Vitals nectars in the market. This is the major achievement for a company which majorly
relies on its food and beverages.

Price

Currently, Nestle nectars are available in ten flavors and two sizes in the market. One is 1000
ml and other is 200 ml. 100 % clear juices, the prices are based on the cost of ingredients as
well as other operational costs like processing, weighting packaging and logistics. Nestle
Fruita Vitals contain maximum profit margins other than their competitors. So the price
structure is

- The bottle of 1000 ml costs Rs. 175.00

- The pack of 200 ml costs Rs. 30.00

Place

 Distribution Channel

Nestle Fruita Vitals follow the FMCG strategy of distribution that involves breaking the
bulk. The typical distribution strategy of Nestle Fruita Vitals is as follow:

I. Manufacturer  Carriage and Forwarding Agent  Distributor 

Retailer  Consumer
II. Manufacturer  Bulk Buyer  Consumer
 Coverage

Nestle Fruita Vitals has one of the most advanced distribution system in the world. In
Pakistan, if you go to any general store no matter how remotely it is located, more likely

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you would find nestle nectars there. This is because Nestle utilizes its expertise in
ensuring reliable distribution channels that transport its products so far and wide
throughout the country.

 Inventory

Each item of Nestle Fruita Vitals comes with a unique ID that serves as serial number of
that product and amazingly Nestle has complete track of each item of its each
brand/product. Almost 100 % of Nestle products are sold in markets and retail outlets.
There are hardly any secondary methodologies of selling opted by Nestle within the
premises of Pakistan.

Promotion

 Modes of Promotion

Below the line includes following mediums of promotion that are normally deployed by
Nestle for Nestle Fruita Vitals:

 Electronic Media Advertising: TVC, Social media, Radio and Internet.

 Print Media: Newspaper and Magazines.
 Direct Marketing: Emails, Fax, Online Computer Services, Sales Personnel, Retailer,
Brochures through internet or other means rather than traditional media.
 Outdoor Advertising: E-boards, Painted Billboards, MMT, Vinyl Sheets and Posters.
 Through Transit: Bus and Taxicab advertising, Bus Terminals Posters, Displays at
Airports.

Financial Consideration

Financial Consideration of Nestle Fruita Vitals from years of 2017and 2018 is given below:

In Millions of CHF

Years 2017 2018

Sales 7500 8125
Invested Capital 2641 3053
Return on Investment 4859 5072

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 Marketing Plan of Nestle Fruita Vitals

As, the Revenue Growth Rate of Nestle Fruita Vitals is increasing every year so in the year
2018 Return on Investment (ROI) of Nestle Fruita Vitals was 5072 (in Millions of CHF).

Return on Investment

Invested Capital

Sales

0 1000 2000 3000 4000 5000 6000 7000 8000 9000

2018 2017

AUDIT TOOL USED

Porters Five Forces Model

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Marketing Plan of Nestle Fruita Vitals

Rivalry Among Existing Competitors (High)

The big factor determining the strength of rivalry is how actively and aggressively are rivals
employing the various weapons of competition in jockeying for a stronger market position
and seeking bigger sales. In the market rival create a great threat. Many companies introduce
juices in market, there is also great threat for establish company. Nestle juices also face lot of
competitor rivalry. Some carbonated company introduces juices in market, it also create
threat for Nestle juices. The main competitors of Nestle juices in the market are Shezan,
Haleeb and Slice.

Nestle Fruita Vitals operates in a juice industry that faces a strong force of competition.
Nestle Fruita Vitals has been an all-time favorite household name; however, these other
competitive brands pose a problem. In striving to develop their brand and a place in the
homes of consumers, competitors have adopted similar trends as Nestle Fruita Vitals has by
promoting healthier lifestyles with a wide product range made from real juices and less sugar.
Their product prices are also competitive in that they offer same quantity for equal or lesser
value. In trying to have their fair share of the market, competitors spend large amounts on
marketing and investment especially when launching their new products. Competitive rivalry
is high for Nestle Fruita Vitals as all players have to work hard, striving to maintain their
share of the market. Competition is violent in the juice and beverage industry and this is a
high point for customers whereby they will continuously enjoy improving product qualities.

Bargaining Power of Buyers (Low)

In the field of juices customer has a low bargaining power because they produce a single unit
and have not in that situation that they can negotiate with seller on price matter directly. But
indirectly they can influence the companies regarding prices of different produts.

Customers have in their hands a large quantity of bargaining power in Nestle Fruita Vitals
brand. Their utilization of this power gives them a strong force. These buyers have a variety
of choices ranging from countless other juice brands offered by competitors and substitutes.
Nestle Fruita Vitals has made it their business to understand this power and become aware of
their customers ever changing needs in their efforts to better satisfy them. Reflective of the
health conscious/ healthier lifestyle of customers, Nestle Fruita Vitals has integrated health
and wellness programs that are being used with the introduction of healthier choices of their
products with the same great taste and maintained quality. Nestle Fruita Vitals continues to

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rely upon brand loyalty of customers and must serve them with the same great quality
products they have grown to love.

Bargaining Power of Suppliers (Low)

Suppliers are very important to a company and their bargaining power must be one to
consider. Suppliers have great bargaining power if the company cannot produce its raw
materials or other ingredients. Suppliers have weak bargaining power, if in the market many
suppliers and demand of raw material is low. Nestle has a wide range of globally and has a
mammoth buying power, purchasing in massive quantities which is an ideal buyer for any
supplier. Nestle is focused on strong and sturdy business relations to ensure quality is on-
going. It has produced a Nestle Suppliers Code which is a mandatory policy for all its
suppliers defining the non-negotiable minimum standards that all suppliers must meet,
respect and adhere to when conducting business with Nestle. The suppliers of the ingredients
for Nestle Fruita Vitals brand juices provide the raw materials such as fresh fruits and are
helpfully guided by Nestle on how to work more proficiently to decrease redundant expenses.
They care about their supplies which reaps the rewards of quality products. Suppliers never
interfere with or attempt to bargain or influence prices. Nestle has long term relation with
many of its suppliers therefore ensuring quality. Suppliers have a weak force in terms of their
bargaining power.

Threat of Substitute Product or Services (High)

The force of substitutes for Nestle Fruita Vitals is a strong one. Other brands pose to be a
healthier choice. Nestle Fruita Vitals had to work hard to maintain its place in the market.
The sale of the substitutes and their convenience for consumption as being ready to drink, has
caused their sales to increase among the consumers who opt for a healthier lifestyle. In an
attempt to decrease sugar consumption, water has also been seen as a substitute beverage
being the preference over juice drinks. Every kind of product has a substitute and Fruita
Vitals being a juice can be easily substituted. Their counteract measure has been to becoming

more committed to health and wellness and has within its wide range of juice choices, one
that caters to the special needs of its customers. From diabetic choices, to less sugar, more
vitamins, real fruit juice and even convenient serving sizes. The threat of substitutes is a real
one for this brand.

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Marketing Plan of Nestle Fruita Vitals

Threat of New Entrants (High)

New entry can raise the threat of competition. In juices market there is great threat of new
entry. In last few years many new juices enter in the market. There is no major barrier for
local juices to enter in market. Nestle Fruita Vitals has been the leading household juice
brand for many years. There has however been an influx of new juice choices on the market,
ranging from locally produced juices such as Fresh juice and Bare fruit to brands already
established launching new juices. These juices also cost just as much or less than Nestle
Fruita Vitals. This brand has developed a strong name in the market but this market is also
one that is big and viable. New entrants have found their place in some consumer’s homes as
being the juice of choice, though there market share can by no means cross that of Nestle
Fruita Vitals. They are striving for their share of the market by improving productivity and
marketing strategies. Being a household choice for many years it has posed to be a challenge
for new entrants to work over Nestle Fruita Vitals juices in terms of quality. Nestle Fruita
Vitals being an existing player for ages, holds a large market share, brand loyalty as well as
experience in understanding the customer’s needs. They also have maintained strong
distribution networks. Nestle Fruita Vitals has a level of protection against new entrants as it
is an already traditional brand. It will be difficult for a new entrant to directly compete
against an already strong brand within the industry , therefore the new entrants have a
moderate force in the market.

BCG Growth-Share Matrix

The BCG matrix – also known as the Boston or growth share matrix – provides a framework
for analyzing products according to growth and market share. It classifies business portfolio
into four categories based on industry attractiveness (growth rate of that industry) and
competitive position (relative market share).

One of the dimensions used to evaluate business portfolio is relative market share. Higher
corporate’s market share results in higher cash returns. This is because a firm that produces
more, benefits from higher economies of scale and experience curve, which results in higher
profits.

High market growth rate means higher earnings and sometimes profits but it also consumes
lots of cash, which is used as investment to stimulate further growth.

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Marketing Plan of Nestle Fruita Vitals

There are four quadrants into which firms’ brands are classified:

 Stars
 Cash cows
 Question marks
 Dogs

So, following BCG growth matrix prepared for current Nestle “Fruita Vitals” market share
and market growth rate.

As following are the main flavors of Fruita Vitals

 Chaunsa
 Red Grapes
 Apple
 Kinnow
 Pineapple
 Guava
 Peach
 Red anar

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Marketing Plan of Nestle Fruita Vitals

 Mint Margarita
 Pina Colada
 Royal Mangoes

Stars
Nestle Fruita Vitals Flavors (Chaunsa, Red grape, Apple, Red Annar) generates large
amounts of cash because of their strong relative market share but also consume large amount
of cash because of their high growth rate., therefore the cash in each direction approximately
nets out. If these flavors can maintain its large market share, then these will become a cash
cow when the market growth rate declines.
Cash Cows
Nestle Fruita Vitals Flavors (Pineapple, Peach) are the leaders in a mature market and
generates more cash than they consume. These flavors have a high market share but low
growth prospects.
Question Mark
Nestle Fruita Vitals Flavors (Royal Mangoes, Mint Margarita, Pina Colada) are growing
rapidly and thus consume large amounts of cash, but because they have low market shares
they do not generate much cash. The result is a large net cash consumption. These flavors are

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Marketing Plan of Nestle Fruita Vitals

the “Problem Child” for Nestle Fruita Vitals. These flavors have the potential to gain market
share and become a star, and eventually a cash flow when the market growth slows.
Dogs
Nestle Fruita Vitals Flavors(Kinnow, Guava) have low market share and a low growth rate
and thus neither generates nor consume a large amount of cash. These flavors are the cash
traps for Nestle Fruita Vitals.

PEST Analysis

Political or Legal Forces

 Taxation Law

If government imposes heavy taxes on the industry then it badly effects the industry
growth. The taxes impose is from government side and it varies from industry to
industry. Nestle Juices have no tax except sales tax.

 Environmental Protection Laws

They do concern for environment and contribute more and more for the betterment of
environment.

 Foreign Trade Regulations

Foreign trade regulation does not affect the overall policy and the working of the
“Nestle Fruita Vitals” because it operate nationally not internationally.

 Political Instability

The government stability also plays a great role for Nestle Fruita Vitals growth. In
Pakistan government face lot of difficulty from the side of terrorism and also its activity that badly
effect environment of the country which is totally very upset.

Economic Forces

 Inflation Rate

Now in Pakistan inflation rate is almost 8.21% so if increase in inflation rate then
increase in prices of Nestle Fruita Vitals juices.

 Economic Growth Rate

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Economy growth rate is 5.8%(FY2018).

Social Factor

Nestle Fruita Vitals is looking at a sizeable population. Also, as Pakistan is a high context
culture(Lee's Global Reputation Management Blog)meaning that social events and
familiarity and intimacy among individuals is preferred. Nestle Fruita Vitals is such a
product which is consumed at such social events which foster closeness and celebration.
Also, Nestle in Pakistan is a big corporate social responsibility player and many
projects and programs by Nestle are targeting social uplift in Pakistan.

 Health consciousness

Today people are more health conscious so Nestle Fruita Vitals Juices by identifying
this need of the people they are also producing health conscious juices with more
vitamins.

 Demographic Trend

In Pakistan the population growth rate is 2.63% in 2018-2019 and total population is
207,774,520. So, it affects the production of Fruita Vitals.

 Environmental Concerns

About the environmental concerns of Nestle Fruita Vitals Juices is good health.

 Life Style Changes

Nestle Fruita Vitals consider quality life changes and take advantages of accordingly
so that customer can convinced as well as it plays a vital role to attain & retain the
customer. Consumer adopts the trend of changing environment because of
modern facility as well as globalization they are aware about each and every thing
happening all around them.

Technological Forces

 New Products

Nestle Fruita Vitals focusing concentric and conglomerate diversification

because in present era it is not possible for any organization to exist in market for long

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run by providing just one product. So Fruita Vitals Juices are diversifying according
to changing demand of customers and trends.

 Product Innovation

Product innovation is becoming more necessary for the organization because

of globalization people are becoming aware about the changes being taken place
around them so in order tactical the situation Fruita Vitals is focusing on product
innovation by introducing new flavor of juices with the passage of time NESTLE
FRUITA VITALS JUICES use new tetra packing like easy open cork of pack.

 Productivity Improvement Through Automation

Automation don’t matter a lot but to some extent it contribute towards productivity
and improvement.

 New Communication Technology

All the modern as well as traditional ways of communication are being

adopted by Nestle Fruita Vitals including own emails, letters, faxes and monthly visit
in different offices of Nestle Fruita Vitals for better communication among
supplier, distributor and customers.

SWOT Analysis

SWOT analysis is a framework used to evaluate a company's competitive position and to

develop strategic planning. SWOT stands for Strengths, Weaknesses, Opportunities and
Threats. SWOT analysis assesses internal and external factors, as well as current and future
potential. Using internal and external data, a SWOT analysis can tell a company where it
needs to improve internally, as well as help develop strategic plans.

Strengths

 Nestle enjoyed market leadership position in the juices category. Nestle Fruita Vitals
strengths are the strong brand equity of the parent company Nestle, its perceived
quality, image among the customers in terms of better taste and in terms of being
better than the local brands in Pakistan (Cash Cow-BCG: Page #15 ).
 Nestle Fruita Vital has a great image in the mind of people because of the following
reasons (Pest Analysis: Page # 16)
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a) Target Health conscious people b) Position new product for long-term

relationship

c) Differentiated because low fat d) High nutritional Value

 Apart from great taste, Nestle Fruita Vitals entire range is now Calorie Smart which
means less than 100 calories per serving making it perfect for a healthy lifestyle. That
means consumers can enjoy the health benefits of the finest fruits without
compromising on the taste.(Porter Five Forces Model: Page no 11 )
 There is no chemical used in the preservation of fruit pulp. It is just frozen. Where
other competitors use preservative, Nestlé uses stabilizer which is far less harmful
than preservative. There is a difference between preservatives and stabilizers.
According to Codex “Preservative” is a food additive, which prolongs the shelf-life of
a food by protecting against deterioration, caused by microorganisms. “Stabilizer” is a
food additive, which makes it possible to maintain a uniform dispersion of two or
more components; that means stabilizer helps in maintaining physical form of food
emulsions, colloidal and foam formations (Cash Cow-BCG: Page no 15 ).
 Fruita Vitals juices are packed in Tetra packets; which is completely safe to use
because Tetra Packaging is a unique seven layer packaging that protects FRUITA
VITALS from air, light, bacteria & all other environmental factors.(Cash Cow-BCG:
Page no 15).
 Nestle Fruita Vitals always provide pure, Fresh & healthy juice which is fit for human
body. .(Porter Five Forces Model: Page no 11 )
 There is a difference in percentage of fruit content and quantity of added sugar in
FRUITA VITALS. It has more fruit pulp than other juices. That is why it is called
Nectars not Juice. Nectars contain 25-50% pure fruit juice with a little water and
added sugar. (Cash Cow-BCG: Page no 15 ).
 Nestle juices contain maximum profit margin other than their competitors. Nestle
Fruita Vitals charge a premium price from their customers (Porter Five Forces Model:
Page no 11 ).
 Nestle has a very high spending on promotion efforts and communications and enlist
big celebrity names like the actor Shaan, Shahid and the singer Ali Zafar (Cash
Cow-BCG: Page no 14 ).

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Marketing Plan of Nestle Fruita Vitals

 Nestle juices provide superior value to their customer who they promised through
advertising.so the customers are loyal the nestle brand (Porter Five Forces Model:
Page no 11 )
 Nestle Fruita Vital has a Strong financial position. Cash Cow-BCG: Page no 14).
 Nestle Fruita Vitals has efficient and strong distribution channel within Pakistan
(Cash Cow-BCG: Page no 14 ).
 Research and Development department keeps Nestle in continuous knowledge about
itself and competitors. it has a competitive advantage because many local juices have
no Research & Development department. It also entails that Nestle is at the forefront
of discovering new food and beverage ingredients and trends. (Cash Cow-BCG: Page
no 14 ).
 Nestle Fruita Vitals is currently available in a wide range of Varieties. The Company
has been continuously introducing new products, thus expanding its product offerings
(Pest Analysis: Page no 16).
 Nestle juices has a highest market share i.e. 60% in juices market. (Cash Cow-BCG:
Page no 14).
 Nestle Fruita Vital has a high ethical value and standard business practice. (Cash
Cow-BCG: Page no 14 ).

Weakness

 Nestle Fruita Vitals weakness is its dependency on the suppliers without which it
cannot have the raw material, both fruits and the packaging. This dependency
erodes the bargaining power of Nestle.(Porter Five Forces Model: Page no 11 ).
 Another weakness is that at the end of the year 2016 an issue surfaced that a pack of
juice was found with mold in it. This brought into question the strength of the supply
chain of Nestle to deliver faultless products and also compromised its image of health,
wellness and nutrition. The analysis showed that the problem was at the distributor’s
end who kept an expired product on the shelf. (Dogs-BCG: Page no 14).
 Nestle Fruita Vitals storage ability is low because it has a low shelf life than the
competitors. Transit time is almost 2 months, so actual shelf life will be maximum 4
months. (Dogs-BCG: Page no 14).
 Nestle Fruita Vitals has a high maintenance and production cost as it is imported from
Pakistan (Porter Five Forces Model: Page no 12).

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Marketing Plan of Nestle Fruita Vitals

 The target market of Nestle Fruita Vitals is upper middle and high class because lower
middle and poor class cannot afford to buy Nestle Fruita Vitals due to its premium
price compare to other companies. (Dogs-BCG: Page no 14).

Opportunities

 There are countless opportunities for Nestle Fruita Vitals as it is a leadership brand its
high esteem among consumers shows that consumers wait for the brand to launch new
flavors and exciting combinations.(Porter Five Forces Model: Page no 11 )
 Another opportunity also lies in varying their packaging size; doing so has the
potential to strengthen their market leadership position as no other juice brand
currently has launched new packaging variants and a first mover advantage can be
had.(Pest Analysis: Page no 16 )
 Another opportunity that Nestle can cash on is to launch a healthier, low sugar, high
juice content (more than 50 percent) to a specific target segment of health conscious
consumers.(Porter Five Forces Model: Page no 11 ).
 Limited options in locally produced real fruit juices. Local competitors have poor
products.(Porter Five Forces Model: Page no 12)
 Available in many flavors so in future if one flavor is not doing good the other flavor
can save the position. (Star-BCG: Page no 14).
 Government support foreign investors to invest in Pakistan. (Star-BCG: Page no 14 ).
 Scientifically gas is a great opportunity for nestle company. Because in coming future
Nestle take the benefits of uses the scientifically gas. (Star-BCG: Page no 14).
 Consumers in urban areas drink functional drinks on a regular basis as they
increasingly adopt Western lifestyles, especially the younger generation which is
hugely influenced by the Western media. Younger consumers tend to follow Western
eating and drinking habits. There was an increase in demand for functional drinks
over the review period. (Star-BCG: Page no 14 ).
 Increasing health and hygiene awareness among Pakistanis has greatly increased sales
of fruit/vegetable juice products. Both the government and the media have started
health awareness campaigns to make Pakistanis realizes that consumption of fruit/
juices is as essential as eating food. Fruit/ juices are doing very well in both urban and
rural areas. (Star-BCG: Page no 14 ).

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Marketing Plan of Nestle Fruita Vitals

 Non-Carbonated Beverage (Ready to Drink Juices) are growing rapidly. Consumers

prefer non-carbonated beverage over carbonated ones. (Porter Five Forces Model:
Page no 12)

Threats

 There is competition from a number of players in the juice category that can bring the
market share down.(Porter Five Forces Model:Page no 12)
 They face problem if government employ taxes on them which force them to raise the
price of their product. (Pest Analysis: Page no 16 )
 There are no many entry barriers so a large numbers of local juices enter in juices
market.(Porter Five Forces Model: Page no 12)
 Increase labor cost also a threat for Nestle Fruita Vitals. (Question Mark-BCG: Page
no 14 ).
 Inflation is getting higher and higher so the purchasing power of the people is
decreasing day by day .(Porter Five Forces Model: Page no 12)
 Also, the weakness found in the supply chain that led to a faulty product if not
rectified or not supervised properly can lead to an erosion of the brand image.
(Question Mark-BCG: Page no 14 ).
 Another threat is that in future there can be a shift towards more healthy pure fruit
juices without any preservatives, artificial flavors or sugar.(Porter Five Forces
Model: Page no 12 )
 Price volatility in competition (Question Mark-BCG: Page no 14 ).
 There is a chance of competitors’ unethical practice over new Tariff. (Question Mark-
BCG: Page no 14 ).
 Rising price of raw material is the threat for Nestle Fruita Vitals. .(Porter Five Forces
Model: Page no 12 )
 Consumer trends are also changing day by day so this is also a threat for Nestle Fruita
Vitals. (Question Mark-BCG: Page no 14 ).
 The political situation of a country affects its economic setting. The economic
environment affects the business performance, so political instability is the threat for
Nestle Fruita Vitals. (Pest Analysis: Page no 16)

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Marketing Plan of Nestle Fruita Vitals

MARKETING OBJECTIVES

SMART Objectives

The objectives for Nestle Fruita Vitals are:

 To maintain its market leadership position in Lahore by sustaining 60% market share in
the juices category for upcoming 3 years.
 To introduce three new flavors to gain 20% market share in upcoming 1 year.
 To promote new flavors among youth in different festivals of institutes like (LUMS, LSE,
UCP, UET, UMT) for 6 months.

ANSOFF Matrix

Ansoff Matrix model consist of:

 Market Penetration
 Product Development
 Market Development
 Diversification

So, by considering our objective strategies we are using product development strategy in
which we are going to launch new flavors or developing new product in our existing market.
So, we are going to use Product Development Strategy.

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Marketing Plan of Nestle Fruita Vitals

We are going to launch three refreshing Fruita Vitals flavors in summer Season.

So, the flavors we are going to launch are:

 Cocktail
 Falsa
 Strawberry

COCKTAIL

In cocktail flavor we are going to use the combination of three different flavors in one
packaging. Flavors will be (Pineapple, Chaunsa and Peach). In summer we are going to
launch this flavor because this flavor will give refreshing excitement to their consumers.

Size

It will be available in (200ml and 1000ml) sizes.

Packaging

For giving summer refreshing feelings to consumers we use tempting and funky refreshing
colors that attracts and fulfill the needs.

FALSA

Other flavor we are going to launch in summer season is Falsa. This flavor attracts falsa lover
consumers. It is all pure with no preservatives. It also gives refreshing feelings to their
consumers.

Size

It will be available in (200ml and 1000ml) sizes.

Packaging

We display falsa and glass full of falsa juice on

a pack that attract customers to drink and quench thirst. The display color would be purple.

STRAWBERRY

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Marketing Plan of Nestle Fruita Vitals

This would be our other refreshing flavor that we going to launch in Summer Season This
flavor enlighten or attracts strawberry lovers’ customers. This flavor also gives refreshing and
exciting feeling.

Size

It will be available in (200ml and 1000ml) sizes.

Packaging

We display strawberry and glass full of juice on a pack that attract customers to drink and
quench thirst. We use pinkish color packaging.

MARKETING STRATEGY

Mission

Its mission of “Good Taste, Good Life” is to provide consumers with the best tasting, most
nutritious choices in a wide range of flavors for any time of day and for all stages of life, and
managing the business in a way that creates value for the company at the same time than for
society.

Target Market

Market segmentation reveals the firm’s market opportunities. Then the firm sort market
targeting by evaluating the many types market segments and deciding which and in which
quantity segments it will target.

We are going to use concentrated marketing mix in which we will focus on our specific
market segment. As we are going to introduce three new flavours specifically for the youth so
we will use marketing strategies especially for our specific target market.

Our target market will be:

Young People

We are going to target the youth of the city Lahore. We are launching three new flavours
specifically for our young generation because they are more innovators and adventurous and

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Marketing Plan of Nestle Fruita Vitals

they try and accept new things more readily as compared to people of other age groups. So
mainly in our marketing campaigns, we will focus them.

Health Conscious People

Nestle Fruita Vitals mainly targets the health conscious people by creating its healthy and
nutritious image in customer’s mind. We are going to target health conscious people, so in
this way people who are more concerned about their health they don’t even hesitate to pay
extra money for getting natural fruit nectar juices with minimum additives and low calories.

Middle, Upper Middle and High Class

As the prices of Nestle Fruita Vitals are higher than other competitors, so we are targeting
mainly middle, upper middle and high class. As for lower middle class or other classes,
Nestle have other juice brand named as Nesfruita. But for Nestle Fruita Vitals we are going to
charge premium price mainly focusing on middle, upper middle and high class.

Differentiation

The process of distinguishing a product or service from others, to make it more attractive to a
particular target market. This involves differentiating it from competitors' products as well as
a firm's own products.

So, Nestle Fruita Vitals differentiate its products on the basis of following attributes:

Product Differentiation

Nestle brings a many of product for target customers. Real taste and pulp are not present in
the competitors’ juices. It contains minerals, vitamins and less calories that differ the product
from others. They use tetra Recart restorable carton in juice packaging. The easy to open
carton is more convenient and differentiate the tetra packaging juices as a premium product.

Channel Differentiation

Nestle Fruita Vitals reach their products to the customers through their experienced market
salesman and transportation. So that their products are much easily available to their
customers.

Image Differentiation

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Marketing Plan of Nestle Fruita Vitals

Nestle’s logo and Nestle Fruita Vitals’ logo are totally different from others competitors that
are greatly choices by its users. For that way customer easily choose them in the market
which is another effective benefits for Nestle products. The combination of red and black
logo shows the uniqueness of the product. The slogan and taglines are distinguished from
competitors. “Sip positive” and “the new shape of positivity”.

People Differentiation

The company has a large number of manpower’s that are highly educated and trained. In
Sheikhupura plant, 400 employees are running this business successfully for a long time. The
trained staff is the competitive edge of the industry.

Service Differentiation

Another advantage for this company is better service for its respective users from its
competitors. They provide 24×7 hot line service. High quality checking is providing for its
customers. Its marketing department and public relation department are working for finding
out customer’s new needs and response toward their nestle products.

Positioning

Positioning refers to the place that a brand occupies in the mind of targeted customers and
how it distinguished from the products of the competitors. . Nestle is one of the largest food
processing company. Their products and quality mainly includes on their experience and
efficiency. Nestle Fruita Vitals provides quality juices and nectars that leads to good business
growth and good development. By creating product, service, channel, people and image
differentiation Fruita Vitals arrives the consumer touch point more easily, effectively &
efficiently in comparing with other competitors in the highly competitive market. Nestle
Fruita Vitals has efficiently created an image in the mind of customers related to the nectar
and the purity. Nestle Fruita Vitals has done well to adding its customers loyalty operating as
a market competitor’s in its juice industry.

Nestle Fruita Vitals as the product of Nestle was expected to create the image in the
consumer perception and they really did it. It is certain quality, taste, appearance that
consumers believe to prefer instead of competitor’s product.

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Marketing Plan of Nestle Fruita Vitals

There are a few features on which brand positioning takes place:

Brand Attributes

(What the brand delivers through features and benefits to consumers.)

 Healthy and Nutritional

 No contamination
 Price skimming
 Every nook and crann

Consumer Expectations

(What consumers expect to receive from the brand.)

 Reliable and safe nectar

 High quality product
 100 % pure nectar
 Launch more juices

Competitor Attributes

(What the other brands in the market offer through features and benefits to consumers.)

 Pure Nectar
 Market follower
 Major retail outlets and departmental store

Consumer Perceptions

(The perceived quality and value of your brand in consumer’s minds.)

 Natural fruit pulp

 Refreshing drink
 Good value for money

Point of Parity

 Same flavors
 Tetra packaging
 Healthy product

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Marketing Plan of Nestle Fruita Vitals

Point of Difference

 100 % pure nectar

 Enhanced nutrition
 Variety of juices
 Calorie smart
 Aseptic PET(‘polyethylene terephthalate) packaging 100 % recyclable

Marketing Mix
Marketing Mix is defined as a set of controllable tactical marketing tools that firm blends to
produce the response it wants in the target market. The marketing mix consists of everything
the firm can do to influence the demand for its products. The many possibilities can be
collected into four groups of variables known as the four P’s that are as follows:

 Product

 Price

 Place

 Promotion

Product

A Product is…

‘anything that is offered to a market for attention, acquisition, use or consumption & that
might satisfy a need or want’

We are going to launch three refreshing flavors of Nestle Fruita Vitals in upcoming years.
Cocktail, Falsa and Strawberry.

As Fruita Vitals known the No.1 nectar juice with no contamination among their competitors.
These three new refreshing flavors will lead Nestle Fruita Vitals to their maturity stage as it
already have.

According to Nestle Fruita Vitals PLC Model:

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Marketing Plan of Nestle Fruita Vitals

The juices are in between the growth and maturity stage by considering the sales of juices and
the time period that the juices being sold in the market.

Pricing

Nestle Fruita Vitals juices are available in different flavors and different sizes in the market
with 100% Nectar. Most common sizes are 200ml and 1000ml. So, the prices of the new
flavors of Nestle Fruita Vitals that we are going to launch will be:

COCKTAIL

 200ml Rs.35.00
 1000ml Rs.160.00

FALSA

 200 ml Rs. 30.00

 1000ml Rs. 155.00

STRAWBERRY

 200 ml Rs. 30.00

 1000ml Rs. 155.00

Place
Place includes company activities that make the product available to target consumers. It is
the very important element of the marketing mix. Place is also known as channel,

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Marketing Plan of Nestle Fruita Vitals

distribution, or intermediary. It is the mechanism though which goods and/or services are
moved from the manufacturer/service provider to the user or consumer.
We are going to launch three refreshing Fruita Vitals flavors in Lahore. In the beginning we
will target only Youth.
Distribution Strategies
We choose the intensive distribution strategy to ensure widespread availability of new
flavors. We will supply these three new flavors in supermarket, hyper market, food stores,
corner shops, café, restaurant, hotels, airports, railway stations, school and college and
university canteens and bus depot on the basis of product demand so that the consumer can
get the product easily.
Warehouses and Distribution Centers
For the storage of juices, we will buy specialized distribution centers and warehouses in
Lahore, Sheikhupura and also hired some warehouses.
Wholesaler and Retailer
We will sell new flavors of Nestle Fruita Vitals directly from its warehouses or distribution
centers to the wholesale corporate customers such as Hyper-stars, Metro Cash & Carry, by
giving them large bulk discounts. We will also sell our juices to mega retailers. We will pay
to use the shelf to store the juices to the retailer for sale to the final consumers. We will place
our juices in the right places and right shelves and make sure they are visible to consumer.
Mode of Transportation
Our mode of transportation will be road transport.
Inventory Management
For the inventory management of raw materials, goods in progress and finished good we will
keep the record in our system of each and every flavor of juice we produced, where it is
currently and how much time it took to reach the final customer.

Promotion

Promotion is any form of communication a business or organization uses to inform, persuade,

or remind people about its products and improve its public image. A promotional mix is an
allocation of resources among five primary elements:

 Advertising. ( Traditional Media and Social Media)

 Public Relations or Publicity. (Celebrity Endorsement)

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Marketing Plan of Nestle Fruita Vitals

 Sales Promotion.
 Direct Marketing.
 Personal Selling.

For the purpose of marketing mix we’ll promote 3 newly launched nectars of Nestle Fruita
Vitals by focusing mainly on advertising via Sponsorship of events, Social Media Marketing,
TVC, Electronic boards and Billboards.

As the target audience is Generation Y and Z that is youth, so promotion would be done
through sponsorship of the coming World Cup, Summer Festivals specifically in leading
universities of the Lahore city e.g. Lahore School of Economics, Lahore University of
Management Sciences, University of Central Punjab and University of Management and
Technology. Adding to this, we’ll sponsor events in Punjab College, Kinnaird College and
Lahore College just to target the youth of colleges.

We’ll also place advertisement on billboards near schools, colleges and universities to cater
the targeted market. We’ll place billboard on main boulevard Iqbal Town, opposite to
University of the Punjab, and near Niazi chowk closer to Government High School. We’ll do
marketing by displaying ads on electronic boards on MM Alam Road. Along with this we
will sponsor the events like, Summer Fest, Daachi ( Arts and Crafts), All Girls Band: Live in
Concert etc.

For Social Media audience, we will capture them by consumer promotion on the search
engine or home page of Nestle and target them by involving them in gifts, prizes and coupons
by sending the maxim number of selfies with the new flavors to the Team of Nestle Fruita
Vitals on the Facebook page.

For TVC, w will play ad of 60 seconds endorsed by Wasim Akram and Fawad Khan on Geo,
ARY and HUM for 2 times in an hour. The ad will be displayed from 7am to 9am in the
morning and 8pm to 11 pm in the night for the period of 6 months. And in the season of
World Cup we’ll do bombardment of advertising on PTV Sports during over break, lunch
break or game break.

Total Budget approximated for the above mentioned promotional activities will be Rs 2.5
crore.

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Marketing Plan of Nestle Fruita Vitals

Channel
Distribution Channel
We adopt the consumer marketing channel where the products from the Manufacturer reaches
the consumer through the wholesalers or retailers. We will use “Two level marketing
channel”. Basically we follow the FMCG strategy of distribution which involves breaking
the bulk.
The typical distribution strategy is as follows
Manufacturer>> Wholesaler>> Retailer>>Consumer

IMPLEMENTATION AND CONTROL

Implementation
Who: People having middle and upper middle class across Pakistan.
Where: Lahore city
When: From year 2019 onwards
How: Through retail outlets and distributor networks.
Control
Estimated Budget: 1 crore
Actual Budget: 3.5 crore
Estimated Profit:1.5 crore
Actual Profit:3.2 crore

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