Table of Contents

Introduction Of Nestle Company………………..…………………………………………………………...2

Vision Statement Of Nestlé………………………………………………………………………………………3

Product Line Phases……………………………………………………………………………………..………….4-10

Marketing Strategies……………………………………………………………………………………….………10

Mission Statement Analysis…………………………………………………………….………………………10

Marketing Mix…………………………………………………………………………..……………………………11

Bcg Matrix…………………………………………………………………………………………………….………..12

Marketing Environment……………………………………………………………….…………………………14

Internal Environment…………………………………………………………………………………………..…14

Micro Environment………………………………………………………………………………….……………..14

Macro Environment………………………………………………………………………………………………..15

Segmentation…………………………………………………………………………………………….…………..16

Product Strategy………………………………………………………………………………….…………………17

Point Of Differentiation……………………………………………………………………….…………………17-18

Product Line Expansion……………………………………………………………………………..……………18

Positioning Map……………………………………………………………………………………………..………18

Product Life Cycle…………………………………………………………………………………………………..19

Packaging……………………………………………………………………………………………………………...19

Labeling……………………………………………………………………………………………………..………….20

Brand Positioning Strategy……………………………………………………………………………….…...20

Pricing Strategy……………………………………………………………………………………………………..22-25

Advertising Strategy…………………………………………………………………………………..………….25-27

New Product Idea………………………………………………………………………………………….………28

Findings And Recommendations……………………………………………………………………………28

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INTRODUCTION OF NESTLE

Nestlé is an international corporation that produces a variety of products including food,

Beverages, and pharmaceuticals that amount to over 8,000 in all (Tomlinson 2000). The

Company was founded in 1867 in Vevey, Switzerland and has facilities worldwide

Market share

 Nestle Pure Life (NPL) share is 78%.

 Pepsi Aqua Fina share is 15%
 Askari Water has share of 2.9%.
 Remaining 4.1 % is for all other competitors

Nestlé Pakistan Limited

Nestlé Pakistan Ltd. is a food processing company, which is registered on Karachi
and Lahore stock exchanges. It established its first production unit in 1988 in Sheikhupura
Pakistan with the name of Nestlé Milk’s pack Limited but its name has been changed and
now it is called Nestlé Pakistan Limited.

Headquartered in Lahore, the Company operates five production facilities. Two of its
factories in Sheikhupura and Kabirwala are multi product factories, while another one at
Karachi is already for production. One factory in Islamabad and two in Karachi produce

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bottled water. Through its effective marketing and a vast sales and distribution network
throughout the country, it ensures that its products are made available to consumers
whenever, wherever and however.

Nestle Pakistan is a subsidiary of Nestle S.A. - a company of Swiss origin Headquartered in

Vevey, Switzerland.

Kabirwala Factory
Nestlé Pakistan acquired the factory in 1990 as a subsidiary and subsequent to its
merger with Nestlé Pakistan in April 1997 it became a fully owned unit of Nestlé Pakistan
Ltd.

A Maggi Noodles plant was installed in 1992, followed by a mil’s powder plant for Nido and
Gloria whose capacity was subsequently increased several times. Then came a new butter line
for producing bulk and cultured butter. A dry milk line was installed for tea whitener powder
(Everyday) and the milk powder plant was modified to produce NIDO enriched with vitamins
and minerals. The Desi ghee plant was relocated form Sheikhupura Factory and its capacity
was doubled.

A National Distributions Center and an Occupational Health Center were established and a
new incinerator was commissioned with a scrap yard for proper water disposal.

Vision Statement of Nestlé

To be a leading, competitive, Nutrition, Health and Wellness Company delivering improved
shareholder value by being a preferred corporate citizen preferred employer preferred
supplier selling preferred products.

Nestlé Pakistan subscribes fully to this vision of being the number one Nutrition, Health, and
Wellness Company in Pakistan. In particular, we envision to;

• Lead a dynamic, passionate and professional workforce – proud of our heritage and positive
about the future.

• Meet the nutrition needs of consumers of all ages – from infancy to old age, from nutrition
to pleasure, through an innovative portfolio of branded food and beverage products of the
highest quality.

• Deliver shareholder value through profitable long-term growth, while continuing to play a
significant and responsible role in the social, economic, and environmental sectors of
Pakistan

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Product Lines
Quality and nutritional value are the essential ingredients in all brands of Nestlé. Millions of
people prefer Nestlé products every day, happy with the addition to their wellness that they
bring. Nestlé is giving its products in 10 different categories of food with 75 brands. These
food categories with product lines are:

Baby food (Cerelac), Beverages (Nescafé liquid, Milo, Buddy, Orange juice, Nestea),
Breakfast cereals, Chocolate and confectionery (Kit Kat), Dairy Products (MilkPak, NIDO,
Everyday), Prepared food (Maggi noodles), Bottled Water (Nestlé Pure Life)

PL 1: Ambient Dairy

 Nestle MilkPak

Milkpak is a trusted brand known throughout the country for its nutritious
wholesome goodness and pure natural taste. To secure a happier and
healthier future for your family, you need the support of a strong partner like Milkpak, now
fortified with extra strength of Iron, Vitamin C and Vitamin A that keeps you and your family
strong! 

 NESVITA

If you are all set for an active and healthy lifestyle, then you need to get
the strength your bones need & the smartness you desire with Nestlé
Nesvita Calcium Plus as it is high in Calcium and low in fat.  With
more Calcium than regular milk, Nestlé Nesvita Calcium Plus locks the
Calcium in your bones making them strong and healthy. This is
because it contains Calci-Lock, a unique combination of Calcium,
Vitamin D and other essential vitamins and minerals. 

Just two glasses of Nestlé Nesvita Calcium Plus milk helps meet 80%
of an adults daily requirement for Calcium intake and that too with less
than 1% fat. 

 NIDO

NIDO 1+ is developed for children aged 1-3 years. It has an advanced recipe that includes
Probiotics (Lactobacillus Protect us), which boosts a child’s body defenses and helps keep

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their tummy healthy. 

NIDO 3+ is developed for children aged 3-5 years. The new recipe consists of
Probiotics (Lactobacillus protect us), a blend of fibers for improved digestion,
and additional nutrients that help the child in developing an active mind and a
healthy body. 

NIDO FORTIFIED is for children between 4 and 12 years of age, who are
growing up in an increasingly competitive environment and require something
extra to ensure success on the playing field and in the classroom. It is enriched with iron, 24
vitamins and minerals that are essential for your child’s growth, which can be tracked by the
10 signs of good nutrition. 

 EVERYDAY

Nestlé Everyday dairy tea whitener, made from pure fresh milk gives you that
perfect rich taste that only specialized milk can, so you can enjoy the same
delicious cup of tea each time!

For your convenience Nestlé Every day is available both in powder and liquid
forms: 1000g pouch, 400g pouch, 175g bag-in-box, 200ml UHT pack.

 MILKPAK CREAM

Its silky creamy texture is ideal with strawberries or mangoes! Some prefer to
give their coffee a swirl for that creamy finishing touch or put a generous dollop
on their naan (round flatbread). 

PL 2: Chilled Dairy

 NESTLE YOGURT

Packed full of delicious nutrition, Nestlé Yogurt Sweet n Tasty is the perfect
healthy snack that matches our rich, local taste and cuisine. Full of pure dairy
goodness, it provides you with all the benefits of milk along with active live
cultures that aid digestion. A source of calcium, Nestlé Yogurt Sweet n Tasty is
hygienically packaged for your family's health and safety.
Available in 200g and 400g cups

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  NESTLE RAITA

Sometimes you need something extra with lunch or dinner and ordinary raita just doesn’t do
the job. That’s where Nestlé Raita comes in. With its unique mouth-watering
taste, guaranteed hygiene and simple convenience, you can indulge your taste
buds with just the right flavor that transforms your meal into a culinary delight.
Hassle-free and ready-to-eat, Nestlé Raita is not only packed full of taste, but is
also a great source of calcium and aids digestion too! It is available in Zeera
(cumin) and Podina (mint) flavors to suit your individual taste. Indulge in taste,
quality and nutrition with Nestlé Raita!

 NESTLE ACTIPLUS

Nestlé Actiplus Yogurt contains Fiber and Probiotics, which, if used regularly, help
keep your digestive system healthy by increasing the Probiotic count in the
intestines. It assists a smooth intestinal transit that makes you feel light and
comfortable and brings you back to your normal, super self!
Available in 400g cup

 NESTLE RIWAYTI MAZA

Whether it be cooking delicious dishes, making mouthwatering lassi or just

satisfying a traditional dessert craving, Nestlé Riwayati Mazaa is the perfect
yogurt to do it all in the kitchen. With taste like a traditional unsweetened yogurt,
it provides your family with the yogurt they need for all purposes. As a result, you
get Aala Mazaa!

PL 3: Beverages

NESTLE FRUITA VITALS

 ORANGE JUICE 

Oranges are in demand not only for their divine juicy flavor but equally
celebrated for their health benefits. They are naturally low in calories, and an
excellent source of Fiber and Vitamin C. Squeezed from the finest handpicked
oranges, 100% pure NESTLÉ FRUITA VITALS Orange Juice has no sugar and

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is a good source of Vitamin C. 

 APPLE NECTAR

Apples have no fat and are cholesterol free. Nestlé Fruit’s Vitals Apple Nectar is made from
the finest Apples and is 100% clear. As irresistible as sin itself – give in to the amber kick of
Nestlé Fruit’s Vitals Apple Nectar. 

 RED GRAPE NECTAR 

Grapes also called the ‘queen of fruits’ are known for their great internal body cleansing
properties. They are a good source of Vitamin C and Potassium that plays an important role
in proper heart functioning by regulating blood pressure and heart beat. 
Relish the full-bodied, smooth flavor of Nestlé Fruita Vitals Red Grape Nectar and let your
taste buds soak in the sensuous richness of Red Grapes. 

 PINEAPPLE NECTAR

Pineapples are good source of Vitamin C, an antioxidant that helps fight against free radicals,
one of the main reasons for aging. 
Made from premium pineapples, Nestlé Fruita Vitals Pineapple Nectar brings you the exotic
taste of pineapples with a refreshing tropical flavor and is a good source of Vitamin C. 

 CHAUNSA NECTAR

Is prepared from the finest quality Chaunsa mangoes that are procured from the best fruit
farms. The 100% rich mango nectar is nutritious, refreshing and wonderfully delicious. It
helps to replenish the lost vigor during workouts and enhances your fitness by providing
fortified energy endowed with dietary fiber, Vitamin A, C & E. 

 GUAVA NECTAR 

A chilled glass of pink Nestlé Fruita Vitals Guava Nectar is not only great tasting but is also
wholesome in antioxidants making it very nutritious. 
Nestlé Fruita Vitals Guava Nectar is rich in Vitamin A, Vitamin B, Vitamin C and Niacin and
due to excessive fiber content it is an effective fat burner. 

 NESTLÉ MANGO DRINK AND NESTLÉ ORANGE MANGO DRINK 

Feel the burst of fruity fun and discover Nestlé Mango and Nestlé Orange Mango fruit drinks
made with the juiciest, sweetest mangoes and sharp oranges. 

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  NESTLÉ PEACH NECTAR

Peaches are a perfect combination of flavour and nutrition. Their natural fruit goodness,
enriched with Vitamin C, protects the body from free radical damage and helps maintain the
immune system. 
Savour the extraordinary flavour of Nestlé Fruita Vitals Peach Nectar, abundant in Vitamin
C. 200ml Nestlé Fruita Vitals Peach Nectar fulfills 33% of your daily Vitamin C requirement.

 MILO

With the new and improved Milo, children have more reasons to be active as it
gives them the energy they need for an active and healthy lifestyle. A specific
balance of Vitamins, Minerals and Antigen –E help optimize the release of energy
from Proteins, Fats and Carbohydrates. Loaded with extra cocoa and rich malt,
MILO has the irresistible chocolaty taste that kids love. So treat your children with
MILO and watch them at their active best! 
Just one glass of MILO with milk provides children with 50% of their daily iron,
calcium, Vitamin B1 and Vitamin C needs. 
For your convenience MILO is available both in powder (200g) and ready-to-drink
(200ml) forms.

 NESCAFE

Serve it hot or icy cold; strong black or milky, the Nescafé experiences are as diverse
and unique as it’s many blends and varieties. Ranging from the morning wake-me-up,
to getting through the day, quiet reflective moments to unwinding, parties to simply
hanging out with your pals, the Nescafé magic goes beyond just a great tasting cup of
coffee; it’s eye opening, thought provoking & stimulating. 

PL 4: Bottled Water

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Nestlé Pure Life, is pure, safe and healthy drinking water for you and your family.
Every bottle of Nestlé Pure Life is produced with the Nestlé Safety System and is carefully
sealed with a proprietary seal. Purity of the highest standards is matched by an optimal
balance of essential minerals, enhancing the health and well-being of your family.
No wonder its Pakistan’s favorite water because more people trust it than any other brand.
For your convenience Nestlé Pure Life is available in non-returnable 0.5 liter, 1.5 liter and 5
liter bottles at retail outlets and Bulk bottles for Home & Office Delivery in 19 & 12 liter (12
liter is available at retail outlets).

PL 5: Culinary & Food

Maggi realizes that mums feel the need of being more fun around their
children; therefore, it gives them a chance to break out from their mum mould.
Now involve your little ones in the kitchen for a supervised activity full of fun
and great learning as they help prepare Maggi Noodles for themselves. Maggi
Noodles are available in four delicious flavors: Chicken, Chatkhara, Masala
and Lemon Chaska.Maggi Noodles brand has introduced two new noodle
variants to delight our consumers who have increasingly been asking for new
and tasty flavor’s: Karara and Bar-B-Q.

PL 6: Baby Food
From birth to 3 years of age, your baby goes through a period of rapid growth
and development. Choosing the best nutrition for your baby can be difficult and
confusing and you always wonder if it’s just right. 
Each stage of your baby’s growth is unique and so are the changing nutritional
requirements. Cerelac infant cereals (6 months onwards) are easy to digest and
grouped in stages according to the changing nutritional needs of the growing
child, with Cerelac providing the right nutrition at each stage. CERELAC is available in three
sizes: 350g & 175g box packaging and a 25g sachet packaging for your convenience.

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PL 7: Breakfast Cereals
Nestlé Koko Krunch is a delicious cereal with a rich chocolate taste that kids
love. Made with the goodness of whole grain, Nestlé Koko Krunch cereal
provides ten essential vitamins and minerals, plus iron and calcium.

PL 8: Confectionary
Just the right sweetness, fresh and minty. That’s Polo, the all-time favorite
mint with the hole. It’s popular around the globe for its just-because
moments! Polo mints are products for all occasions, especially when you
need to freshen your mouth and breath with its cool, lingering
aftertaste. Polo mints come in stick-packs of 9, 21 & 30 gms.

PL 9: Nestle Professional
Whether it is a café, restaurant, office, airport, university, or hospital,
backed with efficient services and quality products Nestlé Professional is
keen to deliver on the expectations of our valued customers. When you
want to significantly improve your out-of-home business, Nestlé
Professional is there to support you. We strive to come up to your
expectations by providing innovative and quality products that consumers
enjoy. Our diversified product portfolio ensures that we meet your varied
needs. Our doorstep delivery saves time and relieves you of the hassles
involved. Nestlé Professional is committed to providing convenient, cost-
effective and reliable out-of-home food and beverage solutions that are just
the right fit for your business.

Marketing Strategy

Mission Statement of Nestlé

Nestlé’s mission, in the words of our founder Henri Nestlé, is to: “...positively influence the
social environment in which we operate as responsible corporate citizens, with due regard for
those environmental standards and societal aspirations which improve quality of life.” –
Henri Nestlé, 1857.

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ANALYSIS

 It is market oriented
 It is meaningful
 Jargon free
 Focus on customer value and preference.

According to these specifications it’s a good mission statement.

Marketing Mix

4 P’s
Marketing strategy include 4 P’s strategy i.e. Product, Price, Place and Promotion
strategies.

 Product is something that is offered to the market. NPL (Nestle Pure Life) product
strategy studies show that they are positioning the product with respect to its attributes
that NPL is safe, pure, refreshing and healthy water. Nestlé also does product line
expansion; recently it has offered a 500 ML bottle of NPL in the market. It’s also
using the company name with its product name i.e. Nestlé Pure Life. NPL round
shape and elegance of the bottle are instantly recognizable. Quality is cornerstone of
NPL success. Nestle people say: “Quality is our more successful product and it is key
to our success today and tomorrow.”

 Price, Nestle has adopted the strategy of non-price competition. It is offering one
price for NPL to all cities of Pakistan. It also keeps the check on distributors to
maintain single price of NPL. It offers trade discounts to its distributors.

 Placement is the distribution of the product to its customers at right time, in right
quantity, at right price and at right place. To ensure this, channel adopted by the
Nestlé for distribution of NPL is as follows: Producer Wholesaler Retailer Consumer
NPL comes under the category of FMCG, so for this the timely supply is very that’s
why Nestlé is following intensive distribution strategy.

 Promotion is the very important and crucial element of marketing strategy as through
it the company establishes its image in the minds of the customers. NPL is promoted
by using different ways of promotion. Advertisement of NPL is done through TV,
radio, billboards, newspapers and magazines. Current advertising slogans are that
NPL is trust, hope and happiness and Behter piyo behter jiyo!. Nestlé also conducts
the tradeshows, concerts, events, sponsorships, and discounts for sales promotion. For

11
 establishing public relations, Nestlé distributes its newsletters, annual reports,
calendars and diaries, lobbying, donation for charitable and civic events. For the
victims of 8th October 2005 earthquake, Nestlé has donated 90 trucks, which were
containing different foods items, and NPL was one of them which is around Rs. 2
Billion. The Nestle organized its teams to distribute products to the affected areas and
all employees contributed from top to bottom (MD himself was involved personally to
distribute products physically)

BCG Matrix

 STARS: The two Sbu’s, Mineral water and Confectioneries fall into this category of
the BCG. These SBU’s have high market share and high industry growth rate. These
Sub’s 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

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 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 it’s imported), Polo Smarties etc. From the above information we
can estimate the sale of NPL and confectioneries until now.

 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 SBU’s 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 is 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.

 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 Rs19639000 in
1999, which rose from Rs19541000 in 1998. This is quite a small increase
considering the rise in the sales of other SBU’s. 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 Rs40620 000 in 1999 from Rs38103 000

13
 in 1998. There has been a small amount of increase; however it is not a lot compared
to other SBU’s. 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. 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 SBU’s, 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.

MARKETING ENVIRONMENT

 Internal environment
 Micro environment
 Macro environment

Internal Environment
In Nestle Internal environment ensures

 Employees are on side with the goals of an organization.

 They have direct impact on product quality, dependability and overall
productivity.
 They are internal market, which impact every department within an organization;
a satisfied internal market will be better able to satisfy external market.

Nestle under the supervision of top management runs the departments of finance, operations,
accounting, sales and marketing, research and development to achieve the goals of
organization.

Micro Environment
In Nestle microenvironment includes:

a) Suppliers:

14
 Suppliers provide the resources like labor and material resources to produce goods and
services. They add to customer overall value delivery system.

o Labor supplies include handling of

 Quantity of labor
 Quality of labor
 Labor strikes
 Labor relations
o Material supplies deals with the
 Quantity of material
 Quality of material
 Price of material
 Stability of material inputs
 Delivery delays

Nestle efficiently handles the quality, quantity, price and stability of both material and labor
supplies. Management maps out the strategies for labor strikes, supply shortages and delays
to avoid increasing the cost of production, which can badly affect sales in short run and
customer satisfaction in long run.

b) Marketing Intermediaries:

It includes the firms that help the company to promote, sell and distribute its goods to final
buyers.

 The physical distribution firms determine the ways to store and ship goods to reach
their destination.
 Marketing service agencies including marketing research firms, advertising agencies
and media firms are also hired to target and promote product to right market.
 Financial intermediaries like banks, insurance companies helps to finance transactions
and insure against risks associated with buying and selling of goods.

Nestle works in coordination with marketing intermediaries to make its product Pure Life
Water available and visible to its valuable customers.

c) Customers:

Nestle deals with the reseller customers who buy the product Pure Life to resell at a
reasonable profit.

Relationship with Dealers\ wholesalers\ retailers:

Nestle make relationship with their Dealers, Retailers, and Wholesalers. The reason of this
relationship is that the consumer can easily buy their products. With this relationship products
are available in all types of market.

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 Nestle is in contact with their Retailers, dealers, wholesalers. Wholesalers are attached with
retailers in this way all process to deliver products are going on.

Macro Environment
Macro environment include political, cultural, Economic factors but as far as Nestle Pure Life
Water is concern none of above factors effect on it. Because it is not at luxury item they are
selling necessities of life which can never be affected.

 Demographic Environment:

Demographic environment including age, sex and income also not effect Nestle Pure Life
water. Because Water is for every gender, every age and for every class.

Market Segmentation

The product that we have chosen for market segmentation is nestle pure life. So all our
discussion will move around it. Market segment consists of a large identifiable group within a
market with similar wants, purchasing power, geographical location, buying attitudes, or
buying habits.

In a total market, there is always some diversity among the buyers. Within same general
market there are group of customers, market segments, with different wants, buying
preferences, product use behavior. In some markets these differences are relatively minor,
and a single marketing mix can satisfy benefits sought by the consumer.

The market segment is based on need based and it’s targeted for everyone who cares for
his/her life and wants to maintain good health. For getting the maximum market share and
respect of the product in the minds of the consumer, as per our observation and market survey
we have concluded that Nestle Pure Life Water’s segmentation is based on two points.

 Geographic Segmentation
 Demographic Segmentation

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Geographic Segmentations
The company has divided its geographic segmentation in several regions. First they have the
segmentation of a whole country and from each provincial capital, they divided it’s areas
into north, east, west, south. So that it could be easy for the company to work efficiently on
its supply chain management.

Demographic Segmentations
Nestle Pure Life isn’t a supreme quality product that only the high class uses. The product is f
or all. There is no age, sex, income and any other kind of limitation on use of the product.
The product is for all. Anyone can use the product as per need

PRODUCT STRATEGY

Positioning

After identifying the segments and then selecting one or more target, the marketers must next
decide what position to pursue.

Nestlé is a food company and its logo is “Good Food, Good Life”. The basic concept, which
it is giving to its customers, is the quality food that if food would be good then life would also
become good i.e. a good health.

The name of mineral bottled water is Nestlé Pure Life. This name itself conveys the message
of the Purity to its customers. Nestlé is has ever been trying to establish an image of purity
and safety about its products. Through advertising campaign same message is being tried to
communicate to the target customers who are health conscious and want to lead a healthy and
happy life.

Point of Differentiation

Competitive Analysis
Nestle is a trusted brand and its products are consider to best and of very high quality world
wide. This is a very important competitive advantage of Nestle Pure Life. . They have
developed a very visible image of their water that it is safe and healthy and is "PURE LIFE"
in true sense. It differentiate product and tells which product stands at which position. It tells
about the differentiation of characteristics and weaknesses of the product with its
competitors. Nestle is a market leader due to different reasons. Its price is high against its
competitors but it matches the quality with its rivals. Nestle is using its brand name to
promotes its products and is very popular as compare to its competitors. It has an attractive
packaging advantage. We can easily find nestle from any retailer shop because their

17
distribution channel is vast. It has maintained its quality from the beginning. Customers are
loyal to them.
Nestle Pure Life has two very strong competitors in the market, which are trying to compete
with Nestlé water brand using innovative strategies and approaches. These are: Aquafina
Water is bottled by the Pepsi Co. The other is Dasani which is bottled by Coca Cola
Company. Pepsi’s Aquafina’s purification of water involves the processes of charcoal
filtration and reverse osmosis. In an effort to have a competitive edge in the market they have
extended their brand to include six different varieties of fruit flavored flat water and two
varieties of carbonated water that are also fruit flavored.
On the other hand, Coca Cola’s Dasani process their water through reverse osmosis process,
but once the contaminated or other materials are removed they add special blend minerals to
their water which gives its characteristic crisp flavor. They have other flavored brands but the
company has limited itself to four different flavors. Coca Cola’s bottle water is present in
different countries with different brand names i.e. Kinsley water etc. Although Nestle Waters
bottles their product in polyethylene terephthalate (PET), this material is 100% recyclable
and does not have BPA (Bi-Sphenol A) which is known to be organic compound used to
make polycarbonate plastic. This has been declared as toxic. In addition their bottles are an
average of 30% lighter. Nestle waters has so many brands that they can accommodate even
the most demanding customer. The line of Nestle Pure Life has flat water, flavored water and
carbonated water. Nestle Pure Life is quite different from the Aquafina and Dasani, and
Nestle has used different brand promotion strategies to promote their product. The quality
provided by Nestle Pure Life has built a strong trust and long lasting relationship between
company and consumers of its products.

Product Line Expansion

Product line expansion is accomplished by increasing the depth (variety of sizes, colors,
models) within the product line.

Nestlé is offering variety of sizes in NPL product line, which are as follows:

Retail line:

1.5 liters

0.5 liters

0.2 liters (Recently launched)

According to our observation and market survey, we have concluded that as such there is not
set demographic techniques to set the specific target market. Because, water is something that
everyone use. Everyone can use any size of bottle that Nestle is offering. There are some
variations that can be made through our observation but not from the company. Nestle Pure
Life comes in four different sizes. These four are targeting different types of people and
lifestyles. The smallest size of Nestle Pure Life Water of 0.5L. This size is being heavily used

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by the consumers in place of soft drink. University and Colleges areas also included in its
target market of this size. But the product is used by everyone in the society also. It is not
only specified people that have been discussed above. Another size of the Nestle Pure Life
Water which is about 1.5L. This size is being used in mostly meetings. You can say that any
kind of organizational meeting or any other social meeting, this product is being used. The
third size of the Nestle Pure Life which is used in mostly houses and offices in the waiting
area. The fully household product and also using in executive rooms in offices with the
dispensers. This Nestle Pure life Water Bottle is also very helpful in many dispensers
available in the market with good options

Product Life Cycle

Product life cycle consists of the aggregate demand over an extended period of time for all
brands comprising a generic product category. Product life cycle is divided in four stages.

During introduction stage, sometimes called the pioneering stage, a product is launched into
the market in a full-scale marketing program.

Growth

In the growth stage, or market-acceptance stage, sales and profits rise, frequently at a rapid
rate. Competitors enter the market, often in large numbers if the profit outlook is particularly
attractive.

Maturity

During first part of the maturity stage, sales continue to increase, but at a decreasing rate.
When sales level off, profits of both producers and middlemen decline. The prime reason is
intense competition.

Decline

In this stage sales volume decreases and losses become greater than the profits. Small
competitors normally quit from the market at this stage and only large and strong remain
moderately successful in decline stage.

NPL is at the growth stage of the product life cycle. Large and small both kinds of
competitors are entering in the market. Sales volume and market share is increasing rapidly.
Last year, the sales of water were 8000 tons and now this figure is raised up to 14000 tons.

Packaging and Design

Packaging can be a source of pleasure and attraction. Nestle company is more focusing on its
packaging and design. Nestle current bottle design is attractive and it encourages consumers

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to buy it. Nestle company is focusing on transportation convenience, making the pack more
comfortable to carry the bottle. In addition to this primary role, packaging fulfills several
complementary functions, including product identification and enhancement, practicality,
consumer information, functionality to suit changing lifestyles, and so on. Given greater
diversity in packaging types and quality, along with the emergence of new consumption
patterns, packaging must also meet new ecological challenges. In this context, Nestlé Waters
continue its efforts to develop more environmentally friendly bottles.

This responsible corporate policy relies on a dual approach: reducing both packaging weight
and energy requirements during the manufacturing process while considerably increasing the
quantity of material recycled.

Labeling

A grade label is used in case of NPL. Grade label identifies the product’s judged quality with
a letter, number, or word. Nestlé is using different phrases words to show the quality of the
product. Like Trust, Happiness, Pure, Pakistan’s favorite water, safe, healthy and Premium
drinking water.

Branding

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A brand is a name and/or mark intended to identify the product of one seller or group of
sellers and differentiate the product from competing products. Branding reduces the price
competition.

Brand Positioning Strategies

The company is positioning its brand at two levels one on product attributes and other on
product benefits.

Product attributes

 The company name combined with a product name:

A Nestlé brand name on a product is a promise to the customer that it is safe to
consume, that it complies with all regulations and that it meets high standards of
quality. The current slogan of NPL is “Behtar piyo behtar jiyo”. The message, which is
conveyed to the customers, is that NPL is Hope, Happiness and Trust. By adopting this
strategy nestles is attracting the customers toward itself.

Product Benefits

Nestle id also targeting its customers by conveying them the benefits of drinking
water daily. Like;

 Best Thirst Quencher!

Make sure you drink plenty of water before, during and after physical activity. Drink before you feel
thirsty and drink cool water as it helps lower body temperature. Always carry a bottle full of pure,
safe water with you

 Drink to Health

Pure, safe water is essential to good health. Water helps maintain your energy, vitality and
prevents fatigue. Make sure your children drink plenty of pure, safe water every day.

 Radiant and Clear

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Water is the ultimate beauty tool for radiant and clear complexion. It helps flush away
impurities that cause skin problems. Your skin needs water for elasticity. Drink 6-8 glasses of
water to prevent your skin for becoming dry and prone to wrinkles.

 Cool Down

Remember, only pure, safe water refreshes you best. Caffeinated and sweetened drinks are
not the answer to thirst. These beverages act as diuretics, causing the body to lose water and
contribute to dehydration

 You are what you drink

Drink a glass of water20 minutes before your meals and you will not eat as much. Or, when
you feel tired, or have a craving for sweets, a glass of water will do the trick. This is a simple,
healthy and effective way to lose those extra pounds.

Pricing Strategy
Price

“Price is the amount of money and/or other items with utility needed to acquire a product.
and utility is an attribute with potential to satisfy the wants.”

A product price influences wages, rent, interests, and profits. Some prospective customers are
interested in low prices, where as another segment is more concerned with other factors, such
as service, quality, value, and brand image. Consumer’s perception of quality may be
influenced not just by price but also by such factors as store reputation and advertising.
Pricing objectives may be:

Profit- oriented

 To achieve a target return

 To maximize profit
 Sales-oriented
 To stabilize prices
 To maintain or increase market share

Status quo-oriented

 To stabilize the prices

 To meet competition

In developing a marketing program, management has to decide whether to compete primarily

on the basis of price or the non-price elements of the marketing mix.

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Nestlé has adopted following for setting the pricing of NPL:

Non-price Competition

In Price strategy, Nestle has adopted the strategy of non-price competition. It is offering one
price for NPL to all cities of Pakistan. It also keeps the check on distributors to maintain
single price of NPL. It offers trade discounts to its distributors.

Nestlé is trying to maintain stable prices of NPL and attempt to improve its market positions
by emphasizing other aspects of their marketing programs. Of course, competitors’ prices still
must be taken into considerations, and price changes will occur over time. Nevertheless, the
emphasis of Nestlé is on something other than price. To maintain this non-price competition
Nestlé is developing distinctive, hopefully unique, products and to create a novel, appealing
promotional program. In addition, it emphasizes the variety and quality of the NPL, which
they are offering to customers.

PRICING STRATEGIES

 Cost based pricing

 Customer Value Based Pricing

Cost based pricing

A pricing method in which the selling price is established by adding a markup to total
variable costs. The expectation is that the markup will contribute to meeting all or a part of
fixed costs, and generate some level of profit. Variable cost-plus pricing is especially useful
in competitive scenarios such as contract bidding, but is not suitable in situations where fixed
costs are a major component of total costs.

Nestle is not using cost based pricing strategy. Because nestle first assess the customer needs
and value perception then set the target price to match customer perceived value and then
determine costs that can be incurred and at the end design the product to deliver desired value
at target price.

Customer Value Based Pricing

The setting of a product or service's price, based on the benefits it provides to consumers. By
contrast, cost-plus pricing is based on the amount of money it takes to produce the product.
Companies that offer unique or highly valuable features or services are better positioned to
take advantage of value-based pricing, than companies whose products are services are
relatively indistinguishable from those of their competitors.

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Customer value base pricing contain these pricing strategies

Good value pricing

Good value pricing is "offering just the right combination of quality and good service at a fair
price."

It further contain

 Everyday low pricing

 High low pricing

Everyday low pricing

Everyday low price (EDLP) is a pricing strategy promising consumers a low price without
the need to wait for sale price events or comparison shopping.

EDLP saves retail stores the effort and expense needed to mark down prices in the store
during sale events, as well as to market these events. EDLP is believed to generate shopper
loyalty.

 Discounts and Allowances

Discounts and allowances result in a deduction from the base (or list) price. The deduction
may be in the form of reduced price or some other concession, such as free merchandise or
advertising allowances. Discounts and allowances are common in business dealings.

Nestlé (NPL) offers the Trade Discounts to it customers. Trade discounts sometimes called
functional discounts are deductions from the list price offered to buyers in payments for
marketing functions the buyer will perform. The examples of these functions are: storing,
promoting, and selling the product.

 One-Price Strategy

NPL is using this special price strategy i.e. one-price strategy in which the company charges
the same price to all similar customers who buy identical quantities of a product. But for
different quantities the company is offering different price. Even prices are set for the NPL
products.

High low pricing

High-low pricing (or hi-low pricing) is a type of pricing strategy adopted by companies,

usually small- and medium-sized retail firms, where a firm charges a high price for an item
and later sells it to customers by giving discounts or through clearance sales.

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Nestle also use high low pricing strategy at different ceremonies and events like in Ramadan
and etc. And also provide discount to their retailer

Value added pricing

Many Companies are challenged to build its pricing power, which is "its power to escape
price competition and to justify higher prices and margins without losing market share." In
order to increase the company's pricing power, Company's adopt value-added pricing which
is defined as "attaching value-added features and services to differentiate a market offering
and support higher prices, rather than cutting prices to match competitors." This primarily
applies to commodity products simply because these types of products have little
differentiation and extremely intense price competition.

Nestle has also adopted the strategy Value added pricing. Because Nestle provide highly
featured able water to their customer and it has large share in market and a great pricing
power because of this nestle is offering one price for NPL to all cities of Pakistan. It also
keeps the check on distributors to maintain single price of NPL. It offers trade discounts to its
distributors.

Advertising Strategy

Promotion is the very important and crucial element of marketing strategy as through it the
company establishes its image in the minds of the customers. NPL is promoted by using
different ways of promotion.

Advertisement of NPL is done through

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  TV
 Radio
 Billboards
 Newspapers
 Magazines

Current advertising slogans are that NPL is

“Trust, hope and happiness”

“ JIYO! Kay yahi hay Zindagi.”

Nestlé also conducts the

 Tradeshows
 Concerts
 Events
 Sponsorships
 Discounts for sales promotion

For establishing public relations, Nestlé distributes its newsletters, annual reports, calendars
and diaries, lobbying, donation for charitable and civic events. For the victims of 8 th October
2005 earthquake, Nestlé has donated 90 trucks, which were containing different foods items,
and NPL was one of them which is around Rs2 Billion. The Nestle organized its teams to
distribute products to the affected areas and all employees contributed from top to bottom
(MD himself was involved personally to distribute products physically)

Nestlé Has the Internal Advertising Department As Well As Hire the Services
Of The External

Media manager assisted by its assistant to devise all campaigns……

Sales Promotion

It is demand-stimulating activity designed to supplement advertising. It is paid for by the

sponsor and frequently involved a temporary incentive to encourage a sale or purchase. Many
sales promotions are directed at consumer. Nestlé has designed it in away to encourage the
company’s sales force or other members of the distribution channel to sell products more
aggressively. Nestlé Pakistan limited arranges concerts, trade shows, event sponsorship, in-
store displays, and discounts. In Nestlé, a separate sales department is working. The function
of this department is to taking the sales orders, visiting the market, collecting the customer’s
complaints and transferring to the concerned department. They also make sure the availability
of the NPL to the consumer at right time and at right place.

Public relations

It encompasses a wide variety of communication efforts to contribute to generally favorable

attitudes and opinions toward an organization and its products. Unlike most advertising and

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personal selling, it does not include specific sales message. The targets may be customers,
stockholders, a government agency, or a special-interest group. Public relations can take
many forms, including newsletters, annual reports, lobbying, and support of charitable and
civic events.

Nestlé is following all above mentioned public relations forms:

 The company assists through donations such hospitals and organizations that provide
services to the poor and responds to distress calls by the government and NGOs for
assistance to victims of flood, earthquake, drought and other natural calamities.
 The company arrange mil program for undernourished and sick children and mothers
through several NGOs and charitable organizations.
 The company has initiated a tube well and hand pump installation scheme in selected
rural areas.
 It donates computers to schools for disadvantaged children run by NGOs and
charitable organizations.
 To support the spread of education in rural areas, it undertakes Refurbishment
Program of Govt. operated primary and middle schools.
 The Company regularly sponsors sports and cultural events, such as the International
Polo Tournament and SAF Games in the recent past.
 The company gives the extra gifts, calendars and diaries to the employees and
customers for public relations.

Publicity

Publicity is also a promotional method used by the Nestlé. Publicity is specific form of public
relations that involves news stories about organization or its products. Like advertising, it
consists of an impersonal message that reaches a mass audience through the media. But
several features distinguish publicity from advertising. The company does not pay for it and it
has little or no control over this and it appears as news and therefore has grater credibility
than advertising. The company seeks for good publicity and frequently provides the material
for it in the form of news releases, press conferences, and photographs. When a picture of a
company’s CEO appears on the cover of business publication and it accompanied by a
flattering article in the magazine, it is often attributable to the efforts of the firm’s public
relations department.

Integrated Marketing communication

Nestlé is using the integrated marketing communication system. In this, company is trying to
coordinate all promotional efforts make an effective impact on the customer mind and to
deliver a consist message. The Nestlé has incorporated several different promotional
campaigns. Depending upon the objectives and available funds, it undertakes simultaneous
local, regional, national, and international programs.

Findings and Recommendations

This is competitive world and must never forget that customers have a choice. If they are not
satisfied with a Nestlé Pure Life, they will switch to another brand. The pursuit of highest
quality at any price is no guarantee for success, nor is a single-minded cost-cutting approach.

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Lasting competitive advantage is gained from a balanced search for optimal value to
customers, by simultaneous improvement of quality and reduction cost. 
Success can never be taken for granted. Nestlé must watch and learn from its competitors. If
they do something better, Nestle must improve its own performance. Nestle can achieve
competitive advantage through Quality.

Progress is followed by listening to Nestle customers and by measuring its works

performance. Shortcomings and mistakes must be analyzed and corrected. Problems must be
anticipated and prevented before they occur. Nestle also must identify and take advantage of
opportunities.

To stand still is to fall behind. So Nestle must strive for continuous improvement in every
area. It is through many small improvements as well as through major breakthroughs that
Nestle will achieve excellence.

We have observed from our extensive hard-work to compile these pages and after visiting the
organization that the company is eager to serve consumers at its every possible level,
consumer services department is the evidence of such a pursuit from the organization point of
view. Presently the company is market leader in it’s category but it shouldn’t take it as a
complacent attitude rather capitalize on its good brand equity and to improve its quality of
product to reap not only more profits for the shareholder but also serve the humanity by
providing them healthful water which in other way a noble & sacred job. The company can
fulfill this job by having such a spirit following it religiously by incorporating it all the
marketing strategies.

New Product Idea

The new product idea that we have chosen is that we are willing that Nestle should proceed
toward spicy foods. Because in Asian countries mostly in Pakistan people want everything
should be spicy and they like spicy foods and meals. So there is a big segmentation of spicy
foods for nestle that nestle still missing. For example, Nestle can be focus on the launching
Chat masala, Baryani masala, Qorma masala and other related spices.

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