Grading: A-

Name: Muhammad Muaaz Shabbir

Registration no # Sp19-Baf-005
Fundamentals of Marketing
Submitted to: Ma’am Jawaria Shakeel
Submission Date: 21st April, 2020
Assignment no # 01
 Question # 1:
 Customer Driven Strategy:
A marketing strategy that focuses on the specific set of customers, retaining them by
meeting their needs and using metrics to measure their satisfaction.

Pakistan is ranked as the 5th largest milk producing country in the world with almost
40 billion liters per anum with a value of over Rs 2.5 trillion. Branded Liquid Tea
Creamer market is estimated to be Rs 40 bn/year (400 million liter) and has grown at
20% during last three years.
Dalda Foods entered in this market in 2015 with the successful launch of its tea
creamer brand Cup Shup. In a short span of time Cup Shup has established itself as a
fastest growing brand, already exceeding 6% market share.
As a brand manager of Cupshup I design a following customer driven strategy to target
the customer. The potential for tea whiteners is immense, especially now as people are
realizing the health issues associated with loose milk, as well as because branded tea
whiteners provide consistency in the taste of tea which loose milk does not.
Better segmentation of consumers is required to be done by giving each segment what
they want from the product. The segmentation can be Geographic segmentation or
demographic segmentation. It can further be divided into Psychographic and
behavioral segmentation.
 The product needs to be placed precisely so that it attracts the target audience. It should
be a mix for high standard products and medium level products. This will enable
product to attract attention of all the targeted consumer segments.
 Segmentation:
Market segmentation at the level of segment marketing will be practiced for Dalda
CupShup in order to increase targeting precision. It is recognized that buyers differ in
their wants, purchasing power, geographic locations, buying attitudes, and buying
habits. Dalda Cupshup will try to isolate some broad segments that make up the market
for different items on its product line.

Types of market segmentation:

 Geographic Segmentation:
In this segmentation we divide our product into different geographical units such as
nations, states, regions, counties, cities or even neighborhoods. Customers demands
and needs are varying regionally and geographically so it is important to find out that
what people likes in different different areas.

 Demographic Segmentation:

 Age: Under 6, 6-11, 12-19, 20-34, 35-49, 50-64, 65 and over.

 Gender: Male and Female.
 Family Size: 2-3, 4-6 or more.
 Family Cycle: Young, Single, Married, no children, , single parents.
 Income: 10,000+ per month
 Occupation: Employed, Unemployed, Student, Part time worker, Retired
 Religion: Hindu, Muslim, Christian, Jewish, other.
 Generation: Baby Boomers, Generation X, Millennial.
 Nationality: Pakistani, Indian, Chinese, American, Russian, French, British,
other.
 Psychographic Segmentation:
  Social class: Lower class, Upper Class, Middle Class, Elite Class
 Life Styles: Achievers, Strivers, Survivors.
 Personality: Compulsive, outgoing, authoritarian, ambitious.
 Behavioral Segmentation:
 Occasions: Regular, Special, Seasonal, Holiday.
 Benefits: Quality, service, economy, convenience, speed
 User Status: Nonuser, ex-user, potential user, first time user, regular user.
 User Rates: Light, medium, heavy.
 Loyalty Status: Non, Medium, Strong, Absolute.
 Attitude towards product: Positive, negative, indifferent, hostile.

 Selecting Target Market Segments:

 Undifferentiated or Mass Marketing.
 Differentiated Marketing.
 Concentrated Marketing.
 Micro-Marketing.

 Undifferentiated or Mass Marketing:

In this type of marketing the company target the whole market with one offer rather
than targeting the different segments. This strategy employs a single marketing mix
one product, one price, one placement and we also have to do only a single
promotional effort to reach the maximum number of consumers in that target market.
As a brand manager of Cupshup I will not consider this option because it will not
fulfill the needs of the customers with this type of strategy.
 Differentiated Marketing:
In this type of marketing strategy, the company decides to do a several market
segments and designs product according to do taste of each people. By offering this
type of marketing company hope that there is a higher sales and stronger position with
each market segment.
As a brand manager of Cupshup by developing this strategy, we have higher sales
than undifferentiated marketing and also have stronger position in the target market.
 Concentrated Marketing:
In this type of marketing strategy, the company prefers to target the unique target
market rather than marketing to everyone. A concentrated marketing is a type of
marketing strategy where the organizations’ marketing efforts are focused to a well-
defined market segment.
As a brand manager of Cupshup concentrated marketing will be a good strategy to
achieve the desired business objectives with in a specific market segment.
 Micro-Marketing:
Micro marketing is that type of marketing strategy which tends to target a specific
group of customers within a niche market. This form of marketing calls the marketer
to determine the specific needs likes and dislikes. In this way, matching consumers
with the product being offered becomes a lot easier. This approach is most often very
successful as the customers develop a sense of being important to the marketer and
directs their efforts towards connected with the product more through a personal level
and less from a general level.
As a brand manager of Cupshup it is easy to satisfy the needs of customer at the local
level but we are not able to touch international market.
 Differentiation and Positioning Strategy:
 Positioning:

Dalda Cupshup is highly commodity driven. The final selling price is greatly
dependent on the prevailing world prices. Besides this the perceived difference
between the various brands ion this price sensitive category is almost negligible
therefore the placement at retail outlets greatly determines the sales volume.

In order to cash on the shelf space all throughout the year Cupshup lays great stress
on having a strong distribution system. Each branch has a branch manager to
whom several Assistant Branch Manager Report. Under each Assistant Branch
Manager are Lever’s Distributor Managers. Each Distributor Manager is
responsible for Five Distributors of Lever Range of Products. The entire inventory
leaves the factory and goes to the depot where distributor has already submitted the
total week’s requirements.

 Differentiation:
Differentiation is closely related to positioning. Differentiation is the process
companies use to make a product or service stand out from its competitors in ways
that provide unique value to the customer. Differentiation identifies a set of
characteristics and benefits that make a product different and better for a target
audience. Ideally these qualities are things that 1) customers value when they are
evaluating choices in a purchasing decision, and 2) competitors cannot easily copy.
When both conditions exist, the offering is more attractive to target customers.
 Question # 2(a):

 Product Life Cycle:

The product life cycle is the process a product goes through from when it is first
introduced into the market until it declines or is removed from the market. The life
cycle has four stages:
 Introduction.
 Growth.
 Maturity.
 Decline.
 Product Life Cycle of “Nido”:
There are four stages in the life of a product depends on the time span, the product &
the growth level of the product that in which states it lies.
 Introduction
 Growth
 Maturity
 Decline

In case of NIDO, we can say that the NESTLE NIDO lies in its GROWTH stage for
the following reasons

 Huge shares in market.

 Maximum profit
 It lies in star category in BCG matrix
 Due to changing in culture of Pakistan people switching to DRY MILK from
FRESH MILK (OPEN). This will increase in the sale of NIDO.
 The diagram is shown below:
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Introduction Growth Maturity Decline

 Strategies:
 Product:
The company should provide more features to the product for the customers for the
better response, there will be a ‘More for less’ type of theory. Nestle should take
great care to maintain good quality of NIDO and keep consistency in their quality.
There should be laboratories in the factories in which quality of NIDO is checked
and then it will send to the market.
 Price:
Price is considered to be the key activities within the free enter price system. A
products price influences wages, rent, interest and profit. That is the price of the
product influence the price paid for the factors of production. Consumers rely
heavily on price as an indicator of a products quality especially when they must
make purchase decision. The higher price of Nido is a perception for it to be the
better quality.
The economic conditions of our country are not so good. The people in Pakistan
respond to the less priced goods. Thus, the economic conditions of the country are
not stimuli for NIDO.A person’s economic situation affects the product choice.
NIDO Marketers watch trends in personal income, savings and interest rates. If
 economic indicators point to recession, marketers can take steps to redesign,
reposition and reprise their products closely
 Distribution:
The company distribution channel should provide the following functions

 Time Utility
 Place Utility
 Gathers and Provides information about the changes, development in the
marketing environment.
 Tries to find and communicate with the prospective buyers.
 Distribution helps in promotion.
 Helps in negotiation.
 Helps in transporting and storing goods

In the case of NIDO, Nestle follow the intensive distribution in which it tries its
best effort to distribute the product in as many outlets as possible.

 Advertising:
Advertisement is an essential part of moderate ad so much that it is not possible for
an entrepreneur to even imagine a world without advertising. The advertisement
page of a newspapers, magazines etc. is like a modern novel which gives a “slice
from life”. For this purpose, NIDO NESTLE is going heavy advertisement on TV,
Newspapers, Magazines, and advertisements boards.
  Sales Promotion:
Promotion is a critical ingredient of many marketing strategies. Peoples have
general appreciation about milk powder so that’s why NIDO NESTLE should do
sampling of its products. However, when company finds some break in sales,
advertisement will start and some ads are placed on TV but this is not done on
permanent basis. By doing this company will be satisfied from its promotional
programs because it will get results to its wishes.
Question # 2(b):
 Nido’s Product Line:

 Nido 1+ (FortiProtect):
 Nido 3+ (FortiLearn):

 Nestle NIDO FortiGrow Liviana:

  Nido Fortified (FortiGrow):

 Nido Bunyaad:

MARKET SEGMENTATION

 Geographic Segments:
 Country:
Nestle NIDO is focusing on Pakistan.
 Country Region
Punjab, Sindh, N.W.F.P. and Baluchistan.
  City: NIDO is mainly targeting to metropolitan cities such as Lahore, Karachi
and Islamabad. But it’s also distributing at small cities such as Faisalabad,
Gujranwala, and Multan but its main target is Metropolitan Cities
 Density:
Urban areas.

 Demographic Segments:

 Age:
According to manager, Nido 1+ is for the children of 1 to 3 years, Nido 3+ is for the
children of 3 to 6 years and Nido 6+ is for the 6 to onwards children. So, increasing
or decreasing children population, giving children fresh milk instead of dried milk
etc. can affect the brand.
 Gender:
There is no discrimination while using the NIDO.
 Family Size:
Whatever the family size is, NIDO is for every child.
 Income Level:
The target market of NIDO includes those people having an income of 20000 and
above. On the other hand, occupation, education, religion, race and Nationality play
no part in the case of NIDO.
 Psychographic Segments:

 Social Class
In social classes section, company targets upper class, upper middle, middle class.
 Life Style: In case of NIDO, strivers, which are mostly young children, are our actual
consumers who take NIDO as a milk.
 Behavioral:
 Occasion:
Nido is usually bought frequently, so it lies under Regular occasion category.
 Users:
Regular users, potential users.
 Loyalty Status:
Loyalty status is high.
 Attitude toward Product:
The positive attitude exists among the people for the NIDO.
Question # 2(c):
 Segmentation of New Brand:
Nestle has scrutinized the basic need introducing in the 21 st Century regarding health.
Nowadays, everyone is very conscious about his health. So, Nestle determined to
introduce the new product “milk” in the form of liquid, which will fulfill the need of
thirst and hunger and provide healthier diet to the young children. I would like to
launch a product in different flavor’s like chocolate, strawberry and mango with high
amounts of energy providing ingredients because most of young children doesn’t like
milk at the age of 12-16 so by adding different flavors in it the children would like it
very much.

 Segmentation of Psychographic:

 Social Class: Working, Studying, Middle Class, Upper Class, Elites

Lifestyle: In case of NIDO, strivers, which are mostly young children, are our actual
consumers who take NIDO as a milk.
 Segmentation of Demographic:

 Age:12 to 16

 Gender: Male, Female

 Family Lifecycle: Young, Teenager

 Income: 20,000 to 40,000

 Education: Illiterate, Schoolers, Middle Schooler, High Schoolers

 Religion: Islam, Jews, Christians, Hindus, Sikhs, Buddhists etc.

 Nationality: Not Specified