Marketing Plan Of Nestle

Cerelac
Group Members:

Abdullah Khan
Syed waqar hussain
Muhammad faizan arif

Faculty: Sir Kashif Hafeez

Course: Marketing Management
(K.U.B.S)
 1.0 ACKNOWLEDGEMENT

Writing this report appeared to be a great

experience to us. It added a lot to our
knowledge.
This report is one of our memorable
experiences in student life. Though words
are inadequate in offering thanks to our
teacher Sir Kashif Hafeez
For stimulating our creative abilities by
assigning this project to us and for his able
guidance and useful suggestions, which
helped us in completing the project work, in
time.Whatever we have learnt from him and
this project report has put indelible
impression on our minds.
 2.0 EXECUTIVE SUMMARY
This is a semester project regarding a baby
food product name Nestlé Cerelac. It starts
with an introduction about Nestlé Company.
It gives a briefing about all the brands of the
Nestlé Company.
Nestle has been serving worldwide with
its excellence in product safety, quality and
value. It provides many products which
include dairy
products, beverages, water, and infant
dietetic and confectionary.
We have taken NESTLE Cerelac for our
Marketing plan. Their aim is to provide
customer with best infant food on suitable
prices make the product as convenient as
possible.
According to their claim that they provide
the best food through out the world.
Nestlé began in Switzerland in the mid
1860s when founder Henri Nestlé created
Nestlé expands across many different
markets including beverages, ice
cream, baby foods/formulas, soups, frozen
foods, snacks, pet care and of course
candy.In line with Nestlé’s global
philosophy.
 Nestlé Pakistan is proud of its
commitment to excellence in product safety
and quality and to providing value and aims
to be the leading Nutrition, Health and
Wellness Company.
Nestlé factories are operating in the
regions:
Africa
America
Asia
Europe
Oceania
Vision:
Nestlé’s global vision is to be the recognized
leading Nutrition, Health and Wellness
Company.
Nestlé Pakistan subscribes fully to this vision
of being the number one Nutrition, Health, and
Wellness Company in Pakistan.

Mission:
To positively enhance the quality of life of the
people of world by all that we do through our
people, our brands and products.
 3.0 Situational Analysis
3.1 Market Summary
The Nestle Cerelac consumers are
spread all over the world one of the reasons
behind is the lower prices offered by Nestlé
and its easy availability every where.
Nestlé Cerelac is that much available that
people hardly find any other Cerelac in
market with an ease.

•Target Market

The consumers are the infants of course

but the customers are the parents and they
select the best quality material for their
children and that’s Nestlé Cerelac.
3.1.1 Market Demographics

To occupy a clear distinctive and desirable

place related to competing baby foods in the
minds of target customers Nestlé Cerelac
segments its market on following bases:

 Geographic Segmentation
 Demographic Segmentation
 Psychographic Segmentation
 Behavioral Segmentation
•Geographic Segmentation:

Cerelac segments its market

geographically on divisional basis.
They wil divide each division in different
zones and every distributer is restricted to
sale its products only in his own zone.

•Demographic Segmentation:

Age:

Nestle have segmented the market from

early age infants to 5 years children and
have launched
different flavors and kinds of Cerelac
according to their requirements.
On the other hand Nestlé Cerelac has
made this product for infants but has
actually targeted the mothers who can
either be very old or young. Mothers are
very conscious about their children health
Income Level:

People belonging to lower income groups

cannot afford to buy readymade baby foods
so Nestlé will target that segment whose
income puts them in the upper middle and
higher income groups.

Social Stratification:

Buyers are divided into different groups

based on social class and life style.

Upper upper class

lower upper class
Upper middle class
•Psychographic Segmentation:

Class consciousness:

Nestlé has also segmented the specific

class of mothers who don’t want to give
breast feed to their children so Cerelac is
the most preferable and best nourishing
food for infants.

Level of Education:

Nestlé makes promotional strategies

keeping in view the customer level of
education. If the % of education is high in a
country then through ads people can be
made well aware of their product and can
convey their message easily.
•Behavioral Segmentation:
Benefits:
Buyers are classified according to the
benefits they seek. Nestlé Cerelac has
launched different flavors and types of
Cerelac according to benefits that are
required by the children of different stages
of early life.

3.1.2 Market needs

Due to rapidly increasing the population
and increase birth rate in pakistan there is
increased in the needs of healthy foods
which nourishes the infants.
Good nutrition is essential for the growth
and development of infant’s first year of life.
They required appropriate food.
Infants and children are very active and
they spend a lot of energy therefore they
needs high protiens and calorie ditets.
3.1.3 Market trends
With more women working outside of the
home, demand for convenient on-the-go
family food is rising.
In an uncertain world, people are turning
to brands they can trust. And they’re
becoming increasingly aware of the
corporate behavior of the companies they
buy from.
People want balance in their diets and in
their lifestyles They’ll choose healthy
options for their children's.

3.1.4 Market Growth

Nestle, sees a healthy growth potential for
its food products meeting specific dietary
needs of changing demands of the
consumers that normal diets fail to do.
Infant food and nutrition as a category will
grow 10-12% and Nestle is well placed to
3.2 SWOT Analysis:
STRENGTHS ------------------ TO BUILD
ON
WEAKNESESS ----------------------TO COVER
ON
OPPORTUNITIES -------------------TO
CAPTURE
THREATS -----------------------------TO DEFEND
ON

3.2.1 STRENGHTS

Nestle includes a culture that is team

focused and an open door policy which
encourages employees to work hard.
People all over the world trust and
recognizes Nestle as a big brand name. It
looks at achieving higher volumes by
renovating existing products and innovating
new products.
low-cost operators which allow them to not
3.2.2 WEAKNESESS

One major weakness of Nestle is that it is

entering into
markets that are already mature and can
give a tough
competition to new entrants.
Nestle Plain Yogurt has proved to be a
Nestle weakness because it has been
unable to make its market place in USA.
Nestle by analyzing the sensitive areas can
overcome its
weaknesses.

3.2.3 OPPORTUNITIES

Nestle in Pakistan has a great opportunity

for expanding its markets because in
Pakistan there is a large market of food and
beverages.
It also has opportunities largely in China
and India as well.
3.2.4 THREATS

Nestle is facing the threats by worldwide

community
Many conferences and campaigns have
been held
against Nestlé in this regard which can
damage the name and trust of its
customers.
Another threat is due to the increasing
popularity of its competitor OLPERS in local
and international markets.

3.2 Competition
Nestle competes with other packaged foods
companies as well as store brands from
retailers
Nestlé’s major competitors are:
•Engro Foods
•Farex
3.2.1 Competitive Advantage

Cerelac is the only popular and quality

baby food in Pakistan. Its unique `stay fresh
seal and a long lasting shelf life gives the
brand a formidable competitive advantage.
 it is easy to make and also it is
completely made considering the digest
system and requirement for infants on
different stages of age.
The factors that make Cerelac successful
is quality and superior nutritional value.
3.3 Product Offerings

Cerelac Offered in:

Cerelac come in a range of seven varieties

of baby food products which are as follows:
· Cerelac Rice
· Cerelac Wheat
· Cerelac Wheat - apple
· Cerelac Wheat - honey
· Cerelac Wheat - banana
· Cerelac Wheat - 3- fruits
· Cerelac Wheat - 4 – Vegetables
 4.0 Marketing Strategy

4.1 Marketing Objectives

Marketing objectives are compatible with
the overall corporate objectives of nestle.
Company’s objective is to be the world’s
largest and best branded food manufacturer
while insuring that nestle name is
synonymous with the products of the
highest quality.
 4.2 Target Market

Geographic dispersion Urban, suburban

Family life cycle Full nest, single parent

Social Stratification Upper upper class, lower

upper class, upper
middle class
Age segments
Infants(0-5), mothers
Income level (18-45)
Average income, above
average
4.3 Differentiation Of Nestle
Cerelac
1. Nestlé Cerelac has strong brand image
on the basis of quality.
2. Nestlé Cerelac always segments the
exact customers.
3. No any single Nestlé competitors are
successful to compete on the basis of
quality.
4. Nestlé Cerelac has positioned among
people as health provider brand for infants.
4.4 Brand Positioning

Nestle communicates itself as 'Good

food, good life'. Cerelac is a name of
quality and best food for babies and the
positioning statement of Cerelac also tells
the same as, 'best start to a healthier
future'
Nestlé does positioning on several bases:
1) On product attributes
2) On needs / benefits
3) On Usage occasion
4) For Classes of users
5) Against competition
4.5 Marketing Mix Of Nestle
Cerelac
4.5.1 Product:
•Sizes
It is available in 3
sizes; 350g and 175
g box packaging and
a 25g sachet for
customer
convenience.
•Shape & Color
The shape and color
are very attractive for
the customers.
•Labeling and
packaging
The labeling and
packaging includes
Nestlé brand and
logo. The packaging
includes an expiry
date and time along
with manufacturing
4.5.2 Price:

Nestle Cerelac
banana
Price Rs.135

Nestle Cerelac
wheat
Price Rs.135

Nestle
strawberry &
apple Cerelac
Price Rs.135
4.5.3 Promotions:

Nestle has adopted the channels for

promotion through TV, News
papers, magazines Doctors and hoardings
etc.

•Advertisement budget of the

company

Nestle has preplanned to start the financial

year but it is kept secret by the company.

•Share of promotion

Share of promotion in over all projects

varies every year. Usually it is 40% of the
product.

•Nature of marketing
4.5.4 Placement:

•Outlets for Product Located

Nestlé Cerelac is available all over in
Pakistan regardless of big and small cities.

•Direct Sales
It is not sold directly to the customers
because of the extensive consumer groups.
It is the reason they sale the product
through distributers for easiness of the
company.

•Warehousing Facilities
Nestlé Cerelac has its own warehouses for
the storage of products as well as it also
has hired some warehouses.

•Transportation Modes
Usually Nestlé mode of transportation is
road which is also used for Cerelac.
4.5.5 Product Life Cycle Of NESTLE
Cerelac
Nestle Cerelac is the market pioneer in
baby foods and and there is huge market of
baby products in pakistan. To retain the
market share of cerelac due to to extreme
competition, the nestle will continue to bring
changes in product life cycle by effective
promotion and by formulating new price
strategies etc. so it will have a long maturity
period.
5.0 Financials
 6.0 Controls
This is the main and last element of the
marketing planning by using this we
can check product standard if there is any
problem arrive in marketing plan the n it
must be corrected.

6.1 Return on Investment:

 standard marketing performance
measures, such as brand awareness and
sales or market shares of the Nestle
Cerelac.
Nestle will use customer-centered
measures of marketing, such as customer
acquisition, customer retention and
customer lifetime value that will produce
returns in the form of more profitable
customer relationships.
the marketing investments could result in
improved customer value and
satisfaction,which, in turn, will increase
6.2 Market Implementation

During the manufacturing of the product

we would go for its advertising.
 We would distribute broachers to create
awareness.
 we would hire some sign board in
different major cities of Pakistan. And at the
same time we would go for TV and radio
commercials.
In all this process our main focus would
be on TV commercials and sign boards
because now a day these are the most
popular things among the consumers.
 7.0 Biblography
www.nestle.com
wikipedia.org/wiki/Nestlé
www.foodanddrinkeurope.com
www.foodnavigator.com
www.Google.com
www.shareinfoline.com
www.Ask.comsharekhan-firststep.com
http://www.nestle-
ea.com/en/aboutus/OurMarkets/DRC/Pages
http://www.scribd.com/doc/29582425/Nestle
http://www.docstoc.com/docs/62851114/nes
tle
http://www.oppapers.com/subjects/nestle-
cerelac-page1.html
http://www.oppapers.com/subjects/cerelac-
page2.html
http://www.scribd.com/doc/36009148/Marke
ting
http://www.docstoc.com/docs/77088176/Ne
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http://shortcaketales.blogspot.com/2011/02/