Marketing

Report
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 Table of Contents
Executive Summary...............................................................................................................................4
ABOUT NESTLE.................................................................................................................................5
OUR MISSION.................................................................................................................................5
OUR VISION....................................................................................................................................5
NESTLE CATCH’UP...........................................................................................................................6
Current Marketing Situation..................................................................................................................7
MARKETING DESCRIPTION........................................................................................................8
PRODUCT FEATURES ANALYSIS...............................................................................................9
What Makes Our Ketchup So Special............................................................................................9
PRODUCT REVIEW......................................................................................................................10
Nestle Rich Tomato CatchUp:.....................................................................................................10
COMPETITORS REVIEW.............................................................................................................11
NATIONAL COMPETITORS PROFILE ANALYSIS...............................................................11
INTERNATIONAL COMPETITORS PROFILE ANALYSIS...................................................13
DISTRIBUTION AND LOGISTICS FOR CATCH’UP.................................................................14
Distribution criteria:....................................................................................................................14
Distribution and logistics of the Product:.....................................................................................14
Objectives and Issues..........................................................................................................................15
Keys to success:...............................................................................................................................16
Brand Objective:..............................................................................................................................16
Marketing Objectives:.....................................................................................................................16
Financial Objectives........................................................................................................................16
Difficulties and Risks:.................................................................................................................16
The Worst Risks:.........................................................................................................................17
Others:.........................................................................................................................................17
Marketing Strategies............................................................................................................................18
PRODUCT......................................................................................................................................19
CERTIFICATION STANDARDS:.............................................................................................19
INGREDIENTS...........................................................................................................................19
NUTRITION CHART.................................................................................................................19
PACKAGING.................................................................................................................................20
1. Classical packaging:............................................................................................................20
2. Kids pack:............................................................................................................................20
3. Stick Packaging...................................................................................................................20
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 PRICE.............................................................................................................................................21
PLACEMENT.................................................................................................................................22
PROMOTION.................................................................................................................................23
SOURCES FOR PROMOTION..................................................................................................23
POSITIONING................................................................................................................................24
CATCHING UP CONSUMER’S MIND.....................................................................................24
POSITIONING STATEMENT OF CATCHUP..........................................................................24
POSITIONING STRATEGY......................................................................................................24
Action Plan..........................................................................................................................................25
GAANT CHART.............................................................................................................................27
Marketing Budget................................................................................................................................28
INCOME STATEMENT.................................................................................................................30
BALANCE SHEET.........................................................................................................................32
CASH FLOW STATEMENT..........................................................................................................34
BREAK EVEN POINT...................................................................................................................35
Implementation and Control................................................................................................................36
IMPLEMENTATION AND CONTROL........................................................................................37
ORGANIZING MARKETING DEPARTMENT........................................................................37
CRITERIA FOR RECRUITMENT OF MARKETING DEPARTMENT...................................38
Academic qualification:...............................................................................................................38
Professional skills:.......................................................................................................................38
CONTROLS....................................................................................................................................38
IMPLEMENTATION MILESTONES............................................................................................39
Conclusion...........................................................................................................................................40
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 Executive Summary
Nestle has long been considered to be one of the leading brand in the field of manufacture of
fast moving consumer goods. Nestle is famous for providing quality products to its
customers. Due to the success of NESTLE in Pakistan and with the vision of increasing its
market share now NESTLE has yet to launch its very own SBU for the manufacture of
ketchup which will go by the brand name of “Catch’Up” in Pakistan. Though our objective
is to initially launch the brand in only Pakistan we plan to expand our operations to an
international scale once we get a favorable response from the country in the launching year.
Our marketing strategy is to attract new customers, educate them and to create loyal customer
base. Our product is mainly for those who are health conscious and are looking for quality
branded products. Our marketing strategy is designed in accordance to the need of all type of
people as it is useful for children, youngster, adult and old people. We have targeted not only
the individuals but also the wholesalers, retailers as well the restaurants.
Our product has highest ratio of real tomato which is 35.5%, 13.5 gm sugar and 114 kcal.
Moreover, CATCH UP is free from all type of artificial colors and flavors. The packing of
Catchup is designed for all as it contains glass bottle, plastic bottle sachet, kids cartoon
package and stick size. These two-unique packing of kids cartoon and stick size is designed
to meet the need of customers. Kids cartoon face packing is to attract children whereas stick
packing is meant to facilitate our customers. Now they no longer need to purchase big glass
and plastics bottles with them which are difficult to carry. We have decided to promote our
product through print media, social media as well electronic media to whole year and as well
different seasonal campaigns and sponsorships.
NESTLE CATCH-UP has direct as well as indirect competitors like NATIONAL FOODS,
SHANGRILLA, KNORR, KISSAN CREMICA etc. After doing competitor analysis we
designed our distribution to increase our sale in comparison of our competitors. We will
distribute our products directly from our outlets and indirectly through our wholesalers and
retailers. At the end of first year we will ask our channel partners to include CATCH UP in
the major ketchup catalogs. Our main marketing objective is to establish strong sales and to
improve market presence to the end of first year and 12% to second year. Our financial
objective is to achieve a breakeven point till the end of first year and after 5 years increase
our profit by 2% per quarter. To achieve these objective, we will face some potential
problems which include the economic conditions of NESTLE and changing customer
satisfaction. In the initial year, it will be difficult to convince people that NESTLE CATCH
UP has better quality and taste.
We the have forecasted a modest growth rate for the first year. In the second year, we will
increase our campaigns and start selling our product to all over the PAKISTAN as well in
fourth year we plan to start selling our product internationally to increase the market share of
our product
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 ABOUT NESTLE
Nestle was founded in the year 1905 by Henri Nestle. Their headquarters are in Vevey
Switzerland. It is known for being a multinational food and beverage company. The products
which have reportedly been their most fruitful source of income are baby foods,
confectionaries, coffee, tea, juices, chocolates and frozen foods. They are carrying out their
operation in 194 countries. Apart from them being one of the largest food companies of this
time they are also one of the major shareholders of L’Oréal. Nestle has been listed as no. 1 in
Fortune global 500 as the most profitable corporation in the world. Current it is on no 9 of the
list.
OUR MISSION
“To positively enhance the quality of life of people of Pakistan by all that we do through our
people, our brands, products and our Creating Shared Value (CSV) initiatives”

OUR VISION.
"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”.

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 NESTLE CATCH’UP
After becoming one the leading brands in the field of Fast Moving Consumer Goods Nestle
plans to expand its portfolio by launching its own SBU of ketchup named as “CatchUp”.
Our target is for it to become the leading SBU of NESTLE. Our main purpose is to provide
the customers with best quality and purest form of ketchup by satisfying their need and to
support the overall mission and objective of NESTLE company.

Tag line:
“Eat right, be bright”.

Mission:
“To become the trust leader in providing healthy food items”
NESTLE CatchUp wants to become a leader of ketchup by providing a healthy nutrient
ketchup to its customer.

Vision:
“To inspire a healthier world by connecting people to nutritious and natural food”
NESTLE CatchUp helps people to enjoy their happy moments with a great sense of taste and
health by providing a healthy, delicious and secure life.
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 Current
Marketing
Situation

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 CURRENT MARKETING SITUATION
NESTLE CatchUp will be introduced primarily in Pakistan after observing a favorable
response we plan to expand our operations on an international level. Our target is to grasp the
attention of all generation. The kids, youth, mature and old’s and overall families.
The prices of NESTLE Catch-up is comparatively economical in comparison to other
international brands because it is for everyone in the society.

MARKETING DESCRIPTION
SEGMENTATION:
The segmentation of Nestle Catch up has been done in the following way: -
GEOGRAPHIC:
NESTLE CATCH-UP will be launched in Pakistan first. We have divided the market of
Pakistan into different zones:
 A zone includes all the big cities of Pakistan include KARACHI, LAHORE, and
ISLAMABAD where we need to introduce our product in bulk quantity as mostly
items are preferred to eat with catchup. These areas are of our prime importance to
boost our sales.
 B zone includes all the small cities of Pakistan where we introduce our product in
moderate quantity as there is a low population in these areas.
 C zone includes all the villages of Pakistan where we don’t need to spend a large
amount on our product promotion.
DEMOGRAPHIC:
The primary target market of the NESTLE CATCHUP is all consumers of whole
PAKISTAN that have a thirst for a high-quality ketchup from a reputable brand that cares
about small communities and saving the environment. The NESTLE CATCHUP is well
known for advertising to persons of all ages, genders, incomes, ethnicity and lifestyles.
Nevertheless, more specifically, the NESTLE CATCHUP has focused on a secondary target
market, based on specific psycho-graphic characteristics, of consumers that are health
conscious and interested in buying products to support their overall wellness.

TARGET MARKET
When it comes to the consumer market, NESTLE is a very broad market base. NESTLE
CATCH-UP divides its target market in the following way:
 INDIVIUDAL CONSUMERS: All those individual consumers who are looking for
a high-quality ketchup and are health conscious in all generation.
 WHOLESALERS AND RETAILERS: All that commercial business who buy
NESTLE CATCUP for selling purpose to their customers.
 RESTAURANT AND HOTELS: All those restaurants and fast food (i.e.
McDonalds, KFC, PIZZA HUT etc.) who buy NESTLE CATCH-UP for the use of
their clients.
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4
 PRODUCT FEATURES ANALYSIS

Product CatchUp National Kissan Heinz Cremica

Feature
Amount of Sugar Sugar Sugar Sugar Sugar
sugar (100gm) (100gm) (100gm) (100gm) (100gm)
13.5gm 23gm 32gm 22gm 19gm
Ratio of real 35.5% 15% 12% 20% 34.5%
tomato

Packaging Innovative Traditional Traditional Traditional Traditional

packaging via Packaging in Packaging in Packaging in Packaging in
bottle. bottle, Sachet bottle, Sachet bottle, Sachet bottle, Sachet
Traditional & pouch. & pouch. & pouch. & pouch.
Sachet &
pouch
Nutritional Per 100 grams Per 100 grams Per 100 grams Per 100 grams Per 100 grams
Benefits
Fat 2g 0.2 0.14 0.1 2.2g
Carbs 32.3g 25 33.34 26 31g
Protein 1.6g 0.99 1.33 1.2 1
Energy 144 Kcal 137.5Kcal 133.33Kcal 109Kcal 131Kca
0

What Makes Our Ketchup So Special

Using only the finest ingredients and cooking methods, so CatchUp is 99.9% natural,
certified Gluten Free, Vegans and Vegetarian Society approved – meaning everyone can
enjoy them.

Rich Tomato
The Nestlé CatchUp is the only product contain maximum amount of real tomato 35.5%.

Healthy
The Nestlé CatchUp is 99.9% natural with no artificial sweeteners, colors or flavors.

Allergen Free
Our products are free from allergens and certified Gluten Free.
Vegetarian & Vegan Friendly
Suitable for vegetarians & vegans and we are proud to be accredited by the Vegetarian
Society.
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 PRODUCT REVIEW
Nestle Rich Tomato CatchUp:
Nestle Tomato CatchUp goes with almost all the dishes. The taste of this CatchUp is very
natural and very close to real. The sour taste is very minimum and sweetness is optimum. It
will gain the position a leading ketchup brand with its unique taste. It is full of fresh tomatoes
and gives the taste which is much more superior to any other regular tomato in the market. Its
taste is also due to international standard production and use of healthy and fresh ingredients.
Nestle has used some preservatives in it which maintains its freshness and quality so that the
taste does not undergo any change even after days of refrigeration.
Nestle CatchUp enlightens your taste buds to a whole new level and makes your meal joyful
and memorable.
The Nestle CatchUp costs more than many brands but also lesser then many other brands.
Nestle CatchUp can be used with a wide variety of things especially, Burgers, Fries,
Sandwiches, fritters, samosas, roasted meat. It can be used any meal as a sauce also.
Ingredients: 
Water, Sugar, Tomato Paste, Salt, Acetic Acid, Onion Powder, Spice Extract, Garlic Powder,
Sodium Benzoate and Pectin.
Product Weight:
 Glass bottle 300 ml
 Plastic bottle500 ml
 Sachet 24x30 ml sachet box
Package: 
 Glass bottle
 Plastic bottle
 Sachet box
 Kids Cartoon packet
 Stick Package
Key Statement:
It is smooth and creamy with a sweet finish. Although it has the least sugar content amongst
all brands, most tasters found it to be too sweet. Sugar (100gm) 13.5gm Calories (100gm)
114 Kcal
Manufactured By: Nestle Pakistan Ltd.
Country of Origin: Product of Pakistan  
Storage Instructions: Keep in Cool & Dry Place
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 COMPETITORS REVIEW
“Nestle CatchUp” has its direct competitors nationally and internationally.
KEY DIRECT COMPETITORS NATIONALLY.
o National foods
o Shangrilla
o Knorr
o Mitchells
KEY DIRECT COMPETITORS INTERNATIONALLY.
o Kissan
o Heinz
o Cremica

NATIONAL COMPETITORS PROFILE ANALYSIS

S. No Competitive NATIONAL SHANGRILA KNORR
Factors
1. Tag line The real ketchup -non- Put Knorr in, get more
experiences. out!
National ketchup
zaroori.
2. Objectives To be positioned as a They pledge to At Knorr, they purpose
food company. contribute to the is to enrich people’s
Consistent quality and betterment lives through flavor.
pure ingredients of environment and Flavor is emotionally
Authentic recipes culture in charged and much
Attain and maintain communities where richer than just the
leadership in all we produce and notion of taste. Flavor
categories of products distribute out can remind you of
being manufactured product. home and take you
away.
3. Product line Tomato ketchup. Tomato ketchup, Knorr ketchup
Chili Garlic Sauce. sauces Knorr chili garlic
Hot & Spicy Sauce. sauce.
4. Price Segment Nominal Nominal ranging Nominal ranging
RS30-200. PRs 80-200 PRs 80-200
Competitive price. Competitive prince Competitive prince
5. Promotion Pull & push strategies. Print ads Print ads
Television, Radio TV ads TV ads
Newspapers Campaigns Campaigns
BTL activities BTL activities
6. Placement High Availability. High Availability. High Availability.
Variety. Variety. Variety.
Healthy. Healthy. Healthy.
7. Target Market Home makers House holds House holds
Children/ Middle and higher Middle and higher
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 students/youth. income group income group
8 SKU Pouches Sachet. Ketchup pouches
Squeeze bottles. Stand Alone Pouch. Plastic bottles
Glass bottles Bucket.
(Small/high) Ketchup pouches.
9. Profitability 10.2% (2016) 6% (2016) 7% (2016)
10. Market share 49% 20.7% 10.2%
11. Strength - Broad product line - Strong global brand - Established family
- Brand market - Strong and wide brand
manufacturing range of distribution - Experienced business
competences channel units
- Good marketing skills - Good customer - Monetary assistance
- Enhanced research relationship provided by
and development High growth rate
- Appropriate organize Barriers of market
structure entry,
- Good finance Existing distribution
management and sales networks
- Innovations
- Advance technology
12. Weakness Currently NFL is Lacking in proper Competitive pricing
operating with its full marketing strategies Storage issues
capabilities and the Lesser SKU’s
company’s sale Low inventory
manager does not think turnover
that there is any internal
weakness in the
organization.
13. Opportunity  Expanding into foreign Cheaper labor Growing economy
markets Growth in market New markets
Expansion of core Expand operation on New acquisitions
business a global scale New products and
Entering related Improve marketing services
business strategies
14 Threat. New entrants New entrants Price changes
No barriers on entry No barriers on entry Tax changes
New cheaper substitute New cheaper Technological
in the company substitute in the problems
Fixed quota system on company
the company’s imports
Natural disaster
External changes (govt,
policies, taxes, steel
prices etc.)
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 INTERNATIONAL COMPETITORS PROFILE ANALYSIS

S. No Competitive KISSAN HEINZ DELMONTE

Factors
1. Tag line Just lagoon, kuch b Redder, Thicker, “Tastes like never
khao Tastier before”
2. Positioning Makes food interesting Focused on health High quality and
original blend
specially made to
suit the Indian palate
3. Product Range Fresh tomato, no onion Tomato ketchup, Regular Tomato
no garlic, chili tomato, ketchup with balsamic Ketchup
chatakdaar vinegar, organic
ketchup, ketchup
blended with Indian
spices, ketchup reduced
salt and sugar, ketchup
chili, ketchup fiery chili
4. Price Segment High priced – Rs.112 High price- RS 125 High priced – Rs.110
(1kg) (1KG) (1kg)
5. Promotion T.V ads, print ads, TV ads, Print Ads, T.V ads, print ads
hoarding Hoardings
6. Target Market Middle-income and Institutional clients (Air All age group –
upper-income India, Oberoi and Taj) Middle and upper
households  and households class 
7. SKU Bottle- 200gm, 1kg Bottle- 1kg, 500gm, Bottle- 1kg Squeeze-
Mini pack- 90gm 200gm Squeeze- 330gm 520gm
Sachet- 10gm
8. Profitability 3.34% 26.8 10.43%
9. Market share 41% (In India) 50% (In USA) 6%
2% (In India)
10. Strength Strong brand name - Good brand name - Good brand name
Excellent advertising - Good advertising - Good advertising
and visibility - Good distribution in - Good distribution
Good product big cities in big cities
distribution and
availability.
11. Weakness Not too thick Food products have a Food products have a
limited shelf life limited shelf life
12. Opportunity Tie-ups with corporates More advertising More advertising
Cheaper packets for Reach out to a bigger Reach out to a bigger
rural areas audience audience
13. Threat. Threat from other Threat from existing Threat from existing
ketchups and local brands and local brands and local
homemade chutneys competitors competitors
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 DISTRIBUTION AND LOGISTICS FOR
CATCH’UP
Distribution criteria:
Our strategy assumes that we need to go into specialty channels to address our target
customer's needs. We position our products as the highest quality, highest incentive offering
for our own distribution channel. Our distribution channel is:

Distribution and logistics of the Product:

Our channel strategy is to use selective distribution to have our product sold through well-
known stores and shopping malls. During the first year, we will add channel partners until we
have coverage in the country market and the product is included in the major ketchup
catalogs and Websites.
The channels use for the distribution of ketchup in the market are basically through the
supplier’s channels normally include the wholesalers and retailers.
The supply chain of the ketchup usually consists of that the flow of the product starts with the
manufacturer in between the wholesaler, retailer and then consumers.

Channels of distribution:
 All over the Pakistan.
 Intensive distribution to have the product sold in the well-known stores and shopping
malls.
 Fast food shops and an ordinary shop too.

Logistics channels: -
 More than hundred vehicles are used to convey the finished product to the retailers and
wholesaler’s distributors.
 We use containers and trucks for the supply purpose of our product to the market where
it reaches to the customers directly through our retailers.
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4
 OBJECTIVES AND ISSUES
Keys to success:
 Uncompromising commitment to the quality of the product.
 Delivering high quality products that set themselves apart from the others in taste
 Continuously improving the quality of the product
 Communicating differentiation and quality through personal interactions and media
 Providing service, support, and a better than average margin to our dealers.
 Increase gross margin %.
 Bring new products into the mix to increase sales volume.

Brand
Objectives and
Issues
Objective:
The corporate objective or brand objective of Nestle Catchup is to provide its customers with
healthy, high quality and tasty Ketchup at all times. Moreover, Nestle Catchup also promise
affordable prices and convenience.

Marketing Objectives:
 To establish strong sales in the city's major supermarket chains.
 To achieve a continual increase in market penetration
 To improve market presence by 8% by the end of first year
 Increase second year share to 12%
 Product Innovation: It is necessary for Nestle Catchup to continue its innovative
research and development strategy to come up with new flavors and products.
 Arrange of distribution through the leading retailers and distributors in the country
market within 2 years.

Financial Objectives
 To gain no profit no loss condition in the first year of launching Nestle Catchup
 To produce total revenue of PRs. 6,750,000 in the first year and PRs. 8,900,000 in the
next year
 Within 5 years we want to produce an amount of profit 5.2 million
 To enhance the profit margin by 2% per quarter through efficiency and economies of
scale.
 To maintain an important R&D budget

Difficulties and Risks:

 National economic conditions, which are not favorable to the people.
 Constantly monitor customer satisfaction, ensuring that the growth strategy will
never compromise satisfaction level.
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  National possesses the major parts of the market. As a new product, we may have to
suffer if we cannot persuade the consumers.
 It is risky in the first year to make every consumer believe that Nestle Catchup has
the best taste and is the quality product.
 From the business view point, the restaurants may not be eager to use new product as
they trust the common ones.

The Worst Risks:

 Other potential competitors may produce products with the same features.
 If the competitors decrease their price, initially Nestle Catchup will not be able to
decrease the price as it is initially being launched.
 For inflation and decreasing living standard, people may not be willing to buy
this product and this may create the run on of our business.

Others:
 Due to an already existing large number of ketchup brands in Pakistan it will be
difficult to convince the brand loyal customers to shift towards out new product as they
will be hesitant to abandon their original brand for something new
 As our product contains new packaging designs some people may find them
unappealing and hence would be reluctant to purchase our product.
 Pakistan having a past history of political instability may cause problem for the product.
 As our product is in the initial stages of launch it may face the problem of brand
recognition, this may only be avoided in the case that product becomes popular enough
in initial stages

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Marketing
Strategies

4
 PRODUCT
Nestle has long been considered to be one of the leading brands in the manufacture of fast
moving consumer goods. In our all new venture, we plan on expanding our product line by
introducing our very own ketchup brand by the name of “CatchUp”. The key feature of our
product is the fact that it contains about 25% of fresh tomato goodness in it. Our aim is to
provide people with hygienic as wells as best quality ketchup so that they can enjoy their
meals with maximum amount of fresh tomato goodness.

CERTIFICATION STANDARDS:
Following are certification obtained by Nestle to carry out its operation in Pakistan: -
1. Halal foods Certification by Halal Food Authority
2. ISO 9001 (Quality Management System)
3. PSQCA product certifications
4. Occupational Health and Safety Management
5. IFANCA certification

INGREDIENTS
S.no Ingredients Quantity
1. Tomato paste 9 ounces can
2. Light Corn Syrup ½ cup
3. White Vinegar ½ cup
4. Water ¼ Cup
5. Granulated sugar 1 table spoon
6. Salt 1 tea spoon
7. Onion powder ¼ tea spoon
8. Garlic powder ¼ tea spoon

NUTRITION CHART
Nutritional Information
S.n Nutrition Quantity
o
1 Energy(KJ) 456
2 Energy(Kcal) 107
3 Protein 1 gm
4 Carbohydrate 24.7 gm
5 Sugars 10 gm
6 Fat 0.1 gm
7 Fiber 0.6 gm
8 Sodium 1.2 gm
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 PACKAGING
Nestle along with an aim of providing its customers with hygienic products also aims to
facilitate its customers by providing a new and much more convenient way of packaging.
These new packaging methods include bottle being available in different ways to squeeze out
the ketchup from it.
1. Classical Packaging
2. Kids pack
3. Stick pack

1. Classical packaging:
Following are the different methods of packaging which will be used

S.no Packaging Quantity

1. Glass bottle 300 ml
2. Plastic bottle 500 ml
3. Sachet 24x30 ml sachet box

2. Kids pack:
The kids packaging will include the face of different cartoon characters in place of the
lid. When the bottle will be squeezed the mouth of the cartoon character will squirt out
ketchup. The bottles will be of 500 ml each.
The cartoon character face included in the packaging are: -
1. Spider-man
2. Superman
3. Jerry
4. Tom
5. Doreamon
6. Tweety

3. Stick Packaging
This packaging will include a stick attached under the lid of the bottle. This stick will be
made from the finest quality of wood which will help the ketchup to stick to it easily.
This stick can be used to spread the ketchup easily on bread slices or burger buns. Thus,
saving people from the task of wasting too much ketchup on the bun. These bottles will
be 500 ml each
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 PRICE
An important aspect in marketing our product is to set the most economical prices so that
each individual can help themselves without ketchup. Pakistan coming in the status of a
developing country has lower income groups. Hence an aggressive pricing strategy is
necessary to distinguish our product from different brands of ketchup. As it is a key objective
of ours to provide hygienic ketchup. It is also our prime responsibility to produce it at a price
which is affordable for the people
The demand of consumer is another very important factor in pricing. The demand of their
product is elastic because there are a lot substitutes available in term of other food mix of
other company. So, if nestle catch-up introduce a high price product the greater chances are
that our product won’t be very successful.
The prices of nestle catch-up are different and kept according to their sizes.
NESTLE CATCH-UP is available in different packaging at the following prices:
S.no Package Quantity Price (RS)
1. Glass bottle 300ML PRs 90
2. Plastic bottle 500ML PRs 100
3. Sachet box 24*30 sachet box PRs 150
4. Kids Cartoon packet 500 ml PRs 110
5. Stick Package 500 ml PRs 120

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 PLACEMENT
Corporation uses wide-variety of effective and efficient distribution mixes and supply chain
to make their products available to their customers which includes the use of: -
1. Fair-priced shops
2. Warehouses & Distribution centers
3. Wholesalers
4. Retailers
5. Small grocery shops

Nestle follows the FMCG strategy of distribution which involves breaking the bulk. The
typical distribution strategy of Nestle is as follows.

Manufacuturing

Distributor

Retailers

Consumer

Nestle corporation sell its products by giving them large bulk discounts and then send its
products directly from its warehouses or distribution centers to the wholesale corporate
customers which such as Hyper star, Metro in Pakistan, Imtiaz super market etc. In fact, that
nestle is a huge multinational giant it also sells its products directly to small retailers, grocery
and sometimes to even individual customers depending on Nestle special orders.

The Nestle channel is known to be strong with a good marketing and sales network for
channel distribution. On top of it, nestle regularly introduces trade discounts and various
tactics to keep the channel motivated.
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 PROMOTION
As nestle considered as one of the largest and leading food, health, nutrition and Wellness Company.
They provide consumers with great taste and most nutritious choices in a wide range of food and
beverages ranges. And now they are going to introduce nestle new product “Nestle CatchUp” which
can be available in affordable prices and sizes.

The basic purpose of nestle promotion is to explore the area that is being unexposed and bring
awareness in the people.
 Provide information to consumers and as well as others.
 To create a brand identity
 To increase demand.
 To differentiate a product from others in market place.
Main sources of promotion:
SOURCES FOR PROMOTION
S.no Platform Channels
1. Print media The following print media channels will be used in
promotion of the ketchup: -
1. Newspapers
The Nation, Dawn, Express Tribune, Jang, Express
2. Mediums: -
Newspaper ads, Flyers, Billboards, Brochures
2. Social Media The following social media platforms will be used: -
1. Facebook page and advertisement through it
2. An active Twitter accounts
3. Instagram account to share event photos and
campaigns
4. Pinterest
5. YouTube
3. Electronic The following TV channels will be broadcasting our
media commercials on their respective channels: -
1. Geo (the top-rated channel)
2. Dunya news
3. ARY
4. Hum tv
5. Geo super
6. Ten sports
4. Campaigns We plan to run special campaigns according to the different
occasions and festivals of Pakistan: -
1. At start of Zil-hajj month there will be a special buy
one gets one free offer until the Eid.
2. During Ramadan 500 ml ketchup bottle and get 2
sachets free.
5. Sponsorships We will sponsor our product in the following ways: -
1. Sponsor different events of universities
2. Sponsor in Ramadan transmissions where we plan to
distribute free sachets along with iftaar boxes.
3. We also plan to promote the product by free
4
 sampling like distributing ketchup sachet.
POSITIONING
CATCHING UP CONSUMER’S MIND
Positioning helps establish your product's or service's identity within the eyes of the
purchaser. Over 100 years Nestle is positioning their brands to their consumer’s over health
advantages, Similar to others Nestle will position “CatchUp” with nutritious benefits, health
and hygiene factor and best product available in the market
POSITIONING STATEMENT OF CATCHUP
“Catchup your health with nestle catchup, nestle catchup provides the real taste and
goodness of fresh tomatoes to you and your family”
POSITIONING STRATEGY
Position Strategy of Catchup divided into following components
1. Product Strategy
2. Promotion Strategy
3. Price Strategy
4. Distribution Strategy
1. PRODUCT STRATEGY
 Basic Product Strategy will be adopted, containing 25 % of real tomatoes, acquired
by local tomato farms
 Product should be well fitted on ISO and other mentioned standards
 Product Characteristic will be adopted as mentioned above in product characteristics.
2. PROMOTION STRATEGY
 The product will be promoted as hygienic and nutritional kind of ketchup and
marketed as the purest form of ketchup
 All promotion activities will be carried out by marketing and promotion agencies
currently working for Nestle
 Powerful promotion will be adopted
 Initially, TV and Print Commercials will be made, highlighting the health advantage
of catchup , and ensuring the quality of Catch’Up
 Sales promotion will be done on various local stores of cities including Karachi,
Lahore & Islamabad
 Promotion will be done in a way to grab mass market
 Transit Advertisement will be placed on Nestle Distribution Cars, and other Nestle
owned vehicles
3. PRICING STRATEGY
 Value Pricing should be charged
 Price value will not be mentioned on the product
 TV and Print Advertisement Shows the Price tag
 Price schedule will be as under
4. DISTRIBUTION STRATEGY
 Intensive distribution will be adopted to grab the mass market share
 Initially product will be widely available in the Cites of Karachi Islamabad &
Lahore
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 Distribution Channels will have advised to carefully provide Catchup to most of the
local shops and stores in cities mentioned above

4
Action Plan

4
 ACTION PLAN
TASKS STARTING ENDING DURATIO
DATE DATE N
Situation Analysis 10-Jul-16 20-Sep-16 72
Company Analysis 11-Jul-16 13-Aug-16 33
Customer Analysis 16-Aug-16 31-Aug-16 15
Competitor Analysis / CPA 1-Sep-16 19-Sep-16 18
New Product Development 21-Sep-16 31-Dec-17 466
Idea Generation 21-Sep-16 30-Sep-16 9
Idea Screening 1-Oct-16 31-Oct-16 30
Concept Development and Testing 1-Nov-16 15-Nov-16 14
Market Segmentation 15-Nov-16 3-Dec-16 18
  Product 1-Dec-16 1-Dec-17 365
  Pricing 1-Dec-16 31-Dec-16 30
  Place 25-Dec-16 31-Dec-16 6
  Promotion 1-Jan-17 10-Jan-17 9
  Print Media 1-Dec-16 1-Dec-17 365
  Print media (Newspapers) 1-Jan-17 1-Jun-17 151
  Print media (Flyers) 1-Jan-17 1-Dec-17 334
  Print media (Bill boards) 1-Jan-17 1-Apr-17 90
  Print media (Brochures) 1-Jan-17 1-Jun-17 151
  Social media (Facebook page, Instagram, 1-Jan-17 1-Jun-17 151
YouTube, Twitter etc.)
  Electronic media 1-Dec-16 1-Dec-17 365
  Advertisement on Geo and Hum TV 1-Jan-17 1-Dec-17 334
  Advertisement on Dunya News and Ary 1-Jan-17 1-Dec-17 334
  Advertisement on Geo Super and Ten sports 1-Jan-17 1-Dec-17 334
  Campaigns 1-Jan-17 1-Dec-17 334
  BUY 1 500ml bottle and get 2 Sachets free 26-May-17 6-Sep-17 103
  Iftar with Ketchup 26-May-17 25-Jun-17 30
  BUY 1 get 1 Campaign 26-May-17 25-Jun-17 30
  Sponsorships 26-Aug-17 6-Sep-17 11
  Event of Universities 1-Feb-17 1-Dec-17 303
  Ramadan Transmissions 1-Feb-17 1-Dec-17 303
  Positioning 1-Dec-16 1-Dec-17 365
EXECUTE 1-Dec-17 31-Dec-17 30
4
GAANT CHART

4
Marketing
Budget

4
 MARKETING BUDGET
PRINT MEDIA
Medium Sources Cost
Newspapers and Magazines Newspaper: - PRs 40,000,000
1. Jang
2. Dawn
3. Express
Magazines: -
1. V-Shine
2. Smash
3. Young times
4. Nau-Nehal
Flyers Insta print PRs 140,000,000
(20,000,000 x Rs 7)
Brochures Insta print PRs 360,000,000
(20,000,000 x PRs 18)
Bill boards 50 billboard signs PRs 300,000,000
(50 x PRs 6,000,000)
Total Print Media Budget PRs 840,000,000

ELECTRONIC MEDIA
Medium Sources Cost
Television advertising Geo PRs 40,000,000
Hum Tv
Dunya news
ARY
Geo super
Ten sports
Radio City FM PRs 10,000
SunOS FM 89.4
Radio One FM 91

Electronic Media Budget PRs 400,010,000

E-MARKETING
Medium Sources Cost
Social Media marketing 1. Facebook page PRs 40,000,000
2. Instagram
3. Twitter
4. YouTube
5. Pop-up ads
Mobile marketing PRs 450,000
Electronic Media Budget PRs 40,450,000
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 CAMPAIGNS
Medium Sources Cost
BUY 1 500ml bottle and get 2 1. Tv commercials PRs 5,000,000
Sachets free 2. Social media campaign

Ramadan Campaign PRs 4,000,000

Electronic Media Budget PRs 40,450,000
SPONSORSHIPS
Sponsorships Amount
Event of Universities 200,000
Ramadan Transmissions 300,000
Sponsorship Budget PRs 500000

INCOME STATEMENT
2021 2020 2019 2018 2017
% % % % %
Sales 19.32% 13.80% 19.21% 29.85% 22.96
Cost of sales 19.41% 13.01% 15.55% 22.55% 24.79%
Gross profit 19.17% 15.29% 26.80% 48.16% 18.61%
Administration cost 29.01% 35.24% 28.92% 13.33% 9.76%
Distribution cost 10.60% 18.33% 36.82% 33.97% (2.64%)
Other operating 45.39% 0.04% 9.21% 130.30% 94.12%
expenses
Advertising expense 25.76% 25.87% 26% 27.98% 29.39%
Financial charges (57.41) 16.68% 5.63% (43.65%) 27.27%
%
Other income 57.37% 6.19% 55.81% 58.33% (47.83%)
Profit before tax 38.74% 35.45% 36.97% 31.86% 21.63%

Taxation 5.47% 6.18% 20.55% 13.13% 7.45%

Profit after taxation 33.24% 29.12% 15.41% 18.91% 8.37%
The Income Projection Statement is another management tool to preview the amount of
income generated each month based on reasonable predictions of the monthly level of sales
and costs/expenses. As the monthly projections are developed and entered, these figures serve
as goals to control operating expenses. As actual results occur, a comparison with the
predicted amounts should produce warning bells if costs are getting out of line so that steps
can be taken to correct problems.
4
The Industrial Percentage (Ind. %) is calculated by multiplying costs/expenses by 100% and
dividing the result by total net sales. It indicates the total sales that are standard for a
particular industry. You may be able to get this information from trade associations,
accountants, banks, or reference libraries. Industry figures are a useful benchmark against
which to compare the costs/expenses of your own business. Compare your annual percentage
with the figure indicated in the industry percentage column.
The following is an explanation for some of the terms used in the table that follows:
Total Net Sales (Revenue): This figure is your total estimated sales per month. Be as
realistic as possible, taking into consideration seasonal trends, returns, allowances,
and markdowns.
Cost of Sales: To be realistic, this figure must include all the costs involved in making
a sale. For example, where inventory is concerned, include the cost of transportation
and shipping. Any direct labor cost should also be included.
Gross Profit: Subtract the cost of sales from the total net sales.
Gross Profit Margin: This is calculated by dividing gross profits by total net sales.
Controllable Expenses: Salaries (base plus overtime), payroll expenses (including
paid vacations, sick leave, health insurance, unemployment insurance and social
security taxes), cost of outside services (including subcontracts, overflow work and
special or one-time services), advertising, travel and auto (including business use of
personal car, parking, and business trips),
Supplies (including all items and services purchased for use in the business),
Utilities (water, heat, light, trash collection, etc.),
Miscellaneous: repair and maintenance (including both regular and periodic expenses,
such as painting), accounting and legal (the cost of outside professional services).
Fixed Expenses: Rent (only for real estate used in business), depreciation (the
amortization of capital assets), insurance (fire, liability on property or products,
workers’ compensation, theft, etc.), loan repayments (include the interest and
principal payments on outstanding loans to the business), miscellaneous (unspecified,
small expenditures not included under other accounts or headings).
Net Profit/Loss (Before Taxes): Subtract total expenses from gross profit.
Taxes: Inventory, sales, excise, real estate, federal, state, etc.
Net Profit/Loss (After Taxes): Subtract taxes from net profit before taxes.
Annual Total: Add all monthly figures across the table for each sales and expense
item.
Annual Percentage: Multiply the annual total by 100% and divide the result by the
total net sales figure. Compare to industry percentage in first column.
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 BALANCE SHEET
This is projected balance sheet that communicates expected changes in future asset
investments, outstanding liabilities and equity financing. CATCHUP may consider the
creation of a projected balance sheet as a way to facilitate long-term, strategic planning. A
business' long-term plans often concern future asset growth and how it may be supported by
increased financing through both debt and equity. A projected balance sheet provides the
most relevant financial information needed in the business planning process.

Owner Equity
2021 2020 2019 2018 2017
Issued Subscribed and paid up 0.00% 25.01% 0.10% 0.00% 25.08%
capital
Profit 22.24% 18.12% 12.41% 8.91% 3%
Share Capital and Reserves 24.86% 32.31% 19.45% 51.52% 13.28%
Long term Obligation (21.95%) 3.11% 24.78% (55.51%) (24.29%)
Total long-term liabilities and 21.98 30.05% 19.80% 28.40% 6.6%
share holder equities

Assets
2021 2020 2019 2018 2017
Fixed Asset, CWP and 22.05% 19.03% 12.61% 21.58% 26.31%
intangibles
Other Non-current assets 23.12% 22.73% 633.33% 45% 0.00%
Current assets 7.63% 16.36% 42.55% 6.53% 56.69%
Total Assets 11.49% 17.10% 34.65% 10.72% 45.78%
Current liabilities& provision 2.10% 7.52% 48.24% (1.67%) 75.67%
Net Assets 21.98 30.05% 19.80% 28.40% 6.6%
4
Following are guidelines for what to include in the balance sheet:
Assets:
Assets: Anything of value that is owned or is legally due to a business. Total assets
include all net values; the amounts that result from subtracting depreciation and
amortization from the original cost when the asset was first acquired.
Cash—Money in the bank or resources that can be converted into cash within 12 months
of the date of the balance sheet.
Inventory—Raw materials on hand, work-in-progress, and all finished goods (either
manufactured or purchased for resale).
Long-term Investments—Holdings that a business intends to retain for at least a year.
Also known as long-term assets, these are usually interest or dividend paying stocks,
bonds or savings accounts.
Fixed Assets—This term includes all resources that a business owns or acquires for use in
its operations that are not intended for resale. They may be leased rather than owned and,
depending upon the leasing arrangements, may have to be included both as an asset for
the value and as a liability. Fixed assets include land (the original purchase price should
be listed, without allowance for market value), buildings, improvements, equipment,
furniture, vehicles.
Liabilities:
Current Liabilities: Include all debts, monetary obligations, and claims payable within 12
months.
Accounts Payable—Amounts due to suppliers for goods and services purchased for the
business.
Notes Payable—The balance of the principal due on short-term debt, funds borrowed for
the business. Also includes the current amount due on notes whose terms exceed 12
months.
Interest Payable—Accrued amounts due on both short and long-term borrowed capital
and credit extended to the business.
Long-term Liabilities—Notes, contract payments, or mortgage payments due over a
period exceeding 12 months. These should be listed by outstanding balance less the
current position due.
Owner’s equity:
Net Worth—Also called owner’s equity. This is the amount of the claim of the owner(s)
on the assets of the business. In a proprietorship or partnership, this equity is each
owner’s original investment plus any earnings after withdrawals.
Most computerized bookkeeping systems can generate a balance sheet for the period(s)
required.
Note: Total assets will always equal total liabilities plus total net worth. That is, the bottom-
line figures for total assets and total liabilities will always be the same
4
 CASH FLOW STATEMENT
Begin by filling in the figures for the various types of expenses in the cash flow table on the
following page.
We start year in the table that follows with starting cash of Rs 1,673,893. and consolidate our
“cash out” expenses from your cash flow table under the three main headings of rent, payroll
and other (including the amount of unpaid start-up costs in “other” in Year 1).
Continue the yearly projections in the table that follows until the ending balances are
consistently positive.
Find the largest negative balance—this is the amount needed for start-up capital in order for
the business to survive until the break-even point when all expenses will be covered by
income.
Continue by inserting the amount of needed start-up capital into the cash flow table as the
starting cash for Year 1.

2017 2018 2019

Cash flow from operating activities
Cash generated from operation 1,673,893 817,081 1,547,792
Finance cost paid (53,490) (101,683) (46,090)
Income tax paid (132,640) (151,202) (132,640)
Retirement benefits obligations paid (61,382) (3811) (61,382)
Net increase in long term deposit (12,643) (10,492) (12,643)
Net cash from operating activities 1,413,738 549,956 1,295,037

Cash flow from investing activities

Purchase of plant, property and equipment (467,793) (346,618) (467,721)
Sale proceed from disposal of property, plant 29,988 7761 29,989
and equipment
Purchase of intangible assets (22,740) (21,212) (22,739)
Purchase of open ended mutual fund units (777,988) (150,000) (777,988)
Sale proceeds of open ended mutual fund units - - 884,555
Net cash used in investing activities (353,978) (460,069) (353,904)

Cash flow from financing activities

Short term borrowing obtained 508,696 550,000 508,696
Repayment of short term borrowing (808,722) (980,000) (808,722)
Dividend paid (412,814) (166,781) (412,815)
Net cash used in financing activities (712,840) (596,781) (712,841)
Net increase/decrease in cash and cash 346,920 (506,894) 228,292
equivalents
Cash and cash equivalent at the beginning of (456,467) 50,427 50,027
the year
Cash and cash equivalent at the end of the (109,547) (456,467) 278,319
year
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 BREAK EVEN POINT
Breakeven point is the point at which revenue equal costs. We need to find that point to
determine that by producing how many units we start to earn profit on specific selling price.
BREAK EVEN POINT = FIXED COST/ (SELLING PRICE - VARIABLE COST)
= 250,000/ (150-80)
= 250,000/70
= 3571.43Units
Therefore, by producing 3572 units in first year we can achieve no profit no loss condition
whereas increasing these units we can earn profit.

4
Implementatio
n and Control

4
 IMPLEMENTATION AND CONTROL
The implementation phase includes three steps: -
1. Organizing marketing department
2. Staffing the organization
3. Directing execution of marketing plan

ORGANIZING MARKETING DEPARTMENT

The marketing department will be set up in accordance with following organogram which
will specify in detail the responsibilities of each post: -

1. Marketing President 
He will be involved in planning and creating the marketing strategy for the company, its
products or services.

2. Marketing Manager
He will be responsible for carrying out marketing strategies for the company. This
includes creating marketing messages, choosing mediums such as website advertising and
print advertising, and carrying out other marketing campaigns and programs to reach the
target audience of the company.

3. Marketing Strategies Manager 

He will be at the core to any business and is usually presented in the form of a written
marketing plan.

4. Advertising Director 
He will work with an outside agency to plan and execute advertising programs.

5. Market Researcher Director 

He will find out information about the target audience of the company as well as the
company's competitors.
4
6. Public Relations Manager 
He will focus on managing the marketing budget by choosing the right forms of
advertising. Public relations are generally free. Public relations employees are also the
media spokespersons for the business, so they conduct interviews with members of the
media or prepare the executives of the company interviewed by the media.

7. Promotion Director 
He will generate the interest in the company and will ramp up interest to potential
customers.

8. Creative Services 
They are graphic and webs designers that assist in portraying the company image and
brand to the public.

CRITERIA FOR RECRUITMENT OF MARKETING

DEPARTMENT
Academic qualification:
Must have a Bachelor’s degree or Master’s degree with a specialization in the field of
marketing

Professional skills:
 Must have exceptional communication skills
 Should be proficient in team work
 Should have a sound knowledge of the market

CONTROLS
The purpose of our marketing plan is to serve as a guide for the organization. This
marketing plan includes a detailed budget schedule and managerial assignment for every
action program. For control purpose, the plan also allows for month-by-month comparison of
actual versus projected sales and expense. If there is any mishap in the quality or in the price
fixing the company will control this for its own sake. A contingency plan, attached, has been
developed for implementation in case of severe downward pricing pressure. 
The following areas will be monitored to gauge performance:
 Customer satisfaction: Monthly
 Revenue: Monthly and annual
 Expense: Monthly and annual
 New product development
4
 IMPLEMENTATION MILESTONES
The following milestones identify the key marketing programs. It is important to accomplish
each one on time, and on budget.
Nestle Catchup will carry out its marketing strategy and achieve its objectives through a
variety of scheduled programs. We will follow a five-year planning to achieve our profit
margin. We will now analyze the year wise action programs as follows:
2017:
In the very beginning of this year, the personal sales promotion will be withdrawn. We have a
target to gain at least the sales revenue of ---- rupees in this year projected. By this revenue,
we can cover partially the losses of the previous year. To reach the break-even point next
year we have to build the platform. We expect that people are fully aware of our product
now.
2018:
This year is very much important for running our business. This year when we have to reach
our break-even point as we expect. We will complete our sales of 500000 units to achieve no
loss-no profit situation. Here we will earn --------- rupees of sales revenue, while the sales
promotion will be accelerated with respect to the market demand.
2019:
The past three years were to build up the platform for the sales of our product. In this year,
we will emphasize on the quality control of our product. To maintain the other marketing
action, we may have less emphasized on this task. We will try to maintain the price same as
before. The revenue function may get a downward sloping for the quality control at the same
price. So, we have to increase the sales volume at a slight amount. From the very beginning
of the year we have to notice that we are getting nearer to the profitability targeted. 
2020:
Gaining satisfying profitability is the main target of this year. Further features should be
added to our product. Frequent analysis of the quality of the product will be carried out for
the quality control. Analyzing customer satisfaction is also a vital activity for running the
business.
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 Conclusion
Nestle”, being the leading brand in the Field of Fast moving consumer goods aims to provide
the most hygienic and healthy products to its customers, Nestle next objective is to expand its
market share by launching its new SBU in the category of ketchup with the name of “Catch
Up”. As being a leading brand and having an edge in providing hygienic products our new
product is designed for those who are health conscious and who want a quality based product.
We offer our product to every single person who want real taste and enjoy deliciousness in
their food. Catchup has both direct and indirect competitors. We are setting those strategies
through which we not only achieve highest sales in the market but will also capture the
largest market share too. Our product contains pure natural ingredients which not only
provide the best taste results but also prove itself to be the best quality based product that
people will willing to buy again and again. Our distribution criteria are that our product will
sell directly to the outlet stores and indirectly to the wholesalers and retailers too. The
objectives we set for our new product is that we want to established strong market sales
volume by promoting our product and by attracting the customers through the best marketing
strategies and action working plans. To meet our financial objectives, we need to achieve the
breakeven analysis strategy to gain the customer trust towards our new product. Here we
estimate or forecast some predictions too for the upcoming five years for the modest growth
of our product. We plan to convey our brand message through electronics means and print
media so that our customer will be aware about our new product. We expect that our new
product will prove to be a huge success in Pakistan, which will result in launching our
product on an international scale as well.
.
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