Contents

Product: Nestle Pure Life ........................................................................................................
1 
Company: Nestle ......................................................................................................................
1
INTRODUCTION.................................................................................................................... 3 
Nestle - Company Overview ....................................................................................................
3

 Nestle Waters
 – 
A subsidiary ................................................................................................. 4
 
 Nestle Pure Life
 – 
The Product .............................................................................................. 5
 
SEGMENTATION & TARGETING ..................................................................................... 6
 
Segmentation .......................................................................................................................... 6
 
Target Market ......................................................................................................................... 6
 
COMPETITORS...................................................................................................................... 7
 
Main Competitors
 – 
Competitive Analysis ............................................................................ 7
 
SWOT..................................................................................................................................... 8
 
Weaknesses ............................................................................................................................ 9
 
Opportunities .......................................................................................................................... 9
 
Threats .................................................................................................................................... 9
 
CUSTOMERS ........................................................................................................................ 10
 
Main Customers
 – 
Customers Analysis ............................................................................... 10
 
Core Competency ................................................................................................................. 11
 
Apparent Marketing Strategy .............................................................................................. 12
 
Recommendations for Strategy Re-vamp ............................................................................ 14
 
Bibliography ........................................................................................................................... 
16
 

Nestle - Company Overview

“Good Food, Good Life” – 
Nestlé
is today world‟s leading health, nutrition and wellness
company (Nestle, 2012).
 Nestlé‟s
mission is to provide the best tasting and nutritious choicesin extensive range of beverages and
food categories to its consumers all over the world.Today Nestle has 67 brands of bottled
water, produced in 36 countries and its distribution ismade in 130 countries worldwide (Nestlé
Waters, 2011). Nestle traces its origin back in 1866 when Anglo-Swiss Condensed Milk Company
openedthe first European condensed milk factory in Cham, Switzerland. One year later, a
trained pharma
cist, Henri Nestle, introduced world‟s first prepared cereals for infants in „Farinelactee‟ in
Switzerland
. Both of these companies merged in 1905 to be a company known
as Nestle with headquarters based in Swiss town of Vevey
 – 
where it started in the beginning.(Nestle, 2012).
 Nestlé‟s first customer was a premature infant who was unable to tolerate hismother‟s milk as
well as any other conventional substitutes. Henri‟s effort was to develop an
alternative source of infant nutrition for mothers who were unable to breast feed. Thus the
cereal was prepared with his experiments on various combinations of cow‟s milk,
wheat flour and sugar (Nestle, 2012).Today Nestle employs around 328,000 people and are
managing different factories and/or operations in almost every country of the World. Nestle
sales for the year 2011 came to bealmost CHF
1
83.7 billion (Nestle, 2012). Nestle SA is a publicly owned company withsubsidiaries across the
globe. Nestle UK and Ireland, is a subsidiary of Nestle SA (Nestle UK and Ireland, 2012). Nestle
has built its competitive advantage on the basis of its unmatched geographic
presenceworldwide. Sprung from the Swiss cultures, the company grew and managed to
establish
a presence in almost every country in the world today. Nestle has developed strongrelationship
s with farmers and other suppliers with the development of local managementteams, R & D and
manufacturing (Nestlé, 2012

Nestle Waters
–
A subsidiary
 Nestle Waters North America Inc. started its functions in 1976 as a company that imported
itsfamous Perrier Sparkling Natural Mineral Water from France. The company tapped in
theopportunity when Americans were looking to adopt a healthier lifestyle with better
foodeating and availability of pure drinking water. The
company‟s bottled water products became
 popular among those customers who were seeking a refreshing all-natured beverage thatcould
have been relied to be free of calories, caffeine and additives. People who wereindulged in
regular exercise related activities started enjoying bottled water after hiking, biking,
tennis etc. instead of a cocktail. By the early 80s, domestic waters were added to
its product line by the company and thus became a major player in the U. S. bottled water mark
et. Nestle Waters North America has today recognized as largest bottled water companyin the
United States (Nestlé Waters North America Inc., 2011)

Nestle Pure Life

–
The Product 
 Nestle Pure Life
 – 
a Purified Water is bottled water prepared with a unique and appropriate balance of minerals
to deliver the best taste (Nestlé Waters North America Inc., 2011).In 1992, Nestlé was the first
company to provide mineral water with the brand name of 
“
Valvert 
”
. Howsoever, Nestlé Water has today grown in 130 countries and markets with 70different
brands. In 1998, Nestlé named its bottled water as
“Nestlé Pure Life”
(Nestle, 2012).The brand was initially sprung in Pakistan and soon it was launched in Brazil,
followed byArgentina, Thailand, the Philippines, China, and Mexico in 2000. India, Jordan, and
Lebanonfollowed in 2001 and then in 2002, Egypt, Uzbekistan and then United States. Now
the product (Nestle Pure Life) is present in several countries of all continents i.e. Asia, Near
East,South and North America and Europe with different brand names (Nestle,
2012). Nestle PURE LIFE offers an ideal balance between a healthy supply of minerals and a plea
sant, refreshing taste, making it suitable for the whole family. It contains essentialminerals such
as:

 
Calcium:
necessary for building strong bones and teeth,

 
Magnesium:
necessary for muscle contraction and transmission of pulses.

SEGMENTATION & TARGETING

Segmentation
 Nestle Pure Life have segmented the product on the following basis:

 
Psychographic Segmentation

 
Demographic Segmentation

 
Geographic Segmentation

 
Behavioral segmentation
Target Market 
After the segmentation of the market, Nestle management has to decide the target market
for each separate segment of the market.
“A position is the way a firm‟s product, brand, or 
organization is viewed relative to the competition by current and prospective cust
omers.”
When positioning a product the marketer wants to convey benefits most desired by the
targetmarket.

Main Competitors
–
Competitive Analysis
 Nestle Pure Life has two very strong competitors in the market, which are trying
to competewith
 Nestlé‟s
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 andreverse osmosis. In an effort to have a competitive edge in the market
they have extendedtheir brand to include six different varieties of fruit flavored flat water and
two varieties of carbonated water that are also fruit flavored.
Pepsi‟s Aquafina water is also available in
different countries with different brand names. Pepsi has been striving hard to penetrate
 Nestle Pure Life‟s market with dif 
ferent strategies (Hanson, 2012).
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 totheir 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. Kinley water etc.Although Nestle Waters
bottles their product in polyethylene terephthalate (PET), thismaterial is 100% recyclable and
does not have BPA (Bi-Sphenol A) which is known to beorganic compound used to make
polycarbonate plastic. This has been declared as toxic. Inaddition their bottles are an average
of 30%
lighter. Nestle waters has so many brands that they can accommodate even the most demandin
gcustomer. 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 useddiffe
rent brand promotion strategies to promote their product. The quality provided by NestlePure
Life has built a strong trust and long lasting relationship between company andconsumers of its
products.

SWOT
Strengths

 
 Nestle is a global food producer with presence in almost all countries. Nestle has beenconsiste
ntly one of the world's largest food producers with sales of almost CHF
2
83.7 billion
in year 2011. Such a strong company‟s brand
image has positive influence and impact for  Nestle Pure Life (Nestle, 2012). 

 
 Nestle has been repeatedlyrecognized as the world's largest company providing bottled
water and have set up facilities to work on water resources ethically.

 
For the twelfth consecutive year, Nestle has been recognized as one of "America's
MostAdmired Food Companies" in Fortune magazine in 2008

Weaknesses

 
There is lack of awareness about using bottled water in the developing countries. Water
isthought to be basic need of human life readily available anywhere. Hence, bottled water isnot
seen as a commercial product in the developing countries.

 
In the developed countries, the branding and promotion of Pure Life Mineral water is
notextensive, therefore competitors get chance to penetrate in the market by fetching
substantialshare of the market.
Opportunities 

 
In today's health conscious societies in the developed and developing countries, pure water can
be promoted as basic item for healthy life.

 
Countries where pure drinking water is not easily available can be tapped and pure and
cleandrinking water can be extensively promoted.

 
 Nestle Pure Life can launch new flavors according to the tastes of different regions. Theseflavor
s can be categorized on the different segmentation basis i.e. demographic.
Threats

 
 Nestle Pure Life has threat from the different bottled water companies who have launchedtheir
bottled waters in the developed countries.

 
They have major competitors, like Hershey's, Cadbury-Schweppes (owned by Pepsi), Lindtand
Ghirardelli, Kellogg's, Post, Starbucks, Beech-Nut, Quaker, Kraft Foods, Dannon, Del-Monte,
Iams, Earth's Best, Heinz, Frito-Lay (owned by Pepsi)

CUSTOMERSMain Customers
–
Customers Analysis
 Nestle is the biggest water bottling company in the world with famous brand name of
“NestlePure Life”
(Hanson, 2012). This product and its customers can be found in several countriesacross the
globe. Nestle has bottled water brands around the world but in the United States,
however, the star of the company is the brand “Nestle Pure Life”. From their numerous
 brands Nestle Pure life stands apart for its light taste and affordability. This brand is availableto
the consumers as flat, flavored or carbonated water. In addition to the Pure Life
brand Nestle has several natural spring water brands like; Poland Spring, Calistoga, Deer
Park, IceMountain, Ozarka and Zephyrhills They also sell mountain spring water with their
brandArrow Head. In the process to purify and prepare the water for consumers Nestle
Bottlersfollows rigorous guidelines as established in each of the countries they sell their
products andin most of the cases exceeding them. Nestle Bottlers not only strive for ways to
improve thequality and taste of their product, but also to develop more efficient and
environmentally safe packaging for their bottled water.Since 1998, when the brand Pure Life
entered the market and in accordance with the Nestle policy on Environmental sustainability,
this company has reduced the plastic in their bottlesmaking them an average of 30% lighter
than the packaging of their competitors. Their bottlesare 100% recyclable. Nestle Bottlers have
established also several recycling programs toensure sustainability of their business in earths
ecosystem. Nestlé Waters have regular programs to introduce and launch new varieties and for
mats tomeet consumers' changing needs in different markets (Nestlé,
2012). Nestlé Waters constantly seek better environmentally-sound production processes. Ther
esearch centers based in France are constantly looking for new product packages, designs
and other layout developments in order to best meet the consumers‟ expectations. Nestle is a
global company but strives act locally, meeting each country's needs and
expectations. Nestlé is the world's foremost Nutrition, Health and Wellness Company, committe
d toserving consumers all over the world.

Core Competency
 Nestle Bottlers do have different brands that come from municipal resources as well as brands 
that come directly from natural springs like their brands Acqua Panna or Comtrex.
However, “Consistency” has helped
 Nestle Bottled water in the market to be a giant in thewater bottling industry. Consistent
quality, flavor a
nd overall reliability of Nestle‟s Pure Life
 product have gained Nestle the loyalty of consumers from all over the World.Usually, bottled
water has many disparagers and the strongest argument in the favor is thatthe bottled water is
only hyped tap water and nothing else. It is true that most common bottled water
producers use municipal resources. It is also matter of the fact that this
water is processed through extensive quality control processes to remove microorganisms, min
eralsand impurities.Below is the global Food market share graph, where Nestle is at the top
(Bar et al., 2004)

. Marketing Strategy

It is expected by marketing division of a company to design a marketing strategy for eachtarget

market of the product or service, which includes the establishment of the marketingmix. The
Marketing Mix consists of multiple aspects of the following four elements: a product, its
price, where is it placed and how the company is going to promote it? These four elements are
intended to
satisfy a target market‟s needs and on the other hand
equallyimportant marketing objectives for an organization.The Company's strategy is guided by
several fundamental principles. Nestlé's
existing products grow through consistent creativity, innovation and renovation while maintaini
ng a balance in different geographic events and
company‟s other 
product lines.
 Nestle‟s
Long-term potential is never sacrificed for pleasing short-term performance. Nestlé
is committed to the following Business objectives in all countries, taking into accountlocal
legislation, cultural and religious practices:

 
 14

 
 Nestlé's business objective is to manufacture and market the Company's products in such away
as to create value that can be sustained over the long term for shareholders,employees,
consumers, and business partners.

 
 Nestlé does not favor short-term profit at the expense of successful long-term businessdevelop
ment.

 
 Nestlé recognizes that its consumers have a sincere and legitimate interest in the
behavior, beliefs and actions of the Company behind brands in which they place their trust, and
thatwithout its consumers the Company would not exist.

 
 Nestlé continues to maintain its commitment to follow and respect all applicable locallaws in
each of its markets
Across the four dimensions of People, Products, Science and communication, Nestle‟s
strategy can be shown as follows (Bar et al., 2004
Recommendations for Strategy Re-vamp
 Nestlé is one of the largest and most successful food companies in the world. It hassuccessfully
introduced many new products into many different segments of the food
and beverage industry and still has potential to introduce new products in its line of products. N
estlé possess a product, LC1, which is innovative, fairly new in the North American perspective, 
provides health benefits for the consumer, while offering a new avenue for  profits for Nestlé. N
estlé, with its probiotic cultures found in its LC1 product, has aninnovation that is ripe to be
introduced into the North American market. Currently LC1 is primarily offered in Japan and
Germany in the form of yogurts, with great degrees of success.Unfortunately LC1 yogurts were
unsuccessful in a number of European markets, includingFrance and The United Kingdom.
Nestle can work on improving the unsuccessful LC1 products in these markets in order to create
a good image for the Nestle
waters. Nestle waters can have extensive marketing and promotional campaigns in the developi
ngand under-developed countries where focus is less on the health related issues.