KARACHI UNIVERSITY BUSINESS

SCHOOL

NAME: SANIA HASHMI

CLASS: BBA SEMESTER –II

SECTION‘C’

MARKETING ASSIGNMENT II

MARKETING MIX OF NESTLE

PRODUCT:
Broadly the products of Nestle has been classified into 4 major categories.

BEVERAGES: The Beverages includes: Nesfruta, Fruita vitals, Nestea.

MILK RELATED GOODS: The milk related goods includes: Nestle Every
day, Nestle Nido, And Nestle Milo.

PREPARED DISHES AND COOKING AIDS: These products includes

Nestle Maggi.

CHOCOLATES: The chocolates includes KitKat, milky bar, Rollo, Eclairs.

The products offered have a range of sizes and prices. The purpose is to target the
upper class and low end customers.
For Example:
Nestle Nesfruta Mango 200 ml Rs 25

Nestle Nesfruta Mango 1000 ml Rs 120

Nestle Nesfruta Apple 1 litre Rs 120

Nestle Nesfruta Apple 200 ml Rs 20

PRICE:
There are different pricing strategies that Nestle uses for its products and its variants.
The price is dependent on the market of each individual products. For example,
Nescafe and Maggi being the clear leaders are priced with higher margins for the
company as compared to competition. This is because the product quality is good
enough and a bit of skimming price will not cause the customer to switch brands.

COMPETITIVE PRICING: Majority of the products offered by Nestle are

provided at competitive pricing. Nestle Maggi, Nestle KitKat, etc are offered at
competitive prices in the market

SKIMMING PRICING: Products like Nestle A+ Slim, Nestle A+ Toned, and

Nescafe Coffee etc are few products which are offered are a price higher than their
competitors. These products are targeted towards individuals who are health
conscious and fitness enthusiasts and for that reason are priced dearer price.

PLACE:
Nestle products of the available all over the world. Due to its robust distribution
channel, Nestle has been able to make a huge impact in the global market. The
company has made sure that their products are available all over the world and the
carter to a huge customer base.

The products are available both in the urban and rural areas. We find that this has
helped in a way for the company. The places of distribution have made the products
available to a lot of customers and the, in turn, has generated a profit for the company
both in terms of customer base and the revenue

Nestle regularly introduces trade discounts and various tactics to keep the channel
motivated. The major challenge is in the distribution of Maggi which is the most in-
demand product along with Nescafe. Due to these two products, Nestle is able to
drive other products in the market as well. Thus, on purchase of one weak product,
the distributor might get a discount on the stronger product or vice versa.

The challenge for Nestle is in the chocolate segment where it faces stiff competition
from Cadbury and hence selling the chocolates becomes difficult.

PROMOTION:
One of the most widely known tunes is the Nescafe Basement. It was one of the best
advertising campaigns and was launched at least 2 decades back. However, that
campaign brought Nescafe strongly in the market.

On the other hand, Nestlé’s brand was pushed by the excellent product quality of
Maggi and the witty and innovative campaigns of Maggi. Where Nescafe focuses on
value and the good things in life, Maggi focuses on moments you had with your
Maggi. The recent campaign was completely focused on your Maggi story, where
people had to come out with various innovative ways that they had their Maggi.

Promotions for other products too is done smartly. KitKat focuses on “Take a break”
and has done some good marketing for the same. KitKat website too is very
innovative and shows nothing but asks the visitor to take a break and have a KitKat.
The major push expected of a FMCG company is in sales promotions at the ground
level. This is where Nestle really rocks. Nestle focuses on its strength which is Maggi,
Nescafe and KitKat which are the most promoted brands in the market on ground
level.