Marketing Plan: Nestle (Multan Zone)

By
Ashad Afzal (MBNBM-21-03)
Kiran Shareef (MBNBM-21-42)
Marwa Batool (MBNBM-21-28)
Qamar Hussain (MBNBM-21-12)
M. Awais Mehmood (MBNBM-21-03)
M. Ahsan Iftikhar (MBNBM-21-30)

MBA (NBE) Morning 2021-2023

2nd semester

Assignment submitted as partial fulfillment of the requirement of

course, Marketing Management

Institute of Management Sciences

Bahauddin Zakariya University Multan
 Table of Contents
1 Marketing Approach
1.1 Introduction
1.2 Mission and Vision
1.3 Major Competitors
1.4 Target Market
1.5 Strategies Nestle use to increase their market share
1.6 Positioning Strategy
1.7 Branding Strategy
1.8 4 P’s
1.9 Solutions
1.10 Future Plans

2 Changing of strategies and Successful Strategies

2.1 Marketing Strategies changed over time
2.2 Successful Strategy

3 Difference between practice and theory

4 Reference
1 Marketing Approach:

1.1 Introduction of company:

 Origin:
 Vevey, Switzerland
 Nestle history begins in 1866, with the foundation of the Anglo-Swiss Condensed Milk
Company. Henri Nestlé (Nestlé’s founder, German-born pharmacist) develops a
breakthrough infant food in 1867, and in 1905 the company he founded merges with

Anglo-Swiss, to form what is now known as the Nestlé Group. During this period cities
grow, and railways and steamships bring down commodity costs, spurring international
trade in consumer goods.
 Nestle Pakistan:
 Nestlé in Pakistan is operating since 1988 under a joint venture with Milk Pak ltd and
took over management in 1992
 The company’s strategy is guided by Nestlé’s Corporate Business Principles which are in
line with internationally accepted best practices and ethical performance culture.
 Nestlé Pakistan today is the leading Food & Beverages Company in Pakistan with key
focus on Nutrition, Health and Wellness and reaching the remotest of locations
throughout Pakistan to serve the consumers.
 Type of Industry:
 Fast Moving Consumer Goods (FMCG)
 70% business relevant to baby nutrition
 30% business relevant to food& Beverages

1.2 Mission and Vision:

Mission: Nestle mission of "Good Food, Good Life" is to provide consumers with the best
tasting, most nutritious choices in a wide range of food and beverage categories and eating
occasions, from morning to night.
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.

1.3 Major Competitors:

 Nestle is monopolistic in most of its products like Everyday, Cerelac, Nido, Nescafe
coffee, Fruita Vitals gold range like Red grapes
 Competition in infant nutrition with Pediasure and Ensure
 MilkPak competition with Olpers ( Olpers has a limited range and its main focus is on its
milk and they provide trade offers to retailers as well thus affecting the company
business. Also Olper’s milk is a great challenge for Nestle because of its thickness as
compared to Milkpak )
 Nesfruta juice competition Slice, Maza and Shezan
1.4 Target Market (Based on Milk substitute category)

Nestle target international, rural, and urban consumers of age 13 or greater including males and
females, both. Students, professionals, and employees can all be targeted as they all consume
Nestle's products, especially its Pure Life mineral water but based on milk substitute category the
target market of Nestle is 1-12 years old Children For them Nestle is offering NIDO, Nestle
BUNYAD, LACTOGEN, and NAN.

1.5 Strategies Nestle use to increase their market share:

In general, Nestle’s growth strategy had been to enter emerging markets early – before
competitors – and build a substantial position by selling basic food items that appeal to the local
population base, such as infant formula and condensed milk but now nestle increase their market
share by adopting these functions:

 Retailer Activation
 AVA (Availability, Visibility, Accessibility)
 Promoting activity of product on the basis of Weekly cycle
1.6 Positioning Strategy:
Through concentrated marketing, Nestlé earned a strong market position because of its very good
knowledge of consumer requirement. Nestle major focus while positioning their products are on
the delivery of product and the quality of product. Moreover, Nestle create relationship with
customers either by focusing on the consumers willing price

1.7 Branding Strategy:

Nestle branding strategies vary from product to product just like in juices, straw juice pack for
children and Tin pack for adults by recognizing customers but not only limited to that only and
keep many others important aspects of Product Quality, Advertising In social media, Product
Description, Keeping An Eye Upon Competitors, Host An Event Sharing, Customer Reviews,
Social Media Contest And Social Media Activities Advertisements under consideration.

1.8 4P’s:

Product:

Nestle have more than 2000 brands ranging from global icons to local favorites, and are present
in 186 countries worldwide. Nestle offer almost every different type of food and beverage!
everything from baby food and bottled water to cereal and healthcare nutrition products. Their
biggest brands include Nescafé, KitKat, Nespresso, Maggi, Toll House and Milo, Dry powder
and Fruita vitals.

 Nestle product categories

No. of Product Line Product mix/ Categories

Products
1 Dairy Every-day, Nourish Milk, Nourish-
Dahi, Everyday-Ghee, Grekyo
Yoghurt
2 Water Nestle Pure-Life, Acqua-Panna,
S.pellecrino, Perrier
3 Juices, Nectars & Fruit Drinks Fruita-Vitals, Nesfruita
4 Infant Nutrition Gerber, Nan-grow, Cerelac, Nedo

5 Breakfast Cereals
6 Culinary, chilled & frozen food
7 Coffee
8 Chocolate & Confectionery
9 Nestlé Professional
Plus
Fitness, Coco-Crunch, Nestle-Milo,
Gold Corn Flakes, Nesquik, Cheerios,
Lion-Cereals
Maggi, Herta, Thomy, Stouffers
Nescafe Classic, Gold, Latte, Iced-
Tea Nespresso,
Starbucks,
Kit-Kat, Smarties, Munch Aero, L’
Atelier, Milky bar, Baci, Quality-
Street
Nesta, Nestle Professionals, Docello,
Easy-Whip, Milk Pack, Hot vending
solution

These wide range of products from which few are discussed are the backbone of its
marketing mix strategy. Nestlé supports individuals and families to make tastier and
healthier choices with all the products they sell. They serve people to enjoy a healthy
diet, by adding more wholegrains, fiber and vegetables, as well as essential nutrients in
their products.

 Nestle create Brand value and Brand equity:

 With a great taste satisfaction
 By making numerous brand strategies
 By providing solution from baby feed to health care nutrition containing around 2000
products
 By mean of promotion, work lot on retailer Activation
 Hampering the emotions of consumers by showing family relations, the relation of a
mother-child, youth & life (full of energy) and a happy morning with their breakfast
cereals
Pricing:

 Nestle offer convincing price to their buyer to switch them to their company. While
making pricing strategy nestle observe the reactions of Distributor/Retailers like while
making everyday tea whitener pricing strategy. But nestle do not give huge price margin
to their retailers as compared to their competitors did. Because nestle believe in
enhancing the perceived quality of the product.
 We find many of the competitive products in the market which are less expensive as
compared to nestle but not so worthy. Take the example of Maggi. It is priced some bit
higher as compared to other instant noodles brands. It is because the perceived value of
the product is much better and customer can easily pay some extra money to get a better
quality.
 Mainly the pricing strategy for Nestle includes launching different SKU (Stock Keeping
Units) at various price points (line filling) to cater different customers.

Place:

 Channels used by Nestle to execute their distribution strategy:

 They follow a FMCG/CPG channel of distribution
 Production-Distribution-Retailer-Customer (Mostly used in South Punjab)
 Production-Distribution-Wholesaler-Retailer-Customer
 Ecommerce/Online Store: Baazar, Airlift, Jugnu, Daraz
 Nestle provide support to their intermediaries for partnering with them:
 There is a supplier portal, an online platform to help support nestle and supplier’s
effective collaboration. It provides suppliers with secure access to important processes
and tools. Through the platform, active suppliers can access information related to their
contracts as well as tools to manage bidding, ordering, delivery and payment activities.

Promotion:

 Considerations the Nestle consider while developing advertising strategies

 Local area language, norms, and values
 Social Class
  As much it can to identify and satisfy the unmet needs of the customers. Like nestle offer
CereLac-essential at 15 rupees in local areas.
 Nestle always come up with a unique promotion strategy.  Nestle focuses on extensive
advertising and marketing for its individual brands and products. Like they brought
Nescafe tunes which are still talked about it. Maggi which they associated with 2
minute’s snacks which can easily be prepared by the mothers. This made it pretty famous
among the kids and mothers. They have always focused on the quality and nutritional
values of the products.  In case of KitKat a clear marketing message of Have a Break,
have a KitKat.
 Nestle’s online and social media marketing during covid-19
 We did consumer connects with individuals
 From nestle supply chain, to their factories, and right through to consumer homes
 By using promotion campaign (Ab Rukta Kon Ha).
 More feedbacks

1.9 Solutions:

 Nestle providing the solutions:

 Quality & Safety of life (Good Food, Good Life)
 Nutritious diet
 An immediate respond to any consumer inquiry, question or concern

1.10 Future Plans:

 Do you have any plan to introduce a new product in future?

 Fizzy Beverages: Sparkling-Two Flavors:
1) Pomegranate
2) Apple

2 Changing of Strategies and Successful Strategy

Nestle has come a long way from being a condensed milk seller to a global giant. The
company focused on aligning its marketing strategy with its vision and stayed committed to
it. Because of this, Nestle has survived two centuries of struggle, fought tough competition,
 and built an empire. There are nine marketing strategies Nestle employed to carve its way
into the international market.

By adopting a diverse portfolio, offering multiple price strategy, product mix strategy,
product driven advertising, brand equity, co-branding, culture understanding, sustainability
and clear vision and consistent goals.

2.1 Marketing strategies changed over time:

 Technical surveys based on statistics

 National Nutritional survey: Nestle Bunyad: Iron deficiency in every one child out of two
2.2 Successful strategy:
 Jam-e-sheerin with Milkpak in Ramadan
 Sales of Milkpak increased by 30 percent
 Ramadan month sale more than every 11 months sale

3 Difference between practice and theory:

4 Reference:

Waseem Bashir
Sales Promotion Executive
Email: waseem.bashir@pk.nestle.com
Contact Number: 0305-2073230