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Submitted To: Mr. Jawad Saleem

Submitted By: Ali Ashfaq M. Javeed Sardar Moazzam Riaz Muneeb Akram Kashif Ali

TABLE OF CONTENTS

PREAMBLE 3 MARKET 5 MARKET DEMOGAPHICS 5 INDUSTRY ANALYSIS 6 MISSION STATEMENT 6 VISION STATEMENT 7 ORGANIZATION PORTFOLIO 8 NESTLE¶S HISTORY AND INNVATIONS 12 First came infant and milk nutrition 13 CONTRIBUTION TO OTHER SECTOR 15 REGIONAL SALES OFFICES 18 RATIO ANALYSIS is useful essentially for: 19 Competitor Analysis 20 WATER 21 NESTLÉ Pure Life ± PET Bottles 21 NESTLÉ Pure Life ± Home & Office Service 21 AVA & FONTALIA 21 NESTLÉ PURE LIFE & BULK WATER 22 SEGMENTATION STRATEGY 22 TARGET MARKET 23 POSITIONING 23 INDUSTRIAL SWOT ANALYSIS 23 SWOT ANALYSIS 24

MARKETING MIX 25 1-PRODUCT 25 PRODUCT TYPE: 26 PRODUCT ATTRIBUTES: 26 BRAND NAME: 26 BRAND POSITIONING: 26 BRAND IMAGE: 26 BRAND EXTENSION: 26 PACKAGING: 26 LABEL: 27 2-PROMOTION: 27 3-PLACE: 28 4-PRICE: 28 STRATEGIES FOR CREATING COMPETITIVE ADVANTAGE 29 DIFFERENTIATION STRATEGY: 29 OVERALL EXCELLENCE STRATEGY: 29 CONSUMER ANALYSIS 30 SUGGESTIONS 31 PREFERENCES 32 .

This situation demands energetic. and capable of meeting the challenges of modern business environment. location. services and information . In this project we discussed how started workings what are the objectives and goals of the organization nestle and what are the products and services offered by the company to its target customers.PREAMBLE Praise to be Allah Almighty. Today it is impossible for a common man to run the business especially in this period of competition. duly qualified experienced business administrators who could meet the challenges of this age of modernization. We made a marketing plan for ´NESTLE PURE LIFEµ that how the marketing share of this product can be increased what strategies should use for this purpose. We elaborate all the aspects of the marketing plan in this project. PAK AIMS produce management specialists fully aware of the ins and outs of the business management. range. the one testing us all at all times and making decisions about what we don·t know and can·t know. types and variety of human communities yMarket is any structure that allows buyers and sellers to exchange any type of goods. geographic scale. MARKET yMarkets may be any of a variety of different systems yMarkets vary in size.

933) y65 years and over: 4.9% (male 48.256.314) y15-64 years: 56.1% (male 3.062.000 population yNet migration rate: -1.293.298.yMarket facilitates trade and enables the distribution and allocation of resources in a society yMarkets allow any tradable item to be evaluated and priced MARKET DEMOGAPHICS yPopulation: 180.000.000 population yDeath rate: 8 deaths/1.434. female 3.000 populations y0-14 years: 40% (male 33.74 births/1.000 yGrowth rate: 1.828% yBirth rate: 27. female 31.065.214.428.522) INDUSTRY ANALYSIS yPOPULATION 180000000 yRURAL 116916480 yURBAN 63083520 .542.24 migrant(s)/1. female 46.

For nutrition and pleasure. VISION STATEMENT We envision Nestlé to grow in the shortest Possible time into the number one food company in Pakistan with the unique ability to meet the needs of consumers of every age group from infancy to old age. throughout their lives. With our unique experience of anticipating consumers¶ needs and creating solutions. Nestlé contributes to your well-being and enhances your quality of life.yPEOPLE WITHOUT WATER 44% yBOTTLE WATER USAGE 9% yPEOPLE WITHOUT BOTTLE WATER 91728000 yTOTAL TARGET MARKET 9072000 MISSION STATEMENT Nestlé is dedicated to providing the best foods to people throughout their day. throughout the world. through development of a large Variety of food categories of the highest quality We envision the company to develop an extremely .

BRANDS: Nestle offers a variety of brands of which the most well known are Nescafe. to continue Playing our due role in the social and environmental Sectors of the country ORGANIZATION PORTFOLIO ESTABLISHMENT: Nestlé was founded in 1866 by Henri Nestlé with headquarters in Vevey. Switzerland. which Would drive growth through innovation and renovation We aspire.Motivated and professionally trained workforce. as a respected corporate citizen. . Nestlé Kit Kat. It has employed around 250. Nestlé juices and Nestlé bottled waters.000 people and has factories or operations in almost every country in the world. COMPANY TYPE: It is one of the world's biggest food and Beverage Companies.

Near East. Valvert. whatever their needs. Wherever it is to be found around the world. Uzbekistan and the United States. yMagnesium: necessary for muscle contraction and transmission of pulses. followed by Argentina. Today the Nestle Pure Life brand is present in 20 countries around the world. BRAND PORTFOLIO In 1992. The Company's priority is to bring the best and most relevant products to people. In 2001. wherever they are. Quality and Service. Jordan.Nestlé·s existing products grow through innovation and renovation while maintaining a balance in geographic activities and product lines. the Philippines. In 1998. South and North America and Europe. making it suitable for the whole family. China. and Mexico in 2000. Nestle PURE LIFE offers an ideal balance between a healthy supply of minerals and a pleasant. Nestle PURE LIFE answers some crucial consumer needs. Egypt. and in 2002. It contains essential minerals such as: yCalcium: necessary for building strong bones and teeth. focused on three core pillars: Trust. . for the first time in its history. Today Nestlé Water is established in 130 countries and markets about 70 different brands. refreshing taste.Asia. throughout their lives. Nestlé associated its name with bottled water ´Nestlé Pure Lifeµ. Thailand. and Lebanon followed. India. across all continents . The brand was launched in Pakistan and soon appeared in Brazil. Nestlé was the first company to dare to launch a mineral water.

including the famous 'Mozartkugeln'. . 1997 Nestlé.COMPANY FROM FOUNDATION TILL NOW 1866 Company's foundation 1905 Merger between Nestlé and Anglo-Swiss Condensed Milk Company 1929 Merger with Peter-Cailler-Kohler Chocolate Suisse's S. 1998 Nestlé acquires Spillers Petfoods of the UK and strengthens position in the petfood business which began in 1985 with the acquisition of the Carnation Friskies brand. through the Perrier Vittel Group. 1947 Merger with Alimentana S.A. (Maggi) 1971 Merger with Ursina-Franck (Switzerland) 1985 Acquisition of Carnation (USA) 1988 Acquisition of Buitoni-Perugina (Italy) 1988 Acquisition of Rowntree (GB) 1992 Acquisition of Perrier (France) 1995 Nestlé acquires Victor Schmidt & Söhne.A. expands its mineral water activities with the outright acquisition of San Pellegrino. Austria's oldest producer of confectionery.

founded in 1866 by Americans Charles and George Page. began experimenting with various combinations of cow's milk. Farine Lactée Nestlé was being marketed in much of Europe. the Anglo-Swiss Condensed Milk Company.. I cannot have a different trademark in every country. NESTLE¶S HISTORY AND INNVATIONS: The key factor which drove the early history of the enterprise that would become The Nestlé Company was Henri Nestlé's search for a healthy.1999 Divestiture of Findus brand (except in Switzerland and Italy) and parts of Nestlé's frozen food business in Europe. wheat flour and sugar in an attempt to develop an alternative source of infant nutrition for mothers who were unable to breast feed. broadened its product line in the mid1870s to include cheese and infant formulas. after Nestlé's new formula saved the child's life and within a few years. His response was firm: "I regret that I cannot allow you to change my nest for a Swiss cross . The two companies remained fierce competitors until their merger in 1905. economical alternative to breastfeeding for mothers who could not feed their infants at the breast. . 2000 Acquisition of Power Bar. People quickly recognized the value of the new product. responded by launching a condensed milk product of its own. He called the new product Farine Lactée Henri Nestlé. Nestlé's first customer was a premature infant who could tolerate neither his mother's milk nor any of the conventional substitutes. anyone can make use of a cross.." Meanwhile. Henri Nestlé also showed early understanding of the power of branding. Nestlé means 'little nest'. Divestiture of Hills Bros. a trained pharmacist. MJB and Chase & Sanborn roast and ground coffee brands (USA). but no-one else may use my coat of arms. His ultimate goal was to help combat the problem of infant mortality due to malnutrition. and had been given up for lost by local physicians. The Nestlé Company. In the mid-1860s Nestlé.. which had been purchased from Henri Nestlé by Jules Monnerat in 1874. in Swiss German. One of his agents suggested that the nest could be exchanged for the white cross of the Swiss flag. He had adopted his own coat of arms as a trademark.

in Vevey. His name and the Nestlé symbol (Nestlé means ´little nestµ in German) were guarantee of the consistent quality of his product. In 1882 Swiss miller Julius Maggi created a food product utilizing legumes that was quick to prepare and easy to digest. yCailler . the result of painstaking scientific research. due mainly to the lack of an appropriate breast-milk substitute. and sauces and flavorings. In 1886. The company expanded in 1929 through the acquisition of the. In 1875 Vevey resident Daniel Peter figured out how to combine milk and cocoa powder to create milk chocolate.µ. started a company that quickly became the world's leading maker of chocolate and later merged with Nestlé. was developing his infant cereal ´Lactous Farina Nestlé ´launched in 1867. Then came product diversification Contacts with other leading companies that have innovative ideas led to acquisitions and diversifications.. a highly perishable raw material. The former had developed a successful long-life product from fresh milk. his infant cereal respond to a real need. The two companies merged in 1905 to become the ´Nestlé & Anglo-Swiss Condensed Milk Co. By the turn of the century.Some other important firsts occurred during those years. whilst Henri Nestlé had achieved international acclaim due to the remarkable qualities of his invention. a friend and neighbor of Henri Nestlé. Henri Nestlé. Peter. Given the highly infant mortality rate. his company was producing not only powdered soups. His instant pea and bean soups helped launch Maggi & Company. but bouillon cubes. while the Page brothers in Cham were building Europe·s first condensed milk factory. for the Anglo-Swiss Condensed Milk Co. First came infant and milk nutrition Innovation and an entrepreneurial spirit have been Nestlé characteristics from the start.

Yes (1979). for example. . made possible the huge success of the Nescafe launch in 1938. Subsequent acquisitions opened doors to new areas. At the same time. NAN (1962). Nestea (1944). reseat at Nestlé resulted in the development of new products such as Milo (1934). 1985). 1962). Nesquick (1948). Frozen foods (Findus. Chocolate and confectionery (Rowntree. Nestlé accumulated knowledge. Mineral water (Vittel. 1988). Others reinforced the company·s position in established areas. 1969) Pet care (Carnation. Followed in 1947 by the Maggi group and its culinary products Thus Nestlé became the heir to inventions such as Daniel Peter·s milk chocolate (1875) and Julius Maggi·s vegetable-based soups (1884) and stock cubes (1908). as well as the perseverance and competence of scientists like Max Morenthaler. 2000). such as Preserves (Crosse & Blackwell 1960). Italian cuisine (Buitoni.yPeter and yKohler chocolate companies. 1988) Performance foods (PowerBar.

Nespresso (1986). LC (1994) and Nestlé Pure Life (1998). Nestlé is the world·s leading food company. Nestlé remains sensitive to culinary and eating habits. CONTRIBUTION TO OTHER SECTOR Social . Its international R&D network supports the products made in 479 factories in 81 countries. Today and tomorrow a company that cares about consumers al around the globe Today. Existing products such as Nescafe. Being a company dedicated from the start to food. Maggi culinary products or the various dairy products have been constantly improved and adapted to current consumer life-styles. and responds to specific nutritional problems. whilst also setting and matching new trends such as growing out-of-home consumption.

308 Upper Mall. Lahore Registered & Corporate Office PABX : (042) 5757082-95 Fax : (042) 5711820 Sheikhupura 29th Kilometer. Environment Another key area where the company is proud to make a contribution in the environment is by making available the processed and packaged dairy.Sheikhupura Road Sheikhupura. Lahore. Kabirwala District Khanewal. the company has created over 1200 permanent job opportunities for the skilled. Pakistan Phone : (06512) 411433-36 Fax : (06512) 411432 . unskilled and professional manpower. Pakistan Kabirwala Factories Khanewal ² Kabirwala Road. Punjab. apart from hundreds of contractual jobs. It has also played a remarkable role in expansion and vitalization of the dairy and livestock sector.In the social sector. Punjab.

(Chartered Accountants) Legal Advisors Cheema & Ibrahim (Advocates) ABN AMRO Bank Bank of Tokyo-Mitsubishi Ltd. Ferguson & Co. Habib Bank Ltd. Muslim Commercial Bank Ltd.Auditors A.G.A Credit Agricole Indousuez Bankers Deutsche Bank A. Citibank N. Standard Chartered Bank. .F.

Phone : (021) 5833935-6 Fax : (021) 5833937 178. Pakistan. Karachi. Sind. Hyderabad. Block 7. Karachi Hyderabad Phone : (0221) 860403 Fax : (0221) 863202 29-b. 5752582 Fax : (042) 5761491 . Sind. Pakistan Lahore Phone : (042) 5754335-6. Lahore. Pakistan. Main Gulberg. Block C.REGIONAL SALES OFFICES F-77/1. KDA Scheme 5. Punjab. Clifton. Unit 2 Latifabad.

F. 734538 Fax : (041) 543538 23. Pakistan Phone : (091) 840859.P. Pakistan. Punjab.C. Opposite Askari Park Quetta. Road. Faisalabad Gujranwala Phone : (0431) 256320 Fax : (0431) 256320 201.Surij Miani Road. Baluchistan. Block B. Pakistan Phone : (041) 546993. Pakistan. People¶s Colony Faisalabad. Peshawar. Pakistan. Jamrud Road. Chungi No. Small D Ground. 43901 Fax : (091) 45516 63 B ± D. 1. Phone : (081) 834887 Fax : (081) 822297 Peshawar Quetta . Gujranwala. 842415. Multan. D.W. 271-A. Punjab. Multan Phone : (061) 515061 Fax : (061) 515057 Al Haq Plaza. Punjab. Chaman Housing Scheme. 2nd Floor City Tower. N.

2824328 Fax : (051) 2821899 RATIO ANALYSIS is useful essentially for: Investors Assessment of earnings and dividend prospects. The ratio analysis can be divided into three broad categories: The Solvency Ratios. Determination of the entity's financial strength to carry social and developmental programs. Growth in economic value of investments with respect to the risks undertaken. 1st Floor. Pakistan Islamabad Phone : (051) 2271874-5.74-W. Proper utilization of assets financed. Blue Area. THE ANALYSIS The financial ratios discussed here are those which are derived simply and directly from financial statements. . These ratios are used in analyzing the financial statements in ordinary course of business activity. The Efficiency Ratios. Islamabad. Government's concern Evaluation of the economic contributions of the business entity. Debt coverage. Bankers/Creditors concern Assessment of the ability of the business to service its debt obligations. Yaseen Plaza.

The Profitability Ratios. Competitor Analysis ‡ NESTLE ‡ Aquafina ‡ Sufi ‡ Kinley ‡ Other ‡ TOTAL SHARE ‡ 9072000 ‡ TOTAL SHARE OF COMPETITORS ± NESTLE 2903040 ± AQUAFINA 1995849 ± SUFI 453600 .

and safe water and has successfully dominated a key strategic business NESTLÉ Pure Life ± Home & Office Service In 2000.± KINLEY 1451520 ± OTHER 2268000 WATER NESTLÉ Pure Life ± PET Bottles The year 2001 saw the successful completion of three years of outstanding business for NESTLÉ Pure Life ² PET Bottles of 0. Nestlé acquired major share holdings in both these businesses in 2001. healthy. The brand has revolutionized the Pakistani market by tapping the real consumer need for pure. The exceptional brand success was the result of expanding national distribution and an increasingly loyal customer base. AVA & FONTALIA To expand its H&O water delivery business countrywide. both in PET and H&O services . While AVA is an important national player in the branded bottled water category. Successful marketing and sales strategies offer greater convenience and better value to the consumers.5 liters. which has substantially grown ever since and has come to dominate the 5. NESTLÉ Pure Life established a successful Home and Office (H&O) delivery service in Lahore.5 and 1. The brand is poised for strong growth in future.gallon market.

Other than that. It has been launched in 11 markets internationally with its lead and best performing market being in Pakistan. the pioneer and lead French Brand in the water market. Rather all the water brands at Nestlé have to report to Perrier Vittel. The reporting of Nestlé Pure life is not directly under the Nestlé headquarters at Vevey. At the same time Pakistan became the first country where Nestlé launched this new worldwide brand. This marks Nestlé Milkpak's entry into the country's fastest growing water market.NESTLÉ PURE LIFE & BULK WATER The launch of Nestlé Pure life in December 1998 was a truly historic event. all the research concerning the contents is carried out at the Research Center at Vevey. Switzerland. SEGMENTATION STRATEGY ‡ Psychographic Segmentation ‡ Demographic Segmentation ‡ Geographic Segmentation ‡ Behavioral segmentation TARGET MARKET ‡ Targeting Strategy Of Nestle Pure Life Is Differentiated Marketing ‡ Nestle Pure Life Targets Both Genders ‡ Targets The Upper And Middle Class People Who Are Health Conscious ‡ Tourists Are Also The Target Market Of Nestle Pure Life POSITIONING .

.‡ Newly Drinking Water With Safety And Security ‡ Pure Water Pure Relationship ‡ Safe And Healthy Drinking Water ‡ Public Awareness Message INDUSTRIAL SWOT ANALYSIS Strengths ± the lifestyle of the people is changing ± DEMAND is increasing day by day in the bottle Water Weaknesses ± the lack of awareness and the poverty ± the lack of availability in the remote areas is also the strong reason Opportunities ± people are becoming more health conscious Threats ± Low Entry Barrier ± Economical Uncertainty SWOT ANALYSIS Strengths: ‡ High Quality Obtained By The Usage Of A Special Production Process.

contributing to daily mineral requirements. Opportunities: ‡ Water Is An Essential Part Of Life And Everyone Prefers To Drink Safe And Healthy Water. Weakness: ‡ Nestle Pure Life Is Relatively Expensive Than Other Brands.‡ Own Industrial Laboratories That Perform Constant Control For Physical-chemical And Bacteriological Parameters. Pure and Safe Nestle PURE LIFE refills your body with water to maintain a good level of hydration. ‡ Nestle Is A Trusted Brand For Providing Good Quality Products. Threats: ‡ Tough Competition From Aquafina And Kinley. It provides a balanced mineral formula (on average 150-170 mg per liter). ‡ Daily Sensor Water Analysis for Flavor. Color And Odor. Close To The Consumer. not more . ‡ Great And Neutral Taste Which Suits All The Family ‡ Safety And Purity From The Source To The Consumer ‡ Produced Locally. Structure of water Mineral Component Concentration. MARKETING MIX 1-PRODUCT: Nestlé Pure Life is drinking water that has been treated and rematerialized using a standardized industrial process to ensure purity and quality.

6 mg/l Mg-eq/l 3 PRODUCT TYPE: It is a consumer product and a convenience good. BRAND POSITIONING: Premium drinking water BRAND IMAGE: Safe and healthy water BRAND EXTENSION: Nestle is soon introducing flavored water in lemon. PRODUCT ATTRIBUTES: Nestle Pure Life is a pure. orange. .General mineralization (mg/l) Calcium Magnesium Potassium Bicarbonates Fluorides Hardness 220 mg/l 40 mg/l 15 mg/l 20 mg/l 60 mg/l 0. safe and healthy. colorless and odorless drinking water with a pleasant taste. raspberry and strawberry flavors. BRAND NAME: Nestle Pure Life. Packaging is innovative to meet the individual needs of consumer all over the world. PACKAGING: Nestlé PURE LIFE is available in a wide variety of packaging formats to suit all consumer needs and consumption occasions.

logo. 2-PROMOTION: Nestle Waters Coolers has been a part of Nestle Waters since 2003 and represents Nestle Pure Life brand. to the family size bottle (1. Moppies are also used for advertisement in these stores. P.13. so that the consumer can immediately define.9l) for in-home and office usage. pole signs and posters. Market prices of individual consumables (0.33l to 0.E. Prices of Nestle Pure Life are relatively higher than their competitors. that the product was delivered from the factory. Nestlé Pure Life·s originality lay in the use of an all-new plastic.33l to 0.The range of formats extends from the individual bottle for on-the-go consumption (0. 3-PLACE: Nestle Pure Life is a convenience good and is frequently used therefore it has been placed on all big and small stores to make it available everywhere.T. is recyclable. They are using television and radio advertisements in electronic media. Its proprietary design equally protects the brand from counterfeiting.10 and Rs. Consumer service number is mentioned and stamp of PSQCA with license number is also mentioned.T. The price of family size bottle (1. LABEL: The label provides information like quantity. The pricing strategy of Nestle Pure Life is market skimming.5l).5l) is Rs. combining the benefit of a local production and the strength of a worldwide brand.5l) and on to larger formats of 5 gallons (18. The type of placement used for nestle pure life is spot exchange. Besides. P. In summers direct marketing is used for promotion by providing cool points of Nestle Pure Life where chilled Nestle Pure Life is available for instant drinking. 4-PRICE: Nestle pure life is following brand pricing through which it provides functional and psychological satisfaction to its target customer. In big departmental store they have display corner in which Nestle Pure Life is refrigerated.9-liter bottles have a protective cover. Service quality has always been the main driver of HOD business.24 and of large bottles of 5 gallons (18. mineral contents. In print media they are using billboards.E. Nestlé PURE LIFE is bottled when possible in the country. manufacturing date and best before date. Nestle PURE LIFE 18. or at least in the region where it is sold. (polyethylene teraphthalate). newspapers.130 .5l) are Rs.9l) is Rs. which is stronger and more elastic than the PVC.

then Growth Maturity Decline Mass Market Increasing Rapid Mass Market Intense Slow/no Loyal Customers Decreasing Declining . This is a very important competitive advantage of Nestle Pure Life. Introduction Characteristics Customers Competition Sales Innovators Little if any Low levels. OVERALL EXCELLENCE STRATEGY: Nestle is a trusted brand and its products are consider to best and of very high quality world wide.PRICE PRODUCT PROMOTION PLACE MARKETING MIX STRATEGIES FOR CREATING COMPETITIVE ADVANTAGE DIFFERENTIATION STRATEGY: They have developed a very visible image of their water that it is safe and healthy and is ´PURE LIFEµ in true sense.

then at peak annual growth Declining annually Low/none Profits Marketing Implications Overall Strategy Costs Product Strategy Pricing Strategy Distribution Strategy Promotion Strategy None Market Development High per unit Undifferentiated Most Likely high Scattered Category awareness Market Penetration Declining Improved items Lower over time Intensive Brand Preference Defensive Stable or increasing Differentiated Lowest Intensive Brand Loyalty Efficiency Low Pruned Line Increasing Selective Reinforcement CONSUMER ANALYSIS Motivational factors to buy nestle .rising Growth Strong.

‡ Nestle Pure Life should communicate the benefits of drinking it.20l water glass of Nestle Pure Life which should be provide on cool points in summer.‡ When you use bottled water? yBuy preferences SUGGESTIONS ‡ They should introduce 0. . ‡ They should set the price of their product in accordance with their competitor¶s price. ‡ Now a day. they are not advertising properly therefore they should focus on more advertisement so that they could create strong brand loyalty among customers.

20l water glass of Nestle Pure Life which should be provide on cool points in summer.Google.nestle.htm .com file:///C:/Documents%20and%20Settings/mms@/Desktop/Report%20on%20Nestle%20Water%20Mark eting%20Strategy. ‡ Now a day. they are not advertising properly therefore they should focus on more advertisement so that they could create strong brand loyalty among customers. PREFERENCES yMuhammad Adeel Aman Khan.com yEconomy survey of Pakistan 2008 ywww.‡ They should introduce 0. ‡ They should set the price of their product in accordance with their competitor·s price. Sales Manager Nestle ywww. ‡ Nestle Pure Life should communicate the benefits of drinking it.