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Marketing Strategy of Nestlé (Nestlé Pure life)
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Executive Summary

Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals. While strategy is the action plan to do something and hence, Marketing Strategy is the managerial process of developing and maintaining a viable fit between the organization’s objectives, skills and resources and its changing market

opportunities. The aim of marketing strategy is to shape the company’s business and products so that they yield targeted profit growth. Nestlé Pakistan Limited is selected to study that how they have planned their marketing strategy for Nestlé Pure Life (water). Nestlé is a multinational food company and offering Fast Moving Consumer Goods (FMCG). The motto of Nestlé is “Good Food, Good Life”, so delivering the qualitative products to the customer is their main objective. It is offering 75 brands of bottled waters worldwide. Nestlé Pure Life (NPL) is one of them that was first offered in Pakistan by Nestlé Pakistan Limited in 1998. People felt need of Pure, safe and clean water because of impurities in water especially in the industrialized cities like Karachi, Lahore, Faisalabad etc. Nestlé identified this opportunity and lunched NPL that satisfied the customer needs and Nestlé become market leader in the water industry. The customers of NPL showed interest on NPL because of trust on Quality of Nestlé, at the heart of which there are qualitative products and its long term commitment to deliver better products to consumers. Being the market leader, the market share of NPL is 78% that is much higher than its competitors. NPL is passing through its Growth stage (of Product Life Cycle) i.e. its sales are increasing tremendously

and competitors are entering in the market like Aqua Fina by Pepsi and Askari Waters. There are different SKU’s of NPL to cover a wide market needs like for Home and office delivery there are 3gallon and 5 gallon bottles (bulk usage) and for day to day usage easily carrying light weight like “1.5, 0.5, 0.2 liters” bottles are available in the market. Still Nestlé is working on bringing the changes and innovation in this field. For this it has close relationship with its suppliers and distributors to get their suggestion to improve the quality of NPL. Nestlé Pakistan also has the Customer Service Department with the logo "Talk to Nestlé" in Lahore to receive the complaints and suggestions from the customers. In this way Nestlé analyze its market and becomes aware of the new market trends. Marketing strategy include 4 P’s strategy i.e. Product, Price, Place and Promotion strategies. Product is something that is offered to the market. NPL product strategy studies show that they are positioning the product with respect to its attributes that NPL is safe, pure, refreshing and healthy water. Nestlé also does product line expansion; recently it has offered a 0.25 liter bottle of NPL in the market. It’s also using the company name with its product name i.e. Nestlé Pure Life. NPL round shape and elegance of

the bottle are instantly recognizable. Quality is cornerstone of NPL success. Nestle people say: “Quality is our more successful product and it is key to our success today and tomorrow.” In Price strategy, Nestle has adopted the strategy of nonprice competition. It is offering one price for NPL to all cities of Pakistan. It also keeps the check on distributors to maintain single price of NPL. It offers trade discounts to its distributors. Placement is the distribution of the product to its customers at right time, in right quantity, at right price and at right place. To ensure this, channel adopted by the Nestlé for distribution of NPL is as follows: Producer Wholesaler Retailer Consumer NPL comes under the category of FMCG, so for this the timely supply is very important that’s why Nestlé is following intensive distribution strategy. Promotion is the very important and crucial element of marketing strategy as through it the company establishes its image in the minds of the customers. NPL is promoted by using different ways of promotion. Advertisement of NPL is done through TV, radio, billboards, newspapers and magazines. Current advertising slogans are that NPL is trust, hope and happiness and JIYO! Kay yahi hay Zindagi. Nestlé also conducts the tradeshows, concerts, events,

sponsorships, and discounts for sales promotion. For establishing public relations, Nestlé distributes its newsletters, annual reports, calendars and diaries, lobbying, donation for charitable and civic events. For the victims of 8th October 2005 earthquake, Nestlé has donated 90 trucks, which were containing different foods items, and NPL was one of them which is around Rs. 2 Billion. The Nestle organized its teams to distribute products to the effected areas and all employees contributed from top to bottm (MD himself was involved personally to distribute products physically)
2.1 Introduction

Food is core element in our daily lives. Not only does it enable us to survive, but approprate amounts and quality also help to ensure a better standard of living by contributing to our health and wellness. Consumer needs and expectations associated with a particular food product are not fixed, but change with time and according to geographic region, culture and the various stages of life. Ever since its foundation in 1866, Nestlé’s goal has been to keep in step with this constant process of change. It reacts to new consumer requirements with innovative and continually renovated products, and implements new scientific findings in tasty foods.
Mission Statement

although in certain areas. legislation is the most effective safeguard of responsible conduct. • Nestlé believes that. Therefore recruitment of the right people and ongoing training and development are crucial. beliefs and actions of the Company behind brands in which they place their trust. conduct and the responsible attitude of its management and employees. additional guidance to staff in the form of voluntary business principles is beneficial in order to ensure that the highest standards are met throughout the organization. employees. • Nestlé is conscious of the fact that the success of a corporation is a reflection of the professionalism. and that without its consumers the Company would not exist. Good Life”.Nestlé's business mission is to manufacture and market the Company's products in such a way as to create value that can be sustained over the long term for shareholders. consumers. Objectives • Nestlé does not favor short-term profit at the expense of successful long-term business development. . and business partners. Motto of Nestlé is “Good Food. as a general rule. • Nestlé recognizes that its consumers have a sincere and legitimate interest in the behavior.

Farine Lactée Henri Nestlé was being sold in much of Europe. 1905-1918 . (Henri Nestlé. He said. thus laying the foundations of today’s concept of nutrition. He was also able to offer his food – to convalescent and elderly people. High infant mortality rates. after Nestlé's new formula saved the child's life. 1869) People quickly recognized the value of the new product. were the motivation behind Henri Nestlé’s invention of Farine Lactee. “ The thought that my invention could save the lives of so many children counted enormously. and soon.• Nestlé continues to maintain its commitment to follow and respect all applicable local laws in each of its markets.2 History (The story of Nestlé: From nutrition to wellness) 1866 -1905 In the 1860s Henri Nestlé. a pharmacist. and the lack of suitable replacement foods for babies with no access to breast milk. developed a food for babies who were unable to breastfeed. His first success was a premature infant who could not tolerate his mother's milk or any of the usual substitutes. 2. the financial gain was not the prime motivation“.

In 1905 Nestlé merged with the Anglo-Swiss Condensed Milk Company. Nestlé's production had more than doubled. streamlining operations and reducing debt. Germany and Spain. particularly Latin America. By the end of the war. Ironically. Profits dropped from $20 million in 1938 to $6 million in 1939. By the early 1900s. Nescafé. the company was operating factories in the United States. Factories were established in developing countries. In 1947 came the merger with Maggi seasonings . which was a staple drink of the US military. The 1920s saw Nestlé's first expansion into new products. Nestlé's management responded quickly. with chocolate the Company's second most important activity 1938 -1944 Nestlé felt the effects of World War II immediately. the war helped with the introduction of the Company's newest product. 1944 -1975 The end of World War II was the beginning of a dynamic phase for Nestlé. Britain. Growth accelerated and companies were acquired. However. World War I created new demand for dairy products in the form of government contracts. 1918 -1938 After the war Government contracts dried up and consumers switched back to fresh milk. Nestlé's production and sales rose in the wartime economy.

Nestlé Pakistan Limited . a USD 2. Nestlé merged its U. Nestlé made its second venture outside the food industry by acquiring Alcon Laboratories Inc. Since 1996 there have been acquisitions including San Pellegrino (1997). and in August. 1975 -1981 Nestlé's growth in the developing world partially offset a slowdown in the Company's traditional markets. Spillers Petfoods (1998) and Ralston Purina (2002). There were two major acquisitions in North America. Nestlé's improved bottom line allowed the Company to launch a new round of acquisitions. as did Findus (1963).6bn acquisition was announced of Chef America.S. In 1984. 1981 -1996 Nestlé divested a number of businesses1980 / 1984. ice cream business into Dreyer's. Diversification came with a shareholding in L'Oréal in 1974. the most important being American food giant carnation. both in 2002: in July. Crosse & Blackwell followed in 1960.and soups. 1996+ The first half of the 1990s proved to be favorable for Nestlé: trade barriers crumbled and world markets developed into more or less integrated trading areas. Inc. Libby's (1971) and Stouffer's (1973).

at Sheikhupura commenced operations in 1981 as a producer of UHT milk.a company of Swiss origin headquartered in Vevey. wherever and however. Pakistan with the name of Nestlé Milkpak Limited but its name has been changed and now it is called Nestlé Pakistan Limited. is a food processing company.. while another one at Karachi is already for production. which is registered on Karachi and Lahore stock exchanges. It established its first production unit in 1988 in Sheikhupura. took a major participation in Pakistan Ltd.A. By 1988 it had expanded its operations to producer butter. it ensures that its products are made available to consumers whenever. Headquartered in Lahore. In 1988. cream. Through its effective marketing and a vast sales and distribution network throughout the country. Switzerland. desighee all under the brand name MILKPAK and fruit drinks under the brand name FROST. Two of its factories in Sheihupura and Kabirwala are multi product factories.Nestlé Pakistan Ltd. under the name of Milkpak Ltd. the Company operates five production facilities. Sheikhupura Factory The production facility. One factory in Islamabad and two in Karachi produce bottled water.A. After Nestlé S. Nestle Pakistan is a subsidiary of Nestle S. the Pakistan factory at Sheikhupura .. Switzerland.

flexible confectionery line (TOFFO and SOOTHERS).became a part of the joint venture under the name of Nestlé Milkpak Ltd. During these years a variety of variants of different products were also introduced as a part of expansion of products portfolio. This was followed in subsequent years by the installation of production lines of infant formulae (LACTOGENs). PINE APPLE. fruit drinks (FROST). it can store up to 8300 pallets. specialized infant formulae(NAN 1 & 2). tea whitener (EVERYDAY). Spread over 6614 sq uare meters. APPLE. MANGO). Kabirwala Factory . bottled water (NESTLE PURE LIFE). Soon afterwards in 1990 the milk powder plant was established to produce powder milk (NIDO). a National Distribution Center (NDC) was constructed in 2000. plain and fruit yogurt. To meet the needs of safe storage for the ever expanding product range and their increasing volumes. juices (ORANGE. chocolate drink-powder (MILO) growing up milk (NESLAC). sugar confectionery (POLOMint). coffee (NESCAFE). ready to drink chocolate drink (MILORTD). approximately 8000 tons.

2. The desi ghee plant was relocated form Sheikhupura Factory and its capacity was doubled. followed by a mil powder plant for NIDO and GLORIA whose capacity was subsequently increased several times. Then came a new butter line for producing bulk and cultured butter. A dry milk line was installed for tea whitener powder (EVERYDAY) and the milk powder plant was modified to produce NIDO enriched with vitamins and minerals. A National Distributions Center and an Occupational Health Center were established and a new incinerator was commissioned with a scrap yard for proper water disposal. Organizational structure of Nestlé is hierarchical.e. The tasks are divided into separate jobs and then these jobs are grouped together under different departments i. Nestlé is a function-based organization. fuctional departmentalization is found in organization. and coordinated.Nestlé Pakistan acquired the factory in 1990 as a subsidiary and subsequent to its meger with Nestlé Pakistan in April 1997 it became a fully owned unit of Nestlé Pakistan Ltd. . which that department performs.3 Organizational Structure Organizational structure is the formal framework by which jobs tasks are divided. A MAGGI NOODLES plant was installed in 1992. grouped. Each major area is kept under the manager who is specialist in that concerned field and is responsible for all activities.

But in spite of . numerous organizational rules. It encourages employees to give their suggestions and share the new ideas. The orders move from upward to downward and suggestions move downward to upward direction. The continuous improvement section is made for this purpose. there are explicit job descriptions. and clearly defined procedures covering work procedures. The jobs are formalized.There is a chain of command that extends from upper organization levels to the lowest levels and clarifies who reports to whom.

Nestlé keeps on changing to keep a pace with the changing environment. Nestlé is giving its products in 10 different categories of food with 75 brands. it is strict but not rigid organization. In effort to be more flexible and responsive. NIDO. These food categories with product lines are: Baby food (Cerelac). Dairy Products (Milkpak. happy with the addition to their wellness that they bring. Bottled Water (Nestlé Pure Life) Nestlé is offering following Product lines in Pakistan: Products with Years of Launch: 1981 Nestlé Milkpak 1983 Nestlé Butter 1986 Pakistan UHT Cream. Prepared food (Maggi noodles). CERELAC .).4 Product Lines Quality and nutritional value are the essential ingredients in all brands of Nestlé.formal rules and regulations. Breakfast cereals. MILO. Millions of people prefer Nestlé products every day. Nestea). So. Frost 1990 NIDO. Orange juice. there has been distinct trend in this organization toward decentralizing decision-making. Buddy. Pakistan Desighee. 2. Beverages (Necscafe liquid. EveryDay. Chocolate and confectionery (KitKat).

Gloria.1991 Nestlé Rice. 2003 BUDDY juices. NESCAFE (3 in 1) Q. NESLAC 1995 MILO RTD 1996 Nestlé juices. POLO Mint. Nestlé Hi-Calcium Low Fat MILK 2004 Nestlé Raita. It represents about 60% of an adult's body weight. NAN 2 2002 EveryDay liquid. Nestlé has a . Nestlé Hi-Calcium Low Fat Yogurt. As the world’s leading food and Beverage Company. which is adopted by Nestlé Pakistan Limited. While at first sight. Which Product I have selected? I have selected Nestlé Pure Life (NPL) to study its marketing strategy. Nestlé NAN 1. in fact. Maggi noodles 1994 MILO powder. Nestlé Soothers. Water is essential for life. Nestlé Pure Life 2000 Nestlé Plain Yogurt 2001 Nestlé Fruit Yogurt. NESCAFE Classic 1997 Nestlé KitKat 1998 Nestlé TOFFO. LACTOGEN 1. LACTOGEN 2 1992 Nestle EveryDay. and the world leader in bottled waters. there would seem to be enough water on our blue planet. barely 1% of the world's water is available for human and environmental needs.

Thailand. for the first time in its history. from 2 liters in Pakistan to 73 liters in Thailand. followed by Argentina. the Philippines. Nestlé with headquarters in Vevey. and 1. and Lebanon followed. In 1998. These SKUs are of 5 gallon (18. SKUs (Stock Keeping Units).9 liters). India. and Mexico in 2000. NPL bottled water is available in markets in several different sizes i. and in 2002. The brand was launched in Pakistan and soon appeared in Brazil. . 3 gallon for direct home and office delivery and . In Pakistan. China.5 liter bottles. Nestlé water is strengthening Nestlé Pure Life’s base of operations to meet the need of county’s emerging need for clean. This responsibility is embedded in Corporate Business Principles and in strategy for sustainability. In 2001. Nestlé began its entry into the water business in 1969.2 liter.responsibility towards the sustainable use of water resources. good-tasting water inconvenient sizes and packages to satisfy a family’s requirements. Uzbekistan and the United States. Switzerland was founded in 1866 by Henri Nestlé and is today the world's biggest food . Nestlé associated its name with bottled water: Nestlé Pure Life. Jordan. Egypt.e. NPL is today number one water brand in Pakistan. giving Asia strong growth potential for years to come. Annual bottled water consumption per person varies widely throughout Asia.5 liter.

000 people and have factories or operations in almost every country in the world. Markets are made up of current and prospective customers.1 Sales Department Sales department is a primary source of getting the information about the market. 3. the availability of the products is monitored as well as information about the competitors is gathered through this analysis. Sales at the end of 2005were CHF 91 bn.1 Market Market consists of people or organizations with needs to satisfy. 3. defined as any person or group with whom a marketer has an existing or potential relationship. with a net profit of CHF 8 bn.2 Analysis of Market Analyzing the market means getting the information about the current market trends. Nestle employs around 250. The needs and wants of the customers are identified. 3. money to spend.2. They actually visit the market and find out that who are the competitors. The image of the product in the minds of the customers is also judged and then on the basis There are different ways.and beverage company. and willingness to spend it. which are adopted by Nestlé to get the information of the market. and what strategies .

When Henri Nestlé prepared his first boxes of infant formula for sale. every head office has its own department.2 Customer Service Department For Every product there is customer service department. The . he put his address on the packages so people would know where to go if they had questions. customer’s complaints are collected which are gathered through the sales force or directly submitted by the customers. Nestlé believe in maintaining regular contact with their consumers. 3. Today. This is why Nestlé have a worldwide Nestlé Consumer Services network devoted to caring for consumers. Then batch number is assigned to these complaints and is transferred to the Marketing Department. This applies both to how it presents its products and to how it addresses its consumers' questions and concerns. They also collect the complaints of the customers and make sure the availability of the product in the markets. which is working in the Factory.they are adopting.e. If Marketing Department can’t be able to solve the problem then these complaints moved to the Quality Assurance Department. Nestlé’s Consumer Relationship Panel with the words "Talk to Nestlé" expresses the same commitment. This is head office based department i.2. In this department.

Listening helps to understand what people want.A. Nestlé cares for its consumers because its success depends on meeting their needs and expectations.3 Research and Development Department In Nestlé. food science. (Asia Oceania Africa) The R&D in America Zone is in America itself. in Europe Zone. Through listening and understanding. They provide the prompt. efficient and high quality service that consumers expect from Nestlé. employees are taught to talk with consumers and above all. R&D departments are localized. 3.O. 1. it can make products that they will want to use all through their lives. to listen. food safety and culinary expertise. In addition. Nestlé uses the insights gained from relationships with consumers to drive product development.O. A. Zone it is in Australia.employees have expertise in a wide range of areas such as nutrition. America 2.2.A. Europe 3. it is in France and in A. Nestlé has divided the whole world into 3 zones each has its own R&D. Its head office is in Switzerland. .

market segments.2. geographical location.4 Suppliers and distributors To know about the market Nestlé Pakistan limited has established the close relationship with their suppliers who provide the raw material and the distributes who distribute the product in the market. . Target and Position) 3.1 Market Segmentation Market segment consists of a large identifiable group within a market with similar wants.The customer complaints are forward to the R&D where research is conducted. product use behavior. In a total market. and a single marketing mix can satisfy benefits sought by the consumer. with different wants.3 STP (Segment.3. The results of the research and decisions are then transferred form R&D to localized offices. In some markets these differences are relatively minor. Within same general market there are group of customers. purchasing power. buying preferences. there is always some diversity among the buyers. or buying habits. 3. As these both have an up-to-date knowledge about the market as they have a close interaction with the customers and also with the competitors. 3. The market segment is based on need based and it’s targeted for every one who cares for his/her life and wants to maintain good health. buying attitudes.

Good Life”. brand.e. “A position is the way a firm’s product.3. Market Aggregation. management must next select one or more segments as its target markets. . is the quality food that if food would be good then life would also become good i.e. single segment concentration. or multiple segment targeting.3.e. The company can select any one of the tree strategies i. the marketers must next decide what position to pursue.2 Target Market After the company has segmented a market. or organization is viewed relative to the competition by current and prospective customers. a good health. The basic concept.3 Positioning After identifying the segments and then selecting oneor mor to target. 3.” When positioning a product the marketer wants to convey benefits most desired by the target market. The target market consists of upper lower class to upper upper class due to their purchasing power and company is following multiple targeting strategy which includes mainly two focus groups i. home & office consumption especially for bulk water. which it is giving to its customers. How Nestlé is positioning NPL? Nestlé is a food company and its logo is “Good Food.3.

but it also makes a contribution to good health and illness prevention that extends above and beyond the traditional concerns of sustenance. . which is conveyed to the customers. The current slogan of NPL is JIYO! Kay Yehi Hay Zindagi. Nestlé promotes consumer health and well being while at the same time adhering to regional traditions with regard to taste and pleasure. The purpose of all these slogans and messages is to establish the image of pure and quality water in the minds of the customers on which they can trust and can get the happiness and make their life hopeful.The name of mineral bottled water is Nestlé Pure Life. Backed up by the best possible product quality and food safety standards. With the objective of ensuring optimal nutrition. Nestle takes into account the consumer’s increasing expectations with regard to food. Through advertising campaign same message is being tried to communicate to the target customers who are health conscious and want to lead a healthy and happy life. Nestlé is has ever been trying to establish an image of purity and safety about its products. pleasure and convenience. is that NPL is Hope. The message. This name itself conveys the message of the Purity to its customers. Happiness and Trust.

This is a simple. The Nestlé Water Institute has developed a computer program designed specifically to maintain optimal levels of hydration during exercise and strives to raise athletes’ awareness of the essential role of good hydration before and after exertion to maintain certain water level in body. Nestlé Pakistan operates in many ways but people. a glass of water will do the trick. We now know that this can impede performance and can sometimes even be harmful to health. products and brands are the main flag bearers of the Company’s image. Support and Performance Until the 1970s. Like. which is pure and safe (clean). athletes were advised not to drink liquids during sports activities. healthy and effective way to lose those extra pounds! Drink to Health . Nestlé motivates the people to drink NPL by telling their customers about the importance of water. or have a craving for sweets. when you feel tired. Nestlé Pakistan is proud of its commitment to excellence in product safety and quality and to providing value and services to its consumers.In line with Nestlé’s global philosophy. You are what you drink! Drink a glass of water20 minutes before your meals and you will not eat as much. Hydration. Or.

during and after physical activity. vitality and prevents fatigue. Drink before you feel thirsty and drink cool water as it helps lower body temperature. causing the body to lose water and contributes to dehydration. safe water with you as you go about your daily activities. Always keep a bottle full of pure. Drink 6-8 . only pure. These beverages act as diuretics. Make sure your children drink plenty of pure. It helps flush away impurities that cause skin problems. Water helps maintain your energy. Always carry a bottle full of pure. safe water is essential to good health. safe water every day. Drink water when you wake up. Cool Down! Remember. Your skin needs water for elasticity. safe water refreshes you best. with every meal and bedtime. Caffeinated and sweetened drinks are not the answer to thirst. Radiant and Clear! Water is the ultimate beauty tool for radiant and clear complexion. sweetened or caffeinated beverages don’t count as your daily water intake. Develop a Hydration Habit! Soft drinks. safe water with you. Best Thirst Quencher! Make sure you drink plenty of water before.Pure.

It also means environmental quality. Customers are central focus of Nestlé and it must always respect their needs and preferences.glasses of water to prevent your skin for becoming dry and prone to wrinkles. appearance and price when they make their choice. Consumers consider taste. correct information and timely delivery. hotels. however. The customer comes first Nestlé wants to win and keep customers: distributors. Its goal. Nestlé is offering quality to customers. If they are not satisfied with a Nestlé Pure Life. . they will switch to another brand. supermarkets. expect value for their money – good quality at a reasonable price. Trade customers expect excellent service. and shopkeepers and the final consumers. Nestlé shares society’s concern for the environment and is committed to environmentally sound business practices throughout the world. Quality is a competitive advantage This is competitive world and must never forget that customers have a choice. All customers. It serves various groups of consumers and there is demand for NPL at different levels of perceived quality and price. Nestlé task is to understand what customers want and respond to their expectations rapidly and effectively. They have very different requirements.

packaging suppliers. Not only Production units. which is applicable throughout the group. Let us practice it every day. such as raw material producers. They too must set up an adequate quality system. often specific to a product. the mandatory standards and the recommended tools for implementation are laid down in the Nestlé Quality System. Our business products. so as to meet requirements. but also Marketing. is to provide superior value in every product category and market sector in which they compete. Nestle people says. Purchasing. contract manufacturers and distributors are expected to share our concern for Quality. Quality policy and principles. This implies a thorough knowledge of the products and services we offer. At Nestlé. norms and guidelines.4 Major Competitors .therefore. 3. Distribution and Sales have a vital role to play in providing quality to customers. Further directions are given through instructions. Quality is our first priority. Quality is a joint effort Operating companies are fully responsible for maintaining agreed quality standards. Every function and department in the company as well as Nestlé business partners must share the quality efforts.

the identification and evaluation of marketplace competitors is a key element of strategic marketing and a vital element of the corporate survival. competition is defined as: The competition between the firms. For different product categories there are different competitors of Nestlé. Nestle pure life (NPL) major competitors at this time who are also offering their water product in market are following: • Pepsi is offering Aqua Fina • Askari water There are also other small competitors as well e. According to market view. It is the first company which launched bottled water for first time in Pakistan and that’s why it has maximum market share than others because of being pioneer in this industry. It is also leading the other firms in new product introductions. and promotional intensity.Competition typically is defined as among forms within an industry producing products that are substitutes for one another. needs. Nova etc which have very low market segements. Classic. distribution coverage. which are satisfying the same customer. . Nestlé is the market leader in the water industry. Therefore.g.

• Pepsi Aqua Fina share is 15% • Askari Water has share of 2.5 Market Share • NPL share is 78%. Tapal danedar. Pepsi. 4.1 % is for all other competitors. which are satisfying the need of thrust of the customers.1 Marketing Strategy For each target market. which includes the designing of the . Beverages companies like unilever. • Remaining 4.So according to concept the competitors of NPL are all those companies. Coca cola etc.9%. management must design a Marketing strategy. 3. also come in this kind of the competition.

employees.marketing mix. cultural and religious practices: • Nestlé's business objective is to manufacture and market the Company's products in such a way as to create value that can be sustained over the long term for shareholders. Nestlé's existing products grow through innovation and renovation while maintaining a balance in geographic activities and product lines. and business partners. and its price. . consumers. Long-term potential is never sacrificed for short-term performance. wherever they are. whatever their needs. taking into account local legislation. The Marketing Mix is the combination of multiple aspects of the following four elements: a product. Nestlé is committed to the following Business objectives in all countries. The Company's priority is to bring the best and most relevant products to people. These four elements are intended to please the target market(s) and. how it is distributed and promoted. throughout their lives. equally important organization marketing objectives. • Nestlé does not favor short-term profit at the expense of successful long-term business development. The Company's strategy is guided by several fundamental principles.

which comes under the category of fast moving consumer goods (FMCG). prestige. retailing. or consumption that might satisfy a need or want. services. price. including packaging. • Nestlé continues to maintain its commitment to follow and respect all applicable local laws in each of its markets. which the buyer may accept as offering want is satisfied.• Nestlé recognizes that its consumers have a sincere and legitimate interest in the behavior. acquisition. To achieve these objectives the product. The Nestlé Seal of Guarantee is a symbol of this commitment. etc. .2 Product Strategy Anything offered to a market for attention. color. place and promotion strategies for Nestlé Pure Life are as following: 4. and that without its consumers the Company would not exist. tasty and affordable. Nestlé is committed to offering consumers high-quality food products that are safe. Nestlé is offering the products. beliefs and actions of the Company behind brands in which they place their trust. use. manufacturing. Product is set of tangible and intangible attributes. price.

Its basic foundation is unchanged from the time of the origins of Company. honesty.2. They say that Trust Nestlé Pure Life and also Nestlé pure life is Happiness.2 Product Line Expansion Product line expansion is accomplished by increasing the depth (variety of sizes.To be successful in marketing. Hope and Trust. and reflects the basic ideas of fairness. Nestlé is offering variety of sizes in NPL product line.1 Positioning the Product In relation to the attribute Nestlé is positioning its water as pure and safe water. which is essential to good health.5 liters . producers must need carefully planned strategies for their products.2. 4. Now the question is that how Nestlé has planned the product strategies for NPL. colors. this is the message which they are giving in their advertising campaign. models) within the product line. it is said that Nestlé is positioning in relation to the attribute and quality of the product. On basis of these. which are as follows: Retail line: 1. 4. and a general concern for people. Nestle also claims that NPL is Pakistan’s favorite water and currently their slogan is JIYO! kay yehi hay zindagi.

2 liter bottle and direct home and office delivery with 19 liter bottles. The brand has revolutionized the Pakistani market by tapping the real consumer need for pure.5 and 1. 3 Gallon 5 Gallon The year 2005 saw the successful completion of yet another year of outstanding business for NESTLÉ PURE LIFE both in retail with 0. 0. The exceptional performance of the brand is the result of expanding national distribution and an increasingly loyal customer bases.5 liters 0. 4.e.2 liters (Recently launched) Home and Office Line: It is also comes under Nestlé Bulk category.0. safe and healthy water and has successfully dominated a key strategic business in Pakistan.2.3 Product Life Cycle Product life cycle consists of the aggregate demand over an extended period of time for all brands comprising a generic product category.5liter bottles with the introduction of a new product i. Product life cycle is divided in four stages. Introduction: .

Large and small both kinds of competitors are entering in the market.During introduction stage. sometimes called the pioneering stage. Competitors enter the market. profits of both producers and middlemen decline. Maturity: During first part of the maturity stage. When sales level off. Decline: In this stage sales volume decreases and losses become grater than the profits. a product is launched into the market in a full-scale marketing program. the sales of water were 8000 tons and now this figure is raised up to 14000 tons. sales and profits rise. Sales volume and market share is increasing rapidly. Small competitors normally quit from the market at this stage and only large and strong remain moderately successful in decline stage. sales continue to increase. Last year. often in large numbers if the profit outlook is particularly attractive. NPL is at the growth stage of the product life cycle. The prime reason is intense competition. Growth: In the growth stage. or market-acceptance stage. but at a decreasing rate. . frequently at a rapid rate.

Packaging is intended to serve vital purposes: Packaging connotes pleasure and attraction. easily carrying bottles of small sizes. Branding for Market Saturation: NPL is categorized as NPL Home and Office (HOD) in bulk (in gallons) and NPL for retailers i. Color Packaging consists of all the activities of designing and producing the container or wrapper for a product. Branding reduces the price competition.2.5 Packaging.4. These multiple brands are necessary to penetrate separate target markets.2. Constant research into . Design.e.4 Branding A brand is a name and/or mark intended to identify the product of one seller or group of sellers and differentiate the product from competing products. By adding value to the product. 4. that it complies with all regulations and that it meets high standards of quality. Nestlé is using following branding strategies: The company name combined with a product name: A Nestlé brand name on a product is a promise to the customer that it is safe to consume. the shape of the bottle contributes to building brand identity. NPL round bottle and the classic elegance of bottle are instantly recognizable.

graphic identity and labels helps set new standards and energize brands by anticipating trends in consumer tastes. It guarantees product safety and quality from manufacturing through warehousing and distribution up until the end consumer. packaging fulfils several complementary functions. Renovation in design. In addition to this primary role. etc. a renovated and modernized square bottle is lunched by Nestlé. – ease of daily use is a subject of regular research. textures and colors. It is particularly crucial in preserving water’s original purity over time. Several of Nestlé Waters’ research programs aim to optimize material performance. consumer information. Innovation in this area can focus on transportation convenience. while a battery of tests and ever more innovative capping techniques guarantee consumer safety on a daily basis. making the pack more comfortable to carry the bottle. Packaging is an essential protection. Packaging practicality is a key factor for success. functionality to suit changing lifestyles. practicality. By adopting a new dynamic design. and so on. water tightness. Given greater diversity .materials and styles generates innovative packaging in ever more attractive shapes. Beyond the basic requirements – strength. including product identification and enhancement.

packaging must also meet new ecological challenges. along with the emergence of new consumption patterns.6 Labeling A grade label is used in case of NPL. Nestlé Waters continue its efforts to develop more environmentally friendly bottles. Pure. 4. safe. In this context. Grade label identifies the product’s judged quality with a letter. what one likes. or word. This responsible corporate policy relies on a dual approach: reducing both packaging weight and energy requirements during the manufacturing process while considerably increasing the quantity of material recycled. Nestlé is using different phrases words to show the quality of the product. Like Trust. But one thing is common that when an organization fulfills the expectations of the customers through its products then the image that organization is established as a quality-delivering organization. Quality is a relative term and it varies from person to person due to the personal interests.in packaging types and quality. The same case is with NPL it is satisfying the . 4.2. number. Happiness.2. Pakistan’s favorite water. healthy and Premium drinking water. even though it is universally recognized as significant. another may dislike.7 Quality There’s no agreement on a definition of product quality.

Everyday. that it complies with all regulations and that it meets . In Pakistan too the Company has all along been committed to achieving the highest quality of its products. that it complies Quality is the cornerstone of success. This confidence is based on quality image of Nestlé and a reputation for high standards that has been built up over many years.needs and expectations of the customers through its standardized products. A Nestlé brand name on a product is a promise to the customer that it is safe to consume. Nestlé commitment to product quality remains the corner stone of its business philosophy. Quality is the cornerstone of NPL success: Every product on the shelf. the Company embarked upon the “farm to table” quality concept – the guarantee about the quality of Nestlé products up to the time of consumption by the consumer. millions of people all over the world show their confidence on Nestlé by choosing Nestlé Pure Life. A Nestlé brand name on a product is a promise to the customer that it is safe to consume. in 1993. every service and every customer contact helps to shape this image. Every product on the shelf. Nestlé expect this concept to result in its product becoming the product of choice for its consumers. every service and every customer contact helps to shape this image. As a part of this effort.

Natural or treated. the Central Laboratory carries out over 200. It is the key to our success. People. Under no circumstances will we compromise on the safety of a product and every effort must be made to avoid hazards to health. today and tomorrow.000 chemical and microbiological analyses every year. the Central Laboratory is not only a quality guarantee of the resource and the final product. but also a centre of expertise for the hundred Nestlé Waters’ production sites.high standards of quality. equipment and instruments are made available to ensure safety and conformity of Nestlé NPL at all times. Based at the Product Technology Centre (PTC) in Vittel in France. Likewise. 4. Linking two regional laboratories. compliance with all relevant laws and regulations is a must and is not negotiable. all of Nestlé Waters’ bottled waters undergo the same strict quality controls and adhere to different local and international regulations linked to their specificities.3 Price . Nestlé people says: Quality is our most successful product.

Some prospective customers are interested in low prices. Nestlé has adopted following for setting the pricing of NPL: . where as another segment is more concerned with other factors.” A product price influences wages.oriented: To achieve a target return To maximize profit Sales-oriented To stabilize prices To maintain or increase market share Status quo-oriented: To stabilize the prices To meet competition In developing a marketing program. value. management has to decide whether to compete primarily on the basis of price or the non-price elements of the marketing mix. and utility is an attribute with potential to satisfy the wants.“Price is the amount of money and/or other items with utility needed to acquire a product. quality. rent. Consumer’s perception of quality may be influenced not just by price but also by such factors as store reputation and advertising. and brand image. Pricing objectives may be: Profit. interests. such as service. and profits.

appealing promotional program. Nestlé (NPL) offers the Trade Discounts to it customers. such as free merchandise or advertising allowances. products and to create a novel. Market Entry Strategies The price of NPL is maintained constant over the period as the base for this is qualitative product which over the time period has reaped more market by keeping price constant.2 Discounts and Allowances Discounts and allowances result in a deduction from the base (or list) price. hopefully unique. 4. competitors’ prices still must be taken into considerations. To maintain this non-price competition Nestlé is developing distinctive. Nevertheless. Of course.4.3. The deduction may be in the form of reduced price or some other concession. it emphasizes the variety and quality of the NPL. In addition.3. Discounts and allowances are common in business dealings. which they are offering to customers. and price changes will occur over time. the emphasis of Nestlé is on something other than price.1 Non-price Competition Nestlé is trying to maintain stable prices of NPL and attempt to improve its market positions by emphasizing other aspects of their marketing programs. Trade discounts sometimes called functional discounts are .

The examples of these functions are: storing. Even prices are set for the NPL products.deductions from the list price offered to buyers in payments for marketing functions the buyer will perform.4 Place Inn marketing strategy. Nestlé is also following this strategy. and selling the product. It is doing so to protect the brand’s image. this is termed as resale price maintenance. But for different quantities the company is offering different price. Middleman is . 4. Place means distribution of the products. promoting. 4. For this purpose. They say that their control of prices provide middleman with ample profit margins.e. one-price strategy in which the company charges the same price to all similar customers who buy identical quantities of a product. Ownership of a product has to be transferred some how from the individual or organization that makes it to the consumer who needs it and buy it.4 Resale Price Maintenance Some manufacturers want to control the prices at which middlemen resell their products.3. It is a very important element of the marketing-mix. 4. Goods also must be physically transported from where they are produced to where they are needed. middlemen are used.3.3 One-Price Strategy NPL is using this special price strategy i.

4. 4. A distribution channel consists of the set of people and firms involved in the transfer of title to a product as the product moves from producer to ultimate consumer or business user.1 Type of Distribution channel: Diverse distribution channels exist today.4.2 Vertical Marketing System (VMS) VMS is tightly coordinated distribution channel designed specifically to improve operating efficiency and marketing effectiveness.a business firm that renders services related directly to the sale and/or purchase of a product as it flows from producer to consumer. This comes under the term: 4. activities such as creating assortments and storing products can be shifted from one party to another in an effort to improve efficiency. They have . They are also able to carry out distribution activities better or more cheaply than either producers or consumers. Due to these middlemen. Nestlé Pakistan Limited has a strong network of distribution and has a separate supply chain department. The distribution channel used for distribution of NPL by Nestlé is: Producer Wholesaler Retailer Consumer This is an economically feasible choice. This is done by the Nestlé.

Consumer Retail Channel 2.4. Consumer Retail Channel Company Consumer 2. Bulk Consumer Company Wholesaler Consumer Wholesaler Retailer 4. 4.4 Considerations in selecting the channels Nestle is adopting foolowing considerations while selecting the distribution channel.established an ownership relationship with the successive levels of the middlemen. Under supply chain management NPL is distributed through two main channels ie. combining distribution channels and physical distribution.4. Home b. 1. The core of supply chain management is coordinated logistics.3 Supply chain management (SCM) It represents a total system perspective of distribution. Office 1. Market consideration . Bulk Consumer a.

The company is trying to sell its products through every available outlet in a market.It is necessary to know about the current marketing trends and also about the competitors. Company consideration Nestle also has to take care of its objectives while selecting the channel i. where a consumer might reasonably look for it. Middleman Consideration Water is necessity of life so in time availability of NPL to the customer is very necessary.4. The Nestlé (NPL) uses Intensive Distribution. That’s why Nestlé is using this intensive distribution. As water is a product of daily usage so its availability at right time and at right place is very important. 4.e. quality service and at reasonable distribution cost to get maximum profit.5 Intensity of Distribution There are many degrees of intensity__ ranging from intensive to selective to exclusive. Ultimate consumers demand immediate satisfaction from convenience goods and will not defer to purchase a particular brand. By using this timely . Product consideration It is necessary to give the good quality of NPL.

5 Promotion . affordable price and tailored to local preferences.distribution many benefits the Nestlé (NPL) is receiving. The Nestlé brands are another strategic asset for Nestlé Waters. They originated in the global need for a safe family drinking water with a pleasant taste. Careful Management of distribution channels has resulted in helping for Nestlé to keep the stable prices of the Nestlé Pure Life. warehousing and transport constraints – which are particularly high in the bottled water sector – enabling consumers to enjoy the product at a more attractive price under a strong brand identity. which directly affects the demand. thus reducing costly logistical. 4. such as: Improve customer service. The strong and effective distribution channels has added value to product by both time utility and place utility. This need gave rise to a new multi-site production process for bottled water based on a simple idea: a single brand of water produced at a variety of sites. Effective physical distribution management opens many revenues for company.

sales promotion.1.5.5.It consists of a diverse collection of incentive tools.1 Promotional Mix A promotional mix is an organization’s combination of personal selling. Promotion informs. mostly short term. or products. From marketing point of view. persuades. organizations. An effective promotional mix is a critical part of all marketing strategies. 4. and reminds prospective and current customers and other selected audiences about a company and its products. more recently the Internet. in whatever form it takes. designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade. Promotion. The most familiar outlets for ads used for the advertisement of the NPL by Nestlé are the broadcast (TV and Radio) and print media (news papers and magazines). advertising.1 Advertising It is non-personal communication paid for by a clearly identified sponsor promoting ideas. The Nestlé also uses other advertising vehicles like billboards. Nestlé has its own . and public relations. The most useful brand is failure if no one knows it is available. T-shirts and. Nestlé is using following methods for promotion of NPL: 4. is an attempt to influence.

happiness and trust and that water is Nestlé Pure Life. Nestlé is doing the selective demand advertising that is intended to stimulate demand for individual brands. It is pure. There is one water. Nestlé has the internal advertising department as well as hire the services of the external Media manager assisted by it’s assistant to devise all campaigns…… 4. JIYO! Kay yehi hay zindagi. and healthy water. their slogan is.1. On billboards the pictures of NPL advertisement seems so attractive. safe. And in recent advertising campaign.5. hope.website which is giving the information about the different brand of the company. In the advertisement the message is given that. Nestlé has designed it in away to encourage the company’s . especially in summer season across the roads that it motivates the customer to purchase it immediately. Many sales promotions are directed at consumer.2 Sales Promotion It is demand-stimulating activity designed to supplement advertising. It is paid for by the sponsor and frequently involved a temporary incentive to encourage a sale or purchase. which gives you.

visiting the market. annual reports. Nestlé is following all above mentioned public relations forms: The company assists through donations such hospitals and organizations that provide services to the poor and responds to distress calls by the government and NGOs for assistance to victims of flood. trade shows. and discounts. stockholders.sales force or other members of the distribution channel to sell products more aggressively. 4. lobbying. Unlike most advertising and personal selling. in-store displays. drought and other natural calamities. earthquake.1. collecting the customer’s complaints and transferring to the concerned department. Nestlé Pakistan limited arranges concerts. They also make sure the availability of the NPL to the consumer at right time and at right place. event sponsorship. it does not include specific sales message. The function of this department is to taking the sales orders. In Nestlé.3 Public relations It encompasses a wide variety of communication efforts to contribute to generally favorable attitudes and opinions toward an organization and its products. and support of charitable and civic events. including newsletters. . or a special-interest group. The targets may be customers. a separate sales department is working.5. Public relations can take many forms. a government agency.

Publicity is specific form of public relations that involves news stories about organization or its products. it consists of an impersonal message that reaches a mass audience through the media. it undertakes Refurbishment Program of Govt. The company has initiated a tube well and hand pump installation scheme in selected rural areas. The . 4.4 Publicity Publicity is also a promotional method used by the Nestlé. such as the International Polo Tournament and SAF Games in the recent past.1. But several features distinguish publicity from advertising. operated primary and middle schools. calendars and diaries to the employees and customers for public relations.The company arrange mil program for undernourished and sick children and mothers through several NGOs and charitable organizations. The company does not pay for it and it has little or no control over this and it appears as news and therefore has grater credibility than advertising. It donates computers to schools for disadvantaged children run by NGOs and charitable organizations.5. The Company regularly sponsors sports and cultural events. To support the spread of education in rural areas. The company gives the extra gifts. Like advertising.

regional. it undertakes simultaneous local.2 Integrated Marketing communication Nestlé is using the integrated marketing communication system. they will switch to another brand. When a picture of a company’s CEO appears on the cover of business publication and it accompanied by a flattering article in the magazine. national. Findings and Recommendations This is competitive world and must never forget that customers have a choice. and international programs. Depending upon the objectives and available funds.5. nor is a single-minded cost-cutting approach.company seeks for good publicity and frequently provides the material for it in the form of news releases. Lasting competitive advantage is gained from a balanced search for optimal value . press conferences. and photographs. The Nestlé has incorporated several different promotional campaigns. 4. it is often attributable to the efforts of the firm’s public relations department. In this. If they are not satisfied with a Nestlé Pure Life. company is trying to coordinate all promotional efforts make an effective impact on the customer mind and to deliver a consist message. The pursuit of highest quality at any price is no guarantee for success.

Nestle also must identify and take advantage of opportunities. It is through many small improvements as well as through major breakthroughs that Nestle will achieve excellence. consumer services department is the evidence of such a pursuit from the organization point of view. If they do something better. Presently the company is market leader in it’s category but it shouldn’t take it as a complacent attitude rather capitalize on its good brand equity and to improve its quality of product to reap not only more profits for the shareholder but also serve the humanity . Nestle can achieve competitive advantage through Quality. Nestlé must watch and learn from its competitors. by simultaneous improvement of quality and reduction cost. Success can never be taken for granted. Nestle must improve its own performance.to customers. We have observed from our extensive hard-work to compile these pages and after visiting the organization that the company is eager to serve consumers at its every possible level. Progress is followed by listening to Nestle customers and by measuring its works performance. Problems must be anticipated and prevented before they occur. Shortcomings and mistakes must be analyzed and corrected. So Nestle must strive for continuous improvement in every area. To stand still is to fall behind.

17 January 2012 14:42 Post a Comment .. The company can fulfill this job by having such a spirit following it religiously by incorporating it all the marketing strategies. awesome project 20 October 2011 23:29 Anonymous said..by providing them healthful water which in other way a noble & sacred job. Bruce J. THE BRAND NAME IS CULLIGAN WATER .... Stanton: Marketing 12th edition Philip Kotler: Marketing Management 12th edition Stephen P. Walker and William J.. Mary Coulter: Management 7th edition Posted in: Marketing Newer Post Older Post Home 2 comments: Anonymous said.. Etzel. research was good . Robbins.. Bibliography Michael J.but i will not agree with the Compitator part this u r missing a very big n major name who was the second in PAKISTAN..

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