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8/8/2019 Nestle - Zaka (92)
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Submitted To:
Mr. Jawad Saleem
Submitted By:
Ali Ashfaq
M. Javeed Sardar
Moazzam Riaz
Muneeb AkramKashif Ali
TABLE OF CONTENTS
PREAMBLE 3
MARKET 5
MARKET DEMOGAPHICS 5INDUSTRY ANALYSIS 6
MISSION STATEMENT 6
VISION STATEMENT 7
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ORGANIZATION PORTFOLIO 8
NESTLES HISTORYAND INNVATIONS12
First cameinfant and milk nutrition 13
CONTRIBUTION TO OTHER SECTOR 15
REGIONAL SALES OFFICES 18
RATIO ANALYSIS isuseful essentially for : 19
Competitor Analysis 20
WATER 21
NESTL PureLife PET Bottles 21NESTL PureLife Home & Office Service 21
AVA & FONTALIA 21
NESTL 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: 26PRODUCT ATTRIBUTES: 26
BRAND NAME: 26
BRAND POSITIONING: 26
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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: 29OVERALL EXCELLENCE STRATEGY: 29
CONSUMER ANALYSIS 30
SUGGESTIONS 31
PREFERENCES 32
PREAMBLE
Praise to beAllah Almighty , the one testing us all at all times and making decisions aboutwhat we dont know and cant know.
Today it is impossible for a common man to run the business especially in this period of competition. This situation demands energetic, duly qualified experienced businessadministrators who could meet the challenges of this age of modernization. PAK AIMSproduce management specialists fully aware of the ins and outs of the businessmanagement, and capable of meeting the challenges of modern business environment.
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In this project we discussed how started workings what are the objectives and goals of theorganization nestle and what are the products and services offered by the company to itstarget customers. We made a marketing plan for NESTLE PURE LIFE that how themarketing share of this product can be increased what strategies should use for thispurpose. We elaborate all the aspects of the marketing plan in this project.
MARKET
Markets may be any of a variety of different systems
Markets vary in size, range, geographic scale, location, types and
variety of human communities
Market is any structure that allows buyers and sellers to exchange anytype of goods, services and information
Market facilitates trade and enables the distribution and allocation of
resources in a societyMarkets allow any tradable item to be evaluated and priced
MARKET DEMOGAPHICS
Population: 180,000,000
Growth rate: 1.828%
Birth rate: 27.74 births/1,000 population
Death rate: 8 deaths/1,000 population
Net migration rate: -1.24 migrant(s)/1,000 populations
0-14 years: 40% (male 33,293,428; female 31,434,314)
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VISION STATEMENT
We envision Nestl 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 groupfrom infancy to old age,
For nutrition and pleasure, through development of a large
Variety of food categories of the highest quality
We envision the company to develop an extremely
Motivated and professionally trained workforce, which
Would drive growth through innovation and renovation
We aspire, as a respected corporate citizen, to continue
Playing our due role in the social and environmentalSectors of the country
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ORGANIZATION PORTFOLIO
ESTABLISHMENT:
Nestl was founded in 1866 by Henri Nestl with headquarters in Vevey, Switzerland. Ithas employed around 250,000 people and has factories or operations in almost everycountry in the world.
COMPANYTYPE:
It is one of the world's biggest food and Beverage Companies.
BRANDS:
Nestle offers a variety of brands of which the most well known are Nescafe, Nestl KitKat, Nestl juices and Nestl bottled waters.
Nestls existing products grow through innovation and renovation while maintaining abalance in geographic activities and product lines.
The Company's priority is to bring the best and most relevant products to people,wherever they are, whatever their needs, throughout their lives.
BRAND PORTFOLIO:In 1992, Nestl was the first company to dare to launch a mineral water, Valvert. TodayNestl Water is established in 130 countries and markets about 70 different brands.
In 1998, for the first time in its history, Nestl associated its name with bottled water Nestl Pure Life.
The brand was launched in Pakistan and soon appeared in Brazil, followed by Argentina,Thailand, the Philippines, China, and Mexico in 2000. In 2001, India, Jordan, andLebanon followed, and in 2002, Egypt, Uzbekistan and the United States.
Today the Nestle Pure Life brand is present in 20 countries around the world, across allcontinents - Asia, Near East, South and North America and Europe.
Wherever it is to be found around the world, Nestle PURE LIFE answers some crucialconsumer needs, focused on three core pillars: Trust, Quality and Service.
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Nestle PURE LIFE offers an ideal balance between a healthy supply of minerals and apleasant, refreshing taste, making it suitable for the whole family. It contains essentialminerals such as:
Calcium:necessary for building strong bones and teeth,
Magnesium:necessary for muscle contraction and transmission of pulses.
COMPANY FROM FOUNDATION TILL NOW
1866 Company's foundation
1905 Merger between Nestl and Anglo-Swiss Condensed Milk Company
1929 Merger with Peter-Cailler-Kohler Chocolate Suisse's S.A.
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 Nestl acquires Victor Schmidt & Shne, Austria's oldest producer of confectioneryincluding the famous 'Mozartkugeln'.
1997 Nestl, through the Perrier Vittel Group, expands its mineral water activities with thoutright acquisition of San Pellegrino.
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1998 Nestl acquires Spillers Petfoods of the UK and strengthens position in the petfoobusiness which began in 1985 with the acquisition of the Carnation Friskies brand.
1999Divestiture of Findus brand (except in Switzerland and Italy) and parts of Nestlfrozen food business in Europe.Divestiture of Hills Bros, MJB and Chase & Sanborn roast and ground coffee brand(USA).
2000 Acquisition of Power Bar.
NESTLES HISTORY AND INNVATIONS:
The key factor which drove the early history of the enterprise that would become TheNestl Company was Henri Nestl's search for a healthy, economical alternative tobreastfeeding for mothers who could not feed their infants at the breast.
In the mid-1860s Nestl, a trained pharmacist, began experimenting with variouscombinations of cow's milk, wheat flour and sugar in an attempt to develop an alternativesource of infant nutritionfor mothers who were unable to breast feed. His ultimate goalwas to help combat the problem of infant mortality due to malnutrition. He called the newproduct Farine Lacte Henri Nestl.
Nestl's first customer was a premature infant who could tolerate neither his mother'smilk nor any of the conventional substitutes, and had been given up for lost by localphysicians. People quickly recognized the value of the new product, after Nestl's newformula saved the child's life and within a few years, Farine Lacte Nestl was beingmarketed in much of Europe.
Henri Nestl also showed early understanding of the power of branding. He had adoptedhis own coat of arms as a trademark; in Swiss German, Nestl means 'little nest'. One of his agents suggested that the nest could be exchanged for the white cross of the Swissflag. His response was firm: "I regret that I cannot allow you to change my nest for aSwiss cross .... I cannot have a different trademark in every country; anyone can makeuse of a cross, but no-one else may use my coat of arms."
Meanwhile, the Anglo-Swiss Condensed Milk Company, founded in 1866 by AmericansCharles and George Page, broadened its product line in the mid-1870s to include cheeseand infant formulas. The Nestl Company, which had been purchased from Henri Nestlby Jules Monnerat in 1874, responded by launching a condensed milk product of its own.The two companies remained fierce competitors until their merger in 1905.
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Thus Nestl became the heir to inventions such as Daniel Peters milk chocolate (1875)and Julius Maggis vegetable-based soups (1884) and stock cubes (1908).
Nestl accumulated knowledge, as well as the perseverance and competence of scientistslike Max Morenthaler, made possible the huge success of the Nescafe launch in 1938.
Subsequent acquisitions opened doors to new areas, such as
Preserves (Crosse & Blackwell 1960),
Frozen foods (Findus, 1962),
Mineral water (Vittel, 1969)
Pet care (Carnation, 1985).
Others reinforced the companys position in established areas, for example,Italian cuisine (Buitoni, 1988),
Chocolate and confectionery (Rowntree,1988)
Performance foods (PowerBar, 2000).
At the same time, reseat at Nestl resulted in the development of new products such as
Milo (1934),Nestea (1944),
Nesquick (1948),
NAN (1962),
Yes (1979),
Nespresso (1986),
LC (1994) and
Nestl Pure Life (1998).
Existing products such as Nescafe, Maggi culinary products or the various dairy productshave been constantly improved and adapted to current consumer life-styles.
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Registered & Corporate Office
308 Upper Mall, Lahore
PABX : (042) 5757082-95
Fax : (042) 5711820
Factories
Sheikhupura
29th Kilometer, Lahore- Sheikhupura Road
Sheikhupura, Punjab, Pakistan
Kabirwala
Khanewal Kabirwala Road, Kabirwala
District Khanewal, Punjab, Pakistan
Phone : (06512) 411433-36
Fax : (06512) 411432
Auditors A.F. Ferguson & Co. (Chartered Accountants)
Legal Advisors Cheema & Ibrahim (Advocates)
Bankers ABN AMRO Bank
Bank of Tokyo-Mitsubishi Ltd.
Citibank N.ACredit Agricole Indousuez
Deutsche Bank A.G.
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Habib Bank Ltd.
Muslim Commercial Bank Ltd.
Standard Chartered Bank.
REGIONAL SALES OFFICES
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Karachi
F-77/1, Block 7,
Clifton, KDA Scheme 5,
Karachi, Sind, Pakistan.
Phone : (021) 5833935-6
Fax : (021) 5833937
Hyderabad
178, Block C, Unit 2 Latifabad,
Hyderabad, Sind, Pakistan.
Phone : (0221) 860403
Fax : (0221) 863202
Lahore
29-b, Main Gulberg,
Lahore, Punjab, Pakistan
Phone : (042) 5754335-6, 5752582
Fax : (042) 5761491
Multan
Surij Miani Road, Chungi No. 1,
Multan, Punjab, Pakistan.
Phone : (061) 515061
Fax : (061) 515057
Faisalabad
Al Haq Plaza, 271-A,
Small D Ground, Peoples Colony
Faisalabad, Punjab, PakistanPhone : (041) 546993, 734538
Fax : (041) 543538
Gujranwala 23, D.C. Road.
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Assessment of earnings and dividend prospects.
Growth in economic value of investments with respect to the risks undertaken.
Bankers/Creditors concern
Assessment of the ability of the business to service its debt obligations.
Debt coverage.
Proper utilization of assets financed.
Government's concern
Evaluation of the economic contributions of the business entity.
Determination of the entity's financial strength to carry social and developmentalprograms.
THE ANALYSIS
The financial ratios discussed here are those which are derived simply and directly fromfinancial statements. These ratios are used in analyzing the financial statements inordinary course of business activity. The ratio analysis can be divided into three broadcategories:
The Solvency Ratios.
The Efficiency Ratios.
The Profitability Ratios.
Competitor Analysis
NESTLE Aquafina
Sufi
Kinley
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Other
TOTAL SHARE
9072000
TOTAL SHARE OF COMPETITORS
NESTLE 2903040 AQUAFINA 1995849
SUFI 453600
KINLEY 1451520
OTHER 2268000
WATER
NESTL Pure Life PET Bottles
The year 2001 saw the successful completion of three years of outstanding business for NESTL Pure Life PET Bottles of 0.5 and 1.5 liters. The exceptional brand successwas the result of expanding national distribution and an increasingly loyal customer base.
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The brand has revolutionized the Pakistani market by tapping the real consumer need for pure, healthy, and safe water and has successfully dominated a key strategic business
NESTL Pure Life Home & Office Service
In 2000, NESTL Pure Life established a successful Home and Office (H&O) deliveryservice in Lahore, which has substantially grown ever since and has come to dominatethe 5- gallon market. Successful marketing and sales strategies offer greater convenienceand better value to the consumers. The brand is poised for strong growth in future.
AVA & FONTALIATo expand its H&O water delivery business countrywide, Nestl acquired major shareholdings in both these businesses in 2001. While AVA is an important national player inthe branded bottled water category, both in PET and H&O services
NESTL PURE LIFE & BULK WATER
The launch of Nestl Pure life in December 1998 was a truly historic event. This marksNestl Milkpak's entry into the country's fastest growing water market. At the same timePakistan became the first country where Nestl launched this new worldwide brand. It
has been launched in 11 markets internationally with its lead and best performing marketbeing in Pakistan. The reporting of Nestl Pure life is not directly under the Nestlheadquarters at Vevey, Switzerland. Rather all the water brands at Nestl have to reportto Perrier Vittel, the pioneer and lead French Brand in the water market. Other than that,all the research concerning the contents is carried out at the Research Center at Vevey.
SEGMENTATION STRATEGY
Psychographic Segmentation
Demographic Segmentation
Geographic Segmentation
Behavioral segmentation
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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 thestrong reason
Opportunities
people are becoming more health conscious
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Threats
Low Entry Barrier
Economical Uncertainty
SWOT ANALYSIS
Strengths:
High Quality Obtained By The Usage Of A Special Production Process.
Own Industrial Laboratories That Perform Constant Control For Physical-chemical And Bacteriological Parameters.
Daily Sensor Water Analysis for Flavor, Color And Odor.
Great And Neutral Taste Which Suits All The Family
Safety And Purity From The Source To The Consumer
Produced Locally, Close To The Consumer.
Weakness: Nestle Pure Life Is Relatively Expensive Than Other Brands.
Opportunities:
Water Is An Essential Part Of Life And Everyone Prefers To Drink SafeAnd Healthy Water.
Nestle Is A Trusted Brand For Providing Good Quality Products.
Threats: Tough Competition From Aquafina And Kinley.
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MARKETING MIX
1-PRODUCT:
Nestl Pure Life is drinking water that has been treated and rematerialized using astandardized industrial process to ensure purity and quality. Pure and Safe Nestle PURELIFE refills your body with water to maintain a good level of hydration. It provides abalanced mineral formula (on average 150-170 mg per liter), contributing to dailymineral requirements.
Structure of water
Mineral Component Concentration,not more
General mineralization (mg/l) 220 mg/lCalcium 40 mg/lMagnesium 15 mg/lPotassium 20 mg/lBicarbonates 60 mg/lFluorides 0,6 mg/lHardness Mg-eq/l 3
PRODUCT TYPE:
It is a consumer product and a convenience good.
PRODUCT ATTRIBUTES:
Nestle Pure Life is a pure, safe and healthy, colorless and odorless drinking water with apleasant taste.
BRAND NAME:
Nestle Pure Life.
BRAND POSITIONING:
Premium drinking water
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BRAND IMAGE:
Safe and healthy water
BRAND EXTENSION:
Nestle is soon introducing flavored water in lemon, orange, raspberry and strawberryflavors.
PACKAGING:
Nestl PURE LIFE is available in a wide variety of packaging formats to suit allconsumer needs and consumption occasions. Packaging is innovative to meet theindividual needs of consumer all over the world.
The range of formats extends from the individual bottle for on-the-go consumption (0.33l
to 0.5l), to the family size bottle (1.5l) and on to larger formats of 5 gallons (18.9l) for in-home and office usage.
Nestle PURE LIFE 18.9-liter bottles have a protective cover, so that the consumer canimmediately define, that the product was delivered from the factory. Its proprietarydesign equally protects the brand from counterfeiting.
Nestl Pure Lifes originality lay in the use of an all-new plastic, P.E.T. (polyethyleneteraphthalate), which is stronger and more elastic than the PVC. Besides, P.E.T. isrecyclable.
Nestl PURE LIFE is bottled when possible in the country, or at least in the region whereit is sold, combining the benefit of a local production and the strength of a worldwidebrand.
LABEL:
The label provides information like quantity, mineral contents, logo, manufacturing dateand best before date. Consumer service number is mentioned and stamp of PSQCA withlicense number is also mentioned.
2-PROMOTION:
Nestle Waters Coolers has been a part of Nestle Waters since 2003 and represents NestlePure Life brand. Service quality has always been the main driver of HOD business. Theyare using television and radio advertisements in electronic media. In print media they areusing billboards, newspapers, pole signs and posters.
In big departmental store they have display corner in which Nestle Pure Life isrefrigerated. Moppies are also used for advertisement in these stores.
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In summers direct marketing is used for promotion by providing cool points of NestlePure Life where chilled Nestle Pure Life is available for instant drinking.
3-PLACE:
Nestle Pure Life is a convenience good and is frequently used therefore it has been placedon all big and small stores to make it available everywhere. The type of placement usedfor nestle pure life is spot exchange.
4-PRICE:
Nestle pure life is following brand pricing through which it provides functional andpsychological satisfaction to its target customer. The pricing strategy of Nestle Pure Lifeis market skimming.
Prices of Nestle Pure Life are relatively higher than their competitors. Market prices of
individual consumables (0.33l to 0.5l) are Rs.10 and Rs.13. The price of family sizebottle (1.5l) is Rs.24 and of large bottles of 5 gallons (18.9l) is Rs.130
PRICE
PRODUCT
PROMOTION
PLACE
MARKETING MIX
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STRATEGIES FOR CREATING COMPETITIVE ADVANTAGE
DIFFERENTIATION STRATEGY:
They have developed a very visible image of their water that it is safe and healthy and isPURE LIFE in true sense.
OVERALL EXCELLENCE STRATEGY:
Nestle is a trusted brand and its products are consider to best and of very high qualityworld wide. This is a very important competitive advantage of Nestle Pure Life.
Introduction Growth Maturity Decline
Characteristics
Customers Innovators Mass Market Mass Market Loyal Customers
Competition Little if any Increasing Intense Decreasing
Sales Low levels, thenrisingRapidGrowth
Slow/no annualgrowth Declining
Profits None Strong, thenat peak Decliningannually Low/none
MarketingImplications
Overall Strategy MarketDevelopmentMarketPenetration Defensive Efficiency
Costs High per unit Declining Stable or increasing Low
Product Strategy Undifferentiated Improveditems Differentiated Pruned Line
Pricing Strategy Most Likely highLower over time Lowest Increasing
Distribution Scattered Intensive Intensive Selective
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Strategy
PromotionStrategy
Categoryawareness
BrandPreference Brand Loyalty Reinforcement
CONSUMER ANALYSIS
Motivational factors to buy nestle
When you use bottled water?
Buy preferences
SUGGESTIONS They should introduce 0.20l water glass of Nestle Pure Life whichshould be provide on cool points in summer.
They should set the price of their product in accordance with their competitors price.
Nestle Pure Life should communicate the benefits of drinking it.
Now a day, they are not advertising properly therefore they should focus
on more advertisement so that they could create strong brand loyaltyamong customers.
They should introduce 0.20l water glass of Nestle Pure Life whichshould be provide on cool points in summer.
They should set the price of their product in accordance with their competitors price.
Nestle Pure Life should communicate the benefits of drinking it.
Now a day, they are not advertising properly therefore they should focuson more advertisement so that they could create strong brand loyaltyamong customers.
PREFERENCES
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Muhammad Adeel Aman Khan, Sales Manager Nestle
www.nestle.com
Economy survey of Pakistan 2008
www.Google.com
http://www.nestle.com/http://www.nestle.com/http://www.nestle.com/