1 MBA (D) – Principles of Marketing – Group Marketers

Principles of Marketing

Marketing Plan

For

Nestle Every Day (Outline)

Submitted to: Ms. Rabia Shoaib Submitted by: Group - Marketers

- Saquib Hasan - Shafqat Idrees - Fouzan Rafi - Hammad

2 MBA (D) – Principles of Marketing – Group Marketers

Product: NESTLÉ® EVERYDAY® (Tea Whitener) Manufacturing Company:

NESTLÉ Pakistan Limited Executive Summary: NESTLÉ® EVERYDAY® tea whitener was launched in 1992 to exploit the potential offered by the tea whitening segment and to expand the overall powder milk market. Owing to its focused positioning and convenience it offers, the product was a huge success. In Pakistan, tea is a national beverage consumed in all walks of life. Interestingly, Pakistani consumers pay more attention to the quality and blend of the tea leaves than to the milk used in it. Given this environment, Nestle must be credited for creating consumer awareness and generating a brand of milk specifically for use with tea more than eighteen years ago. The brand has shown strong growth pattern with a great promise in the future. Current Marketing Situation: Currently NESTLÉ® EVERYDAY® is a market leader in tea whiteners with a strong customer percentage, but it now faces tough competition with following recent new entrants: Engro Foods - Tarang Haleeb Foods - Candia There are few others international imports also but they have insignificant market share. The main concern is to maintain lead in the market and identify the market opportunities to expand and increase its current share. Although in the ever growing global market perspective, it is vital to retain maximum number of customer.

3 MBA (D) – Principles of Marketing – Group Marketers

Market Description: The Pakistani consumer market & customers, both have a unique & dynamic perspective, which is difficult to relate to other countries and cultures. The cultural value and importance of tea are strongly rooted in both urban & rural population. The use of milk in tea is a custom, a cultural norm which is different from tea’s origin, where it is used rarely with milk (black tea). The taste spectrum is concentrated with dairy milk, the tea whitener concept is still not excepted widely across the country. NESTLÉ® EVERYDAY® being the local pioneer in this domain has successfully developed taste for tea whitener and acceptability among the urban population. In general, the tea whitener market can be divided into the following categories:

� Corporate Sector (Offices & Companies) � Instant tea at stalls (made with tea bags) � Households (Mixed / kettle tea)

Product Review: Main features are:

� The brand is available in a variety of pack sizes ranging from 5 to 1000 gm.

� The product is matchless in quality and has no match. � NESTLÉ® EVERYDAY® tea whitener, made from pure fresh milk gives you

that perfect rich taste that only specialized milk can, so you can enjoy the same delicious cup of tea each time!

4 MBA (D) – Principles of Marketing – Group Marketers

� For your convenience NESTLÉ® EVERYDAY® is available both in powder and liquid forms.

� NESTLÉ has introduced the milk powder which outshined others

because of its great taste, refrigeration; ready to drink, less volume, more stable shelf life.

Competitive Review: We live in a competitive world and must never forget that our customers have a choice. If they are not reverent of quality and reduction cost. Success can never be taken for granted. We must watch and learn from our competitors. If they do something better, we must improve our own performance. We can achieve competitive advantage through Quality. Engro Foods - Tarang Haleeb Foods - Candia Nestle Pakistan envisions that the company should develop an extremely motivated and professionally trained work force, which would drive growth through innovation and renovation. Special training programs have been designed for employees at each level to keep up with and develop this vision. The study concludes that Nestle has a significantly high growth rate (36%) and has grown and developed at a high pace in short span of time. On the other hand Haleeb has a market share of 28%. And Engrofoods having 21% the major contributor toward this growth and development are human resource, marketing and sales departments. The major contributor is its appropriate strategy particularly its relationship with the social and environmental sectors. Perhaps this is the reason that it in spite of being a multi-national has been well accepted in Pakistani culture. There are ample chances of its survival in future. Keeping new players such as Olper’s, and the old one’s like Haleeb, Nestle focused more on advertising. Nestle have been experiencing a constant increase in cost with raw material contributing the larger part of this increase. Haleeb is having their own suppliers so the raw material cost is bit low. Nestle maintained its value of gross profit margin around or above 30% to ensure that it has a strong control over its costs, and

5 MBA (D) – Principles of Marketing – Group Marketers

the efficiency of production. But on the other hand, Haleeb faced a bit of down fall when Olpers introduced their campaign. Channels & Logistics: Distribution system of Nestle is one of major source of competitive edge over its existing rivals. Nestle has its own distribution networks equipped with all necessary transportation facilities. They transport their products at major ten regional sales offices, which are situated at different cities of Pakistan. These sales office (distribution centers) have their own vans with sales people who sell and transport goods to the small retailers. SWOT Analysis: Strengths: The greatest strength of nestle is that it includes a culture that is team focused and an open door policy. Nestle focus on collectivism and performance orientation attitude which encourages employees to work harder. Another thing is high level of market share and that people all over the world trust and recognizes Nestle as a big brand name. Strength is that people trust on Nestle. It looks at achieving higher volumes by renovating existing products and innovating new products. Strength is that they are low cost operators which allow them to not only beat competition but also edging ahead operating excellence, innovation, renovation, product availability and communication are major strengths. IT is an important aspect that people all around the world are becoming more conscious about health, that’s why they prefer Nestle.

� The only brand in the area maintaining its quality and taste and having the same impact on its customer

� Economical � Pure Drinking Water in market (Free of chemicals)

Strong Brand Name Weaknesses: One major weakness of Nestle is that it is entering into markets that are already mature and can give a tough competition to new entrants. Nestle Plain Yogurt has proved to be a Nestle weakness because it has been unable to make its market place in USA. But Nestle by analyzing the sensitive areas can overcome its weaknesses.

� Communication is weak � Lack of Awareness

6 MBA (D) – Principles of Marketing – Group Marketers

Opportunities: Nestle in Pakistan has a great opportunity for expanding its markets because in Pakistan there is a large ready market of food and beverages due to trends of eating and the increasing .I t also has opportunities largely in China and India as well. Through proper marketing research Nestle can cash on to these opportunities. Concentrating on these areas can increase sales Increase in product line Threats: Nestle is facing the threats by worldwide community due to its violation of international marketing standards. Many conferences and campaigns have been held against Nestle in this regard which can damage the name and trust of its customers. Another threat is due to the increasing popularity of its competitor OLPERS in local and international markets.

� Segments are being shared by competitors � Uncertain conditions will effect the sales(diseases of animals) � Under cutting by competitors

Objectives & Issues: The strategic priorities of Nestle Pakistan are claimed to be focused on delivering shareholder value through the achievement of sustainable, capital efficient and profitable long-term growth. Improvements in profitability would be achieved with due respect to quality and safety standards at all times. In line with the above objective, Nestle Pakistan aims at growing into a number one food company in Pakistan in the shortest possible time with the unique ability to meet the needs of consumers of every age group - from infancy to old age, for nutrition and pleasure, through development of a large variety of food categories of products with highest quality. Marketing objectives are compatible with the overall corporate objectives of nestle. Company’s objective is to be the world’s largest and best branded food manufacturer while insuring that nestle name is synonymous with the products of the highest quality. Marketing Strategy:

The effective formulation of the marketing strategy depends on the proper match between the three key elements:

� Consumer � Quality

7 MBA (D) – Principles of Marketing – Group Marketers

� Competition

Every product on the shelf, every service and every customer contact helps to shape this image. A Nestlé brand name on a product is a promise to the customer that it is safe to consume, that it complies with all regulations and that it meets high standards of quality. Customers expect us to keep this promise every time. Under no circumstances will we compromise on the safety of a product and every effort must be made to avoid hazards to health. Likewise, compliance with all relevant laws and regulations is a must and is not negotiable. People, equipment and instruments are made available to ensure safety and conformity of Nestlé products at all times. The effort is worth it. Companies with huge quality standards make fewer mistakes, waste less time and money and are more productive. They also make higher profits. Quality is our most successful product. It is the key to our success, today and tomorrow.