Marketing Strategies of Nestle

“In the Name of Allah the All

Merciful, the Most Merciful.”

Acknowledgment:

We are very grateful to many people for their help and encouragement during the project & writing of this report. We especially want

Good Food, Good Life

to thank Sir M.Mubashir Hussain A ‘wan for giving us & helping us in this project.

TABLE OF CONTENTS:

MISSION STATEMENT

STORY OF NESTLE

DYNAMIC EXPANSION

BRANDS OF NESTLE


BOARD OF DIRECTORS

AUDIT COMMITTEE

NESTLE’S OBJECTIVES

MARKETING AND SALES

MARKET POSITION

NESTLE EVERYDAY

RESEARCH AND DEVELOPMENT

MARKETING MIX

PROBLEMS FACED BY NESTLE

RECOMMENDATIONS

SWOT ANALYSIS

FUTURE OF NESTLE

NESTLE STORY:


Nestle Pakistan is a subsidiary of nestle S.A a company of

Swiss origin headquartered in Vevey, Switzerland. It is a food processing company, registered on the Karachi and Lahore

stock exchanges. For 5 years in a row, the company has won a place among the top 25 companies of the Karachi stock

exchange.

Headquartered in Lahore the company operates 5 production facilities. Two of its factories in Sheikhupura and Kabirwala

are multi products factories. One factory in Islamabad and 2 in Karachi produce bottled water. Through its effective

marketing and vast sales and distribution network throughout the country, it ensures that its products are made available to consumers whenever, wherever and

however.

In the line with Nestlé’s global philosophy, Nestle Pakistan is proud of its commitment to excellence in product and safety and quality and providing value and services to its consumers. On the social front it is very responsible when it comes to environmentally sound business practices and corporate social responsibility.Nestle Pakistan operates in many ways but people products and brands are the main flag bearers of the company’s image.

INTRODUCTION TO NESTLE:

Today, Nestle is the world leading Food Company. Nestle headquarters is in Switzerland. Its international R&D network supports the products made in more than 500


factories in 86 countries. The Nestle factories are operating in the region of:

1. Africa2. America3. Asia4. Europe5. Oceania

Being a company dedicated to food from the beginning, Nestle remains sensitive to culinary and eating habits, and responds to specific nutritional problems, whilst also setting and matching new trends such as growing out-of-home consumption and caring about the well being of its consumers.

MEANING OF NESTLE: Henri Nestlé endowed his company with the symbol derived from his name. His family coat of arms, the nest with a mother bird protecting her young, became the Company's logo and a symbol of the Company's care and attitude to life-long nutrition. The Nestlé nest represents the nourishment, security and sense of family that are so essential to life.

HISTORY OF NESTLE:1866 -1905


http://www.nestle.com/All_About/History/1866_1905/1866-1905.htm

In the 1860s Henri Nestlé, a pharmacist, 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. People quickly recognized the value of the new product, after Nestlé's new formula saved the child's life, and soon, Farine Lactée Henri Nestlé was being sold in much of Europe.

1905-1918

In 1905 Nestlé merged with the Anglo-Swiss Condensed Milk Company. By the early 1900s, the company was operating factories in the United States, Britain, Germany and Spain. World War I created new demand for dairy products in the form of government contracts. By the end of the war, Nestlé's production had more than doubled.

1918 -1938

After the war Government contracts dried up and consumers switched back to fresh milk. However, Nestlé's management responded quickly, streamlining operations and reducing debt. The 1920s saw Nestlé's first expansion into new products, with chocolate the Company's second most important activity

1938 -1944

Nestlé felt the effects of World War II immediately. Profits dropped from $20 million in 1938 to $6 million in 1939. Factories were established in developing countries, particularly Latin America. Ironically, the war helped with the introduction of the Company's newest product, Nescafe, which was a staple drink of the US military. Nestlé's production and sales rose in the wartime economy.





1944 -1975

The end of World War II was the beginning of a dynamic phase for Nestlé. Growth accelerated and companies were acquired. In 1947 came the merger with Magi seasonings and soups. Crosse & Blackwell followed in 1950, as did Findus (1963), Libby's (1971) and Stouffer's (1973). Diversification came with a shareholding in L'Oréal in 1974.

1975 -1981

Nestlé's growth in the developing world partially offset a slowdown in the Company's traditional markets. Nestlé made its second venture outside the food industry by acquiring Alcon Laboratories Inc...

1981 -1996

Nestlé divested a number of businesses1980 / 1984. In 1984, Nestlé's improved bottom line allowed the Company to launch a new round of acquisitions, the most important being American food giant Carnation.

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. Since 1996 there have been acquisitions including San Pellegrino (1997), Spillers Pet foods (1998) and Ralston Purina (2002). There were two major acquisitions in North America, both in 2002: in July, Nestlé merged its U.S. ice cream business into Dreyer's, and in August, a USD 2.6bn acquisition was announced of Chef America, Inc.


http://www.nestle.com/All_About/History/1996_Future/1996-future.htm

http://www.nestle.com/All_About/History/1981_1995/1981+-+1995.htm



Nestle In Pakistan: Nestle have been serving Pakistani consumers since

1988, when our parent company Switzerland based on

Nestle first acquired share in Milkpak.

Nestle acquires 40% share in Milkpak.

In 1990, Sheikhupura factory starts the production of

Nido Milk Powder cereals; a plant is acquired at

Kabirwala.

1n 1992, Nestle takes over the running of company and

begins to develop its Milk collection network.

In 1996 Milkpak is renamed to Nestle Milkpak, Ltd.

In 1997, the Kabirwala plant becomes a fully owned unit

of Nestle Pakistan.

1n 1998, Nestle Milk collection system in Punjab

matures and company is able to buy all its Milk from

Formers instead of relying on contractors.

In 2005, Nestle Milkpak Ltd. Is renamed again Nestle

Pakistan.

Nestlé’s Vision: Good Food, Good Life

“At Nestle, we believe that research can help us to

make better food, so that people live a better life.”

Mission Statement:

“Nestle is dedicated to providing the best foods to people throughout their day,

throughout their lives, throughout the world. With our unique experience of anticipating consumers' needs and creating solutions, Nestle contributes to your well-being and

enhances your quality of life.”

Nestle is not only Switzerland's largest industrial company, but it is also the World's Largest Food Company. The mission statement emphasizes on the fact that Nestle products are available in nearly every country around the world. Wherever one may live, only Nestle can provide the best and most reliable food and beverage products to meet his/her needs throughout the day, throughout the life. Especially, people on the move want to be able to find good food wherever they are, whatever the time of day. They are often reassured that they will find well-known brands out of home.

This statement also reflects the image of high quality products that Nestle offers. Nestle has the advantage that it offers caterers, fast food chains and other restaurants a complete range of high quality ingredients, base products


and meal components, as well as leading consumer brands such as Nescafe. Quality is the cornerstone of the success of the Nestle Company. Everyday, millions of people all over the world show their trust in the company by choosing Nestle products. This trust comes from a quality image that has been built up for over a century. Therefore, the quality of the products ultimately enhances the quality of the consumer’s life.

In addition, the mission statement declares that Nestle has the ability to anticipate “…consumer’s needs and create solutions….” Nestle has proven this ability a number of times by introducing new products that were required by consumers. Especially, the launch of Nestle Pure Life in Pakistan proves the accuracy of this fact. In Pakistan, there was a need for safe and healthy drinking water and Nestle responded to this consumer need by introducing Nestle Pure Life.

Finally, it is quite evident that the organization has actually implemented its mission statement in the business practices that it carries out. Also, the mission statement has been an important guideline for any SBU that the firm has started and this is portrayed by the success that each SBU of Nestle enjoys.

How Nestle Define Marketing:Building customer relationship based on customer value and satisfaction is at the very heart of modern marketing. The two fold goals of Nestle marketing is to attract new


customers by providing superior value and to keep and grow the current customers by delivering satisfaction. Nestle defines marketing as:

“ A social and managerial process where by individual & groups obtains good food and good life through creating and exchanging products and values . ”

Nestlé’s Business Principle:

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, employees, consumers, and business partners.

Nestlé does not favor short-term profit at the expense of successful long-term business development.

Nestlé recognizes that its consumers have a sincere and legitimate interest in the behavior, beliefs and actions of the Company behind brands in which they place their trust and that without its consumers the Company would not exist.


Nestlé believes that, as a general rule, legislation is the

most effective safeguard of responsible conduct, although in certain areas, 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.

Nestlé is conscious of the fact that the success of a corporation is a reflection of the professionalism, conduct and the responsible attitude of its management and employees. Therefore recruitment of the right people and ongoing training and development are crucial.

Nestlé continues to maintain its commitment to follow and respect all applicable local laws in each of its markets.

DYNAMIC EXPANSION :

The history of Nestle includes the development of many

different products as well as acquisitions, mergers and the

purchasing of shares in companies, mainly abroad. Over the

course of the years, this enabled it to broaden its range of

products and diversify its operations, while at the same time

strengthening the economic foundations of the company.

Amongst the most important acquisitions were Carnation in

Los Angeles (milk, culinary products and pet foods) and

more recently Row tree Mackintosh in York (chocolate and


confectionery), Biotin in Perigee (pasta) as well as Perrier in

France (mineral water). Nestle, which does 98% of its

business outside Switzerland, also has interests in non-food

sectors, in cosmetics (a large share holding in L'Oreal) and

ophthalmic products (acquisition of Alcon Laboratories Inc.)

while continuing to give priority to food products.

Marketing Mix:Marketing Mix is defined as a set of controllable tactical

marketing tools that firm blends to produce the response it

wants in the target market. The marketing mix consists of

every thing the firm can do to influence the demand for its

products. The many possibilities can be collected into four

groups of variables known as the four P's that are as follows:


1- PRODUCT:Product stands for goods and services that the company

offers to target market. Nestlé kit Kat is in four sizes

including K.K Chunky, while Polo is in three sizes. The shape

and the color of the Kit Kat and Polo are quite attractive for

the customers. The labeling, packaging of the Kit Kat and

Polo includes the Nestlé brand and logo. The packaging

includes an expiry date and time along with a manufacture

date. Second part of labeling includes the quantity of


product in grams along with ingredients and contents of

chocolates and candies.

BRANDS IN PAKISTAN:

I. DAIRY PRODUCTS

NESTLE MILKPAK UHT MILK

Launched in 1981, it has become synonymous with quality

milk. Backed by a very strong brand name, aggressive

marketing and distribution plans, consistent quality and

availability through out the year, MILKPAK UHT has been

extremely successful. In September 1999, MILKPAK UHT milk

was launched as NESTLE MILKPAK UHT MILK. NESTLE

MILKPAK UHT MILK is available in three pack sizes of 1000,

500 and 250 ml.

MILKPAK BUTTER

A continuous butter-making machine was commissioned at

Kabirwala factory in the year 2000 to produce high quality

cultured butter. This new butter was an improvement upon

the earlier product and carries Nestle branding that endorses

its superior quality. It has an excellent taste and aroma and


is easy to spread.The new NESTLE BUTTER is available in two

pack sizes of 200g and 100g in new attractive packaging.

NESTLE PLAIN YOGURT

Launched in November 2000 in Lahore, NESTLE Plain Yogurt

is the latest addition to Nestle Milkpak's dairy family. Its

unique 'Stay Fresh seal and a 21-day shelf life gives the

brand a formidable competitive advantage. The brand

provides valuable access to future product launches in the

chilled product category through a dedicated chilled

distribution. In a very short time the brand has gained a

substantial market share. Through future expansion into

markets other than Lahore and a strong marketing and sales

support, NESTLE Plain Yogurt will undoubtedly grow into a

strong brand and, in time, will achieve the status of market

leader.

MILKPAK UHT CREAM

MILKPAK UHT CREAM was introduced under the MILKPAK

brand in 1986. It is available in 200-ml pack size in an

attractive slim pack. The consumer trust in the brand name

and the product has ensured its dominant share in the


cream category.MILKPAK CREAM was also introduced in an

economical 1000ml pack size in the year 2000. This SKU has

been developed for Food Services to cover institutions using

large quantities of fresh cream.

MILKPAK DESl GHEE

MILKPAK DESI GHEE was introduced in 1986 in tin packaging.

The packaging was later changed to Tetra Pak. However, in

line with the current market trend, MILKPAK DESI GHEE was

relaunched in 1Kg tin packaging in the year2000. The

product was also introduced in 16kg tin packing to tap the

huge potential of loose desi ghee.

NESTLE EVERYDAY

To target the massive potential offered by the tea-whitening

segment, NESTLE EVERYDAY tea whitener was launched in

1992. Supported by aggressive marketing using multi-media

activities, focused distribution with sampling drives and

excellent consumer acceptance, the brand has shown strong

growth and holds good promise for the future.

NESTLE NIDO

NESTLE NIDO has been present in the Pakistan market since

early 70's and on account of the consumer confidence in its


quality it has become a pillar of Nestlé’s success. Local

production commenced in1990 and within a short time the

brand achieved market leader status in the full cream milk

powder category. Made from very superior quality milk and

with the addition of vitamins A and D, NESTLE NIDO is the

best quality milk for growing children. The brand has now

launched a low unit priced SKU that offers half a liter of

quality milk at a very affordable price. NESTLE NIDO is well

on its way to becoming a mega brand.

II. CHOCOLATE DRINKS

MILO POWDER

To provide convenience to consumers, NESTLE MILO was

launched in its new 130gm. SKU in an attractive airtight jar

in February2000. This was done with a view to bring our

packaging in line with the industry practice of making milk

fortifiers and modifiers available in jars and tins and to

reverse the trend of consumer preference for imported MILO

or similar products over local MILO. Consumer response to

the new initiative has been very positive.


MILO RTD

To cater for consumer convenience, MILO RTD (ready to

drink) was launched in 1995 and is now available in an

attractive 180ml slim pack. Popular with all age groups,

especially among the growing segment of nutrition

conscious consumers, it is an excellent substitute for cold

drinks.

III. COFFEE

NESCAFE CLASSIC

NESCAFE, Nestlé’s international flagship brand, is locally

repacked and marketed in 2gm. and25gm. Sachet, 75gm.

bottles and 500gm. Soft packs. The brand enjoys a special

position in the country's coffee consuming segment.

NESCAFE FROTHE

NESCAFE Frothe (Original), a premix in 18gm. single serve

sachet, was launched in January 2000. The product profile

was developed through consumer research and was


accordingly offered as a sweet, creamy and foamy coffee.

Encouraged by extremely good consumer response to this

cappuccino style coffee, French Vanilla and Mocha flavors

were introduced in November to offer a wider choice and to

enhance the young and fashionable image of this mixes

category.

NESCAFE FRAPPE

To promote summer consumption of coffee and to change

consumer perception that coffee is only a winter beverage,

NESCAFE Frappe was launched in June 3000. This iced,

creamy, ready-to-drink coffee in180ml slim pack was

positioned to appeal to the youth and gain a strong share

from other summer beverages. The launch was extensively

supported by promotional programs in major towns and the

product is fast gaining in popularity.

IV. FRUIT DRINKS

FROST

A well-known brand, FROST was introduced in 1986 and has

the largest share of the countrywide market. Positioned as a

cold drink and alternate to cola drinks, its strength lies in the

convenience attached to its usage.


NESTLE JUICES

Encouraged by the consumer response to NESTLE ORANGE

JUICE that was launched in 1996, the category of NESTLE

juices was expanded with the introduction of Mango-Orange

and Mango flavors in the year 2000. This has further

strengthened the position of Nestle as leader in the value

added/premium drinks market. Consumer to gain further.

V. DIETETIC & INFANT PRODUCTS

LACTOGEN

LACTOGEN 1 and LACTOGEN 2 are infant and follow-up

formulae launched in 1991 and are available in two sizes.

The brands provide both affordability and quality.

CERELAC

Launched in 1989, CERELAC is the dominant player in the

growing infant cereal market. Available in 5 flavors, the

brand provides balanced nutrition to infants from 4 months

onwards


NESTLE RICE

An affordable starter weaning cereal, NESTLE RICE offers the

flexibility of preparation with a variety of meals. Gluten free,

the brand is available in 125 gm. packs and is specially

suited to the needs of infants from 4 months onwards. It was

launched in 1994.

NESTLE WHEAT

NESTLE WHEAT is a wheat-based infant cereal without milk,

for infants of 4 months and above. It was launched in 1997

and is available in packs of 125 and 250 gm.

NESLAC

NESLAC is a growing-up milk, formulated specially for 1 to 4

year olds. It contains just the right balance of proteins,

calcium, iron, vitamins and essential minerals in order to

cater to the nutritional needs of a growing child during this

special age. The product was launched in 1994.

VI. CULINARY PRODUCTS

MAGGI 2-MINUTE NOODLES


Fast to cook, good to eat - MAGGI 2-MINUTE NOODLES were

launched with local production in 1992 and in doing so

Nestle pioneered the category of instant noodles in Pakistan.

MAGGI 2-MINUTE NOODLES have special appeal for children,

are fun to eat and offer a range of interesting flavors,

namely: Chicken, Masala, Chilly and Chatkhara. Affordably

priced and backed by focused marketing activities, MAGGI

NOODLES have shown good progress in 2000.

MAGGI COLD SAUCES

Nestle entered the Cold Sauces' category in 1999 with

the launch of MAGGI Ketchup, MAGGI Mirch Maza and MAGGI

Khatti Meethi - the first Imli sauce in Pakistan. The innovative

taste of Khatti Meethi together with the more traditional

tastes of Ketchup and Mirch Maza, were received well by the

consumers.

Other Brands Of Nestle:Quality is an essential ingredient in all the Nestlé brands and

also Nestlé brands maintain nutritional balance in a fast pace


world, that is why people around the globe choose. The

detail of the Nestlé brand is as follows:

Baby foods (Nestlé Cerelac, NAN)

Breakfast cereals (Nestlé Cereals)

Dairy products (Milkpak, NIDO, Nespray, Nestlé Yogurts,

Everyday)

Ice-creams (Movenpick, Dreyer’s)

Chocolate confectionary (Kit Kat, Smarties, Toffo)

Beverages (Nescafe, Milo, Nestlé juices)

Food service (Nestlé Jumbo Bottle)

Prepared foods (Maggi, Powered Soups)

Bottled water ( Nestlé Pure Life, Nestlé Aquarral)

Pet care (Pro Plan, Purine, ONE, Fancy feast, Dog Chow,

Cat Chow, Felix, Alpo)


Pharmaceuticals (Ophthalmic drugs, lens-care solutions

& optical surgical Instruments)


2- PRICE:

The amount of money charged for a product or service, or

sums of the values that consumers exchange for the benefits

of having or using the product or services. The price of

Nestlé Kit Kat and Polo varies increases with the increase in

its size.

3- PLACING:Placing stands for company's activities that make the product available to the target consumer. Nestlé' distribution is using the direct distribution channel to supply confectionary products weekly to the retailers.

4- PROMOTION:


Producing a quality product, pricing it attractively and

making it available for the target consumer is not the only

problem companies need to solve. Modern era is the era of

communication with customer, assuring customer

satisfaction, demands for personal and non-personal

communication with the target customer to build a

relationship with them. In an area-storming activity, giving

out products free, gift hampers, attracts new customers;

kites depending on the season (for existing and potential

customers) are given. The basic purpose is to explore the

area that is being unexposed and to bring awareness in the

people.

Questionnaire:

PRODUCT:

Q: When was Nestle Instant Milk launched in the market?

A: Nestle first launched its powder milk in the market in

2003 and then came the liquid powder.


Q: W hat are the specific features of the product that makes

it different from other similar products present in the

market?

A: Nestle has introduced the milk powder which outshined

others because of its great taste, refrigeration, ready to

drink, less volume, more stable shelf life.

Q: Is the product manufactured locally or imported?

A: The entire production of the Nestle Everyday is carried

out in Pakistan at Sheikhupura and Kabianwala.

Q: What is the role of Research and Development

department in the development of the product?

A: At Nestle the Research and Development department is

called as the “APPLICATION GROUP”. No other company

matches the R&D presence of Nestle. No other company

dedicates so many human and financial resources to R&D as

Nestle.

Q: Is the technology in making the products also local?

A: No the technology is imported and is latest.


Q: Did Nestle made any changes in the product or its

manufacturing process since its launch?

A: Yes, the factory mil powders spray drying capacity was

doubled in 1999 with commissioning of new evaporator.

Q: When Nestle launched the product, do its sales excel or

fell short of the company sales targets?

A: the actual target is a company’s secret that will not be

disclosed. But we received an overwhelming acceptance and

liking of the product.

Q: Is Nestle instant milk good for health; is it according to

international health standards?

A: Over many years company’s primary concern has been to

improve the quality and volume of milk for UHT processing

and other milk based products.

Q: What is the target market of product?

A: The target market of the product is definitely he tea

drinkers who have a choice and capacity for the best taste.

Q: Did the company ever have some problems with the

product?

A: There was a problem of segmentation but it was quickly

taken into notice and the problem was readily removed.


Q: Did the company have any special concept behind

launching the product?

A: It is designed to be used in general but it is popular

mostly in offices and cafés for tea purposes.

Q: Did Nestle receive any complaints about the product

ever?

A: yes, but now the error rate has been reduced to zero.

2004 --------------------------- 3 complaints

2005 --------------------------- 6 complaints

2006 --------------------------- 4 complaints

2007 ---------------------------- 2 complaints

Q: What is the current position of the product in the market?

A: Well the product is matchless in quality and has no

match. It has a sufficient name and place in the market.

Q: Do the company donate any money from its product

sales?

A: On the basis of profit margin Nestle seldom make

donations o non- profit organizations and charitable

institutions.


Q: How do you make sure that the cows which are milked

are disinfected?

Nestle has its own diary farms from which we collect milk

and we have a special team of veterans who regularly inject

animals against epidemic diseases.

Q: what about the packing of the product, any

specifications?

A: Yes the Nestle logo is a must, other than that the product

is made available in convenient sizes and attractive colors.

The WHITE color is the chief color to depict the color f milk.

Q: Who are the major competitors of product?

A: competitors are Olpers (Angro) and Halib milk.

Q: Who are the industrial consumers of Nestle Everyday

instant milk?

A: PIA, MC-DONALDS and PEARL CONTINENTAL Pakistan.

PRICE:


Q: How do you set prices for your products?

A: We set prices of our own because Nestle is the trend

setter in the market.

Q: What is the profit margin of the product?

A: The profit margin is usually high because of the high

quality of the product.

Q: Does the prices fluctuate or they remain stable?

A: As the product is a diary product so its prices generally

trend to fluctuate.

Q: On what scale prices are fixed?

A: The prices are fixed on a reasonable scale so that

majority of public can afford.

Q: Does competitors prices bother your price policy?

A: Not really, we set price of our own.

Q: Do you give price discounts?

A: Not to the final consumers but it can be considered for

the he organizational consumers like Nestle has given

discounts to PIA.

Q: Do you have any price refund policy?


A: No, we never return the paid money back. If the claim is

valid then we can replace the products.

PROMOTION:Q: What are the channels adopted for promotion?

A: TV, News papers, magazines and doctors.

Q: What is the advertisement budget of the company?

A: It is preplanned b the start of financial year. It is kept

secret b the company.

Q: Who are the sponsors of the company?

A: Nestle does not have any sponsors.

Q: Does Nestle have any brand ambassador?

A: No, Nestle has no brand ambassador.

Q: What is the share of promotion in overall project?

A: It varies every year. Usually it is 40% of the product.

Q: What is the nature of marketing for the product?

A: The product is marketed aggressively in the market.


Q: Is there any online promotion methods?

A: In Pakistan, not really.

PLACEMENT:Q: Where are the outlets of product located?

A: These are located all over in Pakistan regardless of big

and small cities.

Q: Does the product is sold directly to the consumers or via

distributors?

A: The product is not sold directly t the customers because

of the extensive consumer groups.

Q: What are the insurance policies of companies?

A: Insurance policies are maintained but they are highly

confidential.

Q: What is the warehousing facilitation of company?

A: Nestle has its own warehouses for the storage of

products as well as it has also hired some warehouses.


Q: What are the transportation modes of the product?

A: Usually mode of transportation is road.

Q: Did customers or suppliers ever complaint about

shortage of Instant Milk in market?

A: No we have a well defined system to ensure that

products at right time are at right place.

Q: Does the company uses any E-distribution for the

product?

A: Due to the distribution problems that a number of online

firms face Nestle until now has no plans for E – distribution.

STRATEGIES FOR COMPETIOTIVE ADVANTAGES: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.

The customer comes firstWe want to win and keep customers: distributors, supermarkets, hotels, shopkeepers and the final consumers. They have very different requirements. Trade customers expect excellent service, correct information and timely delivery. Consumers consider taste, appearance and price when they make their choice. Our task is to understand what customers want and respond to their expectations rapidly and effectively. We serve various groups of consumers and there is demand for products at different levels of perceived quality and price. All customers, however, expect value for their money – good quality at a reasonable price. When offering quality to customers we also mean environmental quality. Nestlé shares society’s concern for the environment and is committed to environmentally sound business practices throughout the world.Customers are central to our business and we must always respect their needs and preferences.


Quality is a competitive advantageWe 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.

Quality is a joint effortOperating companies are fully responsible for maintaining agreed quality standards. Not only Production units, but also Marketing, Purchasing, Distribution and Sales have a vital role to play in providing quality to customers. This implies a thorough knowledge of the products and services we offer. Quality units at different levels of the organization provide specific support, promote quality awareness, assume guardianship and audit the system. Quality departments monitor operations against agreed standards and must intervene in case of non-conformity. Quality policy and principles, the mandatory standards and the recommended tools for implementation are laid down in the Nestlé Quality System that is applicable throughout the group. Further directions are given through instructions, norms and guidelines, often specific to a product. Our business products, such as raw material producers, packaging suppliers, contract manufacturers and distributors are expected to share our concern for Quality. They too must set up an adequate quality system, so as to meet our requirements consistently.Every function and department in the company as well as our business partners must share the quality efforts.


Quality is made by peopleAdequate equipment, procedures and systems are needed to make Quality; so are involved and dedicated people. Each and every Nestlé employee must do his best to provide quality products and services. Training and teamwork are crucial to the successful implementation of high quality standards. Continuous training ensures that everyone understands his tasks and has the necessary skills to carry them out. Teamwork allows us to achieve results that are greater than the sum of individual efforts. We motivate employees by demonstrating management commitment to Quality, by setting challenging goals

and by giving them responsibility and recognition. It is through employee involvement that goals and targets can be achieved in the shortest time. Quality must be a way of life for everyone in the company.

Quality is actionQuality is the result of deliberate action. It is the responsibility of senior managers to communicate the quality objectives and to provide the resources necessary for their implementation. It is then up to all employees to make Quality happen throughout the company. Progress is followed by listening to our customers and by measuring our performance. Shortcomings and mistakes must be analyzed and corrected. Problems must be anticipated and prevented before they occur. We also must identify and take advantage of opportunities. To stand still is to fall behind. So we must strive for continuous improvement in every area. It is


through many small improvements as well as through major breakthroughs that we will achieve excellence.

MARKET SEGMENTATION:To occupy a clear distinctive & desirable place related to competing mineral water in the minds of the target customers Nestle Pure Life segments its market on two bases:

Geographic segmentation Demographic segmentation

GEOGRAPHICAL SEGMENTATION:The Company segments its market geographically on divisional basis. They divide each division in different zones and every distributor is restricted to sale its products only in his own zone.


E.g. Lahore is divided into five zones like East, West, South, North, and South west.

DEMOGRAPHICAL FACTOR:If we look nestle pure life's demographic segmentation than we will find that our product is for every one. People from any area, any culture, any age, any sex, any belief and any income will drink water. It is not any luxury item which is used by a specific people.

Targeting:A specific demographic target market was not chosen for Nestle Pure Life; instead the goal was to develop a product to be used by consumers of all ages - from infants to seniors. It was intended as a family product especially for families living in large, polluted urban agglomerations that experience increasing difficulties finding safe, healthy drinking water. In fact, Nestle Pure Life's 0.5 L bottle is targeting to be also an alternative to soft drinks. Basically the target market of nestle water is those areas where the consumers having more awareness about pure life. As the people in villages having less

information about Nestle Pure Life. So targeting marketing depends on the awareness of the consumers.


SELETING TARGET MARKET

Target Market StrategiesUndifferentiated mass market.

Differentiated Segmented Marketing.

Concentrate Marketing.

Micro marketing or Individual Marketing.

PRODUCT LIFE CYCLE:If we look nestle pure life water in product life cycle than it easy to judge that it is at introduction stage. Because Nestle is the market pioneer and at this stage its profit is negative or low due to low sale and high distribution and promotion


expenses. Other major reason to be at introduction stage is unawareness in rural areas. The people are not aware to the pure life water that’s why their sale is low. They can bring change in product life cycle by effective promotion, by formulating new price strategies etc.

Nestle

Pure Life

Product Introduction growth maturity decline

Development

MARKETING ENVIRONMENT:

Internal environment Micro environment Macro environment


Internal Environment: In Nestle Internal environment ensures

Employees are on side with the goals of an organization.

They have direct impact on product quality, dependability and overall productivity.

They are internal market, which impact every department within an organization; a satisfied internal market will be better able to satisfy external market.


Nestle under the supervision of top management runs the departments of finance, operations, accounting, sales and marketing, research and development to achieve the goals of organization.

Micro Environment: In Nestle microenvironment includes:

a)Suppliers:Suppliers provide the resources like labor and material resources to produce goods and services. They add to customer overall value delivery system.

Labor supplies include handling of

Quantity of labor Quality of labor Labor strikes Labor relations

Material supplies deals with the

Quantity of material Quality of material Price of material Stability of material inputs Delivery delays

Nestle efficiently handles the quality, quantity, price and stability of both material and labor supplies. Management maps out the strategies for labor strikes, supply shortages and delays to avoid increasing the cost of production,


which can badly affect sales in short run and customer satisfaction in long run.

b) Marketing Intermediaries: It includes the firms that help the company to promote, sell and distribute its goods to final buyers.

The physical distribution firms determine the ways to store and ship goods to reach their destination.

Marketing service agencies including marketing research firms, advertising agencies and media firms are also hired to target and promote product to right market.

Financial intermediaries like banks, insurance companies helps to finance transactions and insure against risks associated with buying and selling of goods.

Nestle works in coordination with marketing intermediaries to make its product Pure Life Water available and visible to its valuable customers.

c) Customers:Nestle deals with the reseller customers who buy the product Pure Life to resell at a reasonable profit.

Macro Environment: Macro environment include political, cultural, economical factors but as for as Nestle Pure Life Water is concern none of above factors affect on it. Because it is not at luxury item


they are selling necessities of life which can never be affected.

ORGANIZATION STRUCTURE:

Nestle Pakistan Limited - Company Profile Snapshot

Company

Profile:

Nestle Pakistan Limited

Ticker: NESTLE

Exchanges

:

KAR

2007

Sales:

32,031,000,000

Major

Industry:

Food & Beverages

Sub

Industry:

Diversified Food


Country: PAKISTAN

Employee

s:

2174

SWOT Analysis Of Nestle:

STRENGTHS ----------------- TO BUILD

ON

WEAKNESESS ----------------- TO COVE

ON

OPPORTUNITIES---------------TO

CAPTURE

THREATS ----------------------- TO

DEFEND ON


STRENGHTS: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.

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

WEAKNESESS: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

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.


RECOMMENDATIONS:There are few recommendations that are recommended if the project is to be conducted again in future.

Employees should be trained according to the changing

standards of the organization.

Company should conduct survey from time to time to

according to which changes can be introduced in the

organization to stay updated in the market.

They should introduce creativity into the work, so that

the employees can do their work active mindedly.

Employees should be given compensation in order to

keep them loyal.

Employees should be more involved in decision making

to become more differentiated.

Company should provide incentives to shop keepers.


FUTURE OF NESTLE:Nestle is today the world’s largest food and beverage

company with its mission to provide healthier lifestyle. It has

launched many products in Pakistan the majority of which

are popular and among the market leaders. Nestle is

installing new plants and importing latest technologies to

improve. Moreover, innovation is one of its greatest

strengths so it has a bright future in Pakistan.

REFERENCES:

We have collected all the data from the

following sources,


Marketing Strategies of Nestle

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