Marketing Management

Final Project Report

Nestle Milk Pak

Vanquishers

Sonia Bashir (G.L) BB053053

Muhammad Umer Ali BB053030

Junaid Khalid BB053042

At first we are so thankful to All Mighty Allah who gave us the power to do this project. And after this we are so thankful to our respected teacher Mr.Abid Raheem Khawaja who gave us a chance to do this kind project to enhance our knowledge & skill of work. At last we are also thankful to all of those who supported us in completing this project. We would like to specially thank Mr. Moazam Rasool, Sales Manager Nestle, for his help.

This Report is dedicated to our parents.

Table of contentsIntroduction of Nestle..........................................................................................................2Vision Statement of Nestle: Milkpak..................................................................................4Summary of Operations of Nestle Milkpak.........................................................................6What is marketed?.............................................................................................................10Key Customer Markets......................................................................................................10How Business and Marketing are changing......................................................................10Marketing Mix...................................................................................................................12Value Delivery Process......................................................................................................18Choose the Value...............................................................................................................18Provide Value....................................................................................................................19The Value Chain................................................................................................................20Core competencies.............................................................................................................21The Central Role of Strategic Planning.............................................................................22Defining the business.........................................................................................................22Sales Information System..................................................................................................24Analyzing the Macroenvironment.....................................................................................26Step 1: Defining the Problem, the Decision Alternatives and Research Objectives.........30Step 2: Develop the Research Plan....................................................................................30Step 3: Collect Information...............................................................................................31Step 4: Analyze the Information........................................................................................32Step 5: Present the Findings..............................................................................................32Step 6: Make the Decision.................................................................................................32Overcoming Barriers to Use of Marketing Research........................................................32Customer Value Proposition..............................................................................................36Milk Collection in Punjab..................................................................................................39Factors that Effect Consumer Behavior.............................................................................43Stages of the Consumer Buying Process...........................................................................46Business Market of Nestle Milkpak..................................................................................50Buying Situations in Nestle Milkpak.................................................................................50Supply Chain Management Orientation............................................................................51Stages in the Buying Process.............................................................................................51Local Marketing.................................................................................................................54Segmenting Consumer Market..........................................................................................54Sequential Segmentation...................................................................................................56Evaluating and Selecting Market Segments......................................................................57Differentiated Marketing Costs.........................................................................................58Brand Name of Nestle Milkpak.........................................................................................60Brand Equity......................................................................................................................61Brand Elements of Nestle Milkpak....................................................................................62Brand Portfolio Nestle.......................................................................................................63Brand Strategy...................................................................................................................63Measuring Brand Equity....................................................................................................65Managing Brand Equity of Nestle Milkpak.......................................................................66Devising a Brand Strategy of Nestle Milkpak...................................................................67

Positioning of Nestle Milkpak...........................................................................................70Deliveribility Criteria of Nestle Milkpak..........................................................................71Differentiation Strategies of Nestle MilkPak....................................................................71Threat of Intense Segment Rivalry....................................................................................75Industry Concept of Competition......................................................................................75Market Concept of Competition........................................................................................76Analyzing Competitors......................................................................................................76Other Competitive Strategies.............................................................................................77Choosing a Specific Attack Strategy.................................................................................78Product Characteristics and classifications........................................................................80Product levels: the customer value Hierarchy...................................................................80Product Classifications......................................................................................................81Durability and Tangibility.................................................................................................81Product Differentiation......................................................................................................81Products and Brand relationships......................................................................................82The Product Hierarchy.......................................................................................................82Product system and mixes.................................................................................................83Prices of Nestle Milkpak...................................................................................................86Steps by Nestle Milkpak while setting Prices....................................................................86Selecting the Price Objectives...........................................................................................86Determining Demand.........................................................................................................88Estimating Costs................................................................................................................89Designing and Managing Value Networks and Channels.................................................91Marketing Channels of Nestle Milkpak.............................................................................91Marketing Communication of Nestle Milkpak..................................................................91Communication Platforms.................................................................................................91Steps in Developing Effective Communication................................................................92Identifying Target Customers............................................................................................92Stage in the Product Life Cycle.........................................................................................94

Nestle Milk Pak

INTRODUCTION

Vanquishers 1

Nestle Milk Pak

Introduction of NestleNestlé is a multinational packaged food company, founded and headquartered in Switzerland. It was set up in 1866 by Henri Nestlé to provide an infant food product. Several of Nestlé's brands are globally renowned, which made the company a global market leader in many product lines, including milk, chocolate, confectionery, bottledwater, coffee, creamer, food seasoning and pet foods. Nestlé's corporate reputation is one of the highest among Switzerland's largest companies.The company stock is listed on the SWX Swiss Exchange.

Nestlé is the world's leading food company. Since it was set up by Henri Nestlé to provide an infant food product, it has been associated with providing high quality, customer and consumer focused products. In recent years it has focused on becoming a nutrition, health and wellness company. Wellness is about supporting people to live more healthy lives e.g. through the development of probiotic yoghurts that help maintain the balance of the digestive system.

The company is a world leader in research and development, and Nestlé's scientists work in all areas to create healthier and more nutritious foods. Nestle is also serving its thousands of customers in pakistan very efficiently. In pakistan Nestle is considered as a symbol of Quality by its customers. Nestle had many

Vanquishers 2

Nestle Milk Pak

brand loyal customers in all over pakistan.

Vanquishers 3

Nestle Milk Pak

VISION

STATEMENT

Vanquishers 4

Vision Statement of Nestle: Milkpak

The strategic properties of Nestle Milkpak are focused on delivering shareholder value through the achievement of sustainable, capital efficient and profitable long term growth. Improvements in profitability will be achieved while respecting quality and safety standards at all the time.

In line with this objective, Nestle Milkpak envisions to growth in the shortest possible time in to the number one food company in Pakistan with the unique ability to meet the needs of consumers of every age group – from infancy to old age, for nutrition and pleasure, through development of a large variety of food categories of the highest quality.

Nestle Milkpak envisions the company to develop an extremely motivated and professionally trained workforce, which would drive growth through innovation and renovation.

It aspires, as a respected corporate citizen, to continue playing a significant role in the social and environmental sectors of the country.

OPERATIONS

Summary of Operations of Nestle Milkpak

Production

Joint venture between Milkpak Ltd. And Nestle S.A. came about in 1988 and the company was renamed as Nestle Milkpak Ltd. Prior to that, Milkpak Ltd., produced UHT milk, butter, cream, desi ghee and fruit drinks at Sheikhupura factory. 21 branded product lines were added during 1990 to 1998. Nestle Milkpak operates the largest and an extremely efficient milk collection system in the country, which enables it to collect the highest quality milk for production of UHT and powder milks as well as other milk based products. The company voluntarily provides extension services of farmers in the area of animal husbandry and livestock breed improvement

Exports

Nestle Milkpak entered the export market in 1993 with exports of Rs.3.2 million to Afghanistan. Growing steadily over the years, its exports stood at Rs.321 million by June, 1998. Currently, its overseas markets include the UAE, UK, USA, Sri Lanka, Malaysia, Bangladesh, Afghanistan and Central Asian States.

Contribution to other Sectors

In the social sector, the company provides over 1,100 job opportunities for skilled, unskilled and professional manpower. It plays a remarkable role in vitalizing the rural economy by disbursing over Rs.1.37 billion annually against milk purchases, benefiting over five million household members of the dairy farmers.

The Environment

In line with its universal commitment, Nestle Milkpak fully complies with its responsibilities forwards the protection of the environment. By making available the processed and packaged dairy products to urban consumers, it helps in arresting urban environmental degradation caused by the influx of cattle into towns. Within its own production facilities, the company takes pains to operate an elaborate water treatment system to cleanse its industrial wastewater before releasing it for irrigation.

The Extensive Service of Nestle Milkpak

Nestlé Milkpak helped to establish an Extension Service, staffed by qualified veterinary surgeons. They have provided free consultation on diagnosis and treatment, undertaken vaccination at cost and held lectures on measures to enhance the quality and quantity of milk. Last year 130,000 animals were vaccinated to prevent the spread of HS disease

during the rainy season, 80,000 were treated for routine diseases and a de-worming campaign treated 85,000 livestock

The Extension Service has played a key role in encouraging farmers to establish a co-operative programmed to improve the breeding quality of livestock. So far, the results, using artificial insemination and other methods, have been successful and more farmers are joining the scheme.

Animal nutrition had been another area suffering from under-development. Now, farmers are given advice on how to use cotton seed cake and molasses as feeding supplements. Independently it would be difficult for farmers to buy these products; however Nestlé Milkpak imports high yield seeds, cuttings of fodder crops and bulk quantities of sugar and sell them to farmers at cost. The Extension Service is helping to educate and encourage farmers to utilize waste corn to make silage.

REPORT

UUNDERSTANDING

MARKETING MANAGEMENT

What is marketed?

Nestle promote their products through various ways they directly promote their product, they also promote through events, experiences, persons, and places.

Goods

Nestle is marketing different food products and it is a multinational firm. Nestle Milkpak is a physical product, it is the most marketed product of nestle food in Pakistan as compared to its other products.

Types of Demand

Full Demand

Nestle Milkpak is receiving full response from their customers, all the Milkpak stock places in the market sell out in a projected time therefore Nestle Milkpak have the full

Key Customer Markets

Customer Markets

The main forces of Nestle Milkpak are the consumer markets which are the end users of this product. Nestle is trying hard in order to create a superior brand image.

How Business and Marketing are changing

Nestle Milkpak is coping with the change they know how to exist in the market for long time and how to maintain and grow their market shares. Nestle Milkpak come closer to their customers and creating more satisfying solutions to customer needs.

Changing Technology

As we are in the 21st century technology is changing with time to time. Nestle is aware of these changes and they are adopting the new technology to increase their efficiency in production and promotion. They are using internet to advertise their products.

Globalization

Nestle products are available all over the major countries but Nestle Milkpak is only available in Pakistan. Nestle milk exist in other countries with different names.

Company’s Orientation towards Marketplace

The Product Concept

Nestle Milkpak Believe in the product concept, they give priority to the quality of the product instead of selling more and more, due to their concentration on quality they are able to attract their customers mind and fulfilling their need.

Marketing Concept

Nestle Milkpak is practicing the marketing concept. Nestle markets Milkpak according to the needs of the buyers. The company focuses on satisfying the needs of the target customers in the best possible way. Nestle also ensures the availability of Milkpak all over Pakistan. Nestle never compromises on the quality of Milkpak and there are special laboratories to keep a check on the quality of the product.

Holistic Marketing

If your way of marketing the product is not good then you will waste your money. Nestle Milkpak is developing designing and implementing the marketing programs very efficiently. They have the management team which plan the strategies that how will market their product to aware the customers about new offerings.

Relationship Marketing

Nestle also aims at building mutually satisfying long term relationships with key parties i.e. customers, suppliers, distributors and other key parties in order to earn and retain their business. Nestle really cares about its customers and treats them like valuable assets of the company. Nestle has a special department for this purpose called the consumer relationship department. This department deals with the complaints and complements of consumers towards the product or the company and responds towards them. Nestle also focuses on building the best relationships with its suppliers and distributors because the company knows that these are the backbone of the company and without their active involvement nothing could be done.

Internal Marketing

Nestle Milkpak also work on the internal management, by hiring, training and motivating employees, because if the employees are motivated they will motive the customers to buy their product, they should know how to market the product to attract the customer attentions. Top management of Nestle Milk knows how to communicate with the lower management to make them alert about the steps which are necessary to obtain.

Social responsibility Marketing

Nestle Milkpak have the broader concerns about the ethical, environmental legal, and social context of marketing activities and programs.

Marketing Mix

Product

Nestle Milkpak is our selected product.

Price

The price of all the milk brands available in the market is controlled by a price regulatory authority. All the milk brands have the same price.

Placement

Nestle also focuses on the placement of Milkpak and its placement is according to the target market. Nestle distribution channels also work on the placement of the product. Nestle Milkpak is available all over Pakistan. The distribution channels also work on the in shop placement of the product from where the product is clearly visible by the customers.

PromotionNestle designs its promotion programs in order to get response from the consumer. Most of the promotion programs are designed to involve the consumers. Promotion activities are performed to attract the target costumers towards the product. Nestle has a separate Consumer Relation Department. This department also performs different type of activities in order to involve the target consumers and make them aware about Nestle Milkpak. Different teams are formed which arrange activities like road shows. Different functions are also arranged in schools to aware the children that milk should be a part of their daily diet

Promotion

The promotional strategies of Nestle Milkpak are designed according to the areas. These promotional strategies can vary from city to city. The advertisement material used for the promotion of Nestle Milkpak is designed by the special agencies hired for this purpose. These agencies design the promotional programs and then these programs are approved by the Nestle Headquarter and then these programs are implemented. The sales force and sales network of nestle is very strong that is why nestle Milkpak is available all over Pakistan. This shows the strength of the sales force of Nestle. Public rationing activities like road shows etc are organized in order to involve the general public and attract them towards the Nestle Milkpak.

Customer Solution

Nestle Milkpak is a product according to consumer demand. Nestle Milkpak is designed to provide the consumer with best quality and durable product. There is no need to boil it and it is also very good from a hygienic point of view. Nestle Milkpak id different from its competitor milk brands available in the market in quality. It contains less fats and its thickness is normal. Everybody can use Nestle Milkpak

Cost

The major cost which nestle Milkpak has to bear is the milk collection cost. But now the company is concentrating on building farmhouses of their own and for this reason Nestle has bought 10000 Australian cows as the first step. This step will not only reduce the company’s cost but will also help to reduce the shortage of milk. Then there is the processing cost. This cost includes all the labor salaries, plant and equipment cost. Nestle Milkpak has purchased new plants and advanced technology is being used by the company. The company also bears a storage cost. There are special storage centers for milk where temperature is controlled in order to keep the milk fresh and good.

Convenience

Nestle provides convenience to its customers. Nestle ensures to make Milkpak available throughout the year. Nestle matches the demand with the supply in this case which increases the consumer satisfaction with the product. As nestle Milkpak is available in the market in different packaging in order to provide ease to the target consumers and they can have the quantity of milk according to their need. The packing of Milkpak also provides ease to the consumers. The tetra packed milk’s life is more then the fresh milk and also the quality is maintained. Milkpak can be opened easily and you can get the same fresh mil anytime.

Distributor Convenience

Milkpak also provides convenience to its stockiest and distributors. Nestle ensures that it always provides the fresh products to its stockiest. If there is some problem with the stock then the company easily replaces that in order to keep its goodwill among the target customers and the key parties.

Communication

Nestle Milkpak involves thee types of communication. These are as follows• External communication• Internal Communication• Feed back

External CommunicationExternal communication means the communication done by Nestle in order to attract its customers towards the product. External communication is used to communicate the product values to the customers. Different types of communication medium are used for external communication.

• Advertising– TV

TV ads are used for externally communicating the product values and creating awareness in the target market. In the TV advertisements of nestle Milkpak a whole family is shown because Milkpak is a family product and is fit for all.

– NewspapersNewspaper ads are also given by Nestle Milkpak in different well known newspapers. These ads are mostly given at different festivals or occasions like EID etc.

– RadioNestle also organizes radio shows in order to increase awareness about the benefits of milk usage in daily life. Milk is extremely important for all and at all ages.

• Events and experiencesNestle Milkpak is also advertised though different events and experiences. Nestle organizes different concerts through which Nestle Milkpak is advertised. In schools Milk Days are celebrated and mothers are invited and the products presented in front of then and there on the spot their quarries are solved about the product.

• Personal sellingAccording to Nestle personal selling is of more importance and more rewarding then any of the other promotional activities like TV ads.The reason behind this is that a TV ad costs a lot and is very much expensive. On the other hand printed posters and banners are also very costly and not given much importance. So the best to communicate their product to the end user is by involving the end user and getting its attraction so that is why the ads of nestle are less in number because they are concentrating more on public relationing.

External Communication

• Brand awarenessThe first objective is to create the awareness about the brand in the target customers. To inform that the product is available in the market and also about the key features of the product.

• Brand imageCommunication is also done to create a positive brand image in the mind of the target customers. This image creation is a big motivational factor which encourages a consumer to buy that product.

• Brand responsesExternal communication is done to get brand reposes from the target market. This phenomenon works in the same way as the Newton’s third Law of Motion “Every action has a reaction, equal in magnitude but opposite in direction”. The information communicated by the company is the action of the company and as a result the brand responses are the reactions which the company gets.

• Brand relationshipBrand relationship is also established through communicating the information about the brand to the target customers. This helps in getting the customers and having their attachment with the brand.

Internal Communication

• TrainingsDifferent types of training sessions are also organized with in the organizations. For these training sessions organization employees and outside trainers are hired. These training sessions are really very important because trainees learn new techniques through these training sessions. Trainees are also sent to different places to attend these training sessions.

• MeetingsMeetings are also arranged in order to discuss the company performance. And also the ways how Milkpak can be promoted to retain and increase its market share.

• SeminarsSeminars are also conducted by nestle. There are two types of seminars. Seminars which are conducted to increase the motivation level of organizational employees. Seminars are also conducted outside the organization in order to promote Nestle Milkpak and communicate its advantages to the target customer.

Feed back

• From the collection unitThe company gets feedback from the collection unit about the milk collection in the concerned areas. This feedback also contains the information about the competitor activities in those areas. This data is then

processed and information is extracted from that. This information is then used by the management for decision making.

• From the sales unitFeedback is also taken from the sales unit. This feedback is concerned with the sales in the different areas. It also contains the info about what other competitors are doing to penetrate into the market. Decisions are made on the behalf of extracted information from this data.

• From CustomerFeedback from the customer is very much helpful. The customer tells about the problems in the product. This is very much positive because through this the company can continuously move towards the betterment in the product. Nestle Milkpak’s positive response to the customer also helps to make the customer realize that the company cares about him

NESTLE & 21ST CENTUREY

Value Delivery Process

We can define that we have two ways of value delivery process, one is traditional and second one is modern. In traditional process only companies concentrate on their sales not on their customers satisfaction but modern value delivery process are such process, through which companies concentrate on their customers values not on their sales volumes.

Choose the ValueCustomer Segmentation Market Selection/focusValue Positioning

Provide the value

Product DevelopmentServices Development.PricesSourcing Making Distribution services

Communicate the Value

Sales ForcesSales PromotionAdvertising

Nestle Milk Pak always focus on this Value Delivery Process.

Choose the Value

Customer Segmentation

Nestle Milk Pak segments their customer on the basis of users and market demand, we can define it into two ways They increase their Milk Pak product line as

Nestlé Milk Pak Every day UHT Nesvita

They also segmentized their product on SKU basis, and they increase their product depth as follow

Milk Pak250 ml500 ml1000 ml1500 ml

Every Day UHT125 ml200 ml375 ml

Nesvita (HCLF)1000 ml500 ml 200 ml

Market Selection/focus

Every sales and marketing department of any organization have different criteria and different focus in selection of their target customer, so Nestle Mil Pak focusing on upper lower, middle and lower middle class market. And they also focusing on such customers who want to use quality product and health conscious and they also have purchasing power. They tried to target all age groups through their SKU division.

Value Positioning

Now Nestle Milk Pak are positioning it self as a number 1 brand all over the country, present their self a top quality brand, and they a proper and strong shelf space, reasonable prices as per competition, availability every where.

Provide Value

Product Development

As per observation an need of their customers, Milk Pak get further development days by day.

Services Development

Nestle Milk Pak is available through out country through their strong distribution system.

Pricing

Nestle Milk Pak have reasonable prices as per their other competitors. They have following prices,

250 ml Rs. 12 500 ml Rs. 22 1000 ml Rs. 38 1500 ml Rs. 57

Distribution Services

Nestle Milk have well organized and established distribution system, and which providing services through out the Pakistan and making sure the availability of product.

Communication the Value

Sales ForcesNestle Pakistan have a sales force which monitor all brand activities and also Nestle Milk Pak. Sales forces hierarchy is as follow,

Sales promotions

Nestle Milk Pak have several sales promotion activities for retain in the markets, Milk Pak have several type of sales promotional activities as follow

Free sampling Special display drives Schemes Incentives for disturbers on achieving their targets Incentives for whole sellers and retailers on purchase of specified quantity Town storming. Branding activities. etc

Advertising

Nestle Milk Pak spending huge amount on media covering because this is the media time who move to the media with innovative idea can capture the market.

The Value Chain

“Value chain is a tool for identifying way to create more customers value”Milk Pak also try to delivery more and more customer value and value added services.

The Market Sensing Process

National Sales Manager

Zonal Sales Manager

Area Sales Manager

Territory Manager

Sales forces are playing role to get information for top management and top sales management then take action on this matters.

The New Offering Realization Process

In this process their brand management is totally involved.

The Customer Acquisition Process

To acquire new customers and to keep retain old, Nestle have planned several activity like, free sampling, free test drives, and Nestle also keeping a separate department named as Consumer Services. This department arrange small level of function in schools Mohullas, villages etc, where they present company’s product with effect presentation and to create awareness regarding products.

The Customer Relationship Management Process

Consumer Services Department is playing this role to develop and maintain relations. On other hands Nestle sales representative are most important source to manage the relations.

The fulfillment management process

Milk Pak all activities are accordingly this definition.

Core competencies

Nestle Milk Pak have following over competencies Quality Strong Distribution system Advance production system Strong Market knowledge of their Sales forces Expert Man forces

The Holistic Marketing Orientation and Customer Value

Value Exploration

“How can a company identify new value opportunities?”Nestle milk Pak continuously concentrate on their segmentation which horizontally and vertically.

Value Creation

“How can a company efficiently create more promising new value offerings?”Nestle Milk Pak providing quality products and make sure the availability of their products.

Value DeliveryDelivering value often means substantial investment in infrastructure and capabilities. The company must become proficient at customer relationship management. Customer relationship management allows the company to discover who its customer is how they behave and what they need or want. So nestle milk Pak delivering value delivery in sense of all above mentioned theory.

The Central Role of Strategic Planning

Successful marketing thus requires companies to have capabilities such as understanding customer value, creating customer value delivering customer value, capturing customers’ value and sustaining customer value. Nestle Milk Pak Corporate and division strategic planning

Corporate and Division Strategic Planning

Defining the Corporate Mission

“To provide quality product to their target market/consumers with reasonable profit”IndustryFMCGProducts and applicationsMilk Pak UHTCompetenceQuality, prices, strong distribution system. Market segmentMilk Pak segmentised their market on basis of usersGeographicalThey are targeting whole target market, and they are covering whole with their strong distributional systems.

Defining the business

Milk Pak, is supplying Milk to their customers

Gathering information

& decision making

Internal Records and Marketing IntelligenceThe internal marketing intelligence of Nestle Milkpak are well considered by the organization

Order to payment cycle

Payment cycle is divided in to two types one is collection from sales and one is payment to their milk suppliers, tables are as follow.

Payment receive cycle

Payment cycle to their milk suppliers

Sales Information System

For sales information nestle have a entirely separate department with the name of Sales Admin departments, which monitor and collect the information from handling agent and

Nestle Pakistan

Handling Agents

Distributors

Retailers and whole sellers

Nestle Pakistan

Milk Collection deptt.

Area Collectors

Milk Suppliers

distributors which consist on daily purchase and sales. Sales Admin Department, updates the information daily, and in this information collect they also generate some comparison with last year. They monitor daily bases sales and also follow all products and SKU, and which distributor or area not performing accordingly they give them proper feed back or some other backup information to their area managers and territory incharge to take some reasonable actions.

Database, Warehousing, Data mining

As we have mentioned that their and data properly updated at daily basis, so Nestle have provided centralized software which is names SNOW and this soft ware is totally centralized and every one have access only on concerned function and Sales admin department feed information regarding sales at daily basis. Nestle have huge server, which based in their head office which is controlling all activities. Every person like Branding department have access on their concerned information and they can take action regarding brands, and Sales monitoring department can take action according and also promotional department can plan activities accordingly. So we can say that data mining place is head office where they develop explore plan and strategies regarding Milk Pak.

Marketing intelligence System

Nestle Pakistan’s biggest marketing intelligences are their sales forces (Area Managers, and Territory Head) who are directly connected to their target market and who are observing all activities of their competitors and suggesting solution regarding these competitions. So, if we summarize, then we can say that their most effective Marketing intelligence system and force is their sales force.

Steps To Improve Marketing Intelligence System Train and motivate sales force. Nestle Pakistan management have a proper

training programs for their sales forces and special training sessions for their distributors and for their sales men because their distributors and their sales representatives are pure company’s representative.

Motivate channel members to share intelligence: Nestlé’s distributors are

highly motivated and especially when they observe any kind of activity in their area they inform to the company representative and he take action accordingly his or her power.

Network externally: accordingly definition of this heading company have

information regarding competitors activity, so Nestle properly alert about their competitors activities, now they are facing only one competition which is name as Olpers because their sales and marketing campaign is too much strong but Nestle representatives are properly alert and they adopt defensive strategy before launching of Olpers in any area.

Utilize customer advisory panel: Nestle have various types of customer advisory panels, like they sales representative in a specified area are getting proper feed back for their target customers and they are properly aware about their targets customers need and wants.

Purchase information: Nestle have proper purchase plan at the basis of their past history and accordingly their new action which they have adopt to increase their productivity.

Collect customer feedback online: As such they are not so much update regarding online feedback because a huge quantity of their customers are such customers who are illiterate or unaware about this technology. So, for feedback about product and campaign they are providing their postle address and their phone number.

Analyzing the Macroenvironment

Needs and trends

Nestle Milk Pak have created a need and then set a trend and mega-trend.

Needs

People need such milk which is durable for some time, so they present milk in packed form which customer can use with 3 months after processing and production.

Trends

We can consider them as a trend setter as before Milkpak there was very small concept to use packed milk, but every body prefers to use packed milk because it is totally germ free and durable.

Identifying the Major Forces

Nestle properly giving concentration on their Major forces, because they believe to deliver quality with reason able prices, so they are keep interest of all Major forces.

Demographic Environment

The demographic environment in Nestle Milkpak is given importance by the company.

Worldwide Population Growth

Population growth is a biggest reality, it is a problem but its also a major factory which play a role in business and sales growth, so due to population growth and with other factors now Milkpak have 15-25% through out Pakistan.

Educational Groups

Nestle Milkpak is now targeting almost all educational groups, but if we analyze the original ratio of MILK PAK user then we can find out, Milk Pak’s customers are such customers who are properly aware about health and quality product. House Hold Patterns

We can easily analyze that Milk Pak have separate range for their house hold customers in shape of 1500 ml pack for family use, and Milk Pak have four types of SKU of their products,

250 ml500 ml1000 ml1500 ml

We can analyze that they are following all types of house hold patterns and they are presenting their products accordingly their users.

Geographical Shifts in Population

This is also a biggest effect on sales, so in Pakistan after earthquake, their was a big geographically shift in population, so due to this coz their was great increase in sales especially in Kashmir area. If we compare 2005, 2006 and 2007 sales then we can analyze that there is big sales growth due to geographic population shift.

Other Major Macroenvironments The major micro environment of Nestle Milkpak counts a lot in their organization for the management of daily activities

Economic Environment

Marketing require purchasing power as well as people, the available purchasing power in an economy depends on current income prices saving, debit, and credit availability. According this definition Milk Pak presenting their brand accordingly their customers purchasing power and accordingly their usage.

Social Cultural Environment

Purchasing power is directed toward certain goods and services and away from others according to people’s testes and preferences. Society shapes the beliefs, values and norms that largely define these tests and preferences. Firstly, we can say that Milk Pak’s prices are accordingly customers purchasing power and taste which company presenting for their target marketing accordingly their customers, and their taste is much closer to nature and customers taste.

Natural Environment

The natural environment of Nestle MilkPak is really important for their success because there is competition is all around.

Shortage of Raw Material

Every year Milk Pak face problem shortage in milk collection due to hot weather, and this shortage remain for 3 to 4 months every year.

Increased Energy Costs

Under current scenario we can analyze that due to increase in energy producing material, that’s why all other Milk brand also changing their rates.

Changing Role of Governments

This point we can also count here, coz taxation and other policies some times effect the prices and other policies.

Technological Environment

Technological environment highly effecting product, so Nestle Milk Pak, using highly advanced technology for processing, packing etc, and currently they have start new plant in Khanawal for the sake to meet customer needs.

Political-Legal Environment

As it’s a multinational brand, so when ever any religious moment awake, they include the name of Nestle Milk Pak in their banned product lists, so such events effect it badly.

Increased business legislationsGrowth of special interest groups

RESEARCH PROCESS

Step 1: Defining the Problem, the Decision Alternatives and Research Objectives

Researches are mostly conducted by companies, when they are facing problems, so Milk Pak also facing various problems in their daily matters, like quality, prices, and competition etc. so for this matter they have various departments.

Step 2: Develop the Research Plan

Nestle Milk Pak also develop several research plan, like in different times, they got complaint regarding quality, error in packing etc. then they send a special team in specified area who research out the basic routs why this thing happened and they also define that where is problem.

Data Sources

Regarding sales figure and also regarding target market their sales representative are big source to collect information regarding desired objective.

Research Approaches

Nestle Milk Pak also using all below mentioned research methods on different times and situation.

Observational Research Focus Groups Research Survey Research Behavioral Data Experimental Research Questionnaires Qualitative measures

Shadowing Behavior mapping Consumer journey Camera journals Extreme user interviews Storytelling Unfocused Groups

Mechanical Devices

Nestle also using this method for their research data and also for their new customers to whom they are plan to target. In this whole process, their one separate department named as Sales Promotion involved, they have proper complete work force for a specified region who involve such activities which directly correlated to their customers. In nestle

department they have another department Named as Consumer Services, who arrange different Mohala “street” shows and presenting Milk Pak and creating awareness about the usage of this brand.

Sampling Plan

Nestle Milk Pak follow their sampling plan as follow:

Sampling unitAll SKUs of Nestle Milk Pak

Sample sizeAccordingly their selected areas

Sampling procedureNestle Milk Pak using different methods such as

Free test drive Functions Mohala shows Town Storming Sponsorships etc.

Contact Methods

Nestle Milk Pak also using all below mentioned method to get proper feed back from their customers, and also proper way to know that what kind of innovation their target market want, easily they can evaluate and adopt it.

Mail Questionnaires Telephone Interviews Personal Interviews Online Interviews

Step 3: Collect Information

Regarding sales figure Nestle milk Pak have Sales Admin department in all regions which have updated city wise, SKUs wise, brand wise all information at daily basis. Secondly Nestle Milk Pak have second biggest source to collect information from their customer are their Sales forces which directly connected with their markets and monitoring daily sales moments and their competitors activities. If sales management need any kind of information then regarding market then they specified their required information and they sales department provide them concerned information.

Step 4: Analyze the Information

All levels of sales management involve in information analysis, they pick their required information from flow of data transferring and take decision accordingly.

Step 5: Present the Findings

Sales control and Admin department find out results from sales data and then present RIG (Real Internal Growth) brand wise, volume wise, value wise, area wise, etc. and pass this information from top to bottom for proper action

Step 6: Make the Decision

Top management National Sales Manager, Sales and Marketing Manager, and Brand Manager make the decision at the basis of findings and then develop the polices Zone wise, and Zone Sales Manager develop policies under guidelines of top management for his regions and then Regional Sales Manager took action accordingly and covey the message to Area Managers and to their Territory manager. Finally who implement all policies and decision on market and find out the results and then convey back the results as per previous mentioned circle.

Overcoming Barriers to Use of Marketing Research

If we study theory then we can find out 5 barriers in use of data are as follow:

1. A narrow conception of the research 2. Uneven caliber of researchers 3. Poor framing of the problems4. Late and occasionally erroneous findings5. Personality and presentation differences

But in case of nestle mostly top management and brand managers are taking decision without proper market research, just they think that company need these kinds of modification and they develop these changes. That’s why some times their strategies not supporting and targets because they have not used properly market research.

Measuring Marketing Productivity

If we measure marketing productivity then we can find out that Milk Pak Marketing productivity is best in the market because Olpers now spending a huge amount on media, which is higher then all brand media cost. Now days Haleeb facing problem of short expiry, they are loosing their customers

CREATING CONSUMER

VALUE SATISFACTION &

LOYALTY

Customers Loyalty

Nestle Milkpak is well aware of the importance of customers Loyalty that Increasing competition is forcing businesses to pay much more attention to satisfying customers in the modern world where competition is all around. Nestle Milkpak give utmost priority to their customer’s satisfaction as it is the deeply held commitment to re-buy or re-patronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior.

Nestle Milkpak’s Plan for Building Customer Loyalty

Nestle Milkpak had a comprehensive plan to maintain their customers loyalty

1. Nestle Milkpak introduce such Products that are highly differentiated from those of their competitors like Haleeb, Everyday, Olpers and others.

2. Nestle Milkpak introduces Higher-end products where price is not the primary buying factors.

3. Nestle Milkpak’s Products are available for the customers with a high service components.

4. Also Nestle Milkpak introduces multiple products for the same customer like there are other are other milk products like Nestle Cream, Nestle Yogurt and many other variety of Milk made products are available for their customers.

Nestle Milkpak Market to Their own Customers

Nestle Milkpak gives a lot of thought to their marketing programs aimed at current customers is one aspect of building customer loyalty. They are well aware of their main customers and at the same time they are also aware of the fact that to remain in the hearts of their customers there is really a need of some attractive and reality based Advertisement that is specially designed according to the taste of their customers. Nestle Milkpak really want to keeping touch with their each customer but it is not possible as there are millions of customers therefore to remember their customers on different important occasions special ads are designed to wish their customers and also discounts are offered on some occasions like Ramadan.

Nestle Milkpak Listen to the Complaints of their Customers

Usually it happen that when customers aren't happy with any of the business they usually won't complain to that company - instead, they'll probably complain to just about everyone else they know - and take their business to your competition next time. That's why Nestle Milkpak making follow-up calls also goes for mailing satisfaction questionnaires, and also questioners are filled by the customers after the sale is made. Customers are also given an opportunity to contact the through internet with any kind of

complaining regarding Nestle Milkpak. They find that if they promptly follow up and resolve a customer's complaint, the customer might be even more likely to do business than the average customer who didn't have a complaint.

Nestle Milkpak Reach out to their Customers

Nestle Milkpak is of view that Contact . . . contact . . . contact with current customers is a good way to build their loyalty. The more the customer sees someone from your firm, the more likely you'll get the next order. That is why Nestle Milkpak remembers their customers in different occasions.

Nestle Milkpak many times send newsletter to their customers-tell them about the great things that are happening at their firm and include some useful information for them regarding the quality and purity of the product. Many times seminars are conducted by Nestle Milkpak and the customers are invited to free seminars because Nestle Milkpak had a concept that the more their customers know about them, the more they see them as someone out to help them, the more they know about their accomplishments-the more loyal a customer they will be towards Nestle Milkpak.

Nestle Milkpak’s Loyal Workforces

To be successful in building customer loyalty Nestle Milkpak have a loyal workforce. Nestle Milkpak retain sales people, technical support, and customer-service employees who interact with customers. Nestle Milkpak give a lot of attention to retaining sales people. Especially sales people are given very much importance as they are considered as ambassadors of the company as they are going to represent Nestle Milkpak among millions of customers. They are given much importance so they could feel themselves as a part of the company.

Nestle Milkpak Attract and Retain their Customers

For the purpose of Customers Loyalty Nestle Milkpak attract and retain their Customers along with their employees. They don’t want to loose their customers in any case that is why they respond to their customers in a very positive manner. To retain their customers Nestle Milkpak brings different variety of products with the passage of time according to their taste and their requirements. Also they bring different offers for their customers along with their products which are very well known for the quality provided by Nestle Milkpak. To attract their customers they provide best quality products with reasonable prices. Through research conducted by Nestle Milkpak they came to know that majority of their customers is quality conscious rather than price that is why their main target is providing best quality products.

Customer Value Proposition

From the customer's point of view, any company exists only to create value for them, to provide them with results. Nestle Milkpak deliver a particular customer value proposition to a definable market in order to exist. Nestle Milkpak is well aware of all the happenings and the activities held by their competitors

In the rapidly changing economy, the focus of Nestle Milkpak is on the way in which the nature of value is changing, involving new ways to price goods, innovation and emotion. Nestle Milkpak identify these hidden values and think more accurately about their worth before accepting the price proposed. The implications are profound. Nestle Milkpak think in terms of offers, which involve merging products and services to exploit their knowledge to give customers a value-added experience, not just "selling them stuff". Nestle Milkpak provide their customers with all the possible cluster of benefits that they promises to deliver.

Customers for Life

The main purpose of Nestle Milkpak is to create and keep a customer. The two most important words that Nestle Milkpak keeps in mind in developing a successful customer base are Positioning and Differentiation

Differentiation refers to their ability to separate themselves and their products and services from that of their competitors. And it is the key of Nestle Milkpak’s in building and maintaining a competitive advantage. This is the advantage that they have over their competitors in the same marketplace – the unique and special benefits that no one else can give the customer rather than Nestle Milkpak.

Customer Satisfaction

Customer Satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation

In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy for Nestle Milkpak. Nestle Milkpak preferred to have more and more satisfied customers for this particular purpose they provide qulity products and services and are always busy in bringing innovations to their products. Its their priority to have more satisfied customers . usually it is thought that customer satisfaction is gained by offering lower prices but same is not the case with Nestle Milkpak. Nestle milkpak’s prices are neither too high nor too low they have modrete prices for their customers. Nestle Milkpak have competive edge of providing variety of quality and pure products to gain customer satisfaction.

Customer Expectations

A customer expectation is the experience formed by the customers based on past buying experience. Nestle Milkpak’s customers have pleasant past buying experience with Nestle. Nestle Milkpak’s marketers play a vital role in building pleasurable customer satisfaction. Usually it is thought that with higher expectations there are going to have disappointed customers but same is not the case with Nestle Milkpak, they raise their expectations and also at the same time they are delivering attractive performances to perfectly match the raise in the expectations.

Measuring Customers Satisfaction

Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service to product/service. The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviors such as return and recommend rate. The level of satisfaction can also vary depending on other options the customer may have any other products against which the customer can compare the organization’s productsNestle Milkpak is increasingly interested in retaining existing customers while targeting non-customer. Nestle Milkpak is also engaged in measuring customer satisfaction provides that is an indication of how succesful Nestle Milkpak is at providing the products at the market place.

For measuring Customers Satisfaction Nestle Milkpak use different impresive techniques to know what is happening in real manner. Nestle Milkpak use the following techniques to measure customer satisfaction.

Periodic Surveys

Nestle Milkpak preferred to conduct periodic survery to inow the level of their customers satisfaction. During periodic surveys questions are asked regarding the product. Many times questions regarding the value added to the products are also asked. Nestle distrubute questionier among the customers regarding Nestle Milkpak. Through eveluation Nestle Milkpak came to know that what is the rate of satisfaction of their customer. many times changes are brought to the products by keeping in view the demands of the customers.

Monitor Competitive Performance

Nestle Milkpak is well aware of the position of their competitors. Nestle Milkpak try to know about all the facts related to their competitors and on the basis of those informations they try to develop their competitive edge over their competitors. Sometimes Nestle Milkpak make changes in their prices with the price changes by the competitors. The company knows all about their competitors that’s why Nestle Milkpak

ia ahead of all their competitors and grap major shares in the market as compare to their competitors like Haleeb, olpers etc.

Quality of Nestle Milkpak

Nestle Milkpak provides best quality Products to their customers. There is complete check and balance on the hyganic conditions of the products. Nestle Milkpak contains all the necessary ingredients which are helpful for health. Nestle Milkpak contain a proper quantity of calciumn in it. The product is well known among its customers for the best quality they provide. In the beginning the pack of Nestle Milkpak was having 3 layers but noe two more layers have been added to protect it from the effects of sunlight and many other climatic changes. The amount of useful ingredients also have been included in the product.

Partnership for Better Quality, Health and Economy

Pasteurized milk is still a rarity in Pakistan. The comparatively high levels of bacteria, which can be found in unpasteurized milk, can be a health hazard for both young and old.

Since its establishment in Pakistan, Nestlé Milkpak has been involved in many community partnership initiatives; one of the most successful is the inception of milk collection centers, which have revolutionized the collection and storage of milk in the Punjab region of Pakistan. This partnership initiative has benefited local farmers, who get a better and more constant price for their milk, and Nestlé, which gets better quality milk.

The Punjab covers an area of 72,000 km2 and produces 75% of Pakistan's milk. Before the milk collection initiative, Punjabi farmers sold their milk to dodhis, middlemen who were in a position to control prices. This meant that farmers had no guaranteed income - the do this were under no obligation to take the milk the farmers produced and did not pay a consistent price for the milk. Dependent on seasonal variations in milk production, a single source for sale of their milk and irregular income, farmers always remained at a disadvantage. This system brought down quality, which was good neither for local people nor for large buyers of milk such as Nestlé Milkpak. The milk would often be contaminated by bacteria in transit to the distant urban areas - the absence of cooling tanks, prolonged collection times and the addition of lumps of ice from unsafe water, all contributed to the problem

The partnership has focused not only on increased milk production, but also livestock development to improve milk quality and quantity. Improved food safety was also an objective, as pasteurized milk is still a rarity in Pakistan. The comparatively high levels of bacteria that can be found in un pasteurized milk can be a health hazard for both young and old. All parties are thus keen to ensure high quality milk is available and the milk collection initiative was set up to does just that.

Milk Collection in Punjab

Nestlé thus devised a new system of milk collection in conjunction with local farmers and communities. In the Punjab region, over 2,400 new Village Milk Centers (VMCs) have been established. Farmers bring milk to the centers each morning and evening, where the VMC agent records their contribution, no matter how much or how little that may be. The milk is also tested for its fat and bacteria content.

The partnership has focused not only on increased milk production, but also livestock development to improve milk quality and quantity. Improved food safety was also an objective, as pasteurized milk is still a rarity in Pakistan.

From this point the milk is taken by lorry to one of the 500 'Chillers' that have been installed in the region, where the milk is cooled to maintain the quality and prevent bacteria growth. If it has taken longer than three hours for the milk to arrive at the chillers, then it is not accepted for reasons of hygiene quality. From the chillers a fleet of 70 tankers take the milk to the Nestlé Milkpak factories where it is used in food production

All these processes have helped to ensure that milk quality in Pakistan has greatly increased in the three years that the VMCs have been in operation. The average fat content in milk has risen from 4.7% to 6%, solid non-fats have increased by 2% to 8% and the total plate count of bacteria has fallen significantly.

Partnership with Farmers

The cornerstone of Nestlé Milkpak's program is the strategic partnership with farmers. The farmers are paid a set rate for their milk, which gives them greater security and consistency of income. The prices are set every season so that the farmers know how much they will receive depending on the quality and volume of the milk they bring to the centers. In the Punjab, over 120,000 farmers contribute 165 million liters a year to the VMCs and benefit from a regular weekly income. Nestlé Milkpak paid over 2 billion rupees in 1999 for milk they have received form the VMCs, which has meant a better return for farmers in the rural economy as well as a guaranteed supply of good quality milk for Nestlé.

The milk collection initiative has also led to other benefits for the farmers of the Punjab. Farmers did not have access to modern animal husbandry, fodder cultivation and dairy practices. This restricted the development of the rural economy. Resulting from the partnership between Nestlé and farmers, new progressive dairy farming techniques have led to an increased efficiency in farming and helped to improve the welfare of livestock.

Nestlé Milkpak helped to establish an Extension Service, staffed by qualified veterinary surgeons. They have provided free consultation on diagnosis and treatment, undertaken vaccination at cost and held lectures on measures to enhance the quality and quantity of milk. Last year 130,000 animals were vaccinated to prevent the spread of HS disease

during the rainy season, 80,000 were treated for routine diseases and a de-worming campaign treated 85,000 livestock.

The Extension Service has played a key role in encouraging farmers to establish co-operative programs to improve the breeding quality of livestock. So far, the results, using artificial insemination and other methods, have been successful and more farmers are joining the scheme.

Animal nutrition had been another area suffering from under-development. Now, farmers are given advice on how to use cotton seed cake and molasses as feeding supplements. Independently it would be difficult for farmers to buy these products; however Nestlé Milkpak imports high yield seeds, cuttings of fodder crops and bulk quantities of sugar and sell them to farmers at cost. The Extension Service is helping to educate and encourage farmers to utilize waste corn to make silage.

Conclusion

Thus the partnership between Nestlé and the dairy farmers in the Punjab region has produced positive results as hoped. There has been a significant improvement in both quality and quantity of milk, generating growth of the economy and therefore raising the standard of living of Pakistani dairy farmers.

Service Quality of Nestle Milkpak

Along with quality product Nestle Milkpak also provide Quality Service to its Customers. The availability of the product in every part of the country became possible only due to the Quality of service provided by Nestle Milkpak. They also tale care and make sure that the product is preserved in a perfect way for the customers. Nestle milkpak also listen to the complaints of the customers regarding the service provided by them. For this purpose their customers can contact them directly or even through their distribution channels. The customers are also provided with the facility to contact them online if they are there with any sort of complaints regarding the service provided by them.

Total Quality Management in Nestle Milkpak

TQM is an Organization-wide approach to continuously improving the quality of all the organization’s processes, products, and services. Nestle Milkpak spend millions of its income on continuously improvement of the organization’s processes, products, and services. For this purpose Nestle milkpak conduct monthly meetings on which they discuss all most all important issues regarding the product also strategies are developed regarding continuous improvements. Nestle Milkpak bring varieties and variations in its products to retain their customers in a better way than their competitors. Especially in case of any complaints from the customers quick actions are taken to over come the weak Point and top make their customers happy. Suggestions from customers regarding improvements in the product are always appreciated by the company.

Maximizing Customers Lifetime Value

Nestle Milkpak also give its best output in maximizing its customers lifetime value. For this purpose although Nestle is not going to fire its customers with low profit but at the same time they prefer to concentrate more towards its more profitable customers. The customers of middle, upper middle and upper class are more profitable for Nestle Milkpak but at the same time Nestle is not going to ignore lower middle class. They have a concept that these customers of lower middle can move up to middle class and can become profitable customers for them.

Customer Profitability

Nestle have many profitable customers that over time yields a revenue stream. Through Customer Profitability Analysis Nestle Milkpak came to know that its most profitable customers are different companies who prefer quality milk for their employees, hotel ling and restaurant industry, people middle and high income are the profitable customers of Nestle Milkpak. They concentrate seriously on retaining their profitable customers. Nestle Milkpak gives their best output to change their customers into loyal customers by providing them exactly what they need and also according to their need.

ANALYZING

CONSUMER MARKET

Consumer Behavior

Consumers do not make their decisions in a vacuum. Their purchases are highly influenced by cultural social, personal, and psychological factors. For the most part, they are “non controllable” by the marketer but must be taken in to account that is why Nestle Milkpak examine the influence of each factor on a buyer’s behavior. Nestle Milkpak is very well aware of the importance of consumer behavior towards buying the products. They know that Consumer behaviour is the study of how people buy, what they buy, when they buy and why they buy. It is a subcategory of marketing that blends elements from psychology, sociology, sociopsychology, anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics, psychographics, and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups and society in general.

Factors that Effect Consumer Behavior

A consumer’s buying behaviour of the customers of Nestle Milkpak is influenced by Cultural, Social, and Personal factors:

Cultural Factors

Cultural factors have a significant impact on customer behavior. Culture is the most basic cause of a person’s wants and behavior. Growing up, children learn basic values, perception and wants from the family and other important groups.

Nestle Milkpak always keep in mind the importance of cultural factors. Even the packing, taste, Ingredients and availability of the product is finalized by keeping the cultural factors in view. Even before launching any new product a research is always conducted to know about the cultural factors regarding the product.

Apart from cultural factors Nestle Milkpak also divides its customers on the basis of Subculture factors:

Subculture

People with different nationalities also prefer to use Nestle Milkpak because of its best quality. Majority of Pakistani national mostly prefer to use milkpak because it’s more expedient to use and also full of useful ingredients and also because of the ideal quality provided to them. Customers who are not Pakistani nationality holders but who live in Pakistan use nestle because nestle is serving its customers globally.

Nestle also perfectly suits its customers belonging to different religions. Nestle Milkpak brings variations in its products by keeping in view the different religious perspectives of its customers in view. Nestle Milkpak also divides its customers on geographical basis to possibly come to know about their requirements and needs and to best serve them.

Not only the products but also the advertisement and marketing of nestle Milkpak is designed by keeping in view the cultural and also the subculture factors in view. The ads of the product are changed from country to country.

Social Classes

Nestle Milkpak is aware of the importance of social class in the success of the product. Social class is an open group of individuals who have similar social rank. Social class influences many aspects of human life. Virtually all human societies exhibit social stratification. Stratification sometimes takes the form of a caste system where the members of different caste are reared for certain roles and cannot change their caste membership .More frequently; stratification takes the form of social classes.

The main part of the income of Nestle Milkpak is generated from the social classes which include Upper Lowers class which are not impressive source of income for Nestle Milkpak but they are never ignored by Nestle Milkpak. A 10 ml pack is specially designed by keeping in view the requirements of upper lower class in view. The Working Class is also engendering some sort of income for Nestle Milkpak. Although the working class it is not very extraordinary but it again never ignored by Nestle Milkpak. The upper lowers and the working class are price conscious that is why nestle provide them 10 ml pack with affordable price. The Middle class also importance as the people of this level participate actively in the sales of Nestle Milkpak. The upper middle class contribute towards the success of Nestle Milkpak and this category is never ignored or treated ordinarily by Nestle Milkpak. The upper uppers class customers are thought to be Golden Customers as they generate most of the revenue for Nestle Milkpak. as the customers of upper uppers class are quality and status conscious they never compromise on quality and for that they even pay more and wants to have perfect quality that is why the prefer to have Nestle Milkpak. The ½ and 1 kilo Nestle Milkpak is specially designed by keeping in view nature is requirements of the customer of middle and upper middle class.

Personal Factors

A consumer’s behavior is also influenced by social factors, such as the consumer’s reference group, family, and social roles and statuses that is reason why Nestle Milkpak never ignore these factors.

Reference Groups

A person’s reference groups are those groups that have a direct (face to face) or indirect influence on the person’s attitudes or behavior. Nestle Milkpak has great image on the minds of their customers the is why the Membership group that ahs direct influence on

the others have positive perception about Nestle Milkpak and that is the reason that it is quite successful among its customers. Then the primary groups where the people belong to each other and interact with each other also contribute positively towards Nestle Milkpak. During daily interactions the positive points of Nestle Milkpak that are shared by Primary groups with each other also enhance and improve the image as well as the profitability of Nestle Milkpak.

Family

Members of the buyer’s family can exercise a strong influence on the buyer’s behavior. The families with extremely Islamic religious concept have not that much positive concept about those companies which are headed over by foreign non Islamic countries and as Nestle Milkpak is headed by Foreign Multinational Company that is why it is not positively appreciated by them. Also the off springs of such religious leaders give birth to such concepts about foreign multinational companies like Nestle. On the other hand the members of modern Families with less rigid Islamic concepts have positive remarks about the Multinational Companies like Nestle.

Husband and wife play a vital role in deciding about the products. In case of expensive products and services, husband and wives engage in more joint decision making. Nestle conducted Market survey through they come to know that which member normally has the greater influence in the purchase of a particular products or services. Either the husband or the wife, or they have equal influence. Through research they come to known that in case of kitchen expenses the wives play major role and through the same survey they come to know that most of the house wives who have control over the kitchen expenses have positive remarks about the products and services provided by Nestle.

Personal Factors

Most of the times the buyers ‘decisions are influenced by personal factors.

Age

Nestle Milkpak is used by its customers from all age of groups because of the fact that Nestle Milkpak contain all the beneficial ingredients that are perfect for good health.

Life Cycle Stage

The consumptions of Nestle Milkpak are also shaped by the family life cycle the number of people in home at a time. To capture the attention of all the families members nestle always bring variation in its products like Nestle Milkpak is available which is thought to be perfect for tea making purpose and also for drinking purpose, Nestle Everyday is available in liquid as well as on the form of dry milk, Milo is available delicious taste designed specially by keeping the kids needs in mind and many other products are presented by Nestle to provide all the family members what ever they need.

Occupation and Economic Circumstances

Occupations and economic circumstances also influence the consumption pattern of nestle Milkpak. The blue collar workers prefer to buy the milk which is openly distributed by the milkman and which is thought to be cheap. The blue collar workers have to survive in and also to look after their family in a condition where the things of even daily use are expensive all around that is why they prefer to have milk in cheap price from the milkman rather than MilkPak.

Product selection is also effected by the economic circumstances. Customers who are economically stable and who have strong purchasing power are thought to be the favored most priceless customers of Nestle Milkpak.

The marketers of Nestle Milkpak try to identify the occupational groups that have above – average interest in their product and services and also it is their utmost priority to have more and more economically stable customers and on the other hand the customers with middle income are never overlooked by Nestle Milkpak.

Personality and self concept

Personality and self concept are a set of distinguishing psychological traits. Customer many times wants to buy such products whose personalities match their own. Most of the customers of Nestle Milkpak, who are status conscious, quality conscious, want to be dominant over others and economically stable, are not going to have milk from milkman or they are not going to compromise over the price or quality that is the reason why they always like better to have Nestle Milkpak.

Lifestyles and Values

As the world has become Global village developments are at the peak at the same time people prefer to have products which are easily available, less time consuming and obviously which contain all the desired qualities. In case of milk now days the working and the cooperate class don’t have that much time to have openly distributed milk from milkman and to boil that milk and also with boiling the milk the useful ingredients are going to be smashed that is why they prefer to have Nestle Milkpak which provides expediency in usage and also provides ideal quality.

Stages of the Consumer Buying Process

There are six stages in consumer buying process but Actual purchasing is only one stage of the process. Not all decision processes lead to a purchase. The six stages are:

Problem Recognition (awareness of need)

Nestle Milkpak creates awareness about the need to have safe, pure and quality milk through many ways. Many times the role to create awareness is played with the help of advertisement. Nestle before launching Nestle Milkpak realized the customers of nestle who are using their quality products feel the need to have also the quality milk with useful ingredients along with the perfect quality. After recognizing the problem Nestle Milkpak was brought to the market among the customers.

Information Search

When Nestle Milkpak was launched although Nestle was having positive perception in the minds of the customers but even then for their satisfaction they come to know about the product through different sources like the advertisement, public sources and also through viral marketing where other customers were also attracted by the words of mouth of the loyal customers of Nestle. Many customers after coming to know about the perfect performance of Nestle and the launch of their milkpak they used it on experimental basis and found it flawlessly according to their taste because before launching Nestle Milkpak a complete research was done and it was find out that there is really a need also to provide the customers with variation in the products in the form of Nestle Milkpak.

Evaluation of Alternatives

By keeping in view the requirements of the customers Nestle Milkpak was provided with different attributes and benefits to attract and retain the customers. Nestle provides its customers with what ever the best they can provide them with and as a result they remained successful a positive belief and attitude in the minds of the customers about the customers.

Evaluation of Alternatives

Purchase decision

Nestle is well aware that milk is used on daily basis and also the customers purchased it on daily basis. To fulfill the requirement of purchase on daily basis Nestle Milkpak is produced on large quantity and through contracts with devoted distributors it is made available in all most all important cities of the countries from where the customer can easily purchase it.

Post-Purchase Evaluation

After launching Nestle Milkpak, Nestle got positive response from the customers. The customers were found perfectly satisfied with the product. Few months after the launch of Nestle Milkpak a survey was conducted by Nestle to test out the response of the

customers regarding Nestle Milkpak. The result was astounding/majority of the customers were found satisfied with the purity and quality of the product. It was because of the positive perception of the Nestle among its customers as Nestle is serving its customers globally from past many years.

ANALYSING

BUSINESS MARKET

Organizational Buying in Nestle Milkpak

Nestle felt the need to purchase packets for the packing of the its milk for this purpose they made an agreement with Tetra Pak. Now Tetra Pak is providing Nestle Milkpak with the packs for the packing of their milk. Nestle Milkpak purchase material for the packing of its Milkpak in bulk from Tetra Pak. On the other hand they also collect milk from different farmers and after the production of the product Nestle Milkpak is made available for the customers in the market through different distributors of Nestle Milkpak.

Business Market of Nestle Milkpak

The business market of Nestle Milkpak is serving its customers with the best output. Some of the characteristics of Nestle Milkpak are as following:

Fewer but Larger Buyers

Nestle Milkpak have fewer larger buyers who make purchases from Nestle Milkpak in bulk and make that available for the customers of Nestle Milkpak. Nestle Milkpak had 26 Distribution channels in three different Zones of Pakistan.

Professional Purchasing

Nestle Milkpak made professional purchasing through professionally trained purchasing agents. Those professionally trained purchasing agents are supposed to follow Nestlé’s purchasing policies, constrains and requirements.

Inelastic Demand

The utmost priority of Nestle Milkpak to make its product available for its customer and also to build brand loyal customer relationship. The demand for nestle Milkpak is inelastic in a way that the purchasing of nestle Milkpak is not going to be influenced by price changes because of the fact that most of the customers of nestle Milkpak are quality conscious rather then price conscious.

Buying Situations in Nestle Milkpak

In many decisions in making purchases for the packing of this product the main buying situation that nestle Milkpak adopts is modified re-buy where specifications are brought to the product.

Modified Re-buy

Nestle Milkpak get their milk from different farms, they don’t compromise on the quality of the product, and sometimes it need modification and in case of any bad quality they inform their supplier to maintain the quality of the product, and some time they switch the suppliers due to non-reliable supply of the product..

System Selling

Nestle Milk have fewer distributors in the Pakistan they sell their product tot hem in mass amount.

Gold standard customers

Customers of Nestle Milkpak just expect the great quality, assistance, reliable delivery of the product. They just want to follow the standard. Nestle Milkpak have taken suitable steps to made a impression on the mind of their customers that Nestle Milkpak is providing best milk in the market.

Supply Chain Management Orientation

Supply chain of Nestle Milkpak has more strategic and value adding operations. They have built the long term relationships with their suppliers in terms of good quality and reliability.

Stages in the Buying Process

Problem Recognition

Nestle Milkpak always try to provide better quality product to their customers. Incase of finding any problem in the manufacturing or supplying of the product, they take suitable to steps to remove that problem, Nestle Milkpak get milk from the farms which are away from the city, so there are sometimes problem in the delivery process, because they have to keep the milk fresh and effective.

General Need Description and Product Specification

All departments of Nestle Milkpak coordinate to get out of the problem, they try to keep the reliability and durability of the product.

Suppliers Search

In finding any problem in the product and delivery of the product, Nestle milkpak go for the other supplier and convenient delivery process, they contact with the different companies who are providing better delivery process, and a suppliers who provide the product with better quality.

Problem Solicitation

After that process Nestle Milkpak look for the qualified suppliers to submit their proposals, proposal covers the every thing which must be included in process, then Nestle Milkpak ask for the some selected suppliers and distributors to give brief presentations on the what the can provide to us.

Supplier Selection

After getting the proposals Nestle Milkpak go for the of best of best of the suppliers and distributors among all, they study from all the dimensions to select the best supplier.

Order-Routine Specification

When the best supplier and distributor is selected, the Nestle Milkpak find out that in how much quantity they need the supply, and how conveniently it will reach to the company, and how much time it will take.

Performance Review

The most important thing is the performance of the supplier and distributor, that how they are maintaining their level of production and delivery, to maintain the process without any hurdles. Nestle Milkpak uses the evaluation system to analyze the performance of the producer and supplier.

MARKET SEGMENTS

AND TARGETS

Local MarketingThe local marketing of Nestle Milkpak varies from city to city. Their plan their marketing and promotional activities are designed according to the area and their marketing strategies for a particular area are also formed by analyzing the market of that area.

Customization

Customization does not directly implements on Nestle Milkpak. As Milkpak is the first milk Product of Nestle and customization is done by bringing other products like Nesvita, Nido, Everyday etc. Nestle Milkpak is a customized product.

Segmenting Consumer Market

Nestle has segmented its market in different ways

Geographical Segmentation

The marketing activities of Nestle Milkpak are based on the areas. Geographically nestle has divided the region Pakistan into three zones.

1. North Zone2. Central Zone 3. South Zone

These zones are further divided into different regions then these regions are sub divided into different areas. The sub division of area is called a territory an then these territories are further divided into cities.

Demographic SegmentationDemographically nestle Milkpak has divided the target market into different groups. These are as follows:

Age and Life Cycle Stage

Milk is the basic necessity of all human beings indifferent of being at any stage in life. Nestle Milkpak has focused on the age and life stage of people by bringing other products like Nido for children, Nesvita for health conscious people etc.

Income

The income level is also very important in case of Nestle Milkpak because there is also open milk available in the market. The people with sufficient income are quality and health conscious and these are the people are the actual customers of Nestle Milkpak.

Generation

The new generation is well aware and well informed about the good and bad aspects of a product then the previous people. The new generation prefers Milkpak due to its valuable features like quality, durability, and packaging.

Social classes

The society of Pakistan has been divided into different social classes and this distribution is actually based on the income level of people. Nestle milk pack is targeting the middle, upper middle and lower high class of the society.

Behavioral Segmentation

Nestle MilkPak has also segmented its target market on the basis of human behavior. It is as follows:

Decision Poles

Nestle MilkPak mainly focuses on the house wives because they are the decision makers who decide what to us in the kitchen in order to ensure the health of the whole family. This is also shown in their advertisements.

Behavioral Variables

Occasions

Human behavior and consumption patterns change on different occasions like the milk consumption increases on different festivals e.g. Eid-ul-Fiter. For this different marketing campaigns are designed by the company and also different strategies are developed like discounts etc in order to make the customers feel that the company is concerned about its customers.

Benefits

Nestle Milkpak offers different types of benefits to its target customers. These are: Quality Durability Packaging Availability Reasonable Price

User status

User status also plays a role in his behavior. The high class user prefers using the family pack while the low class user goes for the small pack.

Usage Rate

Nestle Milkpak also ranks different areas on the basis of usage rate. These high and low sale areas also tell about the consumption patterns and behavior of the population of those areas towards Nestle Milkpak.

Buyer readiness stage

Nestle is continuously playing a very important role in creating awareness about its product Nestle Milkpak. This creation of awareness helps a company to get a better and positive response from the target customers. Nestle has a department named a Consumer Relation Department and the job of this department is to create awareness between the people. This is the reason that the market share of Nestle Milkpak is increasing day by day and now it has become the market leader.

Loyalty Status

Major portion of Nestle Milkpak’s customers are those who are hard core loyal. These are the people who never compromise on quality. That is why Milkpak is the strongest milk brand available in the market. The competitors are trying very hard but they have only 13 to 15 percent of the total market share.

Attitude

Nestle Milkpak has to face two types of attitudes positive and negative. The people with the positive attitude prefer Nestle Milkpak due to its different features and these are also quality conscious.

Sequential Segmentation

Sequential segmentation in case of Nestle Milkpak is as follows

First Time Prospects

Nestle Milkpak’s market share is growing day by day and this means that there are a lot of first time prospects who want quality at a reasonable price.

Novices

Many people are shifting on packed milk from open milk. These are the people who have risen in their social status and majority of these prefer Nestle.

Sophisticates

Nestle Milkpak’s current consumers of are the sophisticates. Nestle has established strong relationship with these customers. Nestle gets feedback and responds positively to these consumers. That is the reason that Nestle is the market leader in milk industry.

Price oriented customers

Nestle also focuses on its customers who are price conscious. In order to target these customers Nestle MilkPak is Available in different packs in the market.

Solution Oriented Customers

These are the actual customers of nestle Milkpak who never compromise on quality and Nestle provides them with the best quality as compared to other milk brands available in the market.

Effective Segmentation criteria

Nestle Milkpak has a very effective criteria for the market segments. Nestle Milkpak has a very effective and accurate market measurement that to what extent they should produce their product. The company measures the market potential to sell is product and Nestle Milkpak is produced accordingly. Nestle Milkpak has the largest and effective distribution network as compared to its competitors all over Pakistan and Nestle Milkpak is available all over Pakistan. Nestle Milkpak differs from its competitor brands available in the market due to its best quality and that is also the competitive edge of Nestle Milkpak the marketing campaigns on nestle Milkpak are also designed according to the areas and these campaigns differ from area to area. These marketing campaigns are actionable and the consumer responses are at a very high rate.

Evaluating and Selecting Market Segments

Nestle Milkpak has evaluated the market of Pakistan and segmentation has been done accordingly. Nestle Milkpak has specialized in producing the best quality hygienic milk. Quality is a competitive edge of Nestle Milkpak over its other competitors. Nestle has its own laboratories in which the milk quality is tested. Nestle has specialized staff for keeping a check on the quality. Nestle Milkpak has a very strong and largest distribution network which enables to provide its customers with the best milk. The distribution network is present all over Pakistan and that is how they are having full market coverage. Nestle is also having a full market coverage by having other milk products e.g. Nesvita, Nido etc.

Differentiated Marketing Costs

The prices of all the milk brands available in the market are same. These prices are regulated and implemented by Pakistan Dairy Association. The company can maximize its profit only by minimizing its different costs

Product modification costThere are two types of product modification costs.

Horizontal product modification cost contains the cost which company bears in making Nestle Milkpak available in the market in different packs e.g.

CREATING

BRAND EQUITY

Brand Name of Nestle Milkpak

Nestle had a brand name among its customers. Nestle use Birds nest with the parents caring the small ones which gives out a perception that like in a manner the parent birds care about their young ones in the same manner Nestle is also concern about their customers and therefore it is Nestle Milkpak’s utmost priority to provide their customers with quality milk full of useful ingredients. While thinking of Nestle Milkpak the perception developed in the minds of the customers is the pure quality milk and that what Nestle Milkpak is trying to convey them.

Role of the Brand Name of Nestle Milkpak

Legally Protected

The brand name of Nestle Milkpak is legally protected as it is registered trademark therefore no others companies can copy them. Through registered trademark Nestle Milkpak’s manufacturing and packing processes are safe.

Organizing Inventory and Account Records

The brand name of Nestle Milkpak is also very helpful in organizing account and inventory records as they are really necessary to be accurate as they are the main part of the financial reports of Nestle which finally shows the financial position of the company.

Level of Quality

The Brand name of Nestle had a very positive perception in the minds of their customers that is why just thinking of Nestle Milkpak the concept arise in the minds of the customers that it is a quality milk. Nestle Milkpak is well known among its customers for the quality provided by them.

Builds Customers Loyalty

The brand name of Nestle Milkpak plays its role in converting its customers into Loyal Customers. Due to the positive image for providing quality service Nestle Milkpak has more loyal customers who are committed to buy only Nestle Milkpak although there are many other brands in the market.

Create Barriers for the new entrants

The Brand name of Nestle Milkpak creates barriers for the new entrants into the market who are serving privileged class. Although new entrants are coming into the market but

they are not that much strengthened to compete with the brand name of Nestle and they are not able to serve majority of the customers in a way Nestle is serving.

Brand Equity

For Nestle Milkpak its Brand Equity is a set of its assets linked to its brand name and symbol that adds to the value provided by Nestle Milkpak and the service to its customers. Nestle Milkpak wants their customers to feel really pleasant about their brand name that is why they never compromise on the quality of the product as well as the quality of their services. Nestle Milkpak wants to provide their customers with what ever they expects regarding the product and also they want to have their customers to have positive and attractive experience while using Nestle Milkpak.

The Customer Based Brand Equity of Nestle Milkpak is very strong as they respond positively towards the marketing of the Nestle Milkpak. Nestle try its best to market Nestle Milkpak in a more attractive way so that their customers remember them forever. Nestle Milkpak creates Positive brand equity by effective promotion and consistently meeting and many times exceeding their customers thoughts and expectations and also the profitability of Nestle Milkpak is high because of the greater brand equity.

Components of Nestle Milkpak’s Brand Equity

There are four main pillars of Nestle Milkpak’s brand equity which play vital role in its success.

Differentiation

Nestle Milkpak differentiated by its customers from the other brands on the basis of the quality provided and the purity of the products. Their customers are quite satisfied that for what ever they are paying is according to their requirement and taste.

Relevance

Nestle Milkpak has great significance among its customers. The customers are well aware of the importance of Nestle Milkpak in their as Nestle Milkpak is full of taste and calcium and that is why their customers always prefer to have Nestle Milkpak.

Esteem Nestle has super esteem among its customers and also Nestle is respected by its customers as they always found Nestle as caring towards them and same is the reason that all most all Nestle products are appreciated by its customers.

Knowledge

Customers have appreciable knowledge about Nestle Milkpak they are well aware of the attributes of the product. The customers have complete knowledge about the product.

Brand Elements of Nestle Milkpak

When nestle Milkpak deal with brand elements they talk about:

Symbol and CharacterAlso the Nestle Milkpak’s two kids with their father showing strong muscles exist for quite some times now. It is the symbol of the beneficial ingredients that Nestle Milkpak contains.

Packing

The packing of Nestle Milkpak is in a thick cover with almost four layers to protect the milk from climatic changes. The coloring of the packing of Nestle Milkpak is light green and white.

Slogan

The slogan used by Nestle Milkpak is of Urdu wordings as of is the National Language of Pakistan. The slogan is “Jaan Banao”

Criteria for choosing Brand Elements

There are five criteria of Nestle Milkpak to judge whether or not the above mentioned are good brand elements

Memorable

The Memorable of Nestle Milkpak is high thanks to the name, graphic profile, father with his kids showing brand loyalty and the light green and yellow box. Also a little survey was conducted among 62 people. Question was asked concerning brand recall and recognition. This way the memorable of Nestle Milkpak could be defined as high.

Meaningful

The name of Nestle Milkpak is rather Meaningful because as the name represents that it is the quality product of Nestle so Nestle Milkpak is a good term to identify the product with.

Transferability

Also the transferability of this product is high. This became clear after Nestlé did some brand extensions. Nowadays there are breakfast’s cereals, syrups for pancakes, dry milk all under the name of nestle.

Adaptability

The logo is very flexible over time. They are used for several years already and today it does not look old-fashioned at all. So in this manner the adaptability of Nestle Milkpak is good as well.

Predictability

Nestle Milkpak is a protected, registered trademark. Predictability is the fifth criteria. We can conclude that all criteria’s are fulfilled and that the brand elements of Nestle Milkpak are well chosen and also well designed.

Brand Portfolio Nestle

Nestlé has a rather extensive brand portfolio. We divided the more than 130 products into 9 groups and several groups are divided into subcategories, as you can see in the scheme of the brand portfolio.

Diary products Breakfast Cereals Ice Cream Chocolate confectionary Prepared foods Beverages Pet care Nutrition Foodservices

Nestlé is associated with L’Oreal, has a joint venture with Gel derma and Laboratories Innerve. They also work together with Alcom, a pharmaceutical company.

Brand Strategy

It’s very clear that Nestlé is using a corporate endorsement strategy. They even have a long tradition in endorsing their brands. Nestlé has gathered several products under a global umbrella. This is saving costs for Nestlé in campaigning, but it is also reassuring for the client when they know that one product they like is related to a product they don’t know yet, but which they want to try out. They know the good quality the product represents. Recently Nestlé started with the line extensions. For example, along with Nestle Milkpak they also come up with Nestle Everyday, Nido and many others. To optimize the brand architecture Nestle would also use endorsement as well because this strategy seems to

work for Nestlé. It is easier to cross national boundaries and to introduce products in countries where only a few products of Nestlé are known. It has an integrative power. The product line of Nestlé is not too diverse. All their products are related to food, so it is not likely to end in a dilution of image. Negative associations are the down side of this strategy, but we think that the effect will be minimal since Nestlé always makes product campaigns and no corporate campaigns.

Leverage of Secondary Association

The brand can be linked to some other aspects like:

the company the country of origin the channel of distribution other brands an end-user an event

The consumer expects that the associations will also characterize the brand so that characteristics are transferred.

In its marketing Nestlé uses the company name, and so other brands. The company name Nestlé is both used on Nestle Milkpak and on all its other products. This way costumer associates the quality of other products of Nestlé to the quality of Nestle Milkpak.

Also the two kids with their father are used as an endorser. They are their spokesperson. When costumers see their attractive pose showing strong muscles, they immediately think of Nestlé.

Marketing Programs

The way the brand is integrated into the supporting marketing mix depends on product design pricing strategies channel strategies, which includes distribution and communication

The logo and the light green and white box are the most important element for the product design. The two children with their parents are the spokesperson of Nestle Milkpak Nestle tries to get functional and symbolic benefits, such as recognition. As a symbol they use the kids with their father, this also gives them benefits.

Nestlé sets the price based on value based pricing, which means that it uses several standards to define the price like product design, product costs, and delivery. Its prices hardly change. But once in a while they grant discounts.

Nestlé uses a push strategy. They push their message through the distribution channels. The customer does not have to ask for information; there is an intensive distribution through television, magazines, stores, Internet.

When it comes to the communication channels, Nestlé uses many of them. There are the commercials on television and in magazines. They are directed to children. CD-ROMs with games and movies are also used. The website must be considered as a relation builder advertisement. It is filled with games and other things to entertain for both children and their parents.

We see their marketing communication approach as an integrated one. The print advertising always shows a kid playing, skating…, which refers to the energy it needs. During the TV-commercials, Quickie helps some kids out by letting them drink Nestle Milkpak so that they are able to have strong muscles and gain energy

Possible Outcomes for Nestle Milkpak

There are several possible benefits for Nestlé by using all these strategies. Some examples are:

The benefits that are related to the growth of the product and the profitability. For example they create loyalty with their customers and are less venerable to competitive marketing actions because once they get the loyalty of the public; it is rather easy to keep it.

More public and higher selling rates make it easier to respond to pricing and market differences.

A strong brand also makes it possible to do some line extension. Nestle Milkpak introduced Nestle Everyday, Nido and many other products.

Measuring Brand Equity

To measure Brand Equity is an important factor for Nestle Milkpak. They fully concentrate on measuring Brand Equity to really come to know the interest of the customers about the product.

Brand Audit

In determining the strengths and weaknesses of the brand of Nestle Milkpak brand, or to cover all the bases when establishing a new brand, the brand audit checklist of Nestle Milkpak prove of value. In Brand Audit of Nestle Milkpak all most all aspects regarding Nestle Milkpak are kept in mind and all features related to Nestle Milkpak are very well designed that is also the main source of attraction of the product towards the customers. The brand audits of Nestle Milkpak almost require keeping in notice that what products and services are currently being offered to their precious customers. By keeping their

customers perception in view Nestle Milkpak Nestle always tries to uncover the true meaning of the brand name and the product of Nestle Milkpak to their customers.

The brand audit of Nestle Milkpak consist of two steps which are first is the Brand Inventory which provide Nestle with a current, comprehensive profile that how Nestle Milkpak is sold. Marketed and branded. The marketing of Nestle Milkpak is well and perfectly designed by keeping all factors in view in both visual and verbal form and that is the reason that Words of Mouth play a vital role in the success of the product. Secondly brand Exploratory which is conducting research activities for Nestle Milkpak to know about the perception of the customers who are their customers and also to find out about the perception of those who are not their customers to know about that what are their requirements and how that can be fulfilled to attract them towards Nestle Milkpak. Brand Exploratory also tries to find out that what the impact of marketing on their customers is. After evaluating the research necessary steps are taken to overcome the weak points.

Brand Tracking

Brand tracking is also apart of the measuring brand equity of nestle MilkPak. Marketers of Nestle MilkPak are provided with current information’s regarding the product that how the product is performing and how it is competing with rivals in the market and also they are told about that how they can enhance the brand equity.

The provided information’s regarding Nestle Milkpak is quite helpful for the managers of nestle milkpak to make day to day decisions effectively and also only because of the positive impact of the provided information’s Nestle Milkpak is performing beyond the expectations of the customers.

Brand Valuation

Nestle has base their growth on acquiring and building rich brand portfolio and for the same purpose they have acquired Rowntree (U.K), Carnation ( U.S), Stouffer ( U.S), Buitoni-Perugina ( Italy) and Perrier (France) making its self world’s largest food company.

In Pakistan after the counter attack by Olpers to attract their farmers who were providing them with the milk Nestle Millpak had decided to set up their own farm house to continue serving their customers with quality milkpak and for the same purpose they are about to import thirty thousand Australians cows from Australia on initial stage.

Managing Brand Equity of Nestle MilkpakThe effective Brand Equity Managing is the main source of its success among its customers. For managing the Brand Equity the marketing of Nestle Milkpak play a vital role. The managing of Nestle Milkpak consists of Brand Reinforcement, Brand

Brand Reinforcement

Nestle Milkpak is well managed by the devoted staff of Nestle and same is the reason of its achievements. It is carefully observed by Nestle Milkpak that what does the Brand of Nestle Milkpak represents towards its customers. Brand reinforcement of Nestle Milkpak also bring innovations to the product with the passage of time to maintain its positive image towards its customers and for this purpose the marketing programs of nestle Milkpak play a vital role.

Brand Revitalization

The changes in the Consumers, emergence of new competitors like Olpers and the counter attract by the rivals were thought to be the potentially effect the fortune of the s of the brand of Nestle Milkpak but Nestle Milkpak had very well managed all the situations. Nestle Milkpak always brought innovations to the Product with the change in the taste of the consumers, also the have very well managed he counter attacks by the main rivals lime Olpers and Haleeb and also Nestle Milkpak had very well managed the emergence of the new competitors.

Brand Crisis

Nestle Milkpak had never been in any serious Brand Crisis. Whenever crisis had been arising Nestle Milkpak had very well managed that. Some difficult situations were created by Olpers by attracting the main farmers by offering them free fertilizers as Olpers is the product of Engro Chemicals but nestle had very well managed that situation and had decided to set up their own farm house.

Devising a Brand Strategy of Nestle Milkpak

Nestle Milkpak is managing its Brand Strategy in a very well manner as it is the main force behind its success.

Brand Extension

An established and impressive brand of Nestle is used to introduce other hundreds of brands. The new introduced products of Nestle Milkpak are quite successful among its customers because of the impressive image of nestle among its customers. The brand extension of Nestle consists of more than 130 products into 9 groups and several groups are divided into subcategories, as you can see in the scheme of the brand portfolio.

Diary products Breakfast Cereals Ice Cream Chocolate confectionary Prepared foods Beverages

Pet care Nutrition Foodservices

Parent Brand

Nestle is the Parent brand which give birth to Brand Extension under which hundreds of products have been introduced in the market.

Family Brand

The family brand of Nestle is consisting of hundreds of different products in different categories. There is almost all kind of food products in the family brand of Nestle.

Line Extension

The brand name of Nestle is always used to develop and introduce new product among the customers and also the brand name of Nestle is used to attract and serve the target customers.

Category Extension

The Brand name of Nestle entered in all categories of Nestle products and further introduced many other products in each category of nestle. Nestle is further extending its all categories and always brought variations in the products.

Brand Mix

Nestlé’s brand mix is quite inspiring towards its customers as they are provided with almost all kinds of food items under the particular brand of Nestle.

Branded Variants

Nestlé’s products of different category are made available thorough different distribution Channels and retailers.

Licensed Products

All the products of Nestle are licensed products to avoid the danger of copying the product by the competitors.

CRAFTING &

BRAND POSITIONING

Positioning of Nestle Milkpak

The designing of the offering of Nestle Milkpak and the image of Nestle Milkpak is very striking among its customers as Nestle Milkpak is providing its customers with quality milk. Nestle Milkpa is concuous and careful about that how potential buyers see the product. positioning of Nestle Milkpak has come to mean the process by which marketers try to create an image or identity about Nestle Milkpak in the minds of their target market for product, brand, and organization of Nestle. It is the relative competitive comparison'their product occupies in a given market as perceived by the target market. Nestle Milkpak has great image among its customers regarding its competitors. Nestle Milkpak always use its possible best resources to creat clear and impressive image in the minds of its customers for their purpose they have never compromised on the quality of the product.

Positioning Concept of Nestle Milkpak

More generally there are two types of Nestle Milkpak’s positioning concepts

Functional Positions

In functional positioning the problems regarding Nestle Milkpak are always quickly solved like in a manner the problem regarding the supply of milkpak was quickly solvewd by establishing their own farm house. Benefits are also provided under Funtional Positioning by providing the customers with the health benefits by providing them with useful ingredients. Also discount benefits are given to the customers on special occasions like Eid and Ramadan.

Symbolic Positions

Under Symbolic Enhancement the self image of Nestle Milkpak is enhanced among its customers and also among its competitors. The main purpose of the product are also very effectively fullfilled.

Points of Parity ( POPS) of Nestle Milkpak

There are many associations of Nestle Milkapk which are not very unique as Milk is also provided by many othe campanies in the market and almost same as the rivals are offering. Also the pakaging is almost same as the competitors are offering.

Point of Differentiation ( PODS) of Nestle Milkpak

Although there are some associations of Nestle Milkpak which are not very unique towards its customer but at the same time thee are many points of Difference which make it siccessfulamong its customers.

Relevence

The target customers of Nestle Milkapk had always found it Relevent and important. As Nestle convey the main message that they are going to provide their customers with quality products it is very imporatnt towards its customers.

Distinctivness

The targe customers of Nestle Milkpak had always found it Distinctive and superior as the product is designed according to their taste and need. Taget customers had found Nestle Milkpak superior as Nestle is always bringing innovations to the products according to the requirements of the customers.

Deliveribility Criteria of Nestle Milkpak

The Deliveribility criteria of Nestle Milkpak is also very important for Nestle Milkpa to position its self in a very well manner in the minds of its target customers.

Feasibility

The product design and marketing offerings of Nestle Milkpak are very supportive towards the prods to create Points of Difference. The marketing and designing strategy of Nestle Milkpak are also changed with the changes in the product to convince the target customers regarding the changes

Sustainability

The sustaimability of Nestle Milkpak is also strong because of the great internal commitment and also because of the very well managing of availible resources. The impressive performance of the products is helpful is maintaining sustaimnability and ofcourse also in maintaining PODS.

Differentiation Strategies of Nestle MilkPak

The differentiation Strategies of Nestle MilkPak are also important because of the fact that Netle Milkpak want to creat PODS among its competitorsand customers

Product Differentiation

Nestle Milkpak want to create Product Differentiation on the basis of its features, design, performance, conformance, reliability and quality. Nestle Milkpak make product differentiation by providing its customers with quality product. Nestle is well known among its customers because of the quality provided by them. Nestle had never been found while compromising on Quality of the products and that is the reason of its

popularity among its target customers. Although milk is also provide by other rivals of Nestle Milkpak but the Quality that Nestle Milkpak is providing is its competitive edge over other competitors

Personnel Differentiation

Nestle also had competitive edge over its competitors by having very ell trained people. Even training is provided to the farmers about the introduction of latest technology to increase milk production who are providing Nestle Milkpak with milkpak. The staffs of Nestlé Milkpak are very well mannered, cooperative and devoted.

Channel Differentiation

Nestle Milkpak’s well known among its target customers and competitors by well designed distribution channel’ Coverage, Expertise and Perfomance. The different channels of Nestle Milkpak mike it availible in a proper quantity and also they storege of the product in diferent places are save from the enviromental changes.

Image Differentiation

The image created by Nestle MilkPak in the minds of its Target Customer is very dashing. Nestle had very positive image in the minds of its target customers due to which all products of Nestle are appreciated by ita target customers. The omage in the minds of the target customers of Nestle Milkpak is that it isb a safe and quality product.

Product Life Cycle of Nestle Milkpak

The product life cycle of nestle milkpak is quite interesting as Nestle Milkpak reached its growth and maturity stage.

Introduction Stage

In the introduction stage it was not the main aim of Nestle Milkpak to earn maximum profit like other companies. In the initial stage it was the utmost priority of Nestle Milkpak to create awareness about the products among its customers. The profit in the introduction stage of Nestle Milkpak was not impressive because lots were spended in the introduction of Nestle Milkpak to the market and sales of the product was although satisfactory but was not very high.

Growth Stage

Nestle Milkpak reached its growth stage in a very limited time as the product was well introduced in the product and aslo Nestle Milkpak was appreciated in a very well manner because of the past impressive image of nestle among its customers. At the growth stage Nestle Milkpak gained fantastic profit and established its self in proper manner among its customers.

Maturity Stage

Now a days Nestle Milkpak is in its Maturity stage after surviving in introduction and growth stages and Nestle Milkpak is going to spent long time in this phase. In the maturity stage Nestle Milkpak is having strong competition with its competitors and also Nestle Milkpak is using variety of media to compete with its competitors and to survive in the modren world of competition.

DEALING WITH

COMPETITION

Competitive Forces

Threat of Intense Segment Rivalry

“A segment is unattractive if it already contain numerous strong, or aggressive competitors” as we have analyzed that Nestle Milk Pak is not keep these kind of segmentation.

Threat of New Entrants

These days Milk Pak facing huge competition and threat from two new brand Olper and Good Milk, Good milk is as such not too much strong competitor but Opler’s strategy and market entrance is so strong that why nestle little bit facing problem due to new entrance.

Threat of Substitute Products

Milk Pak facing this threat recently newly entrance of substitute product named as Olpers.

Threat of Suppliers Growing Bargaining Power

Increase in price of former supporting product suppliers now providing or demanding milk at higher rates due this Milk Pak and other brands also working to increase their prices and this is big threat to loose loyal customers.

Identifying Competitors

Following are the competitors of Nestle Olpers Haleeb Good Milk Nurpur Nirala Sabeen

And lot of other local brands are competing their customers.

Industry Concept of Competition

Pure monopoly: Not Implementing Oligopoly: Not Implementing Monopolistic competition: Not Implementing  Pure competition: We can say that now Milk Pak facing pure competition

Market Concept of Competition

“Competitors are companies that satisfy the same customers need”A list of competitors as mentions above

Analyzing Competitors

Strategies

Almost all milk companies have same strategies to target their customers, but now Olpers is targeting their target market very aggressively, the are utilizing their Human force to create strong competition and to approach their customer through every way, like free sampling, free tasting, etc.

Objectives

Milk Pak have strategy to beat the competitors and to make new customers then retention of these customers for long term.

Strengths and weaknesses

Milk Pak have following strengths quality, strong brand recognition, strong distribution system and in weakness we considered that they are over estimating their self and not spending trade offers as their competitors are doing

Selecting Competitors

Milk Pak just considering Olpers as competitor because Haleeb has swept from market as it was a great competitor in past, but as now they are planning for future fight, may be in future Haleeb again be a strong competitor.

Competitive Strategies for Market Leaders

Milk Pak now a market leader because it is keeping major sales share from other packed milk, as a market leader Milk Pak trying not to provide any gape to their competitor.

Expanding the Total Market

Due to combine efforts of competitors and Milk Pak now a big number of new user they have introduced other then their existing market. So due to combine efforts Milk user market is increasing day by day because customer are becoming health conscious.

Defending Market Share

As Olpers and other brand adopted very strong and aggressive approach regarding market share, but still Milk Pak have existed share of market and also 33% growth in this year.

Premium Performance

Presenting high quality and fresh stock to all over the country and proper follow up of complaints if in any part of country, any body is facing problem.

Extensive and Efficient Dealership System

One of most strong character of Milk Pak’s market share is their strong dealership system, which is playing strong role in availability of stock.

Full-Line Strategy

Milk Pak providing all customers facility to avail their products with 4 SKU (small kind of Unit).

Good Financing

Nestle Milk Pak have a strong financing and company back which is ready to finance up for all kid of competition. Nestle plan to 100 billion companies in 2014 so we can imagine their aim to grow.

Other Competitive Strategies

Market-challenger Strategies

“Many market challengers have gained ground or even overtaken the leader”There was a time when Haleeb was market leader and Milk Pak follower but due its strong strategy milk swept the Haleeb from market and Milk Pak is market leader.

Choosing a general attack strategy

Almost every strategy can be implemented on different situations.  

Frontal Attack

Nestle Milk Pak purely attacking under this strategy to their competitors because Milk Pak continuously match and observing opponent product, advertising, price and distribution.

Flank Attack

Some times Milk Pak following it

Encirclement Attack

We can say that some times nestle follow this

Guerrilla Warfare Not as such directly implemented to Milk Pak  

Choosing a Specific Attack Strategy ( error in heading check it agian)All-most all kind of strategies are implementing in different situation

Price discount Lower price goods Value-priced goods and services Prestige goods Product proliferation Product innovation Improved services Distribution innovation Manufacturing-cost reduction Intensive advertising promotion

SETTING BRAND

STRATEGY

Product Characteristics and classifications“A product is anything that can be offered to a market to satisfy want or needs”According to this theory Nestle Milk Pak present such product which is accordingly needs and wants of their customers, durable product, good taste, easy to carry, in different sizes, prices according to competition, attractive packing etc.

Product levels: the customer value Hierarchy

Core Benefit

To full fill the Milk need source of calcium taste for sweets etc

Basic Product

Milk UHT

Core be

nifitCore benefit

Basic Product

Expected Product

Augmented Product

Potential Product

Expected Product

“A set of attributes and conditions buyers normally expect when they purchase this product”Milk Pak presenting their products accordingly customers expectation, customer expected such product which near to nature and pure taste, and customers can carry for long run as compare fresh milk.

Augmented Product

“Differentiations arises on the basis of product augmentation”under this heading customer’s expectation get exceed from the limit they demand some thing separate might be in rates, or might be in taste, might be in product line, so as per market demand people need such milk which high calcium and low fat, so Milk Pak introduced Nesvita (High calcium low fat)new brand in milk according to market demand and gape which create a great differentiation and a meet the extra expectation of Milk Pak customers.

Potential Product

“New ways to satisfy the customers to satisfy their customers through all ways”Milk Pak introduced Everyday for such people who like thick milk and specially for tea, it is competitor of Haleeb who was presenting think milk with the slogan of “Garah Jo Hay”

Product Classifications

Nestle Milk Pak classified under following basis,

Durability and Tangibility

Nondurable Goods

Milk Pak is non durable product and we are using this product in our daily routine, and we are purchasing it again and again.

Services

Providing products

Product Differentiation

Forms

Green and white color of Nestle Milkpak packing gives differentiation with other milk brands.

Features

Average creamed Milk

Performance quality

Milk pack is maintaining and following their quality standard, average creamed milk and still they presenting and covering market with their quality, and Nestle only and only presenting quality products and they are not compromising on quality.  

Durability

Milk Pak life time is 3 months from the time of production.

Reliability

Most reliable brand in current market

Style

Nestle Milk Pak targeting their customers through their brand and it is unique as compare to others brands, as Olpers presenting with red color which present full cream milk, and Haleeb presenting as a low creamed Milk with blue packing, so nestle presenting with great combination of green and white color packing, with is most emotion catching color scheme for our nation due to our flag color, so we can say that they are presenting national brand because they adapt pure brand according to our demand.

Products and Brand relationships

The Product Hierarchy

Need family: Milk pack is need family product.Product family: Milk pak can satisfy core needs with reasonable effectiveness as high quality product with pure taste, and durability. Product class: Have only one class in its brandsProduct line: Milk Pak have three product line

Neslte Milk Pack UHT Every Day UHT Nesvita (HCLF)

                        Item: Classified into 4 items on the basis of their prices and on the basis of their sizes

250 ml

500 ml 1000 ml 1500 ml

Product system and mixes

Product system

Milk Pak have one products system, which presenting UHT milk all over the country

Product Mixes

Milk product has several product mix. Nido Every day Cerelac Lactogen Nan Etc.

Product Line Analysis

Sales and Profit

Milk Pak is considering a supporting brand for Nestle Milk Pak, and 250 ml have big share in sales and profit

Core Product

UHT milk

Staples

1000 is a staples product of Milk Pak because it was launched again in 2006 and now its have a proper response.

Specialties

1500 ml Milk only limited sales and limited target market, and before some time it is was totally push product but now current era is in favor of this brand coz in large size there is no competitor for 1500 ml

Convenience items

Milk Pak 250 ml is most recognized brand of Milk Pak and it have huge part from Milk Pak sales.

DEVELOPING PRICE

STRATEGY & PROGRAMS

Prices of Nestle Milkpak

Nestle Milkpak tries its level best to fairly price its product. The prices of Nestle Milkpak are set after very well analyzing all important aspects.

Consumer Psychology and pricing by Nestle Milkpak

The psychology of the customers is kept in mind while pricing by Nestle Milkpak. Psychology of the customer play a vital role in peruses the customer towards the product.

Preference Prices

In preference pricing the target customers of Nestle Milkpak a consumer retain the price information in memory and use to interpret and evaluate whenever new prices are introduced by Nestle Milkpak but at the same time Nestle use the pricing objectives and bring prices that are easily adopted by the customers.

Price-Quality Interferences

Majority of the target customers agree with the prices of Nestle Milkpak as they use price s an indicator of Quality. The customers of Nestle Milkpak are satisfied with the prices as Nestle Milkpak provides them with the quality product also. Most of the target customers of Nestle Milkpak are found Quality conscious rather than price conscious.

Price Endings

The prices of Nestle Milkpak are always round off number instead of price cues as Nestle Milkpak believe in providing its customers with quality product rather then offering discounts or lowering prices. Although some discounts are offered by Nestle Milkpak being respectful towards special occasions like Eid and Ramadan.

Steps by Nestle Milkpak while setting Prices

While introducing Nestle Milkpak in the market all steps were analyzed by Nestle Milkpak in a proper manner.

Selecting the Price Objectives

Some of the more common pricing objectives of Nestle Milkpak are:

Maximize Long Term Profit

The objective of nestle Milkpak is to maximize long term profit to survive in the modern world of competition where Nestle Milkpak is grab by the competitors.

Maximize Short Term Profit

In such situation where Nestle Milkpak wants to maximize their long term profit at the same time Nestle Milkpak tries to maximize short term profit because of the fact that without maximizing the short term profit it is difficult to maximize the long term profit.

Increase Sales Volume

Nestle Milkpak also tries to increase its sales volume to very well mange the prices of the product.

Increase Market Share

With very well managing the prices Nestle also tries to mange and increase its market shares and as a result Nestle Milkpak remained quite successful in gaining most of the market shares.

Stabilize Market or Stabilize Market Price

The main objective of Nestle Milkpak to stabilize market price is to keep prices stable in market place and to compete on non pricing considerations.

Company Growth

Through offering well managed and well analyzed prices Nestle Milkpak’s company growth is always increasing and also appreciated by the target customers of Nestle Milkpak.

Maintain Price Leadership

With the very well analyzed prices Nestle Maintain its leadership regarding price.

Create Barriers for The New Entrants into the Market

The well managed and properly analyzed prices of Nestle Milkpak create barriers for the new entrants in to the market.

Match Competitors Prices

Nestle always compare its prices with its competitors because its not the objective of Nestle Milkpak to offer high prices beyond the prices offered by Nestle Milkpak.

Survival

Nestle Milkpak tries its level best to introduce such very well analyzed prices which could be successful in its survival in the current situation where competition is all around.

Avoid Government Investigation or Intervention

Nestle Milkpak avoids any kind of Government interference as Nestle is Multinational company and is offering acceptable prices by keeping all factors in mind.

Obtain and Maintain the Loyalty and Enthusiasm of Distributors and Other Sales PersonnelNestle Milkpak give equal importance to their distribution and sales personnel as they have a concept that they can play their vital role in creating and maintaining customers loyalty.

Enhance the image of the Company, Brand and ProductNestle Milkpak also enhance the image of the company, brand name of Nestle and the product itself.

To Perceive as Fair by Customers and Potential Customers

The target customers of Nestle Milkpak perceive the prices of Nestle Milkpak as fairly priced as compared to the quality provided to them.

Use the price to make the product visible Nestle Milkpak use the prices to make the product more visible among its target customers.

Get competitive advantage

Nestle Milkpak get competitive advantage over its competitors by introducing a very well analyzed prices of the Nestle Milkpak.

Determining Demand

There is an important relation between Price and the Demand relating the product that is why it is given importance by Nestle Milkpak.

Price Sensitivity

Majority of the target customers of Nestle Milkpak are not price conscious. They are found really conscious about the quality provided to them. The target customers of Nestle

Milkpak are more Quality Sensitive rather than Price Sensitive. Never any complaint is yet received regarding prices of Nestle Milkpak.

Estimating Demand Curves

Nestle Milkpak make all possible necessary steps to measure the demand curve of Nestle Milkpak using all possible Methods

Statistical Analysis

In the statistical Analysis all the collected data are analyzed for the purpose of summarizing the available data regarding Nestle Milkpak to make it more useable.

Price Experiments

As the target customers of Nestle Milkpak are not price conscious therefore Nestle Milkpak had never conducted Experimental Prices.

Surveys

Nestle Milkpak conducts surveys to know about ht opinions of the customers regarding Nestle Milkpak’s prices. Most of the times through surveys Nestle Milkpak come to know that their prices best suits the demand of their customers and also their customers are quality conscious rather than price.

Estimating Costs

The cost of Nestle Milkpak till the end step of its production is considered and then the price is given to the product

Variable costs

The costs of Nestle Milkpak available in different packing have variable. The prices of Nestle Milkpak vary with the packing of the product. Also the prices of Nestle Milkpak vary with the increase or decrease in the production cost or increase or decrease in the ingredients that are used. The demand by the farmers to increase the price of per litre MilkPak also influences the pricing of Nestle Milkpak.

Analyzing Competitors Costs, Prices and Offers

Nestle Milkpak also analyses the prices, costs and offers offered by their competitors before offering new prices. Many times different offers are introduced by the rivals of Nestle Milkpak to attract the customers but in that kind of situations Nestle Milkpak take initiatives and handle the situation with counter attack.

Selecting a Pricing Method

Nestle use Cost-plus pricing which is the simplest pricing method. Nestle calculates the cost of producing the product and adds on a percentage (profit) to that price to give the selling price. This method although simple has two flaws; it takes no account of demand and there is no way of determining if potential customers will purchase the product at the calculated price.

Price = Cost of Production + Margin of Profit.

Selecting the Final Price

Price is an often overlooked marketing strategy for Nestle Milkpak, as they tend to focus on promotions or advertising. Pricing strategies of Nestle Milkpak, however, can have a large impact on sales and (more importantly) profit therefore Nestle Milkpak kept in mind all the necessary aspects in mind before selecting final prices in the market. Nestle Milkpak always reserves some of the portion from the sales of the product to spend on the improvement and advertisement of the product. Company pricing policies are always considered with full concentration before finalizing the prices of Nestle Milkpak.

Price Adoption StrategiesThe price adoption strategies of Nestle Milkpak also vary with different situations.

Geographical PricingNestle Milkpak offer same prices in all geographical areas of Pakistan. Nestle Milkpak’s prices do not vary from area to area.

Discounts

Nestle Milkpak offer discounts only on the occasions of Eid and Ramadan etc.

Promotional Pricing

Some times Nestle prefer to offer promotional Prices but Nestle Milkpak offers promotional prices in very rare cases.

Promotional Pricing Tactics of Nestle Milkpak

Nestle MilkPak use only tactic of Special Pricing Tactics that are quite imposing among their target customers

Special Events Pricing

Nestle offer special Events Pricing especially during Ramadan and Eid etc.

Designing and Managing Value Networks and Channels

Marketing Channels of Nestle Milkpak

The marketing channels of Nestle Milkpak are very effective towards the enhancement of the product. The Marketing channel of Nestle Milkpak play very vital role in the development of Nestle Milkpak and attracting and retaining the customers of Nestle Milkpak.

Marketing Communication of Nestle Milkpak

The marketing Communication of Nestle Milkpak is successful in informing, persuading and reminding its customers. Through best and impressive Marketing Communication Nestle Milkpak attract customers and the same times also retain those customers in such a fantastic manner that Nestle Milkpak has many Loyal Customers.

Communication Platforms

The Communication Channels of Nestle Milkpak also play their vital role

Advertising

The advertisement of Nestle Milkpak is very eye catching. For advertisement purpose Nestle Milkpak use:

Print and broadcast ads Packaging inserts Brochures and booklets Posters Billboards Logos

Sales promotions

For the purpose of Sales Promotion Nestle Milkpak use different methods and sources. For sales promotion Nestle Milkpak prefers sampling.

Public RelationsNestle Milkpak also develop strong public relations. Nestle Milkpak prefer to build long term Public relations.

Seminars

Seminars are conducted by Nestle Milkpak to create awareness about the products.

Annual reports

Annual reports of the company are also published to tell their customers about the financial position of the company.

Charitable donations

Charitable donations are also a part of Public relations. Charities are given to different welfare organizations.

Publications

Different articles are also published regarding Nestle Milkpak. Different interesting publications has been published regarding the performance and quality of Nestle Milkpak

Steps in Developing Effective Communication

Different steps are involved in Developing Effective Communication

Identifying Target Customers

The main customers of Nestle Milkpak are the customers belonging to middle class and above middle class. The main aim of Nestle Milkpak is to serve its target customers with the best quality and other features because of the sincere serving Nestle Milkpak has many loyal customers. Nestle Milkpak don’t afford to loose any of the loyal customers.

Determine the Objectives

The main objectives of communication are very well explained by Nestle Milkpak. The main objectives of Nestle Milkpak are to very well communicate the image of the products among its target customers. The objectives of communications of Nestle Milkpak are very ell managed and that is why Nestle Milkpak has great positive image its customers. The main objectives of the communication of Nestle Milkpak are:

Attracting and Retaining Customers

The main objective of Nestle Milkpak is to attract and retain customers never they can think about loosing any of the loyal customers and for this purpose the message of the brand name of Nestle Milkpak is conveyed in a very proper manner.

Brand Awareness

Creating brand awareness is also the main objective of Nestle Milkpak and nestle Milkpak remained quite successful in creating awareness about the brand and as a result the customers of Nestle Milkpak are very well aware of the product and play their role through viral marketing.

Designing Communication

The communication of Nestle Milkpak is very well designed each and every aspect is kept in mind to communicate with the customers in a very well and attractive manner. The message of the brand Name of Nestle Milkpak is conveyed in a implausible way through the communication channels of Nestle Milkpak.

Selecting Channels

Perfect and effective way of distribution and communication are selected by Nestle Milkpak. Almost all effective channels of Nestle Milkpak are adopted by Nestle Milkpak to serve its customers in a proper way.

Establishing Budget

Handsome budge is provided by Nestle for the improvement and performance of its effective Communication. Nestle Milkpak never compromise on the enhancement of its Communication towards its customers. Every year striking budget of million of $ are spend on the communication purposes.

Factors in Setting Communication mix

The communication mix of Nestle Milkpak consists of almost all sources of communication. Also the sources of communication of Nestle Milkpak are very well represented also and also Nestle Milkpak has great image among its customers.

Type of Product Market

While setting the marketing type the type of the market is kept in mind by Nestle Milkpak. The type of the product market of Nestle Milkpak require special attention and the very well designed Marketing mix play its role in handling the type of the product of Nestle Milkpak.

Consumer Readiness to make Purchases

The readiness of consumer was kept in mind before setting the Communication Mix. The positive attitude of the customers towards purchasing the product can be called as the Successful attempt of Nestle Milkpak’s Communication Mix.

Stage in the Product Life Cycle

The stage of the product life cycle of Nestle Milkpak counts a lot in determining the Communication Mix. In the introduction stage of Nestle Milkpak it was required that the Communication Mix should play its role and in the same manner Nestle Milkpak’s Communication Mix played its role and as a result Nestle Milkpak reached its Growth and Maturity stage in a very limited time.