CURRENT MARKET SITUATION
•NESTLE Plain Yogurt was launched
on November 1, 2000 in the biggest
branded yogurt market – Lahore.
•Following this success, In 2011, it
went into product development
and offered a new product which
they called, YELLY.
•Yelly is a combination of nestle
yogurt with a layer of jelly.
However, it failed.
•Since the idea is appealing and
it did generate people’s interest,
we are re launching yelly with
•With an increasing awareness
on sensible eating and the
spread of the notion of ‘healthy
eating’, yelly is an attempt
towards a product providing
health with taste
•Nestlé’s market consists of kids at the mainstream
and people who are health conscious, at the same
time also are keen to satisfy their taste buds.
•Specific segments being targeted are kids, teenagers,
and adult complying the health factor trend, middle
and upper middle classes.
Strawberry yogurt with chunks of strawberry and
layer of jelly.
Pineapple yogurt with chunks of pineapple and a layers
Frozen yogurt with layer of crystallized jelly
Yelly having unique
features, do not face
fierce competition. The
only competitors that
come close are local
frozen yogurt shops
such as Tutti Fruiti.
The challenge that Yelly
faces is creating its
demand in the market.
CHANNELS AND LOGISTICS REVIEW
•Agha’s super market.
•EBCO, the forum
•MY SUPER STORE, park
•Naheed super market
•Imtiaz super store
Classification of Product: Yelly’s
is a convenience product. This
requires minimum or no planning
before the purchase.
Convenience products are
usually low priced.
Levels of Product: There are
three types of level which are
Core customer value, actual
product and augmented product.
1. Core Customer Value: the intangible benefit
Jelly with nutritional benefits of yogurt.
2. Actual Product: tangible and physical benefit
Colours: Red, Green, Yellow.
Frozen or Non-Frozen yogurt.
Fruit Chunks:1)Mango 2) Pineapple & 3)
Inner packing: Plastic Cup 36g/cup
Quality level: highest quality of fresh fruits chunks.
Brand: Good Food, Good Life.
3. Augmented Product: extra add on, value or
service one gets.
Individual Product Decision
Product Attributes: Developing a product involves defining the
benefits that it will offer
1.Quality – Quality consistency
2.Features – tools that differentiate product from competitors’
the jelly and frozen yogurt with fresh fruit chunks.
3.Style – Pleasing Aesthetics
4.Design – Aesthetics: contribute to product usefulness & looks
handy and transparent
Branding: nestle is
Labelling: Nestlé’s logo
will be embossed on cup
Pricing: Our pricing strategy is market-
penetration pricing. Setting a low price
for a Yelly’s in order to attract a large
number of buyers and a large market
Promotion Mix Strategies: Marketers can
choose from two basic promotion mix
strategies-push promotion or pull
promotion. For pull strategy, advertising.
For push, personal selling and sales
promotion & public relations.
Place: Our channel strategy is to use
selective distribution. In first year, we will
add channel partners. Also, special
payment terms for retailers.
•Swot analysis is conducted to evaluate the overall
Strengths, Weaknesses, Opportunities and Threats to the
•Strengths include the internal capabilities and resources
combined with positive situational factors that help the
company to achieve its objectives
•Weaknesses are internal limitation and negative
situational factors that hinder the company’s performance.
•Opportunities are the advantages that the company can
have due to positive factors or trends in the external
•Threats are the possible challenges that the company faces
due to negative external factors.
Societal marketing concept
•Societal marketing concept means that
company’s decisions should deliver the desired
satisfactions effectively and efficiently that
preserves or enhances the consumer’s and the
•The new Nestle yelly is in better quality and taste
and has a high nutritious value but reduced
•It is packaged in recyclable container i.e being
•Encouraging customer: For returning 3 used
containers of Yelly the customer gets one free
•Once the product is in Growth stage of PLC.
Company plans to introduce Giving back campaign
i.e providing Nestle dairy product (including Yelly)
to underprivileged kids. 5% of the proceeds of
every Yelly sold will fund the campaign.
March: pre sales promotion
April: Launching of product
May: aim for breakeven
June: Make profits, contests
July: Go to schools, get surveys
to improve product.
BUDGET AND CONTROLS
I HAVE MY PRODUCT, BUT HOW MUCH IS IT WORTH
Managers use budgets to project
profitability and plan for each
marketing program’s expenditures,
scheduling and operations.
Fixed cost = Rs 199,680
Variable cost = Rs 773,800
Sales = Rs 1,200,000
Selling price = RS 40
Sales/selling price = Rs 30,000 expected units.
Sales/estimated units = Rs 40 each packet of yelly.
Variable cost each packet = Variable cost/Estimated
units = Rs 26 variable cost each packet.
Sales - variable cost = margin per
unit = Rs 14 margin per unit
Break-even volume = Fixed
cost/Price – Variable cost =
199,680/40-26 = 14,263
results after the plan is
any problems or
and initiate corrective
• We will closely check the quality and customer
satisfaction. Through this we will be able to react quickly and
correct any problem that may occur.
• We would also monitor the response of competitors or
new technology and alter our marketing, pricing and
distribution strategies as needed.
• Warning signals that show deviation from the plans that
include monthly sales and monthly expenses will also be
• We will also evaluate the market response and develop
more variations to our product or target different segments as
the needs develop.