This document provides a marketing project report on Nestle conducted by two students, Farhan Jalil and Mujahid Iqbal. It includes an organizational history of Nestle, analysis using the BCG matrix and Boston matrix, segmentation of Nestle's products and markets, and a SWOT analysis. The report covers Nestle's portfolio, market share, growth rates of products, suggestions for improving products, geographic and demographic segmentation of customers, and strengths, weaknesses, opportunities and threats.

1. PRINCIPALS OF MARKETING PROJECT ON NESTLE
BY:FARHAN JALIL & MUJAHID IQBAL 1
Principals of Marketing
Project
On
Nestle
Prepared by
FarhanJalil B-18532 farhanjalil@live.com
Mujahid Iqbal B-18560 mujahidiqbal0199@gmail.com
Course: Marketing Management
Date: 11/6/2015
Instructor: Mr. Asghar Rana

2. PRINCIPALS OF MARKETING PROJECT ON NESTLE
BY:FARHAN JALIL & MUJAHID IQBAL 2
Organizational History:
Nestlé is a multinational packaged food company founded and headquartered in Switzerland. It
resulted from a merger in 1905 between the Anglo-Swiss Milk Company for milk products
established in 1866 and the Ferine Lactée Henri Nestlé Company set up in 1867.
The Company is engaged in manufacturing, processing and sale of food products in Pakistan.
The company offers milk, dairy, and chilled dairy products, including UHT milk, yogurt, raita,
ghee, and cream; beverages, such as coffee, juices, and instant drinks; and bottled water in
non-returnable and bulk bottles for home and office delivery. It also offers infant cereals;
prepared meals, such as noodles; breakfast cereals; and mints, chocolates, and confectionery
and culinary products.
The company, formerly known as Nestle Milkpak, Ltd., was founded in 1979 and is based in
Lahore, Pakistan. Nestle Pakistan Limited is a subsidiary of Nestle S.A. It operates in
Sheikhupura, Kabariwala, Islamabad and Karachi.
The BCG Growth share Matrix
Analyze its current business portfolio and decide which businesses should receive more or less
investment,
“And”
the same time deciding when products and businesses should no longer be retained. How to
prepare this model?
This categorizes the products into one of four different areas, based on:
Market share – does the product being sold have a low or high market share?
Market growth – are the numbers of potential customers in the market growing or not
The four categories can be described as follows
 Dogs / Shrinkers (Low Market Share / Low Market Growth)
Unsurprisingly, the term "dogs" refers to businesses or products that have low relative share in
unattractive, low-growth markets. Dogs may generate enough cash to break-even, but they are
rarely, if ever, worth investing in.
 Cash Cows / Bankers (High Market Share / Low Market Growth)
These are products with a high share of a slow growth market. Cash Cows generate more than
is
Invested in them. So keep them in your portfolio of products for the time being.
 Stars / Growers (High Market Share / High Market Growth)
These are areas where there is real opportunity as the market as a whole and your share of it
are
both increasing. These gains however will not be realized without further development and
investment.

3. PRINCIPALS OF MARKETING PROJECT ON NESTLE
BY:FARHAN JALIL & MUJAHID IQBAL 3
 Question Marks/Maybes/ProblemChildren (Low Market Share / High Market
Growth)
These are products with a low share of a high growth market. They consume resources and
generate little in return.
Categorized under Boston Matrix
Star Category




 Nectar Juices)
Our suggestion
On the base of our survey and statistic these products are widely used by peoples in Pakistan.
So
to increase market share. Nestle should decrease the price of these products.
Question Mark Category
? Everyday
? MilkPak Cream
Our Suggestion
There are some minor default in above mentioned products like there taste and expiry dates.
These products can become star product if these defaults be removed.
Cash Cow Category
 Nestle Yogurt
 Maggi
 KitKat
 Polo
Our Suggestion
These product can made star products of nestle if nestle add new flavors and do penetration
Instead of skimming.

4. PRINCIPALS OF MARKETING PROJECT ON NESTLE
BY:FARHAN JALIL & MUJAHID IQBAL 4
Dog Category




SWOT Analysis of Nestle, the popular food brand:
Based in Switzerland, Nestle is the world’s leading health, nutrition and wellness based
company. It is also the largest food company in terms of revenue. With 447 factories operating
in many countries around the world, the multinational company employs around 333,000
people, and produces a wide range of products, making it one of the most preferred food brands
today.
Since its formation, Nestle has made a number of corporate acquisitions and is also listed as
the top most profitable corporation in the world. So, keeping these points and impressive figures
in mind, let’s do a SWOT analysis of Nestle, to get a better perspective of the strengths,
weaknesses, opportunities and threats to this popular food brand.
Strengths
Let’s start with the first step to SWOT analysis of Nestle, which is determining the brand’s
strengths:
 The business holds the most extensive portfolio of brewery and food products in its sector.
With annual earnings of more than $1 billion dollars from its 29 operating brands, and with
8,000 products under the belt, it is way difficult for any corporate to compete against Nestle.
 Nestle has one of the most advanced research and design capabilities through which they
introduce new products every year giving the brand a huge advantage over its competitors.
 The multinational company is successfully operating in more than 100 countries and has an
unmatchable distribution channel around the world.

5. PRINCIPALS OF MARKETING PROJECT ON NESTLE
BY:FARHAN JALIL & MUJAHID IQBAL 5
 To maintain its leading position in the market, Nestle has not only been forming partnerships
with other leading companies, but is also acquiring several others, resulting in remarkable
growth.
 Nestle is a reputable brand and is well-known almost everywhere, as its products are used
by millions of people each day.
Weaknesses
The next step to SWOT analysis of Nestle is its weaknesses:
 Perhaps the biggest weakness is their inability to provide consistency in the quality of their
food products, as Nestle often has to call in many products due to poor supplies or
contamination, hurting the image of the company.
 Nestle has faced a lot of criticism on a variety of issues, such as the horsemeat scandal and
child labor, which it has not been able to avert.
Opportunities
Starting with the externals to SWOT analysis of Nestle, let’s take a look at the opportunities the
company has:
 The increasing demand for healthy food products has opened up an immense market for
companies. Nestle in response to the health trend tries to introduce healthier food products.
 Nestle is already engaged in partnerships with a number of major companies, such as
Coca-Cola, and several others, opening doors of opportunities for the company.

6. PRINCIPALS OF MARKETING PROJECT ON NESTLE
BY:FARHAN JALIL & MUJAHID IQBAL 6
Threats
And finally, the final part to completing SWOT analysis of Nestle is the threats:
 The brand’s irresponsibility to run thorough quality assurance on its products resulted in
providing contaminated food and other products on the market, which can hurt the
reputation of the company and lead to losses.
 Nestle is the leading supplier of chocolate and cocoa products. The increasing trend
towards healthy eating will result in major declines in demand.
 The demand for raw food is expected to increase as population and economy grows. As a
result, Nestle will have to face higher costs and tighter margins.
So, after properly going through this SWOT analysis, we have come to this conclusion that
Nestle, without a doubt is one of the most successful food brands out there. However, they can
maximize their potential by dealing with the criticisms that have become synonymous with the
brand itself.
Market Segmentation:
The marketing concept asks for understanding customers’ requirements and satisfying their
requirements and needs better than the others do. But many customers have different
requirements and it hardly chance to satisfy all customers by treating them same just like.
Market segmentation is the searching of part of the market that are not similar from other.
Segmentation provides the firm to good satisfy the needs of its major customers.
1. Clearer understanding of the requirements and needs of selected customer groups.
2. More effective positioning in this place.
3. Greater precision in selecting promotional Transportation vehicles and techniques.

7. PRINCIPALS OF MARKETING PROJECT ON NESTLE
BY:FARHAN JALIL & MUJAHID IQBAL 7
Bases for Segmentation:
Users markets can be divided on the basis of these customer characteristics.
1. Geographic
2. Demographic
3. Psychographic
4. Behavioral
Geographic Segmentation:
Geographic segmentation is done using the spatial location to segment the market. In
geographic segmentation there are different schemes for the different geographical units such
as states, regions, cities. Markets are mainly divided into the rural and urban areas. The
Geographical variables have been used to segment markets in following ways:
 Area: Nestle Slim Milk limits itself to semi urban and urban India as that is their major
consumer base
 City: Class-Aand Class-B cities i.e. metro politician cities
 Region: Distribution is constant across urban areas
Demographic Segmentation:
In demographic segmentation, the market is divided into groups on the basis of variables such
as age, gender, income, occupation etc. These demographic variables are so popular with
marketers so that they are often associated with the consumer’s needs and wants.
Segmentation variables are easily measurable. Here are the demographic variables have been
used to segment markets. Nestle Slim Milk categorizes its target on the following criteria.
 Age
20 to 40 years – they account for the major share of the customer base as they are young urban
working professionals with limited time and a desire to lead a healthy lifestyle.
Middle age and elderly –The ready-to-use tetra pack content of healthy milk is very convenient
for the elderly although frankly, this isn’t the target market Nestle aims to conquer.
 Gender:Nestle Slim Milk is a gender neutral drink positioned for anyone who wishes to
be healthy.

8. PRINCIPALS OF MARKETING PROJECT ON NESTLE
BY:FARHAN JALIL & MUJAHID IQBAL 8
 Income: Nestle is associated with a certain luxury with their brand name and hence
caters to a segment that is ‘well off’ in terms of income e.g. IT Professionals in India
 Occupation: Students, working professionals, sports enthusiasts, athletes, health
enthusiasts
Psychographic Segmentation:
Psychographic segmentation buyers are divided on following ways:
 Lifestyle: Business class, working class executives, students
 Personality: hardworking, health conscious.
 Occasions:
 Benefits:Quality, health
 User status: regular user
 Usage rate: regular
 Loyalty status: regular Loyal
 Readiness stage: intending to buy
 Attitude toward product: enthusiastic, grateful
Socioeconomic Classification:
The people belong to the high job profile with efficient communication knowledge can use it. The
purchase potential of this product is limited up to the B1, B2, A1 and A2.
TARGETING
In geographic segment they target cities with a rampant IT culture.
In demographic segment their main target is young working professionals (20 to 40 years).
In psychographic segmentation they targeted a2, b1 and b2 socio-economic classes.
In behavioral segmentation it was found that they were targeting the first time users and also
their regular users. They target grocers, departmental stores and hyper markets.

9. PRINCIPALS OF MARKETING PROJECT ON NESTLE
BY:FARHAN JALIL & MUJAHID IQBAL 9
POSITIONING
Positioning
Point Of Difference Higher price (Rs.80) Lower price (Rs.45)
Point Of Parity
Category POP- Both are calorie free milk
Competitive POP- Amul is cheaper and a trusted brand in India
with a large history.
Nestle is a luxury good and available in selected outlets
Differentiated
: Nestle also choose the differentiated marketing. He provides different product for many
segments based on different ages, occupation, season and climate of Singapore.
Nescafe 3 in 1
: Coffee for customers who are busy in life.
Marketing Mix (4Ps)
The Marketing environment at Nestle focuses on the principle of satisfying consumer needs.
The overall trust of consumers in Nestlé’s brands and products comes from a quality image that
has been continuously strengthened for over 130 years.
Nestlé strives to increase this trust through its commitment to environmentally sound business
practices. For this purpose Nestle:
• Bases environmental claims in advertising, promotional material, labeling and corporate
communications on solid scientific evidence;
• selects materials and printing methods for merchandising materials such as:
• Consumer offers,
•
In-store promotions,
• Displaying materials, leaflets and printed materials in light of environmental
considerations.

10. PRINCIPALS OF MARKETING PROJECT ON NESTLE
BY:FARHAN JALIL & MUJAHID IQBAL 10
Product
• Nestle Orange juice
• Flagship brand (number 1 brand in juices)
• 100% pure, no preservatives, no artificial flavor added
Price
• 1LTR Rs.220
• 20 ml Rs.25
Place
Available at all major cities such as
 Lahore
 Islamabad
 Multan
 Faisalabad
 Gujranwala
 Karachi
Promotion
• In order to promote their products Nestle Juices uses the following medium.
o Bill boards
o Above The Line
o Below The Line
Target market
The target market of Nestle juices includes:
• Both male and female between the age group of 19-31
• Health conscious people
• Socio eco class SEC A and B
• Urban areas
• Career oriented and life starters

11. PRINCIPALS OF MARKETING PROJECT ON NESTLE
BY:FARHAN JALIL & MUJAHID IQBAL 11
Competitors
• Shezan All Pure
• Haleeb Good Day
Sales Growth
Nestle orange juice has been a flagship brand of Nestle juices since years. However, their sales
declined to -1 % as compared to last year.
Last year growth in sales .This year growth in sales
20% -1%
• As per the meeting with the Brand manager juices, we got an insight about customer
attitude, competitors, product development etc.
• Total contribution of orange juice is 20% to revenue in the juices category; however the
overall market share of juices is 60%.
Customer Attitude
The main concern that the consumers of Nestle Orange juices have regarding the juice is
related to the purity of the juice. The factor and the feature that they are most concerned with is
that is the juice 100% pure and healthy?
The responses of prior studies reveal:
• People actually think that fruit juices are not that great for them because of the fructose
(fruit sugar). They think that when this fructose is processed its pure sugar gets TERRIBLE for
their health. So the solution to them is that if they want to have a taste of orange they should try
having an actual orange because the fiber in the pulp skin and roughage will slow the
absorption of the fructose.