Marketing Term Report nestle

Marketing Nestlé Pakistan Limited TermReport
May 14
Contents
Nestlé....................................................................................................... Error! Bookmark not defined.
Acknowledgement ............................................................................................................................4
EXECUTIVE SUMMARY.....................................................................................................................5
Introduction ......................................................................................................................................6
By the Company: ...........................................................................................................................6
Our Mission Statement .....................................................................................................................6
Our vision and values.......................................................................................................................7
Our Ambition ....................................................................................................................................7
OVERVIEW OF NESTLÉ ....................................................................................................................7
Origin: ...........................................................................................................................................7
NESTLÉ IN PAKISTAN ...................................................................................................................8
Current Overview of Nestlé Milk Pak Ltd’s ....................................................................................8
PRODUCT LINE.................................................................................................................................8
Dairy products...............................................................................................................................8
Chilled dairy ..................................................................................................................................9
Beverages......................................................................................................................................9
Bottled water ...............................................................................................................................10
Culinary and Foods .....................................................................................................................11
Baby Food ...................................................................................................................................11
BCG Matrix .....................................................................................................................................12
BRANDING STRATEGY OF NESTLE PURE LIFE.............................................................................13
POSITIONING...............................................................................................................................13
LABELING.......................................................................................................................................13
Nestlé Nutritional Compass.........................................................................................................13
Nutritional Information ................................................................................................................14
Good question:............................................................................................................................14
Good to know:.............................................................................................................................14
Good to remember: .....................................................................................................................14
Good to talk:................................................................................................................................14
MARKET SEGMENTATION..............................................................................................................14
Geographic Segmentation...........................................................................................................15
Demographic Segmentation........................................................................................................15

May 14
NEWPRODUCT DEVELOPMENT .....................................................................................................15
PRICE FIXATION STRATIGIES ........................................................................................................15
Profit Earning: .............................................................................................................................15
Customer satisfaction: ................................................................................................................15
STRATIGIES FOR FIXING THE PRICE:.........................................................................................15
SUCCESS & FAILIURE OF DIFFERENT PRODUCTS VS ..............................................................18
CONSUMER BUYING BEHAVIOR ................................................................................................18
FUTURE PROSPECTS AND CHALENGES FOR THE ....................................................................18
COMPANY ...................................................................................................................................18
RECOMMENDATIONS .....................................................................................................................18
CONCLUSION .................................................................................................................................19

May 14
Acknowledgement
In the name of Allah, The Most Gracious, The most Merciful. First of all we are thankful
to Allah Almighty for giving us the Mind to think, Heart to feel the consequences of our
business idea, strength to complete and Ability to work successfully on our project.
We have taken efforts in this report. However, it would not have been possible without
the kind support and help of many individuals and organization. We would like to extend
our sincere thanks to all of them.
We are highly indebted to Indus University for their guidance and constant supervision
as well as for providing necessary information regarding the report & also for their
support in completing the report.
We would like to express our gratitude towards our parents & member of Indus
University for their kind co-operation and encouragement which help us in completion of
this report.
We would like to express our special gratitude and thanks to industry persons for giving
us such attention and time.
Our thanks and appreciations also go to our colleague in developing the report and
people who have willingly helped us out with their abilities.

May 14
EXECUTIVE SUMMARY
Nestlé is undoubtedly one of the most proficient food companies not only in Pakistan
but all over the world. The employees at Nestle have finagled to retain their standards to
the most high-pitched level possible in the market. They make sure of the fact that the
products of Nestle are definitely the BEST TO USE. Nestle has an assortment of
products to offer and they all are the best of their types.
For this project our main concern was to study the strategies followed by Nestle in
regard to the 4P’s of marketing. We got some information from internet about the overall
history and background of the company. About other information we talked with Mr.
Yaseen (Assistant Manager of Mechanical department Nestle).It was quite nice of him
to provide us with all the relative information. We tried to cover all the main aspects of
our course starting from some basic concepts to the complex ones.
Now days for any company to progress in the market its marketing strategies are of
supreme importance and that is the reason we opted for Nestle to try and cognize what
exceptional they were doing to maintain their top position in the market.
In Finding and Analysis we have described the marketing techniques observed at Nestle
and then also did our analysis on these observed techniques.
In the end we made some recommendations based on our analysis to make them
improve their overall revenue rate.

May 14
Introduction
By the Company:
Nestlé is an international corporation that produces a variety of products including food,
beverages and pharmaceuticals. The company was founded in 1867 in Vevey,
Switzerland and has facilities worldwide.
Nutrition, Health and Wellness is Nestlé’s strategic direction. We want you to be able to
make healthy choices about your food and beverages. We also believe that good food
sometimes means treating yourself!
We aim to make your life more pleasurable because our products not only taste better;
but they are also more nutritious.
Here we have listed some articles and tools to provide you good information about
Nutrition, Health and Wellness.
Our Mission Statement
Nestlé is...
...the world's leading nutrition, health and wellness company. Our mission of "Good
Food, Good Life" is to provide consumers with the best tasting, most nutritious choices
in a wide range of food and beverage categories and eating occasions, from morning to
night.

May 14
Our vision and values
To be a leading, competitive, Nutrition, Health and Wellness Company delivering
improved shareholder value by being a preferred corporate citizen, preferred employer,
preferred supplier selling preferred products.
Our Ambition
To be the leading Nutrition, Health and Wellness Company in Pakistan.
OVERVIEW OF NESTLÉ
Nestlé’s Brief History
Origin:
The key factor, which drove the early history of the enterprise that would become
The Nestlé Company, was Henri Nestlé's search for a healthy, economical alternative to
breastfeeding for mothers who could not feed their infants at the breast.
(Henri Nestlé, Scientist and businessman, Founded Nestlé over)

May 14
NESTLÉ IN PAKISTAN
Nestlé came to Pakistan in 1989, before 1989 there was a whole seller of Nestlé in
Karachi named “Sultan Chawala”. In 1992 Nestlé made a Joint Venture with “MilkPak
Ltd.” and named as “Nestlé MilkPak Ltd.”
Current Overview of Nestlé Milk Pak Ltd’s
Now a day’s company is running in profit. According to Nestlé they never face slump in
normal days, because food products are the demand of every time either it is slump or
boom. 11th September Company faces some problems for 20-25 days. As at that time
there was slump on all industries of Pakistan. But now it is working as previous.
PRODUCT LINE
Dairy products
MilkPak
Nesvita
Nido
MilkPak
Cream
EveryDay

May 14
Chilled dairy
NESTLÉ
YOGURT
SWEETN
TASTY
NESTLÉRAITA
Beverages
NESTLÉ
FRUITA
VITALS&
NESFRUITA

May 14
MILO
NESCAFE
Bottled water
NESTLÉPURELIFE

May 14
Culinary and Foods
MAGGINOODLES
Baby Food
CERELAC

May 14
BCG Matrix
Expansion Grid
Star
Nestlé Pure
Life, Everyday,
Cerelac.
Question
Mark
Crunch
Cash Cows
Nestlé Milk
Pack, Juices,
Nescafe
Dog
instant drink
Lemo Malta
Market Penetration:
Nestle Fruita VItals
Product Development:
NesVita
Market Development:
Mineral Water, Globally
Diversification:
L`Oreal
Expansion
Grid

May 14
BRANDING STRATEGY OF
NESTLE PURE LIFE
Nestle brand name present a message of caring which make it distinctive and attractive
than other companies. Pure Life's brand is good food for good life. The message of
family protection is enough to get the attraction of customer. The Nestlé's brand name is
easy to understand & translate. It is easy to pronounce and it is also easy to recognize.
Another message in brand name is given to customer to preserve their families from
different deceases.
POSITIONING
We will position our product as a high quality product consumer focused. Messages like
“Who knows your taste better than us”,
“Nestle ice-cream now at your door step”;
“Add additional flavors’ to your life”
Will help us portray our picture clearly and distinctly. We will position our product
against the competitors and gain competitive advantage through our efficient
promotional methods, using innovations, and by reaching closer to our target market
through the arrangement of events like BASANT, VALENTINE DAY and etc. In short
consumers will view us as a product providing highly quality, in terms of taste, customer
focused and, at the same time reasonably priced as compared to others.
LABELING
Making healthier choices for you and your family can be very confusing.
To help you make informed choices about your diet and to enjoy a more healthy and
balanced life, Nestlé has developed an on-pack tool called the Nestlé Nutritional
Compass.
Nestlé Nutritional Compass
The Nestlé Nutritional Compass can be found on almost all Nestlé products worldwide.
It gives you at-a-glance information to help you make decisions.
The compass comprises four boxes:

May 14
Nutritional Information
This information is given in a standardized format that will allow you to easily compare
the amount of energy, protein, carbohydrate and fat in different products.
Good question:
A question related to the consumption of the product and its fit in a balanced diet.
Good to know:
This information box provides nutritional information about the product, explaining one
or more elements of the nutrient table or benefits of any ingredient. It could address
issues of public concern e.g. amount of fat, sugar or salt contained in the product.
Good to remember:
This box provides tips, advice and information related to the consumption of the product
in a balanced diet. This box may also provide healthy lifestyle tips to supplement a
healthy diet.
Good to talk:
Here, you can find our telephone number, address or website details for getting in touch
with us with your concerns or questions.
MARKET SEGMENTATION
For getting the maximum market share and respect of the product in the minds of the
consumer, as per our observation and market survey we have concluded that Nestle
market segmentation is based on two points.

May 14
Geographic Segmentation
The company has divided its geographic segmentation in several regions. First they
have the segmentation of a whole country and from each provincial capital, they divided
its areas into north, east, west, south. So that it could be easy for the company to work
efficiently on its supply chain management.
Demographic Segmentation
Nestle items aren’t a supreme quality products that only the high class uses. There is no
age, sex, income and any other kind of limitation on use of its products. The product is
for all. Anyone can use the product as per need.
NEWPRODUCT
DEVELOPMENT
PRICE FIXATION STRATIGIES
These are following objectives of nestle pure life regarding price fixation:
Profit Earning:
Profit earning is the main objective of every company but in case of nestle their profit
margin is low. Only a few amount of profit is collected from pure life water.
Customer satisfaction:
In nestle pure life price is not fixed by keeping in mind profit motive, only customer
satisfaction is kept in mind while fixing the prices.
STRATIGIESFOR FIXING THE PRICE:
In nestle prices are set on cost basis as given below:
Price = Cost + Profit
Break even or Target price:
Per Unit Price= variable cost + fixed cost / units of sale

May 14
PRODUCT LIFE CYCLE
IntroductoryStage
 Frequent product modification
 Limited distribution
 High marketing and production costs
 Promotion focuses on awareness and information
 Nestlé India Ltd. (NIL), the Indian subsidiary of the global FMCG major ,Nestlé SA,
introduced the Maggi brand in India in 1982, with its launch of Maggi 2 Minute Noodles,
an instant noodles product
 With the launch of Maggi noodles , NIL created an entirely new food category -instant
noodles -in the Indian packaged food market. Because of its first-mover advantage, NIL
successfully managed to retain its leadership in the instant noodles category

May 14
Growth Stage
 Increasing rate of sales
 Entrance of competitors
 Initial healthy profits
 Prices normally fall
 Development costs are recovered
 10 yrs back it enjoyed around 50% market share in this segment which was valued at
around 250 crores.
 During the 1990s, the sales of Maggi noodles declined
 In order to improve sales, NIL changed the formulation of Maggi noodles in 1997.
However, this proved to be a mistake, as consumers formulation of the noodles, after which
the sales revived. Over the years, NIL also introduced several other products like soups and
cooking aids under the Maggi brand.
Maturity Stage
 Saturated markets
 Extending product line
 Stylistic product changes
 Heavy promotions to dealers and consumers
 Prices and profits fall
 In 2003 Hindustan Lever Ltd was all set to take on Nestle's bestselling Maggi2-
minute noodles by launching a new category of liquid snacks under its food
brand, Knorr Annapurna.
 The new product, called Knorr Annapurna Soupy Snax, was priced aggressively
at Rs 5 and had four variants: two chicken options and two vegetarian.

May 14
 Like Maggi, Soupy Snax will be an in-between-meals snack and will be targeted
at all age groups, particularly office-goers. Many consumer products are in
Maturity Stage.
Decline Stage If No Product
Innovation Brought
 Long-run drop in sales
 Large inventories of unsold items
 Elimination of all nonessential marketing expenses
SUCCESS & FAILIURE OF DIFFERENTPRODUCTS VS
CONSUMER BUYING BEHAVIOR
In buying Nestlé products no “Complex or Dissonance buying behavior” is under taken
as Nestlé products are not very expensive, risky, infrequent purchased, less difference
in brands and highly self-expressive; but products are of daily use less in price and
purchased frequently.
FUTURE PROSPECTS ANDCHALENGES FOR THE
COMPANY
Nestlé is manufacturing many products. The logo of the company is based on quality
and customer satisfaction. Many people said that the Nestlé’s marketing management
philosophy is based on quality, so Nestlé is at product concept but it is not the reality.
RECOMMENDATIONS
 The pricing strategy should be improve in order to retain more customers
 Instant drinks should be re-launch with different marketing strategy

May 14
 Nestle should improve their customer service as being their customer we are not
satisfied with their customer service.
CONCLUSION
For a company that will turn one hundred in a decade, Nestle has almost tried all of the
strategies there can be. Nestle company has expanded internationally, helped
countries’ economies grow, be environmentally conscious and create joint ventures with
other companies in which enhanced Nestlé’s and these companies’ performance
positively.

Marketing Term Report nestle

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