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MARKETING REPORT ON NESTLÉ CERELAC                                  1




                   NESTLE CERELAC


Yumna Iftikhar, Muniza Hashmi, Sumaira faiz, Mustafa Javaid, Marzia Sakhi
                            BS(BA)-4th-B


            Balochistan University of Information Technology,


                 Engineering and Management Sciences
MARKETING REPORT ON NESTLÉ CERELAC                         2




“Cerelac is a best start of one's life and off course future too”




                    TABLE OF CONTENTS
MARKETING REPORT ON NESTLÉ CERELAC                              3


   1. Letter of acknowledgment…………………………………….....5

   2. Executive summary……………………………………………....6

   3. Why this product…………………………………………………7

   4. Company profile…………………………………………………..8

   5. Brief description of the company…………………………………8

   6. Company vision and mission
      statement…………………………………………………..….…8,9

   7. Marketing objectives………………………………………………9

   8. Brief description of the product………………………………..…10

   9. Industry analysis ……………………………………………….…13
      Consumption
      Trends
      Profitability
      Future growth potential

   10. SWOT analysis……………………………………………………14

   11. Competition………………………………………………………15

   12. Target marketing …………………………………………………16

   13. Basis for segmentation……………………………………………16

   14. Segment needs ……………………………………………………17

   15. Segment growth potential…………………………………………17

   16. Size of segment………………………………………………..…18

   17. Positioning & differentiation strategy……………………………18,19

   18. Defining the marketing mix………………………………….……20
       Product strategy
       Price strategy
       Promotion strategy
       Placement strategy

   19. CRM by the organization…………………………..………….…23
MARKETING REPORT ON NESTLÉ CERELAC                                                4


           20. Conclusion……………………………………………………….25

           21. Bibliography……………………………………………………..26




                            ACKNOWLEDGEMENT

Praise is to “ALLAH” Almighty, the one testing us all at all times and making decisions about

what we don’t know and can’t know. All thanks to him who gave us courage to undertake and

complete this project.
MARKETING REPORT ON NESTLÉ CERELAC                                                     5


      Any accomplishment requires the effort of many people and there are no exceptions. The

report being submitted today is a result of collective effort. There are innumerous

helping hands behind who have guided us on our way.


Writing this report appeared to be a great experience to us. It added a lot to our knowledge. This

report is one of our memorable experiences in student life. Though words are inadequate in

offering thanks to our teacher but we owe profound gratitude to


MR. Mateeh Ullah Khan

For stimulating our creative abilities by assigning this project to us and for his able guidance

and useful suggestions, which helped us in completing the project work, in time.


Whatever we have learnt from him and this project report has put indelible impression on our

minds.


It is our conviction that this learning experience will always be a source of help in our practical

life and professional career.


Finally, yet importantly, we would like to express our heartfelt thanks to our beloved parents,

for cooperation, help, kindness and blessings, our friends for their help and wishes for the

successful completion of the work.


                                EXECUTIVE SUMMARY

This is a semester project regarding a baby food product name Nestlé Cerelac. It starts with an
introduction about Nestlé Company. It gives a briefing about all the brands of the Nestlé
Company.
MARKETING REPORT ON NESTLÉ CERELAC                                                     6


      Nestle has been serving worldwide with its excellence in product safety, quality and
value. It provides many products which include dairy products, beverages, water, and infant
dietetic and confectionary. We have taken NESTLE Cerelac for our project report. Their aim is
to provide customer with best infant food on suitable prices make the product as convenient as
possible. According to their claim that they provide the best food through out the world.

Here we are analyzing the marketing plan of Nestlé which is an FMCG; we have made a project
report on Nestlé Cerelac. We will be seeing different strategies of the company. We will see the
various strategies that can be used by them for improving their product. Our report includes a
brief description of the company vision and mission statement its marketing objectives,
description of the product, situation analysis,       industry analysis, Consumption, trends,
profitability and future growth potential, SWOT analysis, Competition.

This report also includes the marketing mix of the product has been discussed to reveal the
significance of its product, pricing, promotion and placement.

Segmentation and targeting will help to understand the criteria of Nestlé marketing for the
specific product.

In the end there has been explained CRM of Nestlé after that report has been concluded.




                              WHY THIS PRODUCT?

Market worldwide especially into developing regions such as Asia, MEA and Latin America
with large ever growing baby population and increasing income levels. China, Russia, Brazil
India, Indonesia & Saudi Arabia are the most promising markets for as these countries have
highest baby population and fastest growing middle class population.
MARKETING REPORT ON NESTLÉ CERELAC                                                     7


       We do not have as such varieties of baby foods here in Pakistan so we have selected the
leading brand of food in the world that’s Nestlé. Here in Pakistan many people do not pay
attention on their Childs’ needs and requirements and provide them unhealthy food. We have
searched for the brand Nestlé Cerelac and now we are going to present thorough report on
Nestlé Cerelac.

While milk remains the most important source of nutrition in the first year of baby’s life, every
baby reaches the developmental stage when milk alone is not enough to sustain rapid growth
and development.
Nestlé CERELAC is ideal as it is a nutritionally complete meal for every occasion and superior
to porridges, maize meal and jars. Moms can feed CERELAC to babies at any time of the day
because it is a baby food, not a breakfast cereal.


CERELAC compliments the milk feeds perfectly as it has the nutritional value of a fully
balanced meal for baby, and tastes great too! By feeding your baby CERELAC you can be
assured that your baby gets all the energy, protein, vitamins and minerals needed for optimum
growth development - just add water!




                               COMPANY PROFILE

Description of Nestle:

Nestlé began in Switzerland in the mid 1860s when founder Henri Nestlé created one of the first
baby formulas. Henri realized the need for a healthy and economical product to serve as an
MARKETING REPORT ON NESTLÉ CERELAC                                                    8


      alternative for milk. Henri’s product was a carefully formulated mixture of cow’s milk,
flour and sugar. Nestlé’s first product was called Farine Lactée (“cornflour gruel” in French)
Henri Nestlé.

The start of World War I made it difficult for Nestlé to buy raw ingredients and distribute
products. Fresh milk was scarce in Europe, and factories had to sell milk for the public need
instead of using it as an ingredient in foods. Nestlé purchased several factories in the U.S. to
keep up with the increasing demand for condensed milk and dairy products via government
contracts. The company’s production doubled by the end of the war. When fresh milk became
available again after the war, Nestlé suffered and slipped into debt. The price of ingredients was
increasing, the economy has slowed and exchange rates deteriorated because of the war.

In 1874, The Anglo-Swiss Condensed Milk Company, founded by Americans Charles and
George Page, merged with Nestlé after a couple of decades as fierce competitors to form the
Nestlé and Anglo-Swiss Milk Company.

Expanding its product line outside of the food market, Nestlé became a major stockholder in
L’Oreal cosmetics in 1974. Many organized groups began boycotting all of Nestlé’s products
because they disapproved of Nestlé marketing its baby formula in developing countries.
Problems like illiteracy and poverty caused some mothers to use less formula than
recommended. In a watered down formula, vital nutrients are lessoned. Contaminated water
presented another problem, since the formulas had to be mixed with water. The organizations
argued that the misuse of formula resulted in the malnutrition or death of many infants in
developing countries.

According to Nestlé the World Health Organization never made statements tying infant death or
malnutrition with baby formulas. The company didn’t deny the superiority and agreed that
substituting milk for other substances could be very dangerous. Nestlé explained that
breastfeeding and non-breastfeeding mothers in developing countries often gave their babies
whole cow’s milk, tea, cornstarch, rice water or a mix of flour and water. These alternatives
were very unhealthy and a nutritional baby formula was a better choice. Nestlé says that it has
never discouraged breastfeeding when it was possible. Nestlé agreed to follow the International
Code in developing countries in 1984, and the boycott was suspended. It resumed several years
later when the organizations believed Nestlé was sending free or low cost baby formulas to
developing countries. Nestlé said it only sent formula to countries that allow donations for
orphans, multiple births, and babies with no access to milk. The company has stopped all public
advertising for formula in developing countries for almost 20 years. The boycott continues to
some extent to this day without satisfactory resolution.
MARKETING REPORT ON NESTLÉ CERELAC                                                  9


      The company focused on improving its financial situation and continuing to expand. The
leading in the food industry, Nestlé brings in $81 billion in overall sales and has 470 factories
around the world. Nestlé will continue to grow, introduce new products and renovate existing
ones. The company’s mission is to focus on long-term potential over short-term performance.

Nestlé expands across many different markets including beverages, ice cream, baby
foods/formulas, soups, frozen foods, snacks, pet care and of course candy.
In line with Nestlé’s global philosophy, Nestlé Pakistan is proud of its commitment to
excellence in product safety and quality and to providing value and aims to be the leading
Nutrition, Health and Wellness Company. As a socially responsible corporate, we always focus
on environment friendly operations, ethical business practices and our responsibility towards the
communities.

Nestlé factories are operating in the regions:

   •    Africa

   •    America

   •    Asia

   •    Europe

   •    Oceania


Vision:
Nestlé’s global vision is to be the recognized leading Nutrition, Health and Wellness Company.
Nestlé Pakistan subscribes fully to this vision of being the number one Nutrition, Health, and
Wellness Company in Pakistan. In particular, we envision to;

   •    Lead a dynamic, passionate and professional workforce – proud of our heritage and
        positive about the future.
   •    Meet the nutrition needs of consumers of all ages – from infancy to old age, from
        nutrition to pleasure, through an innovative portfolio of branded food and beverage
        products of the highest quality.

   •    Deliver shareholder value through profitable long-term growth, while continuing to play
        a significant and responsible role in the social, economic, and environmental sectors of
        Pakistan.
MARKETING REPORT ON NESTLÉ CERELAC                                                     10


      Mission:

To positively enhance the quality of life of the people of world by all that we do through our
people, our brands and products and our CSV activities.

Ambition:

To be the leading Nutrition, Health and Wellness Company.

Marketing Objectives:
Marketing objectives are compatible with the overall corporate objectives of nestle. Company’s
objective is to be the world’s largest and best branded food manufacturer while insuring that
nestle name is synonymous with the products of the highest quality.


Description of Nestle` Cerelac:

Feeding your baby properly is one of the most important aspects of baby care. There are a
number of baby brands for food available in the market. One of the most popular baby food
brands is Cerelac manufactured by Nestle. This pediatric food product called Cerelac is
considered very nutritious and good for babies' health and growth. Besides, Nestle Cerelac is
easily digested by infants.

Nestle Cerelac is a highly nutritious, easily digested instant cereal, containing milk powder. An
excellent source of energy with complex carbohydrates that are enriched with key nutrients
suitable for baby’s little tummy. It also provides essential nutrients including vitamins and
minerals. Such minerals include calcium to build healthy bones and teeth, and iron, which is
required to generate red blood cells.

Cerelac packs in all the necessary baby nutrition factors and serves as a complimentary meal for
babies above 6 months. This is because, after the age of 4, a baby's body requires more fuel and
that can be supplied with Cerelac to meet up the nutritional requirements of the growing baby.




Cerelac Offered in:

Cerelac come in a range of seven varieties of baby food products which are as follows:
MARKETING REPORT ON NESTLÉ CERELAC                                                11


          •   Cerelac Rice
   •    Cerelac Wheat

   •    Cerelac Wheat - apple

   •    Cerelac Wheat - honey

   •    Cerelac Wheat - banana

   •    Cerelac Wheat - 3- fruits

   •    Cerelac Wheat - 4 – Vegetables

Nestlé Cerelac:

BL Bifidus together with the combination of iron, zinc, vitamin A & vitamin C nutrients have
been shown to help strengthen your child’s natural defenses day by day.

Infant Cereal Rice & Milk

Nestlé CERELAC Infant Cereals Stage 1 makes it easier for you to gradually introduce solid
food to your child.

Infant Cereal Brown Rice

The mild tastes of Nestlé CERELAC Infant Cereals Stage 1 make for a gentle move from a
milk-only diet.

Infant Cereal Rice & Soya

Nestlé CERELAC Infant Cereals Stage 1 helps you to ensure that your child has a varied and
nutritious diet.

Infant Cereal Rice & Mixed Fruits

Nestlé CERELAC Infant Cereals Stage 2 introduces more new tastes to help develop your little
one's taste buds.

Infant Cereal Rice & Mixed Vegetables

Nestlé CERELAC Infant Cereals Stage 2 – another step forward in your little one's journey of
nutritional discoveries.
MARKETING REPORT ON NESTLÉ CERELAC                                                        12


      Infant Cereals Wheat & Honey

After 6 months, your child is ready to discover new tastes. His taste buds can differentiate
between foods.

Cerelac Oats, Wheat & Prunes

Between 8-11 months of age, babies need more than just nutritional value in food.

Infant Cereal Rice & Chicken

Nestlé CERELAC Infant Cereals Stage 3 has richer tastes and textures to suit your child's
chewing and swallowing abilities.

Infant Cereal Wheat & Ikan Bilis

Let your child explore different taste & texture

Toddler Cereals Honey Joy

Nutritionally tailored for children 1 year and above, Nestle CERELAC Toddler Cereals Honey
Joy provides wholesome goodness of wheat, corn flakes and honey.

Toddler Cereals BL Multi Grain & Mixed Fruits

A complete meal everyday, Nestlé CERELAC Toddler Cereals BL Multi Grain & Mixed Fruits
is suitable for children 1 year and above. It provides wholesome nutrition of whole grain and
real fruit bits.

Toddler Cereals BL Multi Grain & Garden Vegetables

Nestle CERELAC Toddler Cereals BL Multi Grain & Garden Vegetables is suitable for children
1 year and above. It is packed with the right proportion of selected ingredients in dense volumes
which are suitable for their growing years.
MARKETING REPORT ON NESTLÉ CERELAC                                                    13


                             SITUATIONAL ANALYSIS
Industry Analysis:


      Consumption:

      The Nestlé Cerelac consumers are spread all over the world one of the reasons behind is
      the lower prices offered by Nestlé and its easy availability every where. Nestlé Cerelac is
      that much available that people hardly find any other Cerelac in market with an ease.
      The consumers are the infants of course but the customers are the parents and they select
      the best quality material for their children and that’s Nestlé Cerelac.

      Trends:

      Nestlé will apply insights into changing lifestyles by providing innovative ideas that
      appeal consumers.

      Every market is different, but Nestlé Professional has identified seven global trends:

      Evolving role

      With more women working outside of the home, demand for convenient, on-the-go
      family food is rising.

      Risk society

      In an uncertain world, people are turning to brands they can trust. And they’re becoming
      increasingly aware of the corporate behavior of the companies they buy from.

      Fluid lives

      The nine-to-five, three-square-meals-a-day routine is becoming a thing of the past.
      People want to be able to shop, eat and drink on their terms, where and when they feel
      like it.

      Fusion

      Holidays, world media and globalization have made us open to exotic new cuisines and
      creative taste combinations.



      Pleasure principles
MARKETING REPORT ON NESTLÉ CERELAC                                                              14


 The pressures of modern life mean people find it increasingly easy to justify treating
 themselves. That means being able to have their food and drink “their way”, with the
 ingredient options and flavorings of their choice.

 Wising up

 Well-informed consumers won’t come back for a second visit if the first is
 disappointing. And legislation and watchdogs are giving them new information about
 their choices.

 Seeking balance

 People want balance in their diets and in their lifestyles. They’ll choose healthy options,
 but they also like to indulge if the right treat is on offer.

 Profitability:

 Net profit was more than tripled in 2010, as the world's largest food company
 successfully navigated the triple pressure in the U.S. and Europe.

 In august 2011, Sales also fell 12.9 percent.

 Nestle chief executive Paul Bulcke described the business environment as “extremely
 tough, volatile and competitive,” given the economic instability, rising raw material
 prices and the strong Swiss currency a strong factor for decline.

 Nevertheless, they managed to drive growth not only in emerging markets but also in
 developed countries, especially in Europe.

 Nestlé has been on a drive to grow in these countries by reformulating many products
 and finding cheaper packaging in order to make them affordable and accessible for the
 poorest consumers.

 Future Growth Potential:

 Nestle is today the world’s largest food and beverage company with its mission to provide
 healthier lifestyle. It has launched many products in Pakistan the majority of which are popular and
 among the market leaders. Nestle is installing new plants and importing latest technologies to improve.
 Moreover, innovation is one of its greatest strengths so it has a bright future in Pakistan.
MARKETING REPORT ON NESTLÉ CERELAC                                                                15


       SWOT Analysis:

                         STRENGTHS ------------------TO BUILD ON
                         WEAKNESESS ----------------------TO COVER ON
                         OPPORTUNITIES -------------------TO CAPTURE
                         THREATS ------------------------------TO DEFEND ON

                  STRENGHTS                                               WEAKNESESS

Nestle includes a culture that is team focused and       One major weakness of Nestle is that it is entering into
an open door policy, ( Very long history over            markets that are already mature and can give a tough
140 years) focuses on collectivism and performance       competition to new entrants. Nestle Plain Yogurt has
orientation attitude which encourages employees to       proved to be a Nestle weakness because it has been
work hard. People all over the world trust and           unable to make its market place in USA. But Nestle by
recognizes Nestle as a big brand name. It looks at       analyzing the sensitive areas can overcome its
achieving higher volumes by renovating existing          weaknesses.
products and innovating new products, they are
low-cost operators which allow them to not
only beat Competition but also edging ahead
operating excellence, innovation, renovation,
product availability and communication are
major strengths. IT is an important aspect that people
all around the world are becoming more conscious
about health, that’s why they prefer Nestle.
                 OPPORTUNITIES                                              THREATS

Nestle in Pakistan has a great opportunity for       Nestle is facing the threats by worldwide community
expanding its markets because in Pakistan there is a due to its violation of international marketing standards.
large ready market of food and beverages due to trends
                                                     Many conferences and campaigns have been held
of eating and                                        against Nestlé in this regard which can damage the
                                                     name and trust of its customers. Another threat is due to
The increasing .It also has opportunities largely the increasing popularity of its competitor
in China and India as well. Through proper marketing OLPERS in local and international markets.
research Nestlé can cash on to these opportunities.




Competition:
MARKETING REPORT ON NESTLÉ CERELAC                                                 16


       Nestle competes with other packaged foods companies as well as store brands from
retailers Nestlé’s major competitors are:

   •    Farex
   •    Emeven Global Ltd


   •    Euro Africa Ltd

   •    zar & company

   •    Omani Euro Food Industries




                             TARGET MARKETING
MARKETING REPORT ON NESTLÉ CERELAC                                                     17


        Bases for Segmentation:
To occupy a clear distinctive and desirable place related to competing baby foods in the minds
of target customers Nestlé Cerelac segments its market on following bases:

    •    Geographic Segmentation

    •    Demographic Segmentation

    •    Psychographic Segmentation

    •    Behavioral Segmentation

Geographic Segmentation:

Cerelac segments its market geographically on divisional basis. They divide each division in
different zones and every distributer is restricted to sale its products only in his own zone. E.g.
Lahore is divided in to five zones like east, west, south, north and south west.

Demographic Segmentation:

Age:

They have segmented the market from early age infants to 5 years children and have launched
different flavors and kinds of Cerelac according to their requirements. On the other hand Nestlé
Cerelac has made this product for infants but has actually targeted the mothers who can either be
very old or young. Mothers are very conscious about their children health and want the best for
them.

Income Level:

People belonging to lower income groups cannot afford to buy readymade baby foods so Nestlé
will target that segment whose income puts them in the upper middle and higher income groups.

Social Stratification:

Buyers are divided into different groups based on social class and life style. Many consumers
live a simple life and belong to lower class; they don’t spend on buying artificial food for their
children and people belong to middle class or upper class can definitely opt for this.




Psychographic Segmentation:
MARKETING REPORT ON NESTLÉ CERELAC                                                     18


      Class consciousness:

Nestlé has also segmented the specific class of mothers who don’t want to give breast feed to
their children so Cerelac is the most preferable and best nourishing food for infants as proxy of
chest food.

Level of Education:

Nestlé makes promotional strategies keeping in view the customer level of education. If the %
of education is high in a country then through ads people can be made well aware of their
product and can convey their message easily. Promotion and education have a direct
relationship.

Behavioral Segmentation:

Benefits:

Buyers are classified according to the benefits they seek. Nestlé Cerelac has launched different
flavors and types of Cerelac according to benefits that are required by the children of different
stages of early life.

Segment needs:
Good nutrition is essential for the growth and development that occurs during an infant’s first
year of life. When developing infants are fed the appropriate types and amounts of foods, their
health is promoted. Positive and supportive feeding attitudes and techniques demonstrated by
the caregiver help infants develop healthy attitudes toward foods, themselves, and others.

During the first few years of life, the body grows at a very fast rate. The baby weighing on the
average about 3 kg. At birth doubles its weight by 6 months. The weight touches 9 kg. By 1
year. Infants and children are very active and they spend a lot of energy. They therefore, need
large amounts of body building and energy-giving foods rich in proteins and calories.

Segment Growth Potential:

Nestle, sees a healthy growth potential for its food products meeting specific dietary needs of
changing demands of the consumers that normal diets fail to do.

Mr. Patrice Bula, Nestlé’s global sales and marketing head, said, “With the impact of economic
growth and changing lifestyles in India, the need for science-based nutrition in products that we
consume everyday is going to be almost critical for a good life. We firmly believe that sales and
marketing is about responsible engagement with consumers. I have seen some very good
MARKETING REPORT ON NESTLÉ CERELAC                                                   19


     innovations and renovations in advertising communication, product development and in
expanding the distribution network.”

Nestlé besides milk and yoghurt, Nestle markets popular products like Maggi noodles, Nescafe
and Kit Kat chocolates in world. The company is observing its 100 years more in different
countries.

Size of the Segment:

Infants (0-5), mothers (18-45).

Differentiation strategy:
Our range is highly hygienic and has excellent strength that prevents the food from dust,
moisture and other contaminants, thereby increases shelf life. Further, our range is available in
different finishes and at most affordable rates to the clients.

    1. Nestlé Cerelac has strong brand image on the basis of quality.

    2. Nestlé Cerelac always segments the exact customers.

    3. Care pharmacy does not believe that till now any one of Nestlé competitors are
       successful to compete on the basis of quality.

    4. Nestlé Cerelac has positioned among people as health provider brand for infants.

Positioning Strategy:
We are familiar with the name, Cerelac and not only familiar but consumers too. Whenever
some one (parents) thinks about the product in baby food category for their babies, the first and
the last name comes in their mind is Cerelac. Why Nestle Cerelac is so popular and authentic
brand, the reason is Nestle that communicates itself as 'Good food, good life'. Cerelac is a name
of quality and best food for babies and the positioning statement of Cerelac also tells the same
as, 'best start to a healthier future'
Nestlé does positioning on several bases:
    1) On product attributes
    2) On needs / benefits
    3)   On Usage occasion
    4) For Classes of users
MARKETING REPORT ON NESTLÉ CERELAC                                       20


        5) Against competition
   6) Away from competitors


Target Market Profile:
       Geographic dispersion     Urban, suburban




       Family life cycle         Full nest, single parents




       Social Stratification     Upper upper class, lower upper class, upper
                                 middle class




      Age segments               Infants(0-5), mothers (18-45)




      Income                     Average, above average (50 k to 100 k per
                                 month)
MARKETING REPORT ON NESTLÉ CERELAC                                                  21


                                      MARKETING MIX
Product:
Sizes

It is available in 3 sizes; 350g and 175 g box packaging and a 25g sachet for customer
convenience.

Shape & Color

The shape and color are very attractive for the customers.

Labeling and packaging

The labeling and packaging includes Nestlé brand and logo. The packaging includes an expiry
date and time along with manufacturing date. Second part of labeling includes the quantity of
product in grams along with ingredients and contents.

Competitive Advantage

It is the only popular and quality baby food in Pakistan. Its unique `stay fresh seal and a long
lasting shelf life gives the brand a formidable competitive advantage. Not only it is easy to make
but also it is completely made considering the digest system and requirement for infants on
different stages of age. The factors that make Cerelac successful is quality and superior
nutritional value.

Price:




                   Nestle Cerelac      Nestle Cerelac        Nestle
Nestle Cerelac                                               strawberry &
                   banana              wheat
banana                                                       apple Cerelac
                   Price $ 2.75        Price $ 2.75
Price $ 2.75                                                 Price $ 2.75
MARKETING REPORT ON NESTLÉ CERELAC                                                       22




                       Nestle Cerelac   Nestle Cerelac 3
Nestle orange &        honey            fruit
apple Cerelac          Price $ 2.75     Price $ 2.75
Price $ 2.75




Promotion:
Nestle has adopted the channels for promotion through TV, News papers,
magazines Doctors and hoardings etc.


•Advertisement budget of the company

Nestle has preplanned to start the financial year but it is kept secret by the company.

•Share of promotion

Share of promotion in over all projects varies every year. Usually it is 40% of the product.

•Nature of marketing

The product is marketed aggressively in the market.

Placement:
Outlets for Product Located

Nestlé Cerelac is available all over in Pakistan regardless of big and small cities.

Direct Sales

It is not sold directly to the customers because of the extensive consumer groups. It is the reason
they sale the product through distributers for easiness of the company.
MARKETING REPORT ON NESTLÉ CERELAC                                                     23


      Warehousing Facilities

Nestlé Cerelac has its own warehouses for the storage of products as well as it also has hired
some warehouses.

Transportation Modes

Usually Nestlé mode of transportation is road which is also used for Cerelac.
MARKETING REPORT ON NESTLÉ CERELAC                                                      24


              CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
Nestle is the world's leading Nutrition, Health and Wellness company. The Company's priority
is to bring the best and most relevant products to people, wherever they are, whatever their
needs, throughout their lives.

Nestlé follows the trend with various marketing program to continuously improve and provide
nutritious products for a better customer service. Nestlé’s Customer Relationship Management
(CRM) is a complicated system which mostly and helpfully supports for marketing campaigns.
It contains more than 450,000 data of households, and has recently been upgraded to the second
version. Data migrating is a tiring and complex work.

Sector                Nutrition, health and wellness company
                      Customer Relationship Management (Tele-survey and database
Services
                      management)
                      Call Center with data entry operators, conducting tele-survey service and
Size
                      updating database of households per year.
                      Contacting moms with babies under 5.5 months-old to survey their
                      household's income, expense and nutrition incline, classify them to
                      different segmentations and invite them to participate in Nestlé’s
                      marketing program.

                      Contacting moms with babies of 7 months-old to survey moms' behavior
                      in infant cereal category.
Requirement
                      Contacting moms with babies of 14 moths-old to survey moms' behavior
                      in growing-up milk category

                      Manage and maintain Nestlé’s CRM system.

                      Exporting forms for field-work.
Solution              Due to the large amount of data, it sets up a systematic process to make
                      sure all new data has to be profiled and present in Nestlé’s CRM in a
                      proper time manner.
                         •   ACD report is used to manage agent's productivity and track
                             agent's recording for quality control
                         •   Setting up Quality Assurance process to prevent mistakes
                             happening during data input.
                         •   Issuing statistic reports in order to oversee how effective the
                             working process for further progress and improvement.

                         •   Tightly scheduling tele-work to assure households to be contacted
MARKETING REPORT ON NESTLÉ CERELAC                                           25


                       on-time.
               After 2 years of corporation, CRM has helped Nestle to clean up, verify
               and segment a very rich database of Nestle potential customers for
               appropriate marketing programs.

Benefits       With ongoing surveys to their customers & potential customers, Nestle
               can measure how effective their marketing programs on different groups
               of customer, how much improvement in brand recognition, in product
               consumption, etc so as to adjust their marketing programs to be more
               efficient in the following years.
MARKETING REPORT ON NESTLÉ CERELAC                                                                  26


                                   CONCLUSION

Nestle is today the world’s largest food and beverage company with its mission to provide healthier
lifestyle. It has launched many products in baby food line in Pakistan the majority of which are popular and
among the market leaders. Nestle is installing new plants and importing latest technologies to improve.
Moreover, innovation is one of its greatest strengths so it has a bright future in Pakistan.


Nestle must state in writing that it accepts that the international code and the subsequent relevant World Health
Assembly Resolutions are minimum requirements for every country. Nestle must state in writing that it will
make required changes to bring its Baby Food Marketing policy and practice into line with International
Code and Resolutions.




                                           BIBLOGRAPHY
MARKETING REPORT ON NESTLÉ CERELAC                                    27


     www.nestle.com
wikipedia.org/wiki/Nestlé
www.foodanddrinkeurope.com
www.foodnavigator.com
www.Google.com
www.shareinfoline.com
www.Ask.comsharekhan-firststep.com
http://www.nestle-ea.com/en/aboutus/OurMarkets/DRC/Pages
http://www.scribd.com/doc/29582425/Nestle
http://www.docstoc.com/docs/62851114/nestle
http://www.oppapers.com/subjects/nestle-cerelac-page1.html
http://www.oppapers.com/subjects/cerelac-page2.html
http://www.nestle.com/Brands/Pages/Brands
http://www.scribd.com/doc/36009148/Marketing
http://www.docstoc.com/docs/77088176/Nestle-Training
http://shortcaketales.blogspot.com/2011/02/makan-time.html
http://answers.yahoo.com/question/index
www.liveperson.com
http://www.biltongstmarcus.co.uk/nestle-cerelac-stage-1---banana-3029-p.asp
http://www.biltongstmarcus.co.uk/nestle
http://www.nestlebaby.com/sg/baby_nutrition/products

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Nestlé Cerelac Marketing Report

  • 1. MARKETING REPORT ON NESTLÉ CERELAC 1 NESTLE CERELAC Yumna Iftikhar, Muniza Hashmi, Sumaira faiz, Mustafa Javaid, Marzia Sakhi BS(BA)-4th-B Balochistan University of Information Technology, Engineering and Management Sciences
  • 2. MARKETING REPORT ON NESTLÉ CERELAC 2 “Cerelac is a best start of one's life and off course future too” TABLE OF CONTENTS
  • 3. MARKETING REPORT ON NESTLÉ CERELAC 3 1. Letter of acknowledgment…………………………………….....5 2. Executive summary……………………………………………....6 3. Why this product…………………………………………………7 4. Company profile…………………………………………………..8 5. Brief description of the company…………………………………8 6. Company vision and mission statement…………………………………………………..….…8,9 7. Marketing objectives………………………………………………9 8. Brief description of the product………………………………..…10 9. Industry analysis ……………………………………………….…13 Consumption Trends Profitability Future growth potential 10. SWOT analysis……………………………………………………14 11. Competition………………………………………………………15 12. Target marketing …………………………………………………16 13. Basis for segmentation……………………………………………16 14. Segment needs ……………………………………………………17 15. Segment growth potential…………………………………………17 16. Size of segment………………………………………………..…18 17. Positioning & differentiation strategy……………………………18,19 18. Defining the marketing mix………………………………….……20 Product strategy Price strategy Promotion strategy Placement strategy 19. CRM by the organization…………………………..………….…23
  • 4. MARKETING REPORT ON NESTLÉ CERELAC 4 20. Conclusion……………………………………………………….25 21. Bibliography……………………………………………………..26 ACKNOWLEDGEMENT Praise is to “ALLAH” Almighty, the one testing us all at all times and making decisions about what we don’t know and can’t know. All thanks to him who gave us courage to undertake and complete this project.
  • 5. MARKETING REPORT ON NESTLÉ CERELAC 5 Any accomplishment requires the effort of many people and there are no exceptions. The report being submitted today is a result of collective effort. There are innumerous helping hands behind who have guided us on our way. Writing this report appeared to be a great experience to us. It added a lot to our knowledge. This report is one of our memorable experiences in student life. Though words are inadequate in offering thanks to our teacher but we owe profound gratitude to MR. Mateeh Ullah Khan For stimulating our creative abilities by assigning this project to us and for his able guidance and useful suggestions, which helped us in completing the project work, in time. Whatever we have learnt from him and this project report has put indelible impression on our minds. It is our conviction that this learning experience will always be a source of help in our practical life and professional career. Finally, yet importantly, we would like to express our heartfelt thanks to our beloved parents, for cooperation, help, kindness and blessings, our friends for their help and wishes for the successful completion of the work. EXECUTIVE SUMMARY This is a semester project regarding a baby food product name Nestlé Cerelac. It starts with an introduction about Nestlé Company. It gives a briefing about all the brands of the Nestlé Company.
  • 6. MARKETING REPORT ON NESTLÉ CERELAC 6 Nestle has been serving worldwide with its excellence in product safety, quality and value. It provides many products which include dairy products, beverages, water, and infant dietetic and confectionary. We have taken NESTLE Cerelac for our project report. Their aim is to provide customer with best infant food on suitable prices make the product as convenient as possible. According to their claim that they provide the best food through out the world. Here we are analyzing the marketing plan of Nestlé which is an FMCG; we have made a project report on Nestlé Cerelac. We will be seeing different strategies of the company. We will see the various strategies that can be used by them for improving their product. Our report includes a brief description of the company vision and mission statement its marketing objectives, description of the product, situation analysis, industry analysis, Consumption, trends, profitability and future growth potential, SWOT analysis, Competition. This report also includes the marketing mix of the product has been discussed to reveal the significance of its product, pricing, promotion and placement. Segmentation and targeting will help to understand the criteria of Nestlé marketing for the specific product. In the end there has been explained CRM of Nestlé after that report has been concluded. WHY THIS PRODUCT? Market worldwide especially into developing regions such as Asia, MEA and Latin America with large ever growing baby population and increasing income levels. China, Russia, Brazil India, Indonesia & Saudi Arabia are the most promising markets for as these countries have highest baby population and fastest growing middle class population.
  • 7. MARKETING REPORT ON NESTLÉ CERELAC 7 We do not have as such varieties of baby foods here in Pakistan so we have selected the leading brand of food in the world that’s Nestlé. Here in Pakistan many people do not pay attention on their Childs’ needs and requirements and provide them unhealthy food. We have searched for the brand Nestlé Cerelac and now we are going to present thorough report on Nestlé Cerelac. While milk remains the most important source of nutrition in the first year of baby’s life, every baby reaches the developmental stage when milk alone is not enough to sustain rapid growth and development. Nestlé CERELAC is ideal as it is a nutritionally complete meal for every occasion and superior to porridges, maize meal and jars. Moms can feed CERELAC to babies at any time of the day because it is a baby food, not a breakfast cereal. CERELAC compliments the milk feeds perfectly as it has the nutritional value of a fully balanced meal for baby, and tastes great too! By feeding your baby CERELAC you can be assured that your baby gets all the energy, protein, vitamins and minerals needed for optimum growth development - just add water! COMPANY PROFILE Description of Nestle: Nestlé began in Switzerland in the mid 1860s when founder Henri Nestlé created one of the first baby formulas. Henri realized the need for a healthy and economical product to serve as an
  • 8. MARKETING REPORT ON NESTLÉ CERELAC 8 alternative for milk. Henri’s product was a carefully formulated mixture of cow’s milk, flour and sugar. Nestlé’s first product was called Farine Lactée (“cornflour gruel” in French) Henri Nestlé. The start of World War I made it difficult for Nestlé to buy raw ingredients and distribute products. Fresh milk was scarce in Europe, and factories had to sell milk for the public need instead of using it as an ingredient in foods. Nestlé purchased several factories in the U.S. to keep up with the increasing demand for condensed milk and dairy products via government contracts. The company’s production doubled by the end of the war. When fresh milk became available again after the war, Nestlé suffered and slipped into debt. The price of ingredients was increasing, the economy has slowed and exchange rates deteriorated because of the war. In 1874, The Anglo-Swiss Condensed Milk Company, founded by Americans Charles and George Page, merged with Nestlé after a couple of decades as fierce competitors to form the Nestlé and Anglo-Swiss Milk Company. Expanding its product line outside of the food market, Nestlé became a major stockholder in L’Oreal cosmetics in 1974. Many organized groups began boycotting all of Nestlé’s products because they disapproved of Nestlé marketing its baby formula in developing countries. Problems like illiteracy and poverty caused some mothers to use less formula than recommended. In a watered down formula, vital nutrients are lessoned. Contaminated water presented another problem, since the formulas had to be mixed with water. The organizations argued that the misuse of formula resulted in the malnutrition or death of many infants in developing countries. According to Nestlé the World Health Organization never made statements tying infant death or malnutrition with baby formulas. The company didn’t deny the superiority and agreed that substituting milk for other substances could be very dangerous. Nestlé explained that breastfeeding and non-breastfeeding mothers in developing countries often gave their babies whole cow’s milk, tea, cornstarch, rice water or a mix of flour and water. These alternatives were very unhealthy and a nutritional baby formula was a better choice. Nestlé says that it has never discouraged breastfeeding when it was possible. Nestlé agreed to follow the International Code in developing countries in 1984, and the boycott was suspended. It resumed several years later when the organizations believed Nestlé was sending free or low cost baby formulas to developing countries. Nestlé said it only sent formula to countries that allow donations for orphans, multiple births, and babies with no access to milk. The company has stopped all public advertising for formula in developing countries for almost 20 years. The boycott continues to some extent to this day without satisfactory resolution.
  • 9. MARKETING REPORT ON NESTLÉ CERELAC 9 The company focused on improving its financial situation and continuing to expand. The leading in the food industry, Nestlé brings in $81 billion in overall sales and has 470 factories around the world. Nestlé will continue to grow, introduce new products and renovate existing ones. The company’s mission is to focus on long-term potential over short-term performance. Nestlé expands across many different markets including beverages, ice cream, baby foods/formulas, soups, frozen foods, snacks, pet care and of course candy. In line with Nestlé’s global philosophy, Nestlé Pakistan is proud of its commitment to excellence in product safety and quality and to providing value and aims to be the leading Nutrition, Health and Wellness Company. As a socially responsible corporate, we always focus on environment friendly operations, ethical business practices and our responsibility towards the communities. Nestlé factories are operating in the regions: • Africa • America • Asia • Europe • Oceania Vision: Nestlé’s global vision is to be the recognized leading Nutrition, Health and Wellness Company. Nestlé Pakistan subscribes fully to this vision of being the number one Nutrition, Health, and Wellness Company in Pakistan. In particular, we envision to; • Lead a dynamic, passionate and professional workforce – proud of our heritage and positive about the future. • Meet the nutrition needs of consumers of all ages – from infancy to old age, from nutrition to pleasure, through an innovative portfolio of branded food and beverage products of the highest quality. • Deliver shareholder value through profitable long-term growth, while continuing to play a significant and responsible role in the social, economic, and environmental sectors of Pakistan.
  • 10. MARKETING REPORT ON NESTLÉ CERELAC 10 Mission: To positively enhance the quality of life of the people of world by all that we do through our people, our brands and products and our CSV activities. Ambition: To be the leading Nutrition, Health and Wellness Company. Marketing Objectives: Marketing objectives are compatible with the overall corporate objectives of nestle. Company’s objective is to be the world’s largest and best branded food manufacturer while insuring that nestle name is synonymous with the products of the highest quality. Description of Nestle` Cerelac: Feeding your baby properly is one of the most important aspects of baby care. There are a number of baby brands for food available in the market. One of the most popular baby food brands is Cerelac manufactured by Nestle. This pediatric food product called Cerelac is considered very nutritious and good for babies' health and growth. Besides, Nestle Cerelac is easily digested by infants. Nestle Cerelac is a highly nutritious, easily digested instant cereal, containing milk powder. An excellent source of energy with complex carbohydrates that are enriched with key nutrients suitable for baby’s little tummy. It also provides essential nutrients including vitamins and minerals. Such minerals include calcium to build healthy bones and teeth, and iron, which is required to generate red blood cells. Cerelac packs in all the necessary baby nutrition factors and serves as a complimentary meal for babies above 6 months. This is because, after the age of 4, a baby's body requires more fuel and that can be supplied with Cerelac to meet up the nutritional requirements of the growing baby. Cerelac Offered in: Cerelac come in a range of seven varieties of baby food products which are as follows:
  • 11. MARKETING REPORT ON NESTLÉ CERELAC 11 • Cerelac Rice • Cerelac Wheat • Cerelac Wheat - apple • Cerelac Wheat - honey • Cerelac Wheat - banana • Cerelac Wheat - 3- fruits • Cerelac Wheat - 4 – Vegetables Nestlé Cerelac: BL Bifidus together with the combination of iron, zinc, vitamin A & vitamin C nutrients have been shown to help strengthen your child’s natural defenses day by day. Infant Cereal Rice & Milk Nestlé CERELAC Infant Cereals Stage 1 makes it easier for you to gradually introduce solid food to your child. Infant Cereal Brown Rice The mild tastes of Nestlé CERELAC Infant Cereals Stage 1 make for a gentle move from a milk-only diet. Infant Cereal Rice & Soya Nestlé CERELAC Infant Cereals Stage 1 helps you to ensure that your child has a varied and nutritious diet. Infant Cereal Rice & Mixed Fruits Nestlé CERELAC Infant Cereals Stage 2 introduces more new tastes to help develop your little one's taste buds. Infant Cereal Rice & Mixed Vegetables Nestlé CERELAC Infant Cereals Stage 2 – another step forward in your little one's journey of nutritional discoveries.
  • 12. MARKETING REPORT ON NESTLÉ CERELAC 12 Infant Cereals Wheat & Honey After 6 months, your child is ready to discover new tastes. His taste buds can differentiate between foods. Cerelac Oats, Wheat & Prunes Between 8-11 months of age, babies need more than just nutritional value in food. Infant Cereal Rice & Chicken Nestlé CERELAC Infant Cereals Stage 3 has richer tastes and textures to suit your child's chewing and swallowing abilities. Infant Cereal Wheat & Ikan Bilis Let your child explore different taste & texture Toddler Cereals Honey Joy Nutritionally tailored for children 1 year and above, Nestle CERELAC Toddler Cereals Honey Joy provides wholesome goodness of wheat, corn flakes and honey. Toddler Cereals BL Multi Grain & Mixed Fruits A complete meal everyday, Nestlé CERELAC Toddler Cereals BL Multi Grain & Mixed Fruits is suitable for children 1 year and above. It provides wholesome nutrition of whole grain and real fruit bits. Toddler Cereals BL Multi Grain & Garden Vegetables Nestle CERELAC Toddler Cereals BL Multi Grain & Garden Vegetables is suitable for children 1 year and above. It is packed with the right proportion of selected ingredients in dense volumes which are suitable for their growing years.
  • 13. MARKETING REPORT ON NESTLÉ CERELAC 13 SITUATIONAL ANALYSIS Industry Analysis: Consumption: The Nestlé Cerelac consumers are spread all over the world one of the reasons behind is the lower prices offered by Nestlé and its easy availability every where. Nestlé Cerelac is that much available that people hardly find any other Cerelac in market with an ease. The consumers are the infants of course but the customers are the parents and they select the best quality material for their children and that’s Nestlé Cerelac. Trends: Nestlé will apply insights into changing lifestyles by providing innovative ideas that appeal consumers. Every market is different, but Nestlé Professional has identified seven global trends: Evolving role With more women working outside of the home, demand for convenient, on-the-go family food is rising. Risk society In an uncertain world, people are turning to brands they can trust. And they’re becoming increasingly aware of the corporate behavior of the companies they buy from. Fluid lives The nine-to-five, three-square-meals-a-day routine is becoming a thing of the past. People want to be able to shop, eat and drink on their terms, where and when they feel like it. Fusion Holidays, world media and globalization have made us open to exotic new cuisines and creative taste combinations. Pleasure principles
  • 14. MARKETING REPORT ON NESTLÉ CERELAC 14 The pressures of modern life mean people find it increasingly easy to justify treating themselves. That means being able to have their food and drink “their way”, with the ingredient options and flavorings of their choice. Wising up Well-informed consumers won’t come back for a second visit if the first is disappointing. And legislation and watchdogs are giving them new information about their choices. Seeking balance People want balance in their diets and in their lifestyles. They’ll choose healthy options, but they also like to indulge if the right treat is on offer. Profitability: Net profit was more than tripled in 2010, as the world's largest food company successfully navigated the triple pressure in the U.S. and Europe. In august 2011, Sales also fell 12.9 percent. Nestle chief executive Paul Bulcke described the business environment as “extremely tough, volatile and competitive,” given the economic instability, rising raw material prices and the strong Swiss currency a strong factor for decline. Nevertheless, they managed to drive growth not only in emerging markets but also in developed countries, especially in Europe. Nestlé has been on a drive to grow in these countries by reformulating many products and finding cheaper packaging in order to make them affordable and accessible for the poorest consumers. Future Growth Potential: Nestle is today the world’s largest food and beverage company with its mission to provide healthier lifestyle. It has launched many products in Pakistan the majority of which are popular and among the market leaders. Nestle is installing new plants and importing latest technologies to improve. Moreover, innovation is one of its greatest strengths so it has a bright future in Pakistan.
  • 15. MARKETING REPORT ON NESTLÉ CERELAC 15 SWOT Analysis: STRENGTHS ------------------TO BUILD ON WEAKNESESS ----------------------TO COVER ON OPPORTUNITIES -------------------TO CAPTURE THREATS ------------------------------TO DEFEND ON STRENGHTS WEAKNESESS Nestle includes a culture that is team focused and One major weakness of Nestle is that it is entering into an open door policy, ( Very long history over markets that are already mature and can give a tough 140 years) focuses on collectivism and performance competition to new entrants. Nestle Plain Yogurt has orientation attitude which encourages employees to proved to be a Nestle weakness because it has been work hard. People all over the world trust and unable to make its market place in USA. But Nestle by recognizes Nestle as a big brand name. It looks at analyzing the sensitive areas can overcome its achieving higher volumes by renovating existing weaknesses. products and innovating new products, they are low-cost operators which allow them to not only beat Competition but also edging ahead operating excellence, innovation, renovation, product availability and communication are major strengths. IT is an important aspect that people all around the world are becoming more conscious about health, that’s why they prefer Nestle. OPPORTUNITIES THREATS Nestle in Pakistan has a great opportunity for Nestle is facing the threats by worldwide community expanding its markets because in Pakistan there is a due to its violation of international marketing standards. large ready market of food and beverages due to trends Many conferences and campaigns have been held of eating and against Nestlé in this regard which can damage the name and trust of its customers. Another threat is due to The increasing .It also has opportunities largely the increasing popularity of its competitor in China and India as well. Through proper marketing OLPERS in local and international markets. research Nestlé can cash on to these opportunities. Competition:
  • 16. MARKETING REPORT ON NESTLÉ CERELAC 16 Nestle competes with other packaged foods companies as well as store brands from retailers Nestlé’s major competitors are: • Farex • Emeven Global Ltd • Euro Africa Ltd • zar & company • Omani Euro Food Industries TARGET MARKETING
  • 17. MARKETING REPORT ON NESTLÉ CERELAC 17 Bases for Segmentation: To occupy a clear distinctive and desirable place related to competing baby foods in the minds of target customers Nestlé Cerelac segments its market on following bases: • Geographic Segmentation • Demographic Segmentation • Psychographic Segmentation • Behavioral Segmentation Geographic Segmentation: Cerelac segments its market geographically on divisional basis. They divide each division in different zones and every distributer is restricted to sale its products only in his own zone. E.g. Lahore is divided in to five zones like east, west, south, north and south west. Demographic Segmentation: Age: They have segmented the market from early age infants to 5 years children and have launched different flavors and kinds of Cerelac according to their requirements. On the other hand Nestlé Cerelac has made this product for infants but has actually targeted the mothers who can either be very old or young. Mothers are very conscious about their children health and want the best for them. Income Level: People belonging to lower income groups cannot afford to buy readymade baby foods so Nestlé will target that segment whose income puts them in the upper middle and higher income groups. Social Stratification: Buyers are divided into different groups based on social class and life style. Many consumers live a simple life and belong to lower class; they don’t spend on buying artificial food for their children and people belong to middle class or upper class can definitely opt for this. Psychographic Segmentation:
  • 18. MARKETING REPORT ON NESTLÉ CERELAC 18 Class consciousness: Nestlé has also segmented the specific class of mothers who don’t want to give breast feed to their children so Cerelac is the most preferable and best nourishing food for infants as proxy of chest food. Level of Education: Nestlé makes promotional strategies keeping in view the customer level of education. If the % of education is high in a country then through ads people can be made well aware of their product and can convey their message easily. Promotion and education have a direct relationship. Behavioral Segmentation: Benefits: Buyers are classified according to the benefits they seek. Nestlé Cerelac has launched different flavors and types of Cerelac according to benefits that are required by the children of different stages of early life. Segment needs: Good nutrition is essential for the growth and development that occurs during an infant’s first year of life. When developing infants are fed the appropriate types and amounts of foods, their health is promoted. Positive and supportive feeding attitudes and techniques demonstrated by the caregiver help infants develop healthy attitudes toward foods, themselves, and others. During the first few years of life, the body grows at a very fast rate. The baby weighing on the average about 3 kg. At birth doubles its weight by 6 months. The weight touches 9 kg. By 1 year. Infants and children are very active and they spend a lot of energy. They therefore, need large amounts of body building and energy-giving foods rich in proteins and calories. Segment Growth Potential: Nestle, sees a healthy growth potential for its food products meeting specific dietary needs of changing demands of the consumers that normal diets fail to do. Mr. Patrice Bula, Nestlé’s global sales and marketing head, said, “With the impact of economic growth and changing lifestyles in India, the need for science-based nutrition in products that we consume everyday is going to be almost critical for a good life. We firmly believe that sales and marketing is about responsible engagement with consumers. I have seen some very good
  • 19. MARKETING REPORT ON NESTLÉ CERELAC 19 innovations and renovations in advertising communication, product development and in expanding the distribution network.” Nestlé besides milk and yoghurt, Nestle markets popular products like Maggi noodles, Nescafe and Kit Kat chocolates in world. The company is observing its 100 years more in different countries. Size of the Segment: Infants (0-5), mothers (18-45). Differentiation strategy: Our range is highly hygienic and has excellent strength that prevents the food from dust, moisture and other contaminants, thereby increases shelf life. Further, our range is available in different finishes and at most affordable rates to the clients. 1. Nestlé Cerelac has strong brand image on the basis of quality. 2. Nestlé Cerelac always segments the exact customers. 3. Care pharmacy does not believe that till now any one of Nestlé competitors are successful to compete on the basis of quality. 4. Nestlé Cerelac has positioned among people as health provider brand for infants. Positioning Strategy: We are familiar with the name, Cerelac and not only familiar but consumers too. Whenever some one (parents) thinks about the product in baby food category for their babies, the first and the last name comes in their mind is Cerelac. Why Nestle Cerelac is so popular and authentic brand, the reason is Nestle that communicates itself as 'Good food, good life'. Cerelac is a name of quality and best food for babies and the positioning statement of Cerelac also tells the same as, 'best start to a healthier future' Nestlé does positioning on several bases: 1) On product attributes 2) On needs / benefits 3) On Usage occasion 4) For Classes of users
  • 20. MARKETING REPORT ON NESTLÉ CERELAC 20 5) Against competition 6) Away from competitors Target Market Profile: Geographic dispersion Urban, suburban Family life cycle Full nest, single parents Social Stratification Upper upper class, lower upper class, upper middle class Age segments Infants(0-5), mothers (18-45) Income Average, above average (50 k to 100 k per month)
  • 21. MARKETING REPORT ON NESTLÉ CERELAC 21 MARKETING MIX Product: Sizes It is available in 3 sizes; 350g and 175 g box packaging and a 25g sachet for customer convenience. Shape & Color The shape and color are very attractive for the customers. Labeling and packaging The labeling and packaging includes Nestlé brand and logo. The packaging includes an expiry date and time along with manufacturing date. Second part of labeling includes the quantity of product in grams along with ingredients and contents. Competitive Advantage It is the only popular and quality baby food in Pakistan. Its unique `stay fresh seal and a long lasting shelf life gives the brand a formidable competitive advantage. Not only it is easy to make but also it is completely made considering the digest system and requirement for infants on different stages of age. The factors that make Cerelac successful is quality and superior nutritional value. Price: Nestle Cerelac Nestle Cerelac Nestle Nestle Cerelac strawberry & banana wheat banana apple Cerelac Price $ 2.75 Price $ 2.75 Price $ 2.75 Price $ 2.75
  • 22. MARKETING REPORT ON NESTLÉ CERELAC 22 Nestle Cerelac Nestle Cerelac 3 Nestle orange & honey fruit apple Cerelac Price $ 2.75 Price $ 2.75 Price $ 2.75 Promotion: Nestle has adopted the channels for promotion through TV, News papers, magazines Doctors and hoardings etc. •Advertisement budget of the company Nestle has preplanned to start the financial year but it is kept secret by the company. •Share of promotion Share of promotion in over all projects varies every year. Usually it is 40% of the product. •Nature of marketing The product is marketed aggressively in the market. Placement: Outlets for Product Located Nestlé Cerelac is available all over in Pakistan regardless of big and small cities. Direct Sales It is not sold directly to the customers because of the extensive consumer groups. It is the reason they sale the product through distributers for easiness of the company.
  • 23. MARKETING REPORT ON NESTLÉ CERELAC 23 Warehousing Facilities Nestlé Cerelac has its own warehouses for the storage of products as well as it also has hired some warehouses. Transportation Modes Usually Nestlé mode of transportation is road which is also used for Cerelac.
  • 24. MARKETING REPORT ON NESTLÉ CERELAC 24 CUSTOMER RELATIONSHIP MANAGEMENT (CRM) Nestle is the world's leading Nutrition, Health and Wellness company. The Company's priority is to bring the best and most relevant products to people, wherever they are, whatever their needs, throughout their lives. Nestlé follows the trend with various marketing program to continuously improve and provide nutritious products for a better customer service. Nestlé’s Customer Relationship Management (CRM) is a complicated system which mostly and helpfully supports for marketing campaigns. It contains more than 450,000 data of households, and has recently been upgraded to the second version. Data migrating is a tiring and complex work. Sector Nutrition, health and wellness company Customer Relationship Management (Tele-survey and database Services management) Call Center with data entry operators, conducting tele-survey service and Size updating database of households per year. Contacting moms with babies under 5.5 months-old to survey their household's income, expense and nutrition incline, classify them to different segmentations and invite them to participate in Nestlé’s marketing program. Contacting moms with babies of 7 months-old to survey moms' behavior in infant cereal category. Requirement Contacting moms with babies of 14 moths-old to survey moms' behavior in growing-up milk category Manage and maintain Nestlé’s CRM system. Exporting forms for field-work. Solution Due to the large amount of data, it sets up a systematic process to make sure all new data has to be profiled and present in Nestlé’s CRM in a proper time manner. • ACD report is used to manage agent's productivity and track agent's recording for quality control • Setting up Quality Assurance process to prevent mistakes happening during data input. • Issuing statistic reports in order to oversee how effective the working process for further progress and improvement. • Tightly scheduling tele-work to assure households to be contacted
  • 25. MARKETING REPORT ON NESTLÉ CERELAC 25 on-time. After 2 years of corporation, CRM has helped Nestle to clean up, verify and segment a very rich database of Nestle potential customers for appropriate marketing programs. Benefits With ongoing surveys to their customers & potential customers, Nestle can measure how effective their marketing programs on different groups of customer, how much improvement in brand recognition, in product consumption, etc so as to adjust their marketing programs to be more efficient in the following years.
  • 26. MARKETING REPORT ON NESTLÉ CERELAC 26 CONCLUSION Nestle is today the world’s largest food and beverage company with its mission to provide healthier lifestyle. It has launched many products in baby food line in Pakistan the majority of which are popular and among the market leaders. Nestle is installing new plants and importing latest technologies to improve. Moreover, innovation is one of its greatest strengths so it has a bright future in Pakistan. Nestle must state in writing that it accepts that the international code and the subsequent relevant World Health Assembly Resolutions are minimum requirements for every country. Nestle must state in writing that it will make required changes to bring its Baby Food Marketing policy and practice into line with International Code and Resolutions. BIBLOGRAPHY
  • 27. MARKETING REPORT ON NESTLÉ CERELAC 27 www.nestle.com wikipedia.org/wiki/Nestlé www.foodanddrinkeurope.com www.foodnavigator.com www.Google.com www.shareinfoline.com www.Ask.comsharekhan-firststep.com http://www.nestle-ea.com/en/aboutus/OurMarkets/DRC/Pages http://www.scribd.com/doc/29582425/Nestle http://www.docstoc.com/docs/62851114/nestle http://www.oppapers.com/subjects/nestle-cerelac-page1.html http://www.oppapers.com/subjects/cerelac-page2.html http://www.nestle.com/Brands/Pages/Brands http://www.scribd.com/doc/36009148/Marketing http://www.docstoc.com/docs/77088176/Nestle-Training http://shortcaketales.blogspot.com/2011/02/makan-time.html http://answers.yahoo.com/question/index www.liveperson.com http://www.biltongstmarcus.co.uk/nestle-cerelac-stage-1---banana-3029-p.asp http://www.biltongstmarcus.co.uk/nestle http://www.nestlebaby.com/sg/baby_nutrition/products