Nestle is a multinational food and beverage company founded in 1866 with headquarters in Switzerland. It operates globally including in Pakistan where it has 5 production facilities. Nestle's vision is to be the leading health and wellness company. The document discusses Nestle's marketing strategies in Pakistan, focusing on its popular Maggi product. It covers segmentation targeting middle and upper classes. It also discusses the 4Ps of marketing - product details on Maggi, pricing objectives to match market rates, nationwide placement, and promotional activities like TV ads.

1. Contents
Topics------------------------------------------------------------------------------page#
Introduction……………………………………………….……………………01
Nestle history…………………………………………………………………..01
Nestle in Pakistan………………………………………………………......01
Vision……………………………………………………………………………….01
Mission…………………………………………………………………………….02
Market segmentation……………………………………………………..02
Target market………………………………………………………………….04
Product positioning………………………………………………………...04
4 p’s of marketing…………………………………………………..05
Product………………………………………………………………………………06
• Introduction of maggi…………………………………………………………….06
• Characteristics of product………………………………………………………06
• Classification of product……………………………………………….….........07
• Product life cycle……………………………………………………………….08
• Product mix……………………………………………………………………..09
• Brand……………………………………………………………………………10
• Classification of brand…………………………………………………………..10
• Characteristics of brand………………………………………………………….10
• Types of brand…………………………………………………………………...11
• Packaging………………………………………………………………………...11
• Labeling………………………………………………………………………..11
• Types of labeling………………………………………………………………….12
Price……………………………………………………………………………….13
• Pricing objectives………………………………………………………………13
• Pricing method………………………………………………………………….13
• Market entry strategy…………………………………………………….. 13
• Discount and allowances……………………………………………………..…13
Place……………………………………………………………………………….….14
• Channel of distribution…………………………………………………………14
• Outlet location………………………………………………………………….14
Promotion……………………………………………………………………….…..15
• Advertisement……………………………………………………………………15
• Customer relation………………………………………….………....................15
Conclusion……………………………………………………………….16
References…………………………………………………………

2. INTRODUCTION
Nestle History:
Nestlé with headquarters in Vevey, Switzerland was founded in 1866 by Henri Nestlé
and is today the world's biggest food and beverage company. We employ around
247,000 people and have factories or operations in almost every country in the
world.
Nestle In Pakistan:
Nestle Pakistan is a subsidiary of nestle S.A a company
of Swiss origin. It is a food processing company, registered on the Karachi and
Lahore stock exchanges. For 5 years in a row, the company has won a place among
the top 25 companies of the Karachi stock exchange.
Headquartered in Lahore{Nestlé Consumer Services 308 Upper Mall P. O. Box 874
Lahore, Pakistan Phone: (042) 111-Nestle (637853)} the company operates 5
production facilities. Two of its factories in Sheikhupura and Kabirwala are multi
products factories. One factory in Islamabad and 2 in Karachi produce bottled water.
Through its effective marketing and vast sales and distribution network throughout
the country, it ensures that its products are made available to consumers whenever,
wherever and however.
Vision
The Nestlé global vision is to be the leading health, wellness, and nutrition company
in the world. Nestlé Pakistan subscribes fully to this vision

3. MISSION
“AT NESTLE, WE BELIEVE THAT RESEARCH CAN HELP US MAKE BETTER
FOOD SO THAT PEOPLE LIVE A BETTER LIFE.”
Market Segmentation
Market segmentation is process of dividing the market into different groups
according to their needs, behavior and characteristics.
Following are the basis of segmentation.
I. Geographic
Dividing the market into different geographical units such as nations, state
regions, counties, cities or neighborhoods. Maggi operates globally.
II. Demographic
Dividing the market into groups based on age, gender, family size,
family life cycles, income, occupation, education, religion, and race.
Factors
• Age
• Gender Male and Female
• Family Size
• Education Primary, High School, Secondary, College, Universities.
• Income

4. • Occupation
a. Age
They focus on both groups: males and females, however they are aware that
children and teenagers drink more than elders do so are a bit more inclined to the
children and teenagers.
b. Income
Maggi caters to all income groups. Since the launch of their sachets they have made
Maggi possible in the hands of everyone.
c. Occupation
Youngsters such as children, teenagers and sport mans are the main group of
people who comprise drinking Maggi heavily.
III. Psychographic
Dividing a market into different groups based on social class, life style or
personality characteristics.
Factors
• Personality
• Life Style
• Value
• Attitude

5. Target Market
At nestle we believe that the lower class can’t afford the products of nestle because
of their low income and the comparatively high prices. So the products of nestle are
not offered to the lower class but it is offered to the middle and upper class.
The upper and middle class can afford the products of nestle because the prices of
nestle products are within the rage of their approach.
Product positioning
Product positioning is all about positioning of the product in the minds of consumers.
Nestle used heavy advertising to do this. Also the name of nestle was enough for the
consumers to understand the quality of the product.

6. 4p’s of Marketing
1. ………………PRODUCT
2. ………………..PRICE
3. …………………PLACE
4. …………………..PROMOTION

7. (1.) PRODUCT
Introduction to Maggi:
Maggi is a milk beverage with chocolate and malt, produced by Nestlé and
originating from Australia. It was developed by Thomas Mayne in 1934.
Maggi is also manufactured in other countries, including Malaysia (accounting for
90% of worldwide consumption of Maggi , Singapore, China, Thailand, Indonesia,
Philippines,. The name derives from the famous Greek athlete Maggi of Crotona,
after his legendary strength.
Maggi is a tangible product of nestle
Characteristics of product (Maggi)
• quality:
The quality of nestle Maggi is better as compared to competitors products in
market
• name:
This product carry’s an attractive name. Its name is a sign of great strength as
it is derived from the name of a Greek athlete Maggin, Who was a symbol of great
strength
• Design:

8. The design varies from country to country for Maggi. But indeed it is an
attractive design that is applied to Maggi.
• Variety:
Maggi is available in 2 types. Firstly it is available in ready to drink form.
Secondly it is available in powder form.
Classification of products
Consumer goods:
: Convenience goods:
Nestle produces consumer goods that a consumer can easily
purchase from any retailer. Nestle Maggi is a good example for this. Other examples
for consumer good by nestle are nestle milk pack, nestle dahi, nestle mineral water
etc.
Nestle Pakistan only manufactures the convenience goods.
Industrial Goods:
Nestle Pakistan doesn’t produce any industrial good because it is a
food company.

9. Product life cycle:

10. Nestle Pakistan’s Product mix
Milk
dairy
&
chille
d
dairy
Bever
aes
Bottle
d
water
Bab
y
foo
d
F
O
O
D
Breakfa
st
cereals
Chocolate
&
confection
ary
Milk pack Nescafe Nestle
pure life
Cerela
c
Maag
i 2
minut
e
noodl
e
Corn flakes Kit Kat
Milk pack
cream
Nesquik
- - -
Koko crunch Kit Kat chunky
Nesvita Nestle
fruita vital - - -
Honey gold
flakes Polo mint
Nestle
desi ghee - - - -
Milo
-
Nido
- - - - - -
Every day
- - - - - -
Nestle
raita

11. - - - - - -
Nestle
creation - - - -
-
-
Nestle
dehi - - - - - -
Nneslac
- - - -
-
-
-
-
Brand
Brand is to identify the specific product and distinguish it from other products
available in the market. The brand for this product consists of a brand name and a
brand mark.
Brand name
The brand name of Maggi is ‘nestles Maggi’
Brand mark
The brand mark of Maggi is as follow:

12. Classification of brand
The brand of this product is a manufacturing brand. Because it is given to it by the
manufacturer (nestle).
Characteristics of brand
Nestle Maggi is an easy to pronounce brand.
It is distinctive or different.
It is adoptable to add to product line.
Types of brand
Family brand name:
It consists the name of manufacturer who produces the
goods. The family brand name of Maggi is ‘nestle’
Individual brand name:
It is the brand name that producer gives to the individual product. The
individual brand name of nestle Maggi is Maggi
Combination brand name:
The combination brand name is a combination of family brand
name and individual brand name. Here the combination name is ‘nestles Maggi’
Packaging

13. Packaging of nestle Maggi provides protection to the product inside it. It is not as
luxuries as it is suppose to be, because the biggest share of Maggi’s sale is captured
by the middle class. Therefore it gives a positive impression.
Maggi is available in different packaging which is sachets, tin packs ready to drink
tetra packs, and poly bags.
Labeling
A label may be the part of product. It gives different type of information about the
product. Like (1) brand label (2) brand label (3) grade label
Types of labeling

14. (2) Price
Pricing objective:
The pricing objective of nestle is ‘status que’.The company set the prices of its
products according to its status in the market.
Pricing method
The method used for pricing the products of nestle is ‘market based method’.
Where the prices are set according to demand and supply of the products. This
method is also applied while charging the price to Maggi.
Market entry strategy
The market entry pricing strategy that was used to introduce the nestle Maggi in
Pakistan was the ‘market skimming pricing strategy’. Because there was no
competitor in the market at the time it was introduced in the market.

15. Discount and allowances
Quantity discount:
It is given to the customers who purchase the products at nestle in
quantity. it is normally given at 2% of the deal.
Trade discount:
It is given to the trade channel members of nestle. It is given at
2% of the deal deducted from the total. As like given to quantity buyers.
(3)Place
the products of nestle are widely available in Pakistan. so we cant say that nestle is
trying to expand its sales area. Its products are available nearly at every retailer
outlet. Therefore the channel of distribution is given as follows:
Channel of distribution
Producer
To
Wholesaler
To
Retailer
To
Consumer
The graphical presentation of this channel is as below.
Producer Wholesaler Retailer Consumer

16. Firstly the product is sold to the wholesaler who further transfers it to the retailer
charging a profit on it. The profit margin for nestle products differ form product to
product. The retailer is the last one in the channel who directly deals with the
consumer.
Outlet location:
The products of nestle are available at every retailer outlet in Pakistan.
So there are no any specific outlets for its products. Its products are convenience
goods so these are sold at the points where a consumer can easily buy them.
(4)Promotion
Promotion is to promote the product through advertisement. Advertisement can be in
many ways. Nestle uses different advertising ways to promote the Maggi.
Advertisement
TV ads:
Nestlé Maggi is being advertised on TV. 2 types of TV adds are on air. Both
have a theme which focuses on children’s energy consumption.
Billboards:
Billboards advertisement for nestle Maggi is very rare. But indeed it is an
effective way to advertise a product.
Radio ads:
Advertisement on radio is also a good way to promote the product.
Nestle is also using this type of advertisement.
Banners & pamphlets:

17. Banners are not used to promote Maggi but pamphlets
are used to make the consumers be award about it.
Customer relation
Nestle is a company that is not directly links to consumer. There are
wholesaler and retailer between it and consumer.
But the company has a customer care department. The complaints that are
treated at the centre were pretty few.
Nestle as its name stands for a sign of quality, does care about its customers
and it has started some projects that relates to customer’s health. Like it has
started an awareness program that was about the children.
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 Pakistan the
majority of which are popular and among the
market leaders. Nestle is installing new plants
and importing latest technologies to improve.

18. Moreover, innovation is one of its greatest
strengths so it has a bright future in Pakistan.
References
1. www.wikipedia.com
2. www.learnmarketing.net
3. www.nestle.com.pk
4. www.docstoc.com
5. www.scribd.com