TABLE OF CONTENTS

OBJECTIVES OF STUDY:
The objectives of marketing mix is to give you the tools you need for establishing your detailed marketing plan and forecasting your sales. it involves following 8 steps.

1. Challenge 2. Product 3. Place 4. Price 5. Promotion 6. Sales strategy 7. Do it yourself 8. Coaching

1-CHALLENGE
You have gotten a rough idea about the market situation and the possible positioning of your product. Of course, it's far to be sufficient. Now, you must write your detailed planning. It means that brainstorming is ended and that you have to go to the specifics in examining and checking all the hypothesis you had made in the preceding chapters. You will use the marketing mix.

2-PRODUCT
A good product makes its marketing by itself because it gives benefits to the customer. We can expect that you have right now a clear idea about the benefits your product can offer. Suppose now that the competitors products offer the same benefits, same quality, same price. You have then to differentiate your product with design, features, packaging, services, warranties, return and so on.

3-PLACE-DISTRIBUTION
A crucial decision in any marketing mix is to correctly identify the distribution channels. The question " how to reach the customer" must always be in your mind. -Definition: The place is where you can expect to find your customer and consequently, where the sale is realized. Knowing this place, you have to look for a distribution channel in order to reach your customer. In fact, instead of "place" it would be better to use the word "distribution" but the MBA lingo uses "place" to memorize the 4 Ps of the marketing mix!

4-PRICE
Price means the pricing strategy you will use. You have already fixed, as an hypothesis a customer price fitted to your customer profile but you will have now to bargain it with the wholesalers and retailers. Do not be foolish: They know better the market than you and you have to listen their advices

5-PROMOTION
Advertising, public relations and so on are included in promotion and consequently in the 4Ps. Sometimes, packaging becomes a fifth P. As promotion is closely linked to the sales, I will mention here the most common features about the sale strategy. -Definition: The function of promotion is to affect the customer behavior in order to close a sale.

6-SALES STRATEGY
Sales bring in the money. Salesmen are directly exposed to the pressure of finding prospects, making deals, beating competition and bringing money

7-DO IT YOURSELF:
1-You have to describe for your own biz:
Your distribution channel. Picture it with diagrams. -Your pricing strategy. Indicate the price you will choose. Indicate at each level the margins and the impact regarding you product image. As a potential customer, ask information's to your future competitors! -Your advertising program and evaluate your budget for promotion: Collect some estimates from newspapers, Radio and so on. -Your sale force: How do you pay them (straight commission : which percentage of the price)? Look for your first salesmen. Establish contacts. -Your projected sales for the twelve months of the first running period and then for the four next years.

2-Estimate the costs of the marketing function:

Take the model of your grid cost drawn up Distinguish the starting and the running period Distinguish advertisement costs and sales force costs. About advertisement: You put the cost of your launching advertisement program in the starting costs. If you envision to advertise on the long run, estimate a yearly budget and post it in the running costs. About the sales force: I expect that you will not recruit salesmen during the starting period just for admiring the implementation of the business! Consequently, the sales force costs must mainly appear at the beginning of the running period. You have to estimate the human costs of the sales force: numbers, qualification, salary, commissions and the consumable costs such as transportation, travels, phones, hostels. Finally, value the equipment costs: vehicles and so on.

3-Insert in your business plan

Open your Plan ware folders and insert these elements in the adequate chapters. Modify your first sketch according to these results: your forecasted sales are a core element! Right now, You can estimate the ordered quantity for a given price as well as the required quality, customers service, and so on. Being aware of the demand, you can specify the following points: - How to improve the product - How big must be the production : technology. Investment analysis. - choice and cost of the required staff

INTRODUCTION
The term "marketing mix" was coined in 1953 by Neil Borden in his American Marketing Association presidential address. However, this was actually a reformulation of an earlier idea by his associate, James Culliton, who in 1948 described the role of the marketing manager as a "mixer of ingredients", who sometimes follows recipes prepared by others, sometimes prepares his own recipe as he goes along, sometimes adapts a recipe from immediately available ingredients, and at other times invents new ingredients no one else has tried.[1] A prominent marketer, E. Jerome McCarthy, proposed a Four P classification in 1960, which has seen wide use. The Four P's concept is explained in most marketing textbooks and classes.

Elements of the marketing mix:

Elements of the marketing mix are often referred to as the "Four P's": Product - It is not a tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products are service based like the tourism industry & the hotel industry or codes-based products like cellphone load and credits. Typical examples of a mass produced tangible object are the motor car and the disposable razor. A less obvious but ubiquitous mass produced service is a computer operating system. Packaging also needs to be taken into consideration. Every product is subject to a life-cycle including a growth phase followed by an eventual period of decline as the product approaches market saturation. To retain its competitiveness in the market, product differentiation is required and is one of the strategies to differentiate a product from its competitors. Price The price is the amount a customer pays for the product. The business may increase or decrease the price of product if other stores have the same product. Place Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet. Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements: advertising, public relations, personal selling and sales promotion. A certain amount of crossover occurs when promotion uses the four principal elements together, which is common in film promotion. Advertising covers any communication that is paid for, from cinema commercials, radio and Internet adverts through print media and billboards. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and Public Relations (see Product above). Any organization, before introducing its products or services into the market; conducts a market survey. The sequence of all 'P's as above is very much important in every stage of product life cycle Introduction, Growth, Maturity and Decline.

SCOPE
Marketing is a philosophy that leads to the process by groups and individuals obtain what they need and want by identifying value, which organizations,

Explanation
Elements of the marketing mix are often referred to as 'the four Ps': PRODUCTS PRICE PROMOTION PRODUCTS VARIETY LIST PRICE SALES PROMOTION QUALITY DISCOUNT ADVERTISING DESIGN ALLOWANCES SALES FORCE FEATURES PAYMENT PERIOD PUBLIC RELATION BRAND NAMES CREDIT TERMS DIRECT MARKETING PACKAGING SIZE SERVICES WARRANTIES RETURN Product In simpler terms, product includes all features and combination of goods and related services that a company offers to its customers. So the Airbusproduct includes its body parts such as the engine, nut bolts, seats, etc along with its after-sales services and all are included in the product development strategy of the Airbus. However, a serious criticism can be raised here in terms of how marketing mix analysis will cater for companies such as ABN Amro Bank, Natwest Bank, British Airways and Fedex Corporation as they don't possess tangible products. It was argued that is it feasible to omit service-oriented companies with the logic that the term "services" does not start with a "P", however, it was asserted that these companies can use the terminology of "service products" under marketing mix strategy making (Kotler & Armstrong, 2004). Lazer (1971) argued that product is the most important aspect of marketing mix for two main reasons. First, for manufacturers, products are the market expression of the company's productive capabilities and determine its ability to link with consumers. So product policy and strategy are of prime importance to an enterprise, and product decisions dictate the scope and direction of company activity. Moreover, the market indicators such as profits, sales, image, market share, reputation and stature are also dependent on them. Secondly, it is imperative to realise that the product of any organisation is both a component and a determinant of the marketing mix as it has a great influence on the other elements of the mix: advertising, personal selling, channels of distribution, physical distribution and pricing. So without proper product policy, a company can not pursue for further elements of marketing mix. Price: Pricing is basically setting a specific price for a product or service offered. In a simplistic way, Kotler and Armstrong (2004) refer to the concept of price as the amount of money that customers have to pay to obtain the product. Setting a price is not something simple. Normally it has been taken as a general law that a low price will attract more customers. PLACES CHANNELS ASSORTMENT LOCATION INVENTORY TRANSPORT

It is not a valid argument as customers do not respond to price alone; they respond to value so a lower price does not necessarily mean expanded sales if the product is not fulfilling the expectation of the customers (Lazer, 1971). Generally pricing strategy under marketing mix analysis is divided into two parts: price determination and price administration (ibid).

Price determination is referred to as the processes and activities employed to arrive at a price for a product including consideration of relative prices of products within the same line, and differences in price for similar products of differing grades and qualities. Price administration is referred to as the activities involved in fitting basic prices to particular sales situations such as geographic locale, functions performed by customers, position of distribution channel members, or special sales situations. An example of this is special discounted prices at, for instance, GAP, NEXT etc or Coca Cola and Pepsi where different prices are set in different geographical areas considering the difference in patterns of usage as well as varying advertisement costs. Place: Placement under marketing mix involves all company activities that make the product available to the targeted customer (Kotler and Armstrong, 2004). Based on various factors such as sales, communications and contractual considerations, various ways of making products available to customers can be used (Lazer, 1971).

Companies such as Ford, Ferrari, Toyota, and Nissan use specific dealers to make their products available, whereas companies such as Nestle involve a whole chain of wholesaler retailers to reach its customers. On a general note, while planning placement strategy under marketing mix analysis, companies consider six different channel decisions including choosing between direct access to customers or involving middlemen, choosing single or multiple channels of distributions, the length of the distribution channel, the types of intermediaries, the numbers of distributors, and which intermediary to use based on the quality and reputation (Proctor, 2000) Promotion Promotional strategies include all means through which a company communicates the benefits and values of its products and persuades targeted customers to buy them (Kotler and Armstrong, 2004). The best way to understand promotion is through the concept of the marketing communication process. Promotion is the company strategy to cater for the marketing communication process that requires interaction between two or more people or groups, encompassing senders, messages, media and receivers (Lazer, 1971). Taking the example of Nokia, the sender of the communication in this case is Nokia, the advertising agency, or both; the media used in the process can be salesmen, newspapers, magazines, radio, billboards, television and the like. The actual message is the advertisement or sales presentation and the destination is the potential consumer or customer, in this case mobile phone users.

Extended Marketing Mix (3 Ps)

More recently, three more Ps have been added to the marketing mix namely People, Process and Physical Evidence. This marketing mix is known as Extended Marketing Mix. People: All people involved with consumption of a service are important. For example workers, management, consumers etc. It also defines the market segmentation, mainly demographic segmentation. It addresses particular class of people for whom the product or service is made available. Process: Procedure, mechanism and flow of activities by which services are used. Also the 'Procedure' how the product will reach the end user. Physical Evidence: The marketing strategy should include effectively communicating their satisfaction to potential customers.

MARKETING MIX OF NESTLE MILKPAK;

History of Nestle
In the 1860s Henri Nestl, a pharmacist, developed a food for babies who were unable to breastfeed. His first success was a premature infant who could not tolerate his mother's milk or any of the usual substitutes. People quickly recognized the value of the new product, after Nestl's new formula saved the child's life, and soon, Farine Lacte Henri Nestl was being sold in much of Europe.

Nestle is the largest food company in the world. It is present in all five continents, has an annual turnover of 74.7 billion Swiss Frances. There are 509 factories are running in 83 countries, having 231,000 employs. Nestle is the world largest food company and nestle Milkpak is Nestls famous UHT milk brand. Nestle Milkpak has south Asias biggest Plant at Kabirwala. It is targeting upper and middle class. It is differentiating its brand by adding Iron and Vitamin C. The Nestle Milkpak is following growth strategy. The immense competition is going in the market; it is recommended that Nestle Milkpak should invest more in milk business and other value added milk products. In this way Nestle Milkpak can fulfill the local demand by locally processed milk and milk products instead of the imported milk products. Nestle has brand recognition throughout the world and they can export milk powder and other value added products in future.

Nestle In Pakistan
Launched in 1981, it has become synonymous with quality milk. Backed by a very strong brand name, aggressive marketing and distribution plans, consistent quality and availability through out the year, Headquarters in Lahore, the company operates five production facilities. Two of its factories in sheikhupura and kabirwala and multi product factories. One factory in Islamabad and two in Karachi produce bottled water. Through its effective marketing and a vast sales and distribution network thought out the country, it ensures that its products are made available to consumers whenever, wherever and however. MARKETING MIX OF NESTLE MILK PACK MILKPAK UHT has been extremely successful. In September 1999, MILKPAK UHT milk was launched as NESTLE MILKPAK UHT MILK it is available in three pack sizes of 1000, 500 and 250 ml. Pure, rich and delicious Nestle Milkpak standardized (UHT) benefits from Nestls expertise in bringing you the best life has to offer and benefits from 140 years of consumers trust. Encourage your family to exercise regularly, eat a healthy, well balanced diet and drink pure, nutritious Milk for good health. Milk is a must drink for your children as it is a rich source of calcium that helps in the growth and development of strong bones and teeth.

A 250ml Nestle Milkpak Glass consist of following things 27-30% of calcium, 15-18% of protein, 31-34% of phosphorous,6-9% of Vitamin A and 160-169 kCal of energy, as recommended dietary allowance by national Academy of Science (USA). Nestle have been serving Pakistani consumers since 1988 when the parent company Switzerland based on Nestle first acquired share in Milkpak. Nestle acquires 40% share in Milkpak. In 1990, Sheikhupura factory started the production of Nido Milk Powder cereals; 1n 1992, Nestle took over the running of company (Kabirwala plant) and began to develop its Milk collection network. In 1996 Milkpak was renamed to Nestle Milkpak Ltd. In 1997, it becomes a fully owned unit of Nestle Pakistan. In 1998, Nestle Milk collection system in Punjab matures and company is able to buy all its Milk from Farmers instead of relying on contractors. In 2005, Nestle Milkpak Ltd. Is renamed again Nestle Pakistan.

NESTLE MILKPAK; PRODUCT Features Nestle has introduced the milk powder which outshined others because of its great taste, refrigeration, ready to drink, less volume, more stable shelf life Quality Over many years companys primary concern has been to improve the quality and volume of milk for UHT processing and other milk based products. The technology is imported and is latest.Nestle has its own diary farms from which we collect milk and we have a special team of veterans who regularly inject animals against epidemic diseases. Target Market The target market of the product is definitely the tea & milk drinkers who have a choice and capacity for the best taste

 Design
It is designed to be used in general but it is popular mostly in offices and cafs for tea purposes.

Packaging And Size

NESTLE MILKPAK UHT MILK is available in three pack sizes of 1000, 500 and 250 ml.the Nestle logo is a must, other than that the product is made available in convenient sizes and attractive colors. The WHITE color is the chief color to depict the color of milk.

Warranty And Return

Nestle never return the paid money back. If the claim is valid then we can replace the products.

PRICE
List Price
The prices are fixed on a reasonable scale so that majority of public can afford. Nestle set prices of its own because Nestle is the trend setter in the Market.

Discout And Allowances

Not to the final consumers but it can be considered for the he organizational consumers like Nestle has given discounts to PIA

PROMOTION
Advertising
Means for advertising are TV, News papers, magazines and doctors.

Sales Force
Nestle doesnt have any sales force , brand ambassador or sponsor

Public Relation
The personal involvement of Nestl people in many projects, together with financial assistance and sharing of know-how with local organizations helps to develop long-term community relations and mutual understanding. They believe that every single company, no matter where in the world it operates, ought to be fully integrated into the local social, cultural & economic life. They must be good corporate citizens, and give back to the societies to which they belong.

 PLACE
Channel
The product is not sold directly to the customers because of the extensive consumer groups

Assortment
Nestles Milkpak readily and easily available throughout the country

Location
Headquarters in Lahore, the company operates five production facilities. Two of its factories in sheikhupura and kabirwala and multi product factories. One factory in Islamabad and two in Karachi produce bottled water. Through its effective marketing and a vast sales and distribution network thought out the country, it ensures that its products are made available to consumers whenever, wherever and however

Inventory
Through its effective marketing and a vast sales and distribution network thought out the country, it ensures that its products are made available to consumers whenever, wherever and however.

Transportation
Most of the product is distributed through roads in the country

CONCLUSION
Marketing mix analysis is a fundamental step towards effective strategy. Where other analysis are more related to environment and feasibility analysis, the 4 Ps of marketing including the product itself, pricing, placement and promotion are the four wheels of the vehicle on which the path of an organisation's marketing success is actually dependent. Nestle is today the worlds 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

BIBLIOGRAPHY;
1) Banting, Peter; Ross, Randolph E.. "SpringerLink - Journal of the Academy of Marketing Science, Volume 1, Number 1". SpringerLink. http://www.springerlink.com/content/mn58860185200184/. Retrieved 2010-1112. 2) Koichi Shimizu (2009) "Advertising Theory and Strategies,"16th edition, Souseisha Book Company. (Japanese)] 3) [Koichi Shimizu (2003)"Symbiotic Marketing Strategy,"4th edition, Souseisha Book Company.(Japanese)] 4) Jerome McCarthy (1975)Basic Marketing: A Managerial Approach," fifth edition, Richard D. Irwin, Inc., p.37.] 5) ^ Don E. Schullz, Stanley I. Tannenbaum, Robert F. Lauterborn(1993)Integrated Marketing Communications,NTC Business Books, a division of NTC Publishing Group. 6) http://kninn.blogspot.com/2010/02/objectives-of-nestle.html 7) http://download-reports.blogspot.com/2010/09/hrm-report-on-nestle.html 8) http://en.wikipedia.org/wiki/Marketing_mix 9) http://www.nos.org/srsec319/319-22.