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Submitted To: Mr. Jawad Saleem

Submitted By: Ali Ashfaq M. Javeed Sardar Moazzam Riaz Muneeb Akram Kashif Ali

TABLE OF CONTENTS

PREAMBLE 3 MARKET 5 MARKET DEMOGAPHICS 5 INDUSTRY ANALYSIS 6 MISSION STATEMENT 6 VISION STATEMENT 7 ORGANIZATION PORTFOLIO 8 NESTLES HISTORY AND INNVATIONS 12 First came infant and milk nutrition 13 CONTRIBUTION TO OTHER SECTOR 15 REGIONAL SALES OFFICES 18 RATIO ANALYSIS is useful essentially for: 19 Competitor Analysis 20 WATER 21 NESTL Pure Life PET Bottles 21 NESTL Pure Life Home & Office Service 21 AVA & FONTALIA 21 NESTL PURE LIFE & BULK WATER 22 SEGMENTATION STRATEGY 22 TARGET MARKET 23 POSITIONING 23 INDUSTRIAL SWOT ANALYSIS 23 SWOT ANALYSIS 24

MARKETING MIX 25 1-PRODUCT 25 PRODUCT TYPE: 26 PRODUCT ATTRIBUTES: 26 BRAND NAME: 26 BRAND POSITIONING: 26 BRAND IMAGE: 26 BRAND EXTENSION: 26 PACKAGING: 26 LABEL: 27 2-PROMOTION: 27 3-PLACE: 28 4-PRICE: 28 STRATEGIES FOR CREATING COMPETITIVE ADVANTAGE 29 DIFFERENTIATION STRATEGY: 29 OVERALL EXCELLENCE STRATEGY: 29 CONSUMER ANALYSIS 30 SUGGESTIONS 31 PREFERENCES 32

PREAMBLE
Praise to be Allah Almighty, the one testing us all at all times and making decisions about what we dont know and cant know. Today it is impossible for a common man to run the business especially in this period of competition. This situation demands energetic, duly qualified experienced business administrators who could meet the challenges of this age of modernization. PAK AIMS produce management specialists fully aware of the ins and outs of the business management, and capable of meeting the challenges of modern business environment.

In this project we discussed how started workings what are the objectives and goals of the organization nestle and what are the products and services offered by the company to its target customers. We made a marketing plan for NESTLE PURE LIFE that how the marketing share of this product can be increased what strategies should use for this purpose. We elaborate all the aspects of the marketing plan in this project.

MARKET
yMarkets may be any of a variety of different systems

yMarkets vary in size, range, geographic scale, location, types and variety of human communities yMarket is any structure that allows buyers and sellers to exchange any type of goods, services and information

yMarket facilitates trade and enables the distribution and allocation of resources in a society yMarkets allow any tradable item to be evaluated and priced

MARKET DEMOGAPHICS
yPopulation: 180,000,000 yGrowth rate: 1.828% yBirth rate: 27.74 births/1,000 population yDeath rate: 8 deaths/1,000 population yNet migration rate: -1.24 migrant(s)/1,000 populations y0-14 years: 40% (male 33,293,428; female 31,434,314) y15-64 years: 56.9% (male 48,214,298; female 46,062,933) y65 years and over: 4.1% (male 3,256,065; female 3,542,522)

INDUSTRY ANALYSIS
yPOPULATION 180000000 yRURAL 116916480 yURBAN 63083520

yPEOPLE WITHOUT WATER 44% yBOTTLE WATER USAGE 9% yPEOPLE WITHOUT BOTTLE WATER 91728000 yTOTAL TARGET MARKET 9072000

MISSION STATEMENT
Nestl is dedicated to providing the best foods to people throughout their day, throughout their lives, throughout the world. With our unique experience of anticipating consumers needs and creating solutions, Nestl contributes to your well-being and enhances your quality of life.

VISION STATEMENT
We envision Nestl to grow in the shortest Possible time into the number one food company in Pakistan with the unique ability to meet the needs of consumers of every age group from infancy to old age, For nutrition and pleasure, through development of a large Variety of food categories of the highest quality We envision the company to develop an extremely

Motivated and professionally trained workforce, which Would drive growth through innovation and renovation We aspire, as a respected corporate citizen, to continue Playing our due role in the social and environmental Sectors of the country

ORGANIZATION PORTFOLIO
ESTABLISHMENT: Nestl was founded in 1866 by Henri Nestl with headquarters in Vevey, Switzerland. It has employed around 250,000 people and has factories or operations in almost every country in the world. COMPANY TYPE: It is one of the world's biggest food and Beverage Companies. BRANDS: Nestle offers a variety of brands of which the most well known are Nescafe, Nestl Kit Kat, Nestl juices and Nestl bottled waters.

Nestls existing products grow through innovation and renovation while maintaining a balance in geographic activities and product lines. The Company's priority is to bring the best and most relevant products to people, wherever they are, whatever their needs, throughout their lives.

BRAND PORTFOLIO
In 1992, Nestl was the first company to dare to launch a mineral water, Valvert. Today Nestl Water is established in 130 countries and markets about 70 different brands. In 1998, for the first time in its history, Nestl associated its name with bottled water Nestl Pure Life. The brand was launched in Pakistan and soon appeared in Brazil, followed by Argentina, Thailand, the Philippines, China, and Mexico in 2000. In 2001, India, Jordan, and Lebanon followed, and in 2002, Egypt, Uzbekistan and the United States. Today the Nestle Pure Life brand is present in 20 countries around the world, across all continents - Asia, Near East, South and North America and Europe. Wherever it is to be found around the world, Nestle PURE LIFE answers some crucial consumer needs, focused on three core pillars: Trust, Quality and Service. Nestle PURE LIFE offers an ideal balance between a healthy supply of minerals and a pleasant, refreshing taste, making it suitable for the whole family. It contains essential minerals such as:
yCalcium: necessary for building strong bones and teeth, yMagnesium: necessary for muscle contraction and transmission of

pulses.

COMPANY FROM FOUNDATION TILL NOW

1866 Company's foundation

1905

Merger between Nestl and Anglo-Swiss Condensed Milk Company

1929

Merger with Peter-Cailler-Kohler Chocolate Suisse's S.A.

1947

Merger with Alimentana S.A. (Maggi)

1971

Merger with Ursina-Franck (Switzerland)

1985

Acquisition of Carnation (USA)

1988

Acquisition of Buitoni-Perugina (Italy)

1988

Acquisition of Rowntree (GB)

1992

Acquisition of Perrier (France)

1995

Nestl acquires Victor Schmidt & Shne, Austria's oldest producer of confectionery, including the famous 'Mozartkugeln'.

1997

Nestl, through the Perrier Vittel Group, expands its mineral water activities with the outright acquisition of San Pellegrino.

1998

Nestl acquires Spillers Petfoods of the UK and strengthens position in the petfood business which began in 1985 with the acquisition of the Carnation Friskies brand.

1999

Divestiture of Findus brand (except in Switzerland and Italy) and parts of Nestl's frozen food business in Europe. Divestiture of Hills Bros, MJB and Chase & Sanborn roast and ground coffee brands (USA).

2000

Acquisition of Power Bar.

NESTLES HISTORY AND INNVATIONS:

The key factor which drove the early history of the enterprise that would become The Nestl Company was Henri Nestl's search for a healthy, economical alternative to breastfeeding for mothers who could not feed their infants at the breast. In the mid-1860s Nestl, a trained pharmacist, began experimenting with various combinations of cow's milk, wheat flour and sugar in an attempt to develop an alternative source of infant nutrition for mothers who were unable to breast feed. His ultimate goal was to help combat the problem of infant mortality due to malnutrition. He called the new product Farine Lacte Henri Nestl. Nestl's first customer was a premature infant who could tolerate neither his mother's milk nor any of the conventional substitutes, and had been given up for lost by local physicians. People quickly recognized the value of the new product, after Nestl's new formula saved the child's life and within a few years, Farine Lacte Nestl was being marketed in much of Europe. Henri Nestl also showed early understanding of the power of branding. He had adopted his own coat of arms as a trademark; in Swiss German, Nestl means 'little nest'. One of his agents suggested that the nest could be exchanged for the white cross of the Swiss flag. His response was firm: "I regret that I cannot allow you to change my nest for a Swiss cross .... I cannot have a different trademark in every country; anyone can make use of a cross, but no-one else may use my coat of arms." Meanwhile, the Anglo-Swiss Condensed Milk Company, founded in 1866 by Americans Charles and George Page, broadened its product line in the mid1870s to include cheese and infant formulas. The Nestl Company, which had been purchased from Henri Nestl by Jules Monnerat in 1874, responded by launching a condensed milk product of its own. The two companies remained fierce competitors until their merger in 1905.

Some other important firsts occurred during those years. In 1875 Vevey resident Daniel Peter figured out how to combine milk and cocoa powder to create milk chocolate. Peter, a friend and neighbor of Henri Nestl, started a company that quickly became the world's leading maker of chocolate and later merged with Nestl.

In 1882 Swiss miller Julius Maggi created a food product utilizing legumes that was quick to prepare and easy to digest. His instant pea and bean soups helped launch Maggi & Company. By the turn of the century, his company was producing not only powdered soups, but bouillon cubes, and sauces and flavorings.

First came infant and milk nutrition

Innovation and an entrepreneurial spirit have been Nestl characteristics from the start. In 1886, while the Page brothers in Cham were building Europes first condensed milk factory, for the Anglo-Swiss Condensed Milk Co., Henri Nestl, in Vevey, was developing his infant cereal Lactous Farina Nestl launched in 1867. The two companies merged in 1905 to become the Nestl & Anglo-Swiss Condensed Milk Co.. The former had developed a successful long-life product from fresh milk, a highly perishable raw material, whilst Henri Nestl had achieved international acclaim due to the remarkable qualities of his invention. Given the highly infant mortality rate, due mainly to the lack of an appropriate breast-milk substitute, his infant cereal respond to a real need. His name and the Nestl symbol (Nestl means little nest in German) were guarantee of the consistent quality of his product, the result of painstaking scientific research. Then came product diversification Contacts with other leading companies that have innovative ideas led to acquisitions and diversifications. The company expanded in 1929 through the acquisition of the,

yCailler

yPeter and yKohler chocolate companies, Followed in 1947 by the Maggi group and its culinary products Thus Nestl became the heir to inventions such as Daniel Peters milk chocolate (1875) and Julius Maggis vegetable-based soups (1884) and stock cubes (1908). Nestl accumulated knowledge, as well as the perseverance and competence of scientists like Max Morenthaler, made possible the huge success of the Nescafe launch in 1938. Subsequent acquisitions opened doors to new areas, such as Preserves (Crosse & Blackwell 1960), Frozen foods (Findus, 1962), Mineral water (Vittel, 1969) Pet care (Carnation, 1985). Others reinforced the companys position in established areas, for example, Italian cuisine (Buitoni, 1988), Chocolate and confectionery (Rowntree, 1988) Performance foods (PowerBar, 2000). At the same time, reseat at Nestl resulted in the development of new products such as Milo (1934), Nestea (1944), Nesquick (1948), NAN (1962), Yes (1979),

Nespresso (1986), LC (1994) and Nestl Pure Life (1998). Existing products such as Nescafe, Maggi culinary products or the various dairy products have been constantly improved and adapted to current consumer life-styles. Today and tomorrow a company that cares about consumers al around the globe

Today, Nestl is the worlds leading food company. Its international R&D network supports the products made in 479 factories in 81 countries. Being a company dedicated from the start to food, Nestl remains sensitive to culinary and eating habits, and responds to specific nutritional problems, whilst also setting and matching new trends such as growing out-of-home consumption.

CONTRIBUTION TO OTHER SECTOR

Social

In the social sector, the company has created over 1200 permanent job opportunities for the skilled, unskilled and professional manpower, apart from hundreds of contractual jobs. It has also played a remarkable role in expansion and vitalization of the dairy and livestock sector. Environment Another key area where the company is proud to make a contribution in the environment is by making available the processed and packaged dairy.

308 Upper Mall, Lahore

Registered & Corporate Office

PABX : (042) 5757082-95 Fax : (042) 5711820

Sheikhupura
29th Kilometer, Lahore- Sheikhupura Road Sheikhupura, Punjab, Pakistan
Kabirwala

Factories
Khanewal Kabirwala Road, Kabirwala

District Khanewal, Punjab, Pakistan

Phone : (06512) 411433-36

Fax : (06512) 411432

Auditors

A.F. Ferguson & Co. (Chartered Accountants)

Legal Advisors

Cheema & Ibrahim (Advocates)

ABN AMRO Bank

Bank of Tokyo-Mitsubishi Ltd.

Citibank N.A

Credit Agricole Indousuez

Bankers
Deutsche Bank A.G. Habib Bank Ltd.

Muslim Commercial Bank Ltd.

Standard Chartered Bank.

REGIONAL SALES OFFICES

F-77/1, Block 7, Clifton, KDA Scheme 5, Karachi, Sind, Pakistan. Phone : (021) 5833935-6 Fax : (021) 5833937 178, Block C, Unit 2 Latifabad, Hyderabad, Sind, Pakistan.

Karachi

Hyderabad

Phone : (0221) 860403 Fax : (0221) 863202 29-b, Main Gulberg, Lahore, Punjab, Pakistan

Lahore

Phone : (042) 5754335-6, 5752582 Fax : (042) 5761491

Surij Miani Road, Chungi No. 1, Multan, Punjab, Pakistan.

Multan

Phone : (061) 515061 Fax : (061) 515057 Al Haq Plaza, 271-A, Small D Ground, Peoples Colony Faisalabad, Punjab, Pakistan Phone : (041) 546993, 734538 Fax : (041) 543538 23, D.C. Road. Gujranwala, Punjab, Pakistan.

Faisalabad

Gujranwala

Phone : (0431) 256320 Fax : (0431) 256320 201, Block B, 2nd Floor City Tower, Jamrud Road, Peshawar, N.W.F.P, Pakistan Phone : (091) 840859, 842415, 43901 Fax : (091) 45516 63 B D, Chaman Housing Scheme, Opposite Askari Park Quetta, Baluchistan, Pakistan. Phone : (081) 834887 Fax : (081) 822297

Peshawar

Quetta

74-W, Yaseen Plaza, 1st Floor, Blue Area,

Islamabad, Pakistan

Islamabad

Phone : (051) 2271874-5, 2824328 Fax : (051) 2821899

RATIO ANALYSIS is useful essentially for:

Investors
Assessment of earnings and dividend prospects. Growth in economic value of investments with respect to the risks undertaken.

Bankers/Creditors concern
Assessment of the ability of the business to service its debt obligations. Debt coverage. Proper utilization of assets financed.

Government's concern
Evaluation of the economic contributions of the business entity. Determination of the entity's financial strength to carry social and developmental programs.

THE ANALYSIS
The financial ratios discussed here are those which are derived simply and directly from financial statements. These ratios are used in analyzing the financial statements in ordinary course of business activity. The ratio analysis can be divided into three broad categories: The Solvency Ratios. The Efficiency Ratios.

The Profitability Ratios.

Competitor Analysis

NESTLE Aquafina Sufi Kinley Other

TOTAL SHARE 9072000 TOTAL SHARE OF COMPETITORS

NESTLE 2903040 AQUAFINA 1995849 SUFI 453600

 KINLEY 1451520 OTHER 2268000

WATER

NESTL Pure Life PET Bottles

The year 2001 saw the successful completion of three years of outstanding business for NESTL Pure Life PET Bottles of 0.5 and 1.5 liters. The exceptional brand success was the result of expanding national distribution and an increasingly loyal customer base. The brand has revolutionized the Pakistani market by tapping the real consumer need for pure, healthy, and safe water and has successfully dominated a key strategic business

NESTL Pure Life Home & Office Service

In 2000, NESTL Pure Life established a successful Home and Office (H&O) delivery service in Lahore, which has substantially grown ever since and has come to dominate the 5- gallon market. Successful marketing and sales strategies offer greater convenience and better value to the consumers. The brand is poised for strong growth in future.

AVA & FONTALIA

To expand its H&O water delivery business countrywide, Nestl acquired major share holdings in both these businesses in 2001. While AVA is an important national player in the branded bottled water category, both in PET and H&O services

NESTL PURE LIFE & BULK WATER

The launch of Nestl Pure life in December 1998 was a truly historic event. This marks Nestl Milkpak's entry into the country's fastest growing water market. At the same time Pakistan became the first country where Nestl launched this new worldwide brand. It has been launched in 11 markets internationally with its lead and best performing market being in Pakistan. The reporting of Nestl Pure life is not directly under the Nestl headquarters at Vevey, Switzerland. Rather all the water brands at Nestl have to report to Perrier Vittel, the pioneer and lead French Brand in the water market. Other than that, all the research concerning the contents is carried out at the Research Center at Vevey.

SEGMENTATION STRATEGY Psychographic Segmentation Demographic Segmentation Geographic Segmentation Behavioral segmentation

TARGET MARKET
Targeting Strategy Of Nestle Pure Life Is Differentiated Marketing Nestle Pure Life Targets Both Genders Targets The Upper And Middle Class People Who Are Health Conscious Tourists Are Also The Target Market Of Nestle Pure Life

POSITIONING

 Newly Drinking Water With Safety And Security Pure Water Pure Relationship Safe And Healthy Drinking Water Public Awareness Message

INDUSTRIAL SWOT ANALYSIS Strengths

the lifestyle of the people is changing DEMAND is increasing day by day in the bottle Water

Weaknesses
the lack of awareness and the poverty the lack of availability in the remote areas is also the strong reason

Opportunities
people are becoming more health conscious

Threats
Low Entry Barrier Economical Uncertainty

SWOT ANALYSIS
Strengths: High Quality Obtained By The Usage Of A Special Production Process.

 Own Industrial Laboratories That Perform Constant Control For Physical-chemical And Bacteriological Parameters. Daily Sensor Water Analysis for Flavor, Color And Odor. Great And Neutral Taste Which Suits All The Family Safety And Purity From The Source To The Consumer Produced Locally, Close To The Consumer. Weakness: Nestle Pure Life Is Relatively Expensive Than Other Brands. Opportunities: Water Is An Essential Part Of Life And Everyone Prefers To Drink Safe And Healthy Water. Nestle Is A Trusted Brand For Providing Good Quality Products. Threats: Tough Competition From Aquafina And Kinley.

MARKETING MIX
1-PRODUCT:
Nestl Pure Life is drinking water that has been treated and rematerialized using a standardized industrial process to ensure purity and quality. Pure and Safe Nestle PURE LIFE refills your body with water to maintain a good level of hydration. It provides a balanced mineral formula (on average 150-170 mg per liter), contributing to daily mineral requirements.

Structure of water

Mineral Component

Concentration, not more

General mineralization (mg/l) Calcium Magnesium Potassium Bicarbonates Fluorides Hardness

220 mg/l 40 mg/l 15 mg/l 20 mg/l 60 mg/l 0,6 mg/l Mg-eq/l 3

PRODUCT TYPE:
It is a consumer product and a convenience good.

PRODUCT ATTRIBUTES:
Nestle Pure Life is a pure, safe and healthy, colorless and odorless drinking water with a pleasant taste.

BRAND NAME:
Nestle Pure Life.

BRAND POSITIONING:
Premium drinking water

BRAND IMAGE:
Safe and healthy water

BRAND EXTENSION:
Nestle is soon introducing flavored water in lemon, orange, raspberry and strawberry flavors.

PACKAGING:
Nestl PURE LIFE is available in a wide variety of packaging formats to suit all consumer needs and consumption occasions. Packaging is innovative to meet the individual needs of consumer all over the world.

The range of formats extends from the individual bottle for on-the-go consumption (0.33l to 0.5l), to the family size bottle (1.5l) and on to larger formats of 5 gallons (18.9l) for in-home and office usage. Nestle PURE LIFE 18.9-liter bottles have a protective cover, so that the consumer can immediately define, that the product was delivered from the factory. Its proprietary design equally protects the brand from counterfeiting. Nestl Pure Lifes originality lay in the use of an all-new plastic, P.E.T. (polyethylene teraphthalate), which is stronger and more elastic than the PVC. Besides, P.E.T. is recyclable. Nestl PURE LIFE is bottled when possible in the country, or at least in the region where it is sold, combining the benefit of a local production and the strength of a worldwide brand.

LABEL:
The label provides information like quantity, mineral contents, logo, manufacturing date and best before date. Consumer service number is mentioned and stamp of PSQCA with license number is also mentioned.

2-PROMOTION:
Nestle Waters Coolers has been a part of Nestle Waters since 2003 and represents Nestle Pure Life brand. Service quality has always been the main driver of HOD business. They are using television and radio advertisements in electronic media. In print media they are using billboards, newspapers, pole signs and posters. In big departmental store they have display corner in which Nestle Pure Life is refrigerated. Moppies are also used for advertisement in these stores. In summers direct marketing is used for promotion by providing cool points of Nestle Pure Life where chilled Nestle Pure Life is available for instant drinking.

3-PLACE:
Nestle Pure Life is a convenience good and is frequently used therefore it has been placed on all big and small stores to make it available everywhere. The type of placement used for nestle pure life is spot exchange.

4-PRICE:
Nestle pure life is following brand pricing through which it provides functional and psychological satisfaction to its target customer. The pricing strategy of Nestle Pure Life is market skimming. Prices of Nestle Pure Life are relatively higher than their competitors. Market prices of individual consumables (0.33l to 0.5l) are Rs.10 and Rs.13. The price of family size bottle (1.5l) is Rs.24 and of large bottles of 5 gallons (18.9l) is Rs.130

PRICE

PRODUCT

PROMOTION

PLACE

MARKETING MIX

STRATEGIES FOR CREATING COMPETITIVE ADVANTAGE

DIFFERENTIATION STRATEGY:
They have developed a very visible image of their water that it is safe and healthy and is PURE LIFE in true sense.

OVERALL EXCELLENCE STRATEGY:

Nestle is a trusted brand and its products are consider to best and of very high quality world wide. This is a very important competitive advantage of Nestle Pure Life.

Introduction Characteristics Customers Competition Sales Innovators Little if any Low levels, then

Growth

Maturity

Decline

Mass Market Increasing Rapid

Mass Market Intense Slow/no

Loyal Customers Decreasing Declining

rising

Growth Strong, then at peak

annual growth Declining annually Low/none

Profits Marketing Implications Overall Strategy Costs Product Strategy Pricing Strategy Distribution Strategy Promotion Strategy

None

Market Development High per unit Undifferentiated Most Likely high Scattered Category awareness

Market Penetration Declining Improved items Lower over time Intensive Brand Preference

Defensive Stable or increasing Differentiated Lowest Intensive Brand Loyalty

Efficiency Low Pruned Line Increasing Selective Reinforcement

CONSUMER ANALYSIS
Motivational factors to buy nestle

 When you use bottled water?

yBuy preferences

SUGGESTIONS
They should introduce 0.20l water glass of Nestle Pure Life which should be provide on cool points in summer. They should set the price of their product in accordance with their competitors price. Nestle Pure Life should communicate the benefits of drinking it. Now a day, they are not advertising properly therefore they should focus on more advertisement so that they could create strong brand loyalty among customers.

 They should introduce 0.20l water glass of Nestle Pure Life which should be provide on cool points in summer. They should set the price of their product in accordance with their competitors price. Nestle Pure Life should communicate the benefits of drinking it. Now a day, they are not advertising properly therefore they should focus on more advertisement so that they could create strong brand loyalty among customers.

PREFERENCES
yMuhammad Adeel Aman Khan, Sales Manager Nestle ywww.nestle.com yEconomy survey of Pakistan 2008 ywww.Google.com

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