M arket Situation B oston C ontingency M atrix SM R A A T nalysis M arket Share H ierarchy details of m arketing and sales departm ent M arket Segm entation and T argeting Strategy
C onsum Profiling A er nalysis Product Strategy and FA A B nalysis w Product line ith T Pricing Strategy he M arket D istribution and C hannels Strategy M arket Positioning Strategy
A k o le g m n c n w d e e t
Praise is to Allah Al mighty, the one testing us all at all tim es and to us. It added a lot to life, then it
this report app eared to be a great experience report is one of our m orable em wo uld not be wrong.
while we we re working on this rep ort. If we s ay that this expe rienc es in student
We owe profound gratitude to M adam Saim H a assan creative a b i l i t i e s by wit hout w hose assig ning this attention rep ort to us. and inte rest, obliged to all our fell ow students considerate w ho guided
for us to com plete this report on time. Whatever con vict ion that this lea rning experience of help in our practical
and this project report has put inde lible impression on our mind. It is our will always be a source life and professional caree r.
In d ctio tro u n
Nestle is the Hen ri Nestle. facto ries product leading Nestle FMCG com pany is serving comprising
Of Nestle:
of Switzerland almost all es tablished by 500
worldwide with
in 86 coun tries
Nestl s
best to their custom ers. Hen ri Nestl endow ed nam e. her young, be cam e with the symb ol de rived from his bi rd protec ting of the nest The Nestl logo and a symb ol His family coat of arms, the nest with a mother ca re and attitude to life-long nut rition.
Com pany's
represen ts the nour ish ment, secur ity and se nse of fam ily that are so essential to life. The first product unable could not tolerate made by Henri Nestl, milk a food for babi es who were who to breastfeed. His first succ ess was a prem atu re infant
his m other's
People quickly recog nized the value of the new product, was being sold in m uch of Eu rope. Nestl consum ers since 1988, when the pa rent has been company,
new formula saved the child's life, and soon, Farine Lacte Henri Nestl servi ng Pakistani the Switzerland-
Nestls Vision:
The consum er 's voice working. Whether Karachi, m atters Nestls Nestle is the key to Nestl services team stands our Pakistan's vision and
village or the m ropolis of et ready to listen to your and guidance on and products
conce rns and provide answ ers of health and wellne ss. global vision is to be
leading
fully to this is
global vision. In addit ion to that, N estle Pakistan also envisions a dynamic
proud of its heritage and Meet the nutritional product range that
needs of all age groups through a diversified contains an innovative quality portfolio of branded
Main tain long -te rm growth and deliver shareholder value Es tablishing resp onsible com u nication m us a better w ith the consum er
need to be m ade to our produ cts Strengthen talented the positi on as the best ca reer destination for
Mission Statement:
Nestle is dedicated their day, throughout uni que expe rience solu tions, Nestle quality of life. to prov iding the best their lives, of anti cipating foods to people needs througho ut With our throug hout the world. consum ers'
and creating yo ur
contributes
and en hances
N estle
The launch of Nestle Pure Life in December episode Pakistan brand. highest ideally in the hist ory of Nestle Pakistan. becam e the first get the entry of Pakis tans growing water Nestle Pure Life is a prem ium ba lanced with essential
standa rds of safety and purity as per the w ebsite minerals like vit amins,
sugges ts. It is
obtains
good food and rough creating and exchanging Launched becom e on the North American market to
and values.
the worlds top and most widely brand by 2010. Nestle is also the $1 Pure
willing and has goal to achieve Billion en ter prise by 2014. Nestle
Life is a premium drinking water, pure drinking w ater on suitable as possible. Acco rding to their throug hout the wo rld.
produced
to the highest
Nestle is leading brand in w ter m rket and has left behind a a brands which we re working bef ore the launchi ng of Nestle M ultan, Hyderabad Now it has maxim um m rket sha re in developed a
Pakistan like Lah ore, Karachi, Isla mabad, oth ers. As we have discussed to achieve the set
fully market leader of water m rket in Pakistan, a point of Nestle. product of Nestle Pakistan and most probably product
signs are clearly visible all over the world whe re Group Matrix is m rket a
Nestle Pure Life exist. He re you can see the m rket share chart for the a and after that the re is a Boston Consultancy the ranking of Nestle shown which would describe portfol io of Nestle Pakistan. of current m rket situation a Pure Life in product
share over the growth of industr y. This BCG matrix is the clear pictu re of Nestle Pure Life.
B sto o n
High Ind ustr y Growth Low Indust ry Growth
C n g ny o tin e c
Mar ket Share Hi gh Stars: Nestle Pure Life Ca sh cow s: Coffee (Nesc afe)
M atr ix
M ket Share Low ar Que ion Mark: st Culinary Produ cts D ogs: Chocolate Drinks and Polo
and
data
perti nen t
other
to
th e
ma rkets
they are in
situation:
info rmat ion of the com panies from others w hat so that they can
the m rket so the re is more com pletion in the market and they ha ve to a be up to date from the current situations.
over the long term for shareholders, emp loye es, consum rs, e
in the be havi or, beliefs, in w hich they place would not exist.
Nestl con tinues to maintain its com itm m ent local laws in each of its m rkets. a
SMART A alys is n :
SMART is an acronym com panies S= M= A= R= T= which tells us that when ever we set any
Mar ke Share: t
Nestle is now a days willing to have m re and mo re m rket sha re so o a that it could achieve all over the Pakistan. Nestle Pure Life has 69%of total market, Sparklet have 11% and rem aining 7% re kept by other a by Nestle Karachi 50% of m rket is kept a has 13% and Cool the goals that are set. The goal for market sha re will be disc ussed belo w.Nestle occu pied 85% of drinking water market in
remain ing 25% is kept by other local com panies. conce rn Nestle Pure Life has 65%of market Sha re. They have certain goals and objectives to to create ha ve the products the other
Market Share
to achieve.
They want
create and prom ote the ir products the ir product. for increasing com pete it They their w ith reso urces
Is lam abad
Lahore
and
Karachi
Lahore
Karachi
Is lam abad
companies.
They conduct
resea rches
for that
objective which they have decided. creating custom er Nestl believes safegua rd althou gh guidan ce voluntary highest of to awa renes s. that, as a general responsible areas, in the staff busin ess
They are promoting their product by rule, legislation is the m ost effective
in certain
The Percentage Use of Nestle Pure Life and its Competitors in Islamabad
Others 20% Sparkle 30%
principles
to ensu re that
of the fact that the is a reflection of right of the professionalism , and and ongoing conduct emp loye es. training and
succ ess of a corpo ration and the resp onsible Therefore recruitm ent
attitude of the
Mar keting Plan For Nestle Pure Life Water Pakistan U niversity Of Man ag em ent and Technology
Page 10 of 3 0
a d n
Mar ketin Manager g and con trolling its m nager a M anager m rket. a Fin an ce m anager con tingent claims.
activities
of the
The field of financ e cov ers the econom ics Financial econom ists study the valuation
of these
claim s, by
the
m rkets a
in
which and
they the
and
their
use
corpo rations,
society
manager m eet
related It manager
targets.
important
C n m o su er
Profile
Anal ys is
Mar ket S egm en tio n: ta For getting the m inds the m aximum market share and respect of the consu mer, of the product in as per our observation and market
G eogra phic S egm en ta on: ti The each south. com pany provincial has di vided capital, its ge ographic segm entation in se veral and from east, west, regions. First they have the segmentati on of a whole country they divided its areas into north, So that it could be easy for the com pany
its supply chain m agem an ent. Demogra phic Segm en tati on: Nestle Pure Life isnt a sup rem quality product that only the high class e us es. The product is for all. Infant to seni ors. The re is no age, sex, kind of limitation on use of the product. The income and any other
product is for all. Anyone can use the product as per need. Targetin g Strat egy: and market survey, is something that we have concluded to set the speci fic everyone us es. that
Acco rding to our observation target some market. variations Be cause, that
that as such the re is not set dem graphic techniques o water Everyone can use any size of bottle can be made
from the com pan y. Nestle Pure Life com es in four diffe rent sizes. These four are targeting
0.5L. This size is being heavily used by the consum rs e in place of soft drink. University and Colleges are also included in its target market of this size. But the product is used by everyone only specified in the society also. It is not discu ssed above. people that have been
This is the second size of the Nestle Pure Life Water which is about 1.5L. This size is being used in mostly meeti ngs. You can say that any kind of organizational meeti ng or any other social m eeting, being used. this product is
This is the thi rd size of the Nestle Pure Life which is used in mostly hou ses and offices in the wait ing areas (offices).
executive room in offices with the dispense rs. This s Nestle Pure Life Water Bottle is also very helpf ul in m any dispensers av ailable in the market with good op tions.
Consum er
The product
Profiling
Anal ysis:
of Pakistan and the re is no
rest riction in use of Nestle Pure Life as the is not that kind of product with specific characteristics. is free to use Nestle Pure Life.
Requirement Considerable Bottle Size Age Group infant - maximum 0.5L 1.5L 12L 19L age 15years - 60years 25years - 70years 25years - 70years All the people Household Household & Offices Household & Offices No No No No No No Can be Can be No No No No Related To People Of / Use Sex Income Education
The above
table show s
that Nestle Pure Life is for Nestle Pure Life Water persons. use of can be Nestle Pure Life on daily will be No.
Ca ns can only be used by high er income the data is linked w ith the regular for the peo ple who consume Nestle Pure Life Water Cans. Means incom e considerable basis. If we ex clude the factor Muslims.
Product
Stra y teg
Line:
due to certain reasons and problems faced by The re are many areas in Pakistan
wh ere we will not find pu re w ater but the infiltrated wate r. That could ha rm your body and ca use the m ajor problem called Diaria. That is one
of the harmful dis ease s which can also lead to death. decided Now the Pakistan ingredients To ove rcom e to launch this its problem, Nestle by w ater product
of AVA Compan y. control of Nestle its product by offering very useful in the are calcium and many other useful things which
launched
body more than the wate r. Nestle is available market. 0.5L, 1.5L, 12L and 19L. These
m rket in four good sizes acco rding to the need and as per targeted a sizes com plete sized acco rding to the need of the custom ers. To unders tand
the full ing redients of the w ter, we wo uld like to show a FAB Analysis. a
The above chart show the ingredients s Life Water ingredients Bottle. The w ater
and level of them in Nestle Pure on the basis of above the FAB Analysis of
is also tested
Here is one m re table which will clearly define o Nestle Pure Life Wate r.
gy:
not taking active part in social welfa re. And on we see the lower com red pa FMCGs like Unilever, If we look at the prices, we can ha ve to m aintain their level of
Palmo live and Pr octer and Gamble. observe and pricin g strategies also. They
that Nestle is also using its name for the prom ional activities ot
effi ciency and alwa ys provide the best at best price. Nestle ca res abo ut the custom ers. the pricing the fullest . Profit earning is the core aim of every com pany happine ss. Only a few am ount one of the leader Profit. but in case of nestle trust and As the tim is of inflation, nestle e extent is trying to ove rcom e our consum ers to problems to the they can do. Nestls point of view is
their profit m rgin is small just for the sake of custom a ers
Nestle always strive to give super ior product at low rat es. Nestle is also of retai ning their custom ers. their succ ess. They use the simple formula for the price that is C ost +
dist ributi on
are acce ssible, no matter whe re are in Pakistan. Nestle aims to are the
put togeth er proc esse s from the farm to and make su re products to the consum ers at tim e, the right cost
accurate quantities. In the first quarter of 2006, Nestle proved it by deliv ering an amazing Nestl products in Pakistan. The mission of Nestle Sup ply Chain is to:
1. Op timize and cons olidate resou rces and proce sses for a low-c ost but efficient 2. Deve lop and m nage simp lified and effective a achieve a high level of service imp rovem ent cul ture driven by pe rform ance 3. Create a continuous supply network to
To
their that
tasks,
the
company
both
marketing of
channels channel,
m ethod
and vertical.
Pure Life
Pakistan and from wh olesalers; the products and from retailers, dist ributi on channel. the products reaches In this channel, Pure Life is also delive red directly
are distributed
to ultim ate
consum ers.
throw vertical
Mar ke t
IMC
M apping
There are certain those num ber points of water points on are very helpful products
and USP
occupy in their custom ers and their custom ers. Pakistani The re are But
market including
Springley, Sprarklet,
Aqua Fina, Kinley, Deja Blue and many others. throw many reasons.
The which
main
reason
is
Pure Water
w ater
ch emicals the
which hum an
Nestle Pure Life is the only water which is pu re in natu re. unique sell ing is also the powerful The
po in of Nestle Pure Life. This is t the most the mind purchasing any water also very im portant bottle in their for the consum ers. point that is in while nam is e from. It logo of of brand of the custom ers
of Nestle is Good
Food Good Life. That is very attractive good products for their healthy the
that they re being off ered the child ren. Ob viously a is a brand
Nestle, youll get to know that a bi rd is feeding m oth er cant deceive child ren. Nestle
nestle which explains a big symbol of quality to custom ers. Nestle Pure Life shows in their ads abo ut the purity of w ater w ater need for your bod y. In its launchi ng advertisem ent, and the the com pany
advertis es Nestle Pure Life very succe ssfu lly. In that advertise ment, a lady is drinking Nestle Pure Life Water and then it goes towa rds inside the body to show the functions com ercial that boosted m advertising on famous websites of pure wate r. That was the aw esom e Pure Life. Nestle that is also like you can observe whenever the sale of Nestle
accoun t, the ads of Nestle will be the re. you will see in the cities of Nestle. Thus, Nestle is using all
to aware people about the products types of m edia to advertise Life was launched, m rket testing a was also arranged
their products in anywa y. When Nestle Pure the free sam ples pur pose. of 0.5L bottles for Then a short your bod y. three steps. walk
they distributed
for the sake of good health and sem nars was also i
con ducted to make sure about the pure w ater needed Pe rso nal S ling: el A direct Ven dor Selling Activity was coordinated
the sum er m
m onths
of June, July, and August 1999 in Laho re. A team of T-shirts, caps and jackets, sold chilled 0.5 liter The selling idea of personal on all major intersections.
brand got great mileage out of this innovative Publ icity: Pure Life was launched am ount on 14 December, was printed
in terms of brand awarenes s, paid trial, im age as well as real sal es. 1998 in Karachi with a huge
show by the loca ls. The n in all the local new spapers awaren ess of the brand
and gave its int roduc tion a good start. Spec ific promotions of Nestle Pure Life were arranged key outlets display of Lah ore. and specially designed POS material in some of the used to
Elaborate shelf space was acqu ired for product was exte nsively pu rchas e of 1.5 ml, one 1.5 ml bottle Similarly on a 6-bot tle purch ase of 1.5 Regarding trade promotion, the of 4 % during this sales Nestle Pure Life grow pa ce
On a 12-b ottle
reta iler was also given an addi tional discount promotion. trem endously Not only did the sal es of
The above map shows the ranking of different products custom ers and retailers
Kinley and Pepsis Aqua Fina are the real tim com titors of Nestle e pe Pure Life. Nestle Pure Life is on the top of the map having available m rket sha re. You can see the pie chart of market share in the diagram a show he re. There are other products n Blue, Dew Drops, and Springley etc in the market like Deja
Mar ke Share t
Market Share
Is lam abad
Lahore
Karachi
Lahore
Karachi
Is lam abad
The above chart show the m rket share of Nestle in three major cities of s a Pakistan. He re are Lah ore, Karachi 50%.
(The
C petitive om
com titor and w pe hat it has unique
Position:
from its com peti tors. It tells its
Competi tive positi on of Nestle tells that how much its competi ng its posi tion in the m rket that whe re it stands in market. And also tells us a
that w hat
position
analyze its posit ion from two aspec ts SWOT Matrix Anal ysis of the com pany Core Com petencies & Key Success Fact ors
SWOT A alys is o th C m a y n f e o p n:
SWOT analysis would tell us in better w ay about the com titive pe posi tion of the com pan y. Following is SWOT analysis of the com pan y. Stre ngth: risk. High quality standa rds Strong Brand name (NESTLE LOGO & FAMILY BRAND) Pure Drinking Water in m rket a Mineral Produ ct (Free of ch emicals) Only brand in the area m aintaining It has largest m ket share ar Ease of availabi lity of their products all over Pakistan Im ense m product range and huge diversification leads to reduce its quality and taste
Wea kn s s: e These dem and m bers. em Communicat ion is w ak e Lack of Awa renes s Weak Distr ibut ion Channe ls distributors, refuse though observi ng the rapid inc reas e in custom er more efficient and innovative staff that to hire new,
wo uld take the organizat ions to rise rather they stuck to their old staff
Oppo rtun itie s: taste Concentrati It has ng on these areas of w aknes s can increase sales e its product in better way. to increase its product m ineral line by water of It has op portun ity to advertise strongest opportunity in mineral
diffe rent taste. So it capt ured the m rket. a By inc reasing produ ct line it can also increase its sales. Segm ents Uncertain are being shared by com peti tors condit ions will affect the sal es Threat: Under cutting by com petit ors.
Core C m e o p t
A) Innovat iv Product: e
en ie c s & ke s c cess y u fa to : c rs
innovative produ ct in Pakistan. Some of
Nestle first of all int roduced Pure Water Its free of Ge rm s It is free of chem ical It includes H ealth
and m ke this m a ineral water unique from others D rinking Wate r. Beca use prevent its users from different dis eas es. Nestle spons ors diff erent events Cont inuous improvem ent Social responsi bility
is basically
a company
has. As
Mineral Water has this core com petenc it can grow it sales its product from others.
y. If Nestle meet the se core Then it can also are key factors So these
and revenue.
product and tells w hich product stands the diffe rentiation of characteristics com petitor of Nestle is Aqua
and w aknes ses of the product with its com titors. e pe know that more important
N estle P ure Life Largest Mar ket Shar e Pure Water w ith Vitam ins Availability of N estle Water is E sy a T here N estle is on 1 segm ly ent S in sen o se So com pany of should in
Aqua Fina Low Mar ket Shar e M ineral Water(chem ical Availability of Product D ifficu lt It h as d ifferen t seg en . m ted d ifferen t ta ste.
s) is It h as
on e taste. product. ta e . st s
w ater of d ifferen t
h as a strong seg e n m tat ion S . o d ue to seg en tio n its m ta in creasing its sale s.
STRATEGIES ADVANTAGES:
Every product helps prom ise
FOR
COMPETITIVE
contact high
on the shelf, every service and every customer A Nestl brand regulations and name that with all it
on a product is a m ts ee
standa rds of qualit y. Customers every expect us to keep this promise every the safety time. Under no
circum tances s
will we
com promise on
eff ort must be made People, equipm ent it. Compani es with
ensu re safety and confo rm ity of Nestl products at all tim es. The effort standa rds make fewer It is m akes, waste less tim and m ist e oney also make higher and are mo re produc tive. They
beca use their profit margins for nestle pure life is only 5% .They For increasing their sales strategies. sales segm en tat ion with more effective their
after that profit margin will inc reas e. Then they can prom ote more their product by advertising and tools like this.
Problem s
the com pany Solu tio n:
Nestle should contact for financial, Pakistan com pany could should
O ne mo re thing
m ade som agree ments abo ut their busine ss pla ns so e could able to work with stabi lity. its product with certain line but due to some is
The group is willing to en hance internal and exte rnal reasons facing the shortage in the m rket. a Solu tio n: The com pany of producing
along
security, the
company
should buy the existing plan ts by any mean in Pakistan of market. Beca use to setup a new plant can be that company im age should work to meet the demand. There should be very low is so strong in
costly for the com pan y. It is also possible with other small companies probab ility of loss on
C clu on sion :
Nestle is the products problems. Nestle was doing its good problems of low quality they unhy gienic things job in past but now it is facing some of their products. Nestle is sued by someone busine ss. They are mixing to custom ers health. Its world leader in FMCG industr y. People trust on the launched by the com pany even the product is facing som e
claim that they are doing unethical which can caus e dam age
exam ple is that their water is not pu re and good for health. You can see dust par tials in Nestle m ineral shows its product custom ers quality w ater w hen you keep it in sunlight that is down. Now they have to do mo re making
their strong posi tion in m rket be cause when you lose your image in a eye then it is dif ficult to renew the ir im age.