Marketing Relaunch of Nestle Lemo and Malta Drink

TABLE OF CONTENT

GLOBAL ORGANIZATION--------------------------------------------------------------01CORPORATE MISSION-------------------------------------------------------------------01LEADING BRANDS ------------------------------------------------------------------------01INTRODUCTION OF LEMO AND MALTA -----------------------------------------01ORIENTATION STRATEGIES ---------------------------------------------------------02MARKETING ENVIRONMENT --------------------------------------------------------02MARKETING RESEARCH & METHOD ---------------------------------------------03SEGMENTATION---------------------------------------------------------------------------03TARGET MARKET ------------------------------------------------------------------------03PRODUCT DEVELOPMENT PROCESS----------------------------------------------03POSITION OF LIMO / MALTA----------------------------------------------------------04PRICING STRATEGY ---------------------------------------------------------------------04DISTRIBUTION STRATEGIES ---------------------------------------------------------04PROMOTIONAL MIX ---------------------------------------------------------------------04ANALYSIS WHY FAIL ???-----------------------------------------------------------------------------05RELAUNCH CORPORATE MISSION AND OBJECTIVE------------------------------------------05RECENT MARKET TRENDS ------------------------------------------------------------06 SEGMENTATION STRATEGY----------------------------------------------------------06STRATEGIES & TACTICS ---------------------------------------------------------------07 PRODUCT DEVELOPMENT-------------------------------------------------------------07 TARGET MARKET-------------------------------------------------------------------------08 POSITION OF ORANGE & LEMONADE---------------------------------------------08 7 P’S PRODUCT (ORANGE & LEMONADE) -----------------------------------------------08 PRICE-------------------------------------------------------------------------------------------09 PLACEMENT---------------------------------------------------------------------------------09 PROMOTIONS-------------------------------------------------------------------------------09 PEOPLE----------------------------------------------------------------------------------------10 PHYSICAL ENVIRONMENT ------------------------------------------------------------10 PROCESS--------------------------------------------------------------------------------------10 DISTRIBUTION STRATEGIES ---------------------------------------------------------10

CONCLUSION-------------------------------------------------------------------------------10

GLOBAL ORGANIZATION

It is a Swiss Company and has about 254,000 employees working world wide. Company is operating in more than 130 countries. It is world´s leading Food & Beverage Company. People, brands & products are the keys.

CORPORATE MISSION

Be the leading healthy, nutrition and Wellness Company in the world. Wants to be 100b company in 2014 in Pakistan.

LEADING BRANDS

Nido Everyday Milkpak

Nescafe Nestle Purelife Cerelac

Nestle Dahi Milkpak Cream Milkpak Dasighee

Nestle Juices

INTRODUCTION OF LEMO AND MALTA

Lemo/Malta is the product of Nestle, Which was launch in July 2005. Company aimed to target a growing segment of soft drinks. Company targeted smart and young house wives of age between 25 years to 35 years, Socio Economic Class (SEC) B and C, with two SKU (Stock keeping units), 25gm sachets and 500gm jar.

Company is committed of creating value for its Customer, and its shareholders. Company has not launched any product for this SEC in lower price earlier.

Low price compare to Roh Afza, Jam-e-Sherin, Tang & Lemopani. These are the main player in this category. Company thought that there is a huge market potential of growth and profitability in this category.

ORIENTATION STRATEGIES Company launched the product with market penetration strategy. The used the existing distribution model to make the product available in the market.

MARKETING ENVIRONMENT

CompetitionThere is a limited competition. Only four competitors are playing in the market.Roh Afza & Jam-e-Sherin in liquid drinks and Tang & Lemopani in powder drinks. There are two other mushroom brands kwijkool and Mixer.

EconomicConsumer buying power was good and spending patterns in this category were considerably growing. Roh Afza and Jam-e-Sherin ware not able to sufficiently fulfill the demand of the market and was struggling with major stock outs.

Socio culturalThe trend is increasing that it is considered honor to serve the guests with Roh Afza, Jam-e-Sherin, Tang or Lemopani. So company considered to be in this category with some good product.

TechnologyThere is no technical machinery is required for the production of the product. Company already has the strength to produce it.

PoliticalThere was no political constraint in the production and marketing of the production.

MARKETING RESEARCH & METHOD

Competitors IntelligenceCompany made a detailed survey and collected the data on the competitor’s activities. They planed to launch the product in February when shopkeepers are trying to build stocks for summer season. Focus groupCompany conducted focus group on smart young house wives. They conducted copy test and obtained customers comments and finalized the ad Price responsivenessCompetitors give heavy trade discounts and bulk purchase discounts. Promotional activities include shop displays road shows etc.

Market share analysisOn the basis of the data collected company concluded that major players in the market are Roh Afza & Jam-e-Sherin with 68% market share in liquid drinks. Tang had 12% share and Lemopani had a share of only 7%. These two are the only player in powder drink.

Test 60/40+Company has blind tasting session. 60/40+ test showed that 57% of the smart young housewives recommended that the product was very good.

SEGMENTATION

GeographicCompany launched the product in the major cities Lahore, Karachi and Islamabad.

Demographic and PsychographicCompany targeted smart and young house wives of age between 25 years to 35 years, Socio Economic Class (SEC) B and C,

TARGET MARKET As there was less competition in this category so company decided to adopt Single Segment Strategy.

PRODUCT DEVELOPMENT PROCESS

Product Attribute Company tried to introduce a good Quality product. Physical Characteristics was design to give affordability convenience and launched the product in two SKU’s 25gm and 500gm. Price was kept low, 25gm of Rs.5/- and 500gm of Rs.130/-. Brand Nestlé’s name was used to make the product successful in the market.

An attractive Packaging, Color & Design was used to appeal the customers.Seller’s reputation and services were used by the existing distribution model.

Development Process This was an Imitative Product for the company. Company tried hard to survive in the market and get some considerable share of the market.

Criteria of Product Category was in considerable growth, company’s financial and market structure was very good to support the imitative product.

POSITION OF LIMO / MALTACompany tried to position the product same as Tang had, with the same price point.

PRICING STRATEGY Company launched the product at Rs.5/- same as the competitors price and started head to head competition.

DISTRIBUTION STRATEGIES

PROMOTIONAL MIX

Company planned for the following promotional activities ATL on major billboards, limited time on T.V and selective channels etc. BTL massive use of Point-of-sale (POS) material. Which include posters,

banners, buntings, mobiles, wobblers, shelf talkers etc. Free Sampling was conducted in Lahore, Islamabad and Karachi. 350Kg nestle

malta powder were sampled to create awareness. Town Storming activity was done in selective areas. Gift Scheme was introduced on redemption of empty packets.

ANALYSIS

Reasons Why Fail ??? Trade Discount was less as compare to competitors Competitor’s ATL was more than Nestle Nestle was failed to create product awareness among consumers Quershi, Shezan and Halal foods also launched their products in the same

category along with Nestle’. Marketing investment was not sufficient. Nestle suffer badly with its Product Quality Problems. Try to cash Nestle name. SKU depth was not sufficient. Add was not clear and not attractive Pricing Strategy was not adopted Failed to highlight consumer benefits Design of product was not attractive Positioning was not clear No proper segmentation Taste was not good

RELAUNCH

CORPORATE MISSION

Meet the nutritional need of consumer of all age groups from infancy to old age, from nutrition to pleasure, through an innovative profile of branded food and beverage product of highest quality.

Short Term Objectives To increase market share Restore brand image Increase SKU with success

Long Term Objectives To make this brand profitable Head-on Competition

RECENT MARKET TRENDS

Powder Drinks Market is growing. Quershi, Shezan, Kwijkool and Halal foods are out of this category.

Economical factor to consider is that now its recession and buying power of the people is much lower. So there is an opportunity to introduce low price product which satisfied consumer needs.

Convenience of time & place utility There is no FDI because of political and economical crisis and war against terror. Climate is suitable for the product as global warming is increasing temperature of

the world day by day.

SEGMENTATION STRATEGY

GeographicalCompany will target all provinces major cities (Lahore, Multan, Faisalabad, Karachi, Hydrabad, Peshawar, Quetta and twin cities Islamabad and Pindi) for the initial 1st year of re-launch.

DemographicalAll Age groups, A, B, C and D Class and for all races will be targeted.

PsychologicalSocialized people and excitement seeking people will be targeted.

Behavioral Company will target benefits seeking people. Company will highlight product benefits to the consumers.

STRATEGIES & TACTICS

PRODUCT DEVELOPMENT

TARGET MARKET All age groups, specially young, enthusiastic and smart people. All SECs And the major cities as mentioned earlier.

POSITION OF ORANGE & LEMONADE Company planned to reposition the product of supreme quality at affordable prices and the best in the category.

7 PS Product Price Promotions Place People Process Physical environment

PRODUCT (ORANGE & LEMONADE)

Taste and quality will be improved through the revision of recipe.Company will launch the product in four (4) SKUs 25gm, 130gms, 400gm and 1kg.

PRICE

The prices of 25gm, 130gms, 400gm and 1kg will be Rs.5/-, Rs.25/-, Rs.70/-, and Rs.180/- respectively.Company will use Sales Oriented strategy to increase sales volume and market share.Price Competition will be to keep the low Price, lower profit margins and have deep penetration in the market.

PLACEMENT

Distribution channel for deep penetration Wholesale Direct Retailer Coverage Key Accounts (AL-Fateh, CSD, Rahat Market etc.) in store branding On Blue Account massive use of P2P (path to purchase) material Purchase proper and long term space for at least one quarter at International

Business Markets (Hyperstar, Metro, Makro etc.) and Key accounts.

PROMOTIONS

Advertising Promotion campaign will be launched at the same time on TV, Print Media,

Radio, Billboards two weeks after the stock is available in the market. Two weeks after the run of ATL, company will start Road Shows, School

Competitions and will start Sponsoring sports events. Sales Promotions

Company has planned to target 1000K glasses as Free sampling Trade discount will be given to the retailers so that they could promote the

product. Consumer Promotion is planned at international business markets and key

accounts. Supreme quality glass 1piece on purchase of 1kg pack. Lucky draws (Singapore return ticket) will be conducted at international business

markets and key accounts, monthly on alternate month basis and will be for three months.

Gift Hampers will be given to retailers on achieving targets and to consumers. Gift Hampers to consumers will be given on redemption of empty packs.

o 12 sachet of 25gmo 6 sachet of 130gmo 2 packs of 400gmo 1 pack of 1kg

PEOPLE Company will use its Customer Service Centre and UAN number for regular

feedback. Post Launch feedback will be forwarded to quality department or other relevant

departments through the use of SAP (Information system) for prompt display and action.

PHYSICAL ENVIRONMENT

Company has planned to deliver extra ordinary services like close contact with retailers and consumers to retain goodwill and enhance the image of the company.

Massive In-store branding at all the distribution channels. Huaraches Activities in major shopping areas of all the cities of launch.

PROCESS Speed to the market is of the essence. Company has planned to make the product

available in the market on when ever, where ever and how ever basis. Quick and Prompt response to feedback will be taken in order to gain consumer

confidence. Company will ensure sufficient stock availability to avoid stock outs.

DISTRIBUTION STRATEGIES Company will focus on both pull and push strategy to re-launch the product.Company will provide product directly to International Business houses and to Distributors. Distributors will provide the products to national Key accounts, blue accounts, wholesalers and retailers. Consumers will be able to get the product from al these accounts and business channels.

CONCLUSION

“Ambition is the path to success. Persistence is the vehicle you arrive in.”- Bill Bradley