nestle pure life research project

PROJECT OF MARKETING

Submitted to:- SIR YAWAR ABBAS

Submitted by:-

HUSSAIN AFZAL 2008-ag-900

MBA 4 TH MARKETING

UNIVERSITY OF AGRICULTURE FAISALABAD

DEDICATIONS:-

I WANT TO DEDICATE IT TO MY

LATE GRANDFATHER &

GRANDMOTHER

THEN MY PARENTS &

FAMILY,BECAUSE THEY

APPRECIATE ME EVER

THEN MY INSTRUCTORS &

SUPERVISOR WHO POLISH MY

CAPABILITIES & LET ME SHOW

MYSELF

THEN ALL MY FRIENDS & SPECIAL

MY GROUP MEMBERS WHO JUST

KNOW TO PUSH ME UP…..

AKNOWLEDGEMENT

All praises for almighty Allah. The Creator. Whose uniqueness oneness is unchallengeable countless thanks to He the Lords of Lords who blessed us with the courage and power to complete this report and all respects and regards to Holy Prophet Hazrat Muhmmad (PBUH) for giving us the faith paving us on the right path with the essence of faith in ALLAH

We feel great pleasure in expressing our profound and cordial gratitude to our respected teacher and taught supervisors Sir YAWAR ABBAS for his admirable cooperation guidance for us and sympathetic attitude which enable us in the formulation of and compilation of report.

Our special thanks and favor for our esteemed friends for their ever lasting cooperation and giving us the homely atmosphere. Last but not the least we thank full to our parents and our family members for their cooperation guidance and inspiration throughout the course.

& Special thanks to Mr.WAQAR AZEEM AWAN who lead me in data compiling…

asddasdasdffgsfdgfgh

Executive summary History title of research programme SWOT ANALYSIS Bcg matrix Target market Point of purchase COMPETITIVE ADVANTAGE Market growth Market analysis Marketing mix Product packaging Pricing policy Distribution Promotion Questionair Conclusion recommencations

Executive Summary

This report,regarding Nestlé water. It starts with an introduction about

Nestlé followed by the history of Nestlé. It gives a briefing about Nestlé.

This report also includes the market mix of the product. All the 4P’s

of marketing mix for the product has been discussed and explained to reveal

the significance of its pricing, product, placing and promotional activities

along with the strength and weaknesses of the organization.The report shows

an internal architecture of the working of the Nestlé confectionary business.

It gives a detail about the supporting department that has helped the business

in their daily working.

Also it discusses the objectives, policies of the organization along with their

competitors at national level. There are also some

suggestions/recommendations for the business.

TITLE OF RESEARCH PROGRAME

“ NESTLE IS LEADING DUE TO ITS BRAND

IMAGE,BUT ITS COMPETITORS SHRINKING

ITS MARKET SHARE”

HISTORY OF NESTLE

Henri Nestlé founded Nestlé in 1866 in Switzerland. Nestlé means

‘little nest’ in Swiss German. Nestlé first customer was a premature infant

who could tolerate neither his mother’s milk nor any other conventional

substitute. Thus, Henri’s ultimate goal was to help fight the problem of

infant mortality due to malnutrition for which he developed a product

combining various cow’s milk, wheat flour and sugar and name it Farine

Lactee Nestlé, which was the first product of Nestlé being marketed in

Europe.

In 1974, Jules Monnerat purchased Nestlé and collectively they

launched a condensed milk product of its own. In 1905, Nestlé got merged

with Anglo-Swiss condensed milk.

After some time, when Nestlé got fully established and all its

operation were properly functioning in Europe and was gaining fame around

Europe, then Nestlé decided to set up production plants around the globe to

ensure the growth of the organization and to become multinational.

The decision to set up industrial operation in new market needs a lot

of research, as there are various factors that effect the growth of the

organization and turns out to be a loss for the company. Such factors are as

follows

The availability of raw material

Cost factor

Economic climate

Consumer purchasing power

Consumer tastes

The decision to become multinational turned fruitful for Nestlé and today Nestlé has its

own operations and products in America, England, India, Brazil, Australia, Pakistan,

Hungary, France, Belgium, Italy, Spain and various other countries around the globe.

NESTLE TODAY

Nestle is now the world's largest food company. It is present on all five

continents, has an annual turnover of 74.7 billion Swiss francs, runs 509 factories in 83

countries and employs about 231,000 people the world over.

The Company owes its current status to the pioneering spirit inherited from its

founders which continues to inspire it, to its concern with quality and to its constant

search for new ways of satisfying man's nutritional needs.

Wherever possible, it sets up factories locally, employs personnel from the

country concerned and relies on indigenous raw materials. Its agricultural services

provide assistance to improve the quality and yield of the raw materials it uses. Much

attention is devoted to professional training and to the integration of the Company in its

economic and social environment.

VISION: To provide PURE WATER to consumer

MISSION: To add up minerals best for digestive system of human body

Short term goalsTo boost the sales Creating value for customer

Long term goals

Keep the loyalty of customer with NESTLE

HISTORICAL DEVELOPMENT

1866 Company’s foundation.

1905 Merger between Nestlé & Anglo-Swiss Condensed Milk.

1929 Merger with Peter-Cailler-Kohler Chocolates Suissee 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 Nestlé acquires Victor Schmidt & Sohne, Austria’s oldest confectionary, including the famous “Mozartkugeln”.

1997 Nestlé, through the Perrier Vittel Group, expands its min activities with the outright acquisition of San Pellegrino.

1998

1998

Nestlé acquires Spillers Petfoods of the UK and strengthen in the petfood business which began in 1985 with the Carnation Friskies brand & introduced Nestlé Pure Life.

Nestlé Pure Life 1.5 - liter bottle was introduced in Pakistan.

1999

2000

Divestiture of Findus brand (except in Switzerland and its parts of Nestlé’s frozen food business in Europe.

Divestiture of Hills Bros., MJB and Chase & Sanborn roast ground coffee brands (USA).

Nesle Pure Life Jumbo Service (5 Gallon) was introduced.

NESTLE BRANDS

Quality is an essential ingredient in all the Nestlé brands and also Nestlé brands

maintain nutritional balance in a fast pace world, that is why people around the globe

choose. The detail of the Nestlé brand is as follows:

Baby foods (Nestlé Cerelac, NAN)

Breakfast cereals (Nestlé Cereals)

Dairy products (Milkpak, NIDO, Nespray, Nestlé Yogurts, Everyday)

Ice-creams (Movenpick, Dreyer’s)

Chocolate confectionary (Kit Kat, Smarties, Toffo)

Beverages (Nescafe, Milo, Nestlé juices)

Food service (Nestlé Jumbo Bottle)

Prepared foods (Maggi, Powered Soups)

Bottled water ( Nestlé Pure Life, Nestlé Aquarral)

Pet care (Pro Plan, Purine, ONE, Fancy feast, Dog Chow, Cat Chow, Felix, Alpo)

Pharmaceuticals (Ophthalmic drugs, lens-care solutions & optical surgical

Instruments)

SWOT ANALYSIS OF NESTLE

STRENGTH

LARGE MARKET SHARE ALREADY EXISTING IN MARKET AS COMPARE TO

COMPETITORS IT IS KNOWN AS PURE WATER BEST STAFF,SPECIAL R & D dept Resources Brand Image Consumer Pull category focused sales

WEAKNESSES Advertisement / Promotional Campaigns Weak distribution due to less VANS Less Number of Chillers

High turn over of salesmen Low Trade Offer as compare to competitor Food Services accounts e.g. Restaurants, Bus stands,

Railway stations High price Less party orders due to high price

OPPORTUNITY Changing Lifestyle Faisalabad City Developing on Fast Track Increasing literacy rate Sub Standard Quality of Drinking Water Very low per capita consumption of NPL Big Shop Universe

Threats High Trade offers by Aquafina & Kinley Rising Inflation Rate Low prices of competitor Awareness of customer is increasing

BCG MATRIX

STARS

The stars are the high relative market share and high market growth. Nestle

beverages i.e. are somewhat the stars in their business, because with the high quality and

new designs which comes every now and then makes them more popular among the

customers, because customer with upper class wants the quality and nestle offers the best

quality food items.

Star

Question Marks

Cash Cows

dog

Rel

ativ

e M

ark

et G

row

th

L

ow

H

igh

CASH COWS

The cash cows are their baby food items i.e. nestle cerelace and other baby

food products. Company has to take measures to make these products as stars.

DOGS

The pharmaceutical products are nestle Dog, because it has low-share business

with low growth market especially when we talk about Pakistani market. The company

has to think on what it can do by improving the low share and growth market.

QUESTION MARKS

The question marks are the breakfast cereals. They have high market growth but

low market share. The company has to decide about which question mark they should try

to build into the stars and which one of these should be phased out.

WORLD WATER BOTTLED MARKET

Annually consumption 189billion liter

Estimated sales $ 200 billion

Consumption growth 7 % per year

PAKISTANI BOTTLED WATER

People using bottled water 7 to 8 %

Annually consumption 1.7 billion liter water

Estimated sales RS 20 billion

Consumption growth 1.7 % per year

ECONOMIC SURVEY

Pakistan’s biggest consumer markets include:

CITES POPULATION

Karachi 15 million

Lahore 9 million

Rawalpindi 3.0 million

Faisalabad 2.6 million

Multan 1.6 million

Gujranwala 1.3 million

Hyderabad 1.3 million

Islamabad 1.3 million

peshawar 1.0 million

Population and growth:

population 180 million

Growth rate 4.09%

Urban population 56 million

Urban Population growth rate 2.10%

Size of middle class 82 million

Middle class growth 3%

Age structure:

agePop Age category n

Population & %age

0-14 years 64.5 million39%

15-64 years 94.5 million57%

65 years and over 7.0 million4%

Target marketTarget market is same as of AQAUFINAFirst target was to capture people of age 14-40Now kids & children

Point of PurchsePoint of purchasing of plastic is THAILAND& water from PUBLIC SOURCE

COMPETITIVE ADVANTAGE Its purity is its competitive advantage Its promotional activities regarding after sale is attractiveLike if any bottle in pet is leaked but sealed,then it is replaced while no competitor do like this,which create more security for business customer

More care in filteration process as compare to AQUAFINA

MARKET GROWTH OF NESTLE

NESTLE IS LEADING THE MARKET WITH MARKET SHARE OF 52%

Market Analysis:

Major players in this industry are:

AQUAFINA

Kinley

Sufi

First

Others

MARKETING MIX

PRODUCT:

Product packaging

Plastic bottles

500 ml 1500 ml

Labeling

sticker containing ingredients on the other side USP of the product is specified

USP

purity Taste of NESTLE water is much nice than AQAUAFINA

Pricing Policy

On going rate price Almost the prices of all bottled water is same

500 ML 181500ML 35

DISTRIBUTIONNESTLE has its own distribution networkSoThey provide products to shopkeepers & end consumer itself

PROMOTION ADVERTISING STRATEGY TV RADIO NEWSPAPER MAGAZINE BILLBOARD BUSINESS TO BUSINESS PROMOTION

(YELLOW PAGES) Giving incentives to shopkeepers Incentives for ASMs Stands,t-shirts,chiller,etc for sales promotion & BRAND loyality

DATA ANALYSIS TECHNIQUE

Questioner & data collection from references

Hypothesis:-

Ho: market share of nestle is shrinking due to its competitorsH1: market share of nestle is not shrinking due to its competitors

sample size:- 60

MALES--------------- 45

FEMALES----------- 15

QUESTIONEIR

What brand of water beverages you use to drink?

(a)Nestle (b) Aqua fina (c) Kinley (d) Other

Why you use above related brand?

(a)Quality and taste (b) Price (c) Advertisement (d) Availability

Whose marketing through advertising is strong ?

(a) Nestle(b) Aqua fina(c) Kinley(d) Other

Nestle has strong brand image , due to its purity ?

(a) Strongly agree(b) Agree

(c) Disagree(d) Strongly disagree

Whose taste is best ? (a) Nestle(b) Aqua fina(c) Kinley(d) Other

Whose distribution network is strong ?

(a) Nestle(b) Aqua fina(c) Kinley(d) Other

Whose brand is easily available ?

(a) Nestle(b) Aqua fina(c) Kinley(d) Other

Which bottle quality is good ?

(a) Nestle(b) Aqua fina(c) Kinley(d) Other

Ever you like to see expiry date before you drunk your favorite brand ?

(a) Yes(b) No

What you like it to buy ?

(a) Corner shop(b) Super store

(c) Mega mart(d) Which one is near

Ever you like to do experiment to change your brand ?

(a) Yes(b) No

RESPONDENT PROFILE:-

Name_________________ occupation_______________Age__________________ contact number____________Gender________________

CONCLUSIONS

According to data analysis people do not believe that competitors of nestle are shrinking its share because:

NESTLE has strong brand image on the basis of purity

NESTLE always segment the exact customers, e.g all doctors prefer to use NESTLE pure life water

CARE pharmacy do not believe that till now any of NESTLE competitors are successful to compete on the basis of quality

Nestle has positioned among people as HEALTH provider brand

Recommendations for NESTLE:-

KEEP THE TASTE NICE INCREASE ADVERTISING & SHOW YOUR COMPETITIVE EDGE INCREASE LOYALITY OF CUSTOMER WITH BRAND THROUGH

ATTRACTIVE PACKAGES KEEP THE PRICE LOW,BECAUSE THE DAY WHEN PRICE WILL

COMPETITOR WILL BE VERY NEAR TO YOUR PRICE YOUR SALES WILL BE BOOST UP.

INCREASE ITS DITRIBUTION NETWORK TRY TO GET MORE & MORE PARTY ORDERS GIVE KEEN INTEREST TO CRM INCREASE INCENTIVES & PROMOTIONAL ACTIVITIES More focus on C & D Class Shops by revisiting Shop wise data. Training of ASM’s by Regional Head as a Coach / Team Leader. Training courses/workshops for team Conduct Training Sessions of Salesmen at least once a month at

Regional Level. Hiring of Quality Sales people is in process in Faisalabad City. Re-define roles & responsibilities of every Individual in order to bring

ownership and sense of responsibility. Weekly Meeting with Distributors and Sales Team in order to review

weekly target closing

REFERENCES:-

WWW.NESTLE.COM

WWW.GOOGLE.COM

WWW.IMAGES.COM