marketing term report nestle

Nestlé

MARKETING TERM REPORT

May 14

ContentsNestlé.......................................................................................................................................................... 2

Acknowledgement..................................................................................................................................... 4

EXECUTIVE SUMMARY............................................................................................................................. 5

Introduction................................................................................................................................................ 5

By the Company:.................................................................................................................................... 5

Our Mission Statement.............................................................................................................................. 6

Our vision and values............................................................................................................................... 6

Our Ambition.............................................................................................................................................. 7

OVERVIEW OF NESTLÉ............................................................................................................................ 7

Origin:..................................................................................................................................................... 7

NESTLÉ IN PAKISTAN........................................................................................................................... 7

Current Overview of Nestlé Milk Pak Ltd’s..........................................................................................7

PRODUCT LINE.......................................................................................................................................... 8

Dairy products........................................................................................................................................ 8

Chilled dairy........................................................................................................................................... 8

Beverages............................................................................................................................................... 9

Bottled water........................................................................................................................................ 10

Culinary and Foods.............................................................................................................................. 10

Baby Food............................................................................................................................................ 11

BCG Matrix............................................................................................................................................... 12

BRANDING STRATEGY OF NESTLE PURE LIFE..................................................................................13

POSITIONING........................................................................................................................................ 13

LABELING................................................................................................................................................ 13

Nestlé Nutritional Compass................................................................................................................13

Nutritional Information........................................................................................................................ 14

Good question:..................................................................................................................................... 14

Good to know:...................................................................................................................................... 14

Good to remember:.............................................................................................................................. 14

Good to talk:......................................................................................................................................... 14

MARKET SEGMENTATION..................................................................................................................... 14

Marketing Nestlé Pakistan Limited Term Report

May 14

Geographic Segmentation..................................................................................................................15

Demographic Segmentation................................................................................................................15

NEWPRODUCT DEVELOPMENT............................................................................................................15

PRICE FIXATION STRATIGIES................................................................................................................15

Profit Earning:...................................................................................................................................... 15

Customer satisfaction:........................................................................................................................ 15

STRATIGIES FOR FIXING THE PRICE:...............................................................................................15

SUCCESS & FAILIURE OF DIFFERENT PRODUCTS VS...................................................................18

CONSUMER BUYING BEHAVIOR.......................................................................................................18

FUTURE PROSPECTS AND CHALENGES FOR THE.........................................................................18

COMPANY............................................................................................................................................. 18

RECOMMENDATIONS............................................................................................................................. 18

CONCLUSION.......................................................................................................................................... 19


May 14

Acknowledgement

In the name of Allah, The Most Gracious, The most Merciful. First of all we are thankful to Allah Almighty for giving us the Mind to think, Heart to feel the consequences of our business idea, strength to complete and Ability to work successfully on our project.

We have taken efforts in this report. However, it would not have been possible without the kind support and help of many individuals and organization. We would like to extend our sincere thanks to all of them.

We are highly indebted to Indus University for their guidance and constant supervision as well as for providing necessary information regarding the report & also for their support in completing the report.

We would like to express our gratitude towards our parents & member of Indus University for their kind co-operation and encouragement which help us in completion of this report.We would like to express our special gratitude and thanks to industry persons for giving us such attention and time.

Our thanks and appreciations also go to our colleague in developing the report and people who have willingly helped us out with their abilities.


May 14

EXECUTIVE SUMMARYNestlé is undoubtedly one of the most proficient food companies not only in Pakistan but all over the world. The employees at Nestle have finagled to retain their standards to the most high-pitched level possible in the market. They make sure of the fact that the products of Nestle are definitely the BEST TO USE. Nestle has an assortment of products to offer and they all are the best of their types.

For this project our main concern was to study the strategies followed by Nestle in regard to the 4P’s of marketing. We got some information from internet about the overall history and background of the company. About other information we talked with Mr. Yaseen (Assistant Manager of Mechanical department Nestle).It was quite nice of him to provide us with all the relative information. We tried to cover all the main aspects of our course starting from some basic concepts to the complex ones.

Now days for any company to progress in the market its marketing strategies are of supreme importance and that is the reason we opted for Nestle to try and cognize what exceptional they were doing to maintain their top position in the market.

In Finding and Analysis we have described the marketing techniques observed at Nestle and then also did our analysis on these observed techniques. In the end we made some recommendations based on our analysis to make them improve their overall revenue rate.


May 14

IntroductionBy the Company:

Nestlé is an international corporation that produces a variety of products including food, beverages and pharmaceuticals. The company was founded in 1867 in Vevey, Switzerland and has facilities worldwide.

Nutrition, Health and Wellness is Nestlé’s strategic direction. We want you to be able to make healthy choices about your food and beverages. We also believe that good food sometimes means treating yourself!

We aim to make your life more pleasurable because our products not only taste better; but they are also more nutritious.

Here we have listed some articles and tools to provide you good information about Nutrition, Health and Wellness.

Our Mission StatementNestlé is... ...the world's leading nutrition, health and wellness company. Our mission of "Good Food, Good Life" is to provide consumers with the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions, from morning to night.


May 14

Our vision and valuesTo be a leading, competitive, Nutrition, Health and Wellness Company delivering improved shareholder value by being a preferred corporate citizen, preferred employer, preferred supplier selling preferred products.

Our AmbitionTo be the leading Nutrition, Health and Wellness Company in Pakistan.

OVERVIEW OF NESTLÉNestlé’s Brief History

Origin:The key factor, which drove the early history of the enterprise that would become

The Nestlé Company, was Henri Nestlé's search for a healthy, economical alternative to breastfeeding for mothers who could not feed their infants at the breast.(Henri Nestlé, Scientist and businessman, Founded Nestlé over)


May 14

NESTLÉ IN PAKISTANNestlé came to Pakistan in 1989, before 1989 there was a whole seller of Nestlé in

Karachi named “Sultan Chawala”. In 1992 Nestlé made a Joint Venture with “MilkPak Ltd.” and named as “Nestlé MilkPak Ltd.”

Current Overview of Nestlé Milk Pak Ltd’sNow a day’s company is running in profit. According to Nestlé they never face slump in normal days, because food products are the demand of every time either it is slump or boom. 11th September Company faces some problems for 20-25 days. As at that time there was slump on all industries of Pakistan. But now it is working as previous.

PRODUCT LINEDairy products

Mil

kP

ak

Nes

vita

Nid

o

Mil

kP

ak

Cre

am

Eve

ryD

ay


May 14

Chilled dairy

NE

ST

LÉ

Y

OG

UR

T

SW

EE

T N

T

AS

TY

NE

ST

LÉ

RA

ITA

Beverages

NE

ST

LÉ

F

RU

ITA

V

ITA

LS

&

NE

S F

RU

ITA


May 14

MIL

O

NE

SC

AF

E

Bottled water

NE

ST

LÉ

PU

RE

LIF

E


May 14

Culinary and Foods

MA

GG

I N

OO

DL

ES

Baby Food

CE

RE

LA

C


May 14

BCG Matrix

Expansion Grid


StarNestlé Pure

Life, Everyday, Cerelac.

Question MarkCrunch

Cash Cows

Nestlé Milk Pack, Juices,

Nescafe

Doginstant drink Lemo Malta

Market Penetration:Nestle Fruita VItals

Product Development:NesVita

Market Development:Mineral Water,

Globally

Diversification:L`Oreal

Expansion Grid

May 14

BRANDING STRATEGY OF NESTLE PURE LIFE

Nestle brand name present a message of caring which make it distinctive and attractive than other companies. Pure Life's brand is good food for good life. The message of family protection is enough to get the attraction of customer. The Nestlé's brand name is easy to understand & translate. It is easy to pronounce and it is also easy to recognize. Another message in brand name is given to customer to preserve their families from different deceases.

POSITIONING We will position our product as a high quality product consumer focused. Messages like

“Who knows your taste better than us”,“Nestle ice-cream now at your door step”;

“Add additional flavors’ to your life”Will help us portray our picture clearly and distinctly. We will position our product against the competitors and gain competitive advantage through our efficient promotional methods, using innovations, and by reaching closer to our target market through the arrangement of events like BASANT, VALENTINE DAY and etc. In short consumers will view us as a product providing highly quality, in terms of taste, customer focused and, at the same time reasonably priced as compared to others.

LABELINGMaking healthier choices for you and your family can be very confusing.To help you make informed choices about your diet and to enjoy a more healthy and balanced life, Nestlé has developed an on-pack tool called the Nestlé Nutritional Compass.

Nestlé Nutritional CompassThe Nestlé Nutritional Compass can be found on almost all Nestlé products worldwide. It gives you at-a-glance information to help you make decisions.


May 14

The compass comprises four boxes:

Nutritional InformationThis information is given in a standardized format that will allow you to easily compare the amount of energy, protein, carbohydrate and fat in different products.

Good question:A question related to the consumption of the product and its fit in a balanced diet.

Good to know:This information box provides nutritional information about the product, explaining one or more elements of the nutrient table or benefits of any ingredient. It could address issues of public concern e.g. amount of fat, sugar or salt contained in the product.

Good to remember:This box provides tips, advice and information related to the consumption of the product in a balanced diet. This box may also provide healthy lifestyle tips to supplement a healthy diet.

Good to talk:Here, you can find our telephone number, address or website details for getting in touch with us with your concerns or questions.


May 14

MARKET SEGMENTATION

For getting the maximum market share and respect of the product in the minds of the consumer, as per our observation and market survey we have concluded that Nestle market segmentation is based on two points.

Geographic Segmentation The company has divided its geographic segmentation in several regions. First they have the segmentation of a whole country and from each provincial capital, they divided its areas into north, east, west, south. So that it could be easy for the company to work efficiently on its supply chain management.

Demographic Segmentation Nestle items aren’t a supreme quality products that only the high class uses. There is no age, sex, income and any other kind of limitation on use of its products. The product is for all. Anyone can use the product as per need.

NEWPRODUCT DEVELOPMENT

PRICE FIXATION STRATIGIES These are following objectives of nestle pure life regarding price fixation:

Profit Earning: Profit earning is the main objective of every company but in case of nestle their profit margin is low. Only a few amount of profit is collected from pure life water.

Customer satisfaction: In nestle pure life price is not fixed by keeping in mind profit motive, only customer satisfaction is kept in mind while fixing the prices.


May 14

STRATIGIES FOR FIXING THE PRICE: In nestle prices are set on cost basis as given below: Price = Cost + Profit Break even or Target price: Per Unit Price= variable cost + fixed cost / units of sale

PRODUCT LIFE CYCLE

Introductory Stage Frequent product modification

Limited distribution

High marketing and production costs

Promotion focuses on awareness and information


May 14

Nestlé India Ltd. (NIL), the Indian subsidiary of the global FMCG major ,Nestlé SA, introduced the Maggi brand in India in 1982, with its launch of Maggi 2 Minute Noodles, an instant noodles product

With the launch of Maggi noodles , NIL created an entirely new food category -instant noodles -in the Indian packaged food market. Because of its first-mover advantage, NIL successfully managed to retain its leadership in the instant noodles category

Growth Stage Increasing rate of sales

Entrance of competitors

Initial healthy profits

Prices normally fall

Development costs are recovered

10 yrs back it enjoyed around 50% market share in this segment which was valued at

around 250 crores.

During the 1990s, the sales of Maggi noodles declined

In order to improve sales, NIL changed the formulation of Maggi noodles in 1997.

However, this proved to be a mistake, as consumers formulation of the noodles, after which the sales revived. Over the years, NIL also introduced several other products like soups and cooking aids under the Maggi brand.

Maturity Stage

Saturated markets

Extending product line

Stylistic product changes


May 14

Heavy promotions to dealers and consumers

Prices and profits fall

In 2003 Hindustan Lever Ltd was all set to take on Nestle's bestselling Maggi2-minute noodles by launching a new category of liquid snacks under its food brand, Knorr Annapurna.

The new product, called Knorr Annapurna Soupy Snax, was priced aggressively at Rs 5 and had four variants: two chicken options and two vegetarian.

Like Maggi, Soupy Snax will be an in-between-meals snack and will be targeted at all age groups, particularly office-goers. Many consumer products are in Maturity Stage.

Decline Stage If No Product Innovation Brought

Long-run drop in sales

Large inventories of unsold items

Elimination of all nonessential marketing expenses

SUCCESS & FAILIURE OF DIFFERENT PRODUCTS VS

CONSUMER BUYING BEHAVIORIn buying Nestlé products no “Complex or Dissonance buying behavior” is under taken as Nestlé products are not very expensive, risky, infrequent purchased, less difference in brands and highly self-expressive; but products are of daily use less in price and purchased frequently.

FUTURE PROSPECTS AND CHALENGES FOR THECOMPANY


May 14

Nestlé is manufacturing many products. The logo of the company is based on quality and customer satisfaction. Many people said that the Nestlé’s marketing management philosophy is based on quality, so Nestlé is at product concept but it is not the reality.

RECOMMENDATIONS The pricing strategy should be improve in order to retain more customers Instant drinks should be re-launch with different marketing strategy Nestle should improve their customer service as being their customer we are not

satisfied with their customer service.

CONCLUSIONFor a company that will turn one hundred in a decade, Nestle has almost tried all of the strategies there can be. Nestle company has expanded internationally, helped countries’ economies grow, be environmentally conscious and create joint ventures with other companies in which enhanced Nestlé’s and these companies’ performance positively.


marketing term report nestle

Business