nestle pure life water marketing plan for pakistan

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Acknowledgement Praise is to Allah Almighty, the one testing us all at all times and making decisions about what we don’t know and can’t know. Writing this report appeared to be a great experience to us. It added a lot to our knowledge while we were working on this report. If we say that this report is one of our memorable experiences in student life, then it would not be wrong. We owe profound gratitude to SIR ALY RAZA SYED for stimulating our creative abilities by assigning this report to us. We are immensely obliged to all our fellow students who guided us in making this report, without whose considerate attention and interest, it would be difficult for us to complete this report on time. Whatever we have learnt from them and this project report has put indelible impression on our mind. It is our conviction that this learning experience will always be a source of help in our practical life and professional career. Marketing Plan For Nestle Pure Life Water Pakistan University Of Management and Technology Page 1 of 30

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Page 1: Nestle Pure Life Water Marketing Plan for Pakistan

Acknowledgement

Praise is to Allah Almighty, the one testing us all at all times and

making decisions about what we don’t know and can’t know. Writing

this report appeared to be a great experience to us. It added a lot to

our knowledge while we were working on this report. If we say that this

report is one of our memorable experiences in student life, then it

would not be wrong.

We owe profound gratitude to SIR ALY RAZA SYED for stimulating our

creative abilities by assigning this report to us. We are immensely

obliged to all our fellow students who guided us in making this report,

without whose considerate attention and interest, it would be difficult

for us to complete this report on time. Whatever we have learnt from

them and this project report has put indelible impression on our mind.

It is our conviction that this learning experience will always be a source

of help in our practical life and professional career.

Marketing Plan For Nestle Pure Life Water PakistanUniversity Of Management and Technology

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Executive Summery

We are analyzing the marketing plan of Nestle which is an FMCG

company. Our analysis of Nestle will include the current market

situation and strategic analysis of the company. We will see the various

strategies that can be used by them for improving their product. Nestle

has been serving worldwide with its excellence in product safety,

quality and value. It provides many products which include dairy

products, beverages, water, and infant dietetic and confectionary. We

have taken NESTLE WATER for our project report. Their aim is to

provide customer with pure drinking water on suitable prices make the

product as convenient as possible. According to their claim that they

provide the best food through out the world. For Nestle Pure Life they

adopted the societal and marketing concept. Further we will explain

the SWOT, SMART, IMC plan competitive analysis and all other

strategies used by them.

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Introduction Of Nestle:

Nestle is the leading FMCG company of Switzerland established by

Henri Nestle. Nestle is serving worldwide with its more than 500

factories in 86 countries comprising almost all continents. Nestlé’s

product portfolio is more than 500 products all over the world serving

best to their customers.

Henri Nestlé endowed his company with the symbol derived from his

name. His family coat of arms, the nest with a mother bird protecting

her young, became the Company's logo and a symbol of the

Company's care and attitude to life-long nutrition. The Nestlé nest

represents the nourishment, security and sense of family that are so

essential to life.

The first product made by Henri Nestlé, a food for babies who were

unable to breastfeed. His first success was a premature infant who

could not tolerate his mother's milk or any of the usual substitutes.

People quickly recognized the value of the new product, after Nestlé's

new formula saved the child's life, and soon, Farine Lactée Henri Nestlé

was being sold in much of Europe. Nestlé has been serving Pakistani

consumers since 1988, when the parent company, the Switzerland-

based Nestlé SA, first acquired a share in Milkpak Ltd.

Nestlé’s Vision:

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The consumer's voice is the key to Nestlé Pakistan's vision and

working. Whether you live in the remotest village or the metropolis of

Karachi, Nestle consumer services team stands ready to listen to your

concerns and provide answers about our products and guidance on

matters of health and wellness.

Nestlé’s global vision is to be the leading health, wellness, and

Nutrition Company of the world. Nestle’ Pakistan subscribes fully to this

global vision. In addition to that, Nestle Pakistan also envisions to:

• Lead a dynamic motivated and professional workforce that is

proud of its heritage and bullish about the future

• Meet the nutritional needs of all age groups through a diversified

product range that contains an innovative portfolio of branded

food and beverages of the highest quality

• Maintain long-term growth and deliver shareholder value

• Establishing responsible communication with the consumer

which in turn can provide us a better look into what changes

need to be made to our products

• Strengthen the position as the best career destination for

talented and motivated individuals

• Empowering a system of self-management

Mission Statement:

“Nestle 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

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solutions, Nestle contributes to your well-being and enhances your

quality of life.”

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Nestle Pure Life Water & Current Market Situation:

The launch of Nestle Pure Life in December 1998 was a truly significant

episode in the history of Nestle Pakistan. Nestle Pure Life was going to

get the entry of Pakistan’s growing water market. At the same time

Pakistan became the first country where Nestle launched the new

brand. Nestle Pure Life is a premium drinking water, produced to the

highest standards of safety and purity as per the website suggests. It is

ideally balanced with essential minerals like vitamins, calcium and

many other useful items. According to nestle, pure water product is the

stasr of nestle having useful ingredients in every drop of water which

are essential for being hydrated all the time. Capitalizing on its strong

brand recognition, aggressive pricing and supported by a strong

marketing campaign, Nestle Pure Life has made very strong inroads

into the water market in Pakistan. Nestlé PURE LIFE is available around

the globe today in Canada, USA, Mexico, Brazil, Argentina, South

Africa, Saudi Arabia, Jordan, Egypt, Lebanon, Turkey, Russia,

Uzbekistan, Pakistan, China, Thailand, and the Philippines.

“A social and managerial process where by individual & groups obtains

good food and good life through creating and exchanging products and

values.”

Launched on the North American market

in 2003, Nestlé PURE LIFE is destined to

become the world’s top and most widely

distributed brand by 2010. Nestle is also

willing and has goal to achieve the $1

Billion enterprise by 2014. Nestle Pure

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Life is a premium drinking water, produced to the highest standard of

safety and purity. The company is seeking to provide customer with

pure drinking water on suitable prices make the product as convenient

as possible. According to their claim that they provide the best food

throughout the world.

Nestle is leading brand in water market and has left behind many local

brands which were working before the launching of Nestle Pure Life.

Now it has maximum market share in developed and major cities of

Pakistan like Lahore, Karachi, Islamabad, Multan, Hyderabad and many

others. As we have discussed earlier that Nestle is going to become the

fully market leader of water market in Pakistan, signs are clearly visible

to achieve the set point of Nestle. Nestle Pure Life is also the star

product of Nestle Pakistan and most probably all over the world where

Nestle Pure Life exist. Here you can see the market share chart for the

product and after that there is a Boston Consultancy Group Matrix is

shown which would describe the ranking of Nestle Pure Life in product

portfolio of Nestle Pakistan. BCG Matrix shows the company’s market

share over the growth of industry. This BCG matrix is the clear picture

of current market situation of Nestle Pure Life.

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Boston Contingency Matrix

Market Share High Market Share LowHigh Industry

Growth

Stars:

Nestle Pure Life

Question Mark:

Culinary Products

Low Industry

Growth

Cash cows:

Coffee (Nescafe)

Dogs:

Chocolate Drinks and

Polo

Information and data pertinent to the market’s

current situation:

They keep the information of the other companies what they are

offering. Try to improve their strategies from others so that they can

promote their product more. like more companies are now coming in

the market so there is more completion in the market and they have to

be up to date from the current situations.

Company’s marketing goals and objectives:

Nestlé's business objective is to manufacture and market the

Company's products in such a way as to create value that can be

sustained over the long term for shareholders, employees, consumers,

and business partners.

Nestlé recognizes that its consumers have a sincere and legitimate

interest in the behavior, beliefs, and actions of the Company behind

brands in which they place their trust and that without its consumers

the Company would not exist.

Nestlé continues to maintain its commitment to follow and respect all

applicable local laws in each of its markets.

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SMART Analysis:

SMART is an acronym which tells us that when ever we set any

companies objectives they should be,

S = Specific

M= Measurable

A = Actionable or Achievable

R = Realistic

T = Time Frame

Market Share:

Nestle is now a days willing to have more and more market share so

that it could achieve the goals that are set. The goal for market share

will be discussed below.

Nestle occupied 85% of drinking water market in all over the Pakistan.

In Lahore

Nestle Pure Life has 69%of total market, Sparklet has 13% and Cool

have 11% and remaining 7%are kept by other local companies. In

Karachi 50% of market is kept by Nestle and 25% by AVA and

remaining 25% is kept by other local companies. As for as Islamabad is

concern Nestle Pure Life has 65%of market Share.

They have certain goals and objectives

which they want to achieve. They want to

create and promote their products to create

value for their product. They have the

resources for increasing their product’s

quality and compete it with the other

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Market Share

Lahore

Karachi

Islamabad

Lahore Karachi Islamabad

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companies. They conduct researches for that and try to get their

objective which they have decided. They are promoting their product

by creating customer awareness.

Nestlé believes that, as a general rule, legislation is the most effective

safeguard of responsible conduct,

although in certain areas, additional

guidance to staff in the form of

voluntary business principles is

beneficial in order to ensure that the

highest standards are met throughout

the organization.

Nestlé is conscious of the fact that the

success of a corporation is a reflection of the professionalism, conduct

and the responsible attitude of its management and employees.

Therefore recruitment of the right people and ongoing training and

development are crucial.

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The Percentage Use of Nestle Pure Life and its Competitors in

IslamabadOthers20% Sparkle

30%

Nestle Pure Life60%

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Hierarchy details of marketing and sales department

Marketing Manager is an employee who is responsible for planning

and controlling its marketing activities and budgets .Marketing

manager take cares the promotional strategies of the products.

Manager try to use innovative ideas for the improvement of product in

market.

Finance manager The field of finance covers the economics of the

contingent claims. Financial economists study the valuation of these

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claims, the markets in which they are traded, and their use by

individuals, corporations, and the society at large.

Finance manager and marketing manager are related with each other

to meet their marketing targets. It is important because alone

marketing manager can not promote any marketing strategy without

any budget.

Market Segmentation and Targeting Strategy and

Consumer Profile Analysis

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 Pure Life Water’s segmentation is based

on two points.

• Geographic Segmentation

• Demographic Segmentation

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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 it’s areas into north, east, west,

south. So that it could be easy for the company to work efficiently on

it’s supply chain management.

Demographic Segmentation:

Nestle Pure Life isn’t a supreme quality product that only the high class

uses. The product is for all. Infant to seniors. There is no age, sex,

income and any other kind of limitation on use of the product. The

product is for all. Anyone can use the product as per need.

Targeting Strategy:

According to our observation and market survey, we have concluded

that as such there is not set demographic techniques to set the specific

target market. Because, water is something that everyone uses.

Everyone can use any size of bottle that Nestle is offering. There are

some variations that can be made throw OUR OBSERVATION but not

from the company.

Nestle Pure Life comes in four different sizes. These four are targeting

different types of people and lifestyles.

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This is the smallest size of Nestle Pure Life Water of

0.5L. This size is being heavily used by the consumers

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 in the society also. It is not

only specified people that have been discussed above.

This is the second size of the Nestle Pure Life Water

which is about 1.5L. This size is being used in mostly

meetings. You can say that any kind of organizational

meeting or any other social meeting, this product is

being used.

This is the third size of the Nestle Pure Life which is

used in mostly houses and offices in the waiting areas

(offices).

This is the fully household product and also using in

executive rooms in offices with the dispensers. This

Nestle Pure Life Water Bottle is also very helpful in

many dispensers available in the market with good

options.

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Consumer Profiling Analysis:

The product is being used by many people of Pakistan and there is no

restriction in use of Nestle Pure Life as the is not that kind of product

with specific characteristics. Everyone is free to use Nestle Pure Life.

Requirement

ConsiderableBottle

Size Age Group

Related To People

Of / Use Sex Income Education

0.5L

infant - maximum

age All the people No No No1.5L 15years - 60years Household No No No12L 25years - 70years Household & Offices No Can be No19L 25years - 70years Household & Offices No Can be No

The above table shows that Nestle Pure Life is for

all. It is not necessary that Nestle Pure Life Water

Cans can only be used by higher income persons.

Because the data is linked with the regular use of

Nestle Pure Life Water Cans. Means income can be

considerable for the people who consume Nestle Pure Life on daily

basis. If we exclude the factor of daily basis the answer will be No.

there is not restriction to use Nestle Pure Life for Muslims and non

Muslims.

Product Strategy and FAB Analysis with Product Line:

The product was launched due to certain reasons and problems faced

by the government and other factors. There are many areas in Pakistan

where we will not find pure water but the infiltrated water. That could

harm your body and cause the major problem called Diaria. That is one

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of the harmful diseases which can also lead to

death. To overcome this problem, Nestle

decided to launch its water product by

acquiring the water plant of AVA Company.

Now the plant is under control of Nestle

Pakistan Ltd. Nestle launched it’s product by offering very useful

ingredients like vitamins, calcium and many other useful things which

gives the human body more than the water. Nestle is available in the

market in four good sizes according to the need and as per targeted

and segmented market. 0.5L, 1.5L, 12L and 19L. These sizes are

complete sized according to the need of the customers. To understand

the full ingredients of the water, we would like to show a FAB Analysis.

The above chart shows the ingredients and level of them in Nestle Pure

Life Water Bottle. The water is also tested on the basis of above

ingredients in the laboratory of USA, Pakistan, and Thailand etc…

Here is one more table which will clearly define the FAB Analysis of

Nestle Pure Life Water.

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FAB ANALYSIS

Feature Attribute Benefit

Osmosis and

DistillationBalanced Water

It helps to balance the

other ingredients of

water for safety.

Sodium Bicarbonate Strength

Increase your strength

speed and stamina

and help to satisfy

thirst.

Magnesium Sulfate Decrease Inflamation

it can be easily

absorbed by the skin

through which we can

decrease

inflammation.

Calcium Chloride Healthy KidneysIt helps the kidneys to

work better.

This is the complete FAB Analysis of Nestle Pure Life which should be

known to all the consumers for powerful CRM.

The Pricing Strategy:

We can easily observe that Nestle itself is not

taking active part in social welfare. And on the

other hand, we see the lower prices of the

product as compared to the other FMCGs

Company’s products like Unilever, Colgate

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Palmolive and Procter and Gamble. If we look at the prices, we can

observe that Nestle is also using its name for the promotional activities

and pricing strategies also. They have to maintain their level of

efficiency and always provide the best at best price. Nestle cares about

the customers. As the time is of inflation, nestle is trying to overcome

the pricing problems to the extent they can do. Nestlé’s point of view is

“Only by understanding their needs can we serve our consumers to

the fullest”.

Profit earning is the core aim of every company but in case of nestle

their profit margin is small just for the sake of customers trust and

happiness. Only a few amount of profit is collected from pure life water.

Nestle always strive to give superior product at low rates. Nestle is also

one of the leader of retaining their customers. This is one reason of

their success. They use the simple formula for the price that is Cost +

Profit.

Market Distribution and Channels Strategy:

Nestlé Pakistan's supply chain and

distribution makes sure that Nestlé

products are accessible, no matter where

consumers are in Pakistan. Nestle aims to

put together processes from the farm to

markets, and make sure products are

distributed to the consumers at the

correct time, the right cost and in the

accurate quantities. In the first quarter of

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2006, Nestle proved it by delivering an amazing 136 million kg of

Nestlé products in Pakistan.

The mission of Nestle Supply Chain is to:

1. Optimize and consolidate resources and processes for a low-cost

but efficient

2. Develop and manage simplified and effective supply network to

achieve a high level of service

3. Create a continuous improvement culture driven by performance

measures and reward

To accomplish their tasks, the company chooses both marketing

channels method that is conventional and vertical. In conventional

channel, Nestle Pure Life is distributed among the wholesalers of

Pakistan and from wholesalers; the products are distributed to retailers

and from retailers, the products reaches to ultimate consumers. Nestle

Pure Life is also delivered directly to the consumers throw vertical

distribution channel. In this channel, the cost can be minimized.

Market Positioning Strategy, IMC Plan, Perceptual

Mapping and USP

There are certain points on which they occupy their customers and

those points are very helpful in retaining their customers. There are

number of water products available in Pakistani market including

Springley, Sprarklet, Aqua Fina, Kinley, Deja Blue and many others. But

Nestle Pure Life attracts its customers throw many reasons.

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The main reason is Pure Water

which is the name of this product.

Rests of the water products are

using chemicals which can be

harmful for the human body but

Nestle Pure Life is the only water

product which is pure in nature.

That is also the unique selling

point of Nestle Pure Life. This is

the most powerful point that is in

the mind of the customers while

purchasing any water bottle in their routine life. The brand name is

also very important for the consumers. The slogan of Nestle is “Good

Food Good Life”. That is very attractive slogan people can attract from.

It puts the perception in the minds of people that they’re being offered

good products for their healthy lifestyle. If you look at the logo of

Nestle, you’ll get to know that a bird is feeding the children. Obviously

a mother can’t deceive the children. Nestle pure life is a brand of

nestle which explains a big symbol of quality to customers.

Nestle Pure Life shows in their ads about the purity of water and the

water need for your body. In its launching advertisement, the company

advertises Nestle Pure Life very successfully. In that advertisement, a

lady is drinking Nestle Pure Life Water and then it goes towards inside

the body to show the functions of pure water. That was the awesome

commercial that boosted the sale of Nestle Pure Life. Nestle is also

advertising on famous websites like you can observe that whenever

you will login to your facebook account, the ads of Nestle will be there.

There are number of sign boards and banners you will see in the cities

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to aware people about the products of Nestle. Thus, Nestle is using all

types of media to advertise their products in anyway. When Nestle Pure

Life was launched, they distributed the free samples of 0.5L bottles for

market testing and for their advertising purpose. Then a short walk

was also arranged for the sake of good health and seminars was also

conducted to make sure about the pure water needed your body.

To understand the depth of Positioning, we will divide into three steps.

Personal Selling:

A direct Vendor Selling Activity was coordinated and carried out during

the summer months of June, July, and August 1999 in Lahore. A team

of vendors, clad in branded T-shirts, caps and jackets, sold chilled 0.5

liter bottles to traveling customers on all major intersections. The

brand got great mileage out of this innovative idea of personal selling

in terms of brand awareness, paid trial, image as well as real sales.

Publicity:

Pure Life was launched on 14 December, 1998 in Karachi with a huge

amount of enthusiasm and positive response shown by the locals. The

successful story of its launch was printed in all the local newspapers

the next day. This greatly helped in creating awareness of the brand

and gave its introduction a good start.

Sales Promotion:

Specific promotions of Nestle Pure Life were arranged in some of the

key outlets of Lahore. Elaborate shelf space was acquired for product

display and specially designed POS material was extensively used to

promote sales. On a 12-bottle purchase of 1.5 ml, one 1.5 ml bottle

was offered free to consumers. Similarly on a 6-bottle purchase of 1.5

ml, one 0.5 ml bottle was offered free. Regarding trade promotion, the

retailer was also given an additional discount of 4 % during this sales

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promotion. Not only did the sales of Nestle Pure Life grow

tremendously during the promotion, these continued at a higher pace

even after it was over.

The above map shows the ranking of different products in the eyes of

customers and retailers as per our survey. In this map, Coca Cola’s

Kinley and Pepsi’s Aqua Fina are the real time competitors of Nestle

Pure Life. Nestle Pure Life is on the top of the map having larger

market share. You can see the pie chart of market share in the diagram

shown here. There are other products available in the market like Deja

Blue, Dew Drops, and Springley etc…

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Market Share

Market Share

Lahore

Karachi

Islamabad

Lahore Karachi Islamabad

The above chart shows the market share of Nestle in three major cities

of Pakistan. Here are Lahore, Karachi and Islamabad. Lahore’s market

share is about 60%, Islamabad’s have 68% and in Karachi, the market

share is about 50%. (The data is not considered 100%. It is just

comparison.)

Competitive Position:

Competitive position of Nestle tells that how much it’s competing its

competitor and what it has unique from its competitors. It tells its

position in the market that where it stands in market. And also tells us

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that what its competitive position is in the market. So we would

analyze its position from two aspects

• SWOT Matrix Analysis of the company

• Core Competencies & Key Success Factors

SWOT Analysis of the Company:

SWOT analysis would tell us in better way about the competitive

position of the company. Following is SWOT analysis of the company.

Strength:

• Strong Brand name (NESTLE LOGO & FAMILY BRAND)

• Pure Drinking Water in market

• Mineral Product (Free of chemicals)

• Only brand in the area maintaining its quality and taste

• It has largest market share

• Ease of availability of their products all over Pakistan

• Immense product range and huge diversification leads to reduce

risk.

• High quality standards

Weakness:

• Communication is weak

• Lack of Awareness

• Weak Distribution Channels

These distributors, though observing the rapid increase in customer

demand refuse to hire new, more efficient and innovative staff that

would take the organizations to rise rather they stuck to their old staff

members.

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Opportunities:

• Concentrating on these areas of weakness can increase sales

• It has opportunity to advertise its product in better way.

• It has strongest opportunity to increase its product line by

making segments in mineral water. Mineral water should be of different

taste E.g. like AQUA FINA in USA has introduced mineral water of

different taste. So it captured the market.

• By increasing product line it can also increase its sales.

Threat:

• Segments are being shared by competitors

• Under cutting by competitors.

• Uncertain conditions will affect the sales

Core Competencies & key success factors:

A) Innovative Product:

Nestle first of all introduced innovative product in Pakistan. Some of

core competencies of Nestle are given below

• Pure Water

• It’s free of Germs

• It is free of chemical

• It includes different vitamins in water which increase its purity

and make this mineral water unique from others

• Health Drinking Water. Because it includes vitamins which

prevent its users from different diseases.

• Nestle sponsors different events

• Continuous improvement

• Social responsibility

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So core competency is basically the skill that a company has. As Nestle

Mineral Water has this core competency. If Nestle meet these core

competencies, it can grow it sales and revenue. Then it can also

differentiate its product from others. So these are key factors to

achieve success and meet goals.

Competitive Analysis

Competitive analysis includes the comparison of one organization with

its competitor. It differentiate product and tells which product stands at

which position. It tells about the differentiation of characteristics and

weaknesses of the product with its competitors.

As we know that more important competitor of Nestle is Aqua Fina.

Nestle Pure Life Aqua FinaLargest Market Share Low Market SharePure Water with Vitamins Mineral Water(chemicals)Availability of Nestle Water is

easy

Availability of Product is

difficultThere is only 1 segment in

Nestle Pure Water. It has only

one taste. So in sense of

segmentation, it’s weak

product. So company should

make Pure water of different

tastes.

It has different taste. It has

segmented. It has introduced

different segments in mineral

water of different tastes, so it

has a strong segmentation. So

due to segmentation it’s

increasing its sales.

STRATEGIES FOR COMPETITIVE ADVANTAGES:

Every product on the shelf, every service and every customer contact

helps to shape this image. A Nestlé brand name on a product is a

promise to the customer that it is safe to consume, that it complies

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with all regulations and that it meets high standards of quality.

Customers expect us to keep this promise every time. Under no

circumstances will we compromise on the safety of a product and

every effort must be made to avoid hazards to health. Likewise,

compliance with all relevant laws and regulations is a must and is not

negotiable. People, equipment and instruments are made available to

ensure safety and conformity of Nestlé products at all times. The effort

is worth it. Companies with huge quality standards make fewer

mistakes, waste less time and money and are more productive. They

also make higher profits. Quality is our most successful product. It is

the key to our success, today and tomorrow.

Other marketing strategies adopted by the company:

In future two competitors of Pure Life are going to launch their water in

the market which are Pepsi & Coca Cola. As their competitor will

advertise their product at very high stage so people will get awareness

about drinking water and nestle pure life can achieve a great market

share in future because people can see that our water is getting rough

day by day and there is a need for pure drinking water to survive in the

world.

For these opportunities company is going to launch an other plant for

drinking water next year.

Firstly Nestle pure life was focusing on product and pricing strategy but

recently it’s focusing on marketing strategy to create customer

awareness of the product in those areas which are far away.

Marketing Financials:

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In marketing financials of the Nestlé, advertisement budget is low

because their profit margins for nestle pure life is only 5%.They have

weak advertisement. For increasing their sales they have to increase

segmentation with more effective strategies. If they will increase their

product line then their sales would be automatically increased and

after that profit margin will increase. Then they can promote more their

product by advertising and tools like this.

GAP AnalysisGAP analysis stands for identification of GAPS in the market, which a

company can capitalized upon. This means that the difference of

customer wants, and what company is giving. The remaining portion is

called GAP Analysis. GAP Analysis for company is given below.

If we compare Nestle with Aqua. Then we would come to know that

Aqua Fina is providing mineral water of different tastes in USA. And

sooner it would introduce mineral water of different tastes in Pakistan.

But if we see Nestle, it’s only giving pure water of one taste. As

customer wants different taste in water. So this is GAP analysis

between company and customer. Major difference is of different

segments. So Nestle should introduce different tastes in water to meet

customer requirements.

Problems according to the company:

Nestle is very much afraid of current economic condition of Pakistan as

the company is willing to become the $1 Billion enterprise till 2014.

Solution:

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Nestle should contact to the main head quarter situated in Switzerland

for financial, economic, strategic support so that the goals of Nestle

Pakistan could be achieved. One more thing that is possible that

company should made some agreements about their business plans so

that the company could able to work with stability.

The group is willing to enhance its product line but due to some

internal and external reasons along with security, the company is

facing the shortage of producing certain products which have demand

in the market.

Solution:

The company should buy the existing plants by any mean in Pakistan

to fulfill the demand of market. Because to setup a new plant can be

costly for the company. It is also possible that company should work

with other small companies to meet the demand. There should be very

low probability of loss on the goods as the brand image is so strong in

Pakistani market about Nestle.

Problems according to the group analysis:

The company should make huge expenses on advertisement in rural

areas of Pakistan to create awareness in the mind of local area's

people.

The company should held seminars and meeting for the promotion of

Nestle Pure Life.

Strategies recommended for rectifying problems:

They should increase their product quality as now a day they are facing

problem of impurity of their products. They have to improve the

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marketing strategies. So that they can capture market and improve

their sales.

Conclusion:

Nestle is the world leader in FMCG industry. People trust on the

products launched by the company even the product is facing some

problems.

Nestle was doing its good job in past but now it is facing some

problems of low quality of their products. Nestle is sued by someone

they claim that they are doing unethical business. They are mixing

unhygienic things which can cause damage to customer’s health. Its

example is that their water is not pure and good for health. You can see

dust partials in Nestle mineral water when you keep it in sunlight that

shows its product quality is down. Now they have to do more making

their strong position in market because when you lose your image in

customer’s eye then it is difficult to renew their image.

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