Nestle Marketing Plan
Nestle Marketing Plan
Nestle Marketing Plan
Executive Summery
Introduction Of Nestle
Nestlé’s Vision:
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 solutions, Nestle contributes to your well-being
and enhances your
quality of life.”
good food
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
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.
SMART Analysis
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
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
Finance manager
The field of finance covers the economics of the
contingent claims. Financial economists study the valuation
of these 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
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.
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.
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 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…
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.
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
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
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.
STRATEGIES FOR COMPETITIVE ADVANTAGES
Marketing Financials
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 Analysis
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.