UNDERSTANDING THE IMPORTANCE OF THE ROLE

AND FUNCTIONS OF MARKETING, ESTABLISHING

CUSTOMER RELATIONSHIPS AND DEVELOPING THE
APPROPRIATE MARKETING MIX ELEMENTS FOR
ORGANIZATIONAL SUCCESS

Prepared By

A.S.R. Abeysinghe

0000039276

SLIM Business School Colombo

September

Preliminary Certificate in Marketing

SRI LANKA INSTITUTE OF MARKETING
 Assignment Marking Scheme – PCM III – 2019
(For the use of the examiners only)

Programme Preliminary Certificate in Marketing

Examination PCM III 2019
Understanding the Importance of the role and functions of
Assignment Topic marketing, establishing customer relationships and developing
the appropriate marketing mix elements for organizational
Student Registration Number success
(to be filled by the students)

Allocation of marks (Please Use only a RED PEN from this point onwards)

Area of evaluation Weightage Marks Awarded

Task 01 10%

Task 02 25%

Task 03 30%

Task 04 15%

Following assignment guidelines 20%

Total 100%
Final marks of evaluation

Overall comments by the examiner

100
Signature of Examiner Signature of
& Date Education officer

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Assignment

This Report is Individual Assignment of SRI LANKA INSTITUTE OF MARKETING

Preliminary Certificate in Marketing.

Intake III 2019 September.

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Table of Contents

1 History of The Company .......................................................................................................... 1

2 Product Portfolio ...................................................................................................................... 2
2.1 Dairy - Milkmaid .............................................................................................................. 2

2.2 Beverages - Nestomalt ...................................................................................................... 2

2.3 Food – Maggi noodles ...................................................................................................... 2

3 What is Marketing .................................................................................................................... 3

3.1 According to Nestle Lanka Company, Key functions and activities of Marketing .......... 3

4 Nestomalt.................................................................................................................................. 5
4.1 Under the Marketing Mix Concept Nestomalt Brand....................................................... 5

4.2 Product.............................................................................................................................. 5

4.3 Price .................................................................................................................................. 7

4.4 Place ................................................................................................................................. 8

4.5 Promotion ......................................................................................................................... 9

5 Importance of Packaging ........................................................................................................ 11

6 Key Functions of Packaging & Relationship to Nestomalt .................................................... 12
7 Conclusion .............................................................................................................................. 13
8 Recommendations .................................................................................................................. 14
9 Annexure ................................................................................................................................ 15
10 References .......................................................................................................................... 19

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Executive Summary
Nestle Company was founded in Sri Lanka more than a decade ago. Today Nestle Lanka
PLC is one of Sri Lanka’s leading Food and Beverage products. Works with the aim of
delivering quality and healthy products. There are many product categories, which
specialize in Food, Beverage and Dairy. These products include Milkmaid, Nestomalt and
Maggi Noodles, which are the island’s top market products. These products have been
successful in each market, looking at the target markets they have produced. The behavior
of this Company for the marketing and its functions and the growth in marketing is evident.
The Nestle Lanka PLC Nestomalt product can be found in detail in the marketing mix.
When it comes to product, price, place and promotion Nestomalt seems to be a success in
marketing mix. In addition, The Nestomalt product is of the highest quality with the
important of the package and its functions.

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Introduction
According to the history of the institute nestle Lanka was established over a decade ago.
Its history and present status, Vision and Mission are explained here. Nestle Lanka the
company has introduced three specialty selections from a range of product categories
namely Nestomalt, Milkmaid and Maggi Noodles which are included in Milk, Dairy and
Beverage and their target markets are explained.

What is marketing? It described its definition and outlines its main functions based on
this company. As well as it has shown the company need to grow in the field of marketing.
Of the selected products, selected one product (Nestomalt) and describe this product under
the marketing mix concept. So, there explain product, price, place and promotion and how
does Nestomalt product work in these factors.

Finally, described importance of packaging and briefly explain five (05) functions of
packaging under the Nestomalt Product

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1 History of The Company

Delivering a promise of

‘Good Food, Good Life’

Nestle is a Swiss Company in the Food, Beverage, Nutrition and Wellness business.
Nestle Company’s History begins in 1866 with the foundation of the Anglo-Swiss
Condensed Milk Company. Henri Nestle develops a breakthrough infant food in 1867, and
in 1905 the company he founded merges with Anglo-Swiss, to from what is now know as
the Nestle Group. During this this period cities grow, and railways and steamships bring
down commodity costs, spurring intentional trade in consumer goods.

Nestle established its presence in Sri Lanka more than a century ago, Commencing as a
trading Company in 1906 with condensed milk and Infant Food Products. Reinforcing our
roots in the island, nestle became a public-quoted company in 1983 and commenced
commercial production in 1984.

Today, Nestle Lanka is one of the leading Food and Beverage company in Sri Lanka.
Providing direct employment to almost 1200 people and positively impacting the
livelihoods of over 23000 Distributors, Suppliers, Farmers and their Families.

Vision

To bring consumers foods that are safe, of high quality and provide optimal nutrition to
meet physiological needs. In addition to Nutrition, Health and Wellness, Nestle products
bring consumers the vital ingredients of taste and pleasure.

Mission

Make better Food so that people live a better life

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2 Product Portfolio
Today, The Nestle Lanka company has divided their product in to 6 categories. Those
are Dairy, Beverages, Food, Nestle Nutrition, Breakfast Cereals, Chocolate &
Confectionery. They are classified according to the nature of their products. As well as also
Nestle Lanka has a very high-end product group. Each of these categories has introduced a
lot of their products. Out of these 6 categories, 3 are Products in Three categories further
described.

2.1 Dairy - Milkmaid

The Nestle Lanka company’s dairy Category included
Milkmaid. Milkmaid has been a household dessert favorite. It
used to make Cakes, sweets, to make different type of Drinks,
As well as use as an ingredient for countless desserts,
beverages and toppings.

Milkmaid Product Target Market is the Household Sector. They

buy this product for family parties, Having fun with friends. Therefore, Women often buy
in homes.

2.2 Beverages - Nestomalt

The Beverages category included Nestomalt. Nestomalt is
an iconic malted food drink brand. Nestomalt use to drink cup
of tea in the morning. Nestomalt use the people who work
during their tea times.

Nestomalt Target market is Women at home most of the time.

Because they make tea in the house. And also, the people who work.

2.3 Food – Maggi noodles

The Company’s Food category included Maggi Noodles. Maggi
noodles is a noodles pack who make quickly. Maggi noodles
use household for their children breakfast, as in a quick hunger
strike, most of the time school children use this noodle. Maggi Noodles

Target market are Children of school age, they use these noodles for their meal. And
also, Mothers.

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3 What is Marketing

Today, Marketing is essential in the business world. Marketing is The Sense of

Identifying and Satisfying Customer Needs. Develops products that provides superior
customer value; and prices, distributes and promotes them effectively, these products will
sell easily. For Business Marketing is how to satisfy and delight the customers and build
long-term relationship.

Different people and Organizations have defined what marketing is? Of those, Father of
Marketing Defined as

Marketing is the process by which companies create value for customers and build
strong customer relationship in order to capture value from customers in return.

(Phillip Kotler/Gary Armstrong)

3.1 According to Nestle Lanka Company, Key functions and activities of Marketing

There are 10 Key Functions in Marketing, These Functions are arranged in the Nestle Lanka
Company.

1. Under the identification of the customer requirements many products have been
introduced to the market to suit these requirements.
2. In addition, under the satisfying and delighting customers all are made of the highest
quality and standard.
3. Identifying lucrative emerging market opportunities, introducing new successful
products into the market and applying new market strategies.
4. Accurate consumer targeting has created products for a variety of consumer groups,
such as Children, Housewives, People who work.
5. It also facilitates the exchange relationship by providing various concessions to the
consumers when purchasing the product.
6. Nestle Lanka Company is one of the leading companies in the dynamic
environment, adapting to the changing environment.
7. Using existing resources efficiently and effectively produces products.

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 8. Nestle Lanka Company uses a variety of ways to differentiate a product or service
from its competitors. Their brand name is also very important for that.
9. Improving profitability through customer satisfaction through the supply of quality
Nestle Products.
10. Nestle Lanka has always committed to creating value for the customer and the
organization and in their vision. Nestle Lanka has been successful in Sri Lanka due
to its high quality and being one of the world’s leading one of the world’s leading
conglomerates.

Marketing Orientation – The Nestle Lanka PLC should think about Customer
satisfaction & Long-Term customer relationship. Under the marketing-oriented position,
they can try improving their customer satisfaction & relationship. They can do research the
customer’s perception of the company. That way they can identify customer needs and
wants, introduce new products or build customer relationship through other means.

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4 Nestomalt
4.1 Under the Marketing Mix Concept Nestomalt Brand
Nestomalt was first developed by Nestle in Australia and later introduced to our island.
A uniquely Sri Lankan product that has been a household name in the country since 1960s.
under the marketing mix concept Nestomalt product.

4.2 Product
This is a Tangible and Physical Product. In a Product classification this product included
Consumer Products under Convenience Products of Staple Goods. And the Product Life
Cycle this Product is in Maturity Period.

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Name Nestomalt

Features Nestomalt is the Iconic Malted food drink. It mainly

energizing and nutritious enhancer with the nation’s staple
drink, tea and also a type of milk power containing malt and
easy to make. Nestomalt bringing ‘Power Strength &
Energy’

Quality Nestomalt is the Nestle Lanka’s biggest brand. It

combines 8 vitamins and 4 minerals with enriched levels of
vitamin B, vitamin C and Calcium, which help optimize the
conditions for the release of energy from Carbohydrate,
Protein. Nestomalt contains ACTIGEN-E a combination of
8 vitamins.

Packing Can be seen in various packages and the pack is

beautifully crafted in yellow. Nestomalt has a package that is
quickly identifiable, secure and full of all details. 6 packages
are included in Nestomalt packaging collection. Those are,
400g Bag in box, 400g Super Pack, 400g Tin, 180ml Ready
to Drink Pack, 175g Bag in Box and 28g Sachet.

Sizes Can be seen in various sizes in Nestomalt food Drink.

Those are 400g, 180ml, 175g and 28g. Nestle Lanka
Company introduced these sizes for easy to use Nestomalt
for Sri Lankan Household.

Variety Nestomalt Food Drink is special for other competitors

because their Nutrients. Their packaging is very attractive,
and they continue big promotion campaign for their product.

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4.3 Price
Since Nestomalt is a Consumer Product, the Market is at current prices.

Prices Prices of Nestomalt Packaging Collection

400g Bag in box 345/=

400g Super Pack 340/=

400g Tin 425/=

180ml Ready to Drink Pack 50/=

175g Bag in Box 170/=

28g Sachet 25/=

Pricing Strategies As a Consumer product The Nestomalt Product has Cost-

based Pricing system. So, Nestomalt is selling Market Price.

Discounts Cash Discounts – Nestomalt offers discount on Cargills

Super Markets 50% on Sunday 17th June this year 400g
Super Pack. Weekend Waassi offers 15% savings on Laugfs
Super Markets.

Quantity Discounts – The 425g pack was delivered to the

customer, giving 25g for the price of 400g.

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4.4 Place
Coverage Strategies Nestomalt Product has Intensive Distribution. So, the
product is placed in as may outlets as possible and no
interested intermediary is barred from stocking product. So
available to customers, it takes minimal time and effort to
purchase.

Channels Which moves Nestomalt from the producer to the retailers

and then to consumers. Large retailers buy large quantity in
manufacturer (Ex: Keels, Cargills, Arpico Super Centers)

Inventory According to the Nestle Lanka PLC 2017 Annual Report

Total Stock is 18.5% of Total Assets. Generally, the stock
ratios of a Nestomalt product should be similar, since the
stock ratios of the same products are equal.

Locations The Nestomalt Product is available in retailers Island wide.

Transportation Nestle Lanka Company offers the product to customers

without any harm. Transportation mode is Road Transport.
They use trucks for distribution.

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4.5 Promotion
Advertising Nestle Lanka Company has a very big advertising
campaign for this product. Mainly they use Reminder
Advertising. So, they made their advertisements based on
reminder advertising so, other advertising objectives come
into play automatically. They always use the media to make
the product memorable to the consumer.

The use all types of media for their advertising campaign.

Print, Broadcast, Outdoor, Transport, Digital and Cinema.
However, mostly used Broadcast advertising.

Sales Promotion Discount Coupons & Temporary Price Reductions -

Nestomalt offers discount on Cargills Super Markets 50% on
Sunday 17th June this year 400g Super Pack. Weekend
Waassi offers 15% savings on Laugfs Super Markets.

Competitions & Extra free - The 425g pack was delivered

to the customer, giving 25g for the price of 400g. Offer
Nestomalt “Kootiyaka Raththaran” promotion by mailing
upper part of the 400g packet. AS well as offer Singapore
Travel for family. Offer the Nestomalt “Ran Ratha Waasana”
promotion by mailing Package of 400g.

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Public Relations Sponsorships - Nestle Lanka’s Nestomalt Product is
Sponsored sponsoring many Sports events like Marathons,
Nestomalt “wjqreÿ l%Svd” and also sponsoring Shows and
many Cultural Events such as Vesak Festivals, New Year
Festivals etc.

Specially I’m a
University student.
I personally know
Nestomalt
Sponsoring Lot of
University Talent
Shows. Nestomalt sponsoring the
“Nethin Ethera” Talent Show we organized. They help with
this kind of work as soon as call them. It’s very
helpful create their good image.

Public Service Activities – Steps were

taken to provide relief to the people affected
by recent adverse weather conditions. Their
lorries were provided for transportation, People
were given aid.

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5 Importance of Packaging

Packaging is defined as “all the activities of designing and producing the container or
wrapper for a product”.

(Philip Kotler – 13th edition)

Packaging is very important to glamorize product in order to attract the consumer’s

attention. Sometimes packaging is so important that it cost more than the product itself in
order to lure the consumers to buy it. The right packaging can be helping a brand carve a
unique position in the marketplace and in the minds on consumers. In addition, the good
different package differentiates our brand from others & Packaging color sways consumer
purchase habits. Example: Nestomalt package colour is yellow it sways consumers & this
package differentiate form other malt products. Product’s packaging can be a helpful
marketing tool through instore advertising. Branded product is easily recognized. So,
packaging creates brand recognition.

In addition, protection of the goods inside, assist in promotion, providing machine

identification (barcodes, etc.) impart essential additional information, help in utilization
and consumption, Used for track and trace purpose.

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6 Key Functions of Packaging & Relationship to Nestomalt

❖ Protection of contents from damage, deterioration or tamping.

The Nestomalt Product has six packages. The main package is 450g Bag in Box. Their
package is designed to protect the product from damage. The polyethylene cover covering
the product is strong and sealed with no ventilation inside. Also covered with a cardboard
box or packed in a sturdy tin.

❖ As a promotional tool – by packaging attractively a marketer can get attention and

interest of the customers.

Nestomalt package is very attractively. Because of the yellow colour and the creativity
it produces, anyone who see it suddenly turns to the product. With colour combinations and
the way the package is designed, the customer’s attention and interest can be easily
captured.

❖ Instant Recognition of the Brand

The Brand name and Product name are clearly and adequately used on the left side of
the pack. So, it helps to instant recognition of the brand. Everyone knows that Nestomalt is
in the Nestle Company.

❖ User Convenience – Storage and carrying

This product is very easy for the customer to use. Because, the maximum weight is 400
grams and is easy to carry. Due to the average size of the package, it does not require much
space.

❖ Management Information as Bar Codes can be used to Track Sales.

The Bar Code is printed on the lower part or lower profile side of the Nestomalt Package.
It can be use track sales. The most commonly used bar code is computerized and marketed
by scanning.

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7 Conclusion
Under the field of marketing, one of the Sri Lanka’s leading company Nestle Lanka is
described in detail. Such as History, Vision and Mission. A study of marketing and its
functions, Marketing Mix and Packaging concepts shown here. By practicing these factors
in an organization, can see the marketing success of this organization. As such, these
companies are well involved in the marketing process. This is evident from the selection of
products and the Nestomalt product which is studied in depth. It should be noted that Nestle
Lanka PLC can be more successful in marketing field.

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8 Recommendations
 Nestle Lanka guarantees the quality of the Nestomalt product. But a certificate
from a reputed institute does not appear in the packaging. And the seriousness of it
can be seen in competitors’ products. Consumers are very concerned about these
factors. So, I recommend if there are quality standards (ISO, SLS) it is best to
display in the package. If there is another reason, the public should be made aware
of it.

 One thing I’ve noticed is that the product is highly advertised on the advertising
side. But it’s all advertising campaigns are going the same way. Ex “Dawasa patan
gamu”, “Ranwan kiri saaraya sapiri”. So, I recommend it would be nice to do a little
bit of change. Such as, compared to Nestomalt product better than competitors. And
also, Nestomalt has a great history. Nestomalt was introduced much earlier than
other malt products. So, can be include these things for advertisements. It would be
better if they were based on persuasive advertising.

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9 Annexure

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10 References

1. Google. (n.d.). Retrieved from Google Images : http://www.googleimages.com

2. Nestle Lanka PLC. (n.d.). Retrieved from Nestle Lanka PLC Web Site:
http://www.nestlelanka.com
3. PLC, N. L. (2018). Annual Report. Colombo: Nestle Lanka PLC.
4. Sylvester, G. S. (2019). Preliminary Certificate in Marketing Study Kit. Colombo:
Sri Lanka Institute in Marketing.

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