Nestl (Nestl Pure life)

Nestl was founded in 1866 by Henri Nestl and is today theworld's biggest food and beverage company. Sales at the end of 2005 were CHF 91 bn, with a net profit of CHF 8 bn. Nestlemploy around 250,000 people from more than 70 countries andhave factories or operations in almost every country in the world.The history of Nestl began in Switzerland in 1867 when Henri Nestl, the pharmacist,launched his product Farine Lacte Nestl, a nutritious gruel for children. Henri used hissurname, which means little nest, in both the company name and the logotype. The nest,which symbolizes security, family and nourishment, still plays a central role in Nestls profile.Since it began over 130 years ago, Nestls success with product innovations and business acquisitions has turned it into the largest Food Company in the world. As theyears have passed, the Nestl family has grown to include chocolates, soups, coffee,cereals, frozen products, yoghurts, mineral water and other food products. Beginning inthe 70s, Nestl has continued to expand its product portfolio to include pet foods, pharmaceutical products and cosmetics too.Today, Nestl markets a great number of products, all with one thing in common: thehigh quality for which Nestl has become renowned throughout the worldThe Company's strategy is guided by several fundamental principles. Nestl's existing products grow through innovation and renovation while maintaining a balance ingeographic activities and product lines. Long-term potential is never sacrificed for short-term performance. The Company's priority is to bring the best and most relevant productsto people, wherever they are, whatever their needs, throughout their lives.Taste of Nestl in each of the countries where Nestl sell products. Nestl is based on the principle of decentralization, which means each country is responsible for the efficientrunning of its business - including the recruitment of its staff Mission Statement Nestl's business mission 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.

Motto of Nestl is Good Food, Good Life.

Objectives

Nestl does not favor short-term profit at the expense of successful long-term

business development.

Nestl 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.

Nestl 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.

Nestl 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.

Nestl continues to maintain its commitment to follow and respect all applicable

local laws in each of its markets.

Product is something that is offered to the market. NPL product strategy studies show that they are positioning the product with respect to its attributes that NPL is safe, pure, refreshing and healthy water. Nestl also does product line expansion; recently it has offered a 0.25 liter bottle of NPL in the market. Its also using the company name with its product name i.e. Nestl Pure Life. NPL round shape and elegance of the bottle are instantly recognizable. Quality is cornerstone of NPL success. Nestle people say: Quality is our more successful product and it is key to our success today and tomorrow.

Price: Nestle has adopted the strategy of non-price competition. It is offering one price for NPL to all cities of Pakistan. It also keeps the check on distributors to maintain single price of NPL. It offers trade discounts to its distributors. Placement: Placement is the distribution of the product to its customers at right time, in right quantity, at right price and at right place. To ensure this, channel adopted by the Nestl for distribution of NPL is as follows: Producer Wholesaler Retailer Consumer

NPL comes under the category of FMCG, so for this the timely supply is very important thats why Nestl is following intensive distribution strategy. Promotion: Promotion is the very important and crucial element of marketing strategy as through it the company establishes its image in the minds of the customers. NPL is promoted by using different ways of promotion. Advertisement of NPL is done through TV, radio, billboards, newspapers and magazines. Current advertising slogans are that NPL is trust, hope and happiness and JIYO! Kay yahi hay Zindagi. Nestl also conducts the tradeshows, concerts, events, sponsorships, and discounts for sales promotion. For establishing public relations, Nestl distributes its newsletters, annual reports, calendars and diaries, lobbying, donation for charitable and civic events. For the victims of 8th October 2005 earthquake, Nestl has donated 90 trucks, which were containing different foods items, and NPL was one of them which is around Rs. 2 Billion. The Nestle organized its teams to distribute products to the effected areas and all employees contributed from top to bottm (MD himself was involved personally to distribute products physically)

For each target market, management must design a Marketing strategy, which includes the designing of the marketing mix. The Marketing Mix is the combination of multiple aspects of the following four elements: a product, how it is distributed and promoted, and its price. These four elements are intended to please the target market(s) and, equally important organization marketing objectives. The Company's strategy is guided by several fundamental principles. Nestl's existing products grow through innovation and renovation while maintaining a balance in geographic activities and product lines. Long-term potential is never sacrificed for short-term performance. The Company's priority is to bring the best and most relevant products to people, wherever they are, whatever their needs, throughout their lives. Nestl is committed to the following Business objectives in all countries, taking into account local legislation, cultural and religious practices:

Nestl'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.

Nestl does not favor short-term profit at the expense of successful long-term

business development.

Nestl 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.

Nestl continues to maintain its commitment to follow and respect all applicable

local laws in each of its markets. To achieve these objectives the product, price, place and promotion strategies for Nestl Pure Life are as following: Product Strategy Anything offered to a market for attention, acquisition, use, or consumption that might satisfy a need or want.

Product is set of tangible and intangible attributes, including packaging, color, price, manufacturing, prestige, retailing, services, etc. which the buyer may accept as offering want is satisfied. Nestl is offering the products, which comes under the category of fast moving consumer goods (FMCG). Nestl is committed to offering consumers high-quality food products that are safe, tasty and affordable. The Nestl Seal of Guarantee is a symbol of this commitment. To be successful in marketing, producers must need carefully planned strategies for their products. Now the question is that how Nestl has planned the product strategies for NPL. Positioning the Product In relation to the attribute Nestl is positioning its water as pure and safe water, which is essential to good health. They say that Trust Nestl Pure Life and also Nestl pure life is Happiness, Hope and Trust, this is the message which they are giving in their advertising campaign. Nestle also claims that NPL is Pakistans favorite water and currently their slogan is JIYO! kay yehi hay zindagi. On basis of these, it is said that Nestl is positioning in relation to the attribute and quality of the product. Its basic foundation is unchanged from the time of the origins of Company, and reflects the basic ideas of fairness, honesty, and a general concern for people. Product Line Expansion Product line expansion is accomplished by increasing the depth (variety of sizes, colors, models) within the product line. Nestl is offering variety of sizes in NPL product line, which are as follows: Retail line:

1.5 liters 0.5 liters 0.2 liters (Recently launched) Home and Office Line: It is also comes under Nestl Bulk category. 3 Gallon 5 Gallon The year 2005 saw the successful completion of yet another year of outstanding business for NESTL PURE LIFE both in retail with 0.5 and 1.5liter bottles with the introduction of a new product i.e. 0.2 liter bottle and direct home and office delivery with 19 liter bottles. The exceptional performance of the brand is the result of expanding national distribution and an increasingly loyal customer bases. The brand has revolutionized the Pakistani market by tapping the real consumer need for pure, safe and healthy water and has successfully dominated a key strategic business in Pakistan. Branding A brand is a name and/or mark intended to identify the product of one seller or group of sellers and differentiate the product from competing products. Branding reduces the price competition. Nestl is using following branding strategies: