CONTENTS

EXECUTIVE SUMMARY.................................................................................................. 3
HISTORY....................................................................................................................... 4
MISSION STATEMENT.................................................................................................. 5
NESTLE BUSINESS OBJECTIVES................................................................................ 5
NESTLE PRODUCTS..................................................................................................... 5
CUSTOMER ORIENTATION.......................................................................................... 5
MARKETING ENVIRONMENT........................................................................................ 5
NESTLS MICROENVIRONMENT............................................................................. 5
NESTLS MACRO ENVIRONMENT........................................................................... 5
MARKETING OFFERING............................................................................................... 5
EFFECT OF EXTERNAL ENVIRONMENT ON NESTLE DELICIOUS JAM........................5
MARKETING RESEARCH AND MARKETING INFORMATION.........................................5
OBSERVATION.......................................................................................................... 5
EXPERIMENT............................................................................................................ 5
SURVEY.................................................................................................................... 5
MARKETING STRATEGY............................................................................................... 5
MARKET SEGMENTATION............................................................................................ 5
GEOGRAPHICAL SEGMENTATION............................................................................ 5
DEMOGRAPHICAL SEGMENTATION.........................................................................5
TARGET MARGET......................................................................................................... 5
VALUE PROPOSITION................................................................................................... 5
NESTLE LOGO & FAMILY BRAND.......................................................................5
COMMUNICABLE............................................................................................... 5
CONSUMER BEHAVIOUR.......................................................................................... 5
CUSTOMER RELATIONSHIP MANAGEMENT................................................................5
STRATEGY FOR CAPTURING VALUES..........................................................................5
PRICE........................................................................................................................ 5
PRICING OBJECTIVES.............................................................................................. 5
FACTORS AFFECTING THE PRICE OF NESTLE JAMS...............................................5
PLACE....................................................................................................................... 5
1

RETAILING................................................................................................................... 5
RETAILERS CLASSIFIED BY MARKETING STRATEGIES...........................................5
CHANNEL OF DISTRIBUTION....................................................................................... 5
VERTICAL MARKETING SYSTEM.............................................................................. 5
MULTIPLE DISTRIBUTION CHANNELS......................................................................5
PROMOTION............................................................................................................. 5
STRATEGIC PLANNING................................................................................................ 5
BCG MATRIX FOR CURRENTLY PRODUCING SBUS.................................................5
DEVELOPING STRATEGY FOR GROWTH AND DOWNSIZING....................................5
SWOT ANALYSIS OF NESTLE JAM............................................................................... 5
STRENGTHS............................................................................................................. 5
WEAKNESS............................................................................................................... 5
OPPORTUNTIES........................................................................................................ 5
THREATS.................................................................................................................. 5
RETURN ON INVESTMENT (ROI).................................................................................. 5
MARKET IMPLEMENTATION........................................................................................ 5
CONCLUSION................................................................................................................ 5
REFERENCES................................................................................................................ 5

EXECUTIVE SUMMARY
Our marketing project is about launching a new product
which is Nestle Delicious Jam, bring happiness in life. Nestle is not
producing jam currently. So we will introduce this product 1 st time
in market. The marketing plan for this purpose consists of many
strategies that we will use. We will compete the market because
our product will offer a unique combination of features e.g.
different flavors, bottle design, nutrients etc at a value added
price. Its target market will include all people but specially the
children. It will be available in all possible flavors and reasonable
price will be offer for Nestle Delicious Jam. The product life cycle
will start from the maturity stage by providing more values in
beginning. We will use corporate vertical marketing system for
Nestle Delicious Jam.

HISTORY
1866-1905

In the 1860s Henri Nestl, a pharmacist developed 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 Nestl's new formula
saved the child's life, and soon, Farine Lacte Henri Nestl was being sold in
much of Europe.

1905-1918
In 1905 Nestl merged with the Anglo-Swiss Condensed Milk
Company. By the early 1900s, the company was operating factories in the
United States, Britain, Germany and Spain. World War I created new demand
for dairy products in the form of government contracts. By the end of the war,
Nestl's production had more than doubled.

1918-1938

After the war Government contracts dried up and consumers switched

back to fresh milk. However, Nestl's management responded quickly,
streamlining operations and reducing debt. The 1920s saw Nestl's first
expansion into new products, with chocolate the Company's second most
important activity.

1938-1944
Nestl felt the effects of World War II immediately. Profits dropped from
$20 million in 1938 to $6 million in 1939. Factories were established in
developing countries, particularly Latin America. Ironically, the war helped
with the introduction of the Company's newest product, Nescaf, which was
a staple drink of the US military. Nestl's production and sales rose in the
wartime economy.

1944-1975

The end of World War II was the beginning of a dynamic phase for
Nestl. Growth accelerated and companies were acquired. In 1947 came the
merger with Maggi seasonings and soups. Crosse & Blackwell followed in
1960, as did Findus (1963), Libby's (1971) and Stouffer's (1973).
Diversification came with a shareholding in L'Oral in 1974.

1975-1981
4

Nestl's growth in the developing world partially offset a

slowdown in the Company's traditional markets. Nestl made its
second venture outside the food industry by acquiring Alcon Laboratories Inc.

1981-1995
Nestl divested a number of businesses1980 / 1984. In 1984, Nestl's
improved bottom line allowed the Company to launch a new round of
acquisitions, the most important being American food giant Carnation.

1996-2002

The first half of the 1990s proved to be favorable for Nestl: trade
barriers crumbled and world markets developed into more or less integrated
trading areas. Since 1996, there have been acquisitions including San
Pellegrino (1997), Spillers Petfoods (1998) and Ralston Purina (2002). There
were two major acquisitions in North America, both in 2002: in July, Nestl
merged its U.S. ice cream business into Dreyer's, and in August, a USD 2.6bn
acquisition was announced of Chef America, Inc.

2003 +
The year 2003 started well with the acquisition of Mvenpick Ice Cream,
enhancing Nestl's position as one of the world market leaders in this product
category. In 2006, Jenny Craig and Uncle Toby's were added to the Nestl
portfolio and 2007 saw Novartis Medical Nutrition, Gerber and Henniez join
the Company

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 wellbeing and enhances your quality of life.
Nestle is not only Switzerland's largest industrial company, but it is also
the World's Largest Food Company. The mission statement emphasizes on the
fact that Nestle products are available in nearly every country around the
world. Wherever one may live, only Nestle can provide the best and most
reliable food and beverage products to meet his/her needs throughout the
day, throughout the life. Especially, people on the move want to be able to
find good food wherever they are, whatever the time of day. They are often
reassured that they will find well-known brands out of home. This statement
also reflects the image of high quality products that Nestle offers. Nestle has
5

the advantage that it offers caterers, fast food chains and other
restaurants a complete range of high quality ingredients, base
products and meal components, as well as leading consumer brands such as
Nescafe. Quality is the cornerstone of the success of the Nestle Company.
Everyday, millions of people all over the world show their trust in the
company by choosing Nestle products. This trust comes from a quality image
that has been built up for over a century. Therefore, the quality of the
products ultimately enhances the quality of the consumers life. In addition,
the mission statement declares that Nestle has the ability to anticipate
consumers needs and create solutions. Nestle has proven this ability a
number of times by introducing new products that were required by
consumers.

NESTLE BUSINESS OBJECTIVES

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. So the needs & wants of consumers
should be considered.
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.

NESTLE PRODUCTS
Nestle is a well-known company all over the world and
Pakistan. The company basically deals in food products as
their logo says Good Food, Good Life. Their major products
lines are:

MILK PRODUCTS
1) NESTLE MILKPAK UHT MILK

This product was launched in 1981. Backed by a very strong brand

name, aggressive marketing and distribution plan, consistent quality, and
availability throughout the year,
it has become quality milk. In September 1999, Milk Pak UHT milk was
launched as Nestle Milk Pak UHT milk. It is available in 1000, 500 and 250 ml
sizes.

2) MILKPAK BUTTER
This product was launched in 1985 under the Milk Pak brand
name. It has been recently repackaged in a crisp white laminate,
the design of which bears closed resemblance to that of Milkpak
UHT milk. This new package design allows gaining strength from
Nestle Milkpak UHT milk. It is available in 200 and 100 gm sizes.

3) MILKPAK UHT CREAM

This product was launched in 1986 under Milkpak brand name. It is

available in 200 ml size.

4) MILKPAK DESI GHEE

This product was launched in 1986. It is available in 1000
ml size and is leading branded desi ghee in the country.

5) NESTLE EVERYDAY

To meet the requirements of the tea-whitening segment, this product

was launched in 1992. On account of aggressive marketing, focused
distribution, excellent consumer acceptance and product quality, this brand
has shown strong growth and holds good promise for the future.

6) NESTLE NIDO
Soon after it was introduced in the early 70`s as an imported product,
Nido full cream milk powder became the market leader. Local manufacturing
7

of Nido began in 1990, which has reinforced its position as the

dominant player in the full cream milk powder category.

CHOCOLATE DRINKS
1) MILOPOWDER

This product was launched in 1994. It is available in 14,100 and 200 gm

sizes. It is strongly associated with a healthy life style and is an ideal drink for
growing children who need strength and energy.

2) MILO RTD
To cater for consumer convenience, Milo RTD (ready to
drink) was launched in 1995 and is now available in an
attractive 180 ml slim pack. It is popular among all age
groups especially among the growing segment of nutrition
conscious consumers. It is an excellent substitute for cold
drinks.

COFFEE
1) NESCAFE CLASSIC

It is one of the worlds most popular coffee brands.

Nescafe global campaign open up was launched in Pakistan in
October, introducing a new brand framework and increased
emphasis behind coffee sales in Pakistan. Nestle Milkpak locally
packs imported coffee and markets it in 225 and 500gm.

FRUIT DRINKS
1) FROST
It is a well-known brand launched in 1986 and has the
largest market share.
Positioned as a cold drink and an
alternate to cola drinks, its strength lies in the convenience
attached to its usage.

2) NESTLE ORANGE JUICE

The product was launched in July 1996. It is available in

180ml and1litre sizes. In a market that is becoming increasingly conscious
about nutrition and is displaying preference for healthy drinks, Nestle Orange
Juice has made very good inroads and has a strong potential in the future.

DIETETIC & INFANT PRODUCTS

1) LACTOGEN
8

Lactogen 1 and Lactogen 2 are infant and follow-up

formulae launched in 1991 and are available in two sizes both
pack and can. The brands provide both affordability and quality.

2) CEREALS

Launched in 1989, it is the dominant player in the growing infant food

market. It is available in 5 flavors and provides balanced nutrition to infants.

3) NESTLE RICE
An affordable starter weaning cereal and offers the flexibility of
preparation with a variety of meals. This was launched in
1994 and available in125ml pack size.

4) NESTLE WHEAT

Nestle wheat is a wheat-based infant cereal without

milk. It is available in 125 and 200 gm pack sizes.

5) NESLAC
Neslac is a growing up milk, formulated specially for 1 to 4 years old. This
was launched in 1994. It contains a right balance of proteins, calcium, iron,
vitamins and essential minerals in order to cater nutritional needs of growing
children.

CULINARY PRODUCTS
1) MAGGI 2-MINUTE NOODLES

Fast to cook, good to eat Maggi 2Minutes Noodles were launched with local
production in 1992, and doing so Nestle
pioneered the category of instant noodles in
Pakistan. It offers flavors like chicken masala,
chili and chatkhara.

2) MAGGI COLD SAUCES

Nestle entered the Cold Sauces
category early in the year with the launch of
Maggi ketchup, Maggi mirch maza and Maggi
khatti meethi the first Emily sauces in
Pakistan. The innovative taste of Khatti meethi together with the more
traditional tastes of Ketchup and Mirch maza, were received well by the
consumers.

CONFECTIONERY
In view of the impressive potential for confectionery sales in the
country, Nestle Milkpak established an independent sales and distribution
network for confectionery products. From three main cities in 1996, it has
9

grown into a nation-wide network. The initial product range

includes locally produced Polo Mint, Kitkat, Smarties, Lion Bar,
and Foxs, Allens Toffo and Allens Soothers. Both Toffo and Soothers are
produced on a new confectionery line-based on a new state-of-the-art
technology that provides an extremely flexible process for production of wide
range of high and low boiled candies. This will enable the company to
introduce varieties of new sweet flavors over the next few years.

WATER
The launch of Nestle Pure Life in December 1998 was a truly historic
event. This marks the Nestle Pure Lifes entry into the countrys fast 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. It is ideally balanced
with essential minerals. It is available in two convenient sizes of 0.5 and 1.0
liters. 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.
Nestl 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.
Launched on the North American market in 2003, Nestl PURE LIFE is
destined to become the worlds leading and most widely distributed brand by
2010.

CUSTOMER ORIENTATION
Nestl is the customer oriented company from its foundation to till now.
In 1866 it introduced the food for babies who were unable to breastfeed, and
this formula saved the lives of many children.
Due to the customers realization over the company, Nestl's
production and sales rose in the wartime economy. The quality of the
products ultimately enhances the quality of the consumers life. In addition,
Nestl has the ability to anticipate consumers needs and create
solutions. Nestl has proven this ability a number of times by introducing
new products that were required by consumers.
Nestl is one of the few companies to have an information system that
commits the company to respond to information requested.

10

MARKETING ENVIRONMENT

NESTLS MICROENVIRONMENT
1) SUPPLIERS

Nestl is a corporate member of the National Minority Supplier

Development Council.
It has established the relationship with many suppliers. They dont
have any specific suppliers. Moreover it includes different and a large
number of suppliers for obtaining raw materials.

2) CUSTOMERS
Consumer markets are important for all organizations by marketing
perspective but for Nestle it is too important because
It is related to food and beverage industry.
Worldwide consumer markets
Consumed in the 85 countries of the world
Not only large but also dynamic
Completely focusing on changing behavior
Fictitious product will also have a consumer market

3) COMPETITORS

Every company tries to provide greater value and satisfaction than its
competitor do. Following are the main competitors of the Nestle Company Mitchells
Shezan
Rafhan
National etc
11

Threats of competition come from external environment.

To improve its Competitive position Nestle has made joint
ventures with its competitors.

NESTLS MACRO ENVIRONMENT

a) SOCIAL & CULTURAL FORCES
Nestle uses recognized safe raw materials and processes them with
minimal energy input.
An eco-friendly device is the use of perforations around labels to
make them easy to remove.
For advertising and sales promotions, it tries to reduce waste in the
POP advertising materials.
The raw material that nestle use in their products is according to our
society and Islamic culture.

b) TECHNOLOGICAL ENVIRONMENT
Currently nestle is using high technology and machinery which is one
of the key to success for the Nestle. It gives them the competitive
advantage.
Nestle uses better technology and machinery, it gives the customers
the healthy and clean environment so the consumers buy their
products more and they gain profit. With technological environment
there is no wastage of time

c) ECONOMIC ENVIRONMENT
Currently Nestle is at prosperity stage of Business Cycle. The major
economic factor which can affect the sale of Nestle products in Pakistan is
inflation.

d) POLITICAL & LEGAL FORCES

Nestle supports appropriate voluntary initiatives designed to protect
the environment.
Nestle promotes balanced environmental laws and regulations &
opposes unjustified prohibitions and other discriminatory measures.

e) DEMOGRAPHIC ENVIRONMENT
Nestle products are for everyone and for all group of people.
These products are usable by all categories of people, having
different ages but especially children

12

MARKETING OFFERING
We are making a marketing plan of Nestle Delicious Jam. The launch of
Nestle Delicious JAM in Pakistan will provide the customer with the best jam
full of nutrients. In Pakistan, the launching of delicious and appetizing JAM
with the brand name of Nestle will generate huge revenue.

EFFECT OF EXTERNAL ENVIRONMENT ON

NESTLE DELICIOUS JAM
In short, factors of macro environment affect microenvironment. The
major problem that may affect can be economic environment that
includes inflation in Pakistan which is increasing day by day. Due to
this, there is rise in price level. It can have an impact on the
customers purchasing decision. The other problems may be poverty,
unemployment, deficit, economic instabilities.
Government has their specific rules and regulations. E.g. every
product has retail price+ tax. When the new govt. changes its tax
policy, the company also changes their rules.

MARKETING RESEARCH AND MARKETING

INFORMATION
At Nestl, we believe that research can help us make better food so that
people live a better life. The role of the Nestl Research Center, is to help
fulfill Nestl's vision of making good food central to enjoying a good healthy
life for consumers everywhere. Different marketing programs are initiated and
planned for every product of Nestle. With the Blend of primary data and
secondary data Nestle formulates strategies for every product, and also for
every country of the world. Nestle use three basic methods for obtaining the
primary data.
Observation
Experiment
Survey

OBSERVATION
Nestle observes the attitudes, lifestyles and behaviors of the people
residing in every different country of the world. Nestle also observes the
major changes in the socioculture environment and hit the target through
Nestle products which are needed to be present in the market.

EXPERIMENT

As Nestle spends huge amount of money on research in Lab

experiments in order to produce and provide better taste products in
13

the market. Nestle do the experiments in order to

clearly determine the better tastes and other
ingredients and nutritions of its products. And emphasis on the Lab
experiments
Nestle keeps on investing in Research and more than 3000 people
around the world work to improve, find, and discover food that is
better for all of consumers so that consumers can live a better life.
Nestle always keeps an eye on its competitors and basically greatly
rely on competitive intelligence

SURVEY

Nestle also conduct surveys for better understanding of the consumer

behavior, and stay up to mark according to the desires of the consumers
which help in better planning and implementation of marketing mix as per
required by the domestic and international market.
So here for our new fictitious product we used this method for obtaining the
primary data. In this way we came to know about the point of view and
acceptance related to our product in the minds of people. The Survey result is
as follow

SURVEY RESULTS
1-If nestle launches jam would you
like to eat it?
a) Yes
b) No

83.26%
14.3%
14

c) not decided

2.44%

2-Nestle would like to give you a jam

in curved bottle to let you hold it
easily; would you like that?
a) Yes

84.87%

b) No

15.13

c) Not decided
3-Nestle is going to provide you a jam
with some new flavors select those
you like.
a) Apple mango
b) Mango orange
c) Strawberry apple

9.09%
52.91%
11.2%

d) Strawberry mango
e) Apple orange
4-Why do you like nestle products?

22.6%
4.2%

a) Because they are pure

b) Because they are easily available
c) Because they are best in taste
d) Because of low price

37.9%
43.6%
14.3%
4.2%

15

MARKETING STRATEGY
Nestle uses the societal marketing concept. Nestl designed and
launched the products according to the society. It meets the responsibilities of
the society. In the Muslim countries it makes sure to write Hilal at the
packaging of the products.
In the African countries Nestle build its water purification for free to provide
clean and purify water to the poor nations.

MARKET SEGMENTATION
To occupy a clear distinctive & desirable place related to competing
delicious jam in the minds of the target customers Nestle Jam will segment its
market only on geographic basis.

GEOGRAPHICAL SEGMENTATION
The Company will segment its market geographically on divisional
basis. They will divide each division in different zones and every distributor
will be restricted to sale its products only in his own zone.
E.g. Lahore will be divided into five zones like East, West, South, North,
and South west. Nestle Marketing strategies will focus on urban areas
because more of the revenue comes from that areas.

DEMOGRAPHICAL SEGMENTATION
There will be no demographic segmentation for Nestle Delicious Jam. If
we look Nestle Jam demographic segmentation, then we will find that our
product will be for everyone. People from any area, any culture, any age, any
sex, any belief and any income will purchase our Nestle Jam. It is not any
luxury item which will be used by a specific people.

TARGET MARGET
The target market will be up to 60 years of age and the core target will
be between 10-30 years of age. A specific demographic target market will not
be chosen for Nestle Jam; instead the goal is to develop a product to be used
by consumers of all ages - from babies to seniors. It will be intended as a
family product especially for families who work and have a short time for
making meal or breakfast.

16

VALUE PROPOSITION
Nestle will use some competitive advantages or important attributes
which will help in occupying a good position in consumer's mind relative to
competing jams. These competitive advantages are as follow

1) CUSTOMER ORIENTED

Customer satisfaction is the focal point for the company. They will
provide the hygienic products to their customers. Products will be verified by
health and safety measures and international quality standards. Its will
provide different flavor to the customers and different offers which will the
Nestle jam a competitive advantage.

2) NESTLE LOGO & FAMILY BRAND

Jam will use Nestle brand name and the logo of Nestle Delicious Jam
which will show family care to consumer which is enough to attract the
customer. That's why customer will give it preference on other products.

3) COMMUNICABLE

Nestle Delicious Jam will be a brand of Nestle which will show a big sign
of quality to customers. Due to its brand and name it will be very easy to
communicate.

CONSUMER BEHAVIOUR
Consumer behavior towards the Nestle Jam could be in terms of the
choice among the flavors. Some customers would choose the one
fruit flavor, while some customers would like the flavor of two fruits.
Consumers could be loyal towards their favorite flavors and could
have preference of one flavor of jam on the other flavor.
Consumers would buy the Nestle Jam keeping in mind the quality
and cost of the jam relative to those of competing products. The
consumer behavior will be more satisfactory towards the jam if the
taste and quality of the jam matches the consumers expectations.

CUSTOMER RELATIONSHIP
MANAGEMENT
Nestle jams will build profitable customer relationship by providing
them best taste best health at very best price. We are going to produce a jam
with number of important vitamins, iron, nutrition and lot and lots of health
17

and taste. We are going to give best flavors which no one

provides. We use good food colors so in short we give them
value and satisfactions to build a profitable customer relationship by letting
them feel we care.

STRATEGY FOR CAPTURING

VALUES
Our philosophy and strategy to capture values will be to
Win consumers' trust.
Understand consumers' nutritional and emotional preferences.
Serving our consumers and improving their quality of life.
Giving them value satisfaction and healthy nutrition.
Change our product according to need of customer.
Our strategy starts and ends with the consumer.
Consumer Relationship Marketing lies at the heart of Nestl Consumer
Services. We will strive to build a long-term, sustainable relationship of trust
and loyalty. We will develop our products based on consumer tastes and
preferences, we will get profit and it will generate our capital.

4Ps OF MARKETING MIX

PRODUCT
PRODUCT LINE
Nestle jam would include in
confectionaries. It is provided in different
flavors. These flavors include mango, orange,
plum, rose, apple, mix fruit, apple orange, and
mango orange.

PACKAGING
Nestle will design and produce the jam bottles and the wrappers by
keeping focus on the following purposes:
To contain and protect the food products.
For the attractiveness of the product using packing of the product as a
tool.
As nestle is relevant to food products which are highly perishable so
packaging focuses on storage and convenience.
Its packaging will be reusable by the customers.
E.g. nestle bottles obtained from bottled jam.
Packaging will be made more impressive especially by increasing the
volume of bottles.
18

LABELING
Nestle labeling will focus on persuasiveness.
Nestle will not give any expressed warranty on its daily usable Jam as it
gives on medical products
Nestle Delicious Jam's label will give all information about their product
like ingredients which will be used in it and all instructions regarding
product.
Retail price will also be shown on its label

BRAND
Nestle products use the brand name Nestle. The customer who come to
purchase nestle products, the name of this brand affects positively in the
mind of consumer. They prefer Nestle jam to other brands.

1) BRAND MARK

As Nestle is a company purely related to food industry

and it uses the symbol that includes three sparrows in nest.

2) TRADE MARK
No other company will be able to use the name Nestle for himself
because Nestle has been registered as a trade mark.

BRANDING STRATEGY OF NESTLE JAM

Nestle brand name will present a message of caring which make it
distinctive and attractive than other companies. Delicious Jam's brand is good
food for good life. The message of family protection will be enough to get the
attraction of customer. The Nestl's brand name is easy to understand &
translate. It is easy to pronounce and it is also easy to recognize. We will use
the same brand mark for our new product that is three sparrows in nests

PRODUCT LIFE CYCLE

PRODUCT LIFE CYCLE OF JAMS

If we look at jams in product life cycle then it is easy to judge that they
are at maturity stage. Because jam market has become the pioneer market
and at this stage its profit is positive and sales do not decrease because jams
companies reinvent their products in terms of packaging, labeling, and
vitamins and continue to add values into their products to capture values
from customers. There exists high competition among jams companies so
they need high distribution and promotion expenses.

19

20

PRODUCT LIFE CYCLE OF NESTLE JAM

Nestle jam will start from the introduction stage. Nestle jam will be the
market pioneer and at this stage its profit will be negative or low due to low
sale and high distribution and promotion expenses. Other major reason to be
at introduction stage may be unawareness in rural and urban areas. The
people will not be aware of the nestle jam, thats why their sale may be low.
To increase their sale they will continue to bring changes in product life cycle

by effective promotion and by formulating new price strategies etc. so it will

have a long maturity period.

PRICE
In setting the price of product, the company will follow four steps
procedure as given below
Company will establish its objectives (Survival, max. supposed profit,
revenue, sale growth etc)
Company will determine the demand schedule which will show the
probable quantity purchased per period at alternative price
Company will estimate how their costs will vary at different output
levels.
Company will examine the competitors price

PRICING STRATEGY
1) MARKETING SKIMMING & PENETRATION PRICING
This strategy is used in any company when it launched a new
product. And it offers a high price for new product to skim maximum earning
more profit and revenue and in this way company makes fewer but more
profitable sales.
21

While other pricing is used by those company which is non

branding and need to increase market share, to capture value
from customer, to attract customer when they launched new product in
market.
In our case we will use penetration pricing strategy to capture value
from customer, to attract them and to increase our share because there is a
lot of brand present in market whose product of jam is bought by people in
large amount like national, Michal n Shezan and they already have capture
market share in large amount

2) BY PRODUCT
We will use by product pricing strategy for nestle with the
penetration. We will offer kitkat to our customers in introduction phase,
because we are more focusing on children and in this way we can easily
attract people for our nestle jam.

PRICING OBJECTIVES
The objectives for pricing nestle jam are as follows:
To achieve a target return
To maximize profit
Stabilize prices to meet competition
Market share Leadership
Product Quality Leadership

FACTORS AFFECTING THE PRICE OF NESTLE JAMS

The following are the some factors that may affect the price of Nestle
Jams
Expensive technology
Miserable condition of transportation and roads
The unstable politicians, which can have positive and negative effect on
the price
The labor cost is low in Pakistan as compare to the others
Advertisement cost
Increase in taxes that may affect the price of product

PLACE
As far as the distribution is concerned, NESTLE will make segmentation
with respect demographic and geographic basis. The distribution network
needs to be more extended; NESTLE will hire more potential distributors for
the distribution of NESTLE Delicious Jam in several parts of the country so that
their product will reach to every corner of the country.

RETAILING
Retailers plays a very important role in the sale of nestle products.
Nestle does not directly its products to the end consumers.
22

Nestle has different retailers at different levels.

RETAILERS CLASSIFIED BY MARKETING

STRATEGIES
1) DEPARTMENT STORES
Mostly nestle delicious jam will be sold on the department stores.
Because these stores sell the Nestls products in a large quantity.

2) SUPERMARKETS

Nestle will sell its fictitious product on the supermarkets.

3) CONVENIENCE STORES
To facilitate the consumer nestle will selling Delicious jam by the
convenience stores. A very large portion of the sale can be sold on
convenience stores.

CHANNEL OF DISTRIBUTION
DISTRIBUTION CHANNELS

Nestle do not sell the product directly. It sells its products by indirect
distribution channel.

Finishe
d
product
s

Whole
sellers

Retaile
rs

Consume
rs

VERTICAL MARKETING SYSTEM

Nestle uses corporate vertical marketing system.

MULTIPLE DISTRIBUTION CHANNELS

Nestle adopts multiple distribution channels due to Size of the buyers.

We would also use the same distribution channels for our fictitious
product that the Nestle company is recently using e.g.; Indirect distribution
channel, Vertical marketing system, Multiple distribution channels.

PROMOTION
Thus company will hire, train and motivate sales people. It will set up
communication and promotion programs consisting of advertising, direct
marketing, sales promotion and public relation as mentioned below.
23

ADVERTISING

SALES PROMOTION

DIRECT
MARKETING

PUBLIC RELATION

Print and
broadcast ads
Billboards

Contests

Catalogs

Seminars

Lotteries

Mailings

Annual reports

Posters

Gifts

Telemarketing

Charitable
donations

Brochures

Premium

Electronic

Company magazine

Leaflets

Exhibits

Shopping

Sponsorship

Directories

Sampling

TV shopping

Publication

It means that NESTLE will advertise in print media like newspapers,

magazines e.g. Dawn, Nawa-e-Waqat, Jung and in some journals for
promotional purposes. It will advertise on electronic media & Broad cast
media e.g. TV, Radio which will be more attractive as compare to the
advertisement of competitor product and Nestle will also use billboards and
printed ads for retailers, moreover the company has got a website on which is
Nestle will provide special offers to the distributors.
When they lunched new juice brand, they offer buy one pack and get
one free to distributors. Nestl can use the same strategy for Nestle Delicious
Jam. They will offer free trial of the newly introducing jam to the general
public.

PROMOTION MIX STRATEGY

In consumer products the management of Nestle believes in pull strategy
i.e. creating pull through advertising. So we will use the pull strategy to
promote the sale of Nestle Delicious Jam through media.

STRATEGIC PLANNING
BCG MATRIX FOR CURRENTLY PRODUCING
SBUS
STARS
The two Sbus, Mineral water and Confectioneries fall into this category
of the BCG. These SBUs have high market share and high industry growth
24

rate. These Sbus are requiring lots of investment to compete in

the growing market. For example, lots of money is being spent
and aggressive marketing strategies have been implemented for the Mineral
water to build and maintain market share.
Nestle Pure Life has captured 50 % of the bottled-water market in
Pakistan since it was introduced in 1998. Its approximate sales for 1999 are
RS. 70, 401000. This sales figure is quite impressive as the sales rose quite
high in only one year. It is predicted that there will be additional growth in
the mineral water category in coming years. The sales of the confectioneries
rose to RS. 106,559 000 from RS. 87,758 000.
The huge increase of RS. 18, 801 000 puts this SBU in the stars
category and shows its increasing market share. There is a growing market
for the products in confectioneries for example Kitkat (eventhough its
imported), Polo Smarties etc. This can be proven from the fact that Nestle
keeps introducing new products in this category for example Allens Soothers
were launched during the last quarter of 1998.

CASHCOWS

Milk products, Coffee and Dietetic and Infant food have a high market
share and are doing business in mature industries. Since the customers of
this product category are loyal, the marketing costs of these SBUs is quite
low and as a result a large amount of cash can be generated. Customer
Loyalty is a must for these Cash cows to maintain their market share.
The sales of the Milk products have increased to RS. 108,430000 from
RS. 87,758000. This huge increase in sales reflects the high market share of
this SBU. However, its growth rate is low because in general this category is
in its maturity stage that is a number of milk products have been launched
by Nestle, most of which are quite old. An innovation has not really been
made in this category. The same conclusion can be made about Coffee.
There is an already existing market for Coffee which is not increasing further
by a large amount.
The sales of Coffee were Rs. 46,89 000 in 1999 and Rs. 392,00 000 in
1998. This huge difference shows that a great amount of cash is being
generated from this SBU. Sales of Dietetic and Infant food rose to Rs. 60,935
000 from Rs. 52,655 000. The infant foods unit of Nestle is operating in a
mature industry. Like the milk products, the infant foods have been around
for a long time without barely any new product line being started in this
category.

QUESTION MARKS

Included in this section are the culinary products of the organization.

The products such as Maggi 2-minute Noodles and Maggi cold sauces have a
low market share and a high growth rate. These products especially the cold
sauces are operating in a highly competitive market. The approximate sales
were Rs. 79,919 000 in 1999 and Rs. 60,818 000 in 1998. This figure
represents a great potential for growth in future. However, in contrast, the
market share of the products in this category is not very high currently.
A reason for this is that Nestle just recently introduced cold sauces such
as Emily sauce etc. However the enthusiasm, with which the customers
25

received the different flavors of sauces, portrays a very high

potential for future growth.
The firm needs to focus on
differentiating its products in the competitive market to gain customers.

DOGS

Chocolate and Fruit drinks fall into this category and they possess a low
market share and a low growth rate. Chocolate drinks had sales of Rs.
19639000 in 1999, which rose from Rs. 19541000 in 1998. This is quite a
small increase considering the rise in the sales of other SBUs. However, the
chocolate drinks are still profitable so the firm does not have to worry about
liquidating or getting rid of this SBU. The sales of Fruit drinks rose to Rs.
40,620 000 in 1999 from Rs. 38,103 000 in 1998. There has been a small
amount of increase; however it is not a lot compared to other SBUs.
Firstly, there is not a huge market for chocolate drinks in Pakistan.
People usually tend to buy light juices like apple or orange juice or Pepsi
instead of chocolate drinks. Secondly, regarding the fruit juices, there are not
a lot of flavors available currently in this category.
Nestle needs to introduce new flavors such as apple, grape etc. to
capture the market that prefer these flavors. This will not only increase the
sales of the SBU, but it will also increase its market share. At the moment,
additional amount of money is not being invested in these SBUs, as they are
not very profitable. Nestle is currently trying to maximize profits from this
category by minimizing expenditures and by differentiating the product to
build market share.

BOSTON CONSULTING GROUP (BCG) MATRIX

FOR DELICIOUS JAM
It will lay in question mark because it may be possible that many people
will not be aware of this newly made product which will show the low sale of
this product in starting. So it may have low growth in beginning period.
Different strategies will be made for the promotion of this product and the
firm will focus on differentiating its products in the competitive market to gain
customers.
The introduction of new variety in terms of features, packaging,
labeling and flavor may lead to the high future growth rate. In the start the
market share would be low and after penetration it will increase its share in
market.

DEVELOPING STRATEGY FOR GROWTH AND

DOWNSIZING
From the matrix of Market Expansion Grid, for the company growth, the
strategy of diversification will be applied for the Nestle Jam because the
company is starting up with the product outside the companys current
products and markets.
26

SWOT ANALYSIS OF NESTLE

JAM
STRENGTHS
The only brand in the area maintaining its quality and taste and having
the same impact on its customer
Economical
Delicious jam in market with many flavors
Strong Brand Name

WEAKNESS
Communication may be weak
Lack of Awareness for the new product

OPPORTUNTIES
Concentrating on distributing areas will increase sales
Increase in product line by offering different flavors.

THREATS
Sharing of segments by the competitors

RETURN ON INVESTMENT (ROI)

A Nestle Company can assess the return on investment in terms of
standard marketing performance measures, such as brand awareness
and sales or market shares of the Nestle Jam.
Nestle Jam will use sales and share data to evaluate specific
advertisement campaigns which will depict real-life scenarios of
consumers using different flavored jams.
Nestle will use customer-centered measures of marketing, such as
customer acquisition, customer retention and customer lifetime value
that will produce returns in the form of more profitable customer
relationships.
Moreover, the marketing investments could result in improved customer
value and satisfaction, which, in turn, will increase customer attraction
and retention. This will increase individual customer lifetime values and
the companys overall customer equity. Increased customer equity, in
relation to the cost of the marketing investments, will determine the
return on marketing investments.

27

MARKET IMPLEMENTATION
During the manufacturing of the product we would go for its
advertising. We would distribute broachers to create awareness. Then we
would hire some sign board in different major cities of Pakistan. And at the
same time we would go for TV and radio commercials. In all this process our
main focus would be on TV commercials and sign boards because now a day
these are the most popular things among the consumers.

CONCLUSION
Nestle is one of the latest and pioneer food producing company in
Pakistan
The company is performing very well for the financial point of view so it
will spend a huge amount on the promotion of Nestle Delicious Jam
It is leader in food goods in Pakistan. It will provide best quality of food
It pays a huge amount annually in the form of taxes to the government
of Pakistan
Companys distribution channels are very effective
It has more variety in food products line as compared to its competitors
In consumer products the management of Nestle believes in pull strategy
i.e. creating pull through advertising

REFERENCES
1. www.google.com
2. www.info.com
3. www.nestle.com
4. www.wikipedia.com
5. www.scribd.com
6. www.answers.com
7. Internship Reports
8. Nestle Annual Reports
9. Mr.Muzamil Hussain
10.Mr.Danish

Ph#0300-4263252
Ph#0321-4144196
28

TOTAL WORDS
7,033 words

29