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PROJECT OF MARKETING

Submitted to:-
SIR YAWAR ABBAS

Submitted by:-

HUSSAIN AFZAL 2008-ag-900

MBA 4TH

MARKETING

UNIVERSITY OF AGRICULTURE
FAISALABAD
DEDICATIONS:-

I WANT TO DEDICATE IT TO MY

LATE GRANDFATHER &

GRANDMOTHER

THEN MY PARENTS &

FAMILY,BECAUSE THEY APPRECIATE

ME EVER

THEN MY INSTRUCTORS &

SUPERVISOR WHO POLISH MY

CAPABILITIES & LET ME SHOW

MYSELF

THEN ALL MY FRIENDS & SPECIAL MY

GROUP MEMBERS WHO JUST KNOW

TO PUSH ME UP…..
AKNOWLEDGEMENT
All praises for almighty Allah. The Creator. Whose uniqueness oneness is
unchallengeable countless thanks to He the Lords of Lords who blessed us
with the courage and power to complete this report and all respects and
regards to Holy Prophet Hazrat Muhmmad (PBUH) for giving us the faith
paving us on the right path with the essence of faith in ALLAH

We feel great pleasure in expressing our profound and cordial gratitude to


our respected teacher and taught supervisors Sir YAWAR ABBAS for his
admirable cooperation guidance for us and sympathetic attitude which
enable us in the formulation of and compilation of report.

Our special thanks and favor for our esteemed friends for their ever lasting
cooperation and giving us the homely atmosphere. Last but not the least we
thank full to our parents and our family members for their cooperation
guidance and inspiration throughout the course.

& Special thanks to Mr.WAQAR AZEEM AWAN who lead me in data


compiling…
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• Executive summary
• History
• title of research programme
• SWOT ANALYSIS
• Bcg matrix
• Target market
• Point of purchase
• COMPETITIVE ADVANTAGE
• Market growth
• Market analysis
• Marketing mix
• Product packaging
• Pricing policy
• Distribution
• Promotion
• Questionair
• Conclusion
• recommencations
Executive Summary

This report,regarding Nestlé water. It starts with an introduction about


Nestlé followed by the history of Nestlé. It gives a briefing about Nestlé.

This report also includes the market mix of the product. All the 4P’s
of marketing mix for the product has been discussed and explained to reveal
the significance of its pricing, product, placing and promotional activities
along with the strength and weaknesses of the organization.The report shows
an internal architecture of the working of the Nestlé confectionary business.
It gives a detail about the supporting department that has helped the business
in their daily working.

Also it discusses the objectives, policies of the organization along with their
competitors at national level. There are also some
suggestions/recommendations for the business.
TITLE OF RESEARCH PROGRAME

“ NESTLE IS LEADING DUE TO ITS BRAND

IMAGE,BUT ITS COMPETITORS SHRINKING

ITS MARKET SHARE”


HISTORY OF NESTLE

Henri Nestlé founded Nestlé in 1866 in Switzerland. Nestlé means


‘little nest’ in Swiss German. Nestlé first customer was a premature infant
who could tolerate neither his mother’s milk nor any other conventional
substitute. Thus, Henri’s ultimate goal was to help fight the problem of
infant mortality due to malnutrition for which he developed a product
combining various cow’s milk, wheat flour and sugar and name it Farine
Lactee Nestlé, which was the first product of Nestlé being marketed in
Europe.

In 1974, Jules Monnerat purchased Nestlé and collectively they


launched a condensed milk product of its own. In 1905, Nestlé got merged
with Anglo-Swiss condensed milk.

After some time, when Nestlé got fully established and all its
operation were properly functioning in Europe and was gaining fame around
Europe, then Nestlé decided to set up production plants around the globe to
ensure the growth of the organization and to become multinational.

The decision to set up industrial operation in new market needs a lot


of research, as there are various factors that effect the growth of the
organization and turns out to be a loss for the company. Such factors are as
follows

 The availability of raw material


 Cost factor
 Economic climate
 Consumer purchasing power
 Consumer tastes

The decision to become multinational turned fruitful for Nestlé and today Nestlé has its
own operations and products in America, England, India, Brazil, Australia, Pakistan,
Hungary, France, Belgium, Italy, Spain and various other countries around the globe.

NESTLE TODAY

Nestle is now the world's largest food company. It is present on all five
continents, has an annual turnover of 74.7 billion Swiss francs, runs 509 factories in 83
countries and employs about 231,000 people the world over.

The Company owes its current status to the pioneering spirit inherited from its
founders which continues to inspire it, to its concern with quality and to its constant
search for new ways of satisfying man's nutritional needs.

Wherever possible, it sets up factories locally, employs personnel from the


country concerned and relies on indigenous raw materials. Its agricultural services
provide assistance to improve the quality and yield of the raw materials it uses. Much
attention is devoted to professional training and to the integration of the Company in its
economic and social environment.
VISION:
To provide PURE WATER to consumer

MISSION:
To add up minerals best for digestive system of human body

Short term goals


To boost the sales
Creating value for customer

Long term goals


Keep the loyalty of customer with NESTLE
HISTORICAL DEVELOPMENT

1866 Company’s foundation.


1905 Merger between Nestlé & Anglo-Swiss Condensed Milk.
1929 Merger with Peter-Cailler-Kohler Chocolates Suissee S.A.
1947 Merger with Alimentana S.A. (Maggi).
1971 Merger with Ursina-Franck (Switzerland).
1985 Acquisition of Carnation (USA).
1988 Acquisition of Buitoni-Perugina (Italy).
1988 Acquisition of Rowntree (GB).
1992 Acquisition of Perrier (France).
1995 Nestlé acquires Victor Schmidt & Sohne, Austria’s oldest confectionary,
including the famous “Mozartkugeln”.
1997 Nestlé, through the Perrier Vittel Group, expands its min activities with the
outright acquisition of San Pellegrino.
1998 Nestlé acquires Spillers Petfoods of the UK and strengthen in the petfood
business which began in 1985 with the Carnation Friskies brand & introduced
Nestlé Pure Life.

Nestlé Pure Life 1.5 - liter bottle was introduced in Pakistan.


1998
1999 Divestiture of Findus brand (except in Switzerland and its parts of Nestlé’s
frozen food business in Europe.

Divestiture of Hills Bros., MJB and Chase & Sanborn roast ground coffee
brands (USA).

Nesle Pure Life Jumbo Service (5 Gallon) was introduced.

2000
NESTLE BRANDS
Quality is an essential ingredient in all the Nestlé brands and also Nestlé brands
maintain nutritional balance in a fast pace world, that is why people around the globe
choose. The detail of the Nestlé brand is as follows:

 Baby foods (Nestlé Cerelac, NAN)

 Breakfast cereals (Nestlé Cereals)

 Dairy products (Milkpak, NIDO, Nespray, Nestlé Yogurts, Everyday)

 Ice-creams (Movenpick, Dreyer’s)

 Chocolate confectionary (Kit Kat, Smarties, Toffo)

 Beverages (Nescafe, Milo, Nestlé juices)

 Food service (Nestlé Jumbo Bottle)

 Prepared foods (Maggi, Powered Soups)

 Bottled water ( Nestlé Pure Life, Nestlé Aquarral)

 Pet care (Pro Plan, Purine, ONE, Fancy feast, Dog Chow, Cat Chow, Felix, Alpo)

 Pharmaceuticals (Ophthalmic drugs, lens-care solutions & optical surgical

Instruments)
SWOT ANALYSIS OF NESTLE

• STRENGTH
• LARGE MARKET SHARE
• ALREADY EXISTING IN MARKET AS COMPARE TO
COMPETITORS
• IT IS KNOWN AS PURE WATER
• BEST STAFF,SPECIAL R & D dept
• Resources
• Brand Image
• Consumer Pull
• category focused sales

• WEAKNESSES
• Advertisement / Promotional Campaigns
• Weak distribution due to less VANS
• Less Number of Chillers
• High turn over of salesmen
• Low Trade Offer as compare to competitor
• Food Services accounts e.g. Restaurants, Bus stands,
Railway stations
• High price
• Less party orders due to high price

• OPPORTUNITY
• Changing Lifestyle
• Faisalabad City Developing on Fast Track
• Increasing literacy rate
• Sub Standard Quality of Drinking Water
• Very low per capita consumption of NPL
• Big Shop Universe

• Threats
• High Trade offers by Aquafina & Kinley
• Rising Inflation Rate
• Low prices of competitor
• Awareness of customer is increasing
BCG MATRIX
Relative Market Growth

Question Marks
Star

dog
Cash Cows
High
Low

STARS
The stars are the high relative market share and high market growth. Nestle
beverages i.e. are somewhat the stars in their business, because with the high quality and
new designs which comes every now and then makes them more popular among the
customers, because customer with upper class wants the quality and nestle offers the best
quality food items.
CASH COWS
The cash cows are their baby food items i.e. nestle cerelace and other baby
food products. Company has to take measures to make these products as stars.

DOGS
The pharmaceutical products are nestle Dog, because it has low-share business

with low growth market especially when we talk about Pakistani market. The company

has to think on what it can do by improving the low share and growth market.

QUESTION MARKS

The question marks are the breakfast cereals. They have high market growth but
low market share. The company has to decide about which question mark they should try
to build into the stars and which one of these should be phased out.
WORLD WATER BOTTLED MARKET
Annually consumption 189billion liter

Estimated sales $ 200 billion

Consumption growth 7 % per year

PAKISTANI BOTTLED WATER

People using bottled water 7 to 8 %

Annually consumption 1.7 billion liter water

Estimated sales RS 20 billion

Consumption growth 1.7 % per year


ECONOMIC SURVEY
Pakistan’s biggest consumer markets include:
CITES POPULATION
Karachi 15 million
Lahore 9 million
Rawalpindi 3.0 million
Faisalabad 2.6 million
Multan 1.6 million
Gujranwala 1.3 million
Hyderabad 1.3 million
Islamabad 1.3 million
peshawar 1.0 million

Population and growth:


population 180
million
Growth rate 4.09%

Urban population 56
million
Urban Population growth rate 2.10%

Size of middle class 82


million
Middle class growth 3%
Age structure:

agePop Age category Population & %age


n
0-14 years 64.5 million
39%
15-64 years 94.5 million
57%
65 years and over 7.0 million
4%

Target market
Target market is same as of AQAUFINA
First target was to capture people of age 14-40
Now kids & children

Point of Purchse
Point of purchasing of plastic is THAILAND
& water from PUBLIC SOURCE
COMPETITIVE ADVANTAGE
• Its purity is its competitive advantage
• Its promotional activities regarding after sale is attractive
Like if any bottle in pet is leaked but sealed,then it is replaced while
no competitor do like this,which create more security for business
customer
• More care in filteration process as compare to AQUAFINA
MARKET GROWTH OF NESTLE
NESTLE IS LEADING THE MARKET WITH MARKET SHARE OF
52%
Market Analysis:

Major players in this industry are:

 AQUAFINA

 Kinley

 Sufi

 First

 Others
MARKETING MIX

PRODUCT:

Product packaging

Plastic bottles
 500 ml
 1500 ml
Labeling

 sticker containing ingredients


 on the other side USP of the product is specified

USP
 purity
 Taste of NESTLE water is much nice than AQAUAFINA

Pricing Policy

On going rate price


Almost the prices of all bottled water is same

500 ML 18
1500ML 35

DISTRIBUTION
NESTLE has its own distribution network
So
They provide products to shopkeepers & end consumer itself
PROMOTION
 ADVERTISING STRATEGY
 TV
 RADIO
 NEWSPAPER
 MAGAZINE
 BILLBOARD
 BUSINESS TO BUSINESS PROMOTION
(YELLOW PAGES)
• Giving incentives to shopkeepers
• Incentives for ASMs
• Stands,t-shirts,chiller,etc for sales promotion & BRAND loyality
DATA ANALYSIS TECHNIQUE

Questioner & data collection from references

Hypothesis:-

Ho: market share of nestle is shrinking due to its competitors


H1: market share of nestle is not shrinking due to its
competitors

sample size:-
60

MALES--------------- 45

FEMALES----------- 15
QUESTIONEIR

What brand of water beverages you use to drink?

(a)Nestle
(b) Aqua fina
(c) Kinley
(d) Other

Why you use above related brand?

(a)Quality and taste


(b) Price
(c) Advertisement
(d) Availability

Whose marketing through advertising is strong ?

(a) Nestle
(b) Aqua fina
(c) Kinley
(d) Other

Nestle has strong brand image , due to its purity ?


(a) Strongly agree
(b) Agree
(c) Disagree
(d) Strongly disagree

Whose taste is best ?

(a) Nestle
(b) Aqua fina
(c) Kinley
(d) Other

Whose distribution network is strong ?

(a) Nestle
(b) Aqua fina
(c) Kinley
(d) Other

Whose brand is easily available ?

(a) Nestle
(b) Aqua fina
(c) Kinley
(d) Other

Which bottle quality is good ?

(a) Nestle
(b) Aqua fina
(c) Kinley
(d) Other

Ever you like to see expiry date before you drunk your favorite brand ?

(a) Yes
(b) No

What you like it to buy ?


(a) Corner shop
(b) Super store
(c) Mega mart
(d) Which one is near

Ever you like to do experiment to change your brand ?

(a) Yes
(b) No

RESPONDENT PROFILE:-

Name_________________ occupation_______________
Age__________________ contact number____________
Gender________________

CONCLUSIONS

According to data analysis people do not believe that competitors


of nestle are shrinking its share because:

 NESTLE has strong brand image on the basis of purity

 NESTLE always segment the exact customers, e.g all


doctors prefer to use NESTLE pure life water

 CARE pharmacy do not believe that till now any of


NESTLE competitors are successful to compete on the
basis of quality

 Nestle has positioned among people as HEALTH provider


brand
Recommendations for NESTLE:-

• KEEP THE TASTE NICE


• INCREASE ADVERTISING & SHOW YOUR COMPETITIVE EDGE
• INCREASE LOYALITY OF CUSTOMER WITH BRAND THROUGH
ATTRACTIVE PACKAGES
• KEEP THE PRICE LOW,BECAUSE THE DAY WHEN PRICE WILL
COMPETITOR WILL BE VERY NEAR TO YOUR PRICE YOUR
SALES WILL BE BOOST UP.
• INCREASE ITS DITRIBUTION NETWORK
• TRY TO GET MORE & MORE PARTY ORDERS
• GIVE KEEN INTEREST TO CRM
• INCREASE INCENTIVES & PROMOTIONAL ACTIVITIES
• More focus on C & D Class Shops by revisiting Shop wise data.
• Training of ASM’s by Regional Head as a Coach / Team Leader.
• Training courses/workshops for team
• Conduct Training Sessions of Salesmen at least once a month at
Regional Level.
• Hiring of Quality Sales people is in process in Faisalabad City.
• Re-define roles & responsibilities of every Individual in order to
bring ownership and sense of responsibility.
• Weekly Meeting with Distributors and Sales Team in order to review
weekly target closing

REFERENCES:-

WWW.NESTLE.COM

WWW.GOOGLE.COM

WWW.IMAGES.COM