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					Easy Whip
WHIP UR DREAMY DESSERTS `N CAKES

“Easy Whip
by Nestlé Launched in October, 2004

”
Project Report (Marketing Fundamentals)

Presented To: Ms. ONAIZA ZUBAIR Prepared By:
Muhammad Amir Latif Rizwan Munir Bhati Anwar Ahmad Moon Muhammad Ayyaz Tanveer 021227 021221 021236 021216

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Table of Contents
Topic
1. Nestle History o Nestle Group 2004 o Nestle in Pakistan o Production 2. History of Easy Whip 3. Strength o Image of the Company o No similar Product 4. Weakness 5. Opportunities 6. Threats 7. Product Line o Product Line o Products By Nestle Internationally 8. Easy Whip o Product Portfolio o Ingredients 9. Product o Branding o Packaging o Labeling 10.Price o Pricing Objective o Pricing Strategy

Page Number
5 6 7 7 9 10 10 10 10 11 11

12 13 15 16 16 18 18 18 18

20 20

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11.Placement 12.Promotion o Promotion Objective o Awareness and Knowledge o Linking o Preference o Purchase 13.Re-Launching o Product o Pricing o Promotion 17.Graph

21 22 22 22 23 23 23 24 24 24 25 26

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Food is a core element of our daily lives. It enables us to survive as well as a balance and good quality food also help to ensure a better standard of living. HENRI NESTLÉ (The Founder of Nestlé) said: “They thought that my invention could save the lives of so many children. Counted enormously, the financial gain was not the prime motivation.” Nestlé was founded in 1866 and its goal was:     A constant process of change Implementing new scientific findings in tasty foods High infant mortality rates and lack of suitable foods for babies The lack pure fresh milk in European cities

In 1905 the two companies Nestlé and the Anglo-Swiss Condensed Milk Co. merged. They not only unite their worldwide distribution and production network but also their milk-processing expertise. If we talk about taste and pleasure, many customers think 1st and foremost of the range of chocolate products that has belonged to Nestlé since1905 and was expanded significantly in 1929 with the taste over of Swiss chocolate makers Peter, Cailler and Kohler the acquisition of Rowntree (Kit Kat, Smarties). The expansion of their activities into the area of performance nutrition with the take over of Power Bar in 2000 follows this trend. With the expansion of food services division and takeover of Chef America in 2002, Nestlé acknowledgment the growing trend for eating out-of – home. With the acquisition of carnation in 1985, they entered the pet food business becoming a joint world leader via mergers with Spiller (1985) and Purview (2001). Since 1947, Nestlé has also held an indirect participation in L’Oreal. Following the 1989 joint venture, Gal derma, in dermatology, the 2002 joint ventures, “Laboratories Inneov” combine the competencies of Nestlé

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in nutrition research with those of L’Oreal in cosmetics. This creates access to a further dimension of nutrition, that of promoting beauty and wellness via specific nutritional supplements. The success of the 1977 move into the pharmaceutical companies with the takeover of Alcon was highlighted with the partial IPO (around 25%) in 2002. “With over the hundred years of experience, we know that the trust of our consumer is based on the quality and safety of our products. We also know that we must continue to deserve this trust”.

Nestlé Group 2004
Company profile World’s leading food company Switzerland’s largest industrial company World headquarters: Vevey (S.witzerland) 500 factories; 247 000 employees

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Nestlé in Pakistan:
Nestlé has a unique ability to provide a complete range of food products, services and well-known brands to meet the need of customers around the world. Nestlé milk pack operates in many ways but people, products and brands are the main flag bearer of the company’s image. Nestlé’ Milk Pack Ltd. is a food processing company which is registered in Karachi and Lahore stock exchanges. The headquarter of Nestlé is in Lahore; the company is operating its five production facilities. Two of its facilities in Sheikhpura and Kabirwala one multi product factories, while another one at Karachi is ready for production. One factory in Islamabad and two in Karachi produced bottled water.

Production:The production facilities under the name of Milkpak Ltd. at Sheikhupura commenced operations in 1981 as a producer of UHT milk. By 1988 it has expanded as its operations to produce butter, cream, desi ghee all under the band of Milkpack and first fruit drink under the brand name FROST After Nestlé’s S.A, Switzerland, took a major participating in MilkPak in 1988, the Milkpak factory at sheikhupura became a part of the joint venture under the name of Nestlé Milkpak Ltd. Soon afterwards in 1990 the milk powder plant was established to produce powder Milk (NIDO). This was followed in subsequent year by the installation of production liner of infant cereals (CERELAC) infant formula (LACTOGENs), tea whitener (EVERYDAY), chocolate drink powder (MILO), growing up milk (NESLAC), ready to drink chocolate drink (MILO RTD), sugar confectionery (POLO Mint), fruit drinks (FROST), juices (ORANGES, APPLE, PINE APPLE MANGO), coffee (NESCAFE), flexible confectionery line (TOFFO and SOOTHERS), bottled water (NESTLÉ PURE LIFE), plain and fruit yogurt, specialized infant formulae (NAN1&2). During these years a variety of variants in different products were also introduced as a part in expansion of products portfolio. A MAGGI NOODLES plant was installed in 1992, followed by Gloria whose capacity was subsequently increased several times. A dry mix line was installed for tea whitener. To meet the needs of safe storage for the ever expanding product range and their increasing volumes, a National Distribution center (NDC)

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was constructed in 2000. Spread over 6614 square meters, it can store up to 8300 pallets, approximately 8000 tons.

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History of “EASY WHIP”
Many consumers used imported brands and most of the people didn’t know about that product. Nestlé realize this market opportunity that they can produce that product locally cost efficiently and can offer relatively good price as compare to imported brands after retaining this reasonable product. So they realize that there is an adequate demand of that product at a reasonable price. The company didn’t face any problem as financing point of view and they were hopeful about this market because there was no local competition and they would be able to capture the complete market and able to made the reasonable profits. It also compatible with the environmental standard as it is in tetra pack and is made in purely hygienic condition considering in mind the health of the people also the organizational structure of Nestlé support the production of this product, so as the EASY WHIP meet all the criteria for new product as a producer. In the criteria of middlemen, middlemen can take this product as Nestlé has good market repute and well-known brand name. As we know it is a new and unique product in local brand and there is no competitor, so it is compatible with its distribution policies also it is due to the only 4% premium so it also meets the middlemen’s criteria for the brand new product. After thinking about the product and keeping all this things in their mind, they hopefully moving towards manufacturing the product. They hire some professionals and starts manufacturing product. Initially they test their product in their testing department “Department of Consumer Services” as in house testing and they also sent some free samples to bakeries and to some shafts and they received a very good response, which is how they test their product. After completion of their test they hopefully launch their product “EASY WHIP” in October 2004. That was really a unique product whipping cream in local brand.

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STRENGHT
Image of the Company:
Nestlé is one of the largest, good reputed organizations having some financial back and large market share in Pakistan. People are well aware of its brand name that is why any thing introduced by Nestlé has a general perception that it will be of good quality. Easy Whip have no need to introduce his producer but need more spending to be promoted and capture customers attention the company image, its goodwill help easy whip a lot to grow and capture market but unfortunately the product besides of a good reputed organization back cannot achieve its desired targets in terms of sales, market share etc. When it is launched the quality of product was not as accurate as required. The expiry was also a problem. Although the idea was good but the weaknesses are more powerful than the strengths, which lead loss of opportunity.

WEAKNESS
Although Nestlé is one of the largest brands in Pakistan, yet it made some mistakes. The product shorts placement. It was only on few places like super stores and departmental stores. And it was launched only in Lahore, Karachi and Islamabad The other weakness is that it failed to maintain international quality standards It also focus only upper class Most important is that they didn’t make any TV Commercial

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OPPORTUNITIES
No Similar Product:
Nestlé Easy Whip has no competitor in Pakistan, as there is no brand which is offering any Whipping cream. It is easy to whip and it has relatively low price

THREATS
It has no threat as there was no local competitor at that time. So this product could be a leading one.

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Products by Nestlé internationally
Culinary products
Bouillons, soups, seasonings, pasta, sauces: Maggi, Buitoni, Thomy, Winiary Frozen foods (prepared dishes, pizzas): Stouffer’s, Lean Cuisine, Hot Pockets, Buitoni, Maggi Refrigerated products (cold meat products, dough, pasta, pizzas, sauces): Nestlé, Buitoni, Herta, Toll House Chocolate, confectionery and biscuits Nestlé, Crunch, Cailler, Galak/Milkybar, Kit Kat, Smarties, Baci, Butterfinger, Aero, Polo FoodServices and professional products Chef, Davigel, Minor’s, Santa Rica

Pet Care
Purina Friskies, Fancy Feast, Alpo, Gourmet, Mon Petit, Felix, Dog Chow, Cat Chow, Pro Plan, Purina ONE, Beneful, Tidy Cats

Pharmaceutical company
Alcon Pharmaceutical and cosmetic joint ventures Galderma, Laboratoires innéov Associated company L’Oréal (equity interest)

Nestlé – the main brands
Beverages: Coffee: Nescafé, Taster’s Choice, Ricoré, Ricoffy, Nespresso, Bonka, Zoégas, Loumidis Water: Nestlé Pure Life, Nestlé Aquarel, Perrier, Vittel,
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Contrex, S.Pellegrino, Acqua Panna, Levissima, Nestlé Vera, Arrowhead, Poland Spring, Deer Park, Al Manhal, Ozarka, Hépar, Ice Mountain, Zephyrhills, San Bernardo, Quézac Other: Nestea, Nesquik, Nescau, Milo, Carnation, Libby’s, Caro Milk products Shelf stable: Nestlé, Nido, Nespray, Ninho, Carnation, Milkmaid, La Lechera, Moça, Klim, Gloria, Svelty, Molico, Nestlé Omega Plus, Bear Brand, Coffee-Mate Chilled: Nestlé, Sveltesse, La Laitière, La Lechera, Ski, Yoco, Svelty, Molico, LC1, Chiquitín Ice cream Antica Gelateria del Corso, Drumstick/Extrême, La Cremeria, Maxibon/Tandem, Mega, Mövenpick, Sin Parar/Sem Parar/Non Stop

Nutrition:
Infant: Nestlé, Nan, Lactogen, Beba, Nestogen, Cerelac, Neslac, Guigoz, Good Start Performan ce: PowerBar, Pria HealthCare: Nutren, Clinutren, Peptamen, Modulen

The brands in italics are registered trademarks of the Nestlé Group

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PRODUCT PORTFOLIO
NAME:
EASY WHIP

SLOGAN:
WHIP UR DREAMY DESSERTS `N CAKES

SIZES:
200 ML 1000 ML

PRICES:
Rs 25 FOR 200 ML Rs 100 FOR 1000 ML

TARGET MARKET:
YOUNG URBAN FEMALES

PACKING:
TETRA PAK

PLACING:
LAHORE ISLAMABAD KARACHI

ADVERTISMENT:
MAJOR ENGLISH NEWS PAPER STEAMERS BILL BOARDS SPECIAL GONDARES STAND

PROMOTION:
FREE SAMPLES TO: BAKERY PROFESSIONAL CHIEFF

PREMIUM:
4% TO RETAILER

USED IN:
DESSERTS CAKES FRUIT TRIFFEL

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INGREDIENTS:
Milk Fat, Hydrogenated Palm Kernel Oil, Milk, Glucose Syrup, Emulsifiers, Stabilizers, Sodium Poly phosphates, Sodium Chloride, Calcium Chloride.

For Best Result:
Refrigerate For 12 Hours before Whipping Store at Normal Fridge Temperature Do Not Freeze

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Product
Branding
Branding is very important for a product. Because a brand name gives identity to the product and differentiate the products form competing products. There are certain strategies adopt by the producer to choose a good brand name.

The Company Name Combine with Product Name:

Nestlé combine company name with product name while choosing the brand name for Nestlé Easy Whip. That is, why the complete name for Nestlé Easy Whip is “Nestlé Easy Whip”. They use company name with product name because Nestlé has a very good image in the minds of consumers. So it was easy to position the Nestlé Easy Whip as a good product in the minds of consumers. The promotion could be automatically done due to the good image of the company. In the country like Pakistan, where people prefer foreign brands, it was difficult for a local brand to compete with it. So they use company name to promote their product.

Packaging
Nestlé use various packaging for its products like polythene packs, steel jars, plastic packs and Tetra Pak etc. They use Tetra Pak for packaging of Nestlé Easy Whip in edge shape, because it is safer. As whipping cream is a sensitive product and its expiry date is very short so it was safe to pack Nestlé Easy Whip in Tetra Pak. Another reason for using this packaging is that Tetra Pak is recyclable and it is environment friendly. So to make a good position it is also a tool.

Labeling
Nestlé use a simple packaging with red and white combination to attract the consumers. It also use a very simple brand name Nestlé Easy Whip

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because it is easy to pronounce and understandable. As whipping cream is introduction stage, so Nestlé choose its name related to product. Nestlé Nestlé Easy Whip is in Tetra Pak as their other brands like juices and milk. Nestlé Easy Whip is in special packaging of 250ml Tetra Pak. As Nestlé Easy Whip is a new product, so Nestlé did it’s labeling in such a way that it showed cakes and desserts on the pack and wrote “ENJOY THE ALLURING ART OF CREATING DESSERTS”. Nestlé also show the way of whipping on the pack. They show electric beater while whipping the cream and they also wrote the complete way of its usage in the following steps: For best results:  Refrigerate for 12 hours before whipping  Store at normal fridge temperature  Do not freeze To attract their brand loyal customers, Nestlé wrote its company name with its brand name and also the complete address of company as: “NESTLÉ CONSUMER SERVIES 308 UPPER MALL LAHORE 54000, PAKISTAN Reg. TRADE MARK of Societe des produits Nestlé S.A.” Nestlé also wrote expiry date, quantity and ingredients for the convenience of their customers.

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Price
Pricing Strategy
A Nestlé launch Easy Whip, it charge one price from all of its customers in the consumer market. Nestlé charge a single price of Rs. 25 by adopting the single pricing strategy. Nestlé did relatively low pricing as compare to foreign brands available in the local market. Nestlé focused on A-class and did low pricing, because Nestlé want to attract the existing customers of imported brand and potential customers with the help of their low pricing.

Pricing Objective
The objective of this pricing was to increase the sales and maintain the market share. So Nestlé set low price to increase its sales, as the sales increase the market share should be improve.

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Placement
They adopted selective distributive channel and so it was available only on super stores and departmental stores. They launched in Lahore, Karachi and Islamabad only.

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Promotion
Determining the Promotional Methods
There are various promotional methods like personal selling, advertising, sales promotions, public relations etc. but the method adopted by Nestlé for introducing Nestlé Easy Whip was advertising. Nestlé used outdoor printed media for advertising like hording boards, new papers, posters etc. Nestlé attracted the existing customer of the imported brands and potentials customers through its advertising campaign. As whipping cream is in introductory stage in Pakistan, there are various tools to perform the essential promotion rules- informing persuading and reminding target audience. So Nestlé stared introducing to their potential customers about their product. In every advertising campaign, Nestlé wrote “A WHIPPING CREAM” at the bottom. This is how; Nestlé tells the consumers that the whipping cream is available in local brand. Nestlé use the slogan “WHIP UP YOUR DREAMS, DESSERTS N’ CAKES” for promotions. By using these words in their campaign, they can say that consumer may feel joy and happiness while making their cakes and trifles at their homes. In their campaign, Nestlé showed a beautiful charming girl of upper class who was designed a trifle with whipping cream that portion of their campaign fantasy n great happy pleasant feelings. To remind the consumers about the product, Nestlé also made some special racks for retailers and put them on their outlets.

Promotion Objectives
Following are the main promotion objective of Nestlé Easy Whip:

Awareness and Knowledge
The most important objective of Nestlé was too aware the use of whipping cream and gave knowledge about the Nestlé Easy Whip. The product name Nestlé Easy Whip and they sentence “A WHIPPING CREAM” helped them a lot to introduce their product into the consumer market.

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Suppose, if a person doesn’t know the meaning and usage of whipping cream, it can learn form the word, “WHIP UP YOUR DREAMS, DESSERTS N’ CAKES”.

Linking
Nestlé wrote its company name with the product name as “NESTLÉ EASY WHP”, which is how Nestlé linked its name with the brand name because Nestlé has a good market reputation. So Nestlé attracted its brand loyal customers as well.

Preference
Nestlé gave preference to its product in such a way that it is easy to use and not much costly as compare to imported brands.

Purchase
Without purchase, the promotion objective can not be achieved. Nestlé did advertisement to provide information for the decision makers and persuade their potential customer towards their product to purchase, that’s why Nestlé received a very good response on its initial launch.

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RE – LAUNCHING
After thoroughly analyzing the reasons of failure, Nestlé has to relaunch “Easy Whip” in such a way that it becomes a marketing success. Nestlé has to change or reform its marketing mix in the following ways:

PRODUCT:
Nestlé has to improve its product’s formula in such a way that its expiry period will be long. Nestlé has to change its machinery for new launch. On its pack there is written that;

“For best result refrigerate it for 12 hours before whipping”
This duration is also very long for a consumer who wants to make anything immediate with “Easy Whip”. Also change product’s formula by keeping this fact in mind. On the other side its labeling, colures, brand, design and shape of pack are all good so keep them continue in re-lunching.

PRICING:
Nestlé launch “Easy whip” with a nominal price in market of Rs.25 only. The price issue is not the cause of its failure so Nestlé relaunch this product with the same price for consumers.

PLACING:
If Nestlé re-launch this product than it will have to focus on its supply. Because supply is the major issue of its failure on its initial launch.

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Due to some quality or production issue the supply was shorter and “Easy Whip” is disappeared from shelves. Easy Whip is a unique product of Nestlé which is very sensitive and has a less expiry period. So by weekly basis this problem can control, proper stands with proper placing are also introduced as before. At the initial launch Nestlé focused only on A-class. To increase its market share or become a marketing success Nestlé has to increase its target market and focus on upper lower. If Nestlé increase its target market than it has to increase its placement channels and distribute “Easy Whip” on large scale except limited scale as before. At initial launch Nestlé distributed “Easy Whip” on specific large retail outlets but now it has to distribute it on many outlets wits proper and attractive placement.

PROMOTION:
any product. Promotion activities plays an important role in re-launching

Increase in target market is possible by personal selling. It includes persons in retail stores telling the benefits to potential customers about “Easy Whip”. Awareness plays the most important role. They should taste house wives on different places. TV commercials and Bill Boards should be planned to advertise properly

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Graph

Facort Buying a Whipping Cream
20 18 16 14 12 10 8 6 4 2 0
Br an d Pr ep ar e Ta ste Pr ice lity Av ail ab i Pa ck ing

Excellent Good Fair Poor

Ti m

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to

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