nestle pure water _mkt_ by liuqingyan

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									Course Title: Principles of Marketing
 Submitted To: Madam Shehla Sohail

 Institute of Management Science Lahore
          Group Members

   Raheel Khalid         081193
   Uzma Tahir            081181
   Abida Parveen         081140
   Sehrish Qamar         073122
   All thanks and praise for Almighty Allah
    who blessed us and enabled us for the
    completion of this research project. We
    feel much pleasure in expressing our deep
    regard and gratitude for our course
    instructor madam Shehla sohail.
   We are also profoundly obliged to the
    valuable co-operation of Mr. Muhammad
    Hussein from nestle sales department. And
    the brand manager of NPL Mr. Shehzad
    Qamar and distribution manager Mr. Tariq
   In this research project we are going to study the marketing
    strategies of Nestle pure water. Nestle is old entrant in the pure
    water market and is facing a competition from other brands like
    Aquafina, Kinlay, Sufi etc.We are focusing on the marketing
    strategies of Nestle regarding Nestle pure water.

   Nestle came into Pakistan in 1988 when they first acquired a share
    in Milk pack Ltd. Today they are fully integrated in Pakistani life,
    and are recognized as producers of safe, nutritious and tasty food,
    and leaders in developing and uplifting the communities in which
    they operate. Nestle Pakistan ensure that t there products are made
    available to consumers wherever in the country they might be.
    Convenience is at the heart of the Nestle philosophy, and there aim
    is to bring products to people's doorsteps.

 Nestle with headquarters in Vevey, Switzerland was
 founded in 1866 by Henri Nestle and is today the world's
 biggest food and beverage company
Nestle's existing products grow through innovation and
renovation while maintaining a balance in geographic
activities and product lines.
The Company's priority is to bring the best and most
relevant products to people, wherever they are, whatever
their needs, throughout their lives.
   In the 1860s Henri Nestle, a
    pharmacist, developed a food for
   People quickly recognized the value
    of the new product, after Nestle's
    new formula saved the child's life,
    and soon, Farine Lactée Henri
    Nestle was being sold in much of
   The end of World War II was the
    beginning of a dynamic phase for Nestle.
    Growth accelerated and companies were
   . Nestle divested a number of
    businesses1980 / 1984. In 1984, Nestle's
    improved bottom line allowed the
    Company to launch a new round of
    acquisitions, the most important being
    American food giant Carnation.
   The first half of the 1990s proved to be
    favorable for Nestle: 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, Nestle merged its U.S. ice cream business
    into Dreyer's, and in August, a USD 2.6bn
    acquisition was announced of Chef America,
    Inc.. In 2006, Jenny Craig and Uncle Toby's
    were added to the portfolio.
                Nestlé's Products
   Today, Nestle is a thriving business with
    headquarters in Paris. In 2006, it sold its
    72 brands of bottled water worldwide.
    The international brands of Nestle
    Waters are familiar on tables throughout
    the world

   The production of infant food goes right back to
    the origins of the Nestle Company. Henri Nestle's
    'Farine Lactée' was the first product to bear the
    Nestle name.
   In 1867 a physician persuaded Henri Nestle to
    give his product to an infant who was very ill he
    had been born prematurely and was refusing his
    mother's milk and all other types of nourishment.
    Nestle's new food worked, and the boy survived.
    From the very beginning,
   Nestle has long been a major
    player in the dairy industry,
    originally with well known shelf
    stable, i.e., dried milk
    powder brands such as Nido,
    Nespray, La Lechera and
    Carnation. We have been
    bringing life to milk since the
    very beginnings of our company.

   Nestle has a joint venture with General Mills
    outside North America, Cereal Partners
    Worldwide, which is active in more than 80
   The joint venture began in 1990, and its rapid
    growth has been characterized by strong
    branding and lately the launching of breakfast
    cereal brands into the fast-growing cereal bar
   Nutrition has been a central theme for Nestle
    ever since 1867, when Henri Nestle first
    invented infant food to help save the life of a
    neighbour's child
   Today, Nestle has progressed beyond these
    beginnings to become a world leader in key
    categories of Nutrition, Health and Wellness to
    offer our consumers the food choices they need
    to achieve the healthy lifestyles they want.
   In 1937, Nestle scientists perfected a powdered
    coffee product that was introduced in 1938
    under the brand name Nescafe the world's first
    commercially successful soluble coffee
   Nestle is a major producer of chocolate-based
    and malted drinks.
   Its leading brands, Nesquik, Milo and Nescau
    are very popular with a growing number of
    young people around the world
   The Society commissioned Julius Maggi, a
    miller with a reputation as an inventive and
    capable businessman, to create a vegetable food
    product that would be quick to prepare and easy
    to digest. The results two instant pea soups and
    an instant bean soup helped launch one of the
    best known brands in the history of the food
    industry. By the turn of the century, Maggi &
    Company was producing not only powdered
    soups, but bouillon cubes, sauces and flavorings.
   Maggi merged with Nestle in 1947.
    Buitoni, the authentic Italian brand,
    which has been producing pasta and
    sauces in Italy since 1827, became
    part of the Nestle Group in 1988.
   Nestle entered the petcare business
    with the purchase of Carnation in
    1985, and we consolidated our
    position in Europe with the
    acquisition of the Spillers brand in
    1998, and further with the acquisition
    of Ralston-Purina in 2001, creating
    Nestle Purina PetCare.
Nestle in Pakistan
   Nestle has been serving Pakistani consumers
    since 1988, when our parent company, the
    Switzerland-based Nestle SA, first acquired a
    share in Milk pack Ltd.
   Today we are fully integrated in Pakistani life,
    and are recognized as producers of safe,
    nutritious and tasty food, and leaders in
    developing and uplifting the communities in
    which we operate.
   We at Nestle Pakistan ensure that our products
    are made available to consumers wherever in the
    country they might be. Convenience is at the
    heart of the Nestle philosophy, and our aim is to
    bring products to people's doorsteps.
   We have 4 factories in Pakistan .one is at
    Sheikhu pura, one is Islamabad and two
    factories are in Karachi.
Marketing and Sales
   Nestle products are within reach for every
    single Pakistani. Yet nutritional value and
    quality remain the most essential ingredients
    in all our brands.

   All our key brands are equipped with the
    Nutritional Compass that ensures all the
    nutritional information about the product is
    accessible thanks to our user-friendly
    nutritional labeling and guidelines.
   Nestle Consumer Services is the main interface
    between you and the company, and we make
    every effort to ensure that your voice is heard.
    After all, it's your satisfaction that really counts
   Our communications to the consumer are
    relevant, cutting-edge, and adhere to the highest
    standards of responsible communication. Our
    company is seen as the No. 1 career destination
    for talented, motivated and ambitious

    STAR                                ?
           Juices, cereals              Noodles, Nescafe

      Cash cow                    Dog
      Nestle pure water ,milk   POLO (local manufactured)
   Our proactive innovation and renovation culture is the
    key to our success in the marketplace. Fully integrated
    systems (Nestle Pakistan, suppliers, customers) ensure
    efficient business processes.
   Every bottle of NESTLE Pure Life is
    produced with the Nestle Safety System
    and is carefully sealed with a
    proprietary seal. An optimal balance of
    essential minerals, enhancing the health
    and wellbeing of your family, matches
    purity of the highest standards.
   For your convenience NESTLE Pure Life is
    available in non-returnable 330ml, 0.5 liter and
    1.5 liter bottles at retail outlets and Bulk bottles
    for Home & Office Delivery in 19 & 12 liter (12
    liter is available at retail outlets
    #2biggest brand worldwide
   21countries where Nestle PURE LIFE is
   400glasses of Nestle Pure Life were drunk every
    second around the world in 2005
SWOT Analysis
   Marketing strategies are being made after the
    analysis of external and internal audit.
   External factors include the market threats
    and market opportunities, while internal
    factors include the strength and weakness of

 Strength       Weakness

Opportunities   Threat
   Nestle water is no. 1 selling water in Pakistan.
   Nestle is world famous brand name and people trust
   Mostly the people who buy Nestle water are
    health conscious so they use Nestle water, as
    it is hygienic and good for health.
   The supplies network of Nestle pure water is
    the biggest in Pakistan.
    Price of the Nestle is not very
    economical and Income level of
    Pakistan is low and most of the people
    lies in lower middle class so they
    cannot afford Nestle pure water. Nestle
    is a very big company so their decision
    making process is up to mark.

   Now a day’s people are more aware and they are getting
    health conscious day by day, they know that tap water is
    not safe for their health
   Now a days the trend has been settled in most of the
    offices, banks, universities and even in homes people
    are using dispensers instead to water filters or using the
    tap water so that open the new opportunities for the pure
    drinking water

   Many big competitors like coca cola and Pepsi are
    now in the market and they are investing heavily in
    Pakistan in into pure water industry so it is always
    difficult to compete with big competitors.
Strategies on the basis of SWOT

   Cost leadership strategy
   Product differentiation strategy
External and internal factors
   Internal factors
    Following are the internal factors affecting
    our policies
   Customer:        nestle have the largest number of
    customer in Pakistan’s water industry.. Nestle have
    market share of 65% of water industry in Pakistan,
    this figure depicts that we have captured a largest
    number of consumer of pure water in Pakistan.
   Supplier:
    Nestle don’t have such suppliers they have their
    own production of bottles and we use tap water
    as a raw material
   Distributors:
    We have three channels of distribution:
   Modern trade
   Traditional trade
   Horica (food services)
   AVA
    As per Retail Audit - Year 2007
    Bottled Water Selling Outlets in Franchise:   5372
                                       OUTLETS         %AGE
   Outlets with Nestle Availability:        4004       74.53%
   Outlets with Askari Availability:        480         8.94%
   Outlets with Aquasafe Availability:       266        4.95%
   Outlets with Others Brands Availability: 1976       36.78%
External factor
   Following are the external factors that affect our
    marketing strategies of nestle pure water.
   More the education more will be the awareness about
    brand and quality food.
   If the income level of people is high then purchasing
    power will be high so they will purchase more
   Consumption behavior of Pakistani people is high so
    they consume more goods
   As Pakistan is Muslim country so we cannot add any
    ingredient which is prohibited in Islam or which is not
   If the inflation rate is high then there will be
    decrease in purchasing power .so inflation
    indirectly affects the company’s sale.
   As nestle water is the branded item so the
    people who are brand conscious will prefer to
    use nestle water .so nestle is focusing more on
    the posh areas.
   Distribution of nestle water is easy in those
    cities where infrastructure is good enough.
   Survival in market especially in the presence of large number
    of competitor is not an easy job. One should always be well
    aware about the environment. what is there competitor doing
    what strategies they are following that is the feedback of
    customer of our products and what customer wants. from our
    information system we came to know about…..

   What are the competitors market making water?
   what price they are charging from customer?
   What type of packing is attracting the customer?
   What is purchasing power of people of a particular area?
   What is the budget of competitors on advertisements?
Our source of gathering information are:
 Research
 Team operating in the marketing
 After gather the required information we
  formulate our marketing strategies and

In pre marketing we segment the market, then
target the market, after targeting we try to build the
image on our target customers and increase the sale
by differentiation.
Market is segments on different parameters such
 Size of a particulars market
 Income level
 Consumption pattern
 Growth of particular segment itself
 Geographic location.
 Age group
   Nestle is targeting mainly on those city in
    which density of population is high such as
    Lahore, Karachi, Faisalabad etc. Nestle is also
    focusing on educated class because they know
    the values of health in life.

   We position nestle water as a safe & healthy
    water for the entire family & for all
    consumption needs. Nestle is famous all over
    the world due to its quality product. So its
    image in the mind of people is very good. The
    positioning of Nestle pure water is very
    positive in the minds of consumers.
    Our service is very efficient as compared to others.
   Nestle is now supplying water door to door for their regular
   Nestle water is available now in many packing they are more
    convenient as well a         s economical.
   For your convenience Nestle water is available in non-
    returnable 330ml, 0.5 litter and -1.5 litter bottles at retail
    outlets and Bulk bottles for Home & Office delivery in 19 &
    12 liters (12 liter is available at retail outlets).
   Their quality check is much better than others so there is no
    need to bother about the quality and the taste of water

1.   Product
2.   Price
3.   Place
4.   Promotion
   Attributes
   Branding
   Packaging
   Labeling
   Product support

                Nestle Pure Water
   Our selected product of Nestle is Nestle pure
    water. Nestle water is consumer goods. As
    consumer goods include:
    1. Convenience good
    2. Shopping good
    3. Specialty good

1. Product quality
2. Product features
3. Product design
   Quality is one of the marketer's major positioning tools.
    Quality has two dimensions level and consistency.
   Product quality means the ability of a product to perform its
    functions. It includes the product's overall durability,
    reliability, precision and other valued attributes. Nestle has
    chosen the quality level that matches target market needs and
   Beside quality level, Nestle consistently delivers the desired
    level of quality to consumers. Always strives for high level of
    quality consistency.

1. Quality
2. Availability
3. Convenient prices

                           It tastes like sweet   Affordable, 1%            Free of germs
                             natural water, 1%    Use for children, 1%
  Water of international                                                    Clean
     standards, 2%                                Artificially purified
  Doctor advised, 2%                                                        Good for health
                                                       water, 0%
  Easily available, 5%                                                      Use while traveling
                                                           Free of germs,
                                                                            Well reputed brand
    Well reputed                                                49%
     brand, 6%                                                              Easily available
     Use while                                                              Doctor advised
   traveling, 8%
                                                                            Water of international standards
                                                                            It tastes like sweet natural water
Good for health, 11%
                                                                            Use for children

        Clean, 16%                                                          Artificially purified water
Brand Awareness
        Ad on Bus, 2%   N.Papers, 2%                               Television
      Banner, 2%                       DK, 2%
    Doctor, 3%                           Others, 0%
   Board/ Hoarding                                                 Relatives/Friends
     Board, 3%                                                     Poster
Already know , 4%                                                  Already know
                                                                   Board/ Hoarding Board
     Poster, 4%
                                                 Television, 51%
 Relatives/Friends                                                 Ad on Bus
           20%                                                     Others
    Nestle water is not lie in necessities so its price should not be
    very high
   Price should be set according to the product demand of
   Price should be that which gives us more revenue.
   Price should not be too low or too high than the price
    competitor is charging from their customers otherwise
    nobody will buy your product.
   Price should be that by those customers are motivated to buy
   Price must be keeping the view of your target market

   Market share leadership
   Product-quality leadership
   Nestle set its pricing strategy based on two
   pricing approaches.
1. Cost-based pricing
2. Competition-based pricing

   Product-line Pricing
   Discount and allowances pricing
   Functional discount
   Seasonal discount
   Promotional pricing

1. Direct marketing
2. Marketing through distributors

   Consumer Product
   Push Strategy
   Purchase state

   Television
   Newspapers
   Magazines
  Future plans
Nestle is planning to enhance its investments in Pakistan and by
the year 2014, its total stakes would reach an aggregate of $374
million. The company has chalked out long-term investment plan.
Nestle is setting up a most modern and latest milk plant with the
cost of $ 70 million which will be operative within next couple of
months. Company would invest to the tune of $209 million in
five years period ending 2009. Nestle is investing $70 million in
milk production by increasing capacity of milk powder by 40,000
tones annually; $44 million would be injected in Sheikhupura
factory, $12 has been allocated for expanding milk collection,
and $31 million in bottled water plants.
The objective of this research was to study marketing strategies
of nestle pure water. From our report it is concluded that nestle
has a good reputation as a strong consumer brand. 66% of the
consumers use Nestle’s products regularly. 60% of the
consumer’s associate quality with Nestle.57.3 % of the
consumers prefers Nestle over other brands of pure water that are
available in the market .66% consumers bought Nestle water
because of its brand image which is of good quality products.
This is also proved by the statistical and graphical analysis of the
data obtained from consumers that they are quite satisfied from
nestle pure water. Nestle formulating a good strategy and they are
trying to go for mass-marketing.
Nestle’s pure water need to expand their customer equity.
Though 57.3% people prefer Nestle over other brands 43% prefer
others. Nestle should benchmark with other brands to compete in
this industry.
 Nestle should improve its promotional activities on television
regarding nestle pure water.
 Nestle’s pure water are expensive so they should decrease their
prices as big competitors like Aquafina enter into this industry.
Aquafina beat nestle in almost every country except Pakistan .So
nestle should defense their position.
58% consumers use this product occasionally, 24%
weekly and 14.7% daily. Nestle should try to
increase this usage rate through new users by
advertising, more usage by convincing people about
the high quality of the juices.

Flavored water should be introduces in Pakistani
market. From this they can differentiae their product
from others and they can get more market shares.

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