Nestle Waters - DOC by Hannan90

VIEWS: 930 PAGES: 18

									                     NESTLE WATERS

Nestle Waters, the world’s leading bottled water company, has built a solid reputation on
the quality and purity of its products. Established in 130 countries, with a portfolio of 72
brands, Nestle Waters continues to meet consumer needs by keeping its wide variety of
products flowing through strong distribution channels .Nestle Waters has 100
manufacturing sites operating in 38 countries. With 2007 sales of over $10 billion and a
market share of 19.2%, Nestle Waters has emerged as a substantial player in the
flourishing bottled water market. Nestle Waters deals with water distribution and supply
in hygienic manner. This company itself employs lots of its resources on research and

                       MISSION STATEMENT
Nestlé 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, Nestlé contributes to your
well-being and enhances your quality of life.
                    VISION STATEMENT
                 We envision Nestlé to grow in the shortest

            Possible time into the number one food company in

Pakistan with the unique ability to meet the needs of consumers of every age
                       group from infancy to old age,

         For nutrition and pleasure, through development of a large

              Variety of food categories of the highest quality

             We envision the company to develop an extremely

          Motivated and professionally trained workforce, which

          Would drive growth through innovation and renovation

          We aspire, as a respected corporate citizen, to continue

            Playing our due role in the social and environmental

                           Sectors of the country
   Nestlé'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.
   Nestlé does not favor short-term profit at the expense of successful long-term
    business development.
   Nestlé 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.
   Nestlé 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.
   Nestlé 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.
   Nestlé continues to maintain its commitment to follow and respect all applicable
    local laws in each of its markets.


Nestlé was founded in 1866 by Henri Nestlé with headquarters in
Vevey, Switzerland. It has employed around 250,000 people and
has factories or operations in almost every country in the world.


It is one of the world's biggest food and Beverage Companies.


Nestle offers a variety of brands of which the most well known
are Nescafe, Nestlé Kit Kat, Nestlé juices and Nestlé bottled
waters. Nestlé’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 1992, Nestlé was the first company to dare to launch a
mineral water, Valvert. Today Nestlé Water is established in 130
countries and markets about 70 different brands.

In 1998, for the first time in its history, Nestlé associated its
name with bottled water “Nestlé Pure Life”.

The brand was launched in Pakistan and soon appeared in
Brazil, followed by Argentina, Thailand, the Philippines, China,
and Mexico in 2000. In 2001, India, Jordan, and Lebanon
followed, and in 2002, Egypt, Uzbekistan and the United States.

Today the Nestle Pure Life brand is present in 20 countries
around the world, across all continents - Asia, Near East, South
and North America and Europe.

Wherever it is to be found around the world, Nestle PURE LIFE
answers some crucial consumer needs, focused on three core
pillars: Trust, Quality and Service.

Nestle PURE LIFE offers an ideal balance between a healthy
supply of minerals and a pleasant, refreshing taste, making it
suitable for the whole family. It contains essential minerals such

       Calcium:     necessary for building strong bones and teeth,

Magnesium:necessary for muscle contraction and
                        transmission of pulses.
                     Nestlé Water Policy
As a leading food and beverage company, water is a key priority for Nestlé,
whether it's for manufacturing Nestlé's food products, for their preparation by
consumers or for bottled waters. To help assure a long term, high quality,
adequate water supply, Nestlé supports the sustainable use of water. That is
why we strictly control the use of water in the Company's activities and strive
for continuous improvement in the management of water resources.

The Nestlé Water Policy compliments the Nestlé Policy on the Environment
and includes the following:

   1. Water is essential for nutrition. Nestlé, through its Perrier Vittel
      Company, provides a wide range of pure, safe, wholesome and
      convenient bottled waters of high quality to meet the increasing and
      varied needs of consumers throughout the world. Protection of springs
      and their surroundings is of primary importance in this endeavour.
   2. Nestlé directs its worldwide research and development network towards:

       The innovation and renovation of its products and processes,
        including manufacturing methods that minimize water consumption
        and waste water generation; and
       Scientific research conducted at the Perrier Vittel Institut de l'Eau
        that is centered on the physiological and quality aspects of water.

   3. Agricultural raw materials are dependent on water. Although Nestlé is
      generally not involved in the production of raw materials, it supports
      and encourages sustainable, environmentally sound farming methods,
      including best possible practices for water use and conservation, and
      gene technology. As a raw material for food processing, water must
      satisfy both local legal requirements and internal quality criteria.
   4. The Nestlé Environmental Management System (NEMS) ensures the
      continuous improvement of Nestlé's environmental performance,
      including management of water resources: objectives are established,
      progress is monitored, results are checked and corrective and
      preventative actions are implemented.
   5. Nestlé strives to achieve optimal performance in its manufacturing
      activities, including water management:
           Without compromise to the safety and quality of its products,
              fresh water use is reduced as much as possible and, wherever
              feasible, water is reused and recycled; and
          Used water is treated and returned to the environment according
            to local legislation; where none exist, internal Nestlé standards
            are applied.
   6. As part of its broader commitment towards the good of the community,
                    Promotes, in co-operation with health authorities, the
                      importance of using safe water for food and drink
                      preparation to consumers; and
                    Provides education, supports initiatives and fosters
                      awareness on the importance of water resource
                      conservation among employees, governments, local
                      communities, schools, industry, consumers and other

1866   Company's foundation

1905   Merger between Nestlé and Anglo-Swiss Condensed Milk Company

1929   Merger with Peter-Cailler-Kohler Chocolate Suisse's 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)

       Nestlé acquires Victor Schmidt & Söhne, Austria's oldest producer of confectionery,
       including the famous 'Mozartkugeln'.

       Nestlé, through the Perrier Vittel Group, expands its mineral water activities with
       the outright acquisition of San Pellegrino.

       Nestlé acquires Spillers Petfoods of the UK and strengthens position in the petfood
       business which began in 1985 with the acquisition of the Carnation Friskies brand.

       Divestiture of Findus brand (except in Switzerland and Italy) and parts of Nestlé's
       frozen food business in Europe.
       Divestiture of Hills Bros, MJB and Chase & Sanborn roast and ground coffee
       brands (USA).

       Acquisition of Power Bar.

                LIFE WATER:
 Nestle Pure Life is a premium drinking water, produced to the highest standard of safety and
 purity. Their aim is to provide customer with pure drinking water on suitable prices make the
 product as convenient as possible. According to their claim that they provide the best food
 through out the world. For Nestle Pure Life they adopted the societal and marketing concept.
The main objective for the SBU was to be number one selling bottled-mineral water in
Pakistan. This objective was hoped to be accomplished by setting the following further

   1)   Safety:
To provide the consumers with a safe drinking water: Consumers want reassurance. The
Nestle name on the product is an assurance of quality for the consumer. Also related to
safety is the fact that the water is captured in a safety environment and undergoes
rigorous treatment to meet universal quality standards. The water is de-mineralized by
distillation. Mineral salts are then added, in accordance
with a strict formula developed. The bottling line is also subject to strict sanitary
regulations: an air-controlled room houses the filing machine, and the bottles and caps are
sterilized. Quality is a continual process and is monitored during each production phase -
some 200 controls. Packaging also receives special attention. Each Nestle Pure Life bottle
and the 5-litre PET jug have a special cap and tamper-resistant band. This way, the
consumer can tell immediately whether the bottle has come straight from the plant or if it
has been tampered with.

2).To   offer consumers a healthy product:
Remineralization let Nestle offer consumers a balanced, refreshing and healthy product,
the product's second key objective. The formula developed for Nestle Pure Life contains
minerals such as calcium, which is essential for bone development; magnesium, which is
recommended for muscles and the central nervous system; bicarbonates, which are
particularly useful for digestion; and sodium, which helps regulate hydration in the
human body. Overall mineralization is light (200 mg per liter) and suitable for the whole

3) To offer an affordable mineral water:
As well as being pure, safe, healthy water, Nestle Pure Life is affordable and convenient.
No matter what the format, Nestle Pure Life is sold consistently at popular prices
affordable for a large portion of the population. The 1.5-L bottle is offered for Rs. 22 --
cheaper than most of the other water brands of the same size. The 0.5 L bottle was
initially offered for Rs. 8 but now is sold for Rs. 12.The increase in price has been caused
mainly due to inflation and competition.
4) To make the product as convenient as possible:
 This was the product's fourth objective. Due to its well-balanced mineral content, Nestle
Pure Life can also be used for cooking and to prepare tea or coffee. The brand is available
in several formats suited to a variety of consumption patterns (50cl, 1.5 litre, 5 litre).The
idea is clear: to be close to the consumer.In other words, Nestle Pure Life must be
available in all sales and restaurants outlets and anywhere else consumers young and old
are likely to buy or drink water. These objectives can be very well matched with the
mission statement of the organization. Consider the following 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 well-
being and enhances your quality of life. ”Referring to the first part of the mission
statement, Nestle did provide the consumers with the best bottled-mineral water, as it is
number one in the bottled-water market in Pakistan. According to their claim that they
provide the best food throughout the world, Nestlé Pure Life is available throughout
Pakistan in a number of outlets because of the intensive distribution strategy of the firm.
Secondly, Nestle was very successful in identifying the need for safe and pure drinking
water, and thus came with the wonderful solution of providing the Nestle Pure Life water.
Referring to Nestlé Pure Life, it has all the essential minerals, which a human body
needs, as well as, it is pure and safe. Thus it improves one aspect of our lives. By
drinking healthy water, people can escape different fatal diseases like Hepatitis B and C
(one of the causes of which being the contaminated water).Ultimately, the quality of life
is enhanced as portrayed by the mission statement.

  Marketing strategies are being made after the analysis of external and internal
  External factors include the market threat sand market opportunities, while
   internal factors include the strength and weakness of product.

  Nestle water is no. 1 selling water in Pakistan.
  Nestle is world famous brand name and people trust them.
  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
  Communication is weak.
  Lack of awareness.


  Now a days 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.
  Increase in product line.

  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.
  Uncertain conditions will effect the sales.
The sales strategy which Nestle adopted for Pure Life water is Availability & Visibility.
To increase sales and gain profit the company has to provide proper supply of product in
the market. All the time company remains busy to make the availability of their product
in the market. In departmental stores and shops the Pure Life Water is so placed that it is
visible for the customers.

   AVA

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? Etc««

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 as;
    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 customers.
    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.

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 wants. 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
   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
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 Nestles products regularly. 60% of the consumers 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 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. Nestles 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.

To top