"Nestle Waters - DOC"
NESTLE WATERS INTRODUCTION :- 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 development. 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 NESTLE BUSINESS PRINCIPLES 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. ORGANIZATION PORTFOLIO ESTABLISHMENT: 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. COMPANY TYPE: It is one of the world's biggest food and Beverage Companies. BRANDS: 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. BRAND PORTFOLIO 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 as: 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, Nestlé: 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 stakeholders. COMPANY FROM FOUNDATION TILL NOW 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, 1995 including the famous 'Mozartkugeln'. Nestlé, through the Perrier Vittel Group, expands its mineral water activities with 1997 the outright acquisition of San Pellegrino. Nestlé acquires Spillers Petfoods of the UK and strengthens position in the petfood 1998 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. 1999 Divestiture of Hills Bros, MJB and Chase & Sanborn roast and ground coffee brands (USA). 2000 Acquisition of Power Bar. MARKETING PHILOSPHY FOR NESTLE PURE 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. OBJECTIVES OF NESTLE PURE LIFE : 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 sub-objectives. 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 family. 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. . SWOT ANALYSIS OF NESTLE WATER:- Marketing strategies are being made after the analysis of external and internal audit. External factors include the market threat sand market opportunities, while internal factors include the strength and weakness of product. STRENTH 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. WEAKNESS 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. Communication is weak. Lack of awareness. ORRORTUNITIES 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. THREATS : 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. SALES STRATEGY OF NESTLE PURE LIFE WATER: 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. Competitors:- MAIN COMPITITORS ARE AVA AQUAFINA KINLAY ASKARI NAEMAT GREEN LAND (PURE WATER ) MARKET INFORMATION SYSTEM(MIS) 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«« PRE MARKETING MIX 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. SEGMENTATION 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. TARGETING 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. POSITIONING 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 DIFFERENTIATION 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. PRODUCT 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 PRODUCT ATTRIBUTES 1. Product quality 2. Product features 3. Product design PRODUCT QUALITY 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. PRODUCT FEATURES 1. Quality 2. Availability 3. Convenient prices PRICE :- 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 public. 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 more. Price must be keeping the view of your target market INTERNAL FACTORS AFFECTING PRICING DECISION Market share leadership Product-quality leadership COST :- EXTERNAL FACTORS AFFECTING PRICING DECISIONS GENERAL PRICING APPROACHES Nestle set its pricing strategy based on two pricing approaches. 1. Cost-based pricing 2. Competition-based pricing PRODUCT MIX PRICING STRATEGY Product-line Pricing Discount and allowances pricing Functional discount Seasonal discount Promotional pricing PLACING :- DISTRIBUTION CHANNELS 1. Direct marketing 2. Marketing through distributors PROMOTION:- FACTORS IN SETTING THE PROMOTION MIX Consumer Product Push Strategy Purchase state PROMOTION MIX:- ADVERTISING MEDIA 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 CONCLUSIONS :- 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. SUGGESTIONS :- 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.