Acknowledgement

Praise is to Allah Almighty, the one testing us all at all

times and
making decisions about what we don’t know and can’t
know. Writing
this report appeared to be a great experience to us. It
added a lot to
our knowledge while we were working on this report. If
we say that this
report is one of our memorable experiences in student
life, then it
would not be wrong.
We owe profound gratitude to
MR.Mohsin Ali Shah for stimulating our
creative abilities by assigning this report to me. I am
immensely
obliged to all our fellow students who guided me in
making this report,
without whose considerate attention and interest, it
would be difficult
for me to complete this report on time. Whatever we
have learnt from
them and this Assignment report has put indelible
impression on my mind.
It is my conviction that this learning experience will
always be a source
of help in my practical life and professional career.

Executive Summery

We are analyzing the marketing plan of Nestle which is

an FMCG
company. Our analysis of Nestle will include the current
market
situation and strategic analysis of the company. We will
see the various
strategies that can be used by them for improving their
product. Nestle
has been serving worldwide with its excellence in
product safety,
quality and value. It provides many products which
include dairy
products, beverages, water, and infant dietetic and
confectionary. We
have taken NESTLE WATER for our project report. 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. Further we
will explain
the SWOT, SMART, IMC plan competitive analysis and all
other strategies used by them.

Introduction Of Nestle

Nestle is the leading FMCG company of Switzerland

established by
Henri Nestle. Nestle is serving worldwide with its more than
500
factories in 86 countries comprising almost all continents.
Nestlé’s
product portfolio is more than 500 products all over the
world serving
best to their customers.
Henri Nestlé endowed his company with the symbol derived
from his
name. His family coat of arms, the nest with a mother bird
protecting
her young, became the Company's logo and a symbol of the
Company's care and attitude to life-long nutrition. The Nestlé
nest
represents the nourishment, security and sense of family
that are so
essential to life.
The first product made by Henri Nestlé, a food for babies
who were
unable to breastfeed. His first success was a premature
infant who
could not tolerate his mother's milk or any of the usual
substitutes.
People quickly recognized the value of the new product,
after Nestlé's
new formula saved the child's life, and soon, Farine Lactée
Henri Nestlé
was being sold in much of Europe. Nestlé has been serving
Pakistani
consumers since 1988, when the parent company, the
Switzerlandbased
Nestlé SA, first acquired a share in Milkpak Ltd.

Nestlé’s Vision:
The consumer's voice is the key to Nestlé Pakistan's vision
and
working. Whether you live in the remotest village or the
metropolis of
Karachi, Nestle consumer services team stands ready to
listen to your
concerns and provide answers about our products and
guidance on
matters of health and wellness.
Nestlé’s global vision is to be the leading health, wellness,
and
Nutrition Company of the world. Nestle’ Pakistan subscribes
fully to this
global vision. In addition to that, Nestle Pakistan also
envisions to:
• Lead a dynamic motivated and professional workforce that
is
proud of its heritage and bullish about the future
• Meet the nutritional needs of all age groups through a
diversified
product range that contains an innovative portfolio of
branded
food and beverages of the highest quality
• Maintain long-term growth and deliver shareholder value
• Establishing responsible communication with the consumer
which in turn can provide us a better look into what changes
need to be made to our products
• Strengthen the position as the best career destination for
talented and motivated individuals
• Empowering a system of self-management

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.”

Nestle Pure Life Water & Current Market

Situation
The launch of Nestle Pure Life in December 1998 was a truly
significant
episode in the history of Nestle Pakistan. Nestle Pure Life
was going to
get the entry of Pakistan’s growing water market. At the
same time
Pakistan became the first country where Nestle launched the
new
brand. Nestle Pure Life is a premium drinking water,
produced to the
highest standards of safety and purity as per the website
suggests. It is
ideally balanced with essential minerals like vitamins,
calcium and
many other useful items. According to nestle, pure water
product is the
stasr of nestle having useful ingredients in every drop of
water which
are essential for being hydrated all the time. Capitalizing on
its strong
brand recognition, aggressive pricing and supported by a
strong
marketing campaign, Nestle Pure Life has made very strong
inroads
into the water market in Pakistan. Nestlé PURE LIFE is
available around
the globe today in Canada, USA, Mexico, Brazil, Argentina,
South
Africa, Saudi Arabia, Jordan, Egypt, Lebanon, Turkey, Russia,
Uzbekistan, Pakistan, China, Thailand, and the Philippine

“A social and managerial process where by individual & groups obtains

good food
Launched on the North American market
in 2003, Nestlé PURE LIFE is destined to
become the world’s top and most widely
distributed brand by 2010. Nestle is also
willing and has goal to achieve the $1
Billion enterprise by 2014. Nestle Pure
Life is a premium drinking water, produced to the
highest standard of
safety and purity. The company is seeking 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
throughout the world.
Nestle is leading brand in water market and has left
behind many local
brands which were working before the launching of
Nestle Pure Life.
Now it has maximum market share in developed and
major cities of
Pakistan like Lahore, Karachi, Islamabad, Multan,
Hyderabad and many
others. As we have discussed earlier that Nestle is going
to become the
fully market leader of water market in Pakistan, signs
are clearly visible
to achieve the set point of Nestle. Nestle Pure Life is also
the star
product of Nestle Pakistan and most probably all over
the world where
Nestle Pure Life exist.

Information and data pertinent to the

market’s
current situation.

They keep the information of the other companies what

they are
offering. Try to improve their strategies from others so
that they can
promote their product more. like more companies are
now coming in
the market so there is more completion in the market
and they have to
be up to date from the current situations.
 Company’s marketing goals and
objectives

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 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 continues to maintain its commitment to follow
and respect all
applicable local laws in each of its markets.

SMART Analysis

SMART is an acronym which tells us that when ever we set

any
companies objectives they should be,

S = Specific
M= Measurable
A = Actionable or Achievable
R = Realistic
T = Time Frame

Market Share
Nestle is now a days willing to have more and more
market share so
that it could achieve the goals that are set. The goal for
market share
will be discussed below.
Nestle occupied 85% of drinking water market in all over
the Pakistan.
In Lahore
Nestle Pure Life has 69%of total market, Sparklet has
13% and Cool
have 11% and remaining 7%are kept by other local
companies. In
Karachi 50% of market is kept by Nestle and 25% by
AVA and
remaining 25% is kept by other local companies. As for
as Islamabad is
concern Nestle Pure Life has 65%of market Share.
They have certain goals and objectives
which they want to achieve. They want to
create and promote their products to create
value for their product. They have the
resources for increasing their product’s
quality and compete it with the other
companies. They conduct researches for that and try to get
their
objective which they have decided. They are promoting their
product
by creating customer awareness.
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.

The Percentage Use of Nestle

Pure Life and its Competitors in
Islamabad
Hierarchy details of marketing and sales
department
Marketing Manager

Market manager is an employee who is responsible for

planning
and controlling its marketing activities and budgets
.Marketing
manager take cares the promotional strategies of the
products.
Manager try to use innovative ideas for the improvement
of product in
market.

Finance manager
The field of finance covers the economics of the
contingent claims. Financial economists study the valuation
of these claims, the markets in which they are traded, and
their use by
individuals, corporations, and the society at large.
Finance manager and marketing manager are related with
each other
to meet their marketing targets. It is important because
alone
marketing manager can not promote any marketing strategy
without
any budget.
Market Segmentation and Targeting
Strategy and
Consumer Profile Analysis
Market Segmentation
For getting the maximum market share and respect of
the product in
the minds of the consumer, as per our observation and
market survey
we have concluded that Nestle Pure Life Water’s
segmentation is based
on two points.
• Geographic Segmentation
• Demographic Segmentation

Geographic Segmentation
The company has divided its geographic segmentation in
several
regions. First they have the segmentation of a whole country
and from
each provincial capital, they divided it’s areas into north,
east, west,
south. So that it could be easy for the company to work
efficiently on
it’s supply chain management.

Demographic Segmentation:
Nestle Pure Life isn’t a supreme quality product that only the
high class
uses. The product is for all. Infant to seniors. There is no age,
sex,
income and any other kind of limitation on use of the
product. The
product is for all. Anyone can use the product as per need.

Targeting Strategy
According to our observation and market survey, we
have concluded
that as such there is not set demographic techniques to
set the specific
target market. Because, water is something that
everyone uses.
Everyone can use any size of bottle that Nestle is
offering. There are
some variations that can be made throw OUR
OBSERVATION but not
from the company.
Nestle Pure Life comes in four different sizes. These four are
targeting
different types of people and lifestyles.

This is the smallest size of Nestle Pure Life Water of

0.5L. This size is being heavily used by the consumers

in place of soft drink. University and Colleges are also

included in its target market of this size. But the
product is used by everyone in the society also. It is not
only specified people that have been discussed above.

This is the second size of the Nestle Pure Life Water

which is about 1.5L. This size is being used in mostly
meetings. You can say that any kind of organizational
meeting or any other social meeting, this product is
being used.

This is the third size of the Nestle Pure Life which is

used in mostly houses and offices in the waiting areas
(offices)
This is the fully household product and also using in
executive rooms in offices with the dispensers. This
Nestle Pure Life Water Bottle is also very helpful in
many dispensers available in the market with good
options.
 Consumer Profiling Analysis
The product is being used by many people of Pakistan
and there is no
restriction in use of Nestle Pure Life as the is not that
kind of product
with specific characteristics. Everyone is free to use
Nestle Pure Life.
The above table shows that Nestle Pure Life is for
all. It is not necessary that Nestle Pure Life Water
Cans can only be used by higher income persons.
Because the data is linked with the regular use of
Nestle Pure Life Water Cans. Means income can be
considerable for the people who consume Nestle Pure
Life on daily
basis. If we exclude the factor of daily basis the answer
will be No.
there is not restriction to use Nestle Pure Life for
Muslims and non
Muslims.

Product Strategy and FAB Analysis with

Product Line
The product was launched due to certain reasons and
problems faced
by the government and other factors. There are many areas
in Pakistan
where we will not find pure water but the infiltrated water.
That could
harm your body and cause the major problem called Diaria.
That is one of the harmful diseases which can also lead to
death. To overcome this problem, Nestle
decided to launch its water product by
acquiring the water plant of AVA Company.
Now the plant is under control of Nestle
Pakistan Ltd. Nestle launched it’s product by offering
very useful
ingredients like vitamins, calcium and many other useful
things which
gives the human body more than the water. Nestle is
available in the
market in four good sizes according to the need and as
per targeted
and segmented market. 0.5L, 1.5L, 12L and 19L. These
sizes are
complete sized according to the need of the customers.
To understand the full ingredients of the water, we
would like to show a FAB Analysis.
The above chart shows the ingredients and level of them
in Nestle Pure
Life Water Bottle. The water is also tested on the basis of
above
ingredients in the laboratory of USA, Pakistan, and
Thailand etc…
Here is one more table which will clearly define the FAB
Analysis of
Nestle Pure Life Water.
 FAB ANALYSIS

This is the complete FAB Analysis of Nestle Pure Life

which should be
known to all the consumers for powerful CRM
Feature
 The Pricing Strategy:

We can easily observe that Nestle itself is not

taking active part in social welfare. And on the
other hand, we see the lower prices of the
product as compared to the other FMCGs
Company’s products like Unilever, Colgate

Palmolive and Procter and Gamble. If we look at the

prices, we can
observe that Nestle is also using its name for the
promotional activities
and pricing strategies also. They have to maintain their
level of
efficiency and always provide the best at best price.
Nestle cares about
the customers. As the time is of inflation, nestle is trying
to overcome
the pricing problems to the extent they can do. Nestlé’s
point of view is
“Only by understanding their needs can we serve our
consumers to
the fullest”.
Profit earning is the core aim of every company but in
case of nestle
their profit margin is small just for the sake of customers
trust and
happiness. Only a few amount of profit is collected from
pure life water.
Nestle always strive to give superior product at low rates.
Nestle is also
one of the leader of retaining their customers. This is one
reason of
their success. They use the simple formula for the price
that is Cost +
Profit.

Market Distribution and Channels

Strategy

Nestlé Pakistan's supply chain and

distribution makes sure that Nestlé
products are accessible, no matter where
consumers are in Pakistan. Nestle aims to
put together processes from the farm to
markets, and make sure products are
distributed to the consumers at the
correct time, the right cost and in the
accurate quantities. In the first quarter of
2006, Nestle proved it by delivering an amazing 136
million kg of
Nestlé products in Pakistan.
The mission of Nestle Supply Chain is to:
1. Optimize and consolidate resources and processes for
a low-cost

but efficient
2. Develop and manage simplified and effective supply
network to
achieve a high level of service
3. Create a continuous improvement culture driven by
performance
measures and reward.
To accomplish their tasks, the company chooses both
marketing
channels method that is conventional and vertical. In
conventional
channel, Nestle Pure Life is distributed among the
wholesalers of
Pakistan and from wholesalers; the products are
distributed to retailers
and from retailers, the products reaches to ultimate
consumers. Nestle
Pure Life is also delivered directly to the consumers
throw vertical
distribution channel. In this channel, the cost can be
minimized.

Market Positioning Strategy, IMC Plan,

Perceptual
Mapping and USP
There are certain points on which they occupy their
customers and
those points are very helpful in retaining their
customers. There are
number of water products available in Pakistani market
including
Springley, Sprarklet, Aqua Fina, Kinley, Deja Blue and
many others. But
Nestle Pure Life attracts its customers throw many
reasons. The main reason is Pure Water
which is the name of this product.
Rests of the water products are
using chemicals which can be
harmful for the human body but
Nestle Pure Life is the only water
product which is pure in nature.
That is also the unique selling
point of Nestle Pure Life. This is
the most powerful point that is in
the mind of the customers while
purchasing any water bottle in their routine life. The
brand name is
also very important for the consumers. The slogan of
Nestle is “Good
Food Good Life”. That is very attractive slogan people
can attract from.

It puts the perception in the minds of people that they’re

being offered
good products for their healthy lifestyle. If you look at
the logo of
Nestle, you’ll get to know that a bird is feeding the
children. Obviously
a mother can’t deceive the children. Nestle pure life is a
brand of
nestle which explains a big symbol of quality to
customers.
Nestle Pure Life shows in their ads about the purity of
water and the
water need for your body. In its launching
advertisement, the company
advertises Nestle Pure Life very successfully. In that
advertisement, a
lady is drinking Nestle Pure Life Water and then it goes
towards inside
the body to show the functions of pure water. That was
the awesome
commercial that boosted the sale of Nestle Pure Life.
Nestle is also
advertising on famous websites like you can observe
that whenever
you will login to your facebook account, the ads of Nestle
will be there.
There are number of sign boards and banners you will
see in the cities to aware people about the products of
Nestle. Thus, Nestle is using all
types of media to advertise their products in anyway.
When Nestle Pure
Life was launched, they distributed the free samples of
0.5L bottles for
market testing and for their advertising purpose. Then a
short walk
was also arranged for the sake of good health and
seminars was also
conducted to make sure about the pure water needed
your body.
To understand the depth of Positioning, we will divide
into three steps.

Personal Selling
A direct Vendor Selling Activity was coordinated and
carried out during
the summer months of June, July, and August 1999 in
Lahore. A team
of vendors, clad in branded T-shirts, caps and jackets,
sold chilled 0.5
liter bottles to traveling customers on all major
intersections. The
brand got great mileage out of this innovative idea of
personal selling
in terms of brand awareness, paid trial, image as well as
real sales.

Publicity
Pure Life was launched on 14 December, 1998 in Karachi
with a huge
amount of enthusiasm and positive response shown by the
locals. The
successful story of its launch was printed in all the local
newspapers
the next day. This greatly helped in creating awareness of
the brand
and gave its introduction a good start.

Sales Promotion
Specific promotions of Nestle Pure Life were arranged in
some of the
key outlets of Lahore. Elaborate shelf space was
acquired for product
display and specially designed POS material was
extensively used to
promote sales. On a 12-bottle purchase of 1.5 ml, one
1.5 ml bottle
was offered free to consumers. Similarly on a 6-bottle
purchase of 1.5
ml, one 0.5 ml bottle was offered free. Regarding trade
promotion, the
retailer was also given an additional discount of 4 %
during this sales promotion. Not only did the sales of
Nestle Pure Life grow
tremendously during the promotion, these continued at
a higher pace
even after it was over.
The above map shows the ranking of different products
in the eyes of
customers and retailers as per our survey. In this map,
Coca Cola’s
Kinley and Pepsi’s Aqua Fina are the real time
competitors of Nestle
Pure Life. Nestle Pure Life is on the top of the map
having larger
market share. You can see the pie chart of market share
in the diagram
shown here. There are other products available in the
market like Deja Blue, Dew Drops, and Springley etc…

The above chart shows the market share of Nestle in

three major cities
of Pakistan. Here are Lahore, Karachi and Islamabad.
Lahore’s market
share is about 60%, Islamabad’s have 68% and in
Karachi, the market
share is about 50%.
(The data is not considered 100%. It is just
comparison.)
 Competitive Position
Competitive position of Nestle tells that how much it’s
competing its
competitor and what it has unique from its competitors.
It tells its
position in the market that where it stands in market.
And also tells us that what its competitive position is in
the market. So we would
analyze its position from two aspects
• SWOT Matrix Analysis of the company
• Core Competencies & Key Success Factors

SWOT Analysis of the Company

SWOT analysis would tell us in better way about the
competitive
position of the company. Following is SWOT analysis of
the company.

Strength
• Strong Brand name (NESTLE LOGO & FAMILY BRAND)
• Pure Drinking Water in market
• Mineral Product (Free of chemicals)
• Only brand in the area maintaining its quality and taste
• It has largest market share
• Ease of availability of their products all over Pakistan
• Immense product range and huge diversification leads
to reduce
risk.
• High quality standards

Weakness
• Communication is weak
• Lack of Awareness
• Weak Distribution Channels
These distributors, though observing the rapid increase
in customer
demand refuse to hire new, more efficient and
innovative staff that
would take the organizations to rise rather they stuck to
their old staff
members.

Opportunities
• Concentrating on these areas of weakness can
increase sales
• It has opportunity to advertise its product in better
way.
• It has strongest opportunity to increase its product line
by
making segments in mineral water. Mineral water should
be of different
taste E.g. like AQUA FINA in USA has introduced mineral
water of
different taste. So it captured the market.
• By increasing product line it can also increase its sales.
Threat
• Segments are being shared by competitors
• Under cutting by competitors.
• Uncertain conditions will affect the sales

Core Competencies & key success factors

A) Innovative Product
Nestle first of all introduced innovative product in
Pakistan. Some of
core competencies of Nestle are given below
• Pure Water
• It’s free of Germs
• It is free of chemical
• It includes different vitamins in water which increase
its purity
and make this mineral water unique from others
• Health Drinking Water. Because it includes vitamins
which
prevent its users from different diseases.
• Nestle sponsors different events
• Continuous improvement
• Social responsibility
So core competency is basically the skill that a company
has. As Nestle
Mineral Water has this core competency. If Nestle meet
these core
competencies, it can grow it sales and revenue. Then it
can also
differentiate its product from others. So these are key
factors to
achieve success and meet goals.

Competitive Analysis
Competitive analysis includes the comparison of one
organization with
its competitor. It differentiate product and tells which
product stands at
which position. It tells about the differentiation of
characteristics and
weaknesses of the product with its competitors.
As we know that more important competitor of Nestle is
Aqua Fina.
STRATEGIES FOR COMPETITIVE ADVANTAGES

Every product on the shelf, every service and every

customer contact
helps to shape this image. A Nestlé brand name on a
product is a
promise to the customer that it is safe to consume, that
it complies with all regulations and that it meets high
standards of quality.
Customers expect us to keep this promise every time.
Under no
circumstances will we compromise on the safety of a
product and
every effort must be made to avoid hazards to health.
Likewise,
compliance with all relevant laws and regulations is a
must and is not
negotiable. People, equipment and instruments are
made available to
ensure safety and conformity of Nestlé products at all
times. The effort
is worth it. Companies with huge quality standards make
fewer
mistakes, waste less time and money and are more
productive. They
also make higher profits. Quality is our most successful
product. It is
the key to our success, today and tomorrow.

Other marketing strategies adopted by the

company

In future two competitors of Pure Life are going to launch

their water in
the market which are Pepsi & Coca Cola. As their
competitor will
advertise their product at very high stage so people will
get awareness
about drinking water and nestle pure life can achieve a
great market
share in future because people can see that our water is
getting rough
day by day and there is a need for pure drinking water to
survive in the
world.
For these opportunities company is going to launch an
other plant for
drinking water next year.
Firstly Nestle pure life was focusing on product and
pricing strategy but
recently it’s focusing on marketing strategy to create
customer
awareness of the product in those areas which are far
away.

Marketing Financials
In marketing financials of the Nestlé, advertisement
budget is low
because their profit margins for nestle pure life is only
5%.They have
weak advertisement. For increasing their sales they have
to increase
segmentation with more effective strategies. If they will
increase their
product line then their sales would be automatically
increased and
after that profit margin will increase. Then they can
promote more their
product by advertising and tools like this .
GAP Analysis

GAP analysis stands for identification of GAPS in the

market, which a
company can capitalized upon. This means that the
difference of
customer wants, and what company is giving. The
remaining portion is
called GAP Analysis. GAP Analysis for company is given
below.
If we compare Nestle with Aqua. Then we would come to
know that
Aqua Fina is providing mineral water of different tastes
in USA. And
sooner it would introduce mineral water of different
tastes in Pakistan.
But if we see Nestle, it’s only giving pure water of one
taste. As
customer wants different taste in water. So this is GAP
analysis
between company and customer. Major difference is of
different
segments. So Nestle should introduce different tastes in
water to meet
customer requirements.
Problems according to the company
Nestle is very much afraid of current economic condition
of Pakistan as
the company is willing to become the $1 Billion
enterprise till 2014. Nestle should contact to the main
head quarter situated in Switzerland
for financial, economic, strategic support so that the
goals of Nestle
Pakistan could be achieved. One more thing that is
possible that
company should made some agreements about their
business plans so
that the company could able to work with stability.
The group is willing to enhance its product line but due
to some
internal and external reasons along with security, the
company is
facing the shortage of producing certain products which
have demand
in the market.

Solution
The company should buy the existing plants by any mean in
Pakistan
to fulfill the demand of market. Because to setup a new plant
can be
costly for the company. It is also possible that company
should work
with other small companies to meet the demand. There
should be very
low probability of loss on the goods as the brand image is so
strong in
Pakistani market about Nestle.

Problems according to the group

analysis
The company should make huge expenses on
advertisement in rural
areas of Pakistan to create awareness in the mind of
local area's
people.
The company should held seminars and meeting for
the promotion of
Nestle Pure Life.

Strategies recommended for rectifying

problems
They should increase their product quality as now a day they
are facing
problem of impurity of their products. They have to improve
the
marketing strategies. So that they can capture market
and improve
their sales.
Nestle is the world leader in FMCG industry. People trust
on the
products launched by the company even the product is
facing some
problems.
Nestle was doing its good job in past but now it is facing
some
problems of low quality of their products. Nestle is sued
by someone
they claim that they are doing unethical business. They
are mixing
unhygienic things which can cause damage to
customer’s health. Its
example is that their water is not pure and good for
health. You can see
dust partials in Nestle mineral water when you keep it in
sunlight that
shows its product quality is down. Now they have to do
more making
their strong position in market because when you lose
your image in
customer’s eye then it is difficult to renew their image.