Nestle pure life Brand Inventory

Table Of Content

Contents
MISSION STATEMENT .............................................................................................. 2 Introduction: ................................................................................................................... 2 Value Chain Analysis .................................................................................................... 4 Market Analysis ............................................................................................................. 5 Product life cycle ........................................................................................................... 6 Sales pattern .................................................................................................................. 6 Competitors Analysis ..................................................................................................... 7 SWOT ANALYSIS OF NESTLE ................................................................................. 8 Consumer behaviour .................................................................................................... 10 SEGMENTATION ...................................................................................................... 11 TARGETING:.............................................................................................................. 11 POSITIONING: ........................................................................................................... 11 PRODUCT: .................................................................................................................. 14 Pricing Strategy ............................................................................................................ 15 Distribution Strategy .................................................................................................... 16 Communication Strategy ............................................................................................. 16 Promotion of Nestle Pure Life water: ...................................................................... 16 References .................................................................................................................... 20

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Nestle pure life Brand Inventory

Nestle pure life Bottled water

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.

Introduction:
Nestle is not only Switzerland's largest industrial company, but it is also the World's Largest Food Company. The mission statement emphasizes on the fact that Nestle products are available in nearly every country around the world. Wherever one may live, only Nestle can provide the best and most reliable food and beverage products to meet his/her needs throughout the day, throughout the life. Especially, people on the move want to be able to find good food wherever they are, whatever the time of day. They are often reassured that they will find well-known brands out of home. This statement also reflects the image of high quality products that Nestle offers. Nestle has the advantage that it offers caterers, fast food chains and other restaurants a complete range of high quality ingredients, base products and meal components, as well as leading consumer brands such as Nescafe. Quality is the cornerstone of the success of the Nestle Company. Every day, millions of people all over the world show their trust in the company by choosing Nestle products. This trust comes from a

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quality image that has been built up for over a century. Therefore, the quality of the products ultimately enhance the quality of the consumers life. In addition, the mission statement declares that Nestle has the ability to anticipate consumers needs and create solutions. Nestle has proven this ability a number of times by introducing new products that were required by consumers. Especially, the launch of Nestle Pure Life in Pakistan proves the accuracy of this fact. In Pakistan, there was a need for safe and healthy drinking water and Nestle responded to this consumer need by introducing Nestle Pure Life. Finally, it is quite evident that the organization has actually implemented its mission statement in the business practices that it carries out. Also, the mission statement has been an important guideline for any SBU that the firm has started and this is portrayed by the success that each SBU of Nestle enjoys

Water
i) Nestle Pure Life: The launch of Nestle Pure Life in December 1998 was a truly historic event. This marks the Nestle MilkPak`s entry into the countrys fast 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. It is ideally balanced with essential minerals. It is available in five convenient sizes of 330ml, 500ml, 1ltr, 12ltr and 19ltr. Capitalizing on its strong brand recognition, value pricing and supported by a strong marketing campaign, Nestle Pure Life has made very strong inroads into the water market in Pakistan.

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Value Chain Analysis

Inbound logistic
Purchase plastic bottles(different size) Setup of Water filing plant Establish warehouse in deferent cities

Operations
Water filling Packaging maintenance

Outbound logistic
Deliver to warehouses

Marketing sales
Establish channels Established 4ps Sales force

Services
Distribution of bottles home Delivery of 12 & 19ltr bottles

Inbound logistics
In inbound logistics of nestle pure life purchase plastics bottles form supplier. Establish ware house in different city, nestle pure life has ware house in following cities lahor, Islamabad, Karachi, Faisalbad, Sialkot, Gujranwala, Gujrat and Jehlum.

Operations
In out bound logistics we see our operations. Nestle operation are water filling packaging, and account maintenance. Nestle pure life operation are held in Shakhupura, and Islamabad. in 2001 we acquired the AVA water factory in Islamabad. It became a fully owned unit in 2003, and we immediately instituted a programmed of major improvement to bring the facility on par with international standards. In these year nestle introduce more efficient machinery. This has helped us speed up production. Nestle handle their account for exclusive sale in their regional office.

Outbound logistics
in this step of value chain nestle pure life deliver their product to their house. Which operation has be done that deliver to their regional offices according to their demand.

Marketing sales
Here we talk about establishing 4ps price, product, placing and specially promotion. Nestle pure life charge value price. Product designing nestle produce tasty water in plastic bottles. That product is place in major city of Pakistan. Nestle promote their produce by personal marketing, TVC, sales promotions and public relation.

Services
Nestle pure life provide the service home office delivery. Distribute bottle for exclusive selective on shops, restaurants, hotels, etc.

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Market Analysis
Over the past seven years, demand for bottled water has grown by leaps and bounds in countries in Asia, the Trans-Caucasus, Middle East and North Africa. The bottled water market in Pakistan is witnessing annual growth rates nearing 40 percent, the market of bottle water is growing to much rapidly, Pakistan population is 18million. From which 7% to 8% people use bottled water. According to economic survey of fiscal year 09-10 Pakistani people consume 46.6billion for gas, electricity and water, respectively. Every year 1.7billion litter water consume bottle estimate sale of water is 20 billion. And this big market nestle pure life is market leader with the market share of 48% Pakistani population Growth rate of this market is People use bottled water Water drunk in fiscal year 09-10 Consumption Nestle market share 180million 40% 8% 1.7billoin litter 20billion Rs 48%

Why bottled water use?

Almost three billion people out of a global population of 8.5 billion could be facing water shortages of clean water by 2025. Over 80 percent of these people would most likely be found in the rural areas of developing countries. this looming threat becomes more disturbing considering that there is enough groundwater across the various world regions to guarantee water for all human beings. One major reason for the growing water scarcity is that only a fraction of global freshwater is actually used by people; its major share is diverted to industrial and agricultural purposes, and is used for many other things besides producing food. In Pakistan, only three percent of the nations sweet water resources are used by households, for various purposes including cooking and drinking. Yet the debate about access to water in Pakistan is dominated by enhancing productivity or meeting energy needs, instead of ensuring the basic human right access to clean water. (Syed Mohammad Ali) Pakistan lacks reliable statistics on water supply for human consumption. Researchers point out that the varying estimates often overlook whether available water is safe or sufficient. Available piped water in Pakistan is often contaminated due to leakages or geological conditions or insufficient purification. Water extracted by hand pumps in rural areas is mostly brackish. The Pakistan Council of Research on Water Resources estimates that about 50 percent of urban water supply is unfit for drinking. In rural areas, the situation is worse.

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Product life cycle

This product is at the stage of growth of product life cycle, because the cover mass market customer, now bottle water use every where in Pakistan. Competition is also growing, nowadays many competitors in market, kinley, aquafina, sufi and many other. Sale of nestle is also has rapid growth, as we discuss now bottle water market growth rate is 40%. Profit is very strong because nestle pure life is market leader. A mass market exists for Nestle Pure Life with regards to the customer. It is currently number one selling mineral water in Pakistan. The competition has been increasing since the product was introduced in 1998, and is still on a rise. Sales and thus the profits, both are increasing. This is mainly due to various promotion methods that the organized has used especially the activities carried out in the sales promotion category and the word-of-mouth proved to be extremely effective in increasing the market share of the product. The overall strategy used for marketing the brand was market penetration. The aim was to penetrate the mass market immediately, and thus generate substantial sales volume and a large market share. Also, in this stage, the costs of the product are declining because of mass production. Today, Nestle is number one selling bottledwater in Pakistan. Referring to the pricing strategy, the prices of this product have increased since it was introduced.

Sales pattern
Nestle pure life sell water and water demand is low in winter season therefore nestle pure life demand also seem low. Due to this reason this product is seasonal, and this seasonal factor make this sale cyclical

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Competitors Analysis
Sufi, 7%

other, 7%

There is three main competitor in market of nestle water, and these are following. Aquafina Kinley Sufi Other

Kinley, 16 % Aquafina, 22%

Nestle, 4 8%

Strength & competitor Strengths

weakness

of

the lifestyle of the people is changing DEMAND is increasing day by day in the bottle Water Aquafina has strength its a product of PAPSI cola Kinley has strength its a product of coca cola, world most strong brand Sufi is Pakistans own brand.

Weaknesses
the lack of awareness and the poverty the lack of availability in the remote areas is also the strong reason Sufi weakness is its a local brand as compare other, it has not brand equity as much as other competitor have Sufi had not experience related experience in this field, like PEPSI and coca cola had made beverages

Basis if competition
There is no competition about price, because nestle charge premium price from there customer. But price can be on other factors like quality like nestle says (good tasted water) and kinley said (clean water for drinking), we also said this competition can on perceived differentiation. This competition also be on service base like delivery at home or office.

Vulnerability
Other competitor vulnerable at the point of taste and nestle pure life got that competitive edge. Nestle pure life sell their product with positioning of good taste water. And that competition nestle also vulnerable due to high price as compare nestle pure life other brand offer cheap prices.

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SWOT ANALYSIS OF NESTLE

As part of a situation analysis, performing a SWOT assessment is necessary as it highlights a firms strengths, weaknesses, opportunities and threats. To fulfill its mission, Nestle should capitalize on its key strengths, overcome or alleviate its major weaknesses, avoid significant threats, and take advantage of the most promising opportunities.

Strengths: Nestle over the years has proved itself as the experts in food industry. They provide quality products at reasonable prices. They have a healthy quality image, which has enhanced them further in the market of food products. In Pakistan, their position has further strengthened; firstly because there is are existing markets for almost all of their business units. Secondly, their merger with AVA which is oldest player in this market. This merger has contributed to Nestls strengths. They provide innovative products which add to their profits. Nestle has a very strong distribution channel. The greatest strength of nestle is probably its diversified and a large number of business units. Even if one SBU fails or is liquidated, the company will not face a financial crisis or go bankrupt. Nestle is market leader this is also its strength. Nestle biggest strength is its has a very broad range just water category Nestle is very much careful about their products quality, thus there water quality is good. They are one of the biggest companies of the world so they have solid financial position and they can compete with any big competitor. 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.

Weaknesses: One weakness that can be pointed out is that there are too many distribution channels for certain products. For example, Nestle Pure life is available at every driver hotel and local khokhas. Nestle Pure Life Is much costly to their competitor.

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Opportunities: Nestle can introduce new product lines in their existing product mix. Nestle can introduce their other brand of water. Until no other brand introduce flavoured in Pakistan, this opportunity of nestle. Water Is An Essential Part Of Life And Everyone Prefers To Drink Safe And Healthy Water. Nestle Is A Trusted Brand For Providing Good Quality Products. 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 Govt. is taking steps to boosting the purchasing power of the public, the more the purchasing power more will be the buyers Karachi, which is the biggest city of Pakistan and the biggest consumer of pure water because the water quality of that area is not good 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 People of the Pakistan is consumption oriented Nestle produces almost all the dairy products except for ice cream. Ice cream has a major market in Pakistan, therefore, it can be a successful brand.

Threats:Changes in major economic environment variables such as income, cost of living, and interest rates, saving and borrowing patterns have a large impact on the demand for the products. Tough Competition from Aquafina and Kinley. Nestle market share continuously decreasing. In 2001 its market share 65%, which is now 48%. There is no market barrier to new entrant. And that business has not to fixed cost. Nowadays government department, WASA is also taking precautionary measures to provide safe and healthy drinking water to every home and they are also installing filtered plants to every locality to easily access by everyone, so by that this would be to a big threat for Nestle drinking water in up coming days.

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Consumer behavior
o o o o o o o o o o At an average , a Pakistani consumer spends 42 % of income on food. Retail sales of processed foods are expanding by 10 percent per year. Consumer often prefer branded food items for both quality and status reasons Demand for packager food is growing Key factors are: Changing lifestyle Influence of foreign media Increase awareness of health principles Advertising is also helping to stimulate demand for branded food items. Per capita real GDP has increased at an average of 5.6 % per annum during the last three years o This increase has led to a rise in average income of people and a increase in consumer spending o Targeted segment- youth and elders- is health conscious and thus adds to the demand Usage of and purchase decision o This product use in many demographic market because and that product use is FMCG according to location usage, if that use in traveling then traveler purchase it and traveler can b any body. Any elder person, a youngster, or any other. If that use in office 19ltr bottle use frequently use in on meal(house) and office. And their decision maker can be house hold women, or man, and in office that can be inventory manager or office head.

Sales

office use 35%

on meal 25%

trevaling 40%

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SEGMENTATION
Income level High and upper middle Consumption pattern Frequent, occasionally, Growth of particular segment itself Geographic location Nestle water distribute all over Pakistan. Age group Water is very essential for every age group

TARGETING:
Nestle is targeting mainly on those city in which density of population is high such as Lahore, Karachi, Faisalabad, Sialkot, Gujranwala, gujrat etc. thats way in those city nestle also have their regional offices. Nestle is also focusing on educated class because they know the values of health in life. The economic condition of general public is quite against the price of the product, so thats why they are focusing on middle higher group and higher class. Nestle is also capturing all big and small organization as they like to use quality water for their employees. So on the basis of targeting they are using differentiated strategy. As our target market is not the lower class and lower middle class so Nestle water should be provided in that place where its demand is high i.e. in big cities and in good areas. Water should be provided where there is a need of your water ,like in Karachi tap water quality is not good so people need pure water.

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. Nestle pure life position their product on the basis of good taste. They said good taste drinking water (Pine ka khush zaika pani).

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DIFFERENTIATION:

As water does not have any taste, smell or colour so its not possible to differentiate it on any tangible benefits so its purely differentiated on perception. But we differentiate it by its packing and our services.

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.

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Brand Elements & Structure

A brand is a name and/or mark intended to identify the product of one seller or group of sellers and differentiate the product from competing products. Branding reduces the price competition. Nestl is using following branding strategies: The company name combined with a product name: A Nestl 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. Nestle pure life donning umbrella branding. Therefore nestle pure life doing umbrella branding. Thats way it memorable because its very well known brand of world. Pure life is also transformable to other brand. Its also adoptable and protectable because these both name logo theme are registered. And this name also meaningful. Its give a meaning of healthy life. This is very suggestive Complete brand structure gives very light image, blue coloure deliver cool image, and characters of three family member make a very healthy image Brand element Name, logo

symbol

colour theme

character

Sky blue and, white are merging in each other, and dark blue A hydration family

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PRODUCT:

A product is anything that can be offered to a market for attention, acquisition, use or consumption and that might satisfy a want or need; it includes objects, services, persons, places, organizations and ideas. We can also say that product stands for goods and services combination the company offers to target market. Nestle Pure Water:

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

Nestle water falls under the convenience goods because it is low priced and widely available.

PRODUCT ATTRIBUTES:

Developing a product involves defining the benefits that the product will offer. These benefits are communicated and delivered by product attributes such as: 1. 2. 3. Product quality Product features Product design

Decisions about these product attributes greatly affect consumer reaction to Nestle product.

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PRODUCT QUALITY
Nestle sell water for health concise people, thats way nestle pure life full fill all these factor which is important for who want health. Product quality means the ability of a product to perform its functions. Nestle water is reliable its always health concise. Nestle has chosen the quality level that matches target market needs and wants. Nestle provide water with specific minerals. Nestle sell product with brand name. Beside quality level, Nestle consistently delivers the desired level of quality to consumers. Always strives for high level of quality consistency.

PRODUCT FEATURES:

Features are a competitive tool for differentiating the company's product from competitor's products. Following are the features on which Nestle has competitive advantage. Nestle provide clean water, with good taste. Quality Availability Convenient prices Familiarity

Pricing Strategy
nestle offer value pricing thats way price of nestle higher then its competitor. Nestle charge price for that value which they sell. Nestle said water for drinking with good taste (peene ka ka khush ziaka pani). Nestle pure life available in many different sizes in market with different prices. The water is available in the following sizes, 30ml/ bottle 0.5ml/ bottle 1.5 ml/ bottle 12 litter/ bottle 19 litter/ bottle 11Rs 13Rs 24Rs 350Rs

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Distribution Strategy
What are the current distribution channels?

nestle pure life

differnt many agencies

retailer

free home delivery for 12ltr and 19ltr

Nestle pure life distribute their product exclusively selectively and extensive in any manner. Nestle pure life have account handling for their loyal customer. Nestle have accounts have hotels, restaurants, homes and offices. Nestle have exclusively distribution for 12 and 19 litter bottles. And reaming other sizes 330ml, 500ml, 1.5ltr, 12ltr and 19ltr bottle have selectively and extensive distribution. Quality distribution of is very good their sale person have proper training, they use 11step of sale

Communication Strategy
Promotion of Nestle Pure Life water: In regards to advertisements, the basic idea was to leverage a key visual: small figures evoking a happy family. These figures were embossed on the bottle itself and on the label. The advertising message was later developed: Nestle Pure Life. The ideal water - From Nestle with love. The campaign involved three visual elements: newspaper advertising, posters and television commercials. To ensure a coherent approach, every application of the product's visual elements was described in detail be it a banner, a delivery van, a display, or a mobile. Through various forms of advertisements, the message of a pure, safe, and a healthy product is promoted. Advertising is any paid form of non personal presentation and promotion of ideas, goals or services by an identified sponsor. Nestle strategy is to annually plan for advertising. As it allocates budget and hires advertising agency.

Objective of Advertising :
Advertising objective is a specific communication task to be accomplished with a specific target audience during a specific period of time. Nestle produces diverse products. For each product the objective is different according to market share, demand, and quality of product. Pure water advertising has following two objectives.

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Reminder Advertising :
Nestle set its objective of advertisement to remind its pure water and recognize its name during the whole year. Nestle maintains higher level of mind awareness among the consumers during the whole year and to remind the consumer the name of company in the market during the consumption season; from April to September season.

Persuasive Advertising :
To face the stiff competition Nestls advertisement campaign always gives support to the pure water giving perception of the product. It claims that the quality of pure water is best. It is pure, fresh, and good in taste and smell.

Advertising Strategies:
Advertising strategy has two elements creating advertising messages and selecting advertising media.

ADVERTISING MEDIA
Advertising media is selected on the basis of cost of advertising media. That media is preferred which is least costing for the company and reach the consumer market very well. Profile of major media types selected by Nestle is given as: Television: Television is selected on the basis that is most appealing to the human senses but Nestle gives ads on television only before the most consumption season. PTV is the channel that is selected on the basis of its popularity among the masses. As for television advertising is concerned the purpose in only to remind and give awareness to the consumer. The recent advertising campaign in run on PTV, Tenports, Geo, ARY etc during prime time because at that time the target market is more likely to watch television. Newspapers: Newspapers are selected on the regional basis. All newspapers that give ads of Nestle. Magazines: Magazines are selected on the basis of demographic factors, long life good pass along readership. Among magazines She, Herald, Teenager and all college magazines and digests; printed locally, give Nestle ads.

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Nestle pure life Brand Inventory Billboard

Nestle has also adopted billboard media, these are selected due to low cost high repeat exposure and flexibility. This year Nestle has displayed billboard about on every road and remind the consumer that Nestle has taken a further step in improvement of quality.

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 travelling 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 :
Nestle 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 6bottle 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. Product sampling and sticker sampling activities were carried out in Murree in summer of 1999. Nestle marketing team has also undertaken a major education campaign on water use and its importance in daily life. Mothers of school children were sent an invitation to attend a Water Show demonstrating the benefits of safe water and were asked to fill out a questionnaire. The questionnaire refined the team's knowledge of consumer perceptions. At the end of the show, visitors received a promotional kit offering a chance to sample Nestle Pure Life and opportunity to enter a photo contest on the theme Nestle Pure Life and You. The contest offered 10,000 rupees in prize money. This helped boost the brand's image in the minds of consumers. Another contest took place in October 2000 by the name of Cricket Hangama. This contest provided a chance to win a thousand of tickets, signature posters, VIP Tickets, and a chance to dine with the cricket stars. Besides this, Nestle Pure Life also sponsored the following events: a high profile, national level hockey match played at Ayub Stadium, Quetta on April 18,2000; and a cycle race on March 9, 2000 in collaboration with the Baluchistan Cycle Association.

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Public Relations
As far as the public relations is concerned, The organization releases an annual report which includes the company's financial statements along with the sales of all product categories. The annual report is mainly aimed at the stockholders. However, another very important form of public relations are the newsletters and bi-monthly magazines issued by the organization. A huge amount of information is found in these regarding the products and their promotion. In the same way, Nestle Pure Life was given quit a bit of importance in the newsletters issued after its launch, which obviously helped in creation of the awareness of this brand.

Contact:
These channels find and communicate with prospect buyers. They each the prospect buyers easily than its competitors and overcome their shares as well.

Matching:
Nestle shape and fit the offers to the buyers needs including such activities as manufacturing grading, assembling and packaging.

Negotiation
They negotiate with retailers to reach an agreement on price and other terms of offer so that ownership and possession can be transferred. Nestle specially negotiate with retailers in low selling season and offer certain price offers to attract the product. Besides these promotional methods, word of mouth, a major factor in Pakistan proved to be very effective in the increasing sales of Nestle Pure Life.

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References
1. http://www.amcy5.com/Reports/marketing/amcy5.htm 2. Share 3. Economy survey of Pakistan 2009 4. http://www.dailytimes.com.pk/default.asp?page=story_23-8-2005_pg3_5 5. Market of water 6. http://www.finance.gov.pk/survey/chapter_10/05_Monetary.pdf 7. Market size 8. http://www.scribd.com/doc/12845067/Aqua-Fina 9. Marketshare 10. www.Blogspot.com 11. www.scribd.com 12. www.nestle-water.com 13. www.google.com 14. www.yahooanswer.com 15. M. Bin Shehbaz 16. Syed Mohammad Ali

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