Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
NESTLE CERELAC
Yumna Iftikhar, Muniza Hashmi, Sumaira faiz, Mustafa Javaid, Marzia Sakhi
BS(BA)-4th-B
Balochistan University of Information Technology,
Engineering and Management Sciences
Cerelac is a best start of one's life and off course future too
TABLE OF CONTENTS
21. Bibliography..26
ACKNOWLEDGEMENT
Praise is to ALLAH Almighty, the one testing us all at all times and making decisions about
what we dont know and cant know. All thanks to him who gave us courage to undertake and
complete this project.
Any accomplishment requires the effort of many people and there are no exceptions. The report
being submitted today is a result of collective effort. There are innumerous helping
hands behind who have guided us on our way.
Writing this report appeared to be a great experience to us. It added a lot to our knowledge.
This report is one of our memorable experiences in student life. Though words are inadequate in
offering thanks to our teacher but we owe profound gratitude to
MR. Mateeh Ullah Khan
For stimulating our creative abilities by assigning this project to us and for his able guidance and
useful suggestions, which helped us in completing the project work, in time.
Whatever we have learnt from him and this project report has put indelible impression on our
minds.
It is our conviction that this learning experience will always be a source of help in our practical
life and professional career.
Finally, yet importantly, we would like to express our heartfelt thanks to our beloved parents, for
cooperation, help, kindness and blessings, our friends for their help and wishes for the successful
completion of the work.
EXECUTIVE SUMMARY
This is a semester project regarding a baby food product name Nestl Cerelac. It starts with an
introduction about Nestl Company. It gives a briefing about all the brands of the Nestl
Company.
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 Cerelac for our project report. Their aim is to provide
customer with best infant food on suitable prices make the product as convenient as possible.
According to their claim that they provide the best food through out the world.
Here we are analyzing the marketing plan of Nestl which is an FMCG; we have made a
project report on Nestl Cerelac. We will be seeing different strategies of the company. We will
see the various strategies that can be used by them for improving their product. Our report
includes a brief description of the company vision and mission statement its marketing
objectives, description of the product, situation analysis, industry analysis, Consumption, trends,
profitability and future growth potential, SWOT analysis, Competition.
This report also includes the marketing mix of the product has been discussed to reveal the
significance of its product, pricing, promotion and placement.
Segmentation and targeting will help to understand the criteria of Nestl marketing for the
specific product.
In the end there has been explained CRM of Nestl after that report has been concluded.
development.
Nestl CERELAC is ideal as it is a nutritionally complete meal for every occasion and superior
to porridges, maize meal and jars. Moms can feed CERELAC to babies at any time of the day
because it is a baby food, not a breakfast cereal.
CERELAC compliments the milk feeds perfectly as it has the nutritional value of a fully
balanced meal for baby, and tastes great too! By feeding your baby CERELAC you can be
assured that your baby gets all the energy, protein, vitamins and minerals needed for optimum
growth development - just add water!
COMPANY PROFILE
Description of Nestle:
Nestl began in Switzerland in the mid 1860s when founder Henri Nestl created one of the first
baby formulas. Henri realized the need for a healthy and economical product to serve as an
alternative for milk. Henris product was a carefully formulated mixture of cows milk, flour and
sugar. Nestls first product was called Farine Lacte (cornflour gruel in French) Henri Nestl.
The start of World War I made it difficult for Nestl to buy raw ingredients and distribute
products. Fresh milk was scarce in Europe, and factories had to sell milk for the public need
instead of using it as an ingredient in foods. Nestl purchased several factories in the U.S. to
keep up with the increasing demand for condensed milk and dairy products via government
contracts. The companys production doubled by the end of the war. When fresh milk became
available again after the war, Nestl suffered and slipped into debt. The price of ingredients
was increasing, the economy has slowed and exchange rates deteriorated because of the war.
In 1874, The Anglo-Swiss Condensed Milk Company, founded by Americans Charles and
George Page, merged with Nestl after a couple of decades as fierce competitors to form the
Nestl and Anglo-Swiss Milk Company.
Expanding its product line outside of the food market, Nestl became a major stockholder in
LOreal cosmetics in 1974. Many organized groups began boycotting all of Nestls products
because they disapproved of Nestl marketing its baby formula in developing countries.
Problems like illiteracy and poverty caused some mothers to use less formula than
recommended. In a watered down formula, vital nutrients are lessoned. Contaminated water
presented another problem, since the formulas had to be mixed with water. The organizations
argued that the misuse of formula resulted in the malnutrition or death of many infants in
developing countries.
According to Nestl the World Health Organization never made statements tying infant death or
malnutrition with baby formulas. The company didnt deny the superiority and agreed that
substituting milk for other substances could be very dangerous. Nestl explained that
breastfeeding and non-breastfeeding mothers in developing countries often gave their babies
whole cows milk, tea, cornstarch, rice water or a mix of flour and water. These alternatives were
very unhealthy and a nutritional baby formula was a better choice. Nestl says that it has never
discouraged breastfeeding when it was possible. Nestl agreed to follow the International Code
in developing countries in 1984, and the boycott was suspended. It resumed several years later
when the organizations believed Nestl was sending free or low cost baby formulas to
developing countries. Nestl said it only sent formula to countries that allow donations for
orphans, multiple births, and babies with no access to milk. The company has stopped all public
advertising for formula in developing countries for almost 20 years. The boycott continues to
some extent to this day without satisfactory resolution.
The company focused on improving its financial situation and continuing to expand. The leading
in the food industry, Nestl brings in $81 billion in overall sales and has 470 factories around the
world. Nestl will continue to grow, introduce new products and renovate existing ones. The
companys mission is to focus on long-term potential over short-term performance.
Nestl expands across many different markets including beverages, ice cream, baby
foods/formulas, soups, frozen foods, snacks, pet care and of course candy.
In line with Nestls global philosophy, Nestl Pakistan is proud of its commitment to excellence
in product safety and quality and to providing value and aims to be the leading Nutrition, Health
and Wellness Company. As a socially responsible corporate, we always focus on environment
friendly operations, ethical business practices and our responsibility towards the communities.
Africa
America
Asia
Europe
Oceania
Vision:
Nestls global vision is to be the recognized leading Nutrition, Health and Wellness Company.
Nestl Pakistan subscribes fully to this vision of being the number one Nutrition, Health, and
Wellness Company in Pakistan. In particular, we envision to;
Lead a dynamic, passionate and professional workforce proud of our heritage and
positive about the future.
Meet the nutrition needs of consumers of all ages from infancy to old age, from
nutrition to pleasure, through an innovative portfolio of branded food and beverage
products of the highest quality.
Deliver shareholder value through profitable long-term growth, while continuing to play
a significant and responsible role in the social, economic, and environmental sectors of
Pakistan.
Mission:
To positively enhance the quality of life of the people of world by all that we do through our
people, our brands and products and our CSV activities.
Ambition:
To be the leading Nutrition, Health and Wellness Company.
Marketing Objectives:
10
Marketing objectives are compatible with the overall corporate objectives of nestle.
Companys objective is to be the worlds largest and best branded food manufacturer while
insuring that nestle name is synonymous with the products of the highest quality.
Cerelac Rice
Cerelac Wheat
11
Nestl Cerelac:
BL Bifidus together with the combination of iron, zinc, vitamin A & vitamin C nutrients have
been shown to help strengthen your childs natural defenses day by day.
Infant Cereal Rice & Milk
Nestl CERELAC Infant Cereals Stage 1 makes it easier for you to gradually introduce solid
food to your child.
Infant Cereal Brown Rice
The mild tastes of Nestl CERELAC Infant Cereals Stage 1 make for a gentle move from a milkonly diet.
Infant Cereal Rice & Soya
Nestl CERELAC Infant Cereals Stage 1 helps you to ensure that your child has a varied and
nutritious diet.
Infant Cereal Rice & Mixed Fruits
Nestl CERELAC Infant Cereals Stage 2 introduces more new tastes to help develop your little
one's taste buds.
Infant Cereal Rice & Mixed Vegetables
Nestl CERELAC Infant Cereals Stage 2 another step forward in your little one's journey of
nutritional discoveries.
Infant Cereals Wheat & Honey
After 6 months, your child is ready to discover new tastes. His taste buds can differentiate
between foods.
Cerelac Oats, Wheat & Prunes
Between 8-11 months of age, babies need more than just nutritional value in food.
Infant Cereal Rice & Chicken
Nestl CERELAC Infant Cereals Stage 3 has richer tastes and textures to suit your child's
chewing and swallowing abilities.
12
SITUATIONAL ANALYSIS
Industry Analysis:
Consumption:
The Nestl Cerelac consumers are spread all over the world one of the reasons behind is
the lower prices offered by Nestl and its easy availability every where. Nestl Cerelac is
that much available that people hardly find any other Cerelac in market with an ease.
The consumers are the infants of course but the customers are the parents and they select
the best quality material for their children and thats Nestl Cerelac.
Trends:
13
Nestl will apply insights into changing lifestyles by providing innovative ideas that
appeal consumers.
Every market is different, but Nestl Professional has identified seven global trends:
Evolving role
With more women working outside of the home, demand for convenient, on-the-go
family food is rising.
Risk society
In an uncertain world, people are turning to brands they can trust. And theyre becoming
increasingly aware of the corporate behavior of the companies they buy from.
Fluid lives
The nine-to-five, three-square-meals-a-day routine is becoming a thing of the past.
People want to be able to shop, eat and drink on their terms, where and when they feel
like it.
Fusion
Holidays, world media and globalization have made us open to exotic new cuisines and
creative taste combinations.
Pleasure principles
The pressures of modern life mean people find it increasingly easy to justify treating
themselves. That means being able to have their food and drink their way, with the
ingredient options and flavorings of their choice.
Wising up
Well-informed consumers wont come back for a second visit if the first is disappointing.
And legislation and watchdogs are giving them new information about their choices.
Seeking balance
People want balance in their diets and in their lifestyles. Theyll choose healthy options,
but they also like to indulge if the right treat is on offer.
Profitability:
14
Net profit was more than tripled in 2010, as the world's largest food company
successfully navigated the triple pressure in the U.S. and Europe.
In august 2011, Sales also fell 12.9 percent.
Nestle chief executive Paul Bulcke described the business environment as extremely
tough, volatile and competitive, given the economic instability, rising raw material
prices and the strong Swiss currency a strong factor for decline.
Nevertheless, they managed to drive growth not only in emerging markets but also in
developed countries, especially in Europe.
Nestl has been on a drive to grow in these countries by reformulating many products and
finding cheaper packaging in order to make them affordable and accessible for the
poorest consumers.
Future Growth Potential:
Nestle is today the worlds largest food and beverage company with its mission to provide
healthier lifestyle. It has launched many products in Pakistan the majority of which are popular and
among the market leaders. Nestle is installing new plants and importing latest technologies to improve.
Moreover, innovation is one of its greatest strengths so it has a bright future in Pakistan.
SWOT Analysis:
STRENGTHS ------------------TO BUILD ON
WEAKNESESS ----------------------TO COVER ON
OPPORTUNITIES -------------------TO CAPTURE
THREATS ------------------------------TO DEFEND ON
STRENGHTS
WEAKNESESS
15
THREATS
Competition:
Nestle competes with other packaged foods companies as well as store brands from retailers
Nestls major competitors are:
Farex
16
TARGET MARKETING
Bases for Segmentation:
To occupy a clear distinctive and desirable place related to competing baby foods in the minds of
target customers Nestl Cerelac segments its market on following bases:
Geographic Segmentation
Demographic Segmentation
Psychographic Segmentation
Behavioral Segmentation
Geographic Segmentation:
17
Cerelac segments its market geographically on divisional basis. They divide each division
in different zones and every distributer is restricted to sale its products only in his own zone. E.g.
Lahore is divided in to five zones like east, west, south, north and south west.
Demographic Segmentation:
Age:
They have segmented the market from early age infants to 5 years children and have launched
different flavors and kinds of Cerelac according to their requirements. On the other hand Nestl
Cerelac has made this product for infants but has actually targeted the mothers who can either be
very old or young. Mothers are very conscious about their children health and want the best for
them.
Income Level:
People belonging to lower income groups cannot afford to buy readymade baby foods so Nestl
will target that segment whose income puts them in the upper middle and higher income groups.
Social Stratification:
Buyers are divided into different groups based on social class and life style. Many consumers
live a simple life and belong to lower class; they dont spend on buying artificial food for their
children and people belong to middle class or upper class can definitely opt for this.
Psychographic Segmentation:
Class consciousness:
Nestl has also segmented the specific class of mothers who dont want to give breast feed to
their children so Cerelac is the most preferable and best nourishing food for infants as proxy of
chest food.
Level of Education:
Nestl makes promotional strategies keeping in view the customer level of education. If the % of
education is high in a country then through ads people can be made well aware of their product
and can convey their message easily. Promotion and education have a direct relationship.
Behavioral Segmentation:
Benefits:
18
Buyers are classified according to the benefits they seek. Nestl Cerelac has launched
different flavors and types of Cerelac according to benefits that are required by the children of
different stages of early life.
Segment needs:
Good nutrition is essential for the growth and development that occurs during an infants first
year of life. When developing infants are fed the appropriate types and amounts of foods, their
health is promoted. Positive and supportive feeding attitudes and techniques demonstrated by the
caregiver help infants develop healthy attitudes toward foods, themselves, and others.
During the first few years of life, the body grows at a very fast rate. The baby weighing on the
average about 3 kg. At birth doubles its weight by 6 months. The weight touches 9 kg. By 1 year.
Infants and children are very active and they spend a lot of energy. They therefore, need large
amounts of body building and energy-giving foods rich in proteins and calories.
Differentiation strategy:
Our range is highly hygienic and has excellent strength that prevents the food from dust,
moisture and other contaminants, thereby increases shelf life. Further, our range is available in
different finishes and at most affordable rates to the clients.
19
Positioning Strategy:
We are familiar with the name, Cerelac and not only familiar but consumers too. Whenever some
one (parents) thinks about the product in baby food category for their babies, the first and the last
name comes in their mind is Cerelac. Why Nestle Cerelac is so popular and authentic brand, the
reason is Nestle that communicates itself as 'Good food, good life'. Cerelac is a name of quality
and best food for babies and the positioning statement of Cerelac also tells the same as, 'best start
to a healthier future'
Urban, suburban
Age segments
Income
MARKETING MIX
Product:
Sizes
It is available in 3 sizes; 350g and 175 g box packaging and a 25g sachet for customer
convenience.
Shape & Color
The shape and color are very attractive for the customers.
Labeling and packaging
20
21
The labeling and packaging includes Nestl brand and logo. The packaging includes an
expiry date and time along with manufacturing date. Second part of labeling includes the
quantity of product in grams along with ingredients and contents.
Competitive Advantage
It is the only popular and quality baby food in Pakistan. Its unique `stay fresh seal and a long
lasting shelf life gives the brand a formidable competitive advantage. Not only it is easy to make
but also it is completely made considering the digest system and requirement for infants on
different stages of age. The factors that make Cerelac successful is quality and superior
nutritional value.
Price:
Nestle Cerelac
banana
Price $ 2.75
Promotion:
Nestle Cerelac
banana
Price $ 2.75
Nestle Cerelac
wheat
Price $ 2.75
Nestle Cerelac
honey
Price $ 2.75
Nestle Cerelac 3
fruit
Price $ 2.75
Nestle
strawberry &
apple Cerelac
Price $ 2.75
22
Nestle has adopted the channels for promotion through TV, News papers,
magazines Doctors and hoardings etc.
Advertisement budget of the company
Nestle has preplanned to start the financial year but it is kept secret by the company.
Share of promotion
Share of promotion in over all projects varies every year. Usually it is 40% of the product.
Nature of marketing
The product is marketed aggressively in the market.
Placement:
Outlets for Product Located
Nestl Cerelac is available all over in Pakistan regardless of big and small cities.
Direct Sales
It is not sold directly to the customers because of the extensive consumer groups. It is the reason
they sale the product through distributers for easiness of the company.
Warehousing Facilities
Nestl Cerelac has its own warehouses for the storage of products as well as it also has hired
some warehouses.
Transportation Modes
Usually Nestl mode of transportation is road which is also used for Cerelac.
23
24
Solution
Benefits
25
CONCLUSION
Nestle is today the worlds largest food and beverage company with its mission to provide healthier
lifestyle. It has launched many products in baby food line in Pakistan the majority of which are popular and
among the market leaders. Nestle is installing new plants and importing latest technologies to improve.
Moreover, innovation is one of its greatest strengths so it has a bright future in Pakistan.
Nestle must state in writing that it accepts that the international code and the subsequent relevant World Health
Assembly Resolutions are minimum requirements for every country. Nestle must state in writing that it will
make required changes to bring its Baby Food Marketing policy and practice into line with International
Code and Resolutions.
BIBLOGRAPHY
www.nestle.com
wikipedia.org/wiki/Nestl
www.foodanddrinkeurope.com
www.foodnavigator.com
www.Google.com
www.shareinfoline.com
www.Ask.comsharekhan-firststep.com
http://www.nestle-ea.com/en/aboutus/OurMarkets/DRC/Pages
http://www.scribd.com/doc/29582425/Nestle
http://www.docstoc.com/docs/62851114/nestle
http://www.oppapers.com/subjects/nestle-cerelac-page1.html
http://www.oppapers.com/subjects/cerelac-page2.html
26
27
http://www.nestle.com/Brands/Pages/Brands
http://www.scribd.com/doc/36009148/Marketing
http://www.docstoc.com/docs/77088176/Nestle-Training
http://shortcaketales.blogspot.com/2011/02/makan-time.html
http://answers.yahoo.com/question/index
www.liveperson.com
http://www.biltongstmarcus.co.uk/nestle-cerelac-stage-1---banana-3029-p.asp
http://www.biltongstmarcus.co.uk/nestle
http://www.nestlebaby.com/sg/baby_nutrition/products