Federal Urdu University of Arts, Science and Technology Islamabad

Marketing Project
Group Members:

Asfandyar Fida
Muhammad Rizwan
Muzamil Hussain
Ather Riaz

Submitted To:

Mr. Imran Mir

Dated:

09 June, 2015

Federal Urdu University of Arts, Science and Technology Islamabad

Introduction:
This is a semester project regarding a company we have decided to select Nestle as a company
for our project. Nestle has been serving this world for over one hundred and thirty years. It has
differentiated itself through its high quality product mix and positioned itself as health and
Nutrition Company while targeting the health conscious people throughout the world Henrie
Nestle established Nestle in 1867 in Switzerland. Nestle is worlds N0 1 food company. 3 Lac 39
thousands people employed all over the world. Operation in more than 197 countries Over 700
products renovated or innovated in the past five years.

Federal Urdu University of Arts, Science and Technology Islamabad

I.

Situation Analysis:

a. External Environment:
i.

Political:
Nestle is a global company and leading in nutartion, food beverage
industry.Companies polices are afftected
if there is unstable poltical
environment . Nestle has full support of governments to manufacture healthier
diets for target market and they have made significant changes in products
according to the customers needs

ii.
iii.
iv.

Economic:
According to latest report Nestle has organic growth of 4.4% in 2015. In 2014
sales are 91.6 Billon dollars and profit generate by company is 14 billon dollars.
Social:
Nestle was founded on social responsibilty. Nestle manufacture products which
are legal and healthier for people in this way target market become satisfied
International:
Nestle company improves their operation by expanding their business on a
international scale, Nestle company performing operations in more than 197
counties.

b. Corporate Review:
I.
Misson:
Good Food, Good Life." The company aims to provide consumers with tasty, healthy
food and drinks for every meal and snack.

Vison:
Their vision is to be the leading Food and Beverage Company in all over the world
providing our customers with high quality products and service at competitive prices in
this way our company will be able to achieve its goal and objectives

Strategic Intet:

II.

Nestle is world leading in nutration, food and beverage industry.In past years they
deliverd best quality products to their cutomersGood Food Good life indicates
company corporate plan that company proimise to deliver best quality products which are
healthier for life. The company is able to create value among consumers by introducing
new products continously with also reenginering business process
Corporate Plan:
Nestles target health concious people as their target market than they provide best
quality, tasty, healthier food and cold drinks to their coustomers . Company has used
reenginering as a businees plan to achieve goals. It means thay can rethink and redesign
their products according to consumers needs. Marketing plan of nestle consist of to

Federal Urdu University of Arts, Science and Technology Islamabad

manufacture best quality products in afforadable price for typicall market they use best
prmotion sources to intarct with customers.

Long term Goals:

III.

IV.

Reducing direct water withdrawal per tonne of product by 40% compared to 2005, by
2015
Reducing direct greenhouse gas emissions per tonne of product by 35% compared to
2005, by 2015.
Providing healthy and tasty foods to their customers.
Company want to reamain worlds leading in food & beverage industry.

Objectives:
Nestl's corporate objective is to be the world's largest and best branded food and
beverage manufacturer with best quality products.
To build trust and strong business realtionship with consumers, governmental
authorities and business partners.
Introduce new products and teacnologies
Monitor perforamce and results and make changes to achieve required goals.

V.

Organizational Chart:
CHAIRMAN
P.Barbeck-letmathe
CEO
P.Bulcke

Corporate governance

D.P FRICK

Finance & control

Operations
J.Lopez

Corporate communications
Pharma

R.Ramsauer

SBUs marketing &sales Innovation technology & R&

J.Singh

W.Bauer
Nestle waters

Nestle nutrition
R.T.Laube

Zone EUR: EUROPE

L.Freixe

& cosmetics HR
F.Castaner

J.J.Harris

Zone AOA: ASIA/AFRICA

F.Van Dijk

c. Product Category Review:

Federal Urdu University of Arts, Science and Technology Islamabad

W.Bauer

Nestle Professional
M.Caira
Zone AMS: Americas
L.Cantarell

General Discription:

I.

Nestle is worlds largest nutrtion, food and beverage industry. Nestles manufacture
products which are healthier and deliver best quality products to their customers. They do
not use any harmful ingredients. So their products are for all people, ages and cultures.

Sales Trends:

II.

Nestles is world leading in nutration, food and beverage industry. People in now a days
more concious about their diets and health. Nestles introduce best quality brands which
are healthier and tasty.Major shares of brands according to organic growth are:
Nescafe 11%, Milo 13%, Nestle pure water 11% , Nido 11% & Maggi 10%

Distribution:

III.

Nestle has its own distribution network with all transporation facilities. They transport
their products to regional sales offices which are situated all over the world. The
distribution process consist of following steps:
Raw material, manufacturer, processing, product, packaging, , transporation, distributor,
retailer, customers.

IV.

Pricing:
Price depend upon the market of product. Nestle Company charge fair prices according
to the product quality, competition in the market and they made product according to the
buying power of the customers e.g Nestle Milk Pack 110 RS Per kg in Pakistan.

V.

Packaging:
Nestles used best material for packaging of product in order to prevent food waste and
avoide to damage environment , company also avoided the wastage of packaging
material. Nestles design packaging in such a way that it attract customers to buy the
product.

d. Competative Analysis:
I.
Descriptions of major competitors strength and weakness:
Major comprtitor of Nestle company are Engro foods, Walmart, Unilever, Habib, ,
keuring, Unilever NV, Hershey Foods, Kraft Foods, Cadbury Schweppes, GROUPE
DANONE and many other companies etc These companies manufacture same products
like nestle and used best distribution sources , make changes in price of products to
challenge nestle in the market.

II.

Brand Postioning and advertising:

1. Media Spending: In 2011, Nestl spent more than 2.9 billion U.S. dollars on
advertising, in 2013, Nestle spent 3.12 billon U.S dollars on advertisng worlwide.

II.

Sales Promtion:
It was one of the best advertsing compigon used by companies to attract customers. Nestle
done the promotion of the products very smartly. Nestle try to poistioning that their

Federal Urdu University of Arts, Science and Technology Islamabad

products are for all ages and healthier for every one in this way they will attract large market.
Now, Nestles is world leading nutration, food and beverage industry.

e. Consumer Analysis:
I.

Demographical Factors:
If we look on Nestles company demogrphic segemenation then we will find that their
some products are for every one , people from any area, culture ,age, and any beliefs etc
and some products are for special target market e.g Children foods like Ceralic for only
childrens etc

II.

Brand Loyalty:
According to latest research Nestles company ranked NO.5 most loved company all over
the world. It is due to the consumers brand loyalty.
It's the world's leading nutrition, health and wellness company. The mission of "Good
Food, Good Life" is to provide consumers with the best tasting, most nutritious choices in
a wide range of food and beverage categories and eating occasions, from morning to
night.They are providing best quality products to their customers. In this way customers
become loyal they do not purchase competing products available in market.

III.

Purchase Rate:
Nestles company manufacture products which are healtheir and tasty. In this way they
attract health concious people after delivering best quality products their customer
become brand loyal. They purchase Nestles company products ang givingperference
Nestles products among competitors products . Purchase share of some Nestles product
according to annual 2014 report:
Powdered and Liquid products 20.3 % Milk and ice cream products 16.7% . Prepared
dishes 13.5% Nutrition products 13.1% Petcare 11.3% Water 6.9% & confectionery
&chocolate 9.8%.

II .

SWOT Analysis:

Strengths:
Federal Urdu University of Arts, Science and Technology Islamabad

Companys name Nestle specifies the quality image high standard and quality product

Loyalty from customers is also the major strength for the company

Employees are also loyal due to the decentralized culture of the company

People trust on products due to proper health and safety measures

The strength of Nestle confectionary is its imported chocolates and candies, which
strengthens its image

Being a multinational company it has the capability to attract more customers than the
local companies

Company has the ability to compete in a dynamic environment

Company always adapt the new technology and deliver best quality products to
customers.

Weaknesses:
There is not much margins for retailers to prefer its sales.

They need to improve the facilities of transporation of products and promotion of the
product

The distribution cost is high as compared to the competition in the local market.
Opportunities:

They have an opportunity to expand or capture the market by adding its product line.

They have the opportunity to offer snacks & enter in ice cream industry.

They can also capture the market of home appliances.

Company can open separate stores to eliminate retailers.

Recently, they have created an opportunity for themselves by introducing chillers in the
market.

Company is trying to open stores in universities.

They can provide incentives to retailers to increase sales volume.

Federal Urdu University of Arts, Science and Technology Islamabad

Threats:

III.

cost. Existing companies are increasing their product lines that can prove to be a threat in
the coming years.

Company like Cadbury is giving more discounts to retailers as compared to distributors

due to which retailers prefer its products for sale.

As compared to the local competitors, Nestles distributor cost is very high. As Nestl
Products has to maintain and obey the Nestl standards.

Some companies are competing on the basis of cost.

Strategic Planning:
a. Marketing Objectives:
Nestle business objective is to manufacture and market its products in a way that creates
value that can be sustained over the long term for shareholders, employees,consumers,
business partners and national economies in which Nestl operates.The aim of the
creating values for the company include with improve business conditionfor the firm. To
obtain more reliable and high qualify source of raw materials, improved government
functioning and regulatory, employed skill and loyal workforce and superior quality
products which successfully complete.
b. Marketing Strategies:
Nestles define mrketing as: A social and managerial process where by individual &
groups obtain good food and good lifethrough creating and exchanging products and
values. For this purpose thay used marketing stsrtegy to bulid strong realtionship with
customers. Their marketing staretgy is to attract new customers by providing superior
products in affordable price to satisfy them. There all products are healthy for life and for
society welfare. So according to their mission and vision they are following Societal
Marketing Concept.
c. Targeting and segmenting:
Target Market: Nestles products are not for all. Some products are for different target
market and other are for different e.g baby foodies, for babies and Milk pack for
teenagers and elders depending upon people income, life style, purchasing power etc.
they will be targeting only those segments that can provide best possible returns so in this
way they may be able to achieve their goals effectively and efficiently.

Federal Urdu University of Arts, Science and Technology Islamabad

Market Segmentation:
Nestle has divided its market into geographic (Location and area) , demographic ( Age,
below 18, above 30, 18-30 and gender), psychographic (Upper class, lower class and
middle class according to their income level) and behavioral segments. These segments
will help to understand the market better and in implementation of marketing strategies.
d. Competitive Advantages:
Leading in food and beverage industry
Best quality products to capture large health concious market
The research and development capabilities allow the Company to lead the way in
innovation among its competitors
e. Positioning and Branding:
As Nestle has salgon Good Food Good Life they have trying to positioing that their
products are for everyone and healtheir for health. They do not use chemicals and harm
ful ingredients which are also harmful for human beings as well as environment. Nestles
company used best promotion sources to poistioning that their brands are legal and
healthier for everyone. In this way they attract health concious large marke

1V. Marketing Mix:

Product:
Product stands for goods and services that the company offers to target market. Nestle
manufacture products which are used every day. Nestle has large number of products
some of the brands are following:
Baby Foods, Breakfast Cereals, Beverages, Bottled Water,
Chocolate & Confectionery, Dairy Products, Food Services, Ice Cream, Prepared Foods,
Petcare & Cosmetics
Names of some products are: Cerelac, cookie crisp, Nestle fruit juices, Coffee Nescafe,
Milo. Nido, Nestle Pure Life Bottled water, Crunch, Kit Kat, Nestle Milk Pack, Friskies,
Maggi, Dog Chow, L Oreal etc
Price:
The price is dependent on the market of each individual products. Nestle sets prices of
their products according to the market demand as low as possible to achieve its goal and
provide services to everyone. Nestle has no effect on prices by their competitors because
they set their own.They charge offardable prices to their customers. List of prices of some
Nestle products in Pakistan:
Cerelac baby food RS 125, 200 grms and different varities have different prices, Nestle
Milk Pack RS. 110 per kg, Maggi Chicken RS.24 , Nestle Nesfruta RS. 100 Per 1000
ml, KitKat Chunky RS 2350 Per 50 grms pack, Nestle water 18.9 liter bottle RS .230 etc
Promotion:
Federal Urdu University of Arts, Science and Technology Islamabad

Nestle has adopted the channels for promotion through TV, News papers, magazines,
Doctors,and hoardings, personal selling and direct marketing etc For this purpose nestle
issues ads about their products to tv channels to intract with customers and similarly to
the newspapers, they also used hoardings on markets or roads to communicate with
customers. Nestle also used dirct marketing for products, consumers will register to
online ordor than they will provide products and services with in 24-48 hours. Nestles
company also uses person selling, selling through person to person communications
process. For this purpose company sent their good observers in the market to intarct with
the people, tell them about products, face to face communication will help the company
to attract large marke.
Placement:
Nestls distribute their products on world wide scale. They are operating or saling their
products in more than 197 countries, in these countries thay sale all over regardless big
and small cities. For this purpose Nestle has its own transpoaratin system, they
manufacture the products in factories and transfer products in regional offices or sales
center then provide products to distributors and retilors.

IV.

Controling and Evaluation:

a. Forcasting:
Forecasting is used by companies to determine how to allocate their budgets for
an upcoming period of time. Nestle, the world's largest packaged foods maker,
forecast sales to rise 5 percent this year, in line with its long-term goals, following
a weaker year in 2014 that was hurt by deflation in Europe and slowing demand
in Asia.
b. Budgeting:
According to annual Nestles company report in 2014, thay are operating in 197
countries having having 3, 39, 000 employees. Nestles company had sales of 91.6
billon dollars and 14.0 billon profit.
Total sales in europe 25.9%. Americans 39.4% and Asia & Africia 26.3%. tjey
also used heavy amount on advertisment.In 2011, Nestles company spent 2.9
billon dollars on media for advertisment purpose.

c. Evaluation:
Nestle is world leading in nutration, food and beverage industry.In past years they
deliverd best quality products to their cutomers.Nestl Company is an
international company which came to the stage it is today by gaining superior
competitive advantage over its rivals. The focus product differentiation strategy
has been very successful although it may not work for other firms. The company
is able to create and deliver value not only by offering distinguished products but
also gaining effectiveness and efficiency by reengineering its business. .We are
sure that Nestl Company will do better in the future than their competitors and
might be the new trendsetter in some criteria and also gain its above-average
returns to their company.

Federal Urdu University of Arts, Science and Technology Islamabad