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4.

1 Marketing Strategy
For each target market, management must design a Marketing strategy, which includes the designing of the marketing mix. The Marketing Mix is the combination of multiple aspects of the following four elements: a product, how it is distributed and promoted, and its price. These four elements are intended to please the target market(s) and, equally important organization marketing objectives. The Company's strategy is guided by several fundamental principles. Nestl's existing products grow through innovation and renovation while maintaining a balance in geographic activities and product lines. Long-term potential is never sacrificed for short-term performance. The Company's priority is to bring the best and most relevant products to people, wherever they are, whatever their needs, throughout their lives. Nestl is committed to the following Business objectives in all countries, taking into account local legislation, cultural and religious practices:

Nestl'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. Nestl does not favor short-term profit at the expense of successful long-term business development. Nestl 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.

Nestl continues to maintain its commitment to follow and respect all applicable local laws in each of its markets. To achieve these objectives the product, price, place and promotion strategies for Nestl Pure Life are as following:

4.2 Product Strategy


Anything offered to a market for attention, acquisition, use, or consumption that might satisfy a need or want.

Product is set of tangible and intangible attributes, including packaging, color, price, manufacturing, prestige, retailing, services, etc. which the buyer may accept as offering want is satisfied. Nestl is offering the products, which comes under the category of fast moving consumer goods (FMCG). Nestl is committed to offering consumers high-quality food products that are safe, tasty and affordable. The Nestl Seal of Guarantee is a symbol of this commitment.
To be successful in marketing, producers must need carefully planned strategies for their products. Now the question is that how Nestl has planned the product strategies for NPL.

4.2.1 Positioning the Product In relation to the attribute


Nestl is positioning its water as pure and safe water, which is essential to good health. They say that Trust Nestl Pure Life and also Nestl pure life is Happiness, Hope and Trust, this is the message which they are giving in their advertising campaign. Nestle also claims that NPL is Pakistans favorite water and currently their slogan is JIYO! kay yehi hay zindagi. On basis of these, it is said that Nestl is positioning in relation to the attribute and quality of the product. Its basic foundation is unchanged from the time of the origins of Company, and reflects the basic ideas of fairness, honesty, and a general concern for people.

4.2.2 Product Line Expansion


Product line expansion is accomplished by increasing the depth (variety of sizes, colors, models) within the product line. Nestl is offering variety of sizes in NPL product line, which are as follows: Retail line: 1.5 liters 0.5 liters 0.2 liters (Recently launched) Home and Office Line: It is also comes under Nestl Bulk category. 3 Gallon 5 Gallon The year 2005 saw the successful completion of yet another year of outstanding business for NESTL PURE LIFE both in retail with 0.5 and 1.5liter bottles with the introduction of a new product i.e. 0.2 liter bottle and direct home and office delivery with 19 liter bottles. The exceptional performance of the brand is the result of expanding national distribution and an increasingly loyal customer bases. The brand has revolutionized the Pakistani market by tapping the real consumer need for pure, safe and healthy water and has successfully dominated a key strategic business in Pakistan. 4.2.3 Product Life Cycle

Product life cycle consists of the aggregate demand over an extended period of time for all brands comprising a generic product category. Product life cycle is divided in four stages. Introduction: During introduction stage, sometimes called the pioneering stage, a product is launched into the market in a full-scale marketing program. Growth: In the growth stage, or market-acceptance stage, sales and profits rise, frequently at a rapid rate. Competitors enter the market, often in large numbers if the profit outlook is particularly attractive. Maturity: During first part of the maturity stage, sales continue to increase, but at a decreasing rate. When sales level off, profits of both producers and middlemen decline. The prime reason is intense competition. Decline: In this stage sales volume decreases and losses become grater than the profits. Small competitors normally quit from the market at this stage and only large and strong remain moderately successful in decline stage. NPL is at the growth stage of the product life cycle. Large and small both kinds of competitors are entering in the market. Sales volume and market share is increasing rapidly. Last year, the sales of water were 8000 tons and now this figure is raised up to 14000 tons.

4.2.4 Branding
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. Branding for Market Saturation: NPL is categorized as NPL Home and Office (HOD) in bulk (in gallons) and NPL for retailers i.e. easily carrying bottles of small sizes. These multiple brands are necessary to penetrate separate target markets. 4.2.5 Packaging, Design, Color

Packaging consists of all the activities of designing and producing the container or wrapper for a product. Packaging is intended to serve vital purposes: Packaging connotes pleasure and attraction. By adding value to the product, the shape of the bottle contributes to building brand identity. NPL round bottle and the classic elegance of bottle are instantly recognizable. Constant research into materials and styles generates innovative packaging in ever more attractive shapes, textures and colors. Renovation in design, graphic identity and labels helps set new standards and energize brands by anticipating trends in consumer tastes. By adopting a new dynamic design, a renovated and modernized square bottle is lunched by Nestl. Packaging practicality is a key factor for success. Beyond the basic requirements strength, water tightness, etc. ease of daily use is a subject of regular research. Innovation in this area can focus on transportation convenience, making the pack more comfortable to carry the bottle. Packaging is an essential protection. It guarantees product safety and quality from manufacturing through warehousing and distribution up until the end consumer. It is particularly crucial in preserving waters original purity over time. Several of Nestl Waters research programs aim to optimize material performance, while a battery of tests and ever more innovative capping techniques guarantee consumer safety on a daily basis. In addition to this primary role, packaging fulfils several complementary functions, including product identification and enhancement, practicality, consumer information, functionality to suit changing lifestyles, and so on. Given greater diversity in packaging types and quality, along with the emergence of new consumption patterns, packaging must also meet new ecological challenges. In this context, Nestl Waters continue its efforts to develop more environmentally friendly bottles. This responsible corporate policy relies on a dual approach: reducing both packaging weight and energy requirements during the manufacturing process while considerably increasing the quantity of material recycled. 4.2.6 Labeling A grade label is used in case of NPL. Grade label identifies the products judged quality with a letter, number, or word. Nestl is using different phrases words to show the quality of the product. Like Trust, Happiness, Pure, Pakistans favorite water, safe, healthy and Premium drinking water. 4.2.7 Quality Theres no agreement on a definition of product quality, even though it is universally recognized as significant. Quality is a relative term and it varies from person to person due to the personal interests; what one likes, another may dislike. But one thing is common that when an organization fulfills the expectations of the customers through its products then the image that organization is established as a quality-delivering organization. The same case is with NPL it is satisfying the needs and expectations of the customers through its standardized products.

Everyday, millions of people all over the world show their confidence on Nestl by choosing Nestl Pure Life. This confidence is based on quality image of Nestl and a reputation for high standards that has been built up over many years. Nestl commitment to product quality remains the corner stone of its business philosophy. In Pakistan too the Company has all along been committed to achieving the highest quality of its products. As a part of this effort, in 1993, the Company embarked upon the farm to table quality concept the guarantee about the quality of Nestl products up to the time of consumption by the consumer. Nestl expect this concept to result in its product becoming the product of choice for its consumers.

Quality is the cornerstone of NPL success: Every product on the shelf, every service and every customer contact helps to shape this image. A Nestl brand name on a product is a promise to the customer that it is safe to consume, that it complies Quality is the cornerstone of success.
Every product on the shelf, every service and every customer contact helps to shape this image. 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. 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 Nestl NPL at all times. Nestl people says: Quality is our most successful product. It is the key to our success, today and tomorrow. Natural or treated, all of Nestl Waters bottled waters undergo the same strict quality controls and adhere to different local and international regulations linked to their specificities. Based at the Product Technology Centre (PTC) in Vittel in France, the Central Laboratory carries out over 200,000 chemical and microbiological analyses every year. Linking two regional laboratories, the Central Laboratory is not only a quality guarantee of the resource and the final product, but also a centre of expertise for the hundred Nestl Waters production sites.

4.3 Price
Price is the amount of money and/or other items with utility needed to acquire a product. and utility is an attribute with potential to satisfy the wants. A product price influences wages, rent, interests, and profits. Some prospective customers are interested in low prices, where as another segment is more concerned with other factors, such as service, quality, value, and brand image. Consumers perception of quality may be influenced not just by price but also by such factors as store reputation and advertising. Pricing objectives may be: Profit- oriented:

To achieve a target return To maximize profit Sales-oriented To stabilize prices To maintain or increase market share Status quo-oriented: To stabilize the prices To meet competition In developing a marketing program, management has to decide whether to compete primarily on the basis of price or the non-price elements of the marketing mix. Nestl has adopted following for setting the pricing of NPL: 4.3.1 Non-price Competition Nestl is trying to maintain stable prices of NPL and attempt to improve its market positions by emphasizing other aspects of their marketing programs. Of course, competitors prices still must be taken into considerations, and price changes will occur over time. Nevertheless, the emphasis of Nestl is on something other than price. To maintain this non-price competition Nestl is developing distinctive, hopefully unique, products and to create a novel, appealing promotional program. In addition, it emphasizes the variety and quality of the NPL, which they are offering to customers. Market Entry Strategies The price of NPL is maintained constant over the period as the base for this is qualitative product which over the time period has reaped more market by keeping price constant. 4.3.2 Discounts and Allowances Discounts and allowances result in a deduction from the base (or list) price. The deduction may be in the form of reduced price or some other concession, such as free merchandise or advertising allowances. Discounts and allowances are common in business dealings. Nestl (NPL) offers the Trade Discounts to it customers. Trade discounts sometimes called functional discounts are deductions from the list price offered to buyers in payments for marketing functions the buyer will perform. The examples of these functions are: storing, promoting, and selling the product.

4.3.3 One-Price Strategy


NPL is using this special price strategy i.e. one-price strategy in which the company charges the same price to all similar customers who buy identical quantities of a product. But for different quantities the company is offering different price. Even prices are set for the NPL products. 4.3.4 Resale Price Maintenance Some manufacturers want to control the prices at which middlemen resell their products; this is termed as resale price maintenance. Nestl is also following this strategy. It is doing so to protect the brands image. They say that their control of prices provide middleman with ample profit margins. 4.4 Place Inn marketing strategy, Place means distribution of the products. It is a very important element of the marketing-mix. Ownership of a product has to be transferred some how from the individual or organization that makes it to the consumer who needs it and buy it. Goods also must be physically transported from where they are produced to where they are needed. For this purpose, middlemen are used. Middleman is a business firm that renders services related directly to the sale and/or purchase of a product as it flows from producer to consumer. Due to these middlemen, activities such as creating assortments and storing products can be shifted from one party to another in an effort to improve efficiency. They are also able to carry out distribution activities better or more cheaply than either producers or consumers. A distribution channel consists of the set of people and firms involved in the transfer of title to a product as the product moves from producer to ultimate consumer or business user. 4.4.1 Type of Distribution channel: Diverse distribution channels exist today. The distribution channel used for distribution of NPL by Nestl is: Producer Wholesaler Retailer Consumer

This is an economically feasible choice. Nestl Pakistan Limited has a strong network of distribution and has a separate supply chain department. This comes under the term:

4.4.2 Vertical Marketing System (VMS)


VMS is tightly coordinated distribution channel designed specifically to improve operating efficiency and marketing effectiveness. This is done by the Nestl. They have established an ownership relationship with the successive levels of the middlemen. 4.4.3 Supply chain management (SCM)

It represents a total system perspective of distribution, combining distribution channels and physical distribution. The core of supply chain management is coordinated logistics. Under supply chain management NPL is distributed through two main channels ie. 1. Consumer Retail Channel 2. Bulk Consumer a. Home b. Office 1. Consumer Retail Channel Company 2. Bulk Consumer Company Wholesaler Consumer Wholesaler Retailer Consumer

4.4.4 Considerations in selecting the channels Nestle is adopting foolowing considerations while selecting the distribution channel. Market consideration
It is necessary to know about the current marketing trends and also about the competitors. Product consideration It is necessary to give the good quality of NPL. Middleman Consideration Water is necessity of life so in time availability of NPL to the customer is very necessary. Company consideration Nestle also has to take care of its objectives while selecting the channel i.e. quality service and at reasonable distribution cost to get maximum profit.

4.4.5 Intensity of Distribution


There are many degrees of intensity__ ranging from intensive to selective to exclusive. The Nestl (NPL) uses Intensive Distribution. The company is trying to sell its products through every available outlet in a market, where a consumer might reasonably look for it. As water is a product of daily usage so its availability at right time and at right place is very important. Ultimate consumers demand immediate satisfaction from convenience goods and will not defer to purchase a particular brand. Thats why Nestl is using this intensive distribution. By using this timely distribution many benefits the Nestl (NPL) is receiving, such as: Improve customer service, which directly affects the demand. Effective physical distribution management opens many revenues for company. The strong and effective distribution channels has added value to product by both time utility and place utility. The Nestl brands are another strategic asset for Nestl Waters. They originated in the global need for a safe family drinking water with a pleasant taste, affordable price and tailored to local preferences. This need gave rise to a new multi-site production process for bottled water based on a simple idea: a single brand of water produced at a variety of sites, thus reducing costly logistical, warehousing and transport constraints which are particularly high in the bottled water sector enabling consumers to enjoy the product at a more attractive price under a strong brand identity. Careful Management of distribution channels has resulted in helping for Nestl to keep the stable prices of the Nestl Pure Life. 4.5 Promotion It consists of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade. From marketing point of view, Promotion informs, persuades, and reminds prospective and current customers and other selected audiences about a company and its products. The most useful brand is failure if no one knows it is available. 4.5.1 Promotional Mix A promotional mix is an organizations combination of personal selling, advertising, sales promotion, and public relations. An effective promotional mix is a critical part of all marketing strategies.

Promotion, in whatever form it takes, is an attempt to influence. Nestl is using following methods for promotion of NPL: 4.5.1.1 Advertising It is non-personal communication paid for by a clearly identified sponsor promoting ideas, organizations, or products. The most familiar outlets for ads used for the advertisement of the NPL by Nestl are the broadcast (TV and Radio) and print media (news papers and magazines). The Nestl also uses other advertising vehicles like billboards, Tshirts and, more recently the Internet. Nestl has its own website which is giving the information about the different brand of the company. Nestl is doing the selective demand advertising that is intended to stimulate demand for individual brands. In the advertisement the message is given that, There is one water, which gives you, hope, happiness and trust and that water is Nestl Pure Life. It is pure, safe, and healthy water. And in recent advertising campaign, their slogan is, JIYO! Kay yehi hay zindagi. On billboards the pictures of NPL advertisement seems so attractive, especially in summer season across the roads that it motivates the customer to purchase it immediately.

Nestl has the internal advertising department as well as hire the services of the external
Media manager assisted by its assistant to devise all campaigns

4.5.1.2 Sales Promotion


It is demand-stimulating activity designed to supplement advertising. It is paid for by the sponsor and frequently involved a temporary incentive to encourage a sale or purchase. Many sales promotions are directed at consumer. Nestl has designed it in away to encourage the companys sales force or other members of the distribution channel to sell products more aggressively. Nestl Pakistan limited arranges concerts, trade shows, event sponsorship, instore displays, and discounts. In Nestl, a separate sales department is working. The function of this department is to taking the sales orders, visiting the market, collecting the customers complaints and transferring to the concerned department. They also make sure the availability of the NPL to the consumer at right time and at right place. 4.5.1.3 Public relations It encompasses a wide variety of communication efforts to contribute to generally favorable attitudes and opinions toward an organization and its products. Unlike most advertising and personal selling, it does not include specific

sales message. The targets may be customers, stockholders, a government agency, or a special-interest group. Public relations can take many forms, including newsletters, annual reports, lobbying, and support of charitable and civic events. Nestl is following all above mentioned public relations forms: The company assists through donations such hospitals and organizations that provide services to the poor and responds to distress calls by the government and NGOs for assistance to victims of flood, earthquake, drought and other natural calamities. The company arrange mil program for undernourished and sick children and mothers through several NGOs and charitable organizations. The company has initiated a tube well and hand pump installation scheme in selected rural areas. It donates computers to schools for disadvantaged children run by NGOs and charitable organizations. To support the spread of education in rural areas, it undertakes Refurbishment Program of Govt. operated primary and middle schools. The Company regularly sponsors sports and cultural events, such as the International Polo Tournament and SAF Games in the recent past. The company gives the extra gifts, calendars and diaries to the employees and customers for public relations. 4.5.1.4 Publicity Publicity is also a promotional method used by the Nestl. Publicity is specific form of public relations that involves news stories about organization or its products. Like advertising, it consists of an impersonal message that reaches a mass audience through the media. But several features distinguish publicity from advertising. The company does not pay for it and it has little or no control over this and it appears as news and therefore has grater credibility than advertising. The company seeks for good publicity and frequently provides the material for it in the form of news releases, press conferences, and photographs. When a picture of a companys CEO appears on the cover of business publication and it accompanied by a flattering article in the magazine, it is often attributable to the efforts of the firms public relations department. 4.5.2 Integrated Marketing communication Nestl is using the integrated marketing communication system. In this, company is trying to coordinate all promotional efforts make an effective impact on the customer mind and to deliver a consist message. The Nestl has incorporated several different promotional campaigns. Depending upon the objectives and available funds, it undertakes simultaneous local, regional, national, and international programs.

Findings and Recommendations This is competitive world and must never forget that customers have a choice. If they are not satisfied with a Nestl Pure Life, they will switch to another brand. The pursuit of highest quality at any price is no guarantee for success, nor is a single-minded cost-cutting approach. Lasting competitive advantage is gained from a balanced search for optimal value to customers, by simultaneous improvement of quality and reduction cost. Success can never be taken for granted. Nestl must watch and learn from its competitors. If they do something better, Nestle must improve its own performance. Nestle can achieve competitive advantage through Quality. Progress is followed by listening to Nestle customers and by measuring its works performance. Shortcomings and mistakes must be analyzed and corrected. Problems must be anticipated and prevented before they occur. Nestle also must identify and take advantage of opportunities. To stand still is to fall behind. So Nestle must strive for continuous improvement in every area. It is through many small improvements as well as through major breakthroughs that Nestle will achieve excellence. We have observed from our extensive hard-work to compile these pages and after visiting the organization that the company is eager to serve consumers at its every possible level, consumer services department is the evidence of such a pursuit from the organization point of view. Presently the company is market leader in its category but it shouldnt take it as a complacent attitude rather capitalize on its good brand equity and to improve its quality of product to reap not only more profits for the shareholder but also serve the humanity by providing them healthful water which in other way a noble & sacred job. The company can fulfill this job by having such a spirit following it religiously by incorporating it all the marketing strategies. Bibliography Michael J. Etzel, Bruce J. Walker and William J. Stanton: Marketing 12 edition Philip Kotler: Marketing Management 12 edition Stephen P. Robbins, Mary Coulter: Management 7 edition
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