CHAPTER-1

INTRODUCTION

Nestlé was founded in 1866 by Henri Nestlé and is today the world's biggest

food and beverage company. Sales at the end of 2005 were CHF 91 bn, with a

net profit of CHF 8 bn. Nestlé employ around 250,000 people from more than

70 countries and have factories or operations in almost every country in the

world. The history of Nestlé began in Switzerland in 1867 when Henri Nestlé,

the pharmacist, launched his product Farine Lactée Nestlé, a nutritious gruel

for children. Henri used his surname, which means ’little nest’, in both the

company name and the logotype. The nest, which symbolizes security, family

and nourishment, still plays a central role in Nestlé’s profile. Since it began

over 130 years ago, Nestlé’s success with product innovations and business

acquisitions has turned it into the largest Food Company in the world. As the

years have passed, the Nestlé family has grown to include chocolates, soups,

coffee, cereals, frozen products, yoghurts, mineral water and other food

products. Beginning in the 70s, Nestlé has continued to expand its product

portfolio to include pet foods, pharmaceutical products and cosmetics too.

Today, Nestlé markets a great number of products, all with one thing

in common: the high quality for which Nestlé has become renowned

throughout the world. The Company's strategy is guided by several

fundamental principles. Nestlé'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

productsto people, wherever they are, whatever their needs, throughout their

lives.Taste of Nestlé in each of the countries where Nestlé sell products.

Nestlé is based on the principle of decentralization, which means each country

is responsible for the efficient running of its business - including the

recruitment of its staff.

That's not to say that every operating company can do as it wishes.

Headquarters in Vevey sets the overall strategy and ensures that it is carried

out. It's an approach that is best summed up as: 'centralize what you must,

decentralize what you can'. Nestlé is a company which is present in all over

the world but It has difference and unique motto to deal in all over the world.

Nestlé believes that they should think about their organizations globally but

they deal with people by interacting with them locally

MEANING OF NESTLE:

Henri Nestlé endowed his company with the symbol derived from his

name. His family coat of arms, the nest with a mother bird protecting

her young, became the Company's logo and a symbol of the company's

care and attitude to life-long nutrition. The Nestlé nest

represents the nourishment, security and sense of family that are so

essential to life.

 

CHAPTER-2

HISTORY

1866 -1905

In the 1860s Henri Nestlé, a pharmacist, developed a food for babies

who were unable to breastfeed. His first success was a premature infant

who could not tolerate his mother's milk or any of the usual substitutes.

People quickly recognized the value of the new product, after Nestlé's

new formula saved the child's life, and soon, Farine Lactée

HenriNestlé was being sold in much of Europe.

1905-1918

In 1905 Nestlé merged with the Anglo-Swiss Condensed Milk

Company. By the early 1900s, the company was operating factories in

the United States, Britain, Germany and Spain. World War I created

new demand for dairy products in the form of government contracts.

By the end of the war, Nestlé's production had more than doubled.

1918 -1938

After the war Government contracts dried up and consumers switched

back to fresh milk. However, Nestlé's management responded quickly,

streamlining operations and reducing debt. The 1920s saw Nestlé's first

expansion into new products, with chocolate the Company's second

most important activity

1938 -1944

Nestlé felt the effects of World War II immediately. Profits dropped

from $20 million in 1938 to $6 million in 1939.Factories were

established in developing countries, particularly Latin America.

Ironically, the war helped with the introduction of the Company's

newest product, Nescafe, which was a staple drink of the US military.

Nestlé's production and sales rose in the wartime economy.

1944 -1975

 The end of World War II was the beginning of a dynamic phase for

Nestlé. Growth accelerated and companies were acquired. In 1947

came the merger with Magi seasonings and soups. Crosse & Blackwell

followed in 1950, as did Findus (1963), Libby's (1971) and Stouffer's

(1973).Diversification came with a shareholding in L'Oréal in 1974.

1975 -1981

Nestlé's growth in the developing world partially offset a slowdown in

the Company's traditional markets. Nestlé made its second venture

outside the food industry by acquiring Alcon Laboratories Inc...

1981 -1996

Nestlé divested a number of businesses1980 / 1984. In 1984,Nestlé's

improved bottom line allowed the Company to launch a new round of

acquisitions, the most important being American food giant Carnation.

1996+

The first half of the 1990s proved to be favorable for Nestlé: trade

barriers crumbled and world markets developed into more or less

integrated trading areas. Since 1996 there have been acquisitions

including San Pellegrino (1997), Spillers Pet foods (1998) and Ralston

Purina (2002). There were two major acquisitions in North America,

both in 2002: in July, Nestlé merged its U.S. ice cream business into

Dreyer's, and in August, a USD 2.6bn acquisition was announced of

Chef America, Inc.

CHAPTER- 3

RESEARCH METHODOLOGY

3.1 Relevance of the Study

This research is been conducted to survey the product performance and

buying behavior of consumer in selection of chocolates. relevance of

the study is to survey the product performance and buying behavior

of two famous brands of chocolates – Nestle and Cadbury, which are

consumed by people of all ages. During this research I have interacted

with people of Junagadh City. This research is to know which

particular brand of chocolate is most preferred by people of different

age groups.

3.2 Research Problem

Every research has their own problem and limitation but good

researcher have to overcome that problem by their skill. In this

research problem I would like to understand and analyze about the

chocolates products available at Junagadh and collect the

feedback from group of people and I wanted to know the developments

made in direction of chocolates industry.

3.3 Objective of the study

This project is based on the comparative study consumer behavior

towards Nestle and Cadbury chocolates. Objectives of the study are:

The other objective is to know about the customer satisfaction level

associated with the product and the customer preference level.

To increase customer satisfaction and recapture the market share by

fulfilling the customer needs.

To study the factors affecting the consumption pattern.

3.4 Research Design

For any researcher the research methodology is the most important criteria to

decide before the actual research process starts.

There are many methods for conducting the research some of them are

as under;

a) Descriptive vs. Analytical

b) Applied vs. Fundamental

c) Quantitative vs. Conceptual vs. Empirical

e) Field setting or laboratory testing research

The design of search is a plan or a model that helps researcher

to conduct a formal investigation .It is an application of methods and

procedures for acquiring the information needs for getting a desire out

come. It decides the sources of data and methods for gathering data. A

good design insures that the information obtained is relevant to the

research question and that it was collected by objectives. Since,

research design is simply the frame work or plan for a study. It is a

blue print that of a house devised by an architect. My approach to

research is descriptive and quite specific. Out of these all research

methods the research method, which was most suitable to my research,

was

descriptive research

because it provides me all the opportunities to cover the all the aspect

that I require to conduct the research and get an appropriate out come.

Descriptive Research:

Descriptive research includes surveys and fact – finding enquires

of different kinds. The major purpose of descriptive research isdescript

ion of the state of affairs as it exits at present. In social scienceand

business research we often use the term

Ex post facto

research fordescriptive research studies. The main characteristic of this

method isthat the researcher has no control over the

variables; he can onlyreport what has happened or what is happening.

5. Scope of the Study:

As learning is a human activity and is as natural, as breathing. Despite

of the fact that learning is all pervasive in our lives, psychologists do

not agree on how learning takes place. How individuals learn is a

matter of interest to marketers. They want to teachconsumers in their

roles as their roles as consumers. They want consumers to learn

their products, product attributes, potential consumers benefit, how to

use, maintain or even dispose of the product and new ways of behaving

that will satisfy not only theconsumer’s needs, but the marketer’s

objectives.The scope of my study restricts itself to the analysis of

consumer preferences, perceptionand consumption of Cadbury

and Nestle Chocolates. There are many other brands

of chocolates available but my study is limited to two major

players of chocolates leaving behind the others. The scope of

my study is also restricts itself to junagadh region only.There are 2

sources of data i.e.

Primary Data

The data, which are collected for the first time, directly from the

respondents to the baseof knowledge & belief of the research, are

called primary data.The normal procedure is to interview some

people individually or in a group to get asense of how people

feel about the topic.So f a r a s t h i s r e sea r ch i s conce rned ,

p r ima ry da t a i s t he ma in sou rce o f i n fo rma t ion  provided

by the respondents.

Secondary Data

W h e n t h e d a t a i s c o l l e c t e d a n d c o m p i l e d i n t h e

i n a p u b l i s h e d n a t u r e i t i s c a l l e d Secondary data.So far

as this research is concerned internet, many brochures and

magazines have beenreferred too.

 

 

a) SAMPLING DESIGN

It is true that it is very difficult to do research with whole universe. As

we know that it isnot feasible to go with population survey

because of the numerous Doctors and their  scattered location. So

for this purpose sample size has to be determined well in advancedand

s e l ec t i on o f t he s amp le a l so ha s t o be s c i en t i f i c so

t ha t i t r ep re sen t s t he who le universe.So far as this research is

concerned, the sample size is 100.

b) INSTRUMENT

Taking into consideration research instrument selected by me is

questionnaire because itgives more flexibility in terms of data

and it has been asked to the responder personallyand have an

idea of getting an important unknown data that can be collected

through their  behavior.

c)

MODE OF DATA COLLECTION

Data collection mode is personal visit and filling up of the

questionnaire.

In attempt to make this project authentic and reliable, every

possible aspect of the topicwas kep t i n m ind .

Neve r the l e s s , de sp i t e o f f a c t cons t r a in t s we re a t p l ay

du r ing t he formulation of this project. The main limitations are as

follows:

Due to limitation of time only few people were selected for

the study. So thesample of consumers was not enough to generalize

the findings of the study.

The ma in sou rce o f da t a fo r t he s t udy was p r ima ry

da t a w i th t he he lp o f s e l f - administered questionnaires. Hence,

the chances of unbiased information are less.

People were hesitant to disclose the true facts.

The chance of biased response can’t be eliminated though all necessary

steps weretaken to avoid the same.

important. 78% says that they are mainly seeing the quality of the

product if the productis qualitative than they are ready to pay any price

for that product.

Que6. Which form of a chocolate do you like?

 

FORM OF CHOCOLATE

472918601020304050H A R D   C R U N C H Y   N U T T I E S   C H E W

Analysis & interpretation:

Eve ry pe r son have t he r e own t a s t e and p r e f e r ences t owards

t he e a t ab l e p roduc t i nchoco l a t e s t he r e a r e fou r va r i e t i e s

ava i l ab l e i n t he ma rke t among t h i s 47% o f t he consumer like

hard chocolates, 29% of the consumer like crunchy chocolates, 18% of

theconsumer like nutties chocolates & only 6% of the consumer like Chew

chocolates.

 

 

Que7. What pack do you purchase?

 

731710020406080

PACK PREFERENCE

S M A L L   B I G   F A M I L Y   P A C K

Analysis & Interpretation:

The chocolates are available in the market in different packaging like small,

big, & family pack, from the survey we can say that the consumption of the

chocolates are more

eaten  b y   t h e   t e e n a g e   g r o u p   s o   t h e y   m o r e   p r e f e r   t h e   s m a l

l   p a c k a g i n g   b e c a u s e   o f   t h e r e ava i l ab i l i t y i n ma rke t i s

good and mos t impor t an t t h ing i s i t s ve ry much

a f fo rdab l e .Acco rd ing t o t he su rvey 73% a re u s ing sma l l

pack , 17% a re u s ing b ig pack o f t he chocolates, 10% are consuming

family pack because of there high price. So we can easilysee that the

consumption of small pack is having boom in the market compare to

other  packaging.

Que8. Which promotional offers attract you most?

 

 

PROMOTIONAL OFFERS

12%84%4%FREE GIFTS PRICE OFFER ANY OTHER

Analysis & Interpretation:

To sell out the product there are many promotions activity conducted by the

company toface the competition the offer give by the company are

like free gift, price offer, or anyother scheme. In this 12% are giving the

free gift offer (scratch the card scheme), 84% aredirectly giving the price

offer, and 4% giving the any other kind of scheme.s

Que9.Which of these factors affects your purchase?

 

Analysis & Interpretation:

T h e r e   a r e   m a n y   f a c t o r s   a f f e c t i n g   a t   t h e   t i m e   o f   p u r c h a

s e .   S o   c o m p a n y   i s   d o i n g  promotional activities to acquire the

desired target of the product. Basically there are sixma i n   t ype  o f t he

p romot ion a l a c t i v i t i e s l i ke  69% o f   t he adve r t i s eme n t , 1%  o f

t he suggestions, 2% of the attractive display, 0%of the doctors advice, 21% of

the companiesare using Brand Ambassadors in there advertisement,

7% of the ingredients. So all thisfactors are affecting the purchase.

CHAPTER 4

PRODUCT

Coffee

Nescafe, Taster’s Choice, Ricoré, Ricoffy, Nespress, Bonka, Zoégas,

Loumidis.

Nescafe

Nescafe is a brand of instant coffee made by Nestlé. It comes in many

different product forms. The name is a portmanteau of the words

"Nestlé" and "café".[1] Nestlé's flagship powdered coffee product was

introduced in Switzerland on April 1, 1938[1] after being developed for

seven or eight years by Max Morgenthaler and Vernon Chapman.

Nescafe, a brand introduced by the Nestlé Company, can be traced

back to the 1930s.[3] In the United States, the Nescafe name was used

on its products until the 1960s. Later, Nestlé introduced a new brand in

the US called "Taster's Choice", which supplanted Nescafe for many

years. Taster's Choice was also introduced into Canada at the same

time, and continues to be sold as a separate product, branded as

superior to Nescafe, and is higher priced.

Taster choice

NESCAFÉ TASTER'S CHOICE Decaf House Blend is decaffeinated

using a process recognized by the industry as safe and designed to be

among the best to preserve the fine coffee flavor. The process is

approved by the FDA and other agencies around the world.

 Ricoré Ricoffy

Fresh percolated taste. Soluble granules of the finest coffee and

chicory.

Nespresso

Nespresso is the brand name of Nestlé Nespresso S.A., an operating

unit of the Nestlé Group based in Lausanne, Switzerland. Nespresso

machines brewespresso from coffee capsules, a type of pre-

apportioned single-use container of ground coffee and flavorings. In

1976, Éric Favre, an employee of Nestlé, invented, patented and

introduced the Nespresso system to the business market in Switzerland

without significant success. In 1988, due to the efforts of Jean-Paul

Gaillard — a business man, the inventor of «Le Club» community

—, the product became a market success. In 1990, the firm signed a

contract with Turmix, which started to sell Nespresso machines in

Switzerland. Thereafter, other contracts were signed

with Krups, Magimix, Alessi, Philips, Siemens and De'Longhi.

Bonka

Taste Natural - decaffeinated coffee beans

Zoéga

Coffee is the national drink of Sweden. Consuming more than 20 lbs.

of coffee per person, per year, Swedes know great coffee and

demand the best. Since 1886, four generations of Zoéga coffee

makers have been perfecting the art of coffee blending and roasting,

making the Zoéga name a hallmark. 

Loumidis

This is the decaffeinated version of the popular Papagalos - Loumidis

Coffee. Makes great traditional Greek Coffee without the caffeine!

Every cup of Greek Coffee contains 150mg of antioxidants which

operate as a protection shield of your cells. Vacuum packed to retain

its flavor and aroma for a long time. Packaging may vary.

Water

 Nestlé Pure Life, Nestlé Aquarelle, Perrier, Vittel, Contrex, S.Pellegrino,

Acqua Panna, Levissima, Arrowhead,

Nestlé Pure Life

Pure Life was launched in 1998 to help meet the global need for a safe

drinking water with a pleasant taste at an affordable price. Now

present in more than 20 countries, Pure Life is the world’s most

popular bottled water brand. 

Nestlé Aquarelle

Present in 11 countries in Europe, this natural spring water offers fresh

and light taste to the whole family Type: still or sparkling natural*

springwater.

Distribution channel: retail, out of home, home & office delivery

Perrier, Vittel

Perrier mineral water is the ultimate refreshment and sensorial

stimulation for intense pleasure moments. The spring from

which Perrier water is sourced has a unique balance of minerals and

light effervescence – providing a distinctively fresh, clean taste. It is

this blend of bubbles and minerals which have made the Perrier brand

the world leader of sparkling mineral water.

Vittel

Vittel is a French brand of bottled water sold in many countries. Since

1992 it has been owned by Nestlé.

Mineral water from the source at Vittel has been bottled and made

available for curative and, increasingly, for commercial purposes since

1854[1].

Vittel is the water provider for the London Marathon for the tenth

consecutive year in 2008.

S.Pellegrino

San Pellegrino (also S. Pellegrino) is an Italian brand of mineral

water with naturally occurring carbonation and additional carbonation

added by the bottler, produced and bottled by Nestlé at San Pellegrino

Terme, in theProvince of Bergamo, Lombardy, Italy. The water

contains carbon dioxide and at least the following chemical elements in

amounts of 100 or more micrograms per

liter: calcium, chloride, fluorine, lithium, magnesium,nitrogen, potassiu

m, silicon, sodium, and strontium. The strontium is naturally

occurring, not the radioactive strontium-90 . In popular culture, San

Pellegrino is portrayed as a luxury and expensive bottled water. Owned

byNestlé since 1997, San Pellegrino is exported to most countries

in Europe, the Americas, the Middle East, andAustralasia, as well as

to Japan, Taiwan, and Hong Kong.

Contrex

Recognised as the ideal water for the weight conscious since 1954,

Contrex is enjoyed in over 35 countries around the world.

Type: still natural mineral water,plain or flavoured

Distribution channel:

Acqua Panna

Originating from the hills of Tuscany, Acqua Panna partners S.

Pellegrino in top restaurants around the world.

Type: still natural mineral water

Levissima

It’s the “green” brand for excellence in Italy! Levissima is a national

role model in environmental sustainability in Italy, with the launch of

its 1-litre bottle partly made of recycled PET and recycling message on

all its bottles’ labels!

 Arrowhead

Arrowhead Water, also known as Arrowhead Mountain Spring Water,

is a brand of drinking water that is popular in the western United

States, particularly in Arizona, the Northwest, and in California, where

it is sometimes produced.

Other beverages

 Nestea, Nesquik

Nestea

Nestea is a brand of iced tea manufactured by Nestle and distributed

by Nestle company's beverage department in the United States and

by Beverage Partners Worldwide (BPW),[1] a joint venture

between The Coca-Cola Company and Nestle, in the rest of the world.

It competes with Unilever/PepsiCo's Lipton Iced Tea. It provides a

variety of "tea products", in regular and diet forms, including liquid

and powdered tea concentrates, refrigeratable teas, and ready-to-drink

bottles dispensed by vendor or vending machine. The beverage comes

in several flavors, depending on the country. Nestea has become the

subject of an investigation by PETA, which discovered cruel

experimentation conducted on rodents, in an "attempt to discover

possible health benefits

Nesquik

Nesquik is a family of milk beverage products made by

the Nestlé corporation. It began as a chocolate powdered flavoring mix

in the United States in 1948, as Nestlé Quick. In the 1950s, it was

launched in Europe as Nesquik. In countries with the Quick term

(including the USA, Canada, Mexico, and Australia, where it was

originally marketed under the name Nestlé's Quik), the name was

changed to the worldwide brand Nesquik in 1999. At the same

time, General Mills introduced Nesquik cereal, a breakfast cereal that

"turns milk into chocolate milk," which is similar to Cocoa Puffs.

Ice cream

Åhus Glass

Åhus Glass was a Swedish ice cream producer, situated in the locality

of Åhus in Kristianstad Municipality, Skåne County. The Swedish

word for ice cream is "glass". It started its fabrication in 1950. In 2002

the company Ingman bought the factory and instead of using the name

Åhus Glass, the ice cream became Ingman Glass AB. However, the

factory still produces ice cream, and since 2007, produces ice cream

under the original brand name of Åhus Glass. The factory specializes

in milk-free ice cream made with soya and lactose-free ice cream.

Häagen-Dazs 

Häagen-Dazs  is a luxury ice cream brand, established by Reuben and

Rose Mattus in the Bronx, New York, in 1961. Starting with only three

flavors: vanilla, chocolate, andcoffee, the company opened its

first retail store in Brooklyn, New York, on November 15, 1976.[1] The

business grew, and created franchises throughout the United States and

many other countries around the world.[2] Häagen-Dazs produces ice

cream, ice cream bars, ice cream cakes, sorbet and frozen yogurt.

Infant food

Cerelac is a brand of instant cereal made by Nestlé. The cereal is

promoted for infants 6 months and older as a supplement to breast milk

when it is no longer the sole item in an infant's diet. It is currently sold

in Belgium, Portugal, India, South Africa, Zimbabwe, Philippines,

South East Asia, and the Middle East.

Gerber Products Company is a purveyor of baby food and baby

products. A formerAmerican-owned company, Gerber is now a

subsidiary of Nestlé, and is currently located inFremont, Michigan,

USA.The company was founded in 1927 in Fremont, Michigan,

by Daniel Frank Gerber, owner of theFremont Canning Company,

which produced canned fruit and vegetables. At the suggestion of a

pediatrician, Gerber's wife Dorothy Gerber began making hand-

strained food for their seven-month-old daughter, Sally. Recognising a

business opportunity, Gerber began making baby food. By 1928, he

had developed five products for the market: strained peas, prunes,

carrots and spinach, and beef vegetable soup. Six months later,

Gerber's baby foods were distributed nationwide.

Health care nutrition

Boost is the brand name of a line of products first introduced in 1995

by Mead Johnson, which was purchased by Novartis along with all its

other adult nutrition products by Mead Johnson in 2002, and has been

sold to Nestlé along with the Gerber brand on September 1, 2007. It

was featured in popular news reports after a man filed suit claiming

that Boost Plus had caused his priapism. The ingredients of Boost Plus

are common food products or vitamins, present at 3 to 100% of

their recommended daily values. For example, the vanilla flavor

contains water, corn syrup solids, sugar, milk

protein concentrate, canola oil, high oleic sunflower oil, calcium

caseinate, sodium caseinate, corn oil, and less than 1% potassium

citrate, magnesium chloride, soy lecithin, calcium

phosphate, salt, sodium ascorbate, beta

carotene, biotin,niacinamide, calcium pantothenate, vitamin

B12, vitamin B6 hydrochloride, riboflavin, thiamin hydrochloride, folic

acid, potassium iodide,magnesium phosphate, artificial

flavor, choline chloride, vitamin E acetate, vitamin A

palmitate, vitamin D3, vitamin K1, carrageenan,potassium

chloride, zinc sulfate, manganese sulfate, cupric sulfate, chromic

chloride, sodium molybdate, sodium selenite, ferrous

Seasonings

Maggi

Maggi (pronounced [ˈmaɡi]) is a Nestlé brand of

instant soups, stocks, bouillon

cubes, ketchups,sauces, seasonings and instant noodles. The original

company came into existence in 1872 inSwitzerland, when Julius

Maggi took over his father's mill. He quickly became a pioneer of

industrial food production, aiming to improve the nutritional intake of

worker families. Maggi was the first to bring protein-rich legume meal

to the market, and followed up with a ready-made soup based on

legume meal in 1886. In 1897, Julius Maggi founded the company

Maggi GmbH in the German town of Singen, where it is still based

today.

Chocolate

100 Grand Bar 

100 Grand Bar (formerly known as $100,000 Bar) is a candy

bar produced by Nestléin the United States. It weighs 1.5 ounces

(42 grams) and includes chocolate, carameland crisped rice. The bar

contains 190 calories; it is low in cholesterol and sodium, but high

in saturated fat and sugar.[1] Its slogan is "That's Rich!"

Aero

Aero is a milk chocolate bar filled with bubbles of air, made

by Nestlé and primarily sold in the United Kingdom (where it

originated), Ireland, Mainland Europe, Brazil, South Africa, Argentina,

Australia, Middle East and Canada. The process of manufacture was

patented in 1935 by Rowntree's.[1][2] Registration of the trademark and

manufacture to market started soon afte

Petcare

Alpois an American brand of dog food marketed and manufactured by

the Nestlé Purina Petcare subsidiary of Nestlé. The brand is offered as

a canned or packaged soft food, as well as in dry kibbles.

CHAPTER 5

PROMOTION

Nestlé constitutes the bigger corporation in the field of research and

technology of foods. Her annual investment in Research and Growth is the

biggest of the branch   while her personnel   in this sector exceeds the 3.000

people.The Nestlé Research Centre   in Lausanne, where is carried out   the

basic research, is recognized globally   as one of the leading centres of

researches in his type with above 300 publications in valid scientific

publications each year.

      The main activity of Group Nestlé, which constitutes the bigger enterprise

of foodstuffs worldwide, is focused in the sector the general and special

human diet. Even if initially her work was based on the milk and the special

products of diet for children, many still products were added in her activities

with the byway of years, such as chocolates and   (CRUNCH, CAILLER, KIT

KAT, AFTER EIGHT, SMARTIES etc), coffee (NESCAFE, etc), drinks  

(NESTEA, NESQUIK etc), cooking products (soups, broths and mash

MAGGI, pastas BUITONI, tins LI[B]BY'S etc), products of refrigerator

(yoghurt CHAMBOURCY, ice-creams NESTLE, MOTTA and CAMY,

desserts etc), natural metal water (PERRIER, VITTEL, SAN PELLEGRINO

etc), frozen products (LEAN CUISINE) and products of cerials (FITNESS,

CLUSTERS, CHEERIOS etc). Also,in our days   NESTLE is taken action in

the sector of products of diet of small domestic animals (FRISKIES,

GOURMET, FELIX etc), as in the sectors of ophthalmologic (ALCON, OPTI

- FREE etc), dermatological pharmaceutical and cosmetic products

(NUTRADERM, BENZAC etc).

      In Greece, Nestlé has presence above 100 years and constitutes today one

from the bigger industrial companies of foods and drinks. The group Nestlé in

Greece is today constituted by the companies NESTLE GREECE S.A,

NESTLE GREECE ICE-CREAMS S.A, GROUP of CERIALS GREECE. and

ALCON INTERNATIONAL GREECE LTD, has totally in 4 factories and

occupies in total 1350.

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.

Promotional

A promotional mix is an organization’s 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. Nestlé is

using following methods for promotion of NPL:

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

Nestlé are the broadcast (TV and Radio) and print media (news

papers and magazines). The Nestlé also uses other advertising

vehicles like billboards, T-shirts and, more recently the Internet.

Nestlé has its own website which is giving the information about

the different brand of the company.

Nestlé 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 Nestlé 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. Nestlé has the internal advertising department as well

as hire the services of the external

Media manager assisted by it’s assistant to devise all campaigns……

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. Nestlé has designed it in

away to encourage the company’s sales force or other members of

the distribution channel to sell products more aggressively. Nestlé

Pakistan limited arranges concerts, trade shows, event sponsorship,

in-store displays, and discounts. In Nestlé, a separate sales

department is working. The function of this department is to taking

the sales orders, visiting the market, collecting the customer’s

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.

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.

Nestlé 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.

Publicity

Publicity is also a promotional method used by the Nestlé. 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 company’s 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 firm’s

public relations department.

Integrated Marketing communication

Nestlé 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 Nestlé 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 Nestlé 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. Nestlé 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 it’s category but it shouldn’t 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

 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.Nestlé is offering the products,

which comes under the category of fast moving consumer goods

(FMCG).Nestlé is committed to offering consumers high-quality food

products that are safe, tasty and affordable. The Nestlé 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 Nestlé has planned the product

strategies for NPL.

Positioning the Product In relation to the attribute

Nestlé is positioning its water as pure and safe water, which is essential

to good health. They say that Trust Nestlé Pure Life and also Nestlé

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 Pakistan’s favorite water and currently

their slogan is JIYO! kay yehi hay zindagi. On basis of these, it is said

that Nestlé 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.

Product Line Expansion

Product line expansion is accomplished by increasing the depth

(variety of sizes, colors, models) within the product line.

Nestlé 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 Nestlé Bulk category.

3 Gallon

5 Gallon

The year 2005 saw the successful completion of yet another year of

outstanding business for NESTLÉ 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.

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.

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.Nestlé is using

following branding strategies:The company name combined with a

product name:

A Nestlé brand name on a product is a promise to the customer that it is safe to

consume, that it complies with all regulations and that it meets high standards

of quality.

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.

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 Nestlé. 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 water’s original purity over time.

Several of Nestlé 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, Nestlé 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.

Labeling

A grade label is used in case of NPL. Grade label identifies the

product’s judged quality with a letter, number, or word. Nestlé is using

different phrases words to show the quality of the product. Like Trust,

Happiness, Pure, Pakistan’s favorite water, safe, healthy and Premium

drinking water.

Quality

There’s 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

Nestlé by choosing Nestlé Pure Life. This confidence is based on quality

image of Nestlé and a reputation for high standards that has been built up over

many years.

Nestlé 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 Nestlé products up to the time of consumption

by the consumer. Nestlé 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 Nestlé 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 Nestlé brand name on a product is a promise to the

customer that it is safe to consume, that it complies with all regulations and

that it meets high standards of quality. Under no circumstances will we

compromise on the safety of a product and every effort must be made to avoid

hazards to health. Likewise, compliance with all relevant laws and regulations

is a must and is not negotiable. People, equipment and instruments are made

available to ensure safety and conformity of Nestlé NPL at all times. 

Nestlé people says:

Quality is our most successful product. It is the key to our success,

today and tomorrow. Natural or treated, all of Nestlé 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

Nestlé Waters’ production sites.

CHAPTER 6

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.

Consumer’s 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.

Nestlé has adopted following for setting the pricing of NPL:

Non-price Competition

Nestlé 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 Nestlé is on something other than price.

To maintain this non-price competition Nestlé 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.

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. Nestlé

(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.

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.

Resale Price Maintenance

Some manufacturers want to control the prices at which middlemen

resell their products; this is termed as resale price maintenance. Nestlé

is also following this strategy. It is doing so to protect the brand’s

image. They say that their control of prices provide middleman with

ample profit margins.

Global pricing policies:

Apart from global coordination of prices on specific products and firms

usually adoptone of the three alternative pricing policies that cut across

their product lines. theseare

1 . P o l y c e n t r i c   p r i c i n g   2 . G e o c e n t r i c

p r i c i n g   3 . E t h n o c e n t r i c   p r i c i n g  

 Nestle use geocentric pricing policy.

Nestle Products price planning

Nestle dairy products are priced keeping in view the buying

power of middle-income and high-income social classes.

The   cos t   i nc lud es   t he   cos t   o f  man ufac tu r i ng ,   l abo r ,   r a

w  ma te r i a l s   e t c .  The indus t ry s a l e s g rowth i s l a rge ly

d r i ven by popu l a t i on g rowth a s we l l a s t he amount of

advertising and product innovation taking place in the

industry. Thecompany has resorted to pricing discrimination

strategies to maximize the valueof consumer demand Being a

multinational brand, the pricing objective of Nestle is mainly to

increasesales as it has already penetrated the market. Their prices are

not affected by pricechanges by competitors, and they don’t engage in

price wars. Competition is mett h rough i nnova t i on . The p r i c e s

o f Nes t l e m i lk change a s t he p roduc t s i z e i s changed o f

t he P roduc t L i f e Cyc l e . And Because o f t he con t r ac t

be tween t he seller companies, they offer same price. So there is no

skim based or penetration based pricing by company.The retail

prices are different according to there size and brand.

However priceshave been standardized throughout Pakistan and

there is no differentiation basedon geog raph i ca l a r ea s . The re

i s no change i n p r i c e s a cco rd ing t o s ea son . I t remains the

same.They adopt same strategy in international marketing as in

local marketing. But the prices are according to the international

currency

NESTLE PRICING STRATEGY

Price

In Price strategy, Nestle has adopted the strategy of non-price

competition. It is offering one price for NPL to all. It also keeps the

check on distributors to maintain single price of NPL. It offers

trade discounts to its distributors. 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. Consumer’s perception of

quality may be influenced not just by price but also by such factors

as store reputation and advertising. Nestlé estimated the cost by

doing accumulated production because if they produced mass

production so it reduced their labored cost and other cost for

production process it’s a big advantages of the Nestlé company

who produce large quantity of units. With the help accumulated

production Nestlé Company has a low cost of production and high

profit margin. Next, Nestlé company selecting a price method of

going rate price because their pricing near the competitor pricing.

As an example, Nestle juices have a market leader in beverage

industry. Last, Nestlé set the final pricing related to their market

competitors so Nestlé price do not have impact on the company

policy , and other marketing activities.      

Pricing Strategy Patterns

The desire to smooth prices has been posited by coffee

manufacturers as one

explanation for not fully adjusting prices to changes in costs. In an

investigation by the United Kingdom Competition Commission,

Nestle commented:Starbucks spokeswoman Helen Chung stated,

“We do not change our prices based on short-term fluctuations in

the coffee market” (Seattle Times,December 7, 1999). P&G

commented in conjunction with its 2004 priceincrease that P&G

“increases product prices when it is apparent that commodity price

increases will be sustained” (Associated Press, Dec. 10,2004).

Coffee manufacturers often cite movements in futures prices as

moti-vation for price adjustments, further corroborating their stated

desire tosmooth prices. Not evident from market-level averages is

the fact that individual manufacturer prices often remain fixed for

long periods of time. Figure 2 presents a typical manufacturer-price

series for Folgers coffee.Historically, adjustments in prices have

occurred primarily when coffee commodity prices are relatively

volatile. Table 5 presents the standard deviation of weekly coffee

commodity prices by year, as well as the average

frequency of manufacturer price adjustments during the year

FINAL STRATEGY OF NESTLE

Nestle is one of the world’s number one food company since their

beginning in 1866 when they started in Vevey Switzerland. They

are also one of the largest food businesses comprising of almost

500 factories and more than 250,000 workers all over the world.

Nestle has been accepted with their bestselling products including

Milo, Nido, Bear Brand, Nestea, Neslac, Nestogen, Nescafe etc.

these products has been passed on through generations. It has been

a product of tradition that passed on until today; it is a product of

hereditary choice. Their products are regarded as one of the most

suitable food that is highly recommended for the whole family.

Nescafe has been a part of staple food among nations, The Milo

tonic food drink and Bear brand carries their flagship products that

even sports enthusiast will love. This has become an energy giving

food that supplies a well rounded personality and nutritious value

for children and adults alike. Undoubtedly their products have

demonstrated unprecedented market dominance and successful

strategic marketing practices that has been envied and imitated by

other large corporation that has always been their competition. And

this has been their open secret of success. The distribution strategy

integration throughout the world has become their most sustainable

marketing arm that caters entirely to its original market. This

distribution system covers the entire world that should be regulated

and maximize to have an equal share or according to their market

responses, that is why the distribution strategy has become very

successful and accurately achieved, this means that no amount of

products will be left in bad orders or expiration.

.

Chapter 7

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.

Type of Distribution channel:

Diverse distribution channels exist today. The distribution channel

used for distribution of NPL by Nestlé is:

Producer  Wholesaler  Retailer  Consumer

This is an economically feasible choice. Nestlé Pakistan Limited has a strong

network of distribution and has a separate supply chain department. This

comes under the term:

Vertical Marketing System (VMS)

VMS is tightly coordinated distribution channel designed

specifically to improve operating efficiency and marketing

effectiveness. This is done by the Nestlé. They have established an

ownership relationship with the successive levels of the

middlemen.

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  Wholesaler  Retailer  Consumer

2. Bulk Consumer

Company  Wholesaler  Consumer

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.

Intensity of Distribution

There are many degrees of intensity__ ranging from intensive to

selective to exclusive.

The Nestlé (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. That’s why Nestlé is using this intensive distribution. By

using this timely distribution many benefits the Nestlé (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 Nestlé brands are another strategic asset for Nestlé 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

Nestlé to keep the stable prices of the Nestlé Pure Life.

Marketing

Marketing is the process of planning and executing the conception, pricing,

promotion and distribution of ideas, goods and services to create exchanges

that satisfy individual and organizational goals. While strategy is the action

plan to do something and hence,

Marketing Strategy is the managerial process of developing and maintaining a

viable fit between the organization’s objectives, skills and resources and its

changing market opportunities. The aim of marketing strategy is to shape the

company’s business and products so that they yield targeted profit growth.

Nestlé Pakistan Limited is selected to study that how they have planned their

marketing strategy for Nestlé Pure Life (water). Nestlé is a multinational food

company and offering Fast Moving Consumer Goods (FMCG). The motto of

Nestlé is “Good Food, Good Life”, so delivering the qualitative products to the

customer is their main objective. It is offering 75 brands of bottled waters

worldwide. Nestlé Pure Life (NPL) is one of them that was first offered in

Pakistan by Nestlé Pakistan Limited in 1998. People felt need of Pure, safe

and clean water because of impurities in water especially in the industrialized

cities like Karachi, Lahore, Faisalabad etc. Nestlé identified this opportunity

and lunched NPL that satisfied the customer needs and Nestlé become market

leader in the water industry.

The customers of NPL showed interest on NPL because of trust on Quality of

Nestlé, at the heart of which there are qualitative products and its long term

commitment to deliver better products to consumers. Being the market leader,

the market share of NPL is 78% that is much higher than its competitors. NPL

is passing through its Growth stage (of Product Life Cycle) i.e. its sales are

increasing tremendously and competitors are entering in the market like Aqua

Fina by Pepsi and Askari Waters.

There are different SKU’s of NPL to cover a wide market needs like for Home

and office delivery there are 3gallon and 5 gallon bottles (bulk usage) and for

day to day usage easily carrying light weight like “1.5, 0.5, 0.2 liters” bottles

are available in the market. Still Nestlé is working on bringing the changes and

innovation in this field. For this it has close relationship with its suppliers and

distributors to get their suggestion to improve the quality of NPL.

Nestlé Pakistan also has the Customer Service Department with the logo "Talk

to Nestlé" in Lahore to receive the complaints and suggestions from the

customers. In this way Nestlé analyze its market and becomes aware of the

new market trends.

Marketing strategy include 4 P’s strategy i.e. Product, Price, Place and

Promotion strategies.

Product is something that is offered to the market. NPL product strategy

studies show that they are positioning the product with respect to its attributes

that NPL is safe, pure, refreshing and healthy water. Nestlé also does product

line expansion; recently it has offered a 0.25 liter bottle of NPL in the market.

It’s also using the company name with its product name i.e. Nestlé Pure Life.

NPL round shape and elegance of the bottle are instantly recognizable. Quality

is cornerstone of NPL success. Nestle people say: “Quality is our more

successful product and it is key to our success today and tomorrow.”

In Price strategy, Nestle has adopted the strategy of non-price competition. It

is offering one price for NPL to all cities of Pakistan. It also keeps the check

on distributors to maintain single price of NPL. It offers trade discounts to its

distributors.

Placement is the distribution of the product to its customers at right time, in

right quantity, at right price and at right place. To ensure this, channel adopted

by the Nestlé for distribution of NPL is as follows:

Producer  Wholesaler  Retailer  Consumer

NPL comes under the category of FMCG, so for this the timely supply is very

important that’s why Nestlé is following intensive distribution strategy.

Promotion is the very important and crucial element of marketing strategy as

through it the company establishes its image in the minds of the customers.

NPL is promoted by using different ways of promotion. Advertisement of

NPL is done through TV, radio, billboards, newspapers and magazines.

Current advertising slogans are that NPL is trust, hope and happiness

and JIYO! Kay yahi hay Zindagi. Nestlé also conducts the tradeshows,

concerts, events, sponsorships, and discounts for sales promotion. For

establishing public relations, Nestlé distributes its newsletters, annual reports,

calendars and diaries, lobbying, donation for charitable and civic events. For

the victims of 8th October 2005 earthquake, Nestlé has donated 90 trucks,

which were containing different foods items, and NPL was one of them which

is around Rs. 2 Billion. The Nestle organized its teams to distribute products

to the effected areas and all employees contributed from top to bottm (MD

himself was involved personally to distribute products

physically)organizational structure of Nestlé is hierarchical.

there is a chain of command that extends from upper organization levels to the

lowest levels and clarifies who reports to whom. The orders move from

upward to downward and suggestions move downward to upward direction.

The continuous improvement section is made for this purpose. It encourages

employees to give their suggestions and share the new ideas. The jobs are

formalized; there are explicit job descriptions, numerous organizational rules,

and clearly defined procedures covering work procedures. But in spite of

formal rules and regulations, Nestlé keeps on changing to keep a pace with the

changing environment. So, it is strict but not rigid organization. In effort to be

more flexible and responsive, there has been distinct trend in this organization

toward decentralizing decision-making.

CHAPTER- 8

Conclusion

For a company that will turn one hundred in a decade, Nestle has almost tried

all of the strategies there can be.  Nestle company has expanded

internationally, helped countries’ economies grow, be environmentally

conscious and create joint ventures with other companies in which enhanced

Nestlé’s and these companies’ performance positively.  Followed are a couple

of recommendations in which might enhance their performance which are:

Exploit lands in poor countries:

It’s just like what they did for Nestle such countries are in South Africa for

they suffer starvation.  Nestle can take advantage of the deserted lands, turn

them to farms and employ from that land’s population to overcome their

starvation problem or at least decrease.  This way, the company will still keep

their values of being a people’s company, which cares of people.

 

Avoid actions that are bound to fail

 Even though there is no way that someone can know the future, but a good

management team should be able to extrapolate if a plan they have might back

fire such as the scandalous event resulting from their oil practices, for

cosmetics, activities mentioned earlier.  They should’ve expected that dealing

with such activities might result in leakage and that they should’ve taken

precautions before head.

 

Invest on R&D

 Nestle should concentrate on that in order to come up with new products. 

Since the company started out to serve infants in need for nutrition, Nestle

should enhance and find way to enrich their product with substances and

vitamins that will provide children their daily needs of calcium and even

mothers.  Because they should start from mothers’ health in order to provide

infants’ health.   Especially now when children suffer diabetes amongst other

things, they need more care than before.

 

Joint ventures

Nestle should carry on with their partnership activities that will increase their

competitive advantage more.  However, they shouldn’t venture their business

with companies that can’t sustain the pressure of the market and in which

waver under the scrutiny of competitors.  They should choose qualified

companies and companies that show promising performance.

 

Even though the future can’t be told by looking at numbers and financial

performance, companies should extrapolate what might happen and look at all

the angles of matters in both ways, positively or negatively.  This action is

crucial in the business field in order to come up with a plan to overcome these

obstacles and enhance their strengths for a better performance in the market. 

This report outlaid, evaluated and analyzed Nestlé’s performance in the

market along with presenting recommendations that might help the company

upgrade their activities in the market.

 

CHAPTER-9

BIBLIOGRAPHY

WEBSITES:

http://www.studymode.com

http://download-reports.blogspot.in/2011/04/marketing-strategy-of-nestle-

nestle.html

http://en.wikipedia.org/wiki/List_of_Nestl%C3%A9_brands