Marketing New Product Launch

In The Name of ALLAH The Most Beneficial, The Most Merciful.
Project of Marketing
LAUNCHING A NEW PRODUCT
Presented By;
AAMIR RAZA
SABEEL FARHAN Presented To,
AMMARA SAMREEN Sir Faheem Athar Haqqani

ZAINAB NADEEM University of Sargodha
Group (A)
M.B.A. Regular “A
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“ACHI SEHAT KA KHAZANA, NESDAIRY KA BUTTER HI KHANA”
DEDICATION
We would like to thank our professor Mr. Faheem Athar Haqqani who was always
there to help and guide us when we needed help. His perceptive criticism kept me working to
make this project more full proof. We are thankful to him for his encouraging and valuable
support. Working under him was an extremely knowledgeable and enriching experience for us.
We are very thankful to him for all the value addition and enhancement done to me.
No words can adequately express my overriding debt of gratitude to my parents whose support
helps me in all the way. Above all I shall thank my friends who constantly encouraged and
blessed me so as to enable me to do this work successfully.
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ACKNOWLEDGEMENT
“To Him belongs the dimension of the Heavens and the earth, it is He who gives Life and
death and He has power over all things.”
(Al-Quran)
All acclamation to Allah who has empowered and enabled us to accomplish the task
successfully. First of all we would like to thank our Allah Almighty who really helps us in every
problem during the project. We would like to express our sincere and humble gratitude to
ALLAH almighty who’s Blessings, help and guidance has been a real source of all our
achievements in our life. We would like to admit that we completed this project due to parents
who pray for our success. We also wish to express our appreciation to our supervisor Mr.
Faheem Athar Haqani who help us a lot and introduce us to new dimensions of knowledge. And
we would like to acknowledge all our work to our parents and friends who guided to accomplish
this never forgetting task. Last but not the least our team efforts, support, cooperation and
encouragement showed by each members in the group with each other.
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TABLE OF CONTENTS
 Executive summary 06
 Company
o Company Introduction 07
o Mission statement 08
o Vision statement 08
o Background of the company 10
o History of Nestle 11
o History of Nestle Logo`s 14
o Nestle brands in Pakistan 15
 SWOT analysis 27
o Strengths
o Weaknesses
o Opportunities
o Threats
 Market research
o Introduction of research 30
o Scope of the study 31
o Limitations of the study 32
o Research methodology 33
o Research Conclusion 39
 Brand description 41
o Logo 41
o Caption statement 41
o Key to success 42
o Segmentation 43
o Targeting 45
o Positioning 46
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 Marketing mix 48
o Product 50
o Price 61
o Place 65
o Promotion 69
 Conclusion 76
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EXECUTIVE SUMMARY
T his project is about new product development by Nestle. Nestle has the distinction
of being largest in innovations strategies. We have launched a new brand under
corporate brand Nestle..
“As the worlds number one f ood company, our challenge goes beyond
provi ding saf e, bygieni c packaged f ood.Our the years f ood product s have
evolved f rom mere product s to a statement of lif estyle.
Nestle brands aredesi gned to suit your lif est yle and your needs.
We have int roduced our product aft er a co mplet e research o f market we

find out t hat peoples are willing t o buy our product t hat we have launched in a
sophist icat ed packaging wit h reasonable pr ice. Most peoples r espo nds in a much
bet t er way about our product . Aft er free sample dist r ibut ion we have gained a
co mpet it ive edge.
Now we are int roducing a new br and na med ―NESDAIRY‖ . Under t his
brand we are launching a new product ―KNI FE & BUTER‖. About which we
co mplet ely defined as under, It has many competi tive advan tages tha t wi ll ensure
profitability and its a ccepta nce in s ociety.
 The mos t impor tan t fea ture o f ou r new pr oduct is tha t it is qualityconsious.
which will satisfy the need s o f heal th con sci ous pe ople.
 We recognize that our mo st impor tan t j ob i s to provide o ur customers, feeling
them to have an ex cellent bal a nced diet.
“Our main focus is to satisfy our customers”
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INTRODUCTION OF NESTLE
Nestlé is the world's leading food company. Since it was set up by Henri Nestlé to provide an
infant food product, it has been associated with providing high quality, customer and consumer
focused products. In recent years it has focused on becoming a nutrition, health and wellness
company. Wellness is about supporting people to live more healthy lives e.g. through the
development of probity yoghurts that help maintain the balance of the digestive system. The
company is a world leader in research and development, and Nestlé's scientists work in all areas
to create healthier and more nutritious foods.
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MISSION STATEMENT
“Nestle is dedicated to providing the best foods to people

throughout their day, throughout their lives, throughout the world, with our unique
experience of anticipating consumers need`s and creating solutions, nestle
contributes to your well-being and enhances your quality of life”.
VISION AND STRATEGY
The Nestlé global vision is to be the leading health, wellness, and Nutrition Company in the
world. Nestlé Pakistan subscribes fully to this vision. In particular, they envision to:
 Lead a dynamic motivated and professional workforce – proud of its heritage and bullish
about the future.
 Meet the nutritional needs of consumers of all age groups – from infancy to old age, from
nutrition to pleasure, through an innovative portfolio of branded food and beverage products
of the highest quality.
 Deliver shareholder value through profitable long-term growth, while continuing to play a
significant and responsible role in the social, economic and environmental sectors of the
country.
 Nestlé has profitable and diversified high quality food and beverage product portfolio,
delivering 60:40+ advantage to consumers, available across all sales channels.
 Nestlé brands are the preferred choice in their categories. Consumer insight drives all aspects
of their marketing and communication efforts.
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 Their communications to the consumer are relevant, cutting-edge, and adhere to the highest
standards of responsible communication.
 Nestlé Company is seen as the No. 1 career destination for talented, motivated and ambitious
professionals.
 Their result-oriented organizational structure ensures effective communication and
empowered self-management.
 Nestlé milk collection and agri services will continue to play the primary role in development
of the dairy sector in rural Pakistan.
 Their proactive innovation and renovation culture is the key to their success in the
marketplace.
 Fully integrated systems (Nestlé Pakistan, suppliers, customers) ensure efficient business
processes.
 Non-strategic activities and products are outsourced or discontinued.
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BACKGROUND OF THE COMPANY
Nestlé Company had started off from a single man's idea, and developed into a giant
corporation. In 1866 Henri Nestlé, a pharmacist, developed a milk food formula for infants who
were unable to tolerate their mother milk (Nestle.com). His product became a success, and it
created a demand throughout Europe. As Nestlé’s popularity grew more businesses wanted to
merge and become partners with Henri Nestlé's business. From 1866 to 1947 the Nestlé
Company had gone through several name changes. In 1905, Anglo-Swiss Condensed Milk Co.
and Farine Lactee Henri Nestlé merged, and the company’s name became Nestlé & Anglo-Swiss
Condensed Milk Co. Then in 1929, Peter-Cailler-Kohler Chocolates Suisse’s S.A. merged with
the company. The name was then changed to Nestlé & Anglo-Swiss Holding Co. Ltd, on
November 27, 1936. In December 1947, Co. acquired all the shares capital of the Alimentana
S.A. Company in exchange for fifteen Nestlé shares and fifteen Unilac shares for each of
Alimentana S.A. share, so this point the name was at Nestlé Alimentana S.A. And then finally,
the last name change that the company would endure was in 1977, where it adopted the name
Nestlé SA (Mergent Online). Along the way Nestlé’s company remain successful, which allowed
them expand to new region and territories throughout the world, making them the world’s
biggest food and beverage company. Nestlé’s headquarters are located in Vevey, Switzerland,
but the Nestlé Company has factories or operation in almost ever country in the world. In
addition, to the increase in the size of the Nestlé Company.
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HISTORY OF NESTLÉ
1866-1905
The key factor which drove the early history of the enterprise that would become The Nestlé
Company was Henri Nestlé's search for a healthy, economical alternative to breastfeeding for
mothers who could not feed their infants at the breast. Nestlé’s first product was called Farine
Lactée (―corn flour gruel‖ in French) Henri Nestlé. Nestlé's first customer was a premature infant
who could tolerate neither his mother's milk nor any of the conventional substitutes, and had
been given up for lost by local physicians.
1905-1918
The Company formed by the 1905 merger was called the Nestlé and Anglo-Swiss Milk
Company. By the early 1900s, the Company was operating factories in the United States, Britain,
Germany and Spain. Condensed-milk exports increased rapidly as the Company replaced sales
agents with local subsidiary companies. In 1907, the Company began full-scale manufacturing in
Australia, its second-largest export market. Warehouses were built in Singapore, Hong Kong,
and Bombay to supply the rapidly growing Asian markets.
1918-1938
The end of World War I brought with it a crisis for Nestlé. Government contracts dried up
following the cessation of hostilities, and civilian consumers who had grown accustomed to
condensed and powdered milk during the war switched back to fresh milk when
1938-1944
The effects of the onset of World War II were felt immediately by Nestlé. Profits dropped
from $20 million in 1938 to $6 million in 1939. Neutral Switzerland became increasingly
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isolated in a Europe at war, and the Company transferred many of its executives to offices in
Stamford,
As in World War I, production and sales rose in the wartime economy: Nestlé's total sales
jumped from $100 million in 1938 to $225 million in 1945. As the end of the war approached,
Nestlé executives found themselves unexpectedly heading up a worldwide coffee concern, as
well a company built upon Nestlé's more traditional businesses.
1944-1975
The close of World War II marked the beginning of the most dynamic phase of Nestlé's history.
Throughout this period, Nestlé's growth was based on its policy of diversifying within the food
sector to meet the needs of consumers. Dozens of new products were added as growth within the
Company accelerated and outside companies were acquired.
1975-1981
After the agreement with L'Oréal in 1974, Nestlé's overall position changed rapidly. For the first
time since the 1920s, the Company's economic situation deteriorated as the price of oil rose and
growth in the industrialized countries slowed. Nestlé's rapid growth in the developing world
partially offset a slowdown in the Company's traditional markets, but it also carried with it the
risks associated with unstable political and economic conditions. To maintain a balance, Nestlé
made its second venture outside the food industry by acquiring Alcon Laboratories, Inc., a U.S.
manufacturer of pharmaceutical and ophthalmic products.
1981-1995
Under a new Chief Executive Officer, Helmut Maucher, Nestlé approached the 1980s
with a renewed flexibility and determination to evolve. The Company's strategy for this period
was twofold: improve its financial situation through internal adjustments and divestments, and
continue its policy of strategic acquisitions.
Thus, between 1980 and 1984, the Company divested a number of non-strategic or unprofitable
businesses. At the same time, Nestlé managed to put an end to a serious controversy over its
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marketing of infant formula in the Third World. This debate had led to a boycott of Nestlé
products by certain lay and religious organizations. This issue is still alive in some quarters, but
there is no longer any significant boycott activity.
1996-2002
The first half of the 1990s proved to be a favorable time for Nestlé: trade barriers
crumbled and world economic markets developed into a series of more or less integrated trading
areas. The opening of Central and Eastern Europe, as well as China, and a general trend towards
liberalization of direct foreign investment was good news for a company with interests as far-
flung and diverse as Nestlé. While progress since then has not been as encouraging, the overall
trends remain positive.
In July 2000, Nestlé launched a Group-wide initiative called GLOBE (Global Business
Excellence), aimed at harmonizing and simplifying business process architecture; enabling
Nestlé to realize the advantages of a global leader while minimizing the drawbacks of size.
2003 and Now
The year 2003 started well with the acquisition of Mövenpick Ice Cream, enhancing Nestlé's
position as one of the world market leaders in this product category. The years that followed saw
consistent business growth through innovation and renovation of the products. Nestlé made three
significant acquisitions in 2007. The first was Novartis Medical Nutrition which put Nestlé in a a strong
number two position globally for healthcare nutrition.
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HISTORY OF THE NESTLÉ LOGO
The Nestlé logo was launched by Henri Nestlé in 1868 on the basis of the meaning of his
name in German, i.e. little nest, and of his family emblem.
Henri obtained a 15-year French patent for his logo in 1868.

After he retired, it was registered in Vevey in 1875 by the new owners of his
company.
In 1938, the traditional nest design was combined with the "Nestlé" name to
form what is called the combined mark.
In 1966 the design was simplified.
In 1988, the worm in the mother bird's beak was removed and the fledglings
became two instead of three. It is said that it was meant to better illustrate the
activities of the company, no longer active only in nutrition, and to reflect the
average modern family of two children.
The logo we know now has just been simplified. The tree is supposed to represent
an oak and the bird’s thrushes.
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Nestlé is a multinational packaged food company founded and headquartered in Vevey,
Switzerland. It has also its branches in Pakistan.
NESTLE PRODUCTS
Nestlé has a wide range of products across a number of markets including coffee
(Nescafe), Water, other Beverages, Ice cream, Infant foods, performance and healthcare
nutrition, seasonings, frozen and refrigerated foods, confectionery and pet food.
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NESCAFE® CLASSIC
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SWOT ANALYSIS
Swot analysis shows the strengths and powers of the company. We will analyze the
internal and external powers and weaknesses. Mostly some companies have strong internal
structure and some have great outdoor power. NESTLE has a great internal structure. And we are
launching our new brand under that corporate brand. And we can easily locate our product under
that company.
Now, we will discuss some points of the swot analysis of nestle. And draw a complete product
launching structure on the basis of that summary.
FLOW CHART OF SWOT ANALYSIS:
Now, we are discussing all points of swot analysis under separate heads.
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STRENGTHS:
Nestle is the world's largest food and beverage company in terms of sales. Due do
strong brand name our product will gain a wide consumer acceptance from all over the Pakistan.
The biggest strength would be the strong brand name the risk in investing would be reasonable
very low. We will set a complete transparent manufacturing system for customer satisfaction in
terms of hygiene. We will strengthen our product by broad distribution network by increasing the
capacity for innovation which will lead to an improvement in sale growth. We will be organizing
a team which will inspect and observe the accumulation (stock) on daily bases to prevent any
damages occurring and also in order to keep the inventory fresh. We will make sure that we are
not having surprise shortage, weather it is winter or summer no matter what circumstances are.
Further strength would be.
Strengths:
Skilled labor.
Educated staff.
Large number of offerings.
Pre purchase virtual display.
Arrangement of events.
Good background of the company.
Easy to approach outlets.
Physical evidence
Economical
Pure butter in quality
Strong brand name
Weakness:
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The main weakness of our product is the lack of an established good standing. Our
competitors have been around for decades and therefore have a loyal base. The second biggest
weakness would be the lack of capital, establishing such an enormous and gigantic plant there
will be a need of acquiring financial support in terms of loans from the bank. Spending millions
in a strong brand is no guarantee to wealth. It may the safest way to get into the business, but it is
not necessarily the cheapest. Further weakness would be.
Weaknesses:
Small target market.

Lack of awareness among the target market.
Dependency on others (govt. & sponsors) for the arrangement of events.
Communication is week
Opportunities:
The biggest opportunity would be considered geographically. Pakistan is situated in

an area where we have summers most of the time. People love as well as enjoy eating ice-cream
in this season. Due to strong brand name in the market our product has a great potential of
earning profits. To make the product successful we will be utilizing the highest degree of
technology in calculating customers’ satisfaction as well as their feed back. Gaining initial
success the next step would be opening a par lour where people can enjoy all the flavors under
one roof. Further opportunities would be.
Opportunities:
Increasing interest of people

Few and weak competitors
Concentrating on these areas can increase sales
Increase in product line.
Threats:
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The biggest threat to are product is the fierce competition in the local market. Walls by
(unilever) are one of the biggest names in ice cream which not only distribute their products
nation wide but also had a total control on the local market. The second thread that our product
will face would be Shezan, Gourmet and many others small bakeries which have their influence
on the market.
Threats:
Major player may enter target market

Legal and ethical issues.
Market segment growth could attract new entrants.
Economic slow down can reduce demand.
Missing the targeted customers
Allergic reaction
Segments are being shared by competitors
Uncertain conditions will effect the sales (diseases of animals)
Under cutting by competitors.
Competitors
INTRODUCTION OF RESEARCH
In this research we have introduced a new brand ―NESDAIRY‖ and a product under this
brand ―KNIFE & BUTTER‖ which is available in different sizes. During this research I have
interacted with peoples of different cities to conduct a survey that which kind of quality and taste
they like. We collected suggestions from different peoples of some main cities and rural areas.
The reports of surveys are pasted below. After this research I came to know how people
perceives these products on the variables like price, quality, advertisement, satisfaction, taste,
packaging, brand loyalty etc. I also came to know which particular brand of butter is most
preferred by peoples of different age groups. In this research I have surveyed that how frequently
and how much butter they consume, whether they buy small, big or family pack. Trend of
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ongoing changes in their likings has been shown in the report. In this report I have tried to
explain the entire research and facts product wise.
CONSUMER PREFERENCE
All marketing starts with the consumer. So consumer is a very important person to a
marketer. Consumer decides what to purchase, for whom to purchase, why to purchase, from
where to purchase, and how much to purchase. In order to become a successful marketer, he
must know the liking or disliking of the customers. He must also know the time and the quantity
of goods and services, a consumer may purchase, so that he may store the goods or provide the
services according to the likings of the consumers. Gone are the days when the concept of
market was let the buyer’s beware or when the market was mainly the seller’s market. Now the
whole concept of consumer’s sovereignty prevails. The manufacturers produce and the sellers
sell whatever the consumer likes. In this sense, “consumer is the supreme in the market”.
The study of the consumer preference not only focuses on how and why consumers make
buying decision, but also focuses on how and why consumers make choice of the goods they buy
and their evaluation of these goods after use. So for success of any company or product
promotion it is very necessary to depart its concentration towards consumer preference.
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 teach consumers in their
roles as their roles as consumers. They want consumers to learn about 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 the consumer’s needs, but the marketer’s
objectives.
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The scope of my study restricts itself to the analysis of consumer preferences, perception
and consumption about butter products. There are many other brands of butters available but my
study is limited to two major players leaving behind the others. The scope of my study is also
restricts itself to Pakistan only.
OBJECTIVES OF THE STUDY
This project is based on the comparative study consumer behavior towards Nesdairy and
Knife & Butter. And 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.
LIMITATIONS OF THE STUDY
In attempt to make this project authentic and reliable, every possible aspect of the topic was kept
in mind. Nevertheless, despite of fact constraints were at play during the formulation of this
project. The main limitations are as follows:
 Due to limitation of time only few people were selected for the study. So the sample of
consumers was not enough to generalize the findings of the study.
 The main source of data for the study was primary data with the help of self-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 were taken
to avoid the same.
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RESEARCH ANALYSIS
Market Condition:
 Pakistan is a third world country therefore its market is not a stable one. This survey was
done in January 2009 when inflationary conditions in Pakistani market were not that
severe, therefore this report should be viewed in context of the market conditions which
were prevailing in January 2009.
 During the past one decade Pakistani people got rich due to much privatization and
foreign investment, coupled with property and stock exchange boom. Now people have
money to spend and their affordability has increased dramatically. Therefore we launched
a brand NESDAIRY keeping in mind the per capita purchasing power, and set their
prices at a premium since people have trust in nestle therefore Nesdairy will earn good
profit in Pakistan.
“Besides the increase in per capita purchasing power, awareness increased

among people of Pakistan regarding to the health issues. People are now health
conscious which helped Nesdairy to flourish in Pakistan.”
RESEARCH METHODOLOGY
This chapter describes the methodology of the study. This project is based on information
collected from primary sources. After the detailed study, an attempt has been made to present
comprehensive analysis of consumption of Knife & Butter consumed by the people. The data
had been used to cover various aspects like consumption, consumer’s preference and customer’s
satisfaction regarding Knife & Butter.
Survey design:
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The study is a cross sectional study because the data were collected at a single point of
time. For the purpose of present study a related sample of population was selected on the basis of
convenience.
Sample Size and Design:

A sample of 100 people was taken on the basis of convenience. The actual consumers
were contacted on the basis of random sampling.
Research Period:
Research work is only carried for 2 or 3 weeks.
Research Instrument:
This work is carried out through self-administered questionnaires. The questions included
were opening ended, dichotomous and offered multiple choices.
Data Collection:
The data, which is collected for the purpose of study, is divided into 2 bases:
 Primary Source: The primary data comprises information survey of ―Comparative
study of consumer behavior towards Knife & Butter. The data has been collected directly
from respondent with the help of structured questionnaires.
 Secondary Source: The secondary data was collected from internet, References from
Library.
Data Analysis:
The data is analyzed on the basis of suitable tables by using mathematical techniques. The
technique that I have used is bar technique.
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LIKING FOR THE “KNIFE & BUTTER”
Table: 1
Liking for the “Nesdairy” Yes No

Number of Respondents 95 5
Liking For the Knife & Butter"
95
100
Number of Persons
80
60 Yes
40 No
20 5
0
Response
1
35
Chart: 1
From the above analysis of the given sample of 100 respondents it is concluded that out
of 100 people 95 people likes to use Knife & Butter while only 5 people don’t prefer to use
Butter.
DIFFERENT AGE GROUPS
Table: 2
AGE GROUPS 0-10 10-20 20-30 ABOVE 30
NUMBER OF 8% 34% 30% 28%

RESPONDENTS
FACTOR`S GIVING SATISFACTION TO CONSUMERS
Table: 3
FACTORS GRAND TOTAL AVERAGE
RANK
51% 4.81 1
FLAVOR/TASTE
PRICE 10% 3.6 4
QUALITY 6% 3.86 2
PACKAGING 54% 3.56 5
COLOR 25% 3.49 7
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BRAND 48% 3.77 3
IMAGE 34% 3.45 8
SHAPE 42% 3.52 6
According to the above analysis it is concluded that on an average people are most
satisfied with the flavor/taste of a chocolate followed by quality and brand. It is surprising to
know that although people are satisfied with quality but unsatisfied with the quantity.
CONSUMER’S BRAND LOYALTY
Table: 23
BRAND LOYALTY ACTIONS NUMBER OF RESPONDENTS
POSTPONE YOUR PURCHASE 26%
SWITCH OVER TO OTHER BRANDS 24%
GO TO OTHER SHOP FOR SEARCH 45%
OF PREFERED BRAND
Brand Loyalty
Number of consumers
50 45
Postpone Purchase
40
30 26 24 Switch Brand
20
10 Search in other Shop
0
1
Action of Consumers in absence of Prefered Brand
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Chart: 3
According to the above analysis it is concluded that mostly people are loyal to the brand
as in the absence of availability of their preferred brand mostly people like to search for it or they
are ready to postpone their purchase.
REACTION OF CONSUMERS IF NEW BRAND IS INTRODUCED
Table: 24
SHIFT TO NEW BRAND OF THE NUMBER OF RESPONDENTS
PREFERED PRODUCT
NO, NOT AT ALL 35
MAY CONSIDER 27
NO, SHALL NOT 4
CAN’T SAY 29
Reaction of consumers if new brand

is introduced
40 35
Number of Consumers
35 29
30 27 No, Not at all
25 May Consider
20 Shall Not
15 Can't Say
10 4
5
0
1 Reactions
Chart: 4
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According to the above analysis it is concluded that mostly people are addicted to the
same flavor or taste and they don’t want to change it as out of 95 respondents 35 are not ready to
try new brand at any cost.
REASONS FOR NOT SWITCHING OVER TO OTHER BRANDS
All the consumers why they continue to buy the old brand gave various important reasons.
The most important reasons given by the consumers were:
o Taste/Flavor
o Brand
o Image
o Quality
o Packaging
SEARCH FINDINGS
Consumer research:
Consumer research deals with consumer and their problems
and solution to the problems. In this I came to know about the consumers need and
expectation levels regarding products and ascertainable levels of consumer satisfaction.
Product research:
Under product research I came to know about the modification
which consumers wants as to the quality, packing, shape, color, and quantity etc of their
favorite brand.
Pricing research:
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This includes ability to consume, to pay for the product, how
much a person can spend on his/her favorite product. In this I have tried to find out
consumer’s price expectations and reactions.
Advertising research:
Under this I have concluded that whether the
advertisement appeals the consumers or not. This also includes evaluating and selecting
the proper media-mix and measuring advertising effectiveness.
RESEARCH CONCLUSION
A survey of the people has been conducted to know the liking pattern of Knife &
Butter. It is observed that overall people like to use Nesdairy. It is concluded that mostly
people preferred our product due to its taste, quality and image and due to its hard form.
Some people often like to have Butter with good quality and taste so they are going
towards Knife & Butter.
It is thus concluded from the facts collected that mostly people refer to buy big
pack of their favorite Butter, and sometimes some of them go for small pack.
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BRAND DESCRIPTION
NESDAIRY is our brand which is launched under a corporate brand NESTLE. This is the
maximization in product line width of our company.
Brand logo:
Caption statement:
Our band slogan is,
“GOOD FOOD, GOOD LIFE”
KEY TO SUCCESS OF NESDAIRY
Nesdairy has four pillars of strength these are operating as a key to success.
Excellence
innovation and renovation
product availability
communication
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 Meet the nutritional needs of consumers of all age groups – from infancy to old age, from
nutrition to pleasure, through an innovative portfolio of branded food and beverage products
of the highest quality.
 Their proactive innovation and renovation culture is the key to their success in the
marketplace.
 Fully integrated systems (Nestlé Pakistan, suppliers, customers) ensure efficient business
processes.
 Non-strategic activities and products are outsourced or discontinued.
 Their communications to the consumer are relevant, cutting-edge, and adhere to the highest
standards of responsible communication.
 Their result-oriented organizational structure ensures effective communication and
empowered self-management.
Nestle do cares about its employees that is the reason it has been a successful company to
retain brilliant, confident, genius and hardworking employees which is the greatest strength of
nestle that is the people who work for it. Management has skills and experience in a variety of
areas. Trevor Clayton the managing director of nestle Pakistan emphasizes internal growth,
meaning he wants to achieve higher volumes by renovating existing products, and innovating
new products. His explanation of renovation is that ―to just keep pace in the industry, you need
to change at least as fast as consumer expectations.‖ And his explanation of innovation is ―to
maintain a leadership position, you also need to leapfrog, to move faster and go beyond what
consumers will tell you.‖
Nestle tries to take the mentality and customs of individual countries into account, but there are
some general guidelines that are applied everywhere.
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SEGMENTATION
Market segmentation
Dividing a market into smaller groups with distinct needs, characteristics or behaviors
who might require separate products or marketing mixes.
We have selected some groups from whole market. Now we are going to target these customers.
We have divided the customers in different groups according to:
1. Segment size
2. Segment structure attractiveness
3. Company objectives and resources
Segment size:
All the people living in cities and students either they are living in their homes or
in hostels according to our thinking and foresightedness above mentioned people are included in
our segment size. These all people are our potential customers
Segment structure attractiveness
Our segment structure is based on household of cities and students who are living in
hostels are our actual target. We are trying to build and retain customers for our new brand which
we are going to launch in Pakistan. We have lot of support from our old customers who are using
our other products and they will also purchase our knife and butter having brand Nesdairy.
This brand will create values for customers and also get value from customers in return. It
might be in shape of brand loyalty, goodwill and profit. We are taking into account the
requirements of our potential and old customers. We are going to fulfill the requirements of our
customers by launching the knife and butter with brand of Nesdairy.
Company objectives and resources
Our company is serving people through our products in many countries, so our objectives
are to create better relationships with customers, to retain the customers, create opportunities for
the company to make customers. Along with these objectives the main and sole objective is to
earn profit with reasonable margin.
Our company has much more resources as compared to our all competitors in the world.
We can invest money, launch brands and products and advertise our newly launched products
and brands and old brands also.
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We are introducing new technology as we require for new products (knife and butter).
We made the market segments on the following basis:
Density
Age
Gender
Income
Family size
Family life cycle
Occupation
Education
Social classes
Life style
Personality Benefits
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TARGETING
Target Market
A set of buyers sharing common needs or characteristics that the company decides to
serve.
Targeting market
The process of evaluating each market segment’s attractiveness and selecting one or more
segments to enter.
We will target the following customers:
Young boys and girls
Households
Peoples belongs to middle class
Student of colleges and universities
Peoples want a new and healthy butter.
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POSITIONING
In marketing, positioning has come to mean the process by which marketers try to create
an image or identity in the minds of their target market for its product, brand, or organization. It
is the 'relative competitive comparison' their product occupies in a given market as perceived by
the target market.
Positioning process
Generally, the product positioning process involves:
We want to capture the mind of customers.

We have collected information from a sample of customers about their perceptions of
each product on the relevant attributes
We have determine each product's share of mind
We have determine each product's current location in the product space
We have determine the target market's preferred combination of attributes (referred to as
an ideal vector)
Examine the fit between:
o The position of our product
o The position of the ideal vector.
The process is similar for positioning your company's services. Services, however, don't
have the physical attributes of products - that is, we can't feel them or touch them or show nice
product pictures. So you need to ask first your customers and then yourself, what value do clients
get from my services? How are they better off from doing business with me? Also ask: is there a
characteristic that makes my services different?
Write out the value customers derive and the attributes your services offer to create the first
draft of your positioning. Test it on people who don't really know what you do or what you sell,
watch their facial expressions and listen for their response. When they want to know more
because you've piqued their interest and started a conversation, you'll know you're on the right
track.
Product Position:
The way the product is defined by consumers on important attributes .The place the
products occupies in consumers minds relative to competing products.
We are going to launch positioning strategy.
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Through unique attributes
Through competitive advantage Less prices
Effective promotion
Intensive distribution
Quality products
Customers research
Attractive packaging
Knife and Butter Attributes:
Our product is a quality product. It is very delicious that’s why it is its feature. Style of
our product is rectangular shaped with cream color’s for as design is concern its ingredient`s are
natural. Because we extract it from milk.
Core Benefit:
The purpose of our product is nutrition. We are going to launch our product in three
different sizes which can serve our target customers having distinct needs. Knife and butter is
packed in a sophisticated packing. Its expiry date is 30 days after manufacturing.
We hope that this new brand will also get positive response from our customers. Blue band and
Haleeb butter are our competitors in this regard but by adding attractive and different attributes
to this product we can achieve our goals. Our price strategy , place strategy and promotion
strategies are very effective and will differentiate our product from our competitors. Our logo,
caption statement, brand name and color combination are very attractive.
We hope that we will be succeeded in this goal.
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MARKETING MIX
Marketing mix is the combination of elements that you will use to market your
product. There are four elements: Product, Place, Price and Promotion its simple! You
just need to create a product that a particularly group of people want, put it on sale some
place that those same people visit regularly, and price it at a level which matches the
value they feel they get out of it; and do all that at a time they want to buy. Then you've
got it made!
You have gotten a rough idea about the market situation and the possible positioning of
your product. Of course, it's far to be sufficient. Now, you must write your detailed planning. It
means that brainstorming is ended and that you have to go to the specifics in examining and
checking the entire hypothesis you had made in the preceding chapters. You will use the
marketing mix.
There's a lot of truth in this idea. However, a lot of hard work needs to go into finding out
what customers want, and identifying where they do their shopping. Then you need to figure out
how to produce the item at a price that represents value to them, and get it all to come together at
the critical time.
MARKETING TOOL
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The marketing mix and the 4 Ps of marketing are often used as synonyms for each other. In fact,
they are not necessarily the same thing.
"Marketing mix" is a general phrase used to describe the different kinds of choices organizations
have to make in the whole process of bringing a product or service to market. The 4 Ps is one
way - probably the best-known way - of defining the marketing mix, The 4Ps are:
Product (or Service)

Place
Price
Promotion
The marketing mix is a good place to start when you are thinking through your plans for a
product or service, and it helps you avoid these kinds of mistake.
CREATE A MARKETING MIX
PRODUCT PRICE PROMOTION PLACEMENT
Marketing-mix planning
We have developed a strategy; a company must then decide which tactics will be most
effective in achieving strategy goals. Tactical marketing involves creating a marketing mix of
four components—product, price, place, promotion—that fulfils the strategy for the targeted set
of customer needs.
P`S OF MARKETING MIX
There are four p’s of marketing mix. As given below
Product
Price
Place
Promotion
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PRODUCT
Products come in several forms. Consumer products can be categorized as convenience

goods, for which consumers are willing to invest very limited shopping efforts. Thus, it is
essential to have these products readily available and have the brand name well known. Specialty
goods are those that are of interest only to a narrow segment of the population—e.g., drilling
machines. Industrial goods can also be broken down into subgroups, depending on their uses. It
should also be noted that, within the context of marketing decisions, the term product refers to
more than tangible goods—a service can be a product, too.
OUR PRODUCT
Our product is high in providing quality, taste and good health. We are the only one in
local market providing Butter as no one ever does in Pakistan where consumers may choose
from whole market’. A large variety of modes manufactured by a single brand NESTLE.
“Anything that is produced, whether as the result of generation, growth, labor, or

thought, or by the operation of involuntary causes; as, the products of the season, or of the farm;
the products of manufactures; the products of the brain.”
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‖The word product qualifies a marketing concept. A product is more than a person, place
or thing. Nothing is more important to a marketing strategy than the "product concept‖.
Aggressive marketers believe that continuous product development is the most important
of all strategic marketing activities.
BRAND NAME
Our brand name NESDAIRY has a direct relation with food and beverages as the
name comes in mind the person things of nothing but a quality product. The brand name is easy
to read and pronounce at the same time stylish and attractive. And the corporate brand of that has
a great significance in the market.
Features:
Initially our features include services like sending our representatives to the door steps
of interested consumers (target market), answering their concerns, and telling them what we have
for them. And how we can satisfy them in future and remain providing services throughout life.
Quality:
We will assure our customers about providing quality services and make sure that the
inventory we provide are durable, healthy, fresh and long lasting. Our quality of service will help
consumers develop trust in us. We believe in quality and that’s our aim we want to achieve.
Quality products are required in every where in current conditions. Only quality is that feature
that goes throughout and build goodwill in market.
Styling:
Style and catchy designs are the most important aspects of our product. We will help our
consumers feel special and find the product healthful. Our dairy products are of good quality and
health fresheners’.
Variety:
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The variety is our aim we want to achieve. And we believe in variety. Another feature of our
product is variety and flexibility of products provided. We have the availability of large variety
of taste as compared to different brands. Our products are available in different sizes like that.
Single size
Middle size
ACTUAL PRODUCT
We are launching a new product under a new brand name NESDAIRY. Our product
name is ―KNIFE & BUTTER‖. Nestle is the corporate brand of that company and have large
number of customer based services. That it is providing over a long period of time. This is a new
launch of that companies product and we have attain a lot a good views from our market research
that we have made in the different areas of the country.
Your market research data will be able to look more closely at what your market want and then
look at your products to see if they are satisfying your customer's needs. Examine your
packaging design, materials used, size and quantity. By analyzing the market and its
requirements, you will be able to change the product or develop the product in order to match
those requirements of the people you are aiming at.
You also need to remember that your customer's needs are likely to change and therefore your
products should constantly change to reflect each market change, if you ignore these changes
your products will no longer be needed or desired by your target customers. The only way you
will be able to do this is to track your products and track how your customers are still receiving
your products and services, balancing the subtle changes as they occur.
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Our products will include:
Keeping in mind the taste of individuals.

Modifying our products by new innovations every year.
Giving best taste at best affordable prices.
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Selection of appropriate ingredients,
We give desired consumers perception.
Key facts
Vitamin A helps maintain good vision and healthy skin.
Vitamin B1 helps to boost energy in your body
Vitamin B2 provides energy from carbohydrates
Vitamin B6 helps nerves and forms red blood cells
Vitamin D is good for bones and teeth
FEATURES OF “KNIFE & BUTTER”
Attractive Packaging
Brand Structure
Price
Image\positioning
Differentiation
Competition
QUALITY OF “KNIFE & BUTTER”
A good product makes its marketing by itself because it gives benefits to the
customer. We can expect that you have right now a clear idea about the benefits your product
can offer.
The designing
The packaging
The safety
The green
The design:
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It can be a decisive advantage but it changes with fads. For example, a fun board must
offer a good and fashionable design adapted to young people.
The packaging:
Our product is providing a better appearance and a convenient use. In food business,
products often differ only by packaging.
The safety:
According to its packaging it is safe in many ways. It does not concern fun board but it
matters very much for products used by kids.
The green:
Our product provide green environment. A friendly product to environment gets an

advantage among some segments.
Branding strategy of Nesdairy:
Nesdairy brand name presents a message of caring which make it distinctive and
attractive than other companies. Nesdairy brand is ―good food, good life‖. The message of
family protection is enough to get the attraction of customer. The Nesdairy brand name is easy to
understand & translate. It is easy to pronounce and it is also easy to recognize. Another message
in brand name is given to customer to preserve their families from different deceases.
Labeling strategy of Nesdairy:
Nesdairy ―KNIFE & BUTTER‖ label gives all information about our product like
ingredients which are used in it and all instructions regarding product. People can easily
understand what kind of product we are offering. And easily they can afford it.
Product development:
The first marketing-mix element is the product, which refers to the offering or group of
offerings that will be made available to customers. In the case of a physical product, such as a
car, a company will gather information about the features and benefits desired by a target market.
Before assembling a product, the marketer's role is to communicate customer desires to the
engineers who design the product or service. This is in contrast to past practice, when engineers
designed a product based on their own preferences, interests, or expertise and then expected
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marketers to find as many customers as possible to buy this product. Contemporary thinking
calls for products to be designed based on customer input and not solely on engineers' ideas.
Packaging and branding:
a means of distinguishing one firm's products or services from another's and of creating
and maintaining an image that encourages confidence in the quality and performance of
that firm's products or services
PRODUCT LIFE CYCLE

If we look Nesdairy ―KNIFE & BUTTER‖ product life cycle than it easy to judge that it
is at introduction stage. Because Nestle is the market pioneer and at this stage its profit is
negative or low due to low sale and high distribution and promotion expenses.
Other major reason to be at introduction stage is unawareness in rural areas. The people are not
aware to the pure life water that’s why their sale is low. They can brought change in product life
cycle by effective promotion, by formulating new price strategies etc.
Nesdairy
KNIFE & BUTTER
(Product) Introduction growth maturity decline
KNIFE & BUTTER (life-cycle) Phases
Knife & Butter also go through what is known as a life cycle or phase. When exploring
what mix is best suited to your product, you should also consider where in the life-cycle your
products lie:
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Introductory Phase:
If you are releasing a brand new product or service then it will be a baby in the market
and will need to be introduced to your market. How you price, promote and place this into the
market place will need careful consideration.
Growth Phase:
If your product or service has been enjoying being the only one on the market, you may
have noticed that others are also joining in and entering a competitive product or service and this
will have an affect of the healthy sales you might be enjoying at the moment. How you react to
this will have an impact on the survival of your product - Will you drop the price to compete, will
you change the way in which you promote it, will you change the distribution method?
Maturity Phase:
If your product is one of many competing products, then you can consider that your
product is a mature one. If this is the case then you have to take care that interest for your
product is not lost. Maturity of a product is a dangerous time and it could get swallowed up by
your competitors. As with a product in the growth part of the life-cycle - Will you drop the price
to compete, will you change the way in which you promote it, will you change the distribution
method?
Decline Phase:
Perhaps you have noticed that one of your products is losing its appeal; sales or interest
might have dropped. If this is the case, your product may be in decline and if you are not careful
it may die. These parts of the cycle need careful consideration. You might decide, enough is
enough, and remove it from your shelves or you could re-invent it by changing by packaging or
product name. Take a close look at your market research data “Depending which phase you felt
your products were at - introductory, growth, maturity or decline, you would be able to make
further decisions at to what price to charge, where to sell your product.”
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The Marketing Mix: Product
New product development:
New product development tends to happen in stages. Although firms often go back and forth
between these idealized stages, the following sequence is illustrative of the development of a
new product:
New product strategy development. Different firms will have different strategies on
how to approach new products. Some firms have stockholders who want to minimize risk
and avoid investing in too many new innovations. Some firms can only survive if they
innovate frequently and have stockholders who are willing to take this risk. For example,
Hewlett-Packard has to constantly invent new products since competitors learn to work
around its patents and will be able to manufacture the products at a lower cost.
Idea generation. Firms solicit ideas as to new products it can make. Ideas might come
from customers, employees, consultants, or engineers. Many firms receive a large
number of ideas each year and can only invest in some of them.
Screening and evaluation: Some products that after some analysis are clearly not
feasible or are not consistent with the core competencies of the firm are eliminated.
Business analysis. Ideas are now exposed to more rigorous analysis. Profit projections,
risks, market size, and competitive response are considered. If promising, market
research may be done.
Development: The product is designed and manufacturing facilities are planned.
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Market testing: Frequently, firms will try to ―test‖ a product in one region to see if it
will sell in reality before it is released nationally and internationally. There is a lesser risk
if the firm only commits money to advertising and other marketing efforts in one region.
Retailers will also be more receptive in other parts of the country and world if it has been
demonstrated that the product sold well in one region. The firm may also experiment with
different prices for the product.
Commercialization: Facilities to manufacture the product on a larger scale are now put
into operation and the firm starts a national marketing campaign and distribution effort.
DIFFUSION OF INNOVATION:
The diffusion of innovation refers to the tendency of new products, practices, or ideas to spread
among people.
Usually, when new products or ideas come about, they are initially only adopted by a small
group of people. Later, many innovations spread to other people. The bell shaped curve
frequently illustrates the rate of adoption of a new product. Cumulative adoptions are reflected
by the S-shaped curve.
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The saturation point is the maximum proportion of consumers likely to adopt a product.
In the case of refrigerators in the U.S., the saturation level is nearly one hundred percent of
households. The figure will almost certainly be well below that for video games that, even when
spread out to a large part of the population, will be of interest to far from everyone.
Some cultures tend to adopt new products more quickly than others, based on several factors:
Modernity: The extent to which the culture is receptive to new things. In some countries,
such as Britain and Saudi Arabia, tradition is greatly valued—thus, new products often
don’t fare too well. The United States, in contrast, tends to value progress.
Homophily: The more similar to each other that members of a culture are, the more likely
an innovation is to spread—people are more likely to imitate similar than different
models. The two most rapidly adopting countries in the World are the U.S. and Japan.
While the U.S. interestingly scores very low, Japan scores high.
Physical distance: The greater the distance between people, the less likely innovation is
to spread.
Opinion leadership: The more opinion leaders are valued and respected,
the more likely an innovation is to spread. The style of opinion leaders moderates this
influence, however. In less innovative countries, opinion leaders tend to be more
conservative, i.e., to reflect the local norms of resistance.
It should be noted that innovation is not always an unqualifiedly good thing. Some innovations,
such as infant formula adopted in developing countries, may do more harm than good.
Individuals may also become dependent on the innovations. For example, travel agents who get
used to booking online may be unable to process manual reservations.
New Product / Service Development Process

Life Cycle Management
Market response analysis
Competitive monitoring & defense
Innovation at maturity
Introduction
Launch planning
Tracking the launch
Testing
Advertising & product testing
Pretest & pre-launch forecasting
Test marketing
Design
Customer needs Sales forecast
Product positioning Engineering
Segmentation Marketing mix
Opportunity Identification
Market definition
Reposition
Idea generation
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PRICING
As we have explained in the product part of marketing mix that we have launched a new
brand ―NESDAIRY‖ under a corporate brand nestle. And our product Nesdairy ―KNIFE &
BUTTER‖ Our product is new in the market and we have to set price according to our
competitor’s price. We have to allocate our fixed cost and variable cost. And mostly our product
should gain customers satisfaction and win their trust. And peoples can afford our product easily.
Pricing is one of the most important elements of the marketing mix, as it is the only mix, which
generates a turnover for the organization. The remaining 3p’s are the variable cost for the
organization. It gives way to and designs a product; it costs to distribute a product and costs to
promote it. Price must support these elements of the mix. Pricing is difficult and must reflect
supply and demand relationship. Pricing a product too high or too low could mean a loss of
sales for the organization. Pricing should take into account the following factors:
Fixed and variable costs.

Competition
Company objectives
Proposed positioning strategies.
Target group and willingness to pay.
Objectives of price fixation:
The main strategy that bases the launch of a product is pricing strategy.
Our pricing is done considering
 Our marketing objectives.

 The economic conditions of our target market
 Pricing of our competitors.
 The nature of our business.
 It can be status oriented.
These are following objectives of nestle pure life regarding price fixation:
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 Profit Earning:
Profit earning is the main objective of every company but in case of Nesdairy their profit
margin is low. Only a few amount of profit is collected from KNIFE & BUTTER at start.
 Customer satisfaction:
In Nesdairy price is not fixed by keeping in mind profit motive, only customer satisfaction is
kept in mind while fixing the prices.
 Strategies for fixing the price:
In Nesdairy prices are set on cost basis as given below:
 Price = Cost + Profit
Break even or Target price:
 Per Unit Price = variable cost + fixed cost / units of sale
Pricing Strategies
An organization can adopt a number of pricing strategies. The pricing strategies are based
much on what objectives the company has set itself to achieve. We have settled a plan to
introduce our product with higher price in the market. We are launching our product in two sizes.
One is of 100g and other is of 250g and our price complies with the competitor’s price. We have
launched our product with a higher price to gain a competitive edge
We have used two pricing strategies,
Penetration pricing
Cost plus pricing
Penetration pricing:
Penetration pricing involves the setting of lower, rather than higher prices in order to
achieve a large, if not dominant market share.
Our strategy is to sell more and more quality products. According to our marketing
strategy we have settled higher prices in the start but then reduce our prices to gain more and
more customers. This strategy is most often used businesses wishing to enter a new market or
build on a relatively small market share.
COST PLUS PRICING:

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We have used cost plus pricing to calculate our cost price. That’s why we are able to
efficiently calculate our cost.
The advantages of using cost plus pricing are:
Easy to calculate
Price increases can be justified when costs rise
Price stability may arise if competitors take the same approach (and if they have similar
costs)
Pricing decisions can be made at a relatively junior level in a business based on formulas
We fix prices according to these factors.
Nature of the market – we have first studied the nature of customer by completing
survey in the market. That’s why we have successfully marked our price with the needs
of our customers.
Bulk discounts – a discount will also be given to the customers to fulfill their needs.
Pricing strategy – we have initially adopted penetration pricing strategy to launch our
product with higher price from our competitors.
Stage of the product in its life cycle – after launching we have changed our pricing
strategy and transform our product to create higher demand. Products at the earlier stages
of the life cycle may need a lower mark-up percentage to help establish demand.
NESDAIRY KNIFE & BUTTER PRICING:
The total per unit price for the 250mg pack that we will offer is as follows:
o Cost of Knife & Butter Rs.50
o Electricity Rs.7
o Factory over head Rs.6
o Miscellaneous Rs.4
o Retailer margin Rs.3
o Profit Rs.10
Total price Rs.80
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In accordance to our strategy we have decided to offer the product to customers at the
price of Rs.80. The price is very much compatible and the offer is substantial enough to attract
a large percentage of market in a very quick time.
SIZE PRICE
250g Rs.80
100g Rs.35
NESDAIRY PRICING STRATEGY
Launching Strategy
The pricing NESDAIRY adopted at the time of launch in penetrating pricing strategy.
According to that strategy we want to create goodwill and better impression in the market. We
want to show the strength of our quality and good impression which is supported by our greater
promotional campaigns. That was based on good quality and we have satisfied our customers by
distributing free samples. Our Customers know about the quality of our product. That’s why we
have adopted that strategy.
Growth Strategy
Then we have changed our strategy from penetrating price to skimming price strategy by
Lowering its price to gain more and more customers by lowering the profit of the business. At
this scale more and more customers are attracted and profit is minimized. By that process ours
cost should also be lowered due to large scale production.
REASONABLE PRICE
Table: 5
PRICE OF KNIFE & BUTTER NUMBER OF RESPONDENTS
BELOW 5 6
5-10 23
10-20 51
20-30 18
ABOVE 30 24
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PLACEMENT
Placement refers to how the product gets to the customer; for example, point of sale
placement or retailing. This fourth P has also sometimes been called Place, referring to the
channel by which a product or services is sold (e.g. online vs. retail), which geographic region or
industry, to which segment (young adults, families, business people), etc. also referring to how
the environment in which the product is sold in can affect sales.
Place simply refers to how you will sell your products to your customers. Depending on what it
is you are selling will directly influence how you distribute it, and it affects mainly those
businesses that are in production. If for example you own a small retail outlet or offer a service
to your local community then you are at the end of the distribution chain so and will be directly
supplying a variety of products directly to the customer.
Company network
Nestle is now the world's largest food company. It is present on all five continents, has an
annual turnover of 74.7 billion Swiss francs, runs 509 factories in 83 countries and employs
about 231,000 people the world over. The Company owes its current status to the pioneering
spirit inherited from its founders which continues to inspire it, to its concern with quality and to
its constant search for new ways of satisfying man's nutritional needs. Wherever possible, it sets
up factories locally, employs personnel from the country concerned and relies on indigenous raw
materials. Its agricultural services provide assistance to improve the quality and yield of the raw
materials it uses. Much attention is devoted to professional training and to the integration of the
Company in its economic and social environment
Nesdairy network in Pakistan:
Our Headquarter is in Lahore, the company operates five production factories. Three of
its factories in Sargodha, Seikhupura and Kbirwala are multi product factories. One factory in
Islamabad and two in Karachi are working. Through its effective marketing and a vast sales and
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distribution network thought out the country, it ensures that its products are made available to
consumers whenever, wherever and however
Nesdairy value delivery network:
The Nesdairy Group is in principle not directly involved in primary production of raw
materials and other food ingredients. In general nestle use locally available raw materials and
purchase them either directly from producers or through existing trade channels. In Pakistan,
Nesdairy’s strategy has been to acquire local companies in order to form a group of autonomous
regional managers who know more about the culture of the local markets than other countries.
Nesdairy’s strong:
Cash flow and comfortable debt-equity ratio leave it with ample muscle for takeovers.
Recently, Nesdairy acquired dairy food,
Their focus will be primarily on expanding sales in the Pakistani market, and in time will look to
export Indonesian food products to other countries.
Nesdairy has employed a wide-area strategy for Asia that involves producing different products
in each country to supply the region with a given product from one country. For example,
Nesdairy produces soy milk in Pakistan, all for regional distribution. Milk plant at Kabirwala is
the Nesdairy’s world largest milk processing plant. Nesdairy pays the local milkmen for the
continuous supply of milk to its plant, since Pakistan is the fifth largest milk producing country.
NESDAIRY CHANNEL OF DISTRIBUTION

Nesdairy is making full efforts to supply its product to ultimate consumers. For this
purpose the company uses the conventional marketing channels of distribution to supply the
product. In this method company supply the product to whole seller who responds it to retailers
who supply to ultimate user.
It Refers to how an organization will distribute the product or service they are offering to
the end user. The organization must distribute the product to the user at the right place at the
right time. Efficient and effective distribution is important if the organization is to meet its
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overall marketing objectives. If organization underestimate demand and customers cannot
purchase products because of it profitability will be affected.
Nesdairy`s channel of distribution:
NESDAIRY uses two types of channel of distribution. Indirect distribution involves

distributing your product by the use of an intermediary. Direct distribution involves distributing
direct from a manufacturer to the consumer. Clearly direct distribution gives a manufacturer
complete control over their product.
Above indirect distribution (left) and direct distribution (right).
NESDAIRY DISTRIBUTION NETWORK

1. Direct selling
Direct selling involves selling directly to your customer; retailing, door-to-door, mail order and
ecommerce all directly sell to customers. The advantage of deciding to directly sell would mean
you are in direct contact will your customers and can easily detect the subtle changes which are
occurring and adapt to the changes; i.e. demand for price changes or overall demand for your
products. You also have complete control over your product range, how it is sold and at what
price.
However, direct sales can come at a price; you will need storage facilities or retail premises to
sell your products directly. Shopping carts on the internet required a degree of Internet
knowledge to pull it off and building consumer confidence can prove a tricky business.
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DIRECT TO CONSUMER:
If you don't want the expense of opening and running your own retail outlet to sell to your
customers, then you might consider selling to existing retail outlets. This would obviously save
your company a lot of money setting up a variety of retails outlets to cover areas regionally or
nationally.
However, the administration behind running a system like this would be considerable. Firstly
you would have to have a sales teams to consult with the retailers on new products, price and
promotion. You would also have to have a method of distributing to many small outlets in which
ever region of the country you are selling to: this would cost a small business quite a lot of
money and effort. The financial side also needs to be considered as you will have to administer a
number of small accounts at the same time.
Distribution Strategies:
Depending on the type of product being distributed there are three common distribution
strategies available:
1. Intensive distribution:
We use it to distribute low priced or impulse purchase products eg. chocolates,

soft drinks.
2. Exclusive distribution:
We involve limiting distribution to a single outlet. The product is usually highly

priced, and requires the intermediary to place much detail in its sell. An example of
would be the sale of vehicles through exclusive dealers.
68
3. Selective Distribution:
A small number of retail outlets are chosen to distribute the product. Selective
distribution is common with products such as computers, televisions household
appliances, where consumers are willing to shop around and where manufacturers want a
large geographical spread.
NESDAIRY FACTORIES:
SARGODHA
124, A PAF University road Sargodha, Punjab, Pakistan
Phone (048-3210000)
Sheikhupura
29th Kilometer, Lahore - Sheikhupura Road Sheikhupura, Punjab, Pakistan
Phone (042-6369321-6)
Islamabad
AVA® water factory in Islamabad
PROMOTION
It is not enough for a business to have good products sold at attractive prices. To generate
sales and profits, the benefits of products have to be communicated to customers. In marketing,
this is commonly known as "promotion".
Promotion is a form of corporate communication that uses various methods to reach a targeted
audience with a certain message in order to achieve specific organizational objectives. Nearly all
69
organizations, whether for-profit or not-for-profit, in all types of industries, must engage in some
form of promotion. Such efforts may range from multinational firms spending large sums on
securing high-profile celebrities to serve as corporate spokespersons to the owner of a one-
person enterprise passing out business cards at a local businessperson’s meeting.
The fourth part of the marketing mix refers to process of informing your customers of your
company's products.
To make your customers aware that your products exist, there are a number of methods you may
choose to use, they include:
Media Advertising (television, magazines, Internet, radio)

Personal selling (involving a sales person)
Non-personal communication (persuasion advertising-competitions, free samples)
Other promotional types include public relation exercises and free publicity.
Promotion needs to be carefully planned, and it is usual to decide on a new promotional plan
each year. There should be one main objective to the promotion campaign and that particular
emphasis should be projected during a certain time to a certain market segment.
Promotion Mix:
Promotion is all about companies communicating with customers.
A business' total marketing communications programme is called the "promotional mix" and
consists of a blend of advertising, personal selling, sales promotion and public relations tools. In
this revision note, we describe the four key elements of the promotional mix in more detail.
A business' total marketing communications programme is called the "promotional mix" and
consists of a blend of advertising, personal selling, sales promotion and public relations tools. It
is helpful to define the four main elements of the promotional mix before considering their
strengths and limitations.
Promotional strategies
1. Advertising
2. Personal selling & sales force
3. Sales promotions
4. Public relations
5. publicity
6. Sample`s distribution
70
7. Communication with consumer
8. Getting connected with consumer
9. Promotional campaigns
10. Consumer services
11. Creating shared value
12. Welfare projects
13. Prioritize
14. Slogans or mottos
15. Nesdairy consumer services
(1) Advertising
Advertisement is a tool to introduce the product in the market. To increase sales and
build an image in the mind of consumer company advertise their product in different ways, as for
as Nesdairy pure life is concerned company use:
Any paid form of non-personal communication of ideas or products in the "prime media": i.e.
television, newspapers, magazines, billboard posters, radio, cinema etc. Advertising is intended
to persuade and to inform. Advertising is any paid form of non-personal mass communication
through various media to present and promote product, services and ideas etc. by an identified
sponsor
The main forms of advertising are:
Television
Radio
Newspapers and magazines
Travel trade press
Videos
Exhibitions and trade fairs
Internet
Bill boards
Nesdairy advertising strategies
Nesdairy launched “KNIFE & BUTTER” product with aberrant marketing strategies
and tactics. Our product is new concept in our society like with so extensive marketing the
products brought this saying into life i.e., vini vici vidi (they came, they saw and they
71
conquered). It conducted puppet shows in schools as well as on roads creating consumer
awareness as well as brand preference. Such marketing tactics were unknown (or sparingly seen)
before in Pakistan. Nesdairy increasing sales is attributed to innovative strategies and a sound
distribution network that has proven to be par excellence.
(2) Personal Selling
Communicating with the buyers of a product the intention of making a sale. The personal
selling may focus initially on developing a relationship with the potential buyer, but will always
ultimately end with an attempt to "close the sale".
(3) Sales Promotion

Providing incentives to customers or to the distribution channel to stimulate demand for
a product. Sales promotion is a marketing discipline that utilizes a variety of incentives
techniques to structure sales – related programs targeted to customers, trade, and or sales levels
that generate a specific, measurable action or response for a product or service.
Sales promotions for example includes free samples, discount, rebates, coupons, contents and
sweepstakes, premiums, scratch cards, exchange offers, early bird prizes, etc.
(4) Public relations
Public relations is a broad set of communication activities employed to create and maintain
favorable relationship with employees, shareholders, suppliers, media, educators, potential
investors, financial institutions, government agencies and officials and society in general.
What is good for you is good for us!
Consumer Relationship Marketing lies at the heart of Nesdairy Consumer services. We strive to
build a long-term, sustainable relationship of trust and loyalty.
(5) Publicity
72
The communication of a product, brand or business by placing information about it in the
media without paying for the time or media space directly, otherwise known as "public relations"
or PR.
(6) Sample distribution
We have launched a totally different advertisement technique. We have distributed free

samples of “KNIFE & BUTTER” in all the areas of our segmented market. That’s why we are
more successful in promoting our product.
(7) Communication with consumers
All representation including text, sound, and visual, should accurately represent the product,
including taste, size, and content.
Nutrient content information, including fortification and nutrition claims, must be made in a way
that accurately reflects the nutrition composition of the product, and comply with applicable
legislation and regulations. Specific benefit claims/propositions on packaging must reflect local
legislation.
(8) Getting connected with consumers
Direct contact with consumers is at the heart of our vision. For many people around the country,
our field staff is the face of Nesdairy. These dedicated field staff invite consumers, mostly
homemakers, to Nestlé activities.
We invite our guests to learn more about Nesdairy and its philosophy and brief them about our
brands. We try to give them vital information about health and wellness, to help their families
live a better lifestyle.
(9) Promotional campaign
Our promotion campaign will start with selling free samples to customers and visiting home to
home services.
73
(10) Consumer Service
Our consumer services is to locate city peoples and living in rural areas. And satisfy them in
every way. Satisfy them about the quality of the product. Satisfy them in more communicative
way.
In addition to the above principles for all consumers (including children), Nesdairy has
developed the following principles for communication specifically aimed at children. (By
―children‖ in general we mean those less than 12 years, but definitions vary from country to
country). Nesdairy must at all times be diligent in applying these principles, and use common
sense and good judgment to interpret the quality
(11) Creating Shared Value
We are creating shared values by giving good health and satisfaction to our customers.
And they are more benefited at lower prices.
(12) Welfare projects
Nesdairy Pakistan is involved in a wide range of programmes and projects intended to

improve the lives of underprivileged Pakistanis.
Our efforts are focused on:
Nutrition Programme for Mothers & Children

Financial Support
Well and Good health Projects
Help Centre for Farmers
School Rehabilitation and Education Advancement
Research & Development Initiatives
(13) Priority
74
Our priority is the customer satisfaction and creating greater goodwill among our customers.
Good life, good health is our main slogan. And we will work on more and more customer
satisfaction.
(14) Slogans & Motos
We will gain more satisfaction by working on these logos and words and maintaining our brand
equity and maintain goodwill among customers.
Our slogan is that
“GOOD FOOD, GOOD LIFE”
“ACHI SEHAT KA KHAZANA, NESDAIRY KA

BUTTER HI KHANA”
(15) Nesdairy consumer services
Nesdairy Consumer Services is the main interface between you and the company, and we
make every effort to ensure that your voice is heard. After all, it's your satisfaction that really
counts. We want to build a long-term relationship of trust and loyalty with you.
75
CONCLUSION
We have concluded from our whole work that a complete research make the product launch
successfully. Our product launch has made
76

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Marketing New Product Launch

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In The Name of ALLAH The Most Beneficial, The Most Merciful.

AMMARA SAMREEN Sir Faheem Athar Haqqani

We have int roduced our product aft er a co mplet e research o f market we

“Our main focus is to satisfy our customers”

“Nestle is dedicated to providing the best foods to people

VISION AND STRATEGY

2003 and Now

Henri obtained a 15-year French patent for his logo in 1868.

In 1966 the design was simplified.

FLOW CHART OF SWOT ANALYSIS:

Small target market.

The biggest opportunity would be considered geographically. Pakistan is situated in

Increasing interest of people

Major player may enter target market

SCOPE OF THE STUDY

OBJECTIVES OF THE STUDY

LIMITATIONS OF THE STUDY

“Besides the increase in per capita purchasing power, awareness increased

Sample Size and Design:

Liking for the “Nesdairy” Yes No

Liking For the Knife & Butter"

DIFFERENT AGE GROUPS

NUMBER OF 8% 34% 30% 28%

FACTOR`S GIVING SATISFACTION TO CONSUMERS

PACKAGING 54% 3.56 5

COLOR 25% 3.49 7

IMAGE 34% 3.45 8

SHAPE 42% 3.52 6

CONSUMER’S BRAND LOYALTY

REACTION OF CONSUMERS IF NEW BRAND IS INTRODUCED

Reaction of consumers if new brand

REASONS FOR NOT SWITCHING OVER TO OTHER BRANDS

Our band slogan is,

“GOOD FOOD, GOOD LIFE”

“ACHI SEHAT KA KHAZANA, NESDAIRY KA BUTTER HI KHANA”

KEY TO SUCCESS OF NESDAIRY

Segment structure attractiveness

Company objectives and resources

We made the market segments on the following basis:

Family life cycle

We will target the following customers:

Young boys and girls

Peoples belongs to middle class

Student of colleges and universities

Peoples want a new and healthy butter.

Generally, the product positioning process involves:

We want to capture the mind of customers.

We are going to launch positioning strategy.

Knife and Butter Attributes:

We hope that we will be succeeded in this goal.

Product (or Service)

CREATE A MARKETING MIX

PRODUCT PRICE PROMOTION PLACEMENT

P`S OF MARKETING MIX

There are four p’s of marketing mix. As given below

Products come in several forms. Consumer products can be categorized as convenience

“Anything that is produced, whether as the result of generation, growth, labor, or

Keeping in mind the taste of individuals.

FEATURES OF “KNIFE & BUTTER”

QUALITY OF “KNIFE & BUTTER”

Our product provide green environment. A friendly product to environment gets an

Branding strategy of Nesdairy:

Labeling strategy of Nesdairy:

Packaging and branding:

PRODUCT LIFE CYCLE

KNIFE & BUTTER

(Product) Introduction growth maturity decline