RE-LAUNCH OF NESTLE LIMO AND MALTA

RE-LAUNCH OF NESTLE LIMO AND MALTA

A FINAL PROJECT OF MARKETING MANAGEMENT SUBMITTED BY: Mohammad Tariq Wishal Alias Rakesh 13555 13352

Submitted at Iqra University karachi SUBMITTED ON AUGUST 10, 2011

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RE-LAUNCH OF NESTLE LIMO AND MALTA

Acknowledgement

First of all, we would like to thank Almighty Allah for blessing us with the courage, strength, and ability with which we were able to complete this report successfully.

Furthermore, we would like to extend our special thanks and appreciation our course instructor, Ms. Ayesha Aman for her constant guidance and encouragement throughout the semester, and for making this report and incredible learning experience.

We have benefited a great deal while searching for the material and making the report and hope that people will also benefit from it.

Letter of Transmittal

August 10, 2011 Ms. Ayesha Aman Course instructor Iqra University, Karachi

Respected Madam, We hereby present our project report Re-launch of Nestl Limo and Malta. This report identifies the Background, Marketing environment, SWOT analysis, Re launch strategy, Target market of the product. This Information has been collected through survey and books from library, all material used in the report has been acknowledged properly. Secondary data used in introduction, history and past image of brand, recommendations, strategy and swot analysis were made by us. It was a truly difficult task but we have tried to do our best to make this report after conducting thorough research, which involved much help from the internet, books and survey, which provided us with tremendous amount of information. This report has given us a great opportunity to add to our knowledge and learning. We hope that this report will be good enough to come up to your level of expectation and requirement, and will be helpful to the society in general.

We are very thankful to you, for guiding us at all levels and being a very kind and patient teacher; and helping us in all the endeavors and difficulties that came across.

Sincerely, Bhavna Advani Mohammad Tariq Visri Wishal

Alias Rakesh

RE-LAUNCH OF NESTLE LIMO AND MALTA

Table of Contents
RE-LAUNCH OF NESTLE LIMO AND MALTA .........................................................................1 SYNOPSIS .....................................................................6 COMPANY HISTORY AND BACK GROUND ..............7 PREVIOUS MARKETING MIX ...................................10 NEW MARKETING MIX ............................................11 PMG MATRIX ............................................................14 SWOT ANALYIS .........................................................16 RECOMMENDATIONS..............................................18 CONCLUSION ............................................................19

SYNOPSIS
This report was made with the idea to re-launch the infamous brand Nestl Limo and Malta, The research draws attention to why the brand failed, what does the market lacks, how the dynamic market shifts how price and taste are the two major factors in instant drinks industry, as the product was failed because of too many competitors and less advertisement was done the design on the brand was un attractive the cost didnt reflect the organization. Re-designing the whole brand image of the drink was the recommendation with added improvements as the taste of the product was similar to competitors it was that X-factor which led the brand go down the drain, the main focus is promotional activities and sales will then follow. Many strategies are suggested of how to use the price penetration to enter the market and grab market share. This report will give a complete over view that how, when and where the product should be launched.

RE-LAUNCH OF NESTLE LIMO AND MALTA

COMPANY HISTORY AND BACK GROUND Nestl Introduction

Nestl with headquarters in Vevey, Switzerland was founded in 1866 by Henri Nestl and is today the world's biggest food and beverage company. The Company's strategy is guided by several fundamental principles. Nestl's existing products grow through innovation and renovation while maintaining a balance in geographic activities and product lines. The company succeeded in achieving sustainable profitable growth during the year under the view driven by successful marketing and sales strategies and focus on key initiatives. Consumer confidence in the companys brand has further strengthened and the trade remains confident as ever in doing business with it. Innovation and renovation remained the key to development of new products. In the shed of Nestl 247,000 people are working in almost every country in the world. From which almost 8,000 employees are working in Pakistan. Headquarters in Lahore, the company operates five production facilities. Two of its factories in Sheikhupura and Kabirwala and multi product factories. One factory in Islamabad and two in Karachi produce bottled water. Through its effective marketing and a vast sales and distribution network thought out the country, it ensures that its products are made available to consumers whenever, wherever and however. Nestl company is registered in Pakistan under the company ordinance 1984. As its a public company but still not registered in any Stock Exchange in PAKISTAN Over all company market share is 67%. Nestl share as compared to nur pur,Haleeb and other are moves around 20to 30%.Total turnover:- 13.5 Billion Rupees MISSION Build branded food business to improve quality of life by offering tasty, affordable and highly nutritional product to our consumer. While maximizing stakeholder value VISION The strategic priorities of Nestl milkpak are focuses on delivering shareholder value through the achievement of sustainable, capital efficient and profitable long term growth.
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Improvements in profitability will be achieved while respecting quality and safety standards at all times. In line with this objective, we envision Nestl milkpak to grow in the shortest possible time into the number one food company in Pakistan with unique ability to meet the needs of consumers of every age group- from infancy to old age, for nutrition and pleasure, through development of a large variety of food categories of the highest quality. We envision the company to develop an extremely motivated and professionally trained Innovation and renovation. We aspire, as a respected corporate citizen, to continue playing a significant role in the social and environmental sectors of the country. Most innovative and fastest growing food company offering Products enjoyed in Every home every day GOALS 1. Nestl's business objective is to manufacture and market the Company's products in such a way as to create value that can be sustained over the long term for shareholders, employees, consumers, and business partners. 2. Nestl does not favor short-term profit at the expense of successful long-term business development. 3. Nestl recognizes that its consumers have a sincere and legitimate interest in the behavior, beliefs and actions of the Company behind brands in which they place their trust and that without its consumers the Company would not exist. 4. Nestl believes that, as a general rule, legislation is the most effective safeguard of responsible conduct, although in certain areas, additional guidance to staff in the form of voluntary business principles is beneficial in order to ensure that the highest standards are met throughout the organization. 5. Nestl is conscious of the fact that the success of a corporation is a reflection of the professionalism, conduct and the responsible attitude of its management and employees. Therefore recruitment of the right people and ongoing training and development are crucial.

RE-LAUNCH OF NESTLE LIMO AND MALTA

Nestl Pakistan Nestl Pakistan Limited is a subsidiary of Nestl S.A based in Switzerland, Nestle Pakistan deals currently in Manufacturing, Processing, and sale of these products

Milk Dairy & Chilled Dairy: 1. Milkpak 2. Nesvita 3. Nido 4. Neslac 5. Everyday 6. Dahi 7. Fruit Yoghurt 8. Raita 9. Milkpak Cream

Beverages: 1. 2. 3. 4. Nescafe Nesquik Milo Fruita Vitals

Bottled Water: 1. 2. Pure Life AVA

Baby Food: 10. Creation Food: 1. Maggi Noodles Breakfast Cereals: 1. Chocolate & Confectionary: 1. 2. 3. Kitkat Kitkat Chunky Polo 2. 3. 4. Cornflakes Honey gold Flakes Koko Krunch Milo 1. Cerelac

PREVIOUS MARKETING MIX

PRODUCT INTRODUCTION OF LEMO & MALTA

Limo/Malta is the product of Nestle, Which was launched in July 2005. PRICE Price was charged as follows Sachet Jar Rs.5 Rs. 160

Promotion

Company planned for the following promotional activities 1. 2. 3. 4. ATL on major billboards, limited time on T.V and selective channels etc. BTL massive use of Point-of-sale (POS) material. Which include posters, banners, buntings, mobiles, wobblers, shelf talkers etc. Powder was sampled to create awareness. Gift Scheme was introduced on redemption of empty packets.

Placement Distribution was restricted to big cities at selected retailers. However nestles distribution structure was followed that Is company to distributor to wholesaler to retailers.

Company Distributors Wholesalers Retailer Consumers

RE-LAUNCH OF NESTLE LIMO AND MALTA

NEW MARKETING MIX

Product Introduction In Pakistan generally hot weather, instant drinks are consumed in water to provide refreshment from sweltering heat of the sun. Nestle Pakistan is relaunching nestle Limo & Malta with different name with many flavors,SKUs and additional energizing components of glucose and vitamin-D and sugar free version, that are easy to prepare for everyone such as, PRODUCT NEW NAME: NESTLE DRINK Product Flavors Nestle Lemonade Nestle Orange Nestle Pineapple Nestle Strawberry Nestle Mango Nestle Blueberry SKUs These SKUs are available in all flavors. Sachet of 25gms
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Pouch of 150 gms Pouch of 250 gms Jar of 250 gms Jar of 500 gms

Sugar free version We also make a sugar-free version of Tang, containing aspartame, which comes in various packages and in flavors such as Lemon, Peach, Orange, Raspberry, and Cherry

Product Packaging Good design contributes to product usefulness. Another way to add value is through distinctive product style and design. A sensational style may grab attention and produce pleasing aesthetics. As people are becoming more and more health conscious day by day, nestle instant drinks of all flavors are packed in sun protective pouches and sachets that are costly for the firm because customer satisfaction and quality transfer is the duty of Nestle Pakistan.

PRICE
Price is the sum of all values that consumers exchange for the benefits of having or using the product or service of the specific company. We offer competitive prices, our price list is given below: Sachet of 25gms Pouch of 150 gms Pouch of 250 gms Jar of 250 gms Jar of 500 gms Rs. 7 Rs. 30 Rs. 80 Rs. 90 Rs. 170

RE-LAUNCH OF NESTLE LIMO AND MALTA

PROMOTION
Promotion is one of the most important factors of marketing; it is done to affect the consumer behavior in order to achieve sales and increase product image. In promotion the major task is tomake consumers aware of the product and to attract consumer towards the product by highlighting the advantages of the product. The promotional strategies for nestle instant drinks would consist of the following

sources;
PROMOTION ACTIVITY DURATION

Launch an ad campaign on billboards and magazines in various areas of major cities and magazine. Heavy advertising on TV, newspapers and magazines Sponsor a highly prestigious chain of events or concerts. Prize contests will be held in Karachi , Islamabad, quetta, Lahore and peshawar and people who win will get prizes (such as one bundle of sachet, one set of jar of 250mg etc) Reduce number of billboards, television and magazines advertisements. Continue Advertising including both:

2 weeks

4 weeks 3 weeks During Ramzan

December March (2012)

ATL on major billboards, limited time on T.V and selective channels etc.
BTL at point of sale (pos)

PLACEMENT We shall use Nestles existing distribution channel. Which is as follows:

Company
Our distribution strategies would include: We shall offer attractive offers to our whole distribution channel to distribute it and to work on our push strategy. Retail coverage all the major cities Major accounts of super markets to be served

Distributors Wholesalers Retailer

Supply chain should be simple and should be direct from manufacturer to wholesaler to retailer
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Consumers

 If product is successful after a year of launch more cities will be covered.

PMG MATRIX

Product Development Our re-launch strategy is based on product development. Our target market is the same; however we have introduced a new product with name Nestle Drink with additional feature of glucose and vitamin-D, as well as Nestle Drinks sugar free

RE-LAUNCH OF NESTLE LIMO AND MALTA

BCG MATRIX

Previous BCG Matrix Nestle limo and Nestle limo and malta proved as DOG status at the BCG matrix. They had lowest market share accompanied with lowest market growth. This product suffered losses. Ultimately the manufacturing of the product was stopped. Current BCG matrix We expect our product initially at QUESTION MARK STATUS at BCG matrix. We are confident for high market growth, because the demand for instant drinks is still increasing. However, initially we expect low market share, because our direct competitors have captured large amount of market share.

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SWOT ANALYIS
The SWOT analysis of Nestle Drink (formerly Nestl Limo and malta) has been discussed below: Strengths: Previous strength
1. The only Nestl Pakistan is awarded with the following Certificates:

a. HACCP (in process safety controls)

ISO 9001-2000 (better quality)

b. ISO 14000 (environment friendly operations)

2. Excellent track record of the company

3. Nestls brand name depicts the high quality product

Current strengths We realize that our above strengths could not lead to success because of failure of our marketing strategies. Instead we possess following strengths, which would definitely provide us ground to compete in the market: 1. Strong financial backing

Company has allocated budget of Rs.500 million on the promotion of Nestle Drinks for first six months. 2. 3. 4. Product shall be launched with 5 SKUs which will definitely attract our target segment Introduction of Nestles sugar free drink will provide additional choice to our customers. Addition of energizing component such as glucose and vitamin-D, which strengthens the energy of users.

Weaknesses: Previous weaknesses Nestle limo and malta was intoducd with just two flavours and two SKUs

1.

RE-LAUNCH OF NESTLE LIMO AND MALTA

2.

Low budget for promotion

Current weaknesses

Above weaknesses have been overcome. Our product has been launced with five SKUs and many flavours and we have increased our promotional budget. However currently we face following weaknesses:
1. Previous image of brand

2. Discouraged retailers because of past performance 3. Launching of the brand in limited cities

Opportunities:
Previous opportunities: 1. 2. Good image of Nestle would help us to attract the consumers Increased market demand. People prefer instant drinks than carbonated drinks.

Current opportunities Because of failure in our distribution and promotion activities we could not take the opportunity of excellent image Nestle brand. However currently we have opportunities which we can avail in future to increase our market share: The brand image of nestle is the sign of high quality and reliability in the mind of both consumer and distributors. 1. There is high demand and consumption of instant drinks 2. Increased media influence on people.

Threats: Previous threats There is high demand for competitors brand in the market. High competition in the market.

1. 2.

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Current threats 1. We realize that our direct competitors such as TANG, LIMOPANI AND ENERGILE have established their strong position, and 2. We Launch during Ramadan so we dont have enough time to grab market

Merchandising

Merchandising is the activity of promoting the sale of goods, especially by their presentation in retail outlets. It includes combining products, environments, and spaces into a stimulating and engaging display to encourage the sale of a product or service. Our merchandising strategy includes gondola merchandising with both primary and secondary homes in all super stores and retailers in big cities all over Pakistan. Our merchandising object is to attract consumers through neat and clean products placed on eye-catching shelves at reasonable height. We have made agreements with many super store to push our product through attractive merchandising and personal talk. We offer them very attractive benefits to become our merchandising partners.

RECOMMENDATIONS

Our recommendations for re-launch include: Changing brand name from Nestle Limo and Malta to Nestle Drinks Introducing the Sugar free version Offering Nestle Drink in five SKUs and in various fruit-flavors. Enhancing the budget for promotional activities to Rs. 500 millions. Offering attractive offers to our distribution partners Ensuring successful merchandising Getting feedback for 6 months after launches and if required change in taste, flavor etc.

RE-LAUNCH OF NESTLE LIMO AND MALTA

CONCLUSION
We expect successful re-launch of Nestle Limo and Malta as Nestle Drinks, if our recommendations are fulfilled. We realize that our direct competitors are well-established however we have great opportunity of Nestles brand image and growing demand and consumption for instant drinks in the market. Our effective marketing strategies including 4Ps and merchandising will lead to successful re-launch of Nestle Limo and Malta as Nestle Drinks

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