TABLE OF CONTENT

GLOBAL ORGANIZATION--------------------------------------------------------------01
CORPORATE MISSION-------------------------------------------------------------------01
LEADING BRANDS ------------------------------------------------------------------------01
INTRODUCTION OF LEMO AND MALTA -----------------------------------------01
ORIENTATION STRATEGIES ---------------------------------------------------------02
MARKETING ENVIRONMENT --------------------------------------------------------02
MARKETING RESEARCH & METHOD ---------------------------------------------03
SEGMENTATION---------------------------------------------------------------------------03
TARGET MARKET ------------------------------------------------------------------------03
PRODUCT DEVELOPMENT PROCESS----------------------------------------------03
POSITION OF LIMO / MALTA----------------------------------------------------------04
PRICING STRATEGY ---------------------------------------------------------------------04
DISTRIBUTION STRATEGIES ---------------------------------------------------------04
PROMOTIONAL MIX ---------------------------------------------------------------------04
ANALYSIS
WHY FAIL ???-----------------------------------------------------------------------------05
RELAUNCH
CORPORATE MISSION AND OBJECTIVE------------------------------------------05
RECENT MARKET TRENDS ------------------------------------------------------------06
SEGMENTATION STRATEGY----------------------------------------------------------06
STRATEGIES & TACTICS ---------------------------------------------------------------07
PRODUCT DEVELOPMENT-------------------------------------------------------------07
TARGET MARKET-------------------------------------------------------------------------08
POSITION OF ORANGE & LEMONADE---------------------------------------------08
7 P’S
PRODUCT (ORANGE & LEMONADE) -----------------------------------------------08
PRICE-------------------------------------------------------------------------------------------09
PLACEMENT---------------------------------------------------------------------------------09
PROMOTIONS-------------------------------------------------------------------------------09
PEOPLE----------------------------------------------------------------------------------------10
PHYSICAL ENVIRONMENT ------------------------------------------------------------10
PROCESS--------------------------------------------------------------------------------------10
DISTRIBUTION STRATEGIES ---------------------------------------------------------10

CONCLUSION-------------------------------------------------------------------------------10
GLOBAL ORGANIZATION

It is a Swiss Company and has about 254,000 employees working world wide. Company
is operating in more than 130 countries. It is world´s leading Food & Beverage Company.
People, brands & products are the keys.

CORPORATE MISSION

Be the leading healthy, nutrition and Wellness Company in the world. Wants to be 100b
company in 2014 in Pakistan.

LEADING BRANDS

Nido Everyday Milkpak

Nescafe Nestle Purelife Cerelac

Nestle Dahi Milkpak Cream Milkpak Dasighee

Nestle Juices

INTRODUCTION OF LEMO AND MALTA

Lemo/Malta is the product of Nestle, Which was launch in July 2005. Company aimed to
target a growing segment of soft drinks. Company targeted smart and young house wives
of age between 25 years to 35 years, Socio Economic Class (SEC) B and C, with two
SKU (Stock keeping units), 25gm sachets and 500gm jar.

Company is committed of creating value for its Customer, and its shareholders. Company
has not launched any product for this SEC in lower price earlier.

Low price compare to Roh Afza, Jam-e-Sherin, Tang & Lemopani. These are the main
player in this category. Company thought that there is a huge market potential of growth
and profitability in this category.
ORIENTATION STRATEGIES
Company launched the product with market penetration strategy. The used the existing
distribution model to make the product available in the market.

MARKETING ENVIRONMENT

Competition
There is a limited competition. Only four competitors are playing in the market.
Roh Afza & Jam-e-Sherin in liquid drinks and Tang & Lemopani in powder drinks.
There are two other mushroom brands kwijkool and Mixer.

Economic
Consumer buying power was good and spending patterns in this category were
considerably growing. Roh Afza and Jam-e-Sherin ware not able to sufficiently fulfill the
demand of the market and was struggling with major stock outs.

Socio cultural
The trend is increasing that it is considered honor to serve the guests with Roh Afza, Jam-
e-Sherin, Tang or Lemopani. So company considered to be in this category with some
good product.

Technology
There is no technical machinery is required for the production of the product. Company
already has the strength to produce it.

Political
There was no political constraint in the production and marketing of the production.
MARKETING RESEARCH & METHOD

Competitors Intelligence
Company made a detailed survey and collected the data on the competitor’s activities.
They planed to launch the product in February when shopkeepers are trying to build
stocks for summer season.
Focus group
Company conducted focus group on smart young house wives. They conducted copy test
and obtained customers comments and finalized the ad

Price responsiveness
Competitors give heavy trade discounts and bulk purchase discounts. Promotional
activities include shop displays road shows etc.

Market share analysis

On the basis of the data collected company concluded that major players in the market
are Roh Afza & Jam-e-Sherin with 68% market share in liquid drinks. Tang had 12%
share and Lemopani had a share of only 7%. These two are the only player in powder
drink.

Test 60/40+
Company has blind tasting session. 60/40+ test showed that 57% of the smart young
housewives recommended that the product was very good.

SEGMENTATION

Geographic
Company launched the product in the major cities Lahore, Karachi and Islamabad.

Demographic and Psychographic

Company targeted smart and young house wives of age between 25 years to 35 years,
Socio Economic Class (SEC) B and C,

TARGET MARKET
As there was less competition in this category so company decided to adopt Single
Segment Strategy.

PRODUCT DEVELOPMENT PROCESS

Product Attribute
Company tried to introduce a good Quality product.
Physical Characteristics was design to give affordability convenience and launched the
product in two SKU’s 25gm and 500gm.
Price was kept low, 25gm of Rs.5/- and 500gm of Rs.130/-.
Brand Nestlé’s name was used to make the product successful in the market.
An attractive Packaging, Color & Design was used to appeal the customers.
Seller’s reputation and services were used by the existing distribution model.

Development Process
This was an Imitative Product for the company. Company tried hard to survive in the
market and get some considerable share of the market.

Criteria of Product
Category was in considerable growth, company’s financial and market structure was very
good to support the imitative product.

POSITION OF LIMO / MALTA

Company tried to position the product same as Tang had, with the same price point.

PRICING STRATEGY
Company launched the product at Rs.5/- same as the competitors price and started head
to head competition.

DISTRIBUTION STRATEGIES

PROMOTIONAL MIX

Company planned for the following promotional activities

 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.
 Free Sampling was conducted in Lahore, Islamabad and Karachi. 350Kg nestle
malta powder were sampled to create awareness.
 Town Storming activity was done in selective areas.
 Gift Scheme was introduced on redemption of empty packets.
ANALYSIS

Reasons Why Fail ???

 Trade Discount was less as compare to competitors
 Competitor’s ATL was more than Nestle
 Nestle was failed to create product awareness among consumers
 Quershi, Shezan and Halal foods also launched their products in the same
category along with Nestle’.
 Marketing investment was not sufficient.
 Nestle suffer badly with its Product Quality Problems.
 Try to cash Nestle name.
 SKU depth was not sufficient.
 Add was not clear and not attractive
 Pricing Strategy was not adopted
 Failed to highlight consumer benefits
 Design of product was not attractive
 Positioning was not clear
 No proper segmentation
 Taste was not good

RELAUNCH

CORPORATE MISSION

 Meet the nutritional need of consumer of all age groups from infancy to old age,
from nutrition to pleasure, through an innovative profile of branded food and
beverage product of highest quality.

Short Term Objectives

 To increase market share
 Restore brand image
 Increase SKU with success

Long Term Objectives

 To make this brand profitable
  Head-on Competition

RECENT MARKET TRENDS

• Powder Drinks Market is growing. Quershi, Shezan, Kwijkool and Halal foods
are out of this category.
• Economical factor to consider is that now its recession and buying power of the
people is much lower. So there is an opportunity to introduce low price product
which satisfied consumer needs.
• Convenience of time & place utility
• There is no FDI because of political and economical crisis and war against terror.
• Climate is suitable for the product as global warming is increasing temperature of
the world day by day.

SEGMENTATION STRATEGY

Geographical
Company will target all provinces major cities (Lahore, Multan, Faisalabad, Karachi,
Hydrabad, Peshawar, Quetta and twin cities Islamabad and Pindi) for the initial 1st year
of re-launch.

Demographical
All Age groups, A, B, C and D Class and for all races will be targeted.

Psychological
Socialized people and excitement seeking people will be targeted.

Behavioral
Company will target benefits seeking people. Company will highlight product benefits to
the consumers.
STRATEGIES & TACTICS

PRODUCT DEVELOPMENT
TARGET MARKET
 All age groups, specially young, enthusiastic and smart people.
 All SECs
 And the major cities as mentioned earlier.

POSITION OF ORANGE & LEMONADE

Company planned to reposition the product of supreme quality at affordable prices and
the best in the category.

7 PS
 Product
 Price
 Promotions
 Place
 People
 Process
 Physical environment

PRODUCT (ORANGE & LEMONADE)

Taste and quality will be improved through the revision of recipe.
Company will launch the product in four (4) SKUs 25gm, 130gms, 400gm and 1kg.

PRICE

The prices of 25gm, 130gms, 400gm and 1kg will be Rs.5/-, Rs.25/-, Rs.70/-, and
Rs.180/- respectively.
Company will use Sales Oriented strategy to increase sales volume and market share.
Price Competition will be to keep the low Price, lower profit margins and have deep
penetration in the market.

PLACEMENT

 Distribution channel for deep penetration

 Wholesale
 Direct Retailer Coverage
 Key Accounts (AL-Fateh, CSD, Rahat Market etc.) in store branding
 On Blue Account massive use of P2P (path to purchase) material
 Purchase proper and long term space for at least one quarter at International
Business Markets (Hyperstar, Metro, Makro etc.) and Key accounts.
PROMOTIONS

Advertising
 Promotion campaign will be launched at the same time on TV, Print Media,
Radio, Billboards two weeks after the stock is available in the market.
 Two weeks after the run of ATL, company will start Road Shows, School
Competitions and will start Sponsoring sports events.

Sales Promotions
 Company has planned to target 1000K glasses as Free sampling
 Trade discount will be given to the retailers so that they could promote the
product.
 Consumer Promotion is planned at international business markets and key
accounts. Supreme quality glass 1piece on purchase of 1kg pack.
 Lucky draws (Singapore return ticket) will be conducted at international business
markets and key accounts, monthly on alternate month basis and will be for three
months.
 Gift Hampers will be given to retailers on achieving targets and to consumers.
 Gift Hampers to consumers will be given on redemption of empty packs.
o 12 sachet of 25gm
o 6 sachet of 130gm
o 2 packs of 400gm
o 1 pack of 1kg

PEOPLE
 Company will use its Customer Service Centre and UAN number for regular
feedback.
 Post Launch feedback will be forwarded to quality department or other relevant
departments through the use of SAP (Information system) for prompt display and
action.

PHYSICAL ENVIRONMENT

 Company has planned to deliver extra ordinary services like close contact with
retailers and consumers to retain goodwill and enhance the image of the company.
 Massive In-store branding at all the distribution channels.
 Huaraches Activities in major shopping areas of all the cities of launch.

PROCESS
 Speed to the market is of the essence. Company has planned to make the product
available in the market on when ever, where ever and how ever basis.
  Quick and Prompt response to feedback will be taken in order to gain consumer
confidence.
 Company will ensure sufficient stock availability to avoid stock outs.

DISTRIBUTION STRATEGIES
Company will focus on both pull and push strategy to re-launch the product.
Company will provide product directly to International Business houses and to
Distributors.
Distributors will provide the products to national Key accounts, blue accounts,
wholesalers and retailers.
Consumers will be able to get the product from al these accounts and business channels.

CONCLUSION

 “Ambition is the path to success. Persistence is the vehicle you arrive in.”
- Bill Bradley