Part # I

SAMURAIS 1
 Company Mission Statement:

Companies Vision

More than just offering food and beverages, Nestlé Pakistan is a leading health, wellness and
nutrition company. We believe that good food is necessary for a good life. In fact, health and
nutrition is more dynamic than ever. Food has evolved from being a necessity to becoming
an expression of how we live. This is why Nestlé Pakistan products are developed to provide
a safe and healthy source of nutrition to all family members.

Product Oriented Mission:

To provide at a fair price-nutritional, well

prepared desi soups using quality
ingredients, this is consistently perceived
as hygienic and tasty. To ensure that
each customer receives prompt and
courteous service. Taste how much we
care!

SAMURAIS 2
Nestle Pakistan Limited - Company Profile Snapshot
Company Profile:
Nestle Pakistan Limited
Ticker: NESTLE
Exchanges: KAR
2008 Sales: 32,031,000,000
Major Industry: Food & Beverages
Sub Industry: Diversified Food
Country: PAKISTAN
Employees: 2174

NESTLE TODAY
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.

SAMURAIS 3
Part # II

SAMURAIS 4
 MARKET ANALYSIS (EXTERNAL) OF NESTLE FOR
LAUNCHING NEW PRODUCT

Nestle is the largest industrial company, but it is also the World's Largest Food Company.
The mission statement emphasizes on the fact that Nestle products are available in nearly
every country around the world. Wherever one may live, only Nestle can provide the best
and most reliable food and beverage products to meet his/her needs throughout the day,
throughout the life. Especially, people on the move want to be able to find good food
wherever they are, whatever the time of day. They are often reassured that they will find
well-known brands out of home. This statement also reflects the image of high quality
products that Nestle offers. Nestle has the advantage that it offers caterers, fast food
chains and other restaurants a complete range of high quality ingredients, base products
and meal components, as well as leading consumer brands such as Nescafe. Quality is
the cornerstone of the success of the Nestle Company. Every day, millions of people
all over the world show their trust in the company by choosing Nestle products. This trust
comes from a quality image that has been built up for over a century.
About the product:
Nestle has proven this ability a number of times by introducing new products that
were required by consumers. Therefore it has taken a step forward to bring
INNOVATIVE change in SOUP industry by introducing two kinds of soups in view of
the local taste after detailed analysis of the position of its company being
• NESCHICK DESI SOUP
• NESCHICK HOT AND SOUR SOUP
External factors in the market that are likely to directly or indirectly affect the success of
the new product are well assessed .Firstly the competitors in the market for soups such as
knorr soups and Mezan soups have been identified which although have not catered to
the market need of on the spot serving of DESI variety of soups yet can enter the market

SAMURAIS 5
to give cut throat competition. Secondly the masses have developed taste for soups
available at common stalls in market places. These common VENDORS are out there to
give a tough competition.
However our EXTERNAL analysis indicates that the concept is not introduced in the
market in form of final product as very few companies can provide reasonably priced
well cooked Desi soups. To be successful we aim to provide:

• To cater for consumer convenience by providing prompt on the spot Desi and
Hot and sour soups at affordable prices.
• Quality is a competitive advantage therefore hygiene is prioritized.
• Nestlé continues to maintain its commitment to follow and respect all
applicable local laws in each of its markets.
• To appeal to the local consumers catering to their tastes in soup.
Market Summary

Nestle Pakistan Limited (Nestle Pakistan) is a subsidiary of Nestle S.A. based in

Switzerland. Nestle Pakistan is principally engaged in the manufacture, processing and
sale of food and beverage products which include milk, yogurt, ghee, cream, coffee,
juices, instant drinks and bottled water. The company also manufactures infant cereals,
breakfast cereals, prepared meals, chocolates, confectionery and culinary products. The
company markets its products under international brand names that include Nescafe,
Maggi, Cerelac, Milkybar, Kit Kat, Bar-One, Milkmaid, and Pure Life. The company
with three manufacturing facilities operates all over Pakistan. Global Markets Direct’s
Nestle Pakistan Limited.

CURRENT MARKET SITUATION

ACCEPTANCE LEVEL OF NESTLE IN PAKISTAN
Market share and Financial Success
Nestlé’s business objective is to manufacture and market the company’s product in such
a way as to create value that can be sustained over the long term for shareholders,

SAMURAIS 6
employees, consumers, and business partners which is why its products are successful in
Pakistan having the highest market share.
Mineral water and Confectioneries have high market share and high industry growth
rate. These Sbu’s are requiring lots of investment to compete in the growing market. For
example, lots of money is being spent and aggressive marketing strategies have been
implemented for the Mineral water to build and maintain market share.
Nestle Pure Life has captured 50 % of the bottled-water market in Pakistan since it was
introduced in 1998. Its approximate sales for 1999 are RS. 70, 401000. This sales figure
is quite impressive as the sales rose quite high in only one year. It is predicted that there
will be additional growth in the mineral water category in coming years. The sales of the
confectioneries rose to RS. 106,559 000 from RS. 87,758 000. The huge increase of RS.
18, 801 000 shows its increasing market share. There is a growing market for the
products in confectioneries for example Kitkat (even though it’s imported), Nestle
beverages somewhat have the high market share in their business, because with the high
quality and new designs which comes every now and then makes them more popular
among the customers, because customer with upper class wants the quality and nestle
offers the best quality food items.
Milk products, Coffee and Dietetic and Infant food have a high market share and are
doing business in mature industries. Since the customers of this product category are
loyal, the marketing costs are quite low and as a result a large amount of cash can be
generated.
The sales of the Milk products have increased to RS. 108,430000 from RS. 87,758000.
This huge increase in sales reflects the high market share. However, its growth rate is low
because in general this category is in its maturity stage – that is – a number of milk
products have been launched by Nestle, most of which are quite old. An innovation has
not really been made in this category.
The same conclusion can be made about Coffee. There is an already existing market for
Coffee which is not increasing further by a large amount. The sales of Coffee were Rs.
46,89,000 and Rs. 392,00000 in 2008. This huge difference shows that a great amount of
cash is being generated. Sales of Dietetic and Infant food rose to Rs. 60,935 000 from
Rs. 52,655 000. The infant foods unit of Nestle is operating in a mature industry. Like the

SAMURAIS 7
milk products, the infant foods have been around for a long time without barely any new
product line being started in this category.
The products such as Maggi 2-minute Noodles and Maggi cold sauces have a low market
share and a high growth rate. These products especially the cold sauces are operating in a
highly competitive market. The approximate sales were Rs. 79,919 000 in 1999 and Rs.
60,818 000 in 1998. This figure represents a great potential for growth in future.
However, in contrast, the market share of the products in this category is not very high
currently.
Chocolate and Fruit drinks fall into this category and they possess a low market share
and a low growth rate. Chocolate drinks had sales of Rs. 19639000 in 2007, which rose
from Rs. 19541000 in 2008. This is quite a small increase However; the chocolate drinks
are still profitable so the firm does not have to worry about liquidating or getting rid of
this SBU. The sales of Fruit drinks rose to Rs. 40,620 000 in 2007 from Rs. 38,103 000
in 2008.
Nestle baby food items i.e. nestle cerelace and other baby food products. Company has
to take measures to maintain and increase its market share.
The pharmaceutical products are not making much business compared to other
products, because it has low-share business with low growth market especially when we
talk about Pakistani market. The company has to think on what it can do by improving
the low share and growth market.
In Pakistan nestle has their Competitive edge based on these Strategies:
1. Product Differentiation
2. Customer Oriented

TARGET MARKET:

Target audience of “NESCHICK DESI” will const of segments of the market that have a
taste for Desi cultural food so that the spices are adjusted just to fulfill the need of such
consumers. To establish a strong hold and success for this innovative soup differentiated

SAMURAIS 8
marketing to select the target market will is considered since not every individual having
a need for soup will have a taste developed for desi masala soups.
For “NESCHICK HOT AND SOUR” the target market is not limited to any segment.
Consumers of all Ages, gender and income groups can have a taste of nutritional soup
thereby undifferentiated target marketing approach is used and for all consumers having
access to places where soups are served. The new product is reasonably priced so as to
attract all masses and societies.

MARKET SEGMENTATION
To occupy a clear distinctive & desirable place related to competing mineral water in the
minds of the target customers Nestle segments its Market for new launch on two bases:
• Geographic segmentation
• Demographic segmentation
• Behavioral segmentation
GEOGRAPHICAL SEGMENTATION:
Nestle segments its market geographically on divisional basis depending on nature of
products launched. Each division in different zones is divided normally and every
distributor is restricted to sale its products only in his own zone. It can be:
World region south east Asia, America. middle east
Country region Pakistan
City Islamabad- Rawalpindi, Karachi, Lahore
Climate moderate to extreme winters
Geographical distribution of NESCHICK AND HOT AND SOUR is on basis of cities it
is to be provided which will grow with the passage of time.
DEMOGRAPHIC
If we look Nestlé’s demographic segmentation for New on the spot soup, we will find
that our product is for every one. People from any area, any culture, any age, any sex, any
belief and any income. It is not any luxury item which is used by specific people.
AGE For all ages
GANDER Male / Female / hermaphrodite
FAIMLY SIZE 1-2-2-3……..
Family life-cycle Children (under supervision of
parents/guardian), adults. Single, adults.

SAMURAIS 9
 Single, married couples (no children),
married couples (with children)
Income all income groups above Rs 10000
Occupation People from different professions.
Students, Doctors, engineers, housewives
etc
Nationality Pakistani
Religion Muslims, all ethnic groups

Behavioral Factors
The behavioral factors influencing our new product are following;
1. Occasions
The usage of our product would be regular or occasional because the soups are to be
provided in marketplaces and recreational places where passer by’s can regularly or in
certain places occasional such as in parks or cinemas.
2. Benefits
Our product’s benefits are reasonable price, quality, and accessibility. On the spot
serving which is convenience?
3. User status
User status is what status is required to be able to have the new product. For desi kind
First timers otherwise all kinds of user status can have the product.
4. User rates
User rate of our product may be light users to medium users who will use our product
once in a day or twice.
5. Readiness Stage
Mostly those consumers who are unaware but interested and desirous are likely to be
targeted.
6. Loyalty status
The loyalty status of our product is none because the new product will develop its
product loyalty gradually at the other extreme it is strong for those consumers who
believe in the name of the company. And show brand loyalty.

SAMURAIS 10
7. Attitude towards product
The attitude of user is expectedly positive as famous company with established reputation
launching a product appeals to consumer positively and secondly something according to
local taste is introduced.
Market Growth
Market growth for our product is very gradual because the total share of our product is
really very less because of very few products available in market.
Moreover our product has seasonal impact also so the more usage will be in winters or
cold parts of the country. So there is potential for growth in this product line but for that
we need to give proper awareness and massive advertisement campaigns to put some
drive in the market growth.

SAMURAIS 11
Part # III

SAMURAIS 12
 Internal Company Analysis
Hierarchy of Nestle Pakistan:

Chairman

Chief Executive

CFO & Director

CFO & Director

Director

Director

Director

Director

Director

SAMURAIS 13
 Director & Company Secretary

Nestle Pakistan Products

Nestle provide a wide range of products under these heads:

Milk dairy and chilled dairy products

• Nestle milkpak
• NESVITA
• NIDO
• NESLAC
• EVERYDAY
• Yogurt and fruit yogurt, Raita
• Cream
• DESI GH
Beverages
• NESCAFE
• Milo
• Juice
• Instant Drinks

SAMURAIS 14
 • Bottled water
• PURE LIFE
• AVA

Baby food
• CERELAC
• Prepared meals
• 2‐Minute Noodles
• Breakfast cereals
• Chocolate and confectionery products
• Kitkat
• Polo

Current market situation

Presently people cannot give time to prepare tasty and delightful soups at their homes and
about 80 % preferred visit restaurants, different outlets and willingly orders for soups as
an appetizer before meal, so according to the current situation of the market we would
prefer to enhance the taste and flavor and different flavors of soups

STRATEGIC PLANNING
SWOT ANALYSIS OF NEW PRODUCT
SWOT Analysis is a strategic planning method used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It
involves specifying the objective of the business venture or project and identifying the
internal and external factors that are favorable and unfavorable to achieving that
objective.
• Strengths: attributes of the organization that is helpful to achieving the objective.
• Weaknesses: attributes of the organization that is harmful to achieving the
objective.
• Opportunities: external conditions that is helpful to achieving the objective.
• Threats: external conditions which could do damage to the business's
performance.

Strengths:-

• Company’s name Nestlé” signifies the quality image high standard and quality
product therefore Neschick soups are likely to gain success in markets because
established company is launching it.

SAMURAIS 15
 • Direct interaction with costumers will better enable company to meet their needs
effectively.
• Loyalty from customers is also the major strength for the product because those
who go for the name will always buy and recommend others to buy Nestlé’s
products.
• People trust on products due to the proper health and safety measures and since
Nestle signifies hygiene in its projection for Neschick soups. The product will
attract those who go for quality.
• Being a multinational company it has the capability to attract more customer than
the local companies.
• Company has the ability to compete in a dynamic environment.
• Swift preparation from materials available.

Weaknesses:-
• need to improve the facilities like sitting arrangements

• The distribution cost is high as compared to the competition in the local market
because of high standards set.

• Costumers think that it should be complimentary.

• Availability in certain places limit its provision to potential costumers

Opportunities:-
• long term business expansion with opportunities to enter into catering business
and outsourcing.

• Can spread the branches within the city and country wide provision.

• Have the opportunity to offer snacks.

• Can provide its service in schools, collages and in universities.

• Can provide incentives to shopping malls and retailers and associate its name with
big name to practice consumer segmentation charging high prices from them as
well as provision in local common places.

Threats:-
• Financial condition of the people are declining the current economic scenario of
country this might affect the sales of Neschick soups.

• rising cost of the material

• Fear of competitors entering the market with reduced prices and standards taking
up market share of Neschick soups.

SAMURAIS 16
 • Some companies are competing on the basis of cost such as local vendors getting
more profits and offering less prices.

CONCLUSION OF SWOT ANALYSIS

The strengths and opportunities of Neschick soups outweigh the weaknesses
and threats therefore the new product has a long way to go supported by
extensive promotion and advertising to create demand for NEW OF ITS
KIND soup Neschick Desi.

Product Offering

We are introducing new product from portfolio of Nestle. These products differ from
what Nestle is known for making like Milk, Chocolate, and Juices etc. Although these are
different in attribute from other products of Nestle it has basically what Nestle works
very well in that is providing new innovative and most importantly tasty and healthy
products that is what the idea of soup is based on. We are offering the benefits which are
communicated and delivered by product attributes as:

Quality Maintenance

As Nestle aims on providing its products at very good quality level. Our product
completely fulfills the criteria of hygiene and good quality and we have made sure to
provide the same great taste of Nestle. As it is made under high observation of our
quality control scientist and the ingredients are also checked for their freshness and
quality.

Features

We have introduced the following features in our product keeping in mind the results of
our marketing research and people expectations.

1. Affordable: “Neschick Desi and Neschick Hot & Sour” are both very affordable
and economical for our targeted customers. While developing our product we
have carefully considered the buying power of our targeted customers and their
expectancy for the product price and also kept in view the interest and profit of
the company.

2. Good Quality: Our product is very hygienic so it is of good quality.

3. Taste: We have maintained the same great taste that Nestle is known to provide.

SAMURAIS 17
 4. Healthy: We have introduced the products which are very healthy and our quality
control makes it totally healthy for the customers.

Packaging

Packaging means designing and producing the container and top cover for the product.
Packaging should also be done carefully as it is the key to attract the targeted customers.
If the product is good and packaging is not attractive customer will not be attracted to
buy our product.

So we have designed our container accordingly. We have planned to provide the soups in
chicken shape bowls. It is easy to handle and the consumers will enjoy their drink in a
convenient and attractive way.

Labeling

Labels involve things from simple tags attached to products to complex graphics
that are part of the package advertising. Our label includes the company’s and
product logo along with the details of ingredients used in the product. We will
also show the complete details about price on back side of the pack with full
details of tax and consumer price in order to maintain the customer satisfaction
that is our major objective.

SAMURAIS 18
 Part IV

SAMURAIS 19
 STARS QUESTION
MARKS
• Pure life Water • Culinary
products(noodles)
• Confectioneries

• Desi and hot sour

soups

CASH COWS DOGS

• Milk products • Chocolate drinks

• Coffee • Fruit drinks

• Diet and Infant foods

BOSTON MATRIX: Where possibly our new innovation lies?

STARS:
The two Subs’, Mineral water and Confectioneries fall into this category of the BCG.
These Sub’s have high market share and high industry growth rate. This Sub’s are
requiring lots of investment to compete in the growing market. For example, lots of
money is being spent and aggressive marketing strategies have been implemented for the

SAMURAIS 20
Mineral water to build and maintain market share. Nestle Pure Life has captured 50 % of
the bottled-water market in Pakistan since it was introduced in 1998. There is a growing
market for the products in confectioneries for example Kitkat (even though it’s
imported), Polo Smarties etc. This can be proven from the fact that Nestle keeps
introducing new products in this category for example Allen’s Soothers were launched
during the last quarter of 1998.

CASHCOWS:
Milk products, Coffee and Dietetic and Infant food have a high market share and are
doing business in mature industries. Since the customers of this product category are
loyal, the marketing costs of these SBU’s are quite low and as a result a large amount of
cash can be generated.
Customer Loyalty is a must for these Cash cows to maintain their market share. Huge
increase in sales reflects the high market share of this SBU. However, its growth rate is
low because in general this category is in its maturity stage – that is – a number of milk
products have been launched by Nestle, most of which are quite old. An innovation has
not really been made in this category. The same conclusion can be made about Coffee.
There is an already existing market for Coffee which is not increasing further by a large
amount. The infant foods unit of Nestle is operating in a mature industry. Like the milk
products, the infant foods have been around for a long time without barely any new
product line being started in this category.

QUESTION MARKS:
Included in this section are the culinary products of the organization. The products such
as Maggi 2-minute Noodles and Maggi cold sauces have a low market share and a high
growth rate. These products especially the cold sauces are operating in a highly
competitive market However; in contrast, the market share of the products in this
category is not very high currently. A reason for this is that if Nestle just recently
introduced NESCHICK Desi and NESCHICK Hot and sour soups so the enthusiasm
with which the customers received the different flavors and a new taste, portrays a very

SAMURAIS 21
high potential for future growth. The firm needs to focus on differentiating its products in
the competitive market to gain customers.
DOGS: Chocolate and Fruit drinks fall into this category and they possess a low market
share and a low growth rate. However, the chocolate drinks are still profitable so the firm
does not have to worry about liquidating or getting rid of this SBU. There is not a huge
market for chocolate drinks in Pakistan. People usually tend to buy light juices like apple
or orange juice or Pepsi instead of chocolate drinks. Secondly, regarding the fruit juices,
there are not a lot of flavors available currently in this category. Nestle needs to introduce
new flavors such as apple, grape etc. to capture the market that prefer these flavors.
Positioning:
Definition:
The way the product is defined by the consumers on important attributes- the place the
product occupies in the consumers minds relative to competing products
Positioning of Neschick:
Nestle is really a known company in Pakistan. All of the nestle products positioned itself
as energetic, pure and good for life products. The place the nestle company occupies in
the consumers mind is, nestle means purity and nestle means good for life.
As our new product Neschick is basically a soup. It is a kind of food which perceived as
a nutritional food that’s why we follow the same path. We present it as all pure full of
nutrition’s with the touch of desi immunity and taste.
Positioning map:
Nestle sets its image in the market as a pure products providers which is good for health
with a good taste. Nestle always distinguish itself on the name of purity as following the
same map Neschick also be perceived as a fully nutritional and pure product, with the
touch of desi immunity and taste. At present in Pakistan there is no such multinational
company who is providing prepared soups all over the Pakistan and the soups often
available in the market didn’t get the position of ‘all pure’ in the mind of the consumers
and secondly desi soups and other soups are widely distinguished in the market. Desi
soups are known foe their power of immunity and nutrition’s others are known for their
taste so this time nestle is going to merge the two concepts providing desi nutrition’s and
power of immunity with the tremendous taste.

SAMURAIS 22
Choosing a Differentiation and Positioning Strategy:
The differentiation and positioning consists of three steps:
• Identifying a set of possible customer’s value differences that provide
competitive advantages.
• Selecting an overall positioning strategy.
• Communicate and deliver the chosen positioning the market

Identifying a set of possible value differences and competitive advantages:

To build profitable relationships with the target customers, marketers must understand
customer needs better than competitors do and deliver more customers value.
Nestle identifies that customers needs to have a good quality soup which should be pure
and have greater immunity that’s why nestle decides to come up with the new product
and that is Neschick soup.
Competitive advantage:
An advantage over competitors gained by offering consumers greater value, either
through lower prices or by providing more benefits that justify higher prices.
Neschick differentiate itself along the line of image. Nestle has an image in the market as
they are the providers of ‘all pure’ products and their products are good for life. We are
also using the same image with a little modification for the new product
Neschick competitive advantage is that it merges the qualities of desi and western
soup….taste the desi spice. It includes all the potentials of a desi soup with an improved
taste. This is the reason that in our slogan we merges Pakistan own traditional word
“desi” with western word spice.
As there are much other advantage like it is a pure product and good for life but in
positioning we take the above mention advantage as the dominating one, using the
concept of unique selling proposition.
Selecting an overall positioning strategy:
The full positioning of a brand – the full mix of benefits upon which it is positioned. We
choose the more for same winning preposition for our new product. Neschick cost for
Rs80 for customers. It is an average price for soup in the market but we deliver more
value on the average price (we are delivering more). We are preparing our soups with the

SAMURAIS 23
original fresh meat and using all the natural elements instead of the artificial one’s and
taking all the health measures in account. Neschick is a power of immunity taste and
satisfaction for the consumers.

Positioning statement:
To all family, soup consumers who needs to be active and healthy in cold winters.
Neschick is a soup that gives you the power of immunity taste and satisfaction more
than any other brand. It has all the natural desi ingredients with the delicious tast.
With Neschick you can stay healthy and active even in the freeze pulse of winters.
Communicate and deliver the chosen positioning the market:
Neschick seizes on more for more position so we will produce high quality soup
and distribute our products through high quality dealer and advertise through the top
media channels working in Pakistan

Market Mix
As we know that in the market mix, there is concept of four Ps which are Product,
Pricing, Place and Promotion. So we will analyze each of them here;

i. Product

• Variety: This new product will be offered to customers in two varieties

Quality: In-order to attract and retain customers, there will be no compromise
on the quality of the product. Quality can be reduced by little amount once
market share is captured.
• Brand Name: The brand our product falls under is “NESTLE” and the name
of the product is “NESCHICK”.
• Packaging: The product will come in a chicken shaped bowl.
• Services: The services provided with this product will be Nestle.

ii. Pricing
Our both products cost just Rs. 80/ bowl. Our product is new in the market. It has
existing competition from both, the domestic and foreign market. In order to attract a
large number of buyers and in-turn capture a significant market share we need to set
lower prices than competition. In other words we will be using the “Market-Penetration
Pricing” system for our product as we introduce it in the market.

SAMURAIS 24
iii. Place
• Availability in cafeterias of all universities.
• Contracts with catering businesses and out sourcing contracts.
• All shopping malls and parks
iv. Promotion:
Promotion is the activity in which the company has a chance to interact with its
customers. To Promote we use different promotional tools. These tools include
advertisements, sale promotions, public relations and personal selling.
Promotion strategy is a key process through which we can create awareness among the
customers. Through this strategy we can launch our product into the market because the
Neschick Desi and Neschick Hot & Sour has not yet been launched by our competitors,
and the second thing is that the customers have not been provided by these flavors on
such a large scale and by an established and well know company like NESTLE. So we
have to spend a lot of budget on our promotion, so that we can give a lot of knowledge of
our product to our customers. With the help of this we will have a strong grip on market
share in the future.
As our product is totally based on its freshness and the other most important thing is that
it is really healthy so by these attributes we can capture a group of people like the one’s
who are working in an organization living away from their home, and students who are
living in hostels and also families who came out for some quality time they will buy it
too because NESTLE provides the surety of freshness, taste and health like in its all the
other products. So our product will give them a taste of just like home made soup. By
focusing on our strategy we will grab the market share easily.
The Strategy:
We have decided to use the “Pull Strategy” for the promotion of our product, because we
have to motivate the customer by boosting them towards buying behavior so that the
customer itself goes for buying our product and at least trying it for once, afterwards the
taste and quality of Neschick Desi and Neschick Hot & Sour will make the buyer
purchase the product again and again….. We also have used this strategy because instead
of buying our product from our outlets the customers can easily buy it from any
departmental store which will help them to save their time.

SAMURAIS 25
Following are the strategies we have decided to use for the promotion:
Public Relations:
To increase our sales we will also tie good public relations. We will develop our public
relations by doing the work of social responsibility, like wishing happy Eid or wishing
any other special event to our customers.
Through Public relations it also creates a good word of mouth for our product which is
the most efficient way of promoting a product.
Using Electronic Media:
In electronic media we have decided to promote our product through local television
channels, FM radio stations and through mobile phone sums service. By doing this we
can easily aware our customers about our product and this will bring us maximum result.
We will also promote our product through our company’s own website in which we will
give extra information which is required to our customers.
Print Media:
In this type of promotion we will use the billboards of Islamabad and Rawalpindi; we
will also promote our product through popular magazines and newspapers. We will use
posters and pamphlets in each and every departmental store by doing this we can easily
create awareness of our product among our customers.
Distribution:
After the development of our product, it should be distributed into the market for the
satisfaction and attraction of our consumers. Our product plays a vital role in the
availability of our services to attract the customers. In order to do a successful
distribution we have to find certain product marketing channels which will play a vital
role in making the product easy available for the customers.
We have used the indirect marketing channel for the distribution of our product as the
customers will get the soup by the help of other retailers as we will provide it in parks,

SAMURAIS 26
malls, popular hotels and places like Jinnah Park, Saddar, Jinnah Super, Monal ……….
to make our soup easily available to the buyers.

How to Distribute our Product to Retailers:

1. Sell Directly to Retailers.
2. Sell through distributors, which sell a broad range of products to many
retailers.
3. Sell through captive distributors, which sell a broad range of products to one
chain of retailers.

SAMURAIS 27
 Part V

SAMURAIS 28
Financial Objectives
Financial plan
The financial plan consists cost of production, balance sheet, cash flows, profit loss
statements and breakeven sales. Together, these spreadsheets constitute an estimate of
our Product financial future. More important, however, the process of going through the
financial plan will give venture capitalists an insight into the inner financial workings of
our company.
Key Assumptions
1. Sales Increase 25 % per year
2. Increase in Cost of Raw Materials 15 % per year
3. Increase in Staff Salaries 20 % per year
4. Increase in Utilities 21 % per year
5. Increase in Expenses 10 % per year
6. Debt / Equity Ratio 25: 75
7. Depreciation of all fixed assets’ with useful life of 10 Years
8. Depreciation method: Declining method
9. Equipment Annual Maintenance Cost 2.5% of Written Down Value
10. We assume that profits are reinvested in the business each year

SAMURAIS 29
Projected Balance Sheet

Statement of Profit loss:

SAMURAIS 30
Statement of Cash flows:

SAMURAIS 31
Breakeven Sales:

SAMURAIS 32
 Controls

Fair Price: The control of price is also an important thing which should be controlled to
maintain Nestlé’s standards for better customer feed back. We will have special teams
to check on our price control.
Control on distributors: The control on distributors is an important point to maintain
the proper distribution in the market. As we are distributing our product by our own
distributors so we can better maintain the proper and timely distribution.
Demand & supply: The control of supply and demand of the product is an important
issue. We will try to maintain supply and demand ration by keeping an eye on such
issues.
Total quality control: we have to have check on our quality. We will have special for
our quality control. We will have specific Labs for our quality assurance. We will create
teams to check quality of products at different availability spots.
Implementation
The product will be implemented through various ways
• The product is launched in different sizes i.e. large size, medium size, and small
size.
• We will attract the universities students, friends, office fellows, by sending our
representative, emails and through other sources.
• We will use free sampling technique. For examples at launching we will offer free
offer to first 300 customers.
• We will take care of our franchisers by offering special commission to them.
• We will use proper distribution channels to distribute our product.
• Through customer feed back we will collect useful data and will analyze that data
for future implementation.

Suggestions

We don’t suggest our customer; actually we recommend them because our product has:
• Total control and no compromise over quality.

SAMURAIS 33
• Easy availability of the product
• No product of such quality is available in the market.
• Ingredients of our product are totally natural and healthy.
• So it is nutritious and healthy.

SAMURAIS 34
 Questionnaire
Name: ____________________________ Age: ________________

Occupation: ________________________ Gender: ______________

1. Over all how would you rate Nestle?

Excellent Good Average Poor

2. For your next purchase of food items how likely are you to purchase from Nestle?

• Definitely would buy

• Probably would buy
• Probably would not buy
• Definitely would not buy

3. Which of the following do you prefer in winters?

Soup Coffee

4. Do you like to take soup as an appetizer?

Yes No

5. Which kind of soup do you like?

Chinese Desi Kind Corn Soup Hot and sour

6. How often you visit restaurants in winters just to have soup?

Every day Once a Week Once in two weeks Once a Month

7. Do you like our soup name and logo?

Yes No

8. How interested would you be in buying new variety of soup “Neschickdesi” soup and
“Neschick hot and sour” soup if priced within your budget?

Not at all Not very interested Not sure Somewhat interested Very Interested

9. What price would new Neschick Soups begin to look expensive? Select one.

SAMURAIS 35
Rs 150/bowl Rs 120/Bowl Rs 90/bowl Rs 80/bowl
10. Which way of serving our NESCHICK soups is a convenient option for you?

On the spot serving Packets Take away

11. The Accessibility of Neschick soups should be near:

Shopping malls Recreational Parks Main Markets

12. What is the standard quantity of a bowl of soup in your view?

250ml 350ml 500ml

13. Do you think our aim to provide well prepared nutritional, Desi as well as hot and
sour soups caters to your need in winters?

Yes No

14. Do any company in your view have been innovative enough to meet the requirement
of costumers and launch products in view of the local taste such as Neschick Desi soup?

Yes No

15. What are your Expectations from our new variety of nutritional, hygienic and Desi
flavored soups?

High Average Low

Overall Evaluation of Questionnaire

80

70

60

50

40 Series1
30
20

10

0
positive neutral negative

SAMURAIS 36
 References
Nestle Pakistan website
http://www.nestle.pk/
“Principles of marketing” by Philip Kotler and Gary Armstrong

Ma’am Sarwat Kazmi, Lecturer, COMSATS Institute of Information

Technology.

SAMURAIS 37