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Nestlé with headquarters in Vevey, Switzerland was founded in 1866 by Henri Nestlé and is
today the world's biggest food and beverage company.

The Company's strategy is guided by several fundamental principles. Nestlé's existing

products grow through innovation and renovation while maintaining a balance in geographic
activities and product lines. Long-term potential is never sacrificed for short-term
performance. The Company's priority is to bring the best and most relevant products to
people, wherever they are, whatever their needs, throughout their lives.





³We strive to bring consumers foods that are safe, of high quality and provide optimal
nutrient to meet physiological needs. Nestle helps provide selections for all individual taste
and lifestyle preferences.





 ³Nestlé's aim is to meet the various needs of the consumer everyday by marketing and
selling foods of a consistently high quality´.



 

Nestle water begins in 1976 when Nestle introduced Perrier® Sparkling Natural Mineral
Water in North America, a beverage that launched a generation of bottled water drinkers.
Perrier changed what people chose to drink and started a bottled water culture, appealing to
active, health-minded individuals. Every bottle of NESTLE Pure Life is produced with the
Nestle Safety System and is carefully sealed with a proprietary seal. An optimal balance of
essential minerals, enhancing the health and wellbeing of your family, matches purity of the
highest standards

Today Nestlé Water is established in 130 countries and markets about 70 different brands. In
1998, for the first time in its history, Nestlé associated its name with bottled water ³Nestlé
Pure Life´. Today the Nestle Pure Life brand is present in 20 countries around the world,
across all continents - Asia, Near East, South and North America and Europe

 
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Nestlé Pure Life was launched in Pakistan in 1998. One factory in Islamabad and two in
Karachi produce bottled water. Nestle Pure Life is a premium drinking water, produced to the

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highest standard of safety and purity. Nestle PURE LIFE offers an ideal balance between a
healthy supply of minerals and a pleasant, refreshing taste, making it suitable for the whole
family. It contains essential minerals such as:

 Necessary for building strong bones and teeth,

 Necessary for muscle contraction and transmission of pulses.


  
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The core objectives at which the brand is established are given below:
i.Y !"# To provide the consumers with a safe drinking water.

$Y %%!!&%&'"'#(&%)"âemineralization let Nestle offer consumers
a balanced, refreshing and healthy product, the product's second key objective.

iii.Y %%!!&!!%&)*&+"& As well as being pure, safe, healthy water,

Nestle Pure Life is affordable and convenient.

iv.Y %,"'(&%)"%-"(%* This is the product's fourth

objective. âue to its well-balanced mineral content, Nestle Pure Life can also be used
for cooking and to prepare tea or coffee.

In other words, Nestle Pure Life must be available in all sales and restaurants outlets and
anywhere else consumers young and old are likely to buy or drink water.


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The PEST analysis examines changes in a marketplace caused by Political, Economical,

Social and Technological factors.

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If government imposes heavy taxes on the industry then it badly effects the industry growth.
The taxes impose is from government side and it varies from industry to industry. Water has
no tax except sales tax.




Labor is being privileged here having all the laws. Nestle company also follow these law like
government announce minimum salaries of an employ Rs 7000.


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They do concern for environment and contribute more and more for the betterment of
environment.


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Foreign trade regulation does not affect the overall policy and the working of the ³Nestle
water´ because they operate nationally not internationally.

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They have no any agreement with any foreign company but if any company will offer the
business to them related / unrelated they would think about it according to terms and
conditions.

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The government stability also plays a great role for any industry. In Pakistan government face
lot of difficulty from the side of terrorism and also its activity that badly effect environment
of the country which is totally very upset. Recently in Punjab instability of government
creates lot of problem for the industry like shortage of electricity that badly affects the
industry operational process. Nestle water have not much affect this condition but in future it
may be face some difficulty for operating.


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If the income level of people is high then purchasing power will be high so they will purchase
more. Effect of economic factors on nestle water is given below:


 

Now in Pakistan inflation rate is almost 22.3% so if there is an increase in inflation rate then
prices of Nestle water also affects.


 


 


Today people are more health conscious so Nestle Water by identifying this need of the
people they are also producing health conscious water with more vitamins.

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 In Pakistan the population growth rate is 1.828% in 2008 and total population is 167,762,040
(July 2008.)

   

ÔY 0-14 years: 40% (male 33,293,428; female 31,434,314)

ÔY 15-64 years: 56.9% (male 48,214,298; female 46,062,933)
ÔY 65 years and over 4.1% (male 3,256,065; female 3,542,522)

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ÔY Population: 164,741,942 (July 2007.)

ÔY Arowth rate: 1.828% (2007 EST.)
ÔY oirth rate: 27.74 births/1,000 population (2007.)
ÔY âeath rate: 8 deaths/1,000 population (2007 )




  

About the environmental concerns of Nestle Water provides good health.

  

They consider quality life changes and take advantages of accordingly so that customer can
convinced as well as it plays a vital role to attain & retain the customer. Consumer adopts the
trend of changing environment because of modern facility as well as globalization they are
aware about each and every thing happening all around them.

 

  

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Nestle water focusing concentric and conglomerate diversification because in present era it is
not possible for any organization to exist in market for long run by providing just one
product. So Nestle water is diversifying according to changing demand of customers and
trends.

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Product innovation is becoming more necessary for the organization because of globalization
people are becoming aware about the changes being taken place around them so in order
tactical the situation nestle water is focusing on product innovation by introducing new flavor
of water with the passage of time NESTLE WATER use new tetra packing like easy open
cork of pack.



 
 

 

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All the modern as well as traditional ways of communication are being adopted by Nestle
water including own emails, letters, faxes and monthly visit in different offices of Nestle
water for better communication among supplier, distributor and customers. Nestle water has
also established own web site which can be visited any one for most recent news innovation
and activities being taken in the organization.


 



is the abbreviation of

 for Strengths

 for weaknesses

 for opportunities

 for threats

The SWOT Analysis is an extremely useful tool for understanding and decision
making for all situations in an organization. It provides a good frame work for reviewing
strategy, position and direction of a company.

As for as NESTLE WATER is concerned, ther e are also strengths, weaknesses,

opportunities and threats.

 
Strengths are company¶s positive points which help the company to attain the strong
position in the market which provide the company opportunities to become a better company
than its competitors.

NESTLE has following strengths which show its success.

ÔY Large market share

ÔY Already existing in market as compare to competitors

ÔY It is known as pure water
ÔY oest staff, special R & â dept.
ÔY Resources
ÔY orand image
ÔY Consumer pull
ÔY Category focused sales

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Every company have some weaknesses because no one is perfect in this world, as for as
NESTLE WATER is concerned, it also has some weaknesses.

ÔY Advertisement / Promotional Campaigns

ÔY Weak distribution due to less VANS
ÔY Less Number of Chillers
ÔY High turnover of salesmen
ÔY Low Trade Offer as compare to competitor
ÔY Food Services accounts e.g. Restaurants, ous stands, Railway stations
ÔY High price
ÔY Less party orders due to high price

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The company must use best strengths to take advantage of attractive opportunities in the
environment.

ÔY Changing Lifestyle
ÔY Faisalabad City âeveloping on Fast Track
ÔY Increasing literacy rate
ÔY Sub Standard Quality of ârinking Water
ÔY oig Shop Universe

 
ÔY High Trade offers by Aquafina & Kinley
ÔY Rising Inflation Rate
ÔY Low prices of competitor
ÔY Awareness of customer is increasing


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Major players in this industry are:

ÔY AQUAFINA
ÔY Kinley
ÔY Sufi
ÔY First
ÔY Others

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Porter's 5 Forces analysis deals with factors outside an industry that influence the nature of
competition within it, the forces inside the industry (microenvironment) that influence the
way in which firms compete, and so the industry¶s likely profitability is conducted in Porter¶s
five forces model.

 
 

‡Y Multinational companies can launch similar product

‡Y More companies joint in domestic market

 
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2Y âiversity products

2Y Confectionery, instant foods

2Y Not many firms focus on pet foods

2Y Average pressure

 


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ÔY There is a tough competition among competitors on
ÔY Quality base
ÔY Price base

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2Y Sign contracts with suppliers

2Y Stable suppliers
2Y Trust to the big firm

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2Y Variety demands

2Y âifferent tastes

2Y Need to attract customers

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For getting the maximum market share and respect of the product in the minds of the
consumer we have concluded that nestle pure life waters segmentation on based on two
points.

2Y A
  

 
2Y â
  

 


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ÔY Targeting Strategy of Nestle Pure Life is âifferentiated Marketing.Y

ÔY Nestle Pure Life Targets ooth Aenders.
ÔY Targets The Upper And Middle Class People Who Are Health Conscious
ÔY Tourists Are Also The Target Market Of Nestle Pure Life

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ÔY Newly ârinking Water With Safety And Security

ÔY Pure Water Pure Relationship
ÔY Safe And Healthy ârinking Water

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ÔY Its purity is its competitive advantage
ÔY Its promotional activities regarding after sale is attractive
Like if any bottle in pet is leaked but sealed, then it is replaced while no competitor do
like this, which create more security for business customer

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 ÔY More care in filtration process as compare to AQUAFINA


 



Nestle is leading the market with market share of 67%

 
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Nestlé Pure Life is drinking water that has been treated and rematerialized using a
standardized industrial process to ensure purity and quality. Pure and Safe Nestle PURE LIFE
refills your body with water to maintain a good level of hydration. It provides a balanced
mineral formula (on average 150-170 mg per liter), contributing to daily mineral
requirements.

   
 
Concentration,
Mineral Component
not more

Aeneral mineralization (mg/l) 220 mg/l

Calcium 40 mg/l

Magnesium 15 mg/l

Potassium 20 mg/l

oicarbonates 60 mg/l

Fluorides 0,6 mg/l

Hardness Mg-eq/l 3

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It is a consumer product and a convenience good.

 
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Nestle Pure Life is a pure, safe and healthy, colorless and odorless drinking water with a
pleasant taste.

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Nestle Pure Life.

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Premium drinking water

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Safe and healthy water

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Nestle is soon introducing flavored water in lemon, orange, raspberry and strawberry flavors.

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Nestlé PURE LIFE is available in a wide variety of packaging formats to suit all consumer
needs and consumption occasions. Packaging is innovative to meet the individual needs of
consumer all over the world.

The range of formats extends from the individual bottle for on-the-go consumption (0.33l to
0.5l), to the family size bottle (1.5l) and on to larger formats of 5 gallons (18.9l) for in-home
and office usage.

Nestle PURE LIFE 18.9-liter bottles have a protective cover, so that the consumer can
immediately define, that the product was delivered from the factory. Its proprietary design
equally protects the brand from counterfeiting.

Nestlé Pure Life¶s originality lay in the use of an all-new plastic, P.E.T. (polyethylene
teraphthalate), which is stronger and more elastic than the PVC. oesides, P.E.T. is recyclable.

Nestlé PURE LIFE is bottled when possible in the country, or at least in the region where it is
sold, combining the benefit of a local production and the strength of a worldwide brand.

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The label provides information like quantity, mineral contents, logo, manufacturing date and
best before date. Consumer service number is mentioned and stamp of PSQCA with license
number is also mentioned.

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Nestle Waters Coolers has been a part of Nestle Waters since 2003 and represents Nestle
Pure Life brand. Service quality has always been the main driver of HOâ business. They are
using television and radio advertisements in electronic media. In print media they are using
billboards, newspapers, pole signs and posters.

In big departmental store they have display corner in which Nestle Pure Life is refrigerated.
Moppies are also used for advertisement in these stores.

In summers direct marketing is used for promotion by providing cool points of Nestle Pure
Life where chilled Nestle Pure Life is available for instant drinking.

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Nestle Pure Life is a convenience good and is frequently used therefore it has been placed on
all big and small stores to make it available everywhere. The type of placement used for
nestle pure life is spot exchange.

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Nestle pure life is following brand pricing through which it provides functional and
psychological satisfaction to its target customer. The pricing strategy of Nestle Pure Life is
market skimming.

Prices of Nestle Pure Life are relatively higher than their competitors. Market prices of
individual consumables (0.33l to 0.5l) are Rs.10 and Rs.13. The price of family size bottle
(1.5l) is Rs.24 and of large bottles of 5 gallons (18.9l) is Rs.130

 

According to our analysis people do not believe that competitors of nestle are shrinking its
share because:

ÔY NESTLE has strong brand image on the basis of purity

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 ÔY NESTLE always segment the exact customers, e.g. all doctors prefer to use NESTLE
pure life water
ÔY CARE pharmacy do not believe that till now any of NESTLE competitors are
successful to compete on the basis of quality
ÔY Nestle has positioned among people as HEALTH provider brand




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ÔY Keep the taste nice
ÔY Increase advertising & show your competitive edge
ÔY Increase loyalty of customer with brand through attractive packages
ÔY Keep the price low, because the day when price will competitor will be very near to
your price your sales will be boost up.
ÔY Increase its distribution network
ÔY Try to get more & more party orders
ÔY Increase incentives & promotional activities
ÔY Training of people by regional head as a coach / team leader.
ÔY Training courses/workshops for team
ÔY Conduct training sessions of salesmen at least once a month at regional level.
ÔY Hiring of quality sales people is in process in Faisalabad city.
ÔY Re-define roles & responsibilities of every individual in order to bring ownership and
sense of responsibility.




  
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