Nestl Pakistan Limited is selected to study that how they have planned their marketing strategy for Nestl

Pure Life (water). Nestl is a multinational food company and offering Fast Moving Consumer Goods (FMCG). The motto of Nestl is Good Food, Good Life, so delivering the qualitative products to the customer is their main objective. It is offering 75 brands of bottled waters worldwide. Nestl Pure Life (NPL) is one of them that was first offered in Pakistan by Nestl Pakistan Limited in 1998. People felt need of Pure, safe and clean water because of impurities in water especially in the industrialized cities like Karachi, Lahore, Faisalabad etc. Nestl identified this opportunity and lunched NPL that satisfied the customer needs and Nestl become market leader in the water industry. The customers of NPL showed interest on NPL because of trust on Quality of Nestl, at the heart of which there are qualitative products and its long term commitment to deliver better products to consumers. Being the market leader, the market share of NPL is 78% that is much higher than its competitors. NPL is passing through its Growth stage (of Product Life Cycle) i.e. its sales are increasing tremendously and competitors are entering in the market like Aqua Fina by Pepsi and Askari Waters. There are different SKUs of NPL to cover a wide market needs like for Home and office delivery there are 3gallon and 5 gallon bottles (bulk usage) and for day to day usage easily carrying light weight like 1.5, 0.5, 0.2 liters bottles are available in the market. Still Nestl is working on bringing the changes and innovation in this field. For this it has close relationship with its suppliers and distributors to get their suggestion to improve the quality of NPL. Nestl Pakistan also has the Customer Service Department with the logo "Talk to Nestl" in Lahore to receive the complaints and suggestions from the customers. In this way Nestl analyze its market and becomes aware of the new market trends. Marketing strategy include 4 Ps strategy i.e. Product, Price, Place and Promotion strategies. Product is something that is offered to the market. NPL product strategy studies show that they are positioning the product with respect to its attributes that NPL is safe, pure, refreshing and healthy water. Nestl also does product line expansion; recently it has offered a 0.25 liter bottle of NPL in the market. Its also using the company name with its product name i.e. Nestl Pure Life. NPL round shape and elegance of the bottle are instantly recognizable. Quality is cornerstone of NPL success. Nestle people say: Quality is our more successful product and it is key to our success today and tomorrow. In Price strategy, Nestle has adopted the strategy of non-price competition. It is offering one price for NPL to all cities of Pakistan. It also keeps the check on distributors to maintain single price of NPL. It offers trade discounts to its distributors.

Placement is the distribution of the product to its customers at right time, in right quantity, at right price and at right place. To ensure this, channel adopted by the Nestl for distribution of NPL is as follows: Producer Wholesaler Retailer Consumer

NPL comes under the category of FMCG, so for this the timely supply is very important thats why Nestl is following intensive distribution strategy. Promotion is the very important and crucial element of marketing strategy as through it the company establishes its image in the minds of the customers. NPL is promoted by using different ways of promotion. Advertisement of NPL is done through TV, radio, billboards, newspapers and magazines. Current advertising slogans are that NPL is trust, hope and happiness and JIYO! Kay yahi hay Zindagi. Nestl also conducts the tradeshows, concerts, events, sponsorships, and discounts for sales promotion. For establishing public relations, Nestl distributes its newsletters, annual reports, calendars and diaries, lobbying, donation for charitable and civic events. For the victims of 8 October 2005 earthquake, Nestl has donated 90 trucks, which were containing different foods items, and NPL was one of them which is around Rs. 2 Billion. The Nestle organized its teams to distribute products to the effected areas and all employees contributed from top to bottm (MD himself was involved personally to distribute products physically)
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Mission Statement

Nestl's business mission 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.

Motto of Nestl is Good Food, Good Life.

Objectives Nestl does not favor short-term profit at the expense of successful long-term business development. 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.

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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.

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. Nestl continues to maintain its commitment to follow and respect all applicable local laws in each of its markets.

Nestl Pakistan Limited Nestl Pakistan Ltd. is a food processing company, which is registered on Karachi and Lahore stock exchanges. It established its first production unit in 1988 in Sheikhupura, Pakistan with the name of Nestl Milkpak Limited but its name has been changed and now it is called Nestl Pakistan Limited. Headquartered in Lahore, the Company operates five production facilities. Two of its factories in Sheihupura and Kabirwala are multi product factories, while another one at Karachi is already for production. One factory in Islamabad and two in Karachi produce bottled water. Through its effective marketing and a vast sales and distribution network throughout the country, it ensures that its products are made available to consumers whenever, wherever and however. Nestle Pakistan is a subsidiary of Nestle S.A.- a company of Swiss origin headquartered in Vevey, Switzerland.

Products with Years of Launch: 1981 Nestl Milkpak 1983 Nestl Butter 1986 Pakistan UHT Cream, Pakistan Desighee, Frost 1990 NIDO, CERELAC 1991 Nestl Rice, LACTOGEN 1, LACTOGEN 2 1992 Nestle EveryDay, Gloria, Maggi noodles 1994 MILO powder, NESLAC 1995 MILO RTD

1996 Nestl juices, POLO Mint, NESCAFE Classic 1997 Nestl KitKat 1998 Nestl TOFFO, Nestl Soothers, Nestl Pure Life 2000 Nestl Plain Yogurt 2001 Nestl Fruit Yogurt, Nestl NAN 1, NAN 2 2002 EveryDay liquid, 2003 BUDDY juices, Nestl Hi-Calcium Low Fat Yogurt, Nestl Hi-Calcium Low Fat MILK 2004 Nestl Raita, NESCAFE (3 in 1) Nestle pure life:

I have selected Nestl Pure Life (NPL) to study its marketing strategy, which is adopted by Nestl Pakistan Limited. Water is essential for life. It represents about 60% of an adult's body weight. While at first sight, there would seem to be enough water on our blue planet, in fact, barely 1% of the world's water is available for human and environmental needs. As the worlds leading food and Beverage Company, and the world leader in bottled waters, Nestl has a responsibility towards the sustainable use of water resources. This responsibility is embedded in Corporate Business Principles and in strategy for sustainability. Nestl began its entry into the water business in 1969. In 1998, for the first time in its history, Nestl associated its name with bottled water: Nestl Pure Life. The brand was launched in Pakistan and soon appeared in Brazil, followed by Argentina, Thailand, the Philippines, China, and Mexico in 2000. In 2001, India, Jordan, and Lebanon followed, and in 2002, Egypt, Uzbekistan and the United States. NPL bottled water is available in markets in several different sizes i.e. SKUs (Stock Keeping Units). These SKUs are of 5 gallon (18.9 liters), 3 gallon for direct home and office delivery and .2 liter, .5 liter, and 1.5 liter bottles. In Pakistan, Nestl water is strengthening Nestl Pure Lifes base of operations to meet the need of countys emerging need for clean, good-tasting water inconvenient sizes and packages to satisfy a familys requirements. NPL

is today number one water brand in Pakistan. Annual bottled water consumption per person varies widely throughout Asia, from 2 liters in Pakistan to 73 liters in Thailand, giving Asia strong growth potential for years to come. Nestl with headquarters in Vevey, Switzerland was founded in 1866 by Henri Nestl and is today the world's biggest food and beverage company. Sales at the end of 2005were CHF 91 bn, with a net profit of CHF 8 bn. Nestle employs around 250,000 people and have factories or operations in almost every country in the world.

How Nestl is positioning NPL? Nestl is a food company and its logo is Good Food, Good Life. The basic concept, which it is giving to its customers, is the quality food that if food would be good then life would also become good i.e. a good health. The name of mineral bottled water is Nestl Pure Life. This name itself conveys the message of the Purity to its customers. Nestl is has ever been trying to establish an image of purity and safety about its products. Through advertising campaign same message is being tried to communicate to the target customers who are health conscious and want to lead a healthy and happy life. The current slogan of NPL is JIYO! Kay Yehi Hay Zindagi. The message, which is conveyed to the customers, is that NPL is Hope, Happiness and Trust. The purpose of all these slogans and messages is to establish the image of pure and quality water in the minds of the customers on which they can trust and can get the happiness and make their life hopeful. Backed up by the best possible product quality and food safety standards, Nestl promotes consumer health and well being while at the same time adhering to regional traditions with regard to taste and pleasure. With the objective of ensuring optimal nutrition, Nestle takes into account the consumers increasing expectations with regard to food, but it also makes a contribution to good health and illness prevention that extends above and beyond the traditional concerns of sustenance, pleasure and convenience. In line with Nestls global philosophy, Nestl Pakistan is proud of its commitment to excellence in product safety and quality and to providing value and services to its consumers. Nestl Pakistan operates in many ways but people, products and brands are the main flag bearers of the Companys image. Nestl motivates the people to drink NPL by telling their customers about the importance of water, which is pure and safe (clean). Like; At Nestl, Quality is our first priority. Let us practice it every day.

3.4 Major Competitors

Competition typically is defined as among forms within an industry producing products that are substitutes for one another. Therefore, the identification and evaluation of marketplace competitors is a key element of strategic marketing and a vital element of the corporate survival. Nestl is the market leader in the water industry. It is the first company which launched bottled water for first time in Pakistan and thats why it has maximum market share than others because of being pioneer in this industry. It is also leading the other firms in new product introductions, distribution coverage, and promotional intensity. For different product categories there are different competitors of Nestl. Nestle pure life (NPL) major competitors at this time who are also offering their water product in market are following: Pepsi is offering Aqua Fina Askari water

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There are also other small competitors as well e.g. Classic, Nova etc which have very low market segements. According to market view, competition is defined as: The competition between the firms, which are satisfying the same customer, needs. So according to concept the competitors of NPL are all those companies, which are satisfying the need of thrust of the customers. Beverages companies like unilever, Tapal danedar, Pepsi, Coca cola etc. also come in this kind of the competition.

3.5 Market Share NPL share is 78%. Pepsi Aqua Fina share is 15% Askari Water has share of 2.9%. Remaining 4.1 % is for all other competitors.

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Nestl is committed to offering consumers high-quality food products that are safe, tasty and affordable. The Nestl Seal of Guarantee is a symbol of this commitment. To be successful in marketing, producers must need carefully planned strategies for their products. Now the question is that how Nestl has planned the product strategies for NPL.

4.2.1 Positioning the Product In relation to the attribute Nestl is positioning its water as pure and safe water, which is essential to good health. They say that Trust Nestl Pure Life and also Nestl pure life is Happiness, Hope and Trust, this is the message which they are giving in their advertising campaign. Nestle also claims that NPL is Pakistans favorite water and currently their slogan isJIYO! kay yehi hay zindagi. On basis of these, it is said that Nestl is positioning in relation to the attribute and quality of the product. Its basic foundation is unchanged from the time of the origins of Company, and reflects the basic ideas of fairness, honesty, and a general concern for people.

4.2.2 Product Line Expansion Product line expansion is accomplished by increasing the depth (variety of sizes, colors, models) within the product line. Nestl is offering variety of sizes in NPL product line, which are as follows: Retail line: 1.5 liters 0.5 liters 0.2 liters (Recently launched) Home and Office Line: It is also comes under Nestl Bulk category. 3 Gallon 5 Gallon The year 2005 saw the successful completion of yet another year of outstanding business for NESTL PURE LIFE both in retail with 0.5 and 1.5liter bottles with the introduction of a new product i.e. 0.2 liter bottle and direct home and office delivery with 19 liter bottles. The exceptional performance of the brand is the result of expanding national distribution and an increasingly loyal customer bases. The brand has revolutionized the Pakistani market by tapping

the real consumer need for pure, safe and healthy water and has successfully dominated a key strategic business in Pakistan.

4.2.3 Product Life Cycle Product life cycle consists of the aggregate demand over an extended period of time for all brands comprising a generic product category. Product life cycle is divided in four stages. Introduction: During introduction stage, sometimes called the pioneering stage, a product is launched into the market in a full-scale marketing program.

Growth: In the growth stage, or market-acceptance stage, sales and profits rise, frequently at a rapid rate. Competitors enter the market, often in large numbers if the profit outlook is particularly attractive.

Maturity:

During first part of the maturity stage, sales continue to increase, but at a decreasing rate. When sales level off, profits of both producers and middlemen decline. The prime reason is intense competition.

Decline: In this stage sales volume decreases and losses become grater than the profits. Small competitors normally quit from the market at this stage and only large and strong remain moderately successful in decline stage. NPL is at the growth stage of the product life cycle. Large and small both kinds of competitors are entering in the market. Sales volume and market share is increasing rapidly. Last year, the sales of water were 8000 tons and now this figure is raised up to 14000 tons.

4.2.4 Branding A brand is a name and/or mark intended to identify the product of one seller or group of sellers and differentiate the product from competing products. Branding reduces the price competition. Nestl is using following branding strategies:

The company name combined with a product name:

A Nestl brand name on a product is a promise to the customer that it is safe to consume, that it complies with all regulations and that it meets high standards of quality.

Branding for Market Saturation: NPL is categorized as NPL Home and Office (HOD) in bulk (in gallons) and NPL for retailers i.e. easily carrying bottles of small sizes. These multiple brands are necessary to penetrate separate target markets.

4.2.5 Packaging, Design, Color Packaging consists of all the activities of designing and producing the container or wrapper for a product. Packaging is intended to serve vital purposes: Packaging connotes pleasure and attraction. By adding value to the product, the shape of the bottle contributes to building brand identity. NPL round bottle and the classic elegance of bottle are instantly recognizable. Constant research into materials and styles generates innovative packaging in ever more attractive shapes, textures and colors. Renovation in design, graphic identity and labels helps set new standards and energize brands by anticipating trends in consumer tastes. By adopting a new dynamic design, a renovated and modernized square bottle is lunched by success. Beyond the basic requirements strength, water tightness, etc. ease of daily use is a subject of regular research. Innovation in this area can focus on transportation convenience, making the pack more comfortable to carry the bottle. Packaging is an essential protection. It guarantees product safety and quality from manufacturing through warehousing and distribution up until the end consumer. It is particularly crucial in preserving waters original purity over time. Several of Nestl Waters research programs aim to optimize material performance, while a battery of tests and ever more innovative capping techniques guarantee consumer safety on a daily basis. In addition to this primary role, packaging fulfils several complementary functions, including product identification and enhancement, practicality, consumer information, functionality to suit changing lifestyles, and so on. Given greater diversity in packaging types and quality, along with the emergence of new consumption patterns, packaging must also meet new ecological challenges. In this context, Nestl Waters continue its efforts to develop more environmentally friendly bottles. This responsible corporate policy relies on a dual approach: reducing both packaging weight and energy requirements during the manufacturing process while considerably increasing the quantity of material recycled. Nestl. Packaging practicality is a key factor for

4.2.6 Labeling A grade label is used in case of NPL. Grade label identifies the products judged quality with a letter, number, or word. Nestl is using different phrases words to show the quality of the product. Like Trust, Happiness, Pure, Pakistans favorite water, safe, healthy and Premium drinking water.

4.2.7 Quality Theres no agreement on a definition of product quality, even though it is universally recognized as significant. Quality is a relative term and it varies from person to person due to the personal interests; what one likes, another may dislike. But one thing is common that when an organization fulfills the expectations of the customers through its products then the image that organization is established as a quality-delivering organization. The same case is with NPL it is satisfying the needs and expectations of the customers through its standardized products. Everyday, millions of people all over the world show their confidence on Nestl by choosing Nestl Pure Life. This confidence is based on quality image of Nestl and a reputation for high standards that has been built up over many years. Nestl commitment to product quality remains the corner stone of its business philosophy. In Pakistan too the Company has all along been committed to achieving the highest quality of its products. As a part of this effort, in 1993, the Company embarked upon the farm to table quality concept the guarantee about the quality of Nestl products up to the time of consumption by the consumer. Nestl expect this concept to result in its product becoming the product of choice for its consumers.

Quality is the cornerstone of NPL success:

Every product on the shelf, every service and every customer contact helps to shape this image. A Nestl brand name on a product is a promise to the customer that it is safe to consume, that it complies Quality is the cornerstone of success. Every product on the shelf, every service and every customer contact helps to shape this image. A Nestl brand name on a product is a promise to the customer that it is safe to consume, that it complies with all regulations and that it meets high standards of quality. Under no circumstances will we compromise on the safety of a product and every effort must be made to avoid hazards to health. Likewise, compliance with all relevant laws and regulations is a must and is not negotiable. People, equipment and instruments are made available to ensure safety and conformity of Nestl people says: Nestl NPL at all times.

Quality is our most successful product. It is the key to our success, today and tomorrow. Natural or treated, all of Nestl Waters bottled waters undergo the same strict quality controls and adhere to different local and international regulations linked to their specificities.

Based at the Product Technology Centre (PTC) in Vittel in France, the Central Laboratory carries out over 200,000 chemical and microbiological analyses every year. Linking two regional laboratories, the Central Laboratory is not only a quality guarantee of the resource and the final product, but also a centre of expertise for the hundred Nestl Waters production sites.

Nestl has the internal advertising department as well as hire the services of the external Media manager assisted by its assistant to devise all campaigns

4.5.1.2 Sales Promotion It is demand-stimulating activity designed to supplement advertising. It is paid for by the sponsor and frequently involved a temporary incentive to encourage a sale or purchase. Many sales promotions are directed at consumer. Nestl has designed it in away to encourage the companys sales force or other members of the distribution channel to sell products more aggressively. Nestl Pakistan limited arranges concerts, trade shows, event sponsorship, instore displays, and discounts. In Nestl, a separate sales department is working. The function of this department is to taking the sales orders, visiting the market, collecting the customers complaints and transferring to the concerned department. They also make sure the availability of the NPL to the consumer at right time and at right place.

4.5.1.3 Public relations It encompasses a wide variety of communication efforts to contribute to generally favorable attitudes and opinions toward an organization and its products. Unlike most advertising and personal selling, it does not include specific sales message. The targets may be customers, stockholders, a government agency, or a special-interest group. Public relations can take many forms, including newsletters, annual reports, lobbying, and support of charitable and civic events. Nestl is following all above mentioned public relations forms: The company assists through donations such hospitals and organizations that provide services to the poor and responds to distress calls by the government and NGOs for assistance to victims of flood, earthquake, drought and other natural calamities.

The company arrange mil program for undernourished and sick children and mothers through several NGOs and charitable organizations. The company has initiated a tube well and hand pump installation scheme in selected rural areas. It donates computers to schools for disadvantaged children run by NGOs and charitable organizations. To support the spread of education in rural areas, it undertakes Refurbishment Program of Govt. operated primary and middle schools. The Company regularly sponsors sports and cultural events, such as the International Polo Tournament and SAF Games in the recent past. The company gives the extra gifts, calendars and diaries to the employees and customers for public relations.

4.5.1.4 Publicity Publicity is also a promotional method used by the Nestl. Publicity is specific form of public relations that involves news stories about organization or its products. Like advertising, it consists of an impersonal message that reaches a mass audience through the media. But several features distinguish publicity from advertising. The company does not pay for it and it has little or no control over this and it appears as news and therefore has grater credibility than advertising. The company seeks for good publicity and frequently provides the material for it in the form of news releases, press conferences, and photographs. When a picture of a companys CEO appears on the cover of business publication and it accompanied by a flattering article in the magazine, it is often attributable to the efforts of the firms public relations department.

4.5.2 Integrated Marketing communication Nestl is using the integrated marketing communication system. In this, company is trying to coordinate all promotional efforts make an effective impact on the customer mind and to deliver a consist message. The Nestl has incorporated several different promotional campaigns. Depending upon the objectives and available funds, it undertakes simultaneous local, regional, national, and international programs.

Findings and Recommendations

This is competitive world and must never forget that customers have a choice. If they are not satisfied with a Nestl Pure Life, they will switch to another brand. The pursuit of highest quality at any price is no guarantee for success, nor is a single-minded cost-cutting approach. Lasting competitive advantage is gained from a balanced search for optimal value to customers, by simultaneous improvement of quality and reduction cost.

Success can never be taken for granted. Nestl must watch and learn from its competitors. If they do something better, Nestle must improve its own performance. Nestle can achieve competitive advantage through Quality. Progress is followed by listening to Nestle customers and by measuring its works performance. Shortcomings and mistakes must be analyzed and corrected. Problems must be anticipated and prevented before they occur. Nestle also must identify and take advantage of opportunities. To stand still is to fall behind. So Nestle must strive for continuous improvement in every area. It is through many small improvements as well as through major breakthroughs that Nestle will achieve excellence. We have observed from our extensive hard-work to compile these pages and after visiting the organization that the company is eager to serve consumers at its every possible level, consumer services department is the evidence of such a pursuit from the organization point of view. Presently the company is market leader in its category but it shouldnt take it as a complacent attitude rather capitalize on its good brand equity and to improve its quality of product to reap not only more profits for the shareholder but also serve the humanity by providing them healthful water which in other way a noble & sacred job. The company can fulfill this job by having such a spirit following it religiously by incorporating it all the marketing strategies

Water is an essential part of life, and we work with the communities to protect this resource. We all have an important role to play.