Brand Audit

Submitted to: Kashif Malik

Submitted by: Fizzah Khalid Butt Kiwan Haider Saad Saud Riaz Umer Hafeez L1F11MSMG0014 L1F11MBAM1097 L1F11MBAM1093 L1F11MBAM1096

Of Nestle Fruita Vitals

Table of Contents
NESTL..................................................................................................................................................... 2 HISTORY OF NESTL ............................................................................................................................ 2 NESTL IN PAKISTAN ........................................................................................................................... 5 Nestle Fruita Vitals .............................................................................................................................. 8 Brand Elements ..................................................................................................................................... 11 Product strategy................................................................................................................................ 11 Positioning ........................................................................................................................................ 12 Points of Parity ...................................................................................................................................... 12 Points of Differences ............................................................................................................................. 12 Areas of Improvement .......................................................................................................................... 13 SWOT ANALYSIS: ............................................................................................................................... 13 Target Market ................................................................................................................................... 16 Integrated Marketing Communications............................................................................................ 17 Sources of Brand Equity .................................................................................................................... 18 Brand Equity ...................................................................................................................................... 18 Measuring & Monitoring Brand Equity done by Nestle:................................................................... 18 Tools & Procedures ........................................................................................................................... 19 Brand name knowledge, awareness, recognition, recall .................................................................. 19 Position understanding ..................................................................................................................... 19 Persona recognition .......................................................................................................................... 19 Our Brand Audit of Nestle Fruita Vitals health Assessment: ........................................................... 19

NESTL
Nestl with headquarters in Vevey, Switzerland was founded in 1866 by Henri Nestl and is today the world's leading nutrition, health and wellness company Nestl employ around 283 000 people and have factories or operations in almost every country in the world. The Company's strategy is guided by several fundamental principles. Nestl's existing products grow through innovation and renovation while maintaining a balance in geographic activities and product lines. 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. Nestl demonstrate through their way of doing business in all the countries where they are present a deep understanding of the local nature of nutrition, health and wellness. Nestl know that there is no one single product for everyone, thier products are tailored to suit tastes and habits wherever people are. Nestl has more than 500 factories in 86 countries.

HISTORY OF NESTL
1866-1905 In the 1866 Henri Nestl, a pharmacist developed a food for babies who were unable to breastfeed. His first success was a premature infant who could not tolerate his mother's milk or any of the usual substitutes. People quickly recognized the value of the new product, after Nestl's new formula saved the child's life, and soon, Farine Lacte Henri Nestl was being sold in much of Europe. 1905-1918 In 1905 Nestl merged with the Anglo-Swiss Condensed Milk Company. By the early 1900s, the company was operating factories in the United States, Britain, Germany and

Spain. World War I created new demand for dairy products in the form of government contracts. By the end of the war, Nestl's production had more than doubled.

1918-1938 After the war Government contracts dried up and consumers switched back to fresh milk. However, Nestl's management responded quickly, streamlining operations and reducing debt. The 1920s saw Nestl's first expansion into new products, with chocolate the Company's second most important activity 1938-1944 Nestl felt the effects of World War II immediately. Profits dropped from $20 million in 1938 to $6 million in 1939. Factories were established in developing countries, particularly Latin America. Ironically, the war helped with the introduction of the Company's newest product, Nescaf, which was a staple drink of the US military. Nestl's production and sales rose in the wartime economy. 1944-1975 The end of World War II was the beginning of a dynamic phase for Nestl. Growth accelerated and companies were acquired. In 1947 came the merger with Maggi Seasonings and Soups. Crosse & Blackwell followed in 1960, as did Findus (1963), Libby's (1971) and Stouffer's

(1973). Diversification came with a shareholding in L'Oral in 1974. 1975-1981 Nestl's growth in the developing world partially offset a slowdown in the Company's traditional markets. Nestl made its second venture outside the food industry by acquiring Alcon Laboratories Inc.. While trying to deal with unstable economic conditions and exploring its new ventures, Nestle faced the crisis of an international boycott. Controversy and Criticism Some of Nestl's past and current business actions have attracted widespread criticism. The most prominent and well documented controversy concerns its methods of marketing of processed cow's milk or baby formula (infant or more recently follow on formula) as a substitute for breastfeeding, to mothers across the world including developing countries. Promotion in economically disadvantaged countries is of particular concern. Nestl's activities attracted worldwide attention during the Nestl boycott of 1977. The company's marketing and PR teams have worked to improve the public perception of the company's activities concerns over the years, launching some Fairtrade products in the interim, and several grind-at-home Fairtrade coffees in Sweden, which led to a new round of criticism. 1981-1995 Nestl divested a number of businesses1980-1984. In 1984, Nestl's improved bottom line allowed the Company to launch a new round of acquisitions, the most important being American food giant Carnation. 1996-2002 The first half of the 1990s proved to be favorable for Nestl: trade barriers crumbled and world markets developed into more or less integrated trading areas. Since 1996 there have been acquisitions including San Pellegrino (1997), Spillers Petfoods (1998) and Ralston

Purina (2002). There were two major acquisitions in North America, both in 2002: in July, Nestl merged its U.S. ice cream business into Dreyer's, and in August, a USD 2.6bn acquisition was announced of Chef America, Inc. 2003 to Onward The year 2003 started well with the acquisition of Movenpick Ice Cream, enhancing Nestl's position as one of the world market leaders in this product category. In 2006, Jenny Craig and Uncle Toby's were added to the Nestl portfolio and 2007 saw Novartis Medical Nutrition, Gerber and Henniez join the Company.

NESTL IN PAKISTAN
Nestl Pakistan is a standard-bearer of Nestl S.A.s global performance and registered on the Karachi and Lahore stock exchanges. For the past five years Nestl have been declared one of the top 25 companies on the Karachi Stock Exchange. Headquartered in Lahore, Nestl serve both Pakistan and Afghanistan. Of their five production facilities, two manufacture a wide range of products. The remaining three produce Nestl Pure Life. Nestl has been serving Pakistani consumers since 1988, when their parent company, the Switzerland-based Nestl SA, first acquired a share in Milkpak Ltd. Today Nestl are fully integrated in Pakistani life, and are recognized as producers of safe, nutritious and tasty food, and leaders in developing and uplifting the communities in which we operate.

Nestl Pakistan ensures that our products are made available to consumers wherever in the country they might be. Convenience is at the heart of the Nestl philosophy, and their aim is to bring products to people's doorsteps. Since Nestl started investing in Pakistan 18 years ago, the company has established the country's largest milk collection network. Today, Nestl collects milk from 140,000 farmers over an area of 100,000 square kilometers in Punjab who, as a result, receive over CHF 120 million per year directly from the company. Nestl is Pakistan's largest consumer goods company with sales of around CHF 500 million in 2006. The company has five production facilities in different parts of Pakistan: two multiproduct factories in Sheikhupura and Kabirwala, respectively, and three bottled water plants, one in Islamabad and two more in Karachi.

Sheikhupura factory

Kabirwala factory

Over the years, Nestl has created over 10,000 direct and indirect jobs in Pakistan. The company estimates that a million people earn their living with Nestl in Pakistan, from employees, farmers and distributors to suppliers, transport companies and retailers. Peter Brabeck-Letmathe, Chairman and CEO of Nestl, said:

"Pakistan is a great country, the fourth largest milk producer in the world. We very much hope to continue having the privilege of being part of Pakistan's economic growth for many years to come."

MDs MESSAGE
As a subsidiary to Nestl S.A., whose headquarters are based in Vevey, Switzerland, we are committed to providing you, our consumer, with quality food products that are essential to good living. It is very clear that eating a nutritious and balanced diet lies at the foundation of a happy and healthy life. We, therefore, invite you to look at our special features where you will be sure to find advice aimed at improving the quality of life for both you and for your family. Since 1867 when Henri Nestl developed a food that helped save a life, the Nestl Company has aimed at building a business based on sound human values and principles. In Pakistan, we have continued with this spirit and are directly involved with local communities and key stakeholders in order to help improve conditions for those in less fortunate positions. Trevor Clayton Managing Director

Brand Audit
INTRODUCTION: We are conducting brand audit of Nestle Fruita Vitals. It is one of a successful brand of Nestle Pakistan. Brand Audit Objectives: Our objectives of brand audit are to assess the health of the brand, uncover its sources of equity, and suggest ways to improve and leverage that equity

Nestle Fruita Vitals

History of Nestle juices
A well-known brand, FROST was introduced in 1986 and has the largest share of the countrywide market. Positioned as a cold drink and alternate to cola drinks, its strength lies in the convenience attached to its usage. NESTLE JUICES Encouraged by the consumer response to NESTLE ORANGE JUICE that was launched in 1996, the category of NESTLE juices was expanded with the introduction of Mango-Orange and Mango flavors in the year 2000. This has further strengthened the position of Nestle as leader in the value added/premium drinks market. Consumer response to these new flavors has been very upbeat and is expected to gain further. Now nestle company have launch following juice brand in Pakistan. Indulge in the pure pleasures of a healthy life! Nestl brings you a range of juices that will scintillate your taste-buds and add variety to suit every moment. NESTL Pure Orange Juice

Oranges are in demand not only for their divine juicy flavor but equally celebrated for their health benefits. They are naturally low in calories, and an excellent source of Fiber and Vitamin C. Squeezed from the finest handpicked oranges, 100% pure NESTLE Pure Orange Juice has no added sugar and is a good source of Vitamin C. Having Orange juice everyday is a great way of strengthening the body resistance against infections and diseases and maintaining a healthy lifestyle. NESTL Clear Apple Nectar Apples have no fat and are cholesterol free. NESTLE Clear Apple Nectar is made from the finest Apples and is 100% clear. As irresistible as sin itself give in to the amber kick of NESTLE Clear Apple Nectar. NESTL Red Grape Nectar Grapes also called the queen of fruits are known for their great internal body cleansing properties. They are a good source of Vitamin C and Potassium that plays an important role in proper heart functioning by regulating blood pressure and heart beat.

Relish the full-bodied, smooth flavor of NESTL Red Grapes Nectar and let your taste buds soak in the sensuous richness of Red Grapes. NESTL Pineapple Nectar Pineapples are good source of Vitamin C, an antioxidant that helps fight against free radicals, one of the main reasons for aging. Made from premium pineapples, NESTL Pineapple Nectar brings you the exotic taste of pineapples with a refreshing tropical flavor and is a good source of Vitamin C. NESTL Mango Orange

Sink into Fruity Refreshment Feel the burst of fruity fun and discover the flavors of NESTL Mango & NESTL Mango Orange fruit drink made with the juiciest, sweetest Mangos and racy, sharp Oranges to sass up your taste buds. NESTL Chaunsa Nectar Nestle Chaunsa Nectar is prepared from the finest quality Chaunsa mangoes that are procured from the best fruit farms. The 100% rich mango nectar is nutritious, refreshing and wonderfully delicious. It helps to replenish the lost vigor during workouts and enhances your fitness by providing fortified energy endowed with dietary fiber, Vitamin A, C & E. NESTL Guava Nectar A chilled glass of pink Nestle Guava Nectar is not only great tasting but is also wholesome in antioxidants making it very nutritious. Nestle Guava Nectar is rich in Vitamin A, Vitamin B, Vitamin C and Niacin and due to excessive fiber content it is an effective fat burner.

NESTL Mango Feel the burst of fruity fun and discover Nestle Mango fruit drink made with the juiciest, sweetest mangos to sass up your taste buds.Now that is a sweet deal!

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Brand Elements
Logo: Nestle has made its logo with a combination of red and white and blue as it is visible on all the packs of different juices. As they are in accordance with the colour of relevant fruit.

Colours: All packs are of different colours in accordance with the fruit, they are made up of. Tag line: Nestles tagline is DIL SE. according to MR AKHTAR who did repackaging of nestle fruita vitals said that DIL SE" tagline was chosen to create a quick Love Mark. Brand Associations: The Ad is clearly positioned on the youth--the college going boys and girls unlike their previous ads which were focused on mothers or home culture.

Product strategy
Core benefit Customer can fulfil his/her need of thirst Basic product The Basic Product is fruit Juice Excepted product Normally customers want to drink a juice with greater taste and flavour which Nestle is already providing with its great and pure juices. Augmented product Nestle says, our juices taste and flavour is according to the customer expectations because we provide 100% pure juice. We have no compromise with quality. We try to provide maximum

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quality and satisfaction to the customers. Quality is our guarantee and we promised to the customers that we stop the product rather to low the quality of product. Potential product In future Nestle might introduce new pulp juices in the market. They might launch special juices for sports men and professional working people.

Positioning
Brand strategy is at the heart of marketing strategy. It is the act of designing the company offer and image so that it occupies a distinct and valued place in the target customer mind. Nestl brings you a range of juices that will scintillate your taste-buds and add variety to suit every moment.Nestle Fruita Vitals has certainly got active on right time. We see great merchandising at stores by them after the launch of Fruita Vitals and have gotten more active on television commercials, and billboards are seen all around. Nestle positioned itself as one of the superior brands in the local market currently. It has differentiated itself from others by launching its new range of juices under the umbrella of NESTLE FRUITA VITALS. This has made Nestle a market leader in the fresh juice industry of Pakistan. People have started to perceive Nestle a brand that matches the quality of imported juices with almost the same pricing that other imported juices are offering.

Points of Parity
High Quality Quality taste Tetra packing Similar Distribution Channel

Points of Differences
100% pure juice Enhanced nutrition Revitalizing Differentiation

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Convenient Packaging High Price

Areas of Improvement
Nestle can improve itself more by bringing its prices down and sell it on competitive prices in order to enhance the market share and to capture the lower middle class also. This will surely increase its sales and it can also tap the uncovered market that will be only covered by low quality brands such as country, shezan and tops. Nestle being the market leader can surely penetrate this market and bring out the great deal out of this. Higher prices sometimes discourage the youth as they are the main target market of the Nestle Fruita Vital because students do not have that much money to spend on themselves, which mainly makes them lose the major chunk of potential population that can be their buyer if the prices are slightly lowered down as compared to other competitors.

SWOT ANALYSIS:
Strengths:
1. Company Image Nestle company has a great image in the mind of people. Nestle company has worldwide reputation. 2. Quality Conscious Nestle produce a good quality products. It cannot compromise on quality. 3. Well-developed strategy Nestle has recognizes there is a right time and place for their product; therefore, their strategy makes room for adjustments 4. Market Share Nestle juices has a highest market share i.e. 60% in juices market.

5. Good marketing skills and services

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Nestle is now a days working on this concept because they want to increase their market share. They are providing quality products to the customers that include their services and products. 6. Brand strength - In Pakistan Nestle has some very strong brands like Nescafe, Maggie, Cerelac, nestle water and these brands are almost generic to their product categories. 7. Research &Development Research and development department keeps Nestl in continuous knowledge about itself and competitors. It has a competitor advantage because many local juices have no research & development department. 8. Product innovation The Company has been continuously introducing new products, thus expanding its product offerings. 9. HR department Nestle company has a strong HR department.

Weaknesses
1. Storage ability Nestle juices are not store able for long time.

Opportunities
1. Support foreign investors Government support foreign investors to invest in Pakistan. 2. Scientifically gas This is great opportunity for nestle company. Because in coming future nestle take the benefits of uses the scientifically gas.

3. Changing Social Trend

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Consumers in urban areas use drinks on a regular base as they increasingly adopt Western lifestyles, especially the younger generation which is highly influenced by the Western media. Younger consumers tend to follow Western eating and drinking habits. There was an increase in demand for functional drinks over the review period. 4. Health conscious Increasing health and hygiene awareness among Pakistanis has greatly increased sales of fruit/vegetable juice products. Both the government and the media have started health awareness campaigns to make Pakistanis realizes that consumption of fruit/ juices is as essential as eating food. Fruit/ juices are doing very well in both urban and rural areas 5. Global hub Since manufacturing of some products is cheaper in Pakistan than in other South East Asian countries 6. Market growth Juices market expands very fast .A new research proves that in future (2012) every person will use 85.5 liters juices per years. 7. Limited options in real fruits juices Limited options in local produced real fruit juices.

Threats
1. Government Regulation Government regulations are changing everyday which may create problems. 2. Increase in competition There is large competition in juices market

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3. Entry barrier There are no entry barriers so a large numbers of local juices are entering in juices market 4. Labor coast Increased labor cost 5. Inflation rate Inflation rate is increasing very fast.

Target Market
Nestle is targeting the people of all the ages for its juices. As juice is a product which is likable and suitable for every single person whether he is a young person, aged or a kid. Different flavours provide variety. So it can be said easily that its target marketing is from 1 year to 60 and above. Nestle has created product packaging according to the need and use of people which is,

For Travelling occasions: Usually People like to drink during travelling as they want something to fulfil their thirst and juice is only thing which has a good packaging that it can be carried anywhere easily.

For domestic use: Nestle has large packaging for domestic use, which people are using while eating at their home or using it for certain occasions.

Size of Product, Targeting customers: 200ml 1000ml For Travelling and occasional For domestic use

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Nestle is first company who launch these two packing in juices who provide the satisfaction more as compare to competitors

Integrated Marketing Communications

Nestle company use different sources to communicate their target market. Nestle use these sources to communicate its product to its customer to make them aware of their products are : TV ads Newspapers Billborard Packages of their other products When launch the new juice or new sale promotion for the juice then they spread the awareness about their brand through following communication strategy. Communication objective Nestle company use different sources to attract their target customer. The objective of Nestle to communicate its product is to make its customer aware and to compete in marketing properly. Nestle also tells their customer that nestle provide pure juices to their customers. Nestle also give the knowledge of nestle juices that they give you energy and good taste. Nestle also give message that nestle juices are good for your health. Communication strategy of competitor Nestles main competitor is shezan juice. shezan also use the same communication strategy which adopted the nestle juices. Shezan is also advertising through TV, new papers, billboard. Adds in TV channel Nestle juices give ads on different TV channel at different time .Nestle management has it in their mind that which channels their target audience usually watchand what type of customer they want to attract and what time they sit before TV. Nestle juices have different timings on different channel aligned with the favourite shows of their target audience. . Nestle juices give ads on PTV home, GEO, ARY, Masala Tv, Hum and PTV news.

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News papers Nestle company advertise their juices through newspapers. Large numbers of customers have reading habits of newspapers, so nestle use this media to attract their customer. Billboard Nestle juices attract their customer through billboard. Nestle company select the main cities of country and those places where large numbers of customer easily attract. Nestle has policy to use 500sqr.ft in each region. Packaging of Other Products: Nestle used the packs of Milk Pak to introduce and advertise their upcoming brand.

Sources of Brand Equity

Brand Equity It is defined as brands power derived from goodwill and name recognition it has earned over time and which translates into higher sales volume and higher profit margins against competing brands.

Measuring & Monitoring Brand Equity done by Nestle:

At Nestle the management is well aware of the metrics which are being used today by other companies and realizes that it is important for any business to be able to measure its performance in an appropriate manner so that strategies can be developed accordingly and decision making can improve. The metrics listed below are used by the different brand teams of the Nestle portfolio.

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Tools & Procedures

Brand name knowledge, awareness, recognition, recall
Consumers are asked to identify the brand in various ways and this indicates the strength of the brand. Tracking reports are created which identify the awareness of Brands along with consumption of the Nestls brands.

Position understanding
By administering questionnaires, focus groups and other techniques the target market is asked questions about the brands positioning and selling message. This is done to know if the idea has been clearly conveyed and if the targeted customers are responding to the marketing campaigns in the manner desired. It is important for the marketing team to monitor if a particular campaign is running successfully or not, and accordingly it decide to either continue the campaign, or discontinue it, change it.

Persona recognition
This information is very useful to brand managers at Nestle as they need to find out how their brand is perceived and whether this needs to be adjusted or not. For this research agencies carry out focus groups and other techniques on random samples of the target market asking them various questions and then develop a persona from the answers obtained. Media tracking takes place here and periodic analysis are conducted to develop the brand persona and then analyze it.

Our Brand Audit of Nestle Fruita Vitals health Assessment:

We developed a simple questionnaire and asked different people that how they feel about nestle fruita vitals. Results are given below:

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Q1: what comes first in your mind when you think of Nestle Fruita Vitals:

Ad 12% Tagline 8% Quality 30%

Packaging 28% Taste 22%

Interpretation:
People said that whenever they think of Nestle Fruita Vitals the first thing that comes to their mind is quality which is associated with nestle and products of nestle whereas other people said packaging is the thing which is first thing.

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Q No 2: How do you like new packaging?

Bad 9%

Very Good 16%

Average 36% Good 39%

Interpreation:
Nestle re-launched itself because it was going down previously and it focused on its packaging and when we asked people about it 39 % said it is good which is the highest scored answer so nestle can work more on it to make it very good.

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Q no 3: What is your preference for juice?

Column1
All Pure 13%

Twist 28%

Fruita Vitals 42%

Olfrute 17%

Interpretaion: Majority of people we surveyed, said that Nestle fruita Vitals is their first choice in juices.

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Q no 4: How much attractive do you find F.V tagline ( Dil Se)

Motivational 10%

Attractive 18%

Easy To Pronounce 30%

Understandable 22%

Precise 20%

Interpretation: Highest percentage of people said that it is easy to pronounce which is not a very good thing for a brand that its tagline is easy to pronounce instead of being attractive so this area should be considered.

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Q no 5: Rank the taste of F.V relative to your competitor?

Bad 12% Very Good 21%

Average 27%

Good 40%

Interpretation: 40 % people said its taste is good in comparison with competitors and only 2 % said it is bad so it can create loyalty for the brand.

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Q no 5: Rank the quality of F.V relative to your competitor?

Very Bad 6% Bad 7%

Very Good 23%

Average 27%

good 37%

Interpretation: Its quality is considered very good by 23% and good by 37%.

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Q no 6: Rank the price of F.V relative to your competitor?

Bad 26%

Very Good 8%

Good 22%

Average 44%

Interpretation: Price is considered as a very important factor in a price sensitive market like Pakistan so as Nestle Fruita Vitals has its price equal to others so majority of people rate its price as average.

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Rank the promotion of F.V relative to your competitor?

Sales

Average 21% Very bad 1% Bad 3% Very Good 40%

Good 35%

Interpretation: Majority of people said that its promotion is very good as it is promoted countrywide on a large scale.

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Q no 9: are you satisfied with flavours?

No 30%

yes 70%

Interpretaion: 70% people said that they are satisfied with the flavours Nestle F.V currently offering.

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Q no 10: Do nestle fruita vitals comes in your mind when you think of juices?

No 14%

Yes 86%

Nestle fruita citals has been able to coreate a strong association in uice market as 86% people said that they think of F.V when they read or hear of juice.

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Q no 11: which flavour do you prefer?

Orange 11% Grapes 32%

Chaunsa 35% Apple 9% Mango 13%

Interpretation: F.V is providing a number of flavours and majority of people said they go for a Chaunsa sip!!!!!!!!!!!! Other favourites are grapes and mango.

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Conclusion:
After doing a brand audit of Nestle Fruita Vitals, we came to know that it holds a strong position in market and is liked and preferred by many. Nestle Team should now focus on the pricing strategy so people find it more intreseting and good to spend on Nestle Fruita Vitals.

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References:
www.nestle.com.pk www.scribd.com

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