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TABLE OF CONTENTS
2 Nestle juices
Executive summary
Nestle foods was established in 1866. Since then it has continued to
provide quality products to its customers with products and packaging
innovations. Nestle juices is Pakistans number one and fastest growing
food company. The company is trying their level best to differentiate
themselves from other local companies and trying to win the competition
in juice industry by adopting the modern trends and technologies in both
operational fields as well as in marketing of their products.
In this detailed project we covered all most all the topics related to the
marketing plan. First of all we presented the companies history and
introduction which included the year of formation and certain steps the
resulted in the todays form of Nestle. We describes value chain analysis
PEST analysis about nestle juices and our brand competitor .And the
next step we do experiment about SWOT analysis who its effect on our
brand .so we described MARKET analysis, competitor analysis,
analysis buyer behavior , hierarchy of organization goals and the next
step to STP of nestle company ,so we explain product strategy , price
strategy and distribution strategy ,communication strategy and other
things related to a marketing plan such as marketing budget and last of
our project sale forecast for last 5 year.. Innovative technology, ,
Globalization, Matrices, , Financial Review, Porters five model,
Industrial analysis, Five Ws and Future Plans Of Company.
3 Nestle juices
4 Nestle juices
INTRODUCTION AND HISTORY OF COMPANY
History
In the 1860s 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
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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..
1981 -1996
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 Carn tion.
1996+
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.
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Nestle Today:
Today, after 142 years it was first used, the nest continues to be the corporate
Identity of Nestle as the worlds leading Food Company and remains the symbol of
quality. Nestle, the symbol of quality and commitment in the field of food products.
Nestle is the world No.1 food company. It is the 5th largest company in the world
according to its turnover. It is present on all five continents, has an annual turn-over
of 70 billion Swiss francs, runs 522 factories in 81 countries, 200 operating
companies, 1 basic re- search center and 20 technological development groups and
more than 231,000 employees 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 de- voted to professional training and to the
integration of the company in its economic and social environment.
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
7 Nestle juices
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.
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.
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NESTL Pineapple 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.
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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.
Mission statement
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VISION
Explore all over the worlds-from baker to babies, parents to pet owners
single servings to catering: providing for all their needs always with the
assurance of outstanding quality.
Resources
Management
Responsibility Documentation
Continuous Maintaining
Improvement &
Measurement
Management Corrective
Audit Action
Review Quality
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Our selected brand is nestle orange juice, to analyze the specific activities through
which firms can create a competitive advantage; it is useful to model the firm as a
chain of value creating activities. Michael porter identified a set of interrelated
generic activities common to a wide range of firms. The resulting model is known as
the value chain and is depicted below.
Primary activities
Inbound logistics
Major raw materials of nestle orange juices are different pulps of orange such from
Germany and France. Nestle company is being getting there raw material from local
market in the Pakistan. Nestle juices included their ingredient such as fresh fruit
nectar of mango, apple, pineapple, orange, included their fresh juices.
Nestle imported all machinery and formulas who is the advantage of nestle company.
Operation
PRODUCTION PROCESS
Fruit juice production procedures involved in fruit juice manufacturing depending on
What type of the juice the unit is going to make. For the purpose of this -feasibility,
we propose the 4% token juice drink of Citrus fruit (Orange), Mango and pineapple.
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Boiling of fruit
Storage in Tank
Ingredients mixing
Syrup Storage in Tank
Juice Preparation
Juice Storage Tank
Filling and Packaging
Cooling and Storage
In the following pages the process flowchart and brief description of the various
Processes involved in fruit juice production are outlined.
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14 Nestle
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Out bound logistic
In Nestle Company the activities that include in outbound logistics are, they establish
their sale and distributive offices in big cities like Karachi, Lahore, Islamabad, Faisal
bad, Gujranwala etc. and also hire suitable distributors on agreed profit margins.
Who bought from nestle office of the city and try to distribute to the each retailers
and shop keeper in the city.
Services
Company established the customer center in each office in a city. And also given toll
free number as a help line number which means that if customers feel any problem
then they can contact through our help line.
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Strong customer relationship
Identify need of customer like new taste new fruit item
Maintain market leadership by maintaining the pure quality
Provide juices which are fit for human body
Stop brand selling dont reduce quality
Quality is our grantee
Supportive activities
The primary value chain activities described above are facilitated by support
activates. Porter identified four generic categories of support activities, the details of
which are industry specific.
COMPANY STRUCTURE
Nestl head-office in Pakistan is in Lahore. It also has its registered office in Lahore.
Nestl has divided the whole Pakistan in to three zones.
Northern Zone
Central Zone
Southern Zone
Nestl has 8 regional offices in all over the Pakistan. These offices work under their
respective zonal offices.
FACTORIES
Nestl has two factories in Pakistan for the production of Juices items.
One in Sheikhupura near Lahore.
LOCATION OF FACTORIES
Now we give some information about the companys factories of the company.
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Technology
They used Tetra Recart restorable carton in juice packing. The easy-open carton was
more convenient and positioned the tetra packing juices as a premium product.
High tech fat juices, France. Technology used to increase flavor and decrease the
fat in juices.
Plant capacity About 75000 kg per day fruit juice concentrate of orange and
passion fruit.
Plant equipment- Infeed fruit conveyor, fruit washer, fruit mill, screw pre heater,
hydraulic press, press filter, aerator, tubular/ plate sterilized/ pasteurizer, jacketed
storage tank and filling machine.
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PEST Analysis
Labor Laws
Labor is being privileged here having all the laws. Nestle company also follow these
law like government announce minimum salaries of a employ Rs 7000.
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Attitudes towards foreign companies
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.
Political instability
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 juices have not much affect this condition but
in future it may be face some difficulty for operating.
Economic forces
Inflation Rate:
Now in Pakistan inflation rate is almost 22.3% so if increase in inflation rate then
increase in prices of Nestle JUICES but if in Pakistan economy.
Social factor
Health consciousness
Today people are more health conscious so Nestle juices by identifying this need of
the people they are also producing health conscious juices with more vitamins.
Demographic trend
In Pakistan the population growth rate is 1.828% in 2008 and total population is
167,762,040 (July 2008 est)
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Age structure
0-14 years: 40% (male 33,293,428; female 31,434,314)
15-64 years: 56.9% (male 48,214,298; female 46,062,933)
65 years and over 4.1% (male 3,256,065; female 3,542,522)
Key Indicators
Environmental concerns:
About the environmental concerns of Nestle juices is good health.
Work life quality:
Quality of work life is very safer & environment friendly
Lifestyle changes:
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.
Technological forces
New Products
Nestle juices 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 juices are diversifying according to changing
demand of customers and trends.
Product innovation
Product innovation is becoming more necessary for the organization because of
globalization people are becoming aware about the changes being taken place around
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them so in order tactical the situation nestle juices is focusing on product innovation
by introducing new flavor of juices with the passage of time NESTLE JUICES use
new tetra packing like easy open cork of pack.
Market analysis
Currently in Pakistan, there are 24 fruit juice/pulp processing units and a number of
small units in the informal sector are working. The present installed capacity is
estimated around 400,000 metric tons per annum with a demand for juices growing
at a combined annual growth rate of 27%. The fruit juice industry reported sales of
9.526 billion Rupees in year 2011
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250
200
150 East
Column 2
100 Column 3
50
0
2001 2002 2003 2004 2005 2006 2007 2008
The outlook for the canned food industry - which can exploit rising demand
for convenience and consumer fears over food origin and hygiene - and the
soft drinks and beverages industry - which can capitalize on the asp rational
demands of Pakistan's young population - have both been moderately
accelerated. Forecast canned food sales growth to 2012 now stands at 46.7%,
while soft drinks sales growth to 2012 is forecast to stand at 36.4%. Both
have contributed to a per capita food consumption growth forecast
amendment to 15.4%. It is also expected that the average consumption of the
single person will be 85.5 hundred litters per years in 2012.
2500,000 liters juices approx drink by Pakistani people in a month. And per
day there is 83330 liters approx juices drink by people.
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The market share of the nestle juices is 60%. Which mean 1500,000 litters
in a month and 50,000 litters in a day.
Nestle is name of pure life so quality is their guarantee. So if they lose their
quality then they lose their sale because these dont operate on the given
image. And increase in rates of raw materials also influence the level of
demand because due to increase in cost the sale price also increase and due to
price war in a market of Pakistan demand level is effected. Or increase in tax
there will be increased cost price which also effect in decreased in demand.
Increase in inflation rate in Pakistan then this also effect in decrease in
demand level.
The nestle juices are at growing stage of product life cycle.
Competitors analysis
Competitor analysis in marketing and strategically management is an assessment of
the strengths and weaknesses of current and potential competitors. This analysis
provides both an offensive and defensive strategic context through which to identify
opportunities and threats. Competitor profiling coalesces all of the relevant sources
of competitor analysis into one framework in the support of efficient and effective
strategy formulation, implementation, monitoring and adjustment
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In order to evaluate the competitive position we have to take a look on the
competitors of Nestle juices in JUICE CATEGORY.
Competitors in market
Shezan
Haleeb
Country
Shezan is the main competitor of Nestle juices nestle juices compete their
customer on quality basis because In Pakistan their in no big name in pure fruit
juices. nestle provide their customer pure fruit juices.
Shezan
Short introduction of Shezan
The Shezan International Limited was incorporated on May 30, 1964 as a Private
Limited Company. Shezan International Limited was conceived as a joint venture by
the Shahnawaz Group, Pakistan and Alliance Industrial Development Corporation,
U.S.A. in 1964. Shezan is the largest food processing unit having developed and
installed the capacity to meet the country's local as well as export needs. In 1971,
Shahnawaz group purchased all the shares of Alliance Industrial Development
Corporation with the permission of the Government of Pakistan. In 1980-81 a
separate unit was installed in Karachi which now caters for Karachi, Sind and export
demand. A bottle filling plant was set in 1983 in Lahore, Punjab. An independent
Tetra Brik plant was commissioned in 1987.In the year 1990 it was decided to install
a juice factory at the Hattar in North West Frontier Province of Pakistan. Shezan
International's Head Office Located in Lahore, Pakistan. In Canada, Target Foods, is
the authorized distributor for all Shezan Products. They carry all the export quility
Juices, James, Pickles, Chutneys, Sauces, Syrups and Squashes.
The products of the Company include tetra pack juice, mango juice, pickles,
custards, vegetables, jellies and jams. The Company distributes the products under
the Shezan brand name.
Strong local name in the juice and drinks range
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Launched Shezan Orange
Launched Twist (nectars) 2003
Aggressive marketing campaign print, electronic
Shezan All Pure 2004
No trial generation activities
No consumer reward/loyalty CPs
Available packaging options
Shezan All Pure 1 Ltr
Nectars
Twist
Shezan nectars 1 Ltr
Weakness
1. Less product awareness in customer mind.
2. Rising manufacture cost
3. Inadequate human resource
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Opportunities
1. Shezan juices have great perception value in minds of customers while as Pakistan
organization.
2. Increase juices market very fast.
3. The concentric diversification in different juices products.
4. Backward integration can use in juice products of Company.
5. Decreasing economy condition.
Threats
1. There is strong competition in juices market.
2. Different strategies adopted by competitors Nestle in juices products
3. New product advancement by different competitors.
4. Increase inflation rate (23.3% 2008)
5. Rising labors coast.
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 can not compromise on quality.
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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.
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.
9. HR department
Nestle company has a strong HR department.
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Weaknesses
1. Storage ability
Nestle juices not store able for long time.
Opportunities
5. Global hub
28 Nestle
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6. Market growth
Juices market expands very fast .A new research proves that in future (2012) every
person use 85.5 liters juices per years.
Threats
1. Government Regulation
They face problem if government employ taxes on them which force them to raise
the price of their product.
2. Increase in competition
3. Entry barrier
There are no many entry barriers so a large numbers of local juices enter in juices
market
4. Labor coast
Increase labor cost
5. Inflation rate
Increase inflation rate very fast .In 2008 expected inflation rate 23.3%.
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Threat of new entry:
The threat of new entrance means when any other company that is not operate in that
product category but operate in the other product market or the company that start it
new venture see a opportunity in this field like juices and they decided to enter in
this market. So the current company that is operating in the market has a great threat
for the new entrance. New entry can raise the threat of competition. In juices market
there is great threat of new entry. Because in last few years many new juices enter in
market. There is no major barrier for local juices to enter in market. So many local
juices enter in market like FRAZ, COUNTRY. There is some barrier for stop the
new entrance
Economies of Scale
Product Differentiation
Capital Requirements
Switching Costs
Access to Distribution Channels
Cost Disadvantages Independent of Scale
Government Policy
If all these things present in the market then no company want to enter in that market
because they know there is no any opportunity for it.
The company needs raw material, labors, component and other supplies. These
requirement leads to buyers-suppliers relationships between industry and the
suppliers. Suppliers, if powerful can exert an influence on the producing industry,
such as selling raw materials at high price to capture some of the industry profits.
Suppliers have great bargaining power if the company can not produces its raw
materials or other ingredients. Suppliers have weak bargaining powers, if in the
market many suppliers and demand of raw material is low.
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Buyer Power
Bargaining power of customer is one of the important forces in the porter five forces.
In the field of juices customer has a low bargaining power because they purchase a
single unit and have not in that situation that they can negotiate with seller on price
matter. But the bargaining power of those buyers whose buy in bulk have great and
they want to set the price on their concern.
Here you ask yourself how easy it is for buyers to drive prices down. Again, this is
driven by the number of buyers, the importance of each individual buyer to your
business, the cost to them of switching from your products and services to those of
someone else, and so on. If you deal with few, powerful buyers, they are often able
to dictate terms to you.
Threats of substitutes
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market position and seeking bigger sales. In the market rival create a great threat.
Many companies introduce juices in market and increase threat. Many local
company enter in market, there is also great threat for establish company. Nestle
juices also face lot of competitor rivalry. Some carbonated company introduces
juices in market, it also create threat for nestle juices. The main competitors of
Nestle juices in the market Shezan, Haleeb.
Sometimes if there is group of same age people like young generation friends group
then any of one or more then two person can insist to drink juices.
Distributors and retailers role in buying process
Product after passing through Distributors and Retailers reach to the final customers.
So they play very imported role in buying process because distributors are those
persons who first buy the juice in complete packing then sell to the retailers so
distributors start their purchasing after deciding the profit margins rate and area to
distribute the juices. Similarly retailers after buying juices from distributors they sell
33 Nestle
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to final customer after analyzing the brand loyalty and after the judgment of the
packing and attractive offer for the retailers of any promotion scheme for the retailers
and profit margins.
Source Asim Bakers
Al Meraje Bakers
China Bakers
Factors stimuli to purchase.
There are the following factors that insist the person to buy the juices. These are
Thirst
Taste & Flavor
Fit for body
Most persons drink the juices due to taste and different fruity flavors. Some people
like co2 water but some people like without co2 juices. So many people like to drink
soft juices like nestle fruit juices due to natural taste and flavor
Similarly now a days people are more health conscious so due to fruity mixture they
desired to full fill their esteem needs and so they drink that juices.
Evaluate the alternative product
Customer evaluates the product by considering the brand company and their
ingredients and packing. They also check the taste, flavor and quality. If the flavor
and ingredients are satisfied for the customer and better then the competitor then
customer can insist itself to buy that juice, otherwise customer may can choose the
competitors juices.
Who take final decision
Usually family main members take the final decision to purchase juices. But a single
person also can take that decision according to his or her desire.
They also implement the purchase transaction. In a family if the main family
member implement the purchase transaction and whole family drinks the juices.
Juices are disposable means after drinks mostly packing of the juices are disposed.
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Marketing Segmentation
We are going to segment juice market on the basis of need. There are following need
which we came to know that people like to drink during the following stages:
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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
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.
Point of parity
Different flavor
Tetra packing
Point of difference
Enhanced nutrition
This is the point of differentiate that nestle always provide good and pure juices
which is fit for human body
Brand element
Name
Nestle juices is the brand name.
Slogan & logo
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Slogan is the short phrase that communicates descriptive or persuasive information
about the brand. 100% pure is the slogan of Nestle juices. The slogan shows that
nestle pure juices have good quality and taste. Nestle juices slogan wants to create
image of pure juice with good taste and quality in the mind of customer. Logo of
Nestle juices in word marks with text it own name Nestle.
Product strategy
core benefit
Core benefit means the services and benefits the customer is really buying.
Our customer fulfills its need of thrust and refreshment by buying our nestle juice.
Basic product
Its mean what specifically the actual product is.
Our actual product is juice
Excepted product
A set of attributes and conditions buyers normally expect when they purchase this
product.
Normally customers want to drink a juice with greater taste and flavor so nestle
provide great and pure juices.
Augmented product
A product that include features that go beyond consumer expectations and
differentiate the product from competitors.
Our juice taste and flavor is according to the customer expectations because we
provide 100% pure juice. We have no compromise with quality. We try to provide
maximum 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
All possible augmentation and transformations the product or offering might undergo
in the future.
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In future we will introduce new pulp juices in the market nearer future. We will
launch special juices for sports men and professional working people.
OF FACILITY
PRODUCT
Communication Strategy
Nestle company use different sources to communicate their target marketing. nestle
company use those sources on that the more customer attract like TV,
NEWSPAPERS, BILLBORD and when they lunch any secame in juices they use
pamphlets to aware their customer. 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 produce awareness in our customer about new products and also produce
awareness to new customer about nestle juices. 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
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Nestle 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
also keep in mind that their competitors use what channel and what time they give
adds. Nestle management also keep in mind what type of customer they attract and
what time they sit before TV. nestle juices different time on different channel to keep
in mind the target customer TV watching time.nestle juices give ads on PTV
home,GEO,ARY an PTV news.
News papers
Nestle company advetise their juices through news papers.large numbers of custmers
have reading habits of news papers, so nestle use the media of news papers to attract
their customer. nestle management also keep in mind that their competitors use what
type of news paper and what time they give their ads.so after all these analysis nestle
select DAWN and NAWAE-WAQT.nestle give their ads on both news paper at the
time of Sunday.
Billboard
Nestle juices attract their customer through billboard. Nestle company select the
main city in country and those places where large numbers of customer easily attract.
Nestle has a polices to use 500sqr fts in each region
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Marketing budget
TV budget
nestle juices give their ads on tv when the juices season on pack. Nestl give its
juices ads on different tv channel 24days in different timing. total cost on this
advertisement 9413424(rs)
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Billboard budget
Nestle has a polices that they cover each region with 500 sqr fts.in small city the use
less billboards. the coast of billboard in different cities has different. there are three
rate 40000,70000,and 125000(Rs).total coast on billboards 2560000(Rs)
Distribution Strategy
Nestle Company establishes the distribution channels in each famous city of Pakistan
like Islamabad, Karachi, Lahore, Gujranwala, Faisalabad etc.
They also acquired the suitable distributors in each city. They hire maximum two or
three distributors in a city due to prevent from their own competition.
The provide the margin to the retailers is equal to the interest of band like 7% to 8%.
They also pay to use the shelf to store the nestle juices to the retailer for sale to the
final consumers.
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Manufacture
Where houses
Distributor
Whole seller
Retailer
Customer
Nestle juices uses different channel to distribute their product. First of all the
finishing goods stored in the ware houses and the next step products sending you the
distributor and distributor distribute throw different channel to whole seller to realtor
and the end to purchasing customer. Nestle distribute their product regularly to
distributions because their customers satisfy nestle services. Nestle company
distribution channel urban areas and rural areas, in rural areas the wholesaler
distributes the Nestle juices to the retailers store, and the rural areas the distributor
have a responsibilities to distributes the product to all the realtors stores. Nestle
company target market in Pakistan all the big and important cities
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juices
Price Strategy
Nestle juice are available six flavored and two size in the market. One is 200ml and
second is 1000ml. The packing of 200ml target of individual customer and 1000ml
packing target the whole family. 100% clear juices, the prices on the base of cost of
ingredients as well as other operational costs like processing, weighing packaging
and logistics.
Pricing objective
Quality leadership
Nestle juices is a main objective that its responsibility to provided best quality who
they promised to their customers and they fulfill their promised. In the recent
research nestle juices is market lender in the soft drink market.
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juices
Price Structure
(Consumer price)
200ml 20 Rs.
1000 ml 130 Rs.
(Mango and orange mix flavored)
1000ml 145 Rs.
(Pineapple and red grapes)
As they are market followers, they respond to the price strategy of market leader
(Nestle) in following manner:
Hold current
price;
Has competitor continue to monitor
Cut prices competitors price.
Yes
Yes
Raise perceived
Can/should effective No quality
Action be taken?
Improve quality
And increase price
Launch low-price
Fighting brand
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juices
Price Demand curve
Demand have a impact on a company objectives because price are inversely to
demeaned, if price is high so demand is low of the product . Nestle company always
aware of the price sensitivity of the customer so it known about purchasing power of
the customer. Nestle juices demand curve is elastic because lower price and higher
quality produces high revenue.
Elastic demand
Inelastic demand
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juices
Estimating cost
Final price
Nestle set the final pricing related to their market competitors so nestle
price do not have impact on the company policy, and other marketing
activities.
46 Nestle
juices
Sale forecast
There is 1500,000 litters nestle juices being sold in a month in Pakistan. 30% of 1500,000
litters is being sold in Karachi and 20% of 1500000 is being sold in Lahore, 10% in
Faisalabad, and 5% in Gujranwala and 7% also in Islamabad.
Karachi
Lahore
Faisalabad
Islamabad
Gujranwala
Other
1,200,000,000
1,000,000,000
800,000,000 Nestle
600,000,000
400,000,000
200,000,000
0
2003 2004 2005 2006 2007 2008
47 Nestle
juices
48 Nestle
juices