Documente Academic
Documente Profesional
Documente Cultură
12 Marketing segmentation 35
13 Positioning 36
14 Product strategy 37
15 Communication strategy 38
16 Budget 40
17 Distribution strategy 41
18 Price strategy 42
19 Sale forecast 47
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.
Nestle lassi is a traditional Pakistani beverage, a smoothie with 23 years of history. Its very
simple a blend of Pakistani-style yogurt and pure fruit. But made correctly, nestle lassi has
a wonderfully rich, genuine fruit flavor and a host of health benefits.
Probiotic literally means for life, and refers to the living, friendly bacteria found in
yogurts. There are plenty of bacteria that live inside you already and aid digestion and health.
But illness, poor diet, or even stress can have a negative effect on these bacteria. Probiotics
can step in, help restore a natural balance and get you back on your feet.
The secret is in how Pakistani-style yogurt is made using a unique combination of five active
cultures that grow slowly, at lower temperature. Unlike other yogurts to which probiotics are
added, Pakistani-style yogurt is made with probiotic cultures and contains a much higher
population of live and active cultures. Our lab tests indicate, that our Pakistani-style yogurt
has over a billion PER GRAM of L. Acidophilus, Bifidobacterium, Propionibacterium
Freudenreichii, and L.Casei.
Let's accept it "All Natural" doesn't mean much these days. All kind of stuff can qualify for
the "All Natural" tag. We, however, have a different philosophy. We only use what nature
makes. Period. So, only real fruit for flavoring. No "Natural Flavors." No concentrates. No
manufacturing shortcuts. Nothing but great taste. .
Our nestle lassi contains dairy, but dont worry even those with lactoce intolerance can enjoy
it too, without ill effects! In fact, cultured milk products like Nestle Nestle lassi, contain
active cultures that can actually take care of the lactose for you.
Each flavor of Nestle lassi contains a different amount of added sugar and calories. Most of
the sugar comes naturally from the cultured milk Dahi (yogurt) and fruit. We do use some
organic cane juice to sweeten but try to add as little as possible. Check Weve our Nutrition
Drops to help decide whats right for you.
Research Methodology:
Before introducing any product in the market the research is the most important instrument
which used by every organization. If companies do not care about the research and do not
collect the knowledge and trend of the market and then product will soon fade out and its all
investment has lost. If they conduct the research before introducing the product in the market
in this way they already know about the market trend and everything about the customer.
What the customers want and what we are introducing in the market. Is it fulfilling the
requirements of the customers? We answer this entire question when we conduct the research.
There is lot of methods which we use to know about the market.
Primary Data:
According to our research project we use questionnaire for the purpose of collecting data about
Pakistani market. In this way we get complete knowledge about our product. How much
peoples like this product and what is the usage ratio of this product in Pakistan. According to
this ratio we can develop the marketing plan easily for the Sakaka Al Jouf.
Primary Data will be consist of following:-
Survey
Questionnaire
Online Interview
Facebook
We conduct online survey for the purpose of collecting knowledge about Sakaka al jouf .
There are two fold purpose of this researching methodology, first purpose is in this way we
collect data, get knowledge about the Sakaka Al Jouf, know the trend of the market and
observe the behavior of the peoples and second purpose of this methodology was we introduce
our first product in the market thats why people do not know about the brand in this way we
do research on one hand and on the other side we also promote our brand and do marketing
also.
Secondary data:
In this report we also use secondary data because primary data may not easy to collect There
are lots of benefits of secondary data and some of them are here, it is the cheapest mode of
collecting data, lot of data available, immediately collection of data and authentic observation
of other researchers.
Target Audience:
Target audience means which sector, segment, and school of thought you target for your
product. It is not easy to allocate your product for specific audience but after that it is easy to
market your product to the interested persons. According to our Product, our target audience is
15 to 35 ages. Childs, young male and female customers were included in our target audience.
Saudi Arabia is the most warmed country in the world. There everyone is energetic. Child is
keen to drink Lassi because it is different in taste and on the other hand it also had an
attraction for the male and female young customers because they use it for many different
purposes. Means they use it for short enjoyment and many other purposes. It will be highly
suitable for the peoples of Saudi Arabia because there are lot of beverages in the market and
people preferred drinks & juices because it is cheap and no other expenses.
Sampling plan:
After deciding the research approach and research instrument, we focus on the sampling plan.
This calls for three decisions.
Sampling Unit:
Under this heading we discuss who is to be surveyed? Our target market is Sakaka Al jouf and
target audience is 15 to 35 ages. In this way when we introduce our product in the market we
do not focus on the whole market of Saudi Arabia we only serve the peoples of Sakaka Al jouf
because it is the most warmed city of Saudi Arabia and also dry city. We will survey some of
people from the whole population of the Sakaka Al Jouf some of them from children, school
boys and girls, jobholders.
Sample Size:
Large samples are more reliable then small sample thats why we arrange the large survey.
Now we research how many people should be surveyed? We took sample from every group of
age and know the trend of the customers and market with a credible planning procedure.
Sampling Procedure:
Now we discuss how should the respondents be chosen? We will take representative of the
target audience and then we decide to take the sample from those peoples. We will take some
people from 15 to 20 and some from 20 to 25 and some from 25 to 30 both female, in this way
we know the trend and behavior of the target market. Then we will develop the plan according
to the trend, behavior and demand of the target market.
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
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.
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.
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.
Fruit Juice - Production Process Flow
Production of fruit juices is a standardized process and initial preparatory processes for all fruits will be similar, as
will be the last stages of juice/pasteurization section and packaging, although differences in handling juice
composition arise in certain cases due to the nature of the fruit and percentage of vitamin involved. Basically,
preparation process of juices involves the following steps:-
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.
Fruit Juice Production Process
Fruits boiler where it is cooked and shifted to the plate heat exchanger. Then stored in the storage tank. Then
supplied to the mixing tank in the desired quantity while in mixing tanks; any additives to the are made at this stage
before it is pumped to syrup storage tanks. Blended juice is then pumped through pasteurizer; where it is heated to
90oC to inactivate enzymes and living organism. After pasteurization the juice passes through final filtration, before
loading it into a juice storage tank. Juice from the tank is ready for packaging
Packing and labeling then storage.
The juice will be then packed in the quantities demanded by the market. Consumer packs as like 200ml and 1000ml
tetra pack and then label the nestle juices. Product will be in cool dry store.
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.
Marketing and sale
Nestle company launch their sale promotion scheme after six months and their last sale promotion was .
This was for a retail shop who put the nestle juices billboard on their shop or sale reception table then they can win
attractive prizes. By this operation they can save all the advertisement expenses which they have to pay to the retailer
or owner of the shop.
Nestle company use advertisement channels when company have to launch new brand or improvement in previous
brand. So company prefer to use Jeo, ARY one world, PTV home, I vision and news papers. They contract with the
advertisement channels for 1 to 2 months and repeat 2 or 3 time in a day.
They hire suitable distributors in a country at agreed profit margins who bought juices in bulk form from the
distributive channels and then sell to the retailer who final sale to the end consumers.
Nestle company has efficient market management whos main objectives for marketing their product are
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.
FACTORIES
PEST Analysis
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 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.
Productivity improvement through automation
Automation dont matter a lot but to some extent it contribute towards productivity and improvement. Imported pulp
is filled in machines for processing after the final form of juice it is packed in 250 and 1 liter packing.
Total spending on R&D
Spending on R&D is long term investment for any organization. Nestle has R&D department and head of R&D
department is Mr Arshad Bhati. Nestle total spending on R&D 70 millions.
New communication technology
All the modern as well as traditional ways of communication are being adopted by Nestle juices including own
emails, letters, faxes and monthly visit in different offices of Nestle juices for better communication among supplier,
distributor and customers.
Nestle juices has also established own web site which can be visited any one for most recent news innovation and
activities being taken in the organization.
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 8.526 billion
Rupees in year 2008.
250
200
150 East
100
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.
The market of juices is growing because the consumption of juices increases every year and expected it increase
continually due people change the life style and more health conscious. They prefer juices on other soft drink.
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
SWOT Analysis Nestle Lassi
Strengths:
Strong Brand image
Quality Milk
Milkpak is known as the best UHT milk in Pakistan due to consistency in quality.
Focus on research and development
Weaknesses
Very low Marketing Campaigns
Opportunities
Milkpak brand may get entire or about entire market share by availing opportunities in Market that includes
Health Conscious people
Increased knowledge of health
Competitors are not having any Ad campaign right now
Threats
Competitors may get better time and space in different Media
There is no loyalty for as far as milk is considered.
Quality is not being satisfied and taste as well by new comers.
They can start their marketing Campaign and Milkpak may loose market share
Nestle is facing the problem that is regarding the quality of milk. It is being perceive that infant or child belonging to
poor family who use low quantity of milk then required in daily use are getting affected.
Price is also a factor. Milkpak comprises 50% of profit of firm. Thats why price compromise can not be done.
Firm is not advertising the milkpak on its official web site in first view although it is giving highest profit to firm.
High collection of milk is required along with the presence of competitors.
Credit system is not possible for firm as being given by local loose milk producer.
Nestle is operating in a number of dairy products and milk allocation is first settled for other brand and then for
milkpak
Porter five forces model
Michael Potter's five forces framework can be used to determine whether the industry is attractive enough to sustain a
small or medium size enterprise. The five forces of Entry, Rivalry, Substitutes, Buyers and Suppliers jointly
determine the intensity of competition and profit potential for a small and medium size firm in a given industry or
market sector. In analyzing each market force, the question is whether it is sufficiently strong to reduce or eliminate
industry profits. The focus at this stage is at the industry level because industry dynamics and profits of necessity
dictate profits of other firms that enter the industry. Also, in carrying out a five forces analysis we want to be able to
answer this question: If the competitive forces in the industry are strong, is there some strategy that firms might
employ to defend it, or influence the forces in their own favors?
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 compant 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.
Bargaining power of supplier
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.
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
Substitute products refer to products in other industries. To the economist, a threat of substitutes exists when a
product demand is affected by the price change of a substitute product. A products price elasticity is effected by
substitute product as more substitute become available, demand becomes more elastic since customer have more
alternative . A close substitute products constrains the ability of firms in an industry to raise prices. While the treat of
substitutes typically impact an industry through price competition. If substitution is easy and substitution is viable,
then this weakens your power. The substitute product has a strong affect if the following things are occurred
Sales of substitutes are growing rapidly
Producers of substitutes plan to add new capacity
Profits of producers of substitutes are up
In juices market nestle juices has great threat for substitute like Shezan, Haleeb etc.
Competitive Rivalry
The big factor determining the strength of rivalry is how actively and aggressively are rivals employing the various
weapons of competition in jockeying for a stronger 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.
Analyze buyer behavior
Initiate buying behavior
There are two stimuli that insist the consumer to purchase the product that is
1) Consumer internal stimuli
2) Consumer external stimuli
Customer external stimuli
There are following types of people group include in the internal stimuli
Family
Reference group
So children, Individual and member in a group are the person who may initiate the buying process. Usually young
generation and families initiate the buying process.
Customer internal stimuli
A person also insist itself to drink juices due to its internal desire to drink the juice. It is called internal stimuli
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 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.
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:
For Travelling and occasional
Usually People like to drink during travelling. Because they have to carry single or small packing and juices are the
best for that. Juice provide them suitable taste and flavour.
Mission Statement:
Heat is On the Way Drink a Lassi
Objective :
Provide the Fresh Lassi in different flavor all around the Pakistan.
What is Lassi
Pakistan is as diverse as its people. Among the drinks or beverages consumed in Pakistan, lassi, is quite popular. It is
a traditional Pakistani dairy beverage, originally from Punjab, made by blending yoghurt with water, salt, and spices
(depending on the type of lassi) until the drink becomes frothy. It is consumed by over one billion Asians throughout
the world. With its smooth, cool and refreshing taste, it is the perfect accompaniment to the hot and spicy flavours
that epitomise Pakistani cuisine. This traditional drink is economical and plentiful in Pakistan, where cows and
buffalo provide an overflow of dairy-based recipes. Traditional lassi is sometimes flavoured with ground roasted
cumin. In Punjab lassi sometimes uses a little milk and is topped with a thin layer of malai, clotted cream. Lassi is
enjoyed chilled as a hot-weather refreshment. With a little turmeric powder mixed in, it is also used as a folk remedy
for gastroenteritis.
History:
Lassi was once the preserve of India's Maharajas. It is mentioned in ancient Indian texts and was widely used in
Hindu rituals. In old times, people would have lassi because they wouldn't get hungry quickly afterward; and they
could wait until lunch to eat again. Tart and refreshing, lassi serves to cleanse the palate alongside spicier foods. It
aids digestion and is a healthy addition to any balanced diet. Lassi is 100 per cent natural and is free from artificial
colourings, preservatives and flavourings. Besides offering health benefits, lassi is also indulgent and can be enjoyed
with or between meals.
Variations:
There are many types of lassi that are now available. Sweet lassi is a more recent invention, and has become
immensely popular. Rose water is a common ingredient for sweet lassi and adds a sweet, perfumed aroma. Sweet
lassi can be flavoured with any fruit of choice like mango, pineapple, banana, lychee, strawberry, etc.
The traditional lassi is a salty yoghurt drink which has a thicker consistency as compared to buttermilk. It can be
savoured with various spices and ingredients, but it almost always includes ground cumin powder.
Salty lassi is not only extremely easy and quick to make but also very refreshing and cooling to beat the heat of
summer.
Precipices of Lassi
Salty Lassi:
Ingredients
3 cups plain yoghurt
1 cup cold water
1 fresh green chilli, seeded and very finely chopped
tsp ground cumin seeds
Salt and pepper to taste
Fresh cilantro (coriander) or mint leaves to decorate
Crushed ice to serve
Method
Pour the yoghurt and water into a blender and blend for one minute. Add in chilli, cumin, salt and pepper and blend
together. Serve over crushed ice.
Garnish with a sprinkle of cumin powder and finely chopped coriander or mint.
Plain Sweet Lassi:
Ingredients
1 green cardamom pod
100 ml natural unsweetened yoghurt
1 tsp caster sugar
1 tsp rose water
200 ml cold water
4 mint leaves
Method
Use the back of a spoon to gently crush a green cardamom pod, until it splits. Remove the seeds with your fingers,
and put the seeds into a mixing bowl or jug, along with the yoghurt, sugar, rose water and water. Use a blender to
blend the mixture into a smooth paste. Pour into glasses. Garnish with a sprig of mint.
Pricing Strategy:
Type Price