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Business plan for nestle fruit juices Term report of Entrepreneurship

Submitted to sir ather qadeer qurishi BBA 6E Group members Shah saad Maleeha mohiuddin Junaid fazil Shazia taj

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TABLE OF CONTENTS
1.Letter of transmittal 2. Executive summary 3. History and Introduction 4 4. Mission and vision 5. Market analysis 6. Competitor analysis 7. Swot analysis of nestle juice 8. Analysis of buying behavior 9. Marketing segmentation 10. Positioning 11. Product 12.placement 13. promotion 14. price 19 Sale forecast References pg 4

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LTE O ETR F T AS I T L R NM A T
Sir Ather Qadeer Qureishe Course Instructor, Entrepreneurship Bahria University, Stadium Road, Karachi. RESPECTED SIR, We are pleased to inform you that the final report you assigned for has been completed and is ready for your examination. This report as per your instruction has covered all the authentic areas of concern and contains all the relevant information. We would dearly like to thank you for the faith you showed in our capabilities and the encouragement you gave us when assigning us the report. YOURS SINCERELY, Shah Saad Junaid Fazil Maleeha Mohiuddin Shazia Taj

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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 are 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 companys history and introduction which included the year of formation and certain steps the resulted in the todays form of Nestle. We do experiment about SWOT analysis who its effect on our brand .so we described MARKET analysis or need for target market, Mission and Vision statement of the company, H.R structure of the company ,competitor analysis, analysis buyer behavior , hierarchy of organization goals and the next of nestle company ,so we explain Marketing plan (4Ps), 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 and Future Plans Of Company.

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Brief 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. 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. There are seven variant of nestle

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Our Vision Nestls global vision is to be the recognized leading Nutrition, Health and Wellness Company. Nestl Pakistan subscribes fully to this vision of being the number one Nutrition, Health, and Wellness Company in Pakistan. In particular, we envision to; Lead a dynamic, motivated and professional workforce proud of our heritage and positive about the future. Meet the nutrition needs of consumers of all ages from infancy to old age, from nutrition to pleasure, through an innovative portfolio of branded food and beverage products of the highest quality. Deliver shareholder value through profitable longterm growth, while continuing to play a significant and responsible role in the social, economic, and environmental sectors of Pakistan. Our Mission To positively enhance the quality of life of the people of Pakistan by all that we do through our people, our brands and products and our CSV activities. Our Ambition GOOD FOOD GOOD LIFE To be the leading Nutrition, Health and Wellness Company in Pakistan.

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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 year 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
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demand level. y The nestle juices are at growing stage of product life cycle.

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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 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 Malee Country Fraz 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.

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Human resource

In 2010, with continued focus from last year, Human Resources pursued its drive for strengthening a high performance culturewithin Nestl Pakistan. Initiatives taken were specific to enhancing performance,focusing on employees career development, recognition and instilling a culture aligned with our values. A new performance management system was introduced within the organization to encourage employees towards high performance and strengthened goal alignment. Additionally, our talent management process was further improved to promote A vision of increased transparency and people management process. Nestl Pakistan places a premium on developing and securing the next generation of leadership. To this end, a customized program called the Nestl Leadership Development Experience was designed with the premier business school of Pakistan i.e The Lahore University of Management Sciences (LUMS). Over 100 managers were exposed to this intervention, which prioritizes the process of self discovery and leadership. To strengthen our value-driven culture, we involved our top & middle management in an exercise to define the frame of our aspired working environment. This frame contains a set of behaviors and values that we seek to embed further in our culture to achieve our long term vision. Our historically successful management trainee program improved approach was appreciated and continued thisyear as well. The program is now a two year program aimed at developing our future leaders. Trainees are provided opportunities and projects throughout the value chain of the company. For leveraging technology to achieve service excellence, Human Resources procured a major achievement by launching the SAP module for payroll management and integrated end-to-end online recruitment system. The SAP payroll module has brought convenience and simplicity for users along with longterm expediency in adapting best practices for technology. Whilst, the new online recruitment tool will also accelerate the efforts of providing international accessibility to job vacancies and in ensuring the future talent pipeline for the company.

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The company continued to reward excellence through its official reward and recognition program called Maan Humaara Tum Se i.e You Make Us Proud. This gives a formal platform to recognize extraordinary efforts in innovation, simplification and going beyond the call of duty. We endeavor to strengthen the positive work environment where performance is truly appreciated. To facilitate employees with an even more positive working environment, a number of initiatives were taken at head office level. Among which included renovations of the head office, improved canteen facilities, increased capacity of the pick and drop facilities for the convenience of employees and formation of a help desk which facilitated employees in the practical management of their personal finances. To support our commitment towards people and adapting Corporate Business Principles in our transactions; successful negotiation meetings were achieved to further strengthen our industrial relations. For Human Resources the year 2010 was about taking steps towards the organizations top priority which is building a high performance culture while also developing its people and facilitating them with a more positive work environment.

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Swot analysis of nestle juices

Strengths
1. Company Image Nestle company has a great image in the mind of people. Nestle company has world wide reputation. 2. Quality Conscious Nestle produce a good quality products. It can not 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 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.
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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 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 Consumers in urban areas drink functional drinks on a regular basis as they increasingly adopt Western lifestyles, especially the younger generation which is hugely 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.

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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 use 85.5 liters juices per years. 7. limited options in real fruits juices Limited options in locally produced real fruit juices.

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 There is large competition in juices market 3. Entry barrier There are no many entry barriers so a large numbers of local juices enter in juices market

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4. Labor coast Increase 5. Inflation rate Increase inflation rate very fast .In 2011 expected inflation rate 13.3%.

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 provides them suitable taste and flavor. Nestle distributes that volume of juice for large family use which may be used in any events and occasions like use with breakfast and dinner etc or serving the guests etc.

Targeting
200ml For Travelling and occasional 1000ml For domestic use Nestle is first company who launch the these two packing in juices who provide the satisfaction more as compare to competitors but now competitors also move this segment and according to that we are going to launch segment of food energy drink. Identifying new segments In Pakistan our segmentation strategy are so strong and the result all the established areas have availability of our juices and our target goals achieve easily but according to the competitors are moving our segmentation we will launch new segment of food energy drink for the sportsmen and professional working people.
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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. Point of parity Different flavor Tetra packing Point of difference 100% pure juice Enhanced nutrition This is the point of differentiate that nestle always provide good and pure juices which is fit for human body 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.

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Marketing Plan (4ps)

1. Product
Name: Nestle juices is the brand name. Slogan & logo: 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. 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 energy drink for the sportsmen and professional working people.

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2.Promotion
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 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
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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 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)

3.Placement
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. 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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4.Pricing
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 100ml 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. Maximum profit margin Nestle juices is a big price objective that they provided high quality and positing and we taken premium price to our customer other than our competitors. Nestle juice contain maximum profit margin other than their competitors. 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. Long relationships with customer. Nestle juices provided superior value to their customer who they promised throwing advertising. So the customer are loyal the nestle brand.

Price Structure (Consumer price) 200ml 1000 ml

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25 Rs. 110 Rs.

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Sales forecast
There is about 150,000 liters of nestle juice is being sold in Pakistan. 30% of which is sold in Karachi 20% in Lahore 10% in Faisalabad 5% in Gujranwala and 7 in Islamabad and reaming in other small cities and villages.

References
As the data for Pakistan beverage market and especially the juice market is skater on the cyber space so here are some links from which data about the particular market obtained.

www.cia.gov www.nestle.com.pk www.finance.gov.pk www.nestle.com www.brandsynario.com

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