PRINCIPLES OF MARKETING

REPORT ON MARKET STREGITY OF

NESTLE NESVITA

SUBMITTED TO

SIR BILAL AMAN

7TH SEPTEMBER 2009

RESEARCH AND COMPILED BY

TAHIR ALTAF

ATUFA MERAJ

ZAEEM AHMED

SYED FAIZAN

NADEEM AHMED

TAUQEER ALI

PRODUCT NAME

HISTORY

Nestle Pakistan Limited is a Pakistan- based food and beverages company. The Company is engaged in manufacturing, processing and sale of food products.

Nestle has been serving Pakistani consumers since 1988, when their parent company, the Swiveled-based Nestle SA. First acquired a share in Milkpak Ltd. Nestle Pakistan Limited is registered on the Karachi and Lahore stock exchanges; for the past five years and has been declared one of the top 25 companies on the Karachi Stock Exchange by 2014. Nestle Pakistan aims to be a Rs. 100 billion company. Nestle s a human company and offers tremendous opportunities for career growth and learning at domestic and international levels. With over 8000 brands preferred for their good quality, taste and health benefits. Nestle is the number one food company in the world.

Nestle is leading the change in the food industry as it is also the leading food company in terms of having the largest set up of research and development in food science and nutrition. They are uniquely positioned to provide products that help consumers live a good life. Many Nestle brands have benefited from the active ingredients developed by Nestle research and with over 130 years of expertise, consumers know they are getting the best in quality when they choose a Nestle brand.

Happy and healthy consumers are at the heart of what they do. Their philosophy is summed up in the phrase "Good Food, Good Life: and they remain committed to help consumers choose better tasting and healthier products to help them enjoy happier, healthier lives.

ABOUT THE PRODUCT

In today’s world there are many diseases causing deadly ailments such as

heart failure and Sugar, the rate of the former is high and the reason is high

cholesterol as mentioned above. High cholesterol is due to the

consumption of high fat food items like oil, milk etc

To improve the quality of life one should avoid fat food items, considering

this view our FMCG companies started producing low fat food items. Nestle

is also doing the same in its dairy products they have introduced high

calcium low fat milk with their brand of Nesvita.

If you are set for an active and healthy lifestyle then you needs to get the

strength your bones need & the smartness you desire with NESTLÉ

NESVITA Milk as its high in Calcium and low in fat. With 50% more

Calcium than regular milk NESTLÉ NESVITA locks the Calcium in your

bones making them strong and healthy. This is because it contains CALCI-

LOCK, a special combination of Calcium, Vitamin D and other essential

vitamins and minerals.

TARGET MARKET

Nestlé’s Nesvita milk is for such a segment of the markets that are health

conscious and want to lead a healthy lifestyle; they have specially targeted

the women of today who is either a working woman or a married woman.

Nesvita believes that all the women folks should be strong as they have to

look after the elders of the family, and their offspring’s too. They are the

ones who need to consume this high calcium low fat milk the most, as the

disease of osteoporoses that speeds up the process of the natural loss of

calcium in the bones causing them to become weak and fragile, leading to

loss of height, curved spines, and bone fractures, especially in women.

Therefore to protect women from this disease consumption of Nestles

Nesvita is essential.

Demographic segmentation

Nestlé’s Nesvita is meant for all the users in higher upper or middle class

families being positioned as a brand for moderate income earners also.

Due to the income factor involved it can be said that Nestlé’s Nesvita milk

targets specially those women who are health conscious and concerned

about their weight and health, as they have to look after their children, their

elders and themselves.

Psychographic segmentation

On the basis of psychographics, factors such as personality traits, lifestyles

and values, the marketers at Nestlé’s Nesvita have segmented the market

more towards health conscious women. The ads for Nesvita show a

women who want to be successful, having high aims. Both the ads narrate

the same.

Once this segment of customers was identified for Nesvita the brand was

positioned in the minds of customers through various promotional

strategies. Following are the promotional strategies used by this brand to

maintain its name in the market in competition with other brands offering

High Calcium Low Fat milk.

Market position

Nestle Nesvita makes a distinct position in the mind of the consumer by

using a sentence like “Bones Strong Tou Mein Strong! “Means healthy

lifestyle is the main image that nestle creates in the mind of the customers.

Nesvita position as strength for the women its low fat and full of calcium

milk. It full fills the requirement of calcium in your body. So Nestle position

its brand Nesvita in market as healthier milk and special strength for

women and those people who are health conscious. If you are set for an

active and healthy lifestyle then you need to get the strength your bones

need & the smartness you desire with NESVITA Milk & Yogurt as it's high

in Calcium and low in fat.

With 50% more Calcium than regular milk & yogurt, NESVITA locks the

Calcium in your bones making them strong and healthy. This is because it

contains CALCI-LOCK, a special combination of Calcium, Vitamin D and

other essential vitamins and minerals.

PRODUCT

NAMENestle Nesvita

SLOGAN “Bone Strong Tou Mein Strong.”

Nestle is the world’s largest food company producing 10,000 food items

which have captured a large part of market share and is growing big time. Nestle has a unique name in production of milk due to presence of large no

of competitors the Nestle milk pack suffer from a decline how ever it was

the strategy to defeat the competitors so Nestle re launched its product in

market because it the requirement of the market and time to introduce a

new trend in market.

SIZES

1 Liter (Milk)200 ml (Milk)450 gm (yogurt)

INGREDIENTS

CALCIUM 27-30%PROTEN 15-18%POSPHORUS 31-34%VITAMIN A 6-9%ENERGY 160-169 K CAL

PROMOTION

Advertising

All advertisement used by Nestle Nesvita highlight that over the years, food

products have evolved from mere commodities to a statement of lifestyle,

as consumers get more health and quality conscious, consumer

empowerment surges. They say that if you are set for an active and healthy

lifestyles then you need to get the strength your bones need & the

smartness you desire with NESTLÉ NESVITA Milk as its high in Calcium

and low in fat.

Broadcast ads

Nestle Nesvita has captured the women of today both being working our

housewife’s, the need to have stronger bones and consume more calcium

more than anybody else. They believe that kids can bloom and bosom

more if their parents especially mothers are strong, their parenting will lead

these children to be smarter healthier kids. Two Tvc’s are used so far by

Nestle nesvita for the promotion of their brand.

In one of the TV Commercial a housewife is shown, she first locks up her

jewelry box which contains valuable jewels; she then locks the door for the

safety of the house.

In the end the husband asks her if they could now leave(ab chalein sab

lock hogaia) she then asks him that can I put the calci lock ? (calci Lock

laga Loon) and then she consumes a glass of nestle nesvita as her body is

more valuable then any jewel and for the safety of her health and to have a

fit body she needs to put up that Cacli lock.With 50% more Calcium than

regular milk NESTLÉ NESVITA locks the Calcium in your bones making

them strong and healthy. This is because it contains CALCI-LOCK, a

special combination of Calcium, Vitamin D and other essential vitamins and

minerals.

Print Ad’s

Following are the different print ads used by nestle Nesvita in different

news papers

All the ads emphasize that consumption of two glasses makes your bones

strong and healthier “2 glass rozana bones strong aur tawana”,

consumption of two glasses of milk will keep your bones strong and you

feel energetic. The lock encircling the bone is a cacli lock, calcium that

locks your bones strongly and prevents it from becoming fragile and weak.

This ad highlights the fact that every body has a right to feel fit and stylish

“style bina din guzara naii jataa” if once your body is fit your bones strong

you will automatically look like a stylish person. The figure of a girl and that

of the bone are shown similar and this style can only be adopted by you

through consumption of nestle Nesvita.Emphasis is given more on the

female body figure as their marketing campaign gives the message that the

working women of today has to be strong as she has to look after herself

and her family .

Sponsored T.V. Shows

Nestle Nesvita is sponsoring “ARY’s morning show”, there is a Nestle

Nesvita’s super fit segment where a female is teaching different exercises

and giving tips to become fit.This attracts that segment of people who

exercise at that time to consume Nesvita so as to become strong along

with fitness.

Pricing

In case of Nesvita, the prices are quoted on the base of cost of

Ingredients as well as other operational costs like processing, weighing

Packaging and logistics.

Psychological pricing

For Nesvita the psychological pricing is also used, i-e high

Prices are quoted, which reflect product positioning, as “high price for high

Quality”.

Price Structure:

(Consumer price)

20 ml Rs. 20 (Milk)

1000 ml Rs. 65 (Milk)

450gm Rs. 38 (Yogurt)

Placement

• This product is distributed through authorized distributors, who are

selected on a tough criteria, i-e qualification, previous experience of

the same field, distributor’s storage place which should be neat, clean

and up to the mark, his motor vehicle etc.

• Proper planning by following demand and supply rule carries out

distribution. Also the distribution strategy of the competitors is

considered.

• Inventory level of Milk in the godowns of the distributors is always

kept more than demand so as to fulfill the demand of potential

customers.

• Nesvita is distributed to all the “A” class superstores of high

traffic markets of posh areas. For example in case of Karachi the areas

of high availability are Makro, Mettro, and super stores and general store.