INSTITUTE OF MANAGEMENT SCIENCES
BAHAUDDIN ZAKARIYA UNIVERSITY (PAKISTAN)
INTERNATIONAL MARKETING
TERM REPORT (2021)
ANNUAL TERM REPORT
COURSE WORK: INTERNATIONAL MARKETING
May 30, 2021
Syed Ali Raza| BE-17-13
Aeman Sohail | BE-17-44
Muhammad Usama | BE-17-61
Haseeb Ur Rehman | BE-17-62
INSTITUTE OF MANAGEMENT SCIENCES
BAHAUDDIN ZAKARIYA UNIVERSITY (PAKISTAN)
INTERNATIONAL MARKETING
TERM REPORT (2021)
NESTLE PRODUCT MARKETING IN FOREIGN MARKET (PAKISTAN)
INTRODUCTION
Nestlé S.A. is a Swiss multinational food and drink processing conglomerate corporation
headquartered in Vevey, Vaud, Switzerland. It is the largest food company in the world, measured
by revenue and other metrics, since 2014.
Our history begins in 1866, with the foundation of the Anglo-Swiss Condensed Milk Company.
Henri Nestlé develops a breakthrough infant food in 1867, and in 1905 the company he founded
merges with Anglo-Swiss, to form what is now known as the Nestlé Group. During this period
cities grow and railways and steamships bring down commodity costs, spurring international
trade in consumer goods. Nestlé was formed in 1905 by the merger of the Anglo-Swiss Milk
Company, established in 1866 by brothers George and Charles Page, and Farine Lactée Henri
Nestlé, founded in 1867 by Henri Nestlé.[14] The company grew significantly during the First
World War and again following the Second World War, expanding its offerings beyond its
early condensed milk and infant formula products.
Nestlé's products include baby food, medical food, bottled water, breakfast cereals, coffee and
tea, confectionery, dairy products, ice cream, frozen food, pet foods, and snacks.
HISTORY
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1900 operating factories in the united states, Germany, Britain & Spain. 1905
merger with Anglo Swiss condensed milk company. 1920’s saw nestles first
expansion with chocolate.
INSTITUTE OF MANAGEMENT SCIENCES
BAHAUDDIN ZAKARIYA UNIVERSITY (PAKISTAN)
INTERNATIONAL MARKETING
TERM REPORT (2021)
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Since 1996 there have been acquisitions including: San Pellegrino 1997, Spiller’s
pet food 1998, Ralston Purina 2002, Jenny Craig and uncle toby’s 2006, and
Novartis medical nutrition 2007.
LOGO meaning: The Nestlé logo was launched by Henri Nestlé in 1868 on the basis
of the meaning of his name in German, i.e., little nest, and of his family emblem.
NESTLE PAKISTAN
Nestlé Pakistan is a Pakistani food company which is a subsidiary of Swiss multinational company
Nestlé. It is active in dairy, confectionery, coffee, beverages, infant nutrition and bottled drinking
water areas. It is based in Lahore, Pakistan. The company was founded in 1988 by Nestlé in a joint
venture with Milk Pak. Then in 1992, Nestlé acquired Milk Pak brand from its former
owner Packages Limited.
Nestle Pakistan Products include:
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Milk, milk-based products and cereals
Beverages, juices and bottled drinking water
Baby food, coffee and confectionary
WHY NESTLE PAKISTAN?
Nestlé Pakistan is proud of its commitment to excellence in product safety and quality and to
providing value and aims to be the leading Nutrition, Health and Wellness Company.
Nestlé in Pakistan is operating since 1988 under a joint venture with Milk Pak ltd and took over
management in 1992. We choose Nestle due to its harmonistic cultural environment.
Nestle's culture is generally a very healthy one. The work environment is pleasant, supportive,
and collaborative. Nestle seems to do a good job of consistently hiring good people; they are
honest, nice people- solid citizens. We believe in the power of food to enhance lives. Good food
nourishes and delights the senses. It helps children grow healthy, pets thrive, parents age
gracefully and everyone live life to the fullest.
At Nestlé Pakistan, the global ideology of Nutrition, Health and Wellness is inspired by the
scientific breakthrough of our founder, Henri Nestlé and ever since it runs in our DNA ever since.
Guided by our values and with nutrition at our core, we enhance quality of life and contribute to
a healthier future. We are the leading Food & Beverages Company in Pakistan, reaching out to
the remotest areas, offering products and services for all stages of life, every moment of the day.
INSTITUTE OF MANAGEMENT SCIENCES
BAHAUDDIN ZAKARIYA UNIVERSITY (PAKISTAN)
INTERNATIONAL MARKETING
TERM REPORT (2021)
Nutrition support program by Nestle Pakistan
Under the Nutrition Support Program, Nestlé Pakistan regularly provides milk to approximately
20,000 children and underprivileged people who suffer from key micronutrient deficiencies in
urban, semi-urban and rural areas. The initiative is geared to support school going children whose
parents are unable to provide them with a serving of milk to fulfill their nutritional needs. These
schools are selected after giving due consideration of the profile to ensure that the benefits of
this program reach those who need it most, the outreach capacity of the company and availability
of resources. The program also supports organizations working with destitute women as well as
social welfare organizations for sports, culture and differently abled children.
NESTLE Juices
Nestle Juices is Pakistan’s 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. Nestle Fruita Vitals is a range of
premium juices and nectars from nestle. Nestle Fruita Vitals has always been committed to the
health and wellbeing of the consumers. Nestle Fruita Vitals is currently the market leader of the
juices and nectar category in Pakistan. Nestle Juices have evolved over the period of time,
starting from just a couple of flavours to now being available in a wide array of natural fruit
flavours. Nestle Fruita Vitals is the finest selection of fruit juices from the house of Nestlé. NESTLÉ
FRUITA VITALS is a brand that inspires the world to be more positive and encourages people to
celebrate the positivity around them. NESTLÉ Fruita Vitals Premium and Super Premium range is
currently available in Chaunsa, Red Grape, Apple, Kinnow, Pineapple, Guava, Peach and Red Anar
that offers the perfect blend of super fruit. NESTLÉ Fruita Vitals also launched its three new
flavours - Mint Margarita, Pina Colada and Royal Mangoes. Nestlé’s strategy for Nestlé Fruita
Vitals has been fair, simple and fruitful – Pure fruit, pure energy and pure juice.
Nestle Entrance in Pakistan
Nestle started its operation in Pakistan back in 1988, by acquiring diary company MILKPAK Ltd.
Butter, Cream, Desi-Ghee, under brands name Milk Pak.
Juice drink under brand name FROST.
• 1990 it starts producing NIDO, EVERYDAY, CRELAC.
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1991 Lactogenic 1 & 2.
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1994 Milo and Nescafe 3 in 1.
INSTITUTE OF MANAGEMENT SCIENCES
BAHAUDDIN ZAKARIYA UNIVERSITY (PAKISTAN)
INTERNATIONAL MARKETING
TERM REPORT (2021)
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1998 Sweet street’s (POLO).
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1999 Fruit Drops, NESTLE PURE LIFE.
NESTLE FRUITA VITAL BRANCHES IN PAKISTAN
Nestle in Pakistan has its branches following major cities.
• Lahore
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Islamabad
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Faisalabad
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Sheikhupura (Factory)
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Karachi
COMPANY STRUCTURE
Nestle Head Office in Pakistan is in Lahore, it also has registration in Lahore.
Nestle has divided the whole Pakistan in three Zones
• Northern Zone
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Central Zone
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Southern Zone
Nestle has 8 regional offices in all over Pakistan, these offices work under their respective zonal
offices.
FACTORIES in Pakistan
Nestle has two factories in Pakistan for the product of Juice items
• One near Sheikhupura, near Lahore (29 kilometers on Lahore Sheikhupura)
• Second in Kabir Wala, Multan (Khanewal Road District Kabir Wala)
Products
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Milk, Dairy and Chilled Dairy:
Nido
Neslace
Everyday
Yogurt
Fruit Yogurt
Raita
INSTITUTE OF MANAGEMENT SCIENCES
BAHAUDDIN ZAKARIYA UNIVERSITY (PAKISTAN)
INTERNATIONAL MARKETING
TERM REPORT (2021)
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Milk Pak Cream
Milk Pak Desi Ghee
Nestle Beverages
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Bottle Water
Nestle pure life
Nestle Juice
Fruita vital Guava Chonsa (mango) Mango-orange Mango Red Grape Pineapple
Baby Food
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Cerelac
Prepared Meal
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Maggie 2-Minutes Noodles
Break Fast Cereals
Nestle Cornflakes
Nestle Cococrunch
Nestle Honey Stars2
Chocolates & Confectionary
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Nestle KitKat and KitKat Chunky.
CONSUMER MARKET FOR NESTLE JUICES
Segmentation
A market segment consists of a group of customers who share a similar set of needs and wants.
Segmentation is made on the basis of the following
Demographic Segmentation
Fruita Vitals has different demographic areas to segment their market. Like – age and income.
Age: Fruita Vitals target ages from all groups of people, like children, teenagers, young people,
middle age group, and the older people; as everyone likes pure and good quality juice.
Income: There are a lot of income groups in the market. Fruita Vitals targets mostly the upper
class, upper middle class and middle-class people (SEC-A, B, C). As it is a premium juice its price
are relatively higher than other juices being offered in the market. It targets school, university
going students to working professionals. It is preferred by a variety of customers.
INSTITUTE OF MANAGEMENT SCIENCES
BAHAUDDIN ZAKARIYA UNIVERSITY (PAKISTAN)
INTERNATIONAL MARKETING
TERM REPORT (2021)
Psychographic Segmentation
Fruita Vitals contains less than 100 calories per serving making it a calorie smart juice. It targets
the calorie conscious people who focus on a healthy life style. To make people aware that Fruita
Vitals is not only for professionals and executive people, it carried out an advertisement in which
they showed university students enjoying the calorie smart juice, changing its brand image from
executive class to fun and enthusiastic. It is a very good source of vitamin C with no sugar added
in its Orange juice. It fulfils its 3S promise i.e., SMART, SAFE AND SUPERB.
Geographical Segmentation
Making it a premium quality juice it’s available in all the metropolitan cities of Pakistan i.e.,
Karachi, Lahore, Islamabad, Rawalpindi, Gujranwala, Multan, Faisalabad, Sialkot, Hyderabad,
Peshawar.
Behavioral Segmentation
Fruita Vitals segments the buyers into groups on the basis of their knowledge, attitude, usage
pattern, or response to a product. There are 3 kinds of users of Fruita vitals which are New Users,
Potential Users and the Regular Users. Nestle welcomes all three kinds of users. Due to the
existence of Potential and Regular Users Fruita Vitals is bringing out new flavors to its product
range.
Fruita Vitals carried out an occasional promotion on” Pakistan Resolution Day” in hyper star by
selling 1000 ML Fruita Vital (made in Pakistan) at less price.
Segmentation on the basis of Benefits and Needs
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For Travelling and Occasional Fruita Vitals has introduced their 200 ML pack for
convenience during travelling or occasions mostly for those people who are busy with
their working schedules because they have to carry single or small packing and juices are
the best for that.
For Domestic Use 1000ML pack for parties or family gatherings.
INSTITUTE OF MANAGEMENT SCIENCES
BAHAUDDIN ZAKARIYA UNIVERSITY (PAKISTAN)
INTERNATIONAL MARKETING
TERM REPORT (2021)
Targeting
Target market consists of a set of buyers who share common needs or characteristics that the
company decides to serve. A target market is a group of customers that the business has chosen
to point its marketing efforts.
The three most common target marketing strategies are differentiated, undifferentiated and
concentrated.
Nestle use differentiated marketing strategy for Fruita Vitals. A differentiated marketing strategy
targets different market segments with specific marketing mixes designed specially to meet those
segments' needs. Each mix includes a Product, Price, Placement and Promotional program
customized specifically for a particular segment.
Positioning
Nestle has created a certain image in consumers mind about their product. It can be expected
that Fruita Vitals being a product of Nestle will also be able to create a good image in
consumers mind. It has certain quality that ensures consumers belief to prefer this product
more than the competitors.
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Healthy and Nutritional
High quality product
Reliable and safe
Competitor Analysis
Fruita Vitals has 40% of maket shares. Direct Competitor of Nestle Fruita Vitals are
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Olfrute by Olpers
Shezan Beverages (All Pure, fruit drink, Twist)
Slice juice under umbrella of PepsiCo
Fresher by Al-Hilal Industries
Tropico and Just Fruit by Haleeb Foods
10%market shares
20% market shares
10% market shares
10% market shares
10% market shares
Indirect Competitor of Nestle Fruita Vitals are
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Coca Cola,Fanta,Sprite by Coca Cola Company
Pepsi Cola,Mountain Dew,7up,Mirinda by PepsiCo
INSTITUTE OF MANAGEMENT SCIENCES
BAHAUDDIN ZAKARIYA UNIVERSITY (PAKISTAN)
INTERNATIONAL MARKETING
TERM REPORT (2021)
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Energy Drinks (Red Bull,Monster)
Tea (Lipton, Tapal Danedar, Vital Tea, Supreme)
Coffee (Nescafe, Gloria Jeans and others)
PEST ANALYSIS
Political or Legal Forces
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Taxation Law
If government imposes heavy taxes on the industry, then it badly effects the industry
growth. The taxes impose is from government side and it varies from industry to industry.
Nestle Juices have no tax except sales tax.
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Environmental Protection Laws
They do concern for environment and contribute more and more for the betterment of
environment.
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Foreign Trade Regulations
Foreign trade regulation does not affect the overall policy and the working of the “Nestle
Fruita Vitals” because it operates nationally not internationally.
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Political Instability
The government stability also plays a great role for Nestle Fruita Vitals growth. 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.
Economic Forces
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Inflation Rate
Now in Pakistan inflation rate is almost 8.21% so if increase in inflation rate, then increase
in prices of Nestle Fruita Vitals juices.
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Economic Growth Rate
Economy growth rate is 5.8%(FY2018).
INSTITUTE OF MANAGEMENT SCIENCES
BAHAUDDIN ZAKARIYA UNIVERSITY (PAKISTAN)
INTERNATIONAL MARKETING
TERM REPORT (2021)
Social Factor
Nestle Fruita Vitals is looking at a sizeable population. Also, as Pakistan is a high context culture
(Lee's Global Reputation Management Blog) meaning that social events and familiarity and
intimacy among individuals is preferred. Nestle Fruita Vitals is such a product which is consumed
at such social events which foster closeness and celebration. Also, nestle in Pakistan is a big
corporate social responsibility player and many projects and programs by Nestle are targeting
social uplift in Pakistan.
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Health consciousness
Today people are more health conscious so Nestle Fruita Vitals Juices by identifying this
need of the people they are also producing health-conscious juices with more vitamins.
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Demographic Trend
In Pakistan the population growth rate is 2.63% in 2018-2019 and total population is
207,774,520. So, it affects the production of Fruita Vitals.
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Environmental Concerns
About the environmental concerns of Nestle Fruita Vitals Juices is good health.
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Life Style Changes
Nestle Fruita Vitals 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
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New Products
Nestle Fruita Vitals 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 Fruita Vitals Juices are diversifying according
to changing demand of customers and trends.
INSTITUTE OF MANAGEMENT SCIENCES
BAHAUDDIN ZAKARIYA UNIVERSITY (PAKISTAN)
INTERNATIONAL MARKETING
TERM REPORT (2021)
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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 Fruita Vitals is focusing on product innovation by
introducing new flavor of juices with the passage of time NESTLE FRUITA VITALS JUICES
use new tetra packing like easy open cork of pack.
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Productivity Improvement Through Automation
Automation don’t matter a lot but to some extent it contributes towards productivity and
improvement.
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New Communication Technology
All the modern as well as traditional ways of communication are being adopted by Nestle
Fruita Vitals including own emails, letters, faxes and monthly visit in different offices of
Nestle Fruita Vitals for better communication among supplier, distributor and customers.
SWOT Analysis of Nestle Juices
SRTENGTHS:
• Company images - Nestle company has a great image in the mind of people. Nestle
company has worldwide reputation.
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Quality conscious - Nestle produce a good quality product. It can’t compromise on
quality.
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Well-developed strategy - Nestle has recognizes there is a right time and place for their
product, therefore, their strategy makes room for adjustments.
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Market share - Nestle juices has a highest market share i.e 60% in juices market.
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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.
INSTITUTE OF MANAGEMENT SCIENCES
BAHAUDDIN ZAKARIYA UNIVERSITY (PAKISTAN)
INTERNATIONAL MARKETING
TERM REPORT (2021)
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Brand strength - In Pakistan nestle has some very strong brands like Nescafe and Nestle
Juice, Maggi Cerelac, nestle water and these brands are almost generic to their product
categories.
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Research and Development - Research and development department keeps nestle in
continuous knowledge about itself and competitors. It has a competitor advantage
because many local juices have no research and development department.
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Product innovation - The company have been continuously introducing new products
thus expending its product offerings.
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HR DEPARMENT - Nestle company has a strong HR department.
WEAKNESS:
• Storage ability - Nestle juice not store able for long time.
OPPORTUNITIES:
• Support foreign investors - Government support foreign investors to invest in Pakistan.
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Scientifically gas - This is great opportunities for nestle company. Because in coming
future nestle take the benefits of uses the scientifically gas.
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Changing social trend - Consumers in urban areas drink functional drinks on a regular
basis as they increasingly and adopt western life styles, especially the youngergeneration which is hugely influenced by the western media. Younger-consumers tend
to follow western eating and drinking habits. They were an increase demand for
functional drinks over the review period.
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Health conscious - Increasing health and hygiene awareness among Pakistanis has
greatly increase sales of fruit/vegetable. Both the government and the media have
started health awareness campaigns to make Pakistani’s reliance that consumption of
fruit/juice is has essential and eating food. Fruit/juices are doing very well in both Urban
and Rural areas.
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Global hub - Since manufacturing of some products is cheaper in Pakistan than in other
South East Asian countries.
INSTITUTE OF MANAGEMENT SCIENCES
BAHAUDDIN ZAKARIYA UNIVERSITY (PAKISTAN)
INTERNATIONAL MARKETING
TERM REPORT (2021)
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Market growth - Juice’s market expends very fast. A new research proves that in future
(2016) every person uses 85.5 litters juices per year.
Limited offers options in real fruits juices - Limited options in locally produced real fruit
juices.
THREATS:
• Government regulation - They face problem if government employ taxes on them which
force them to raise the price of their products.
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Increase in competition - There is large competition in juices market.
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Entry barrier - There are no many entry barriers so a large number of local juices inter in
juices market.
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Labour coast - Increase labour cost.
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Inflation rate - Increase inflation rate very fast. In 2014 expected inflation rate 23.3%.
Marketing MIX
Marketing Mix is defined as a set of controllable tactical marketing tools that firm blends to
produce the response it wants in the target market. The marketing mix consists of everything the
firm can do to influence the demand for its products. The many possibilities can be collected into
four groups of variables known as the four P’s that are as follows:
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Product
Price
Place
Promotion
PRODUCT
A Product is ‘anything that is offered to a market for attention, acquisition, use or consumption
& that might satisfy a need or want’
We are going to launch three refreshing flavors of Nestle Fruita Vitals in upcoming years. Cocktail,
Falsa and Strawberry.
INSTITUTE OF MANAGEMENT SCIENCES
BAHAUDDIN ZAKARIYA UNIVERSITY (PAKISTAN)
INTERNATIONAL MARKETING
TERM REPORT (2021)
As Fruita Vitals known the No.1 nectar juice with no contamination among their competitors.
These three new refreshing flavors will lead Nestle Fruita Vitals to their maturity stage as it
already has.
According to Nestle Fruita Vitals PLC Model:
The juices are in between the growth and maturity stage by considering the sales of juices and
the time period that the juices being sold in the market.
PRICE
Nestle Fruita Vitals juices are available in different flavors and different sizes in the market with
100% Nectar. Most common sizes are 200ml and 1000ml. So, the prices of the new flavors of
Nestle Fruita Vitals that we are going to launch will be:
COCKTAIL
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200ml
1000ml
Rs.35.00
Rs.160.00
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200 ml
1000ml
Rs. 30.00
Rs. 155.00
FALSA
STRAWBERRY
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200 ml
Rs. 30.00
INSTITUTE OF MANAGEMENT SCIENCES
BAHAUDDIN ZAKARIYA UNIVERSITY (PAKISTAN)
INTERNATIONAL MARKETING
TERM REPORT (2021)
•
1000ml
Rs. 155.00
PLACE
Place includes company activities that make the product available to target consumers. It is the
very important element of the marketing mix. Place is also known as channel, distribution, or
intermediary. It is the mechanism though which goods and/or services are moved from the
manufacturer/service provider to the user or consumer.
We are going to launch three refreshing Fruita Vitals flavors in Lahore. In the beginning we will
target only Youth.
Distribution Strategies
We choose the intensive distribution strategy to ensure widespread availability of new flavors.
We will supply these three new flavors in supermarket, hyper market, food stores, corner shops,
café, restaurant, hotels, airports, railway stations, school and college and university canteens and
bus depot on the basis of product demand so that the consumer can get the product easily.
Warehouses and Distribution Centers
For the storage of juices, we will buy specialized distribution centers and warehouses in Lahore,
Sheikhupura and also hired some warehouses.
Wholesaler and Retailer
We will sell new flavors of Nestle Fruita Vitals directly from its warehouses or distribution centers
to the wholesale corporate customers such as Hyper-stars, Metro Cash & Carry, by giving them
large bulk discounts. We will also sell our juices to mega retailers. We will pay to use the shelf to
store the juices to the retailer for sale to the final consumers. We will place our juices in the right
places and right shelves and make sure they are visible to consumer.
Mode of Transportation
Our mode of transportation will be road transport.
Inventory Management
For the inventory management of raw materials, goods in progress and finished good we will
keep the record in our system of each and every flavor of juice we produced, where it is currently
and how much time it took to reach the final customer.
PROMOTION
Promotion is any form of communication a business or organization uses to inform, persuade, or
remind people about its products and improve its public image. A promotional mix is an allocation
of resources among five primary elements:
INSTITUTE OF MANAGEMENT SCIENCES
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INTERNATIONAL MARKETING
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Advertising. (Traditional Media and Social Media)
Public Relations or Publicity. (Celebrity Endorsement)
Sales Promotion.
Direct Marketing.
Personal Selling.
For the purpose of marketing mix we’ll promote 3 newly launched nectars of Nestle Fruita Vitals
by focusing mainly on advertising via Sponsorship of events, Social Media Marketing, TVC,
Electronic boards and Billboards.
As the target audience is Generation Y and Z that is youth, so promotion would be done through
sponsorship of the coming World Cup, Summer Festivals specifically in leading universities of the
Lahore city e.g., Lahore School of Economics, Lahore University of Management Sciences,
University of Central Punjab and University of Management and Technology. Adding to this, we’ll
sponsor events in Punjab College, Kinnaird College and Lahore College just to target the youth of
colleges.
We’ll also place advertisement on billboards near schools, colleges and universities to cater the
targeted market. We’ll place billboard on main boulevard Iqbal Town, opposite to University of
the Punjab, and near Niazi chowk closer to Government High School. We’ll do marketing by
displaying ads on electronic boards on MM Alam Road. Along with this we will sponsor the events
like, Summer Fest, Daachi (Arts and Crafts), All Girls Band: Live in Concert etc.
For Social Media audience, we will capture them by consumer promotion on the search engine
or home page of Nestle and target them by involving them in gifts, prizes and coupons by sending
the maxim number of selfies with the new flavors to the Team of Nestle Fruita Vitals on the
Facebook page.
For TVC, w will play ad of 60 seconds endorsed by Wasim Akram and Fawad Khan on Geo, ARY
and HUM for 2 times in an hour. The ad will be displayed from 7am to 9am in the morning and
8pm to 11 pm in the night for the period of 6 months. And in the season of World Cup, we’ll do
bombardment of advertising on PTV Sports during over break, lunch break or game break.
Total Budget approximated for the above-mentioned promotional activities will be Rs 2.5 crore.