Course Title: Principles of Marketing
Submitted To: Madam Shehla Sohail
Institute of Management Science Lahore
Group Members
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Raheel Khalid
Uzma Tahir
Abida Parveen
Sehrish Qamar
081193
081181
081140
073122
Acknowledgement
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
All thanks and praise for Almighty Allah
who blessed us and enabled us for the
completion of this research project. We
feel much pleasure in expressing our deep
regard and gratitude for our course
instructor madam Shehla sohail.
We are also profoundly obliged to the
valuable co-operation of Mr. Muhammad
Hussein from nestle sales department. And
the brand manager of NPL Mr. Shehzad
Qamar and distribution manager Mr. Tariq
Usman.
EXECUTIVE SUMMARY

In this research project we are going to study the marketing
strategies of Nestle pure water. Nestle is old entrant in the pure
water market and is facing a competition from other brands like
Aquafina, Kinlay, Sufi etc.We are focusing on the marketing
strategies of Nestle regarding Nestle pure water.

Nestle came into Pakistan in 1988 when they first acquired a share
in Milk pack Ltd. Today they are fully integrated in Pakistani life,
and are recognized as producers of safe, nutritious and tasty food,
and leaders in developing and uplifting the communities in which
they operate. Nestle Pakistan ensure that t there products are made
available to consumers wherever in the country they might be.
Convenience is at the heart of the Nestle philosophy, and there aim
is to bring products to people's doorsteps.
Introduction
Nestle with headquarters in Vevey, Switzerland was
founded in 1866 by Henri Nestle and is today the world's
biggest food and beverage company
Nestle's existing products grow through innovation and
renovation while maintaining a balance in geographic
activities and product lines.
The Company's priority is to bring the best and most
relevant products to people, wherever they are, whatever
their needs, throughout their lives.
History
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
In the 1860s Henri Nestle, a
pharmacist, developed a food for
babies.
People quickly recognized the value
of the new product, after Nestle's
new formula saved the child's life,
and soon, Farine Lactée Henri
Nestle was being sold in much of
Europe.
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The end of World War II was the
beginning of a dynamic phase for Nestle.
Growth accelerated and companies were
acquired
. Nestle divested a number of
businesses1980 / 1984. In 1984, Nestle's
improved bottom line allowed the
Company to launch a new round of
acquisitions, the most important being
American food giant Carnation.

The first half of the 1990s proved to be
favorable for Nestle: trade barriers crumbled and
world markets developed into more or less
integrated trading areas. Since 1996 there have
been acquisitions including San Pellegrino
(1997), Spillers Petfoods (1998) and Ralston
Purina (2002). There were two major
acquisitions in North America, both in 2002: in
July, Nestle merged its U.S. ice cream business
into Dreyer's, and in August, a USD 2.6bn
acquisition was announced of Chef America,
Inc.. In 2006, Jenny Craig and Uncle Toby's
were added to the portfolio.
Nestlé's Products
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BOTTELED WATER:
Today, Nestle is a thriving business with
headquarters in Paris. In 2006, it sold its
72 brands of bottled water worldwide.
The international brands of Nestle
Waters are familiar on tables throughout
the world
BABY FOOD:
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The production of infant food goes right back to
the origins of the Nestle Company. Henri Nestle's
'Farine Lactée' was the first product to bear the
Nestle name.
In 1867 a physician persuaded Henri Nestle to
give his product to an infant who was very ill he
had been born prematurely and was refusing his
mother's milk and all other types of nourishment.
Nestle's new food worked, and the boy survived.
From the very beginning,
DAIRY PRODUCTS:

Nestle has long been a major
player in the dairy industry,
originally with well known shelf
stable, i.e., dried milk
powder brands such as Nido,
Nespray, La Lechera and
Carnation. We have been
bringing life to milk since the
very beginnings of our company.
BREAKFAST CEREALS:
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Nestle has a joint venture with General Mills
outside North America, Cereal Partners
Worldwide, which is active in more than 80
countries.
The joint venture began in 1990, and its rapid
growth has been characterized by strong
branding and lately the launching of breakfast
cereal brands into the fast-growing cereal bar
market.
NUTRITIONS
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Nutrition has been a central theme for Nestle
ever since 1867, when Henri Nestle first
invented infant food to help save the life of a
neighbour's child
Today, Nestle has progressed beyond these
beginnings to become a world leader in key
categories of Nutrition, Health and Wellness to
offer our consumers the food choices they need
to achieve the healthy lifestyles they want.
BEVERAGES:
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In 1937, Nestle scientists perfected a powdered
coffee product that was introduced in 1938
under the brand name Nescafe the world's first
commercially successful soluble coffee
Nestle is a major producer of chocolate-based
and malted drinks.
Its leading brands, Nesquik, Milo and Nescau
are very popular with a growing number of
young people around the world
PREPAID FOODS :

The Society commissioned Julius Maggi, a
miller with a reputation as an inventive and
capable businessman, to create a vegetable food
product that would be quick to prepare and easy
to digest. The results two instant pea soups and
an instant bean soup helped launch one of the
best known brands in the history of the food
industry. By the turn of the century, Maggi &
Company was producing not only powdered
soups, but bouillon cubes, sauces and flavorings.
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Maggi merged with Nestle in 1947.
Buitoni, the authentic Italian brand,
which has been producing pasta and
sauces in Italy since 1827, became
part of the Nestle Group in 1988.
PETCARE:

Nestle entered the petcare business
with the purchase of Carnation in
1985, and we consolidated our
position in Europe with the
acquisition of the Spillers brand in
1998, and further with the acquisition
of Ralston-Purina in 2001, creating
Nestle Purina PetCare.
Nestle in Pakistan
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Nestle has been serving Pakistani consumers
since 1988, when our parent company, the
Switzerland-based Nestle SA, first acquired a
share in Milk pack Ltd.
Today we are fully integrated in Pakistani life,
and are recognized as producers of safe,
nutritious and tasty food, and leaders in
developing and uplifting the communities in
which we operate.

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We at Nestle Pakistan ensure that our products
are made available to consumers wherever in the
country they might be. Convenience is at the
heart of the Nestle philosophy, and our aim is to
bring products to people's doorsteps.
We have 4 factories in Pakistan .one is at
Sheikhu pura, one is Islamabad and two
factories are in Karachi.
Marketing and Sales

Nestle products are within reach for every
single Pakistani. Yet nutritional value and
quality remain the most essential ingredients
in all our brands.

All our key brands are equipped with the
Nutritional Compass that ensures all the
nutritional information about the product is
accessible thanks to our user-friendly
nutritional labeling and guidelines.
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Nestle Consumer Services is the main interface
between you and the company, and we make
every effort to ensure that your voice is heard.
After all, it's your satisfaction that really counts
Our communications to the consumer are
relevant, cutting-edge, and adhere to the highest
standards of responsible communication. Our
company is seen as the No. 1 career destination
for talented, motivated and ambitious
professionals
PORTFOLIO ANALYSIS OF NESTLE
(BCG MATRIX)
STAR
?
Juices, cereals
Cash cow
Nestle pure water ,milk
Noodles, Nescafe
Dog
POLO (local manufactured)

Our proactive innovation and renovation culture is the
key to our success in the marketplace. Fully integrated
systems (Nestle Pakistan, suppliers, customers) ensure
efficient business processes.
NESTLE WATER

Every bottle of NESTLE Pure Life is
produced with the Nestle Safety System
and is carefully sealed with a
proprietary seal. An optimal balance of
essential minerals, enhancing the health
and wellbeing of your family, matches
purity of the highest standards.
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For your convenience NESTLE Pure Life is
available in non-returnable 330ml, 0.5 liter and
1.5 liter bottles at retail outlets and Bulk bottles
for Home & Office Delivery in 19 & 12 liter (12
liter is available at retail outlets
#2biggest brand worldwide
21countries where Nestle PURE LIFE is
distributed
400glasses of Nestle Pure Life were drunk every
second around the world in 2005
SWOT Analysis
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Marketing strategies are being made after the
analysis of external and internal audit.
External factors include the market threats
and market opportunities, while internal
factors include the strength and weakness of
product
SWOT ANALYSIS
Strength
Weakness
Opportunities
Threat
Strength
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
Nestle water is no. 1 selling water in Pakistan.
Nestle is world famous brand name and people trust
them
Mostly the people who buy Nestle water are
health conscious so they use Nestle water, as
it is hygienic and good for health.
The supplies network of Nestle pure water is
the biggest in Pakistan.
Weakness:

Price of the Nestle is not very
economical and Income level of
Pakistan is low and most of the people
lies in lower middle class so they
cannot afford Nestle pure water. Nestle
is a very big company so their decision
making process is up to mark.
Opportunities:
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
Now a day’s people are more aware and they are getting
health conscious day by day, they know that tap water is
not safe for their health
Now a days the trend has been settled in most of the
offices, banks, universities and even in homes people
are using dispensers instead to water filters or using the
tap water so that open the new opportunities for the pure
drinking water
Threats:

Many big competitors like coca cola and Pepsi are
now in the market and they are investing heavily in
Pakistan in into pure water industry so it is always
difficult to compete with big competitors.
Strategies on the basis of SWOT
analysis
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Cost leadership strategy
Product differentiation strategy
External and internal factors
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Internal factors
Following are the internal factors affecting
our policies

Customer:
nestle have the largest number of
customer in Pakistan’s water industry.. Nestle have
market share of 65% of water industry in Pakistan,
this figure depicts that we have captured a largest
number of consumer of pure water in Pakistan.
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Supplier:
Nestle don’t have such suppliers they have their
own production of bottles and we use tap water
as a raw material
Distributors:
We have three channels of distribution:
Modern trade
Traditional trade
Horica (food services)
Competitor:
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MAIN COMPITITORS
AVA
AQUAFINA
KINLAY
ASKARI
NAEMAT
GREEN LAND (PURE WATER )
WATER SURVEY
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As per Retail Audit - Year 2007
Bottled Water Selling Outlets in Franchise:
5372
OUTLETS
%AGE
Outlets with Nestle Availability:
4004
74.53%
Outlets with Askari Availability:
480
8.94%
Outlets with Aquasafe Availability:
266
4.95%
Outlets with Others Brands Availability: 1976
36.78%
External factor
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Following are the external factors that affect our
marketing strategies of nestle pure water.
More the education more will be the awareness about
brand and quality food.
If the income level of people is high then purchasing
power will be high so they will purchase more
Consumption behavior of Pakistani people is high so
they consume more goods
As Pakistan is Muslim country so we cannot add any
ingredient which is prohibited in Islam or which is not
“Halal”.
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If the inflation rate is high then there will be
decrease in purchasing power .so inflation
indirectly affects the company’s sale.
As nestle water is the branded item so the
people who are brand conscious will prefer to
use nestle water .so nestle is focusing more on
the posh areas.
Distribution of nestle water is easy in those
cities where infrastructure is good enough.
MARKET INFORMATION SYSTEM(MIS)

Survival in market especially in the presence of large number
of competitor is not an easy job. One should always be well
aware about the environment. what is there competitor doing
what strategies they are following that is the feedback of
customer of our products and what customer wants. from our
information system we came to know about…..

What are the competitors market making water?
what price they are charging from customer?
What type of packing is attracting the customer?
What is purchasing power of people of a particular area?
What is the budget of competitors on advertisements?
Etc……..
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Our source of gathering information are:
 Research
 Team operating in the marketing
After gather the required information we
formulate our marketing strategies and
plains.
PRE MARKETING MIX
In pre marketing we segment the market, then
target the market, after targeting we try to build the
image on our target customers and increase the sale
by differentiation.
SEGMENTATION
Market is segments on different parameters such
as;
 Size of a particulars market
 Income level
 Consumption pattern
 Growth of particular segment itself
 Geographic location.
 Age group
TARGETING

Nestle is targeting mainly on those city in
which density of population is high such as
Lahore, Karachi, Faisalabad etc. Nestle is also
focusing on educated class because they know
the values of health in life.
POSITIONING

We position nestle water as a safe & healthy
water for the entire family & for all
consumption needs. Nestle is famous all over
the world due to its quality product. So its
image in the mind of people is very good. The
positioning of Nestle pure water is very
positive in the minds of consumers.
DIFFERENTIATION
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Our service is very efficient as compared to others.
Nestle is now supplying water door to door for their regular
customers.
Nestle water is available now in many packing they are more
convenient as well a
s economical.
For your convenience Nestle water is available in nonreturnable 330ml, 0.5 litter and -1.5 litter bottles at retail
outlets and Bulk bottles for Home & Office delivery in 19 &
12 liters (12 liter is available at retail outlets).
Their quality check is much better than others so there is no
need to bother about the quality and the taste of water
MARKETING MIX
1.
2.
3.
4.
Product
Price
Place
Promotion
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Attributes
Branding
Packaging
Labeling
Product support
PRODUCT

Nestle Pure Water
Our selected product of Nestle is Nestle pure
water. Nestle water is consumer goods. As
consumer goods include:
1. Convenience good
2. Shopping good
3. Specialty good
PRODUCT ATTRIBUTES
1. Product quality
2. Product features
3. Product design
PRODUCT QUALITY
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Quality is one of the marketer's major positioning tools.
Quality has two dimensions level and consistency.
Product quality means the ability of a product to perform its
functions. It includes the product's overall durability,
reliability, precision and other valued attributes. Nestle has
chosen the quality level that matches target market needs and
wants.
Beside quality level, Nestle consistently delivers the desired
level of quality to consumers. Always strives for high level of
quality consistency.
PRODUCT FEATURES
1. Quality
2. Availability
3. Convenient prices
MAJOR REASON FOR USING THE
BOTTLED WATER
Water of international
standards, 2%
Doctor advised, 2%
It tastes like sweet
natural water, 1%
Affordable, 1%
Free of germs
Use for children, 1%
Clean
Artificially purified
water, 0%
Good for health
Use while traveling
Easily available, 5%
Well reputed
brand, 6%
Use while
traveling, 8%
Free of germs,
49%
Well reputed brand
Easily available
Doctor advised
Water of international standards
It tastes like sweet natural water
Good for health, 11%
Affordable
Use for children
Clean, 16%
Artificially purified water
Brand Awareness
Ad on Bus, 2%
Banner, 2%
Doctor, 3%
Board/ Hoarding
Board, 3%
N.Papers, 2%
Television
DK, 2%
Others, 0%
Relatives/Friends
Poster
Already know
Already know , 4%
Board/ Hoarding Board
Poster, 4%
Doctor
Television, 51%
Relatives/Friends
5%
Shop/Shopkeeper,
20%
Shop/Shopkeeper
Banner
Ad on Bus
N.papers
DK
Others
PRICE
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Nestle water is not lie in necessities so its price should not be
very high
Price should be set according to the product demand of
public.
Price should be that which gives us more revenue.
Price should not be too low or too high than the price
competitor is charging from their customers otherwise
nobody will buy your product.
Price should be that by those customers are motivated to buy
more.
Price must be keeping the view of your target market
INTERNAL FACTORS AFFECTING PRICING
DECISION
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Market share leadership
Product-quality leadership
COST
EXTERNAL FACTORS AFFECTING
PRICING DECISIONS
 GENERAL PRICING APPROACHES
Nestle set its pricing strategy based on two
pricing approaches.
1. Cost-based pricing
2. Competition-based pricing
PRODUCT MIX PRICING STRATEGY
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Product-line Pricing
Discount and allowances pricing
Functional discount
Seasonal discount
Promotional pricing
PLACING
DISTRIBUTION CHANNELS
1. Direct marketing
2. Marketing through distributors
PROMOTION
FACTORS IN SETTING THE PROMOTION MIX
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Consumer Product
Push Strategy
Purchase state
PROMOTION MIX
ADVERTISING MEDIA
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Television
Newspapers
Magazines
Future plans
Nestle is planning to enhance its investments in Pakistan and by
the year 2014, its total stakes would reach an aggregate of $374
million. The company has chalked out long-term investment plan.
Nestle is setting up a most modern and latest milk plant with the
cost of $ 70 million which will be operative within next couple of
months. Company would invest to the tune of $209 million in
five years period ending 2009. Nestle is investing $70 million in
milk production by increasing capacity of milk powder by 40,000
tones annually; $44 million would be injected in Sheikhupura
factory, $12 has been allocated for expanding milk collection,
and $31 million in bottled water plants.
CONCLUSION
The objective of this research was to study marketing strategies
of nestle pure water. From our report it is concluded that nestle
has a good reputation as a strong consumer brand. 66% of the
consumers use Nestle’s products regularly. 60% of the
consumer’s associate quality with Nestle.57.3 % of the
consumers prefers Nestle over other brands of pure water that are
available in the market .66% consumers bought Nestle water
because of its brand image which is of good quality products.
This is also proved by the statistical and graphical analysis of the
data obtained from consumers that they are quite satisfied from
nestle pure water. Nestle formulating a good strategy and they are
trying to go for mass-marketing.
SUGGESTIONS
Nestle’s pure water need to expand their customer equity.
Though 57.3% people prefer Nestle over other brands 43% prefer
others. Nestle should benchmark with other brands to compete in
this industry.
Nestle should improve its promotional activities on television
regarding nestle pure water.
Nestle’s pure water are expensive so they should decrease their
prices as big competitors like Aquafina enter into this industry.
Aquafina beat nestle in almost every country except Pakistan .So
nestle should defense their position.
58% consumers use this product occasionally, 24%
weekly and 14.7% daily. Nestle should try to
increase this usage rate through new users by
advertising, more usage by convincing people about
the high quality of the juices.
Flavored water should be introduces in Pakistani
market. From this they can differentiae their product
from others and they can get more market shares.