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Submitted To:

Mr. Jawad Saleem

Submitted By:

Ali Ashfaq

M. Javeed Sardar

Moazzam Riaz

Muneeb AkramKashif Ali

TABLE OF CONTENTS

PREAMBLE 3

MARKET 5

MARKET DEMOGAPHICS 5INDUSTRY ANALYSIS 6

MISSION STATEMENT 6

VISION STATEMENT 7

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ORGANIZATION PORTFOLIO 8

NESTLES HISTORYAND INNVATIONS12

First cameinfant and milk nutrition 13

CONTRIBUTION TO OTHER SECTOR 15

REGIONAL SALES OFFICES 18

RATIO ANALYSIS isuseful essentially for : 19

Competitor Analysis 20

WATER 21

NESTL PureLife PET Bottles 21NESTL PureLife Home & Office Service 21

AVA & FONTALIA 21

NESTL PURE LIFE & BULK WATER 22

SEGMENTATION STRATEGY 22

TARGET MARKET 23

POSITIONING 23

INDUSTRIAL SWOT ANALYSIS 23

SWOT ANALYSIS 24

MARKETING MIX 25

1-PRODUCT 25

PRODUCT TYPE: 26PRODUCT ATTRIBUTES: 26

BRAND NAME: 26

BRAND POSITIONING: 26

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BRAND IMAGE: 26

BRAND EXTENSION: 26

PACKAGING: 26

LABEL: 27

2-PROMOTION: 27

3-PLACE: 28

4-PRICE: 28

STRATEGIES FOR CREATING COMPETITIVE ADVANTAGE 29

DIFFERENTIATION STRATEGY: 29OVERALL EXCELLENCE STRATEGY: 29

CONSUMER ANALYSIS 30

SUGGESTIONS 31

PREFERENCES 32

PREAMBLE

Praise to beAllah Almighty , the one testing us all at all times and making decisions aboutwhat we dont know and cant know.

Today it is impossible for a common man to run the business especially in this period of competition. This situation demands energetic, duly qualified experienced businessadministrators who could meet the challenges of this age of modernization. PAK AIMSproduce management specialists fully aware of the ins and outs of the businessmanagement, and capable of meeting the challenges of modern business environment.

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In this project we discussed how started workings what are the objectives and goals of theorganization nestle and what are the products and services offered by the company to itstarget customers. We made a marketing plan for NESTLE PURE LIFE that how themarketing share of this product can be increased what strategies should use for thispurpose. We elaborate all the aspects of the marketing plan in this project.

MARKET

Markets may be any of a variety of different systems

Markets vary in size, range, geographic scale, location, types and

variety of human communities

Market is any structure that allows buyers and sellers to exchange anytype of goods, services and information

Market facilitates trade and enables the distribution and allocation of

resources in a societyMarkets allow any tradable item to be evaluated and priced

MARKET DEMOGAPHICS

Population: 180,000,000

Growth rate: 1.828%

Birth rate: 27.74 births/1,000 population

Death rate: 8 deaths/1,000 population

Net migration rate: -1.24 migrant(s)/1,000 populations

0-14 years: 40% (male 33,293,428; female 31,434,314)

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VISION STATEMENT

We envision Nestl to grow in the shortest

Possible time into the number one food company in

Pakistan with the unique ability to meet the needs of consumers of every age groupfrom infancy to old age,

For nutrition and pleasure, through development of a large

Variety of food categories of the highest quality

We envision the company to develop an extremely

Motivated and professionally trained workforce, which

Would drive growth through innovation and renovation

We aspire, as a respected corporate citizen, to continue

Playing our due role in the social and environmentalSectors of the country

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ORGANIZATION PORTFOLIO

ESTABLISHMENT:

Nestl was founded in 1866 by Henri Nestl with headquarters in Vevey, Switzerland. Ithas employed around 250,000 people and has factories or operations in almost everycountry in the world.

COMPANYTYPE:

It is one of the world's biggest food and Beverage Companies.

BRANDS:

Nestle offers a variety of brands of which the most well known are Nescafe, Nestl KitKat, Nestl juices and Nestl bottled waters.

Nestls existing products grow through innovation and renovation while maintaining abalance 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.

BRAND PORTFOLIO:In 1992, Nestl was the first company to dare to launch a mineral water, Valvert. TodayNestl Water is established in 130 countries and markets about 70 different brands.

In 1998, for the first time in its history, Nestl associated its name with bottled water Nestl Pure Life.

The brand was launched in Pakistan and soon appeared in Brazil, followed by Argentina,Thailand, the Philippines, China, and Mexico in 2000. In 2001, India, Jordan, andLebanon followed, and in 2002, Egypt, Uzbekistan and the United States.

Today the Nestle Pure Life brand is present in 20 countries around the world, across allcontinents - Asia, Near East, South and North America and Europe.

Wherever it is to be found around the world, Nestle PURE LIFE answers some crucialconsumer needs, focused on three core pillars: Trust, Quality and Service.

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Nestle PURE LIFE offers an ideal balance between a healthy supply of minerals and apleasant, refreshing taste, making it suitable for the whole family. It contains essentialminerals such as:

Calcium:necessary for building strong bones and teeth,

Magnesium:necessary for muscle contraction and transmission of pulses.

COMPANY FROM FOUNDATION TILL NOW

1866 Company's foundation

1905 Merger between Nestl and Anglo-Swiss Condensed Milk Company

1929 Merger with Peter-Cailler-Kohler Chocolate Suisse's S.A.

1947 Merger with Alimentana S.A. (Maggi)

1971 Merger with Ursina-Franck (Switzerland)

1985 Acquisition of Carnation (USA)

1988 Acquisition of Buitoni-Perugina (Italy)

1988 Acquisition of Rowntree (GB)

1992 Acquisition of Perrier (France)

1995 Nestl acquires Victor Schmidt & Shne, Austria's oldest producer of confectioneryincluding the famous 'Mozartkugeln'.

1997 Nestl, through the Perrier Vittel Group, expands its mineral water activities with thoutright acquisition of San Pellegrino.

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1998 Nestl acquires Spillers Petfoods of the UK and strengthens position in the petfoobusiness which began in 1985 with the acquisition of the Carnation Friskies brand.

1999Divestiture of Findus brand (except in Switzerland and Italy) and parts of Nestlfrozen food business in Europe.Divestiture of Hills Bros, MJB and Chase & Sanborn roast and ground coffee brand(USA).

2000 Acquisition of Power Bar.

NESTLES HISTORY AND INNVATIONS:

The key factor which drove the early history of the enterprise that would become TheNestl Company was Henri Nestl's search for a healthy, economical alternative tobreastfeeding for mothers who could not feed their infants at the breast.

In the mid-1860s Nestl, a trained pharmacist, began experimenting with variouscombinations of cow's milk, wheat flour and sugar in an attempt to develop an alternativesource of infant nutritionfor mothers who were unable to breast feed. His ultimate goalwas to help combat the problem of infant mortality due to malnutrition. He called the newproduct Farine Lacte Henri Nestl.

Nestl's first customer was a premature infant who could tolerate neither his mother'smilk nor any of the conventional substitutes, and had been given up for lost by localphysicians. People quickly recognized the value of the new product, after Nestl's newformula saved the child's life and within a few years, Farine Lacte Nestl was beingmarketed in much of Europe.

Henri Nestl also showed early understanding of the power of branding. He had adoptedhis own coat of arms as a trademark; in Swiss German, Nestl means 'little nest'. One of his agents suggested that the nest could be exchanged for the white cross of the Swissflag. His response was firm: "I regret that I cannot allow you to change my nest for aSwiss cross .... I cannot have a different trademark in every country; anyone can makeuse of a cross, but no-one else may use my coat of arms."

Meanwhile, the Anglo-Swiss Condensed Milk Company, founded in 1866 by AmericansCharles and George Page, broadened its product line in the mid-1870s to include cheeseand infant formulas. The Nestl Company, which had been purchased from Henri Nestlby Jules Monnerat in 1874, responded by launching a condensed milk product of its own.The two companies remained fierce competitors until their merger in 1905.

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Thus Nestl became the heir to inventions such as Daniel Peters milk chocolate (1875)and Julius Maggis vegetable-based soups (1884) and stock cubes (1908).

Nestl accumulated knowledge, as well as the perseverance and competence of scientistslike Max Morenthaler, made possible the huge success of the Nescafe launch in 1938.

Subsequent acquisitions opened doors to new areas, such as

Preserves (Crosse & Blackwell 1960),

Frozen foods (Findus, 1962),

Mineral water (Vittel, 1969)

Pet care (Carnation, 1985).

Others reinforced the companys position in established areas, for example,Italian cuisine (Buitoni, 1988),

Chocolate and confectionery (Rowntree,1988)

Performance foods (PowerBar, 2000).

At the same time, reseat at Nestl resulted in the development of new products such as

Milo (1934),Nestea (1944),

Nesquick (1948),

NAN (1962),

Yes (1979),

Nespresso (1986),

LC (1994) and

Nestl Pure Life (1998).

Existing products such as Nescafe, Maggi culinary products or the various dairy productshave been constantly improved and adapted to current consumer life-styles.

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Registered & Corporate Office

308 Upper Mall, Lahore

PABX : (042) 5757082-95

Fax : (042) 5711820

Factories

Sheikhupura

29th Kilometer, Lahore- Sheikhupura Road

Sheikhupura, Punjab, Pakistan

Kabirwala

Khanewal Kabirwala Road, Kabirwala

District Khanewal, Punjab, Pakistan

Phone : (06512) 411433-36

Fax : (06512) 411432

Auditors A.F. Ferguson & Co. (Chartered Accountants)

Legal Advisors Cheema & Ibrahim (Advocates)

Bankers ABN AMRO Bank

Bank of Tokyo-Mitsubishi Ltd.

Citibank N.ACredit Agricole Indousuez

Deutsche Bank A.G.

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Habib Bank Ltd.

Muslim Commercial Bank Ltd.

Standard Chartered Bank.

REGIONAL SALES OFFICES

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Karachi

F-77/1, Block 7,

Clifton, KDA Scheme 5,

Karachi, Sind, Pakistan.

Phone : (021) 5833935-6

Fax : (021) 5833937

Hyderabad

178, Block C, Unit 2 Latifabad,

Hyderabad, Sind, Pakistan.

Phone : (0221) 860403

Fax : (0221) 863202

Lahore

29-b, Main Gulberg,

Lahore, Punjab, Pakistan

Phone : (042) 5754335-6, 5752582

Fax : (042) 5761491

Multan

Surij Miani Road, Chungi No. 1,

Multan, Punjab, Pakistan.

Phone : (061) 515061

Fax : (061) 515057

Faisalabad

Al Haq Plaza, 271-A,

Small D Ground, Peoples Colony

Faisalabad, Punjab, PakistanPhone : (041) 546993, 734538

Fax : (041) 543538

Gujranwala 23, D.C. Road.

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Assessment of earnings and dividend prospects.

Growth in economic value of investments with respect to the risks undertaken.

Bankers/Creditors concern

Assessment of the ability of the business to service its debt obligations.

Debt coverage.

Proper utilization of assets financed.

Government's concern

Evaluation of the economic contributions of the business entity.

Determination of the entity's financial strength to carry social and developmentalprograms.

THE ANALYSIS

The financial ratios discussed here are those which are derived simply and directly fromfinancial statements. These ratios are used in analyzing the financial statements inordinary course of business activity. The ratio analysis can be divided into three broadcategories:

The Solvency Ratios.

The Efficiency Ratios.

The Profitability Ratios.

Competitor Analysis

NESTLE Aquafina

Sufi

Kinley

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Other

TOTAL SHARE

9072000

TOTAL SHARE OF COMPETITORS

NESTLE 2903040 AQUAFINA 1995849

SUFI 453600

KINLEY 1451520

OTHER 2268000

WATER

NESTL Pure Life PET Bottles

The year 2001 saw the successful completion of three years of outstanding business for NESTL Pure Life PET Bottles of 0.5 and 1.5 liters. The exceptional brand successwas the result of expanding national distribution and an increasingly loyal customer base.

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The brand has revolutionized the Pakistani market by tapping the real consumer need for pure, healthy, and safe water and has successfully dominated a key strategic business

NESTL Pure Life Home & Office Service

In 2000, NESTL Pure Life established a successful Home and Office (H&O) deliveryservice in Lahore, which has substantially grown ever since and has come to dominatethe 5- gallon market. Successful marketing and sales strategies offer greater convenienceand better value to the consumers. The brand is poised for strong growth in future.

AVA & FONTALIATo expand its H&O water delivery business countrywide, Nestl acquired major shareholdings in both these businesses in 2001. While AVA is an important national player inthe branded bottled water category, both in PET and H&O services

NESTL PURE LIFE & BULK WATER

The launch of Nestl Pure life in December 1998 was a truly historic event. This marksNestl Milkpak's entry into the country's fastest growing water market. At the same timePakistan became the first country where Nestl launched this new worldwide brand. It

has been launched in 11 markets internationally with its lead and best performing marketbeing in Pakistan. The reporting of Nestl Pure life is not directly under the Nestlheadquarters at Vevey, Switzerland. Rather all the water brands at Nestl have to reportto Perrier Vittel, the pioneer and lead French Brand in the water market. Other than that,all the research concerning the contents is carried out at the Research Center at Vevey.

SEGMENTATION STRATEGY

Psychographic Segmentation

Demographic Segmentation

Geographic Segmentation

Behavioral segmentation

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TARGET MARKET

Targeting Strategy Of Nestle Pure Life Is Differentiated Marketing

Nestle Pure Life Targets Both Genders

Targets The Upper And Middle Class People Who Are Health Conscious

Tourists Are Also The Target Market Of Nestle Pure Life

POSITIONING Newly Drinking Water With Safety And Security

Pure Water Pure Relationship

Safe And Healthy Drinking Water

Public Awareness Message

INDUSTRIAL SWOT ANALYSIS

Strengths

the lifestyle of the people is changing

DEMAND is increasing day by day in the bottle Water

Weaknesses

the lack of awareness and the poverty the lack of availability in the remote areas is also thestrong reason

Opportunities

people are becoming more health conscious

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Threats

Low Entry Barrier

Economical Uncertainty

SWOT ANALYSIS

Strengths:

High Quality Obtained By The Usage Of A Special Production Process.

Own Industrial Laboratories That Perform Constant Control For Physical-chemical And Bacteriological Parameters.

Daily Sensor Water Analysis for Flavor, Color And Odor.

Great And Neutral Taste Which Suits All The Family

Safety And Purity From The Source To The Consumer

Produced Locally, Close To The Consumer.

Weakness: Nestle Pure Life Is Relatively Expensive Than Other Brands.

Opportunities:

Water Is An Essential Part Of Life And Everyone Prefers To Drink SafeAnd Healthy Water.

Nestle Is A Trusted Brand For Providing Good Quality Products.

Threats: Tough Competition From Aquafina And Kinley.

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MARKETING MIX

1-PRODUCT:

Nestl Pure Life is drinking water that has been treated and rematerialized using astandardized industrial process to ensure purity and quality. Pure and Safe Nestle PURELIFE refills your body with water to maintain a good level of hydration. It provides abalanced mineral formula (on average 150-170 mg per liter), contributing to dailymineral requirements.

Structure of water

Mineral Component Concentration,not more

General mineralization (mg/l) 220 mg/lCalcium 40 mg/lMagnesium 15 mg/lPotassium 20 mg/lBicarbonates 60 mg/lFluorides 0,6 mg/lHardness Mg-eq/l 3

PRODUCT TYPE:

It is a consumer product and a convenience good.

PRODUCT ATTRIBUTES:

Nestle Pure Life is a pure, safe and healthy, colorless and odorless drinking water with apleasant taste.

BRAND NAME:

Nestle Pure Life.

BRAND POSITIONING:

Premium drinking water

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BRAND IMAGE:

Safe and healthy water

BRAND EXTENSION:

Nestle is soon introducing flavored water in lemon, orange, raspberry and strawberryflavors.

PACKAGING:

Nestl PURE LIFE is available in a wide variety of packaging formats to suit allconsumer needs and consumption occasions. Packaging is innovative to meet theindividual needs of consumer all over the world.

The range of formats extends from the individual bottle for on-the-go consumption (0.33l

to 0.5l), to the family size bottle (1.5l) and on to larger formats of 5 gallons (18.9l) for in-home and office usage.

Nestle PURE LIFE 18.9-liter bottles have a protective cover, so that the consumer canimmediately define, that the product was delivered from the factory. Its proprietarydesign equally protects the brand from counterfeiting.

Nestl Pure Lifes originality lay in the use of an all-new plastic, P.E.T. (polyethyleneteraphthalate), which is stronger and more elastic than the PVC. Besides, P.E.T. isrecyclable.

Nestl PURE LIFE is bottled when possible in the country, or at least in the region whereit is sold, combining the benefit of a local production and the strength of a worldwidebrand.

LABEL:

The label provides information like quantity, mineral contents, logo, manufacturing dateand best before date. Consumer service number is mentioned and stamp of PSQCA withlicense number is also mentioned.

2-PROMOTION:

Nestle Waters Coolers has been a part of Nestle Waters since 2003 and represents NestlePure Life brand. Service quality has always been the main driver of HOD business. Theyare using television and radio advertisements in electronic media. In print media they areusing billboards, newspapers, pole signs and posters.

In big departmental store they have display corner in which Nestle Pure Life isrefrigerated. Moppies are also used for advertisement in these stores.

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In summers direct marketing is used for promotion by providing cool points of NestlePure Life where chilled Nestle Pure Life is available for instant drinking.

3-PLACE:

Nestle Pure Life is a convenience good and is frequently used therefore it has been placedon all big and small stores to make it available everywhere. The type of placement usedfor nestle pure life is spot exchange.

4-PRICE:

Nestle pure life is following brand pricing through which it provides functional andpsychological satisfaction to its target customer. The pricing strategy of Nestle Pure Lifeis market skimming.

Prices of Nestle Pure Life are relatively higher than their competitors. Market prices of

individual consumables (0.33l to 0.5l) are Rs.10 and Rs.13. The price of family sizebottle (1.5l) is Rs.24 and of large bottles of 5 gallons (18.9l) is Rs.130

PRICE

PRODUCT

PROMOTION

PLACE

MARKETING MIX

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STRATEGIES FOR CREATING COMPETITIVE ADVANTAGE

DIFFERENTIATION STRATEGY:

They have developed a very visible image of their water that it is safe and healthy and isPURE LIFE in true sense.

OVERALL EXCELLENCE STRATEGY:

Nestle is a trusted brand and its products are consider to best and of very high qualityworld wide. This is a very important competitive advantage of Nestle Pure Life.

Introduction Growth Maturity Decline

Characteristics

Customers Innovators Mass Market Mass Market Loyal Customers

Competition Little if any Increasing Intense Decreasing

Sales Low levels, thenrisingRapidGrowth

Slow/no annualgrowth Declining

Profits None Strong, thenat peak Decliningannually Low/none

MarketingImplications

Overall Strategy MarketDevelopmentMarketPenetration Defensive Efficiency

Costs High per unit Declining Stable or increasing Low

Product Strategy Undifferentiated Improveditems Differentiated Pruned Line

Pricing Strategy Most Likely highLower over time Lowest Increasing

Distribution Scattered Intensive Intensive Selective

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Strategy

PromotionStrategy

Categoryawareness

BrandPreference Brand Loyalty Reinforcement

CONSUMER ANALYSIS

Motivational factors to buy nestle

When you use bottled water?

Buy preferences

SUGGESTIONS They should introduce 0.20l water glass of Nestle Pure Life whichshould be provide on cool points in summer.

They should set the price of their product in accordance with their competitors price.

Nestle Pure Life should communicate the benefits of drinking it.

Now a day, they are not advertising properly therefore they should focus

on more advertisement so that they could create strong brand loyaltyamong customers.

They should introduce 0.20l water glass of Nestle Pure Life whichshould be provide on cool points in summer.

They should set the price of their product in accordance with their competitors price.

Nestle Pure Life should communicate the benefits of drinking it.

Now a day, they are not advertising properly therefore they should focuson more advertisement so that they could create strong brand loyaltyamong customers.

PREFERENCES

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Muhammad Adeel Aman Khan, Sales Manager Nestle

www.nestle.com

Economy survey of Pakistan 2008

www.Google.com

http://www.nestle.com/http://www.nestle.com/http://www.nestle.com/