ACKNOWLEDGEMENTS

MARKETING PLAN OF NESTLE PURE LIFE

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ACKNOWLEDGEMENTS

First of all we owe to the grace of Allah Almighty who gave us strength, knowledge

and perseverance to undertake and successfully complete the project.

Secondly we would like to thank Ms. Shehla Arifeen for her valuable suggestions and

tips. It would have been difficult for us to complete the project without her worthy

guidance as she, despite of her busy schedule was always eager to provide expert

opinion and suggestions on the subject. We are thankful to her for giving us ample

time and helping us to overcome various problems faced throughout the project.

Finally we would like to thank to all others who assisted and provided help directly or

indirectly and led us to the completion of the project.

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EXECUTIVE SUMMARY

Our project is to propose a marketing plan for Nestle Pure Life 0.5 ml water bottle. Bottled water industry is at the Shakeout stage of product life cycle, increased awareness about health and other issues, is adding to the promotion of this industry.Bottled water is often the consumers’ choice for a healthy beverage that gives them a source of minerals, helps to prevent obesity, and in so doing, reduces the risk of associated healthcare problems.

For our project, we studied the macro and the micro environment to analyze the strengths and weaknesses, opportunities and threats for Nestlé Pure Life. The basic focus of our project is 0.5 ml water bottle of Nestle Pure Life. Market segmentation has been done by focusing Nestle Pure life, positioning and perceptual map have also been discussed.

Our analysis shows that competition in the bottled water industry is tough because now there are other players like Pepsi (Aqua Fina), Coca Cola (Kinley), Sufi and Springley. According to Nestle Pure Life manager the industry is growing at the rate of 100%.

We have proposed certain strategies that will help Nestle Pure Life to improve the profitability and growth of 0.5 ml bottle by focusing on distribution channel and increasing availability of the brand as 0.5 ml bottle purchase is entirely on impulse basis.

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NESTLE PURE LIFE

Nestlé Pure Life, is a safe, healthy, easily transportable, pleasant tasting water for the whole family at a reasonable price.

Nestlé Pure Life is established today in 21 countries across Asia, Middle-East, Africa, North America and Latin America. It is Nestlé Waters' leading brand in volume. The year 2000 experienced accelerated development in Home & Office Delivery.

Nestlé began its entry into the water business in 1969. In 1992, Nestlé was the first company to dare to launch a mineral water. In 1998, for the first time in its history, Nestlé associated its name with bottled water: Nestlé 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, and Lebanon followed, and in 2002, Egypt, Uzbekistan and the United States.

As per now, the Group changed its name to Nestlé Waters, a token of Nestlé's decisive commitment to the bottled water market, which now represents 9% of its sales. Today, Nestlé Waters is established in 130 countries and markets about 70 different brands.

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INDUSTRY ANALYSIS

INDUSTRY OVERVIEW

Pakistan’s bottled water industry is a rapidly growing segment of the beverages sector. The country’s market is comparatively very small on a global scale and was estimated at 33 million liters a year. However, with swift increase in the number of bottled water producers during the last three years, the country’s market is estimated to have grown to 70 million liters with per capita consumption reaching half a liter. The bottled water market is presently growing at a robust rate of 40% per annum. According to a recent study compiled by Zenith International, specialist consultants for Asia Bottled Water Association (ABWA), Pakistan registered the fastest growth of 140% in 2000 amongst the countries in Asia and Middle East region.

There are around 23 players operating in the bottled water sector, that include all small competitors, however the major three players include Nestle Pure Life, Kinley and Aqua Fina. According to industry sources, the number of bottlers scales up well above 70 during summer season due to increased demand for drinking water in summer. However, the much publicized laboratory report published by the Pakistan Council of Research in Water Resources (PCRWR) after conducting a survey of 26 brands in the Rawalpindi and Islamabad region declaring that ‘all the 23 brands available in the market are contaminated while 10 of them are unsafe for drinking’, forced the Pakistan Standards and Quality Control Authority (PSQCA) to make it obligatory for the companies to obtain license from the authority before commencing operation. A total of 18 companies have so far been registered by the PSQCA.

ASIA – THE FASTEST GROWING BOTTLED WATER MARKET

The bottled water industry is one of the fastest growing industries in Asia. Zenith reports stunning growth of 45% across 50 countries in Asia, Middle East and North Africa. Total sales reached 25,270 million liters, more than double the level of 1995. The region is now 23% of global consumption with market value at US$ 4,700 mn. According to Zenith Research and Development Director, ‘the Asian Market is still very young and it is anticipated that volumes will double again to over 50 million liters.

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Table 1.1: Percentage of housing units by source of drinking water and rural/urban, Pakistan 1998

Source of Drinking Water All Areas Rural Urban

Inside Housing Unit 75.04 68.45 89.44Pipe (Nul) 28.08 13.37 60.22Hand Pump 42.07 49.58 25.68Well 4.89 5.50 3.54

Outside Housing Unit 24.96 31.55 10.56Pipe (Nul) 4.18 3.89 4.81Hand Pump 5.06 6.78 1.31Well 5.08 6.98 0.91Pond 2.85 4.03 0.28Others 7.79 9.87 3.24

Total 100.0 100.0 100.0

Source: Population Census Organization, Statistics Division, Govt of Pakistan. '1998 Census Report of Pakistan', Table 3.6, Page-154

BOTTLED WATER MARKET IN PAKISTAN

Bottled water in Pakistan is not considered a ‘beverage’. Beverage processing includes carbonated soft drinks – where Pakistan has the lowest per capita consumption in the world, fruit juices, syrups and juice flavored drinks. Drinking water – and also bottled water – is not considered an important commodity either. Water supply and prices for drinking water and bottled water are not considered under the items in the Sensitive Price Indicator, Consumer Price Index or Wholesale Price Index. From this perspective, it is obvious that Pakistan has low consumption of bottled water.

The bottled water market in Pakistan has witnessed annual growth rates of 40 percent, and after the introduction of Nestlé’s ‘Pure Life’, it had the fastest worldwide growth in bottled water in at 140%. Recent figures estimate a yearly consumption of about 2 litres per person bottled water. Compared with Thailand’s 43 litres and Philippine’s 15 litres per capita consumption, this seems relatively low. But taking Pakistan’s population into account, one has to estimate an annual consumption of 318 million litres. While again, sufficient figures are not available to prove this 964 percent consumption increase in five years, one is able to conclude that Pakistan is a highly dynamic and lucrative market.

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Market expectations are as high in the retail market of bottled water as in the household and operations sector for bulk water. Besides these market expectations, the production of bottled water is also considered quite profitable. It is estimated that a bottle of 1.5 litres has production costs of PKR 12.51 while it is sold for PKR 22. The profit is shared between producing corporations, with PKR 0.66-0.83, and middleman, with PKR 6.66-7.08. By this standard, the producing corporation makes a profit of 4-5 percent while the middleman makes a profit of 27-30.55 percent.

In Pakistan’s water market, there are approximately 20 permanent players. Official figures show an estimated number of 26 corporations, while in summer time, this number increases up to 70. But from the perspective of quality control, PCRWR is witnessing a fluctuation in the market of 50 percent, e.g. half of the brands disappear and are replaced by new brands yearly. In 2005, PSQCA admitted that 200 companies are selling bottled water in Pakistan, but only 27 are registered as maintaining standards stipulated for the product. Regardless of this data, it is unquestioned that Nestlé controls the majority of the market (over 50 percent) with its brands ‘Pure Life’, AVA and Fontalia, while Danone’s subsidy “Sparkletts” holds 12 percent and another local brand “BSW” has an estimated five percent market share.

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STRUCTURE OF PAKISTAN BOTTLED WATER INDUSTRY

Pakistan’s bottled water market comprises of two main segments i.e. retail market and bulk market. The retail market consists of 0.5 litres, 1.5 litres capacity PET bottles. The bulk market consist s of home and office delivers in 12 and 19 litres.

There are around 23 players operating in the bottled water sector. However, according to industry’s sources, this number reaches well above 70 when small unknown operators crop up during summer owing largely to the lax regulation and ineffective monitoring of the sector. Nestlé’s Pure Life brand dominates the retail market with a share of 50 per cent.

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PORTERS FIVE FORCES MODEL

INTENSITY OF RIVALRY

Nestle Pure Life is market leader with market share of 55%. Main competitors of pure life in market are Aquafina of Pepsi, and Kinley. Some other companies are Sparkletts, and Sufi, whereas Askari has closed its business in mineral water industry. Nestle has strict quality controls certified by PSQCA. The competition in market is based on price and quality and Nestle Pure Life has this competitive edge on its competitors. Nestle brand name is also synonymous with quality and has a strong perception in the minds of customers. Competition is based on the fact that which best brand consumers have in their minds. The main focus of the company is to capture the minds of its consumers. Nestle Pure Life has gained this share because consumers trust on this brand is very high.

According to a survey 80% of mind recalls in customers said Nestle Pure Life.

• As water industry is at shake out Stage (source: Asad Ahmed, brand Manager Nestle Pure Life)

• Competition is weakening there are three main players left in the market including Nestle Pure life Kinley and Aquafina

THREAT OF SUBSTITUTES

Water is generally considered as a tasteless, odorless, colorless drink for quenching thirst and fulfilling the human body’s natural needs therefore does not have any substitutes in the true sense. But substitutes would include:

all bottled brands carbonated soft drinks

juices

sweetened drink

energy drinks

tap water

any other beverage available in the market

Main substitute to the bottled water is tap water which is easily available on no costs. Bottled water is covering 7% of Pakistan’s population. The rest of the population is either having boiled water or filtered water.

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NEW ENTRANTS

If some new company will enter in bottled water industry Nestle Pure Life is great barrier for it because Pure life has very extensive distribution network. Except Nestle the market is moderate, having no such entry or exit barriers, because still a larger segment is unserved.

SWOT ANALYSIS

OPPORTUNITIES

1. Profitability:

Increasing awareness is adding to profitability and sales for the strong market palyers.

2. Growth:

Most of the population of Pakistan is using tap water and there is increasing awareness towards safe and bottled water. There is a huge market which can be captured by new entrants. Bottled water has only covered 7% of the population.

THREATS

1. Substitutes:

Bottled water is a part of refreshment beverage market and thus is easily substitutable by other beverages. Water has many other substitutes such as: juices, tap water, carbonated drinks, squashes etc. The biggest substitute is tap water.

STRENGTHS

Nestle has strict quality controls certified by PSQCA Strong Quality perception in the minds

Highly accepted Brand name

Nestle Pure Life has gained this share because consumers trust on this brand is very high.

WEAKNESSES

Established distribution channels of Competitors

MAIN PLAYERS IN INDUSTRY & COMPETITOR ANALYSIS

They have two broad categories of competitors, one is of those which are producing the same product and satisfying the same need those are all other bottled water

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companies. While the others are those who are producing the substitute products to satisfy same need.

o COMPETITORS WITH SAME PRODUCT

There are 23 companies in the bottled water industry of Pakistan. All these are the competitors of Nestle Pure life. Nestle is the commanding brand among all of them as it is having the major share of the market.

ANALYSIS OF COMPETITION FOR NESTLE PURE LIFE

They have two broad categories of competitors, one is of those which are producing the same product and satisfying the same need those are all other bottled water companies. While the others are those who are producing the substitute products to satisfy same need.

o Competitors with same Product

There are 26 companies in the bottled water industry of Pakistan. All these are the competitors of Nestle Pure life. Nestle is the commanding brand among all of them as it is having the major share of the market.

THE MINOR/ MAJOR COMPETITORS OF NESTLE PURE LIFE ARE:

o Tap watero Filtered water

o Jerry Cans

o Boiled water

o Vey

o Springley (Water Launched by Qarshi).

o Aqua Fina (Water Launched by Pepsi).

o Sufi (Water launched by Sufi).

o Kinley (Water Launched by Coca Cola).

POTENTIAL COMPETITORS:

o Haleeb is launching its water.

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1. Aqua Fina:

Pepsi has launched aqua fina nearly a few years back. Aqua Fina has share of 32% in market. Aqua Fina has captured a large share of market because of its strong brand name and strong distribution channel. Aqua Fina bottles are available in 0.5litre, 1.5litre, 300ml, 5 gallons sizes.

Aqua fina has very strong distribution. They have direct distribution system. The product is supplied directly from warehouse to retail outlets without any whole sellers. Aqua Fina in a few years has started serving to all major cities of Pakistan.

Aqua Fina is also focusing on promotions. Recently they have sponsored Marathon race in Pakistan. They also give quantitative discounts (2+1, 4+1etc.) Aqua fina is using reverse osmosis process as Nestle is doing. But their packaging is different from Nestle. Aqua Fina use polythene wrapper on bottles as well as nitrogen gas for packing the bottle which keep its packing more tight.

2. Springley:

Qarshi Industries (Pvt.) Ltd. is one of the largest natural products company in Pakistan. Nearly two years back Qarshi has launched Springley. Springley is successfully competing in market and has captured a share of more than 5%.

Springley Natural Mineral Water comes from the most protected natural source of water deep within the mountainous regions of Northern Pakistan. Naturally rich in minerals and full of nature's vitality, Springley Natural Water is extracted from pure underground source from foothills of Himalayas and then filtered and packed at state-of-the art plant in Hattar NWFP, Pakistan. Qarshi is offering Springley in 500 ml, 1500 ml, and 19 Liter PET Bottles.

Qarshi will be one of the major competitors of Nestle in future because of its brand name which is associated with natural products and its nation wide distribution.

3. Kinley:

Coca cola has recently launched Kinley. They introduced Kinley with reverse-osmosis along with the latest technology to ensure the purity of product. They go through rigorous testing procedures at each and every location where Kinley is produced. Because they believe that right to pure, safe drinking water is fundamental and is a universal need that cannot be left to chance.

Coca cola will be a great threat for Pure Life in future because they can sacrifice profitability on market share. Coca cola also has very strong distribution channel and brand name.

o Competitors with Substitute Product

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Main competitors not only lie among same product category but also among those who are producing substitute product. And in this case of Nestle this is quite evident that substitute products are really capturing the market.

Substitute product includes all beverages other than bottled water those are Tap water, Soft drinks (Pepsi Cola, Coca Cola), Juices (Nestle, Shezan, Country etc.) Energy Drinks (Red Bull etc), Milk and others. They all are satisfying the same need but each has its own value and benefits that the customer will prefer if he/she will go for that product, For example if a Person is thirsty and his preference is Low Price, he will go for the tap water, of his preference is the product which provides taste along with fulfilling the basic need of thirst her will go for Soft drinks, if he prefer refreshment he will go for juices, if he want some energy along with satisfying basic need of thirst he will go for energy drinks, and if he want something good for health and also useful to satisfy thirst he/she will be some cold milk.

That is how these substitute products will capture the market and are the competitors of Nestle. In this regards, soft drinks are the top most competitors of Nestle Pure life and secondly comes the juices.

COMPETITOR ANALYSIS

NESTLE PURE LIFE

Product: Nestle Pure Life (pure, safe and healthy drinking water)

Available SKU’s of Pure Life:

1) 0.5 ml.2) 1.5ml3) 12 lit4) 19 lit

Price: Rs. 15 for 0.5 liter Rs. 28 for 1.5 liters

Place: Retail outlets, drug stores, departmental stores including small shops

Promotion: ATL and BTL

1) Promotion: Nestle is majorly focusing on their promotion side due to the prevailing competition in the market. As the market of water is becoming 3-brands market i.e. Nestle, Aqua fina and Kenly. The new entrants are striving very hard for growth and market share. Recently the company that is Nestle

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has launched an international campaign named “Aqua Land” that remains very successful. The major focus is on ATL and point of purchase i.e. retailer. The advertising budget is set according to what growth sales target they want to achieve or set? The company also consider the last year advertising budget before setting up the next year’s budget. The promotion is divided into two components i.e. consumer and trade promotion.

a) Consumer promotion: Nestle Pure Life considers consumer promotion to stimulate quick sales. The company has very good brand equity, good market share and is in top of the mind of their existing and potential customers. Currently Pure Life has launched a campaign for HOD i.e. no security and deposit for new customers and this remains very helpful in attracting new customers that are very conscious about deposits.

Trade Promotion:

The major focus of Pure Life is on trade promotion due to increasing competition in the market from the other two major players that are Kenly and Aqua fina. The PFME or marketing budget for water is three time greater than the over all standards for the other products. Now the company is focusing on the retailers because now they are considered to be very powerful in deciding which brand is to be placed at product shelf. For that purpose they are heavily incentivized from the pure life and its competitors. Pure life is giving one bottle on the sale of 12 bottles while other are giving three bottles on the sale of 12 bottles. But still pure life is heavily demanded from the retailers due to the high turn over which remains benefit ail for them

(source: Nisar Ahmad, Commercial Group Manager, Water division)

KINLEY

Product: Kinley


Place: Retail outlets, drug stores, departmental stores including small shops


SPRINGLEY

Product: Qarshi is offering Springley. Qarshi will be one of the major competitors of Nestle in future because of its brand name which is associated with natural products and its nation wide distribution.


Place: Retail outlets, drug stores, departmental stores including other small shops

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AQUAFINA

Product: Aquafina is mineral water. Aquafina uses polythene wrapper on bottles as well as nitrogen gas for packing the bottle which keep its packing more tight.


Place: Supplied directly from warehouse to retail outlets without any whole sellers.


SUFI

Product: Sufi bottled water


Place: Supplied directly from warehouse to retail outlets without any whole sellers.


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SEGMENTATION OF MARKET FOR NESTLE PURE LIFE

Nestle has segmented its market differently for their different Packaging of product. Their positioning is same for all because the product is same but the market is different on the basis of size. We are analyzing the segmentation strategy of Nestle Pure life by dividing it into two categories on the bases of its packaging sizes.

Segmentation for Water Bottles Segmentation for carton

o Segmentation for Bottled Water (, 0.5 Liters, 1.5 Liters)

This included all the bottles of available sizes in market that are 0.5 liter to 1.5 liter. First let us differentiate the market for this type of packaging in broader view.

Market Specification: The whole available market for this type of packaging are the out door users. Among this available market we have to find out our target market by segmenting the market and comparing the attributes of market and the product.

Basis of Segmentation: The basis of segmentation used for these sizes of Nestle Pure life are the combination of both demographics and psychographics factors. These variables are Age, Education, Income and Purity conscious People.

o Age: Through the variable of age we have segmented the market into number of markets and our target segment according to the age is from 18 and above.

o Education: Education is one of the key variables for our market segmentation as behavior of the people changes with the education level and the market that we have targeted is the market of literate people who knows the worth of Purity in their lives. Illiterate person even if they have money they would not find any attraction in this product but the educated people who know what purity means to their life and health would certainly attract towards them and they will prefer to buy Nestle pure life instead of ordinary tap water while walking roadside when they feel thirsty for the sake of purity.

o Income Level: Income level is another key factor during the segmentation of market. As income level increase the luxuries of life going to increase and people comes towards the quality with the increase in income level and become less price conscious. Our targeted segment according to this aspect is the market of people whose family income falls in the category of middle, upper middle or high income.

o Purity Conscious people: The people who are psychologically very much health and fitness conscious and they care about the cleanliness and purity of every thing, are among our target market.

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NESTLE’S TARGET MARKET

Target market of Pure Life:

All the people who believes in purity, quality, reliability and do not want to take any risk for their family.

Target market of all competitors: Same


Market share of all competitors:

Market share of Pure Life is around 50 percent while Pepsi has around 17 percent and Kinley has around 8 percent of over all market.

(Soure: Mansoor Ahmad, ABM, Aqua fina)

Among Out door users our target market is the market of those people who are 18 and above in their age and they have atleast basic education which let them know the importance of quality in life and people with high profile of income and psychographically they need to be Purity conscious. The people having all above qualities are our target market for our brand Nestle Pure Life.

o Segmentation for carton (12 liters, 19 liters)

This included the product size of large carton of 12 and 19 liters of water. First we will differentiate the market for this type of packaging in broader terms.

Market Specification: The market for this type of packaging is the indoor market. That uses the product indoor i-e Offices and Home users. So the broader market for this category is Home and Offices.

Basis of Segmentation: The basis of segmentation used for this size of Nestle Pure life are also the combination of both demographics and psychographics factors. These variables are Family size (Organization Size in term of Offices), Income Level and Purity conscious People.

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o Family Size: Since our major market is Home and offices therefore for Home market the Family size is the important demographic variable to identify the target segment. Here we can divide family size into different categories.

o Small families (Parents + 2 children)

o Medium families (Parents + 3-5 Children)

o Large Families (Parents + More then 5 Children)

For offices our target market are the medium level and large level organization. According to the Government of Pakistan the medium organization is that which has the labor force of more then 100 people.

o Income Level: Income level as defined earlier is so important and it can divide into 5 different categories as defined above and our target segment is the segment with High and Middle high income for this size of Nestle Pure life. Here we have not added Middle income for our potential target as they were there for our bottled water because this packaging of water and use of this water at home is been discourages at the homes of people with middle income, they will buy this water when they are on road, in parks or during journey but they will not use it most of the time for their daily use.

o Purity Conscious People: The people who are psychologically very much health and fitness conscious and they care about the cleanliness and purity of every thing are among our target market because only they will buy this expensive water for their daily drinking usage.

POSITIONING

They position there product on the basis of product attribute that is pure they say that Nestle Pure life is a “Pure family water”. This is the positioning of the product that is pure so they are creating perception in the mind of customer that the product is pure and whoever wants to have purity in its drinking water should buy Nestle Pure life. Not only the positioning jingle but the Brand Name itself is positioning the product in the mind of customer.

The word “Family” in the jingle is actually positioning the nestle that it is not only for the one person of the family, but it is the whole family drinking water because purity is important for each and every person of the family.

ENVIRONMENTAL FACTORS AFFECTING THIS INDUSTRY

93% of Pakistan’s population consumes tap water. Awareness is being created that tap water is no longer safe. . The aqua layer in underground water is contaminated. Water

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for bottling is taken from the deepest layer where water quality is better and then it is processed.

MAJOR CUSTOMERS OF THIS INDUSTRY

Residential customers- Bulk water 19 liter

Corporate sector- Banks, institutions and companies

Retail Market- Disposable water 1.5 and 1 liter and 300 ml bottle.

Travelers1.5 liter bottles, 300 ml bottles

DISTRIBUTION NETWORK

The distribution network of mineral water industry then it is available nationwide with a strong network of distributors, all over Pakistan. Monitored and executed by a highly professional sales team. The common distribution network is as follows;

Company

Distributors

Retailer

Customers

In small cities water bottles are distributed through handling agents. The handling agents are responsible to distribute it in the particular area. They distribute the bottles to the sub-distributors. The sub-distributors then take it either to the retail shops or directly to the customer. But this strategy is only adopted by Nestle Pure Life(one of the players).

Nestle Pure Life

Handling Agents

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Sub Distributors

Retail Shops

Customers

MARKET ATTRACTIVENESS FACTORS

Satisfaction of need

CURRENT NEEDS OF THE TARGET MARKET: The need of the target market is to have pure and hygienic mineral water which provides good value for money which is handy and they can carry it to any place. The need of the children is to keep the bottle in their school bags and can easily carry, Can be used while travelling to college etc.There are good opportunities for nestle Pure life to expand. With increasing awareness about health people are expected to move towards bottled water. Nestle Pure Life is an established and trusted brand so the opportunity for them exists.

Macro trends- Quiet favorable

ECONOMIC: Spending patterns of people have changed. People have become more health conscious due to increasing awareness about safe and hygienic water. They prefer to spend more money to get pure and safe products. It is predicted that people in Pakistan would be ready to spend more on expensive water.

LEGAL & REGULATORY FORCES: The Pakistan Standard Quality Control Authority (PSQCA) was established under section 3 of the Act-1996. The establishment of any mineral water plant in Pakistan is required to get a license from the Pakistan Standards Quality Control Authority. . The PSQCA has developed standards for bottled and mineral water and all the water plants being established in the country are required to follow these standards. Nestle Pure Life doesn’t face any problems meeting these standards but they are expensive. Local companies don’t show their actual sales but Nestle does. It is very transparent and thus it faces problems.

TECHNOLOGICAL FORCES: The market leader in the bottled water industry i.e. Nestle Pure Life follows the RO process. Other companies in the industry either

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follow the reverse osmosis (RO) or distillation process. Some brands have local plants and some have imported plants setup. Technology requires expertise and experience. Nestle Pure Life has the best expertise and experience in this field and its difficult for any other competitor to copy it. It is difficult for companies to shift from one process to another. It requires huge investment

SOCIO CULTURAL: It is facing no ethical problems. Some people feel that selling water is unethical; however growing awareness has created change in thinking. 32% of diseases in Pakistan are because of drinking contaminated water so people are now shifting towards safe and hygienic water.

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COMPETITIVE POSITION FACTOR

They can differentiate on bases of providing high quality, and a premium product. They are the market leaders and can emphasize on this point.Being a multinational company their brand image is also very strong. Industry as a whole is also very attractive.This competitive advantage is sustainable because Nestle Pure Life is continuously carrying out campaigns to strengthen its brand name and build up trust of consumers. Our focus group revealed that Nestle Pure Life is top of mind recall and has a very strong brand name and that Nestle water is known because of Nestle Pure Life. Nestlé’s bottle design is patented and cannot be copied.

MILE AND SNOWS MODEL

PROSPECTOR

According to the Mile and Snow’s model Nestle Pure Life is a Prospector. They came as pioneers in water industry. They were the first one to start their new brand Nestle Pure Life. They have extensive distribution channels and are opportunity seekers. They are able to respond well to market changes and competitors through strong customer and market knowledge and hold 55% of market share.

Being a prospector they focus on growth by looking into new market opportunities and consumers segments.

DEFENDER

AquaFina and Kinley are currently defenders in the industry. They have low price however offer good quality and are considered safe for drinking purposes. They do not pay enough attention to new marketing opportunities or product development and therefore come under defender categories.

REACTOR

Sufi and Springley are the reactors, they do not have any well defined competitive strategy and lack a strong distribution channel and have low availability. They do not have an aggressive marketing approach towards product development as that of its competitors

ECONOMIC CYCLE OF THE INDUSTRY

Currently the industry is in growth stage, however the Changes in the economy will affect Nestle Pure Life, if the inflation rate goes up this can lead to an increase in the cost of production. Inflation in Pakistan has caused the cost of raw material to increase. The bottling process has become more expensive.

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We conducted research to analyze the potential for 0.5 ml water bottle. Reaserch objectives were:

• To understand consumers bottled water preferences• To analyze the effectiveness of promotion campaign of Nestle Pure Life

• To determine consumer awareness about the product

• To determine ways to increase sales of Nestle Pure Life 0.5 ml water bottle

EXPLORATORY RESEARCH

Exploratory research helped us identify ways for promoting 0.5 ml water bottle. Hence, we started off the research process by conducting our study with exploratory research. Under the exploratory research we conducted

1. Focus groups2. In-depth interviews and

RESULTS OF FOCUS GROUPS

One focus groups was conducted, the respondent profile was:

AG

EGENDER

EDUCATION LEVEL

OCCUPATIO

N

Respondent A Sana Gardezi

23 Female MBA Student

Respondent B Ahmad Khan

20 Male Bachelors Student

Respondent C Anum Wasim

19 Female Bachelors Student

Respondent D Bilal Ahmed

24 Male MBA Student

Respondent E Saad Farrukh

21 Male Bachelors Student

Respondent F Sadia Hussain

22 Female MBA Student

Respondent G Fatima hamid

20 Female Bachelors Student

Respondent H Ahsan Shahid

23 Male MBA Student

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KEY FINDINGS OF FOCUS GROUP

Purchase pattern

Our focus of project is 0.5ml water bottle of Nestle Pure Life, we found out that consumers prefer buying Nestle Pure Life if available, other wise they go for Aqua fina as their second choice. As it is more ‘on the go’ consumption, consumer wants it to be available.

Consumption pattern

0.5 ml water bottle is used by consumer, when they are travelling or hanging out with friends. They purchase it whenever they feel thirsty, as purchase decision is completely impulse. They like carrying the small bottle with them every where such as college office etc. on average at least each university going student consumes one bottle.

Availability

Nestle pure life is available almost at every small shop to every departmental store. So there weren’t any availability issues.

Most of the respondents use the products of Nestle often. Therefore it’s simply another of their product being added to the list. The fact that mineral water is sealed and has passed through the necessary purification processes is an incentive for them to purchase it. The most important attribute when they purchase Pure Life is that it adds value to their life.

SUMMARY OF FOCUS GROUP FINDINGS

The Focus group revealed some of the very useful and interesting findings which can help us in identifying the potential of Nestle Pure Life. The respondent’s top of mind brand has always been Nestle Pure Life. Those who are moving away from Nestle Pure Life are doing so because of its higher price, and cheaper packaging (inferior quality of the seal in recent times) also because as per the participants competitors’ are offering mineral water. Also some of the respondents proved to be more patriotic and did not like taking mineral water of any Multinational firm.

The focus group conducted with the students of Lahore School of Economics we found out that they prefer buying 500ml - 1 Liter bottles on daily basis for regular use to kill their thirst.

LIMITATIONS OF FINDINGS

The focus group discussion tends to get biased as many respondents try to emphasize their opinion. Some of the respondents take clue from ideas of others and agree to what others say, without thinking over it.

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IN-DEPTH INTERVIEWS

NAME: Awais AminDESIGNATION: Area Sales Manager, Nestle WaterDATE: 02-02-2009LOCATION: Nestle Lahore

RESULTS OF INTERVIEW CONDUCTED AT NESTLE

Market Potential for 0.5 ml: • good market potential for 0.5 ml

• “on the go consumption” is increasing

• awareness that has been recently increased among the people who are out of home for school, colleges, universities, offices or any other purposes

• Water demand increasing safe, reliable and easy to handle for drinking.


Nestle Pure Life enjoys strong consumer loyalty towards the brand and Consumer perception of being it a premium brand. Though consumer purchasing power has declined due to the financial crunch but it had no effect in nestle pure life sales.

Nestle Pure Life has maintained itself as the most trusted bottled water which helps in generating and increasing its sales volume. However, much emphasis is not given to the promotion of 0.5 ml water bottle, still there is a lot of potential, and lot of sales can be generated through it. We have used both the marketing techniques which includes above the line and below the line activities.

According to the Area Sales Manager, they always focus on consumer satisfaction and to get their feedback we ask consumer about various aspects which includes:

Consumer preferences Brand Loyalty

Consumer mindset is that nestle pure life brought Bottles water international standards to Pakistan market so they have 100% trust in this brand.

Future Prospects of Neste Pure Life are bright, Nestle Pure Life is one of the few products of nestle that was launched in Pakistan market and now succeeding world wide as well.

RETAILERS AND WHOLESALERS OPINION

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Retailors and whole sellers were also positive about Nestle Pure Life sales. Retailors said that consumers top of mind has always been Nestle, and if Nestle is not available they always complaint about it.

The prices are as follows:-

Product Name 0.5 Litre Price(Rs) 1.5 Litre Price(Rs) Profit(Rs)Nestle Pure Life 15 28 3-4Aquafina 13 25 -Kinley 15 25 -

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ANALYSIS OF CONSUMER SURVEY

RESPONDENT PROFILE

Gender Age Bracket

Income Education

Male / female

20 to 30 + 15000-36000 above

Bachelors and above

CONSUMER AND RETAILER FREQUENCY TABLES

GENDER

Frequency Percent Valid Percent Cumulative Percent

Valid MALE 44 73.3 73.3 73.3

FEMALE 16 26.7 26.7 100.0

Total 60 100.0 100.0

44 (73.33%) were males and 16 (26.67%) were females. This means that the majority of people who buy Nestle Pure Life are males.

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WHERE DO YOU PURCHASE NESTLE

Frequency PercentValid

PercentCumulative

Percent

Valid SMALL SHOPS 21 35.0 35.0 35.0

DEPARTMENTAL STORES

12 20.0 20.0 55.0

GENERAL STORE 10 16.7 16.7 71.7

HOME DELIVERY 17 28.3 28.3 100.0

Total 60 100.0 100.0

21 (35%) said that they bought at Nestle in small shops, 17 (28.3%) preferred home delivery, 12 (20%) bought Nestle in departmental stores. This means that a majority of people buy Nestle at small shops.

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WHERE DO YOU USE


PercentCumulative

Percent

Valid HOME 24 40.0 40.0 40.0

TRAVELING 2 3.3 3.3 43.3

COLLEGE 20 33.3 33.3 76.7

PICNICS 1 1.7 1.7 78.3

EATING OUT

2 3.3 3.3 81.7

OFFICE 11 18.3 18.3 100.0

Total 60 100.0 100.0

24 (40%) use Nestle water at home, 20 (33.3%) use Nestle in college, 11 (18.3%) use Nestle water at the office. This means that a majority of people use Nestle water at home.

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32

(53.3%) like the taste of Nestle water, 12 (20%) like the taste of Aquafina, 10 (16.7%) like the taste of Kinley. This means that a majority of people like Nestle Pure Life’s taste.

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EACH BRAND-APPROPRIATE ATTRIBUTE-TASTE


PercentCumulative

Percent

Valid NO RESPONSE 6 10.0 10.0 10.0

NESTLE PURELIFE

32 53.3 53.3 63.3

AQUAFINA 12 20.0 20.0 83.3

KINLEY 10 16.7 16.7 100.0

Total 60 100.0 100.0


EACH BRAND-APPROPRIATE ATTRIBUTE-PRICE


PercentCumulative

Percent


NESTLE PURELIFE

50 83.3 83.3 86.7

AQUAFINA 8 13.3 13.3 100.0

Total 60 100.0 100.0

50 (83.3%) prefer Nestle based on price while 8 (13.3%) think that Aquafina is better priced. This means that a majority of people prefer Nestle based on price and Nestle is a premium priced product.

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EACH BRAND-APPROPRIATE ATTRIBUTE-QUALITY


PercentCumulative

Percent


NESTLE PURELIFE

43 71.7 71.7 80.0

AQUAFINA 12 20.0 20.0 100.0

Total 60 100.0 100.0

43 (71.7%) prefer the quality of Nestle while 12 (20%) think that Aquafina has better quality. This means that a majority of people prefer Nestle based on quality.

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EACH BRAND-APPROPRIATE ATTRIBUTE-AFTER TASTE


PercentCumulative

Percent


NESTLE PURELIFE

45 75.0 75.0 86.7

AQUAFINA 8 13.3 13.3 100.0

Total 60 100.0 100.0

45 (75%) like the after taste of Nestle while 8 (13.3) like the after taste of Aquafina. This means that a majority of people like the after taste of Nestle.

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EACH BRAND-APPROPRIATE ATTRIBUTE-PURITY


PercentCumulative

Percent


NESTLE PURELIFE

48 80.0 80.0 86.7

AQUAFINA 8 13.3 13.3 100.0

Total 60 100.0 100.0

48 (80%) think that Nestle Pure Life is a pure drinking water while 8 (13.3%) think that Aquafina is a pure drinking water. This means that a majority of people think that Nestle Pure Life is more pure than Aquafina.

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MEDIUM USED MOST


PercentCumulative

Percent

Valid TV 46 76.7 76.7 76.7

MAGAZINE 11 18.3 18.3 95.0

NEWSPAPER 3 5.0 5.0 100.0

Total 60 100.0 100.0

46 (76.7%) watch TV the most, 11 (18.3%) read magazines and 3 (5%) read the newspaper. This means that the medium used most in TV followed by magazines and lastly newspapers.

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CHANNEL WATCHED MOST


PercentCumulative

Percent

Valid GEO 39 65.0 65.0 65.0

AAJ TV 2 3.3 3.3 68.3

ARY 11 18.3 18.3 86.7

ANY ENGLISH MOVIES CHANNEL

8 13.3 13.3 100.0

Total 60 100.0 100.0

39 (65%) watch GEO, 11 (18.3%) watch ARY, 8 (13.3%) watch any English movies channel and 2 (3.3%) watch AAJ TV. This means that a majority of people watches GEO.

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MAGAZINE PURCHASED MOST


PercentCumulative

Percent

Valid TIME 37 61.7 61.7 61.7

READERS DIGEST

12 20.0 20.0 81.7

ANY OTHER 11 18.3 18.3 100.0

Total 60 100.0 100.0

37 (61.7%) read the Time magazine, 12 (20%) read Readers Digest and 11 (18.3%) read any other magazine. This means that a majority of people reads the Time magazine.

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CHANNEL LISTENED TO MOST


PercentCumulative

Percent

Valid FM 89 45 75.0 75.0 75.0

FM 91 7 11.7 11.7 86.7

FM 100 6 10.0 10.0 96.7

FM 103.2 2 3.3 3.3 100.0

Total 60 100.0 100.0

45 (75%) listen to FM89, 7 (11.7%) listen to FM91, 6 (10%) listen to FM100 and 2 (3.3%) listen to FM103.2. This means that the channel listened to most is FM89 out of all the radio channels available.

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NEWSPAPER READ THE MOST


PercentCumulative

Percent

Valid THE NEWS 10 16.7 16.7 16.7

DAWN 15 25.0 25.0 41.7

DAILY TIMES 10 16.7 16.7 58.3

JANG 13 21.7 21.7 80.0

THE NATION 7 11.7 11.7 91.7

BUSINESS RECORDER

5 8.3 8.3 100.0

Total 60 100.0 100.0

15 (25%) read Dawn the most, followed by 13 (21.7%) who read Jang, 10 (16.7%) read The News, 10 (16.7%) read the Daily Times, 7 (11.7%) read The Nation and 5 (8.3%) read the Business Recorder. This means that the newspaper read the most is Dawn.

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SATISFIED WITH PURE LIFEQUALITY


PercentCumulative

Percent

Valid YES 45 75.0 75.0 75.0

NO 15 25.0 25.0 100.0

Total 60 100.0 100.0

45 (75%) are satisfied with the quality of Nestle and 15 (25%) are not satisfied with the quality. This means that a majority of people prefer to buy Nestle Pure Life on the basis of quality.

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IF YES-SATISFIED WITH PURE LIFE PRICE


PercentCumulative

Percent

Valid YES 53 88.3 88.3 88.3

NO 7 11.7 11.7 100.0

Total 60 100.0 100.0

53 (83.3%) are satisfied with the price of Nestle Pure Life and 7 (11.7%) are not satisfied with the price. This means that a majority of people buys Nestle Pure Life than any other brand.

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WHICH BRAND-NESTLE PURE LIFE NOT AVAILABLE

Frequency Percent Valid PercentCumulative

Percent

Valid AQUAFINA 45 75.0 75.0 75.0

KINLEY 15 25.0 25.0 100.0

Total 60 100.0 100.0

45 (75%) prefers Aquafina if Nestle is not available and 15 (25%) prefer Kinley. This means that a majority of people prefer to buy Aquafina if Nestle Pure Life is not available.

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RETAILER FREQUENCIES

WHICH BRANDS CARRIED


PercentCumulative

Percent

Valid PURE LIFE 16 47.1 47.1 47.1

AQUAFINA 3 8.8 8.8 55.9

SUFI 3 8.8 8.8 64.7

SPRINGLEY 2 5.9 5.9 70.6

KINLEY 8 23.5 23.5 94.1

PURE LIFE & KINLEY

1 2.9 2.9 97.1

PURE LIFE & AQUAFINA

1 2.9 2.9 100.0

Total 34 100.0 100.0

16 (47.1%) of retailers carry Nestle Pure Life, 8 (23.5%) carry Kinley, 3 (8.8%) carry Aquafina, 3 (8.8%) carry Sufi. This means that a majority of retailers carry Nestle Pure Life.

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MOST PURCHASED BRAND


PercentCumulative

Percent

Valid NESTLE PURE LIFE

30 88.2 88.2 88.2

AQUAFINA 3 8.8 8.8 97.1

SPRINGLEY 1 2.9 2.9 100.0

Total 34 100.0 100.0

30 (88.2%) purchase Nestle Pure Life, 3 (8.8%) purchase Aquafina and 1 (2.9%) purchase Springley. This means Nestle Pure Life is the most purchased brand.

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TRAIT PREFERRED MOST-TASTE


PercentCumulative

Percent


NESTLE PURE LIFE

20 58.8 58.8 67.6

AQUAFINA 3 8.8 8.8 76.5

SPRINGLEY 1 2.9 2.9 79.4

SUFI 7 20.6 20.6 100.0

Total 34 100.0 100.0

20 (58.8%) prefer the taste of Nestle Pure Life, 7 (20.6%) prefer the taste of Sufi, 3 (8.8%) prefer the taste of Aquafina and 1 (2.9%) prefer the taste of Springley. This means that a majority of people prefer the taste of Nestle Pure Life.

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TRAIT PREFERRED MOST-PRICE


PercentCumulative

Percent


NESTLE PURE LIFE

19 55.9 55.9 70.6

AQUAFINA 5 14.7 14.7 85.3

SPRINGLEY 3 8.8 8.8 94.1

SUFI 2 5.9 5.9 100.0

Total 34 100.0 100.0

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19 (55.9%) prefer Nestle Pure Life based on price, 5 (14.7%) prefer Aquafina, 3 (8.8%) prefer Springley and 2 (5.9%) prefer Sufi. This means that people prefer to buy Nestle Pure Life than any other brand of water available.

TRAIT PREFERRED MOST-QUALITY


PercentCumulative

Percent


NESTLE PURE LIFE

21 61.8 61.8 67.6

AQUAFINA 6 17.6 17.6 85.3

SPRINGLEY 5 14.7 14.7 100.0

Total 34 100.0 100.0

21 (61.8%) prefer Nestle based on quality, 6 (17.6%) prefer Aquafina and 5 (14.7%) prefer Springley. This means that a majority of people like the quality of Nestle Pure Life than any other brand.

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TRAIT PREFERRED MOST-AFTER TASTE


PercentCumulative

Percent


NESTLE PURE LIFE

21 61.8 61.8 79.4

AQUAFINA 4 11.8 11.8 91.2

SPRINGLEY 2 5.9 5.9 97.1

SUFI 1 2.9 2.9 100.0

Total 34 100.0 100.0

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21 (61.8%) like the after taste of Nestle Pure Life, 4 (11.8%) like Aquafina, 2 (5.9%) like Springley. This means that a majority like the after taste of Nestle Pure Life than any other brand.

TRAIT PREFERRED MOST-PURITY


PercentCumulative

Percent


NESTLE PURE LIFE

26 76.5 76.5 85.3

AQUAFINA 4 11.8 11.8 97.1

SPRINGLEY 1 2.9 2.9 100.0

Total 34 100.0 100.0

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26 (76.5%) prefer Nestle in terms of purity, 4 (11.8%) prefer Aquafina and 1 (2.9%) prefer Springley. This means that a majority of people think that Nestle Pure Life is more pure than any other brand.

MAJOR CUSTOMERS OF 0.5 LITRE NESTLE


PercentCumulative

Percent

Valid TEENAGERS

24 70.6 70.6 70.6

WOMEN 3 8.8 8.8 79.4

MEN 7 20.6 20.6 100.0

Total 34 100.0 100.0

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In the major customer category for 0.8 litre 24 (70.6%) are teenagers, 7 (20.6%) are men and 3 (8.8%) are females. This means that the major customers of Nestle Pure Life are teenagers.

MAJOR CUSTOMERS OF 1.5 LITRE NESTLE


PercentCumulative

Percent

Valid WOMEN 5 14.7 14.7 14.7

MEN 27 79.4 79.4 94.1

OTHERS 2 5.9 5.9 100.0

Total 34 100.0 100.0

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In the major customer category for 1.5 litre 27 (79.4%) are men and 5 (14.7%) are females. This means that the major customers of 1.5 Litre are males followed by females.

CONSUMER AND RETAILER CROSS TABS

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GENDER * DO YOU CONSUME NESTLE

DO YOU CONSUME NESTLE

TotalYES NO

GENDER MALE Count 34 10 44

77.3% 22.7% 100.0%

FEMALE

Count 12 4 16

75.0% 25.0% 100.0%

Total Count 46 14 60

76.7% 23.3% 100.0%

Out of a total of 44 males, 34 consumed Nestle and 10 did not. Out of 16 Females, 12 consume Nestle and 4 did not consume Nestle. This means that out of the total, 76.7% consume Nestle and 23.3% do not.

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GENDER * WHICH BRAND OF BOTTLED WATER USED

IF YES-WHICH BRAND USED

TotalNESTLE

PURE LIFEAQUAFIN

AANY OTHER AVAILABLE

GENDER MALE Count 34 9 1 44

% within GENDER

77.3% 20.5% 2.3% 100.0%

FEMALE

Count 12 4 0 16

% within GENDER

75.0% 25.0% .0% 100.0%

Total Count 46 13 1 60

% within GENDER

76.7% 21.7% 1.7% 100.0%

Out of 44 males, 34 used Nestle, 9 used Aquafina and 1 used any other available. Out of 16 females, 12 used Nestle and 4 used Aquafina. This means that out of the total 76.7% used Nestle, 21.7% used Aquafina and 1.7% used any other available.

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GENDER * HOW OFTEN NESTLE PURE LIFE BOUGHT

HOW OFTEN NESTLE PURE LIFE BOUGHT

TotalNO

RESPONSE DAILYONCE IN A

WEEKONCE IN A

MONTH

GENDER MALE Count 1 21 22 0 44

% within GENDER

2.3% 47.7% 50.0% .0% 100.0%

FEMALE

Count 1 8 5 2 16

% within GENDER

6.2% 50.0% 31.2% 12.5% 100.0%

Total Count 2 29 27 2 60

% within GENDER

3.3% 48.3% 45.0% 3.3% 100.0%

Out of 44 males, 21 bought Nestle daily, 22 bought once in a week. Out of 16 females, 8 bought Nestle daily, 5 bought once in a week and 2 bought once in a month. This means that out of the total 48% bought Nestle on a daily basis, 45% once in a week and 3.3% once in a month.

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GENDER * WHERE DO YOU USE

WHERE DO YOU USE

TotalHOME TRAVELING COLLEGE PICNICS EATING OUT OFFICE

GENDER MALE Count 19 1 14 0 0 10 44

% within GENDER

43.2% 2.3% 31.8% .0% .0% 22.7%100.0

%

FEMALE Count 5 1 6 1 2 1 16

% within GENDER

31.2% 6.2% 37.5% 6.2% 12.5% 6.2%100.0

%

Total Count 24 2 20 1 2 11 60

% within GENDER

40.0% 3.3% 33.3% 1.7% 3.3% 18.3%100.0

%

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Out of 44 males, 19 used Nestle at home, 14 used in college, 10 used at the office. Out of 16 females, 6 used at college, 5 at home, 2 while eating out and the rest either during traveling or picnics or office. This means that 40% use Nestle at home, 33.3% at college, 18.3% at the office and the rest during traveling or picnics or office.

AGE * DO YOU USE BOTTLED WATER

DO YOU USE BOTTLED WATER

TotalYES NO

AGE NO RESPONSE Count 1 0 1

% within AGE 100.0% .0% 100.0%

LESS THAN 20 Count 8 3 11

% within AGE 72.7% 27.3% 100.0%

21-35 Count 23 4 27

% within AGE 85.2% 14.8% 100.0%

26-30 Count 14 3 17

% within AGE 82.4% 17.6% 100.0%

31 AND ABOVE Count 3 1 4

% within AGE 75.0% 25.0% 100.0%


% within AGE 81.7% 18.3% 100.0%

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Out of people who were less than 20, 8 used bottled water and 3 did not, from age 21-35, 23 used bottled water and 4 did not, from 26-30, 14 used bottled water and 3 did no, from 31 and above, 3 used bottled water and 1 did not. This means that 81.7% of people of all ages use bottled water and 18.3% do not.

AGE * DO YOU CONSUME NESTLE

DO YOU CONSUME NESTLE

TotalYES NO

AGE NO RESPONSE Count 1 0 1

% within AGE 100.0% .0% 100.0%

LESS THAN 20 Count 7 4 11

% within AGE 63.6% 36.4% 100.0%

21-35 Count 20 7 27

% within AGE 74.1% 25.9% 100.0%

26-30 Count 14 3 17

% within AGE 82.4% 17.6% 100.0%

31 AND ABOVE Count 4 0 4

% within AGE 100.0% .0% 100.0%


% within AGE 76.7% 23.3% 100.0%

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Out of people who were less than 20, 7 used Nestle water and 4 did not, from age 21-35, 20 used Nestle water and 7 did not, from 26-30, 14 used Nestle water and 3 did no, from 31 and above, 4 used Nestle water. This means that 76.7% of people of all ages use Nestle water and 23.3% do not.

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AGE * PACKAGING BOUGHT MOST OFTEN

PACKAGING BOUGHT MOST OFTEN

Total0.5 LITRE 1.5 LITRE 19 LITRE

AGE NO RESPONSE Count 1 0 0 1

% within AGE

100.0% .0% .0% 100.0%

LESS THAN 20 Count 6 4 1 11

% within AGE

54.5% 36.4% 9.1% 100.0%

21-35 Count 14 3 10 27

% within AGE

51.9% 11.1% 37.0% 100.0%

26-30 Count 10 2 5 17

% within AGE

58.8% 11.8% 29.4% 100.0%

31 AND ABOVE

Count 0 1 3 4

% within AGE

.0% 25.0% 75.0% 100.0%


% within AGE

51.7% 16.7% 31.7% 100.0%

Out of people who were less than 20, 6 bought 0.5 litre, 4 bought 1.5 litre and 1 bought 19 Litre. From age 21-35, 14 bought 0.5 litre, 3 bought 1.5 litre and 10 bought 19 Litre. From 26-30, 10 bought 0.5 litre, 2 bought 1.5 litre and 5 bought 19 Litre. From 31 and above, 0 bought 0.5 litre, 1 bought 1.5 litre and 3 bought 19 Litre. This means that 51.7% bought 0.5 litre, 31.7% bought 19 Litre and 16.7 bought 1.5 Litre.

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GENDER * IF YES-WHICH BRAND USED


TotalNESTLE

PURE LIFEAQUAFIN

AANY OTHER AVAILABLE

GENDER MALE Count 34 9 1 44

% within GENDER

77.3% 20.5% 2.3% 100.0%

FEMALE

Count 12 4 0 16

% within GENDER

75.0% 25.0% .0% 100.0%


% within GENDER

76.7% 21.7% 1.7% 100.0%

Out of 44 males, 34 used Nestle, 9 used Aquafina and 1 used any other available. Out of 16 females 12 used Nestle and 4 used Aquafina. This means that out of the total 76.7% use Nestle, 21.3% use Aquafina and 1 any other available.

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AGE * IF YES-WHICH BRAND USED


Total

NESTLE PURE LIFE AQUAFINA

ANY OTHER

AVAILABLE

AGE NO RESPONSE

Count 1 0 0 1

% within AGE

100.0% .0% .0% 100.0%

LESS THAN 20

Count 7 4 0 11

% within AGE

63.6% 36.4% .0% 100.0%

21-35 Count 20 6 1 27

% within AGE

74.1% 22.2% 3.7% 100.0%

26-30 Count 14 3 0 17

% within AGE

82.4% 17.6% .0% 100.0%

31 AND ABOVE

Count 4 0 0 4

% within AGE

100.0% .0% .0% 100.0%


% within AGE

76.7% 21.7% 1.7% 100.0%

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Out of people who were less than 20, 7 used Nestle and 4 used Aquafina. From age 21-35, 20 used Nestle, 6 used Aquafina and 1 used any available. From 26-30, 14 used Nestle, 3 used Aquafina and 0 used any available. From 31 and above, 4 used Nestle, 0 used Aquafina and 0 used any available. This means that 76.7% used Nestle, 21.7% used Aquafina and 1.7% used any other available.

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CATEGORY OF BUSINESS * MOST PURCHASED BRAND

MOST PURCHASED BRAND

TotalNESTLE

PURE LIFEAQUAFINA

SPRINGLEY

CATEGORY OF BUSINESS

BAKERY Count 7 3 0 10

70.0% 30.0% .0%100.0

%

BOOKSHOP Count 2 0 0 2

100.0% .0% .0%100.0

%

MEDICAL STORE

Count 4 0 0 4

100.0% .0% .0%100.0

%

GROCERY Count 11 0 1 12

91.7% .0% 8.3%100.0

%

DEPARTMENTAL STORE

Count 6 0 0 6

100.0% .0% .0%100.0

%


88.2% 8.8% 2.9%100.0

%

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Out of 10 who bought Nestle at a bakery, 7 bought Nestle and 3 bought Aquafina. All of the 2 people who bought at a book store bought Nestle. Out of the 12 people who bought Nestle at a grocery store, 11 bought Nestle and 1 bought Springley. All of the 4 people who bought at a medical store bought Nestle. All of the 6 people who bought at a departmental store bought Nestle. This means that out of total 88.2% bought Nestle, 8.8% bought Aquafina and 2.9% bought Springley.

POSITIONING MAP

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VALUE CURVE

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SUGGESTION FOR INCREASING SALES OF NESTLE PURE LIFE 0.5 ML

Increase promotion

Increase availability

Sponsor Major events

Increase awareness among school going children and supply Nestle Pure Life to schools

Provide their 12 or 19 litre bottles to famous gyms such as Shapes, defence club etc.

Start promotion to create awareness about drinking water instead of contaminated drinking water

Provide door to door service on monthly basis for convenience of existing and potential customers.

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COMPETITIVE SWOT ANALYSIS

COMPETITORS STRENGTH

Distribution muscles are very strong due to their existing distribution for carbonated soft drinks.

( Source: Mansoor Ahmad, ABM, Aqua fina)

COMPETITORS WEAKNESSES

Low brand equity, market share, image of CSD which is not a sign of healthy image, lack of brand building or set them on the top of mind of their potential customers.


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REACTION PATTERN OF COMPETITORS

Nestle is very proactive in term of their competitors while Aqua fina and Kinley are very reactive in terms of promotions and pricing. For example Nestle has increased its 1.5 liter bottle price to Rs.28 from Rs.25 while other two companies have also done the same. As soon as nestle pure life launched their international campaign, Pepsi reacted in the same way by launching their campaign.

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MARKETING PLAN

0.5ml bottle of Nestle Pure Life

Reasons to Select 0.5 ml Bottle

We have selected the 0.5 ml size of Nestle Pure Life, to re-launch it because

o This SKU is being ignored. o Product image is not clear in the mind of customers.

o According to our study, there is no problem in the product development, the problems of failure are with the positioning, distribution and advertisement part (which is absent for this bottle).

Market Potential for 0.5 ml:

There is a good market potential for 0.5 ml because the “on the go consumption” is increasing. It is due to the awareness that has been recently increased among the people who are out of home for school, colleges, universities, offices or any other purposes and demanded water that is safe, reliable and easy to handle for drinking.

o Keeping in mind the market potential, we will focus on promotional campaigns to increase sales of 0.5ml.

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http://www.brandsoftheworld.com/brands/0008/8920/Nestle_Pure_Life.eps

http://images.google.com.pk/imgres?imgurl=http://www.emcrise.com.br/reportagem/imagem/nestpurelife.jpg&imgrefurl=http://www.emcrise.com.br/reportagem/reportnestle.htm&h=306&w=255&sz=36&hl=en&start=38&tbnid=Fd8i5T_Cg9aIDM:&tbnh=117&tbnw=98&prev=/images%3Fq%3Dpure%2Blife%2Bby%2Bnestle%26start%3D20%26ndsp%3D20%26svnum%3D10%26hl%3Den%26lr%3D%26sa%3DN


Response from competitors if we change our marketing mix:

Price:

Price points are determined by Nestle Pure Life. If Nestle people change prices, its competitors will also change their price accordingly. Now there are companies like Pepsi, Coca Cola and their brand names are very strong. But Nestle should also consider the fact that, if Pure Life will increase its price then customers will switch to other brands because now they have choice of other quality brands. Keeping this in mind we are not going to bring any change in the price.

Product:

Currently competitors are offering product in sizes of 0.5 ml. such as Aqua Fina and Kinley. Now in the market there are very strong brands so they give quick response to every action of Nestle.

Promotional features:

Nestle allocates a huge amount of their money on promotions.

o Take part in events, occasions and trade to expose and advertise their product.o Town storming activities

o Shop level competition (competition for the best decorated shop)

o Town shops competition

o Event Sponsorships

o Provided computers to schools

o Water tube wells in villages/rural areas.

These activities are effective. They are not commercial; they are conducted as a responsibility

Before the entry of Aqua fina and Springley there was no other company who was doing effective advertisement and promotions as Pure Life is doing. But now Aqua Fina and Springley are doing very effective advertisement. Pepsi is allocating budget for advertisement and promotions of Aqua fina. Recently they have sponsored Marathon race in Pakistan. They also give quantitative discounts (2+1, 4+1etc.) Currently they are not focusing on advertisements because they are not in situation of doing heavy production. Currently advertisements are only through billboards.

Distribution Channel:

Four Distribution channels are used:

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o Retail outlets (shops, grocery/super stores)o Food outlets (restaurants, canteens, hotels)

Distribution channel of Nestle Pure Life is very strong they have nation wide distribution but Cola and Pepsi have distribution synergy with their carbonated drinks their distribution channel is also strong. So in future Nestle needs to focus on its distribution channel and they should try to cover those areas where cola companies have their networks.

Aqua fina has very strong distribution. They have direct distribution system. The product is supplied directly from warehouse to retail outlets without any whole sellers. Aqua fina in two years covered all major cities of Pakistan.

Qarshi will be one of the major competitors of Nestle in future because of its brand name which is associated with NATURAL PRODUCTS and its nation wide distribution. Coca cola also has very strong distribution channel and brand name which will be a threat for Nestle in future.

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Target Market for 0.5 ml bottle

Demographic Characteristics

o Sex: Male & Femaleo Age: 8-16yrs old children and 16-30yrs old females.

o Income: A+, A, B (A+ & A = 40,000+, B= 25,000+)

o Education: School going children, college & university going females, mothers of young children.

Psychographic Characteristics

o Health conscious peopleo Active people

Product Usage Characteristics

0.5 ml bottle is a single serve packaging and is used for out of home consumption. Usage occasions of 0.5 ml bottle are as follows:

o Schoolso Colleges

o Office

o Traveling

o Picnics

Benefits

The benefits of using the 0.5 ml bottle are as follows:

o Affordable price.o Handy.

o Females can keep it in their hand bags while children can keep it in their school bags.

o For on-the-go consumption.

o Healthy and Hygienic.

o Purity.

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o Minerals.

o Disposable bottle.

Needs Analysis

Current needs of the target market

The need of the target market is to have pure and hygienic mineral water at an affordable price which is handy and they can carry it to any place. The need of the children is to keep the bottle in their school bags and can easily carry it to their schools while need of the females is to keep the bottle in their hand bags and carry it to college, university, office and can use it during the traveling.

How well is the current product offering meeting these needs?

Nestle Pure life is widely meeting the needs of its target market. The product is designed in such a way that it is handy and children & females can easily carry it to any place. While the price of the product is also affordable.

How are the needs of the target market expected to change in the near future? What about changes in distant future?

People are becoming more health conscious and awareness about pure and hygienic water is increasing rapidly. Over the last few years, bottled water consumption has increased as compared to other beverages. Nestlé has a good share of the throat.

o It is forecasted that in near future people in Pakistan would be ready to spend more money on expensive water bottles. People’s purchasing power is increasing and so the consumption is also increasing.

Current Marketing Objectives & Performance

The objectives are as follows:o Improve brand equity.o Increase Sales by 20%

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Consistency of objectives with the recent changes in the marketing environment and the needs of target market

Brand Equity

As awareness among consumers is increased for safe and hygienic bottled water, Nestlé’s brand name is strengthening for high quality processed water.

It is a short term objective. As awareness among consumers is increased for safe and hygienic bottled water, Nestlé’s brand name is strengthening for high quality processed water. Nestle pure life do brand tracking every month which includes top of the mind recall, band recall, last campaign recall and surveys for insisters and rejecters. 80% of their customers according to their research are insisters. Brand loyalty and awareness is the specific and measurable outcome which results in more sales and profitability. The following strengths and weaknesses can be a factor for improving brand equity.

o Highly accepted brand name (strength)o Growing awareness towards pure and hygienic bottled water (opportunities).

But when the company will face profitability pressure it will be unable to allocate many resources for the brand equity development. The company spends much already on R&D and currently on setting up a new factory.

Changes in the environment

The percentage of fake brands and look alike brands is increasing which directly influences Nestlé’s brand name. Thus Nestle has to take protective measures to further strengthen its brand name and differentiate from others.

Secondly some people are also selling tap water in the empty original bottles of nestle, by making fake flayers of the Pure Life, so this can also hurt the company and brand image.

Performance AnalysisCurrent performance in terms of sales, market share and profitability

o Sales: 100 million literso Profitability: Less than previous years

o Market Share: Currently the market share is round about 55%.It is declined because Aqua Fina and Springley have captured many customers.

Current performance compared to other firms in the industry

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Nestle being the market leader has the highest sales and market share in the industry. Nestle spends more on creating awareness for safe and hygienic bottled water and there are at least 80% of people who are insisters (i.e. they insist to have only nestle pure life if it’s not available.) (source: Area Sales Manager, Nestle Pure Life)Nestlé’s objectives are consistent with the changes in the marketing environment and target market.

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Marketing Strategies

We are going to opt for product specialization strategy as we are targeting two segments to be served by this single product.

Target Markets

Target Market # 1: for 0.5 ml Bottle

Demographic: 8-16 years old school going children.

Income Level: For A and B class (25,000-40,000)

Geographic: Most of the cities and rural areas as well

Psychographics:

o Health conscious peopleo Active people

Product Usage Characteristics:

0.5 ml bottle is mostly to be used by children while going to school. The consumers here are children but the buyers are their mothers.

Justification for Selection of this Target Market:

It is small in size and handy so children can easily keep it in their bags.The Government of Pakistan estimated with regard to diarrhea that water-related disease accounts for 14 percent of illnesses for children under five and for seven percent of all disease in people age five and older. The Pakistan Council of Research and Water Resources (PCRWR) assesses that 40 percent of all reported illnesses are water-related. It is estimated that 200,000 children in Pakistan die every year due to diarrhea diseases alone. Unsafe water affects mainly rural and urban poor, who suffer above the average from sickness and water related diseases.

Competitors that also serve this Target Market:

oAqua Fina 0.5ml bottle.oVey “Chotu” 0.5ml bottle

Marketing Mix for Target Market # 1

Product Strategies

Nestle Pure Life water, in a small, and handy bottle is for out of home consumption.

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Pricing Strategies

Price of 0.5 ml bottle is Rs.17. As for this product we want to increase the number of units sold or increase the number of customers served, in order to decrease long-term costs as predicted by the experience curve. So if the company gets a cost advantage over its competitors it can justifiably increase the market share and gain the competitive advantage by adopting penetration pricing strategy and the investment in advertisement and production capacity.

Distribution Strategies

They should go for penetration into the market through strengthening their distribution channels. Two channels are to be more focused for distribution:

o Retail outlets (shops, grocery/super stores)o Food outlets ( school canteens)

Promotion Strategies

Promotional Strategy must have the objectives, including: sales increases, creation of brand equity, positioning, competitive or creation of a corporate image. For Nestle Pure Life, mostly promotions are at point of purchase e.g.

o All BTL activitieso Corporate SMS

We had to think of an intelligent cost effective way to advertise our product because of our limited budget. We just cannot go for typical heavy T.V commercials and stuff because of limited advertising budget again. Thus we searched for a better means to advertise which would be less expensive and more effective. We thus searched and decided that will go for corporate SMS which is a service offered by this telecom company Mobilink. There are no subscription charges for this service. All one has to do is to write down a corporate mail to the concerned department of the telecom company and the people in the concerned department get back as soon as possible. By availing this service we can sent a million SMS to different people in a go. The charges would be just 50 paisas per SMS. Mobile usage as we all know is increasing day by day and this means of advertising 0.5 ml bottle of Pure Life would be effective, fast and relatively very inexpensive.

Marketing mix giving a competitive advantage in the target market

Nestle Pure Life is the pioneer in launching this size i.e. first mover advantage and the Nestle Pure Life name gives it the main competitive advantage.

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Sustainability of competitive advantage

This competitive advantage is sustainable because Nestle Pure Life is continuously carrying out campaigns to strengthen its brand name and build up trust of consumers. Recent surveys like top of mind recall and insister for Nestle have shown that Nestle has a very strong brand name and that Nestle is known because of Nestle Pure Life. Nestlé’s bottle design is patented and cannot be copied.

Target Market # 2: for 0.5 ml Bottle

Demographic: 16- 30 years age females who are either students or working ladies, and the mothers of young children

Income level: A and B (25,000 - 40,000 +)

Geographic: Available in all major cities of Pakistan.

Psychographic: Hygiene and health conscious females who are active and have awareness towards safe water.

Product Usage CharacteristicsUsed in colleges, universities, offices and while traveling by females.

Competitor that also Serve this Target MarketThe following competitors are expected to serve this target market.

oAqua Fina 0.5ml bottle.oKinley 0.5ml bottle

Justification for this Target Market

Easy to carry and attractive small bottle used by females who are health conscious and have awareness and interest towards safe drinking water.

4.1.1. Marketing Mix for Target Market # 2

Product StrategiesNestle Pure Life in a small handy bottle is for out of home consumption.

Pricing StrategiesPrice of 0.5m bottle is affordable, The objective of pricing strategy is to maximize quantity i-e penetration pricing strategy. As for this product company wants to increase the number of units sold or increase the number of customers served, in order to decrease long-term costs as predicted by the experience curve. So if the company gets a cost advantage over its competitors it can justifiably increase the market share

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and gain the competitive advantage by adopting penetration pricing strategy and the investment in advertisement and production capacity.

Distribution StrategiesThey should go for penetration into the market through strengthening their distribution channels. Two channels are to be more focused for distribution:

o Retail outlets (shops, grocery/super stores)o Food outlets ( school canteens)

Promotion StrategiesPromotional Strategy must have the objectives including: sales increases, product acceptance (0.5 ml Bottle), creation of brand equity, positioning, competitive or creation of a corporate image. For Nestle Pure Life, mostly promotions are at point of purchase e.g.

o All BTL activitieso Corporate SMS

Already explained above in Target Market # 1

Marketing mix giving a competitive advantage in the target market

Nestle Pure Life is the pioneer in launching this size i.e. first mover advantage and the Nestle Pure Life name give it the main competitive advantage.

Sustainability of Competitive Advantage

This competitive advantage is sustainable because Nestle Pure Life is continuously carrying out campaigns to strengthen its brand name and build up trust of consumers. Recent surveys like top of mind recall and insister for Nestle have shown that Nestle has a very strong brand name and that Nestle is known because of Nestle Pure Life. Nestlé’s bottle design is patented and cannot be copied.

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SALES FORECASTING & PLANNING

Total Population of Pakistan= 165 million (approx).

Distribution (%age) of Nestle water in all four provinces of Pakistan:

Punjab: 46%. Sindh: 35%. NWFP: 12%. Baluchistan: 7%.

Nestle Pakistan is currently producing or refining around 228 million liters of water annually and it is expected that it will reach around 300 million next year if they will properly utilized their plant in Karachi.

SKU’s of Pure Life and percentage of revenues generated from each:

0.5 liter= 5% 1.5 liter= 6% 5 liter= 30% 12 liter= 16% 19 liter= 43%

Total Population of Punjab= 85 million (approx).

The total usage of Nestle pure life in Punjab (volume) = 46% * 228 million liters

= 104.88 million liters

Currently total sales in volume of 0.5 ml bottle in Punjab = Total consumption of pure life in Punjab* %age of revenues generated from 0.5 lit

= 104.88 million lit * 5%

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= 5.244 million lit.

Total sales in Punjab for 0.5 ml = Volume * Price

= 5.244 mill lit * 15

=Rs. 78.66 million

Total Population of Lahore= 10 million (approx).

There are more than 6 million people of Lahore that depends on around 400 tube wells for drinking water and some other small uses.

Sales in Lahore of 0.5 lit of pure life =Share of 0.5 lit of Lahore * Sales of Punjab for .5 lit 20%

= 20% * Rs.78.66 mill.

= Rs.15.732 mill.

Now our target for the next year is to increase our sales for 0.5 lit by 20% for year 2009-2010.

So forecasted sales for year 2009-2010 for 0.5 lit = Rs. 15.732 mill (1+20%)

= Rs.18.8789 mill.

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TOTAL SALES IN LAHORE PER MONTH

Sales are varied according to different seasons and we have forecasted our figures according to that.

Months % age of

sales Sales in Rs

Peak Season

1 April 7% 13214882 May 10% 18878403 June 15% 28317604 July 15% 2831760

Mid or Average Season

5 August 13% 24541926 September 10% 18878407 October 6% 11327048 November 5% 943920

Low Season

9 December 5% 94392010 January 4% 75513611 February 4% 75513612 March 6% 1132704

Total 100% 18878400

The budget for advertising and other promotion is also increased by 20% as of sales.

Now the new forecasted budget = 1,700,000 (1+20%)

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= 2040000

APPENDIX

CONSUMER QUESTIONNAIRE

We are students of Lahore School of Economics and are conducting a survey on Nestle Pure Life. The results of the survey will be entirely used for academic purposes. Your corporation will be appreciated.

1) Do you use bottled water?

Yes

No

If yes then proceed, otherwise please stop.

Indicate our degree of liking for each of the brands of bottled water:

Like a lot like neutral dislike dislike alot

5 4 3 2 1

Nestle Pure Life

Kinley

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Springley

Sufi

Aqua fina

2) Which brand of bottled water you use? o Nestle Pure Lifeo Aqua finao Springlyo Sufio Any other that is available __________________________ Please specify

If you use Nestle Pure Life than proceed, if not please stop here

3) Which packaging do you buy most often? ½ litre

1.5 litre

4) How often do you buy Nestle Pure Life ½ litre?

Daily

Once in a week

Once in a month

Others ___________________________ (Please specify)5) Are you satisfied with the packaging of ½ litre Nestle Pure Life? Yes No

If no

6) What do you think can be improved about packing of ½ litre Nestle Pure Life? Color Shape Material Design Size Others ____________________________ please specify

7) Where do you use ½ litre Nestle pure Life?

Home

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Traveling

College

Picnics

Eating out

Office

Any other ______________________ please specify

8) Where do you purchase ½ litre Nestle pure Life from?

Small shops

Departmental store

General store

Others____

9) Are you satisfied with the availability of ½ litre Nestle pure Life?

Yes No

If not,

10) Where do you wish it to be available?

__________________________________ please mention

11) Which Brand would you prefer if ½ litre packaging of Nestle Pure Life is not available?

Nestle Pure Life

Aqua fina

Springly

Sufi

Any other ____________________________ please specify

12) How important is each factor in influencing your bottle water purchase decision:

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Most not least

important important neutral important important

5 4 3 2 1

Packaging

Purity

Price

Availability

Aroma

13) Rank the importance of each attribute of Nestle Pure Life in your opinion:

Most not least

important important neutral important important

5 4 3 2 1

Packaging

Purity

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Price

Availability

Aroma

For each of the brands, select most appropriate attribute it possesses (you can select more than one):

Nestle Pure Life

AquaFina Springley Others

______Taste PriceQualityAfter TastePurity

14) Have you seen the latest advertisement of Nestle Pure Life? If Yes, Which one?

15) Which medium do you use the most?

TV if you selected TV go to Q 16.

Magazine if you selected TV go to Q 17.

Radio if you selected TV go to Q 18.

Newspaper if you selected TV go to Q 19.

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16). Which channel do you watch the most?

PTV GEO AAJ TV TV ONE ATV ARY HUM TV Any English movies channel ___________________

please specify Any Indian movies channel ____________________

please specify Others ____________ Please specify

17). Which magazine do you purchase the most?

She Libas Me and my wedding Time Readers digest Voyage Any other _______________________________ please

specify

18). Which channel do you listen to the most?

FM 100 FM 101 FM 102 FM 103 Any other ________________________________ please

specify

19). Which newspaper do you read the most?

THE NEWS DAWN DAILY TIMES


20) Are you satisfied with the quality of ½ litreNestle Pure Life?

Yes No

If no;

22) Are you satisfied with the price of ½ litre Nestle Pure Life? Yes No

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21)How do you think quality can be improved? Please comment___________________________________________________________________________________________________________________________________________________________________________________________________

22)Which brand has better quality than Nestle Pure Life? Sufi Kinley


If no,

25) What improvements would you like to suggest for ½ litre Nestle Pure Life

______________________________________________________________________________________________________________________________________________________________________________________________________

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23) What in your view point should be done to the price?

Increased by a few paisas Increased by 1 Rupee Increased by 2-3 Rupees Increased by a greater amount Decreased by a few paisas Decreased by 1 Rupee Decreased by 2-3 Rupees Decreased by a greater amount

24) Which brand do you think has more appropriate pricing than Nestle Pure Life?

Sufi Kinley

PERSONAL INFORMATION

Gender:

Male Female

Age:

Less than 20 21-25 26-30 31 and above

Residential Area

Defence Gulberg Model Town Others__________ (please specify)

Family Income

Less than 15000 26000-35000 36,000 and above


RETAILOR QUESTIONNAIRE

We are students of Lahore School of Economics and are conducting a survey on Nestle Pure Life. The results of the survey will be entirely used for academic purpose. Your corporation will be appreciated.

Name: ___________________

Location of store: ___________________

What category of business are you in?

Bakery Bookshop Medical Store Grocery Departmental Store

Since how long have you been in retail business?

o Less than 2 yearso 3 -5 yearso 6-8 yearso More than 9 years

How many brands of mineral water/bottled water do you carry?

Pure Life Aquafina Sufi Springley Kinley Any other __________________________ please specify

Which is the most purchased brand of Bottled water?

o Nestle Pure Lifeo Aqua finao Springlyo Sufio Any other ____________ (please specify)

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For each of the attributes please select the trait preferred most by the customers.

NESTLE PURE LIFE

AQUA FINA

SPRINGLEY SUFI ANY OTHER

(PLEASE SPECIFY)

TASTE PRICEQUALITYAFTER TASTEPURITYOTHERS (PLEASE SPECIFY)

Who are the major customers of 0.5 litre Nestle pure Life?

o Teenagerso Womeno Meno Others ___________ (please specify)

Who are the major customers of 1.5 litre Nestle pure Life?

o Teenagerso Womeno Meno Others ___________ (please specify)

What is the consumer feed back you get regarding Nestle Pure Life?

Excellent Good Normal Poor

Do you get regular supply of Nestle Pure Life?

o Yes o No

How often do you get Nestle Pure Life supply?

o Dailyo Weekly

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o Others _________ (please specify)

Do you get the profit margin on sales of Nestle Pure Life as?

o Per pack (200 ml or 1000 ml)o Per carton

Do you have separate shelf space allocated specially for Nestle Pure Life?

o Yes o No

Do you face the problem of running out of stocks of Nestle pure life?

o Yes o No

Are you meeting the demand of your customers?

o Yeso No

Are you willing to carry more stock of Nestle Pure life?

o Yes o No

If yes, How much?

o 10% moreo 20% moreo Others _________ (please specify)

Which other brand is preferred by customers over Nestle Pure Life?

Aquafina Sufi Springley Kinley None Any other __________________________ please specify

Why do you think this brand is preferred?

Better quality than Nestle Pure Life

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Better price than Nestle Pure Life Better taste than Nestle Pure Life Better bottling than Nestle Pure Life More variety in SKUs than Nestle Pure Life

Whom are you most comfortable dealing with?

Nestle Aquafina Sufi Springley Kinley Any other __________________________ please specify

What is the reason behind being comfortable while dealing with your selected brand?

Easy terms and conditions Timely payments Timely delivery of stocks Most demanded brand by people Most profit generating brand

What improvements would you like to suggest for Nestle Pure Life

____________________________________________________________________________________________________________________________________________________________

What is your over all opinion about Nestle Pure Life?

o Very Goodo Goodo Averageo Bado Very Bad

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REFERENCES

1. Source: Nisar Ahmad, Commercial Group Manager, Water division2. Source: Mansoor Ahmad, ABM, Aqua fina

3. www.nestle.pk

4. http://www.nation.com.pk/daily/mar-2003/31/business/bn4.asp

5. http://www.pcrwr.gov.pk/wq04_annexure4.htm

6. Status of Various Brands of Mineral Water Marketed in Pakistan

7. www.pcrwr.gov.pk/Btl_wr_report/Bottled%20water%201999-2005.pdf –

8. http://www.nestle.com/Our_Brands/Bottled_Water/Overview/Bottled+Water.htm

9. www.qarshiindustries.com/products/springley

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http://www.qarshiindustries.com/products/springley

http://www.nestle.com/Our_Brands/Bottled_Water/Overview/Bottled+Water.htm

http://www.nestle.com/Our_Brands/Bottled_Water/Overview/Bottled+Water.htm

http://www.pcrwr.gov.pk/Btl_wr_report/Bottled%20water%201999-2005.pdf

http://www.pcrwr.gov.pk/wq04_annexure4.htm

http://www.nation.com.pk/daily/mar-2003/31/business/bn4.asp

http://www.nestle.pk/

ACKNOWLEDGEMENTS

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Transcript of ACKNOWLEDGEMENTS