Final Marketing Plan Presentation

8/8/2019 Final Marketing Plan Presentation

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Group MembersGroup MembersAmmarah Haseeb (12670)Narjis Batool (12621)Tahir Habib (12831)

PresentsPresents

Abdul Majid (Zeeshan Ahmed (12576)Mirza Ahmar Abbas (12932)


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W elcome to Nestl

Marketing Plan


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Introducing Nestl


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W orld Leading Swiss FMCG Company.

Founded by Henri Nestle in 1867.

Excellence in product safety, quality and

value

Vide range of products e.g. dairy products,

beverages, water, infant dietetic and

confectionary.

449 Factories, 83 countries, present inalmost all the continents.

Introduced in Pakistan in 1988, by getting

share in Milkpak limited.

Nestl at a Glance


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Nestl Factories in Pakistan


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Henri Nestl endowed his company with the symbol derived fromhis name.

Nest with a mother bird protecting her young, became theCompany's logo and a symbol of the Company's care and attitudeto life-long nutrition.

The Nestl nest represents the nourishment, security and sense of family that are so essential to life.

The first product made by Henri Nestl, a food for babies whowere unable to breastfeed.

Nestl Year to Year


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Nestle Pakistan subscribes fully to this global vision. In addition to that, NestlePakistan also envisions to:

Lead a dynamic motivated and professional workforce that is proud of its heritage and bullishabout the future.

Meet the nutritional needs of all age groups through a diversified product range that contains aninnovative portfolio branded food and beverages of the highest quality.

Maintain long-term growth and deliver shareholder value.

Establishing responsible communication with the consumer which in turn can provide us abetter look into what changes need to be made to our products.

Strengthen the position as the best career destination for talented and motivated individuals.

Empowering a system of self-management.

Nestls global vision is to be the leading health, wellness, andNutrition Company of the world.

Nestls VISION


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"Nestl is the largest food company in the world. But, more important to them is to be the world's

leading food company.

Nestls MISSION STATEMENT

" These four words capture the essence and meaning: of what we do, and of what we offer to consumers everywhere.

They express a philosophy of what we believe in.They also articulate a vision of where we are going. "


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Nestl in Figures

W orldwide Sales: CHF 108,055 mio

EB IT: CHF 15,699 mio

Net Profit: CHF 10,428 mio

Factories: 449

Employees: Around 280,000

Organic Growth: 19.9 %


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The World's Leading Food Company

The USD >10 billion Food Companies in FY 2004

0

10'000

20'000

30'000

40'000

50'000

60'000

70'000

N estl Kraft Foods PepsiCo Unilever Coca-Cola Mars Danone ConAgra CadburySchweppes

GeneralMills

Sara Lee

F o o d S a e s

n

o U S D

On y Food nc . petfood & Beverages exc . a coho


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Adaptation

W e have a global food strategy

which is adapted locally to suit

local cuisine based on consumer insight

China Totole Granulated Chicken Bouillon

Nigeria Maggi Chicken Cube

Poland W iniary Rosot Krolewski


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To manufacture and market the Company's products in such a way as

to create value that can be sustained over the long term for

shareholders, employees, consumers, and business partners.

Nestl recognizes that its consumers have a sincere and legitimate

interest in the behavior, beliefs, and actions of the Company behind

brands in which they place their trust and that without its consumers

the Company would not exist.

Nestl continues to maintain its commitment to follow and respect all

applicable local laws in each of its markets.

Nestl Marketing Goals &Objectives


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Name of chairmanName of chairmanCorporate Communicationss

Key Ingredients


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Our People

People - our source of energy

Around 280,000 people make

up the Nestl family

Continuous training

and improvement of

professional skills

Respect and cultural diversity


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Nestl R&D

An interactive Network covering four Continents

8 Research and evelopmentCenters: Amiens (FR), Marysville,

Solon ( S), Shanghai (CN),Singapore(SG), Sderot ( IL), Tours (FR),Casa Buitoni ( I)

8 Product Technology Centers(PTCs): Konolfingen, Orbe (CH),Beauvais, Lisieux,Nestl W aters (FR), St Louis ( S),

York (GB), Singen ( )

Nestl Research Center (NRC),Lausanne (CH)


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The Nestl Management andLeadership Principles

People and product rather

than systems oriented

Committed to long-termshareholder value

As decentralized as possible

Continuous improvement


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Nestl Organisation Chart


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Hierarchy details of Hierarchy details of NestlPakistan


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Inside Nestl


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Nestls Global Presence

Americas 33.8%

Europe 30.3%

AOA 17.2%

Water 9.7%

Other 9.0%

Percentage of total sales


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Sales by Product Group

6.5%Pharmaceuticals

11.9%

ChocolateConfectioneryBiscuits

18.3%

Cooking AidsPrepared ishes

Milk ProductsNutritionIce Cream

25.5%

Beverages

26.2%

PetCare

11.6%


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Nestl's Four Strategic Pillarsand Organic Growth


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GOO FOO GOO FOO , GOO L IFE

Sustenance Enjoyment Health/ Nutrition Psychological Contentment

Good Food Health & W ellness W ellbeing

Feeling GoodTaking Control

EquilibriumBody & Mind

PerceivedNutritional

value+

Taste/PleasureVariety/BalanceSafety/Quality

For all

+

Evolution of need states in food


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Corporate W ellness nitCreation of Corporate Wellness Unit todrive the Nutrition Health and Wellnessorientation across the Company

Nestl NutritionStrengthen our leadership position in thecore nutrition business

People

Products 60/40+

Brands

&

Comm.

Science

Nestl: evolving into nutrition,health & wellness company


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Name of chairmanCorporate CommunicationsCorporate Communications

Committed to responsible

use of gene technology

For transparent consumer

information

Respecting consumer

preferences

Nestl Position

Biotechnology


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During the first months, the mothers milk will

always be the most natural nutriment, and every

mother able to do so, should herself suckle her children.

Henri Nestl, 1869

One Hundred Years Before the W HO CodeHenri Nestl supported breast feeding


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Nestl World of Products

Corporate Communications


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Nestl Brands & Products features

Quality and nutritional value are the

essential ingredients in all Nestl brands.

Factors behind Nestle Brands successare multifarious, quality, improved

technology, innovation which have

created brand loyalty amongst its

customers.


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Baby Foods

Breakfast Cereals

Beverages

Bottled W ater

Chocolate & Confectioneryairy Products

Ice Cream

Food services

Prepared FoodsPet care

Pharmaceuticals

Cosmetics

Nestl Product Lines


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BABY FOO S

LactogenNestogen

Cerelac

NeslacCalcium Plus

Nestle NAN etc..

History Recalls:

Nestl established in 1867 in Switzerland &its first product was Lactogen formula for

infants by the name Farine Lacte


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BREAKFAST CEREALS

ChocapicShreddies

Cheerios

Cookie CrispLucky Charms,

Cinnamon Toast etc..

History Recalls:

Nestl became Cereal Partners Worldwide in 1990.


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Beverages

Soluble Coffee:

Nescaf, Nespresso, Coffee mate

Chocolate Milk BeveragesNesquik, Nescau

Ready-to-drink

Nestea, Juicy juice, Nestle Fruit JuicesBeverage Partners W orldwide

Joint venture with Coca-Cola


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Bottled Water

Nestl Pure Life

S.Pellegrino

Perrier

Contrex

Vittel

Arrowhead

Poland Spring

eer Park,

Ice Mountain etc ..

History Recalls:

Nestl shared Hands with Vittel in 1969 with equity

interest.


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Chocolates & Confectionery

Countlines:K itK at, Lion, Smarties,

Butterfinger, Galak/milky Bar

Tablets:

Nestle Crunch, Nestl C lassic,

Aero, Polo

Presentation Boxes:

After Eight, Quality Street,

Baci

Biscuits:So Luiz, La Rosa, Mc K ay

History Recalls:

Nestl exercised Merger with Peter, Cailler, Kohler

Chocolates Suisses S.A. in 1929.


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Dairy Products

Nido

Milk Pack

Every Day

Nesvita MilkNespray

Carnation

MiloNestle Yogurt

History Recalls:

Nestl exercised Merger with Anglo-Swiss

Condensed Milk Company in 1905


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Ice Cream

Mvenpick

reyer's/Edy's

rumstick/Extrme

Maxibon/Tandem

Mega

Sin Parar/Sem

Parar/Non Stop

Antica Gelateria del CorsoHistory Recalls:

Nestl exercised Acquisition of Mvenpick,Powwow and Dreyer's in 2003&Valio in 2004 (for Ice cream activities)


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Nestl Food Services

Food Services and

professional products

Chef

Hotels and restaurants

Vending machines

Fast food chains

History Recalls:

Nestl exercised Acquisition of Schller and Chef America in 2002.


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Frozen:Stouffers, Buitoni, cold meat products, dough,

pasta, pizzas, sauces, snacks etc.

Soups, Bouillons, Sauces:

Maggi

Italian Cuisine:Buitoni, Lean cuisine, Hot Pockets

Prepared Dishes and Cooking Aids

History Recalls:

Nestl exercised:

1. Merger with Alimentana S.A. (Maggi) in 1947.

2. Acquisition of Buitoni-Perugina in 1988.


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PetCare

Cats:

Pro Plan, Purina ONE,

Fancy Feast, Friskies,

Cat Chow, Felix

Dogs:

Pro Plan, Purina ONE,

Dog Chow, Mighty Dog,

Alpo, Winalot

History Recalls:Nestl exercised acquisition of :

1. San Pellegrino and Spillers Pet foodsin 1998

2. Ralston Purina in 2001.


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Pharmaceutical Products

Alcon Laboratories:

Ophthalmic drugs,

lens-care solutions &

optical surgical instruments

Galderma:

Pharmaceutical and cosmetic

joint ventures with Galderma

History Recalls:

Nestl exercised:

1. Acquisition of Alcon in 1977.

2.Joint ventures with Galderma in 1981.


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Cosmetic

LOral

The world leader in

cosmetics

Innov - Joint venture with

L'Oral on Equity interest

basis in 1974


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Nestls Products Lines in Pakistan

NESTLE PROFESS IONAL

W ATERS

CH ILLE D D AIRY

FOO D

INFANT FORM LA

N TR ITION

BEVERAGES

AMB IENT D AIRY


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Nestl Products Mix in Pakistan


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Nestl Products Pricing Stretegies

All the prices are totally based on quality, services and

organization makes sure that prices should be affordable by all

the customers.

Customers trust and happiness is prime objective.Nestle always strive to give superior product at affordable rates.

Nestle product pricing is comparatively high against its

competitors but it delivers maximum quality and value to their

customers.


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COST BASED PRICING STRETEGY

Nestle use the simple formula for the price that is Cost +Profit.

Nestle responds to commodity price increases, it also

responds to fluctuations in the other direction and may lower

prices again accordingly.

The effect of commodity prices varies from country to country

and from product to product, so finished product prices are

not decided centrally but by market.Nestle expect their Raw material cost pressures to abate

somewhat in the course of the year, and foresee price

increases to trend lower in the second half of the year."


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WITHDRAWING S K Us

Where it makes no sense to increase finished product prices

to cover its own costs, the company has simply withdrawn

stock-keeping-units (S K Us) from sale.

These steps taken in those countries where Raw material was

not produced locally and must be imported.


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PRODUCT RE-FORMULATION TO MAINTAIN PRICES

Nestle has worked to reformulate some of its products,

replacing some commodities with other, cheaper ones.

The choice of alternative raw materials must ensure same

quality and nutritional considerations and not just price.

If reformulation not possible to maintain the same standards,

the company will either keep the product AS IT IS and

increase the price, or drop the SK

U.Where a product has been reformulated, it will be changed

back when the commodity cost has dropped only if there are

clear advantages to doing that.


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Supply Chain & D istribution Channels


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Marketing Channels

Market D istribution andMarket D istribution andChannels Strategy:Channels Strategy:

Nestl Pakistan's supply chain and distribution makes sure that

Nestl products are:

accessible, no matter where consumers are in Pakistan.

Nestle aims to put together processes from the farm to

markets.

Make sure products are distributed to the consumers at the

correct time, the right cost and in the accurate quantities.


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HOD Svc. Network

Islamabad

LahoreFaisalabad

North

SouthK arachi

Hyderabad

Sargodha

Abottabad

Muzafarabad

Jehlum

Wah

Sialkot

OkaraK asur

Peshawar

Sahiwal

Gujrat

Jhang

Gujranwala

Multan

Marketing Channels


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Marketing Channels

To accomplish their tasks, the company choosesboth marketing channel methods

1.Conventional:In conventional channel, Nestle Products are distributedamong the wholesalers of Pakistan and from wholesalers;

the products are distributed to retailers and from retailers, theproducts reaches to ultimate consumers.

Nestle Wholesalers Retailers Ultimate Consumers


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Marketing Channels

2. Vertical:In Nestle, Products are also delivered directly to the consumersthrow vertical distribution channel. In this channel, the cost canbe minimized.

Nestle Products

Wholesalers

Retailers

Ultimate

Consumers


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Promotion


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Nestl Products PromotionNestl Products Promotion

Nestle knows the specific segment of themarket, its business is attempting toserve.

It determines the sales of its productsagainst those of its competitors with thehelp of research.

Nestle adapt both ATL and BTLstrategies for promoting their brands.


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Nestl Products Promotion

Company is making effective effort inadvertising its product through Television,News papers and Billboards

ADVERTISING:


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ADVERTISING:


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ADVERTISING:


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PERSONAL SELLING:The company hires the large number of employees whose job is to promote theproduct in area where it can have possible

number of buyers.


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SALES PROMOTION:Free samples are supplied to targetconsumers to gain their approval of satisfaction.

Consumers educational programs andentertainment events are held to increasethe awareness and encouraging the use of products


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SALES PROMOTION:


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TAXES AN D LEGAL OBL IGAT IONS

Tax, finance and accounting department is responsible

for all tax reports and payments.

Company has its own multiple distribution channels which

enables company to supply any critical items.

Before any purchases, comparison market statement ismade and according to the prices in that statement

purchases are made.


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S W OT ANALYS IS

STRENGHTS:

Value added productsBrand nameSix brands having 70% group salesR&D departmentUnique features and technologies40 & 60% test result criteria


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S W OT ANALYS IS

W eakness:Less consumer research in few areas.

Opportunity:

Market expansion by using bio-technology.

Threats:

Baby milk actionNew and indirect competitorsProduct acceptance

Final Marketing Plan Presentation

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