Nestle Pakistan Limited

Topics: Marketing, Pricing, Suggested retail price Pages: 6 (2233 words) Published: April 15, 2012
Nestlé Pakistan Limited
Nestlé Pakistan Ltd. is a food processing company, which is registered on Karachi and Lahore stock exchanges. It established its first production unit in 1988 in Sheikhupura, Pakistan with the name of Nestlé Milkpak Limited but its name has been changed and now it is called Nestlé Pakistan Limited. Headquartered in Lahore, the Company operates five production facilities. Two of its factories in Sheihupura and Kabirwala are multi product factories, while another one at Karachi is already for production. One factory in Islamabad and two in Karachi produce bottled water. Through its effective marketing and a vast sales and distribution network throughout the country, it ensures that its products are made available to consumers whenever, wherever and however. Nestle Pakistan is a subsidiary of Nestle S.A.- a company of Swiss origin headquartered in Vevey, Switzerland. Marketing Mix Of Pakistan

Nestlé Pakistan Limited is selected to study that how they have planned their marketing strategy for Nestlé Pure Life (water). Nestlé is a multinational food company and offering Fast Moving Consumer Goods (FMCG). The motto of Nestlé is “Good Food, Good Life”, so delivering the qualitative products to the customer is their main objective. It is offering 75 brands of bottled waters worldwide. Nestlé Pure Life (NPL) is one of them that was first offered in Pakistan by Nestlé Pakistan Limited in 1998. People felt need of Pure, safe and clean water because of impurities in water especially in the industrialized cities like Karachi, Lahore, Faisalabad etc. Nestlé identified this opportunity and lunched NPL that satisfied the customer needs and Nestlé become market leader in the water industry. The customers of NPL showed interest on NPL because of trust on Quality of Nestlé, at the heart of which there are qualitative products and its long term commitment to deliver better products to consumers. Being the market leader, the market share of NPL is 78% that is much higher than its competitors. NPL is passing through its Growth stage (of Product Life Cycle) i.e. its sales are increasing tremendously and competitors are entering in the market like Aqua Fina by Pepsi and Askari Waters. There are different SKU’s of NPL to cover a wide market needs like for Home and office delivery there are 3gallon and 5 gallon bottles (bulk usage) and for day to day usage easily carrying light weight like “1.5, 0.5, 0.2 liters” bottles are available in the market. Still Nestlé is working on bringing the changes and innovation in this field. For this it has close relationship with its suppliers and distributors to get their suggestion to improve the quality of NPL. Nestlé Pakistan also has the Customer Service Department with the logo "Talk to Nestlé" in Lahore to receive the complaints and suggestions from the customers. In this way Nestlé analyze its market and becomes aware of the new market trends. Marketing strategy include 4 P’s strategy i.e. Product, Price, Place and Promotion strategies. Product is something that is offered to the market. NPL product strategy studies show that they are positioning the product with respect to its attributes that NPL is safe, pure, refreshing and healthy water. Nestlé also does product line expansion; recently it has offered a 0.25 liter bottle of NPL in the market. It’s also using the company name with its product name i.e. Nestlé Pure Life. NPL round shape and elegance of the bottle are instantly recognizable. Quality is cornerstone of NPL success. Nestle people say: “Quality is our more successful product and it is key to our success today and tomorrow.” In Price strategy, Nestle has adopted the strategy of non-price competition. It is offering one price for NPL to all cities of Pakistan. It also keeps the check on distributors to maintain single price of NPL. It offers trade discounts to its distributors. Placement is the distribution of the product to its customers at right time, in right...
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