Principles of Marketing
Term Report Part 3
NIDO has adopted a “pull” strategy for its promotion. A “pull” selling strategy is one that requires high spending on advertising and consumer promotion to build up consumer demand for a product. Since, in Pakistan, most of the mothers depend upon fresh milk or packaged milk, therefore NIDO identified the need and created the demand for an instant milk powder that has all the nutrition that a growing child needs. At present, NIDO is effectively using the following marketing mix: I. PRODUCT:
As mentioned in the previous parts of our report, NIDO has divided its consumers into three segments on the basis of age. In accordance to that, NIDO’s available in three varieties catering three different segments of their market. These include: * NIDO 1+ : For ages 1-3 years.
* NIDO 3+ : For ages 3-5 years.
* NIDO Fortified : For ages 5+ years.
Packaging: NIDO comes in different packaging styles; it is available in soft packages as well as in tin cans. Logo: The logo they use is simple and crisp with a yellow background which is in-tune with their emphasis on health and nutrition. The heart in their logo evokes the emotional appeal in mothers for their children.
| 2500 gm
| 1100 gm
| 400 gm
| 200 gm
| Rs. 830
| Rs. 199
| Rs. 88
| Rs. 56
NIDO usually offers high prices as it targets school going children in cities. However it also caters to the middle class by keeping different packs with different prices so the middle class sector can buy smaller packs as they cost less. Also by being available in different sizes and packages; it claims to cater to the convenience of its customers. The price distribution with respect to different packages can be visible by the table presented below:
In case of NIDO, the company is using indirect distribution channels as illustrated below:
To make sure that this is done effectively and efficiently, the company has appointed sales officers to monitor the performance of the agents. Every sales-officer visits an average of 50 stores in a day within a territory assigned by the company. On the basis of these visits, the sales officers prepare daily sales reports and at the end of each month submit it to the Head office in Lahore. Also NIDO has its regional sales offices in Karachi, Multan, Lahore, Islamabad and Peshawar.
Nestle uses all three types of distribution methods, which are Intensive distribution, Selective distribution and Exclusive distribution, to market NIDO. In the big cities the emphasis is on intensive, in sub-urban areas there is selective and in rural areas there is exclusive distribution.
NIDO is very active in terms of marketing and comes up with different campaigns from time to time. It makes efficient use of different kinds of media, such as billboards, commercials and radio advertisements, for its promotional activity.
Billboards: The current campaign of NIDO fortified milk is based on “10 signs of good nutrition”. The billboards they used for this campaign were really innovative. Each billboard projected one of the 10 signs. For good appetite, the billboard had been cut in a shape that had a bitten corner. Another hoarding put up on a pedestrian bridge over two roads showed “muscle development”.
Television Advertisements: Nestle airs various advertisements of NIDO in which it shows growing children and their concerned mothers thus it uses emotions as an effective promotional strategy.
Promotion budget: Nestle MilkPak spends 20% of its budget to promote NIDO.
Integrated Marketing Communication
Nido uses a complete “Integrated Marketing Communications” (IMC) plan and has effectively organized the various marketing and communication activities under one leadership. In addition to marketing material that the company generates to inform the public about...
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