Nestle Business Objectives PDF

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CONTENTS CONTENTS......................................................................................................................1 EXECUTIVE SUMMARY....................................................................................................3 HISTORY.........................................................................................................................4 MISSION STATEMENT.....................................................................................................5 NESTLE BUSINESS OBJECTIVES......................................................................................6 NESTLE PRODUCTS........................................................................................................6 CUSTOMER ORIENTATION............................................................................................10 MARKETING ENVIRONMENT..........................................................................................10 ..................................................................................................................................10 NESTLÉ’S MICROENVIRONMENT................................................................................10 NESTLÉ’S MACRO ENVIRONMENT..............................................................................11 MARKETING OFFERING.................................................................................................12 EFFECT OF EXTERNAL ENVIRONMENT ON NESTLE DELICIOUS JAM..............................12 MARKETING RESEARCH AND MARKETING INFORMATION.............................................12 MARKETING STRATEGY.................................................................................................16 MARKET SEGMENTATION..............................................................................................16 GEOGRAPHICAL SEGMENTATION..............................................................................16 DEMOGRAPHICAL SEGMENTATION............................................................................16 TARGET MARGET..........................................................................................................16 VALUE PROPOSITION....................................................................................................16 CONSUMER BEHAVIOUR............................................................................................17 CUSTOMER RELATIONSHIP MANAGEMENT...................................................................17 STRATEGY FOR CAPTURING VALUES............................................................................17 PRICE........................................................................................................................20 PRICING OBJECTIVES.................................................................................................21 FACTORS AFFECTING THE PRICE OF NESTLE JAMS....................................................21 PLACE........................................................................................................................21 RETAILING....................................................................................................................21 RETAILERS CLASSIFIED BY MARKETING STRATEGIES................................................21 CHANNEL OF DISTRIBUTION.........................................................................................22 PROMOTION..............................................................................................................22 STRATEGIC PLANNING..................................................................................................23 SWOT ANALYSIS OF NESTLE JAM..................................................................................25 STRENGTHS..............................................................................................................25 1

WEAKNESS.......................................................................................25 OPPORTUNTIES................................................................................25 THREATS...................................................................................................................26 RETURN ON INVESTMENT (ROI)....................................................................................26 MARKET IMPLEMENTATION...........................................................................................26 During the manufacturing of the product we would go for its advertising. We would distribute broachers to create awareness. Then we would hire some sign board in different major cities of Pakistan. And at the same time we would go for TV and radio commercials. In all this process our main focus would be on TV commercials and sign boards because now a day these are the most popular things among the consumers. .....................................................................................................................................26 CONCLUSION................................................................................................................26 REFERENCES................................................................................................................27

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EXECUTIVE SUMMARY Our marketing project is about launching a new product which is Nestle Delicious Jam, bring happiness in life. Nestle is not producing jam currently. So we will introduce this product 1st time in market. The marketing plan for this purpose consists of many strategies that we will use. We will compete the market because our product will offer a unique combination of features e.g. different flavors, bottle design, nutrients etc at a value added price. Its target market will include all people but specially the children. It will be available in all possible flavors and reasonable price will be offer for Nestle Delicious Jam. The product life cycle will start from the maturity stage by providing more values in beginning. We will use corporate vertical marketing system for Nestle Delicious Jam.

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HISTORY 1866-1905 In the 1860s Henri Nestlé, a pharmacist developed a food for babies who were unable to breastfeed. His first success was a premature infant who could not tolerate his mother's milk or any of the usual substitutes. People quickly recognized the value of the new product, after Nestlé's new formula saved the child's life, and soon, Farine Lactée Henri Nestlé was being sold in much of Europe.

1905-1918 In 1905 Nestlé merged with the Anglo-Swiss Condensed Milk Company. By the early 1900s, the company was operating factories in the United States, Britain, Germany and Spain. World War I created new demand for dairy products in the form of government contracts. By the end of the war, Nestlé's production had more than doubled.

1918-1938 After the war Government contracts dried up and consumers switched back to fresh milk. However, Nestlé's management responded quickly, streamlining operations and reducing debt. The 1920s saw Nestlé's first expansion into new products, with chocolate the Company's second most important activity.

1938-1944 Nestlé felt the effects of World War II immediately. Profits dropped from $20 million in 1938 to $6 million in 1939. Factories were established in developing countries, particularly Latin America. Ironically, the war helped with the introduction of the Company's newest product, Nescafé, which was a staple drink of the US military. Nestlé's production and sales rose in the wartime economy.

1944-1975 The end of World War II was the beginning of a dynamic phase for Nestlé. Growth accelerated and companies were acquired. In 1947 came the merger with Maggi seasonings and soups. Crosse & Blackwell followed in 1960, as did Findus (1963), Libby's (1971) and Stouffer's (1973). Diversification came with a shareholding in L'Oréal in 1974.

1975-1981

Nestlé's growth in the developing world partially offset a slowdown in the Company's traditional markets. Nestlé made its second venture outside the food industry by acquiring Alcon Laboratories Inc.

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1981-1995 Nestlé divested a number of businesses1980 / 1984. In 1984, Nestlé's improved bottom line allowed the Company to launch a new round of acquisitions, the most important being American food giant Carnation.

1996-2002

The first half of the 1990s proved to be favorable for Nestlé: trade barriers crumbled and world markets developed into more or less integrated trading areas. Since 1996, there have been acquisitions including San Pellegrino (1997), Spillers Petfoods (1998) and Ralston Purina (2002). There were two major acquisitions in North America, both in 2002: in July, Nestlé merged its U.S. ice cream business into Dreyer's, and in August, a USD 2.6bn acquisition was announced of Chef America, Inc.

2003 + The year 2003 started well with the acquisition of Mövenpick Ice Cream, enhancing Nestlé's position as one of the world market leaders in this product category. In 2006, Jenny Craig and Uncle Toby's were added to the Nestlé portfolio and 2007 saw Novartis Medical Nutrition, Gerber and Henniez join the Company

MISSION STATEMENT “Nestle is dedicated to providing the best foods to people throughout their day, throughout their lives, throughout the world. With our unique experience of anticipating consumers' needs and creating solutions, Nestle contributes to your wellbeing and enhances your quality of life.” Nestle is not only Switzerland's largest industrial company, but it is also the World's Largest Food Company. The mission statement emphasizes on the fact that Nestle products are available in nearly every country around the world. Wherever one may live, only Nestle can provide the best and most reliable food and beverage products to meet his/her needs throughout the day, throughout the life. Especially, people on the move want to be able to find good food wherever they are, whatever the time of day. They are often reassured that they will find well-known brands out of home. This statement also reflects the image of high quality products that Nestle offers. Nestle has the advantage that it offers caterers, fast food chains and other restaurants a complete range of high quality ingredients, base products and meal components, as well as leading consumer brands such as Nescafe. Quality is the cornerstone of the success of the Nestle Company. Everyday, millions of people all over the world show their trust in the

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company by choosing Nestle products. This trust comes from a quality image that has been built up for over a century. Therefore, the quality of the products ultimately enhances the quality of the consumer’s life. In addition, the mission statement declares that Nestle has the ability to anticipate “…consumer’s needs and create solutions….” Nestle has proven this ability a number of times by introducing new products that were required by consumers.

NESTLE BUSINESS OBJECTIVES  Nestlé's business objective is 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.  Nestlé does not favor short-term profit at the expense of successful longterm business development.  Nestlé 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. So the needs & wants of consumers should be considered.  Nestlé believes that, as a general rule, legislation is the most effective safeguard of responsible conduct, although in certain areas, additional guidance to staff in the form of voluntary business principles is beneficial in order to ensure that the highest standards are met throughout the organization.  Nestlé is conscious of the fact that the success of a corporation is a reflection of the professionalism, conduct and the responsible attitude of its management and employees. Therefore recruitment of the right people and ongoing training and development are crucial.  Nestlé continues to maintain its commitment to follow and respect all applicable local laws in each of its markets.

NESTLE PRODUCTS Nestle is a well-known company all over the world and Pakistan. The company basically deals in food products as their logo says “Good Food, Good Life.” Their major products lines are:

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MILK PRODUCTS 1) NESTLE MILKPAK UHT MILK This product was launched in 1981. Backed by a very strong brand name, aggressive marketing and distribution plan, consistent quality, and availability throughout the year, it has become quality milk. In September 1999, Milk Pak UHT milk was launched as Nestle Milk Pak UHT milk. It is available in 1000, 500 and 250 ml sizes.

2) MILKPAK BUTTER This product was launched in 1985 under the Milk Pak brand name. It has been recently repackaged in a crisp white laminate, the design of which bears closed resemblance to that of Milkpak UHT milk. This new package design allows gaining strength from Nestle Milkpak UHT milk. It is available in 200 and 100 gm sizes.

3) MILKPAK UHT CREAM This product was launched in 1986 under Milkpak brand name. It is available in 200 ml size.

4) MILKPAK DESI GHEE This product was launched in 1986. It is available in 1000 ml size and is leading branded desi ghee in the country.

5) NESTLE EVERYDAY To meet the requirements of the tea-whitening segment, this product was launched in 1992. On account of aggressive marketing, focused distribution, excellent consumer acceptance and product quality, this brand has shown strong growth and holds good promise for the future.

6) NESTLE NIDO Soon after it was introduced in the early 70`s as an imported product, Nido full cream milk powder became the market leader. Local manufacturing of Nido began in 1990, which has reinforced its position as the dominant player in the full cream milk powder category.

CHOCOLATE DRINKS 1) MILOPOWDER This product was launched in 1994. It is available in 14,100 and 200 gm sizes. It is strongly associated with a healthy life style and is an ideal drink for growing children who need strength and energy.

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2) MILO RTD To cater for consumer convenience, Milo RTD (ready to drink) was launched in 1995 and is now available in an attractive 180 ml slim pack. It is popular among all age groups especially among the growing segment of nutrition conscious consumers. It is an excellent substitute for cold drinks.

COFFEE

1) NESCAFE CLASSIC It is one of the world’s most popular coffee brands. Nescafe global campaign “open up” was launched in Pakistan in October, introducing a new brand framework and increased emphasis behind coffee sales in Pakistan. Nestle Milkpak locally packs imported coffee and markets it in 225 and 500gm.

FRUIT DRINKS 1) FROST It is a well-known brand launched in 1986 and has the largest market share. Positioned as a cold drink and an alternate to cola drinks, its strength lies in the convenience attached to its usage.

2) NESTLE ORANGE JUICE The product was launched in July 1996. It is available in 180ml and1litre sizes. In a market that is becoming increasingly conscious about nutrition and is displaying preference for healthy drinks, Nestle Orange Juice has made very good inroads and has a strong potential in the future.

DIETETIC & INFANT PRODUCTS 1) LACTOGEN Lactogen 1 and Lactogen 2 are infant and follow-up formulae launched in 1991 and are available in two sizes both pack and can. The brands provide both affordability and quality.

2) CEREALS Launched in 1989, it is the dominant player in the growing infant food market. It is available in 5 flavors and provides balanced nutrition to infants.

3) NESTLE RICE An affordable starter weaning cereal and offers the flexibility of preparation with a variety of meals. This was launched in 1994 and available in125ml pack size.

4) NESTLE WHEAT 8

Nestle wheat is a wheat-based infant cereal without milk. It is available in 125 and 200 gm pack sizes.

5) NESLAC Neslac is a growing up milk, formulated specially for 1 to 4 years old. This was launched in 1994. It contains a right balance of proteins, calcium, iron, vitamins and essential minerals in order to cater nutritional needs of growing children.

CULINARY PRODUCTS 1) MAGGI 2-MINUTE NOODLES

Fast to cook, good to eat – Maggi 2-Minutes Noodles were launched with local production in 1992, and doing so Nestle pioneered the category of instant noodles in Pakistan. It offers flavors like chicken masala, chili and chatkhara.

2) MAGGI COLD SAUCES Nestle entered the Cold Sauces category early in the year with the launch of Maggi ketchup, Maggi mirch maza and Maggi khatti meethi – the first Emily sauces in Pakistan. The innovative taste of Khatti meethi together with the more traditional tastes of Ketchup and Mirch maza, were received well by the consumers.

CONFECTIONERY In view of the impressive potential for confectionery sales in the country, Nestle Milkpak established an independent sales and distribution network for confectionery products. From three main cities in 1996, it has grown into a nation-wide network. The initial product range includes locally produced Polo Mint, Kitkat, Smarties, Lion Bar, and Fox’s, Allen’s Toffo and Allen’s Soothers. Both Toffo and Soothers are produced on a new confectionery line-based on a new state-of-the-art technology that provides an extremely flexible process for production of wide range of high and low boiled candies. This will enable the company to introduce varieties of new sweet flavors over the next few years.

WATER

The launch of Nestle Pure Life in December 1998 was a truly historic event. This marks the Nestle Pure Life’s entry into the country’s fast growing water market. At the same time Pakistan became the first country where Nestle launched the new brand. Nestle Pure Life is a premium drinking 9

water, produced to the highest standards of safety and purity. It is ideally balanced with essential minerals. It is available in two convenient sizes of 0.5 and 1.0 liters. Capitalizing on its strong brand recognition, aggressive pricing and supported by a strong marketing campaign, Nestle Pure Life has made very strong inroads into the water market in Pakistan. Nestlé PURE LIFE is available around the globe today in Canada, USA, Mexico, Brazil, Argentina, South Africa, Saudi Arabia, Jordan, Egypt, Lebanon, Turkey, Russia, Uzbekistan, Pakistan, China, Thailand, and the Philippines. Launched on the North American market in 2003, Nestlé PURE LIFE is destined to become the world’s leading and most widely distributed brand by 2010.

CUSTOMER ORIENTATION Nestlé is the customer oriented company from its foundation to till now. In 1866 it introduced the food for babies who were unable to breastfeed, and this formula saved the lives of many children. Due to the customer’s realization over the company, Nestlé's production and sales rose in the wartime economy. The quality of the products ultimately enhances the quality of the consumer’s life. In addition, Nestlé has the ability to anticipate “…consumer’s needs and create solutions….” Nestlé has proven this ability a number of times by introducing new products that were required by consumers. Nestlé is one of the few companies to have an information system that commits the company to respond to information requested.

MARKETING ENVIRONMENT

NESTLÉ’S MICROENVIRONMENT 1)

SUPPLIERS 10

 Nestlé is a corporate member of the National Minority Supplier Development Council.  It has established the relationship with many suppliers. They don’t have any specific suppliers. Moreover it includes different and a large number of suppliers for obtaining raw materials.

CUSTOMERS Consumer markets are i...