BRAND AUDIT STRATEGY BRAND MANAGEMENT Brand Audit 1 Nestle juices TABLE OF CONTENTS No. Particulars Page 1 Executive summary 3 2 History and Introduction 4 3 Mission and vision 10 4 Value chain Analysis 12 5 Pest analysis 19 6 Market analysis 22 7 Competitor analysis 24 8 Swot analysis of nestle juice 27 9 Porter five model 30 10 Analysis of buying behavior 33 11 Hierarchy of goals 35 12 Marketing segmentation 35 13 Positioning 36 14 Product strategy 37 15 Communication strategy 38 16 Budget 40 17 Distribution strategy 41 18 Price strategy 42 19 Sale forecast 47 Brand Audit 2 Nestle juices
Executive summary Nestle foods was established in 1866. Since then it has continued to provide quality products to its customers with products and packaging innovations. Nestle juices is Pakistan¶s number one and fastest growing food company. The company is trying their level best to differentiate themselves from other local companies and trying to win the competition in juice industry by adopting the modern trends and technologies in both operational fields as well as in marketing of their products. In this detailed project we covered all most all the topics related to the marketing plan.
First of all we presented the companies¶ history and introduction which included the year of formation and certain steps the resulted in the today¶s form of Nestle. We describes value chain analysis PEST analysis about nestle juices and our brand competitor . And the next step we do experiment about SWOT analysis who its effect on our brand . so we described MARKET analysis, competitor analysis, analysis buyer behavior , hierarchy of organization goals and the next step to STP of nestle company ,so we explain product strategy , price strategy and distribution strategy ,communication strategy and ther things related to a marketing plan such as marketing budget and last of our project sale forecast for last 5 year.. Innovative technology, , Globalization, Matrices, , Financial Review, Porter¶s five model, Industrial analysis, Five Ws and Future Plans Of Company. Brand Audit 3 Nestle juices SITUATION ANALYSIS Brand Audit 4 Nestle juices INTRODUCTION AND HISTORY OF COMPANY History In the 1860s Henri Nestle, 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 Nestle’s new formula saved the child’s life, and soon, Farine Lactee Henri Nestle was being sold in much of Europe. 1905-1918 In 1905 Nestle 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, Nestle’s production had more than doubled. 1918 -1938 After the war Government contracts dried up and consumers switched back to fresh milk.
However, Nestle’s management responded quickly, streamlining operations and reducing debt. The 1920s saw Nestle’s first expansion into new products, with chocolate the Company’s second most important activity 1938 -1944 Nestle 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, Nescafe, which was a staple drink of the US military.
Nestle’s production and sales rose in the wartime economy. 1944 -1975 Brand Audit 5 Nestle juices The end of World War II was the beginning of a dynamic phase for Nestle. 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’Oreal in 1974. 1975 -1981 Nestle’s growth in the developing world partially offset a slowdown in the Company’s traditional markets.
Nestle made its second venture outside the food industry by acquiring Alcon Laboratories Inc.. 1981 -1996 Nestle divested a number of businesses1980 / 1984. In 1984, Nestle’s improved bottom line allowed the Company to launch a new round of acquisitions, the most important being American food giant Carn tion. 1996+ The first half of the 1990s proved to be favorable for Nestle: 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, Nestle merged its U. S. ice cream business into Dreyer’s, and in August, a USD 2. 6bn acquisition was announced of Chef America, Inc. Nestle Today: Today, after 142 years it was first used, the nest continues to be the corporate Identity of Nestle as the worlds leading Food Company and remains the symbol of quality. Nestle, the symbol of quality and commitment in the field of food products. Nestle is the world No. 1 food company. It is the 5th argest company in the world according to its turnover. It is present on all five continents, has an annual turn-over of 70 billion Swiss francs, runs 522 factories in 81 countries, 200 operating companies, 1 basic re- search center and 20 technological development groups and more than 231,000 employees the world over. Brand Audit 6 Nestle juices The Company owes its current status to the pioneering spirit inherited from its founders which continues to inspire it, to its concern with quality and to its constant search for new ways of satisfying man’s nutritional needs.
Wherever possible, it sets up factories locally, employs personnel from the country concerned and relies on indigenous raw materials. Its agricultural services provide assistance to improve the quality and yield of the raw materials it uses. Much attention is de- voted to professional training and to the integration of the company in its economic and social environment. History of Nestle juices A well-known brand, FROST was introduced in 1986 and has the largest share of the countrywide market. Positioned as a cold drink and alternate to cola drinks, its strength lies in the convenience attached to its usage. NESTLE JUICES
Encouraged by the consumer response to NESTLE ORANGE JUICE that was launched in 1996, the category of NESTLE juices was expanded with the introduction of Mango-Orange and Mango flavors in the year 2000. This has further strengthened the position of Nestle as leader in the value added/premium drinks market. Consumer response to these new flavors has been very upbeat and is expected to gain further. Now nestle company have launch following juice brand in Pakistan. Indulge in the pure pleasures of a healthy life! Nestle brings you a range of juices that will scintillate your taste-buds and add variety to suit every moment.
NESTLE® Pure Orange Juice Oranges are in demand not only for their divine juicy flavor but equally celebrated for their health benefits. They are naturally low in calories, and an excellent source of Fiber and Vitamin C. Squeezed from the finest handpicked oranges, 100% pure NESTLE® Pure Orange Juice has no added sugar and is a good source of Vitamin C. Having Orange juice Brand Audit 7 Nestle juices everyday is a great way of strengthening the body resistance against infections and diseases and maintaining a healthy lifestyle. NESTLE® Clear Apple Nectar Apples have no fat and are cholesterol free.
NESTLE® Clear Apple Nectar is made from the finest Apples and is 100% clear. As irresistible as sin itself ± give in to the amber kick of NESTLE® Clear Apple Nectar. NESTLE® Red Grape Nectar Grapes also called the µqueen of fruits¶ are known for their great internal body cleansing properties. They are a good source of Vitamin C and Potassium that plays an important role in proper heart functioning by regulating blood pressure and heart beat. Relish the full-bodied, smooth flavor of NESTLE® Red Grapes Nectar and let your taste buds soak in the sensuous richness of Red Grapes.
NESTLE® Pineapple Nectar Pineapples are good source of Vitamin C, an antioxidant that helps fight against free radicals, one of the main reasons for aging. Made from premium pineapples, NESTLE® Pineapple Nectar brings you the exotic taste of pineapples with a refreshing tropical flavor and is a good source of Vitamin C. Brand Audit 8 Nestle juices NESTLE® Mango Orange Sink into Fruity Refreshment Feel the burst of fruity fun and discover the flavors of NESTLE® Mango & NESTLE® Mango Orange fruit drink made with the juiciest, sweetest Mangos and acy, sharp Oranges to sass up your taste buds. NESTLE® Chaunsa Nectar Nestle Chaunsa Nectar is prepared from the finest quality Chaunsa mangoes that are procured from the best fruit farms. The 100% rich mango nectar is nutritious, refreshing and wonderfully delicious. It helps to replenish the lost vigor during workouts and enhances your fitness by providing fortified energy endowed with dietary fiber, Vitamin A, C & E. NESTLE® Guava Nectar A chilled glass of pink Nestle Guava Nectar is not only great tasting but is also wholesome in antioxidants making it very nutritious.
Nestle Guava Nectar is rich in Vitamin A, Vitamin B, Vitamin C and Niacin and due to excessive fiber content it is an effective fat burner. Brand Audit 9 Nestle juices NESTLE® Mango Feel the burst of fruity fun and discover Nestle Mango fruit drink made with the juiciest, sweetest mangos to sass up your taste buds. Now that is a sweet deal! ! Brand Audit 10 Nestle juices Mission statement ?Good food good life? Build Branded food business to improve quality of life by offering tasty, affordable and highly nutritional products to our consumers while maximizing stake holders’ value?
VISION Explore all over the worlds-from baker to babies, parents to pet owners single servings to catering: providing for all their needs always with the assurance of Brand Audit outstanding quality. 11 Nestle juices VALU CHAIN ANALYSIS Rso rc s e ue Mngmn aae et Rsp n ility e o sib Dc mn tio ou e ta n e P dc Nw rout e e p e t troutio Dvlomn & In dc n Cn mr o su e Dmn e ad Esu gSp ly n rin up o s mr Cnu e S ics erv e as Sle & P dcU rout se Cn mr o su e Stisfa tio a cn Min in g a ta in & Ma re e t e su mn Cn u u o tin o s Imro e e t p vmn Ad u it Mngmn ae et Rv wQa e ie ulity Crre tiv oce Atio cn Our selected brand is nestle orange juice, to analyze the specific activities through which firms can create a competitive advantage; it is useful to model the firm as a Brand Audit 12 Nestle juices chain of value creating activities. Michael porter identified a set of interrelated generic activities common to a wide range of firms. The resulting model is known as the value chain and is depicted below. Primary activities Inbound logistics Operation Outbound logistics Marketing & Sales Service Inbound logistics
Major raw materials of nestle orange juices are different pulps of orange such from Germany and France. Nestle company is being getting there raw material from local market in the Pakistan. Nestle juices included their ingredient such as fresh fruit nectar of mango, apple, pineapple, orange, included their fresh juices. Nestle imported all machinery and formulas who is the advantage of nestle company. Operation PRODUCTION PROCESS Fruit juice production procedures involved in fruit juice manufacturing depending on What type of the juice the unit is going to make.
For the purpose of this -feasibility, we propose the 4% token juice drink of Citrus fruit (Orange), Mango and pineapple. Fruit Juice – Production Process Flow Production of fruit juices is a standardized process and initial preparatory processes for all fruits will be similar, as will be the last stages of juice/pasteurization section and packaging, although differences in handling juice composition arise in certain cases due to the nature of the fruit and percentage of vitamin involved. Basically, preparation process of juices involves the following steps:y Boiling of fruit y Storage in Tank y
Ingredients mixing y Syrup Storage in Tank y Juice Preparation Brand Audit 13 Nestle juices y Juice Storage Tank y Filling and Packaging y Cooling and Storage In the following pages the process flowchart and brief description of the various Processes involved in fruit juice production are outlined. Fruit Juice Production Process Fruits boiler where it is cooked and shifted to the plate heat exchanger. Then stored in the storage tank. Then supplied to the mixing tank in the desired quantity while in mixing tanks; any additives to the are made at this stage before it is pumped to syrup storage tanks.
Blended juice is then pumped through pasteurizer; where it is heated to 90oC to inactivate enzymes and living organism. After pasteurization the juice passes through final filtration, before loading it into a juice storage tank. Juice from the tank is ready for packaging Packing and labeling then storage. The juice will be then packed in the quantities demanded by the market. Consumer packs as like 200ml and 1000ml tetra pack and then label the nestle juices. Product will be in cool dry store. Brand Audit 14 Nestle juices Brand Audit 15 Nestle juices Out bound logistic
In Nestle Company the activities that include in outbound logistics are, they establish their sale and distributive offices in big cities like Karachi, Lahore, Islamabad, Faisal bad, Gujranwala etc. and also hire suitable distributors on agreed profit margins. Who bought from nestle office of the city and try to distribute to the each retailers and shop keeper in the city. Services Company established the customer center in each office in a city. And also given toll free number as a help line number which means that if customers feel any problem then they can contact through our help line.
Marketing and sale Nestle company launch their sale promotion scheme after six months and their last sale promotion was ? µ¶. This was for a retail shop who put the nestle juices billboard on their shop or sale reception table then they can win attractive prizes. By this operation they can save all the advertisement expenses which they have to pay to the retailer or owner of the shop. Nestle company use advertisement channels when company have to launch new brand or improvement in previous brand. So company prefer to use Jeo, ARY one world, PTV home, I vision and news papers.
They contract with the advertisement channels for 1 to 2 months and repeat 2 or 3 time in a day. They hire suitable distributors in a country at agreed profit margins who bought juices in bulk form from the distributive channels and then sell to the retailer who final sale to the end consumers. Nestle company has efficient market management who¶s main objectives for marketing their product are y Strong customer relationship y Identify need of customer like new taste new fruit item y Maintain market leadership by maintaining the pure quality y
Provide juices which are fit for human body Brand Audit 16 Nestle juices y Stop brand selling don¶t reduce quality y Quality is our grantee Supportive activities The primary value chain activities described above are facilitated by support activates. Porter identified four generic categories of support activities, the details of which are industry specific. COMPANY STRUCTURE Nestle head-office in Pakistan is in Lahore. It also has its registered office in Lahore. Nestle has divided the whole Pakistan in to three zones. y Northern Zone y Central Zone y Southern Zone
Nestle has 8 regional offices in all over the Pakistan. These offices work under their respective zonal offices. FACTORIES Nestle has two factories in Pakistan for the production of Juices items. One in Sheikhupura near Lahore. LOCATION OF FACTORIES Now we give some information about the company¶s factories of the company. FACTORIES Sheikhupura Factory Kabirwala Factory 29th Kilometers on Khanewal Road, Distt. Lahore Sheikhupura road Kabirwala. Sheikhupura. Ph. 0692-53168-69 Ph. 92-42-6369321-26 Brand Audit 17 Nestle juices Technology They used Tetra Recart restorable carton in juice packing.
The easy-open carton was more convenient and positioned the tetra packing juices as a premium product. High tech ? fat juices, France. Technology used to increase flavor and decrease the fat in juices. Plant capacity ± About 75000 kg per day fruit juice concentrate of orange and passion fruit. Plant equipment- Infeed fruit conveyor, fruit washer, fruit mill, screw pre heater, hydraulic press, press filter, aerator, tubular/ plate sterilized/ pasteurizer, jacketed storage tank and filling machine. Plant and Equipment The main plant and equipment will be for following activities Fruit handling &
Inspection/ washing Juice extraction Juice processing Juice finishing Centrifugation Homogenization Membrane filtration Pasteurization Concentration Essence recovery Reception De-aeration Concentrate post- Aseptic or non- treatment aseptic packaging Brand Audit 18 Nestle juices PEST Analysis Political or legal forces Taxation Law If government imposes heavy taxes on the industry then it badly effects the industry growth. The taxes impose is from government side and it varies from industry to industry. Juices have no tax except sales tax.
But nestle¶s some product has like butter and cream which has more taxes Labor Laws Labor is being privileged here having all the laws. Nestle company also follow these law like government announce minimum salaries of a employ Rs 6000. Laws on hiring & promotions Hiring & promotion is followed by law. People with better capabilities are privileged because they deserve it, for the betterment of the organization. As well as a well educated & skilled experienced person is a precious asset for the company suit should be hired on better term & conditions and be promoted on the basis of it capabilities.
Environmental protection Laws They do concern for environment and contribute more and more for the betterment of environment. Foreign trade Regulations Foreign trade regulation does not effect the over all policy and the working of the ? Nestle juices? because they operate nationally not internationally. Attitudes towards foreign companies They have no any agreement with any foreign company but if any company will offer the business to them related / unrelated they would think about it according to terms and conditions. Political instability
The government stability also plays a great role for any industry. In Pakistan government face lot of difficulty from the side of terrorism and also its activity that badly effect Brand Audit 19 Nestle juices environment of the country which is totally very upset. Recently in Punjab instability of government creates lot of problem for the industry like shortage of electricity that badly affects the industry operational process. Nestle juices have not much affect this condition but in future it may be face some difficulty for operating. Economic forces Inflation Rate:
Now in Pakistan inflation rate is almost 22. 3% so if increase in inflation rate then increase in prices of Nestle JUICES but if in Pakistan economy. Economic growth rate Economy growth rate accelerate is 7+ Social factor Health consciousness Today people are more health conscious so Nestle juices by identifying this need of the people they are also producing health conscious juices with more vitamins. Demographic trend In Pakistan the population growth rate is 1. 828% in 2008 and total population is 167,762,040 (July 2008 est) Age structure y y y 0-14 years: 5-64 years: 65 years and over 40% (male 33,293,428; female 31,434,314) 56. 9% (male 48,214,298; female 46,062,933) 4. 1% (male 3,256,065; female 3,542,522) Key Indicators y y Population: Growth rate: 164,741,942 (July 2007 est. ) 1. 828% (2007 est. ) y Birth rate: 27. 74 births/1,000 population (2007 est. ) y Death rate: 8 deaths/1,000 population (2007 est. ) Brand Audit 20 Nestle juices Environmental concerns: About the environmental concerns of Nestle juices is good health. Work life quality: Quality of work life is very safer & environment friendly Lifestyle changes:
They consider quality life changes and take advantages of accordingly so that customer can convinced as well as it plays a vital role to attain & retain the customer. Consumer adopts the trend of changing environment because of modern facility as well as globalization they are aware about each and every thing happening all around them. Technological forces New Products Nestle juices focusing concentric and conglomerate diversification because in present era it is not possible for any organization to exist in market for long run by providing just one product.
So Nestle juices are diversifying according to changing demand of customers and trends. Product innovation Product innovation is becoming more necessary for the organization because of globalization people are becoming aware about the changes being taken place around them so in order tactical the situation nestle juices is focusing on product innovation by introducing new flavor of juices with the passage of time NESTLE JUICES use new tetra packing like easy open cork of pack. Productivity improvement through automation Automation don¶t matter a lot but to some extent it contribute towards productivity and improvement.
Imported pulp is filled in machines for processing after the final form of juice it is packed in 250 and 1 liter packing. Brand Audit 21 Nestle juices Total spending on R&D Spending on R&D is long term investment for any organization. Nestle has R&D department and head of R&D department is Mr Arshad Bhati. Nestle total spending on R&D 70 millions. New communication technology All the modern as well as traditional ways of communication are being adopted by Nestle juices including own emails, letters, faxes and monthly visit in different offices of Nestle juices for better communication among supplier, istributor and customers. Nestle juices has also established own web site which can be visited any one for most recent news innovation and activities being taken in the organization. Market analysis Currently in Pakistan, there are 24 fruit juice/pulp processing units and a number of small units in the informal sector are working. The present installed capacity is estimated around 400,000 metric tons per annum with a demand for juices growing at a combined annual growth rate of 27%. The fruit juice industry reported sales of 8. 526 billion Rupees in year 2008. 250 200 Eas Column 2 Column 3 150 100 0 0 2001 2002 2003 2004 2005 2006 2007 2008 y The outlook for the canned food industry – which can exploit rising demand for convenience and consumer fears over food origin and hygiene – and the soft drinks and beverages industry – which can capitalize on the asp rational Brand Audit 22 Nestle juices demands of Pakistan’s young population – have both been moderately accelerated. Forecast canned food sales growth to 2012 now stands at 46. 7%, while soft drinks sales growth to 2012 is forecast to stand at 36. 4%. Both have contributed to a per capita food consumption growth forecast amendment to 15. %. It is also expected that the average consumption of the single person will be 85. 5 hundred litters per years in 2012. y 2500,000 liters juices approx drink by Pakistani people in a month. And per day there is 83330 liters approx juices drink by people. y The market of juices is growing because the consumption of juices increases every year and expected it increase continually due people change the life style and more health conscious. They prefer juices on other soft drink. y The market share of the nestle juices is 60%. Which mean 1500,000 litters in a month and 50,000 litters in a day. y
Nestle is name of pure life so quality is their guarantee. So if they lose their quality then they lose their sale because these don¶t operate on the given image. And increase in rates of raw materials also influence the level of demand because due to increase in cost the sale price also increase and due to price war in a market of Pakistan demand level is effected. Or increase in tax there will be increased cost price which also effect in decreased in demand. Increase in inflation rate in Pakistan then this also effect in decrease in demand level. y The nestle juices are at growing stage of product life cycle. Brand Audit 3 Nestle juices Competitor¶s analysis Competitor analysis in marketing and strategically management is an assessment of the strengths and weaknesses of current and potential competitors. This analysis provides both an offensive and defensive strategic context through which to identify opportunities and threats. Competitor profiling coalesces all of the relevant sources of competitor analysis into one framework in the support of efficient and effective strategy formulation, implementation, monitoring and adjustment In order to evaluate the competitive position we have to take a look on the competitors of ? Nestle juices? n JUICE CATEGORY. Competitors in market y Shezan y Haleeb y Malee y Country y Fraz Shezan is the main competitor of ? Nestle juices? nestle juices compete their customer on quality basis because In Pakistan their in no big name in pure fruit juices. nestle provide their customer pure fruit juices. Brand Audit 24 Nestle juices Shezan Short introduction of Shezan The Shezan International Limited was incorporated on May 30, 1964 as a Private Limited Company. Shezan International Limited was conceived as a joint venture by the Shahnawaz Group, Pakistan and Alliance Industrial Development Corporation, U. S. A. in 1964.
Shezan is the largest food processing unit having developed and installed the capacity to meet the country’s local as well as export needs. In 1971, Shahnawaz group purchased all the shares of Alliance Industrial Development Corporation with the permission of the Government of Pakistan. In 1980-81 a separate unit was installed in Karachi which now caters for Karachi, Sind and export demand. A bottle filling plant was set in 1983 in Lahore, Punjab. An independent Tetra Brik plant was commissioned in 1987. In the year 1990 it was decided to install a juice factory at the Hattar in North West Frontier Province of Pakistan.
Shezan International’s Head Office Located in Lahore, Pakistan. In Canada, Target Foods, is the authorized distributor for all Shezan Products. They carry all the export quility Juices, James, Pickles, Chutneys, Sauces, Syrups and Squashes. The products of the Company include tetra pack juice, mango juice, pickles, custards, vegetables, jellies and jams. The Company distributes the products under the Shezan brand name. y Strong local name in the juice and drinks range ± Launched Shezan Orange ± Launched Twist (nectars) 2003 ? Aggressive marketing campaign print, electronic ±
Shezan All Pure 2004 ± No trial generation activities ? No consumer reward/loyalty CPs ? Available packaging options ± Shezan All Pure ± Nectars ? Brand Audit 1 Ltr Twist 25 Nestle juices ? Shezan nectars 1 Ltr Swot analysis of shezan juices Strengths: 1. Shezan has it own fruit forms. 2. Shezan juices operate in market earlier than nestle juices. 3. Better knowing the culture of country. 4. Shezan juices have best distribution channel in all over the Pakistan. 5. Offer good quality products especially nectars juices in market. 6. Shezan juices have good positioning in customer mind.
Weakness 1. Less product awareness in customer mind. 2. Rising manufacture cost 3. Inadequate human resource Opportunities 1. Shezan juices have great perception value in minds of customers while as Pakistan organization. 2. Increase juices market very fast. 3. The concentric diversification in different juices products. 4. Backward integration can use in juice products of Company. 5. Decreasing economy condition. Threats 1. There is strong competition in juices market. Brand Audit 26 Nestle juices 2. Different strategies adopted by competitors Nestle in juices products 3.
New product advancement by different competitors. 4. Increase inflation rate (23. 3% 2008) 5. Rising labors coast. Swot analysis of nestle juices Strengths 1. Company Image Nestle company has a great image in the mind of people. Nestle company has worldwide reputation. 2. Quality Conscious Nestle produce a good quality products. It can not compromise on quality. 3. Well-developed strategy Nestle has recognizes there is a right time and place for their product; therefore, their strategy makes room for adjustments 4. Market Share Nestle juices has a highest market share i. e. 0% in juices market. 5. Good marketing skills and services Nestle is now a days working on this concept because they want to increase their market share. They are providing quality products to the customers that include their services and products. 6. Brand strength – In Pakistan Nestle has some very strong brands like Nescafe, Maggie, Cerelac, nestle water and these brands are almost generic to their product categories. Brand Audit 27 Nestle juices 7. Research Research and development department keeps Nestle in continuous knowledge about itself and competitors. t has a competitor advantage because many local juices have no research & development department. 8. Product innovation – The Company has been continuously introducing new products, thus expanding its product offerings. 9. HR department Nestle company has a strong HR department. Weaknesses 1. Storage ability Nestle juices not store able for long time. Opportunities 1. Support foreign investors Government support foreign investors to invest in Pakistan. 2. Scientifically gas This is great opportunity for nestle company.
Because in coming future nestle take the benefits of uses the scientifically gas. 3. Changing Social Trend Consumers in urban areas drink functional drinks on a regular basis as they increasingly adopt Western lifestyles, especially the younger generation which is hugely influenced by the Western media. Younger consumers tend to follow Western eating and drinking habits. There was an increase in demand for functional drinks over the review period. 4. Health conscious Increasing health and hygiene awareness among Pakistanis has greatly increased sales of fruit/vegetable juice products.
Both the government and the media have started health awareness campaigns to make Pakistanis realizes that consumption of fruit/ juices is as essential as eating food. Fruit/ juices are doing very well in both urban and rural areas Brand Audit 28 Nestle juices 5. Global hub Since manufacturing of some products is cheaper in Pakistan than in other South East Asian countries 6. Market growth Juices market expands very fast . A new research proves that in future (2012) every person use 85. 5 liters juices per years. 7. limited options in real fruits juices
Limited options in locally produced real fruit juices. Threats 1. Government Regulation They face problem if government employ taxes on them which force them to raise the price of their product. 2. Increase in competition There is large competition in juices market 3. Entry barrier There are no many entry barriers so a large numbers of local juices enter in juices market 4. Labor coast Increase labor cost 5. Inflation rate Increase inflation rate very fast . In 2008 expected inflation rate 23. 3%. Brand Audit 29 Nestle juices Porter five forces model
Michael Potter’s five forces framework can be used to determine whether the industry is attractive enough to sustain a small or medium size enterprise. The five forces of Entry, Rivalry, Substitutes, Buyers and Suppliers jointly determine the intensity of competition and profit potential for a small and medium size firm in a given industry or market sector. In analyzing each market force, the question is whether it is sufficiently strong to reduce or eliminate industry profits. The focus at this stage is at the industry level because industry dynamics and profits of necessity dictate profits of other firms that enter the industry.
Also, in carrying out a five forces analysis we want to be able to answer this question: If the competitive forces in the industry are strong, is there some strategy that firms might employ to defend it, or influence the forces in their own favors? Brand Audit 30 Nestle juices Threat of new entry: The threat of new entrance means when any other company that is not operate in that product category but operate in the other product market or the compant that start it new venture see a opportunity in this field like juices and they decided to enter in this market.
So the current company that is operating in the market has a great threat for the new entrance. New entry can raise the threat of competition. In juices market there is great threat of new entry. Because in last few years many new juices enter in market. There is no major barrier for local juices to enter in market. So many local juices enter in market like FRAZ, COUNTRY. There is some barrier for stop the new entrance Economies of Scale Product Differentiation Capital Requirements Switching Costs Access to Distribution Channels Brand Audit 31 Nestle juices
Cost Disadvantages Independent of Scale Government Policy If all these things present in the market then no company want to enter in that market because they know there is no any opportunity for it. Bargaining power of supplier The company needs raw material, labors, component and other supplies. These requirement leads to buyers-suppliers relationships between industry and the suppliers. Suppliers, if powerful can exert an influence on the producing industry, such as selling raw materials at high price to capture some of the industry profits.
Suppliers have great bargaining power if the company can not produces its raw materials or other ingredients. Suppliers have weak bargaining powers, if in the market many suppliers and demand of raw material is low. Buyer Power Bargaining power of customer is one of the important forces in the porter five forces. In the field of juices customer has a low bargaining power because they purchase a single unit and have not in that situation that they can negotiate with seller on price matter. But the bargaining power of those buyers whose buy in bulk have great and they want to set the price on their concern.
Here you ask yourself how easy it is for buyers to drive prices down. Again, this is driven by the number of buyers, the importance of each individual buyer to your business, the cost to them of switching from your products and services to those of someone else, and so on. If you deal with few, powerful buyers, they are often able to dictate terms to you. Threats of substitutes Substitute products refer to products in other industries. To the economist, a threat of substitutes exists when a product demand is affected by the price change of a Brand Audit 32 Nestle juices ubstitute product. A products price elasticity is effected by substitute product ± as more substitute become available, demand becomes more elastic since customer have more alternative . A close substitute products constrains the ability of firms in an industry to raise prices. While the treat of substitutes typically impact an industry through price competition. If substitution is easy and substitution is viable, then this weakens your power. The substitute product has a strong affect if the following things are occurred Sales of substitutes are growing rapidly
Producers of substitutes plan to add new capacity Profits of producers of substitutes are up In juices market nestle juices has great threat for substitute like Shezan, Haleeb etc. Competitive Rivalry The big factor determining the strength of rivalry is how actively and aggressively are rivals employing the various weapons of competition in jockeying for a stronger market position and seeking bigger sales. In the market rival create a great threat. Many companies introduce juices in market and increase threat. Many local company enter in market, there is also great threat for establish company.
Nestle juices also face lot of competitor rivalry. Some carbonated company introduces juices in market, it also create threat for nestle juices. The main competitors of Nestle juices in the market Shezan, Haleeb. Brand Audit 33 Nestle juices Analyze buyer behavior Initiate buying behavior There are two stimuli that insist the consumer to purchase the product that is 1) Consumer internal stimuli 2) Consumer external stimuli Customer external stimuli There are following types of people group include in the internal stimuli Family Reference group
So children, Individual and member in a group are the person who may initiate the buying process. Usually young generation and families initiate the buying process. Customer internal stimuli A person also insist itself to drink juices due to its internal desire to drink the juice. It is called internal stimuli Sometimes if there is group of same age people like young generation friends group then any of one or more then two person can insist to drink juices. Distributors and retailers role in buying process Product after passing through Distributors and Retailers reach to the final customers.
So they play very imported role in buying process because distributors are those persons who first buy the juice in complete packing then sell to the retailers so distributors start their purchasing after deciding the profit margins rate and area to distribute the juices. Similarly retailers after buying juices from distributors they sell to final customer after analyzing the brand loyalty and after the judgment of the packing and attractive offer for the retailers of any promotion scheme for the retailers and profit margins. Source Asim Bakers Al Meraje Bakers China Bakers
Factors stimuli to purchase. Brand Audit 34 Nestle juices There are the following factors that insist the person to buy the juices. These are Thirst Taste & Flavor Fit for body Most persons drink the juices due to taste and different fruity flavors. Some people like co2 water but some people like without co2 juices. So many people like to drink soft juices like nestle fruit juices due to natural taste and flavor Similarly now a days people are more health conscious so due to fruity mixture they desired to full fill their esteem needs and so they drink that juices.
Evaluate the alternative product Customer evaluates the product by considering the brand company and their ingredients and packing. They also check the taste, flavor and quality. If the flavor and ingredients are satisfied for the customer and better then the competitor then customer can insist itself to buy that juice, otherwise customer may can choose the competitor¶s juices. Who take final decision Usually family main members take the final decision to purchase juices. But a single person also can take that decision according to his or her desire. They also implement the purchase transaction.
In a family if the main family member implement the purchase transaction and whole family drinks the juices. Juices are disposable means after drinks mostly packing of the juices are disposed. Marketing Segmentation We are going to segment juice market on the basis of need. There are following need which we came to know that people like to drink during the following stages: For Travelling and occasional Usually People like to drink during travelling. Because they have to carry single or small packing and juices are the best for that. Juice provide them suitable taste and flavour.
Brand Audit 35 Nestle juices For domestic use Nestle distributes that volume of juice for large family use which may be used in any events and occasions like use with breakfast and dinner etc or serving the guests etc. Targeting 200ml For Travelling and occasional 1000ml For domestic use Nestle is first company who launch the these two packing in juices who provide the satisfaction more as compare to competitors but now competitors also move this segment and according to that we are going to launch segment of food energy drink. Identifying new segments
In Pakistan our segmentation strategy are so strong and the result all the established areas have availability of our juices and our target goals achieve easily but according to the competitors are moving our segmentation we will launch new segment of food energy drink for the sportsmen and professional working people. Positioning Brand strategy is at the heart of marketing strategy. It is the act of designing the company offer and image so that it occupies a distinct and valued place in the target customer mind. Nestle brings you a range of juices that will scintillate your taste-buds and add variety to suit every moment
Oranges are in demand not only for their divine juicy flavor but equally celebrated for their health benefits. They are naturally low in calories, and an excellent source of Fiber and Vitamin C. Squeezed from the finest handpicked oranges, 100% pure NESTLE® Pure Orange Juice has no added sugar and is a good source of Vitamin C. Having Orange juice everyday is a great way of strengthening the body resistance against infections and Brand Audit 36 Nestle juices diseases and maintaining a healthy lifestyle. Point of parity Different flavor Tetra packing Point of difference 100% pure juice Enhanced nutrition
This is the point of differentiate that nestle always provide good and pure juices which is fit for human body Brand element Name Nestle juices is the brand name. Slogan & logo Slogan is the short phrase that communicates descriptive or persuasive information about the brand. 100% pure is the slogan of Nestle juices. The slogan shows that nestle pure juices have good quality and taste. Nestle juices slogan wants to create image of pure juice with good taste and quality in the mind of customer. Logo of Nestle juices in word marks with text it own name Nestle. Product strategy core benefit
Core benefit means the services and benefits the customer is really buying. Our customer fulfills its need of thrust and refreshment by buying our nestle juice. Basic product Brand Audit 37 Nestle juices It¶s mean what specifically the actual product is. Our actual product is juice Excepted product A set of attributes and conditions buyers normally expect when they purchase this product. Normally customers want to drink a juice with greater taste and flavor so nestle provide great and pure juices. Augmented product A product that include features that go beyond consumer expectations and differentiate the product from competitors.
Our juice taste and flavor is according to the customer expectations because we provide 100% pure juice. We have no compromise with quality. We try to provide maximum quality and satisfaction to the customers. Quality is our guarantee and we promised to the customers that we stop the product rather to low the quality of product. Potential product All possible augmentation and transformations the product or offering might undergo in the future. In future we will introduce new pulp juices in the market nearer future. We will launch special juices for sports men and professional working people. Brand Audit 38 Nestle juices
PRODUCT COMPARISON IN MARKET COMPANY QUALITY SERVICES LOCTION EXTRA OF FACILITY PRODUCT Nestle Haleeb Shezan Better Normal Good Excellent Normal Normal Excellent Normal Good Good Normal Average Communication Strategy Nestle company use different sources to communicate their target marketing. nestle company use those sources on that the more customer attract like TV, NEWSPAPERS, BILLBORD and when they lunch any secame in juices they use pamphlets to aware their customer. When launch the new juice or new sale promotion for the juice then they spread the awareness about their brand through following communication strategy.
Communication objective Nestle company use different sources to attract their target customer. The objective of nestle produce awareness in our customer about new products and also produce awareness to new customer about nestle juices. Nestle also tells their customer that nestle provide pure juices to their customers. Nestle also give the knowledge of nestle juices that they give you energy and good taste. Nestle also give message that nestle juices are good for your health. Communication strategy of competitor Nestle main competitor is shezan juice. shezan also use the same communication strategy which adopted the nestle juices.
Shezan is also advertising through TV, new papers, billboard. Brand Audit 39 Nestle juices Adds in TV channel Nestle juices give ads on different TV channel at different time . nestle management also keep in mind that their competitors use what channel and what time they give adds. Nestle management also keep in mind what type of customer they attract and what time they sit before TV. nestle juices different time on different channel to keep in mind the target customer TV watching time. nestle juices give ads on PTV home,GEO,ARY an PTV news. News papers Nestle company advetise their juices through news papers. arge numbers of custmers have reading habits of news papers, so nestle use the media of news papers to attract their customer. nestle management also keep in mind that their competitors use what type of news paper and what time they give their ads. so after all these analysis nestle select DAWN and NAWAE-WAQT. nestle give their ads on both news paper at the time of Sunday. Billboard Nestle juices attract their customer through billboard. Nestle company select the main city in country and those places where large numbers of customer easily attract. Nestle has a polices to use 500sqr fts in each region Marketing budget TV budget Channel Ptv home Geo ARY Ptv news Brand Audit Timing No ads 7. 30am 2 2 9. 15pm 10 pm 2 8 pm 2 9pm 2 Price/mint Total 100,000(Rs) 232226 132226(Rs) 50000(Rs) 70000(Rs) 40000(Rs) Total 40 50000 70000 40000 392226(Rs) Nestle juices nestle juices give their ads on tv when the juices season on pack. Nestle give its juices ads on different tv channel 24days in different timing. total cost on this advertisement 9413424(rs) News paper budget News paper size Day Price Dawn 27? 4 Sunday 430920(Rs) Nawa-e-Waqt 27? 4 Sunday 1,782,000(Rs)
Nestle juices advitise their juices on news paper in top season . the total coat on advitisement is 17703360(Rs). Billboard budget Nestle has a polices that they cover each region with 500 sqr fts. in small city the use less billboards. the coast of billboard in different cities has different. there are three rate 40000,70000,and 125000(Rs). total coast on billboards 2560000(Rs) Total advertisement budget Advisements sources coast Different TV channel 9413424(Rs) Different news paper 17703360(Rs). Billboard 25600000(Rs) Total coast 52716784(Rs) Distribution Strategy Brand Audit 41 Nestle juices
Nestle Company establishes the distribution channels in each famous city of Pakistan like Islamabad, Karachi, Lahore, Gujranwala, Faisalabad etc. They also acquired the suitable distributors in each city. They hire maximum two or three distributors in a city due to prevent from their own competition. The provide the margin to the retailers is equal to the interest of band like 7% to 8%. They also pay to use the shelf to store the nestle juices to the retailer for sale to the final consumers. Manufacture Where houses Distributor Whole seller Retailer Customer Nestle juices uses different channel to distribute their product.
First of all the finishing goods stored in the ware houses and the next step products sending you the distributor and distributor distribute throw different channel to whole seller to realtor Brand Audit 42 Nestle juices and the end to purchasing customer. Nestle distribute their product regularly to distributions because their customers satisfy nestle services. Nestle company distribution channel urban areas and rural areas, in rural areas the wholesaler distributes the Nestle juices to the retailers store, and the rural areas the distributor have a responsibilities to distributes the product to all the realtors stores.
Nestle company target market in Pakistan all the big and important cities Price Strategy Nestle juice are available six flavored and two size in the market. One is 200ml and second is 1000ml. The packing of 200ml target of individual customer and 100ml packing target the whole family. 100% clear juices, the prices on the base of cost of ingredients as well as other operational costs like processing, weighing packaging and logistics. Pricing objective Maximum profit margin
Nestle juices is a big price objective that they provided high quality and positing and we taken premium price to our customer other than our competitors. Nestle juices contain maximum profit margin other than their competitors. Quality leadership Nestle juices is a main objective that its responsibility to provided best quality who they promised to their customers and they fulfill their promised. In the recent research nestle juices is market lender in the soft drink market. Long relationships with customer. Brand Audit 43 Nestle juices