SUBMITTED TO: MA’AM FAIZA SHAHANI

SUBMITTED ON: 3 OCTOBER 2020

ASSIGNEMENT: MARKETING PLAN
SUBMITTED BY:
SYED AHMED ALI SHAH-1911135
MUHAMMAD SHAH RASHDI-1911116
MOHIT-1911113
Introduction to Nestlé Pakistan:

Nestlé Pakistan is a subsidiary to the parent company Nestlé, which is a Swiss corporation that
specializes in food and drinks, operating over multinational boundaries; in 191 countries.
Nestlé's headquarters are located in Vevey, Switzerland. Nestlé Pakistan Ltd was established in
1988 under Karachi and Lahore stock exchanges, and it is also a part of Milk Pak ltd in the form
of a joint venture.

The main headquarter of Nestlé Pakistan is located in Lahore with the production facilities
extending up to four different locations. For the means of bottled water productions, Nestlé
Pakistan has stationed their factories respectively in Islamabad and Karachi, where as Kabirwala
and Sheikhupura have both separate factories for specializing in the production of multi
products, that can range from anywhere between foods and drinks. Much to these achievements,
the factory in Kabirwala is crowned to be the largest milk plant in the world for Nestlé
subordinate companies.
It has also been declared as in the top 25 companies in Pakistan. Nestlé Pakistan also runs system
of the largest milk collection in Pakistan; collecting estimated milk from 190,000 farmers, that
are located between Sindh and Punjab, area ranging from 146,000 square kilometer. What makes
Nestlé Pakistan superior to all its competitors is the quality and product safety that they provide
which is unmatched, it also plans on leading with their nutritious and healthy products. They also
ensure that their measures are environment friendly and ethical, while benefitting the
community. Their products are available in Pakistan in vast numbers, easily accessible to even
remote areas. Nestlé Pakistan states on its official website that "People, products and brands are
the main flag bearers of the Company’s image.", which is accurate as the company itself is
highly reputable. Nestlé has shown great commitment with Pakistan as it continues to invest and
work for the development of Pakistan, which includes Rural Development and enhancing the
quality of people's life via its healthy chain.
The motto of Nestlé is “Good Food, Good Life”.
Nestlé Pakistan, in the records is known to spend over RS 50 Billion, with a turnover of RS 51
Billion annually.

Executive Summary:
Food is an essential item for the span of our lives, as it ensures our safety and health, leads us to
a prosperous life; for which Nestlé promises to provide the required quality and standard. Their
main goals states that their main goal is to deliver qualitative products to its customers. Nestlé
extended their reach to Pakistan, by launching a subdivision of their company in the name of
Nestlé Pakistan ltd, which operates in the most remote areas of this country. Nestlé Pakistan is
the leading producer of foods and drinks in this country.

Situation Analysis:

Market Analysis:

The market analysis takes both internal and external affairs of the business into consideration, as
both these aspects can result into a dramatic influence on the performance of Nestle Pakistan.
This company states "Brand Building the Nestlé Way" about their marketing. Nestlé has a
distinctive approach that sets it apart from other competitors, by bringing in innovation through
product and packaging, also partaking in the values of consumer insights. Nestlé Pakistan also
join hands with the sales groups, eBusiness partners and different levels of agencies to further
strengthen their market.

Internal Business Environment:

Internally, Nestlé Pakistan has a very sturdy management structure, with highly qualified board
of directors and managers. The top management for this company is vital, as it serves as the
source of authority and generates a common direction for this company, through planning and
coordinated functions. So, their management prowess is satisfactory, along with highly effective
chain of command. So, it would be easy for Nestlé Pakistan to regulate this product, to catch any
flaws or errors being caused by the development of this product, upon which they must register
immediate action, so that the damage can be contained.

External Business Environment:

Externally, Nestlé Pakistan has a powerful name, that represents safety and products of high
standard. Buzz energy drink will be a part of that food chain, meaning that they will have to
maintain good consumer communication, to collect their responses efficiently. Nestlé displays
honesty, integrity and fairness with the suppliers, developing a great connection between them,
while gives them the ability to negotiate with them. Nestlé also ensures safe measures, and a
healthy work environment.
Nestlé has to also keep the factors of economy in consideration as well, the inflations and change
of taste, or how the consumers are being attracted.

Mission Statement:

Nestle on the whole wants to be recognized as the leading nutrition, health and wellness
company. As explained by their mission statement, which reads "Good Food, Good Life", and
the company actively tries to develop new plans and strategies accordingly. They specialize in
influencing the social environment by behaving responsibly, and producing products that
encourage a healthy style.

The existing mission statement of Nestle Pakistan is as follows:

“To positively enhance the quality of life of the people of Pakistan by all that we do through our
problem, our brands and products and our CSV activities.”
At Nestlé, we believe that research can help us make better food so that people live a better life.
Good Food is the primary source of Good Health throughout life. We strive to bring consumers
foods that are safe, of high quality and provide optimal nutrition to meet physiological needs. In
addition to nutrition, health and wellness, Nestlé products bring consumers the vital ingredients
of taste and pleasure. As consumers continue to make choices regarding foods and beverages the
consume, Nestlé helps provide selections for all individual taste and lifestyle preferences. Nestlé
is dedicated to providing the best foods to people throughout their day, throughout their lives,
throughout the country. With our unique experience of anticipating consumers’ needs and
creating solutions, Nestlé contributes to your well-being and enhances your quality of life.
“Research is a key part of our heritage at Nestlé and an essential element of our future. We know
there is still much to discover about health, wellness and the role of food in our lives, and we
continue to search for answers to bring consumers Good Food for Good Life.”
Product Life Cycle:
The product life cycle of Nestle consists of all the main 4 elements, that includes introduction,
growth, maturity and decline.
Introduction is where a product is newly launched into the market, which in Nestle's case is Buzz
energy drink. The company has introduced many more products in the past, including Nesvita,
Nesfruita, Nestle Milo and many more. The growth is very convenient for Nestle, due to its
already well-maintained image in the market, and through the strategies they implement, for
example Nestle Crunch and Nestle Coco Cereal, these two products gained massive consumer
base in the early stages. As far the maturity cycle is concerned, Nestle Pakistan is well
experienced with a good number of products that lie within this phase, for example Nido, Every
day, Fruita Vitals, Cerelac, Cornflakes and considerably many more. Although the company has
a great statue in this market of this country, it has also had a fair share of products that were
unable to maintain their status and were faced with their ultimate decline, meaning the
discontinuation of their production. An example of this is Nestle Yogurt and etc.

Market Share:

Nestle Milk Pack owns 45% of the market share in packaged milk brands. 85% of drinking water
market. 35% of market share in packaged juices. Through these statistics, we can logically
deduce that Nestle has a fine image established in the market.

SWOT Analysis of Buzz Nestle

Strengths
1: Gives You a good energy boost easy to pick enhance your mood.
2: Vitamin B can fight with cancer and heart disease and B12 keeps your nerves and red blood
cells healthy and helps you maintaining a healthy digestive system.
3: Better knowing the culture of a country.
4: Nestle always prefers good quality products.
5: Nestle having a wide range of distribution channel in all over the Pakistan.

Weakness
1: Health concerns
2: Price Strategy
Opportunities
1: Increase in the product line.
2: Nestle's drinks have great value in the mind of customers.
3: Can provide more incentives to retailer to enhance the sales.

Threats
1: Globally competition.
2: Increase in inflation.
3: Increase in price of raw material.

Strength
• Nestle has always brought up good quality products. They have never compromised on their
quality and the brand image of the company is very high so the upcoming buzz will give a tight
competition in the market.
• Having a great market share and a highly developed strategy along with best marketing skills
and services assures the new coming product must be introduced all over the market.
•The company's Research and Development program keeps on getting knowledge about itself
and the competitor so that they can fulfill the needs of the consumer.
• The company has always tried to bring such products which are healthy and keeps all the
records about what their customer needs.

Weakness
•Buzz being a primarily sugar-based drink will must face large amounts of criticism in upcoming
time from health groups. The present generation of consumers is increasingly becoming health
conscious and thus a high sugar drink like buzz is unable to penetrate their market. Although the
brand encompasses a sugar free counterpart available, its popularity and availability are nowhere
near that of the first product.
•Buzz is going to be introduced as a premium product. Its high pricing allows it to enjoy high
profit margins but at the identical time it also loses an enormous portion of the consumers. If the
brand was brought in the market into lower priced products, it will be enjoyed almost by the
whole population and would have increased sales as well but this might also result in the brand
being not considered as a premium one anymore. So, this drink is designed for the middle class
and above them.
Opportunities

•Consumption of energy drinks has increased to a large extent particularly among the age of 18-
35. Energy drinks are aggressively marketed with the claim that these products give an energy
boost to enhance physical and cognitive performance. A good amount of caffeine in energy
drinks provides the buyer with the specified effects of improved memory, increased alertness,
and pleasant mood. Therefore, knowing these facts of consuming energy drinks, the demand is
growing dramatically and a big increase within the consumption of those drinks has been
observed.
•Due to the gradual increase in the income of consumers of Asia and Africa. These were the
markets that the premium pricing factor was unable to penetrate before. However, in recent times
our upcoming product Buzz will be becoming an increasingly popular energy drink in these
markets. The sale of this product is directly proportional to increment in consumer purchasing
capability.

Threats

•The energy drink industry has only a few premium brands and a product like Buzz is also
introduced to the market as a premium product at any point in upcoming time. Certain cheaper
energy drinks have already been introduced to the market and are serving as a price friendly
alternative in comparison to these products. Buzz being a unique brand image is in a position to
safe its marketplace for now, but unless penetrated in the market these cheaper brands are surely
to cover more ground through aggressive marketing techniques.
•In multiple countries including like US if products being placed on the high number of sugar or
caffeine that usually beverages contain. If any such future regulation disrupts the energy drinks
market then Buzz are going to be required to completely rebrand themselves, and also redesign
their core product. This major threat to Buzz may cause loss in sales because the original taste
won't be retained by the brand and it should also significantly increase production costs. Along
with that the inflation rate is also a big threat and the pricing factor of raw materials can affect
the profit margins badly.

Whole Analysis

While Buzz being truly a unique product and along with the brand name Nestle are to introduce
this the product already has a positive factor in the market and the increasing purchasing power
of consumer helps it to be on the top. The brand also keeps an eye to the increasing consumer
needs and no compromise on quality as well.

Marketing Objectives

•Specific: The objectives are very clear. For example, the product Buzz must be available and
must achieve selling objectives. The selling objectives are made different for different shops
according to the size of shops and Frequentation, the type of clients.
•Achievable: The targets have to realistic. At first the product will show a slow progress in the
market as introduced but after effective promotion it would have a faster expansion, and if we
are able to compete the local drinks of the market the sales would have good grow. Along with
that a long-term vision is necessary and the company has to be reactive in the case of any
problem or complaint from the consumer.
•Measurable: The company should have various targets within the sales outlets and each Shops
are allowed reaching the objectives and sales. We will calculate the sales by day so as to know
how the client bought the merchandise. Hence in this way any strategy needed to enhance the
sales would be easy to apply.
•Timed target: Each objective should have a particular deadline, so that the various Sales of the
day, of the week, of the month can be calculated. With this step the data collected can help the
firm to change their Objectives or makes promotion to achieve their objectives.

Marketing strategy and Marketing Mix

Marketing Mix
•Product
The idea of introducing an energy drink in the market was due to the reason that energy drinks
are a product which has appropriated the drinks market worldwide, from usage during sports and
training to general consumption within way of life. After we examine a drinks cooler within any
quality shop, generally almost 50% of the general area is stuffed with energy related drinks. Our
eyes are swarmed by seeing various types, colors, sizes and generally the drinks ranged in price
according to quality and reputation of that particular brand. Unlike the other beverages company,
Buzz has kept its Product quite simple. To differ in some variation from its standard flavor, Buzz
will be launching a series of flavors to suit different customer needs and tastes. On the other
hand, the growing needs for sugar-free drinks among the consumers, Buzz has come out with
Buzz Sugar-Free drink too.
Price
Different products, different prices. These are some popular and common Nestle products that
number of people uses in daily life:
Nestle Nesfruita Mango Juice 1Ltr RS. 360
Nestle Nesfruita Vital Juice 1ltr Rs. 600
Nestle Nesfruita Vital Juice 200ml Rs. 40
Nestle Cerelac 175gm Rs. 249
Nestle Classic Coffee 100gm Rs.545
Nestle pure life water bottle 1.5ltr Rs. 55
Nestle Everyday Tea Whitener 1.3kg Rs. 1245
Nestle koko krunch cereal 300gm Rs. 535

Methods of Pricing or the Strategies of Pricing

Products by Nestle company can be found in the Near by stores, retail stores, gas stations, local
markets etc. They sell the products at the fixed price. Although the retail outlets are the ones who
are more into using pricing methods and strategies.

Pricing Methods
The competitor of the Buzz Energy Drink is Red Bull. It is a very famous Energy Drink. The fact
is that the competitor is selling its energy drink in a very high price range which often targeting
the elite class. Although Red Bull is our competitor but Nestle is coming up with low prices in
Competition-Based-Pricing.
Prices are going to be way lower than the competitor’s Energy Drink.
Nestle’s Product Buzz Energy Drink 250ml Can’s Price is 150 PKR.
Red Bull 250ml Can’s Price is 300 PKR
Pricing Strategy:
The strategy for Nestle’s product Buzz Energy Drink
Another drink’s price is going to be lower than the previous one.
There’s an example for better understanding: If you’re buying ONE can of an energy drink it will
cost you 150 then the second will cost oneself 295 and the another third one will cost oneself
580.
First 250ml Drink = 150
Second 250ml Drink = 295
Third 250ml Drink = 580
By these fluctuating prices there could be 3 possibilities.
1. Consumer will buy 1 drink at the standard/normal price.
2. Consumer will be buying 2 drinks and will get the benefit of saving 5PKR.
3. Consumer will be buying 3 drinks and will get the benefit of saving 10PKR.
In all these conditions mentioned above will increase sales of Nestle’s Product (Buzz energy
drink).
Planned Discounts for Special Occasions like Eid, Easter etc.:
First 500ml Drink = 290
Second 500ml Drink = 575
Third 500ml Drink = 860
Again, by these fluctuating prices there could be 3 possibilities.
1. Consumer will buy 1 drink at the standard/normal price.
2. Consumer will be buying 2 drinks and will get the benefit of saving 5PKR.
3. Consumer will be buying 3 drinks and will get the benefit of saving 10PKR.

Place and Distribution:

Selecting places for distribution is the main thing one needs to understand. Since, place plays a
vital role in the selling of a product Nestle has decided that it is going to target all the places.
For example: Markets, Local Stores and Shops, Shopping Malls, Cinema houses, and a different
service is going to be started that is delivery service. Nestle is going to deliver their products to
their consumers at their very own door step. By the help of this service number of consumers can
enjoy their buzz energy drinks in their homes whenever they need it.
There are number of different strategies of Distribution but Nestle company have chosen 2
different types of distribution strategies and they are:
Direct Distribution: Phone orders. In which consumers can directly contact nestle company for
the home delivery. Consumers can get the nestle products at their door steps.
Intensive Distribution: In which our products (buzz drink) will be available at every place
where people are more likely into purchasing a product and tasting it on the spot instead of
researching about the product and then consuming it. For example: Gas stations (where there’s a
small store), local shops near consumer’s houses and specially those places or stores near
highways or motorways where consumers/people take a break from their short/long journeys and
at that time they need some spark in their bodies so they can purchase and consume Nestle’s
Buzz energy drink in order to feeling energized.

Physical Distribution Issues:

Although Nestle is a famous and a well-known company but still the Buzz Energy drink is a new
product so its physical distribution is needing a little more effort.
Order Processing: Nestle is a name of reliability, quality and tasteful products so it is a
challenge for Nestle to keep himself on the top. In order to fulfil customer satisfaction and the
demand of customers Nestle will keep processing the deliveries of the products on time.

Warehousing: A warehouse is essential for a firm or a company and Nestle is a famous and
well-known company that needs a warehouse to storing products.

Inventory control: Inventory is a current asset and for Nestle inventory control is one the
important characteristics or a part of distribution.

Material Handling: For material handling Nestle uses machineries like forklift that is material
handling machine and material handling equipment which runs manually by a man. Nestle takes
the benefit of these automatic or manual machineries and equipment to handle the materials.

Transportation: In physical distribution transportation is one the most important component

that plays a main role in the distribution process. There are number of different transporting
options like by air, rail, road, sea but Nestle is focusing on by road transportation.

Promotion:
Good promotion of a product often leads to increase in sales and further leads to make better the
image of the company which strengthen the reputation of the company and its products.
There are number of types of promotions such as: Newspaper Advertisement, Door to door
selling, TV promotions, Billboards etc.
Nestle as a well-known company that promotes its products through Television Advertisements.
It costs Nestle way more than other methods of promoting but oneself knows that well that
nothing can replace the TV advertisement which are interesting for oneself to watch and it
attracts oneself to buy or taste that particular product. That’s is one of the main reasons that
nestle chosen TV advertisement promotions.

Implementing Monitoring and Controlling

Financial Forecasts are the future predictions of the events going take place in the future
relating to future year’s expected and revenue costs. Mainly there are only five major
expenditures of the marketing and they’re cost of research, product development, product,
promotion and distribution as well.

Implementing
Implementing means execution or put your plans into an action. That means whatever you have
planned you are going to implement all of them into an action that will take place. Those plans
are either in your mind or written on a piece of paper. But execution of those plans in real life is
called implementation. Successful marketing plans works when you’ve right people (Productive,
positive, work oriented) in your organization. People who knows the importance of the work, the
importance of those plans that are going to be executed and the need of the execution of those
goals or plans for the betterment of the organization.
It is important for Nestle to main the its reputation by producing products timely and efficiently
in order to provide their demanded products to the customer/dealers.

Monitoring and Controlling:

Both monitoring and controlling is important in order to stay updated that whether the strategies
are working or not and if not, then should it needs to be changed. Nestle as a firm also needs to
monitor and control and in order to do that it needs to follow the marking plan.
1. Sales Analysis:
Sales analysis is the examination. It examines sales by breaking down the sales of the firm
into different segments of the market for the identification of the firm’s weaknesses and
strengths. To get to know which areas are the strengths and which ones are the weaknesses.
Nestle needs the ensure that it should make their products available in all the areas for
maximum sales.

2. Market Share Analysis:

Market share analysis compares one firm’s sales with the other competitor’s sales. Nestle is
targeting different age groups specially youngsters who demands for energy drinks like one
of the Nestle’s product buzz energy drink.

Marketing Profitability Analysis:

Marketing profitability analysis mainly focuses on cost of the profit and the marketing of the
products. Nestle is a famous company and so the decision makers need to know that
marketing profitability analysis is important for Nestle so that they can do examination and
can take action according to the results. For example: When Nestle needs to change their
product.

Market Research:
Market Research is all about research of the market, collecting information about target
markets (in depth) that which segment are you targeting and what is the need of those target
markets.
Like others Nestle also conducts market research in order to get to know about their
consumer needs and then fulfil them.

Factors Influencing Consumer Choice

It is important and needed for a business to look at some factors that influence the choice of
consumers and Nestle needs also need to look at these factors those are:
1. Psychological factors
2. Sociocultural factors
3. Economic factors
4. Governmental factors
 1. Psychological factors which influence the behavior of the consumers to a product
are perception, motivation, personality, learning, attitudes etc.
Nestle observed the need of the youngsters and decided to introduce Buzz energy
drink.

2. Sociocultural Factors which influence the behavior of the consumers to a product

are family, subculture, culture etc.

3. Economic factors are affordability, income that is disposable. As compared to the

competitors Nestle products are highly affordable.

4. Government Factors which influence consumer spending and choice are new rules
or guidelines etc.

Conclusion:

Nestle is one of the most famous Brand available in the market. There is no doubt in that the
quality of the Nestle products is the best. It has variety of products and there is another
product that is going to be added which is the all new Buzz Energy Drink. Nestle company is
efficiently and smartly working in order to fulfil the satisfaction of their consumers and
customers. That the nestle company not only believes in good quality but so also working in
the best interest of their customers and providing best products in the most reasonable prices
not only to satisfy the needs of their customers so also to provide quality products.