Final project

Marketing Mangement

Submitted to: Sir Zeshan Shaukat
Submitted By: Ghulam jilani Zeshan Naseem Zeshan Munir Zeshan javed

UNIVERSITY OF MANAGEMENT AND TECHNOLOGY, LAHORE

“Cerelac is a reliable and innovative product and a symbol of commitment. Cerelac is an ideal infant starter and excellent source of energy”

TABLE OF CONTENTS 1. Executive summary ……..…………………………………….....4 2. Selection of Nestle cerelac……….……………………………....6 3. Nestle company intro…….………………………………………7 4. Nestle financial data……………………………………………..8 5. Nestle products………………..…………………………………9 6. Nestle Cerelac……………………………………………..….…10 7. Situation analysis………………………………..………………13 8. Market opportunities and issues…………………………………14 9. Objectives…… ……………………………………………….…15

10. Marketing strategy………………………………………………15 11. Target marketing…………………………………………………15 12. Positioning…… …………………………………………………16 13. Marketing Mix……....……………………………………………19 14. Product……… …………………………………………………..19 15. Price………………………………………………………………20 16. Promotion……………….……………………………………..…20 17. Place……………………….……………………………………..21 18. Conclusion………………………………………………….……20

EXECUTIVE SUMMARY
Business is a never ending race and in the fast running world of business, there is variety of products, ideas, setups and etc.. The organization that is chosen for our Marketing Plan is ‘NESTLE’.Since Nestle has a vast range of brands and products, so we are focusing on Nestle Cerelac.
This is our final project.it starts with a brief introduction of company ,and detailed marketing plan will be narrated under these heads.
Nestle has been serving worldwide with its excellence in product safety, quality and value. It provides many products which include dairy products, beverages, water, and infant dietetic and confectionary.. Their aim is to provide customer with best infant food on suitable prices make the product as convenient as possible. According to their claim that they provide the best food through out the world.
Here we have analysis of customers, competetors and company.. We will be seeing different strategies of the company. We will see the various market opertunities and issues can be used by them for improving their product. Our report includes a brief description of the companies objectives, and target market and positioning of Nestle to understand the criteria of Nestlé marketing for the specific product.
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This report also includes the marketing mix of the product has been discussed to reveal the significance of its product, pricing, promotion and placement.
In the end there has been explained conclusion to sum up this marketing plan.

Selection of Nestle Cerelac
Market worldwide especially into developing regions such as Asia, MEA and Latin America with large ever growing baby population and increasing income levels. China, Russia, Brazil India, Indonesia & Saudi Arabia are the most promising markets for as these countries have highest baby population and fastest growing middle class population.
We do not have as such varieties of baby foods here in Pakistan so we have selected the leading brand of food in the world that’s Nestlé. Here in Pakistan many people do not pay attention on their Childs’ needs and requirements and provide them unhealthy food. We have searched for the brand Nestlé Cerelac and now we are going to present thorough report on Nestlé Cerelac.
While milk remains the most important source of nutrition in the first year of baby’s life, every baby reaches the developmental stage when milk alone is not enough to sustain rapid growth and development.
Nestlé CERELAC is ideal as it is a nutritionally complete meal for every occasion and superior to porridges, maize meal and jars. Moms can feed CERELAC to babies at any time of the day because it is a baby food, not a breakfast cereal.

CERELAC compliments the milk feeds perfectly as it has the nutritional value of a fully balanced meal for baby, and tastes great too! By feeding your baby CERELAC you can be assured that your baby gets all the energy, protein, vitamins and minerals needed for optimum growth development - just add water!

Nestlé

Nestlé a Swiss company was founded in 1866 by Henri Nestlé.

Nestlé S.A. is a Swiss multinational nutritional, snack food, and health-related consumer goods company headquartered in Vevey, Switzerland. It is the largest food company in the world measured by revenues. 29 of Nestlé's brands have annual sales of over 1 billion Swiss francs (about $ 1.1 billion), including Nespresso, Nescafé, KitKat, Smarties, Nesquik, Stouffer's, Vittel, and Maggi. * Nestlé has around 450 factories. * Operates in 86 countries. * Employs around 328,000 people. * Nestlé invests around CHF 1.5 billion in Research and Development every year. * Nestlé manufactures around 10,000 different products and employs some 250,000 people. * Nestlé sells over a billion products every day. * Nestlé is more than just the largest food and beverage company in the world. Increasingly, * Nestlé is becoming the world’s leader in nutrition, health and wellness.

Financial data
Nestlé is the biggest food company in the world, with a market capitalization of roughly 191 billion Swiss francs, which is more than 200 billion U.S. dollars.
In 2011, consolidated sales were CHF 107.6 billion and net profit was CHF 10.43 billion. Research and development investment was CHF 2.02 billion * Sales by activity breakdown
27% from drinks
26% from dairy and food products
18% from ready-prepared dishes and ready-cooked dishes
12% from chocolate 11% from pet products
6% from pharmaceutical products
2% from baby milks * Sales by geographic area breakdown
32% from Europe
31% from Americas (26% from US)
16% from Asia
21% from rest of the world
Products
Nestlé has some 8,000 brands, with a wide range of products across a number of markets. Nestlé's brands include:
Coffee and tea
Bottled water
Milkshakes and other beverages
Chocolate and confectionery
Performance and healthcare nutrition
Ice cream
Breakfast cereals
Baby food
Seasonings, soups and sauces (Nestlé Professional)
Frozen and refrigerated foods
Pet food
Pharmaceutical products and active cosmetics (controlled by joint ventures with L'Oréal)

NESTLÉ IN PAKISTAN
Nestlé came to Pakistan in 1989, before 1989 there was a whole seller of Nestlé in
Karachi named “Sultan Chawala”. In 1992 Nestlé made a Joint Venture with “MilkPak
Ltd.” And named as “Nestlé MilkPak Ltd”

Selected product of Nestle Pakistan

We have choosen Cerelac,since it has 4 stages in different flavours.

Product Description

Nestle Cerelac Infant Cereal wheat with Milk Stage 1 is an ideal infant cereal starter which has richness of milk. It helps in bringing baby to semi solid food level. It is supple and has enhanced formula for digestive system of infants above six months. Their body requires nutrition for healthy growth which needs to be attained from various nutrients which milk alone cannot offer.
Nestle Cerelac is a highly nutritious, easily digested instant cereal, containing milk powder. An excellent source of energy with complex carbohydrates that are enriched with key nutrients suitable for baby’s little tummy. It also provides essential nutrients including vitamins and minerals. Such minerals include calcium to build healthy bones and teeth, and iron, which is required to generate red blood cells.
Cerelac packs in all the necessary baby nutrition factors and serves as a complimentary meal for babies above 6 months. This is because, after the age of 4, a baby's body requires more fuel and that can be supplied with Cerelac to meet up the nutritional requirements of the growing baby.

Cerelac Offered in:
Cerelac come in a range of seven varieties of baby food products which are as follows: * Cerelac Rice * Cerelac Wheat * Cerelac Wheat - apple * Cerelac Wheat - honey * Cerelac Wheat - banana * Cerelac Wheat - 3- fruits * Cerelac Wheat - 4 – Vegetables
Nestlé Cerelac:
BL Bifidus together with the combination of iron, zinc, vitamin A & vitamin C nutrients have been shown to help strengthen your child’s natural defenses day by day.
Infant Cereal Rice & Milk
Nestlé CERELAC Infant Cereals Stage 1 makes it easier for you to gradually introduce solid food to your child.
Infant Cereal Brown Rice
The mild tastes of Nestlé CERELAC Infant Cereals Stage 1 make for a gentle move from a milk-only diet.
Infant Cereal Rice & Soya
Nestlé CERELAC Infant Cereals Stage 1 helps you to ensure that your child has a varied and nutritious diet.
Infant Cereal Rice & Mixed Fruits
Nestlé CERELAC Infant Cereals Stage 2 introduces more new tastes to help develop your little one's taste buds.
Infant Cereal Rice & Mixed Vegetables
Nestlé CERELAC Infant Cereals Stage 2 – another step forward in your little one's journey of nutritional discoveries.
Infant Cereals Wheat & Honey
After 6 months, your child is ready to discover new tastes. His taste buds can differentiate between foods.
Cerelac Oats, Wheat & Prunes
Between 8-11 months of age, babies need more than just nutritional value in food.
Infant Cereal Rice & Chicken
Nestlé CERELAC Infant Cereals Stage 3 has richer tastes and textures to suit your child's chewing and swallowing abilities.
Infant Cereal Wheat & Ikan Bilis
Let your child explore different taste & texture
Toddler Cereals Honey Joy
Nutritionally tailored for children 1 year and above, Nestle CERELAC Toddler Cereals Honey Joy provides wholesome goodness of wheat, corn flakes and honey.
Toddler Cereals BL Multi Grain & Mixed Fruits
A complete meal everyday, Nestlé CERELAC Toddler Cereals BL Multi Grain & Mixed Fruits is suitable for children 1 year and above. It provides wholesome nutrition of whole grain and real fruit bits.
Toddler Cereals BL Multi Grain & Garden Vegetables
Nestle CERELAC Toddler Cereals BL Multi Grain & Garden Vegetables is suitable for children 1 year and above. It is packed with the right proportion of selected ingredients in dense volumes which are suitable for their growing years.

SITUATIONAL ANALYSIS
Customers
As it is narrated earlier that Cerelac is a product of infants,And infants have no any ability to walk and purchase by themselves,So the customers of cerelac are the mothers of age 18 to 35 of urban areas and are educated
They are health conscious and food that is not only fruitful but also is easy to prepare and carry , cerelac is very easy to use, what to do is just add water in cerelac
Competoters
At present,as for as Pakistani market is concern Nestle has no any competitor,neither local nore international brand is available in such a vast range and stages.
Company
Although it has to be written here but we have started our marketing plan with a detail analysis of Nestle company.

Market opertunity and issues

Market Opportunities ---------------------To Capture
Market Issues ----------------------To defend on

Oppertunities
Nestle in Pakistan has a great opportunity for expanding its markets because in Pakistan there is a large ready market of food and beverages due to trends of eating and The increasing .It also has opportunities largely in China and India as well. Through proper marketing research Nestlé can cash on to these opportunities.
Issues
Nestle is facing the threats by worldwide community due to its violation of international marketing standards. Many conferences and campaigns have been held against Nestlé in this regard which can damage the name and trust of its customers.
Another threat is due to the increasing popularity of its competitor OLPERS in local and international markets.

Objectives
Marketing objectives are compatible with the overall corporate objectives of nestle. Company’s objective is to be the world’s largest and best branded food manufacturer while insuring that nestle name is synonymous with the products of the highest quality.
Marketing Stretegy
Nestle SA expands globally either through its own brand or the acquisition of national brands, considering this face it seems a critical time for Nestle SA to expand through a National brand .
Target market
Bases for Segmentation:
To occupy a clear distinctive and desirable place related to competing baby foods in the minds of target customers Nestlé Cerelac segments its market on following bases: * Geographic Segmentation * Demographic Segmentation * Psychographic Segmentation * Behavioral Segmentation
Geographic Segmentation:
Cerelac segments its market geographically on divisional basis. They divide each division in different zones and every distributer is restricted to sale its products only in his own zone. E.g. Lahore is divided in to five zones like east, west, south, north and south west.
Demographic Segmentation: Age:
They have segmented the market from early age infants to 5 years children and have launched different flavors and kinds of Cerelac according to their requirements. On the other hand Nestlé Cerelac has made this product for infants but has actually targeted the mothers who can either be very old or young. Mothers are very conscious about their children health and want the best for them.
Income Level:
People belonging to lower income groups cannot afford to buy readymade baby foods so Nestlé will target that segment whose income puts them in the upper middle and higher income groups.
Social Stratification:
Buyers are divided into different groups based on social class and life style. Many consumers live a simple life and belong to lower class; they don’t spend on buying artificial food for their children and people belong to middle class or upper class can definitely opt for this.

Psychographic Segmentation:
Class consciousness:
Nestlé has also segmented the specific class of mothers who don’t want to give breast feed to their children so Cerelac is the most preferable and best nourishing food for infants as proxy of chest food.
Level of Education:
Nestlé makes promotional strategies keeping in view the customer level of education. If the % of education is high in a country then through ads people can be made well aware of their product and can convey their message easily. Promotion and education have a direct relationship.
Behavioral Segmentation:
Benefits:
Buyers are classified according to the benefits they seek. Nestlé Cerelac has launched different flavors and types of Cerelac according to benefits that are required by the children of different stages of early life.
Segment needs:
Good nutrition is essential for the growth and development that occurs during an infant’s first year of life. When developing infants are fed the appropriate types and amounts of foods, their health is promoted. Positive and supportive feeding attitudes and techniques demonstrated by the caregiver help infants develop healthy attitudes toward foods, themselves, and others.

During the first few years of life, the body grows at a very fast rate. The baby weighing on the average about 3 kg. At birth doubles its weight by 6 months. The weight touches 9 kg. By 1 year. Infants and children are very active and they spend a lot of energy. They therefore, need large amounts of body building and energy-giving foods rich in proteins and calories.

Segment Growth Potential:
Nestle, sees a healthy growth potential for its food products meeting specific dietary needs of changing demands of the consumers that normal diets fail to do.
Mr. Patrice Bula, Nestlé’s global sales and marketing head, said, “With the impact of economic growth and changing lifestyles in India, the need for science-based nutrition in products that we consume everyday is going to be almost critical for a good life. We firmly believe that sales and marketing is about responsible engagement with consumers. I have seen some very good innovations and renovations in advertising communication, product development and in expanding the distribution network.”
Nestlé besides milk and yoghurt, Nestle markets popular products like Maggi noodles, Nescafe and Kit Kat chocolates in world. The company is observing its 100 years more in different countries.
Size of the Segment:
Infants (0-5), mothers (18-45).
Differentiation strategy:
Our range is highly hygienic and has excellent strength that prevents the food from dust, moisture and other contaminants, thereby increases shelf life. Further, our range is available in different finishes and at most affordable rates to the clients. 1. Nestlé Cerelac has strong brand image on the basis of quality. 2. Nestlé Cerelac always segments the exact customers. 3. Care pharmacy does not believe that till now any one of Nestlé competitors are successful to compete on the basis of quality. 4. Nestlé Cerelac has positioned among people as health provider brand for infants.

Target Market Profile: Geographic dispersion | Urban, suburban | Family life cycle | Full nest, single parents | Social Stratification | Upper upper class, lower upper class, upper middle class | Age segments | Infants(0-5), mothers (18-45) | Income | Average, above average (50 k to 100 k per month) |

Positioning Strategy:
We are familiar with the name, Cerelac and not only familiar but consumers too. Whenever some one (parents) thinks about the product in baby food category for their babies, the first and the last name comes in their mind is Cerelac. Why Nestle Cerelac is so popular and authentic brand, the reason is Nestle that communicates itself as 'Good food, good life'. Cerelac is a name of quality and best food for babies and the positioning statement of Cerelac also tells the same as, 'best start to a healthier future'

Nestlé does positioning on several bases: 1) On product attributes 2) On needs / benefits 3) On Usage occasion 4) For Classes of users 5) Against competition 6) Away from competitors

MARKETING MIX

Product:
Sizes
It is available in 3 sizes; 350g and 175 g box packaging and a 25g sachet for customer convenience.
Shape & Color
The shape and color are very attractive for the customers.
Labeling and packaging
The labeling and packaging includes Nestlé brand and logo. The packaging includes an expiry date and time along with manufacturing date. Second part of labeling includes the quantity of product in grams along with ingredients and contents.
Competitive Advantage
It is the only popular and quality baby food in Pakistan. Its unique `stay fresh seal and a long lasting shelf life gives the brand a formidable competitive advantage. Not only it is easy to make but also it is completely made considering the digest system and requirement for infants on different stages of age. The factors that make Cerelac successful is quality and superior nutritional value.
Price:

Nestle Cerelac wheet 175 grm Rs120/-
Nestle Cerelac wheet 350 grm Rs212/-
Nestle Cerelac rice 175 grm Rs120/-
Nestle Cerelac rice 350 grm Rs212/-
Nestle Cerelac yougart 175 grm Rs145/-
Nestle Cerelac mango 175 grm Rs145/-
Nestle Cerelac banana 175 grm Rs145/-
Nestle Cerelac 3 fruit 175 grm Rs135/-
Nestle Cerelac 3 fruit 350 grm Rs225/-
Nestle Cerelac apple 175 grm Rs142/-

Promotion:
Nestle has adopted the channels for promotion through TV, News papers, magazines Doctors and hoardings etc.

•Advertisement budget of the company

Nestle has preplanned to start the financial year but it is kept secret by the company.

•Share of promotion

Share of promotion in over all projects varies every year. Usually it is 40% of the product.

•Nature of marketing

The product is marketed aggressively in the market.

Placement:
Outlets for Product Located
Nestlé Cerelac is available all over in Pakistan regardless of big and small cities.
Direct Sales
It is not sold directly to the customers because of the extensive consumer groups. It is the reason they sale the product through distributers for easiness of the company.
Warehousing Facilities
Nestlé Cerelac has its own warehouses for the storage of products as well as it also has hired some warehouses.
Transportation Modes
Usually Nestlé mode of transportation is road which is also used for Cerelac.

Conclusion
Nestle is today the world’s largest food and beverage company with its mission to provide healthier lifestyle. It has launched many products in baby food line in Pakistan the majority of which are popular and among the market leaders. Nestle is installing new plants and importing latest technologies to improve. Moreover, innovation is one of its greatest strengths so it has a bright future in Pakistan.

Nestle must state in writing that it accepts that the international code and the subsequent relevant World Health Assembly Resolutions are minimum requirements for every country. Nestle must state in writing that it will make required changes to bring its Baby Food Marketing policy and practice into line with International Code and Resolutions.

References: www.nestle.com wikipedia.org/wiki/Nestlé www.Google.com http://www.scribd.com
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