CB Final)

Mark
et of Nestle’ Juices
Market of Nestle’ Juices

Submitted By:
Saman Tariq 07l-0386
Bina Waheed 07l-0414
Farheen Farwa 07l-0421
Zawar Nadeem 07l-0381
Jawad Kamran 07l-0481
Submitted to:
Osama J Butt
Instructor; Consumer Behavior.
Submitted on:
21st April, 2009
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Table of Contents
1. Introduction-------------------------------------- 3
2. Product Line------------------------------------- 4
3. Nestle Juices------------------------------------- 6
4. Market Structure--------------------------------- 12
5. Market Mix--------------------------------------- 16
6. Target Market------------------------------------ 30
7. Consumer Decision Making Process----------31
8. Recommendations------------------------------- 32
9. Conclusion
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10. Questionaire
Executive Summary
This is formal report regarding Nestlé juices in which we have covered comprehensively
all the major categories of Nestle juices. It starts with an introduction about Nestlé
followed by its history. After elaborating the Nestlé’s product line, this report mainly
focuses on one of its product which is “Nestle Juices”. This study further explains
detailed expansion of nestle juices and its product line. It goes on further discussing the
product life cycle of nestle juices and highlights the current market structure as well as its
major competitors. It explains the market share of nestle and after comparing the prices
of nestle juice with its competitors, it elaborates the strategy which nestle has adopted in
order to succeed in the markets. This report also includes the marketing mix of Nestle
juices .We have briefly described the strategies regarding marketing mix. In this report
we used marketing tools in order to reveal the significance of its pricing and product
activities along with the SWOT Analysis of the organization. It gives a detail about those
strategies which differentiate nestle from its competitors. This report also elaborates
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about the target market and consumer decision making process. It ends with some
recommendations about the product.
1. Introduction
The history of this company began over 130 years ago when Henri Nestle introduced a
product under the name of Farine Lactee Nestle, in 1867. The aggressive marketing done
for this milk-based baby food soon expanded their business both in United States and
Europe. Meanwhile, the Anglo-Swiss Condensed Milk Company was established in
Cham by Charles A. and George Page brothers. These two companies soon became each
others direct competitors when the Anglo-Swiss Company also added milk-based baby
food to its products. However, in 1905 both the companies merged under the name Nestle
and Anglo Condensed Milk Company.
The company expanded its factories to Germany and Spain. World War I proved to be
extremely beneficial as the demand for dairy products had credibly increased. After the
war ended, consumers again switched to fresh milk. To this scenario Nestle responded by
introducing new products, of these the most important product being chocolate. World
War II again caused a big dent in Nestle’s profits. This time Nestle came up with
Nescafe, which soon became popular amongst the army. By the time World War II
ended, Nestle started to grow rapidly. With time, it has added many products to its chain,
which includes soups, frozen products, baby food, yogurt, mineral water, juices and other
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food products. It has merged with many companies, amongst which were L’oreal and
Maggi.
Today Nestle is a world-wide known company for food and beverages. Their motto is
‘Good food is necessary for a good life.’ Nestle itself means ‘to nest’. This nest is also
used in its logo, which signifies nourishment. It also shows the love and care of a family
that the company keeps in mind while dealing with their customers.
2. Nestle Product Line
Nestle has a large product line. Including;
 Bottled water
 Beverages
 Baby Food
 Prepared meals
 Chocolates
 Milk and dairy products
Some of its key products have been described as follows;
2.1 Nestle Bottled Water:
In 1998, Nestle took over Italy’s leading bottled water producer, named as Sanpellegrino.
Nestle then launched its first bottled water under the brand name of Nestle Pure Life. In
2004, it expanded to Asia and just a year later it launched its mineral water to Africa as
well. Now Nestle Pure Life can be found in 21 countries. Nestle bottled water is the
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leading mineral water of today. Nestle takes special care of the packaging when it come
to water bottles. Besides being used for protection, Nestle has developed its packaging
keeping several other uses in mind. It is also used for product identification, consumer
information, and so on. Considering the growing competition in today’s market, Nestle
always tries to provide the packaging that meets the ecological challenges.
2.2 Nestle KIT KAT
One of Nestle’s main products has always been chocolate, which was introduced after
World War I. One of the most famous chocolates produced by Nestle now is KIT KAT.
Originally, the chocolate was created by Rowntree Limited. Afterwards there was a
global confection of the product and now it is being produced by Nestle. KIT KAT is
famous for its finger bars, which vary with the size of the chocolate. The slogan of KIT
KAT “Have a break, have a KIT KAT” is known at a world-wide level.
2.3 NIDO
Another very popular brand of Nestle is NIDO. NIDO is powder milk, rich in calcium
and vitamins. The target market of NIDO includes growing children from the age of
three. Hence, their tag line “Nutritious milk for growing kids.’ The direct competitors
Nestle faces for this brand is ordinary milk, and milk based beverages. However, with the
positioning of NIDO, it seems it is only competing with the later. Strength of this brand
of Nestle is that NIDO contains 25 essential ingredients which are required by the
growing children.
2.4 Maggi
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After merging the two companies, Maggi comes under instant noodles of Nestle now.
Maggi 2-minutes noodles is a snack food brand, being prepared in four different flavors
namely: Tomato, Masaala, Chicken and Curry. In 2000, Maggi introduced a new flavor,
Vegetable Atta noodles. This turned out to be a successful attempt to position noodles as
a healthy snack. Under this brand name, Maggi has also launched sauce, soups, ketchups
and other variants. This helped increase the overall brand equity of Maggi as well as
strengthened the brand name. Now Maggi is a well reputed and established brand in
various countries, including Malaysia, Nepal, South Africa, Singapore, New Zealand,
Australia and India.
3. Nestle’ Juices
Above given were a few key products of Nestle’. However this report mainly focuses on
one of its products which is Nestle Juices
3.1 Introduction
Nestle’ is the initiator in the market of Juices in Pakistan. In 1996 it started with its
Orange juice and later extended the business into how it stands today in the market.
3.2 Dynamic Expansion of Nestle Juices
A brand, FROST was introduced in 1986 which succeeded in getting the largest share of
the countrywide market. It was positioned as a cold drink and alternate to cola drinks, its
strength lies in the convenience attached to its usage as it is available in disposable packs.
After getting good consumer response to Nestle Orange Juice that was launched in 1996,
the category of NESTLE juices was expanded with the introduction of Mango in the year
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2000 which was modified and orange-mango was introduced separately. Then this
category was further expanded by introducing flavors like Apple, Red grape, Pineapple,
Chaunsa and Guava. These extensions have further strengthened the position of Nestle as
leader in drinks market.
3.3 Flavors
Nestle Juices are available in eight flavours.
3.3.1. Orange
(taken from google images)
Oranges are in demand not only for their divine juicy flavor but equally celebrated for
their health benefits. Oranges are good for health. They are naturally low in calories, and
an excellent source of Vitamin C. NESTLE Orange Juice has no added sugar. Having
Orange juice everyday is a great way of strengthening the body resistance against
infections and diseases and maintaining a healthy lifestyle.
3.3.2. Apple
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Apples have no fat and are cholesterol free. Nestle Clear Apple Nectar is made from the
finest Apples and is 100% clear. Nestle Clear Apple Nectar has yellowish-brown color.
3.3.3. Red Grape
Grapes also called the ‘queen of fruits’ are known for their great internal body cleansing
properties. They are a good source of Potassium that plays an important role in proper
heart functioning by regulating blood pressure and heart beat.
3.3.4. Pineapple
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Pineapples are good source of Vitamin C, an antioxidant that helps fight against free
radicals. Nestle Pineapple Nectar brings the exotic taste of pineapples with a refreshing
tropical flavor.
3.3.5. Chaunsa
Nestle Chaunsa Nectar fortified with Vitamin C is a delightful flavor to get refreshed. It
has no added sugar! It is also good for health.
3.3.6. Guava
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Nestle Guava Nectar fortified with Vitamin A. It is also good for health and when
consumer feel very tired than they consume guava in order to enhance vitamins in their
body.
3.3.7. Mango
Nestle Mango juice rich with Vitamin B
3.3.8. Mango Orange
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Nestle mango orange juice has mixed flavor of mango and orange. Oranges are good
source of vitamin C.
3.4 Product Line Extension
NESTLE instant drinks were introduced in the market as a line extension to cold drinks,
this line includes two flavors
o NESTLE Limo (Lemon)
o NESTLE Malta (Orange)
These are in powdered form and are available in 25g single serve sachets and 500g jars
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They were introduced in Pakistan with the local names of Lemon and Orange to appeal
customers.
3.5 Product Life Cycle
Nestle juices are currently in growth stage.
Following are the indicators of this conclusion that we have mentioned;
 Sales have increased significantly over the past few years and are still increasing.
 More people are becoming aware of this product.
 New flavors are still being added in the product line. Recently Nestle’ launched
its guava flavor.
 In order to fulfill the needs of their customers the supply of juices has been
increased to almost five times as compared to the time when juices were
launched.
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3.6 Sales Data
The sales growth of Nestle’ juices has been about 20% per year during the last few years.
And despite of the economic crisis the trends have not changed much.
4. Market Structure
Nestle’ is operating in a monopolistically competitive market.
4.1 Competitors of Nestle Juices
Every organization faces competition in a competitive market. Nestlé is a multinational
company. It has competitors in a global market and in a local market. The main
competitors of Nestlé juices in Pakistan are as follows
• Minute maid (Pulpy Orange)
• Shezan
Pulpy orange:
Minute maid pulpy orange is a good competitor of nestle juices. Coca Cola had
introduced pulpy orange. Pulpy orange has good quality but it is more expensive than
nestle juices. But pulpy orange does not have a big market share because pulpy orange is
available only in one flavor and their target customers are rich class
Shezan:
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Shezan is a strong competitor of nestle juices. It is old and established local brand in
Pakistan. Although it has more than six flavors and it is less expensive than nestle but
people prefer nestle juices over shezan. The quality of shezan is not comparable with
nestle.
4.1.1. Market Share
Market Share
12%
10% Nestle
78% Pulpy Orange
Shezan
The above graph shows the market share of nestle, pulpy orange and shezan. In this graph
nestle has 78% of market share whereas pulpy orange has 10% and shezan has 12 %
market share.
Nestle have high market share as compared to other because they provide best quality
juices. As shown by our research. Their market share is 78% and marketing penetration is
32%.
4.1.2. Price Comparisons
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This graph shows the price comparison among nestle, shezan and pulpy orange. The 200
ml of nestle juice is available at the price of 18 rupees where as 1 liter of nestle juices is
of 75 rupees.
The shezan 250 ml pack is available at10 rupees and 1 liter of shezan juices is available
at price of 65 rupees on the other hand 300 ml pack of pulpy orange is available at price
of 35 rupees and 1 liter of pulpy orange is available at the price of 95 rupees. Instead of
high price level people prefers nestle because of their quality that’s why nestle have high
market share than others.
4.2 Competitive Strategy
The hallmark of the nestle′ is the quality of the products which the company offers. Many
companies compete with nestle on the basis of their quality. Nestle provides best quality
product and other companies try to compete nestle by lowering their price level.
4.3 Competitive Edge
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Nestlé’s competitive advantage is its brand name and high the high quality that it
provides to its customers. Nestle’ is the leading and the most popular brand in the market
of juices because of the following reasons;
• It provides its customers with a variety that no other brand offers
• Nestle’ juices are pure nectars and not regular flavored juices
• The trust that customers have in the quality and consistency of the extent to which
Nestle’ juices meet their expectations.
The companies all over the world get some competitive edge based on some features
which other companies don’t have. In Pakistan nestle has their Competitive edge based
on these Strategies:
 Product Differentiation
 Customer Oriented
4.3.1. Product Differentiation
Nestle is using the product differentiation strategy by providing the superior quality
products. Consumer prefers nestle juices because of their superior quality. No other juice
company can compete nestle on the basis of quality.
4.3.2. Customer Oriented
Nestlé is a customer and profit oriented organization rather than system and strategy
oriented. Customer satisfaction is the focal point for the company. They provide hygienic
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products to their customers. Products are also verified by health and safety measures and
international quality standards. Their main focus is to keep the customers loyal.
5. Marketing Mix
The four P’s in marketing which are namely product, price, place and promotion provide
a ground to the marketing manager to control and set strategies that can make the product
a hit or if poorly handled can also make the product a failure. To deeply analyze the
market of Nestle’ juices and how things function in it, it is important to look into its
marketing mix strategies one by one.
Product
5.1 Product
Product is considered to be the core element in the marketing mix, as it reflects
customer’s needs, desires and requirements, and satisfies those expectations a step rather
ahead of the competition. A group of closely related products that function similarly, sold
to same customer groups, marketed through same types of outlets or falling within given
price ranges constitute a Product line. An integrated set of such product lines offered by a
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company forms a Product mix, which usually consists of four dimensions i:e width,
length, depth and consistency. With the decreasing product life cycles and ever-
increasing global competition, product design and development is playing a vital role in
the successful creation and implementation of a well-blended product mix.
5.1.1 SWOT Analysis
Evaluating a company’s internal and external factors, which influence the company’s
functioning and strategic planning processes in one way or another, plays a very vital role
in supporting the company’s goal for achievement. For this purpose is conducted the
SWOT analysis.
When analyzed thoroughly Nestle Juices has the following Strengths, Weaknesses,
opportunities and threats
5.1.1.1 Strengths
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• Nestlé’s biggest strength is its brand name which is synonymous to high quality
and standard products
• Being a multi national company, Nestle’ has the power to attract more customers
than any other local company
• Its major strength is its highly qualified employees. Nestle’ invests highly in the
training of its employees
• Having no other close competitor in the market is also Nestlé’s strength as Nestle
still stands the single most popular brand in the market for juices.
• Being the market initiator is a strength in itself as Nestle’ enjoys a place in the
market of juices where it has the best technical know-how
• Highly satisfied and loyal customers are in fact Nestlé’s major strength.
• Customer responsiveness and trust in the company
• Innovation- Nestle is nearly almost the initiator to introduce a new taste in the
market which has not been introduced by any other company.
5.1.1.2 Weaknesses
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• Nestle juices are pure nectars rather flavored juices and so they face higher
costs compared to other juices competing in the market and thus Nestle facing
a hard time in keeping the price up hence ignoring the C and D Social
economic classes which make the biggest chunk of our population.
• There is not much margins for retailers to prefer its sales
• The distribution cost is high as compared to the competition in the local
market
• Every one in the management is independent and so this structure causes a lot
of conflicts.
5.1.1.3 Opportunities
• According to the brand manager of Nestle’ juices, thirst itself is the biggest
opportunity in our country. There is a lot of scope in Pakistan to create brand
awareness and thus increasing sales for juices
• They have an opportunity to expand or capture the market by adding its product
line
• Company is trying to open stores in North Zone and South zone of country
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5.1.1.4 Threats
• New competitors adding the market is a threat to Nestle’ juices.
• Increasing political instability in the country
• The recent economic melt-down causing low employee motivation and
performance
• Coke- they can come up with pure juices
5.1.2 BCG Matrix
BCG is a growth-share matrix which divides companies into four categories depending
upon their share in the market and their growth rates. These four categories are;
• Star- high market share, high growth rate
• Question marks- firms that are growing rapidly but due to low market share are
unable to maintain high cash inflows
• Cash cows- firms that have a high market share but a low growth rate, they extract
high profits and revenues but invest as little cash as possible
• Dogs- firms that have neither a good growth nor a good market share
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When analyzed Nestle’ juices according to the BCG matrix they are found to be the
“STARS” because of matching the following characteristics of STAR group
• Stars have huge amounts of cash inflows due to their high market share and sales
revenue
• Stars have huge cash outflows because they have high growth and they invest
massive amount of money in their innovation and growth process.
5.1.3 Product Positioning
The survey that we conducted during our research on Nestle’ juices gave the following
results on brand positioning;
Nestle juices are positioned in the minds of its customers as;
• A high quality and high standard product
• A status symbol
• A unique product in the market
• Purest among all other competitors
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5.1.4 Perceptual Map
Following is the perceptual map drawn between the most popular drinks that are
traded in the market
5.1.5 Product Classification
Products are generally classified on the basis of characteristics and use
1. On the basis of durability and tangibility Nestle’ juices are non-durable as they are
tangible goods which are quickly consumed, have one purpose that is to fulfill the
need of thirst and are expired or worn out after a certain time period.
2. On the basis of use Nestle juices are consumer goods. They are of course used for
business purposes as well i-e in retailing but mainly they are produced for end
consumers. Now consumer goods are further classified into; convenience goods,
shopping goods, specialty goods and unsought goods. Nestle’ juices are convenience
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goods i-e regularly purchased goods bought without much though and with minimum
shopping effort.
5.1.6 Product differentiation
Nestle’ juices are differentiated in the market on the basis of;
• Features- taste
• Performance quality
• Conformance quality- consistency
• Form- different packaging style
5.1.7 Packaging
There are two levels of Packaging used by Nestle juices;
Primary Package- The direct container in which the juice is packed
Shipping Package- Nestle’ juices do not use a secondary package and directly ship the
juices in the primary package to the retailers.
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5.1.8 Labeling
On the package of Nestle’ juices two kinds of labeling is being done;
• Brand Label- The name of Nestle’ imprinted on the primary package of juices
• Descriptive Label- The notion “100%” is a descriptive label that Nestle’ juice’s
primary package attributes to itself.
Price
5.2 Price
5.2.1 Pricing Decision:
Different companies have different ways of deciding the prices. In some companies price
is decided by the Boss, this is a common practice in small companies, in other companies
price is decided by the brand manager and in some they have a separate pricing
department. Nestle’ juices does not have a separate pricing department. Product manager
decides the price but it is always approved by the boss.
5.2.2 Setting the Price
The band manager of Nestle identified the following steps that are undertaken before
setting a price;
• Selecting a pricing objective
• Determining demand
• Estimating costs
• Analyzing competitors cost
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• Selecting a pricing method
• Selecting a final price
5.2.2.1. Selecting a pricing objective
The objective that Nestle’ undertakes before deciding on the price is “Product Quality
Leadership”, a phenomena in which price is decided in order to position the product as
the quality leader is the market. Through this objective high quality is signaled through
high price.
5.2.2.2 Determining Demand
Bottom up method is used to collect data in order to estimate the demand which is as
follows;
The data is collected from the market by individual sales force, this data is then given to
regional office which verifies it and then the data is given to zonal office and from there
after passing through many stages for verification and addition it reaches head office and
then to the human resource department for decision making and analysis. The demand of
Nestlé’ juice is perceived to be elastic that is a change in the price of the Juices has a
significant impact on its demand.
5.2.2.3 Estimating Costs
Nestle estimates the price of its juices by including six different costs which the
Company incurs during production
• Plant cost
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• Transit cost
• Labor cost
• Inventory cost
• Operating cost
• Depreciation cost
• Raw material cost (fruits)
• Manufacturing overhead cost
For internal accounting purposes ABC costing process is used to find out how profitable
a product line is.
5.2.2.4 Selecting a pricing method
Two pricing methods are used;
• Cost-plus pricing- the main pricing method that Nestle’ uses. Price is set by
considering the cost which has been incurred and the mark up that the company
wishes to keep by selling each unit of a product
• Another pricing method which is used is “Competition based” pricing method,
according to which price is set by considering prices which are being offered by
other competitors. Although Nestle’ juice does not face a tough competition in the
market as there is no close competitor but still they have to take this into
consideration because the fact that Pakistan is a poor economy cannot be ignored
and with people having low purchasing power, although Nestle targets A and B
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social economic, Nestle needs to cater the needs of people by offering a price
which does not compel them to switch to other affordable brands.
5.2.2.5 Selecting a final price
After going through all these stages Nestle’ juices are available in the market at following
prices
Flavor 1000 ml 200ml

Orange 70 18
Apple 70 18
Pine Apple 75 18
Mango 65 18
Mango-Orange 70 18
Red Grapes 85 18
Chaunsa 75 18
Guava 85 18
5.2.3 Brand Equity
Brand equity of Nestle’ juices can be calculated as follows;
Other juices are available on an average price of Rs. 10 in the market but Nestle is
available at Rs 18. Thus a consumer is wiling to pay 8(18-10) Rupees extra for
consuming Nestle which is its brand equity.
Place
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5.3 Place
Place mix comprises of distribution network, channel management, transportation
handling and inventory which are held by company’s distributors and dealers. The
objective of an effective place mix is to ensure that products are available in adequate
quantities at convenient locations and at all times when customer wants to buy them. To
bring this place mix into practice a whole supply chain comes into action which usually
consists of the manufacturer and other channel intermediaries like wholesalers , retailers
and franchisers
In case of FMCGs i.e. fast moving consumer goods such as juices, it has been found that
a consumer’s buying habits are greatly affected at the place of purchasing. Hence, what
the promoters of Nestle do is they place juices at the entrance from where they are easy to
spot. The attention can create a need even if the customers had not actually planned on
buying the juice.
Secondly, the retailers are paid to promote Nestle juices. Retailers are people at the end
of the business chain who directly sell products to the ultimate customers. In this case the
salesman would be the retailer. A customer’s opinion is very likely to be effected by a
retailer. Imagine a customer entering a store and the sales person telling him/her that
Nestle juices are more healthy and fresh as compared to other brands. What impact do
you think this will have on the customer? The most likely outcome would be that s/he is
going to try Nestle at least once. Following this strategy has a credible impact on the
sales.
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Both “Pull” and “Push” strategies are used to promote sales.
Juices reach the market in the following way;
After manufacturing Juices are placed in the warehouses maintained by the company and
then they are distributed to distributors in each zone who distributes them further in the
market, which means only one level marketing channel is used in the delivery of Nestle’
juices to the end consumers.
Moreover, they are placed on the eye-level. The 200ml packs are put in chillers given to
retailers.
Neither extensive nor exclusive, rather selective distribution is undertaken for Nestle’
juices. They are distributed to the retail outlets which are most visited by people from A
and B Social economic class.
Promotion
5.4 Promotion
The measure of attractive sales for the product of any company depends upon the
effective Promotional Mix adopted by the company. There are six major promotional
elements which make the promotional mix. They are – Advertising, Personal Selling,
Direct Marketing, Internet and Online Marketing, Sales Promotion and Publicity.
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A blend of all the promotional strategies for example billboards, point of purchase and
outdoor strategies are used to market Nestle’ juices. The budget for marketing Nestle’
juices are 2.2 billion rupees this year.
The most basic definition of advertising is to communicate with the current or potential
customers through a paid and identified sponsor. Nestle mostly uses billboards and neon
signs for the advertising of juices here in Pakistan. Billboards are thought to be more
attention grabbing and are more likely to be noticed. T.V. commercials, on the other,
hand are not used as they are easier to avoid; one can simply switch the channel. This
kind of advertisement has two major drawbacks:
1. It is more expensive, and
2. less attention grabbing
Nestle is already low on budget in this particular category of product. Therefore, no
extravagant spending is done by the promotion department. Nestle; however, did promote
its Orange Juice through T.V. commercials when it was in crisis. As a result, its sales
improved credibly. Its new flavor, guava is going through the same crisis. The same
strategy, if followed in this case, will also produce beneficial result.
6. Target Market
Based on research and recent trends, the primary target market for Nestle Juices is the
upper and middle class.
Demographic segmentation bases are appropriate for target market, especially age,
gender, and income. Nestle juices does not targets a particular gender and thus it is for
both males and females. The benefits, for all users, are that it is a healthy product and can
provide needed vitamins and minerals.
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Target market with respect to age is 25-35 years and with respect to income is social
economic class A and B, to be more precise.
The prices of Nestle juices are usually high because they don’t compromise on their
quality and so it is affordable by people who belong to A and B social class.
Nestle juices can also be defined in terms of Psychographic segmentation. They support a
healthy and happy lifestyle.
Some variables can also be considered in the behavioral segmentation of Nestle juices.
They can be used on regular basis or even at special occasions. It can be a complete
snack, and because all drinks contain a pound of fruit, it is an easy, on-the-go snack that
provides most of a person’s daily fruit intake.
The loyalty status of this product is quite strong. People like it as a brand as it provides
them with good quality and nestle also cares for them. Nestlé's business objective is to
manufacture and market the Company's products in such a way as to create value that can
be sustained over the long term for shareholders, employees, consumers, and business
partners.
6.1 Potential Market
Nestle’ juices have the capacity and ability to cater the market of Afghanistan but they
have not done so. Our interview with the Brand manager provided us with this insight
that although the market of Afghanistan is not being catered presently by Nestle’ juices
but it is a potential market.
7. Consumer Decision Making Process
Behind the act of just “buying a product” is a mechanism called the consumer decision
making process. Consumers go through certain stages in order to buy a product.
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In case of Nestle Juices consumers go through the following stages;
1. Identifying the problem: When ever consumers feel thirsty they feel a desire to drink
something, most of the purchases done by the consumers of Nestle’ are done to fulfill this
desire. However many times Nestle’ juices are bought on an impulse. For example when
people who buy the monthly grocery for their house hold use, say that they buy family
packs of Nestle’ juices for their families and guests visiting their place.
2. Information Research: Consumers that engage in purchasing behavior for the first time
collect information about where and which products are available. Consumers that
already have a prior knowledge do not need to search for it.
3. Evaluating alternatives: Consumers evaluate the options that they have. In case of
Nestle’ juices consumers will evaluate all the options of juices, rather drinks in the
market that could satisfy their basic need for refreshment or thirst.
4. Purchase Decision: Consumers decide to buy with respect to their purchasing power.
This is evident that Nestlé’s target market is social economic class A and B. These juices
are available in stores that are most in access of the target market and are mostly
consumed by these people.
5. Post purchase: Nestle’ juices are products that are instantly consumed and so the post
purchase behavior is only evident through the action of re purchase by the consumers.
Consumers of Nestle’ are mostly loyal to the brand and do not switch between
alternatives. One they buy Nestle’, the company is sure the consumer is going to come
back.
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Model of the Motivation Process:-
This model highlights the motivation process. We can see that the “drive” toward
behavior will often end in the fulfillment of the need. The processes and effects of
previous learning tie strongly into choices made when the behavior is defined.
Unfulfilled Needs, Wants, and Desire:
Whenever consumers feel thirsty they feel a desire to drink something, which is
good for health and provide you
energy.
Tension:
Your thirst will give
you tension to get soething to
drink which gives you
satisfaction.
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Drive :
Your tension will drive you towards the market and then you search for the
alternatives.
Behavior:
While searching for the drink you will show your behavior that which thing will
fulfill your desired need? You search for juices and pick the Nestle after reading his
ingredients that it is 100% pure and provide you immediate energy. You drink it.
After drinking the Nestle juice you get what you want then this will lead to
achieving you goal.
Models of Classical Conditioning:
A behavioral learning theory according to which a stimulus is paired with another
stimulus that elicits a known response that serves to produce the same response when
used alone
For example:
Suppose you are in office and the time is about after noon you feel hungry and need
something which provides you the instant energy and you prefer Nestle juice and you
get satisfaction.
Here the unconditional stimuli is after noon and unconditional response is
salivation by Nestle juice.
Then you make it your habit to get it every time when you fell hungry you take the
Nestle juice and get your satisfaction.
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then it will become classical conditioning for you that when you feel hungry you get
Nestle juice and fulfill you need.
After repeated the conditional stimuli is after noon and conditional response is
salivation
ABC model
I. Affect:
The affect of the product on consumer’s mind.
II. Bahivour
It simply means that the bahivour of the consumer
III. Cognation
It simply means that what are the believes are true about the product.
8. Recommendations
1. A juice should be launched in competition with Pulpy Orange because it is the
product which is snatching the market share of Nestle juices, but the product
should be launched keeping in mind the competitive edge of Nestle juices being
pure.
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2. Nestle should launch an energy drink as it is the most growing emerging market
of beverages in Pakistan and there are still very few competitors present in this
market.
3. Nestle should adopt the strategy of co- branding to gain more market share.
4. Some juices should be launched to target lower middle class as 70% to 80% of
Pakistan’s population belongs to lower and middle class
5. Customer interaction centers should be made to promote customer friendly
relationship with the customers.
6. Television should be used to market juices because it is the most frequently
visited media by the younger as well as older generation these days.
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References:
• Butt Hammad. (2009). Personal interview.
• Kotler.P & Keller, K. L. (2006). Marketing Management. (Vol. 12). Dorling

Kindersley India Pvt limited: Pearson Education South Asia.
• Qayum Imran. (2009). Personal interview
• About us. (2009). Retrieved March 14, 2009 from nestle.pk:

www.nestle.pk
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Attached below is the questionnaire which we used in our surveys. The information we
gathered from this survey helped us a lot in deducing results which have been deduced in
the report.
Market for Nestle’ Juices
1) Your favorite juice brand?
a) Nestle
b) Shezan
c) Pulpy orange
(If u select A then fill question 2-7; if not, fill from 8-10)
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2) Categorize yourself according to your income status
(a) Upper
(b) Upper middle
(c) Middle
(d) Lower middle
(e) Lower
3) Are you satisfied with the prices?
a) Yes
b) No
4) Nestle is your favorite brand because
a) I am a nestle fan
b) I like the taste
c) Good for health
d) Has variety
e) Good quality
5) If nestle is not available would you buy another drink?
a) If I am really thirsty I will
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b) I will prefer simple water
c) I am indifferent
6) You would still buy nestle if prices increases?
a) Yes
b) No
7) At what level do you believe your product stands?
(a) Core benefit
(b) Basic product
(c) Expected product
(d) Augmented Product
(e) Potential Product
8) Categorize yourself according to your social status?
(a) Upper
(b) Upper middle
(c) Middle
(d) Lower middle
(e) Lower
9) Why not “Nestle”?
(a) Expensive
(b) Don’t like the taste
(c) I like other brands better
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(d) I don’t drink juices
10) What should “Nestle” do to increase sales?
(a) Cut costs
(b) Reduce prices
(c) Improve marketing strategies
43

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Mark

Market of Nestle’ Juices

7. Consumer Decision Making Process----------31

recommendations about the product.

Europe. Meanwhile, the Anglo-Swiss Condensed Milk Company was established in

and Anglo Condensed Milk Company.

2. Nestle Product Line

Nestle has a large product line. Including;

 Milk and dairy products

Some of its key products have been described as follows;

2.1 Nestle Bottled Water:

2.2 Nestle KIT KAT

KAT “Have a break, have a KIT KAT” is known at a world-wide level.

Australia and India.

one of its products which is Nestle Juices

3.2 Dynamic Expansion of Nestle Juices

leader in drinks market.

Nestle Juices are available in eight flavours.

(taken from google images)

infections and diseases and maintaining a healthy lifestyle.

(taken from google images)

3.3.3. Red Grape

(taken from google images)

heart functioning by regulating blood pressure and heart beat.

(taken from google images)

(taken from google images)

has no added sugar! It is also good for health.

(taken from google images)

Nestle Mango juice rich with Vitamin B

3.3.8. Mango Orange

3.4 Product Line Extension

this line includes two flavors

o NESTLE Limo (Lemon)

o NESTLE Malta (Orange)

3.5 Product Life Cycle

Nestle juices are currently in growth stage.

Following are the indicators of this conclusion that we have mentioned;

 More people are becoming aware of this product.

its guava flavor.

3.6 Sales Data

Nestle’ is operating in a monopolistically competitive market.

4.1 Competitors of Nestle Juices

Every organization faces competition in a competitive market. Nestlé is a multinational

competitors of Nestlé juices in Pakistan are as follows

• Minute maid (Pulpy Orange)

4.1.1. Market Share

4.1.2. Price Comparisons

market share than others.

4.2 Competitive Strategy

4.3 Competitive Edge

of juices because of the following reasons;

• It provides its customers with a variety that no other brand offers

Nestle’ juices meet their expectations.

4.3.1. Product Differentiation

company can compete nestle on the basis of quality.

4.3.2. Customer Oriented

marketing mix strategies one by one.

Product is considered to be the core element in the marketing mix, as it reflects

the successful creation and implementation of a well-blended product mix.

5.1.1 SWOT Analysis

opportunities and threats

and standard products

than any other local company