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Fundamentals of Marketing 1
ACKNOWLEDGEMENT
Fundamentals of Marketing 2
Marketing Term
Report
NIDO By NESTLE
MISSION STATEMENT:
“We are committed to offering consumers high-quality food
products that are safe, tasty and affordable.”
VISION STATEMENT:
“We care for our consumers because our success depends on
meeting their needs and expectations. Through listening and
understanding, we can make products that they will want to use all
through their lives.”
Branches:
Fundamentals of Marketing 3
It has its factories in more than 70 countries and market .Its
product in more than 125 countries and the sales of the Nestle is
among the top ten companies of the world.
Nestle In Pakistan:
Nestle international also wanted to expand its business in South
East Asia. For this motive in mind the first signed a venture with
Indian Company and than turned its attention towards Pakistan.
Venture With Milkpak:
Milkpak is a company of Wazir Ali Group and is known for
producing finest quality products like Milkpak Dairy products e.g.
Milkpak Milk, Butter, Desi ghee, Cream etc. and also a market
share leader in juices e.g. Frost.
Seeing the reputation of Milkpak in Pakistan, Nestle signed a
venture in 1987 and from than the company is serving consumers
with the name NIDO.
PRODUCT NIDO
Our product is Nido 1+, 3+, 6+. Now, there is brief introduction of
our product Nido. Nido is a product of Nestle. Basically, it is milk in
the form of powder. Company takes the pure milk from the cows
and dried it in the form of powder and some nutrients, which are
beneficial so that consumer will get it in the form of pure form milk
and children will
Become healthy. NIDO is available in the market in the three
different types for the different age children that are explain
below:
NIDO 1+:
Age:
Nido 1+ is for 1 to 3 years children.
Main Features:
It’s special feature is Prebio’ Protection which means healthy
Tummy. Nido 1+ comes with Prebio Nestle unique natural blend of
fibers, helps to maintain a healthy digestive system of children
from age 1 to 3 years. Nido 1+ also contains Vitamins A, C, E,
Selenium, Zinc and from that yours child immunity to fight
against germs and battery and helping the child to grow strong
and healthy.
Fundamentals of Marketing 4
NIDO 3+:
Nido 3+ is for 3-6 years children.
Main Features:
Nido3+ means Smart Growth. At the age of 3, your child begins
exploring the exciting world of school and friends, eager to group
new ideas. Encourage your child to be active learner and sociable.
Its main feature is o increase the mental abilities of your child.
NIDO 6+:
Age:
Nido 6+ is from the 6-onwards children.
Main Features:
Its main feature is Calci-N means Healthy Bones. From age 6 it is
important that children get enough calcium to make their bones
strong since most of their bone structure is built before reaching
30 years of age. Nido 6+ contains Calci-N Nestle natural calcium
source from milk, which has calcium and vitamin –D in proportion
that helps lock in your child’s bones. With only two glasses of Nido
6+ daily your child will get all the calcium needed everyday to
build bones.
Fundamentals of Marketing 5
PRODUCT EVALUATION
Type of Product:
Level Of Product:
Fundamentals of Marketing 6
Then decide highly attractive packaging which is according to law.
Consumer Products:
In case of NIDO, we can say that the NESTLE NIDO lies in its
GROWTH stage for the following reasons.
• Huge shares in market.
• Maximum profit
• It lies in star category in BCG matrix
• Due to changing in culture of Pakistan people switching to
DRY MILK from FRESH MILK (OPEN). This will increase in
the sale of NIDO.
The diagram is shown below:
<
Fundamentals of Marketing 7
MARKETING ENVIRONMENT
MICRO ENVIORNMENT:
Company:
The Company’s internal and management operations can effect
the overall production of Nido. In our company, all the departments
have an intranet system so that they can communicate with each
other and have latest information about each other. In the same
way, all the departments help each other to perform different tasks
easier. For example, in Nestle, our Marketing department works
with Finance department, R & D department, Purchasing
department etc all work together and focus on the needs of the
Customers in order to perform well and meet out objectives and
give our customers satisfaction. In the same way, Nestle also rely
on team based work, free environment between the sub-ordinates
and bosses, decentralized authority to the managers and get
feedback also from the employees in decision making.
Suppliers:
As Nestle has an high standard for their milk, and other basic
needs which are needed to produce dried milk “NIDO”. So, Nestle
feels that most of the suppliers cannot able to fulfill their need
according to their standard, at last Nestle has arranged their own
system of suppliers and now they have their own farms, cows and
from their farms, Nestle has own system to bring Raw Material
“Milk” to the Plant. So, in this way, Nestle has controlled impact of
external suppliers by arranging their own internal system.
Fundamentals of Marketing 8
Intermediaries:
They are also using marketing intermediaries by owning their own
distributors, providing their goods to final buyers and consumers.
They are selling Nido through wholesalers, retailers and marketing
agencies.
Customers:
Customers are very important for every company because by
attracting those customers, company brand will only succeed. So,
in case of Nido, Nestle main customers are:
Consumers,
Wholesalers,
Retailers and
International customers.
Public:
Publics are the people that are associated with the company due
to some benefit or company is associated to them for their
benefit.. The benefit can be monetary or social. Company give the
benefits to its shareholders if the company flourishes, the
shareholders are the financial public who attain benefit in the form
of dividends. In the same way, TV channels and print media are
media public because they help the Nestle in their advertisement..
General people are also the general public of the company such as
customers and customers are those who buy company brand.
Compensation is also given to the employees, so these are the
internal public.
Fundamentals of Marketing 9
MACRO ENVIRONMENT:
Macro forces are the force that can have impact on the
performance of the company. Some of these forces are discuss
below:
Demographic Environment:
Demographic environment is the geographical study of humans.
According to manager, Nido 1+ is for the children of 1 to 3 years,
Nido 3+ is for the children of 3 to 6 years and Nido 6+ is for the 6
to onwards children. So, increasing or decreasing children
population, giving children fresh milk instead of dried milk etc can
affect the brand.
Technological Environment:
Nido plant has latest technology to create more attraction towards
their products. However, technology is increasing day by day, they
have to improve their technology with time.
Economic Environment:
Economic environment is the combination of people’s income &
spending patterns. As far the economic environment’s concerned
is not good
Political Environment
Political factors have a great impact on Nido because if the sales
increases more tax would be applied on the whole company.
Similarly, if the charges of tax will change, then it will also effect
on the brand and it is also a political factor.
Natural Environment:
Natural environment can also effect Nido quality or taste. Because
if the cows from which milk is obtained, become ill and a disease
will spread among them such as then it ha a great impact on Nido.
Fundamentals of Marketing 10
Responding to the Marketing Environment
There are three kinds of companies:
1. Those who make things happen
2. Those who watch things happen, and
3. Those who wonder what’s happened.
Nestle is one of those things who make things happen. That is why,
Nestle is one of the leading company and most of the companies
follow its criteria and trend.
COMPETITORS ANALYSIS
Competition:
Fundamentals of Marketing 11
NIDO has no local market competitors, as there is no good
powdered milk locally produced available in the market and
NESTLE NIDO is the only firm producing good quality powdered
milk. Secondly NESTLE is the only firm producing powdered milk
and is market share leader in all respects.
International Competitors:
At the time when NESTLE introduced NIDO in the Pakistan market
it was facing a intense competition with the following brands:
♦ MILLAC
♦ RED COW
♦ SAFETY
♦ DANO
♦ KLIM
Major competitors among these were Millac and Dano at that time
but span of time NIDO with its quality overcomes them and
become a market share leader.
SWOT ANALYSIS
Strengths:
The company has more advantage in the Pakistan market
because they are market leaders having 95% market shares in
Pakistan. Nestle is only one company producing dry milk which is
its strength .Now this NIDO has the monopoly in the Pakistan. Nido
plant has the latest technology then any other company in
Pakistan.
Weakness:
Distribution channel is the weakness of the company because it’s
only focus in the urban areas. Nido can be affordable in urban
areas and Company cannot focus on villages, towns etc.
Opportunities:
The company has the lot of opportunity to expand their business in
the Pakistani market because there are no other competitors in the
Pakistani market. The company also got the 90% share in the
Pakistan market.
Fundamentals of Marketing 12
Threat:
If any other Pakistani or International competitor comes in the
future that can be the first threat for Nido.
Competitive Advantages:
Nido has best Quality among the Competitors.
Excellent taste of Nido
Providing the superior value
Nido is unique in Pakistan
Nido Contains Iron, Proteins, Calcium, Vitamins for the health
of children.
Nido is most pure milk available in the market in the market.
Fully automated machinery and laboratory system are fitted
in the Plant to check and maintain the purity, quality and
taste of Nido.
Powder milk with some thickness
Tastes better than milk
Customer loyalty is high and more people trust on brand
name.
Nido has strong market and financial position than its
competitors.
Nido is available in different sizes for the benefits of its
customers.
CONSUMER ANALYSIS
Consumers are the most important body in the market, as all the
products manufactured in the market are with the analysis of the
consumer’s need & wants. Thus, the behavior of the consumer is
most important in the success of the company.
Fundamentals of Marketing 13
Basic Stimuli For the Consumer
The stimuli are the factors, which become the main source for
buying the product. The company to create the response for the
product creates these stimuli. The basic stimuli for which the
company in the case of NIDO is catering are.
Product
The company is providing more features to the product for the
customers. For the better
response, the company is having a ‘More for less’ type of theory.
Economic Condition
The economic conditions of our country are not so good. The
people in Pakistan respond to the less priced goods. Thus, the
economic conditions of the country are not stimuli for NIDO.
Consumer Equity
NIDO has a strong customer’s equity. Most people use it
frequently. The demand of NIDO is very strong in market & it
captures more than 90% shares of coffee market.
Brand Recognition
The brand recognition of NIDO is very strong. NIDO has strong
brand equity. NIDO is becoming famous in Pakistan day by day.
Now, parents, which are health conscious about the children,
started giving their children NIDO.
BCG MATRIX
HIGH
DOGS
STARS
Fundamentals of Marketing 14
(GROWTH
RATE)
QUESTION
CASH COWS MARKS
“?”
LOW
1. Cultural Factors:
The major cultural factors influencing the buying behavior of
customers of NIDO are:
Culture: Parents having health conscious of their children
are heading towards requiring greater intake of NIDO by
their children, which in turn increase the demand of the
product.
Fundamentals of Marketing 15
Family: Family, most influential primary reference group,
is of paramount importance in NIDO consumption by
children. Parents (Family of orientation) have a major
influence on the consumption pattern of NIDO by children.
Both of parents have an equal role in the purchase of
NIDO.
3. Personal Factors:
The major personal influencing the buying behavior of target
customers is their family life cycle.
Family Life Cycle: Consumption of NIDO varies as children mature
over their lifetime. For example, mothers use NIDO 1+ for their children
aging 1 year to 3 years, NIDO 3 + for their children 3 to 6 years and
NIDO 6 for their children above 6 years. In addition, Housewives, if not
for small children, also use as Nido as milk and in making many desserts
e.g. Kheer, Rasmalai, Custard etc.
4. Psychological Factors:
Motivation: Nestle has promote NIDO by moving
campaigns regarding health of children. It has told that
NIDO is better then the fresh milk for the health of their
children through campaigns. One of the examples of this
campaign is NIDO Sehat Kahani in ARY Digital Channel.
So, Nestle is trying to develop the need in the people that
NIDO is best for their children.
Fundamentals of Marketing 16
Beliefs And Attitude: It is difficult to change the
customer’s attitude, so, Nesltle is trying to change the
public beliefs regarding using fresh milk and making them
aware about advantages of powder milk.
Buying Roles
MARKETING STRATEGIES
MARKET SEGMENTATION
In order to identify the correct target market, NIDO Nestle use the
market
Geographic Segments
ountry:
Nestle NIDO is focusing on Pakistan.
Country Region:
Punjab, Sindh, N.W.F.P. and Boluchistan.
City:
Fundamentals of Marketing 17
NIDO is mainly targeting to metropolitan cities such as Lahore,
Karachi and Islamabad. But its also distributing at small cities
such as Faisalabad, Gujranwala, and Multan but its main
target is Metropolitan Cities
Density:
Urban areas
Demographic Segments
In demographic segments market divided into different segments
like age, gender, family size, family life cycle, income level,
occupation, education, religion & nationality. Demographically the
target market of NIDO is the middle and upper class. Some of the
factors are given below:
Age
. According to manager, Nido 1+ is for the children of 1 to 3
years, Nido 3+ is for the children of 3 to 6 years and Nido 6+
is for the 6 to onwards children. So, increasing or decreasing
children population, giving children fresh milk instead of
dried milk etc can affect the brand.
Gender
There is no discrimination while using the NIDO
Family Size
Whatever the family size is, NIDO is for every child.
Income Level
The target market of NIDO includes those people having an
income of 20000 and above.
Psychographic:
Social Class
In social classes section, company targets upper class, upper
middle, middle class.
Life Style
Fundamentals of Marketing 18
In case of NIDO, strivers, which are mostly young children, are our
actual consumers who take NIDO as a milk.
Behavioral:
Occasion:
Nido is usually bought frequently, so it lies under Regular
occasion category.
Users:
Regular users, potential users.
Loyalty Status:
Loyalty status is high..
Readiness Stage:
People are aware, inform, interested, desirous and
intending to buy.
TARGET MARKET
Before the introduction of Nido in the market, the company has
gone the statistical calculations about the population and the
consumption of the product and also do market segmentation.
They found that they have an opportunity of their product in upper
middle class and upper class. They also estimated the
consumption level and demand for the product and found that an
average of upper middle class and upper class needs Nido to feed
their children between 3 to 12 years old. NIDO also targets Nido
towards housewife as many functions can be perform by using
Nido.
Fundamentals of Marketing 19
also targeting each and every member of a family i.e. all age
groups.
We want the mothers to feed that Nido is best for their children.
Housewives also contributes in the target market as Nido is used in
making many desserts e.g. Kheer, Rasmalai, Custard etc.
Position Statement:
“Bahtareen Nashonoma ki Majboot Serhi”
PRODUCT STRATEGIES:
.
Product Decisions:
Fundamentals of Marketing 20
Nestle focus on NIDO attributes, brand name, packaging, labeling
and product support services in order to make important product
decisions. Now, they are discussed one by one:
Product Quality:
Nestle take great care to maintain good quality of NIDO and keep
consistency in their quality. There are laboratories in the factories
in which quality of NIDO is checked and then it is send to the
market.
Features:
Nestle unique natural blend of fibers, helps to maintain a healthy
digestive system of children. Nido 1+ also contains Vitamins A,
C, E, Selenium, Zinc and from that yours child immunity to fight
against germs and make the children bones and mental
capabilities strong and healthy.
Branding:
The brand name of the product is “NIDO”. Also the brand mark
of the product is same, i.e. NIDO, but its distinctive way of writing,
design and color make it distinctive from competitors’ products
and easily identifiable to its customer. The brand mark of NIDO is:
Fundamentals of Marketing 21
the fact that company introduces NIDO in afterwards in
liquid form.
Packaging:
The powder form is packed in aluminum foil, which is further
protected in cardboard cartons. Packaging of NIDO protects the
product on its way to retailers and also to end consumers.
Packaging of Nido is attractive and good to look. At the same time,
there are three reasons for packaging:
Design
NIDO packaging is designed with special care with unique
features and attractive design so that it can attract the customers
including parents and children.
Features
Introduce new features like in size and give new varieties
such as NIDO1+,
NIDO 3+, NIDO 6+.
Labeling:
NIDO has a descriptive label with its pack describing the
objectives of the product, information about the use care,
performance and its pertinent features which are explained above
in the introduction of NIDO.
It is also advised on packaging of NIDO to keep powder milk in an
airtight jar and store in a cool dry place once in use. The label also
Fundamentals of Marketing 22
states the nutritional information of the product along with tips on
preparation for customers’ children.
Attribute Positioning:
NIDO is also positioned as providing the benefit of healthy
diet for their children because it contains Proteins, Calcium,
Zinc, and Selenium. It provides its users the appropriate
content of proteins and calcium necessary for normal bodily
activities.
Brand Development:
Nestle has extended the line of NIDO by providing it in
three different forms with minor modification in
ingredients. So, NIDO is following the Line Extension
Concept.
Fundamentals of Marketing 23
<
PRICING STRATEGY:
PRICING
Meaning Of Pricing
Importance Of Price
Pricing Objectives
2. Status quo-oriented:
• To stabilize prices.
Fundamentals of Marketing 24
• To meet competition.
3. Market share Leadership
4. Product Quality Leadership
To Maximize Profit
2. Status Quo-Goals:
Fundamentals of Marketing 25
This is related to current situation in short return and not to long
run. Nestle select that price which gives it maximum current profit.
In this high price of Nido is charged for its superior quality this is
done to cover the cost of producing the best quality milk powder in
the market. Consumers tend to think that if the price is high than
the product quality must be high.
Final Price
Fundamentals of Marketing 26
The final price for Nido is Rs. 130 per 1000 Gms. This price
satisfies the quality and standards of Nido.
PLACING
NIDO has no individual distribution system. It is pushed with other
companies’ product line. Company has appointed its distribution
offices
In all major cities of Pakistan.
KARACHI
MULTAN
Fundamentals of Marketing 27
ISLAMABAD
PESHAWAR
2nd Floor State Life Building, the Mall Peshawar Cantt.
Phone: 276274, 274954
Fax : (0521) 276274
Fundamentals of Marketing 28
3. Gathers and Provides information about the changes,
development in the marketing environment.
4. Tries to find and communicate with the prospective buyers.
5. Distribution helps in promotion.
6. Helps in negotiation.
7. Helps in transporting and storing goods.
Intensity Of Distribution:
1. Advertisement:
Advertisement is an essential part of moderate ad so much that it
is not possible for an entrepreneur to even imagine a world without
advertising. The advertisement page of a news papers, magazines
etc. is like a modern novel which gives a “slice from life”.
For this purpose NIDO NESTLE is going heavy advertisement on TV,
Newspapers, Magazines, and advertisements boards.
2. Sales Promotion:
Fundamentals of Marketing 29
ingredient of many marketing strategies. Peoples have general
appreciation about milk powder so that’s why NIDO NESTLE is
doing sampling of its products.
However, when company finds some break in sales, advertisement
is started and some ads are placed on TV but this is not done on
permanent basis.
Company is satisfied from its promotional programs because it is
getting results to its wishes, but now in the near future company
has many ambition plans about the promotion of NIDO.
3. Public Relations:
Promotional Budget
Fundamentals of Marketing 30
REFERENCE LIST
Fundamentals of Marketing 31