Re-Positioning of Nestl Limo and Malta

Marketing Management
Submitted to: Ms. Farah Ali Nawaz Term Report of Advertising and Branding

Abdul Rafay Adeel JAWAD Wajahat Zohaib Ian

Re-Positioning of Nestl Limo and Malta

Acknowledgement
First of all, we would like to thank Almighty Allah for blessing us with the courage, strength, and ability with which we were able to complete this report successfully.

Furthermore, we would like to extend our special thanks and appreciation our course instructor, Ms. Farah Ali Nawaz for her constant guidance and encouragement throughout the semester, and for making this report and incredible learning experience.

We have benefited a great deal while searching for the material and making the report and hope that people will also benefit from it.

Re-Positioning of Nestl Limo and Malta

Letter of Transmittal
July 20th 2012

Ms. Farah Ali Nawaz Advertising and Branding Course Iqra University, Karachi Respected Madam, We hereby present our project report Re- Positioning of Nestle Limo and Malta. This report identifies the Background, Marketing environment, SWOT analysis, Re launch strategy, Target market of the product. This Information has been collected through survey and books from library, all material used in the report has been acknowledged properly. Secondary data used in introduction, history and past image of brand, recommendations, strategy and swot analysis were made by us. It was a truly difficult task but we have tried to do our best to make this report after conducting thorough research, which involved much help from the internet, books and survey, which provided us with tremendous amount of information. This report has given us a great opportunity to add to our knowledge and learning. We hope that this report will be good enough to come up to your level of expectation and requirement, and will be helpful to the society in general. We are very thankful to you, for guiding us at all levels and being a very kind and patient teacher; and helping us in all the endeavors and difficulties that came across. Sincerely,

Group Members Advertising and Branding

Re-Positioning of Nestl Limo and Malta

Table of Contents

CONTENTS

PAGE

1 2 3 4 5 6 7 8 9

Nestle Introduction Nestle Pakistan Executive Summary Product Information Marketing Environment Re- Positioning Objectives Survey Consumer Survey Results Retailer Survey Results

5 5 7 8 9 10 11 11 15 18 20 21 22 24

10 Re- PositioningStrategy 11 SWOT Analysis 12 Recommendations 13 Questionnaire for consumer 14 Questionnaire for Retailers

Re-Positioning of Nestl Limo and Malta

Executive Summary
This report was made with the idea to Re- Positioning the infamous brand Nestle Limo and Malta, The research draws attention to why the brand failed, what does the market lacks, how the dynamic market shifts how price and taste are the two major factors in instant drinks industry, as the product was failed because of too many competitors and less advertisement was done the design on the brand was un attractive the cost didnt reflect the organization. Re-designing the whole brand image of the drink was the recommendation with added improvements as the taste of the product was similar to competitors it was that X factor which led the brand go down the drain, the main focus is promotional activities and sales will then follow. Many strategies are suggested of how to use the price penetration to enter the market and grab market share. This report will give a complete over view that how, when and where the product should be launched.

Re-Positioning of Nestl Limo and Malta

Nestle Introduction
Nestle is the largest consumer packed goods company in the world, founded and headquartered in Vevey, Switzerland. Nestle originated in a 1905 merger of the Anglo-Swiss Milk Company, which was established in 1866 by brothers George Page and Charles Page, and the Farine Lacte Henri Nestle Company, which was founded in 1866 by Henri Nestle. The company grew significantly during the First World War and following the Second World War, eventually expanding its offerings beyond its early condensed milk and infant formula products. Today, the company operates in 86 countries around the world and employs nearly 283,000 individuals. Nestle has over 6000 brands with a wide range of products across the world including coffee, bottled water, other beverages, chocolate, ice cream, infant foods, performance and healthcare nutrition, seasonings, frozen and refrigerated foods, confectionery and pet food.

Re-Positioning of Nestl Limo and Malta

Nestle Pakistan

Re-Positioning of Nestl Limo and Malta

Nestle Pakistan Limited is a subsidiary of Nestle S.A based in Switzerland, Nestle Pakistan deals currently in Manufacturing, Processing, and sale of these products

Milk Dairy & Chilled Dairy:

1. Milkpak 2. Nesvita 3. Nido 4. Neslac 5. Everyday 6. Dahi 7. Fruit Yoghurt 8. Raita 9. Milkpak Cream 10. Creation 1. 2. 3. 4.

Beverages:
Nescafe Nesquik Milo Fruita Vitals

Bottled Water:
1. Pure Life 2. AVA

Baby Food:
1. Cerelac

Food:
1. Maggi Noodles

Breakfast Cereals:
1. 2. 3. 4. Cornflakes Honey gold Flakes Koko Krunch Milo

Chocolate & Confectionary:

1. Kitkat 2. Kitkat Chunky 3. Polo

Objectives of Repositioning
To reposition our brand by creating extended brand awareness To build brand credibility by communicating our values and our products to our target audience To create customer satisfaction and loyalty Promote Goodwill while associating with CSR activities Generate new customers

Current Brand Identity Core Identity

Re-Positioning of Nestl Limo and Malta

Nestle Pakistan is committed to these business principles and culture which is also the base of the company worldwide, those business principles and culture are: o o o o o Nutrition, Health and Wellness Quality Assurance and Product safety Consumer Communication Human rights in business activities Value for money

Extended Identity
o o o o o o o o o o o Leadership and personal responsibility Safety and health at work Supplier and customer relations Agriculture and rural development Environment sustainability Commitment to strong work ethics Pro active co-operation Respect for other cultures and traditions High commitment to quality products and brands Public Relations based on trust and mutual respect Preferring long term perspective to short term

Nestle Pakistan is committed to these values:

Values are best expressed through our Aspirations and Beliefs, a doctrine that everyone at the company shares and practices every day.

Aspirations

Building Customer Loyalty Inspiring Employee Passion and Commitment Consistently Achieving our Key Business Objectives Acting with an Entrepreneurial Company Spirit Constantly Improving Our Company and Ourselves

Beliefs

Respect for People, Community and the Environment Honesty and Integrity Teamwork The Aspirations describe what we are striving for our company to become and how we chart our progress. The Beliefs provide a framework for decisionmaking. They guide individual actions on a daily basis. They are at the heart of what we do and who we are.

Product Information

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Re-Positioning of Nestl Limo and Malta

Nestle Limo (Lemon) & Nestle Malta (Orange) Instant Drinks provide fruitfilled refreshment that quenches your thirst and energizes your body with an instant citrus boost! They are both available in 25g single-serve sachets that are convenient and affordable. But what really hits the spot is that NESTLE Instant Drinks are packed with Vitamin C that provides immunity against diseases and helps put the glow in your skin. NESTLE Limo (Lemon) gives you 36% RDA (Recommended Dietary Allowance) of Vitamin C and NESTLE Malta (Orange) gives you 24% RDA of Vitamin C. So get refreshed and invigorated with NESTLE Limo and NESTLE Malta. Available in a convenient 500g Jar packaging NESTLE Limo (Lemon) & NESTLE Malta (Orange) was launched in 2005, company aimed to target a growing segment of soft drinks.

Target market:
Smart young housewives age 25-35 years, Socio Economic Class B & C. Wholesaler Retailers

Price:
Small SKU (Stock Keeping Unit) at market price & Larger SKU lower than competitors.

Ingredients:
Sugar, Glucose, Acid (Citric Acid), Orange / Lemon flavor, Anti caking Agent (Tri Calcium Phosphate), Thickener (Gum acacia, Carboxy Methyl Cellulose, Xanthan Gum), Natural and Artificial Sweeteners, Vitamin C

Nutritional Information:
Serving size Energy Total Fat Carbohydrates-Total Calcium Magnesium Potassium Vitamin C 1 glass (200ml) 305kj, 73 kcal 0g 18g 46 mg 04 mg 12 mg 13 mg

Brand Essence and Tagline

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Re-Positioning of Nestl Limo and Malta

The new brand essence and the tag line of Nestle Limo and Malta to attract customer is ENJOY WITH HEALTH (Maaza Sehat kay Sath). This slogan is showing consumers that our products are delightful which creates excitement and will steer people into wanting to consume our product.

Value Proposition
Functional Benefits Nestle Lemo and Malta offers a perfect blend of quality and taste. The drink is hygienic and fresh and the environment reflects a theme of colors, life, enthusiasm, happiness and excitement.. Emotional Benefits Nestle Lemo and Malta can be associated with a person or sport person who run down throughout the day and it give refreshing potential to the user of the product. Self Expressive Benefits The brand identity of Nestle Lemo and Malta will be strengthen and instill the expression of a persons style and personality of being socially connected to others in a trendy and exciting ambience.

Product Taste and quality improvement with the help of focus groups Four types of packaging, 25g sachet, 400g pouch, 500g jar, 7000g pouch 1500g tin pack Make an attractive and refreshing cover design for packaging

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Re-Positioning of Nestl Limo and Malta

1 month of test marketing pRe- Positioningto get feedback on taste and quality Change the brand name to Nestle Orange and Nestle Lemonade 300g pouch to have a seal after consumption to preserve taste and block air Increase the quantity of Vitamin C for more Recommended Dietary Allowance

2. Promotion Teaser advertisement will run for two weeks After the launch of the name of the product, for 2 weeks extensive advertisement would be done in TV, Print media, Radio, Bill boards, Brochures to get the consumer aware of health facts, sponsor events. Adopt creative agency Arrange a health mela in all the segmented cities with healthy activities and launch the product in Karachi in an after party Face to face marketing to be done 15 days before launch at major stores and major streets Mail marketing done to get people aware Build a Facebook page and attractive website for people to give feedback online Deliver sachet samples for one month before launch to all home delivery consumers of nestle pure life Sales man to go in universities, colleges, and school to provide a free glass for taste Give a free glass of nestle to 1kg tin pack consumers for 2 months after launch Maximum trade discount to retailers for promotion Gift hamper scheme to be launched in Ramzan Press releases for a month before launch and 6 months after launch Get Pakistan cricket team to promote the product before world cup 2011 and during it Advertisement to be done with new faces no celebrities

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Re-Positioning of Nestl Limo and Malta

Grab the attention of corporate sector who get the delivering services of pure life Make the product look of international standard and not local brand in advertisement Test marketing to be done for a month Change the packaging or brand design after 2 years to make the customer feel he is getting something new Sponsor a gym for health conscious people Place

Attract wholesalers and give them offers Retail coverage all the major cities Major accounts of super markets to be served more Supply chain should be simple and should be direct from manufacturer to wholesaler to retailer If product is successful after a year of launch more cities will be covered.

New packaging To take steps to reduce environmental footprint and be socially responsible Nestle Lemo and Malta will introduce SKUs 25gm, 130gms, 400gm and 1kg. Taste and quality will be improved through the revision of recipe.Company will launch the product in four (4)

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Re-Positioning of Nestl Limo and Malta

Price Competition based pricing for Sachet and pouch Market penetration price for bottle and tin pack Quantity discount for retailers Seasonal discount of 5% for consumer Bundled pricing with other nestle products like Pure life, Milo, maagi, etc 25g 7 pkr,400g 110 pkr,500g 158 pkr,700g 235 pkr,1500g 400 pkr. Sales Oriented strategy to increase sales volume and market share. Price Competition will be to keep the low Price, lower profit margins and have deep penetration in the market COMPETITORS PRICE* SUNSIP FRUITLY GRAM PKR GRAM PKR 25 6 20 7 150 42 225 61 225 60 500 162 500 160 900 210

TANG GRAM PKR 20 7 400 115 500 160 660 235 900 265 1500 425 *as per23/12/2010

ENERGILE GRAM PKR 45 10 400 75

Keys To Brand Image

1. Competitors

Direct Competition:
Tang Sunsip Energile National Fruitly

Indirect Competition:
All Soft drinks (Coke, Pepsi, dew etc) Energy Drinks ( Red bull, sting, etc) Liquid juices (Fruita vitals, Rani) Liquid drink maker (Roohafza, Jam-eshiren) 2. Target market: o Age groups 12-20 and 21-35

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Re-Positioning of Nestl Limo and Malta

o Young, health conscious, socializing people 3. Insight: The insight is to enhance the drinking fresh juices. 4. Benefits The benefits sought are quality Health with taste.

5. Reasons to Believe Reasons to believe Nestle claim regarding quality is that they use fresh, quality and hygienic ingredients in preparing every products. 6. Discriminator Nestle provides fresh juices with premium quality. 7. Essence The essence of Nestle lemo and Malta based on the concept of (Maaza Seth ka Sath). RE- POSITIONINGSTRATEGY Nestle Limo and Malta is to be launched on Feb 25th because the season would be changing and with an extensive advertisement one month before launch to penetrate market and grab market share to be in a position to get maximum sales in Ramzan. Turn the brand image upside down. Segmentation: o Brand will be only launched in the following city to grab maximum market share for a year (Lahore, Karachi, Rawalpindi, Islamabad, Multan, Faisalabad, Hyderabad, Quetta, Gawadar) o All age groups will be focused for consumption, and house wives and kids will be focused for buying decision o Families will be targeted who like to have guest at home and serve them o Health conscious consumers will be targeted

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Re-Positioning of Nestl Limo and Malta

Nestl Limo and Malta and the Branding Laws

The branding laws that apply to Nestl Limo and Malta are as discussed in the following section:

Law of Expansion and Contraction

Nestl Limo and Malta should focus in its core expertise of providing quality juice in big box. It should not try to diversify its extension line and deviate from its core business and needs focused strategy.

Law of Publicity
Nestl Limo and Malta will require making publicity by undertaking PR activities to publicize its new repositioned brand image of juicy drink at sport activities arena with exciting ambience.

Law of Advertising
Nestl Limo and Malta will also require a targeted and extensive advertising campaign. At present its market competitors are different juices, carbonated drinks and milk made products having a large share of the market, so in order to penetrate further into the market they need proper and repetitive advertisement.

8.8.4 Law of the Word

Nestl Limo and Malta is going to reposition itself in the minds of its consumers. The words that they are striving for are (Maaza Seth ka Sath) with Nestle Lemo & Malta. Its a brand which cares about its customers and offers them premium quality juice drink with suitable prices.

Law of Quality
Nestl Limo and Malta as seen from a customers point of view is a brand that delivers quality. After repositioning Nestl Limo and Malta will strive to maintain the same compelling image.

Law of Color
The orange & yellow colored logo of Nestl Limo and Malta represents an optimistic, sociable and extroverted personality, having a high need for belongingness. The color of its packaging also represents its brand heritage and culture. The color is differentiated in that it is different to that of its closest competitors like Tang lemon and orange.

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Re-Positioning of Nestl Limo and Malta

Law of Consistency
Nestl Limo and Malta has been heritage from Nestle on which they will be striving to maintain long term customer relationships by providing them consistent quality.

Law of Singularity
Nestl Limo and Malta carries a single identity which is an important factor for a brand to be recognized by consumers in the long run. Their name has been associated with quality and taste product. Since they have launched which dates back to 90s.

SWOT ANALYIS
Nestle Lemonade and Orange will have the following strengths, weakness, opportunities and threats Strengths: Low the price gets the bigger the packaging Enrich with the most Vitamin C and Calcium than any other drink Strong financial backing Unique Competitive advantage over distribution Most modern technology and unique packing for 300g which makes product always fresh Excellent track record of the company Strong position of Nestle as a company in the market Online feedback, UAN number also open for further suggestion Competitive advantage in reaching customer with several ways Weaknesses: Many competitors Previous image of brand Discouraged retailers because of past performance Launching of the brand in limited cities Less cost means less profitable Instant drinks have brand loyal, to attract them is the hardest part Opportunities: Capturing the eye of people who want standardized product with a new and good taste Launch six months before Ramadan will have enough time to grab market Launching more flavors (Pineapple, Apple, Mango) Possibility of capturing market of low income people Have more Packaging options More ATL and BTL marketing

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Re-Positioning of Nestl Limo and Malta

Threats: New competitors can enter the market any time with a strong backing Cannot adopt new technology soon Law and order situation can result into less buying Demographic shift in limited cities can result into turn off consumers New brand doesnt get recognized easily Low price can label our brand as low quality product There are no. of instant drinks manufacturers in the market Competitors can come up with attractive offers Taste may not suit everyone in the segment High demand of competitors brand

Marketing Environment Economic:

Consumer buying power is low that is why instant drinks have high demand and because of the increasing prices of indirect competition instant drinks is the solution to drinks, as the consumer buying power will be more for a low price item with good brand image the economic condition would be great for the brand, as there is a gap between the demand for the consumer many consumers have left other beverages and switched to instant drinks.

Socio cultural:
As we live in a culture where having guest at home is a frequent thing, serving the guest with a good instant drink is always a good solution, also being used at parties or other events to replace carbonated drinks and as carbonated drinks are known to be harmful culture is shaping towards instant drinks, instant drinks are cheap, healthy and the same time have good taste. There are no social constraints.

Technology:
As the technology is not changed since many years, what the competitors are doing is that they are doing more R&D to know what consumers want, there may not be any technological change for the coming years as every competitor uses the most high tech machinery to produce at a very low cost with great quality.

Political
There are no constraints in producing, manufacturing, market and sell the product.

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Re-Positioning of Nestl Limo and Malta

Why did the products failed?

o Launched at a time when there were many competitors and good quality products o Competitors above the line strategy was more than Nestle (Specially Sunsip) o There was no product awareness among consumers o Marketing material was not sufficient and poor o Nestle had Product Quality Problems o Was launched only on the basis of company name did not try to establish a brand from scratch o Less packaging options for consumer o Advertisement was not attractive and didnt focus on segmented market o Pricing Strategy was not adopted o Failed to highlight consumer benefits o Cover design of product was not attractive; it looked like a cheap product o Positioning was not clear o Scattered segmentation o Taste was not good o Trade Discount was less as compare to competitors

Why to re-position?
Theres always a gap between satisfaction, as the taste varies from consumer to consumer theres always room for improvement in taste and cost factor, as nestle has a brand image all over Pakistan for its quality products that is why instant drink should be re launched because of a good back, improvement of taste is very important. As the huge market for carbonated is getting slightly lower and switching to more healthy drinks there is a gap in the marketing which needs to be filled, as Pakistan is a country where there are many occasions and it can be a good substitute to all carbonated drinks in the country. Target market should be more focused and should be in chunks which are measured by packaging the more variety in packaging the more consumers will be attracted because they will get so many economical options to choose from.

Re-positionig Objectives: Short term:

Penetrate market

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Re-Positioning of Nestl Limo and Malta

Create extensive market share Create a brand image from scratch Adding value to the brand

Long term:
Brand become a status symbol Be in a position to compete with Tang and Sunsip, the market leaders Highly profitable brand

SURVEY
Questionnaires were distributed among 50 young people and 20 retailers were given a questionnaire to know more on does the market have potential for a re launch of a product and how can it be successful, because no matter how good the product is consumer is king and retailer makes it or breaks it for you, so both of them were interviewed and the consumers were interviewed at Iqra university, and retailers were interviewed in the following areas

North Nazimabad Defence Ph II & IV Clifton Block 8 Punjab Colony Defence view Questionnaires which were given to retailers and consumers are at the end of the report.

Consumer Survey

Which drink would you prefer?

8% 6% 29% Tang Energile Fruitly 57% Sunsip

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Re-Positioning of Nestl Limo and Malta

Which flavour do you prefer?

Orange 36%

Lemon 42%

Mango 18% Other 4%

How often do you consume instant drink?

Ocassional 20%

2 times a week 22%

Daily 58%

Prefer healthy drink over unhealthy drink?

Yes No

6%

94%

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Re-Positioning of Nestl Limo and Malta

What change do you want to see in your instant drink?

Taste Cheap Good Brand image More Flavours Mor packaging

18% 22% 12% 16% 32%

Does package variation plays as an influencer in buying an instant drink?

No 38% Yes 62%

Are you satisfied with the consumption of your current brand?

3% 11%

32%

54%

Strongly Aggree

Agree

Disagree

Strongly Disagree

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Re-Positioning of Nestl Limo and Malta

Does having a brand ambassador will change your buying decision?

No 38% Yes 62%

Does the company and brand image play an influencer in your buying decision?
No 18%

Yes 82%

Does cost play a vital role in buying the instant product?

No 3%

Yes 97%

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Re-Positioning of Nestl Limo and Malta

Do you prefer taste over cost in instant drink?

Yes No

36% 64%

Have you ever heard about Nestle Limo and Malta?

Yes 10% No

90%

Retailer Survey

Which instant drink sells the most?

Fruitly Energile 2% 10% Limopani 32%

Tang 56%

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Re-Positioning of Nestl Limo and Malta

Does the cost affect the consumer buying?

No 13%

Yes 87%

Who mostly buys an instant drink?

8% 6% 27% Youngster Housewives Kids Men 59%

Which flavor sells the most?

5% 32% 52% Orange Mango Lemon 11% Other

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Re-Positioning of Nestl Limo and Malta

Which drink had the most positive feed back?

5% 8% 22% Tang Sunsip Fruitly 65% Energizer

Have you ever heard about Nestle Limo and Malta?

No 24%

Yes 76%

Conclusion:

There is still a gap of satisfaction, some consumers and many retailers are aware of the brand, so re-positioning a product when there is a gap in market and people want to get food taste with a cheaper price, and launching the best selling flavors, cost packaging. Nestle will provide a complete package which are lacking in the market.

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Re-Positioning of Nestl Limo and Malta

RECOMMENDATIONS

Brand name change Sponsor shows Brand image changing More healthy ingredients in drink Give preference to BTL to attract the buyers Extensive advertisement with every medium Get feedback for 6 months after launch and change if required before Ramzan Introduce more packages before Ramzan launch Continue promotional activities for three months after repostioning

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Re-Positioning of Nestl Limo and Malta

QUESTIONAIRES FOR CONSUMER

Q1. Which drink would you prefer? A. Tang B. Fruitly C. Energile D. Sunsip Q2. What type of flavor do you prefer in instant drinks? A. Mango B. Lemon C. Orange D. Other Q3.How often do you consume instant drinks? A. Daily B. 2 or 3 times in a week C. Only occasionally Q4. Do you prefer healthy drink over unhealthy drink? A. Yes B. No Q5. What change do you want to see in your instant drink? A. Taste close to original flavor B. Cheaper C. Good brand image D. More flavors E. More packaging options Q6. Does package variation plays as an influencer in buying an instant drink? A. Yes B. No Q7. Are you satisfied with the consumption of your current brand? A. Strongly agree B. Agree C. Disagree D. Strongly Disagree

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Re-Positioning of Nestl Limo and Malta

Q8. Does having a brand ambassador will change your buying decision? A. Yes B. No Q9. Does the company and brand image play an influencer in your buying decision? A. Yes B. No Q10. Does cost play a vital role in buying the instant product? A. Yes B. No Q11. Do you prefer taste over cost in instant drink? A. Yes B. No Q12. Have you ever heard about Nestle Limo and Malta? A. Yes B. No

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Re-Positioning of Nestl Limo and Malta

QUESTIONAIRES FOR RETAILERS

Q1. Which instant drink sells the most? A. Tang B. Fruitly C. Energile D. Sunsip Q2. Does the cost affect the consumer buying? A. Yes B. No Q3. Who mostly buys an instant drink? A. Youngsters B. Housewives C. Kids D. Men Q4. Which flavor sells the most? A. Mango B. Lemon C. Orange D. Other Q5. Which packaging sells the most? A. 4.4 liter/500g Q6. Which drink had the most positive feed back? A. Tang B. Fruitly C. Energile D. Sunsip Q7. Have you ever heard about Nestle Limo and Malta? A. Yes B. No