Nestle Pure Life: pure drink water

Mi za S erAf Ms. rNafisahKhalidg a n Babar Zaryab Dogar Zeeshan Ali Mehmood Ali Saad Ayub

INTRODUCTION Nestle is one of the famous food company in the world. The mission of the company is Good Food, Good Life" whereas the aim and target of production is to provide consumers with the best tasting, nutritious and healthy products from a wide range of food and beverage categories. The Company was founded in 1866 by Henri Nestle in Vevey, Switzerland. The main headquarters of Nestle are still located there and can be seen until today. Nestle came from the surname of Henry Nestle himself which means little nest. Until now the word Nestle apply in both of company name and the logo. The nest symbolizes security, family and nourishment, and plays a central role in delivered the message of the Nestle products which emphasized healthy life for people in every stage of life. Creating shared value is the way of the company doing their business. In addition, Research and Development (R&D) also become one of key competitive advantage for Nestle. With 29 research, development and technology facilities worldwide, Nestle becoming the largest R&D network of any food company in the world. Nestle was become a very well known company and recognized and considered as the biggest food company in the world with 500 operating factories in 80 countries. 224000 employed people with annual sales of $47 billion makes Nestle become a very major and influenced company that contributing a wide range of food and beverage products to the world population. At the beginning, this company is very popular with milk and chocolate products. Since it began over 130 years ago, Nestle had been successful with its product innovations and business acquisitions. As the years have passed, the Nestle products range has grown to include chocolates, coffee, cereals, frozen products, yoghurts and other products including pet foods, pharmaceutical products and cosmetics. Nestle is one of the best example company that undergone the process of changing in many aspects for over the years. Nestle Pure Life: The launch of Nestle Pure Life in December 1998 was a truly historic event. This marks the Nestle Pure Lifes entry into the countrys fast growing water market. At the same time Pakistan became the first country where Nestle launched the new brand. Nestle Pure Life is a premium drinking water, produced to the highest standards of safety and purity. It is ideally balanced with essential minerals. It is available in two convenient sizes of 0.5 and 1.0 liters. Capitalizing on its strong brand recognition, aggressive pricing and supported by a strong marketing campaign, Nestle Pure Life has made very strong inroads into the water market in Pakistan. Nestl PURE LIFE is available around the globe today in Canada, USA, Mexico, Brazil, Argentina, South Africa, Saudi Arabia, Jordan, Egypt, Lebanon, Turkey, Russia, Uzbekistan, Pakistan, China, Thailand, and the Philippines. Launched on the North American market in 2003, Nestl PURE LIFE is destined to become the worlds leading and most widely distributed brand by 2010.

MARKETING PHILOSPHY FOR NESTLE PURE

LIFE WATER:

Nestle Pure Life is a premium drinking water, produced to the highest standard of safety and purity. Their aim is to provide customer with pure drinking water on suitable prices make the product as convenient as possible. According to their claim that they provide the best food through out the world. For Nestle Pure Life they adopted the societal and marketing concept. Competitive analysis: Objectives of Nestle Pure Life: The main objective for the SBU was to be number one selling bottled-mineral water in Pakistan. This objective was hoped to be accomplished by setting the following further sub-objectives. i) Safety: To provide the consumers with a safe drinking water: Consumers want reassurance. The Nestle name on the product is an assurance of quality for the consumer. Also related to safety is the fact that the water is captured in a safety environment and undergoes rigorous treatment to meet universal quality standards. The water is de-mineralized by distillation. Mineral salts are then added, in accordance with a strict formula developed. The bottling line is also subject to strict sanitary regulations: an air-controlled room houses the filing machine, and the bottles and caps are sterilized. Quality is a continual process and is monitored during each production phase - some 200 controls. Packaging also receives special attention. Each Nestle Pure Life bottle and the 5-litre PET jug have a special cap and tamper-resistant band. This way, the consumer can tell immediately whether the bottle has come straight from the plant or if it has been tampered with. To offer consumers a healthy product: Remineralization let Nestle offer consumers a balanced, refreshing and healthy product, the product's second key objective. The formula developed for Nestle Pure Life contains minerals such as calcium, which is essential for bone development; magnesium, which is recommended for muscles and the central nervous system; bicarbonates, which are particularly useful for digestion; and sodium, which helps regulate hydration in the human body. Overall mineralization is light (200 mg per liter) and suitable for the whole family.

iii) To offer an affordable mineral water: As well as being pure, safe, healthy water, Nestle Pure Life is affordable and convenient. No matter what the format, Nestle Pure Life is sold consistently at popular prices affordable for a large portion of the population. The 1.5-L bottle is offered for Rs. 22 -- cheaper than most of the other water brands of the same size. The 0.5 L bottle was initially offered for Rs. 8 but now is sold for Rs. 12. The increase in price has been caused mainly due to inflation and competition. iv) To make the product as convenient as possible: This was the product's fourth objective. Due to its wellbalanced mineral content, Nestle Pure Life can also be used for cooking and to prepare tea or coffee. The brand is available in several formats suited to a variety of consumption patterns (50 cl, 1.5 litre, 5 litre). The idea is clear: to be close to the consumer. In other words, Nestle Pure Life must be available in all sales and restaurants outlets and anywhere else consumers young and old are likely to buy or drink water. These objectives can be very well matched with the mission statement of the organization. Consider the following mission statement: Nestle is dedicated to providing the best foods to people throughout their day, throughout their lives, throughout the world. With our unique experience of anticipating consumers' needs and Creating solutions, Nestle contributes to your well-being and enhances your quality of life. Referring to the first part of the mission statement, Nestle did provide the consumers with the best bottledmineral water, as it is number one in the bottled-water market in Pakistan. According to their claim that they provide the best food throughout the world, Nestl Pure Life is available throughout Pakistan in a number of outlets because of the intensive distribution strategy of the firm. Secondly, Nestle was very successful in identifying the need for safe and pure drinking water, and thus came with the wonderful solution of providing the Nestle Pure Life water. Referring to Nestl Pure Life, it has all the essential minerals, which a human body needs, as well as, it is pure and safe. Thus it improves one aspect of our lives. By drinking healthy water, people can escape different fatal diseases like Hepatitis B and C (one of the causes of which being the contaminated water). Ultimately, the quality of life is enhanced as portrayed by the mission statement. NESTLE PURE LIFE & ITS COMPETITORS: There are not too much competitors of nestle pure life in the market because Nestle was the only company who gives the idea o bottled water. Up to some extent Sparklet and AVA are the competitors of Pure Life Water. But in future Pepsi and Cocal Cola will be their competitors because they are also launched their drinking water Aquafina.

MARKET SHARE OF PURE LIFE WATER:

Nestle occupied 85% of drinking water market in all over the Pakistan. In Lahore Nestle Pure Life has 69%of total market, Sparklet has 13% and Cool have 11% and reaming 7%are kept by other local companies. In Karachi 50% of market is kept by Nestle and 25% by AVA and remaining 25% is kept by other local companies. As for as Islamabad is concern Nestle Pure Life has 65%of market Share.
Market Share of Ne stle Pure Life in lahore Market Share of Nestle Pure Life in Karachi

1 2 3 4

1 2 3

STRATEGIES FOR COMPETITIVE ADVANTAGES: Every product on the shelf, every service and every customer contact helps to shape this image. A Nestl brand name on a product is a promise to the customer that it is safe to consume, that it complies with all regulations and that it meets high standards of quality. Customers expect us to keep this promise every time.Under no circumstances will we compromise on the safety of a product and every effort must be made to avoid hazards to health. Likewise, compliance with all relevant laws and regulations is a must and is not negotiable. People, equipment and instruments are made available to ensure safety and conformity of Nestl products at all times. The effort is worth it. Companies with huge quality standards make fewer mistakes, waste less time and money and are more productive. They also make higher profits. Quality is our most successful product. It is the key to our success, today and tomorrow. The customer comes first We want to win and keep customers: distributors, supermarkets, hotels, shopkeepers and the final consumers. They have very different requirements. Trade customers expect excellent service, correct information and timely delivery. Consumers consider taste, appearance and price when they make their choice. Our task is to understand what customers want and respond to their expectations rapidly and effectively. We serve various groups of consumers and there is demand for products at different levels of perceived quality and price. All customers, however, expect value for their money good quality at a reasonable price. When offering quality to customers we also mean environmental quality. Nestl shares societys concern for the environment and is committed to environmentally sound business practices throughout the world. Customers are central to our business and we must always respect their needs and preferences. Quality is a competitive advantage We live in a competitive world and must never forget that our customers have a choice. If they are not satisfied with a Nestl product, they will switch to another brand. Our goal, therefore, is to provide superior value in

every product category and market sector in which we compete. The pursuit of highest quality at any price is no guarantee for success, nor is a single-minded cost-cutting approach. Lasting competitive advantage is gained from a balanced search for optimal value to customers, by simultaneous improvement of quality and reduction cost. Success can never be taken for granted. We must watch and learn from our competitors. If they do something better, we must improve our own performance. We can achieve competitive advantage through Quality. Quality is a joint effort Operating companies are fully responsible for maintaining agreed quality standards. Not only Production units, but also Marketing, Purchasing, Distribution and Sales have a vital role to play in providing quality to customers. This implies a thorough knowledge of the products and services we offer Quality units at different levels of the organization provide specific support, promote quality awareness, assume guardianship and audit the system. Quality departments monitor operations against agreed standards and must intervene in case of non-conformity. Quality policy and principles, the mandatory standards and the recommended tools for implementation are laid down in the Nestl Quality System that is applicable throughout the group. Further directions are given through instructions, norms and guidelines, often specific to a product. Our business products, such as raw material producers, packaging suppliers, contract manufacturers and distributors are expected to share our concern for Quality. They too must set up an adequate quality system, so as to meet our requirements consistently. Every function and department in the company as well as our business partners must share the quality efforts. Quality is made by people Adequate equipment, procedures and systems are needed to make Quality; so are involved and dedicated people. Each and every Nestl employee must do his best to provide quality products and services. Training and teamwork are crucial to the successful implementation of high quality standards. Continuous training ensures that everyone understands his tasks and has the necessary skills to carry them out. Teamwork allows us to achieve results that are greater than the sum of individual efforts. We motivate employees by demonstrating management commitment to Quality, by setting challenging goals and by giving them responsibility and recognition. It is through employee involvement that goals and targets can be achieved in the shortest time. Quality must be a way of life for everyone in the company. Quality is action Quality is the result of deliberate action. It is the responsibility of senior managers to communicate the quality objectives and to provide the resources necessary for their implementation. It is then up to all employees to make Quality happen throughout the company. Progress is followed by listening to our customers and by measuring our performance. Shortcomings and mistakes must be analyzed and corrected. Problems must be anticipated and prevented before they occur. We also must identify and take advantage of opportunities. To stand still is to fall behind. So we must strive for continuous improvement in every area. It is through many small improvements as well as through major breakthroughs that we will achieve excellence. CREATIVE MESSAGE STRATEGY: Consumer insight:

Nestle Pure Life have its brand name and loyalty from consumers. The insight towards Nestle is that they will always give the best quality and on the right time. Big Idea: The big idea about this ad campaign is that other competitors are snatching the market share of Nestle but coming up with the ad will give shocker to the competitors and with its TAG line BEAT THE HEAT WITH NATIONS WATER The ads are attached with the cd. SALES STRATEGY OF NESTLE PURE LIFE WATER: The sales strategy which Nestle adopted for Pure Life water is Availability & Visibility. To increase sales and gain profit the company has to provide proper supply of product in the market. All the time company remains busy to make the availability of their product in the market. In departmental stores and shops the Pure Life Water is so placed that it is visible for the customers.

Market Positioning Strategy, IMC Plan, Perceptual Mapping and USP

There are certain points on which they occupy their customers and those points are very helpful in retaining their customers. There are number of water products available in Pakistani market including Springley, Sprarklet, Aqua Fina, Kinley, Deja Blue and many others. But Nestle Pure Life attracts its customers throw many reasons. The main reason is Pure Water which is the name of this product. Rests of the water products are using chemicals which can be harmful for the human body but Nestle Pure Life is the only water product which is pure in nature .That is also the unique selling point of Nestle Pure Life. This is the most powerful point that is in the mind of the customers while purchasing any water bottle in their routine life. The brand name is also very important for the consumers. The slogan of Nestle is Good Food Good Life. That is very attractive slogan people can attract from. It puts the perception in the minds of people that theyre being offered good products for their healthy lifestyle. If you look at the logo of Nestle, youll get to know that a bird is feeding the children. Obviously a mother cant deceive the children. Nestle pure life is a brand of nestle which explains a big symbol of quality to customers. Nestle Pure Life shows in their ads about the purity of water and the water need for your body. In its launching advertisement, the company advertises Nestle Pure Life very successfully. In that advertisement, a lady is drinking Nestle Pure Life Water and then it goes towards inside the body to show the functions of pure water. That was the awesome commercial that boosted the sale of Nestle Pure Life. Nestle is also advertising on famous websites like you can observe that whenever you will login to your facebook account, the ads of Nestle will be there. There are number of sign boards and banners you will see in the cities to aware people about the products of Nestle. Thus, Nestle is using all types of media to advertise their products in anyway. When Nestle Pure Life was launched, they distributed the free samples of 0.5L bottles for market testing and for their advertising purpose. Then a short walk was also arranged for the sake of good health and seminars was also conducted to make sure about the pure water needed your body. To understand the depth of Positioning, we will divide into three steps.

SWOT ANALYSIS

STRENGTHS
Companys name Nestl signifies the quality image high standard and quality product. Loyalty from customers is also the major strength for the company. Employees are also loyal due to the decentralized culture of company. People trust on products due to the proper health and safety measures. Being a multinational company it has the capability to attract more customer than the local companies. Company has the ability to compete in a dynamic environment. Company always adapts the new technology. Company has high budget for quality management, promotion and advertising products WEAKNESSES: The weaknesses are as follows: 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. Company incurs high production cost as it does not want to compromise over quality. Often conflicts arise between distributors which affects the sales. OPPORTUNITIES: They have an opportunity to expand or capture the market by adding its product line. They can also capture the market of home appliances. Company can open separate stores to eliminate retailers. Recently, they have created an opportunity for themselves by introducing chillers in the market. Company is trying to open stores in universities. They can provide incentives to retailers to increase sales volume. THREATS Existing companies are increasing their product lines that can prove to be a threat in the coming years.

 As compared to the local competitors, our distributor cost is very high. As Nestl Products has to maintain and obey the Nestl standards. Some companies are competing on the basis of cost e.g. Gourmet. Demand of the product is elastic. Purchasing power of majority population is decreasing which is a great threat for the sales of the company. Competitive analysis Competitive analysis includes the comparison of one organization with its competitor. It differentiate product and tells which product stands at which position. It tells about the differentiation of characteristics and weaknesses of the product with its competitors. As we know that more important competitor of Nestle is Aqua Fina. STRATEGIES FOR COMPETITIVE ADVANTAGES: Every product on the shelf, every service and every customer contact helps to shape this image. A Nestl brand name on a product is a promise to the customer that it is safe to consume, that it compile with all regulations and that it meets high standards of quality. Customers expect us to keep this promise every time. Under no circumstances will we compromise on the safety of a product and every effort must be made to avoid hazards to health. Likewise, compliance with all relevant laws and regulations is a must and is not negotiable. People, equipment and instruments are made available to ensure safety and conformity of Nestl products at all times. The effort is worth it. Companies with huge quality standards make fewer mistakes, waste less time and money and are more productive. They also make higher profits. Quality is our most successful product. It is the key to our success, today and tomorrow. SALES PROMOTION STRATEGY:

Personal Selling: A direct Vendor Selling Activity was coordinated and carried out during the summer months of June, July, and August 1999 in Lahore. A team of vendors, clad in branded T-shirts, caps and jackets, sold chilled 0.5 liter bottles to travelling customers on all major intersections. The brand got great mileage out of this innovative idea of personal selling in terms of brand awareness, paid trial, image as well as real sales.

Publicity: Nestle Pure Life was launched on 14 December, 1998 in Karachi with a huge amount of enthusiasm and positive response shown by the locals. The successful story of its launch was printed in all the local newspapers the next day. This greatly helped in creating awareness of the brand and gave its introduction a good start.

Sales Promotion: Specific promotions of Nestle Pure Life were arranged in some of the key outlets of Lahore. Elaborate shelf space was acquired for product display and specially designed POS material was extensively used to promote sales. On a 12-bottle purchase of 1.5 ml, one 1.5 ml bottle was offered free to consumers. Similarly on a 6-bottle purchase of 1.5 ml, one 0.5 ml bottle was offered free. Regarding trade promotion, the retailer was also given an additional discount of 4 % during this sales promotion. Not only did the sales of Nestle Pure Life grow tremendously during the promotion, these continued at a higher pace even after it was over. Product sampling and sticker sampling activities were carried out in Murree in summer of 1999. Nestle marketing team has also undertaken a major education campaign on water use and its importance in daily life. Mothers of school children were sent an invitation to attend a Water Show demonstrating the benefits of safe water and were asked to fill out a questionnaire. The questionnaire refined the team's knowledge of consumer perceptions. At the end of the show, visitors received a promotional kit offering a chance to sample Nestle Pure Life and opportunity to enter a photo contest on the theme Nestle Pure Life and You. The contest offered 10,000 rupees in prize money. This helped boost the brand's image in the minds of consumers. Another contest took place in October 2001by the name of Cricket Hangama. This contest provided a chance to win a thousand of tickets, signature posters, VIP Tickets, and a chance to dine with the cricket stars. Besides this, Nestle Pure Life also sponsored the following events: a high profile, national level hockey match played at Ayub Stadium, Quetta on April 18,2003 and a cycle race on March 9, 2000 in collaboration with the Baluchistan Cycle Association.

Public Relations: As far as the public relations is concerned, The organization releases an annual report which includes the company's financial statements along with the sales of all product categories. The annual report is mainly aimed at the stockholders. However, another very important form of public relations are the newsletters and bimonthly magazines issued by the organization. A huge amount of information is found in these regarding the products and their promotion. In the same way, Nestle Pure Life was given quit a bit of importance in the newsletters issued after its launch, which obviously helped in creation of the awareness of this brand. Besides these promotional methods, word of mouth, a major factor in Pakistan proved to be very effective in the increasing sales of Nestle Pure Life. ADVERTISING Advertising is any paid form of non personal presentation of ideas, goods, or services by an identified sponsor. According to NESTLE PURE LIFE the advertising objectives they aim are to convey the quality of their products without comparing them with other competitors products. Nestle is a large company so it has a separate advertising department whose manager reports to the vice president of marketing. The media planner of that department considers the product characteristics most. They believe that media types have different

potential for demonstration, visualization, explanation, believability and color. All the companies use advertising tools which are used to persuade the consumers to buy their products or give them information about the product. Nestle believes that television and newspaper are the most powerful advertising tools because first of all television is seen everywhere in the world and all the people are most focused on watching television and secondly newspapers are the largest form of print media. REMINDER ADVERTISMENT There are different types of advertising such as informative, persuasive, reminder or reinforcement; According to Nestle they use the Reminder advertising in which they aim to stimulate repeat purchase of their products. Like expensive ads on the televisions, on billboards or magazines are intended to remind people to purchase Nestle products. SEPARATE ADVERTISING DEPARTMENT To decide their advertising budget Nestle has a separate advertising department financed by pure life. They are not sure of the exact figure but they are confident that their budget is more than that of any other company. SALES PROMOTION SPONSORSHIP PROGRAMES Nestle pure lifes sales promotion offers incentives to buy their products. First of all they design sponsorship programs and in that they have a separate budget for promotion of pure life controlled by the pure life department Nestle. This department provides them with sufficient funds required for their promotion. They develop brand equity in the minds of the consumers by focusing on the quality of their products and being confident about what they are producing. For example Sufi and Gourmet are less expensive than Nestle but they say that Nestl has nothing to with other competitors products because in market competition there is always loss or gain of customers. To keep up their market share they just concentrate on the value they give to their customers and the customer service they provide. Due to launch of water by competitors, maximum four or five hundred of their customers switched which was negligible as Nestls market share is quite large. SALES PROMOTION Advertising offers a reason to buy whereas sales promotion offers an incentive to buy. Relating to Nestle they prefer advertising over promotion. TRANSIT ADS

They have their own trucks as well relating to their vehicle advertisements and these trucks supply water to their customers as well. When we consider the type of customers Nestle focuses, according to them they focus all types of customers, including all classes but their sales in developed areas is obviously more than in backward areas as people in those areas may not afford to buy their products. So basically they focus the customers who

are willing to buy their products rather than examining all groups of consumers and then setting their prices accordingly. EVENTS AND EXPERIENCES Nestl considers its social responsibility very important. They dont compromise with the health of their customers and they strictly follow strategies to keep up with their social responsibilities. They have quality checks in their laboratories to check their products and test them before they reach the end-consumers. They provide their retailers with no extra incentives other than the free water given to them on bulk purchase. Communication with customers gains their attention and may lead them to the product. For the promotion of their products Nestle arranges concerts and events and it helps communicating with the people and it increases the number of their consumers which shows a positive result on their sales. A well-chosen event or experience as a part of the sales promotion can be seen highly relevant as the consumer gets involved and events like those arranged by Nestle, to promote their products are more of an indirect soft-sell.

MARKET SEGMENTATION: To occupy a clear distinctive & desirable place related to competing mineral water in the minds of the target customers Nestle Pure Life segments its market on two bases: Geographic segmentation Demographic segmentation GEOGRAPHICAL SEGMENTATION: The Company segments its market geographically on divisional basis. They divide each division in different zones and every distributor is restricted to sale its products only in his own zone. E.g. Lahore is divided into five zones like East, West, South, North, and South west. DEMOGRAPHICAL FACTOR: If we look nestle pure life's demographic segmentation than we will find that our product is for every one. People from any area, any culture, any age, any sex, any belief and any income will drink water. It is not any luxury item which is used by a specific people. TARGET MARKET OF PURE LIFE WATER: A specific demographic target market was not chosen for Nestle Pure Life, instead the goal was to develop a product to be used by consumers of all ages - from infants to seniors. It was intended as a family product especially for families living in large, polluted urban agglomerations that experience increasing difficulties finding safe, healthy drinking water. In fact, Nestle Pure Life's 0.5 L bottle is targeting to be also an alternative to soft drinks. Basically the target market of nestle water is those areas where the consumers having more awareness about pure life. As the people in villages having less information about Nestle Pure Life. So targeting marketing depends on the awareness of the consumers.

SELETING TARGET MARKET Target Market Strategies Undifferentiated mass market.

Differentiated Segmented Marketing.

Concentrate Marketing.

Micro marketing or Individual Marketing.

POSITIONING STRATEGY: There are some competitive advantages or important attributes of Nestle Pure Life drinking water, occupying in consumer's mind relative to competing mineral waters are as follows: PURE DRINKING WATER: Nestle Pure Life is only drinking water product in the market. Their competitors are selling mineral water which contain extra chemicals which are harm full for human body, but as for as pure life is concerned it is made by keeping in mind the chemicals which human body requires. NESTLE LOGO & FAMILY BRAND: Pure life use Nestle brand name and the logo of nestle pure life is also showing family care to consumer which is enough to attract the customer. That's why customer gives it preference on other products.

 COMMUNICABLE: Nestle pure life is a brand of nestle which shows a big sign of quality to customer. Due to its brand name it is very easy to communicate. MARKETING ENVIRONMENT: 1) Internal environment 2) Micro environment 3) Macro environment

1) Internal Environment: In Nestle Internal environment ensures Employees are on side with the goals of an organization. They have direct impact on product quality, dependability and overall productivity. They are internal market, which impact every department within an organization; a satisfied internal market will be better able to satisfy external market. Nestle under the supervision of top management runs the departments of finance, operations, accounting, sales and marketing, research and development to achieve the goals of organization. 2) Micro Environment: In Nestle microenvironment includes:

a) Suppliers: Suppliers provide the resources like labor and material resources to produce goods and services. They add to customer overall value delivery system. Labor supplies include handling of Quantity of labor Quality of labor Labor strikes Labor relations Material supplies deals with the Quantity of material Quality of material Price of material Stability of material inputs Delivery delays

Nestle efficiently handles the quality, quantity, price and stability of both material and labor supplies. Management maps out the strategies for labor strikes, supply shortages and delays to avoid increasing the cost of production, which can badly affect sales in short run and customer satisfaction in long run. b) Marketing Intermediaries: It includes the firms that help the company to promote, sell and distribute its goods to final buyers. The physical distribution firms determine the ways to store and ship goods to reach their destination. Marketing service agencies including marketing research firms, advertising agencies and media firms are also hired to target and promote product to right market. Financial intermediaries like banks, insurance companies helps to finance transactions and insure against risks associated with buying and selling of goods.

Nestle works in coordination with marketing intermediaries to make its product Pure Life Water available and visible to its valuable customers. c) Customers: Nestle deals with the reseller customers who buy the product Pure Life to resell at a reasonable profit. 3) Macro Environment: Macro environment include political, cultural, economical factors but as for as Nestle Pure Life Water is concern none of above factors affect on it. Because it is not at luxury item they are selling necessities of life which can never be affected.

Demographic Environment: Demographic environment including age, sex and income also not effect Nestle Pure Life water. Because water is for every gender, every age and for every class. BRANDING STRATEGY OF NESTLE PURE LIFE: Nestle brand name present a message of caring which make it distinctive and attractive than other companies. Pure Life's brand is good food for good life. The message of family protection is enough to get the attraction of customer. The Nestl's brand name is easy to understand & translate. It is easy to pronounce and it is also easy to recognize. Another message in brand name is given to customer to preserve their families from different deceases. LABELING STRATEGY OF NESTLE PURE LIFE: Nestl's pure life's label gives all information about their product like ingredients which are used in it and all instructions regarding product. PRICE FIXATION STRATIGIES: These are following objectives of nestle pure life regarding price fixation: Profit Earning: Profit earning is the main objective of every company but in case of nestle their profit margin is low. Only a few amount of profit is collected from pure life water. Customer satisfaction: In nestle pure life price is not fixed by keeping in mind profit motive, only customer satisfaction is kept in mind while fixing the prices. STRATIGIES FOR FIXING THE PRICE: In nestle prices are set on cost basis as given below: Price = Cost + Profit Break even or Target price: Per Unit Price = variable cost + fixed cost / units of sale CHANEL OF DISTRIBUTION: Nestle pure life is making full efforts to supply its product to ultimate consumers. For this purpose the company uses the conventional marketing channels of distribution to supply the product. In this method company supply the product to whole seller who respond it to retailers who supply to ultimate user. In this method Nestle feel little consumption of time because retailers cannot directly approach up to the company. The company also uses the vertical marketing system in which retailers also take supply from directly company resources without contact with whole sellers. In this way the margin of company decrease and going into the interest of the ultimate consumer. Vertical Marketing System Pur Life Water Conventional Marketing System Pure Life Water

Whole Seller

Whole Seller

Retailers . Consumers

Retailers Consumers

COMMUNICATION & ADVERTISING STRATEGY:

Advertisement is a tool to introduce the product in the market. To increase sales and build an image in the mind of consumer company advertise their product in different ways, as for as Nestle pure life is concerned company use: Television Radio News Paper Bill Board Hoarding etc. Some time company also makes free sampling, held stalls at different programs like Health Mela. Pure Life's communication strategy is weak as they follow emotional black mailing. In advertising they show emotional feelings to their customers.

MESSAGE TO AUDIENCE: In every advertisement of pure life water the company tries to convey their message like: They provide health food and health drinking water for caring their customers. We work for society welfare. FUTURE FORECASTING OF NESTLE PURE LIFE WATER: In future two competitors of Pure Life are going to launch their water in the market which are Pepsi & Coca Cola. As their competitor will advertise their product at very high stage so people will get awareness about drinking water and nestle pure life can achieve a great market share in future Because people can see that our water is getting rough day by day and there is a need for pure drinking water to survive in the world. For these opportunities company is going to launch an other plant for drinking water next year. NESTLE ROLE FOR SOCIAL WELFARE: Nestle is not playing any acting role for the welfare of society because their margin ratio is very less. Nestle pure life profit margin is 5% on the other hand the profit margin of Pepsi is 60%, Mobilink 55% and Coca Cola has 50%. So they can afford these huge expenses but Nestle can't afford it. SUGGESTION FOR NESTLE PURE LIFE WATER:

 The company should make huge expenses on advertisement in rural areas of Pakistan to create awareness in the mind of local area's people. The company should held seminars and meeting for the promotion of Nestle Pure Life.

Conclusion
The hallmark of the nestle is the quality of the products which the company offers.

COMPETITIVE EDGE OF NESTLE

The companies all over the world get some competitive edge based on some features which other companies dont have. For example, as the Dell has the competitive edge over other computer manufacturer companies, because they use Built-to-order Strategy while no other company in computer industry use this strategy. Similarly in Pakistan nestle has their Competitive edge based on these Strategies: Product Differentiation Customer Oriented

PRODUCT DIFFERENTIATION STRATEGY

Nestle is using the product differentiation strategy by providing the superior quality products. Their main focus is to keep the customers loyal. They bought shelve space in different departmental stores to attract the customers. They tried to reach each group of people in which they have succeeded.

CUSTOMER ORIENTED
Customer satisfaction is the focal point for the company. They provide hygienic products to their customers. Products are also verified by health and safety measures and international quality standards.

References :

http://en.wikipedia.org/wiki/Nestl%C3%A9_Pure_Life http://www.nestle.co.za/default.aspx?pid=45 http://www.nestle.com/AllAbout/AllAboutNestle.htm http://www.nestle-waters.com/en/Menu/NWToday/