Federal Urdu University of Arts, Science and Technology Islamabad
Marketing Project
Group Members: • • • •
Asfandyar Fida Muhammad Rizwan Muzamil Hussain Ather Riaz
Submitted To: To:
Mr. Imran Mir
ated:
!" #une$ %!&'
Federal Urdu University of Arts, Science and Technology Islamabad
Introduction This is a semester pro(e)t re*ardin* a )ompany we ha+e de)ided to sele)t ,estle as a )ompany for our pro(e)t. pro(e)t. ,estle ,estle has been ser+in* this this world for o+er one hundred and thirty thirty years. It has differenti differentiated ated itself itself throu*h throu*h its hi*h -uality -uality produ)t mi and positioned positioned itself itself as health and ,utrition /ompany while tar*etin* the health )ons)ious people throu*hout the world Henrie ,estle established ,estle in &012 in Switzerland. ,estle is world3s ,! & food )ompany. 4 5a) 4" thousands people employed all o+er the world. 6peration in more than &"2 )ountries 6+er 2!! produ)ts reno+ated or inno+ated in the past fi+e years.
Federal Urdu University of Arts, Science and Technology Islamabad
I!
Situation Analysi ysis
a! "#tern "#ternal al "n "nvir vironm onment ent
i.
Political
,estle is a *lobal )ompany and leadin* in nutartion$ food be+era*e indu indust stry ry../ompan /ompanie iess poli poli)e )ess are are afft affte)t e)ted ed if ther theree is unst unstabl ablee polti polti)al )al en+ironment . ,estle has full support of *o+ernment3s to manufa)ture healthier diets diets for tar*et tar*et mar7et and they they ha+e made si*nif si*nifi)a i)ant nt )han*es )han*es in produ) produ)ts ts a))ordin* to the )ustomers needs ii.
iii.
i+.
"conomic A))ordin* A))ordin* to latest report report ,estle ,estle has or*ani) *rowth *rowth of 8.89 in %!&'. In %!&8 sales are "&.1 illon dollars and profit *enerate by )ompany is &8 billon b illon dollars. Social ,estle was founded on so)ial responsibilty. responsibilty. ,estle manufa)ture produ)ts whi)h are le*al and healthier for people peop le in this way tar*et mar7et be)ome satisfied International ,estle )ompany impro+es their operation by epandin* their business on a intern internati ationa onall s)ale$ s)ale$ ,estl ,estlee )ompany )ompany perfor performin min* * operat operation ionss in more more than than &"2 )ounties.
b! $or% $or%or orat atee &evie &evie' ' I! Misson Good Food$ Good 5ife.; The )ompany aims to pro+ide )onsumers with tasty$ healthy food and drin7s for e+ery meal and sna)7 .
(ison: Their +ision is to be the leadin* Food and e+era*e /ompany in all o+er the world pro+idin* our )ustomers with hi*h -uality produ)ts and ser+i)e at )ompetiti+e pri)es in this way our )ompany will be able to a)hie+e its *oal and ob(e)ti+es
Strategic Intet
II!
,estle is world leadin* in nutration$ food and be+era*e industry.In industry.In past years they deli+e deli+erd rd best best -uality -uality produ)t produ)tss to their their )utome )utomers< rs
Federal Urdu University of Arts, Science and Technology Islamabad
manufa)ture best -uality produ)ts in afforadable pri)e for typi)all mar7et they use best prmotion sour)es to intar)t with )ustomers.
)ong term *oals
III!
•
•
• •
I(!
Redu)in* dire)t water withdrawal per tonne of produ)t by 8!9 )ompared to %!!'$ by %!&' Redu)in* dire)t *reenhouse *as emissions per tonne of produ)t by 4'9 )ompared to %!!'$ by %!&'. =ro+idin* healthy and tasty foods to their )ustomers. /ompany want to reamain world3s leadin* in food > be+era*e industry.
+bjectives ,estl?@s )orporate ob(e)ti+e is to be the world@s lar*est and best branded food and be+era*e manufa)turer with best -uality produ)ts.
• •
(!
To build build trust trust and stron* stron* business realtionshi realtionship p with )onsumers$ )onsumers$ *o+ernmental *o+ernmental authorities and business partners. Introdu)e new produ)ts and tea)nolo*ies Monitor perforam)e and results and ma7e )han*es to a)hie+e re-uired *oals.
+rga rgania niattiona ionall $hart rt
CHAIRMA P.Barbeck-letmathe C"# P.Bulcke
Cor!orate governance
D.P FRICK
Finance % control
#!erations J.Lope
Cor!orate communications $harma
R.Ramsauer
S&U's mar(eting %sales Innovation technology % R
J.Singh
!.Bauer estle -aters
estle nutrition R.$.Laube
*one "UR+ "UR#$" L.Frei"e
% cosmetics H F.Castaner
J.J.'arris
*one A#A+ ASIAAFRICA
F.%an F.%an Di&k Di &k
c! Prod Product uct $atego $ategory ry &evie' &evie' Federal Urdu University of Arts, Science and Technology Islamabad
!.Bauer
estle $rofessional #.Caira *one AMS+ Americas L.Cantarell
I!
*eneral -iscri%tion ,estle is world3s lar*est nutrtion$ food and be+era*e industry. ,estle3s manufa)ture produ)ts whi)h are healthier and deli+er best -uality produ)ts to their )ustomers. They do not use any harmful in*redients. So their produ)ts are for all people$ a*es and )ultures.
II!
Sales Trends ,estle3s is world leadin* in nutration$ food and be+era*e industry. =eople in now a days more )on)ious about their diets and health. ,estle3s introdu)e best -uality brands whi)h are healthier and tasty.Ma(or shares of brands a))ordin* to or*ani) *rowth are: ,es)afe &&9$ Milo &49$ ,estle pure water &&9 $ ,ido &&9 &&9 > Ma**i &!9
-istribution
III!
,estle has its own distribution networ7 with all transporation fa)ilities. They transport their their produ)t produ)tss to re*iona re*ionall sales sales offi) offi)es es whi)h whi)h are situat situated ed all o+er the world. world. The distribution pro)ess )onsist of followin* steps: Raw material$ manufa)turer$ pro)essin*$ produ)t$ pa)7a*in*$ $ transporation$ distributor$ retailer$ )ustomers.
I(!
Pricing: =ri)e depend upon the mar7et of produ)t. ,estle /ompany )har*e fair pri)es a))ordin* to the produ)t -uality$ -uality$ )ompetition in the mar7et and they made produ)t a))ordin* to the buyin* power of the )ustomers e.* ,estle Mil7 =a)7 &&! RS =er 7* in =a7istan.
(!
Packaging ,estle3s used best material for pa)7a*in* of produ)t in order to pre+ent food waste and a+oide a+oide to dama*e dama*e en+ironm en+ironment ent $ )ompany )ompany also a+oided a+oided the wasta* wasta*ee of pa)7a*i pa)7a*in* n* material. ,estle3s desi*n pa)7a*in* in su)h a way that it attra)t )ustomers to buy the produ)t.
d! $om%et $om%etat ative ive Analysi nalysis s -escri%tions of major com%etitors strength and 'eakness I! Ma(or )omprtitor of ,estle )ompany are n*ro foods$ Balmart$ Cnile+er$ Habib$ $ 7eurin*$ 7eurin*$ Cnile+er Cnile+er ,D$ ,D$ Hershey Foods$ Eraft Foods$ /adbury S)hweppes$ S)hweppes$ GR6C= A,6, and many other )ompanies )ompanies et) These )ompanies )ompanies manufa)ture manufa)ture same produ)ts li7e nestle and used best distribution sour)es $ ma7e )han*es in pri)e of produ)ts to )hallen*e nestle in the mar7et.
II! II!
.ran .r and d Pos Posti tion onin ing g and and adve advert rtis isin ing g
Media a S% S%en endi ding ng In %!&&$ /! Medi %!&&$ ,est ,estl? l? spent spent more more than than %." %." bill billio ion n C.S. C.S. dolla dollars rs on ad+ertisin*$ in %!&4$ ,estle spent 4.&% billon C.S dollars on ad+ertisn* worlwide. II!
Sales Promtion: It was one of the best ad+ertsin* )ompi*on used by )ompanies to attra)t )ustomers. ,estle done the promot promotion ion of the produ)t produ)tss +ery smartl smartly y. ,estle ,estle try to poisti poistioni onin* n* that that their their
Federal Urdu University of Arts, Science and Technology Islamabad
produ)ts are for all a*es and healthier for e+ery on e in this way they will attra)t lar*e mar7et. ,ow$ ,estle3s ,estle3s is world leadin* nutration$ food and be+era*e industry.
e! $ons $onsum umer er Ana Analy lysi sis s I!
-emog mogra%h a%hical Fact actors rs If we loo7 on ,estle3s )ompany demo*rphi) se*emenation then we will find that their some produ)ts are for e+ery one $ people from any area$ )ulture $a*e$ and any beliefs et) and some produ)ts are for spe)ial tar*et mar7et e.* /hildren foods li7e /erali) for only )hildrens et)
II!
.rand )o )oyalty A))ordin* to latest resear)h ,estle3s )ompany ran7ed ,6.' most lo+ed )ompany all o+er the world. It is due to the )onsumers brand loyalty. It@s the world@s leadin* nutrition$ health and wellness )ompany. The mission of ;Good Food$ Good 5ife; is to pro+ide )onsumers with the best tastin*$ most nutritious )hoi)es in a wide ran*e of food and be+era*e )ate*ories and eatin* o))asions$ from mornin* to ni*ht.They are pro+idin* best -uality produ)ts to their )ustomers. In this way )ustomers be)ome loyal they do not pur)hase )ompetin* produ)ts a+ailable in mar7et.
III!
Purchase &ate : ,estle3s )ompany manufa)ture produ)ts whi)h are healtheir and tasty. In this way they attra)t attra)t health health )on)iou )on)iouss people people after after deli+er deli+erin* in* best best -ualit -uality y produ)t produ)tss their their )ustom )ustomer er be)ome brand loyal. They pur)hase ,estle3s )ompany produ)ts an* *i+in*perferen)e ,estle3s produ)ts amon* )ompetitors )o mpetitors produ)ts . =ur)hase share of some ,estle3s produ)t a))ordin* to annual %!&8 report: =owdered and 5i-uid produ)ts %!.4 9 Mil7 and i)e )ream produ)ts &1.29 . =repared dishes &4.'9 ,utritio ,utrition n produ)ts &4.&9 =et)are &&.49 &&.49 Bater Bater 1."9 > )onfe)tionery )onfe)tionery >)ho)olate ".09.
II !
S0+T Analysis
Strengths
Federal Urdu University of Arts, Science and Technology Islamabad
•
/ompany3s name ,estle spe)ifies the -uality ima*e hi*h standard and -uality produ)t
•
5oyalty from )ustomers is also the ma(or stren*th for the )ompany
•
mployees are also loyal due to the de)entralized )ulture of the )ompany
•
=eople trust on produ)ts due to proper health and safety measures
•
The stren* stren*th th of ,estle ,estle )onfe)ti )onfe)tiona onary ry is its import imported ed )ho)ola )ho)olates tes and )andies )andies$$ whi)h whi)h stren*thens its ima*e
•
ein* a multinational )ompany it has the )apability to attra)t more )ustomers than the lo)al )ompanies
•
/ompany has the ability to )ompete in a dynami) en+ironment
•
/ompa /ompany ny alway alwayss adap adaptt the the new te)h te)hnol nolo*y o*y and and deli deli+e +err best best -ual -ualit ity y prod produ)t u)tss to )ustomers.
0eaknesses sales. 1 There is not mu)h mar*ins for retailers to prefer it3s sales.
1
They need to impro+e the fa)ilities of transporation of produ)ts and promotion of the produ)t
1 The distribution )ost is hi*h as )ompared to the )ompetition in the lo)al mar7et.
+%%ortunities •
They ha+e an opportunity to epand or )apture the mar7et by addin* its produ)t line.
•
They ha+e the opportunity op portunity to offer sna)7s > enter in i)e )ream industry.
•
They )an also )apture the mar7et of home applian)es.
•
/ompany )an open separate stores to eliminate retailers.
•
Re)ently$ they ha+e )reated an opportunity for themsel+es by introdu)in* )hillers in the mar7et.
•
/ompany is tryin* to open stores in uni+ersities.
•
They )an pro+ide in)enti+es in)en ti+es to retailers to in)rease sales +olume.
Federal Urdu University of Arts, Science and Technology Islamabad
Threats
III!
•
)ost. istin* )ompanies are in)reasin* their produ)t lines that )an pro+e to be a threat in the )omin* years.
•
/ompany li7e /adbury is *i+in* more dis)ounts to retailers as )ompared to distributors due to whi)h retailers prefer its produ)ts for sale.
•
As )ompared to the lo)al )ompetitors$ ,estle3s distributor )ost is +ery hi*h. As ,estl? =rodu)ts has to maintain and obey obe y the ,estl? standards.
•
Some )ompanies are )ompetin* on the basis of )ost.
Strategic Planning a! Mark Market etin ing g +b +bje ject ctiv ives es ,estle business ob(e)ti+e o b(e)ti+e is to manufa)ture and mar7et its produ)ts in a way that )reates +alue that )an be sustained o+er the lon* term for shareholders$ employees$)onsumers$ business partners and national e)onomies in whi)h ,estl? operates<.The aim of the )reatin* +alues for the )ompany in)lude with impro+e business )onditionfor the firm. To obtain more reliable and hi*h -ualify sour)e of raw materials$ impro+ed *o+ernment fun)tionin* and re*ulatory$ employed s7ill and loyal wor7for)e and superior -uality produ)ts whi)h su))essfully )omplete. b! Marke Marketin ting g Str Strate ategi gies es ,estle3s define mr7etin* as: A so)ial and mana*erial pro)ess where by indi+idual > *roups obtain *ood food and *ood lifethrou*h )reatin* and e)han*in* produ)ts and +alues. For this purpose thay used mar7etin* stsrte*y to bulid stron* realtionship with )ustomers. Their mar7etin* staret*y is to attra)t new )ustomers by pro+idin* superior produ)ts in affordable pri)e to satisfy them. There all produ) ts are healthy for life and for so)iety welfare. So a))ordin* to their mission and +ision they are followin* Societal Marketing $once%t . c! Targeti rgeting ng and and seg segme menti nting ng Target Market: ,estle3s produ)ts are not for all. all. Some produ)ts are for different different tar*et mar7et and other are for different e.* baby foodies$ for babies and Mil7 pa)7 for teena*ers and elders dependin* upon people in)ome$ life style$ pur)hasin* power et). they will be tar*etin* only those se*ments that )an pro+ide best possible returns so in this way they may be able to a)hie+e their *oals effe)ti+ely and effi)iently effi)iently..
Federal Urdu University of Arts, Science and Technology Islamabad
Market Segmentation : ,estle has di+ided its mar7et into *eo*raphi) 5o)ation and area $ demo*raphi) A*e$ below &0$ abo+e 4!$ &04! and *ender$ psy)ho*raphi) Cpper )lass$ lower )lass and middle middle )lass a))ordin* a))ordin* to their in)ome le+el and beha+ioral beha+ioral se*ments. se*ments. These se*ments se*ments will help to understand the mar7et better and in implementation of mar7etin* strate*ies. d! $om% $om%eti etitiv tivee Adva Advanta ntage gess : 5eadin* in food and be+era*e industry • est -uality produ)ts to )apture lar*e health )on)ious mar7et • The resear)h and de+elopment )apabilities allow the /ompany to lead the way in • inno+ation amon* its )ompetitors e! Posit Position ioning ing and and .ra .randi nding ng As ,estle has sal*on Good Food Good 5ife< they ha+e tryin* to positioin* that their produ)ts are for e+eryone and healtheir for health. They do not use )hemi)als and harm ful in*redients whi)h are also harmful for human bein*s as well as en+ironment. ,estle3s )ompany used best promotion sour)es to poistionin* that their brands are le*al and healthier for e+eryone. In this way they the y attra)t health )on)ious lar*e mar7e
/(! Marketing Marke ting Mi# Product =rodu)t stands for *oods and ser+i)es that the )ompany offers offers to tar*et mar7et. ,estle manufa)ture produ)ts whi)h are used e+ery day. ,estle has lar*e number of produ)ts some of the brands are followin*:
aby Foods$ rea7fast /ereals$ e+era*es$ ottled Ba Bater$ ter$ /ho)olate > /onfe)tionery$ airy =rodu)ts$ Food Ser+i)es$ I)e /ream$ =repared Foods$ =et)are > /osmeti)s ,ames of some produ)ts are: /erela)$ )oo7ie )risp$ ,estle fruit (ui)es$ /offee ,es)afe$ Milo. ,ido$ ,estle =ure 5ife ottled water$ water$ /run)h$ Eit Eat$ ,estle ,estle Mil7 =a)7$ Fris7ies$ Ma**i$ o* /how$ 5 6real et) Price The pri)e is dependent on the mar7et of ea)h indi+idual produ)ts. ,estle sets pri)es of their produ)ts a))ordin* to the mar7et demand as low as possible to a)hie+e its *oal and pro+ide ser+i)es to e+eryone. ,estle has no effe)t on pri)es by their )ompetitors be)ause they set their own.They )har*e offardable pri)es to their )ustomers. 5ist of pri)es of some ,estle produ)ts in =a7istan: /erela) baby food RS &%'$ %!! *rms and different +arities ha+e different pri)es$ ,estle Mil7 =a)7 =a)7 RS. &&! per 7*$ 7*$ Ma**i /hi)7en /hi)7en RS.%8 $ ,estle ,estle ,esfruta ,esfruta RS. RS. &!! =er =er &!!! ml$ EitEat /hun7y RS %4'! =er '! *rms pa)7$ ,estle water &0." liter bottle RS .%4! et)
Promotion Federal Urdu University of Arts, Science and Technology Islamabad
,estle has adopted the )hannels for promotion throu*h TD$ TD$ ,ews papers$ ma*azines$ o)tors$and hoardin*s$ personal sellin* and dire)t mar7etin* et) For this purpose nestle issues ads about their produ)ts to t+ )hannels to intra)t with )ustomers and similarly to the newspapers$ they also used hoardin*s on mar7ets or roads to )ommuni)ate with )ustomers. )ustomers. ,estle ,estle also used dir)t mar7etin* for produ)ts$ produ)ts$ )onsumers )onsumers will re*ister re*ister to online ordor than they will pro+ide produ)ts and ser+i)es with in %880 hours. ,estle3s )ompany also uses person sellin*$ sellin* throu*h person to person )ommuni)ations pro)ess. For this purpose )ompany sent their *ood obser+ers in the mar7et to intar)t with the people$ tell them about produ)ts$ fa)e to fa)e )ommuni)ation will help the )ompany to attra)t lar*e mar7e.
I(!
Placement ,estl?3s distribute distribute their produ)ts on world wide s)ale. They are operatin* or salin* their produ)ts in more than &"2 )ountries$ in these )ountries thay sale all o+er re*ardless bi* and and smal smalll )iti )ities es.. For For this this purpo purpose se ,est ,estle le has has its its own own trans transpoa poara rati tin n syst system em$$ they they manufa)ture the produ)ts in fa)tories and transfer produ)ts in re*ional offi)es or sales )enter then pro+ide produ)ts to distributors and retilors.
$ontroling and "valuation a! Forc Forcas asti ting ng Fore)astin* Fore)astin* is used by )ompanies )ompanies to determine determine how to allo)ate their bud*ets for an up)omin* period of time. ,estle$ the world@s lar*est pa)7a*ed foods ma7er$ fore)ast sales to rise ' per)ent p er)ent this year$ in line with its lon*term *oals$ followin* a wea7er year in %!&8 that was hurt by deflation in urope and slowin* demand in Asia. b! .udgeting A))ordin* to annual ,estle3s )ompany report in %!&8$ thay are operatin* in &"2 )ountries ha+in* ha+in* 4$ 4"$ !!! employees. ,estle3s )ompany had sales of "&.1 billon dollars and &8.! billon profit. Total sales in europe %'."9. Ameri)ans 4".89 and Asia > Afri)ia %1.49. t(ey also used hea+y amount on ad+ertisment.In %!&&$ ,estle3s )ompany spent %." billon dollars on media for ad+ertisment purpose.
c! "va "valuat luatio ion n ,estle is world leadin* in nutration$ food and be+era*e industry.In past years they deli deli+e +erd rd best best -ual -ualit ity y prod produ) u)ts ts to thei theirr )uto )utome mers rs., .,es estl tl?? /omp /ompan any y is an international )ompany whi)h )ame to the sta*e it is today by *ainin* superior )ompetiti+e ad+anta*e o+er its ri+als. The fo)us produ)t differentiation strate*y has been +ery su))essful althou*h it may not wor7 for other firms. The )ompany is able to )reate and deli+er +alue not only by offerin* distin*uished produ)ts but also *ainin* effe)ti+eness and effi)ien)y by reen*ineerin* its business../e are sure that ,estl? /ompany will do better in the future than their )ompetitors and mi*ht be the new trendsetter in some )riteria and also *ain its abo+ea+era*e returns to their )ompany. )ompan y.
Federal Urdu University of Arts, Science and Technology Islamabad
