Group 8 BBA-F Members: Asif Sardar Ali

Muhammad Shoaib Umme Rubab

Zia Ur Rehman

Marketing Presentation

Contents• Introduction• History• Marketing Mix • Segmentation• Targeting• Positioning• Competitive

Strategy• Conclusion

• Nestle is the largest food

company of the world and 5th largest company overall.

• Annual sales in 2009 were $120 Billion.

• Nestle has almost 6000 brands and 450 factories worldwide.

• Its business segment includes Milk, Cereals,coffee,Mineral water, Juices, ice cream, chocolates, etc

• Nestle’s famous brands are Milk Pak, Nescafe, Cerelac, Nido,KItKat etc

• Haleeb Foods is one of the leading local packaged food companies of Pakistan.

• Its operating in following business segments UHT Milk, Cream, Juices, Powdered milk and butter.

• Haleeb foods core business is milk and related dairy products.

• Haleeb’s main market is Pakistan but it also exports food products toSouth Asian and middle east countries.

History

• Nestle was founded by Henri Nestle in 1867

• 1905 Anglo-Swiss condensed milk Company merged with Nestle to form Nestle-Anglo Swiss condensed milk company.

• 1977 current name Nestle was adopted.

• 1988 Nestle started its business in Pakistan by the acquisition of Milk Pak Limited.

• 2007 Worlds largest Milk collection plant was established at Kabirwala Pnjab.

• Haleeb Foods started its business in 1984 with name Chaudhry Dairies Limited near Lahore.

• 1989 established equity partnership with CC Friesland.

• 1998 entered in franchise agreement with Cedilac France.

• 2004 Changed its Corporate name to “Haleeb Foods”

• 2004 started its fruit juices business under “Tropico Nectar” brand.

• 2005 another production plant established at Rahim Yar Khan.

Marketinng mix

4 Ps:

• Product• Price • Promotion• Placement

Product

• Nestlé’s products are very wide spread in range. Nestle has almost 6000 brands.

• The products includes: milk coffee, bottled water, cereals, infant food, beverages, chocolates, yogurt, cream

• MilkpakKit Kat,Crunch, Milkybar/Galak, Tollhouse

• Nestea, Nescafé, Taster’s Choice, Nesquick, , Libby’s

• Deer Park, Ice Mountain, Pure Life, etc

Product• Haleeb foods’ different segments includes

UHT Milk,Dairy products and Juices.

• Main Brands of Haleeb are:

• Haleeb Milk, Dairy queen, N’rish,,Good Day,,Tropico Nectar, Skimz etc

PRICE

Flexible prices are the key factor of success of Nestle in global markets while maintaining its quality.

• Their marketing strategy includes a wide range of pricing strategy, and by doing this they can maintain their product rates at a sustainable position.

• fruit juices are affordable to low economy class and expensive tin packed beverages are also doing business in the market.

• Bulk purchase discount is also provided at the whole sale markets as well as at the market stores.

•

• Haleeb Foods products are priced keeping in view the buying power of middle income and high icome social classes of society.

• Haleeb Foods shares a justifiable percentage with retailers to maintain and expand its market share.

• price variations are also made at religious festivals

• Bulk purchase discount is also provided at the whole sale markets.

Place

• Nestle is running globally, its setup being run in 86 countries. So, the sales are also done globally .

• Nestle has a very strong supply chain network.

• Nestle products are available in almost all countries of the world.

• In Pakistan Nestle products are mainly consumed in Urban areas.

• Nestle products are available in almost every retail and whole sale shops in Pakistan.

• The main focus of Haleeb Foods is Pakistani market but exports are also made to South asian and middle east countries.

• Haleeb foods’ products are available in all over Pakistan but it don’t have a very well planned distribution network as compared to its competitors.

• The non-dairy products of Haleeb are mostly consumed in Urban areas.

Promotion

• Nestle gives utmost importance to marketing. In 2009 Nestle’s annual advertisement expenditure was $2.62 Billion making it world’s #5 top advertiser.

• Promotion strategies of the company

are very well planned and they always pay multiples of the expected amounts. Advertisement is done on electronic and print media along with sign boards and e-marketing.

• Nestle’s limited economy offers boost up the popularity of brand especially in the case when new induction to the market is made.

• Advertisement by Tetra Pak is also indirectly contributing to promotion of Nestle’s Products

• Haleeb Foods lacks a consistent promotional strategy.

• Advertisement is done through electronic and print media but also much focus is on sign boards

• There is almost no e-marketing by Haleeb Foods.

• Festival based promotion is very common by Haleeb Foods.

• Advertisement by Tetra Pak is also indirectly contributing to promotion of Haleebs Products

Segmentation

• Geographical:Nestle provide huge range of products mainly for urban areas population.

• Demographic:(i)-Nestle product: Mainly designed to cater the needs of middle and upper class families based on income

(ii)Age: nestle has huge range of products for all age groups from kids to old people

• Geographical: Haleeb main focus is on urban areas

urban areas of Pakistan but for its milk sector it also focuses on rural areas

• Demographic: (i)-Income: Haleeb products are

mainly designed to meet the needs of middle and upper class families

(ii)-Age: Haleeb do not have any baby food products to serve the child population. Its mainly focus on youth and mature segment of market

Targeting

• Nestle targeting is based on differentiated marketing

• They manufactures separate products for each segments customers

• Haleeb targeting is based on undifferentiated marketing

• They do not manufacture separate products for different segments customers

Positioning• “Khalis he sub kuch hai”,

• “Good food Good life”,• “Banaye Mazboot gharana” • “Jaan banao”.

• Nestle’s strategy made room for it in getting through all potention segments of the market & building strong brand loyalty

• “Chai banye khob haleeb”

• Haleeb has been positioning its product by usage.

• “Brings you the best”• Haleeb positioning is not so affective

as compare to nestle.

• Haleeb lacks strong brand loyalty.• For example for its milk sector: it only

focused on tea usage

”

Competitive Strategy• Nestle main competitors in

Pakistan are engro foods,Haleeb Foods

• Nestle is focusing on all food segments

• Nestle maintain and extends its market share by following brand extension.

• Haleeb’s main competitors in Pakistan are engro foods and Nestle.

• Haleeb Foods main focus is on dairy segments

• Haleeb adopts line extention strategy to maintain its market share

Conclusion• We have taken nestle as standard because it has greater market share and huge

variety of products.• We chose Nestle & Haleeb Foods because we wanted to compare a multinational

and a local company.

• Nestle is growing its market share by more focus on advertisement and brand extension. Haleeb is far behind nestle this context that’s why its market share is less than Nestle.

Questions