[Year

Marketing Plan
Nestle Pure Life
Nestle Pure Life is Nestls famous bottled drinking water and has made its
customer market in several countries of world. Health conscious societies
consider it as a blessing thinking of it as being purest water available in the
market.

Students
Product: Nestle Pure Life

Company: Nestle

1
Contents

Product: Nestle Pure Life ........................................................................................................ 1

Company: Nestle ...................................................................................................................... 1
INTRODUCTION.................................................................................................................... 3
Nestle - Company Overview .................................................................................................... 3
Nestle Waters A subsidiary ................................................................................................. 4
Nestle Pure Life The Product .............................................................................................. 5
SEGMENTATION & TARGETING ..................................................................................... 6
Segmentation .......................................................................................................................... 6
Target Market ......................................................................................................................... 6
COMPETITORS...................................................................................................................... 7
Main Competitors Competitive Analysis ............................................................................ 7
SWOT..................................................................................................................................... 8
Weaknesses ............................................................................................................................ 9
Opportunities .......................................................................................................................... 9
Threats .................................................................................................................................... 9
CUSTOMERS ........................................................................................................................ 10
Main Customers Customers Analysis ............................................................................... 10
Core Competency ................................................................................................................. 11
Apparent Marketing Strategy .............................................................................................. 12
Recommendations for Strategy Re-vamp ............................................................................ 14
Bibliography ........................................................................................................................... 16

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 INTRODUCTION

Nestle - Company Overview

Good Food, Good Life Nestl is today worlds leading health, nutrition and wellness
company(Nestle, 2012). Nestls mission is to provide the best tasting and nutritious choices
in extensive range of beverages and food categories to its consumers all over the world.
Today Nestle has 67 brands of bottled water, produced in 36 countries and its distribution is
made in 130 countries worldwide(Nestl Waters, 2011).

Nestle traces its origin back in 1866 when Anglo-Swiss Condensed Milk Company opened
the first European condensed milk factory in Cham, Switzerland. One year later, a trained
pharmacist, Henri Nestle, introduced worlds first prepared cereals for infants in
Farinelactee in Switzerland. Both of these companies merged in 1905 to be a company
known as Nestle with headquarters based in Swiss town of Vevey where it started in the
beginning. (Nestle, 2012). Nestls first customer was a premature infant who was unable to
tolerate his mothers milk as well as any other conventional substitutes. Henris effort was to
develop an alternative source of infant nutrition for mothers who were unable to breast feed.
Thus the cereal was prepared with his experiments on various combinations of cows milk,
wheat flour and sugar (Nestle, 2012).

Today Nestle employs around 328,000 people and are managing different factories and/or
operations in almost every country of the World. Nestle sales for the year 2011 came to be
almost CHF 1 83.7 billion (Nestle, 2012). Nestle SA is a publicly owned company with
subsidiaries across the globe. Nestle UK and Ireland, is a subsidiary of Nestle SA (Nestle UK
and Ireland, 2012).

Nestle has built its competitive advantage on the basis of its unmatched geographic presence
worldwide. Sprung from the Swiss cultures, the company grew and managed to establish a
presence in almost every country in the world today. Nestle has developed strong
relationships with farmers and other suppliers with the development of local management
teams, R & D and manufacturing (Nestl, 2012).

1
CHF refers to Swiss Franc

3
Nestle Waters A subsidiary

Nestle Waters North America Inc. started its functions in 1976 as a company that imported its
famous Perrier Sparkling Natural Mineral Water from France. The company tapped in the
opportunity when Americans were looking to adopt a healthier lifestyle with better food
eating and availability of pure drinking water. The companys bottled water products became
popular among those customers who were seeking a refreshing all-natured beverage that
could have been relied to be free of calories, caffeine and additives. People who were
indulged in regular exercise related activities started enjoying bottled water after hiking,
biking, tennis etc. instead of a cocktail. By the early 80s, domestic waters were added to its
product line by the company and thus became a major player in the U. S. bottled water
market. Nestle Waters North America has today recognized as largest bottled water company
in the United States (Nestl Waters North America Inc., 2011).

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NestlePure Life The Product

Nestle Pure Life a Purified Water is bottled water prepared with a unique and appropriate
balance of minerals to deliver the best taste (Nestl Waters North America Inc., 2011).

In 1992, Nestl was the first company to provide mineral water with the brand name of
Valvert. Howsoever, Nestl Water has today grown in 130 countries and markets with 70
different brands. In 1998, Nestl named its bottled water as Nestl Pure Life (Nestle, 2012).

The brand was initially sprung in Pakistan and soon it was launched in Brazil, followed by
Argentina, Thailand, the Philippines, China, and Mexico in 2000. India, Jordan, and Lebanon
followed in 2001 and then in 2002, Egypt, Uzbekistan and then United States. Now the
product (Nestle Pure Life) is present in several countries of all continents i.e. Asia, Near East,
South and North America and Europe with different brand names (Nestle, 2012).

Nestle PURE LIFE offers an ideal balance between a healthy supply of minerals and a
pleasant, refreshing taste, making it suitable for the whole family. It contains essential
minerals such as:

Calcium: necessary for building strong bones and teeth,

Magnesium: necessary for muscle contraction and transmission of pulses.

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 SEGMENTATION & TARGETING

Segmentation

Nestle Pure Life have segmented the product on the following basis:

Psychographic Segmentation
Demographic Segmentation
Geographic Segmentation
Behavioral segmentation

Target Market

After the segmentation of the market, Nestle management has to decide the target market for
each separate segment of the market. A position is the way a firms product, brand, or
organization is viewed relative to the competition by current and prospective customers.
When positioning a product the marketer wants to convey benefits most desired by the target
market.

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 COMPETITORS

Main Competitors Competitive Analysis

Nestle Pure Life has two very strong competitors in the market, which are trying to compete
with Nestls water brand using innovative strategies and approaches. These are:

Aquafina Water is bottled by the Pepsi Co.

The other is Dasani which is bottled by Coca Cola Company.

Pepsis Aquafinas purification of water involves the processes of charcoal filtration and
reverse osmosis. In an effort to have a competitive edge in the market they have extended
their brand to include six different varieties of fruit flavored flat water and two varieties of
carbonated water that are also fruit flavored. Pepsis Aquafina water is also available in
different countries with different brand names. Pepsi has been striving hard to penetrate
Nestle Pure Lifes market with different strategies (Hanson, 2012).

On the other hand, Coca Colas Dasaniprocess their water through reverse osmosis process,
but once the contaminated or other materials are removed they add special blend minerals to
their water which gives its characteristic crisp flavor.They have other flavored brands but the
company has limited itself to four different flavors. Coca Colas bottle water is present in
different countries with different brand names i.e. Kinley water etc.

Although Nestle Waters bottles their product in polyethylene terephthalate (PET), this
material is 100% recyclable and does not have BPA (Bi-Sphenol A) which is known to be
organic compound used to make polycarbonate plastic. This has been declared as toxic. In
addition their bottles are an average of 30% lighter.

Nestle waters has so many brands that they can accommodate even the most demanding
customer. The line of Nestle Pure Life has flat water, flavored water and carbonated water.
Nestle Pure Life is quite different from the Aquafina and Dasani, and Nestle has used
different brand promotion strategies to promote their product. The quality provided by Nestle
Pure Life has built a strong trust and long lasting relationship between company and
consumers of its products.

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 SWOT

Strengths
Nestle is a global food producer with presence in almost all countries. Nestle has been
consistently one of the world's largest food producers with sales of almost CHF2 83.7 billion
in year 2011. Such a strong companys brand image has positive influence and impact for
Nestle Pure Life (Nestle, 2012).

Nestle has been repeatedly recognized as the world's largest company providing bottled water
and have set up facilities to work on water resources ethically.

For the twelfth consecutive year, Nestle has been recognized as one of "America's Most
Admired Food Companies" in Fortune magazine in 2008.

Nestl provides quality brands and products and line extensions that are well-known, top-
selling brands including:

o Lean Cuisine, Yoplait, Maggi, Dryer's/Edy's, Haagen-Dazs, Stouffer's, Boost,

Dibs, Hot Pockets,

o Chocolate and Candy: Kit Kat, Butterfinger, Toll House, Baby Ruth, Crunch
Bar etc.

o Pet Products:Cat Chow, Purina, Alpo, Fancy Feast, Friskies, Tidy Cat.

o Drinks: Carnation, Perrier, Nesquik, S. Pellegrino, Nescafe, CoffeeMate,

Taster's Choice, Juicy Juice.

o General Mills: subsidiary which makes Betty Crocker, Bisquick, Hamburger

Helper, Pillsbury, Old El Paso, cereals, fruit snacks, frozen pizza, canned
soups, frozen vegetables, ready-made frozen meals.

o Gerber: baby formula, prepared baby foods, baby cereals, water, juice, yogurt,
foods for infants, toddlers and preschoolers.

These brands become a source for the brand recognition of Nestle Pure Life and hence the
brand is known and associated along with its other well-known brands for different segments
of the markets.

2
CHF refers to Swiss Franc

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 Weaknesses
There is lack of awareness about using bottled water in the developing countries. Water is
thought to be basic need of human life readily available anywhere. Hence, bottled water is
not seen as a commercial product in the developing countries.

In the developed countries, the branding and promotion of Pure Life Mineral water is not
extensive, therefore competitors get chance to penetrate in the market by fetching substantial
share of the market.

Opportunities
In today's health conscious societies in the developed and developing countries, pure water
can be promoted as basic item for healthy life.

Countries where pure drinking water is not easily available can be tapped and pure and clean
drinking water can be extensively promoted.

Nestle Pure Life can launch new flavors according to the tastes of different regions. These
flavors can be categorized on the different segmentation basis i.e. demographic.

Threats
Nestle Pure Life has threat from the different bottled water companies who have launched
their bottled waters in the developed countries.

They have major competitors, like Hershey's, Cadbury-Schweppes (owned by Pepsi), Lindt
and Ghirardelli, Kellogg's, Post, Starbucks, Beech-Nut, Quaker, Kraft Foods, Dannon, Del-
Monte, Iams, Earth's Best, Heinz, Frito-Lay (owned by Pepsi).

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 CUSTOMERS

Main Customers Customers Analysis

Nestle is the biggest water bottling company in the world with famous brand name of Nestle
Pure Life (Hanson, 2012). This product and its customers can be found in several countries
across the globe. Nestle has bottled water brands around the world but in the United States,
however, the star of the company is the brand Nestle Pure Life. From their numerous
brands Nestle Pure life stands apart for its light taste and affordability. This brand is available
to the consumers as flat, flavored or carbonated water. In addition to the Pure Life brand
Nestle has several natural spring water brands like; Poland Spring, Calistoga, Deer Park, Ice
Mountain, Ozarka and Zephyrhills They also sell mountain spring water with their brand
Arrow Head. In the process to purify and prepare the water for consumers Nestle Bottlers
follows rigorous guidelines as established in each of the countries they sell their products and
in most of the cases exceeding them. Nestle Bottlers not only strive for ways to improve the
quality and taste of their product, but also to develop more efficient and environmentally safe
packaging for their bottled water.

Since 1998, when the brand Pure Life entered the market and in accordance with the Nestle
policy on Environmental sustainability, this company has reduced the plastic in their bottles
making them an average of 30% lighter than the packaging of their competitors. Their bottles
are 100% recyclable. Nestle Bottlers have established also several recycling programs to
ensure sustainability of their business in earths ecosystem.

Nestl Waters have regular programs to introduce and launch new varieties and formats to
meet consumers' changing needs in different markets (Nestl, 2012).

Nestl Waters constantly seek better environmentally-sound production processes. The

research centers based in France are constantly looking for new product packages, designs
and other layout developments in order to best meet the consumers expectations. Nestle is a
global company but strives act locally, meeting each country's needs and expectations.

Nestl is the world's foremost Nutrition, Health and Wellness Company, committed to
serving consumers all over the world.

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Core Competency

Nestle Bottlers do have different brands that come from municipal resources as well as
brands that come directly from natural springs like their brandsAcquaPanna or Comtrex.
However, Consistency has helped Nestle Bottled water in the market to be a giant in the
water bottling industry. Consistent quality, flavor and overall reliability of Nestles Pure Life
product have gained Nestle the loyalty of consumers from all over the World.

Usually, bottled water has many disparagers and the strongest argument in the favor is that
the bottled water is only hyped tap water and nothing else. It is true that most common
bottled water producers use municipal resources. It is also matter of the fact that this water is
processed through extensive quality control processes to remove microorganisms, minerals
and impurities.

Below is the global Food market share graph, where Nestle is at the top (Bar et al., 2004)

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Apparent Marketing Strategy

Nestl is an organization working globally. As the operations of the organization are

extended in almost all countries, it is not doubtless at all the competitive focus must be at the
heart of the companys international strategy. Nestls competitive strategies are closely
affected with foreign direct investment (FDI) in milk, dairy, beverages and other food
businesses. Nestl has an objective to balance sales obtained from low risk and low growth
countries of the developed world with high risk and potentially high growth markets of
underdeveloped or developing countries i.e. Africa and Latin America. Nestl identifies the
potential profits from these high-risk countries, but doesnt take unnecessary risks just for the
sake of growth. This strategy and process of circumventing keeps growth steady while
maximizing shareholders value (Castelar Articles, 2005).

In the markets of developed countries, Nestle has made an objective to grow and gain
economies of scale with the help of investment in other big companies. For example, just
recently, Nestl has given LC1 brand license to the Mller - a massive scale German dairy
producer in Germany and Austria (Castelar Articles, 2005).

In the developing markets, Nestl grows by manipulating ingredients or processing

technology for local conditions, and employ the appropriate brand. For example, in many
European countries most chilled dairy products contain sometimes two to three times the fat
content of American Nestl products and are released under the Sveltesse brand name.

Another strategy that has been successful for Nestl involves striking strategic partnerships
with other large companies. In the early 1990s, Nestl entered into an alliance with Coca
Cola in ready-to-drink teas and coffees in order to benefit from Coca Colas worldwide
bottling system and expertise in prepared beverages.

European and American food markets are seen by Nestl to be flat and fiercely competitive.
Therefore, Nestl is setting is sights on new markets and new business for growth.

In Asia, Nestls strategy has been to acquire local companies in order to form a group of
autonomous regional managers who know more about the culture of the local markets than
Americans or Europeans. Nestls strong cash flow and comfortable debt-equity ratio leave it
with ample muscle for takeovers. Recently, Nestl acquired Indofood, Indonesias largest

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noodle producer. Their focus will be primarily on expanding sales in the Indonesian market,
and in time will look to export Indonesian food products to other countries.

Marketing Strategy

It is expected by marketing division of a company to design a marketing strategyfor each

target market of the product or service, which includes the establishment of the marketing
mix. The Marketing Mix consists of multiple aspects of the following four elements: a
product, its price, where is it placed and how the company is going to promote it? These four
elements are intended to satisfy a target markets needs and on the other hand equally
important marketing objectives for an organization.

The Company's strategy is guided by several fundamental principles. Nestl's existing

products grow through consistent creativity, innovation and renovation while maintaining a
balance in different geographic events and companys other product lines.Nestles Long-term
potential is never sacrificed for pleasing short-term performance.

Nestl is committed to the following Business objectives in all countries, taking into account
local legislation, cultural and religious practices:

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 Nestl's business objective is to manufacture and market the Company's products in such a
way as to create value that can be sustained over the long term for shareholders,
employees, consumers, and business partners.
Nestl does not favor short-term profit at the expense of successful long-term business
development.
Nestl recognizes that its consumers have a sincere and legitimate interest in the behavior,
beliefs and actions of the Company behind brands in which they place their trust, and that
without its consumers the Company would not exist.
Nestl continues to maintain its commitment to follow and respect all applicable local
laws in each of its markets

Across the four dimensions of People, Products, Science and communication, Nestles
strategy can be shown as follows (Bar et al., 2004).

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Recommendations for Strategy Re-vamp

Nestl is one of the largest and most successful food companies in the world. It has
successfully introduced many new products into many different segments of the food and
beverage industry and still has potential to introduce new products in its line of products.
Nestl possess a product, LC1, which is innovative, fairly new in the North American
perspective, provides health benefits for the consumer, while offering a new avenue for
profits for Nestl. Nestl, with its probiotic cultures found in its LC1 product, has an
innovation that is ripe to be introduced into the North American market. Currently LC1 is
primarily offered in Japan and Germany in the form of yogurts, with great degrees of success.
Unfortunately LC1 yogurts were unsuccessful in a number of European markets, including
France and The United Kingdom. Nestle can work on improving the unsuccessful LC1
products in these markets in order to create a good image for the Nestle waters.

Nestle waters can have extensive marketing and promotional campaigns in the developing
and under-developed countries where focus is less on the health related issues.

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Bibliography

Bar, D., Pinheiro, S., Rebiero, P. & Turpenien, J., 2004. The Future in the Food Markets:
Nestle vs Unilever. Project. UBI.

Castelar Articles, 2005. Nestle's Competitve Strategy. [Online] Available at:

http://articles.castelarhost.com/nestle_competitive_strategy.htm [Accessed 8 April 2012].

Hanson, M., 2012. Nestle Waters: Water Delivery Service Review, Competitors & Coupon
Code. [Online] Available at: http://water-delivery.knoji.com/nestlewaters-review-and-promo-
coupon-code/ [Accessed 9 April 2012].

Nestle UK and Ireland, 2012. About us. [Online] Available at:

http://www.nestle.co.uk/aboutus/Pages/about-us.aspx [Accessed 8 April 2012].

Nestl Waters North America Inc., 2011. Nestl Pure Life. [Online] Nestl Waters North
America Inc. Available at: http://www.nestle-watersna.com/pdf/NPL_BWQR.pdf [Accessed
8 April 2012].

Nestl Waters, 2011. Nestl Waters 2011. [Online] Available at: http://www.nestle-
waters.com/Content/pdf/2011_yearbook.pdf [Accessed 8 April 2012].

Nestle, 2012. About us. [Online] Available at:

http://www.nestle.com/AboutUs/Pages/AboutUs.aspx [Accessed 8 April 2012].

Nestl, 2012. Global Presence. [Online] Available at:

http://www.nestle.com/AboutUs/GlobalPresence/Pages/Global_Presence.aspx [Accessed 8
April 2012].

Nestle, 2012. History. [Online] Available at:

http://www.nestle.com/AboutUs/History/Pages/History.aspx [Accessed 8 April 2012].

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