ACKNOWLEDGEMENTS
In the Name of Allah The Most Beneficent, The most Merciful Firstly we would like to thank Allah Almighty for giving us time, opportunity and the energy for the completion of this project within the prescribed time. We are highly obliged to Mr. Adeel Anwar for his kind guidance throughout the course .His assistance and moral has helped us in understanding the concepts of Brand Management and has instilled in us fervor, enthusiasm and vigor. We extend our gratitude to all the people who have been a source of direct or indirect help especially Mr. Saad Arshad, Key s Manager and Mr. Sajid Rizvi, Sales Executive at Nestlé for their immense amount of patience, time and in the course of the project. We are highly grateful to all those individuals who cooperated with us and took out time from their busy schedules to fill in our questionnaires. Last but not the least we are thankful to our families and friends who ed us even at odd timings to complete our research.
BRAND MANAGEMENT
BRAND AUDIT REPORT Submitted to Mr. Adeel Anwar
Submitted by Rushda Khan
(05-0366)
Anam Mahmood
(07-0413)
Muhammad Ali Hanif
(06-0350)
Nouman Ali
(08-0318)
Hassan Tariq
(07-0379)
ACKNOWLEDGEMENTS
In the Name of Allah The Most Beneficent, The most Merciful Firstly we would like to thank Allah Almighty for giving us time, opportunity and the energy for the completion of this project within the prescribed time. We are highly obliged to Mr. Adeel Anwar for his kind guidance throughout the course .His assistance and moral has helped us in understanding the concepts of Brand Management and has instilled in us fervor, enthusiasm and vigor. We extend our gratitude to all the people who have been a source of direct or indirect help especially Mr. Saad Arshad, Key s Manager and Mr. Sajid Rizvi, Sales Executive at Nestlé for their immense amount of patience, time and in the course of the project. We are highly grateful to all those individuals who cooperated with us and took out time from their busy schedules to fill in our questionnaires. Last but not the least we are thankful to our families and friends who ed us even at odd timings to complete our research.
CONTENTS Executive Summary
02
History of Nestlé
03
Brand Hierarchy
05
History of Nestlé MilkPak
06
Boston Consulting Group Matrix
07
Competition
Competitive Positioning Matrix Competitive Profile Matrix
08 09
Nestlé MilkPak’s Micro Environment
Porter’s Five Forces Model
Market Situation Analysis
10 12
Brand Inventory
Brand Identity Brand Positioning Marketing Mix Brand Elements Branding Decision Making Process
14 16 19 25 27
Brand Exploratory
Customer Based Brand Equity Pyramid
31
Recommendations
34
Bibliography
36
Appendix
ILLUSTRATIONS
Figure-1 Situation of the Market of “Milk” s
12
Figure-2 Market Share of Packaged Milk Brands
17
Figure-3 SKUs of Nestlé MilkPak
19
Figure-4 Product Life Cycle of Nestlé MilkPak
20
EXECUTIVE SUMMARY
This report is the Brand Audit of the Famous Brand of Nestlé that is Nestlé MilkPak. This report highlights the major branding concepts of Nestlé MilkPak, it introduces the product and its brand elements and moves onto explaining more concrete concepts further into the report. It contains a detailed analysis of the Brand Inventory and then checks the match of that with the Brand Exploratory through which it explains any mismatch between the two or if the brand has been able to translate its core values to the consumers. Along with the entire analysis of the core concepts and the surveys, the reports ends with certain valuable recommendations which can be implemented by the brand to realize it’s very potential. We have attached a softcopy of the report form the coding sheet of our questionnaire results in the form of a CD.
HISTORY OF NESTLÉ
1866-19751 In the 1860s Henri Nestlé, a pharmacist, developed a food for babies who were unable to breastfeed. His first success was a premature infant who could not tolerate his mother's milk or any of the usual substitutes. In 1905 Nestlé merged with the Anglo-Swiss Condensed Milk Company. By the early 1900s, the company was operating factories in the United States, Britain, and Spain. The 1920s saw Nestlé's first expansion into new products, with chocolate the Company's second most important activity The end of World War II was the beginning of a dynamic phase for Nestlé. Growth accelerated and companies were acquired. In 1947 came the merger with Maggi seasonings and soups. Crosse & Blackwell followed in 1960, as did Findus (1963), Libby's (1971) and Stouffer's (1973). Diversification came with a shareholding in L'Oréal in 1974.
1975-2002 Nestlé made its second venture outside the food industry by acquiring Alcon Laboratories Inc..Nestlé divested a number of businesses1980 / 1984. In 1984, Nestlé's improved bottom line allowed the Company to launch a new round of acquisitions, the most important being American food giant Carnation.There were two major acquisitions in North America, both in 2002 in July, Nestlé merged its U.S. ice cream business into Dreyer's, and in August an acquisition was announced of Chef America, Inc.
1
http//www.nestle.com/AllAbout/History/HistoryList.htm
2003 Till Date The year 2003 started well with the acquisition of Mövenpick Ice Cream, enhancing Nestlé's position as one of the world market leaders in this product category. In 2006, Jenny Craig and Uncle Toby's were added to the Nestlé portfolio and 2007 saw Novartis Medical Nutrition, Gerber and Henniez the Company.
Mission Nestlé is dedicated to provide the best foods to people throughout their days, throughout their lives, throughout the world. With their unique experience of anticipating consumers’ needs and creating solutions, Nestlé contributes to the well being of consumers and contributes to their lives.
Vision Vision of Nestlé MilkPak Pakistan is to expand business according to the increasing demand of market. As per Nestlé’s vision in 2020 production capacity of all plants working in Pakistan is being increased. The company has already started extension of its Kabirwala Plant to operate on an even larger scale.
Corporate Culture The corporate culture at Nestlé is very open and informal. Employees are welcoming and gracious towards each other but also quite competitive when it comes to work. Whenever there is a job opening, 8-10 people are lined up for the position from within the company. Disputes or conflicts within firm are solved with the cooperation of top level management. In case of a conflict, it is resolved by going up the ladder and the persons involved can even go abroad to resolve the conflict if it takes that. Employees accept changes in technology easily. They are flexible and work long hours when needed.
BRAND HIERARCHY
HISTORY OF NESTLÉ MILKPAK
Nestlé entered Pakistan in 1984, when the parent company, the Switzerland-based Nestlé SA, first acquired a share in MilkPak Ltd. MilkPak is a standardized UHT milk that benefits from Nestle’s expertise in bringing you the very best in health, wellness and nutrition.
MilkPak is a trusted brand known throughout the country for its nutritious wholesome goodness and pure natural taste. To secure a happier and healthier future for your family, you need the of a strong partner like MilkPak, now fortified with extra strength of Iron, Vitamin C and Vitamin A that helps keep you and your family strong.
Iron as an essential mineral helps in the formation of healthy blood and strengthens your immune system. Vitamin C helps the absorption of Iron in the body and Vitamin A is important for clear vision.
BOSTON CONSULTING GROUP MATRIX
Nestle Milkpak is a Cash cow. It has high market share and low market growth. Thus it’s milking all the cash and profits out of its existing customers but the rate at which it’s sales are growing is declining.
COMPETITION Competitive Positioning Matrix
Nestle is definitely leading the market. Its investments in R & D are huge and it’s at the forefront of all major innovations in the packaged milk industry. This makes its product innovations quite high. As for market entry, we all know Nestle Milkpak is a pioneer product in the packaged milk market. Market entry in the packaged milk industry is usually low.
Competitive Profile Matrix Competitive profile matrix is an essential strategic management tool to compare the firm with the major players of the industry. Competitive profile matrix shows the clear picture to the firm about their strong points and weak points relative to their competitors. The competitive profile matrix for the packaged milk is as follows ( Milk pak, Haleeb and Olper’s are used)
MilkPak Critical
weight
Rating
Success
Olper’s
Haleeb Weighted
Rating
score
Weighted
Rating
score
Weighted score
factors Advertising
0.2
4
0.8
2
0.4
4
0.8
Product quality
0.1
3
0.3
2
0.2
4
0.4
Competitiveness
0.1
3
0.3
1
0.1
3
0.3
Financial
0.1
4
0.4
2
0.2
3
0.3
0.2
3
0.6
1
0.2
4
0.8
Market share
0.2
4
0.8
1
0.2
2
0.4
Price
0.1
2
0.2
2
0.2
2
0.2
Total
1.00
position Customer Loyalty
3.4
1.5
3.2
The results clearly show that Milkpak is ranked the highest according to the matrix, Olper’s second highest and Haleeb the lowest. It is also important to note that difference between weighted averages of Olper’s and Milkpak is quite low (0.2). This is an indicator for Nestle milkpak that it’s in for fierce completion with Olper’s. Olper’s is one of the biggest emerging threats for Nestlé.
NESTLÉ MILKPAK’S MICRO ENVIRONMENT Porter’s Five Forces Model Competition Nestlé faces tough competition when it comes to the “Packaged Milk” market.
Its major
competitors include Olper’s having the second largest share in the market, followed by Haleeb and GoodMilk. These competitors though few but constantly force MilkPak to continue differentiating for it retain its customer base and strive for acquisition of more Customers.
Threat of New Entrants The threat of new entrants is high primarily because the entry barriers to this industry are very low due to low infrastructure costs Another factor that increases the threat of new entrants is that “Tetra Pak” also sells machinery for the industry enabling others to be customers of Tetra Pak, they have trained sales force comprising of engineers that are on the lookout of potential investors. Now this factor adds to the chances of more people ing in. Though being the market leader with 60% market share, these new entrants always continue to pose a threat to the Brand.
Buyer Power Being a commodity brand, the buyer power is quite high as the chance of switching by the customers is high. The brand has to continuously strived to maintain its share in the market as there are many substitutes available in the market like Olper’s ,Haleeb ,GoodMilk and other brands of Packaged milk.
Supplier Power Since MilkPak does bulk buying so it purchases major chunks by its suppliers like TetraPak. They cannot afford to lose such a significant portion of their sales. This reason makes the supplier power significantly lower.
Substitutes MilkPak has many substitutes available in the market, which include packaged milk brands namely, Olper’s ,Haleeb, GoodMilk, Nirala etc. These milk brands give MilkPak a tough competition hence making the brand continuously devise strategies to continue differentiating.
MARKET SITUATION ANALYSIS
Figure-1 Situation of the Market of “Milk” s
The market of “Milk” s consists of 2% of “Packaged” milk s and 98% of the “Non Packaged Milk” s which identifies a potential of 98% as that is the “Untapped market”. The 2% market share is the one for which all the Packaged Milk brands are competing, with an unexplored potential equivalent to 98%. The Packaged Milk brands which cater to the 2% of the market of Packaged milk s include Nestlé MilkPak established as the “Market Leader” followed by Olper’s , Good Milk and Haleeb. There are other brands like Prema and Nurpur that also come under the “Packaged Milk” category
BRAND INVENTORY 2
2
The purpose of the brand inventory is to provide a complete, up-to-date profile of how all the products and
services sold by a company are marketed and branded
BRAND IDENTITY “NHW” Concept The brand translates and works around the NHW concept for the marketing and positioning of its product. The concept translates three values that are of Nutrition Health and Wellness through its product and ment campaigns. These are the core values that brand promises to deliver to its consumers and want them to indentify these values with the brand. Every advertising campaign that Nestlé launches translates the same values of the brand. This process takes place every six to eight months. In doing so the brand has a tool that it uses to test every change that they plan to implement in the product. Since the NHW concept is the core concept of developing the Brand Identity and creating a certain perception of their product, the following concept is applied
60/40+ Concept- Making It Happen The 60/40+ concept is an expression of the Nestlé vision of Nutrition, Health and Wellness. Increasingly consumers are looking to food to provide nutritional and health benefits - not at the expense of taste but in addition to it.Nestlé aims to make MilkPak achieve at least 60% consumer taste preference with the added 'plus' of nutritional advantage. This means that in rigorous market testing 6 out of 10 consumers prefer Nestlé MilkPak to a competitor's equivalent. It also means that they are always thoroughly in search for ways to add that nutritional 'plus'.
Key to this process is the nutritional assessment of Nestlé MilkPak. Nutritional assessment is carried out by R&D nutritionists and generally compares Nestlé MilkPak with the main competitor product. The nutritional assessment examines the levels of nutrients and the value of key ingredients in our products. The assessment identifies nutritional strengths and weaknesses, and provides direction for product improvement leading to nutritional superiority.
Ultimately, the consumer is the winner with a tested process in place to continually improve the nutritional value of foods they prefer. 60/40+ drives innovation and renovation of Nestlé MilkPak with the consumer at the center.
\
BRAND POSITIONING
Brand Positioning (as defined by Kotler) is “ an act of deg the company’s offer and image so that it occupies a distinct and valued position in the target customer’s mind”. It cannot be fully explained until we define the following four factors
Target market
Nature of competition
Points of parity
Points of difference
Target Market Demographically, the target market for Nestlé MilkPak is based on gender and occupation. As it’s packaged milk and the grocery is usually done by housewives therefore the products target market is that of housewives, as they are the key decision makers. The income group targeted by Nestlé MilkPak is that of SEC A and B, that include, middle-middle, upper- middle and upperupper/ elite classes. The income of these classes starts from Rs.40000/- on a per month basis. Since they build their marketing campaigns on the Nutrition Health and Wellness Concept therefore psychographic ally they have targeted people who aim at healthy lifestyles and are Quality conscious.
Nature of Competition Nestlé faces tough competition when it comes to the “Packaged Milk” market.
Its major
competitors include Olper’s having the second largest share in the market, followed by Haleeb and GoodMilk. These competitors though few but constantly force MilkPak to continue differentiating for it to retain its customer base and strive for acquisition of more customers. The following pie chart shows the market share for each packaged milk brand.
Figure-2 Source Mr. Saad Arshad (Key s Manager Nestlé)
Points of Parity All the packaged milk brands offer the basic commodity; milk. At the product level Olper’s, Nestlé, Haleeb, Goodmilk etc have the function of fulfilling the nutritional needs of their clients and also they are used in making several desi beverages (tea, lassi, milkshakes,) .Therefore these following factors fulfill the basic needs of the consumers equally creating a point of parity amongst all.
Points of Difference Since all the packaged milk brands are similar at the basic or core product level therefore Nestlé MilkPak has differentiated itself from its competitors on the basis of adding nutritional value for its customers. Like the addition of “Vitamin A, C and Iron “only in Nestlé MilkPak which are non existent in any of the other milk Brands. These points of difference which make Nestlé MilkPak extend its PLC and continue to outperform and maintain its market lead.
Marketing Mix
Product The product exists in the following SKUs 1000ml 500ml 250ml
________________________________________________________ Figure-3 SKUs of Nestlé MilkPak
Product Life Cycle Product life cycle is the course of a products sales and profits over its life time. It involves four distinct stages.
Introduction
Growth
Maturity
Decline
Nestlé MilkPak was first launched in 1984 in Pakistan. At that time MilkPak was the first packaged milk brand that was sold in tetra pack packaging. From 1984 to 2005 MilkPak performed very well in the Pakistani market and hence became the market leader in the packaged milk category. In this period it also captured a lot of share of its rival’s i.e, Haleeb. After this immense growth MilkPak as a brand reached its maturity stage in 2007, this was taken seriously by the company and hence they changed some composition of the milk by adding iron and vitamin A, C in it to prevent a decline of the brand. Now the Brand though is growing but at a decreasing rate.
___________________________________________________________________________ Figure-4 Product Life Cycle of Nestlé MilkPak
Price Competitive Pricing MilkPak is charging very reasonable prices as the profit margins are not high in this industry and is delivering high quality at competitive prices in order to maintain its market share. SKUs
PRICE3
1000ml
Rs. 62
500ml
Rs.34
250ml
Rs.17
Placement The product is available readily at all shops of any magnitude and location. Everyone has access to Nestlé MilkPak and there is never an issue of availability to any consumer. Nestlé MilkPak is practically available at all stores listed as under. They include
Mom and Pop Stores Mom and Pop stores are “Karyana” shops located in local vicinities catering to the local needs of smaller areas. They are generally run on a very small scale
Convenience Stores All the convenience stores built with gas stations operative round the clock provide Nestlé MilkPak and hence many people can reach the product 24/7. Hence creating no availability issues at any time during the day. 3
As per 23 April 2010
Khokhas and Panshops Nestlé MilkPak is even available at local panshops and khokhas on the street corners and made on a very small scale.
Departmental Stores Departmental stores like Al-Fatah, HKB, Jalal Sons, Potpourri etc are also another access to Nestlé MilkPak.
Hypermarket Hypermarkets like Metro Cash and Carry and Makro are also location where Nestlé MilkPak is available for bulk buying.
Channel Strategy The various channels involved in their Supply Chain are, Wholesalers, Retailers and Customers and Nestlé’s Suppliers that include Tetra Pak and Milk Supplying agents. The Distribution channel appears as the following and involves the following middle parties;
\
Promotion Nestlé MilkPak marketing communication is all about focusing on health conscious people. For this purpose, Nestlé has employed both above the line and below the line promotion.
Above the Line Promotion It stands for Promotion in the media (e.g. TV, radio, newspapers, Internet, Mobile Phones, and, historically, illustrated songs) in which the r pays an advertising agency to place the ad. 1. ments 40 % of Nestlés’ ments are focused on conversion of milk s to packaged milk and 60 % is to specifically target towards MilkPak usage communication mix. 2. Television Every new ad campaign for MilkPak goes through a prelaunch research stage which is approximately six months long and involves consideration of 250 variables. MilkPak Ad’s reflect its NHW concept. They usually show a happy, healthy family. Some Ads (such as the one for the addition of iron) exhibit the functional qualities of MilkPak . MilkPak follows an aggressive marketing campaign on TV in Ramadan and other times of the year e.g. Eid.
special
3. Print Media Almost 5% of the entire advertising budget is spent on print media. MilkPak Ads are placed on the finest newspapers of Pakistan; newspapers such as Jang, The news & Dawn often have its Ads on their first page. Along with that Nestlé Milk is also d in Sunday and kids magazines. 4. Internet Nestlé MilkPak has a well designed website which gives thorough information about MilkPak. Also there is an increasing emphasis on blogging on internet forums. This stimulates consumers interactivity with the brand.
Below the Line Below the line promotion can be divided into in store and in house promotion. 1. In store In store promotion refers to point of purchase advertising. It Includes gondolas, merchandise space and posters. 2. In house It includes interactive sessions carried out in peripheral areas. The aim of promotion is to increase awareness about MilkPak in such areas.
In house
BRAND ELEMENTS Brand Name Nestlé MilkPak is a memorable, meaningful & measurable name. Our survey suggests it is liked by most of its consumers.
Logos and Symbol New Logo
Old Logo
In the old logo The brand name Nestlé is written quite bigger than the sub brand Milk Pak. The reason for this is that at that time MilkPak itself hadn’t established it’s foothold in market as a distince brand. However as MilkPak’s awareness increased the tag of Nestlé was reduced and gone in background and Milk Pak became more prominent. Moreover “the flower” as a dot of “I” was replaced by a simple “I” which made it more attractive and unique.
Slogans Bharosa
It arouses a sensation of trust, sincerity, integrity and credibility among the target market.
Banaye Mazboot Gharana This slogan is targeting typical housewives who cares for her children and spouse.
BRANDING DECISION MAKING PROCESS Nestlé is one of the most renowned brands worldwide. Its brand equity is worth billions. Therefore, making any branding decision requires great precision and consideration. A problem/opportunity is first reported to the branding department of Nestlé. Following are some of the key stages that than take place
Market Research This is a preliminary stage in which all facts and information about the problem at hand are uncovered. All the information relevant to the task is collected through extensive research. Both internal and external market research is used
Internal Market Research
Internal market research involves the efforts made within the company in conducting research. This involves the branding and marketing department of Nestlé.
External Market Research
In some cases Nestlé may need to commission an external research company, as resources may
need to be supplemented or additional skills are needed to understand
the findings of the research. For this purpose it outsources its research to a credible company.
Findings Shared With Executives At this stage all the findings from the first stage are reported to the people at the top of the hierarchy. Their consultation and eventually their approval is imperative before going on any further into the branding process. The essence of the entire branding process is “Let’s explore and capitalize on opportunity”
Motivation to carry on with this essence is provided at this stage of the process. The Managing director (MD) approves the findings and allows the branding department to further continue with the task. Without MD’s approval the issue is either dropped or more research is done and findings are reported again.
Validate Research The research is further validated by making use of market research techniques such as
Focus groups Three to five people group are made focus of the research
Consumer A group of consumers are made a part of the research and asked multiple questions about the problem at hand from time to time.
Again, external and internal sources are used to validate the research. Verification of the research is crucial so that all errors and possible bottle necks are identified and removed.
Advertising Agency An Ad agency is than employed. Their skills and expertise have helped Nestlé immensely in gaining the market power that it today has. The Ad agency currently employed by Nestlé is “Lowe & Rauf”. Along with branding department within Nestlé and with the help of Ad agency different creative directions are discussed.
Funnel Ideas At this stage all the brainstorming is done and the best of all ideas are finalized. The rest filtered. This is done with the cooperation of Ad agency.
Approval of Idea Of all the ideas finalized, the best one is picked. This idea is sent for approval in the upper hierarchy and the progress then takes place
Budgeting and Finance As the name suggests, this stage involves all the numbers involved with the execution of the finalized idea. All the costs, profitability and Performa statements are drawn to check the viability of the idea.
Implementation After the budgeting has been done the idea is ready to be implemented. Execution of the idea takes at this stage.
BRAND EXPLORATORY
4
The brand exploratory is research activity designed to identify potential sources of brand equity.The brand exploratory provides detailed information as to what consumers think of and feel about the brand.
4
CUSTOMER BASED BRAND EQUITY PYRAMID
Brand Salience5 Nestlé MilkPak has has a high depth and breadth of awareness, therefore making it a highly salient brand. When the consumers were asked to recall the brands of packaged milk m 72% of the consumers were able to recall it first. This clearly shows that the brand has a high level of awareness and recall in the consumers identifying the product, its logo and other elements quickly.
Brand Performance At the basic ingredients level, Nestlé MilkPak is highly satisfying for the consumers as it is ssatisfying in of Taste , Quality and purity. The consumers are seen to associate these attributes with the brand as compared to other packaged milk brands. Even the brand was most preffered amongst the family, colleagues and friends of the respondents. However the consumers 5
The data to substantiate these facts is given in the appendix
seemed disatified by the packaging and advertisments of Nestlé MilkPak as opposed to other brands. They believed that Olper’s had a better tagline and Logo.
Imagery Nestlé MilkPak has been positioned in the minds of the consumers that they call their target market and that includes primarily housewives. These housewives are who are the ones who make the actual purchase decisions while shopping for grocery. Its ments depict the lifestyle of a typical housewife who takes care of her family and thus provides comfort. Nestlé MilkPak is a brand that brings comfort and satifaction in of quality and purity as opposed to other Packaged Milk brands.
Judgements Nestlé MilkPak has maintained a high quality image due to its performance and strong image of the parent company. This fact has been backed up by our survey as people associate the brand with high quality and purity. It differentiates itself from other packaged milk brands by its addition of Vitamin A, C and Iron; because of this feature it makes the brand superior to other brands. Nestlé MilkPak has high credibility Nestlé is an innovative, trustworthy and likable company because it invests in R&D on a regular basis, regularly conducts marketing research to keep consumers view in mind and always gives consumers good value for money.
Feelings The brand building feelings associated with Nestlé MilkPak according to the company are Trust and Satisfaction. The brand makes the consumers enlightened and energized and it makes them feel that they are experiencing something new and special. A number of ads depict the same feeling of trust and satisfaction as clearly evident from their new ad campaign “Bharosa” .
People have very positive feelings about the brand name and the values it communicates to the people in general. As per our survey 92% of the feelings were associated with Nestlé MilkPak.
Resonance The brand loyalty of Nestlé MilkPak is very strong even though it’s an FMCG but people in our survey seemed to be extremely loyal to the brand. They believed that if MilkPak was not available they would search for it as they believed it gave them the best value for their money. Also the taste and purity the brand offered was unmatched to other packaged milk brands. Though there are other packaged milk brands available in the market but brand switiching was not a very regular phenomenon noticed. People who used Nestlé MilkPak continued to use it since years.
RECOMMENDATIONS After having completed our research, based on our findings and our comparison to the progress factors of Olper’s we recommend the following courses of action for Nestle MilkPak
Redefinition and Broadening of Target Market Nestle should aim at broadening its target market from only housewives to females be it housewives, working women or young females. Attracting a larger audience through their ment campaigns would enable Nestle to capture a wider base of customers. Since lifestyles are changing and more and more women are becoming a part of the workforce, therefore they fail to identify with and connect to a housewife. Hence the message of the brand to consumer is lost due to that loss in connectivity.
Increase In Frequency of ments Milk Pak should aim at increasing the frequency of their ments aired on television, radio and newspapers. The more the ments the more the customers are able to recall the brand as compared to its competitors.
Frequent Change of ment Campaigns Nestle should like Olper’s rapidly change its ad campaigns. Olper’s has different ad campaigns for different occasions like Ramazan etc where it is able to capture the attention of many new consumers by its creativity. Nestle should follow the same strategy to enhance and build a creative edge.
Aggressive In House and In Store Advertising Nestle should do aggressive In House and In Store Advertising. In House advertising is when Nestle reaches to various areas and introduces its product to a group of people consequently creating awareness and encouraging people to purchase it .These tactics will grasp the attention of many potential consumers towards their products. This will not only help to regain the lost market share but to further increase the market share.
Celebrity Endorsements Nestle should not rely too heavily on its brand image rather it should use Brand Ambassadors like different celebrities to endorse the Brand like Olper’s does for example its latest commercial includes four of the morning show hosts namely , Nadia Khan, Dr Sana Tariq, Ayesha Alam and Ayesha Sana. Celebrities always have a lasting impact on the consumers’ minds and help increase brand awareness and Brand recall.
Revamp Packaging/ Make Packaging More Attractive Packaging should be revamped, as a major reason seen for brand switching is the attractive packaging done by Olper’s. Since the packaged Milk Brands share the same shelf spaces in Retail stores it is extremely important to have a matched packaging. Olper’s stands out on the shelf as opposed to any other “Packaged Milk” Brand. Even in our research when we asked people to associate a color with “Packaged Milk” majority recalled the color “Red”.
BIBLIOGRAPHY
Mr. Saad Arshad, Key s Manager. Nestle
Mr. Sajid Rizvi, Sales Executive, Nestle
Nestlé’s history, Retrieved April 19’2010 from http://www.nestle.com
Nestlé’s Logos and Symbols, Retrieved April 22’2010 http://portal.tugraz.at/portal/page/portal/Files/i3210/Projekte%20und%20Industrie/logo_ Nestle.jpg
Nestle Company Information, Retrieved April 13’ 2010 http://www.nestle.co.jp/japan/e/global/brands.asp
Nutrition Health and Wellness, Retrieved April 14’2010 http://www.nestle.co.jp/japan/e/global/well-being.asp
APPENDIX
Location: __________
Date: ______________ QUESTIONNAIRE
We are students of Management Sciences’ Department at FAST- National University of Computer and Emerging Sciences and doing a course project on the Brand Audit of Packaged Milk Your information provided will be very helpful for us in analyzing and completing our project. We ensure you that the information you provide will be kept confidential and will be used for the research purpose only. Thank you for taking out time for this survey. ) When you recall “Packaged Milk” which brands come to your mind (Kindly mention in the order they come to your mind)? a) _____________________ b) _____________________ c) _____________________ 2)When you recall “Packaged Milk” What color comes to your Mind? ________________ 3) Have you ever used “Packaged Milk”? a) Yes
(1)
b) No
(2)
If “No” Kindly End the Questionnaire 4) Which packaged milk brand is more used in your circle of friends/family and colleagues? a) Nestle
(1)
b) Olper’s
(2)
c) Haleeb
(3)
d) Good Milk
(4)
e) Others: Please Specify______________ (5)
5) Have you ever used Nestle MilkPak? a) Yes (1) b) No (2) 5) Rate the following packaged milk brands on the following characteristics using the scale below Strongly Disagree ---------------Strongly Agree 1-------------------------------5 Note: Numbers can be repeated and give answers in whole numbers. Nestle Milkpak Is a well known brand Has high Nutritional Value (vitamins etc.) Is good for health Has high Quality Tastes good Is more pure and natural (Uses less artificial ingredients) Has attractive packaging Is economically priced Is easily available Has effective ments
Olpers
Haleeb
Good milk
6) Kindly rank the following factors according to their importance while selecting “Nestle’Milk Pak”. a) Brand name
(1)
b) Nutrition
(2)
c) Health
(3)
d) Taste
(4)
e) Price
(5)
f) Availability
(6)
g) ments
(7)
7) To what extent does Nestle Milkpak have special features compared to other brands (e.g. Iron, brand image, nutrition, health and taste)? a) To a great extent
(1)
b) To some extent
(2)
c) Neutral
(3)
d) Not much
(4)
e) Not at all
(5)
8) To what extent do you feel you grew up with Nestle MilkPak? a) To a great extent
(1)
b) To some extent
(2)
c) Neutral
(3)
d) Not much
(4)
e) Not at all
(5)
9) What is your perception about Nestle MilkPak’s ments (as in what do they exhibit)? a) Healthy lifestyle (Nutrition, Health)
(1)
b) Culture (family orientation)
(2)
c) Reliability (trustworthiness)
(3)
d) All of the above
(4)
10) Which of the following feelings does Nestle MilkPak generate? a) Care
(1)
b) Warmth
(2)
c) Social Status
(3)
d) Satisfaction
(4)
e) None of the above
(5)
11) What is your overall opinion of Nestle MilkPak? a) Excellent
(1)
b) Good
(2)
c) Neutral
(3)
d) Bad
(4)
e) Worst
(5)
12) How likely would you be recommending Nestle MilkPak to others? a) Most likely
(1)
b) More likely
(2)
c) Neutral
(3)
d) Less likely
(4)
e) Not at all
(5)
13) Which brand element of Nestle MilkPak attracts you the most? a) Color
(1)
b) Logo
(2)
c) Symbol
(3)
d) Slogan
(4)
e) Jingle
(5)
f) Name
(6)
14) Rate the logo and tagline of each brand according to your liking? Don’t Like it ------------Like it 1-----------------------5 BRAND LOGOS/TAGLINES
“Subah Bakhair Zindagi”
“Banayey
Mazboot Gharana”
1
2
3
4
5
“Sub say Garha Doodh”
Help People Live healthier Lives 15) If Nestle MilkPak was a person what gender would it be? a) Male b) Female
(1) (2)
16) If Nestle Milkpak was a person what age bracket would he/she fall in? a) 4-12 years (1) b) 13-21 years (2) c) 22-30 years (3) d) 31-39 years (4) e) 39 or above (5) Q.17) If Nestle’ MilkPak were a person, what would its personality be like?
Q18) Which of the following statements do you feel about Nestle Milkpak? a) I consider myself loyal to Nestle’ Milkpak (1) b) I hang around with people who drink Nestle’ Milkpak (2) c) If I don’t find Nestle Milkpak I would not care much about it (3) d) Nestle Milkpak is extremely special to me (4) e) I would not recommend it to other people (5)
Q19) Do you have any suggestions or comments for Nestle Milkpak? ________________________________________
DEMOGRAPHICS
Your Age? _______________
What is your household Income? (Monthly income) a).40,000-70,000
(1)
b).71, 000-101,000
(2)
c).101,000 or more
(3)
SAMPLING METHODOLOGY
Sample Size Our sample size was a total of 50 respondents (n=50) from the A and B income groups which include the Middle-middle, Upper-middle and elite class of the society since they the main consumers of packaged milk. Out of our sample size of 50 respondents
Sampling Technique Our sampling technique comprised of the following two steps.
Quota Sampling The sampling was done on the basis of quota and the quota was assigned as 10 people from 5 different areas namely Defence Housing Authority, Model Town, Cantt, Gulberg and Bahria Town.
Judgment Sampling The sampling within the 5 areas was based on pure judgment. The person who seemed to belong to the upper, upper middle and middle classes of the society was selected.
QUESTIONNAIRE ANALYSIS
The following is the analysis of our questionnaire and it entails a question by question analysis which provides an insight of the brand’s perception in the minds of the consumers and how successful the brand has been in translating its values to the consumers. With the help of this questionnaire we have been able to check the match between the Brand Inventory and the Brand Exploratory as in what the Brand has tried to do in order to market Nestle MilkPak.
Question. When you recall packaged milk which brand comes at the top of your mind?
When you recall pacakged packaged Milk which brand comes at the top of your mind? nestle
olper's
Haleeb
GoodMilk
1% 5%
22%
72%
Analysis This question was designed to check the top of the mind awarness of consumers about Pakcakged milk brands. From the results we can infer that with 72% of votes ,Milkpak has a clear edge. Thus the brand recall of Nestle Milkpak is fairly good.
Question. Have you ever used Nestle Milkpak?
Have you ever used Nestle Milpak? YES
NO 4%
96%
Analysis 96% of the people we surveyed have used packaged milk at some point of time. It was a filter question , aimed at finding out whether we were surveying the right individuals.
Question. Which packaged milk brand is more used in your circle of friends/family and colleagues?
Which packaged milk is is more used in your circle of friends and family? NESTLE
OLPER,S
HALEEB
GOOD Milk
OTHERS
2% 3%
32%
6%
57%
Analysis This question was aimed at finding the opinions of a wider target audience (More than just our surveyed sample). Results showed that 57% of the people in social circle of our sample used Nestle Milkpak.
Question. To what extent does Nestle Milkpak have special features compared to other brands (e.g. Iron, brand image, nutrition, health and taste)?
Analysis This question was aimed at finding the degree of differentiation that Nestle has as compared to other brands. The results suggest that majority of the people (89%) thought that Nestle was “to some extent “ different from other packaged milk brands.A good sign could be that no one answered “not much” or “not at all”, this signifies that atleast there was some differentiation that consumers felt.
Question. To what extent do you feel you grew up with Nestle MilkPak?
What is your perception about Nestle Milkpak advertiement? Healthy lifestyle
culture
reliability
all the above
36%
58%
2%
4%
Analysis The purpose of this question was analyse that whether the values and meaning that nestle milkpak was trying to convey in it’s Ad campaigns was actually depicted by the consumers or not. The main theme of their ad was based on healthy lifestyle, and 58% of the people infeered healthy lifestyle from the advertising campaigns of Nestle milkpak.
Question . Which of the feelings does Nestle Milkpak generate?
Which of following feelings does Nestle milkpak generate? care
warmth
social status
satisfaction 2% 5%
none of above
3% 4%
86%
Analysis The purpose of this question was analyse that whether the feelings and emotions that nestle milkpak was trying to convey in it’s Ad campaigns was actually depicted by the consumers or not.86% said its showing a satisfied life,5% said care while lowest number was in warmth.
Question. Which of following brand element appeals you the most?
Which brand element of Nestle Milkpak attracts you the most? clour
logo
symbol
slogan 11%
jingle
name
3% 2%
84%
Analysis This question was designed to find the most inflencing brand element in consumers and 84% said the brand name itself while 11% said colour and 2% said logo.none of responded find the jingle or symbol convincing.
Question. What is your overall opinion of Nestle MilkPak?
What is your overall opinion of Nestle milkpak exellent
good
15%
neutral
bad
worst
11%
74%
Analysis 74% of the people felt that Nestle Milkpak was good, 15 % had a neutral opinion, and 11% thought it was excellent. No one thought it was bad or worst.
Question. How likely you would be recommending others to use Nestle Milpak?
How likely you would be recommending Nestle Milkpak to others? most likely
more likely
neutral
less likely
not at all
3% 13%
84%
Analysis This question was designed to determine brand loyalty and 84% gave a positive response which is high number.
Question. If Nestle Milkpak was a person what gender it would be?
If Nestle Milkpak was a person what gender would it be? male
female
45% 55%
Analysis This was about brand personality and 55% respondants associated brand with femininity and rest described as male oriented.
Question. If Nestle Milpak was a person what age bracket would he/she fall in?
If Nestle Milkpak was a person in what age bracket would he/she fall? 4-12 years
13-21 years
22-30 years 4%
40%
31-39 years
39 or above
5% 2%
49%
Analysis As 49% said it is 13-21 years old,40% said 22-30.Most of people consider it a energetic and young brand.
Perceptual Map Analysis and Interpretation of Data We conducted data reduction and analytical techniques of factor analysis to better understand the how Nestle its placed relative to its competitors in the mind of the consumer.
Factor Analysis We conducted the factor analysis based on the Q.5 of our questionnaire. Respondents were asked to give a perceptional rating to different competing brands in the processed milk category. We analyzed a total of 50 consumer responses
Based on the factor analysis done with the help of statistical techniques we got the following result. FACTOR
ATTRIBUTES
Trustable Brand
Processed Taste
Effective Marketing Mix
Well Known Brand
Taste
Quality
Nutritional Value
Attractive Packaged
High Price
Healthy
ment
Purity
Availability
Table 1 - Three Factor Analysis
From these factors we can easily see that our target population thinks in three different dimensions when making a processed milk purchase/consumption behavior. One interesting finding is that the attribute “Tastes Good” is negatively correlated with Attractive Packaging which shows that consumers consider a product which focuses more on its attractive packaging is more processed in of taste (or deviates from natural taste of milk). This result gives an important insight from the marketing point of view i.e. a marketer of packaged milk needs to
address three major concerns of the target population namely Trustable Brand, Processed Taste and Effective Marketing Mix.
Attribute Rating & Perceptual Maps We also used the factor data to create perceptual maps showing the relative positions of thedifferent brands (Nestle, Olpers, Haleeb and Good Milk). We used the Factor Scores (calculated using the statistical technique of Factor Analysis) to calculate the mean scores for each brand in each of the three factors. The final perceptual maps are given hereunder.
It can be easily seen from the Trustable Brand – Effective Marketing perceptual map, that Nestle is perceived to be positive in of being a more Trustable Brand than Good Milk and Haleeb even though Olpers is higher on that dimension but consumers also believe that that in of pricing in marketing mix the price seems higher compared to the perceived value consumers
obtain when they consume the product. Olpers on the other hand seems to make a pretty positive impression in of its ment and Distribution in its Marketing Mix
In the Trustable Brand - Processed Taste perceptual map, Nestle although perceived to have an attractive packaging but also consumer perceive that due to more treatment of milk during processing the milk might have lost its natural taste and seems more artificial which might also be effecting the trust of the consumers versus Olpers. Good Milk is the negatively placed both in of trust as well as its taste and packaging where as Haleeb looks to be stuck in the center showing that consumer are confused when it comes to Haleeb.
Another important insight obtained from these perceptual maps is that there is an opportunity for Nestle for a new product launch in the segment where we give our consumer a higher value in of a product which has a more natural packaging (could be transparent/translucent bottles)
and hence more perceived natural taste and leverage the high trust placed by consumers in our brand while at the same time keeping the same ment and efficient distribution