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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 support 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 Accounts Manager and Mr. Sajid Rizvi, Sales Admin
Executive at Nestlé for their immense amount of patience, time and support 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 supported 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 support 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 Accounts Manager and Mr. Sajid Rizvi, Sales Admin Executive at Nestlé for their
immense amount of patience, time and support 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 supported 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 08 Competitive Profile Matrix 09
Nestlé MilkPak’s Micro Environment
Porter’s Five Forces Model 10
Market Situation Analysis 12
Brand Inventory
Brand Identity 14 Brand Positioning 16 Marketing Mix 19 Brand Elements 25 Branding Decision Making Process 27
Brand Exploratory
Customer Based Brand Equity Pyramid 31
Recommendations 34
Bibliography 36
Appendix
ILLUSTRATIONS
Figure-1
Situation of the Market of “Milk” users 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,
Germany 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 join 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
support 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 Haleeb Olper’s
Critical
Success
factors
weight Rating Weighted
score
Rating Weighted
score
Rating Weighted
score
Advertising
Product quality
Competitiveness
Financial
position
Customer
Loyalty
Market share
Price
0.2
0.1
0.1
0.1
0.2
0.2
0.1
4
3
3
4
3
4
2
0.8
0.3
0.3
0.4
0.6
0.8
0.2
2
2
1
2
1
1
2
0.4
0.2
0.1
0.2
0.2
0.2
0.2
4
4
3
3
4
2
2
0.8
0.4
0.3
0.3
0.8
0.4
0.2
Total 1.00 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 joining 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” users
The market of “Milk” users consists of 2% of “Packaged” milk Users and 98% of the “Non Packaged
Milk” users 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 users 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
INVENTORY2
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 advertisement 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
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
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 designing 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 upper-
upper/ 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 Accounts 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.
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
3 As per 23 April 2010
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 advertiser pays an advertising agency to
place the ad.
1. Advertisements
40 % of Nestlés’ advertisements are focused on conversion of milk users 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 special
times of the year e.g. Eid.
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 advertised 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 In house
promotion is to increase awareness about MilkPak in such areas.
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 panel 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
EXPLORATORY4
CUSTOMER BASED BRAND EQUITY PYRAMID
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.
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 terms 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
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.
5 The data to substantiate these facts is given in the appendix
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 advertisements 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 terms 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
advertisement 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 Advertisements
Milk Pak should aim at increasing the frequency of their advertisements aired on
television, radio and newspapers. The more the advertisements the more the customers
are able to recall the brand as compared to its competitors.
Frequent Change of Advertisement 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 Accounts Manager. Nestle
Mr. Sajid Rizvi, Sales Admin 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 Olpers HaleebGood milk
Is a well known brandHas 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 packagingIs economically priced
Is easily available Has effective advertisements
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) Advertisements (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 advertisements (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 1 2 3 4 5
“Subah Bakhair Zindagi”
“Banayey Mazboot Gharana”
“Sub say Garha Doodh”
Help People Live healthier Lives
15) If Nestle MilkPak was a person what gender would it be?
a) Male (1)b) Female (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?
72%
22%
1%5%
When you recall pacakged packaged Milk which brand comes at the top of your mind?
nestle olper's Haleeb GoodMilk
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?
96%
4%
Have you ever used Nestle Milpak?YES NO
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?
57%32%
3%6%
2%
Which packaged milk is is more used in your circle of friends and family?NESTLE OLPER,S HALEEB GOOD Milk OTHERS
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?
58%
4%2%
36%
What is your perception about Nestle Milkpak advertiement?
Healthy lifestyle culture reliability all the above
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?
5%
3%4%
86%
2%
Which of following feelings does Nestle milkpak generate?
care warmth social status satisfaction none of above
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?
11% 3%2%
84%
Which brand element of Nestle Milkpak attracts you the most?
clour logo symbol slogan jingle name
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?
11%
74%
15%
What is your overall opinion of Nestle milkpak
exellent good neutral bad worst
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?
3%
84%
13%
How likely you would be recommending Nestle Milkpak to others?
most likely more likely neutral less likely not at all
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?
45%
55%
If Nestle Milkpak was a person what gender would it be?
male female
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?
2%
49%40%
5% 5%
If Nestle Milkpak was a person in what age bracket would he/she fall?
4-12 years 13-21 years 22-30 years 31-39 years 39 or above
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 Trustable Brand Processed Taste Effective Marketing Mix
ATTRIBUTES
Well Known Brand Taste Quality
Nutritional Value Attractive Packaged High Price
Healthy Advertisement
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 terms 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 terms 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 terms 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 terms of its Advertisement 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
terms 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
terms 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 advertisement and efficient distribution