Nestle Nesfruita Marketing Strategy

Introduction:

Nestle:

Nestle is a global organization which was formed 150 years ago in Denmark. According to nestle, they are the world’s leading nutrition, health and wellness company. “Good food. Good life” is the promise they commit to enhance lives, throughout life with good food and beverages.

Nestle Pakistan was formed in 1988. Nestle Pakistan is proud of its commitment to excellence in product safety and quality and to providing value. The company’s strategy is guided by Nestlé’s Corporate Business Principles which are in line with internationally accepted best practices and ethical performance culture. Nestlé’s existing products grow through innovation and renovation while maintaining a balance in geographic activities and product lines. Nestle Pakistan today is the leading Food & Beverages Company in Pakistan with key focus on Nutrition, Health and Wellness and reaching the remotest of locations throughout Pakistan to serve the consumers.

Nesfruita:

NESTLE NESFRUTA is our mainstream range for young enthusiastic teenagers. Be it school, college or university, a mundane day or a tiring evening, NESTLE NESFRUTA is by your side. It embodies NEWISM which encourages young teenagers to bring “newness” in everything they do by adding their own creative unique twist!

Available in Mango and Apple, Every sip brings you the refreshing fruity flavor that excites your senses and set the stage for good times with your friends and family.

Report:

We have visited forty Kiryana stores in all. The information we have found out is quite insightful. The shops we covered unfolded some of the purchase schedule, the product positioning in the shops and the consumer’s consumption pattern.

Environment of the Stores:

Most of the stores were managed by two or three people at most and the cover areas were relatively small. The shopkeepers themselves are doing most of the daily business with assistance of few workers. Everything is having its particular place at every store. There are compartments for every product category. The stores POP mostly contained items like chips, biscuit, toffies, bread and other daily routine items with very less abnormality in the pattern. Most of the store’s SKU’s were situated in the later part of the shop as most of them don’t have so much capital that they can arrange for proper warehouses or go downs. Our product having a requirement of being refrigerated was no stocked up much and was always ordered according to the demand and consumption.

About The Product:

Nestle Nesfruta juice is a relatively new product introduced by the brand after the success of its initial juice product Nestle Fruita Vital. Fruita Vital being a premium juice is expensive in comparison with the competitors but gained popularity because of the quality of the product. The brand felt the need to introduce a product that would be less expensive and continue the success of the brand in the juice section. The survey has helped us formulate some facts regarding the products on ground situation. A major revelation is that Nesfruta has not met the expectations till now as to continue the legacy of Fruita Vital. The major reason is that it faces a very tough competition from its competitors; specially Slice juice, a product of PepsiCo. Slice being an old player in the market has a huge share of the juice market. Whereas Nesfruta, launched at the same price as Slice has not been successfully able to capture a major chunk of the consumer market. The quality of the product has also been a reason of its progress in the market. It is known to be a thin, less concentrated liquid in comparison with Slice which is thicker and more concentrated. The consumers prefer Slice over Nesfruta for that reason. It is also found out that Nesfruta’s sales depend on seasons. Sale of the product in summers is much more in comparison to winters. Here in Pakistan, the month of Ramadan brings a huge market for juices and the festivals as well bring an opportunity for the brands to capitalize. Nesfruta performs relatively better in those seasons than normal. It was also an interesting thing for us to find out that the brand does not provide any promotional offers to the local shops so they can help the sales to improve. Only the TVC and print advertisements are trusted upon for the sale of product. The product was not available in huge numbers at small local shops showing that the brand is not that interested. Some shops clearly indicated that Nestle representatives themselves come and place the product in the refrigerators. The arrangement we observed was that Nesfruita was placed in a single line at one shop and in three lines at the other in comparison to Slice’s five to six lines adjacent to Nestlé’s product. The product is purchased either on alternative days or weekly to cater the demand of the consumers. At some shops, the Nesfruita juices are not even place in refrigerators and are sold at room temperature upon demand.

Insight from the Interviews:

We interviewed a total of forty shopkeepers of different stores asking them all the relevant questions about our product. They told us that the most running brand in the category is slice and fruito in comparison to our selected Nesfruita. They said that in the case of fruito people has a long sense of connection with this product as it is in the market for a very long time. Generations have