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 Nestl 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 Anam Mahmood Muhammad Ali Hanif Nouman Ali Hassan Tariq (05-0366) (07-0413) (06-0350) (08-0318) (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 Nestl 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 History of Nestl Brand Hierarchy History of Nestl MilkPak Boston Consulting Group Matrix Competition Competitive Positioning Matrix Competitive Profile Matrix 08 09 02 03 05 06 07

Nestl MilkPaks Micro Environment Porters Five Forces Model 10 12

Market Situation Analysis 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 34 36

Recommendations Bibliography Appendix

ILLUSTRATIONS

Figure-1 Situation of the Market of Milk users Figure-2 Market Share of Packaged Milk Brands Figure-3 SKUs of Nestl MilkPak Figure-4 Product Life Cycle of Nestl MilkPak 20 19 17 12

EXECUTIVE SUMMARY

This report is the Brand Audit of the Famous Brand of Nestl that is Nestl MilkPak. This report highlights the major branding concepts of Nestl 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 its 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 NESTL

1866-19751
In the 1860s Henri Nestl, 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 Nestl 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 Nestl'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 Nestl. 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'Oral in 1974.

1975-2002
Nestl made its second venture outside the food industry by acquiring Alcon Laboratories Inc..Nestl divested a number of businesses1980 / 1984. In 1984, Nestl'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, Nestl merged its U.S. ice cream business into Dreyer's, and in August an acquisition was announced of Chef America, Inc.

http//www.nestle.com/AllAbout/History/HistoryList.htm

2003 Till Date

The year 2003 started well with the acquisition of Mvenpick Ice Cream, enhancing Nestl'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 Nestl portfolio and 2007 saw Novartis Medical Nutrition, Gerber and Henniez join the Company.

Mission
Nestl 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, Nestl contributes to the well being of consumers and contributes to their lives.

Vision
Vision of Nestl MilkPak Pakistan is to expand business according to the increasing demand of market. As per Nestls 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 Nestl 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 NESTL MILKPAK

Nestl entered Pakistan in 1984, when the parent company, the Switzerland-based Nestl SA, first acquired a share in MilkPak Ltd. MilkPak is a standardized UHT milk that benefits from Nestles 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 its milking all the cash and profits out of its existing customers but the rate at which its sales are growing is declining.

COMPETITION
Competitive Positioning Matrix

Nestle is definitely leading the market. Its investments in R & D are huge and its 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 Olpers are used)

MilkPak Critical Success factors Advertising Product quality Competitiveness Financial position Customer Loyalty Market share Price 0.2 0.1 4 2 0.8 0.2 0.2 3 0.6 0.2 0.1 0.1 0.1 4 3 3 4 0.8 0.3 0.3 0.4 weight Rating Weighted score

Haleeb Rating Weighted score

Olpers Rating Weighted score

2 2 1 2

0.4 0.2 0.1 0.2

4 4 3 3

0.8 0.4 0.3 0.3

0.2

0.8

1 2

0.2 0.2

2 2

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, Olpers second highest and Haleeb the lowest. It is also important to note that difference between weighted averages of Olpers and Milkpak is quite low (0.2). This is an indicator for Nestle milkpak that its in for fierce completion with Olpers. Olpers is one of the biggest emerging threats for Nestl.

NESTL MILKPAKS MICRO ENVIRONMENT

Porters Five Forces Model
Competition
Nestl faces tough competition when it comes to the Packaged Milk market. Its major

competitors include Olpers 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 Olpers ,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, Olpers ,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 Nestl MilkPak established as the Market Leader followed by Olpers , Good Milk and Haleeb. There are other brands like Prema and Nurpur that also come under the Packaged Milk category

BRAND INVENTORY
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 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 campaign that Nestl 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 Nestl 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.Nestl 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 Nestl 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 Nestl MilkPak. Nutritional assessment is carried out by R&D nutritionists and generally compares Nestl 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 Nestl MilkPak with the consumer at the center.

BRAND POSITIONING

Brand Positioning (as defined by Kotler) is an act of designing the companys offer and image so that it occupies a distinct and valued position in the target customers 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 Nestl MilkPak is based on gender and occupation. As its 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 Nestl 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
Nestl faces tough competition when it comes to the Packaged Milk market. Its major

competitors include Olpers 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 Nestl)

Points of Parity
All the packaged milk brands offer the basic commodity; milk. At the product level Olpers, Nestl, 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 Nestl 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 Nestl MilkPak which are non existent in any of the other milk Brands. These points of difference which make Nestl 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 Nestl 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

Nestl 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 rivals 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 Nestl 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 1000ml 500ml 250ml PRICE3 Rs. 62 Rs.34 Rs.17

Placement
The product is available readily at all shops of any magnitude and location. Everyone has access to Nestl MilkPak and there is never an issue of availability to any consumer. Nestl 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 Nestl 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

Nestl 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 Nestl MilkPak.

Hypermarket
Hypermarkets like Metro Cash and Carry and Makro are also location where Nestl MilkPak is available for bulk buying.

Channel Strategy
The various channels involved in their Supply Chain are, Wholesalers, Retailers and Customers and Nestls Suppliers that include Tetra Pak and Milk Supplying agents. The Distribution channel appears as the following and involves the following middle parties;

Promotion
Nestl MilkPak marketing communication is all about focusing on health conscious people. For this purpose, Nestl 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 Nestls 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 Ads 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 Nestl Milk is also advertised in Sunday and kids magazines. 4. Internet Nestl 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
Nestl 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 Nestl is written quite bigger than the sub brand Milk Pak. The reason for this is that at that time MilkPak itself hadnt established its foothold in market as a distince brand. However as MilkPaks awareness increased the tag of Nestl 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

Nestl 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 Nestl. 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 Nestl.
External Market Research

In some cases Nestl 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
Lets 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 MDs 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 Nestl immensely in gaining the market power that it today has. The Ad agency currently employed by Nestl is Lowe & Rauf. Along with branding department within Nestl 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.

CUSTOMER BASED BRAND EQUITY PYRAMID

Brand Salience5
Nestl 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, Nestl 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
5

The data to substantiate these facts is given in the appendix

seemed disatified by the packaging and advertisments of Nestl MilkPak as opposed to other brands. They believed that Olpers had a better tagline and Logo.

Imagery
Nestl 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. Nestl MilkPak is a brand that brings comfort and satifaction in terms of quality and purity as opposed to other Packaged Milk brands.

Judgements
Nestl 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. Nestl MilkPak has high credibility Nestl 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 Nestl 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 Nestl MilkPak.

Resonance
The brand loyalty of Nestl MilkPak is very strong even though its 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 Nestl 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 Olpers 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 Olpers rapidly change its ad campaigns. Olpers 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 Olpers 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 Olpers. Since the packaged Milk Brands share the same shelf spaces in Retail stores it is extremely important to have a matched packaging. Olpers 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 Nestls history, Retrieved April 192010 from http://www.nestle.com Nestls Logos and Symbols, Retrieved April 222010 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 142010 http://www.nestle.co.jp/japan/e/global/well-being.asp

APPENDIX

Location: __________ QUESTIONNAIRE

Date: ______________

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 b) No (1) (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 b) Olpers c) Haleeb d) Good Milk (1) (2) (3) (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 advertisements Good milk

Olpers

Haleeb

6) Kindly rank the following factors according to their importance while selecting NestleMilk Pak. a) Brand name b) Nutrition c) Health d) Taste e) Price f) Availability g) Advertisements (1) (2) (3) (4) (5) (6) (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 b) To some extent c) Neutral d) Not much e) Not at all (1) (2) (3) (4) (5)

8) To what extent do you feel you grew up with Nestle MilkPak? a) To a great extent b) To some extent c) Neutral d) Not much e) Not at all (1) (2) (3) (4) (5)

9) What is your perception about Nestle MilkPaks advertisements (as in what do they exhibit)? a) Healthy lifestyle (Nutrition, Health) b) Culture (family orientation) c) Reliability (trustworthiness) d) All of the above (1) (2) (3) (4)

10) Which of the following feelings does Nestle MilkPak generate? a) Care b) Warmth c) Social Status d) Satisfaction e) None of the above (1) (2) (3) (4) (5)

11) What is your overall opinion of Nestle MilkPak? a) Excellent b) Good c) Neutral d) Bad e) Worst (1) (2) (3) (4) (5)

12) How likely would you be recommending Nestle MilkPak to others? a) Most likely b) More likely c) Neutral d) Less likely e) Not at all (1) (2) (3) (4) (5)

13) Which brand element of Nestle MilkPak attracts you the most? a) Color b) Logo c) Symbol d) Slogan e) Jingle f) Name (1) (2) (3) (4) (5) (6)

14) Rate the logo and tagline of each brand according to your liking? Dont 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 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 dont 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 b).71, 000-101,000 c).101,000 or more (1) (2) (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 brands 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 1% 5% olper's Haleeb GoodMilk

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 2% 3% 6% GOOD Milk OTHERS

32%

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 its 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 2% 5% satisfaction 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 its 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 neutral bad worst

15%

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 3% 13% less likely not at all

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% 5% 2% 31-39 years 39 or above

40%

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 Trustable Brand Well Known Brand Nutritional Value ATTRIBUTES Healthy Purity Processed Taste Taste Attractive Packaged Effective Marketing Mix Quality High Price Advertisement 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