Marketing Plan of Nestle Pure Life

MARKETING PLAN OF NESTLE PURE LIFE
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ACKNOWLEDGEMENTS
First of all we owe to the grace of Allah Almighty who gave us strength, knowledge
and perseverance to undertake and successfully complete the project.
Secondly we would like to thank Ms. Shehla Arifeen for her valuable suggestions and
tips. It would have been difficult for us to complete the project without her worthy
guidance as she, despite of her busy schedule was always eager to provide expert
opinion and suggestions on the subject. We are thankful to her for giving us ample
time and helping us to overcome various problems faced throughout the project.
Finally we would like to thank to all others who assisted and provided help directly or
indirectly and led us to the completion of the project.
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EXECUTIVE SUMMARY
Our project is to propose a marketing plan for Nestle Pure Life 0.5 ml water bottle.
Bottled water industry is at the Shakeout stage of product life cycle, increased
awareness about health and other issues, is adding to the promotion of this industry.
Bottled water is often the consumers’ choice for a healthy beverage that gives them a
source of minerals, helps to prevent obesity, and in so doing, reduces the risk of
associated healthcare problems.
For our project, we studied the macro and the micro environment to analyze the
strengths and weaknesses, opportunities and threats for Nestlé Pure Life. The basic
focus of our project is 0.5 ml water bottle of Nestle Pure Life. Market segmentation
has been done by focusing Nestle Pure life, positioning and perceptual map have also
been discussed.
Our analysis shows that competition in the bottled water industry is tough because
now there are other players like Pepsi (Aqua Fina), Coca Cola (Kinley), Sufi and
Springley. According to Nestle Pure Life manager the industry is growing at the rate
of 100%.
We have proposed certain strategies that will help Nestle Pure Life to improve the
profitability and growth of 0.5 ml bottle by focusing on distribution channel and
increasing availability of the brand as 0.5 ml bottle purchase is entirely on impulse
basis.
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NESTLE PURE LIFE
Nestlé Pure Life, is a safe, healthy, easily transportable, pleasant tasting water for the
whole family at a reasonable price.
Nestlé Pure Life is established today in 21 countries across Asia, Middle-East,

Africa, North America and Latin America. It is Nestlé Waters' leading brand in
volume. The year 2000 experienced accelerated development in Home & Office
Delivery.
Nestlé began its entry into the water business in 1969. In 1992, Nestlé was the first
company to dare to launch a mineral water. In 1998, for the first time in its history,
Nestlé associated its name with bottled water: Nestlé Pure Life. The brand was
launched in Pakistan and soon appeared in Brazil, followed by Argentina, Thailand,
the Philippines, China, and Mexico in 2000. In 2001, India, Jordan, and Lebanon
followed, and in 2002, Egypt, Uzbekistan and the United States.
As per now, the Group changed its name to Nestlé Waters, a token of Nestlé's
decisive commitment to the bottled water market, which now represents 9% of its
sales. Today, Nestlé Waters is established in 130 countries and markets about 70
different brands.
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INDUSTRY ANALYSIS
INDUSTRY OVERVIEW
Pakistan’s bottled water industry is a rapidly growing segment of the beverages

sector. The country’s market is comparatively very small on a global scale and was
estimated at 33 million liters a year. However, with swift increase in the number of
bottled water producers during the last three years, the country’s market is estimated
to have grown to 70 million liters with per capita consumption reaching half a liter.
The bottled water market is presently growing at a robust rate of 40% per annum.
According to a recent study compiled by Zenith International, specialist consultants
for Asia Bottled Water Association (ABWA), Pakistan registered the fastest growth of
140% in 2000 amongst the countries in Asia and Middle East region.
There are around 23 players operating in the bottled water sector, that include all
small competitors, however the major three players include Nestle Pure Life, Kinley
and Aqua Fina. According to industry sources, the number of bottlers scales up well
above 70 during summer season due to increased demand for drinking water in
summer. However, the much publicized laboratory report published by the Pakistan
Council of Research in Water Resources (PCRWR) after conducting a survey of 26
brands in the Rawalpindi and Islamabad region declaring that ‘all the 23 brands
available in the market are contaminated while 10 of them are unsafe for drinking’,
forced the Pakistan Standards and Quality Control Authority (PSQCA) to make it
obligatory for the companies to obtain license from the authority before commencing
operation. A total of 18 companies have so far been registered by the PSQCA.
ASIA – THE FASTEST GROWING BOTTLED WATER MARKET
The bottled water industry is one of the fastest growing industries in Asia. Zenith
reports stunning growth of 45% across 50 countries in Asia, Middle East and North
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Africa. Total sales reached 25,270 million liters, more than double the level of 1995.
The region is now 23% of global consumption with market value at US$ 4,700 mn.
According to Zenith Research and Development Director, ‘the Asian Market is still
very young and it is anticipated that volumes will double again to over 50 million
liters.
Table 1.1: Percentage of housing units by source of drinking water and

rural/urban, Pakistan 1998
Source of Drinking Water All Areas Rural Urban
Inside Housing Unit 75.04 68.45 89.44

Pipe (Nul) 28.08 13.37 60.22
Hand Pump 42.07 49.58 25.68
Well 4.89 5.50 3.54
Outside Housing Unit 24.96 31.55 10.56

Pipe (Nul) 4.18 3.89 4.81
Hand Pump 5.06 6.78 1.31
Well 5.08 6.98 0.91
Pond 2.85 4.03 0.28
Others 7.79 9.87 3.24
Total 100.0 100.0 100.0
Source: Population Census Organization, Statistics Division, Govt of Pakistan. '1998

Census Report of Pakistan', Table 3.6, Page-154
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BOTTLED WATER MARKET IN PAKISTAN
Bottled water in Pakistan is not considered a ‘beverage’. Beverage processing

includes carbonated soft drinks – where Pakistan has the lowest per capita
consumption in the world, fruit juices, syrups and juice flavored drinks. Drinking
water – and also bottled water – is not considered an important commodity either.
Water supply and prices for drinking water and bottled water are not considered under
the items in the Sensitive Price Indicator, Consumer Price Index or Wholesale Price
Index. From this perspective, it is obvious that Pakistan has low consumption of
bottled water.
The bottled water market in Pakistan has witnessed annual growth rates of 40 percent,
and after the introduction of Nestlé’s ‘Pure Life’, it had the fastest worldwide growth
in bottled water in at 140%. Recent figures estimate a yearly consumption of about 2
litres per person bottled water. Compared with Thailand’s 43 litres and Philippine’s
15 litres per capita consumption, this seems relatively low. But taking Pakistan’s
population into account, one has to estimate an annual consumption of 318 million
litres. While again, sufficient figures are not available to prove this 964 percent
consumption increase in five years, one is able to conclude that Pakistan is a highly
dynamic and lucrative market.
Market expectations are as high in the retail market of bottled water as in the
household and operations sector for bulk water. Besides these market expectations,
the production of bottled water is also considered quite profitable. It is estimated that
a bottle of 1.5 litres has production costs of PKR 12.51 while it is sold for PKR 22.
The profit is shared between producing corporations, with PKR 0.66-0.83, and
middleman, with PKR 6.66-7.08. By this standard, the producing corporation makes a
profit of 4-5 percent while the middleman makes a profit of 27-30.55 percent.
In Pakistan’s water market, there are approximately 20 permanent players. Official

figures show an estimated number of 26 corporations, while in summer time, this
number increases up to 70. But from the perspective of quality control, PCRWR is
witnessing a fluctuation in the market of 50 percent, e.g. half of the brands disappear
and are replaced by new brands yearly. In 2005, PSQCA admitted that 200 companies
are selling bottled water in Pakistan, but only 27 are registered as maintaining
standards stipulated for the product. Regardless of this data, it is unquestioned that
Nestlé controls the majority of the market (over 50 percent) with its brands ‘Pure
Life’, AVA and Fontalia, while Danone’s subsidy “Sparkletts” holds 12 percent and
another local brand “BSW” has an estimated five percent market share.
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STRUCTURE OF PAKISTAN BOTTLED WATER INDUSTRY
Pakistan’s bottled water market comprises of two main segments i.e. retail market and
bulk market. The retail market consists of 0.5 litres, 1.5 litres capacity PET bottles.
The bulk market consist s of home and office delivers in 12 and 19 litres.
There are around 23 players operating in the bottled water sector. However, according
to industry’s sources, this number reaches well above 70 when small unknown
operators crop up during summer owing largely to the lax regulation and ineffective
monitoring of the sector. Nestlé’s Pure Life brand dominates the retail market with a
share of 50 per cent.
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PORTERS FIVE FORCES MODEL
INTENSITY OF RIVALRY
Nestle Pure Life is market leader with market share of 55%. Main competitors of pure
life in market are Aquafina of Pepsi, and Kinley. Some other companies are
Sparkletts, and Sufi, whereas Askari has closed its business in mineral water industry.
Nestle has strict quality controls certified by PSQCA. The competition in market is
based on price and quality and Nestle Pure Life has this competitive edge on its
competitors. Nestle brand name is also synonymous with quality and has a strong
perception in the minds of customers. Competition is based on the fact that which best
brand consumers have in their minds. The main focus of the company is to capture the
minds of its consumers. Nestle Pure Life has gained this share because consumers
trust on this brand is very high.
According to a survey 80% of mind recalls in customers said Nestle Pure Life.
• As water industry is at shake out Stage (source: Asad Ahmed, brand Manager
Nestle Pure Life)
• Competition is weakening there are three main players left in the market
including Nestle Pure life Kinley and Aquafina
THREAT OF SUBSTITUTES
Water is generally considered as a tasteless, odorless, colorless drink for quenching

thirst and fulfilling the human body’s natural needs therefore does not have any
substitutes in the true sense. But substitutes would include:
• all bottled brands
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• carbonated soft drinks

• juices
• sweetened drink
• energy drinks
• tap water
• any other beverage available in the market
Main substitute to the bottled water is tap water which is easily available on no costs.
Bottled water is covering 7% of Pakistan’s population. The rest of the population is
either having boiled water or filtered water.
NEW ENTRANTS
If some new company will enter in bottled water industry Nestle Pure Life is great
barrier for it because Pure life has very extensive distribution network. Except Nestle
the market is moderate, having no such entry or exit barriers, because still a larger
segment is unserved.
SWOT ANALYSIS
OPPORTUNITIES
1. Profitability:
Increasing awareness is adding to profitability and sales for the strong market palyers.
2. Growth:
Most of the population of Pakistan is using tap water and there is increasing
awareness towards safe and bottled water. There is a huge market which can be
captured by new entrants. Bottled water has only covered 7% of the population.
THREATS
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1. Substitutes:
Bottled water is a part of refreshment beverage market and thus is easily substitutable
by other beverages. Water has many other substitutes such as: juices, tap water,
carbonated drinks, squashes etc. The biggest substitute is tap water.
STRENGTHS
• Nestle has strict quality controls certified by PSQCA

• Strong Quality perception in the minds
 Highly accepted Brand name
• Nestle Pure Life has gained this share because consumers trust on this brand is
very high.
WEAKNESSES
• Established distribution channels of Competitors
MAIN PLAYERS IN INDUSTRY & COMPETITOR ANALYSIS
They have two broad categories of competitors, one is of those which are producing
the same product and satisfying the same need those are all other bottled water
companies. While the others are those who are producing the substitute products to
satisfy same need.
COMPETITORS WITH SAME PRODUCT
There are 23 companies in the bottled water industry of Pakistan. All these are the
competitors of Nestle Pure life. Nestle is the commanding brand among all of them as
it is having the major share of the market.
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ANALYSIS OF COMPETITION FOR NESTLE PURE LIFE
They have two broad categories of competitors, one is of those which are producing
the same product and satisfying the same need those are all other bottled water
companies. While the others are those who are producing the substitute products to
satisfy same need.
Competitors with same Product
There are 26 companies in the bottled water industry of Pakistan. All these are the
competitors of Nestle Pure life. Nestle is the commanding brand among all of them as
it is having the major share of the market.
THE MINOR/ MAJOR COMPETITORS OF NESTLE PURE LIFE ARE:
o Tap water
o Filtered water
o Jerry Cans
o Boiled water
o Vey
o Springley (Water Launched by Qarshi).
o Aqua Fina (Water Launched by Pepsi).
o Sufi (Water launched by Sufi).
o Kinley (Water Launched by Coca Cola).
POTENTIAL COMPETITORS:
o Haleeb is launching its water.
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1. Aqua Fina:
Pepsi has launched aqua fina nearly a few years back. Aqua Fina has share of 32% in
market. Aqua Fina has captured a large share of market because of its strong brand
name and strong distribution channel. Aqua Fina bottles are available in 0.5litre,
1.5litre, 300ml, 5 gallons sizes.
Aqua fina has very strong distribution. They have direct distribution system. The
product is supplied directly from warehouse to retail outlets without any whole
sellers. Aqua Fina in a few years has started serving to all major cities of Pakistan.
Aqua Fina is also focusing on promotions. Recently they have sponsored Marathon
race in Pakistan. They also give quantitative discounts (2+1, 4+1etc.) Aqua fina is
using reverse osmosis process as Nestle is doing. But their packaging is different from
Nestle. Aqua Fina use polythene wrapper on bottles as well as nitrogen gas for
packing the bottle which keep its packing more tight.
2. Springley:
Qarshi Industries (Pvt.) Ltd. is one of the largest natural products

company in Pakistan. Nearly two years back Qarshi has launched
Springley. Springley is successfully competing in market and has
captured a share of more than 5%.
Springley Natural Mineral Water comes from the most protected natural source of
water deep within the mountainous regions of Northern Pakistan. Naturally rich in
minerals and full of nature's vitality, Springley Natural Water is extracted from pure
underground source from foothills of Himalayas and then filtered and packed at state-
of-the art plant in Hattar NWFP, Pakistan. Qarshi is offering Springley in 500 ml,
1500 ml, and 19 Liter PET Bottles.
Qarshi will be one of the major competitors of Nestle in future because of its brand
name which is associated with natural products and its nation wide distribution.
3. Kinley:
Coca cola has recently launched Kinley. They introduced Kinley with reverse-
osmosis along with the latest technology to ensure the purity of
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product. They go through rigorous testing procedures at each and every location
where Kinley is produced. Because they believe that right to pure, safe drinking water
is fundamental and is a universal need that cannot be left to chance.
Coca cola will be a great threat for Pure Life in future because they can sacrifice
profitability on market share. Coca cola also has very strong distribution channel and
brand name.
o Competitors with Substitute Product
Main competitors not only lie among same product category but also among those
who are producing substitute product. And in this case of Nestle this is quite evident
that substitute products are really capturing the market.
Substitute product includes all beverages other than bottled water those are Tap water,
Soft drinks (Pepsi Cola, Coca Cola), Juices (Nestle, Shezan, Country etc.) Energy
Drinks (Red Bull etc), Milk and others. They all are satisfying the same need but each
has its own value and benefits that the customer will prefer if he/she will go for that
product, For example if a Person is thirsty and his preference is Low Price, he will go
for the tap water, of his preference is the product which provides taste along with
fulfilling the basic need of thirst her will go for Soft drinks, if he prefer refreshment
he will go for juices, if he want some energy along with satisfying basic need of thirst
he will go for energy drinks, and if he want something good for health and also useful
to satisfy thirst he/she will be some cold milk.
That is how these substitute products will capture the market and are the competitors
of Nestle. In this regards, soft drinks are the top most competitors of Nestle Pure life
and secondly comes the juices.
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COMPETITOR ANALYSIS
NESTLE PURE LIFE
Product: Nestle Pure Life (pure, safe and healthy drinking water)
Available SKU’s of Pure Life:
1) 0.5 ml.
2) 1.5ml
3) 12 lit
4) 19 lit
Price: Rs. 15 for 0.5 liter Rs. 28 for 1.5 liters
Place: Retail outlets, drug stores, departmental stores including small shops
Promotion: ATL and BTL
1) Promotion: Nestle is majorly focusing on their promotion side due to the

prevailing competition in the market. As the market of water is becoming 3-
brands market i.e. Nestle, Aqua fina and Kenly. The new entrants are striving
very hard for growth and market share. Recently the company that is Nestle
has launched an international campaign named “Aqua Land” that remains very
successful. The major focus is on ATL and point of purchase i.e. retailer. The
advertising budget is set according to what growth sales target they want to
achieve or set? The company also consider the last year advertising budget
before setting up the next year’s budget. The promotion is divided into two
components i.e. consumer and trade promotion.
a) Consumer promotion: Nestle Pure Life considers consumer promotion to

stimulate quick sales. The company has very good brand equity, good
market share and is in top of the mind of their existing and potential
customers. Currently Pure Life has launched a campaign for HOD i.e. no
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security and deposit for new customers and this remains very helpful in
attracting new customers that are very conscious about deposits.
Trade Promotion:
The major focus of Pure Life is on trade promotion due to increasing competition in
the market from the other two major players that are Kenly and Aqua fina. The PFME
or marketing budget for water is three time greater than the over all standards for the
other products. Now the company is focusing on the retailers because now they are
considered to be very powerful in deciding which brand is to be placed at product
shelf. For that purpose they are heavily incentivized from the pure life and its
competitors. Pure life is giving one bottle on the sale of 12 bottles while other are
giving three bottles on the sale of 12 bottles. But still pure life is heavily demanded
from the retailers due to the high turn over which remains benefit ail for them
(source: Nisar Ahmad, Commercial Group Manager, Water division)
KINLEY
Product: Kinley
Place: Retail outlets, drug stores, departmental stores including small shops
SPRINGLEY
Product: Qarshi is offering Springley. Qarshi will be one of the major

competitors of Nestle in future because of its brand name which is
associated with natural products and its nation wide distribution.
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Place: Retail outlets, drug stores, departmental stores including other small shops
AQUAFINA
Product: Aquafina is mineral water. Aquafina uses polythene wrapper on bottles

as well as nitrogen gas for packing the bottle which keep its packing
more tight.
Place: Supplied directly from warehouse to retail outlets without any whole sellers.
SUFI
Product: Sufi bottled water
Place: Supplied directly from warehouse to retail outlets without any whole sellers.
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SEGMENTATION OF MARKET FOR NESTLE PURE LIFE
Nestle has segmented its market differently for their different Packaging of product.
Their positioning is same for all because the product is same but the market is
different on the basis of size. We are analyzing the segmentation strategy of Nestle
Pure life by dividing it into two categories on the bases of its packaging sizes.
 Segmentation for Water Bottles

 Segmentation for carton
o Segmentation for Bottled Water (, 0.5 Liters, 1.5 Liters)
This included all the bottles of available sizes in market that are 0.5 liter to 1.5 liter.
First let us differentiate the market for this type of packaging in broader view.
Market Specification: The whole available market for this type of packaging are the
out door users. Among this available market we have to find out our target market by
segmenting the market and comparing the attributes of market and the product.
Basis of Segmentation: The basis of segmentation used for these sizes of Nestle Pure
life are the combination of both demographics and psychographics factors.
These variables are Age, Education, Income and Purity conscious People.
Age: Through the variable of age we have segmented the market into number of
markets and our target segment according to the age is from 18 and above.
Education: Education is one of the key variables for our market segmentation as
behavior of the people changes with the education level and the market that
we have targeted is the market of literate people who knows the worth of
Purity in their lives. Illiterate person even if they have money they would
not find any attraction in this product but the educated people who know
what purity means to their life and health would certainly attract towards
them and they will prefer to buy Nestle pure life instead of ordinary tap
water while walking roadside when they feel thirsty for the sake of purity.
o Income Level: Income level is another key factor during the segmentation of
market. As income level increase the luxuries of life going to increase and
people comes towards the quality with the increase in income level and
become less price conscious. Our targeted segment according to this aspect is
the market of people whose family income falls in the category of middle,
upper middle or high income.
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o Purity Conscious people: The people who are psychologically very much
health and fitness conscious and they care about the cleanliness and purity of
every thing, are among our target market.
NESTLE’S TARGET MARKET

Target market of Pure Life:
All the people who believes in purity, quality, reliability and do not want to take any
risk for their family.
Target market of all competitors: Same
Market share of all competitors:
Market share of Pure Life is around 50 percent while Pepsi has around 17 percent and
Kinley has around 8 percent of over all market.
(Soure: Mansoor Ahmad, ABM, Aqua fina)
Among Out door users our target market is the market of those people who are 18 and
above in their age and they have atleast basic education which let them know
the importance of quality in life and people with high profile of income and
psychographically they need to be Purity conscious. The people having all
above qualities are our target market for our brand Nestle Pure Life.
o Segmentation for carton (12 liters, 19 liters)
This included the product size of large carton of 12 and 19 liters of water. First we
will differentiate the market for this type of packaging in broader terms.
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Market Specification: The market for this type of packaging is the indoor market.
That uses the product indoor i-e Offices and Home users. So the broader market for
this category is Home and Offices.
Basis of Segmentation: The basis of segmentation used for this size of Nestle Pure
life are also the combination of both demographics and psychographics factors. These
variables are Family size (Organization Size in term of Offices), Income Level and
Purity conscious People.
Family Size: Since our major market is Home and offices therefore for Home market
the Family size is the important demographic variable to identify the target
segment. Here we can divide family size into different categories.
o Small families (Parents + 2 children)
o Medium families (Parents + 3-5 Children)
o Large Families (Parents + More then 5 Children)
For offices our target market are the medium level and large level organization.
According to the Government of Pakistan the medium organization is that which has
the labor force of more then 100 people.
o Income Level: Income level as defined earlier is so important and it can divide
into 5 different categories as defined above and our target segment is the
segment with High and Middle high income for this size of Nestle Pure life.
Here we have not added Middle income for our potential target as they were
there for our bottled water because this packaging of water and use of this
water at home is been discourages at the homes of people with middle income,
they will buy this water when they are on road, in parks or during journey but
they will not use it most of the time for their daily use.
o Purity Conscious People: The people who are psychologically very much
health and fitness conscious and they care about the cleanliness and purity of
every thing are among our target market because only they will buy this
expensive water for their daily drinking usage.
POSITIONING
They position there product on the basis of product attribute that is pure they say that
Nestle Pure life is a “Pure family water”. This is the positioning of the product that is
pure so they are creating perception in the mind of customer that the product is pure
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and whoever wants to have purity in its drinking water should buy Nestle Pure life.
Not only the positioning jingle but the Brand Name itself is positioning the product in
the mind of customer.
The word “Family” in the jingle is actually positioning the nestle that it is not only for
the one person of the family, but it is the whole family drinking water because purity
is important for each and every person of the family.
ENVIRONMENTAL FACTORS AFFECTING THIS INDUSTRY
93% of Pakistan’s population consumes tap water. Awareness is being created that tap
water is no longer safe. . The aqua layer in underground water is contaminated. Water
for bottling is taken from the deepest layer where water quality is better and then it is
processed.
MAJOR CUSTOMERS OF THIS INDUSTRY
Residential customers
- Bulk water 19 liter
Corporate sector
- Banks, institutions and companies
Retail Market
- Disposable water 1.5 and 1 liter and 300 ml bottle.
Travelers
1.5 liter bottles, 300 ml bottles
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DISTRIBUTION NETWORK
The distribution network of mineral water industry then it is available nationwide with
a strong network of distributors, all over Pakistan. Monitored and executed by a
highly professional sales team. The common distribution network is as follows;
Company
Distributors
Retailer
Customers
In small cities water bottles are distributed through handling agents. The handling
agents are responsible to distribute it in the particular area. They distribute the bottles
to the sub-distributors. The sub-distributors then take it either to the retail shops or
directly to the customer. But this strategy is only adopted by Nestle Pure Life(one of
the players).
Nestle Pure Life
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Handling Agents
Sub Distributors
Retail Shops
Customers
MARKET ATTRACTIVENESS FACTORS
Satisfaction of need
CURRENT NEEDS OF THE TARGET MARKET: The need of the target market
is to have pure and hygienic mineral water which provides good value for money
which is handy and they can carry it to any place. The need of the children is to keep
the bottle in their school bags and can easily carry, Can be used while travelling to
college etc.
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There are good opportunities for nestle Pure life to expand. With increasing
awareness about health people are expected to move towards bottled water. Nestle
Pure Life is an established and trusted brand so the opportunity for them exists.
Macro trends- Quiet favorable
ECONOMIC: Spending patterns of people have changed. People have become more
health conscious due to increasing awareness about safe and hygienic water. They
prefer to spend more money to get pure and safe products. It is predicted that people
in Pakistan would be ready to spend more on expensive water.
LEGAL & REGULATORY FORCES: The Pakistan Standard Quality Control

Authority (PSQCA) was established under section 3 of the Act-1996. The
establishment of any mineral water plant in Pakistan is required to get a license from
the Pakistan Standards Quality Control Authority. . The PSQCA has developed
standards for bottled and mineral water and all the water plants being established in
the country are required to follow these standards. Nestle Pure Life doesn’t face any
problems meeting these standards but they are expensive. Local companies don’t
show their actual sales but Nestle does. It is very transparent and thus it faces
problems.
TECHNOLOGICAL FORCES: The market leader in the bottled water industry i.e.
Nestle Pure Life follows the RO process. Other companies in the industry either
follow the reverse osmosis (RO) or distillation process. Some brands have local plants
and some have imported plants setup.
Technology requires expertise and experience. Nestle Pure Life has the best expertise
and experience in this field and its difficult for any other competitor to copy it. It is
difficult for companies to shift from one process to another. It requires huge
investment
SOCIO CULTURAL: It is facing no ethical problems. Some people feel that selling
water is unethical; however growing awareness has created change in thinking. 32%
of diseases in Pakistan are because of drinking contaminated water so people are now
shifting towards safe and hygienic water.
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COMPETITIVE POSITION FACTOR
They can differentiate on bases of providing high quality, and a premium product.
They are the market leaders and can emphasize on this point.
Being a multinational company their brand image is also very strong. Industry as a
whole is also very attractive.
This competitive advantage is sustainable because Nestle Pure Life is continuously

carrying out campaigns to strengthen its brand name and build up trust of consumers.
Our focus group revealed that Nestle Pure Life is top of mind recall and has a very
strong brand name and that Nestle water is known because of Nestle Pure Life.
Nestlé’s bottle design is patented and cannot be copied.
MILE AND SNOWS MODEL
PROSPECTOR
According to the Mile and Snow’s model Nestle Pure Life is a Prospector. They came
as pioneers in water industry. They were the first one to start their new brand Nestle
Pure Life. They have extensive distribution channels and are opportunity seekers.
They are able to respond well to market changes and competitors through strong
customer and market knowledge and hold 55% of market share.
Being a prospector they focus on growth by looking into new market opportunities
and consumers segments.
DEFENDER
AquaFina and Kinley are currently defenders in the industry. They have low price
however offer good quality and are considered safe for drinking purposes. They do
not pay enough attention to new marketing opportunities or product development and
therefore come under defender categories.
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REACTOR
Sufi and Springley are the reactors, they do not have any well defined competitive
strategy and lack a strong distribution channel and have low availability. They do not
have an aggressive marketing approach towards product development as that of its
competitors
ECONOMIC CYCLE OF THE INDUSTRY
Currently the industry is in growth stage, however the Changes in the economy will
affect Nestle Pure Life, if the inflation rate goes up this can lead to an increase in the
cost of production. Inflation in Pakistan has caused the cost of raw material to
increase. The bottling process has become more expensive.
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We conducted research to analyze the potential for 0.5 ml water bottle. Reaserch
objectives were:
• To understand consumers bottled water preferences

• To analyze the effectiveness of promotion campaign of Nestle Pure Life
• To determine consumer awareness about the product
• To determine ways to increase sales of Nestle Pure Life 0.5 ml water bottle
EXPLORATORY RESEARCH
Exploratory research helped us identify ways for promoting 0.5 ml water bottle.
Hence, we started off the research process by conducting our study with exploratory
research. Under the exploratory research we conducted
1. Focus groups
2. In-depth interviews and
RESULTS OF FOCUS GROUPS
One focus groups was conducted, the respondent profile was:
AGE GENDER EDUCATION LEVEL OCCUPATION

Respondent A Sana 23 Female MBA Student
Gardezi
Respondent B Ahmad 20 Male Bachelors Student
Khan
Respondent C Anum 19 Female Bachelors Student
Wasim
Respondent D Bilal 24 Male MBA Student
Ahmed
Respondent E Saad 21 Male Bachelors Student
Farrukh
Respondent F Sadia 22 Female MBA Student
Hussain
Respondent G Fatima 20 Female Bachelors Student
hamid
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Respondent H Ahsan 23 Male MBA Student

Shahid
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KEY FINDINGS OF FOCUS GROUP
Purchase pattern
Our focus of project is 0.5ml water bottle of Nestle Pure Life, we found out that
consumers prefer buying Nestle Pure Life if available, other wise they go for Aqua
fina as their second choice. As it is more ‘on the go’ consumption, consumer wants it
to be available.
Consumption pattern
0.5 ml water bottle is used by consumer, when they are travelling or hanging out with
friends. They purchase it whenever they feel thirsty, as purchase decision is
completely impulse. They like carrying the small bottle with them every where such
as college office etc. on average at least each university going student consumes one
bottle.
Availability
Nestle pure life is available almost at every small shop to every departmental store. So
there weren’t any availability issues.
Most of the respondents use the products of Nestle often. Therefore it’s simply
another of their product being added to the list. The fact that mineral water is sealed
and has passed through the necessary purification processes is an incentive for them
to purchase it. The most important attribute when they purchase Pure Life is that it
adds value to their life.
SUMMARY OF FOCUS GROUP FINDINGS
The Focus group revealed some of the very useful and interesting findings which can
help us in identifying the potential of Nestle Pure Life. The respondent’s top of mind
brand has always been Nestle Pure Life. Those who are moving away from Nestle
Pure Life are doing so because of its higher price, and cheaper packaging (inferior
quality of the seal in recent times) also because as per the participants competitors’
33 | P a g e
are offering mineral water. Also some of the respondents proved to be more patriotic
and did not like taking mineral water of any Multinational firm.
The focus group conducted with the students of Lahore School of Economics we
found out that they prefer buying 500ml - 1 Liter bottles on daily basis for regular use
to kill their thirst.
LIMITATIONS OF FINDINGS
The focus group discussion tends to get biased as many respondents try to emphasize
their opinion. Some of the respondents take clue from ideas of others and agree to
what others say, without thinking over it.
IN-DEPTH INTERVIEWS
NAME: Awais Amin
DESIGNATION: Area Sales Manager, Nestle Water
DATE: 02-02-2009
LOCATION: Nestle Lahore
RESULTS OF INTERVIEW CONDUCTED AT NESTLE
Market Potential for 0.5 ml:
• good market potential for 0.5 ml

• “on the go consumption” is increasing
• awareness that has been recently increased among the people
who are out of home for school, colleges, universities, offices
or any other purposes
• Water demand increasing safe, reliable and easy to handle for
drinking.
Nestle Pure Life enjoys strong consumer loyalty towards the brand and Consumer
perception of being it a premium brand. Though consumer purchasing power has
declined due to the financial crunch but it had no effect in nestle pure life sales.
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Nestle Pure Life has maintained itself as the most trusted bottled water which helps in
generating and increasing its sales volume. However, much emphasis is not given to
the promotion of 0.5 ml water bottle, still there is a lot of potential, and lot of sales
can be generated through it. We have used both the marketing techniques which
includes above the line and below the line activities.
According to the Area Sales Manager, they always focus on consumer satisfaction
and to get their feedback we ask consumer about various aspects which includes:
• Consumer preferences
• Brand Loyalty
Consumer mindset is that nestle pure life brought Bottles water international
standards to Pakistan market so they have 100% trust in this brand.
Future Prospects of Neste Pure Life are bright, Nestle Pure Life is one of the few
products of nestle that was launched in Pakistan market and now succeeding world
wide as well.
RETAILERS AND WHOLESALERS OPINION
Retailors and whole sellers were also positive about Nestle Pure Life sales. Retailors
said that consumers top of mind has always been Nestle, and if Nestle is not available
they always complaint about it.
The prices are as follows:-
Product Name 0.5 Litre Price(Rs) 1.5 Litre Price(Rs) Profit(Rs)

Nestle Pure Life 15 28 3-4
Aquafina 13 25 -
Kinley 15 25 -
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ANALYSIS OF CONSUMER SURVEY
RESPONDENT PROFILE
Gender Age Bracket Income Education
Male / 20 to 30 + 15000-36000 above Bachelors and above

female
CONSUMER AND RETAILER FREQUENCY TABLES
GENDER
Frequency Percent Valid Percent Cumulative Percent
Valid MALE 44 73.3 73.3 73.3
FEMALE 16 26.7 26.7 100.0
Total 60 100.0 100.0
44 (73.33%) were males and 16 (26.67%) were females. This means that the majority
of people who buy Nestle Pure Life are males.
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WHERE DO YOU PURCHASE NESTLE
Valid Cumulative
Frequency Percent Percent Percent
Valid SMALL SHOPS 21 35.0 35.0 35.0
DEPARTMENTAL
12 20.0 20.0 55.0
STORES
GENERAL STORE 10 16.7 16.7 71.7
HOME DELIVERY 17 28.3 28.3 100.0
Total 60 100.0 100.0
21 (35%) said that they bought at Nestle in small shops, 17 (28.3%) preferred home
delivery, 12 (20%) bought Nestle in departmental stores. This means that a majority
of people buy Nestle at small shops.
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WHERE DO YOU USE

Valid Cumulative
Valid HOME 24 40.0 40.0 40.0
TRAVELING 2 3.3 3.3 43.3
COLLEGE 20 33.3 33.3 76.7
PICNICS 1 1.7 1.7 78.3
EATING
2 3.3 3.3 81.7
OUT
OFFICE 11 18.3 18.3 100.0
Total 60 100.0 100.0
24 (40%) use Nestle water at home, 20 (33.3%) use Nestle in college, 11 (18.3%) use
Nestle water at the office. This means that a majority of people use Nestle water at
home.
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MARKETING
EACH PLAN OF ATTRIBUTE-TASTE
BRAND-APPROPRIATE NESTLE PURE LIFE
Valid Cumulative
Valid NO RESPONSE 6 10.0 10.0 10.0
NESTLE
32 53.3 53.3 63.3
PURELIFE
AQUAFINA 12 20.0 20.0 83.3
KINLEY 10 16.7 16.7 100.0
Total 60 100.0 100.0
32 (53.3%) like the taste of Nestle water, 12 (20%) like the taste of Aquafina, 10
(16.7%) like the taste of Kinley. This means that a majority of people like Nestle Pure
Life’s taste.
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EACH BRAND-APPROPRIATE ATTRIBUTE-PRICE

Valid Cumulative
NESTLE
50 83.3 83.3 86.7
PURELIFE
AQUAFINA 8 13.3 13.3 100.0
Total 60 100.0 100.0
50 (83.3%) prefer Nestle based on price while 8 (13.3%) think that Aquafina is better
priced. This means that a majority of people prefer Nestle based on price and Nestle is
a premium priced product.
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EACH BRAND-APPROPRIATE ATTRIBUTE-QUALITY

Valid Cumulative
NESTLE
43 71.7 71.7 80.0
PURELIFE
AQUAFINA 12 20.0 20.0 100.0
Total 60 100.0 100.0
43 (71.7%) prefer the quality of Nestle while 12 (20%) think that Aquafina has better
quality. This means that a majority of people prefer Nestle based on quality.
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EACH BRAND-APPROPRIATE ATTRIBUTE-AFTER TASTE

Valid Cumulative
NESTLE
45 75.0 75.0 86.7
PURELIFE
AQUAFINA 8 13.3 13.3 100.0
Total 60 100.0 100.0
45 (75%) like the after taste of Nestle while 8 (13.3) like the after taste of Aquafina.
This means that a majority of people like the after taste of Nestle.
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EACH BRAND-APPROPRIATE ATTRIBUTE-PURITY

Valid Cumulative
NESTLE
48 80.0 80.0 86.7
PURELIFE
AQUAFINA 8 13.3 13.3 100.0
Total 60 100.0 100.0
48 (80%) think that Nestle Pure Life is a pure drinking water while 8 (13.3%) think
that Aquafina is a pure drinking water. This means that a majority of people think that
Nestle Pure Life is more pure than Aquafina.
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MEDIUM USED MOST

Valid Cumulative
Valid TV 46 76.7 76.7 76.7
MAGAZINE 11 18.3 18.3 95.0
NEWSPAPER 3 5.0 5.0 100.0
Total 60 100.0 100.0
46 (76.7%) watch TV the most, 11 (18.3%) read magazines and 3 (5%) read the
newspaper. This means that the medium used most in TV followed by magazines and
lastly newspapers.
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CHANNEL WATCHED MOST

Valid Cumulative
Valid GEO 39 65.0 65.0 65.0
AAJ TV 2 3.3 3.3 68.3
ARY 11 18.3 18.3 86.7
ANY ENGLISH
8 13.3 13.3 100.0
MOVIES CHANNEL
Total 60 100.0 100.0
39 (65%) watch GEO, 11 (18.3%) watch ARY, 8 (13.3%) watch any English movies
channel and 2 (3.3%) watch AAJ TV. This means that a majority of people watches
GEO.
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MAGAZINE PURCHASED MOST

Valid Cumulative
Valid TIME 37 61.7 61.7 61.7
READERS
12 20.0 20.0 81.7
DIGEST
ANY OTHER 11 18.3 18.3 100.0
Total 60 100.0 100.0
37 (61.7%) read the Time magazine, 12 (20%) read Readers Digest and 11 (18.3%)
read any other magazine. This means that a majority of people reads the Time
magazine.
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CHANNEL LISTENED TO MOST

Valid Cumulative
Valid FM 89 45 75.0 75.0 75.0
FM 91 7 11.7 11.7 86.7
FM 100 6 10.0 10.0 96.7
FM 103.2 2 3.3 3.3 100.0
Total 60 100.0 100.0
45 (75%) listen to FM89, 7 (11.7%) listen to FM91, 6 (10%) listen to FM100 and 2
(3.3%) listen to FM103.2. This means that the channel listened to most is FM89 out
of all the radio channels available.
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NEWSPAPER READ THE MOST

Valid Cumulative
Valid THE NEWS 10 16.7 16.7 16.7
DAWN 15 25.0 25.0 41.7
DAILY TIMES 10 16.7 16.7 58.3
JANG 13 21.7 21.7 80.0
THE NATION 7 11.7 11.7 91.7
BUSINESS
5 8.3 8.3 100.0
RECORDER
Total 60 100.0 100.0
15 (25%) read Dawn the most, followed by 13 (21.7%) who read Jang, 10 (16.7%)
read The News, 10 (16.7%) read the Daily Times, 7 (11.7%) read The Nation and 5
(8.3%) read the Business Recorder. This means that the newspaper read the most is
Dawn.
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SATISFIED WITH PURE LIFEQUALITY

Valid Cumulative
Valid YES 45 75.0 75.0 75.0
NO 15 25.0 25.0 100.0
Total 60 100.0 100.0
45 (75%) are satisfied with the quality of Nestle and 15 (25%) are not satisfied with
the quality. This means that a majority of people prefer to buy Nestle Pure Life on the
basis of quality.
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IF YES-SATISFIED WITH PURE LIFE PRICE

Valid Cumulative
Valid YES 53 88.3 88.3 88.3
NO 7 11.7 11.7 100.0
Total 60 100.0 100.0
53 (83.3%) are satisfied with the price of Nestle Pure Life and 7 (11.7%) are not
satisfied with the price. This means that a majority of people buys Nestle Pure Life
than any other brand.
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WHICH BRAND-NESTLE PURE LIFE NOT AVAILABLE

Cumulative
Frequency Percent Valid Percent Percent
Valid AQUAFINA 45 75.0 75.0 75.0
KINLEY 15 25.0 25.0 100.0
Total 60 100.0 100.0
45 (75%) prefers Aquafina if Nestle is not available and 15 (25%) prefer Kinley. This
means that a majority of people prefer to buy Aquafina if Nestle Pure Life is not
available.
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RETAILER FREQUENCIES
WHICH BRANDS CARRIED
Valid Cumulative
Valid PURE LIFE 16 47.1 47.1 47.1
AQUAFINA 3 8.8 8.8 55.9
SUFI 3 8.8 8.8 64.7
SPRINGLEY 2 5.9 5.9 70.6
KINLEY 8 23.5 23.5 94.1
PURE LIFE &
1 2.9 2.9 97.1
KINLEY
PURE LIFE &
1 2.9 2.9 100.0
AQUAFINA
Total 34 100.0 100.0
16 (47.1%) of retailers carry Nestle Pure Life, 8 (23.5%) carry Kinley, 3 (8.8%) carry
Aquafina, 3 (8.8%) carry Sufi. This means that a majority of retailers carry Nestle
Pure Life.
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MOST PURCHASED BRAND

Valid Cumulative
Valid NESTLE PURE
30 88.2 88.2 88.2
LIFE
AQUAFINA 3 8.8 8.8 97.1
SPRINGLEY 1 2.9 2.9 100.0
Total 34 100.0 100.0
30 (88.2%) purchase Nestle Pure Life, 3 (8.8%) purchase Aquafina and 1 (2.9%)
purchase Springley. This means Nestle Pure Life is the most purchased brand.
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TRAIT PREFERRED MOST-TASTE

Valid Cumulative
NESTLE PURE
20 58.8 58.8 67.6
LIFE
AQUAFINA 3 8.8 8.8 76.5
SPRINGLEY 1 2.9 2.9 79.4
SUFI 7 20.6 20.6 100.0
Total 34 100.0 100.0
20 (58.8%) prefer the taste of Nestle Pure Life, 7 (20.6%) prefer the taste of Sufi, 3
(8.8%) prefer the taste of Aquafina and 1 (2.9%) prefer the taste of Springley. This
means that a majority of people prefer the taste of Nestle Pure Life.
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TRAIT PREFERRED MOST-PRICE

Valid Cumulative
NESTLE PURE
19 55.9 55.9 70.6
LIFE
AQUAFINA 5 14.7 14.7 85.3
SPRINGLEY 3 8.8 8.8 94.1
SUFI 2 5.9 5.9 100.0
Total 34 100.0 100.0
19 (55.9%) prefer Nestle Pure Life based on price, 5 (14.7%) prefer Aquafina, 3
(8.8%) prefer Springley and 2 (5.9%) prefer Sufi. This means that people prefer to
buy Nestle Pure Life than any other brand of water available.
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TRAIT PREFERRED MOST-QUALITY

Valid Cumulative
NESTLE PURE
21 61.8 61.8 67.6
LIFE
AQUAFINA 6 17.6 17.6 85.3
SPRINGLEY 5 14.7 14.7 100.0
Total 34 100.0 100.0
21 (61.8%) prefer Nestle based on quality, 6 (17.6%) prefer Aquafina and 5 (14.7%)
prefer Springley. This means that a majority of people like the quality of Nestle Pure
Life than any other brand.
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TRAIT PREFERRED MOST-AFTER TASTE

Valid Cumulative
NESTLE PURE
21 61.8 61.8 79.4
LIFE
AQUAFINA 4 11.8 11.8 91.2
SPRINGLEY 2 5.9 5.9 97.1
SUFI 1 2.9 2.9 100.0
Total 34 100.0 100.0
21 (61.8%) like the after taste of Nestle Pure Life, 4 (11.8%) like Aquafina, 2 (5.9%)
like Springley. This means that a majority like the after taste of Nestle Pure Life than
any other brand.
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TRAIT PREFERRED MOST-PURITY

Valid Cumulative
NESTLE PURE
26 76.5 76.5 85.3
LIFE
AQUAFINA 4 11.8 11.8 97.1
SPRINGLEY 1 2.9 2.9 100.0
Total 34 100.0 100.0
26 (76.5%) prefer Nestle in terms of purity, 4 (11.8%) prefer Aquafina and 1 (2.9%)
prefer Springley. This means that a majority of people think that Nestle Pure Life is
more pure than any other brand.
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MAJOR CUSTOMERS OF 0.5 LITRE NESTLE

Valid Cumulative
Valid TEENAGER
24 70.6 70.6 70.6
S
WOMEN 3 8.8 8.8 79.4
MEN 7 20.6 20.6 100.0
Total 34 100.0 100.0
In the major customer category for 0.8 litre 24 (70.6%) are teenagers, 7 (20.6%) are
men and 3 (8.8%) are females. This means that the major customers of Nestle Pure
Life are teenagers.
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MAJOR CUSTOMERS OF 1.5 LITRE NESTLE

Valid Cumulative
Valid WOMEN 5 14.7 14.7 14.7
MEN 27 79.4 79.4 94.1
OTHERS 2 5.9 5.9 100.0
Total 34 100.0 100.0
In the major customer category for 1.5 litre 27 (79.4%) are men and 5 (14.7%) are
females. This means that the major customers of 1.5 Litre are males followed by
females.
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CONSUMER AND RETAILER CROSS TABS
GENDER * DO YOU CONSUME NESTLE

DO YOU CONSUME
NESTLE
YES NO Total
GENDER MALE Count 34 10 44
77.3% 22.7% 100.0%
FEMAL Count 12 4 16
E 75.0% 25.0% 100.0%
Total Count 46 14 60
76.7% 23.3% 100.0%
Out of a total of 44 males, 34 consumed Nestle and 10 did not. Out of 16 Females, 12
consume Nestle and 4 did not consume Nestle. This means that out of the total, 76.7%
consume Nestle and 23.3% do not.
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GENDER * WHICH BRAND OF BOTTLED WATER USED

IF YES-WHICH BRAND USED
NESTLE AQUAFIN ANY OTHER
PURE LIFE A AVAILABLE Total
GENDER MALE Count 34 9 1 44
% within
77.3% 20.5% 2.3% 100.0%
GENDER
FEMAL Count 12 4 0 16
E % within
75.0% 25.0% .0% 100.0%
GENDER
Total Count 46 13 1 60
% within
76.7% 21.7% 1.7% 100.0%
GENDER
Out of 44 males, 34 used Nestle, 9 used Aquafina and 1 used any other available. Out
of 16 females, 12 used Nestle and 4 used Aquafina. This means that out of the total
76.7% used Nestle, 21.7% used Aquafina and 1.7% used any other available.
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GENDER * HOW OFTEN NESTLE PURE LIFE BOUGHT

HOW OFTEN NESTLE PURE LIFE BOUGHT
NO ONCE IN A ONCE IN A
RESPONSE DAILY WEEK MONTH Total
GENDER MALE Count 1 21 22 0 44
% within
2.3% 47.7% 50.0% .0% 100.0%
GENDER
FEMAL Count 1 8 5 2 16
E % within
6.2% 50.0% 31.2% 12.5% 100.0%
GENDER
Total Count 2 29 27 2 60
% within
3.3% 48.3% 45.0% 3.3% 100.0%
GENDER
Out of 44 males, 21 bought Nestle daily, 22 bought once in a week. Out of 16

females, 8 bought Nestle daily, 5 bought once in a week and 2 bought once in a
month. This means that out of the total 48% bought Nestle on a daily basis, 45% once
in a week and 3.3% once in a month.
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GENDER * WHERE DO YOU USE

WHERE DO YOU USE
HOME TRAVELING COLLEGE PICNICS EATING OUT OFFICE Total
GENDER MALE Count 19 1 14 0 0 10 44
%
within 100.0
43.2% 2.3% 31.8% .0% .0% 22.7%
GEND %
ER
FEMALE Count 5 1 6 1 2 1 16
%
within 100.0
31.2% 6.2% 37.5% 6.2% 12.5% 6.2%
GEND %
ER
Total Count 24 2 20 1 2 11 60
%
within 100.0
40.0% 3.3% 33.3% 1.7% 3.3% 18.3%
GEND %
ER
Out of 44 males, 19 used Nestle at home, 14 used in college, 10 used at the office. Out
of 16 females, 6 used at college, 5 at home, 2 while eating out and the rest either
during traveling or picnics or office. This means that 40% use Nestle at home, 33.3%
at college, 18.3% at the office and the rest during traveling or picnics or office.
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AGE * DO YOU USE BOTTLED WATER

DO YOU USE BOTTLED WATER
YES NO Total
AGE NO RESPONSE Count 1 0 1
% within AGE 100.0% .0% 100.0%
LESS THAN 20 Count 8 3 11
% within AGE 72.7% 27.3% 100.0%
21-35 Count 23 4 27
% within AGE 85.2% 14.8% 100.0%
26-30 Count 14 3 17
% within AGE 82.4% 17.6% 100.0%
31 AND ABOVE Count 3 1 4
% within AGE 75.0% 25.0% 100.0%
% within AGE 81.7% 18.3% 100.0%
Out of people who were less than 20, 8 used bottled water and 3 did not, from age 21-
35, 23 used bottled water and 4 did not, from 26-30, 14 used bottled water and 3 did
no, from 31 and above, 3 used bottled water and 1 did not. This means that 81.7% of
people of all ages use bottled water and 18.3% do not.
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AGE * DO YOU CONSUME NESTLE

DO YOU CONSUME NESTLE
YES NO Total
AGE NO RESPONSE Count 1 0 1
% within AGE 100.0% .0% 100.0%
LESS THAN 20 Count 7 4 11
% within AGE 63.6% 36.4% 100.0%
21-35 Count 20 7 27
% within AGE 74.1% 25.9% 100.0%
26-30 Count 14 3 17
% within AGE 82.4% 17.6% 100.0%
31 AND ABOVE Count 4 0 4
% within AGE 100.0% .0% 100.0%
% within AGE 76.7% 23.3% 100.0%
Out of people who were less than 20, 7 used Nestle water and 4 did not, from age 21-
35, 20 used Nestle water and 7 did not, from 26-30, 14 used Nestle water and 3 did
no, from 31 and above, 4 used Nestle water. This means that 76.7% of people of all
ages use Nestle water and 23.3% do not.
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AGE * PACKAGING BOUGHT MOST OFTEN

PACKAGING BOUGHT MOST
OFTEN
0.5 LITRE 1.5 LITRE 19 LITRE Total
AGE NO RESPONSE Count 1 0 0 1
% within
100.0% .0% .0% 100.0%
AGE
LESS THAN 20 Count 6 4 1 11
% within
54.5% 36.4% 9.1% 100.0%
AGE
21-35 Count 14 3 10 27
% within
51.9% 11.1% 37.0% 100.0%
AGE
26-30 Count 10 2 5 17
% within
58.8% 11.8% 29.4% 100.0%
AGE
31 AND Count 0 1 3 4
ABOVE % within
.0% 25.0% 75.0% 100.0%
AGE
% within
51.7% 16.7% 31.7% 100.0%
AGE
Out of people who were less than 20, 6 bought 0.5 litre, 4 bought 1.5 litre and 1
bought 19 Litre. From age 21-35, 14 bought 0.5 litre, 3 bought 1.5 litre and 10 bought
19 Litre. From 26-30, 10 bought 0.5 litre, 2 bought 1.5 litre and 5 bought 19 Litre.
From 31 and above, 0 bought 0.5 litre, 1 bought 1.5 litre and 3 bought 19 Litre. This
means that 51.7% bought 0.5 litre, 31.7% bought 19 Litre and 16.7 bought 1.5 Litre.
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GENDER * IF YES-WHICH BRAND USED

NESTLE AQUAFIN ANY OTHER
PURE LIFE A AVAILABLE Total
GENDER MALE Count 34 9 1 44
% within
77.3% 20.5% 2.3% 100.0%
GENDER
FEMAL Count 12 4 0 16
E % within
75.0% 25.0% .0% 100.0%
GENDER
% within
76.7% 21.7% 1.7% 100.0%
GENDER
Out of 44 males, 34 used Nestle, 9 used Aquafina and 1 used any other available. Out
of 16 females 12 used Nestle and 4 used Aquafina. This means that out of the total
76.7% use Nestle, 21.3% use Aquafina and 1 any other available.
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AGE * IF YES-WHICH BRAND USED

NESTLE ANY
PURE OTHER
LIFE AQUAFINA AVAILABLE Total
AGE NO Count 1 0 0 1
RESPONSE %
within 100.0% .0% .0% 100.0%
AGE
LESS THAN Count 7 4 0 11
20 %
within 63.6% 36.4% .0% 100.0%
AGE
21-35 Count 20 6 1 27
%
within 74.1% 22.2% 3.7% 100.0%
AGE
26-30 Count 14 3 0 17
%
within 82.4% 17.6% .0% 100.0%
AGE
31 AND Count 4 0 0 4
ABOVE %
within 100.0% .0% .0% 100.0%
AGE
%
within 76.7% 21.7% 1.7% 100.0%
AGE
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Out of people who were less than 20, 7 used Nestle and 4 used Aquafina. From age
21-35, 20 used Nestle, 6 used Aquafina and 1 used any available. From 26-30, 14
used Nestle, 3 used Aquafina and 0 used any available. From 31 and above, 4 used
Nestle, 0 used Aquafina and 0 used any available. This means that 76.7% used Nestle,
21.7% used Aquafina and 1.7% used any other available.
CATEGORY OF BUSINESS * MOST PURCHASED BRAND

MOST PURCHASED BRAND
NESTLE AQUA SPRINGLE
PURE LIFE FINA Y Total
CATEGOR BAKERY Count 7 3 0 10
Y OF 70.0% 30.0% .0% 100.0%
BUSINESS
BOOKSHOP Count 2 0 0 2
100.0% .0% .0% 100.0%
MEDICAL Count 4 0 0 4
STORE 100.0% .0% .0% 100.0%
GROCERY Count 11 0 1 12
91.7% .0% 8.3% 100.0%
DEPARTMENTA Count 6 0 0 6
L STORE 100.0% .0% .0% 100.0%
88.2% 8.8% 2.9% 100.0%
71 | P a g e
Out of 10 who bought Nestle at a bakery, 7 bought Nestle and 3 bought Aquafina. All
of the 2 people who bought at a book store bought Nestle. Out of the 12 people who
bought Nestle at a grocery store, 11 bought Nestle and 1 bought Springley. All of the
4 people who bought at a medical store bought Nestle. All of the 6 people who bought
at a departmental store bought Nestle. This means that out of total 88.2% bought
Nestle, 8.8% bought Aquafina and 2.9% bought Springley.
POSITIONING MAP
72 | P a g e
73 | P a g e
VALUE CURVE
74 | P a g e
SUGGESTION FOR INCREASING SALES OF NESTLE

PURE LIFE 0.5 ML
• Increase promotion
• Increase availability
• Sponsor Major events
• Increase awareness among school going children and supply Nestle Pure Life
to schools
• Provide their 12 or 19 litre bottles to famous gyms such as Shapes, defence

club etc.
• Start promotion to create awareness about drinking water instead of

contaminated drinking water
• Provide door to door service on monthly basis for convenience of existing and
potential customers.
75 | P a g e
COMPETITIVE SWOT ANALYSIS
COMPETITORS STRENGTH
Distribution muscles are very strong due to their existing distribution for carbonated
soft drinks.
( Source: Mansoor Ahmad, ABM, Aqua fina)
COMPETITORS WEAKNESSES
Low brand equity, market share, image of CSD which is not a sign of healthy image,
lack of brand building or set them on the top of mind of their potential customers.
76 | P a g e
REACTION PATTERN OF COMPETITORS
Nestle is very proactive in term of their competitors while Aqua fina and
Kinley are very reactive in terms of promotions and pricing. For example
Nestle has increased its 1.5 liter bottle price to Rs.28 from Rs.25 while other
two companies have also done the same. As soon as nestle pure life launched
their international campaign, Pepsi reacted in the same way by launching their
campaign.
77 | P a g e
MARKETING PLAN
0.5ml bottle of Nestle Pure Life
Reasons to Select 0.5 ml Bottle
We have selected the 0.5 ml size of Nestle Pure Life, to re-launch it because
o This SKU is being ignored.

o Product image is not clear in the mind of customers.
o According to our study, there is no problem in the product development, the
problems of failure are with the positioning, distribution and advertisement
part (which is absent for this bottle).
78 | P a g e
Market Potential for 0.5 ml:
There is a good market potential for 0.5 ml because the “on the go consumption”
is increasing. It is due to the awareness that has been recently increased among the
people who are out of home for school, colleges, universities, offices or any other
purposes and demanded water that is safe, reliable and easy to handle for drinking.
o Keeping in mind the market potential, we will focus on promotional

campaigns to increase sales of 0.5ml.
79 | P a g e
Response from competitors if we change our marketing mix:
Price:
Price points are determined by Nestle Pure Life. If Nestle people change prices, its
competitors will also change their price accordingly. Now there are companies like
Pepsi, Coca Cola and their brand names are very strong. But Nestle should also
consider the fact that, if Pure Life will increase its price then customers will switch to
other brands because now they have choice of other quality brands. Keeping this in
mind we are not going to bring any change in the price.
Product:
Currently competitors are offering product in sizes of 0.5 ml. such as Aqua Fina and
Kinley. Now in the market there are very strong brands so they give quick response to
every action of Nestle.
Promotional features:
Nestle allocates a huge amount of their money on promotions.
o Take part in events, occasions and trade to expose and advertise their product.
o Town storming activities
o Shop level competition (competition for the best decorated shop)
o Town shops competition
o Event Sponsorships
o Provided computers to schools
o Water tube wells in villages/rural areas.
These activities are effective. They are not commercial; they are conducted as a
responsibility
80 | P a g e
Before the entry of Aqua fina and Springley there was no other company who was
doing effective advertisement and promotions as Pure Life is doing. But now Aqua
Fina and Springley are doing very effective advertisement. Pepsi is allocating budget
for advertisement and promotions of Aqua fina. Recently they have sponsored
Marathon race in Pakistan. They also give quantitative discounts (2+1, 4+1etc.)
Currently they are not focusing on advertisements because they are not in situation of
doing heavy production. Currently advertisements are only through billboards.
Distribution Channel:
Four Distribution channels are used:
o Retail outlets (shops, grocery/super stores)

o Food outlets (restaurants, canteens, hotels)
Distribution channel of Nestle Pure Life is very strong they have nation wide
distribution but Cola and Pepsi have distribution synergy with their carbonated drinks
their distribution channel is also strong. So in future Nestle needs to focus on its
distribution channel and they should try to cover those areas where cola companies
have their networks.
Aqua fina has very strong distribution. They have direct distribution system. The
product is supplied directly from warehouse to retail outlets without any whole
sellers. Aqua fina in two years covered all major cities of Pakistan.
Qarshi will be one of the major competitors of Nestle in future because of its brand
name which is associated with NATURAL PRODUCTS and its nation wide
distribution. Coca cola also has very strong distribution channel and brand name
which will be a threat for Nestle in future.
81 | P a g e
Target Market for 0.5 ml bottle
Demographic Characteristics
o Sex: Male & Female

o Age: 8-16yrs old children and 16-30yrs old females.
o Income: A+, A, B (A+ & A = 40,000+, B= 25,000+)
o Education: School going children, college & university going females,
mothers of young children.
Psychographic Characteristics
o Health conscious people

o Active people
Product Usage Characteristics
0.5 ml bottle is a single serve packaging and is used for out of home consumption.
Usage occasions of 0.5 ml bottle are as follows:
o Schools
o Colleges
o Office
o Traveling
o Picnics
Benefits
The benefits of using the 0.5 ml bottle are as follows:
82 | P a g e
o Affordable price.
o Handy.
o Females can keep it in their hand bags while children can keep it in their
school bags.
o For on-the-go consumption.
o Healthy and Hygienic.
o Purity.
o Minerals.
o Disposable bottle.
Needs Analysis
Current needs of the target market
The need of the target market is to have pure and hygienic mineral water at an
affordable price which is handy and they can carry it to any place. The need of the
children is to keep the bottle in their school bags and can easily carry it to their
schools while need of the females is to keep the bottle in their hand bags and carry it
to college, university, office and can use it during the traveling.
How well is the current product offering meeting these needs?
Nestle Pure life is widely meeting the needs of its target market. The product is
designed in such a way that it is handy and children & females can easily carry it to
any place. While the price of the product is also affordable.
How are the needs of the target market expected to change in the near future?
What about changes in distant future?
83 | P a g e
People are becoming more health conscious and awareness about pure and hygienic
water is increasing rapidly. Over the last few years, bottled water consumption has
increased as compared to other beverages. Nestlé has a good share of the throat.
o It is forecasted that in near future people in Pakistan would be ready to spend

more money on expensive water bottles. People’s purchasing power is
increasing and so the consumption is also increasing.
Current Marketing Objectives & Performance
The objectives are as follows:
o Improve brand equity.

o Increase Sales by 20%
84 | P a g e
Consistency of objectives with the recent changes in the marketing environment

and the needs of target market
Brand Equity
As awareness among consumers is increased for safe and hygienic bottled water,
Nestlé’s brand name is strengthening for high quality processed water.
It is a short term objective. As awareness among consumers is increased for safe and
hygienic bottled water, Nestlé’s brand name is strengthening for high quality
processed water. Nestle pure life do brand tracking every month which includes top of
the mind recall, band recall, last campaign recall and surveys for insisters and
rejecters. 80% of their customers according to their research are insisters. Brand
loyalty and awareness is the specific and measurable outcome which results in more
sales and profitability. The following strengths and weaknesses can be a factor for
improving brand equity.
o Highly accepted brand name (strength)

o Growing awareness towards pure and hygienic bottled water (opportunities).
But when the company will face profitability pressure it will be unable to allocate
many resources for the brand equity development. The company spends much already
on R&D and currently on setting up a new factory.
Changes in the environment
The percentage of fake brands and look alike brands is increasing which directly
influences Nestlé’s brand name. Thus Nestle has to take protective measures to
further strengthen its brand name and differentiate from others.
Secondly some people are also selling tap water in the empty original bottles of
nestle, by making fake flayers of the Pure Life, so this can also hurt the company and
brand image.
85 | P a g e
Performance Analysis
Current performance in terms of sales, market share and profitability
o Sales: 100 million liters

o Profitability: Less than previous years
o Market Share: Currently the market share is round about 55%.It is declined
because Aqua Fina and Springley have captured many customers.
Current performance compared to other firms in the industry
Nestle being the market leader has the highest sales and market share in the industry.
Nestle spends more on creating awareness for safe and hygienic bottled water and
there are at least 80% of people who are insisters (i.e. they insist to have only nestle
pure life if it’s not available.) (source: Area Sales Manager, Nestle Pure Life)
Nestlé’s objectives are consistent with the changes in the marketing environment and
target market.
86 | P a g e
Marketing Strategies
We are going to opt for product specialization strategy as we are targeting two
segments to be served by this single product.
Target Markets
Target Market # 1: for 0.5 ml Bottle
Demographic: 8-16 years old school going children.
Income Level: For A and B class (25,000-40,000)
Geographic: Most of the cities and rural areas as well
Psychographics:
o Health conscious people

o Active people
Product Usage Characteristics:
0.5 ml bottle is mostly to be used by children while going to school. The consumers
here are children but the buyers are their mothers.
Justification for Selection of this Target Market:
87 | P a g e
It is small in size and handy so children can easily keep it in their bags.
The Government of Pakistan estimated with regard to diarrhea that water-related

disease accounts for 14 percent of illnesses for children under five and for seven
percent of all disease in people age five and older. The Pakistan Council of Research
and Water Resources (PCRWR) assesses that 40 percent of all reported illnesses are
water-related. It is estimated that 200,000 children in Pakistan die every year due to
diarrhea diseases alone. Unsafe water affects mainly rural and urban poor, who suffer
above the average from sickness and water related diseases.
Competitors that also serve this Target Market:
o Aqua Fina 0.5ml bottle.

o Vey “Chotu” 0.5ml bottle
Marketing Mix for Target Market # 1
Product Strategies
Nestle Pure Life water, in a small, and handy bottle is for out of home consumption.
Pricing Strategies
Price of 0.5 ml bottle is Rs.17. As for this product we want to increase the number of
units sold or increase the number of customers served, in order to decrease long-term
costs as predicted by the experience curve. So if the company gets a cost advantage
over its competitors it can justifiably increase the market share and gain the
88 | P a g e
competitive advantage by adopting penetration pricing strategy and the investment in

advertisement and production capacity.
Distribution Strategies
They should go for penetration into the market through strengthening their
distribution channels. Two channels are to be more focused for distribution:

o Food outlets ( school canteens)
Promotion Strategies
Promotional Strategy must have the objectives, including: sales increases, creation of
brand equity, positioning, competitive or creation of a corporate image. For Nestle
Pure Life, mostly promotions are at point of purchase e.g.
o All BTL activities

o Corporate SMS
We had to think of an intelligent cost effective way to advertise our product

because of our limited budget. We just cannot go for typical heavy T.V
commercials and stuff because of limited advertising budget again. Thus we
searched for a better means to advertise which would be less expensive and
more effective. We thus searched and decided that will go for corporate SMS
which is a service offered by this telecom company Mobilink. There are no
subscription charges for this service. All one has to do is to write down a
corporate mail to the concerned department of the telecom company and the
people in the concerned department get back as soon as possible. By availing
this service we can sent a million SMS to different people in a go. The charges
would be just 50 paisas per SMS. Mobile usage as we all know is increasing
day by day and this means of advertising 0.5 ml bottle of Pure Life would be
effective, fast and relatively very inexpensive.
Marketing mix giving a competitive advantage in the target market
89 | P a g e
Nestle Pure Life is the pioneer in launching this size i.e. first mover advantage and the
Nestle Pure Life name gives it the main competitive advantage.
Sustainability of competitive advantage

Recent surveys like top of mind recall and insister for Nestle have shown that Nestle
has a very strong brand name and that Nestle is known because of Nestle Pure Life.
Target Market # 2: for 0.5 ml Bottle
Demographic: 16- 30 years age females who are either students or working ladies,
and the mothers of young children
Income level: A and B (25,000 - 40,000 +)
Geographic: Available in all major cities of Pakistan.
Psychographic: Hygiene and health conscious females who are active and have
awareness towards safe water.
Product Usage Characteristics
Used in colleges, universities, offices and while traveling by females.
Competitor that also Serve this Target Market
The following competitors are expected to serve this target market.
90 | P a g e
o Aqua Fina 0.5ml bottle.

o Kinley 0.5ml bottle
Justification for this Target Market
Easy to carry and attractive small bottle used by females who are health conscious and
have awareness and interest towards safe drinking water.
4.1.1. Marketing Mix for Target Market # 2
Product Strategies
Nestle Pure Life in a small handy bottle is for out of home consumption.
Pricing Strategies
Price of 0.5m bottle is affordable, The objective of pricing strategy is to maximize

quantity i-e penetration pricing strategy. As for this product company wants to
increase the number of units sold or increase the number of customers served, in order
to decrease long-term costs as predicted by the experience curve. So if the company
gets a cost advantage over its competitors it can justifiably increase the market share
and gain the competitive advantage by adopting penetration pricing strategy and the
investment in advertisement and production capacity.
Distribution Strategies
They should go for penetration into the market through strengthening their
distribution channels. Two channels are to be more focused for distribution:

o Food outlets ( school canteens)
91 | P a g e
Promotion Strategies
Promotional Strategy must have the objectives including: sales increases, product
acceptance (0.5 ml Bottle), creation of brand equity, positioning, competitive or
creation of a corporate image. For Nestle Pure Life, mostly promotions are at point of
purchase e.g.
o All BTL activities

o Corporate SMS
Already explained above in Target Market # 1
Marketing mix giving a competitive advantage in the target market
Nestle Pure Life is the pioneer in launching this size i.e. first mover advantage and the
Nestle Pure Life name give it the main competitive advantage.
Sustainability of Competitive Advantage

Recent surveys like top of mind recall and insister for Nestle have shown that Nestle
has a very strong brand name and that Nestle is known because of Nestle Pure Life.
92 | P a g e
SALES FORECASTING & PLANNING

Total Population of Pakistan= 165 million (approx).
Distribution (%age) of Nestle water in all four provinces of Pakistan:
• Punjab: 46%.
93 | P a g e
• Sindh: 35%.
• NWFP: 12%.
• Baluchistan: 7%.
Nestle Pakistan is currently producing or refining around 228 million liters of water
annually and it is expected that it will reach around 300 million next year if they will
properly utilized their plant in Karachi.
SKU’s of Pure Life and percentage of revenues generated from each:
• 0.5 liter= 5%
• 1.5 liter= 6%
• 5 liter= 30%
• 12 liter= 16%
• 19 liter= 43%
Total Population of Punjab= 85 million (approx).
The total usage of Nestle pure life in Punjab (volume) = 46% * 228 million
liters
= 104.88 million liters
Currently total sales in volume of 0.5 ml bottle in Punjab = Total consumption of

pure life in Punjab* %age
of revenues generated from 0.5 lit
= 104.88 million lit * 5%
= 5.244 million lit.
Total sales in Punjab for 0.5 ml = Volume * Price
= 5.244 mill lit * 15
=Rs. 78.66 million
Total Population of Lahore= 10 million (approx).
There are more than 6 million people of Lahore that depends on around 400 tube
wells for drinking water and some other small uses.
Sales in Lahore of 0.5 lit of pure life =Share of 0.5 lit of Lahore * Sales of Punjab
for .5 lit 20%
94 | P a g e
= 20% * Rs.78.66 mill.
= Rs.15.732 mill.
Now our target for the next year is to increase our sales for 0.5 lit by 20% for year
2009-2010.
So forecasted sales for year 2009-2010 for 0.5 lit = Rs. 15.732 mill (1+20%)
= Rs.18.8789 mill.
TOTAL SALES IN LAHORE PER MONTH
95 | P a g e
Sales are varied according to different seasons and we have forecasted our figures
according to that.
% age of
Months sales Sales in Rs
Peak
Season
1 April 7% 1321488
2 May 10% 1887840
3 June 15% 2831760
4 July 15% 2831760
Mid or
Average
Season
5 August 13% 2454192

6 September 10% 1887840
7 October 6% 1132704
8 November 5% 943920
Low
Season
9 December 5% 943920
10 January 4% 755136
11 February 4% 755136
12 March 6% 1132704
Total 100% 18878400
The budget for advertising and other promotion is also increased by 20% as of sales.
Now the new forecasted budget = 1,700,000 (1+20%)
= 2040000
96 | P a g e
APPENDIX
CONSUMER QUESTIONNAIRE
We are students of Lahore School of Economics and are conducting a survey on

Nestle Pure Life. The results of the survey will be entirely used for academic
purposes. Your corporation will be appreciated.
1) Do you use bottled water?
• Yes
• No
If yes then proceed, otherwise please stop.
Indicate our degree of liking for each of the brands of bottled water:
Like a lot like neutral dislike dislike

alot
5 4 3 2
1
Nestle Pure Life
Kinley
Springley
Sufi
Aqua fina
2) Which brand of bottled water you use?
o Nestle Pure Life

o Aqua fina
o Springly
o Sufi
97 | P a g e
o Any other that is available __________________________ Please specify
If you use Nestle Pure Life than proceed, if not please stop here
3) Which packaging do you buy most often?

• ½ litre
• 1.5 litre
4) How often do you buy Nestle Pure Life ½ litre?
• Daily
• Once in a week
• Once in a month
• Others ___________________________ (Please specify)
5) Are you satisfied with the packaging of ½ litre Nestle Pure Life?
• Yes
• No
If no
6) What do you think can be improved about packing of ½ litre Nestle Pure
Life?
• Color
• Shape
• Material
• Design
• Size
• Others ____________________________ please specify
7) Where do you use ½ litre Nestle pure Life?
• Home
• Traveling
• College
• Picnics
• Eating out
• Office
• Any other ______________________ please specify
8) Where do you purchase ½ litre Nestle pure Life from?
• Small shops
• Departmental store
• General store
• Others____
98 | P a g e
9) Are you satisfied with the availability of ½ litre Nestle pure Life?
• Yes
• No
If not,
10) Where do you wish it to be available?
__________________________________ please mention
11) Which Brand would you prefer if ½ litre packaging of Nestle Pure Life is
not available?
• Nestle Pure Life

• Aqua fina
• Springly
• Sufi
• Any other ____________________________ please specify
12) How important is each factor in influencing your bottle water purchase
decision:
Most not
least
important important neutral important

important
5 4 3 2
1
Packaging
Purity
Price
Availability
99 | P a g e
Aroma
13) Rank the importance of each attribute of Nestle Pure Life in your
opinion:
Most not
least
important important neutral important

important
5 4 3 2
1
Packaging
Purity
Price
Availability
Aroma
For each of the brands, select most appropriate attribute it possesses (you
can select more than one):
Nestle Pure AquaFina Springley Others

Life
______
Taste
Price
Quality
After Taste
100 | P a g e
Purity
14) Have you seen the latest advertisement of Nestle Pure Life? If Yes, Which
one?
15) Which medium do you use the most?

16). Which channel
TV if youdo you watch
selected the
TV go to most?
Q 16.
• PTV
Magazine if you selected TV go to Q 17.
• GEO
Radio • AAJ TV
if you selected TV go to Q 18.
• TV ONE
Newspaper • ATV if you selected TV go to Q 19.
• ARY
• HUM TV
• Any English movies channel ___________________
please specify
• Any Indian movies channel ____________________
please specify
• Others ____________ Please specify
17). Which magazine do you purchase the most?
• She
• Libas
• Me and my wedding
• Time
• Readers digest
• Voyage
• Any other _______________________________ please
specify
18). Which channel do you listen to the most?
• FM 100
• FM 101
• FM 102
• FM 103
• Any other ________________________________ please
specify
101 | P a g e
19). Which newspaper do you read the most?

20) Are you satisfied with the quality of ½ litreNestle Pure Life?
• Yes
• No
If no;
21)How do you think quality can be improved? Please

comment
_______________________________________________________________________
_______________________________________________________________________
_____________________________________________________
22)Which brand has better quality than Nestle Pure Life?

• Sufi
22) Are you
• satisfied
Kinley with the price of ½ litre Nestle Pure Life?
• Yes
• No
If 23)
no, What in your view point should be done to the price?
• Increased by a few paisas

• Increased by 1 Rupee
• Increased by 2-3 Rupees
• Increased by a greater amount
• Decreased by a few paisas
• Decreased by 1 Rupee
• Decreased by 2-3 Rupees
• Decreased by a greater amount
102
24)| PWhich
a g e brand do you think has more appropriate pricing than
Nestle Pure Life?
• Sufi
25) What improvements would you like to suggest for ½ litre Nestle Pure Life
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
_________
PERSONAL INFORMATION
Gender:
• Male
• Female
Age:
• Less than 20
• 21-25
• 26-30
• 31 and above
Residential Area
• Defence
• Gulberg
• Model Town
• Others__________ (please specify)
Family Income
• Less than 15000

• 26000-35000
103 | P a •g e 36,000 and above
RETAILOR QUESTIONNAIRE
We are students of Lahore School of Economics and are conducting a survey on

Nestle Pure Life. The results of the survey will be entirely used for academic
purpose. Your corporation will be appreciated.
Name: ___________________
Location of store: ___________________
What category of business are you in?
• Bakery
• Bookshop
• Medical Store
• Grocery
• Departmental Store
Since how long have you been in retail business?
o Less than 2 years

o 3 -5 years
o 6-8 years
o More than 9 years
How many brands of mineral water/bottled water do you carry?
• Pure Life
• Aquafina
• Sufi
• Springley
• Kinley
• Any other __________________________ please specify
Which is the most purchased brand of Bottled water?
o Nestle Pure Life

o Aqua fina
o Springly
o Sufi
o Any other ____________ (please specify)
104 | P a g e
For each of the attributes please select the trait preferred most by the customers.
NESTLE PURE AQUA SPRINGLEY SUFI ANY OTHER

LIFE FINA
(PLEASE
SPECIFY)
TASTE
PRICE
QUALITY
AFTER
TASTE
PURITY
OTHERS
(PLEASE
SPECIFY)
Who are the major customers of 0.5 litre Nestle pure Life?
o Teenagers
o Women
o Men
o Others ___________ (please specify)
Who are the major customers of 1.5 litre Nestle pure Life?
o Teenagers
o Women
o Men
o Others ___________ (please specify)
What is the consumer feed back you get regarding Nestle Pure Life?
• Excellent
• Good
• Normal
• Poor
Do you get regular supply of Nestle Pure Life?
o Yes
o No
How often do you get Nestle Pure Life supply?
105 | P a g e
o Daily
o Weekly
o Others _________ (please specify)
Do you get the profit margin on sales of Nestle Pure Life as?
o Per pack (200 ml or 1000 ml)

o Per carton
Do you have separate shelf space allocated specially for Nestle Pure Life?
o Yes
o No
Do you face the problem of running out of stocks of Nestle pure life?
o Yes
o No
Are you meeting the demand of your customers?
o Yes
o No
Are you willing to carry more stock of Nestle Pure life?
o Yes
o No
If yes, How much?
o 10% more
o 20% more
o Others _________ (please specify)
Which other brand is preferred by customers over Nestle Pure Life?
• Aquafina
• Sufi
• Springley
• Kinley
• None
106 | P a g e
Why do you think this brand is preferred?
• Better quality than Nestle Pure Life

• Better price than Nestle Pure Life
• Better taste than Nestle Pure Life
• Better bottling than Nestle Pure Life
• More variety in SKUs than Nestle Pure Life
Whom are you most comfortable dealing with?
• Nestle
• Aquafina
• Sufi
• Springley
• Kinley
What is the reason behind being comfortable while dealing with your selected
brand?
• Easy terms and conditions

• Timely payments
• Timely delivery of stocks
• Most demanded brand by people
• Most profit generating brand
What improvements would you like to suggest for Nestle Pure Life
_____________________________________________________________________
_____________________________________________________________________
__________________
What is your over all opinion about Nestle Pure Life?
o Very Good
o Good
o Average
o Bad
o Very Bad
107 | P a g e
REFERENCES
1. Source: Nisar Ahmad, Commercial Group Manager, Water division

2. Source: Mansoor Ahmad, ABM, Aqua fina
3. www.nestle.pk
4. http://www.nation.com.pk/daily/mar-2003/31/business/bn4.asp
5. http://www.pcrwr.gov.pk/wq04_annexure4.htm
6. Status of Various Brands of Mineral Water Marketed in Pakistan
7. www.pcrwr.gov.pk/Btl_wr_report/Bottled%20water%201999-2005.pdf –
8. http://www.nestle.com/Our_Brands/Bottled_Water/Overview/Bottled+Water.
htm
9. www.qarshiindustries.com/products/springley
108 | P a g e
109 | P a g e

Marketing Plan of Nestle Pure Life

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MARKETING PLAN OF NESTLE PURE LIFE

and perseverance to undertake and successfully complete the project.

indirectly and led us to the completion of the project.

NESTLE PURE LIFE

Nestlé Pure Life is established today in 21 countries across Asia, Middle-East,

Pakistan’s bottled water industry is a rapidly growing segment of the beverages

ASIA – THE FASTEST GROWING BOTTLED WATER MARKET

Table 1.1: Percentage of housing units by source of drinking water and

Source of Drinking Water All Areas Rural Urban

Inside Housing Unit 75.04 68.45 89.44

Outside Housing Unit 24.96 31.55 10.56

Total 100.0 100.0 100.0

Source: Population Census Organization, Statistics Division, Govt of Pakistan. '1998

BOTTLED WATER MARKET IN PAKISTAN

Bottled water in Pakistan is not considered a ‘beverage’. Beverage processing

In Pakistan’s water market, there are approximately 20 permanent players. Official

STRUCTURE OF PAKISTAN BOTTLED WATER INDUSTRY

PORTERS FIVE FORCES MODEL

Water is generally considered as a tasteless, odorless, colorless drink for quenching

• all bottled brands

• carbonated soft drinks

• Nestle has strict quality controls certified by PSQCA

• Established distribution channels of Competitors

MAIN PLAYERS IN INDUSTRY & COMPETITOR ANALYSIS

COMPETITORS WITH SAME PRODUCT

ANALYSIS OF COMPETITION FOR NESTLE PURE LIFE

Competitors with same Product

THE MINOR/ MAJOR COMPETITORS OF NESTLE PURE LIFE ARE:

o Haleeb is launching its water.

Qarshi Industries (Pvt.) Ltd. is one of the largest natural products

o Competitors with Substitute Product

NESTLE PURE LIFE

Available SKU’s of Pure Life:

Price: Rs. 15 for 0.5 liter Rs. 28 for 1.5 liters

Promotion: ATL and BTL

1) Promotion: Nestle is majorly focusing on their promotion side due to the

a) Consumer promotion: Nestle Pure Life considers consumer promotion to

(source: Nisar Ahmad, Commercial Group Manager, Water division)

Price: Rs. 15 for 0.5 liter Rs. 25 for 1.5 liters

Promotion: ATL and BTL

Product: Qarshi is offering Springley. Qarshi will be one of the major

Price: Rs. 13 for 0.5 liter Rs. 25 for 1.5 liters

Promotion: ATL and BTL

Product: Aquafina is mineral water. Aquafina uses polythene wrapper on bottles

Price: Rs. 15 for 0.5 liter Rs. 25 for 1.5 liters

Promotion: ATL and BTL

Product: Sufi bottled water

Price: Rs. 15 for 0.5 liter Rs. 25 for 1.5 liters

Promotion: ATL and BTL

SEGMENTATION OF MARKET FOR NESTLE PURE LIFE

 Segmentation for Water Bottles

o Segmentation for Bottled Water (, 0.5 Liters, 1.5 Liters)

NESTLE’S TARGET MARKET

Target market of all competitors: Same

(source: Nisar Ahmad, Commercial Group Manager, Water division)

Market share of all competitors:

(Soure: Mansoor Ahmad, ABM, Aqua fina)

o Segmentation for carton (12 liters, 19 liters)

ENVIRONMENTAL FACTORS AFFECTING THIS INDUSTRY

MAJOR CUSTOMERS OF THIS INDUSTRY

- Bulk water 19 liter

- Banks, institutions and companies