Marketing Mix of Nestle Pure Life

Bizning Vakil By Bizning Vakil, 28th Jun 2012 | Follow this author | RSS Feed | Short URL http://nut.bz/1scuhwks/
Posted in Wikinut>Business>Analysis

I have conducted an in-depth research on the Nestle Company’s four ‘P’s, analyzed them critically, and presented the findings. To maintain an easy flow, first, I give a rather brief overview of the company followed by the explanation of the company’s four Ps. Then, I present my critique of each P, my suggestions, and the possible outcomes if my suggestions are implemented. Thereupon, I give the conclusion I have drawn from my conduction of the research.

Company overview

Nestle is a multinational packaged food company founded and headquartered in Switzerland. It produces a vast range of brands, being an undisputed leader in the food sector. Nestle Water, the primary focus of this report, became a leading global player on the bottled water market after the acquisition of the Source Perrier SA Group in 1992. In 1998, after taking over Italy’s leading bottled water producer Sanpellegrino, Nestle launched the first multi-site bottled water known as Nestle Pure Life. Starting in 2000, Nestle Water advanced and spread into East, entering Middle East, Central and Far Asia, moving towards Africa. In Uzbekistan, Nestle Water launched Nestle Pure Life in 2001 and since then has strengthened its presence in the area.

Uzbekistan Nestle Pure Life is headquartered in Tashkent, the capital city, with the production cite in Namangan. It uses Deep Well water sources famous for its cleanliness. The company not only aims to keep the leading local market share, but also commits further, with WATER as a guideline.

W – Work to continue reducing the amount of water used for production.
A – Assure the public of the company’s respect for local water resources.
T – Take care of the harmlessness of the discharged water to the environment.
E – Engage with agricultural suppliers to promote water conservation.
R – Reach out to others, in particular women and children, to collaborate on water conservation and access.

Company’s marketing mix

The marketing mix of Nestle Pure Life is best analyzed through the four ‘P’s. These four Ps are Product, Price, Place, and Promotion. In the following sections, each of the marketing mix will be discussed.

Product

Nestle Water developed a good product mix, which covered wider areas of drinking market. Beginning in 2003, Nestle Water made bottled water in Sparkling and Flavored forms. Both brought huge success the market embraced them with positive appetite. Over the years, however, the company observed that its products in Flavored Form was slipping away from the high demand while bottled water in Still form was becoming more desirable. The company responded to the changes in the consumer tastes by stopping the production of flavored water and introducing the Still water at greater volume.

Price

The company uses many pricing strategies. The cost of production, which stands at the base of all pricing strategy, is well reflected in Nestle Pure Life price. Its rather higher price relative to other bottled waters can be explained using the Pricing Strategies Matrix. Since the quality of Nestle Pure Life is very high both from the Company’s and the consumers’ perspective, the high price justifies itself.

Promotion

The Company recognizes the importance of continuous presence in promotion activities. Consequently, Nestle Pure Life is well promoted in major cities of Uzbekistan. Currently, the company is actively involved in sponsorship of educational and sports activities. In particular, the company sponsors Youth Pakhtakor, a young football team, and the friendly meetings or competitions of that team. Furthermore, outdoor posters and banners, references in movies and articles have made tens of thousands of people subconsciously aware of Nestle Pure Life (and other Nestle products).

Place

With a headquarter in Tashkent and a production cite in Namangan, Nestle Pure Life is present in all twelve regions of Uzbekistan.

My suggestions

Product: Observe an ordinary consumer making a choice of bottled water among many brands. It is more likely that the consumer picks Nestle Pure Life, provided the observation takes place in one of the major cities. The possible explanation for the consumer’s behavior is quality of the product, its perfect design and appearance – image, and the high level of satisfaction it gives the consumer. Nonetheless, despite these highly positive explanations, one tiny suggestion could make the product even more appealing to the wider public. The plastic that covers the opening of the bottles, despite giving strong impression of professionalism, is rather difficult to remove. The level of difficulty depends on the length of the consumers’ fingernails. Although this would be a tiny reconstruction, it would, from a psychological perspective, lead to even higher satisfaction, which in turn would lead to long lasting customer loyalty.

Price: The price charged is relatively higher than those of similar products. It never caused any competitive disadvantage to the company in major cities due to the quality and other, already discussed, reasons. However, the price must be disproportionately allocated to different cities of Uzbekistan. A 400 UZS in Tashkent is likely to sound like 800 UZS in suburban areas of Uzbekistan.

Promotion: The Company does excellently in the promotion area when the objective is to boost the sales. However, if the company sponsor or organize educational programs or TV/radio shows teaching about the importance of water and hydration in human health, it would have made turning changes in people tastes and preferences. As people become more aware of hydration issues, they will demand more of water. That, people demand more water, however, does not promise higher sales for Nestle Pure Life, though higher sales is possible.

Place: Nestle Pure Life is not present in all areas of Uzbekistan. In suburban areas, Sibur is more active (Euromoniter International, 2009). Nestle Pure Life could further develop its current system of distribution by increasing its own vehicles, a successful strategy already tested and worked by Coca-Cola Uzbekistan (Euromoniter International, 2009).

Conclusion

I have prepared this report to show my critical analyses of marketing mix of Nestle Pure Life. The company’s stand is already highly successful. Yet, market is not stable and demand is very sensitive to its every determinant. With this in view, I discussed the four ‘P’s of Nestle Pure Life and made my suggestions. It is possible, more than probable, that Nestle Water could benefit highly with the implementation of my suggestions.

Bibliography

AdBrands, (2009), Nestle SA: profile, Available at: <http://www.adbrands.net/index/Nestle.html>
Euromonitor International, (2009), Soft Drinks in Uzbekistan, Available at: <http://www.euromonitor.com/Uzbekistan>
MarketingTeacher, (2009), Pricing Strategies, Available at: <http://www.marketingteacher.com/Lessons/Pricing_Strategies.html>
Nestle official webpage: www.nestle.com

Tags

4 Ps, Marketing Mix, Nestle Pure Life

Meet the author

author avatar Bizning Vakil
An economist by definition, a teacher by practice, a journalist by nature, I find it hard to find any one permanent place to settle down...

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Comments

author avatar MyShoh
14th Jul 2012 (#)

a detailed work, excelent

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author avatar Manpreet
15th Mar 2013 (#)

this is relevent but too short

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author avatar Manpreet
15th Mar 2013 (#)

this is good data but too short so explain more.

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