ACKNOWLEDGEMENTS

In the Name of Allah The Most Beneficent, The most Merciful

Firstly we would like to thank Allah Almighty for giving us time, opportunity and the energy for

the completion of this project within the prescribed time.

We are highly obliged to Mr. Adeel Anwar for his kind guidance throughout the course .His

assistance and moral support has helped us in understanding the concepts of Brand Management

and has instilled in us fervor, enthusiasm and vigor.

We extend our gratitude to all the people who have been a source of direct or indirect help

especially Mr. Saad Arshad, Key Accounts Manager and Mr. Sajid Rizvi, Sales Admin

Executive at Nestlé for their immense amount of patience, time and support in the course of the

project.

We are highly grateful to all those individuals who cooperated with us and took out time from

their busy schedules to fill in our questionnaires.

Last but not the least we are thankful to our families and friends who supported us even at odd

timings to complete our research.

BRAND MANAGEMENT

BRAND AUDIT REPORT

Submitted to

Mr. Adeel Anwar

Submitted by

Rushda Khan (05-0366)

Anam Mahmood (07-0413)

Muhammad Ali Hanif (06-0350)

Nouman Ali (08-0318)

Hassan Tariq (07-0379)

ACKNOWLEDGEMENTS

In the Name of Allah The Most Beneficent, The most Merciful

Firstly we would like to thank Allah Almighty for giving us time, opportunity and the energy for the

completion of this project within the prescribed time.

We are highly obliged to Mr. Adeel Anwar for his kind guidance throughout the course .His assistance

and moral support has helped us in understanding the concepts of Brand Management and has instilled in

us fervor, enthusiasm and vigor.

We extend our gratitude to all the people who have been a source of direct or indirect help especially Mr.

Saad Arshad, Key Accounts Manager and Mr. Sajid Rizvi, Sales Admin Executive at Nestlé for their

immense amount of patience, time and support in the course of the project.

We are highly grateful to all those individuals who cooperated with us and took out time from their busy

schedules to fill in our questionnaires.

Last but not the least we are thankful to our families and friends who supported us even at odd timings to

complete our research.

CONTENTS

Executive Summary 02

History of Nestlé 03

Brand Hierarchy 05

History of Nestlé MilkPak 06

Boston Consulting Group Matrix 07

Competition

Competitive Positioning Matrix 08 Competitive Profile Matrix 09

Nestlé MilkPak’s Micro Environment

Porter’s Five Forces Model 10

Market Situation Analysis 12

Brand Inventory

Brand Identity 14 Brand Positioning 16 Marketing Mix 19 Brand Elements 25 Branding Decision Making Process 27

Brand Exploratory

Customer Based Brand Equity Pyramid 31

Recommendations 34

Bibliography 36

Appendix

ILLUSTRATIONS

Figure-1

Situation of the Market of “Milk” users 12

Figure-2

Market Share of Packaged Milk Brands 17

Figure-3

SKUs of Nestlé MilkPak 19

Figure-4

Product Life Cycle of Nestlé MilkPak 20

EXECUTIVE SUMMARY

This report is the Brand Audit of the Famous Brand of Nestlé that is Nestlé MilkPak. This report

highlights the major branding concepts of Nestlé MilkPak, it introduces the product and its brand

elements and moves onto explaining more concrete concepts further into the report. It contains a

detailed analysis of the Brand Inventory and then checks the match of that with the Brand

Exploratory through which it explains any mismatch between the two or if the brand has been

able to translate its core values to the consumers. Along with the entire analysis of the core

concepts and the surveys, the reports ends with certain valuable recommendations which can be

implemented by the brand to realize it’s very potential.

We have attached a softcopy of the report form the coding sheet of our questionnaire results in

the form of a CD.

HISTORY OF NESTLÉ

1866-19751

In the 1860s Henri Nestlé, a pharmacist, developed a food for babies who were unable to

breastfeed. His first success was a premature infant who could not tolerate his mother's milk or

any of the usual substitutes. In 1905 Nestlé merged with the Anglo-Swiss Condensed Milk

Company. By the early 1900s, the company was operating factories in the United States, Britain,

Germany and Spain. The 1920s saw Nestlé's first expansion into new products, with chocolate

the Company's second most important activity

The end of World War II was the beginning of a dynamic phase for Nestlé. Growth accelerated

and companies were acquired. In 1947 came the merger with Maggi seasonings and soups.

Crosse & Blackwell followed in 1960, as did Findus (1963), Libby's (1971) and Stouffer's

(1973). Diversification came with a shareholding in L'Oréal in 1974.

1975-2002

Nestlé made its second venture outside the food industry by acquiring Alcon Laboratories

Inc..Nestlé divested a number of businesses1980 / 1984. In 1984, Nestlé's improved bottom line

allowed the Company to launch a new round of acquisitions, the most important being American

food giant Carnation.There were two major acquisitions in North America, both in 2002 in July,

Nestlé merged its U.S. ice cream business into Dreyer's, and in August an acquisition was

announced of Chef America, Inc.

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

2003 Till Date

The year 2003 started well with the acquisition of Mövenpick Ice Cream, enhancing Nestlé's

position as one of the world market leaders in this product category.  In 2006, Jenny Craig and

Uncle Toby's were added to the Nestlé portfolio and 2007 saw Novartis Medical Nutrition,

Gerber and Henniez join the Company. 

Mission

Nestlé is dedicated to provide the best foods to people throughout their days, throughout their

lives, throughout the world. With their unique experience of anticipating consumers’ needs and

creating solutions, Nestlé contributes to the well being of consumers and contributes to their

lives.

Vision

Vision of Nestlé MilkPak Pakistan is to expand business according to the increasing demand of

market. As per Nestlé’s vision in 2020 production capacity of all plants working in Pakistan is

being increased. The company has already started extension of its Kabirwala Plant to operate on

an even larger scale.

Corporate Culture

The corporate culture at Nestlé is very open and informal. Employees are welcoming and

gracious towards each other but also quite competitive when it comes to work. Whenever there is

a job opening, 8-10 people are lined up for the position from within the company. Disputes or

conflicts within firm are solved with the cooperation of top level management. In case of a

conflict, it is resolved by going up the ladder and the persons involved can even go abroad to

resolve the conflict if it takes that. Employees accept changes in technology easily. They are

flexible and work long hours when needed.

BRAND HIERARCHY

HISTORY OF NESTLÉ MILKPAK

Nestlé entered Pakistan in 1984, when the parent company, the Switzerland-based Nestlé SA,

first acquired a share in MilkPak Ltd. MilkPak is a standardized UHT milk that benefits from

Nestle’s expertise in bringing you the very best in health, wellness and nutrition.

MilkPak is a trusted brand known throughout the country for its nutritious wholesome goodness

and pure natural taste. To secure a happier and healthier future for your family, you need the

support of a strong partner like MilkPak, now fortified with extra strength of Iron, Vitamin C and

Vitamin A that helps keep you and your family strong.

Iron as an essential mineral helps in the formation of healthy blood and strengthens your immune

system. Vitamin C helps the absorption of Iron in the body and Vitamin A is important for clear

vision.

BOSTON CONSULTING GROUP MATRIX

Nestle Milkpak is a Cash cow. It has high market share and low market growth. Thus it’s

milking all the cash and profits out of its existing customers but the rate at which it’s sales are

growing is declining.

COMPETITION

Competitive Positioning Matrix

Nestle is definitely leading the market. Its investments in R & D are huge and it’s at the forefront

of all major innovations in the packaged milk industry. This makes its product innovations quite

high. As for market entry, we all know Nestle Milkpak is a pioneer product in the packaged milk

market. Market entry in the packaged milk industry is usually low.

Competitive Profile Matrix

Competitive profile matrix is an essential strategic management tool to compare the firm with the

major players of the industry. Competitive profile matrix shows the clear picture to the firm

about their strong points and weak points relative to their competitors. The competitive profile

matrix for the packaged milk is as follows ( Milk pak, Haleeb and Olper’s are used)

MilkPak Haleeb Olper’s

Critical

Success

factors

weight Rating Weighted

score

Rating Weighted

score

Rating Weighted

score

Advertising

Product quality

Competitiveness

Financial

position

Customer

Loyalty

Market share

Price

0.2

0.1

0.1

0.1

0.2

0.2

0.1

4

3

3

4

3

4

2

0.8

0.3

0.3

0.4

0.6

0.8

0.2

2

2

1

2

1

1

2

0.4

0.2

0.1

0.2

0.2

0.2

0.2

4

4

3

3

4

2

2

0.8

0.4

0.3

0.3

0.8

0.4

0.2

Total 1.00 3.4 1.5 3.2

The results clearly show that Milkpak is ranked the highest according to the matrix, Olper’s

second highest and Haleeb the lowest. It is also important to note that difference between

weighted averages of Olper’s and Milkpak is quite low (0.2). This is an indicator for Nestle

milkpak that it’s in for fierce completion with Olper’s. Olper’s is one of the biggest emerging

threats for Nestlé.

NESTLÉ MILKPAK’S MICRO ENVIRONMENT

Porter’s Five Forces Model

Competition

Nestlé faces tough competition when it comes to the “Packaged Milk” market. Its major

competitors include Olper’s having the second largest share in the market, followed by Haleeb

and GoodMilk. These competitors though few but constantly force MilkPak to continue

differentiating for it retain its customer base and strive for acquisition of more Customers.

Threat of New Entrants

The threat of new entrants is high primarily because the entry barriers to this industry are very

low due to low infrastructure costs Another factor that increases the threat of new entrants is that

“Tetra Pak” also sells machinery for the industry enabling others to be customers of Tetra Pak,

they have trained sales force comprising of engineers that are on the lookout of potential

investors. Now this factor adds to the chances of more people joining in. Though being the

market leader with 60% market share, these new entrants always continue to pose a threat to the

Brand.

Buyer Power

Being a commodity brand, the buyer power is quite high as the chance of switching by the

customers is high. The brand has to continuously strived to maintain its share in the market as

there are many substitutes available in the market like Olper’s ,Haleeb ,GoodMilk and other

brands of Packaged milk.

Supplier Power

Since MilkPak does bulk buying so it purchases major chunks by its suppliers like TetraPak.

They cannot afford to lose such a significant portion of their sales. This reason makes the

supplier power significantly lower.

Substitutes

MilkPak has many substitutes available in the market, which include packaged milk brands

namely, Olper’s ,Haleeb, GoodMilk, Nirala etc. These milk brands give MilkPak a tough

competition hence making the brand continuously devise strategies to continue differentiating.

MARKET SITUATION ANALYSIS

Figure-1 Situation of the Market of “Milk” users

The market of “Milk” users consists of 2% of “Packaged” milk Users and 98% of the “Non Packaged

Milk” users which identifies a potential of 98% as that is the “Untapped market”. The 2% market share is

the one for which all the Packaged Milk brands are competing, with an unexplored potential equivalent to

98%. The Packaged Milk brands which cater to the 2% of the market of Packaged milk users include

Nestlé MilkPak established as the “Market Leader” followed by Olper’s , Good Milk and Haleeb. There

are other brands like Prema and Nurpur that also come under the “Packaged Milk” category

BRAND

INVENTORY2

BRAND IDENTITY

“NHW” Concept

The brand translates and works around the NHW concept for the marketing and positioning of its

product. The concept translates three values that are of Nutrition Health and Wellness through its

product and advertisement campaigns. These are the core values that brand promises to deliver to

its consumers and want them to indentify these values with the brand. Every advertising

2 The purpose of the brand inventory is to provide a complete, up-to-date profile of how all the products and

services sold by a company are marketed and branded

campaign that Nestlé launches translates the same values of the brand. This process takes place

every six to eight months.

In doing so the brand has a tool that it uses to test every change that they plan to implement in

the product. Since the NHW concept is the core concept of developing the Brand Identity and

creating a certain perception of their product, the following concept is applied

60/40+ Concept- Making It Happen

The 60/40+ concept is an expression of the Nestlé vision of Nutrition, Health and Wellness.

Increasingly consumers are looking to food to provide nutritional and health benefits - not at the

expense of taste but in addition to it.Nestlé aims to make MilkPak achieve at least 60% consumer

taste preference with the added 'plus' of nutritional advantage. This means that in rigorous market

testing 6 out of 10 consumers prefer Nestlé MilkPak to a competitor's equivalent. It also means

that they are always thoroughly in search for ways to add that nutritional 'plus'.

Key to this process is the nutritional assessment of Nestlé MilkPak. Nutritional assessment is

carried out by R&D nutritionists and generally compares Nestlé MilkPak with the main

competitor product. The nutritional assessment examines the levels of nutrients and the value of

key ingredients in our products. The assessment identifies nutritional strengths and weaknesses,

and provides direction for product improvement leading to nutritional superiority.

Ultimately, the consumer is the winner with a tested process in place to continually improve the

nutritional value of foods they prefer. 60/40+ drives innovation and renovation of Nestlé

MilkPak with the consumer at the center.

\

BRAND POSITIONING

Brand Positioning (as defined by Kotler) is “ an act of designing the company’s offer and image

so that it occupies a distinct and valued position in the target customer’s mind”. It cannot be fully

explained until we define the following four factors

Target market

Nature of competition

Points of parity

Points of difference

Target Market

Demographically, the target market for Nestlé MilkPak is based on gender and occupation. As

it’s packaged milk and the grocery is usually done by housewives therefore the products target

market is that of housewives, as they are the key decision makers. The income group targeted by

Nestlé MilkPak is that of SEC A and B, that include, middle-middle, upper- middle and upper-

upper/ elite classes. The income of these classes starts from Rs.40000/- on a per month basis.

Since they build their marketing campaigns on the Nutrition Health and Wellness Concept

therefore psychographic ally they have targeted people who aim at healthy lifestyles and are

Quality conscious.

Nature of Competition

Nestlé faces tough competition when it comes to the “Packaged Milk” market. Its major

competitors include Olper’s having the second largest share in the market, followed by Haleeb

and GoodMilk. These competitors though few but constantly force MilkPak to continue

differentiating for it to retain its customer base and strive for acquisition of more customers.

The following pie chart shows the market share for each packaged milk brand.

Figure-2 Source Mr. Saad Arshad (Key Accounts Manager Nestlé)

Points of Parity

All the packaged milk brands offer the basic commodity; milk. At the product level Olper’s,

Nestlé, Haleeb, Goodmilk etc have the function of fulfilling the nutritional needs of their clients

and also they are used in making several desi beverages (tea, lassi, milkshakes,) .Therefore these

following factors fulfill the basic needs of the consumers equally creating a point of parity

amongst all.

Points of Difference

Since all the packaged milk brands are similar at the basic or core product level therefore Nestlé

MilkPak has differentiated itself from its competitors on the basis of adding nutritional value for

its customers. Like the addition of “Vitamin A, C and Iron “only in Nestlé MilkPak which are

non existent in any of the other milk Brands. These points of difference which make Nestlé

MilkPak extend its PLC and continue to outperform and maintain its market lead.

Marketing Mix

Product

The product exists in the following SKUs

1000ml

500ml

250ml

________________________________________________________

Figure-3 SKUs of Nestlé MilkPak

Product Life Cycle

Product life cycle is the course of a products sales and profits over its life time. It involves four

distinct stages.

Introduction

Growth

Maturity

Decline

Nestlé MilkPak was first launched in 1984 in Pakistan. At that time MilkPak was the first

packaged milk brand that was sold in tetra pack packaging. From 1984 to 2005 MilkPak

performed very well in the Pakistani market and hence became the market leader in the packaged

milk category. In this period it also captured a lot of share of its rival’s i.e, Haleeb. After this

immense growth MilkPak as a brand reached its maturity stage in 2007, this was taken seriously

by the company and hence they changed some composition of the milk by adding iron and

vitamin A, C in it to prevent a decline of the brand. Now the Brand though is growing but at a

decreasing rate.

___________________________________________________________________________

Figure-4 Product Life Cycle of Nestlé MilkPak

Price

Competitive Pricing

MilkPak is charging very reasonable prices as the profit margins are not high in this industry

and is delivering high quality at competitive prices in order to maintain its market share.

SKUs PRICE3

1000ml Rs. 62

500ml Rs.34

250ml Rs.17

Placement

The product is available readily at all shops of any magnitude and location. Everyone has access

to Nestlé MilkPak and there is never an issue of availability to any consumer. Nestlé MilkPak is

practically available at all stores listed as under. They include

Mom and Pop Stores

Mom and Pop stores are “Karyana” shops located in local vicinities catering to the local needs of

smaller areas. They are generally run on a very small scale

Convenience Stores

All the convenience stores built with gas stations operative round the clock provide Nestlé

MilkPak and hence many people can reach the product 24/7. Hence creating no availability

issues at any time during the day.

Khokhas and Panshops

Nestlé MilkPak is even available at local panshops and khokhas on the street corners and made

on a very small scale.

Departmental Stores

3 As per 23 April 2010

Departmental stores like Al-Fatah, HKB, Jalal Sons, Potpourri etc are also another access to

Nestlé MilkPak.

Hypermarket

Hypermarkets like Metro Cash and Carry and Makro are also location where Nestlé MilkPak is

available for bulk buying.

Channel Strategy

The various channels involved in their Supply Chain are, Wholesalers, Retailers and Customers

and Nestlé’s Suppliers that include Tetra Pak and Milk Supplying agents.

The Distribution channel appears as the following and involves the following middle parties;

\

Promotion

Nestlé MilkPak marketing communication is all about focusing on health conscious people. For

this purpose, Nestlé has employed both above the line and below the line promotion.

Above the Line Promotion

It stands for Promotion in the media (e.g. TV, radio, newspapers, Internet, Mobile Phones,

and, historically, illustrated songs) in which the advertiser pays an advertising agency to

place the ad.

1. Advertisements

40 % of Nestlés’ advertisements are focused on conversion of milk users to packaged milk

and 60 % is to specifically target towards MilkPak usage communication mix.

2. Television

Every new ad campaign for MilkPak goes through a prelaunch research stage which is

approximately six months long and involves consideration of 250 variables. MilkPak Ad’s

reflect its NHW concept. They usually show a happy, healthy family. Some Ads (such as the

one for the addition of iron) exhibit the functional qualities of MilkPak .

MilkPak follows an aggressive marketing campaign on TV in Ramadan and other special

times of the year e.g. Eid.

3. Print Media

Almost 5% of the entire advertising budget is spent on print media. MilkPak Ads are placed

on the finest newspapers of Pakistan; newspapers such as Jang, The news & Dawn often

have its Ads on their first page. Along with that Nestlé Milk is also advertised in Sunday

and kids magazines.

4. Internet

Nestlé MilkPak has a well designed website which gives thorough information about

MilkPak. Also there is an increasing emphasis on blogging on internet forums. This

stimulates consumers interactivity with the brand.

Below the Line

Below the line promotion can be divided into in store and in house promotion.

1. In store

In store promotion refers to point of purchase advertising. It Includes gondolas, merchandise

space and posters.

2. In house

It includes interactive sessions carried out in peripheral areas. The aim of In house

promotion is to increase awareness about MilkPak in such areas.

BRAND ELEMENTS

Brand Name

Nestlé MilkPak is a memorable, meaningful & measurable name. Our survey suggests it is liked

by most of its consumers.

Logos and Symbol

New Logo Old Logo

In the old logo The brand name Nestlé is written quite bigger than the sub brand Milk Pak. The

reason for this is that at that time MilkPak itself hadn’t established it’s foothold in market as a

distince brand.

However as MilkPak’s awareness increased the tag of Nestlé was reduced and gone in

background and Milk Pak became more prominent. Moreover “the flower” as a dot of “I” was

replaced by a simple “I” which made it more attractive and unique.

Slogans

Bharosa

It arouses a sensation of trust, sincerity, integrity and credibility among the target market.

Banaye Mazboot Gharana

This slogan is targeting typical housewives who cares for her children and spouse.

BRANDING DECISION MAKING PROCESS

Nestlé is one of the most renowned brands worldwide. Its brand equity is worth billions.

Therefore, making any branding decision requires great precision and consideration. A

problem/opportunity is first reported to the branding department of Nestlé. Following are some

of the key stages that than take place

Market Research

This is a preliminary stage in which all facts and information about the problem at hand are

uncovered. All the information relevant to the task is collected through extensive research. Both

internal and external market research is used

Internal Market Research

Internal market research involves the efforts made within the company in conducting

research. This involves the branding and marketing department of Nestlé.

External Market Research

In some cases Nestlé may need to commission an external research company, as

resources may need to be supplemented or additional skills are needed to understand

the findings of the research. For this purpose it outsources its research to a credible

company.

Findings Shared With Executives

At this stage all the findings from the first stage are reported to the people at the top of the

hierarchy. Their consultation and eventually their approval is imperative before going on any

further into the branding process. The essence of the entire branding process is

“Let’s explore and capitalize on opportunity”

Motivation to carry on with this essence is provided at this stage of the process. The Managing

director (MD) approves the findings and allows the branding department to further continue with

the task. Without MD’s approval the issue is either dropped or more research is done and

findings are reported again.

Validate Research

The research is further validated by making use of market research techniques such as

Focus groups Three to five people group are made focus of the research

Consumer panel A group of consumers are made a part of the research and asked

multiple questions about the problem at hand from time to time.

Again, external and internal sources are used to validate the research. Verification of the research

is crucial so that all errors and possible bottle necks are identified and removed.

Advertising Agency

An Ad agency is than employed. Their skills and expertise have helped Nestlé immensely in

gaining the market power that it today has. The Ad agency currently employed by Nestlé is

“Lowe & Rauf”. Along with branding department within Nestlé and with the help of Ad agency

different creative directions are discussed.

Funnel Ideas

At this stage all the brainstorming is done and the best of all ideas are finalized. The rest filtered.

This is done with the cooperation of Ad agency.

Approval of Idea

Of all the ideas finalized, the best one is picked. This idea is sent for approval in the upper

hierarchy and the progress then takes place

Budgeting and Finance

As the name suggests, this stage involves all the numbers involved with the execution of the

finalized idea. All the costs, profitability and Performa statements are drawn to check the

viability of the idea.

Implementation

After the budgeting has been done the idea is ready to be implemented. Execution of the idea

takes at this stage.

BRAND

EXPLORATORY4

CUSTOMER BASED BRAND EQUITY PYRAMID

4 The brand exploratory is research activity designed to identify potential sources of brand equity.The brand exploratory provides detailed information as to what consumers think of and feel about the brand.

Brand Salience5

Nestlé MilkPak has has a high depth and breadth of awareness, therefore making it a highly

salient brand. When the consumers were asked to recall the brands of packaged milk m 72% of

the consumers were able to recall it first. This clearly shows that the brand has a high level of

awareness and recall in the consumers identifying the product, its logo and other elements

quickly.

Brand Performance

At the basic ingredients level, Nestlé MilkPak is highly satisfying for the consumers as it is

ssatisfying in terms of Taste , Quality and purity. The consumers are seen to associate these

attributes with the brand as compared to other packaged milk brands. Even the brand was most

preffered amongst the family, colleagues and friends of the respondents. However the consumers

seemed disatified by the packaging and advertisments of Nestlé MilkPak as opposed to other

brands. They believed that Olper’s had a better tagline and Logo.

5 The data to substantiate these facts is given in the appendix

Imagery

Nestlé MilkPak has been positioned in the minds of the consumers that they call their target

market and that includes primarily housewives. These housewives are who are the ones who

make the actual purchase decisions while shopping for grocery. Its advertisements depict the

lifestyle of a typical housewife who takes care of her family and thus provides comfort. Nestlé

MilkPak is a brand that brings comfort and satifaction in terms of quality and purity as opposed

to other Packaged Milk brands.

Judgements

Nestlé MilkPak has maintained a high quality image due to its performance and strong image of

the parent company. This fact has been backed up by our survey as people associate the brand

with high quality and purity. It differentiates itself from other packaged milk brands by its

addition of Vitamin A, C and Iron; because of this feature it makes the brand superior to other

brands. Nestlé MilkPak has high credibility Nestlé is an innovative, trustworthy and likable

company because it invests in R&D on a regular basis, regularly conducts marketing research to

keep consumers view in mind and always gives consumers good value for money.

Feelings

The brand building feelings associated with Nestlé MilkPak according to the company are Trust

and Satisfaction. The brand makes the consumers enlightened and energized and it makes them

feel that they are experiencing something new and special. A number of ads depict the same

feeling of trust and satisfaction as clearly evident from their new ad campaign “Bharosa” .

People have very positive feelings about the brand name and the values it communicates to the

people in general. As per our survey 92% of the feelings were associated with Nestlé MilkPak.

Resonance

The brand loyalty of Nestlé MilkPak is very strong even though it’s an FMCG but people in our

survey seemed to be extremely loyal to the brand. They believed that if MilkPak was not

available they would search for it as they believed it gave them the best value for their money.

Also the taste and purity the brand offered was unmatched to other packaged milk brands.

Though there are other packaged milk brands available in the market but brand switiching was

not a very regular phenomenon noticed. People who used Nestlé MilkPak continued to use it

since years.

RECOMMENDATIONS

After having completed our research, based on our findings and our comparison to the progress

factors of Olper’s we recommend the following courses of action for Nestle MilkPak

Redefinition and Broadening of Target Market

Nestle should aim at broadening its target market from only housewives to females be it

housewives, working women or young females. Attracting a larger audience through their

advertisement campaigns would enable Nestle to capture a wider base of customers.

Since lifestyles are changing and more and more women are becoming a part of the

workforce, therefore they fail to identify with and connect to a housewife. Hence the

message of the brand to consumer is lost due to that loss in connectivity.

Increase In Frequency of Advertisements

Milk Pak should aim at increasing the frequency of their advertisements aired on

television, radio and newspapers. The more the advertisements the more the customers

are able to recall the brand as compared to its competitors.

Frequent Change of Advertisement Campaigns

Nestle should like Olper’s rapidly change its ad campaigns. Olper’s has different ad

campaigns for different occasions like Ramazan etc where it is able to capture the

attention of many new consumers by its creativity. Nestle should follow the same strategy

to enhance and build a creative edge.

Aggressive In House and In Store Advertising

Nestle should do aggressive In House and In Store Advertising. In House advertising is

when Nestle reaches to various areas and introduces its product to a group of people

consequently creating awareness and encouraging people to purchase it .These tactics

will grasp the attention of many potential consumers towards their products. This will not

only help to regain the lost market share but to further increase the market share.

Celebrity Endorsements

Nestle should not rely too heavily on its brand image rather it should use Brand

Ambassadors like different celebrities to endorse the Brand like Olper’s does for example

its latest commercial includes four of the morning show hosts namely , Nadia Khan, Dr

Sana Tariq, Ayesha Alam and Ayesha Sana. Celebrities always have a lasting impact on

the consumers’ minds and help increase brand awareness and Brand recall.

Revamp Packaging/ Make Packaging More Attractive

Packaging should be revamped, as a major reason seen for brand switching is the

attractive packaging done by Olper’s. Since the packaged Milk Brands share the same

shelf spaces in Retail stores it is extremely important to have a matched packaging.

Olper’s stands out on the shelf as opposed to any other “Packaged Milk” Brand. Even in

our research when we asked people to associate a color with “Packaged Milk” majority

recalled the color “Red”.

BIBLIOGRAPHY

Mr. Saad Arshad, Key Accounts Manager. Nestle

Mr. Sajid Rizvi, Sales Admin Executive, Nestle

Nestlé’s history, Retrieved April 19’2010 from http://www.nestle.com

Nestlé’s Logos and Symbols, Retrieved April 22’2010

http://portal.tugraz.at/portal/page/portal/Files/i3210/Projekte%20und%20Industrie/

logo_Nestle.jpg

Nestle Company Information, Retrieved April 13’ 2010

http://www.nestle.co.jp/japan/e/global/brands.asp

Nutrition Health and Wellness, Retrieved April 14’2010

http://www.nestle.co.jp/japan/e/global/well-being.asp

APPENDIX

Location: __________ Date: ______________

QUESTIONNAIRE

We are students of Management Sciences’ Department at FAST- National University of Computer and Emerging Sciences and doing a course project on the Brand Audit of Packaged Milk Your information provided will be very helpful for us in analyzing and completing our project. We ensure you that the information you provide will be kept confidential and will be used for the research purpose only.

Thank you for taking out time for this survey.

) When you recall “Packaged Milk” which brands come to your mind (Kindly mention in the order they come to your mind)?

a) _____________________

b) _____________________

c) _____________________

2)When you recall “Packaged Milk” What color comes to your Mind?

________________

3) Have you ever used “Packaged Milk”?

a) Yes (1)

b) No (2)

If “No” Kindly End the Questionnaire

4) Which packaged milk brand is more used in your circle of friends/family and colleagues?

a) Nestle (1)

b) Olper’s (2)

c) Haleeb (3)

d) Good Milk (4)

e) Others: Please Specify______________ (5)

5) Have you ever used Nestle MilkPak?

a) Yes (1)

b) No (2)

5) Rate the following packaged milk brands on the following characteristics using the scale below

Strongly Disagree ---------------Strongly Agree

1-------------------------------5

Note: Numbers can be repeated and give answers in whole numbers.

 Nestle

Milkpak Olpers HaleebGood milk

Is a well known brandHas high Nutritional Value (vitamins etc.)        

Is good for health        

Has high Quality

Tastes good        Is more pure and natural (Uses less artificial ingredients)Has attractive packagingIs economically priced        

Is easily available        Has effective advertisements        

6) Kindly rank the following factors according to their importance while selecting “Nestle’Milk Pak”.

a) Brand name (1)

b) Nutrition (2)

c) Health (3)

d) Taste (4)

e) Price (5)

f) Availability (6)

g) Advertisements (7)

7) To what extent does Nestle Milkpak have special features compared to other brands (e.g. Iron, brand image, nutrition, health and taste)?

a) To a great extent (1)

b) To some extent (2)

c) Neutral (3)

d) Not much (4)

e) Not at all (5)

8) To what extent do you feel you grew up with Nestle MilkPak?

a) To a great extent (1)

b) To some extent (2)

c) Neutral (3)

d) Not much (4)

e) Not at all (5)

9) What is your perception about Nestle MilkPak’s advertisements (as in what do they exhibit)?

a) Healthy lifestyle (Nutrition, Health) (1)

b) Culture (family orientation) (2)

c) Reliability (trustworthiness) (3)

d) All of the above (4)

10) Which of the following feelings does Nestle MilkPak generate?

a) Care (1)

b) Warmth (2)

c) Social Status (3)

d) Satisfaction (4)

e) None of the above (5)

11) What is your overall opinion of Nestle MilkPak?

a) Excellent (1)

b) Good (2)

c) Neutral (3)

d) Bad (4)

e) Worst (5)

12) How likely would you be recommending Nestle MilkPak to others?

a) Most likely (1)

b) More likely (2)

c) Neutral (3)

d) Less likely (4)

e) Not at all (5)

13) Which brand element of Nestle MilkPak attracts you the most?

a) Color (1)

b) Logo (2)

c) Symbol (3)

d) Slogan (4)

e) Jingle (5)

f) Name (6)

14) Rate the logo and tagline of each brand according to your liking?

Don’t Like it ------------Like it

1-----------------------5

BRAND LOGOS/TAGLINES 1 2 3 4 5

“Subah Bakhair Zindagi”

“Banayey Mazboot Gharana”

“Sub say Garha Doodh”

Help People Live healthier Lives

15) If Nestle MilkPak was a person what gender would it be?

a) Male (1)b) Female (2)

16) If Nestle Milkpak was a person what age bracket would he/she fall in?a) 4-12 years (1)b) 13-21 years (2)c) 22-30 years (3)d) 31-39 years (4)e) 39 or above (5)

Q.17) If Nestle’ MilkPak were a person, what would its personality be like?

Q18) Which of the following statements do you feel about Nestle Milkpak?a) I consider myself loyal to Nestle’ Milkpak (1)b) I hang around with people who drink Nestle’ Milkpak (2)c) If I don’t find Nestle Milkpak I would not care much about it (3)d) Nestle Milkpak is extremely special to me (4)e) I would not recommend it to other people (5)

Q19) Do you have any suggestions or comments for Nestle Milkpak?

________________________________________

DEMOGRAPHICS

Your Age? _______________

What is your household Income? (Monthly income)

a).40,000-70,000 (1)

b).71, 000-101,000 (2)

c).101,000 or more (3)

SAMPLING METHODOLOGY

Sample Size

Our sample size was a total of 50 respondents (n=50) from the A and B income groups which

include the Middle-middle, Upper-middle and elite class of the society since they the main

consumers of packaged milk. Out of our sample size of 50 respondents

Sampling Technique

Our sampling technique comprised of the following two steps.

Quota Sampling

The sampling was done on the basis of quota and the quota was assigned as 10 people from 5

different areas namely Defence Housing Authority, Model Town, Cantt, Gulberg and Bahria

Town.

Judgment Sampling

The sampling within the 5 areas was based on pure judgment. The person who seemed to belong

to the upper, upper middle and middle classes of the society was selected.

QUESTIONNAIRE ANALYSIS

The following is the analysis of our questionnaire and it entails a question by question analysis

which provides an insight of the brand’s perception in the minds of the consumers and how

successful the brand has been in translating its values to the consumers. With the help of this

questionnaire we have been able to check the match between the Brand Inventory and the Brand

Exploratory as in what the Brand has tried to do in order to market Nestle MilkPak.

Question. When you recall packaged milk which brand comes at the top of

your mind?

72%

22%

1%5%

When you recall pacakged packaged Milk which brand comes at the top of your mind?

nestle olper's Haleeb GoodMilk

Analysis

This question was designed to check the top of the mind awarness of consumers about

Pakcakged milk brands. From the results we can infer that with 72% of votes ,Milkpak has a

clear edge. Thus the brand recall of Nestle Milkpak is fairly good.

Question. Have you ever used Nestle Milkpak?

96%

4%

Have you ever used Nestle Milpak?YES NO

Analysis

96% of the people we surveyed have used packaged milk at some point of time. It was a filter

question , aimed at finding out whether we were surveying the right individuals.

Question. Which packaged milk brand is more used in your circle of

friends/family and colleagues?

57%32%

3%6%

2%

Which packaged milk is is more used in your circle of friends and family?NESTLE OLPER,S HALEEB GOOD Milk OTHERS

Analysis

This question was aimed at finding the opinions of a wider target audience (More than just our

surveyed sample). Results showed that 57% of the people in social circle of our sample used

Nestle Milkpak.

Question. To what extent does Nestle Milkpak have special features compared

to other brands (e.g. Iron, brand image, nutrition, health and taste)?

Analysis

This question was aimed at finding the degree of differentiation that Nestle has as compared to

other brands. The results suggest that majority of the people (89%) thought that Nestle was “to

some extent “ different from other packaged milk brands.A good sign could be that no one

answered “not much” or “not at all”, this signifies that atleast there was some differentiation that

consumers felt.

Question. To what extent do you feel you grew up with Nestle MilkPak?

58%

4%2%

36%

What is your perception about Nestle Milkpak advertiement?

Healthy lifestyle culture reliability all the above

Analysis

The purpose of this question was analyse that whether the values and meaning that nestle

milkpak was trying to convey in it’s Ad campaigns was actually depicted by the consumers or

not. The main theme of their ad was based on healthy lifestyle, and 58% of the people infeered

healthy lifestyle from the advertising campaigns of Nestle milkpak.

Question . Which of the feelings does Nestle Milkpak generate?

5%

3%4%

86%

2%

Which of following feelings does Nestle milkpak generate?

care warmth social status satisfaction none of above

Analysis

The purpose of this question was analyse that whether the feelings and emotions that nestle

milkpak was trying to convey in it’s Ad campaigns was actually depicted by the consumers or

not.86% said its showing a satisfied life,5% said care while lowest number was in warmth.

Question. Which of following brand element appeals you the most?

11% 3%2%

84%

Which brand element of Nestle Milkpak attracts you the most?

clour logo symbol slogan jingle name

Analysis

This question was designed to find the most inflencing brand element in consumers and 84%

said the brand name itself while 11% said colour and 2% said logo.none of responded find the

jingle or symbol convincing.

Question. What is your overall opinion of Nestle MilkPak?

11%

74%

15%

What is your overall opinion of Nestle milkpak

exellent good neutral bad worst

Analysis

74% of the people felt that Nestle Milkpak was good, 15 % had a neutral opinion,

and 11% thought it was excellent. No one thought it was bad or worst.

Question. How likely you would be recommending others to use Nestle

Milpak?

3%

84%

13%

How likely you would be recommending Nestle Milkpak to others?

most likely more likely neutral less likely not at all

Analysis

This question was designed to determine brand loyalty and 84% gave a positive response which

is high number.

Question. If Nestle Milkpak was a person what gender it would be?

45%

55%

If Nestle Milkpak was a person what gender would it be?

male female

Analysis

This was about brand personality and 55% respondants associated brand with femininity and rest

described as male oriented.

Question. If Nestle Milpak was a person what age bracket would he/she fall

in?

2%

49%40%

5% 5%

If Nestle Milkpak was a person in what age bracket would he/she fall?

4-12 years 13-21 years 22-30 years 31-39 years 39 or above

Analysis

As 49% said it is 13-21 years old,40% said 22-30.Most of people consider it a energetic and

young brand.

Perceptual Map

Analysis and Interpretation of Data

We conducted data reduction and analytical techniques of factor analysis to better understand the

how Nestle its placed relative to its competitors in the mind of the consumer.

Factor Analysis

We conducted the factor analysis based on the Q.5 of our questionnaire. Respondents were asked

to give a perceptional rating to different competing brands in the processed milk category. We

analyzed a total of 50 consumer responses

Based on the factor analysis done with the help of statistical techniques we got the following

result.

FACTOR Trustable Brand Processed Taste Effective Marketing Mix

ATTRIBUTES

Well Known Brand Taste Quality

Nutritional Value Attractive Packaged High Price

Healthy Advertisement

Purity Availability

Table 1 - Three Factor Analysis

From these factors we can easily see that our target population thinks in three different

dimensions when making a processed milk purchase/consumption behavior. One interesting

finding is that the attribute “Tastes Good” is negatively correlated with Attractive Packaging

which shows that consumers consider a product which focuses more on its attractive packaging

is more processed in terms of taste (or deviates from natural taste of milk). This result gives an

important insight from the marketing point of view i.e. a marketer of packaged milk needs to

address three major concerns of the target population namely Trustable Brand, Processed Taste

and Effective Marketing Mix.

Attribute Rating & Perceptual Maps

We also used the factor data to create perceptual maps showing the relative positions of

thedifferent brands (Nestle, Olpers, Haleeb and Good Milk). We used the Factor Scores

(calculated using the statistical technique of Factor Analysis) to calculate the mean scores for

each brand in each of the three factors. The final perceptual maps are given hereunder.

It can be easily seen from the Trustable Brand – Effective Marketing perceptual map, that Nestle

is perceived to be positive in terms of being a more Trustable Brand than Good Milk and Haleeb

even though Olpers is higher on that dimension but consumers also believe that that in terms of

pricing in marketing mix the price seems higher compared to the perceived value consumers

obtain when they consume the product. Olpers on the other hand seems to make a pretty positive

impression in terms of its Advertisement and Distribution in its Marketing Mix

In the Trustable Brand - Processed Taste perceptual map, Nestle although perceived to have an

attractive packaging but also consumer perceive that due to more treatment of milk during

processing the milk might have lost its natural taste and seems more artificial which might also

be effecting the trust of the consumers versus Olpers. Good Milk is the negatively placed both in

terms of trust as well as its taste and packaging where as Haleeb looks to be stuck in the center

showing that consumer are confused when it comes to Haleeb.

Another important insight obtained from these perceptual maps is that there is an opportunity for

Nestle for a new product launch in the segment where we give our consumer a higher value in

terms of a product which has a more natural packaging (could be transparent/translucent bottles)

and hence more perceived natural taste and leverage the high trust placed by consumers in our

brand while at the same time keeping the same advertisement and efficient distribution