Arslan Ahmed

NESTLE PAKISTAN (PVT) LIMITED Branding Project for Nestle Fruita Vitals Pina Colada Flavor Arslan Ahmed 822 5/4/2017 This document aims to look at the branding brief, the brand activation plan, the IMC plan as well as the marketing program of the new flavor Pina Colada recently introduced by Nestle. Contents Introduction ..................................................................................................................................... 5 Situation analysis-SWOT and PESTLE.......................................................................................... 6 SWOT ......................................................................................................................................... 6 Strengths ................................................................................................................................. 6 Weaknesses ............................................................................................................................. 6 Opportunities........................................................................................................................... 6 Threats..................................................................................................................................... 7 PESTLE ...................................................................................................................................... 8 Political ................................................................................................................................... 8 Economic ................................................................................................................................ 8 Social....................................................................................................................................... 8 Technological .......................................................................................................................... 9 Legal ....................................................................................................................................... 9 Environmental ......................................................................................................................... 9 Competitive analysis ............................................................................................................... 9 STPD of Nestle Fruita Vitals ........................................................................................................ 18 Segmentation............................................................................................................................. 18 Geographic Segmentation ..................................................................................................... 18 Demographic Segmentation .................................................................................................. 19 Psychographic Segmentation ................................................................................................ 19 Behavioral Segmentation ...................................................................................................... 20 Positioning ............................................................................................................................ 20 Differentiation ....................................................................................................................... 20 Marketing Program ....................................................................................................................... 21 2 Product ...................................................................................................................................... 21 Price .......................................................................................................................................... 22 Placement .................................................................................................................................. 22 Promotion.................................................................................................................................. 23 People........................................................................................................................................ 23 Brand Brief.................................................................................................................................... 23 Vision ........................................................................................................................................ 23 KPIs............................................................................................................................................... 24 Building Awareness- ............................................................................................................. 24 Induce Trials- ........................................................................................................................ 24 Enhance the image- ............................................................................................................... 24 Strategize techniques .................................................................................................................... 27 Decide on the brand elements and narrow down to three to five elements. ............................. 28 Brand name ........................................................................................................................... 29 Brand Logo ........................................................................................................................... 29 Brand slogan ......................................................................................................................... 31 Brand Tagline........................................................................................................................ 31 Brand Packaging ................................................................................................................... 31 Brand Tone............................................................................................................................ 31 Brand Consistency ................................................................................................................ 32 Brand Image .......................................................................................................................... 32 Brand activation plan .................................................................................................................... 32 Which brand elements to activate? ........................................................................................... 33 IMC plan for Brand Elements ................................................................................................... 34 TTL ....................................................................................................................................... 34 3 BTL ....................................................................................................................................... 35 ATL ....................................................................................................................................... 36 Timeline for new product development ........................................................................................ 37 Market Testing .............................................................................................................................. 37 Launch........................................................................................................................................... 38 Post purchase/consumption feedback ........................................................................................... 38 Contingency Plan .......................................................................................................................... 38 Works Cited .................................................................................................................................. 39 4 Introduction Nestlé is the world's leading nutrition, health and wellness company. In Pakistan Nestle is one of the very few eminent MNCs with revenue figures reaching the hundred billion mark in the year ended December 31, 2015. (Nestle Pakistan) Through its tagline, "Good Food, Good Life", it promises to provide its customers with superior quality food and beverage products to enhance their lives. Nestlé Pakistan cares about all the dimensions of product quality namely delivery, cost, innovation, flexibility and. Furthermore, Nestle Pakistan is also committed to fulfill all the possible customer definitions of quality be it performance, product features, durability, reliability, serviceability, conformance to quality standards, aesthetics and overall quality of the product perceived by the customers. As a socially responsible corporate, it always focuses on environment friendly operations, ethical business practices and its responsibility towards the communities. Nestle operated in Pakistan under a joint venture with MilkPak Ltd. since 1988 until it took over the management of MilkPak Ltd. in 1992. Nestle Fruita Vitals aims to be the top of the line brand that people think of when it comes finest quality category of juices, drinks and nectars. Nestle Fruita Vitals offers the promise of superior quality with high quality fruits sourced from around the world. Apart from great taste, the entire range is Calorie Smart which means less than 100 calories per serving making it perfect for a healthy lifestyle. Nestle Fruita Vitals is currently available in Kinnow, Apple, Red Grape, Pineapple, Chaunsa, Guava, Peach, Pomegranate and 100% Orange variants. Nestle Pakistan‟s website proclaims: Striving to bring you the best of nature, Nestle Fruita Vitals proudly announces the launch of its Exotic Mixes Range through two new flavors - Mint Margarita & Pina Colada. Beat the heat this summer and refresh yourself with our NEW flavors which bring to you the perfect beach feel. (Nestle Pakistan) This report will look at the new flavor of Pina Colada Nestle recently launched under the Nestle Fruita Vitals label and look at its marketing program and STPD followed by the brand‟s Key performance indicators (KPIs), brand elements and based on that build a brand brief and finally also devise a plan for the activation of the brand elements that could achieve the KPIs. 5 Situation analysis-SWOT and PESTLE SWOT Strengths Nestle enjoyed market leadership position in the juices category, showing a market share percentage of 40 percent in the year 2016. (Euromonitor International) Nestle Fruita Vitals strengths are the strong brand equity of the parent company Nestle, its perceived quality image among the customers in terms of better taste and in terms of being better than the local brands in Pakistan, the strong distribution within Pakistan and sound training policies for the retailers of the company. Another, strength is the company‟s ability to spend big on promotion efforts and communications and enlist big celebrity names like the actor Shaan Shahid and the singer Ali Zafar. Also, Nestle has a very high spending on Research and Development functions with initial product tests on Nestle juices running up to 500. It also entails that Nestle is at the forefront of discovering new food and beverage ingredients and trends. Weaknesses Nestle Fruita Vitals weakness is its dependency on the suppliers without which it cannot have the raw material, both fruits and the packaging. This dependency erodes the bargaining power of Nestle. Another weakness is that at the end of the year 2016 an issue surfaced that a pack of juice was found with mold in it. This brought into question the strength of the supply chain of Nestle to deliver faultless products and also compromised its image of health, wellness and nutrition. The analysis showed that the problem was at the distributor‟s end who kept an expired product on the shelf. Opportunities There are countless opportunities for Nestle Fruita Vitals as it is a leadership brand as our research placed it in the lower left corner of the leadership location in the DEREK Grid, which means that it has a lot of potential to grow. Also, its high esteem among consumers shows that consumers wait for the brand to launch new flavors and exciting combinations. Another opportunity also lies in varying their packaging size; doing so has the potential to strengthen their market leadership position as no other juice brand currently has launched new packaging 6 variants and a first mover advantage can be had. Another opportunity that Nestle can cash on is to launch a healthier, low sugar, high juice content (more than 50 percent) to a specific target segment of health conscious consumers. Also, as Nestle is a big name there is always the opportunity to get debts at low interest rates to fund new initiatives. Threats There is competition from a number of players in the juice category that can bring the market share down. Also, the weakness recently found in the supply chain that led to a faulty product if not rectified or not supervised properly can lead to an erosion of the brand image. Another threat is that in future there can be a shift towards more healthy pure fruit juices without any preservatives, artificial flavors or sugar. Also, the constant currency fluctuations are a threat as they can erode the real value of earnings received by Nestle in Swiss Francs. Figure 1 SWOT analysis of Nestle Pakistan Strengths Weaknesses  Market leadership in the juices category   Very high brand equity of parent company, Low bargaining power vis-à-vis suppliers of raw materials  Nestle Dependence on distributors who could  Strong distribution network overlook product quality delivered to  Training program for retailers customers.  High budgets for promotion activities  High spending on research and development Opportunities Threats  Opportunity to vary packaging sizes  Strong existing and emerging competitors  Opportunity to launch innovative new  The currency fluctuations could lead to loss flavors  in real value of earnings  Opportunity to launch more health based variants to target specific consumer juices for health concerns segments  In future, customers could shift to pure Opportunity to get low interest debts to fund new initiatives 7 PESTLE Political The government may increase the tax rates, hampering the disposable income levels of the consumers and also the prices of the products. Also, there can be political instability in the country that can destabilize the businesses and the economy. Currently, Pakistan has regained its political stability and seems poised in the right direction. However, recent suicide bombings have created a question mark once again on the security situation. Only a year ago Pakistan also experienced a major overhaul in the business situation due to the sit-in protest by the opposition party in the capital city. Economic Pakistan‟s economy is currently the 40th largest in the world. (The Express Tribune) It has improved its position in the ease of doing business index to 144th position among 190 countries. “Over 78% American companies are committed to investing more in Pakistan over the next 12 months, up 13 percentage points compared with 65% in last year, according to a perception survey conducted by the American Business Council (ABC) of Pakistan (ABC).” (The Express Tribune) Meanwhile, for Nestle the Social Currently the target market that Nestle Fruita Vitals is targeting is the populations from 20 to 40 years of age. The population percent for the age group from 15-54 is 58.18 percent (Index Mundi), showing that Nestle Fruita Vitals is looking at a sizeable population. Also, as Pakistan is a high context culture (Lee's Global Reputation Management Blog) meaning that social events and familiarity and intimacy among individuals is preferred. Nestle Fruita Vitals is such a product which is consumed at such social events which foster closeness and celebration. Also, Nestle in Pakistan is a big corporate social responsibility player and many projects and programs by Nestle are targeting social uplift in Pakistan. 8 Technological At present, the manufacturing process of juice is to see no significant changes in Pakistan. Meanwhile, the only significant factor is the shift and preference to digital media in the communication and promotion activities by many companies in Pakistan. Legal The juice supply chain by Nestle Fruita Vitals is conforming to all legal requirements. Environmental Nestle is a very environmental conscious company and invests significantly in being environmentally responsible. Competitive analysis Figure 2 Levels of competition for Nestle Fruita Vitals Budget Competition Generic Competition Product Category Competition Product Form Competition 9 • All items that capture the wallet share • Fruits • Food items • Nutritional supplements •Categories in the beverages: •CSDs •Non-Carbonated drinks •Fruit Flavored drinks •Bottled water •Sports and Energy drinks •Fresh home squeezed Juice •Fruitien •Shezan •Shezan All Pure •Rani •Minute Maid •Shakarganj At present, Nestlé‟s biggest competitor at the product form level of competition is Fruitien. Fruitien, claiming to have 40 percent fruit juice is using almost same package shape as the package of Nestle while the imagery on the pack is similar too. At second is Shezan, followed by Shezan All Pure. Shezan‟s All Pure is claiming to use no sugar, or preservatives or stabilizers just pure juice. There are some new entrants like Shakarganj that are bringing in very innovative flavors that may in future serve as big competitors to Nestle Fruita Vitals. At the product category competition level come all kinds of beverages like bottled water, flavored milk, iced and hot tea, coffee, vegetable juices, carbonated soft drinks, non carbonated drinks, energy drinks, vitamin waters and others. At the generic level come fresh fruits themselves, other food items and nutritional supplements. At the budget level are all items that have a share in the wallet of a customer. At present, the product category competition for the customers we surveyed stands as below: Figure 3 Consumption behavior of different beverages in the surveyed sample. Softdrinks 35 NUmber of Consumers - Softdrinks CSD Juices Milk Shakes Smoothies Natural Juices 31 30 7 1 1 10 Brand Equity Analysis of Nestle In order to gauge the current value of the brand equity possessed by Nestle Fruita Vitals a qualitative study was conducted spanning 70 40 minute long interviews with customers. The tool that was used to construct the interview questions was the Brand Value Chain while the aspects of the brand that were questioned were derived from the Brand Asset Valuator (BAV) or the DEREK model. The sample was drawn proportionally from the population of Lahore keeping in mind the demographics of the overall Pakistani population. The calculation for getting the BAV results made use of the questionnaire. There were 9 questions selected to explain differentiation. The questions were: 1) Which fruit juice is market leader according to you? 2) When you think of juice, which brand of juice comes to mind? 3) What is your favorite juice brand? Give reasons why? 4) Do you think Nestle is fair to call itself Calorie Smart? 5) Which ad of Nestle Fruita Vitals do you remember? 6) In your experience do most retail outlets have an eye catching display of Nestle Fruita Vitals? 7) Has it happened ever that just as you were entering a retail store or just some steps in you spotted the refrigerator or the shelf of Nestle Fruita Vitals? If yes, did that make you buy the juice although you did not come in to buy the juice? 8) What image do you associate with Nestle Fruita Vitals? Why do you associate this image? 9) What is the current price of Nestle Fruita Vitals 200 ml pack? Explain what would be the change in your consumption of Nestle Fruita Vitals in the scenarios below:  There is a decrease in price by PKR 10  There is a decrease in price by PKR 5  There is an increase in price by PKR 5  There is an increase in price by PKR 10. There were four questions selected from the questionnaire that explained the energy factor. They were: 11 1) Do you suggest that Nestle Fruita Vitals should have more flavors other than the current range of flavors? Which ones? 2) Do you think Nestle Fruita Vital needs to launch new packaging sizes? 3) Explain what you know of the current communication and promotion activities of Nestle Fruita Vitals? Do you feel that these activities have messages and themes that can be carried into the future without much change? Why do you feel that? 4) Do you think Nestle Fruita Vitals has ability to predict your future needs? There were three questions asked for relevance. They were: 1) On what occasions do you/or would you like to consume Nestle Fruita Vitals? 2) Do you consider price while buying Nestle Fruita Vitals? 3) Does Nestle present itself as a health, wellness and nutrition company appropriately in promotion activities? There were ten questions asked to gauge the esteem factor of Nestle Fruita Vitals: 1) In case Nestle Fruits Vitals is not present at a shop, would you buy another juice brand or go to another store to get Nestle Fruita Vitals? If you would buy another brand, which one would it be? 2) Do you feel the TVCs of Nestle Fruita Vitals help you become loyal to the brand? 3) Do you feel pride in consuming Nestle Fruita Vitals? 4) What do you say about the quality of Nestle Fruita Vitals? 5) Can you think of any changes that can be made to Nestle Fruita Vitals? 6) Will you stay loyal in case of negligence caused by distributor/logistic partner? 7) Would you recommend Nestle Fruita Vitals to a friend? 8) What can you say about the personality or character of people who consume Nestle Fruita Vitals? 9) Describe Nestle Fruita Vitals in two words. 10) Explain in a few words if you feel the price, promotion, product and placement of Nestle Fruita Vitals add value to the brand. There were ten questions asked for the factor of knowledge: 1) What are the flavors of Nestle Fruita Vitals? 12 2) What is the 3s promise of Nestle Fruita Vitals? 3) Tell me about a brand promotion activity/event you attended or participated in which was sponsored by Nestle. 4) What is the tagline of Nestle Fruita Vitals? 5) Do you know of the customer support service Nestle Naata? What is it? Have you ever used it? 6) What are the colors of the Nestle Fruita Vitals logo? 7) Are you aware of the Nestle Fruita Vitals online complaint registration system? 8) Are you aware of the TetraPak logo on the package of Nestle Fruita Vitals? What does it mean? 9) Do you know the meaning of the word Nestle? 10) Describe the logo of Nestle? Differentiation in the context of Brand value chain can be defined as the uniqueness and exclusivity of the marketing program, the brand name, the associations customers apply to the brand, customers‟ attitudes towards the brand, the positioning against the competitors as well as other points that can create meaningful points of difference in the customers‟ minds. The factor of differentiation was calculated as the sum of the favorable responses to a question that reinforced that the brand was differentiated. It is the highest rated at a 69.5 score out of a total of 100. Since the respondents were 70, the total of the responses came out to be a multiple of 7. The favorable responses were totaled for each of the questions and the sum was divided by the total number of responses. Next, the resultant fraction was multiplied by 100 to get a percent value. To elaborate, calculation for differentiation is shown below: Total number of questions=9 Total number of respondents=70 Total possible responses= 70x9 = 630 Total number of favorable responses= 438 13 The average of the 630 responses= 438/630 = 0.695x100 = 69.5% or 69.5 points out of a total of 100 points. The factor of Energy as it relates to Brand Value Chain can be explained as the brand‟s ability as perceived by the customers to fulfill their future needs. It also applies to how new customers perceive the brand and respond to it. Figure 4 The scores of the elements of DEREK 80 70 69.5 68.5 - 50 38.9 40 30 20 10 0 Differentiation Energy Relevance Esteem Knowledge The factor of Relevance deals with how the customers think how the marketing program and the associations, attitudes and awareness they possess help them find the brand appropriate. It relates to the stages of consideration and trial in the new customers. 14 The factor of Esteem gauges how the marketing program and the resultant attitudes, awareness, the associations and activity of the customers relate to the respect and regard the customers feel for the brand. It tries to find out the liking of the customers for the brand. Ideally, the mix of these factors should be roughly equal and greater than a certain set number so that the brand can find itself in a leadership position. This ideal mix would result in significant market performance for the brand meaning that sales of the brand will give sizeable margins and the inelasticity relating to the demand of the brand. The market performance in turn gives you a highly favorable shareholder value meaning thereby the Price to earnings ratio, the market capitalization and the market price of the stock. The diagram on next page shows the Power grid of the BAV or the DEREK model. It puts the differentiation, energy and relevance together on the x axis and esteem and knowledge on the y axis. The coordinate of x and y values shows the position of the brand in the grid. Here we can see that Nestle Fruita Vitals with a score of 58 on the y axis and 53.5 on the x axis lies in the lower corner of the leadership quadrant. This shows that the brand has a lot of potential to grow and its power is in the positive. The lowest score amongst all factors is knowledge and it may seem like a disadvantage that your customers don‟t know well enough of certain factors relating to the brand like the meaning of certain promises the brand makes in the communications, the current tagline of Nestle Fruita Vitals, the meaning of the word Nestle or the description of the logo of Nestle, the online complaint registration system or the Nestle Naata service. However, in the BAV model the magnitude of esteem over knowledge implies that customers would still like to know about the brand and have not reached a point that they had got to know everything the brand represented and had given up on it instead. In other words, they like the brand still enough to know about it in future. 15 Brand Strength (Differentiation+Energy+Relevance) 100 Leadership Niche Eroding 50 0 New, Unfocused Commodity or Unknown brand 50 0 Brand Stature (Esteem+Knowledge) Figure 5 DEREK GRID FOR NESTLE FRUITA VITALS 16 100 Suggestions for the future New packaging and Flavors There were certain factors that showed that the respondents were interested in what the brand could do in the future. Out of a total of 70, 35 wanted new packaging sizes. Their suggestions were to have the 200 ml pack increased to 250 ml; introduce a two person serving worth 500 ml or to have a family size. Similarly, 35 out of 70 respondents also felt that new flavors should still be introduced as they felt that Nestle Fruita Vitals strength was the innovative variety of flavors. The issue of a false image Also, when it came to the question about whether they could explain a little about the current communication and promotion activities of Nestle Fruita Vitals and whether they had meaningful themes that could be carried into the future, 40 percent were clueless about the communication and promotion activities or their themes or felt that they were not appropriate. This was reinforced in a further question which asked whether Nestle positioned itself appropriately as a health, wellness and nutrition company in promotion activities and 40 percent said they did not, while only 28 percent felt they did. Another similar issue arose when the respondents were asked whether Nestle Fruita Vitals was right to call itself calorie smart and 50 percent said no to that. So a problem is evident regarding the image Nestle and Nestle Fruita Vitals may be trying to give of a Health, wellness and nutrition company but people are feeling that this image isn‟t genuine. When asked for suggestions for improvement 35 percent said that „provide promised things‟, „Decrease sugar amount‟, „Enhance the health wellness and nutrition image in promotions‟, „Launch Calories based drink‟ and „Make it more natural.‟ This should be tackled head on by either changing the constitution of the drink to make it more health based or to change the dialogue surrounding it. Price and Loyalty issues There was a 65 percent who felt that they wouldn‟t change their consumption to an increase or decrease in price and that showed an inelastic demand, a sign of a strong brand. However 35 percent still could shift their demand patterns and even switch to other brands. This shows that 17 still there are some who are not conscious of the price changes and don‟t have unbounded loyalty to the brand. As they were asked whether they would go to another shop to get Nestle Fruita Vitals in case it weren‟t available at an outlet, 41 percent said they would buy the available brand at the shop. This also brings to mind whether customers are buying Nestle Fruita Vitals and are insensitive to price changes because they believe that they don‟t have any other choice, as many people said it is better than other local brands. It could so happen if another brand that could provide better promises and a better brand name than Nestle if launched in future could take over the market. The results were calculated and placed on the DEREK grid as shown below: STPD of Nestle Fruita Vitals Segmentation Geographic Segmentation Currently the Pina Colada flavor is targeting only the major metropolitan cities in Pakistan, namely: 1. Karachi 2. Lahore 3. Islamabad 4. Rawalpindi 5. Gujranwala 6. Multan 7. Faisalabad 8. Sialkot 9. Hyderabad 10. Peshawar 18 The towns in these cities have populations corresponding to SEC A and SEC B. Demographic Segmentation The demographic that we are targeting are the individual young adults as well as the unit of families. Psychographic Segmentation There was an attempt made to see how the customers of Nestle Fruita Vitals were shown in the TV commercials and internet ads or communications videos to construct a psychographic profile of the customers. Also, primary research was made use of to know how the respondents described themselves and what image came to their minds of the people who consume Nestle Fruita Vitals. The most often appearing representations of customers in the ads were: hardworking individuals, sociable young adults, consumers who are quality conscious, fun oriented youngsters as well as taste conscious individuals. The primary research revealed that the customers while defining themselves used the adjectives: hardworking, fun loving, foodies, connoisseurs, family oriented as well as others. When the respondents were asked about the image they associated with the possible consumers of the juice they said quality conscious people or people who care for good taste or those who are family oriented. Figure 6. Psychographic profile of Nestle Fruita Vitals' consumers constructed through TV and Internet Ads Profiles of customers shown in TV or Internet ads Fitness conscious(shown working out) Hardworking Individuals Technology oriented Sociable Health Conscious Taste Conscious Status Conscious Quality Conscious Fun Oriented 19 Level of presence in TV or Internet ads Heavy presence Medium presence Low presence Family Oriented Behavioral Segmentation The research that we conducted revealed regarding the behavioral segmentation for the juice that the most amount of juice consumption among our sample was 51 percent consuming juice between two to five times in a week. At second, there were 36 percent who consumed juice between six to nine times a week while the third highest percent at ten percent were the consumers who consumed juice between ten or more times in a week. Figure 7. Weekly consumption behavior of packaged juices by the surveyed sample. Juice Consumption/week- Juice Consumption/week Less than 2 times 2-5 times 6-9 times 10 or more Positioning Pina Colada aims to provide togetherness and fun at social gatherings through a unique combination of flavors, while also claiming to bring the beach to you. Differentiation POPS (Points of Parity) – Tetra Prisma Aseptic packaging by the brand name TetraPak Ingredients of juice Sealed caps 20 PODS (Points of Differentiation)Sourcing original fruits from the world markets Brand Name of Nestle Tagline of Nestle Fun element associated with the use of the juice Attractive Imagery on the package Price In store display Extensive product testing spanning 500 tests to get the right flavor and constitution Marketing Program Product The product is the new flavor Pina Colada launched by Nestle Fruita Vitals. The constitution of 33% for fruit juice has pineapple juice sourced from pineapples in Indonesia, mango juice sourced from the Chaunsa mango farms in Pakistan. Other ingredients are sugar, natural sweeteners, dietary fiber, coconut water, citric acid, stabilizers, artificial flavor and ascorbic acid. The unique ingredient: Natural sweeteners, Mango Juice and Coconut water The product is differentiating itself against the competitors on the basis of the ingredients as currently no other local fruit juice competitor brand is using natural sweetener except Nestle. The flavor profile for Pina Colada is unique as it is using mango juice as well as coconut water. Pina colada is traditionally made with Pineapple chunks and coconut milk. Right now, the product has passed the stages of idea generation, screening, concept development and is at the product development stage where test marketing is being done through a limited launch in a few key markets and geographical locations in Pakistan such as the major metropolitan cities, like Lahore, Karachi, Islamabad, Rawalpindi, Multan, Faisalabad, 21 Hyderabad, Peshawar, Gujranwala, and a few others, before large scale commercialization can be done. Price The price is PKR 165 which is higher by PKR 10. Since it is slightly higher they are using the value based pricing as it is offering a unique combination of juices and flavors. Placement The placement is one of the most important aspects that Pina Colada is currently focusing on. The areas in any metropolitan city that Nestle Fruita Vitals is targeting for the soft launch are superstores and mega retailers existing in or near SEC A and SEC B towns. We evaluated the current setup in Lahore at Metro Airport, Jalalsons DHA Phase 5, HKB DHA, Alfatah DHA and Rizvi store in Allama Iqbal town near Moon Market. We found special wooden hut-like structures created at Jalalsons and Rizvi store. In Metro, HKB and Alfatah we found that the juices were displayed in company dedicated shelves. In case of Metro as the consumer entered the aisle of the juices he/she could see the special island shelves created at the far end of the aisle. These shelves make the new flavor prominent. Also, there are shelves for the Nestle Fruita Vitals juices at the end of the aisle on the shelves to the right. Over here too the new flavors are placed while an AD strip runs on top of the shelf as shown below. Nestle seems to have placed their shelves in the right places and make sure they have their products highly visible but there is research that suggests that: It‟s true that young people more often get attracted to products displayed on store shelves and has greater tendency of impulse buying behavior but results of this paper showed no association of impulse buying in higher income group of young people having prevalent impulse buying tendencies. (Muhammad Ali Tirmizi) However, our primary research showed that 51 percent respondents have been enticed through the power of the in store branding of Nestle Fruita Vitals to buy the juices although they had not planned to purchase the juices beforehand. 22 Promotion The promotions activities that Nestle has so far made use of are the PSL final toss moment, as well as ads on the Facebook page creating teasers about a surprise to be unveiled. At the moment of the toss, the surprise came out to be the two new flavors Nestle very recently launched. But so far Nestle has shied away from using any ATL tool as right now they want to make known the presence of the new product only and create interest in the people. For that purpose, People The people who are very important in case of the test marketing of the new flavor are the brand manager, the sales manager and the merchandising manager as well as the retailers who will display Nestle‟s stock. Also important are the people who will conduct the activity of inducing trials in colleges, parks and universities as well as those who will serve as brand ambassadors. Brand Brief Vision NESTLE FRUITA VITALSwants to maintain its leadership in the premium juices and nectars category by providing great taste, safe and artful packaging, a wide range of flavors and new unique combinations of flavors that enhance the well being and energy levels of the consumers. 23 KPIs Building AwarenessInitially create buzz and later after enough people know about the new flavors, increase awareness among the target market by 20 percent by the sixth month after launch. Current level of awareness: NIL. Desired Level: 20 percent in first six months. Induce TrialsIncrease the number of people who have tried the new flavor among the target population by 10 percent by the sixth month after launch. Enhance the imageRectify the past faults in juice packs by bringing error down to zero. After awareness and trial, enhance the image of the juice through meaningful brand content marketing and brand activities that give off a nice image of the new flavors. Nestle Fruita Vitals brand Key Performance Indicators are stated below:  Generating buzz and then Building Awareness  Induce consideration and Trials  Enhance the image These three form an interrelated structure as displayed in figure 1 on the next page. Building awareness, inducing trial and enhancing brand image lie in the centers of their respective orbits and are supported by the activities or their sub aims. Generating buzz and building awareness has supporting activities or sub aims of creating buzz through the use of teasers, choosing the right brand elements, building positive brand knowledge through promotion activities, selecting the right activities for helping customers know and also remember and to create recall and 24 recognition. The supporting activity of selecting the right brand activities is overlapping with the sampling activities needed to induce consideration and trials. Both building awareness and inducing trial are the prelude to enhancing image and we find that building a positive identity overlaps the building positive brand knowledge supporting activity in the building awareness orbit. Whenever a new flavor is launched the most important branding key performance indicators are generating buzz and moving onto building awareness and also inducing consideration and trial. Nestle Fruita Vitals had the following activities planned to create awareness and in turn induce trials regarding both Mint Margarita and Pina Colada:  Reveal the names of the new flavors in the toss moment of Pakistan Super League Final in Lahore, Pakistan. The sides of the coin were named as Pina Colada and Mint Margarita.  Reveal the names of the new flavors simultaneously on the social media with the reveal through the toss.  Choose the brand elements for the digital media posts on Facebook and Twitter which create associations with the summer time, with the fun time at beach and Nestle Fruita Vitals being an important part of the checklist for things to take to beach, the exotic nature of the flavors of the juices as well as the overall „Live Positive Sip Positive‟ tagline, the smoothness and freshness of the juices as well as the idea of refreshing oneself.  Sampling at mega retail stores like Metro and Alfatah. Apart from that have the signature reserved shelf space in the retail outlets for the two new flavors.  Have events at major hotels to help the business customers know of the two new flavors. Figure 8. The interaction of the key brand KPIs of Nestle Fruita Vitals 25 Build recall and recogntion Initially generate buzz Build Awareness Choosing brand elements Sampling activities Actitvity selection to help customers know and remember Induce Trial Generate positive word of mouth Build positive brand knowledge Build a positive identity through right elements Enhance the Image Build loyalty and commitment Measure brand equity The KPI enhancing brand image has the following activities and sub aims planned:  A TVC to enhance the image of freshness and positivity regarding Nestle Fruita Vitals with Ali Zafar as the ambassador. 26  The use of the right brand elements to link with health, wellness and nutrition.  The use of digital research through digital marketing analytics to gain knowledge about the customer opinion and dialogue surrounding the brand. Strategize techniques Our survey also revealed through the analysis of the responses that the brand elements of Nestle Fruita Vitals in that people know about or pay most consideration to or the least consideration to are as below: Table 1. The brand elements of Nestle Fruita Vitals according to their importance to customers. Brand Elements Primary importance Medium importance Nestle Nestle Fruita Vitals Nestle Fruita Vitals Logo Nestle Logo Font of Logo of Nestle Fruita Vitals Calorie smart label Package colors and design Nestle Slogan Sip Positive GDA amounts for adults Nutrition Information Halal label Tetra Pak 3S promise 3 steps to ensure quality In store display Promotional activities Mass media campaigns Likeable taste Health and Hygiene factor Digital marketing content Price Country of Origin of Nestle Address of manufacturing facility on Package Ingredients 27 Secondary importance Nestle Naata service label Sealed cap Information about Serving Chilled Information about Shaking well before use Country of procurement of fruits Brand tone Decide on the brand elements and narrow down to three to five elements. There are five elements which are the most important amongst the ones in the table above: Brand Elements Evaluation Brand Memorable Meaningful Likable Transferabl Elements e Adaptable Protectable Differentiat ed Nestle Nestle Fruita Vitals Package colors and design Nestle Fruita Vitals logo Nestle Logo Below follows a discussion of the primarily important brand elements in the table above as well as some others which are not in the table above: 28 Brand name The main brand is Nestle and Sub Brand is „Nestle Fruita Vitals.‟ Both of these brand elements are primarily important as they have a major impact on the decision to buy for the customer. Both of them also aid the customer in building brand awareness as our customers both can recall and recognize these elements. To understand their power to help customers recall we asked our respondents the question which brand of packaged juice comes to mind when they think of juice and 78.5 percent replied Nestle Fruita Vitals. To understand recognition we asked what the name of juice brand by Nestle was and we found that 88 percent said it was Nestle Fruita Vitals. Brand Logo Logo of Nestle History The Nestle logo is often considered as one of the world‟s most iconic and instantly recognizable logos. It has undergone several modifications over the years. Change in the logo of Nestle 1868 the logo changed when new owners took over the company. In 1875 the nest design became combined with "Nestle." In 1938 the design was simplified. 1966 in the design, they removed the worm from the bird's mouth since the company wasn't just about nutrition any more. Also, instead of four birds, there were now three. This was to illustrate the modern family of two children. 1988 the "Nestle" part of the logo used continuation because your eye follows the direction the line goes. (Famous Logos) 29 Current logo of Nestle looks like this. It represents modern family, health and well-being. Logo of Nestle Fruita Vitals 30 Brand slogan Slogans of Nestle Fruita Vitals have changed from time to time. Recently Nestle launched a new campaign with slogan „Sip Positive‟. The reason we did not include the slogan in the most important brand elements is because our survey shows that people do not know the current slogan and hence it is not yet registered in their minds, meaning it does not influence their buying decisions. Before that there have been different campaigns with slogans  Get Real  Dil se  Dream Again  Real Fruit Real Fruita Vitals  Football Frenzy  Rise and Shine life  3S Promise Brand Tagline The tagline of Nestle is „Good Food Good Life‟. Brand Packaging Nestle Fruita Vitals was being launched in Prisma Pack for the first time in Pakistan and Tetra Pak was helping Nestlé out in the designing of the packaging. They retained the Nestlé red color but at the same time wanted to develop a more prominent ID for Nestle Fruita Vitals so that it could register well. The color scheme they then used is Red, Black and Gold. These colors show royalty of this juice brand. This color scheme differentiates the brand from others, shows its dominance over other juice brands. The packaging is for SEC A and B and had to be sophisticated and classy. Brand Tone Nestle Fruita Vitals is all about being real, being genuine, being grounded and feeling proud in your own skin. In a world full of posers, pretenders and actors, it‟s refreshing to come across 31 people who are truly genuine, who are not afraid to be upfront about who they are. These people know what really matters. Brand Consistency “Nestle Fruita Vitals” has maintained a strong image in the consumers‟ mind due to its performance and the strong image of the parent company. This is fact and it is backed by our survey as people associate the brand with high purity, taste and quality. Nestle is a trustworthy, innovative and likeable company because it invests in Research & Development on a regular basis; it regularly conducts marketing research to keep consumers view in mind and always gives consumers good value for their money. Brand Image “Nestle Fruita Vitals” has a strong position in the consumers‟ minds and they call their target market young adults including people from all walks of life and the age bracket from 20 years to 45 years. This is a brand that brings satisfaction and comfort in terms of quality that it offers to the consumers as compared to other juice brands in Pakistan. Our survey showed us that 68 out of 70 respondents had positive double word associations. Brand activation plan What is lacking? The mega event that Nestle Fruita Vitals sponsored could not generate the required level of awareness. Only two customers among the surveyed seventy customers knew of the Pina Colada flavor. Most also were not aware that Nestle Fruita Vitals was one of the sponsors of PSL final. The digital marketing can only focus on the 1328,723 fan base of Facebook and 12200 followers of Twitter which are most likely shared followers between both Facebook and Twitter. Hence Nestle Fruita Vitals needs the following activities that can support its key performance indicators of generating initial buzz and building awareness, inducing consideration and trial as well as enhance the image:  Create unique brand activities that allow the sampling of the flavors to occur across a wider audience. Possible activities are: 32 o Have the college or university students taste the juices on campus, while they are made to sit on a beach chair under a beach umbrella in front of a beach backdrop. The same activity should also be conducted in public recreational places such as parks. o Have volleyball matches (for they are usually played on the beach) inside the campus and give the winning team two one liter packs of Pina Colada and Mint Margarita.  Make videos for YouTube and other video sharing sites which allow the brand to make its presence known. One possibility of the content of these videos is to have student ambassadors inside schools asking students which combinations they would like Nestle Fruita Vitals to launch, also make them try the two new flavors and ask for their opinions regarding them. Other possible ideas could be built on the same themes of how Nestle Pina Colada can refresh the students when they are feeling down in their hectic routines.  Create series of videos for social media that introduces the new flavors in a fun and unique manner using the beach as the most important symbol.  Hold competitions both in online (Nestle Kitchen) and physical settings that ask participants to make up refreshing drinks using these two new flavors.  An idea we thought of to activate the brand and in turn also generate sales is that Nestle should have online videos as well as small hoardings in public places which carry some missing words of enjoyment and fun that will be displayed along with the image of the Pina Colada flavor. A line below should say guess and win. For guessing purposes, the customers will have to buy the pack and guess the word, take a picture of the filled in word and send to an email ID or post online on the Nestle Fruita Vitals page. The winner will get a chance to win a trip to explore the beaches inThailand. Which brand elements to activate? The brand elements which we will activate are the brand name Nestle, the logo of Nestle, the brand name Nestle Fruita Vitals and the logo of Nestle. Apart from that we will also highlight the package design and colors. 33 IMC plan for Brand Elements For the year 2016 the percentage of the total selling and distribution operating expenses that Nestle is spending on promotion and communication activities is 61 percent or PKR 10.8 billion overall. (Nestle Pakistan LTD.) Out of this 10.8 billion budget, Nestle Fruita Vitals gets almost five percent or PKR 540 million. The digital media spend for Nestle Fruita Vitals is 5 percent or 27 million. The monthly spend on digital media comes out to be worth PK 2.25 million. The agency that is doing the digital media marketing for Nestle is Maxus by Group M. TTL Social media Maxus looks after all the aspects, online videos and ad building; content marketing, interaction with the customers on online platforms and deciding on the ideal spend among the various media available. Facebook ads Facebook can cost on average PKR 407 CPM for food and beverage business ads while PKR 17 for cost per click. We want the company to run ads everyday for a period of a month and look at reaching at least half the population of Facebook that of 12.5 million (25 million is the current Pakistani population on Facebook, (Profit)) as half the population of Facebook is between 18-34 years of age (Pakistan Advertisers' Society), the young adult population Nestle Fruita Vitals is targeting. That would cost the company PKR- in CPM to reach 12.5 million audience. Twitter ads Twitter ads depend upon the budget of the company and their pricing is different from that of Facebook. Since we are looking for video advertising on Twitter, the company‟s pricing structure in its own words is as below in case of video campaigns: You will only be charged for video views from that campaign. A view occurs when a video is at least 50% in-view on the watcher‟s device and has played for at least 2 seconds, or if the user clicks to watch the video in fullscreen. All other actions and engagements (impressions, replies, and Retweets, for example) are free. As of May 2016, we‟re also introducing the ability to bid on 34 the 3s/100 metric, which instead defines a view as 100% in-view on a user‟s device and watched for at least 3 seconds. (Twitter) BTL Panaflexes (2, 8 by 10 ft)(PKR 50 per sq ft printing PKR 8000 charges) Wooden Beach Chairs- 2 ft high (Set of 4)(PKR 2000 per 8000 chair) Beach Umbrella(8 ft diameter) 5000 Counter table for making drinks(4 by 4 by 1.5 ft) 4000 Nestle Fruita Vitals Pina Colada and Margarita one liter 4950 packs(30 packs for 150 servings) 10 extra packs to be given to 5 winners of the hunt 1650 activity as gifts Paper cups 500 Lime 500 Mint 500 Pineapple slice tins 600 Cocktail shaker 2500 Ice cubes 2000 Ice box(36 quart) 6000 Nestle and Nestle Fruita Vitals printed promotional 5,000 material (Small Nestle and Nestle Fruita Vitals Logo with fruit juice pictures in front of the table and standees) Ambience buidlers like, sea shells, sand buckets, shovels 3,000 and beach balls PKR 52200 Total 35 • The cost structure is for the minimum level of activity. • The minimum level is to have a single set of wooden beach chairs so a group of four could be seated under the umbrella sipping the juice, while we will take a photo from the participant‟s phone and ask him/her to upload it with #Nestle Fruita Vitals. • Only concern-This may lead to a wait time per attendee. • Also the minimum level can serve 150 participants as far as the juice quantity is concerned. ATL At present the ATL is not needed however in a month or so ATL will be needed while the product is launched at a wider scale. 36 Timeline for new product development •Idea generation •Screening •Research and testing to get the perfect consistency and flavor •Focus Groups for testing the flavor and concept October 2016- •marekting strategy development Start February •Product development 2017 •Decide on the store locations to sell 5th March 2017 • Create buzz at the PCL Final • Create online posts revealing the new flavors • start sending the new flavors into the chosen locations • Post videos, GIFs or static posts about the two new flavors • Track the sales in the designated store locations so market testing can be 5th March to done. present Future • If campaign is succesful then move onto a full fledged mass media campaign to build awareness and also have a wide spread nationwide launch. Market Testing Currently the juice is in the market testing stage. At this point the branding manager has to be in a close relation with the sales manager. The sales manager is in close association with the merchandising manager. There is a system at Nestle that uses order bookers who carry Nestle Sales mobility, an android app that allows them to record and stay updated with the demanded 37 volumes thorugh the features of order booking, the information about promotions, order history, sales history, inventory and transactional data of the last fourteen days. (Techlogix) Launch Right now the juice is in the testing stage. A launch will happen based on how the customers receive the juice. Currently, Nestle is using customer reviews and sales data from the test locations to gauge the customer response. If the response is substantially positive then the company will decide to have a bigger launch in the country. Post purchase/consumption feedback The post consumption feedback for the brand activity events are the customers‟ responses after the brand activities inside the colleges and universities and on the digital media. The system for assessing for Nestle is to look at the number of repeat sales at a certain store. Nestle Sales mobility, the digital tool helps a lot in recording and tracking the sales behavior. Other tools for Nestle are the direct consumer research through the help of agencies such as Iris Communications. Another method for gaining post purchase feedback is the Nestle Fruita Vitals Twitter and Facebook pages. Contingency Plan Nestle Fruita Vitals will have to draw the flavor of Pina Colada out from the market in case it does not get liked by the people. The Plan B can be to find new flavors. Our research suggested that the idea of having exotic fruit flavors was something the customers liked. Nestle Fruita Vitals could try to launch new flavors. Even better could be to launch a health based drink with lower calories, more fruit juice content and no artificial flavors with minimum levels of sugar or even greater amounts of natural sweeteners. 38 Works Cited Euromonitor International. Juice in Pakistan. . Famous Logos. Nestle Logo. 3 4 2017 . Index Mundi. Pakistan Age Structure. . Lee's Global Reputation Management Blog. . Muhammad Ali Tirmizi, Kashif-Ur-Rehman, M. Iqbal Saif. "An Empirical Study of Consumer Impulse Buying Behavior in." European Journal of Scientific Research (2009): 522. Nestle Pakistan LTD. "Financial Report 2016." Financial Report. 2016. Nestle Pakistan. Nestle Fruita Vitals. 01 04 2017. 01 04 2017 . —. Press Release: Nestlé Pakistan crosses PKR100 billion mark- . Pakistan Advertisers' Society. Social Media Marketing Analysis-June 2014. . Profit. Bramerz-The unique story of losing satisfied customers and then fighting back-. . Techlogix. "Nestle sales mobility." 2014. Techlogix. . The Express Tribune. "17 predictions for Pakistan's economy in 2017." The Express Tribune-. 39 —. "Over 78% American companies say willing to invest more in Pakistan." The Express Tribune-. Twitter. Twitter Ads Pricing. . 40