Marketing Mix-4p’s Strategy of Nestlé Pure Life (Npl)
Product Strategy
1. Product Positioning: Product is something that is offered to the market. Nestlé Pure Life (NPL) product strategy studies show that they are positioning the product with respect to its attributes that NPL is safe, pure, refreshing and healthy water. 2. Product line expansion: Nestlé also does product line expansion; recently it has offered a 0.25 liter bottle of NPL in the market. It’s also using the company name with its product name i.e. Nestlé Pure Life. NPL round shape and elegance of the bottle are instantly recognizable.
Quality is cornerstone of NPL success. Nestle people say: “Quality is our more successful product and it is key to our success today and tomorrow.”
Pricing Strategy
1. Non-price competition: In Price strategy, Nestle has adopted the strategy of non-price competition. It is offering one price for NPL to all cities of Pakistan. It also keeps the check on distributors to maintain single price of NPL. It offers trade discounts to its distributors.
2. Cost Based Pricing: The cost of production, which stands at the base of all pricing strategy, is well reflected in Nestle Pure Life price. Its rather higher price relative to other bottled waters can be explained using the Pricing Strategies Matrix. Since the quality of Nestle Pure Life is very high both from the Company’s and the consumers’ perspective, the high price justifies itself.
Place of Distribution Strategy
1. Intensive distribution strategy: Placement is the distribution of the product to its customers at right time, in right quantity, at right price and at right place.
To ensure this, channel adopted by the Nestlé for distribution of NPL is as follows:
Producer Wholesaler Retailer Consumer
NPL comes under the category of Fast Moving Consumer Goods (FMCG), so for this the timely supply is very important that’s why Nestlé is following intensive distribution strategy.
Promotion Strategies
1. Sponsorship: The Company is actively involved in sponsorship of educational and sports activities. In particular, the company sponsors Youth Pakhtakor, a young football team, and the friendly meetings or competitions of that team. Furthermore, outdoor posters and banners, references in movies and articles have made tens of thousands of people subconsciously aware of Nestle Pure Life (and other Nestle products).
2. Public relations: For establishing public relations, Nestlé distributes its newsletters, annual reports, calendars and diaries, lobbying, donation for charitable and civic events. For the victims of 8th October 2005 earthquake, Nestlé has donated 90 trucks, which were containing different foods items, and NPL was one of them which are around Rs. 2 Billion. The Nestle organized its teams to distribute products to the affected areas and all employees contributed from top to bottom.
