Marketing Mix:

Nestlé Pure Life

Marketing Management

By: Nihal Abdul-Mohsen Abdullah Kilany

Supervised by: Dr. Ashraf Talaat

ESLSCA Business School

MBA.NTA 60

March, 2019
 Table of Contents
INTRODUCTION..........................................................................................................3

Introduction about Nestlé Pure Life........................................................................3

Marketing Mix including 7 Ps........................................................................................4

PRODUCT.....................................................................................................................5

Academic Explanation............................................................................................5

Product in Nestlé Pure Life.....................................................................................5

Conclusion..............................................................................................................6

PRICE.............................................................................................................................8

Academic Explanation............................................................................................7

Price in Nestlé Pure Life.........................................................................................7

Conclusion..............................................................................................................7

PLACE...........................................................................................................................8

Academic Explanation............................................................................................8

Place in Nestlé Pure Life.........................................................................................8

Conclusion..............................................................................................................9

PROMOTION..............................................................................................................10

Academic Explanation..........................................................................................10

Promotion in Nestlé Pure Life..............................................................................11

Conclusion............................................................................................................11

PEOPLE.......................................................................................................................12

Academic Explanation..........................................................................................12

People in Nestlé Pure Life....................................................................................12

Conclusion............................................................................................................12

PHYSICAL EVIDENCE.............................................................................................13

Academic Explanation..........................................................................................13
 Physical Evidence in Nestlé Pure Life..................................................................13

Conclusion............................................................................................................14

PROCESS.....................................................................................................................15

Academic Explanation..........................................................................................15

Process in Nestlé Pure Life...................................................................................15

Conclusion............................................................................................................16

Reference......................................................................................................................17

1. Introduction
They say “Our portfolio covers almost every food and beverage category – giving
consumers tastier and healthier products to enjoy at every eating occasion and throughout
life’s stages including times of special nutritional need”.

Nestlé Co. has earned the trust of the Egyptians since 1870 as it started with its products
of milk and infants food. From 1900 to 1950, Nestlé Co. started to expand especially in
countries outside the European Union as a result of World War I. In 1930, Egypt
ranked 6th worldwide in the sales of condensed milk, another new product was added to
the list which is the classic Nestlé Milk Chocolate Bar.

In the Nationalization years of 1952 revolution, Nestlé Co. has added brand new products
of, Maggi, Nido, Nestlé Cocoa and many more. Nestlé brands have increased in
popularity, offering generations of Egyptians a diverse range of food and beverage
products catering to all life stages.

Nestlé Company’s objective is to build a business as the world's leading nutrition, health
and wellness company based on sound human values and principles. This prevails in its
nourishing products and their delivery to the customers in the best possible way. Nestlé
has five brands from which several products are subordinated from these following
brands.

Baby foods Cerelac

Bottled water Nestlé Pure Life, Perrier, Baraka
Cereals Chocapic, Lion, Fitness, Nesquik Cereal
Chocolate & confectionery Quality Street, Kit Kat, Smarties, Lion
Nescafé Classic , Nescafé 3 in 1, Nescafé Cappuccino,
Coffee
Nescafé Decaff, Nescafé Gold
Culinary Maggi
Dairy Coffee-Mate, Nido 
Food service Nescafé, Nestea
Ice cream Mövenpick, Nestlé Ice Cream , Dolce

Not only was Nestlé Company interested in giving its consumers delicious and quality
food, but also they announced on Twitter that Nestlé is committed to supporting youth’s
transition from education to work through providing internship and apprenticeship
opportunities serving the Egyptian youth community transferring smoothly to the market
place.

2. Marketing Mix including the 7 Ps

The Evolution of the Marketing Mix

Marketing mix refers to the amounts and kinds of marketing variables the firm is using at
a particular time.

Besides the traditional elements of the Marketing Mix which are the four Ps, integration
into the marketing mix was a necessity with regard to the new developments in the
marketplace; especially the advancements in customer service and social media.

This gave the opportunity to add another three components to the marketing mix process,
people and physical evidence. This was an addition to the originally known elements
which are product, price, place and promotion; they were the base for the marketing
principle of the marketing mix. Each component of the 7 Ps; whether the traditional or
the newly added will be discussed academically in the case of Nestlé Pure Life products
in the following pages with this arrangement:

1- Product 2- Price 3- Place 4- Promotion 5- People 6- Physical Evidence 7- Process

3. Product
Academic Explanation

According to Kotler and Armstrong, “product element in the marketing mix refers to
anything that can be offered to a market for attention, acquisition, use or consumption
that might satisfy a want or need”. They broadly define products including services
besides tangible objects. Services are a form of product serving the customers through
activities and benefits like banking services, airline travel and communication.

Product mainly brings value to customers which at the end form profitable customer
relations. As the customers become more knowledgeable about the market of the
products they want, the product element continues to grow, an example for that is adding
warranties and return policies to products.

Product in Nestlé Pure Life

330 ml 600 ml 1.5L

Nestlé Pure Life pays immense attention to purity of the water it delivers to its market as
well as paying attention to its safety to people’s health that’s why it makes sure that every
drop of water comes from a protected deep. There are a variety of sizes for Nestlé bottled
water to suit customers’ need and goes along with different age ranges. There are bottles
of 330ml, another bottle size is 600ml which is mostly used by variety of customers and
large bottles of 1.5L size. The product gives safety to the customer by what’s called “the
click” technique; it is written on the bottle “if it clicks, it’s safe”; meaning that it is
guaranteed that it’s safe, healthy, unpolluted and sealed bottle if the bottle cap clicks
when opening the bottle. Nestlé derive its necessity from the need of pure, quality and
secure water it provides in the market.

Conclusion
Nestlé Pure Life delivers exactly what the market needs from the water drinking
purposes. It delivers purity, quality, safety and healthy life. However, as the competition
in the market grows, it has to innovate new types of products such as flavored water as
the market already have this kind of flavored bottle. Another misstep is overlooking the
production of two types of larger bottles; for cooking purposes and for dispensers which
the Egyptian market is in great need to them and they usually consumes this type of water
bottles from another brand.

4. Price
Academic Explanation

Price is the consideration in terms of money paid by consumers for the bundle of benefits
he/she derives by using the product/ service. Pricing strategy plays a crucial role in the
product success. There are factors taken into account while determining the price of a
product which are the cost, the demand, competition and substitutes and government
regulations.

Product in Nestlé Pure Life

Product pricing for Nestlé Pure Life usually depends, like most companies, on some
pricing objectives like determining the demand, estimating the cost and analyzing
competitors’ costs, prices and offers. NPL offers the same price to distributors, however,
distributors sell the products in different prices including other elements in the pricing
matrix such as the transportation costs and the selling area like the touristic places and
places where there’s no follow up.

Conclusion

Nestlé Pure Life has a good pricing strategy as it takes into consideration the competitors
pricing, the demand and of course the cost of production and all costs incurred. However,
they should have a more strict regulation so as to prevent sellers from changing the prices
in remote places and touristic places as well.

5. Place
Academic Explanation

Place refers to the distribution methods and location used for products or services
to be easily accessible to the target customers. The nature of the product as a
tangible object or a service product dictates how it should be distributed.
There are three types of marketing distribution channels

Selling directly: It is where the producer sells directly to the customers, an

advantage to this type is getting more involved on the market while dealing
directly with the customer it makes you easily adapt to change customers so you
can easily adapt to the changes. Another advantage is controlling the product’s
pricing and the methods of distribution that includes door-to-door, retail, e-
commerce, mail order, or on-site.

Selling Through a Reseller: This is for the sake of a wider distribution for your
product by selling products through a third party who will then resell the product
to customers. It has two advantages; which are the reduction of the pressure of
distribution system running and the reduction of storage space. This distribution
strategy also reduces the pressure of running a distribution system. However, it
makes the producer loses a part of the communication with customers.

Market Coverage: Market coverage refers to how wide or varied the producer
wants the products to be distributed. This applies to either direct sales or through
intermediaries. There are three types of market coverage:
1- Intensive distribution
This ensures the widest distribution possible for the product or service; selling
products in as many locations or markets as possible. Reducing prices a little bit
and it is used in large businesses And oftentimes, you need to lower your prices.

2- Selective distribution
Selling only to a few selected businesses or customers. It is used when resellers
are dealing with high quality products.

3- Exclusive distribution
This is where the producer can be the only supplier and the distribution channel is
the only reseller. This gives a prestigious image to the product.

Place in Nestlé Pure Life

NPL follows intensive distribution channel as it delivers its products on time with
suitable quantity in the right place at reasonable prices.
Producer —> wholesalers —> retailers—> customer
It is considered a fast moving consumer goods that’s why this is the best channel
of marketing distribution for NPL.

NPL sells to wholesalers which sell to hypermarkets, supermarkets, markets,

small shops, hotels and all kinds of institutions that may need to buy this product
for their clients or employees.

Conclusion
As a result of following the type of intensive distribution market, NPL products
are available and all customers can have them at any time with reasonable prices;
which gives easy accessibility to the products.

6. Promotion
Academic Explanation

Promotion is the marketing term referring to the all marketing communications

activities and it includes advertising, public relations, sales promotions, personal
selling, social media and sponsorship.

Marketing consultants and professors see that promotion shall be integrated into
the business communication message itself which might be called Integrated
Marketing. It integrates a clear and consistent message of the company’s brand,
product and customers.

Types of Promotion

Advertising which is the brand and the product promotions communication

through mass media.

Public Relations refer to sustaining a good relationship between the company and
the public. It usually deals with the media channels as well.

Sales Promotion Promotions designed to create a short term increase in sales, for
example discounts on selected products.

Personal selling which refers to the interactive selling between the company’s
representative and the customer.

Social Media one of the fast growing promotion channels which means using
different types of social media channels like Twitter and Facebook to engage
people socially with the company and the product.

Sponsorship refers to paying an amount to a specialized company to market the

company’s products and use its logo.

Promotions in Nestlé Pure Life

Nestlé Pure Life uses a promotional mix including nearly all types of promotions.

Social Media : NPL disseminates all kinds of promotions through social media. A
near example is the competition NPL Egypt does through FB which is about taking
a photo with a water bottle of NPL and post it on social media channel so you can
win a trip to Africa park and Ski Egypt; which helped growing the interaction with
 people and increasing sales at the same time.

Sponsorship NPL participates or pays for sponsorships in events where they see
essential for water products to exist for example sporting events.
Advertising to NPL is what increased its sales in the last period of time due the
branding to its products through safety and quality.

Regarding the personal selling, NPL often uses malls and booths at events to
market for its products.

Conclusion
NPL has a promotional mix that exists only on large successful companies using
all its product traits for the sake of branding. In Egypt, NPL is one of the safest and
purest water products to all customers.

7. People
Academic Explanation
Hiring and training the right people to provide more ci need to hire and train the right
people to provide superior and consistent customer service. Employees need to be trained
on customer more consistent and developed customer, It is one of the powerful tools of
the marketing mix as the work force is the most important advantage in any company.

People in Nestlé Pure Life

Nestlé Pure Life best exploits this component of the marketing mixes; setting suitable
criteria in relation to each position in the company. NPL also takes care of the image of
its employees or representatives when dealing with customers in any distribution channel
or through media and dealing with the public. Not only that but it helps in the area of
training and development whether for its employees or trainees from Egypt’s university.
NPL Egypt has posted on Twitter that hat it is committed to supporting youth’s transition
from education to work through providing internship and apprenticeship opportunities
serving the Egyptian youth community transferring smoothly to the market place.

Conclusion

Nestlé Pure Life in Egypt has proved that people component in the marketing mix is one
of the powerful marketing tools. The growing development of human resources in NPL
assures the responsibility of the company towards the community and at the same time
helps engage people within the company environment.

8. Physical Evidence
Academic Explanation
Marketing 91 website defines it as “Physical evidence comprises of the elements which
are incorporated into a service to make it tangible and somewhat measurable”.
The role of the marketer is to design and implement such tangible evidence. Physical
evidence is the material part of a service that helps delivering the customer satisfaction
when the company is providing a service.

Examples for physical evidence is packaging, internet/web pages, paperwork (such as

invoices, tickets and dispatch notes), brochures, furnishings, signage (such as those on
aircraft and vehicles),uniforms and employee dress, business cards and mailboxes.

Physical Evidence in Nestlé Pure Life

NPL in Egypt pays great attention to any printed brochures, business cards presented at
their booths or places where its representatives exist, also the uniform of its
representatives always gives a prestigious image of the company.

Conclusion
 NPL efficiently uses the physical evidence as a tool which is clear in the photos attached
as well as the personal experience I had with the compaby’s representatives in one of the
most famous hyper markets.

9. Process
Academic Explanation
It is the execution of services and the process of production of the company’s products.
The advancement of technology can help companies to in-place a process that minimize
the cost of product and service and at the same time delivers value to people.

Physical Evidence in Nestlé Pure Life

The following figure is the best illustration to the company’s process and it is the core
asset to delivering purity and security in a water bottle to the customer.

Conclusion
Inspection, filtration, monitoring and control are the best indicators to delivering a
successful safe product to the public. Indeed, Nestlé Pure Life succeeded to deliver safety
and quality to its market especially through its process and other marketing mix
components.

10. References
1. https://www.nestle.com.eg/en/aboutus/ourbrands
2. https://www.nestle.com.eg/en/aboutus/history/nestle-egypt-history#tab-1975
3. https://www.nestle.com.eg/en/brands/bottledwater
4. Armstrong and Kotler principles of Marketing, 8 th Edition
5. https://www.forbes.com/sites/forbesagencycouncil/2018/01/03/evolution-of-the-four-
ps-revisiting-the-marketing-mix/#6513fd721120
6. https://www.academia.edu/9302613/Philip_Kotler_Gary_Armstrong_Principles_of_Mar
keting_14th_Edition_2011
7. https://www.nestlepurelife.com/eg/en/products
8. https://twitter.com/nestleegypt?lang=ar
9. http://download.nos.org/srsec319new/319EL20.pdf
10. https://studymoose.com/marketing-mix-4ps-strategy-of-nestle-pure-life-npl-essay \
11. https://www.marketingteacher.com/physical-evidence-marketing-mix/
12. https://www.marketingteacher.com/physical-evidence-marketing-mix/