Assignment # 4

Subject: Marketing Management

Topic: Price Sensitivity

Submitted To: Mr. Khalid Mehmood

Submitted By: Zaka-Ul-Hassan Fa08-BBA-040

Ammar Ashraf Fa08-BBA-039

Date of Submission
22/12/2010
Price Sensitivity of NESTLÉ Pure Life Water

Price sensitivity:
the extent to which price is an important criterion in the customer's decision making
process; thus a price sensitive customer is likely to notice a price rise and switch to a
cheaper brand.

A product marketing manager planning to alter the prices by knowing the price
sensitivity of current and potential customers is critical.

Launching of Nestlé Pure Life:

The launch of Nestlé Pure Life in December 1998
was a truly historic event. This marks the Nestlé
Pure Life’s entry into the country’s fast growing
water market. At the same time Pakistan became the
first country where Nestlé launched the new brand.

Nestlé today has some of the best water brands in the

world. Nestlé Water is best, as their specialty is
water.

Customer Acknowledgement:
Nestlé Pure Life is a premium drinking water, produced to the highest standards of safety
and purity. It is ideally balanced with essential minerals.

Pakistan Market Hold:

The brand has revolutionized the Pakistani market by tapping the real consumer need for
pure, healthy, and safe water and has successfully dominated a key strategic business.

Capitalizing on its strong brand recognition, aggressive pricing and supported by a strong
marketing campaign, Nestlé Pure Life has made very strong inroads into the water market
in Pakistan. Nestlé PURE LIFE is destined to become the world’s leading and most
widely distributed brand by 2010.

Pakistan Market Share:

Huge of money is being spent and aggressive marketing strategies have been
implemented for the Mineral water to build and maintain market share. Nestlé Pure Life
has captured 50 % of the bottled-water market in Pakistan since it was introduced in
1998. Its approximate sales for 1999 are RS.70, 401,000.

Pricing Strategy:
Nestlé pure life is following brand pricing through which it provides functional and
psychological satisfaction to its target customer. The pricing strategy of Nestlé Pure Life
is market skimming.

As well as being pure, safe, healthy water, Nestlé Pure Life is affordable and convenient.
No matter what the format, Nestlé Pure Life is sold consistently at popular prices
affordable for a large portion of the population.

Conclusion:
It has been notified that Nestlé customers are fewer prices sensitive because they know
the facility providing by the company is good enough for them and also in the market
there is no such a producer who cares for the customer empathy. The company’s product
mangers are well aware about the product pricing in the country.