TERM PAPER

MARKETTING PLANNING OF

AHSANULLAH UNIVERSITY OF SCIENCE AND TECHNOLOGY

TERM PAPER
MARKETING PLANNIG OF NESTLE

Submitted To:
Pro ! Sir"#udd"u$" S%"%ee& De"&' F"(u$t) o *u+i&e++ , So(i"$ S(ie&(e

Submitted *):
-e+mi& A.ter -ut%i /ID &o! 01!10!12!1213 F"r"% T"+&eem /ID &o! 01!10!12!1243 S%"ri." N"%id /ID &o! 01!10!12!1453

D"te o Submi++io&:12 !12!2102

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2nd Feb, 2012 Pro ! Sir"#udd"u$" S%"%ee& De"&' F"(u$t) o *u+i&e++ "&d So(i"$ S(ie&(e+ A%+"&u$$"% U&i6er+it) o S(ie&(e "&d Te(%&o$o7)! Dear Sir, I would like to thank you for giving us a term paper to prepare a realistic paper work about Marketing Plan of an organi ation and we chose Nestle! "ithout your help and advice it was #uite impossible for us to prepare this term Paper! $our help and advice make us work much easier! "hile preparing this term Paper we got to know various things of the marketing plan of an organi ation which have increased our analytical skills! %hough, as a member of group, I&m proud to say that our term Paper is a result of team work and we are really grateful to you for giving a chance to form our group ' charging up our team spirit! I will be indebted to you if you have a look on our term Paper and consider our faults and let us know what will be the way to make it more effective! %hank you! Sincerely, (n behalf of group Sharika )ahid ID* 1+!+1!+2!+,-

Acknowledgement
We would like to give thanks to those people who helped us to prepare this report and we are very much grateful to them for their cordial assistance, helpful co-operation and essential suggestion. t first we would like to e!press deep gratitude to our honorable course instructor "rof. #ira$uddaula #haheen, %ean, Faculty of &usiness and #ocial #cience, hsanullah 'niversity of #cience and (echnology, for his sincere guideline and valuable remarks, thoughtful comments and essential suggestions. )e inspired us and gave us encouragement to complete this report. We would also like to e!press our gratitude to *oasser grateful to him. hmed, *arketing +fficer of

,estle who helped us to collect information for preparing our term paper. We are really

Origin of the Report

Pro ! Sir"#udd"u$" S%"%ee&' De"&' F"(u$t) o *u+i&e++ "&d So(i"$ S(ie&(e' A%+"&u$$"% U&i6er+it) o S(ie&(e , Te(%&o$o7)' the honorable course instructors of -&& -221 *arketing *anagement., assigned us to prepare a term paper about the /*arketing "lanning of /Ne+t$e0. (he date of submission of this report is 2nd February of 2012.

Objective
(he primary ob$ectives of preparing the report are1 (o create a knowledge base for future as it is an outcome of working in an organi2ation for real

(he secondary or business ob$ectives of this report are1 (o fulfill a partial re3uirement of completing our course. (o represent the brand activation activities which are designed to increase the brand image (o present an improve and increase of brand awareness through product sampling (o signify how an organi2ation helps its consumers try products which they haven-t tried before4 thus increasing scopes for branding through product sampling (o indicate how consumer sales gets influenced through activation

Methodology
#ources of collecting data1 (he report is based on data 5 information, which have been collected from various sources. (hey are stated below1 "3 Prim"r) +our(e - 6nterview - #earch through the internet b3 Se(o&d"r) +our(e+ - 7arious books related with *arketing. -*ethod of 8ollection %ata

Limitation
(he data collection was time consuming as timeline was shorter but the data collection process re3uired a huge amount of time. %ue to the company policy of ,estle &angladesh 9imited, few confidential but important data might not be presented which could actually precise the report accordingly.

T"b$e O Co&te&t+

0! 2! 4! ;! =! >! 9! :! 5! 01! 00! 02! 04! 0;! 0=! 0>! 09! 0:! 05! 21! 20! 22! 24!

E8e(uti6e Summ"r) About Ne+t$e Ne+t$e i& *"&7$"de+% M"r.et Summ"r) Ob#e(ti6e Ke) to Su((e++ M"r.eti&7 Str"te7) M"r.eti&7 Demo7r"?%i(+ M"r.et Need+ M"r.et Tre&d+ M"r.et Gro@t% SAOT A&"$)+i+ Com?etitio& Produ(t O eri&7 Mi++io& o t%e (om?"&) T"r7et M"r.et Po+itio&i&7 M"r.eti&7 Mi8 M"r.et Re+e"r(% *re".e6e& A&"$)+i+ S"$e+ Fore("+ti&7 Co&($u+io& *ib$io7r"?%)

9 : 5 01<00 00 02 04 04<0; 0;<0= 0=<0> 0><09 09<05 05<21 20<24 2; 2; 2= 2=<25 41 41<40 42<4; 4= 4>

Executive Summary
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(he term paper is prepared for giving us a basic idea of marketing plan applied by ,estle &angladesh 9td. *arketing is the process of planning and e!ecuting the conception, pricing, promotion and distribution of ideas, goods and services to create e!changes that satisfy individual and organi2ational goals. While strategy is the action plan to do something and hence, *arketing #trategy is the managerial process of developing and maintaining a viable fit between the organi2ation.s ob$ectives, skills and resources and its changing market opportunities. (he aim of marketing strategy is to shape the company.s business and products so that they yield targeted profit growth. (he term paper also very useful to have a practical idea and over viewing, product positioning, the marketing sector also forecast on current mission, vision, ob$ective goals. Find out their strength, weakness, and opportunities, threats defining their market segmentation, target market and key marketing areas. (he consumers of ,estle &angladesh 9td show interest on ,estle products because of trust on 3uality of ,estle, at the heart of which there are 3ualitative products and its long term commitment to deliver better products to consumer. (oday ,estl: &angladesh 9td. is a strongly positioned organi2ation. (he 8ompany will continue to grow through our policy of constant innovation and renovation, concentrating on our core competencies and our commitment to high 3uality, with the aim of providing the best 3uality food to the people of &angladesh.

About Nestle
,estl: with head3uarters in 7evey, #wit2erland was founded in 1;<< by )enri ,estl: and is today the world-s biggest multinational food and beverage company. #ales at the end of 200= were 8)F >1 bn, with a net profit 8)F ; bn. ,estl: employs around 2=0,000 people and has factories or operations in almost every country in the world. (he principal shareholder of ,estl: is 9iliane &ettencourt, the world-s wealthiest woman. (he company-s strategy is guided by several fundamental principles. ,estl:-s e!isting products grow through innovation and renovation while maintaining a balance in geographic activities and product lines. 9ong-term potential is never sacrificed for shortterm performance. (he company-s priority is to bring the best and most relevant products to people, wherever they are, whatever their needs are all through their lives. ,estl: is the world-s largest food group, not only in terms of its sales but also in terms of its product range and its geographical presence. ,estl: covers nearly every field of nutrition1 infant formula, milk products, chocolate and confectionery, instant coffee, ice-cream, culinary products, fro2en ready-made meals, mineral water etc. ,estle is also ma$or producer of pet food. 6n most of these product groups and in most markets, ,estl: is the leader or at least a strong number two. ,estl: is a much focused company with more than >? percent of the sales coming from the food and beverage sector. *any of their brand names are well known worldwide. ,escafe, ,ido, *aggi, "olo, #marties, *ilo, 9actogen, 8erelac, "errier, Friskies, @it @at, 8runch etc. #ome of their products have been broken records like1 A,000 cups of ,escafe are consumed every second and @it @at merited an entry in the Buinness &ook of World Cecords as the world-s best-selling chocolate is @it @at.

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Nestle In Bangladesh
,estl: &angladesh 9imited started its first commercial production in &angladesh in 1>>?4 in 1>>; ,estl: #. . took over the remaining ?0D share from ,estl:.s local partner when ,estl: &angladesh became a fully owned subsidiary of ,estl: #. . (he managing %irector of ,estl: &angladesh 9td. is *r. ldo #iegrist. (he 8ompany.s strategy is guided by several fundamental principles. ,estl:.s e!isting products grow through innovation and renovation while maintaining a balance in geographic activities and product lines. 9ong-term potential is never sacrificed for shortterm performance. (he 8ompany.s priority is to bring the best and most relevant products to people, wherever they are, whatever their needs, throughout their lives.E2F ,estl: &angladesh.s vision is to be recogni2ed as the most successful food and drink company in &angladesh, generating sustainable, profitable growth and continuously improving results to the benefits of the shareholders and employees. (he corporate head office of ,estl: &angladesh 9td. is situated in one of the finest locales of &angladesh, Bulshan. (he address is the following1 Bulshan venue, %haka-1212 (el1 02->;;2G=>-<= Fa!1 02-;;220A= 6ts factory is situated at #ripur, which is == km north of %haka. (he factory produces instant noodles, cereals and repacked milks, soups, beverages and infant nutrition products. (oday ,estl: &angladesh 9td. is a strongly positioned organi2ation. With their policy ,estl: is confident that it will continue to grow in terms of integrated development, concentrating on their core competencies and their commitment to high 3uality. ,estle also aims of providing the best 3uality foods to the people of &angladesh.
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Market Summary
Form of voluntary business principles is beneficial in order to ensure that the highest standards are met throughout the organi2ation. H ,estl: is conscious of the fact that the success of a corporation is a reflection of the professionalism, conduct and the responsible attitude of its management and employees. (herefore recruitment of the right people and ongoing training and development are crucial. H ,estl: continues to maintain its commitment to follow and respect all applicablelocal laws in each of its markets. #ince )enri ,estl: developed the first milk food for infants in 1;<G, and saved the life of a neighbor.s child, the ,estl: 8ompany has aimed to build a business based on sound human values and principles. While ,estl: 8orporate &usiness "rinciples will continue to evolve and adapt to a changing world, its basic foundation is unchanged from the time of the origins of the 8ompany, and reflects the basic ideas of fairness, honesty, and a general concern for people. ,estl: is committed to the following &usiness "rinciples in all countries, taking into account local legislation, cultural and religious practices1 H ,estl:.s business ob$ective is to manufacture and market the 8ompany.s productsin such a way as to create value that can be sustained over the long term for shareholders, employees, consumers, and business partners. H ,estl: does not favor shortterm profit at the e!pense of successful long-term business development.

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H ,estl: recogni2es that its consumers have a sincere and legitimate interest in the behavi or, beliefs and actions of the 8ompany behind brands in which they place their trust and that without its consumers the 8ompany would not e!ist. H ,estl: believes that, as a general rule, legislation is the most effective safe guard of

responsible conduct, although in certain areas, additional guidance to staff in the office.

Objectives
M"r.eti&7 Ob#e(ti6e: ,estles marketing ob$ective at all levels is to manufacture and the market the company.s product in such a way as to create customer life time value so that it can be sustained over the long term for shareholders, employees, consumers, business partners, and the large number of national economies in which ,estl: operates. chievements ,estl: &angladesh 9imited has succeeded immensely in establishing itself as a high 3uality food industry in &angladesh. s suggested by )asan *ehdi, the marketing officer of ,estl: following are the prime achievements1 First to launch high 3uality infant nutrition products in &angladesh. First to produce instant noodles under local manufacturing in &angladesh. ,estl: firmly emphasi2es on real internal growth and it is growing from year to year. ,estle is also proud of the fact that its growth of sales is sustainable, is increasing always. 6t measures its achievements in terms of its mass profit and ac3uiring e3uity in the market. 6ts main purpose is customer acknowledgement, the fact that consumers reali2e that nestle is all about /3uality0. (he growth of sales had never degraded for ,estl:. Fi&"&(i"$ Ob#e(ti6e: (he main financial ob$ective of ,estle is13 6ncrease in profit margin by 1 percent per 3uarter through efficiency and economy of sales gains. 2I double to triple digit growth rate for the first three years.
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Keys to Success
,estles key factors are giving in below1 #trong &rand Celationship with consumer

Cesearch and %evelopment 6nnovation and Cenovation "roduct vaibility &uilding relations with medical and scientific community 6n light of ,estl: &angladesh 9td., we have tried to analy2e the following components of marketing strategy through different theories and applications. T%ere "re "$+o +ome ot%er m"#or "(tor+:

So(i"$:
,estl: makes an effort to integrate itself as much as possible into the cultural and social values of the different countries. %uring operation in &angladesh ,estl: has launched two products which e!plains how ,estl: values social and cultural factors, Cecently ,estl: &angladesh has launched /)alim *i!0 which was meant to be distributed only in &angladesh. nother e!ample is /*aggi ,oodles0 itself. 6t has a very big market both in *alaysia and &angladesh but the one distributed in &angladesh has an added taste that is, it is spicier than the one in *alaysia. (his has been done to match the taste buds of &angladeshi consumers.

Et%i("$:
lthough ,estl: faces ethical dilemmas in commerciali2ation of its products, it does not consider its high price to be an ethical crisis. (his is because they are not ready to compromise their 3uality in order to make their product widely available to all.

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Marketing Strategy
,estl: is more people, product and brand oriented than system oriented. ,estl: favors long-term successful business development and even to greater e!tent, customer life-time value. t the same time ,estl: does not lose sight of the necessity to improve in terms of 3uality, price and distribution. )owever, ,estl: remain conscious of satisfying the wants needs and demands of its consumers. 6t is also aware of the need to generate a sound profit annually. ,estl: seeks to earn consumer.s confidence, loyalty and preference and anticipate their demands through innovation and renovations. (herefore ,estl: is driven by an acute sense of performance adhering to 3uality and customer satisfaction. ,estl: is as decentrali2ed as possible within its marketing strategic definitions re3uiring increasing fle!ibility. ,estl: is always committed to the concept of continuous improvement of its activities and customer satisfaction through market segmentation, positioning and target marketing. (he effective formulation of their marketing strategy depends on the proper match between the three key elements1 Co&+umer Bu"$it) Com?etitio&! +ne thing to be mentioned is that the match between consumer and 3uality is most important for ,estl:. &esides there are some other concerns that effect the marketing strategy. (his concerns are where to compete, how to compete and when to compete. ,estle is able to address all of the different segments within the market because although each segment is distinct in term of its users and e3uipment, its products are useful to all of the different segments.

Market Demographics
,estl: is targeted towards the consumer market. #o ,estl: food products can be treated as consumer products. (he ma$or factors which play key role in the process of consumer segmentation are1 1I %emographicJ age, income etcI 2I 8onsumption "attern AI #ocial Kconomic factors

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?I &rand 9oyalty "atterns =I "erceptual Factors <I 8ultural Factors "roper consideration of the given factors results in effective consumer segmentation for ,estl:. #ince the product range is e!pensive in &angladesh4 )asan *ehdi, the *arketing +fficer, says, /LLLLLLLLLwe have to concentrate strongly on income of consumers0.

Market Needs
,estle is committed to offering consumers high 3uality food products that are safe, tasty and affordable. (he main theme of ,estle / Good Food' Good Li eC is a symbol of this commitment. (he company seeks to fulfill the following benefits that are important to its consumer. Bu"$it) (r" t+m"&+%i? Muality is the foundation of ,estl:.s success. Kvery day, millions of people all over the world show their confidence in ,estl: by choosing their products. (his confidence is based on their 3uality image and a reputation for high standards that has been built up over many years. Kvery product on the shelf, every service and every customer contact helps to shape this image. ,estl: brand name on a product is a promise to the customer that it is safe to consume, that it complies with all regulations and that it meets high standards of 3uality. 8ustomers e!pect them to keep this promise every time. 'nder no circumstances will they compromise on the safety of a product and every effort must be made to avoid ha2ards to health. 9ikewise, compliance with all relevant laws and regulations is a must and is not negotiable. "eople, e3uipment and instruments are made available to ensure safety and conformity of ,estl: products at all times. (he effort is worth it. 8ompanies with high 3uality standards make fewer mistakes, waste less time
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and money and are more productive. (hey also make higher profits. Muality is the ,estl:.s most successful product. 6t is the key to their success, today and tomorrow. Cu+tomer Ser6i(e

,estl: regards its consumers as its most valuable asset involvement at all levels start with open communication whether it deals with customer satisfaction or their needs and wants. ,estl: recogni2es that its consumers have a sincere and loyal interest in the behavior, beliefs, and actions of the company behind brands in which they place their trust. With it consumers the company would not e!ist. ,estl: satisfies consumers in many countries and cultures throughout the world. ccording to the *arketing officer ,estle &angladesh 9td, customer satisfaction varies from one aspect to another. 6n terms of product delivery consumers do not give similar responses. )e e!plained with the simple e!ample, ,escafe for some is refreshment, for others it is relief. t the end of the day, ,estl: consumer are 100D satisfied with the high 3uality of ,estl: products.

Market Trends
,estle will distinguish itself by marketing products not previously available in food market. 6t also believes in maintaining regular contact with the consumers. (his applies both to how they present their products and to how they address their consumers. 3uestions and concerns. When )enri ,estl: prepared his first bo!es of infant formula for sale, he put his address on the packages so people would know where to go if they had 3uestions. (oday, the 8onsumer Celationship "anel with the words /(alk to ,estl:0 e!presses the same commitment. (his is why they have a worldwide ,estl: 8onsumer #ervices network devoted to caring for their consumers. ,estl:.s people have e!pertise in a wide range of areas such as nutrition, food science, food safety and culinary e!pertise. (hey provide the prompt, efficient and high 3uality service that consumers e!pect from ,estl:. 6n addition, the e!pertise teaches them talk with consumers and above all, to listen. 9istening helps them to understand what people want. ,estl: uses the insights gained from relationships with consumers to drive product development. ,estl: care for
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,estl:.s consumers because its success depends on meeting their needs and e!pectations. (hrough listening and understanding, it can make products that they will want to use all through their lives. lthough ,estl: is very conscious of its role in communicating s noted their marketing officer, /For ,estl:, our consumers ".+.-&o! had been assigned where responsibility to consumers, ,estl: in &angladesh does not really perform much consumer communication. are our distributors0. ,estl: has a separate department designated as /8onsumer Celation %epartment0 where the purpose is served. consumers can send complaints, mails or any en3uiries directly in order to reach ,estl:. (his can also be termed as /"ost "urchase #ervice0. 8onsumer communication is not much practiced in &angladesh because at the moment, ,estl: does not have any organi2ed internal database of its consumers. )ence, it can be said that ,estl: hardly takes any initiatives in case of consumer communication. )owever, for specific brands, such as *ilo, ,estl: &angladesh has an organi2ed database of 1000 consumers who are the core that is final consumers of ,estl:. Whenever, there are any upcoming new products, ,estl: sends these loyal consumers newsletters, leaflets, free samples and even feedback 3uestionnaires. (his is the only consumer communication that ,estl: does in &angladesh4 also consider to be %irect *arketing. For any other products ,estl: never performs consumer communication. ,estle believe whoever is loyal4 ,estl: should do their best to retain their loyalty because if this loyal consumers become disloyal their word-of mouth may contaminate other eager consumers. #o, ,estl: emphasi2es more on retaining loyalty rather than attracting new consumers.

Market Growth
,estle has recorded an increase in sales for the last nine months of 2011, driven by double-digit organic growth in emerging markets. ,estle plc, maker of nutritional, health and wellness product recently made public its first 3uarter JM1I forecast result 2012 on the floor of the ,igerian #tock K!change, showing that it is eyeing ,2A billion turnover, its First 3uarter, 2012.

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(he company also e!pects a ,A.< billion profit before ta!, $ust as it e!pects a ,2.G billion profit after ta! in the same period of 2012. close look at the company.s most recent result, show that the company made a ,G0 billion turnover in MA 2011, compared to the ,=G billion, it made in the corresponding period of 2010, indicating a significant 2? percent rise. s part of efforts to compete favorably a position of its growth, the company has a plan of opening new branches throughout the country. 6t is a key to ,estl:.s growth in &angladesh will be initially dedicated to the productions of *aggi products. ,estl: &angladesh.s role is to be the largest culinary manufacturing operation on the country. "roducts adapted to meet the specific re3uirements of emerging consumers in terms of price, accessibility, format and nutritional benefits and they are a key driver for the future growth of ,estl:.s operations in &angladesh.. *any of the *aggi products in &angladesh are iodine fortified in order to help combat iodine deficiencies among the local population. 6n a tough environment, ,estle continued to build their capabilities and positions for the future while maintaining strong growth across regions and categories. (he constant renovation of their e!isting product portfolio together with their strong pipeline of gamechanging innovations resulted in many market share gains. high rate of innovation also re3uires significant consumer-facing marketing support. For the year as a whole, in spite of input cost pressures, they e!pect to slightly over-perform against our long-term organic growth range of =-<D and continue to strive for a margin improvement in constant currencies0.

Swot Analysis of Nestle

STRENGTHS <<<<<<<<<<<<<<<<< TO *UILD ON AEAKNESESS <<<<<<<<<<<<<<<<< TO COVE ON OPPORTUNITIES<<<<<<<<<<<<<<<TOCAPTURE THREATS<<<<<<<<<<<<<<<<<<<<<<<<<<TO DEFEND ON
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STRENGTHS (he greatest strength of nestle is that it includes a culture that is team focused and an open door policy. ,estle focus on collectivism and performance orientation attitude which encourages employees to work harder. nother thing is high-level of market share and that people all over the world trust and recogni2es ,estle as a big brand name. #trength is that people trust on ,estle. 6t looks at achieving higher volumes by renovating e!isting products and innovating new products. #trength is that they are low cost operators which allow them to not only beat competition but also edging ahead operating e!cellence, innovation, renovation, product availability and communication are ma$or strengths. 6( is an important aspect that people all around the world are becoming more conscious about health, that.s why they prefer ,estle. (he only brand in the area maintaining its 3uality and taste and having the same impact on its consumer. Kconomical "ure food in market #trong &rand name

AEAKNESS +ne ma$or weakness of ,estle is that it is entering into markets that are already mature and can give a tough competition to new entrants. ,estle "lain Nogurt has proved to be a ,estle weakness because it has been unable to make its market place in '# . &ut ,estle by analy2ing the sensitive areas can overcome its weaknesses. 8ommunication is week 9ack of awareness

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OPPORTUNITIES ,estle in &angladesh has a great opportunity for e!panding its markets because in &angladesh there is a large ready market of food and beverages due to trends of eating and the increasing .6 t also has opportunities largely in 8hina and 6ndia as well. (hrough proper marketing research ,estle can cash on to these opportunities. 8oncentrating on these areas can increase sales 6ncrease in product line.

THREATS ,estle is facing the threats by worldwide community due to its violation of international marketing standards. *any conferences and campaigns have been held against ,estle in this regard which can damage the name and trust of its customers.

nother threat is due

to the increasing popularity of its competitor +9"KC# in local and international markets. #egments are being shared by competitors 'ncertain condition will effect sale

Competition
,estl: supports free enterprise and therefore competes fairly and ethically and e!pects other company.s right to do so. (he competition structure for ,estl: in &angladesh is very limited whereas it faces bigger challenges in other countries such as 6ndia, china, etc. #till ,estl: tends to face competition in the food market. 6n terms of 3uality and product s3uare is the biggest challenge and threat. "ran is the strong contender in terms of turnover. +ne strong upcoming challenge for ,estl: is &% Foods. When it comes to beverage and drinks ,estl: consider 6spahani and 8oca-cola to be strong players. lthough G0-;0D consumers prefer *aggi noodles, 8oca cola seems to be catching up fast. 6n terms of competitive advantage, 3uality seems to be the foremost tool
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for ,estl:.

lthough ,estl: tends to face criticisms in terms of price and number of

products sold, in comparisons to local competitors, ,estl: intends to abide by their policy which never attempts to compromise 3uality. ,estle live in a competitive world and ,estl: must never forget that its customers have a choice. 6f they are not satisfied with a ,estl: product, they will switch to another brand. 6ts goal, therefore, is to provide superior value in every product category and market sector in which it competes. (he pursuit of highest 3uality at any price is no guarantee for success, nor is a single-minded cost-cutting approach. 9asting competitive advantage is gained from a balanced search for optimal value to customers, by simultaneous improvement of 3uality and reduction of cost. #uccess can never be taken for granted. ,estl: must watch and learn from its competitors. 6f they do something better, ,estl: must improve its own performance. ,estl: can achieve competitive advantage through 3uality.

C%"rt<Com?etitor+ "&d M"r.et S%"re o N*L

)ard work, *otivation, Ceady to accept challenges, giving consumer most preference and no compromising in 3uality have made ,estle superior than its competitors.

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Product Offering
"roduct is something that is offered to a market for attention, ac3uisition, use or consumption that might satisfy a need or want. "roduct is set of tangible and intangible attributes, including packaging, color, price, manufacturing, prestige, retailing, services, etc. which the buyer may accept as offering want is satisfied. ,estl: is offering the products, which comes under the category of fast moving consumer good. ,estl: is committed to offering consumers high-3uality food products that are safe, tasty and affordable. (he ,estl: #eal of Buarantee is a symbol of this commitment.

Curre&t Produ(t $i&e o Ne+t$e

Nutritio& Produ(t+: 8erelac, 9actogen, 8ereal etc.

Per orm"&(e Nutritio&: "ower &ar, ,utren, ,eston D"ir) Produ(t+: ,6%+ Fortified, 2O and AO ,estl: 8orn Flakes, @+@+ 8runch 5 )oney Bold Flakes

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Cu$i&"r) Produ(t+: *aggi ,oodles, *aggi soups.

*e6er"7e Produ(t+: ,escafe 8lassic, ,estea premium ice tea.

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Su7"r "&d C%o(o$"te Co& e(tio&"r): @itakat, "olo, cti-7 etc.

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Mission Of The Company

T%eme: P0Bood Food for Bood 9ife0 Mi++io& St"teme&t: P,estl: is dedicated to providing the best foods to people throughout their day, throughout their lives, throughout the world. With our uni3ue e!perience of anticipating consumers -needs and creating solutions, ,estle contributes to your well-being and enhances your 3uality of life. Vi+io&: ,estl: &angladesh-s vision is to build ,estl: as the respected and trustworthy leading Food, &everage, ,utrition, )ealth and Wellness 8ompany in &angladesh ensuring long term sustainable and profitable growth. (he company is very much focused to ensure that the vision is implemented in every aspect. (he tagline is1 P(o be the very best Food, &everage and ,utrition 8ompany in &angladesh.

Target Market
,estl:.s main focus is the socio-economic class, which is the company wide target. ,estl:.s potential consumers are those who acknowledge that ,estl: is all about 3uality and most importantly those who can afford the products. (he strategy for selecting their target market is the following1 6ncome level J5gt4 10000 (kI Kducation Muality reali2ation "ositioning strategy ,estl:.s positioning strategy comprises of the three steps1 Identifying the right competitive advantage 4hoosing the right competitive advantage Selecting the right competitive advantage

%he company then effectively communicates and delivers the chosen position to the market! )estl5 strongly believes that their products are specific and so are the product benefits! %his, 6asan Mehdi, the marketing officer, termed as 78enefit Positioning!9
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Positioning
fter identifying the segments and then selecting one or more to target, the ,estle 8ompany then must ne!t decide what position to pursue. / position is the way a firm.s product, brand, or organi2ation is viewed relative to the

competition by current and prospective customers.0 When positioning a product the marketer wants to convey benefits most desired by the target market.

Marketing Mix
,estl:.s marketing mi! is comprised of the following approaches to pricing, distribution, advertising and promotion and consumer service.

03 Pri(i&7:
"rice is the amount of money andQor other items with utility needed to ac3uire a product. nd utility is an attribute with potential to satisfy the wants.0 product price influences wages, rent, interests, and profits. #ome prospective customers are interested in low prices, where as another segment is more concerned with other factors, such as service, 3uality, value, and brand image. 8onsumer.s perception of 3uality may be influenced not $ust by price but also by such factors as store reputation and advertising. "ricing ob$ectives may be1

21

Pro it< orie&ted:

(o achieve a target return (o ma!imi2e profit

S"$e+<orie&ted
(o stabili2e prices (o maintain or increase market share

St"tu+ Duo<orie&ted:
(o stabili2e the prices (o meet competition

6n developing a marketing program, management has to decide whether to compete primarily on the basis of price or the non-price elements of the marketing mi!. +ne price strategy1 ,estle is using this special price strategy i.e. o&e<?ri(e +tr"te7) in which the company charges the same price to all similar customers who buy identical 3uantities of a product. &ut for different 3uantities the company is offering different price. Kven prices are set for the ,estle products.

23 Di+tributio&:
%istribution of products from the factory to the customer involves transport and storage. Kfficient management of the distribution system is essential to preserve the safety and 3uality of ,estl:.s products, to ensure a high level of customer service, and to meet its commitment to environmentally sound business practices.

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43 Ad6erti+i&7 "&d Promotio&:

(he 8ompany focuses on its corporate image that /,estl: is all about 3uality0. 6t hardly emphasi2es on promotion and publicity because consumers in &angladesh already know that ensuring product 3uality is what ,estl: focuses, not price. ,estl: mainly focuses the two possible advertising ob$ectives1 6nformative advertising "ersuasive advertising #ince ,estl: is already an acknowledged and 3uality food product company in &angladesh4 it does not emphasi2e much on publicity and promotion. )ere are a few points to ponder about advertising done by ,estl: &angladesh 9td.1 ,estl: cannot advertise for infant milk! *ass advertising is done for new products only dvertising and promotion is done by

product wise1=D of marketing communication budget is spend for publicity *ore indulged into product sampling and test marketing ,estl: had performed test sampling in the year 200A on ,escafe. ,estl: &angladesh 9td. has speciali2ed agencies for their promotional purposes. (hey are *ilo the following1 'nitrend "roduct *aggi name advertising agencies ,escafe 'nitrend J2=DI "rotishobdo"olo

"rotishobdo"olo ,estl: is associated with the following profiles of ma$or media types1 *edium Cesponses ,ewspapers Je.g. "rothom loI #mall "ass along audience, apro! 1 lakh. )igh cost per e!posure.(7 Ceach up to 20 lakh audience &illboards 7ery few 9ocal *aga2ines ,egligible +utdoor -6nternet ,Q(he given table suggests that 8ost per 8ontact is better in television advertisement than in newspapers and other media for ,estl:. ,estl: also believes that television receives better clutter, fleeting, e!posure and a mass audience for promotion, which is only to be considered for ,estl: &angladesh 9td.has main advertising is done on television and to a very little e!tent, newspapers. (he emphasis is on building a corporate image about maintaining their high 3uality. (here are also considerations underway to promote upcoming brands and products to e!tend their promotional activities by putting up more billboards, posters, flyers, and banners. (hey will start internet as their medium from year 200=. (hese decisions are carried out by the marketing department. )ence, ,estl: &angladesh is trying to integrate their promotional activities and have an integrated marketing approach.
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Fig1 "romotional activities of ,estle for brand awareness

;3 Cu+tomer Ser6i(e:
,estle satisfy its consumer throughout the world. ,estle has recogni2ed that its consumer has a sincere and loyal interest in the behavior and belief and action of the company behind brand in which they have placed their trust. Without its consumer, the company would not e!ist. ccording to the marketing officer of ,estle &angladesh 9(% consumer satisfaction varies from one aspect to another. 6n term of product delivery consumer do not give similar responses. )e e!plained with simple e!ample, ,estle for someone is refreshment, for others it is relief. satisfy with ,estle products. t the end of the day, ,estle consumers are 100D

,+

Fi7: Di ere&t Ne+t$e Produ(t+

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Marketing Research
,estle &angladesh 9(% is able to test all of its products with all of its dedicated located all over the country. (hey also maintain a significant research and development budget as a percentage relative to sales to spur future product developments. (he role of the ,estl: Cesearch 8enter is to help fulfill ,estl:Rs vision of Good Food, Good Life, with good food central to a balanced, healthful lifestyle for consumers. @nowledge on ,utrition and )ealth, Food #cience, FoodQ8onsumer 6nteraction and Food Muality and #afety are combined to develop Bood Food as a source of Bood )ealth throughout life. (hanks to the scientists of diverse disciplines working together at the ,estl: Cesearch 8enter, their research discoveries and scientific advances translate into useful applications for the company and a host of innovative products for consumers. ,C8 scientists advocate to be at the forefront of their scientific disciplines, to find the best science anywhere in the world and to apply this science for the health and delight of consumers. (he multifaceted science at ,C8 has an ever-increasing role in improving the 3uality and benefits of food for people everywhere. With a research heritage going back to the very beginnings of food science, ,estl: scientists continue to lead the field in food and nutrition research. Field in food and nutrition research. 9earn more about ,estl: Cesearch 8enter pro$ects and e!ternal collaborations in the t a Blance section.

Break Even Analysis

: company;s break<even point is the amount of sales or revenues that it must generate in order to e#ual its e=penses! In other words, it is the point at which the company neither makes a profit nor suffers a loss! 4alculating the break<even point >through break<even analysis3 can provide a simple, yet powerful
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#uantitative tool for managers! In its simplest form, break<even analysis provides insight into whether or not revenue from a product or service has the ability to cover the relevant costs of production of that product or service! Nestls Managers use this information in making a wide range of business decisions, including setting prices, preparing competitive bids, and applying for loans!

In )estle, they mainly focusess on the variable e=penses to reach the break< even point!

,,

Sales Forecasting
S"$e+ Fore("+t: A forecast of a firm's unit and dollar sales for some future period; it is generally based on recent sales trends plus forecasts of the economic prospects for the nation, region, industry, and so forth. %he Sales ?orecast generally starts with a review of sales during the past five to ten years, e=pressed in a graph such as that in the ?igure below! %he graph could have contained 1+ years of sales data, but )estle focuses on sales figures for the latest five years because the firm;s studies have shown that its future growth is more closely related to recent events than to the distant past! Sales for 2+11are forecasted to rise 1+@ above the 2+1+levelA the 1+@ growth is the >appro=imate3 average growth between 2++0and 2+1+!
Ne+t$e +"$e+ ?rodu(t +"$e+ i& Mi$$io&+ o E

? 000 A000 2000 1000 0 200= 200<

2011

200G

200;

200>

2010

2011

2012

From the sales forecasting 8hart we can say that, ,estle had its ups and downs during the period from 200=to 20116n 200=, ,estle resulted in low production, which caused sales to fall below the level.. (hen, a bumper crop in 2000 pushed sales up by 1= percent, an unusually high growth rate for a mature food processor. &ased on a simple growth analysis, ,estl:.s forecasters determined that the average annual growth rate in sales over the past five years was forecast >.1 percent. +n the basis of this historical sales trend, on planned new-product introductions, and on ,estle4 forecast for the economy, the firmRs planning committee pro$ects a 10 percent sales growth rate during 2010, to sales of SA,A00 million. )ere are some of the factors ,estle considered in developing its sales1 1. ,estle Food "roducts is divided into five divisions1 ,utrition "roducts, %airy "roduct, 8ulinary "roducts, beverage products, #ugar and 8hocolate 8onfectionary. Browth is seldom the same for each of the divisions, so to begin the forecasting process, divi,.

sional pro$ections are made on the basis of historical growth, and then the divisional forecasts are combined to produce a Tfirst appro!imationT corporate sales forecast. 2. A. ,e!t, the level of economic activity in each of the companyRs marketing areas is forecasted. ,estl:.s planning committee also looks at the firmRs probable market share in each distribution territory. 8onsideration is given to such factors as the firmRs production and distribution capacity, its competitorsR capacities, new-product introductions that are planned by ,estle or its competitors, and potential changes in shelf-space allocations, which are vital for food sales. "ricing strategies are also considered-for e!ample, does the company have plans to raise prices to boost margins, or to lower prices to increase market share and take advantage of economies of scaleU +bviously, such factors could greatly affect future sales. ?. ,estl:.s foreign sales present uni3ue forecasting problems. 6n particular, its planners must consider how e!change rate fluctuations would affect sales. ,estle must also consider the effects of trade agreements, governmental policies, and the like. =. ,estl:.s planners must also consider the effects of inflation on prices. +ver the ne!t five years, the inflation rate for food products is assumed by ,estle to average A to ? percent, and ,estle plans to increase prices, on average, by a like amount. 6n addition, the firm e!pects to e!pand its market share in certain products, resulting in a ? percent growth rate in unit sales. (he combination of unit sales growth and increases in sales prices has resulted in historical revenue growth rates in the ; to 10 percent range, and this same situation is e!pected in the future. <. G. dvertising campaigns, promotional discounts, credit terms, and the like also affect sales, so probable developments for these items are also factored in. Forecasts are made for each division, both in the aggregate and on an individual product basis. (he individual product sales forecasts are summed, and this sum is compared with the aggregated divisionQ forecasts. %ifferences are reconciled, and the end result is a sales forecast for the company as a whole but with breakdowns by the three divisions and by individual products. 6f the sales forecast is off, the conse3uences can be serious. First, if the market e!pands more than ,estle has geared up for, the company will not be able to meet
,/

demand. 6ts customers will end up buying competitorsR products, and ,estle will lose market share. +n the other hand, if its pro$ections are overly optimistic, ,estle could end up with too much plant, e3uipment, and inventory. (his would mean low turnover ratios, high costs for depreciation and storage, and write-offs of spoiled inventory. ll of this would result in low profits, a low rate of return on e3uity, and a depressed stock price. 6f ,estle had financed an unnecessary e!pansion with debt, high interest charges would compound its problems. (hus, an accurate sales forecast is critical to the firmRs wellbeing!

,0

Conclusion
(his is competitive world and must never forget that customers have a choice. 6f they are not satisfied with a ,estl: "ure 9ife, they will switch to another brand. (he pursuit of highest 3uality at any price is no guarantee for success, nor is a single-minded cost-cutting approach. 9asting competitive advantage is gained from a balanced search for optimal value to customers, by simultaneous improvement of 3uality and reduction cost. #uccess can never be taken For granted. ,estl: must watch and learn from its competitors. 6f they do something better, ,estle must improve its own performance. ,estle can achieve competitive advantage through Muality. "rogress is followed by listening to ,estle customers and by measuring its works performance. #hortcomings and mistakes must be analy2ed and corrected. "roblems must be anticipated and prevented before they occur. ,estle also must identify and take advantage of opportunities. (o stand still is to fall behind. #o ,estle must strive for continuous improvement in every area. 6t is through many small improvements as well as through ma$or breakthroughs that ,estle will achieve e!cellence. We have observed from our e!tensive hard-work to compile these pages and after visiting the organi2ation that the company is eager to serve consumers at its every possible level, consumer services department is the evidence of such a pursuit from the organi2ation point of view. "resently the company is market leader in its category but it shouldn.t take it as a complacent attitude rather capitali2e on its good brand e3uity and to improve its 3uality of product to reap not only more profits for the shareholder but also serve the humanity by providing them healthful water which in other way a noble 5 sacred $ob. (he company can fulfill this $ob by having such a spirit following it religiously by incorporating it all the marketing strategies.
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Bibliography
1I "hilip @otler, @evin 9ane @eller, *arketing *anagement 12e 2I ,estle *anagement Ceport 200> AI ,estle #ustainability Ceview ?I ,estle "eople %evelopment Ceview =I 8orporate &usiness "rinciples <I ,estle "rinciple of *arketing GI (he nestle "olicy on Knvironment ;I www.nestle.com

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