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American International University-Bangladesh (AIUB

)

Brand Strategy
ON

‘Apple Toffee’
(A product of Nestlé Bangladesh Ltd)
PREPARED FOR: Ehsanul H Chaudhury American International University – Bangladesh (AIUB)

PIPLU BARUA

PREPARED BY

ID: 08-92417-2

Date of submission: March 09, 2008

Table of Contents Subject Executive Summary Page I

1

Target Market Segment Market Needs SWOT Analysis Competition Marketing Strategy Positioning Marketing Mix Strategy: PRODUCT Marketing Mix Strategy: PRICE Marketing Mix Strategy: PLACE Marketing Mix Strategy: PROMOTION Marketing Research: Financial Projections Expenses Forecast: Sales Forecast: Break-even Analysis: Implementation Control Conclusion II 1 1 2 2-3 3 4 5 5 5 6 6 6 7 8 8 8 9 10 10 11 11 2 .Acknowledgement Introduction Current Situation (Macro & Micro Environment) Market Summary Target Market.

cereals and repacks milks. with the aim of providing the best quality food to the people of Bangladesh. The candy will be sugarless so it will not be harmful for teeth. and after all it will provide some exceptional tastes which will provide great pleasure. After estimating the cost and sales I can say that it will be profitable.A. profitable growth and continuously improving results to the benefit of shareholders and employees. Otherwise. soups. I have seen that the company has a great opportunity to enter in this business. and which will be work as a breath refresher and which will be work as digester. the current users of Vitamin-C tablets. The company will continue to grow through our policy of constant innovation and renovation. those who have digesting problems. Considering all the possible threats I can suggest the company that it will be profitable to enter this business because there are some positive sides of the product and the company is also strong. There will no chemical color in this candy. Our products will be beneficial for the consumers because it will be not only safe for teeth but also good for teeth. Nestlé S. there is a real need for normal digestion and our product will work as digester. there will have some special ingredients which will provide Vitamin-C. And if we succeed any large company can easily enter this market. that product will be an exclusive product in the market. the factory produces instant noodles.Executive Summary Nestlé Bangladesh Limited started its first commercial production in Bangladesh in 1994. The competition will also high. After analyzing the market demand I have seen that there is a demand in the market for this kind of product. it will fulfill the want of Vitamin-C.A. concentrating on our core competencies and our commitment to high quality. beverages and infant nutrition products. Our factory is situated at Sripur. The target market of that product will be those who think that chocolates are harmful for teeth. It is a high quality candy which will be harmless. Nestlé Bangladesh's vision is to be recognized as the most successful food and drink company in Bangladesh. The product will be a very new product and there is chance of rejection by the market. In that product. generating sustainable. The company wants to launch a new type of candy in the market. and the current users of the candy. So definitely. the current users of fresh breathing tablets or candy. it will work as mouth refresher. Today Nestlé Bangladesh Ltd. In 1998. So the higher authority should consider this marketing plan. is a strongly positioned organization. It is totally different from the traditional candies. 55 km north of Dhaka. ACKNOWLEDGEMENT 3 . there are a few risk involved this business. took over the remaining 40% share from our local partner when Nestlé Bangladesh became a fully owned subsidiary of Nestlé S. This is mainly a natural or herbal product which has no bad side effect.

One of the most pleasant parts of submitting a project is the opportunity to thank those who have contributed to it. I sincerely acknowledge my debt to our dearest faculty Ehsanul H Chaudhury for his valuable counseling towards the improvements of the project. Without his encouragements this would have been impossible. Unfortunately the list of expression of thanks –no matter how extensive –is always incomplete and inadequate. 4 . These acknowledgements are no exception.

5 . In every toffee. is a strongly positioned organization. its taste will be exclusive and the quality will be high. As the representative of Nestlé Bangladesh Ltd. After all. The brand strategy containing all its elements is presented in the next phases. The product will help as digester. In apple toffee. “Apple Toffee” will contain the flavour of apples so it will be tasteful for everyone.Introduction Today Nestlé Bangladesh Ltd. It will be a natural or herbal product. I have analyzed the brand strategy of this product whether it will be profitable to launch this product or not. The company wants to introduce a new product “Apple Toffee’” which is a new type of toffee but it is totally different from the traditional toffees. there will be some ingredients which will work as mouth or breathe refresher. there will be enough Vitamin-C so usually it will be beneficial for teeth and gum and it will fulfill the want of Vitamin-C.

Now the toffee industry of Bangladesh is very competitive. So. Micro-environment: Customers: Bangladesh is an over populated country. The economy is turning from agricultural sector to service and industry sectors. So to launch a new toffee the company must obtain BSTI approval. And many of them are fond of toffee. Some companies also export their toffee. there is no barrier for toffee. Some of them are national and some of them are local suppliers. 6 . Ecological: Day by day Bangladesh is losing her green beauty. So the supply of raw materials from local and foreign sources is very important in producing the toffee and its good management can be a competitive advantage. Technology: The technological environment of Bangladesh is not developed. The toffee has a good acceptance in Bangladesh. They know that toffee is harmful for teeth and there is a strong idea about this in mind of the people. Now though the economic condition of this country is not so good. Socio-cultural: From the socio-cultural point of view. new and advanced technology and machinery have to be imported from the abroad to produce qualified candy. regulations or the legal condition of Bangladesh is also not a big obstacle at starting new business or to launch new product. So we also have to do business from societal marketing point of view. Competitors: The toffee industry in Bangladesh is not small. So the future of any industry like toffee in this country is very bright. So the consumers’ taste and demand are changing from low quality toffee to high quality toffee. They are comparatively costly also. Now people are also aware of this. encourages and helps to establish new businesses. But some people are disinterested about the toffee. In our country many foreign brands are also available. So the people have also some negative ideas about the product. So there is vast market for the toffee industry. is also attentive about the industry sector. There are a lot of toffee producers. But in terms of introducing new consumer product. Legal: The govt. a company must obtain the approval of BSTI (Bangladesh Standard & Testing Institute). The govt. Government: Now the govt. Suppliers: Bangladesh has a lot of resources. But many people are aware about its bad effect. the industrial sector of this country is being powerful day by day. Even then many items of the toffee especially chemical ingredients have to be imported from abroad.Current Situation Macro-environment: Economy: Bangladesh is a developing country. It has a large amount of population.

I have selected the following segments where we will give emphasis. Geographic:  The whole area of Bangladesh. The current users of Vitamin-C tablets. But there is an idea in the market that chocolate or toffee is very harmful for the teeth. At present. So people have a latent demand of harmless toffee.Marketing Intermediaries: As the various branded toffees are available all over the country. many intermediaries are now involved in this business. will leverage this information to better understand who will be served. Target Market a) b) c) d) e) Those who think that chocolates are harmful for teeth. And there are some kinds of VitaminC tablet and a very few breath refreshing tablets are available in the market. and The current users of the toffee. Target Market Segments Based on the major market segmentation variables our market has been classified. 7 . their specific needs. The current users of fresh breathing tablets or toffees. So a lot of conscious people do not take chocolate or toffee and many parents do no feel comfort to give this to their children. and how the company can better communicate with them. Then after evaluating all potential market segments on the basis of each segment’s attractiveness. I have collected good information about the market and I have personally gathered a great idea about the common attributes of our potential customers. Those who have digesting problems. So using the present intermediaries any company can reach their toffee easily to its target market. a lot of toffees are available in the market. Nestlé Bangladesh Ltd. MARKET SUMMARY According to my market survey. the market has a demand of this kind of product.

 Young generation generally under age range 13-25. Behavioral:  Those who have negative idea about the traditional toffee. Apple toffee which will be harmless for teeth and which will be good for heath.  Old people generally over age 60. and upper middle class. Nestlé Bangladesh Ltd. Psychographic:  The lower middle class. will provide high quality Apple toffees.  The non-users and regular users of the toffee. Nestlé Bangladesh Ltd.  Those who seek good quality. middle class. it has a demand for the customers. will make this product easily accessible to the customers. The company seeks to fulfill the following benefits which are also important for its customers: o Selection: Apple toffees which will give the customers a scope of selection according to their choice.  Those who are unaware about the bad effect of the traditional toffees. It will fulfill the want of Vitamin-C and there is great need of this. Our products will fulfill the following needs of the customers:      “Apple toffee” will be not only safe for teeth but also good for teeth. 8 .  Educated people and conscious parents. Nestlé Bangladesh Ltd. o High Quality: By using high technology and high quality ingredients. “Apple toffee” will provide some exceptional tastes which will provide great pleasure. There is a real need for normal digestion and our product will work as digester. After all.  The student generation. Market Needs: In the market there is a great need of this kind of toffee.Demographic:  Children generally under teen-age. will provide the potential customers with high quality toffee. o Competitive Price: The Company will also offer a reasonable and competitive price for this product. o Accessibility: By using their strong distribution channel. There is a need for fresh breath and our product will serve this.  The conscious people.

Mature retail market in Bangladesh. A brief discussion of Nestlé Bangladesh Ltd internal and external environment is as follows: Internal environment analysis: Every business organization needs to analyze its internal capabilities for developing strategy. The strengths and weaknesses of Nestlé Bangladesh Ltd “Apple toffee” are summarized below: Strengths:  High quality product offerings that will exceed the competitors’ price. SWOT analysis helps explore the areas of possible changes in marketing activities. The major opportunities and threats of “Apple toffee” are given below: Opportunities:       There is a demand for this kind of product. But for this new type of product. it will be difficult to manage for the company.  Nestlé Bangladesh Ltd has a great company reputation  Customer loyalty of the company  Availability of capital  Use of modern technology  Financial stability Weaknesses:  “Apple toffee” is a new brand of the company so it has lack of brand equity.  Nestlé Bangladesh Ltd has this kind of product. quality and services.SWOT ANALYSIS The overall evaluation of a company’s strengths. Expanding awareness of people towards quality foods. Increasing the chocolate industry in Bangladesh. opportunities and threats is called SWOT analysis. To fulfill its mission. External environment analysis: Monitoring the trends of micro and macro environmental forces is also a key concern for management of any organization to avoid the major threats and gain advantages of promising opportunities. distribution and promotion will have to be taken. Nestlé Bangladesh Ltd is committed to capitalize on its key strengths and overcome its major weaknesses. Increasing rate of customers. weaknesses. 9 . There is no existing toffee like Apple toffee.  As it is a new flavor product.

Threats:  The present candy manufacturers are also strong competitors. So we will also have to face its manufacturers.  Our product will be a threat to the Vitamin-C tablets.  As it is a new product. Availability of raw materials.  It may fail to fulfill the expectations of the customers. 10 . there is a chance of rejection by the market.

Create loyal customers.000 In the year-end TK. newspaper ads.00. establishing brand position. Maintaining good relation with backward and forward intermediaries. 1. Generate brand equity in the market so that in future no company can take the market by producing same product.” as it relates to the marketing activities. It considers both sides. Expenses Forecast: Estimated total Cost for the first Six Months: 11 .BRAND STRATEGY Brand strategy is the combination of some technique of the brand establishment that means how can we develop our brand to the customer and also and how can us benefited from our brand activities. Vitamin-C tablets.000 Financial projections: This section will offer a financial overview of “Apple toffee. Financial vision: • • Gain new sets of customers within 6 months that worth for Tk. To attract current customers of the present toffees. fulfilling brand contract. It has selected its target customers and on the business side the target market is small to large size retail shops that want to help their products stay in touch. Nestlé Bangladesh Ltd will decide to market Apple toffee all over the country especially in the urban and sub urban areas. steady growth each month. Nestlé Bangladesh Ltd overall marketing strategy will be to create a positive image of offering the highest quality candy.the customer side and the business side. Brand Vision “To provide highest quality toffee” Marketing vision: • • • • • • To maintain positive. sales forecasts with the first six months estimated sales.00. Especially brand strategy is a combination of developing brand vision. and the possible profit after six months in this section. Customers will be communicated through advertisements such as TV ads. 6. break-even analysis.50. and other media. mouth refreshers.00. communicating brand position and measuring ROBI (Return on Brand Investment). I have addressed all expenses forecasts with fixed costs and variable costs and with first six months estimated costs. To increase new customers who don’t buy toffee. and digesting tablets.

1. 1.000 Tk. 50. 5.50.000 Tk. 1. On an average per piece of toffee will be sold for Tk.000 Tk.000 Tk. 10.000 Tk. 58.000 Sales Forecast There will not be enough sales in first month. In the second month the sales will be increasing at a satisfactory rate.00.10.Fixed cost Raw materials Preservation chemical Rent Employee (Operation & Sales) Salary Packaging Promotional Expenses Distribution Commission Operational Expenses Administrative Expenses Insurance Interest Miscellaneous Expenses Total Tk.00. 12.00.000 Tk. 10.00. 12. Estimated Sales for the first Six Months: 12 . 1.000 Tk.00.000 Tk.000 Tk.50.50. 1.000 Tk.85.000 Tk. That means from month three there will be a steady increase in production and sales. 1. 75.000 Tk. From the third month the increasing rate of sales will be very high.00.000 Tk. Our sales forecast is 1000000 pieces toffee for the first six months.10.000 Tk.50.50.

Estimated Sales (TK. breakeven point can be achieved within 6 months. 13 .) 1200000 1080000 1000000 900000 720000 800000 540000 600000 Series1 360000 400000 180000 200000 0 1 2 3 4 5 6 Consecutive Month Break-even Analysis: BEV= Fixed cost / (Price.Variable cost) 1000000 10-5 =200000 units So.

And we can set up Tk. As our toffee will provide Vitamin-C. o In terms of Vitamin-C. Here. Our price will indicate that quality and consumers gut feeling about the product. we can charge a high price not for product – for brand. Love Candy.5 for per piece toffee. etc. this Apple toffee will be a great threat for many candies and also some other products. The main competing brands are as follows: o In terms of candy. So here so many challenges on our product.Establishing Brand position Nestlé Bangladesh Ltd will position “Apple toffee” as: “Harmless toffees” Competition: Although there is no product present in the current market. we can set Tk. Alpenlibe. All the present candies will be the competitors of the “Apple toffee. o In terms of breath refreshing. major competitors are Nabisco. Safari. Then we have to eliminate all challenges. As we will build our image as quality product.50 for the packet which will contain 10 candies. This will also be a threat to the digesting tablets or pills. Uniqueness: Product Ingredients • • • • • • 10 small to medium apples. We can do it by following these steps of effective positioning: Value: Here Nestlé will set value-based price. Tasty Hajmi. o In terms of digesting tablet. Polo is the main competing brand. And we also set Tk. So this type of products will also be our product’s competitors. major competitor brands are CEEVIT. this will be a threat for all the Vitamin-C tablets. Mon Chiri. Eno. And it will also be a threat for the breath refreshing tablets. Hajmola are the main competitors.25 for second type of packet which contains 5 candies. washed and dried 4 cups (1 kg) sugar (white or brown) 8 oz (250g) butter 4 tbs white wine vinegar 4 tbs boiling water 1/2 teaspoon red food coloring Steps 14 . This price will be the ultimate retail price. Milk Candy.

Test the toffee. 5. Drop a little bit of caramel into a bowl of water. 6. Remove from the heat and let the bubbles disappear. vinegar and boiling water. Stir continuously until the sugar has all dissolved. Food coloring add. Have to cook over a low heat.1. Push it through the top until it gets halfway inside the apple. 15 . Pierce the apples through with the wooden skewers. Check for a firm hold. the temperature should read 150ºC (302ºF). Tilt the saucepan with the toffee mixture in it. 7. (Have to use some sort of wedge to free up hands). 3. Once the sugar has dissolved. boil the mixture for 10 minutes or until the mixture reaches a 'hard crack' stage. 2. Have to mix the sugar. Have to make sure of using a saucepan that has a heavy base to prevent sticking. 8. If it hardens immediately. 4. butter. it's ready. Do not stir! If there’s had a candy thermometer. 9.

14. Serve and enjoy! We have to make high quality products. The color of the product will come form the ingredients. The design of the product will be the slender-round and the slightly long. Pineapple. 12. Olive etc. allowing any excess drips to fall back into the saucepan. We have to maintain machinery based production. Tamarind.10. We will launch our products in apple flavor. The package of the toffee will be attractive and exclusive. packaging and quality control. Initially the company will make available this product for retail sales in three types of packet. So for the production we have to use high technology. 16 . dip the covered apple immediately into ice cold water (throw in ice cubes if necessary). Dip the apple into the toffee and twist it around gently until the whole apple is coated in toffee. Put the apple down onto a tray covered in baking paper to set. Remove the apple. We will also have the plan to launch toffee at the taste of Grape. 13. 11. To harden the toffee.

The company can use its present marketing channel to make the products available all over the country. The company has many consumer products. Radio. Nestlé Bangladesh Ltd can also use its current delivery vehicles to deliver the product to the wholesalers. Nestlé Bangladesh Ltd will have to take this kind of promotional activities such as stall booking in many trade fair. In the electronic media’s advertising the company can present famous and renowned doctors to inform people about the difference between traditional toffees and our Apple toffee. child fair etc. The company will take the strategy to create awareness about the bad effects of the traditional toffees. Nestlé Bangladesh Ltd will use ads through TV. company’s current marketing channel is enough to deliver the products to wholesalers and retailers. So at introduction stage. In the newspaper advertising.Credibility: By using the present distribution channel Nestlé Bangladesh Ltd can easily market this product. Then the company will present its toffee to the market as harmless. How much time and money can we spend on the effort? Nestlé Bangladesh Ltd will take a large promotional program for this product. In their TV commercial they will also try to build awareness in the minds of the customers and try to acquire a strong position in the minds of the customers. 17 . In introduction stage sales promotion will not also be considered. The company will keep a hand some amount for the promotional activities of the product. The company can use its local offices to deliver to the retailers. to create a positive image about the brand. Communicating Brand Position To develop a total promotional campaign we must answer these questions: I. What are the best media and activities for reaching our potential customers? III. the company will know or inform the people about the bad effect of the traditional candies and inform about the good sides of the Apple toffee. What message and image do we want to promote? II. The company will take a mass public relation program. The company needs no special personal selling program for this product. the company will focus or emphasize on the children and students as well as old people. In the promotional activities. and Newspaper to aware people about this toffee. As it is a new brand more promotion is needed to build up the brand awareness.

the management will monitor the total environment. and in some ads to attract the children and young people. The intermediaries are given many gifts items such as wall clock. arena every challenge makes an opportunity if the program is handled smartly. Finally. The company also uses this brand’s logo. neon boards. on many toys. marketing process. in the marketing.Nestlé Bangladesh Ltd will give many facilities to the retailers and the wholesalers. They will develop some cartoons which will be used on the T-shirts. and gap and will take the corrective actions if necessary. progress. Measuring ROBI Initially we have to monitor the goals. bill boards. To take the competitive advantage the company will give more facilities than its competitors. The company always has to maintain the TQM (Total Quality Management). bill board etc. symbol etc. we have to take corrective actions. if there is any problem arise in production. 18 . or any other areas. There is a low possibility of new competitors in the market. the marketing process in every month. picture. If there find out any gap in plan and output. Not only that. we have to take necessary steps to overcome that. We know. T-shirts etc. The marketing strategy could be change of reform. dolls and on many other things to know and attract the target market. and sales helping equipments such as keeping pots.

CONCLUSION We are very much confident about the new product “Apple toffee” as there is no such kind of product in the current market and our product will be high qualified. And we can serve the society or the people through our business. If we want to do this then we can collect a hand some amount from the foreign market. Then we can go for vast production or in other business which will create opportunity in the market. This product has some exclusive characteristics that will help us to acquire position in the minds of the customers. We have a plan of exporting our products to the foreign countries. ****** ****** 19 .