Nestlé 

is the world’s largest food group involved in

nearly every field of nutrition, with a turnover of 81.4
billion Swiss Francs annually. With a total workforce of
approximately 224,541 people in some 479 factories
worldwide, Nestlé is not only Switzerland’s largest
industrial company, but it is also the World’s Largest
Food Company. Nestlé products are available in nearly
every country around the world. Nestlé is dedicated to
providing the best foods to people throughout their day,
throughout their lives, throughout the world. With their
unique experience of anticipating consumers’ needs and
creating solutions, Nestlé contributes to everyone’s well
being and enhances the quality of life. Wherever one
lives, only Nestlé can provide the best and most relevant
food and beverage products to meet everyone’s needs
throughout the day, and life.
 
Nestlé provides a wide, diverse range of products,
suitable for use and consumption of everyone ranging
from infants to adults. Its main brands include:
Main Brands
 
Soluble coffee: Nescafé, Taster’s Choice, Ricoré,
Ricoffy
Roast & ground coffee: Nespresso, Bonka, Zoégas,
Loumidis
Water : Nestlé Pure Life, Nestlé Aquarel, Perrier, Vittel,
Contrex, S. Pellegrino, Valvert, Panna,  Levissima, Vera,
Fürst Bismarck, Viladrau, Arrowhead, Poland Spring,
Zephyrhills, Santa Maria, La Vie
Other beverages : Nestea, Nesquik, Nescau, Milo,
Carnation, Libby’s, Caro
Dairy products (shelf stable) : Nestlé, Nido, Nespray,
Ninho, Carnation, Milkmaid, La Lechera, Moça, Klim,
Gloria, Svelty, Molico, Nestlé Omega Plus, Bear Band,
Cofee-mate / (chilled): Nestlé, LC1, Chamyto, La
Laitière, Sveltesse, Yoco, Svelty, Molico
Breakfast cereals: Nestlé
Infant foods : Nestlé, Nan, Lactogen, Beba, Nestogen,
Cérélac, Neslac, Nestum, Guigoz
Performance nutrition : PowerBar
Clinical nutrition : Nutren, Peptamen, Modulen, Build-
up, Nesvita
Culinary products : (bouillons, soups, seasonings,
prepared dishes, canned food, pasta, sauces),  Maggi,
Buitoni, Crosse & Blackwell, Libby’s, Thomy, Winiary
Frozen foods : Magi, Buitoni, Stouffer’s
Ice cream : Nestlé, Frisco, Motta, Camy, Savory, Peters
Refrigerated products : (yogurts, desserts, pasta,
sauces): Nestlé, Buitoni, Herta
Chocolate and confectionery : Nestlé, Crunch, Cailler,
Galak/Milkybar, KitKat, Quality Street,    Smarties, Baci,
After Eight, Baby Ruth, Butterfinger, Lion, Aero, Polo,
Frutips, etc.
Food Services and professional products: Chef,
Davigel, Minor’s, Santa Rica
Pet care: Friskies, Fancy Feast, Alpo, Mighty Dog,
Gourmet, Mon Petit, Felix
Flavours for the food industry: Food Ingredients
Specialities (FIS)
Pharmaceutical products : Alcon, Galderma
Cosmetics : L’Oréal (important interest)
 
 
Nestlé Bangladesh Ltd.
 
Nestlé Bangladesh Limited is a wholly owned
subsidiary of Nestlé S.A. Switzerland. The factory is
located 55 K.M. from Dhaka and produces instant
noodles, chocolate drinks & repacks milks & infant
nutrition products. The Company wants to be recognized
as the most successful food and drinks company in
Bangladesh, generating sustainable, profitable growth to
the benefit of shareholders and employees.

 Product Profile
Product: Nescafe
The beginnings of Nescafé can be traced all the way
back to 1930, when the Brazilian government first
approached Nestlé. Nestlé’s coffee guru Max
Morgenthaler, and his team set out immediately to find a
way of producing a quality cup of coffee that could be
made simply by adding water, yet would retain the
coffee’s natural flavor. After seven long years of research
in Nestlé’s Swiss laboratories, the answer was found.
The new product was named Nescafé – a combination of
Nestlé and café (wherein the word café
means ‘coffeehouses or coffee-bars). Nescafé was first
introduced in Switzerland, on April 1st, 1938. For the first
half of the next decade, however, World War II hindered
its success in Europe. Nescafé was soon exported to
France, Great Britain and the USA. Without realizing it,
America played a key role in re-launching Nescafé on
the continent by virtue of the fact that it was included in
their food rations. Its popularity grew rapidly through the
rest of the decade. By the 1950s, coffee had become the
beverage of choice for teenagers, who were flocking to
coffeehouses to hear the new rock ’n’ rollmusic.
It is currently estimated that, on average, some 3,000
cups of Nescafé are drunk every second. As is evident
Nescafé’s come a long way since 1938 and all is owed to
Max Morgenthaler and his team!
Nescafé Classic
In Bangladesh under the sole distributorship of Nestlé
Bangladesh Ltd., Nescafé Classic was first introduced in
1998. This was a beverage aimed at the upper and
middle segment of the population. In October 2000,
another Nescafé beverage, viz., Nescafé Sunrise was
introduced for the lower income population. Other
Nescafé products available in the market such as
Nescafé Gold, Nescafé gold Blend are all imported and
not distributed by Nestlé Bangladesh Ltd
Packaging
1938~ The original Nescafé pack first used in France,
then Great Britain and the USA. Over the years the
product’s logo has changed a little bit…..
1952~ A major breakthrough was made at St. Menet, in
France. The Company could now make Nescafé using
100% pure roast coffee beans, with nothing else added.
So they quickly introduced 100% pure soluble coffee
throughout the world.
 1965~ The Company introduced freeze-dried soluble
coffee with the launch of Gold Blend.
1967~ The birth of the granule! With this innovation it
was possible to capture more aroma and flavor from
every single coffee bean.
1994~ The ’full aroma’ process was invented to make
the unique quality and character of Nescafe´ even better.
1999~ Today, Nescafé coffees are available to suit all
tastes and in a wide range of packaging. But Nescafé
still holds true to its founder’s aim – to bring everyone the
world’s very best coffees, the Nescafé way!
Positioning Statement
“Nescafé is a contemporary, up-beat brand of
distinctive quality that offers me a rewarding coffee
experience every time, everywhere.”
 This is the positioning statement that Nescafé wants it
consumers to relate to when they drink Nescafé Classic.

Segmentation and Target Market

The company has determined Nescafé’s target market
based on a multi-attribute segmentation model. The
pattern of segmentation selected is homogenous
segmentation based on the belief that all consumers of
Nescafé have similar preferences on the dimensions of
both taste as well as quality.

The bases on which this segmentation has been done

are as follows:
Age and Life-Cycle Stage: Nescafé targets the late
teens to early thirties segment of the population. As its
secondary target market it aims at the 30+ segments.
According to Nescafé it is the 18-30s market in
Bangladesh that shall be its future potential coffee
drinkers and hence it focuses on appealing to them.
Income: The target market includes all those individuals
having a monthly income greater than or equal to
Tk.10000. (MHI = Tk.10000)
Density: Nescafé has been focusing all its resources on
appealing to the population living in the urban areas.
Due to limited resources the company feels that diverting
resources to the rural areas will not be cost-effective.
Social Class: Coffee is a drink for the affluent segment
of the society. As such Nescafé targets the upper strata
of society.
Lifestyle: People believe that coffee consumption is an
indicator of their rich and prosperous standard of living.
Nescafé users or potential users are assessed to be
individuals with active lifestyles and hence Nescafé
produced its line of Instant beverages.
Personality: Nescafé has endowed its products with a
brand personality that corresponds to its present and
potential sconsumers. Some of the personality traits of
Nescafé are: Confident, Positive, Success and
Achievement-Oriented, Getting started in life, Dynamic
and Optimistic.
Occasions: Nescafé promotes its beverages as ideal for
all occasions such as breakfast, midday, evening, night
(when you want to stay awake), important days such as
Valentine’s Day, etc.
Benefits: Nescafé users can be classified as ‘people
who seek to be recharged’, ‘people who want to let
others know that they have important stations in life’,
‘those who want to start their day with something
positive’, etc.
User Status: Nescafé’s markets can be segmented into
nonusers, potential users, first-time users and regular
users of coffee.
Usage Rate: Markets are segmented in to heavy coffee-
drinkers, medium to light consumers. Nescafé tries to
capture heavy to medium users of its product.
Consumer Profile
In brief, the consumer profile is as follows:
 Primary: 18 to 30 years: Both male and female.
(Valentine day’s campaign).
 Secondary: 30+ years.
 Geography: Urban (no rural market positioning done yet
as it is not cost-effective).
 Demography: Young, College & University students,
Office executives and self-employed Individuals; MHI >=
10,000
 Psychographics: Modern, Friendly, Social, Adaptive to
Change, and Attracted by Internationalism.
Nescafe is focusing on the huge market potential in our
country. In a country of over hundred twenty million hot
beverage drinkers Nescafe is yet to take full advantage
of the huge market potential that lies in front of them.
However, since its introduction in 1998 Nescafe
Bangladesh has achieved a remarkable growth rate of
almost 27%. Everyone can see that coffee drinking is
rapidly gaining widespread acceptance. This is due
mainly because of the shrewd market positioning of
coffee by Nescafe Bangladesh.
Nescafe’s marketing strategy is based on two basic
understanding of the consumer behavior. Firstly, it is
trying to increase the consumption of coffee as a whole
instead of trying to gain a larger market share of the
existing coffee market. This is mainly because their
market share is currently over 79% of the existing coffee
market. This not bad by any standard and the lost market
share is due to consumer convenience. So, it is fair to
hold on to existing market position. But the alarming this
is that despite all their efforts coffee consumption is only
2% of the tea market. So, success lies in increased
coffee consumption.
 
Secondly, Nescafe is targeting the younger generation
as their target consumers. This is because if a youngster
becomes coffee drinker he will serve as a customer for
nearly 25-30 years. The other factor is that their
relationship with tea is not as deeply rooted as their older
generation and thus is easier to change. So, Nescafe is
positioning itself as a trendy, sophisticated, modern hot
beverage.
The consumer research that we have conducted
confirms that they have positioned their product correctly
and have a tremendous probability of gaining success.
Market Position of Nescafé
Although coffee drinkers are much less than 1% of the
population, our survey that considered only youngsters,
shows that 9% of the youngsters are coffee
 

drinkers. More importantly, almost 40% drink both tea

and coffee. This vast group is very likely to get
influenced in the future because of widespread media
promotion of Nescafe. All this is showing that the young
generation is increasingly developing a liking for coffee
and the shift from tea towards coffee has begun.
When it comes to drinking coffee, almost 92% of the
respondents answered Nescafe. This included both the
company’s product and the importers. The only other
brand to have an impact is Valentino. Valentino’s market
presence is not because of taste and recognition but
because of the fact that it is served through vending
machines. Nescafe is encouraging the promotion of
coffee by any other brands or distributors because it will
only broaden the growing coffee market.
Marketing Activities of   Nescafé:
PROMOTION
Actually promotion comes from the developing the
marketing mix .As we know that the 4Ps of the marketing
mix-product, price, place & the promotion means
activities that communicate the merits of the product &
persuade target customer to buy it. There are four
variables in promotion is known as –APPS that means
advertising, personal selling, public relation, & promotion.
1.   ADVERTISING
In this part I have discussed advertising of Nescafe, a
paid from of non-personal presentation and promotion of
ideas, goods or services buy an identified sponsor.
# Objective of Advertising: The objective of the
company is to draw attention to the buyer of the
products, brands & its quality.
#Advertising budget: Nescafe Company spent one
third of their total expenses. Here we give an
approximate budget of the Nescafe co. ltd
# Advertising strategy: Nescafe follows different
strategy for developing its strategy. It depends on some
characteristics that is product life time, brand etc
 
# Media: Nescafe Company used different media for
advertising like- on-air advertisement, television,
newspaper, magazines, radio & neon-sign etc. Everyday
radio telecast a program at 12:30 pm. named “Sotag ar
saty prote kon”
1.   SALES PROMOTION
 
Nescafé sales promotion consists of short-term
incentives to encourage the purchase of sale of a
product or services.
 
#Sample: The company do not provide any sample for
the sellers because it is very expensive & also they
dominant in the market.
 
#Coupon: Nescafe co. gives coupon to its customers
like – million taka offer, tinting etc
 
#Price-pack: Because of the many competitor in the
market exist that’s why the Nescafe co. cuts its price for
the convenience of customer like- scratch card, gift etc.
 
#Premium: the Nescafe co. offers no premium for its
customer or seller.
#Advertising specialty: Yes, Nescafe co. maintains the
advertising specialty because they have various type of
brand & their customer also vary.
 
#Discount & Allowance: Obviously, Nescafe provides
discount & allowance for the seller to increases the sale.
 
2.   PUBLIC RELATION
 
#Press relation: To draw the attention & attracting the
person to inform about the product Nescafe co. regularly
maintain the press relation.
 
#Product publicity: Nescafe co. publishing about the
new product like- large packet, small packet, & medium
size packet.
a)   PERSONAL SELLING
#Tutorial sales force structure: Actually this co.
doesn’t apply any sales person to sell its product.
#Relationship marketing: The Nescafe co. follow the
relationship marketing to maintain & enhancing strong
value laden relationship with its customer & other
stockholders.
 
Marketing Strategy of Nescafé
 
 
The dominant features of Nescafe’s marketing strategy
are:
 Try to get the consumers to try the product outside their
homes. Because, people are more likely to out new
things when are outside. People tend to bring back home
the products, which they have tried and liked outside. In
most of the ads, models are often drinking coffee outside.
 Try to give place convenience by offering coffee at every
possible hotel, restaurants and fast food shops. It will be
beneficial if coffee can be made available in vending
machines or to give it to coffee-boys.
  Nestle Bangladesh does not discourage the promotion of
other coffee brands or importers. Rather it thinks that
their campaign will influence people to drink coffee more
and thus be beneficial for Nescafe as well.
 Try to give Nescafe a sophisticated and classy image as
well as hold on to the reputation of quality. All the TV ads
are in English to match their image. If possible try to give
a distinct brand personality.
 Try to associate Nescafe with the culture especially the
youth culture of this country. If possible try to associate
with the positive things the young people like to do. Also,
if possible try to incorporate with the office culture and try
to convince people that even if they do not drink coffee
right now, it will be appropriate and expected from them
to drink coffee after they have reached a certain stage of
their career.

Most importantly the focus is not to increase their market

share in the existing coffee market, but rather to increase
the coffee consumption as a whole. So projecting an
image that Nescafe is coffee, and coffee means Nescafe
would be appropriate. It is the prime objective to make
people think that Nescafe is a far better choice than tea
even if drinking coffee requires a bit of extra effort and
price.
How They Manage Their Salespeople
Nescafe-Nestle Bangladesh Ltd. follows some policies to
manage their sales people. These ways are described in
below:
“Setting a sales target and then shoving it down
their throats”
“People, especially salespeople, don’t like being dictated
to,” says Mr. Nokib Khan Executive Manger of Nestle
Bangladesh Ltd.He believes the old school of sales
management tells people what to do. But the new
school invites salespeople into the process of setting
quotas and goals, allowing them to figure out what they
are capable of achieving.
If you think this sounds like letting the inmates run the
asylum, think again. According to one manager, the
great paradox is that salespeople will invariably come up
with a more aggressive sales goal when left to their own
devices than if their manager sets the target.
 
“If you tell a salesperson he must do $2 million dollars
next year, he will call you crazy and say it’s impossible,”
says the sales manager. “But if you work with
salespeople and encourage them to analyze their
accounts, they’ll come up with a number that is
consistently higher than what you would have set your
self. It’s really a shocking phenomenon.” So shocking
that this manager often has to encourage his people to
adjust their optimism and set slightly more realistic goals.
The secret sauce in the goal-setting formula is
accountability. If salespeople feel like they helped shape
the overall plan, they have a personal stake in the
outcome. “By including your salespeople, you give them
added motivation to succeed,” says Deceuster. “But
without inclusion, salespeople will figure out the best
excuses in the world why they can’t achieve.”
The Numbers Game
But what happens when upper management devises a
wildly unrealistic sales target and drops it down from
above? What should a sales manager do? Some
managers who have been in this position say it is
impossible to push back against management without
losing their jobs. Likewise, it is imprudent to force the
number on salespeople and expect them to perform.
“You work for the company, so it’s your obligation to
reach the goal, no matter how unrealistic,” says one
sales manager. “But it’s also your obligation to protect
your salespeople from arbitrary numbers.” This manager
suggests figuring out other ways to remunerate your
salespeople other than simply quota-based
commissions. That might mean convincing management
to offer greater incentives or a higher base salary.
 
Nestle needs to deliver against a number set by the
corporate office. At Reed that number is not determined
in a vacuum, but rather is based on direct input and data
from people in the field. “Our sales targets start with the
individual salespeople doing a strategic assessment of
their accounts and territories, evaluating everything from
revenue flow to run rates to new areas of growth,” Sales
Manager explains. “We then take that data from the
street and match it up with corporate objectives.”
Once the goals are set, Sales Manager, who manages a
team that sells everything from traditional print ads for
magazines to banner ads for online properties, meets
with his people to review those goals on a weekly and
monthly basis. “There has to be a continual dialogue,”
says. “If we set a goal and don’t regularly assess what is
happening, we’ll never reach the target.”
One Step at a Time
One another step that connects buyers and sellers of
industrial products, says it’s crucial for salespeople to
establish a set of daily, weekly and monthly benchmarks
that help them measure and manage their ultimate goal.
For instance, if one of her salespeople has a target of $1
million, she doesn’t ask them to focus on the actual
dollars, but the activities that will help them reach that
mark.
Nestle believe it’s important to identify and measure
several key success indicators, such as the number of
follow-up appointments in a week, the number of
networking events you’ve attended, or the number of
contracts you’ve renewed. It even establishes weekly
and monthly contests for her salespeople based on
these very metrics. “By breaking goals down into smaller,
easier-to-digest targets, you can start seeing the impact
immediately,”. “It can be much more effective and
rewarding, rather than simply striving for year-end results
that are way down the road and seem so far out of
reach.”
Another effective tactic for setting and managing sales
goals is to step back and evaluate what went right and
what went wrong the previous year. After all, if you don’t
learn from our mistakes, we are doomed to repeat them.
And if you don’t learn from your successes, you can’t
replicate them.
“I have my teams write out three lessons from their
successes and failures that can guide them as they
move into the future,” says marketing manager. On the
negative side, he finds that salespeople consistently
believe they do not have enough time in the day to get
things done, which prevents them from reaching their
ultimate goal. The trick,, is getting them to reframe
negative associations in a more positive light. For
instance, you can’t change the number of hours in the
day, but you can always find time to do what is important
by prioritizing your tasks and systematically checking
items off the list one at a time.
A Team Effort
Many sales managers employ a consultative approach
when helping to set goals for their staff. Marketing
Manger of Nestle first asks his team members to map
out where they want to be financially and how much they
want to earn. He then tells them to work backwards from
there. “Let’s say a salesperson wants to earn $100,000 a
year, and to get that, they need sales revenue of $1
million,” he says. “Together, we’ll look closely at each of
their accounts and identify areas of growth where new
sales can come from.” He wants his salespeople to be
aggressive, but he is also careful that they don’t set
themselves up for failure. For instance, a sales target of
$5 million might be overly optimistic if the sales
representative in question has never surpassed $1
million in his career.
Another effective tactic is encouraging sales staff to
share their goals with the entire team and other people in
the organization. When goals are shared, people
become more vested in the outcome and ultimate
success. “We break commitments to ourselves all the
time, but once we inform friends, family and colleagues
of our goals, the stakes are instantly raised,” says Lori
Richardson, president of Score More Sales, a sales
effectiveness organization. People are less likely to back
away from their goals without giving it a lot of thought
and reasoning first. What’s more, by trusting others with
your goals, you acquire a support group that can help
you stick with it and spur you on to success.
Conclusion
Finally, it’s critical for sales managers to celebrate
success and publicly acknowledge outstanding
performers who meet and exceed their goals.
“Salespeople respond tremendously to positive
reinforcement,”
But Nescafe-Nestle Bangladesh Ltd. manages their
sales people with extraordinary systemic policies. We
can say that the policies of they manage their sales
people in right way. So the company is growing up day
by day and they should able to reach their goal. At
present Nescafe is not facing any   hard competition from
other branded coffees. Nescafe is trying to position itself
in the higher end of Bangladeshi market.  So far its
promotional and marketing campaign has paid of and it
holds more than 80% of the Bangladeshi coffee market.
The way Nescafe is trying to position and promote itself
is very logical and we can see only success in the days  
to come….up.