Assignment On Marketing Strategy of Nestle Bangladesh Limited Course: Principles of Marketing (M !

"#"$ Prepared %or ashfia Ahmed Senior Lecturer Department of Business Administration East West University

Prepared By Emranul Islam Emran %ossain &iloy (2009 2 !0 0"#$ (2009 2 !0 2'2$

East West University

Serial No. 1. 2. &. '. ). +. ,. -. ..

Table of Content Topics Name Executive summary istorical !ac"groun# $f Nestle Company Profile T(eoretical Consi#eration *ar"eting Strategies *ar"et Segmentation *ar"et Targeting *ar"et Positioning Conclusion

Page No. %1 %2 %& %& %& %+ %, 1%

Executive Summary
Nestle is a worldwide company of milk products and nutrition, beverage, catering and many type of confectionary goods. It has its millions of customers worldwide. Nestl Bangladesh Limited, a wholly owned subsidiary of Nestl S. ., started its commercial production in !""# .$oday Nestl Bangladesh Limited is strongly positioned to grow through its policy of constant innovation and renovation, concentrating on its core competencies and commitment to high %uality, with the aim of providing the best %uality food to the people of Bangladesh. In the report we have brought a discussion about the marketing Strategies of Nestle through segmentation, their target market and positioning. $he way Nestle identify its different target customers different demands with an efficient way and how it satisfies its consumers by creating greater facilities by the combination of separate products or marketing mi&es are shown in market segmentation of Nestl. In the part of market targeting we have discussed how Nestle have made various segments and decided to spread their whole operation in whole Bangladesh. In the last part of this we have discussed how Nestle reached to the customers point more effectively comparing with their competitors in the highly competitive food' beverage market of Bangladesh by making differentiation of target customers.

istorical !ac"groun# of Nestle

Nestle is the largest nutrition and foods company in the world, founded and head%uartered in (evey, Swit)erland. $he *ourney of Nestle begins when +enri Nestl developed the first milk food for infants in !,-., and saved the life of a neighbor/s child. +e invented a food for the infant babies who are unable to take mothers feed can use it as an alternative food.+enri Nestle retired in !,.0 but the company was going on a full swing. In the following year the Nestl company added condensed milk, so that the firms became direct and fierce rivals. the company was merged in !"10 with the another company named fter that nglo2Swiss

3ilk company which was founded by two brothers named 4eorge 5age and 6harles 5age. $he company grew significantly during the 7irst 8orld 8ar though it fall in debt, a banker help it to reduce its debt. fter the Second 8orld 8ar, the company eventually e&panded its offerings beyond its early condensed milk and infant formula products. $he !"91s saw Nestl:s first e&pansion into new products, with chocolate the company:s second most important activity. Nestl felt the effects of 8orld 8ar II immediately. 5rofits dropped from ;S<91 million in !"=, to ;S<- million in !"=". But at the end of 8orld 8ar II was the beginning of a dynamic phase for Nestl. 4rowth accelerated and companies were ac%uired. 9,=,111 individuals. In the year of !""# it started its business in Bangladesh. t present the company operates in ,- countries around the world and employs nearly

Company Profile/ Net 0ncome Employees Website ea#1uarters 2ey People 0n#ustry Pro#ucts 3evenue 6+7 !1.#= million !#11 www.nestle.com 4ulshan $ower >#th 7loor? 5lot =!, @oad 0=, 4ulshan North 6A Bhaka !9!9 5eter Brabeck2Letmathe >6hairman?, 5aul Bulcke >6CD? 7ood 5rocessing 3ilk products, beverage, catering. baby food 6+7 !1..- million

T(eoretical Consi#erationE
*ar"eting StrategiesE $he Strategic plan defines the company/s overall mission and ob*ective and hopes to achieve company/s ob*ectives. $hrough market segmentation, targeting and positioning the company decides which customers it will serve and how. $he company also designs a marketing mi& made up of factors under its control product, price, place, promotion.

Strategy of Nestle !angla#es( 4imite#/

Nestl/s basic strategy is to cover only the urban area of Bangladesh. $hat/s why they are doing their activities in main and metropolitan cities of Bangladesh. $hey want to keep babies and children healthy and ensure their proper nutrition. $hat/s why ma*ority of their products are baby food products. $hey also target new generation to build a strong relationship by providing various food products. In the report, we are going to focus on 3arketing Strategies of Nestle is to segment, target the potential customers and to positioning of their profit oriented products. $heir segmentations, targeting, positioning process are given below. $hey want to move customers toward their products. $hat/s why they are offering new products continuously. $hey also arrange many social competitions for babies to enter their mind. In this report we are going to focus 3arketing Strategies of Nestle Bangladesh Limited is to segment, target the potential customers and to position of their profit oriented products. $he relevant information is given below. *ar"et Segmentation/ $he marketing concept calls for understanding customers and satisfying their needs better than the competitors do. But different customers have different needs and it rarely is possible to satisfy all customers by treating them alike. 3arket segmentation is the identification of portions of the market that are different from one another. Segmentation allows the firm to better satisfy the needs of its potential customers. !. 6learer understanding of the needs and wants of selected customer groups. 9. 3ore effective positioning. =. 4reater precision in selecting promotional vehicles and techni%ues.

!ases for Segmentation/

6onsumer markets can be segmented on the basis of following customer characteristics. !. 4eographic 9. Bemographic =. 5sychographic #. Behavioral

5eograp(ic/
8eatherE Nestl Bangladesh Limited segmented its market for Nescafe Ice based on the geographic weatherE hot and cold. Nescafe IceE coffee which can be consume with ice. Buring hot season consumers consume this coffee with normal or cold water with ice cube to bring freshness in their mind.

6emograp(ic/
7ge/ Nestl segmented market for its ma*or products based on the age. 7or the products 6erelac, Lectogen, Foko Frunch, Nido, Nestle divided the market segment for baby and children of different ages. Ni#oE It is nutritious milk specially formulated for children 9 years onwards. It contains 90 minerals and vitamin B which helps child/s growth. CerelacE Nestle also offers cerelac for new born baby. It contains milk and rice mi&ed for under one year/s baby. It fulfills baby/s proper nutrition. Nes1uic"8 2o"o 2runc(E Both are chocolate milk for children.Nes%uick and Foko krunch maintain child/s proper growth. It/s very delicious and also contains vitamin protein, mineral. 4actogenE Nestle Bangladesh brings full cream milk powder in our country. It gives baby proper nutrition.Lactogen ! is for babies whose age less than . months and lectogen = is for babies whose age is below !9 months. 0ncomeE Nestle segmented their market based on customer/s income in an effective way.

4ectogenE Nestle charge tk ,11 for per "11 gm Lectogen !9 milk powder. $hey also charge tk !111 for "11 gm Lectogen = milk powder pack. 3iddle income and low income people are not able to buy these products for their babies. $ccupationE Nestle segmented the market based on their customer/s occupation. Nescafe classicE $his product is for those who work hard and needs more freshness. Both the male and female who need more caffeine Nescafe classic is for them.

Psyc(ograp(ic/
Life style and personalityE Nestle Bangladesh provides FI$ F $ these people who really want to en*oy chocolate. Nescafe = in ! is for e&clusively those customer/s who are really busy and do not have enough time. $hey can save their time by taking Nescafe = in !. ll the things sugar, milk and coffee remain mi&ed.

!e(avioralE
!enefitsE Based on benefits Nestle Bangladesh segmented their market in an effective way. So they provide 6erelac for those customers who want more benefits from the products. 6erelac contain a high nutrition for baby/s whose age below ! year. $wo most important elements rice and milk remain mi&ed in cerelac. Dn the other hand, cerelac contains vitamin, mineral and all nutritious elements for babies.

Target *ar"eting/
3arket segmentation reveals the firm/s market opportunities. $hen the firm sort market targeting by evaluating the various market segments and deciding which and how many segments it will target. Nestle Bangladesh Ltd evaluated the various market segments on the basis of segment si)e and growth, segments, structural attractiveness, and company ob*ectives and resources and decided to launch their operation all over the country. Nestle separate their target market because of having uni%ue need and wants. Nestle Bangladesh Ltd selected their target market into two market coverage strategiesE Un#ifferentiate#E Nestl has offered several products such as Nescafe = in ! 3aggi noodles, and Fit Fat to the people of the whole Bangladesh without differentiating the market segment.

6ifferentiate#E Nestle also selects the differentiated marketing. It offers different product for different segments based on different age, occupation, season and climate. Nescafe & in 1E 6offee for people who are busy. 2o"o 2runc(8 Nes1uic"E 6hocolate milk who want to get taste of chocolate. Nescafe 0ceE 6old coffee for the people in hot weather. Concentrate#/ $hrough concentrated marketing, Nestl achieves a strong market position because of its greater knowledge of consumer needs. In the niches it serves and special reputation it ac%uires. Nestl speciali)es in producing baby foods. It offers nutritious milk powder Lectogen ! for babies whose age is less than . months and lectogen = for babies whose is under !9 month. It also offers baby nutrition cerelac for baby less than ! year.

Positioning Strategy/
By creating product, service, channel, people and image differentiation Nestle reach the consumer touch point more effectively ' efficiently in comparing with their competitors in the highly competitive food processing sector. Pro#uct 6ifferentiationE Nestle brings a lot of product for target customers. $hey provide 90 types of minerals in Nido for children. It also provides 6erelac and Lactogen! '= for newly born baby e&clusively. Now the doctors prescribe these products for babies to their parents for high nutrition Nescafe is a product which contains # types of categories. $hey offer Nescafe ice for hot weather, classic for all = in ! for those who are busy. $hey provide 3aggi including 3aggi instantG 3aggi 9 minutes which contain various minerals, vitamins and nutritions.3aggi also provide magi healthy soup and 3aggi corn soup but charge the same price. C(annel 6ifferentiationE Nestle reach their products to the customers through their e&pert market salesman and transportation. So that their products are much available to their respective customers. 0mage #ifferentiationE Nestl/s logo is totally different from its competitors that are greatly accepted by its customers. 7or that reason customer easily identify them in the market which is another effective advantage for Nestle.

People #ifferentiationE Nestle has a large number of employees that are highly educated and trained. In Bangladesh, #11 employees are working in market 6ompany chairmanG 5eter Brakeck2 Letmathe and 6CD 5aul Bulcke are highly educated, wise and e&perienced people. $hey are running this business successfully for a long time. Service #ifferentiationE another advantage for this company is better service for its respective customers from its competitors. $hey provide 9# hours hot line service. +igh %uality checking is maintaining for its customers. Its marketing dept. and 5@ >public relation? dept. are working for finding out customer/s new demands and response toward their products. Selecting an overall positioning strategy/ $he full positioning of a brand is called the brands value proposition2$he full mi& of benefits upHon which the brand is differentiated and positioned. $he value proposition table shows the product position of Nestle in the followingE

5rice 3ore 3ore 3ore for 3ore $he same 3ore for same Less 3ore for less

$he Same

Benefit

Same for less

Less

Less for much less

*ore for moreE 3ore for more positioning involves providing the most upscale product or service and charging a higher price to cover the higher cost. C&actly Nestle is doing that. Nestl/s products provide more benefit and for that Nestle charge higher price than other competitors.Nido ensure nutrition and charge 901 tk for #11 gm.But 7resh, 3arks do not ensure nutrition and charge less than that of Nido.@espectively Nescafe, 3aggi noodles ensure %uality for high price, rather than competitors.

Positioning Statement
!aby Pro#uctsE $o babies who are deprived of proper nutrition, Nido, 6erelac, Lactogen are the nutritious milk 5roduct that give you more nutrition then any other brand because these contain different types of vitamin, mineral etc. NescafeE $o busy people who drink coffee and have little time for taking rest, Nescafe is the coffee that gives you more energy than any other brand because it has the highest level of caffeine, *aggiE $o people, noodles and soup consumer who seek better %uality, 3aggi noodles and healthy soup that gives you proper nutrition than any other brand because it has the best %uality. $heir motto for business is I5$$6 9$$6 5$$6 409EJ

ConclusionE the advent of consumer food products has brought a immense change in the field in the consumers food habit. Nestle has done well to enhance its customers loyalty operating as a market challenger in its industry. Nestle is one of the largest food processing company. $heir products and %uality mainly depends on their e&perience and efficiency. Nestle believe on %uality that leads to good business and good development. It has segmented the market based on certain clustered preferences deploying multi2stage segmentation approach to meet individual needs of the customers. Dffering new products would also close its e&isting products gaps to a great e&tend ensuring satisfaction and loyalty. In our report, we try to present the 3arketing Strategies through segmentation, target marketing and positioning of Nestle Bangladesh Ltd and suggest some recommendations based on the marketing procedure.