Marketing Mix of Nestel

Green University of BangladeshAssignment On: Marketing Mix of Nestle

Course Title: Principles of Marketing

Course Code: BUS-102

Prepared For:

Ms. Rumana Ferdouse

Senior Lecturer

MBA in Marketing (DU)

BBA in Marketing and Finance

Prepared By:

Name ID SignatureMd. Sujan Sarker 130106014

Abdullah Reza 120106045Ashapurna Barua 130106106Farhan Ahmed 130206061

Department of Business Administration

Program of BBA

Green Uni. Of Bangladesh

Submitted Date

20/12/2014

To

Ms. Rumana Ferdouse

Senior Lecturer

Green University of Bangladesh

Mirpur , Dhaka

Dear MS. Ferdouse;

We are writing this cover letter today to accept our assignment “Marketing Mix of Nestle”. On this assignment we try our best to describe huge thing in some page.

For more information please inform us, so we can make it better and submit a date that suits your time frame. Thank you for taking a moment to read my materials and considering me to fill this opening.

Sincerely,

Name ID SignatureMd. Sujan Sarker 130106014Abdullah Reza 120106045Ashapurna Barua 130106106Farhan Ahmed 130206061

Department of Business Administration

Program of BBA

Green Uni. Of Bangladesh

Contains

1. Executive Summary

2. Company Overview

3. Nestle in Bangladesh

4. Objectives

5. Marketing Mix Of Nestle

i. Product

ii. Price

iii. Place

iv. Promotion

6. Conclusion

7. Reference

1. Executive Summary

The report has been prepared as a mandatory requirement of our course Principle of

Marketing. It is the summarized outcome of what we have learned till now in the sectors

Principle of Marketing.

Executive summary presents a clear vision of the report with different titles. After we identify

an existing company, which is Nestle, Bangladesh.  In our report we mainly deal with the new

product line and deigned the packaging and leveling of the fruit juice.   This report will help

us to determine the in-depth information and stand out position in the market.

We sum this philosophy up in four simple words – Good Food, Good Life – reflecting in

everything we do and extending beyond what we make. On our path to being the leading

food, nutrition, health and wellness company, we will continue to ensure that we do

everything we can to build, nurture and develop family and community wherever we are.

Today Nestle is the world’s largest food and Beverage Company with more than 250,000

employees and over 500 factories in 86 countries around the world. Our products have been

available in Bangladesh.

The Nestle Company has not introduced any fruit juice. So it has decided to introduce new

product line of fruit juice, which will be healthy, nutritious an delicious compare to other fruit

juices in our country.

2. Company Overview

In 1867 Henry Nestle, a chemist from Frankfurt who had settled in Vevey, became interested

in infant feeding. To satisfy a clear need , he developed and produced a milk-based food for

babies whose mothers could not nurse them. The new product soon became well-known

worldwide under the name of “Farine Lactee Nestle ( Nestle Milk Food )”.In order to expand

into a broader category and meet more people’s needs, the Nestle Company’s first

diversification occurred in 1905 when it merged with the Anglo- Swiss Condenced Milk

Company (1866). Today, processing milk food is still the company’s chief activity together

with the other products of Nestle family such as chocolates, instant milk-based drinks

culinary products, frozen foods, ice cream, dairy products and infant foods. Nestle is still

primarily concerned with the field of nutrition, but it has also acquired interest in

pharmaceuticals and cosmetics industries. As a result of the company’s initiative and bold

activity, it has grown into a huge organization, employing almost 230,000 people in nearly

500 factories worldwide. Nestle products are now widely distributed on all continents and

sold in more than 100 countries.

3.  Nestle in Bangladesh

Popular Nestle brands entered this part of the sub continent during British rule and the trend

continued during pre-independence days of Bangladesh. After independence in 1971, Nestle

World Trade Corporation, the trading wing of Nestle, sent regular dispatches of Nestle brands

to Bangladesh. By that time  some of the brands such as Nespray, Cerelac, Lactogen, Blue

Cross etc. became household names. In the early eighties Transcom Ltd. was appointment the

sole agent of Nestle products in Bangladesh. In 1992 Nestle and Transcom Ltd. acquired the

entire share capital of Vita Rich Foods Ltd. Nestle took 60 percent while Transcom Ltd.

acquired 40 percent. The name of the company was also changed at this time to Nestle

Bangladesh Limited. In 1998 Nestle took over the remaining 40 percent share from Transcom

Limited. Today Nestle Bangladesh Ltd. is a solid based enterprise.

4. OBJECTIVES:

“Making our customers winners by constantly exceeding their expectations.”

Marketing objectives are compatible with the overall corporate objectives of nestle.

Company’s objective is to be the world’s largest and best branded food manufacturer while

insuring that nestle name is synonymous with the products of the highest quality.

Its chief objectives are:

 To achieve compatibility with international voluntary standards on environmental

management systems.

• To build mutual trust with consumers, governmental authorities and business partners.

• To ensure continuous improvement of nestles environmental performance.

• Conservation of natural resources and minimization of waste.

• Total compliance with the laws.

• To establish the benchmark for good business practice.

• Employing new technologies and processing.

• By committing to resources, both human and financial.

• Measuring the cost and benefits to business of its activities

5. Marketing mix of Nestle

The Marketing mix of Nestle discusses the 4P’s of one of the strong FMCG companies of the

world. The Nestle marketing mix shows Nestle has a strong product line which boosts its

marketing mix. Below are the products, price, placement and promotions of Nestle.

i. Products – 

There are 4 different strategic business units within Nestle which are used to manage various

food products.

Beverages – One of the most known coffee brands Nescafe belongs to the house of Nestle and is

one of the cash cows for Nestle. However, it is not the biggest cash cow. Nestle has a worldwide

distribution and has many different variants. Looking at India, Nestle has also launched Nestea.

Milk and Milk products – Nestle every day, Nestle slim and Nestle Milk maid are some of the

milk and milk based products from the house of Nestle.

Prepared dishes and cooking aides – Nestle has a third category of products which comes into

prepared dishes and cooking aides. The major cash cow of Nestle lies in this segment, which is

Maggi Noodles. Probably one of the most widely sold ready to cook noodle brands is Maggi.

Maggi has a fantastic taste and quality. Thus, it was not a surprise, that Nestle expanded the

Maggi brand to create an umbrella of different products like Maggi pasta, Maggi sauce, Maggi

cubes etc. The maggi range contributes vastly to the bottom line of Nestle.

Chocolates – Nestle has some popular chocolate products, most popular being Nestle Kitkat,

Munch, Milky bar, Eclairs and Polo. The newly introduced Alpino is targeting the gifting

segment in response to various chocolates like Dairy milk and Bournville by Cadbury.

The chocolates segment of Nestle is a star, where the competition is high and the expense is high

but at the same time the market size is huge as well.

As we can see, two major brands of Nestle are a very high contributor to its Brand equity –

Nescafe and Maggi. These are two brands sold across India in small as well as big shops and

super markets. There have been many competitors for these products, like Bru for Nescafe and

Top ramen and Sun feast Yippie against maggi.

The appreciable factor in Nestle is that quality maintenance of products is up to mark and there

are hardly any complaints about Nestles products in the market. This is a major achievement for

a company which relies majorly on food products.

ii. Price – 

The price is dependent on the market of each individual product. For example, Nescafe and

Maggi being the clear leaders are priced with higher margins for the company as compared to

competition. This is because the product quality is good enough and a bit of skimming price will

not cause the customer to switch brands.

The strength of pricing for Nestle comes from its packaging or consumption based pricing. For

Nescafe as well as Maggi, Nestle offers a lot of sizes and package options. In supermarkets, you

can even find a 16 packet maggi whereas in small retail shops, you can find 5 rs maggi.

Thus, with the variety available, customer can make his own choice based on his consumption.

In other products like Kitkat and Munch, due to tough competition from other companies, Nestle

offers competitive pricing. You will find that nestle will be similar priced to many of Cadbury’s

Products in the chocolate segment.

iii. Placement –

 Nestle follows the FMCG strategy of distribution which involves breaking the bulk/ extent. The

typical distribution strategy of Nestle is as follows.

Manufacturing >> C & F agent >> Distributors >> Retailers >> Consumer

Manufacturing >> Bulk buyers >> Consumer

These are the two different forms of distribution which Nestle has. It is typical of any FMCG

company. However, the Nestle channel is known to be strong with a good marketing and sales

network for channel distribution.

On top of it, Nestle regularly introduces trade discounts and various tactics to keep the channel

motivated. The major challenge is in the distribution of Maggi which is the most in-demand

product along with Nescafe. Due to these two products, Nestle is able to drive other products in

the market as well. Thus, on purchase of one weak product, the distributor might get a discount

on the stronger product or vice versa.

The challenge for Nestle is in the chocolate segment where it faces stiff competition from

Cadbury and hence selling the chocolates becomes difficult. Kitkat might have its own brand

positioning, but it is not better than Dairy milk. Thus, converting retailers to sell Nestle instead

of Cadbury is the toughest task for Nestle. This is converted mainly through promotions.

iv. Promotions–

One of the most widely known tunes is the Nescafe tune. It was one of the best advertising

campaigns and was launched at least 2 decades back. However, that campaign brought Nescafe

strongly in the market.

On the other hand, Nestle’s brand was pushed by the excellent product quality of Maggi and the

witty and innovative campaigns of Maggi. Where Nescafe focuses on value and the good things

in life, Maggi focuses on moments you had with your Maggi. The recent campaign

was completely focused on your maggi story, where people had to come out with various

innovative ways that they had their maggi.

Promotions for other products too are done smartly. Kitkat focuses on “Take a break” and has

done some good marketing for the same. Kitkats website too is very innoative and shows nothing

but asks the visitor to take a break and have a Kitkat. The major push expected of a FMCG

company is in sales promotions at the ground level. This is where Nestle really rocks. Nestle

focuses on its strength which is Maggi, Nescafe and Kitkat which are the most

promoted brands in the market on ground level.

Besides this, Nestle regularly uses TVC’s and ATL marketing. It is also present online through

some smart creative. Overall, Nestle is a brand which has strong products as well as strong

marketing, and hence the brand has a very high brand recall value.

We hope that Nestle keeps bringing in good products and keeps maintaining the quality of the

products it already has.

6. CONCLUSION

Nestle has seen a strong start to 2008, partly thanks to its strategy of increasing product prices

quickly in line with commodity price increases. Through internal research and development at

Nestlé there have also been significant advances in the environmental impact of refrigerants

and packaging. Without compromising product quality there was a reduction of 392 000

tonnes of packaging material between 1991 and 2008. Evidence shows that Nestlé advertised

and still advertises its formula as a risk-free substitute (or even a preferable alternative) to its

products, resulting in increased use.

7. Reference:

http://www.assignmentpoint.com/business/marketing-business/assignment-on-nestle-food-

products-in-bangladesh.html

https://www.google.com.bd/search?

q=marketing+analysis+of+nestle+company+in+bangladesh&oq=marketing+analysis+of+nest

le+compa+ny+inbangladesh&aqs=chrome..69i57.163027j0j7&sourceid=chrome&es_sm=93

&ie=UTF-8#q=marketing+4p+analysis+of+nestle+company+in+bangladesh&start=10

http://www.marketing91.com/marketing-mix-nestle/

http://www.slideshare.net/AlifRussell/marketing-startegy-of-nestle-bangladesh-ltd