1. Green University of Bangladesh
Assignment On: Marketing Mix of Nestle
Course Title: Principles of Marketing
Course Code: BUS-102
2. Prepared For:
Ms. Rumana Ferdouse
Senior Lecturer
MBA in Marketing (DU)
BBA in Marketing and Finance
Prepared By:
Department of Business Administration
Program of BBA
Green Uni. Of Bangladesh
Submitted Date
20/12/2014
Name ID Signature
Md. Sujan Sarker 130106014
Abdullah Reza 120106045
Ashapurna Barua 130106106
Farhan Ahmed 130206061
3. To
Ms. Rumana Ferdouse
Senior Lecturer
Green University of Bangladesh
Mirpur , Dhaka
Dear MS. Ferdouse;
We are writing this cover letter today to acceptour assignment “Marketing Mix of
Nestle”. On this assignment we try our bestto 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,
Department of Business Administration
Program of BBA
Green Uni. Of Bangladesh
Name ID Signature
Md. Sujan Sarker 130106014
Abdullah Reza 120106045
Ashapurna Barua 130106106
Farhan Ahmed 130206061
4. 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
5. 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.
6. 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.
7. 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.
8. 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.
9. 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.
10. 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
11. 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+banglades
h&oq=marketing+analysis+of+nestle+compa+ny+inbangladesh&aqs=chrome..69i57.163027j
0j7&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
