TERM PAPER

MARKETTING PLANNING OF

AHSANULLAH UNIVERSITY OF SCIENCE AND TECHNOLOGY

TERM PAPER
MARKETING PLANNIG OF NESTLE

Submitted To:
Prof. Sirajuddaula Shaheen Dean, Faculty of Business & Social Science

Submitted By:
Jesmin Akter Juthi (ID no. 10.01.02.020) Farah Tasneem (ID no. 10.01.02.023) Sharika Nahid (ID no. 10.01.02.039)

Date of Submission:02 .02.2012

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2nd Feb, 2012 Prof. Sirajuddaula Shaheen Dean, Faculty of Business and Social Sciences Ahsanullah University of Science and Technology. Dear Sir, I would like to thank you for giving us a term paper to prepare a realistic paper work about Marketing Plan of an organization and we chose Nestle. Without your help and advice it was quite impossible for us to prepare this term Paper. Your help and advice make us work much easier. While preparing this term Paper we got to know various things of the marketing plan of an organization which have increased our analytical skills. Though, as a member of group, Im proud to say that our term Paper is a result of team work and we are really grateful to you for giving a chance to form our group & charging up our team spirit. I will be indebted to you if you have a look on our term Paper and consider our faults and let us know what will be the way to make it more effective. Thank you. Sincerely, On behalf of group Sharika Nahid ID~ 10.01.02.039

Acknowledgement
We would like to give thanks to those people who helped us to prepare this report and we are very much grateful to them for their cordial assistance, helpful co-operation and essential suggestion. At first we would like to express deep gratitude to our honorable course instructor Prof. Sirajuddaula Shaheen, Dean, Faculty of Business and Social Science, Ahsanullah University of Science and Technology, for his sincere guideline and valuable remarks, thoughtful comments and essential suggestions. He inspired us and gave us encouragement to complete this report. We would also like to express our gratitude to Moasser Ahmed, Marketing Officer of Nestle who helped us to collect information for preparing our term paper. We are really grateful to him.

Origin of the Report

Prof. Sirajuddaula Shaheen, Dean, Faculty of Business and Social Science, Ahsanullah University of Science & Technology, the honorable course instructors of BBA-221 Marketing Management, assigned us to prepare a term paper about the Marketing Planning of Nestle. The date of submission of this report is 2nd February of 2012.

Objective
The primary objectives of preparing the report are: To create a knowledge base for future as it is an outcome of working in an organization for real

The secondary or business objectives of this report are: To fulfill a partial requirement of completing our course. To represent the brand activation activities which are designed to increase the brand image To present an improve and increase of brand awareness through product sampling To signify how an organization helps its consumers try products which they havent tried before; thus increasing scopes for branding through product sampling To indicate how consumer sales gets influenced through activation

Methodology
Sources of collecting data: The report is based on data & information, which have been collected from various sources. They are stated below: a) Primary source - Interview - Search through the internet b) Secondary sources - Various books related with Marketing. -Method of Collection Data

Limitation
The data collection was time consuming as timeline was shorter but the data collection process required a huge amount of time. Due to the company policy of Nestle Bangladesh Limited, few confidential but important data might not be presented which could actually precise the report accordingly.

Table Of Contents
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1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23.

Executive Summary About Nestle Nestle in Bangladesh Market Summary Objective Key to Success Marketing Strategy Marketing Demographics Market Needs Market Trends Market Growth SWOT Analysis Competition Product Offering Mission of the company Target Market Positioning Marketing Mix Market Research Breakeven Analysis Sales Forecasting Conclusion Bibliography

7 8 9 10-11 11 12 13 13-14 14-15 15-16 16-17 17-19 19-20 21-23 24 24 25 25-29 30 30-31 32-34 35 36

Executive Summary
The term paper is prepared for giving us a basic idea of marketing plan applied by Nestle Bangladesh Ltd. Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals. While strategy is the action plan to do something and hence, Marketing Strategy is the managerial process of developing and maintaining a viable fit between the organizations objectives, skills and resources and its changing market opportunities. The aim of marketing strategy is to shape the companys business and products so that they yield targeted profit growth. The term paper also very useful to have a practical idea and over viewing, product positioning, the marketing sector also forecast on current mission, vision, objective goals. Find out their strength, weakness, and opportunities, threats defining their market segmentation, target market and key marketing areas. The consumers of Nestle Bangladesh Ltd show interest on Nestle products because of trust on quality of Nestle, at the heart of which there are qualitative products and its long term commitment to deliver better products to consumer. Today Nestl Bangladesh Ltd. is a strongly positioned organization. The Company will continue to grow through our policy of constant innovation and renovation, concentrating on our core competencies and our commitment to high quality, with the aim of providing the best quality food to the people of Bangladesh.

About Nestle
Nestl with headquarters in Vevey, Switzerland was founded in 1866 by Henri Nestl and is today the worlds biggest multinational food and beverage company. Sales at the end of 2005 were CHF 91 bn, with a net profit CHF 8 bn. Nestl employs around 250,000 people and has factories or operations in almost every country in the world. The principal shareholder of Nestl is Liliane Bettencourt, the worlds wealthiest woman. The companys strategy is guided by several fundamental principles. Nestls existing products grow through innovation and renovation while maintaining a balance in geographic activities and product lines. Long-term potential is never sacrificed for shortterm performance. The companys priority is to bring the best and most relevant products to people, wherever they are, whatever their needs are all through their lives. Nestl is the worlds largest food group, not only in terms of its sales but also in terms of its product range and its geographical presence. Nestl covers nearly every field of nutrition: infant formula, milk products, chocolate and confectionery, instant coffee, ice-cream, culinary products, frozen ready-made meals, mineral water etc. Nestle is also major producer of pet food. In most of these product groups and in most markets, Nestl is the leader or at least a strong number two. Nestl is a much focused company with more than 94 percent of the sales coming from the food and beverage sector. Many of their brand names are well known worldwide. Nescafe, Nido, Maggi, Polo, Smarties, Milo, Lactogen, Cerelac, Perrier, Friskies, Kit Kat, Crunch etc. Some of their products have been broken records like: 3,000 cups of Nescafe are consumed every second and Kit Kat merited an entry in the Guinness Book of World Records as the worlds bestselling chocolate is Kit Kat.

Nestle In Bangladesh
Nestl Bangladesh Limited started its first commercial production in Bangladesh in 1994; in 1998 Nestl S.A. took over the remaining 40% share from Nestls local partner when Nestl Bangladesh became a fully owned subsidiary of Nestl S.A. The managing Director of Nestl Bangladesh Ltd. is Mr. Aldo Siegrist. The Companys strategy is guided by several fundamental principles. Nestls existing products grow through innovation and renovation while maintaining a balance in geographic activities and product lines. Long-term potential is never sacrificed for shortterm performance. The Companys priority is to bring the best and most relevant products to people, wherever they are, whatever their needs, throughout their lives.[2] Nestl Bangladeshs vision is to be recognized as the most successful food and drink company in Bangladesh, generating sustainable, profitable growth and continuously improving results to the benefits of the shareholders and employees. The corporate head office of Nestl Bangladesh Ltd. is situated in one of the finest locales of Bangladesh, Gulshan. The address is the following: Gulshan Avenue, Dhaka-1212 Tel: 02-9882759-65 Fax: 02-8822035 Its factory is situated at Sripur, which is 55 km north of Dhaka. The factory produces instant noodles, cereals and repacked milks, soups, beverages and infant nutrition products. Today Nestl Bangladesh Ltd. is a strongly positioned organization. With their policy Nestl is confident that it will continue to grow in terms of integrated development, concentrating on their core competencies and their commitment to high quality. Nestle also aims of providing the best quality foods to the people of Bangladesh.

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Market Summary
Form of voluntary business principles is beneficial in order to ensure that the highest standards are met throughout the organization. Nestl is conscious of the fact that the success of a corporation is a reflection of the professionalism, conduct and the responsible attitude of its management and employees. Therefore recruitment of the right people and ongoing training and development are crucial. Nestl continues to maintain its commitment to follow and respect all applicablelocal laws in each of its markets. Since Henri Nestl developed the first milk food for infants in 1867, and saved the life of a neighbors child, the Nestl Company has aimed to build a business based on sound human values and principles. While Nestl Corporate Business Principles will continue to evolve and adapt to a changing world, its basic foundation is unchanged from the time of the origins of the Company, and reflects the basic ideas of fairness, honesty, and a general concern for people. Nestl is committed to the following Business Principles in all countries, taking into account local legislation, cultural and religious practices: Nestls business objective is to manufacture and market the Companys productsin such a way as to create value that can be sustained over the long term for shareholders, employees, consumers, and business partners. Nestl does not favor shortterm profit at the expense of successful long-term business development. Nestl recognizes that its consumers have a sincere and legitimate interest in the behavior, beliefs and actions of the Company behind brands in which they place their trust and that without its consumers the Company would not exist.

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 Nestl believes that, as a general rule, legislation is the most effective safe

guard

of

responsible conduct, although in certain areas, additional guidance to staff in the office.

Objectives
Marketing Objective: Nestles marketing objective at all levels is to manufacture and the market the companys product in such a way as to create customer life time value so that it can be sustained over the long term for shareholders, employees, consumers, business partners, and the large number of national economies in which Nestl operates. Achievements Nestl Bangladesh Limited has succeeded immensely in establishing itself as a high quality food industry in Bangladesh. As suggested by Hasan Mehdi, the marketing officer of Nestl following are the prime achievements: First to launch high quality infant nutrition products in Bangladesh. First to produce instant noodles under local manufacturing in Bangladesh. Nestl firmly emphasizes on real internal growth and it is growing from year to year. Nestle is also proud of the fact that its growth of sales is sustainable, is increasing always. It measures its achievements in terms of its mass profit and acquiring equity in the market. Its main purpose is customer acknowledgement, the fact that consumers realize that nestle is all about quality. The growth of sales had never degraded for Nestl. Financial Objective: The main financial objective of Nestle is1) Increase in profit margin by 1 percent per quarter through efficiency and economy of sales gains. 2) A double to triple digit growth rate for the first three years.

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Keys to Success
Nestles key factors are giving in below: Strong Brand Relationship with consumer

Research and Development Innovation and Renovation Product Avaibility Building relations with medical and scientific community In light of Nestl Bangladesh Ltd., we have tried to analyze the following components of marketing strategy through different theories and applications. There are also some other major factors:

Social:
Nestl makes an effort to integrate itself as much as possible into the cultural and social values of the different countries. During operation in Bangladesh Nestl has launched two products which explains how Nestl values social and cultural factors, Recently Nestl Bangladesh has launched Halim Mix which was meant to be distributed only in Bangladesh. Another example is Maggi Noodles itself. It has a very big market both in Malaysia and Bangladesh but the one distributed in Bangladesh has an added taste that is, it is spicier than the one in Malaysia. This has been done to match the taste buds of Bangladeshi consumers.

Ethical:
Although Nestl faces ethical dilemmas in commercialization of its products, it does not consider its high price to be an ethical crisis. This is because they are not ready to compromise their quality in order to make their product widely available to all.

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Marketing Strategy
Nestl is more people, product and brand oriented than system oriented. Nestl favors longterm successful business development and even to greater extent, customer life-time value. At the same time Nestl does not lose sight of the necessity to improve in terms of quality, price and distribution. However, Nestl remain conscious of satisfying the wants needs and demands of its consumers. It is also aware of the need to generate a sound profit annually. Nestl seeks to earn consumers confidence, loyalty and preference and anticipate their demands through innovation and renovations. Therefore Nestl is driven by an acute sense of performance adhering to quality and customer satisfaction. Nestl is as decentralized as possible within its marketing strategic definitions requiring increasing flexibility. Nestl is always committed to the concept of continuous improvement of its activities and customer satisfaction through market segmentation, positioning and target marketing. The effective formulation of their marketing strategy depends on the proper match between the three key elements: Consumer Quality Competition. One thing to be mentioned is that the match between consumer and quality is most important for Nestl. Besides there are some other concerns that effect the marketing strategy. This concerns are where to compete, how to compete and when to compete. Nestle is able to address all of the different segments within the market because although each segment is distinct in term of its users and equipment, its products are useful to all of the different segments.

Market Demographics
Nestl is targeted towards the consumer market. So Nestl food products can be treated as consumer products. The major factors which play key role in the process of consumer segmentation are: 1) Demographic( age, income etc) 2) Consumption Pattern 3) Social Economic factors 4) Brand Loyalty Patterns
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5) Perceptual Factors 6) Cultural Factors Proper consideration of the given factors results in effective consumer segmentation for Nestl. Since the product range is expensive in Bangladesh; Hasan Mehdi, the Marketing Officer, says, we have to concentrate strongly on income of consumers.

Market Needs
Nestle is committed to offering consumers high quality food products that are safe, tasty and affordable. The main theme of Nestle Good Food, Good Life is a symbol of this commitment. The company seeks to fulfill the following benefits that are important to its consumer. Quality craftsmanship Quality is the foundation of Nestls success. Every day, millions of people all over the world show their confidence in Nestl by choosing their products. This confidence is based on their quality image and a reputation for high standards that has been built up over many years. Every product on the shelf, every service and every customer contact helps to shape this image. A Nestl brand name on a product is a promise to the customer that it is safe to consume, that it complies with all regulations and that it meets high standards of quality. Customers expect them to keep this promise every time. Under no circumstances will they compromise on the safety of a product and every effort must be made to avoid hazards to health. Likewise, compliance with all relevant laws and regulations is a must and is not negotiable. People, equipment and instruments are made available to ensure safety and conformity of Nestl products at all times. The effort is worth it. Companies with high quality standards make fewer mistakes, waste less time and money and are more productive. They also make higher profits. Quality is the Nestls most successful product. It is the key to their success, today and tomorrow.
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Customer Service

Nestl regards its consumers as its most valuable asset involvement at all levels start with open communication whether it deals with customer satisfaction or their needs and wants. Nestl recognizes that its consumers have a sincere and loyal interest in the behavior, beliefs, and actions of the company behind brands in which they place their trust. With it consumers the company would not exist. Nestl satisfies consumers in many countries and cultures throughout the world. According to the Marketing officer Nestle Bangladesh Ltd, customer satisfaction varies from one aspect to another. In terms of product delivery consumers do not give similar responses. He explained with the simple example, Nescafe for some is refreshment, for others it is relief. At the end of the day, Nestl consumer are 100% satisfied with the high quality of Nestl products.

Market Trends
Nestle will distinguish itself by marketing products not previously available in food market. It also believes in maintaining regular contact with the consumers. This applies both to how they present their products and to how they address their consumers questions and concerns. When Henri Nestl prepared his first boxes of infant formula for sale, he put his address on the packages so people would know where to go if they had questions. Today, the Consumer Relationship Panel with the words Talk to Nestl expresses the same commitment. This is why they have a worldwide Nestl Consumer Services network devoted to caring for their consumers. Nestls people have expertise in a wide range of areas such as nutrition, food science, food safety and culinary expertise. They provide the prompt, efficient and high quality service that consumers expect from Nestl. In addition, the expertise teaches them talk with consumers and above all, to listen. Listening helps them to understand what people want. Nestl uses the insights gained from relationships with consumers to drive product development. Nestl care for Nestls consumers because its success depends on meeting their needs and expectations. Through listening and understanding, it can make products that they will want to use all through their lives.
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Although Nestl is very conscious of its role in communicating responsibility to consumers, Nestl in Bangladesh does not really perform much consumer communication. As noted their marketing officer, For Nestl, our consumers are our distributors. Nestl has a separate department designated as Consumer Relation Department where the purpose is served. A P.O.-Box had been assigned where consumers can send complaints, mails or any enquiries directly in order to reach Nestl. This can also be termed as Post Purchase Service. Consumer communication is not much practiced in Bangladesh because at the moment, Nestl does not have any organized internal database of its consumers. Hence, it can be said that Nestl hardly takes any initiatives in case of consumer communication. However, for specific brands, such as Milo, Nestl Bangladesh has an organized database of 1000 consumers who are the core that is final consumers of Nestl. Whenever, there are any upcoming new products, Nestl sends these loyal consumers newsletters, leaflets, free samples and even feedback questionnaires. This is the only consumer communication that Nestl does in Bangladesh; also consider to be Direct Marketing. For any other products Nestl never performs consumer communication. Nestle believe whoever is loyal; Nestl should do their best to retain their loyalty because if this loyal consumers become disloyal their word-of mouth may contaminate other eager consumers. So, Nestl emphasizes more on retaining loyalty rather than attracting new consumers.

Market Growth
Nestle has recorded an increase in sales for the last nine months of 2011, driven by doubledigit organic growth in emerging markets. Nestle plc, maker of nutritional, health and wellness product recently made public its first quarter (Q1) forecast result 2012 on the floor of the Nigerian Stock Exchange, showing that it is eyeing N23 billion turnover, its First quarter, 2012. The company also expects a N3.6 billion profit before tax, just as it expects a N2.7 billion profit after tax in the same period of 2012.

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A close look at the companys most recent result, show that the company made a N70 billion turnover in Q3 2011, compared to the N57 billion, it made in the corresponding period of 2010, indicating a significant 24 percent rise. As part of efforts to compete favorably a position of its growth, the company has a plan of opening new branches throughout the country. It is a key to Nestls growth in Bangladesh will be initially dedicated to the productions of Maggi products. Nestl Bangladeshs role is to be the largest culinary manufacturing operation on the country. Products adapted to meet the specific requirements of emerging consumers in terms of price, accessibility, format and nutritional benefits and they are a key driver for the future growth of Nestls operations in Bangladesh.. Many of the Maggi products in Bangladesh are iodine fortified in order to help combat iodine deficiencies among the local population. In a tough environment, Nestle continued to build their capabilities and positions for the future while maintaining strong growth across regions and categories. The constant renovation of their existing product portfolio together with their strong pipeline of gamechanging innovations resulted in many market share gains. A high rate of innovation also requires significant consumer-facing marketing support. For the year as a whole, in spite of input cost pressures, they expect to slightly over-perform against our long-term organic growth range of 5-6% and continue to strive for a margin improvement in constant currencies.

Swot Analysis of Nestle

STRENGTHS ----------------- TO BUILD ON WEAKNESESS ----------------- TO COVE ON OPPORTUNITIES---------------TOCAPTURE THREATS--------------------------TO DEFEND ON

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STRENGTHS The greatest strength of nestle is that it includes a culture that is team focused and an open door policy. Nestle focus on collectivism and performance orientation attitude which encourages employees to work harder. Another thing is high-level of market share and that people all over the world trust and recognizes Nestle as a big brand name. Strength is that people trust on Nestle. It looks at achieving higher volumes by renovating existing products and innovating new products. Strength is that they are low cost operators which allow them to not only beat competition but also edging ahead operating excellence, innovation, renovation, product availability and communication are major strengths. IT is an important aspect that people all around the world are becoming more conscious about health, thats why they prefer Nestle. The only brand in the area maintaining its quality and taste and having the same impact on its consumer. Economical Pure food in market Strong Brand name WEAKNESS One major weakness of Nestle is that it is entering into markets that are already mature and can give a tough competition to new entrants. Nestle Plain Yogurt has proved to be a Nestle weakness because it has been unable to make its market place in USA. But Nestle by analyzing the sensitive areas can overcome its weaknesses. Communication is week Lack of awareness

OPPORTUNITIES Nestle in Bangladesh has a great opportunity for expanding its markets because in Bangladesh there is a large ready market of food and beverages due to trends of eating and

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the increasing .I t also has opportunities largely in China and India as well. Through proper marketing research Nestle can cash on to these opportunities. Concentrating on these areas can increase sales Increase in product line. THREATS Nestle is facing the threats by worldwide community due to its violation of international marketing standards. Many conferences and campaigns have been held against Nestle in this regard which can damage the name and trust of its customers. Another threat is due to the increasing popularity of its competitor OLPERS in local and international markets.

Segments are being shared by competitors Uncertain condition will effect sale

Competition
Nestl supports free enterprise and therefore competes fairly and ethically and expects other companys right to do so. The competition structure for Nestl in Bangladesh is very limited whereas it faces bigger challenges in other countries such as India, china, etc. Still Nestl tends to face competition in the food market. In terms of quality and product square is the biggest challenge and threat. Pran is the strong contender in terms of turnover. One strong upcoming challenge for Nestl is BD Foods. When it comes to beverage and drinks Nestl consider Ispahani and Coca-cola to be strong players. Although 70-80% consumers prefer Maggi noodles, Coca cola seems to be catching up fast. In terms of competitive advantage, quality seems to be the foremost tool for Nestl. Although Nestl tends to face criticisms in terms of price and number of products sold, in comparisons to local competitors, Nestl intends to abide by their policy which never attempts to compromise quality. Nestle live in a competitive world and Nestl must never forget that its customers have a choice. If they are not satisfied with a Nestl product, they will switch to another
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brand. Its goal, therefore, is to provide superior value in every product category and market sector in which it competes. The pursuit of highest quality at any price is no guarantee for success, nor is a single-minded cost-cutting approach. Lasting competitive advantage is gained from a balanced search for optimal value to customers, by simultaneous improvement of quality and reduction of cost. Success can never be taken for granted. Nestl must watch and learn from its competitors. If they do something better, Nestl must improve its own performance. Nestl can achieve competitive advantage through quality.

Chart-Competitors and Market Share of NBL

Hard work, Motivation, Ready to accept challenges, giving consumer most preference and no compromising in quality have made Nestle superior than its competitors.

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Product Offering
Product is something that is offered to a market for attention, acquisition, use or consumption that might satisfy a need or want. Product is set of tangible and intangible attributes, including packaging, color, price, manufacturing, prestige, retailing, services, etc. which the buyer may accept as offering want is satisfied. Nestl is offering the products, which comes under the category of fast moving consumer good. Nestl is committed to offering consumers high-quality food products that are safe, tasty and affordable. The Nestl Seal of Guarantee is a symbol of this commitment.

Current Product line of Nestle

Nutrition Products: Cerelac, Lactogen, Cereal etc.

Performance Nutrition: Power Bar, Nutren, Neston Dairy Products: NIDO Fortified, 2+ and 3+ Nestl Corn Flakes, KOKO Crunch & Honey Gold Flakes

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Culinary Products: Maggi Noodles, Maggi soups.

Beverage Products: Nescafe Classic, Nestea premium ice tea.

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Sugar and Chocolate Confectionary: Kitakat, Polo, Acti-V etc.

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Mission Of The Company

Theme: Good Food for Good Life Mission Statement: Nestl is dedicated to providing the best foods to people throughout their day, throughout their lives, throughout the world. With our unique experience of anticipating consumers needs and creating solutions, Nestle contributes to your well-being and enhances your quality of life. Vision: Nestl Bangladeshs vision is to build Nestl as the respected and trustworthy leading Food, Beverage, Nutrition, Health and Wellness Company in Bangladesh ensuring long term sustainable and profitable growth. The company is very much focused to ensure that the vision is implemented in every aspect. The tagline is: To be the very best Food, Beverage and Nutrition Company in Bangladesh.

Target Market
Nestls main focus is the socio-economic class, which is the company wide target. Nestls potential consumers are those who acknowledge that Nestl is all about quality and most importantly those who can afford the products. The strategy for selecting their target market is the following: Income level (> 10000 Tk) Education Quality realization Positioning strategy Nestls positioning strategy comprises of the three steps: Identifying the right competitive advantage Choosing the right competitive advantage Selecting the right competitive advantage

The company then effectively communicates and delivers the chosen position to the market. Nestl strongly believes that their products are specific and so are the product benefits. This, Hasan Mehdi, the marketing officer, termed as Benefit Positioning.

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Positioning
After identifying the segments and then selecting one or more to target, the Nestle Company then must next decide what position to pursue. A position is the way a firms product, brand, or organization is viewed relative to the competition by current and prospective customers. When positioning a product the marketer wants to convey benefits most desired by the target market.

Marketing Mix
Nestls marketing mix is comprised of the following approaches to pricing, distribution, advertising and promotion and consumer service.

1) Pricing:
Price is the amount of money and/or other items with utility needed to acquire a product. And utility is an attribute with potential to satisfy the wants. A product price influences wages, rent, interests, and profits. Some prospective customers are interested in low prices, where as another segment is more concerned with other factors, such as service, quality, value, and brand image. Consumers perception of quality may be influenced not just by price but also by such factors as store reputation and advertising. Pricing objectives may be:

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Profit- oriented:
To achieve a target return To maximize profit

Sales-oriented
To stabilize prices To maintain or increase market share

Status quo-oriented:
To stabilize the prices To meet competition

In developing a marketing program, management has to decide whether to compete primarily on the basis of price or the non-price elements of the marketing mix. One price strategy: Nestle is using this special price strategy i.e. one-price strategy in which the company charges the same price to all similar customers who buy identical quantities of a product. But for different quantities the company is offering different price. Even prices are set for the Nestle products.

2) Distribution:
Distribution of products from the factory to the customer involves transport and storage. Efficient management of the distribution system is essential to preserve the safety and quality of Nestls products, to ensure a high level of customer service, and to meet its commitment to environmentally sound business practices.

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3) Advertising and Promotion:

The Company focuses on its corporate image that Nestl is all about quality. It hardly emphasizes on promotion and publicity because consumers in Bangladesh already know that ensuring product quality is what Nestl focuses, not price. Nestl mainly focuses the two possible advertising objectives: Informative advertising Persuasive advertising Since Nestl is already an acknowledged and quality food product company in Bangladesh; it does not emphasize much on publicity and promotion. Here are a few points to ponder about advertising done by Nestl Bangladesh Ltd.: Nestl cannot advertise for infant milk. Mass advertising is done for new products only Advertising and promotion is done by product wise15% of marketing communication budget is spend for publicity More indulged into product sampling and test marketing Nestl had performed test sampling in the year 2003 on Nescafe. Nestl Bangladesh Ltd. has specialized agencies for their promotional purposes. They are the following: Product name advertising agencies Nescafe Unitrend Milo (25%) Unitrend Maggi ProtishobdoPolo ProtishobdoPolo Nestl is associated with the following profiles of major media types: Medium Responses Newspapers (e.g. Prothom Alo) Small Pass along audience, aprox 1 lakh. High cost per exposure.TV Reach up to 20 lakh audience Billboards Very few Local Magazines Negligible Outdoor -Internet N/The given table suggests that Cost per Contact is better in television advertisement than in newspapers and other media for Nestl. Nestl also believes that television receives better clutter, fleeting, exposure and a mass audience for promotion, which is only to be considered for Nestl Bangladesh Ltd.has main advertising is done on television and to a very little extent, newspapers. The emphasis is on building a corporate image about maintaining their high quality. There are also considerations underway to promote upcoming brands and products to extend their promotional activities by putting up more billboards, posters, flyers, and banners. They will start internet as their medium from year 2005. These decisions are carried out by the marketing department. Hence, Nestl Bangladesh is trying to integrate their promotional activities and have an integrated marketing approach.

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Fig: Promotional activities of Nestle for brand awareness

4) Customer Service:
Nestle satisfy its consumer throughout the world. Nestle has recognized that its consumer has a sincere and loyal interest in the behavior and belief and action of the company behind brand in which they have placed their trust. Without its consumer, the company would not exist. According to the marketing officer of Nestle Bangladesh LTD consumer satisfaction varies from one aspect to another. In term of product delivery consumer do not give similar responses. He explained with simple example, Nestle for someone is refreshment, for others it is relief. At the end of the day, Nestle consumers are 100% satisfy with Nestle products.

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Fig: Different Nestle Products

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Marketing Research
Nestle Bangladesh LTD is able to test all of its products with all of its dedicated located all over the country. They also maintain a significant research and development budget as a percentage relative to sales to spur future product developments. The role of the Nestl Research Center is to help fulfill Nestl's vision of Good Food, Good Life, with good food central to a balanced, healthful lifestyle for consumers. Knowledge on Nutrition and Health, Food Science, Food/Consumer Interaction and Food Quality and Safety are combined to develop Good Food as a source of Good Health throughout life. Thanks to the scientists of diverse disciplines working together at the Nestl Research Center, their research discoveries and scientific advances translate into useful applications for the company and a host of innovative products for consumers. NRC scientists advocate to be at the forefront of their scientific disciplines, to find the best science anywhere in the world and to apply this science for the health and delight of consumers. The multifaceted science at NRC has an ever-increasing role in improving the quality and benefits of food for people everywhere. With a research heritage going back to the very beginnings of food science, Nestl scientists continue to lead the field in food and nutrition research. Field in food and nutrition research. Learn more about Nestl Research Center projects and external collaborations in the At a Glance section.

Break Even Analysis

A company's break-even point is the amount of sales or revenues that it must generate in order to equal its expenses. In other words, it is the point at which the company neither makes a profit nor suffers a loss. Calculating the break-even point (through break-even analysis) can provide a simple, yet powerful quantitative tool for managers. In its
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simplest form, break-even analysis provides insight into whether or not revenue from a product or service has the ability to cover the relevant costs of production of that product or service. Nestls Managers use this information in making a wide range of business decisions, including setting prices, preparing competitive bids, and applying for loans.

In Nestle, they mainly focusess on the variable expenses to reach the break-even point.

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Sales Forecasting
Sales Forecast: A forecast of a firm's unit and dollar sales for some future period; it is generally based on recent sales trends plus forecasts of the economic prospects for the nation, region, industry, and so forth. The Sales Forecast generally starts with a review of sales during the past five to ten years, expressed in a graph such as that in the Figure below. The graph could have contained 10 years of sales data, but Nestle focuses on sales figures for the latest five years because the firm's studies have shown that its future growth is more closely related to recent events than to the distant past. Sales for 2011are forecasted to rise 10% above the 2010level; the 10% growth is the (approximate) average growth between 2006and 2010.
Nestle sales product sales in Millions of $

4 000 3000 2000 1000 0 2005 2006

2011

2007

2008

2009

2010

2011

2012

From the sales forecasting Chart we can say that, Nestle had its ups and downs during the period from 2005to 2011In 2005, Nestle resulted in low production, which caused sales to fall below the level.. Then, a bumper crop in 2000 pushed sales up by 15 percent, an unusually high growth rate for a mature food processor. Based on a simple growth analysis, Nestls forecasters determined that the average annual growth rate in sales over the past five years was forecast 9.1 percent. On the basis of this historical sales trend, on planned new-product introductions, and on Nestle; forecast for the economy, the firm's planning committee projects a 10 percent sales growth rate during2010, to sales of $3,300 million. Here are some of the factors Nestle considered in developing its sales: 1. Nestle Food Products is divided into five divisions: Nutrition Products, Dairy Product, Culinary Products, beverage products, Sugar and Chocolate Confectionary. Growth is seldom the same for each of the divisions, so to begin the forecasting process, divisional
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projections are made on the basis of historical growth, and then the divisional forecasts are combined to produce a "first approximation" corporate sales forecast. 2. 3. Next, the level of economic activity in each of the company's marketing areas is forecasted. Nestls planning committee also looks at the firm's probable market share in each distribution territory. Consideration is given to such factors as the firm's production and distribution capacity, its competitors' capacities, new-product introductions that are planned by Nestle or its competitors, and potential changes in shelf-space allocations, which are vital for food sales. Pricing strategies are also considered-for example, does the company have plans to raise prices to boost margins, or to lower prices to increase market share and take advantage of economies of scale? Obviously, such factors could greatly affect future sales. 4. Nestls foreign sales present unique forecasting problems. In particular, its planners must consider how exchange rate fluctuations would affect sales. Nestle must also consider the effects of trade agreements, governmental policies, and the like. 5. Nestls planners must also consider the effects of inflation on prices. Over the next five years, the inflation rate for food products is assumed by Nestle to average 3 to 4 percent, and Nestle plans to increase prices, on average, by a like amount. In addition, the firm expects to expand its market share in certain products, resulting in a 4 percent growth rate in unit sales. The combination of unit sales growth and increases in sales prices has resulted in historical revenue growth rates in the 8 to 10 percent range, and this same situation is expected in the future. 6. 7. Advertising campaigns, promotional discounts, credit terms, and the like also affect sales, so probable developments for these items are also factored in. Forecasts are made for each division, both in the aggregate and on an individual product basis. The individual product sales forecasts are summed, and this sum is compared with the aggregated division/ forecasts. Differences are reconciled, and the end result is a sales forecast for the company as a whole but with breakdowns by the three divisions and by individual products. If the sales forecast is off, the consequences can be serious. First, if the market expands more than Nestle has geared up for, the company will not be able to meet demand. Its
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customers will end up buying competitors' products, and Nestle will lose market share. On the other hand, if its projections are overly optimistic, Nestle could end up with too much plant, equipment, and inventory. This would mean low turnover ratios, high costs for depreciation and storage, and write-offs of spoiled inventory. All of this would result in low profits, a low rate of return on equity, and a depressed stock price. If Nestle had financed an unnecessary expansion with debt, high interest charges would compound its problems. Thus, an accurate sales forecast is critical to the firm's well-being.

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Conclusion
This is competitive world and must never forget that customers have a choice. If they are not satisfied with a Nestl Pure Life, they will switch to another brand. The pursuit of highest quality at any price is no guarantee for success, nor is a single-minded cost-cutting approach. Lasting competitive advantage is gained from a balanced search for optimal value to customers, by simultaneous improvement of quality and reduction cost. Success can never be taken For granted. Nestl must watch and learn from its competitors. If they do something better, Nestle must improve its own performance. Nestle can achieve competitive advantage through Quality. Progress is followed by listening to Nestle customers and by measuring its works performance. Shortcomings and mistakes must be analyzed and corrected. Problems must be anticipated and prevented before they occur. Nestle also must identify and take advantage of opportunities. To stand still is to fall behind. So Nestle must strive for continuous improvement in every area. It is through many small improvements as well as through major breakthroughs that Nestle will achieve excellence. We have observed from our extensive hard-work to compile these pages and after visiting the organization that the company is eager to serve consumers at its every possible level, consumer services department is the evidence of such a pursuit from the organization point of view. Presently the company is market leader in its category but it shouldnt take it as a complacent attitude rather capitalize on its good brand equity and to improve its quality of product to reap not only more profits for the shareholder but also serve the humanity by providing them healthful water which in other way a noble & sacred job. The company can fulfill this job by having such a spirit following it religiously by incorporating it all the marketing strategies.
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Bibliography
1) Philip Kotler, Kevin Lane Keller, Marketing Management 12e 2) Nestle Management Report 2009 3) Nestle Sustainability Review 4) Nestle People Development Review 5) Corporate Business Principles 6) Nestle Principle of Marketing 7) The nestle Policy on Environment 8) www.nestle.com

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