1.

Company Background: o o o o o World's largest food & beverages company Recognizes consumers beliefs and actions behind each brand Started operating in Bangladesh in1994 Committed to provide best quality food to people of Bangladesh Product lines: o o o o Baby Foods Dairy Products Breakfast Cereal Ice Cream o o o o Nutrition Chocolate & Confectionery Prepared Foods Food Services

2. Industry Overview: o o Strong competition between local and international brands Major Competitive Brands: o o o o o o DANO Fresh Starship Marks Anchor o o o o o Kwality Diploma Milk Vita Red Cow Praan

Market Leader: DANO

3. Market Share:

3% 7% 19%

Sales
2% 21% 17%

15% 16%
Dano Fresh Marks NIDO Others Praan Aarong Red Cow

Target Market Profile: o Psychographic Profile o o Parents deeply concerned about diverse health requirements of their children

Demographic Profile o o o o Age: 25-45 Years Location: Urban & Semi-urban area Income: BDT 50000 & above Education: Above HSC

4. Marketing Mix a. Product: i. Core benefit of health and nutrition ii. Product mix: 1. NIDO Fortified & NIDO GUMs iii. Product Attributes 1. 60-40+ concept 2. Smoothness, whiteness, smell and creaminess iv. NIDOs Research & Technology 1. Nestl Research Centers (NRC),in Switzerland, India and Singapore 2. New components invented-prebio1, prebio3 3. 3 generations of product v. Packaging 1. Primary container- Aluminum foil 2. Secondary packaging-Cardboard boxes, Tin container 3. Shipping Package- For storage & shipping vi. Labeling 1. Complex graphic designs 2. Product specific labeling b. Price: i. Factors 1. External factors a. Price elasticity i. Nature of the market and demand ii. Natural disasters/sudden increase in demand

2. Internal company factors a. Marketing objective i. Product quality leadership b. Cost of the product i. Only variable cost is Transfer price ii. Charges 12-15% higher price c. Target profit pricing approach i. Bottom Up approach ii. Calculates total cost and sets a target profit c. Place i. Factors affecting distributing decisions: 1. Demand 2. Trade margin 3. Logistics

Nestle

Distributors

Retailers

End users

d. Promotion i. All promotional activities strictly revolve around the core positioning: health & development of children ii. Invests 5% of its net proceeds from sales (NPS) for promotional activities iii. Brand communication done in 2 ways: 1. For demand generation/ brand equity 2. For trade promotion/ pushing products IMC Mix:
TV Radio Press Promotion Billboard

CRM Online Experience PR Publicity

Sponsorship Events Internal BTL Word-of-mouth

e. People

NIDO Brand Manager NIDO Sales Head NIDO Area Manager Territory Manager Territory Officer Distributor Sales Representative Officer Retailer

f.

Process

Dairy Farmer

Milk Collection Agency

Nestle Milk Processing Plant

Distributor

Nestle Warehouse

Packaging

Retailer

Customer

Consumer

g. Physical Evidence Internet Brochures Ambience Signage Uniforms Business cards The building itself Mailboxes etc.

SWOT Analysis

Porters 5 Forces: Threat of substitute products : High Availability of cow milk Tendency to switch product frequently Threat of established rivals: Medium Competitive advantage due to special target market Closest competitor DANO Vitakids Threat of new entrants: Medium If any company provides age specific product Bargaining power of suppliers: Low Not taken into account Bargaining power of customers: High Strong Brand Loyalty of consumers Specializes in age specific milk 3C Model Company: Striving to continuously revitalize the brand. Efficient communication team to drive the consumer demand and increase brand awareness. Efficient distribution team to make sure the product has a wide reach. Continuous improvement process Customers:

Very little market segmentation Target Market is upper class and upper-middle class families.

Competitors

Currently occupying 4th position in a market with huge competition. Local competitors have a larger market share due to lower price and wider distribution channel.
PESTEL: PoliticalDemocratic Government with a slow bureaucracy. Relatively stable political climate. High tariffs on imports making raw materials costly; driving up prices. Economic. GDP 6% meaning more disposable income of consumers Low cost of labor with abundant supply Poor infrastructure may hamper the supply chain process. Social Significant portion of population is aged below 5 (11.2%) No. of working mothers and educated females are rising. Health Conscious Customers (melamine controversy,bird flu disease) Technological Continuously upgrading its technology. High adaptibility with changing technology. Environmental Environmentally safe product and raw materials Liquidity crisis working as a barrier for business expansion. Legal

Laws regarding environmental pollution in place but with law monitoring. Strict waste disposal maintained in the factory premises.

Market Share
3% 2% 7% 19% 17% 15% 21%

16%

Dano

Fresh

Marks

NIDO

Others

Praan

Aarong

Red Cow