Management planning of Nescafé For Ms. Afsana Akhter's MGT211 class

1. MANAGEMENT PLANNING
OF
NESCAFÉ
MGT 211 Term Paper

2. GROUP MEMBERS
Presentation
Sl. No.
Name
I.D.
Part
1.
Tausif Nazran
11121019
1, 2&3
2.
Moinul Hossain
11204045
4 & 5.1+5.2
3.
Sawda Nusrat Haque
11305007
5.3+5.4 & 6
4.
Samiya Yesmin
11304043
7&8
5.
Protiti Khan
11304018
9 &10

3. 1.1 ORIGIN OF THE REPORT


Nescafé is a world famous coffee brand of Nestlé.
Analyzing and learning from this huge and successful
multinational corporation, to observe and learn how all the
management factors work.
1.2 OBJECTIVE





To learn about management proceeding.
To learn how the planning procedure takes place.
To observe how management theories come into use
To learn why and how the decisions are made.
To learn strategic management from a realistic point.

4. 1.3 METHODOLOGY
Primary- Interview of Mr. Ishtiaque Ahmed, Sr. Brand Officer,
Nestlé Bangladesh Limited.
 Secondary information from the reports given to us by Nestlé
and provided over the internet

1.4 LIMITATION
The report does not cover any in-depth details.
 In some cases, conclusions have been drawn based on
logical assumptions to protect the confidentiality of the
company.
 The study has been done solely in the context of our
understanding, hence the strategies identified and the action
plans suggested might not be applicable.


5. 2 NESTLÉ AND 3. NESTLÉ BANGLADESH LIMITED
BACKGROUND







Nestlé S.A. is a Swiss multinational corporation.
Health Related Consumer Goods.
It is a 150 years old MNC.
In the early 80s Transcom Ltd. was appointed as the sole agent of Nestlé
products in Bangladesh.
Nestlé Bangladesh Limited (NBL) started in1994.
It has only one factory in Bangladesh, Sreepur.
The factory produces instant noodles and cereals and repacks
milks, soups, beverages and infant nutrition products.
History of Nestlé

6. 4. CORPORATE CULTURE
NBL encourages ethical conduct.
 The management style and the decision making process
is participatory.
 Group oriented leadership style
 One unique thing in NBL is that it does not follow senior to
junior work delegation...its all team work.
 This gives the employees sense of leadership and
empowerment
 The congenial atmosphere motivates everyone to do what
is right.


7. 4.1. CORPORATE VISION

To build Nestlé as the respected and trustworthy leading
food, beverage, nutrition, health and wellness company in
Bangladesh ensuring long term sustainable and profitable
growth.
4.2 CORPORATE MISSION
Be the leading company in the local food industry.
 Ensure high quality standards in everything
 Provide consumers with superior quality products.
 Expand total coverage and provide brand wise distribution.
 Provide employees a challenging and satisfying work
environment.
 Be a good corporate citizen and contribute positively to the
society in which NBL operates.


8. 5.1 NESCAFÉ- PRODUCT PLANNING

Nescafé comes in different sizes. These pack sizes are
designed to serve the demand of different consumer segments
and to ensure highest reach of Nescafé in the country
Pack Size
200 gm jar
Target Users
For Bulk users
100 gm jar
For the relatively frequent coffee drinkers.
50 gm jar
For daily usage in an affordable way.
14 gm 3in1
For the consumers to carry and have coffee anytime,
anywhere. And to teach people how to make coffee.
Pack
1.8 gm
Affordable pack with broader consumer base, wide
Bondhu Pack distribution in retail outlets.

9. 5.2 NESCAFÉ- POSITIONING
Near- Coffee drinker zones
 In maximum number of retail outlets
 Nescafé has engaged 77 distributors

5.3 NESCAFÉ- PROMOTING
“cholo shobai” TV comercial
 “Jaago” campaign for 3in1 pack
 Danglers and posters for In-store advertisement
 Sampling at major events to promote tasting
 Sponsoring events
 Providing package incentives, such as Nescafé mugs etc


10. 5.4 NESCAFÉ- PRICE PLANNING
Nescafé’s pricing strategy is different for different pack size to
meet the demand of various channels.

Nescafé 200 gm jar is the highest priced. Retail price: 460
Taka.

Nescafé 100 gm Jar- Price is 260 Taka

Nescafé 50 gm Jar: The price is 135 Taka per unit. Mainly for
household units with high frequency usage per day.

Nescafé 3 in 1: The retail price is Taka 10 per unit.

Nescafé 1.8 gm Bondhu Pack:

A pair of two .9 gm sachets comes at a price of Taka 6. For the low
frequency users.

11. 6. SWOT ANALYSIS OF NESCAFÉ
oSTRENGTHS:
•Strong brand image.
•Expert in Coffee business
•Unique promotion.
oWEAKNESSES:
•Erratic supply
•High price perception/cup
•Some misconception about
coffee & health
•Bitter taste, while Bangladeshi
are sweet-toothed
oOPPORTUNITIES:
•Huge market potential
•Expand numerical
coverage with small packs
oTHREATS:
•Traditional scene of tea-drinkers
•Complete dependency on
Transfer Price
•Grey-Market competition

12. 7. NESCAFÉ MARKET CLUSTER
Nescafé has four types of market clusters.
 Different Strategies for each cluster.

Cups of coffee
More
Developed
Leadership
Developing
Leadership
Market share
More
Less
Less
The 4
Clusters
Developing
Challenger
Developed
Challenger

13. 8. STRATEGIES FOR CLUSTER MARKETS

Developing Challenger Market Strategies:
Establish it as desirable beverage
 Focus on improving appeal, availability and affordability
 Increase sampling


Developed Challenger Market Strategies:
Increase focus on youth .
 Launched innovative, tailor-made products to attract youth.
 Promote positive experience.


Developing Leader Market Strategies:
Establish NESCAFÉ as the standard for coffee
 Target main consumer need states
 Focus on improving appeal, availability and affordability


Developed Leader Market Strategies:
Keep ahead of strong soluble competitors.
 Need to apply most sophisticated technologies here.
 Bring new advances in quality in a relevant and competitive way.


14. 9. INDUSTRY ANALYSIS:
PORTER’S FIVE FORCES MODEL

Barriers to Entry:
•
•

High import duty
Grey Market
Threat of Substitute Products:
•
Tea

Rivalry among Competitors

Bargaining Power of Suppliers

Bargaining Power of Consumers

15. 10. RECOMMENDATIONS & CONCLUSION
Ensure availability of its product to the hand reach of the
customers.
 The biggest challenge of the brand would be addressing
affordability.
 Introducing vending machines in different market
places.
 Free sampling can be done to ensure familiarity of the
brand among the target consumers.


16. Thank you
^_^