MARKETING PLAN

Company Name:

Nestl Bangladesh Limited

Product Name:

Carrot Chips

Assignment On Marketing plan

Course code: MKT-224 Course Title: Marketing Management

Submitted to
Mr. Shamsu Uddin (Shakib) Course Instructor

Submitted by
Faglul Karim Raihan ID:1001010142 Sec-C, 24th batch

Department of Business Administration Leading University, Sylhet Date of Submission: March 1, 2012

Acknowledgement

First of all I pay a special thanks to my almighty God, who made me able to complete this report. Then I would like to give thanks to Renowned Philanthropist Mr.Ragib Ali as he established Leading University and we got this opportunity to read here. After wards, I would like to express my heartfelt gratitude to Prof. Dr. Mr. Bashir Ahmed Bhuiyan, Head of the Department of Business Administration, Leading University-Sylhet. I would like to thanks our course instructor Mr. Shamsu Uddin (Shakib), respected lecturer of Leading University for giving me this chance to make a assignment on Marketing plan. My thanks also goes to my family members and friends who are co-operated with me at any of the steps of the assignment and continuously support me without any hesitation and make themselves an important part of this job.

Executive Summary

Nestl Bangladesh Limited started its first commercial production in Bangladesh in 1994. In1998. Nestl S.A. took over the remaining 40% share from our local partner when Nestl Bangladesh became a fully owned subsidiary of Nestl S.A. Nestl Bangladesh's 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 benefit of shareholders and employees. Their factory is situated at Sripur, 55 km north of Dhaka; the factory produces instant noodles, cereals and repacks milks, soups, beverages and infant nutrition products. Today Nestl Bangladesh Ltd. is a strongly positioned organization. The company will continue to grow through their policy of constant innovation and renovation, with the aim of providing the best quality food to the people of Bangladesh. The company wants to launch a new type of chips in the market. It is totally different from the traditional chips. It is a high quality chips which will be harmless. In that product, there will have some special ingredients which will provide nutrition and which will be work as digester. So definitely, that product will be an exclusive product in the market. The target market of that product will be those who think that chips are harmful for health; those who have digesting problems; and the current users of the chips. The chips will provide some exceptional tastes which will provide great pleasure. The chips will be sugarless so it will not be harmful for teeth. There will no chemical color in this chip. This is mainly a natural product which has no bad side effect. After analyzing the market demand I have seen that there is a demand in the market for this kind of product. And I have seen that the company has a great opportunity to enter in this business. Otherwise, there are a few risk involved this business. The product will be a very new product and there is chance of rejection by the market. The competition will also high. And if we succeed any large company can easily enter this market. Considering all the possible threats I can suggest the company that it will be profitable to enter this business because there are some positive sides of the product and the company is also strong. After estimating the cost and sales I can say that it will be profitable. So this marketing plan can be consider.

Table of Contents Serial No Content Name Page No

Acknowledgement Executive Summary

ii iii 1 1 1 1 1 2-4 4-5 6 7

1
1.1 1.2 1.3 1.4

Introduction Origin of the study Scope of the Study Purpose Limitations Situation Analysis
Market Opportunity and Issues

2 3 4 5 6 7 8 9 10 11 12

Objectives Marketing Strategy Target Markets Positioning Marketing Mix Reviews and Control Marketing Organization Conclusions References

7-8 8-9 9-12 12 12

15 13

1. Introduction
1.1. Origin of the study:

This Assignment originates to fulfill the requirement of studying Marketing Management, which is the course of BBA Program of Leading University, Sylhet. The topic of the assignment is Marketing Plan.

1.2. Scope of the Study:

The market of food and beverage is very competitive. I may say that as a strong market. This assignment paper is prepared as a marketing plan of a product of Nestl Bangladesh Limited which brand name is Carrot Chips.

1.3. Purpose:
The purpose of the report is to develop our skills in marketing activities and to elaborate our knowledge.

1.4. Limitations:
To prepare this report I have faced a lot of problems such as unavailability of lab, electricity problem, unavailability of related books, lack of time, unavailability of information in net etc.

2. Situation Analysis:
2.1Customers:

Bangladesh is an over populated country. It has a large amount of population. And many of them are fond of chips. So there is vast market for the chips industry. But some people are disinterested about the chips. So the people have also some negative ideas about the product

2.2 Competitors:
The chips industry in Bangladesh is not small. There are a lot of chips producers. Some of them are national and some of them are local suppliers. Some companies also export their chips. In our country many foreign brands are also available. They are comparatively costly also. So the consumers taste and demand are changing from low quality chips to high quality chips. Now the chips industry of Bangladesh is very competitive. The major competitors of chips, brands name are Pran, Meridian chips and Indian lays chips, Ruchi chips etc.

2.3 Company:
Nestl - the world's largest food & beverages company in terms of sales as well as product range and 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. Nestl Bangladesh Limited, a wholly owned subsidiary of Nestl S.A., started its commercial production in 1994 and currently employs 400 people directly in the company and another 1000 people indirectly in the industry. Today Nestl Bangladesh Limited is strongly positioned to grow through its policy of constant innovation and renovation, concentrating on its core competencies and commitment to high quality, with the aim of providing the best quality food to the people of Bangladesh. The company now wants to launch new chips in the market. This chips is totally different from other traditional chips. Its quality will be very high and which will be harmless. In that product, there will have some special ingredients which will provide nutrition and which will be work as digester.

2.4 Context:
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. In the market of Bangladesh has a demand of chips product. At present, a lot of chips are available in the market and there is an idea in the market that chips are very harmful for the teeth. So a lot of conscious people do not take chocolate or chips and many parents do no feel comfort to give this to their children. So people have a latent demand of harmless chips. Nestle Bangladesh Limited wants to launch chips with high quality and which will be harmless. Bangladesh has a lot of resources. Even then many items of the chips especially chemical ingredients have to be imported from abroad. So the supply of raw materials from local sources is very important in producing the chips and the suppliers of raw materials are available in Bangladesh & suppliers who offer them at the best prices, the providers of utilities-power, gas & water etc. and the customers who buy their products & services by redeeming their claim intimae by making prompt payment and by distributing proper product on due dates.

2.5 Economy:
Bangladesh is a developing country. Though the economic condition of this country is not so good, The economy is turning from agricultural sector to and industry sectors. So the future of any industry like chips in this country is very bright.

2.6 Government:
The govt. is also attentive about the industry sector and encourages and helps to establish new businesses.

2.7 Legal:
The govt. regulations or the legal condition of Bangladesh is also not a big obstacle at starting new business or to launch new product. But in terms of introducing new consumer product, a company must obtain the approval of BSTI (Bangladesh Standard & Testing Institute). So to launch a new chips the company must obtain BSTI approval.

2.8 Technology:
The technological environment of Bangladesh is not developed. So, new and advanced technology and machinery have to be imported from the abroad to produce qualified chips.

2.9 Socio-cultural:
From the socio-cultural point of view, there is no barrier for chips. The chips have a good acceptance in Bangladesh. But many people are aware about its bad effect. They know that chips are harmful for health and there is a strong idea about this in mind of the people.

3. Market Opportunity and Issues:

SWOT analysis: SWOT analysis is the overall evaluation of a companys strengths, weaknesses, opportunities and threats. The SWOT analysis of the Nestl Bangladesh Ltd regarding marketing of Carrot Chips is as follows Internal environment analysis: The strengths and weaknesses of Nestl Bangladesh Ltd Carrot chips are summarized below: Strengths: Expert and experienced management High quality product offerings that will exceed the competitors price, quality and services. Maintain strong delivery schedule. Strong financial support. Company has strong manpower.
Nestl Bangladesh Ltd has a great company reputation

Customer loyalty of the company Availability of capital Use of modern technology Financial stability Product has the brand personality.

Weaknesses:
Carrot Chips is a new product of the company.

 Nestl Bangladesh Ltd has many kind of product. But for this new type of product, distribution and promotion will have to be taken. As it is a new flavor product, it will be difficult to manage customers for the company. Lack of proper knowledge about the market and the demand.

External environment analysis: The major opportunities and threats of Carrot chips are given below: Opportunities: There is a demand for this kind of product. Company has good image in the market. There are no existing chips like CARROT Chips Good and initiative employees. Mature retail market in Bangladesh. Developed communication channel. Company has a lot of vehicles to deliver the product. Threats: The present chips manufacturers are also strong competitors. As it is a new product, there is a chance of rejection by the market. It may fail to fulfill the expectations of the customers. Foreign chips company. High cost of the raw materials. Political environment of the country.

4 Objectives:
4.1 Marketing objectives: . To maintain positive, steady growth each month. To increase new customers who dont buy chips. To attract current customers of the present chips. Generate brand equity in the market so that in future no company can take the market by producing same product. Create loyal customers.

4.2 Financial Objectives:

Gain new sets of customers within 4 months that worth for Tk. 50,00,000 In the year-end TK. 1,50,00,000

4.3 Sales Forecast There will not be enough sales in first month. In the second month the sales will be increasing at a satisfactory rate. From the third month the increasing rate of sales will be very high. That means from month three there will be a steady increase in production and sales. Our sales forecast is 1000000 packet chips for the first six months. On an average per piece of chips will be sold for Tk.10.

Estimated Sales for the first Six Months:

Estimated Sales (TK.) 1200000 1000000 800000 600000 400000 180000 200000 0 1 540000 360000 720000 1080000 900000

3 4 5 Consecutive Month

5. Marketing Strategy:
Nestl Bangladesh Limited will decide to market Carrot Chips all over the country especially in the urban and sub urban areas. Customers will be communicated through advertisements such as TV ads, newspaper ads, internet and other media such as radio

Mission:

To provide customer highest quality chips and attract current customers of the present chips. Generate brand equity in the market so that in future no company can take the market by producing same product

6. Target Markets:
Nestl Bangladesh Ltd main target market people are the young ages people who like to eat chips very much. Mostly the school going students and the children. Beside that they also focus the young generation people. Although their main target market is young people but they also prefer the people of adult and old ages people. Also their focus goes to all types child of the country and the current user of the chips. 6.1 Target Market Segments: Nestl Bangladesh Ltd. has segmented its market on the basis of following categories: Geographic:

For the urban and sub urban and rural areas citizen of all over the country. Especially for the convenient transportation areas. Demographic:

Children generally under teen-age. Young generation generally under age range 13-25. Educated people and conscious parents. Psychographic:

The lower middle class, middle class, and upper middle class. The conscious people. Behavioral Factor

Those who have negative idea about the traditional chips. Those who seek good quality. The non-users and regular users of the chips. Those who are aware about the bad effect of the traditional chips.

7. Positioning:
Market positioning requires the determination of a frame of reference- by identifying the target market and the nature of the competition and the ideal points-of-parity and points-of-difference brand association. Nestl Bangladesh Ltd always try to position their product through image differentiation, because related marketing, and product differentiation. Nestl Bangladesh Ltd will use logo and short advertisement so that people can consistently see the advertisement so the product will occupy a clear, distinctive, and desirable place in the mind of the consumer relative to competitors product. Nestl Bangladesh Ltd will use USP (Unique Selling Proposition) for their product. To do brand differences that make a better differentiation or that has the potential to create company costs as well as customer benefits. A difference is worth establishing to the extent that it satisfies the following criteria.

Important Distinctive Superior Communicable Affordable and Profitable

To capture the customer/ user easily, Nestl Bangladesh Ltd will also develop some positioning strategy to position Carrot chips. There are some requirements how Nestl Bangladesh Ltd capture the customer value. These are given below:
i)

By proper offerings. To show the interest of the product. By preemptive and then other competitors can`t copy this product and its services. By creating product superior valve. By advertising To know about the customary satisfaction. To ensure the better quality. Ensuring that its 100% Harmless chips By offering chips with affordable price

ii) iii) iv) v) vi) vii)

viii)

ix)

8 Marketing Mix:

8.1 Product:
For launching a product in the market, there is some procedure that should be followed by every marketer to move in the long run. Our product will enable our customers to have a different experience to try our chips. They will be able to differentiate our product in quality which is unique in the chips market. They will not be able to feel the same way for the other chips in the market. Generally different size of chips packet will be produced for customer. These are small, medium and big size.

8.2 Price:
Price is the amount of money customer wish to pay to obtain the product. Necessary strategies pertain to the locations of customer price flexibility related item within a product line and terms of ale. Here, they can set maximum Tk.10 for small and TK.15 for medium and TK 20 large packet. Pricing policy for its product due to the following reasons: Distinctive Packaging Brand Name Cost of raw materials Discounts, allowances and payment period will be reasonable for customers

8.3 Place:
By using the present distribution channel Nestl Bangladesh Ltd can easily market this new product Carrot Chips. The company has many consumer products. The company can use its present marketing channel to make the products available all over the country. They also can make some new channels and assign some distributors to promote this new product. Nestl Bangladesh Ltd can also use its current delivery vehicles to deliver the new product Carrot Chips product to the wholesalers. The company can use its local offices to deliver to the retailers. So at introduction stage, companys current marketing channel is enough to deliver the products to wholesalers and retailers. They can use mobile shop in the shopping malls, offices and crowded areas so that people can purchase the product easily when they like to consume.

8.4 Promotion:
It plays an important role in the exchange process by informing customers of an organizations product or service and convincing them of its ability to satisfy their needs or wants. We will use the following promotional mix:

Advertising Personal selling Direct marketing Sales promotion Nestl Bangladesh Ltd will take a large promotional program for this product. The company will keep a handsome amount for the promotional activities of the product. As it is a new Product more promotion is needed to build up the product awareness. Nestl Bangladesh Ltd. will use ads through TV, Radio, and Newspaper, Internet, Information, Home Delivery, Bill Board, Ticket Advertises, Concert Programs, Power point presentation. Banner, Festoon, Placard, Joining Fair To aware people about this chip. The company will take the strategy to create awareness about the bad effects of the traditional chips. Then the company will present its chips to the market as harmless to children and students as well as young, old and all age people.

8.4.1 Advertisement:
In the newspaper advertising, the company will know or inform the people about the bad effect of the traditional chips and inform about the good sides of the Apple chips. In their TV commercial they will also try to build awareness in the minds of the customers and try to acquire a strong position in the minds of the customers. In the electronic medias advertising the company can present famous and renowned doctors to inform people about the difference between traditional chips and Carrot chips.

8.4.2Public Relation:
The company will take a mass public relation program. Nestl Bangladesh Ltd will have to take this kind of promotional activities such as stall booking in many trade fair, child fair etc. to create a positive image about the brand.

8.4.3 Retailers and Wholesalers:

Nestl Bangladesh Ltd will give many facilities to the retailers and the wholesalers. To take the competitive advantage the company will give more facilities than its competitors. The intermediaries are given many gifts items such as wall clock, T-shirts etc. and sales helping equipments such as keeping pots, bill board etc.

8.4.4 Others:
They will develop some cartoons which will be used on the T-shirts, bill boards, neon boards, and in some ads to attract the children and young people. The company also uses this brands logo, picture, symbol etc. on many toys, dolls and on many other things to know and attract the target market.

9 Reviews and Control:

Marketing plan includes different kinds of budget and managerial assignment for every action program. It describes how to implement marketing plan. For control purposes, the plan also allows for quarterly comparison of actual versus projected sales and expenses. If they cannot do this comparison among the plan then they never go to the competition. For their better performance they need comparison between actual and projected sales and expenses. If there find out any gap in plan and output, we have to take corrective actions. Not only that, if there is any problem arise in production, marketing process, or any other areas, we have to take necessary steps to overcome that. Finally, the management will monitor the total environment, progress, and gap and will take the corrective actions if necessary. The company always has to maintain the TQM (Total Quality Management).

10 Marketing Organization:
Nestl Bangladesh Ltds chief marketing officer lutfur Rahman will be responsible for the marketing activities. The graph below shows the marketing organization:

lutfur Rahman Chief Marketing Officer

Md Eamin Zabed Sales Manager

Subrata Kumar Singha Advertising Manger

Farhana Yeasmin Lopa Promotion Manager

11 Conclusions:
We all know that, todays fast moving world respect the new, innovative ideas. To keep the same pace with this situation Nestl Bangladesh Ltd Company had decided to launch a chips and it has a bright future in its market. As the product is innovative, the consumers are going product will be a strong product mix for our company. And once Carrot Chips will reach to the hand of our targeted customers, Nestl will be able to capture the most market shares. Nestl Bangladesh Ltd Company solves its weakness and overcomes its threats. Also Nestl Bangladesh Ltd Company adds exclusive taste in chips and our product has some exclusive characteristics that will help us to acquire position in the minds of the customers. This Carrot Chips contain such advantage or features that will achieve its customer satisfaction.

12 References:
Kotler and Keller. Marketing management.12th edition. Philip Kotler marketing management.11th edition.S

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