CHAPTER – 1INTRODUCTION

1.1. BACKGROUND OF THE STUDY:

Nestlé Bangladesh Limited is a leading

Food company with lots of global strategic

brands operating in Bangladesh. MAGGI

is one of the strategic brands of Nestlé

Bangladesh Limited. Worldwide MAGGI

brand is used for Nestlé's Soup, Noodles,

Seasonings, Recipe Mixes and Sauces.

In Bangladesh, MAGGI brand has two

product categories under this strategic

brand name: Noodles and Soups. As part

of the brand extension and value creation

objective of the company, Nestlé now is

going to launch MAGGI Ketchup in

Bangladeshi market. Ketchup and Sauce

business of Nestle under the brand name

MAGGI is very much profitable and

successful in other countries specially

South Asian regions like in Nestle India

(10,000 tons per annum) and Nestle

Malaysia (12,000 Tons per annum). In

most of the countries, where MAGGI has

launched its ketchup range, it has become

the market leader in this category.

Image – Proposed MAGGI Ketchup

Following this heritage and business

excellence in ketchup business, Nestlé

Bangladesh is also interested to explore

the business in local market. Moreover, in

Bangladesh, there's a huge market for

Ketchup and sauces. A very good number

of players including some very strong

local players are operating successfully in

this market.

Now Nestle would like to launch in this

segment and making a five years

marketing plan.

1.2. OBJECTIVE OF THE STUDY:

1.2.1. Broad Objective

To plan of launching MAGGI Ketchup in Bangladesh to grasp a major portion of market

share.

1.2.2. Specific Objectives:

To see the market situation and have an overview of the ketchup industry

To analysis opportunity and issue

To set the objectives

To set marketing strategy

To set financial projection and implementation controls.

1.3 SCOPE:

Our particular report all most covers the marketing plan on MAGGI Ketchup in Bangladesh for the next five years. It shows the feasibility of launching of our product.

1.4 LIMITATIONS:

We are lucky enough to get a chance to prepare a report on “marketing Plan for introducing in

MAGGI Ketchup in Bangladesh” We tried heart & soul to prepare a well-informed report. In

spite of trying our level best, there may be some lacks in the paper. Those lacking are

following:

In the month of June, all organizations remain busy. So, the employees were too busy

to answer our queries.

It was too short time to make a overall marketing plan in only 2 weeks.

We also faced a destruction of all our documents for wastage of the hard disk of our

computer. In spite of our massive problem, we at last have tried to make it fulfilled.

We beg your pardon for our unintentional delay.

1.5. METHODOLOGY:

Methodology consists of step by step, organized and systematic fashion to complete the entire

research. It should be such that effective and efficient result should be adopted. The main

objective of this report is to plan the marketing activities and its feasibility and analyzing its

effectiveness. The primary information and some secondary information about the

competitors were collected from Internet.

CHAPTER-2ORGANIZATIONAL OVERVIEW

2.1. COMPANY BACKGROUND:

Nestle is the world’s largest food company involved in nearly every field of nutrition, with a

turnover of 88 billion Swiss Francs. It is largest not only in terms of its sales but also in terms

of its product range and its geographical presence. Its field of nutrition includes 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, Nestle is the leader or at least a

strong number two. Nestle is focused company with more than 94 percent of the sales coming

from the food and beverage sector. Nestle is present around the globe, on all continents, with

around 230,000 people working in more than 84 countries with 468 factories and with sales

representatives in at least another 70 countries. Most popular brands of Nestle are Nescafe,

Nido, Maggi, Polo, Smarties, Milo, Perrier, Friskies, Kit Kat, and Crunch. Some of their

products have broken records: 3,000 cups of Nescafe are consumed every second, and Kit

Kat merited an entry in the Guinness Book of World Records as the world’s best selling

chocolate bar, with 418 Kit Kat fingers eaten every second around the world.

2.2. HISTORICAL BACKGROUND:

Nestlé is an international company with its headquarters in Vevey, Switzerland. In 1867

Henri Nestlé, 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 Nestlé “(Nestlé Milk Food).

In order to expand into a broader product category and meet more people’s needs, the Nestlé

Company’s first diversification occurred in 1905 when it merged with the Anglo- Swiss

Condensed Milk Company (est.1866). Today, processing milk food is still the company’s

chief activity together with the other products of Nestlé family such as chocolates, instant

milk-based drinks, culinary products, frozen foods, ice cream, dairy products and infant

foods.

Nestlé is still primarily concerned with the field of nutrition, but it has also acquired interests

in pharmaceuticals and cosmetics industries.As a result of the company’s initiative and bold

activity, it has grown into a large organization, employing almost 230,000 people in nearly

500 factories worldwide. Nestlé products are now widely distributed on all continents and

sold in more than 100 countries.

2.3 NESTLÉ IN BANGLADESH:

Nestle Bangladesh Limited started its first commercial production in Bangladesh in 1994. In

1998, Nestle S.A. took over the remaining 40% share from the local partner and Nestle

Bangladesh became a fully owned subsidiary of Nestle S.A. Nestle Bangladesh’s vision is to

be recognized as the most successful food and drink company in Bangladesh, by generating

sustainable, profitable growth and continuously improving results to the benefit of

shareholders and employees.

The world-class 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.

2.4. HISTORY OF NESTLÉ BANGLADESH LIMITED:

Popular Nestlé brands entered this part of the sub-continent during British rule and the trend

continued during the pre-independence days of Bangladesh. After independence in 1971,

Nestlé World Trade Corporation, the trading wing of Nestlé S.A., sent regular dispatches of

Nestlé brands to Bangladesh through an array of indentures and agents, and some of the

brands such as Nespray, Cerelac, Lactogen, and Blue Cross etc. became household names. In

the early eighties Transcom Ltd. was appointed the sole agent of Nestlé products in

Bangladesh. In 1992 Nestlé S.A. and Transcom Ltd. acquired the entire share capital of Vita

Rich Foods Ltd. Nestlé S. A. took 60 percent while Transcom Ltd. acquired 40 percent.

The name of the company was also changed at this time to Nestlé Bangladesh Limited. In

1998 Nestlé S.A. took over the remaining 40 percent share from Transcom Limited.Today

Nestlé Bangladesh Ltd. is a strongly positioned organization. We will continue to grow

through our policy of constant innovation and renovation, concentrating on our core

competencies, with the aim of providing the best quality food to the people of Bangladesh.

REPORT BODY

CHAPTER-3SITUATIONAL ANALYSIS

3.1 CURRENT MARKET SITUATION

MAGGI finds 46 brands of Tomato ketchup are currently available in Bangladesh ketchup

market. Among the brands, 34% are selling Ketchup, are also selling the Chili variant along

with Tomato ketchup. The total volume of the sauce 68% volume comes from Tomato

Ketchup & the remaining 32% comes from chili. Brands with the highest penetration

nationally are the local brands Pran & Ahmed, mostly used for in home consumption by the

middle-income household Vs Best & Druk are used mostly for foodservice and by the higher

income household. Analysts predict that the ketchup market in Bangladesh have a great

potentiality to growing fast. It is assumed the next five years ketchup market in Bangladesh

will be increased more than 25% percent. So, there have a great potentiality to make a good

profit. For this great potentiality to margin profit, comprehensive competitive pressure has

been increased in the market. The estimated volume of the ketchup market is 1100 ton, with

25% growth expected within 5 years the total market size will be BDT 1.7 billion. To gain

market share in this environment, MAGGI Ketchup must carefully target specific market

segments.

3.2 MARKET DESCRIPTION:

Our product will hold the position in the market because we are providing high quality with

better tastier ketchup for the customers who are willing to money on the best. We posses

good information about the market and serves the best quality with reasonable pricing. Unlike

the mainstream products, we will not serve lower quality for maintaining lower cost.

3.2.1 Target Market:

MAGGI Ketchup market consists of middle and upper-income household as well as

foodservice sector for example; restaurant.

3.2.2 Target Market Forecast:

Potential Customers Growth 2012 2013 2013 2014 2015

Families 25% 25000 31250 39062 48828 61035

Restaurants 15% 1500 1725 1983 2281 2625

Total 24.5% 26500 32975 41045 51109 63660

3.2.3 Market Demographics:

The profile for MAGGI Ketchup customers consist of the following geographic,

demographic, and behavior factors.  Please note that MAGGI Ketchup has two target

segment customers, Families consumers and restaurants.

Families:

Geographic:

The immediate target is the city of Bangladesh.

Middle-income and upper-income household.

Demographics:

Singles and families.

Mostly females and children.

Have a household income of more than 10,000 tk per month.

Consuming per year at least 3 ketchup bottles.

Conscious consumer about their health.

Behavior Factors:

Paying a premium for higher quality, tastier ketchup.

Health consciousness

Restaurants (and their customers):

Geographic:

Fast food and restaurants in the cities of Bangladesh.

Demographics:

Male and female.

Single and families.

Tend to patronize higher-quality restaurants.

Behavior factors:

Health consciousness

High-quality meal.

3.2.4 Market Needs:

MAGGI Ketchup provides individuals, families and restaurants with high-quality

tomato and chili ketchup. MAGGI Ketchup seeks to fulfill the following benefits that

are important to their customers.

High quality: MAGGI Ketchup offers a wide selection of health conscious

choices, and utilizes high quality ingredients.

Competitive pricing. Our products will be priced competitive to the market.

3.2.5 Market Trends:

The market for ketchup has exploded within the last five years.  Explanations for this

trend are:

Market supply: The increase of supply has reinforced the demand.  Within the

last few years many firms that were producing different types of food items have

moved to production of ketchup because of the increased margins and market

demand.

Health consciousness: Now-a-days people have become more health conscious

and MAGGI Ketchup contains nutritious ingredients with tastier flavor.

Food quality. The preference for high-quality ingredients is increasing as

customers are learning to appreciate the qualitative differences.

3.2.6 Market Growth:

Now the total size of the ketchup market is more than BDT 1.2 billion. Analysts

forecast that the market size will be growing faster. Now people are appreciating the

more taste of nutritious food. MAGGI Ketchup contains nutritious ingredient makes

food more tasty and delicious. So, customer growth has risen. This customer growth

rate can be forecasted to gain better market share.

3.3 SWOT ANALYSIS:

MAGGI Ketchup has several powerful strengths on which to build, but our major weakness

is higher pricing than local product and unimpressive packaging. The major opportunity is

growing demand for foodservices area as well as household user of ketchup that benefits us

to expand our market. We also face the threat of ever-high competition and downward

pressure on pricing. The following SWOT analysis captures the key strengths and

weaknesses within the company and describes the opportunity and threats of outside the

company by MAGGI Ketchup. Table2.1 summarizes the main strengths, weakness,

opportunities and threats facing MAGGI Ketchup.

3.3.1 Strengths:

MAGGI Ketchup can build on three strengths:

Brand Image: In Bangladesh, two brand products of MAGGI: - MAGGI Soup and

MAGGI Noodles have gained highest market share in the competitive market as well

as succeed to make a good brand image. This brand image helps to make an assurance

better quality and taste of MAGGI Ketchup to the potential customers.

Attractive trade promotion: Our product offers competitive trade promotion to the

retailers, which ultimately helps to increase secondary sales.

Quality and Taste: Our product maintains good quality and makes it delicious which

ultimately helps to gain more ketchup consumer.

3.3.2 Weakness:

By waiting to enter the market until the initial shakeout and consolidation of competitors

has occurred, MAGGI Ketchup has learned from the successes and mistakes of others.

Nonetheless, we have two main weaknesses:

Unimpressive packaging: Our packaging is not so impressive when compare to

imported brands’ packaging.

Price: Price is comparatively high to local brands.

Table2.1 MAGGI Ketchup’s Strength, Weakness, Opportunity and Threats.

Strengths

Higher Brand image

Attractive trade promotion

Quality and Taste

Weakness:

Unimpressive packaging

Higher pricing than local brands

Opportunity

Developing foodservice industry

Improvement of product and

packaging quality.

Decreased operations cost

Threats

Increased competition

Modest economy

Downward pressure on pricing

3.3.3 Opportunity:

MAGGI Ketchup can take advantages of three major market opportunities:

Developing foodservice industry: People are appreciating the more taste of food.

MAGGI Ketchup is not only delicious itself but also increases the taste of other food

when MAGGI ketchup is mixed with it. Habit of taking fast-food has been risen when

restaurants serves MAGGI Ketchup with other foods.

Improvement of product & packaging quality: With continuous improvement

process, we improve the ability to improve product & packaging quality.

Decreased operations cost: Follow a disciplined continuous improvement process

that facilitates their ability to promote growth while reducing their delivered product

cost and eliminating non-value added activities.

3.3.4 Threats:

We face three treat at the introducing of the MAGGI Ketchup:

Increased competition: More companies (local and foreign brands) are currently

available in the market. To gain the reasonable market share, we have to maintain our

quality all the best.

Modest economy: A slump in the economy-reducing customer's disposable income

spent on eating out.

Downward pressure on pricing: Increased competition and market share strategies

are pushing the product price down.

3.4 PRODUCT OFFERING:

MAGGI Ketchup is going to launch two popular variants in the market. MAGGI has created

MAGGI tomato ketchup and MAGGI chili ketchup that are differentiated and superior to

competitors. Customers can taste the quality and freshness of the product in every bite. The

following are characteristics of the product:

1. Best quality

2. More durability

3. Posses no harmful chemical ingredient

MAGGI, one of the strategic brands of Nestlé, is dedicated to providing the best foods to

people throughout their day, throughout their lives. With our unique experience of

anticipating consumers’ needs and creating solutions, MAGGI contributes to consumers’

well-being and enhances consumers’ quality of life.

3.5 COMPETITIVE REVIEW:

Increased entry of established sauce, ketchup and pickle food industry has pressured industry

participants to continually add features and cut price. Key competitors include:

Table. 2.2Selected Competitive company’s targeted consumer and price

Brand Pack Size Price Mkt. Share Targeted Consumer

Pran 340 40 20.0% Middle and upper- income household& also

restaurants

Best 340 49 19.3% Middle and upper income households &

foodservice area

Ahmed 340 40 13.4% Middle-income household

Druk 400 63 11.6% Upper income households& foodservice area

Roza 300 45 7.0% Households & Restaurants

Meridian 285 46 4.7% Middle-income household

BD 340 50 3.5% Middle and upper- income household

Heinz 300 49 2.6% Upper income households& foodservice area

Others Avg. 320 Avg.45 17.9% Household & foodservice area

100.00%

Pran: The ketchup market is dominated by Pran with its 20% market share with 340

gram packed size which is sold in taka 40. Pran is the best selling sauce in household.

Middle and upper-income households prefer pran for home consumption. In terms of

availability, Pran is available in most of the store. High numeric distribution of Pran can

be seen nationally. It has 250 distributors in all over Bangladesh. Pran is giving highest

trade promotion to the retailers. It offers credit for the retailers for highest selling in the

market.

Best: Best is also the most popular brand in the middle & upper income households. It

holds 19.3% market share with 340 gram packed size which is sold in taka 50. Best is the

best selling sauce in foodservice area. In Fast food shop 4gm best sauce is very much

popular. It is giving competitive trade promotion to the retailers.

Ahmed: The local brand Ahmed gains 13.4% market share with its 340 gram packed

size which is sold in taka 40. The middle-income household mostly uses for it in home

consumption.

Druk: Druk is the most popular brand upper income households. It acquires the best

selling sauce in foodservice area. Most of the renowned restaurants use druk for food

serve. Druk has 11.6 % market share with its 400gram packed size which is sold in taka

63.

Roza: Roza possess 7 % market share. It is also consumed for household consumption as

well as restaurants. The chili flavor is mostly used in the restaurant.

Meridian: Meridian is used mostly for in home consumption by the middle-income

households. It gains 5% of the total market share. It gives incentive trade promotion for

retailers. It offers 1 Sauce free for 1 dozen of sauce purchase for retailers.

BD: BD is the newly entry sauce industry in the ketchup market. Within a short time, it

gains 3.5% market share for TV communication with high frequency.

Heinz: Foreign brands Heinz acquire 2.6% share with its 300 gram packed size which is

sold in taka 49. Resturants and upper-income households is the main customer of Heinz.

Others: Roma, Kohinoor, Kimball, Del Monte, Seema, Suree and others have the rest

market. Most of them are used in the restaurants. Most of the restaurants use Chili sauce

for cooking and other purposes.

Despite this strong competition, MAGGI Ketchup can carve out a definite image and gain

recognition among the targeted segments. Figure-2.1 shows competitive company’s markets

share holding :

3.6 KEYS TO SUCCESS:

The keys to success are producing ketchup that meets market demand. In addition, our

ketchup must ensure total customer satisfaction. If these keys to success are achieved, it will

become a profitable company. The following are the areas where the company is pioneer:

Uncompromising commitment to the quality of the product.

Continuously revitalize the products.

Communicate the differentiation and quality of our offering through personal

interaction and media.

Manufacture Distributor Retailer Final consumer

3.7 CRITICAL ISSUES:

MAGGI Ketchup is still in the speculative stage. Its critical issues emerge from the SWOT

analysis and review of the market:

National economic conditions, which are not favorable to the people.

Constantly monitor customer satisfaction, ensuring that the growth strategy will never

compromise satisfaction level.

3.8 DISTRIBUTION REVIEW:

Our strategy assumes that we need to go into specialty channels to address our target

customer's needs. We position our products as the highest quality, highest incentive offering

for our own distribution channel. Our distribution channel is:

r

CHAPTER-4

MARKETING STRATEGY

4.0 MARKETING STRATEGY:

Our marketing strategy is based on a positioning of product differentiation. On the consumer

side, we have targeted the middle to upper class households who need ketchup for family and

their children to add extra taste to their eating. Most of the middle class consumers want the

price of the ketchup be 40 to 45 tk. i.e. they want lower- priced product with high durability

and preservation ability. Most of this segment can be demographically described by age (30-

45).

Besides, we have set a goal to serve some restaurants on the business side. This target market

ranges from the small to three or 5 star hotels who want to serve their customers ketchup with

a different but wonderful taste and want more preservation within a reasonable price.

Each of the four marketing mix strategies conveys our differentiation to the target marker

segments identified above.

4.1 POSITIONING:

Positioning is the act of designing the company’s offering and image to occupy a distinctive place in

the mind of the target market. Actually our strategy is to grab an unoccupied position. Our market

positioning strategy is given below in a table:

Company&

Product

Target

Consumers

Benefits Price Value

Proposition

Nestlé(Maggi)

(Ketchup)

Quality conscious

consumers of

ketchup

More

preservation

ability and tasty

At an affordable

price for the

middle class and

upper class

families.

Tastier, spicy

ketchup from the

pure ingredients at a

moderate price.

4.2 PRODUCT STRATEGY:

Our Maggi ketchup, including all the features described in the earlier Product Review, will be

sold with a more preservation ability warranty than the other products in the market. In the

following year, we will try to increase more taste and ingredients and launch ketchup which

the lower-middle class consumers will also be able to buy. Building the Maggi Brand is an

integral part of our product strategy. The brand and logo will be displayed on the product and

its packaging and reinforced by its prominence in the introductory marketing campaign.

4.3 PRICING STRATEGY:

Maggi ketchup will be introduced at 38 taka wholesale and 45 taka estimated retail price per

unit if we want to have some profitability. We expect to lower the price of this first product

when we expand the product line by launching the next ketchup. These prices reflect a

strategy of attracting desirable channel partners and taking marker share from our major

competitor Pran.

4.4 DISTRIBUTION STRATEGY:

Our channel strategy is to use selective distribution to have our product sold through well-

known stores and shopping malls. During the first year, we will add channel partners until we

have coverage in the country market and the product is included in the major ketchup

catalogs and Websites. In support of our channel partners, Maggi will provide detailed

specification handouts, full-color photos and displays featuring the product. We will also

arrange special trade terms for retailers who place volume orders.

4.5 MARKETING COMMUNICATION STRATEGY:

By integrating all messages in all media, we will reinforce the brand name and the main

points of product differentiation. We will introduce advertising on a pulsing basis to maintain

brand awareness and communicate various differentiation messages. Advertising agency will

also coordinate public relations efforts to build the Maggi brand and support the

differentiation message. To attract marker attention and encourage purchasing, we will offer

some products of Maggi such as Maggi noodles free. To attract, retain and motivate channel

partners for a push strategy, we will use trade sales promotion and personal selling to channel

partners. Until the Maggi brand has been established, our communications will encourage

purchases through channel partners rather than from our Website.

4.6 MARKETING RESEARCH:

Using research, we can identify the specific features and benefits that our target market

segments value. Feedback from market tests, surveys and focus groups will help us to

develop our ketchup. We are also measuring and analyzing customer’s attitudes toward

competing brands and products by surveying in the households and restaurants. Brand

awareness research will help us to determine the effectiveness and efficiency of our messages

and media. As we want to establish our own image, we will initiate questionnaire to be

acquainted with the consumer’s need and wants. Finally, we will use Customer satisfaction

studies to gauge marker reaction.

4.7 OBJECTIVES:

We have set some successive and achievable financial and marketing objectives to be

successful in the marker.

4.7.1 Financial Objectives:

We want to gain a no loss-no gain condition over the next 3 years.

We want to produce total revenue of BDT 4750000 in 1st year and BDT 6,650,000 in

the next year.

Within 5 years, we want to produce an amount of profit 3.2 million based on per unit

price of BDT 38(wholesale price)

4.7.2 Marketing Objectives:

Achieve a first-year unit sales volume of 125,000 units, which represents a projected

marker share of around 4% in the product line.

Increase second-year share to 5.50%.

Arrange of distribution through the leading retailers and distributors in the country

market within next 6 years

CHAPTER-5

FINANCIAL ASPECTS

4.0 FINANCIAL ASPECT:

This section will offer a financial overview of MAGGI Ketchup as it relates to the marketing

activities.  MAGGI Ketchup will address break-even analysis, sales forecasts, expenses

forecasts and indicate how this activities link to the marketing strategy:

4.1 BREAK-EVEN ANALYSIS:

The break-even analyses indicate that BDT 4,000,000 will be required in sales revenue to

reach the break-even point. Our market research forecasts that within 3 years we will reach

the break-even point.

4.75 6.65 7.6 8.5 10.5

Table. 4.1 Break-even Analysis

Break-even Analysis:

Break-even Units 500,000

Break-even Revenue 4,000,000

Assumptions:

Per-Unit Revenue 38.00

Per-Unit Variable Cost 30.00

Fixed Cost 4,000,000

4.2 SALES FORECAST:

We feel that the sales forecasts group customers into two categories: families and

restaurants. So, both types of customers will lead us to differently forecast of our sales

volume:

Table.4.2 Yearly Sales Forecast

4.3

EXPENSE FORECAST:

Sales Forecast

Sales 2012 2013 2014 2015 2016

FamiliesBDT

3325000

BDT

4655000

BDT

5320000

BDT

5985000

BDT

7315000

RestaurantsBDT

1425000

BDT

1995000

BDT

2280000

BDT

2565000

BDT

3135000

Total SalesBDT

4750000

BDT

6650000

BDT

7600000

BDT

8550000

BDT

10450000

Cost of

Sales

2012 2013 2014 2015 2016

FamiliesBDT

1837500

BDT

2572500

BDT

2940000

BDT

3307500

BDT

4042500

Restaurants BDT

787500

BDT

1102500

BDT

1260000

BDT

1417500

BDT

1732500

Total SalesBDT

2625000

BDT

3675000

BDT

4200000

BDT

4725000

BDT

5775000

Our expenses occur as the result of both historically successful marketing endeavors and

projected marketing programs designed to take advantage of expanding markets and

improved product lines. Similarly, the development of publishing department will incur

higher start-up expenses than maintenance costs after the initial publication. We have chosen

these two new marketing programs as areas where expenses can initially build up because

research indicates that they will cause our market share to increase exponentially over time.

Table.4.3 Yearly Expense Budget

Marketing Expense Budget

2012 2013 2014 2015 2016

Personal sellingBDT

100000

BDT

144500

BDT

165000

BDT

185000

BDT

227500

AdvertisingBDT

600000

BDT

867000

BDT

990000

BDT

1110000

BDT

1365000

Sales promotionBDT

300000

BDT

433500

BDT

495000

BDT

555000

BDT

682500

Total Marketing

Expenses

BDT

1000000

BDT

1445000

BDT

1650000

BDT

1850000

BDT

2275000

Percent of Sales 26.67% 27.50% 27.5% 27.4% 27.6%

CHAPTER-5CONTROLS

5.1 CONTROLS

The purpose of our marketing plan is to serve as a guide for the organization. This marketing

plan includes a detailed budget schedule and managerial assignment for every action

program. For control purpose, the plan also allows for month-by-month comparison of actual

versus projected sales and expense. If there is any mishap in the quality or in the price fixing,

the company will control this for its own sake. A contingency plan, attached, has been

developed for implementation in case of severe downward pricing pressure. The following

areas will be monitored to gauge performance:

Revenue: Monthly and annual

Expense: Monthly and annual

Customer satisfaction: Monthly

5.2 IMPLEMENTATION MILESTONES:

The following milestones identify the key marketing programs.  It is important to accomplish

each one on time, and on budget. Nestle will carry out its marketing strategy and achieve its

objectives through a variety of scheduled programs. We will follow a five years planning to

achieve our profit margin. We will now analyze the year wise action programs as follows:

2012: We have a plan to initiate a -----tk sales promotion to educate dealers and

generate considerable awareness for the product launch in 2009. As part of this push trade

strategy, Nestle will perform personal sales promotion. A volume of ----units will be used for

this purpose. Then advertising programs through the various mass Mediasradio, television,

print, internet etc will be performed to acknowledge people about the product.

2013: In the very beginning of this year, the personal sales promotion will be

withdrawn. We have a target to gain at least the sales revenue of ----tk in this year projected.

By this revenue, we can cover partially the losses of the previous year. To reach the break-

even point next year we have to build the platform. We expect that people are fully aware of

our product now.

2014: This year is very much important for running our business. This year when we

have to reach our break-even point as we expect. We will complete our sales of 500000 units

to achieve no loss-no profit situation. Here we will earn ---------tk of sales revenue, while the

sales promotion will be accelerated with respect to the market demand.

2015: The past three years were to build up the platform for the sales of our product.

In this year we will emphasize on the quality control of our product. To maintain the other

marketing action we may have less emphasize on this task. We will try to maintain the price

same as before. The revenue function may get a downward sloping for the quality control at

the same price. So we have to increase the sales volume at a slight amount. From the very

beginning of the year we have to notice that we are getting nearer to the profitability targeted.

2016: Gaining satisfying profitability is the main target of this year. Further features

should be added to our product. Frequent analysis of the quality of the product will be carried

out for the quality control. Analyzing customer satisfaction is also a vital activity for running

the business.

. 5.3 MARKETING ORGANIZATION:

The chief marketing officer of Maggi, Nestlé Bangladesh Limited is responsible for overall

marketing strategy, direction and implementing it. We have hired the country’s most familiar

marketing channels to handle national sales campaigns, trade and consumer sales promotions

and public relations officer. The following figure shows the structure of the seven person

marketing organization.

5.4 CONTINGENCY PLANNING:

Every business has some risks and difficulties. Similarly, our product may face some risks

and difficulties.

5.4.1 Difficulties and Risks:

Pran possesses the major parts of the market. As a new product, we may have to

suffer if we cannot persuade the consumers.

It is risky in the first year to make every consumer believed that ours’ is the best tasty

and quality product.

From the business view point, the restaurants may not be eager to use new product as

they trust the common ones.

5.4.2The Worst Risks:

Other potential competitors may produce products with the same features.

If the competitors decrease their price, initially we will not be able to decrease our

price as we are just launching our product.

For inflation and decreasing living standard, people may not be willing to buy this

product and this may create the run on of our business.

5.5 The Marketing Program:

Maggi ketchup will use direct selling as the marketing arm to sell its products.

Direct Selling:

We will have the school representatives. They will make their initial presentation to a

school principal. We will do it to make the present guardians familiar of our product and

its taste and quality.

APPENDIX

Bibliography

1. Kotler Philip, Marketing Management, 11th edition, Prentice Hall, 2003

2. Kotler Philip & Armstrong Gary, Principles of Marketing, 11th edition, Prentice Hall,

2006

3. http://www. Nestle .com

4. http://www.nutrition.nestle.com

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