Activation plan 4275


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Marketing Plan for Nestle

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Activation plan 4275

  1. 1. ’’ An Objective Study of Current Merchandising Activities of Nestle Bangladesh Ltd. (NBL) and It’s Role on Point of Purchase Along With Some Recommendations for Improvement’’
  2. 2. Problem Definition <ul><li>Point of Purchase </li></ul><ul><li>Merchandising </li></ul><ul><li>Outlet Space </li></ul><ul><li>Acquiring Space </li></ul>
  3. 3. Point of Purchase??? <ul><li>The Point of Purchase is any place where the shopper makes a decision to purchase a certain product. </li></ul><ul><li>It is a decisive moment when all previous marketing activities stand or fall. </li></ul><ul><li>It is commonly known as retail outlet which is called by Nestle as trade. </li></ul>
  4. 4. Merchandising??? <ul><li>Merchandising is the systematic display of product to inform customers about product attributes and thus maximizing opportunities to purchase a brand from that of its competitors. </li></ul><ul><li>It is a vital factor to win at POP. </li></ul>
  5. 5. Effect of Space Allocation on Sales <ul><li>Space allocation has no effect on completely brand loyal consumers. </li></ul><ul><li>Consumers’ brand choice may be influenced by one or more in-store merchandising factors- including space. </li></ul>
  6. 6. Objectives: <ul><li>General Objectives: </li></ul><ul><li>To discuss about merchandising activities of NBL at point of purchase. </li></ul><ul><li>To discuss about trade space acquiring strategy of Nestle Bangladesh limited. </li></ul>
  7. 7. Specific objectives <ul><li>To find out trade point of view regarding merchandising of products. </li></ul><ul><li>To compare the sales status between space & non space outlet. </li></ul><ul><li>To find out the impact of product visibility. </li></ul><ul><li>To compare the sales status between outlets based on frequency of Merchandiser visit. </li></ul><ul><li>To identify the role & importance of planogram for proper merchandising. </li></ul>
  8. 8. Specific objectives (Contd.) <ul><li>To discuss about bad goods control through proper merchandising. </li></ul><ul><li>To identify problems regarding merchandising of products & trade space management & also to provide some feasible solution. </li></ul><ul><li>To identify the problems in different activities regarding trade space management and making effort to provide feasible solution. </li></ul>
  9. 9. Methodology <ul><li>Primary Data </li></ul><ul><li>Unstructured interview with traders of different area. </li></ul><ul><li>Formal conversation with some managers and employees of Nestle Bangladesh Limited </li></ul><ul><li>Observation of the office works and different activities of the officials during internship period. </li></ul><ul><li>Secondary Data: </li></ul><ul><li>Periodic Sales Data from NBL </li></ul><ul><li>Journal of NBL </li></ul><ul><li>Related books </li></ul><ul><li>Website of Nestle </li></ul><ul><li>Internet </li></ul>
  10. 10. Strategy of NBL at POP <ul><li>Regular Display of NBL products by permanent merchandiser operations. </li></ul><ul><li>Conducting Space Management Program for acquiring permanent shelf space. </li></ul><ul><li>Implementation of channel focused Plan-o-gram. </li></ul><ul><li>Customer engagement through periodic display drives/contests. </li></ul>
  11. 11. Merchandiser Activities 0f NBL <ul><li>Permanent Merchandisers </li></ul><ul><li>Frequency of Merchandiser Visit(F2,F4,F8) </li></ul>
  12. 12. Benefits received by NBL from Merchandising <ul><li>Better VISIBILITY </li></ul><ul><li>Ensure FRESHNESS of Stocks </li></ul><ul><li>Helps in REPEAT Sales </li></ul><ul><li>Stimulates purchase </li></ul><ul><li>Increase the sales of other related products </li></ul><ul><li>Increases PROFITS </li></ul><ul><li>Bad goods controlling </li></ul>
  13. 13. Sales Impact of Merchandising Figure 6: Growth comparison between outlets of different frequency of merchandiser visit
  14. 14. Bad Goods Controlling by Merchandising Figure 7: MR comparison between the outlets of different frequency of merchandiser visit.
  15. 15. Bad Goods Controlling by Merchandising Figure 8: Market Return Comparison between space & non space outlet
  16. 16. Problems regarding merchandising <ul><li>Lack of cooperation from retailer end </li></ul><ul><li>Insufficient product stock </li></ul><ul><li>Different store format </li></ul><ul><li>Merchandiser waste time </li></ul>
  17. 17. Planogram??? <ul><li>Planogram is a diagram of fixtures and products that illustrates how and where retail products should be displayed, usually on a store shelf in order to increase customer purchases. </li></ul>
  18. 18. NBL Planogram <ul><li>Sequence-as per age of feeding </li></ul><ul><li>Stage concept </li></ul><ul><li>Guideline on BIB pack </li></ul>C3-MxF 400g L1-400g L2-400g NSC- NS Mag-Box Mag-Box L3-400g C1-3F 400g C1-3F 400g C1-Wh 400g C1-Wh 400g C2-ApC 400g C2-ApC 400g N1-200g C3-MxF 400g L2-400g N1-200g N2-200g N2-200g N3-200g N3-200g L1-200g All110 Nid3+ Nid2+ Nid-Gm Nid-gm NSC-5 NSC-50g
  19. 19. Problem Regarding Planogram <ul><li>Retailers are not familiar </li></ul><ul><li>Planogram guidelines are not always accepted by retailer </li></ul><ul><li>Planogram is not properly maintained. </li></ul>
  20. 20. Space Management Program <ul><li>Acquiring permanent shelf space through space remuneration which strategic goals are: </li></ul><ul><ul><ul><li>Competitive advantage in a stable way </li></ul></ul></ul><ul><ul><ul><li>Motivation of traders </li></ul></ul></ul><ul><ul><ul><li>Dominate the outlet through capturing more shelf space </li></ul></ul></ul><ul><ul><ul><li>Sales Development </li></ul></ul></ul><ul><ul><ul><li>Building corporate image </li></ul></ul></ul><ul><ul><ul><li>Ensuring Product Visibility </li></ul></ul></ul><ul><ul><ul><li>More influence on Trade </li></ul></ul></ul>
  21. 21. Space Capturing by Space Management Program Sq. Ft Sq. Ft Sq. Ft Sq. Ft No. of Outlets No. of Outlets No. of Outlets No. of Outlets 2004 2005 2006 2007 2004 2005 2006 2007 48,000 54,304 60,733 64141 4800 5048 5960 6278
  22. 22. Positive influence of SM program <ul><li>Outlet domination </li></ul><ul><li>Trade Motivation </li></ul><ul><li>Attract customer </li></ul><ul><li>Improved efficiency </li></ul><ul><li>Business development </li></ul><ul><li>Informed Consumer Choice. </li></ul><ul><li>Increasing stock depth </li></ul><ul><li>Competitor blocking </li></ul><ul><li>Simplifying Shopping Experience </li></ul><ul><li>Corporate image Development. </li></ul>
  23. 23. Negative Impact of SM Program <ul><li>Greater impact during out of stock </li></ul><ul><li>The space fee can make the retailers greedy. </li></ul>
  24. 24. Problems regarding SM program <ul><li>Unused shelf space & Cost Effectiveness of SM program </li></ul><ul><li>Inappropriate forecusting of customer demand & retailer purchasing ability </li></ul>
  25. 25. Acquiring shelf space without space remuneration <ul><li>Personal relation </li></ul><ul><li>High off-take </li></ul><ul><li>Technical binding </li></ul><ul><li>Display contests </li></ul>
  26. 26. Comparative Status between Space & Non Space Outlet Figure 2: Percentage contribution of total SM & Non SM outlet in Savar Figure 1: Percentage of total SM & Non SM outlet in Savar
  27. 27. Generating demand through Display schemes <ul><li>Display Contests for the top 3 Brands </li></ul><ul><li>Display linked Trade Promotion </li></ul>
  28. 28. Impact of display program on Sales Figure 5: Growth Comparison between display outlet & non display outlet
  29. 29. Display Unit <ul><li>Customized display unit </li></ul><ul><li>Acquiring more space </li></ul><ul><li>Brand image development </li></ul><ul><li>More brand visibility </li></ul>
  30. 30. Trade Perception Regarding Nestle In Store Merchandising Activities <ul><li>Product Display </li></ul><ul><li>Merchandising Activities </li></ul><ul><li>Corporate Image Development </li></ul><ul><li>Satisfaction </li></ul>
  31. 31. Conclusion <ul><li>Differentiating outlet by innovative in store merchandising </li></ul><ul><li>Enrich the experience of consumers with a mutual benefit of retailers and the company. </li></ul>
  32. 32. Recommendations <ul><li>Proper forecasting of customer demand for specific outlet. </li></ul><ul><li>Facing criteria should be aligned with retailer’s consistent purchasing ability. </li></ul><ul><li>Customized & store-specific solutions are needed. </li></ul><ul><li>Planogram concept should be made more clarified among merchandisers and retailers. </li></ul>
  33. 33. Recommendations <ul><li>Greater emphasis to improve merchandiser influence on trade </li></ul><ul><li>Maintaining proper stock </li></ul><ul><li>Further Study is needed to know the percentage benefits of getting extra facing of specific product. </li></ul><ul><li>Focus on SM outlet because there is a huge investment in these outlets. </li></ul>
  34. 34. Questions ???
  35. 35. <ul><li>Thank You </li></ul>