MGT211--management planning of nescafé--term ppr presentation


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Management planning of Nescafé

For Ms. Afsana Akhter's MGT211 class

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MGT211--management planning of nescafé--term ppr presentation

  2. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 16. Thank you ^_^