An Analysis Of Marketing Strategies Of Maggie Recipe Mix
Bring the finest product. To be recognized as the most successful food and Drinks Company in Bangladesh Claim to achieve these goals through the efficient and effective utilization of their three resources - People, Brands and Products.
External Internal Major Macro environment forces The Current Market Analysis Competitor Analysis Internal audit Nestle` Bangladesh Ltd Sales of the Maggie Recipe Mix Market Share Profit Margin/cost Marketing mix variable
Demographic environment Large Population Base Growing Middle & Upper Middle Class Urbanization Natural environment Technological Environment Political-legal environment Economical Environment GDP Employment Rate
Product: Recipe mix. Launched only in Dhaka in 2002 Launched nationally in 2003. Nestle is trying to set its brand name Maggie. Price The current price of the recipe mix in Dhaka city is competitive excepting the local company. present pricing strategy of Nestle is attracting considerable customers.
Physical distribution and channel 47 distributors. Local groceries. Target market and Market Segmentation Existing Consumers. Potential Consumers.
Major competitors Size and market share of competitors Square Ideal Shaan Pran Tiger
Imported products of Nestle are better in quality than local products. This has challenged the local companies to offer maximum quality products. Square and Pran are improving the qualtiy of their product to hold their image and reputation in the spices market.
Competitors have developed their market share differentiating their product offering . Square:- Intensive promotion and campaign. Charge lower price compared. Own in built distribution channel . Pran:- Strategy based on promotional campaign. Charges lower price than square or at least remain at the level. Own in built distribution channel. Employs sales personal to explain the product to consumers
Tiger:- Local company whose strategy is based more on lower pricing than emphasis on higher quality. Promotion campaign is weaker than the other brands. Sales person moving from home to home to explain their product. Shaan:- Strategy is based on intensive promotion campaign. Focuses on foreign brand image. Its effort is also to keep the price level not much higher then the local products especially Nestle`.
Strengths Weakness Square Low price with considerable brand image. In built distribution channel Utilization of local raw Square Late entry of Square into the recipe mix market Pran: Low pricing they also uses local raw materials Has well in built distribution channel. Its brand image is also gradually developing. Pran Late entry of Pran into the recipe mix market Tiger: This company strategy is to offer lower price products with minimum quality however their market segments are lower middle class. Tiger: Low quality of the product. Low brand image. Shaan Its main strength is its foreign brand image. Shaan Payment of heavy duty to government. High price
Nestle started its journey in Bangladesh in 1982 by appointing Transcom Ltd. as the sole distributor. It was then incorporated in 1994 as a joint venture company with Transcom Ltd. Nestle took part in the marketing and Transcom Ltd in the distribution. From 23 rd June 1998 Nestle took over 100% of its product shares in the market. Nestle trying to set brand name as Maggie.
Nestle` Bangladesh Ltd Sales of the Maggie Recipe Mix Beef Bhuna, Chicken Rezala, Fish Curry .
Fixed costs of Nestle are very high and accounts for approximately 60% of the total production cost. Variable costs account for around 12% of the total cost of production.
Products o Beef Bhuna, o Chicken Rezala, o Fish Curry. Price Reasonably competitive but it needs to be more competitive in order to achieve more market share. Distribution Well equipped group of 47 distributors all over Bangladesh. Promotion Spending a huge sum of money on campaigning.
Opportunities Huge number of women have engaged themselves in jobs. Societal trend. Changes in lifestyle. Trend of increased growth in middle class. Threats New entrants. Cheaper price of the competitors. High inflation rate will increase operating cost. Devaluation of currency as Nestle needs to repatriate money abroad. Hindrances in the transportation due to political reasons or natural disasters
Strengths Has a brand image in the market Invested a huge amount of money on R & D Has a good and effective distribution channel Has strong financial back up Weakness Higher Price. People not still aware of the product. Lack of clearly defined promotional strategies.
Bangladesh is having large population. More female workforce. Total cost of the recipe mix is going up Make changes in the pricing of the product, promotion and distribution. Competitors having benefit of low pricing through preparing recipe mix from local raw materials.
Capture market share of 5% of the 100 cores worth recipe market by the end of next year. Add more market segment in the product line. Extend product line of the Maggie recipe mix
Products: Due to strong competition more products should be in market. Price: Price needs to be more competitive. Promotion: Extensive promotional strategies, sponsoring popular programs. Distribution: Strong alliance with general stores, grocery shops and super market.
Marketing unit is organized by regions. Coordination
Setting Performance Standard In terms of promotions, a prospective consumers roster is maintained. Product Activities – Rate of sales. Pricing Activities – Amount of sales. Promotion Activities – Number of consumers repeating the purchase. Distribution Activities: · Target achievement set by the company, · Distribution/Coverage of target area, · Control Market returns, · Distribution Management. EVALUATION AND CONTROL
If company fails to reach the sales target, then a probing or fact finding research should be undertaken to find out the changes in the marketing-mix needed. In terms of promotions, the level of sales achieved on each of the promotional tools should be the judging criteria while assigning promotional budget for the next phase of sales.