Market review of nutrition product in nepal by Uttam Raj Regmi
MARKET REVIEW OF NUTRITION PRODUCT (LITTO) IN NEPALI. Nutrition ProductAccording to the new WHO Child Growth Standards, under nutrition is significant in Nepal,with one in two Nepalese children under five years of age stunted ( short for their age), and 39percent underweight. Micronutrient deficiency is an important cause of childhood morbidity andmortality. Nearly one in two Nepalese children age 6- 59 months are classified as anemic, 22percent moderately anemic and less than 1 percent severely anemic. This shows a huge demandof baby nutrition products in Nepal.The commercial manufactures are marketing their products in cities to target the upper class andmiddle class customers. The urban market is lucrative for them as the customers are willing topay premium price for the products. The demand for the baby products like CERELAC andSarbottam Litto is increasing due to the rapid urbanization of cities. Women taking professionaljobs like that of their male counterparts have been escalating.But, the commercial products are confined to the cities. They are reluctant to sell the products inrural areas, as the market size for their products is very small. The products are unaffordable tothe rural people due to high Market Retail Price (MRP).Nevertheless, there is a huge demand for baby nutrition product in rural areas as peopleswillingness to purchase pre cooked packaged baby nutrition products is increasing. Anecdotereport suggests that the housewives of rural districts are ready to purchase the product if theMRP is at affordable range.The data from the 2006 NDHS reveals that the child mortality rate is consistently higher in ruralareas than that of urban areas. And the deficiency of micronutrients contributes significantly inmalnutrition and high child mortality rate. These facts indicate a potential for high demand ofbaby nutrition products in the rural areas.COMPETITION REVIEWNestleNestlé is a multinational packaged food company founded and headquartered in Vevey,Switzerland and listed on the SWX Swiss Exchange with a turnover of over 87 billion SwissFrancs. It originated in a 1905 merger of the Anglo-Swiss Milk Company for milk productsestablished in 1866 by the Page Brothers in Cham, Switzerland and the Farine Lactée HenriNestlé Company set up in 1866 by Henri Nestlé to provide an infant food product.
In 1867, Henri Nestlé, a pharmacist invented the first infant milk cereal to overcome themalnutrition problem at that time. Today continues that pioneering heritage by developingscientifically advanced nutrition to address the needs of growing children all over the world.Nestlé has put 135 years of experience in infant nutrition to arrive at the Nestlé DevelopmentalNutrition Plan. This plan is designed to provide the baby with the right nutrition and eatingexperience during infancy. As the baby progresses from Stage 1 through to Stage 3, the NestléDevelopmental Nutrition Plan offers tastes and textures, while helping develop a well-balancednutritious eating habit.All three stages of Cerelac Manufactured by Nestlé India Limited are available in the Nepalesemarket. The net weight of 375 gm Nestle Cerelac is available in an attractive packaging. Thepack provides the complete information related with products like preparation steps, MarketRetail Price (MRP),expiry date,manufacturers name,and nutrition plan. TheMarket Retail Price ofthe product isapproximately Rs 200.Nestle has taken thelead role in CorporateSocial Responsibility(CSR) and SocietalMarketing as in each pack " Mothers Milk is Best for Your Baby" is highlighted. Similarly, thepack provides information on immunization like what vaccines a child ought to receive startingfrom the day of birth until 16 years.The ingredients that one pack of Cerelac contains are wheat flour, milk solids sucrose, corn oil,matodixtrin, vitamins and minerals.
Shakti Sarbottam LittoPasupati Food Products manufactures Shakti Sarbottam Litto. The product has attractive,packaging and labeling. The net weight of the product is Rs 500 gm, and the Market Retail Priceis Rs 80. The product contains ingredients such as, Soybean 25 %, Maize 20 %, Gram 20%,Wheat 20 %, Peanuts 5 %, Sugar 5 %, and Cashew 5 %.The 100 gms of Shakti Litto contains 17.7 gm Protein, 5.2 gm Fat, 73.2 mg Carbohydrate, 51.03mg Calcium, 13.8 mg Iron, 430 u Vitamin A, 45 u Riboflavin, 7 u Niacin, and 32 u Folic Acid.Besides, information on preparation of Shakti Litto is provided in the packaging.The product has a clear positioning as a picture of smiling child is shown in the pack. However,the product lacks clear marketing objective, as it has no clear product differentiation. Thepackaging, pricing, and promotion strategy is similar with that of Chaudharys SarvottamPremium Litto. The product falls in the "me to products" category.Sarvottam Premium LittoChaudhary Group, the First Nepalese Conglomerate with over 40 Companies under its umbrella,today commands an investment outlay of over US $250 million. Being the first Nepaliorganization to have a distribution network spanning the subcontinent, it has made substantialpresence in South Asias fiercely competitive Food and Beverages market.Chaudharys Sarvottam Premium Litto is ISO 22000: 2005 food safety management systemcertified product. The net weight of the product is 400 gms and Market Retail Price of theproduct is Rs 80. The product is available in Apple flavor with extra Calcium and Iron. Equally,the Litto is fortified with vitamins and minerals.
The product contains ingredients such as Wheat, Soybean, Rice, Whole Milk Powder, Sugar,Dextrose, Corn fat; Vitamins, Minerals, and Apple concentrate with added micronutrients per100 gm. The nutrient value per 100 gm consists of Protein 16.78 %, Carbohydrate 65.17 %, Fat6.25 %, Moisture 7.95 %, Dietary Fiber 1.85 %, Calcium 210 mg, Iron 13.5 mg, and Energyvalue 400 K Calories.The product has a smart packaging; the branding is distinct and superimposed. The Applecontent is highlighted in a circle. The packet provides information on preparation and properstorage of the product.Unbranded LittoThe Litto manufactured and marketed by Multi Purpose Resource Center of FPAN falls underthis category. The product is manufactured in small scale using locally available ingredients andpackaging materials. The product is targeted to the rural households having low income. Thetarget groups of the product are rural housewives who want their babies to be healthy and strong.The Litto contains all the essential nutrients such as proteins, vitamins, and minerals required forchildrens growth.
References: 1. Annual Report, Department of Health Services, 2006/2007 2. Fundamentals of Marketing Decisions, K.D. Koirala, 2004 Edition, M.K.Publisher & Distributors, Kathmandu, Nepal 3. Marketing Management, 10th Ed. ( The millennium Edition) By Philip Kotler 4. Nepal Demographic and Health Survey, 2006 Report 5. Strategic Plan , 2005 -2009, Family Planning Association of NepalPrepared by: Uttam Raj RegmiMA Sociology, Tribhuvan University NepalMBA Pokhara University NepalBSCE (Civil Engineering) University of Baguio, PhilippinesAddress: Dhapasi 6, Kathmandu, NepalEmail: firstname.lastname@example.org