We are comparing two brand Nestle & Brac, Brands product are Nestlé‟s Powder Milk & Aarong powder milk, Nestle is an international brand its product is Nido powder milk, Brac is Bangladesh local brand its product is Aarong powder milk. We are comparing two companies Mission, vision, strategy, marketing policy, Social Statement with international brand to local brand.

1. Shanto-Mariam University of creative technology
Program: MBA in Product & Fashion Merchandising.
Course: Name: Brand Management (MMBA-805)
Assignment
On
Compare a local brand with an international brand in similar product.
Prepare For:
Mr.Shah Waliul Manzoor
Lecturer of SMUCT
Department of MBA
Prepare By:
Md.Belal Uddin
ID: 142153024
4rd
Semester
8th
Batch
SMUCT

2. Introduction:
We are comparing two brand Nestle & Brac, Brands product are Nestlé‟s Powder Milk &
Aarong powder milk, Nestle is an international brand its product is Nido powder milk,
Brac is Bangladesh local brand its product is Aarong powder milk. We are comparing
two companies Mission, vision, strategy, marketing policy, Social Statement with
international brand to local brand.
About Nestlé
Nestlé S.A. is a Swiss transnational food and beverage company head quartered
in Vevey, Vaud, Switzerland. It is the largest food company in the world measured by
revenues, and ranked #72 on the Fortune Global 500 in 2014.
Nestlé‟s products include baby food, bottled water, breakfast
cereals, coffee and tea, confectionery, dairy products, cream, frozen, pet foods,
and snacks. Twenty-nine of Nestlé‟s brands have annual sales of over CHF1 billion
(aboutUS$1.1 billion), including Nespresso, Nescafé, Kit
Kat, Smarties, Nesquik, Stouffer‟s, Vittel, and Maggi. Nestlé has 447 factories, operates
in 194 countries, and employs around 339,000 people. It is one of the main
shareholders of L‟Oreal, the world‟s largest cosmetics company.
Dairy
Dairy is the single biggest category for us in terms of volume, with 14.2 million tonnes of
fresh milk equivalent bought in 2014, through Farmer Connect and sourced from Tier 1
suppliers.
We use milk and milk derivatives as ingredients in a range of our products, including ice
cream, beverages, confectionery, infant nutrition and culinary products.

3. Nido
The brand offers a complete range of milk and milk-
based products that offer nutrition solutions for each
stage of childhood. The Nido brand is trusted by
mothers, with a taste that kids love. With its focus on
providing a nutritional foundation for growth and
development, Nido brand has been helping mums
around the world care for and nurture children for
the past 70 years.
Nido products feature instant dry whole milk with
Vitamins A & D. It is a good source of calcium to
help children develop and maintain healthy bones
and teeth.
Nido Kinder 1+ is non-fat powdered milk that is
fortified with Prebio 1, a prebiotic fibre that benefits a child‟s digestive system.
Our vision
DYNAMIC GLOBAL
NETWORK: Behind every Nestlé
product is a team of people committed
to creating safe products of the highest
quality.
People understand that food is a
source of nourishment and satisfaction,
but also pleasure, health, happiness
and peace of mind. They are
increasingly aware that their food and beverage choices can impact their quality of life
and affect the lives of others.
Innovation has been at the heart of our company since its beginning. Ever since Henri
Nestlé invented Farine Lactée to alleviate infant mortality, we have been dedicated to
enhance people‟s lives.

4. Each day we strive to make our products tastier and healthier choices that help
consumers care for themselves and their families. This would not be possible without
our unmatched R&D capability, nutrition science and passion for quality in everything
we do.
We have the largest R&D network of any food company in the world, with 34 R&D
facilities (3 Science & Research centres and 31 Product Technology Centres
and R&D centres worldwide), and over 5,000 people involved in R&D.
Behind every one of Nestlé‟s products there is a team of scientists, engineers,
nutritionists, designers, regulatory specialists and consumer care representatives
dedicated to earn our consumers‟ trust with safe products of the highest quality: at
Nestlé, safety and quality are non-negotiable.
Whether it is in terms of convenience, health or pleasure, we are able and committed to
create trustworthy products, systems and services that contribute to improving the
quality of consumers‟ lives.
Mission Statement
Our vision is to be the leading Food and Beverage Company in the Caribbean Region,
providing our customers with high quality products and services with added value at
competitive prices, simultaneously ensuring the long term viability and profitability of the
organization.
Our Mission demands that:
We are seen as a friendly, caring and efficient organization whose primary focus is on
providing consumers with safe and convenient high quality food products.
We are conscious of our role, as a leading corporate citizen, one which requires us at all
times to be in tune with and responsive to the social, environmental, economic and
cultural aspirations of the Caribbean people, whilst ensuring our shareholders a
reasonable return on their investment.
We are seen as an ideal place of employment with good working conditions and
benefits, with an internal environment in which our staff can achieve job satisfaction,
self-development and their reasonable aspirations.
We are viewed as a perfect example of an enlightened, innovative, modern Caribbean
corporation with progressive and dynamic leadership that is supported by highly
professional, committed, loyal and dedicated employees.

5. It is understood that in order for us to realize our vision we have to continue to strive to
earn the recognition and satisfy the trust our customers and business partners place in
Strategy
Our ambition is to be the world‟s leading Nutrition Health and Wellness company, and
the industry reference for financial performance, trusted by everyone.
For 150 years we have helped generations of people and pets live healthy, happy lives,
by providing innovative, science-based products and services that enhance their quality
of life, everywhere and every day.
Our success is due to our ability to anticipate the future and continuously adapt
ourselves to the opportunities it presents. Nestlé Roadmap to Good Food, Good Life
The Nestlé Strategic Roadmap is our compass, and it ensures that we take the right
direction to fulfil our goals. The roadmap shows the strengths we draw upon to drive
performance and deliver competitive advantage.

6. However, leadership in business is not just about size, it is also about behaviour. It is
our fundamental belief that to be successful over the long term we need to create value
for our shareholders, while at the same time creating value for society. We call
this Creating Shared Value.
This long-term view is framed by a robust set of principles and values that are based on
respect: respect for people, respect for the environment, and respect for the world we
live in. By following these we strive to meet the needs of people and pets today and
tomorrow.
Policies
Nestlé respects the environment, supports sustainable development and is committed
to environmentally sound business practices.
To fulfill this commitment, Nestlé:
Integrates environmental principles, programs and practices into each business;
Strives for the continuous improvement of its environmental performance through
application of the Nestlé Environmental Management System (NEMS);
Complies with applicable environmental legislation, Where non exist, Nestlé's own
internal rules are applied;
And Provides appropriate information, communication and training to build internal and
external understanding concerning the Company's environmental commitment
R&D
Research and Development is a key competitive advantage for Nestlé. Without our R&D
Nestlé could not have become the food industry leader in nutrition, health and wellness.
With 29 research, development and technology facilities worldwide, Nestlé has the
largest R&D network of any food company. Nestlé‟s research, development and
technology network, together with local market application groups, employs over 5,000
people.
Nestlé further strengthens its R&D capability through Innovation Partnerships at each
stage of the product development process – from early stage collaborations with startup
and biotech companies to late stage partnerships with its key suppliers.

7. By bringing together all of its global R&D resources, Nestlé is able to provide high
quality, safe food solutions for consumers worldwide – whether this is in terms of
nutrition, health, wellness, taste, texture or convenience. Above all, Nestlé brings to
consumers products that are of the highest quality. And safety is non-negotiable.
R&D is also critical in ensuring regulatory compliance of all Nestlé products. Nestlé is
able to launch new products quickly and efficiently, in countries all over the world, by
integrating regulatory affairs in all its R&D activities, from start to finish.
Nestlé scientists also play their part in communicating the health and wellness benefits
of products to consumers. Nestlé nutritionists world-wide work to ensure that all nutrition
communication, both on and off pack, is locally relevant, as well as scientifically sound.
Beyond sound nutrition, the future of foods will increasingly be driven by science. Nestlé
scientists are looking ahead to the foods of the future. Nestlé R&D is translating nutrition
and food science in two ways:
From consumer needs into research priorities, from emerging science into consumer
benefits, and services
The vision of Nestlé R&D is long term. A glimpse of how Nestlé R&D is helping to shape
the future of foods is provided through these internet pages.
Bringing life to milk
NUTRITIONALLY ENRICHED MILK PRODUCTS: Sri Lankan school children
enjoy Nespray, a locally-sourced, fortified, affordable milk product
Dairy products are considered to be a foundation of health for many cultures. At Nestlé,
we leverage the best of our science and product expertise to provide families with both
nutritionally enriched milk products and delicious dairy treats.

8. While our dairy products have many natural nutritional benefits, such as provision of
calcium, sometimes they need to do more. At Nestlé, we are proud to offer affordable
dairy products that also help to address local micronutrient deficiencies, particularly in
developing countries.
Addressing Micronutrient Deficiencies Through Affordable Milk
Micronutrient deficiency is a widespread problem, particularly in the developing world. It
has been estimated that micronutrient deficiencies account for more than 7% of the
global incidence of disease and, according to the World Health Organisation, around 1.5
million deaths a year can be attributed to a lack of iron and vitamin A.
Micronutrient malnutrition is most common in the developing world, where those on
lower incomes cannot afford to augment dietary staples, such as cereals, with more
micronutrient-rich meat, fish, poultry and eggs. However, milk is naturally rich in calcium
and a good carrier of micronutrient fortification, making it a viable, long-term way to
deliver more nutrition to large segments of the population.
The Nestlé range of children‟s milk brands (Nido, Ninho, Bear Brand, Klim, Ideal) have
been developed especially to offer the energy, protein and micronutrients needed by
growing children. To make these products accessible for lower-income groups, Nestlé
makes these milks available in affordable formats. These products are also fortified with
iron, zinc, vitamin A and other micronutrients as appropriate for the micronutrient
deficiencies prevalent in each area.
At the end of 2005, the affordable milk range was present in just five markets; today our
affordable fortified milks are present in more than 67 countries, making a positive
difference in the lives of children around the world.
Working with dairy farmers

9. MILK COLLECTION CENTRE: Nestlé buys fresh milk from some 40 000 Chinese
farmers and provides them with an overall regular income of around CHF 500 000 per
day, fostering rural sustainable development for the communities concerned.
At Nestlé, we strive to do more for the farmers and communities who supply us milk
through our Milk District Model.
The goodness of milk
Nutrition and wellness have always been at the core of Nestlé products, and milk has
always been an important part of this equation. Founded in 1866 in Switzerland, Nestlé
grew from two small companies producing milk-based products, into the world's
foremost nutrition, health and wellness company
Today, in terms of sales value, Nestlé is the world‟s largest milk company, sourcing
more than 12 million tonnes of fresh milk equivalents from more than 30 countries. We
purchase more than half of our milk locally as fresh milk (close to 7 million tonnes per
year).
Working with farmers
Nestlé works with more than 600 000 farmers – most of whom operate small farms – to
have a reliable, safe and high-quality milk supply.By adapting the Swiss Milk District
System to dairy farming in developing countries around the world, the Nestlé proven
and systematic approach is able to contribute to poverty reduction and improved
nutrition on a wide scale.
The Nestlé Milk District Model involves:
Milk collection centres featuring payment systems, quality and safety controls,
electronic weighing equipment and cooling tanks.
Free technical and animal husbandry support to improve milk quality.
Free veterinary services.
Transportation and infrastructure networks.
USD 25 million of microfinance loans each year.
Prompt payment to farmers for each milk delivery.
Benefiting many countries
The Nestlé experience in assisting farmers, creating Milk Districts and dairy industries is
evident in over 30 countries. Here is a sample of some of the community benefits from
Nestlé Milk Districts:

10. WOMEN'S DAIRY DEVELOPMENT PROGRAMME: The Village Women Development
Programme in Moga in northern India has trained 30 000 women dairy farmers.
China - Nearly 24 000 farmers in Heilongjiang, north-east China, deliver their fresh milk
to 78 milk collection centres. Nestlé invests nearly USD 200 million a year into the local
economy through milk payments, taxes, services and salaries.
Colombia - Nestlé is the third largest buyer of milk in Colombia where our two milk
districts produce 226 000 tonnes a year. We pay around USD 5 million a month to 4 000
local dairy farmers, and a further 10 000 people in the region work in the milk supply
chain as milkers, rural workers, transporters and traders.
Career development
At Nestlé, we know that it is our people who set us apart and spur our success year
after year. We‟re only able to hit our targets because they hit theirs. So we‟ve created a
high performance culture that puts the emphasis on diversity, innovation and growth
and this enables their development and ultimately ours.

11. As a professional, you‟ll find you have a wider sphere of influence and more freedom
than elsewhere. So you‟ll be able to broaden or deepen your existing job responsibilities
as well as having the opportunity to progress upwards.
There are three factors that will shape your career growth at Nestlé:
Core factors. These are non-negotiable; they are the qualities you must have if you‟re to
make the most of all the opportunities we have to offer. They include your sustainable
performance, the knowledge and skills you have about your function, the business and
yourself, plus your leadership skills and critical experience.
Accelerators. This is the name we give to the qualities that will determine how far and
how fast you progress and develop. These include your mobility, your flexibility to move
between functions and categories, how well you network and how open you are to new
experiences.
Opportunities
These are the factors that are more dependent on circumstances and activities
elsewhere in the business. Opportunities can spring from new roles, new positions and
new assignments overseas.
Talent Assessment and Succession Planning
Succession Planning is the way in which we plan career development and fill middle
and senior-level jobs. We are very methodical about how we plan this process. Nothing
is left to chance. Our succession plans cover all the key jobs in Nestlé and include a list
of forecasted potential successors for those roles. At any one time, we know exactly
how well these successors are performing and how close they are to taking on the next
role in their development.
Importantly, our succession plans are created with input from multiple sources. In other
words we take a very rounded view of development. We look at our employees‟ career
history and Talent Assessments, their Performance Evaluation results and other
relevant development data.
Revealing your potential
From experience, we know that to design high-quality development plans it is crucial to
apply the 70/20/10 model. This states that experienced-based activity has the highest
impact on professional and personal development, relationship-based approaches such
as feedback and coaching account for 20% of impact and formal training has the least
effect on how fully and quickly people develop. So with this in mind, we apply a variety
of learning approaches to bring the most out of your potential.

12. Our Corporate Mentoring Programme will help you to accelerate your development
through relationship-based support, transfer of experience, of key insights and unwritten
rules as well as bringing exposure to the areas beyond the current role.
Our International Training Centre in Switzerland will provide you with a variety of
programmes and courses to exchange knowledge and share ideas with colleagues from
other countries.
There is always an opportunity to deepen your expertise and develop leadership by
getting an international experience. We have over 2000 expatriates in some 96
countries. Together with other multinationals we have launched an exclusive network
that help dual career spouses with their local job search as well as professional
integration in a new country.
Nestle work life
Diversity
Diversity has only just reached the top of most corporate agendas, but at Nestlé it‟s
been the foundation of what we do for years. Strong, multi-cultural diversity has shaped
our success and culture. We work hard to integrate in every community to which we
belong – and we place the highest value on the unique perspectives that our people
bring us. We‟re open about the motivations behind this. Yes, we believe we have a
social responsibility to promote diversity, but equally we know it sharpens our
performance and gives us an advantage over our competitors.
One of the areas in which diversity makes the biggest difference is in the gender mix.
We‟ve made it a priority to make sure we‟re making the best of the talents of both men
and women. Again, this isn‟t simply because it‟s the right thing to do – it‟s also because

13. we‟ll only achieve our potential if all our people achieve theirs. So we‟re working hard to
develop an environment, culture and leadership approach that provides equal
opportunities for everyone, in every level.
Employee Health and Wellness
Our vision and values should shape everything we do. We believe strongly that they
should be lived and experienced every day. By providing our people with a healthy diet
and sporting activities, we support our principle of „healthy minds in healthy bodies,‟ and
create the healthy workforce that sets us apart.
With this in mind, most of our markets have implemented Employee Health & Wellness
Programmes that reflect the specific needs and expectations of their people. These
include weight management plans, disease prevention, daily childcare, flexible benefit
schemes and flexible work arrangements.
Safety and Health
Nestlé is founded on caring: for our consumers, for the communities to which we
belong, and, most fundamentally, for our colleagues. Not surprisingly, safety and health
is fundamental to everything we do. We don‟t accept compromises in this area. One
accident is one too many for us. The focus then is on finding new and more inspiring
ways of engaging everyone in the business with these issues and to build on the
success we‟ve already had. Our safety and health performance has improved
significantly, but we‟re committed to achieving zero accidents and that means we need
to lead the world in our thinking and practices.
We hope this gives you a good sense of our commitment to our people. For more
information about our performance in Diversity, Employee Health & Wellness, Safety
and Health and other people-related topics visit our Creating Shared Value page.
The challenge
Excelling here means sharing our passion for enhancing lives; it means taking
ownership of your future and remaining open to the unique learning opportunities that
will come your way. We encourage our people to view their career as a journey. There
are ongoing opportunities here to step up, broaden your exposure or deepen your skills.
Flexibility and the ability to take the long view are essential. But, rest assured, with over
2,000 leading brands and a passion for improvement, nothing stands still for long in
Nestlé – least of all talented young professionals.

14. BRAC Dairy & Food Project
Foundations
BRAC‟s microfinance programme used to enable farmers to buy land and cows in order
to produce milk. While BRAC helped these farmers to generate income through micro
financing, dairy farmers still did not have consistent access to the market. The demand
of milk in a single village was not enough to generate a hefty profit. A lot of milk lay to
waste because dairy farmers did not have enough demand to sell their milk and no
proper refrigeration to store the unsold milk. Sir Fazle Hasan Abed, founder of BRAC,
noticed this problem and proposed establishing a milk factory to collect milk from local
farmers for a fair price. As a result, BRAC initiated BRAC Dairy & Food Project (BDFP)
in 1998 to serve as a market for dairy farmers throughout rural Bangladesh.
Mission
BDFP‟s original mission was to grant farmers market access, ultimately helping them
generate income. Over time, BDFP‟s goals have expanded to serve high quality milk
product to their customers. With inconsistent electricity and therefore refrigeration, dairy
products generally are not widely available in Bangladesh. 85 percent of Bangladesh
still relies on the „informal‟ milk market which delivers bulk amounts of raw milk to
consumers. BDFP caters to the 15 percent of Bangladeshis who rely on the formal milk
market which sells processed and packaged milk. In essence, BDFP channels milk from
rural areas into urban areas while channelling urban money into rural areas.
Operations
There are a few steps in BDFP‟s operation. Currently, BRAC Dairy has one processing
factory in Gazipur, Bangladesh, but it has 101 chilling stations in the western half of
Bangladesh. As of now, BRAC Dairy collects milk from mainly western divisions of
Bangladesh: Khulna, Dhaka, Rajshahi, and Rangpur. However, BDFP mostly sells its
products in the eastern divisions of Bangladesh: Chittagong, Dhaka and Sylhet.
First in the supply chain, independent dealers purchase milk from dairy farmers for a fair
price. These dealers travel to one of BDFP‟s 101 chilling stations to sell and preserve
their milk. BDFP purchases the milk from dealers for a higher price than other dairy
retailers, allowing the dealers to continue giving farmers a fair price for their milk.
Finally, it processes the milk at its factory in Gazipur, where it produces numerous dairy
products, e.g. pasteurized liquid milk, UHT liquid milk, low fat liquid milk, chocolate milk,
mango milk, full cream milk powder, low fat milk powder, sour and sweet curd, ghee,
butter etc. These activities increase the market stability for dairy farmers and provide
high quality products to consumers in urban areas. A more stable market allows BDFP
to continue buying milk from dairy farmers for a fair price.

15. In 2012, BDFP has launched with a new brand named 'Aarong Dairy' for its all dairy
based products. BDFP distributes its milk based product via an internal and external
distribution chain. For the external sales, dealers (100 plus) purchase Aarong dairy
products and sell them to various retailers. BDFP also has its own sale centres in 35
places, forming an internal retail chain.
Growth
When BDFP first started, it produced 140,000 litres of milk per day. As of now, it has the
processing capacity of 170,000 litres of milk per day engaging 1500 employees. Today,
BDFP holds 22 percent of the national market share. It is also one of the largest BRAC
enterprises, making profits of over BDT 220 million.
Synergies with other BRAC enterprises
One of BDFP‟s goals is to provide a very high quality product. To enhance the quality of
milk, BRAC started its artificial insemination enterprise. This enterprise helps to
conceive the highest quality dairy cows. Artificial insemination adds value to BDFP‟s
final product, which allows BDFP to maintain a good price for its products and create
greater surplus. Over time, BDFP has expanded to provide training to farmers on how to
rear healthy dairy cows, providing vaccinations, nutritious feed, and other technical
training. Very recently, BRAC Salt launched a new product called Minamix for cows.
This product enhances the health of cows, contributing to higher quality milk production.
Clients
BDFP has three main groups of clients: dairy farmers, consumers, employees and
institution providers. Currently this enterprise serves roughly 40,000 farmers in western
part of Bangladesh. Consumers of Aarong dairy products benefit from high quality,
hygienic dairy products which BDFP produces.
BDFP‟s 1500 workers benefit from employment from the enterprise. Most of BDFP‟s
employees are skilled workers. Highly skilled veterinarians monitor the health of dairy
farmers‟ cows. BDFP also trains its workers on hygiene testing and quality control
measures. They also employ workers to procure milk from chilling stations, factory
engineers, marketers, and day labourers
Over View
The beginning
In 1978, BRAC‟s flagship social enterprise, Aarong, was created as a support
mechanism to BRAC‟s existing sericulture programme so that the hand-spun silk they
were creating could be successfully marketed at a larger scale. Aarong was established
as a retail distribution outlet that offered a fair price to the rural suppliers while
introducing the products to urban markets where both demand and consumers‟

16. willingness to pay were the highest. Today, Aarong has transformed into a high surplus
generating enterprise, operating as one of the largest retailers in Bangladesh. Other
BRAC enterprises also came into existence at various times in similar efforts to create
economic space for the poor. Although most of the BRAC enterprises were formed as
programme support enterprises, majority of them currently operate as surplus
generating ventures while maintaining their ongoing commitment toward alleviation of
poverty via empowerment of the poor. Today BRAC operates 16 financially and socially
profitable enterprises, across health, agriculture, livestock, fisheries, education, green
energy and retail sectors, making significant contribution to local economy through
creation of market linkages, entrepreneurs and employment opportunities. By targeting
profitable and scalable businesses, BRAC enterprises are able to fullfill their social
missions at a much greater scale while increasing financial surplus that reduce the
organisation‟s donor dependency and support BRAC‟s development programmes and
other innovations at a greater level. That is why BRAC enterprises continue to exist,
expand and innovate through across multiple sectors.
The BRAC ethos of social entrepreneurship, the '3Ps': people, planet, profit
BRAC Enterprises strive to strike the right balance between financial surplus and social
returns in order to achieve the targeted double/triple bottom lines. By operating as a
surplus generating organisation that aims to alleviate poverty through its business
operations and supply chain, BRAC succeeds in implementing its vision to serve society
in a profitable manner.
Although all of the BRAC enterprises are committed toward achieving financial, social
and environmental returns, BRAC takes a unique approach in defining its triple bottom
line by focusing on three ideals: people, profit and the planet (the '3Ps'). A BRAC
enterprise must meet three criteria in order to be considered a successful and
sustainable business:
It must serve the needs of poor people
It must be environmentally friendly, and
It must make surplus to help keep BRAC‟s development works sustainable
Social enterprise – our objective
BRAC takes a holistic approach in conceptualising and developing each of its
enterprises. As BRAC enterprises have expanded from programme support
mechanisms to surplus generating enterprises with financial and social missions, each
enterprise has ensured that it complies the four fundamental objectives of a BRAC
enterprise:

17. Creating job opportunities
Generating surplus for BRAC in order to minimise donor dependency
Ensuring long-term support and contribution toward the sustainability of BRAC‟s
development interventions such as microfinance, education and skills development etc.
Becoming viable investments in the long run in order to act as „hedge‟ against future
liquidity, Advantages gained from social enterprises
through its unique model and integrated operations, BRAC achieves five distinctive
advantages across its enterprises:
Synergy
The integrated network of BRAC Enterprises, Development Programmes and
Investments together beget a unique synergy and essentially create a 2 2=5 Effect. The
surpluses generated by the social enterprises make BRAC more self-sustaining so that
increasing numbers of poor people can become self-reliant.
Cross collaboration
BRAC enterprises maximise synergy, impact and value by their targeted outreach and
integrative products and services across multiple enterprises.
Cross subsidy
Although BRAC enterprises aim for financial returns while fulfilling the social and
environmental missions, not all enterprises are equally profitable. The cumulative
surplus from BRAC enterprises combined are used to re-invest in the BRAC enterprises
and support the development programmes, on an as needed basis, not on a pro-rata
basis across enterprises.
Continuous innovation
BRAC‟s extensive network of enterprises with the capacity to address major social
needs allows BRAC to continually identify needs and create innovative solution to fulfil
that need and create necessary market linkages.
Holistic support
Because of its integrated network and unique model, BRAC has the advantage, ability
and capacity to provide holistic support and truly take care of its stakeholders, i.e. the
entrepreneurs involved with the BRAC enterprises.

18. Aarong milk
Aarong Milk was first marketed in 1998 by the dairy social enterprise of development
organization BRAC, to help po or rural dairy farmers protect and grow their dairy
enterprises and improve their family's income by facilitating ac ces s to urban markets. I
nspired by this purpose, Aarong Milk has worked to build a brand that is as true to its
urban consumers as it is to its rural suppliers, providing dairy products of impec cable
quality that drive its vision of a healthy and strong Bangladesh
Market
Aarong Milk is a well-known, highly respected and trusted brand among urban
Bangladeshis. This trust is based on Aarong Milk's meticulous attention to quality
control in all aspects of the production process. Consumers have come to rely on the
high quality and value of its products. Having entered Bangladesh's dairy market only
12 years ago, Aarong Milk has achieved enormous success with its biggest selling
product, liquid milk, capturing 32% market share - second only to a long-standing
national competitor. Aarong Milk is a market leader in other products: in flavored milk, it
captured 58% of the market in just 10 years while its curd product dominates nearly
70% of the curd market and ghee leads with a 34% market share.

19. Achievements
Aarong Milk offers a range of dairy products alongside liquid milk and competes with
wellestablished global brands in the Bangladeshi powdered milk market. Its greatest
achievement has been in winning the confidence of the consumers in a short period of
time. This is reflected in the rapid increase in market share - Aarong Milk gained 13%
market share during the last 4 years, from 19% in 2006 to 32% in 2010. The brand has
a dedicated consumer base of around 500,000 people who regularly purchase its
products. Aarong Milk is also playing a major role in the development of the country's
dairy industry infrastructure and technology, through its network of chilling centres
collecting milk from the remotest rural areas, the use of state-of-the-art processing
History 1999 Ghee and low-fat milk products launched 1998 Commercial operations
started with the launching of liquid milk product 2000 Flavored milk products introduced
in poly-pack 2001 Production of UHT milk started 2006 Production capacity of liquid
milk increased 2008 Branded powdered milk product introduced equipment and
research into and promotion of improved livestock breeding, rearing and caring
techniques. Aarong Milk is currently supporting over 40,000 farmers, helping develop
rural entrepreneurship through loans providing access to improved breeds through
BRAC's Artificial Insemination programme, high quality feed produced by BRAC's feed
enterprise and veterinary services through its extension networks.

20. Product
Aarong Milk offers a range of high-quality dairy products for the urban market. Essential
nutritional value products include liquid, UHT and powdered milk and butter. Products
targeted towards the health conscious are low-fat milk, curd and strawberry-flavored
yogurt drink. The strawberry drink is a unique Aarong Milk product not produced by any
other company in Bangladesh, as is Tamarind Juice, made using its own private recipe.
Alongside packaged juices, the chocolate and mango flavored milk products are for the
young and the young at heart and aim to make drinking milk fun. Products such as ghee
are primarily marketed as ingredients in festival-related food.
Recent developments
In 2008, Aarong Milk added a new product to its product line - Aarong Full Cream Milk
Powder, an essential addition to the milk market providing pure milk directly collected
from local cattle and processed using state-of-the-art technology. Bangladesh is
currently importing over 25 thousand metric tons of powdered milk to meet market
demand. Aarong Milk Powder aims to play a significant role in this regard, helping to
reduce import dependency in addition to encouraging more poor farmers to enter into
the dairy sector.
Promotion
The latest in Aarong Milk's promotional activities is the "Bolishtho Bangladesh Gorbo-i"
campaign. Inspired by the positive "can-do" attitude towards taking Bangladesh further
that is prevailing across all sectors, the campaign highlights Aarong Milk's commitment

21. towards creating a strong Bangladesh by producing the highest quality of pure milk that
will work to develop the physical and mental strength of Bangladeshis. The campaign is
being put forth across all standard promotional channels for Aarong Milk, including
billboards, TV, print media and POS displays. New channels being utilized by the
campaign include mobile billboards and radio.
Brand value
Aarong Milk is dedicated to delivering the highest quality dairy products to its
consumers and in reflection - the brand has become synonymous with quality and good
health in consumers' minds. Aarong Milk's commitment to build a healthy Bangladesh is
double-edged. It is focused on establishing the importance of milk as an integral part of
a healthy diet for its consumers. Aarong Milk is also committed to ensuring the health
and wellbeing of its rural suppliers and their families by improving their income through
provision of market access as well as encou
Where are works

22. AARONG MILK A Social Statement by itself
Sabina must have realised very early on during her childhood that her life
was going to be no walk in the park. Born unto a world of poverty, Sabina
hardly ever had a childhood to begin with.
Dropping out of school at Grade-7, she found herself married off at only 14
years of age. Two kids later, Sabina and her day-labourer husband
reached a point where they literally did not have enough money to survive.
As the closest milk collection point was far away from the community, it
was tough for the producers to sell their milk and get a fair price. Sabina
offered her help in this regard and since then, she has not looked back.
Sabina began with collecting and selling 10-15 litres of milk and has now
gone on to selling 45-50 litres of milk per day. Along with this, she has also
started a small cattle feed business to augment her income.

23. With a little help, Sabina climbed out of the unforgiving grip of poverty and
now she uses her income to meet day to day expenditures along with
planning a better future for her children.
Like Sabina, many others have benefitted from an industry that once faced
many challenges. Previously, the dairy industry suffered greatly from a lack
of established linkage between production, distribution and consumption.
Dairy farmers were not receiving fare prices and the breeds of cow in their
farms would produce low quantities of milk. Then in 1998, BRAC Dairy was
established to help dairy farmers overcome these problems.
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What started as a social business soon became a brand, Aarong Dairy, to
be reckoned with, one which soon gained the trust and respect that few
business manage to gather. However, Aarong Dairy's reputation wasn't
based just on the quality of their product but also the story present in every
packet. For buying Aarong Dairy is akin to directly supporting a community,
which is in need of our support. Aarong Dairy then, is a social statement all
by itself.

24. During its infancy, Aarong Dairy found that though there were plenty of
locals involved in the milk trade, they could not find a permanent market. In
fact, at times they found that there was hardly any demand or the demand
was too erratic to be profitable for them. Low quantities of milk produced by
their cows also meant that milk production was an expensive process. Poor
breeding, limited veterinary services and shortages in cow feed were some
of the other challenges face by dairy farmers.
Aarong Dairy identified the problems in the sectors and then began to find
ways to rectify them. The first order of business was to establish both
forward and backward linkages in terms of milk production.
In fact, although Aarong Dairy itself was established in 1998, its origins can
be traced much further back, in the early 1980's, when the BRAC micro
finance program aimed to provide funds for ultra-poor farmers to procure
cows and invest in cows. Subsequently, BRAC's artificial insemination
program also came into play, and successfully helped farmers rear breeds
of cows that significantly increased their milk yields.

25. Having helped increase production of milk, BRAC now needed to ensure
market access for its farmers at a fair price. This is where Aarong Dairy fits
in.
The organisation began buying the milk that the farmers could produce at
very competitive prices. Because of Aarong Dairy's presence, the local
farmers could finally have guaranteed payments based on their individual
level and quality of production. This was a huge incentive.
Aarong Dairy thus removed the major headaches for the farmers such as
where to store to the milk and how to transport the milk. Aarong Dairy has
gone on to set up 101 chilling plants, with 10 plants set up in the Northern
region, where milk production is low due to unfavourable climactic
conditions. However, Aarong Dairy had no plans to leave any farmer
behind, so the Northern region was included despite the problems.
Furthermore, it was not just the milk producers who benefitted. As Sabina's
story shows, milk collectors were even benefitted and so were those who
were involved in the production of cattle feed.

26. Along with milk producers, peripheral industries and ancillary services also
were advantaged greatly. Entire villages could be seen transforming,
freeing themselves from the shackles of poverty.
However, bringing in milk from all corners of the country, did throw up a
dilemma of its own. Milk from each region is unique in its qualities and even
taste. To ensure uniformity in all their milk products, Aarong Dairy instituted
a three-step test. These tests help to establish the homogeneity of the
products, so all the products are the same. The powder milk that Aarong
Milk produces is also entirely locally sourced.
Currently, Aarong Dairy has 101 collection and chilling stations located in
25 districts, including 10 located in ultra-poor areas. The enterprise collects
102,559 litres milk daily and serves 50,000 farmers, 64 percent being
women. More than 2 packets of Aarong milk are produced every 2
seconds.
Aarong Dairy, has come quite far in a short span of time given their
ambitions. They have carved a niche for themselves not only for
consumers but also for the producers. In fact, Aarong Dairy is a social
enterprise. The primary objective is not necessarily to become a market
leader, but help create market access for our dairy farmers, and ensure a
fair price for them.
Nothing in terms of quality or even ethics is compromised. Aarong Dairy
isn't just a product; it's a social statement or rather a powerful business
statement that helped not only to preserve but also revitalise an entire
industry.
Next time you purchase a packet of Aarong Milk, remember that you are
not only purchasing something with nutritional value but rather you are
directly responsible for preserving and ensuring the very livelihood of over
50,000 farmers.

28. Marketing Mix – The 4 p’s of marketing
The Marketing mix is a set of four decisions which needs to be taken before launching
any new product. These variables are also known as the 4 P‟s of marketing. These four
variables help the firm in making strategic decisions necessary for the smooth running
of any product / organization. These variables are
Product
Price
Place
Promotions
The Marketing mix of Nestle discusses the 4P‟s of one of the strong FMCG companies
of the world. The Nestle marketing mix shows Nestle has a strong product line which
boosts its marketing mix. Below are the products, price, placement and promotions of
Nestle.

29. Products:
Milk and Milk products – Nestle every day, Nestle slim and Nestle Milk maid are some
of the milk and milk based products from the house of Nestle. Nestle powder milk is
Nido, Nido is Powder milk, NIDO® FORTIFICADA is dry whole milk with added vitamins
and minerals to help support healthy growth and development. Every 8 fl oz glass of
NIDO® FORTIFICADA milk has:
20% of the Daily Value* of Vitamin C
30% of the Daily Value* of Iron
30% of the Daily Value* of Calcium
*% Daily Values based on children less than 4 years old. NIDO® FORTIFICADA is not
suitable for children under 1 year of age.

30. Price: Nido have various size and price of powder milk
Placement – Nestle follows the FMCG strategy of distribution which involves breaking
the bulk. The typical distribution strategy of Nestle is as follows.
Manufacturing >> C & F agent >> Distributors >> Retailers >> Consumer
Manufacturing >> Bulk buyers >> Consumer
These are the two different forms of distribution which Nestle has. It is typical of any
FMCG company. However, the Nestle channel is known to be strong with a good
marketing and sales network for channel distribution.
On top of it, Nestle regularly introduces trade discounts and various tactics to keep the
channel motivated. The major challenge is in the distribution of Maggi which is the most
in-demand product along with Nescafe. Due to these two products, Nestle is able to

31. drive other products in the market as well. Thus, on purchase of one weak product, the
distributor might get a discount on the stronger product or vice versa.
The challenge for Nestle is in the chocolate segment where it faces stiff competition
from Cadbury and hence selling the chocolates becomes difficult. Kitkat might have its
own brand positioning, but it is not better than Dairy milk. Thus, converting retailers to
sell Nestle instead of Cadbury is the toughest task for Nestle. This is converted mainly
through promotions.
Promotions
Communication and Promotion Dhaka (%
)
Narayangong(%
)
Communication media she
uses frequently
Television 48.0 52.0
Radio 22.0 24.0
Newspaper 30.0 24.0
Magazine 48.0 52.0
Where she has watched a
NIDO Advertisement
Television 54.0 50.0
Newspape
r
24.0 24.0
Magazine 22.0 26.0
This is another vital part for the marketers. These sections were to find out the
communication channels they are using. In this regard also, we have found that
mothers from both the localities rely upon television more than any other medias. As a
result, the marketers should communicate through this channel, as it will cover most
people.
NIDO is reliable and will always find ways to satisfy the nutritional needs of growing
children. It has been in the family for generations and has always symbolized the
guarantee of constant premium quality.
Most of the Consumers from both the locality told that they have chosen this particular
brand as they think that this is the best FCMP in the market. A handsome portion of
the consumers from Dhaka told that they have chosen this brand as their kids like

32. other brand of milk powder. But the consumers from Narayangong said that they have
chosen this brand as it has the highest quality and they are also able to afford the
price of it.
Nido faces direct competition with the ordinary milk and milk based beverages like
Complan, Bournvita and the like. NIDO takes the differentiation from other milk
brands by essential nutrients that growing children needs (comparison with nutrients
of Complan).
Marketing Strategy for NIDO is good for different segments of marketing areas mainly
due to price stability, aggressive media and non-media activities.
NIDO is trying to grab the full cream powder market of Bangladesh in both cities and
rural areas.
In case of the knowledge about various things of full cream milk powder, the
consumers from Dhaka were more knowledgeable than the Narayangong consumers
as they were a bit more correct in picking up the right answers.
Sometimes Nestle create artificial shortage of supply of NIDO to increase the price
of milk for that customers sometimes deprive NIDO and switch to others brand which
results fall down their market position.
Trade Promotions
An annual Trade contest has been held for the last two years running in the form of a
Display Contest. The contest is very simple. Retailers are given points based on product
purchase, shelf display, POP advertisement maintenance and additional creativity in
display. The program obviously runs for a specific duration of time, usually 2 months. At
the end of the promotion period, retailers with most number of points within their
stipulated territory are given cash prizes.
Push Money
During this trade promotion, cash discounts are given to traders when they purchase a
specified minimum number of products within a given time. In the case of NIDO,
discounts are given when traders purchase certain number of cartoons of NIDO. (Ex: a
carton of NIDO 350g contains 24 packs).
Complementary Gifts
In order to build better relationships with the trader‟s gift items such NIDO branded
clocks, caps and t-shirts, bags etc. are given out.
Consumer Promotions
The specific objectives of consumer promotions for NIDO include increasing short-
term sales, creating hype among consumers and build brand equity through
association of brand positioning and promotion theme. In the case of NIDO, usually
premium based consumer promotions have been used. In 2005, only one consumer

33. promotion was run with title “Growth Kit”. The concept of this CP was very simple.
Consumer got a free Growth Kit set, which included a height sticker, NIDO mug and
nutritional booklet for mothers with purchase of one NIDO 350g pack. The promotion
also helped build NIDO associations with the concept “growth of children” because the
gifts were directly related with the concept. Similarly, in the previous year similar
consumer promotion was run with free gifts of “Stationery set for children” and “Faber
castle crayon set” for children.
Sales Promotion
Sales promotion, offers and extra incentive for the ultimate consumer, distributors, or
the sales force.Here we are only concerned with consumer-oriented sales promotion.
Sales promotional techniques used by nestle Pvt. Ltd.
Event Marketing & Sponsorships
From time to time, NIDO does engage in event marketing and sponsorships.
However, they do have to be related to the brand‟s positioning and targets
consumers. For example, in 2006 NIDO sponsored a children‟s art exhibition,
science fair for young children in schools. NIDO also co-organizes an annual story
writing competition for children with the title “NIDO Shaptahik 2000-Golpo Lekho
Golpo Jeto”. This competition is conducted through out the country in almost 10,000
schools.
Publicity
NIDO organizes nutrition based educational programs in schools for mothers with the
aim of providing information and knowledge to mothers on how best to take care of
the nutritional needs of children and what role milk plays in respect of their nutritional
needs. The programs titled, “NIDO Growth Program” was conducted in over 150
schools last year and will be conducted in more schools this ye
Consumer Confidence
The Consumer Confidence department is the scientific heart of the Nestlé
Quality System. Consumer confidence and trust has been fundamental to Nestlé‟s
success for over 135 years. Our wide range of expertise is made available to R&D
scientists, operational and technical units and businesses. We cover five main areas.
 Consumer safety that guarantees the delivery of safe products.
 Product compliance that combines all aspects related to the legal compliance of
Nestlé products.
 Consistent quality that involves all measures for the delivery of Nestlé products
with a consistent level of quality.

34.  Consumer preference that ensures our products demonstrates superior
organoleptic and nutritional quality.
 Occupational and environmental safety that combines all aspects related to the
safety of workers and the environment
Safety evaluation requires extensive scientific skills in the two areas of food safety:
analytical method development and science-based risk assessment. Ingredients also
need to be analyzed for authenticity and allergens. Leading edge packaging
expertise also has a role to play in ensuring both quality and safety of Nestlé food
products.
Anticipation of food safety issues is guaranteed through a systematic screening of
scientific and technical literature and evaluation by our network of experts for case-
adapted responses.
Market Position of NIDO (Dhaka)
One of the prime targets of this research was to find out the NIDO information. As the
market is so much competitive and some of the companies are so much
concentrated about Niche marketing, they always need to know who are their
customers, what they are wanting from a particular brand, what are their likings and
disliking etc. This is truer in case of NIDO as it is always focused on the demands of
its consumers. So at the beginning of the survey, I wanted some of the NIDO
information such as their occupation, age, education level, gross family income etc.

35. Marketing Mix of Aarong:
Product: Aarong Milk offers a range of high-quality dairy products for the urban market.
Essential nutritional value products include liquid, UHT and powdered milk and butter.
Products targeted towards the health conscious are low-fat milk, curd and strawberry-
flavored yogurt drink. The strawberry drink is a unique Aarong Milk product not
produced by any other company in Bangladesh, as is Tamarind Juice, made using its
own private recipe. Alongside packaged juices, the chocolate and mango flavored milk
products are for the young and the young at heart and aim to make drinking milk fun.
Products such as ghee are primarily marketed as ingredients in festival-related food.

36. Price: Aarong have various size and price of powder milk
AARONG DAIRY L F MILK POWDER BIB 350GM Tk.275.00
Place: Selling place of Aarong powder milk in Bangladesh local market, supper shop,
Promotion: the current market situation, position, segmentation, SWOT analysis and
marketing mix is described here along with the history and background of Aarong dairy
company. I have analyzed the customer behaviour and current market situation of
Aarong dairy by using secondary data as there was limitation to gather primary data
because of the current political turmoil.
Introduction
BRAC‟s microfinance program used to enable farmers to buy land and cows in order to
produce milk. While BRAC helped these farmers to generate income through micro
financing, dairy farmers still did not have consistent access to the market. The demand
of milk in a single village was not enough to generate a hefty profit. A lot of milk wasted
because dairy farmers did not have enough demand to sell their milk and no proper
refrigeration to store the unsold milk. Sir Fazle Hasan Abed, founder of BRAC, noticed
this problem and proposed establishing a milk factory to collect milk from local farmers
for a fair price. As a result, BRAC initiated BRAC Dairy & Food Project (BDFP, also
known as Aarong dairy) in 1998 to serve as a market for dairy farmers throughout rural
Bangladesh. Today, Aarong Dairy not only secures fair prices for its rural entrepreneurs,
but has also expanded to offer cattle development and technical training, vaccinations
and feed cultivation facilities. Aarong Dairy collects milk from 100 collection and chilling
stations located across the country including 10 that are located in ultra-poor
areas. Aarong Dairy is currently the only dairy company in Bangladesh to have
received ISO 22000 Certification, setting an example of vigilance at every stage of dairy
production,
Operations
There are a few steps in BDFP‟s operation. Currently, BRAC Dairy has one processing
factory in Gazipur, Bangladesh, but it has 101 chilling stations in the western half of
Bangladesh. As of now, BRAC Dairy collects milk from mainly western divisions of
Bangladesh: Khulna, Dhaka, Rajshahi, and Rangpur. However, BDFP mostly sells its
products in the eastern divisions of Bangladesh: Chittagong, Dhaka and Sylhet.

37. First in the supply chain, independent dealers purchase milk from dairy farmers for a fair
price. These dealers travel to one of BDFP‟s 101 chilling stations to sell and preserve
their milk. BDFP purchases the milk from dealers for a higher price than other dairy
retailers, allowing the dealers to continue giving farmers a fair price for their milk.
Finally, it processes the milk at its factory in Gazipur, where it produces numerous dairy
products, e.g. pasteurized liquid milk, UHT liquid milk, low fat liquid milk, chocolate milk,
mango milk, full cream milk powder, low fat milk powder, sour and sweet curd, ghee,
butter etc. These activities increase the market stability for dairy farmers and provide
high quality products to consumers in urban areas. A more stable market allows BDFP
to continue buying milk from dairy farmers for a fair price.
In 2012, BDFP has launched with a new brand named 'Aarong Dairy' for its all dairy
based products. BDFP distributes its milk based product via an internal and external
distribution chain. For the external sales, dealers (100 plus) purchase Aarong dairy
products and sell them to various retailers. BDFP also has its own sale centres in 35
places, forming an internal retail chain.
Growth
When BDFP first started, it produced 140,000 litres of milk per day. As of now, it has the
processing capacity of 170,000 litres of milk per day engaging 1500 employees. Today,
BDFP holds 22 percent of the national market share. It is also one of the largest BRAC
enterprises, making profits of over BDT 220 million.
Synergies with other BRAC enterprises
One of BDFP‟s goals is to provide a very high quality product. To enhance the quality of
milk, BRAC started its artificial insemination enterprise. This enterprise helps to
conceive the highest quality dairy cows. Artificial insemination adds value to BDFP‟s
final product, which allows BDFP to maintain a good price for its products and create
greater surplus. Over time, BDFP has expanded to provide training to farmers on how to
rear healthy dairy cows, providing vaccinations, nutritious feed, and other technical
training. Very recently, BRAC Salt launched a new product called Minamix for cows.
This product enhances the health of cows, contributing to higher quality milk production.

38. Clients
BDFP has three main groups of clients: dairy farmers, consumers, employees and
institution providers. Currently this enterprise serves roughly 40,000 farmers in western
part of Bangladesh. Consumers of Aarong dairy products benefit from high quality,
hygienic dairy products which BDFP produces.
BDFP‟s 1500 workers benefit from employment from the enterprise. Most of BDFP‟s
employees are skilled workers. Highly skilled veterinarians monitor the health of dairy
farmers‟ cows. BDFP also trains its workers on hygiene testing and quality control
measures. They also employ workers to procure milk from chilling stations, factory
engineers, marketers, and day labourers.
Thanks Sir