Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Nestle Nespresso Bus 400


Published on

Project presentation for Market Readiness of Nespresso

Nestle Nespresso Bus 400

  1. 1. “Welcome to the Internship project Presentation”<br />“Nespresso and it’s Market Readiness in Bangladesh”<br />
  2. 2. Presented by<br />Md. TanveerRahman<br />ID# 07104024<br />December 2010<br />2<br />
  3. 3. Company Overview<br /><ul><li>Nestle founded by Henri Nestlé in Switzerland in 1866.
  4. 4. Head Quarter Situated Vevey, Switzerland
  5. 5. The world's biggest food and beverage company.</li></ul> Product include: <br /> coffee and other beverages <br /> dairy products<br /> infant foods and clinical nutrition <br /> Culinary food<br /> chocolate and confectionery. <br />December 2010<br />3<br />
  6. 6. Nestle Bangladesh Ltd.<br /><ul><li>Started Its first commercial production in Bangladesh in 1994.
  7. 7. In 1998 Nestlé S.A. took over the remaining 40% share from Nestlé’s local partner when Nestlé Bangladesh became a fully owned subsidiary of Nestlé S.A
  8. 8. Current Managing Director is Mr. Laurent Thernod.
  9. 9. Factory is situated at Sreepur, which is 55 km north of Dhaka.
  10. 10. Product offered in Bangladesh:</li></ul> Local Manufacturing: infant formula and follow up formula <br /> CERELAC, Nestum, <br /> NIDO, Maggi Noodles, Maggi Soup, Nescafe 3 in 1.<br /> Imported: LACTOGEN, NAN, Coffee Mate, Corn Flakes, koko Crunch, Fox Candy<br />October 2010<br />4<br />
  11. 11. Products of Nestle Bangladesh<br />October 2010<br />5<br />
  12. 12. MAGGI Noodles & Soup<br /> Market Share: 58.7% (noodles) & 100% (soup)<br /> Variants: 2 minute noodles, Family Noodles, Thai, Corn & Vegetable Soup<br />Breakfast Cereals<br /><ul><li>Variants: Nestlé Corn Flakes & </li></ul>KOKO Krunch<br />January 2010<br />6<br />
  13. 13. Nespresso <br /><ul><li>One of the fastest growing operating units of the Nestlé Group
  14. 14. It is a strategic business in its own right with overall responsibility for its own research and development.</li></li></ul><li>Nespresso Vision<br />“To be preferred and respected as the leading quantity coffee company for portioned coffee and become the icon for perfect coffee worldwide.”<br />
  15. 15. Timeline and History<br /><ul><li>In 1970s Nestlé anticipated the growth of the gourmet coffee market and was inspired by espresso inventor LuiggiBezzera’s original concept.
  16. 16. The principle was straightforward: to offer the quality of espresso made in the best Italian coffee bars directly in homes and work places
  17. 17. The project was completed in the mid 1980’s and the 'Nespresso system' was launched.</li></li></ul><li>History<br />
  18. 18. Nespresso Concept<br />
  19. 19. Machine<br /><ul><li>Nespresso has partnered with Eugster company for manufacture the Machine.
  20. 20. Combine technological technology, simplicity of use and innovativedesign.
  21. 21. Different ranges of machines available in differentcolors and able to deliver a sufficient pressure to make a true espresso.
  22. 22. High Profile, Low profile.
  23. 23. Home user , Professional.
  24. 24. 33 different machine models</li></li></ul><li>Nespresso Machine<br />
  25. 25. Nespresso Machines<br />
  26. 26. Coffee and Coffee Capsule<br /><ul><li>Nespresso system is a closed system.
  27. 27. preserve all the aromas of thecoffee and are available in a wide range of flavours (16 different flavours).
  28. 28. They offer nine varieties of espresso coffee including: Ristretto; Arpeggio; Roma; Capriccio; Livanto; Cosi; Volluto; DecaffeinatoIntenso and Decaffeinato
  29. 29. Each single-portion capsule is individually sealed, and the coffee’s freshness is maintained for six months. </li></li></ul><li>
  30. 30. Nespresso Club<br /><ul><li>Consumers' automatically become Club members following registration triggered by first purchase of capsules.
  31. 31. Nespresso members can purchase the capsules 24/7 through online and telephone, fax or direct mail order or in some countries through Nespresso boutiques.</li></li></ul><li>
  32. 32. Nespresso Business Around the World<br />
  33. 33. Nespresso in Bangladesh<br />“An opportunity for Creating Domestic Espresso Coffee Culture in Bangladesh?”<br /> <br />
  34. 34. Overview of Coffee industry in Bangladesh<br /><ul><li>Coffee drinking culture is not that amount popular.
  35. 35. For Weather reason and Price.
  36. 36. Tea is dominating as a major key player in the hot beverage drink market.
  37. 37. There are two types of Coffee Available in Bangladesh:</li></ul> 1. Instant Coffee<br /> 2. premium Coffee in Coffee Shops.<br />
  38. 38. Instant Coffee:<br /><ul><li>Very popular in Bangladesh
  39. 39. Nescafe brand is dominating the current market.
  40. 40. Poor Substitute Compare to Premium Coffee.
  41. 41. Available instant Coffees:</li></ul>Nescafe brand: Classic, 3in 1, Sunrise Extra. <br />
  42. 42. Coffee Consumption<br />Situation Analysis:<br />Consumer Segments:<br /><ul><li>Youth of 16 –24 years
  43. 43. Executives between 25-35 years
  44. 44. Highly influenced by changing trends & fashion.,image conscious.
  45. 45. Attracted to messages that they can relate to Coffee drinking Culture as a part of their refreshment.</li></li></ul><li>Key Consumer Trends:<br />Exposed to wide range of media<br />Image builders/trend setters<br />Price conscious<br />Health conscious<br />Enjoys company but knows value of ‘time to self’<br />
  46. 46. PATTERN OF CONSUMPTION:<br />1. Coffee Drinker<br /> 2. Coffee Lapsers<br /> 3. Coffee Fliter<br />Coffee Drinkers:<br />
  47. 47. COFFEE LAPSERS<br />
  48. 48. COFFEE FLIRTERS<br />
  49. 49. Reasons for having Coffee:<br />
  50. 50. Premium Coffee Market Current Situation Analysis<br /><ul><li>Generally refers to people who drinks premium roast and ground coffee, espresso and milk based espresso drinks.
  51. 51. Example, espresso, cappuccino, latte, expensive roast and ground such as blue mountain, java, and organic coffee.
  52. 52. Premium Coffee technology is complicated and expensive.
  53. 53. Available in Coffee Shop
  54. 54. Growing up several Coffee Shops in Dhaka City and other major divisional city now people are enthusiastic about taking the taste of Espresso Coffee. </li></li></ul><li>Major Coffee Shops <br /><ul><li>Presently there are many coffee Shops active in Bangladesh. Majority of them operation based on Dhaka city.
  55. 55. Some of the famous names are Coffee World, Cafe Mango, Cofi -11, Barista, kozmo.
  56. 56. Coffee World:</li></ul> Coffee World is a premium specialty coffee house that offers a comprehensive range of hot and iced coffees with fresh complementary foods <br /><ul><li>The company places a lot of emphasis on picking and roasting the finest Arabica beans to create rich brews prepared by highly trained baristas (professional coffee makers). </li></li></ul><li><ul><li>Today Coffee World has over 100 stores in 7 countries.
  57. 57. Coffee World has 26 different types of coffee.
  58. 58. Different sizes, Presto (8 oz.), Pro (12 oz.) and Alto (16 oz), and are quite fairly priced, ranging between Tk.65 Tk.150.
  59. 59. Coffee Mango</li></ul>Offering freshly brewed Arabica coffee .<br /> Price range within the limits being priced between Tk.50 Tk.90<br />KOZMO<br /> coffee is one of the most popular items. Regular coffee, filtered from baked coffee beans<br />
  60. 60. CoFi 11<br /> Their coffee beans are imported from all over the world.<br /> They have Starbucks beans from USA; also have coffee beans from India and Brazil. The machines are directly bought from Starbucks.<br />Barista:<br /> Barista was brought to Bangladesh by MGH Restaurants Private Limited in 2009.<br />The coffee is what it's all about, and it is excellent - only the best Arabica beans, roasted to perfection.<br />
  61. 61. Coffee Machine Availability in Bangladesh:<br /><ul><li>Espresso Coffee machine for home user is not that amount available.
  62. 62. Filter based Coffee Machine available.
  63. 63. Some famous branded company also sell coffee machine
  64. 64. TC91100- Porsche thermo coffee machine from SIEMENCE home Application
  65. 65. Commercial Vending Machine.</li></li></ul><li>Marketing Readiness strategy of Nestle Bangladesh Ltd<br /><ul><li>Internal and external factors.
  66. 66. people, product and brand oriented than system oriented.
  67. 67. 3 key elements:</li></ul> Feasible Consumer<br /> Perfect Quality<br /> Fair Competition<br /><ul><li>Market segmentation</li></ul>Demographic (age, income, etc.)<br />Consumption pattern.<br />Social economic factors.<br />Brand loyalty patters<br />Cultural factors.<br />
  68. 68. Target market<br /><ul><li>main focus is the socio-economic class, which is the company wide target.
  69. 69. Income level, Education, Quality realization
  70. 70. Market opportunity For Nespresso:
  71. 71. Product Position: Question mark product.
  72. 72. Demographic Situation: Mainly from Upper class and Elite class income segment if we are considering about regular Espresso Coffee consumption.</li></li></ul><li>Target Market :<br /><ul><li>Nespresso System price is very expensive.
  73. 73. Emphasized for those who are enthusiastic about premium coffee segment and Brand loyal.
  74. 74. Espresso coffee consumer are huge variety of crowd, which can be truly described as a mixture of youth, corporate, diplomatic and family.
  75. 75. Upper class income segment people.
  76. 76. Different Corporate offices.
  77. 77. Major Coffee Shops.
  78. 78. Hotel and Conference Center.</li></li></ul><li>SWOT Analysis<br />
  79. 79. Nestle Bangladesh Ltd. viewpoint about introducing Nespresso:<br /><ul><li>No planning of introduce “Nespresso” system in Bangladesh in nearer future.
  80. 80. Cost
  81. 81. Target consumer
  82. 82. Technology.</li></li></ul><li>Recommendations<br /><ul><li>Differentiation :</li></ul>Creating exclusive brand segment compare to other Coffee related products.<br />Create channel of consumer who are exclusive and within sophisticated premium coffee segment. <br /> Club Concept privilege.<br /> Communication according to target media: Web advertisement.<br /> Brand loyal and prestigious image.<br />
  83. 83. Conclusion<br /><ul><li>In Bangladesh Context Nespresso System till now not ready for introduce.
  84. 84. It takes time to adopt the situation because Espresso Coffee machine systems are very expensive product.
  85. 85. In upcoming Future if the situation of Coffee market drastically improved then Nestle Bangladesh Ltd. can think about introducing Nespresso System in Bangladesh.</li></li></ul><li>THANK YOU<br />