CHAPTER 1 INTRODUCTION

1.1. BACKGROUND OF THE STUDY: Nestl Bangladesh Limited is a leading Food company with lots of global strategic brands operating in Bangladesh. MAGGI is one of the strategic brands of Nestl Bangladesh Limited. Worldwide MAGGI brand is used for Nestl's Soup, Noodles, Seasonings, Recipe Mixes and Sauces. Image Proposed MAGGI Ketchup

In Bangladesh, MAGGI brand has two product categories under this strategic brand name: Noodles and Soups. As part of the brand extension and value creation objective of the company, Nestl now is going to launch MAGGI Ketchup in Bangladeshi market. Ketchup and Sauce business of Nestle under the brand name MAGGI is very much profitable and successful in other countries specially South Asian regions like in Nestle India (10,000 tons per annum) and Nestle Malaysia (12,000 Tons per annum). In most of the countries, where MAGGI has launched its ketchup range, it has become the market leader in this category.

Following this heritage and business excellence in ketchup business, Nestl Bangladesh is also interested to explore the business in local market. Moreover, in Bangladesh, there's a huge market for Ketchup and sauces. A very good number of players including some very strong local players are operating successfully in this market. Now Nestle would like to launch in this segment marketing and making plan. a five years

1.2. OBJECTIVE OF THE STUDY:

1.2.1. Broad Objective To plan of launching MAGGI Ketchup in Bangladesh to grasp a major portion of market share.

1.2.2. Specific Objectives:

To see the market situation and have an overview of the ketchup industry To analysis opportunity and issue To set the objectives To set marketing strategy To set financial projection and implementation controls.

1.3 SCOPE:

Our particular report all most covers the marketing plan on MAGGI Ketchup in Bangladesh for the next five years. It shows the feasibility of launching of our product.

1.4 LIMITATIONS: We are lucky enough to get a chance to prepare a report on marketing Plan for introducing in MAGGI Ketchup in Bangladesh We tried heart & soul to prepare a well-informed report. In spite of trying our level best, there may be some lacks in the paper. Those lacking are following:

In the month of June, all organizations remain busy. So, the employees were too busy to answer our queries.

It was too short time to make a overall marketing plan in only 2 weeks. We also faced a destruction of all our documents for wastage of the hard disk of our computer. In spite of our massive problem, we at last have tried to make it fulfilled. We beg your pardon for our unintentional delay.

1.5. METHODOLOGY: Methodology consists of step by step, organized and systematic fashion to complete the entire research. It should be such that effective and efficient result should be adopted. The main objective of this report is to plan the marketing activities and its feasibility and analyzing its effectiveness. The primary information and some secondary information about the competitors were collected from Internet.

CHAPTER-2 ORGANIZATIONAL OVERVIEW

2.1. COMPANY BACKGROUND: Nestle is the worlds largest food company involved in nearly every field of nutrition, with a turnover of 88 billion Swiss Francs. It is largest not only in terms of its sales but also in terms of its product range and its geographical presence. Its field of nutrition includes infant formula, milk products, chocolate and confectionery, instant coffee, ice-cream, culinary products, frozen ready-made meals, mineral water etc. Nestle is also major producer of pet food. In most of these product groups and in most markets, Nestle is the leader or at least a strong number two. Nestle is focused company with more than 94 percent of the sales coming from the food and beverage sector. Nestle is present around the globe, on all continents, with around 230,000 people working in more than 84 countries with 468 factories and with sales representatives in at least another 70 countries. Most popular brands of Nestle are Nescafe, Nido, Maggi, Polo, Smarties, Milo, Perrier, Friskies, Kit Kat, and Crunch. Some of their products have broken records: 3,000 cups of Nescafe are consumed every second, and Kit Kat merited an entry in the Guinness Book of World Records as the worlds best selling chocolate bar, with 418 Kit Kat fingers eaten every second around the world.

2.2. HISTORICAL BACKGROUND: Nestl is an international company with its headquarters in Vevey, Switzerland. In 1867 Henri Nestl, a chemist from Frankfurt who had settled in Vevey, became interested in infant

feeding. To satisfy a clear need, he developed and produced a milk-based food for babies whose mothers could not nurse them. The new product soon became well- known worldwide under the name of Farine Lactee Nestl (Nestl Milk Food). In order to expand into a broader product category and meet more peoples needs, the Nestl Companys first diversification occurred in 1905 when it merged with the Anglo- Swiss Condensed Milk Company (est.1866). Today, processing milk food is still the companys chief activity together with the other products of Nestl family such as chocolates, instant milk-based drinks, culinary products, frozen foods, ice cream, dairy products and infant foods.

Nestl is still primarily concerned with the field of nutrition, but it has also acquired interests in pharmaceuticals and cosmetics industries.As a result of the companys initiative and bold activity, it has grown into a large organization, employing almost 230,000 people in nearly 500 factories worldwide. Nestl products are now widely distributed on all continents and sold in more than 100 countries.

2.3 NESTL IN BANGLADESH: Nestle Bangladesh Limited started its first commercial production in Bangladesh in 1994. In 1998, Nestle S.A. took over the remaining 40% share from the local partner and Nestle Bangladesh became a fully owned subsidiary of Nestle S.A. Nestle Bangladeshs vision is to be recognized as the most successful food and drink company in Bangladesh, by generating sustainable, profitable growth and continuously improving results to the benefit of shareholders and employees. The world-class factory is situated at Sripur, 55 km north of Dhaka. The factory produces instant noodles, cereals and repacks milks, soups, beverages and infant nutrition products.

2.4. HISTORY OF NESTL BANGLADESH LIMITED:

Popular Nestl brands entered this part of the sub-continent during British rule and the trend continued during the pre-independence days of Bangladesh. After independence in 1971, Nestl World Trade Corporation, the trading wing of Nestl S.A., sent regular dispatches of

Nestl brands to Bangladesh through an array of indentures and agents, and some of the brands such as Nespray, Cerelac, Lactogen, and Blue Cross etc. became household names. In the early eighties Transcom Ltd. was appointed the sole agent of Nestl products in Bangladesh. In 1992 Nestl S.A. and Transcom Ltd. acquired the entire share capital of Vita Rich Foods Ltd. Nestl S. A. took 60 percent while Transcom Ltd. acquired 40 percent. The name of the company was also changed at this time to Nestl Bangladesh Limited. In 1998 Nestl S.A. took over the remaining 40 percent share from Transcom Limited.Today Nestl Bangladesh Ltd. is a strongly positioned organization. We will continue to grow through our policy of constant innovation and renovation, concentrating on our core competencies, with the aim of providing the best quality food to the people of Bangladesh.

REPORT BODY CHAPTER-3 SITUATIONAL ANALYSIS

3.1 CURRENT MARKET SITUATION

MAGGI finds 46 brands of Tomato ketchup are currently available in Bangladesh ketchup market. Among the brands, 34% are selling Ketchup, are also selling the Chili variant along with Tomato ketchup. The total volume of the sauce 68% volume comes from Tomato Ketchup & the remaining 32% comes from chili. Brands with the highest penetration nationally are the local brands Pran & Ahmed, mostly used for in home consumption by the middle-income household Vs Best & Druk are used mostly for foodservice and by the higher income household. Analysts predict that the ketchup market in Bangladesh have a great potentiality to growing fast. It is assumed the next five years ketchup market in Bangladesh will be increased more than 25% percent. So, there have a great potentiality to make a good profit. For this great potentiality to margin profit, comprehensive competitive pressure has been increased in the market. The estimated volume of the ketchup market is 1100 ton, with 25% growth expected within 5 years the total market size will be BDT 1.7 billion. To gain market share in this environment, MAGGI Ketchup must carefully target specific market segments.

3.2 MARKET DESCRIPTION: Our product will hold the position in the market because we are providing high quality with better tastier ketchup for the customers who are willing to money on the best. We posses good information about the market and serves the best quality with reasonable pricing. Unlike the mainstream products, we will not serve lower quality for maintaining lower cost.

3.2.1 Target Market: MAGGI Ketchup market consists of middle and upper-income household as well as foodservice sector for example; restaurant.

T arget Mark et
30% 70% Families Resturant

3.2.2 Target Market Forecast: Potential Customers Families Restaurants Total Growth 25% 15% 24.5% 2012 25000 1500 26500 2013 31250 1725 32975 2013 39062 1983 41045 2014 48828 2281 51109 2015 61035 2625 63660

3.2.3 Market Demographics:

The profile for MAGGI Ketchup customers consist of the following geographic, demographic, and behavior factors. Please note that MAGGI Ketchup has two target segment customers, Families consumers and restaurants.

Families: Geographic:

The immediate target is the city of Bangladesh. Middle-income and upper-income household.

Demographics:

Singles and families. Mostly females and children. Have a household income of more than 10,000 tk per month. Consuming per year at least 3 ketchup bottles. Conscious consumer about their health.

Behavior Factors:

Paying a premium for higher quality, tastier ketchup. Health consciousness

Restaurants (and their customers): Geographic:

Fast food and restaurants in the cities of Bangladesh.

Demographics:

Male and female. Single and families. Tend to patronize higher-quality restaurants.

Behavior factors:

Health consciousness High-quality meal.

3.2.4 Market Needs: MAGGI Ketchup provides individuals, families and restaurants with high-quality tomato and chili ketchup. MAGGI Ketchup seeks to fulfill the following benefits that are important to their customers.

High quality: MAGGI Ketchup offers a wide selection of health conscious

choices, and utilizes high quality ingredients.

Competitive pricing. Our products will be priced competitive to the market.

3.2.5 Market Trends: The market for ketchup has exploded within the last five years. Explanations for this trend are:

Market supply: The increase of supply has reinforced the demand. Within the last few years many firms that were producing different types of food items have moved to production of ketchup because of the increased margins and market demand.

Health consciousness: Now-a-days people have become more health conscious and MAGGI Ketchup contains nutritious ingredients with tastier flavor.

Food quality. The preference for high-quality ingredients is increasing as customers are learning to appreciate the qualitative differences.

3.2.6 Market Growth:

Now the total size of the ketchup market is more than BDT 1.2 billion. Analysts forecast that the market size will be growing faster. Now people are appreciating the more taste of nutritious food. MAGGI Ketchup contains nutritious ingredient makes food more tasty and delicious. So, customer growth has risen. This customer growth rate can be forecasted to gain better market share.

3.3 SWOT ANALYSIS: MAGGI Ketchup has several powerful strengths on which to build, but our major weakness is higher pricing than local product and unimpressive packaging. The major opportunity is growing demand for foodservices area as well as household user of ketchup that benefits us to expand our market. We also face the threat of ever-high competition and downward pressure on pricing. The following SWOT analysis captures the key strengths and weaknesses within the company and describes the opportunity and threats of outside the company by MAGGI Ketchup. Table2.1 summarizes the main strengths, weakness, opportunities and threats facing MAGGI Ketchup.

3.3.1 Strengths: MAGGI Ketchup can build on three strengths: Brand Image: In Bangladesh, two brand products of MAGGI: - MAGGI Soup and MAGGI Noodles have gained highest market share in the competitive market as well as succeed to make a good brand image. This brand image helps to make an assurance better quality and taste of MAGGI Ketchup to the potential customers. Attractive trade promotion: Our product offers competitive trade promotion to the retailers, which ultimately helps to increase secondary sales. Quality and Taste: Our product maintains good quality and makes it delicious which ultimately helps to gain more ketchup consumer.

3.3.2 Weakness:

By waiting to enter the market until the initial shakeout and consolidation of competitors has occurred, MAGGI Ketchup has learned from the successes and mistakes of others. Nonetheless, we have two main weaknesses: Unimpressive packaging: Our packaging is not so impressive when compare to imported brands packaging. Price: Price is comparatively high to local brands. Table2.1 MAGGI Ketchups Strength, Weakness, Opportunity and Threats. Strengths Weakness: Higher Brand image Attractive trade promotion Quality and Taste Threats and Increased competition Modest economy Downward pressure on pricing Unimpressive packaging Higher pricing than local brands

Opportunity Developing foodservice industry Improvement of product packaging quality. Decreased operations cost

3.3.3 Opportunity:

MAGGI Ketchup can take advantages of three major market opportunities: Developing foodservice industry: People are appreciating the more taste of food. MAGGI Ketchup is not only delicious itself but also increases the taste of other food when MAGGI ketchup is mixed with it. Habit of taking fast-food has been risen when restaurants serves MAGGI Ketchup with other foods. Improvement of product & packaging quality: With continuous improvement process, we improve the ability to improve product & packaging quality.

Decreased operations cost: Follow a disciplined continuous improvement process that facilitates their ability to promote growth while reducing their delivered product cost and eliminating non-value added activities.

3.3.4 Threats: We face three treat at the introducing of the MAGGI Ketchup: Increased competition: More companies (local and foreign brands) are currently available in the market. To gain the reasonable market share, we have to maintain our quality all the best. Modest economy: A slump in the economy-reducing customer's disposable income spent on eating out. Downward pressure on pricing: Increased competition and market share strategies are pushing the product price down.

3.4 PRODUCT OFFERING: MAGGI Ketchup is going to launch two popular variants in the market. MAGGI has created MAGGI tomato ketchup and MAGGI chili ketchup that are differentiated and superior to competitors. Customers can taste the quality and freshness of the product in every bite. The following are characteristics of the product: 1. Best quality 2. More durability 3. Posses no harmful chemical ingredient MAGGI, one of the strategic brands of Nestl, is dedicated to providing the best foods to people throughout their day, throughout their lives. With our unique experience of anticipating consumers needs and creating solutions, MAGGI contributes to consumers well-being and enhances consumers quality of life.

3.5 COMPETITIVE REVIEW: Increased entry of established sauce, ketchup and pickle food industry has pressured industry participants to continually add features and cut price. Key competitors include:

Table. 2.2Selected Competitive companys targeted consumer and price Brand Pran Best Ahmed Druk Roza Meridian BD Heinz Others Pack Size Price Mkt. Share 340 40 20.0% 340 49 19.3% 13.4% 11.6% 7.0% 4.7% 3.5% 2.6% 17.9% 100.00% Targeted Consumer Middle and upper- income household& also restaurants Middle and upper income households & foodservice area Middle-income household Upper income households& foodservice area Households & Restaurants Middle-income household Middle and upper- income household Upper income households& foodservice area Household & foodservice area

340 40 400 63 300 45 285 46 340 50 300 49 Avg. 320 Avg.45

Pran: The ketchup market is dominated by Pran with its 20% market share with 340 gram packed size which is sold in taka 40. Pran is the best selling sauce in household. Middle and upper-income households prefer pran for home consumption. In terms of availability, Pran is available in most of the store. High numeric distribution of Pran can be seen nationally. It has 250 distributors in all over Bangladesh. Pran is giving highest trade promotion to the retailers. It offers credit for the retailers for highest selling in the market.

Best: Best is also the most popular brand in the middle & upper income households. It holds 19.3% market share with 340 gram packed size which is sold in taka 50. Best is the

best selling sauce in foodservice area. In Fast food shop 4gm best sauce is very much popular. It is giving competitive trade promotion to the retailers.

Ahmed: The local brand Ahmed gains 13.4% market share with its 340 gram packed size which is sold in taka 40. The middle-income household mostly uses for it in home consumption.

Druk: Druk is the most popular brand upper income households. It acquires the best selling sauce in foodservice area. Most of the renowned restaurants use druk for food serve. Druk has 11.6 % market share with its 400gram packed size which is sold in taka 63.

Roza: Roza possess 7 % market share. It is also consumed for household consumption as well as restaurants. The chili flavor is mostly used in the restaurant.

Meridian: Meridian is used mostly for in home consumption by the middle-income households. It gains 5% of the total market share. It gives incentive trade promotion for retailers. It offers 1 Sauce free for 1 dozen of sauce purchase for retailers. BD: BD is the newly entry sauce industry in the ketchup market. Within a short time, it gains 3.5% market share for TV communication with high frequency.

Heinz: Foreign brands Heinz acquire 2.6% share with its 300 gram packed size which is sold in taka 49. Resturants and upper-income households is the main customer of Heinz.

Others: Roma, Kohinoor, Kimball, Del Monte, Seema, Suree and others have the rest market. Most of them are used in the restaurants. Most of the restaurants use Chili sauce for cooking and other purposes.

Despite this strong competition, MAGGI Ketchup can carve out a definite image and gain recognition among the targeted segments. Figure-2.1 shows competitive companys markets share holding :

3.6 KEYS TO SUCCESS: The keys to success are producing ketchup that meets market demand. In addition, our ketchup must ensure total customer satisfaction. If these keys to success are achieved, it will become a profitable company. The following are the areas where the company is pioneer:

Uncompromising commitment to the quality of the product. Continuously revitalize the products. Communicate the differentiation and quality of our offering through personal interaction and media.

3.7 CRITICAL ISSUES: MAGGI Ketchup is still in the speculative stage. Its critical issues emerge from the SWOT analysis and review of the market:

National economic conditions, which are not favorable to the people. Constantly monitor customer satisfaction, ensuring that the growth strategy will never compromise satisfaction level.

3.8 DISTRIBUTION REVIEW: Our strategy assumes that we need to go into specialty channels to address our target customer's needs. We position our products as the highest quality, highest incentive offering for our own distribution channel. Our distribution channel is:

Manufactur re

Distribut or

Retailer

Final consumer

CHAPTER-4 MARKETING STRATEGY

4.0 MARKETING STRATEGY: Our marketing strategy is based on a positioning of product differentiation. On the consumer side, we have targeted the middle to upper class households who need ketchup for family and their children to add extra taste to their eating. Most of the middle class consumers want the price of the ketchup be 40 to 45 tk. i.e. they want lower- priced product with high durability and preservation ability. Most of this segment can be demographically described by age (3045).

Besides, we have set a goal to serve some restaurants on the business side. This target market ranges from the small to three or 5 star hotels who want to serve their customers ketchup with a different but wonderful taste and want more preservation within a reasonable price. Each of the four marketing mix strategies conveys our differentiation to the target marker segments identified above.

4.1 POSITIONING:

Positioning is the act of designing the companys offering and image to occupy a distinctive place in the mind of the target market. Actually our strategy is to grab an unoccupied position. Our market positioning strategy is given below in a table:

Company& Product
Nestl(Maggi) (Ketchup)

Target Consumers
Quality conscious consumers of ketchup

Benefits
More preservation ability and tasty

Price
At an affordable price for the middle class and upper class families.

Value Proposition
Tastier, spicy ketchup from the pure ingredients at a moderate price.

4.2 PRODUCT STRATEGY: Our Maggi ketchup, including all the features described in the earlier Product Review, will be sold with a more preservation ability warranty than the other products in the market. In the following year, we will try to increase more taste and ingredients and launch ketchup which the lower-middle class consumers will also be able to buy. Building the Maggi Brand is an integral part of our product strategy. The brand and logo will be displayed on the product and its packaging and reinforced by its prominence in the introductory marketing campaign.

4.3 PRICING STRATEGY:

Maggi ketchup will be introduced at 38 taka wholesale and 45 taka estimated retail price per unit if we want to have some profitability. We expect to lower the price of this first product when we expand the product line by launching the next ketchup. These prices reflect a strategy of attracting desirable channel partners and taking marker share from our major competitor Pran.

4.4 DISTRIBUTION STRATEGY: Our channel strategy is to use selective distribution to have our product sold through wellknown stores and shopping malls. During the first year, we will add channel partners until we have coverage in the country market and the product is included in the major ketchup catalogs and Websites. In support of our channel partners, Maggi will provide detailed specification handouts, full-color photos and displays featuring the product. We will also arrange special trade terms for retailers who place volume orders.

4.5 MARKETING COMMUNICATION STRATEGY: By integrating all messages in all media, we will reinforce the brand name and the main points of product differentiation. We will introduce advertising on a pulsing basis to maintain brand awareness and communicate various differentiation messages. Advertising agency will also coordinate public relations efforts to build the Maggi brand and support the differentiation message. To attract marker attention and encourage purchasing, we will offer some products of Maggi such as Maggi noodles free. To attract, retain and motivate channel partners for a push strategy, we will use trade sales promotion and personal selling to channel partners. Until the Maggi brand has been established, our communications will encourage purchases through channel partners rather than from our Website.

4.6 MARKETING RESEARCH: Using research, we can identify the specific features and benefits that our target market segments value. Feedback from market tests, surveys and focus groups will help us to develop our ketchup. We are also measuring and analyzing customers attitudes toward competing brands and products by surveying in the households and restaurants. Brand awareness research will help us to determine the effectiveness and efficiency of our messages

and media. As we want to establish our own image, we will initiate questionnaire to be acquainted with the consumers need and wants. Finally, we will use Customer satisfaction studies to gauge marker reaction.

4.7 OBJECTIVES: We have set some successive and achievable financial and marketing objectives to be successful in the marker. 4.7.1 Financial Objectives: We want to gain a no loss-no gain condition over the next 3 years. We want to produce total revenue of BDT 4750000 in 1st year and BDT Within 5 years, we want to produce an amount of profit 3.2 million

6,650,000 in the next year. based on per unit price of BDT 38(wholesale price)
4.7.2 Marketing Objectives:

Achieve a first-year unit sales volume of 125,000 units, which represents a projected marker share of around 4% in the product line. Increase second-year share to 5.50%. Arrange of distribution through the leading retailers and distributors in the

country market within next 6 years

CHAPTER-5 FINANCIAL ASPECTS

4.0 FINANCIAL ASPECT: This section will offer a financial overview of MAGGI Ketchup as it relates to the marketing activities. MAGGI Ketchup will address break-even analysis, sales forecasts, expenses forecasts and indicate how this activities link to the marketing strategy: 4.1 BREAK-EVEN ANALYSIS: The break-even analyses indicate that BDT 4,000,000 will be required in sales revenue to reach the break-even point. Our market research forecasts that within 3 years we will reach the break-even point.

4.75

6.65

7.6

8.5

10.5

Table. 4.1 Break-even Analysis Break-even Analysis: Break-even Units Break-even Revenue Assumptions: Per-Unit Revenue Per-Unit Variable Cost Fixed Cost 4.2 SALES FORECAST: 38.00 30.00 4,000,000 500,000 4,000,000

We feel that the sales forecasts group customers into two categories: volume: Table.4.2 Yearly Sales Forecast Sales Forecast 2013 2014 BDT BDT 4655000 BDT 1995000 BDT 6650000 2013 BDT 2572500 BDT 1102500 BDT 3675000 5320000 BDT 2280000 BDT 7600000 2014 BDT 2940000 BDT 1260000 BDT 4200000

families and

restaurants. So, both types of customers will lead us to differently forecast of our sales

Sales Families Restaurant s Total Sales Cost of Sales Families Restaurant s Total Sales

2012 BDT 3325000 BDT 1425000 BDT 4750000 2012 BDT 1837500 BDT 787500 BDT 2625000

2015 BDT 5985000 BDT 2565000 BDT 8550000 2015 BDT 3307500 BDT 1417500 BDT 4725000

2016 BDT 7315000 BDT 3135000 BDT 10450000 2016 BDT 4042500 BDT 1732500 BDT 5775000

4.3 EXPENSE FORECAST: Our expenses occur as the result of both historically successful marketing endeavors and projected marketing programs designed to take advantage of expanding markets and improved product lines. Similarly, the development of publishing department will incur higher start-up expenses than maintenance costs after the initial publication. We have chosen these two new marketing programs as areas where expenses can initially build up because research indicates that they will cause our market share to increase exponentially over time.

Table.4.3 Yearly Expense Budget Marketing Expense Budget 2013 2014 BDT BDT

Personal selling

2012 BDT

2015 BDT

2016 BDT

Advertising Sales promotion Total Marketing Expenses Percent of Sales

100000 BDT 600000 BDT 300000 BDT 1000000 26.67%

144500 BDT 867000 BDT 433500 BDT 1445000 27.50%

165000 BDT 990000 BDT 495000 BDT 1650000 27.5%

185000 BDT 1110000 BDT 555000 BDT 1850000 27.4%

227500 BDT 1365000 BDT 682500 BDT 2275000 27.6%

CHAPTER-5 CONTROLS
5.1 CONTROLS
The purpose of our marketing plan is to serve as a guide for the organization. This marketing plan includes a detailed budget schedule and managerial assignment for every action program. For control purpose, the plan also allows for month-by-month comparison of actual versus projected sales and expense. If there is any mishap in the quality or in the price fixing, the company will control this for its own sake. A contingency plan, attached, has been developed for implementation in case of severe downward pricing pressure. The following areas will be monitored to gauge performance: Revenue: Monthly and annual Expense: Monthly and annual Customer satisfaction: Monthly

5.2 IMPLEMENTATION MILESTONES: The following milestones identify the key marketing programs. It is important to accomplish each one on time, and on budget. Nestle will carry out its marketing strategy and achieve its objectives through a variety of scheduled programs. We will follow a five years planning to achieve our profit margin. We will now analyze the year wise action programs as follows:

2012: We have a plan to initiate a -----tk sales promotion to educate dealers and generate considerable awareness for the product launch in 2009. As part of this push trade strategy, Nestle will perform personal sales promotion. A volume of ----units will be used for this purpose. Then advertising programs through the various mass Medias radio, television, print, internet etc will be performed to acknowledge people about the product.

2013: In the very beginning of this year, the personal sales promotion will be withdrawn. We have a target to gain at least the sales revenue of ----tk in this year projected. By this revenue, we can cover partially the losses of the previous year. To reach the breakeven point next year we have to build the platform. We expect that people are fully aware of our product now.

2014: This year is very much important for running our business. This year when we have to reach our break-even point as we expect. We will complete our sales of 500000 units to achieve no loss-no profit situation. Here we will earn ---------tk of sales revenue, while the sales promotion will be accelerated with respect to the market demand.

2015: The past three years were to build up the platform for the sales of our product. In this year we will emphasize on the quality control of our product. To maintain the other marketing action we may have less emphasize on this task. We will try to maintain the price same as before. The revenue function may get a downward sloping for the quality control at the same price. So we have to increase the sales volume at a slight amount. From the very beginning of the year we have to notice that we are getting nearer to the profitability targeted. 2016: Gaining satisfying profitability is the main target of this year. Further features should be added to our product. Frequent analysis of the quality of the product will be carried out for the quality control. Analyzing customer satisfaction is also a vital activity for running the business.

. 5.3 MARKETING ORGANIZATION:

The chief marketing officer of Maggi, Nestl Bangladesh Limited is responsible for overall marketing strategy, direction and implementing it. We have hired the countrys most familiar marketing channels to handle national sales campaigns, trade and consumer sales promotions and public relations officer. The following figure shows the structure of the seven person marketing organization.

5.4 CONTINGENCY PLANNING: Every business has some risks and difficulties. Similarly, our product may face some risks and difficulties. 5.4.1 Difficulties and Risks:

Pran possesses the major parts of the market. As a new product, we may It is risky in the first year to make every consumer believed that ours is the From the business view point, the restaurants may not be eager to use new

have to suffer if we cannot persuade the consumers. best tasty and quality product. product as they trust the common ones.

5.4.2The Worst Risks:

Other potential competitors may produce products with the same features. If the competitors decrease their price, initially we will not be able to decrease our price as we are just launching our product. For inflation and decreasing living standard, people may not be willing to buy this product and this may create the run on of our business.

5.5 The Marketing Program: Maggi ketchup will use direct selling as the marketing arm to sell its products. Direct Selling: We will have the school representatives. They will make their initial presentation to a school principal. We will do it to make the present guardians familiar of our product and its taste and quality.

APPENDIX
Bibliography

1. Kotler Philip, Marketing Management, 11th edition, Prentice Hall, 2003 2. Kotler Philip & Armstrong Gary, Principles of Marketing, 11th edition, Prentice Hall,

2006 3. http://www. Nestle .com

4. http://www.nutrition.nestle.com

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