Executive Summary

The report titled ‘Understanding of Pregnant Women & Breastfeeding Mothers

Nutritional Products Market in Bangladesh & its Growth Potentiality’ has been written
using qualitative research techniques. Secondary data collection, depth interviews and
a survey was undertaken to gather information. Respondents were divided into
subgroups of consumers, doctors and retailers. Sample size was 60 consumers, 24
doctors and 100 retailers.

During pregnancy the nutritional requirement of women increase and is further

increased during the lactation period. At this point women need more proteins, iron,
calcium, vitamins and minerals. From a Bangladeshi perspective women in general
suffer from malnutrition and are especially deficient in iron and folic acid. Doctors
prescribe supplements to fulfill this gap created during pregnancy.

The concept of a milk based fortified product is still not extremely popular and there is
low awareness. Survey results indicated that most doctors feel that such products is
very necessary. It is also backed up by research conducted at various places which
shows milk based fortified products improve the nutrition of women and also the birth
weight and nutrition of babies.

The market potentiality of such products is the major cities of Bangladesh. A sales
volume analysis undertaken during the research indicates sale of such products in
Dhaka City is Tk. 81, 60,000. This is based on sales figures provided by sixty three
retailers. Demand depends upon pregnancies each month within the sub group of Socio
Economic Class (SEC) 1 & 2. The target market for the product is pregnant women and
lactating mothers within the household income of SEC 1 & 2 and within the age bracket
of 18 – 40 years.

The strong brand name of Nestlé provides Nestlé with strength to market such a
product. The market is still not saturated as there is one major player. The existing sales
team, the strong distribution network and the management skills of Nestlé are some of
its strengths. There is an existing demand for quality nutritional products and the
potential of creating awareness through the media is still untapped. However the
enormous market share of Mothers Horlicks might prove to be a threat to Nestlé. The
most important variable in this market is the role of doctors in demand gene. ration and
needs to be handled with special care.

The survey indicates that the major player in the market is Mother Horlicks. 78% of the
retailers interviewed stock the product and consumers and doctors are mostly aware of
Mothers Horlicks in this category.

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Mothers Horlicks follows an intensive distribution strategy selling through almost 50000
retailers throughout Bangladesh. Mothers Horlicks is not promoted through the media
and all demand generation is done through doctors. They do not position on a price
platform. GlaxoSmithKline uses a very simple strategy to market the product. They
import from India and sell in Bangladesh.

The communication strategy designed for this product has a very simple message. It
says that the product provides the required nutrition and assures consumers of quality
and unparallel standards. The initial awareness is to be raised through the media such
as electronic and print media. Doctors are also a very important communication channel
and they will recommend the product after the sales team can convince them of product
quality.

As an entry strategy Nestlé has to provide a better quality product than its competitors
and position itself on quality. Seminars with doctors, road shows with hospitals, trade
promotion for retailers and the raising of awareness though the media is essential while
entering into the market.

Nestlé should follow a high value – price strategy for this product. Price should be
charged within Tk. 240 to Tk. 260. Nestlé should follow a three level distribution strategy
and use its existing distribution agents for this product. Intensive distribution should be
implemented at all major divisional cities.

The survey indicates taste is vital for product success. Good taste along with multiple
flavors is important for success. Consumers emphasize on nutritional value and proper
nutritional components are essential.

The product category is a very feasible option in Bangladesh. A properly designed

marketing approach and a properly managed brand will lead to the product being
another addition to the success stories of Nestlé.

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