Origin of the report

During the fall’04 semester of BBA program of North South University, we were
required to do a term project in the course MKT202. This course is designed to give the
business students an understanding of principles of marketing that is necessary to
understand the basic marketing concepts applied by companies. Out of several options of
the term project topics, we have chosen a company ‘Nestlé Bangladesh Ltd.’ for our term
project.
Objective of the report
To prepare and submit the term project within specified time.

To have a very practical idea and over viewing the marketing sector focusing on a
specific company and their performance in Bangladesh.

Present company’s current mission, vision, objectives, and goals.

Find out their strength, weakness, opportunities, threats.

Defining their market segmentation, target market and product positioning and key
marketing areas.
Source of information

The report is originated from both primary and secondary data source.
Primary data:

Face to face conversations with employees.

By arranging appointment with top officials of the company.

Secondary data:

Company’s reports and other published materials

Various marketing books specially our text book

Scope and Limitation

There was great difficulty of finding appointment of the top officials of Nestlé

Although talking to the officials interviewing few personnel of top management and
talking to personal references was helpful, still we could not cover in depth analysis on
the above mentioned topic.

Getting relevant papers, documents, information were strictly prohibited.

The officers were hesitant to reveal the information in regard of confidentiality

Unavailability of financial data as Nestlé does not publish financial report to the public
Restriction on time and resources of data due to absence of corporate website in
Bangladesh
Background of the company

Nestlé – the world’s largest food group, not only in terms of its sales but also in terms of
its product range and its geographical presence: Nestlé covers nearly every field of
nutrition: infant formula, milk products, chocolate and confectionery, instant coffee, ice-
cream, culinary products, frozen ready-made meals, mineral water etc. We are also a
major producer of pet food. In most of these product groups and in most markets, Nestlé
is the leader or at least a strong number two. We are a very focused company, with more
than 94 percent of the sales coming from the food and beverage sector. Nestlé is present
around the globe, on all continents, with around 230,000 people working in more in an 84
countries with 466 factories and with sales representatives in at least another 70
countries. Many of its brand names are familiar to us: Nescafé, Nido, Maggi, Polo,
Smarties, Milo, Perrier, Friskies, KitKat, Crunch….Some of its products have broken
records: 3,000 cups of Nescafé are consumed every second. And KitKat merited an entry
in the Guinness Book of World Records as the world’s best-selling chocolate bar with
418 KitKat fingers eaten every second around the world!

Nestlé with headquarters in Vevey, Switzerland was founded in 1866 by Henri Nestlé and
is today the world’s biggest food and beverage company. Sales at the end of 2003 were
CHF 88 bn, with a net profit of CHF 6.2 bn. They employ around 253,000 people and
have factories or operations in almost every country in the world.[1]

Company profile of Nestlé Bangladesh Ltd.

Nestlé Bangladesh Limited started its first commercial production in Bangladesh in 1994;
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. The managing
Director of Nestlé Bangladesh Ltd. is Mr. Aldo Siegrist.

The Company’s strategy is guided by several fundamental principles. Nestlé’s existing

products grow through innovation and renovation while maintaining a balance in
geographic activities and product lines. Long-term potential is never sacrificed for short-
term performance. The Company’s priority is to bring the best and most relevant products
to people, wherever they are, whatever their needs, throughout their lives.[2]

Nestlé Bangladesh’s vision is to be recognized as the most successful food and drink
company in Bangladesh, generating sustainable, profitable growth and continuously
improving results to the benefits of the shareholders and employees.

The corporate head office of Nestlé Bangladesh Ltd. is situated in one of the finest
locales of Bangladesh, Gulshan. The address is the following:
Nestle Bangladesh Ltd.

Gulshan Tower (4th Floor),

Gulshan Avenue, Dhaka-1212

Tel: 02-9882759-65

Fax: 02-8822035

Its factory is situated at Sripur, which is 55 km north of Dhaka. The factory produces
instant noodles, cereals and repacked milks, soups, beverages and infant nutrition
products.

Today Nestlé Bangladesh Ltd. is a strongly positioned organization. With their policy
Nestlé is confident that it will continue to grow in terms of integrated development,
concentrating on their core competencies and their commitment to high quality. Nestlé
also aims of providing the best quality foods to the people of Bangladesh.

Business Principles

Since Henri Nestlé developed the first milk food for infants in 1867, and saved the life of
a neighbor’s child, the Nestlé Company has aimed to build a business based on sound
human values and principles.

While Nestlé Corporate Business Principles will continue to evolve and adapt to a
changing world, its basic foundation is unchanged from the time of the origins of the
Company, and reflects the basic ideas of fairness, honesty, and a general concern for
people.

Nestlé is committed to the following Business Principles in all countries, taking into
account local legislation, cultural and religious practices:

• Nestlé’s business objective is to manufacture and market the Company’s products

in such a way as to create value that can be sustained over the long term for shareholders,
employees, consumers, and business partners.

• Nestlé does not favor short-term profit at the expense of successful long-term
business development.

• Nestlé recognizes that its consumers have a sincere and legitimate interest in the
behavior, beliefs and actions of the Company behind brands in which they place their
trust and that without its consumers the Company would not exist.

• Nestlé believes that, as a general rule, legislation is the most effective safeguard
of responsible conduct, although in certain areas, additional guidance to staff in the form
of voluntary business principles is beneficial in order to ensure that the highest standards
are met throughout the organization.
• Nestlé is conscious of the fact that the success of a corporation is a reflection of
the professionalism, conduct and the responsible attitude of its management and
employees. Therefore recruitment of the right people and ongoing training and
development are crucial.

• Nestlé continues to maintain its commitment to follow and respect all applicable
local laws in each of its markets.[3]

Objective

Nestlé’s business objective at all levels is to manufacture and the market the company’s
product in such a way as to create customer life time value so that it can be sustained over
the long term for shareholders, employees, consumers, business partners, and the large
number of national economies in which Nestlé operates.
Achievements

Nestlé Bangladesh Limited has succeeded immensely in establishing itself as a high

quality food industry in Bangladesh. As suggested by Hasan Mehdi, the marketing officer
of Nestlé following are the prime achievements:

First to launch high quality infant nutrition products in Bangladesh.

First to produce instant noodles under local manufacturing in Bangladesh.

Nestlé firmly emphasizes on real internal growth and it is growing from year to year.
Nestle is also proud of the fact that its growth of sales is sustainable, is increasing always.
It measures its achievements in terms of its mass profit and acquiring equity in the
market. Its main purpose is customer acknowledgement, the fact that consumers realize
that nestle is all about “quality”. The growth of sales had never degraded for Nestlé.
KEY SUCCESS FACTORS

- Strong brands / relationships with consumers

- Research and development

- Innovation and renovation

- Product availability

- Building relations with medical and scientific community

In light of Nestlé Bangladesh Ltd., we have tried to analyze the following components of
marketing strategy through different theories and applications:

External factors

Social
Nestlé makes an effort to integrate itself as much as possible into the cultural and social
values of the different countries. During operation in Bangladesh Nestlé has launched
two products which explains how Nestlé values social and cultural factors, Recently
Nestlé Bangladesh has launched “Halim Mix” which was meant to be distributed only in
Bangladesh. Another example being “Maggi Noodles” itself. It has a very big market
both in Malaysia and Bangladesh but the one distributed in Bangladesh has an added taste
that is, it is spicier than the one in Malaysia. This has been done to match the taste buds
of Bangladeshi consumers.

Ethical

Although Nestlé faces ethical dilemmas in commercialization of its products, it does not
consider its high price to be an ethical crisis. This is because they are not ready to
compromise their quality in order to make their product widely available to all.

Internal factors

Marketing structure: Marketing strategy

Nestlé is more people, product and brand oriented than system oriented. Nestlé favors
long-term successful business development and even to grater extent, customer life-time
value. At the same time Nestlé does not loose sight of the necessity to improve in terms
of quality, price and distribution. However, Nestlé remain conscious of satisfying the
wants needs and demands of its consumers. It is also aware of the need to generate a
sound profit annually.

Nestlé seeks to earn consumer’s confidence, loyalty and preference and anticipate their
demands through innovation and renovations. Therefore Nestlé is driven by an acute
sense of performance adhering to quality and customer satisfaction.

Nestlé is as decentralized as possible within its marketing strategic definitions requiring

increasing flexibility. Nestlé is always committed to the concept of continuous
improvement of its activities and customer satisfaction through market segmentation,
positioning and target marketing.

The effective formulation of their marketing strategy depends on the proper match
between the three key elements:

Consumer
Quality
Competition
One thing to be mentioned is that the match between consumer and quality is most
important for Nestlé. Besides there are some other concerns that effect the marketing
strategy. This concerns are where to compete, how to compete and when to compete.
The current marketing strategy of the company is based on the foundation of the four
pillar strategy which has the following factors:

Market segmentation

Nestlé is targeted towards the consumer market. So Nestlé food products can be treated
as consumer products. The major factors which play key role in the process of consumer
segmentation are:

I. Demographic (age, income, etc.)

II. Consumption pattern
III. Social economic factors
IV. Brand loyalty patters
V. Perceptual factors
VI. Cultural factors
Proper consideration of the given factors results in effective consumer segmentation for
Nestlé. Since the product range is expensive in Bangladesh; Hasan Mehdi, the Marketing
Officer, says, “………………………we have to concentrate strongly on income of
consumers.”

Target market

Nestlé’s main focus is the socio-economic class, which is the company wide target.
Nestlé’s potential consumers are those who acknowledge that Nestlé is all about quality
and most importantly those who can afford the products. The strategy for selecting their
target market is the following:

Income level (>10000 Tk)

Education

Quality realization
Positioning strategy

Nestlé’s positioning strategy comprises of the three steps:

Identifying the right competitive advantage

Choosing the right competitive advantage

Selecting the right completive advantage

The company then effectively communicates and delivers the chosen position to the
market. Nestlé strongly believes that their products are specific and so are the product
benefits. This, Hasan Mehdi, the marketing officer, termed as “Benefit Positioning”
Current Product Line

Nutrition Products

Cerelac

Lactogen

Good Start

Neslac, etc.

Performance Nutrition

Power Bar

Nutren

Neston, etc.

Culinary Products

Soups

Seasonings

Sauces

Maggi

Hot cup, etc.

Coffee and Beverages

Nescafé

Nesquik

Milo, etc.
Sugar and Chocolate Confectionary

Polo

Acti-V, etc.

KitKat
Quality Street

Milky Bar, etc.

Milk Products

Nespray

Milkmaide

Coffeemate, etc.
Regarding new upcoming products, Nestlé is looking forward to renovation and
innovation for Maggi noodles and soups. This might be in terms of new flavors or
improvising the quality and the quantity of the products.

Competition Structure

Nestlé supports free enterprise and therefore competes fairly and ethically and expects
other company’s right to do so. The competition structure for Nestlé in Bangladesh is
very limited whereas it faces bigger challenges in other countries such as India, china,
etc. Still Nestlé tends to face competition in the food market. In terms of quality and
product square is the biggest challenge and threat. Pran is the strong contender in terms of
turnover. One strong upcoming challenge for Nestlé is BD Foods. When it comes to
beverage and drinks Nestlé consider Ispahani and Coca-cola to be strong players.
Although 70-80% consumers prefer Maggi noodles, Cocola seems to be catching up fast.

In terms of competitive advantage, quality seems to be the foremost tool for Nestlé.
Although Nestlé tends to face criticisms in terms of price and number of products sold, in
comparisons to local competitors, Nestlé intends to abide by their policy which never
attempts to compromise quality.

Advertising and Promotional activities

The company focuses on its corporate image that “Nestlé is all about quality”. It hardly
emphasizes on promotion and publicity because consumers in Bangladesh already know
that ensuring product quality is what Nestlé focuses, not price. Nestlé mainly focuses the
two possible advertising objectives:

Informative advertising

Persuasive advertising

Since Nestlé is already an acknowledged and quality food product company in

Bangladesh, it does not emphasize much on publicity and promotion. Here are a few
points to ponder about advertising done by Nestlé Bangladesh Ltd.:

Nestlé cannot advertise for infant milk.

Mass advertising is done for new products only

Advertising and promotion is done by product wise

15% of marketing communication budget is spend for publicity

More indulged into product sampling and test marketing

Nestlé had performed test sampling in the year 2003 on Nescafé.

Nestlé Bangladesh Ltd. has specialized agencies for their promotional purposes. They are
the following:

Product name Advertising agencies

Nescafé Unitrend
Milo (25%) Unitrend
Maggi Protishobdo
Polo Protishobdo

Nestlé is associated with the following profiles of major media types:

Medium Responses
Newspapers (e.g. Prothom Alo) Small Pass along audience, aprox 1 lakh. High cost per
exposure.
TV Reach up to 20 lakh audience
Billboards Very few
Local Magazines Negligible
Outdoor -
Internet N/A

The given table suggests that Cost per Contact is better in television advertisement than
in newspapers and other media for Nestlé. Nestlé also believes that television receives
better clutter, fleeting, exposure and a mass audience for promotion, which is only to be
considered for Nestlé Bangladesh Ltd.

The main advertising is done on television and to a very little extent, newspapers. The
emphasis is on building a corporate image about maintaining their high quality. There are
also considerations underway to promote upcoming brands and products to extend their
promotional activities by putting up more billboards, posters, flyers, and banners. They
will start internet as their medium from year 2005. These decisions are carried out by the
marketing department. Hence, Nestlé Bangladesh is trying to integrate their promotional
activities and have an integrated marketing approach.

Nestlé’s Consumer Communication and Relationship

Nestlé is committed to offering consumers high-quality food products that are safe, tasty
and affordable. The Nestlé Seal of Guarantee is a symbol of this commitment.

It also believes in maintaining regular contact with the consumers. This applies both to
how they present their products and to how they address their consumers’ questions and
concerns. When Henri Nestlé prepared his first boxes of infant formula for sale, he put
his address on the packages so people would know where to go if they had questions.
Today, the Consumer Relationship Panel with the words “Talk to Nestlé” expresses the
same commitment.

This is why they have a worldwide Nestlé Consumer Services network devoted to caring
for their consumers. Nestlé’s people have expertise in a wide range of areas such as
nutrition, food science, food safety and culinary expertise. They provide the prompt,
efficient and high quality service that consumers expect from Nestlé.

In addition, the expertise teaches them talk with consumers and above all, to listen.
Listening helps them to understand what people want. Nestlé uses the insights gained
from relationships with consumers to drive product development.

Nestlé care for Nestlé’s consumers because its success depends on meeting their needs
and expectations. Through listening and understanding, it can make products that they
will want to use all through their lives.

Although Nestlé is very conscious of its role in communicating responsibility to

consumers, Nestlé in Bangladesh does not really perform much consumer
communication. As noted their marketing officer, “For Nestlé, our consumers are our
distributors”. Nestlé has a separate department designated as “Consumer Relation
Department” where the purpose is served. A P.O.-Box had been assigned where
consumers can send complaints, mails or any enquiries directly in order to reach Nestlé.
This can also be termed as “Post Purchase Service”. Consumer communication is not
much practiced in Bangladesh because at the moment, Nestlé does not have any
organized internal database of its consumers. Hence, it can be said that Nestlé hardly
takes any initiatives in case of consumer communication.

However, for specific brands, such as Milo, Nestlé Bangladesh has an organized database
of 1000 consumers who are the core that is final consumers of Nestlé. Whenever, there
are any upcoming new products, Nestlé sends these loyal consumers newsletters, leaflets,
free samples and even feedback questionnaires. This is the only consumer
communication that Nestlé does in Bangladesh; also consider to be Direct Marketing.
For any other products Nestlé never performs consumer communication.

Retaining old customer or attracting new ones?

For Nestlé, it is a 60-40 ratio. They believe whoever is loyal, Nestlé should do their best
to retain their loyalty because if this loyal consumers become disloyal their word-of-
mouth may contaminate other eager consumers. So, Nestlé emphasizes more on retaining
loyalty rather than attracting new consumers.

Customer Satisfaction Level

Nestlé regards its consumers as its most valuable asset involvement at all levels start with
open communication whether it deals with customer satisfaction or their needs and wants.
Nestlé recognizes that its consumers have a sincere and loyal interest in the behavior,
beliefs, and actions of the company behind brands in which they place their trust. With it
consumers the company would not exist. Nestlé satisfies consumers in many countries
and cultures through out the world. According to the Marketing officer Nestlé
Bangladesh Ltd, customer satisfaction varies from one aspect to another. In terms of
product delivery consumers do not give similar responses. He explained with the simple
example, Nescafé for some is refreshment, for others it is relief. At the end of the day,
Nestlé consumer are 100% satisfied with the high quality of Nestlé products.

The Nestlé Human Resources Policy

Nestlé attempts to recruit relatively young people with a view to long-term employment.
Nestle offers an excellent working environment where people, regardless of their levels,
have equal opportunities to express their opinions. Management of Nestlé believes in an
open door policy and highly discourages bureaucracy in the operational process. The
Organization offers an international and multicultural working climate which is
conducive to creativity, innovation and the development of personality and which gives
new employees responsibility at an early stage of their career, and opportunities of fast
development of high performers.

Nestlé is a human company where people are the most important asset and where they
can develop their personality and skills to their own and their families’ satisfaction.

Nestlé offers a competitive compensation package and social benefits in line with
Nestlé’s commitment to high standards. In addition, the organization offers progressive
development through on-going training throughout your career. Training possibilities are
available to all staff. Nestlé recently introduced e-learning in Bangladesh, a web-based
programme for self development. When joining Nestlé, your training is not over – it is
only just the beginning! The human resource goal for the company is to be recognized as
the preferred employer in Bangladesh.

SUCCESS IS BUILT ON QUALITY

Quality is the foundation of Nestlé’s success. Every day, millions of people all over the
world show their confidence in Nestlé by choosing their products. This confidence is
based on their quality image and a reputation for high standards that has been built up
over many years.

Every product on the shelf, every service and every customer contact helps to shape this
image. A Nestlé brand name on a product is a promise to the customer that it is safe to
consume, that it complies with all regulations and that it meets high standards of quality.
Customers expect them to keep this promise every time.

Under no circumstances will they compromise on the safety of a product and every effort
must be made to avoid hazards to health. Likewise, compliance with all relevant laws and
regulations is a must and is not negotiable. People, equipment and instruments are made
available to ensure safety and conformity of Nestlé products at all times.

The effort is worth it. Companies with high quality standards make fewer mistakes, waste
less time and money and are more productive. They also make higher profits.

Quality is the Nestlé’s most successful product. It is the key to their success, today and
tomorrow.

THE CUSTOMER COMES FIRST

Nestlé want to win and keep customers: distributors, supermarkets, hotels, shopkeepers
and the final consumers. They have very different requirements. Trade customers expect
excellent service, correct information and timely delivery. Consumers consider taste,
appearance and price when they make their choice. Nestlé wants to understand what
customers want and respond to their expectations rapidly and effectively.

It serves various groups of consumers and there is demand for products at different levels
of perceived quality and price. All customers, however, expect value for their money –
good quality at a reasonable price.

When offering quality to customers it also means environmental quality. Nestlé shares
society’s concern for the environment and is committed to environmentally sound
business practices throughout the world.

Customers are central to their business and they must always respect their needs and
preferences.
QUALITY IS A COMPETITIVE ADVANTAGE
Nestle live in a competitive world and Nestlé must never forget that its customers have a
choice. If they are not satisfied with a Nestlé product, they will switch to another brand.
Its goal, therefore, is to provide superior value in every product category and market
sector in which it competes.

The pursuit of highest quality at any price is no guarantee for success, nor is a single-
minded cost-cutting approach. Lasting competitive advantage is gained from a balanced
search for optimal value to customers, by simultaneous improvement of quality and
reduction of cost.

Success can never be taken for granted. Nestlé must watch and learn from its competitors.
If they do something better, Nestlé must improve its own performance. Nestlé can
achieve competitive advantage through Quality.
QUALITY IS A JOINT EFFORT
Operating companies are fully responsible for maintaining agreed quality standards. Not
only Production units, but also Marketing, Purchasing, Distribution and Sales have a vital
role to play in providing quality to customers. This implies a thorough knowledge of the
products and services nestle offer.

Quality units at different levels of the organization provide specific support, promote
quality awareness, assume guardianship and audit the system. Quality departments
monitor operations against agreed standards and must intervene in case of nonconformity.

Quality policy and principles, the mandatory standards and the recommended tools for
implementation are laid down in the Nestlé Quality System which is applicable
throughout the group. Further directions are given through instructions, norms and
guidelines, often specific to a product.

Nestlé’s business partners, such as raw material producers, packaging suppliers, contract
manufacturers and distributors are expected to share Nestlé’s concern for Quality. They
too must set up an adequate quality system, so as to meet Nestlé’s requirements
consistently.

The quality efforts must be shared by every function and department in the company as
well as Nestlé’s business partners.
QUALITY IS MADE BY PEOPLE
Adequate equipment, procedures and systems are needed to make Quality; so are
involved and dedicated people. Each and every Nestlé employee must do his best to
provide quality products and services.

Training and teamwork are crucial to the successful implementation of high quality
standards. Continuous training ensures that everyone understands his tasks and has the
necessary skills to carry them out. Teamwork allows us to achieve results that are greater
than the sum of individual efforts.

Nestlé motivate employees by demonstrating management commitment to Quality, by

setting challenging goals and by giving them responsibility and recognition. It is through
employee involvement that goals and targets can be achieved in the shortest time.

Quality must be a way of life for everyone in the company.

QUALITY IS ACTION
Quality is the result of deliberate action. It is the responsibility of senior managers to
communicate the quality objectives and to provide the resources necessary for their
implementation. It is then up to all employees to make Quality happen throughout the
company.

Progress is followed by listening to Nestlé’s customers and by measuring its

performance.
Shortcomings and mistakes must be analyzed and corrected. Problems must be
anticipated and prevented before they occur. Nestle also must identify and take advantage
of opportunities. To stand still is to fall behind. So nestle must strive for continuous
improvement in every area. It is through many small improvements as well as through
major breakthroughs that Nestlé will achieve excellence.

As Peter Brabeck-Letmathe and Rupert Gasser supposed, “At Nestlé, Quality is our first
priority. Let us practice it every day.”[4]

Nestlé: The world food company

Beverages
Culinary Products

Confectionery

Dairy

Chocolate

Ice Cream

Nutrition

Market audit:
The marketing audit is divided in to two parts:

i. External Audit (Opportunities & Threats)

ii. Internal Audit (Strength & Weakness)
(I) External Audit

Scanning the external environment of Nestlé, we tried to find out the opportunities and
threats that are pointed out here:

Opportunities:
The ability to expand their product line that requires an approach that is compatible with
Nestlé’s strengths and that compensates for its weaknesses, e.g. to make certain products
available in the market at a relatively lower price so that a larger number of consumers
can buy it………products such as Cerelac.

Enhance distribution of their Infant Nutrition Products in a country like Bangladesh

where malnutrition already exists, increasing the distribution channels and channel
outlets.
Threats:

Few local manufacturers who tend to sale their products at a relatively lower price
through various unethical means. For instant, many do not value expiry dates since not
much restrictions are practiced in Bangladesh.

High degree of bargaining power of suppliers.

(II) Internal Audit:

Then we tried to analyze the internal situation of Nestlé and we figured out the following
strengths and weaknesses:
Nestlé Streanths:
A portfolio of products which responds to the consumer trend for lighter yet indulgent
snacking
A unique strategic position which combines powerful local brands with strong global
product brands
Dedicated core staff who are willing to provide significant labor hours to accomplish
targets
Centralized organization that helps in easier coordination of business activities

Nestlé Weaknesses:
Far fewer staff than actually required in terms of tasks to be completed.

Significantly less customer support services than is required in terms of the number of
customers and the complexity of the services offered.

Except form Milo, they have no post purchase service for other products in Bangladesh.
Another Approach toward Strengths & Weaknesses
Apart from conducting the SWOT analysis, under marketing assessment, a different
approach is taken to make an in depth analysis about Nestlé. In this approach, first, some
core factors are identified against which the performance or relative strength or weakness
of Nestlé can be measured. These factors include:

i. Marketing Factors
ii. Manufacturing Factors
iii. Organizational Factors
But these factors are too broad. So, further some criteria were developed for each factor
to be evaluated. Then the relative weaknesses or strengths are measured against each
criterion that is summarized here in a tabular format:

P.T.O

Strengths & Weaknesses of Nestlé

Fundamental Strength Marginal
Strength
Neutral Marginal
Weakness
Fundamental
Weakness

Marketing Factors:
Relative Market
Reputation
Previous Performance
Competitive Stance
Customer Loyalty
Depth of product range
Product quality
New product program
Distribution cost
Dealer network
Geographical coverage
Sales force
After sales service
Manufacturing cost
Pricing
Advertising
Structure of competition
ü
ü

ü
ü
ü

ü
ü
ü

ü
ü
ü
ü

ü
ü
Manufacturing actors:
Production facilities
Flexibility
Workforce
Technical skill
Delivery capabilities
ü
ü

ü
ü
Organizational Factors:
Culture
Leadership
Managerial capabilities
Workforce
Flexibility
Adaptability
üü
ü

Nestlé’s

Commitment to

Environmentally

Sound Business

Practices
Nestlé respects the environment, supports sustainable development and is committed to
environmentally sound business practices throughout the world. To fulfill this
commitment, Nestlé:

• integrates environmental principles, programmes 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 none 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.

The Supply Chain

Bringing a food product to the consumer involves a continuous process from farm to
table. Integrated measures for preserving the environment, and consequently for
optimizing global environmental benefits, are put in place along the supply chain. Nestlé
endeavors to apply the following practices to meet its environmental commitment.

Agricultural

Raw Materials

In general, Nestlé is not directly involved in the production of raw materials. Wherever
possible, locally available raw materials are used. They are either obtained directly from
producers or purchased through trade channels. Nestlé applies the following principles
when sourcing raw materials:

all raw materials must meet both legal and internal quality criteria, including limits on
possible environmental contaminants;

whenever possible, preference is given to raw materials that are produced by

environmentally sound farming methods (e.g. integrated crop management); and

farmers are encouraged to apply sustainable farming methods and, where appropriate, are
provided with assistance in crop production and dairy farming. Such assistance includes
the provision of recommendations for the conservation of natural resources (soil, water,
air, energy, biodiversity) and techniques for reducing environmental impact.

Manufacturing
Manufacturing comprises all processes that are necessary to transform perishable raw
materials into safe and convenient food products for consumers. Nestlé strives to achieve
optimal performance in its manufacturing activities, including the environmental aspects.
As such, the manufacturing practices of the Group:

respect natural resources by emphasizing the efficient use of raw materials, water and
energy;

minimize the use of environmentally critical substances;

continuously seek improvement in the efficiency of production facilities; and

Reduce waste generation and emissions as much as possible; consider recycling of waste
as a priority and dispose of non-recyclable waste in an environmentally sound manner.

Regular environmental assessments of Nestlé’s manufacturing practices are conducted to:

• evaluate factory performance;

• review factory compliance with applicable legislation and Nestlé’s own

standards;

Packaging

• fully investigate incidents that could affect the environment and take relevant
measures; and

• compare results with previous targets and set new improvement

objectives.

In addition, Nestlé exchanges information on environmental protection technology and

practices in order to ensure a wide use of best practices. Nestlé encourages its contract
manufacturers to use environmentally sound manufacturing practices.

Packaging serves a major role in our daily lives. It protects food products from spoilage
and ensures safety from manufacture through storage, distribution and consumption.

Packaging may also provide tamper-evidence features. It communicates information,

including nutritional information and serving instructions, and provides the convenience
demanded by today’s consumers. Nestlé is committed to reducing the environmental
impact of packaging, without jeopardizing the safety, quality or consumer acceptance of
its products. It is Nestlé’s objective to develop safe and wholesome packaged foods using
the most efficient and appropriate packaging materials available, while, at the same time,
satisfying consumer requirements and expectations. Nestlé seeks packaging solutions
that:
result in the lowest possible weight and volume of packages;

take into account new packaging materials and processes that reduce the impact on the
environment;

avoid the use of substances that can adversely impact the environment during packaging
production and disposal;

decrease packaging waste at all stages, including package manufacturing, utilization and
disposal;

increase the use of recycled materials wherever possible; and

Increase the recyclables and compatibility of its packages with existing waste
management schemes.

Regular assessments of Nestlé’s packaging are carried out and action plans are
implemented. Nestlé supports industrial and governmental efforts to promote integrated
waste management that takes into consideration matters such as source reduction, reuse,
recycling, composting, energy recovery and landfill. Nestlé encourages suppliers of its
packaging materials to adopt sound environmental practices.

Distribution

Marketing

Distribution of products from the factory to the customer involves transport and storage.
Efficient management of the distribution system is essential to preserve the safety and
quality of Nestlé’s products, to ensure a high level of customer service, and to meet its
commitment to environmentally sound business practices.

To this end, Nestlé:

selects appropriate transportation modes, with particular attention given to optimum unit
loads (pallets), vehicle capacity utilization, route planning and consolidation with outside
partners, scheduling and fuel conservation;

optimizes warehouse and distribution centre locations and environmentally efficient

operational systems; and

identifies and implements measures to reduce energy consumption and waste. Nestlé
encourages its distribution service providers to use environmentally sound practices.

Marketing is based on the principle of satisfying consumers’ needs. The overall trust of
consumers in Nestlé’s brands and products comes from a quality image that has been
continuously strengthened for over 130 years. Nestlé strives to increase this trust through
its commitment to environmentally sound business practices.

For this reason, Nestlé:

bases environmental claims in advertising, promotional material, labeling and corporate

communications on solid scientific evidence; and

selects materials and printing methods for merchandising materials such as consumer
offers, in-store promotions, display materials, leaflets and printed materials in light of
environmental considerations.
What makes Nestlé Nestlé?

• Inherited attitude

• Appreciation of the individual

• Understanding, knowledge and ideas

• The pull of its brands

• People and relationship driven

Flood relief

Nestlé Bangladesh donates products to support the Prime Minister’s Relief Fund of
Bangladesh which helps victims of floods and other natural disasters. The Company also
assists with fund-raising efforts for the Flood Relief fund.

Medical support

The Company contributes to the Floating Hospital Project which provides medical
assistance for the poorest of the poor people.

Food support

The Company also runs a feeding programme for a school, established for the under-
privileged children of Dhaka city slums. Under this programme, food is supplied twice a
week for the students.

Sports development programme

Cricket is the most popular sport in Bangladesh. Nestlé Bangladesh has stepped forward
together with the Bangladesh Cricket Board (BCB) to develop cricket talent for the future
under a special sponsorship programme. Milo will sponsor a series of local cricket
development camps and tournaments, to be organized by BCB for the under 13 and under
15 age groups. Through this specific programme, a pool of young talented cricketers will
be identified to ultimately represent Bangladesh internationally.[5]

Finally, we would like to conclude by admitting that through extensive perseverance and
maximum type commitment. We have succeeded in accomplishing our MKT202 project.
Through this project, we have tried to the best of our capabilities present and overview of
all the marketing strategies and concepts applied by Nestlé Bangladesh Ltd. to achieve a
renowned position in consumer minds. We have also tried our level best to exercise our
perceptions to provide recommendation to their concepts and to modify their strategies
for better planning of the company

Corporate Governance report 2003

Nestlé Management report 2003
Nestlé Sustainability Review
Nestlé People Development Review
Corporate Business Principles
Nestlé principles of Marketing
Nestle – Hundred and Twenty-Five Years (1866-1991) by Jean Heer
Million Years of the Food Industry
Henri Nestlé
10. The World Food Company

11. The Nestle Management and Leadership Principles

12. Nestle Policy on the Environment