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Sample Marketing Plan on Maggi Ketchup
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CHAPTER – 1
INTRODUCTION
1.1. BACKGROUND OF THE STUDY:
Nestlé Bangladesh Limited is a leading Food company with lots of global strategic brands
operating in Bangladesh. MAGGI is one of the strategic brands of Nestlé Bangladesh
Limited. Worldwide MAGGI brand is used for Nestlé's Soup, Noodles, Seasonings, Recipe
Mixes and Sauces.
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, Nestlé 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, Nestlé 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 and making a five years marketing plan.
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.
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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.
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CHAPTER-2
ORGANIZATIONAL OVERVIEW
2.1. COMPANY BACKGROUND:
Nestle is the world’s 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 world’s best selling
chocolate bar, with 418 Kit Kat fingers eaten every second around the world.
2.2. HISTORICAL BACKGROUND:
Nestlé is an international company with its headquarters in Vevey, Switzerland. In 1867
Henri Nestlé, 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 Nestlé “(Nestlé Milk Food).
In order to expand into a broader product category and meet more people’s needs, the Nestlé
Company’s first diversification occurred in 1905 when it merged with the Anglo- Swiss
Condensed Milk Company (est.1866). Today, processing milk food is still the company’s
chief activity together with the other products of Nestlé family such as chocolates, instant
milk-based drinks, culinary products, frozen foods, ice cream, dairy products and infant
foods.
Nestlé 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 company’s initiative and bold
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activity, it has grown into a large organization, employing almost 230,000 people in nearly
500 factories worldwide. Nestlé products are now widely distributed on all continents and
sold in more than 100 countries.
2.3 NESTLÉ 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 Bangladesh’s 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 NESTLÉ BANGLADESH LIMITED:
Popular Nestlé 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,
Nestlé World Trade Corporation, the trading wing of Nestlé S.A., sent regular dispatches of
Nestlé 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 Nestlé products in
Bangladesh. In 1992 Nestlé S.A. and Transcom Ltd. acquired the entire share capital of Vita
Rich Foods Ltd. Nestlé S. A. took 60 percent while Transcom Ltd. acquired 40 percent.
The name of the company was also changed at this time to Nestlé Bangladesh Limited. In
1998 Nestlé S.A. took over the remaining 40 percent share from Transcom Limited.Today
Nestlé 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.
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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 arg et Market
30% F amilies
70% R es turant
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3.2.2 Target Market Forecast:
Potential Customers Growth 2008 2009 2010 2011 2012
Families 25% 25000 31250 39062 48828 61035
Restaurants 15% 1500 1725 1983 2281 2625
Total 24.5% 26500 32975 41045 51109 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.
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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.
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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 1.3 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 ingredients which
make 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.
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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.
Table2.1 MAGGI Ketchup’s Strength, Weakness, Opportunity and Threats.
Strengths Weakness:
• Higher Brand image • Unimpressive packaging
• Attractive trade promotion • Higher pricing than local brands
• Quality and Taste
Opportunity Threats
• Developing foodservice industry • Increased competition
• Improvement of product & • Modest economy
packaging quality • Downward pressure on pricing
• Decreased operations cost
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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.
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.
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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 Nestlé, 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 company’s targeted consumer and price
Brand Pack Size Price Mkt. Share Targeted Consumer
Pran 340 40 20.0% Middle and upper- income household& also
restaurants
Best 340 49 19.3% Middle and upper income households &
foodservice area
Ahmed 340 40 13.4% Middle-income household
Druk 400 63 11.6% Upper income households& foodservice area
Roza 300 45 7.0% Households & Restaurants
Meridian 285 46 4.7% Middle-income household
BD 340 50 3.5% Middle and upper- income household
Heinz 300 49 2.6% Upper income households& foodservice area
Others Avg. 320 Avg.45 17.9% Household & foodservice area
100.00%
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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.
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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 company’s 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.
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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:
Manufacturer Distributor Retailer Final consumer
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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 (30-
45).
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 company’s 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& Target Benefits Price Value
Product Consumers Proposition
Nestlé(Maggi) Quality conscious More At an affordable Tastier, spicy
consumers of preservation price for the ketchup from the
(Ketchup)
ketchup ability and tasty middle class and pure ingredients at a
upper class moderate price.
families.
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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 tasty 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 intensive distribution to have our product sold through well-
known 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
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also coordinate public relations efforts to build the Maggi brand and support the
differentiation message. 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 customer’s 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 consumer’s 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 6,650,000 in
the next year.
• Within 5 years, we want to produce an amount of profit 3.2 million based on per unit
price of BDT 38(wholesale price)
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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.
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CHAPTER-5
FINANCIAL ASPECTS
5.1 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:
5.2 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 11.4 19 27.5 38 (million)
Table. 5.1 Break-even Analysis
Break-even Analysis:
Break-even Units 500,000
Break-even Revenue 19000000
Assumptions:
Per-Unit Revenue 38.00
Per-Unit Variable Cost 30.00
Fixed Cost 4,000,000
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5.3 SALES FORECAST:
We feel that the sales forecasts group customers into two categories: families and
restaurants. So, both types of customers will lead us to differently forecast of our sales
volume:
Table.5.2 Yearly Sales Forecast
Sales Forecast
Sales 2008 2009 2010 2011 2012
BDT BDT BDT BDT BDT
Families
3325000 4655000 5320000 5985000 7315000
BDT BDT BDT BDT BDT
Restaurants
1425000 1995000 2280000 2565000 3135000
BDT BDT BDT BDT BDT
Total Sales
4750000 6650000 7600000 8550000 10450000
Cost of Sales 2008 2009 2010 2011 2012
BDT BDT BDT BDT BDT
Families
1837500 2572500 2940000 3307500 4042500
BDT BDT BDT BDT
Restaurants BDT 787500
1102500 1260000 1417500 1732500
BDT BDT BDT BDT BDT
Total Sales
2625000 3675000 4200000 4725000 5775000
5.4 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.
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Table.5.3 Yearly Expense Budget
Marketing Expense Budget
2008 2009 2010 2011 2012
BDT BDT BDT BDT BDT
Personal selling
100000 144500 165000 185000 227500
BDT BDT BDT BDT BDT
Advertising
600000 867000 990000 1110000 1365000
BDT BDT BDT BDT BDT
Sales promotion
300000 433500 495000 555000 682500
Total Marketing BDT BDT BDT BDT BDT
Expenses 1000000 1445000 1650000 1850000 2275000
Percent of Sales 26.67% 27.50% 27.5% 27.4% 27.6%
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CHAPTER-6
CONTROLS
6.1 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
6.2 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:
2008: We have a plan to initiate a 300000tk 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 10000units will be used
for this purpose. Then advertising programs through the various mass Medias⎯radio, print,
internet etc⎯ will be performed to acknowledge people about the product.
2009: We have a target to gain at least the sales revenue of 6650000 tk in this year
projected. By this revenue, we can cover partially the losses of the previous year. To reach
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the break-even point next year we have to build the platform. We expect that people are fully
aware of our product now.
2010: 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 19000000 tk of total sales revenue,
while the sales promotion will be accelerated with respect to the market demand.
2011: 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.
2012: 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.
.
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6.3 MARKETING ORGANIZATION:
The chief marketing officer of Maggi, Nestlé Bangladesh Limited is responsible for overall
marketing strategy, direction and implementing it. We have hired the country’s 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.
6.4 CONTINGENCY PLANNING:
Every business has some risks and difficulties. Similarly, our product may face some risks
and difficulties.
6.4.1 Difficulties and Risks:
• Pran possesses the major parts of the market. As a new product, we may have to
suffer if we cannot persuade the consumers.
• It is risky in the first year to make every consumer believed that ours’ is the best tasty
and quality product.
• From the business view point, the restaurants may not be eager to use new product as
they trust the common ones.
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6.4.2The 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.
6.5 The Marketing Program:
Maggi ketchup will use direct selling as the marketing arm to sell its products.
6.5.1 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.
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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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