Unilever Bangladesh
Essay Preview: Unilever Bangladesh
Report this essay
Executive Summary
Our project was aimed at studying the marketing mix of products marketed by Nestlé there by understanding the concept of 4Ps better. It details how Nestle has marketed its products. Nestlé has divided its product portfolio into four different segments, namely-
Milk Products and Nutrition,
Chocolates and Confectionery,
Beverages, and
Maggi (noodles, soups and ketchups).
Separate marketing mixes have been developed for these four different segments. The pricing, promotion techniques used and place of marketing and of course the product of one segment are very different from products of another segment.
Apart from the secondary research from newspapers, journals and the inter-net, we have interacted with some officials concerned with these things, present at Nestlé Bangladesh. All this has helped us in our extensive study of the marketing mix of various Nestlé products.
1. Company profile:
Nestlé is the worlds largest food company involved in nearly every field of nutrition, with a turnover of 88 billion Swiss Francs. its headquarters is in Vevey, Switzerland.
Its sales in 2006 was CHF 98.5 billion. Its organic growth in 2006 was 6.2% whereas real internal growth was 4.7%. Until half yearly closing its organic growth in 2007 was 7.2% whereas real internal growth was 5.3%. It became worlds largest food company in 2006 followed by PepsiCo, Kraft Foods, Unilever, Coca-cola and others.
2005
Sales
98458
91115
13302
11876
Net Profit
8081
Organic Growth
6.2%
RealInternal Growth
4.2%
Jan.-June 2007
Jan.-June 2006
Sales
51114
47158
6060
Net Profit
4151
Organic Growth
RealInternal Growth
Figure 1: Sales chart of leading multinationals of the world in 2006
It is largest not only in terms of its sales but also in terms of its product range and its geographical presence. Its product range includes infant formula, milk products, chocolate and confectionery, instant coffee, ice-cream, culinary products, frozen ready-made meals, mineral water etc. Nestlé is also major producer of pet food. Nestle is currently operating in 87 countries with 100 operating companies and 468 factories with total 265000 employees worldwide. It has over 6000 brands and total 10000 products. Among them some are global brands, some are regional and some are local brands.
Most popular brands of Nestlé 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.
2.1. Historical Background of the company:
In 1867 Henri NestlĂ©, 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 NestlĂ© “(NestlĂ© Milk Food).
In order to expand into a broader product category and meet more peoples needs, the Nestlé Companys first diversification occurred in 1905 when it merged with the Anglo- Swiss Condensed Milk Company (est.1866). Still today, processing milk food is still the companys chief activity together with the other products
2.2. Historical development:
1866-1904
Companys foundation
1905-1918
Merger between Nestlé and Anglo-Swiss Condensed Milk Company
1918-1938
In 1920s Nestlés first expansion into new products with chocolate,the Companys second most important activity.
In 1929, Nestlé and Peter-Cailler-Kohler Chocolats Suisses S.A merged.
1938-1944 The introduction of the Companys newest product, Nescafe.
1944-1975
In 1947 came the merger with Maggi seasonings and soups. Crosse & Blackwell followed in 1950, as did Findus (1963), Libbys (1971) and Stouffers (1973). Diversification came with a shareholding in LOreal in 1974.
1975-1981
Nestlé made its second venture outside the food industry by acquiring Alcon Laboratories Inc.
1981-1996
In 1984, Nestlés improved bottom line allowed the Company to launch a new round of acquisitions, the most important being American food giant Carnation. In 1988, Nestlé acquired Buitoni-Perugina (Italy) and Rowntree (GB). In 1992, Nestlé acquired Perrier (France). In 1995, Nestlé acquired Victor Schmidt & Sohne, Austrias oldest producer of confectionery, including the famous Mozartkugeln.
1996–2007
Since 1996 there have been acquisitions including San Pellegrino (1997), Spillers Pet foods (1998), Power Bar (2000) and Ralston Purina (2002). There were two major acquisitions in North America, both in 2002: in July, Nestlé merged its U.S. ice cream business into Dreyers, and in August, a USD 2.6bn acquisition was announced of Chef America, Inc. In 1999, Nestlé also took the decision to divest the Findus brand in order to concentrate on high added-value frozen food products. In 1998, Nestle launched Nestle Pure Life bottled water and in 200 it lunched Nestle Aquarel. In 2006 Nestle made acquisition of Uncle Tobys, Jenny Craigs and Novartis Medical Nutrition. And last in 2007, it made acquisition of Gerber (Baby Food).
3. Market offerings:
Nestle fulfilled global consumers