Marketing Strategy of NESCAF Alegria 510

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 Internship Report
On
Marketing Strategy of NESCAF Alegria 510

Submitted To
Dr. K. M. Salah Uddin
Associate Professor
Dept. of MIS
University of Dhaka

Submitted By
Md. Rafiqul Islam
ID: 08-052
Dept. of MIS
University of Dhaka

Date of Submission:

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Letter of Submission

Date:

Dr. K. M. Salah Uddin

Associate Professor
Dept. of MIS
University of Dhaka

Subject: Submission of Internship Report

Dear Sir,

It is my great pleasure to submit the internship report titled Marketing Strategy of NESCAF
Alegria 510 which has been prepared as an integrated part of the course requirement of my
BBA program. My internship was held at Nestl Professional function of Nestl Bangladesh
Limited.

It will be highly appreciated if you kindly accept the report. Your positive action regarding this
matter would be very much helpful for my academic career. If you need any further clarification
or information in interpreting this analysis, I will be glad to answer your queries.

Sincerely yours,

Md. Rafiqul Islam

ID: 08-052
Dept. of MIS
University of Dhaka

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Declaration

I do hereby declare that the internship report on Marketing Strategy of NESCAF Alegria
510 has been prepared by me under the guidance of Mr. Debashis Barua, Officer-Nestl
Professional, Nestl Bangladesh for the fulfillment of BBA program from the department Dept.
of MIS, University of Dhaka.

I further affirm that the work is original and no part or whole of the report has been submitted by
any other students for the completion of BBA or other degree.

Md. Rafiqul Islam

ID: 08-052
Dept. of MIS
University of Dhaka

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Acknowledgement

At first, I would like to express my deep gratitude to Almighty Allah, the supreme authority of
the universe. It is my greatest pleasure to get the opportunity to complete my internship from
Nestl Bangladesh Limited. I think my experience at Nestl will provide me with lots of
practical knowledge regarding the FMCG industry.

Now I would like to thank my academic supervisor Dr. K. M. Salah Uddin, for his untiring
guidance, help, effort, and suggestion. Without his direct guidance this report couldnt be
possible. A forbearing personality, Dr. K. M. Salah Uddin, constantly inspired me to make the
report better and share his knowledge with me. I shall remain ever grateful to him for his
extraordinary gesture and relentless effort.

I would like to thank Mohammad Masum Uddin Khan, (Country Business Manager, Nestl
Professional, Nestl Bangladesh Ltd) for his strong believe in me with all his experiences. I am
also thankful to my organizational supervisor Mr. Debashis Barua, Officer-Nestl Professional.
Without his direct help, suggestion, and assistance it would be impossible for me to complete
this report. I was fully supported by the Nestl Professional team members to prepare this report
and I am indebted to them. They very patiently taught me a lot of things that will help me in my
future career and treated me as one of them and I am indebted to them for their support.

I would also like to thank the authority of Nestl Bangladesh Limited for giving me the
opportunity to work in such wonderful working environment.

.
Md. Rafiqul Islam
ID: 08-052
Dept. of MIS
University of Dhaka

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v
 EXECUTIVE SUMMARY

The organization to be studied for internship reports in Nestl Bangladesh Limited. In

Bangladesh, Nestl has started its journey in 1994 in Bangladesh. I was appointed in Nestl
Professional function of Nestl Bangladesh Limited as an intern. I got the opportunity to acquire
a closer understanding to the sales and distribution process of Nestl Professional function.
Nestl Professional is one of three sales wings of Nestl Bangladesh Limited. This function
focus on out of home consumption but Sales and Nutrition function focus on in home
consumption. Contribution of Nestl Professional is increasing day by day.
Project 'Step Up' of Nestl Professional in Bangladesh includes out of home consumption
solution. So we have Demand Generation Team to maintain aggressive selling and customer
service of NESCAF Alegria 510 machine. This is a whole new concept of coffee for our
country which gives an ultimate international experience for the coffee lovers with the brand
name of NESCAF. The main purpose of this project is to fulfill the thirst of genuine coffee
lovers. Step Up mainly focuses on the premium customers. This easy-to-use countertop coffee
machine delivers authentic, quality caf-style beverages at an affordable price. Its compact
design and simple technology make it suitable for any location-just press the button to enjoy one
of the five delicious beverages. Brewing one beverage at a time ensures the freshness of every
cup. The Alegria 510 product starts with Nestl quality coffee beans and is further enhanced with
finely ground roasted coffee called micro-grinds (4%). These coffee grind morsels ensure a
coffee that is rich, aromatic, and full of flavor.
DG (demand generator) team members along with interns visit the market to find out the
potential customers and then they approach the customers to sell the machine. Lifetime servicing
and 1 year replacement system makes it more attractive.
Besides different branding policies like POP materials, activation programs and campaigns took
place in this short time run of project 'Step Up'. Currently this project is working on online
branding through Daraz.com. Also collaboration with different banks and renowned companies
made this project acceptable to the higher end customers.

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1.Introduction

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1.1 Origin of the report

Proper synchronization of theory and practice is of great significance in the perspective of recent
business environment. Academic courses get more value when there is opportunity to apply
gathered knowledge practically. As an essential part of BBA program, Department of
Management Information Systems, University of Dhaka, all the students have to undertake an
internship program of 60 day duration in any organization with a view to attaining realworld
knowledge. Theoretical Knowledge is not sufficient for a business student. There is a gap
between the theoretical knowledge and practical knowledge. Our internship program has been
launched mainly to bridge the gap. Under this program the students are required to write report
based on observation and experiences during the course of work. As per the instruction of
internship supervisor, this report is prepared on Analysis of sales and distribution of Nestl
Professional. This study is attempted to identify sales and distribution related activities of
Nestl Professional A function of Nestl Bangladesh Limited. As an essential part of the
internship of the MBA program, this study has been conducted and

The report titled, Marketing Strategy of NESCAF Alegria 510 is being assigned by my
supervisor for the completion of the course, and she has approved my preferred topic for the
report. I have collected all the required information from the relevant source. I have tried my best
to combine and relate the information with the concept of the report, but due to time limitation
and restricted access to information there still remains some limitations.

1.2 Objective of the study

One of the important activities that any FMCG(Fast-moving consumer goods) should do in a
proficient way is Sales and Distribution management. Distribution is the method by which the
final goods reach to the ultimate customers. The main objective of the internship report is:
To describe the Opportunity that a very new product have A function of Nestl
Bangladesh Limited.
To know about the company profile.

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 To find out the problems and the possible solutions of the new product of Nestl
Professional.
To identify the procedures through which marketing strategy will be conducted to make a
structure business.

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1.3 Research Methodology

Information required for this study is gathered from different sources by using a specific
methodology. Practical knowledge is also reflected on this report.

1.3.1 Primary data sources

Face-to-face conversation with the Country Business Manager, Manager, Officer,

Distributor, and Direct Sales Representative.

Practical field work.

Observation of the work processes.

1.3.2 Secondary Sources

The meaning of secondary data is available data. To obtain the secondary data a number of
sources are used that are as follows:
Internal and External publication of Nestl Bangladesh Limited.

Books, newspapers and magazines.

Collection of information from internet.

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1.4 Limitation of the study

Every process usually carries limitations with it. This study is not an exception. The limitations
on making this internship report are stated below.
Data accessibility is another big issue here because due to company policy it is not
possible to disclose confidential information regarding their managerial strategies and
plans.

This report is prepared based on Nestl Professional function. So it may not provide the
overall scenario of Retail Sales and Nutrition function of Nestl Bangladesh Limited.

Time limitation is a big factor. The report has been completed along with regular office
work.

There was short of time. It is tough to understand the overall strategy of Nestl
Professional in three months.

Therefore, getting the exact picture is always a challenging task.

Even though there were some limitations. Best effort was given to collect adequate data and
information to make the report meaningful.

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 2.Company Background
Nestl is a Swiss multinational food and Beverage Company headquartered in Vevey,
Switzerland. It is the largest food company in the world measured by revenues and ranked 72 on
the Fortune Global 500 in 2014. Nestl has a primary listing on the SIX Swiss Exchange and is a
constituent of the Swiss Market Index. It has a secondary listing on Euro next. In 2011, Nestl
was listed No. 1 in the Fortune Global 500 as the worlds most profitable corporation. With a
market capitalization of US$233 billion, Nestl ranked No. 9 in the FT Global 500 2013 In the
food industry Nestl is the most trusted name with high quality products. Good food Good
Life is the mission of Nestl, which drives the company to provide consumers with the best
tasting and most nutritious choices in a wide range of food and beverage categories and eating
occasions, from morning to night. The vision of creating shared value and the very own
Corporate Business Principles shaped the company culture and made them a reliable
investor over 86 countries of the world. Today Nestl employs around 280000 people and have

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factories or operations in almost every country of the world with a total equity of CHF 62.60
billion.

2.1.1 History of Nestl

Nestls origins date back to 1866, when two separate Swiss enterprises were founded
that would later form the core of Nestl. In the succeeding decades, the two competing
enterprises aggressively expanded their businesses throughout Europe and the United States. In
August 1867, Charles (US consul in Switzerland) and George Page, two brothers from Lee
County, Illinois, USA, established the Anglo-Swiss Condensed Milk Company in Cham,
Switzerland. Their first British operation was opened at Chippenham, Wiltshire, in 1873. 11 In
September 1866, in Vevey, Henri Nestl developed a milkbased baby food, and soon began
marketing it. The following year saw Daniel Peter begin seven years of work perfecting his
invention, the milk chocolate manufacturing process. Nestls was the crucial cooperation that
Peter needed to solve the problem of removing all the water from the milk added to his chocolate
and thus preventing the product from developing mildew. Henri Nestl retired in 1875 but the
company, under new ownership, retained his name as Socit Farine Lacte Henri Nestl. Global
Brands of Nestl Nestl with headquarters in Vevey, Switzerland is the worlds leading
nutrition, health and wellness company. The Nestl story began when the company became
known with the first milk based foods for babies. Today Nestl is the worlds largest food
company, employing around 276,000 people at 481 factories in 87 Countries and operating in
almost every country in the world. Nestl has divided its worldwide operations into three zones:
Europe: Adriatic, Benelux, Iberian and Russia Americas: AustralAmerica, Bolivarian,
Caribbean and Central American AOA: Asia, Africa and Oceania

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 2.1.1 Nestl History
The history of Nestl started from as early as 1866. The separate
companies from Switzerland formed the ancient company that became
todays Nestl. The first venture was named Anglo-Swiss Condensed
Milk established in 1867 in Cham, Switzerland by Charles, who was
the then US consul in Switzerland and his brother named George
Peter. In the next decades they expanded their business rigorously
Figure: Henri Nestl throughout Europe and the United States. The other venture started
concurrently in 1866 by Henri Nestl in Vevey, Switzerland; a milk-based baby food
company. Later they merged together and formed the largest food and beverage
company- todays Nestl. Henri Nestl retired in 1875 but the company, under new
ownership, retained his name as Socit Farine Lacte Henri Nestl.

2.2 Product of Nestl global

Nestl has more than 5,000 brands, with a wide range of products across a number of
markets, including coffee, bottled water, milkshakes and other beverages, breakfast
cereals, infant foods, performance and healthcare nutrition, seasonings, soups and
sauces, frozen and refrigerated foods, and pet food.

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 Table 1 Category wise product's brand of Nestl

Category Brands
BabyNes, DolceGusto, Nescaf Alegria, Nescaf Barista,
Appliances
Nespresso, Special.T
Cerelac, Gerber Graduates, Mucilon, NaturNes, Nestum,
Baby Nutrition
Nidal, Nido
Baking Libby's Pumpkin Toll House
Arrowhead, Buxton Comtrex ,Deer Park, Hpar Ice,
Bottled water Mountain OzarkaPanna, Perrier Poland, Spring, Pure Life,
Quzac, San Pellegrino, Vittel Zephyrhills
Cheerios, Chocapic Chokella, Cini Minis, Clusters Cocoa,
Crisp Cookie, Crisp Corn Flakes, Country Corn Flakes,
Cereals
Curiously Cinnamon Fitness, Fitness Fibra Gold Flakes,
Golden Grahams, Golden Nuggets, Honey Gold Honey
Blue Riband, Breakaway Butterfinger, CaillerCaramac,
Chocolate and Carlos V Chico, babies Choclait Chips, Choco Crossies,
desserts Chocolate Log Chokito, Chunky Club, Coffee Crisp, Crisp
Crunch, Die Weisse, Drifter Golden Rough Goobers
Abuelita, BabyNes, Carnation Caro, Chuckie (beverage),
Coffee-Mate, Dolce Gusto, Juicy Juice, Klim La Lechera,
Coffee and Lion Menier, Milo, Nescaf, Nescau, Nesfruta, Nespresso,
beverages Nesquik (mix), Nesquik, Ready-To-Drink Nestea, Nestl
Chocolate, Nestl Dessert ,Ovaltine, RicorSjora, Sublime
Sweet Leaf

Health and Nutramen, Junior Nutrament, PamlabPeptamen, Boost

nutrition Resource

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2.3 Nestl Bangladesh
Nestl Bangladesh Limited started its commercial operation in Bangladesh in 1994.
Its total authorized capital is TK1.5 billion and total paid up capital is TK 1.1 billion.
The only factory of the company in Bangladesh is situated at Sreepur, 55 km north of
Dhaka. The factory produces the instant noodles and cereals and repacks milks, soups,
beverages and infant nutrition products. Today Nestl Bangladesh Ltd. is a strongly
positioned organization. The company is continuously growing through the policy of
constant innovation, concentrating on its core competencies and its commitment to
high quality food to the people of Bangladesh Since the beginning of Nestls
operation in
Bangladesh, the chairman of the company has been Mr. Latifur Rahman, one of the
top industrialists of the country, his firm Transcom used to import the products of
Nestl. His business house Transcom is still involved in wide range of business like
beverage, pharmaceutical, electronics, newspaper, tea export, fast food franchises etc.
Still he remains as an honorary chairman of the company although his group
Transcom does not capture any share today as Nestl S.A. holds 100% share of this
company.

2.3.1 Nestl Bangladesh at a glance

Type of business:

Fast Moving Food and Beverage Company with local manufacturing facilities,

Reporting to regional business groups for innovation and business results.

Operations:

Foods and Beverages

Constitution:

Fully owned subsidiary of Nestl S.A.

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Product categories:

Nutrition, Culinary, Dairy, Beverages, Breakfast cereals, confectionaries

Manufacturing Facilities:

The Company has a Manufacturing and Packaging Factory situated at Sreepur, 55 km

north of Dhaka. The factory produces instant noodles, cereals and repacks: milk,
soups, beverages and infant nutrition products.

Employees:

Nestl Bangladesh provides employment to over 10,000 people directly and through
its dedicated suppliers, distributors and service providers. 99.5% of NBL employees
are locals and they have equal number of Bangladeshis working abroad in other
Nestl companies as expatriates.

2.3.2 Mission
Nestl is the most trusted name with high quality products. Good food Good Life
is the mission of Nestl, which drives the company to provide consumers with the
best tasting and most nutritious choices in a wide range of food and beverage
categories and eating occasions.

2.3.3 Vision
The vision of creating shared value a company for every moment of everyday from
Day- Night, Birth- Old age.

2.3.4 Goals

Sustaining as a worlds leading Nutrition, Health and Wellness Company. To

manufacture high-standard products. Reaching consumers through ensuring
cost efficiency. Promoting Safety is by choice. Producing large volume to
achieve production cost economies. Enabling quality products to be sold out at
obtainable prices. Enhancing the awareness among people about using water
resources.

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3.3.5 Customers of Nestl Bangladesh Limited
Nestl Bangladesh Limited markets its products throughout the country with the
help of the Distributors. A part from that, Nestl Professional is a separate
function which is responsible for the institutional sale. There are currently 104
distributors of Nestl Bangladesh products of which 76 are retail distributors and
remaining 18 are Nestl
Professionals distributors providing products for the out of home consumptions.
The whole country is divided into six regions:

Dhaka North
Dhaka South
Chittagong
Sylhet
Bogra
Khulna

The retail distributors supply Nestl products to four types of outlet, while Nestl
Professional Distributors supply products to different institutions.

Retail Shop

Modern Trade
Retail Distributor
Nestl Bangladesh Tea Bunk
Limited
Nestl Professional
Wholesale

Figure 3 Customers of Nestl Bangladesh

Source: Nestl Bangladesh Internal Portal

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