GROUP NO-4

1. Shahedul Islam 20-42081-1

2. Mahbuba Husnat Medha 20-42220-1
3. Ashrafur Rahman Rifat 20-42098-1
4. Moumeta Khan 19-41597-3
5. Abesh Banik 20-42279-1

Nestle is one of the world biggest food and bevarage company which was found in1867 in
Switzerland. They have many kind of products with better quality such as chocolates, coffee,
cereals, frozen food and cosmetics etc. The main vision of Nestle is to make good quality
products to make consumers happy and healthy everywhere in the world.

Stp of Nestle: (Segmentation, Targeting, Positioning) 

Segmentation : There are different kind of products are according to type of weather (cold,
warm, hot)  type of gender, age, income, education, type of people's knowledge, awareness,
attitude of an consumer. They do this by choosing, analyzing the area, weather for their product.
For example : Nestle never offers same product for different age groups. Here it offers Milo for
children and coffee for adults. 

Targeting: targeting is like as selection now we have got our customers by segmentation so we
will target them to success. They differentiated marketing like different segments on basis of
age, occupation, seasons, climate, gender etc. For example : Nescafe 3 in 1 for people who are
busy with their works, koko krunch for those who want to taste real chocolate. Nestle has gained
a strong market value because of their good knowledge of their customers. They specialized in
making baby foods.

Positioning: By creating varieties of products, services, channel and image with loyalty Nestle
arrives the consumer touch point more easily, effectively and efficiently in comparing with other
competitors in market. They reached here because they have many products for target
customers, experienced market salesman and transportation, large number of manpower
( highly educated and trained),  marketing and public department find out the new needs and
response about their products.

BCG Matrix

BCG Matrix is known as the growth-share matrix is used by organizations to classify their
business units or products into 4 different categories: Dogs, Stars, Cash Cows and Question
Mark.
CASH COWS: Cash cows are the products that have a high market share in a market that has
low growth.  For Nestle, there is one product that has undoubtedly been the Cash Cow and
its Nestle’s Maggi Noddles.With a market share of 80-85 %, Maggi Noddles holds a very
strong hold in the market and have high customer loyalty. The product requires very less
investment to maintain its market share and fight off any competition.

STARS: The products or business units that have a high market share in high growth industry
are the stars of the organization. In the case of Nestle, Nestle’s Mineral Water and Nestle’s
Nescafe Coffee fall in the Star category of the BCG Matrix of Nestle. Growing healthier lifestyle
trends and emerging markets have prompted the brand to invest large amounts of investments
in order to differentiate the bottled water brands from competitors in mature markets and grow
brand awareness in emerging markets.

QUESTION MARK: There are products that formulate a part of the industry that is still in the
phase of development, yet the organization has not been able to create a significant position in
that industry. The small market share obtained by the organization makes the future outlook for
the product uncertain, therefore investing in such domains is seen as a high-risk decision.With
increasing competition and growing need to consume healthy products among consumers,
Nestlé’s Milk products and Nutrition requires significant investment from the brand to
maintain and grow its market share. Nestlé’s Chocolates and confectionaries is another
business unit that can be placed in the Question Mark quadrant of the BCG Matrix of Nestle.
High competition and small market share of the product in the industry is what makes it place in
this quadrant.

DOGS: Dogs are those products that were perceived to have the potential to grow but however
failed to create magic due to the slow market growth. Failure to deliver the expected results
makes the product a source of loss for the organization, propelling the management to withdraw
future investment in the venture. Since the product is not expected to bring in any significant
capital, future investment is seen as a wastage of company resources, which could be invested
in a Question mark or Star category instead. Nestlé’s Milo was launched as chocolate and
malt powder for Milk and water, however, the product failed to create any significant impact
on the business and is placed in the Dog Quadrant of BCG Matrix of Nestle

The marketing mix

The marketing mix refers to the set of actions or tactics that a company uses to promote its
brand or product in the market. Nestle analyses the 4p's of the marketing mix. The 4p's are -
Product, Price, Place and Promotion. 

1) Product: Nestle offers  different kinds of products to different countries. The products Nestle
offers are -
i. Dairy Products: Nestle milk, Nestle Slim and Nestle every day.
ii. Chocolates and confectioneries: Kitkat, Munch, Polo,  Milky bar, Crunch  etc.     
iii. Coffee : Nescafe, Nescafe Dolce, Gusto, Nespresso etc.
iv. Ready to cook or culinary, chilled and frozen foods: Maggi, jacks, Herta etc.

2)Price:
Nestle uses its pricing strategies differently in its products. Competitive pricing is for the majority
of the products like Maggi, kitkat etc.and they are offered at a competitive price in the market. 
 
And skimming pricing is for the products like Nestle A+ slim, Nestle A+ toned etc. It means
these products price is higher than their competitors as these are for some specific people who
are health conscious. 

3)Place: Nestle products are available all over the world and it has huge customer base.It
confirms the availability of the products in both urban and rural areas.That's how it has become
a worldwide successful company. Nestle also uses online channels through partnering with
different online partners to reach out to the customers.

4)Promotion: Promotion palys an important role in the marketing mix.Nestle uses  digital
channels to promote their products. They  aslo use tv ads, billboarding, online ads etc to
promote. Sometimes they arrange for some campaign and competitions so that people get to
know more about their product.

Due to the advancement in the consumer food products has brought a great changes in their
food habits, nestle has maintained its loyalty all the time by its quality products and remained at
top position in the market by its quality products and experienced and excellent service.

THANK YOU
.