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Case Study Of Nido Full Cream Milk Powder

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.
Nestlé Bangladesh Limited is a wholly owned subsidiary of Nestlé S.A. Switzerland. In Bangladesh, Nestlé imports pure coffee, confectionery; repacks infant nutrition, full cream milk powder and manufactures culinary products. The popular brands in Bangladesh are Nescafé, Kit Kat, Polo, Cerelac, Lactogen, Maggi and NIDO in these categories. The factory of Nestlé is located in Sripur, about 55 kilometers from capital city Dhaka. Nestlé Bangladesh Ltd. has a vision of becoming the number one Food and Beverage Company in the country.

2.2 History of Nestle
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 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.

By the time Henri was born, five of his brothers and sisters were already in their graves. As a result Nestle made it his life’s work to fight with the high infant mortality of the times leading to his invention of infant cereal. Nestlé’s interest in baby food was decades away. The children did not actually die in infancy. They were victims less of malnutrition or gastrointestinal infections than of contagious diseases such as diphtheria, scarlet fever, measles, and whooping cough. Moreover, when he made his invention Nestle was not looking for a cure but trying to improve the state of infant nutrition.

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.

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

Research is a key part of our heritage at Nestlé and an essential element our future. We know there is still much to discover about health, wellness and the role of food in our lives, and we continue to search for answers to bring consumers Good Food for Good Life.
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Vision of Nestle in Bangladesh
Vision—what we want to be
“To be the very best Food, Beverage and Nutrition Company in Bangladesh”
We will not rest until our consumers, our customers, our suppliers, our shareholders and our employees judge our company to be the very best. Nestle 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 benefit of shareholders and employees. Today Nestlé Bangladesh Ltd. is a strongly positioned organization. The Company will continue to grow through our policy of constant innovation and renovation, concentrating on our core competencies and our commitment to high quality, with the aim of providing the best quality food to the people of Bangladesh.

Quality is an essential ingredient in all the Nestlé brands and also Nestlé brands maintain
nutritional balance in a fast pace world, that is why people around the globe choose. The detail of the
Nestlé brand is as follows:

ORGANOGRAM:

The brand NIDO was first launched as a whole milk powder in Switzerland in 1944, and was progressively introduced in other countries thereafter Czechoslovakia 1947, Panama 1948, Egypt 1951, Mexico 1951, Morocco 1953, and Lebanon 1959 etc. Other brands of similar milk powders were introduced in some markets at around the same time-like Nespray (Great Britain 1948, Malaysia 1950, South Africa 1958), NINHO (Brazil 1965), NEST (Germany 1948) and SUNSHINE (Australia 1939).
In terms of usage and positioning, these products have followed an evolution path from all purpose whole milk powders to nutritious full cream milk powders for all family consumption to the current positioning of NIDO as a milk brand for nutrition of pre-school and school-age children. The introduction of age segmented growing Up Milks under the NIDO/NESPRAY/NINHO range of brands has further strengthened this evolution of brand positioning and usage, and should ensure its future evolution as a milk brand for the nutrition of children.

Core Values of NIDO
NIDO Means:

Innovation and renovation: Continuously revitalize their brands and products. Prioritize and launch successful new products that drive consumer needs. Achieve a 60/40+ quality advantage while making their products affordable to as many consumers as possible. Base all their marketing decisions on superior and actionable consumer insights.

Consumer communication: Improve the quality and quantity of our consumer communication investments to drive consumer demand and to increase awareness of our brands in the most cost effective way.

Product availability: Whenever, Wherever, However. Ensure that their brands and products have the widest and cost effective distribution possible.

Low cost, highly efficient operations: 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.

2.10 IMC planning and execution
The most flexible element of the marketing mix, Marketing Communications is the means by which companies attempt to inform, persuade, and remind consumers directly or indirectly about the brands. Below is the outline of all the commonly used marketing communication options:
Media Advertising:

2.11 Media Advertising

TVC:
When it comes to TVC advertising, certain advertising tools such as TRP and GRP are use to select specific programs. For example, since the GRP is high for TV programs such as popular drama, and evening news, NIDO ads are aired during these programs. In terms of frequency, NIDO ads will be aired in all 12 months in 2006 and were aired in 9 months in the previous air.

Newspaper:
Two things are considered in selecting specific newspapers for NIDO ad-circulation and a subjective evaluation of which type of newspapers, specific NIDO target audience might read. In the last couple of year’s newspapers like “Prothom Alo”, “The Daily Star”, “Jonokontho” and “Jugantor” have received the most NIDO ads. In the case of magazines, the most widely ones used for NIDO ads include “Shaptahik 2000” and “Annodin”. However, in terms of frequency, print ads are used less frequently than compared to that of TVC’s. The reason is that print ads have less reach and ad/message recall among target audience. So print ads have only been used when there has been a requirement to communicate detail nutritional information and facts on NIDO and how it scientifically helps children grow.
2.12 Place Advertising
Place advertising has the objectives of increasing brand visibility and TOM awareness. However, less focus is given on this aspect since NIDO awareness among potential target market is quite high. Therefore, little is invested in this area. As of now, there is only one NIDO billboard, which located in the capital city. In total, there are 28 NIDO shop signs located around the country.

2.13 Point-of-sales Advertising:
POP advertising campaigns are carried out on numerous occasions through out the year. POP campaign acts as supporting advertisement when there is any new product launched and when there are any trade promotions. During trade promotions, retailers tend to stock up more than usual quantity of products and hence the POP materials are used to assist the product off-take from the retail shelves. POP materials are also used during trade display contests. The contents invites retailers to accumulate points on the number of product purchase, placement on shelf and proper and creative use of POP materials such as trade posters, shelf-talkers, buntings and danglers. In addition, product display units are given out to large and potential outlets through the year in order to create distinct and greater product visibility in trade.

2.14 Trade Promotions
Trade Contests
An annual Trade contest has been held for the last two years running in the form of a Display Contest. The contest is very simple. Retailers are given points based on product purchase, shelf display, POP advertisement maintenance and additional creativity in display. The program obviously runs for a specific duration of time, usually 2 months. At the end of the promotion period, retailers with most number of points within their stipulated territory are given cash prizes.

Push Money
During this trade promotion, cash discounts are given to traders when they purchase a specified minimum number of products within a given time. In the case of NIDO, discounts are given when traders purchase certain number of cartoons of NIDO. (Ex: a carton of NIDO 350g contains 24 packs).

Complementary Gifts
In order to build better relationships with the trader’s gift items such NIDO branded clocks, caps and t-shirts, bags etc. are given out.

2.13 Consumer Promotions

The specific objectives of consumer promotions for NIDO include increasing short-term sales, creating hype among consumers and build brand equity through association of brand positioning and promotion theme. In the case of NIDO, usually premium based consumer promotions have been used. In 2005, only one consumer promotion was run with title “Growth Kit”. The concept of this CP was very simple. Consumer got a free Growth Kit set, which included a height sticker, NIDO mug and nutritional booklet for mothers with purchase of one NIDO 350g pack. The promotion also helped build NIDO associations with the concept “growth of children” because the gifts were directly related with the concept. Similarly, in the previous year similar consumer promotion was run with free gifts of “Stationery set for children” and “Faber castle crayon set” for children.

2.14 Event Marketing & Sponsorships
From time to time, NIDO does engage in event marketing and sponsorships. However, they do have to be related to the brand’s positioning and targets consumers. For example, in 2006 NIDO sponsored a children’s art exhibition, science fair for young children in schools. NIDO also co-organizes an annual story writing competition for children with the title “NIDO Shaptahik 2000-Golpo Lekho Golpo Jeto”. This competition is conducted through out the country in almost 10,000 schools.
Publicity

NIDO organizes nutrition based educational programs in schools for mothers with the aim of providing information and knowledge to mothers on how best to take care of the nutritional needs of children and what role milk plays in respect of their nutritional needs. The programs titled, “NIDO Growth Program” was conducted in over 150 schools last year and will be conducted in more schools this ye

Consumer Confidence
The Consumer Confidence department is the scientific heart of the Nestlé Quality System. Consumer confidence and trust has been fundamental to Nestlé’s success for over 135 years.
Our wide range of expertise is made available to R&D scientists, operational and technical units and businesses. We cover five main areas.

Market Position of NIDO (Dhaka)

3.1 Analysis
One of the prime targets of this research was to find out the NIDO information. As the market is so much competitive and some of the companies are so much concentrated about Niche marketing, they always need to know who are their customers, what they are wanting from a particular brand, what are their likings and disliking etc. This is truer in case of NIDO as it is always focused on the demands of its consumers. So at the beginning of the survey, I wanted some of the NIDO information such as their occupation, age, education level, gross family income etc.

3.1.1 Occupation:

 3.1.2 Age

 3.1.3 Education

 3.1.4 Gross family income

3.2 Brand Awareness
Next few queries to them were dedicated to discover the brand awareness among the NIDO mothers about their brand. In this case, questions were asked like ‘why they are currently using NIDO’, ‘has she taken the advice of someone else before choosing a particular brand’, ‘what does she know about NIDO FCMP, NIDO GUM, Prebio 1, perfect growth formula’ etc.
3.2.1 Why currently using NIDO

3.2.2 Has consumer taken the advice of other?

3.2.3 What does a consumer know about of NIDO FCMP

3.3 Consumption Habit
The next few questions to them were to identify their consumption habits.
3.3.1 Use of NIDO

3.3.2 Age of the kid who is actually consuming the milk

3.4 Product related attitude
To know the product related attitudes, we asked several questions such as ‘what are the considering factors behind purchasing NIDO’, ‘what extra benefits she wants from NIDO’ etc.

3.4.1 Considering factor behind purchasing NIDO

3.4.2 What extra benefits consumer wants from NIDO

3.5 Buying pattern
to know the buying patterns, I tried to discover their buying frequency, which makes the purchasing decisions, who is actually making the purchase etc. to them.

3.5.1 Who is making the purchasing decision

3.5.2 From where consumers purchasing it

70.0% of the respondents are purchasing NIDO from the modern trades (Super shops). Other 24.0% are purchasing from confectionary/ stationary and the rest 6.0% are purchasing from nearby grocery shops.

3.5.3 Is NIDO is available in the market?

3.6 Communication and promotion:
To discover their frequently used communication channels, asked the following questions to them:

3.6.1 The Communication media consumers watches frequently

3.6.2 Has consumer ever watched a NIDO advertisement?

The above table will show the details of the communication channels where the NIDO mothers have seen the NIDO advertisement. Most of them told that they have seen it in the televisions.

3.6.3 Where a consumer has watched the NIDO advertisement?

3.6.4 Better than any other brand in the market according to Quality

This is the part where we will try to elaborate and explain the details that we have got during our survey about the NIDO full cream powder in Narayangong.

4.1 Analysis
The following are the necessary information of the NIDO mothers Narayangong

4.1.1 Occupation:

4.1.2 Age

4.1.3 Education

4.1.4 Gross family income

4.2 Brand Awareness

Next few queries to them were dedicated to discover the brand awareness among the NIDO mothers of Narayangong about their brand. In this case, questions were asked like ‘why they are currently using NIDO’, ‘has she taken the advice of someone else before choosing a particular brand’, ‘what does she know about NIDO FCMP, NIDO GUM, Prebio 1, perfect growth formula’ etc.

4.2.1 Why currently using NIDO

4.2.2 Has consumers taken the advice of other?

4.2.2 What does a consumer know about of NIDO FCMP

4.3 Consumption Habit

The next few questions to them were to identify their consumption habits.

4.3.1 Use of NIDO

4.3.2Age of the kid who is actually consuming the milk

4.3.3 How many times the kid is consuming milk

4.4 Product related attitude
To know the product related attitudes, we asked several questions such as ‘what are the considering factors behind purchasing NIDO’, ‘what extra benefits she wants from NIDO’ etc.
4.4.1 Considering factor behind purchasing NIDO

4.4.2 Which sort of benefits will motivate consumers to change his existing brand

4.5 Buying frequency

To know the buying patterns, we tried to discover their buying frequency, who makes the purchasing decisions, who is actually making the purchase etc. to them.

4.5.1 Who is making the purchasing decision

4.6 Communication and promotion:

4.6.1 The Communication media consumers watches frequently

Has consumer ever watched a NIDO advertisement?

4.6.2 Where a consumer has watched the NIDO advertisement?

4.7 Better than any other brand in the market according to Quality

According to price

Comparison between two cities
5.1 SEC Information

5.2 Brand Awareness:

5.3 Consumption Habits:

5.4 Product related attitude:

5.5 Communication and promotion:

This is another vital part for the marketers. These sections were to find out the communication channels they are using. In this regard also, we have found that mothers from both the localities rely upon television more than any other medias. As a result, the marketers should communicate through this channel, as it will cover most people.

Findings &Recommendation
6.1 Findings

Basing upon the survey result, here are some of the recommendations for Nestlé Bangladesh:

The objective of this research was to study market position of NIDO full cream milk powder. From our report it is concluded that NIDO has a good reputation as a strong consumer brand. Most of the consumers use Nestlé’s products regularly. This is also proved by the statistical and graphical analysis of the data obtained from consumers that they are quite satisfied from nestle NIDO full cream milk powder. Nestle formulating a good strategy and they are trying to go for mass-marketing. NIDO benefits from Nestlé’s nutrition and milk products know how. It has been in the family for generations and has always symbolized the guarantee of constant premium quality. NIDO is knowledge and is a recognized authority around the world on child feeding and well being NIDO is reliable and will always find ways to satisfy the nutritional needs of growing children

We have tried our best to learn, enrich our knowledge, discover and overcome our limitations and adjust with the professional environment. It is not possible to recognize and identify all the process and procedure of all areas within a short time. This experience of sharing works with such working environment will help me a lot in our professional life.

Bibliography

Book

Website:

Questionnaire:

Name:
Occupation:
Contact Number:
Age:
[    ] 22 to 25    [    ] 26 to 29     [    ] 30 to 33     [    ] 34 to 38     [     ] above 38
Education:
[    ] Below SSC    [    ] HSC     [    ] Graduation    [    ] Above Graduation
Gross family Income:
[    ] Below 15,000    [    ] 15,000 – 20,000    [    ] 20,000 – 25,000   [    ] 25,000 to above
Which brand do you use: ______________________________________________

Brand Awareness:

How many brands consumers know, what those are and from where he/she knew about these: __________________________________________________________________________________________________________________________________________

Why he/she is currently using NIDO?
__________________________________________________________________________________________________________________________________________

What does consumer know about NIDO FCMP? _____________________________________________________________

Consumption Habit:
Whether he/she uses NIDO for baby food only or he/she uses it for other purposes also; what is the age of the person who is taking it:
__________________________________________________________________________________________________________________________________________

In her family, who is actually consuming the milk?
__________________________________________________________________________________________________________________________________________

Product related attitude:
What are the considering factors while purchasing NIDO:
_________________________________________________________________________________________________________________________________________________

What extra benefits she wants from NIDO or what does NIDO missing as a FCMP: __________________________________________________________________________________________________________________________________________

­­­­­­­­­­­­­­­­­­­­­­
Buying Pattern:

In case of her family, who is actually making the purchasing decision?
__________________________________________________________________________________________________________________________________________

From where, she is purchasing NIDO:
a) From nearby grocery shops             b) from stationary        c) from super shops

Is NIDO is available in the market? ___________________

Communication and promotion:
Which sort of communication media she watches frequently
a) Television       b) Radio        c) Newspaper              d) Magazine                 e) Others

Has consumer ever watched a NIDO advertisement and where?
__________________________________________________________________________________________________________________________________________

Which advertisement of FCMP consumers likes most and why? Whether or not believes the messages of the advertisements:
__________________________________________________________________________________________________________________________________________