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Presented by: Neha Sharma

Presentation on Market

Segmentation In Foreign Markets

I. The related concepts of market segmentation , target marketing .

II. The process of market segmentation , including its benefits and conditions for use.

III. Bases for segmenting consumer and business markets.IV. The most frequently used methods of forecasting the

demand of market segments.V. List of top Indian companies operating at global level

with market segmentationVI. manufacturing industry of CHINA, Segmentation in INDIA. VII. Segmentation Of Nestle IN BANGLADESH.VIII. Impact of different industries of foreign countries , on

India's domestic market..IX. Suggestions….

Topics for the discussion:

Market segmentation is the process of disaggregating the market into number of distinctive subset of buyers each with relatively homogeneous characteristics .

Market Segmentation

i. To reduce risk in declining where, when, how and to whom a product ,service or brand will be marketed.

ii. To increase marketing efficiency by directing effort specifically toward the designated segment in a manner consistent with that segment’s characteristics.

iii. Market Segmentation helps the marketers to devise appropriate marketing strategies and promotional schemes according to the tastes of the individuals of a particular market segment.

iv. To make marketing effort more efficient and economic. And to identify less satisfied segment.

Why Segmentation ??.........

It is the process of dividing the world market into distinct subsets of customers that behave in the same way or have similar needs

,or, it is the process of identifying specific

segments-wheather they be country groups or individual consumer groups-of potential customers –of potential customers with homogeneous attributes who are likely to exhibit similar buying behaviour.

So the Global Market Segmentation is????.........

By tailoring marketing programmers to individual market segments, any company can do a better marketing job and make more efficient use of its marketing resources. focus is specially important for small firm with limited resources. Such a firm might compete very effectively in one or two small market segments; however; it would likely be overwhelmed by the competition it it aimed for a major segment.

For example: the Hain celestial group, inc, is focusing on various segments of the U.S and international markets for organic and natural foods. Under one of its brands ,celestial seasonings , the firm markets specialty teas. After water, tea is the most heavily consumed drink in the world and Hain cekestial is developing new market and distribution strategies to support new tea flavors for many different market segments

Benefits and Examples of global market segmentation

Is the process of evaluating the segments and focusing marketing efforts on a country , region or a group of people that has significant potential to respond .

Targeting

Segmenting Business Markets Segmentation basis

Customer location region locations Customer type Industry Size Organization structure Purchase criteria Transaction conditions Buying situation Usage rate Purchasing procedure Order size Service requirements

Possible market segments

South Asia, central America, Atlantic seaboard

Single buying site, multiple buying sites

Selected NAICS codes Sales volume, number of employees

Centralized or decentralized, group or individual decision

Quality, price, lead time

Straight rebury, new buy ,modified buy

Nonuser, light user, heavy user Competitive bidding ,lease Small, medium, large Light , moderate, heavy

Markets are sometimes segmented intuitively ; that is marketer relies on experience and judgment to make a decision about the segments that exist in a market and how much potential each offers. Others follow the lead of competitors or earlier market entrants .

for example, Gatorade was invented by university of Florida scientists to rapidly replenish the body fluids of the school’s football players. when it was later introduced as a consumer product, it met the needs of a group of beverage consumers that became known as the “ sports drink” segment. As gatorade’s popularity grew, imitators such as powerade from coca-cola and all sport from Pepsi was introduced. Each has taken a small share of the market, but they did not unseat gatorade as the brand with the largest share. And the future may get even rougher for these imitators now that gatorade has been acquired by pepsi, and will benefit from even broader distribution.

Another alternative is to perform structured analysis ,usually supported by some market research , in order to identify segments and measure their potential .this approach even if done with a small budget ,often produces insights and opportunities that would be overlooked otherwise.

Content:key points….

Undifferentiated marketing Differentiated marketing Concentrated marketing

Undifferentiated Marketing: Undifferentiated marketing is a  strategy in which market segments differences are ignored and one product or service is offered to the entire market.

Differentiated Marketing: Differentiated marketing is a type of marketing strategy where a firm offers products or services to a number of market segments and develops separate marketing strategies for each.

Example: As an example, the alcohol beverage brewer, Anheuser Busch, makes the Bud Light brand of beers. As seen with the three advertisements below, the company segments their marketing efforts across several markets. In this example, we see advertisement segmented for the following markets: same-sex couples, Hispanics, and African American’s.

Each market segment would need a separate market strategy.

Alternative strategies:

Concentrated Marketing : Concentrated marketing is a type of marketing strategy where a firm chooses to focus its marketing efforts on one particular market segment.

strategy Description example

Undifferentiated Sending the same promotional message to everyone

Promoting the city as a historic destination by placing ads in widely read newspapers

differentiated Designing a promotional message that communicates the benefits desired by a single specific segment

Promoting the city as historic by targeting elderly members of historical societies by placing ads in their newsletters

concentrated Designing more than one promotional message, with each communicating different benefits

Also targeting families by communicating a promotional message about the importance of children learning history

1 •Identify the current and potential wants that exist within the market

2 •Identify characteristics that distinguish among the segments

3 •Determine the potential of the segments and how well they are being satisfied

Process of market segmentation

The marketer carefully examines the market to determine the specific needs being satisfied by current offerings, the needs current offerings fail to adequately satisfy, and the needs that may not yet be recognized. This step may involve interviewing and/or observing consumers or firms to determine their behaviour, levels of satisfaction and frustrations.

SECOND STEP: In this step the focus is on what prospectus, who share a particular want have in common to distinguish them from other segments in the market that have different wants. from the result of this step , potential marketing mixes ( including product ideas) for the various segments can be designed. These alternatives can be further analyzed.

THIRD STEP : The final step is to estimate the potential sales of each segment, the urgency of the need , and the strength of the competition

FIRST STEP:

Forecasting is essential in evaluating possible target segments. it involves estimating the demand of the market. Management usually estimates the total sales that could be expected under ideal conditions for all firms comprising the industry-market potential –and for its particular product-sales potential.

Basic Forecasting Terms:

A. Market Share:

I. a term used frequently in business as a performance measure, market share is the proportion of total sales of a product during a stated period in a specific market that is captured by a single firm.

II. The base for calculating market share can refer to entire industries , segments of industries can also apply to past, present or future periods.

III. Example: the steel industry has 95% market share for canned – food containers ,is working to prevent a recurrence of the inroads in food packaging made by the aluminium makers in the market for beverage cans,. So awareness of the base and time period used in computing market share is essential to correctly interpreting the statistic.

Methods for forecasting demand of market segments

Market Factor:

a) A market factor is something that : (1) exists in a market. (2) is a measurable .(3) is related to the demand for a product in a known way.

b) Example at global level : In segmenting world markets geographically ; McDonald’s at one time used population ; per capita income and the number of people per store in the U.S as market factors to obtain a rough forecast of the no of stores a country could support.

c) Example at the domestic level: no of cars three years older is a market factor for the demand of replacement tires. it is a market factor because the no of replacement tires that can be sold changes as the no of older cars changes.

Market potential: is the total sales volume that all the

organizations selling a product during a stated period of time in a specific market could expect to achieve under ideal conditions.

Sales potential: is the portion of market potential that a

specific company could expect to achieve under ideal conditions .

Market potential, sales potential and sales forecast:

The final step in estimating demand is a sales forecast ,indicating probable sales or the company’s brand of a particular product in future time period and with a specified marketing program. The forecasting normally covers one year.

Survey of buyer intentions Sales-force composite Past sales and trend analysis Test marketing Executive judgment Market factor analysis

Methods of sales forecasting:

Segmentation at Global Level by foreign and Indian markets

Tata Group ( $ 15.37 billion brand value) Bharti Airtal ( $ 4.92 billion) State Bank Of India ($ 6.5 billion) Life Insurance Corporation ( 4.52 Billion brand

value) Reliance Industries Limited ( 3.66 billion) Indian Oil Corporation ($ 28.3 billion) Infosys(3.41 billion) Larsen & Toubro($ 3.23 billion) HCL($3.14 Billion ) ONGC ( $ 2.89 billion)

Top world famous indian brands:

COMPANY NAME REVENUE( in US D million)

RANKING(2015) PREVIOUS YEAR RANKING

TATA STEEL 27,739 401 370ONGC 30,746 357 361TATA MOTORS 34,575 314 359STATE BANK OF INDIA

36,950 285 292

HINDUSTAN PETROLEUM

38,885 267 336

BHARAT PETROLEUM

44,582 225 272

RELIANCE INDUSTRIES

76,119 99 134

INDIAN OIL 86,016 83 98

Top 8 Indian companies at international level..(Acc to fortune500….)

7 Indian companies are: Indian Oil Corporation (161st), Reliance Industries (215th), Tata Motors (226th),

State Bank of India (232nd), Bharat Petroleum (358th), Hindustan Petroleum (367th) and Rajesh Exports (423rd).

Global top 10 companies: Wal-Mart (1st), State Grid (2nd), China National Petroleum (3rd), Sinopec Group

(4th), Royal Dutch Shell (5th), Exxon Mobil (6th), Volkswagen (7th), Toyota Motor (8th), Apple (9th) and BP (10th).

The world’s 500 largest companies generated collectively generated 27.6 trillion dollars in revenues and 1.5 trillion dollars in profits in 2015.

Together, 2016 Fortune Global 500 companies employ 67 million people worldwide and are represented by 33 countries.

Fortune500 (2016)…

China’s manufacturing industry operating in india and there market segmentation in Indian markets

China and India are the largest agrarian economies in the world, accounting for a substantial share of the world poorest people. China’s companies operating in india:

CHINA China’s president “Xi Jinping” The most significant strength of IT in China is its full support from Chinese government.  china maintains a number of preferential policies for high-tech

investments, including tax holidays and refunds.  China's population is above 1.2 billion and it is estimated that it

will grow at a rate of 17 million annually. The potential customer base means huge demand. To keep up with this momentum and customer demands, the IT industry will be treated as a priority sector by the government with preferential policy and heavy investment.

China major exports are to India :

Export growth has been a major component supporting China's rapid economic expansion. In the last 2 years, the exports declined due to weaker global demand but China's proportion of global exports rose to 13.8 percent in 2015 from 12.3 percent in 2014.

Exports from China declined by 4.4 percent year-on-year to USD 184.73 billion in July of 2016, following a 4.8 percent drop in the preceding month and market consensus of a 3.0 percent drop. Exports in China is reported by the General Administration of Customs.

Mechanical and electrical products (41 percent of total exports), high tech products (20 percent),

Labor-intensive industries like: clothing, textiles, footwear, furniture, plastic products and ceramic (16 percent), motors and generators (5 percent) and integrated circuits (5 percent).

China’s main export partners are the United States (18 percent of total exports), Hong Kong (15 percent), the European Union (16 percent, of which Germany, the UK and the Netherlands account for 3 percent each), ASEAN countries (12 percent, of which Vietnam accounts for 3 percent), Japan (6 percent), South Korea (4 percent) and India (3 percent).

China’s Exports and Imports with India

China’s imports from India :

Indian Exports to China is an integral part of the bilateral trade relations between the two Asian countries, India and china. Indian Exports to China focus on mainly primary products.

In 1984, India and China signed a trade agreement, providing for Most Favored Nation treatment, to foster greater cooperation between each other.

Moreover, the year 2006 was celebrated as Friendship Year between India and China.

The principal items of Indian exports to China comprise of ores, slag and ash, iron and steel, plastics, organic chemicals, and cotton . At present, iron ore constitutes about 53% of the total Indian exports to China. The other items that have potentials are marine products, oil seeds, salt, inorganic chemicals, plastic, rubber, optical and medical equipment, and dairy products.

great potential exists in areas like biotechnology, IT and ITES, health, education, tourism, and the financial sector - all of which will contribute to the services and knowledge based sectors.

China has experienced spectacular economic growth, quadrupling its GDP to become the second largest economy in the world based on its purchasing power parity (CIA Fact book, 2005). Much of this growth is driven by manufacturing.

China is the most competitive manufacturing Nation Index studies, China is again ranked as the most competitive manufacturing nation in 2016, but is expected to slip to second position

China has become the manufacturing centre of the world. Exports of manufactured goods have risen at a rate of 15 percent per year to about $730 billion.

  China now makes 50 percent of the world's telephones, 17 percent of refrigerators, 41 percent of video

monitors, 23 percent of washing machines, 30 percent of air conditioners, and 30 percent of colour.

The Chinese electronics industry has become the leading export industry in China, and has a significant presence globally across a wide spectrum of electronics products, from household electrical appliances to semiconductors. Today China makes $60 billion worth of consumer electronics goods a year.

China is also fast becoming an important source of automotive electronics for the global market. According to figures by Chinese supplier Asimco Technologies, in 2005, China exported $1.49 billion worth of automotive electronics and electrical instruments.

  The combination of preferential government policies, foreign direct investment, great infrastructure, and

human capital has contributed to the success in Chinese electronics and automotive component manufacturing.

Manufacturing Industry Of China

India’s manufacturing sector has lagged behind those of China, Thailand, Malaysia, and Mexico. The main reasons multinational companies have not invested in India results from the lack of infrastructure including electricity, roads, and sea and air ports as well as government regulation and corruption.

  Despite these obstacles to growth, electrical and electronic

components manufacturers ABB, Honeywell, and Siemens and automotive manufacturers DaimlerChrysler and Toyota Motor have started operations in India. 

  India needs to continue to take steps to improve its infrastructure

and government regulation in order to increase FDI flows. A further examination of the electronic components and automotive manufacturing sectors will provide insight on what factors are spurring growth in these sectors and what government regulations need to be leveraged to increase growth.

Manufacturing industry of India

Lenovo Group Ltd. /lɛnˈoʊvoʊ/ is a Chinese multinational technology company with headquarters in Beijing, China, and Morrisville, North Carolina, United States. 

CEO:  Yang Yuanqing (Feb 5, 2009–)

Stock price: 0992 (HKG) HK$ 5.47 +0.07 (+1.30%)15 Aug, 4:09 PM GMT+8 - Disclaimer

Headquarters: Morrisville, North Carolina, United States

Founder: Liu Chuanzhi

Founded: 1984, Beijing, China

Lenovo ( CHINA)Laptop’s manufacturing company

Competitors : apple, sony, samsung, microsoft corporation, Dell Inc, hawlett-packard company, and many other companies.

Mission statement:

 is to become one of the world’s great personal technology companies .we aspire to achieve this objective by leading in three key areas:

Personal Computers:  Lead in PCs and be respected for our product innovation and quality…..

Convergence :  Lead the industry with an ecosystem of devices , services applications and content for people to seamlessly

connect to people and web content!...........

Culture:  become recognized as one of the best most trusted and most well respected companies to work for and do

business with!.........

The products of Lenovo are known to be dependable and reliable. As we are focusing on the Lenovo laptops the range it includes or the laptops it offers are as follow:

vision : is that Lenovo will create personal devices more people are inspired to own a culture more people aspire to join and an enduring trusted business that is well respected around the world! this vision guides us in pursuit of our mission to become one of the world’s greatest personal technology companies…..

The Laptop MarketThe laptop market targets a variety of groups: students, who are especially concerned with prices; gadget-geeks and techies, who are looking for the most advanced systems; design aficionados, who are primarily seeking a sophisticated computer that looks good;

and

also the people who don’t get emotionally involved in this category and only view the computer as a work and entertainment tool. However,

what all these groups have in common is the tendency to share information and opinions online. The conversation about laptops is mainly dominated by requests for advice and brand comparisons, and many people consult expert forums for recommendations

The Lenovo also focused on the customers with new concepts and high level educations. There are four market segmentation have been used in the market for the computer industry to push the product to the people.

Demographic segmentation:

Segmentation of LENOVO in INDIA

• Purchasing habit of women can’t be overlooked in PC’s market, because most women buyers the stylish appearance and lightweight portable design rather than the computer performance.

GENDER• Tweens and teens usually use their computer for study and

online game, while Generation X use their computer for work and social contact. The Idea Pad design marked a deviation from the business-oriented ThinkPad laptops, towards a more consumer-focused look and feel

AGE• because the income directly determine the purchasing

power of consumer, Lenovo PC products are distributed across low end market, mid-range market and high end market.

INCOME AND EXPENDITURE

Lenovo divided the overall market based on mature market and emerging market.

Lenovo gave up this method of market segmentation, while Lenovo divided the global market into four parts: Chinese market, North American market, EMEA market (Europe, Middle East and Africa market) and Asia Pacific - Latin American market

Lenovo sells its laptops to almost every country in the world but has major consumers in China and India. Lenovo computers are the second largest selling computer brand in the world after having bypassed Dell and Acer.

Executive headquarters: New York Principle Operations: Beijing, Singapore Sales Headquarters: Beijing, Singapore, New York, Paris Manufacturing Centre’s : China, India Lenovo operates 46 world-class labs, including research centres in

Yokohama, Japan; Beijing, Shanghai, Wuhan and Shenzhen, China; and Morrisville, North Carolina, U.S.

GEOGRAPHIC SEGMENTATION

They have a luxury problem in some ways, the brand is not well known, yet Lenovo’s sales grew 35% ending 2015.Lenovo has had great success in enterprise and B2B market segments. The company enjoys large market shares, dominating both business and industrial segments in China and India.

Lenovo's marketers quantify aspects of consumers' personalities and lifestyles to create goods and services for a target market.

For example, Lenovo products advertisements are different in Mainland China and India. Because consumers in China focus on the performance of the product while Indian consumers focus on the spirit that the product convey. Furthermore, most Chinese PC consumers like comparing goods before taking money from their wallet, while European consumers prefer to pursue high-quality product and to make decision quickly.

In the psychographic segmentation emphasize is on the lifestyle and interest of Lenovo’s customers. Some children have more interest in playing the videos games on the laptop and some people prefer to watch the movies on the laptop.

PSYCHOGRAPHIC SEGMENTATION

The benefit segmentation is related with the design and delivers the product to the consumer by offering the relevant service to the consumers It includes: ..................

Customer Segmentation

BEHAVIOURAL SEGMENTATION

•Lenovo Company for business design the idea pad S, idea pad U and Think pad R

General Business Purpose

•For student group Lenovo mainly makes idea pad Y series.College Students

•For advance games Lenovo offers 3000 series and Lenovo yoga

Advanced Gamers

Marketing Strategies: The Strategic plan defines the company’s overall mission and objective and hopes to achieve company’s objectives. Through market segmentation, targeting and positioning the company decides which customers it will serve and how. The company also designs a marketing mix made up of factors under its control product, price, place, promotion.

Provides customer call and chat services in 15 different languages.

Lenovo divided the overall market based on : (1) mature market and (2) emerging market.

Lenovo covers low level, medium level, and high-level products, targeting various users ranging from individuals to large enterprises.

Additionally, Lenovo is a market follower after Dell and HP and this pricing strategy can allow them to ensure values as well as the optimal price of the products.

In contrast, Lenovo attack emerging market, such as Kenyan market, with cheap PCs, Furthermore, The Group's PC business across the mature markets are facing challenges in the retail channel due to significant slowdown in consumer demand.. Overall, Lenovo’s target market will be considered when making decision about the four marketing mix variables.

Marketing Strategies By LENOVOLOCAL MARKETING

Differentiation Strategy:

A differentiation strategy is based upon persuading customers that a product is superior to that offered by competitors. The major benefits to Lenovo of a successful differentiation strategy are:

(1) Its products will command a premium price. (2) Demand or its product will be less price elastic than that for competitors‟ products. (3) Above average profits can be earned. (4) It creates an additional barrier to entry new business wishing to enter the industry.

Lenovo is seeking to differentiate itself which will organize its value chain activities to help create differentiated products and to create a perception among customers that these offering are worth a higher price.

Pricing Strategy: . Lenovo has been very aggressive in its pricing strategy with its different series of laptops and

respective models. Lenovo initially followed IBM’s pricing policy. This can be considered skimming done by a company which wants to earn as much as possible.

Based on different levels of consumers, Lenovo developed different prices, by creating differentiated products to meet different consumer groups, formulating differential price discrimination.

MARKET STRATEGY OF LENOVO IN INDIA

Lenovo's production line is continuity, so prices of their products are also of continuity, from more than 10,000 Yuan to more than 2000 Yuan. Almost every 500 Yuan there are two products to serve the different needs and purchasing power of consumers. Lenovo now has 19 species, 200 various models of products; Lenovo's exports and diversified product enable it to avoid involvement in domestic plague of the price war impact of its competitors.

Lenovo's price strategy can according to products in accordance with the best performance of the physical value, brand value, the value of service and other form of value make Lenovo establish an independent retailer.

Cognitive value in the eyes of consumers, which can be the base of the price of Lenovo products and achieve the relatively independent cognitive value system. This awareness of the value system is not set up like the prices can be as simple imitation. Such an independent value and the price of Lenovo model are built on years of accumulated brand and the concept of service. This created a core competitiveness of Lenovo brand and Lenovo is still invincible in the fierce competition.

. Lenovo Laptops prices are in the range of Rs.24500 to Rs.54000.There are several high end models also which cost more than Rs. One Laths. Dell is the market leader which offers an AMD Athlon processor in its lowest costing desktop worth 16000Rs.In the same category, Lenovo introduced the 3000Hseries-a P4 processor for Rs 18000/-.Lenovo has always maintained a product mix such as bread and butter products like 3000H series and high end products like ThinkPad and Think centre

The Lenovo’s competent advantage is developed from differentiation and cost saving through value chain. It’s main focus on:

Improved supply chain; A cheaper price through lower transaction costs; Convenience and twenty-four-hour access; Good reputation among customers; Quick and efficient search capability; o The personality of the service; Wide selection and one-stop shopping; First mover in the market stronger than average and well-known

Focus Strategy In India

• Lenovo famous brand names makes Lenovo stay well in the fierce market competition, Lenovo’s lot of advertising budgets provided a strong guarantee for the material in order to maintain the competitiveness of Lenovo brand. Over the years, Lenovo brand and Lenovo advertising leave a deep impression in people’s minds, enhancement of brand recognition, is actually the acceptance of Lenovo cultural diffusion .

Lenovo also advertise its products on radios and television throughout the world to spread the awareness about their products and latest additions to people. Lenovo also use various search engines and official sites to advertise its latest laptops. Lenovo made ThinkPad as the bridge to increase the brand value in international market. Very strong strategy used by Lenovo was in 2008 for Olympics.

Television: Advertisement will be released on free-to-air channel like ABC, Channel 7, Channel 9, Channel 10 and SBS, and subscription broadcasting,

Radio: Radio is a nearly ubiquitous medium in Australia and has strong potential as an advertising medium. Advertisement will be released on some music channel like b105 in Brisbane.

Lenovo should build various communication mixes so that it can connect to its key group.

Media Engagement

India’s food industry Nestle Segmentation In Bangladesh

The company is acknowledged as one of the leading companies in the FMCG sector with “ Top rated wealth creators of India”

It is progressively evolving into food, beverage, nutriton ,health, wellness and touching lives of people.

Nestle India has strong brands like Maggi, Nescafe, Cerelac, Lactogen, kit Kat polo, Milo and Polo.

It has set up “café nescafe” and “coffee corners” in mini metros.

Nestle is leveraging the vast consumer base in India. There has been continuous focus on values.

Argentina:”Change the day start within”Germany: Give yourself a break”United state: “The smart choice”India:”good food good life”

Henri o nestle

Nestle was founded in 1867 in Geneva, Switzerland by Henri Nestle. Nestle's first product was "Farine Lactee Nestle", an infant cereal. In 1905, Nestle acquired the Anglo-Swiss Condensed Milk Company. Nestle's relationship with India started in 1912. It began trading as The Nestlé Anglo-Swiss Condensed Milk Company (After India's independence in 1947, the economic policies of the Indian Government emphasised the need for local production. Nestlé responded to India's aspirations by forming a company in India and set up its first factory in 1961 at Moga, Punjab.

Nestlé India’s first production facility, set up in 1961 at Moga (Punjab), was followed soon after by its second plant, set up at Choladi (Tamil Nadu), in 1967. Consequently, Nestlé India set up factories in Nanjangud (Karnataka), in 1989, and Samalkha (Haryana), in 1993. This was succeeded by the commissioning of two more factories - at Ponda and Bicholim, Goa, in 1995 and 1997 respectively. The seventh factory was set up at Pantnagar, Uttarakhand, in 2006. The 8th Factory was set up at Tahliwal, Himachal Pradesh, in 2012.

Nescafe employs a “think globally ,act locally” strategy NESCAFE coffee is marketed as global brand even through advertisement messages and product formulation very to suit cultural .

Nestle uses the most suitable language for advertising in different countries .

NESCAFE

Helps reinforce the message and the recognition of the brand

White on a contrast background color which can be slightly altered to suit the packaging of any product

N’s stroke covers all the rest of the letters to create unity

Letter style is strong and bold representing the strength of its qualityAlso implies sophistication of its taste through the use of Serif font.

The little stroke above the letter E suddenly makes the word café be seen as one separate word

The words “NESTLE” combines with the sense of fun and warmth of a “CAFÉ”

WITH SUCH A STRONG CULTURE OF TEA PRODUCTION AND CONSUMPUTION AND COFFEE CULTURE JUST EXISTIONG ON A FRINGE , A CAMPAIGN BY NESFACE TO ENCOURAGE BANGLADESHI CONSUMERS TO HAVE “ MY FIRST CUP” OF NESCAFE INSTANT COFFEE. AT THE TIME OF ITS STUDY THEY CAPYTURED THE IMAGINATION OF STUDENTS

Nestlé’s basic strategy is to cover only the urban area of Bangladesh. That’s why they are doing their activities in main and metropolitan cities of Bangladesh.

They want to keep babies and children healthy and ensure their proper nutrition. That’s why majority of their products are baby food products. They also target new generation to build a strong relationship by providing various food products.

They want to move customers toward their products. That’s why they are offering new products continuously. They also arrange many social competitions for babies to enter their mind.

NESTLE SRATEGY IN BANGLADESH

I. GEOGRAPHIC SEGMENTATION

Weather: Nestlé Bangladesh Limited segmented its market for Nescafe Ice based on the geographic weather: hot and cold.

  Nescafe Ice: A coffee which can be

consume with ice. During hot season consumers consume this coffee with normal or cold water with ice cube to bring freshness in their mind.

BASES FOR SEGMENTATION OF NESTLE IN BANGLADESH

products Cerelac, Lectogen, Koko Krunch, Nido, Nestle divided the market segment for baby and children of different ages.

A. Nido: It is nutritious milk specially formulated for children 2 years onwards. It contains 25 minerals and vitamin D which helps child’s growth.

B. Cerelac: Nestle also offers cerelac for new born baby. It contains milk and rice mixed for under one year’s baby. It fulfills baby’s proper nutrition.

C. Nesquick, Koko Krunch: Both are chocolate milk for children.Nesquick and Koko krunch maintain child’s proper growth. It’s very delicious and also contains vitamin protein, mineral.

D. Lactogen: Nestle Bangladesh brings full cream milk powder in our country. It gives baby proper nutrition .Lactogen 1 is for babies whose age less than 7 months and lectogen 3 is for babies whose age is below 12 months. 

DEMOGRAPHIC SEGMENTATION

Occupation: Nestle segmented the market based on their customer’s occupation.

1.  They have also various products for various occupied peoples. For example their product KEYLOGGS CORNFLAKES are produced aimed at people who doesn‟t have much time for preparing breakfasts for themselves and their family because of the work load arises from their occupation. Another example is Nescafe classic.

2. Nescafe classic: This product is for those who work hard and needs more freshness. Both the male and female who need more caffeine Nescafe classic is for them.

 Income: Nestle segmented their market based on customer’s income in an effective way.

1. Some products of Nestle are aimed at people of relatively high income group such as Kitkat Chocolate, Cornflakes

2. And some products are aimed at people of low income level such as Maggie Shaad-E Magic. Another example is Lectogen.

3. Lectogen: Nestle charge tk 800 for per 900 gm Lectogen 12 milk powder. They also charge tk 1000 for 900 gm Lectogen 3 milk powder pack. Middle income and low income people are not able to buy these products for their babies.

OCCUPATION StudentsAge: 15-

23 Lifestyle: BusyDenstiy: UrbanPersonality: Ambitious, outgoingOccasion: Seasonal (at exam times)Benefits: ConvenienceUser Status: Potential user, regular user, first-time userUser rate: Light userLoyalty Status: Medium

ProfessionalsAge: 23-31Lifestyle: WesternDenstiy: UrbanPersonality: Inspired, outgoingOccasion: In the morningsBenefits: QualityUser Status: Regular userUser rate: Medium userLoyalty Status: None, medium, strong

ManagersAge: 46-60

Family Life Cycle: Married w/children

Lifestyle: Hard-worker

Denstiy: Urban Personality:

Ambitious Occasion:

Regular Benefits: Speed User Status:

Regular user User Rate: Heavy

user Attitude toward product:

Indifferent

POTENTIAL TARGET SEGMENTS

  Life style and personality: Nestle Bangladesh

provides KIT KAT these people who really want to enjoy chocolate.

Nescafe 3 in 1 is for exclusively those customer’s who are really busy and do not have enough time. They can save their time by taking Nescafe 3 in 1.All the things sugar, milk and coffee remain mixed.

Psychographic Segmentation

Benefits: Based on benefits Nestle Singapore segmented their market in an efficient way. So they make available Cerelac for those customers who want more profit from the product. Cerelac includes a high nutrition for baby's whose age is less than 1 year. Two very important things rice and milk remain added in cerelac. On the other part, cerelac includes vitamin, more mineral and all major useful nutritious elements for babies. 

 

Behavioural Segmentation

Nestle Bangladesh Ltd evaluated the various market segments on the basis of segment size and growth, segments, structural attractiveness, and company objectives and resources and decided to launch their operation all over the country. Nestle separate their target market because of having unique need and wants.

Nestle Bangladesh Ltd selected their target market into two market coverage strategies:

Undifferentiated: Nestlé has offered several products such as Nescafe 3 in 1 Maggi noodles, and Kit Kat to the people of the whole Bangladesh without differentiating the market segment.

  Differentiated: Nestle also selects the differentiated

marketing. It offers different product for different segments based on different age, occupation, season and climate.

Target Marketing of Nestle

  Nescafe 3 in 1: Coffee for people who are busy.  Koko Krunch, Nesquick: Chocolate milk who want to

get taste of chocolate.  Nescafe Ice: Cold coffee for the people in hot weather.  Concentrated: Through concentrated marketing, Nestlé

achieves a strong market position because of its greater knowledge of consumer needs. In the niches it serves and special reputation it acquires. Nestlé specializes in producing baby foods. It offers nutritious milk powder Lectogen 1 for babies whose age is less than 7 months and lectogen 3 for babies whose is under 12 month. It also offers baby nutrition cerelac for baby less than 1 year.

 

Product Differentiation: Nestle brings a lot of product for target customers. They provide 25 types of minerals in Nido for children. It also provides Cerelac and Lactogen1 &3 for newly born baby exclusively. Now the doctors prescribe these products for babies to their parents for high nutrition Nescafe is a product which contains 4 types of categories. They offer Nescafe ice for hot weather, classic for all 3 in 1 for those who are busy. They provide Maggi including Maggi instant; Maggi 2 minutes which contain various minerals, vitamins and nutritions.Maggi also provide magi healthy soup and Maggi corn soup but charge the same price.

Channel Differentiation: Nestle reach their products to the customers through their expert market salesman and transportation. So that their products are much available to their respective customers. 

Image differentiation: Nestlé’s logo is totally different from its competitors that are greatly accepted by its customers. For that reason customer easily identify them in the market which is another effective advantage for Nestle.

 

Positioning Strategy

People differentiation: Nestle has a large number of employees that are highly educated and trained. In Bangladesh, 400 employees are working in market Company chairman; Peter Brakeck- Letmathe and CEO Paul Bulcke are highly educated, wise and experienced people. They are running this business successfully for a long time.

  Service differentiation: another advantage for this company

is better service for its respective customers from its competitors. They provide 24 hours hot line service. High quality checking is maintaining for its customers. Its marketing dept. and PR (public relation) dept. are working for finding out customer’s new demands and response toward their products.

  

Selecting an overall positioning strategy: The full positioning of a brand is called the brands value

proposition-The full mix of benefits up[on which the brand is differentiated and positioned. The value proposition table shows the product position of Nestle in the following:

POSITIONING STATEMENT

Baby Products: To babies who are deprived of proper nutrition, Nido, Cerelac, Lactogen are the nutritious milk Product that give you more nutrition then any other brand because these contain different types of vitamin, mineral etc.

  Nescafe: To busy people who drink coffee and have little time

for taking rest, Nescafe is the coffee that gives you more energy than any other brand because it has the highest level of caffeine,

  Maggi: To people, noodles and soup consumer who seek better

quality, Maggi noodles and healthy soup that gives you proper nutrition than any other brand because it has the best quality.

  Their motto for business is “GOOD FOOD GOOD LIFE”

The advent of consumer food products has brought a immense

change in the field in the consumers food habit. Nestle has done well to enhance its customers loyalty operating as a market challenger in its industry. Nestle is one of the largest food processing company. Their products and quality mainly depends on their experience and efficiency. Nestle believe on quality that leads to good business and good development. It has segmented the market based on certain clustered preferences deploying multi-stage segmentation approach to meet individual needs of the customers. Offering new products would also close its existing products gaps to a great extend ensuring satisfaction and loyalty.

CONCLUSION