Assignment:2
Course Code: BTM4505
Department: Business and Technology Management
Islamic University of Technology
Submitted by:
Fariha Tahsin (180061105)
Fabiha Bushra (180061110)
Nur E Jannat Faria (180061113)
Prapti Mahzabin (180061123)
Submitted to:
Md. Abdullah Al Mamun
Lecturer
Business and Technology Management
Submission date:09/06/2021
1.
Perceptual positioning map of Maybelline:

For Maybelline-

For kitkat-
● For Maggi
● For kinley:
2.a)
Positioning strategy:
product
Nescafe
Maybelline
positioning statement
“To people who are inspired and outgoing,
cool and trendy,
In the need of starting each morning with
an enjoyable taste and original smell of
coffee,
Nescafé and its Classic gives the best taste
and quality,
That makes you both relaxed, happy and
unsleepy.”
(given)
"To every woman Maybelline New York
aspires to offer innovative, accessible and
effortless by combining technologically
advanced formulations with on-trend
expertise and New York edge."
Kitkat
“The brand is youthful in nature, and
focuses on the consumer segment who love
chocolate, and are willing to indulge
themselves with chocolaty snacks.”
(given)
Kinley
“Nestle India positioned Kinley as a brand
based on ‘Purity’ and ‘Trust’ under the
communication initiative ‘Boond Boond me
Vishwas’. The brand, which already
enjoyed the national distribution network of
Coca-Cola India, Kinley positioned itself as
a trustworthy and pure drinking water both
in rural and urban areas.”
(given)
brandmantra
Mantra –
1. Emotional modifier:
Bringing people together
2.Brand function: Great tasting
coffee
3.Descriptive modifier: Wellbeing
(given)
Mantra –
1.Emotional modifier: Make
it happen
2.Brand function: High quality
makeup
3.Descriptive modifier:
Makes you more beautiful with
subtle care.
(given)
Mantra1.Emotional modifier: love,
affection and sharing
2.Descriptive modifier: Wafer
chocolate
3. Brand Function: Chocolate
hunger snack
(given)
Mantra1.Emotional modifier:
Purity, safety and trusted
2.Descriptive modifier:
Distilled drinking water
3.Brand function:
Water
(given)
Purelife
‘’Nestlé Pure Life (NPL) product strategy
studies show that they are positioning the
product with respect to its attributes that
NPL is safe, pure, refreshing and healthy
water''
(given)
Mantra1.Emotional:Pure
2.Descriptive: family
3. Brand function: Thirst
Cerelac
To all parents and caregivers our Cerelac is
packed for your child that all the necessary
baby nutrition factors and serves as a
complimentary meal for babies above 6
months.
Mantra1.Emotional:Best quality
2.Descriptive : Infants
3. Brand function: Hunger
Kellogg's k
special
To every women our Kellogg's k special is a
brand of breakfast cereal and meal that can
be eaten to help one lose weight.
Mantra1.Emotional: .Hygienic
2.Descriptive :Family
3.Brand function: Weight lose
2.b)
Possible value proposition:
Product
Kinley
Possible value proposition
More for the same
Kitkat
More for the same
Nescafe
More for the same
Maybelline
More for the same
Maggi
More for less
Garnier
More for the same
Purelife
More for the more
BETA
More for the same
Kellogs Special K
More for the same
Cerelac
More for the more
3.
Product differentiation:
Product
Differentiation
What differences to
promote
a) Affordable
b) Profitable
c) Preemptive
d) Important
Kinley
A.
B.
C.
D.
Kitkat
A. Product differentiation
B. Image differentiation
a) Affordable
b) Profitable
c) Distinctive
Nescafe
A. Product differentiation
B. Image differentiation
a) Affordable
b) Profitable
Maybelline
A. Image differentiation
B. Product differentiation
d) Affordable
e) Profitable
f) Distinctive
A. Image differentiation
B. Product differentiation
C. Channel differentiation
c) Affordable
d) Profitable
Maggi
Image differentiation
Product differentiation
Channel differentiation
Service differentiation
Garnier
A. Image differentiation
B. Product differentiation
a) Affordable
b) Profitable
c) Distinctive
Purelife
A.
B.
C.
D.
a)
b)
c)
d)
BETA
A. Product differentiation
a) Affordable
Kellogs Special K
A. Image differentiation
B. Product differentiation
C. Channel differentiation
a) Profitable
b) Distinctive
Cerelac
A. Image differentiation
B. Product differentiation
C. Channel differentiation
a) Important
b) Affordable
c) Profitable
Image differentiation
Product differentiation
Channel differentiation
Service differentiation
Affordable
Profitable
Preemptive
Important
4.
Target market:
The firm's market opportunities are revealed through market segmentation. The company
determines which and how many market segments it will target by examining the various market
segments. Nestle Bangladesh Ltd assessed the various market segments based on segment size
and growth, segmentation, structural attractiveness, and corporate objectives and resources
before deciding to begin operations
Undifferentiated:
Nestlé has offered several products such as Nescafe, maggi noodles,kit kat to the people of the
whole Bangladesh with out differentiating the market segment.
M1(Men,higher
class,middle
class,adult)
M2(women,higher
class,middle
class,adult)
M3
(men,women,lower
class, adult,child)
P1(Nescafe)
P2( Kitkat)
P3(Maggi)
Differentiated:
Nestle also selects the differentiated marketing. It offers different product for different segments
based on different age, occupation, season and climate.
M1(Men,higher
class,middle
class,adult)
M2(women,higher
class,middle
class,adult)
M3
(men,women,lower
class, adult,child)
P1(kinley)
P2(purelife purifier)
P3(Garnier)
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
speciali)es in producing baby foods. It offers nutritious milk powder Lectogen ! for babies whose
age is less than months and lectogen = for babies whose is under 9 month. It also offers baby
nutrition cerelac for baby less than 1 year.
M1(Men,higher
class,middle
class,adult)
P1(Cerelac)
.
M2(women,higher
class,middle
class,adult)
M3
(men,women,lower
class, adult,child)
P2(kelloggs' k
special)
P3(Beta)
5.
Detailed Porter Five Forces Model Analysis of Nestle:
Competitive Rivalry – High
Nestle is in the consumer food market, which is highly competitive. Kraft Foods, P&G, and Group
Danone are Nestle's rivals. There are specific rivals of such products, such as Kellogg's, in some
products, such as breakfast cereal. Despite the fact that Nestle is one of the industry's biggest
players, with over 150 years of experience, it is still up against competition. They have a certain
amount of market share. Both of these companies spend a lot of money on marketing and
advertising, particularly when launching new products. The competition is fierce not only in terms
of price, but also in terms of product variety, innovation, and promotional offers. To maintain their
market share, all industry players must work hard. As a result, Nestle faces fierce competition.
Threat of New Entrants – Low
The consumer food industry is complex, making it difficult for newcomers to succeed. There are
a variety of impediments to entry. Established companies control a significant portion of the
industry. They have a lot of experience and know what customers want. Over time, they have
established consumer loyalty (Othman, 2014). Every year, a slew of new players join the market,
vying for market share even on a local level. Only a few people are successful. Established
businesses have built strong distribution networks and scale economies that enable them to
manufacture and distribute goods at low prices. Nestle faces a low risk of new entrants as a result
of all of this.
Bargaining Power of Suppliers – Low
Nestle has the industry's highest market share. As a result, large quantities of supplies are needed.
As a result, it is an ideal buyer for manufacturers. As a result, once a supplier begins supplying
Nestle, they never interfere with them or try to bargain or control their rates. Nestle, on the other
hand, keeps its suppliers in high regard and looks after them (Tavsar, 2013). To ensure the
consistency of the raw materials, Nestle prefers long-term relationships with its suppliers. If Nestle
wants to change suppliers, the cost of switching is moderate because it would have to enter into
new contracts and work to ensure quality from the new supplier.
Bargaining Power of Buyers – High
Buyers have a lot of bargaining power because of the high degree of rivalry. They can quickly turn
from one brand to another, so Nestle or any other brand attempting to sway the market or lift prices
should be avoided. Consumers have a low cost of switching. Similar goods are sold by a variety
of firms. Nestle understands the importance of the buyer's power and works hard to ensure that
customers are satisfied.
Threat of Substitutes – High
Many Nestle products, such as bottled water and pasteurized milk, have readily available
substitutes. Many of the items, such as baby food, can be made at home. There have also been
claims that some of Nestle's goods are unhealthy to consume. As a result, the selling of substitutes
has increased among health-conscious people. Nestle aspires to be the best. Nestle endeavors to
highpoint the vigorous features of its harvests so as to challenge the alternates. Thus, the danger
of alternates is high for Nestle.
6.a)
Customer lifetime value: (for kitkat)
Number of customers
Year 1
2021
100,000
Year 2
2022
60,000
Year 3
2023
42,000
Retention rate
60%
70%
80%
Orders per year
Average order size
Total revenue
1.8
$90
$16,200,000
2.5
$95
$14,250,000
3.0
$100
$12,600,000
Cost
Cost of sales
Acquisition cost
Marketing costs
Total cost
70%
$11,340,000
$55
$5,500,000
$16,840,000
65%
$9,262,500
$20
$1,200,000
$10,462,500
65%
$8,190,000
$20
$840,000
$9,030,000
Gross profit
Discount rate
Net present value
Cumulative NPV
profit
Customer lifetime
value
($640,000)
1
($640,000)
($640,000)
$3,787,500
1.16
$3,265,086
$2,625,086
$3,570 ,000
1.35
$2,644,444
$5,269,531
($6)
$26
$53
the formal equation for calculating customer lifetime value :
In this CLV equation:
CR = customer revenues
C = customer costs
R = retention rate
d = discount rate
AC = acquisition rate
6.b)
Customer equity: (kitkat)
Customer equity with marketing
Year 1
2021
Year 2
2022
Year 3
2023
Customer base at the start of the
year
New customer acquired
Lost customers
Customer base at the end of the year
Average customer numbers in the
year
Profit per customer pa
Gross profit contribution for average
customer numbers
Annual total cost of customer
marketing(N/A)
Net profit contribution after
marketing cost
Compounding discount rate
Discounted rate profit contribution
Customer equity with marketing
For kitkat:
1000
700
520
100
400
700
850
100
280
520
610
100
208
412
466
2000
1,700,000
2000
1,220,000
2000
932,000
0
0
0
1,700,000
1,220,000
932,000
1.10
1,545,455
7,357,407
1.21
1,008,264
1.33
700,225
7.
Customer product profitability analysis:
Customer 1
Customer 2
customer 3
Highly Profitable
Product
Products
Kinley
✓
✓
kitkat
✓
✓
Nescafe
✓
Maggi
✓
✓
Maybelline
Garnier
✓
✓
✓
✓
Profitable Product
Purelife
✓
✓
Cerelac
-
Kellogg's
special K
-
Beta Food
dog
High Profit
Customer
Mixed Bag
Customer
-
Unprofitable Product
-
Highly Unprofitable
Product
Losing
Customer