Product strategy - Nestle Company

35
Introduction

Transcript of Product strategy - Nestle Company

Page 1: Product strategy - Nestle Company

Introduction

Page 2: Product strategy - Nestle Company

Company Background

Swiss Transnational food and beverage company

Formed in 1905 by Henri Nestle

447 factories in 194 countries

Listed No 1 in 2011 as the world’s most profitable corporation

Variety of products

Page 3: Product strategy - Nestle Company

Different products/brands marketed by the company

Page 4: Product strategy - Nestle Company
Page 5: Product strategy - Nestle Company

Product Categories Brands Name

Infant formula Lactogen

Hot Cereals Nestum

Breakfast Cereals Koko Crunch, Honey Stars, Cornflakes

Health Fortified Drinks Milo

Milk Powder Nespray, Klim, Everyday

Sweetened Condensed Milk Milkmaid, Teapot

Instant Coffee Nescafe

Noodles Maggi

Cold Sauces Maggi Chilli and Tomato sauce

Chocolate Kit Kat, Smarties, Nestle Crunch

Page 6: Product strategy - Nestle Company

Brand Identity• The brand itself plays an important role.• First contact with customers - nutritious

lifestyle.• Nestlé’s logo was an important part of the

company’s corporate identity.• The 'nest' was a graphic translation of Henri

Nestle's name.• The familiar bird’s nest logo continues to be

used on Nestlé products worldwide.

Page 7: Product strategy - Nestle Company
Page 8: Product strategy - Nestle Company

ProsperityCare

Purity Goodness

Colour of the Nestle logo : Blue

Page 9: Product strategy - Nestle Company

Product Strategy

Page 10: Product strategy - Nestle Company

Beverages Milk products

Chocolates Breakfast cereals

Page 11: Product strategy - Nestle Company

Chocobrick

Page 12: Product strategy - Nestle Company

Sources : Nestle internal records

Product Categories Nestle Brands Competitors Brands Market Leader

Breakfast Cereals Nestle Corn Flakes, Koko Crunch

Kellogg’s Cornflakes and Frosties

Nestle Corn Flakes

Chocolates Kit Kat, Smarties, Nestle Crunch

Cadbury, M&M, and Snickers.

Cadbury

Page 13: Product strategy - Nestle Company
Page 14: Product strategy - Nestle Company
Page 15: Product strategy - Nestle Company
Page 16: Product strategy - Nestle Company

Physical Product

PrototypeBy Yuen Weng KIn

Page 17: Product strategy - Nestle Company

2D view

Page 18: Product strategy - Nestle Company

3D VIEW

Page 19: Product strategy - Nestle Company

ColourWhy we choose yellow?

-It is a powerful colour-Able to attract customer’s attention-Easier to recall when we promote our product again in the future

Page 20: Product strategy - Nestle Company

Characteristics of our container

• Cuboid-Can store more objects- Prevent from sliding off easily

• Plastic container-Lighter-Not fragile compare to glass container

Page 21: Product strategy - Nestle Company

2.2 Price StrategyFor setting price,Internal Consideration- applying marketing

mixExternal Consideration- monopolistic

competition market (Example: Crunch & KitKat)

So, the price of Chocbrick is set at RM3.00 for each.

Page 22: Product strategy - Nestle Company

Using market penetration pricing strategy to attract buyers because:-

Higher price sensitive in current market Low price makes a market growthUsing promotional pricing strategy by setting

price below the list price By applying special event pricing and loss

leaders

Page 23: Product strategy - Nestle Company

PLACE STRATEGY

Page 24: Product strategy - Nestle Company

Direct Marketing Channel

• Nestle channel is known as strong due to good marketing and sales network

• Has its own distribution network• Transport the Chocbrick at major

regional sales offices, which are situated at different cities

• Become available through the advertisement

• Focus on the inventory management in order to satisfy customer needs

Page 25: Product strategy - Nestle Company

Retailer channel Display in supermarket such as Giant and 99

Speedmart Low cost and provide self service store Customer will bought frequently the

convenience good Display in convenience store such as 7-Eleven

and KK Mart Small store located near residential area that

are open long hours 7 day a week Regularly introduce trade discount and various

tactics to keep the distribution motivated

Page 26: Product strategy - Nestle Company

Promotion Strategy

Page 27: Product strategy - Nestle Company

Promotion Mix

Advertising Sales Promotion Public Relation Direct Marketing Personal Selling

Page 28: Product strategy - Nestle Company

Advertising

1. Through Social Media Webpage Selected TV Channel Radio Road Shows

2. Deliver information of Brands name Products

Page 29: Product strategy - Nestle Company

Why we are using advertising as one of our promotion strategy???

Able to introduce the products to wide market

Customer get know well about our products

Brands positioning in our customer’s mind

Page 30: Product strategy - Nestle Company

Sales Promotion

A very good strategy for introducing the new products

Lower price compared to other competitors

Get the attention from the customer by offering the lower price

Page 31: Product strategy - Nestle Company

Public Relation

Example: Be a sponsor in an event that related to

our brand or product

Through this way: We are able to create a good image to

customers We are able to create newsworthy

information to the public

Page 32: Product strategy - Nestle Company

Conclusion

Page 33: Product strategy - Nestle Company

Target Market- children, adolescents, adults and senior citizens

Chocbricks Design- yellow colour plastic cuboid shape container and polar bear on the first outlook

Market Penetration Strategy , RM3.00 each Retailer Channel- Offering at low price

- Can purchase at convenient way

Page 34: Product strategy - Nestle Company
Page 35: Product strategy - Nestle Company

Three levels of product i) Core Benefits -breakfast ii)Actual Product -Brand name: Nestle -Design: Cuboid than sphere -Nutrition value iii)Augmented Product -Guarantee : refund -Accessibility: easy to buy it at nearby

stores