Product strategy - Nestle Company
Transcript of Product strategy - Nestle Company
Introduction
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
Different products/brands marketed by the 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
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.
ProsperityCare
Purity Goodness
Colour of the Nestle logo : Blue
Product Strategy
Beverages Milk products
Chocolates Breakfast cereals
Chocobrick
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
Physical Product
PrototypeBy Yuen Weng KIn
2D view
3D VIEW
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
Characteristics of our container
• Cuboid-Can store more objects- Prevent from sliding off easily
• Plastic container-Lighter-Not fragile compare to glass container
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.
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
PLACE STRATEGY
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
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
Promotion Strategy
Promotion Mix
Advertising Sales Promotion Public Relation Direct Marketing Personal Selling
Advertising
1. Through Social Media Webpage Selected TV Channel Radio Road Shows
2. Deliver information of Brands name Products
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
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
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
Conclusion
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
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