Winning in a Connected World
Transcript of Winning in a Connected World
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Winning in a ConnectedWorld
Tom BudayGlobal Head of Marketing and Consumer Communication
Pete BlackshawGlobal Head of Digital Marketing and Social Media
Michelle AlvarilloGlobal Category Leader, Dairy Strategic Business Unit
Sebastien SzczepaniakGlobal Head of Sales and eBusiness Unit
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This presentation contains forward looking statements which
reflect Management’s current views and estimates. The
forward looking statements involve certain risks and
uncertainties that could cause actual results to differ
materially from those contained in the forward looking
statements. Potential risks and uncertainties include such
factors as general economic conditions, foreign exchange
fluctuations, competitive product and pricing pressures and
regulatory developments.
Disclaimer
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EXCELLENCE IN CONSUMER
COMMUNICATION
DIGITALLY-POWERED
INNOVATION
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DRIVING TO CONVERSION ON
ECOMMERCE
Our Digital and eCommerce Growth Agenda
OUR AMBITION: TO BE THE INDUSTRY LEADERS IN DIGITAL AND ECOMMERCE
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Excellence in Consumer Communication
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EXAMPLES FROM ANECDOTES TO
SCALED PERFORMANCE
SCORECARD
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Dramatically Reshaping Brand Perception: Lean Cuisine, USA
6.5 million video views
+33% brand perception
RESULTS
+300bps market share since relaunch
KEY SUCCESS FACTORS
Convinced women the brand understands what is
important to them
Drove positive conversations and sentiment
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Inspiring Women to Make a Difference throughCooking: Maggi Diaries, Middle East
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Inspiring Women to Make a Difference throughCooking: Maggi Diaries, Middle East
35 million video views
Volume up 90% in UAE, 14% in Kuwait,
10% in Lebanon
RESULTS
All time high market share at 85%; +500bps
KEY SUCCESS FACTORS
Locally relevant content, powered with deep
insight on culture and aspiration.
Maggi as catalyst to make a difference in everyday
cooking.
You &
MAKE THE DIFFERENCE
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Award Winning Mobile Site – Nestlé.com
RESULTS
#1 on The World's Best Corporate Websites -
Bowen Craggs & Co. Index of Online Excellence
2016
KEY SUCCESS FACTORS
Design and navigation that puts usability first
Actively managed FAQ section signals
transparency and openness to dialogue
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RESPECT FOR TIMELESS
FUNDAMENTALS
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From Anecdotes to Scaled PerformanceBUILDING CAPABILITIES GLOBALLY AND STAYING AHEAD
Brand Building the Nestlé Way
(BBNW)
CLOSE PARTNERSHIP WITH
KEY PLATFORM OWNERS
RELENTLESS TESTING,
LEARNING AND SHARING
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Relentless Testing, Learning and Sharing
Global Digital & Social Media Team works with pilot markets to build guidance
Learnings distributed across markets for implementation at local level
John Lewis, Nestlé and Tesco first
UK brands to use Pinterest adsBy Omar Oakes
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Testing, Learning and Adapting: Coffee-Mate Natural Bliss
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2015 RESULTS
4.1 million video views, 80% earned
media impression
+3% brand awareness
2016 RESULTS
5.9 million video views, 53% earned
media impression
+23% brand awareness
2015 2016
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Mobile Feed Optimized Creative: Coffee-Mate Natural Bliss
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Original TV Spot
Optimized Video
“Nestle took their TV ad for Natural Bliss Coffee Creamer and, in less than
a day, edited it for mobile feed by creating a new opening and adding text
overlays to relay their message without sound.
They showed both the original TV ad and the mobile ad on Facebook.
The original TV ad drove a 4-point increase in ad recall.
The mobile optimized version, however, drove an even stronger 10
point increase in ad recall and a 7 point increase in product
awareness.”
Source: Facebook results based on Nielsen Brand Effect studies, Coffee-Mate Natural Bliss campaign, Dec 2015
RESULTS
Ad
Recall
Product
Awareness
4 pts
10 pts
2 pts
7 pts
Optimized
Video
Original
TV Spot
Sheryl Sandberg,
COO, Facebook
Facebook Q1 2016 Earnings Call,
April 2016
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Recognition from Key Global Partners
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“For over four years, Nestle has been
one of our most advanced and
progressive business partners across
ad formats, research methodology,
platform experimentation, and
capability building. And their results
over-index the industry.”
- Carolyn Everson, VP Global
Marketing Solutions, Facebook
“Nestlé have long been highly effective
using traditional media to build brands
and communicate with consumers. In a
few short years we have seen a big
shift. More agile, innovative, more
digital and emerging as a leader in the
consumer packaged goods industry. ”
- Matt Britton, President of EMEA
Business & Operations Google
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Digital Working
Media
SHIFTING NON-WORKING TO
WORKING DIGITAL MEDIA
Digital Non-
Working Media
2014 2015
29%
71%
25%
75%
Source: Nestlé Internal Data, 2015
ABOVE INDUSTRY SOCIAL
CREATIVE IMPACT
Source: Nielsen Brand Effect Studies, NIM US
Ad
Recall
Brand
Favourability
Purchase
Intent
1
4
10
17
2
6
0US CPG
Norm
Nestlé
1
Points
PROGRAMMATIC BUYING ABOVE
INDUSTRY AVERAGE
Source: E-Marketer – UK, US, China: Programmatic Digital Display Ad Spending 2013-16
Nestlé Internal Data, 2015
Industry
Average
Nestlé
32%
44%
UK US CHINA
65%
62%59%
72%
18%
GLOBAL
47%
DIGITAL ROI
OUTPERFORMING TV ROI
Source: Analytic Partners, Marketing Mix Modelling
TV ROIDigital ROI
Maggi Magic
Sarap
Source: Effie Effectiveness Index, April 2016
BEST MARKETER IN FOOD
INDUSTRY
Points
Nestlé
Mondelez Int’l
McDonald’s
Unilever
Pepsico
Mars
ETI
Danone
Alcorp SAA
Labiza
DIGITAL MEDIA SPEND ABOVE
FMCG INDUSTY AVERAGE
Source: Nestlé Internal Data, 2015
Dig
ital M
edia
Spend
%
0%
5%
10%
15%
20%
25%
30%
2012 2013 2014 2015
Nestlé
FMCG
Average
Our Scorecard to Date
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Our Scorecard to Date
DIGITAL MEDIA SPEND ABOVE FMCG INDUSTY
AVERAGE
Source: Nestlé Internal Data, 2015
Dig
ital M
edia
Spend
%
0%
5%
10%
15%
20%
25%
30%
2012 2013 2014 2015
Nestlé
FMCG Average
BEST MARKETER IN FOOD INDUSTRY
Points
Nestlé
Mondelez Int’l
McDonald’s
Unilever
Pepsico
Mars
ETI
Danone
Alcorp SAA
Labiza
Source: Effie Effectiveness Index, April 2016
ABOVE INDUSTRY SOCIAL CREATIVE IMPACT
Source: Nielsen Brand Effect Studies, NIM US
Ad
Recall
Brand Favourability
Purchase
Intent 4
10
17
2
6
0
US CPG
Norm
Nestlé1
Points
SHIFTING NON-WORKING TO WORKING DIGITAL
MEDIA
4
Digital Working
Media
Digital Non-
Working
Media
2014 2015
29%
71%
25%
75%
Source: Nestlé Internal Data, 2015
PROGRAMMATIC BUYING ABOVE INDUSTRY
AVERAGE
4
Nestlé
Industry
Average
Source: E-Marketer – UK, US, China: Programmatic Digital Display Ad Spending 2013-
16 Nestlé Internal Data, 2015
32%44%
UK US CHINA
65%62%
59%
72%
18%
47%
GLOBAL
DIGITAL ROI OUTPERFORMING TV ROI
4
Digital ROI TV ROI
Source: Analytic Partners, Marketing Mix Modelling
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Digital Working
Media
SHIFTING NON-WORKING TO
WORKING DIGITAL MEDIA
Digital Non-
Working Media
2014 2015
29%
71%
25%
75%
Source: Nestlé Internal Data, 2015
ABOVE INDUSTRY SOCIAL
CREATIVE IMPACT
Source: Nielsen Brand Effect Studies, NIM US
Ad
Recall
Brand
Favourability
Purchase
Intent
1
4
10
17
2
6
0US CPG
Norm
Nestlé
1
Points
PROGRAMMATIC BUYING ABOVE
INDUSTRY AVERAGE
Source: E-Marketer – UK, US, China: Programmatic Digital Display Ad Spending 2013-16
Nestlé Internal Data, 2015
Industry
Average
Nestlé
32%
44%
UK US CHINA
65%
62%59%
72%
18%
GLOBAL
47%
DIGITAL ROI
OUTPERFORMING TV ROI
Source: Analytic Partners, Marketing Mix Modelling
TV ROIDigital ROI
Maggi Magic
Sarap
Source: Effie Effectiveness Index, April 2016
BEST MARKETER IN FOOD
INDUSTRY
Points
Nestlé
Mondelez Int’l
McDonald’s
Unilever
Pepsico
Mars
ETI
Danone
Alcorp SAA
Labiza
DIGITAL MEDIA SPEND ABOVE
FMCG INDUSTY AVERAGE
Source: Nestlé Internal Data, 2015
Dig
ital M
edia
Spend
%
0%
5%
10%
15%
20%
25%
30%
2012 2013 2014 2015
Nestlé
FMCG
Average
Our Scorecard to Date
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DIGITALLY POWERED
INNOVATION
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Our Digital Innovation Enablers
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External
Innovation
Open
Innovation
Internal
Innovation
Internal
Innovation
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A Funny Thing Happened While in the Valley
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Cultural Transformation in a Digital World
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Agility, Results and Digital First Mindset
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Brand Managers
Media Managers
Sales Managers
Digital/eComm Leads
Impact on Markets
Program/Mindset Now Embedded in 23 Nestle Markets
91 graduates 47 Participating markets Roles Upon Return
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DAT Projects: Transforming Our Business
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KITCHEN ON DEMAND
Developed “Uber of Kitchens”
plan to leverage excess
capacity of Nestle kitchens for
on-demand content, from
videos to live streaming.
DIGITAL HEALTH SERVICES
Proposed partnerships with
technology providers to
address issues in obesity, aging
and general health, tying in with
existing NHS product portfolio.
MOBILE LOYALTY
Developed mobile plan for
traditional retailers in Central
and West Africa including
messaging and on-ground
activation.
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Our Digital Innovation Enablers
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External
Innovation
Internal
Innovation
Internal
Innovation
Open
Innovation
External
Innovation
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NUTRITION AND FOOD
SOLUTIONS
EVERYWHERE
COMMERCE
ENHANCED BRAND
EXPERIENCES
Offer consumers new
digital / eCommerce
enabled services
Leverage connected
devices to improve
quality of life
New direct-
to-consumer models
• 30+ high potential
solutions tested to-
date
• >1/3 have scaled
Our External Innovation Focus is Increasing
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Strong Network Established to Sense and Inform
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EMERGING
PLATFORMS
ACCELERATORS &
INCUBATORS
INDUSTRY
THINK TANKS
VENTURE
CAPITALISTS
START UPS
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Increasing Engagement with Prenatal Moms
Personalized experiences
Millennial focused
Fast growing app
World class content
Trusted brand
+
START HEALTHY, STAY HEALTHY: Provide unparalleled
support for moms in their baby’s 1st 1000 days
• MyGerber content
performs 220%
better on Ovia
• MyGerber content
performs 250%
better on Ovia than
other Ovia content
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Exploring New Food Delivery and Purchase Models
GROCERY DELIVERY
RECIPE BOX DELIVERYConsumers seeking
convenience/ease
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Enriching brand experience by providing layers of service beyond the product
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New MILO App
Mum’s nutrition and
performance dashboard
New MILO wearable device
Nutrition and performance tracking
Nutritional
advice/coaching &
Monitoring
Supporting parents to raise healthy, active kidsTHE MILO PROGRAM
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Providing world class sports coaching, nutritional advice and inspirational stories
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Dynamic content platform
Delivering nutrition, sports &
success stories.
New MILO «MEDIA»
via augmented reality on pack.
MILO grassroots sports programs
Skills acquisition sports events & camps.
Consumer
engagement &
skills acquisition
programs
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LEARN SKILLS
IMPROVE NUTRITION
TRACK PROGRESS
BUILD A CHAMPION
An integrated and immersive experience for parents and kids
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MILO Champions Program Demo
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Delivering competitive advantage: Encouraging early results in the prime mover Australian market
Consistent usage of around 80% of the app users
Over 2mio impressions online
20% awareness among AUS Household
Consolidated circulation of 14.5mio in earned media
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Growing Our Presence, Accelerating Our Work
Expanded cross-functional team
New, high profile innovation space
Meaningful experimentation funds
Business-sponsored missions
Globally focused
New, Expanded SVIO Offices - San Francisco
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Our Digital Innovation Enablers
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External
Innovation
Internal
Innovation
Internal
Innovation
External
InnovationOpen
Innovation
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New Global and Public Open Innovation Platform
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Nestlé’s global collaboration
program
Soft launch planned in June 2016
Enables rapid sharing of ideas,
creative designs and innovative
solutions in response to stated
business challenges
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How We Connect the Dots
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SHARING ECONOMY
PRINCIPLESINTERNAL SOCIAL MEDIAGLOBAL NETWORKING
Relentless Sharing and Innovation
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DRIVING TO CONVERSION ON
ECOMMERCE
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Accelerated Growth – eCommerce Already the 4th LargestNestlé Market
• eCommerce represents 3.9% of Nestlé Group sales
in 2015 (up by +100 bps since 2012)
• Total Nestle eCommerce sales growth 2015 vs 2014
(at constant currency): + 20%
• CAGR 2011 – 2015: +16%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
FY 2012 FY 2013 FY 2014 FY 2015
3.9% of total sales
3.4% of total sales
3.3% of total sales
2.9% of total sales
Scope: Nestlé Group, as reported figures
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Consumer Journey has Changed and is More and More Complex
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Source: Winning the New Digital Consumer with Hyper-Relevance – Cisco January 2015
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Our Strategy: Leading Online Engagement and Conversion
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Drive brand consideration
with cutting edge eContentBoosting conversion across
lower funnel touchpoints
Shaping the industry in
mobile commerce
Creating a winning
ecosystem of partnersExecuting at AND above
market level with scale
Revolutionizing purchase &
consumer data acquisition
ECONTENTPLAYBOOK
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1. Driving Brand Consideration with Cutting Edge Content
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“Above market level Service to run End-to-End eContent lifecycle”
Creation Aggregation Customization Distribution
eContent Factory
30 000 pieces of content pushed
to D2C/eRetailers in 2015
70 000 pieces of content to be
created in 2016 (20 brands)
eContent factory taking over
creation and distribution in 2017
BRICKS &
MORTAR
PURE
PLAYERS BRAND.COM OTHERS
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2. Fueling Nestlé Growth with Best in Class Conversion
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“Lower funnel media activation”
SALES
CONVERSION
12%
Nestlé Websites Digital touchpoints
With roll out in 18 key markets / 20% of total touchpoints Nestlé
USD 1bn
potentialin 2016
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3. Shaping the Industry in Mobile Commerce
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“Global Mobile App consumer engagement platform”
Nestlé USA + Infant Nutrition US will be live Q3 2016
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4. Creating a Winning Ecosystem of Strategic Partners
1st to sign a global Amazon Media Group agreement
1st to align an Retail strategic framework
1st to launch an exclusive product on Amazon in US/UK/DE/CN the same day
1st to pilot Paid search inclusive of BuyNow with Google
1st to pilot new eCommerce capabilities with Facebook
1st to launch a global Tmall store with 50 brands from Nestlé worldwide
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6. Executing Winning Strategies and Plans
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Market level
Above Market
Execution of the
eBusiness
Flywheel
Local brands global expansion
Exclusive range and premiumization
Zone lead
Market lead
Global lead
Focus:
60%
Markets to lead
with support from
eBusiness team
Focus:
20%
Focus:
20% Transformational
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5. Revolutionizing Purchase and Consumer Data Acquisition
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“Nesté SmartBuy Artificial Intelligence”
CONVERSION CONSUMER DATA
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LIVE DEMO
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5 Key Takeaways
1We aspire to be industry leader in leveraging digital and ecommerce
to enhance lives, build great brands and accelerate profitable growth
2We are performing ahead of industry peers in driving brand and
business impact on key social platforms
3Our culture encourages and enables rapid testing, learning and
sharing, and scaling success across web, mobile, and ecommerce
4We’re shifting rapidly to an open and collaborative innovation
culture, powered by digital technology
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5We are actively identifying digitally-enabled “service layers” to
strengthen our brands