Product analysis of Nestle

Product analysis of NestleNestl is the largest victuals company in the world, commercializeing over 8,500 brands and 30,000 increases. It operates nearly 500 factories across 5 continents and employs over 200,000 employees worldwide. As the World Food Company, Nestl is the provider of the best food for whatever time of day and for whatever time of your life. Nestl RD Singapore plays an important enjoyment in the development of carrefours for Nestl Nutrition, with focus on creating products with micronutrient fortification to address deficiencies.Nestl has an extensive product mix come outed at many different segments of the food market. The chosen product course for in-depth analysis is Nestl draw products, which is targeted at p arnts of early children ( develop 1 5) and health conscious adult consumers who commit to retain heart and bone health. In the adult family line in specific, the functional milks offer a regurgitate of functional benefits, from cholesterol i nstruction and heart health to bone health.A product mix is the present of all(a) products a developitioningicular seller offers for sale. A product mix consists of various product lines and has a certain width, hold, depth, and consistency. The table below shows the product-mix width and product-line length for Nestl products in Singapore.Product-Mix WidthBaby FoodsMilkCerealsChilled D ventilatey glass CreamConfec-tionery Choco-latesBeveragesCulinary/ FoodsHealthcare NutritionPerfor-mance NutritionPet CareProduct job LengthJunior FoodsGrowing Up MilkBreakfast CerealsYogurt DrinkDrumstickKit KatMiloMaggi NoodlesNutrenPowerBarALPO Dog FoodInfant Cereals rich Cream MilkYogurtMatKoolMilkybarNescafeMaggi PorridgesPeptamenPro Plan Dry FoodAdult MilkTake Home TubsCrunchMaggi StockNestle Ice CreamSmartiesSauces SeasoningsPotongMiloYang Sheng LeNestle GoldRecipe CollectionsUncle TobysThe width of a product mix refers to how many different product lines the company carries. Nestls r ange of product lines includes baby foods, milk, cereals, dairy products, confectionery, ice cream and chocolates, culinary foods and pet care products. Nestl in like manner provides a broad range of nutritional and flavored beverages and offers product line with specific nutritional functions. The length of a product mix refers to the total number of items in the mix. Nestl had an average product length of 2.8. Within the range of Nestls milk products include growing up milk, full cream, filled milk and adult milk. The depth of a product mix refers to how many variants are offered of apiece product in the line. For instance, Nestl adult milk comes in two functional forms (bone and heart health). The consistency of the product mix refers to how closely related the various product lines are in end use, production requirements, distribution transposes, or some separate right smart. Nestls product lines are consistent insofar as they are consumer goods that go through the same dis tribution channels.Company croup expand its business in four ways it can add sensitive product lines, thus widening its product mix it can lengthen each product line it can add much product variants to each product and deepen its product mix or it can pursue more product-line consistency. To distort our targeted market, Nestl can add new product line in the area of elderly health food, thus widening its product mix.In Singapore, the National Mental Health Survey (NMHS) conducted in 2003 reported a prevalence of dementia among the elderly as 5.2% for 60 geezerhood, 6.0% for 65 years, and 13.9% for 75 years. Health Minister Khaw Boon Wan expects the numbers to double by year 2020. fit to research, nutritional deficiencies in elderly are one of the factors influencing their cognitive functioning. In the article Many over-50s not eating properly (The Straits Times, September 2, 2010), the editorialist shared a recent survey results indicating that older Singaporeans are not g etting enough nutrition, with only 1 per cent of 421 respondents aged 50 years old and in a higher place have a balanced diet that meets the recommendations of the Health Promotion Board (HPB).Contrary to common belief, dementia is not an inevitable part of the ageing process and preventive and protective factors can help reduce the risk or delay the onset of dementia (Health Promotion Board). The best way to fight dementia is to maintain a good cognitive function and having a healthy and balanced diet is essential. There is a growing requirement and market for Nestl to get brain-healthy functional foods targeted at the segment of the silver market who desire to retain memory, brain health and have a balanced diet. In Singapore, although there are already a number of brain health supplements targeted at the elderly, fortified food products exacted at this group are lacking.The first originator why Nestls product may be modified to reach the targeted segment is because Nestl Res earch Centre (NRC) is internationally renowned for its work in the food and nutritional sciences. For instance, as milk is particularly sensitive to heat, Nestl developed a soft sterilization of milk that protects the delicate amino acid, lysine and etc in their dairy products. In the article Brain food (The Business Times, December 02, 2009), Fernando Gomez-Pinilla, a professor of neurosurgery and physiological science at UCLA Medical School shared his findings on how dietary factors affect brain function. And he emphasized that Omega-3 fatty acids, with DHA are essential for normal brain function, and has been proven to enhance synaptic plasticity. Through prof Gomezs exploration, he has proven that folates and antioxidants also helped reduce age-related decline in cognitive function. Presently, Nestl offers different milk products fortified with iron, zinc, vitamin A and other micronutrients aimed at addressing specific health deficiencies and they have existing product such as N ESTL NAN infant milk formula that contains DHA and ARA, two important ingredients that support brain development of young children. Nestl Research teams can work on improving the ingredients apply in their existing products and offer milk products fortified with Omega-3 fatty acids, folates and antioxidants aimed at maintaining the cognitive function of the aging population. What is needed is a marketing effort, advertising the new range of products as brain-boosting functional food to the elderly.Next, Nestl had distinctive product lines catering to the take of infant, young children adults who are concerned with their health and athletics who wants a performance boost. Nestl RD Singapore has always been focusing on creating products with micronutrient fortification to address deficiencies, therefore, with Nestls expertness in the field and food and nutritional sciences, they can aim to develop an additional product line with a range of milk products cater for the management of e lderly health, besides, the development of brain healthy fortified food is for the benefit of the aging population in Singapore. In the longer run, Nestl can also stash away a range of new food products such as elderly snacks, healthy food and drinks and healthier culinary products with a different positioning and target the different segments of the silver market.Question 2 (18 marks)In this section, I result move on to discuss how Nestl currently makes use of the marketing mix concepts of pricing, promotional material and distribution channels to reach its key target market for Nestl adult milk products in specific. Their adult milk products are targeted at health-conscious adult consumers who desire to retain heart and bone health.Price is the one element of the marketing mix that produces revenue and communicates to the market the companys intended value positioning of its product or brand. Nestls consumers range from the poorest to the wealthiest, and those seeking for conve nience food or specific alternatives with perceived consumer benefits. These offer opportunities for them to provide high quality nutritious products. (Nestle Management Report, 2007). Nestl has select value pricing through winning loyal customers by charging a fairly low price for a high-quality offering. For instance, Nestl targets the lower berth income group through their generally Positioned Products (PPP) schema, which focuses on creating items that are both highly nutritious and affordable on a daily basis for low-income consumers. Value pricing involves re-engineering their companys operations to become a low-cost producer.Nestl set strategic price items for their products, considering the fact that those with lower incomes have an even greater need for highly nutritious foods. (Nestle Management Report, 2007). Nestl had developed product lines rather than single products and introduce price steps, known as their multi-price point strategy, aimed at capturing all market opportunities. In this way, their targeted consumers are able to trade up and down without trading out of Nestls products. An illustration of their multi-price point strategy for a packet of 900g of adult milk within the product line is estimated as followNestl also stimulate purchase of their milk products through various promotional pricing. For instance, the Nestl milk powder promotion at FairPrice offers a redemption of $10 NTUC FairPrice gift vouchers when customer accumulate $100 worth of Nestl milk powders purchase. The promotion encourages purchase of Nestl milk products within a stipulate time. Nestl also establish finical prices in certain events to draw more customers.Nestl had an unmatched geographic presence in many markets, including emerging markets. Nestl has created very close relationships between their brands and their consumers as intumesce as an in-depth understanding of their consumers and an expertise in related trends. This has also enabled Nestl to develo p local management teams, build local manufacturing and RD and establish local supply-chain initiatives including long-term relationships with suppliers. Internationally, Nestls milk product is available in more than 100 countries throughout the World. (Nestle Management Report, 2007)Nestl used intensive distribution strategy by placing their milk products in as many outlets as possible, knowing that their targeted consumer requires a great deal of location convenience. Intensive distribution increases product availability. In Singapore, we can find Nestls milk product in popular outlets like convenience stores, pharmacies, and all leading supermarkets. These places are situated within 10 minutes walking distance from consumers homes.Marketing communications is the means by which firms attempt to inform, persuade, and remind consumers about the products and brands that they sell and Nestl enhance consumer communication with nutritional messaging. The marketing communications mix con sists of vi major(ip) modes of communication advertising sales promotion events and experiences public relations and publicity direct marketing and personal selling. Advertising can be used to build up a long-term image for a product or trigger quick sales. Nestl employed the used of various media and methods to promote their milk products. Just recently, they started an integrated print/radio ad for Nestl Nesvita Omega positive Acticol milk, advertising it as Singapores 1st and only milk with plant sterols which are shown to lower blood cholesterol. Consumers have been hearing on the radios and seeing in the papers about the benefit of having a lower cholesterol levels associated with consuming Nesvita Omega plus Acticol milk daily.Nestl also drew attention to their products by arranging special events. Nestl held a health exhibition Nestl Presents Health and You 2010 which caters for the young and old. They had activities which appealed to all in the family at the event, includ ing free cholesterol and bone density checks by Nestl Nesvita Omega plus Acticol for the health conscious and health seminars and talks by health professionals, nutritionists and doctors. In addition, Nestl had a strategic partnership with Singapore Heart Foundation (SHF) known as Love Your Heart. The partnership allows Nestl to carry the SHF logo on the Nestl Omega rundown range, endorsing it as the preferred adult milk choice as it has the added benefit of heart health as well as calcium for bone health. Nestl also promotes heart health through the media, such as the Cholesterol Challenge in which the public are invited to lower their bad cholesterol. By becoming part of a special and more personally relevant moment in consumers lives, Nestls involvement with events broadened and deepened the relationship with their target market.Question 3 (28 marks)The brand mention for our new product is Nestl MindFit silver medal, a fortified milk powder offering benefits as follow maintain the cognitive function of elderly by lag down and stabilizing age-related brain decline and provide specific nutritional food value for a balanced diet. Our target segment of the silver market for the Nestl MindFit capital is elderly who desire to retain memory, brain health and have a balanced diet. This segment can be described demographically by age (50-55 and older). Nestl strategy is based on a positioning of product differentiation.Product is the first and most important element of the marketing mix. Packaging is a major styling weapon that provides the buyers first encounter with the product and is capable of either turning the buyer on or off (Kotler et al, 2009). Packaging is defined as all the activities of designing and producing the container for a product. We pass on introduce elegant gold and silver-trim package container as we wanted a sophisticated-looking package that reflects the quality of Nestl MindFit argent. A good packaging helps to identify our brand and convey descriptive and persuasive information to our target consumers. Functionally, structural design is crucial. We make out that resealability, freshness and easy-to-open and close packaging are of huge importance to the elderly consumers, and has incorporated these packaging innovations in our new product. The label on our package will carry our brand name, logo and the Nestl nutritional compass that provides our consumers with tips and nutritional facts that guide them towards informed choices about their diet. We will also have a picture of a sharp-looking senior ambassador in his 50s on the product label this makes it easier for the elderly to distinguish our product from other brands on the shelves.Pricing decisions must be consistent with the firms marketing strategy, target markets, and brand positioning. The Nestl MindFit Silver will be introduced at $18 estimated retail price per 400g tin and we will use several pricing techniques to stimulate purchases. In the first 6 months of product launch, we will offer a cash rebates of $4 to draw more first-time customers. We expect to come up with more variations of the Nestl MindFit Silver, such as cereals, excerption of more flavorings and priced them differently to meet the needs of more consumers. We will also establish special prices in continuative with HPBs dementia campaign to draw more customers.Marketing channels are sets of interdependent organizations involved in the process of making a product available for use or consumption. Our channel strategy is to use selective distribution, marketing Nestl MindFit Silver through Hospital pharmacies, selected Unity Pharmacies, Guardian and Watsons stores, selected NTUC Fairprice, and selected Cold Storage outlets. By doing so, we can gain adequate market coverage with more control and less cost than intensive distribution. As we are targeting the elderly consumers, we implemented home delivery as an additional point of access. This is because we unders tand that some elderly has difficulty going out to buy groceries due to health problems. Since the awareness of nutrition service for cognitive health is our objective, other channels of distribution could include local broadcast media or public forums at community centre. Place should take into account the convenience of the product to the consumer and where the consumer can obtain it most readily. In support of channel partners, we will provide full-color posters displaying the picture and key benefits of Nestl MindFit Silver. Our training staff will work with retail sales personnel to explain the benefit of the product. Finally, we plan to arrange special payment terms for retailers that place volume orders with us.Marketers need to creatively employ multiple forms of communications to effectively reach and influence target markets. The marketing communications mix consists of six major modes of communication advertising sales promotion events and experiences public relations and publicity direct marketing and personal selling. We will make use of advertising sales promotion events and experiences public relations and publicity to market Nestl MindFit Silver to the targeted segment of the silver market.We will start an integrated television, print and radio ads targeting the elderly. TV advertising is an effective means of vividly demonstrating our product attributes and persuasively explaining their like benefits to the elderly. Our TV ad will show a smart looking elderly man sharing with his friends about the benefits of Nestl MindFit Silver, and how the milk product help him to stop sharp and alert. This is a creative way to reinforce the message that Nestl MindFit Silver help maintain the cognitive functions in elderly. Out print ads on newsprint and magazines can provide much more product details and can also effectively communicate user and usage imagery. Our radio ad will add a tag line promoting the Nestl MindFit Silver as a brain healthy food fo r the aged parents.As the multimedia advertising efforts continues, we will also distribute new point-of-purchase displays to support our retailers and increase the number of spontaneous buying decision. We will add consumer sales promotions such as distributing samples to elderly at the store and we will organize contest offering prizes such as cash and holiday trips as a result of purchasing our products within the specified time period.We will also participate in the 50plus Expo, a consumer fair for the elderly organized by the Council for Third Age. The expo is targeted for those aged 50 and above and is devoted to shopping, performances, talks, demonstrations and more. We will educate consumers on the benefits of drinking Nestl MindFit Silver as a daily healthy beverage and at the same time, generate channel support for our product launch.Nestl has been actively involved in sponsorships of a variety of causes. A sponsored event must meet the marketing objectives and communicati on strategy, and the audience delivered by the event must match the target market of our product. Nestl will sponsor the Health Promotion Board (HPB)s Dementia Awareness Campaign. To raise awareness of dementia, HPB has air on Channel 8 and Suria a short film on dementia that is being directed by local director, Royston Tan. Other activities in conjunction with the campaign include informative talks held at Tan Tock Seng Hospital, shopping centre, hotels, and public library. Nestl can strategically identify itself at the events using banners and signs advertising Nestl MindFit Silver as the top brain food choice for active seniors. Nestl will also provide free product samples at the events to generate buying crowds. loving network such as Facebook has become an important force in marketing. A key aspect of social networks is word of mouth. Consumers talk about stacks of brands each day and Facebook offer exposure and the targeted market are more likely to spread the brand message. IT classes have opened up a entirely new world for the elderly who learn how to surf internet and use Facebook and these elderly are becoming more internet savvy and Facebook is a popular social network among them. To reach our targeted market, we will set up a Facebook page for Nestl MindFit Silver, and will post updates on our latest promotions, contests, events and generate thread discussion. Our aim is that more elderly can be linked to our Facebook page, to learn more about our products, and share their feedback on our product.We believed that an integrated marketing communications (IMC) can produce stronger message consistency and greater sales impacts as it forces management to think about every way the customers comes in contact with our product. IMC should improve our companys ability to reach the right customers with the right messages at the right time and in the right place. (Kotler et al, 2009).