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Nestle Promotion Strategy. – Writing 1 Casestudy February 7, 2010 Nestle constitutes the bigger corporation in the field of research and technology of foods. Her annual investment in Research and Growth is the biggest of the branch while her personnel in this sector exceeds the 3. 000 people.
The Nestle Research Centre in Lausanne, where is carried out the basic research, is recognized globally as one of the leading centres of researches in his type with above 300 publications in valid scientific publications each year. The main activity of Group Nestle, which constitutes the bigger enterprise of foodstuffs worldwide, is focused in the sector the general and special human diet.
Even if initially her work was based on the milk and the special products of diet for children, many still products were added in her activities with the byway of years, such as chocolates and (CRUNCH, CAILLER, KIT KAT, AFTER EIGHT, SMARTIES etc), coffee (NESCAFE, etc), drinks (NESTEA, NESQUIK etc), cooking products (soups, broths and mash MAGGI, pastas BUITONI, tins LI[B]BY’S etc), products of refrigerator (yoghurt CHAMBOURCY, ice-creams NESTLE, MOTTA and CAMY, desserts etc), natural metal water (PERRIER, VITTEL, SAN PELLEGRINO etc), frozen products (LEAN CUISINE) and products of cerials (FITNESS, CLUSTERS, CHEERIOS etc).
Also,in our days NESTLE is taken action in the sector of products of diet of small domestic animals (FRISKIES, GOURMET, FELIX etc), as in the sectors of ophthalmologic (ALCON, OPTI – FREE etc), dermatological pharmaceutical and cosmetic products (NUTRADERM, BENZAC etc). In Greece, Nestle has presence above 100 years and constitutes today one from the bigger industrial companies of foods and drinks. The group Nestle in Greece is today constituted by the companies NESTLE GREECE S. A, NESTLE GREECE ICE-CREAMS S. A, GROUP of CERIALS GREECE. and ALCON INTERNATIONAL GREECE LTD, has totally in 4 factories and occupies in total 1350 people.
For the 2006 it realised turnover of 460,6 millions of Euros, with profits above 70 millions of Euros. Chairman and Directing Adviser of Group in Greece is Mr Evangelos Kaloysis which, then long-lasting international military service in the maximum levels of Nestle, undertook also the responsibility of wider region of South-eastern Europe that includes the emerging markets of Albania, Bulgaria and FYROM, as well as Cyprus. It should be marked that the bigger percentage of annual turnover of Group in our country makes from products of factories of Greece.
In this assignment we examine and analyze the promotion strategy for the product of Nestle which is named Fitness nestle and it is breakfast cereals mainly for women. The fitness product is the best for women ‘line’. Fitness breakfast cereal helps women manage their line in a sensible way. Fitness helps women not only take off weight but also keep it off as it is made with delicious whole grain flakes. Research shows that women who eat more wholegrain tend to weigh less and are less likely to gain weight over time. Fitness also contains essential vitamins and minerals.
Analytically the ingredients for the product are Kellogg’s Special K Cereal (51%) (Rice, Wheat {Wholewheat, Wheat Flour}, Sugar, Wheat Gluten, Defatted Wheatgerm, Dried Skimmed Milk, Salt, Barley Malt Flavouring, Vitamin C, Niacin, Iron, Vitamin B6, Riboflavin (B2), Thiamin (B1), Folic Acid, Vitamin B12), Glucose Syrup, Chocolate Pieces (11%) (Cocoa Mass, Sugar, Emulsifier {Soy Lecithin}), Fructose, Dextrose, Sugar, Humectant (Sorbitol, Glycerol), Vegetable Oil, Emulsifier (Soy Lecithin), Antioxidant (E320). First of all it will be defined the target audience.
Geographically the whole region of Greece will be in target. Everywhere in Greece exists a supermarket which offers Nestle Fitness product line must be part of the target. In conclusion geographically there are no limits. Thus , all city sizes will be concluded. In order to be more specific for the target audience will be defined the demographic characteristics. Firstly both gender can use the product, but mainly women are the potential and major consumers, thus women will be focused. Fitness product line is addressed to individuals from 18 to 37 years old.
Family status for these individuals is young, single, young married with no children and young divorced. Income segment target is >= 10000 annual salary. Demographically exist no other constraints. Phychographically the target will consist individuals with lice style status upon the general average and their personality will be characterized as ambitious and selfish. Behaviouristic the target audience will be strong loyal , heavy and regular users, and their market factor sensitivity is more advertising. The promotion strategy will be planned only for a part of the product line of fitness, which need a push.
Fitness bars is a line of 7 different flavours. Each flavour has a unique taste but common scope. The price of one package is 2. 57 euros and contains 6 bars. The main competitor is kellogs, which sales the same package in different flavours 2,61 euros. In order to gain a competitive advantage and gain a bigger market share Nestle will apply specific strategy to the promotion. In the spectrum of promotion strategy, this method contains different types of energies. First of all the action , which will take place into the place a consumer can purchase the product.
Mostly this point will be in supermarkets or other types of stores where Fitnees bars are sold. A hard-paper stand will be set at the 300 biggest supermarkets. That stand will announce to the potential customer the special offer of the product. That offer will be a 0,30 euros discount and a membership to a contest. The action should represent AIDA’s principles. Attention, Interest, Desire, Action. Attention will be paid by the effectiveness of the stand. Stand will be constructed like a huge Fitness bar with horizontal sleeves and attractive colours.
The basic colour for the background will be yellow, because has high impact to catch consumers eye particularly when used with black. After, the board will be in green, because this colour is a symbol of health and freshness and popular for mini products. Inside the packing will be concluded a coupon, in which the purchaser will have the possibility to take part to a contest with a winning prize of free annual membership fee in a popular gym. For this action the costs are: 5000 euros for coupon production, 25000 euros for the stands and no cost for the gym because of a deal.
The second part of the promotion strategy, which will follow after the 20 days length of the first action is to promote the fitness bar product line to potential consumers through scientific dietician and nutritionist persons. In Greece exist around 1. 000 people with the previous characteristics. The action will be focused only to the top 150. These persons will be supplied with promotion material, which will explain in scientific terms product healthy characteristics. More specific, Nestle will provide material, which will illustrate the whole product line of the bars and give them as a present posts with a subject from the health world.
In addition 10 packages of the product will be send to these persons. The costs of these are: 1500 euros for the material, 3000 for the posts. Finally the last action of the promotion strategy is to approach the 100 biggest gyms around Greece and offer them the range of the bar product with the effectiveness of 50% discount. In that way, Nestle makes two goals. First net sales, even with a good discount and secondly a presentation of the product into the place where the target audience mostly can be found. Totally the costs of these promotion actions will be around 35000 euros. According the desired sales results, costs sound tiny.
Desired results are a market share boost of 5% for the next 6 months and an estimated 6% sales growth for the next year. References “NestleWatch. org”. NestleWatch. org. http://www. nestlewatch. org. Retrieved 2010-01-08. “FoodAndDrinkEurope. com”. FoodAndDrinkEurope. com. 2007-12-05. http://www. foodanddrinkeurope. com/news/ng. asp? n=81829-nestle-vivartia-milk-prices. Retrieved 2010-01-08. “Nestle: Following the Customers’ Tracks with Google Analytics”. Google Analytics. Archived from the original on 2007-02-20. http://web. archive. org/web/20070220225956/http://www. google. com/analytics/case_study_nestle. html. Retrieved 2007-02-21