We accept

Product analysis of Nestle

Nestlé is the greatest food company on the planet, marketing over 8, 500 brands and 30, 000 products. It manages practically 500 factories across 5 continents and uses over 200, 000 employees worldwide. As the globe Food Company, Nestlé is the professional of the greatest food for whatever period and for whatever time of your life. Nestlé R&D Singapore performs an important role in the development of products for Nestlé Nutrition, with give attention to creating products with micronutrient fortification to handle deficiencies.

Nestlé has an extensive product mixture targeted at numerous segments of the market. The chosen product category for in-depth analysis is Nestlé milk products, which is directed at parents of small children (time 1 - 5) and health conscious adult consumers who want to retain center and bone health. Inside the adult category in specific, the functional milks offer a range of functional benefits, from cholesterol management and heart health to bone health.

A product combine is the group of all products a specific seller offers for sale. A product blend involves various product lines and has a certain width, length, depth, and steadiness. The desk below shows the product-mix width and product-line span for Nestlé products in Singapore.

Product-Mix Width


Baby Foods



Chilled Dairy

Ice Cream

Confec-tionery & Choco-lates


Culinary/ Foods

Healthcare Nutrition

Perfor-mance Nutrition

Pet Care

Product Series Length

Junior Foods

Growing Up Milk

Breakfast Cereals

Yogurt Drink


Kit Kat


Maggi Noodles



ALPO Dog Food

Infant Cereals

Full Cream Milk






Maggi Porridges



Pro Plan Dry Food


Adult Milk



Take Home Tubs



Maggi Stock








Nestle Glaciers Cream



Sauces & Seasonings











Yang Sheng Le









Nestle Gold


Recipe Collections









Uncle Tobys






The width of something mix refers to just how many different product lines the company carries. Nestlé's range of products includes baby foods, milk, cereals, milk products, confectionery, ice cream and chocolates, culinary foods and pet care products. Nestlé also provides a broad range of nutritional and flavored beverages and offers products with specific healthy functions. The space of something mix refers to the total number of items in the combine. Nestlé had the average product amount of 2. 8. Within the range of Nestlé's dairy food include growing up dairy, full cream, filled milk and adult milk. The depth of a product mix refers to how many variations are offered of every product in the collection. For example, Nestlé adult milk will come in two functional varieties (bone and heart health). The persistence of the product mix refers to how tightly related the various products are in end use, creation requirements, distribution channels, or various other way. Nestlé's product lines are regular insofar as they are consumer goods that feel the same distribution channels.

Company can expand its business in four ways: it can truly add new product lines, thus widening its product mixture; it can extend each products; it can truly add more product variants to each product and deepen its product combination; or it can go after more product-line persistence. To attain our targeted market, Nestlé can truly add new product line in the region of seniors health food, thus widening its product mix.

In Singapore, the Country wide Mental Health Review (NMHS) conducted in 2003 reported a prevalence of dementia among older people as 5. 2% for > 60 years, 6. 0% for > 65 years, and 13. 9% for > 75 years. Health Minister Khaw Boon Wan expects the volumes to increase by time 2020. According to research, nutritional zero older 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 columnist distributed a recent survey results indicating that elderly Singaporeans aren't getting enough diet, with only 1 1 per cent of 421 respondents aged 50 years old and above have a balanced diet that fulfills the suggestions of the Health Promotion Panel (HPB).

Contrary to common perception, dementia is no inevitable part of the ageing process and preventive and protecting factors can help reduce the risk or delay the onset of dementia (Health Advertising Board). The best way to fight dementia is to keep a good cognitive function and having a wholesome and well balanced diet is vital. There's a growing need and market for Nestlé to produce brain-healthy functional foods targeted at the section of the magic market who desire to retain memory space, brain health and have balanced diet. In Singapore, although there are already a number of brain health supplements targeted at older people, fortified food products targeted at this group are lacking.

The first reason why Nestlé's product may be revised to attain the targeted section is basically because Nestlé Research Centre (NRC) is internationally renowned for its work in the meals and dietary sciences. For instance, as milk is particularly sensitive to heating, Nestlé developed a tender sterilization of dairy that shields the fragile amino acid, lysine and etc in their dairy products. In this article "Brain food" (The Business Times, Dec 02, 2009), Fernando Gomez-Pinilla, a teacher of neurosurgery and physiological knowledge at UCLA Medical School shared his findings on how dietary factors influence brain function. And he emphasized that Omega-3 fatty acids, with DHA are crucial for normal brain function, and has been proven to enhance synaptic plasticity. Through Prof Gomez's exploration, he has proven that folates and antioxidants also helped reduce age-related decline in cognitive function. Currently, Nestlé offers different dairy food fortified with flat iron, zinc, supplement A and other micronutrients targeted at dealing with specific health deficiencies plus they have existing product such as NESTLÉ NAN toddler milk formula that contains DHA and ARA, two important things that support brain development of young children. Nestlé Research groups can work on improving the ingredients used in their existing products and offer milk products fortified with Omega-3 fatty acids, folates and antioxidants targeted at retaining the cognitive function of the aging population. What's needed is a marketing effort, advertising the new selection of products as brain-boosting useful food to the elderly.

Next, Nestlé experienced distinctive products wedding caterers to the needs of child, young children; men and women who are worried with their health; and athletics who would like a performance raise. Nestlé R&D Singapore is definitely concentrating on creating products with micronutrient fortification to handle deficiencies, therefore, with Nestlé's knowledge in the field and food and dietary sciences, they can aim to develop an additional products with a range of milk products cater for the management of elderly health, besides, the development of brain healthy fortified food is ideal for the benefit of the aging society in Singapore. Within the longer run, Nestlé can also expose a variety of new food products such as seniors snacks, healthy food choices and refreshments and much healthier culinary products with an alternative positioning and focus on the different sections of the metallic market.

Question 2 (18 grades)

In this section, I'll move to discuss how Nestlé presently employs the marketing blend concepts of costing, promotion and distribution channels to reach its key target market for Nestlé adult dairy food in specific. Their adult milk products are directed at health-conscious adult consumers who desire to retain center and bone health.

Price is the main one aspect of the marketing mixture that produces revenue and communicates to the market the company's planned value setting of its product or brand. Nestlé's consumers add the poorest to the wealthiest, and the ones searching for convenience food or specific alternatives with identified consumer benefits. These offer opportunities to allow them to provide high quality wholesome products. (Nestle Management Statement, 2007). Nestlé has implemented value costs through winning faithful customers by charging a fairly low price for a high-quality offering. For instance, Nestlé targets the low income group through their Popularly Positioned Products (PPP) strategy, which focuses on creating items which are both highly nourishing and affordable on a daily basis for low-income consumers. Value pricing involves re-engineering their company's functions to become a low-cost manufacturer.

Nestlé set proper price points because of their products, since those with lower earnings have a much greater need for highly healthy foods. (Nestle Management Survey, 2007). Nestlé had developed product lines rather than sole products and add price steps, known as their multi-price point strategy, targeted at acquiring all market opportunities. In this manner, their targeted consumers are able to trade up and down without trading out of Nestlé's products. An illustration of the multi-price point technique for a packet of 900g of adult dairy within the merchandise line is estimated as follow:

Nestlé also stimulate purchase of their milk products through various promotional rates. For instance, the Nestlé milk powder advertising at FairPrice offers a redemption of $10 NTUC FairPrice surprise vouchers when customer accumulate $100 value of Nestlé dairy powders purchase. The advertising motivates purchase of Nestlé milk products within a given time. Nestlé also build special prices using events to bring more customers.

Nestlé acquired an unequaled geographic presence in many markets, including emerging markets. Nestlé has created very close relationships between their brands and their consumers as well as an in-depth knowledge of their consumers and an know-how in related movements. It has also empowered Nestlé to build up local management groups, build local processing and R&D and set up local supply-chain initiatives including long-term connections with suppliers. Internationally, Nestlé's dairy product is available in more than 100 countries throughout the World. (Nestle Management Article, 2007)

Nestlé used intensive distribution strategy by placing their dairy food in as many outlets as is feasible, knowing that their targeted consumer takes a great deal of location convenience. Intense distribution raises product availability. In Singapore, we can find Nestlé's milk product in popular stores like convenience stores, pharmacies, and everything leading supermarkets. These places are situated within 10 minutes' walking distance from consumers' homes.

Marketing marketing communications is the means by which firms attempt to notify, persuade, and remind consumers about the merchandise and brands that they sell and Nestlé enhance consumer communication with dietary messaging. The marketing and sales communications mix consists of six major 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 something or trigger quick sales. Nestlé utilized the used of various media and methods to promote their milk products. Just just lately, they started a print/radio advertisement for Nestlé Nesvita Omega plus Acticol milk, advertising it as Singapore's 1st in support of milk with flower sterols which are shown to lower bloodstream cholesterol. Consumers have been experiencing on the radios and experiencing in the documents about the good thing about having a lesser cholesterol levels associated with consuming Nesvita Omega plus Acticol dairy daily.

Nestlé also drew focus on their products by organizing special happenings. Nestlé held a health exhibition "Nestlé Presents Health and You 2010" which attracts the young and old. They had activities which appealed to all in the family at the event, including free cholesterol and bone density investigations by Nestlé Nesvita Omega plus Acticol for medical mindful and health training seminars and talks by medical researchers, nutritionists and doctors. In addition, Nestlé acquired a strategic relationship with Singapore Heart and soul Foundation (SHF) known as "Love Your Heart". The partnership allows Nestlé to carry the SHF logo design on the Nestlé Omega Plus range, endorsing it as the preferred adult dairy choice as it has the added benefit of heart health as well as calcium mineral for bone health. Nestlé also encourages heart and soul health through the marketing, including the "Cholesterol Task" in which the public are asked to lessen their bad cholesterol. By becoming part of a particular and more in person relevant point in time in consumers' lives, Nestlé's participation with occurrences broadened and deepened the partnership with their target market.

Question 3 (28 markings)

The brand name for our new product is "Nestlé MindFit Silver", a fortified milk natural powder offering benefits as follow: maintain the cognitive function of older by slowing and stabilizing age-related brain decline and provide specific dietary food value for a well-balanced diet. Our focus on section of the metallic market for the Nestlé MindFit Silver is elderly who want to retain memory, brain health and have balanced diet. This portion can be defined demographically by years (50-55 and old). Nestlé strategy is dependant on a placement of product differentiation.

Product is the first & most important factor of the marketing combination. Packaging is a significant styling weapon that provides the buyer's first encounter with the merchandise and is capable of either turning the customer on or off (Kotler et al, 2009). Packaging is thought as all the activities of planning and producing the box for something. We will introduce elegant platinum and silver-trim presentation container as we needed a sophisticated-looking bundle that reflects the quality of Nestlé MindFit Silver precious metal. A good product packaging really helps to identify our brand and convey descriptive and persuasive information to your focus on consumers. Functionally, structural design is crucial. We find out that resealability, freshness and easy-to-open and close packaging are of huge importance to the elderly consumers, and has incorporated these packaging inventions inside our new product. The label on our offer will take our brand, custom logo and the Nestlé healthy compass that provides our consumers with tips and dietary facts that guide them towards educated choices about their diet. We will also have a picture of your sharp-looking mature ambassador in his 50s on the product label; this helps it be easier for the elderly to distinguish our product from other brands on the racks.

Pricing decisions must be regular with the firm's online marketing strategy, target market segments, and brand setting. The Nestlé MindFit Gold will be released at $18 believed retail price per 400g tin and we'll use several rates techniques to stimulate purchases. In the first six months of product unveiling, we will offer a cash rebates of $4 to bring more first-time customers. We be prepared to come up with more variants of the Nestlé MindFit Magic, such as cereals, infusion of more flavorings and priced them in different ways to meet up with the needs of more consumers. We will also set up special prices in conjunction with HPB's dementia plan to draw more customers.

Marketing channels are collections of interdependent organizations involved in the process of making a product available for use or use. Our route strategy is to use selective circulation, marketing Nestlé MindFit Metallic through Medical center pharmacies, decided on Unity Pharmacies, Guardian and Watsons stores, determined NTUC Fairprice, and chosen Cold Storage stores. By doing so, we can gain satisfactory market coverage with an increase of control and less cost than extensive distribution. Even as are targeting older people consumers, we implemented home delivery as an additional point of access. This is because we recognize that some elderly has difficulty venturing out to buy groceries due to health problems. Since the awareness of diet service for cognitive health is our aim, other channels of distribution could include local broadcast multimedia or public forums at community centre. Place should look at the convenience of the product to the consumer and where in fact the consumer can buy it most readily. To get channel associates, we will provide full-color posters exhibiting the picture and key benefits of Nestlé MindFit Sterling silver. Our training staff will work with retail sales workers to explain the benefit for the merchandise. Finally, we intend to arrange special repayment terms for stores that place quantity orders around.

Marketers need to artistically employ multiple kinds of communications to effectively reach and impact target market segments. The marketing communications mix involves six major methods of communication: advertising; sales campaign; events and experience; public relations and publicity; direct marketing; and personal selling. We will utilize advertising; sales promotion; events and encounters; public relations and publicity to market Nestlé MindFit Sterling silver to the targeted section of the metallic market.

We will start an integrated tv set, printing and radio advertising targeting older people. TV advertising is an efficient means of vividly demonstrating our product qualities and persuasively describing their corresponding advantages to the elderly. Our TV ad will show a smart looking older man sharing along with his friends about the benefits associated with Nestlé MindFit Metallic, and the way the dairy product help him to remain distinct and alert. That is a creative way to reinforce the meaning that Nestlé MindFit Silver help maintain the cognitive functions in elderly. Out print advertisings on papers and magazines provides much more product details and can also effectively speak user and use imagery. Our radio advertising will add a tag lines promoting the Nestlé MindFit Silver precious metal as a brain healthy food for the older parents.

As the multimedia system advertising efforts remains, we will also disperse new point-of-purchase exhibits to aid our merchants and improve the amount of spontaneous buying decision. We will add consumer sales campaigns such as distributing samples to elderly at the store and we'll organize competition offering awards such as cash and trip trips therefore of purchasing our products within the given time period.

We will also take part in the 50plus Expo, a consumer good for older people prepared by the Council for Third Get older. The expo is targeted for those aged 50 and above and it is devoted to shopping, performances, talks, demonstrations and more. We will educate consumers on the great things about drinking Nestlé MindFit Gold as an everyday healthy drink and at exactly the same time, generate channel support for our product unveiling.

Nestlé has been actively involved in sponsorships of a number of triggers. A sponsored event must meet up with the marketing objectives and communication strategy, and the audience sent by the event must match the mark market of the product. Nestlé will sponsor the Health Promotion Board (HPB)'s Dementia Recognition Campaign. To improve awareness of dementia, HPB has air on Channel 8 and Suria a brief film on dementia that has been directed by local director, Royston Tan. Alternative activities with the campaign include interesting talks organised at Tan Tock Seng Clinic, shopping centre, hotels, and open public catalogue. Nestlé can strategically identify itself at the events using banners and signs advertising Nestlé MindFit Gold as the top brain food choice for active elderly people. Nestlé will also provide free product examples at the events to generate buying crowds.

Social network such as Facebook is becoming an important force in marketing. An integral aspect of social networks is word of mouth. Consumers speak about dozens of brands each day and Facebook offer subjection and the targeted market will distributed the brand note. IT classes have opened up a whole new world for older people who learn how to browse internet and use Facebook and these elderly have become more internet savvy and Facebook is a popular social network included in this. To reach our targeted market, we will set up a Facebook web page for Nestlé MindFit Sterling silver, and can post changes on our latest campaigns, contests, incidents and generate thread debate. Our aim is that more elderly can be linked to our Facebook site, to learn more about our products, and share their feedback on our product.

We believed an integrated marketing communications (IMC) can produce better message steadiness and greater sales effects as it pushes management to take into account every way the clients comes in contact with our product. IMC should improve our company's potential to reach the right customers with the right text messages at the right time and in the right place. (Kotler et al, 2009).

More than 7 000 students trust us to do their work
90% of customers place more than 5 orders with us
Special price $5 /page
Check the price
for your assignment