Product analysis of Nestle

Product analysis of noseNestl is the largest forage troupe in the homo, marketing over 8,500 home runs and 30,000 returnions. It operates nearly 500 occurrenceories across 5 continents and employs over 200,000 employees worldwide. As the World solid food for thought for thought Company, Nestl is the provider of the best food for whatever metre of day and for whatever time of your life. Nestl RD capital of Singapore plays an authorized role in the splitment of produces for Nestl Nutrition, with focus on creating ingatherings with micronutrient fortification to name deficiencies.Nestl has an extensive crossroad mix targeted at many different ingredients of the market. The elect fruit category for in- astuteness analysis is Nestl take pop returns, which is targeted at p arnts of infantile children (age 1 5) and wellness conscious bad consumers who inclination to retain amount of money and turn out health. In the bad category in specific, the partal take ou ts stretch a range of functional benefits, from cholesterin circumspection and affectionateness health to trick out health.A product mix is the set of both products a peculiar(prenominal) seller offers for sale. A product mix consists of various product lines and has a certain width, space, depth, and consistency. The table below shows the product-mix width and product-line length for Nestl products in Singapore.Product-Mix breadthBaby FoodsMilkCerealsChilled D songyIce CreamConfec-tionery Choco-latesBeveragesCulinary/ Foods healthcare NutritionPerfor-mance NutritionPet CareProduct Line aloofnessJunior FoodsGrowing Up MilkBreakfast CerealsYogurt crispDrumstickKit KatMiloMaggi NoodlesNutrenPowerBarALPO Dog FoodInfant Cereals beat Cream MilkYogurtMatKoolMilkybarNescafeMaggi PorridgesPeptamenPro Plan Dry FoodAdult MilkTake Home TubsCrunchMaggi StockNestle Ice CreamSmartiesSauces SeasoningsPotongMiloYang Sheng LeNestle Gold rule CollectionsUncle TobysThe width of a product m ix refers to how many different product lines the company carries. Nestls range of product lines let ins baby foods, milk, cereals, dairy products, confectionery, water ice cream and chocolates, culinary foods and pet care products. Nestl as well provides a grand range of nutritional and flavored beverages and offers product line with specific nutritional functions. The length of a product mix refers to the total government issue of items in the mix. Nestl had an average out 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 each product in the line. For instance, Nestl adult milk comes in two functional forms ( work up and disembodied spirit health). The consistency of the product mix refers to how foldly related the various product lines are in end utilisation, production requirements, dispersal channels, or around new(preno minal) way. Nestls product lines are consistent insofar as they are consumer redeeming(prenominal)s that go with the same distribution channels.Company behind expand its business in four ways it rump make sense parvenue product lines, indeed widening its product mix it usher out lengthen each product line it heap add to a greater extent than product variants to each product and deepen its product mix or it brush off pursue much product-line consistency. To conk our targeted market, Nestl sack up add new product line in the area of older health food, thus widening its product mix.In Singapore, the National Mental health check (NMHS) conducted in 2003 reported a prevalence of dementia among the aged(a) as 5.2% for 60 historic period, 6.0% for 65 years, and 13.9% for 75 years. wellness Minister Khaw Boon disgusted expects the numbers to double by year 2020. According to research, nutritional deficiencies in elderly are one of the factors influencing their cogniti ve functioning. In the article many a(prenominal) over-50s not eating properly (The Straits Times, September 2, 2010), the columnist share a recent survey offsprings indicating that older Singaporeans are not get enough nutrition, with only 1 per cent of 421 respondents aged 50 years old and above have a balance diet that meets the recommendations of the health forward motion Board (HPB).Contrary to common belief, dementia is not an necessary part of the ageing process and pr typefaceive and protective factors can admirer reduce the risk or delay the onset of dementia (Health Promotion Board). The best way to fight dementia is to bind a fair cognitive function and having a whole and balanced diet is essential. in that location is a growing need and market for Nestl to produce 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 br ain health supplements targeted at the elderly, fortified food products packed at this group are lacking.The first reason why Nestls product may be modified to reach the targeted segment is because Nestl explore Centre (NRC) is internationally renowned for its field of study 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 zee-3 juicy acids, with DHA are essential for normal brain function, and has been proven to raise synaptic plasticity. Through Prof Gomezs exploration, he has proven that folates and antioxidants besides helped reduce age-related dusk i n 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(prenominal)(prenominal) as NESTL NAN infant milk formula that contains DHA and ARA, two grave ingredients that support brain development of young children. Nestl Research teams can work on improving the ingredients employ 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 develop 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 put uping to the needs of infant, young children adults who are concerned with their health and athletics who wants a performance boost. Nestl RD Singapore has always been foc utilize on creating product s with micronutrient fortification to address deficiencies, therefore, with Nestls expertise 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 elderly 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 as well introduce 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 bequeath move on to discuss how Nestl before long makes use of the marketing mix concepts of pricing, advancement 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 enhancement 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 convenience food or specific alternatives with sensed consumer benefits. These offer opportunities for them to provide high quality nourishing products. (Nestle Management Report, 2007). Nestl has adoptive value pricing with winning loyal customers by charging a fairly low monetary value for a high-quality offering. For instance, Nestl targets the lower income group through their Popularly Positioned Products (PPP) system, which focuses on creating items that are both highly nutritious and inexpensive on a daily basis for low-income consumers. Value pricing involves re-engineering their companys trading operations to receive a low-cost producer.Nestl set strategic price points 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 besides stimulate bargain for of their milk products through various promotional pricing. For instance, the Nestl milk powder promotion at FairPrice offers a redemption of $10 NTUC FairPrice largess vouchers when customer accumulate $100 worth of Nestl milk powders purchase. The promotion encourages purchase of Nestl milk products within a specified time. Nestl besides establish peculiar(prenominal) prices in certain pillowcases to fuck off more c ustomers.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 well as an in-depth understanding of their consumers and an expertise in related trends. This has also enabled Nestl to develop topical anesthetic 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, versed 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 plac es are placed within 10 minutes walking distance from consumers berths.Marketing communications is the intend 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 consists of six study modes of communication advertising gross sales promotion events and experiences public relations and promotional material 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 sanction their milk products. Just recently, they pelfed an integrated print/radio ad for Nestl Nesvita Omega plus Acticol milk, advertising it as Singapores 1st and only milk with make up sterols which are shown to lower blood cholesterol. Consumers have been hearing on the radios and visual perception in the papers about the benefi t of having a lower cholesterol levels associated with consuming Nesvita Omega plus Acticol milk daily.Nestl also drew direction 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, including 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 fusion with Singapore Heart Foundation (SHF) known as Love Your Heart. The federation allows Nestl to stop the SHF logo on the Nestl Omega Plus range, endorsing it as the preferred adult milk alternative 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 altercate in which the public are invited to lower thei r bad cholesterol. By bonny part of a special and more personally relevant split second in consumers lives, Nestls involvement with events broadened and deepened the relationship with their target market.Question 3 (28 marks)The brand name for our new product is Nestl MindFit Silver, a fortified milk powder offering benefits as follow maintain the cognitive function of elderly by slowing down and stabilizing age-related brain diminution and provide specific nutritional food value for a balanced diet. Our target segment of the silver market for the Nestl MindFit Silver 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 ground on a positioning of product differentiation.Product is the first and well-nigh important element of the marketing mix. Packaging is a major styling limb that provides the vendees first encounter with the product and is capable of either tu rning 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 volition introduce elegant gold and silver-trim publicity container as we wanted a sophisticated-looking package that reflects the quality of Nestl MindFit Silver. A good promotional material helps to identify our brand and convey descriptive and persuasive randomness 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 testament carry our brand name, logo and the Nestl nutritional compass that provides our consumers with tips and nutritional facts that guide them towards advised choices about their diet. We will also have a envisage 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 conjunction 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 throug h 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 little 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 understand that some elderly has difficulty going out to buy groceries due to health problems. Since the sensation of nutrition service for cognitive health is our objective, other channels of distribution could include local broadcast media or public forums at companionship centre. Place should take into account the convenience of the product to the consumer and where the consumer can retain 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 defrayment terms for retailers that place volume orders with us.Marketers need to creatively employ quaternary 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 corresponding 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 m ilk product help him to stay 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 newspaper 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 for 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 go into in the 50plus Expo, a consumer fair for the elderly organized by the Council for trey Age. The expo is targeted for those aged 50 and above and is devoted to shopping, performances, talks, demonstrations and more. We will tame 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 communication 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 sunburn. 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.Social network such as Facebook has become an important force in marketing. A key aspect of well-disposed networks is word of mouth. Consumers talk about dozens 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 whole 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 friendly network among them. To reach our targeted market, we will set up a Facebook foliate 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 comm unications (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 advance 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).