MARKETING 100 SEMESTER PROJECT - NESTLE - WILDER

Nestle collaboration to target genes and taste perception

2008-05-09T13:17:00.005-04:00

http://www.foodnavigator.com/news/ng.asp?n=85172-nestle-taste-genetics

The collaboration between Nestlé Research and leading worldwide brain institutes will open a new dimension in sensory research, allowing Nestlé to provide a broad range of choices to meet personal taste and nutrition preferences," said Peter van Bladeren, Head of Nestlé Science and Research.

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Brilliant idea to research the human brain to detect what flavors stimulate the sensory and taste nerves. If Nestle comes across the right formulation for a new type/flavor of Chocolate, Nestle will beat its competitors hands down. Look out Hershey.

1968 Nestl'e Quick Ad

2008-05-08T10:22:00.005-04:00

1968 Nestlé Quik Chocolate Drink Mix original vintage advertisement. "Nestlé's makes the very best chocolate."

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I much prefer this ad to the now familiar ads that we see today in Nestle's Nesquik advertising showing "Quicky" the Nesquik bunny. Quicky was introduced in 1973 in order to entice kids. To me the above ad is more appetising. Everything in this ad is a rich chocolate color, from the background, drink and chocolate chips. Makes me want to go out and purchase Nesquik.

Nestle - Trade Dress - Stouffers

2008-05-07T13:00:00.004-04:00

Trade Dress: Visual cues used in branding create an overall look sometimes referred to a trade dress.

Stouffer's food products are always packaged whether individual or family size in square box containers. Stouffer's can always be picked out from amongst its competitors by the use of visual cues. On all of Stouffer's packaging there is a red background highlighted with yellow lines and a black rimmed with gold oval label shape with Stouffer's in the middle.

Nestle - Individual Brand - Poland Spring

2008-05-06T14:40:00.003-04:00

Nestle Market's Poland Spring Water under an individual brand.

Nestle - Brand Equity

2008-05-06T09:19:00.004-04:00

Brand Equity - Added value that a respected, well-known brand name gives to a product in the marketplace.

This definition describes Nestle to a T. Nestle has a reputation for producing much needed, good quality products. In addition, the company has been around for years. Many Nestle products have been used in families for generations.

The Sweet Taste of Nestle's - Barron's

2008-05-05T14:22:00.004-04:00

http://seekingalpha.com/article/75572-the-sweet-taste-of-nestle-s-barron-s

“People have to eat, regardless of what’s happening on Main Street or Wall Street.” - Barron’s says people are likely to keep on eating global food conglomerate Nestle’s (NSRGY.PK) top brand-name foods despite a softening economy. Nestle might face expensive commodities, global competition, and consolidation (Mars purchased Wrigley’s gum last week). But its consistent top-line growth, bottom-line margins and efficient use of capital have made and kept Nestle number-one. All of Nestle’s product lines are growing, as is its income. And CEO Paul Bulcke continues to improve products by making them more nutritional, a boon for an increasingly health-conscious population.

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As you can see in the above Stock Chart, even with the rise in commodities worldwide, Nestle's stock consistently continues to rise. This is due to the fact that much of Nestle's business is overseas.

Nestle - Poland Spring - Brand Insistence

2008-05-02T12:07:00.005-04:00

Poland Spring is ranked the top selling bottled water in the country. Loyal customers of Poland Spring will buy no other. Loyal customers insist that markets stock their shelves with Poland Spring water. This is seen by the many varieties in packaging that Poland Springs offers. (sizes, stackable, environmental). Stores know that not carrying Poland Spring will lead their customers to their competitors that do.

Nestle - Brand Recognition - Nestle Nesquick

2008-05-02T11:47:00.006-04:00

Nestle uses the Nesquick mascot "Bunny" on the packaging of all its Nesquick products. With so many similar products on the market shelves, consumers sometimes get confused. Many consumers may forget who manufactures Nesquick but will remember to ask a sales person "Do you have that chocolate drink with the bunny on it?" "Oh says the store clerk, do you mean Nestle Nesquick? That would be Aisle 3".

Nestle - Brand - Kit Kat Bar

2008-05-02T11:36:00.003-04:00

Brand - Name, term, sign, symbol, design or some combination that identifies the products of one firm while differentiating them from the competition.

The Kit Kat candy bar is a brand manufactured by Nestle that differentiates itself from other competitors.

Nestle - Family Brand - Stouffers Products

2008-05-01T13:19:00.002-04:00

Nestle's Stouffer Products is a family brand that offers a line of individual and family dinner entrees, sandwiches, pizza and side dishes.

Nestle - Brand Recognition

2008-04-30T14:51:00.007-04:00

Whether it's the old standby or the introduction of new products in the Nestle candy or ice cream lines, consumers know Nestle's name is synonomous with good, delicious, quality products and look for Nestle's name recognition when purchasing products.

When introducing new products Nestle will use coupons or print/media advertising to promote.

Wrigley will give Mars something to chew on

2008-04-29T14:12:00.007-04:00

http://business.theage.com.au/wrigley-will-give-mars-something-to-chew-on/20080429-29db.html#

CHOCOLATE colossus Mars is buying gum goliath Wrigley in a $US23 billion ($A24.5 billion), sugar-fuelled deal that will create the world's largest confectioner and may reshape the landscape of the global confection industry.

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Even though Mars and Wrigley are to become one big happy family, thanks to Berkshire Hathaway and Warren Buffett's sweet tooth, which will make the company larger than Hershey, the new company can't compete with Nestle's large product line as the company also has a slice of the world's chocolate/candy market. Who knows maybe Mars and Wrigley (whatever the new company will be called) will look to expand their portfolio by producing other products like (water, baby food, etc.). The only problem is that it won't work as the two companies are known for confectionery. Leave the rest to Nestle.

Ivorian March Cocoa Exports Rise 81% From Year Ago

2008-04-24T13:03:00.000-04:00

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aueGYNjFoNeI

April 21 (Bloomberg) -- Cocoa exports from Ivory Coast, the world's biggest producer of the chocolate ingredient, rose 81 percent in March. Shipments of coffee products, mainly soluble coffee produced by Nestle SA in Abidjan, rose to 1,451 tons, from 774 tons in March 2007.

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I am wondering why there is a rise in Cocoa and Coffee exports, especially since food, gas and other products worldwide are so expensive. Maybe people can see cutting out certain food products like meat, or cut back on entertainment, travel and gas to save money, but will instead purchase little luxuries like chocolate or coffee to compensate.

Nestle - Lean Cuisine - Frozen Food Comparison -Women's Health

2008-04-23T13:24:00.005-04:00

http://www.womenshealthmag.com/nutrition/frozen-food-meals

Frozen Assets
Heat-and-eat meals that benefit your bod and satisfy your stomach
Forget frost-burned Salisbury steaks and cold-in-the-center potpies. Things are heating up in the frozen food aisle. These six brands are heading up a new ice age, providing tasty, healthy meals you can feel good about.

Best Portion Size: Lean Cuisine Dinnertime Selects ($3.50, Lean Cuisine)Itty-bitty portions can leave you feeling ravenous after scraping the last bite from a plastic tray. "Because most frozen meals are around 9 ounces, I would recommend them as a perfect take-to-work lunch," Warshaw says. "But you might want something more substantial for dinner." These 10 hearty 12-ounce meals keep calories under 400 and portion sizes supper-suitable and some even include dessert. WH favorites: Balsamic Glazed Chicken, Roasted Turkey Breast.

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Consumer Magazine Women's Health often does comparisons between different products in their magazine. In this case, WH compared frozen meals from various manufacturers. In WH's opinion, Lean Cuisine faired well in portion size.

Coca Cola Advertising

2008-04-22T14:12:00.003-04:00

Early on Coca Cola knew how to use person marketing by utilizing "Santa" a iconic and beloved figure to children in its advertising campaigns throughout the years. Santa wearing red and white, the same colors as the Coca Cola brand seen drinking or holding a coke sent the sells of coke products through the roof during the holidays.

Nestle retains Mc Cann Ericsson, Ogilvy & Mather and others

2008-04-22T12:32:00.009-04:00

Foote, Cone & Belding Worldwide

http://ismindia.org/faculties/ved/lecture03.html

Advertising

Nestle had been employing over a hundred different agencies. As the company looked for global branding opportunities, coordinating the activities of so many agencies became a major problem. Nestle decided in favour of retaining only a few agencies – Mc Cann Ericsson, Lintas, Ogilvy & Mather, JWT, Publicis / FCB and Dentsu. Peter Letmathe, Nestle CEO explains the role of an advertising agency in the company’s globalization efforts: “ To us, the most important thing is to have dedicated teams. Mc Cann for instance has 10 people working only with Nestle. I see them as an extended arm of my communications team. They visit every six weeks to tell us what they are doing around the world.”

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Down sizing ad agencies now means that Nestle can get a clear picture of what ads were or were not working when it came to advertising their products and what new approaches could be taken to make the marketing of the products more effective.

Nestle - Poland Spring - Pathmark - Cooperative Advertising

2008-04-21T12:53:00.005-04:00

Nestle participates in cooperative advertising by sharing advertising costs with Pathmark. As you can see Nestle has chosen to advertise in Pathmark's weekly sales circular and has strategically placed its Poland Spring Water like other manufacturers have in the earth day section devoted to help protect the environment.

Canada must reconsider how it 'gives away' water to be bottled, sold: activists

2008-04-18T15:48:00.004-04:00

http://canadianpress.google.com/article/ALeqM5iXNtVIi0rx6cShlo4iQ6KKF0rDcg

Canada should not be "giving away" its water to be bottled and sold outside the country, activists said Thursday as they celebrated a partial victory against Nestle Canada Inc. and its plan to tap a southwestern Ontario community for 3.6 million litres of water every day for five years.
While Ontario's Environment Ministry did renew Nestle's permit to take up to 1.3 billion litres of groundwater a year from an area near Guelph, Ont., it reduced the term of the deal from five years to two. The ministry said it considered 3.6 million litres a "sustainable" amount for Nestle to take daily.

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I spoke to soon. There appears to be an uprising by residents against their cities and towns giving away their water to outside companies, and wisely so. Nestle will have to look to purchasing land or lakes that are privately owned and bottle water that way. It's crazy to think that people are buying water from companies such as Nestle when they are actually paying for water or in some cases for free by simply turning on a tap in their homes.

Town turns down Nestle Waters offer

2008-04-18T15:26:00.003-04:00

http://www.boston.com/news/local/breaking_news/2008/04/town_turns_down.html?p1=Well_MostPop_Emailed7

The town of Clinton has turned down a proposal from Nestle Waters North America Inc. that would have allowed the company to pump 240,000 gallons of water daily out of underground aquifers for bottling.

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The turning down of this proposal by the city council which would have benefited the town of Clinton by $300,000 makes perfectly good sense. For crying out loud, once Nestle purchased the rights to acquire the water from the town and God forbid the town's wells are depleted and there is an emergency, like lets say the 1906 earthquake that started the great San Francisco Fire blew through the town, can the citizens use the water, would they have to get permission from Nestle to do this or have more water shipped in.

Great decision by the town.

Nestle May Say Sales Increased After Boosting Prices (Update2)

2008-04-18T15:10:00.004-04:00

April 18 (Bloomberg) -- Nestle SA, the world's largest food company, will probably report an increase in first-quarter revenue after raising prices by the most in a decade.
Sales rose 4.5 percent to 25.35 billion Swiss francs ($25 billion) from 24.25 billion francs a year earlier, according to the median estimate of seven analysts surveyed by Bloomberg News. The Vevey, Switzerland-based maker of Nescafe and Jenny Craig diet meals reports on April 21.

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Because of increase commodity costs to produce the many diverse products Nestle makes, the company raised prices by 3% on average since 2007. Nestle's competitors were not able to offset the commodity costs and are expecting a drop in 2008 income. Oh well, people are willing to pay for anything Nestle. Name recognition, good products and world wide appeal for now until another corporation comes along makes Nestle always the winner.

PAN AM - Enticing Advertising

2008-04-17T10:20:00.009-04:00

PAN American Airways is no longer in operation. The airline first started out as a mail carrier service later going into domestic travel. In the begining only the very wealthy could afford to fly. PAN AM enticed these travelers with romantic ideas of traveling to far away places that you could not only read about in books but see for yourself first hand.

Nestle Nesquick - Junk food ads find web home

2008-04-16T11:51:00.018-04:00

STOP HATING ON THE NESQUIK BUNNY!!!

http://business.smh.com.au/junk-food-ads-find-web-home/20080416-26lo.html

The analysis by Cancer Council NSW of 315 children's websites found that ads for soft drink, ice-cream, fast food and confectionery outnumbered those for healthy foods by two to one.
JUNK food marketing is "monopolising" the internet as television advertising comes under scrutiny, a study says.
The council said that many of the techniques used on food product websites for companies that included Cadbury, Nestle and Kellogg led it to conclude that "these techniques act to reinforce the food brand and increase children's exposure time to the product. The 'sticky' nature of the internet, in that it captures and maintains children's attention for extended periods, makes it a potent marketing medium."
It also found that 58 per cent of sites targeting younger children featured the brand's mascot - such as the Nesquik Bunny or the Coco Pops Monkey - as the main promotional character.

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Stop hating on the Nesquik Bunny

Nestle like any company is out to make money. Of course they are targeting, especially since they make chocolate and other confectionery products, children. If Nestle leads the pack in reinforcing its brand ID to children then its marketing strategy including using a cartoon bunny (I should find out if the bunny has a name) to entice children to beg their parents to buy the product is working.

Nestle - Media Selection

2008-04-15T13:25:00.003-04:00

Nestle uses television, newspapers and magazines to advertise Poland Spring, Nestle Quick and their other lines of products.

Lindt & Spruengli wants to remain independent - CEO

2008-04-14T12:14:00.009-04:00

http://www.forbes.com/markets/feeds/afx/2008/04/14/afx4884684.html

'We see absolutely no reason to give up our independence,' he said.
Even a theoretical 20 billion Swiss francs offer from Nestle -- valuing the group at three times its price -- would not be attractive to the group, Tenner said.
Lindt would not even consider accepting such an offer, he said.

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Nestle has finally met its match with Lindt. 20 billion Swiss Francs could not even sway them.

Campbell's soup ad - "Serve by Saving Wisely" circa 1918

2008-04-11T13:32:00.004-04:00

Above is one of Campbell's earliest print advertising. Campbell's advertised in magazines including The Saturday evening Post.