nestle lc1 presentation
DESCRIPTION
nesle lc1 yogurtTRANSCRIPT
![Page 1: Nestle lc1 presentation](https://reader036.vdocuments.us/reader036/viewer/2022081413/548c6d3cb4795957438b4582/html5/thumbnails/1.jpg)
Managing Internal Growth and Nestle:The Story of LC1
Presented by:Diana Lim
![Page 2: Nestle lc1 presentation](https://reader036.vdocuments.us/reader036/viewer/2022081413/548c6d3cb4795957438b4582/html5/thumbnails/2.jpg)
The Company
Founded 1866 in Switzerland as an infant nutrition company
480 factories 276,050 employees
worldwide business volume in 2006
over $ 100 billion
![Page 3: Nestle lc1 presentation](https://reader036.vdocuments.us/reader036/viewer/2022081413/548c6d3cb4795957438b4582/html5/thumbnails/3.jpg)
Business Strategy
Encourage product growth through innovation and renovation
Internal growth strategy• Develop new products
• Renovate existing ones
Develop innovative ideas transform ideas into successful products
![Page 4: Nestle lc1 presentation](https://reader036.vdocuments.us/reader036/viewer/2022081413/548c6d3cb4795957438b4582/html5/thumbnails/4.jpg)
Internal Growth Drivers
4 pillars for would drive Nestle’s internal growth worldwide as identified by Peter Brabeck (CEO)
Operating Excellence
Innovation and Renovation
Product Availability
Communication
![Page 5: Nestle lc1 presentation](https://reader036.vdocuments.us/reader036/viewer/2022081413/548c6d3cb4795957438b4582/html5/thumbnails/5.jpg)
The Story of LC1
research team in Switzerland discovered a culture called Lactobacillus acidophilus, or La-1
contains a probiotic agent, which is living microbial feeding supplements that allow the lower intestine to function better
No immediate plan to introduce in into yogurt
![Page 6: Nestle lc1 presentation](https://reader036.vdocuments.us/reader036/viewer/2022081413/548c6d3cb4795957438b4582/html5/thumbnails/6.jpg)
The Story of LC1
James Gallagher – European coordinator for chilled products
Andrea Pfeifer – leading scientist at the Research Centre
Create a new segment on the yogurt market
Position itself as a functional food
![Page 7: Nestle lc1 presentation](https://reader036.vdocuments.us/reader036/viewer/2022081413/548c6d3cb4795957438b4582/html5/thumbnails/7.jpg)
Launch of LC1 in France
Launched 1994 Not the success that Nestle had hoped Reasons:
• LC1 arrived late; Danone already in the market
• Consumers didn’t believe it tasted better than other yogurts
• Purchased based on claims; decision not to repurchase was based on taste
• Too scientific to understand benefits
![Page 8: Nestle lc1 presentation](https://reader036.vdocuments.us/reader036/viewer/2022081413/548c6d3cb4795957438b4582/html5/thumbnails/8.jpg)
Failure
Danone’s Actimel Japan’s Yakult Both have outsold LC1
LC1 failed in France and UK – delisted LC1 Go!: introduced 1998 pulled out 2000 Nestle Brand – associated with Ice cream and
indulgent desserts Marketing Strategy
![Page 9: Nestle lc1 presentation](https://reader036.vdocuments.us/reader036/viewer/2022081413/548c6d3cb4795957438b4582/html5/thumbnails/9.jpg)
Launch of LC1 in Germany
Launched in 1995 Highly successful in Germany
• No clear market leader in Germany
• Yogurts that made health-based claims were new to the market (differentiation)
• German consumers preferred the taste of LC1
![Page 10: Nestle lc1 presentation](https://reader036.vdocuments.us/reader036/viewer/2022081413/548c6d3cb4795957438b4582/html5/thumbnails/10.jpg)
SWOT Analysis
Strengths Weakness
Strong R&D Team/ food science Late entry into market
Low cost operator Positioned as too scientific
Opportunities Threats
Health consciousness Mature markets
Introduce more health-based products in Germany
Intense competition
![Page 11: Nestle lc1 presentation](https://reader036.vdocuments.us/reader036/viewer/2022081413/548c6d3cb4795957438b4582/html5/thumbnails/11.jpg)
Reflecting on the Success of LC1
Understand technical ideas transform into marketing ideas
R&D process people must talk to business people early on in the process
Think of product concepts: “where could this scientific finding be possibly used?”
Led to the creation of Nutrition division in 1997
Restructured compensation package
![Page 12: Nestle lc1 presentation](https://reader036.vdocuments.us/reader036/viewer/2022081413/548c6d3cb4795957438b4582/html5/thumbnails/12.jpg)
Nestle’s campaign for LC1
First probiotic yogurt
Supports the body’s defenses
Special name
Special design
![Page 13: Nestle lc1 presentation](https://reader036.vdocuments.us/reader036/viewer/2022081413/548c6d3cb4795957438b4582/html5/thumbnails/13.jpg)
TV Spot
A hedgehog was introduced as a key visual
He has his spikes
![Page 14: Nestle lc1 presentation](https://reader036.vdocuments.us/reader036/viewer/2022081413/548c6d3cb4795957438b4582/html5/thumbnails/14.jpg)
TV Spot
We haven’t
![Page 15: Nestle lc1 presentation](https://reader036.vdocuments.us/reader036/viewer/2022081413/548c6d3cb4795957438b4582/html5/thumbnails/15.jpg)
TV Spot
That’s the reason why I help my body with health
food
![Page 16: Nestle lc1 presentation](https://reader036.vdocuments.us/reader036/viewer/2022081413/548c6d3cb4795957438b4582/html5/thumbnails/16.jpg)
TV Spot
Everyday
![Page 17: Nestle lc1 presentation](https://reader036.vdocuments.us/reader036/viewer/2022081413/548c6d3cb4795957438b4582/html5/thumbnails/17.jpg)
TV Spot
With this special milk
ferment
![Page 18: Nestle lc1 presentation](https://reader036.vdocuments.us/reader036/viewer/2022081413/548c6d3cb4795957438b4582/html5/thumbnails/18.jpg)
TV Spot
It’s good for my body’s
defenses
![Page 19: Nestle lc1 presentation](https://reader036.vdocuments.us/reader036/viewer/2022081413/548c6d3cb4795957438b4582/html5/thumbnails/19.jpg)
TV Spot
This is quite to my
taste
![Page 20: Nestle lc1 presentation](https://reader036.vdocuments.us/reader036/viewer/2022081413/548c6d3cb4795957438b4582/html5/thumbnails/20.jpg)
TV Spot
Nestle LC1 for daily
consumption with health
plus
![Page 21: Nestle lc1 presentation](https://reader036.vdocuments.us/reader036/viewer/2022081413/548c6d3cb4795957438b4582/html5/thumbnails/21.jpg)
Print Media
Give a scientific appearance Explain the concept of probiotic Hedgehog was part of the ad