STPD & 4P’s of

Nestle Products

Group MembersS.Hari thirumalSibiPriti ThakurManishAritra Sen

STPD of Nestle Kit-Kat • Segmentation:

Geographic Segmentation Both Urban and Rural Areas

Demographic Segmentation. Segmented for 5 – 40 age groups

Psychographic Segmentation.Consumer’s desire for a good value for Money.

Anyone can afford

Targeting: The young crowd and the ads were in line with the Target Group.

• Positioning: It positioned it self as anytime snack “Have a Break Have a Kitkat”

A good refreshing chocolate snack.

• Differentiation: Kit Kat differentiated itself based on its finger shaped wafer bar

Kit Kat used advertisement to promote a ritual for eating a Kit Kat.

Nestle Kit-katProduct:

• The Kit – kat have a wide range to suit different targeted segments

• Design – Plain bars, filled, chocolate covered wafers,

• Brand name - Kit Kat is the UK's best-selling chocolate bar . Nestlé was prepared to pay a record price to acquire Rowntree in 1988 because of the prestigious brands in Rowntree's product portfolio. Kit Kat was an important part of the portfolio

• Sizes and Packages – wide range to suit key price points and occasions

Place• Level 3 Product with intensive Distribution

• Nestle has developed a distribution channel which ensures availability to buy wherever and whenever the consumer wishes to purchase it .

• Strong coverage in urban areas, developing in rural.

• Stored in cold storage

• New Regional Sales Offices to increase width and penetration and focus in rural areas.

Price• Competitive Pricing – They fix the price in competition with Cadbury

• Quantity Discount

• The key advantage of maintaining a strong brand image in competitive market is the degree of flexibility in pricing strategy

Promotion• Direct Marketing at Malls

• ADVERTISING• Nestle joined hands with Google and co-branding its product. • Decreased dependence on children’s TV channels over recent years• 33% of total industry spend but near equal spend on each brand with rival

offerings from Cadbury.• Women account for two thirds of all confectionery sales, but a large

proportion of these purchases are subsequently consumed by children• Kit-Kat advertisement, A creative technique of promoting product• http://www.youtube.com/watch?v=prFNeCLf_Ok• http://www.youtube.com/watch?v=29GrCUTdu3A

Baby Food Products

SEGMENTATION

• Demographic - Infants to 3 year children

• Geographic - Urban and Semi-urban areas

• Behavioral - Usage rate, high for different stages

TARGETING

• Mothers in Urban and Semi-urban areas

Differentiation

• Its unique stay fresh seal and along lasting shelf life gives the brand a formidable competitive advantage.

Positioning

Has positioned among people as healthy baby product, ‘best start for a healthier future ‘

PRODUCT

• It is available in three sizes ,300g and 200g and also in 25g

• Shape and color are very attractive for the customers

• It is available in different flavors

• Convince goods

• The quality of the product is high compared to competitors

PRICE• Mark up pricing

Cost of production of good plus a profit

• Product quality

Based on value perception of the buyers not including price on all

aspect

• Price of the product is very high due to the good quality of the product

• Quantity discount

PLACE

• Nestle cerelac is available all over the region ,regardless of big and small cities

Transportation –

• It is mainly through road ways

Selective market-

• Available in pharmacies and baby product shops

• It has its own warehouses for storage of products

• Level 3 product

PROMOTION• It has adopted TV ,news papers ,doctors

• Sample distribution through doctor.

• “Helps to strengthen babies natural defenses” Complete food for babies

Ad

• http://www.youtube.com/watch?v=bK-786ah15w

• http://www.youtube.com/watch?v=zgrRONRBJDE

MAGGIE KETCHUP

STDP For Maggie Ketchup• Segmentation-

Urban(Geographic)

Income(Demographic)

Benefits(Behavioral)

• Targeting

Urban-Fast food and restaurants

Income-Middle and upper income household

Benefits-Health consciousness

•PositioningTastier , spicy ketchup from the pure ingredients at a moderate price.

•DifferentiationFresh tomatoes content is more than others.

International standard production .

Packaging is different .

PRODUCT

• QUALITY-

Offers a wide selection of health conscious choices and utilizes high quality ingredients .

• FEATURES-

Tomatoes are more and spicier.

Thick in consistency

Possess no harmful chemical ingredients.

• VARIETY - Maggi tomato ketchup, Rich tomato ketchup(with onion and garlic), tomato pudina, hot and sweet tomato chilli sauce, tomato sauce

• SIZES- 1 kg-126, 500 gm-80, 200 gm-40, 90 gm-15

• PACKEGING-Pichkoo-Tetra pack with a cap seal.Thick bottle

• CHARACTERISTICS-Consumer good( Convenience good)Non durable

PLACE• CHANNELS-The distribution network is well spread as

it is easily available in all retail stores.

• COVERAGE-Available in urban areas.

• PLACE-Small retail shops ,malls ,departmental stores and online website.

• DISTRIBUTION-It follows a intensive distribution

MANUFACTURER DISTRIBUTOR WHOLE SELLER RETAILERFINAL

CONSUMER

PRICE• Pricing policy-

Quality oriented

Mark up pricing

Quantity discount

High priced

PROMOTION

• They promote their product very effectively through television.• They have applied the strategy of brand extension.• They also sponsor various cookery shows to promote alternate usage of products.• They also use strategy of free product samples to promote it.• Celebrity endorsements. Eg. Javed Jafferi

• Online/Website

• Retail Shelves

• KFC & McD free samples

Segmentation

Demographic : Age (5-60 yrs), all genders

Geographic : Pan India.

Psychographic : Middle class, upper middle class.

Targeting

Adult (18-40yrs) Urban area

Differentiation

It is popular in the market for its unique taste,freshness, and dryness for longer period.

Positioning

Every Day Dairy Whitener is a milk powderwith high nutritional value made to add a richand smooth taste to the consumers’ tea

PRODUCT Nestle Everyday Dairy Whitener (1986)

Perfectly consistent homogeneous milk solution (without clotsand granules every time)

140 years of expertise; A survey across 4 cities of India showedthat nearly 8 out of 10 people prefer tea made with NestleEveryDay

Nestle is adapting the packaging of some of its products to ensureconsumers of all ages can use them without difficulty , Its called “Inclusive Design ”

In the market, Nestle EveryDay is available in five different sizes(10gm,200gm, 400gm,750gm and 1kg).

PLACE

Nestle EveryDay is level three product. (Manufacturer – Distributor –Wholesaler –Retailer - Consumer)

Pan India (Through various retail shop)

They transport their products at major regional sales office which are situated at different cites of India

Production : Moga (Punjab), Choladi (Tamil Nadu), Nanjangud (Karnataka), Samalkha (Haryana), Pantnagar (Uttarakhand), Tahliwal (Himachal Pradesh)

Point of sales display.

PRICE In the market, Nestle EveryDay is available in five different sizes

It has a price ranging from

10gm - Rs:10

200gm - Rs : 82

400gm - Rs : 155

750gm - Rs : 260

1kg - Rs : 391

So people have different choices to buy.

EveryDay discount pack 5 %,10%

This shows how they want to capture the market.

PROMOTION

The same theme is propagated in its ads – which say ‘Chai Mazedaar HarBaar’. So, the focus is on functional benefit of consistently great taste

In Corporate Nestle website visitors can view TV ads for the Everydaycampaign.

Free samples to hotels (sachet packet)

Milk Powder Packing Can (Tinned) be offered to enhance the product .

Nescafe Classic

Segmentation • Geographical : Urban Areas

• Demographic : Males and females of age 16yrs – 30yrs (Primary), 30+ (Secondary)

• Psychographic : People of middle class families and upper middle class families who believe that consumption of coffee indicates high standard of living

Target• Main target groups are people ageing between 16yrs – 30yrs who

look for instant quality coffee for their refreshments.

• Differentiation : The only brand having highest level of caffeine

• Positioning : 100% pure instant coffee

Differentiation and Positioning

• “Nes” means miracle and “café” means coffee

• Available in ten product varieties with different tastes

• Made from 100% high quality pure coffee beans of Arabica and Robusta with rich flavour and aroma

• Pack sizes available are : 50g (Jar and refill packs), 100g (Jar and refill packs), 200g (Jar and pouches), 500g (pouches)

• Product Characteristics

• Convenience Goods

• Non- Durable

Product

Price

• Skimming strategy

• Product Mix Pricing Strategy

• Price adjustment strategy

• Price leadership strategy

• Price flexibility strategy

Place

Availability

• Retail Shops

• Malls

• Departmental Stores

• Level 3 goods

• Coverage : Covers mostly the urban areas

Promotion• TV Ads

• Newspapers

• Magazines

• Offers

• Quantity Discounts

• Retail Shelves

• Uses “Pull” strategy

Intro to Maggi Noodles

Nestlé India Ltd. (NIL), the Indian subsidiary of the

global FMCG major, Nestlé SA.

Introduced Maggi in India in 1982.

It launched Maggi 2 Minute Noodles, an instant

noodles product

With the launch of Maggi noodles, NUL created a new

food category in Indian packaged food market.

STDP• 5-40 age

• Eating habits

• Usage rate- Medium

• Loyalty- split loyal

Segmentation

• Mothers

• People on the moveTargetting

• Food that is easy to cook and healthy to eat

Positioning

Differentiation • A complete different product, Taste maker

Product

• MAGGI 2-MINUTE Noodles is one of the largest & most loved snack

food brands that defines the Instant Noodles category in India.

• The quality of the product is high in its segment

• Its available in variable size

• Maggi is a convenience goods- Staples

• One of the most trusted brand

Place• Maggi noodles is available in urban areas and covering rural area to

certain extend

• Intensive sales-Available at number of small retail shops and

supermarkets

• It is a Level 3 type product

• It is placed in Snacks category

Price• Value pricing- Low price for high quality offering

• Maggi has a Quantity discount

• Survival objective – Price is kept constant so it is affordable by all

• It is priced as a snack not as meal

• It follows a pull strategy

Promotion

• TV commercials play an important part

• The ‘two minutes’ promise, which started off as an USP.

• All ads for the brand usually focus on the mother-child relationship.

“The mother and child are the celebrities for Maggi,”

• Distributing free samples.

• Direct marketing in Schools and malls

Thank You