YeLLY

Marketing Project byArifa Fatima

Aakash KumarBasla SultanSalman AnisVeer Kumar

NESTLÉ’S MISSION

“At Nestlé, our research makes it possible for everyone to enjoy better food for a better life.”

- Nestlé is a global leader in health, nutrition and wellness

-Launch in April

-Imtiaz, Naheed, Hypserstar, Time Medico

-Product Development

SEGMENTATION STRATEGY

CURRENT MARKET SITUATION

•NESTLE Plain Yogurt was launched on November 1, 2000 in the biggest branded yogurt market – Lahore.•Following this success, In 2011, it went into product development and offered a new product which they called, YELLY.•Yelly is a combination of nestle yogurt with a layer of jelly. However, it failed.

•Since the idea is appealing and it did generate people’s interest, we are re launching yelly with modifications.

•With an increasing awareness on sensible eating and the spread of the notion of ‘healthy eating’, yelly is an attempt towards a product providing health with taste

MARKET DESCRIPTION

•Nestlé’s market consists of kids at the mainstream and people who are health conscious, at the same time also are keen to satisfy their taste buds. •Specific segments being targeted are kids, teenagers, and adult complying the health factor trend, middle and upper middle classes.

PRODUCT REVIEW

Strawberry yogurt with chunks of strawberry and layer of jelly.

Pineapple yogurt with chunks of pineapple and a layers of jelly.

Frozen yogurt with layer of crystallized jelly

COMPETITIVE REVIEWYelly having unique features, do not face fierce competition. The only competitors that come close are local frozen yogurt shops such as Tutti Fruiti.The challenge that Yelly faces is creating its demand in the market.

CHANNELS AND LOGISTICS REVIEW

•Agha’s super market.•EBCO, the forum•HYPERSTAR •MY SUPER STORE, park towers•Naheed super market•Imtiaz super store•Metro •Makro

Marketing Mix

Product

Classification of Product: Yelly’s is a convenience product. This requires minimum or no planning before the purchase. Convenience products are usually low priced.

Levels of Product: There are three types of level which are Core customer value, actual product and augmented product.

1. Core Customer Value: the intangible benefit Jelly with nutritional benefits of yogurt.

2. Actual Product: tangible and physical benefit Features: Colours: Red, Green, Yellow.Frozen or Non-Frozen yogurt.Fruit Chunks:1)Mango 2) Pineapple & 3) Strawberry

PackagingInner packing: Plastic Cup 36g/cup Recycling effort. Nestle logo.Quality level: highest quality of fresh fruits chunks.Brand: Good Food, Good Life.

3. Augmented Product: extra add on, value or

service one gets. After-sale service. Interactive Website.

Individual Product DecisionProduct Attributes: Developing a product involves defining the benefits

that it will offer

1.Quality – Quality consistency Training period Quality Control

2.Features – tools that differentiate product from competitors’ the jelly and frozen yogurt with fresh fruit chunks.

3.Style – Pleasing Aesthetics Colorful

4.Design – Aesthetics: contribute to product usefulness & looks

handy and transparent

Branding: nestle is renowned brand.

Packaging: Environmentally friendly . Creates instant consumer recognition.

Labelling: Nestlé’s logo will be embossed on cup of Yelly.

Pricing: Our pricing strategy is market-penetration pricing. Setting a low price for a Yelly’s in order to attract a large number of buyers and a large market share.

Promotion Mix Strategies: Marketers can choose from two basic promotion mix strategies-push promotion or pull promotion. For pull strategy, advertising. For push, personal selling and sales promotion & public relations.

Place: Our channel strategy is to use selective distribution. In first year, we will add channel partners. Also, special payment terms for retailers.

•Swot analysis is conducted to evaluate the overall Strengths, Weaknesses, Opportunities and Threats to the company•Strengths include the internal capabilities and resources combined with positive situational factors that help the company to achieve its objectives•Weaknesses are internal limitation and negative situational factors that hinder the company’s performance. •Opportunities are the advantages that the company can have due to positive factors or trends in the external environment•Threats are the possible challenges that the company faces due to negative external factors.

Societal marketing concept

•Societal marketing concept means that company’s decisions should deliver the desired satisfactions effectively and efficiently that preserves or enhances the consumer’s and the society’s well-being.•The new Nestle yelly is in better quality and taste and has a high nutritious value but reduced preservatives.•It is packaged in recyclable container i.e being environmental friendly.•Encouraging customer: For returning 3 used containers of Yelly the customer gets one free Nestle Yelly.•Once the product is in Growth stage of PLC. Company plans to introduce Giving back campaign i.e providing Nestle dairy product (including Yelly) to underprivileged kids. 5% of the proceeds of every Yelly sold will fund the campaign.

Action Plan

March: pre sales promotionApril: Launching of productMay: aim for breakevenJune: Make profits, contestsJuly: Go to schools, get surveys to improve product.

BUDGET AND CONTROLSI HAVE MY PRODUCT, BUT HOW MUCH IS IT WORTH

BUDGETManagers use budgets to project profitability and plan for each marketing program’s expenditures, scheduling and operations.

Fixed cost = Rs 199,680Variable cost = Rs 773,800Sales = Rs 1,200,000Selling price = RS 40

Sales/selling price = Rs 30,000 expected units. Sales/estimated units = Rs 40 each packet of yelly.

Variable cost each packet = Variable cost/Estimated units = Rs 26 variable cost each packet.

Markup PricingSales - variable cost = margin per unit = Rs 14 margin per unit

Break-even point Break-even volume = Fixed cost/Price – Variable cost = 199,680/40-26 = 14,263

CONTROLS

Controls help management assess results after the plan is implemented, identify any problems or performance variations, and initiate corrective action.

• We will closely check the quality and customer satisfaction. Through this we will be able to react quickly and correct any problem that may occur.• We would also monitor the response of competitors or new technology and alter our marketing, pricing and distribution strategies as needed.• Warning signals that show deviation from the plans that include monthly sales and monthly expenses will also be monitored• We will also evaluate the market response and develop more variations to our product or target different segments as the needs develop.

THANK YOU!