Promotion Strategy Fitness Nestle Free Sample

Nestle Promotion Strategy. – Writing 1 Casestudy February 7, 2010 Nestle constitutes the bigger corporation in the field of research and technology of foods. Her annual investment in Research and Growth is the biggest of the branch while her personnel in this sector exceeds the 3. 000 people.

The Nestle Research Centre in Lausanne, where is carried out the basic research, is recognized globally as one of the leading centres of researches in his type with above 300 publications in valid scientific publications each year. The main activity of Group Nestle, which constitutes the bigger enterprise of foodstuffs worldwide, is focused in the sector the general and special human diet.

Even if initially her work was based on the milk and the special products of diet for children, many still products were added in her activities with the byway of years, such as chocolates and (CRUNCH, CAILLER, KIT KAT, AFTER EIGHT, SMARTIES etc), coffee (NESCAFE, etc), drinks (NESTEA, NESQUIK etc), cooking products (soups, broths and mash MAGGI, pastas BUITONI, tins LI[B]BY’S etc), products of refrigerator (yoghurt CHAMBOURCY, ice-creams NESTLE, MOTTA and CAMY, desserts etc), natural metal water (PERRIER, VITTEL, SAN PELLEGRINO etc), frozen products (LEAN CUISINE) and products of cerials (FITNESS, CLUSTERS, CHEERIOS etc).

Also,in our days NESTLE is taken action in the sector of products of diet of small domestic animals (FRISKIES, GOURMET, FELIX etc), as in the sectors of ophthalmologic (ALCON, OPTI – FREE etc), dermatological pharmaceutical and cosmetic products (NUTRADERM, BENZAC etc). In Greece, Nestle has presence above 100 years and constitutes today one from the bigger industrial companies of foods and drinks. The group Nestle in Greece is today constituted by the companies NESTLE GREECE S. A, NESTLE GREECE ICE-CREAMS S. A, GROUP of CERIALS GREECE. and ALCON INTERNATIONAL GREECE LTD, has totally in 4 factories and occupies in total 1350 people.

For the 2006 it realised turnover of 460,6 millions of Euros, with profits above 70 millions of Euros. Chairman and Directing Adviser of Group in Greece is Mr Evangelos Kaloysis which, then long-lasting international military service in the maximum levels of Nestle, undertook also the responsibility of wider region of South-eastern Europe that includes the emerging markets of Albania, Bulgaria and FYROM, as well as Cyprus. It should be marked that the bigger percentage of annual turnover of Group in our country makes from products of factories of Greece.

In this assignment we examine and analyze the promotion strategy for the product of Nestle which is named Fitness nestle and it is breakfast cereals mainly for women. The fitness product is the best for women ‘line’. Fitness breakfast cereal helps women manage their line in a sensible way. Fitness helps women not only take off weight but also keep it off as it is made with delicious whole grain flakes. Research shows that women who eat more wholegrain tend to weigh less and are less likely to gain weight over time. Fitness also contains essential vitamins and minerals.

Analytically the ingredients for the product are Kellogg’s Special K Cereal (51%) (Rice, Wheat {Wholewheat, Wheat Flour}, Sugar, Wheat Gluten, Defatted Wheatgerm, Dried Skimmed Milk, Salt, Barley Malt Flavouring, Vitamin C, Niacin, Iron, Vitamin B6, Riboflavin (B2), Thiamin (B1), Folic Acid, Vitamin B12), Glucose Syrup, Chocolate Pieces (11%) (Cocoa Mass, Sugar, Emulsifier {Soy Lecithin}), Fructose, Dextrose, Sugar, Humectant (Sorbitol, Glycerol), Vegetable Oil, Emulsifier (Soy Lecithin), Antioxidant (E320). First of all it will be defined the target audience.

Geographically the whole region of Greece will be in target. Everywhere in Greece exists a supermarket which offers Nestle Fitness product line must be part of the target. In conclusion geographically there are no limits. Thus , all city sizes will be concluded. In order to be more specific for the target audience will be defined the demographic characteristics. Firstly both gender can use the product, but mainly women are the potential and major consumers, thus women will be focused. Fitness product line is addressed to individuals from 18 to 37 years old.

Family status for these individuals is young, single, young married with no children and young divorced. Income segment target is ;= 10000 annual salary. Demographically exist no other constraints. Phychographically the target will consist individuals with lice style status upon the general average and their personality will be characterized as ambitious and selfish. Behaviouristic the target audience will be strong loyal , heavy and regular users, and their market factor sensitivity is more advertising. The promotion strategy will be planned only for a part of the product line of fitness, which need a push.

Fitness bars is a line of 7 different flavours. Each flavour has a unique taste but common scope. The price of one package is 2. 57 euros and contains 6 bars. The main competitor is kellogs, which sales the same package in different flavours 2,61 euros. In order to gain a competitive advantage and gain a bigger market share Nestle will apply specific strategy to the promotion. In the spectrum of promotion strategy, this method contains different types of energies. First of all the action , which will take place into the place a consumer can purchase the product.

Mostly this point will be in supermarkets or other types of stores where Fitnees bars are sold. A hard-paper stand will be set at the 300 biggest supermarkets. That stand will announce to the potential customer the special offer of the product. That offer will be a 0,30 euros discount and a membership to a contest. The action should represent AIDA’s principles. Attention, Interest, Desire, Action. Attention will be paid by the effectiveness of the stand. Stand will be constructed like a huge Fitness bar with horizontal sleeves and attractive colours.

The basic colour for the background will be yellow, because has high impact to catch consumers eye particularly when used with black. After, the board will be in green, because this colour is a symbol of health and freshness and popular for mini products. Inside the packing will be concluded a coupon, in which the purchaser will have the possibility to take part to a contest with a winning prize of free annual membership fee in a popular gym. For this action the costs are: 5000 euros for coupon production, 25000 euros for the stands and no cost for the gym because of a deal.

The second part of the promotion strategy, which will follow after the 20 days length of the first action is to promote the fitness bar product line to potential consumers through scientific dietician and nutritionist persons. In Greece exist around 1. 000 people with the previous characteristics. The action will be focused only to the top 150. These persons will be supplied with promotion material, which will explain in scientific terms product healthy characteristics. More specific, Nestle will provide material, which will illustrate the whole product line of the bars and give them as a present posts with a subject from the health world.

In addition 10 packages of the product will be send to these persons. The costs of these are: 1500 euros for the material, 3000 for the posts. Finally the last action of the promotion strategy is to approach the 100 biggest gyms around Greece and offer them the range of the bar product with the effectiveness of 50% discount. In that way, Nestle makes two goals. First net sales, even with a good discount and secondly a presentation of the product into the place where the target audience mostly can be found. Totally the costs of these promotion actions will be around 35000 euros. According the desired sales results, costs sound tiny.

Desired results are a market share boost of 5% for the next 6 months and an estimated 6% sales growth for the next year. References “NestleWatch. org”. NestleWatch. org. http://www. nestlewatch. org. Retrieved 2010-01-08. “FoodAndDrinkEurope. com”. FoodAndDrinkEurope. com. 2007-12-05. http://www. foodanddrinkeurope. com/news/ng. asp? n=81829-nestle-vivartia-milk-prices. Retrieved 2010-01-08. “Nestle: Following the Customers’ Tracks with Google Analytics”. Google Analytics. Archived from the original on 2007-02-20. http://web. archive. org/web/20070220225956/http://www. google. com/analytics/case_study_nestle. html. Retrieved 2007-02-21

Manufacturing And Vertical Integration

As products and their marketing become more complicated, there is a greater need to combine resources that are located in more than one country. There is a great interdependence among inputs and a strong need to establish tight relationships in order to ensure that production and marketing continue to flow in any industry. Within the tire manufacturing industry vertical integration is the concentration of multiple stages of production.

The tire industry and each firm within that industry tends to be highly vertically integrated for many own and operate their own distribution centers and currently purchasing of rubber manufacturers to keep cost low. Currently the demands with the tire industry are changing; the cost and production of raw materials are changing as well as the social requirements. With that being said, the tire industries are trying to gain control over cost of their raw materials.

Bridgestone’s key operational strength is its vertical integration. In the tire business, the company operates fully integrated development, production and sales facilities, which cover all stages of tire production, including natural rubber, synthetic rubber, carbon black and steel cord. Bridgestone also boasts of one of the world’s largest company-owned and franchised tire retail networks. The company also owns integrated development, production and sales operations in other diversified businesses.

This initiative was a part of the company’s strategic program to expand its in-house production capacities of raw materials for tires and diversified products. With the establishment of a solely owned rubber manufacturing plant, the company expects to strengthen its ability to provide stable supplies of raw materials. As a part of its geographic expansion programs, Bridgestone is also focused on setting up manufacturing sites in the low-cost but high-growth potential regions to enhance their competitiveness throughout their supply chain.

There is also continuous work on environmental adjustments and products. Bridgestone’s vertical integration strategy has many benefits and liabilities for the company. The first that comes to mind is their acquisition with Firestone who was failing financially. That was both a benefit to expand their product reach, their marketability but a liability from taking a risk on a failing company. From a liability standpoint, Bridgestone lost over 1 million dollars the first year and had numerous strikes to deal with.

The benefits that Bridgestone will endure with purchasing of their own rubber manufacturing facility are the cost savings of producing their raw materials. Raw materials are also a liability for if the right quality is not met, then there are quality and safety concerns with the production of the tires. Another benefit from Bridgestone’s vertical integration is the process to maintain and further enhance investment efficiency. The entire process revolves around further enhancing their quality of products and strengthening their internal manufacturing.

A Critique Of The Case “Li & Fung

A critique of the case “Li & Fung (A): Internet issues” is presented below in light of the following two key methodologies: SWOT analysis Porter’s five forces model A SWOT analysis of Li and Fung: Strengths of the firm Reputable name and branding. Well informed and educated management Tightly integrated supply chain management with client base. Established decentralized management style Ability to operate in both hard and soft markets. Existing internal capital Successful acquisition strategy (bought suppliers and competitors).

Flexible and interactive design process. No inventories to manage. Weaknesses Lack of initial knowledge on developing an e-commerce B2B profile. Lack of qualified personnel and subject matter experts to implement such a large undertaking. Poor information gathering and research prior to adopting the B2B portal strategy Insufficient knowledge about the behavior of SMEs in similar portals The initial plan of developing a B2B portal was based on the old economy model, change was not sufficiently accounted for. Opportunities

The internet is a true enabler to incorporate a more streamlined supply chain management system. Allow customers to be able to be an intricate part of the design process up to the point of product manufacture. Allow SMEs to participate in product procurement while enjoying a smaller commission rate. Ability to establish a business plan to develop markets in which surplus products could be sold (Electronic Stock Offer – eSO) Threats Phasing the “middle man” out of the trading scheme is a risky strategy and an attempt to alter an existing market mechanism.

Possible loss of key employees to other Internet companies through the promise of greater wage compensation for newly acquired skills. Fear that an online company would acquire or partner with an old economy trading company, becoming an overnight competitor. If the technology was outsourced, then the company could become dependent on that outside company for their IT needs especially when an upgrade was needed. The possibility of outside companies being able to access proprietary information, strategy, or the complete Li & Fung business model.

Exposing the business to a new business environment with insufficiently prepared change strategies Service quality issues in an area where the firm has never operated before could tarnish its reputation and result in loss of value The new e-commerce endeavor made some of their larger customers nervous in that they were afraid that Li & Fung would be compromising their business by working with their direct competitors. Porter’s five forces model: Traditional Rivalry – most of Li & Fung’s rivals have been acquired. Bargaining power of suppliers – sold raw materials to suppliers at a premium.

Bargaining power of buyers – efficient and considered high value. Threat of new entrants – low threat of entry. Threat of substitute products- possibilities of threat in this area. Business Concept Li & Fung is a long standing Hong Kong based company that that has evolved from an export trading company to a coordinator of value-added services across the entire supply chain in a global, open manufacturing environment. They assess the clients’ product and delivery needs and orchestrate supply, manufacture and delivery in a very tailored and specialized way. Capabilities

Li & Fung achieve their high level of service through an executive relationship of two close brothers who form a unique synergy of strategy and execution. In addition, they give senior managers sufficient autonomy to respond to needs of specific customers. They are aided by a centralized IT as well as financial and administrative support in Hong Kong. Managers have their own compensation package, and bonuses are based on profits with no ceiling. There is great incentive to achieve goals. Li & Fung use a three year planning approach in which a goal is established and a gap analysis aids in identifing steps to get there.

Each three year plan had a short name or slogan for the ultimate goal. Through strategic acquisitions to expand reach of service into new markets such as Europe and India, Li & Fung had grown to nearly five times that of its closest competitor by 2000. Value The value Li & Fung provided its clients is the view and reach into a global range of choices for performing tasks. Through their knowledge of the various raw materials suppliers, manufacturers and shippers, Li & Fung could provide a high degree of quality and reliability in all aspects of order fulfillment.

This knowledge coupled with sophisticated centralized information management made its services quick and reliable. Threat of Competitors The threat of e-commerce over the Internet was not as direct as expected. The brothers were concerned about disintermediation but found that most Internet businesses were not well conceived. Instead they learned that the threat came from the hype of Internet businesses capturing more investment capital thus enabling those companies to invest greatly in their companies and hire away talent from Li & Fung, for example. Continuing Threats

In the next three year plan, Li & Fung will need to assess the possibility and cost/benefit of end-to-end supply chain communications based on improved technology in developing countries. Li & Fung maintain their own staff, on the ground, with each supplier, thus ensuring valid business data in their system. From a market assesment viewpoint they will have to prove the value of that cost versus other entrants into this field that may assess suppliers differently. Channel conflict would continue to be a threat with each increasing IT improvement. They will also need to attend to the legacy clients and how they fare against the B2B portal.