The Segmentation, Targeting, Positioning & Differentiation of different Nestle products. 4P's which help the brand for better marketing strategy.

1. STPD & 4P’s
of
Nestle Products
Group Members
S.Hari thirumal
Sibi
Priti Thakur
Manish
Aritra Sen

3. 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.

4. • 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.

5. Nestle Kit-kat
Product:
• 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

6. 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.

7. 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

8. 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

9. Baby Food Products

10. 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

11. 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 ‘

12. 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

13. 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

14. 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

15. 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

16. MAGGIE KETCHUP

17. 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

18. •Positioning
Tastier , spicy ketchup from the pure ingredients at a moderate price.
•Differentiation
Fresh tomatoes content is more than others.
International standard production .
Packaging is different .

19. 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

20. • 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

21. 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 RETAILER
FINAL
CONSUMER

22. PRICE
• Pricing policy-
Quality oriented
Mark up pricing
Quantity discount
High priced

23. 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

25. Segmentation
 Demographic : Age (5-60 yrs), all genders
 Geographic : Pan India.
 Psychographic : Middle class, upper middle class.
Targeting
 Adult (18-40yrs)
 Urban area

26. 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 powder
with high nutritional value made to add a rich
and smooth taste to the consumers’ tea

27. PRODUCT
 Nestle Everyday Dairy Whitener (1986)
 Perfectly consistent homogeneous milk solution (without clots
and granules every time)
 140 years of expertise; A survey across 4 cities of India showed
that nearly 8 out of 10 people prefer tea made with Nestle
EveryDay
 Nestle is adapting the packaging of some of its products to ensure
consumers 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).

28. 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.

29. 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.

30. PROMOTION
 The same theme is propagated in its ads – which say ‘Chai Mazedaar Har
Baar’. So, the focus is on functional benefit of consistently great taste
 In Corporate Nestle website visitors can view TV ads for the Everyday
campaign.
 Free samples to hotels (sachet packet)
 Milk Powder Packing Can (Tinned) be offered to enhance the product .

31. Nescafe Classic

32. 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.

33. • Differentiation : The only brand having highest level of caffeine
• Positioning : 100% pure instant coffee
Differentiation and Positioning

34. • “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

35. Price
• Skimming strategy
• Product Mix Pricing Strategy
• Price adjustment strategy
• Price leadership strategy
• Price flexibility strategy

36. Place
Availability
• Retail Shops
• Malls
• Departmental Stores
• Level 3 goods
• Coverage : Covers mostly the urban areas

37. Promotion
• TV Ads
• Newspapers
• Magazines
• Offers
• Quantity Discounts
• Retail Shelves
• Uses “Pull” strategy

38. 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.

39. STDP
• 5-40 age
• Eating habits
• Usage rate- Medium
• Loyalty- split loyal
Segmentation
• Mothers
• People on the move
Targetting
• Food that is easy to cook and healthy to
eat
Positioning
Differentiation • A complete different product, Taste
maker

40. 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

41. 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

42. 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

43. 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

44. Thank You