Promotional Strategy

Group-10:
Ameya Kelkar (PGP25006)
Geya (PGP25043)
Saurabh Kamble (PGP25212)
Souvick Paul (PGP25102)
Sulabh Sharma (PGP25052)
Swapnil Thakre (PGP25160)
NESTLES SLIM MILK

Submitted to:
Dr. Neelam Kinra
Company background
Nestle is the largest nutrition and foods company in the world. It is headquartered in Vevey,
Switzerland. It originated as a result of a merger in 1905 of the Anglo Swiss milk company
and the Farine Lactee Henri Nestle company. The company operates in 86 countries of
which India forms a part .On a world wide scale, Nestle has different brands in the
categories of bottled water, ice cream, pet care, drinks, products in the kitchen and
breakfast cereals in addition to the categories available in India. Not all brands of Nestle are
available in India. The company started off when Henri Nestle wanted to provide a formula
for infants which would act as food for them. The company has expanded a big way since its
inception by acquisitions. Infact Maggi, which is one of the most well known brands of
Nestle in India was acquired. Nestle has around 6000 brands throughout the world.
Nestle India is a subsidiary of Nestle S.A. of Switzerland. It is headquartered at Gurgaon and
takes care of all the activities of the South Asia region which includes India, Srilanka and
Bangladesh. It has seven factories throughout the country which manufacture its brands.
Nestle operates in four categories in India which are milk products and nutrition, beverages,
prepared dishes and cooking aids, and, chocolates and confectionary.

The product
Nestle has 11 brands in India pertaining to the division-milk products and nutrition. These
brands include different types of milk and dahi, raita, ghee, dairy whitener, yoghurt and
condensed milk. The product on which we intend to work is Nestle Slim milk. Nestle slim
milk is said to have a fat content of less than 5% and thus helps prevent accumulation of
cholesterol and stay healthy. It goes through ultra heat treatment to provide bacteria free
milk. One good thing about the product is that it can be consumed directly from the pack
and has a shelf life of 120 days without refrigeration. But once opened it must be
refrigerated. It has an attractive packing which shows a slim waist. This conveys to the
consumer that if this milk is consumed, even they can be as slim as the picture shown on the
pack. The tetra pack is sold at Rs.45 per litre.

Positioning of the product
Brand Positioning is the standing of a brand in comparison with its competitors in the minds
of customers, prospects, and other stakeholders. It is about the strengths and weaknesses
of the product from the customers perspective and an understanding of how different
customer groups perceive the product differently from the competitors brands.
The most important point that Nestles TV advertisement focuses on is the health benefit to
the customers i.e. the product helps in satisfying customers desire of looking slim. Thus
there is the benefit positioning involved in the ad campaign.
The product speaks about the high quality and safety, and also that it has very less fat
content as compared to the other brands in the market.
NESTL Slim Milk ensures high quality and safety. NESTL Slim Milk has a fat content of less
than 0.5%.
This shows that Nestle Slim Milk has highlighted the health aspect and has thus positioned
itself in the health conscious segment of customers.
The product talks about the technology involved i.e. the Ultra Heat Treatment which
provides bacteria-free milk to its consumers. This is a minor distinguishing feature which is
offered by most of the other brands as well. Thus the product also involves some pre-
emptive positioning which is based on a generic feature that the competitors may not have
talked about.
NESTL Slim Milk goes through Ultra Heat Treatment to provide bacteria-free milk to its
consumers.
The company also mentions that the product goes through stringent quality checks and can
be consumed straight from the pack as no boiling is required. This can be taken as the
positioning of the brand among the group of working people who normally are in a hurry
and dont really want to spend much time in boiling the milk and consume it directly from
the pack.

Target Market and Competition
Target Market:
Slim Milk has only 0.5% fat percentage. Hence a major target segments are:
People looking to control cholesterol level
Obese people
Gym-going people
High end buyers who want pure bacteria-free milk
Competition:
Direct product category competitors:
Amul Lite Slim-n-Trim milk
Mother dairy Skimmed Milk
Skimmed Uht Milk Amrit food products
Skim Milk-Continental Milkose India

Indirect Competitors:

Slim Milk faces competition from close substitutes like Double toned milk ( which has min
3% fat), Health Beverages, Fortified milk ,Mil based sports drinks and pro-biotic drinks.
These categories although not strictly in 0.5% fat category do target the same market
segments as above.
Mothers Dairy b-Activ lassi
Nutri-fit probiotic milk
Yakult-Danone probiotic drink
Various local players, state co-operatives like Karnataka Cooperative Milk Producers
Federation Limited (KMF), Tirumala Milk Products (P) Ltd, Gopaljee group, Amrit food may
launch their own various health variants in regional major cities.

Current Promotional Strategy
As of now there are two TV ads and one print ad promoting Nestle Slim Milk. Following are
the print and TV ads from which we can derive the communication objective , baseline and
communication hierarchy for the produce Nestle Slim Milk.

Figure 1: Print ad

Figure 2: TV ad1

Figure 3: TV ad2

TV ad links:
http://www.nestle.in/images/tvchtm/slim%20milk%20&%20slim%20Dahi01.htm
http://www.nestle.in/images/tvchtm/slim%20milk%20&%20slim%20Dahi02.htm
The TV commercials of Nestle Slim Milk basically show that everyone engages in a healthy
routine to stay beautiful and healthy. It creates awareness amongst the customers that if
you can do so many things like exercise, morning walks, eat healthy foods then you should
also try Nestle Slim Milk as it is specifically designed for you.
The commercial creates the awareness and expects the consumers to accept the Nestle Slim
Milk and feel the difference in their desire to stay beautiful and healthy. Basically, it targets
all health conscious people stating Dil Ki Awaaz Hain.
Communication Objective Awareness of Slim milk
Baseline: Dil ki Awaaz Hain
Communication Hierarchy Learn Do Feel

Is repositioning of brand required?
Nestl is positioning itself as a nutrition, health and wellbeing company. The public doesnt
know that Nestle has so many products that fit into that category and about the work that
Nestle is doing in the community to educate people on nutrition. At the moment Nestle is
associated with chocolate but the Nestl brand is so many other things as well. Nestle slim
milk is the product aimed at this category.


Figure 4: A forum that compares Nestles slim milk and Amul taaza milk.

Nestel slim milk in the healthy milk category can be positioned against competing brands on
a perceptual map. A perceptual map defines the market in terms of the way buyers
perceive key characteristics of competing products.

Figure 5: Brand positioning

Nestle currently positions itself as in the high quality and high price segment which puts
itself as a premium brand. Amuls taaza milk is still considered as higher quality and
available at the lower price. Thus Nestle slim milk is seen more as a cowboy brand.

Figure 6: Perceived positioning


The reasons for this are:
High price premium charged by Nestle compared to competitive brands.
Currently Nestle is perceived as a chocolate company more than a health company.
Amul has focused on health since the beginning and continues to position itself as a
health company
Thus, Nestle slim milk requires a repositioning.