Nestlé is the world’s largest food company and has held offices in the UK as early as the

1860s. Nestlé was originally made up of three major companies: Nestlé, the Anglo-
Swiss Condensed Milk Company and Rowntree’s of York. In 1905 Nestlé merged with
the Anglo-Swiss Condensed Milk Company and quickly became known for infant
formula, chocolates and tinned milks. In 1939 Nestlé launched Nescafé in the UK, which
became an immediate success for instant coffee (Nestlé UK, 2012). In 1988 Nestlé
obtained Rowntree’s of York and has since invested over £200 million into the York site
and £100 million in their Tutbury factory. Between the years of 2006 – 2011, Nestlé
invested £224 million in their UK sites (Nestlé UK, 2012).

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With 6,500 employees across 20 different locations in the UK and exporting as much as
£300 million worth of products each year to 50 different countries, Nestlé is not only a
major employer in the UK, but also one of the UK’s food industry’s major exporters
(Nestlé UK, 2012).

In 2002, Nestlé UK acquired Ski Yoghurt from Nestlé Australia and six years later in 2008,
Ski Yoghurt was re-launched with only natural ingredients combining real fruit with
thick, creamy tasting yoghurt and no artificial colours, flavours or preservatives (Nestlé
AU, 2012).

1.2 Previous Positioning of Ski

Ski yogurt is currently positioned as a “naturally delicious product” and its positioning
strategy focuses mainly on its fruit heritage and its value to the consumer. After the last
re-launch of 2008, the new re-designed packaging tries to connect ski back to nature
and puts forward an “all natural ingredients story” by featuring plenty of fruits in their
natural environment for every flavour (Appendices 9.1).

2. Situational Analysis

2.1 Macro environmental analysis

In the analysing of the macro environment of the product category, PEEST analysis is
used to identifiy five main forces which affect marketing decision-making. The five
forces analysed are political-legal factors, ecological-physical factors, economic factors,
social-cultural factors and technological factors.

(P)olitical – Legal factors:

 EFSA bro-biotic dossiers – companies that have vested interest in functional
health adopt a more cautious approach or focus on benefits that have secured
EFSA approval (Mintel, 2012).
 Trade negotiations under WTO. Bilateral trade deals (Doha, 2011).
 Compliance with legislation is becoming more costly
 April 2012 – Dairy UK intention to sign up to the Department of Health’s calorie
reduction pledge which aims to support and enable consumers to eat and drink
fewer calories on daily bases.

(E)cological – Physical factors:

 Environmentally friendly, reduced packaging is being promoted by the
government (recycling – good for corporate social responsibility image)
 Climate change adaptations
 Water management is an emerging priority

(E)conomic factors:
 Unemployment rates on the rise, reaching 8.4% during January 2012 (Trading
Economics, 2012)
 Economic growth of the market – UK yoghurt market grows in a slow but steady
pace over the last year at a rate of approximately 2.5% (Mintel, 2012)

(S)ocial – Cultural factors:

 Good intentions, such as not snacking between meals and eating more fiber,
have become less of a priority in the recent years.
 Preoccupation with trying to loose weight
 Adults within a family are expected to remain the largest population segment
 Strong growth expected in the number of children between 5 and 9 years old
 Projected increase of one-person households (contribute less to volume sales of
yoghurt).

(T)echnological factors:
  The use of the internet through online grocery retailing directly influenced the
supply chain, operations and processes of grocery and food retailers
 Online retail shopping has gained considerable popularity due to the increased
accessed to broadband internet in the UK; 70% of overall market are broadband
users (Keynote, 2010)
 Lack of applied R&D and knowledge exchange as Government reduces funding

2.2 Micro Environmental Analysis

In order to analyse the company’s both internal and external environment, the SWOT
analysis is used to identify the strengths and weaknesses of the organisation as well as
the opportunities and threats from within its market environment.

SWOT Analysis:
Strengths

 Ski is apart of a global established brand – Nestlé

 Nestlé stands for product Innovation
 Strong promotional activities e.g. Exclusive gifts as a part of their promotional
offers
 Product availability and distribution to all major stores
 Perceived as a quality brand
 Strong historical background
 One of the first in the yogurt market
 Strong ability to recover from market share loss in the short term (2008)

Weaknesses

 Frequent re-launches over the years – lacks consistency

 Weak TV advertisements
 Very weak presence on social media platforms – less interactive and
informational, lacking updates
 Current positioning is not consistent with the current image of Ski, therefore it’s
losing its roots
 Frequent re-launches over the years – lacks consistency

Opportunities
  Over three quarters of yogurt users view Ski as a healthy alternative to other
treats (Mintel, 2012)
 Use of social media is growing extremely fast
 Backing of Nestle – known as a established brand
 Spoonable yogurt represents over four fifths of the yogurt market (87%) (Mintel,
2012)
 Consumer engagement
 Capitalize on organic/historic brand positioning
 Increase of online advertising
 Increase of use of internet
 Increase of nutritional awareness

Threats

 Decrease in popularity
 Higher competition from competitors
 Competitors stealing market share
 Due to the Economic downturn consumers switch to store-brands (Mintel, 2012)
 Customers choosing healthier or non dairy yoghurt options
 Brand loyalty – Customers not making the switch from their usual brand to trying
Ski
 Only gaining an older demographic because of history and recognition
 Nestle boycotts within the UK

2.3 Market Trends

Overall since 2007, there has been a 0.9% increase in the eating of yoghurt, with an
increase 7.1% in heavy users, and decreases of 1.9% and 5.2% in medium and light users
respectively. The yoghurt market in the UK is saturated, making it hard to add new users.
Yoghurt is considered a healthy option, with low fat varieties making up 56% of
purchases. The growth of low-fat yoghurts, at 1.9%, has been faster than that of
standard yoghurt, at 0.6%. Those in families are more likely to eat yoghurt compared
with those not. The group that buys the most yoghurt is that of “women and
households with children aged 1-9”. An increase in the number of 5-9 year olds of 11%
is expected between 2012 and 2017, meaning the number of people in the above group
will expand, giving potential for more growth. More affluent families are also more likely
to be consumers of yoghurt, and are likely to consumer more of it (Mintel, 2012).

2.4 Competitors
Within the dairy market in the UK, retailers’ own-label products have significally
increased the competition since due to the economic downturns of the last several
years, consumers tend to switch towards them. The two bigger players of the market are
Danome and Muller which together capture 60% of the spoonable yogurt sales and
continue to dominate the market. The direct competitors of the Ski yoghurt are Activia,
Muller, Yoplait, Yeo Valley, Onken, Munch Bunch, Weight /watchers and own-label
products (Appendices 9.2).

3. Objectives
The roles of objectives play an important part of the overall campaign. Both the
marketing and communications objectives provide direction, focus, values, and a time
frame, while also providing a means by which the success of the campaign can be
evaluated (Fill, 2009)

3.1 Marketing objectives

Increase market share by 1% by June 2013.

Increase volume of sales by 20% by June 2013

3.2 Communication Objectives

Increase re-launch brand awareness by 30% by June 2013

Impart nutritional knowledge, brand heritage and Ski yoghurt diet plan to both males
and females, ages 25-40 within the first 2 months of the re-launch.

Build project the position of a healthy, active, and convenient product image of Ski to
both males and females, 25-40 years old within the first 4 months of re-launch.

Increase shelf space in supermarkets by 20% by June 2013

Expand saturation on trade grounds by 15% by June 2013

20,000 consumers to sample the product by the end of the campaign-June 2013

4.0 Consumer Strategy

4.1 Segmentation
Demographic Trends

According to Mintel (2011), ” The group that buys the most yoghurt is that of women
and households with children aged 1-9″. The current target market of Nestlé is working
mothers, aged bwtween 35-44 years old with older kids. However, an 11% increase in
the number of children aged 5-9 year olds is expected between 2012 and 2017. (REPEAT
and needs a Reference).

This gives potential of growth and more affluent families being more likely to be
yoghurt consumers, and are likely to consumer more of it (Mintel, 2011). In terms of
social class, AB, C1 and C2, social class who are professionals, supervisory and skill
manual workers, the geographic location of these classes is in United Kingdom. Hence,
the yoghurt market should focus on British customers to gain an effective marketing
strategy.

Behavioural/Psychographic Trends

The reason being that British customers are more concerned with their health. More and
more, they consider calories consumed and fat content to ensure that they are eating
well. Their healthy lifestyle can safeguard them from the widespread obesity epidemic
(Key note, 2012). Some customers, who find themselves lack of time having proper food,
consume snacks instead of main meals. Yogurt is the choice of healthy food of this
target market, containing essential nutrition to make them healthier (Mintel, 2011)

4.2 Target Audience

Ski Yogurt is marketing to group of people who prefer natural yogurt products in
effective quality and sufficient quantities. This target audience covers; working mothers
aged 25-50 with older children. Our target audience would be A, B, C1 and C2
(Appendices 9.3) which primarily concern with health and nutrition. We will expand our
target audiences network with family who would like active activities and has busy
lifestyle.
4.3 Pen Profile
Within the Ski consumer strategy, young families, especially mothers who take a
considerable interest in both their appearance and health will be targeted. In addition,
young working people that like outdoor activities such as exercising, walking, and
socializing. Also, someone who is of a higher social class, and will therefore typically
think more about nutrition in trying maintain a more attractive physical appearance.

A good approach to reach the target audiences is through advertising messages on

television; press media and outdoor media that attract the consumers. Alternatively, a
more efficient communication network is through social media such as Facebook and
Twitter. Accordingly, marketing activity will adapt and respond to changes in customer
behavior.

4.4 Positioning
The aim of the campaign would be to maintain the current positioning of Ski as a
healthy and natural product choice and focus on strengthening the healthy aspect of
the product as well as introducing the “convenience” factor. The ultimate goal of the
campaign would be to move Ski yogurt towards a healthier position among the
competitors within the perception map (Appendices 9.4).

4.5 Creative strategy

Strap line: “How do YOU doSKI?”

From Ski’s previous re-launch in 2008, it has been positioned as a brand with high
nutritional value using only natural ingredients, and no artificial colours, flavours or
preservatives (Nestlé, 2012).

The Ski UK brand is one that naturally composes historical and nutritional value while
also being backed by Nestlé, one of the biggest food distributors in the UK. Starting in
January of 2013, Ski UK will begin their re-launch by focusing on the promotion of new
beginnings, and will accordingly play an important role in influencing consumers to aim
for a healthier and happier lifestyle in the new-year. By enhancing their current traits, the
re-launch and creative strategy of Ski will be positioned as an active brand with high
nutritional value and convenience for those with a busy lifestyle.

In order to support the re-branding of Ski, the colours will change from its current blue,
white and red to a more unique and fresh white, black and green. The new colour of Ski
will directly reflect the active and “green-friendly” image of the brand. Ski yoghurt will
be seen as a product that will enhance your overall health, happiness and lifestyle.

The logo will also change to differentiate Ski from its competitors and to reflect the new
positioning of the overall Ski UK brand. Also, the Nestle logo, currently on the packaging
will become smaller to give the consumer the feel of a more organic, and family-owned
product (Appendices 9.5).

It is shown that the attractiveness of packaging affects the volume of sales and
packaging can be essential in affecting the positioning of a product (Fill, 2009). In order
to attract the attention of Ski’s target market, the packaging of Ski will become more
durable, sustainable and pleasing to the eye to reflect the new active and green image
of the brand.

The basis of the re-launch will be based around the new slogan: “How do YOU doSKI?”
In the advertisements, the produced concept will introduce new ways of eating and
using Ski yoghurt. People will be shown how they can “DoSki”. This will be shown
through sports activities like football, young professionals with busy lifestyles and
health-conscious families.

The look and feel of a product will change while still holding on to its natural heritage
and nutritional value. The overall goal within the Ski UK re-launch and creative strategy
is to enhance the product.

5.5 Budgeting
The media used in the new campaign for Ski includes television, print media, online and
outdoor advertising, and improvement of Ski’s website. Also, sport competition among
primary schools, ski holiday competition, sampling during the finals of the competitions
and in supermarkets, sales promotion in the form of coupons and repackaging are part
of the marketing activities. Furthermore, the costs of pre-testing are calculated on the
basis that Ski will need 1 focus group for the testing of the packaging; one focus group
testing perceptions; and one focus group testing advertisements. The pre-testing of the
awareness will be held by ambassadors in front of 50 central stores in London and
Cardiff. The post-testing of the awareness will be the same in the end of the campaign
and the post-testing of the perceptions will require one focus group. Additionally, the
production cost of the advertisements is estimated as £30,000 as 5% of the total
advertising tools used.
The budget of the campaign is estimated at about 5% of the intended market objective
to increase sales to £32 million in six months. During that time the budget should not
exceed £1.6 million. The total amount of the assessed costs is £ £1,565,467 inclusive of
£50,000 for unexpected costs, especially having in mind that a competition among
children can bring many unplanned activities involving extra costs. (Appendices 9.7).

6.0 Evaluation

6.1 Pre-testing
To assess how well the new campaign will be received, tests will be carried out upon the
prospective advertisements, guiding developers towards advertisements that are
conducive to fulfilling the objectives. Five focus groups will used as they can accurately
determine the reception of the advert, and therefore inform the creative process.

To avoid bias brought in by participant’s interpretation of their own views, projective

techniques will be used. Specifically completion will be used; where partially formed
sentences are given to participants, helping to reduce bias and to structure responses in
a way that gives responses that are easy to analysed. These should be carried out for all
advertisement media developed for the campaign.

6.2 Post-testing
Examination of the sales figures before and after the campaign will indicate whether the
marketing objectives have been achieved. An examination of data showing any
fluctuations in shelf space will of course show whether the desired increase in space has
been achieved. Similarly, if all samples of the yoghurt are given out, the target number
of people trying a sample will be met with room to spare.

Awareness will be measured before and after the campaign to show whether the
increase in awareness sought has been achieved. Measurement of this will be carried
out with surveys. They will be carried out using opportunity samples outside
supermarkets in two city centres within the UK. The locations of central London and
Cardiff city centre have been selected as they are within the areas of highest and lowest
consumption of yoghurt respectively, giving a more representative sample (Mintel,
2012).

Focus groups will be used, separately to those used in pretesting, to show changes
brought about in the perceptions of ski. Two groups will be run before the campaign,
and two after.
Monitoring the campaign and Public Relations Activities

Considering the commencement of Ski’s social media presence in the UK, analysis of
feedback from consumers and press will be carried out continuously during the
campaign. Thus making it possible to refine and adapt.

Using a number of different evaluation methodologies is key giving a holistic insight

into the effect the campaign generally (Fill, 2009); and a variety is utilised here, giving a
rounded picture whilst showing how the objectives were fulfilled.