C32A

Caluya, Chu, Flor,

Levanza, Tan Chua
thinking
hats
FDNBUSM
 the black hat
perespective:

The Black Hat is Spot the Probably the most

judgment; the devil's difficulties and powerful and useful
advocate or why dangers; where of the Hats but a
something may not things might go problem if
work. wrong. overused.
 the problem at hand:

“Nestle Oat-
Chips”. It is an
During the innovative oatmeal- The CEO for
annual Strategic based chips that aims to Nestle Philippines
Meeting of the rival Jack –n-Jill’s Nova
is impressed with
Chips. The Marketing
firm, the Manager is very the marketing
Marketing convincing in her pitch but would
Manager presentation to the rest
proposed for of the management like to gather the
Nestle
team on the thoughts/opinions
attractiveness of
Philippines to introducing the “Nestle of the rest of the
pursue a new Oat-Chips” as the management
product for 2023 company’s newest team.
product for the new
year.
 BACKGROUND

Nova Multigrain Chips is one of the products made by

Jack n Jill. A well-known company that sells snacks,

chips, and other household edibles. Nova is similar to
diet chips in that the multigrain will definitely
contribute to your daily fiber needs for better
digestion. Moreover, Nova, as opposed to corn and
potato chips, contains fewer calories, fat, and sugar.
Although our product aims to be on par with their
Nova chips, there are some noticeable gray areas.

 As the Finance
Manager of Nestle
Philippines, what
will be your
decision?
Would you support
the Marketing
things to keep Manager‘s proposal
or not?
In coming up with a
in mind decision, what will
be your major
points of
consideration from
a financial
management point
of view or
perspective?
gray Firstly, popular products that are
made from oats are either snack bars

areas or oatmeals, however, there are still

no known oat chips in the market
which may give us a hard time
introducing our latest product.

Secondly, though our target market would Early success may be

be the same as Jack and Jill’s Nova chips,
possible due to the curiosity
the risk of getting the favor of those target
markets would be likely low as customers of some consumers but
of Nova chips by now have set the brand attracting long term
as the standard or what that product consumer preference may
should taste like thus developing a
preference for the competitor.
prove to be a different story.

 Another possible point of
discussion that we can discuss is
the production costs of this
product and how it will affect the
sale price of the product. Assuming
that these oat chips will be made
chiefly with oat flour, it may be a
less budget-friendly option
compared to its main competitor
which is Nova Chips as they only
use about 7% of oat flour in their
multigrain chips. This may make the
new product less attractive to
consumers, especially in the market
of chips and junk food where
consumers are more likely to go by
taste and budget-friendliness
rather than nutrition. Nova Chips
are able to keep its place in the
market due to its taste and budget-
friendliness and if the new product
cannot replicate that then it will not
see much success in the chips and
junk food market.
Lastly, it is also worth taking a look at the
necessary investments needed to bring this
product to life. There are a lot of things that we
need to take note of, first and foremost is that
Nestle currently does not produce any similar
products to the proposed oat chips. The closest
product Nestle has to the oat chips are cereals
but those still cater to a very different market
which is focused more on health rather than
taste. The lack of equipment and experience
means more investments are needed in hiring
new personnel and buying necessary equipment
for a product that has a small chance of success
in a highly saturated market. Losses from early
production and sales issues will also be very
likely due to the lack of experience and exposure
in the new market. Nestle is a brand known for a
lot of products such as cereals, milk, and others,
but not chips and junk food. Releasing a product
aimed to rival Jack n Jill’s Nova chips, which is a
known staple in the market, may prove to be a
rather disastrous experiment in a financial
perspective.
Thank
You!
Do you have any
questions?