Project KYSO

Summer Internship, 2021- Mid Review

Harsha Bhatia, XLRI Jamshedpur

Prepared under guidance of: Jagriti Rawat

 Objective & deliverables

PROBLEM STATEMENT
Help design the product and the route-to-market strategy for a new 2+ toddler range of food product

PROJECT DELIVERABLES Primary deliverable- Identify the Route-to-market strategy

1. Where & which channels to sell in?
2. Why that choice of channel?
3. How to sell?

Secondary deliverable- Assist in New Product Development

1. Concept refinement & testing
2. Competitive benchmarking
3. Recipe ideas for pouches and pasta meals

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 Need for a new RTM strategy
Targeting a new type of mother; gaps in baby food sales channels

OUR NEW TYPE OF MOTHER COMPARING BASIS DISTRIBUTION CHANNELS

Segmentation of mothers
Toddler brands are not prescribed, they are consumer driven. Hence,
100%
they may be bought at stores other than the chemists.
80%

20
Where is baby food sold?- top 4 retail channels
60%
50.00
43.88
40% 21 Uncompromising 45.00
40.00 36.61
pioneer 35.00
20%
30.00
25.00 20.86
0% 17.42
20.00
Relaxed Indulgers Optimistic Traditionalist Uncompromising Pioneer 15.00
10.00 6.43 7.98
Self centered Insecure strugglers Striving Researchers 4.55
5.00 2.21
0.00
Profile of mothers Health & Beauty Traditional grocery Modern trade E-commerce
specialists stores

SEC A bracket Nestle India toddler nutrition India

Tech savvy Big opportunity in the e-commerce space- customers are

Lives in metro cities present there
Follows trends
Buys organic products (in various Traditional grocery & Modern trade (highest contribution
categories) which shows her openness to from supermarkets) is underleveraged
premium 3 Source for India data: Euromonitor
Data based on sales value
 Two-phased, multi-source approach adopted

PHASE ONE PHASE TWO

Identifying opportunities & challenges Formulating solution

LOOKING OUTSIDE
▪ Priority channels with reasons- verifying results
▪ Semi structured interviews with TG
from Phase 1 & learning from other BUs to further
▪ Channel partners
evaluate channels
▪ Other baby brands
▪ Design a Launch package per chosen channel

LOOKING INSIDE
NEW PRODUCT DEVELOPMENT
▪ Toddler brand managers
▪ CCGSD & e-business 1 Assist in concept refinement

2 Benchmark products in the pouch & pasta

Zero-in on channels through preliminary analysis

3 Suggest new recipes for the same
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 Three shopper profiles identified, based on how they buy baby products
PERSONNA 1: Housewife
Channel: Supermarket
(GT& MT)
Browsing behavior is high which
often leads to trials
Kids accompany mom & attractive
packaging & toys influences them
Mother does a ‘No harm to the
kid’ check when buying
PERSONNA 2: Working mom
Channel: Online
The journey is short and quick for
repeat purchases. Higher frequency
Children are not involved as an
influencer during the journey
Word of mouth recommendation is
the most credible, followed by
ratings and reviews for new product
PERSONNA 3: Father
Channel: Chemist
Chemist recommendations
are highly credible
Usually on auto-pilot mode in a
chemist store.
Good brand propositions &
attractive packaging influence
the buyer
 Market overview (Types of RTM)- baby food brands in stores is a white space
Primary channel
OFFLINE BRANDS ONLINE FIRST BRANDS ONLINE MARKETPLACES
Secondary channel

Tertiary channel

CHANNEL COVERAGE
CATEGORY COVERAGE

Baby food
products
Non-food baby
products
Other
categories

E-com Store D2C E-com Store D2C E-com Store D2C

Traditional channels are used by E-commerce is used to engage Trying to become omni-present,
mass brands to drive volume shoppers & create awareness by leveraging their platform &
new-age brands expanding elsewhere
 Evaluation criteria for channels for channel design

EXTERNAL FACTORS INTERNAL FACTORS

Need for Tangibility

Tech savvy Strengths in current Willingness to
Customer Category awareness channel mix pay/experiment- where
specific can we find buyers who
Credibility in customers Current investment
factors are willing to purchase
mind Future Investment premium products?
Need for recommendation SKU size & weight
Return on investment
Producer Product
Ability to leverage Financial metrics such Standardization
related related
pester-power as Gross Profit Margin,
Touchpoints factors factors After sale services
Channel servicing Payback period
with Availability of
shoppers Other metrics such as complementary products
No of shoppers present
visibility, market share,
Occasions to generate share of voice, share of Ability to raise awareness
trials wallet. about the new product

Stage of life cycle of Association with the

Market size snacks category
the product
Market Number of competitors
& their size
related
factors Exp. of category growth
Exp. of channel growth 7
 When ranked basis factors identified: supermarkets, chemists & e-commerce
come out as best options
Basis the study conducted so far, all the channels have been ranked with 1 being the best and 7 the worst.

Willingness
Shopper Occasions Leveraging Association Expectation
Nestle’s Trackability to
CHANNELS/ FACTORS Credibility Servicing to the of channel
presence for trial pester presence of metrics pay/experi
category growth
power ment
E-commerce (grocery channels & general websites) 3 1 7 6 1 4 1 5 2 2
speciality stores- online + offline 4 5 3 2 7 6 3 6 2 1
Direct to customer & Social media shops 7 2 6 7 6 5 2 6 1 4
Supermarkets (GT & MT) 2 3 1 3 4 1 6 4 4 3
Grocery- large 5 6 2 4 5 2 6 3 6 5
Grocery- small 6 7 5 5 3 2 6 2 7 7
Chemists 1 4 4 1 1 7 4 1 5 5

Note: Other channels identified: RTM (Wholesalers, RDs) & Bakeries will be evaluated in the next phase of the project.
Preliminary analysis suggests that Chemists, Supermarkets & E-commerce are viable channels

E-COMMERCE SUPERMARKETS CHEMISTS

Opportunities Opportunities Opportunities
High penetration in metro cities High browsing behaviour Strong widespread Nestle network
Ease of tracking metrics Occasions for in-person sampling TG already present, trust is high
Remarketing & targeted promotions Children a part of purchase journey Perception of genuine products

Challenges Challenges Challenges

Difficult to build trust online Working moms don’t frequent here Consumers don’t associate
Large clutter of brands Under-leveraged by Nestle Nutrition chemists with the snacks category
Not volume driving Uncertainty in a post COVID world Shopping usually on auto-pilot mode

Objective Objective Objective

Build awareness about the brand Drive volume and build trust in Leverage Nestle’s strength and
& educate customers about the the brand and engage both the the large number of shoppers that
category mother & child. frequent this channel, including
fathers
 Launch Package for the channels- The Way Ahead

ACCESSIBILTY ARRANGEMENT POSM

Ensuring that the product Point of sale material to

Ensuring that the product is
reaches the shopper and build awareness & influence
visible and draws the
vice versa. the shopper
attention of the customer.

RECOMMENDATION STRENGTHS
SALES PROMOTION PACKAGING
STRENGTHS

Building credibilty through Offers, discounts & bundling Attractive packaging for the
mothers advocating our at optimum cost to the child & optimum SKU size
products. company. for the mother

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 My learnings

FROM THE PROJECT AND BEYOND

Importance of customer-centricity: Caring for each other: People taking out

A foundation for gaining the customer’s trust time to help me with my project; Nestle
– an essential, especially for this category being humane to current problems – makes
each one of us more enriched and happier.

Category creation: Identifying analogous

categories and drawing parallels for our A thorough understanding of deliverables:
category. e.g., snacks for adults, baby care Is crucial for steering the project in the
right direction

Market dynamics: Specialised brands are

taking a lead in this category, with an Communicating clearly: Although more
internet-first approach. How traditional challenging in these times, it is the key to
players are making space for themselves in efficient working and learning
the market is noteworthy.

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THANK YOU!

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