Nestle

Nestlé India Media Spending: 

N estlé I ndia Media Spending

Objective: 

Objective Classify the different brands under Nestlé Identify the total media budget and individual spending on ATL and BTL activities

All about Nestlé: 

All about Nestlé Nestlé is a Swiss-German word which means “Little Nest” also being its trademark Nestlé was incorporated as a limited company in 1959 and in 1978 issued shares to Indian public (to reduce foreign holdings to 40%) Nestlé is the worlds’ number one food company and is at number three in India after HUL and ITC 5th largest company of the world according to its turn over 2 million 31 thousand people employed from all over the world Present in 81 countries of the globe having 522 factories with 7 factories alone in India Over 700 products renovated or innovated in the past five years, with wellness in mind

Opportunities with Nestlé: 

Opportunities with Nestlé Potential for expansion and growth in small towns and other geographies Increasing demand for premium and quality products Development and awareness of health care nutrition Expansion of product lines with the help of already available state of the art Nestlé expertise

Product categories under Nestlé: 

Product categories under Nestlé Today Nestlé is present in different markets with the following main brands:- Baby Foods Beverages Bottled Water Chocolate & Confectionery Dairy Products Prepared Foods

Products marketed by Nestlé India: 

Products marketed by Nestlé India Nestlé India has divided its product portfolio into four different segments , namely- Milk Products and Nutrition Chocolates and Confectionery Beverages, and Maggi (noodles, soups and ketchups) Separate marketing mixes have been developed for these four different segments. The advertising and promotion techniques used and place of marketing and of course the product of one segment are very different from products of another segment

Product range - Maggi: 

Product range - Maggi

Product range - Nescafé: 

Product range - Nescafé

Product range – Chocolates and Confectionary: 

Product range – Chocolates and Confectionary

Product range – Milk and Milk products: 

Product range – Milk and Milk products

Beverage Solutions: 

Beverage Solutions

Media activities: 

Media activities Nestlé mainly focuses on ATL and BTL activities to promote their products ATL – Print, Radio and Television BTL – On ground activities, promotions and Events

Insight: 

Insight ZenithOptimedia is  the media planning and buying house for Nestlé India According to the sources Nestlé has planned to invest in between 250 cr – 280 cr this financial year (real figures) Nestlé has always used more of traditional media rather than going unconventional Indian brands have played it safe with conventional forms of BTL like events , road shows, sampling, exhibitions Recently Tata Tea increased its budget for BTL activities to help increase its volumes. Rasna too doubled its spend on consumers promotions. Dabur foods is equally splitting its ad budget (50:50) for advertising & promotions & so is ITC

Media budget: 

Media budget In 2011 the total spending on advertising and promotions including all the ATL and BTL activities rounded to rupees 3,276,141 thousand i.e. 327 crores approximately Now different brands under Nestlé umbrella spend their budgets in a different way ; some of them spend more on ATL and less on BTL or vice-a-versa

Actual spending percentage: 

Actual spending percentage Spends Brand ATL BTL Baby & Me 95% 5% Bar One 90% 10% Everyday Dairy Whitener 85% 15% Maggi Bhuna Masala 85% 15% Maggi Coconut Milk Powder 100% 0% Maggi Magic Masala 95% 5% Maggi Noodles 80% 20% Maggi Noodletz 85% 15% Maggi Pazzta 85% 15% Maggi Sauces 100% 0% Maggi Soups 100% 0% Maggi Souper Roni 100% 0% Maggi Veg. Atta Noodles 85% 15% Milkmaid Condensed Milk 100% 0% Nescafe Classic 80% 20% Nescafe Sunrise 80% 20% Nescafe Sunrise Premium 80% 20% Nescafe Sunrise Special 80% 20% Nescafe Vending 0% 100% Neslac 100% 0% Nestea 95% 5% Nestlé Chocolate Éclairs 100% 0% Nestlé Diwali Gifting 100% 0% Nestlé Kitkat 90% 10% Nestlé Milky Bar 80% 20% Nestlé Milky Bar Éclairs 100% 0% Nestlé Munch 90% 10% Nestlé Polo 90% 10% Nestlé Munch 90% 10% Start Healthy Stay Healthy 85% 15%

Possible options: 

Possible options Bar One, Maggi soups, condensed milk and Nestea are the other products that are not being given importance in the BTL category; so it has got a lot of potential to generate good business Nescafe vending is totally marketed through BTL activities ; so this particular brand can be focused upon for generating business as a lot can be done

Overall average budget allocation: 

Overall average budget allocation

Findings from the data: 

Findings from the data On an average, out of the total budget 87% is being consumed by the ATL sector and only 13% goes towards BTL If we talk about the figures then approximately 42 crores are pumped in for the BTL activities overall Maggi spends close to 50 cr on its media activities as Maggi captures 80% of the market share