NhiNguyen

BrandAudit
MKT3320.001
ProductandBrandManagement
ProfessorHaworth
Fall2015

I.

BrandInventory
PartI:

A. Nestle
Location: Global headquarters is Nestle S.A., avenue Nestle 55, 1800 Vevy,
Switzerland.
Organization:

Nestle presents distinct characteristics of a global matrix structure. The

companys executive body is the Board of Directors. Leading the company is the
Chairman of the Board and Chief Executive Officer. Supporting the Board of
Directors in corporate governance are four committees: Chairmans and Corporate
Governance Committee, Compensation and Nomination Committee, Audit
Committee, Finance Committee. The Board currently has 14 members, 13 are
independent.
Nestle also has an Executive Board composed of company executives and
department heads. The Executive Board manages the companys operations and
implements strategy and policy created by the Board of Directors. Nestle uses
global geographic structure to divide the world into geographic markets, where they
can seek low cost manufacturing within diverse countries and meet different needs
across regions for marketing and sales. Each regional division is accountable for
reporting to the CEO.
Major activities:
Nestle products are divided into seven groups, and this brand audit will focus on
confectionery.

Powdered and Liquid Beverages

Water

Milk products and Ice Cream

Nutrition and Health Science

Prepared dishes and cooking aids

Confectionery

PetCare

Subsidiaries: Nestle has broad subsidiaries within the confectionery category.

There are two examples of the subsidiaries (Imagine A), and subsidiaries focusing
on WONKA (Image B).

(Above Image A)

(Above, Image B.)

History of Nestle:
In 1866, the first European condensed milk factory was opened in Switzerland
and it was owned by the Anglo Swiss Condensed Milk Company. In 1867, Henri
Nestle, a pharmacist developed Farine lactee which was food for babies who were
unable to breastfeed. Farine lactee was comprised of cows milk, wheat flour and
sugar.
Henri Nestles first customer was a neighbors premature infant who would
not tolerate the milk from his mother, or any usual substitute was not available for
the child. After saving this childs life, Nestle nutrition quickly became the
cornerstone of the company ever since. In 1905 the Anglo Swiss Condensed Milk
Company merged with Nestle.

1866: The Anglo-Swiss Condensed Milk Company is founded in Cham, Switzerland.

1867: Henri Nestl begins selling cow's milk-food in Vevey, Switzerland.
1900: Nestl opens a factory in the United States.
1905: Nestl and the Anglo-Swiss Condensed Milk Company merge.
1938: Nestl introduces Nescafe.
1974: Nestl enters the nonfood business, becoming a major shareholder of the
cosmetics company L'Oral.
1979: After numerous name changes, Nestl S.A. is adopted as the official
corporate title of the company.
1985: Nestl acquires Carnation and Hills Brothers Inc.
1992: Nestl acquires Perrier.
1998: Nestl acquires the Spillers pet food business belonging to Dalgety PLC,
making it the second largest pet food maker in Europe.
2002: Nestl acquires Ralston-Purina to become co-leader in the global pet food
business.
2003: Nestl acquires Dreyer's Grand Ice Cream.
2005: Chief executive officer Peter Brabeck-Letmathe is named chairman of the
board.
Financial Data:
Nestles earnings per share will likely grow 8-10% annually, and investors will
see attractive total returns going forward. Nestle also pays dividend yielding more
than three percent. For the last quarter, Nestle reported sales of CHF 209 billion
worldwide (Jonathon Weber, 2015).

Nestle 2014 annual report: (nestle website financial overview)

Key Personnel:

Recent news:

Coffee-Mate has launched a limited edition range of Star Wars-themed coffee

creamers, to mark the arrival of Star Wars: The Force Awakens in cinemas.
There are five Star Wars-themed packs for US fans to choose from, each of which
features a distinct character and contains a different-flavored creamer, on sale in
major retailers nationwide.
First launched in 1961, Coffee-Mate was the worlds first non-dairy creamer,
and it remains the US market leader, used in one out of every five creamed cups
ofcoffee. (Nestle Media, 2015).

B.CategoryandCompetition

Confectionery definition:
andies and the other confections considered as a group. This could include
chocolate, and gums.
Size of Category:
Nestl S.A. is the largest food and beverage company in the world. With a
manufacturing facility or office in nearly every country of the world, Nestl often is
referred to as "The most multinational of the multinationals." Nestl markets
approximately 7,500 brands organized into the following categories: baby foods,
breakfast cereals, chocolate and confectionery, beverages, bottled water, dairy

products, ice cream, prepared foods, foodservice, and pet care. For the purposes of
this brand audit, we will focus on confectionary.

3. Nestle SA
Vevey, Switzerland
Net Sales (Millions): $11,760
Chief Officer Title: Paul Bulcke,
CEO
Number of Employees:
*330,000

Number of Plants: *468

According to 2014 Global Top 100: Candy Industry's exclusive list of the Top
100 confectionery companies in the world, Nestle ranks third out of 100 companies.
By the end of 2013, there are approximately 465 factories in 150 countries, with
about 339,000 employees in the company. (Carla Scully, 2014).

History of category:
Many of the most popular candy bars sold today were developed between the
1890s and 1920 by various candy makers around the country. Rights to many of
these candies have been bought and sold many times since they were developed
and now are owned by large corporations such as Mars, Hershey Foods, WarnerLambert, and RJR Nabisco.
Milton S. Hershey manufactured the first chocolate bar in the United States in
1894. Hershey Kisses were introduced in 1907. The Bunte Brothers are credited with
manufacturing the first chocolate-covered candy bars in 1911. During World War I,
Hershey and other candy makers shipped large blocks of chocolate to army training
camps, where the blocks were cut into smaller chunks for distribution. This task
became too time-consuming for military personnel, and the manufacturers started
wrapping individual chocolate bars before shipping them. After the war, the candy
makers continued to sell candy commercially in this form, and this method of selling
candy became popular and convenient. (Jim Henry, 1996).

Many lines of candy bars were first sold for a dime, but sales did not catch on
since consumers could buy a pound of loose candy for that same dime. Immediately
after World War I, however, sugar and chocolate prices dropped and the price of
most candy bars was dropped to a nickel. The price remained fairly constant until
the late 1960s, when the price went back to a dime because of rising costs. Since
then, prices have steadily climbed.

Methods of distribution:

We travel the equivalent of 264 times around the world every day,
transporting more than 141 000 tons of products from around 1 630 warehouses to
our customers. Most of our distribution is conducted through partnerships with thirdparty logistics providers, and we rely on them to help us track our environmental
performance and improve the efficiency of our distribution network reducing
mileage and fuel consumption, minimizing GHG emissions, and cutting noise and
congestion. Weve also expanded our reporting to cover transport from distribution
center to customer, as well as factory to distribution center, so that it now covers
65% of the total volume of goods we distribute (2013: 60%) (Nestle, 2015).

Major players:

Unilever, Hershey Foods, Kraft Foods, Cadbury Schweppes, Groupe Danone,

Frito Lay North America, Mars Inc., and The Hershey Company
Seasonal factors:
Nestle UK is making its Christmas selection boxes entirely recyclable to
improve the green credentials of seasonal confectionery. The latest move in
packaging involves the removal of plastic inserts from its Christmas boxes, and have
been replaced by card presentation tray making the boxes easily recyclable.
Weight management: Last year, Nestle reduced the size of Chritmas selection boxes
by 40%, and now the company has shaved off a further 17-20% off medium and
large selection boxes. Nestle will save almost 200 tons of packaging this year
compared to 2009.
Both Easter and Christmas had a challenge to reduce packaging, while ensuring
the product arrives to the retailer in perfect condition, and that it looks great Andy
McQuade, seasonal manager, Nestle Confectionery (Guy Montague-Jones, 2009).

Regional factors:
Interest Rates affects the cost of capital, therefore to what extent a business grows
and expands. Exchange rates affect cost of exporting goods, supply and price of
imported goods in an economy. Hence forcing the company to increase the price of
its product when the price of cocoa increased recently.

The overall performance in the first quarter suffered from the timing of festivitiesmost notably Easter and to some extent the Chinese New Year, Wang Ling CFO at
Nestle. Ukraines instability has contributed to a slowdown in Eastern and central
Europe. The later Easter affected Nestle in Brazil, its largest confectionery market
globally, and the UK where the firm has strong chocolate business (Oliver Nieburg,
2014).
Legal considerations:
Nestle is recognized as the worlds leading nutrition, health and wellness
company. Nestle complies with all applicable legal requirements and the Nestle
Corporate Business Principles, and ensures that the principle of sustainable
development is embedded in activities, brands and products. Nestle is committed
to:
1) Fullcompliancewillallapplicablelegalenvironmentrequirements,andourinternalrequirementswhere
specificenvironmentallegislationisnonexistentorinsufficient.

2) Systematicassessmentandoptimizationofenvironmentalimpactsinthedesignofthenewandrenovated
products.

3) Responsiblesourcingofingredients,packagingmaterialsandothergoodsandservicesfromsupplierswho
complywithNestleSupplierCode.(NestlePolicyonEnvironmentalSustainability,2015).

C. Products within category for Nestle:

Share of category by product:
NESTLE N (NESN.VX)
-VTX
Watchlist
73.70

0.80(1.07%) 11:27AM EST

Products within WONKA:

Bottlecaps, Chewy Spree, Chewy Sweetarts, Everlasting Gobstopper, Fruit Runts,

Kazoozles, Laffy Taffy, Lik-M Aid Fun Dip, Mix-Ups, Nerds, Nerds Rope, Pixy Stix,
Spree, Sweetarts, Sweetarts Shockers, Sweetarts Gummy Bugs.

Product-form introduction:
Each of Nestl's European factories is a centre of excellence that specialises in
developing new areas of food technology. New paste bouillon research and
development is carried out at an Austrian factory. The new Maggi 'A Natural Choice'
paste bouillons are created and developed there. New product development
involves a number of important stages. To give an idea of timescale, the
development process for paste bouillons took 6 months.
At the same time front labels are designed, product photography
commissioned, recipe sheets produced and sales presenters are designed to ensure
a successful product launch. (Business Case studies, 2015).

Benefits and appeals of new packages-

As Nestle continues to fight for attention from its consumers, it helps to use relevant
incidents, or even celebrities to gain this acknowledgment. This allows Nestle to use
the platform that is established and loyal to whoever they decide to use, or which
event. For example, we will see Aero use a famous designer to repackage the Aero
candy wrapper. Allowing the brand to reinvent itself and giving a innovative and
relevant characteristic to the brand.

New packages-

 AEROhasunveiledacollaborationwithBritishfashiondesigner,MathewWilliamson, tocreatealimited
editionwrapperdesign.StockwillbeavailableSeptember28,2015forAEROmilkandAeroPeppermint.Mathew
Williamsonsaid,WhenIbegangatheringinspirationforthedesign,Iinstantlysawandsynergybetweenthe
uniquebubblytextureoftheAerochocolateandmypastworkwiththebutterflymotif.Thisautumnwillalsosee
thetotalAERObrandbenefitfrom2milliondollarmediacampaign,includingOutdoor,DigitalandVideoon
Demandadvertising(FoodBusinessReview,2015).

Innovations-

Wonka,makeroftheworldsmostimaginativesweetsisproudtoannounceitslatestinnovation:WONKAPeel
aPopfrozentreats.Thedessertpopslooklikeandpeellikebananas,butintrueWONKAform,thepeelsare
deliciouslyedible.AtWONKA,makingordinarysweetsisntenough.Ourmissionistobringthepureimagination
ofWillyWonkatolifewithinnovativetreats,LisaWilliams,WONKABrandManager.

WONKA Peel-a-Pop frozen treats are available nationwide at Wal-Mart, Target,

Safeway and Kroger at a suggested retail price of $4.29 per 8-pop carton. (Gina
Spatafore, 2015).

Recent news about product category competitors:

Mondelez International hits back at critics who argued the global food giant
avoided meeting its in UK tax liabilities last year, after it was revealed the business
paid no corporation tax in 2014. A spokeswoman said the business had done
nothing wrong. In common with all global business, we pay corporation tax based
on the laws of the countries in which we operate. We comply with all applicable tax

legislation in the UK, and on a global basis we pay hundreds of millions of dollars in
corporate income tax annually. (Mike Stones, 2015.)

Part II:
D.BrandAnalysisforNestle

Topbrandsbydollarorunitsales:

Kit Kat is ranked 9 out out 25 for Americas 25 favorite candies and is the only
top-selling chocolate bar in America that isn't American. The four-finger wafer bar

was introduced in Britain by Rowntree in 1935, prompted by a worker's note in a

company suggestion box. Hershey got licensing rights for the U.S. in 1969.
Elsewhere, Kit Kat is now made by Nestl.
Annual sales are $198.9 million, and is definitely one of Nestles best selling candies
in the confectionery category (Michael Arnt, 21015.)

Growthtrendsoftopbrands:

Category by share by country and region:

Salestrendsfrom2009to2014:

This was taken from Nestles 2012 Annual Report.

Category share by Region-

Categoryshare:

Pricing trends:
Nestle plants to increase pricing for confectionery products to restore growth to the
category. Cocoa butter prices in March 2014 neared highs in October 2013 and were
up 65% in the previous year (Oliver Nieburg, 2014) The graphs below depict
inflation, and rising cots.

Recent news about competitor brands:

HersheyCommitstoNourishOneMillionMindsby2020withNewGlobalSocialPurpose

Hershey Company announced the launch of Nourishing Minds, a new global

social purpose that will provide children in the United States with basic nutrition that
is critical for them to learn and grow. In the United States 15 million children
struggle with hunger. By using expertise in food and production, Hershey will feed
children in need today and give their communities necessary resources to ensure
food security in the future.
Since our founding, we focused on giving children the skills, education and support
they need to succeed. Children should not have to worry about where they will find
their next meal. Yet, one in five struggle with hunger in America, J.P. Bilbrey,
chairman, president and chief executive officer of The Hershey Company (Jensen
Coleman, 2015).

E. Consuer Profile for Nestle

Demographic of users:
Nestle aims to all consumers regardless of demographic differences.
Frequency of purchase/usage:
IBISWorld forecasts per capita sugar and sweetener consumption to slightly
increase over the next five years. Americans will continue to eat smaller amounts of
sweeteners due to health reasons, and the potential uptick in oil prices will continue
to drive increases in the price of corn (although this is also contingent upon harvest
yields). Still, modest population growth will keep per capita sugar and sweetener
consumption afloat. IBISWorld estimates per capita consumption to increase an
average of 1.0% annually to reach 138.3 pounds per person in 2020.

Place

of

purchase:

Kroger, CVS Pharmacy, Market Street, Walgreens, Albertsons, Wal Mart, Target, AMC
Theatre, Sweet Factory

Consumer Profile for Nestle

Target group
i. Youngchildren,around6to12yearsofage,whowatchNickelodean,playsvideogames
anddrinksMountainDew.WillyWonkachocolatereachesouttothesekidsthrough
commercialsonNickelodeanandonlineinteractiveOompaLoompavideogames

Target group
ii. theaverage45yearoldsuburbanmotherwhowasfirstintroducedtoWillyWonkafrom
thefirstmoviein1971withGeneWilder.Thismothernowwantstohaveherown
childrenconnectwiththebrandthatisnostalgictoher.Thisbringshertopurchase
Wonkaspecifically.

Heavy user profile:

Even Willy Wonka would be impressed with the size of the American candy
industry. The candy business is virtually immune to the ups and downs of the
business cycle. Candy is about as recession-proof as a business gets. Candy makers
know children are the most voracious consumers of candy in the country but to

grow further, they aim most of the new products toward older more affluent
consumers. Kurt Feurman, a confectionery analyst at Morgan Stanley.
Candy does well because people see it as an affordable indulgence, it is the
ultimate feel good food Ms. Steuer of Chocolate Marketing (Jennifer Steinhauer,
1991).

Young children, and young adults are more likely to be heavy users of confectionery.
As we age, our limit for sugar declines drastically as we exit the Sweet tooth

phase.

Awareness: Wonka has done a good job of creating awareness of the brand
through the movie, Charlie and the Chocolate Factory. Casting famous actors such

as Gene Wilder, or Johnny Depp reaches to a generation more mature than ones
that just have a craving for sweets.

Attitude: Slogan: Good Food, Good LifeFeed your imagination-Wonka

Normal Purchase Cycle:

Problem recognition: Craving for sugar, or chocolate.
Information Search:
Internal search- Relying on own knowledge to make a decision on what
confectionery item to indulge in.
external search- Asking friends or family members about to share knowledge and
opinions on confectionery items new to you. This is most not happen, because the
risk or making a wrong decision is low since it is not a high purchase item.
Alternative Evaluation: Factors like low fat, fat free, generic versions, and
accessibility will determine how you narrow down your choices.
Purchase Decision:
Consider accessibility and this will determine where you buy your product from. Is it
a vending machine while youre at school or work? Is it a grocery store while you are
running errands? Is it a airport while you are traveling?
Determining when you will buy the product is easy with confectionery items
because it is readily available without having to work around time sensitivity or
crowded places.
Post-Purchase Behavior: Generally because it is a low cost purchase, there are no
regrets. Especially since sweets allow consumers to indulge and treat themselves.

Brand loyalty/switching:
APCO, a global opinion research consultancy group came out with Most loved
companies. It took one decade of research and surveying over 70,000 consumers
from 15 markets across the globe to measure consumer brand relationship. Nestle
came in at #5, the only food maker to rank within the top 10. (Nestle Careers,
2015).

Nestle consumer boycotters admit they buy the brands products. Nearly half of
the customers who said they would boycott Nestle over a breast milk substitutes
later admitted they bought coffee from Nestle. A majority of consumers will confess
to having strong ethical attitudes, but in reality their actual behavior was shown to
be otherwise, Maxwell Winchester a marketing academic of Victoria University.
People will not just swap between fair trade brands but between fair trade and nonfair trade, showing there is no excess loyalty to fair trade brands Winchester
(Matthew Holehouse, 2011).
F. Advertising/MarketingCommunicationsforNestle:

Creativestrategiesfortopbrands:

Kit Kats are a very popular brand of Nestle, and there are over 200
different editions and flavors made in Japan. The list includes special editions,
seasonal items, and even ones that you can freeze or bake! Here are some of
the editions Kit Kat made within the last decade:
2005: Passion Fruit, Chocolatier Noir, Straberry with Grains, Mini Grape, White
Maple Syrup, Caramel Pudding Flavour,
2006: Fruits Parfait Flavour, Strawberry of Winter
2007: Kit Kat Melting Luxury, Cookie & Milk, Kiwi, Luxury Apple in Season,
Maccha Green Tea
2008: White, Soy Sauce, Oshiruko Flavour, Caramel Macchiato, Watermelon,
Blueberry cheesecake

2009: Ginger ale, Lemon Vinegar, Sour Orange, Custard Pudding, Royal Milk
Tea flavor
The most recent flavors to release in 2014 are Sweetness Orange peel,
Sweetness Strawberry, Pumpkin Pudding flavor, and Raspberry

New Yorks Times Square is an even sweeter destination with the opening of
the WONKA candy store at Toys R Us Times Square, the legendary candy
makers first retail shop and the place to find every candy in its delectable
portfolio. The artists at Creative Arts Unlimited brought Willy Wonkas
Chocolate Factory to life at Wonkas flagship store located in Times Square.
Working with brand experts from NESTLE, Wonkas parent company, and
representatives from Toys R Us decorated store windows overlooking
Broadway, customers will see sweet surprises at every turn, including:
A four-foot tall WONKA hat displaying some of the sweetest candies greets
guests as they enter the shop.

Swirled candy pieces seem to spring from a massive purple vortex, and
fantastically flavorful WONKA Exceptional Fruit Jellies surround a gigantic,
scrumptious infinity wall, filled to the brim with every type of WONKA candy.

Larger-than-life candy mushrooms, filled with mixed treats, decorate a replica

of the famous WONKA edible garden.

A 21-foot tree of make-believe PIXY STIX and KAZOOZLES towers over the
space complete with LAFFY TAFFY and FUN DIP flowers, while swirled sweets
sprout from the not-quite-edible grass.

SPREE and SWEETARTS seem to fly through the air, while purple and gold
twirling conveyors entice customers to grab a Scrumdiddlyumptious
Chocolate Bar, Waterfall Chocolate Bar or a Domed Dark Chocolate Bar.
(Patricia Bowles, 2010).

Nestle specific promises: Nestle Pure Life has a 12 step quality process to deliver
crisp, clean and pure tasting purified water. Its not just a process, its our promise.

Claims and appeals: Responsible advertising and marketing Nestle is committed

to ensure responsible marketing communication to children. Nestle has ensured
global compliance, abiding by external pledges including IFBA Commitments, and
local pledges. In 2014, 97.25 of Nestle television advertising to children under 12
was compliant with responsible marketing policies. (2013: 98.3%). Nestles
Marketing to Children Policy states that they do not direct marketing communication
to children under six. The objective is by 2015 to implement a strengthened Policy
on Marketing Communication to Children.

Competitive brands creative strategies:

Snickers is a leader in terms of the confectionery category, companies have

tried to immolate and create products to compete. However, with creative
campaigns that have proven to resonate to brand awareness and brand recognition
such as this ad above, it is difficult to beat.

G. Nestle Media

Category and brand spending: This bar graph below depicts how Nestle spent
their advertising dollars in 2013.

Regionality:

Spending patterns compared with marketshare:

Competitor spending: This bar graph below depicts worldwide competitor

spending for ads in 2014.

G. PromotionsforNestle

Google and Nestle announce android Kit Kat.

Google has ended months of online speculation about the name of the latest
version of its Android mobile operating system by revealing it will be called Android
KitKat, after Nestls popular chocolate and wafer confectionery.
The creators of the worlds most popular mobile platform have teamed up with the
worlds biggest food and beverage company to name the next release of the

platform Android KitKat.

Strong digital presence

Were excited to announce this partnership with Android, the world's most popular
mobile platform, which will help us to enable even more KitKat fans to enjoy their
break, said Patrice Bula, Nestls Head of Marketing.
KitKat is one of the worlds top ten fast-moving consumer goods brands in social
media in terms of fan numbers and engagement, he continued. We continue to
build on its strong digital presence with interactive, creative branding campaigns.
To mark the release of Android KitKat, more than 50 million specially branded KitKat
bars will be available in 19 countries including Australia, Brazil, Germany, India,
Japan, Dubai, Russia, the United Kingdom and the United States.

Competitor promotions:

Reese's had some very unhappy customers when their peanut butter Christmas
trees looked more like Christmas blobs. They totally owned the situation, because
let's be real, the trees taste amazing, so who really cares whaView image on Twitter
t they look like?
It turns out, Snickers really cares, unwrapping some serious sass in Reese's general
direction. Snickers took to their official Twitter page after the ~controversy~ to say
that their "trees are more satisfying anyway."

I)

Digital Strategies for Nestle.

Website: www.nestle.com

Purpose of site:
To educate users on Nutrition health and wellness, sustainability, social impact,
creating shared value, brands, and media.

Ecommerce activity:

The Wake Up Call

In 2010, Greenpeace launched a full on social media attack on Nestle regarding its methods for
acquiring palm oil. The company responded by pulling a video from YouTube, which only fired
Greenpeace up more to rally people to mobilize against Nestle.
In short, Nestle had a PR nightmare on its hands and had to make a big decision as to how to
rebuild its reputation. The first order of business was to announce a zero deforestation policy.
But the company also needed to do some deep thinking about the poor way in which it handled
the social media backlash.
The Plan
After what Blackshaw and Brodeur call a teachable moment, senior executives made a trip to
Silicon Valley to come up with a brand strategy informed by insights and creativity. They devised
an aggressive agenda, with the ultimate goal of becoming a fast-moving consumer goods leader
in leveraging digital and social media to build brands and digital audiences.
The Execution
To accomplish brand building the Nestle way, they embraced some fundamentals: focusing on
how to delight with product experience, knowing the consumer, winning with shoppers, and
creating engaging brand experiences. Two successful initiatives were created by forging
important partnerships. Nestle brand Purina acquired Petfinder, the largest online pet adoption
network. With seven million unique visitors per month, Nestle was able to tap into a large
audience of pet lovers. And through a partnership with Google, Android named one of its system
updates Kit Kat, creating awareness for a beloved Nestle brand. Unique partnerships is where
Nestle has made the most significant achievements in digital marketing.

K) In 2014 Nestle experienced 4.5% organic growth, trading operating profit margin
up 10 basis points, and increased 30 basis points in constant currencies. These are
strong results, they demonstrate intrinsic strengths of Nestle. I expect 2015 to be
similar to 2014 and to see improvements in margins, and underlying earnings per
share.Hereissomedatatobackupmytheories

TheGroupstradingoperatingprofitwasCHF14.0billion,representingamarginof15.3%,up10basis
points,andup30basispointsinconstantcurrencies.

Thecostofgoodssoldfellby30basispointsasapercentageofsales,drivenbyproductmixandpricing
actionsandsavingscreatedbyNestlContinuousExcellencewhichmorethanoffsetincreasesinraw
materialcosts.

Distributioncostswereupby10basispoints.

Totalmarketingandadministrationexpensesroseby10basispointsasweincreasedconsumerfacing
marketingsupportforourbrands.

NetprofitroseCHF4.4billiontoCHF14.5billion.Theincreasealsoreflectstheprofitrealisedonthe
disposalofpartofthestakeinLOralandtherevaluationgainonthe50%ofGaldermaalreadyheldwhen
theGroupbroughtitsownershipfrom50%to100%.ReportedearningspersharewereCHF4.54,up
44.6%.

Underlyingearningspershareinconstantcurrencieswereup4.4%.

TheGroupsoperatingcashflowremainedstrongatCHF14.7billion.

Part III:
II: Brand exploratory

I conducted a survey amongst 31 people to test the brand awareness, brand

recognition, depth and breadth of brand associations as well.
The purpose of the questions below was to see if consumers could recall lyrics from
the movie. To my surprise only 35% of them got it correct.

This question was made to show me what consumers wanted from the WONKA
brand for the future.

This question was meant to depict exactly how often these respondents consumed
WONKA products

Next to get a better idea of who my audience was I asked their age

This next question shows that only 58% of people knew that WONKA was owned by
Nestle

References

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tm
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