NESTLE CONFECTIONARY COMMUNICATION PROGRAM

2004

Prepared for Nestle Indonesia Dec 15, 2003

Agenda

• Background• Marketing Plan• Consumer Learning• Strategic Communication Tools

– Macs Triangle– Consumer Proposition– Rationale

• Communication Objective• Communication Strategy• Creative• Media Strategy• Below The Line Program

• When Nestle came into Indonesian market the perception towards the company was a reliable food specialist.

• From the research done last November it was found that practically nobody knew that Nestle has acquired several confectionery brands. Even the relationship with Rowntree was not understood by the consumer

Background

Market Overview• Chocolate market dominated by Silver Queen from

Ceres• Less than 12 manufacturer in Indonesia • Nestle have a niche market through Smarties & Kitkat

in Indonesia, however Nestle still have not been able to develop itself as a serious contender for chocolate leadership

• 2002 PT Ceres = 52 % of the market share Nestle 5.2%

• 2002 Silver Queen SOE 17 % Nestle :Kit kat 6% Smarties2% Éclair, Crunch

• 2003 Jan-Sep Nestle :Éclair ( TV ); Smarties; Kitkat

Background

Market Overview

Sugar• 2002 Mayora11.8% of the market share

Nestle 5.9• 2002 Starburst 6% fox 2%,polo • 2003 Jan-Sep Nestle :Nano-Nano 11 %; Fox 1

% polo

Background

Double the size of market share within the next 3 year Chocolate: 10.8% to 21.6% Sugar: 7.1% to 14.2%

Dominate the confectionery market Become the leadership within 7 years

Marketing Objective

Single communication proposition on NESTLEconfectionery brands Develop one message communication strategy

that will tie-up the three candy brand Develop one message communication strategy

that will tie-up all chocolate brands

Create high awareness on NESTLE confectioneryevolvement; Candy: ‘YOUR TOOTHFRIENDLY

CONFECTIONERY’ Chocolate: ‘PASSION FOR WHITE CHOCOLATE’

Agency Task

SugarPolo • candy (standard, big

one )• chewing gum Fox • Oriental( chrysanthem

um tea, ginger honey, green tea)

• Crystal Clear (fruits, mint )

• Sugar free ( fruits)

ChocolateChoco moo• Milo Nuggets• Kit kat• Eclairs• Smarties• Milky bar :milk & cookies

Agency Task

Consumer Research

PROFILING CONSUMERS

• Important Value

•Needs •Psychological

character

PERCEPTION ON NESTLE

•Awareness on Nestle

•Perceived comparison between Nestle and other players

•Perception on Nestle:• Spontaneous

association• Personality• Expertise• User imagery

ATTITUDE TOWARD

CATEGORY•Role of chocolate

& candy•Motivation &

Inhibitor•Attribute of good

& bad chocolate & candy

•Product categorization

Objective

To find communication direction toward Nestle Confectionary as umbrella for all Nestle sub brands

Methodology

Teens Mothers

Young Adult

Mini Focused Group Discussion on • 3 groups of loyal consumer • Mothers, Young Adults and Teens • Within Jakarta area

• Self purchase and decision maker themselves.• Minimal consumption of the product is 6 months.• Purchase and consume regularly every month.

• Minimal twice per month.

Consumer Profile

SAFETY NET

•When they are in need

ROOTS

•The symbol of my existence

NEEDS FULFILLMENT

•Fulfill my basic physical and emotional needs

CONVENTIONAL VALUE

Important Life Aspect of Nestle Loyalist

FAMILY(The role or meaning of family)

Moms Young Adult Teens• Using reference

from abroad.• Perceive themselves

as dynamic, always seek for variation, not monotonous

• Doing safe adventures (go to uncommon places)

• Impulsive (unplanned action)

• Perceive themselves as dynamic, always seek for variation, not monotonous

• Perceive themselves as fun teenagers.

Lifestyle of Nestle Loyalist

HIGH PROFILE PEOPLE…they perceive themselves as people who are dynamic, fun and

own high quality of life…

CONVENTIONAL VALUE HIGH PROFILE PEOPLE

ORDINARY CLASSY PEOPLE

KEY LEARNINGNestle loyalist are people who show a high profile lifestyle

but still hold a conventional value.

Summary

ORDINARY CLASSY PEOPLE

KEY LEARNINGNestle loyalist are people who

show a high profile lifestyle but still hold a

conventional value.

“PENGEN DIANGGAP”/ WANT TO

BE ACKNOWLEDGED

Summary

Consumer Perceptions

PersonalityExpertise

Perceived Users

• Fun

• Friendly• Sociable

ACTIVE• Charismatic

• Leader

EXPERT• Good Appearance

• High Profile

STYLISH

•Middle upper

•Affluent

•Apartment

•Private school

CLASSY

•Health•Nutrition

•Good taste

•Natural essence

•Variation

•New invention

BEST QUALITY

ADVANCENestle

Emotional Connection to Nestle

Moms Young Adult Teens

• At noon when a little bit hungry.

• Snacking in my car• When refreshment is

needed.• With my husband• Relaxing moment in

my home• When there is a lot of

time for myself, not in rush.

• When bad mood (Bete).

• While watching TV.• When reading a

magazine.• Relaxing moment• When gather with my

close friends.

• When bad mood (Bete).

• Afternoon time (when not too hungry but need to eat something).

• When gather with my close friends.

Chocolate Moment

Perception and Attitude toward Category

… chocolate is relaxing and fulfilling snack for personal moments …

Chocolate Moment

Good Chocolate

Moms Young Adult Teens• While cleaning up the

house• Outside the house (when

traveling or sightseeing)• Emergency (when water

is not available)• To be placed in living

room• After eating meal• When avoiding ‘eneq’

(nauseous)

• When studying• Outside the house (in

the car or sightseeing)• When avoiding ‘eneq’

(nauseous)

• When studying

Candy Moment

Perception and Attitude toward Category

…a shared snack that will turn ordinary social moments into

special social moments…

Candy Moment

Good Candy

To find communication direction toward Nestle Confectionary as umbrella for all Nestle sub brands

Objective

Propose Direction

PROFILING CONSUMERS

NESTLE EMOTIONAL CONNECTION

CATEGORY ROLE (CHOCO & CANDY)

POTENTIAL EMOTIONAL CONNECTION BETWEEN NESTLE AND CATEGORY

SUB BRANDS

Relating to core age of sub brand target market

Relating to current soul of sub brand

Frame of thinking

Ordinary Classy People

A ProgressiveSophisticated

Brand

Relaxing fulfilling snack for

deep special moment

Nestle Chocolate is a sophisticated chocolate that will enlighten all my deep personal moments, anytime and anywhere.

Proposed Potential Direction for

Nestle Chocolate Category

My companion in all special moments.

Choco Moo ÉclairsMilo NuggetKit KatMilky BarSmarties

Proposed Potential Direction for

Nestle Chocolate CategoryNestle Chocolate is a sophisticated chocolate

that will enlighten all my deep personal moments, anytime and anywhere

…a shared snack that will turn ordinary social moments into special social moments…

Proposed Potential Direction for

Nestle Candy Category

Ordinary Classy People

A ProgressiveSophisticated

Brand

Social snack that will turn

your ordinary moment into special moment

FoxPolo

Proposed Potential Direction for

Nestle Candy CategoryNestle Candy is a sophisticated candy that will turn your

social ordinary moment into social special moment

A friend in every “socializing”

moments.

Communication Strategy

What to do? • Design a single idea strategy to build strong brand

awareness and preference of Nestle confectionery• To test the strategy on creative implementation to a

selected chocolate & candy brand

Umbrella theme• Develop one message communication strategy that will tie-

up the candy brand• Develop one message communication strategy that will tie-

up the chocolate brand

Connect the umbrella theme to Nestle confectioneryevolvement• Candy: Your tooth-friendly confectionery• Chocolate: Passions for white chocolate

Communication Strategy

How to get there?Umbrella theme• Create a single minded proposition that able to tie-up

each brand to the confectionery umbrella

Connecting to the new evolvement of Nestle confectionery

• Develop an introductory device as the ‘bridge’ for the new changes

Communication Strategy

Strategic tool

Strategic tool

MACS TRIANGLE• MACS Triangle is our tool to define a

proposition that may give clearer consumer comprehension and appreciation towards the brand, based on the Brand Core Value as well as the consumer insights.

Point of DifferenceCompetitive Frame

Benefits

Prime Prospects

Brand Core Value

BRAND CORE VALUE

Consumers insight• Defining our consumer’s agenda, expectation and habits

Defining our Brand Core Value

Brand value• Searching and developing the core value of the brand

MACS TRIANGLE

Advertising Promise

An integrated campaign should be implemented. In this case, it should cover all aspects that can intercept the audience “24 hours” a day.

Advertising may not need to be year long but it should be supported by BTL activities that grab the core of the target segments.

We need to create a sales-generating activity to create trial and loyalty while demonstrating the goodness of Nestle’s “Good Life”.

Games and quiz amongst students may create a sales if the rewards are relevant (not necessarily expensive perhaps).

Communication Implementation

Nestle confectionery

TELEVISION

PRINT

P O S

RADIO

SPONSORSHIP

Above The Line

Below The LineEVENT &OFF AIR

PROGRAMS

OUTDOORS

INTERNET

Integrated Communication

Confectionery

Point of Difference: •unique image that delivers the value of each brand•Wholesome goodness that comes from the food expert

Competitive Frame High competitive arena With Only few have survived & able to claim them selves as a top confectionery brand (20 brand in candy & only Ceres in chocolate) .

Prime ProspectsMale/Female AB with high profile lifestyle who perceived snack as their mate who can add meanings to their social activity

BRAND CORE VALUEWholesome goodness that

accompany you at any momentBenefitsMakes them feel good inside at every moment (Nutrition for the soul, enrichment for the body)

Consumers insightWant to be acknowledged for their good taste (Pengen dianggap)

Defining our Advertising Proposition

Brand Core Value Wholesome goodness that accompany you at any moment

Advertising PromiseCompanion that adds goodness

to your quality moment

Confectionery

Chocolate

Point of Difference• unique image that delivers satisfaction for your passions for chocolate

Competitive Frame Small arena of competition but with the domination of 1 giant (Silver Queen)

BenefitsPersonal moment become more enjoyable and memorable

Prime ProspectsMale/Female AB with high profile lifestyle who perceived snack as their mate who can add meanings to their personal moment

Brand Core Value

BRAND CORE VALUECompanion for your passionate moment

Consumers insightWant to be acknowledge for their ‘sophisticated taste’ (Pengen dianggap)

Brand Core Valuecompanion for your passionate moment

Chocolate

Advertising Promise

Companion for your sophisticated passions

Candy

Point of Difference•Unique product with unique personality mouth refreshment.

Competitive FrameHigh cluttered competition with only few becomes market leaders

Benefitsmood refreshment to enhance any social moment

Prime ProspectsMale/Female AB with high profile lifestyle who perceived snack as their mate who can add meanings to their social moment

Brand Core Value

BRAND CORE VALUEcompanion that can

freshen-up the moment

Consumers insightWant to be acknowledge for their “role” amongst their peer group (Pengen dianggap)

Understanding our Brand Core Value

Brand Core Valuecompanion that can freshen-up the moment

Advertising PromiseCompanion to freshen-up your social moment

Candy

Single word that translate the proposition

Companion that adds goodness to

your quality moment

Confectionery

CandyChocolate

Companion for your

sophisticated passions

Companion to freshen-up your social moment

“SOUL MATE”

Message implementation

KEY consideration to deliver the message

Nestle’s Confectionary

Chocolate Sugar

Current personality should be kept and but another element should be added up

to strengthen the sense of belonging. “Soul mate” should be incorporated in all

communications

“Passion for White Chocolate” and “Tooth Friendly” should be communicated as an improvement to portray

a close relationship as a soul mate

Add an element in all communications that can create a consumer perception that Nestle’s brands are fit in all occasions

Only to be communicated as a tactical campaign that strengthens the brands’ image

Implement the brand proposition into actionable communication

toolsBrand proposition

Nestle’s Confex Brand Core Value

ATL BTL Media

Creative

Objective

To test that our “Soul mate” single proposition

can be implemented through out all Nestle brand’s communications.

For these purposes we selected two brands, first is Polo to represent candy categories. And second we select Eclairs as chocolate representative.

Objective

For Polo communications we add soul mate as a tone and manner to the existing communication. The soul mate scenario is between the consumer and the brand. That why we came up with the new headline that just an extension of the original concept but

more personal, “Nyari yang bolong”. With this statement we can play around with many execution that still can reflect the soul of the brand that “young rebellious Humor” but we connected that with soul mate situation.

POLO

Objective

For Eclair communication we are going more personal with the brand, with their soul mate they can expect “a pleasant surprise” happens along the way. Just like in life you always never know the nice thing you might find just around the corner.

Eclairs

Eclairs

MEDIA

Media Strategy

Above the line activity is recommended to use traditional medium such as television, print and radio

Confectionary and Chocolate consumers are considered as non loyal users, continuous advertising is needed to maintain awareness and to strengthen the brand from the competitor

To get closer to the consumers, creative media and tie up with media houses activity will be impact full and straight to the target audience

Budget split will be 75% on Television, 15% on print (mostly magazine) and 10% on Radio

Media Strategy

Creative Media

Beside the display ads, to sponsor the children creativity section such as die cut, games, ‘treasure hunt’ etc.

To have brand experience, tie up with children magazine on school visit (edutainment), meet & greet, watch movie etc.

To sponsor Holiday activity (such as out bound, camping, entertainment short course etc.). This activity will be tie up with magazine or radio to create noise.

SMS or E-mail games

ACTIVITY MEDIA PRODUCTCreativity Section Bobo Smarties

Junior Choco Moo

Fantasi

KIDs Fantasi

Die cut Bobo Smarties

Junior Choco Moo

Fantasi

KIDs Fantasi

Games Gadis Kik Kat

Kawanku Polo

Aneka Yess

RADIO

Seventeen Fox

Kosmo Girl Kit Kat

Éclair

Media Activity

ACTIVITY MEDIA PRODUCTValentine momentum Gadis Kik Kat

Kawanku Polo

Aneka Yess

Seventeen Fox

Kosmo Girl Kit Kat

Éclair

RADIO

School visit on Tooth Friendly Fantasi Smarties

Polo

Choco Moo

RADIO Support

Jumpa Bintang Fantasi Smarties

Polo

Choco Moo

RADIO Support

Nonton Bareng Bintang Indonesia All product depend on

Jumpa Bintang Fantasi Movie Selection

RADIO Support

Media Activity

Below The Line Activities

Objective

To add an association of Nestle

confectionery brands to the new proposition through various events

Tie up the improvement messages (I.e. “Tooth Friendly” and “Passion for White Chocolate”) to create a stronger awareness that Nestle confectionery products understand the consumers needs.

Chocolate Candy

Association

• Smarties- Smart Creation

• Choco Moo-Sampling + dental care

• Choco Moo-Sampling + scholarship

• Choco Moo-Sampling on special event

• Kitkat- Give me a break !

• Éclair – Dreamed Date !

• Kitkat, Éclair- Soul mate Party

• Polo - Election 2004 • Fox - Crystal clear

memories !

Awareness •Milky bar–White Lie , passion for white chocolate! –Sampling

•Polo- Soul mate party

Below The Line Activities

Smarties Together with a friend or member of the family,

make a creation with Smarties and send the photograph to children’s magazine ( Bobo ) with 1 pack of Smarties (empty)

The smartest creation will get great prizes

Choco Moo Road show to 5 schools in 3 big cities

( Jakarta, Bandung, Surabaya) and share tips on dental care + sampling. Tie up with with Fantasia tabloid . Benefit :national media coverage

Events

Events

Choco Moo Scholarship :Every purchase of 1 Choco Moo, consumer

will donate Rp 1,- for Nestle scholarship .The scholarship will be given every 4 months ( 3x a year)

The event and sampling will be held at Primary school at greater Jakarta

Sampling : at Kindergarten & Primary school on their special events such as (graduation,independence, etc ) sharing with their love ones ( family ,& friend )

Mixed brand :KitKat, Éclair & Polo • Road show with a trailer, getting closer to the customer • Sponsored by KitKat, Éclair & Polo • Activities :music,games, basket ball 3 on 3,best photo box

contest, mini golf contest, the most ‘hole’ contest• All games requires couples(could be lovers, member of

family,etc ) • Sampling on new product or introducing new variants

KitKat Every break hours 12.00-13.00 participant should tell

their experience during the day & how KitKat can give them a break !

Events

Éclair• Send an email on a perfect date with your dreamed

celebrities, and how would you want it to be, imagine it with Éclair and wait for the surprise !!!

• 3 most passionate story will be on aired at MTV Media Tie up with MTV on sky & MTV

Fox Tell a touching story about something that you crystal

clearly remembered with your loved ones on Valentine’s day

Events

Milky Bar• Advertorial/Article about white chocolate- introduce passion

for white chocolate • Sampling at university & high school

Radio program : White lie with white chocolate• Tell a white lie story that finally make your relationship

( between your lover, parents or friends ) even more closer

Events

Events

Polo Election for youth “cari yang bolong !!” campaign• Objective :Urge youth to participate on election 2004• Media tie up with MTV & MTV on sky • Mechanism : write your opinion on the most ideal

president/leader for the future • Medium : sms

THANK YOU