CHAPTER 1 - PROJECT OVERVIEW
1.1 Introduction
Nestea is a brand of iced tea manufactured by Nestle and distributed by Nestle Company’s beverage department in the United States and by Beverage Partners Worldwide (BPW), a joint venture between The Coca-Cola Company and Nestle, in the rest of the world. It competes with Unilever/PepsiCo's Lipton Iced Tea.
However, there is just Nestea Ice Tea Lemon Flavor available in Malaysia. It is a powdered concentrate of premium tea with lemon flavor that dissolves easily in cold water. It is refrigeratable and ready-to-drink bottles dispensed by vendor or vending machine. It is a healthier option as it contains all the refreshing goodness of tea, with a nutritional boost of vitamin C and 31% less sugar than other ice tea lemon tea brands.
Nestea's biggest markets are the United States, Canada, Australia, Taiwan, Italy, Spain, Switzerland, Germany and Vietnam. In Sri Lanka Nestea is a very different product, producing a hot, sweet milky tea on mixing with hot water. The product is manufactured and distributed by Nestlé Lanka (Pvt) Ltd.
Israel, Canada, Mexico and United States are the only countries that market diet Nestea flavors. Another instant hot tea product called Nestea (without sugar and milk) was marketed by Nestlé in the UK for a few years in the 1970s. However, it was not a success and was subsequently withdrawn.
1.2 Problem Statement and Issues
Nestea is not really well known yet as it just launched two years ago in Malaysia. It has tough competition from other existing brands such as Lipton which affect its sales. Peoples prefer ready products rather than instant powder which need to prepare themselves. Some of them even mixed up Nestea with other brands especially Justea. Besides, another issue has shown which is hard to find the Nestea products in the mini market or grocery store. Peoples have to go to the bigger supermarket to purchase their product. Even though, the products of Nestea has placed at a store rack that are not eye-catching enough which make people unknowingly ignore the products. In addition, the packaging design of Nestea is quite similar to design of Seasons Iced Tea. The similar characteristics between these two products are their colors which are orange and blue that makes people confused between both of them. Most importantly, they did not get a best way to advertise their product. Moreover, there is no information about Nestea products at their official website. Peoples cannot get to know Nestea even from their website. This is one of the reasons which made Nestea not really well known in public.
1.3 Objectives and Aims
The objectives of the analysis are:
· To do a situational study on the market of tea beverages in Malaysia to determine the consumer opinions toward tea beverages.
· To learn and understand the consumer behaviors, demographics and psychographics in details.
· To help stand out the brand identity of Nestea in the view of brand image and design.
· To make Nestea stands in the same market place as its tight competitors such as Lipton.
The aims to be achieved are:
· To study about the industry, the company, the brand, and their products.
· To analyze the competition in comparison to Nestea.
· To organize more outdoor events such as mini game contest, give away free gift in co-operate with other sponsors as to promote Nestea.
CHAPTER 2 - PROJECT PROFILE
2.1 Product Name
NESTEA Ice Tea Lemon Flavor
2.2 Product Classification
Nestea is a product which falls under the category of beverages. It is one of the products from Nestle Company.
2.3 Product Characteristics
Nestea is a powdered concentrate of premium tea with lemon flavor which sell in various types of packaging. Normally they sell it in a packaging of 5 big sachets with aluminum packaging material which is 65g per sachets that used to drink by whole bunch of peoples. Besides, they are selling in a package of 12 sachets per bag which is 13g per sachet. Sometimes, they will sell it together with a big bottle as a promotional item or as a free gift. The price of Nestea’s product is in the range of RM10-RM11.
2.4 Product Range
Products
|
Characteristics
|
 |
NESTEA ICE TEA LEMON
5 sachets x 65g
RM 10.29
|
|
NESTEA ICE TEA LEMON
20 sachets x 13g
RM 10.69
|
 |
Promotional Item / Free Gift
|
2.5 Distribution
The channel for Nestea products is indirect distribution system. They have a large group of unit trust consultant under their brand company which is Nestle.
Nestea is categorized under selective distribution as their products are mostly can be find at the supermarket in every states of Malaysia.
2.6 Product Life Cycle
Sales / Situation
2.7 The Brand
Nestea is a brand of iced tea manufactured by Nestle and distributed by Nestle Company’s beverage department in the United States and by Beverage Partners Worldwide (BPW), a joint venture between The Coca-Cola Company and Nestle, in the rest of the world. It competes with Unilever/PepsiCo's Lipton Iced Tea.
However, there is just Nestea Ice Tea Lemon Flavor available in Malaysia. It is a powdered concentrate of premium tea with lemon flavor that dissolves easily in cold water. It is refrigeratable and ready-to-drink bottles dispensed by vendor or vending machine. It is a healthier option as it contains all the refreshing goodness of tea, with a nutritional boost of vitamin C and 31% less sugar than other ice tea lemon tea brands.
2.8 Brand Image and Implication
The product comes with a bottle which makes it convenience to the consumers to prepare. It is a powdered concentrate of premium tea with lemon flavor that dissolves easily in cold water. It is a healthier option as it contains all the refreshing goodness of tea, with a nutritional boost of vitamin C and 31% less sugar than other ice tea lemon tea brands.
2.9 Strength and Weakness
The strengths of Nestea:
· Come with big sachets per box.
· A powdered concentrate of premium tea with lemon flavor that dissolves easily in cold water.
· 31% less sugar than other ice tea lemon tea brands.
· A nutritional boost of vitamin C.
· Reasonable Price.
· Well known at overseas.
The weaknesses of Nestea:
· Ready-made packaging .
· Did not highlight the benefits of Nestea to inform the consumers.
· Limited stocks at the supermarkets in Malaysia.
· Lack of product awareness and promotion.
· Lack of reputation and presence at official website.
· Weak performance in Asia.
· Low market share.
· Variety of Competitors.
2.10 Advantages and Disadvantages
The advantages of Nestea:
· Save time, no need use boiled water to melt the powder.
· Consumers can prepare themselves at home, no need to buy the ready bottle outside.
· It is refrigeratable and ready-to-drink bottles dispensed by vendor or vending machine.
· It is a healthier option as it contains all the refreshing goodness of tea.
· Convenience to prepare for whole bunch of peoples.
· Strategic location of the product which surrounded by potential customers.
· It is under a trustable brand company throughout the world with quality guarantee.
The disadvantages of Nestea:
· There are no bottle packaging in the market.
· Inconvenience to bring around.
· Consumers cannot find the product easily.
· Consumers prefer other trusted brands.
· Consumers cannot search for the information when go through the website.
· Consumers do not have the opportunity to get know Nestea.
2.11 Unique Selling Proposition (USP)
It is a healthier option as it contains all the refreshing goodness of tea, with a nutritional boost of vitamin C and 31% less sugar than other ice tea lemon tea brands.
2.12 Promotional History and Advertising Schedule
2.13 Positioning Statement
Nestea is one of the products which under Nestle. They have targeted family which includes parent and children in year 2011 when it was new launched. In year 2012, they have targeted youngsters which are in the age range from 18-25 years old.
CHAPTER 3 - THE COMPANY
3.1 Company Overview
Nestlé’s foundation was built in 1867 on humanitarian needs and social responsibility when Henri Nestlé, a trained pharmacist, developed a healthy and economical alternative source of infant nutrition to save the life of an infant who could not be breastfed. Today, more than 140 years later, Nestlé continues with its founder’s legacy to improve lives.
Nestlé's commitment to providing quality products to Malaysians dates back almost 100 years ago. Nestlé began in Malaysia in 1912 as the Anglo-Swiss Condensed Milk Company in Penang and later, growth and expansion made a move to Kuala Lumpur necessary in 1939. Since 1962, with its first factory in Petaling Jaya, Nestlé Malaysia now manufactures its products in 7 factories and operates from its head office in Mutiara Damansara.
The Company was publicly listed on the KLSE now known as Bursa Malaysia Berhad on 13 December, 1989. Today, the Company employs more than 5000 people and manufactures as well as markets more than 300 Halal products in Malaysia. Its brand name such has MILO, NESCAFÉ, MAGGI, NESPRAY and KIT KAT have become trusted household names and enjoyed for generations.
3.2 Business Description
At Nestlé, they define sustainable development as the process of improving the world’s access to better quality food, while contributing to long-term social and economic development, and preserving the environment for future generations. As the world’s leading food company and with over 90 years of doing business in Malaysia, Nestlé has contributed towards the well-being of Malaysians not only through its high quality products, but has also played a role in social development and environment conservation.
In line with the Nestlé position as “a trusted food, nutrition and wellness company”, we are focused on nourishing Malaysians to achieve overall wellness and deliver our promise to bring “Good Food, Good Life” to all members of society. The core of our business is based on the Nestlé Corporate Business Principles, which set out clear guidelines to every Nestlé employee on how to conduct business in an ethical and transparent manner.
Just as their founder Henri Nestlé dedicated his life to the community by reducing the infant mortality rate through the development of his life-saving nourishing formula nearly 140 years ago, we will continue to earn the trust and serve the needs of our consumers, employees, shareholders and society as a whole.
As the interest in corporate social responsibility grows, the public is interested to know about the companies behind the products they buy. This publication will provide an insight into how they practice and implement the corporate business principles based on integrity, sound values and a long-term approach to contribute towards sustainable development where we have direct influence on the economy, community and the environment.
3.3 Company History
Year
|
Description
|
1866
|
Our history begins back in 1866, when the first European condensed milk factory was opened in Cham, Switzerland, by the Anglo-Swiss Condensed Milk Company.
|
1867
|
In Vevey, Switzerland, our founder Henri Nestlé, a German pharmacist, launched his Farine lactée, a combination of cow’s milk, wheat flour and sugar, saving the life of a neighbor’s child. Nutrition has been the cornerstone of our company ever since. “Henri Nestlé, himself an immigrant from Germany, was instrumental in turning his Company towards international expansion from the very start. We owe more than our name, our logo and our first infant-food product to our founder. Henri Nestlé embodied many of the key attitudes and values that form part and parcel of our corporate culture: pragmatism, flexibility, the willingness to learn, an open mind and respect for other people and cultures.” Peter Brabeck-Letmathe, Nestlé Chairman
|
1905
|
The Anglo-Swiss Condensed Milk Company, founded by Americans Charles and George Page, merged with Nestlé after a couple of decades as fierce competitors to form the Nestlé and Anglo-Swiss Milk Company.
|
1914
|
The onset of World War I brought severe disruption to us along with the rest of the world. Acquiring raw materials and distributing products became increasingly difficult. Shortages of fresh milk throughout Europe forced factories to sell almost all their supplies to meet the needs of local towns.
|
1918
|
Nevertheless, the war created new demand for dairy products, largely in the form of government contracts. To keep up, Nestlé purchased several existing factories in the United States and, by war's end, we had 40 factories worldwide.
|
1925
|
The 1920s were a time of deep economic hardship, and Nestlé suffered severe difficulties along with much of the world. Operations were partially streamlined, but the company was able to continue, and with the acquisition of Peter, Cailler, Kohler Swiss Chocolate Company, chocolate became an integral part of our business. This sparked further variety in the products we offered – including malted milk and a powdered drink called Milo.
|
1938
|
Nescafé coffee was launched.
|
1940
|
Nescafé became an instant success and was followed in the early 1940s by Nestea.
|
1939
|
During World War II, Members of the Board and General Management were transferred to the U.S. where they coordinated Nestlé activities in the Western Hemisphere, the British Empire and overseas.
|
1943
|
Ironically, having slowed the initial launch of Nescafé, the war then helped to popularize it; with the United States entering the war, Nescafé coffee became a staple beverage of American servicemen serving in Europe and Asia.
|
1945
|
The close of World War II marked the beginning of a particularly dynamic phase of our history. Dozens of new products were added as our growth accelerated and we acquired outside companies.
|
1947
|
The Maggi products, from seasoning to soups, become part of the Nestlé family following the merger with Alimentana S.A.
|
1948
|
Nesquik, the instant chocolate drink, was developed in the United States. Its original name of Quik was a direct allusion to the speed and simplicity of its preparation.
|
1974
|
For the first time we diversified outside the food industry when we became a major shareholder in L'Oréal, one of the world's leading makers of cosmetics.
|
1977
|
Rising oil prices and slow growth in industrialized countries meant that we needed to respond to a radically changed marketplace. In 1977, we made our second venture outside the food industry by acquiring Alcon Laboratories Inc., a U.S. manufacturer of pharmaceutical and ophthalmic products.
A boycott against Nestlé was initiated by the U.S.-based organization Infant Formula Action Coalition over concerns about our promotion of infant formula in developing countries. This led to a consultation process with the World Health Organization, UNICEF and non-governmental organizations. The U.S. boycott ended in 1984 with the signing of a Statement of Understanding between Nestlé and the International Nestlé Boycott Committee.
|
1981
|
In 1981 the World Health Assembly adopted the International Code for the Marketing of Breast-milk Substitutes (“WHO Code”) and recommended that its Member States implement it. Nestlé was the first company to develop policies based on the WHO Code and apply them across our entire operations in developing countries.
|
1984
|
An improved bottom line allowed us to make new acquisitions, including a public offer of USD 3 billion for the American food giant, Carnation. At the time, this was one of the largest acquisitions in the history of the food industry.
|
1986
|
The Nespresso story began in 1986 with a simple idea: enable anyone to create the perfect cup of espresso coffee, just like a skilled barista.
|
1988
|
The Italian brand Buitoni, in Sansepolcro, became part of our portfolio in 1988. Nestled in the hills of Tuscany, Casa Buitoni is the symbol of the brand’s ongoing commitment to quality, creativity, and tradition.
The UK-based organization, Baby Milk Action, launched a boycott against Nestlé. While there are still boycott activities in the UK today, the following organisations have officially ended their support for it: the General Synod of the Church of England in July 1994, the Royal College of Midwives in July 1997, the Methodist Ethical Investment Committee in November 2005 and the United Reformed Churches in November 2011.
|
1993
|
The first half of the 1990s were favourable for Nestlé with the opening up of Central and Eastern Europe, as well as China – good news for a company with such far-flung and diverse interests.
|
2001
|
We merged with the Ralston Purina Company, which had been founded in 1983, in 2001 to form a new pet food company, Nestlé Purina Pet Care Company.
|
2002
|
Two major acquisitions were made in North America in 2002: in July, the merger of our U.S. ice cream business with Dreyer’s; and in August, a USD 2.6 billion acquisition of Chef America Inc., a leading frozen food product business.
|
2003
|
Nestlé acquired Mövenpick Ice Cream, enhancing our position as a market leader in the super premium category.
|
2005
|
Our Chairman Peter Brabeck-Letmathe recognized that the eating habits of the world’s population were changing and we began our own transformation. We began to move away from being a processor of agricultural commodities towards becoming a producer of food with added benefits and ultimately a provider of a wide range of products and services in the areas of nutrition, health and wellness.
|
2006
|
We acquired Jenny Craig and Uncle Toby's. With the help of Harvard’s Michael Porter and Mark Kramer, we articulated for the first time the concept of Creating Shared Value. Creating Shared Value expresses our conviction that we can only be successful over the long term if we create value, not just for our shareholders, but also for society.
|
2007
|
We acquired Novartis Medical Nutrition, Gerber and Henniez.
|
2009
|
We held the first Creating Shared Value Forum in New York, with leading experts in the areas of nutrition, water and rural development coming together to discuss serious global challenges facing us in these three areas and the role of business in helping to solve them. The Creating Shared Value Forum has been held on an annual basis since then, with London in 2010 and Washington, D.C. in 2011.
We celebrated the opening of the Chocolate Centre of Excellence in Broc, Switzerland.
|
January 2010
|
We sold our remaining Alcon shares to Novartis and also acquired Kraft Foods’ frozen pizza business.
|
March 2010
|
We faced a challenge from Greenpeace who wanted to be reassured about our commitment to sustainable Palm Oil. It was the first time we saw social media being used in a substantial way to challenge us and ask questions. We didn’t get the handling of our response to the campaign itself quite right in social media, but on the issue at its heart – palm oil - we took steps to both strengthen our position and to explain it more clearly.
|
May 2010
|
This month Nestlé launched Special.T. We launched the Nestlé Cocoa Plan which will supply 38 million high quality, disease-resistant plantlets to farmers helping them rejuvenate their farms and increase productivity. The Nescafé Plan was also launched – investing CHF 500 million to address responsible farming, sourcing and consumption across our coffee supply chain.
We also awarded the first Nestlé Prize in Creating Shared Value to IDE Cambodia for its Farm Business Advisors programme and we announced our partnership with the Forest Trust to work to combat deforestation.
|
September 2010
|
We announced the creation of Nestlé Health Science and the Nestlé Institute of Health Sciences, innovative ventures aimed at the prevention and eventually treatment of chronic medical conditions with science-based personalized nutrition solutions.
|
January 2011
|
We voluntarily submitted our policies and procedures to the FTSE4Good Policy Committee for independent review.
|
March 2011
|
We became the first infant formula manufacturer to be included in the FTSE4Good Index. This is the London Stock Exchanges’ responsible investment index and the only index that evaluates companies on their responsible marketing of breast-milk substitutes, alongside human rights and supply chain criteria.
|
April 2011
|
China was at the forefront, as we announced a partnership in April with Chinese food company Yinlu, a manufacturer of ready-to-drink peanut milk and canned rice porridge.
|
July 2011
|
We announced a partnership with Hsu Fu Chi, a confectionery and snacks manufacturer.
|
November 2011
|
We became the first food company to partner with the Fair Labor Association. This partnership will help us investigate if children are working in cocoa farms that supply our factories and, where we find problems, to solve them.
|
2012
|
Opening of new Nespresso factory in Switzerland.
Work with the Fair Labor Association on our cocoa supply chain.
Nestlé tops list of global companies cutting carbon emissions.
|
3.4 Key People
Board of Directors
Directors of Nestlé [Malaysia] Berhad
| |
Tan Sri Dato' Seri Syed Zainol Anwar Ibni Syed Putra Jamalullail
Independent, Non-Executive Director
Chairman of the Board of Directors
Chairman of the Audit Committee
Chairman of the Nomination Committee
|
Tan Sri Datuk (Dr.) Rafiah Salim
Independent, Non-Executive Director
Member of the Audit Committee
Member of the Compensation Committee
|
Dato' Mohd. Rafik bin Shah Mohamad
Independent, Non-Executive Director
Member of the Audit Committee
Chairman of the Compensation Committee
|
Dato' Frits van Dijk
Non-Independent, Non-Executive Director
Member of the Nomination Committee
Member of the Compensation Committee
|
Tan Sri Datuk Yong Poh Kon
Independent, Non-Executive Director
Member of the Audit Committee
|
Alois Hofbauer
Managing Director
Alternate Director to Marc Seiler
|
Marc Seiler
Independent, Non-Executive Director
Alternate Director to Alois Hofbauer
|
Adnan Pawanteh
Alternate Director to Dato' Frits van Dijk
|
Executive Committee
| |
Alois Hofbauer
Managing Director
|
Marc Seiler
Executive Director, Finance & Control
|
Patrick Hartless
Executive Director, Supply Chain & NCE Market Champion, MYSG Region
|
Adnan Pawanteh
Executive Director, Technical & Production
|
Victor Seah
Executive Director, Sales
|
Zainun Nur Abd. Rauf
Executive Director, Group Corporate Affairs & Human Resources
|
Yap Yin Kee
Executive Director, Nestlé Professional
|
Ho Hau Chieh
Executive Director, Milks & Beverages
|
3.5 Location and Subsidiaries
Name of Subsidiary
|
Contact Details
|
Country of incorporation
|
Principal activities
|
Nestlé (Malaysia) Berhad
|
22-1, 22nd Floor, Menara Surian
No. 1, Jalan PJU 7/3
Mutiara Damansara
47810 Petaling Jaya
Selangor, Malaysia.
Phone or Fax:
Tel : +603-7965 6000
Fax : +603-7965 6767
Nestlé Consumer Services
Phone : 1-800-88-3433
|
Malaysia
|
Marketing and sales of ice-cream, powdered milk and drinks, liquid milk and juices, instant coffee and other beverages, chocolate confectionery products, instant noodles, culinary products, cereals, yogurt and related products.
|
Nestlé Manufacturing
(Malaysia) Sdn. Bhd.
|
25, Jalan Tandang,
46050 Petaling Jaya,
Selangor.
Tel: +603-7965 6104
Batu Tiga Factory,
Jalan Playar 15/1,
P.O, Box 7010,
40700 Shah Alam,
Selangor
Tel: +603-5522 5600
|
Malaysia
|
Manufacturing and sales of ice-cream, powdered milk and drinks, liquid milk and juices, instant coffee and other beverages, instant noodles, culinary products, cereals, yogurt and related products.
|
Nestlé Asean
(Malaysia) Sdn. Bhd.
|
22-1, 22nd Floor, Menara Surian
No. 1, Jalan PJU 7/3
Mutiara Damansara
47810 Petaling Jaya
Selangor, Malaysia.
Phone or Fax:
Tel : +603-7965 6000
Fax : +603-7965 6767
|
Malaysia
|
Manufacturing and sales of chocolate confectionery products.
|
Nestlé Foods
(Malaysia) Sdn. Bhd.
|
25, Jalan Tandang,
46050 Petaling Jaya,
Selangor.
Tel: +603-7787 7400
|
Malaysia
|
Inactive
|
3.6 Brands, Major Products and Services
The Company was publicly listed on the KLSE now known as Bursa Malaysia Berhad on 13 December, 1989. Today, the Company employs more than 5000 people and manufactures as well as markets more than 300 Halal products in Malaysia. Its brand name such has MILO®, NESCAFÉ®, MAGGI®, NESPRAY® and KIT KAT® have become trusted household names and enjoyed for generations.
- NESTEA - Enjoy the goodness of refreshing New NESTEA, with tea, lemon flavor and Vitamin C. Sure to be loved by your whole family!
- Junior Foods - Nestlé CERELAC is now even better with BL BIFIDUS, good bacteria that helps to maintain a good digestive system. This will ensure optimum absorption of important nutrients like Zinc, Iron, Vitamin A & C which are important to support babies’ natural defense.
- Milk - There is a lot of evidence that milk has been an essential food for mankind for six millennia. But because milk is highly perishable, the storage and shipping of dairy products have always been a challenge.
- Nestlé Breakfast Cereal - Nestlé Cereals are made with whole grain which starts your day right with a nutritious deal.
- NESTUM - NESTUM a brand that has been in Malaysia for more than 50 years is known to provide nutritious breakfast/snack to Malaysian - young and old alike.
- COFFEE-MATE - is the No. 1 powdered creamer brand in Malaysia. Manufactured with the assurance of Nestlé’s 100-year heritage of milk expertise.
- MILO - was introduced in Malaysia in 1950 and has won the affection of many Malaysians. Children love its unique, delicious choco-malty taste. MILO is action packed with the natural goodness of malt, skimmed milk and cocoa for that great chocolatey taste.
- NESCAFÉ - In 1930, Nestlé was approached by the Brazilian Coffee Institute to seek a way to preserve the huge coffee surpluses.
- MAGGI - The 1st product launched was MAGGI culinary sauce way back in 1969. Since then, the MAGGI family has grown to meet consumers’ demand and is segmented into noodles, flavor world and sauces.
- Chilled Dairy - Nestlé Chilled Dairy in Malaysia has been established since 1997 & we are currently producing the No.1 range of yogurt & yogurt drink in the market from our local manufacturing plant in Petaling Jaya.
- NESTLÉ Ice Cream - Since its debut in 1994, NESTLÉ Ice Cream has grown into one of the most popular ice cream brands. Malaysians just love its high quality and tantalizing variety which caters to local tastes.
- Health Science - Nestlé Health Science has developed NUTREN - a range of delicious products and meal replacements that provide support for medical conditions where the role of nutrition is vital.
- POWERBAR - Performance System is a unique 3 step system designed to help new athletes understand what sports nutrition products to use.
- NESTLÉ PROFESSIONAL - is a one-stop F&B provider that offers high-quality products, services and creative business solutions that cater specifically for out-of-home channels.
Nestlé Category & Brand
|
Product Name
|
Junior Foods
|
Cerelac Junior Food - 12+ Months
Cerelac Junior Food - 6 Months
Cerelac Junior Food - 8+ Months
|
Milk
|
EVERYDAY
LACTOGEN 3
MOM & ME
NAN GROW 3
NAN HA 3
NAN Kid 4
NESPRAY CERGAS
NESPRAY Full Cream
NESTLÉ Low Fat Milk
NESTLÉ OMEGA PLUS Adult Milk
|
Breakfast Cereals
|
NESTLÉ COOKIE CRISP
NESTLÉ CORN FLAKES
NESTLÉ FITNESSE
NESTLÉ HONEY STARS
NESTLÉ KOKO KRUNCH
NESTLÉ KOKO KRUNCH DUO
NESTLÉ MILO
NESTLÉ Multi Grain CHEERIOS
|
Hot Cereals
|
NESTUM 3in1
NESTUM Mixed Cereal
|
Creamers
|
Coffee-Mate
|
Beverages
|
MILO
MILO 3in1
MILO Can - Original, Mocha and Hi-Cal
MILO SEJUK
MILO UHT
NESTEA
|
Coffee
|
NESCAFÉ
NESCAFÉ DOLCE GUSTO
NESCAFÉ 3IN1
NESCAFÉ Canned Coffee Drinks
NESCAFÉ CLASSIC
NESCAFÉ DECAF
NESCAFÉ GOLD
NESCAFÉ MENU
NESCAFÉ Ready-to-Drink range
|
Culinary Products
|
MAGGI 2-Minute Noodles
MAGGI Culinary Sauces
MAGGI Flavour Solutions
MAGGI Magic Meals
MAGGI Mi Goreng
MAGGI Recipe Solution
MAGGI Soakable
|
Chilled Dairy
|
NESTLÉ BLISS
NESTLÉ FAT FREE YOGURT
NESTLÉ Greek Yogurt
NESTLÉ Natural Set Yogurt
NESTLÉ Smooth and Fruity Yogurt
|
Ice Cream
|
NESTLÉ DRUMSTICK
NESTLÉ Ice Cream
NESTLÉ LA CREMERIA
NESTLÉ MAT KOOL ICE CONFECTION
|
Confectionery & Chocolates
|
KIT KAT
MILO NUGGETS & CHOCO BAR
NESTLÉ CRUNCH
NESTLÉ MILKYBAR
|
Health Science
|
NUTREN Fibre
NUTREN Junior
NUTREN Optimum
NUTREN Untuk Diabetik
PEPTAMEN
PEPTAMEN Junior
|
Performance Nutrition
|
POWERBAR Beverage System
POWERBAR Gel
POWERBAR Performance Bar
POWERBAR ProteinPlus
POWERBAR Triple Threat
|
3.7 Corporate Vision
Their vision is to be the leading Food and Beverage Company in the Caribbean Region, providing their customers with high quality products and services with added value at competitive prices, simultaneously ensuring the long term viability and profitability of the organization.
Company Vision: “To be an inspiring growth partner that delivers creative, branded food and beverage solutions, enabling operators to innovate and delight their consumers.”
As part of the world’s largest food and Beverage Company with a commitment to Nutrition, Health and Wellness, Nestlé Professional is passionate about supplying consumers with branded solutions that are creative, customized and commercially viable. In their relentless drive for excellence, they aim to continue to:
· Share our expertise with you
With over 100 years’ knowledge and experience in food and beverage, we’re here to share our skills with you and advise you, using our deep, authentic market and industry knowledge, and our scientific and technological know-how. Our knowledge is from hands-on industry experience; it’s not just research based. So, whatever channel you’re in – full service or quick casual restaurants, college & university, lodging, education, healthcare, business and industry, leisure, convenience stores, vending, or even cash and carry - we can quickly understand your challenges and help you develop profitable solutions that best meet your needs and delight your customers.
· Create profitable solutions tailored to you
At Nestlé Professional, we use our global consumer insight to create and deliver profitable new business solutions that are right for your channel. We bring you brands that your customers trust and love. We also offer you the service and training you need to maximize customer satisfaction, efficiency and profitability.
· Deliver safe, superior quality – every time
In an increasingly global, competitive, regulated and demanding market, we deliver consistently excellent products that you and your customers can trust. With extensive research, development and qualitative analysis, we aim to create many more such innovative products, helping you to differentiate your foodservice establishment from the competition.
· Take the lead on nutrition
We’re at the forefront of the growing customer demand for health and wellness. Amongst other things, we’re improving the nutritional profile of our existing products without compromising on taste.
· Be socially and environmentally aware
We strive to bring the benefits of globalization without adverse social and environmental impact. We are dedicated to improving the quality of life by addressing issues important to our global community such as sustainability, health and wellness, and food safety. From product development to packaging, our aim is to demonstrate that we fully understand both operator and consumer preferences, desires, and needs.
3.8 Corporate Mission
Nestlé Mission demands that:
· They are seen as a friendly, caring and efficient organization whose primary focus is on providing consumers with safe and convenient high quality food products.
· They are conscious of their role, as a leading corporate citizen, one which requires us at all times to be in tune with and responsive to the social, environmental, economic and cultural aspirations of the Caribbean people, whilst ensuring our shareholders a reasonable return on their investment.
· They are seen as an ideal place of employment with good working conditions and benefits, with an internal environment in which their staff can achieve job satisfaction, self development and their reasonable aspirations.
· They are viewed as a perfect example of an enlightened, innovative, modern Caribbean corporation with progressive and dynamic leadership that is supported by highly professional, committed, loyal and dedicated employees.
· It is understood that in order for them to realize their vision they have to continue to strive to earn the recognition and satisfy the trust their customers and business partners place in us.
3.9 Company’s Current Promotional Strategy
3. 9.1 Current Promotion
3.10 Product Sales’ History
Performance at a Glance
· Turnover of RM4.6 billion is 7.3% higher, up by RM310 million from 2011
· Profit before tax up 14.1% to RM638 million with underlying margin improvement of 80bps
· Higher earnings per share, up by 18.3% to RM2.16
· Declared and proposed dividend increased by 16.7% to RM2.10 per share
· Operating cash flow increased fromRM582 million to RM829 million
As from 1 January 2012, certain allowances and discounts are disclosed as a deduction of sales in conformity with Nestlé S.A. Group policy and with the practice generally applied by consumer goods companies. For comparative purpose, 2011 is adjusted to reflect the new turnover definition.
Increase in Turnover
|
Net Profit
|
Operating Cash Flow
|
+7.3%
|
+18.3%
|
+42.4%
|
Focus on Nutrition, Health and Wellness continued to bring enhanced benefits for consumers and greater differentiation in the market place. Coupled with the marketing and promotional activities initiated in conjunction with Nestlé celebrating its 100 years in Malaysia, Domestic sales grew by 9.7%. After an exceptional strong performance in 2011, Export grew by 0.8% in 2012.
5 Years’ Statistics
2012
RM’000
|
2011
RM’000
|
2010
RM’000
|
2009
RM’000
|
2008
RM’000
| |
Turnover
|
4,556,423
|
4,700,994
|
4,026,319
|
3,744,233
|
3,877,068
|
Earnings / Cash Flow
| |||||
Profit before tax
|
637,668
|
558,809
|
465,744
|
440,261
|
441,353
|
% of turnover
|
14.0%
|
11.9%
|
11.6%
|
11.8%
|
11.4%
|
Profit after tax and minority interest
|
505,352
|
456,301
|
391,398
|
351,793
|
340,887
|
% of turnover
|
11.1%
|
9.7%
|
9.7%
|
9.4%
|
8.8%
|
Dividends paid & proposed (net)
|
492,450
|
422,100
|
386,925
|
351,750
|
448,341
|
Depreciation of fixed assets
|
101,601
|
101,894
|
101,112
|
87,952
|
74,124
|
Cash flow (net profit + depreciation + amortization)
|
606,953
|
558,195
|
492,510
|
439,745
|
416,302
|
% of turnover
|
13.3%
|
11.9%
|
12.2%
|
11.7%
|
10.7%
|
Capital expenditure
|
158,442
|
93,015
|
143,915
|
257,131
|
188,055
|
Employment of Assets
| |||||
Fixed assets (net)
|
945,812
|
889,741
|
897,505
|
860,253
|
633,526
|
Associated companies
|
3,217
|
3,210
|
3,189
|
3,467
|
3,242
|
Intangible assets
|
61,024
|
61,024
|
61,024
|
61,024
|
61,024
|
Deferred tax assets
|
32,412
|
9,482
|
10,441
|
7,379
|
3,980
|
Receivables, deposits & prepayments
|
22,001
|
23,802
|
22,653
|
22,923
|
23,814
|
Net current assets4
|
88,689
|
100,324
|
62,954
|
58,892
|
148,575
|
Total
|
975,777
|
1,087,583
|
1,057,766
|
1,013,938
|
629,944
|
Financed By
| |||||
Share capital
|
234,500
|
234,500
|
234,500
|
234,500
|
234,500
|
Reserves
|
516,706
|
406,360
|
378,836
|
332,679
|
81,255
|
Total shareholders’ funds
|
751,206
|
640,860
|
613,336
|
567,179
|
515,755
|
Deferred Taxation
|
74,858
|
66,696
|
75,595
|
70,309
|
56,801
|
Retirement Benefit Liabilities
|
54,546
|
42,316
|
42,537
|
48,411
|
54,698
|
Borrowings
|
95,167
|
337,711
|
326,298
|
328,039
|
2,690
|
Total
|
975,777
|
1,087,583
|
1,057,766
|
1,013, 938
|
629, 944
|
Per Share
| |||||
Market price3 (RM)
|
62.84
|
56.20
|
43.34
|
33.10
|
27.00
|
Earnings1 (sen)
|
215.50
|
194.58
|
166. 91
|
150.02
|
145.37
|
Price earnings ratio
|
29.16
|
28.88
|
25. 97
|
22.06
|
18.57
|
Dividend (net) (sen)
|
210.00
|
180.00
|
165.00
|
150.00
|
191.19
|
Dividend yield (%)
|
3.3
|
3.2
|
3.8
|
4.5
|
7.1
|
Dividend cover1 (no.)
|
1.0
|
1.1
|
1.0
|
1.0
|
0.8
|
Shareholders’ funds (RM)
|
3.20
|
2.73
|
2.62
|
2.42
|
2.20
|
Net tangible assets 2 (RM)
|
2. 94
|
2.47
|
2.36
|
2.16
|
1. 94
|
Personnel (no.)
|
6,159
|
5,731
|
5,284
|
5,442
|
5,293
|
Factories (no.)
|
7
|
7
|
7
|
7
|
7
|
3.11 Current Marketing Objective
Nestlé’s objectives are to be recognized as the world leader in Nutrition, Health and Wellness, trusted by all its stakeholders, and to be the reference for financial performance in its industry.
They believe that leadership is not just about size but it is also about behavior. Trust, too, is about behavior and they recognize that trust is earned only over a long period of time by consistently delivering on our promises. These objectives and behaviors are encapsulated in the simple phrase, “Good Food, Good Life”, a phrase that sums up our corporate ambition.
Nestlé is intended to create alignment for their people behind a cohesive set of strategic priorities that will accelerate the achievement of their objectives. These objectives demand from their people a blend of long-term inspiration needed to build for the future and short-term entrepreneurial actions, delivering the necessary level of performance.
Marketing objectives are compatible with the overall corporate objectives of nestle. Company’s objective is to be the world’s largest and best branded food manufacturer while insuring that nestle name is synonymous with the products of the highest quality.
Its chief objectives are:
• To achieve compatibility with international voluntary standards on environmental management systems.
• To build mutual trust with consumers, governmental authorities and business partners.
• To ensure continuous improvement of nestles environmental performance.
• Conservation of natural resources and minimization of waste.
• Total compliance with the laws.
• To establish the benchmark for good business practice.
• Employing new technologies and processing.
• By committing to resources, both human and financial.
• Measuring the cost and benefits to business of its activities.
3.12 Media Expenditure
Press Release
|
Promotional Activities and Media Usage (2013)
|
MAGGI celebrates Gawai Dayak and Pesta Kaamatan
|
Kuching, May 28, 2013
Celebrated with enthusiasm all over East Malaysia, MAGGI, Malaysia’s leading culinary expert, ushers in the Gawai Dayak and Pesta Kaamatan festivities with cooking carnivals and competitions ala Sarawak style, held throughout the month of May. MAGGI celebrated the grand finale of the cooking carnival as well as the beginning of both festivals in a ceremony at Boulevard Shopping Mall. Present to share in the joyous occasion were Yang Berhormat Datuk Richard Riot Jaem, Human Resource Minister of Malaysia, Yang Berbahagia Datuk Ik Pahon Joyik, President of the Dayak Bidayuh National Association (DBNA) and Mr Alois Hofbauer, Managing Director of Nestlé Malaysia.
|
Nestlé celebrates factory’s 20th anniversary in East Malaysia
|
Kuching, May 27, 2013
As the festivities begin in East Malaysia to celebrate the Gawai and Kaamatan festivals, Nestlé Malaysia kicked off the thanksgiving celebrations with an open house at Nestlé’s Sejingkat factory with its employees and media today.
A festive atmosphere surrounded the premises as this year also marks Nestlé Sejingkat factory’s 20th anniversary in East Malaysia. The event was attended by Nestlé Malaysia’s Managing Director, Mr Alois Hofbauer, who took the opportunity to thank employees for their contribution as well as the media for their support throughout the years.
As with the tradition of celebrating the Gawai and Kaamatan festival, employees and media were treated to cultural dance performances, activities and a variety of local delicacies. The media were also given a tour around the factory on the manufacturing process and stringent quality measures taken to produce Nestlé’s quality food products.
|
Malaysians energized on Malaysia Breakfast Day with MILO
|
Serdang, May 19, 2013
Serdang, 19 May 2013 – Malaysians witnessed an overwhelming response from MILO's breakfast gathering in the country today: Malaysia Breakfast Day is brought to us by MILO Malaysia.
Malaysia Breakfast Day was held in conjunction with the nationwide campaign, The MILO Breakfast Movement, with the mission to deepen the relevance of breakfast among Malaysians and to drive action through behavioural-change activities.
According to Alois Hofbauer, Managing Director of Nestlé (Malaysia) Berhad who was present at Malaysia Breakfast Day to support the cause: "Nestlé, as a company, has always been committed to focus on nourishing Malaysians and deliver our promise to bring 'Good Food, Good Life' to all members of society. MILO is truly a brand custodian representing the Nestlé's corporate mission; I am proud to be part of the brand's commitment in its long-term advocacy of breakfast adopting in Malaysia – and I am sure that this is the first of many breakfast days to come."
|
Nestlé Malaysia Wellness@Work Programme
|
Petaling Jaya, May 7, 2013
True to its promise of providing GOOD FOOD, FOOD LIFE, NESTLÉ Malaysia is committed to enhance quality of life, every day, everywhere by not only providing the tastiest and healthiest food and beverages, but also promoting active living among its employees.
Branded as Wellness@Work, a comprehensive multi-faceted employee wellness programme was launched at the G Floor, Surian Tower, NESTLÉ Head Office on 7 May 2013. This programme caters for all NESTLÉ Head Office employees with the objective to empower them to take charge of their own health.
Over 250 employees, dressed in red, yellow and orange-colored T-shirts with printed health pledges joined the launch. The event started off with a 3-minute flash mob dance by employees followed by the official launch by NESTLÉ Malaysia/Singapore Region Head, Mr. Alois Hofbauer, Head of Human Resource, Mr. Mohamad Abu Bakar and Communications Director, Mr. Khoo Kar Khoon.
|
NESCAFÉ still fresh and strong after 75 years
|
Kuala Lumpur, April 4, 2013
The well-loved and perfectly roasted NESCAFÉ turns 75 years old this year, marking a milestone in the history of coffee around the world.
To commemorate this, as well as to thank and excite consumers, NESCAFÉ will be running a two month-long campaign, which includes multi-channel marketing and communications, as well as in-store promotions and activations where consumers can take home special limited edition NESCAFÉ collectables.
“It is our way of saying thank you to our consumers and we want them to know that we are committed to providing them with the best tasting and quality coffee, always,” said Alois Hofbauer, Managing Director of Nestlé Malaysia at the event in Kuala Lumpur, announcing the 75 years anniversary of NESCAFÉ.
|
Chapter 4 - Consumers and Stakeholders
4.1 Current Consumers’ Characteristics
4.1.1 Demographics
a) Age : 18 – 25 years old
b) Gender : Male and Female
c) Education : Diploma, College, University level and above
d) Occupation : Students
e) Allowances : RM500
f) Income range : -
g) Race & ethnicity : All races and ethnicity
h) Geographical location : Urban
4.1.2 Psychographics
a) Perception:
· Nestea is under a trusted brand company in the market place which is Nestlé.
· Nestlé is a brand that has been their brand of choice since their early years because they have grown up consuming the products from Nestlé.
b) Learning:
· Family
· Television/Radio ads
· Internet
· Newspapers/Magazine
· promotional event
c) Motivation & needs:
· The products’ advantages towards the consumers’ needs and how they will get motivated by it.
d) Attitude & Personality:
· Person who seeks to an enjoyable life
· Person who is active and outgoing
e) Lifestyle
· family orientated
· active in socialism
4.2 Stakeholders’ Characteristics
4.2.1 Primary stakeholders
· Shareholders, who want a dividend from profits.
· Employees, who want job security and the necessary training and development to allow them to further their careers with Nestlé.
· Business partners, who want a long term and trusted relationships.
4.2.2 Secondary
· Consumers, who expect that Nestlé will always produce good quality product and even want products that better meet their needs which are available in the right places with the right price.
· Suppliers, who helps to implement this commitment. We want to ensure both responsible sourcing and supplier relationships that deliver a competitive advantage.
· Media, who helps to advertise or promote the events that happen in Nestlé.
Chapter 5 - Industry and Marketplace
5.1 The Industry
5.1.1 Definition of the Industry
The beverage industry refers to the industry that produces drinks. Beverage production can vary greatly depending on which beverage is being made. There is a website explained that, "bottling facilities differ in the types of bottling lines they operate and the types of products they can run". Other bits of required information include the knowledge of if said beverage is canned or bottled, hot-fill or cold-fill, and natural or conventional. Innovations in the beverage industry, catalyzed by requests for non-alcoholic beverages, include: beverage plants, beverage processing, and beverage packing.
A comprehensive, informative and being a rich resource for international and local manufacturers, buyers and purchaser are in the global market. It consisting food, beverages, ingredients & flavorings, pharmaceuticals, packaging materials, processing equipment, machineries and much more. All products have been classified into sections which facilitate for easy reference and hence extremely convenience in sourcing.
Beverage production can be a complicated process for who are new to the industry. Bottling facilities differ in the types of bottling lines operate and the types of products that can run: cans vs. bottles, hot-fill vs. cold-fill, natural vs. conventional, etc. It is critical to understand the requirements of beverage brand before begin the production process. Demand for non-alcoholic beverages has been the catalyst for innovations in drink production in recent years, including beverage plants, beverage processing and, beverage packing.
No two beverage plants are alike. The beverage process each beverage production facility specializes in can vary greatly as can the beverage packing equipment available. There are many types of beverage processing equipment, some of the capabilities you may need to consider given the requirements of brands include: Cold Fill, Hot Fill, Carbonation, Aseptic or tetra pack and Tunnel Pasteurization.
Products manufactured by the beverage industry include: bottled water, juice, sparkling and still drinks, syrups, nectars, ready-to-drink and regular teas and coffees, dairy drinks, energy drinks, sports drinks, fruit powders, and alcoholic drinks such as beer, wine, cider and spirits. As beverage manufacturers increase production speed and output, which also lowers costs, the industry continues to become increasingly streamlined and efficient, favoring its expansion.
5.1.2 Shape of the Industry
Nestea is ongoing its product through indirect distribution, which display its product in Cold Storage in Malaysia. Cold Storage is one of the largest supermarkets in Malaysia. Nestea has been found in a lot of countries around the world. Later on, Malaysia will be one of the country who leads Nestea in the particular industry.
5.1.3 Development of the Industry
Nestlé's commitment to providing quality products to Malaysians dates back almost 100 years ago. Nestlé began in Malaysia in 1912 as the Anglo-Swiss Condensed Milk Company in Penang and later, growth and expansion made a move to Kuala Lumpur necessary in 1939.
Since 1962, with its first factory in Petaling Jaya, Nestlé Malaysia now manufactures its products in 7 factories and operates from its head office in Mutiara Damansara.
The Company was publicly listed on the KLSE now known as Bursa Malaysia Berhad on 13 December, 1989. Today, the Company employs more than 5000 people and manufactures as well as markets more than 300 Halal products in Malaysia. Its brand name such has MILO®, NESCAFÉ®, MAGGI®, NESPRAY® and KIT KAT® have become trusted household names and enjoyed for generations.
5.2 The Marketplace
5.2.1 Current Condition of the Marketplace
On the domestic front, the consistent double-digit growth achieved quarter after quarter was testament to the flawless execution of the strategies and plans throughout the year. Clear focus on fewer but bigger and bolder innovations and renovations helped the Group to launch several exciting new products which are aimed to capture new market segments and to drive future growth. NESTEA Ice Lemon Tea Beverage System was key launches that weans well received by the market.
Complementing this was the introduction of new products, as well as the on-going product renovation and innovation activities. New products introduced during the year, such as NESTEA was well received by consumers. The strong growth in demand from the domestic as well as export markets resulted in overall production rising by approximately 10% in 2011 with the high utilization of capacity complemented by significant performance improvements throughout the manufacturing network.
5.2.2 Changes in Marketplace
Positive:
According to the Evaluation of SME Development in Malaysia, beverages always contributed the highest output among other marketplaces. With so many competitors out in the marketplace, it is no doubt that beverages industry would always be placed in the first position in the market as beverages act as one of the basic needs in people life. Iced Tea is is one of the popular beverages in Malaysia and is sold in most restaurants and grocery stores. The two most common types of tea are plain Chinese Iced Tea (teh ais) and Iced Lemon Tea (teh o' ais limau). Both of these drinks can be bought at most coffee shops and are both usually made by the outlet. The popular brands of Iced Lemon Tea are Lipton, Nestea, and F&N Seasons. Despite the name, coffee shops usually serve Ice Lemon Tea with a lime rather than a lemon. This is probably because locally grown lime is cheaper than imported lemons, and it provides a similar citrus flavor.
Negative:
Although with many competitors in the market did boost up the output of the industry. However, there is still not fair between larger corporation competitor and smaller business competitor. Logically, consumers may choose the product which come from big brands. Moreover, the prices between them has not much different has bring negative impact to the smaller corporation's brand indirectly.
Chapter 6 - Competitive Situation
6.1 Direct Competitors
6.1.1 Lipton
Lipton is a brand of tea and was also a supermarket chain in the United Kingdom before it was sold off to Argyll Foods, to allow the company to focus solely on tea. The company is named after its founder Thomas Lipton. Thomas Lipton began travelling the world for new items to stock in this store, one such item was tea, since sales had grown from £40 million pounds from late 1870s to £80 Million pounds by the mid-1880s. Lipton believed that the price was far too high so he started growing his own tea and selling them in packets by the pound, half pound, and quarter pound, with the advertising slogan: "Direct from the tea gardens to the teapot." Lipton teas were an immediate success in the United States. Thomas Lipton was knighted by Queen Victoria, who made him Sir Thomas Lipton in 1898 at the age of forty-eight. The Lipton tea business was acquired by consumer goods company Unilever in a number of separate transactions, starting with the purchase of the United States and Canadian Lipton business in 1938 and completed in 1972 when Unilever bought the remainder of the global Lipton business from Allied Suppliers.
Price: RM 8.69
6.1.2 BOH
More than 5000ft above sea level, on the main mountain range of Malaysia, is one of the most fertile agricultural spots in the country: Cameron Highlands. Nicknamed 'Malaysia's Green Bowl', the highlands possess all the right attributes of prime cropland - moderate temperatures, high altitude, abundant rainfall, long hours of sunshine and well-drained soil. In 1929, J.A. Russell established Boh Tea Garden, the country's first highland tea garden in Cameron Highlands. Today, BOH Plantations owns two more tea gardens in Cameron Highlands: Fairlie and Sungei Palas. Tea is very much like wine; the conditions in which the crop is grown have great influence on its final character. BOH's tea gardens, bringing together the ideal environmental conditions of Cameron Highlands and the precision of mechanized operations, yield a tea with superb characteristics – bright and brisk complemented by a delightful aroma. Today, BOH has the largest combined acreage of tea gardens in the country. The Company remains committed to the legacy left behind by J.A. Russell: to produce great-tasting distinctive teas for generations to come.
Price: RM 10.49
6.1.3 APACHE
Apache is under a company which called Amecrown Foods & Beverages Sdn Bhd. It is the distributor and marketing company of the Amecrown Group. The team of talented sales executives at Amecrown Foods & Beverages sets up a good sales service system to market and distribute Amecrown products nationwide. The company is also eagerly organising promotional events at various shopping malls to introduce Amecrown products, which are of high quality and reasonable prices, to the customers in all around Malaysia. The Apache Ice Cool Lemon Tea can soothes your throat and make you enjoy one cup after another. It come with the ingredients which include Instant tea, sucrose, Lemon Juice Powder, Vanilla Flavor and Mint Powder.
Price: RM 11.50
6.2 Indirect Competitors
6.2.1 F&N Seasons
'Chill' and 'relax' with fruit-infused tea from F&N SEASONS to beat the heat or escape from the daily grind. That's healthy living made easy with F&N Seasons. There is no better way to refresh your day the natural way with F&N SEASONS. Refresh your day the natural way with F&N SEASONS Tea! It is packed with fruity zest and it is brewed from natural tea extracts. Tea is rich in antioxidant. F&N SEASONS’ tea doesn’t contain any artificial coloring or added preservatives. It comes with different flavors such as Ice Lemon Tea, Ice Peach Tea, Ice Apple Tea, Ice Lemon Green Tea and Ice Jasmine Green Tea.
Price: RM 2.20
6.2.2 Heaven & Earth
Heaven & Earth was launched in Singapore in June 2000 and has expanded to address your evolving needs. Today, your hectic modern lifestyle creates a need for balance in the different dimensions – mind, spirit, body. True to its innovative spirit, Heaven and Earth offers a range of refreshing teas to help cleanse your bodies and clarify your mind. A refreshing combination of fruity flavors and real tea leaves to give you a fruity tea explosion in every sip. Ice Lemon Tea is a sweet cooling tea taste with a stimulating lemon flavor finish, an all-time favorite!
Price: RM 2.20
6.2.3 Pokka
Pokka has carved a strong niche in the ready-to-drink beverage market with a brand name that is synonymous with healthy tea and fruit drinks. The Group has also successfully expanded overseas with its beverages now sold to consumers in more than 50 countries across Asia, the Middle East and Europe. In Singapore, its flagship beverages are POKKA 'Green Tea' and 'Carrot Fruit Juice', which both rank as the No. 1 choices in their respective categories. Pokka Corporation (S) Private Limited, Malaysia Branch incorporated in April 1995 was established to grow the business further in Malaysia. With a major transition in 2007, Pokka aims to be the "choice of beverage brand" to lifestyle and health conscious consumers. Made from the wonderful combination of authentic, real-brewed black tea and delicious fruit juices to give refreshing and unique tastes. No preservatives nor coloring added into the products.
Price: RM 2.20
Chapter 7 - SWOT Analysis
7.1 Strength
· Come with big sachets per box.
· A powdered concentrate of premium tea with lemon flavor that dissolves easily in cold water.
· Right products, quality and reliability.
· Reasonable Price.
· Superior product performance vs. competitors.
· Better product life and durability.
· Strategic location of the product which surrounded by potential customers.
· Healthier option as it contains all the refreshing goodness of tea
· Contains nutritional boost of vitamin C
· 31% less sugar than other ice tea lemon tea brands.
· Convenience to prepare for whole bunch of peoples.
· Have extended to overseas.
7.2 Weakness
· Ready-made packaging .
· Did not highlight the benefits of Nestea to inform the consumers.
· Variety of Competitors.
· Lack of competitive strength.
· Weak performance in Asia.
· Low market share.
· Lack of reputation and presence at official website.
· No strategic of product placement in supermarket.
· Lack of investment.
· Need more sales people.
· Weak financial reporting
· Lack of excellent branding and advertising through celebrities
7.3 Opportunity
· Could develop promotional activities.
· Profit margins will be good.
· Can surprise competitors.
· Could seek better supplier deals.
· Hot weather in Malaysia.
· Change location for strategic consumers.
· Improve the supply chains.
· Competitions from other trusted brands such as Lipton and BOH.
· Finding and hiring qualified personnel in growing market.
· Advertise more by celebrity associations.
· More Brand recognition through online and offline medium.
· Organize more external events or promotions to promote Nestea during festivals such as Hari Raya, Chinese New Year, etc.
7.4 Threats
· Environmental effects would favor larger competitors.
· Market demand very seasonal.
· Possible negative publicity.
· Vulnerable to reactive attack by major competitors.
· Changes in consumer tastes.
· It may causes disease such as diabetes.
Chapter 8 - Strategic Target Audience
8.1 Proposed Primary Target Audience
Demographics
a) Age : 18 – 25 years old
b) Gender : Male and Female
c) Education : Diploma, College, University level and above
d) Occupation : Students
e) Allowances : RM 500
f) Income range : -
g) Race & ethnicity : All races and ethnicity
h) Geographical location : Urban
Psychographics
a) Perception : People who likes to take Iced Tea Lemon as one of their choice of beverages.
b) Learning : Friends, Radio ads, Internet, Outdoor promotional event.
c) Motivation & needs : Demand an affordable price with good taste.
d) Attitude & Personality : Person who dare to take challenge.
e) Lifestyle : family orientated, active in socialism
8.2 Proposed Secondary Target Audience
Demographics
a) Age : 23 – 38 years old
b) Gender : Male and Female
c) Education : Diploma, College, University level and above
d) Occupation : White Collar
e) Income Range : RM 2000 – RM3500
f) Race & ethnicity : All races and ethnicity
g) Geographical location : Urban
Psychographics
a) Perception : People who likes to take Iced Tea Lemon as one of their choice of beverages.
b) Learning : Friends, Family, Radio ads, Internet.
c) Motivation & needs : Demand healthier drinks
d) Attitude & Personality : Person who dare to take challenge and seek for convenience’s sake.
e) Lifestyle : family orientated, active in socialism
Chapter 9 - Research Development
9.1 Marketplace Research
One Utama Cold Storage
IOI Mall McDonalds Fast Food Restaurant
9.2 Market Observation
· The Nestea product placement at One Utama Cold Storage was not eye-catching enough to attract peoples to purchase it. Even I have to take some times to search for Nestea product which has located at the top of one of the racks which is selling Lemon Iced Tea.
· I have made an observation at the McDonald fast food restaurant at IOI Mall which they are selling Nestea as one of their beverage. There was just one of them who chose Nestea as their drink out of 30 customers who have approached the counter.
9.3 Online Survey
9.4 Interview
I have sent an email and Facebook's message to Nestlé Company by asking for the information of Nestea’s product. In addition, I have required having an interview with them if possible. They have promised to forward my message to the respective department. So far, I have not received their reply yet.
9.5 Others
· Downloaded the Nestlé Corporate Report 2012 from their official website and have filtered out which important information can be attached in this particular situation analysis.
· Reading some of the review of Nestea product from some bloggers and have find out their opinion about Nestea as well.
Chapter 10 - Precedent Studies
10.1 Advertising Strategy
10.1.1 Road show Event
10.1.2 TV Commercial
2011
2012
10.2 Precedent Studies
10.2.1 Lipton
This is the official website of Lipton brand. Their concept is mainly in yellow color. It is simple and attractive enough.
URL: http://www.liptontea.com/
This is the screenshots of Lipton 'Drink Positive' Malaysia TV Commercial in 2011 special for Chinese New Year.
URL: http://www.youtube.com/watch?v=gkJDTsWYka4
This is the TV Commercial's screenshots of F&N Seasons Green Tea in 2011. The concept of this TVC is based on virtual reality which targeted youngsters.
URL: http://www.youtube.com/watch?v=Hc7sVCsCBTg
This is the official website screenshot of F&N Seasons from Singapore. The concept of this website is simple and nice which simply deliver the message of happiness and full of fun.
URL: http://www.fnnseasons.com.sg/
Chapter 11 - References
Internal:
· Nestlé Malaysia Official Website
· Nestlé Global Site
· Nestlé Food & Beverages Facebook Page
· Nestea Facebook Page
· Nestea Official Website
· Nestea Official Twitter
· Nestlé Malaysia Facebook Page
· 2011 TV Commercial
http://www.youtube.com/watch?v=AdF4dmyg95c
· 2012 TV Commercial
http://www.youtube.com/watch?v=ZJB4RM_BF2g
· Online Survey Form
https://docs.google.com/forms/d/1VBh4qiDJl3SVck-2LkY8nM8s4mEX6S1bd1RChzNAIeg/viewform
External:
· Evaluation of SME development in Malaysia
www.geasiapacifico.org/documents/IBRP1.pdf
· Lipton Official Website
http://www.liptontea.com/
· F&N Beverages Marketing Sdn Bhd Official Website
http://www.fnbm.com.my/content.php?pagename=Our+Brand&id=26
· Pokka Official Website
http://www.pokka.com.my/
· Coca-Cola Singapore Official Website (Heaven & Earth)
http://www.coca-cola.com.sg/beverage_benefits/heaven_earth_western.asp
· BOH Official Website
http://boh.com.my/
· Amecrown Official Website (APACHE)
http://www.amecrown.com.my/fnb/index.php?option=com_content&view=article&id=33&Itemid=48
Chapter 12 - Appendices
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