432 PART 3 Deeping a Customer Ve Devon Send Me Company Case Nestl: Integrating Marketing Communication into Daily Operations With more than 2000 brands, from global icons to local cortes Indirect marating. Not even used physical mail cre and present in 190 countries. Neste is one of the world's largely For instance, sent out a male made to look like the out food and beverage companies. It operates in four sert card lot by postal workers when they are unable to deliver a strategic business units beverage, milk and milk products, preparo say that the package, the Ketchunky was 800 pored dishes and cooking aides and chocolate. To designa chunky for your box The recipients could change their proper marketing mix for all four product groups. Neste employs card at the boat news agency for a free Kat Chunky country and market-specific marketing teams to design an MC strategy. regudes of the product group Direct and Digital Marketing Apart from bong the most used channel digital marketing now Have a Break from TV. Have a Kitkat. has the best audience reach Ness active in social media KitKat serves as a good representative of this promotional marketing and connects and interacts with more than 11 m strategies. Its take a brook message nos high overcog Son Facebook ans, 250.000 followers on Twitter, and more than nition in more than 80 countries globally. The office web 180.000 followers on Instagram. The company make sure that follows that philosophy faithfully: taly just as the visitor s products are positioned for the wider but also the most ap to take a break and have a Kakat. The brand's promotion is proprie audience using brideas for creative advertising concentrated mainly in TV commercial and posters, where the A campaign launched in India in 2015 provided a fresh take on powerful colors of the pack and the product or more is signature tag line. This campaign was about celebrating the keting message brors and recognized that people like many different types Advertising plays an important role in the confectionery of Animated videos and ad photos of people shooringa dustry, which Nestle is a part of so it is not surprising that the terms, string to music, and partying all night were posted company heavy invests in tin 2016, for example, sport C10 with a break on instagram, which was the million on advertising for KitKat. The band has a history of very platform to tell history vily and engage flowers. The com SUCCcampaigns, one in 2012 in which customers who pain was a success with a 42 point in nadrocal and point discovered one of the sk GPS nabied chocolate bars werden message association Ivered a pre of C10.000 by helicopter. The campaign dow Ne constantly responds to rapid technological changes in huge number of voitors to its website and Facebook and Twitter the marketing environment. In 2011, the company launched the pages, alcoger to how many bars were yet to be found Digtas Action Team DAT) to design a better mac of tradi Building on its success, an additional content was organized to son and digital tools and enhance to product marketing win 2.012, the year in which the campaign was launched by and e-commerce pred by hackathon culture, this involves entering the code on the inside of the Kikat wapper into a Intensive and intrepreneuraleight month training pro custom-made Facebook application Customers were only gram were diverse high potential leaders from across the globe lowed to enter after they had lived the page gather at Nest's HO in Swtzerland to exchange marketing Another creative ad was the Kits 2015 Christmas com periences. The DAT works on polfe digital marketing topico, cial, which showed a blank screen for 30 seconds-brook trom and the returns with the expertise needed to load the digi the holiday nice of the season More conventionally for the 2019 mation in their home units Beyond DAT. Neste has Winterson in the UK and Ireland, Kaunched on pack wondered to become more digitally connected by having promotion where customers who found a golden ticket in the animal social network where more than 200 employees can KitKat won a holiday brook to one of our locations engage with one another, and by enabling employees to blog The winning chocolate bar for the name of the destination and reinforce customers as daly practice written on it in white chocolate. Besides the ton holidays. The com pany offered other pros to be won every day, the beach towels Developing Effective Communications Ligonge tags, sun icons, and a branded port covers At the process of developing an effective MC strategy for Besides advertising, has used a wide range of MC promotions begins with identifying the target audience, such as tools for at holding on promotion act Personal current and potential customers and those who make the buying soling is costly, but toge companies the Neste can afford decision or those who influence it. For at the target audience One of the campaigns was a direct vendorsing actieveryone the mass consumer market. Next, the communi ty in the summer months of ney and Augustin Lahore Pakistan, danng which a beam of vendors clad in branded cation objectives, such as building wareness and knowledge. and providing information value for the customer are deter shirts. Chos, and Jackets sold chilled 0.5 ter bottles to come. As Kikat is ready a wolnown product globally, the muters on all major intersection. The brand got got meage company advertise not so much to boost as to remind the out of this innovative idea of personal seling in terms of brand customers about their vorte chocolate bar it then decides on wareness, paid trimage as well as reales the stable media, including personal and non-personal chan Kokat has become a particular obtion in Japon where ne or the marketing message should it choose personal ad- sales and profits are higher than any other market. The intro resor a wide exposure? Neste al possible channels duction of KitKat Green Tea (Up Match in 2004 has not only including print media newspapers, magazines, direct mail for its panded the over 350 Kot varieties that have been evallen cost tveness and non-trusiveness, which is a struggle in Japon over the years but also down more attention to the brand the digitale and increased sales volume. Atters massive Sus in Japan Kros broadcast radiotelevision and display bil In February 2018, the KitKat Matcha wito introduced in Europe boardins, posters media to reach a broader target CHAPTER 14 Engaging Consumers and Communicating Customer Value 433 audience. It uses print media mostly in form of posters that cel- printed individual codes on KitKat packaging that could either ebrate an event in a funny way, focusing on the "Take a Break" be entered on a dynamic website or texted on a mobile phone slogan. In one example, when a "no Wi-Fi zone" was introduced to win a prize-proof that traditional promotion can co-exist with in downtown Amsterdam in 2013, a street sign was installed digital tools. The particular blend of channels-of traditional and with the "Take a Break' slogan. Nestl also uses events: in 2013, digital media-is based on observation of customer behavior. Android launched its new operating system using the kitkat For instance, when marketing analytics indicate that a product name. Another aspect of effective communications is message appeals to a younger generation, digital is clearly the way for the source selection-one of KitKat's brand ambassadors is musi- company to go. However, this doesn't mean that Nestl should cian Chance the Rapper, who has appeared in various ads since abandon more traditional approaches: it continues to find ways 2016, to appeal to his young Millennial following to use traditional marketing to raise brand awareness with cre- Feedback is vital for measuring the effectiveness of commu- ative ideas that reinforce the marketing message nication tools, so Nestl analyzes big data from retailers and in- Through high-quality messages that increase ad recall, such ternal processes such as how many people bought a product as the "celebrate the breakers" campaign, Nestl maximizes re- talked to others about it, or visited a store. Insights from these turns on brand-building investments as it leverages social media analyses are then used by Nestl for suggesting changes in the to drive marketing and capitalize on digital channels. By devel IMC strategy or in the product offer itself. oping a highly engaging customer base and enhancing earned media benefits, the company keeps pace with an ever-changing Budget-Setting communication landscape. Digital and social media marketing Nestl sets its promotion budget based on what it wants to ac- strategies, social network Initiatives, and digital formats are im- complish, defining specific promotion objectives, determining plemented across global operations the tasks needed to achieve them, and estimating the costs of To continue building attractive and rewarding brand experi- performing these tasks. The sum of these costs is the proposed ences for customers, Nestl designs its IMC strategy collabor promotion budget, which is then divided among various IMC atively with other groups, such as sales and e-business, R&D, tools. For example, KitKat announced that it would double its technical applications, and agency partners. Through these well- media spend in 2015 with the launch of a $10 million multime- defined steps in IMC and budget-setting, Nestle has executed da campaign after losing sales in the sweet biscuits category multiple campaigns with great success and is all set to continue the year before. Seeking to reclaim the 11 percent of sales lost. that trend in the future. the campaign involved heavy promotion in-store as well as on social media. Budget-setting is also in line with pricing policy: Questions for Discussion the price is dependent on the market of each individual prod- 14-15 What steps did Nestl undertake to design KitKat's uct, so market leaders Nescafe and Maggi are priced with higher IMC and promotion program? margins for the company as compared to the competition. To deliver a clear, consistent, and compelling message about the 14-16 Should all companies have a digital acceleration team? products, Nestl ensures close cooperation with market- and What benefits did Nestl get from having one? marketing-specific local country teams to consider culture and 14-17 How is the bulget for IMC set at Nestle? What factors market differences might possibly influence it? Nestl has worked hard to make sure that its traditional mar- 14-18 What IMC tool has Nestl mainly used to promote keting approaches blend well with newer, tech-savvy ones, like printing of OR codes on candy bars and boosting social media KitKat and increase sales? engagement Sales promotion is also done through interactive 14-19. Explain the benefits of IMC efforts based on examples and responsive websites. For example, in the UK, the company given in this case, What steps did Nestl undertake to design KitKat's IMC and promotion program? Should all companies have a digital acceleration team? What benefits did Nestl get from having one? How is the budget for IMC set at Nestl? What factors might possibly influence it? What IMC tool has Nestl mainly used to promote KitKat and increase sales? . Explain the benefits of IMC efforts based on examples given in this case