Question 1 & 4

ACTIVITY 20.4 Nestl's size, which means that senior managers - Nestl drops smoothie drinks after four months Boosted Smoothies entered a market enjoying the biggest growth in the entire drinks sector, Nestl and researchers may be far removed from the spent $10 million on promoting its new product. Total sales of smoothie soft drinks grew by 31% last year - current market trends towards natural, organic products. so why was Nestl's new product not successful? The giant food multinational employs around 5,000 Nestle's really big world-sellers were all created a long scientists worldwide, developing and creating new time ago. For example, it sells a quarter of the world's food processes and products. The company's aim instant coffee - a mature market being overtaken by is to become world leader in nutrition and healthy the trend for freshly ground coffee - while powdered products. Boosted Smoothies became part of the baby milk, invented by company founder Henri Nestl company's strategy - the drinks were claimed to 'aid in 1866, is subject to increasing marketing restrictions concentration and memory' and 'strengthen the in some countries. Nestl is also strong in dairy and body's defences' - so why did they fail? Here are some confectionery products, but it fails to give these suggestions made by business analysts: products a natural healthy image in keeping with modern consumer trends. Wrong bottle sizes of 250 ml and 750 ml - competitors The company is not standing still, however. It are available in small trial-size bottles and in one-litre has set up small'innovation units', independent family bottles. of the rest of the organisation, which will try Global economic shocks, such as higher energy costs, to keep in close touch with the latest market trends. These will give scientists and researchers rising fruit prices and lower consumer incomes. space where they can free themselves from the Many competitors - such as global giant PepsiCo's constraints of a big organisation and start to think opicana, and small entrepreneurial brands, such as entrepreneurially about new products,' said one Green and Black's and Innocent smoothies. innovation expert. 40 marks, 1 hour] 1 Explain why, despite considerable research spending and promotional spending, the Boosted Smoothie product was not a success. [ [1 2 Recommend a suitable and detailed marketing strategy for this product in your own country. You should consider carefully Nestl's objectives and the wider environment within which it will operate in your country. 3 Would you advise Nestl, and other global food businesses, to continue to spend money on new product developments? Explain your answer. 4 Analyse why small teams of researchers are more likely to develop successful innovative products than when part of a much larger organisation