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Mission Statement At Nestl, our research makes it possible for everyone to enjoy better food for a better life. 11. Good Food is the

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Mission Statement At Nestl, our research makes it possible for everyone to enjoy better food for a better life. 11. Good Food is the primary source of Good Health throughout life. We strive to bring consumers foods that are safe, of high quality and provide optimal nutrition to meet physiological needs. In addition to nutrition, health and wellness, Nestl products bring consumers the vital ingredients of taste and pleasure. 12. As consumers continue to make choices regarding foods and beverages they consume, Nestl helps provide selections for all individual taste and lifestyle preferences. 13. Research is a key part of our heritage at Nestl and an essential element our future. We know there is still much to discover about health, wellness and the role of food in our lives, and we continue to search for answers to bring consumers Good Food for Good Life. Source: By Kelly Hand Leopoldo Gomez, C Case Study Nestl Builds Relationships Early in Latin America 1. To Nestl, the world's largest food and beverage company, the key to tapping into the Latin American and Caribbean region (LAC) is creating relationships with people. 2. While the LAC market has unique challenges and differences, the widespread interests in relationship and loyalty marketing parallel the developments witnessed in other global markets. 3. Denise d'Abadia, CRM manager for Nestl in the Caribbean region, advocates that Nestl's goal throughout LAC and the world is to reach out to individual consumers, and, as many other consumer packaged goods firms do, the company uses a platform approach centering on mothers, children, health, wellness and diet. 4. With its Very Best Baby program, Nestl starts cultivating a relationship with expectant mothers well in advance of their need to buy baby formula. Talking to Mom 5. To draw customers, Nestl created a robust set of interactive tools customized to a mother's due date. Expectant mothers register online to access advice and information about pregnancy, including first-trimester advice and weight-tracking charts to help maintain health. Launched in the 1990s as primarily a direct-mail program, Very Best Baby today leverages the lower cost of e-communications by providing mothers with relevant, engaging emails every two weeks with advice and tools geared to their gestation stages. 6. Nestl also uses direct mail at strategic points to further deepen the bond with the customer. Later mailings closer to the baby's birth date include coupons for Good Start baby formula and instructions for receiving free leather diaper bag. 7. "The consumer gets knowledge," d'Abadia, says, and "the information they receive in a well-constructed relationship marketing program is rich, timely, relevant, and delivered in their language." It also facilitates feedback, so Nestl can tailor future exchanges to individual needs. 8. In retum, the brand gets information. The culture at Nestl strongly supports the notion that successful loyalty programs are the ones that know their customers best, and can act on that information to turn engaged consumers into brand advocates. 9. Not only do "surveys reveal that the consumer is connected to the brand and the platform," says d'Abadie, "but Nestl can confidently say that their relationship marketing efforts lead directly to an increase in sales." Here's one example: After six months, a recent test in Colombia using a retail partner's frequent-shopper database indicated that brand volume among established customers increased, with additional volume from brand switchers. 10. But d'Abadia, warns all CPG brand managers against expecting quick results. "This is a long-term proposition," she says, "and in our case we had to build the capability to do relationship marketing from scratch." These challenges led to a difficult sell initially, as we couldn't provide tangible results during the early years of investment." She recommends using a formal business case process and net present value metrics to show the true ROI during the lengthy payback period. Questions: 1. From the case above, identify and briefly explain how Nestle has achieved the 4 principles of CRM. Support with examples. 2. Identify the different tools Nestle has implemented to establish dialogues with their customers. 3. Briefly explain how the above tools have established a dialogue with the customers and how the company has strengthened the relationships with the customers. 4. Briefly explain how the culture in Nestle is able to support their successful implementation of CRM strategy.

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