Subject: MarketingCourse: MKT201: POM

Nestl Jamaica Enters Powdered Milk Market Under Everyday Brand

Published: Thursday | September 24, 2020 | 6:18 PM Neville Graham - Business Reporter

Food marketing company Nestl Jamaica has entered the powdered milk market under the Nestl Everyday brand. The product will compete with two other brands of powdered milk on the market, Lasco LaSoy and Anchor.

Nestl had earlier this year re-entered the fresh whole milk market under a co-manufacturing deal with Seprod Limited. Its powdered milk is being produced under a co-manufacturing arrangement with Dairy Industries Jamaica Limited, DIJL, a member of the GraceKennedy conglomerate. "In re-launching fresh cow's milk, we realised that to the extent that Jamaica is a melting pot for persons from all walks of life, there are people who want something that is affordable and nutritious," said Nestl Country Manager Daniel Caron.

"Forty per cent of Jamaicans either have no running water or electricity or both, and that's why there is a need for small-format products like these," he said. Nestl Everyday is packaged in 80g sachets, but there are plans to add a larger 120g packet.

Nestl entered the powdered milk market with a price strategy. Lasco's soy milks retail at about $135 per 80g sachet, according to a quick sample of supermarkets, while Everyday sells for a lot less, according to Caron. "We want to make sure that it is affordable," he said. "So, in the market, depending on the channel, you can get it anywhere between less than $100 and $108, and, importantly, it is milk, not soy-based," he said.

The Everyday brand is part of Nestl's global line-up, now being brought to the local market.

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1. Nestle is an international company with the Everyday brand as part of its line-up or portfolio. The management team of Nestle has decided to come out with a new product line - powdered milk and manufacture it under an existing brand name - Everyday, through a partnership with Dairy Industries Limited in Jamaica.

Explain the discussion in Nestle's boardroom at its headquarters in Switzerland, about taking on this new venture to grow the business and the management tool they would have utilized in making this decision by using the Boston Consulting Group Matrix (BCG)

method?