Population Aging 50plus market A unique chance to grow2011/06/14

Executive summary

Population aging : a growth opportunity

Opportunies & Threats for Nestle Waters

Who are the 50plus ?

What competitors are doing ?

Nestle Waters Vision

Nestle : Key actor of Global Aging

Population aging : important possibility to grow

60plus in 2000 and 2020

21

16

24

18

21

16

19

13

18

13

13

8

1411

Pourcent of the population aged 60 ans and over, 2000-2020 (Source Senior Strategic)

2000

2020

43% of revenues (up by 15% by 2020)

51% of mineral waters (EU)

3200 billions euros in buying power (Europe – Estimation Senior Strategic)

75% of high-end vehicles 50% of for beauty products

Facts & figures

50plus marketFacts & Figures

ElderlySeniorsBoomers

65 70 80 9040 50

Who are the 50plus ? (generational approache)

Health & WellnessFoods and personal care that keep them strong and vital.

Value for moneyDepending on their life situations and aspirations

Ethics & EnvironmentalismRespond to brands who share theses convictions

Desire for new experiences Less and less loyal to brands

PleasureImportant value for food.

Ageing Well Convenience

Quality - YouthEnvironment

Reinsurance & Security & SafetyLoyal to brands which reinsurance them.

HealthLook for food compatible with their health situation (diabetes, menopause, cholesterolis, osteoporosis, transit disorders ...)

Financially conservative : have always been more conservative and continue to be with crise.

ReinsurancePracticity

Healthy products

Importantfor them

Theirneeds

Enthusiastics11%

Leaders11%

Originals14%

Fearfuls13%

Actives14%

Sociables13%

Rigorous11%

Thinkers 11%

Who are the 50plus ? (Psychographic Segmentations)

Segmentation nestle

Segmentation nestel

What is competitions doing ?

Format/ PackagingNostalgiaHealth

What are our competitors doing ?

Retail

Coca ColaPremuim Heart Wise

DanoneActimec – Danacol

General MillsFiber One - Progresso

Pepsi Co.Pepsi Natural & Throwback

General MillsWanchai Ferry

UnivelerOne of the most advance company on aging in food industry

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Visions forNestle waters

Vision

Nestle Waters leader sur toutes les generations

Satisfy a greater number of generations (5 vs 4),

with Boomers as an important target

while maintaining Seniors'

50plus with all generationsConvenienceAging well – Well being

Objective : keep Boomers' loyalty, maintain Seniors' consumption by focusing on needs

Environment

3 « ETAGES » (mettre en forme)- Functionalchoresterol, diabetes, menopause, osteoporosis, cognitive functions, Heart Disease and Constipation...

- Hydratation – Plus (digestion...)

- Hydratation – Base

Develop a Care and Benevolence image

Promote water consumption as a need in old age

Packaging Format« Easy Easy Universal Design» to use, read, carry, handle, open, understand benefits, shop, pour...

Format based on 50plus needs and accepted by younger generations

More infos : better decisionsPackaging, CommunicationSales points, Hotline, News medias...

Distribution channelsStart dialogue about Seniors with retailers. Explore new distribution channelsRetail Convenience delivery

Services

Communication« Waters for All Generations »Enlarge the current « family » representation with Seniors

Age less communicationFocus on hydration for aging well and well being

Focus on benefits for functional waters

Packaging

Local sources

Sustainable developmentSource protectionRessource protection

Water as a factor of successful agingAging Well & Well being & Pleasure

Fact : aging well is the number one need of the 50 plus. In the food industry they want both : pleasure and health.

Health issues : choresterol, diabetes, menopause, osteoporosis, cognitive functions

REDISTRIBUER LES SLIDES

Convenience

Product & packaging : « Easy Easy » Easy to : use, read, carry, handle, open, understand benefits, shop, pour...Easy for 50plus = easy for all generations = Universal Design

Format based on 50plus needs and compatible with younger generations

Environment : very important for Boomers

More informations on packaging

REDISTRIBUER LES SLIDES

Convenience REDISTRIBUER LES SLIDES

ServicesHome deliveryMore Global Informations on health

RetailingStart dialogue about Seniors to retailersEasy access to Nestle products

“When our boomer and 50-plus customers plan home improvement projects, we offer the products, services and know-how they need to create an intergenerational living space that welcomes family members of all ages and abilities.”

Roger Adams, CMO and senior vice president of Marketing for The Home Depot.

Unilever shows retailers how to follow the money

Focus on Boomers REDISTRIBUER LES SLIDES

Fit their needs – Tell them they are important. This generation feels that they have been ignored for the last 15 years.

Focus on Well Being and Aging Well with Healthy Hydration and Functional benefits

Enlarge the current representation of « family » (include Seniors in communications) « Waters for All Generations »

Focus on innovations and « easy to »

Develop a competitive strategy vs tap water

Prove and demonstrate benefits

Environment is a must

Maintain the Seniors consumption

REDISTRIBUER LES SLIDES

Promote water consumption as a need for old ageUse prescriptors (doctors, gynecologists, hospitals, nutritionists, carekeepers...)Publish reports and studies. Establish « standards » of water consumption for Seniors

Be close to SeniorsHome deliveryBetter packagingsUse carekeepersDevelop communication program with insurance & pension cies

Develop a Care and Benevolence image

Sales

Retails / DistributionsStart dialogue about Seniors to retailers. Help them to sell to SeniorsExplore new distribution channelsRetail Convenience delivery : home, drive in, through e-com, retailers, parking, special transports, for retired households, free delivery for very loyal customers.

REDISTRIBUER LES SLIDES

With strong partnerships & Acquisitions

PartnershipRetired associations (Carp, AgeUK, Aarp...)Services network. Ex. : Comfort Keepers (Sodexho-US), Una (France)...Insurance & pension companiesProfessional associations (lobbying)Companies already on Seniors (Saga in UK, Docomo in Japan...)

AcquisitionsStudy the acquisitions of water brands well positionned on 50plus market

50plus with all generations

Elderly

Baby boomers

Intergenerational communication

Generational communication

Enlarge the current representation of « family » (includes Seniors in communications)

Waters for differente generations should be advertised with Ageless Strategies

Functional waters for one generation may be advertised on benefits

Products for the old age could use a « Senior communication »

LocalFunctionalPure life

What does it mean for our differents brands ?

In aging countries : target 50plus and keep younger generations : Universal Communication based on commun values between Boomers and younger generations.

Enlarge the current representation of « family »

Include 50plus in media plan & P.R.

In US and Canada : study the opportunies to partnership with AARP and Carp

Ageless communication & functional benefits and histories

Example : Hepar focused on Magnesium

Contrex is a special case : conquer young generations and keep actual 50plus customers

Ageless & based on - Origine & heritage- Environment- Benefits

Idea in US : Study the possibity for a US local brand to be the 50plus water across the US

Nestle as a key actor of Global Aging

Nestle as key actor in Global Aging

Nestle is one of the right company to be an actor on Global Aging and Aging Well

Work with an international institut on AgingPublish researches Publish comprehensive studies for medias and customersSponsor and organise conferences on AgingDevelop an international network of experts on Aging

Example : Global survey on ageing and retirement by HSBC and Oxford Aging

See the Global Aging Actions as a strategy to conquer new territories

Now, this is the momentA unique chance for Nestle Waters to grow

- The first boomers have already 65 years- Success stories on aging are now- The big players are beginning to show interest- The market shares are taken now. Syndrome (Google vs. Facebook)