Winning in a Connected World - Nestlé Global · Winning in a Connected World Tom Buday ... market...

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Winning in a ConnectedWorld

Tom BudayGlobal Head of Marketing and Consumer Communication

Pete BlackshawGlobal Head of Digital Marketing and Social Media

Michelle AlvarilloGlobal Category Leader, Dairy Strategic Business Unit

Sebastien SzczepaniakGlobal Head of Sales and eBusiness Unit

2

This presentation contains forward looking statements which

reflect Management’s current views and estimates. The

forward looking statements involve certain risks and

uncertainties that could cause actual results to differ

materially from those contained in the forward looking

statements. Potential risks and uncertainties include such

factors as general economic conditions, foreign exchange

fluctuations, competitive product and pricing pressures and

regulatory developments.

Disclaimer

EXCELLENCE IN CONSUMER

COMMUNICATION

DIGITALLY-POWERED

INNOVATION

3

DRIVING TO CONVERSION ON

ECOMMERCE

Our Digital and eCommerce Growth Agenda

OUR AMBITION: TO BE THE INDUSTRY LEADERS IN DIGITAL AND ECOMMERCE

Excellence in Consumer Communication

4

EXAMPLES FROM ANECDOTES TO

SCALED PERFORMANCE

SCORECARD

Dramatically Reshaping Brand Perception: Lean Cuisine, USA

6.5 million video views

+33% brand perception

RESULTS

+300bps market share since relaunch

KEY SUCCESS FACTORS

Convinced women the brand understands what is

important to them

Drove positive conversations and sentiment

5

Inspiring Women to Make a Difference throughCooking: Maggi Diaries, Middle East

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Inspiring Women to Make a Difference throughCooking: Maggi Diaries, Middle East

35 million video views

Volume up 90% in UAE, 14% in Kuwait,

10% in Lebanon

RESULTS

All time high market share at 85%; +500bps

KEY SUCCESS FACTORS

Locally relevant content, powered with deep

insight on culture and aspiration.

Maggi as catalyst to make a difference in everyday

cooking.

You &

MAKE THE DIFFERENCE

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Award Winning Mobile Site – Nestlé.com

RESULTS

#1 on The World's Best Corporate Websites -

Bowen Craggs & Co. Index of Online Excellence

2016

KEY SUCCESS FACTORS

Design and navigation that puts usability first

Actively managed FAQ section signals

transparency and openness to dialogue

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RESPECT FOR TIMELESS

FUNDAMENTALS

9

From Anecdotes to Scaled PerformanceBUILDING CAPABILITIES GLOBALLY AND STAYING AHEAD

Brand Building the Nestlé Way

(BBNW)

CLOSE PARTNERSHIP WITH

KEY PLATFORM OWNERS

RELENTLESS TESTING,

LEARNING AND SHARING

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Relentless Testing, Learning and Sharing

Global Digital & Social Media Team works with pilot markets to build guidance

Learnings distributed across markets for implementation at local level

John Lewis, Nestlé and Tesco first

UK brands to use Pinterest adsBy Omar Oakes

Testing, Learning and Adapting: Coffee-Mate Natural Bliss

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2015 RESULTS

4.1 million video views, 80% earned

media impression

+3% brand awareness

2016 RESULTS

5.9 million video views, 53% earned

media impression

+23% brand awareness

2015 2016

Mobile Feed Optimized Creative: Coffee-Mate Natural Bliss

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Original TV Spot

Optimized Video

“Nestle took their TV ad for Natural Bliss Coffee Creamer and, in less than

a day, edited it for mobile feed by creating a new opening and adding text

overlays to relay their message without sound.

They showed both the original TV ad and the mobile ad on Facebook.

The original TV ad drove a 4-point increase in ad recall.

The mobile optimized version, however, drove an even stronger 10

point increase in ad recall and a 7 point increase in product

awareness.”

Source: Facebook results based on Nielsen Brand Effect studies, Coffee-Mate Natural Bliss campaign, Dec 2015

RESULTS

Ad

Recall

Product

Awareness

4 pts

10 pts

2 pts

7 pts

Optimized

Video

Original

TV Spot

Sheryl Sandberg,

COO, Facebook

Facebook Q1 2016 Earnings Call,

April 2016

Recognition from Key Global Partners

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“For over four years, Nestle has been

one of our most advanced and

progressive business partners across

ad formats, research methodology,

platform experimentation, and

capability building. And their results

over-index the industry.”

- Carolyn Everson, VP Global

Marketing Solutions, Facebook

“Nestlé have long been highly effective

using traditional media to build brands

and communicate with consumers. In a

few short years we have seen a big

shift. More agile, innovative, more

digital and emerging as a leader in the

consumer packaged goods industry. ”

- Matt Britton, President of EMEA

Business & Operations Google

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Digital Working

Media

SHIFTING NON-WORKING TO

WORKING DIGITAL MEDIA

Digital Non-

Working Media

2014 2015

29%

71%

25%

75%

Source: Nestlé Internal Data, 2015

ABOVE INDUSTRY SOCIAL

CREATIVE IMPACT

Source: Nielsen Brand Effect Studies, NIM US

Ad

Recall

Brand

Favourability

Purchase

Intent

1

4

10

17

2

6

0US CPG

Norm

Nestlé

1

Points

PROGRAMMATIC BUYING ABOVE

INDUSTRY AVERAGE

Source: E-Marketer – UK, US, China: Programmatic Digital Display Ad Spending 2013-16

Nestlé Internal Data, 2015

Industry

Average

Nestlé

32%

44%

UK US CHINA

65%

62%59%

72%

18%

GLOBAL

47%

DIGITAL ROI

OUTPERFORMING TV ROI

Source: Analytic Partners, Marketing Mix Modelling

TV ROIDigital ROI

Maggi Magic

Sarap

Source: Effie Effectiveness Index, April 2016

BEST MARKETER IN FOOD

INDUSTRY

Points

Nestlé

Mondelez Int’l

McDonald’s

Unilever

Pepsico

Mars

ETI

Danone

Alcorp SAA

Labiza

DIGITAL MEDIA SPEND ABOVE

FMCG INDUSTY AVERAGE


Dig

ital M

edia

Spend

%

0%

5%

10%

15%

20%

25%

30%

2012 2013 2014 2015

Nestlé

FMCG

Average

Our Scorecard to Date

15


DIGITAL MEDIA SPEND ABOVE FMCG INDUSTY

AVERAGE


Dig

ital M

edia

Spend

%

0%

5%

10%

15%

20%

25%

30%

2012 2013 2014 2015

Nestlé

FMCG Average

BEST MARKETER IN FOOD INDUSTRY

Points

Nestlé

Mondelez Int’l

McDonald’s

Unilever

Pepsico

Mars

ETI

Danone

Alcorp SAA

Labiza


ABOVE INDUSTRY SOCIAL CREATIVE IMPACT


Ad

Recall

Brand Favourability

Purchase

Intent 4

10

17

2

6

0

US CPG

Norm

Nestlé1

Points

SHIFTING NON-WORKING TO WORKING DIGITAL

MEDIA

4

Digital Working

Media

Digital Non-

Working

Media

2014 2015

29%

71%

25%

75%


PROGRAMMATIC BUYING ABOVE INDUSTRY

AVERAGE

4

Nestlé

Industry

Average

Source: E-Marketer – UK, US, China: Programmatic Digital Display Ad Spending 2013-

16 Nestlé Internal Data, 2015

32%44%

UK US CHINA

65%62%

59%

72%

18%

47%

GLOBAL

DIGITAL ROI OUTPERFORMING TV ROI

4

Digital ROI TV ROI


16

Digital Working

Media

SHIFTING NON-WORKING TO

WORKING DIGITAL MEDIA

Digital Non-

Working Media

2014 2015

29%

71%

25%

75%


ABOVE INDUSTRY SOCIAL

CREATIVE IMPACT


Ad

Recall

Brand

Favourability

Purchase

Intent

1

4

10

17

2

6

0US CPG

Norm

Nestlé

1

Points

PROGRAMMATIC BUYING ABOVE

INDUSTRY AVERAGE

Source: E-Marketer – UK, US, China: Programmatic Digital Display Ad Spending 2013-16

Nestlé Internal Data, 2015

Industry

Average

Nestlé

32%

44%

UK US CHINA

65%

62%59%

72%

18%

GLOBAL

47%

DIGITAL ROI

OUTPERFORMING TV ROI


TV ROIDigital ROI

Maggi Magic

Sarap


BEST MARKETER IN FOOD

INDUSTRY

Points

Nestlé

Mondelez Int’l

McDonald’s

Unilever

Pepsico

Mars

ETI

Danone

Alcorp SAA

Labiza

DIGITAL MEDIA SPEND ABOVE

FMCG INDUSTY AVERAGE


Dig

ital M

edia

Spend

%

0%

5%

10%

15%

20%

25%

30%

2012 2013 2014 2015

Nestlé

FMCG

Average


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DIGITALLY POWERED

INNOVATION

Our Digital Innovation Enablers

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External

Innovation

Open

Innovation

Internal

Innovation

Internal

Innovation

A Funny Thing Happened While in the Valley

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Cultural Transformation in a Digital World

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Agility, Results and Digital First Mindset

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Brand Managers

Media Managers

Sales Managers

Digital/eComm Leads

Impact on Markets

Program/Mindset Now Embedded in 23 Nestle Markets

91 graduates 47 Participating markets Roles Upon Return

22

DAT Projects: Transforming Our Business

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KITCHEN ON DEMAND

Developed “Uber of Kitchens”

plan to leverage excess

capacity of Nestle kitchens for

on-demand content, from

videos to live streaming.

DIGITAL HEALTH SERVICES

Proposed partnerships with

technology providers to

address issues in obesity, aging

and general health, tying in with

existing NHS product portfolio.

MOBILE LOYALTY

Developed mobile plan for

traditional retailers in Central

and West Africa including

messaging and on-ground

activation.


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External

Innovation

Internal

Innovation

Internal

Innovation

Open

Innovation

External

Innovation

NUTRITION AND FOOD

SOLUTIONS

EVERYWHERE

COMMERCE

ENHANCED BRAND

EXPERIENCES

Offer consumers new

digital / eCommerce

enabled services

Leverage connected

devices to improve

quality of life

New direct-

to-consumer models

• 30+ high potential

solutions tested to-

date

• >1/3 have scaled

Our External Innovation Focus is Increasing

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Strong Network Established to Sense and Inform

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EMERGING

PLATFORMS

ACCELERATORS &

INCUBATORS

INDUSTRY

THINK TANKS

VENTURE

CAPITALISTS

START UPS

Increasing Engagement with Prenatal Moms

Personalized experiences

Millennial focused

Fast growing app

World class content

Trusted brand

+

START HEALTHY, STAY HEALTHY: Provide unparalleled

support for moms in their baby’s 1st 1000 days

• MyGerber content

performs 220%

better on Ovia

• MyGerber content

performs 250%

better on Ovia than

other Ovia content

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Exploring New Food Delivery and Purchase Models

GROCERY DELIVERY

RECIPE BOX DELIVERYConsumers seeking

convenience/ease

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Enriching brand experience by providing layers of service beyond the product

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New MILO App

Mum’s nutrition and

performance dashboard

New MILO wearable device

Nutrition and performance tracking

Nutritional

advice/coaching &

Monitoring

Supporting parents to raise healthy, active kidsTHE MILO PROGRAM

2029809_Milo_Beyond_Case_Study_PRP014_Graded.mov




Providing world class sports coaching, nutritional advice and inspirational stories

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Dynamic content platform

Delivering nutrition, sports &

success stories.

New MILO «MEDIA»

via augmented reality on pack.

MILO grassroots sports programs

Skills acquisition sports events & camps.

Consumer

engagement &

skills acquisition

programs







LEARN SKILLS

IMPROVE NUTRITION

TRACK PROGRESS

BUILD A CHAMPION

An integrated and immersive experience for parents and kids

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MILO Champions Program Demo

Delivering competitive advantage: Encouraging early results in the prime mover Australian market

Consistent usage of around 80% of the app users

Over 2mio impressions online

20% awareness among AUS Household

Consolidated circulation of 14.5mio in earned media

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35

Growing Our Presence, Accelerating Our Work

Expanded cross-functional team

New, high profile innovation space

Meaningful experimentation funds

Business-sponsored missions

Globally focused

New, Expanded SVIO Offices - San Francisco


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External

Innovation

Internal

Innovation

Internal

Innovation

External

InnovationOpen

Innovation

New Global and Public Open Innovation Platform

37

Nestlé’s global collaboration

program

Soft launch planned in June 2016

Enables rapid sharing of ideas,

creative designs and innovative

solutions in response to stated

business challenges

How We Connect the Dots

38

SHARING ECONOMY

PRINCIPLESINTERNAL SOCIAL MEDIAGLOBAL NETWORKING

Relentless Sharing and Innovation

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DRIVING TO CONVERSION ON

ECOMMERCE

40

Accelerated Growth – eCommerce Already the 4th LargestNestlé Market

• eCommerce represents 3.9% of Nestlé Group sales

in 2015 (up by +100 bps since 2012)

• Total Nestle eCommerce sales growth 2015 vs 2014

(at constant currency): + 20%

• CAGR 2011 – 2015: +16%

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

FY 2012 FY 2013 FY 2014 FY 2015

3.9% of total sales

3.4% of total sales

3.3% of total sales

2.9% of total sales

Scope: Nestlé Group, as reported figures

Consumer Journey has Changed and is More and More Complex

41

Source: Winning the New Digital Consumer with Hyper-Relevance – Cisco January 2015

Our Strategy: Leading Online Engagement and Conversion

42

Drive brand consideration

with cutting edge eContentBoosting conversion across

lower funnel touchpoints

Shaping the industry in

mobile commerce

Creating a winning

ecosystem of partnersExecuting at AND above

market level with scale

Revolutionizing purchase &

consumer data acquisition

ECONTENTPLAYBOOK

1. Driving Brand Consideration with Cutting Edge Content

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“Above market level Service to run End-to-End eContent lifecycle”

Creation Aggregation Customization Distribution

eContent Factory

30 000 pieces of content pushed

to D2C/eRetailers in 2015

70 000 pieces of content to be

created in 2016 (20 brands)

eContent factory taking over

creation and distribution in 2017

BRICKS &

MORTAR

PURE

PLAYERS BRAND.COM OTHERS

2. Fueling Nestlé Growth with Best in Class Conversion

44

“Lower funnel media activation”

SALES

CONVERSION

12%

Nestlé Websites Digital touchpoints

With roll out in 18 key markets / 20% of total touchpoints Nestlé

USD 1bn

potentialin 2016

3. Shaping the Industry in Mobile Commerce

45

“Global Mobile App consumer engagement platform”

Nestlé USA + Infant Nutrition US will be live Q3 2016

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4. Creating a Winning Ecosystem of Strategic Partners

1st to sign a global Amazon Media Group agreement

1st to align an Retail strategic framework

1st to launch an exclusive product on Amazon in US/UK/DE/CN the same day

1st to pilot Paid search inclusive of BuyNow with Google

1st to pilot new eCommerce capabilities with Facebook

1st to launch a global Tmall store with 50 brands from Nestlé worldwide

6. Executing Winning Strategies and Plans

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Market level

Above Market

Execution of the

eBusiness

Flywheel

Local brands global expansion

Exclusive range and premiumization

Zone lead

Market lead

Global lead

Focus:

60%

Markets to lead

with support from

eBusiness team

Focus:

20%

Focus:

20% Transformational

5. Revolutionizing Purchase and Consumer Data Acquisition

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“Nesté SmartBuy Artificial Intelligence”

CONVERSION CONSUMER DATA

LIVE DEMO

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5 Key Takeaways

1We aspire to be industry leader in leveraging digital and ecommerce

to enhance lives, build great brands and accelerate profitable growth

2We are performing ahead of industry peers in driving brand and

business impact on key social platforms

3Our culture encourages and enables rapid testing, learning and

sharing, and scaling success across web, mobile, and ecommerce

4We’re shifting rapidly to an open and collaborative innovation

culture, powered by digital technology

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5We are actively identifying digitally-enabled “service layers” to

strengthen our brands

Winning in a Connected World - Nestlé Global · Winning in a Connected World Tom Buday ... market...

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