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Bilal Tai

Ms Burger, college marketing period 6

Nestle Background Info
• Headquartered In Switzerland, Nestle is one of the largest
food & nutrition companies in the world
• Founded in the 1900s as a milk chocolate manufacturer,
Nestle has grown to offer a diverse set of products in
over 83 countries, employing 283,000 people
• Growth began after the second world war, with revenue and
products nearly doubling in a span of 20 years and the
brand expanded to include over 30 countries
• Nestle’s revenue now accounts to around 237 Million CHF
(Swiss Franc)
• Products are sold and distributed through retail brand
stores as well as common supermarkets, convenience
stores, gas stations etc.
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Various Nestle Products

Nestle Smarties, Sugar-Coated Chocolate Candy

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Toll House ready to bake Cookie Dough

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Products continued

Hot Chocolate Mix

• Chocolate Based Candy Products
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Flavored Water & Soft Drink Products

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Nestle’s Proven Success
Given Nestle’s size and current presence in the American
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Market, it is necessary to expand their product line here in

America to maximize corporate revenue and increase it’s
presence in the consumer food market. Nestle has proven
successful in competing against sweet giants such as Mars,
Inc. and Hershey Co., so there is no reason not to bring a
product to market that has been overtly successful
overseas. With over 6,000 brands tailored to specific
markets, Nestle has been successful in infiltrating volatile
market conditions and developing products that win with
consumers. Nestle is not only one of the most successful
candy companies in America, it is one of the most successful
the world over.
American market

• One of the largest markets in the world, with over

300million people
• Annual GDP of $14.256 trillion, making it the largest single
economy on earth for a Western nation
• One of the worlds largest governmental and socioeconomic
powers, embraces a culture which encourages capitalism,
consumerism, spending and luxury
• Originally founded as a British colony in the 1600s, since
their independence in 1775 America has grown to a large
and prosperous nation that embraces open market
capitalism
• America is the largest importer of goods in the world,
making it an ideal candidate for Smarties to be imported
• Contains some of the largest and most powerful
cosmopolitan cities in the world, such as New York City
and Los Angeles
Branding and Changes
In theory, no outlandish changes need to be made to bring
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Smarties to the American consumer market. Not only are

American consumers familiar and enjoy sugary coated
chocolate confectionary products, they have a history of
performing strongly, as evident with products such as
M&M’s. For these reasons, Smarties will have success in the
American market and be able to sell well here. The only
changes to the Smarties brand & packaging will be to
reformat all spellings to the conventional American way, for
example from colour to color, and units will also be
converted to the American standard. This will facilitate the
transition into the American market and allow the product
to be more easily understood and recognized.
 Why America?

America is a consumer haven; It is the pinnacle of the western

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world and one of the largest consumer markets on the face of

the earth. Products like Smarties already exist in the
American market, and because of their familiarity Smarties
will be embraced and will be viewed as a viable competitor to
products such as M&M’s. To ensure success in the American
market, it will be important to integrate Smarties into our
candy product line and market them as simply another great
addition to a strong product makeup. It will also be
important, as many American consumers will never have
heard of the product before, to stress their likeness to
similar American products to encourage consumers to try our
product. America is one of the only large markets in which
Smarties are not present, and for this reason it is important
we bring Smarties to the American market.
How America will benefit
America will benefit by having one of the most successful
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European candy brands come to it’s shores and serve as a

viable alternative and competitor to such brands like
M&M’s. By introducing another option into the market,
consumers will have the ability to have options when they
reach the checkout counter, and those who are loyal to the
Nestle brand will now be able to satisfy further their candy
needs with this new niche product. Smarties will bring one
of the most popular European candies to America and add
well needed diversity to the market.
Target Market
For our candy products specifically, our target market is:
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• Ages 8-60, Male & Female Consumers

• Those able to consume sweets/chocolate/nut products
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Due to the general appeal of candy in the consumer market,

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our target market is large and directed at many individuals.

For the Smarties brand specifically, we will be focusing on
the 8-24 group, as this is our core candy age group and the
most likely to be interested in trying and purchasing a new
brand of candy
 SWOT Analysis

Strengths: Reputable and well known candy company, candy

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has garnered success in foreign markets prior to American

introduction, skilled and well versed marketing team ready
to develop and familiarize Americans with Smartie brand
Weaknesses: Competition from similar products such as M&M’s,
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inability to appeal to those with food allergies to cocoa and

nuts, unfamiliarity with brand may cause problems early on
Opportunities: Bring a new successful candy product to the
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American market, Introduce Americans to alternative candy

products, those who travel to Europe often will already be
familiar with the Smarties brand
Threats: Dominant candy brands such as M&M’s dominate the
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candy market and make it difficult to break into their niche,

many may be afraid to try an unfamiliar and unknown
product
 Promotion #1
This ad campaign will run on busses, trains and other public
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transportation mediums for the first 6 months after the

product is introduced in the American market. There will be a
poster with a superimposed image of smarties, encouraging
consumers to try the “New and Exciting” alternative to
common sugar coated chocolate candies. There will also be a
word placed at the bottom of the advertisement, and if you
take a picture of it and bring it to a participating retailer, you
will be able to receive a small trial size of smarties. This
promotion will allow us to get the product name out there
and better familiarize consumers with the smarties brand,
hopefully promoting sales and further aiding the smarties
brand initiate success in America. This promotion will
increase our profit margin by anywhere from 5-10%
dependent on the actual turnover of those seeing the
advertisements to going to the store all the way to actually
purchasing the product after trying it. By interacting with
consumer out of the sales environment, this decreases
pressure to immediately purchase the product and allows
consumers to independently decide if they wish to actually
try the product depicted.
Promotion #2
This promotion will be run in store only, for a two week period
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after the initiation of smarties. Consumers will be able to

submit to a random taste test, with one brand being
Smarties and the other being a leading competitor in the
candy market. Consumers will then have to choose which
they felt was better, and no matter which they choose they
will be given a packet of the new Smarties. This promotion
we hope will increase familiarity with the product and allow
consumers to learn more about it while interacting with the
product in an enticing and fun way. By allowing consumers
to participate in store, if they like the product they will be
able to purchase the product immediately after trying it. We
hope that this will potentially lead to revenue for us, and a
lifelong association with the Smarties brand for the
consumer. This promotion will increase our profit margins by
as much as 25% by meeting consumers in the sales
environment, and giving them immediate stimuli to
hopefully encourage them to purchase our product.
 Opinion

International Marketing is an important component of any

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company given the current global economy. Because our

markets and our consumers are so interconnected, it is
important to capitalize on this and expand to markets the
world over, not only increasing profits but increasing our
target market as well. A successful company is one that not
only diversifies but adapts to changing economic conditions,
and given the current climate expanding internationally is
one of the safest ways to ensure economic health across the
board. Nestle will benefit from this new expansion by simply
adding another channel to it’s already successful candy
enterprise, thereby increasing it’s product lineup in
developed markets as well as appealing to more consumers
than ever before. Smarties are a move in the right direction
for Nestle America, and there is no reason that this idea
cannot be expanded to markets in addition to America that
do not carry the Smarties brand of candy.