Reference no: EM133653882

Assignment: Strategic Global Business Management- Business Research

Introduction:

Nestlé, a global food, and beverage powerhouse is committed to the transformative power of nourishing, delightful food that respects and preserves resources for future generations. With expertise in nutrition, health, and wellness, Nestlé contributes to happier and healthier lives for people and pets. Nido Milk, a trusted brand under Nestlé, stands out for its diverse product range catering to various age groups, providing a nutritional foundation for growth and development.

This study aims to explore how Nido Milk can enhance its brand by leveraging better materials, ingredients, and packaging, aligning with global sustainability goals. The research investigates Nido Milk's focus on responsible consumption and production, examining its packaging strategies and addressing consumer demands.

Relevance of the product

The significance of Nido Milk and its packaging solutions in advancing Sustainable Development Goal 12 is evident through a five-pillar packaging strategy. This strategy emphasizes reducing plastic usage, scaling reusable systems, designing eco-friendly materials, supporting recycling infrastructure, and fostering behavioral change. Nido Milk's commitment includes recyclable and reusable packaging, the use of recycled and renewable materials, and a substantial reduction in total packaging weight. Nestlé's contributions extend to employee training and global educational campaigns and the four pillars of the sustainability approach are Environment, Human rights, and Animal fare. Initiatives like the ALDO refillable dispenser and trials of reusable packaging further position Nido Milk as a sustainable product aligned with SDG 12, working towards a future with minimal waste (Nestle, 2013).

Research Nestlé's efforts address food insecurity, delivering77 130 billion servings of affordable, fortified products in 2022. Their commitment to transparency, as the first to disclose nutritional values using the Health Star Rating system for the entire global portfolio, showcases accountability. Active participation in global sustainability efforts, advocating for initiatives like the UN Treaty on Plastic Pollution and COP conferences, coupled with top-ranking advocacy recognition, solidifies Nestlé's commitment to responsible practices among food and beverage companies (Bulck, 2022).

Management Problem of Nido

It has been discovered that the patronage for Nido Milk has dropped drastically in the past 2 years due to the below reasons.

A. Limited Availability in Mainstream Grocery Stores
B. Nutritional Comparison with Similac Grow & Go
C. Requires Proper Storage

This is problematic to management for several reasons which are decreased sales and revenue to the company, brand reputation or eroding, customer dissatisfaction, and supply chain problems leading to limited availability inefficiencies or breakdowns in distribution channels.

Ensuring every Nido milk carton is up to standard involves closely monitoring every step of the production process. This means using quality materials to make the milk, putting an eye to checking every stage of production, and making sure it tastes great and the same its safe, and has all the ingredients required.

To achieve this, there is a great need to test it a lot, ensure that every team member is doing their job right, and fix any problems quickly enough so that people will keep liking it.

Packaging Efficiency: Making sure Nido milk is packaged properly and gets to shops without any problems. This entails using the right materials, managing the amount of milk produced, and working out how to recycle the packaging.

Quality Control: Ensuring every carton of Nido milk tastes great, is safe to drink, and has all the right nutrients. This means checking the milk and packaging during production, making sure the machines are working well, and fixing any issues immediately to keep customers satisfied.

Increase Production and Distribution: Put more effort into increasing production capacity to meet demand and ensure a steady supply of Nido in stores. Improve distribution channels to reach more stores and ensure consistent availability.

Nutritional Content Improvement: Review and adjust the formulation of Nido to ensure it meets nutritional standards and consumer expectations. This may involve fortifying the milk with additional vitamins and minerals to address any deficits.

Improve Communication and Education: Teach retailers and consumers about the nutritional benefits of Nido and the importance of proper storage. Providing clear labeling and instructions for storage to minimize quality degradation.

Research Objectives

The Research Objective is to explore the subtleties of customer behavior and preferences related to Nestle's Nido Milk. The numerous elements affecting consumers' choices to buy Nido Milk over other milk substitutes, like fresh milk or rival powdered milk products, is one of the main areas of inquiry that we investigate. We aim to gain knowledge of the distinct value proposition of Nido Milk in the perspective of consumers by analyzing several characteristics such as price sensitivity, convenience, perceived nutritional advantages, and brand loyalty.

This study also attempts to evaluate consumer satisfaction levels with Nido Milk by investigating their experiences with the product, including preferences for taste, convenience of preparation, and general contentment with the quality of the product. Determining opportunities for development and preserving brand loyalty requires an understanding of consumer happiness.

In addition, our objective is to investigate how customers view the nutritional advantages that Nido Milk provides in comparison to alternative milk. This involves looking at how consumers perceive and comprehend the nutrient enrichment of Nido Milk, including its vitamin and mineral content, and how these views affect their choices when making purchases. To examine the consumer demand and evaluate the target statistics, marketing avenues, and branding methods used by Nestlé to promote Nido Milk to expand their product improvement.

Task

Question 1. How do customers perceive and understand the enrichment of Nido Milk compared to Alternative Milk?

Question 2. In what ways does convenience influence consumers' preferences for Nido Milk, particularly in terms of preparation and consumption?

Question 3. What are the opportunities for development in enhancing consumer happiness and preserving brand loyalty for Nido Milk?

Question 4. Why do consumers perceive nutritional differences between Nido Milk and Similac Grow & Go and how can these perceived nutritional advantages influence consumer choices?

Question 5. What improvements can be made to better communicate the nutritional benefits of Nido Milk and proper storage practices?