NESTLE

Nestle New Product Development

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Nestle New Product Development

Introduction

Launching a product or service requires extensive planning and perseverance. Success in developing new product depends heavily on how well the consumers respond to the product. Product development, in turn, rests heavily on how a business shapes its marketing strategy for the product. It is the market response, positive or otherwise, that shows how well the consumers responded to a product, and how willing and likely they are to make repeated purchases of the product. The most crucial task at the product launch is determining when and how the product will be launched. A range of internal and external factors will influence on deciding the timing and mode of product launch. Internal forces impacting this decision include logistics and distribution, a trained group of sellers, and a flexible marketing plan that includes all the necessary elements for the product's success. Nestle ChocoLicious Milk Powder will be a new brand, which will be available in the UK market. The product will cater the requirement of children who needs to stay healthy and fit. Nestle ChocoLicious Milk Powder would be produced and designed primarily for those mothers (customers) who are worried about their children's health and need a product that will improve their children's (consumers) health, in a true sense. The paper highlights the situational analysis, strengths and weaknesses of Nestle Choc 'O' milk, marketing mix of the product launch, the new product launch strategy, and the cost of marketing plan.

Nestle ChocoLicious Milk Powder will be developed in such a way as to fulfil the market demand, and provide nutritious milk to keep the children healthy, who cannot resist they mouth-watering taste and delicious smell of chocolate along with the consideration of the health aspect, as well. The Nestle ChocoLicious Milk Powder will be an absolute mother's selection for their kids, who ensure the proper care of their children's health, growth and nutrition. The product will not only focus on a market, but will target the entire food industry by with the help of healthy guides and information brochures to the food consumer (Baxter 2004, 491-500).

Situation Analysis

A highly competitive market exists for the confectionary market the world over. When talking about the demand for milk in U.K, we discuss about a highly competitive market, with numerous, experienced and aggressive players like Alaska. Alaska offers a line of Ready-to-Drink milk products that come in both plain and flavoured milk. Alaska Milk Corporation maintained its leadership in the powder milk market, with market shares expanding on the Company's strong value-proposition. Alaska Market share in the milk powder market continue to maximize and expand trade coverage and distribution, especially in public markets and untapped down line retail outlets.

The mass consumer market is extremely competitive with local and imported production in U.K. The access to the open trade agreement can impact this business by bringing either new competitors or modifications in distribution and production process. The unique point by which the Nestle ChocoLicious ...