Name: Yeye Talabi
Title: After Coffee, It’s Dinner Time at Nestlé
Link: https://www.wsj.com/articles/after-coffee-its-dinner-time-at-nestle-11547035654
Time published: Jan. 9, 2019 7:07 a.m. ET
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Analysis: Nestlé is famously known for its coffee but it wants to recover from last year by focusing on higher returns by producing more essential household products. I chose this article because I thought it was interesting to read how a company mostly known for its coffee wants to offer less processed items to their consumers. This article relates to our class because it discusses some aspects of the marketing research process discussed in chapter 8. The company defines the problem which is how can Nestle expand its existing products for long- term profit. The situation is analyzed by using the already given information which is consumers who place health as a primary factor while shopping is uninterested in Nestle’s unhealthy products. Also, since coffee sales declined last year compared to the other products that Nestle sells, what area should it spend more time and money in producing more products? One of the areas proposed is selling more water. But, investor Daniel Loeb does not think that is a wise decision because of high shipping costs for companies such as San Pellegrino and Perrier. The second option is focusing on baby food. Although Nestle already has baby formula products, the U.S. and China are dominating in terms of competition. It seems based on last year’s sales, Nestle would be more successful in pet food. It sold $91 billion worth of pet food while baby food only yielded $54 billion in sales. Nestle has observed that consumers are ensuring that their pets are pampered more by eating more specialized food. Even though selling more pet food seems to be the more obvious product liked by many, it is not Nestle’s solution. I say this because even though Nestle has defined their problem and analyzed the situation, it is yet to fully interpret the data which is the last step of the market research process. It is said that pet food did better than infant items through quantitative research but no other data was given. What measures can be used to validate the data? Nestle realized just like me that since an answer to the last step is not given, no exact solution can be made.
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