Gluten-Free Cookie Dough Theme will be changed People add descriptive comments for your own slides by Wednesday. Whitney will generate script by friday night (NO LATER) PRACTICE Monday meet for group practice Cookie Dough Presented by: Whitney Chadwick, Chris Holle, Erin Howard, & Brittanie Turner

Agenda Background Market Growth & Objectives SWOT Analysis Value & Product Position The Product Competition Market Trends, Needs, Marketing Mix & Segments Financial Plan Target Markets Conclusion & Questions

Background Initiated in a 1905 merger of the Anglo-Swiss Milk Company, and the Farine Lactée Henri Nestlé Company More than 2,000 brands with 330,000 employees worldwide Products include: baby food, coffee, snacks, dairy products, ice cream, pet food, etc. Objective: Be primary leader in nutrition, health, and wellness Henri Nestle Company started in 1866 as a baby food company. In 1905 they merged with Anglo Swiss Milk Company to form Nestle as it is known today. Currently, Nestle has over 2,000 brands and over 330,000 employees in 84 countries with 32 manufacturing locations. Nestle’s current products include baby food, coffee, snacks, cookies, and many other items.

SWOT Analysis Strengths: Weakness: Threats: Opportunities: -Unmatched Product and Brand Portfolio -R&D Capabilities -Distribution Potential -Expansion Aptitude Weakness: -Inconsistent Quality -Nestlé Toll House E. Coli. Recall Opportunities: -Enter Nutritional Snack Market -Acquire Health-Based Startups -Establish New Joint Ventures Threats: -Food Contamination Liabilities -Trends Toward Healthy Eating -Cost of Raw Materials -Growth of Private Labels Strengths: As stated in the background our strengths include an unmatched product portfolio of over 2,000 brands. Investments include $1.5 mil annually in R&D. As well, Nestle maintains 32 manufacturing center and 5 distribution channels. This reinforces their incredible distribution potential. Furthermore, Nestle continually acquired new companies to further their brand and distribution. Weaknesses: Major issue includes the inconsistent quality such as packaging mislabeling. Nestle recalled recently recalled an ice cream because it was mislabeling saying it did NOT contain peanuts when in fact it did. This decreases consumer trust in the company’s ability to provide safe products. As well the e.coli. issue within the toll house brand will make producing a gluten-free cookie difficult due to the clean up requirements. In an article published by the FDA on July 13, 2009, the FDA found positive samples of the bacteria E. Coli inside Nestlé Toll House cookie dough products. Although Nestlé recalled the products, it still affected 76 people from over 31 different U.S. states in which 35 people have been hospitalized. Opportunities: current health trends in america---> enter health market Acquire health-based startup (acquisition success rate is extremely high) Joint venture within the gluten-free market Threats: food contamination liabilities due to mislabeling (possible lawsuits) growing health snack trends cost of raw material (25% increase in milk product, 2012) growth of private labels generates increase competition.

The Product Ingredients and Nutritional Factors Teff Flour Cheap Gluten-Free Option Added Nutrional Value: Protein, calcium, and iron Different Packaging Types Cookie Bar Dough Cylinder Tube Mini Cookie Bar Dough Tub Customer Satisfaction Guarantee Increase Quality

Market Needs Health Flavor Cost 18 percent of the U.S. population prefer and buy gluten-free products Health Flavor Cost

Market Trends 3 million Americans diagnosed with celiac disease 18 million Americans suffer from gluten sensitivity Nearly 50 percent of those surveyed they or someone they know has celiac or other gluten-intolerance

Market Segments Geographics Demographics Psychographics & Behavioral U.S. Focus – West coast $2.3 billion global market worth Demographics Focus on celiac and other gluten intolerances Psychographics & Behavioral Gluten conscious For our geographic market segment, we plan on launching this product first in the U.S. While Europe does have an astounding growth for celiac disease and gluten-intolerances, this product needs to first be tested before a worldwide release.

Gluten Intolerant Demographic Target Market Mothers Demographic Gluten Intolerant Demographic 30 to 40 age range Celiac disease Health conscious Other gluten intolerances Leads active lifestyle 44 million U.S. consumers Values time by use easy and convenient products First, Nestlé Global should market to the Mothers demographic. This group consists of mothers ranging from mid 30s to 40s, leading active lifestyles, thus value their time by using easy and convenient products. They will want our product for the nutritional improvements, convenience it provides, as well the given perception of homemade cookies. Furthermore, the brand message should include the benefits our research has identified due to growing health trends. Playing up the healthier alternative to families reinforces in current consumers minds the product advantages. Nonetheless, Nestlé major target market will focus on people with celiac disease or other gluten intolerances. Targeting people with celiac disease (and other gluten intolerances) within the U.S. accommodates the 44 million untouched gluten-free consumers (The Gluten-Free Agency, 2014). Moreover, this product will allow them to have a healthy and delicious snack in which meets dietary restrictions. Advertisements will be similar to those focused on the Mothers demographic, playing up product benefits. Nestlé’s market goal will be to offer consumers healthy, flavorful, and affordable gluten-free cookie dough as the health trends throughout America continue to grow.

Market Growth 1 in 133 Americans have celiac disease The appearance of allergen-related claims such as “gluten-free” on restaurant menus has increased by 200 percent $15 billion of gluten-free food category to be generated in annual sales by 2015 Household purchases double from 5 percent in 2010 to 11 percent in 2013

Marketing Objectives Healthy product for celiacs and gluten intolerances Gluten Intolerance awareness 10% of all profits to Celiac Central Sale price will not surpass $5 Reach both supermarkets and health food stores Our objectives for the product is to provide a healthy product to all individuals, including those that have celiacs disease or other gluten intolerance. It is also in our best interest to increase awareness for gluten intolerance. This would be done by donating x% of profits to Celiac Central

Value Proposition A healthy product for consumers Allergy free product Celiacs, gluten-intolerances Allergy free product Offered in a variety of chain and health food stores Affordable Awareness Our product offers healthy product for all consumers, including those with celiacs disease and gluten intolerances. This product is aimed at being allergy and gluten free and also being offered in both chain and health food stores. $5 for the product, very affordable for consumers Bring awareness for gluten intolerances

Product Proposition More for more More for the same More for less Price More The same Less Benefits More for more More for the same More for less The same for less Less for much less

Brand Name Niche Market Competition Brand Name Niche Market Gluten-Free Market Pillsbury Kellogg Gluten-free chocolate chip cookie dough Gluten-free cereals Pamela’s Products Betty Crocker Gluten-free snack products: cereals, health bars, cookies, chips, etc. Gluten-free cookie, cake, and brown dough dry mixes Within the niche market of gluten-free prepackaged cookie dough products, a few competitors are notable. One of the competing firms, Pillsbury, makes gluten-free chocolate chip cookie dough, and Betty Crocker also produces a few gluten-free cookie dough dry mixes. Both organizations are owned by General Mills, but operate independently. Nonetheless, in the general gluten-free snack market competition would include several gluten-free items: cereals, pre-baked cookie dough, health bars, and chips etc. Some major competitors in the gluten-free snack market are companies like Kellogg and Pamela’s Products. Key points in 4P’s: Price varies between reseller Sold to Major Grocery Chains and Leading Retailers Market toward modern families, mothers demographic, and health food market

Marketing Mix Distribution Pricing Marketing Communication Nestlé’s Current Distribution Method Micro-Distributors Pricing Current Cookie Dough Products: $3.99 Gluten-Free Cookie Dough Products: $4.03 Marketing Communication Advertising Direct Marketing PR Social Media Networking Sales Promotion

Financial Mix Sales price $5 Variable Costs Net profit $2.45 per unit Ingredients $2.45 Packaging $0.10 Net profit $2.45 per unit Fixed costs $6.4 million Break even units: Monthly: 217,000 Annually: 2.6 million

Conclusion & Reflection Market Trends 3 million with celiac 18 million with gluten intolerance Market Needs Health, cost, flavor Gluten-Free Cookie Dough Product

Gluten-Free Cookie Dough Any Questions?

References Amidor, T. (2014, April 21). Hello gluten-free, goodbye organic? Retrieved From http://health.usnews.com/health-news/blogs/eat-run/2014/04/18/hello-gluten-free-goodbye-organic Belt, C. (2014). What does public relations exposure cost?. Retrieved from http://smallbusiness.chron.com/public-relations-exposure-cost-22390.html CBS News. (2014). Nestlé recalls cookie dough over Illnesses. Retrieved from http://www.cbsnews.com/news/Nestlé-recalls-cookie dough-dough-over-illnesses/ European Food Information Council. (2014). Coeliac disease on the rise in Europe. Retrieved from http://www.eufic.org/article/en/artid/Coeliac-disease-on-the-rise-in-Europe/ Kannall, E. (n.d.). What are the benefits of eating gluten-free?. Retrieved from http://healthyeating.sfgate.com/benefits-eating-glutenfree-6211.html Kellogg Company. (n.d.). Cereal: the complete story. Retrieved from http://www.kelloggcompany.com/content/dam/kelloggcompanyus/PDF/CerealTheCompleteStory_FINAL.PDF Kotler, P. & Armstrong, G. (2014). Principles of marketing. Upper Saddle River, New Jersey: Pearson. National Foundation for Celiac Awareness. (2014). Celiac disease: fast facts. Retrieved from http://www.celiaccentral.org/celiac-disease/facts-and-figures/ National Foundation for Celiac Awareness. (2014). Non-celiac gluten sensitivity. Retrieved from http://www.celiaccentral.org/non-celiac-gluten-sensitivity/ Nestlé. (2013). Annual report 2013. Retrieved from http://www.nestle.com/asset-library/ documents/library/documents/annual_reports/2013-annual-report-en.pdf Nestlé. (2014). Nutritional value chain. Retrieved from http://www.nestle.com/ randd/nutrition/nutritional-value-chain Nestlé Global. (2014). Distribution. Retrieved from http://www.nestle.com/randd/ nutrition/nutritional-value-chain/distribution Nestlé Toll House. (n.d.) Products. Retrieved from https://www.verybestbaking.com/ TollHouse/Products Nestlé USA. (2014). About Us. Retrieved from http://careers.Nestléusa.com/about-us/locations Nuts.com. (2014). Teff flour. Retrieved from http://www.nuts.com/ cookingbaking/grains/teff/flour.html Pamela’s Products. (n.d.). About us. Retrieved from http://www.pamelasproducts.com/about/ Recalls, market withdrawals, & safety alerts. (2014, June 27). Retrieved from http://www.fda.gov/Safety/Recalls/ucm403194.htm Simmons, N. (2013). Consumers' ideas of 'healthy' foods changing. Retrieved from http://newhope360.com/new-products/consumers-ideas-healthy-foods-changing Statista. (2014). Global gluten-free food market size. http://www.statista.com/statistics/248467/global-gluten-free-food-market-size/ The Gluten-Free Agency. (2012). Gluten-Free Market Trends. Retrieved from http://thegluten-freeagency.com/gluten-free-market-trends/ The Statistics Portal. (2012, August ). U.S. gluten-free target market 2012. Retrieved from http://www.statista.com/statistics/248572/target-groups-of-the-us-gluten-free-market/ United States Department of Labor. (2014). Wage and hour division. Retrieved from http://www.dol.gov/whd/flsa/ U.S. News. (2014). Marketing manager: salary. Retrieved from http://money.usnews.com/careers/best-jobs/marketing-manager/salary Walmart.com. (2014). All-purpose flour. Retrieved from http://www.walmart.com/ c/ep/all-purpose-flour Amidor, T. (2014, April 21). Hello gluten-free, goodbye organic? Retrieved From http://health.usnews.com/health-news/blogs/eat-run/2014/04/18/hello-gluten-free-goodbye-organic Belt, C. (2014). What does public relations exposure cost?. Retrieved from http://smallbusiness.chron.com/public-relations-exposure-cost-22390.html CBS News. (2014). Nestlé recalls cookie dough over Illnesses. Retrieved from http://www.cbsnews.com/news/Nestlé-recalls-cookie dough-dough-over-illnesses/ European Food Information Council. (2014). Coeliac disease on the rise in Europe. Retrieved from http://www.eufic.org/article/en/artid/Coeliac-disease-on-the-rise-in-Europe/ Kannall, E. (n.d.). What are the benefits of eating gluten-free?. Retrieved from http://healthyeating.sfgate.com/benefits-eating-glutenfree-6211.html Kellogg Company. (n.d.). Cereal: the complete story. Retrieved from http://www.kelloggcompany.com/content/dam/kelloggcompanyus/PDF/CerealTheCompleteStory_FINAL.PDF Kotler, P. & Armstrong, G. (2014). Principles of marketing. Upper Saddle River, New Jersey: Pearson. National Foundation for Celiac Awareness. (2014). Celiac disease: fast facts. Retrieved from http://www.celiaccentral.org/celiac-disease/facts-and-figures/ National Foundation for Celiac Awareness. (2014). Non-celiac gluten sensitivity. Retrieved from http://www.celiaccentral.org/non-celiac-gluten-sensitivity/ Nestlé. (2013). Annual report 2013. Retrieved from http://www.nestle.com/asset-library/ documents/library/documents/annual_reports/2013-annual-report-en.pdf Nestlé. (2014). Nutritional value chain. Retrieved from http://www.nestle.com/ randd/nutrition/nutritional-value-chain Nestlé Global. (2014). Distribution. Retrieved from http://www.nestle.com/randd/ nutrition/nutritional-value-chain/distribution Nestlé Toll House. (n.d.) Products. Retrieved from https://www.verybestbaking.com/ TollHouse/Products Nestlé USA. (2014). About Us. Retrieved from http://careers.Nestléusa.com/about-us/locations Nuts.com. (2014). Teff flour. Retrieved from http://www.nuts.com/ cookingbaking/grains/teff/flour.html Pamela’s Products. (n.d.). About us. Retrieved from http://www.pamelasproducts.com/about/ Recalls, market withdrawals, & safety alerts. (2014, June 27). Retrieved from http://www.fda.gov/Safety/Recalls/ucm403194.htm Simmons, N. (2013). Consumers' ideas of 'healthy' foods changing. Retrieved from http://newhope360.com/new-products/consumers-ideas-healthy-foods-changing Statista. (2014). Global gluten-free food market size. http://www.statista.com/statistics/248467/global-gluten-free-food-market-size/ The Gluten-Free Agency. (2012). Gluten-Free Market Trends. Retrieved from http://thegluten-freeagency.com/gluten-free-market-trends/ The Statistics Portal. (2012, August ). U.S. gluten-free target market 2012. Retrieved from http://www.statista.com/statistics/248572/target-groups-of-the-us-gluten-free-market/ United States Department of Labor. (2014). Wage and hour division. Retrieved from http://www.dol.gov/whd/flsa/ U.S. News. (2014). Marketing manager: salary. Retrieved from http://money.usnews.com/careers/best-jobs/marketing-manager/salary Walmart.com. (2014). All-purpose flour. Retrieved from http://www.walmart.com/ c/ep/all-purpose-flour