Product Service Development: Nestle Multigrain Chocolate Bar Launch

This document discusses the product service development process of Nestle and the launch of their multigrain chocolate bar. It covers the market opportunity, marketing 7Ps strategy, analysis of competition using Porter 5 forces, and more.

PSD

TABLE OF CONTENT
INTRODUCTION..........................................................................................................3
OVERVIEW OF COMPANY...............................................................................................3
MARKET OPPORTUNITY.................................................................................................4
Marketing 7Ps strategy.......................................................................................................6
Analysis of competition within an industry by using Porter 5 forces............................8
Financial Overview............................................................................................................10
REFELECTION...........................................................................................................10
Gibb’s Reflective cycle......................................................................................................10
CONCLUSION............................................................................................................13
REFRENCES..............................................................................................................14

INTRODUCTION
Product service development is understood as one of the most important step
within company business functioning to gain strong place within the functional
paradigms and how to gain wider scope among consumer market share. Nestle is
Swiss multinational food and drinking processing company headquartered in
Switzerland which produces large variety of products, innovative services within all
parameters for gaining stronger position and higher goodwill. The report explains
how company plans to launch new product launch which is multigrain chocolate bar,
with high grains and nutrition value to wide consumers from all age groups around
the world. Report explains market opportunity such as proposed product or services
with explanation of how planning, marketing and integration of innovative pricing can
be enabled into company business decisions for launching of product. The report
explains processes applied into development of specific service or product launch
where life cycle stage in company portfolio works as one of the biggest factor to work
on the advancement factor for gaining stronger position onto industry for higher
goodwill and profitable working outputs . Report explains how food product launch
line and management choices are required within individual product launches and
services, where marketing testing, product and service launch along with distribution
will be focused Report discusses porter 5 forces analysis through which compostion
of finance and (Cooper, 2019). sales projection is highly focused to gain wider scope
and networking for stronger
OVERVIEW OF COMPANY
Nestle is a Swiss multinational food and drink processing brand widely
spread into various countries around the world, with having large high quality
standards products portfolio and services and has wide corporation and
partnerships with global audience. The brand is one of the biggest brand into food
and beverage global industry which has been committed to enhance high quality
living standards of all consumers and contributing to healthy life patterns. Nestle has
been widely known for vast quality services, present on social media marketing
channels and to work as sole unit which has provided wide range progressively
among consumer preferences, accounting its wide audience health concern factors
where brand has been continuously working forward. The brand has been recently
working to bring before high energy multi grain chocolate bars with its strong high

nutritional value composite to wide factors of yielding onto increasing demands
among consumers to have best healthy bars.
MARKET OPPORTUNITY
Nestle posses wide market opportunity for the new food product launch into
food services in company portfolio where wide profitability and higher strength of
wide consumer demands is there. The designing of product or service taking in
account to market testing has been focused to bring on detailed spread and wide
networking among business space into consumer oriented food services. The multi
grain chocolate bar with high nutrition value launching by Nestle ahs wide market
opportunity and has strong market determinants developing into wider customised
market options where the health factor is focused (Hao, Qi and Shen, 2019). There
is wide market opportunity for this product to be launched by nestle which is one of
the best brand to bring before wide product choice for people from all age group who
are not only heath conscious but also look upon new variety into chocolates which
are less sugary. The market opportunity and initialisation of product launch into
market opportunity by Nestle can be assessed by the life cycle stage of product
where there are 4 stages within company which brings before wide steps and
fundamental criteria which are highly correlated with the wide market opportunity
factors through which nestle can successfully launch its nutritional bar, multigrain
chocolates.
 Introduction stage: This being the first phase where Nestle will gain analysis
wide functionality and analysis onto what are the marketing paradigms into
current business scope where the focus will be to pertain wide rational
working initiatives onto how rational synergy can be explored. The cost of
things, and working fundamentals such as research and development which
will undergo shall be focused on gain positive market analysis of how the work
opportunities can be explored further. Nestle at this phase of product launch
will make all details of how new synergy of work composition with
technology factors, which are keenly progressively will be targeted to address
healthy food ingredients consumer choices (Horvat, Granato and Luning,
2019).

 Growth stage: This step is analysed by how much string growth in sales and
profits have been recognised by company which will enable to factorise
further market scope and benefit the wide economies of scale in production
for gaining how much cost margin is there. The growth stage will make it
possible for Nestle to invest money into strategically decided promotional
activities, which will maximise potentiality of growth and how to develop new
working paradigms to bring on new synergy of innovation. Nestle at this phase
will also take into account product testing, so that all the health factors are
within stated guidlines and use of all healthy grains are effectively =
undertaken (Hu, Acimovic and Van Mieghem, 2019). Maturity stage: At this stage the Multi grain chocolates are already
established in the market and has also being gaining strong paradigms of
new marketing synergy of innovation with continuous analysis of how
investment is able to get return for the company. Nestle will also consider
wide product modifications or improvements which is highly important to gain
competitive advantage in the food industry in which there is continuous boom
onto the food industry. Maturity stage will also enable to focus onto strategic
planning and management of new product launch is gaining stronger
determinants into food and beverage industry. Nestle at this step will also
plan to expand wider business segments into international countries market
where there are not only wide competitive working potentialities but rationally
in built scope will be in detail analysed (Iqbal and Suzianti, 2020).
 Decline stage: At the last phase of product launch Nestle may face shrinking
composition factors as the product is going under high competitive business
factors and also there is wide chance of fluctuation into consumer preferences
where they may feel wide variety of products coming up within food and
beverage industry. The decline may be highly inevitable but although Nestle
with strategic planning and investment functionality with less cheaper
production methods and cheaper market factors will be able to develop strong
market presence. The brand has to adopt high innovation and technical digital
platforms to gain wider audience reach and enter into international marketing
segments where there is also high scope to gain growth among consumer
preferences along with metrics through which it can also gain higher goodwill.

The life cycle of product launch within nestle company has signified
how each step will be able to bring before huge marketing factors, new
research and development investment which will enable Multi grain chocolate
bar launch with wider functional efficiency. Introduction, growth, maturity and
decline phases at product launch will enable to bring on diverse functional
paradigms which are targeted for effectively building on consumer goodwill
along with higher preferences and strong quality factors.
Marketing 7Ps strategy
Marketing 7ps are highly integrated with advanced strategies for higher
innovation into marketing paradigms with continuous creative factoring of technical
advancement through which Nestle can highly integrate new technology metrics with
wide consumer awareness focused service and to yield onto rational goals through
which more profitable outputs can be brought forward. Place: Nestle company will significantly focus onto place factor by largely
bringing the multigrain chocolates into market and among digital shopping
places where new standards of wide innovation is focused to pertain onto
consumer demands factors. The place factor will make sure that all stores
have wide availability of all products, new launch paradigms such as
innovative marketing through which Nestle can yield onto new synergy of
technical advanced (Nieroda, Mrad, and Cui, 2019).
 Product: Nestle will focus to build wide high quality standards of all multigrain
chocolates and energy bars to gain wide focus and less sugar factors through
which sales will be increased significantly. The brand will also focus to attain
strong product quality metrics, rationally use best healthy grains for gaining
consumer oriented services and product. Price: Nestle company shall focus further to keep an high affordable price
range for the multigrain chocolate which will enable to build wider scope for
consumers , children and adults to purchase. Competitive factor is also an
important component within the price paradigm through which new audience
can also be targeted for higher captive functionality (Thongpapan., 2019).
 Promotion: Brand will use latest technology media services and social media
platforms for wider promotional activities through which new graph services
will be enabled into product launch. Nestle with its high goodwill among global

consumers to be one of the best brand for bringing forward healthy food and
beverages have high potentiality for gaining strong market share factors.
 Physical evidence: Nestle stores physical evidence can be analysed with
wide number of functional chains of stores into global countries hemisphere
through which it has built competitive market space into world. The stores also
has wide availability of the company new launched product such as the
multigrain chocolate energy bars which will make sure all consumers are
able to receive the chocolates (Tyulin and Chursin, 2020).
 Packaging: The packaging of all multigrain chocolates energy bars will be
highly attractive to gain wide appeal among children and form al age group
people where the brand will also make sure to program out all health factors,
ingredients in use among chocolates prescribed behind chocolate wrappers.
Packaging works as one of the biggest factor to bring consumers widely close
to the new launch product, and also make sure that there is use of
innovation among all paradigms to attain higher scope goodwill factors.
 People: All management and employees working at Nestle are highly trained
and specifically functionally working with high advancement = to bring before
best productive services, high use of quality ingredients into production and
innovative marketing for captivating large consumer market share. Nestle has
been using best skilled employees, investing into their training parameters to
attain stronger synergy of effective strong marketing for building wide scope
into international levels.
The Nestle brand with innovative 7ps of marketing where new launch
of multigrain energy chocolates will be targeted to bring on rational functional
new synergy for stronger technical advancement, keenly bringing on
productively factors through which keen factors are worked on. Marketing is
one of the best functional parameter through which nestle brand can work
into food and beverage industry being highly competitive function into new
rational levels through which higher profitable working goals can be developed
for future attainment. Consumer preferences shall be gained onto new synergy
of advancement, by use of social media through which audiences shall be
gained strong preferences. Nestle company will be able to effectively introduce
innovative strategies with 7PS of marketing working onto all factors for
technical advancement and building wider promotion among consumers to

yield onto keen factors for all multigrain energy chocolate bars (Zhou, L. and
Gupta, 2019).
Analysis of competition within an industry by using Porter 5 forces
In order to determine the competition within an industry, Porter five force
model is used that helps to examine the external environment within a country.
Therefore, there are around five force which help Nestle to examine the whether it is
a market leader or not.
Competitive rivalry (high): In order to introduce new product in the market,
Nestle already faces tough competition within its market. As consumer food industry
faces intense competition from Kraft Foods, P&G and Group Danone. On the other
side, Kellogg’s also offer best product in breakfast cereal but by offering new
Multigrain chocolate grain to their customers, company easily attract range of new
customers by offering new promotional tools. Thus, it is clearly reflected that in order
to retain market share, company is offering new product which in turn assist to
enhance customer base (Varelas and Georgopoulos, 2017). Also, to remain
competitive at market, every top company working under the food industry, keep
providing new products which help to raise customer loyalty and draw attention of
many customers towards them.
Threat of new entrant (Low): The food industry is diverse and that is why, it
makes a new entrant tough. Even there are number of entry barriers because
existing players already occupied the largest market share, also understand
customer needs too. In the context of Nestle, company already occupy the largest
market share in UK and have a strong distribution networks and economies of scale
which help to offer the product at low rates. Therefore, it is clearly reflected that this
market barrier entry makes a threat of new entrant low (Porter five force model for
Nestle,2020). For example, by offering innovative product to their customers,
companies like Nestle keep draw attention of many customers which directly
enhance the brand image of a company at different level.
Bargaining power of suppliers (low):Having a brand image and operating
at different country, which means organization requires suppliers in massive
quantities (Ulubeyli, 2017). Thus, Nestle also have range of suppliers but they did
not negotiate with the firm in regards to changes in the price. As companies wants to

sustain long term relations with the suppliers by offering them a good quality of raw
material for a product. It also changes the switching cost when it changes a supplier,
then it is moderate while entering into a new market.
Bargaining power of buyers (high):The food industry generally have a high
power of buyers and it is because of facing long term competition. Also, the
switching cost is low for the customers and even there are many customers who also
sell the same variety of product to their customers. So it is clearly reflected that by
determining the need of their customers, company is offering the product which help
to develop brand loyalty from their buyers. Thus, it is stated that by offering high
quality product with low price, customer definitely attracted towards a brand and this
in turn assist to enhance market share by offering new and innovative product
(Juliana and Nyoman, 2019).
Threat of substitute (high): Small shops and product offered by Nestle have
variety of substitutes such that bottled water and pasteurized milk which are already
available in market. On the other side, most of the customer prefer to use handmade
product and this in turn shows high threat of substitution (Ma and et.al.,2018). While,
company also faces some allegation with regards to the not providing healthy
product and that is why, it is suggested to offer Multigrain chocolate bar to their
customers which help to increase sales and focused upon the health conscious
people too. Further Nestle also strives to highlight the healthy aspects of its product
in order to tackle the substitute and hence it is high.
As per the product life cycle stage, it is lies under the growth stage where
testing is done before implementing new product into market. Also, it is analyzed
through this stage, which for innovative product, there is a limited competition at the
stage because pricing can be at higher level and even both product’s demand and
profit is keep increasing for broader audience. In addition to this, it is also analyzed
that when the product will increases, and it comes at maturity stage, the sales will
lower down, but competition is increases (Paschen, 2017). So at this stage, features
should be enhanced in order to remain at market. So with the help of life cycle stage,
it is clearly define that all the stages must be followed by Nestle because each stage
has its cost, opportunities and risk which makes a product range differ from other.

Moreover, it is also stated that as Nestle have astrong distribution channel
and also have a good suppliers which definitely help the company to successfully
launch the product at global level in order to enhance the brand image and financial
performance.
Financial Overview
In order to successfully launch the new product within a market, company has
to set the budget which is as mention below:
Particulars Amount (£)
Human resource 253
Financial Resource 120
Promotional strategy 250
Stationary 14
Miscellaneous expenses 450
Transportation 147
Total 1234
Moreover, it is clearly reflected that Nestle have a strong financial
performance and for that it may easily invest the initial amount in order to
successfully launch the product in market and this in turn assist to attract most
consumers as well. Hence, total or approx.£1234 is required which further aid to
meet the define goal. Also for initial investment company do not require any amount
because it already have a strong financial performance as compared to other
companies and that is why, for launching new product in market i.e. Multigrain
chocolate bar, it is necessary to set a budget and keep monitoring all activities which
help to determine the progress of plan.
REFELECTION
Gibb’s Reflective cycle
It is an effective approach to determine about different individuals learning. I
used this model to demonstrate my learning experience about new project through
it’s five stages. The project was generally based on new product/service launch. The
model is described as follows:

Description: The project was based on new product launch that was my first project
and I was damn excited while working on this project. I played role as product
manager in this project and it was big task for me to launch such new product or
service into the market so that organization can get advantage in future as well. I had
a lot of pressure from my organization due to my designatedpositioning in
company.As role of product managerinitially I did deep research in the market
whereas organization want to introduce new product. Deep market research
supported me understand needs and expectation of the customers because United
state is a financial and multicultural country wherein different type of people live and
have different choices for the foods. So, I collected feedbacks from customers and
analysed all competitor actions in the market. As I have good communication skills
so it became easy for me to take review from people about their expectations. I
practicedvarious approaches to develop innovative product which could be
introducedinto the market in future as resultant will lead continuous growth in
business. To make my work effective initially setsguideline by me to conduct
differentactions in order brief clearly about new products (Al-Jubouriand Al-Jubouri,
2019). I also concluded schedule that involves in all key activities that I require to do
in order to gain the brief information about new product. The brief information highly
helped me to gain all key objectives behind the task. As I decided to launch
multigrain new chocolate that are sugar free and does not have any cholesteric
ingredients. Marketing manager of the company was absent in organization so in
that state I have to handle position of marketer and guided marketing team. So, to
analyse suitability of new product in UK market applied 7p’s marketing strategy by
me and marketing team members wherein I elaborated all p’s of model in efficient
manner. Thus, I learned how to analyse suitability of products in country. Then
marketing team members applies porter’s five force model to analyse competitive
actions and opportunities for the company in respect of new products. It was new
experience for me because I did not know how to analyse competitive market.
During this project I found myteam were lacking behind of analytical skills that
caused I unable to interlink favourable and unfavourable situation. Regular feedback
process also was crucial part of the program because feedbacks supports to improve
all committed mistake and leads necessary change which can enhance the
significance of the project. that’s why I have taken all feedbacks from staff members
about my performance without hesitation. I felt more comfortable when I completed

this task within time frame. When I kept proposal about new product i.e. multigrain
sugar free chocolates in front of everyone. Then I got good reviews from my senior
team members about team membersand I experienced some negative comments
which I received. I knew the reason of negative comments such as my team was
lacking behind numeracy skills so they unable to overview in respect financial and
capital investment.So, I have decided I will improve my team members skills so that
in future they could perform better in similar situation.
Feelings: The whole learning experience was productive part of my project.As
product manager role I felt that I managed my team more effectively during this
project. I set tasks for individuals and delegated them so that individual understand
their responsibilities and perform task perfectly. Initially my team members become
restless to listen about new products but some them were excited and kept their
viewpoint while making product plan. Thus, whole team were working more
effectively (Greenfield and et.al., 2017).I analysed that level of interaction between
team members were good and they gave priority to each member to keep their
viewpoint which was quite impressing. While organizing new product plan I felt that
some team members were not performing well which directly impacted overall
performance of team negatively.
Evaluation: The whole product project had provided good and bad experience. I had
analysed that there were various things which have done more effectively like my
team put more efforts to introduce new innovative products. Due to open
communication every member of product management team was communicating
each other effectively and influences others to keep their innovative views in the
context of new product. Teamworking was quite impressing that led effectiveness in
this project. Due to high understanding of team members helped to achieved goal of
the project within time frame.The bad experience was that my team unable to
overview of financial that could improve effectiveness of project. but overall entire
project was qualitative.
Analysis: In last of the project I have analysed the entire scenario (Sweetand et.al.,
2019). I have analysed that I never pay attention on my team weak area that causes
they unable to overview on financial plan.Otherwise I determined that learning was
more productive for my team member as well as for me as it was not like another

project wherein emphasized on product improvement not on sustainable product but
this project was based on sustainable practice. I also learned about the sustainable
product. initially me and my team found numerous difficulties but we performed much
well. my team perform very well during this project.
Conclusion: This stage mainly emphasizes on what have learned and what could be
done better to receive more improved outcomes. I learned about sustainable
products and I practiced various managerial skills to led effectiveness in the project.
My team learnt different skills like analytical skills, teamworking, communication
skills, numeracy skills, time management and work management skills. I can
summarize that communication skills and teamworking skills my team have learnt
about the most in project (Sekarwinahyuand et.al., 2018). I learnt how to implement
different framework to analyse new product profitability in the market and company.
Overall project was good but I think there are other skills like analytical skills and
numeracy skills could have been improved in future.
Action Plan: In the case of future project I have decided to improve numeracy and
analytical skills in my team members so that all members become more productive.
In this project I observed my team member has good communication skills, decision-
making, time management and work management skills but lack of numeracy skills
and analytical skills did not get approximated outcome which I expected. So, I will
conduct skill audit and PDP plan that will support to improve my team members skills
effectively and will lead productivity in their working for the future such projects.
CONCLUSION
The report can be concluded with detailed explanation onto how new product
launch and service within food product launch is strategically framed within business
scenario for gaining stronger position and higher competitive place within business
scenario. The report has widely concluded how Nestle being one of the most high
goodwill attained brand within world paradigms has worked out to be best goodwill
attained brand with its high quality standards. Report has also examined how new
product launch such as multigrain chocolate bar which will be marketed with its high
composite nutrition level among all age groups of people and how the marketing
7Ps will be effectively used. Report concludes how innovative marketing, financial

investment plan overview shall be framed within company departments for
launching of new product onto wider levels for technical advanced profitable services
and to pertain onto higher competitive levels. Report hqas also examined how porter
5 forces play an important role to program out higher synergy of innovation, new
synergy of technical advancement and specific functioning for the product launch by
nestle who functions with strong fundamental focus to attain wider audience with
stronger marketing factors.
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Porter five force model for Nestle. 2020. [Online]. Available through:
<https://www.porteranalysis.com/porters-five-forces-analysis-porter-model-
of-nestle/>.