Analyzing Nestle Nesfluid's Failure in France: A Marketing Case Study

This case study examines the failure of Nestle's Nesfluid in the French market, where it was positioned as a "hydranutrition" drink but failed to resonate with consumers due to a lack of clear proposition and confusion created by multiple flavors and health needs. The analysis includes a PESTLE analysis highlighting political centralization and tight administrative control, economic factors such as high taxes and supermarket chains, social disparities and racial violence, technological advancements, environmental concerns like water pollution, and labor laws. Porter's Five Forces analysis assesses the threat of new entrants, substitute products, bargaining power of suppliers and customers, and competitive rivalry. The analysis also touches upon push and pull strategies employed, a SWOT analysis identifying strengths, weaknesses, opportunities, and threats, and concludes with references to relevant research. The core problem identified is the need to understand consumer trends and attitudes and have a clear proposition before launching a new product.

NESFLUID

PESTLE ANALYSIS
 Political Factor
a.) High centralization
b.) Tight administrative control
 Economic
a.) High tax
b.) chain of supermarkets
 Social
a.) Income and social class disparity
b.) Racial violence
 Technological
a.) Good health
b.) Updated technology
 Environmental
a.) Water pollution
b.) infrastructure programs
 Legal
a.) Labor law

PORTER FIVE FORCES
 Threat of new entrants
a.) Monopoly exist
b.) Strong name
 Threat of substitute products
a.) High substitute rate
b.) Innovative products
c.) Highlight the aspect
 Bargaining power of suppliers
a.) Good relations
b.) Help supplier to reduce the expenses
c.) bargaining of prices

PORTER FIVE FORCES
 Bargaining power of customers
a) Performance of the organization
b) Programs related to programs
c) Buyers can switch the product
d) Switching cost is low
 Competitive rivalry
a.) High competition
b.) Kraft foods and Groupe danone
c.) marketing is important of the product
d.) large market share

PUSH AND PULL STRATEGY
 Push strategy
a.) distribution channel
b.) Sales force
c.) point of sale
d.) good packaging design

PUSH AND PULL STRATEGY
Pull strategy
a.) High spending
b.) advertisement
c.) Customer demand
d.) Word of mouth
e.) customer relations

SWOT ANALYSIS
 Strength
a.) One of the top brands
b.) range of products
c.) corporate social responsibility
 Weakness
a.) Quality
b.) Negative publicity
c.) advertising cost is high

SWOT ANALYSIS
 Opportunities
a.) Research and development should be considered.
b.) demand of healthy products enhances .
 Threats
a.) raw material price enhances
b.) food contamination
c.) home grown brand

REFERENCES
 Ronfard, P. (2014). Successful Product Launch: Combining
Industrial Technologies with Adapted Health
Ingredients. Food Oligosaccharides: Production, Analysis and
Bioactivity, 492-522.
 Sheth, J. N., & Sisodia, R. S. (2015). Does marketing need
reform?: Fresh perspectives on the future. Routledge.