Nestlé Naturnes Price Policy Analysis
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8/14/2019 NestleNaturnes Pricing
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Nestlé NaturnesPrice Policy Analysis
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Pricing Objectives andPricing Policy
pricing objectiveand
pricing policy
range of pricing
in the retail store
range of competitors
prices
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InternalFactors
ExternalFactorsPricingDecision
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Factors havingan impact on pricing
External factors
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Externalfactors
Externalfactors
• Consumer perception of price/value• Demand elasticity
• Consumer perception of price/value• Demand elasticity
• Industry structure• Competitors’ policies• Retailers’ policies• Substitutes
• Industry structure• Competitors’ policies• Retailers’ policies• Substitutes
• Other environmental factors
• Other environmental factors
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pricing objectives andpricing policy
Finding the perceived value:
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Value Benefits Costs= -
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pricing objectives andpricing policy
BenefitsPrestigious image
Quality: biological productsno use of additives, conservatives,thickener
no additional sugar, salt
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pricing objectives andpricing policy
BenefitsInnovation: new technological procedure (every
ingredient is steamed cooked separately)Innovative packagingSimple/Various recipes
Delicious
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pricing objectives andpricing policy
Buyers perseption of price: image• nestlé biggest nutrition company worldwide
• 100% biological products• good for the environment (25% less CO2
emission than with other products)
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pricing objectives andpricing policy
Buyers perseption of price: personalbenefit
• saving time and energy
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-Easier and faster toprepare a meal:
-The jars are mircrowaveable
-they are also stackable
- the jar is reclosable
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pricing objectives andpricing policy
Buyers perception of price: benefit of service• augmented product:
– consumer service hotline (number on thepackage)
– special web side www.naturnes.com
with chat rooms, information
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pricing objectives andpricing policy
Buyers perception of price: Product‘s benefit• new steamed cooking technology
preserves vitamins, minerals of the food• no additional chemical substances• colors and textures of the food remain natural
• 100% biological ingredient
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Choice
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pricing objectives andpricing policy
Costs
Time costAvailable everywhere: High penetration
Monetary costMiddle range price
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Factors havingan impact on pricing
Industry structure
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1.035 billion €turnover 2007 in thewhole industry
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Factors havingan impact on pricing
Competitors policies
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-Market leader - is the cheapest- but no new inventionslately
-High range of products-Low quality
-Cheap
Retailer brands
-Low-Middleranged price
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Factors havingan impact on pricing
Internal factorsMarketing Objective:
Market Share LeadershipGood quality product to attack BlédinaPrices are not as high as organic products
usually are
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Factors havingan impact on pricing
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Product-40 different dishes- for children from
4 month to 1 year
Distribution- supermarket
(carrefour,intermarché )
Communication-Magazines for parents/
-medical magazines- posters, Internet
-Sales promotion, POP
PriceMiddle price range
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range of pricing in theretail store
pricing objectiveand
pricingpolicy
range of pricing
in the retail store
range of competitors
prices
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range of pricing in theretail store
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Carrefour: 1,45 €
Marché plus: 1,45 €Intermarché: 1,30 €Paradis des prix : 1,44 €
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range of competitorsprices
pricing objectiveand
pricingpolicy
range of pricing
in the retail store
range of competitors
prices
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range of competitors prices
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Demand Elasticity
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• Nearly inelastic for the whole industry•
Elastic for Naturnes
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Factors havingan impact on pricing
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Factors havingan impact on pricing
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Estimation of price elasticity from targetmarket’s buying intentions (in €)
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•Product is common;
•Quality is comparable;
•Substitute is abundant;
•Price is high;
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Factors having
an impact on pricing
P r i c e
s e n s i
t i v e
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