Student ID Student Name
16-0312 Ethar Majid Albloshi
16-0203 Raya Yahya Alkharusi
16-0353 Fatma Said AlRiyami
16-0445 Manar al aamri
16-0208 Tasneem ibrahim Aljabri
16-0319 Mohammed Alfazari
Date submitted: May 13.2018
Nestle company is one of the biggest companies in manufacturing different types of products. It is located in Switzerland and It has more than 2000 brands and it presents 189 countries all around the world. It established in 1866 by brothers Charles Page and George Page and Henri Nestlé. The company has a primary listing on the SIX Swiss Exchange it is a component of the Swiss market index also it has a seconder listing on Euronext.Nestlé has 447 factories and 333,000 employees in 194 countries around the world. There are 29 Nestlé brands that The company produces bottled water, baby food, coffee and tea, breakfast cereals, ice cream, snacks, pet food, sweets, dairy products, frozen foods and many other things. Some of these brands are Maggie, Vittel, Nescue, Smarties, Nescafé, Nespresso, Stouffer’s Frozen Food Products and Kat Kat’s Chocolate. The company is also a major contributor to L’Oréal cosmetics.
Product review: frozen veggie burgers are quick and fast to make also we focus on great quality, freshness and choice you’d find in store. this product especially made for vegans because they always struggle to find options and sometimes does not taste good so we make sure about everything in this product starting from the taste to the quality of the ingredients.The ingredients are roasted peppers, carrots, brown rice ,peas, and onions, we can add corns and any kind of chili. there are four different types of this product which are Italian, Asian and Mexican. The difference between them is the flavor for example Italian are made with oregano and basil, Mexican are made with chills and spices and finally Asian burgers are made with soya sauce and a sweet flavor.
“As the idea of veggie burger entered the market in a strong flow millions of American companies started to apply this kind of product, also they began to add more ideas to make their product so unique comparing it to others even Burger king tried to make benefit from this idea and put the veggie burger to their menu. And since this idea has been declared all health conscious, athletes and mostly vegetarian search for this product among all burger restaurants which has increased the demand for it and companies trying to fulfil this demand with their own touch. Companies like Kellog presents an official brand for this kind of product not even that they mix other cultural touch to cover all peoples taste and attract attention.
At one-point Engine 2’s Pinto Habanero Plant Burger was the fourth famous veggie burger brand, behind beyond meet’s beyond burger, verger co.’s auburger and morning star farm’s veggie patty. After the shocking success of the veggie burger lots of companies made a limited-edition idea and included the veggie burger to their menu but not every corporation did the success like the companies that are already mentioned. But the thing that not everyone knows that 31% of veggie burgers demand has increased in lots of brands and 90% of sales have rose dramatically last year in comparison with the ordinary burger, and many industry insiders predict that sales will stay going up in the upcoming days.
The fragmentation of this category is combined with the domination that been made by the market leaders this domination has created a competitive environment. Although there is another indirect competition and been posed by all types of burgers also the other type of fast food (sausages, negates, bacon and other types of fast food), this competitive analysis is built on direct competition from managing veggie burger brands. Veggie burger brands are known with zero cholesterol, full of healthy ingredients which gives the body a good power element and low-calorie food with a low total fat.
Prices for this kind of a product is nearly the same in all brands and varies by the type of retails, maybe it costs more than the one in the grocery stores. The price of the one veggie burger could be a 1$ or 1.5$ more than the ordinary burger, some brands offer more adding in the burger which is been measured in the total cost of the product, but they really focused on keeping the main idea of the product and not to lose it.
Veggie Patty: was created firstly in 1999 by a company called Worthington foods the Kellog Co. purchased the company for 307 million and named it with Morning Star farms brand. This burger was scored 4.5 out of 5 in lots of sites and it has given the best veggie burger among all. Veggie patty is sold in zero cholesterol versions. With 170 calories and it has lots of ingredients total fat is 9g, saturated 1g, polyunsaturated 4g, monounsaturated 4g, trans 0g, sodium 360 mg, potassium 160 mg, total crabs 4 g, dietary fiber 2 g, zero sugar, protein 17g. According to the vitamins they are totally zero, with 2% of calcium and 8% iron. By this good ingredient the brand has got lots of response by the target segments and others.
The auburger: was created by a company called the vurger co. in England and wales. In 2017 they launched a crowdcube.com equity crowdfunding campaign to help them launch their first restaurant which was a huge success. They reached £300k in 77 hours. Their burger was scored 4.7 out of 5 and it has a very good review. All Of their Burgers Are Made From 100% Vegetables, Seeds, Nuts, Grains and Legumes.
The beyond burger: was created by a company called beyond meet in 2009. It is made from plants and 100% vegan and it has no soy, no gluten and GMO free. It was scored 4.6 out of 5. It has 290 calories per serving and it has lots of Nutrition such as Saturated Fat 5g, Trans Fat 0g, total fat 22g, Sodium 450mg, Total Carbohydrate 6g, Dietary Fiber 3g, Sugars 0g, Protein 20g, Vitamin C 54mg, Calcium 20mg, Iron 4.5mg. their burger are made of Pea protein isolate, expeller pressed canola oil, refined coconut oil, water, yeast extract, maltodextrin, natural flavors, gum arabic, sunflower oil, salt, succinic acid, acetic acid, non-gmo modified food starch, cellulose from bamboo, methylcellulose, potato starch, beet juice extract (for color), ascorbic acid (to maintain color), annatto extract (for color), citrus fruit extract (to maintain quality), vegetable glycerin.
Pinto Habanero Plant Burger: was created by a company called ENGINE 2. It is a frozen veggie burger and it has no gluten, no cholesterol and no saturated fat. The ingredients is (pinto beans, coriander, sea salt, garlic, collard greens, black pepper, caramelized onion, serrano chili pepper, arbol chili pepper, corn, black chia seed, roasted red pepper, habanero chili pepper, brown rice, cilantro, chipotle chili pepper, cumin, ancho chili pepper).it has 100 calorie per serving the Nutrition of this burger is total fat 1g, Cholesterol 0g, Sodium 100mg, Total Carbohydrate 19g, Dietary Fiber 5g, Sugars 0g, no added sugars, Protein 4g, Vitamin A 400IU, Vitamin C 0mg, Calcium 40mg, iron 0.72mg. by this healthy ingredients the brand have got lots of good reviews and rating.
weaknesses, strengths, threats and opportunities elements that are important to the product. Then match the results to develop a strategic plan.
-Poor inventory management
-only for vegans
-Not many similar products in the market.
-Offer high quality and healthier product.
-Has lower price compared to the others in the vegetarian food industry.
-Increase in price of raw materials Opportunities
-Growing number of vegetarians.
-Changing consumers eating behaviour into healthier food.
-A wide range of advertisement opportunities from external parties.
1-Not many similar products in the market: when it comes to vegan market, there isn’t much junk food or frozen food, so nestle is offering the same experience for vegans.
2-Offer high quality and healthier product: the main focus is the quality because it’s the most important thing in any product to keep it in the market so they use high raw materials and that’s what nestle is known about. However, it’s healthier because are created with a variety of ingredients including, but not limited to soybeans, rice, whole wheat, black beans, corn, lentils, mushrooms, carrots, and zucchini. and all these ingredients are healthier than the ingredients in any normal frozen burgers.
3-low price: this product has lower price compared to the others in the vegan food industry and they make sure that everyone can buy it.
1-Growing number of vegans: people nowadays want a healthier version of fast food, the vegan movement is bigger than ever, everyone is supporting this movement and it’ll continue to grow. According to some resarch by Grub Hub, people chose vegan food 19% more than the normal food in the first half of 2016 to this day.
2-Changing consumers eating behavior into healthier food: nowadays people want to konw what they eat and what inside their food. Also they becoming more aware of the healthy food.
3-A wide range of advertisement opportunities from external parties: for example vegan books, vegan YouTube channels and vegan blogs to help sales. Also many famous people are vegan too like Beyoncé, Ellie Goulding, Miley Cyrus, Ariana Grande and Jennifer Lopez they have a big voice and people actually listen to them.
1-Limited budget: one of the biggest challenges for the company is how raw materials are expensive. The ingredients are purchased from different suppliers around the world and then processed in the company. When the grains and vegetables arrive at the plant, they are examined for quality. the whole process takes more time than any product which means more money and it’s hard to balance between the low price of the product and the expensive materials.
2-Poor inventory management: the storages are different than the normal frozen burgers because of the organic materials, as we know it should be saved in a good place in a specific conditions so that will cost you a lot. Also large volumes of inventory don’t just lead to more management headaches, they can cut into your profits as well
3-Only for vegans: this product is only made for one specific segment. Vegans in the middle east are less than any other places so this product will struggle in the market.
1-Price war: there will be a high rate of competition as the product at organic food stores and other large supermarkets. first one competitor will lower his price then others will lower their prices as well to match and it will be a new round if one lower his price. this war is good for the customer so can buy the product in a lower price but it’s not good for the companies because the lower price will affect the profit margins and can threaten their business.
2-Increase in price of raw materials: economic conditions in the country of origin is one of the biggest reasons and usually the longer the chain, the higher the product costs will be. This increase will affect the product and it must be considered.
Channels and logistics:
Nestle as a worldwide company it has their own distributors network outfitted with all necessary transportation facilities in all countries to which their products are exported. As a first step the company will send the product to the carriage and forwarding sellers of the enterprise from its manufacturing unit to the important regional sales offices, which are located at different cities of the world. The distributors are considering as a responsible of control the availability of merchandise in their areas. And these sales places of work have their very own vehicles with salespeople who sell and transport goods to the small retailers.
objective and issues:
The goals of Nestle company are to be a better company of wellness , health and nutrition.*First-year objectivesIn the first year of product release the number of buyers will be much lower than the coming years . The number of purchases reached 40 million dollars.*Second-year objectives In the second year of product issuance, the number of sales increased to $ 80 million, which is doubled*Issues*One of the greatest problems we will face is there are not many vegetarians People around the world .It will attract only healthy people and the few vegetarians at first sight, but we tried our best to make delicious and healthy meal at the same time . So, it will be liked by most people.
market strategy is one of the important things to success. Starting from market segmentation, it breaks down your target market into small, more manageable segments. Market segmentation enables Nestle to better serve consumers by identifying the product they offer to the market to different customer sets.
Nestle will be focusing on the vegan lifestyle and their interests, they try to understand that and put into the product so the customer will be satisfied and that’s called psychographics segmentation. Another one is behavioral which means the product can serve in different ways and also there are many types of this product and it’ll be for all tastes. Finally, vegans are looking for the quality and that’s what this product is features about.
Vegetarian burger is going to be placed on an “Stay healthy” value proposition. This will give the brand a special touch by looking on the features of the product (eat the healthiest ingredients away from ordinary content), lots of advantages (eat and have lots of nutritional advantages), and values (focus more on health and how to maintain it). Marketing will look at taking the burger to a higher level that will give an idea that it is not just a burger: it will make the customers feel that they are not wasting their money at all.
Vegetarian burger is going to be available on the market with the same features which is already been described. The product will be sold in the retail markets which will make it available for all. As it is mentioned before the burger will be sold in different versions and flavors such as Mexican, Italian and Asian but not forgetting to maintain the main idea. The brand will be build and going to use the experience from the former products to lead this product to success.
Every brand puts their prices based on features and type of selling the product, for this reason vegetarian burger will enter this competition and will use the pricing strategy. Nestle should be careful while choosing the accurate price, this kind of burgers are being sold normally $3.5 in regular retail stores but in many diet centers it is sold for $4. Because vegetarian burger will target to sell this product in different places, this will allow Nestle to set various prices in every place like in grocery chains the price will be $3.4, in retail stores will be $3.6 and in diet centers is going to be $3.89. So we will depend on making a suitable price for the targeting customers.
Vegetarian burger is really focusing in the distribution strategy and they are trying to employ many of best distributors among all, so they can hold the channel perfectly by making sure that the product will be delivered in every region at the right time, right place and right quantity. Also, they are going to make lots of main suppliers who will be contacting with the intermediaries to maintain the flow of the channel and fulfill their target. Nestle logo should be placed on the product so the power of company’s name and reputation be used in this strategy. To be sure that the product will reach to the segmented target the company will contact with some famous diet, fitness and healthy natural stores or centers so we can expand our product everywhere and place the idea in customer’s mind by that the brand will be successfully distributed.
In order to stay in line with our various promotions and our rigorous research, which will attract effectively to customers. Our company will look at online customer opinion. In this way, the company will know customer estimation of the product and general satisfaction. For the future development of the product, we will create other manners in order to be in line with all generations.
Vegetarian Burger will be introduced in the beginning of next year 112019.the following are summaries of action programs that will be used during the first four months of the year to achieve the stated objectives.
January: The company’s first steps in promoting and advertising the Vegetarian Burger is to send professional staff to all Nestlé branches around the world to introduce and educate about the commercial promotion campaign and the benefits of this product to retailers and distributors, as well as provide guidance on how to display and distribute the product on the market. The company will sign agreements with large channels such as MBC Groups to create TV commercials for the product.
February: When the product distribution process is completed on the market, then the advertising regulations for the Vegetarian Burger are put in the streets and shop fronts. The TV advertising campaigns are also launched on the MBC satellite channels, with representatives and celebrities having a great influence on the choices of people from products and also in the social networking accounts of the company such as Twitter account and Instagram, as well as dealing with the celebrities of these programs to promote the Vegetarian Burger by identifying the benefits and components in their personal accounts.
March: To further promote this product Nestlé will deal with large restaurants such as McDonald’s to provide vegetarian burgers as a main meal in the restaurant’s menu and the restaurant will advertise this meal and its benefits by setting McDonald’s advertising regulations. One of the steps taken is to offer competitions to increase the sales of the meal and the product of vegetable burgers, so that the prizes are free coupons to get the meal or get the product.
April: This month, a mobile SMS campaign will be activated, which will be an additional support. This will be done by dealing with the telecommunications companies to announce the competitions and the product.
in the first year, we planned and aim to become a selling price of $25,000 with an average expected retail price of $3.4 per unit for a total of 7353 unit sold .With an average wholesale price of $3 per unit , this provides revenues of $2205 , a variable cost per unit of 4 cents ,and the fixed cost os $10,000 .So, the break-even calculation will be:10,000/ (3*0.4) = 8333.333
We plan to make officials strictly monitor product quality and conditions in terms of price, customer acceptance, brand awareness and adherence to plans. Administrators will be able to monitor all of this through monthly product sales records. This will enable the company to act and rectify quickly in the event of any problems and resort to an emergency plans.
*Taylor, K. (2018). Why Wendy’s and McDonald’s Still Don’t Have Veggie Burgers. https://www.entrepreneur.com / Accessed 13 May 2018.
*The Vurger Co. (2018). Welcome. http://www.thevurgerco.com /Accessed 13 May 2018.
*Beyondmeat.com. (2018). The Beyond Burger® | The Beyond Burger® | Beyond Meat – The Future of Protein. http://beyondmeat.com/products/view/beyond-burger /Accessed 13 May 2018.
*Fooducate.com. (2018). Lose weight & improve your health with a real food diet | Fooducate. https://www.fooducate.com/app#!page=product HYPERLINK “https://www.fooducate.com/app#!page=product&id=57C37BB7-176D-6211-4795-B4ED710DD3C8″& HYPERLINK “https://www.fooducate.com/app#!page=product&id=57C37BB7-176D-6211-4795-B4ED710DD3C8″id=57C37BB7-176D-6211-4795-B4ED710DD3C8 /Accessed 13 May 2018.
*Fooducate.com. (2018). Lose weight & improve your health with a real food diet | Fooducate.https://www.fooducate.com/app#!page=product HYPERLINK “https://www.fooducate.com/app#!page=product&id=57C37BB7-176D-6211-4795-B4ED710DD3C8″& HYPERLINK “https://www.fooducate.com/app#!page=product&id=57C37BB7-176D-6211-4795-B4ED710DD3C8″id=57C37BB7-176D-6211-4795-B4ED710DD3C8 /Accessed 13 May 2018.
*Fooducate.com. (2018). Lose weight & improve your health with a real food diet | Fooducate. https://www.fooducate.com/app#!page=product HYPERLINK “https://www.fooducate.com/app#!page=product&id=55F0BECA-EEC1-D971-45BC-9C4E8146C41C”& HYPERLINK “https://www.fooducate.com/app#!page=product&id=55F0BECA-EEC1-D971-45BC-9C4E8146C41C”id=55F0BECA-EEC1-D971-45BC-9C4E8146C41C Accessed 13 May 2018.
The company nestle which established in 1866 and has a major contributor to L’Oréal has produced so many kind of food except vegan burgers so they need to add it to their products list. This burger takes short time to be made with different flavors and it’s suitable for vegetarians and non-vegetarians, this product helps vegans especially because they always struggle to find options. It’s healthy, high quality and there are not many similar products in the market.