IMD-5-0718 © 2008
Kashani, Kamran; Sjöblom, Susan
Part of a case series on advertising innovation, the Nestle Vera is about Nestle Waters in Italy turned around a declining mineral water business through rebranding and innovation in pricing. The brand’s pricing strategy was altered by the marketing team from frequent marking down to an “everyday low price” policy. This led to opposition from within and outside the firm. Headquarters management had to be convinced about proposed investments in a business that is losing and, at precisely the same time, retailers and distributors had to agree with the new pricing strategy which was seen as competing with their private labels.
Nestlé Vera “Everyday Right Price – Always” Case Study Solution
Neither task was not difficult. The case describes its flexibility to attain their objectives against the odds together with the brand team’s resoluteness. The learning objectives: This case study can be utilized to 1) illustrate innovation in pricing strategy; 2) illustrate the reversion of a diminishing brand; 3) reveal the role and power of retail chains in FMCG marketing; 3) develop an appreciation for the complexity of executing a new marketing strategy. The case can be used alone or with one or more of the other instances in the chain on marketing innovation.
Subjects: Pricing strategy; Consumer price promotion; Brand rejuvenation; Retail distribution; FMCG marketing; Marketing plan implementation
Settings: Italy; Mineral water; Nestlé Waters 2007 Sales: CHF 10.4 bn; Employees: 33,500; 2004-2008
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