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Case Study

Nestlé Vera: “everyday right price – always”

By Kamran Kashani and Susan Sjöblom

7 pages

October 2008

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Reference: IMD-5-0718

Part of a case series on marketing innovation, the Nestle Vera is about how Nestle Waters in Italy turned around a declining mineral water business through re-branding and innovation in pricing. The marketing team changed the brand’s pricing strategy from frequent discounting to an “everyday low price” policy. This led to resistance from within and outside the company. Headquarters management had to be convinced about projected investments in a losing business and, at the same time, retailers and distributors had to agree with the new pricing strategy which was seen as competing with their private labels. Neither task was easy. The case describes the brand team’s resolve as well as its flexibility to achieve their objectives against the odds.

Learning Objective

This case study can be used to 1) demonstrate innovation in pricing strategy; 2) illustrate the turnaround of a declining brand; 3) show the role and power of retail chains in FMCG marketing; 3) develop an appreciation for the complexity of implementing a new marketing strategy. The case can be used alone or with one or more of the other cases in the series on marketing innovation.

Keywords

Pricing Strategy, Consumer Price Promotion, Brand Reshaping, Retail Distribution, Marketing Plan Implementation, Mineral Water

Settings

Italy
2004-2008

Type

Field Research

Available Languages

English

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