How Nestlé Saved Its Declining Baby Food Category

Nestlé dominated baby food (96%), but the category was shrinking. This case study by Proshanjit Dey explores how Nestle tackled these challenges to revitalise its baby food segment.

The Problem Statement

Nestle's controlled almost the entire market, yet the category was shrinking.

No Effective Competition: Competitors emerged and disappeared without making a significant impact.
Minimal Growth from Tactical Adjustments : Like pricing corrections and packaging reworks.
Over-segmentation: Excessive product segmentation led to ineffective marketing and high customer attrition.
Regulation-induced Media Restrictions: Stricter regulations curtailed mass media advertising, which had been a cornerstone of brand building.
Rise of the Discerning Mother: Mothers became more selective, preferring homemade options over packaged cereals.

Unearthing the Real Problem: Iron Deficiency

Digging deeper into data, a crucial public health issue emerged: iron deficiency plagued a significant portion of children under five. Supplementation, a traditional approach, yielded poor compliance rates. Fortified cereals, a successful solution in Western countries, presented a compelling opportunity.

Using a ‘Fortified Cereals’ as an Opportunity

Nestle focused on the following strategic interventions:

Science-Backed Communication
Nestle redrafted their messaging to highlight the scientific benefits of their products.This shift aimed to educate mothers and healthcare professionals about the crucial role of proper nutrition and iron deficiency in early childhood development. Mass media limitations led to a focus on alternative channels including educational campaigns through various platforms.

Dense Nutrition, Smaller Stomachs
Understanding the limited stomach capacity of young children, the team focused on creating dense, nutrient-rich cereals. This addressed the challenge of providing adequate nutrition without overwhelming little tummies.

Extending the Journey: Upto 24 Months
Another key strategy involved extending product offerings beyond the initial stages. Recognising that children often lapsed out early, a new stage was introduced to cater to their nutritional needs for a full 24 months.

Launch of Ceregrow
This new product extended nutritional benefits beyond 24 months, reinforcing Nestle's commitment to child health.

Proshenjit is the Vice President of Marketing at Aditya Birla Group, for brands like UltraTech Cement and Hindalco Industries Limited.

Jagged with Jasravee is facilitated by Jasravee Kaur Chandra. Jasravee has over 20 years experience as a Strategic Brand Builder, Communications Leader and Entrepreneur.

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