Asl Bayram

Halil Ibrahim Dnmezbilek

ISSUES
Brand image

Establishing strategic alliance with

retailers
Packaging and give-away
TARGET MARKET
Working mothers who have little children

Children are aged 5-15

Mothers are aged 25-45

To make breakfast fun

Middle level of income

VALUE PROPOSITION
Why cereals in the breakfast?
Quick and easy substitude for breakfast

Varied alternatives
Different tastes (Chocolate, Red fruits, Corn Flakes, Grain)
Nutritional Options (Iron, Fibres, Whole Grain)

Accompanied by milk
VALUE PROPOSITION
Why Nesquik?
More delicious alternative

Added nutritional benefits for children

Quality of chocolate (with a years of experience in cacao)

Kids favorite image

To convince them to have breakfast

 MARKETPLACE ANALYSIS
-GENERAL ECONOMC CONDTON-
GDP: $ 718 billions

GDP per capita: 10 971

Unemployment rate: 11.8%

Inflation rate: 10.13% (2 digits; 0.81 increase in

february)

Expected value for 2017 GDP 2.9 %

Growing economy

Fluctuating exchange rates

 SOCIETAL VALUES AND LIFESTYLES
Increase
in the number of working people
(Women contribution to workforce
Increasing in working hours
Turkish breakfast tradition
Westernization
More focused on children
Health concerns
Increasing Social Media and the Internet usage
LEGISLATION -
REGULATIONS
State of Emergency (Declared and Extended)

Geopolitical tensions (Terror, Syria)

Uncertainty

VAT 18%
 DEMOGRAPHIC
Population 78,741,053
Male 50.2% ; Female
49.8%
Urban population 92.1%
Total spending by consumers
0-14 years:25.08% constitutes:
15-24 years:16.11% 70% of GDP in Turkey
25-54 years:43.15% World average 58%
55-64 years:8.36%
65 years and over:7.3%
INDUSTRY ANALYSIS
ANNUAL CEREAL CONSUMPTION
Market size of Turkey: 210,000,000 TL (2011)
PER PERSON IN A YEAR
England: 6.2 kg Greece:2 kg Turkey: 0.235 kg

IN TURKEY
Nestl leads breakfast cereals in 2016 with a
value share of 50%.
Nesquik & Nesfit
DRIVING FORCES
Growing buyer preferences for nutritional options

Increase in educated and employed population

Increase in consumer spending on childrens preferences

2 parents working

Throw-away generation

Fast consumption

Brand conscious
 KEY SUCCESS FACTORS
-Building healthy product image -Innovation

-Marketing and advertising -Capital requirement

-Packaging and give-away -Distribution

channels -High nutritional ingredients -Well-

established brand

-Agricultural products -Strategic

PORTERS
5 FORCES
Threat of New Entry: Medium
Growing industry in Turkey.
Brand loyalty is low.
Requires economies of scale.

Buyer Power: High

Supplier Power: Low Competitive Rivalry: High Retailers like Migros,
Easy access to Powerful players like ada, Gimsa, Real.
ingredients lker, Nestle. Retailers have impact on
They can be available High advertisings. the manufacturer
from a lot of suppliers Variety of products. companies.
Suppliers do not have Dependency on
impact distribution channel.

Threat of Substitutes: High

Low cost switching to
substitutes.
High number of substitutes such
as simit, sandwich, toast.
Low price substitutes.
 PRODUCT LIFE CYCLE
Sale
s Launc Growt Maturit
h h y

Cereals Market in Turkey

Growth stage Nesquik
Increase in fast pace Growth stage
lifestyle
Around 15 competitors
 COMPETITOR ANALYSIS
Nestle
lker
Eti
Dr.Otker
STRATEGIC MAP High
Price

Low Brand High Brand

Recognitio Recognitio
ns ns

Low
Price
COMPETITORS STRENGTHS & WEAKNESSES
LKER COCO POPS

Streng Weakn
ths ess
Low price Weak
Distribution channels advertising
FINANCIAL ANALYSIS
SWOT ANALYSIS
STRENGHTS
Strengths From Where in the Analysis
Brand image Key Success Factors
High quality Key Success Factors
Increasing profit margin Financial Analysis
Design Driving Forces
Variety of taste and ingredients Driving Forces
WEAKNESSES
Weaknesses From Where in the Analysis

Medium brand loyalty Competitors Analysis

Low price substitutes Porters 5 Forces

Consumers perception of Societal Values & Lifestyles

cereal in terms of health
concerns in Turkey
OPPORTUNITIES
Opportunities From Where in the Analysis
Increase in fast pace lifestyle Marketplace Analysis-Societal
Values
Growing Industry Porters 5 Forces
Establishing strategic Key Success Factors
alliance with retailers

Packaging & give-away & Key Success Factors

partnering
THREATS
Threats From Where in the
Analysis
Competitive industry environment Porters 5 Forces

Powerful players Porters 5 Forces

Buyer power is high Porters 5 Forces
Growing Industry Porters 5 Forces
GENERIC STRATEGY
High quality
Low price
 IMPLEMENTATIONS
Brand image

Establishing strategic alliance with retailers

Packaging & give-away & partnering

BRAND IMAGE
Brand image as a key success factor

Although Nesquik has a strong brand recognition;

brand switching is high in cereal market
STRATEGIC ALLIANCE WITH
RETAILERS
Migros
BIM
Carrefoursa

In-store activities
 PACKAGING & GIVE-AWAY
& PARTNERING
Attractive packaging; and also it allows
consumers to contact with the product (Game
under the package, campaigns for some gifts)

Give-Away: Little toys, online game coupons may

work well

Partnering with milk companies (SEK Daily Milk)

THANK YOU FOR YOUR
ATTENTION