Power User -- December 2006
When Henri Nestle got his first boxes of infant formula ready for sale, he put his address on the packages so people would know where to go if they had questions. Nestle USA is continuing this tradition, winning the "Power User" award for its creation of the "Nestle Consumer Relationship Marketing Program."
LIMITED UNDERSTANDING
Nestle USA is a part of Nestle SA, one of the largest consumer foods companies in the world. Headquartered in Glendale, Ca., Nestle USA manufactures and distributes consumer food products in many categories, including: Beverages (Juicy Juice), confections (Nestle Butterfinger, Nestle Crunch), prepared foods (Stouffer's, Lean Cuisine), nutrition products (PowerBar, Nestle Good Start infant formula) and pet food products (Purina, Friskies).
Nestle USA is a part of Nestle SA, one of the largest consumer foods companies in the world. Headquartered in Glendale, Ca., Nestle USA manufactures and distributes consumer food products in many categories, including: Beverages (Juicy Juice), confections (Nestle Butterfinger, Nestle Crunch), prepared foods (Stouffer's, Lean Cuisine), nutrition products (PowerBar, Nestle Good Start infant formula) and pet food products (Purina, Friskies).
Nestle USA had strong business relationships with its retail customers, but limited understanding of diverse wants and needs of end-consumers. To address this issue the company created the "Nestle Consumer Relationship Marketing Program" (NCRM), in conjunction with Epiphany and Deloitte. The program established an enterprise multi-channel consumer marketing capability through which to distribute targeted product offers, loyalty-based promotions and product information recipe ideas and more, in order to develop meaningful relationships with consumers to increase loyalty, enhance product/brand affinity and ultimately increase revenue and profitable growth.
"At Nestle USA one of our primary visions is to expand the depth and breadth of the NCRM platform to more fully understand and maximize the engagement and relationship between Nestle and its consumers. NCRM has and will continue to revolutionize the way we gather and understand data, segment, market and ultimately communicate and do business with our consumers," says Simon Spaulding, database marketing manager, Nestle.
INITIATIVE LAUNCHED
Nestle USA selected Deloitte Consulting as its business partner to design and provide this platform to deliver targeted campaigns and communications across direct mail, e-mail, Web site and call center channels. By launching the NCRM Program, Nestle USA has realized business results such as:
Nestle USA selected Deloitte Consulting as its business partner to design and provide this platform to deliver targeted campaigns and communications across direct mail, e-mail, Web site and call center channels. By launching the NCRM Program, Nestle USA has realized business results such as:
- 455 percent increase in the total number of registered consumers
- 59 percent increase in the total number of direct mail permissions
- 52 percent increase in the total number of email permissions
- 160 percent increase in the total number of suppliers supported
- 15 percent increase in the total number of brands supported
Key to success included cross-company executive level support to ensure the successful design and adoption as an essential enterprise consumer marketing capability. Also critical:
- The ownership by business stakeholders to drive the program
- Comprehensive, accurate and current consumer data - Significant attention was paid to ensuring the highest quality data possible and based on certain industry benchmarks, the company possesses some of the highest consumer quality data in the industry
- Comprehensive, accurate and current consumer data - Significant attention was paid to ensuring the highest quality data possible and based on certain industry benchmarks, the company possesses some of the highest consumer quality data in the industry
The company also mentions that a sustainable operations module was necessary to sustain and enhance the solution going forward.
While Nestle USA continues to explore expansion opportunities to other Nestle USA divisions, it is also exploring strategic opportunities to better leverage NCRM with trade promotion and retail execution.
OUTSTANDING ACHIEVEMENT AWARDS
Pinnacle Foods
Pinnacle Foods is a manufacturer and marketer of frozen, dry grocery and shelf-stable foods with brands such as Aunt Jemima, Duncan Hines and Swanson. The company -- a 1998 spin off of Campbell Soup Company -- managed its systems and operations using Excel templates and an Access database to capture sales. When Pinnacle completed the acquisition of Aurora Foods in April 2004 it realized its growth warranted an advanced trade management solution that incorporated the business planning cycle into one tool, combining sales forecasting/ planning, deduction management, and trade analysis. The new TPM process was successfully created through internal strategic planning and implementation of a TPM solution powered by MEI. With this technology Pinnacle now has complete control over trade-spend.
Pinnacle Foods is a manufacturer and marketer of frozen, dry grocery and shelf-stable foods with brands such as Aunt Jemima, Duncan Hines and Swanson. The company -- a 1998 spin off of Campbell Soup Company -- managed its systems and operations using Excel templates and an Access database to capture sales. When Pinnacle completed the acquisition of Aurora Foods in April 2004 it realized its growth warranted an advanced trade management solution that incorporated the business planning cycle into one tool, combining sales forecasting/ planning, deduction management, and trade analysis. The new TPM process was successfully created through internal strategic planning and implementation of a TPM solution powered by MEI. With this technology Pinnacle now has complete control over trade-spend.
Colgate- Palmolive
To respond more quickly and cost-effectively to new opportunities, Colgate- Palmolive needed to grow its service offerings without a corresponding escalation in IT infrastructure and costs. It needed to leverage and invest in the latest advanced automation technologies capable of adapting to new requirements quickly while keeping costs under control. The company recognized innovation as key to gaining competitive advantage and using SAP and IBM technologies, Colgate Palmolive optimized its IT environment; created responsive infrastructure that is easier and less expensive to manage, upgrade and run. IT operational cost was reduced by 10 percent annually despite a higher workload. Overall improvements were made in IT asset utilization, efficiency and productivity.
To respond more quickly and cost-effectively to new opportunities, Colgate- Palmolive needed to grow its service offerings without a corresponding escalation in IT infrastructure and costs. It needed to leverage and invest in the latest advanced automation technologies capable of adapting to new requirements quickly while keeping costs under control. The company recognized innovation as key to gaining competitive advantage and using SAP and IBM technologies, Colgate Palmolive optimized its IT environment; created responsive infrastructure that is easier and less expensive to manage, upgrade and run. IT operational cost was reduced by 10 percent annually despite a higher workload. Overall improvements were made in IT asset utilization, efficiency and productivity.
CG