Nestle Future-forward Digital
What I Heard (WIH) Series - Nestlevel 2022
Starting with this post, Outside In goes deep inside a rich event hosted by Nestle Global earlier this year called Nestlevel 2022 (https://nestlevel.vfairs.com/en/#agenda). To be candid, I had registered for and attended the event with low expectations, but I have stumbled upon a rich trove of Digital Insights and Best Practices; for the future Business as well as Consumer. And, from one the leading Digital Pioneers in the world – Nestle – who is inviting us all to get a flavour of their Digital Transformation Story! With an Outside In lens covering this rich forum in depth, I am tempted to believe that this ‘Nestle Nestlevel’ series of curated articles (I am sure there will be many, as I start compiling my learnings) will possibly be one of the best pieces of 2022 (and possibly of 2023). Let’s jump right in…
A) Context – Witness the Digital Transformation of Nestlé with Nestlevel 2022
The future is NOW, and it is DIGITAL: As businesses grow to become more digitally-evolved, Nestlé is excited to take you on a future-forward experience at Nestlével. Spanning across 3 days, Nestlével brings digital talents and industrial leaders together. One could hear from experts in the areas of digital marketing, sales & eCommerce, supply chain & procurement, automation engineering, data analytics & information technology
B) What Does “Future-forward” Digital Mean for Nestle? Future Forward Nestle means:
Agility
Speed
End-to-end Inter-connectedness
Best-in-class Product Innovation
Serve Consumers in a Better, Faster, Cheaper Way
Sustainability
Be Super Personal & Relevant to Consumers
Better Corporate Citizen
Partner to Suppliers
C) Building the (Nestle) Brand for the Future
Stated Aspiration: Leading Digital Marketing with Consumer Data: 400 Mn FPD by 2025, Build a 1:1 relationship with customer not only for communication & messaging but even to extend personalized Products (as possible), Drive the future of FMCG Industry and articulate the role of Nestle – Driver & Enabler for Innovation
The biggest game changers in Marketing today are: Rise of Platforms, Big Digital Companies (Meta, Google, Tiktok), Mobile Technologies-led Marketing
The Questions to answer for building successful Brands in future are:
What is our Brand Equity?
What role does Brand play in a consumers life?
What is the right Product? What is the right Innovation? Brands must address Product Innovation as well as ways of doing Marketing
How do we continue to Evolve, along with consumer evolution?
Nestle Strategic Priorities to drive growth through Digital (and driving this across all their 10 Key Categories): Ecosystems, to go beyond the Product – Introduce Services (like, Recipes Repository, Nutrition Information) across Categories
Focus Skills: Eagerness to Learn, New Ways of Doing Things, Team Player, Energy, Write the Roadmap, Creative Partnerships
Culture for driving Digital Creativity: They have cultivated a specific onboarding process – Brand Building the Nestle Way. It covers all aspects of Marketing and Sales, Integrates the shopper in this Process, Provides Digital Tools Enablement for L&D and Pushes one to Up-skill Constantly – along with Partners, like Google, FB, Tiktok, Etc. – *make the Outside come In* (Outside In Tick)
D) Scope of Nestle Digital Transformation Covers:
1) Leadership in Digital at Nestle
External View: Sustainability, Climate Change
Internal View: Make Work Enjoyable for People, Be Inclusive, Stretch Capabilities, Learn from Digital Transformation, Reverse Mentorship
2) Unique Digital Transformation Journey at Nestle – 370K+ people across 186 Countries
End-to-end Infrastructure across Value Chain
Data-driven Innovation
Brand Building
Consumer Operations
Channels
HR
Procurement
IT
Analytical Skills Development
Agility @ Scale
Strong Service Capability Mindset
Innovation in Ecosystem – with Incubators – Nutrition-focused and Health & Wellness Agenda
Build Value for Consumers, via Ecosystem Play
E) Indonesia Illustration: Building Future-Skills
1) Be Creative and Data Driven – Creative is the dominant driver across all media Platforms. A good digital creative is driven by a Dynamic Content Optimization (DCO) Process
Understand who, how and why consumers respond improves the entire Ad creation process – Leslie Woods, NCSolutions Chief Research Officer
a) Creative Variations are then mapped against Audience Strategy
b) Leading to Award Winning DCO Outcomes…
c) Use Platform Insights – YouTube
A – Attention – Hook and sustain attention with an Immersive Story
B – Branding – Brand Early, Often and Richly
C – Connection – Help people think or feel Something
D – (Direct) Action – Ask them to take Action
d) Track Creative Quality Score (CQS), with Technology, to measure ROI
e) Which Leads to Higher Ad Recall…
2) Be Analytical – Navigate and Optimize Media Plans
a) Identify Audiences: Provide a path from Target Consumer to Audiences – Target based on Attitudes and Behaviours to Consumers based on real Data Signals
b) Pursue Programmatic Advertising:
c) Maintain Brand Safety and Suitability: Avoid Unsafe Content (that is against Nestle’s Values), Maintain a positive Reputation across all Brands
d) Track Ad Viewability Standards: Display – 100% of pixels in view for 1 second by humans, Video – 100% of pixels in view for 3 seconds by humans
e) Follow the Nestle Search 2.0 Framework
f) Cultivate Consumer Data from various Sources and Solutions for Test & Learn: Build 1st, 2nd and 3rd Party Data – and prepare for a Cookie-less World in 202X
3) Be Curious…and Tiktok – Changes and New Trends happen every day in the Digital world and how people use various Platforms is also changing fast. There’s a need to adapt, learn and try…
Again and again…
F) Thailand Illustration: Nestle Digital & E-Commerce Landscape, with Social Commerce
Thailand is a huge Social Commerce Market – which happens informally. Nestle is working on making Social as a huge channel for E-Commerce – in an authentic way and “At Scale”. By 2025, Nestle will be generating around 25% of their Sales via E-Commerce
Strong Points: World-renowned Brand, High-level Followers, Wide range of Products
Commerce Challenge:
Drive Indirect Sales through 3rd Party Marketplaces
Drive more Organic Engagement through Facebook Page
Tracking Sales and Click-through to 3rd Party Marketplaces
No direct Sales Channel or own Website to sell through
Enter ‘Shop at Nestle’ Facebook Page
The Shop At Nestle Facebook page is a platform where Nestle promotes its products to consumers where the users can buy the products on platforms like Lazada and Shopee (whom they call LMDI = Last Mile Delivery Intermediaries)
Research and Strategy, for an ideal posting schedule for higher Engagement
Target Audience Analysis and Hyper-segmented Audiences with a high degree of Interaction
Upload and update all Products to the Facebook Store through the Facebook Catalog and setting up CPAs for Tracking Purposes
A/B Testing of Designs and Copy, to identify types of content & designs with higher Engagement
In Conclusion
Digital is at the core of Everything. Their outlook at building their Organization and the Professional careers along with it is an evolutionary one: Everyday is a School Day, Follow the Growth, Make Connections and Ask for Help
References & Sources:
1) My Notes from the Nestle Nestlevel 2022 Event: https://nestlevel.vfairs.com/en/#agenda
2) Nestle Thailand Social Commerce Illustration: https://hy-digital.com/en/portfolio/nestle