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**Ice-Cream Marketing Battle: Unilever vs. Nestle Case Study**

This case study compares Unilever and Nestle's marketing strategies in the impulse ice-cream category. Unilever faces marketing problems due to changing consumer behavior, while Nestle focuses on innovation and new product ranges.

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**Ice-Cream Marketing Battle: Unilever vs. Nestle Case Study**

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  1. A Tale of Two Marketing CampaignsUnilever vs Nestle Case Study

  2. Unilever “impulse” (or stick) ice-cream category Accounts 22 percent of total sales Recorded sluggish growth of 2 percent over the past year Marketing problems

  3. Consumer behaviour • Unilever’s insight on consumer behaviour • People have a dual desire to treat themselves more nutritionally and treat themselves more indulgently

  4. Marketing performance • Whenever Unilever push premium indulgence products or push health and nutrition, they get a tremendous reaction in the marketplace

  5. Ice-cream market • $1.8 billion market • Nestle’s Peters division and Unilever’s Streets division accounts for about 50 percent of the market • Market grew about 3.5 percent over the past year, up slightly from its average annual growth rate of about 2.5 percent over the past five years

  6. Ice-cream market • People switching to healthier products • Fall in milk production because of the drought • Healthier ice-cream products getting popular

  7. Unilever’s marketing objectives • Boost the company’s share of the “impulse” (or stick) ice-cream category (Cornetto, Drumstick, Paddle Pop, Heart etc) • Boost sales of multi-pack versions of the four brands • Take on Nestle’s Drumstick brand, which has 70 percent of sales

  8. Unilever’s marketing objectives • Revive sales of Paddle Pop, which fell in a hole two years ago when Unilever slashed its fat content and tried to promote it on a health platform

  9. Unilever’s strategy • Devoting $25 million to its summer ice-cream marketing budget • Ads pushing new versions of key products such as Magnum, Cornetto, Paddle Pop and Calippo

  10. Unilever’s strategy • Half of its budget spent on the Internet and other non-television media • Shifting money away from traditional media

  11. Unilever’s strategy • At the premium end of the market, Continue to focus on the “indulgence” positioning of Magnum • Introduce new variants and a TV and online ad campaign that offers free “gold class” movie tickets with every product

  12. Unilever’s strategy • For the healthier ice-block brand Calippo, added fruit gelato variants to give the brand a more premium positioning • Revive a new version of the “Lick-a-price” promotion for Paddle Pop after a five-year absence

  13. Unilever’s strategy • In the cone category, changed the formulation of its Cornetto product – adding more nuts and sauce – to take on Nestle’s Drumstick brand, which has 70 percent of sales

  14. Nestle’s marketing strategy • Part of its 2007-08 summer strategy involves bringing in products outside the ice-cream market • For example, it hopes to tap into the booming ice tea market • Ice-cream and confectionery division to work closely together

  15. New products • Iced-tea flavoured frozen water ice product • Kit Kat branded cone product

  16. Unilever Promotions Positioning Innovate products Nestle Add new product ranges Two different strategies

  17. Lesson learned • Unilever • It is perilous to remove the flavour and indulgence qualities of products

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