1. The document discusses marketing strategies for Nutren Diabetes, a nutritional product for diabetics produced by Nestle, in Ho Chi Minh City, Vietnam. 2. It proposes using a public relations strategy combined with expanding distribution channels to increase recognition of the new product and speed up its introduction to the market in 2011. 3. Specifically, it suggests conducting customer surveys, sponsoring a television health program, and individual sales through pharmacies and milk agencies to help customers learn about, access, and purchase the product.

1. FUNDAMENTAL MARKETING
Lecturer: Ph.D. Frédéric Jallat
Student: Huynh Chau Dang Khoa
Group 3
Project: NUTREN DIABETES

2. 1. THE BEGINNING
Nowadays, along with unreasoned regimen, exercises, and life style … It easily results in fat, obese;
that’s a main reason cause many chronic diseases including diabetes. In addition, there are many
reasons cause diabetes such as the old, women in pregnant process, diabetic in family…
Diabetes is a pathologic need to treat in parallel between 2 factors: reasonable regimen combine with
medicine. Thus, using milk for diabetic in regimen is also cared a lot.
Nestlé is a leader nutritional company all over the world with more than 140 years experience. Nestlé
researched incessantly to bring out nutritional solutions for health of people. One of new products of
Nestlé introduced in Vietnam market is Nutritional product for diabetic NUTREN DIABETES which has
fully done recipe, balance and help to stabilize blood sugar index.
NUTREN DIABETES is a specific nutritional product for diabetic and the best nutritional solution
which was loved all over the world. However, it is new in Vietnam market and hasn’t been known by many
consumers yet. And the aim of this project is research about:
“The marketing strategy of NUTREN DIABETES product of Nestlé to promote and
extend market in Ho Chi Minh City in 2011”.
2. INTRODUCTION
1. Introduce Nestlé Company
Nestlé Company was established by Henri Nestlé in 1867. Nestlé Company is proud of the best food
and beverage all over the world. Unlike other companies, Nestlé Company gives its whole mind to food
and beverage. More than 94% turnover of Nestlé Company comes from food, beverage and nutrition
product, the rest 6% comes from pharmaceutical products.
Nestlé Company and its products appeared in almost countries all over the world many years ago.
The appearance of Nestlé all over the world together with high professional skills and understanding
thoroughly form the Nestlé’s difference which no company can have.
Figure 1: Development phases of product label of Nestlé Company
2. Nutrition for Diabetics
Diabetics need to follow the regimen, exercises and using medicine reasonably, and at the same time
monitoring the disease. If 4 factors combine synchronously, the diabetes will appear slowly.

3. The most important factor in treating diabetes is regimen and using milk for diabetics to replace meals
play the important role. This specific milk has a low blood sugar index, and it helps to stabilize the blood
sugar, whereas other normal milk products have high blood sugar index which not suitable for diabetics.
With population increasing rate about 1.2% / year, GDP growth rate from 6-8% / year , average
income increase day by day… the potentiality to develop milk market at Vietnam is very large. That’s a
reason why milk products for diabetics are diversifying and many kinds. And stand out in the market are
Nutren Diabetes (Nestlé Company), Glucerna (Abbott), Diabetcare (Nutifood) và Dicerna (Vinamilk).
3. Competitive environment in Vietnam
The most famous milk products for diabetics in Ho Chi Minh City are Nutren Diabetes (Nestlé
Company), Glucerna (Abbott) which are 2 types of imported milk of 2 prestige nutrition companies.
4. Marketing strategy of Nutren Diabetes
NUTREN DIABETES joins market late, so target customers are new customers. Thus, strategy target
is not occupying market share but creating the recognition and the prestige of product Nutren Diabetes.
3. SWOT EVALUATION OF NUTREN DIABETES
1. PRODUCT
- NUTREN DIABETES has advantage about attributes as containing whey protein which helps digest
easily and rich cystein.
- Rate: dissolved fibrous matter/ non dissolved fibrous matter = 7:3 aims to extend sugar absorbed
time into blood, maintain and stabilize blood sugar.
- Nestlé is a global company about nutrition-food with more than 140 years of experience which form
prestige to Nutren Diabetes product.
- NUTREN DIABETES is produced at Swiss. The taste, packing, label and product name are stipulated
by Swiss Nestlé.
Thus, strategy about advantage of Nutren Diabetes was not chosen as key target to speed up to join
market. The product advantage will be promoted strongly when products are well-known.
2. PRICE
Up to November 1
st
, 2010, imported milks occupy more than 72% Vietnam milk market.

4. Figure 2: Graph of milk market share of companies in Vietnam Market on October2010
Consequently, price of 4 main products for diabetics in Ho Chi Minh City market as follow:
- Nutren Diabetes: 210.000 VND/ 400g/ box
- Glucerna: 230.000 VND/ 400g/ box
- Diabetcare: 170.000 VND/400g/ box
- Dicerna: 150.000 VND/ 400g/ box
As Nestlé Company is not a leading company about product for diabetics, so price of Nutren Diabetes
is not allowed to be higher than leading product of Abbott Company. And because of imported product, it
cannot be decreased price as price of domestic products.
3. PLACE
Type Action Strengths Weaknesses Results
Health channel hospital, chemist’s + Concentrate to distribute
with filter to hospital and
chemists.
+ Manage goods resources,
delivery time for intermediate
channel (nutrition department,
hospital canteen, chemists)
+ Utilize human resources.
+ Training cost for
intermediate channel.
+ Short distribution
channel hasn’t accessed
directly with target
customers yet.
As Nestlé is a global
company, obey the
law of WHO,
stipulation about
distributing,
consuming
powdered milks,
together with the
target to decrease
cost in order to
stabilize product
price, so the
distribution channel
strategy mainly
concentrate in
supplying goods to
intermediate
customers
Traditional
channel
Milk agency + Employees have thorough
knowledge of product.
+ Products are delivered to
target customers.
+ Expired date is short
whereas products haven’t
been in mind of
customers yet.
+ Haven’t created the
prestige about the
product with intermediate
customers and target
customers yet.
+ Sales promotion is few
and plentiful.
4. PROMOTION
Promotion type Action Strengths Weaknesses Results
Advertising + Network: Nestlé
Company network.
+ Printing: Brochure
product, advertise
Transmit information mainly
to intellectual (health staff)
and based on these
intermediate subjects to
transmit product information
+ Concentrate too much
to intermediate
customers, so target
customers haven’t
recognized the product in
After a period of
time, this strategy
hasn’t brought high
effectiveness yet.
And consumers

5. on medical
magazine.
+ Else: Print product
name on pen, rain
coat, glass …
to customers. the market yet.
+ Due to the budget and
Nestlé Company obey the
law of WHO in advertising
powdered milks so
advertising by network
hasn’t carried out yet.
haven’t known and
understood about
the product as the
planned strategy.
Personal sales sale at milk agency,
patient club
+ Target customers (patients)
recognize the product and the
prestige of company as well.
+ Low expenses.
+ Limited resources.
+ Organize not noisily
and not in large scale.
The intermediate
customers haven’t
pleased about sales
style of company
yet. Target
customers recognize
the product in
limitation.
Stimulate the
consumption
- Target customers:
In patient club: give
promotional gifts
when buying product
as glass, rain coat,
to sample a
product…
- Intermediate
customers:
Encourage sales by
commission, support
promotional gifts as
glass, rain coat.
The promotion actually
comes to customers.
Take promotional cost for
intermediate customers
but haven’t impulse the
consumption as expected
yet.
Only stimulate
intermediate
customers and not
yet pulled the target
customers to buy
product.
Public
Relations
+ Intermediate
customers (health
staff): Sponsor
science conference
of Ho Chi Minh City
endocrine
association, cooking
festival of health
staffs…
+ Target customers
(Patients): patient
club organized by
hospital.
created the relationship with
intermediate customers.
+ Customers buy only
once due to promotion
and the awareness about
product haven’t been in
mind of customers.
+ This strategy doesn’t
bring high effectiveness
and create the direct
competition which
shouldn’t been occurred
when product has just
joined into market.
Take high cost for
PR strategy but
recognize of target
customers about
product is low.

6. 4. SOLUTION SUGGESTION
1. PRODUCT strategy
High quality, be imported from Swiss so the product obey the stipulation of parent company.
Consequently, don’t use product strategy to speed up join into market but support for promotion
strategy to increase the recognition of product in mind of target customers.
2. PRICE strategy
As it is an imported product and is taxed by imported tax and it is not a leading product as well, so
cannot decrease price as domestic products. Thus, we only use price strategy to support promotion
strategy.
3. PLACE strategy
Due to the fact that it obeys the law of WHO about powdered milks, it’s so difficult to approach the
target customers to increase the recognition about product.
4. PROMOTION strategy
Promotion strategy is a strategy to decrease the direct competition factor with the leading product
(Abbott) when the Nutren Diabetes has just joined market. Consequently, we should use the Public
Relations form combined with extend the distribution channel in promotion strategy to speed up the join of
product Nutren Diabetes into market in 2011.
Base on the promotion strategy by PR combined with extend the distribution channel, I suggest some
solutions as follow:
a) Advertising based on marketing research
- Content: Create the survey about: the recognition about Nestlé Company, the products of company
including Nutren Diabetes. Make it short and easy to understand.
- Place to carry out:
+ Cooperate with clubs in hospital; give gifts as pens, raincoats to customers who answer the
survey.
+ Cooperate with chemists, milk agency.
- Time: once 3 months.
- Target:
+ Evaluate the brand name of Nestlé in Ho Chi Minh City market.
+ Evaluate the recognition of customer with the product Nutren Diabetes. Based on that, create the
strategy to increase the join market of product Nutren Diabetes.
b) Create the brand name recognition as a sponsor
- Content: Invite the leading experts about diabetes in the program “Health Care” in television.
- Place: television station
- Time: 7:00 PM– 9:00 PM
- Target:
+ Broadcast image, brand name, prestige of Nestlé Company in area of health care of community.

7. + Transmit information about product, benefits of product to customer as well the safety when
using.
+ Engrave nice image about product in customer’s mind.
c) Combine the extension of distribution channel and individual sales
- Content: Decrease the distance between customer and product via distribution channel.
- Place: individual sales at chemists, milk agency.
- Time: carry out in parallel with 2 solutions above.
- Target: help the customer to recognize, approach the product easier and more favorable. Promote the
customer to try and buy again the product in the next purchasing.
5. CONCLUSION
NUTREN DIABETES which is milk used for diabetics of Nestlé is a new product in Vietnam. It joins
Vietnam market late, so target customers are new comers. It’s so difficult for NUTREN DIABETES to
compete with the leading product of Abott company. Thus, strategy target is not occupying market share
but creating the recognition and the prestige of product Nutren Diabetes.
However, when deploying the marketing, they meet many obstacles result in the target customers haven’t
known well about the product. And they have to change something in the strategy to promote and extend
the market in Ho Chi Minh City in 2011.
Marketing strategy based on PR and support individual sales have benefits about:
1. Micro
- Increase the recognition about product Nutren Diabetes of target customers and potential customers.
- Increase the market share of company.
- Raise the prestige of product – take care of community health as well as increase the prestige of
company in Vietnam market.
2. Macro
- Propagate the knowledge about the diabetes to community.
- Contribute to prevent the diabetes in modern society.
- Contribute to the community the high quality, safe and prestige product of Swiss.