Presentation given by Tom Buday at the Credit Suisse European Media Seminar in London, September 4 2012

1. The Nestlé Approach
to Consumer Engagement
in a Digital World
Tom Buday
Head of Marketing & Consumer Communication
Nestlé S.A.

2. Part of the story
94M 3.7M +100%
Fans of Nestlé Average weekly new Growth in fans of
brands on fans of Nestlé brands Nestlé brands on
Facebook1 on Facebook2 Facebook H1 ‘12 vs.
YAG
16M >50% 43
Views for Contrex of Nespresso Markets using
video on YouTube, capsules sold Nestlé standard
the world’s most online listening tools
shared video in
Oct. ‘11
1Through August 26; not unduplicated
2July 14 – August 26
2

3. Source: Andy Sernovitz, Hugh MacLeod
3

4. Message quality matters most in driving ROBBI1
High
ROBBI1
Low
Low
Message Quality High
1Return on Brand Building Investment
4

5. Missing the Point?
5

6. Our view
• Platforms don’t ‘work’ (or not)
• Brand campaigns and
messages do
6

7. Message quality matters now more than ever
High
Social platforms and
consumer sharing of brand
2012
content, powered by
technology
2002
ROBBI
Consumer avoidance
and rejection,
powered by technology
Low
Low
Message Quality High
7

8. The Nestlé Way
Minimize avoidance and rejection
Maximize impact, sociability and sharing
Do it consistently, at scale
8

9. Maximizing impact - Nestlé TV copy effectiveness
Base: All Nestlé aired ads 2009 (141 ads), 2010 (227), 2011 (151) and YTD June 2012 (59).
Numbers shown are percentage of ads scoring in the top quartile of Ipsos/Millward Brown
database of all tested ads.

10. A large proportion of viral viewing is predictable
based on creative power
130 r = 0.63
120
Views per week (index of Logged)
110
100
90
80
80 90 100 110 120 130
Creative Viral Potential
10 Source: Creative determinants of viral video viewing, Duncan Southgate, Nikki Westoby and Graham Page, Millward Brown,
Published in International Journal of Advertising, July 2010

11. 2012 all advertisers WARC Effie Effectiveness Index

12. 2012 food advertisers WARC Effie Effectiveness Index

13. Scaling impact capability

14. Scaling impact capability
Gerber
Milo
Nescafé
Dolce Gusto
Guigoz
Perrier
Nescafé

15. Maximizing sociability
15 15

16. Scaling sociability
Do’s Don’ts
 Thank Mavens for wonderful,  Overuse cow puns – a few ‘’get moovin’’ references are ok, but stay
positive posts away from referring to my Mavens as a ‘herd’ or any other cow
stuff. (Use these sparingly – less than 5% of the time)
 Acknowledge Mavens by their
first name when responding  Give specifics around where I live or my family. Sometimes Mavens
will want to know what pasture I live in or what my family is like. I
 Sign off using my signature: just respond vaguely with something like – ‘’I couldn’t love my digs
‘’xoxo~Skinny.’’ more’’ or ‘’I <3 my family, thanks for asking.’’
 Initiate or participate in any conversation involving religion, politics
or sexual subjects. Everyone has their own beliefs and I like to stay
neutral.
 Publicly promise a Maven anything. Other Mavens will feel left out
and ask for whatever you’re giving out and it could spiral out of
control. If you want to give a coupon or anything else to a Maven,
do it privately and directly.
 Insult anyone, even jokingly. Avoid using any vulgar or offensive
slang talking.
 Coach or tell my Mavens what to do.
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17. Sociability framework well applied
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18. The benefits of sociability
Impressions ('000) Proportion of Total Impressions
Paid 364,733 65.6%
Owned 167,460 30.1%
Earned 23,723 4.3%
Total 555,916 100.0%
Note: contact points include TV, Facebook, and search. Data are for H1 2012
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19. Sociability in action
• No Paid Media Support
• Reach 85,034
• Engaged users 4,675
• PTAT 3,804
• Success drivers:
imagery, succinct
messaging, timeliness
(St. Patty’s day)

20. Sociability in action
• Paid media support
• Reach 286,636
• Paid 222,821
• Organic 89,614
• Earned 20,137
• Engaged users 7,863
• PTAT 3,827
• Success drivers: effective use
of paid media to increase reach
and engagement. Great image
and copy; simple and to the
point.

21. Skinny Cow – Retail Dollar Sales - US
TOTAL SKINNY COW - US (xAOC+C-Store) Dollar Trends (Millions)
30
25
20
15
10
5
0
4W END 01/28/12 4W END 02/25/12 4W END 03/24/12 4W END 04/21/12 4W END 05/19/12 4W END 06/16/12 4W END 07/14/12 4W END 08/11/12
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Market Definition
US Expanded All Outlets = Food, Drug, Mass (5 retailers), Wal-Mart, Club (2 retailers), Dollar (3 retailers) and DeCA (Military)
Mass = Target+Kmart+Shopko+Pamida+Alco
Club = Sam's+BJs
Dollar = Dollar General+Family Dollar+Fred's Copyright © 2011 The Nielsen Company. Confidential and proprietary.

22. Maximizing sharing

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23. Strong message quality
Copy Effect Total Women 30-49 Women 50-65
Index* Women 30-65 Non-buyers Contrex buyers
Vélo 234 263 261
*CEI = Impact (Visibility/Link to the brand) and Persuasion (Purchase Intent).
Source: Ipsos pre-test
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24. Success with sharing
 16 million views on YouTube, 12 million earned
 #1 video viewed in September in France
 #1 video shared in October worldwide
 In YouTube’s Top 20 most liked and viewed ever
Sources: YouTube (metrics are for entertainment category); Mashable.com – October 2011 (does not
include music videos, user-generated content or movie trailers)
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25. Contrex market share in France
8.0
7.9 7.9 7.9
7.7 7.8 7.7 7.8 7.8
7.2 7.3
6.7
6.4
6.0
P5 P6 P7 P8 P9 P10 P11 P12 P1 P2 P3 P4 P5 CC P5
2011 2012
Source: IRI hypermarkets + supermarkets, volume market share of bottled water

26. We are learning rapidly
BRAND FACEBOOK RESULTS OTHER METRICS
Gerber USA ROI $3.91 for every $1 spent 3.1M Fans
Kit Kat UK ROI £1.31 for every £1 spent 11% of media-driven sales
Nescafé Philippines 10% Rise in Sales 1.25M New Fans
Kit Kat Philippines No. 1 Local Brand Page
Butterfinger USA +6 pt inc brand favorability 90% Fans Reached
Kit Kat Brazil +24-point increase in ad recall 80,600 Fans in 3 days
Baci Perugina 100K New Fans 1.5M Impressions
Nescafé India ~2M Fans in 2 years
Nestlé chocolate 55K Fans +15 incr in brand aware.
Turkey
Infant Nutrition 7,000 Fans in 3 wks 40% engagement rates
Greece
Nescafe Shake it Up 35K new Fans 7.7M Impressions
Note: ROI = sales return on investment

27. The Nestlé Way
Minimize avoidance and rejection
Maximize impact, sociability and sharing
Do it consistently, at scale
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