Digital Transformation @ Nestlé

Tom Buday

Senior VP, Marketing and Consumer Communications

Pete Blackshaw

Global Head of Digital & Social Media

September 5, 2013

To be the leading FMCG player in leveraging

digital & social media to build brands & delight consumers

Embracing

Fundamentals

Media

Productivity

Inspiring &

Rapid Scaling

External Focus

& Innovation

OUR AMBITION

1.2 Billion Products sold per day, a

growing % with digital links

50% + of Nespresso

capsules sold online

Some Quick Facts

1,500 + Pieces of content published

in social media daily

200,000 + Employees on internal

social media platform

165 Million + Fans of Nestlé

brands on Facebook

Know Your

Consumer Deeply

Delight with

Product Experience

Innovate

Bigger Bolder Better

Create Engaging

Brand Experiences

Inspire with Brand

Vision and Essence Win with Shoppers

Fundamentals are Fundamental

Our Digital Foundations Draw Directly From BBNW

Brand Building the Nestlé Way House

Message Quality

ROI

Low High

Low

High

2003

2013

Consumer avoidance

and rejection,

powered by technology

Social platforms &

consumer sharing of

brand content, powered

by technology

Message Quality Matters, Now More Than Ever

Driving Media Productivity

Paying Less, Earning More

O

P E

Investment By

P.O.E.M.* O

P E

2011 2014

* Paid, Owned and Earned Media

Impressions that Drive Action

Measuring Earned Impressions Systematically

ROI is to be Understood, not Proven

Incremental

Sales

Now

Incremental

Sales

Later

Bu

sin

es

s R

es

ult

s

Bu

sin

es

s R

es

ult

s

Activity

Execution

1.

Effective Reach

2.

Engagement

1.

Effective Reach

2.

Engagement

3.

Action (Discover, Share, Shop)

No

Incremental

Sales

Understanding Business Impact

Nestlé Fitness Kit Kat

‘‘We Will Find You’’

Bu

sin

es

s R

es

ult

s

Bu

sin

es

s R

es

ult

s

1.

Effective Reach

2. Engagement

3. Action

4. Business

Results

1. Effective Reach

2. Engagement

3. Action

4. Business

Results

Amplifying High Quality Messaging

Nestlé Partnering Directly with Platforms

Payoff From Direct Partnership

External Focus and Innovation

The Silicon Valley Innovation Outpost

Obsessive Focus on Nestlé Strategic Priorities

Inspiring & Rapid Scaling

Scaling the DAT Model Scaling the DAT Model Across the Globe

Rapid Scaling of Knowledge

Brand Building

the Nestlé Way

Digital Acceleration

Team the Nest CHATTER

Thank You and Questions