Product Recommendation: True 10
True10 Segmentation
As previously stated, our segmentation scheme consists of powdered and liquid beverages, milk products and ice cream, prepared dishes and cooking aids, confectionery and PetCare. Since our main focus with True10 is on the younger generation that is seeking to not only make healthier lifestyle decisions, but also contribute to a greater cause - such as charity – we plan on creating a market segment designed to do just that.
True10 Market-Product Focus
We chose to introduce the True10 brand because of the opportunities available in the constantly growing healthy snacks division of the health and nutrition market. This repositioning strategy will set Nestlé up for the future, when customers will be more health-conscious than ever before. We could have invested in our already large confectionary market, however that would only be beneficial in the short-term and it would also have little to no positive impact on brand image.
True10 Target Market
True10 Marketing Mix

Price
For the Price portion of the marketing mix, we will be initially focusing having a sales-oriented approach. Therefore, penetration pricing is the most suitable method to use when launching our True10 brand into the market. Penetration pricing is appropriate because of five main reasons. Firstly, the target market of this new brand is very elastic, due to the vast number of substitutes available for consumers to choose from. Secondly, the products that we will produce will face stiff competition from already well established brands, such as Kellogg’s Special K. Thirdly, penetration pricing can possibly create a barrier of entry that will prevent any new competitors from entering the same market. Fourthly, this pricing method will generate goodwill due to its positive effects on brand image and customer relations. Lastly, it will help us take advantage of economies of scale, since by producing large quantities of product and then offering quantity discounts to retailers in order to encourage volume buying. Additional discounts and stocking allowances will be offered to the retailers in return for favorable positioning inside the stores, as mentioned before in the placement strategy.
Participation
While the strategy of the four P’s that have already