Nestles Partner Blend

Fairtrade

Table of Contents

Problem Statement 4

Alternatives 4

Analysis of Alternatives 4

Recommendation and Action Plan 6

Recommendations 6

Action Plan 7

References 9

Appendix 10

Matrix 10

Executive Summary

Nestle is in dilemma on whether or not they should partner with the Fairtrade logo. This would mean their Partners' Blend line, the new instant coffee will be offered in the growing UK 'ethical' coffee segment. The logo of the Fairtrade means that Nestle must go against its known position of not offering minimum guaranteed prices to coffee farmers instead they offer market value. Nestle has asked us to look into the situation and make a recommendation. Within this report you will see four sets of alternatives that we feel are your choices.

We feel that Nestle can either accept the Fairtrade label while foregoing the Nestle initiative. You

Can choose to launch your own “ethical” label and not partner with Fairtrade at all and follow your own initiatives. By doing so, they would not have to pay or deal with the Fairtrade brand. Your company can accept

Fairtrade as the partner blend and continue with your initiatives. Nestle can also launch their blend without

using a label at all.

Our recommendation is to launch using Nestle’s own “ethical” label. This accommodates the short-term need

from our consumers, and keep our values and long-term strategy in line. Using the Fairtrade label would be the

simplest decision, but unfortunately it doesn’t associate with our initiatives and you would be at the mercy of Fairtrade’s actions in the future. This way you would be able to keep money in your pockets instead of paying Fairtrade and you can keep paying market driven prices. Nestle initiative would still benefit the suppliers, while we invest in the community. Lastly, you would have to come up with a good marketing and sales plan to counter react the low recognition.

We have also included an action plan to help...