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SUBMITTED TO: - SUBMITTED BY:-

PROF. HERSH SHARMA SHAILESH PATEL


INTRODUCTION
Robert B Shapiro chairman & Executive officer.

Simplesse a fat substitute.

Increasing levels of salt & cholesterol in US.

Threat of obesity, heart disease & cancer.

Growth in low calories, low sugar products market.

CCC research 65 % dieted in 1986.

Nutrasweet as discovered by James Schlatter.


NUTRASWEET COMPANY

Aspartame was used in 1700 NutraSweet products

Had gained wide acceptance of health and medical organization.

Best strategy was to sell sweetener as an ingredient.

It was negatively labeled as “one product” company.

Patent protection was going to expire in 1992.

Opening door for competitors impacting prices.

Need for new line development .

This need resulted in development of product called simplesse.

First FDA approval was not taken.


SIMPLESSE – THE PRODUCT

Discovered by Norman Singer.

Made from egg white and/or milk protein.

Microparticulation

Cholesterol free, digested like natural protein 7 substitute fat.

Cannot be used in cooked products.

Had big competitors in the market.(CPC int., P&G, Unilever)

Monsanto co. a diversified chemical org. acquired NutraSweet(1985).


SIMPLESSE - MARKETING

Need different channel for marketing simplesse.

Some merit on drawing distinction between low-calorie & fat free.

Entry into manufacturer.

Company decide to manufacture and market first range Simple pleasures.

An ice-cream substitute could not be called as ice cream.

Distributed nationally by Dreyer’s Grand Ice cream.

Sales grew by 66% in 1989 in comparison to 1986.


NUTRASWEET- BRAND ANALYSIS
Advantages

Well established brand.


Growing awareness.
Increasing number of diseases.
Acceptable taste
Approved by FDA
Stressing fact taste and richness of ice cream but low calorie.

Disadvantages

Expiring patent protection


FDA approval delay in case of simplesse.
Cannot be used in cooked food.
P&G product Olestra which can be used in cooked food.
Tied up with law.
LOGISTIC DECISIONS
Advantages

Formation of company Simplesse .


Distribution nationally by Dreyers’s Grand.

Disadvantages

Cannot carry simplesse with Nutrasweet old distribution channel.

NUTRASWEET POST DECISIONS


Higher margins

Simplesse not appeared to be a universal product

Prolonged heating destroys product

Competitive market

Wanted more control over simplesse


THANKYOU

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