Nestlé China Mobile Quick Guide. 12 th Mar., 2014

Nestlé China Mobile Quick Guide 12 th Mar., 2014 1

Agenda Reasons to do Mobile Marketing Purpose & KPI Guidelines & Cases Mobile ChatAPP Trend & Cases in other Markets Key Contact

Living the Age of Mobile

Top 4 Reasons to do Mobile Marketing in China Mobile internet has gain a large penetration and is still growing fast, throughout tier 1 to 3 cities in China. Up to end 2014, China has over 500 mio mobile netizens, and 70% of the new netizens in China use mobile internet. In china, mobile phones is the real identity. You are attached to a number and captured in the government system. With the fast growth of smartphone and 3G/4G, mobile internet can cover even in tier 3-4 cities. Because of smart phone and network capability, utility, service, shopping and entertainment on the phone become possible. The competition between Tencent and Alibaba started from Nov. 2013 in regards to the mobile payment proves that mobile is playing a more and more important role.

Key Activities Engaged in Chinese Users Mobile Experience communication navigation information social information personal utility shopping personal utility personal utility social entertainment entertainment Data source: iresearch Survey Report, Dec. 2012- Jan. 2013. Sample N=31223 (cellphone users) and 6210 (tablet users)

Mobile Activities in 2 Dimensions, 7 Categories Which could be opportunities for brand & consumer engagement UTILITY EMOTION Navigation Entertainment Informational Portal Communication Shop Personal Utility Social

Purpose These guidelines are intended to encourage to harness the power of Mobile acceleration, which is part of China s digital MWB for 2014. You can use those guidelines best to 1) make all your newly created digital touch-points mobile accessible, 2) include mobile elements into your promotions to drive to sales online and offline.

Committed Mobile KPIs for 2014 1. 100% Mobile Accessibility Check for owned digital assets of Nestle F&B, IN and Wyeth.

Committed Mobile KPIs for 2014 2. All F&B BUs provide at least one campaign embedding mobile to accelerate sales online- or /and offline. Prioritize a mobile marketing program/initiative in overall marketing plans Establish Mobile search Consumer Experience Mobile ads Wechat Consumer Experiential Activations WOM/ Buzz CRM Wechat Mobile embedded promotions Shopper Engagement Activation Multiply Shopper Experience

Guidelines and Examples Four Dimensions Mobile promotion should not be a standalone tactic. It is a part of your overall communication. The following Four Dimensions could be considered according to your communication/ engagement strategy. Ads & Search CRM/Service WeChat Promotion

Guidelines and Examples First Dimension - Ads & Search Ads & Search WeChat CRM/Service Promotion Strategize and target. Mobile ad campaign should also be well integrated into your overall marketing campaigns and aligned toward an ultimate strategic goal. Targeting is essential as well to determine to whom campaigns should be delivered, what type of creative and messaging to use, and when to deliver particular ads. Master the basics of mobile ad design. Be selective in the words you choose, be concise (use fewer words, if possible), and choose colors that both align with your branding and capture users attention. Utilize rich media in the smart phone era. Interactive rich media ads are proven to be an effective tool in boosting mobile web traffic. HTML5 advertising is scalable across device platforms for native apps and browsers to create interactive ad platforms designed to deliver the slickest ads. Analyze and test everything. Testing different combinations of text, images and targeting can be vital in effectively achieving mobile advertising objectives.

Guidelines and Examples First Dimension - Ads & Search Ads & Search WeChat CRM/Service Promotion Starting from year end 2013, Baidu released its LPQ(Landing Page Quality)policy. Only mobile sites can be displayed on the 1 st page of Baidu mobile search. Log on the site on the right to check your accessibility on mobile. http://mobi.baidu.com

Guidelines and Examples First Dimension - Ads & Search Ads & Search CRM/Service WeChat Promotion Example: Creative mobile advertising formats enabled by HTML5

Guidelines and Examples Second Dimension - Wechat Ads & Search CRM/Service WeChat Promotion Use Wechat as a direct and private service channel to communicate with consumers Encourage consumers to share brand/product images and news, which is much more important than talking with the official account. Be fun and creative to attract both fans and non-followers Integrate engagement & share with promotion. Discount benefit can also intrigue engagement

Guidelines and Examples Second Dimension - Wechat Ads & Search CRM/Service WeChat Promotion Example: Intel Ultra Star Broadcasting on Wechat, leveraging the voice talk function to attract and engage consumers.

Guidelines and Examples Third Dimension - CRM/ Service Ads & Search WeChat CRM/Service Promotion CRM Example: La Roche-Posay O2O CRM via Wechat

Guidelines and Examples Third Dimension - CRM/ Service Ads & Search WeChat CRM/Service Promotion Service Example: Nike Free ID, consumers can take any photo and send to Nike account and get a customized pair of Nike shoes. Consumers can immediately buy the shoes on e-commerce platform.

Guidelines and Examples Fourth Dimension - Mobile Promotion Ads & Search CRM/Service WeChat Promotion Create a close loop of visit-purchase Enable shoppers to purchase and payment within the shortest path List competitive and attractive SKUs as promotional target Optimize page design and enhance user experience to intrigue additional purchase Encourage repeated visit and purchase

Guidelines and Examples Fourth Dimension - Mobile Promotion Ads & Search CRM/Service WeChat Promotion Example: IKEA AR Tech Enabled Interactive Promotion Catalogue

Guidelines and Examples Fourth Dimension - Mobile Promotion Ads & Search CRM/Service WeChat Promotion McDonald s promised customers in China buying tea on a certain afternoon in its restaurants a discount if they completed the transaction in the app using TenPay, Tencent s electronic payments services.

Mobile IM Trend Overview

Mobile Chat APP Promotion Case in other Markets 16 Handles, a US frozen yoghurt chain ran a mobile messaging campaign. Consumers could take a picture of themselves or their friends enjoying a treat in one of its store and receive a discount on their purchase extending in value from 16% of 100% if they sent the image to the brand on Snapchat. In keeping with the core characteristic of this app, however, the coupon only lasted for ten seconds, so shoppers had to be quick in redeeming it.

Mobile Chat APP Promotion Case in other Markets As part of an attempt to directly drive sales, Uniqlo, the fast-fashion chain, leveraged Kakao Talk to distribute a special offer to users. The retailer gave anyone who sent out a message containing a discount coupon. In the first 16 days, some 20% of messages were opned. Of there, 40% were reclaimed in-store, hinting at a fusion of digital and physical to profitable effect.

Agenda Reasons to do Mobile Marketing Purpose & KPI Guidelines & Cases Mobile IM Trend & Cases in other Markets Key Contact

Key Contact If you would like to plan your mobile activities, please contact the Mobile Marketing Champion: Nestle Marketing Communications: Gissel Zhong Corporate Digital Marketing and CRM Manager Gissel.Zhong@cn.nestle.com Landline: +86-10-84347623