Nestlé Nutrition: a Magento 2 Case Study

Nestle Nutrition Magento 2 case study

Edited on 14th May 2020 with results.

The Nutrition market: size and segments

Nutrition is at the confluence of health /well being and food & beverage.

Nutrition is a huge market with Dietary Supplements alone expected to reach US$ 252.1 Billion by 2025, with a healthy (pun intended) CAGR of 7.4% between 2015 and 2025. (1)

You can segment this market it in different ways:

  • By customer demographics: infants, men, women, senior, animals
  • By application or health concerns: diseases, ageing, food intolerance, beauty, sports
  • By distribution channels: supermarkets, specialty stores, pharmacies, direct
  • also by form (i.e. pills, gels), ingredients (i.e. vitamins, amino acids…) and geographies

Future Market Insights (FMI) “Dietary Supplements Market: Global Industry Analysis and Opportunity Assessment, 2015 – 2025

The biggest segments in Nutrition are:

  • Women
  • General well being and weight loss 

The highest growth in Nutrition segments are:

  • The pharmacies/drugstores channel, expected to register a healthy CAGR of 7.6%  in value
  • Sports and nutrition segment with a forecast CAGR of 8.9% vs general well being with a forecast CAGR of 6.9%

Nestlé Healthcare Nutrition

In 2011, Nestlé founded an Institute of Health Sciences which mission is to develop scientific methods to improve health through nutrition.  They run a lot of research from genetics to diet and lifestyle.

Like many of us, they believe that what we eat every day has the most impact on our health.

The commercial arm, the Healthcare Nutrition division of Nestlé generated CHF 16Bn in sales in 2018 (2). The key applications they cover are:

  • gastro instestinal
  • age care
  • pediatrics
  • obesity
  • critical care/ surgery
  • brain health
  • cancer/ oncology
  • food allergy
  • metabolic diseases

Nestlé Nutrition online store on Magento 2

eStepCheckout

Nestlé launched a B2C webshop: nutricaoatevoce.com.br in Brazil. This Magento 2 store is a new and fully owned distribution channel for Nestlé in the Latin America region.

Key advantages for local consumers:

  • access to the wide range of Nestlé Healthcare nutrition products
  • discounts and promotions
  • multi-channel way to contact the store including telesales, online chat, email and Whatsapp
  • cart sharing to health professional can recommend the exact product to their patients
  • easy payment options including installments and recurring billing
  • shipping all over Brazil

The back end innovations they implemented in their Magento 2 store:

  • Fulfillment: possibility for products to be delivered by different distributors
  • Design: scalable and extensible
  • Payment: subscription/ recurring payment customization
  • Conversion Optimization:
    • possibility to close sales via telesales
    • One Page Checkout which we are proudly powering.

Read more about those features developed by Magento Agency Webjump

Results

The nutricaoatevoce.com.br store relaunched in 2019, and a year later, massive improvement are reported across all metrics:

  1. Page load
  2. Conversion
  3. Double digit growth for online sales and the number of transactions processed

Victor Vendramini, Marketing Digital and eCommerce head at Nestlé Latin America comments:

“nutricaoatevoce.com.br store is a worldwide pilot of Nestlé Health Science (NHS) launched in Brazil.

The ambition of the eCommerce strategy, coupled with the implementation of new features to improve consumers experience has led Nestlé to strategically switch to the Magento platform that aligns with all NHS’s strategic needs.

The project is considered a great success due to the strong growth of the online sales channel as well as the smooth roll-out of the platform to other markets and business units of Nestlé

Focus on the Checkout experience

If you’re not familiar with this checkout experience, what you need to know is that a simpler checkout improves conversion. Ideally you will display less fields and make them all appear on one page above the fold, along with an order total section, that updates each time consumers change their desired shipping or payment methods.

Indeed, it addresses the key reasons for cart abandonment such as:

  • speed
  • form filling complexity
  • surprises due to shipping and other additional costs.

Cart abandonment is the biggest challenge in eCommerce with over a trillion USD lost due to 70% of online shoppers who place an item to cart not finalizing their purchase. Read more about Cart Abandonment and 3 things you can do about it here.

Because this challenge can be tackled simply by adding technology, our plug-in got popular with over 20,000 Magento stores trusting us since 2010.

We’ve seen our software working across 40+ countries and all the industry verticals you can think of. Here is a recent selection of 25 examples of Magento 2 stores with our checkout.

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References:

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Thien-Lan WeberAbout Thien-Lan Weber

Thien-Lan is the Chief Marketing Officer at OneStepCheckout. She's a Marketing expert with 20 years experience across Europe and Asia Pacific including Accenture, Clarins, Johnson & Johnson, eBay and PayPal.

Thien-Lan loves connecting people and helping retailers get the most out of eCommerce. As such, she recently joined the board of ExtDN (Extension Developer Network).

She grew up in Paris, holds a Master of Science in Management from HEC Paris and is back to France after 16 years living in different parts of the worlds, the latest destination being Oslo where she joined OneStepCheckout.