Cannes 2011: "Marketing is in Nestlé's DNA": Paul Bulcke

On Friday, post-lunch, delegates flocked to the Debussy to watch Publicis' Maurice Lévy chat with Nestlé's Paul Bulcke about the company's marketing plans and advertising in general.

On Friday afternoon, Maurice Lévy, chairman, chief executive officer and chairman of the management board of the Publicis Groupe quizzed Paul Bulcke, chief executive officer of Nestlé S.A. on a range of topics to do with nutrition, marketing and communication.

Lévy: Tell us a little bit about where Nestlé is headed in the future.

Bulcke: We want to be a company that creates healthy choices for people. There are many emerging, potential consumers out there; we want to cater to their nutritional needs in the coming days. We are sensitive to the new needs of the emerging markets. At the same time, we also want to go after the population of the developed markets. The other plan is to cater to the nutritional needs of the ageing population, keeping in mind their specific requirements.

Lévy: What differences have you noticed in the needs and behaviour of your consumers over the past few decades?

Bulcke: A few decades back, the world sort of classified into two parts, namely, the Western world, and the rest of the world. The Western world was seen as the developed part of the world, while the other developing countries were seen as lagging behind. These countries were seen as resources that were there to fuel the growth of the Western world, with raw materials and other things. I don't mean to sound cruel here, but this is how it used to be two-three decades back!

Lévy: And what is the change that you see today?

Bulcke: Today, the scenario is very different. The emerging consumer from the developing world is speaking out and demanding more. When countries like India, Brazil and China jointly demand better products, the world has to listen. In these developing countries, there is a bright tomorrow; their tomorrow is certainly going to be better than their yesterday.

Lévy: How does Nestlé find in its products the right balance between nutrition, health and wellness on one hand, and pleasure on the other?

Bulcke: I believe that food should be pleasurable, but at the same time have nutritional value. Nowadays, with the right technology, it has become possible to put micro-nutritional elements into most products. Another important thing is knowledge -- people today need educative information about the nutritional aspects of their food. This education will help strike the balance between health and pleasure.

Lévy (laughs): What about Nestlé's chocolates and other such products? How would you balance out pleasure and nutrition in these cases?

Bulcke: Well, when it comes to our chocolates, I suggest proportionality. Chocolate, if consumed in the right proportions, is good for health! We believe in using technology in order to responsibly address the issue of obesity.

Lévy: Moving on to another topic, how much do you trust marketing?

Bulcke: We are entirely a marketing company! Marketing is in our DNA. Look at our Nestlé logo; the birth of that logo was the very first indication of our belief in marketing. The picture of a mother bird nurturing her young is what brings brand Nestlé to the consumers. Today, Nestlé is in existence because of the trust that consumers have in its products. And, it is marketing that builds this bridge between the products and the consumers; marketing is responsible for the relationship and connectivity between the two.

Lévy: Let's talk about advertising now. What is the most important thing when it comes to Nestlé's communication?

Bulcke: With respect to communication, three things are most important -- firstly, the brand's essence, secondly, what I call 'the big idea' and thirdly, creativity.

Lévy: Could you please elaborate on these three points?

Bulcke: Certainly. The brand's essence is what it stands for, its purpose. You have to have a strong definition of your brand's essence. Around this, an idea must be built, and this idea has got to be very simple. Then, creativity helps translate this great idea into visual language. When all three aspects are in place, the brand's communication is able to cut through clutter.

Lévy: Beyond Nestlé, name a brand that you admire and tell us why.

Bulcke: I admire L'Oreal. It's messaging is amazingly consistent, yet refreshing each time.

Lévy: (taking a question from the audience) Explain how product packaging adds value to a brand.

Bulcke: Product packaging is extremely important because it is the first communication that the product has with the consumer. Packaging is the best way to connect with consumers on a rational level.

Lévy: (taking a question from the audience) Is Nestlé cashing in on the digital space?

Bulcke: (smiles) Yes, we are accelerating towards digital, but very cautiously.

Lévy: (taking a question from the audience) How do you manage the balance between your global brand strategy and local brand strategy?

Bulcke: I believe in global inspiration and local execution. This means that what the brand stands for is its global image, but it is at the local level that consumers own the brands they like. We're a de-centralised company when it comes to execution because food is local. The food-consumer relationship is a very local one.

To view other interviews from Cannes 2011, click here.