Download - Nestle Edition 11 Full
Nestlé is the world’s leading food
company. Since it was set up by
Henri Nestlé to provide an infant
food product, it has been
associated with providing high
quality, customer and consumer
focused products. In recent years
it has focused on becoming a
nutrition, health and wellness
company. Wellness is about
supporting people to live more
healthy lives e.g. through the
development of probiotic
yoghurts that help maintain the
balance of the digestive system.
The company is a world leader in
research and development, and
Nestlé’s scientists work in all
areas to create healthier and
more nutritious foods.
Maggi is an important brand for Nestlé. It is a global
brand – widely recognised as a consumer and
foodservices brand in continental Europe. In the UK,
Maggi consists of a range of culinary aid products
that are exclusively available to the catering trade
(known as ‘foodservice’) - primarily to chefs. Maggi
'A Natural Choice' is a new development that is
unique to the UK.
Nestlé FoodServices sells Maggi ‘A Natural Choice’to wholesale distribution companies, such as 3663and Brakes, and Cash and Carry operators suchas Booker, who in turn supply chefs and thecatering trade.
The UK foodservice market is very competitive.Companies must apply high standards to productsand their nutritional content to meet stringent foodsafety and labelling laws. In addition, members of thepublic are becoming increasing knowledgeable andchoosy about what they eat, as a result of foodscares and an increase in food allergies, leading toeven higher specifications.
02_Market researchThe Maggi brand experienced a decline in sales inthe UK leading up to 2004. This was because theproduct had come to be seen as uninteresting andold fashioned due to its dehydrated format andflavour. The product failed to meet users’ increasingrequirements for fresh tasting culinary aids.
Maggi commissioned face-to-face qualitative researchto get a deeper insight into chef and consumer views.Chefs were asked to discuss their requirements.
The results showed that consumers were saying‘fresh is best’.
However, the chefs’ view was slightly different in termsof: ‘My customers would like everything to be madefrom scratch (i.e. made from basic raw ingredients),but I don’t have the time and money to do this’.
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01_IntroductionBusinesses operate in markets that are constantly changing. Consumertastes and expectations are always on the move. This case studyexamines a market-focused innovation developed by Nestlé. It exploresthe development of Maggi ‘A Natural Choice’: a range of culinary(cooking) products that is primarily targeted at chefs.
Nutrition, Health &Wellness – New ProductDevelopment at Nestlé
Maggi (the master brand)
Maggi ‘A Natural Choice’Culinary Aids
Maggi‘A Natural
Choice’
Chefs andother end
users
Largewholesalers
Cash& Carry
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The research revealed that the market was divided
into a number of segments. A segment is a part of
an overall market made up of customers with similar
characteristics. Chefs fitted into four main segments:
The research showed a sizeable demand for Segment
3 – a target for Maggi ‘A Natural Choice’ products.
Brand proposition – the research defined a
proposition for developing the new brand. This new
proposition was to create a product with more
natural qualities for ‘chefs who aim to please’ who
want their cooking to be as fresh tasting as
possible. Natural qualities would be defined in
terms of taste, smell, look and texture.
Target market - Maggi ‘A Natural Choice’ target was
to be ‘chefs who aim to please’. Their prime aim is
to provide delicious, wholesome foods that
customers enjoy. These chefs enjoy their work and
have a pride in the satisfaction they give customers.
They are not in business just to make money.
Brand ambition – Maggi ‘A
Natural Choice’ combines the
goodness and taste of real
ingredients with time and cost
saving.
Two main strategies to deliver
this ambition were implemented
in 2005:
1. To develop and launch a
relevant profitable range of
convenient natural tasting
culinary aids.
2. To reposition Maggi as the
more natural tasting culinary
aid brand.
03_Research anddevelopmentNestlé’s strength in product
research and development
makes it possible to develop
products to fit market
requirements. Maggi is
committed to providing cutting
edge products that chefs want,
e.g. products with a lower salt
content. These products are
high quality and easy to use.
The new products need a more
natural taste while at the same
time offering value for money.
The Maggi ‘A Natural Choice’ range is now lower in
salt and made using sunflower oil. In addition, where
possible the range benefits from having no added
MSG, is gluten free and contains no artificial colours
or flavours.
The Maggi ‘A Natural Choice’ range has clear and
easy to understand nutrition and allergy information
on all packaging to help chefs understand what is in
the products so they in turn can inform their
customers.
The range is aimed at a variety of chefs. For
example, two Maggi ‘A Natural Choice’ products
widely used in school kitchens are:
• multi-use tomato sauces
• bouillons (i.e. stock or broth for soup and sauces
produced by cooking vegetables, poultry, meat
or fish in water, which is then strained).
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Chefs who innovateOnly use fresh ingredientsand are seen to be theones who set the newtrends.
Segment
1
Chefs who aim to pleaseWide use of culinary aids.Making money is not theironly motivation.(“Customers would loveeverything to be made fromscratch but I don’t have themoney to do this”).
Segment
3
MAGGI‘A NATURAL
CHOICE’KEY TARGET
Chefs who aim to impressSome use of culinary aidswhere absolutely necessary.Pride themselves in highquality, impressive results.
Segment
2
Chefs who aim to satisfyDriven by cost not quality.(Seek to make maximumprofit or work to minimumcost).
Segment
4
Brand Proposition for Maggi 'A Natural Choice'Great tasting culinary aids for chefs who aim to
please by providing great taste and more natural results.
Targeted atChefs who want to provide delicious wholesome foods
that customers enjoy.
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1. Research and Development Brief – the factory is
provided with a clear written product brief. Maggi ‘A
Natural Choice’ paste bouillons brief was based on
the new brand proposition. The brief gives full
product specifications, including salt content, fat type
and any specific dietary needs such as gluten free.
The final price range for the product is also given.
2.Creation of samples and tasting - food
technologists develop a variety of kitchen samples,
which are then tasted by a panel of specialists.
3.Feedback and observations - results of the
product testing are reported to the factory as part
of an interactive process. Any changes needed
are incorporated into further samples.
4.Sign off - when everybody is happy, an
agreement on the samples is confirmed. Prices
are agreed. The factory then produces a trial
production of approximately 1 tonne before going
into full scale production.
1. Multi-use tomato sauce – this
saves time vs using chopped
tomatoes. The product is pre-
reduced which means less
wastage (the juice from chopped
tomatoes makes up one third of
a tin and is usually poured away)
and also less cooking time as the
product can be used straight
from the tin. It contains sunflower
and olive oil and is pre-seasoned
with basil and oregano so it can
be used straight from the tin. The
sauce is mainly used as a pizza
topping or a pasta sauce as well
as in soup and casseroles, and
one serving can contribute to one
of the suggested five portions of
fruit and vegetables per day.
Maggi also uses easy to
understand labels showing
nutritional and other information.
For example, the multi-use
tomato sauce label states:
• there are no added colours or
artificial flavours
• there is a low fat content
• the salt and sugar content has
been reduced by 25%
• the key nutrients contained e.g.
energy, protein, carbohydrates,
sugars, fat, saturated fats, fibre
and sodium, salt equivalent
labelling (if used on brand)
• details of allergenic ingredients
used.
2. Paste bouillons – using a paste or powder bouillonis quicker than preparing stock from scratch andhelps to provide a consistent, authentic flavour.They are easy to use, cost effective and there is nowaste. Chefs prefer paste bouillon because theybelieve it dissolves better when added to water.Maggi paste bouillons are ideal for school cateringbecause they are gluten free, contain no addedMSG, artificial colours or flavours, are made withsunflower oil and have less than 0.7g salt per100ml when made up. Bouillons are mainly usedas a base to soups and sauces, as well as addingflavour to casseroles and stews.
04_New product development(innovation and renovation)Each of Nestlé’s European factories is a centre ofexcellence that specialises in developing new areasof food technology. New paste bouillon research anddevelopment is carried out at an Austrian factory. Thenew Maggi ‘A Natural Choice’ paste bouillons arecreated and developed there.
New product development involves a number of
important stages. To give an idea of timescale, the
development process for paste bouillons took 6 months:
At the same time front labels are designed, product
photography commissioned, recipe sheets
produced and sales presenters are designed to
ensure a successful product launch.
05_Product launchLaunching to chefs is very different from the launch
of a product for the retail environment. This is
because it is not easy to communicate directly with
chefs, as this target market is made up of busy
people who work unsociable hours.
Publicity in the press started 6-8 weeks before the
launch. Selected trade media such as Catering
Update and Caterer and Hotelkeeper carried
advertising and promotional material. Eight page
supplements were produced to get the message
across. These appeared in the April and May editions
of the magazines, along with ongoing features in the
wider press. Direct mailing of informative literature to
chefs and other users supported this. Promotions
including providing opportunities at special events for
chefs to sample new products were set up.
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For more information about Nestlé please browse:www.nestle.co.uk
www.nestlefoodservices.co.uk
Maggi works closely with the main FoodServices
wholesalers (3663 and Brakes) and Cash and Carry
operators (e.g Booker). This ensures that
distribution of Maggi ‘A Natural Choice’ to caterers
and chefs is effective.
These companies use a Product Listing Order Form
(PLOF), which is updated by negotiation in April and
September only. It is imperative to ensure distribution
takes place to meet these critical timelines.
Wholesalers, together with cash and carry operators,
were therefore given supporting promotional material
about the new products to coincide with the launch.
Other activities to develop young chefs run
alongside Maggi ‘A Natural Choice’ advertising and
promotional activity. Nestlé FoodServices sponsors
two major prestigious events for chefs which involve
using Maggi 'A Natural Choice' products. The
Nestlé Toque d’Or competition is in its 18th year.
Nearly every young chef dreams of running their
own restaurant. The challenge set is the task of
designing a restaurant concept and theme. This
includes putting together an exciting menu. Teams
of six students work on this challenge.
The other event is the Local Authority Caterers
Association (LACA) School Chef of the Year award
sponsored by Nestlé FoodServices. This was
launched to applaud the skills of many unsung
heroes – the school chefs who prepare the daily
school dinners. Each entrant has one and a half
hours to cook a healthy, balanced main course and
dessert within a strict budget. The meal must
appeal to 11 year old pupils.
This is an important
competition since schools
provide an estimated 30% of
children’s daily food and
nutrient intake. The
government’s Healthy Living
blueprint encourages school
caterers to help pupils eat
sensibly and adopt healthier
lifestyles. The LACA School
Chef of the Year award
recognises the important work
going on in school kitchens
throughout the UK. These
awards, together with the
launch of Maggi ‘A Natural
Choice’, are all part of Nestlé’s
commitment to providing
healthier menus within a busy
chef’s time constraints.
06_ConclusionThe Maggi ‘A Natural Choice’
range is designed to combine
chefs’ requirements for tasty
wholesome food with
consumers’ requirements for
more nutritionally balanced,
healthier meals. Maggi ‘A
Natural Choice’ is a carefully
researched and developed
product designed to give
customers more of what
they want.
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Brand: an identifying symbol, word or mark that
differentiates a product or company from its
competitors.
Brand proposition: a compelling and differentiated
reason for the target user to choose the brand.
Cash and carry: wholesale warehouse where
retailers pay by cash to take products away.
Category: a group of products that fulfil the same
needstate.
Dehydrated: products that have had the water
content removed for longer and easier storage.
Gluten: a protein contained in certain cereals
(e.g. wheat) which can induce coeliac disease in
susceptible individuals, who then require a gluten
free diet.
Reposition: alter a product and its marketing so
that people see it in a new way.
Strategy: a plan.
Target market: a particular part of the overall
market that a product is aimed at.
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