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’.

Nes

tlé

113

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

21651_NESTLE 9/3/06 8:10 am Page 1

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).

Nes

tlé

114

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.

21651_NESTLE 9/3/06 8:10 am Page 2

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.

Nes

tlé

115

21651_NESTLE 9/3/06 8:10 am Page 3

GL

OS

SA

RY

OF

TE

RM

S

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.

Nes

tlé

116

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.

21651_NESTLE 9/3/06 8:10 am Page 4