ntroduction of nestle

8/3/2019 Ntroduction of Nestle

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1. ntroduction of Nestle

o Nestle is a multinational packaged food company founded and headquartered in Vevey, Switzerland.

o It results from a merger in 1905 between the Anglo-Swiss Milk Company for milk products established by the Page

Brothers in Switzerland, in 1866 and the Farine Lacte Henri Nestl Company set up in 1867 by Henri Nestl to provide

an infant food product.

2. Introduction of Nestle

o Several of Nestl's brands are globally renowned, which are not only in the local but also in the global market leader.

Nestle is the market leader in the following product category:

Milk

Chocolate

Confectionery

Bottled water

Coffee

Creamer

3. Journey of Nestle, India

o 1959 - On 28th March, the Company was incorporated at New Delhi.

o 1987 - During the year installation of a new factory at Nanjangud (Karnataka), for the manufacture of instant coffee was in

progress.

o 1989 - The name of the company was changed from `Food Specialities Ltd.' to `Nestle India Ltd..


o 1997

o - NIL is one of the top players in the processed food & beverages industry and the largest producer of instant coffee with a

49 per cent marketshare. - Nestle's wafer chocolate brand, Kit Kat, which created a major dent in the market with its

launch, its international milk drink brand Milo has garnered a mere three per cent share (value terms) in the Rs 500 crore

market, a year after its launch in India.


o 2000 - Nestle is set to enter the domestic bottled water business and will launch the product under the brand name `Pure

Life'.

o - Nestle India has launched a range of gift packs under the Fox confectionery brand name for the festivel seasons.


o 2001 - Nestle India Ltd. has launched `Pure Life', its mass-market bottled water, adding one more premium brand to the

already saturated Rs 600-crore bottledwater segment.


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o 2002 -Nestle Group increases holding in Nestle India to 53.27% -Ties up with Nilgiris to co-brand various dairy products

like dahi, paneer, ghee and possibly milk.

o -Launches a throat lozenge branded Acti-V to compete against Proecter & Gamble's Vicks cough drops.


o 2004 -Nestle India bags Tetra Pak's annual dairy and beverage industry award -Nestle India has signed on Bollywood

actress Preity Zinta to feature in its latest commercial brand maggi.

o -Nestle introduces 'Sweet Lassi' in Delhi, Punjab and Haryana -Nestle India said on June 24, 2004, it has signed Rani

Mukherjee as brand ambassador for its chocolate brand Nestle Munch and the advertising campaign will be released on

June 25.


o 2005 -Neslte India launches new variant of Maggi -Delists securities from the Delhi Stock Exchange Association Ltd

(DSE) w.e.f. July 15, 2005.

9.

Nestle Maggi

o Maggi noodles is a brand of instant noodles made by Nestle. The brand is popular in

Australia

India

Malaysia

New Zealand

Nepal

South Africa

Singapore

o Recently a line of Rice noodles has also been introduced in India. In fact, "Maggi" has become a generalized

name for instant noodles in India.

10. Nestle Maggi

o MAGGI 2-MINUTE Noodles is one of the largest snack food brands in the country and defines the Instant Noodles

category in the country. MAGGI 2-MINUTE Noodles has been renovated to provide 20% of the RDA* of Calcium and

Protein for the core target group. It is available in 4 flavors:

Masala,

Chicken,

Tomato and

Curry.

11. Question 1.

o 1. Discuss the strategies undertaken by Nestle India Ltd. to create and establish a new product category.


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12. Establishing a new product by Maggi

o In the early 2000s, the Nestl Group had been taking measures to transform itself into a 'health and wellness' company.

The company had also set up new research and development facilities with a view to improving the attributes of the

existing Nestl products to make them healthier, and to develop new health and wellness products.

o In March 2005, the Maggi brand too took to the health route with the launch of Vegetable Atta Noodles. NIL made use ofthe group's extensive research and development facilities in developing this new 'healthy' product. According to NIL,

Vegetable Atta Noodles were healthier as they were made of whole wheat flour instead of maida (refined wheat) and also

because they contained real vegetables.

13. Strategies adopted by Nestle

o Nestle manages to create new product categories under the brand name of Maggi. They adopted the following strategies:

Maggi introduced the Maggi sauces category and promoted it under the brand name of Maggi. It is always easier to

promote a new product under the name of the established brand as the expenditure and people recognition time is

less. More than it both are similar product category as sauces and noodles are interrelated to each others.

Nestle also introduced the Pizza variant by which one can be able to create the pizzas at the home. It was also

promoted under the brand name of Maggi.

Nestle also used the cultural base marketing in India as knowing the fact that Indian people like rice, they

introduced Maggi rice noodles mania.


Nestle was able to successfully use the umbrella branding for Maggi. They introduced many variants under the

brand name of Maggi. By doing so, they were successful in making the product popular. Advantage of using

umbrella branding:

Acceptance level is high.

Less time taken to be accepted.

Advertising and promotional budgets is low.

Give strength to the establish brand name and increase the overall brand equity.


Maggi was also successfully able to position its noodles in the minds of the consumer as the fast food items and

they can be take them as breakfast during the time of evening.

On the other hand they also introduced some categories which are having the complete diet in the form of noodles.

They said that these contain some protein and calorie level which is must for the children. By doing the emotional

marketing they were successfully able to promote these products.

MAGGI Vegetable Atta Noodles

MAGGI Dal Atta Noodles

MAGGI Rice Noodles Mania

MAGGI Healthy Soups


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MAGGI Healthy Soup- Sanjeevni

16. Question 2.

o What measures were undertaken in sustaining the image of a popular brand (Maggi noodles) and the reason behind the

brand extension of the same?

17. Measuring the Maggi brand

o Since we all know that Maggi is well reputed brand and it is doing very well in many c ountries. So, when the Maggi s

sales start declining, the company has to think over certain issues what to do with it. Company think over the following

issues and then came to decision:

Increasing competitions in the noodles category.

Maggi still attached with the emotionally with the consumer.

Brand equity is high.

Need of change in taste or positioning.

Need of brand extension due to the increasing competition.

Need of increasing the product category.

Brand requires to be revitalize over the period of time so measuring it is very important.

18. Reason of extending the Maggi brand

o Since it was very old brand so, newly introduced category can be introduced under the brand name of Maggi.

o For changing the image of Maggi from only noodle to other product category.

o Due to increasing competition Maggi was not able to grow so, brand extension can help it from overcoming to this

problem.

o Wrong positioning has been done in the minds of consumer which. Consumer think Maggi only as the fast food items

while Maggi wants to create the image of complete food. So this is the reason it introduced the health related variant.

o Maggi also know that it has to increase its presence into other category to increase the visibility of the brand Maggi and

also make these product popular so, it introduced the sauces category under the brand name of Maggi.

19. Question 3.

o What strategies were adopted by NIL in repositioning Maggi noodles?

20. Strategies of Nestle Maggi

o Nestle at the initial stage was targeting on the house lady. But very soon it realize that its target segment is not them. It

came to know that most of the child and teenager. So they changed their positioning and came with the positioning of two

minutes noodles which is targeted for the teenagers for their convenience and they can easily make it.

o Nestle also target the house lady by introducing the health noodles. These can be consumed as the complete food which

gives the calorie and meet all necessary health requirements. For these variants they introduced the new positioning Taste

bhi, health bhi.


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o NIL introduced the Maggi brand to Indian consumers when it launched Maggi 2 Minute Noodles, an instant food product,

in 1982. At that time, Indian consumers were not exposed too packaged food category and they dont want to consider it.

They like to eat traditional Indian dishes rather than canned or packaged food.

o In fact, NIL was trying to create an entirely new food category, instant noodles, in India. Initially, the company targetedworking women on the premise that Maggi noodles were fast to cook and hence offered convenience. However, this

approach failed as was evident from the fact that the sales of Maggi noodles were not picking up despite heavy media

advertising.


o To get rid of it, NIL conducted a research, which revealed that it was children who liked the taste of Maggi noodles and

who were the largest consumers of the product. so they came up with the new positioning which is taste oriented and also

targeted to the women on the base of convenience.

o Through its ads, NIL positioned Maggi as a 'fun' food for kids which mothers could prepare easily. Taglines like 'Mummy,

bhookh lagi hai' (Mom, I'm hungry), 'Bas 2-Minute,' (Only 2 minutes) and 'Fast to Cook Good to Eat' effectively

communicated the product's benefits to target consumers.

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