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delivering "6,000 new sales points every month in rural areas" to expand
presence in Indian villages. The company has recently relaunched some of
its products, including Rs-2 Munch, Rs-4 Rasile Chow noodles and 12-gm
Everyday (milk powder) packets across the country.
onthedistributionfronttoo,Nestlehasdonequiteabitof
improvisation.Ithasbegunconnectingtheallpowerful
distributors(whichplayamajorroleinroutetomarket)througha
uniformandintegratedDistributionManagementSystembesides
alsobeginningtheprocessofadvancedsalesautomation.This
willincreasetransparency,accuracy,speed,enableenhanced
efficienciesintradespendsandultimately,executioninthe
market.Itwillalsoliberatethefrontlinesalesforcefromsomeof
theiradministrativeburdenandenablethemtofocusmoreontheir
corefunction.
PardeshiandJoshialsopointtowardsenhancedfocuson
distributionandpricepointbasedproducts,sayingNestlehas
addedaround200,000retailoutletsannuallyforthelastthree
years.ItisalsofocusingonproductspricedbelowRs10.
ProductsatpriceslowerthanRs10helpaddcustomersanddrive
penetrationinruralareas.
AFFORDABILITY: Nestle, too, recently launched Rs 2 and
Rs 4 products -- Maggi Masala-ae-Magic and Maggi Rasile
Chow, products which be first marketed in areas with low
purchasing power. Maggie Rasile Chow has been developed
especially for the rural/semi urban markets to provide lowcost, light meal fortified with iron. Masala-ae-Magic is a taste
enhancer containing iron, iodine and vitamin A. Shivani
Hegde, general manager (foods), Nestle India, says these
products were developed to address the widespread concern
about micro-nutrient malnutrition in India.
Duringthelastoneyear,ithaslaunchedtwobigproduct
innovationsMaggiRasileChowandMaggiMasalaeMagic
specificallytargetedatthehinterlandandlowincomefamilies.
Comingfromacompanywhichhastraditionallytargetedurban
clientele,thisattemptattakingproductsfurtherintoIndian
countrysidehappenedevenasNestlehikedpricesinselectstock
keepingunits(SKUs)inurbanareastogetmarginsbackontrack.
Then,insomeproducts,Nestlehassuccessfullyintroducedlower
pricedSKUssuchasChotuMunchatRs2andsinglefinger
KitkatformatatRs5tofurtherboostrealisations.
Accordingtothecompanysannualreport,MaggiRasileChowhas
beendevelopedespeciallyforrural/semiurbanmarketstoprovide
alowcost,tastylightmealthatisfortifiedwithironMaggi
furtherleverageditsstrengthlastyeartodriveaffordable
nutrition.TheMasalaeMagicisafortifiedtasteenhancerwith
iron,iodineandVitaminA.
Butalongsidetargetinglowerincomefamilies,Nestlecontinuedto
expandpremiumproductsalso.AnandRathiSecuritiesShirish
PardeshiandAniruddhaJoshipointedoutinananalysisthat
simultaneousuptradingandlowerexcisearedrivingrealisations
forNestle.
Thefocusonexpandingrevenueofpremiumproducts(Maggi
Pazzta)andthoseunderchocolatesaredrivingupaverage
realisations.Lowerexciseandselectpricehikesofchocolatesare
alsodrivinguprealisations.
Drishtee has entered into a partnership with Nestle India to create a
rural supply chain network in India. Initially, Nestle India is leveraging
Drishtees rural retail network to sell its products and understand the
rural needs.
AWARENESS:
Health Camps: The Popularly Positioned Product, MAGGI Masala-ae-