1.

ntroduction of Nestle

o o

Nestle is a multinational packaged food company founded and headquartered in Vevey, Switzerland. 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
3.

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

Journey of Nestle, India

o o

1959 - On 28th March, the Company was incorporated at New Delhi. 1987 - During the year installation of a new factory at Nanjangud (Karnataka), for the manufacture of instant coffee was in progress. 1989 - The name of the company was changed from `Food Specialities Ltd.' to `Nestle India Ltd.. Journey of Nestle, India

o
4.

o o

1997 - 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.

5.

Journey of Nestle, India

2000 - Nestle is set to enter the domestic bottled water business and will launch the product under the brand name `Pure Life'. - Nestle India has launched a range of gift packs under the Fox confectionery brand name for the festivel seasons. Journey of Nestle, India

o
6.

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.

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
7.

-Launches a throat lozenge branded Acti-V to compete against Proecter & Gamble's Vicks cough drops. Journey of Nestle, India

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. -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.

8.

Journey of Nestle, India

2005 -Neslte India launches new variant of Maggi -Delists securities from the Delhi Stock Exchange Association Ltd (DSE) w.e.f. July 15, 2005. Nestle Maggi

9.

o 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 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

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.

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

12. Establishing a new product by Maggi

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.

In March 2005, the Maggi brand too took to the health route with the launch of Vegetable Atta Noodles. NIL made use of the 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

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.

14. Strategies adopted by Nestle

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.

15. Strategies adopted by Nestle

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

MAGGI Healthy Soup- Sanjeevni

16. Question 2.

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

Since we all know that Maggi is well reputed brand and it is doing very well in many countries. 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 o o

Since it was very old brand so, newly introduced category can be introduced under the brand name of Maggi. For changing the image of Maggi from only noodle to other product category. Due to increasing competition Maggi was not able to grow so, brand extension can help it from overcoming to this problem. 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. 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.

What strategies were adopted by NIL in repositioning Maggi noodles?

20. Strategies of Nestle Maggi

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.

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.

21. Strategies of Nestle Maggi

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.

In fact, NIL was trying to create an entirely new food category, instant noodles, in India. Initially, the company targeted working 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.

22. Strategies of Nestle Maggi

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.

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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