nutrition product development of maggi

7/29/2019 Nutrition product development of maggi

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NESTLE (INDIA)POSTED BY SIDDHARTH ROY ON TUESDAY, AUGUST 25, 2009

COMPANY PROFILE

Nestl India is a subsidiary of Nestle S.A.of Switzerland. With seven factories and alarge number of co-packers, Nestl India is a vibrant Company that provides consumersin India with products of global standards and is committed to long-term sustainablegrowth and shareholder satisfaction.

The Company insists on honesty, integrity and fairness in all aspects of its businessand expects the same in its relationships. This has earned it the trust and respect ofevery strata of society that it comes in contact with and is acknowledged amongstIndia's 'Most Respected Companies' and amongst the 'Top Wealth Creators of India'.

HISTORY
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Nestl was founded in 1867 on the shores of Lake Geneva in Vevey, Switzerland andits first product was Farine LacteNestl, an infant cereal specially formulated byHenri Nestl to provide and improve infant nutrition. From its first historic merger withthe Anglo-Swiss Condensed Milk Company in 1905, Nestl has grown to become the

worlds largest and most diversified food Company, and is about twice the size of itsnearest competitor in the food and beverages sector.

Nestls trademark of birds in a nest, derived from Henri Nestls personal coat ofarms, evokes the values upon which he founded his Company. Namely, the values ofsecurity, maternity and affection, nature and nourishment, family and tradition. Today,it is not only the central element of Nestls corporate identity but serves to define theCompanys products, responsibilities, business practices, ethics and goals.

In 2004, Nestl had around 247,000 employees worldwide, operated 500 factories inapprox. 100 countries and offered over 8,000 products to millions of consumersuniversally. The Companys transparent business practices, pioneering environmentpolicy and respect for the fundamental values of different cultures have earned it anenviable place in the countries it operates in. Nestls activities contribute to andnurture the sustainable economic development of people, communities and nations.

Nestls relationship with India dates back to 1912, when it began trading as TheNestl Anglo-Swiss Condensed Milk Company (Export) Limited, importing and sellingfinished products in the Indian market.

After Indias independence in 1947, the economic policies of the Indian Governmentemphazised the need for local production. Nestl responded to Indias aspirations by

forming a company in India and set up its first factory in 1961 at Moga, Punjab, wherethe Government wanted Nestl to develop the milk economy. Progress in Mogarequired the introduction of Nestls Agricultural Services to educate, advise and helpthe farmer in a variety of aspects. From increasing the milk yield of their cows throughimproved dairy farming methods, to irrigation, scientific crop management practicesand helping with the procurement of bank loans. Nestl set up milk collection centresthat would not only ensure prompt collection and pay fair prices, but also instilamongst the community, a confidence in the dairy business. Progress involved thecreation of prosperity on an on-going and sustainable basis that has resulted in not

just the transformation of Moga into a prosperous and vibrant milk district today, buta thriving hub of industrial activity, as well. For more on Nestl Agricultural Services.

OPERATIONSNestl has been a partner in India's growth for over nine decades now and has built avery special relationship of trust and commitment with the people of India. TheCompany's activities in India have facilitated direct and indirect employment and


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provides livelihood to about one million people including farmers, suppliers ofpackaging materials, services and other goods.

The Company continuously focuses its efforts to better understand the changing

lifestyles of India and anticipate consumer needs in order to provide Taste, Nutrition,

Health and Wellness through its product offerings. The culture of innovation and

renovation within the Company and access to the Nestl Group's proprietary

technology/Brands expertise and the extensive centralized Research and

Development facilities gives it a distinct advantage in these efforts. It helps the

Company to create value that can be sustained over the long term by offering

consumers a wide variety of high quality, safe food products at affordable prices.

Nestl India manufactures products of truly international quality under internationallyfamous brand names such as NESCAF, MAGGI, MILKYBAR, MILO, KIT KAT,BAR-ONE, MILKMAID and NESTEAand in recent years the Company has alsointroduced products of daily consumption and use such as NESTL Milk, NESTLSLIM Milk, NESTL Fresh 'n' Natural Dahi and NESTL Jeera Raita. Nestl

India is a responsible organization and facilitates initiatives that help to improve thequality of life in the communities where it operates.

PRESENCE IN INDIA

Beginning with its first investment in Moga in 1961, Nestls regular and substantialinvestments established that it was here to stay. In 1967, Nestl set up its nextfactory at Choladi (Tamil Nadu) as a pilot plant to process the tea grown in the areainto soluble tea. The Nanjangud factory (Karnataka), became operational in 1989, theSamalkha factory (Haryana), in 1993 and in 1995 and 1997, Nestl commissioned twofactories in Goa at Ponda and Bicholim respectively. Nestl India has commissioned in

2006 its 7th factory at Pant Nagar in Uttarakhand.

BRANDS

.MILK PRODUCTS AND NUTRITIONEVERYDAY DAIRY WHITENER

EVERYDAY GHEE

MILK

SLIM MILK

SILM MILK

NEVISTA PRO-HEART MILK

FRESH n NATURAL DAHI

FREAH n NATURAL SLIM DAHI

JEERA RAITA

NESVITA DAHI

MILKMAID FRUIT YOGHURT


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MILKMAID

MILKMAID FUNSHAKES

NIDO

BEVERAGES

NESCAFE CLASSICSUNRISE PREMIUM

SUNRISE SPECIAL

CAPPUCCINO

MILO SMART PLUS READYTO- DRINK

ICED TEA WITH GREEN TEA

NESTEA ICED TEA

PREPARED DISHES AND COOKING AIDS

MAGGI 2 MINUTE NOODLESVEG ATTA NOODLES

RICE NOODLES MANIA

CUPPA MANIA

SAUCES

PICHKOO

PIZZA MAZZA

MAGIC CUBES

BHUNA MASALA

COCONUT MILK POWDER

HEALTHY SOUPS

HEALTHY SOUP-SANJEEVNI

CHOCOLATES AND CONFECTIONERY

KIT-KAT

KIT-KAT CHUNKY

MUNCH

MUNCH POP CHOC

MILKYBAR

MILKYBAR CHOO

BAR-ONE

MILK CHOCOLATE

POLO

ECLAIRS


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MILKYBAR ECLAIRS

NESTLE & COMMUNITY

Nestl India has always focused on long term, sustainable and profitable growth and

helped communities around its factories to improve their quality of life in a similarmanner. Nestl Agricultural Services has used the experience gained by Nestl acrossthe world to set up a system of direct and efficient contact with the farmers. Companyveterinarians and agronomists supervise the milk routes and advise farmers on variousissues including proper feed for the herds. Milk storage facilities have been set up closeto the farmers. Veterinary services are provided free, and medicines provided atwholesale cost. The company assists farmers in artificial insemination programs fortheir cattle, provides subsidy and helps them in procuring loans.For more on NestlAgricultural Services.

IN NEWS

17.08.09:After PepsiCo and Coca-Cola India, chocolate majors Cadbury India andNestle India are now engaged in a bitter advertising war. With the launch of its newadvertising campaign for Munch, Nestle has directly taken on Cadbury Dairy Milks newhigh-voltage ad campaign titled Aaj Pehli Tarikh Hai. With the tagline Sirf Pehli TarikhKo Nahin, Kabhi Bi Kha Sakte Hai, Nestles combative advertising campaign directlymocks Cadburys brand proposition.

Similar battles were mostly fought between cola majors Pepsi and Coke in India.Now, Horlicks and Complan are engaged in a similar tussle. Companies mainly opt forcombative advertising technique to grab eyeballs. With its new ad, Nestle India wants

to dilute the brand proposition of Cadbury, said an industry analyst based in Mumbai.Currently, Cadbury leads the pack in the Rs 3,200-crore branded chocolate sector inIndia.

22.04.09; (ZURICH):Nestle, the world's biggest food group, reported aslowdown in core sales growth in the first quarter as a strong Swiss franc weighed,but reiterated its full year target despite the global slowdown. Nestle said it stillexpects 2009 organic sales growth of "at least approaching 5 per cent" compared toits long-term target of 5-6 per cent. Organic sales growth, which strips outcurrency effects and acquisitions, was 3.8 per cent in the first quarter, the company

said on Wednesday.Total sales slipped 2.1 per cent to 25.2 billion Swiss francs ($21.5 billion) from 25.7billion a year ago as the strong Swiss currency had a negative impact of 5.2 per cent.

RIDING OUT THE RECESSION?

Analysts have said the maker of Nescafe coffee, KitKat chocolate bars and Maggi soupwas well positioned to ride out the recession compared to its rivals due to its range ofproducts and wide geographical presence.


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REVENUECHF 109.9 Billion (2008)

OPERATING INCOME

CHF 15.68 Billion (2008)

PROFITCHF 18.04 Billion (2008)

Nutrition, Health & Wellness - NewProduct Development at NestlA Nestl case study

Page 1: IntroductionBusinesses operate in markets that are constantly changing. Consumer tastes and

expectations are always on the move. This case study examines a market-focused

innovation developed by Nestl. It explores the development of Maggi 'A Natural

Choice': a range of culinary (cooking) products that is primarily targeted at chefs.


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Nestl is the world's leading food company. Since it was set up by Henri Nestl 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 maintainthe balance of the digestive system. The company is a world leader in research and

development, and Nestl's scientists work in all areas to create healthier and more

nutritious foods. Maggi is an important brand for Nestl. 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.

Nestl FoodServices sells Maggi 'A Natural Choice' to wholesale distribution

companies, such as 3663 and Brakes, and Cash and Carry operators such as Booker,

who in turn supply chefs and the catering trade. The UK foodservice market is very

competitive. Companies must apply high standards to products and their nutritional

content to meet stringent food safety and labelling laws. In addition, members of the

public are becoming increasing knowledgeable and choosy about what they eat, as a


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result of food scares and an increase in food allergies, leading to even higher

specifications.

Market research

The Maggi brand experienced a decline in sales in the UK leading up to 2004. This wasbecause the product had come to be seen as uninteresting and old fashioned due to itsdehydrated format and flavour. The product failed to meet users' increasingrequirements for fresh tasting culinary aids.Maggi commissioned face-to-face qualitative research to get a deeper insight into chefand consumer views. Chefs were asked to discuss their requirements.

The results showed that consumerswere saying 'fresh is best'. However, the chefs' viewwas slightly different in terms of: 'My customers would like everything to be made fromscratch (i.e. made from basic raw ingredients), but I don't have the time and money todo this'. 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 similarcharacteristics. Chefs fitted into four main segments:The research showed a sizeable demand for Segment 3 - a target for Maggi 'A NaturalChoice' products. Brand proposition - the research defined a proposition for developing


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the new brand. This new proposition was to create a product with more natural qualitiesfor '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. Targetmarket-- Maggi 'A Natural Choice' target was to be 'chefs who aim to please'. Theirprime 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 notin business just to make money. Brand ambition - Maggi 'A Natural Choice' combinesthe goodness and taste of real ingredients with time and cost saving.

Research and development

Nestl's strength in product research and development makes it possible to developproducts to fit market requirements. Maggi is committed to providing cutting edgeproducts that chefs want, e.g. products with a lower salt content. These products arehigh quality and easy to use. The new products need a more natural taste while at thesame 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 freeand contains no artificial colours or flavours. The Maggi 'A Natural Choice' range hasclear and easy to understand nutrition and allergy information on all packaging to helpchefs understand what is in the products so they in turn can inform their customers. Therange is aimed at a variety of chefs. For example, two Maggi 'A Natural Choice'products widely used in school kitchens are:1. multi-use tomato sauces - this saves time vs using chopped tomatoes. The product ispre-reduced which means less wastage (the juice from chopped tomatoes makes upone third of a tin and is usually poured away) and also less cooking time as the productcan be used straight from the tin. It contains sunflower and olive oil and is pre-seasonedwith 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 servingcan 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%


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the key nutrients contained e.g. energy, protein, carbohydrates, sugars, fat, saturatedfats, fibre and sodium, salt equivalent labelling (if used on brand)

details of allergenic ingredients used.2. bouillons (i.e. stock or broth for soup and sauces produced by cooking vegetables,poultry, meat or fish in water, which is then strained) - using a paste or powder bouillon

is quicker than preparing stock from scratch and helps to provide a consistent, authenticflavour. They are easy to use, cost effective and there is no waste. Chefs prefer pastebouillon because they believe it dissolves better when added to water. Maggi pastebouillons are ideal for school catering because they are gluten free, contain no addedMSG, artificial colours or flavours, are made with sunflower oil and have less than 0.7gsalt per 100ml when made up. Bouillons are mainly used as a base to soups andsauces, as well as adding flavour to casseroles and stews.

New product development (innovation and

renovation)


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Each of Nestl's European factories is a centre of excellence that specialises indeveloping new areas of food technology. New paste bouillon research anddevelopment is carried out at an Austrian factory. The new Maggi 'A Natural Choice'paste bouillons are created and developed there. New product development involves anumber 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, recipesheets produced and sales presenters are designed to ensure a successful productlaunch.

Nestl | Nutrition, Health & Wellness - New Product Development at Nestl

Product launch

Launching to chefs is very different from the launch of a product for the retailenvironment. This is because it is not easy to communicate directly with chefs, as thistarget 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 suchas Catering Update and Caterer and Hotelkeeper carried advertising and promotionalmaterial. Eight page supplements were produced to get the message across. Theseappeared in the April and May editions of the magazines, along with ongoing features inthe wider press. Direct mailing of informative literature to chefs and other userssupported this. Promotions including providing opportunities at special events for chefsto sample new products were set up.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 'ANatural Choice' to caterers and chefs is effective. These companies use a ProductListing Order Form (PLOF), which is updated by negotiation in April and Septemberonly. It is imperative to ensure distribution takes place to meet these critical timelines.Wholesalers, together with cash and carry operators, were therefore given supportingpromotional material about the new products to coincide with the launch.


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Events

Other activities to develop young chefs run alongside Maggi 'A Natural Choice'advertising and promotional activity. Nestl FoodServices sponsors two majorprestigious events for chefs which involve using Maggi 'A Natural Choice' products. The

Nestl Toque d'Or competition is in its 18th year. Nearly every young chef dreams ofrunning their own restaurant. The challenge set is the task of designing a restaurantconcept and theme. This includes putting together an exciting menu. Teams of sixstudents work on this challenge.The other event is the Local Authority Caterers Association (LACA) School Chef of theYear award sponsored by Nestl FoodServices. This was launched to applaud the skillsof many unsung heroes - the school chefs who prepare the daily school dinners. Eachentrant has one and a half hours to cook a healthy, balanced main course and dessertwithin 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'sdaily food and nutrient intake. The government's Healthy Living blueprint encourages

school caterers to help pupils eat sensibly and adopt healthier lifestyles. The LACASchool Chef of the Year award recognises the important work going on in schoolkitchens throughout the UK. These awards, together with the launch of Maggi 'A NaturalChoice', are all part of Nestl's commitment to providing healthier menus within a busychef's time constraints.

Conclusion

The 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 developedproduct designed to give customers more of what they want.

Nestl-Maggi Frozen Foods: A Hot Idea for Frozen Food


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Some say that Julius Michal Johannes Maggi invented compressed Bouillon cubes

made from dehydrated meat or vegetable stock so that the impoverished citizens of his

native Switzerland could have an inexpensive method for making healthy soup.

Others claim that it was so that busy women, many of whom worked in his mill, could

make nutritious soups quickly.

Whatever drove Mr. Maggi to make that innovative breakthrough, millions of people,

in more than a hundred countries, are grateful. The Bouillon cubes were an instant

success and remain a testament to the founders genius. But when Nestl, who had

merged with Maggi in 1947, decided to develop a new frozen food product under the

Maggi name, it couldnt rely on the founder to contribute any great ideas so Nestl

turned to Synecticsworld.

Understanding that Nestl wanted a range of innovative frozen food products that met

the needs of the consumer while providing sufficient volume to ensure the factorys

profitability, Synecticsworld initiated an insight-based new product developmentproject. The session brought together the Maggi brand and product teams, factory

teams, and consumers to first explore the frozen food market, looking at subjects as

divergent as: History, Purpose, Functionality, Development and Direction.

The Synecticsworld-led session generated a wealth of valuable insights, most often

from the consumers themselves. Building on the truths and wisdom that flowed from

the meeting, Maggi was able to develop a new product that was launched soon after

and was well received by the marketplace.

Today Maggi offers a range of frozen foods; from their Mediterranean style BeefLasagna in Australia to delicious Chicken Barbeque or Chicken Oriental Hot Pockets

available in Germany and France.

Quite a leap from boiled meat cubes to 30-second microwave lunchesbut were sure

that innovator Julius Maggi would have approved.

nutrition product development of maggi

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