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ABOUT NESTLE

Nestl India is a subsidiary of Nestl S.A. of Switzerland. With seven factories and a large number of co-packers, Nestl India is a vibrant Company that provides consumers in India with products of global standards and is committed to long-term sustainable growth and shareholder satisfaction. The Company insists on honesty, integrity and fairness in all aspects of its business and expects the same in its relationships. This has earned it the trust and respect of every strata of society that it comes in contact with and is acknowledged amongst India's 'Most Respected Companies' and amongst the 'Top Wealth Creators of India'. Nestl's relationship with India dates back to 1912, when it began trading as The Nestl Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished products in the Indian market. After India's independence in 1947, the economic policies of the Indian Government emphasised the need for local production. Nestl responded to India's aspirations by forming a company in India and set up its first factory in 1961 at Moga, Punjab, where the Government wanted Nestl to develop the milk economy. Progress in Moga required the introduction of Nestl's Agricultural Services to educate, advise and help the farmer in a variety of aspects. From increasing the milk yield of their cows through improved dairy farming methods, to irrigation, scientific crop management practices and helping with the procurement of bank loans.Nestl set up milk collection centres that would not only ensure prompt collection and pay fair prices, but also instil amongst the community, a confidence in the dairy business. Progress involved the creation 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, but a thriving hub of industrial activity, as well. Nestl has been a partner in India's growth for over nine decades now and has built a very special relationship of trust and commitment with the people of India. The Company's activities in India have facilitated direct and indirect employment and provides livelihood to about one million people including farmers, suppliers of packaging 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 internationally famous brand names such as NESCAF, MAGGI, MILKYBAR, KIT KAT, BAR-ONE, MILKMAID and NESTEA and in recent years the Company has also introduced products of daily consumption and use such as NESTL Milk, NESTL SLIM Milk, NESTL Dahi. .

Nestl India is a responsible organisation and facilitates initiatives that help to improve the quality of life in the communities where it operates. Nestl processing units in India After nearly a century-old association with the country, today, Nestl India has presence across India with 7 manufacturing facilities and 4 branch offices spread across the region. Nestl Indias first production facility, set up in 1961 at Moga (Punjab), was followed soon after by its second plant, set up at Choladi (Tamil Nadu), in 1967. Consequently, Nestl India set up factories in Nanjangud (Karnataka), in 1989, and Samalkha (Haryana), in 1993. This was succeeded by the commissioning of two more factories - at Ponda and Bicholim, Goa, in 1995 and 1997 respectively. The seventh factory was set up at Pantnagar, Uttarakhand, in 2006. The 4 branch offices in the country help facilitate the sales and marketing of its products. They are in Delhi, Mumbai, Chennai and Kolkata. The Nestl India head office is located in Gurgaon, Haryana. Nestl S.A. announced the establishment of the first R&D Centre in India in 2010, a part of the global R&D network. The foundation stone for the new Centre was unveiled on 22nd of September, 2010, in Manesar, Haryana. Mr. Subodh Kant Sahai, Honourable Minister of Food Processing Industries, Government of India, was the Chief Guest for the ceremony. Also present at the ceremony were His Excellency Mr. Philippe Welti, Ambassador of Switzerland, Mr. Ashok Sinha, Secretary for Ministry of Food Processing Industries, Mr. Klaus E. Zimmermann, Global Head of R&D Centres, Nestl S.A., and Mr. A. Helio Waszyk, Chairman and Managing Director, Nestl India Limited. Mr. Zimmermann commented that the event not only marked Nestls continuing long-term commitment to R&D, but also celebrated the building of Nestls first R&D Centre in India. He mentioned that the R&D Centre would allow Nestl to offer consumers in India and beyond, the choice of tasty, healthy, and nutritious products. Mr. Waszyk emphasized that the Nestl Boards decision to establish an R&D Centre in India at the request of Nestl India, would be an additional competitive advantage. It would help accelerate the Companys growth and at the same time contribute towards reducing nutritional deficiencies in the country. Better nutrition for India is a perpetual challenge. It's meaning changes with the countrys stage of development, the degree of social awareness, and scientific consensus. The new Nestl R&D facility in India will help develop great tasting food solutions that are relevant for consumers in India, creating products that take the promise of taste and health to a broader economic and social section than ever before. It will also strengthen Nestls leadership in emerging markets and fortify Nestl Indias position as the leader in Nutrition, Health and Wellness. Ms. Shivani Hegde, Chairperson of R&D India and also Head of the Foods Business,

reiterates that Nestl India has always had Research and Development support from the Nestl R&D network across the world, and now, with the foundation being laid for the new R&D Centre in Manesar, the Company for part of its research, will benefit from a greater Indian-consumer focus. Having an R&D Centre close to the Nestl India Head Office will bring Research and Development closer to Businesses, and reflects the Nestl spirit of R&DBusiness partnership towards developing Winning concepts, suited to the local consumer. It will help Nestl R&D to bring out strong localised concepts that are in accordance with the Nestl Group thrust on affordable Nutrition, Health and Wellness. Ultimately, these concepts will not just be relevant for emerging markets like India, but could be transferred to Nestl worldwide. Mr. Simon Robertson, Head of R&D India, sees that the target to complete the building in 2012 is a challenging one, but one that the team is set to deliver. Work on the building is moving forward and day by day we see the progress on site as we start to create the latest R&D Centre. At the same time, we are also building bridges with local institutions and government bodies that will give us a deeper understanding of the products needed in India and to support our future development programmes."

What is INTEGRATED MARKETING COMMUNICATION? An approach to achieving the objectives of a marketing campaign, through a well coordinated use of different promotional methods that are intended to reinforce each other. As defined by the American Association of Advertising Agencies, integrated marketing communications " ... recognizes the value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines advertising, public relations, personal selling, and sales promotion and combines them to provide clarity, consistency, and maximum communication impact."

Maggi Noodles A LIGHT MEAL WHICH PROVIDES PLEASURE WHEN EATEN WITH BALANCE AND UNDERSTANDING MAGGI Noodles is a light meal to be enjoyed as part of a diversified balanced diet. It is constantly improving its nutritional profile by reducing salt and trans fatty acids and by adding essential Nutrients. In the last few years MAGGI Noodles has reduced over 27% salt per serve. The salt is in line with similar light meals eaten during the day as part of a balanced diet. The level of trans fats in MAGGI Noodles is below 0.2% of the product which is well within the recommendations of Indian Council of Medical Research, a premier government body. MAGGI Noodles do not contain any added MSG. MAGGI Noodles is a source of protein, calcium, Iron or fibre depending on whether you like Vegetable Atta noodles, or Multigrain noodles or Iron fortified Dumdaar noodles or Masala noodles. The balance between Protein, Carbohydrate and Fat is very similar to the recommendations made by Indian Council of Medical Research. PRODUCT OFFERING: Maggi comes in following variant:

MAGGI 2-Minute Noodles MAGGI Dumdaar Noodles MAGGI Bhuna Masala MAGGI Coconut Milk Powder MAGGI Cuppa Mania MAGGI HEALTHY SOUPS Maggi Magic CUBES MAGGI Masala-ae-Magic MAGGI Noodletz MAGGI Pazzta MAGGI Pichkoo MAGGI Pizza Mazza MAGGI Sauces MAGGI Vegetable Atta Noodles MAGGI Vegetable Multigrainz Noodles MAGGI Imli Pichkoo Sauce

KEYS TO SUCCESS Maggi has had the first mover advantage with respect to the Instant noodles segment in the Indian market. Continued innovation in terms of flavours and themes from an ordinary 2 minute bite to a healthy snack.

CRITICAL ISSUES AND CHALLENGES To sustain its growth and maintain its position as the leader in the Instant Noodles segment: Nissins Top Ramen and ITCs Sunfeast pasta have been eating into Maggi Noodles market share of the Instant Noodles Market. To be increasingly viewed as the preferred snack of Indians SWOT Analysis of Maggi as Brand Strengths Established Family Brand Strong Global Corporate Brand ( NIL ) Specialization in food processing category marketing and distribution in Urban market Presence of other product segments of food category : Dairy Products, Chocolate, Infant foods Pioneer and Leader so 1st mover advantage in Noodles, Sauce, Ketchups and Soup market. Nestle symbolization of warm, family & shelter. Research and Development Division in India.

Weakness Generic Brand to Noodles in India Low rural market presence constraints Uniform Brand for all food category Brand Proliferation

Opportunities Growing package and canned food market in India by 15% annually. High brand awareness of Indian consumer Other product category like Biscuits, Chips and Ready to Eat Market still unexplored. Opportunity to be substitute to other snacks category of food products.

Threats Competitors with long history in product category internationally like, Heinz Sauce and ketchups of Heinz Indian, Top Ramen in Noodle and Knorr Soups. Single product focused competitors like Heinz sauce and Wai Wai Noodles. Less Entry Barriers in the Market segment for product category ITCs strong base in Indian Market. Substitute Product to Product Segment.

Initial strategies Of Maggi Maggi faced a lot of hurdles in its journey to India. The basic problem the brand faced was Indian psyche. Initially the brand tried to position the Noodles in the platform of convenience targeting the working women. However, the sales of Maggi was not picking up despite of heavy Media advertising. And to overcome this, Nestle India Limited conducted a research. NILs promotions positioned the noodles as a convenience product for mothers and as a fun product for children. The noodles tagline Fast to Cook Good to Eat was also in keeping with this positioning. They promoted the product further by distributing free samples, giving gifts on return of empty packets, etc. They had an effective tagline communication.

PROMOTION TOOLS

ADVERTISING

Personal selling

Sales Promotion

Public Relation

Direct Marketing

Consistent, clear and compelling company and product messages

PRINT ADVERTISEMENT Maggi didnt focus heavily on print media during its launch since its initial target audience were mothers and kids. Some advertisements in the print media were used to highlight the convenience factor of Maggi. Maggis expenditure on print media was much lower compared to other media. GENERAL PROMOTION Events and Experiences: Holds the Online Maggie Recipe Challenge, wherein innovative recipes with Maggi Noodles as a base are invited. Winning entries are compiled into an e-cookbook which is published online. Celebrity endorsement: In the past, Maggi had associated itself with celebrities like Bollywood actress Priety Zinta. The reason being Maggi has always been the kids snack. The same is brought out and highlighted in the charms of Preity and her bubbly and vivacious zing, with which she portrays the brand that is Maggi.

Television & Radio: They have several television ads with the tagline Fast to cook, good to eat, just 2-minutes, taste bhi health bhi etc. These ads are telecasted on the commercial break of different kids and family oriented programs on different channels such as-Star Plus, Sony Entertainment TV, Cartoon Network, Pogo channel etc. Maggi has also launched Me and My Maggicampaign in commensuration of 25 years of Maggi in India. Similarly, Maggi ads are broadcasted between several radio programs to attract attention of more number of customers. TRADE PROMOTIONS Point of purchase advertising: Point-of-purchase advertising is any form of special display that advertises merchandise. As their main target is children, Maggi packs are usually placed in low counters, shelves or hung in twine baskets within their eye level. Because, children often influence purchases by pestering their parents to buy things on seeing them. SALES PROMOTIONS Objectives: Tools Exchange schemes Price-Off offers. Coupons. Scratch and win-offer Money back offer. To introduce new products To attract new customers and retain the old ones. To maintain sales of seasonal products. To meet the challenge of competition.

Retailers Sales promotion initiatives Maggi was distributed free in school and offices to promote trials. There were return gifts on empty packets. Nestle also started giving Maggi Fun book and stickers with funky animals facts. Public Relation The maggi club- Children under 14 were invited by press advertisement and distribution of leaflets to become a member of maggi club by sending logos cut from 5 empty maggi

wrappers. Maggi projected it as maggi clubbers are fun lovers and intended to use it as reference group. Benefits offered to maggi-clubbers were various games like Snap safari game. Cap and mask sets, travel India game, Disney today comic. To obtain each gift the member had to send 5 wrappers as purchase proof. Some special privileges were given to regular member time to time. Organized maggi school quizzes and sketching.

Result of PR Activity It helped in getting closer to regular customer. It boosted the sales of Maggi. It helped in making valuable direct marketing database.

Message Communication and feedback

SENDER: Message from NIL ENCODING: NIL Ad- Agency Creating the AD MESSAGE: the MAGGI-AD MEDIA: the NEWSPAPER, TV, INTERNET, etc. DECODING: Consumer read and assimilate the AD RECEIVER: Home, Office RESPONSE: Aware, Will buy, Will not FEEDBACK: Action from consumer to NIL NOISE: Distraction, not clearly receiving the message

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