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Nestle India: Siva Sivani Institute of Management
Nestle India: Siva Sivani Institute of Management
Nestle India
Brand Audit Report
PBM ASSIGNMENT
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Nestle company
Nestlé S.A. is the largest consumer packaged Goods Company in the world,
founded and headquartered in Vevey, Switzerland. Nestlé originated in a 1905
merger of the Anglo-Swiss Milk Company, which was established in 1866 by
brothers George Page and Charles Submitted
Page, and by:
the Farine
AmritLactée Henri Nestlé
Singhania
18063
Company, which was founded in 1866 by Henri Nestlé. The company grew
Ankit Singh 18064
significantly during the First World War and following the Second World War,
Bhawna Srivastava 18069
eventually expanding its offerings beyond its early condensed milk and18079
Hardy infant
formula products.
Nestlé is more than just the largest food and Beverage Company in the world.
Increasingly, Nestlé is becoming the world’s leader in nutrition, health and
wellness. From the start, nutrition has been at the core of our business.
However, today we place far greater emphasis on it – and on health and
wellness. Our Corporate Wellness Unit and the individual business units are
driving forces in bringing Good Food, Good Life to all our consumers.
The Nestlé brand portfolio covers practically all food and beverage categories:
milk and dairy products, nutrition (infant, healthcare, performance and weight
management), ice cream, breakfast cereals, coffee and beverages, culinary
products (prepared dishes, cooking aids, sauces etc.), chocolate and
confectionery, petcare, bottled water. Many brands have category leadership,
both globally and in local markets. Many have existed for several decades.
Some, like S.Pellegrino – the mineral water from Italy – and Nestlé Moça in
Brazil, are well over 100 years old.
The best-known global brands include Nescafé, Nestea, Maggi, Buitoni, Purina
and of course Nestlé itself. Other brands also sell in many countries – for
example, Milo, Nesquik, Nespresso, Kit Kat, Smarties, Polo, Friskies, Perrier
and Vittel. The total number of brands – including local brands – reaches into
several thousands.
Milk products and nutrition account for around 45 per cent of Nestlé India’s
total revenues. The Company’s beverage products generate 22 per cent of the
company’s total revenues, while prepared dishes and cooking aids generate
18 per cent, and chocolate and confectionery 15 per cent. Nestlé India has
over the years built strong brands like MAGGI, NESCAFE, CERELAC,
LACTOGEN, KITKAT and POLO.
Nestle is major player in many segments of the FMCG sector such as noodles
and sauces [MAGGI], instant coffee [NESCAFE] and weaning foods. Nestle
products are sold throughout India and are also exported to Russia, Hungary,
Japan, USA and Several other countries. These include certain international
products like Nescafe and Lactogen, as well as select culinary products to
meet the demand of the ethnic Indian population living abroad. For three
years in succession [from 1999-2000 to 2001- 2002], Nestle India was
recognized with the top Exporter Award for export of Instant Coffee, and for
export of all coffees to Russia and CIS Countries.
Product Product Information Packaging
MILK PRODUCTS
BEVERAGES
It is 100% Pure Instant Coffee
NESCAFÉ CLASSIC has the
unmistakable taste of 100% pure coffee
and is made from carefully selected
coffee beans picked from the finest
plantations, blended and roasted to
perfection. 100% coffee…100%
pleasure…..
NESCAFÉ SUNRISE Premium is an
Instant Coffee-Chicory mixture
(Coffee:Chicory = 70%:30%).
A fine blend of Arabica and Robusta
beans is specially granulated to
retain its fresh aroma and flavor,
giving you an incomparable coffee
experience.
Home Style
Creamy Chicken
Mixed Vegetable
Rich Tomato
Masala Noodles Soup
Chef Style
Cream Mushroom
Sweet sour tomato noodles
Tangy tomato vegetable
Palak Corn Soup
Chinese Style
Chinese Sweet corn chicken
Chinese Sweet corn vegetable
Chinese Hot & sour vegetable
Oriental Thai Noodles Soup
The first ever fortified taste enhancer that
can be used across different cuisines in
India. It is not a simple masala, but is
unique in that it efficiently enhances the
taste inherent in
the food ingredients already present. It is
specifically fortified with Iron, Vitamin A
& Iodine that are known to be widespread
deficiencies in India.
We have been making you laugh over
these years with our communication, over
an oft repeated line ‘It’s different’. Now,
it is your turn to make someone laugh, to
'Make a Difference'
So with MAGGI Sauces, "Hasao Khushi
Phelao, India ko Healthy Banao". Make a
Difference!'" Call 011-49750000^, joke
suno sunao & you have a chance to get
famous on radio, sauces bottles, internet
and IVR".
MAGGI Pichkoo is a small doy pack
which makes MAGGI Tomato ketchup
affordable to a host of new consumers.
Along with affordability, it's packaging
makes it easy to handle and carry. It's
endearing name, packing and great taste
evokes a resounding reaction....It's
different.
CHOCOLATES AND
CONFECTIONARIES
NESTLE BAR-ONE is has been re
launched with a delightful new taste &
exciting packaging. Nestle BAR-ONE is
a delicious combination of luscious
nougat caramel, & an intense choco layer.
Food is local
Nestlé’s success is based firmly on the concept that “food is a local matter“.
Although its products are available in virtually every corner of the world,
company doesn’t believe in a standard worldwide taste. On the contrary, they
go to considerable lengths to adapt their products to local consumers’ tastes.
These can vary widely, not only from country to country, but even inside a
country. To meet local needs, there are more than 10,000 Nestlé products.
Almost 500 factories in over 80 countries produce them. Different cultures,
different geographies, different needs, tastes, flavors and habits all influence
what consumers eat and drink.
Nestlé has built bonds with its customers by ensuring that its products are
available whenever they may need them; wherever they may be and however
they may want them.
The following are some of the strategies used by Nestle for market expansion:
• Availability of NESCAFE enhanced through an expansion of the vending
machine network.
• New consumption opportunities for chocolates and confectionery were
identified and developed in areas like railway platforms, college
canteens and major events.
• Nestle set up ‘Café Nescafe’ and ‘Coffee Corners’ across metros and
mini-metros.
Distribution strategy
Nestlé has developed distribution channels which ensure the availability of its
products to buy wherever and whenever the consumer wishes to purchase it.
Sales of confectionery depend heavily on its availability, with market research
showing that well over 60% of all purchases are made on impulse.
Consequently, Nestlé tries to supply as many outlets as possible - both
wholesaler and retailer channels.
Nestle Logo
The Nestlé Company is built on the foundation of very strong brands. Some
are global, others are regional, and many are local to a specific country.
Nestlé. Punch line: Good Food, Good Life
Nestle Uses four simple words to describe what they believe in and what they
offer to consumers around the world: “Good Food, Good Life“. Food and
beverages play an increasingly important role in people’s lives – not only
because of the enjoyment and social pleasure of eating together, but more
and more in terms of personal health and nutrition. Although it’s important,
nutrition is only one aspect of “Good Food, Good Life“. Consistent quality and
safety, as well as value-for-money and convenience, all play a part. Above all,
great taste is fundamental to their products and their consumers ‘appreciation
of good food.
Pricing
Nestle follows Multi Point Pricing Strategy.(Skimming and Single Pricing )
Affordable products
Ever since its launch in India in 1983, this brand has become synonymous with
noodles. The bright red and yellow colors of the packet with the brilliant blue
’2-minute Noodles’ printed on it has found a place on every kitchen.
Over the years, Maggi has grown as a brand and positioned itself as a ’Fast
to cook! Good to Eat!’ food product.
Well the history of this brand traces back to the 19th century when industrial
revolution in Switzerland created factory jobs for women, who were therefore
left with very little time to prepare meals. Due to this growing problem Swiss
Public Welfare Society asked a miller named Julius Maggi to create a vegetable
food product that would be quick to prepare and easy to digest. Julius, the son
of an Italian immigrant came up with a formula to bring added taste to meals
in 1863. Soon after he was commissioned by the Swiss Public Welfare Society,
he came up with two instant pea soups & a bean soup- the first launch of
Maggi brand of instant foods in 1882-83.Towards the end of the century,
Maggi company was producing not just powdered soups, but bouillon cubes,
sauces and other flavorings.
However in India (the largest consumer of Maggi noodles in the world!) it was
launched in 1980’s by Nestle group of companies. Maggi had merged with
Nestle family in 1947.
When launched it had to face a stiff competition from the ready to eat snack
segments like biscuits, wafers etc. Also it had other competitor the so called
’home made’ snacks which are till today considered healthy and hygienic.
Hence to capture the market it was positioned as a hygienic homemade
snack, a smart move. But still this didn’t work, as it was targeted towards the
wrong target group, the working women. Although the product was developed
for this particular purpose.
After conducting an extensive research, the firm found that the children were
the biggest consumers of Maggi noodles. Quickly a strategy was developed to
capture the kids segment with various tools of sales promotion like pencils,
fun books, maggi clubs which worked wonders for it. No doubt the ads of
maggi have shown a hungry kid saying ’’Mummy bhookh lagi hai’’ to which
his mom replies ’’Bas do minute!’’ and soon he is happily eating Maggie
noodles. The company could have easily positioned the product as a meal, but
did not, as a study had shown that Indian mentality did not accept anything
other than rice or roti as meal. They made it a easy to cook snack that could
be prepared in just two minutes.
The formula clicked well & maggi became a brand name. That’s precisely what
is required in making a product a brand The brand has grown to an estimated
200 crore & contributes to around 10% of Nestle India’s top line.
Facts
• The Indian noodles market is worth Rs 1,500 crore and is seen growing
at 15 to 20 per cent annually.
Which brand comes to your mind when you think of noodles
Cumulative
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Total 0 .0
Group Statistics
Unweighted Weighted
funloving 57 57.000
successfull 57 57.000
healthy 57 57.000
sofesticated 57 57.000
imaginative 57 57.000
innovative 57 57.000
delighting 57 57.000
trendy 57 57.000
funloving 57 57.000
Analysis Case Processing Summary
Total 0 .0
successfull 57 57.000
healthy 57 57.000
sofesticated 57 57.000
imaginative 57 57.000
innovative 57 57.000
delighting 57 57.000
trendy 57 57.000
funloving 57 57.000
successfull 57 57.000
healthy 57 57.000
sofesticated 57 57.000
imaginative 57 57.000
innovative 57 57.000
delighting 57 57.000
trendy 57 57.000
Total 0 .0
Analysis 1
Summary of Canonical Discriminant Functions
Eigenvalues
Function Canonical
Eigenvalue % of Variance Cumulative % Correlation
Wilks' Lambda
Function Canonical
Eigenvalue % of Variance Cumulative % Correlation
Function
1 2
Function
1 2
label Function
1 2
The survey among Knorr, Maggie and Top Ramen shows that the people think that Knorr is
sophisticated, healthy, exciting, and imaginative and that of Top Ramen is trendy where as that of
Maggie is fun loving, delightful & successful.
Fun loving, delighting and success these are the attributes which differentiates Maggie from other
brands.
Findings-
1- Most of the people (40%) think that Maggie is being preferred most by
consumers who come under the age of 15 to 20.
2- Male use Maggie more than females.
3- Maggie comes first to mind of most of the people (88%) when they are
asked about the brand which comes to their mind when they think of
noodles.Delete
4- “Me Aur Meris Maggie” is the most popular advertisement of Maggie
noodles which is preferred by 37%.
5- 2 minutes noodle jingle comes first to the mind of most of the customers
(56%) when they think of maggi noodles. Which shows its identity of
magi noodles as a product?
6- Maggi noodles preferred by most of the customers (89%) in its brand
category.
7- In absence of magi Knorr will be preferred by most of the customers
(42%) and then Top Raman (32%).
8- Most of the customer think, maggi out of the all available noodles in
India (Knorr soupy, Top Ramen) is most preferred (82%), having high
quality level (84%), its price is worth (79%), most recommended (82%),
give confidence to user (82%), give some unique feeling (58%) and give
full satisfaction (79%).
9- People want to buy Maggi noodles in future (65%), trust on this (84%),
feel it exciting (70%), fun loving (67%)and consider it as successful
(84%), healthy (56%), sophisticated (53%), Imaginative (56%),
innovative (47%) and delighting (67%).
10-Maggi Noodles give feeling of belongingness (77%) and trendy (63%)
more than its competitor.