CASE ANALYSIS

Nestle Case Analysis

Table of Contents

Introduction3

Company Analysis3

Objective Analysis5

Situation Analysis5

Define the Product / Competition5

Analyze the Category6

1. Aggregate Market Factors6

2. Category Factors7

Nissin Top Ramen & Cup O' Noodles9

3. Wai Wai Noodles9

4. Company & Competitor Analysis11

Pricing12

Place12

Promotion13

5. Expected future strategies13

6. Customer Analysis14

Positioning15

7. Assumptions in Planning Process15

Forecast Assumptions16

8. PRODUCT STRATEGY - Customer Targets16

9. CUSTOMER PRODUCT PERCEIVED17

Core Strategy Value Proposition18

Product Proposition18

Strategy Marketing Programs19

Sales Promotion20

Pricing Strategy21

Price Discrimination22

Research23

Contingency Plans24

Consumer Health Awareness24

Consumer Taste Preference25

Increased Competition25

Financials26

References28

Introduction

Nestle India Ltd. (NIL), the Indian subsidiary of the global FMCG major, Nestlé SA, introduced the Maggi brand in India in 1982, with its launch of Maggi 2-Minute Noodles, an instant noodles product.1By launching Maggi noodles, Nestle created an entirely new food segment - instant noodles - within the larger category of Indian packaged food market. Nestle gained the First-mover advantage, and has successfully managed to retain its leadership in the instant noodles category.

Later, NIL extended the Maggi brand-name to a variety of culinary products like soups, sauces and ketchups, and condiments. However, these extensions of the brand were not as successful as the instant noodles. More recently, Nestle has tried to give a 'healthy' bent to products under its Maggi brand, in a bid to attract health-conscious consumers.

Company Analysis

Nestlé is the world's biggest food and beverage company. It wants to be known as a 'Respected, Trustworthy, Food, Nutrition, Health and Wellness Company'. Its actions are guided by a series of business principles.

Market research by Nestlé showed that its customers have a genuine and growing interest in information about its brands. In particular, consumers want more information about what they eat and drink. They felt this information should be supplied as part of the product.

This case study shows how market research has helped Nestlé to exercise corporate responsibility. It has done this by promoting healthy eating. The company played an important role in the development of 'Guideline Daily Amounts' (GDAs). These were developed by the Institute of Grocery Distribution (IGD), a trade association. Leading manufacturers and retailers, including Nestlé, took part.

Nutritionists and scientists provided the details of the nutrients that the average person needs to consume each day. The GDAs were produced in line with published government recommendations. Having developed the guidelines, the next step was the most difficult. Consumers wanted the information in a form they could easily understand. So the GDAs were added in a visual form to the front of packs. This meant that consumers could easily understand and use the information.

The symbols were designed to show the amount of calories, sugars, fat, saturates and salt in products. The consistent use of these symbols helps consumers to understand the GDAs. This means they can make choices quickly and easily about their daily diets.

Placing the GDA symbols on the front of packaging is a powerful tool. It gives consumers the information they need immediately. This also supported the market research data which showed that consumers' buying habits were influenced by a desire to eat healthily.

Objective Analysis

By undertaking this study, we intend to look at the various phases in the product life cycle of ...