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Nestle Maggi-A Success Nestle Butter - A Failure

Nestle Maggi was a success in India while Nestle Butter was a failure. Maggi holds approximately 85% of the market share for noodles in India since its launch in 1983. It was initially targeted at working women but later repositioned towards kids through creative advertising. In contrast, Nestle Butter launched in 2001 struggled due to issues with its supply chain and strong competition from established brands like Amul.

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342 views20 pages

Nestle Maggi-A Success Nestle Butter - A Failure

Nestle Maggi was a success in India while Nestle Butter was a failure. Maggi holds approximately 85% of the market share for noodles in India since its launch in 1983. It was initially targeted at working women but later repositioned towards kids through creative advertising. In contrast, Nestle Butter launched in 2001 struggled due to issues with its supply chain and strong competition from established brands like Amul.

Uploaded by

bhawna mahajan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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NESTLE MAGGI- A SUCCESS

NESTLE BUTTER- A FAILURE

PRESENTED BY-
ARSHI AZEEM (83)
BHAWNA MAHAJAN (98)
MOHD. SAIF (110)
SHIVANSH SHOURIE (113)
NESTLE INDIA
NESTL INDIA

Nestl India is a public listed company with Market


Capitalization INR 402 bn (7.1 bn CHF).

Nestl's relationship with India began in 1912, at


first they use to import and sell finished products in
the Indian market.

In 1961, Nestle set up its first factory in Moga,


Punjab.

Head office is located in Gurugram, Haryana.

Nestle India today has 8 factories across the


country. Quality is the core value that unites them.
NESTLE MAGGI

In India Maggi was launched in 1983.


Maggi holds approximately 85% of the market share
although in first 25 years it held more than 90% of the
market share.
Maggi noodles contribute over 20% to Nestle Indias
revenue.
Initially targeted towards working women but had to shift
towards kids as the idea did not succeed.
Maggis success is highly dependent on its creative
advertisement and promotional campaigns.
NESTLE BUTTER

Launched in Mumbai and Pune in July 2001.


Offered 100gm variant for Rs.14 and 500gm variant for
Rs.65.
For the Northern market, produced in Moga and Samalkha
(Haryana).
Proposed tie up with Dynamix Dairy Industries Ltd. to
capture the southern market.
The 40000 tonne annual table butter market was
dominated by Amul which accounts for over 30000 tonnes
of this.
POLITICAL FACTORS

The choice of the factory location (Moga) was


dictated by the government because the then
dispensation, steered by the socialist idealism
of Indias first PM, wanted Nestle to develop the
milk economy of Punjab.
ECONOMIC FACTORS(BUTTER)
When Nestl India set up its first manufacturing plant in
Moga in 1961, the local milk economy was virtually non
existent.
Nestl has set up milk collection centres that ensures prompt
collection and pays fair prices, transforming Moga into a
prosperous and vibrant milk district.
Furthermore farmers are paid monthly, guaranteeing them a
regular income that would not be possible with seasonal
crops.
Since there is continuous demand from Nestl for milk
throughout the year, their occupations are stable ones,
assuring them of long term relationships and fair prices.
The failure of the supply chain was the factor which lead to
failure of Nestle Butter.
Strong competition by large market share holders like Amul
lead to limited market share growth for Nestle Butter.
ECONOMIC FACTORS(MAGGI)

Nestle launched Maggi in various price ranges


starting from Rs.5 which made it economic and
affordable for the masses.
Because of strong supply chain, maggi was easily
available in every part of India, even in extreme
locations.
SOCIO CULTURAL FACTORS

Initially nestle tried to position the maggi noodles in


the platform of convenience targeting the working
women. But it found that the sales are not picking up
despite heavy promotion.

The company then applied the repositioning strategy


and repositioned the brand towards the kids using
sales promotion and smart advertising.

Positioned themselves as Healthy Fast Food and used


the slogan "2 minutes noodles".

Jain maggi, this helped them to gain a completely


unconquered market of Jain noodle eaters.
SOCIO CULTURAL FACTORS

Another reason for the failure of Nestle butter was that


the salt content of the table butter launched was not as
per the expectations of the market and hence the
product was not well accepted in the market.
Nestle launched 2 new variants of maggi i.e. Atta
noodles and Oat noodles which targeted the health
conscious segment of noodle eaters.
Through advertisements and unique taglines, Nestle has
always tried to touch the sentiments of the consumers.
(Ex- Taste bhi Health bhi, Maggi Mom, Ghar ka Swad).
TECHNOLOGICAL FACTORS

Nestl invests around CHF 1.5 billion in Research and Development every
year. Uses 3R technology: Reduce, Reuse and Recycle.

Through continuous innovation of new products and renovation of existing


products, Nestl is creating and enhancing hundreds of Nestl products,
especially in terms of their nutritional benefits.

Its the task of our Research & Development (R&D)to apply nutritional
science and expertise to create products that combine great taste with
nutritional benefit

Mission- we believe that research can help us make better food so that
people live a better life.

Our science-based nutritional research and expertise are driving


nutritional innovations. One example is our Branded Active Benefits
(BABs).

Food safety is the highest priority at Nestle. Nestle India works with 11
internal and external laboratories to monitor and ensure food safety.

Using technology Nestle has developed and implemented NQMS(Nestle


Quality Management System) and NQAC(Nestle Quality Assurance
Centre).
ENVIRONMENTAL FACTORS
They invest an average of CHF 100 million* each year for the
protection of the environment in our factories.
Their aim is to maximise the production of goods while
minimising consumption of resources.
Nestle pioneered the Clean Development Mechanism which is
part of the Kyoto Protocol- an agreement to control CO2
emissions to combat global warming.
Nestle was the first company to introduce a new biodegradable
alternative to plastic for manufactured food products.
It is made from renewable resources, it dissolves when it comes
into contact with water, and disintegrates within three months.
CONTD..
LEGAL FACTORS
It strictly comply with all the rules and regulations.
Participate in discussions on food legislation and
regulation between international organisations and
governments.
THANK YOU !

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