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Nutrition, Health & Wellness - New Product Development at Nestle

Introduction Nestlé is the world's leading food company. In recent years it has focused on becoming a nutrition, health and wellness company. This is the idea of supporting people to lead healthier lives. Nestlé is home to a wide range of brands including Maggi. This is a brand that is aimed at chefs and the catering trade. This is called the 'foodservice' sector. Market research Nestlé found that sales of the Maggi brand had decreased. This was because the product was seen as old-fashioned. Nestlé market research found that the public wanted 'fresh' whilst chefs wanted a high quality product but where some of the work had been taken out of it. Chefs fit into four main market segments. These are: * top chefs, who invent and set new trends * chefs who aim to impress, using a few helpful products * chefs who aim to please and use a wider range of culinary aids * chefs who aim to satisfy, keeping costs as low as possible. Maggi 'A Natural Choice' was aimed at the third group. The 'brand proposition' was for a more natural product for the target market of 'chefs who aim to please'. The 'brand ambition' was to combine goodness and taste with time and cost savings. Research and development (R&D) The new product was developed with the help of Nestlé's R&D teams. It has less salt, and uses healthier oils. It has no artificial colours or flavours. It has clear nutrition information that chefs can pass on to customers. Two widely used products are multi-use tomato sauce and bouillons (stock). The sauce can be used instead of chopping tomatoes. It is more convenient and needs less cooking time. It is mainly used as pizza topping or as a pasta sauce. The paste bouillons are quicker than making stock from scratch. They are easy to use. There is less waste. Product development Each Nestlé R&D centre is expert on certain types of product. The paste bouillons, for instance, were made in Austria. The process...
Nutrition, Health & Wellness - New Product Development at Nestle
Introduction
Nestlé is the world's leading food company. In recent years it has focused on becoming a nutrition, health and wellness
company. This is the idea of supporting people to lead healthier lives. Nestlé is home to a wide range of brands
including Maggi. This is a brand that is aimed at chefs and the catering trade. This is called the 'foodservice' sector.
Market research
Nestlé found that sales of the Maggi brand had decreased. This was because the product was seen as old-fashioned.
Nestlé market research found that the public wanted 'fresh' whilst chefs wanted a high quality product but where some of
the work had been taken out of it. Chefs fit into four main market segments. These are:
* top chefs, who invent and set new trends
* chefs who aim to impress, using a few helpful products
* chefs who aim to please and use a wider range of culinary aids
* chefs who aim to satisfy, keeping costs as low as possible.
Maggi 'A Natural Choice' was aimed at the third group. The 'brand proposition' was for a more natural product for the
target market of 'chefs who aim to please'. The 'brand ambition' was to combine goodness and taste with time and cost
savings.
Research and development (R&D)
The new product was developed with the help of Nestlé's R&D teams. It has less salt, and uses healthier oils. It has no
artificial colours or flavours. It has clear nutrition information that chefs can pass on to customers. Two widely used
products are multi-use tomato sauce and bouillons (stock). The sauce can be used instead of chopping tomatoes. It is
more convenient and needs less cooking time. It is mainly used as pizza topping or as a pasta sauce. The paste
bouillons are quicker than making stock from scratch. They are easy to use. There is less waste.
Product development
Each Nestlé R&D centre is expert on certain types of product. The paste bouillons, for instance, were made in Austria.
The process involves:
* A R&D brief - a written statement of what is needed.
* Samples being made and tasted.
* Feedback, which can be acted on to make the product better.
* Sign off. This is the point when all the team are happy.
Product launch
Chefs are busy people, so it is hard to reach them. Nestlé used trade magazines over 6-8 weeks before the launch.
Chefs also received direct mail. They got the chance to sample products at special events. Nestlé also used
competitions, some aimed at young chefs. It sponsors the 'School Chef of the Year Award'. This is important since
schools provide around 30% of children's daily food needs.
Conclusion
Maggi 'A Natural Choice' was a result of research to give customers more of what they want in a healthy, convenient
product. Its launch was planned and was a success. It has been added to Nestlé's other well-known brands.
Nestlé Brief Case Study
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