Nutrition, Health & Wellness New Product Development at Nestl

01_Introduction
Businesses operate in markets that are constantly changing. Consumer tastes and expectations are always on the move. This case study examines a market-focused innovation developed by Nestl. It explores the development of Maggi A Natural Choice: a range of culinary (cooking) products that is primarily targeted at chefs.
Nestl is the worlds leading food company. Since it was set up by Henri Nestl to provide an infant food product, it has been associated with providing high quality, customer and consumer focused products. In recent years it has focused on becoming a nutrition, health and wellness company. Wellness is about supporting people to live more healthy lives e.g. through the development of probiotic yoghurts that help maintain the balance of the digestive system. The company is a world leader in research and development, and Nestls scientists work in all areas to create healthier and more nutritious foods. Maggi is an important brand for Nestl. It is a global brand widely recognised as a consumer and foodservices brand in continental Europe. In the UK, Maggi consists of a range of culinary aid products that are exclusively available to the catering trade (known as foodservice) - primarily to chefs. Maggi 'A Natural Choice' is a new development that is unique to the UK. Nestl FoodServices sells Maggi A Natural Choice to wholesale distribution companies, such as 3663 and Brakes, and Cash and Carry operators such as Booker, who in turn supply chefs and the catering trade.
Large wholesalers Maggi A Natural Choice Chefs and other end users Cash & Carry

The UK foodservice market is very competitive. Companies must apply high standards to products and their nutritional content to meet stringent food safety and labelling laws. In addition, members of the public are becoming increasing knowledgeable and choosy about what they eat, as a result of food scares and an increase in food allergies, leading to even higher specifications.

02_Market research
The Maggi brand experienced a decline in sales in the UK leading up to 2004. This was because the product had come to be seen as uninteresting and old fashioned due to its dehydrated format and flavour. The product failed to meet users increasing requirements for fresh tasting culinary aids. Maggi commissioned face-to-face qualitative research to get a deeper insight into chef and consumer views. Chefs were asked to discuss their requirements. The results showed that consumers were saying fresh is best. However, the chefs view was slightly different in terms of: My customers would like everything to be made from scratch (i.e. made from basic raw ingredients), but I dont have the time and money to do this.

Maggi (the master brand)

Maggi A Natural Choice Culinary Aids

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The research revealed that the market was divided into a number of segments. A segment is a part of an overall market made up of customers with similar characteristics. Chefs fitted into four main segments:

Brand ambition Maggi A Natural Choice combines the goodness and taste of real ingredients with time and cost saving.

Segment

Chefs who innovate Only use fresh ingredients and are seen to be the ones who set the new trends.

Two main strategies to deliver this ambition were implemented in 2005: 1. To develop and launch a

Segment

Chefs who aim to impress Some use of culinary aids where absolutely necessary. Pride themselves in high quality, impressive results.

relevant profitable range of convenient natural tasting culinary aids. 2. To reposition Maggi as the more natural tasting culinary aid brand.

Segment

3
MAGGI A NATURAL CHOICE KEY TARGET

Chefs who aim to please Wide use of culinary aids. Making money is not their only motivation. (Customers would love everything to be made from scratch but I dont have the money to do this).

03_Research and development

Nestls strength in product research and development makes it possible to develop products to fit market requirements. Maggi is committed to providing cutting edge products that chefs want, e.g. products with a lower salt content. These products are high quality and easy to use. The new products need a more natural taste while at the same time offering value for money. The Maggi A Natural Choice range is now lower in salt and made using sunflower oil. In addition, where possible the range benefits from having no added MSG, is gluten free and contains no artificial colours or flavours. The Maggi A Natural Choice range has clear and easy to understand nutrition and allergy information on all packaging to help chefs understand what is in the products so they in turn can inform their customers. The range is aimed at a variety of chefs. For

Segment

Chefs who aim to satisfy Driven by cost not quality. (Seek to make maximum profit or work to minimum cost).

The research showed a sizeable demand for Segment 3 a target for Maggi A Natural Choice products.

Brand proposition the research defined a

proposition for developing the new brand. This new proposition was to create a product with more natural qualities for chefs who aim to please who want their cooking to be as fresh tasting as possible. Natural qualities would be defined in terms of taste, smell, look and texture. Target market - Maggi A Natural Choice target was to be chefs who aim to please. Their prime aim is to provide delicious, wholesome foods that customers enjoy. These chefs enjoy their work and have a pride in the satisfaction they give customers. They are not in business just to make money.
Brand Proposition for Maggi 'A Natural Choice' Great tasting culinary aids for chefs who aim to please by providing great taste and more natural results.

example, two Maggi A Natural Choice products widely used in school kitchens are:

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Targeted at Chefs who want to provide delicious wholesome foods that customers enjoy.

multi-use tomato sauces bouillons (i.e. stock or broth for soup and sauces
produced by cooking vegetables, poultry, meat or fish in water, which is then strained).

1. Multi-use tomato sauce this saves time vs using chopped tomatoes. The product is prereduced which means less wastage (the juice from chopped tomatoes makes up one third of a tin and is usually poured away) and also less cooking time as the product can be used straight from the tin. It contains sunflower and olive oil and is pre-seasoned with basil and oregano so it can be used straight from the tin. The sauce is mainly used as a pizza topping or a pasta sauce as well as in soup and casseroles, and one serving can contribute to one of the suggested five portions of fruit and vegetables per day. Maggi also uses easy to understand labels showing nutritional and other information. For example, the multi-use tomato sauce label states: there are no added colours or artificial flavours there is a low fat content the salt and sugar content has been reduced by 25% the key nutrients contained e.g. energy, protein, carbohydrates, sugars, fat, saturated fats, fibre and sodium, salt equivalent labelling (if used on brand) details of allergenic ingredients used.

1. Research and Development Brief the factory is provided with a clear written product brief. Maggi A Natural Choice paste bouillons brief was based on the new brand proposition. The brief gives full product specifications, including salt content, fat type and any specific dietary needs such as gluten free. The final price range for the product is also given.

2. Creation of samples and tasting - food technologists develop a variety of kitchen samples, which are then tasted by a panel of specialists.

3. Feedback and observations - results of the product testing are reported to the factory as part of an interactive process. Any changes needed are incorporated into further samples.

4. Sign off - when everybody is happy, an agreement on the samples is confirmed. Prices are agreed. The factory then produces a trial production of approximately 1 tonne before going into full scale production. At the same time front labels are designed, product photography commissioned, recipe sheets produced and sales presenters are designed to ensure a successful product launch.

2. Paste bouillons using a paste or powder bouillon is quicker than preparing stock from scratch and helps to provide a consistent, authentic flavour. They are easy to use, cost effective and there is no waste. Chefs prefer paste bouillon because they believe it dissolves better when added to water. Maggi paste bouillons are ideal for school catering because they are gluten free, contain no added MSG, artificial colours or flavours, are made with sunflower oil and have less than 0.7g salt per 100ml when made up. Bouillons are mainly used as a base to soups and sauces, as well as adding flavour to casseroles and stews.

05_Product launch
Launching to chefs is very different from the launch of a product for the retail environment. This is because it is not easy to communicate directly with chefs, as this target market is made up of busy people who work unsociable hours. Publicity in the press started 6-8 weeks before the launch. Selected trade media such as Catering Update and Caterer and Hotelkeeper carried advertising and promotional material. Eight page supplements were produced to get the message across. These appeared in the April and May editions of the magazines, along with ongoing features in the wider press. Direct mailing of informative literature to chefs and other users supported this. Promotions including providing opportunities at special events for chefs to sample new products were set up.

04_New product development (innovation and renovation)

Each of Nestls European factories is a centre of excellence that specialises in developing new areas of food technology. New paste bouillon research and development is carried out at an Austrian factory. The new Maggi A Natural Choice paste bouillons are created and developed there.

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New product development involves a number of important stages. To give an idea of timescale, the development process for paste bouillons took 6 months:

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Maggi works closely with the main FoodServices wholesalers (3663 and Brakes) and Cash and Carry operators (e.g Booker). This ensures that distribution of Maggi A Natural Choice to caterers and chefs is effective. These companies use a Product Listing Order Form (PLOF), which is updated by negotiation in April and September only. It is imperative to ensure distribution takes place to meet these critical timelines. Wholesalers, together with cash and carry operators, were therefore given supporting promotional material about the new products to coincide with the launch. Other activities to develop young chefs run alongside Maggi A Natural Choice advertising and promotional activity. Nestl FoodServices sponsors two major prestigious events for chefs which involve using Maggi 'A Natural Choice' products. The Nestl Toque dOr competition is in its 18th year. Nearly every young chef dreams of running their own restaurant. The challenge set is the task of designing a restaurant concept and theme. This includes putting together an exciting menu. Teams of six students work on this challenge. The other event is the Local Authority Caterers Association (LACA) School Chef of the Year award sponsored by Nestl FoodServices. This was launched to applaud the skills of many unsung heroes the school chefs who prepare the daily school dinners. Each entrant has one and a half hours to cook a healthy, balanced main course and dessert within a strict budget. The meal must appeal to 11 year old pupils.

This is an important competition since schools provide an estimated 30% of childrens daily food and nutrient intake. The governments Healthy Living blueprint encourages school caterers to help pupils eat sensibly and adopt healthier lifestyles. The LACA School Chef of the Year award recognises the important work going on in school kitchens throughout the UK. These awards, together with the launch of Maggi A Natural Choice, are all part of Nestls commitment to providing healthier menus within a busy chefs time constraints.

06_Conclusion
The Maggi A Natural Choice range is designed to combine chefs requirements for tasty wholesome food with consumers requirements for more nutritionally balanced, healthier meals. Maggi A Natural Choice is a carefully researched and developed product designed to give customers more of what they want.

GLOSSARY OF TERMS

Brand: an identifying symbol, word or mark that differentiates a product or company from its competitors.

Gluten: a protein contained in certain cereals (e.g. wheat) which can induce coeliac disease in susceptible individuals, who then require a gluten

Brand proposition: a compelling and differentiated reason for the target user to choose the brand.

free diet.

Reposition: alter a product and its marketing so Cash and carry: wholesale warehouse where retailers pay by cash to take products away. that people see it in a new way.

Category: a group of products that fulfil the same needstate.

Strategy: a plan.

Dehydrated: products that have had the water content removed for longer and easier storage.

Target market: a particular part of the overall market that a product is aimed at.

For more information about Nestl please browse:

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www.nestle.co.uk www.nestlefoodservices.co.uk