New Product Launches

NEW PRODUCT LAUNCHES
To put all the product launches into perspective, Nestle now has 80
products including various flavours and variants this awesome list of
80 products for most companies is an overfull palate. Nestle India
Ltd. still has a variety of new products in the pipelines. It believes in
slowly colonizing as much territory as fast as it can, adapting to
native conditions and then work at 'Holding off the advancing herds'.
Nestle products can be broadly classified into 5 main ranges:
 Milk Product
 Chocolate and Confectionery
 Beverages
 Culinary
 Food Service.
Milk Products
This category which comprises of condensed milk, baby milk foods,
milk powders, acidified infant food, and other milk products, showed
a slump in 1996 as sales of milk products fell from Rs. 31.4 crores in
1995 to Rs. 31.2 crores in the said year. Consumer off take remained
depressed throughout this year as a consequence of high price
increases necessitated by substantial increases (+ 50%) in the cost of
basic raw materials (fresh milk), over the past two year.
However Nestle retained its leadership in the infant food market with
Cerelac Lactogen and Nestum and even introduced a new flavor of
Cerelac-Cerelac Rice in 1996.

Chocolates and Confectionery
Nestle pursues the objective of accounting for one in every three
rupees in its sales figures through chocolates and confectionery. This
has thus been one of the thrust areas in Nestle. Nestle this year
widened its range of flavors in POLO, backed by its tre mendous
success in the Indian Market by adding POLO Spearmint to its
Portfolio. This new flavor has also received an encouraging response
in the market according to market analysts.
Milkybar also retained its position as the number one white chocolate
brand in India, however it did not record a significant increase in
sales, as a majority of Indian tastes still do not accept this flavor.
This year however, was a year of tremendous success for Kit Kat. This
internationally renowned brand gained a large incre ase in the Market
share in the past year and Nestle officials are hopeful that this will
further increase in the coming years. However this brand along with
its success has brought with it its share of Controversy as the Union
of India has launched a Litigation against the Kit Kat family pack.
In 1997 Nestle added to its range of confectionery by introducing
SPLASH, "A soft hearted, hard boiled sweet" this is being promoted as
a sweet unique to India and is positioned to a target audience in the
age group of 4 to 12 years and "anyone with a soft heart" is a

potential customer. Priced at Rs. 1 for a 7.5 -gram candy Splash has
been introduced selectively in the South and has been speculated to
repeat Polo's performance. Nestle's officials claim that this candy has
the potential to grab a quarter of the 700 crores confectionery
market.
The most recent of Nestle affairs with the confectionery market has
been the introduction of Mithai Magic, which is "a little Mithai, a little
magic." This new product was launched in September 1997, in time
for the Diwali purchases of sweets. This brand has been positioned
somewhere between chocolates and traditional sweets and the
company is employing a push strategy to promote this brand.
The latest launch of Nestle in the Chocolate and confectionery division
is Charge.
Beverages
This year has been very successful in the beverages market for
Nestle. The sales of beverage have increased from Rs. 323.3 crores in
1995 to Rs. 398.8 crores in 1996.
Nestles Flagship Nescafe, which was pegged at Rupees 1040 per
kilogram before the launch of Tata Cafe, met with stiff competition
from Tata Cafe priced at Rupees 550 per Kg., once it was introduced.
Tata cafe claimed to have garnered a market share of 17% by
December 1996. This forced Nestle to cut prices of Nescafe to Rupees
840 per Kg. However Nescafe still retains 83% market share in the
Rs. 177 Crores market for pure instant coffee.
Nestle Sunrise also showed an increase in sales and captured 20% of
the Rs. 253 crores market in Mixed instant coffee.
This year Nestle also launched MILO, an internationally renowned
chocolate energy drink, and the response for this has been
encouraging.
Nestle has introduced Tasters Choice tea bag pitched against Taj
Mahal Tea bags.
Culinary Products
The market in culinary products had witnessed a high growth

consequent to aggressive pricing decisions on existing products and
the introduction of a variety of new products to match the needs of
the Indian Housewife. Encouraged by this success Nestle laun ched
Maggi Macoroni Snack in three flavors-Chicken, Masala and Tomato.
Nestle official’s say that this would consolidate Maggis position as the
number 1 culinary brand in India. The product focuses on convenience
and innovation as its Unique Selling Proposition. This snack has
opened a new segment for the maggi brands. The brand is positioned
as Youthful and is represented by the twists and curls of the

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NEW PRODUCT LAUNCHES

products including various flavours and variants this awesome list of

80 products for most companies is an overfull palate. Nestle India

Ltd. still has a variety of new products in the pipelines. It believes in

slowly colonizing as much territory as fast as it can, adapting to

Nestle products can be broadly classified into 5 main ranges:

 Chocolate and Confectionery

This category which comprises of condensed milk, baby milk foods,

depressed throughout this year as a consequence of high price

increases necessitated by substantial increases (+ 50%) in the cost of

Cerelac Lactogen and Nestum and even introduced a new flavor of

Cerelac-Cerelac Rice in 1996.

Nestle pursues the objective of accounting for one in every three

rupees in its sales figures through chocolates and confectionery. This

widened its range of flavors in POLO, backed by its tre mendous

success in the Indian Market by adding POLO Spearmint to its

Portfolio. This new flavor has also received an encouraging response

in the market according to market analysts.

brand in India, however it did not record a significant increase in

sales, as a majority of Indian tastes still do not accept this flavor.

internationally renowned brand gained a large incre ase in the Market

In 1997 Nestle added to its range of confectionery by introducing

a sweet unique to India and is positioned to a target audience in the

age group of 4 to 12 years and "anyone with a soft heart" is a

been introduced selectively in the South and has been speculated to

the potential to grab a quarter of the 700 crores confectionery

magic." This new product was launched in September 1997, in time

somewhere between chocolates and traditional sweets and the

company is employing a push strategy to promote this brand.

The latest launch of Nestle in the Chocolate and confectionery division

1995 to Rs. 398.8 crores in 1996.

Nestles Flagship Nescafe, which was pegged at Rupees 1040 per

December 1996. This forced Nestle to cut prices of Nescafe to Rupees

Rs. 177 Crores market for pure instant coffee.

Nestle Sunrise also showed an increase in sales and captured 20% of

the Rs. 253 crores market in Mixed instant coffee.

This year Nestle also launched MILO, an internationally renowned

Mahal Tea bags.

The market in culinary products had witnessed a high growth

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