Nutrition, Health & Wellness - New Product Development at Nestlé
A Nestlé case study

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Page 2: 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.

Four main segments

The results showed that consumerswere 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 don't have the time and money to do this'. 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:

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

Nestlé | Nutrition, Health & Wellness - New Product Development at Nestlé