Nestle India Ltd. has a diverse product portfolio consisting of milk products & nutrition, beverages, prepared dishes & cooking aids, and chocolates & confectioneries. The company has a wide range of products under each category, with some product lines like milk products having a greater depth than others like beverages. There is scope to increase depth for some product lines and trim lengths for others. The company also needs to address some brand issues like product confusion and duplication to improve further.
11. COMMENTS
LENGTH
⢠The length of product line is about 56 product. Some product-lengths are very short
(âNestlĂŠ Beveragesâ) and some are considerably long(e.g. Milk and Nutrition products).
⢠Can launch quite a few products in the short product-lengths.
Width
⢠All product-lines pertain to human food items only.
⢠Should launch products other than food varieties also.
Depth
⢠There are quite a few of products having less product-depths. Example â Kitkat ,Eclairs &Munch
⢠Where as some products are having a good product-depths.
Example : Maggi : Total 10 varieties.
⢠There are a lot of scope for developing depths on several products which will enhance both growth
and profitability.
⢠Should launch products other than food varieties also.
13. CONSUMERS/CUSTOMERS AND INFLUENCERS
Product Customer Influencer
Milk Products & Nutrition Infants, Family , Doctor, Celebrities.
Beverages Family, Children, Advertisements, Dealers.
Cooking Aids Employees, Youths, Children Advertisements, Time.
Chocolates & Confectionery Children, Youth, Family Advertisements, Celebrities.
14. SCOPE FOR IMPROVEMENT
1. Nestleâ can think of diversification.
2. Can go for increasing the product-lengths in some cases like
âPrepared dishes & Cooking Aidsâ and âBeveragesâ
3. Trim up the product-lengths in select cases like chocolates to
eliminate confusion.
4. Entry into the niche segment â less competition.
15. BRAND ISSUES
Confusion among the customers:
⢠MUNCH- CRUNCH
⢠Multi Flavours in KITKAT
⢠Veg - Non-Vegs in MAGGI
Duplicating the brands:
⢠KITKAT-KITCAT
⢠Milkmaid - Milkmade
Withdrawal of few products in 2006
These are NestlĂŠ Chocostick, NestlĂŠ Butter, and Dust Tea, which have been
discontinued from the market on the grounds that "they do not add value to the
Nestle India brandâ.
GM issues:
Nestle Indiaâs products like Maggi and infant foods were rejected on grounds of
GM issues.