Assignment I: Plot the sales data of a product/brand (your own choice) in a

yearly/Quarterly/monthly basis over a significant period of time (say at least a decade)

to observe changes in the curve. Analyze how the sales have changed over the period.
Explain the reason behind the change by gathering market information through
primary/secondary sources.
Introduction

NESTL INDIA LIMITED

Nestl has been in India for over 100 years. Nestls relationship with India began in 1912. It
was then importing and selling its brands as finished products in the Indian market. After
independence in 1947, India gave voice and defined its economic policies. Nestl responded
to Indias aspiration for growth. In 1961 Nestl set up its first factory in Moga, Punjab. Over
the years it has continued investing in India, setting up more factories and expanding existing
ones. Nestl activities in India have facilitated direct and indirect employment and provides
livelihood to lakhs of people including farmers, suppliers of packaged materials, services and
other goods. Nestl has all along followed stringent quality standards and has continuously
transferred its expertise and technology to suppliers, to help them upgrade quality to meet
these standards.
Over the past 33 years, MAGGI has become the most trusted and valuable food brand in
India manufactured by Nestle India. As per its annual reports net sales year wise are shown in
Figure1 and its graphical representation.
Year
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006

Net Sales (Rs. In Million)

81232.7
98062.7
90619
83022.6
74908
62974
51672
43581
35131
28367
Fig: 1 Net Sales Year Wise

Source: Annual Reports (Nestle.in/investors/stock and financials/annual reports)

Net Sales (Rs. In Million)

120000
100000
80000
Net Sales (Rs. In Million)
60000
40000
20000

2015 2014 2013 2012 2011 2010 2009 2008 2007 2006

Analysis
*Net sales have increased by 24.4% in the year 2007 as compared to year 2006 net sales.
Reason: The pioneering concept of Taste Bhi, Health Bhi was further strengthened as the
business launched more products that offer health and wellness. After the very successful
launch of MAGGI Vegetable Atta Noodles in the previous year, the business leveraged its
deep consumer insights, research and development strengths and knowledge of Nutrition,
Health and Wellness to roll out MAGGI Rice Noodles, with the goodness of rice, and
designed to provide Balanced Energy as recommended by nutritionists. These were
launched in three unique flavours, suited to regional preferences. The Taste Bhi, Health Bhi
proposition is also relevant for MAGGI Soups. MAGGI Healthy Soups have the goodness of
vegetables, are low in fat and cholesterol, have no added MSG or synthetic colors. During the
year this range was strengthened with new variants like MAGGI Sweet Corn Vegetable,
MAGGI Sweet & Sour Noodle and MAGGI Hot & Sour Chicken Soups. A new range of
Instant Soups was launched during the year under the brand MAGGI Healthy Soups
SANJEEVNI that met with very good consumer response. This new range of Instant Soups
brings together the Nestl know-how in developing Soups with sharper consumer insight into
the relevance of traditional ingredients like Amla and Badam that are good for you and
known to ensure health and well being. Relevant products and focused advertising and
consumer communication helped the business sustain its momentum across the key
categories of Noodles, Sauces and Soups. The Its different campaign for MAGGI Sauces
that was revived recently, led to good growth in the category. MAGGI continued to be the

leader and this was brought out in a survey by Brand Equity where MAGGI was rated as the
5th Most Trusted Food Brand for this year.
*Net sales have increased by 23.4% in the year 2008 as compared to year 2007 net sales.
Reason: MAGGI continued to lead the market with rapid growth through strong consumer
centric innovation and renovation, enhanced availability and new offerings that improved
affordability. The concept of TASTE BHI HEALTH BHI now extends across the portfolio,
with offerings like MAGGI 2-Minute Noodles (containing protein and calcium), MAGGI
Vegetable Atta Noodles (offering the dietary fibre of whole wheat and the goodness of
vegetables), MAGGI Healthy Soups (with the goodness of vegetables, low in fat and
cholesterol, and no added MSG or synthetic colours), and MAGGI Sanjeevni Soups (with
traditional ingredients like Amla and Badam).
Nestle understands that many in the younger generation today are continuously on the go and
facing busier lifestyles. To provide them a tasty, convenient and wholesome light meal on the
go, the business launched MAGGI Cuppa Mania, delicious Instant Noodles in a cup, with the
power of calcium and the goodness of real vegetables. During the year, MAGGI PICHKOO
Tomato Ketchup was launched in a unique easy to handle day pack to drive affordability,
taste and convenience for a larger number of consumers. Nestle also launched another
pioneering product, MAGGI Bhuna Masala, to cook tasty and healthy everyday meals, more
conveniently. It enables the housewife to prepare delicious dishes, yet bypass the process of
preparing the base/gravy. It is ready to use and does not compromise on the fresh taste,
nutrition and health aspects of cooking. The MAGGI Noodles Chotu Pack continued to drive
distribution and extended the reach of MAGGI Noodles to another 300,000 new outlets in
one single year.
MAGGI continued to be recognised as a very strong brand. This was again highlighted in the
annual survey compiled by Brand Equity where MAGGI
moved up in the rankings as one of Indias Top 5 Most
Trusted Food Brands. This was also brought out in another
independent survey by NCAER (National Council for
Applied Economic Research), wherein MAGGI
ranked as the Number 1 Most Valuable FMCG Brand.
The focus on continuous business excellence extends
across the Company. While Nestle has an efficient
distribution system, it has consistently pushed itself over
the recent years to further improve its service levels and to help consumers easier access to
the Companys products. During the year, there was further improvement in the distribution
network and availability of fresh, high quality Nestl products. The specialised teams for Key
Account Management, Channel and Category Sales Development, Route-to-market and the
existing trade channels continued to improve availability and visibility of products. The
quality and capabilities of the people are key to this and, during the year, Nestle maintained
focus on training and development of the sales teams to reinforce skills and impart best
practices.

*Net sales have increased by 18.6% in the year 2009 as compared to year 2008 net sales.

Reason: MAGGI continued to connect with consumers in innovative and impactful ways.
MAGGI sauces advertising acknowledged the increasing stress on consumers and advocated
Hasaon, Khushi Phaelao...India Ko Healthy Banao. The campaign for MAGGI Vegetable
Multigrainz noodles revived another dimension in consumers lives.
Nestle strive to improve the availability of the products with a clear focus on building
distribution by going deep & wide across urban and rural geographies. This has resulted in
improving MAGGI reach to more than 400,000 outlets in this year alone.
*Net sales have increased by 21.9% in the year 2010 as compared to year 2009 net sales.
Reason: MAGGI continued to strengthen its wide portfolio at an accelerated pace. Being one
of the top most trusted Food Brands in the country; MAGGI has gone beyond offering
products, to building emotional relationships with consumers. MAGGI products provide
Taste and Health and bring happiness to every home, delivering Taste Bhi Health Bhi
Khushiyan Bhi. MAGGI products were innovated and renovated in accordance with the
changing needs of all members of the family. During the year, an innovative range of Me &
Meri MAGGI tastes were introduced in noodles. The Me & Meri MAGGI campaign started
in 2009, to celebrate 25 years of the emotional relationship of MAGGI with its consumers.
The overwhelming response to the campaign brought out some very distinct experiences and
emotions that consumers associated with MAGGI.
Three flavours launched were Me & Meri Thrillin Curry,Me & Meri Tricky Tomato and
Me & Meri Romantic Capsica. Soon after, MAGGI vegetable Multigrainz noodles was
rolled out. MAGGI Masala-ae-Magic and MAGGI Nutri-Licious Pazzta launched in late
2009 established themselves during the year 2010. MAGGI Nutri-Licious Pazzta is already
the market leader and continues to grow the market for light meals.
*Net sales have increased by 19.8% in the year 2011 as compared to year 2010 net sales.
Reason: MAGGI 2-Minute noodles ended the year with significant volume growths and
sustained leadership, despite the entry of several new players in the category. MAGGI
continued its robust growth and achieved strong leadership in the pasta/macaroni category
that it had entered in the previous year 2010 with the launch of MAGGI Nutri-licious
PAZZTA. MAGGI continued to develop new products and concepts to build further on its

philosophy of Taste Bhi Health Bhi Khushiyan Bhi. MAGGI Imli Pichkoo, with the taste of
imle chutney, was added to the range to meet the regional taste preferences.
MAGGI Souper Roni was developed as a new nutritious concept with the health of soup and
the fun of macaroni. The quick cooking and nutritious MAGGI Nutri-licious PAZZTA was
launched in new tastes of tomato and mushroom, and to offer better value
to consumers with available in double packs.
Nestle has always emphasized his preference for reaching consumers
wherever they may be and with products that are fresh. Nestle knows the
importance of an efficient distribution structure that delivers its products
from factory to consumers in the shortest time and able to continued to
expand the reach of its products at an accelerated pace. Like the earlier
year 2010, added another 400,000 outlets in this year 2011, contributing to
a very fast growing sales network in the food industry.

*Net sales have increased by 10.8% in the year 2012 as compared to year 2011 net sales.
Reason: Nestle has consistently made efforts to
improve the availability of its products wherever and
whenever the consumer may want it and has continued
to build a deeper and wider distribution network. During
the year, it added another 500,000 outlets accelerating
from 400,000 incremental outlets in the previous year.
While accelerating the expansion of its distribution
network, Nestle also increased the focus on enhancing the capabilities, improving processes
and operations and cutting out waste. Nestle continuous excellence has been rolled out across
the regions. In order to further enhance productivity in sales operations, Nestle had earlier
initiated a drive to equip its distributors with advanced sales automation.
*Net sales have increased by 9.1% in the year 2013 as compared to year 2012 net sales.
Reason: Strong consumer insights, emphasis on quality, innovation and renovation of
products to provide taste and health, and strong engagement with consumers, have continued
to strengthen the business. Despite the entry of several new players in recent years, MAGGI
maintained its lead and the most recent national survey by Brand Equity ranked MAGGI as
the No.1 Food Brand in India and also amongst the Top 10 Most Trusted Brands of India.
The strong product portfolio of MAGGI Noodles, comprising amongst others Veg Atta
Noodles, Multigrainz Noodles and 2-Minute Noodles fortified with protein and calcium is
now part of diversified and balanced diets in families across India. The business has
continued to focus on understanding consumer preferences in different segment as well as
regional needs, and during the year it launched MAGGI HUNGROOO and MAGGI Magical
Masala Noodles. One of the core strengths of MAGGI is that it has always focused on

providing solutions for wholesome cooking. Since

micronutrient malnutrition is a serious problem in
India, the company had sought assistance from
Nestl R&D and MAGGI had worked closely with
them to find convenient and affordable approaches
to address this challenge.
The concept of MAGGI Masala-ae-Magic spice mix
that was developed as a taste enhancer fortified with Iron, Iodine and Vitamin A has been well
accepted in everyday cooking and continues to expand its footprint. MAGGI Soups that were
renovated and launched towards the end of 2012 continued to receive positive feedback from
consumers. These soups contain fresh vegetable purees and are manufactured using Nestls
proprietary granulation based technology that enables it to retain the freshness of the key
ingredients, to deliver the taste and aroma of fresh vegetables.
Nestle continued to strengthen the position in Sauces and during the year MAGGI PICHKOO
made further inroads. The range of MAGGI Bhuna Masala was further extended to include
MAGGI Korma base and MAGGI Makhni base and continued to do well.
Nestle has continued to make active efforts to reach its products to consumers wherever and
whenever the consumer may want it. The focus during the year has been to improve
availability in a sustained manner even in the secondary and tertiary towns. Nestle continued
to increase its reach amongst relevant consumers and during the year it added another
245,000 outlets. These efforts were reinforced by increased engagement with its long term
distribution partners.
*Net sales for the year 2014 increased by 8.2% over the previous year.
Reason: MAGGI is like mothers who are constantly understanding our lifestyles as we grow,
anticipating our needs, preparing for them and nurturing them, sensing the change in our
personalities and speaking our language. MAGGI has constantly been going deeper for
consumer insights, beyond the obvious and searching for the moment of truth. This reflects
in the WPP- Milward Brown survey of 2014 that measured brand power as salience,
relevance, connect, uniqueness and dynamism and recognised MAGGI as The Most
Powerful Brand in India. MAGGI has been completely consumer centric. It understood the
consumer need for health in everyday food and pioneered the concept of Taste Bhi Health
Bhi. Nestle conducted perhaps the largest cooking habits study in the country, studied
100,000 dishes prepared in kitchens across India and constantly worked closely with Nestl
R&D Centres across the world to innovate and renovate. We can see for yourself why the
portfolio includes Noodles enriched with Protein and Calcium, MAGGI Vegetable Atta
Noodles, MAGGI Pazzta made from Suji, MAGGI Bhuna Masala that simplifies everyday
cooking and MAGGI Masala-ae-Magic that is fortified with Iron, Iodine and Vitamin A to
address the concern of micronutrient deficiency in India. This is where food technology and
expertise in nutrition can make the difference. Even though there is growing awareness about
healthy eating, health seems to be a boring thought for many of us or we just do not have the
time. Therefore, Nestle set the objective Health ko Mazedaar Banaao. Nestle already have a
range of excellent products in the portfolio and the latest is MAGGI Oat Noodles. Certainly,

since MAGGI has built a unique bond with consumers and in the 2014 Brand Equity survey
of Most Trusted Brands, MAGGI climbed up from No.9 in the previous year to break into the
Top 5 in 2014, while continuing to be the No.1 Most Trusted Food Brand.
*Net sales have decreased by 17.2% in the year 2015 as compared to year 2014 net sales
Reason: It was largely due to the impact of MAGGI Noodles issue. The Exceptional items Charge for 2015 of ` 5,008.4 million relates to loss on MAGGI Noodles stocks withdrawn
including incidental costs thereto and estimates of other related costs incurred exclusively in
the ordinary course of business. However, business was severely disrupted by the MAGGI
Noodles issue and continued to significantly impact business for a major part of the year.
The impact of the MAGGI Noodles issue was felt in several dimensions and across our
various businesses.
Despite the tough situation Nestle closed the year reporting an improvement in the
sequential performance both in terms of Sales and Margins. During the time MAGGI
Noodles was not in the market, Nestle continued to talk to the consumers We Miss You
Too. Closer to the re-launch, MAGGI Is Safe, Has Always Been campaign was rolled out
to addresses consumer concerns. After the re-launch, Welcome Back MAGGI
communication echoed the consumer sentiment cross the country.
In an innovative move, Nestle partnered with Snapdeal to sell 60,000 MAGGI Welcome
Kits through e-commerce. These were all sold out
within 5 minutes after the sale opened. Close to 10
lakh consumers had pre-booked to participate in the
sale.
The consumers overwhelmed MAGGI with their
love and support, and within 53 days by the end of
December, according to Nielsen figures MAGGI Noodles had already recovered its market
share from 0% on 9th November to 33.3% on 31st December 2015.
Conclusion: Due to continues innovation and renovation of products and their tastes,
Excellent product portfolio, Knowing consumer insights, Automated distribution
system, Increasing its reach everywhere by accelerating retail outlets every year,
Increasing production capacity. Enhancing food technology & standards, Nestle is able
to increase its sales in continuous pace. MAGGI still a number 1 food brand in India.
According to Nielsen, MAGGI noodles has regained 50% share, about six months after
it re-launched the popular snack.
Note: Analysis is based on Secondary Sources. They are Nestle official website,
Nestle.in/investors/stockand financials/annual reports, Times of India, The Hindu and other
web sources.