New P D

A

PROJECT REPORT ON

NEW PRODUCT DEVELOPMENT

PREPARED BY :

MANISH KHATRI

IN PARTIAL FULFILMENT OF THE REQUIREMENT OF POST GRADUATION DIPLOMA IN MANAGEMENT

UNDER THE GUIDANCE OF

AIR MSHL PRAKASH HONMODE

SINHGAD BUSINESS SCHOOL, PUNE DECEMBER 2008 AKNOWLEDGEMENT

I take the opportunity to thank Sinhgad Business School, Pune for giving me this opportunity to do this project. I would like to thank our Director Sir Mr. Anil Keskar, our class coordinator Mrs. Sridevi, special thanks to the Guide Sir Air Mshl Prakash Honmode and all faculty members and all those people who have helped me directly and indirectly in the successful completion of this project.

Manish Khatri

STUDENT DECLARATION

I hereby declare that the project report entitled NEW PRODUCT DEVELOPMENT Submitted in partial fulfillment of the requirement for the award of diploma of

POST GRADUATION DIPLOMA IN MANAGEMENT to Sinhgad Business School, Pune is prepared by me.

Place: PUNE Date: 08/12/2008 Signature of the student SBS281032

APPROVAL CERTIFICATE The Project Report of

Mr. MANISH KHATRI

NEW PRODUCT DEVELOPMENT

is approved and is acceptable in quality and form.

Examiner Signature: _____________________ Name: ________________________

GUIDE’S CERTIFICATE This is to certify that the Project Report entitled

NEW PRODUCT DEVELOPMENT Submitted in partial fulfillment of the requirement for the award of diploma of

POST GRADUATION DIPLOMA IN MANAGEMENT Of Sinhgad Business School, Pune

MANISH KHATRI Has prepared under my supervision and guidance and the Project Report is made by him only.

CERTIFIED Signature_______________________ (Prof.) AIR MSHL PRAKASH HONMODE

TABLE OF CONTENTS S.no.

Particulars

1.

New Product Development

2.

New Product and its need and uses

3.

New Product Classification

4.

New Product Planning

5.

Stages in New Product Development

6

Factors for Success of a New Product

7

Reasons for Failures of a Launched Product

8

Challenges in New Product Development

9

Use of New Product Development for managing product lines Daewoo : Factors Affecting Crisis History Current Status Global Marketing And Manufacture Daewoo Matiz Why Daewoo Matiz Fail? Nestle India Nestle Maggi Maggi Products Strategies of Maggi Hurdles Faced

10 11. 12. 13. 14. 15. 16. 17. 18. 19. 20.

NEW PRODUCT DEVELOPMENT

New Product Development is a process which is designed to develop, test and consider the viability of products which are new to the market in order to ensure the growth or survival of the organization.

NEW PRODUCT New product can be described as follows:•

The products open up an entirely new market.

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The product adapts and replaces an existing product.

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A product significantly broadens the market for an existing product.

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An old product introduced in a new market.

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An old product packaged in a different way.

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An old product marketed in a different way.

NEED TO DEVELOP A NEW PRODUCT New Product Development is the major component of the firm’s product policy. Its necessities are as follows:•

To add product portfolio.

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To replace declining products.

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To take advantages of a new products.

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To maintain/increase market share.

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To defeat rivals.

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To keep up with rivals.

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To maintain competitive advantage.

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To fill a gap in the market.

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To bring new customers.

USE OF NEW PRODUCT New products can be used to increase or to defend market share by offering more choice or updating older products. It can be diversified into new markets and appealed to new segments. New products help to improves relations with distributers. Firm’s reputation can be maintained by new product. It makes better use of the organizations.

NEW PRODUCT CLASSIFICATION New product can be classified into six categories which are as follows:a) Major innovations: - This type of new products are new to the world

called as innovative products.TV, iPod, Flat screen TV etc are the examples of innovative products. b) New product lines: - When a company enters in an existing market

segment the product is new to the company. For examples- Tata indicom for Tata, Reliance Fresh for Reliance because Tata is an existing brand but they newly entered in the Tele-communication lines as Tata indicom. c) Product line extension: - Additions to product line to supplement the

firms existing product lines. When a company add new products to its existing product line extensions. Civic by Honda is the best example for product line extension. d) Product improvements: - When a company improves or revises its

existing product then it is also a new product. We can have an example of Intel which provides processors. At its nascent stage it was just as a processor but after few years down the line due to introduction of new technologies it improves its processor which is now Centurion. e) Repositioning: - When an already existing product is targeted towards a

new market segments is known as Repositioning. For this as we can see today Dairy milk is more focusing on adults for its chocolates with tagline of “Pappu pass ho gaya”. f)

Cost reductions: - New product is modified to provide similar performance but at a lower cost is cost reductions. We can have a best example for cost reduction is Nokia. Nokia is providing same features in low cost mobile which was earlier at a high price.

NEW PRODUCT PLANNING New product planning is a strategic stage. In this stage firm assess its current product portfolio and also assess the opportunities and threats. The firm than determines the type of products which would be best fit with the corporate strategies.

STAGES IN NEW PRODUCT DEVELOPMENT New product development in respect of intrinsically new products goes through these important stages:-

Each of these stages requires careful planning. Let us discuss them one by one.

 Generating New Product Ideas: - New products ideas may emanate

from customers, dealers, in-company sources, including the market

research group and external research organizations. Consumers problem are the most fertile ground for the generation of new product ideas. R and D staffs and salesmen are also sources of new product ideas. Sometimes new product ideas emanate just ‘as a matter of happening’. The development of Walkman, the personal, portable stereo cassette player of Sony of Japan, which became legend brand in entertainment electronics, is a good example for it. The Walkman story shows that new product ideas can come from any nook and corner of the environment. The story also reveals that it needs new product champions to nurture a new product idea and translate it into a reality.

 Idea Screening: - The second stage of new product development is idea

screening. In this stage, screening of products takes place to spot good ideas and drop poor ones as soon as possible. Ideas are also checked for technical feasibility, financial viability and marketability. The business analyzes the product to evaluate its demand, marketability and profit potential and given ideas rating according to marketing production and strategic factors takes place. Criteria for evaluating new products are as follows:•

Is there sufficient demand?

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Will it be profitable?

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Does it fit the firm’s image?

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What is the likely payback period?

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What is the state of the market and competition?

The more attractive looking ideas pass on to the concept testing stage.

 Concept Development and Testing: - This stage is the detailed version

of new product idea stated in meaningful consumer terms. Turning of ideas into Tangible products that consumer perceive as being valuable comes under concept development.

Testing of new products process with a group of consumers to find out if the concept have strong consumer appeal or not is concept testing. This stage has a special importance when totally new products are being planned for introduction.

 Marketing Strategy Development: - From the stage of concept

development and testing new product travels to the stage of market strategy development. In this stage an initial marketing strategy is designed for a new product based on the product concept. Formal market research is also carried out to assess the products market potential.

 Business Analysis: - Business analysis is the next stage. This stage is of

special importance in the new product development process because several vital decisions regarding the projects are taken based on the analysis done at this stage. This stage is the review of the sales, costs and the profit projection for a new product to find out whether these factors satisfy the firms objective. It estimates potential sales, income, breakeven point, profit and return on investments from new ideas and projecting probable costs and sales to see, will profit reach the firms target.

 Actual Development of the New Product: - In this stage, the firm

develops the product as such. R and D turn the idea into product. This stage is concerned with design, materials, production processes, quality and safety. Developing the product concept into physical product to ensure that the product idea can be turned into a workable product. Answers are sought to questions like: •

Does the product look good?

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Does it work?

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Is it reliable?

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Does design allow it to be made efficiently?

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Does it will be at cost which allows for profits?

 Test Marketing: - In test marketing, the new product, with the support of

the chosen marketing mix, is actually launched and marketed in a small but representative market where consumer reactions can be assessed and marketing mix checked and adjusted. Aims of this stage are as follows: •

To forecast likely results of a national launch.

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To test the operational effectiveness of the marketing plan.

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To identify possible problems.

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To assess customer reaction.

 Commercialization/Product Launch: - At this stage, the company

takes the decision to go in for large scale manufacturing and marketing the product. It gets to this stage when all the previous steps are favorable signals .Timing is critical for success and the product has to be well targeted and positioned.

FACTORS FOR SUCCESS OF A NEW PRODUCT

Many new ideas do not reach the market at all. Only little get success, in many cases, the success is short lived; they die out after the initial boom. Factors for the success of a new product are as follows: -

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Development of a new superior product

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Differentiation from rivals

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Well conceived , properly executed launch

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Top management backing

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Market attractiveness –the product should be aimed at attractive markets

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Resources must be in place

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Speed and timely

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Quality

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Market driven on customer focus

REASONS FOR FAILURE OF LAUNCHED PRODUCTS It is found that new products suffer from a high attrition rate. New products which manage to react the market after years of preparation and works, get failed. The rationale for these is as follows: •

Neglect of market research

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Inaccurate market research

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Poor marketing after launch

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Poor distribution

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Product performance below expectation

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Product too complex

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Unforeseen products

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Market not ready for the products

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Inadequate support for the market

CHALLENGES IN NEW PRODUCT DEVELOPMENT

Companies coming up with innovative market offerings often face challenges which we can discuss with help of these points: • • • • •

Develop innovative products that capture the imagination of consumers to retain existing customers and attract new ones. Bring new ideas to market ahead of the competition to grow revenue and market share. Achieve global development excellence and efficiency by leveraging core competencies of the value chain to increase profit margins. Integrate regulatory compliance into product lifecycle processes to reduce business risk and sell products in global markets. Effectively manage the global manufacturing supply chain to ensure on-time, on-cost and quality product delivery.

In today's competitive global market, innovative products are not enough. To compete effectively, companies need to accelerate new product development and reduce product cost. The only way to accomplish all these objectives is to radically rethink the way new product introductions (NPI) are managed.

USE OF NEW PRODUCT DEVELOPMENT FOR MANAGING PRODUCT LINES Managing product lines is an essential part of any company’s NPD efforts. In larger companies it is important that a cross-functional NPD team be assembled to control the overall workload going through the NPD system for the duration of a specific project. Management can facilitate innovation by providing support, commitment and buy-in and by ensuring that projects are managed efficiently. Top management support in particular from the CEO or owner/manager is a critical success factor in NPD. This information can then be used to: •

• Develop an NPD management system

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• Allocate resources and management support

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• Set up a team/allocate staff

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• Identify opportunities for new products (idea generation)

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• Screen and prioritize ideas

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• Conduct feasibility studies

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• Develop the concept

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• Prepare a business case

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• Develop the product

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• Promote and launch the new product

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• Monitor and measure performance of product, project and team

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• Continually improve your NPD system

DAEWOO Daewoo was a major South Korean conglomerate. It was founded in March 22, 1967 as Daewoo Industrial and was dismantled by the Korean government in 1999. History The Daewoo Group was founded by Kim Woo-Jung in March 1967. It became one of the Big Four chaebol in South Korea. An industrial and multi-faceted service conglomerate, Daewoo was prominent in expanding its global market through joint ventures all over the world. Daewoo benefited from government-sponsored cheap loans based on potential export profits. The company initially concentrated on labor-intensive clothing and textile industries that provided high profit margins. The most significant resource in this plan was South Korea's large workforce. The third and fourth of the five-year plans occurred from 1973 to 1981. During this period, the country's labor force was in high demand. Competition from other countries began eroding Korea's competitive edge. The government responded to this change by concentrating its effort on mechanical and electrical engineering, shipbuilding, petrochemicals, construction, and military initiatives. At the end of this period, the government forced Daewoo into ship buildings. Kim was reluctant to enter this industry, but Daewoo soon earned a reputation for producing competitively priced ships and oil rigs. During the next decade, the Korean government became more liberal in economic policies. Small private companies were encouraged, protectionist import restrictions were loosened, and the government reduced positive discrimination, to encourage free market trade and to force the chaebol to be more aggressive abroad. Daewoo responded by establishing a number of joint ventures with U.S. and European companies. It expanded exports of machine tools, defense products, aerospace interests, and semiconductor design and manufacturing. Eventually, it began to build civilian helicopters and airplanes, priced considerably cheaper than those produced by its U.S. counterparts. It also expanded efforts in the automotive industry and was ranked as the seventh largest car exporter and the sixth largest car manufacturer in the world. Throughout this period, Daewoo experienced great success at turning around faltering companies in Korea.

In the 1980s and early 1990s, the Daewoo Group also produced consumer electronics, computers, telecommunication products, construction equipment, buildings, and musical instruments (Daewoo Piano).

FACTORS THAT AFFECTED DAEWOO’S PERFORMANCE •

•

•

• •

•

Government intervention: Government policy served as a double edged sword: it protected the chaebol, providing them with massive subsidies, unlimited cheap credit, and protection against foreign competition. However, the price for these services was total loyalty to the government. Chaebol were forced to take over industries against their will. The government was constantly involved in their businesses and stifled their creativity. Labor market: The traditional work ethic that helped Korea reach economic prosperity has been threatened as workers have begun increasingly violent protests against years of long hours and low pay. Daewoo shipbuilding suffered heavy losses due to workers' demands for pay raises. Operating in a global economy: International demand for free trade is forcing the Korean government to open its market. The chaebol will lose its protectionist import controls. Most recently, the North American Free Trade Agreement and the European Economic Community imposed trade limitations. Product quality from Korea: Korean products were considered to be of low quality. By the 1990s, Daewoo Group was heavily leveraged, major markets were stagnant, expenditures on R&D were increasing, labor unrest was continuing, and government policy was turning against the company. Kim was most recently charged with allegedly paying campaign contributions to former president Roh Tae Woo in exchange for a large government contract to build a submarine base.

Crisis history Daewoo Group ran into deep financial trouble in 1998 due to the Asian financial crisis, increasingly thin relationships with the Korean government under President Kim Dae Jung, and its own poor financial management. With the Korean government in deficit, traditional reliance on access to cheap and nearly unlimited credit was severely restricted. According to an article by the "Economist," dated August 19, 1999, not long after Daewoo's insolvency, "Its failure was a long time coming. [In 1998], when the economic crisis forced most of the chaebol to cut back, Daewoo brazenly added 14 new firms to its existing 275 subsidiaries—and this in a year where the group lost a combined 550 billion won ($458m) on sales of 62 trillion won ($51 billion). At the end of 1997, South Korea’s four biggest chaebol averaged debt of nearly five times their equity. But while Samsung and LG [two other considerable chaebols] cut back during the subsequent year of economic crisis, Daewoo acted as if nothing had changed: it added 40% more debt. By 1999, Daewoo, the second largest conglomerate in South Korea holding interests in approximately 100 countries, went bankrupt, with debts of about 80 billion won (84.3 million USD). Soon after the company's demise, Chairman Kim Woo-jung fled to France, and many former Daewoo factory workers put up "Wanted" posters with his picture. Kim Woo-jung returned to Korea in June 2005 and was promptly arrested, after spending six years abroad. Mr. Kim was charged with masterminding accounting fraud worth 41 trillion won

($43.4 billion), illegally borrowing 9.8 trillion won ($10.3 billion) and smuggling $3.2 billion out of the country, according to South Korea's Yonhap News Agency. On May 30, 2006 a court in Seoul sentenced Kim to 10 years in prison after convicting him on charges of fraud and embezzlement. On the last day of the trial, Mr. Kim tearfully addressed the court, "I cannot dodge my responsibility of wrongly buttoning up the final button of fate." The downfall of Daewoo was and still is considered highly contentious, due to the integral nature that chaebols play in South Korean life. The collapse caused billions of dollars in losses for both South Korean banks and the government. However, the bankruptcy of the company was not merely a financial but also a political crisis, and came as a large shock to much of the nation's population.

CURRENT STATUS Daewoo Electronics survives to this day despite bankruptcy, with a new brand logo "DE", but many of the other subsidiaries and divisions have become independent or simply perished under the "reorganization" of the Korean government under Kim Dae Jung. In North America, Target stores market Daewoo Electronics products under their "Trutech" brand on an ODM basis. The group was reorganized into three parts: Daewoo International, Daewoo Engineering & Construction and Daewoo Corporation. It is active in many markets; the most important are steel processing, ship building and financial services. In 2004, General Motors pulled the Daewoo brand of vehicles out of Australia and New Zealand, citing irreparable brand damage. Later that same year, GM announced that Daewoo Motors in Europe would change its name to Chevrolet as of January 1, 2005. In 2005, it was announced that Daewoo cars would have a Holden badge in Australia and New Zealand. In South Africa, Thailand and the Middle East, Daewoo models were already being sold as Chevrolets. Only in South Korea and Vietnam does the Daewoo marquee survive. The Daewoo commercial vehicle manufacturer was taken over by Tata Motors - the world's 5th largest medium and heavy commercial vehicle manufacturer. Daewoo is also moving into the oil & gas industry. While many western oil & gas companies decline to conduct business in Burma on account of the abysmal human

rights record of the ruling military junta, Daewoo is one of three(the others the French company Total and American company Unicol) which is already or is close to starting gas production in the country(at the Yadana Field). During explorations Daewoo found one of the largest gas fields in SE Asia located in Blocks A-1 and A-3 at the Shwe Field about 100km off Sittwe in Rakhine State, which is planned to go into production within the next 5 years, thereby providing a lucrative (and probably the largest) source of hard currency finance for the ruling junta. It is unclear whether the association between Daewoo and the oppressive military regime in Burma(Burma strikes Gold, Upstream 28.08.08), responsible for recent bloody crackdown of peaceful monk-led antigovernment protesters in September and October 2007, wholly inadequate warning and response to Cyclone Nargis in May 2008, will further hurt the reputation of the company. However, Daewoo has long been known as one of the largest foreign investors in the country. Related to its involvement in the Burmese oil & gas industry, the Daewoo International President Lee Tae-yong, has been convicted and sentenced in South Korea for illegally selling military hardware to the junta (Burma strikes Gold, Upstream 28.08.08). These sales to the military were directly related to award of the offshore concession blocks to Daewoo. In court, President Lee defended his actions as being in "South Korea's national interest" (Burma strikes Gold, Upstream 28.08.08). On Thursday, November 15th, 2007 Lee Tae-yong and thirteen other South Koreans were convicted of illegally exporting weapons technology and equipment to Burma along with other related charges.

DAEWOO MATIZ The Daewoo Matiz is a city car produced by the South Korean automaker GM Daewoo that has been marketed worldwide since 1998. Available solely as a five-door hatchback with two engine configurations, and replacing the Daewoo Tico, the Matiz was originally designed by Italdesign Giugiaro and has been facelifted twice. The Matiz has won the Best City car in the 1998 World's Most Beautiful Automobile competition and it draws involuntary smiles from even the wierdest of cretin. Even the rear of this car is cute to look at. The engine is packaged tightly to provide a great deal of front leg room and is throughly refined in its behaviour. However, all this cuteness is lost when compared with the competition. The Santro an immediate competitor scores over most features over the Matiz except in the looks department. Nevertheless, Matiz offers good value for money.The Matiz was developed by GM Daewoo. It also called as Chevrolet Matiz, Chevrolet Spark, Chevrolet Joy, Pontiac

Matiz G2, Pontiac Matiz, Pontiac G2, Chevrolet Exclusive, FSO Matiz, Chevrolet Taxi 7:24 Chronos, UZ Daewoo Matiz. The Daewoo Matiz started production in 1998 and sold in South Korea and many European markets with the code name M100. The exterior design is based on the Lucciola, a Fiat Cinquecento concept by Italdesign Giugiaro which had been rejected by Fiat. The 0.8-litre gasoline engine and the transmission were carryovers from the Daewoo Tico. The car became the best selling Daewoo model in Europe for the next four years. The Matiz is available in one body style: a five-door hatchback. Its Curb weight was 847 kg (1867 lb) The Matiz was originally launched with just a 0.8 L 3-cylinder engine, however with the 2001 model-year revisions a 1.0 L 4cylinder was added to the upper models of the range. In 2008 the 0.8 L was revised to fall below the 120g/km level, thus qualifying for the UK's £35 road tax band and no London Congestion Charge.

GLOBAL MARKETING AND MANUFACTURE Asia •

From 1998 until 2001, the Matiz was sold in Japan under Chevrolet Matiz. From 2001 until 2006, it was sold under Chevrolet Matiz II. In fact, both models were distributed and marketed by Suzuki Motor Corporation. In 2006, it took the Daewoo marque.

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In India, it was launched in 1999 as the Daewoo Matiz. General Motors India relaunched it as the Chevrolet Spark in 2007.

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In Pakistan, the car was initially introduced as Chevrolet Exclusive in 2003. It is currently manufactured by Nexus Automotive under the name Chevrolet Joy.

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In the Philippines, the Matiz was available during the years 1999-2000 through the Grey Market. In 2007, it was released under the name Chevrolet Spark.

Europe •

From 1998 until 2004, the Matiz was sold in Europe under the Daewoo badge. In 2005, it took the Chevrolet marque, as well as the other South Korean models of General Motors.

•

Since 2000, CKD kits have been supplied UzDaewooAuto, FSO and Rodae, to be built and sold in Uzbekistan, Poland and Romania respectively. At the beginning of 2005, the Polish Matiz started to be sold under the marque FSO (FSO Matiz), which obtained autonomy. New models of Matiz are sold as Chevrolet Spark.

Latin America •

In Mexico, the Matiz was introduced to the market in 2003. The 2006 model was renamed to Pontiac Matiz G2. It was also sold as Pontiac Matiz and Pontiac G2.

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In the Dominican Republic it is sold as the Chevy Spark. Also sold is the Chery QQ.

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In Colombia, the Matiz was imported by Daewoo distributors between 2002 and 2005 and then GM Colmotores began to assemble and sell it branded as Chevrolet Spark. In 2006, a taxi version called 7/24 was launched.

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In Argentina, Ecuador and Peru it is sold as the Chevrolet Spark.

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In Paraguay, it was but from 2008 it is dealers.

initially sold as Daewoo Matiz, sold through Chevrolet

WHY DAEWOO MATIZ FAILS? Designed by Giorgetto Guigiaro, the Matiz has won international acclaim 'Most Beautiful Automobile' - Milan Show & 'Best Small Car' - UK Motor Show. The interiors are not cluttered, are comfortable and hold much space for a car its size. The car conforms to European Safety Regulations. The Matiz forms a protective shell around the passengers to protect them in case of serious accidents. The Matiz is the only car in India to have successfully passed the stringent 40% Offset Frontal Crash Test. The Matiz also meets the Euro II norms. The car runs on a 796-cc engine that produces 52bhp with a torque of 7.3kg-m.It has a Multi-Point Fuel Injection system. With a seating capacity of upto five people and five doors, it sure is a car to be in. In spite of these specialities Matiz Fails. It is the main part which is very important to think upon where would be the new product will fail. Daewoo Matiz definitely left some part of new product development that is why it fails. Let us see why Matiz fails:•

The main problem was the Matiz' positioning. They had launched ONLY a fully loaded variant at 4 lacs in Mumbai. Compare that to the Santro and Zen, which had fully loaded as well as mid-range and basic versions

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Its design was allegedly copied outright by Chinese manufacturer Chery's QQ.

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It was not much powerful for highways.

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When the car was launched it was overpriced by Daewoo. Matiz price was later on corrected and the sales gap to Santro was coming down fast, and when it was just abt to overtake, Daewoo collapsed..

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Hyundais determination and Daewoos lack of it.

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They suddenly brought down their prices by Rs 1 lakh. This created very bad impression on public.

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The car was never properly customised for India faulty fuel pumps, etc.

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It had lots of problems with the cooling system and suspension.

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Its wheel rims were awful - got bent very fast and wore out the tyres even faster

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It was most difficult to repair, because aesthetics overtook convenience inside the bonnet

Daewoo Matiz failed but after this a new car launche by Chevrolet Matiz which was the just modifications of Daewoo Matiz it got good success. So as per this new product development’s every process is very important for a new product.

INDIA Nestlé India is a subsidiary of Nestlé S.A. of Switzerland. With seven factories and a large number of co-packers, Nestlé India is a vibrant Company that provides consumers in India with products of global standards and is committed to long-term sustainable growth and shareholder satisfaction. The Company insists on honesty, integrity and fairness in all aspects of its business and expects the same in its relationships. This has earned it the trust and respect of every strata of society that it comes in contact with and is acknowledged amongst India's 'Most Respected Companies' and amongst the 'Top Wealth Creators of India'.

Nestlé’s relationship with India dates back to 1912, when it began trading as The Nestlé Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished products in the Indian market.

After India’s independence in 1947, the economic policies of the Indian Government emphazised the need for local production. Nestlé responded to India’s aspirations by forming a company in India and set up its first factory in 1961 at Moga, Punjab, where the Government wanted Nestlé to develop the milk economy. Progress in Moga required the introduction of Nestlé’s Agricultural Services to educate, advise and help the farmer in a variety of aspects. From increasing the milk yield of their cows through improved dairy farming methods, to irrigation, scientific crop management practices and helping with the procurement of bank loans. Nestlé set up milk collection centres that would not only ensure prompt collection and pay fair prices, but also instil amongst the community, a confidence in the dairy business. Progress involved the creation of prosperity on an on-going and sustainable basis that has resulted in not just the transformation of Moga into a prosperous and vibrant milk district today, but a thriving hub of industrial activity, as well. For more on Nestlé Agricultural Services, Nestlé has been a partner in India's growth for over nine decades now and has built a very special relationship of trust and commitment with the people of India. The Company's activities in India have facilitated direct and indirect employment and provides livelihood to about one million people including farmers, suppliers of packaging materials, services and other goods. The Company continuously focuses its efforts to better understand the changing lifestyles of India and anticipate consumer needs in order to provide Taste, Nutrition, Health and Wellness through its product offerings. The culture of innovation and renovation within the Company and access to the Nestlé Group's proprietary technology/Brands expertise and the extensive centralized Research and Development facilities gives it a distinct advantage in these efforts. It helps the Company to create value that can be sustained over the long term by offering consumers a wide variety of high quality, safe food products at affordable prices. Nestlé India manufactures products of truly international quality under internationally famous brand names such as NESCAFÉ, MAGGI, MILKYBAR, MILO, KIT KAT, BAR-ONE, MILKMAID and NESTEA and in recent years the Company has also introduced products of daily consumption and use such as NESTLÉ Milk, NESTLÉ SLIM Milk, NESTLÉ Fresh 'n' Natural Dahi and NESTLÉ Jeera Raita. Nestlé India is a responsible organization and facilitates initiatives that help to improve the quality of life in the communities where it operates. PRESENCE IN INDIA Beginning with its first investment in Moga in 1961, Nestlé’s regular and substantial investments established that it was here to stay. In 1967, Nestlé set up its next factory at Choladi (Tamil Nadu) as a pilot plant to process the tea grown in the area into soluble

tea. The Nanjangud factory (Karnataka), became operational in 1989, the Samalkha factory (Haryana), in 1993 and in 1995 and 1997, Nestlé commissioned two factories in Goa at Ponda and Bicholim respectively. Nestlé India has commissioned in 2006 its 7th factory at Pant Nagar in Uttarakhand

NESLE MAGGI Maggi is a Nestlé brand of instant soups, stocks, bouillons, ketchups, sauces, seasonings and instant noodles. The original company came into existence in 1872 in Switzerland, when Julius Maggi took over his father's mill. It quickly became a pioneer of industrial food production, aiming at the improvement of the nutrition of worker families. It was the first to bring protein-rich legume meal to the market, which was followed by ready-made soup based on legume meal in 1886. In 1897, Julius Maggi founded the company Maggi GmbH in the German town of Singen where it is still established today. In parts of Europe, including German-speaking countries as well as the Netherlands, Czech Republic, Slovakia, Poland, and France, "Maggi" is still synonymous with the brand's "Maggi-Würze" (Maggi spice), a dark sauce which is very similar to East Asian soy sauce without actually containing soy[citation needed]. It was also introduced in 1886, as a cheap substitute for meat extract. It has since become a well-known part of everyday culinary culture in Switzerland, Austria and especially in Germany. The bouillon cube or 'Maggi cube' was introduced in 1908, which was another meat substitution product. Because chicken and beef broths are so common in the cuisines of many different countries, the company's products have a large worldwide market. Today Maggi is particularly well known in New Zealand, Australia, Pakistan, India, Malaysia and Singapore for its instant noodles. In West Africa, Maggi cubes are used as part of the local cuisine. Throughout Latin America, Maggi products, especially bouillon cubes, are widely sold with some repackaging to reflect local terminology. In the German, Dutch and Danish languages lovage has come to be known as "Maggi herb" (Ger. Maggikraut, Du. maggikruid or Da. maggiurt) because of a supposed resemblance to the taste of Maggi sauce.

MAGGI PRODUCTS Maggi Noodles MAGGI 2-MINUTE Noodles is one of the largest snack food brands in the country and defines the Instant Noodles category in the country. MAGGI 2-MINUTE Noodles has been renovated to provide 20% of the RDA* of Calcium and Protein for the core target group. It is available in 4 flavours: Masala, Chicken, Tomato and Curry.

Maggi Vegetable Noodles It is an innovative product and the first of its kind in India. Nestlé India used the Group's extensive Research and Development expertise to develop MAGGI Vegetable Atta Noodles which contain whole wheat and real vegetables. A 90g pack of MAGGI Vegetable Atta Noodles meets 20% of your child's RDA* for Protein and 35% of your

child's RDA** for Dietary Fibre. Taste Bhi , Health Bhi ! Dal Atta Noodles To provide the family with more good food, Nestlé India has now launched yet another innovative product - MAGGI Dal Atta Noodles, further building on the nutrition proposition of TASTE BHI HEALTH BHI. In addition to the wholesome nutrition of Dietary Fibre contained in whole wheat ( 'Atta'), the new product offers the goodness of protein coming from the unique combination of 'Atta' and 'Dal'. Every serve of MAGGI Dal Atta Noodles provides over 20% of a child's* daily requirement of dietary fibre and protein, therefore making it a healthy choice. .

Maggi Rice Noodles Mania Chaska Taste ka, Health Rice ka Maggi Rice Noodles Mania comes as another unique TASTE BHI HEALTH BHI offering from the house of MAGGI. The all-new exciting flavour range viz. Lemon Masala, Chilly Chow and Shahi Pulao to appeal to all members of the family across different regions of the country. The sheer range of flavours will fulfill the craving / MANIA for taste and the goodness of rice with ‘balanced energy’ (i.e. at least 60% Energy from carbohydrates, not more than 30% from fat and 10% from Protein) Maggi Sauces Nestlé India has always focused its efforts to better understand the changing lifestyles of consumers and their needs. Based on such insights, the Company continuously innovates and renovates. Recent examples are that of MAGGI Tomato Chatpat, a mix of Tomato, Ginger, Garlic & Coriander and Maggi Tomato Pudina mix of Tomato, Mint & Coriander, MAGGI Teekha Masala mix of Tomato, Cumin, Chillies & Coriander.

Maggi Healthy Soups Nestlé pioneered the dehydrated soups market in India and was the first to introduce tasty and convenient packaged soups. The new MAGGI Healthy Soups have been carefully prepared through the Research and Development efforts of Nestlé Group and are even more delicious, quick to prepare, convenient and healthy. Taste Bhi, Health Bhi!. MAGGI Healthy Soups contain real vegetables, are low fat, low cholesterol and free from synthetic colours and added MSG. These superior healthy soups are now available in an enhanced range of 10 delicious variants.

MAGGI MAGIC Cubes Maggi Magic Cubes are taste enhancers - "Chutki bhar Jadoo!" MAGGI MAGIC Cubes are available in two flavours - Vegetarian Masala and Chicken. Maggi Pichkoo Pichkoo is a small doy pack which makes MAGGI Tomato Ketchup affordable to a host of new consumers. Alongwith affordability, it's packaging makes it easy to handle and carry. It's endearing name, packaging and great taste evoke a resounding reaction. Maggi Cuppa Mania New Maggi Cuppa Mania has been launched keeping exactly the consumers likes and dislikes in mind as Maggi Cuppa Mania can be had anytime on the go. Maggi Cuppa Mania Offers delicious taste combined with goodness of real vegetables ,Comes in two mouth watering variants MAGGI CUPPA MANIA is an ideal offering for the new

generation pressed hard for time trying to juggle multiple roles all at once. Therefore the line… “Just add garam paani … Carry on jaani”

STRATEGIES OF MAGGI To cover the market every company has to go with some strategies. Maggi has also its own strategy to cover the market. Let us see the Initial strategies of Maggi:► Maggi has faced lot of hurdles in its journey in India. ► The basic problem the brand faced is the Indian Psyche. ► Initially Nestle tried to position the Noodles in the platform of convenience targeting the working women. ► However, the sales of Maggi was not picking up despite of heavy Media Advertising. ► To overcome this NIL conducted a research. ► NIL's promotions positioned the noodles as a 'convenience product', for mothers & as a 'fun' product for children. ► The noodles' tagline, 'Fast to Cook Good to Eat' was also in keeping with this positioning.

► They promoted the product further by distributing free samples. Giving gifts on return of empty packets, etc.

HURDLES FACED “Maggi is a trusted brand because it has understood the consumers’ evolving needs, and consistently innovated and renovated itself to make life easier and happier for them,”. But for being a trusted brand Maggi has also faced many hurdles. In 1990 the sale of Maggi was decline. Top Raman Noodles, Indo nissin a Japanese noodles had given Maggi a good competition. Some Maggi Products were also failed e.g. Dal Atta Noodles etc. Maggi launched some new products under their brand, but these products were not successful: Ketchups, Soups, Tastemakers,etc. But Maggi has taken care of consumers likes and dislikes and went through a good process of New Product Development to achieve the consumer satisfaction.

BIBLIOGRAPHY

Websites:1. www.google.com 2. www.yahoo.com 3. www.msn.com

4. Books:1. Marketing Management(Kotler)