Subject category:
Strategy and General Management
Published by:
International Institute for Management Development (IMD)
Version: 02.10.2012
Length: 21 pages
Data source: Field research
Abstract
Nestle launched MAGGI instant noodles in India in 1983. At that time MAGGI was not a power brand in the Indian market and noodles were fairly alien to the Indian consumer. Nestle grew MAGGI to become one of the top food brands in India and built the instant noodles from nothing to 15.8 billion by 2010, a category that was highly profitable and growing at 22% a year. The case describes the four-part approach that Nestle used to accomplish this: adapting its product from a soupy noodle to a dry cake and formulating a taste that would appeal to the Indian palate across the entire country; strengthening its competitive position by attending to each element of the value chain - R&D, manufacturing, supply chain, sales and marketing; growing the category through product innovation and go-to-market innovation; and retaining a leadership position in the face of competition from other MNCs by continuous innovation and willingness to cannibalise its own products. The case illustrates how multinational corporations (MNCs) can capitalise on the huge opportunities available in the Indian market. While the market is potentially huge, the challenges in developing it are also daunting. Success requires persistence and entrepreneurship at multiple levels of the corporation. In the case of Nestle, top management at its Swiss headquarters, the country head in India and the front line product champion in India all played their parts in an aligned manner. The case illustrates how an MNC can blend local responsiveness with its global strengths to create a winning position in the Indian market.
Location:
Industry:
Size:
2011, revenues of CHF83.6 billion, operated in 86 countries worldwide and employed 281,000 people
Other setting(s):
2008 to present
Subject category:
Strategy and General Management
Published by:
International Institute for Management Development (IMD)
Version: 02.10.2012
Length: 12 pages
Data source: Field research
Subject category:
Strategy and General Management
Published by:
International Institute for Management Development (IMD)
Length: 15 minutes
Data source: Field research
Notes: File size 957MB. Click for more information.
About
Abstract
Nestle launched MAGGI instant noodles in India in 1983. At that time MAGGI was not a power brand in the Indian market and noodles were fairly alien to the Indian consumer. Nestle grew MAGGI to become one of the top food brands in India and built the instant noodles from nothing to 15.8 billion by 2010, a category that was highly profitable and growing at 22% a year. The case describes the four-part approach that Nestle used to accomplish this: adapting its product from a soupy noodle to a dry cake and formulating a taste that would appeal to the Indian palate across the entire country; strengthening its competitive position by attending to each element of the value chain - R&D, manufacturing, supply chain, sales and marketing; growing the category through product innovation and go-to-market innovation; and retaining a leadership position in the face of competition from other MNCs by continuous innovation and willingness to cannibalise its own products. The case illustrates how multinational corporations (MNCs) can capitalise on the huge opportunities available in the Indian market. While the market is potentially huge, the challenges in developing it are also daunting. Success requires persistence and entrepreneurship at multiple levels of the corporation. In the case of Nestle, top management at its Swiss headquarters, the country head in India and the front line product champion in India all played their parts in an aligned manner. The case illustrates how an MNC can blend local responsiveness with its global strengths to create a winning position in the Indian market.
Settings
Location:
Industry:
Size:
2011, revenues of CHF83.6 billion, operated in 86 countries worldwide and employed 281,000 people
Other setting(s):
2008 to present
Related
Subject category:
Strategy and General Management
Published by:
International Institute for Management Development (IMD)
Version: 02.10.2012
Length: 12 pages
Data source: Field research
Subject category:
Strategy and General Management
Published by:
International Institute for Management Development (IMD)
Length: 15 minutes
Data source: Field research
Notes: File size 957MB. Click for more information.