Nestle has recently announced that they are working on 2-3 dozen more products in existing categories in India. The brand is currently working on consolidating its portfolio as it recognizes that the Indian market is one that is huge, and, more importantly, continuing its steady growth. The Indian arm of this company is headquartered in Gurgaon and is planning to launch these new products over the coming years.
Suresh Narayanan, the chairman and managing director of the Indian vertical said: “At least two to three dozen projects are on the anvil,”. He also said the brand plans to be aggressive, however, he did not reveal any timelines regarding the same. Speaking of its new launches, Nestle recently launched a flavored yogurt that tastes like bitter gourd. This launch came after its entry into the breakfast cereals market a year ago.
After its popular brand, Maggi, was banned in India, Nestle went on a spree of innovation. During this ban, the company launched 39 new products from 2016-2018. However, many of these products have been discontinued, according to data released during an investor presentation. Since the ban, Nestle has been pushing for some diversification in order to prevent facing such a huge crisis.
An expert analyst, when asked about Nestle’s new upcoming product launches, said “Nestlé has typically been conservative when it comes to innovation in India as it has traditionally focused on the bottom line. However, that has been changing over the last few years as it is investing in new products,” He also added that “Some blockbuster products will be good for the company,”.
Nestle has recently introduced new products in a range of segments like breakfast cereals, dips, and spreads, nutrition bars, ready to drink milk beverages and premium chocolates. It has also extensively reworked its distribution systems in order to get these products out to more consumers.
While all of this is going on, Nestle is remaining cautious about its spending. It is fully prepared to discontinue any products that do not get the response they want for it to be a success. Moreover, they have also cut back on their advertising and marketing costs in an effort to save on their margins. In fact, in 2018, the brand only spent 7-8% on advertising efforts.
Mr. Narayanam also announced the launch of a new website called AskNestle.com, which will function only in India. This has been done in order to offer consumers scientifically validated information on their recipes and nutrition so that a Maggi-like fiasco does not occur again. The website is currently functioning as a platform that is geared towards disseminating information. Later, according to Mr. Narayanam, it may grow into something bigger.