Nestle Maggi

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Transcript of Nestle Maggi

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Nestle is a Swiss FMCG company founded in 1986 by Henri Nestle.

Basically the company started to meet the need of milk in world war 1. and milk bases baby food was the first product of Nestle. Today, Nestle market its product in 130+ countries.Core business of Nestle is Nutrition that it put in its products. Main focus health and wellness

Maggi came into existence in 1872, in Switzerland, when Julius Maggi took over his fathers mill.

Maggi is a Nestle brand instant soups, ketchup, sauces, seasonings and instant noodles.


With the launch of Maggi noodles, Nestle India Ltd. Created an entirely new food category : INSTANT NOODLES

The brand is popular in Australia, India, South-Africa , Brazil, New-Zealand , Brunei,Malaysia, Singapore, Sri Lanka ,Bangladesh,Fiji and the Philippines.


Tagline Easy to cook and good to eat

USP- Can be cooked in 2 min

Over the years Maggi has launched several products under its brand name


In 1982, Nestle India Ltd. (NIL), the Indian subsidiary of the global FMCG major, Nestle , introduced the Maggi brand in India.

Initially it was launched at Rs. 2.10 with a nearby of 100% margin.

With the launch of Maggi noodles, NIL(Nestle India limited) created an entirely new food category- instant noodles- in the Indian packaged food market.

Being the first-mover, NIL successfully managed to retain its leadership in the instant noodles category even until the early 2000s

In 2005, NIL started offering a range of new healthy products under the Maggi brand, in a bid to attract health-conscious consumers.MAGGI in INDIA

In May 2006, Nestle India Ltd(NIL) launched a instant noodles product called Maggi Dal Atta Noodles under the popular Maggi brand.This was the latest addition to the range of healthy products Nestle India ltd had been launching over the early 2000s.

The Dal Atta Noodles were made of whole wheat and contained pulses and positioned as a healthy instant noodles.

NIL offered a variety of culinary product such as instant noodles, soup, sauces and ketchups under the Maggi brand.

Over the years Maggi noodles became a popular snack food productin India.


Various Tag Lines of Maggi

People looking for a healthy snack when hungry

Young people and children from upper and middle class.

Tasty and healthy snack which can be prepared in 2 min.

SWOT Analysis of MaggiPrice wars with other noodle brandsPrivate brands like Tasty treatFoodles

Product Variants


Maggi 2- Minute Noodle Maggi Dal Atta Noodles Vegetable Atta Maggi noodlesMaggi Rice NoodlesMaggi Cuppa Mania


Teekha Masala , tomato masalaImli Khata mithaTomato ketchup & PudinaHot and sweetGinger, garlic & CorianderMaggi oriental Chilli GarlicGinger , garlic & Coriander

Product Variants

Soups Healthy

Chef StyleCream MushroomSweet Sour Tomato NoodlesTangy Tomato vegetables

Home styleCreamy ChickenMixed vegetableRich Tomato

Chinese StyleChinese Hot Sour ChickenChinese Sweet Corn Vegetable & ChickenChinese hot and sour Vegetables

3. Maggi pichkoo

Product Variants

Maggi - PricingItem

Maggi Masala CurryQuantity

100 gmPrice in Rs.

13Maggi Noodles Chicken95 gm12Maggi Masala Spicy Noodles100 gm12.50Maggi Rice Noodles9515Maggi Rice Noodles20030Maggi Dal Atta Noodles10013

Porter Competitive ModelINDUSTRIAL RIVALRYTop Ramen

BUYER POWERIndian Customer Psyche Brand imageSUPPLIERS POWERDistributorsRaw material suppliersPackagingSUBSTITUTESChow MeinFast food & pastaNEW ENTRANTSFoodles

A concept that provides a way to trace the stages of a products acceptance from its introduction (birth) to its decline (death).Stages In Product LIFE CYCLEIntroductionGrowthMaturityDecline1.2.3.4.PRODUCT LIFE CYCLE

Introduction StageObjective : Create product awarenessMost expensiveSmall Market SizeLow SalesCost per customer is highNegative ProfitsFew CompetitorsE.g. 3D TVsGrowth StageObjective : Maximizing Market ShareLess expensiveMarket size increasesRapidly Rising SalesCost per customer DeclinesRising Profits

E.g. Blue ray players

Maturity StageObjective : Maintain or extend market shareInvest wiselyMarket leaderSales are at PEAKCost per customer is lowHigh ProfitsMost Competitive time

E.g. DVD PlayersDecline StageObjective : Reduce ExpenditureSaturated MarketMarket ShrinksSales starts decliningCost per customer is lowProfits are at decline

E.g. Cassettes


Introduction StageGrowth StageMaturity StageDecline StageProductBranding & quality is establishedPatents & Trademarks are obtainedQuality is maintainedAdditional features and support services are addedFeatures may be enhanced to differentiate the product.Maintain and rejuvenate the product.Add new features and find new usesPriceLow penetration pricingHigh skimming pricingPrice is maintainedPrice may be lower because of competitionCost is reducedTarget is on loyal niche customers.Place or DistributionSelective until customers accept the productDistributions channels are added.Becomes more intensive and incentive.Liquidate the remaining inventory.PromotionAimed at innovators and early acceptors.Build product awarenessAimed at a broader audienceEmphasize product distributionDiscontinue the product.


Introductory StageMAGGI was launched keeping in mind the working women and children

No competition

High production cost

Pioneer in the instant noodle market

The initial pricing strategy was low to make product affordable

Promotion Promotion focuses on awareness and information with the tag line BAS 2 MinutePRODUCT LIFE CYCLE of MAGGIDistribution channel

PRODUCT LIFE CYCLE of MAGGIGrowth StageSales were increased by 50% share

No. 1 brand

Prices were kept normal & no changes in product

Promotion Good to eat fast to cook


Market penetration strategies by conducting regular market research

Promotional campaigns in school

Advertising Strategies : focusing on kids

New product innovation according to the need of the customersVeg. Atta noodles , Dal Atta Noodles, Cuppa Mania

Availability in different packages50 gms , 100 gms, 200 gms, 400gmsPRODUCT LIFE CYCLE of MAGGI

Growth Stage

Introduced new variety

Big time promotional offers

Market Saturation & Slow down in sales

Product Maggi introduced wide variety of products like Atta noodles, chicken Maggi, Maggi Cuppa mania

Price- Maggi still comes in very affordable prices starting from Rs. 5 they reduced the quantity instead of increasing the pricesPRODUCT LIFE CYCLE of MAGGIMaturity Stage

Become more intensive and adopted various intensive programme for encouraging the product over their competitors in the market.

Differentiation with competitors

Classic noodles- 5 to 10 years

Veg Atta noodles- health conscious

Rice mania - teenagers

Cuppa mania - office goersPRODUCT LIFE CYCLE of MAGGIMaturity Stage

Sales saw a decline in 19990s

Formulation changed from fried base to air dried base

New product launched but failed

Dal Atta noodles of sambur flavor

Tough competition from TOP RAMENPRODUCT LIFE CYCLE of MAGGIDeclining Stage

In2005, based on consumer needs and evolving trends for more whole grain based products ,Nestle India launched Maggi vegetables Atta noodles

Extensive research and development expertise to develop Maggi vegetable Atta noddle's.

Maggi vegetable Atta noodles will provide the dietary fiber of whole wheat top facilitate good health and wellness.


Indian Psyche : The basic problem the brand faced is Indian psyche. Indian palate is not too adventurous in terms of trying new tastes. So a new product with a new taste that too from a different culture will have difficulty in appealing to Indian market.Failure CausesWHY ATTA NOODLES WAS A FAILURE

Price : the price of Atta noodle was little more than 2 minute noodle

False claims: In oct. 2008, Nestle mistakenly aired an advertisement that noodle help to build strong muscles and bones. The British advertising standards authority said that it was a false claim.

Not purely veg : Maggi Noodles also contains the additives E150d and E627. E627 is partly prepared from fish and thus is not suitable for vegetarians. E150d is sometimes made from genetically modified maize.Failure CausesWHY ATTA NOODLES WAS A FAILURE

Lack of essential nutrients : The new Maggi Atta noodles as can be seen from the fig. Lacked essential vitamins A, and C , also the fat content is more than carbohydrates.

Targeted- health conscious people but Atta noodle did not appealed them because of other substitute supplements in the market.


They should conduct test marketing before launching new product.

Focus on creating distinctive image, based on twin benefits of instant and healthy

Conduct promotional campaigns at schools in small towns with population more than 10,000.

Strengthen the distribution channel of the rural areas within 100 KM, of all the metros.

Launch new advertisement campaign (TV, radio and print media commercials) with the brand ambassador.

Conduct market research to find out the market penetration of the product in the rural areas covered.SUGGESTIVE PROMOTIONAL STRATEGIES