Nestle Maggi

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 father’s mill.

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

ABOUT MAGGI

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.

ABOUT MAGGI

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

ABOUT MAGGI

• 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.

MAGGI in INDIA

Various Tag Lines of MaggiEasy to cook good to eat

Health bhi , taste bhi

Bas 2-Minute

Mummy, bhook lagi hai

STP

Segment Target group Positioning

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.

Strength• Market leader• Brand loyalty• Varieties & flavors• Strong Parent brand• Excellent advertising &

product reach• Availability

Weakness• Media generated news

about health issues• Alleged presence of lead

hurt its brand image

Opportunity• Untapped rural markets• DINKS• Single professionals• Newer tastes

Threats

SWOT Analysis of Maggi

• Price wars with other noodle brands

• Private brands like Tasty treat

• Foodles

Product Variants

1.Noodles

•Maggi 2- Minute Noodle •Maggi Dal Atta Noodles •Vegetable Atta Maggi noodles•Maggi Rice Noodles•Maggi Cuppa Mania

2.Sauces

•Teekha Masala , tomato masala•Imli Khata mitha•Tomato ketchup & Pudina•Hot and sweet•Ginger, garlic & Coriander•Maggi oriental Chilli Garlic•Ginger , garlic & Coriander

Product Variants

4.Soups Healthy• Chef Style

a) Cream Mushroomb) Sweet Sour Tomato Noodlesc) Tangy Tomato vegetables

• Home stylea) Creamy Chickenb) Mixed vegetablec) Rich Tomato

• Chinese Stylea) Chinese Hot Sour Chickenb) Chinese Sweet Corn Vegetable & Chickenc) Chinese hot and sour Vegetables

3. Maggi pichkoo

Product Variants

Maggi - PricingItem

Maggi Masala Curry

Quantity

100 gm

Price in Rs.

13

Maggi Noodles Chicken 95 gm 12

Maggi Masala Spicy Noodles

100 gm 12.50

Maggi Rice Noodles 95 15

Maggi Rice Noodles 200 30

Maggi Dal Atta Noodles 100 13

Porter Competitive Model

INDUSTRIAL RIVALRY•Top Ramen

BUYER POWER• Indian Customer

Psyche • Brand image

SUPPLIERS POWER• Distributors• Raw material

suppliers• Packaging SUBSTITUTES

• Chow Mein• Fast food & pasta

NEW ENTRANTS• Foodles

A concept that provides a way to trace the stages of a product’s acceptance from its introduction (birth) to its decline (death).

Stages In Product LIFE CYCLE1.Introduction2.Growth3.Maturity4.Decline

1. 2. 3. 4.

PRODUCT LIFE CYCLE

Introduction Stage • Objective : Create

product awareness• Most expensive• Small Market Size• Low Sales• Cost per customer is

high• Negative Profits• Few CompetitorsE.g. 3D TVs

Growth Stage • Objective : Maximizing

Market Share• Less expensive• Market size increases• Rapidly Rising Sales• Cost per customer

Declines• Rising Profits

E.g. Blue ray players

Maturity Stage • Objective : Maintain or

extend market share• Invest wisely• Market leader• Sales are at PEAK• Cost per customer is low• High Profits• Most Competitive time

E.g. DVD Players

Decline Stage • Objective : Reduce

Expenditure• Saturated Market• Market Shrinks• Sales starts declining• Cost per customer is

low• Profits are at decline

E.g. Cassettes

PRODUCT LIFE CYCLE

http://productlifecyclestages.com/product-life-cycle-stages/introduction/




Introduction Stage Growth Stage Maturity Stage Decline Stage

Product • Branding & quality is established

• Patents & Trademarks are obtained

• Quality is maintained

• Additional features and support services are added

• Features may be enhanced to differentiate the product.

• Maintain and rejuvenate the product.

• Add new features and find new uses

Price • Low penetration pricing

• High skimming pricing

• Price is maintained • Price may be lower because of competition

• Cost is reduced• Target is on loyal

niche customers.

Place or Distribution

• Selective until customers accept the product

• Distributions channels are added.

• Becomes more intensive and incentive.

• Liquidate the remaining inventory.

Promotion • Aimed at innovators and early acceptors.

• Build product awareness

• Aimed at a broader audience

• Emphasize product distribution

• Discontinue the product.

PRODUCT LIFE CYCLE- Marketing Mix

Introductory Stage

MAGGI 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 Minute”

PRODUCT LIFE CYCLE of MAGGI

Consumer

Retailer

Distributor

Producer

Distribution channel


Growth Stage

• Sales 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, 400gms


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 prices


Maturity 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 goers


Maturity 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 RAMEN


Declining 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.

WHY ATTA NOODLES WAS A FAILURE

• 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 Causes


• 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 Causes


• 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.

Failure Causes


• 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

Nestle Maggi

Food

Transcript of Nestle Maggi