MAGGI NOODLES “Taste bhi, Health bhi”

Preferred by whom and why??

“INSTANT FOOD” is preferred these days due to the following reasons:

1. Emergence of industrial society i.e. metropolitan cities 2. Reduced domestic servants3. Womenfolk taking to job4. Emergence of nuclear families5. Prices of raw materials6. New products7. Drudgery of work8. Convenience9. Increasing income10. Standard of living

• FMCG industry provides a wide range of consumables .The competition among FMCG manufacturers is also growing and as a result of this, investment in FMCG industry is also increasing, specifically in India.

• Nestle is a multinational packaged food company founded and headquartered in Vevey, Switzerland.

• It resulted from a merger in 1905 between the Anglo-Swiss Milk Company for milk products established by the page brothers in Switzerland in 1866.

• Basically the company started to meet the need of the milk in world war I.

• Henri Nestle developed a milk-based baby food and soon began marketing it . It was the first product of Nestle.

• The Maggi Company merged with Nestle in 1947. Today, Maggi is a leading culinary brand and part of the NESTLE family of fine foods and beverages.

INTRODUCTION

NESTLE PRODUCT LIST•Nestle milkmaid

•Ice cream

•Syrup

•Jams

•Honey

•Candies

•Nestle fresh and natural dahi

•Nestle slim milk

•Maggi sauces•Maggi pizza mazza

•Maggi pichkoo•Nestle iced tea

•Nestle munch•Nescafe sunrise

•Nescafe cappuccino

What is the brand name that comes to your mind when you hear the word

“NOODLES ”?

INTRODUCTION OF MAGGI 2-MINUTE NOODLES

It’s a Brand of instant noodle made by Nestle India Ltd.It was founded by the Maggi family in Switzerland in the 19th century.Nestle launched Maggi for the first time in India in the year 1982.The Brand is popular in: -Australia -India -Malaysia -New Zealand -Singapore -South Africa

Nestle wanted to explore the potential for such an instant food among the Indian market.It took several years and a lot of money for Nestle to establish its Noodles Brand in India.Now it enjoys around 90% market share in this segment.Over the years Maggi has launched several products under its Brand name.

INITIAL STRATEGIES OF MAGGI

Maggi has faced a 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.

(CONT.)

NIL’s promotions positioned the noodles as a ‘convenience product’ , for mothers & as a ‘fun’ product for children.

The noodle’s 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.

Effective Tagline Communication.

HURDLES FACED

Sales saw a decline in 1990’s: -Formulation changed from Fried base to Air dried base.

Competition increased in noodle segment: Top Ramen- Indo Nissin (Japanese Co.)

New product launched in market but failed: Dal Atta Noodles Sambhar Flavor

Maggi launched some new products under their brand, but these products were not successful: -Ketchups, Soups, Tastemakers, etc.

MARKET ANALYSIS

‘Instant Food' means simple, fast and convenient food.

The Indian instant food market is growing at the rate of 30- 35% per annum.

Trends Fuelling the Indian Instant Food Market: 1) Changing Demographics of the Indian Population 2) Convenience 3) Nutritional and Health Benefits 4) Urbanization 5) Growth of Organised Retail 6) Improvement in Packaging Technology

Maggi enjoys around 50% market share in this segment which is valued at around 250 crores.About 15-20 per cent of the total stock of both the leading retail stores is instant food. A survey carried out by the National Council of Applied Economic Research named Maggi the country's most valued FMCG brand.

MARKET SHARE

a: Introductiona-b: Growthb-c: Reduction in salesc: Re-Launchc-d: Market re-captured: Introduction of new variants

COMPETITOR ANALYSIS

The existing and potential competitors of Maggi can be categorized in the following ways:

-Other players in instant food market -Other substitutes consumed for snacks -Ready to eat and processed food

EMERGING NEW COMPETITORS:

- Value-added Dairy Products - Health-focused Snack Foods - Frozen Ready-to-eat Segment - Non-vegetarian Processed Foods

STRENGHTS:•Market leader•Brand loyalty•Distribution channels•Innovative flavors for Indian taste buds.

WEAKNESSES:•Heavily dependent on one flavor.•Minor distribution problems.•Health related issues.

OPPORTUNITIES:•Unexploited rural markets.•Increasing number of working youth.•Affinity of Indians to Chinese food.

THREATS:•Strong presence of regional competitors.•Competitive pricing(Top Ramen).

SWOT ANALYSIS

STPD ANALYSIS

SEGMENTATION: Based on lifestyle and habits of urban families.

TARGETING: Kids , Office going people

POSITIONING: With statements such as “2-minute noodles” and “Easy to cook, good to eat” .

DIFFERENTIATION: Taste, Flavors, Packaging.

SEGMENTING TARGETING POSITIONING DIFFERENTIATION

AGE KIDS FAST TO COOK, GOOD TO EAT

TASTE

EATING HABITS YOUTH 2-MINUTE NOODLES FLAVORS

LIFESTYLE OF OFFICE GOING PEOPLE TASTE BHI, HEALTH BHI

PACKAGING

WORKING WOMEN

(CONT.)

F

SUPPLIERSDistributors, Raw material suppliers,

PackagingF

F

F

F

NEW ENTRANTSNo potential threat of new entrants for

maggi noodles.

INDUSTRIAL RIVALRYTop Ramen,

Chowmein etc

BUYERSCustomer of Mindset, Brand image

SUBSTITUTESChowmein, fast

Food, Pasta

MICHAEL PORTER’S FIVE FORCES MODEL

MARKET PENETRATION STRATEGIES Promotional campaigns in school.

Advertising strategies: Focusing on kids

New product innovation according to the need of consumers: -Veg. Atta Noodles -Dal Atta Noodles -Cuppa Mania

Availability in different packages: -50 gms -100 gms -200 gms -family packs(400 gms)

Conducting regular market research.

CURRENT SCENARIO OF MAGGI

Leading Brand in India as well as World.

Reasonable competitive pricing.

Creative interaction blogs for customers: www.maggi-club.in

Focus mainly on health benefits.

- Focus on creating distinctive image, based on twin benefits of “INSTANT” and “HEALTHY” with emphasis on health conscious and rural market.

- 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.

- Foray into other food products like chips, chocolates etc under its sole brand name would not only help in Brand extension but will also enhance Maggi’s market share.

- Launch new advertisement campaign (T.V., Radio etc) with the Brand Ambassador.

SUGGESTIVE PROMOTIONAL STRATEGIES

THANKING YOU

AMITA PUNJANI

AAKRITI JUNEJA

ANKITA BERI

EKTA CHAWLA

GARIMA KHATRI

GAURAV CHAUDHARY

GAURAV SHARMA