MARKET PENETRATION STRATEGY OF MAGGI NOODLES

Introduction

• A brand of Nestle• Launched in the year 1983• Initially targeted at Working Women• Then repositioned itself to target Kids• Market Driver in the Instant Noodles Category• Currently enjoys a market share of about 80%

1 9 8 3 1 9 9 7 1 9 9 9 2 0 0 4

Tim e

Growth

a : Intro duc tio na -b: G ro w thb-c : R e duc tio n in s a le s

c : R e -La unc hc -d: M a rk e t re -c a ptured: Intro duc tio n o f ne w va ria nts

a

b

c

d

Market Research

• Objective:• To find out the market penetration of Maggi noodles• Research methodology:• (i) Target Area: Andheri, Dadar, Parel• (ii) Shopkeeper Sample Selection: Mall, General • Store, Medical Store, Bakery, Paan-Bidi Shop• (iii) Customer Sample Selection: School Kids, • House Wives, Office Goers• (iv) Shopkeeper Sample Size: 30• (v) Customer Sample Size: 50

Research Findings

SWOT Analysis

Strengths Weaknesses Opportunities Threats

Market leader Heavily dependent on One flavour

Unexploited rural markets

Strong presence of regional competitors

Brand loyalty Minor distribution problems

Increasing number of working youth

Competitive pricing (Top Ramen)

Distribution channels

Health related issues

Affinity of Indians to Chinese food

Innovative flavours for Indian taste buds

Advertising strategy

STPD Analysis

• Segmentation: Based on lifestyle and habits of urban families

• Targeting: Kids, Office goers• Positioning: With statements such as “2

minute noodles” and “Easy to cook, good to eat”

• Differentiation: Taste, Flavours, Packaging

BCG Matrix

Michael Porter’s Five Forces Model

I n d u strial

R ivalryT o p R am en ,

C ho w m een etc .

N ew E ntrants

N o p o te ntia lthre a t o f ne we ntra nts fo r

m a ggi no o d le s

B u y ersC u s to m e rM ind s e t,

B ra nd Im a ge

SuppliersD is trib uto rs

R a w m a te ria ls u p p lie rs ,P a c k a ging

Su b stitu tesC ho w m e e n,F a s t fo o d ,

P a s ta

Market Penetration Strategies Of Maggi Noodles

• Promotional campaigns in schools

• Advertising Strategies• Power of 5• Availability in different pack sizes• New product innovations

Brand Recall and Future Trends• Introducing a fictitious character who can

connect with kids for better brand recall• Organizing contests , games and industrial visits

for school kids to further strengthen the brand image

• Invite Housewives to send new innovative recipes made from Maggi and introduce rewards for the same

• Foray into the Chinese food segment by introducing branded products for chowmeen, schezwan and hakka noodles