MAGGI BEST MARKETING STRATEGIES

Presentation on Product Strategies

(MAGGI)

BY-DEEPJYOTI KONWAR

About Nestle• 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.

• It market its products in 130 countries across the world..

• Nestle put nutrition as the core of their business..

• Nestle is a Swiss company founded in 1986 by Henri Nestle

• 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.

• Main focus is on health and wellness..

• “Good Food, Good Life to All Consumers”..

April 12, 2023 3

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

“NOODLES ”?

The Brand Maggi

4th Oct, 2007 Tolani Institute of Management studies

STORY 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..

•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.

• Now it enjoys around 90% market share in this segment.

• Over the years Maggi has launched several products under its Brand name.

• Nestlé India Ltd.

(NIL), the Indian subsidiary of the global FMCG major, Nestlé SA, introduced the Maggi brand in India in 1982, with its launch of Maggi 2 Minute Noodles, an instant noodles product.

• initially priced at Rs.2.10 with a close 100% margin…

The Birth in India

Taste Bhi, Health BhiTaste Bhi, Health Bhi

PRODUCT VARIANTS

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.

PRODUCT DIFFERENTIATION

• Product differentiation strategy means how a particular product is different from others on the basis of:

• Form, Features Performance quality Convenience Durability, Reliability, Style……….

• the form shape, size, physical structure of Maggi is very attractive as it is easy to carry, comes in various packs and sizes according to customers convenience..

• The various features of Maggi noodles are first of all its perfect taste according to the Indian touch & spices

• performance level of Maggi is excellent there are various other brands offered target market, but Maggi prevailed as the winner out of them..

• Quality is the main factor on which emphasizes as it is Maggi’s main strength which provides Maggi an edge over its competitors ..

• Maggi products are durable as due to its preparation these products are easy to store, have a long shelf life and can be stored at any given temperatures which is tested and approved.

• Reliability is also one of Maggi’s strength, as one can always rely on a Maggie product for a particular taste which it guaranties..

• • It is an Indian customer’s psyche that “whatever

looks good and feels good would be of good quality” so Maggi packs had been designed keeping in mind the same concept

•

The 4 P’s

MAGGI-Product mix

• MAGGI 2-MINUTE Noodles

• MAGGI Vegetable Atta Noodles

• MAGGI CUPPA MANIA

• MAGGI Vegetable Multigrain Noodles

PRODUCT LEVELS: CUSTOMER VALUE HIERARCHY

• Core benefit - “FAST TO COOK & GOOD TO EAT”.

• Basic product benefit - good taste with proper nutrition levels and good health.

“TASTE BHI HEALTH BHI”

• Expected product benefit - proper and a good package & fully packed seasoning tastemaker & affordable prices.

MAGGI-Pricing

Maggi 2-Minute Noodles (Chicken)

95 gms 12.00

Maggi 2-Minute Noodles (Curry)

100 gms

13.00

Maggi 2-Minute Noodles (Masala - spicy)

100 gms

12.50

Maggi Rice Noodles 95 gms 15.00

Maggi 2-Minute Noodles (Veg atta)

200 gms

30.00

Maggi Dal Atta Noodles 100 gms

13.00

The Economic Times, Aug12, 2010

Nestle had extended

Maggi noodles and seasoning to the

bottom-of-the-pyramid segment by selling

Rs. 4 and Rs. 2 packs

at select low-income markets like Mumbai's Dharavi.

MAGGI-PLACEMENT

The distribution network is well spread almost everywhere in India,as it is easily available in

all kirana stores, retail store etc.

• Whenever, Wherever, However • Connecting with Customers out of

home…on the move• Maggi Fun spots• Supply in other nestle kiosks• ITES/BPO employees

MAGGI: Promotion

Sales PromotionExchange schemesPrice-off offerScratch n Win OffersMoney back offer..Sponsor school quiz..Awareness campaign..

AdvertisementEffective Taglines

Video

Competition Analysis

SWOT analysisSWOT analysisStrength Market leader

•USP- Easy to cook & tasty

•Variety

•Brand loyalty

•Advertising strategy..

•Distribution channels

Weakness

Perceived as made up of Maida not

good for health and calories..

Heavily dependent on one flavor ..

Opportunities

•Availability of New segments (e.g.

old age people)

•Increasing level of income of

consumers and fast life.

•Unexploited rural market..

Threats

ITC, the competitor provides higher

margins to its distributors and

growing fast.

Top Raman has adopted the

strategystrategy of reducing the price of

its product.

F

SUPPLIERSDistributors, Raw

material suppliers,Packaging

F

F

F

F

NEW ENTRANTSFoodles

INDUSTRIAL RIVALRY

Top Ramen, Chowmein etc

BUYERSCustomer of Mindset, Brand image

SUBSTITUTESChowmein, fast

Food, Pasta

PORTER’S FIVE FORCES MODEL

SEGMENTING TARGETING POSITIONING DIFFERENTIATION

AGE KIDS FAST TO COOK, GOOD TO EAT

TASTE

EATING HABITS YOUTH 2-MINUTE NOODLES

FLAVORS

LIFESTYLE OFFICE GOING PEOPLE

TASTE BHI, HEALTH BHI

PACKAGING

WORKING WOMEN

STPD ANALYSIS

•PRODUCT LIFE CYCLE OF MAGGI

INTRODUCTION…

• The course of a products sales and profits over its lifetime is called the Product Life Cycle..

• Product life cycle is a concept that provides a way to trace the stages of a product’s

acceptance , from its introduction (birth) toits decline..

STAGES IN PLC…

• Introduction Stage..

• Growth Stage..

• Maturity Stage..

• Decline Stage..

PLC OF MAGGI

TIME

Introduction Stage..

• Sales growth tends to be slow at this stage.

• Cost per customer is high.

• Negative profits.

• Competitors are few.

The marketing objective is to create product awareness.

. INTRODUCTORY STAGE OF MAGGI

The product launched keeping in mind the working women and children…

•No competition

• It was the pioneer in the instant noodle market.

• Distribution channel Producer -- Distributor --

Retailer -- Consumer

INTRODUCTION CONT…

• PRICING The initial pricing strategy was low pricing

strategy to make product affordable.

• PROMOTION Promotion focuses on awareness and information Promoted with the tag line “ BAS 2 MINUTE.” Promotion done by - Giving gifts on empty

packets.

Growth Stage…

•Rapidly rising sales.

•Rising profits.

•Unit manufacturing cost declines.

•The marketing objective is to maximize market share.

MAGGI GROWTH STAGE…

• Sales increased.

• 50% market share.

• No.1 brand.

• PRICE- prices were kept normal.

PRODUCT- no any new changes

– PROMOTION-“GOOD TO EAT FAST TO

COOK”

Entry of Competitor

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.

Maturity Stage…

•Sales are at peak.

•Profits are high.

•Cost per customer low.

•The marketing objective is to

maintain or extend the market share.

MAGGI MATURITY STAGE

•Introduced new Variety.– Price Rs. 5 Onwards.– Big Time Promotional Offers.– Slow Down In Sales.– Market Saturation.

MATURITY CONT…

PRODUCT - Maggi introduced wide variety of products like Dal

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 price.

DISTRIBUTION - Distribution became more intensive. Adopted

various intensive programme for encouraging the product over their competitors in the market.

Segmentation To Differentiation

•Classic Noodles - 5 to 10 yrs..

•Veg. Atta Noodles - health conscious.

•Rice Mania – teenagers..

•Cuppa Mania - office goers.

Decline Stage…

•Sales started declining

•Profits are at decline

•Cost per customer still at low

•The marketing objective is to reduce the expenditure

MAGGI DECLINE STAGE…

Sales saw a decline in 1990’s. -Formulation changed from fried

base to . air dried base.

New product launched but failed. -Dal atta noodles of sambur flavour. Tough competition from TOP RAMEN.

Reintroduction of MAGGI Noodle…

• Reintroduced in 1999

• Increased Distribution

• Focus on new segments

of Society

• New & Interesting TV

Commercial

CURRENT SCENARIO OF MAGGI

• Leading Brand in India as well as World.

• Reasonable competitive pricing.

• Maggi’s share of instant noodles, on an all-India basis, across urban markets, has slipped consistently between December ’09 to July ’10. While Maggi instant noodles had a 90.7% share in December ’09, the share dropped to 86.5% in July ’10 on an all-India basis..

• Maggi’s market share is certain to get impacted , but add that Nestle has the potential to expand the Rs 1,300-crore instant noodles category – which itself is growing at a rapid 15% annually

MARKET RESEARCH

Cont…

MARKET SHARE

market share

maggi, 86.5, 86%

others, 13.5, 14%

maggi

others

TO conclude…• Here are some who leads called market leader

and there are some who follows, called follower. Maggi has been a leader for decades and it is Maggi who educated Indian consumer about noodles.

• Of course, their market share might got depleted in course of time, by the entry of some very big players but Maggi will not sit silent. They will also reinforce their activities which will ultimately benefit the consumer.

• People will definitely taste for a change, but it is very difficult to change ones taste bud and the top of mind game, as Maggi has become a generic name in India for their long presence…..

- 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

THANKYOU