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Maggi-Nestle’s Problem Child ?Case StudyPresented By:-AonAmrutAnkitaArijitBhuvanChristopherDeepanshuDarshan
Index• Case Content• Background• SWOT Analysis• Problems• Measures & Outcomes• Extensions• Recommendations• Learnings & Co...
Content• Examination of brand & Line extension strategies• Promotion & Advertisement strategies• Rationale behind the laun...
Background• Nestlé S.A is a multinational packaged foods  company founded and headquartered in vevey,  switzerland• Set up...
Continued….• Entered India in 1959 through Nestle India• Manufacturing Operations began in 1962 from Moga,Punjab  to produ...
Giant In The Making• Maggi was founded by maggi family in  Switzerland in 19th century & was merged with  NESTLE in 1947.•...
Contd….•   Need recognition of Indian Consumer•   Varieties: Tomato,Masala,Curry,Chicken•   No competition•   Because of i...
SWOT AnalysisStrengths:•   Market leader in its segment•   Strong brand,loyal Consumer base•   Wide range of distribution...
 Weakness:• New Innovations were not always successful• Lack of research• Undermines Competitor’s threat Opportunity:• P...
Threats:• Price war with competitors• Strong presence of regional competitors
Problems,Measures & Outcomes Traditional food preference by Indian consumers• Company’s deviced a two point stratergy to ...
 Sales stagnated in 1995 at the previous year’s  level• Nestle was in a fix to solve this issue during the  year Knorr e...
 Forayed into Pickles under the maggi brand & south indian  food preparations• Very limited success Failure of Maggi Ton...
• Taste of the new product i.e Maggi macaroni  leads to its complete wipeout Knorr dethroned maggi as leader in soup  seg...
Extensions• The company continuously focuses its efforts to understand  the changing lifestyles of modern India and antici...
Recommendations• Emphasis on segments with age goups 25-35  and above• Advertise its products by depicting attributes  rel...
Learnings     &Conclusion
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Maggi presentation
Maggi presentation
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  1. 1. Maggi-Nestle’s Problem Child ?Case StudyPresented By:-AonAmrutAnkitaArijitBhuvanChristopherDeepanshuDarshan
  2. 2. Index• Case Content• Background• SWOT Analysis• Problems• Measures & Outcomes• Extensions• Recommendations• Learnings & Conclusion
  3. 3. Content• Examination of brand & Line extension strategies• Promotion & Advertisement strategies• Rationale behind the launches & failures under the Umbrella Brand: MAGGI• Problems Maggi faced during the years• Strategies formulated to overcome the problems• Recommendations & Conclusion
  4. 4. Background• Nestlé S.A is a multinational packaged foods company founded and headquartered in vevey, switzerland• Set up in 1866 by Henri Nestlé• Produces Beverages,milk products,cooking aids,processed foods,chocolates etc.• Presence in 83 Countries worldwide with 509 factories spread across the globe• World leader in coffee,mineral water & chocolates• Ranked 55 in 2002 Fortune 500 list and established itself one of the most successful FMCG company
  5. 5. Continued….• Entered India in 1959 through Nestle India• Manufacturing Operations began in 1962 from Moga,Punjab to produce condensed milk brand “Milkmaid”• In 1964 production of Nescafe started at the same factory• Some of the products including Condensed milk(100%),baby food(87%),Coffee(60%) & Ketchup(43%) were market leaders in their respective categories• By 2001 Nestle India was able to generate revenue of 18bn rupees with a net profit of 1.7bn• Was adjudged the third largest food company after HUL and Amul
  6. 6. Giant In The Making• Maggi was founded by maggi family in Switzerland in 19th century & was merged with NESTLE in 1947.• Introduced in India in 1982• Launched Instant Noodles,Soups,Ketchups & Pickles• Created Noodles market from scratch• Launched Maggi with a tagline “Fast to cook & Good to eat”
  7. 7. Contd….• Need recognition of Indian Consumer• Varieties: Tomato,Masala,Curry,Chicken• No competition• Because of its first-mover advantage
  8. 8. SWOT AnalysisStrengths:• Market leader in its segment• Strong brand,loyal Consumer base• Wide range of distribution channel• Effective Advertising• Innovative product range
  9. 9.  Weakness:• New Innovations were not always successful• Lack of research• Undermines Competitor’s threat Opportunity:• Product has been acceptable in youth category• Shift to rural market• Changing preference of consumer towards fast food
  10. 10. Threats:• Price war with competitors• Strong presence of regional competitors
  11. 11. Problems,Measures & Outcomes Traditional food preference by Indian consumers• Company’s deviced a two point stratergy to attract mothers on the convenience plank & lure kids on fun plank• Promotional activities of maggi included schemes offering gifts in return of empty noodles packs• Taglines like ‘Mummy bhookh lagi hai’, ‘Bas 2-minute’ , ‘Fast to cook – Good to eat’ became part of indian advertising In 1993, “Sweet Maggi” variant of maggi noodles was launched only to withdraw it at the end.• As the product was launched without any reseach,it failed to generate the desired sales. Nestle brought down the price of 100 gram pack of noodles to Rs 5 from Rs 7 which resulted into increase sales• Used thinner & cheaper packaging material,Moneysaver Multipacks
  12. 12.  Sales stagnated in 1995 at the previous year’s level• Nestle was in a fix to solve this issue during the year Knorr entered into soup business and launched ten flavours against Maggi’s four backed up by strong vegetarian theme• Maggi relaunched its soups under the maggi rich brand . Packaging was made much more attractive along with key competitive prices
  13. 13.  Forayed into Pickles under the maggi brand & south indian food preparations• Very limited success Failure of Maggi Tonite’s special• As the product was launched without any market research so the response to the whole range was very poor Competition from rival brand TOP RAMEN• Maggi macaroni was launched to deal with the growing popularity of noodels brand top ramen Pricing issues between Maggi macaroni & noodles• Company failed to justify price anomalies between the two amounting to decrease in market share
  14. 14. • Taste of the new product i.e Maggi macaroni leads to its complete wipeout Knorr dethroned maggi as leader in soup segment in the end of 1997• Relaunched maggi soups under the “Maggi rich” brand in 1998 to counter Knorr threat but was not counter-productive New formulation lead to decline of maggi in 1997• Brought back old maggi due to customer backlash with the tagline’ Ab sab kuch pehle jaisa’ in march 1999
  15. 15. Extensions• The company continuously focuses its efforts to understand the changing lifestyles of modern India and anticipate consumer needs in order to provide convenience, taste, nutrition, and wellness through its products.• Launching of new flavours• Packaged Coconut milk• Maggi tamarind sauce and Chinese Noodles• An offering that exemplifies ‘taste bhi health bhi’, MAGGI Vegetable Atta noodles is sucessful because it is loaded with everyone’s favorite MAGGI ‘masala’ and healthy because it now has more real vegetables and is packed with the power of fiber.
  16. 16. Recommendations• Emphasis on segments with age goups 25-35 and above• Advertise its products by depicting attributes related to health like nutritional values• Help customers perceiving the product as healthy• Foray into other food products like Chips,Chocolate etc. under its sole brand name
  17. 17. Learnings &Conclusion
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