PRODUCT LAUNCH OF MAGGI Nestle aspired to create a Maggi kitchen Nestle observed a burgeoning craze for Chinese food & easy to cook meals. Nestle launched Maggi noodles in 1983. Initially priced at Rs. 2.10 with a close to 100% margin. Product targeted towards middle class of metros and tier-1 cities. Product was positioned as an easy to cook meal. Target customers were children and youth.
The 4 Ps Product Ready to cook meal Variants for different segments Price Differentiated packaging Lower price point strategy. Place Target rural market Target hawkers/roadside eating joints Kiryana stores Promotion Prime time electronic media advertisements Awareness campaigns Sponsor school quiz
Bcg-matrix Market share-80% Market Growth- 15% Star Question 20% MAGGI NOODLES Market Growth Rate 10% Cash cows Dogs 0% 10X 1 X .1 X Relative market Share
2 Types Distribution – Traditional ( Kirana Stores) , Institutional (Food outlets
6% Margin from Nestle
Has to pay in advance to Nestle but has to give on credit to Retailers
Target small & big shops both
10% Margin from Distributor and goes to 15% for new and promotional products.
Area space brought by Nestle for promotional purposes
Sampling (Wet and Dry ) done here for promotional purpose
Competitor – Top Ramen Nearest Competitor Innovation Cup Noodles Curry Noodles Major portion of market share in cup noodles market Positioned as a easy to cook meals not snack items Target audience – Adults and teenagers ,16-35 years old Issues : Lacking in promotional activities, apart from Initial Shahrukh Khan campaign Distribution issues – Earlier using Marico distribution channel now making their own channel.