Maggie Growth Strategies

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This presentation contains the growth and market penetration of Nestle India

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Maggie Growth Strategies

  1. 1. Maggi takes the health route Submitted to:- Ms. Mamta Rampal Program Manager, ISMC. TAT-6
  2. 2. Nestle around the Globe <ul><li>Nestle is a Swiss company founded in 1866 by Henri Nestle. </li></ul><ul><li>Nestle market its products in 130 countries across the world. </li></ul><ul><li>Nestle sells over a billion product every day. </li></ul><ul><li>Nestle put the nutrition as the core of their business, Nestle main focus is on health and wellness. The main consideration of Nestle is Good Food, Good Life to all consumer. </li></ul>
  3. 3. Core of Nestle Business <ul><li>Good Food, Good Life </li></ul><ul><ul><li>Food and beverages plays a important role in people’s life- not only because of enjoyment and social pleasure of eating together, but more in more terms of personal health and nutrition. </li></ul></ul><ul><ul><li>Nestle is committed to provide their customer, consistent quality, safety as well as value for money and convenience. </li></ul></ul><ul><ul><li>Great taste is the fundamental of their products and consumer appreciation of good food. </li></ul></ul><ul><ul><li>Priority on nutrition, health and wellness. </li></ul></ul>
  4. 4. Objective of Nestle <ul><li>Good to know </li></ul><ul><ul><li>Factual information on nutrition content </li></ul></ul><ul><li>Good to remember </li></ul><ul><ul><li>Tips for healthy lifestyle, cooking and diet </li></ul></ul><ul><li>Good to talk </li></ul><ul><ul><li>Consumers call to their consumer services teams or log on to their website. </li></ul></ul>
  5. 5. Maggi in India <ul><li>Maggi noodles is a brand of instant noodles made by Nestle. </li></ul><ul><li>It was founded by the Maggi family in Switzerland in the 19th century. </li></ul><ul><li>Maggi is the iconic brand of Nestle. </li></ul><ul><li>Maggi has been Nestle’s flagship culinary brand not only in India, but globally as well. </li></ul>
  6. 6. Maggi in India <ul><li>Maggi in India is best known for its flagship product of instant noodles with its various desi sub-segments such as the traditional dal atta , veg atta and rice noodles along with their various variants, Curry, Masala, Tomato, Chicken in the traditional and Shahi Pulao, Lemon Masala and Chilly Chow in the rice noodle segments. </li></ul><ul><li>Nestle unleashed Brand Maggi in India almost 25 years ago in 1983 with the launch of its traditional ‘2-minute noodles’ in its masala , tomato and chicken flavours, followed by its curry flavour some years down the line. </li></ul>
  7. 7. Maggi in India <ul><li>Maggi launched in India at a time when the instant noodle was not that well known a category. </li></ul><ul><li>When Nestle India launched Maggi in the country, it used the tagline, ‘Fast to cook and good to eat’, to not only promote the product, but also to educate the ever growing aspirant consumer about the advantages of using it. </li></ul>
  8. 8. Need recognition of Indian Consumer <ul><li>There was a key need for a product that provides good quality food and at the same time was convenient. </li></ul><ul><li>Maggi visualized that there should be a product which take less time to cook and consumer uses that product to get fast relief from hunger. </li></ul><ul><li>First, Maggi targeted at the kids, because they know these segment want such kind of product from which they can get relief, whenever they feel hungry. </li></ul><ul><li>As the result, they came up with Maggi- 2minute Noodles. </li></ul>
  9. 9. Products of Maggi <ul><li>Maggi Stocks </li></ul><ul><ul><li>White Rice Seasoning </li></ul></ul><ul><ul><li>Chicken Stock </li></ul></ul><ul><ul><li>Chicken Stock- less salt </li></ul></ul><ul><ul><li>Beef Stock& Vegetables Stock </li></ul></ul><ul><li>Soups </li></ul><ul><ul><li>Cook up Soups </li></ul></ul><ul><ul><li>Instant Soups </li></ul></ul>
  10. 10. Products of Maggi <ul><li>2 minute Noodles </li></ul><ul><ul><li>Chicken flavor </li></ul></ul><ul><ul><li>Vegetables flavor </li></ul></ul><ul><ul><li>Pizza flavor </li></ul></ul><ul><ul><li>Curry flavor </li></ul></ul><ul><ul><li>Cheese flavor </li></ul></ul><ul><li>Ketchups </li></ul><ul><ul><li>Tomato </li></ul></ul><ul><ul><li>Chilli Garlic </li></ul></ul><ul><ul><li>Chilli </li></ul></ul><ul><ul><li>Extra-Hot Chilli </li></ul></ul>
  11. 11. STP Analysis <ul><li>Segmentation: </li></ul><ul><ul><li>Age </li></ul></ul><ul><ul><li>Life style </li></ul></ul><ul><ul><li>Eating habits of urban families </li></ul></ul><ul><li>Targeting </li></ul><ul><ul><li>Kids </li></ul></ul><ul><ul><li>Youth </li></ul></ul><ul><ul><li>Office Goers </li></ul></ul><ul><ul><li>Working women </li></ul></ul>
  12. 12. STP Analysis <ul><li>Positioning </li></ul><ul><ul><li>Easy to cook, Good to Eat </li></ul></ul><ul><ul><li>2-minute Noodles </li></ul></ul>
  13. 13. SWOT Analysis <ul><li>Strength </li></ul><ul><ul><li>Market leader in their segment </li></ul></ul><ul><ul><li>Strong brand loyal consumer base </li></ul></ul><ul><ul><li>wide range of distribution channel </li></ul></ul><ul><ul><li>Product according to the need of indian consumer </li></ul></ul><ul><ul><li>innovative product </li></ul></ul><ul><li>Weakness </li></ul><ul><ul><li>Product are dependent on each other </li></ul></ul><ul><ul><li>Not so much presence in rural market </li></ul></ul>
  14. 14. SWOT Analysis <ul><li>Opportunity </li></ul><ul><ul><li>Increasing number of working youth </li></ul></ul><ul><ul><li>Product has been acceptable in youth category </li></ul></ul><ul><ul><li>Shift to rural market </li></ul></ul><ul><ul><li>Changing preference of consumer toward Chinese food and fast food. </li></ul></ul><ul><li>Threat </li></ul><ul><ul><li>Price war with competitors </li></ul></ul><ul><ul><li>Strong presence of regional competitors </li></ul></ul>
  15. 15. Market Penetration Strategies Of Maggi Noodles <ul><li>Promotional campaigns in schools </li></ul><ul><li>Advertising Strategies </li></ul><ul><ul><li>Focusing on Kids </li></ul></ul><ul><li>Availability in different pack sizes </li></ul><ul><ul><li>Packing is the biggest plus point of Maggi market penetration </li></ul></ul><ul><ul><li>They have product available in all sizes to tap the categories of consumer </li></ul></ul><ul><li>New product innovations </li></ul>
  16. 16. According to BCG Matrix
  17. 17. Problem <ul><li>Maggi sales is declining in 1990s </li></ul><ul><li>Competition increased in noodles segment </li></ul><ul><li>New product in market but rejected by consumers, due to taste. </li></ul><ul><li>Maggi launched some new products under their brand, but these product were not so successful. </li></ul>
  18. 18. Question 1. <ul><li>Discuss the strategies undertaken by Nestle India Ltd. to create and establish a new product category. </li></ul>
  19. 19. Solution <ul><li>Nestlé SA, introduced the Maggi brand in India in 1982, with its launch of Maggi 2 Minute Noodles, an instant noodles product. </li></ul><ul><li>With the launch of Maggi noodles, NIL created an entirely new food category - instant noodles - in the Indian packaged food market. Because of its first-mover advantage, NIL successfully managed to retain its leadership in the instant noodles category even until the early 2000s. </li></ul>
  20. 20. Solution <ul><li>They launched the campaign, ‘Taste bhi health bhi’ and now its becomes synonymous with Maggi. </li></ul><ul><li>They changed the jingle of maggi instant noodles campaign, it was pretty catchy and went down well with the target audience children. </li></ul>
  21. 21. Solution <ul><li>NIL started offering a healthy product to its consumer, because they know very well that, if they have to tap the indian consumer, they have to focused mainly on the health benefits. </li></ul><ul><li>The company focused on wellness and nutrition factor to establish a new product category. </li></ul><ul><li>The company moved away from the ‘not-so-healthy’ maida to make its noodles, and launched the Maggi Veg Atta noodles followed by the Dal Atta Noodles and finally, the very recent rice noodle variants. </li></ul>
  22. 22. Question 2: <ul><li>What measures were undertaken in sustaining the image of a popular brand (maggi noodles) and the reason behind the brand extension of the same? </li></ul>
  23. 23. Solution <ul><li>Measures were under taken in sustaining the brand image of Maggi: </li></ul><ul><ul><li>Maggi focus on the wellness and nutrition </li></ul></ul><ul><ul><li>Changed their advertising campaign </li></ul></ul><ul><ul><li>Firstly, they positioned their product as to get fast relief from hunger, but they visualized and make their product for fun and adventure. </li></ul></ul><ul><ul><li>They came up with their popular character of Pankaj and Javed to communicate with target audience. </li></ul></ul><ul><ul><li>They went for sales promotion in school and offices, as the exercise of brand recall. </li></ul></ul>
  24. 24. Solution <ul><ul><li>They have also done some market research exercise, with regards of taste and health issues. This helped Maggi to force their consumer to think about them. </li></ul></ul><ul><ul><li>They have distributed free samples in the period of new launches and gift on return of empty pack. </li></ul></ul><ul><ul><li>Invite Housewives to send new innovative recipes made from Maggi and introduce rewards for the same, as a brand development and brand sustaining exercise. </li></ul></ul><ul><ul><li>Organizing contests , games and industrial visits for school kids to further strengthen the brand image. </li></ul></ul>
  25. 25. Reason behind the brand extension: <ul><li>NIL extended the Maggi brand to a variety of culinary products like soups, sauces and ketchups, and cooking aids. </li></ul><ul><li>They wanted to offer healthy' products under the Maggi brand, in a bid to attract health-conscious consumers. </li></ul><ul><li>Increasing competition from regional and some brand like Top ramen and HUL. </li></ul><ul><li>Health issues and preference of traditional food habits of indian consumer, is also a reason for the brand extension. </li></ul>
  26. 26. Reason behind the brand extension: <ul><li>They wanted a strong brand recall, the reason was that Maggi instant noodles were doing very well in the market and they were far away from competition. So, that Maggi wanted to used this positive point and went for brand extension. </li></ul><ul><li>They visualized that the image of Maggi is very strong in market, and there is potential for other product, so that they gone for brand image. </li></ul>
  27. 27. Question 3: <ul><li>What strategies were adopted by NIL in repositioning Maggi noodles? </li></ul>
  28. 28. Solution <ul><li>NIL introduced the Maggi brand to Indian consumers when it launched Maggi 2 Minute Noodles, an instant food product, in 1982. </li></ul><ul><li>At that time, Indian consumers were rather conservative in their food habits, preferring to eat traditional Indian dishes rather than canned or packaged food. </li></ul><ul><li>In fact, NIL was trying to create an entirely new food category, instant noodles, in India. </li></ul>
  29. 29. Solution <ul><li>Initially, the company targeted working women on the premise that Maggi noodles were fast to cook and hence offered convenience. </li></ul><ul><li>However, this approach failed as was evident from the fact that the sales of Maggi noodles were not picking up despite heavy media advertising. </li></ul><ul><li>To get to the root of the problem, NIL conducted a research, which revealed that it was children who liked the taste of Maggi noodles and who were the largest consumers of the product. </li></ul>
  30. 30. Solution <ul><li>After this, NIL shifted its focus from working women and targeted children and their mothers through its marketing. </li></ul><ul><li>NIL's promotions positioned the noodles as a 'convenience product', for mothers and as a 'fun' product for children. The noodles' tagline, 'Fast to Cook Good to Eat' was also in keeping with this positioning. </li></ul>

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