on Product Strategies
• 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
• Nestle put nutrition as the core of their business..
• Nestle is a Swiss company founded in 1986 by Henri
• 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
• 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”..
September 26, 2014 3
What is the brand name that comes
to your mind when you hear the word
4th Oct, 2007 Tolani Institute of Management
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:
• -New Zealand
• -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
• Over the years Maggi has launched several
products under its Brand name.
The Birth in India
• 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
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.
•NIL’s promotions positioned the noodles as a ‘convenience
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
• gifts on return of empty packets ,etc.
• Effective Tagline Communication.
• Product differentiation strategy means how a
particular product is different from others on the
• 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 &
• 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
PRODUCT LEVELS: CUSTOMER VALUE
• Core benefit - “FAST TO COOK & GOOD
• 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.
The Economic Times, Aug12, 2010
Nestle had extended
Maggi noodles and
seasoning to the
Rs. 4 and Rs. 2
at select low-income
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
• Maggi Fun spots
• Supply in other nestle kiosks
• ITES/BPO employees
Scratch n Win Offers
Money back offer..
Sponsor school quiz..
•USP- Easy to cook & tasty
Perceived as made up of Maida not good
for health and calories..
Heavily dependent on one flavor ..
•Availability of New segments (e.g. old
•Increasing level of income of
consumers and fast life.
•Unexploited rural market..
ITC, the competitor provides higher
margins to its distributors and growing
Top Raman has adopted the ssttrraatteeggyy of
reducing the price of its product.
PORTER’S FIVE FORCES MODEL
Customer of Mind
set, Brand image
SEGMENTING TARGETING POSITIONING DIFFERENTIATIO
AGE KIDS FAST TO COOK,
GOOD TO EAT
EATING HABITS YOUTH 2-MINUTE
LIFESTYLE OFFICE GOING
• 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) to
• 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
INTRODUCTORY STAGE OF MAGGI
The product launched keeping in mind the
working women and children…
• It was the pioneer in the instant noodle
• Distribution channel
Producer -- Distributor --
Retailer -- Consumer
The initial pricing strategy was low pricing strategy
to make product affordable.
Promotion focuses on awareness and information
Promoted with the tag line
“ BAS 2 MINUTE.”
Promotion done by
- Giving gifts on empty
• Rapidly rising sales.
• Rising profits.
• Unit manufacturing cost declines.
• The marketing objective is to maximize
MAGGI GROWTH STAGE…
• Sales increased.
• 50% market share.
• No.1 brand.
• PRICE- prices were kept normal.
Entry of Competitor
PRODUCT- no any new changes
– PROMOTION-“GOOD TO EAT FAST TO
MARKET PENETRATION STRATEGIES
Promotional campaigns in school.
Focusing on kids
New product innovation according to the need of consumers:
-Veg. Atta Noodles
-Dal Atta Noodles
Availability in different packages:
-family packs(400 gms)
Conducting regular market research.
• 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.
- Maggi introduced wide variety of products like Dal
atta noodles, Chicken maggi, Maggi cuppa mania.
- Maggi still comes in very affordable prices starting
from Rs. 5, they reduced the quantity instead of
- 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.
• Sales started declining
• Profits are at decline
• Cost per customer still at low
• The marketing objective is to reduce
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
• New & Interesting TV
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
• 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
• 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…..
SUGGESTIVE PROMOTIONAL STRATEGIES
- 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.