It was part of brand management evaluation during semester - 4. We did critical analysis on the brand reach as well as how the brand returned in market with bang on strategy, though it does not cover the current problems faced by brand but still a must read for all the maggi lovers & brand management students.
3. A Brief Profile Of Nestle India Limited
Nestle India Limited is a wholly owned subsidiary of Nestle SA, a Vevey,
Switzerland based FMCG Company.
*Started in 1959
*Initially sold imported condensed milk and infant food in India.
*In 1962- NIL setup its first manufacturing unit in Moga, Punjab in order to
produce condensed milk products sold under the Milkmaid Brand
PRODUCT SEGMENT BRANDS
Milk Products and Nutrition Ceremeal , Everyday, Milkmaid
Nestle-Fresh โnโ natural dahi, Jeera
Rita, Milk and Slim Milk
Beverages Nescafe-Classic, Sunrise, 3 in
1,Milo
Prepared dishes and cooking aids Maggi
Chocolates and Confectionary Kitkat, Munch, Milkybar, Bar-one,
Polo, Eclairs, Acti-V, and Nestle
Milk Chocolate
4. Background
๏ผ Launched in India in 1982 as Maggi 2 Minutes Noodles, an instant food
product
๏ผ Initially targeted working women
๏ผ Initial failure-Research conducted-focus shifted- โConvenience to funโ
๏ผ NIL aggressively promoted Maggi noodles
๏ผ Famous taglines- Mummy Bhook Lagi Hai
Bas 2-minute
Fast To Cook Good To Eat
๏ผ Sales pickedup, gain acceptance
๏ผ Brand extensions
๏ผ Product extensions
๏ผ Market share increased
๏ผ Maggi sauces advertising were getting popular- Itโs Different
๏ผ Competition increased
6. In July 2001, Maggi replaced Nescafe, which
has been the core brand since 1998.
During recession phase 2001-02
Introduction of smaller packs at lower price
points.
50gm pack prices 5 Rs.
NIL Improvised existing distribution channel
In the 1st quarter of 2002, NIL launched Maggi
chinese noodles.
In December 2002, NIL extended soups brand
to maggi hot cup.(Tomato & Chicken)
7. Market penetration Strategy
โข Promotional stratergy in school
โข Advertising straight focus on kids
โข Innovative new products โ veg atta
noodles,dal atta noodles,cuppa mania
โข Availability of diff packages-
50,100,200gms,400gms-family pack
โข Conducting regular market survey
9. During 2003, NIL test-marketed ready to
cook recipe mixes:
Paneer-tikka, chicken biryani & chicken-tikka.
By 2003, India became the largest consumer
of maggi noodles in the world.
Market share of Maggi v/s Top Ramen
Maggi 80%
Top Ramen
19%
10. SWOT ANALYSIS
Strength
โข Market leader
โข Brand loyally
โข Distribution channels
โข Innovative flavors
Weakness
โข Heavily dept on one flavor
โข Health related issues
Opportunities
โข Unexploited rural market
โข Increasing no. of working
youths
โข Affinity of Indians to Chinese
food
Threats
โข Strong presence of regional
competitors
โข Competitive pricing (top
Ramen)
11. The Health Angle
๏In 2000โs NIL took measures to transform into
Health and wellness co.
๏In 2004 introduced Healthier products.
๏In march 2005,Maggi Brand took health route
launched โVeg atta noodlesโ.
๏Nutritional Value.
12. ๏Ad. Campaign of Veg Atta Noodles
๏Tagline โTaste bhi Health bhiโ.
๏NIL Spend heavily on Advertisement
Atta Noodles โ 50% spendings.
๏New Ad showed maggi for all family.
Mother-(Easy to cook healthy food)
kids -(Saying Good to Taste)
๏It was accepted by Indian public.
Launched 4 varients-
Masala,Tamato,Curry&Chicken.
13. ๏In Nov 2005,repositioned soups as โMaggi
Healthy Soupsโ
๏Tagline โTaste bhi Health bhiโ.
๏In Dec 2005,Enviornment became competitive
Dabur, Heinz, Hindustan Lever Ltd.
๏Focused on Ad on sauces & ketchup
โ Its differentโ.
๏Market share-Sauces & ketchups
Maggi-37%,Kissan-29%
14. Outlookโฆ..
๏ผ According to FICCI, FOOD AND BEVERAGE SURVEY
published in Febโ2006 shown rapid rising segments- health
foods, health foods supplements, convenience foods and
branded foods
๏ผ Changing life style and eating habits and increasing
purchasing power
๏ผ Increase in competition for Maggi
๏ผ Major competitor โITCโs Sunfeast