Submitted by :-Group 5 Advait Gautam Bhobe Debjani Barua Deepinder Singh Nash Ian Rodricks Sagar Bhisham Darira Sudipto Halder
Nestlé India is a subsidiary of Nestle Switzerland headed by Peter Brabeck- Letmathe. Nestlé India provides consumers with products of global standards and is committed to long-term sustainable growth and shareholder satisfaction. The company is known for its brands in the Milk Products & Nutrition, Prepared Dishes, Cooking Aids, and Chocolates & Confectionery segments. Nestlé leads the value sales of noodles in India with a market share of 90%. Evidence to Nestlés domination of sales of plain noodles is the fact that India accounts for the highest sales for the company for its instant noodles brand Maggi, among all its global offices. With seven factories and a large number of co-packers, it has grown into India‟s largest food company. The biggest brand in Nestle‟s portfolio is Maggi (it overtook Nescafe about ten years ago).
*Initially when it was launchedin India it was targeted Nestle was founded in *Nestles Maggi noodles is the toptowards wrong target group: *Even though it has been brand in the instant noodlesworking women. nearly three decades, the 1866 by Henri Nestle. segment of India which has grown*After conducting research brand has not faced any Nestle markets its to an estimated Rs200 crore & serious competition. contributes to around 10% ofthey found out the biggest products in 130 countries Nestle India‟s top line. *Maggi hasconsumer segment was the *Instead, in all these years, & sells over a billion been the pioneer in this segmentkids. Maggi has grown products each day. of market .*The target group later on exponentially to become a *There was a need for a productincreased and included youth. generic brand The main consideration that would provide quality food of Nestle is Good Food, and also was easy to cook. Nestle*This group usually comes *The competitors of Maggiunder middle class and Good life to all recognized this and introduced are Top Ramen, Wai-Wai consumers. Their priority Maggi, a product which wouldupwards residing in urban, Noodles, Sunfeast pasta take less time and to cook andsemi-urban and also rural is nutrition, health and consumer uses it to get fast relief noodles.areas. wellness. from hunger.
• Very recent Maggi had concentrated only on the urban India Rural • They never tried to exploit the rural India which covers a major part of Indian population. India: • Their main drawback is that they rely heavily on one flavour only. • Having 85 % of the market share they can still easily take the risk and try on various flavours but keeping theVariety in current flavours in market. taste • Their star product has no nutritional values and since children are the major target of their product they should come up with products that have nutrients. Health: • They have come up with Maggi Vegetable Atta noodles but more products should be launched. • India‟s huge plus point is its population. • Major part of the population is youth.Population • Maggi can use the unemployed youth of India to increase their production which they can sell in rural India. •Various colleges have stalls where they sell Maggi. • So schools should be their major target where they can sell their product as Maggi being already popular among the kids of India. Schools •This will solve the age old problem of the parents of preparing tiffin for the school going kids.
•Region: Urban, semi-urban, rural (recent) •Occupation: WorkingDemographics: professionals, self-employed, students •Social class: Middle class and upwards •Occasions: Regular and everyday user – Urban. •Depending on the temporal aspects of consumer‟sBehavioural: life(time of day, week, month and year) – Rural •Usage rate: Heavy user-urban, light-rural, medium-semi- urban
STARS QUESTION MARKMaggi Veg Atta Noodles Maggi Pasta Maggi Chicken Maggi Sauces DOG CASH COW Maggi Tomato, CurryMaggi Masala Flavour Flavours
Porters 5 Forces New entrants No potential threats of new entrants Suppliers Industrial Rivalry BuyersDistributors Customer and raw Top Ramen, Mindset material Sun Feast Brand image suppliers Pasta Treat Substitutes Chowmein, fast food, pasta, home cooked snacks
Conducting promotional campaigns in schools is one of their main marketing activities. • Advertising strategies: The focus of the advertisements is on the children as they are their major consumersAvailability in different pack sizes: Packing is the biggest plus point of Maggi marketpenetration. They have the product available in all sizes to tap the categories of consumers • There is a good innovation present in the products. Maggi 2 minutes noodles, Cup-o- Maggi, Atta noodles etc. are the different forms of the same product available in market.
Product Packaging Maggi has come up with various products Maggi is packed in the yellow packets. The tip according to the needs of consumers. Some of of the packet is zipped so that the contents them became very popular and some of them can easily be spilled without wasting it. It has were total failure solved the problem of storage Marketing MixPromotion Place:Distributing free samples. Nestle Maggi Noodles is famous not only inGiving gifts on return of empty packets.Dry sampling-distributing Maggi packets urban areas but also in rural areas. It is rightlyWet sampling - distributing cooked Maggi. available at number of retail shops and mallsAvailability in different packages 50gm,100gm,200gm,etc..and so that consumers can easily purchase theEffective Tagline Communication. product without much efforts.
For review the revenue and sales, and consumer feedback is taken into consideration. Revenue and Sales: Maggi is NIL‟s largest brand (Nescafe was the largest until mid-1990‟s) with sales (gross) of 2154.5 crore (FY11). It includes the sales of instant noodles and pasta cooking aids, soups and sauces. Enjoying virtual monopoly in the segment until FY10, NIL revenues from the segment have grown at a CAGR of 26.3% (CY04-11) backed by volume growth of 20.5% and price growth of 4.8%. Expected growth (CAGR CY11-13E) of Maggi is 20.5% (volume growth of 17%). Consumer Feedback:
Contingency theory is a behavioural theory that claims that there is no single best way to design organizational structures and contingency plan is a plan designed to take a possible future event or circumstance into account. The point is to design an organizational structure that can handle uncertainties in the environment effectively and efficiently. Some important contingencies for companies are listed below: 1. Technology 2. Suppliers and distributors 3. Consumer interest groups 4. Customers and competitors 5. Government 6. Unions Maggi diversifies its products and its noodles not only to one geographical constraint but to many different areas according to the demand of the consumers.
For example: Top Ramen brand of instant noodles entered the market with the slogan “Don‟t be a noodle, be a smoodle”, but by then maggi noodles had appropriated the convenience aspect of instant noodles through a combination of clever sub branding of „2 minute noodles‟, and well- pitched advertising with the new slogan of “bhook lagi … bas do minute”, to beat its competitor Top ramen. Maggi conducts test marketing before launching new product distinctive from its competitors and strengthens its distribution channels in the rural areas. Maggi designed its product according to the people of Gujarat which is devoid of garlic and onions and named it as „Jain Maggi‟. We can see that Maggi makes or design its brands according to the taste and preferences of the consumers which helps them to tackle the uncertainties in an efficient way.
The processing in India is at Nascent stage. Traditionally, Indians believed that its better to consume fresh food than frozen food but trend is changing as new fast food generation is emerging slowly. Nestle‟s Maggi is a great example for fast food. Riding on the success of the brand, Maggi has come up with number of products like sauces, ketchups, soups, tastemakers etc in mid 1990s. After few years Nestle‟s Maggi had lost almost its position in the minds of Indian consumers mainly due to its taste in end 1990s. But Maggi came up strongly as it changed its formulation of its tastemakers & packaging which increased its sales as years passed by.