SUCCESS STORIES….It’s all about the Strategic Management Presented By: MANIK KUDYAR MBA-HRM 1200712
What is Strategy???The word “strategy” is derived from the Greek word “stratçgos”; stratus (meaning army) and “ago” (meaning leading/moving).Strategy is an action that managers take to attain one or more of the organization‟s goals.Strategy is a well defined roadmap of an organization.
It defines the overall mission, vision and direction of an organization. The objective of a strategy is to maximize an organization‟s strengths and to minimize the strengths of the competitors.Strategy, in short, bridges the gap between “where we are” and “where we want to be”.
Strategic ManagementStrategic Management is all about identification and description of the strategies that managers can carry so as to achieve better performance and a competitive advantage for their organization.An organization is said to have competitive advantage if its profitability is higher than the average profitability for all companies in its industry.
The Origin In Switzerland in 1863, Julius Michael Johannes Maggi developed a formula to bring added taste to meals. This marked the beginning of the Maggi brand and its lines of convenient food products. Maggi merged with Nestlé in 1947. Maggi has been offering high quality and innovative products ever since.
Indian Success Maggi owned by Nestle is a brand that created a category for itself in the Foods market in India. The brand which is famous for the Noodles has evolved into the umbrella brand for Nestle in the Food segment. Nestle launched its noodles in the Indian market in the early 1980s. Nestle wanted to explore the potential for such an Instant food among the Indian market.
Maggi has faced 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. But it found that the sales are not picking up despite heavy promotion.
The Repositioning Strategy Research showed that Kids were the largest consumers of the brand. Realising this, Nestle repositioned the brand towards the kids using sales promotions and smart advertising. Now Indians are the largest eaters of Maggi Noodles in the world. Maggi Noodles is a MARKETING SUCCESS STORY.
The NISSIN Effect It was during the late 1990‟s that Indo Nissin - a Japanese company launched its Noodles brand "Top Ramen" with lot of promotion and with SRK endorsing the brand. TopRamen gave Maggi a run for its money.Change in Taste (Maggi)- A Big Failure- The consumers rejected the new taste of Maggi.Maggi – It’s Back- And in 1999 Maggi relaunched Noodles with the original taste.- Nestle was ready to accept the consumers verdict and it paid off handsomely.- Top Ramen could not sustain the growth it had for long.
STP of MAGGISegmentation on the basis of:- Life Style- Eating HabitsTargeted the:- Kids- Working WomenPositioned themselves as:- A Healthy Fast Food- Slogan “2 minute noodles”
EXPANDING THE SPECTURUM, SLOGANS & TAG LINES Bas 2 Minute : Promising mothers of FAST TO COOK and GOOD TO EAT snacks MAGGI KETCHUP -- “Its Different” SOUPS -- “Taste bhi, Health Bhi” Products like NOODLES (Masala, Tomato, Chicken), Cuppamania Low Salt and No Trans Fat products Vegetable Atta Noodles and Dal Atta Noodles
BRAND EXTENSION Health conscious Families, for attracting the families Competitors: KISSAN, HEINZ, TOPS etc… New Entrants To overcome the problem of decline in sales
Another Friend… Inviting people to send new recipes made with the help of Maggi There Maggi Stories Organizing Contest, Games and Industrial Visits for School Kids Using Attractive Advertising Campaigns
The HISTORY of the BRAND Nike was established by a couple of students from the University of Oregon. Phil Knight - was engaged in running (an athlete), and his companion - Bill Bowerman was his athletic trainer. In the early 60s American sports shoes cost about $ 5, and the quality was appropriate. Athletes got blisters, but one could not afford to buy expensive, high-quality German shoes.
In 1964, Knight and Bowerman developed their business plan to sell inexpensive shoes by designing them in America, manufacturing in Japan (due to cheap labor), and selling it in the United States at lower prices than the German footwear. The first batch was sold from the truck near the tracks. So were earned first 8 thousand dollars. The partners decided to continue to cooperate with the Japanese and the project was named BLUE RIBBON SPORTS. 1965 was a year of changes for the company name to the Greek goddess of victory Nike, which the manager of the company saw in a dream. By this time, Knight had already managed to sell shoes worth $ 1 million.
Timely Innovations1975 - Corrugated Sole1978 - Light Weight Shoes- In the year 1980, Nike was second only to REEBOK- To become #1, Focus shifted to the ADVERTISING side
Air Jordan Brand Phenomenon In 1984, Nike decided on a daring advertising campaign with basketball legend Michael Jordan. The company signed a contract in which Jordan had to play in these shoes. The legendary Air Jordans were sold out like hot cakes. The companys revenues grew from 870 million to $ 4 billion within a year. Jordan became part of the culture of Nike.
The Positioning Strategy Demographics (18-40), M/F, social class) Lifestyle (active teens, athletic/sporty individuals, casual lifestyle with fashionable taste) Behavior (sneakers as fashion statement, fitness craze, multipurpose shoes)
I‟m fulfilled when I feelimportant and recognized I want the status symbol of being the best I want to belong to the coolest group
Marketing Mix Strategy PRODUCT, PRICE, PLACE & PROMOTION Nike‟s is known for their footwear. It has designed a whole line up of footwear for almost every sport. Different types of shoes: running, basketball, soccer, cross training, football, tennis, golf Shoes for Kids, Men and Women The Clothing Line
Developing New Technologies DRI-FIT- Latest Edition: NIKE SPHERE TECHNOLOGY: WARMTH WITHOUT THE WEIGHT „Meet Sphere, our exclusive technology innovation that keeps you warm without the excess weight‟.
“If you have a body, you are an athlete.And as long as there are athletes, there will be Nike”.