1. Operation strategies of Maggi
Presented by,
Rabin Bhandari

2. About Nestle
• Largest food & beverage company in the world
measured by revenue
• Headquarter in Switzerland
• 468 factories in 86 countries
• 3,39,000 employees (2012)
• Founded in 1866

3. Nestle India Ltd.
 Nestlé’s first sales agents in India began work in Chennai
and Kolkata in 1912.
 Nestlé celebrated 100 years in India (2012)
 Nestle procures 13 lakh litres of milk from one lakh farmers
in Punjab, Haryana, Maharashtra and Rajasthan.
 Nestle India had set up its first production facility at Moga
in Punjab in 1961, and now has seven manufacturing plants
in Tamil Nadu, Karnataka, Haryana, Goa, Uttarakhand, and
Himachal Pradesh ( 2011 data )
 Today, the company directly employs 6,000 people in India
and more than half a million indirectly.
 Its products are sold in more than 3.5 million outlets across
the country.

4. Nestléis...
...theworld'sleadingnutrition,healthandwellnesscompany.
Our mission of "Good Food, Good Life" is to provide
consumers with the best tasting, most nutritious
choices in a wide range of food and beverage
categories and eating occasions, from morning to
night.
 Continuous research
 Taste and lifecycle preference
 Safe and high quality
Mission

6. Nestle products

7. Maggi
• 30 years ago (1982) in India by Nestle India
Ltd. (NIL)
• Launched traditional 2 minutes noodles in
masala, tomato and chicken flavor with tagline
fast to cook good to eat
Strength:
 Established brand
 Global brand
 Specialization
 Advanced R&D

8. Maggi: PLC
Introductory stage:
 High failure
 No competition
 Limited distribution
 Promotion focused on awareness and distribution
Growth Stage:
 Increasing rate of sales
 Entrance of competitors like Top Ramen, Hakka noodles, yippee, wai-wai etc.
 Promotion emphasizes brand ads
 Development cost recovered
 Offered in more size, flavor and options
Maturity stage:
 Declining sales growth
 Tough competition
 Heavy promotions to dealers and consumers
 Price and profit fall

9. Maggi: Facts
 1400 – crore instant noodles market in India
with annual growth rate of 15% to 20%.
 Maggie’s share has slipped to 80% from more
than 90%.
 27% contribution to Nestle India Ltd.
revenue.

10. Maggi business strategies
 Distributing free samples
 Giving gifts to return of empty packets
 Dry sampling: distributing maggi packets
 Wet sampling: distributing cooked maggi
 Availability in different packages:
50gm, 100gm, 200gm etc.
 Availability in 2in 1, 4 in 1 packages
 Effective tagline communication

11. Various tag line
 Mummy, bhookh lagi hai (Mom, I am hungry)
 Bas 2 minute ( Only 2 minutes )
 Fast to cook, good to eat
 Taste bhi health bhi

12. Competitors
Price
Advertising
Promotion
Distribution

13. Positioning the production system
 Product type: Standard
 Production System: Product focused
 Inventory policy: Produced to stock
Production process:
 Batch and mass production
 The mass occur when producing noodle
while the batch occur in design the
package, flavours

14. Plant layout
Nestlé India set up its first manufacturing facility at Moga (Punjab) in
1961 followed by its manufacturing facilities at
Choladi (Tamil Nadu), in 1967;
Nanjangud (Karnataka), in 1989;
Samalkha (Haryana), in 1993;
Ponda and Bicholim (Goa), in 1995 and 1997, respectively;
and Pantnagar (Uttarakhand), in 2006.
* First research and development centre in India
at Manesar in Gurgaun( 290 crore investment)
In 2012, Nestle India set up its 8th manufacturing facility at Tahliwal
(Himachal Pradesh).

15. R&D centres
 Nestle institute of health sciences, Switzerland
http://www.nestleinstitutehealthsciences.com
 Nestle research centre
http://www.research.nestle.com/
 1.7% of sales in R&D activities
 Recall of maggi from the market in Philippines
, Salmonella