OBJECTIVES• Maggi is one of the most famous and familiar product that can be targeted to all age groups.• Cheaply available in all areas(including remote areas at feasible price)• Easy to cook (consumes less time) It was considered as Junk food in the beginning but later was reintroduced and was successful as a healthy home made fast to cook good to eat snack.• Maggi is one of the highest selling products all over country.• Creative interaction blogs for customers:• Focus mainly on Health Benefits
INTRODUCTION• Maggi Noodles is a brand of instant noodles made by Nestle India limited.• It was found by the Maggi family in Switzerland in 19th Century.• Maggi Company merged with Nestlé in 1947.• The first launch of the Maggi brand of instant foods in 1882 – 83.
Maggi in India• Maggi has faced lot of hurdles in its journey in India• Maggi noodles were launched in India in the early 1980s• Positioning of the product with the wrong target group• Maggi was positioned as „2-minute noodles‟ with a punch line that said „Fast to cook! Good to eat!‟
Need recognition of Indian consumers• There was a key need for a product that provides good quality food and at the same time was convenient.• Maggi visualized that there should be a product which takes less time to cook and consumer uses that product to get fast relief from hunger.• So the „2-minute funda‟ coupled with yummy taste worked.
PRODUCT LIFE CYCLEThe product life cycle is an important concept in marketing. Itdescribes the stages a product goes through from when it was firstthought of until it finally is removed from the market.
1. Market introduction stage Researching, developing and then launching the product2. Growth stage When sales are increasing at their fastest rate3. Maturity stage Sales are near their highest, but the rate of growth is slowing down, e.g. new competitors in market or saturation4. Decline stage Final stage of the cycle, when sales begin to fall
PLC OF MAGGI • a : Introduction • a-b : Growth • b-c : Reduction In Sales • c : Re-Launch • c-d : Market Re-Capture • d : Introduction to new Variants
Introduction stage of Maggi Noodles:• Introduced the Maggi brand in India in 1982• First-mover in the instant noodles categoryGrowth stage of Maggi Noodles:• It enjoyed around 50% market share valued at 250cr in this segmentMaturity stage of Maggi Noodles:• During 1990‟s the market became saturated.• Maggi faced tough competition from Top Romen and Hakka Noodles.
Decline stage of Maggi Noodles:• After 1990‟s sales of Maggi started declining.• NIL changed the formulation of Maggi noodles in 1997. However, this proved to be a mistake.• New product launched failed in the market, eg. Dal Atta Noodles of Sambur flavor.Reintroduction stage of Maggi Noodles:• In 1999 company again changed the formation of its products.• Company came up with various interesting advertisements.
MAGGI STPD ANALYSIS• Segmentation: Based on life style and habits of urban families.• Targeting: Kids, office goers.• Positioning: With statements as “2 minute noodles” and “easy to cook good to eat” .• Differentiation: Taste, flavours, packaging
SEGMENTATIONThe segmentation of Maggi was done on thebasis of• Age• Lifestyle• Eating Habits of Urban families
POSITIONING• Nestle positioned their product Maggi with the well known slogans such as• “2 minute noodles”• “taste bhi health bhi”• “Easy to cook, good to eat”• “fast relief from hunger”• They also positioned it as hygienic home made snack.
TARGETINGTarget audience are:• Kids• Youth• Working women• Office goers
DIFFERENTIATION• Maggi was and is still differentiated on the basis of• Taste• Flavours• Packaging
SWOT ANALYSIS MAGGI TOP RAMEN STRENGTH• Market leader in their segment. • Prepared quickly and conveniently• Strong brand loyal consumer base. • Top Ramen is a major brand of the• Wide range of distribution channel. company in India with substantial market share • A unique noodles taglined with smoodles
MAGGI TOP RAMEN WEAKNESS• Not much presence in rural • Limited brand awareness market. and advertising.• Strong presence of regional • Still trying to penetrate in competitors. the global market.• Competitive pricing.
MAGGI TOP RAMEN OPPORTUNITY • Cost reduction by• Increasing number of restructuring production working youth. system.• Shift to rural market. • Growing market for fast• Changing preference of to prepare food. consumers.
MAGGI TOP RAMEN THREATS• Price war with • Less price of competitors. competitor‟s product.• Strong presence of • Brand switching cost is competitors. very low. • Local brands and restaurants
PlaceWhenever, Wherever, However…• Connecting with customers out of home…..in the movies.• MAGGI Fun spots• Supply in other nestle outlets.• ITES/BPO employees
Promotion• They promoted the product by,• Distributing free samples.• Giving gifts on return of empty packets.• Dry sampling-distributing Maggi packets.• Wet sampling - distributing cooked Maggi.• Availability in different packages 50gm,100gm, 200gm,etc..• Effective Tagline Communication.
BCG Matix• (BCG) Matrix is a four celled matrix (a 2 * 2 matrix) developed by BCG, USA.• Portfolio analysis tool• According to this matrix, business could be classified as high or low according to their industry growth rate and relative market share.
• STARS- Stars represent business units having large market share in a fast growing industry Maggi Noodles is the market leader with 80 % market share in Noodles.• QUESTIONS: Question marks represent business units having low relative market share and located in a high growth industry. Maggi Soups is the category which is in Question mark as the market is growing and the brand has less market share.
RECOMMENDATIONS• New products but sticking to the original TASTEMAKER.• Pricing Strategy.• Most of the medical practioners advice especially old people and small children not to eat maggi everyday because of it contains high quotient of Maida Flour and Salt so we recommend maggi to reduce these contents which makes it more healthy.• Conduct Market Research to find out the market penetration of the product in the rural areas covered.• They should conduct test marketing before launching new product. Focus on creating distinctive image, based on twin benefits of INSTANT and HEALTHY.
SUGGESTIONS• New products such as Maggi pakodas which can be taglined or advertised as “JUST FRY AND EAT IT” OR “Maggi Pakoda a Wholesome Snack"• A lot of people like to eat maggi with grated cheese on it so it can come up with its own brand of Maggi Cheese and advertise it with slogans such as “Maggi Cheese makes it yummier OR “Maggi Cheese as soft and light as breeze”• Maggi can also come up with its own Maggi hakka noodles which can attract the target audience as well as the small eating Chinese joints which will increase its profit margins.• It can come up with maggi branded sauces (Vinegar, Soya sauce).
CONCLUSION• Nestlé India Ltd is the dominant player in noodles with 60% share of retail value sales in 2010.• Its brand Maggi was the most entrenched instant noodle brand in India.• Result of its wide distribution network, aggressive advertising, a large variety of flavors under Maggi and strong brand loyalty.
• Maggi continuously focuses its efforts to understand changing lifestyle of modern India & anticipate consumer needs.• Maggi has focused on changing lifestyle and innovated, renovated to create delight in everyday meals & bring happiness to everyday family moments. This is Maggi‟s DNA.• The new launches will only continue to grow the market further.