Nestle Lanka PLC manufactures and distributes food and beverage products in Sri Lanka. Their Maggi instant noodle brand holds 45-50% of the noodle market share. Between 2008-2013, Maggi noodle revenue grew by 15% annually on average. The company faces competition from Prima and Alli noodle brands. To increase market share, Nestle will reposition Maggi as a family brand and launch new product lines fortified with vitamins and minerals while utilizing competitive pricing and widespread distribution. The marketing objectives are to increase Maggi's market share to 50-60% and brand awareness by 10% through new product launches, upgrading existing lines, and promotional activities over the next year.

1. By- M.S.Waseem Mohamed
0000017138
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2.  Nestle Lanka PLC is a Sri Lanka – based company involved in manufacturing, selling,
marketing and distributing food and beverage products in Sri Lankan FMCG
market,90% of the nestle products manufactured in locally.
Maggi instant noodle
 Maggi classic range - Maggi chicken, Maggi curry, Maggi Tikiri, Maggi chicken double
pack
 Maggi devilled - Devilled chilly chicken, Devilled kottu, Devilled X-Tra spicy blast, Devilled
X-Tra green chilli
Growth stage -Devilled X-Tra spicy blast, Devilled X-
Tra green chilli, devilled chilly chicken and Devilled
kottu
Maturity – Maggi Tikiri, Maggi 2 minute noodle and
more spicy flavours in 2 minute noodles
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3.
Revenue and revenue growth (last 5 years)
Produ
ct
Turnover (Rs)
2008 2009 2010 2011 2012 2013
Noodles
1,618,129,662
1,739,924,368
1,912,004,800
2,148,320,000
2,295,580,000
2,620,662,500
Product
Turnover (Bn)
2008 2009 2010 2011 2012 2013
Maggi instant
Noodle
1,618,129,662
1,739,924,368
1,912,004,800
2,148,320,000
2,295,580,000
2,620,662,500
Actual revenue
growth
18%
8%
10%
12% 13%
15%
Expected sales
growth
1,909,393,001
1,879,118,317
2,103,205,280
2,406,118,400
2, 594,005, 400
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4.
Product category
Market share
nestle brand competitor brand
Noodles
Maggi instant noodle –
45- 50 %
Prima – 35- 40 %
Alli – 4 %
Others – 6 %
Cube based products Maggi cubes – 20% Knorr- 80 %
Coconut based products Maggi coconut milk – 80
%
Renuka – 20 %
Source- Nestle Brand Management
Current distribution system - modern trade, distributors , institutional sales
Pricing methods - competitive pricing strategy
Promotional activities in last two years -
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5. External Environment Factors
Political
•Government imposes though rules and regulation and charge in food and beverage industry
•Government increasing duty on wheat grain imports to re-engineer the food habits of citizens
Economical
•The local economy with a growth rate 7.3%.
•Inflation continued its decrease with another year of single digit inflation to end 2015at 0.1%,
Social
•Raising consumer awareness as to the negative impact of eating habits
•29% of SRI Lankan children are deficient in vitamin A
•Increasing ageing population, Women are employed more than ever
Technological
•Lack of adaptation of new technology
•Need of state of the art equipment and production facilities
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6. Ecological
•Recognition is given to industries that practise ‘’Best Environmental Management
System’’
•Use of environmentally friendly and easily disposable packaging
•Popularization of the green marketing concept
Ethical
•Product issue –if there any changes the company must inform to customers.
•Price issue- the price must be low to the brand value.
•Details- put their product ingredient, which is one of the ethics
Legal
•Health and safety regulation that need to be followed by food and beverage companies
•Legal barrier in exporting to various countries
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7. • Total FMCG Turnover RS, 206,881 million
• Industry contribute to approximately 17% of the total corporate.
• The sector earning is growing at a moderate 12% years over a 30% growth at a value of approximately 21 million US dollars.
Industry growth
Sri Lanka’s GDP grew by 7.4% during in 2014 up slightly from 7.2% a year earlier. Continued high growth was driven by faster
expansion in industry
180,000 general trade retailers in order to determine the total volumes purchased by Sri Lankan consumers.
Over 8,000 tons of instant noodles are consumed annually in Sri Lanka.
To this volume, the category has seen a growth of over 60% in the last few years
Market Trends
• Increase in demand from domestic consumers for convenience products
• Changing lifestyles and rising health consciousness.
• Gross domestic product grew by 7.4% during 2014, up slightly from 7.2% a year earlier.
• The increasing dependence on the rural sector
• Introducing more affordable (smaller) packs which have made it affordable
• The urban sector starts reviving and urban consumers revert to their high spending ways
Market Analysis - Total sales, revenue & growth (industry)
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8. OPPORTUNITIES & THREATS
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9. Primary competitors Secondary competitors Possible new competitors
Instant noodles
Prima-Instant Noodle
Uswattaha
Alli – Instant Noodle
Harischandra
Noodles - Alli ,
Harischandra, Harvest,
Turkey, Nikada
Other noodles type
vemivelli, consous
Pasta, Spaghetti, Marcaroni
– Kraft, San Remo, Roza
Foreign products
Serendib flour mills Sri Lanka
Ceylon Biscuits LTD
John keels holdings
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12. COMPETITORS Ceylon Agro industries-
prima instant noodle
Alli- instant noodle
Branding strategies Brand name – line extension
Slogan – any time, any where
Brand personality- fun ,
energetic, nutritious and spicy,
Alli company is local branded, it
has a very low percentage of
market share , so no activities as
such
Mind & hart share for the
competitor’s products
Spicy flavour
Sri Lankan origin
Ready to eat
Fun and energetic brand
Environmental friendly
packaging
First locally owned manufacturer
of Fully automated and 100%
hygienic instant fried noodle
production factory in Sri Lanka
Technological leadership The Prima noodle plant has
been accredited with ISO
9002 quality certification
system and SLS for the
modern process.
highest slandered of quality, going
through a completely hands free
process
High production standards and
State of the art technology
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13. SWOT analysis
Weaknesses
•Maggi noodle is the star product while other
categories are slow moving
•Products have suspected indigents
•Over reliance on noodle product category
• Government influence on the consumption of
specific products which belong to culinary
category
• Competitors initiating aggressive
communication strategy that would result in
increased brand awareness
• Raising consumer awareness as to the
negative impact of eating habits
• Local/ foreign competitors
• Acceptance of the product in the youth market
• Changing preference of consumers towards
fast foods
• Rapid economic growth and rising disposable
incomes
• Increasing ageing population
• 29% of children's are deficient in vitamin A
and iron
• Marked leader in the noodle market
• Strong brand loyalty
• Hugh distribution channel network over
thousands of distributors, retailers
• Innovative flavour’s for Sri Lankan taste buds
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14. Marketing objective
The main objective of the campaign would be to rejuvenate the Magi
brand as a ‘Family Brand’ in the minds of the existing target group, these
objectives are expected mainly to change the brand perception of Maggi.
They are target particularly towards the existing customers and try to
increase the sales from them as well as increase their product usage.
To increase the market share of the noodle range from its current
45- 50% to 50-60% within the next financial year of 2015/2016 in
all islands
To increase overall brand awareness of Maggi by 10% within the
next 12-8 months
To increase customer repeat purchasing in the Maggi noodle range
by 25% to 30% within the next 12 months.
.
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15. Scope Target
Product portfolio Maggi noodle range of products only
Target Segment
Geographical- Island wide
Demographic- Age 5 and above covering children’s
Young adults
Middle age and older generation
Behavioural – Selective usage for entertainment
Regular users for different occasions
Psychographic - Fun loving personalities,
Busy life style personalities
Who needs instant solution
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16. Positioning
Popularly Positioned Products (PPPs) are high-quality
food products that provide nutritional value at an
affordable cost and in appropriate formats .
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17. High product qualityHigh product quality
Low product qualityLow product quality
High costHigh costAffordable costAffordable cost
Maggi
Harichandra
prima
Alli
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18. Growth strategy describe with analysis of Anso
matrix
Existing
Market Penetration
Upgrade existing variants
Maggi noodle
•Maggi Tikiri
•Maggi chicken double pack
•Devilled chilly chicken
•Devilled Kottu
Product Development
Introduce and innovate new
variants of Maggi noodle
•Devilled X-Tra spicy blast
•Devilled X-Tra green chilli
•Maggi chicken
•Maggi curry
Market Development
Finding new market for existing
variants of Maggi noodle
Diversification
Launching new variety of
washbasin into the new local
markets as well as global too.
Existing New
New
Market
Product
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19. Product strategy
Re launched with Vitamin A
Fortified with Calcium and the goodness of
Vitamin A,
Enriched with vegetables and an enhanced
chicken taste that is bound to be a hit with the
kids!
The Maggi Devilled range that caters to young
Sri Lankan adults with a love of hot and spicy
food.
The Maggi Noodles Devilled range comes with
additional sachets of savoury sauce and spicy oil
for that added fiery zest, taste and aroma.
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20. The prevailing pricing objective of Maggi
product range is to increase the market share
and become the market leader in all noodles
product categories.
The pricing strategy of noodle range is utilizing
competitive pricing strategy and basing its product
prices in line with the competitors because of the huge
competition faced by the product category.
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21.  Promotional strategy
Sales promotion PR activities Free Gift
Radio, TV promotions Facebook, Twitter & website
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22. Distribution strategy
180 distributors spared island wide.
Modern Trade , Distributors, Institutional Sales
Physical evidence strategy
Pleasant appearance inside the Maggi noodle display, state of the art technology used,
Web page of Maggi noodle – user friendliness
Process strategy
Efficiency of process
Quality slandered
Flexibility
All information are provided via websites (www.nestle.lk)
People strategy
Staffing levels
Wage/Benefit tradeoffs
Reward strategy
Training and Development
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23. Action plan to achieve marketing mix Strategies for year 2015/2016
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24.  The instant noodle categories are expected LKR 301 million sales
according to the last three years sales achievement, combined with
critical knowledge of general economic and industry trends.
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2012-
2013
LKR
(million)
2013-2014
LKR
(million)
2014-
2015
LKR
(million)
2015-
2016 LKR
(million)
Distributor
network
157 182 194 191
Modern
trade
72 80 95 110
Total sales 229 262 289 301

25. Marketing budget of Maggi instant noodle for year2015/2016LKR (Million) LKR
(Million)
LKR (Million)
Next year sales/ revenue 301
Product
Change Maggi features
Introducing an Eco-friendly product package
New product development
05
05
15
Promotion
TV/ radio advertisement
Bill borders in new location
Point of sales materials
Sponsorship
Public relation
Trade offers
Retailer offer
Sampling through propaganda vehicle Seasonal promotion
Brand ambassador
15
05
05
07
10
8
3
2
5
85
Profit before Tax 216
Tax
(6.)
Net Profit 210
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26. Monitoring and evaluation
Monitoring
Conducting monthly sales review
meetings
Building awareness among sales peoples
If any drop in sales, corrective measures
should be taken
Training the staff
Motivating the Maggi customer service
officers
Conducting customer researches
Conducting a market share analysis
Evaluation
•Surveys
•Smples
•Communications audits
•PR audits
•CRM
•Database searches
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