This marketing plan analyzes Maggi Noodles' current marketing mix in India. It studies the popularity of two new healthy variants - Vegetable Atta and Dal Atta Noodles. The plan makes suggestions for introducing a new "Cup O Maggi" brand in the cup noodles segment. Various tools like surveys and secondary research were used. Nestle India leads the instant noodles market in India with Maggi having a 79.3% market share. The plan evaluates introducing improvements to the Dal Atta variant and a new Cup O Maggi product along with packaging changes to further market share.
The document discusses strategies undertaken by Nestle India Ltd. (NIL) to establish and sustain the Maggi brand in India. It describes how NIL initially targeted working women but later shifted focus to children and mothers through marketing Maggi as a convenient and fun product. NIL repositioned Maggi as a healthy product by launching whole wheat and pulse variants. The document also examines brand extensions and NIL's efforts to maintain Maggi's popularity through various promotional campaigns.
A brand is not developed overnight, it struggles through various factors and rises by implementing various strategies. Hers is success story of one such brand Maggi and the strategies it devices.
Maggi is a popular instant noodle brand launched in India by Nestle in 1983. It was introduced when instant noodles were not well known, and Maggi educated consumers about the convenience of ready-to-eat noodles. While it faced competition over the years from other brands like Top Ramen, Maggi remained the market leader through product innovations like vegetable atta noodles and new flavors. Nestle aims to continuously understand changing lifestyles in India to provide tasty, nutritious, and convenient food options under the Maggi brand like cuppa mania noodles. The future focus is on growing the market through new launches.
1) Maggi noodles were invented in Switzerland in 1884 and acquired by Nestle in 1947, arriving in India in 1983.
2) In 2014, Maggi noodles were found to contain excessive lead and MSG, beyond permissible limits, leading to a nationwide ban in India in 2015.
3) The ban had huge financial and reputational effects for Nestle, but through social media engagement, new product launches, and focus on health, Nestle was able to regain lost market share over the next five months.
Nestle is the world's largest food and beverage company operating in 189 countries. It produces a wide range of products including Maggi noodles, its most popular brand in India. Maggi noodles were introduced in India in 1982 and quickly gained popularity for being ready to cook in just 2 minutes. Nestle uses advanced machinery to efficiently manufacture Maggi through an eight step process involving mixing, cutting, steaming, drying and packaging. Nestle has a functional plant layout with different production units working independently. It prioritizes quality control and uses various tools to effectively manage its global supply chain.
Maggi noodles enjoys a dominant market share of 60% in the Indian instant noodles market as the pioneer brand. However, competition is increasing as other brands like Top Ramen and Sunfeast Pasta have entered the market. Maggi faces threats from substitutes and needs product innovation to maintain its position. It currently focuses on positioning as a convenient snack but may need to differentiate further on taste or health to compete effectively.
The document discusses strategies undertaken by Nestle India Ltd. (NIL) to establish and sustain the Maggi brand in India. It describes how NIL initially targeted working women but later shifted focus to children and mothers through marketing Maggi as a convenient and fun product. NIL repositioned Maggi as a healthy product by launching whole wheat and pulse variants. The document also examines brand extensions and NIL's efforts to maintain Maggi's popularity through various promotional campaigns.
A brand is not developed overnight, it struggles through various factors and rises by implementing various strategies. Hers is success story of one such brand Maggi and the strategies it devices.
Maggi is a popular instant noodle brand launched in India by Nestle in 1983. It was introduced when instant noodles were not well known, and Maggi educated consumers about the convenience of ready-to-eat noodles. While it faced competition over the years from other brands like Top Ramen, Maggi remained the market leader through product innovations like vegetable atta noodles and new flavors. Nestle aims to continuously understand changing lifestyles in India to provide tasty, nutritious, and convenient food options under the Maggi brand like cuppa mania noodles. The future focus is on growing the market through new launches.
1) Maggi noodles were invented in Switzerland in 1884 and acquired by Nestle in 1947, arriving in India in 1983.
2) In 2014, Maggi noodles were found to contain excessive lead and MSG, beyond permissible limits, leading to a nationwide ban in India in 2015.
3) The ban had huge financial and reputational effects for Nestle, but through social media engagement, new product launches, and focus on health, Nestle was able to regain lost market share over the next five months.
Nestle is the world's largest food and beverage company operating in 189 countries. It produces a wide range of products including Maggi noodles, its most popular brand in India. Maggi noodles were introduced in India in 1982 and quickly gained popularity for being ready to cook in just 2 minutes. Nestle uses advanced machinery to efficiently manufacture Maggi through an eight step process involving mixing, cutting, steaming, drying and packaging. Nestle has a functional plant layout with different production units working independently. It prioritizes quality control and uses various tools to effectively manage its global supply chain.
Maggi noodles enjoys a dominant market share of 60% in the Indian instant noodles market as the pioneer brand. However, competition is increasing as other brands like Top Ramen and Sunfeast Pasta have entered the market. Maggi faces threats from substitutes and needs product innovation to maintain its position. It currently focuses on positioning as a convenient snack but may need to differentiate further on taste or health to compete effectively.
This document discusses the history and marketing strategies of Maggi noodles. It begins with the founding of Nestle in 1866 and Maggi in 1872. Maggi merged with Nestle in 1947 and was introduced to India in 1982. It faced competition from brands like Patanjali and Knorr. Maggi traditionally targeted kids, teens, women and youth. Its advertisements focused on family values. However, in 2015 it faced a ban in India due to excessive lead content. After the controversy, Nestle increased advertising spending. Currently, Maggi has regained over 60% market share through varied products and mass advertising campaigns. The document concludes that Maggi has established itself across India through effective marketing and advertising.
Nestle is a global food and beverage company headquartered in Switzerland. It has over 500 factories worldwide and produces a wide range of products across categories like beverages, milk, nutrition, water, and pet care. In India, Nestle has been operating for over 90 years and now has 7 factories and 4 offices across the country. It is a major player in the Indian FMCG sector with popular brands like Maggi, Nescafe, Cerelac, and KitKat. Through innovation, supply chain management, and leveraging its global R&D resources, Nestle has seen continued success in the large Indian market.
The document summarizes the history and development of Maggi noodles. It discusses how Maggi originated in Switzerland in 1885 and was introduced to India in 1982 when Nestle acquired the brand. It became very popular in India due to its quick cooking time of "Bas Do Minute." Over the years, Nestle expanded the Maggi brand to include other products and flavors while also making the noodles healthier. The document outlines Maggi's large market share in India and how Nestle has adapted the brand to local cultures and tastes around the world through strategic global expansion.
Nestle is a Swiss FMCG company founded in 1886 that started by meeting the need for milk during World War 1. Maggi, one of Nestle's brands, was created in 1872 in Switzerland and includes products like instant noodles, soups, sauces, and seasonings. Maggi noodles were launched in India in 1982 and created the instant noodles category. Over the years, Maggi has launched various products in India and become popular for its "Easy to cook, good to eat" tagline and ability to be cooked in just 2 minutes. However, some of Maggi's new product launches like Dal Atta noodles failed to gain traction in India.
- Maggi was founded in Switzerland in 1884 by Julius Maggi and is now sold in 130 countries. It was acquired by Nestle in 1947.
- In India, Maggi noodles were introduced in 1983 and became very popular, gaining an 80% market share, but sales were banned in 2015 when samples were found to contain lead and MSG beyond limits.
- To revive the brand, Nestle engaged customers on social media, launched a FAQ page to address concerns, and sold "welcome kits" through e-commerce to regain customer trust over 5 months of struggle, eventually managing to resume sales in India.
This document summarizes Nestlé's history and product portfolio. It notes that Nestlé was founded in 1866 in Switzerland and introduced the popular Maggi brand to India in 1982. It then lists many of Nestlé's product categories such as candy, frozen foods, baking products, ice cream, pet food, beverages, infant formula, and bottled water. The document provides a brief timeline of Nestlé and Maggi merging in 1947 and Nestlé bringing Maggi to India in 1982. It describes Nestlé's segmentation of the Indian market and targeting of kids, youth, and working women. It also discusses Nestlé positioning Maggi as a fast solution for hunger using taglines like "Mummy, bhookh lagi
The report entitled ‘MAGGI – A project report on marketing strategy’ deals with the study of Nestle as a brand which acquired Maggi in 1947 & launched it in India in 1983 as an evening snack which became synonymous with noodles. This study tries to analyses the marketing strategy of Maggi before & after the controversy & how post dropping significant Market Share during the ban, they were able to smoothly regain the Market share within a few months of re-launch.
Group 9 conducted market research on Maggi noodles. They surveyed 50 respondents between ages 20-50. Most spend Rs. 100-150 monthly on noodles and choose Maggi for its taste. Respondents wanted more flavors but rated taste, availability, and price highly. Masala was most popular but some wanted Atta noodles. Mouth publicity influenced many purchasers. The group concluded Maggi would stay dominant through new variants, though competitors emerge. Respondents signaled a preference shift to healthier Atta noodles.
Nestle is a multinational food and beverage company founded in 1866 with headquarters in Switzerland. It operates globally including in Pakistan where it has 5 production facilities. Nestle's vision is to be the leading health and wellness company. The document discusses Nestle's marketing strategies in Pakistan, focusing on its popular Maggi product. It covers segmentation targeting middle and upper classes. It also discusses the 4Ps of marketing - product details on Maggi, pricing objectives to match market rates, nationwide placement, and promotional activities like TV ads.
Maggi noodles was first launched in India in 1983 by Nestle. Initial strategies to promote Maggi as a convenient option for working women did not boost sales. After conducting research, Nestle changed the tagline to "Fast to Cook, Good to Eat" and promoted free samples, gifts with empty packets. Maggi was later targeted at kids through sponsoring TV shows. It is now targeting the entire family. Recent campaigns celebrate 25 years of Maggi in India.
The document discusses the history and market dominance of Maggi noodles in India. It details how Nestle launched Maggi noodles in India in 1982, targeting working women, but then shifted focus to children after research found they were the largest consumers. Maggi became a market leader in noodles through effective promotion and establishing itself as a convenient and fun product. It later expanded its product line with soups, sauces and variants while maintaining Maggi's popularity and brand image. The document outlines Maggi's product extensions over time and positioning as a healthy yet tasty food brand.
The presentation contains Marketing Strategies of Hindustan Lever Limited(HUL) which helped it in becoming India's number 1 in FMCG. It is made as an assignment report in first semester of MBA.
nestle maggi case study; maggi recall procedure; recent maggi casesPulkitTyagi16
Nestle is an international food and beverage company headquartered in Switzerland. Maggi is Nestle's brand of seasonings and noodles that originated in Switzerland in the late 19th century. In 2015, tests in India found Maggi noodles to contain excessive lead and MSG, violating food safety standards. This led to a nationwide ban on Maggi noodles by food regulators. The controversy severely hurt Nestle's sales and brand image in India. Nestle faced legal cases and spent over 500 crore rupees recalling and destroying products. It took steps like reformulating recipes and social media campaigns to regain consumer trust over time.
The document discusses the product life cycle of Maggi noodles in India. It describes how Nestle launched Maggi noodles in 1982, creating a new instant noodles category. Over time, Maggi grew to dominate the market, enjoying 50% share in the 1990s. To boost sales, Nestle changed the noodles' formulation in 1997, which consumers disliked, forcing Nestle to revert the recipe in 1999. The document also examines why Maggi's atta noodles variant failed and strategies Nestle can adopt to sustain Maggi's brand image.
This document discusses Maggi noodles, a brand owned by Nestle. It provides details on Maggi's history and introduction in India in 1982. Maggi quickly gained popularity and market share through promotions targeting children and working women. The document outlines Maggi's product portfolio expansion and covers its marketing strategies over time, including pricing, distribution, and promotions. It analyzes Maggi's performance through the stages of the product lifecycle model and discusses its current market leading position in India's instant noodles category.
Nestle introduced the Maggi brand in India in 1982 with the launch of Maggi 2 Minute Noodles, creating a new food category. Over the years, Maggi became a popular snack. To cater to health-conscious customers, Maggi introduced new varieties with less salt and no trans fat. Maggi also launched healthy instant noodle products made with whole wheat flour and vegetables to position itself as a 'Health' brand. The brand was extended to include sauces, soups, and other products.
Maggi seems to be just that perfect quick-snack between meals and is so easy to make that kids sometime make it alone. At the end of May 2015, India’s Food safety administration (FDA) ordered Nestle India to recall its popular Maggi noodles after tests showed that the product contained high levels of lead and MSG. Hence, the 2-minutes ready Maggi Noodles ban in India was declared.
Maggi India Twitter account makes an impressive effort to respond to every tweet from customers on this issue with a pre-prepared statement explaining that lead occurs naturally in soil and water.
Maggi India Twitter account makes an impressive effort to respond to every tweet from customers on this issue with a pre-prepared statement explaining that lead occurs naturally in soil and water.
On August 13, the ban was set aside by the court but it asked Maggi to undergo a retest at labs certified by National Accreditation Board for Testing and Calibration.
Nestle India faced a major crisis when its popular Maggi noodles brand was banned in India in 2015 over high lead content and the presence of MSG. Tests by some state regulators found lead levels and MSG above permissible limits, leading to the nationwide ban. Nestle challenged the ban in court, citing issues with the testing procedures. Further tests by accredited labs mandated by the court found Maggi noodles to be safe. Nestle then resumed production and sales of Maggi noodles in India. The crisis impacted Nestle's stock price and sales but the company maintained the products were safe for consumption.
This document summarizes research conducted on the brand communication of Maggi noodles in India. The research aimed to understand consumer perception and popularity of Maggi among demographics. It utilized quantitative and qualitative methods, including a questionnaire with 40 participants. Key findings include that Maggi has high top-of-mind awareness, trial rates, and repeat purchase rates due to effective branding through consistent logo, packaging, and emotional advertisements. However, Maggi faced a major controversy in 2015 when its products were banned for six months due to excessive lead levels, hurting its brand image. It since staged an impressive comeback by regaining consumer trust and market share leadership.
This document presents a demand analysis of Maggi noodles conducted by a group of students. It includes an introduction to Maggi noodles and its brand journey in India. A segmentation, targeting, positioning, and differentiation (STPD) analysis is presented. The results of a survey conducted in Navi Mumbai are summarized, asking questions about consumption habits and brand perception of Maggi noodles. The conclusion is that Maggi has achieved a strong position in the market and is least affected by competitors due to its focus on taste. The experience of conducting the survey provided insights into consumer behaviors and perceptions.
Nestlé is the world's largest health, nutrition and wellness company that sells a wide range of food and beverage products. It aims to provide consumers with the most nutritious choices and deliver improved shareholder value. Some of Nestlé's popular products in Bangladesh include Maggi noodles, Milo breakfast cereals, and Nido fortified milk. While Nestlé faces threats from competitors, it employs strategies like market penetration, relationship marketing and focusing on cost leadership to continue growing its market share in Bangladesh. The company also prioritizes responsible sourcing and community engagement to manage its social and cultural impacts.
This document discusses the history and marketing strategies of Maggi noodles. It begins with the founding of Nestle in 1866 and Maggi in 1872. Maggi merged with Nestle in 1947 and was introduced to India in 1982. It faced competition from brands like Patanjali and Knorr. Maggi traditionally targeted kids, teens, women and youth. Its advertisements focused on family values. However, in 2015 it faced a ban in India due to excessive lead content. After the controversy, Nestle increased advertising spending. Currently, Maggi has regained over 60% market share through varied products and mass advertising campaigns. The document concludes that Maggi has established itself across India through effective marketing and advertising.
Nestle is a global food and beverage company headquartered in Switzerland. It has over 500 factories worldwide and produces a wide range of products across categories like beverages, milk, nutrition, water, and pet care. In India, Nestle has been operating for over 90 years and now has 7 factories and 4 offices across the country. It is a major player in the Indian FMCG sector with popular brands like Maggi, Nescafe, Cerelac, and KitKat. Through innovation, supply chain management, and leveraging its global R&D resources, Nestle has seen continued success in the large Indian market.
The document summarizes the history and development of Maggi noodles. It discusses how Maggi originated in Switzerland in 1885 and was introduced to India in 1982 when Nestle acquired the brand. It became very popular in India due to its quick cooking time of "Bas Do Minute." Over the years, Nestle expanded the Maggi brand to include other products and flavors while also making the noodles healthier. The document outlines Maggi's large market share in India and how Nestle has adapted the brand to local cultures and tastes around the world through strategic global expansion.
Nestle is a Swiss FMCG company founded in 1886 that started by meeting the need for milk during World War 1. Maggi, one of Nestle's brands, was created in 1872 in Switzerland and includes products like instant noodles, soups, sauces, and seasonings. Maggi noodles were launched in India in 1982 and created the instant noodles category. Over the years, Maggi has launched various products in India and become popular for its "Easy to cook, good to eat" tagline and ability to be cooked in just 2 minutes. However, some of Maggi's new product launches like Dal Atta noodles failed to gain traction in India.
- Maggi was founded in Switzerland in 1884 by Julius Maggi and is now sold in 130 countries. It was acquired by Nestle in 1947.
- In India, Maggi noodles were introduced in 1983 and became very popular, gaining an 80% market share, but sales were banned in 2015 when samples were found to contain lead and MSG beyond limits.
- To revive the brand, Nestle engaged customers on social media, launched a FAQ page to address concerns, and sold "welcome kits" through e-commerce to regain customer trust over 5 months of struggle, eventually managing to resume sales in India.
This document summarizes Nestlé's history and product portfolio. It notes that Nestlé was founded in 1866 in Switzerland and introduced the popular Maggi brand to India in 1982. It then lists many of Nestlé's product categories such as candy, frozen foods, baking products, ice cream, pet food, beverages, infant formula, and bottled water. The document provides a brief timeline of Nestlé and Maggi merging in 1947 and Nestlé bringing Maggi to India in 1982. It describes Nestlé's segmentation of the Indian market and targeting of kids, youth, and working women. It also discusses Nestlé positioning Maggi as a fast solution for hunger using taglines like "Mummy, bhookh lagi
The report entitled ‘MAGGI – A project report on marketing strategy’ deals with the study of Nestle as a brand which acquired Maggi in 1947 & launched it in India in 1983 as an evening snack which became synonymous with noodles. This study tries to analyses the marketing strategy of Maggi before & after the controversy & how post dropping significant Market Share during the ban, they were able to smoothly regain the Market share within a few months of re-launch.
Group 9 conducted market research on Maggi noodles. They surveyed 50 respondents between ages 20-50. Most spend Rs. 100-150 monthly on noodles and choose Maggi for its taste. Respondents wanted more flavors but rated taste, availability, and price highly. Masala was most popular but some wanted Atta noodles. Mouth publicity influenced many purchasers. The group concluded Maggi would stay dominant through new variants, though competitors emerge. Respondents signaled a preference shift to healthier Atta noodles.
Nestle is a multinational food and beverage company founded in 1866 with headquarters in Switzerland. It operates globally including in Pakistan where it has 5 production facilities. Nestle's vision is to be the leading health and wellness company. The document discusses Nestle's marketing strategies in Pakistan, focusing on its popular Maggi product. It covers segmentation targeting middle and upper classes. It also discusses the 4Ps of marketing - product details on Maggi, pricing objectives to match market rates, nationwide placement, and promotional activities like TV ads.
Maggi noodles was first launched in India in 1983 by Nestle. Initial strategies to promote Maggi as a convenient option for working women did not boost sales. After conducting research, Nestle changed the tagline to "Fast to Cook, Good to Eat" and promoted free samples, gifts with empty packets. Maggi was later targeted at kids through sponsoring TV shows. It is now targeting the entire family. Recent campaigns celebrate 25 years of Maggi in India.
The document discusses the history and market dominance of Maggi noodles in India. It details how Nestle launched Maggi noodles in India in 1982, targeting working women, but then shifted focus to children after research found they were the largest consumers. Maggi became a market leader in noodles through effective promotion and establishing itself as a convenient and fun product. It later expanded its product line with soups, sauces and variants while maintaining Maggi's popularity and brand image. The document outlines Maggi's product extensions over time and positioning as a healthy yet tasty food brand.
The presentation contains Marketing Strategies of Hindustan Lever Limited(HUL) which helped it in becoming India's number 1 in FMCG. It is made as an assignment report in first semester of MBA.
nestle maggi case study; maggi recall procedure; recent maggi casesPulkitTyagi16
Nestle is an international food and beverage company headquartered in Switzerland. Maggi is Nestle's brand of seasonings and noodles that originated in Switzerland in the late 19th century. In 2015, tests in India found Maggi noodles to contain excessive lead and MSG, violating food safety standards. This led to a nationwide ban on Maggi noodles by food regulators. The controversy severely hurt Nestle's sales and brand image in India. Nestle faced legal cases and spent over 500 crore rupees recalling and destroying products. It took steps like reformulating recipes and social media campaigns to regain consumer trust over time.
The document discusses the product life cycle of Maggi noodles in India. It describes how Nestle launched Maggi noodles in 1982, creating a new instant noodles category. Over time, Maggi grew to dominate the market, enjoying 50% share in the 1990s. To boost sales, Nestle changed the noodles' formulation in 1997, which consumers disliked, forcing Nestle to revert the recipe in 1999. The document also examines why Maggi's atta noodles variant failed and strategies Nestle can adopt to sustain Maggi's brand image.
This document discusses Maggi noodles, a brand owned by Nestle. It provides details on Maggi's history and introduction in India in 1982. Maggi quickly gained popularity and market share through promotions targeting children and working women. The document outlines Maggi's product portfolio expansion and covers its marketing strategies over time, including pricing, distribution, and promotions. It analyzes Maggi's performance through the stages of the product lifecycle model and discusses its current market leading position in India's instant noodles category.
Nestle introduced the Maggi brand in India in 1982 with the launch of Maggi 2 Minute Noodles, creating a new food category. Over the years, Maggi became a popular snack. To cater to health-conscious customers, Maggi introduced new varieties with less salt and no trans fat. Maggi also launched healthy instant noodle products made with whole wheat flour and vegetables to position itself as a 'Health' brand. The brand was extended to include sauces, soups, and other products.
Maggi seems to be just that perfect quick-snack between meals and is so easy to make that kids sometime make it alone. At the end of May 2015, India’s Food safety administration (FDA) ordered Nestle India to recall its popular Maggi noodles after tests showed that the product contained high levels of lead and MSG. Hence, the 2-minutes ready Maggi Noodles ban in India was declared.
Maggi India Twitter account makes an impressive effort to respond to every tweet from customers on this issue with a pre-prepared statement explaining that lead occurs naturally in soil and water.
Maggi India Twitter account makes an impressive effort to respond to every tweet from customers on this issue with a pre-prepared statement explaining that lead occurs naturally in soil and water.
On August 13, the ban was set aside by the court but it asked Maggi to undergo a retest at labs certified by National Accreditation Board for Testing and Calibration.
Nestle India faced a major crisis when its popular Maggi noodles brand was banned in India in 2015 over high lead content and the presence of MSG. Tests by some state regulators found lead levels and MSG above permissible limits, leading to the nationwide ban. Nestle challenged the ban in court, citing issues with the testing procedures. Further tests by accredited labs mandated by the court found Maggi noodles to be safe. Nestle then resumed production and sales of Maggi noodles in India. The crisis impacted Nestle's stock price and sales but the company maintained the products were safe for consumption.
This document summarizes research conducted on the brand communication of Maggi noodles in India. The research aimed to understand consumer perception and popularity of Maggi among demographics. It utilized quantitative and qualitative methods, including a questionnaire with 40 participants. Key findings include that Maggi has high top-of-mind awareness, trial rates, and repeat purchase rates due to effective branding through consistent logo, packaging, and emotional advertisements. However, Maggi faced a major controversy in 2015 when its products were banned for six months due to excessive lead levels, hurting its brand image. It since staged an impressive comeback by regaining consumer trust and market share leadership.
This document presents a demand analysis of Maggi noodles conducted by a group of students. It includes an introduction to Maggi noodles and its brand journey in India. A segmentation, targeting, positioning, and differentiation (STPD) analysis is presented. The results of a survey conducted in Navi Mumbai are summarized, asking questions about consumption habits and brand perception of Maggi noodles. The conclusion is that Maggi has achieved a strong position in the market and is least affected by competitors due to its focus on taste. The experience of conducting the survey provided insights into consumer behaviors and perceptions.
Nestlé is the world's largest health, nutrition and wellness company that sells a wide range of food and beverage products. It aims to provide consumers with the most nutritious choices and deliver improved shareholder value. Some of Nestlé's popular products in Bangladesh include Maggi noodles, Milo breakfast cereals, and Nido fortified milk. While Nestlé faces threats from competitors, it employs strategies like market penetration, relationship marketing and focusing on cost leadership to continue growing its market share in Bangladesh. The company also prioritizes responsible sourcing and community engagement to manage its social and cultural impacts.
Maggi extended its brand through new products like 2-minute noodles, sauces, pickles, macaroni, instant mixes, and coconut milk. However, Maggi struggled to sustain sales of its flagship noodles and achieve success with extensions. Maggi then repositioned its noodles to target working women by focusing on being easy to cook. This failed, so Maggi repositioned noodles for children and women by emphasizing fast cooking and good taste. Maggi also launched atta noodles targeting all family members with a focus on taste and health.
Brand Loyalty and Consumer Buying Behaviour towards maggiUtkarsh Verma
A Project on the consumer buying behaviour and brand loyalty towards nestle maggi after the recent ban that it went through,
this project focuses on each aspect of the brand internally and externally to analyse and interpret the results after proper research.
This document provides a company profile and overview of Nestle India Limited, a food and beverage company headquartered in Gurgaon, India. It discusses Nestle's principal activities of manufacturing and distributing food products across India. It also briefly describes some of Nestle's popular sauce products like Maggi tomato ketchup and highlights key details about Maggi sauces' brand and market performance in India.
Britannia Industries Limited is an Indian food corporation based in Kolkata that is famous for its popular Britannia and Tiger biscuit brands. It has around a 38% market share in India. The company was established in 1892 and manufactures and sells biscuits, bread, rusk, cakes, and dairy products. It has grown steadily over the years, with sales growing at a compound annual rate of 16% between 1998-2001. Currently, 90% of its annual revenue comes from biscuits.
The document discusses research conducted to understand customer preferences for instant noodles. It involved primary data collection through focus group discussions and questionnaires. The analysis included univariate, bivariate and multivariate techniques.
Three key customer clusters were identified: young single individuals aged 19-24 from lower income families, working individuals aged 25-30 from middle income families, and wealthy students aged 19-24. The primary drivers of preference for Maggi were found to be convenience factors like preparation time and brand image. Competitor brands were driven more by health perception and variety of offerings. Regression analysis showed ease of preparation, availability, brand and advertising positively influenced Maggi preference while competitors benefited more from health perception and variety.
This document provides information about Amul ice cream including its history, products, market share, competitors, and costs. It summarizes that Amul ice cream was formed in 1946 as a dairy cooperative in India. In 1997, Amul entered the ice cream market in Mumbai and expanded to other cities between 1997-2002. It quickly became the number 1 ice cream brand in India with a 38% market share, four times larger than its closest competitor Kwality Walls. The document also includes cost sheets that breakdown the costs to produce 100,000 units of Amul ice cream.
The document analyzes the cost sheet of Dabur India Limited for the year 2010-2011. It prepares the cost sheet, analyzes various cost elements, and applies concepts of marginal costing. Key findings include direct materials constituting 5.91% of prime cost, advertising expenses accounting for 74.59% of selling and distribution overhead, and fixed costs representing 27.42% of total costs. Marginal costing tools like contribution, P/V ratio, break-even point, and margin of safety are also calculated.
Britannia Industries is one of India's largest food companies known for biscuits like Tiger and Marie Gold. The document analyzes the marginal costs of Britannia through a cost sheet showing materials, labor, overhead costs and profit/loss. It then performs a cost-volume-profit analysis, calculating the break-even point, profit-volume ratio, and margin of safety. Comparing 2011-2012, sales increased while expenses remained stable, improving the profit-volume ratio and increasing the margin of safety, lowering the company's risk level.
Cost sheet of a chocolate company and its analysisamardeepbardhan
This document provides an overview of a management accounting project for Goobers Chocolate. It includes the company profile of Blumenthal Chocolate Company, which introduced Goobers in 1985 in India. The business plan and strategy for Goobers Chocolate is to target younger consumers and middle age groups by launching different pack sizes before Christmas and New Year at promotional prices and distributing free samples. The document also covers the ingredients, production process, competitors and a SWOT analysis of Goobers Chocolate.
This document appears to be a student's research project report on customer satisfaction with Maggi noodles in Bangalore, India. It includes an introduction, product profile, organizational structure, definitions of key marketing terms, and outlines the consumer decision making process and influences on Maggi noodles. The report was submitted in partial fulfillment of an MBA program and was supervised by Shobha Devi, a management lecturer.
Brand Maggi :Nestle's powerful Arm
The report entitled A Study of “Brand Maggi” deals with the study of Maggi brand that was launched in India in the year 1983, by Nestle India Limited, which became synonymous with noodles. This research tries to find awareness of Maggi& its product line with that of its competitors. The introduction provides the company background, operational & other important information provided by the company, which would assist in taking the decision for the right brand extension strategy for Maggi.
Marketing project -_report_on_nestle_fruit_yogurtBelle Cao Khánh
The document is a marketing report on Nestle Fruit Yogurt submitted to a university professor. It provides an overview of Nestle's vision and introduction. It then analyzes Nestle Fruit Yogurt's current marketing mix, including its product branding and the 4Ps of promotion, place, and price. Segmentation, targeting, positioning, and the product's macro and microenvironment are also discussed. Finally, the report proposes enhancements to the marketing mix and concludes with the professor's comments.
A study of maggi brand repositioning and extensionProjects Kart
This document provides an overview of Maggi's brand extension and repositioning efforts in India. It discusses how Maggi noodles were initially launched and positioned in India in the 1980s, targeting working women. It then summarizes Maggi's various brand extensions over the years, such as soups and sauces, and how many of these extensions failed. The document also describes Maggi's formulation changes in the late 1990s that negatively impacted taste and led to a customer backlash, forcing Nestle to relaunch the original Maggi.
This includes our project report for our Marketing course. We had done a lot of study on the instant noodles market in India and Maggi being the unbeaten leader in this category.
It also involves considering 4 hypotheses and market survey for testing these hypotheses. We have used only secondary data. We have tried to mention all our sources also.
- Nestle is the world's leading nutrition company that aims to provide consumers with healthy, nutritious food choices.
- Maggi noodles was launched in India in 1983 and has become synonymous with instant noodles. It positions itself as a "Fast to cook! Good to eat!" product.
- Maggi targets children, teenagers, students, and working women by positioning its 2-minute noodles as a convenient snack that can be prepared quickly.
This document is a research report comparing customer satisfaction between Maggi noodles and Sunfeast pasta. It includes an introduction, literature review, research methodology, findings and analysis, conclusion, and references. The introduction provides background on Maggi, including its history and brand story. It also provides background on Sunfeast pasta, including its history and introduction in India. The literature review covers noodles and pasta in general, the major players in each category, and the differences between noodles and pasta. It also lists the available flavors for Maggi and Sunfeast pasta.
Nestle's Maggi noodles faced major challenges in India in 2014-2015. Laboratory tests found MSG and lead in some Maggi noodle samples, leading the government to ban the product nationwide. This caused a huge loss in brand value and sales for Maggi. Nestle used strategies like emotional advertising, increased promotions, and digital marketing to revive the Maggi brand as it worked to lift the ban. These efforts helped Nestle regain some market share, but Maggi still faces competition from brands that gained popularity during the ban period. Rebuilding complete consumer trust in food safety will take more time and effort.
1) Maggi Tomato Ketchup is a product of Nestle India Ltd. that dominates 47% of the Indian ketchup market, competing with other brands like Kissan.
2) The document analyzes the 4 P's of Maggi Tomato Ketchup's marketing mix - Product, Price, Place, and Promotion. It examines attributes, pricing strategy, distribution network, and promotional activities.
3) Statistical analysis was conducted and recommendations were suggested to improve Maggi Tomato Ketchup's marketing performance and take advantage of opportunities in the growing Indian ketchup market.
Nestle introduced Maggi noodles in India in 1982, initially targeting working women by positioning it as a fast to cook convenience product. However, sales did not pick up. Research later revealed that children liked the taste of Maggi noodles the most. Nestle then shifted its focus to children and their mothers, positioning Maggi noodles as a fun product for children and a convenience product for busy mothers. The tagline was changed to reflect this new positioning of Maggi noodles as a fast to cook and good to eat product.
Nestle is a multinational food and beverage company headquartered in Switzerland. It operates factories worldwide and sells billions of products daily. Maggi, Nestle's ready-to-eat food brand, was hugely popular in India until a food safety scandal in 2015. Tests found unexpected levels of lead and MSG in Maggi noodles, leading to a nationwide ban in India that cost Nestle $200 million. The scandal damaged Nestle's brand and the trust of consumers in its products. Nestle had to recall Maggi noodles from stores and work to regain customer confidence in the wake of the food safety crisis.
- The document discusses research methodology for a case study on Maggi brand noodles in India.
- It provides background on the origins of Maggi as an instant food brand in Switzerland in the 1800s. Maggi was later acquired by Nestle.
- Maggi noodles were launched in India in the 1980s and quickly became popular among children after initially targeting working women.
- The research plan involves a survey of 50 consumers in the Amity region of India to understand brand perceptions and preferences of Maggi products.
Me and meri maggi(25 years of success story)madhurisakpal
Maggi, Nestle's instant noodle brand, is celebrating its 25th anniversary in India. It was launched in 1984 and became very popular due to its convenience of being ready in two minutes. Over the years, Maggi has faced challenges from competitors but has managed to retain its leading position in the market. For its silver jubilee, Maggi is launching a campaign inviting consumers to share their memories and experiences of eating Maggi to strengthen the emotional connection with the brand.
The document acknowledges and thanks various people who helped in completing a report on Lipton Cardamom Tea. It thanks Allah for giving the ability to complete the report. It also thanks the teacher, Miss Shehnaz Meghani, whose guidance helped in preparing the report. Special thanks are given to Mustafa A. Khan, Managing Director of Trust Professional (Pvt) Ltd, who provided detailed information about the product. The document states that all those involved played an active role and hopes the report provides useful knowledge and information to readers.
The document provides an overview of the FMCG industry, Nestle company, and Maggi noodles. It discusses that the FMCG industry deals with consumer packaged goods that are regularly consumed. Nestle is the world's largest food and beverage company, originating in Switzerland in 1866. Maggi noodles were first created in Switzerland in the 1880s as an instant food and were launched in India in 1983 by Nestle, becoming synonymous with instant noodles.
Nestle introduced the Maggi brand in India in 1982 with Maggi 2-minute noodles, bringing the first instant noodle to the Indian market. Maggi became hugely popular and captured around 90% of the market share. However, its market dominance declined in the 1990s as competitors like Top Ramen entered. Nestle repositioned Maggi to focus on health in the early 2000s by introducing variants with whole wheat and other ingredients. Currently, Maggi remains a market leader in India and has expanded its product line while promoting its noodles' convenience and taste as well as nutritional benefits.
The key issues faced by Maggi in 2015 were:
1) Samples of Maggi noodles in India showed excess levels of lead and MSG above permissible limits.
2) Maggi was banned in India and Nestle had to recall stock worth 1.2 billion, costing an additional 1.1 billion.
3) This controversy caused huge losses for Nestle - a 20% reduction in revenue and 15% drop in stock price resulting in 100 billion loss in market capitalization.
Nestle introduced the Maggi brand in India in 1982, creating a new category of instant noodles. Maggi became very popular as a snack food in India. Nestle segmented the market based on lifestyle and eating habits, targeting kids, youth, and working women as convenience products that cook quickly. Maggi positioned itself as fulfilling hunger fast in 2 minutes with slogans about taste, health, and ease of preparation. Over time, Maggi expanded its product line and used promotions, celebrity endorsements, and market research to strengthen its brand in India.
The document provides a financing plan for Mymuesli, a German startup that allows customers to customize their own muesli cereal combinations online. It summarizes the company's origins and business model, analyzes the breakfast cereal market and Mymuesli's position within it, and evaluates various valuation techniques to determine Mymuesli's current valuation for potential investors. The breakfast cereal market is large but established, so Mymuesli's customization approach provides a unique value proposition. However, it operates in a competitive industry dominated by giants like Kellogg's and General Mills. The document concludes with a discounted cash flow valuation of Mymuesli to inform financing decisions.
This document provides a history of Nestle including its founding in Switzerland in the 1860s by Henri Nestle who developed milk-based baby food. It later expanded into other products. In 1874, Jules Monnerat purchased Nestle. The document discusses Nestle's vision, mission, strengths, weaknesses, opportunities, and threats. It also outlines Nestle's acquisition history and popular Maggi products. Maggi was invented in 1884 and later merged with Nestle in 1980. The document proposes a marketing strategy for launching a new Cheesy Maggi flavor in Goa, India, targeting all ages and focusing on packaging, taste, and being a 2-minute noodle.
A project report on consumer satisfaction and awareness towards siddhadhara m...Babasab Patil
This document discusses the dairy industry in India and the National Dairy Development Board (NDDB). It provides a brief history and overview of the development of the dairy industry in India from the pre-independence period through the establishment of the NDDB in 1965. The NDDB was founded to modernize the dairy industry and transform it into an instrument for rural development. Through its Operation Flood program spanning 26 years, India became the world's largest milk producer. As of 2006, over 12 million farmers were members of over 17,000 village dairy cooperatives across India procuring over 21 million liters of milk daily.
2. EXECUTIVE SUMMARY
Nestlé India is a subsidiary of Nestlé S.A. of Switzerland. With six factories and a large
number of co-packers, Nestlé India is a vibrant Company that provides consumers in India
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 79.3%. A testament to
Nestlé's domination of the sales of plain noodles is the fact that for its instant noodles brand
Maggi, among all its global offices, India accounts for the highest level of volume sales for
the company.
This marketing plan analyses the current marketing mix of Maggi Noodles, studies the
popularity of the two new health variants Vegetable Atta and Dal Atta Noodles and makes
suggestions with regard to introducing a new brand “Cup O Maggi” in the cup noodles
segment. Various tools like surveys and secondary sources of information have been utilized
for the purpose of this analysis.
3. TABLE OF CONTENTS
2. SITUATION ANALYSIS..................................................................................................... 5
2.1 Market Summary............................................................................................................ 5
2.1.1 TARGET MARKETS ........................................................................................... 5
2.1.2 MARKET DEMOGRAPHICS ............................................................................. 5
2.1.3 MARKET NEEDS ................................................................................................. 6
2.1.4 MARKET TRENDS .............................................................................................. 6
2.1.5 MARKET GROWTH............................................................................................ 8
2.2 SWOT............................................................................................................................ 10
2.3 COMPETITION........................................................................................................... 11
2.3.1 TOP RAMEN ....................................................................................................... 11
2.3.2 ITC SUNFEAST PASTA .................................................................................... 11
2.4 CURRENT MAGGI NOODLES BRAND................................................................... 12
IDENTITY/KAPFERER’S PRISM................................................................................... 12
2.5 PRODUCT OFFERING .............................................................................................. 13
2.6 PRODUCT DISTRIBUTION ...................................................................................... 13
2.7 KEYS TO SUCCESS.................................................................................................... 14
2.7 CRITICAL ISSUES AND CHALLENGES ................................................................ 14
3. MARKETING STRATEGY............................................................................................. 15
3.1 MISSION...................................................................................................................... 15
3.2 MARKETING OBJECTIVES ..................................................................................... 15
3.3 INDUSTRY SEGMENTATION .................................................................................. 16
3.4 TARGET SEGMENTS FOR MAGGI NOODLES ..................................................... 22
3.4.1 MAGGI 2 MINUTE NOODLES ........................................................................ 22
3.4.2 MAGGI CUP O NOODLES ............................................................................... 23
3.5 POSITIONING OF MAGGI ....................................................................................... 23
3.5.1 MAGGI 2 MINUTE NOODLES ........................................................................ 23
3.5.2 CUP O MAGGI.................................................................................................... 23
4. MARKETING MIX .......................................................................................................... 24
4.1 CONSUMER SOLUTION ........................................................................................... 24
4.1.1 IMPROVING THE DAL ATTA VARIANT..................................................... 24
4.1.2 NEW PRODUCT: THE CUP-O-MAGGI ......................................................... 24
4.1.3 PACKAGING ...................................................................................................... 24
4.2 CONSUMER COST ..................................................................................................... 25
4.3 CONVENIENCE.......................................................................................................... 26
4.4 COMMUNICATION.................................................................................................... 27
4.5 MARKETING RESEARCH ........................................................................................ 28
5. FINANCIALS .................................................................................................................... 31
5.1 BREAKEVEN ANALYSIS OF A 100 TONNE CAPACITY PLANT OF CUP O
MAGGI NOODLES ........................................................................................................... 31
5.1.1 BREAK-EVEN ANALYSIS................................................................................ 31
FINAL TOTAL COST ANALYSIS ............................................................................ 33
5.1.2 ANALYTICAL BREAK-EVEN ANALYSIS.................................................... 33
5.1.3 GRAPHICAL BREAK-EVEN ANALYSIS ...................................................... 34
5.2 SALES FORECAST..................................................................................................... 34
APPENDIX A: INDIAN INSTANT NOODLES MARKET GROWTH GRAPHS ........ 36
APPENDIX B: NESTLE MAGGI NOODLES FORECAST RETAIL SALES .............. 37
4. 1. INTRODUCTION
Ever since its launch in India in 1983, this brand has become synonymous with noodles. The
bright red and yellow colours of the packet with the brilliant blue “2-minute Noodles”
printed on it has found a place on every kitchen. Over the years, Maggi has grown as a brand
and positioned itself as a “Fast to cook! Good to Eat! “food product.
The history of this brand traces back to the 19th century when industrial revolution in
Switzerland created factory jobs for women, who were therefore left with very little time to
prepare meals. Due to this growing problem Swiss Public Welfare Society asked a miller
named Julius Maggi to create a vegetable food product that would be quick to prepare and
easy to digest. Julius, the son of an Italian immigrant came up with a formula to bring added
taste to meals in 1863. Soon after he was commissioned by the Swiss Public Welfare Society,
he came up with two instant pea soups & a bean soup- the first launch of Maggi brand of
instant foods in 1882-83.Towards the end of the century, Maggi company was producing not
just powdered soups, but bouillon cubes, sauces and other flavourings.
However in India (the largest consumer of Maggi noodles in the world!) it was launched in
1980 by Nestle group of companies. Maggie had merged with Nestle family in 1947.
When launched it had to face a stiff competition from the ready to eat snack segments like
biscuits, wafers etc. Also it had other competitor the so called home made snacks which are
till today considered healthy and hygienic. Hence to capture the market it was positioned as a
hygienic home made snack, a smart move. But still this didn’t work, as it was targeted
towards the wrong target group, the working women.
After conducting an extensive research, the firm found that the children were the biggest
consumers of Maggi noodles. Quickly a strategy was developed to capture the kids segment
with various tools of sales promotion like pencils, fun books, Maggi clubs which worked
wonders for it. No doubt the ads of Maggi have shown a hungry kid saying “Mummy bhookh
lagi hai” to which his mom replies “Bas do minute!” and soon he is happily eating Maggie
noodles. Further the MAGGI 2-MINUTE Noodles has been renovated to provide 20% of the
RDA 1 of Calcium and Protein for the core target group building on the nutrition proposition
“Taste bhi health bhi”. The company could have easily positioned the product as a meal, but
did not, as a study had shown that Indian mentality did not accept anything other than rice or
roti as meal. They made it a easy to cook snack that could be prepared in just two minutes.
The formula clicked well and Maggi became a brand name.
1
Recommended Dietary Allowances for children of 7–9 years as per “Nutritive Value of Indian Foods”, published by Indian
Council of Medical Research, Reprinted ‘04.
5. 2. SITUATION ANALYSIS
Nestlé’s Maggie noodles is the leading brand in the instant noodles segment in India, enjoying
a market share of 79.3%. The brand has grown to an estimated Rs 200 crore & contributes to
around 10% of Nestle India’s top line. Being the pioneer in the noodles market has given it a
first mover’s advantage over other brands. Maggi has regularly come up with new flavours
and has recently launched two variants- Vegetable Atta and Dal Atta noodles, catering to the
increasing demand for healthy snacks.
2.1 Market Summary
2.1.1 TARGET MARKETS
Primary target: Children (<16)
Nestle plans to widen its target audience by launching new variants Vegetable and Dal atta
noodles for health conscious people.
2.1.2 MARKET DEMOGRAPHICS
Demographics:
Region: urban, semi-urban, rural (recent)
Occupation: Housewives, working professionals, self-employed
Sex : Unisex
Income: 1,20,000 p.a. upwards
Social class: Middle and upwards
Family life cycle: Young, single, married with children.
Behavioural:
Occasions: Regular, Everyday user-urban, rural-depends on the temporal aspects of the
consumer’s life(varied usage in terms of time of time of day, week, month, year)
User status: first time user-rural, potential users-semi-urban, heavy users-urban
Usage rate: Heavy user-urban, light-rural, medium-semi-urban
Loyalty status: hard core and shifting loyals
Buyer-Readiness Stage: rural-some are aware, semi-urban:some intend to buy(aware,
informed),urban: informed(some desire,some intend to buy)
Attitude toward product: Enthusiastic, positive
Psychographics:
Lifestyle: Hard pressed for time
6. 2.1.3 MARKET NEEDS
The urban Indian is used to having his dinner late from around 8:30 pm to as late as 11 pm.
Hence a convenient snack between lunch and dinner is an often exercised option. In rural
areas, smaller priced packs stimulates demand.
Maggi is a fun and convenience brand which sits strongly in its position as a "good to eat, fast
to cook" anytime snack and is popular across different age groups. Opportunities in
practically all consumption categories arise in terms of "reach" and "medium of
consumption". Hence the onus is on the company to make it easily available and affordable
and in different sizes, catering to different categories of users like the new Maggi chota pack
conveniently priced at Rs 5 for 50gms. The Indian palate is not too adventurous in terms of
trying out new flavours.In fact today, Maggi have settled at standard flavours such as curry,
masala, tomato and chicken and not much experimentation is necessarily required in the
noodles market. People prefer to have it easily available and affordable.
2.1.4 MARKET TRENDS
The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion
in 2015.
Penetration level is only 30% for Maggi Noodles in urban areas as well as per capita
consumption for the Instant noodles and pasta segment is low indicating the untapped
market potential.
Urban Rural
Population 2005-06 (mn household) 53 135
Population 2009-10 (mn household) 69 153
% Distribution (2005-06) 28 72
Markets (Towns) 3,758 62,700
Universe of Outlets (mn) 1 3.3
Urban profile
Source:Statistical Outline of India (2005-2006)
Burgeoning Indian population, particularly the middle class segments and the rural
segments, presents an opportunity to makers of branded products to convert
consumers to branded products.
Growth is also likely to come from consumer 'upgrading' in the matured product
categories.
At 4% constant value CAGR into the forecast period, value growth for packaged food
is predicted to remain healthy. Growth will continue to be fuelled by convenience
products such as noodles and ready meals with 200 million people expected to shift to
processed and packaged food by 2010
Manufacturers are introducing low-priced goods in smaller pack sizes. As a result, the
rural marketing efforts have pushed the demand for sachets in many consumer goods
7. markets. Priced at Rs0.50-1.00, sachets have proved to be extremely popular in
smaller towns and villages, where households cannot afford to buy larger packs due
to financial constraints.
Consumption pie
Source: KSA Technopak Consumer Outlook 2004.
An average Indian spends around 40 per cent of his income on grocery products.
1996 2001 2006
Population (millions) 846 1,012 1,087
Population <25 years of age 480 546 565
Urbanisation % 26 28 31
Consumer Profile
Source: Statistical Outline of India (2005-2006)
Rapid urbanisation, increased literacy and rising per capita income, have all caused
rapid growth and change in demand patterns, leading to an explosion of new
opportunities. Around 45 per cent of the population in India is below 20 years of age
and the young population is set to rise further.
While instant noodles are still not generally consumed as main meals in India, more
individuals are bucking this trend and accepting them as an option. This is, however,
mostly restricted to busy working adults who live independently or only with their
spouse, away from their parents, and who have little time to prepare their own meals
at home. Given the requirements for convenience and saving time, these individuals
resort to easy-to-prepare meals, such as instant noodles.
Increased health consciousness and abundant production of quality soyabean also
indicates a growing demand for soya food segment.
8. 1200
1000
800
600 Incom e (US
$/annum )
400
200
0
2003 2015
Rise in disposable income (US$/annum)
Source:Euro monitor, BRICs Report (Goldman Sachs)
The BRICs report indicates that India's per capita disposable income, currently at
US$ 556 per annum, will rise to US$ 1150 by 2015 -another demand driver. Spurt in
the industrial and services sector growth is also likely to boost the urban consumption
demand.
Only about 8-10 per cent of output is processed and consumed in packaged form, thus
highlighting the huge potential for expansion of this industry. Currently, the semi
processed and ready to eat packaged food segment has a size of over US$ 70 billion
and is growing at 15 per cent per annum.
FICCI Federation of Indian Chambers of Commerce and Industry has predicted an
overall growth of culinary products/snack food (10%)
2.1.5 MARKET GROWTH
General growth of the Indian Noodles sector FY 2005-2006
FICCI states that the culinary products and snack category, under which Maggi
noodles is classified, has had a robust growth of 8%.
Growing by a more than robust 21% in current value and 16% in volume, growth in
noodles will be among the fastest in the various packaged food products in India.
(Refer Appendix A: Indian Instant Noodle Market Growth Graphs)
Current value sales of noodles in stood at slightly over Rs 9 billion, with pouch
instant noodles accounting for more than 66% of the total value sales.
Growth of Maggi Noodles FY 2005-2006
For the FY 2005-2006, the growth of Maggi noodles was an impressive 15%, with
sales at Rs 6.75 billion and profit at Rs 2 billion.
9. Maggi Market Share in Instant Noodles
Category
79.5
79
Market Share (%)
78.5
78
77.5
77
2000 2001 2002 2003 2004 2005 2006
Maggi Market Share in Instant Noodles Category (2000-2005)
Source: Euromonitor International Packaged Food in India May 2006
It has maintained a market share of around 78% despite increasing competition.
The relative performances of the Maggi variants has been presented using the BCG
matrix
The Boston Consulting Group’s
Growth-Share Matrix
High STARS QUESTION MARKS
( MAGGI Veg Atta Noodles) (MAGGI Chicken, Dal Atta
Noodles)
Market
Growth
Rate CASH COW DOGS
(MAGGI Masala flavour) (MAGGI Tomato, Curry
Low flavours)
High Low
Relative Market Share
10. 2.2 SWOT
Strengths Weakness
Strong brand recall and the product is Tagged as a product having no health value.
almost eponymous to the brand. It has tried to bring in innovation but has
Market leader with 79.3% market failed.(Dal Atta Noodles refer survey
share in terms of value. noodles).
Highest advertising share(72% (TV The product features have remained almost
AdEx 2004-05)). constant since inception in 1983 with any
Emotional relationship with the trial of innovation misfiring.
consumer. Market share has fallen from the 80% in
A strong distribution network of the 1998-99 to 79.3% in 2005-06.
parent company Nestle.
Opportunities Threats
The instant noodles segment is Competition is increasing with established
projected to grow at a tremendous competitors in other segments are foraying
rate with the market size doubling by into the noodles segment seeing the
2010. capacity of growth.
Increase in the potential consumer Top ramen the prime competitor has come
base i.e. single working professionals up with new exciting instant noodle
and student population offerings like cup noodles and mug noodles
Rapid economic growth and rising which threatens to eat into Maggi’s market
disposable incomes make a strong share.
case for a premium brand like Maggi. Foreign players like Wai Wai and Rum
Upward trend of convenience food Pum have forayed into the noodles market
consumption. and have made their brand presence in
Huge untapped serviceable upward eastern markets while indigenous
class rural base. Parle is threatening to offer their
distribution network to international noodle
brands wishing to make an entry.
Top Ramen has repositioned itself on a
health platform with a new baseline “Get on
Top” fortifying its product with calcium and
vitamins.
The product as priced higher than its main
rival Top Ramen.
11. 2.3 COMPETITION
2.3.1 TOP RAMEN
'Don't be a noodle, be a Smoodle,' was the ad that brought the Top Ramen brand into
limelight when it was launched in 1991.
Market share FY 2005-2006: 14%
Variety:
a) Packet Noodles: Macho Masala, Funky Chicken, Oye Tomato, Curry Smoodles.
b) Cup Noodles: Spicy Vegetable, Tangy Chicken
Packaging and Pricing:
Pack Size Price
Top Ramen (gm) (Rs)
Packet Noodles 50 5
100 10
400 34
Cup Noodles 80 20
Distributor: Marico Industries
Distributor strength: About 130000
USP: 'Don't be a noodle, be a Smoodle,' innovative flavours and its cup noodles
2.3.2 ITC SUNFEAST PASTA
ITC launched India's first instant pasta snack, Sunfeast Pasta Treat in 2005. Made from high
protein Durum wheat, Sunfeast Pasta Treat is not fried and does not contain maida, making it
a nutritious snack. This ready to cook pasta comes with a sauce maker inside the pack.
12. Market share FY 2005-2006: The ready-to-eat Sunfeast Pasta Treat has clocked 6% of the
branded noodles volume in just one year.
Variety: It is currently available in four exciting flavours: Masala, Tomato and Cheese, Sour
Cream Onion and Cheese.
Pricing: priced at Rs. 12/- for the Masala flavour and Rs.15/- for Tomato and Cheese, Sour
Cream Onion and Cheese.
Packaging: Each pack is an 83 gm pack with a 15 gm sauce maker
Distributor: ITC Limited
USP: Sunfeast is made from durum wheat and is promoted as a healthy alternative to instant
noodles made from the less healthy maida (a type of wheat flour that is slightly lower in
quality).
2.4 CURRENT MAGGI NOODLES BRAND
IDENTITY/KAPFERER’S PRISM
Physique Personality
Yellow packaging, Playful children,
Tasty Hurried youth
Relationship
Culture
Fast to cook and good to
Maggi Noodles Family,
eat,
Dual Income,
“Mummy bhookh lagi”,
“Taste bhi health bhi
Self Image
Reflection Kid,
Family oriented Independence
Fun-loving
13. 2.5 PRODUCT OFFERING
Maggi Noodles comes in 4 variants:
1. MASALA: This is the original and most widely liked flavour of Maggi and hence has
been brought out in 6 different packaging sizes; the maximum in any variant
2. CHICKEN
3. CURRY
4. TOMATO
5. VEGETABLE ATTA NOODLES: Launched in April 2005, this variant had
contributed to 11 per cent in value to the instant noodle category within 7 months
of its launch; this was the beginning of the “Taste bhi Health bhi” focus
6. VEGETABLE DAL ATTA NOODLES: Continuing the healthy snacks trend, this
variant was launched in May 2006.
Pack Size Price
MAGGI 2 Minute Noodles (gm) (Rs)
Masala 50 5
100 10
200 20
400 38
600 54
800 72
Chicken 100 10
Curry 100 10
Tomato 100 10
Vegetable Atta Noodles 100 13
400 50
Vegetable Dal Atta Noodles 100 13
400 50
Variants, Packaging, Prices
Source: Nestle India
2.6 PRODUCT DISTRIBUTION
Maggi Noodles is being sold through 2,60,000 outlets (FY 2005-2006), which comprise of
grocers, convenience stores, supermarkets and miscellaneous channels. The average Indian
still prefers shopping through the traditional grocers or “kiranas” as can be inferred from the
higher distribution of 62.8%.The rising popularity of the “mall-culture” in the urban and
semi-urban areas also reflects on the slight increase in distribution through supermarkets /
hypermarkets.
Channel 2005 2006
Traditional grocers 63.0 62.8
Convenience stores 20.0 20.0
Supermarkets/hypermarkets 16.6 16.8
Others 0.4 0.4
Overall 100.0 100.0
India Dried Pasta & Noodles off-trade distribution channels, by value, 2005-2006 (%)
Source: Denis Mason, Datamonitor
14. 2.7 KEYS TO SUCCESS
Maggi has had the first mover advantage with respect to the Instant noodles segment
in the Indian market.
Continued innovation in terms of flavours and themes – from an ordinary 2 minute
bite to a healthy snack.
2.7 CRITICAL ISSUES AND CHALLENGES
To sustain its growth and maintain its position as the leader in the Instant Noodles
segment: Nissin’s Top Ramen and recently ITC’s Sunfeast pasta have been eating
into Maggi Noodles’ market share of the Instant Noodles Market.
To be increasingly viewed as the preferred snack of Indians.
15. 3. MARKETING STRATEGY
3.1 MISSION
To be considered as the number one snacking option of India combining the values of
convenience, taste and health.
3.2 MARKETING OBJECTIVES
Increase value market share to 80% in the instant noodles market by 2007-08 from
the current 79.3%.
To promote Maggi noodles as a healthy ready to eat convenient food among mothers
and single working professionals.
To provide line extension by introducing Cup Noodles/Mug Noodles.
To upgrade the existing product features viz. packaging, ingredients, special additives
based on consumer feedback.
The objectives were arrived at based on the analysis of Ansoff’s Grid.
ANSOFF’S PRODUCT/MARKET EXPANSION GRID
Existing products New products
MARKET PENETRATION PRODUCT DEVELOPMENT
Existing
Markets ( Upgrade existing variants of (Introduce new variants of
MAGGI) MAGGI)
New MARKET DEVELOPMENT DIVERSIFICATION
Markets
(Finding new markets for (Launch totally new variants of
existing variants of MAGGI) MAGGI in totally new markets)
16. 3.3 INDUSTRY SEGMENTATION
The taste preferences and eating habits of consumers bear a high correlation with their
age. Based on this, we can segment the market into the following age groups:
1990 1995 2000 2005 2010 2015
Children: (2-9 years old) 169,999 181,521 187,940 189,211 184,457 184,376
Tweenagers: (10-14 years old) 89,781 100,560 109,302 114,583 117,137 114,226
Teenagers: (13-19 years) 120,293 127,645 142,432 153,781 160,728 162,495
Studying Age: (18-22 years old) 80,812 85,918 92,074 103,179 110,642 115,126
Young Adults: (15-29 years old) 230,839 249,149 270,576 294,103 319,267 336,193
Middle-Aged Adults: (30-59 years old) 243,295 277,343 316,065 358,164 398,405 440,655
Baby Boomers: (40-59 years old) 134,212 151,646 174,986 202,754 232,801 261,349
Pensioners: (aged 60+) 57,029 65,643 75,712 86,585 99,728 117,168
Age wise break up and forecast of the population
Source: UN census data, Euromonitor database
Age wise break up of the population (2005)
86,585 189,211
202,754 Children: (2-9 years old)
114,583 Tweenagers: (10-14 years old)
Teenagers: (13-19 years)
Studying Age: (18-22 years old)
153,781 Young Adults: (15-29 years old)
Middle-Aged Adults: (30-59 years old)
358,164
103,179 Baby Boomers: (40-59 years old)
Pensioners: (aged 60+)
294,103
Agewise Breakup of Population, 2005
1) CHILDREN
Children as an age group are a marketer’s delight. With “pester power” children play a
significant role in decision making and purchase choices of just about anything ranging from
food items to beverages to chocolates. As consumers, children know exactly what they want
and do not experiment too much with flavour or colour.
Children rule
Indian families consider children to precious gifts of God, and parents in all income groups do
all they can for their offspring. Indian parents are still not completely comfortable with paid
17. baby sitters or day care help and use the larger extended family or friends to help with care
and supervision of children.
Rush for pre-school admissions
Throughout urban India, parents of nursery age children are looking to send them in the best
private school they can afford. Pre-schools for toddlers in the 2-3 age group are mushrooming
all over the country, as anxious parents recognise the perceived benefits these can bring.
'000
1990 1995 2000 2005 2010 2015
Male 87,953 93,797 97,055 97,624 95,041 94,897
Female 82,046 87,724 90,885 91,588 89,416 89,478
TOTAL 169,999 181,521 187,940 189,211 184,457 184,376
as % of 20.29 19.67 18.63 17.37 15.82 14.88
total
population
Children (2-9 years old) 1990-2015
Source:Euromonitor International from national statistics and UN
2) TWEENAGERS
The tweenagers age group consists of children on the threshold of adolescence and as a
segment are a difficult lot. Though they are not sure about their choices on an emotional
plane, they are a trendy new group that is extremely savvy and self assured when it comes to
taking decisions regarding consumer goods and wants. Urban children in this age group
would have some amount of pocket money with an upper limit of Rs100 per month. Though
allowances have gone up, parental control still exists over this market segment. Impulse foods
rule the preference scale as far as the buying behaviour of tweenagers in India is concerned.
In fact, the top six expense items for tweenagers seem to be impulse foods: 17% of the total
pocket money spent on ice creams, 12% on chocolates and 10% each on soft drinks and fast
food according to a newspaper report in the “The Times of India”.
A key role to play in decision making
With increased awareness through television and advertising, tweenagers are an important
influence on family decision-making in urban India. They have also mastered the art of
nagging their parents into making purchases of gadgets or products that they want. Among the
areas where they make their influence felt are the purchase of such items as a newly launched
chocolate bar, instant noodles and breakfast cereal.
With a penchant for hi-tech and an ease with new technology far superior to their parents,
these tweenagers are more familiar with operating mobile phones, the TV remote, DVD
player and computer programmes, as well as the product features.
Cricket-crazy boys
Cricket is the obsession and passion of boy tweenagers in India. This interest cuts across
income and socio-economic groups. Low income boys will play on the streets with makeshift
bats and stumps, middle-income children can be seen playing in gardens and at school, while
boys from more well-to-do families go and play in organised coaching camps. With their
education demanding less time at this age, parents are generally quite happy to see their boys
spending so much time on cricket.
18. Lifestyle concerns in urban India
A 2005 study of 10-16 year olds in urban India revealed a sedentary lifestyle among 72% of
the 20,000 children sampled by Lifetime Wellness Rx Ltd in the cities of Allahabad in the
north and Hyderabad in the south. Of those sampled, 52% of children showed a risk of
developing chemical dependence, with the problem probably attributable to a scarcity of
playgrounds and too much TV viewing.
Even television channels are zeroing in on this segment in recognition of this fact. There is
nothing subtle about the age group any more. They like to hear it straight and then make their
independent choices and judgements. On the flip side, they are becoming increasingly
vulnerable to media blitzkrieg.
'000
1990 1995 2000 2005 2010 2015
Male 46,682 52,240 56,672 59,329 60,571 58,960
Female 43,098 48,320 52,630 55,254 56,565 55,266
TOTAL 89,781 100,560 109,302 114,583 117,137 114,226
as % of 10.71 10.90 10.84 10.52 10.04 9.22
total
population
Tweenagers (10-14 years old)
Source: Euromonitor International from national statistics and UN
3) TEENAGERS
On the brink of adulthood, teenagers like to emphasize and express themselves in a manner
that catches attention. They have experimental with their food with a preference towards
innovative offerings but form strong opinions which they carry forward in life. They are also
predisposed towards snack items as they tend to feel hungry between traditional meals. They
have a lot of say about the food that they want to consume with limited parental control.
Mobile phones
This is the mobile phone generation in India. They are completely at ease with new
technology and are heavy users of value-added services like SMS, ring tone downloads and
cricket score updates. Most still depend on their parents for pocket money but are heavy users
of these services. In many urban, middle-income households teenagers are now given a pre-
paid SIM card with a certain value for the month, in addition to allowances for travel and
entertainment.
Hard pressed for time
Teenagers like buying books, music and expensive branded footwear, as well as watching
films and socialising with friends. Older college-going teenagers high school pupils tend to
frequent coffee bars, which are a relatively new focal point for socialising. Teenagers are also
among the regular users cinema multiplexes and entertainment zones.
This age group is extremely conscious of their facial and physical looks. They are expected to
fuel demand for skin care products as well as health and nutrition-related goods. Urban
teenagers are far more socially active today and find some difficulty in balancing their school
routines with their personal schedules.
19. '000
1990 1995 2000 2005 2010 2015
Male 62,853 66,433 74,027 79,765 83,246 84,033
Female 57,440 61,212 68,405 74,017 77,482 78,462
TOTAL 120,293 127,645 142,432 153,781 160,728 162,495
as % of 14.35 13.83 14.12 14.12 13.78 13.11
total
population
Teenagers (13-19 years old)
Source: Euromonitor International from national statistics and UN
4) STUDYING AGE
A rise in the number of colleges and institutions of higher learning both government owned
and privately financed has enabled a larger number of youth to graduate from their portals.
This population grew since 2000 but is set to stagnate in the forecast period with couples
actually postponing the child bearing decision and some even rejecting the idea of having one
at all. This age group has taken up to snacking as a way of life as they keep missing regular
meals due to erratic schedules. They have longer waking hours and due to this the traditional
three meals does not suffice with the need for filling snacks.
Rising financial freedom
With growing aspirations on the academic front and shrinking global boundaries this age
group has an unquenchable thirst for information whether through their PCs or cell phones.
With a rise in employment opportunities in the Business Process Outsourcing (BPO) sector,
more and more consumers in this age group are juggling jobs along with their studies for the
sake of the financial freedom it gives them.
Summer jobs
Until the 1990s, summer vacations were a time to relax, read and catch up with friends. This
is no longer the case. Now, teenagers either find a summer job, or undertake activities such as
a trek in the mountains, river rafting or rock climbing. Summer jobs may cover a range of
activities from delivering newspapers to working in a restaurant.
'000
1990 1995 2000 2005 2010 2015
Male 42,311 44,932 47,947 53,651 57,402 59,638
Female 38,501 40,986 44,127 49,528 53,240 55,489
TOTAL 80,812 85,918 92,074 103,179 110,642 115,126
as % of 9.64 9.31 9.13 9.47 9.49 9.29
total
population
Studying age (18-22 years old)
Source: Euromonitor International from national statistics and UN
5) YOUNG ADULTS
Young adults (15-29 years old) represent the largest spending segment in the country.
Youngsters are part of a middle-class boom in India. Of the US$30 billion spent by Indians on
themselves in 2003, young adults spent close to US$10.5 billion with their spending levels
20. rising 12% each year at twice the pace of the economy’s growth according to various trade
press publications. Young adults grew 8% in numbers over the 1999-2004 period and is likely
to grow at approximately the same pace.
Rising disposable incomes
College graduates and students still studying are landing well-paying jobs in a host of
emerging industries that barely existed at the start of the new millennium – retail chains, fast
food restaurants, mobile phone companies, call centres and data processing firms. Many have
access to disposable incomes of Rs8,000-10,000 per month thanks to the BPO boom in India.
This age group still does not have responsibilities of running a household, marriage or worry
about their children’s education. Thus, this income is almost entirely spent on non-essential
items. Most purchases made by this age group are on impulse. There are 16 million urban
consumers in the 20-25 age group.
Need for convenience
Many single working professionals have to live away from their parents due to the demand of
the jobs. This yuppies (young upwardly mobile professionals) class has a hard time preparing
food and for them convenience is major issue. They are ready to pay a premium for quality
and convenience. Also always being on the move they have a need for food item that can be
easily consumed and disposed of.
'000
1990 1995 2000 2005 2010 2015
Male 120,916 130,305 141,223 153,026 165,790 174,236
Female 109,923 118,843 129,353 141,077 153,477 161,957
TOTAL 230,839 249,149 270,576 294,103 319,267 336,193
as % of 27.55 27.00 26.83 27.00 27.38 27.13
total
population
Young adults (15-29 years old)
Source: Euromonitor International from national statistics and UN
6) MIDDLE-AGED ADULTS
These middle aged men have strict preferences over food and they generally stick to their
choices. They experiment less and go for products that will enhance their social status.
The women in this age group are ones who the primarily buy food items for the entire
household though their choices are shaped by the preferences of the household members. The
women in this segment play an important role as most of the choices of food items have to
pass their scrutiny before it is consumed in the household.
Responsibilities
Between the ages of 45 and 55, men find themselves with children who are able to leave
school or facing crucial board examinations. Some may also have wives with settled careers.
These factors make them reluctant to leave or move from their city of residence and they
would rather resign and move to another job rather than displace the family. Others find
themselves redundant in the new hire and fire labour environment. There is a trend for such
people to enter the BPO sector as well.
21. Mid-life career change
In urban India, among the middle class, there are a significant number of men who are making
career switches, some out of choice and others out of necessity. Tired of their current salaried
jobs, some are taking the entrepreneurial plunge, setting up businesses such as small IT-
service firms, adventure tourism companies or leadership training consultancies.
'000
1990 1995 2000 2005 2010 2015
Male 125,217 143,223 163,764 186,055 206,920 228,338
Female 118,079 134,120 152,300 172,109 191,486 212,317
TOTAL 243,295 277,343 316,065 358,164 398,405 440,655
as % of 29.03 30.06 31.34 32.89 34.16 35.56
total
population
Middle-aged adults (30-59 years old)
Source: Euromonitor International from national statistics and UN
7) BABY BOOMERS
The concept of baby boomers may not be that relevant to India notwithstanding the impact of
and its participation in World War II. This generation has virtually seen it all right from
Indian Independence (1947) to the Indo-Pakistan war (1965). However, having been born in
an age of constrained resources, this segment is somewhat cautious about its approach to
consumerist tendencies although it is adopting some of them. For example, a number use
mobile phones for their functional use but frown on the use of credit cards and buying
branded clothing.
Health-related products, children’s education, automobiles, retirement planning, insurance
products and vacations form the bulk of their expense.
'000
1990 1995 2000 2005 2010 2015
Male 68,010 77,278 89,882 104,720 120,490 135,142
Female 66,202 74,368 85,105 98,034 112,310 126,207
TOTAL 134,212 151,646 174,986 202,754 232,801 261,349
as % of 16.02 16.43 17.35 18.62 19.96 21.09
total
population
Baby boomers (40-59 years old)
Source: Euromonitor International from national statistics and UN
8) PENSIONERS
In the 1950s and 1960s, government jobs were among the few acceptable job occupations for
people from respectable households. Changing technology and globalisation have changed
that with unconventional income opportunities now presenting themselves to Indians. Some
pensioners have sought and enjoyed success in information technology-related endeavours
whilst others have put their considerable English language skills to good use in service
industries. Pensioners have been the hardest hit section of the population. With declining
interest rates, they have had to play a more active role in financial management. Some of
22. them are even trying to keep abreast of current happenings and learning how to use a
computer or access the Internet.
There food preferences are shaped by their health conditions and they stick to their preferred
food items.
Independent living on the rise
From the 1980s onwards, there has been a steady migration of young adults and students to
the US, in search of better opportunities. Most have chosen to settle and make their lives in
that country. Therefore, their ageing parents have had to learn to continue to live
independently.
Retirement communities viewed as an option
Retirement homes were previously viewed negatively in India. If the elderly went there, it
meant they had no one to care for them, and were in a sense for the destitute elderly. In the
new urban India, however, well-appointed retirement communities are mushrooming, and
couples in their 60s are going there of their own volition.
While the numbers are not yet significant, a trend is likely to increase in line with growth in
the numbers of India’s elderly. It is also now an option for the middle-income and salaried
classes. In families where there is a proprietary business, or a family practice, two-to-three
generations will continue to live together.
'000
1990 1995 2000 2005 2010 2015
Male 28,085 31,905 36,292 41,109 47,286 55,928
Female 28,944 33,737 39,420 45,476 52,441 61,240
TOTAL 57,029 65,643 75,712 86,585 99,728 117,168
as % of 6.81 7.11 7.51 7.95 8.55 9.45
total
population
Pensioners (aged 60+)
Source: Euromonitor International from national statistics and UN
3.4 TARGET SEGMENTS FOR MAGGI NOODLES
3.4.1 MAGGI 2 MINUTE NOODLES
Maggi 2 Minute Instant Noodles is already associated with convenience and taste and is
currently accepted as a valid filling snack between meals. Maggi will continue to leverage its
brand equity and target the following segments for this product.
Children and Tweenagers: This is a large segment and is Maggi’s stronghold. The
age group between 4 and 14 years has largely similar tastes and is traditionally
targeted by Maggi. These segments perceive Maggi instant noodles as a welcome
change in taste from the regular Indian fare and they are fascinated by the curly
shaped noodles. For these segments innovative products also have novelty value,
however, certain dominant preferences emerge. Realizing this early, Maggi shifted
focus from the lady of the house to the end consumer i.e. children themselves ending
up as the market leader of the instant noodles segment. Early buy in of this segment
will help Maggi to sell in other segments in future.
23. Studying Age: The studying age segment though not traditionally targeted
specifically has been devouring Maggi 2 minute noodles. The proposition of
convenience of cooking as well as that of a tasty filling snack attracts this segment
which due to erratic schedules keeps missing their regular meals.
3.4.2 MAGGI CUP O NOODLES
Maggi Cup O Noodles is Maggi’s answer to Nissin’s Cup Noodles. With reduced cooking
time of ½ a minute, ease of preparation and no need of separate plates Maggi Cup O Noodles
promises to appeal to anyone in need of a quick, convenient bite. Maggi Cup O Noodles being
a premium priced product, the segment targeted should one which is ready to pay a premium
for a quality convenient food. The following segment promises to be the best bet.
Young Adults: The growing class of affluent young adults does not mind paying
higher prices for quality products. They are hard pressed for time and would pay
a premium for convenience. This segment has a good top of the mind recall of
Maggi as a brand as the current members of this group were the targets of Maggi
in the 1980’s and they retain fond memories of Maggi, a emotional bond which
can be leveraged to win them over to Maggi Cup O Noodles. This segment is
growing and has the potential of accepting Maggi as a mainstream food item as
they see instant noodles as a natural part of Indian food culture.
3.5 POSITIONING OF MAGGI
3.5.1 MAGGI 2 MINUTE NOODLES
Maggi 2 Minute Noodles will continue with its current positioning of convenience and as a
“fast to cook, good to eat” snack as this seems to be working well. To prevent Top Ramen,
the main competitor, from eating into its market share some product innovation is required as
otherwise Maggi may get stereotyped as an unexciting product.
Top Ramen is following a cost differentiation technique. To deal with this Maggi has to
position itself as a differentiated product. The market is very sensitive to taste and rejects any
flavour it dislikes with Maggi having learnt it the hard way, thus the product can not be
greatly differentiated with on basis of taste. On the other hand Maggi has to deal with the
negative perception of Maggi has of being unhealthy in an increasingly health conscious
market, a major threat in the current scenario. Both these problems can be tackled by
positioning Maggi as a snack with nutritional value. The recent launch of “Veg Atta Noodles”
and “Dal Atta Noodles” with the promise of good nutritional value ventures in this area.
Another
3.5.2 CUP O MAGGI
The main USP of Cup O Maggi is convenience without compromising on taste. Nissin’s Cup
Noodles is a huge hit with the consumers liking the concept of noodles served in a cup and the
extra convenience of not dealing with cleaning/needing plates and the lesser time required for
preparation. Cup O Maggi is targeted towards a segment that values time and convenience as
well as is getting increasingly health conscious. So Cup O Maggi with added nutrition and
wholesome components will position itself as a healthy and convenient food option that can
be had anywhere, anytime. The crux of positioning will be “Healthy Snack Anywhere,
Anytime”.
24. 4. MARKETING MIX
4.1 CONSUMER SOLUTION
The instant noodles segment of Maggi is the market leader in its segment. Available in 4
flavours, the Masala flavour is the hot favourite by a huge margin followed by Maggi
Vegetable Atta and Tomato flavour. The Maggi Dal Atta variant shows a poor response.
4.1.1 IMPROVING THE DAL ATTA VARIANT
Maggi Dal Atta variant ranks really low on taste as suggested by the Marketing Research
Survey. The existing Sambar taste doesn’t go too well with consumers even from the south
Indian market. For which we plan to replace the existing Tastemaker with a Spicier
Tastemaker to go with the traditional Spicy Indian taste.
4.1.2 NEW PRODUCT: THE CUP-O-MAGGI
Maggi is market leader in its segment but it still has no product to challenge the growing
threat posed by Cup Noodles from Top Ramen, its closest competitor. The cup noodle market
is expanding rapidly and there is a huge scope for gaining further market share by entering
this segment which is currently dominated by Top Ramen. To challenge this threat we
propose to launch a new product to directly compete in this segment with the name Cup- O –
Maggi.
Features of Cup –O – Maggi
To be made available in two flavours Masala and Chicken to cater to the overall
market palate.
The noodles will be available in a Plastic cup and just require hot water to be added to
prepare them. This is to capture the market which has a growing demand towards
convenience foods.
Dried Vegetables and Dried Chicken chunks to be made available inside the cup
The new improved spicier Tastemaker also to be added to the cup
The Market Research Survey importuned us to improve the taste and provide better health
benefits. For this purpose the improved Tastemaker has been added to Cup-O-Maggi. To cater
to the demands of the growing health conscious people nutritious veggies and chicken chunks
have also been added. These extra pieces are already available with the Maggi range of soups
and the same can be used in Cup-O-Maggi also thus dispenses the need for setting up of a
new processing factory specially for the manufacturing of food pieces.
4.1.3 PACKAGING
Major changes are required in the packaging of Maggi noodles as suggested by the Marketing
Research Survey:
Maggi noodles packets to be flimsy which require to be torn apart carefully so as to
not spill the contents.
Another issue is with the multi brick packets. Once opened they cannot be stored as it
is and the contents have to be transferred to another container.
25. To counter the problem, we plan to
Increase the thickness of the plastic sheets used in the Maggi Noodles packets to give
more strength to the packet and allow easy & safe opening of the pack
To provide a Zip-Seal facility along with the existing sealing to allow the packets to
be stored easily
4.2 CONSUMER COST
Pricing strategy for the existing variants of Maggi Noodles is based on the objective of
‘Maximising Market Share”. These variants are competitively priced. As the segment is
highly price sensitive, any price change initiates an instant price check reaction from the
competitor.
Pack Size Current Price Revised Price
MAGGI 2 Minute Noodles (gm) (Rs) (Rs)
Masala 50 5 5
100 10 10
200 20 20
400 38 36
600 54 54
800 72 72
Chicken 100 10 10
Curry 100 10 10
Tomato 100 10 10
Vegetable Atta Noodles 100 13 13
400 50 50
Vegetable Dal Atta Noodles 100 13 13
400 50 50
Maggi 2 Minute Noodles Proposed Revised Prices for existing package sizes
Reducing the price of the 400g pack of Maggi Masala is a very aggressive move to directly
attack the competitor whose 400g variant is priced at Rs 34. The effect of the downward
revision in price can be offset by the increase in sales volume.
Pricing strategy for the launch of Cup-O-Maggi is based on the objective of achieving
“Product Quality leadership”. Its segment is less price-sensitive so it will be premium priced
to target the higher end customers. Creation of a premium brand gives the company an
opportunity to provide a differential pricing and service offering to the customer thereby
creating a key differentiator.
26. CUP-O-MAGGI Pack Size (gm) Price (Rs)
Masala 80 20
Chicken 80 20
Cup O Maggi Proposed Pricing and Packaging
Product pricing is based on offering high value to our customers compared to most price
points in the market. Thus using the Competitive- Parity method, Cup-O-Maggi has been
priced at Rs 20 for an 80g pack of Masala and Chicken flavours to directly compete against
the competitor cup noodles which are also priced at Rs 20 for an 80g pack.
The pricing will be regularly revised according to the changing forces in the market
environment.
4.3 CONVENIENCE
To keep up with the growing trends in the Noodles sector, an intensive dealer-distributor
network is desired. Maggi has a well established distribution network. As of now, the strength
of our already robust distribution network could be leveraged to introduce and sell our new
product: ‘Cup-o-Maggi’ noodles, as also the improved versions of the Dal Atta variant. The
target markets of ‘Cup-o-Maggi’ are primarily present in the metropolitan cities as well as the
tier-II cities.
In addition for Cup O Maggi we propose that:
Maggi Noodles have tie-ups with Corporate Houses
Depending on the initial sales of Cup O Maggi, introduce vending machines for the
same at schools, colleges as well as corporate houses.
27. 4.4 COMMUNICATION
PROMOTION OF CUP O MAGGI
With the introduction of Cup-o-Maggi noodles, we propose to move away from the ‘Child
and Mother’ approach of Maggi. The Cup noodles would be targeted at the young single
professionals, as also the housewives, basically people who might prefer to go for a quick
meal instead of cooking a whole traditional Indian meal, specially in case of early work-day
mornings or a ‘tired’-evening quick snack (in case of professionals). An associated tagline
with the Cup-o-Maggi advertisement campaign could be: ‘Cup-o-Maggi’: ‘Healthy Snack
Anywhere, Anytime! “
SUGGESTED FUTURE CUP O MAGGI ADVERTISING CAMPAIGN
World Cup 2007 (13th March 2007 to 28th April 2007)
Families, couples, kids all enjoying their cricket with Cup O Maggi; at home, drive-in
screens. Get a cricketer to endorse Maggi noodles.
GENERAL PROMOTION
Events and Experiences: Hold the Online Maggie Recipe Challenge, wherein innovative
recipes with Maggi Noodles as a base are invited. Winning entries are compiled into an e-
cookbook which is published online.
Celebrity endorsement: Maggi has associated itself with celebrities like Bollywood actress
Priety Zinta recently. The reason being Maggi has always been the kids snack. The same is
brought out and highlighted in the charms of Preity and her bubbly and vivacious zing, with
which she portrays the brand that is Maggi.
Television Advertisements: Portraying hassled double income families, finding relief at the
end of a tiring day with a quickly conjured up bowl of Maggi 2 Minute noodles. Portray
different flavours available and focus on the health aspect of the fortified 2 minute Noodles
and the Dal and Vegetable Atta Noodles. Communicate the new improved east-to-use
packaging and the going spicy of Dal Atta Noodles.
28. 4.5 MARKETING RESEARCH
An online survey was undertaken at http://www.createsurvey.com/c/39191-OSMZz4/
The following sections deal with the results obtained on the basis of the 30 point
questionnaire put forth in the survey.
4.5.1 Maggi Noodles Performance on various attributes
1400
1200
1000
800
600
400
200
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4.5.2 Attributes on which Top ramen smoodles performs better then Maggi
noodles
Ingredients
Packaging
No. of people ranking Top
Taste Ramen smoodles better
then Maggi noodles
Price
0 20 40 60 80 100 120 140
29. 4.5.3 Attributes on which Top ramen cup noodles performs better then Maggi noodles
Ingredients
Convenience in
cooking
Packaging
Taste
0 20 40 60 80 100 120
4.5.4 Maggi Packaging size preference
800 gms
600 gms
400 gms
200 gms
100 gms
50 gms
0 0.1 0.2 0.3 0.4 0.5
30. 4.5.5 How do you like to consume your Maggi ?
11.02%
6.82%
Plain maggi
43.31%
With vegetables
With chicken
38.85%
Your secret
recipe
31. 5. FINANCIALS
5.1 BREAKEVEN ANALYSIS OF A 100 TONNE CAPACITY PLANT
OF CUP O MAGGI NOODLES
In this analysis we will look for the different costs involved in the production of Maggi cup
noodles and then comparing it with the total sales to find out the minimum efficiency at which
the plant should operate in order to have a neither loss nor profit relationship. This is done by
finding the Break-Even point of operation. If the plant operates at the efficiency higher than
that indicated by the Break-Even point than the plant operates at a profit and vice-versa.
5.1.1 BREAK-EVEN ANALYSIS
The cost involved in the production can be divided into two categories viz. fixed cost and
variable cost. They can be defined as
Fixed cost: This is the cost which is independent of the quantity of the product produced e.g.
Land &Building cost, plant & Machinery cost etc.
Variable Cost: this is the cost that varies with per unit of product produced e.g. Raw material
cost, packaging cost etc.
The break up of the various costs is shown below
1. Fixed Cost
A. Land and Building
A plot of land of about 200 sq.mtrs. with built-up area of 100 sq.mtrs. is sufficient. Land
would cost around Rs.60,000/- whereas cost of construction could be Rs.2.50 lacs. Main
production area would occupy around 50 sq.mtrs. whereas packing room and storage area
would occupy balance area.
Particulars Area (sq. mtrs.) Cost (Rs.)
Land 200 60,000
Building 100 2,50,000
TOTAL 3,10,000
B. Plant and Machinery
Marketing is the key success determinant and the production capacity has to be finalized
accordingly. Keeping in mind the financial viability, the rated production capacity is assumed
to be 100 tonnes per year with 300 working days and 2 shifts per day.
32. This would necessitate installation of following machines:
Item Qty. Price (Rs)
Extrusion Machine 1 1,00,000
Pre-conditioner 1 80,000
Mixer ( 50 kgs capacity) 1 1,00,000
Pouch Packing and Sealing 1 1,00,000
Machine
Weighing Scale 1 10,000
TOTAL 3,90,000
C. Miscellaneous Assets
Other assets like furniture and fixtures, storage facilities, working tables, SS utensils, etc.
would call for expenditure of Rs. 50,000/-.
D. Utilities
Power requirement shall be 20 HP whereas per day water requirement would be 500-550
liters. Annual expenditure at full capacity utilization will be Rs. 1,10,000/-.
2. Variable costs
A.MANPOWER REQUIREMENTS
Particulars Nos. Monthly Total Monthly
Salary (Rs) Salary (Rs)
Machine Operators 2 4,000 8,000
Skilled Workers for 2 3,000 6,000
Packing
Semi-skilled Workers 2 2,000 4,000
Helpers 2 1,000 2,000
Salesman 2 2,000 4,000
Total 24,000
B. Raw and Packing Materials
Noodles are made with the help of many ingredients with major input being wheat flour.
Other materials required are corn and rice flour, protein isolates, salt, spices, edible oil,
preservatives etc. All of them are easily available. Packing materials are equally important.
Colourful and attractive pouches shall have to be printed and outer packing will be corrugated
boxes.
33. This cost can be shown as
Product Qty. Price/Ton Value
(Tonnes) (Rs.)
Raw Material 100 70,000 70,00,000
Packing Material 100 @ Rs.20,000/ Ton of 20,00,000
Finished Goods
Total 90,00,000
C. Selling Expenses
Marketing will be a key element. Expenses shall have to be incurred on transportation,
Publicity in local media like newspapers, hoardings and TV scroll, selling commission, free
Sampling etc. A provision of 30% of sales value is made every year to take care of these
Expenses since the product is new thus more emphasis is given on this section. This expense
can be reduced once the product is well established in market.
FINAL TOTAL COST ANALYSIS
FIXED COSTS In Rs.
Land and Building 3,10,000
Plant and Machinery 3,90,000
Miscellaneous Assets 50,000
Utilities 1,10,000
TOTAL FIXED COST 8,60,000
VARIABLE COSTS Per tonne of production
Manpower Requirements 24,000
Raw and Packing Materials 90,000
Selling Expenses @ 30% of Total sales
5.1.2 ANALYTICAL BREAK-EVEN ANALYSIS
Let total production be X tones. Since the 80 gm pack of Maggi is available for Rs.20 i.e.
Rs.250/kg so lets say that Maggi Noodle is supplied to the market agent at Rs. 180/kg
So for no profit no loss equation is
860000+ (1,14,000*X) + (30/100)*X*1000*180= (180*X*1000)
860000 = (180000-114000-54000)*X
X = 71.66 tonnes
34. Final conclusion: The plant must operate at the minimum efficiency of 71.66% in order to
reach break-even analysis point i.e. not to suffer any loss.
5.1.3 GRAPHICAL BREAK-EVEN ANALYSIS
The result obtained above can be verified by plotting a graph between the total cost and
Quantity of Maggi produced. The graph is shown below.
Break Even Analysis
20
Rupees (in millions)
15
10 Variable Cost
Revenue
5
Cash Balance
0
0 20 40 60 80 100 120
-5
Sales (in tonnes)
5.2 SALES FORECAST
5.2.1 MAGGI INSTANT NOODLES
Sales by value
For the year 2007 Projected value of instant noodles category (Refer Appendix B)= Rs.
8,611.1 million
The desired market share by value = 80%
Therefore, projected value the sales need to be 80% * Rs.8611.11 = Rs. 6888.88 million.
Sales by volume
Average retail price per 100 gms of Maggi (across all SKUs) = Rs.9
Price for one thousand Tonnes of Maggi = 9 * 10^7 rupees
Projected value of sales = Rs. 6888.88 million
Therefore, Projected volume sales = (Projected Value of Sales / Price per thousand Tonnes)
= 76.5 thousand Tonnes.
For year 2007 projected category sales = 96.9 thousand Tonnes.
Therefore, volume market share of 78.95 % for the year 2007 is projected.
35. 5.2.2 PROPOSED : CUP O MAGGI NOODLES
Sales by value
For the year 2007 Projected value of cup noodles category (Refer Appendix B) = Rs. 143.1
million
The suggested target market share by value = 20%
Therefore, projected value the sales need to be 20% * Rs.143.1 = Rs. 28.62 million.
Sales by volume
Suggested retail price per 80 gms of Cup O Maggi = Rs.20
Price for one thousand Tonnes of Cup O Maggi = 20 /80* 10^9 rupees
Projected value of sales = Rs. 28.88 million
Therefore, Projected volume sales = (Projected Value of Sales / Price per thousand Tonnes)
= 0.115 thousand Tonnes.
For year 2007 projected category sales = 0.6 thousand Tonnes.
Therefore, volume market share of 19.17 % for the year 2007 is projected.
36. APPENDIX A: INDIAN INSTANT NOODLES MARKET
GROWTH GRAPHS
Indian Instant Noodles Market Retail volume growth trends
Indian Instant Noodles Market Retail value growth trends
37. APPENDIX B: NESTLE MAGGI NOODLES FORECAST
RETAIL SALES
Nestlé India Ltd Shares of Packaged Food by Subsector 2001-2004
% retail value
rsp
2001 2002 2003 2004
Instant noodles 79.3 77.3 78.1 78.5
Forecast Retail Sales of Noodles by Subsector: Value 2005-2010
Rs million
2005 2006 2007 2008 2009 2010
Instant 6,077.5 7,300.6 8,611.1 9,959.2 11,319.4 12,667.3
noodles
Cups/bowl 84.8 112.6 143.1 175.2 206.8 237.6
instant
noodles
Forecast Retail Sales of Noodles by Subsector: Volume 2005-2010
'000
tonnes
2005 2006 2007 2008 2009 2010
Instant 59.9 71.6 84.0 96.9 110.1 123.1
noodles
Cups/bowl 0.3 0.5 0.6 0.8 0.9 1.1
instant
noodles
Source: Trade press (The Economic Times, The Hindu Business Line, Financial Express, Business Standard, India
Infoline, agencyfaqs.com, Mid-day, rediff.com), Company research, Trade interviews, Euromonitor
International estimates