Nestle India is a subsidiary of Nestle Switzerland. Nestle India markets products like Maggi noodles, which dominate the instant noodles category in India with a 90% market share. Maggi noodles have grown exponentially over the decades to become India's largest food brand. Nestle ensures Maggi's success through product innovation, effective marketing campaigns targeting children, and adapting to local tastes in India.

1. Submitted by :-
Group 5
 Advait Gautam Bhobe
 Debjani Barua
 Deepinder Singh
 Nash Ian Rodricks
 Sagar Bhisham Darira
 Sudipto Halder

2.  Nestlé India is a subsidiary of Nestle Switzerland headed by Peter Brabeck-
Letmathe.
 Nestlé India provides consumers 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 90%.
 Evidence to Nestlé's domination of sales of plain noodles is the fact that India
accounts for the highest sales for the company for its instant noodles brand Maggi,
among all its global offices.
 With seven factories and a large number of co-packers, it has grown into India‟s
largest food company. The biggest brand in Nestle‟s portfolio is Maggi (it overtook
Nescafe about ten years ago).

3. *Initially when it was launched
in India it was targeted Nestle was founded in *Nestles Maggi noodles is the top
towards wrong target group: *Even though it has been brand in the instant noodles
working women. nearly three decades, the 1866 by Henri Nestle. segment of India which has grown
*After conducting research brand has not faced any Nestle markets its to an estimated Rs200 crore &
serious competition. contributes to around 10% of
they found out the biggest products in 130 countries Nestle India‟s top line. *Maggi has
consumer segment was the *Instead, in all these years, & sells over a billion been the pioneer in this segment
kids. Maggi has grown products each day. of market .
*The target group later on exponentially to become a *There was a need for a product
increased and included youth. generic brand
The main consideration that would provide quality food
of Nestle is Good Food, and also was easy to cook. Nestle
*This group usually comes *The competitors of Maggi
under middle class and Good life to all recognized this and introduced
are Top Ramen, Wai-Wai consumers. Their priority Maggi, a product which would
upwards residing in urban, Noodles, Sunfeast pasta take less time and to cook and
semi-urban and also rural is nutrition, health and consumer uses it to get fast relief
noodles.
areas. wellness. from hunger.

4. • Very recent Maggi had concentrated only on the urban India
Rural • They never tried to exploit the rural India which covers a major part of Indian population.
India:
• Their main drawback is that they rely heavily on one flavour only.
• Having 85 % of the market share they can still easily take the risk and try on various flavours but keeping the
Variety in current flavours in market.
taste
• Their star product has no nutritional values and since children are the major target of their product they
should come up with products that have nutrients.
Health: • They have come up with Maggi Vegetable Atta noodles but more products should be launched.
• India‟s huge plus point is its population.
• Major part of the population is youth.
Population • Maggi can use the unemployed youth of India to increase their production which they can sell in rural India.
•Various colleges have stalls where they sell Maggi.
• So schools should be their major target where they can sell their product as Maggi being already popular among the
kids of India.
Schools •This will solve the age old problem of the parents of preparing tiffin for the school going kids.

5. •Region: Urban, semi-urban,
rural (recent)
•Occupation: Working
Demographics: professionals, self-employed,
students
•Social class: Middle class and
upwards
•Occasions: Regular and
everyday user – Urban.
•Depending on the temporal
aspects of consumer‟s
Behavioural: life(time of day, week, month
and year) – Rural
•Usage rate: Heavy user-urban,
light-rural, medium-semi-
urban

6. STARS
QUESTION MARK
Maggi Veg Atta Noodles
Maggi Pasta Maggi Chicken
Maggi Sauces
DOG
CASH COW
Maggi Tomato, Curry
Maggi Masala Flavour
Flavours

7. Porters 5 Forces
New entrants
No potential
threats of
new entrants
Suppliers Industrial
Rivalry Buyers
Distributors Customer
and raw Top Ramen, Mindset
material Sun Feast Brand image
suppliers Pasta Treat
Substitutes
Chowmein,
fast food,
pasta, home
cooked snacks

8. Conducting promotional campaigns in schools is one of their main marketing activities.
• Advertising strategies: The focus of the advertisements is on the children as they are their
major consumers
Availability in different pack sizes: Packing is the biggest plus point of Maggi market
penetration. They have the product available in all sizes to tap the categories of consumers
• There is a good innovation present in the products. Maggi 2 minutes noodles, Cup-o-
Maggi, Atta noodles etc. are the different forms of the same product available in market.

9. Product Packaging
Maggi has come up with various products Maggi is packed in the yellow packets. The tip
according to the needs of consumers. Some of of the packet is zipped so that the contents
them became very popular and some of them can easily be spilled without wasting it. It has
were total failure solved the problem of storage
Marketing Mix
Promotion Place:
Distributing free samples.
Nestle Maggi Noodles is famous not only in
Giving gifts on return of empty packets.
Dry sampling-distributing Maggi packets urban areas but also in rural areas. It is rightly
Wet sampling - distributing cooked Maggi.
available at number of retail shops and malls
Availability in different packages 50gm,100gm,200gm,etc..
and so that consumers can easily purchase the
Effective Tagline Communication.
product without much efforts.

10.  For review the revenue and sales, and consumer feedback is taken into consideration.
 Revenue and Sales:
 Maggi is NIL‟s largest brand (Nescafe was the largest until mid-1990‟s) with sales (gross) of 2154.5
crore (FY11). It includes the sales of instant noodles and pasta cooking aids, soups and sauces.
Enjoying virtual monopoly in the segment until FY10, NIL revenues from the segment have grown
at a CAGR of 26.3% (CY04-11) backed by volume growth of 20.5% and price growth of 4.8%.
Expected growth (CAGR CY11-13E) of Maggi is 20.5% (volume growth of 17%).
 Consumer Feedback:

11.  Contingency theory is a behavioural theory that claims that there
is no single best way to design organizational structures and
contingency plan is a plan designed to take a possible future
event or circumstance into account.
 The point is to design an organizational structure that can handle
uncertainties in the environment effectively and efficiently.
 Some important contingencies for companies are listed below:
1. Technology
2. Suppliers and distributors
3. Consumer interest groups
4. Customers and competitors
5. Government
6. Unions
 Maggi diversifies its products and its noodles not only to one
geographical constraint but to many different areas according to
the demand of the consumers.

12. For example:
 Top Ramen brand of instant noodles entered the market with the
slogan “Don‟t be a noodle, be a smoodle”, but by then maggi noodles
had appropriated the convenience aspect of instant noodles through a
combination of clever sub branding of „2 minute noodles‟, and well-
pitched advertising with the new slogan of “bhook lagi … bas do
minute”, to beat its competitor Top ramen.
 Maggi conducts test marketing before launching new product
distinctive from its competitors and strengthens its distribution
channels in the rural areas.
 Maggi designed its product according to the people of Gujarat which
is devoid of garlic and onions and named it as „Jain Maggi‟.
 We can see that Maggi makes or design its brands according to the
taste and preferences of the consumers which helps them to tackle
the uncertainties in an efficient way.

13.  The processing in India is at Nascent stage. Traditionally, Indians
believed that its better to consume fresh food than frozen food
but trend is changing as new fast food generation is emerging
slowly.
 Nestle‟s Maggi is a great example for fast food. Riding on the
success of the brand, Maggi has come up with number of products
like sauces, ketchups, soups, tastemakers etc in mid 1990s.
 After few years Nestle‟s Maggi had lost almost its position in the
minds of Indian consumers mainly due to its taste in end 1990s.
 But Maggi came up strongly as it changed its formulation of its
tastemakers & packaging which increased its sales as years
passed by.

14.  http://www.nestle.in/brands/pdca/Pages/PreparedDishes
AndCookingAids.aspx
 http://en.wikipedia.org/wiki/Maggi
 http://www.maggi.in/range.aspx
 http://articles.economictimes.indiatimes.com/2010-08-
30/news/27597085_1_noodles-maggi-hul-and-gsk
 Casestudy.co.in/wp-content/…/Maggi-Brand-in-India-Case-
Study.doc
 http://www.business-standard.com/india/news/smart-
marketing-competitive-pricing-/468400/