Marketing Srategy - Nestle Maggi by Nirav Khandhedia

An assignment on
Marketing Strategy
Marketing Management | Symbiosis International University

Nirav Khandhedia
Executive MBA

Sr. Subject Matter Expert | Amdocs DVCI

Question
> Select a company of your choice and prepare a list of all of the marketing
messages the company disseminates through their various communication
channels.

> Examine the company’s pubic-relations messages, their television advertising,
Internet advertising, and printed messages.

> Collect this information and try to discover if there is a commonality of
message, preference for one form of communication over another (by
frequency), or a series of nonrelated messages.

2 Nirav Khandhedia, SCIT Ex-MBA, 2012-15, A Case Study on Marketing Strategy of Nestle India Limited

Solution
> Company considered for Marketing Strategy evaluation, based on public-
relations messages, television advertising, Internet advertising, and printed
messages, is Nestle India Limited.

> Case is mainly focused on one of its booming products, Maggi.


Nestle India Limited (Maggi)
A study on Marketing Strategy

Nirav Khandhedia
Executive MBA

Contents
> Question
> Solution
> Title Page
> First steps of Maggi
> First Maggi
> Attractions of Maggi
> Maggi de Sauces
> Maggi facing Competition
> Maggi on Health Route
> Maggi in Cubes
> Maggi, now, Indian
> Maggi in Cups
> Maggi sauces in Pocket
> Maggi no more Just Mainda
> Maggi add-ons, Test Enhancer
> Maggi Moments
> Maggi Mumma
> Conclusion
5
Nirav Khandhedia, SCIT Ex-MBA, 2012-15, A Case Study on Marketing Strategy of Nestle India Limited

•Foundation of Nestle,
1866 a Swiss company

•Foundation of Maggi
1872 by Maggi Family

• Maggi merged with
1947 Nestle

First steps of • Maggi introduced in
1982 India

Maggi
> Nestle, the Swiss company founded in 1866.
> Nestle has network over 130 countries and selling 1 Billion product
everyday, today.
> Maggi, founded by Julius Maggi and Family in 1872.
> Maggi merged with Nestle in 1947.
> Maggi introduced in India in 1982, with launch of its traditional 2
minutes noodles in its Masala, Tomato and Chicken flavours.
> Maggi was able to convince its tagline “Fast to Cook, Good to Eat”
> Pioneer in organized packaged food market in India
> Positioned as ‘FUN’ food for kids
> Introduced many brand extensions

First
Maggi

> Maggi was launched in India at the time when instant food was
not a known category.
> When nestle India launched maggi in country, it used the
tagline, ‘fast to cook and good to eat’, to not only promote the
product but also to educate the ever growing aspirant
consumer about the advantages of using it.
> There was a key need for a product that provides good quality
food and at the same time was convenient.
> Maggi visualized that there should be product which take less
time to cook and consumer uses that product to get fast relief
from hunger.

7

Attractions of
Maggi

> Initially Nestle tried to position the Noodles in the platform of
convenience targeting the working women.
> Research showed that kids were the largest consumers of the
brand.
> Realizing this, NIL shifted its focus from working women to
children and their mothers and repositioned the brand towards
the kids using sales promotions and smart advertising.
> NIL aggressively promoted Maggi with taglines such as
“Mummy Bhook Lagi”, “Bas 2Minute”, “Fast to cook, good to
eat”, etc.
> Maggi brought several schemes of free samples, gifts on return
of empty packs, etc.

8



1947 Nestle
Maggi de • Maggi introduced in
1982 India
Sauces 1990s
• Maggi Introduced
Sauces

> Observing that people of all age group started liking Maggi, over the
years, NIL extended the Maggi brand to a variety of culinary products
like soups, sauces and ketchups, and cooking aids among others.
> The Indian style Tomato Chat pat Sauce, lip smacking tastes and
vibrant packaging make MAGGI Sauces true to its slogan It's different!




1947 Nestle
Maggi facing • Maggi introduced in
1982 India
Competition 1990s
Sauces
• Intro of Top Ramen
1990s affected Maggi

> During 1990s, the sales of Maggi noodles declined, and this was
attributed partly to the growing popularity of Top Ramen.




1947 Nestle
Maggi on • Maggi introduced in
1982 India
Health Route 1990s
Sauces
> Nestle changed the formulation of Maggi
noodles in 1997. • Maggi formulation
1997 changed
> However, this proved to be a mistake, as • Maggi formulation
consumers did not like the taste of new 1999 re-introduced
noodles.
> Tagline used to convince the audience was
“Taste Bhi, Health Bhi”

> In March 1999, NIL reintroduced the old
formulation of the noodles, after which the
sales revived.




1947 Nestle
Maggi in • Maggi introduced in
1982 India
Cubes 1990s
Sauces
> Maggi Intorduced 40gms packs of Maggi
Masala, Magic cubes in 2005 • Maggi formulation
1997 changed
> Available in both Veg and Non-Veg • Maggi formulation
(Chicken) variant 1999 re-introduced
• Maggi Magic Cubes
> Best for the use with Rice 2005 Introduced




1947 Nestle
Maggi, now, • Maggi introduced in
1982 India
Indian 1990s
Sauces
> NIL launched the Maggi vegetable Atta
noodles (Vegetable Atta Noodles) in 2005. • Maggi formulation
1997 changed
> An offering that exemplifies “Taste Bhi • Maggi formulation
Health Bhi”, MAGGI Vegetable Atta Noodles 1999 re-introduced
is tasty because it is loaded with everyone’s •Maggi Magic Cubes
favourite MAGGI ‘Masala’ and healthy 2005 •Maggi Dal Atta Noodle
because it now has more real vegetables
and is packed with the power of fibre.




1947 Nestle
Maggi in • Maggi introduced in
1982 India
Cups 1990s
Sauces
> A variant of Maggi, the MAGGI Cuppa
Mania, launched in 2008, is packed in • Maggi formulation
1997 changed
disposable fork to make it an even easier
snacking option. • Maggi formulation
1999 re-introduced
> In an easy to carry on-the-go Cup format, •Maggi Magic Cubes
MAGGI Cuppa Mania comes in two mouth 2005 •Maggi Dal Atta Noodle
watering variants
• Maggi Cuppa Mania
> Masala Yo! 2008

> Chilly Chow Yo!

> Cuppa mania says “Just add garam pani
and Carry on Jani”




1947 Nestle
Maggi sauces in • Maggi introduced in
1982 India
Pocket 1990s
Sauces
> In the same days of Cuppa Mania, Maggi
introduced Pichkoo, a small doy pack of • Maggi formulation
1997 changed
sauce, which makes MAGGI Tomato
ketchup affordable to a host of new • Maggi formulation
1999 re-introduced
consumers.
•Maggi Magic Cubes
> And yes, of course, It's different! 2005 •Maggi Dal Atta Noodle
•Maggi Cuppa Mania
2008 •Maggi Chipkoo




1947 Nestle
Maggi no more • Maggi introduced in
1982 India
Just Mainda 1990s
Sauces
> Giving a reason to health conscious people
to eat more Maggi, Vegetable Multi grain • Maggi formulation
1997 changed
Noodles was introduced in 2010.
• Maggi formulation
> “Mummy ke Multi gun” made mummy 1999 re-introduced
allow their children eat more Maggi with •Maggi Magic Cubes
health intact! 2005 •Maggi Dal Atta Noodle
•Maggi Cuppa Mania

• Multigrain Noodles
2010




1947 Nestle
Maggi add-ons, • Maggi introduced in
1982 India
Test Enhancer 1990s
Sauces
> The first ever fortified taste enhancer that
can be used across different cuisines in 1997 changed
India, the Maggi Masala-e-Magic.
1999 re-introduced
> It is not a simple masala, but is unique in
that it efficiently enhances the taste •Maggi Magic Cubes
inherent in the food ingredients already 2005 •Maggi Dal Atta Noodle
present. •Maggi Cuppa Mania
> It is specifically fortified with Iron, Vitamin •Multigrain Noodles
A & Iodine that are known to be 2010 •Masala-e-Magic
widespread deficiencies in India.


Maggi
Moments
> Following its “2 Minutes” tagline, Maggi invited audience to share their
Maggi (Happy) Moments in 2 Minutes stories and got a huge response.

> Maggi Invited Mummas to share their recipes around Maggi dishes.

18

Maggi
Mumma
> Maggi targeted the soft love bond of Mumma with her children and
convinced Mummas. All the efforts were made to recognize Maggi as a
food for health and taste in heart of Mumma!

19

Conclusion
Nestle’s wise decision of merger with Maggi, made it pioneer in the
packaged food industry, specifically in India.

Ease of preparing yummy dishes instantly made it the first choice and
preference for all the kids and their mummas as well.

Maggi’s consistent quality, continued innovations, skill to identify the
needs of society has allowed it to grab 90% of market share today, in
instant food products LOB.

Maggi has continuously been expanding its product line, which leaves
behind the image of so called “One product concentrated Brand” and
hence less fear of being thrown out over night.

Maggi has won the King Position by its highly focused marketing
strategy and rightly targeted customer base.

20

Marketing Srategy - Nestle Maggi by Nirav Khandhedia

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