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  1. 1. Maggi takes the Health Route Presented by Tarun Arya
  2. 2. Introduction <ul><li>Maggi is a Nestlé brand of instant soups, stocks, ketchups and instant noodles. </li></ul><ul><li>It was founded by the Maggi family in Switzerland in the 19th century, and merged with Nestlé in 1947. </li></ul><ul><li>Maggi was introdused in India in 1982. </li></ul>
  3. 3. Introduction <ul><li>Nestlé India Ltd. (NIL), the Indian subsidiary of the global FMCG major, Nestlé SA, introduced the Maggi brand in India in 1982. </li></ul><ul><li>With the launch of Maggi noodles, NIL created an entirely new food category - instant noodles - in the Indian packaged food market. </li></ul>
  4. 4. Introduction <ul><li>Because of its first-mover advantage, NIL successfully managed to retain its leadership in the instant noodles category even until the early 2000s. </li></ul><ul><li>Over the years, NIL extended the Maggi brand to a variety of culinary products like soups, sauces and ketchups, and cooking aids among others. </li></ul>
  5. 5. Strategies <ul><li>It launched Maggi 2 Minute Noodles, an instant food product </li></ul><ul><li>At that time, Indian consumers were rather conservative in their food habits. </li></ul><ul><li>They preferred to eat traditional Indian dishes rather than canned or packaged food. </li></ul><ul><li>The company targeted working women. </li></ul>
  6. 6. Strategies <ul><li>However, this approach failed despite heavy media advertising. </li></ul><ul><li>To get to the root of the problem, NIL conducted a research. </li></ul><ul><li>Which revealed that it was children who liked the taste of Maggi noodles. </li></ul><ul><li>After this, NIL shifted its focus and targeted children and their mothers. </li></ul>
  7. 7. Repositioning <ul><li>NIL's promotions positioned the noodles as a 'convenience product', for mothers and as a 'fun' product for children. </li></ul><ul><li>The noodles' tagline, 'Fast to Cook Good to Eat' was also in keeping with this positioning. </li></ul><ul><li>NIL aggressively promoted Maggi noodles through distributing free samples, giving gifts on the return of empty packs, etc. </li></ul>
  8. 8. Repositioning <ul><li>NIL's advertising too played a great role in communicating the benefits of the product to target consumers. </li></ul><ul><li>Its tag lines effectively communicated the product's benefits to target consumers. 'Mummy, bhookh lagi hai' (Mom, I'm hungry), 'Bas 2-Minute,' (Only 2 minutes) </li></ul><ul><li>'Fast to Cook Good to Eat' </li></ul><ul><li>Now the positioning is “Taste Bhi Health Bhi” </li></ul>
  9. 9. Product Extension <ul><li>Maggi's first product extension was Maggi instant soups launched in 1988. </li></ul><ul><li>Maggi soups had become a pioneer in the organized packaged soup market in India. </li></ul><ul><li>In May 2006, Nestlé India Ltd. (NIL) launched a new instant noodles product called Maggi Dal Atta Noodles under the popular Maggi brand. </li></ul>
  10. 10. Product Extension <ul><li>The Dal Atta Noodles were made of whole wheat and contained pulses. </li></ul><ul><li>It was positioned as a ‘healthy’ instant noodles. </li></ul><ul><li>It provides 20% of the daily RDA of dietary fiber and protein for a child aged between 7 and 9. </li></ul><ul><li>This was the latest addition to the range of 'healthy' products. </li></ul>
  11. 11. Product Extension <ul><li>NIL offered a variety of culinary products such as instant noodles, soups, sauces and ketchups, cooking aids etc. </li></ul><ul><li>During the 1990s, the sales of Maggi noodles declined. </li></ul><ul><li>This was attributed partly to the growing popularity of Top Ramen. </li></ul><ul><li>Top Ramen was another noodle company. </li></ul>
  12. 12. Sustentions of Brand <ul><li>In order to improve sales and attract more consumers, NIL changed the formulation of Maggi noodles in 1997. </li></ul><ul><li>However, this proved to be a mistake, as consumers did not like the taste of the new noodles. </li></ul><ul><li>March 1999, NIL reintroduced the old formulation of the noodles, after which the sales revived. </li></ul>
  13. 13. Sustentions of Brand <ul><li>In the early 2000s, Maggi was the leader in the branded instant noodles segment. </li></ul><ul><li>The company faced little serious competition in this segment in early 2000. </li></ul><ul><li>NIL started introducing new 'healthy' products in accordance with the Nestlé Group's global strategy to transform itself into a health and wellness company. </li></ul>
  14. 14. Reason Behind the Brand Extension <ul><li>NIL also adopted the same strategy for the Maggi brand with the launch of the Maggi Vegetable Atta Noodles in 2005. </li></ul><ul><li>The Dal Atta Noodles were another variant of Maggi's healthy instant noodles. </li></ul><ul><li>But this time the buying behavior of Indian consumers were changed. </li></ul><ul><li>They had become more health conscious. </li></ul>
  15. 15. Success <ul><li>Now the people are taking healthy products positively. </li></ul><ul><li>The lifestyle of people have been changed. </li></ul><ul><li>The launch of new variant of Maggi became success this time. </li></ul><ul><li>The company has adopted a right strategy at a right time. </li></ul>
  16. 16. New Range of Products <ul><li>MAGGI 2-MINUTE Noodles </li></ul><ul><li>MAGGI Vegetable Atta Noodles </li></ul><ul><li>MAGGI Dal Atta Noodles </li></ul><ul><li>MAGGI Rice Noodles Mania </li></ul><ul><li>MAGGI Sauces </li></ul><ul><li>MAGGI Pizza Mazza </li></ul><ul><li>MAGGI Healthy Soups </li></ul><ul><li>MAGGI Healthy Soup- Sanjeevni </li></ul>
  17. 17. Thanks