Presentation

on Product Strategies
(MAGGI)
BYASHWANI DADHICH

About Nestle

FMCG industry provides a wide range of consumables

.The competition among FMCG manufacturers is also
growing and as a result of this, investment in FMCG
industry is also increasing, specifically in India.

It market its products in 130 countries across the world..

Nestle put nutrition as the core of their business..

Nestle is a Swiss company founded in 1986 by Henri

Nestle

Basically the company started to meet the need of the

milk in world war I..

 Henri Nestle developed a milk-based baby food and

soon began marketing it . It was the first product of
Nestle.

The Maggi Company merged with Nestle in 1947.

Today, Maggi is a leading culinary brand and part of
the NESTLE family of fine foods and beverages.

Main focus is on health and wellness..

Good Food, Good Life to All Consumers..
July 12, 2015

What is the brand name that comes

to your mind when you hear the word

NOODLES ?

The Brand Maggi

4th Oct, 2007

Tolani Institute of Management

studies

STORY OF MAGGI 2-MINUTE NOODLES

Its a Brand of instant noodle made by Nestle India Ltd.
It was founded by the Maggi family in Switzerland in
the 19th century..
The Brand is popular in:
-Australia

-India

-Malaysia

-New Zealand

-Singapore

-South Africa

 Nestle wanted to explore the potential for

such an instant food among the Indian market.

Now it enjoys around 90% market share in

this segment.
Over the years Maggi has launched several
products under its Brand name.

The Birth in India

Nestl India Ltd.
(NIL), the Indian
subsidiary of the global
FMCG major, Nestl SA,
introduced the Maggi
brand in India in 1982,
with its launch of Maggi
2 Minute Noodles, an
instant noodles product.
initially priced at
Rs.2.10 with a close
100% margin

PRODUCT VARIANTS

Taste Bhi, Health Bhi

INITIAL STRATEGIES OF MAGGI

Maggi has faced a lot of hurdles in its journey in India
The basic problem the brand faced is the Indian Psyche.
Initially Nestle tried to position the Noodles in the
platform of convenience targeting the working women.
However, the sales of maggi was not picking up despite
of heavy Media Advertising.
To overcome this NIL conducted a research.

(CONT.)
NILs promotions positioned the noodles as a convenience
product
for mothers & as a fun product for children.
The noodles tagline , Fast to Cook, Good to Eat was also
in keeping with this positioning.
They promoted the product further by distributing free
samples, giving
gifts on return of empty packets ,etc.

Effective Tagline Communication.

PRODUCT DIFFERENTIATION
Product differentiation strategy means how a
particular product is different from others on the
basis of:
Form, Features Performance quality Convenience
Durability, Reliability, Style.
the form shape, size, physical structure of Maggi is
very attractive as it is easy to carry, comes in various
packs and sizes according to customers convenience..
The various features of Maggi noodles are first of all
its perfect taste according to the Indian touch &
spices

 performance level of Maggi is excellent there are

various other brands offered target market, but Maggi
prevailed as the winner out of them..
Quality is the main factor on which emphasizes as it is
Maggis main strength which provides Maggi an edge over
its competitors ..
Maggi products are durable as due to its preparation
these products are easy to store, have a long shelf life
and can be stored at any given temperatures which is
tested and approved.
Reliability is also one of Maggis strength, as one can
always rely on a Maggie product for a particular taste
which it guaranties..

It is an Indian customers psyche that whatever looks

good and feels good would be of good quality so Maggi
packs had been designed keeping in mind the same
concept

The 4 Ps

MAGGI-Product mix
MAGGI 2-MINUTE Noodles
MAGGI Vegetable Atta Noodles
MAGGI CUPPA MANIA
MAGGI Vegetable Multigrain Noodles

PRODUCT LEVELS: CUSTOMER VALUE

HIERARCHY
Core benefit - FAST TO COOK & GOOD
TO EAT.
Basic product benefit - good taste with
proper nutrition levels and good health.
TASTE BHI HEALTH BHI
Expected product benefit - proper and a good
package & fully packed seasoning tastemaker
& affordable prices.

MAGGI-Pricing
Maggi 2-Minute Noodles
(Chicken)
Maggi 2-Minute Noodles
(Curry)
Maggi 2-Minute Noodles
(Masala - spicy)
Maggi Rice Noodles
Maggi 2-Minute Noodles
(Veg atta)

95 gms

12.00

100 gms

13.00

100 gms

12.50

Maggi Dal Atta Noodles

100 gms

95 gms 15.00
200 gms 30.00
13.00

Nestle had extended

Maggi noodles and
seasoning to the
bottom-of-thepyramid segment by
selling
Rs. 4 and Rs. 2
packs
at select low-income
markets like
Mumbai's Dharavi.

The Economic Times, Aug12, 2010

MAGGI-PLACEMENT
The distribution network is well spread almost
everywhere in India,as it is easily available in all
kirana stores, retail store etc.

Whenever, Wherever, However

Connecting with Customers out of homeon
the move
Maggi Fun spots
Supply in other nestle kiosks
ITES/BPO employees

MAGGI: Promotion
Sales Promotion
Exchange schemes
Price-off offer
Scratch n Win Offers
Money back offer..
Sponsor school quiz..
Awareness campaign..

Advertisement

Effective
Taglines

Video

Competition Analysis

SWOT analysis
Strength
Market leader

Weakness

USP- Easy to cook & tasty

for health and calories..

Variety

Heavily dependent on one flavor ..

Perceived as made up of Maida not good

Brand loyalty
Advertising strategy..
Distribution channels
Opportunities

Threats

Availability of New segments (e.g. old

ITC, the competitor provides higher

age people)

margins to its distributors and growing

Increasing level of income of

fast.

consumers and fast life.

Top Raman has adopted the strategy of

Unexploited rural market..

reducing the price of its product.

PORTERS FIVE FORCES MODEL

NEW ENTRANTS
F
Foodles

SUPPLIERS
Distributors, Raw
F
material suppliers,
Packaging

INDUSTRIAL
RIVALRY
F
Top Ramen,
Chowmein etc

SUBSTITUTES
F fast
Chowmein,
Food, Pasta

BUYERS
Customer of Mind
F image
set, Brand

STPD ANALYSIS
SEGMENTING

TARGETING

POSITIONING

DIFFERENTIATIO
N

AGE

KIDS

FAST TO COOK,
GOOD TO EAT

TASTE

EATING HABITS

YOUTH

2-MINUTE
NOODLES

FLAVORS

LIFESTYLE

OFFICE GOING
PEOPLE

TASTE BHI,
HEALTH BHI

PACKAGING

WORKING
WOMEN

 PRODUCT LIFE CYCLE OF MAGGI

INTRODUCTION
The course of a products sales and profits over
its lifetime is called the Product Life Cycle..

Product life cycle is a concept that provides

a way to trace the stages of a products
acceptance , from its introduction (birth) to
its decline..

STAGES IN PLC
Introduction Stage..
Growth Stage..
Maturity Stage..
Decline Stage..

PLC OF MAGGI

TIME

Introduction Stage..
Sales growth tends to be slow at this stage.
Cost per customer is high.
Negative profits.
Competitors are few.
The marketing objective is to create product awareness.

.
INTRODUCTORY STAGE OF MAGGI
The product launched keeping in mind the
working women and children
No competition
It was the pioneer in the instant noodle
market.
Distribution channel
Producer -- Distributor -Retailer -- Consumer

INTRODUCTION CONT
PRICING
The initial pricing strategy was low pricing strategy
to make product affordable.
PROMOTION
Promotion focuses on awareness and information
Promoted with the tag line
BAS 2 MINUTE.
Promotion done by
- Giving gifts on empty
packets.

Growth Stage
Rapidly rising sales.
Rising profits.
Unit manufacturing cost declines.
The marketing objective is to maximize
market share.

MAGGI GROWTH STAGE

Sales increased.
50% market share.
No.1 brand.
PRICE- prices were kept normal.
PRODUCT- no any new changes

Entry of Competitor

PROMOTION-GOOD TO EAT FAST TO

COOK

MARKET PENETRATION STRATEGIES

Promotional campaigns in school.
Advertising strategies:
Focusing on kids
New product innovation according to the need of consumers:
-Veg. Atta Noodles
-Dal Atta Noodles
-Cuppa Mania
Availability in different packages:
-50 gms
-100 gms
-200 gms
-family packs(400 gms)
Conducting regular market research.

Maturity Stage

Sales are at peak.

Profits are high.
Cost per customer low.
The marketing objective is to maintain or
extend the market share.

MAGGI MATURITY STAGE

Introduced new Variety.
Price Rs. 5 Onwards.
Big Time Promotional Offers.
Slow Down In Sales.
Market Saturation.

MATURITY CONT
PRODUCT
- Maggi introduced wide variety of products like Dal
atta noodles, Chicken maggi, Maggi cuppa mania.
PRICE
- Maggi still comes in very affordable prices starting
from Rs. 5, they reduced the quantity instead of
increasing price.
DISTRIBUTION
- Distribution became more intensive. Adopted various
intensive programme for encouraging the product over
their competitors in the market.

Segmentation To Differentiation
Classic Noodles - 5 to 10 yrs..
Veg. Atta Noodles - health conscious.
Rice Mania teenagers..
Cuppa Mania - office goers.

Decline Stage
Sales started declining
Profits are at decline
Cost per customer still at low
The marketing objective is to reduce the
expenditure

MAGGI DECLINE STAGE

Sales saw a decline in 1990s.
-Formulation changed from fried base to
.
air dried base.
New product launched but failed.
-Dal atta noodles of sambur flavour.
Tough competition from TOP RAMEN.

Reintroduction of MAGGI Noodle

Reintroduced in 1999
Increased Distribution
Focus on new segments of
Society
New & Interesting TV
Commercial

CURRENT SCENARIO OF MAGGI

Leading Brand in India as well as World.
Reasonable competitive pricing.

Maggis share of instant noodles, on an all-India basis,

across urban markets, has slipped consistently between
December 09 to July 10. While Maggi instant noodles had
a 90.7% share in December 09, the share dropped to
86.5% in July 10 on an all-India basis..
Maggis market share is certain to get impacted , but add
that Nestle has the potential to expand the Rs 1,300-crore
instant noodles category which itself is growing at a rapid
15% annually

MARKET RESEARCH

Cont

MARKET SHARE

TO conclude
Here are some who leads called market leader and
there are some who follows, called follower. Maggi has
been a leader for decades and it is Maggi who educated
Indian consumer about noodles.
Of course, their market share might got depleted in
course of time, by the entry of some very big players
but Maggi will not sit silent. They will also reinforce
their activities which will ultimately benefit the
consumer.
People will definitely taste for a change, but it is very
difficult to change ones taste bud and the top of mind
game, as Maggi has become a generic name in India for
their long presence..

SUGGESTIVE PROMOTIONAL STRATEGIES

- Focus on creating distinctive image, based on twin
benefits of INSTANT and HEALTHY with
emphasis on health conscious and rural market.
- Conduct promotional campaigns at schools in small
towns with population more than 10,000.
- Strengthen the distribution channel of the rural
areas within 100 km of all the metros.
- Foray into other food products like chips,
chocolates etc under its sole brand name would not
only help in Brand extension but will also enhance
Maggis market share.
- Launch new advertisement campaign (T.V., Radio
etc) with the Brand Ambassador.

THANK
YOU