New Product Development

Maggi

By :
Prerna Goyal
IIPM,Bangalore
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SS 09-11
 Journey
• First launch: 1882-83 , Switzerland
• By: Julius Maggi

• Maggi- Nestle merger: 1947

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 Nestle
• Nestle is a Swiss company founded in 1986 by
Henri Nestle
• It market its products in 130 countries acroos
the world
• Nestle put nutrition as the core of their
business
• Main focus is on health and wellness
• Good Food, Good Life to All Consumers
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 In India
• Nestle launched Maggi for the first time in
India in the year 1982
• Launched in different falvour:
• Masala
• Chicken
• Sweet&sour
• Capsicum
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• The Brand(Maggi) is popular in:
• India
• Australia
• Malaysia
• New Zealand
• Singapore
• South Africa

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• Nestle wanted to explore the potential for
such an instant food among the Indian market
• Nestle enjoys around 90% market share in this
segment

• India is the largest consumer of Maggi

Noodles in the world
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 Initial Scenario
• Competition:
• Ready to eat snacks segments
• Home made snacks

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 Cont.
• Positioned as: hygienic home made snack
• Targeted for: women ( wrong target group)
• Research shows: Children as the biggest
consumer
• Repositioned as:
• ‘convenience product’ for mothers &
• ‘fun’ product for kids
• Using sales promotions & smart advertising
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 Journey Cont.
• During 1977:
• Change in formulation
• Change in taste of Maggi

• In 1999:
• Relaunched with the original taste
• “ 2 minutes” proposition

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• Maggi’s first product extension: 1988
• Maggi instant soup

• In 2001:
• Maggi became core brand of Nestle

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 Cont.
• In 2005:
• Launching of “Maggi Atta noodles”
• Baseline: “Taste bhi Health bhi”
• Product well received by the Indian Consumer

• Recent launch: Rice noodles

• Maggi: A brand that knows the customer and willing to

learn from the mistakes
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 Range

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 Variants

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 SWOT
Opportun
ities
strengths
Unexp Increasi Affinity
loited ng no. of
indians
rural of
to
Distrib Innova Adver workin
ark Brand marke chinese
ution tive tising
t g youth food
t loyalt
chann falvou strateg
der y el rs y
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 Market penetration strategies
• Promotional campaign in schools
• Advertising strategy: focusing on kids
• New product innovation:
• Veg. Atta noodles
• Dal Atta noodles
• Cuppa mania

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 Cont.
• Availability in different packaging:
• 50 gm
• 100gm
• 200 gm
• Family packs(400 gm)

• Conducting regular market research

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 Hurdles faced
• Sales saw a decline in 1990’s:
• Formulation changed from fried base to air
dried base
• Competition increased in market-palce:
• Top Ramen-Indo Nissin ( Japanese co.)

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 Cont.
• New product launched in market but failed:
• Dal Atta noodles sambhar falvour

• Maggi launched some products under their brand,

but these products were un-successful
• Ketchups, Soups, Tastemakers etc.

• Latest threat to Maggi: Knorr

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 Current Scenario
world market share

4% 2%

Maggi
Top ramen
other local

94%

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 Cont.
• Leading brand in India as well as World
• Reasonable competitive pricing
• Creative interaction blogs for customers:
• www.maggi-club.in
• Focus mainly on health issues.

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 Suggestive promotion
strategies
• Focus on creating distinctive image, based on
twin benefits of “instant” & “health”
• Conduct promotion campaign in schools in
small towns
• Launch new advertising campaign with brand
ambassador

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 n k
h a
T u
Yo

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