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Marketingproject Maggi 121022082750 Phpapp01
Marketingproject Maggi 121022082750 Phpapp01
The FMCG industry is volume driven and is characterised by low margins. The products
are branded and backed by marketing, heavy advertising, slick packaging and strong
distribution networks. The FMCG segment can be classified under the premium segment
and popular segment. The premium segment caters mostly to the higher/upper middle
class which is not as price sensitive apart from being brand conscious. The price sensitive
popular or mass segment consists of consumers belonging mainly to the semi-urban or
rural areas who are not particularly brand conscious. Products sold in the popular segment
have considerably lower prices than their premium counterparts. Following are the
segment-wise product details along with the major players:
FMCG companies are behind the biggest brands in the world. FMCG is all about
names, the products which everyone recognises from trips to the supermarket or from ads
on television. The brands that make up this sector are the high profile ones, the ones
everybody knows and loves. Think Coca-Cola, Dettol and Dove. This is an industry that
puts you in living rooms, kitchens and bathrooms across the globe.
The FMCG industry changes fast and is constantly evolving. It's fair to say there is
never a dull moment in FMCG. From the pace at which goods leave the shelves to the rate
of product innovation and career progression, things move quickly. And it doesn't end
there. The brands themselves are changing just as quickly. 40% of brands on the top 100
list twenty years ago have already been replaced by new names today.
FMCG companies can beat the recession. This is an industry that has proved itself very
resilient to recession – with the majority of companies in the sector weathering the
financial storm in a way that very few others have managed. Why? Well, consumers will
always need to buy the products created by FMCG companies. They may not buy big
items like refrigerators or cars in a recession, but floors still need to be cleaned, clothes
need to be laundered and aches and pains still need to be soothed.
The FMCG industry thinks bigger – and better. This is an industry that offers things on
a whole new scale. Where else could you find yourself handling $150 million accounts?
Working in FMCG gives you the chance to be a part of some global success stories and
influence the way consumers shop for products. FMCG firms are always thinking of the
next great discovery or innovation – always developing and ever-changing to meet
consumer's needs.
FMCG has a history of delivering what consumers want. Some FMCG companies'
roots are over two centuries old – driving the industry to a value of $570.1 billion. In
short, to quote Sam Walton, founder of Wal-Mart: "High expectations are the key to
everything"
They believe that leadership is about behaviour, and they recognise that trust is earned
over a long period of time by consistently delivering on their promises. Nestlé believes
that it is only possible to create long-term sustainable value for their shareholders if their
behaviour, strategies and operations also create value for the communities where they
operate, for their business partners and of course, for their consumers. They call this
'creating shared value'.
The Nestlé Corporate Business Principles are at the basis of their company’s culture,
developed over 140 years, which reflects the ideas of fairness, honesty and long-term
thinking.
Nestlé can trace its origins back to 1866, when the first European condensed milk factory
was opened in Cham, Switzerland, by the Anglo-Swiss Condensed Milk Company. One
year later, Henri Nestlé, a trained pharmacist, launched one of the world’s first prepared
infant cereals ‘Farine lactée’ in Vevey, Switzerland.
The two companies merged in 1905 to become the Nestlé we know today,
with headquarters still based in the Swiss town of Vevey. They employ around 328 000
people and have factories or operations in almost every country in the world. Nestlé sales
for 2011 were almost CHF 83.7 bn.
"Good Food, Good Life" is the promise they commit to everyday, everywhere – to
enhance lives, throughout life, with good food and beverages.
Ever since Henri Nestlé invented Farine Lactée to alleviate infant mortality, Nestlé has
been dedicated to enhancing lives. They strive to help consumers care for themselves and
their families by offering tastier and healthier choices. Their dedication to great tasting,
healthier and trusted products is tied to their respect for the environment and the people
they work with.
Nestle is the largest food company in the world. It is present in all five
continents, has an annual turnover of 74.7 billion Swiss Frances. There are 509
factories are running in 83 countries, having 231,000 employs
Company Mission
At Nestle, they believe that research can help them to make better food,
so that people live a better life.
Good food is the primary source of good health, so they are trying to
make good food. To provide fresh and pure products to the customers,
they introduced (SHE) Safety, Health and environment policy to protect
health of their employs and keep clean their surrounding environment.
Company Vision
with Nestle family in 1947. When launched it had to face a stiff competition
from the ready to eat snack segments like biscuits, wafers etc. Also it had
other competitor the so called home made snacks which are till today
positioned as a hygienic home made snack, a smart move. But still this
didn’t work, as it was targeted towards the wrong target group, the working
women. After conducting an extensive research, the firm found that the
was developed to capture the kids segment with various tools of sales
promotion like pencils, fun books, Maggi clubs which worked wonders for it.
No doubt the ads of Maggi have shown a hungry kid saying “Mummy
bhookh lagi hai” to which his mom replies “Bas do minute!” and soon he is
happily eating Maggie noodles.
Further the MAGGI 2-MINUTE Noodles has been renovated to provide 20%
of the RDA1 of Calcium and Protein for the core target group building on
the nutrition proposition “Taste bhi health bhi”. The company could have
easily positioned the product as a meal, but did not, as a study had shown
that Indian mentality did not accept anything other than rice or roti as
meal. They made it a easy to cook snack that could be prepared in just two
minutes. The formula clicked well and Maggi became a brand name.
Nestle is a well-known company all over the world and Pakistan. The company
basically deals in food products as their logo says “Good Food, Good Life”.
The width of a product mix refers to how many different product lines the company
carries.
The length of a product mix refers to the total number of items in the mix.
The depth of a product mix refers to how many variants are offered of each product
in the line.
Milk Products:-
Milkpak Butter
Nestle Everyday
Nestle Nido
Chocolate Drinks:-
Milo power
Milo RTD
Coffee:-
Nescafe Classic
Frost
Lactogen
Cereals
Nestle Rice
Nestle Wheat
Neslac
Culinary Products:-
Maggi Noodles
Confectionery:-
Nestle Milkpak
Polo Mint
Kitkat
Water:-
NESCAFÉ® MILANO
MAGGI Sauces
MAGGI Pichkoo
Maggi 2 Minute Instant Noodles is already associated with convenience and taste and is
currently accepted as a valid filling snack between meals. Maggi will continue to leverage
its brand equity and target the following segments for this product.
Children and Teenagers’: This is a large segment and is Maggi’s stronghold.
The age group between 4 and 14 years has largely similar tastes and is
traditionally targeted by Maggi. These segments perceive Maggi instant noodles
as a welcome change in taste from the regular Indian fare and they are fascinated
by the curly shaped noodles. For these segments innovative products also have
novelty value, however, certain dominant preferences emerge. Realizing this
early, Maggi shifted focus from the lady of the house to the end consumer i.e.
children themselves ending up as the market leader of the instant noodles
Studying Age: The studying age segment though not traditionally targeted
specifically has been devouring Maggi 2 minute noodles. The proposition of
convenience of cooking as well as that of a tasty filling snack attracts this
segment which due to erratic schedules keeps missing their regular meals.
Office Goers and working women: The Company also targeted this segment
people because they were the one who needs refreshment time to time because
of hectic schedule and with would take their minimal time. So by keeping this
aspect into consideration, the company introduce the Cuppa mania, which is a
type of noodle which takes less time to cook and satisfy the hunger as well.
Health Conscious People: The Company is also focusing on the heath aspect.
They introduce Veg atta noodle for health conscious people. So they also launch
Health Awareness campaign to educate consumers about the benefits of health
food. They also sponsor health camps, publish health information and build
awareness among the masses.
Positioning of Maggi
Maggi 2 Minute Noodles will continue with its current positioning of convenience and as
a “fast to cook, good to eat” snack as this seems to be working well.
To prevent Top Ramen, the main competitor, from eating into its market share some
product innovation is required as otherwise Maggi may get stereotyped as an unexciting
product. Top Ramen is following a cost differentiation technique.
To deal with this Maggi has to position itself as a differentiated product. The market is
very sensitive to taste and rejects any flavour it dislikes with Maggi having learnt it the
hard way, thus the product cannot be greatly differentiated with on basis of taste.
On the other hand Maggi has to deal with the negative perception of Maggi has of being
unhealthy in an increasingly health conscious market, a major threat in the current
scenario.
Both these problems can be tackled by positioning Maggi as a snack with nutritional
value. The recent launch of “Veg Atta Noodles” and “Dal Atta Noodles” with the promise
of good nutritional value ventures in this area.
D.A.V. PUBLIC SCHOOL URJANAGAR ECL Page 14
FOUR P’s OF MARKETING MIX
Marketing Mix
A mixture of several ideas and plans followed by a marketing representative to promote a
particular product or brand is called marketing mix.
The marketer’s task is to device marketing activities and assembles fully integrated
marketing programs to create, communicate, and deliver value for consumers. Marketing
activities come in all forms. McCarthy classified these activities as marketing mix tools of
four broad kinds, which he called the four Ps of marketing; product, price, place and
promotion.
Definition:
A product is anything that can be offered to the market to satisfy a want or need, including
physical goods, services, experiences, events, persons, places, properties, organizations,
information and ideas.
Nestle unleashed brand maggi in India Almost 25 years ago in 1983 with launch of its
traditional 2 minutes noodles in its masala, tomato and chicken flavours, followed by its
curry flavour some years down the line.
Maggi was launched in India at the time when instant noodle was not that well known a
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.
MAGGI 2-MINUTE Noodles is one of the largest & most loved snack food brands that
define the Instant Noodles category in India. We’ve recently launched two new flavors in
the short space of two months – Thrillin Curry & Tricky Tomato Noodles. Blending
Emotions with ingredients, the two new flavors deliver strongly on “Taste Bhi Health
Bhi”. It is now available in 5 delectable flavours: Masala, Chicken, Tricky Tomato,
Thrillin Curry & Romantic Capsica.
MAGGI, the pioneer and creator of ‘Taste Bhi Health BHi’ has introduced another great testing and
healthy variant in its popular range of MAGGI Noodles.
MAGGI Vegetable Multigrainz Noodle is made with Ragi, Corn, Jowar and Wheat. It
offers the consumer multi-‘gun’ as it is a source of Protein, Calcium and Fibre and has
added vegetables. It also provides the spicy test to their customers. The inspiration for the
product comes from the growing consumer preference for a healthier lifestyle and the deep
understanding that magi has developed about Indian food habits and culture.
PRICE
Introduction:
Price of the company’s product is considered as one of the 4 p’s of marketing. It is the
most important aspect for any company in terms of decision making as it directly affects
the sales and profit of the company.
These are the prices which are set by the company for the different flavours of MAGGI
Noodles.
PLACE
Place refers to the location where the products are available and can be sold or purchased.
Buyers can purchase products either from physical markets or from virtual markets. In a
physical market, buyers and sellers can physically meet and interact with each other
whereas in a virtual market buyers and sellers meet through internet. Thus with the ease
and options through which you make your product or service available to your customers
will have an effect on your sales volumes.
Factory Warehouse
Agent
Distributors
Wholesalers
Direct Retailers
End Consumers
But in order to strengthen the distribution, NIL should expand its market to Rural India
with products targeted to the market. Thus this can be one of the way by which they can
increase its volume of sales. So major focus should be done to this market as well.
PROMOTION
Promotion refers to the various strategies and ideas implemented by the marketers to make
the end - users aware of their brand. Promotion includes various techniques employed to
promote and make a brand popular amongst the masses.
Promotion can be through any of the following ways:
Advertising
Print media, Television, radio are effective ways to entice customers and make them
aware of the brand’s existence.
Billboards, hoardings, banners installed intelligently at strategic locations like heavy
traffic areas, crossings, railway stations, bus stands attract the passing individuals
towards a particular brand.
Taglines also increase the recall value of the brand amongst the customers.
Word of mouth
One satisfied customer brings ten more customers along with him whereas one
dissatisfied customer takes away ten more customers. That’s the importance of word of
mouth. Positive word of mouth goes a long way in promoting brands amongst the
customers.
Initial Strategies of Maggi
Maggi has faced 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. NIL's 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.
Sales promotion
The company also adopted sales promotion activity in order to achieve following
mentioned objectives.
Exchange schemes
Price-off offer
Coupons
Several initiatives were also taken by Maggi Noodles or Retailers sales promotion.
This can be as follows
Public relation
The Maggi Club - the children under 14 were invited by press advertisements and
distribution of leaflets to become a member of maggi club by sending logos cut
from 5 empty maggi wrappers. Maggi projected it as “maggi clubbers are fun
lovers” and intended to use it as reference group.
Benefits offered to maggi-clubbers are various games like Snap safari game, Cap
and mask sets, travel India game, Disney today comic. To obtain each gift the
member has to send 5 wrappers as purchase proof.
RESULTS OF PR ACTIVITY:
Displays
http://www.nestle.in/brands/pdca/Pages/MAGGICUPPAMANIA.aspx
http://virtualaccuracy.com/2007/10/definition-of-marketing-mix-product-
price-place-promotion/
http://www.managementstudyguide.com/marketing-mix.htm
http://www.maggi.in/maggi_multigrainz_noodles.aspx
http://www.maggi.in/two_minutes_maggi_noodles.aspx
http://www.maggi.in/vegetables_atta_noodles.aspx
http://www.maggi.in/cuppamania.aspx
www.maggi.in/maggi_multigrainz_noodles.aspx
www.slideshare.net/parves190/maggi-noodles-8279990
http://www.scribd.com/doc/10552265/Nestle
http://www.maggi.in/range.aspx
http://www.nestleprofessional.com/united-
states/en/BrandsAndProducts/Pages/default.aspx
http://www.maggi.in/maggi_multigrainz_noodles.aspx
http://www.maggi.in/two_minutes_maggi_noodles.aspx