FMCG industry, alternatively called as CPG (Consumer packaged
goods) industry primarily deals with the production, distribution
i i hn. he vis
Consumer Goods (FMCG) are those consumables which are
normally consumed by the consumers at a regular interval. Come
of the prime activities of FMCG industry are selling, marketing,
financing, purchasing, etc. The industry alco engaged in
operations, supply chain, production and general management.
Examples include non-durable goods such as personal care,
househ ve the
consumables. Though the profit margin made on FMCG producte
_ig_relatively mall they are generally sold in large quantities. The
Fast Moving Consumer Goode (FMCG) inductry in India ig on
of the largest sectors in the country and over the yearc has
“been growing at a very steady pace. The Indian FMCG industry
is largely classified as organized and unorganized Thic sector i¢
: i : ed
industry ic alco marked by a strong distribution network coupled
with increasing influx of MNCs across the entire value chain.
Thie_sector continues to remain highly Fragmented.INTRODUCTION OF NESTLE COMPANY
Nestlé_i¢ the world's leading nutrition, health and Wellness
_Compary. Their mission of ‘Good Food, Good Life” i¢_to provide
consumers with the best tasting, most nutritious choiceg in a
wi VE inn ion
from morning to night. The Nestlé Corporate Businese Principles
are at the basic of their company's culture, developed over 140
_years, which reflects the ideas of fairnece, honesty and_long-
term thinking. Nestlé can trace ite origine back to 1866, when
__the first European condensed milk factory was opened in Cham,
Gwitzerland, by the Anglo-Swice Condensed Milk Company. One
Ati g, jn he is A BY
the world's first prepared infant cereale Faring lactée’ in Vevey
__ Switzerland. ‘Good Food, Good Life” i¢ the promice they commit
to everyday, everywhere - to enhance lives, throughout life, with
good food and beverages.Business of the Nestle Nestle
_It_ig_the largest food company in the world. It _i¢ precent in
all five continents, has an annual turnover of 74.2? billion Swiss
h ie ning it A
having 231,000 employs
Company Mission
At_Nestle, they believe that research can help them to make
__better food, co that people live a better life.
Good food i¢ the primary source of good health, so they are
trying to make good food. To provide frech and pure products to
the customers, they introduced (SHE) Safety, Health and
environment policy to protect health of their employs and _ kee;
clean their currounding environment.
Company Vision
Vision of Nestle Milkpak Company i¢ to expand business
in thei ins i
As_per_ their company vision in 2020 production capacity of all
plants working in Pakistan i¢ being increased. So extension of
_Kabirwola Plant ig the example of their company vision._Ever_since ite launch in India_in 1783, thie brand has become
synonymous with noodles. The bright red and yellow coloure of.
the packet with the brilliant blue “2-minute oodles” printed on
A Hn itehen. Ove th
has grown oc a brand and positioned itself ac a “Fast to
cook! Good to Eat!” Food product. The hictory of thie brand.
traces bock to the 17th century when industrial revolution in
Switzerland created factory jobe for women, who were therefore
_left_with very little time to prepare meal. Due to thie growing
roblem Swiee Public Welfare Society asked a miller named Juliuc
foagi : ki J, :
__to prepare and easy to digest. Juliuc, the con of an Italian
immigrant come up with a formula to bring added taste to
meale in 1863. Soon after he was commicsioned by the Cwige
Public Welfare Society, he came up with two ingtant pea soups
_& a bean soup- the first launch of Maggi brand of instant
‘oods in _1882-83.Jowards the end of the century, Maggi
pany we ie a je we ul
ubes, sauces and other flavourings. H owever_in India (the
largest consumer of Maggi noodles in the world!) it was
launched in 1980 by Nestle group of companies. Maggie had
merged with Nectle fasmily in 174?.When launched it other competitor the co called home made
snacks which are till today considered healthy and hygienic.
Hence to capture the market it was positioned as a hygienic
homemade snack, a smart move. But still thic didnt work as
wm wi the wrong he workin:
women. After conducting an extensive research, the firm found
that the children were the biggect consumers of Maggi noodles.
Quickly a strategy was developed to capture the kide cegment
with various tools of alee promotion like pencils, fun books,
Maggi clube which worked wonders for it. No doubt the ade of
Moggi have chown a hungry kid soying “Mummy bhookh lagi
hai” which his on ies “¢ inute!” he is
happily eating Maggie noodles. Further the MAGGI 2-MINVTE
Noodles hac been renovated to provide 20% of the RDAI of
Coleium and Protein for the core target group building on th
nutrition proposition “Taste bhi health bhi” The company could.
have easily positioned the product ag a meal, but did not, ac a
study had chown that Indian mentality did not accept anything
h hh ic i meal. Th
gnack that could be prepared in just two minutes. The formula
clicked well and Maggi became a brand name.MARKET SEGMENTATION. TARGETING AND POSTTIONING OF
_MAGCCL
ig the process of grouping people or organizations
within _a market according to similar needs, characteristics, or
behaviours.
h ion A wan
serve the target market i¢ the group of people or organizations
whoce neede a product ic specifically designed to caticfy
i¢ the uce of marketing to enable people to form a
mental image of your product in their _minde (relative to other
vroducto)
bh 7 £ Moggi foggi
M_inute Instant Noodlec it already associated with convenience
and taste and i¢ currently occepted ac a valid filling snack
between meale. Moggi will continue to leverage ite brand equity
and target the following cegmente for thie product.
Children and Teenagers:
Thie_ic a large segment _and_i¢ Maggie stronghold. The age
__group between and 14 years has largely similar tastes and i¢_
traditionally targeted by Maggi.These segments perceive Maggi instant noodles _as_a_weleome
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
. : : ey a
focus from the lady of the house to the end consumer i.e.
children themselves e nding up ac the market leader of thi
instant noodles cegment. Early buy in of thio cegment will help
Maggi_to_sell_in other segmente in future.
The studying age segment though not
traditionally targeted specifically hac been devouring Maggi 2
minute noodles. The proposition of convenience of cooking ac weil
ac_that of a tasty filling cnack attracts thie cegment which
due_to erratic schedules keeps missing their regular meals.
The Company alco targeted
hi hi hy the one who
refrechment time to time becauce of hectic cchedule and with
would take their minimal time. So by keeping thio aspect into
consideration, the company introduce the Cuppa mania, which ic
a_type of noodle which takec lece time to cook and saticfy th
hunger _as_wellhe p ing_on
the heath aspect. They introduce Veg atta noodle for health
sei 7 hy nich th Awaren ign
to educate consumers about the benefits of health food. They
health ich health i
awareness among the masses.
7 ini wil ntin: with it |
positioning of convenience and as a “fast to cook, good to eat”
thie working weM_0ggi_ 2M inute Noodles will continue with ite current
positioning of convenience and ac _a ‘fast to cook, good to eat”
snack as thie seems to be working well.
veh nth in
market share some product innovation is required as otherwise
Maggi _moy get stereotyped ag an unexciting product. Top Ramen
_is following a cost differentiation technique.
To_deal with thig Moggi hag to position itself ac a
differentiated product. The market i¢ very sensitive to taste and.
rejects any flavour it dislikes with Maggi having learnt it the
he we he hh A ifferentic with
on basic of taste.
_On_the other hand Maggi has to deal with the negative
perception of Maggi hac of being unhealthy in an increasingly
health _conscioug market, a major threat _in the current scenario.
Both thece probleme can be tackled by positioning Maggi ac a
snack with nutritional value. The recent launch of “Veg Atta
aes ne ;
nutritional value ventures in thig area.The Company ig alco focusing om
the heath hey in hn health
conscious people. So they alco launch Health Awareness campaign
the health he
Hi health ich hh in| ionMAGGI_2_- MINUTE NOODLES:
MAGGI 2-Minute Noodles is one of the largest and most loved.
he hs in_India. Contin
__to_spread joy ac it has done for the last 25 years, your
__favorite MAGGI Noodles ic ac tasty ac ever and even provides
ntiol _nutrien ife. With th on
of Protein and Calcium MAGGI Noodles _i¢ available _in
ors — hicken, Tom. ey
——-MAGCI VEGETABLE ATTA NOODLES:
_MAGGT CUPPA_MANTA
Maggi Oats Noodle(New).
Rich Tomato
————————————
Cream of Mushroom
Hot _& Sour Vegetable
Sweet Corn Vegetable
Creamy Spinach AGGI HEALTHY SOUPS.he _quintecsential Rich Tomi he ich
_(No_Onion No Garlic)
eae ee hl
The tangy and “chatkaaredar” Iimli Pichkoo
ther delight the con: now launch a
range of products for tasty and healthy eating MUTRI-LICIOUS
PAZZIA. This quick cooking pasta can be conveniently prepared
in_just_5 minutes, atany time of the day that you want a
healthy lighi r
in ‘rom ji i rotein i
_It_has being launched in two delicious flavours ‘Masala Penne’
nd “Che ni_MAGCT BHUNA MASALA.nsidering the pric ints in the me i,_it sh
continue to position itself in the “cnack” category itself, since
be_Nestlé's most widely digtributed brand in the country.
independent channels, it hy vil where_th
company hac no presence, according to Hegde. Thic ic alco the
hi ie ve
expected to come handy. (The regular pack comes for Re 10.)ion network ic _w ad.
asily available in all retail stores.
Distribution channel - PRODUCER - DISTRIBUTOR
RET, R - CONSUMERThey promote their product very effectively through televicion.
They have applied the strategy of brand extension.
They alco sponsor various cookery shows to promote alternate
er
They also use strategy of free product samples to promote it.
Celebrity endorsements. €9. Javed Jofferi, Madhuri Dixit.
Less promoted ac compared to maggi.
No particular celebrity endorsement.
Maggi has faced lot of hurdles in ite journey in India. The
h A i¢_the_ Indian he. Tndie
Palate _i¢ mot too adventurous in terme of trying new tastes.
That may be the reason why we are still stuck with Dal So
anew product with a new taste that too from a different
culture will have difficulty in appealing to Indian market. Initially
Nestle tried to position the Noodles in the platform of
convenience targeting the working women. But it found that the
ny ickin ite_heav ic then
showed that Kido were the largest consumers of the brand.
Realizing thie, Nestle repositioned the brand towards the kids
using sales promotions and smart advertising. Now Indians are
the largest eaters of Maggi Noodles in the world.Maggi Noodles ig a marketing success story. During 177? Maggi
changed ite formulation. It wag during that time that Indo
Nisin - a Jopanece company launched ite Noodlec brand _'To
Ramen” with lot_of promotion and with ORK endorsing the
and. gai i n it he oh
in_taste of Maggi was a mistake. The consumers rejected the
new taste of Maggi. And_in 1797 Maggi relaunched Noodles
with the original taste. Nestle was ready to accept the
consumerc verdict and it paid off handsomely. Top Ramen could
not sustain the growth it had for long. Maggi's campaigns were
revolved around ite ‘convenience to make and good to eat”
oe - ce eo
well_received by the market. In 2005 Nestle made a very smart
move. It knew that although kide love noodles, the parente were
bothered about the health aspect of Nocdlec which was made of
Maida._Hence Maggi launched Maggi Atta Noodles with the
baseline” taste bhi health bhi”. Reporte cuggect that after 10
months of the launch, the product hac been well received by
indi Qh . jn i¢_an ind _th
knows the customer and willing to learn from the mistakes.STRENGTHS
in then Anytime hn
Maggi_as_noodles.
It has a huge brand loyalty.
_It_has_ developed the huge distribution channel! network over
__thousands of distributors, retailers etc. Hence Maggi ic available
in_ev hop righ mn _th tos i in
Tnnovative products for Indian taste bude such ag Maggi, Maggi
ing hicken magi, tom vor which he them is
more market as customer needs variety and they loved thoce
flavors aswell.
The_adverticing strategy for Maggi was a super hit ac their
__tagline itself was very effective and grabbed the consumer's
mind.
sac A071, a
Generic Brand to Noodles in India
Cow rural market. presence constraints
Uniform Brand for all food category
Brand ProliferationM_aggi_realiced that one of the
reasons for a low market share in Gujarat wag that most of.
gujaratic do not eat garlic and Onions co for Gujarat Maggi
has_come up with a special product which ig devoid of onions
i ican it is i. This_h
gain a completely unconquered market of Jain Noodle eaters.
Nestle
Tndia_i¢_out with a new marketing drive to mark the 25th
anniversary thie year of ite inetant Noodlee brand, Maggi Called
Me _& Meri Maggi, the campaign ic celebrating the consumer's
aE a a oe
acrose television, print and the internet, beside on-ground.
activities. Nestle has alco launched an interactive website for the
“consumers, www.meandmeri.in. The packaging has been tweaked to
accommodate the picturec of concumere whose entrieg the
Company chooses. “Tf a consumer has a story to tell about
Maggi_will_ put him or her on the Packaging, [Vor print”.“Tt i¢ no longer _an aspirational
product for any socio-economic category of consumers,” cays
Hegde. That was alco the time when Nestlé was repositioning
itself worldwide ac a health and wellness company. At the
7 ‘i oe
other such events connected to mental and physical wellbeing.
Thic_positioning gave Nestlé the platform to launch more
products _under_the Maggi brand. It already had Maggi coups,
sauces and coconut milk in the market, but given the strong
equity of the brand, Nestlé could now extend it to newer
categories. Thus, it recently came out with fried masala paste.
nm wi SiOWS — i Bhun
Moggi Cuppa Mania Instant Noodles .
The company i¢ taking no chances and
i¢_extending ite dictribution reach to cmaller towns and cities.
Maggi happens to be Nestlé's most widely distributed brand in
the country. Through independent channels,it reaches thos
vil where thi hag_n in
Thie_i¢ alco the time that Maggi’s value-for-money pack priced.
at Re 5 ic expected to come handy. (The regular pack comes
for Re 10.)They promote their product very effectively through televicion.
They have applied the strategy of brand extension.
They alco sponsor various cookery shows to promote alternate
er
They also use strategy of free product samples to promote it.
Celebrity endorsements. €9. Javed Jofferi, Madhuri Dixit.
Less promoted ac compared to maggi.
No particular celebrity endorsement.
Maggi has faced lot of hurdles in ite journey in India. The
h A i¢_the_ Indian he. Tndie
Palate _i¢ mot too adventurous in terme of trying new tastes.
That may be the reason why we are still stuck with Dal So
anew product with a new taste that too from a different
culture will have difficulty in appealing to Indian market. Initially
Nestle tried to position the Noodles in the platform of
convenience targeting the working women. But it found that the
ny ickin ite_heav ic then
showed that Kido were the largest consumers of the brand.
Realizing thie, Nestle repositioned the brand towards the kids
using sales promotions and smart advertising. Now Indians are
the largest eaters of Maggi Noodles in the world.Maggi Noodles ig a marketing success story. During 177? Maggi
changed ite formulation. It wag during that time that Indo
Nisin - a Jopanece company launched ite Noodlec brand _'To
Ramen” with lot_of promotion and with ORK endorsing the
and. gai i n it he oh
in_taste of Maggi was a mistake. The consumers rejected the
new taste of Maggi. And_in 1797 Maggi relaunched Noodles
with the original taste. Nestle was ready to accept the
consumerc verdict and it paid off handsomely. Top Ramen could
not sustain the growth it had for long. Maggi's campaigns were
revolved around ite ‘convenience to make and good to eat”
oe - ce eo
well_received by the market. In 2005 Nestle made a very smart
move. It knew that although kide love noodles, the parente were
bothered about the health aspect of Nocdlec which was made of
Maida._Hence Maggi launched Maggi Atta Noodles with the
baseline” taste bhi health bhi”. Reporte cuggect that after 10
months of the launch, the product hac been well received by
indi Qh . jn i¢_an ind _th
knows the customer and willing to learn from the mistakes.The campaign designed by Nestlé for
_Moggi's silver jubilee hopes to work on the brand's strong
consumer connect through televicion, the Internet and print. The
India’s largest food products company, hac decided not to litter
__the chy with hoardings on the occasion. Instead, the ade will
play om nostalgia. Concumers who first sampled the brand as
campaign ceeke to strengthen the
kide now trun households. Th
invited to chare their “Maggi
association. Thus, customers will be
moments” with the company. If the company likes the way you
new website called www.meandmerimaggicom ic alco in the works.
Convenience was
the unique selling proposition of Maggi when it was launched 25
years ago. For the first time, consumers got something that
was_hygienically packed and convenient to prepare. It was alco
‘adi
hn in
hn ic imeniTnstant noodles was _an entirely
new category in the country, but it was given an Indian twist.
Maggi came in four varianteMasala, chicken, cweet & sour and.
capsicum Of these, only two have survived masala_and chicken
which in_ths natin
the flagship flavour. In the days that followed, it experimented
with more variante, like a garlic-and onion free one for Gujarat.
Some of thece still exict, others were discontinued. The turning
point came in 2005, when Nestlé came out with Maggi atta
_(ubole-wheat flour) inctant noodles. All_over the country, atta _is_
considered healthier than maida_or refined flour which the
wi i a high hy
the health platform though Nectlé General Manager(food business)
__Shivani Hegde insists that the product _never_ran the danger of
being clascified junk food. It wae then that it added the
tagline, health bhi, taste bhi (health as well ac taste).— 2 ——————————————————————
The greatest opportunity for the product Maggi is their
Unexploited rural markets as co far they have mainly targeted.
cities and developed areas.
Number_of youths working nowadays are increasing rapidly, co
he new branch hy
increase production and their by salec and profits by targeting
rural markets.
__Thereased affinity of Indiang towards chinese cuicine createc new
opportunity for Maggi to improve ite tacte further and capture
large market _chare.
THREAT
Presence of regional competitor's e9 Top Raman, Ching’s noodles.
Price war strategies adopted by other brande like Top Raman.
Competitors with long hictory in product category Internationally
like, Heinz Sauce and ketchups of Heinz Indian, Top Ramen in
Noodle and
Knorr Soups.
Noodles.
less Entry Barriers in the Market segment for product
category.
ITC: strong base in Indian Market. --Substitute Product to
Product Segment.though h h iferentiate it ‘rom _oth
Noodles, Maggi Being taken as generic to Noodles _i¢ hampering
hy hi z itore have high
__to_capture the market differentiating then from being Maggi. It
mokes_othere possible product category vulnerable if lunched
inder ie i rolit ion Ke jatre
new products to capture opportunities in other cnacke and ready
1 As inl new in
strategy. By doing so, MIC could avoid the draw backs
i with thy i ition new
in competition with other competitor's brand where there i¢ no
_fit_of product with the Maggi brand.though h h iferentiate it ‘rom _oth
Noodles, Maggi Being taken as generic to Noodles _i¢ hampering
hy hi z itore have high
__to_capture the market differentiating then from being Maggi. It
mokes_othere possible product category vulnerable if lunched
inder ie i rolit ion Ke jatre
new products to capture opportunities in other cnacke and ready
1 As inl new in
strategy. By doing so, MIC could avoid the draw backs
i with thy i ition new
in competition with other competitor's brand where there i¢ no
_fit_of product with the Maggi brand.http:[/wuw.nestle.in[bran
Attp://virtualaceuracy.com/2007?/10/definition-of-marketing-mix-
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Attp://www.nestleprofescional.com/ unitedctates/en/BrandcAndProducts/P
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Attp://www.maggi.in/two_ minutes maggi_noodlec.as|
http://en.wikipedia.org/wiki/Fast-moving concumer_goods