MARKETING MIX OF MAGGI

“Marketing mix” refers to a business foundation model whose main focus is

4Ps which denotes the product, price, place and promotion.
It is a collection of marketing techniques that a company uses to meet its
marketing objectives in the target market. It covers marketing and business
strategies around the business as a whole.
Let’s learn the marketing mix of Maggi

1. Product Strategy
Maggi is a leading food brand from Nestlé. It has a variety of products and has
a different range for each country. Consumers also buy their products as they
are low priced and affordable for almost everyone.
It has brought innumerable products to the market according to the needs and
tastes of its consumers. Its products are majorly categorized into noodles,
soups and seasonings. These products have exceeded people’s expectations
and became their absolute favourite.
Through attractive graphics, Maggi’s label helps to promote the product. Their
labelled products information includes the logo, weight of each package,
product ingredients, expiry date, cooking instructions, consumer services line,
manufacturer’s information and nutritional information.
Maggi introduced “money saver multi-packs” in the form of 2-in-1 packs and 4-
in-1 packs. They contain a service that lets the consumers try their products to
get feedback from consumers of the products. [1]

Figure 1
The products that have surpassed the expectations of the people and have
become a hit in the minds of the consumer’s are-

 Maggi 2 Minute Noodles- The flagship product in the Maggi

umbrella brand, this product is available in five flavours that are
Tricky Tomato, Chicken, Masala, Romantic Capsica and Thrillian
Curry.
 Maggi Vegetable Multigrainz Noodles is a product that has Fiber,
Calcium, protein and added vegetables.
 Maggi Vegetable Atta Noodles is made from wheat flour that has
fiber content and added vegetables.
 Maggi Cuppa Mania is available in an easy cup format with two
variants Chilly Chow Yo and Masala Yo
 Maggi Oats Noodles is an innovative, healthy and delicious dish
that is made from Wholegrain Oats.
 Maggi Sauces
 Maggi Pichkoo
 Maggi Pazzta
 Maggi Healthy Soups
 Maggi Magic Cubes
 Maggi Coconut Milk Powder
 Maggi Masala -ae- Magic
 Maggi Bhuna Masala
 Maggi Pasta
 Maggi Pizza Sauce [2]
2. Price Strategy
Maggi uses cost-based pricing strategies so that it can enter different markets
around the world. It shows that competition and cost are the two main factors
for its marketing mix pricing strategy. It has a clear-cut policy about pricing and
has kept the policy low since the early years as Nestlé tries to capture
maximum market share with low price and high quality.
To keep up with the changing economic
times, Maggi has reduced the amount
instead of price. In addition, Maggi offers
packets of different sizes at different prices
for middle and low-income customers so
that everyone can buy according to their
budget.
Pricing strategy for the Figure 2 [3]
existing variants of
products based on the objective of “Maximizing Market Share”. These
variants are competitively priced. Since it is extremely price-sensitive, any price
change triggers an instant price check response from the competitor. Nestlé
tried to survive if they were afflicted by intense competition. They tried to
cover variable costs and some fixed costs to remain in the industry.
It adjusts prices by using promotional pricing techniques. For example, they
offer ‘Buy One Get One Free’ during the mega sales season.
Furthermore, Nestlé also implies segmented pricing. For the different locations
and different flavours, the price sets of Maggi products are different. [1]

3. Place and Distribution Strategy

Maggi’s products are widely available due to Nestlé’s strong presence. It runs
the chain of distribution systems from Distributor to Retailer to Consumer so
that the product is distributed properly.
1. Nestlé – The company has decentralized the production process where
each plant is responsible for its production. It follows a two-fold path for
distribution. In the first, the product is available to every local store, and
 in the second where the stock is available for every mall and shopping
centre.
2. Distributor – The company offers its distributors a clear-cut margin
which is 6%. In this scheme, the distributor pays the company in advance
but provides the products to the credit of the retailers.
3. Retailer – The retailer in turn gets a 15% margin on promotional
products and a 10% margin on normal products.

Figure 3 [3]

The key component of its marketing mix is its distribution. Maggi products are
taken directly from the factory which is operated individually at carrying and
forwarding agencies who later store large warehouses there and deliver to the
wholesalers according to the quantity as per their demand. These quantities
are then distributed to retailers or the end customer through hypermarkets,
other small businesses. Retailers are convenience stores or local supermarkets.
Therefore, it has achieved the top position everywhere be it rural or urban
markets. It can be found even in an unfamiliar alley. This single factor –
distribution, has been the backbone for product success. [1]

4. Promotion and Advertising Strategy

When the parent company Nestlé decided to launch Maggi in India, they used
their advertising as a major promotional strategy to create awareness and
recall the brand. Initially, it focused on children and working women who have
very little time to prepare meals. They also gave toys and utensils along with
packets of noodles as gifts, which created an attraction for customers.
  Sales Promotion
Dry sampling and wet sampling are some strategies everyone can see in the
supermarket. Promoters always distribute packets of Maggi noodles both dried
and wet samples (cooked noodles) to the consumer. From the Nestlé webpage,
consumers can get items that are promoted in certain months.

 Advertising
Maggi advertised on children’s channels and mainstream
television programs. The tagline “2 Minute Noodles” is
known as the smartest tagline in the advertising industry
and is still very popular among consumers.

Figure 4 [3]

To attract customers, it has announced several

offers and schemes over the years. Such as
funny books, free Maggi products, scratch &
win coupons, discounts & cashback offers.

Figure 5 [3]

On its 25th anniversary, it began promoting voice over to create a nostalgic

feeling among customers about their journey with Maggi. It has also used the
“Miss You Maggi” advertisement campaign to get back lost customers after
the Maggi ban in India. It also uses many celebrities for brand endorsements
like Amitabh Bachchan and Madhuri Dixit.

Figure 6 [3] Figure 7 [3]

You will find the Maggi advertisement heavier when bringing new products to
market. However, from time to time, it also advertises product redesign.
  Public Relations
Public relations is also done by Maggi
through organizing some innovative
campaigns. For illustration, the campaigns of
“Remembering your good old days with
Maggi” and “Main Aur Meri Maggi”
campaigns were held by the company to
celebrate 25 years of the brand and to
Figure 8 [3]
empower the connection of consumers
with the brand through an emotional touch. [1]

CONCLUSION
Maggi is a successful company that has nailed its product offerings in both
quality and variety. It has embarked on a journey to help people of all walks of
life with the main target of children and working women. They offer affordable
prices so that everyone can buy their products. Its mission is to become an
inspirational growth partner providing creative, branded food and beverage
solutions that enable operators to innovate and delight consumers and
its vision is to consistently market and sell high-quality food to meet
customers’ daily needs.

REFERENCES
[1] "IIDE corporation," [Online]. Available: https://iide.co/wp-content/uploads/2021/09/image3-
6.jpg.

[2] "Marketing91," [Online]. Available: https://www.marketing91.com/.

[3] "Google," [Online]. Available: https://www.google.com/webhp?authuser=1.