Managing Marketing Programs Project Report

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SUBMITTED TO: Ms. Shruti

SUBMITTED BY: Kunal Kothari PGP20102158

Table of content -

Particular

Page Number

Introduction

Advertising and sales promotion tools

Advertising agency format, size and services

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Consumers

Source message and channel factors

Advertising objective and budget

9 9

Creative aspect

Media strategies

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Social and ethical issues

Learnings and Suggestions

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Bibliography

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Introduction
MAGGI Maggi is an over 100-year-old Nestl brand of instant soups, stocks, bouillons, ketchups, sauces, seasonings and instant noodles. The original company came into existence in 1872 in Switzerland, when Julius Maggi took over his father's mill. It quickly became a pioneer of industrial food production, aiming at the improvement of the nutrition of worker families. Over time the scope of Maggi has been extended from a predominantly dehydrated cooking aid brand towards a general savory food brand including many types of ready meals and also frozen food. This is in line with the fact that people all over the world are cooking less and less from scratch. There is a wide range of Maggi products marketed worldwide in several countries. These include dehydrated bouillon, granulated seasoning, soups, recipe mixes, snacks, frozen foods, etc. In 1863, Julius Maggi developed a formula for bring added taste to meals, which later became lead to the beginning of Maggi and convenience food products. Maggi, known worldwide for innovation and quality worldwide, understands that consumers are usually under great pressure in terms of time, budget, cooking skills etc and therefore tries to establish a bond through giving ideas and advice that make providing food easier. This results in the food provider being appreciated by family and friends. Maggi has faced lot of hurdles in its journey in India. The basic problem the brand faced is the Indian Psyche. Indian Palate is not too adventurous in terms of trying new tastes. That may be the reason why we are still stuck with Idli and Sambhar. As of now, Maggi is the brand for 2-minute noodles, Chinese noodles, ketchups and sauces for Nestle. As per the latest available data, sales of Maggi 2-minute noodle in India are highest among all other Nestle products worldwide. Analysts say Nestle, which faced one of the most challenging years in the FMCG industry in 2003, has realized that unless it continuously innovates in an endeavour to provide value-for-money to consumers, the company's bottom line may be impacted in the long run.
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Advertising & sales promotion tools used by Maggi

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PRINT ADS Maggi does not focus heavily on print media during its launch since its initial target audience was mothers and kids. Some advertisements in the print media were used to highlight the convenience factor of Maggi. (As shown below)

Maggi introduced this advertisement in various magazines in 2003 to celebrate 20 years of its product in India. Maggi has recently come out with advertisements in some weekly magazines for its new Atta noodles and rice noodles variants. Maggi rice noodles mania had the highest column centimeter in print during Jan Aug 07 among the instant foods category. Growth in noodles/pasta print advertising grew by 42% in Jan-may 05 compared to Jan-may 04. Of this, Maggi vegetable Atta noodles had 92% share.

Maggis expenditure on print media is much lower compared to other media.

[Source: adex India (a division of tam media research)] SALES PROMOTION: Tools used by Maggi Noodles for Retail Sales Promotion Initiatives: Exchange schemes Price-off offer Coupons Scratch and win offer Money Back offer

Maggi was distributed free in schools and offices to promote trial Return gifts on empty packs Maggi fun book and stickers with funky animal facts. Organized Retail Sales Promotion 7% discounts on 6 piece pack (56 MRP), 5 rupee discount on 8 piece pack( 78 MRP). These are promotional schemes given by retailer itself not by NIL. Company is coming up with schemes like giving one soup pack with 8 piece pack.

In Past, the company has promotional schemes like 4 piece pack with that of 36 instead of 40.

Point of purchase advertising: Point-of-purchase advertising is any form of special display that advertises merchandise. As their main target is children, Maggi packs are usually placed in low counters, shelves or hung in twine baskets within their eye level. Because, children often influence purchases by pestering their parents to buy things on seeing them. Consumer Promotion: Sampling: Initially NIL aggressively promoted Maggi noodles through several schemes like distributing free samples, giving gifts on their return of empty packs, etc. the company has spent a huge amount of money in communicating the products benefit to the target consumers. A Look at the Display:

Large pack sizes at the top with decreasing pack sizes as going downward. Why? This is because that for a retail outlet the more value is generated large pack thus they try to project big size at convenience place.

Outer display shelves are purchased by company (Reliance mart).

Advertising agency Publicis Groupe

Type of agency Advertising Accounts won Maruti Suzuki (A-Star and Grand Vitara), Voltas India, United Biscuits (McVities), Carrefour Retail, Cleartrip.com, Futures Group (USAID), Aegis, DLF Pramerica, Nestle Corporate-South Asia Region, Apollo Tyres Accounts lost None reported Publicis Capital is now a powerhouse that combines brand management and entrepreneurship thatll challenge benchmarks and paradigms in the time to come. Most importantly, it has affected such success singularly because of its belief in being one team. This has infused enough ownership and accountability amongst senior members, while at the same time got them wedded to a common vision. A vision that lends itself into its philosophy of creating Contagious Ideas That Change The Conversation Publicis Capital has been able to demonstrate this at a national level by changing the conversation on Maggi Noodles - inarguably the biggest food brand in India. Publicis Capital created the idea of Me And My Maggi. Instead of the brand talking to the consumer, the campaign allowed the consumer to own the brand and talk about their unique stories with Maggi. The industry recognized Publicis point of view and most importantly, brand Maggi tasted its highest ever YOY volume growth, that took on a humongous base.

Consumers of Maggi (STPD)

The target consumer group is also shown from the teenager to the grandmother, which is quite vast. And with the noodle pack being shown as a replacement to Rice(that it targets to replace) the relevance of this ad is spot on.

Segmentation Age Eating Habits Lifestyle of Urban Families

Targeting Kids Youth Office Goers Working Women Health Conscious People

Positioning Fast to cook, Good to Eat 2-Minute Noodles Taste Bhi, Health Bhi

Differentiation Taste Flavors Packaging

Classic Noodles 5 10 yrs. Veg. Atta Noodles Health Conscious. Rice Mania Teenage Cuppa Mania Office goers, Working women. Mass marketing has become segmented marketing

Source message
India is a country where people are star-struck by film stars, cricketers, politicians, and brand communication messages delivered by celebrities and famous personalities generate a higher appeal, attention and recall than those executed by non-celebrities. So, NIL used Preity Zinta, a very well-known actress of Indian cinema, as their celebrity spokes person.

Advertising objective and budget

To introduce new products To attract new customers and retain the existing ones To maintain sales of seasonal products To meet the challenge of competition

With the recent Maggi Atta and Rice Noodles launch, Maggi has decided to turn to the Web for its campaign. Almost half the spending for the campaign, estimated at several million, is being devoted to online media. What seems to be even more fascinating is the launch of new flavours in collaboration with their consumers. Facebook has become a major player in the social networking market, especially since its campaign by creating pages like India ka national food MAGGI hona chahiye, Meri Maggi, I Love Maggi. On top of this innovative idea, Maggi has bought major advertising space on various sites.

Creative aspect -

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.

Some special privileges were given to regular members time to time like, discounted tickets of Appu Ghar.

Organized Maggi school quizzes and sketching. Organize Me aur Meri Maggi campaign.

Media strategies Hierarchy of Effects: Maggi ads have already crated enough awareness, now they focus on the other steps of hierarchy of effects model. The advertisement of Maggi provides information about nutrition facts and several flavors available also attract kids with colorful background and execution of ads. This ultimately results in actual purchase. Music: Music is use as a stimulus in the Maggi ads to catch customers attention through its famous jingle Just 2-minutes. This has created a strong brand recall value. Rationality: Maggi ads are always contains information about the product. It states that, the noodles can be prepared within just 2- minutes, its a healthy food which is also tasty, also price related information are communicated through the advertisements. Emotions: Maggi ads have emotional appeals as it shows, hungry child comes from out and says that he is hungry and mother says just 2-minutes and prepares Maggi noodles. Scarcity: as they offered a gift like a small toy or a Maggi Tiffin box along with purchases of 6 Maggi noodles packets. This was offered for a limited period of time. Message Strategies: Maggi follow different message strategies. They use cognitive strategies as product information is provided for the consumers on the ads. Nestle India Limited (NIL) also involves affective message strategies as they relate Maggi noodles with the emotions, like it is a fun product for kids. Execution Framework: Maggi follow different message strategies. They use cognitive strategies as product information is provided for the consumers on the ads. NIL also involve affective message strategies as they relate Maggi noodles with the emotions, like it is a fun product for kids. Dramatization: For example, in one ad, it was shown that a child, who is away from home, is writing a letter to his mother that, he is missing his mother and the noodles she
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used to cook for him. Then he smells something and look back, he saw his friends cooked Maggi noodles for him and they says, they are also missing their mom. Informative: Info about nutrition facts and famous 2-minute cooking process.

Social and ethical issues

Maggi India has always focused on long term, sustainable and profitable growth and helped communities around its factories to improve their quality of life in a similar manner. Milk storage facilities have been set up close to the farmers. Veterinary services are provided free, and medicines provided at wholesale cost. The company assists farmers in artificial insemination programs for their cattle, provides subsidy and helps them in procuring loans. Safe Drinking Water Water is a scarce resource. In India, availability of clean drinking water is a major concern for many communities. Almost 200 million people do not have access to clean drinking water. Nestl India is committed to improving the situation and believes that the first step is to create awareness in the communities around its factories. A key focus area of our Corporate initiatives is to help provide Clean Drinking Water and educate children in schools to conserve this scarce resource.

Education and Training Maggi supports initiatives to create awareness about the right to education and encourages the communities around its factories to send their children to school. Nestl India employees have developed a special play 'Let Us Go to School' for this purpose. This has been staged amongst the communities around our factories, and its recordings screened at smaller gatherings along the milk routes.

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One of the main ethical issue is that Opinions by Doctors about these foods branded as Junk Food by them and their bad effects. It is learnt that the first thing it affects is your digestive system and you are prone to develop Gastritis and Acidity.

LEARNINGS AND SUGGESTIONS

Maggi though has been able to differentiate itself from other Noodles, Maggi being taken as generic to Noodles is hampering other extended product category. Competitors have high grounds to capture the market differentiating then from being Maggi. It makes others possible product category vulnerable if lunched under Maggi. So to avoid proliferation of brand and introduce new products to capture opportunities in other snacks and ready to eat product category NIL has to introduce new branding strategy. As Indian Market is Brand conscious, other competitors are coming up with more Indianized brand of products, and as Indian being more aware of their culture and large segment being typical and conservative about their culture, there care more chances that NIL would be successful if it creates a brand close to Indian culture in wording to positioning. As India is growing, Old Indian Brands are also regaining momentum worldwide, NIL could catch the trend of market. NIL other option is acquiring products manufacturers of different products like biscuits, chips and snacks as it is very essential for its market leader position. Other companies have advantage of such products. ITC has biscuits to it, Hindustan Lever has tea to it. India is huge market where distribution advantage plays major role and economies of scale pays back. So its is important for NIL to concentrate on other ready to eat category to benefit consumers from economies of scale reflect in price.

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Bibliography

http://www.nestle.in/PreparedDishes_CookingAids.aspx?OB=3&id=31 http://www.maggi.in/ http://www.oneblogs.in/maggi/1/showtags.html http://maggidawn.com/

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