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Maggi The Final
Maggi The Final
Maggi The Final
INDUSTRY ANALYSIS
NOODLE INDUSTRY
COMPETITORS
WHAT IS THE BRAND NAME THAT COMES TO YOUR MIND WHEN I SAY THE WORD NOODLES?????
NESTLE
Nestle S.A was founded in 1867 in Geneva, Switzerland by Henri Nestle. Basically the company started to meet the need of milk during world war 1.
NESTLE INDIA
Nestle India is a subsidiary of Nestle S.A. of Switzerland. Nestle India manufactures a variety of food products.
http://www.iloveindia.com/economy-of-india/top-50-companies/nestle-india.html
ORIGIN
Maggi is a Nestle brand of instant noodles, soups stocks, bullion, sauces a and seasoning. Maggi word- Carlo Donnati NESTLE launched maggi for the first time in the year 1982. The brand is popular in: Australia India Malasia New Zealand Singapore South Africa
CURRENT SCENARIO
Leading brand in India as well as in world. Market share till december -2009 (90.7%) - 2010- 81%
BCG MATRIX
PORTERS 5 FORCES
NEW ENTRANTS Potential threat of new entrants for maggi noodles
CONT.
Promoted by tagline BAS 2 MINUTE Giving gifts on empty packets Promotion campaigns in schools . Low pricing strategy to make product affordable NIL also introduced several other products like soups and cooking aids under maggi.
GROWTH STAGE
Maggi became the no 1 brand in instant noodles Sales Increased Accepted as ready to eat food. Prices were kept normal Profits began to rise Promoted as FAST TO COOK, GOOD TO EAT No new changes in the product
MATURITY STAGE
Constant sales Profit maximization Extending product line. Introduction of healthy and innovative products Focus on new segment of society promotional strategy for new products.
DECLINE STAGE
Sales saw decline in 1990.
Changed formulation from oil fried noodles to air dried. Large inventories of unsold items. Also faced a tough competetion from top ramen
REINTRODUCTION STAGE
In 1999 due to declining sales maggi reintroduced its original masala flavour after which the sales were regained again.
4 PS
Maggi 2 Minutes Noodle- (Masala, Chiken, Curry, TangyTomato, chatpata, Chotu) Maggi Dal Aata Noodle Maggi Mania- (Lemon Masala, Shahi Pulo) Maggi Cuppa Mania Maggi Vegetable Atta Noodle Maggi multigrainz noodles
Lower Price Strategy Minipacks for Rs.5 Inflation Effect- Reduction in volume then price Healthier product at higher price Innovative product at higher price
Wide distribution network To compete with modern retail trend- 2 new business division Malls, Target hawkers, Grocery stores. Limited penetration in rural area
Free distribution in school for promotion Giving gifts on return of empty packets Quiz & competition in schools. Sponsored Hum Log 1st TV show on Doordarshan. Effective tagline communication Maggi has recently launched MAIN AUR MERI MAGGI campaign in commensuration of 25 years The maggi club
Convince Product
Instant Food
Fun Food
Segmentation Demographic
Differentiation Product
Geographic
2-Minutes noodles
Price
Psychographic
Behavioural
Packaging
SWOT ANALYSIS
STRENGTHS
Pioneer & Market leader of instant noodles
Strong global corporate Health related brand (NIL) issues Distribution channels Innovative flavours for Indian taste buds
Increasing number of Competitive working youth pricing Affinity of Indians to Chinese food
Advertising strategy
RECOMMENDATIONS
Product: the company should work in the health part of the product. Can add new flavours. EG. Use of Soyabean flour, pulses flavour Place: the company should focus on rural market. Promotion: level of discounts is low. Should be increased through various strategies. E.g. buy 1 get 1 free. Frequency of ads should be increased, brand ambassadors. PRICE: It should be more competitively priced. Competitors should be kept in mind.
REFERENCES
http://www.business-standard.com/india/news/maggibestboth-worlds/384501/ http://colonclenz.net/news/Maggi-noodles.html http://www.moneycontrol.com/stocks/company_info/direc tors_report.php?sc_did=NI http://epaper.hindustantimes.com/ArticleText.aspx?article =15_09_2009_008_019&kword=&mode=1 http://8ate.blogspot.com/2009/03/old-ad-maggi-imhungry.html http://the--noodles.blogspot.com/2009/08/history-ofmaggi-noodles.html http://en.wikipedia.org/wiki/Maggi_noodles http://www.scribd.com/doc/22581230/Maggi http://www.iloveindia.com/economy-of-india/top-50companies/nestle-india.html