G.

Sushma Reddy 10D21E0046

MAGGI IN INDIA
Nestl India Ltd. (NIL), the Indian subsidiary of the global FMCG major, Nestl SA, introduced the Maggi brand in India in 1982. With the launch of Maggi noodles, NIL created an entirely new food category instant noodles - in the Indian packaged food market. Being the first-mover, NIL successfully managed to retain its leadership in the instant noodles category even until the early 2000s.

In 2005, NIL started offering a range of new 'healthy' products under the Maggi
brand, in a bid to attract health-conscious consumers.

MAGGI TAKES THE HEALTH ROUTE In May 2006, Nestl India Ltd. (NIL), launched a new instant noodles product called Maggi Dal Atta Noodles (Dal Atta Noodles) under the popular Maggi brand. The Dal Atta Noodles were made of whole wheat and contained pulses, and positioned as a 'healthy instant noodles. NIL offered a variety of culinary products such as instant noodles, soups, sauces and ketchups, cooking aids (seasonings), etc., under the Maggi brand. Over the years, Maggi noodles became a popular snack food product in India.

Competitors
During 1990s, the sales of Maggi noodles declined, and this was attributed partly to the growing popularity of Top Ramen. Also they are having a strong competition with local manufacturers. Maggi is also facing competition with the chowmin.

COMPETITIVE STRATEGY

To beat the competition: NIL changed the formulation of Maggi noodles in 1997. However, this proved to be a mistake, as consumers did not like the taste of the new noodles. In March 1999, NIL reintroduced the old formulation of the noodles, after which the sales revived.

NIL also introduced several other products like soups and cooking aids
under the Maggi brand. In the early 2000s, Maggi was the leader in the branded instant noodles segment, and the company faced little serious competition in this segment.

Porters 5 force analysis

Threats of new entrants

suppliers

Industrial rivalry

buyers

substitutes

To sustain the image of the brand maggi,

Nestle had adopted the 360 degree marketing strategy : Promote themselves as a health product.

They promote the product with whom consumers can play with,
according to their taste. They also give the opportunity, of posting the recipe, to the women. They also have organized the various small events for the kids. They have spend the huge amount on the advertising of the maggi like electronic and print advertising.

Brand Extension
In order to obtain cost economies, companies leverage the strength of the existing brand to launch new variants and product lines. Nestl's Maggi is the classic example, which extended the brand Maggi to sauces, noodles, seasonings and pickle. They want to cash the image of the mother brand to make their new products successful and acceptable in the market. (e.g.-Nivea, Colgate etc.)

Customers have a relationship and emotional feeling with brand maggi.

What strategies were adopted by NIL in repositioning Maggi noodles?

Target Customer :NIL was trying to create an entirely new food category, instant noodles, in India. Initially, the company targeted working women on the premise that Maggi noodles were fast to cook and hence offered convenience. ( Wrong Approach )

To get to the root of the problem, NIL conducted a research, which

revealed that it was children who liked the taste of Maggi noodles and who were the largest consumers of the product. ( Correct Approach Repositioning Strategy )

NEW POSITIONING STRATEGY NIL shifted its focus from working women and targeted children and their mothers through its marketing. NIL's promotions positioned the noodles as a 'convenience product', for

mothers and as a 'fun' product for children.

NIL aggressively promoted Maggi noodles through several schemes like: distributing free samples. giving gifts on the return of empty packs. NIL's advertising too played a great role in communicating the benefits of the product to target consumers. placing customers photos on packet

SOME OF THE PRODUCTS :-

MAGGI Masala Noodles

MAGGI Chicken Noodles

MAGGI Thrillin Curry Noodles MAGGI Tricky Tomato Noodles MAGGI Romantic Capsica Noodles MAGGI Veg Atta Noodles MAGGI Multigrainz Noodles MAGGI CUPPA Mania Chilly Chow yo

MAGGI CUPPA Mania Masala yo