MAGGI NOODLES

“Taste bhi, Health bhi”

 Preferred by whom and why??

“INSTANT FOOD” is preferred these days due to the following

reasons:

1. Emergence of industrial society i.e. metropolitan cities

2. Reduced domestic servants
3. Womenfolk taking to job
4. Emergence of nuclear families
5. Prices of raw materials
6. New products
7. Drudgery of work
8. Convenience
9. Increasing income
10. Standard of living
 INTRODUCTION
• FMCG industry provides a wide range of consumables .The competition among
FMCG manufacturers is also growing and as a result of this, investment in
FMCG industry is also increasing, specifically in India.

• Nestle is a multinational packaged food company founded and headquartered

in Vevey, Switzerland.

• It resulted from a merger in 1905 between the Anglo-Swiss Milk Company for
milk products established by the page brothers in Switzerland in 1866.

• Basically the company started to meet the need of the milk in world war I.

• Henri Nestle developed a milk-based baby food and soon began marketing it . It
was the first product of Nestle.

• The Maggi Company merged with Nestle in 1947. Today, Maggi is a leading
culinary brand and part of the NESTLE family of fine foods and beverages.
 NESTLE PRODUCT LIST
•Ma
maid g
e m i lk •Ma gi sauc
•Nestl g
•Ma gi pizz es
e cr eam g a
•Ic •Ne gi pich mazza
•Syrup s
•Ne tle iced oo
k
•Jams s
•Ne tle mun tea
•Honey al da hi s
•Ne cafe su h
c
s u r
•Candie esh and nat s c af n
e ca rise
fr
•Nestle lim milk ppu
c ci n
s o
•Nestle
What is the brand name that comes to your mind when you hear the word

“NOODLES ”?
INTRODUCTION OF MAGGI 2-MINUTE NOODLES
It’s a Brand of instant noodle
made by Nestle India Ltd.
It was founded by the Maggi family
in Switzerland in the 19th century.
Nestle launched Maggi for the first
time in India in the year 1982.
The Brand is popular in:
-Australia
-India
-Malaysia
-New Zealand
-Singapore
-South Africa
Nestle wanted to explore the
potential for such an instant food
among the Indian market.
It took several years and a lot of
money for Nestle to establish its
Noodles Brand in India.
Now it enjoys around 90% market
share in this segment.
Over the years Maggi has launched
several products under its Brand
name.
INITIAL STRATEGIES OF MAGGI
Maggi has faced a lot of hurdles in its journey in India

The basic problem the brand faced is the Indian Psyche.

Initially Nestle tried to position the Noodles in the platform of

convenience targeting the working women.

However, the sales of maggi was not picking up despite of heavy

Media Advertising.

To overcome this NIL conducted a research.

 (CONT.)

NIL’s promotions positioned the noodles as a ‘convenience product’ ,

for mothers & as a ‘fun’ product for children.

The noodle’s tagline , ’Fast to Cook, Good to Eat’ was also in keeping
with this positioning.

They promoted the product further by distributing free samples, giving

gifts on return of empty packets ,etc.

Effective Tagline Communication.

 HURDLES FACED
 Sales saw a decline in 1990’s:
-Formulation changed from Fried base to Air dried base.

 Competition increased in noodle segment:

Top Ramen- Indo Nissin (Japanese Co.)

 New product launched in market but failed:

Dal Atta Noodles Sambhar Flavor

 Maggi launched some new products under their brand, but

these products were not successful:
-Ketchups, Soups, Tastemakers, etc.
MARKET ANALYSIS
 ‘Instant Food' means simple, fast and convenient food.

 The Indian instant food market is growing at the rate of 30-

35% per annum.

 Trends Fuelling the Indian Instant Food Market:

1) Changing Demographics of the Indian Population
2) Convenience
3) Nutritional and Health Benefits
4) Urbanization
5) Growth of Organised Retail
6) Improvement in Packaging Technology
MARKET SHARE

 Maggi enjoys around 50% market share in this segment which is valued
at around 250 crores.
About 15-20 per cent of the total stock of both the leading retail stores is
instant food.
 A survey carried out by the National Council of Applied Economic
Research named Maggi the country's most valued FMCG brand.
a: Introduction
a-b: Growth
b-c: Reduction in sales
c: Re-Launch
c-d: Market re-capture
d: Introduction of new variants
COMPETITOR ANALYSIS

 The existing and potential competitors of Maggi can be categorized in

the following ways:

-Other players in instant food market

-Other substitutes consumed for snacks
-Ready to eat and processed food

 EMERGING NEW COMPETITORS:

- Value-added Dairy Products

- Health-focused Snack Foods
- Frozen Ready-to-eat Segment
- Non-vegetarian Processed Foods
 SWOT ANALYSIS
STRENGHTS:
•Market leader
•Brand loyalty
•Distribution channels
•Innovative flavors for Indian taste buds.

WEAKNESSES:
•Heavily dependent on one flavor.
•Minor distribution problems.
•Health related issues.

OPPORTUNITIES:
•Unexploited rural markets.
•Increasing number of working youth.
•Affinity of Indians to Chinese food.

THREATS:
•Strong presence of regional competitors.
•Competitive pricing(Top Ramen).
 STPD ANALYSIS

SEGMENTATION: Based on lifestyle and habits of urban families.

TARGETING: Kids , Office going people

POSITIONING: With statements such as “2-minute noodles” and

“Easy to cook, good to eat” .

DIFFERENTIATION: Taste, Flavors, Packaging.

 (CONT.)
SEGMENTING TARGETING POSITIONING DIFFERENTIATION

AGE KIDS FAST TO COOK, GOOD TASTE

TO EAT

EATING HABITS YOUTH 2-MINUTE NOODLES FLAVORS

LIFESTYLE OF OFFICE GOING PEOPLE TASTE BHI, HEALTH PACKAGING

BHI

WORKING WOMEN
 MICHAEL PORTER’S FIVE FORCES MODEL
NEW
ENTRANTS
No potential
F
threat of new
entrants for
maggi noodles.

SUPPLIERS
INDUSTRIAL RIVALRY BUYERS
Distributors, Raw
materialFsuppliers, Top Ramen,
F CustomerF of Mind
Packaging Chowmein etc set, Brand image

SUBSTITUTES
Chowmein,
F fast
Food, Pasta
 MARKET PENETRATION STRATEGIES
 Promotional campaigns in school.

Advertising strategies:
Focusing on kids

 New product innovation according

to the need of consumers:
-Veg. Atta Noodles
-Dal Atta Noodles
-Cuppa Mania

Availability in different packages:

-50 gms
-100 gms
-200 gms
-family packs(400 gms)

Conducting regular market research.

 CURRENT SCENARIO OF MAGGI

Leading Brand in India as well as World.

Reasonable competitive pricing.

Creative interaction blogs for customers:

www.maggi-club.in

Focus mainly on health benefits.

SUGGESTIVE PROMOTIONAL STRATEGIES
- Focus on creating distinctive image, based on twin benefits of
“INSTANT” and “HEALTHY” with emphasis on health conscious and
rural market.

- Conduct promotional campaigns at schools in small towns with

population more than 10,000.

- Strengthen the distribution channel of the rural areas within 100 km of

all the metros.

- Foray into other food products like chips, chocolates etc under its sole
brand name would not only help in Brand extension but will also
enhance Maggi’s market share.

- Launch new advertisement campaign (T.V., Radio etc) with the Brand
Ambassador.
 THANKING YOU
U N J A N I
AMITA P E JA
I TI J U N
AAKR
IT A BE R I
ANK A
C H A W L
EKTA T R I
KH A
GARIMA A U D HARY
R A V CH
GAU R MA
V S H A
GAURA