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Maggi Report

Maggi Report

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Published by Sakshi Chopra

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Published by: Sakshi Chopra on Nov 01, 2011
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About the Company

Nestlé S.A is the largest food and nutrition company in the world. Founded and headquartered in Vevey, Switzerland, Nestlé originated in a 1905 merger of the AngloSwiss Milk Company, established in 1867 by brothers George Page and Charles Page, and Farine Lactée Henri Nestlé, founded in 1866 by Henri Nestlé. The company grew significantly during the First World War and again following the Second World War, eventually expanding its offerings beyond its early condensed milk and infant formula products. Today, the company operates in 86 countries around the world, and employs over 280,000 people. The company dates to 1867, when two separate Swiss enterprises were founded that would later form the core of Nestlé. In the succeeding decades, the two competing enterprises aggressively expanded their businesses throughout Europe and the United States. In August 1867, Charles and George Page, two brothers from Lee County, Illinois, USA, established the Anglo-Swiss Condensed Milk Company in Cham. Their first British operation was opened at Chippenham, Wiltshire, in 1873.

Nestle India Limited Nestlé India is a subsidiary of Nestlé S.A. of Switzerland. With seven factories and a large number of co-packers, Nestlé India is a vibrant Company that provides consumers in India with products of global standards and is committed to long-term sustainable growth and shareholder satisfaction. The Company insists on honesty, integrity and fairness in all aspects of its business and expects the same in its relationships. This has earned it the trust and respect of every strata of society that it comes in contact with and is acknowledged amongst India's 'Most Respected Companies' and amongst the 'Top Wealth Creators of India'.

Nestle India Limited is an India-based company that is principally engaged in the food business. The food business incorporates product groups, such as milk products and nutrition, beverages, prepared dishes and cooking aids, chocolates and confectionery. The Company manufactures products under brand names, such as NESCAFE, MAGGI, MILKYBAR, MILO, KIT KAT, BAR-ONE, MILKMAID and NESTEA. It has also

Nestle India Brands Milk Products and Nutrition Beverages Prepared dishes and cooking aids Chocolates and Confectionary Brand Maggi Maggi 2-Minute Noodles Maggi Vegetable Atta Noodles Maggi Cuppa Mania Maggi Healthy Soups Maggi Masala-ae-Magic Maggi Sauces Maggi Pichkoo Maggi Pizza Mazza Maggi Magic Cubes Maggi Vegetable Multigrainz Noodles Maggi Bhunna Masala Maggi Coconut Milk Powder Maggi Pazzta Maggi Sanjeevni Cup Soup Maggi Imli Pichkoo Maggi Noodlez Maggi 2-Minute Noodles Maggi noodles is a brand of instant noodles manufactured by Nestlé. and the Philippines. Nepal.introduced products of daily consumption and use. Malaysia. Sri Lanka. Pakistan. NESTLE SLIM Milk. such as NESTLE Milk. The brand is popular in Australia. it is also known as "maggi mee" (mee is Indonesian/Malay/Hokkien for noodles). stocks. Brazil. South Africa. NESTLE Fresh 'n' Natural Dahi and NESTLE Jeera Raita. In several countries. Bangladesh. there are fried noodles . In Malaysia. and noodles. a Nestlé brand of instant soups. New Zealand. Brunei. India. Singapore. Maggi noodles are part of the Maggi family.

complaining that they want the original chicken flavour back. and 'No Trans fat'. packs of Maggi noodles were recalled by Nestle Philippines after it was said to be contaminated with salmonella. carrots. and onions has also been introduced in India. Recently. Nestlé India Ltd (NIL) offered a variety of culinary products such as instant noodles. In mid 2008. under the Maggi brand (Refer to Exhibit II for Maggi's product portfolio as of mid-2006). Maggi noodles also contain the additives E150d and E627. boiled vegetables or lemon can also be added to the noodles for a better flavor. beans. a line of rice noodles and whole wheat with pulses. the salt content has been increased by 31 percent.made from maggi noodles known as Maggi goreng. sauces and ketchups. Maggi noodles became a popular snack food product in India. Maggi noodles recently introduced a new variety of its noodles. Oriental. Whole-wheat flour based noodle variation marketed by the name "Vegetable Atta Noodles" has been introduced in India (Atta flour is used in preparing most forms of wheat based breads in India) and caters to health conscious buyers wary of the refined flour used in the regular Maggi noodles. who feed the noodles to children as an afterschool snack. and Curry flavours. Egg. instant noodles had been NIL's main product category in the culinary segment since the launch of Maggi 2 Minute Noodles (Maggi noodles) in 1982. 'Less Salt'. New Zealand supermarkets introduced replacement formulations for its Beef. A new feature is an extra sachet containing dehydrated vegetables. In the Philippines. Maggi claims the new range contains 88% less total fat and 86% less saturated fat than the average of top-three (unnamed) 2-minute-noodle competitors. Consumers have not reacted well to the new formulations. are the primary customers of the brand. Over the years. the word "Maggi" has become a common term for any brand of noodles in India. The new Maggi range also has considerably lower fat than its own previous formulation. etc. In fact. Claimed to be "2 minute noodles". This move helps the brand in India as suburban mothers. cooking aids (seasonings). seaweed. E150d is sometimes made from maize.. In fact. to cater for the health conscious like 'No MSG'. The Maggi noodle cake and seasoning is added into boiling water for two minutes and it is ready for consumption. "Maggi" has become a well-known brand for instant noodles in India and Malaysia. However. soups. . Of these.

Overcame high chance of failure Had no competition Limited distribution High marketing and production costs Fully utilized first-mover advantage . wafers etc.Product Life Cycle of Maggi 2-Minute Noodles Introduction Stage (Year 1983) Product was launched in 1983 keeping working women and children in mind Faced stiff competition from ready to eat snack segments like biscuits.

. Accepted as Ready to Eat Food Entrance of competitors Initial healthy profits Promotion emphasized brand ads. Initial pricing strategy was low to make product affordable.instant noodles .in the Indian packaged food market & targeted middle class of metro & tire-1 cities. 2. Promoted with tag line “Fast to Cook . Promoted with the tag line “Bas do Minute”. Growth Stage Increasing rate of sales Increase in potential consumer base.* Created an entirely new food category .10 with close to 100% margins. Initially priced at Rs. Good to Eat” Prices were kept normal Development costs were recovered Growing popularity of Top Ramen . another instant noodles product Maturity Stage Very short maturity stage Declining sales growth Saturated markets No new Product line Heavy promotions to dealers and consumers Profits fell as cost of production increased.Promotion focused upon awareness and information. Successfully managed to retain its leadership in the instant noodles category.

options. Company increased distribution of its products. Now Maggi brand was offered in more sizes. . another instant noodles product In order to improve sales . this proved to be a mistake. after which the sales revived. In the early 2000s. due to growing popularity of Top Ramen . NIL reintroduced the old formulation of the noodles. and the company faced little serious competition in this segment. Maggi also focused on a larger consumer base. Formulation changed from Fried base to Air Dried base. Along with children or working women. Successfully recaptured their market share and became market leaders. Maggi was the leader in the branded instant noodles segment. During the period of 1990‟s Maggi faced tough competition from Top Ramen Decline Stage During the 1990s. NIL changed the formulation of Maggi noodles in 1997. However. Re-Introduction Stage (Year 1999) In March 1999. as consumers did not like the taste of the new noodles.Reduced the quantity instead of increasing prices. 5. the sales of Maggi noodles declined. Came up with various interesting advertisement campaigns. Maturity Stage Extending product line Stylistic product changes Still came in very affordable prices starting from Rs. flavors.

Health issues and preference of traditional food habits of Indian consumer. The new product. Maggi Atta Noodles In 2005 Nestlé India launched Maggi Atta Noodles Based on consumer needs and evolving trends for more whole grain based products Wanted to offer healthy products under the Maggi brand. were the primary customers. Extensive Research and Development expertise to develop Maggi Vegetable Atta Noodles Targeted at suburban mothers. who feed the noodles to children as an afterschool snack. Went for sales promotion in schools and offices. Wanted to capitalize on strong brand recall. Competition from Top Ramen and Maggi having to deal with the negative perception of being an unhealthy item. Health Bhi”. Launch of Maggi Atta Noodles Noodles was renovated to provide 20% of the RDA of calcium and Protein for the core target group*. Positioned their product so as to get fast relief from hunger. Knorr Annapurna*. called Knorr Annapurna Soupy Snax. was priced aggressively at Rs 5 and had four variants: two chicken options and two vegetarian. Changed their advertisement campaigns to focus mainly on wellness and nutrition. . vibrant and eye-catching packaging. Built up on the nutrition proposition of “Taste Bhi.Heavy promotions to dealers and consumers In 2003 Hindustan Lever Ltd was all set to take on Nestle's best selling Maggi 2minute noodles by launching a new category of liquid snacks under its food brand. Were made available in a fresh. Maggi repositioned itself as a snack with nutritional value. in a bid to attract health conscious customers.

There is no scientific basis for any such concern about your favourite MAGGI Noodles. Price: The price of atta noodles was little more than maggi 2 minutes noodle. 2. atta noodles are not entirely made of atta. the manufacturer of MAGGI Noodles. Targeted health conscious people but Maggi Atta noodle didn‟t appeal to them. Contrary to what the mail says. False claims: In October 2008. The information in the mails is incorrect . 6. The British Advertising Standards Authority said that it was a false claim. is recognised as the leading Nutrition. Nestlé. 5. they make use of maida (wheat flour) and atta is of much smaller quantity. and is thus not suitable for vegetarians. Contrary to what the mail says. Health and Wellness company and Food Safety is non-negotiable at Nestle. So a new product with a new taste that too from a different culture will have difficulty in appealing to Indian market. 1. also the fat content was more than carbohydrates. 4.Lately launched Maggi Dal Atta Noodles Failure of Maggi Atta Noodles 1. 3. Indian consumer is not too adventurous in terms of trying new tastes. Also.pdf) YOUR FAVOURITE MAGGI NOODLES – SAFE AND DELICIOUS You might have concerns with some misleading mails that are being circulated about MAGGI Noodles.in/pdf/maggi_mail_statement. Indian psyche: The basic problem the brand faced is the Indian Psyche. Not purely vegetarian: Atta maggi Noodles also contains the additives E150d and E627. C. Lack of essential nutrients: The new maggi atta noodles lacked essential vitamins A. we DO NOT ADD MSG to MAGGI Noodles ! 2. that are trusted by generations in India. MAGGI Noodles ARE NOT COATED WITH WAX ! . Announcement made by Maggi on this Problem (Source: http://www. E627 is partly prepared from fish. Let us first correct some of the statements in the mail.nestle. Nestle mistakenly aired an advert that noodle "help to build strong muscles and bone".

We assure you that you can continue to trust your MAGGI Noodles. you need something that fits with your rushed lifestyle – a product which is tasty and healthy. MAGGI Noodles are infact a source of Protein and Calcium. MAGGI Cuppa Mania is a combination of all the above! In an easy to carry on-the-go Cup format. . Reduced cooking time of 1/2 a minute. Launched as a premium price product. This misleading mail has been floating around on the internet for years . Contrary to what the mail says. Many people have checked with us. MAGGI Vegetable Atta Noodles provide the goodness of fibre of 3 Rotis. ease of preparation and no need of separate plates. just add garam paani*to the Noodles and voila! A cupful of delicious MAGGI Cuppa Mania is ready for you to carry on jaani! Launched in March 2006. Maggi Cuppa Mania Each offering of MAGGI Noodles has been developed keeping in mind the Indian palate and what you like. MAGGI Cuppa Mania comes in two mouth watering variants – Masala Yo! And Chilly Chow Yo! Packed with real vegetables and the goodness of Calcium. multitasking is a reality. MAGGI Noodles do not contain wax in any form. is convenient to prepare and eat and also satiates your hunger. 4. MAGGI constantly uses Nestlé's global R&D expertise to innovate and renovate and develop products that provide 'Taste Bhi Health Bhi' and are safe for consumption . and with independent sources. you DO NOT NEED TO DRAIN THE WATER in which you make MAGGI Noodles. Since in today‟s fast-paced busy life. to confirm that this mail is a hoax. The method of preparation is printed on MAGGI Noodles packs and is the correct and safe way to prepare it. Is convenient to make – Only boiling water needs to be added.3. It has no scientific validity or legitimacy for MAGGI Noodles.

The crux of positioning was “Healthy snack anywhere. Analysis of Maggi Noodles BCG Matrix .Was targeted at the whole family. anytime.” Made available in two flavours. but betting specially on 18-24 year old customer base. Masala and Chicken to cater to the overall market palate. Added an improved spicier tastemaker to the cup.

STPD Analysis Segmentation Age Targeting Positioning Differentiation Kids Fast to Cook. Good to Eat Taste Eating Habits Youth Lifestyle of Urban Families Office Goers 2-mintues Noodles Taste Bhi. Health Bhi Flavors Packaging Competitors of Maggi 1) Top Ramen Advantages over Maggi Noodles • • Nearest Competitor Innovation   • • • Cup Noodles Curry Noodles Major portion of market share in cup noodles market Positioned as a easy to cook meal not snack items Target audience – (Youth 16-35 years old) .

Kerala and Tamil Nadu Launching noodles under the Knorr brand will help the company grab market share faster.\ 2) Horlicks Foodles • • Launched in the December 2009 by Glaxo Smith Kline Consumer Healthcare The brand has launched two variants of noodles   • • • • Multi-grain (4 nutritious grains like Rice.Earlier using distribution channel then changed and made their own channel.Issues • • Lack In promotional activities. Each of the two varieties comes in three different flavours. Andhra Pradesh. Variants come with a healthmaker sachet which has 9 power vitamins The main USP of Foodles is the " Health Maker“ The positioning is on the lines of 'Noodles Plus' 3) Knorr Soupy Noodles        Launched in the February 2010 by HUL Clubbed two category together that of soup + noodles First launched in Karnataka. wheat and corn) Regular variants. Distribution issues. Ragi. apart from Initial Shahrukh Khan Campaign. as Knorr has a strong brand equity Soupy Noodles attracted kids who has now the option of best of both worlds Having said that Soupy noodles is not entirely an innovation since a similar version called Curry Noodles exists in the market Knorr had a bad history of extension failures and brand name confusion unlike Maggi .

Taste bhi It‟s Different • • • NIL‟s advertising too played a great role in communicating the benefits of the product to target consumers NIL‟s promotions positioned the noodles as a „convenience product‟ for mothers and as a „fun‟ product for children.in Focus mainly on Health Benefits. I‟m hungry) Bas 2-minute (Only 2 minutes) Health bhi. NIL positioned Maggi as a „fun‟ food for kids which mothers could prepare easily. games and industrial visits for school kids to further strengthen the brand image.maggi-club. NIL aggressively promoted Maggi noodles through several schemes like:     Distributing free samples Giving gifts on the return of empty packs Organizing contests. bhookh lagi hai (Mom.Current Scenario of Maggi Leading Brand in India as well as World. Tag lines of Maggi from the various ads include:     Mummy. Reasonable competitive pricing. Creative interaction blogs for customers: – www. Inviting housewives to send new innovative recipes made from Maggi and introduce rewards for the same. Future Strategic Options • Change product • Change product use . PROMOTION STRATEGIES THROUGHOUT THE PLC • Through its ads.

• Change product image • Change product positioning • Introduction of new product/revising the product by      New to the world New product lines Product Line Additions Improvements/Revisions Repositioned products • Lower price products .

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