SWOT Analysis of Maggi

Strengths · Established Family Brand · Strong Global Corporate Brand ( NIL ) · Specialization in food processing category marketing and distribution in Urban market · Presence of other product segments of food category : Dairy Products, Chocolate, Infant foods · Pioneer and Leader so 1st mover advantage in Noodles, Sauce, Ketchups and Soup market. · Nestle symbolization of warm, family & shelter. · Research and Development Division in India · New Noodles Plant in Uttarnchal Weakness · Generic · Low · Uniform · Brand Proliferation Opportunities · Growing package and canned food market in India by 15% annually. · High brand awareness of Indian consumer · Other product category like Biscuits, Chips and Ready to Eat Market still unexplored. · Opportunity to be substitute to other snacks category of food products. Threats · Competitors with long history in product category Internationally like, Heinz Sauce and ketchups of Heinz Indian, Top Ramen in Noodle and · Knorr Soups. · Single product focused competitors like Heinz sauce and Wai Wai Noodles. · Less Entry Barriers in the Market segment for product category · ITC’s strong base in Indian Market. · Substitute Product to Product Segment Brand rural Brand to market for Noodles in presence all food India constraints category

Magi in India is best known for its flagship product of instant noodles with its various desi subsegments such as traditional dal atta. while others like Titan are yet to celebrate their silver jubilee. Ago in 1983 with the launch of its traditional 2-minute noodles in its masla.chicken in d traditional shahi pulao. Few ad jingles have survived 25 years. It was found by magi family in swizerland in 19th century..masala.tomato and chicken flavours followed by its curry flavours some years down d line… Magi launched at dat time when masala noodles was not well known as a category.lemon masala.Markets tumble in late trades . Nestle unleashed brand magi in India almost 25 yrs. Magi is nestles culinary brand not only in India but globally. but there are challenges ahead.and chilly chow in rice noodles segment.Maggi in India Magi noodles is a brand of instant noodles made by nestle. Fast to cook good to eat was tagline at d launch of magi in India Strategies of magi Maggi's turned 25 and it is still going strong. veg aata. Some long-playing ones like Lifebuoy have been discontinued. Click here to visit SME Buzz Also Read News Now Paper Specials . Nestlé’s Maggi has stuck to the jingle that marked its entry in the country 25 years ago with instant noodles.tomato.rice noodles with their various variants such as curry.Mumbai ports resume normal traffic: DGS .

A new website called www.Q3 FY09 Results: Earnings Season . Maggi’s market share is well above 90 per cent.Your Money: Where to invest . . food.Saving Satyam: Govt gets into action . More The jingle has indeed helped in creating a formidable brand. The jingle gets a prominent play in the television campaign.Sebi permits bourses to go for Smart Order Routing .meandmerimaggi. If the company likes the way you prepare Maggi.India-Pakistan Tensions: Fallout of Mumbai Terror Attack . India’s largest food products company.Maruti stretches lines to meet demand surge . Thus. the ads will play on nostalgia.Tech Mahindra's CEO Sanjay Kalra quits More Also Read News Now Paper Specials .. Instead. health. It has seen no serious rival in the years it has been around.Market Crash: Global worries weigh . has decided not to litter the sky with hoardings on the occasion. Maggi is the biggest brand in the Nestlé portfolio in the country. In fact.com is also in the works. customers will be invited to share their “Maggi moments” with the company.Sebi differs with Achuthan view on 100% open offer . travel. Consumers who first sampled the brand as kids now run households.Time Out: Books. A survey carried out by the National Council of Applied Economic Research named Maggi the country’s most valued FMCG brand. Nestlé.Centre eases import norms on used goods for CWG . the campaign designed by Nestlé for Maggi’s silver jubilee hopes to work on the brand’s strong consumer connect through television.Cabinet clears Direct Taxes Code with some relief . the Internet and print. sports.Govt offers a way out for private suppliers . you could find your photo on Maggi packs. though some FMCG companies like ITC have tried to attack its flanks by launching ready-to-eat pasta. having overtaken Nescafé in the earlier part of the decade. So. The campaign seeks to strengthen the association. fashion. why kill the jingle..M&M to produce Ssangyong vehicles at Chakan plant More Also Read News Now Paper Specials .Jet Airways to go in for 20% equity dilution .. Only briefly in 25 years has the brand taken on board a celebrity (actress Preity Zinta).

In the days that followed. but it was given an Indian twist. These are priced 25 per cent below Maggi. chicken. only two have survived — masala and chicken which sells largely in the eastern states. For the first time. when Nestlé came out with Maggi atta (whole-wheat flour) instant noodles. The turning point came in 2005. The volumes might be low but it has a wide lead over any company which might target these categories. . Nestlé had launched its Maggi range of pickles some years back. Large retailers like Vishal Retail have decided to launch instant noodles under their own private label. It first launched Maggi rice noodles targeted at consumers in the east and south. sweet & sour and capsicum. Nestlé has moved fast to plug any flank that could be attacked by rivals. sauces and coconut milk in the market. Maggi’s properties were expanded from convenience alone to include taste and health as well. like a garlic. But the product was withdrawn. Maggi started associating with quiz contests and other such events connected to mental and physical wellbeing. This helped the company take the health platform.” says she. Maggi. Maggi came in four variants: Masala. It was a product for the urban markets. Some of these still exist. the company is taking no chances and is extending its distribution reach to smaller towns and cities. could become a victim of down-trading. atta is considered healthier than maida or refined flour which the company was using from day one. (The regular pack comes for Rs 10. Hegde says that there is no evidence of down-trading so far. Masala continues to be the flagship flavour. the sales of which are now restricted to a handful of markets in the country. This is also the time that Maggi’s value-for-money pack priced at Rs 5 is expected to come handy. in other words. it reaches those villages where the company has no presence. All over the country. Maggi happens to be Nestlé’s most widely distributed brand in the country. it came out with instant noodles in a cup which is ready to eat after pouring some hot water in it.” says Hegde.” says the Citi report released early-March. This was meant for consumption on the go. Next. It was also the first fusion experiment on food in India. taste bhi (health as well as taste). More categories could follow. Not that all Maggi brand extensions have met with success in the past. FMCG companies. consumers got something that was hygienically packed and convenient to prepare. Of these. “It is an ally to the mother in the kitchen to make tasty and healthy food with convenience. over 90 per cent of the Maggi products in the country cannot be found elsewhere in the world. others were discontinued. one by IDFC-SSKI Securities and the other by Citi Investment Research. where rice for the staple meal.Convenience was the unique selling proposition of Maggi when it was launched 25 years ago. say that the slowdown in the urban markets could impact adversely Nestlé’s prepared dishes and cooking aids business which accounts for 21 per cent of the company’s annual revenue. That was also the time when Nestlé was repositioning itself worldwide as a health and wellness company. This is a clear indication of the company’s pricing strategy. yet give the retailers a profit margin of up to 30 per cent. At the moment. Thus. It has also experimented with Maggi soup cubes. Instant noodles was an entirely new category in the country. Through independent channels. including offices. It already had Maggi soups. Hence.and onion-free one for Gujarat. At the grassroots level. It was then that it added the tagline. This positioning gave Nestlé the platform to launch more products under the Maggi brand. though Hegde is tight-lipped about it. according to Hegde. “Nestlé may not gain significantly in an economic recovery led by the rural sector given its high urban exposure. it experimented with more variants. The IDFC-SSKI report says that almost 60 per cent of the FMCG volumes in the country come from price points below Rs 10. In the recent past. it recently came out with fried masala paste. in contrast. Still. offer retailers margins between 12 per cent and 15 per cent. they have decided to push their own labels to improve their profit margins. The share of such products for Nestlé has improved from 21 per cent some years ago to 30 per cent now and is expected to rise further. Nestlé could now extend it to newer categories. Two reports recently put out by investment analysts. though Nestlé General Manager (food business) Shivani Hegde insists that the product never ran the danger of being classified junk food. But some challenges remain.) “It is no longer an aspirational product for any socio-economic category of consumers. health bhi. But these could be distinctly Indian products. but given the strong equity of the brand.

The same retailers. ……………………………………………………………………………… ……… Nestle India Limited is the market leader in Indian Noodle Market with it’s Maggi Brand of Noodles which was pioneer brand launched in 1983 in the packaged food market of India.7 billion from 1. In 2005 Maggi brand worth was 3. “It is now on the shopping list of most people. It was unsuccessful so dumped those products. Some Maggi ads clearly show that it is targeted at all family members. It appropriate realization of target segment. Analysts and sector experts admit that Maggi is no longer an impulse purchase like a chocolate or an aerated beverage. much of Maggi’s promotion is centred on kids. Maggi Noodle had till 2005 five product line on noodles with four variant in Maggi 2 Minutes Noodle. compete with other producers and fulfill expectation of customers. Hegde hopes to grow. Maggi Brand of products sustained recession in 2000 and 2001 in India by introducing economy packets To fulfill novelty needs of customers and revitalize Maggi Noodles Brand NIL made different attempts by introducing new formulation to new taste but customers resisted change and Maggi had to reintroduce Maggi Noodles in same taste. effective positioning and effective promotion and sales made Maggi to Noodles in India as Xerox it to photocopier. notwithstanding the urban slowdown.Maggi also became successful in sauces. Though NIL tried to extend to other ready to eat products like pickles.” These are issues that Hegde.8 billion market of India. Maggi Noodle is Market leader with around 80% market share in Noodles/Pasta and Maggi Sauce is market leader with almost 37% of market share in 2005 in 1. ketchups and soups Market in India. had driven Nestlé’s growth in the last two years. a veteran of over 20 years at Nestlé. NIL had introduced sauces. to be sure.7 billion market worth in 1. Indeed. . But some of them say the brand has got straitjacketed as an evening snack eaten by children. revitalize brand. In 2006 in compliance with NIL target to be “health and Wellness Company” Maggi repositioned it as health and taste food products. Hegde says instant noodles are now consumed right through the day by all members of the family. ketchups and soups under Maggi brand to reap benefit of brand popularity and image and contribute to financial gains by 1990.7 billion in 2003. the IDFC-SSKI report says. NIL has also introduced with taste and product line in Sauces and Soup Market under Maggi to catch new segment. Nowhere in the world does Nestlé sell such large volumes of instant noodles as in India.” says Technopak Advisors Associate Vicepresident Purnendu Kumar. “Nestlé’s product portfolio is best suited to the Indian consumerism story and rides piggyback the organised retail platform. organised retail is seeing a slowdown…in metro markets it is also seeing a decline. It took the challenge and established Maggi in Indian market considered to be conservative and typical about food consumption. and her team need to address in the days to come. young and old. cooking aids and paste. However. Knorr has taken over Maggi in Soup market recently. In 2005 Maggi was the highest spender in the Promotion and Sales in the Indian Market in the Noodles Category.

– 9 0000 boxes – Rs.000 boxes – 55 cr. 4. Current Sales: Approx.00.79.49.Current Scenario of Maggi Leading Brand in India as well as World. Creative interaction blogs for customers current world market share maggi 94% top reman 4% others 2% . in India Reasonable competitive pricing.000 in Mumbai– 10.

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