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Marketing Mix Strategies for Maggi

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1.0 Introduction

In year 1872, the factory job was created for women

during the industrial revolution in Switzerland. Therefore,
women were busy and have not enough time to prepare
meals for their family. Julius Maggi, who took over his
father’s mill, was requested to create a vegetable food
product that would be quick to prepare and easy to digest. Live chat 
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Maggi noodle was the first that contain protein rich legume
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meal to the market and followed by readymade soup based
on legume meal in 1886.

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Maggi had merged with Nestle family in 1947 and launched

in 1980 by Nestle group of companies. The nature of Maggi
is Food Company. The products involve soups, sauces and
instant noodles. The mission of Maggi is to become an
inspiring growth partner that delivers creative, branded
food and beverage solutions enabling operators to
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innovate, and delight consumers. Vision of Maggi Studymoose.com
is Nestle uses cookies. By
Norden’s aim, is to meet the various need of the consumer
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every day by marketing and selling food of a consistently
high quality.

Three objectives of Maggi are good to know, which means

factual information on nutrition content, good to
remember, means that the tips for healthy lifestyle,
cooking and diet, and good to talk, means consumer call to
their consumer services teams or log on their website. The
target customers of Maggi noodles are kids, youth and
working women, but the biggest consumer is children.

2.0 The Marketing Mix Strategies

2.1 Product Strategy

2.1.1 Product Classification

Maggi noodles is a consumer product that bought by final

consumer for personal consumption.

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Nestle had positioned Maggi as a convenience food
product. Consumers bought Maggi noodles frequently with
lower price. There are many purchase locations for
consumers to buy Maggi. For example is 7-eleven.

2.1.2 Product and Service Decisions

Product Attribute

Maggi noodles recognized the need of consumers with

provide quality food and convenient at once. It is a “fast
relief from hunger” product. Maggi noodles have settled at
standard flavours such as curry, masala, tomato and
chicken  and not much experimentation is required in the
noodles market. Maggi noodles have launched many
products like Maggi Vegetable Atta Noodles, Maggi
Vegetable Multigrain Noodles. It added Maggi Dal Atta
Noodles in its product portfolio targeting health conscious
people. This was followed with the Rice Noodles. Maggi 2
Minute Noodles already associated with convenience and
taste and is currently accepted as a valid filling snack
between meals. Branding Live chat 
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Maggi noodles are a brand of instant noodles
manufactured by Nestle. The advantages of having
branding to buyers are easier for them to identify. For
sellers, branding provides legal protection for its company
and help to segment market. After realizing its target group
was young children and their mother, Maggi come up with
tagline: “Mummy bhook lagi hai”, “Bus 2 minute”, “Fast to
cook, good to eat” and “Health bhi taste bhi”. The brand of
Maggi noodles is positioned as a health and convenience
product. Packaging

Nestle has developed a good package for Maggi noodles.

They increase the thickness of the plastic sheets used in
Maggi noodles packets to make the product more strength
and allow easy and safe to open. To allow the packets to be
stored easily, they provide a Zip-Seal facility along with the
existing sealing.

Labeling

The labeling of Maggi noodles helps Maggi to promote the Live chat 
product through attractive graphics. The information
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labeled of Maggi noodles include logo, weight of each
packages, ingredients of the product, expired date, cooking
instructions, consumer services line, information of the
manufacturer (address, telephone or fax number and
others) and nutrition information of the product. Product
Support Service

Maggi introduced “money saver multi packs” in the form of

2-in-1 pack and 4-in-1 pack. There contain the service
which let the consumers tried their products in order to get
feedback of consumers of the products. They also give gifts
to consumers who return on empty packets.

2.1.3 Major Brand Strategy Decision

Brand Positioning

Nestle tried to position Maggi noodles in the platform of

convenience targeting the working women but the sales of
Maggi was not picking up even though it had doing a lot of
media advertising. After conducted a research, they
realizes that children were the largest consumers of the
product as children like the taste of Maggi noodles. So, Live chat 
they change their target from working women to children uses cookies. By
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and their mother. They positioned the noodles as a
‘convenience product’ for children’s mother and a ‘fun
product’ for children.

Brand Name selection

Nestle introduced the Maggi brand in India in 1982, with its

launch of Maggi 2 Minute Noodles, an instant noodles
product. In several countries, it also knows as “maggi
mee”. The original company comes into existence in 1872
in Switzerland, when Julius Maggi took over his father’s
mill. Maggi was the first to bring protein-rich legume meal
to the market and followed by readymade soup based on
legume meal in 1886. In 1863, Julius Maggi developed a
formula to add taste to meal. Maggi had merged with
Nestle family in 1947. Brand Sponsorship

Maggi is under manufacturer’s brands that also called

national brands which brand name owned by a
manufacturer or other producer. Maggi brand name owned
by a manufacturer, that is Nestle Company. Brand
Development Live chat 
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Nestle using the strategy of brand extension for attracting
customers. They use the successful brand name to launch
a new or modified product in a new category. Maggi has
launched various products such as noodles, sauces, maggi
pichko, soups healthy, maggi soup sanjivini, maggi bhuna
masala and maggi magic cubes. Maggi extended their
brands for attracting the families which are more health
conscious. Nestle using brand extension to overcome the
problem of declining the sale.

2.2 Pricing Strategy

2.2.1 Pricing Objectives

Pricing strategy for the existing variants of Maggi noodles

based on the  objective of “Maximizing Market Share”.
These variants are competitively priced. As it is highly price
sensitive, any price change initiates an instant price check
reaction from the competitor. The effect of the downward
revision in price can be offset by the increase in sales
volume. Nestle tried to survive if they are plagued with
intense competition. They tried to covers variable costs Live chat 
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Nestle believe that a higher sales volume will lead to lower
unit’s costs and higher long run profit. For product quality,
Maggi brand strive to be affordable luxuries products by
high levels of perceived quality, tests and status with a
price. The launch of Cup-O-Maggi is based on the objective
of achieving “Product Quality Leadership”. Its segment is
less-price sensitive so it will be premium priced to target
the higher end customers. Creation of a premium brand
gives the company an opportunity to provide a differential
pricing and service offering to the customer thereby
creating a key differentiator.

2.2.2 New Product Pricing Strategies

Maggi is using market penetration in marketing Maggi

noodles. Nestle introduce Maggi noodles to the market
with low price in order to increase consumer incentives in
the competitive market. For example, Nestle tend to charge
almost the same price for the different flavor of Maggi 2
minute noodles when initially introduced it. Nestle hope to
gain high sales volume which in turn would lower the costs. Live chat 
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This strategy also makes the customers loyalty and attracts
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more new customers to Maggi noodles product as a result
of low price. Maggi has successfully implied market
penetration in the market as they have 80% market share
in noodles market nowadays.

2.2.3 Product Mix Pricing Strategies

Maggi set price steps between various items in a product

line since there are a wide price differences among maggi
stocks, soups, 2 minute noodles and ketchup. The mix and
types of flavor of Maggi noodles sold will affect the average
selling price of their products and have a substantial
impact on their revenue and gross margin. For instance,
Maggi 2 minute noodles and Cup-O-Maggi have differences
of their selling prices. In addition, Maggi uses product
bundle pricing when they are merge several products in the
same package such as five packages of Maggi noodles are
packing together sell at once to the customer.

2.2.4 Price Adjustment Strategies

Maggi adjusted price by using promotional pricing Live chat 

techniques. For example, Maggi offer Buy OneStudymoose.com
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Free when the mega sales season. Furthermore, Nestle
also imply segmented pricing. For the different location,
the prices set of Maggi noodles is different. Maggi also set
the price a bit different for their new flavor of Maggi
noodles introduced. Psychological pricing also apply by
Maggi noodles. Most of the price set by the retailer is “odd
prices”. For example in Tesco, the price of a package Maggi
noodles is RM3.89. It purposes to attract more customers
to buy for it.

2.3 Distribution Strategy

Maggi has a well established distribution network. Maggi

has its own factory which means that it manufacture its
own product in its factory. Maggi noodles will directly ship
to Carry and Forward agencies (CFAs) that located in each
state when the product is completely manufactured. Carry
and Forward agencies means an organization that provides
the facilities such as warehousing. Warehousing carried the
meaning of holds goods for moderate to long periods in an
attempt to balance supply and demand for producers and
purchasers. After that, distributors will deal with Live chat 
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wholesaler. Wholesaler is the one who takes title to you
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goods handles and then distributes these goods to retailers
or business users, and sometime end consumers also.
Maggi distributors will distribute the goods to wholesaler
such as hypermarket, for example Tesco Extra.

Maggi noodles will be shipped from Maggi warehouse to

the wholesaler as per the order taken by the distributor
sales men. Wholesaler will then distributes Maggi noodles
to retailers or even direct to end consumers. A retailer
owned and operated by someone other than the
manufacturer of the products it sells. For example, Tesco
Extra distributes Maggi noodles to the retailers such as
supermarket and convenience stores. The examples for
supermarket are Tesco, Giant and Carrefour, while the
examples for convenience store are 7-eleven or mini
market. An end consumer is the individual or business who
uses products and services. End consumers will buy Maggi
noodles from supermarket or convenience stores.

2.4 Promotional Strategy

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2.4.1 Sales Promotion
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Sales promotion was used by Maggi noodles to attract
customers and maintain the sales in off season. Dry
sampling and wet sampling are some strategies we can
often see in the super market. The promoters always
distribute the Maggi noodles packet (dry sampling) and
cooked Maggi (wet sampling) to the consumer. From Nestle
webpage, the consumer can get the items that have
promotion in the specified month. For example, customer
can save RM0.30 for every purchase of Maggi 2 Minute
Noodles Asam Laksa from 1st August 2011 to 31st August
2011. Besides that, a lot of contests were hold by Maggi
noodles such as Win a Family Holiday with MAGGI 2
MINUTE NOODLES. The winner of this contest will have the
chance travel to the Gold Coast. Moreover, Maggi noodles
promote their product through a different way, which is
attracting the children who is under 14 years old to
become a member of Maggi Club. They distributed the club
membership card to children and list of gifts has been
provided in the fun programs. Some games and gifts
(known as premium) are offered by Maggi Club such as
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Snap Safari Game, Disney Today Comic and Studymoose.com
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Children must send 5 wrappers as purchase proof in order
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to acquire these benefits. This has successfully attracted
mothers who were being persuaded from their children to
consume Maggi noodles because they would like to collect
the gift.

2.4.2 Advertising
For Maggi noodles, the advertisement can be widely spread
to their potential buyers by the cheapest way. Hum Log,
which is the first Soap Opera in Indian Television, was
advertised the Maggi 2-Minute Noodle. This advertisement
has an effective tag line which is “Bas do Minute” (only two
minutes). This tag line was easy to remember and reinforce
to the people who do not want to spend their time in
kitchen. Maggi noodle has advertised their product based
on different segment. For example, the new Dal-Atta
noodles advertisement demonstrate a grandfather and
father eating the noodles. Because of Dal-Atta noodles,
which contain the Calcium and Protein components, they
become a healthy family. For the product of “Mania”, the
advertisement show the mom as a relax housewife. Live chat 
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Besides that, Maggi noodles also continuing
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through  magazine and their respective webpage. In year
2003, Maggi introduced their product in various magazines
to celebrate 20 years in India. Furthermore, this brand has
advertised their new atta noodles and rice noodles variants
in some weekly magazines. For the Maggi webpage, they
not only show the new product but also teach people how
to use Maggi noodles to cook in various ways.

2.4.3 Public Relations

Public relations also done by Maggi noodles through

organize some innovative campaign. For illustration, the
campaigns of “Remembering your good ol’ days with
Maggi” and “MAIN AUR MERI MAGGI” campaign were hold
by Maggi noodles to celebrate Maggi was completed in 25
years. Besides that, the campaign of “Me and Meri Maggi”
was launched to celebrate the emotional relationship
between Maggi and consumer. This campaign was given
consumer an opportunity to speak out their unique
experiences with Maggi and an overwhelming response has
given by consumer. Apart of that, Maggi noodles also Live chat 
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contest for student. The “Maggi Quiz Competition” which
held at G.D Goenka Public School in year 2011 show cases
the talents of student’s up to date knowledge in all fields.
Moreover, Maggi is one of the sponsors of MasterChef. This
show is a popular cooking reality programme which
organized by Astro.

3.0 Market Opportunities

In Malaysia, there has an increased affinity of Indians

towards Chinese cuisine. It creates new market
opportunity for Maggi to improve its taste further and
capture larger market share. The creative nature of
Malaysian food proprietors in Malaysia had made Maggi
noodles evolved and now comes in several culinary forms.
Among the most popular would be the Maggi Goreng (fried
Maggi noodles) which adorns the table of mamak stalls
across the country. The upward trend of convenience food
consumption has also increase the potential consumer
base of Maggi noodles. For example, the single working
professionals and student population. The localization of Live chat 
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Maggi noodles in Malaysia can boost its sales and earn
more consumers purchases.

Next, the market opportunity for Maggi noodle is their

unexploited rural markets as so far they mainly targeted
cities and developed areas. Maggi has earned certain level
of government appraisal and recognition for their product
offering and operation. Besides, the government is
currently encouraging the civil society and the private
sector to help transform rural areas into a computer
literate society. Thus, it is easier for Maggi to advertise and
marketing their product into rural market. Maggi also being
the market leader employs some of the most sophisticated
technologies in their production unit to ensure they
constantly meet up with the demand from customers. As
technology is getting advanced, there has been
introduction of new machineries helps Maggi come out
with new product, product improvement and new
marketing techniques which can fit to rural market.
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4.0 Recommendations
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It is often to see Maggi noodles become one of the cuisines
at the Indian restaurants. But, it is rare to see Maggi
noodles used by Chinese restaurants. Therefore, we
suggest that Maggi can do some research by adding some
characteristic of Chinese cuisine inside the new product.
Two characteristics of Chinese cuisine are the product
must be distinctive color and aromatic flavor. Chinese food
preparation has focus on the appearance. They believe that
a pleased and harmonious color can increase in appetite.
Another important element in Chinese food is aromatic
flavor. Some aroma ingredient such as aniseed and
cinnamon will cover the ingredient’s particular smells.
Meanwhile, shallot, ginger, cooking wine and sesame oil
are added to make the food fragrant in flavor. All of these
aroma ingredients have their own function that will benefit
our health. For example, aniseed can reducing our oiliness
in the skin and improves the memory function. Therefore,
Maggi noodles can try to create new product in order to
attract more Chinese and also other races. In order to
promote Maggi noodles in the rural markets, Maggi can
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choose to give traditional form of advertising and
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radio. It helps to educate consumers about a never before
used product in a more direct and engaging way. Maggi can
also organize “Home-to-Home” campaigns and Van
Campaigns.

For instance, preparing Maggi noodles and serves to rural

areas consumer in hot and cooked condition. Consumers
will direct impacted by the campaign and feel special, so
next time around, they will repeat purchase Maggi noodles
for consuming. Besides,  Maggi can bring in new machines
to produce more in lesser time as well as keeping its
manufacturing quality precision at its best. Maggi should
also continuously focuses its efforts to better understand
the changing lifestyles and anticipates consumer needs in
order to provide convenience, taste, nutrition, and wellness
through Maggi noodles product. As the government is going
to turn rural areas into technology society, Maggi can
introduce the Internet and e-commerce to market their
Maggi noodles in rural market.
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5.0 Conclusion
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We had chosen Maggi noodles as our product. After doing
this assignment, we know that Maggi are manufactured by
Nestle Company. The brand of Maggi is positioned as a
‘convenience product’ for children’s mother and a ‘fun
product’ for children with tagline ‘Fast to cook Good to eat’.
Maggi has launched various products such as noodles,
sauces, maggi pichko, soups healthy, maggi soup sanjivini,
maggi bhuna masala and maggi magic cubes to extend its
brand. The company tried to covers variable costs and
some fixed costs in order to remain in the industry and
make sure the customer will not move to competitor
because Maggi has many substitute products. Maggi
noodles introduced to market with a low price in order to
increase consumer incentives in the competitive market.

The company promoted Maggi noodles by using sales

promotion, advertising and public relations. We can see the
promoters distribute the Maggi noodles packet (dry
sampling) and cooked Maggi (wet sampling) to consumers
at the supermarket. Maggi noodles always selling at the
convenient places which are the neighborhood places that Live chat 
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can gather many consumers. It has been seen thatyou aagree to our cookie policy
continuing
company need to do many things in order to come out a
successful brand. It is not easy to make a brand successful.
Before create a brand, company need to recognize the
need satisfaction of consumers, target customers and set
the mission to meet the need of consumers. Company
need to develop marketing mix strategies (4Ps) after
developed a product. The company also needs to find out
the opportunities to improve their brand and overcome the
threat. Marketers have to maintain the sales and earned
the consumers loyalty.

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Marketing Mix Strategies for Maggi. (2016, Apr 07). Retrieved from
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