Group 10- Nestle Maggi Pricing Strategy

1. Krishna Maheshwari- 20M124

2. Vageesh Gupta- 20M152
3. Sayandip Datta- 20M138
4. Chandrakant Vadluru- 20M110

Q. Devise a framework for deciding on the new pricing approach by nestle for Maggi

-> With the help of SWOT analysis, we can decide on the pricing strategy for Maggi.

SWOT Analysis

Strengths Weakness
 High Top of Mind Awareness (TOMA)  Quality of Maggi is being questioned
score  Customers are becoming more
 High engagement with target health conscious
audience through promotional
campaigns
 Brand loyalty
 Dominant market share (63%)

Opportunities Threats
 Sales forecast for 2019 is expected to  Low competitor’s price and superior
grow at 50% growth rate quality
 Increasing demand in emerging  Negative promotion
markets  Less sales growth in developed
 Introducing various flavors of Maggi nations

PRICING STRATEGY:

Based on the above analysis we can conclude that Maggi has a high brand loyalty and TOMA score,
they also have the benefit of high market share. To gain consumer’s trust, to make the product safe
for consumption, especially considering the growing health consciousness among consumers and
retain the original market share they should stick to their original market price and provide higher
value (tangible and intangible).