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The Fast Moving Consumer Goods (FMCG) industry in India is one of the
largest sectors in the country and over the years has been growing at a very
steady pace. The sector consists of consumer non-durable products which
broadly consists, personal care, household care and food & beverages. The
Indian FMCG industry is largely classified as organised and unorganised. This
sector is also buoyed by intense competition. Besides competition, this industry
is also marked by a robust distribution network coupled with increasing influx
of MNCs across the entire value chain. This sector continues to remain highly
fragmented.
The FMCG industry is volume driven and is characterised by low margins. The
products are branded and backed by marketing, heavy advertising, slick
packaging and strong distribution networks. The FMCG segment can be
classified under the premium segment and popular segment. The premium
segment caters mostly to the higher/upper middle class which is not as price
sensitive apart from being brand conscious. The price sensitive popular or mass
segment consists of consumers belonging mainly to the semi-urban or rural
areas who are not particularly brand conscious. Products sold in the popular
segment have considerably lower prices than their premium counterparts.
Following are the segment-wise product details along with the major players:
FMCG, otherwise known as CPG, is one of the biggest industries in the world
and there are a lot of facts that stand the FMCG industry apart as a career
choice:
FMCG companies are behind the biggest brands in the world. FMCG is all
about names, the products which everyone recognises from trips to the
supermarket or from ads on television. The brands that make up this sector are
the high profile ones, the ones everybody knows and loves. Think Coca-Cola,
Dettol and Dove. This is an industry that puts you in living rooms, kitchens and
bathrooms across the globe.
The FMCG industry changes fast and is constantly evolving. It's fair to say
there is never a dull moment in FMCG. From the pace at which goods leave the
shelves to the rate of product innovation and career progression, things move
quickly. And it doesn't end there. The brands themselves are changing just as
quickly. 40% of brands on the top 100 list twenty years ago have already been
replaced by new names today.
FMCG companies can beat the recession. This is an industry that has proved
itself very resilient to recession – with the majority of companies in the sector
weathering the financial storm in a way that very few others have managed.
Why? Well, consumers will always need to buy the products created by FMCG
companies. They may not buy big items like refrigerators or cars in a recession,
but floors still need to be cleaned, clothes need to be laundered and aches and
pains still need to be soothed.
Nestlé is...
...the world's leading nutrition, health and Wellness Company. Their mission of
"Good Food, Good Life" is to provide consumers with the best tasting, most
nutritious choices in a wide range of food and beverage categories and eating
occasions, from morning to night.
They believe that leadership is about behaviour, and they recognise that trust is
earned over a long period of time by consistently delivering on their promises.
Nestlé believes that it is only possible to create long-term sustainable value for
their shareholders if their behaviour, strategies and operations also create value
for the communities where they operate, for their business partners and of
course, for their consumers. They call this 'creating shared value'.
The Nestlé Corporate Business Principles are at the basis of their company‟s
culture, developed over 140 years, which reflects the ideas of fairness, honesty
and long-term thinking.
Nestlé can trace its origins back to 1866, when the first European condensed
milk factory was opened in Cham, Switzerland, by the Anglo-Swiss Condensed
Milk Company. One year later, Henri Nestlé, a trained pharmacist, launched
one of the world‟s first prepared infant cereals „Farine lactée‟ in Vevey,
Switzerland.
The two companies merged in 1905 to become the Nestlé we know today,
with headquarters still based in the Swiss town of Vevey. They employ around
328 000 people and have factories or operations in almost every country in the
world. Nestlé sales for 2011 were almost CHF 83.7 bn.
"Good Food, Good Life" is the promise they commit to everyday, everywhere
– to enhance lives, throughout life, with good food and beverages.
Nestle is the largest food company in the world. It is present in all five
continents, has an annual turnover of 74.7 billion Swiss Frances. There are 509
factories are running in 83 countries, having 231,000 employs
Company Mission
At Nestle, they believe that research can help them to make better food,
so that people live a better life.
Good food is the primary source of good health, so they are trying to
make good food. To provide fresh and pure products to the customers,
they introduced (SHE) Safety, Health and environment policy to protect
health of their employs and keep clean their surrounding environment.
Company Vision
Ever since its launch in India in 1983, this brand has become synonymous
with noodles. The bright red and yellow colours of the packet with the
brilliant blue “2-minute Noodles” printed on it has found a place on every
kitchen. Over the years, Maggi has grown as a brand and positioned itself as
a “Fast to cook! Good to Eat! “ food product.
The history of this brand traces back to the 19th century when industrial
revolution in Switzerland created factory jobs for women, who were
therefore left with very little time to prepare meals. Due to this growing
problem Swiss Public Welfare Society asked a miller named Julius Maggi to
create a vegetable food product that would be quick to prepare and easy to
digest. Julius, the son of an Italian immigrant came up with a formula to
bring added taste to meals in 1863. Soon after he was commissioned by the
Swiss Public Welfare Society, he came up with two instant pea soups & a
bean soup- the first launch of Maggi brand of instant foods in 1882-
83.Towards the end of the century, Maggi company was producing not just
powdered soups, but bouillon cubes, sauces and other flavourings.
Further the MAGGI 2-MINUTE Noodles has been renovated to provide 20%
of the RDA1 of Calcium and Protein for the core target group building on
the nutrition proposition “Taste bhi health bhi”. The company could have
easily positioned the product as a meal, but did not, as a study had shown
that Indian mentality did not accept anything other than rice or roti as meal.
They made it a easy to cook snack that could be prepared in just two
minutes. The formula clicked well and Maggi became a brand name.
Nestle is a well-known company all over the world and Pakistan. The
company basically deals in food products as their logo says “Good Food,
Good Life”.
The width of a product mix refers to how many different product lines the
company carries.
The length of a product mix refers to the total number of items in the mix.
The depth of a product mix refers to how many variants are offered of
each product in the line.
Milk Products:-
Milkpak Butter
Nestle Everyday
Nestle Nido
Milo power
Milo RTD
Coffee:-
Nescafe Classic
Fruit Drinks:-
Frost
Lactogen
Cereals
Nestle Rice
Nestle Wheat
Neslac
Culinary Products:-
Maggi Noodles
Confectionery:-
Nestle Milkpak
Polo Mint
Kitkat
Water:-
COFFEE-MATE® LIBBY'S®
NESCAFÉ® MILANO
MAGGI Sauces
MAGGI Pichkoo
A. Geographic Segmentation:
Division of the market into different geographical units such as nations, cities,
states, regions, neighbourhoods etc.
Region: South India, Western Region, North, East
City: Class
Rural, urban, semi urban areas
B. Demographic Segmentation:
The market is divided on the basis of variables such as age, family size, family
life cycle, gender, income, occupation, education, religion etc. Demographic
variables are easy to measure and are directly associated with customer.
C. Psychographic Segmentation:
Here buyers are divided into different groups on the basis of
psychological/personality traits, lifestyles or values.
Lifestyle: Culture-oriented, sports oriented, outdoor oriented.
Classification is done on three parameters: AIO Activities, lifestyles or
values.
Personality: Compulsive, gregarious, authoritarian, ambitious
D. Behavioural segmentation:
Buyers are divided on the basis of their knowledge of attitude toward, use of, or
response to a product. The behavioural variables are as follows:
Office Goers and working women: The Company also targeted this
segment people because they were the one who needs refreshment
time to time because of hectic schedule and with would take their
minimal time. So by keeping this aspect into consideration, the
company introduce the Cuppa mania, which is a type of noodle which
takes less time to cook and satisfy the hunger as well.
To prevent Top Ramen, the main competitor, from eating into its market share
some product innovation is required as otherwise Maggi may get stereotyped as
an unexciting product. Top Ramen is following a cost differentiation technique.
To deal with this Maggi has to position itself as a differentiated product. The
market is very sensitive to taste and rejects any flavour it dislikes with Maggi
having learnt it the hard way, thus the product cannot be greatly differentiated
with on basis of taste.
On the other hand Maggi has to deal with the negative perception of Maggi has
of being unhealthy in an increasingly health conscious market, a major threat in
the current scenario.
A product is anything that can be offered to the market to satisfy a want or need,
including physical goods, services, experiences, events, persons, places,
properties, organizations, information and ideas.
Nestle unleashed brand maggi in India Almost 25 years ago in 1983 with launch
of its traditional 2 minutes noodles in its masala, tomato and chicken flavours,
followed by its curry flavour some years down the line.
Maggi was launched in India at the time when instant noodle was not that well
known a category.
When nestle India launched maggi in country, it used the tagline, „fast to cook
and good to eat‟, to not only promote the product‟ but also to educate the ever
growing aspirant consumer about the advantages of using it.
An offering that exemplifies „taste bhi health bhi‟, MAGGI vegetable atta
noodles is tasty because it is loaded with everyone‟s favourites MAGGI
„masala‟ and healthy because it now has more real vegetables and is packed
with the power of fibre. 85g of maggi vegetable atta noodles provides dietary
fibre equal to 3 prepared ratios, 20g each.
MAGGI Vegetable Multigrainz Noodle is made with Ragi, Corn, Jowar and
Wheat. It offers the consumer multi-„gun‟ as it is a source of Protein, Calcium
and Fibre and has added vegetables. It also provides the spicy test to their
customers. The inspiration for the product comes from the growing consumer
preference for a healthier lifestyle and the deep understanding that magi has
developed about Indian food habits and culture.
These are the prices which are set by the company for the different flavours of
MAGGI Noodles.
As we talk about maggi, it is very popular now a day in all over the world and
its main customers are children and youngsters. As we know that MAGGI
Noodles price is not very high, but there are so many competitors in the market
so company can not set price different from their competitors. Currently
company is having the tough competition with Sun feast Yuppie Noodles and
Foodles. One advantage of the company is that noodle‟s packets are available
in different size comparing it with the brand called Top Ramen.
To keep up with the growing trends in the Noodles sector, an intensive dealer-
distributor network is desired. Maggi has a well established distribution
network.
Maggi Factory
Factory Warehouse
Agent
Distributors
Wholesalers
Direct Retailers
End Consumers
But in order to strengthen the distribution, NIL should expand its market to
Rural India with products targeted to the market. Thus this can be one of the
way by which they can increase its volume of sales. So major focus should be
done to this market as well.
Exchange schemes
Price-off offer
Coupons
RESULTS OF PR ACTIVITY:
Recently, again, they have started Maggi fan club. This time it is
operating online and they are providing user name and password.
High
Stars is the portion of the market where the market position and growth both are
very high thus it is very good position of the company addressed by the product-
MAGGI Veg Atta Noodles.
QUESTION MARKS:
Business in these areas states the weak market share with high growth rate. Here
it requires the high cash requirement to come into the stars areas. Thus we can
take the product is MAGGI Dal Atta Noodles.
Cash cows are with the strong market position and low growth rate. Such
markets are usually in a position to make their product favourite with the low
price in the market. Here the example is MAGGI Masala Flavours which is very
popular in today‟s market.
DOGS:
Here the marketing position and market growth rate both are very low and it is
not profitable for the company. Thus company must have to stop the production
of the products coming under this area.
Maggi though has been able to differentiate itself from other Noodles, Maggi
Being taken as generic to Noodles is hampering other extended product
category. Competitors have high grounds to capture the market differentiating
then from being Maggi. It makes others possible product category vulnerable if
lunched under Maggi. So to avoid proliferation of brand and introduce new
products to capture opportunities in other snacks and ready to eat product
category NIL has to introduce new branding strategy. By doing so, NIL could
avoid the draw backs associated with the Maggi brand. It could position new
brand in competition with other competitor‟s brand where there is no fit of
product with the Maggi brand.
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