Demand Analysis on maggi

Maggi-Unternehmungen AG
Type Aktiengesellschaft; subsidiary of Nestlé






Julius Maggi


Cham, Switzerland

Key people

Alain Pedersen


Maggi noodles is a brand of instant noodles manufactured by Nestlé. The brand is popular in Australia, India, South Africa, Brazil, Nepal,New Zealand, Brunei, Malaysia, Singapore, Sri Lanka, Bangladesh, Pakistan, and the Philippines. In several countries, it is also known as "maggi mee" (mee is Indonesian/Malay/Hokkien for noodles). Maggi noodles are part of the Maggi family, a Nestlé brand of instant soups, stocks, and noodles. Nestlé India Ltd (NIL) offered a variety of culinary products such as instant noodles, soups, sauces and ketchups, cooking aids (seasonings), etc., under the Maggi brand (Refer to Exhibit II for Maggi's product portfolio as of mid-2006). Of these, 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. Over the years, Maggi noodles became a popular snack food product in India.

Wednesday, August 26, 2009

History of Maggi Noodles History of Maggi Noodles Maggi is a Nestle brand of instant noodles. Due to this growing problem Swiss Public Welfare Society asked Julius Maggi to create a vegetable food product that would be quick to prepare and easy to digest. At that time during industrial revolution in Switzerland created factory jobs for women. which later paved the way for Maggi and other easy to make food products. History of Maggi Noodles . bullion. New Zealand. Julius Maggi developed a formula to add taste to meals. Nigeria. which was followed by ready made soup based on legume meal in 1886. who were therefore left with very little time to prepare meals. sauces a and seasoning. Maggi is particularly well known in India. the Philippine and Singapore for its instant Maggi noodles. soups stocks. However in India it was launched in 1980s by Nestle group of companies. (Maggi mee). Pakistan. Apart from two minute noodles Maggi also offers a range of product. In 1863. Australia. when Julius Maggi took over his father’s mill. Today. The original company came into existence in 1872 in Switzerland. Malaysia. It was the first to bring protein rich legume meal to the market. Maggie had merged with Nestle family in 1947.

the transformation of the brand in the last 25 years is a testimony in itself. a survey would reveal that a considerable slice of Maggi noodles’ consumers are single men and women. It knew that although kids love noodles. and when we shared how big a brand Maggie Noodles is in India. to me. Nestle tried to position the noodles brand on the platform of convenience. ‘Noodles in India!’ That. the parents were bothered about the health aspect of the noodles. Law of demand Demand for a commodity increase when its price decreases and fall when its price rises . which is valued at around Rs 250 crore. Brand Journey – A Testimony in Itself For Emmanuel Upputuru. steaming bowl of Maggi on the table – 25 years after the instant noodle brand from Nestle’s stable made its way into Indian kitchens. He explained. In 2005. Realising this. Along the way it has managed to hold off quite a few me-too entrants. National Creative Director.” Initially. Publicis India. targeting working women. the gentleman exclaimed. When Nestle launched its instant noodles brand in the Indian market in the early 1980s. the fact lies that even if the TG is kids. Nestle made a smart move. But it found that sales were not picking up despite heavy promotion.Brand: Maggi Current agency: Pubicis India ‘Bus do minute’ is all it still takes to put a hot.other things remaining constant’ . However. it wanted to explore the potential for such an instant food among the Indian market. Nestle repositioned the brand towards kids using sales promotions and smart advertising. wonderfully fitting into the breakfast-lunch-dinner-in-between snacking slot. Maggi launched Maggi Atta Noodles with the baseline ‘Taste bhi. The pricing and the variety in tastes are the added advantages. As of now it enjoys around 50 per cent market share in this segment. was a testimony to the success of the brand Maggie Noodles in India. Research then showed that kids were the largest consumers of the brand. which was made of maida (refined flour). health bhi’. “Recently I met someone in Singapore. Maggi has managed to create a category for itself in the food and snacks market in the country. Hence.

lower class and high class people . Article MARKETING ARTICLES Mar 14. 2011 admin 1 Comment .Factors affecting the demand Determinants of demand Price of the commodity Income of the consumer Price of related goods Tastes and preferences Advertisements Quality and price QTY 50g 100g 10rs 200g 20rs 400g 40rs 600g 59rs PRICES 5rs The price and the quality is affordable to every middle class.

where it controlled 70 per cent of the market. Two another major players of FMCG. which it successfully did – the brand was available on the shelves of super stores. Maggi has moved form being 7 P. The brand plans to launch itself with a new look and a new taste. decided to venture into the ‘Instant Noodle Market’to try their luck while Maggi is still to continue with innovate itself to add more products . The brand had entered into a distribution tie-up with Marico.Is Maggi too have a competition? Maggi is one of the largest & most lovely snack food brand among Indians which made a create presence in the mind of Indians into the categories of the Istant Noodles. It was then that they started building the brand. Earlier maggi was considered into account as an evening snack but due to rapidly changing in the tasMaggi is one of the largest & most lovely snack food brand among Indians which made a create presence in the mind of Indians into the categories of the Istant Noodles. in Uttaranchal. lunch. as much as in the local Kirana stores. the only competition Maggi had with the Japan-based Nissin Group’s Top Ramen. Its strategy was to first build-up the distribution network. Top Ramen also has moved to set up its own distribution network. to give it a fresh marketing push.M snack to being a part of breakfast. Top Ramen. on the other hand. recently set up a new plant in Rudrapur. besides hiring a new agency Dentsu. the year 2010 saw a sudden spurt in this category Wai-Wai is now working towards a national presence. Earlier the company had its manufacturing units in Assam and Sikkim. and is also looking at acquiring a FMCG company in the South/ West. GSK and ITC. was aggressive in its marketing – it even roped in Shah Rukh Khan as the brand ambassador. and the Nepal based CG Foods’ Wai-Wai Noodles. but failed to get its distribution network in place. Wai-Wai was restricted itself to the eastern market of West Bengal and Sikkim till now. However. Earlier maggi was considered into account as an evening snack but due to rapidly changing in the taste and preference of consumer. As per its positioning 2 minutes noodles it is easy to make by any one even for those who does not know one word about cooking. Few months back. the owners of Saffola and Parachute. evening snack and dinner in life of average household.

Tricky Tomato. Unilever. while ITC launched Sunfeast Yippee. the new players still stand in a long queue. Thrillin Curry and Romantic Capsica) GSK launched Foodles. That is why they endorsed the brand Horlicks for its new product as part of positioning strategy. with the aim of this Maggi recently added two new flavor likes-: Thrillin Curry & Tricky Tomato Noodles. GSK came into the Istant Noodles category with the name of Horlick’s Foodles. But other brands like GSK and ITC stated that we all very thankful to Nestle. too. Maggi products Noodles: Maggi vegetable multigrain noodles Maggi 2 mins noodles Maggi veg atta noodles Maggi cuppa mania Sauces: Maggi sauces Maggi pichkoo .M snack so that mummy and tummy of child both become happy. which has done the great job in establishment of instant noodles in FMCG Market and marked a created presence into the Indian consumer’s mind.into its existing line. Hence. With the slogan of “Taste Bhi Health Bhi” it’s now available in 5 delicious flavor (Masala. Maggi will soon come up with new innovation in the“Taste Bhi Health Bhi” segment. tried to create some competition with Knorr Soupy Noodles which is tried to make its presence with being 7 P. Chicken. As Horlick has a strong positioning in the Tamil Nadu.

Pasta: Maggi pasta Cooking aids : Maggi magic cubes Maggi bhuna masala Maggi coconut milk power Maggi pizza mazza Adversiments .

New drinkable Maggi noodle soups are also available.Tv adds Flavours Maggi Noodles are available in a large assortment of different flavours. . They are:                          Original Flavour Chicken Curry (a healthier alternative is also sold in supermarkets) Kari Letup ("Explosive" Curry) in Malaysia Laksa Lemak (discontinued) Tom yam Chicken & Corn Beef Oriental Masala Prawn Dal Sambar (whole wheat noodles) Dal Atta noodles Asam Laksa Cheese Chatpata Tomato Stronger Chicken Crispy Chicken Vegetable Atta Noodles (whole wheat noodles) Shahi Pulao (rice noodles) Chilly Chow (rice noodles) Lemon Masala (rice noodles) Mi Goreng Pluz Asli Capsica Maggi noodles also produces instant noodles known as "Hot Bowl" noodles named "Cuppa Mania" in India.

Logistics details .

•Research methodology: • (i) Target Area: Andheri. To understand the brand performance of maggi products Sources of brand equity of maggi like brand awareness.brand image . Bakery.brand association. Paan-Bidi . Medical Store.brand recall. Dadar. Parel • (ii) Shopkeeper Sample Selection: Mall.Market research Market share Objective: To find out the market penetration of Maggi noodles To understand the influences of maggi as a brand on consumers mind set. General • Store.

Office Goers • (iv) Shopkeeper Sample Size: 30 Stpd analysis . Infant foods • Pioneer and Leader so 1st mover advantage in Noodles.offices goers . • House Wives.Shop • (iii) Customer Sample Selection: School Kids. family & shelter. Sauce.packaging SWOT Analysis of Maggi as Brand 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. • Nestle symbolization of warm.with statements such as 2 minute noodles and easy to cook god to eat .flaours.targeting.segmentation:based on lifestyle and habits of urban families . Chocolate.differentiation:taste. • Research and Development Division in India • New Noodles Plant in Uttarnchal Weakness • Generic Brand to Noodles in India • Low rural market presence constraints .positioning .kids . Ketchups and Soup market.

Top Ramen in Noodle and • Knorr Soups. • Opportunity to be substitute to other snacks category of food products. Threats • Competitors with long history in product category Internationally like. • High brand awareness of Indian consumer • Other product category like Biscuits. • 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.• Uniform Brand for all food category • Brand Proliferation Opportunities • Growing package and canned food market in India by 15% annually. Heinz Sauce and ketchups of Heinz Indian. Chips and Ready to Eat Market still unexplored. Comparison of Data sales Maggi top ramen per day sales . • Substitute Product to Product Segment.

maggi has achieved a great position in market and this position is least affected by its competitors {top ramen .Suppy change Conclusions . 2009 Section: News Category: Advertising .etc. afaqs!.} Law of demand ‘lower the price higher the quantity demanded and vice versa’ works completely in case of maggi noodles Maggi for last 25 years had manage to remain unbeaten in the market because it has always gives more preference to the taste of people Maggi: From two minutes to 25 years By Khushboo Tanna. April 23.wai wai. Mumbai.

while sharing an incident that happened with his own children. Other products from the Maggi stable include Maggi Cuppa Mania. Sweet and Sour and Capsicum. been a part of nearly everyone’s life. Chicken. he says. “It gives you a feeling of nostalgia. It is now available in celebrating its 25th anniversary this year. Hemant Mishra. In 2005. . Maggi was then available in four variants -Masala. Both of these. Nestlé’s Maggi has. apparently. they came across Maggi that was cooked in local spices. The new campaign is “inspired” by such truths. a consumer will immediately start talking about his favourite style to cook/consume it. Maggi is born: The product journey Back in 1984.• • • • • Share On its 25th anniversary. national creative director. inviting consumers to share their Maggi Moments From a midnight snack to a lonesome bachelor’s emergency meal. Maggi Bhuna Masala. Masala. While they were on a family vacation to Leh. over time. and works on the basic truth that everyone has at least one Maggi story to tell. Whenever there is mention of Maggi. which became an instant hit with his children. Publicis India. he explains. Maggi Healthy Soups and Maggi Magic Cubes. Publicis India. goes a step further and declares that the ad is a co-creation of the brand and the consumer. To make consumers part of the brand’s journey. The instant noodle snack brand -. Nestlé introduced Maggi Atta instant noodles and then Maggi Rice Mania as well. The ad has been conceptualised by Publicis India. instant noodles were an entirely new category. its latest communication talks about various memories people associate with Maggi.which is also one of the instant packaged food products that Indian consumers were exposed to -.” says Emmanuel Upputuru. Tomato and Curry variants. couldn’t match the original Maggi. Nestlé’s Maggi has launched a campaign. president and chief operating officer. Maggi Sauces.

” he states. the family setting. the brand has deliberately stayed away from celebrity endorsements. and the ‘two minutes’ promise.‘Maggi. all ads for the brand usually focus on the mother-child relationship. but took a backseat eventually. which started off as a USP. The only exception was roping in actor. “The mother and child are the celebrities for Maggi. to promote the Rs 5 Chotu Maggi and the Maggi family packs. Maggi’ in a singsong voice.Elements that have stayed constant in any Maggi film include the jingle -. Maggi. Preity Zinta for a brief period. . Maggi has generally stayed away from taking the celebrity endorsement route. According to Mishra. therefore.

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