NESTLE

 Segmentation, Targeting & Positioning Analysis

1. KitKat
o Segmentation-
 Demographics- KitKat is consumed by people of all ages. The ads of KitKats
showcase that they’re particularly interested in capturing teenagers and young
adults (13-24). They focus on both male and female consumers.
 Psychographics- KitKat attracts upper middle class and middle-class customers
who are young students or job-going people and have a positive attitude.
 Geography- KitKat tends to be found mostly in urban areas with not an impactful
presence in rural.
 Behaviourial- The purchase of the product is not very frequent.
o Targeting- The older generation is attracted to KitKat since it is a very old brand and has
loyal customers base which recognises the brand from their childhood. The ads of
KitKats showcase that they’re particularly interested in capturing the younger, hip
generation in urban areas (which is also a reflection of their higher prices.)
o Positioning-. The quirky marketing of KitKat and its tagline “Break toh banta hai” along
with its ritual of breaking it to share with a friend is the biggest differentiator from other
wafer chocolates in the market like Munch, etc.
2. Maggi
o Segmentation-
 Demographics- People of all ages and genders.
 Psychographics- Young students, working mothers, people who can’t
cook are the customers. Kids are the main consumers.
 Geography- Maggi is found everywhere, from the poshest urban place
to the remotest rural village or mountains.
 Behaviourial- Maggi has a very loyal customer base, many consumers
have it weekly. Various flavours have also been introduced for health-
conscious consumers.
o Targeting- Maggi commercials feature young kids and students who love the taste of
the product. The consistent taste has captured millions of households where there is not
much time to cook and thus targets working mothers and students. The health-
conscious consumers have also been tended to with the introduction of atta maggi and
addition of vegetable to the product.
o Positioning- The 2-minute noodles have absolutely no substitute in the market. The
alternatives like Wai Wai, etc. are still extremely low in market share as compared to
Maggi.
 Marketing Mix
1. Maggi
o Product- Maggi is extremely popular product. Its taste is well suited for India
consumers from all areas. It is also present in other forms such as atta maggi and
other healthy alternatives. They have also introduced loose packets of the “maggi
masala” which are also popular.
o Price- Maggi is priced at very affordable rates which has been important to capture
markets in rural areas. They also have saver packs like 4in1 or 2in1 Maggi packs.
There is also segmented pricing. The differently flavoured Maggi is more expensive.
o Place- Maggi has successfully captured all urban and rural areas of India as well as
remote areas like mountains. They have done so through robust distribution
channels (Manufacturing-Distributor-Retailer)
o Promotion- In the beginning they heavily depended upon advertising Maggi to kids
and working mothers. They also used marketing strategies such as giving out free
cooked samples at grocery stores. They are now synonymous to “2-minute
noodles” since they are very easy and quick to cook. They have also launched
marketing campaigns like “Main aur meri Maggi”, etc.
o Physical evidence- Since its inception, Maggi has come in a bright yellow, glossy
packet with the logo in red. It’s eye-catching and induces hunger in people (also
used by McDonalds for same reasons). The noodles themselves are made such that
they don’t break off easily when boiled which is important for the proper
enjoyment of the cooked product. It is made very easy to cook with just one packet
of “Masala” to be added in the noodles.
o Process- Maggi was in some controversy about having lead in it but has bounced
back from that with sales as much as before by regaining the trust of the
consumers.

2. Nescafe
o Product- Nescafe is packeted coffee sold by Nestle. It offers a wide range of types
of coffee which caters to all consumers like Gold blend, Original Blend, etc. It also
takes care of the needs of consumers who prefer decaffeinated coffee and has a
separate product line for that. They also have several different flavours including
but not limited to vanilla, mocha, irish, etc. The success of Nescafe coffees also led
to roll out of espresso machines by Nescafe which have been quite popular in the
market because of its good quality coffee. This large product line has helped
Nescafe to capture a big market share among the coffee consumers. They have also
launched Nestea which is extremely popular for making Ice-tea at home.
o Price- Nescafe has followed a segmented pricing strategy. The premium coffees
which are exotic flavours and the coffee that comes in jars is more expensive. For
the cheaper variation they have brought out small sachets.
o Place- Nescafe can be found mostly is urban areas since rural areas doesn’t have a
strong base of coffee drinkers yet. Within urban areas, Nescafe can be easily found
anywhere with not a lot of competitors in the market. It has a great distribution
network.
o Promotion- Nescafe is easy to use and hence advertised as a household brand. The
advertisements showcase it as a premium coffee which is true to its price.
Advertisements on TV, newspapers and marketing campaigns has been its primary
 form of promotion. It has also signed Deepika Padukone as its brand ambassador.
The name Nestle is always attached to Nescafe which has also helped in quickly
forming a good reputation in the market.
o Physical evidence- The coffees come in easy-to-use small sachets. They also come
in small glass jars which is a premium experience to have at home. The aroma of
the coffee is quite strong and hits the senses of the consumers as soon as the
sachet or the jar is opened.

 Product Life Cycle

-Nestle -Nestea -Maggi -Milo

Breakfast
Cereals
- Grekyo - Nescafe -Milkmaid -KitKat

1. Breakfast Cereals and Grekyo- These are great additions to nestle product portfolio because
of their engagement with the rising demand for breakfast cereals. They should play a similar
strategy as Maggi pf marketing it to working customers. Grekyo should be positioned as a
healthy but tasty alternative to the traditional “dahi” or curd in India. It can be marketed as a
product with digestive properties and as a healthy dessert.
2. Nestea and Nescafe- These have great opportunities for the future. The market demand for
coffee is on a sharp increase in India. Nescafe sachets is a great way for first time consumers
of the product to taste it. It should focus on developing a base of loyal customers as people
tend to choose a coffee brand and stick to it. They should launch more marketing campaigns
about their other premium offerings so that people could shift from the sachets to the more
profitable coffees like these.
3. Maggi- Maggi had come into a decline stage with its past controversy over the presence of
harmful lead in its products. However, the sales of Maggi have been now brought back to its
old growth and is increasing steadily since then. So, Maggi is still in its maturity phase. The
goal of Maggi should be to stay in this phase as long as possible. It should experiment more
with increasing its product line. Studies show that people are becoming health conscious are
informative about the ingredients they consume. Maggi should get ahead of the curve and
should launch products that are healthy and taste good. They should also focus on more
products that can be cooked instantly since more and more women are joining the workforce
which means future mothers won’t have a lot of time to cook at home.
4. KitKat- KitKat is in its decline phase. The reason for this is the intense and fierce competition
in the market and chocolate industry. Since customers now have a lot of cheaper alternatives
to wafer chocolates, the high prices of KitKat are making it lose customer base and market
share. Though KitKat has a great marketing strategy which has worked in its favour till now,
its important to introduce new products. In India, KitKat should try to capture a greater
number of teenagers by offering more interesting flavours like strawberry, matcha, grape, etc.
which are already quite popular in Japan. KitKat has the potential to become an iconic
chocolate brand in India if it plays to its strengths. It should be marketed as a “cool” chocolate
to have, similar to “cherry cola”. These flavours are rare to be seen in India but have a rising
market.

 BCG Matrix
Stars Question Marks

Nescafe Nestea
High KitKat Milkmaid

Market
Growth
Cash Cows Dogs

Maggi Koko Crunch

Low Munch Milo

High Low

Market Share
 • Ansoff Matrix

Existing New
Market Product
Existing Penetration Development

Koko Crunch Snickers

KItkat truffle Mars Market

Market Diversification
Development
New
Maggi Greekyo
Kitkat

Increasing Risk

 Strengths- Great market study before launching new products, good advertising and
campaigns, great distribution network
 Weaknesses- Controversies over Maggi, some products lacking innovation and losing
market base like kitkat
 Opportunities- New healthy products like greekyo and cereals, more launches of
healthy products can be made, emerging market for instant foods.
 Threats- High competition in the space of chocolates and breakfast cereals, volatile
price of coffee beans can affect nescafe, supply shortages post-covid can lead to price
increase and lose customers.

• Porter’s Five Force- Threat of New Entrants: Products like KitKat are losing ground as new entrants
enter the chocolate market. Not only Indian grown brands but also brands from other countries are a
direct competition to the product. With the newly launched breakfast cereals, there is also a threat as
more and more companies enter the space.

Threat of Substitutes:
People want to shift to healthier alternatives so it’s a possibility that in t he coming years maggi will
lose its edge.
Bargaining Power of Customers: With no switching costs the bargaining power has increased as lots
of competitors are now in the market in all fields like yogurt, noodles, etc.

Bargaining Power of Suppliers:

Especially after covid, power of suppliers has increased since distribution channels have become
weaker.

Competitive Rivalry:
Nestle is leading the FMCG space however other companies are not far behind. They are contstantly
increasing ground and nestle will have to keep up with its competition.