Maggi Takes The Health Route

Introduction to Presentation
This presentation looks at the various phases in the product life cycle of Maggi noodles in India. It talks about the various measures taken by NIL to keep the Maggi brand fresh in the minds of Indian consumers. It further discusses the measures taken by NIL to reposition Maggi as a 'health product'. The presentation ends with the market penetration strategies of maggi noodles.

Maggi in India
Nestl India Ltd. (NIL), the Indian subsidiary of the global FMCG major, Nestl SA, introduced the Maggi brand in India in 1982. With the launch of Maggi noodles, NIL created an entirely new food category - instant noodles - in the Indian packaged food market. Being the first-mover, NIL successfully managed to retain its leadership in the instant noodles category even until the early 2000s.

Maggi in India
Maggi noodles recently introduced a new variety of its noodles, to cater the health conscious customers like 'Less Salt' and 'No Trans fat'. Over the years, in India Maggi noodles became a popular snack food product.

Competition
During 1990s, the sales of Maggi noodles declined, and this was attributed partly to the growing popularity of Top Ramen. Also they were having a strong competition with local manufacturers. Maggi was also facing competition with the chowmin.

Competitive Strategy
To beat the competition: NIL changed the formulation of Maggi noodles in 1997. However, this proved to be a mistake, as consumers did not like the taste of the new noodles. In March 1999, NIL reintroduced the old formulation of the noodles, after which the sales revived. NIL also introduced several other products like soups and cooking aids under the Maggi brand. In the early 2000s, Maggi was the leader in the branded instant noodles segment, and the company faced little serious competition in this segment.

Competitive StrategyCont.
In 2005, NIL launched another instant Maggi Vegetable Atta Noodles. A healthy instant noodles product made of whole wheat flour and vegetables. In May 2006, Nestle launched a new instant noodles product called Maggi Dal Atta Noodles. Nestle positioned that instant noodles as a Health product that provide 20% extra protein for a child aged between 7 - 9.

Products of Maggi
2 Minute Noodles Vegetable Atta Noodles Dal Atta Noodles Rice Noodles Maggi Sauces Maggi Healthy Soups

Maggi STPD Analysis

SEGMENTATION:
Age Lifestyle Eating Habits of Urban Families

Maggi STPD Analysis

Targeting
Target audience are:
kids Youth Working women Office goers

Maggi STPD Analysis

Positioning Positioned their product with the well known slogan
2minute noodles taste bhi health bhi Easy to cook, good to eat Positioned maggi as hygienic home made snack. And positioned their product as to get fast relief from hunger.

Maggi STPD Analysis

Differentiation Taste Flavours Packaging

SWOT Analysis
Strength
Market leader in their segment Strong brand loyal consumer base Wide range of distribution channel Innovative product

SWOT Analysis
Weakness
Not much presence in rural market. Strong presence of regional competitors. Competitive pricing (Top Ramen) .

SWOT Analysis
Opportunity
Increasing number of working youth. Shift to rural market. Changing preference of consumer toward Chinese food and fast food.

SWOT Analysis
Threat
Price war with competitors. Strong presence of regional competitors.

Market Penetration Strategies Of Maggi Noodles

Promotional campaigns in schools Advertising Campaigns(with celebrities like Preity Zinta) Focusing on Kids Availability in different pack sizes Product innovations

Thank You