IMPACT OF SOCIO-CULTURE ENVIRONMENT ON THE LAUNCH OF

MAGGI-A Nestle Product
AND THE VARIOUS STRATEGIES ADOPTED IN INDIA

Under the guidance of :
Ms. ANUPAMA SOOD

Presented By : AAYUSHI DUBLISH NAMRATA SHARMA JITIN MEHTA RAHUL GAMBHIR SAURABH MADAN UDAY AIRUN F-01 F-02 F-27 F-26 F-25 F-60

Product Extension
– Maggi's first product extension was Maggi instant soups launched in 1988. – Maggi soups had become a pioneer in the organized packaged soup market in India – The turning point came in 2005 – Nestlé Group had been taking measures to transform itself into a 'health and wellness' company, when it introduced the health related variant., – Nestlé came out with Maggi atta (whole-wheat flour) instant noodles.’ A healthy vegetables, followed by the Dal Atta Noodle in May 2006,which contained pulses. – Nestle positioned that instant as a ‘Health’ product that provide 20% extra protein and calcium for a child aged between 7 - 9. – They introduced Maggi rice noodles mania. – Maggi noodles recently introduced a new variety of its noodles, to cater the health conscious customers like 'Less Salt' and 'No Trans fat'.

 Nestle was able to successfully use the umbrella branding for Maggi.  It introduced the sauces category under the brand name of Maggi. Maggi introduced the Maggi sauces category and promoted it under the brand  name of Maggi.  Nestle also introduced the Pizza variant under the brand name of Maggi.  Being Indians more emotional, by doing the emotional marketing they were successfully able to promote these products. In order to stretch Maggi’s brand to include Indian ethnic foods the company tied up with a Pune based chordia foods to launch pickles.  The company also tied up with Indian foods fermentation (IFF), a Chennai based food company to market popular south Indian food preparation such as sambher, dosa, vada and spices in consumer packs.

This positioning gave Nestlé the platform to launch more products under the Maggi brand. It already had Maggi soups, sauces and coconut milk in the market, but given the strong equity of the brand, Nestlé could now extend it to newer categories. To cater to the spices and curry segment, it recently came out with fried Masala paste. In 2008, two brand extensions — Maggi Bhuna Masala and Maggi Cuppa Mania Instant Noodles Capturing New Customer Base: Maggi realized that one of the reasons for a low market share in Gujarat was that most of Gujrati do not eat garlic and Onions so for Gujarat Maggi has come up with a special product which is devoid of onions and garlic and marketed it as Jain Maggi. This helped them gain a completely unconquered market of Jain Noodle eaters.

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The product mix of Maggi is divided into various categories defined below. 1. Noodles · Maggi 2-Minute Noodle ( Masala , Chicken, Curry and Tomato) · Maggi Dal Atta Noodles ( Sambhar taste) · Vegetable Atta Maggi Noodles · Maggi Rice Noodles (Lemon Masala, Chilly Chow and Shahi Pulao) · Maggi Cuppa mania (Masala yo, Chilli chow yo) 2. Sauces · Teekha masala · Tomoto chatpat · Imli khata mitha · Tomato ketchup · Hot and sweet · Tomato pudina · Ginger, Garlic & Coriander · Maggi Oriental Chilli Garlic · Ginger, Garlic & Coriander 3. Maggi Pichko 4. Soups Healthy · Chef Style - Cream Mushroom - Sweet Sour Tomato Noodles - Creamy Chicken - Mixed Vegetable - Rich Tomato · Chinese Style - Chinese Hot Sour Chicken - Chinese Sweet Corn Chicken - Chinese Sweet Corn Vegetables - Chinese Hot & Sour Vegetables

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5.Maggi soup sanjivni · Amla · Badam · Spinach · Dal · Tomato 6. Maggi bhuna masala · Bhuna masala for gravy dishes · Bhuna masala for vegetable dal 7.Maggi magic cubes · Chicken · Vegetarian masala

CULTURE EFFECT-UNIQUE SELLING PREPOSITION
• • • DAL-ATTA NOODLES Targeted to the house lady Fulfills all nutritional requirements and serves as a complete food Supported by the tag-line “Taste bhi, Health bhi”

2 Minute Noodles
Defines the instant noodle category Easy to cook even by children Targeted to children & teenagers Developed for people pressed for time Is a huge success

CUPPA MANIA Developed for people on the “Go” Positioning was done on the basis of convenience

Promotion
• • • • • • Nestle also followed up these launches with ‘It’s different’ ad campaigns. Nestle was focusing their ads based on children's taste and health. In addition to promotional activities, Maggi associated itself with main stream television programme and advertised heavily on kids programme and channels. Maggi is now targeting its products at the entire family and not only kids. Maggi was a sponsor for Hum Log, a popular television show on Doordarshan, India’s sole channel in 1984. Maggi was They came up with their popular character of Pankaj and Javed to communicate with target audienceNestlé carried out various promotional activities as well. These included the August 1999 ‘Fun-Dooz’ campaign and Jungle Jackpot campaign. Maggi has recently launched “MAIN AUR MERI MAGGI” campaign in commensuration of 25 years of Maggi in India.

Messages Maggi Noodles
• • • MAGGI 2-MINUTE Noodles "Taste Bhi Health Bhi“ Chaska Taste ka, Health Rice ka MAGGI RICE NOODLE MANIA comes as another unique TASTE BHI HEALTH BHIoffering from the house of MAGGI. MAGGI Vegetable Atta Noodles, an offering that exemplifies "Taste Bhi Health Bhi". “Just add garam paani … Carry on jaani”

Promotion
Print Advertisements
Some advertisements in the print media were used to highlight the convenience factor of Maggi.

Maggi introduced this advertisement in various magazines in 2003 to celebrate 20 years of its product in India.

POSITIONING

TAGLINES

CONVENIENCE PRODUCT

FAST TO COOK GOOD TO EAT

INSTANT FOOD

“BAS 2 MINUTES”,JUST ADD GARAM PANI….CARRY ON JANNI MUMMY BHOOKH LAGI HAI

FUN FOOD

HEALTH AND WELLNESS FOOD

TASTE BHI HEALTH BHI

INDIANIZED FLAVORS OF SAUCES

ENJOY THE DIFFERENCE

Maggi Noodles or Retailers sales promotion initiatives

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Maggi was distributed free in schools and offices to promote trial
Return gifts on empty packs Maggi fun book and stickers with funky animal facts. Inviting housewives to send new innovative recipes made from maggi. Organizing contests, games industrial visit for school kids. Recently they came up with a contest relating to stating their emotional connection with maggi. Thus, customers will be invited to share their ―Maggi moments‖ with the company. If the company likes the way you prepare Maggi, you could find your photo on Maggi packs. A new website called www.meandmerimaggi.com is also in the works Using attractive advertising campaign for sustaining their image.

Public Relation
•  The Maggi Club - the children under 14 were invited by press advertisements and distribution of leaflets to become a member of maggi club by sending logos cut from 5 empty maggi wrappers. Maggi projected it as “maggi clubbers are fun lovers” and intended to use it as reference group. Benefits offered to maggi-clubbers are various games like Snap safari game, Cap and mask sets, travel India game, Disney today comic. To obtain each gift the member has to send 5 wrappers as purchase proof. Some special privileges were given to regular members time to time like, discounted tickets of Appu Ghar. Organized Maggi school quizzes and sketchingRecently, again, they have started Maggi fan club. This time it is operating online and they are providing user name and password.

PRICE
1. Differentiated packaging 2. Lower price point strategy • Millipack for Rs.5 – Targetting the lower middle class as well as those who want to consume in lesser quantity. • Inflation effect on volume than price - Reduction of 100gm pack to 95gm, keeping price as Rs. 10 only • Multi packs at cheaper price per noodles • Healthier products at higher price. Differentiated packaging

PLACE
Wide distribution network. Limited penetration in rural areas. The company has a complex supply chain process. Realignment of Nestle’s internal structure and creation of specific business unit for culinary in 2006 • To compete with the modern formats of retail trade, two new business divisions - channel and category sales development, and national key accounts management organisation in 2007. 1. Target hawkers/roadside eating joints 2. Kiryana stores • • • •

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, Chocolate, Infant foods •Pioneer and Leader so 1st mover advantage in Noodles, Sauce, Ketchups and Soup market. •Nestle symbolization of warm, family & shelter. •GOOD COMMUNICATION STRATEGY •PRICING STRATEGY IN RECESSION

Weakness
•Generic Brand to Noodles in India •Low rural market presence constraints •Uniform Brand for all food category •Brand Proliferation •

Opportunities
•Growing package and canned food market in India by 15% annually.penetration through vending machine,changing tasets and preferences of the youth •High brand awareness of Indian consumer •Other product category like Biscuits, Chips and Ready to Eat Market still unexplored. •Opportunity to be substitute to other snacks category of food products.

Threats

•Competitors with long history in product category Internationally like, Heinz Sauce and ketchups of Heinz Indian, Top Ramen in Noodle and Knorr Soups. •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. •Substitute Product to Product Segment.

STPD ANALYSIS
• • SEGMENTATION segmented the market on the basis of lifestyle and habits of URBAN FAMILIES TARGETING – mainly targeted the Kids, Youth, Office Goers & Working Woman – convenience-savvy time misers” who would like to get something instant and be over with it quickly. POSITIONING – has positioned itself in the SNACKS category – Maggi have developed its – brand image of instant food products with positioning statements such as “2 minutes noodles” – and “Easy to cook, good to eat”. DIFFERENTIATION: – Taste , flavors ,packaging Maggi have launched wide varieties of products in different flavours which can attract larger set of customers. Maggi products are also available in different sizes catering to different customer needs

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