Presentationon Product Strategies (MAGGI) BYASHWANI DADHICH About Nestle • FMCG industry provides a wide range of consumables .The competition among FMCG manufacturers is also growing and as a result of this, investment in FMCG industry is also increasing, specifically in India. • It market its products in 130 countries across the world.. • Nestle put nutrition as the core of their business.. • Nestle is a Swiss company founded in 1986 by Henri Nestle • Basically the company started to meet the need of the milk in world war I.. • Henri Nestle developed a milk-based baby food and soon began marketing it . It was the first product of Nestle. • The Maggi Company merged with Nestle in 1947. Today, Maggi is a leading culinary brand and part of the NESTLE family of fine foods and beverages. • Main focus is on health and wellness.. • “Good Food, Good Life to All Consumers”.. July 12, 2015 3 What is the brand name that comes to your mind when you hear the word “NOODLES ”? The Brand Maggi 2007 Tolani Institute of Management studies .4th Oct. . •It was founded by the Maggi family in Switzerland in the 19th century.STORY OF MAGGI 2-MINUTE NOODLES •It’s a Brand of instant noodle made by Nestle India Ltd. •The Brand is popular in: -Australia • -India • -Malaysia • -New Zealand • -Singapore • -South Africa • . .• Nestle wanted to explore the potential for such an instant food among the Indian market. • Over the years Maggi has launched several products under its Brand name. • Now it enjoys around 90% market share in this segment. introduced the Maggi brand in India in 1982. Nestlé SA. • initially priced at Rs. with its launch of Maggi 2 Minute Noodles.10 with a close 100% margin… . (NIL).2.The Birth in India • Nestlé India Ltd. the Indian subsidiary of the global FMCG major. an instant noodles product. PRODUCT VARIANTS Taste Bhi. Health Bhi . •Initially Nestle tried to position the Noodles in the platform of convenience targeting the working women. .INITIAL STRATEGIES OF MAGGI •Maggi has faced a lot of hurdles in its journey in India •The basic problem the brand faced is the Indian Psyche. •To overcome this NIL conducted a research. the sales of maggi was not picking up despite of heavy Media Advertising. •However. Good to Eat’ was also in keeping with this positioning.) •NIL’s promotions positioned the noodles as a ‘convenience product for mothers & as a ‘fun’ product for children. •The noodle’s tagline . •They promoted the product further by distributing free samples. ’Fast to Cook. .(CONT. giving gifts on return of empty packets .etc. • • Effective Tagline Communication. Features Performance quality Convenience Durability. physical structure of Maggi is very attractive as it is easy to carry. Style………. • The various features of Maggi noodles are first of all its perfect taste according to the Indian touch & spices .PRODUCT DIFFERENTIATION • Product differentiation strategy means how a particular product is different from others on the basis of: • Form. size.. Reliability. • the form shape. comes in various packs and sizes according to customers convenience. • performance level of Maggi is excellent there are various other brands offered target market. • Quality is the main factor on which emphasizes as it is Maggi’s main strength which provides Maggi an edge over its competitors .. • Maggi products are durable as due to its preparation these products are easy to store. but Maggi prevailed as the winner out of them. • • It is an Indian customer’s psyche that “whatever looks good and feels good would be of good quality” so Maggi packs had been designed keeping in mind the same concept • . have a long shelf life and can be stored at any given temperatures which is tested and approved. • Reliability is also one of Maggi’s strength.. as one can always rely on a Maggie product for a particular taste which it guaranties.. The 4 P’s . MAGGI-Product mix • MAGGI 2-MINUTE Noodles • MAGGI Vegetable Atta Noodles • MAGGI CUPPA MANIA • MAGGI Vegetable Multigrain Noodles . .“FAST TO COOK & GOOD TO EAT”. • Basic product benefit . “TASTE BHI HEALTH BHI” • Expected product benefit .good taste with proper nutrition levels and good health.PRODUCT LEVELS: CUSTOMER VALUE HIERARCHY • Core benefit .proper and a good package & fully packed seasoning tastemaker & affordable prices. spicy) Maggi Rice Noodles Maggi 2-Minute Noodles (Veg atta) 95 gms 12.00 200 gms 30.00 100 gms 13.00 100 gms 12.50 Maggi Dal Atta Noodles 100 gms 95 gms 15.00 .MAGGI-Pricing Maggi 2-Minute Noodles (Chicken) Maggi 2-Minute Noodles (Curry) Maggi 2-Minute Noodles (Masala .00 13. 2010 . 2 packs at select low-income markets like Mumbai's Dharavi. 4 and Rs.Nestle had extended Maggi noodles and seasoning to the bottom-of-thepyramid segment by selling Rs. The Economic Times. Aug12. • Whenever. However • Connecting with Customers out of home…on the move • Maggi Fun spots • Supply in other nestle kiosks • ITES/BPO employees .MAGGI-PLACEMENT The distribution network is well spread almost everywhere in India.as it is easily available in all kirana stores. Wherever. retail store etc. . Awareness campaign.. .MAGGI: Promotion Sales Promotion Exchange schemes Price-off offer Scratch n Win Offers Money back offer... Sponsor school quiz. Advertisement Effective Taglines . Video . Competition Analysis . . consumers and fast life. •Variety Heavily dependent on one flavor . . Top Raman has adopted the strategy of •Unexploited rural market.SWOT analysis Strength Market leader Weakness •USP. reducing the price of its product.Easy to cook & tasty for health and calories.g.. Perceived as made up of Maida not good •Brand loyalty •Advertising strategy. •Distribution channels Opportunities Threats •Availability of New segments (e. old ITC.. the competitor provides higher age people) margins to its distributors and growing •Increasing level of income of fast.. Packaging INDUSTRIAL RIVALRY F Top Ramen. Food. Raw F material suppliers. Pasta BUYERS Customer of Mind F image set. Brand .PORTER’S FIVE FORCES MODEL NEW ENTRANTS F Foodles SUPPLIERS Distributors. Chowmein etc SUBSTITUTES F fast Chowmein. GOOD TO EAT TASTE EATING HABITS YOUTH 2-MINUTE NOODLES FLAVORS LIFESTYLE OFFICE GOING PEOPLE TASTE BHI.STPD ANALYSIS SEGMENTING TARGETING POSITIONING DIFFERENTIATIO N AGE KIDS FAST TO COOK. HEALTH BHI PACKAGING WORKING WOMEN . . • PRODUCT LIFE CYCLE OF MAGGI . • Product life cycle is a concept that provides a way to trace the stages of a product’s acceptance ..INTRODUCTION… • The course of a products sales and profits over its lifetime is called the Product Life Cycle. from its introduction (birth) to its decline.. . • Maturity Stage.STAGES IN PLC… • Introduction Stage... . • Decline Stage.. • Growth Stage.. PLC OF MAGGI TIME . • Competitors are few. . • Sales growth tends to be slow at this stage.Introduction Stage. • Cost per customer is high. • Negative profits. The marketing objective is to create product awareness.. Consumer . INTRODUCTORY STAGE OF MAGGI The product launched keeping in mind the working women and children… •No competition • It was the pioneer in the instant noodle market. • Distribution channel Producer -.Distributor -Retailer -.. ” Promotion done by . . • PROMOTION Promotion focuses on awareness and information Promoted with the tag line “ BAS 2 MINUTE.INTRODUCTION CONT… • PRICING The initial pricing strategy was low pricing strategy to make product affordable.Giving gifts on empty packets. Growth Stage… • Rapidly rising sales. • Unit manufacturing cost declines. • Rising profits. • The marketing objective is to maximize market share. . MAGGI GROWTH STAGE… • Sales increased.no any new changes Entry of Competitor – PROMOTION-“GOOD TO EAT FAST TO COOK” .1 brand. • No.prices were kept normal. • 50% market share. PRODUCT. • PRICE. Advertising strategies: Focusing on kids New product innovation according to the need of consumers: -Veg. . Atta Noodles -Dal Atta Noodles -Cuppa Mania Availability in different packages: -50 gms -100 gms -200 gms -family packs(400 gms) Conducting regular market research.MARKET PENETRATION STRATEGIES Promotional campaigns in school. • Cost per customer low. • The marketing objective is to maintain or extend the market share. .Maturity Stage… • Sales are at peak. • Profits are high. – Price Rs. 5 Onwards. .MAGGI MATURITY STAGE • Introduced new Variety. – Market Saturation. – Slow Down In Sales. – Big Time Promotional Offers. MATURITY CONT… PRODUCT . DISTRIBUTION . Adopted various intensive programme for encouraging the product over their competitors in the market.Maggi still comes in very affordable prices starting from Rs.Maggi introduced wide variety of products like Dal atta noodles.Distribution became more intensive. PRICE . Maggi cuppa mania. they reduced the quantity instead of increasing price. Chicken maggi. . 5. Segmentation To Differentiation •Classic Noodles ..5 to 10 yrs. . •Cuppa Mania . •Rice Mania – teenagers.health conscious. Atta Noodles . •Veg..office goers. Decline Stage… • Sales started declining • Profits are at decline • Cost per customer still at low • The marketing objective is to reduce the expenditure . .MAGGI DECLINE STAGE… Sales saw a decline in 1990’s. air dried base. -Formulation changed from fried base to . Tough competition from TOP RAMEN. -Dal atta noodles of sambur flavour. New product launched but failed. Reintroduction of MAGGI Noodle… • Reintroduced in 1999 • Increased Distribution • Focus on new segments of Society • New & Interesting TV Commercial . While Maggi instant noodles had a 90. across urban markets.CURRENT SCENARIO OF MAGGI • Leading Brand in India as well as World. the share dropped to 86. has slipped consistently between December ’09 to July ’10. • Maggi’s share of instant noodles. on an all-India basis.5% in July ’10 on an all-India basis..7% share in December ’09. • Reasonable competitive pricing. but add that Nestle has the potential to expand the Rs 1. • Maggi’s market share is certain to get impacted .300-crore instant noodles category – which itself is growing at a rapid 15% annually . MARKET RESEARCH . Cont… . MARKET SHARE . their market share might got depleted in course of time. They will also reinforce their activities which will ultimately benefit the consumer. • People will definitely taste for a change. • Of course. but it is very difficult to change ones taste bud and the top of mind game..TO conclude… • Here are some who leads called market leader and there are some who follows. Maggi has been a leader for decades and it is Maggi who educated Indian consumer about noodles. . as Maggi has become a generic name in India for their long presence…. called follower. by the entry of some very big players but Maggi will not sit silent. Radio etc) with the Brand Ambassador..Focus on creating distinctive image. . . . .V.000.Strengthen the distribution channel of the rural areas within 100 km of all the metros. chocolates etc under its sole brand name would not only help in Brand extension but will also enhance Maggi’s market share. based on twin benefits of “INSTANT” and “HEALTHY” with emphasis on health conscious and rural market.Launch new advertisement campaign (T.Foray into other food products like chips.Conduct promotional campaigns at schools in small towns with population more than 10. .SUGGESTIVE PROMOTIONAL STRATEGIES . THANK YOU .