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Maggie Growth Strategies - Presentation Transcript

1. Maggi takes the health route Submitted to: - Ms. Mamta Rampal Program Manager, ISMC. TAT-62. Nestle around the Globeo Nestle is a Swiss company founded in 1866 by Henri Nestle.o Nestle market its products in 130 countries across the world.o Nestle sells over a billion product every day.o Nestle put the nutrition as the core of their business, Nestle main focus is on health and wellness. The main consideration o f

Nestle is Good Food, Good Life to all consumer.3. Core of Nestle Businesso Good Food, Good Life

Food and beverages plays a important role in peoples life- not only because of enjoyment and social pleasure of eatingtogether, but more in more terms of personal health and nu trition.

Nestle is committed to provide their customer, consistent quality, safety as well as value for money and convenience. Great taste is the fundamental of their products and consumer appreciation of good food. Priority on nutrition, health and wellness.

4. Objective of Nestleo Good to know

Factual information on nutrition contento Good to remember

Tips for healthy lifestyle, cooking and dieto Good to talk

Consumers call to their consumer services teams or log on to their website.5. Maggi in Indiao Maggi noodles is a brand of instant noodles made by Nestle.o It was founded by the Maggi family in Switzerland in the 19th century.o Maggi is the iconic brand of Nestle.o Maggi has been Nestles flagship culinary brand not only in India, but globally as we ll.

6. Maggi in Indiao Maggi in India is best known for its flagship product of instant noodles with its various desi sub -segments such as the traditional

dal atta , veg atta and rice noodles along with their various variants, Curry, Masala, Tomato, Chicken in the traditional and ShahiPulao, Lemon Masala and Chilly Chow in the rice noodle segments.

o Nestle unleashed Brand Maggi in India almost 25 years ago in 1983 with the launch of its traditional 2 -minute noodles in itsmasala , tomato and chicken flavours, followed by its curry flavour some years down the line.

7. Maggi in Indiao Maggi launched in India at a time when the instant noodle was not that well known a category.o When Nestle India launched Maggi in the country, it used the tagline, Fast to cook and good to eat, to not only promote the

product, but also to educate the ever growing aspirant consumer about the advantages of using it.8. Need recognition of Indian Consumero There was a key need for a product that provides good quality food and at the same time was convenient.o Maggi visualized that there should be a product which take less time to cook and consumer uses that product to get fast relie f

from hunger.o First, Maggi targeted at the kids, because they know these segment want such kind of pro duct from which they can get relief,

whenever they feel hungry.o As the result, they came up with Maggi - 2minute Noodles.

9. Products of Maggio Maggi Stocks

White Rice Seasoning Chicken Stock Chicken Stock- less salt Beef Stock& Vegetables Stock

o Soups Cook up Soups Instant Soups

10. Products of Maggio 2 minute Noodles

Chicken flavor Vegetables flavor Pizza flavor Curry flavor Cheese flavor

o Ketchups Tomato Chilli Garlic Chilli

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Extra-Hot Chilli11. STP Analysiso Segmentation:

Age Life style Eating habits of urban families

o Targeting Kids Youth Office Goers Working women

12. STP Analysiso Positioning

Easy to cook, Good to Eat 2-minute Noodles

13. SWOT Analysiso Strength

Market leader in their segment Strong brand loyal consumer base wide range of distribution channel Product according to the need of indian consumer innovative product

o Weakness Product are dependent on each other Not so much presence in rural market

14. SWOT Analysiso Opportunity

Increasing number of working youth Product has been acceptable in youth category Shift to rural market Changing preference of consumer toward Chinese food and fast food.

o Threat Price war with competitors Strong presence of regional competitors

15. Market Penetration Strategies Of Maggi Noodleso Promotional campaigns in schoolso Advertising Strategies

Focusing on Kidso

Availability in different pack sizes Packing is the biggest plus point of Maggi market penetration They have product available in all sizes to tap the categories of consum er

o New product innovations16. According to BCG Matrix17. Problemo Maggi sales is declining in 1990so Competition increased in noodles segmento New product in market but rejected by consumers, due to taste.o Maggi launched some new products under their brand, but these product were not so successful.

18. Question 1.o Discuss the strategies undertaken by Nestle India Ltd. to create and establish a new product category.

19. Solutiono Nestl SA, introduced the Maggi brand in India in 1982, with its launch of Maggi 2 Minute Noodles, an instant noodles product.o With the launch of Maggi noodles, NIL created an entirely new food category - instant noodles - in the Indian packaged food

market. Because of its first-mover advantage, NIL successfully managed to retain its leadership in the instant noodles category

even until the early 2000s.20. Solutiono They launched the campaign, Taste bhi health bhi and now its becomes synonymous with Maggi.o They changed the jingle of maggi instant noodles campaign, it was pretty catchy and went down well with the target audience

children.21. Solutiono NIL started offering a healthy product to its consumer, because they know very well that, if they have to tap the indian cons umer,

they have to focused mainly on the health benefits.o The company focused on wellness and nutrition factor to establish a new product category.o The company moved away from the not -so-healthy maida to make its noodles, and launched the Maggi Veg Atta noodles

followed by the Dal Atta Noodles and finally, the very recent rice noodle variants.22. Question 2:

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o What measures were undertaken in sustaining the image of a popular brand (maggi noodles) and the reason behind the brandextension of the same?

23. Solutiono Measures were under taken in sustaining the brand image of Maggi:

Maggi focus on the wellness and nutrition Changed their advertising campaign Firstly, they positioned their product as to get fast relief from hunger, but they visualized and make their product for fun

and adventure.

They came up with their popular character of Pankaj and Javed to communicate with target audience. They went for sales promotion in school and offices, as the exercise of brand recall.

24. Solution They have also done some market research exercise, with regards of taste and health issues. This helped Maggi to force

their consumer to think about them. They have distributed free samples in the period of new launches and gift on return of empty pack. Invite Housewives to send new innovative recipes made from Maggi and introduce rewards for the same, as a brand

development and brand sustaining exercise. Organizing contests , games and industrial visits for school kids to further strengthen the brand im age.

25. Reason behind the brand extension:o NIL extended the Maggi brand to a variety of culinary products like soups, sauces and ketchups, and cooking aids.o They wanted to offer healthy' products under the Maggi brand, in a bid to attract health -conscious consumers.o Increasing competition from regional and some brand like Top ramen and HUL.o Health issues and preference of traditional food habits of indian consumer, is also a reason for the brand extension.

26. Reason behind the brand extension:o

They wanted a strong brand recall, the reason was that Maggi instant noodles were doing very well in the market and they werefar away from competition. So, that Maggi wanted to used this positive point and went for brand e xtension.o They visualized that the image of Maggi is very strong in market, and there is potential for other product, so that they gone for

brand image.27. Question 3:o What strategies were adopted by NIL in repositioning Maggi noodles?

28. Solutiono NIL introduced the Maggi brand to Indian consumer s when it launched Maggi 2 Minute Noodles, an instant food product, in

1982.o At that time, Indian consumers were rather conservative in their food habits, preferring to eat traditional Indian dishes rat her than

canned or packaged food.o In fact, NIL was trying to create an entirely new food category, instant noodles, in India.

29. Solutiono Initially, the company targeted working women on the premise that Maggi noodles were fast to cook and hence offered

convenience.o However, this approach failed as was evident from the fact that the sales of Maggi noodles were not picking up despite heavy

media advertising.o To get to the root of the problem, NIL conducted a research, which revealed that it was children who liked the taste of Maggi

noodles and who were the largest consumers of the product.30. Solutiono After this, NIL shifted its focus from working women and targeted children and their mothers through its marketing.o NIL's promotions positioned the noodles as a 'convenience product', for mothers and as a 'fun'

product for children. The noodles' tagline, 'Fast to Cook Good to Eat' was also in keeping with thispositioning.