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Group MembersLavish Chanodia 49Nidhi Bharati 85Sneha Sinha 83Abhinav Saha 34Animesh Singh 145Swapnil Sakpal 556Suditi Chaudhary 259

NestleNestl is a Swissmultinationalnutritionalandhealth-relatedconsumer goodscompany headquartered inVevey, Switzerland.Nestl was founded in 1866 by Henri Nestl Since it began over 130 years ago, Nestls success with product innovations and business acquisitions has turned it into the largest Food Company in the world.Henri used his surname Nestle both as brand name & Logo, which means little nestThe nest, symbolizes security, family and nourishmentRevenue 69.6 billion (2011)Employees 328,000 (2012)

Nestl's Marketing OrientationMarket orientation occurs when the customers identify the difference in a company and when all the benefits offered to the customers are measured.The main advantage of a company being market oriented is that it would have a higher customer value and there would be a consistency in superior performance in the business.Nestle concentrates on their consumers and tries to understand their physical and emotional desiresNestle try to understand the economic, geographic and social factors which affects the diets of the consumersNestle - concentrated on the lower-income consumers - products available at affordable prices

Nestl's Marketing Orientation(Cont..)Nestle also try to understand the motivations, routines, decision making and purchasing habits of the customersNestle is a Market Oriented company since they try to understand the customer or market needs and produce products accordingly to achieve the organizations goals.Nestle believes that their Manpower is the strength of the company.

MaggiMaggi is a Brand of instant Noodle made by Nestle India LtdIt wasfounded by the Maggi family in Switzerland in the19th centuryNestlelaunched Maggi forthe first timein Indiainthe year1982Nestle wanted to explore the potential for such an Instant food among the Indian market.It took several years and lot ofmoney for Nestle to establish its Noodles brand in India.Now it enjoys around 90% market share in this segment & is one of the most sold FMCG product.Over the years Maggi has launched several products under its Brand nameThe brand is popular in India, Australia, South Africa, Malaysia and many more countries

3 Cs of MaggiCompanyCustomerCompetitor

CompanyMaggi is a brand of Nestle , Switzerland based company.Nestlelaunched Maggi forthe first timein Indiainthe year1982.Nestle is worlds largest food company .Maggi was launched in India in 1982Its Maggi noodles became one of the highest selling FMCG products in India.

CustomerChildrenYouth Office GoersWorking WomenHealth Conscious People

CompetitorsTop Ramens

Sunfeast Yippee noodlesPastas

Maggis Product Life Cycle

Introductory StageHigh failure ratesNo competitionFrequent product modificationLimited distributionHigh marketing and production costsPromotion focuses on awareness andinformationNestl India Ltd. (NIL), theIndian subsidiary of the global FMCG major, Nestl SA, introduced the Maggi brand in India in 1982,. Because ofits first-mover advantage, NIL successfully managedto retain itsleadership in theinstant noodles category

Growth StageIncreasing rateof salesEntrance of competitorsInitial healthy profitsPromotion emphasizes brand adsPrices normally fallDevelopment costs are recovered10 years back itenjoyed around 50% market share in thissegment which was valued at around 250 crores.During the 1990s, the sales of Maggi noodles declined, due to growing popularity of TopRamen , anotherinstant noodles product.In order to improvesales ,NIL changed theformulation ofMaggi noodles in 1997.

Maturity StageDecline sale growth Saturated market Extending product lines Heavy promotions to dealers and consumersPrice and profit fall In 2003 HLL introduced knorr Annapurna, a liquid snack segment in competition to NILs Maggi range The new product by HLL was price at Rs. 5/- and came in 4 variants Like Maggi, soupy snax targeted all age-group, particularly office goers

Decline StageLong drop in salesLarge inventories of unsold items Elimination of all non-essential market expenses

Extending the PLCChange productChange product useChange product imageChange product positioning

STPD AnalysisSegmentationTargetingPositioningDifferentiationAGEKidsFast to cook Good to eatTastesEating HabitsYouth2-Minute NoodlesFlavoursLife style of Urban FamiliesOffice GoersTaste bhi Health bhiPackagingHealth Conscious People

4 Ps Of Marketing of Maggi

ProductMaggi Noodles

PlaceMaggi Noodles are available everywhere .They are available from a small general store to a big supermarket.

PriceMaggi is priced very economically keeping in mind the income level of people.The company wanted to make it available at very affordable prices.The price ranges from Rs 5 to Rs 50.

PromotionPromotional campaigns in school.Advertisingstrategies: -focusingon kids.New product innovation according to the need of consumers:Veg. Atta Noodles.Dal AttaNoodles.Cuppa Mania.

Availability in different packages: -50gms. - 100 gms. -200 gms -family packs (400gms.).Conducting regular market research

The shopkeepers who sell Maggi from there shops get commission between 15-20 % .

Maggis Distribution Channel

Suggestive Promotional StrategiesThey should conduct test marketing before launching new product.Focus on creatingdistinctive image, based on twin benefitsof INSTANT and HEALTHYConductpromotionalcampaignsat schools in small towns with population more than 10,000.Strengthenthe distribution channel of the rural areas within 100 KM ofall the metros.Launchnew advertisementcampaign (T.V., Radio and print media commercials) with the brand ambassador.ConductMarket Research to find out the market penetration of the product in the rural areas covered.

BCG Matrix