Nestle- Maggi Strategy in India
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Transcript of Nestle- Maggi Strategy in India
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8/3/2019 Nestle- Maggi Strategy in India
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Amarketingstrategyismosteffectivewhenitisanintegralcomponent
offirmstrategy,defininghowtheorganizationwillsuccessfullyengage
customers,prospects,andcompetitorsinthemarketarena.corporate
strategies,corporatemissions,andcorporategoals.Asthecustomercon-
titutesthesourceofacompany'srevenue,marketingstrategyisclosely
nkedwithsales.Akeycomponentofmarketingstrategyisoftento
epmarketinginlinewithacompany'soverarchingmissionstatement.
CONTENTS
Background
External Analysis
Market Analysis
Maggi Strategy
STEP 1
STEP 2
STEP 3
STEP 4
Conclusion and Quiz
Reference
STEP 5
STEP 6
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Misconceptions about Low middle incomecountry
1. The poor have no Money.
2. The poor are only concentrate on fulfilling basic needs.
3. No room for a new market entrant to make a profit.
4. The poor can not use advanced technology.
5. Global company will be criticized for exploiting the poor.
1. Background
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Swiss company founded 1866 by nestle
Products in 130 countries across theworld
Selling over a billon product everyday
Good food and good health of consumer
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1. Background
Built the factory in 1961Now 7 factories and 4 branch of-fice
Growth aligning with Indias econ-omy
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First Move Advantage
How to react to
trendand consumersneeds
Now, Nestle has
various businesses inIndia.
NESCAFEMAGGI
MILK YBAR
MILOKIT KATBAR-ONEMILKMAID
NESTEA.
.
.
44
1. Background
Instant Noodles In-dustry
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India shows 8.6% growth in economy-It is result of rapid growth in service industry and industrial activi-ty
-Trade, finance, manufacture sector scored highest percentage.
2. External Analysis - Eco-nomic
GDP growth in India, otherlarge emerging economies
and the OECD
Source : OECD
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From US$ 556 per annum in 2003 to US$ 1150 by2015
- Huge consumption demand in urban area
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Rise in disposable income in
India
Source : Euro monitor, BRICs Report (GoldmanSachs)
2. External Analysis - Economic
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Urban Pro-
file Segments of middle and rural class
Introduce of low-priced goods in smallerpacksizes pushed the demand in town
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Source : Statistical Outline of India (2005-2006)
opportuni-ty
ConsumerProfile
Source : Statistical Outline of India (2005-2006)
Rapid urbanization rising per capita income, have caused rapid growth andchange in demand patterns
2. External Analysis - Economic
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Indian culture based on cultural di-
versity
Various race by regional , class basis
Various cultural background by reli-gionMultilingual culture
currently 18 language is designated asofficial language
NEED ADAPTA-TION
2. External Analysis - Cultural
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Example of Adaptation : Mac don-ald
-Mac Veggi
Began bugger with mixture ofIndian spices
Exclusive in India
-Mac Chicken Maharaja
Double Chcken buggerin india instead of Big Mac
Exclusive in India
2. External Analysis - Cultural
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Lifestyle of the urban Indian
Having his dinner latefrom around 8:30 pm to as late as 11
pm
Huge demand a convenient snackbetween lunch and din-
ner
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3. Market Analysis - Life-style
A key need for a product
Providing good quality food and conve-nience
Taking less time to cookGetting fast relief from hunger
This market needs to segment by area and age group be-cause of preference of consumers.
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3. Market Analysis A Launch ofMaggi
A launch of Maggi in 1983
Faced big obstaclesCompetitors of Ready to eat foods
Local Foods
Limitation
Not likely to accept Maggi as a meal insteadof Roti or Rice
on the working women
Reposition-ing
on Children andTeenagers
Targeting
Targeting
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The leading brand in the instantnoodles segment in India
Enjoying a market share of79.3%
Being the pioneer in the noodles market hasgiven it a first movers advantage over oth-er brands
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3. Market Analysis - Sit-uation
Regularly coming up with new flavors
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Strengths Weakness
Market Leader
Highest advertising share
Emotional relationship with theconsumer
Health related issues
Heavily dependent on one flavor
Opportunities Threats
A size of The instant noodlessegment is growing
Rapid economic growth and ris-ing disposable incomes
Competitive pricing (Top Ramen)
Repositioning of Top Ramen on ahealth platform
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3. Market Analysis -SWOT
SWOT Analysis of
Maggi
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'Don't be a noodle, be a Smoodle'launched in 1991.
A cost differentiation
Growing popularity of Top Ra-men
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3. Market Analysis - Compe-tition
Top Ramen
Product Variety
Packet Noodles: Macho Masala, FunkyChicken, Oye Tomato, Curry Smoodles
Cup Noodles: Spicy Vegetable, TangyChicken
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launched India's first instant pastasnack Sunfeast Pasta Treat in 2005
Made from high protein Durum wheatNot fried
Product VarietyMasala, Tomato and Cheese, Sour
Cream Onion and Cheese.
Promoted as a healthy alternative to instantnoodles
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3. Market Analysis - Competi-tion
ITC SUNFEAST PASTA
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New products Veg Atta Noodles and Dal Atta NoodlesExtension on line of Cup Noodles/Mug Noodles
Upgrade the existing product features
Existing products New products
Existing Markets
Market Penetration(Upgrade existing vari-ants of Maggi)
Product development(Introduce new variantsof Maggi)
New Markets
Market Development(Finding new markets forexisting variants of Mag-gi)
Diversification(Launch totally newvariants of Maggi in to-tally new markets)
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4. Maggis Strategy Whereto go
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HighPrice
LowPrice
Healt
hy
Un-
healthy
HighPrice
LowPrice
Inconve-nient
Conve-nient
Target TargetChildren and Teenagers (Age
4~14)
Studying Age (Age 18~22)
Young Adults (Age 15~29)
FocusingonConve-nience
FocusingonTaste
CUP OMAGGIMAGGI 2
MINUTENOODLES
Position-
ing
Position-
ing
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4. Maggis Strategy - STP
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Product Development Strategy
aligning with Consumersneeds
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4. Maggis Strategy 4P Prod-uct
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Maggi 2 Minute Noodlesprice
Perceived as a snack, not as a meal /
Source : Nestle India
The most popular product: Masal
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4. Maggis Strategy 4PPrice
Various options consumer can
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The rising popularity of the mall-culture in the urban and semi-urbanareas
2020
4. Maggis Strategy 4P Place
India Dried Pasta & Noodles off-trade distributionchannels, by value, 2005-2006 (%)
Source : Denis Mason, Datamon-itor
The average Indian living in urban area
Still preferring shopping through the traditional grocers or ki-ranas
Developing networking with the traditional grocers and mall
Distribution of free sample of Maggi products
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Sales Promotion in schools and offices
Continuous market research focusing on health andtaste
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4. Maggis Strategy 4P Pro-motion
Declined of sales in 2000s
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Advertisement focusing on Children
Taste good, Good for body
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Need better understanding the changing lifestyles of modern India
and anticipating consumer needs in order to provide convenience,taste, nutrition, and wellness through its products.
5. Conclusion and Quiz
Low Level
A name of Nestle Noodle Brand is Neggi.
Middle Level
The strategy is adaptation when they launched Maggi in India.
High Level
A launch of New products Veg Atta Noodles and Dal Atta Noodlesis diversification.
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6. Reference
, , India, Blue Ocean for Korean Entrepreneurs -Fo-
cused on food and Telecom Industries-, 2006.12
, Country Profile: , 2010
, :
C.K. , ., , 2006.5
Business Maps of India, Top Noodle Brands in India, 2011.6
The Economic Times, Maggi losing instant noodles market share in India
to new entrants, 2010.8
Instant Noodles market set for meteoric growth 2011.5
Instant noodles: Rivals turn the heat on Nestle's Maggi, 2010.6
Maggi losing out to new entrants: Nielsen, 2010.8
Euro Monitor, Special Report: Diverging demographic prospects for BRIC
consumer markets, 2009,7
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Website
(Government of India Ministry of Commerce & Industry
Department of Commerce), http://www.commerce.nic.in
, http://www.nestle.com/
, http://www.nestle.in/
, http://www.maggi.in/
, http://statisticsofindia.com/
, http://www.businessweek.com/
OECD, http://www.oecd.org/
, http://www.mcdonaldsindia.com/
Top Ramen , http://www.topramen.in/
Sunfeast Pasta http://www.sunfeastpastatreat.com/
6. Reference
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http://www.commerce.nic.in/http://www.nestle.com/http://www.nestle.in/http://www.maggi.in/http://statisticsofindia.com/http://www.businessweek.com/http://www.oecd.org/http://www.mcdonaldsindia.com/http://www.topramen.in/http://www.sunfeastpastatreat.com/http://www.sunfeastpastatreat.com/http://www.sunfeastpastatreat.com/http://www.topramen.in/http://www.topramen.in/http://www.mcdonaldsindia.com/http://www.mcdonaldsindia.com/http://www.oecd.org/http://www.oecd.org/http://www.businessweek.com/http://www.businessweek.com/http://statisticsofindia.com/http://www.maggi.in/http://www.nestle.in/http://www.nestle.com/http://www.commerce.nic.in/http://www.commerce.nic.in/