IMPACT OF SOCIO-CULTURE ENVIRONMENT ON THE LAUNCH OF

MAGGI-A Nestle Product

AND THE VARIOUS STRATEGIES ADOPTED IN INDIA

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

Under the guidance of :

Ms. ANUPAMA SOOD

Nestle India Ltd. – An Introduction

• A subsidiary of Nestle SA, a Switzerland based FMCG Co.

• Founded in 1866 by Henri Nestle. • 1st manufacturing plant in India – in 1962• Initial products – condensed milk, infant

foods.• Other products added under different brands

like Nescafe, Milkmaid, Maggi etc.

Maggi in India• Nestle India Ltd. (NIL) the Indian subsidiary of the global FMCG major,

Nestlé SA, introduced Maggi brand in India in 1982.• Maggi is the iconic brand of Nestle. • With the launch of Maggi noodles, NIL created an entirely new food

category – Instant Noodles – in the Indian packaged food market.• Being the first mover, NIL successfully managed to retain its leadership in

the instant noodles category even until the early 2000s.• It has now become a generic name for noodles.• 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 Shahi Pulao, Lemon Masala and Chilly Chow in the rice noodle segments.

Initial Strategies of Maggi-The Culture Effect…

• Launched in 5 flavors initially – Masala, chicken, Capsicum, sweet & sour, and Lasagna –• Maggi had to fight hard to be accepted by Indian consumers with their hard-to-change eating• habits. At that time, Indian consumers were rather conservative in their food habits. They preferred to eat traditional Indian dishes rather than

canned or packaged food.

► The packaged food market was very small at this time, Nestle had to promote noodles• as a concept, before it could promote Maggi as a brand.• The first competition came from the ready-to eat snack segment like samosas, biscuits or maybe peanuts, that were usually

‘the bought out’ type. • The second competition came from the homemade snacks like pakoras or sandwiches. • So there were no specific buy and make snack!• Moreover both competitors had certain drawbacks in comparison. Snacks like samosas are usually bought out, and outside

food is generally considered unhygienic and unhealthy. The other competitor, ‘homemade’ snacks overcame both these problems but had the disadvantage of extended preparation time at home.

• Maggi was positioned as the only hygienic home made snack! • Maggi was positioned as ‘2-minute noodles’ under the instant food category .And this gave the implied understanding to

the consumer that it was a ‘between meals’ snack. The company could have easily positioned the product as a meal, either lunch or dinner. But, it chose not to do so, because the Indian consumer mindset did not accept anything other than rice or roti as a meal .

Initial Strategies of Maggi-The Culture Effect…

• The firm did not position it as a ‘ready-to-eat’ meal either, as the housewife prefers to ‘make’ a meal for her kids rather than buy it for them. And if she can make it in two minutes with very little effort, then obviously it’s a hit with her! What’s more, if kids also love the taste, the product is as good as sold! So the ‘2-minute’ funda coupled with the ‘yummy taste worked!

Despite this, Nestlé faced difficulties with their sales after the initial phase. The reason being, the positioning of the product with the wrong target group .Nestle had positioned Maggi as a convenience food product aimed at the target group of working women who hardly found any time for cooking. Unfortunately this could not hold the product for very long. In the course of many market researches and surveys, the firm found that children were the biggest consumers of Maggi noodles.

Initial Phase of Maggi

Repositioning► Quickly they repositioned it towards the kids segment with various tools of sales promotion

like colour pencils, sketch pens, fun books, Maggi clubs which worked wonders for the brand► . NIL started offering a healthy product to its consumer, because they know very well that, if

they have to tap the Indian consumer, they have to focused mainly on the taste,nutrition,health and wellness. .

– Firstly, they positioned their product as to get fast relief from hunger, but they visualized and make their product for fun and adventure. It therefore devised a two-pronged strategy to attract mothers on the ‘convenience and heath ’ plank and lure kids on the ‘fun’ plank.

► The noodles' tagline from ‘bus 2 minute’ shifted to , 'Fast to Cook Good to Eat' and 'Mummy, bhookh lagi hai' (Mom, I'm hungry), and “Taste bhi, health bhi‘ to not only promote the product, but also to educate the consumer about the advantages of the product.

► They promoted the product further by distributing free samples. Giving gifts on return of empty packets, etc. Gradually, the market for instant noodles began to grow. The company also decided to focus on promotions to increase the brand awareness. In the initial years, Nestle promotional activities for Maggi included schemes offering gifts( such as toys and utensils) in return for empty noodles pack.

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 he 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. All over the country, atta is considered healthier than Maida or refined flour The company moved away from the ‘not-so-healthy’ maida(refined wheat) to make its noodles, to Maggi Veg Atta noodles A healthy instant noodles product made of whole wheat flour, and real 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.

• Nestle also used the cultural base marketing in India as knowing the fact that Indian people like rice, 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'. The company used new noodle-processing technology, so that it could air-dry instead of oil-fry the noodles.

– Nestle was able to successfully use the umbrella branding for Maggi. Maggi also know that it has to increase its presence into other category to increase the visibility of the brand Maggi and also make these product popular so, 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 by which one can be able to create the pizzas at the home. It was also promoted 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 under the year 1995.

• 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 in Dec 1995. The company reportedly saw a lot of untabbed potential in the market for ready to usesouth Indian market.

• 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 lowmarket 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.

• Multi-packs – Maggi has mono pack, millipack, packs of 2,4 and 6.

• The product mix of Maggi is divided into various categories defined below. The company has• launched various products under each category as mentioned 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• - Tangy Tomato Vegetables• · Home Style• - Creamy Chicken• - Mixed Vegetable• - Rich Tomato• · Chinese Style• - Chinese Hot Sour Chicken• - Chinese Sweet Corn Chicken• - Chinese Sweet Corn Vegetables• - Chinese Hot & Sour Vegetables

• 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

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 categoryEasy to cook by eve by childrenTargeted to children & teenagersDeveloped for people pressed for timeIs a huge success

CUPPA MANIA

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

Messages Maggi Noodles• MAGGI 2-MINUTE Noodles

• "Taste Bhi Health Bhi“

• Chaska Taste ka, Health Rice kaMAGGI 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• 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.

PromotionPrint Advertisements

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

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

FUN FOOD MUMMY BHOOKH LAGI HAI

HEALTH AND WELLNESS FOOD TASTE BHI HEALTH BHI

INDIANIZED FLAVORS OF SAUCES ENJOY THE DIFFERENCE

Maggi Noodles or Retailers sales promotion initiatives

• 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.

Organized retails SP

• 7% discounts on 6 piece pack (56 MRP), 5 rupee discount on 8 piece pack( 78 MRP). These are promotional schemes given by retailer itself not by NIL.

• Company is coming up with schemes like giving one soup pack with 8 piece pack.

• In Past company has promotional schemes like 4 piece pack with that of 36 instead of 40.

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 packaging2. 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 joints2. Kiryana stores

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.

SWOT Analysis of Maggi as Brand

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

THANK YOU