Maggie Product Launch

33
INTRODUCTION Maggi is a Nestle brand of instant soups, ketchups and instant noodlesFounded by Maggi family in Switzerland in the 19 th century and merged with Nestle in 1947Maggi was introduced in India in 1982. With the launch of Maggi noodles, Nestle India Limited ( NIL) created an entirely new food category instant noodles- in the Indian packaged food marketBecause of its first mover advantage, NIL successful managed to retain its leadership in the instant noodles category even until the aerly 2000s Noodles are a commodity which is consumed by everyone, right from kids and teenagers to retirees. In fact, India consumes a little less than 90,000 tones of noodles every year. A decade ago the word ‗noodles‘ was synonymous with Nestlé‘s ‗Maggi‘. Two-and-a-half decades since its launch, ‗2 minute Maggi Noodles‘ is the numero uno brand in the Indian market. Overall, the instant noodle market in India is worth over INR 1,300- crore (USD 260 million) and is growing at a phenomenal rate of over 17- 20% per year, according to Data monitor estimates. Inspired by the success of Maggi, a number of F&B manufacturers ventured into this market. Among the prominent names are Top Ramen Smoodles and Cup Noodles manufactured by Indo-Nissin Ltd, Ching's Instant Noodles, AA Nutrition‘s Yummy, and Wai-Wai, owned by the Chaudhary Group from Nepal and India.

Transcript of Maggie Product Launch

Page 1: Maggie Product Launch

INTRODUCTION

• Maggi is a Nestle brand of instant soups, ketchups and instant

noodlesFounded by Maggi family in Switzerland in the 19th century and

merged with Nestle in 1947Maggi was introduced in India in 1982. With the

launch of Maggi noodles, Nestle India Limited ( NIL) created an entirely

new food category – instant noodles- in the Indian packaged food

marketBecause of its first mover advantage, NIL successful managed to

retain its leadership in the instant noodles category even until the aerly

2000s Noodles are a commodity which is consumed by everyone, right from

kids and teenagers to retirees. In fact, India consumes a little less than

90,000 tones of noodles every year. A decade ago the word ‗noodles‘ was

synonymous with Nestlé‘s ‗Maggi‘. Two-and-a-half decades since its

launch, ‗2 minute Maggi Noodles‘ is the numero uno brand in the Indian

market. Overall, the instant noodle market in India is worth over INR 1,300-

crore (USD 260 million) and is growing at a phenomenal rate of over 17-

20% per year, according to Data monitor estimates. Inspired by the success

of Maggi, a number of F&B manufacturers ventured into this market.

Among the prominent names are Top Ramen Smoodles and Cup Noodles

manufactured by Indo-Nissin Ltd, Ching's Instant Noodles, AA Nutrition‘s

Yummy, and Wai-Wai, owned by the Chaudhary Group from Nepal and

India.

Page 2: Maggie Product Launch

In the early 80s, the conservative and typical food consumption era, the concept of

‗ready-to-cook‘ food was alien to the Indian market. People were skeptical to

experiment with food especially food meant for their children. Despite the

unfavorable circumstances, Maggi took the challenge and launched itself in 1983.

The brand‘s appropriate realization of target segment, effective positioning and

effective promotion and sales made Maggi the most-loved noodle brand in India.

Maggi enjoys a market share of over 70% today, despite the presence of a number

of other brands. In 2005, the Maggi brand was worth USD 3.7 billion in

comparison to USD 1.7 billion recorded in 2003. In 2005, Maggi was the highest

Indian spender in the Sales Promotion department in the Noodles Category.

Page 3: Maggie Product Launch

For much time since its launch, Nestlé‘s Maggi Noodles was the only kingpin in

the noodle market. However, in the recent past two well-known FMCG players in

the country – Hindustan Unilever (HUL) and GlaxoSmithKline (GSK) introduced

their own brands of instant food noodles and have managed to put their foot into

this segment. Today, Knorr from HUL and Foodles from GSK have become well

identified noodle brands besides Maggi Noodles and Nissin‘s Top Ramen. New

investments by HUL and GSK are paying off now. Individually, they hold 5% and

2% respectively of the noodles market share. Interestingly, GSK plans to capture

10% of the organized noodles market within a year. The newest entrant in this

sector, ITC, seems to be sending strong competitive vibes to HUL and GSK as

well as Maggi. ITC plans to launch noodles under the ‗Sunfeast‘ brand name.

GSK, HUL and ITC‘s entry into noodles will heat up the competition for Maggi,

which is already facing traction from retailers‘ private labels like Tasty Treat from

Future Group and Feasters from Aditya Birla Retail. According to data provided by

Nielson Co., Maggi‘s share of instant noodles, on an all-India basis, across urban

markets, has slipped consistently between December ‘09 (90.7%) and July ‘10

(86.5%).

Page 4: Maggie Product Launch

STRATEGIES

new InvestmentsTo cope with the increasing competition from the new entrants,

Nestle India is investing INR 950 crore (USD 210.9 million) to set up two units to

manufacture instant noodles and infant foods in Karnataka and Haryana. The unit

in Karnataka will be up and running in the first quarter of next calendar year, while

the Haryana unit is expected to commence its commercial production by the end of

the next calendar year. With three other units based in Punjab, Uttarakhand and

Goa, a fifth facility is expected to be set up in a yet undisclosed location to

manufacture instant noodles; this will be put up for approval in the next two

months. Nestle also announced plans to set up its first Research and Development

Centre in India which will primarily focus on developing products specifically

aimed at the domestic market. This R&D centre is valued at INR 230 crore (USD

51 million) and will be based in Manesar, Haryana.

With increasing competition in the Indian noodles market, it is very difficult to say

whether Maggi can sustain its popularity over the coming years. The new entrants

have launched their own brands of noodles which have already started hampering

Maggi‘s hold on the Indian market. It will be interesting to see how Maggi

combats the competition with the big Indian conglomerates/new entrants

earmarking ambitious plans and high commitments.

About Nestle India & Maggi Noodles

Nestlé India is a subsidiary of Nestlé S.A. of Switzerland. With seven

Page 5: Maggie Product Launch

factories and a large number of co-packers, Nestlé India is a vibrant

Company that provides consumers in India with products of global

standards and is committed to long-term sustainable growth and

shareholder satisfaction.

The Company insists on honesty, integrity and fairness in all aspects of

its business and expects the same in its relationships. This has earned it

the trust and respect of every strata of society that it comes in contact

with and is acknowledged amongst India's 'Most Respected Companies'

and amongst the 'Top Wealth Creators of India'.

Maggi Noodles is one of the largest & most loved snack food brands that define

the Instant Noodles category in India. Maggi has recently launched two new

flavors in the short space of two months – Thrillin Curry & Tricky Tomato

Noodles. Blending Emotions with ingredients, the two new flavors deliver strongly

on ―Taste Bhi Health Bhi‖. It is now available in 5 delectable flavours: Masala,

Chicken, Tricky Tomato, Thrillin Curryand Romantic Capsica.

Maggi noodles are a brand of instant noodles manufactured by Nestlé. The brand is

popular in Australia, India, South Africa, Brazil, Nepal, New

Zealand, Brunei, Malaysia, Singapore, Sri Lanka,Bangladesh, Pakistan, and

the Philippines. Maggi noodles are part of the Maggi family, a Nestlé brand of

instant soups, stocks, and noodles.

Page 6: Maggie Product Launch

However, this approach failed as was evident from the fact that the sales of Maggi

noodles were not picking up despite heavy media advertising. 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. After this, NIL shifted its focus from working women and targeted

children and their mothers through its marketing. 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 this

positioning. NIL aggressively promoted Maggi noodles through several schemes

like distributing free samples, giving gifts on the return of empty packs, etc. NIL's

advertising too played a great role in communicating the benefits of the product to

target consumers.

Through its ads, NIL positioned Maggi as a 'fun' food for kids which mothers

could prepare easily. Taglines like 'Mummy, bhookh lagi hai' (Mom, I'm hungry),

'Bas 2-Minute,' (Only 2 minutes) and 'Fast to Cook Good to Eat' effectively

communicated the product's benefits to target consumers.

These ads had become so popular that the tagline 'Bas 2-Minute' immediately

reminded Indian consumers of Maggi noodles even several years after the ads were

taken off the TV. Maggi's first product extension was Maggi instant soups

launched in 1988. With the launch of Maggi soups, NIL had become a pioneer in

the organized packaged soup market in India.In July 2001, Maggi replaced Nescafé

(NIL's coffee products brand) as the company's core brand. Nescafé had been

NIL's core brand since 1998.

Commenting on the shift, Carlo Donati (Donati), chairman and managing director,

Page 7: Maggie Product Launch

NIL, said, "The focused approach on Nescafé, which was the company's flagship

brand over the last few years, has yielded rich dividends and we plan to replicate

the same in case of Maggi as well."A ccording to Donati, the new focus for

the Maggi brand was to provide 'the much needed impetus' for the culinary

segment as it had been lagging behind some of NIL's other product segments like

milk and milk products and coffee products..

in the early 2000s, the Nestlé Group had been taking measures to transform itself

into a 'health and wellness' company. The company had also set up new research

and development facilities with a view to improving the attributes of the existing

Nestlé products to make them healthier, and to develop new health and wellness

products. Since the early 2000s, the Nestlé Group had been introducing 'health and

wellness' products all over the world. In India, NIL introduced new 'healthier'

weaning and milk products in 2004.

In March 2005, the Maggi brand too took to the health route with the launch of

Vegetable Atta Noodles. NIL made use of the group's extensive research and

development facilities in developing this new 'healthy' product. According to NIL,

Vegetable Atta Noodles were healthier as they were made of whole wheat flour

instead of maida (refined wheat) and also because they contained real

vegetablesAccording to the FICCI 'Food and Beverage Survey' published in

February 2006, health foods, health food supplements, convenience foods and

branded foods were the 'rapidly rising' segments of the food and beverage industry.

The survey also revealed that the market for branded food products was growing at

a healthy rate of around 15 percent in the early 2000s. The changing lifestyles and

eating habits of Indian consumers and the increasing purchasing power of the

growing middle income group were thought to be the reasons behind this growth.

Page 8: Maggie Product Launch

Even though the demand for convenience food was increasing in India in the early

2000s, analysts said that most of the Indian consumers were still conservative in

their food habits, and gave importance to the perceived health benefits of

traditional food. Therefore, it remained to be seen whether products like Maggi

Atta Noodles, despite their 'health' focus, would prevail in the long run.

Nestle aspired to create a Maggi kitchen. It observed a burgeoning craze for

Chinese food & easy to cook meals. The product targeted towards middle class of

metros & tier-1 cities. Maggi was positioned an easy to cook meal in India. Target

customers were children and youth. Being the first-mover, NIL successfully

managed to retain its leadership in the instant noodles category even until the early

2000s. In 2005, NIL started offering a range of new 'healthy' products under the

Maggi brand, in a bid to attract health-conscious consumers. The first marketing

strategy was through TV commercials, Promotional campaigns & the various tag

lines used to promote the product.

360 Marketing Strategy

To maintain the image of the brand Maggi, NIL has adopted the 360 degree

marketing strategy. They promoted the product as a health product. Initially NIL

aggressively promoted Maggi noodles through several schemes like distributing

free samples, giving gifts on the return of empty packs, etc. the company has spent

a huge amount of money in communicating the product‘s benefit to the target

consumers. They have spent the huge amount on various small events for the kids

and on advertisement of the Maggi like electronic and print advertising.

Page 9: Maggie Product Launch

Advertisements

NIL has use the celebrity endorsement strategy to endorse Maggi noodles in order

to strengthen the brand‘s image. Celebrity was endorsed in the advertisement

because India is a country where people are star-struck by film stars and brand

communication messages delivered by celebrities and famous personalities

generate a higher appeal, attention and recall than those executed by non-

celebrities.

Nestle Maggi as a Leader Strategies

Maggi was the first noodles product in India and it was accepted by majority of its

target market which at the time of launch lay in the urban cities of India but with

time Maggi has substantially used different strategies to expand its existing market

space

and by doing so it has kept challengers like Top Ramens Smoodles at bay and

maintained its position as market leader.

Page 10: Maggie Product Launch

Strong Customer Relations:The campaign designed by Nestlé for Maggi‘s silver

jubilee hopes to work on the brand‘s strong consumer connect through television,

the Internet and print. The jingle gets a prominent play in the television campaign.

Nestlé, India‘s largest food products company, has decided not to litter the sky

with hoardings on the occasion. Instead, the ads will play on nostalgia. Consumers

who first sampled the brand as kids now run households. The campaign seeks to

strengthen the association. Thus, customers were 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.

Good Packaging and Strong Dealer Vendor Relations:

Convenience was the unique selling proposition of Maggi when it was launched 25

years ago. For the first time, consumers got something that was hygienically

packed and convenient to prepare. It was also the first fusion experiment on food in

India.

Continuous process innovation:

Page 11: Maggie Product Launch

Instant noodles was an entirely new category in the country, but it was given an

Indian twist. Maggi came in four variants: Masala, chicken, sweet & sour and

capsicum. Of these, only two have survived — masala and chicken which sells

largely in the eastern states.

Masala continues to be the flagship flavour. In the days that followed, it

experimented with more variants, like a garlic- and onion-free one for Gujarat.

Some of these still exist, others were discontinued.

The turning point came in 2005, when Nestlé came out with Maggi atta (whole-

wheat flour) instant noodles. All over the country, atta is considered healthier than

maida or refined flour which the company was using from day one. This helped the

company take the health platform, though Nestlé General Manager (food business)

Shivani Hegde insists that the product never ran the danger of being classified junk

food. It was then that it added the tagline, health bhi, taste bhi (health as well as

taste).

Repositioning as a healthier snack:

That was also the time when Nestlé was repositioning itself worldwide as a Health

and wellness company. At the grassroots level, Maggi started associating with quiz

contests and other such events connected to mental and physical wellbeing. 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. Thus, it recently came out with fried masala paste. In 2008, two brand

extensions — Maggi Bhuna Masala and Maggi Cuppa Mania Instant Noodles.

Page 12: Maggie Product Launch

Price Incentives

The company is taking no chances and is extending its distribution reach to smaller

towns and cities. Maggi happens to be Nestlé‘s most widely distributed brand in

the country. Through independent channels, it reaches those villages where the

company has no presence. This is also the time that Maggi‘s value-for-money pack

priced at Rs 5 is expected to come handy. (The regular pack comes for Rs 10.)

Capturing New Customer Base :

Maggi realised that one of the reasons for a low market share in Gujarat was that

most of gujaratis 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.

Brand Retention:

Page 13: Maggie Product Launch

To sustain the image of the brand, Nestle had adopted the 360 degree marketing

strategy. They promoted themselves as a health product. They promoted the

product with whom the consumer‘s can play with, according to their taste. They

also gave the opportunity of posting the recipe to the women. They also had

organized the various small events for the kids. They have spent the huge amount

on the advertising of the Maggi like electronic and print advertising

Distribution Strategy:

Maggi distribution strategy is a 3 chain system i.e.

Nestle – Distributor – Retailer

Nestle: It has decentralized Manufacturing where each plant operates on its own

requirement of production. There is no monolithic or centralized approach in the

production process. It follows two types of distribution paths. The first one being

traditional (Kirana Stores) in which the stock of Maggi is available to almost all

the small Kirana stores for the consumers. The second one is the institutional food

outlets in which the stock is available with every food malls like big bazaar, Apna

Bazaar, Reliance food outlets. So by making the product available everywhere,

Nestle tries to reach to its customers easily.

Distributor: Nestle offers 6% margin for distributors. The distributor has to pay in

advance to Nestle but he has to give the stock to the retailers on credit. Here they

try to target small and big shops both so that they can cater and reach to every kind

of customers from various strata of the society.

Page 14: Maggie Product Launch

Retailer: Retailer gets 10% margin from distributor and 15% margin for new &

promotional products. Nestle also has brought various area space for different

promotional purposes. For promotional purposes, Nestle does the sampling both

wet and dry sampling at these promotional places.

Competitive Strategy:

To beat the competition from Top Ramen and others in this segment, Nestle did the

following things:

Nestle introduced Maggi in new packs with different contests for the customers.

It came up with innovative products like Maggi Pasta in two different flavors –

Masala & cheese Macroni.

It also focused on its advertising strategies by introducing new ones in order to

keep in touch with customers so that the image of the product does not get washed

away.

It made its product affordable by introducing small Maggi pack of Rs.5.

These competitive strategies are overlapping as the company has always thought of

different kind of strategies keeping in mind its competitors.

Though other brands came up with something similar to Maggi, but they had

temporary effects on consumers mind as consumers switched to the Maggi brand

for its tas

Page 15: Maggie Product Launch

SITUATION ANALYSIS

Nestlé‘s Maggie noodles is the leading brand in the instant noodles segment in

India, enjoying

a market share of 79.3%. The brand has grown to an estimated Rs 200 crore &

contributes to

around 10% of Nestle India‘s top line. Being the pioneer in the noodles market has

given it a

first mover‘s advantage over other brands. Maggi has regularly come up with new

flavours

and has recently launched two variants- Vegetable Atta and Dal Atta noodles,

catering to the

increasing demand for healthy snacks

Page 16: Maggie Product Launch

Market Summary

TARGET MARKETS

Primary target: Children (<16)

Nestle plans to widen its target audience by launching new variants Vegetable and

Dal atta

noodles for health conscious people.

Page 17: Maggie Product Launch

MARKET DEMOGRAPHICS

Demographics:

Region: urban, semi-urban, rural (recent)

Occupation: Housewives, working professionals, self-employed

Sex : Unisex

Income: 1,20,000 p.a. upwards

Social class: Middle and upwards

Page 18: Maggie Product Launch

Family life cycle: Young, single, married with children.

Behavioural:

Occasions: Regular, Everyday user-urban, rural-depends on the temporal aspects of

the

consumer‘s life(varied usage in terms of time of time of day, week, month, year)

User status: first time user-rural, potential users-semi-urban, heavy users-urban

Usage rate: Heavy user-urban, light-rural, medium-semi-urban

Loyalty status: hard core and shifting loyals

Buyer-Readiness Stage: rural-some are aware, semi-urban:some intend to

buy(aware,

informed),urban: informed(some desire,some intend to buy)

Attitude toward product: Enthusiastic, positive

Psychographics:

Lifestyle: Hard pressed for time

Page 19: Maggie Product Launch

BUSINESS STRATEGY

The Company‘s strategy is guided by several fundamental principles. Nestle‘s

existing products grow through innovation and renovation while maintaining a

balance in geographic activities and product lines. Long term potential is never

sacrificed for short term performance. The Company‘s priority is to bring the best

and most relevant products to people, wherever they are, whatever their needs,

throughout their lives.

Nestlé's corporate objective is to be the world's largest and best branded food

manufacturer, whilst ensuring that the Nestlé name is synonymous with products

of the highest quality. In recent years, the company has pursued a policy of

expansion and diversification through acquisition and divestment to achieve a

more balanced structure to the business.

Nestlé describes itself as a food, nutrition, health, and wellness company. Recently

they created Nestlé Nutrition, a global business organization designed to strengthen

the focus on their core nutrition business. They believe strengthening their

leadership in this market is the key element of their corporate strategy. This market

is characterized as one in which the consumer‘s primary motivation for a purchase

is the claims made by the product based on nutritional content.

LIFESTYLE & PRODUCT DEVELOPMENT & INNOVATION

Page 20: Maggie Product Launch

Nestle introduced the Maggi brand to Indian consumers as an instant food product.

At that time, Indian consumers were rather conservative in their food habits,

preferring to eat traditional Indian dishes rather than canned or packaged food. In

fact, Nestle was trying to create an entirely new food category, instant noodles, in

India, which was fast to cook and hence offered convenience.

When the sales started picking up and consumers were fond of Maggi, Nestlé

decided to change the formulation of Maggi noodles. The purpose was not only to

infuse ‗fresh life‘ into the brand, but also to save money through this new

formulation. The company used new noodle-processing technology, so that it could

air-dry instead of oil-fry the noodles. The tastemaker‘s manufacturing process was

also altered.

In July 1999, ‗Maggi‘ the brand, was promoted as the biggest brand in Nestlé‘s

portfolio of brands in India. Nestlé believed that Maggi had immense potential as it

was a very ‗flexible‘ brand under which regional variants could be introduced to

meet various market needs. With reasonable price points and innovative products,

Maggi emerged as a top brand and a major growth driver for the company.

In the early 2000s, the Nestle group had been taking measures to transform itself

into a ‗health & wellness‘ company. The company had also set up new research

and development facilities with a view to improving the attributes of the existing

Nestle products to make them healthier, and to develop new health & wellness

products. In March 2005, the Maggi brand too took to the health route with the

launch of Vegetable Atta Noodles. They made use of the group‘s extensive

research and development facilities in developing this new ‗healthy‘ product.

Page 21: Maggie Product Launch

Nestle, however stress up on innovation has always been a part of its culture and

the new launches have nothing to do specifically with what competition is doing.

Food, Nestle India, says over the years Maggi has focused on understanding the

consumers‘ changing lifestyles and innovated and renovated to create delight in

every day meals and bring happiness to everyday family moments. This is Maggi‘s

DNA. The new launches will only grow the market further.

Page 22: Maggie Product Launch

MAGGI TO THE INDIAN MARKET & WHY THE SPECIFIC BRAND

POSITIONING?

Nestle wanted to explore the potential for such an instant food among the Indian

market. It took several years and lot of money for Nestle to establish its Noodles

brand in India. Now it enjoys around 50% market share in this segment which is

valued at around 250 crores.

Maggi has faced lot of hurdles in its journey in India. NIL introduced the Maggi

brand to Indian consumers when it launched Maggi 2 Minute Noodles, an instant

food product, in 1982. At that time, Indian consumers were rather conservative in

their food habits, preferring to eat traditional Indian dishes rather than canned

or packaged food. In fact, NIL was trying to create an entirely new food category,

instant noodles, in India. Initially, the company targeted working women on the

premise that Maggi noodles were fast to cook and hence offered convenience.

However, this approach failed as was evident from the fact that the sales of Maggi

noodles were not picking up despite heavy media advertising. 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. After this, NIL shifted its focus from working women and targeted

children and their mothers through its marketing. 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 this

positioning.

Page 23: Maggie Product Launch

BRAND STORY

Launched in 5 flavours initially – Masala, chicken, Capsicum, sweet & sour, and

Lasagne –Maggi had to fight hard to be accepted by Indian consumers with their

hard-to-change eating habits. 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. It therefore devised a two-pronged strategy to attract mothers

on the ‗convenience‘ plank and lure kids on the ‗fun‘ plank. 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.

Page 24: Maggie Product Launch

According to analysts‘ the focus on promotion turned out to be the single largest

factor responsible for Maggi‘s rapid acceptance. Nestle\‘s Managers

utilized promotions as measured to meet their sales target. Gradually,

sales promotion became a crutch for Maggi noodles sales. Later many

of the Maggi‘s extensions also made considerable use of promotional schemes.

The focus of all Maggi‘s extensions was more on below the line activities rather

than direct communication. In addition to promotional activities, Maggi

associated itself with main stream television programme and advertised heavily

on kids programme and channels. After its advertisements with taglines like

―mummi bhookh lagi hai,bas do minute‖ and fast to cook good to eat Maggi‘s

popularity became highly attributed to its ―extremely high appeal to children‖. As a

result, Maggi‘s annual growth reportedly touched 15% during its initial years.

MAGGI‘S BRAND EXTENSION

In 1998, Nestle launched Maggi‘s first brand extension, Maggi soup. At this

stage, there was no organized packaged soup market in India. Nestle planned to

create a market for packaged soup as it felt the category had a lot of potential.

However, according to analyst, the company had introduced soups only to cash in

on the Maggi‘s brand name, and was never very serious about the segment.

Page 25: Maggie Product Launch

However, the product failed to generate the desired sales volume and Nestle was

forced to withdraw it. At the end of the year, Maggi noodles were

generating sales volume of around 5000 tons and remained a loss

making proposition for Nestle.

To boost sales, Nestle decided to reduce the price of Maggi noodles. This was

made possible by using thinner and cheaper packaging material, the company also

introduced ―money saver multi packs‖ in the form of 2-in-1 pack and 4-in-1 packs.

As a result volume increased phenomenally. In order to stretch Maggi‘s brand to

include Indian ethnic foods the company launched pickles under the year 1995.

The company reportedly saw a lot of untapped potential in the market for ready to

use south Indian market.

Page 26: Maggie Product Launch

NEW RANGE OF PRODUCTS

Maggi 2 minute Noodles

Maggi Vegetable Atta Noodles

Maggi Dal Atta Noodles

Maggi Rice Noodles Mania

Maggi Sauces

Maggi Pizzza Mazza

Maggi Healthy Soups

Maggi Healthy Soup - Sanjeevni

Page 27: Maggie Product Launch

BRAND RETENTION

To sustain the image of the brand, Nestle had adopted the 360 degree marketing

strategy. They promoted themselves as a health product. They promoted the

product with whom the consumer‘s can play with, according to their taste. They

also gave the opportunity of posting the recipe to the women. They also had

organized the various small events for the kids. They have spent the huge amount

on the advertising of the Maggi like electronic and print advertising

Current market of Maggi

Two and a half decades since its launch, the "2-minute Maggi noodles" still

dominates the instant noodles market in India. This Nestle brand's runaway success

can be regarded quite a feat, especially in a country where most packaged products

struggle to make their presence felt.

Even today, Maggi enjoys a market share of over 70%, despite the presence of a

number of other brands. This decade old dominance, however, is set to be shaken

up. According to Datamonitor estimates, the instant noodle market in India is

worth over Rs 1,300-crore and is growing at a phenomenal rate of over 17-20% per

year

Even though there are a few new competitors in the market they are still struggling

to get a brand recall in the minds of Indian public because for us Maggie is

synonymous with noodles Maggi Brand of products sustained recession in 2000

and 2001 in India by introducing economy packets.

Page 28: Maggie Product Launch

SEGMENTATION

Apart from the traditional positioning for kids, manufacturers are now targeting the

adult consumers as well by leveraging on the convenience aspect which has

become more important given the changing employment patterns

The major headings under segmentation are :-

Age

Lifestyle of youth

It is based on lifestyle and habits of urban families depending on their consumption

per week, type of flavor sold etc. Maggi introduced various types of the brand

noodles depending upon the taste of its consumers. For e.g. it introduced Maggi

masala as a basic product, then Maggi noodles tomato flavor for kids, Veg Atta

noodles for health conscious people and Maggi chicken flavor for non-veg lovers

Page 29: Maggie Product Launch

To cater for the health conscious like 'No MSG', 'Less Salt', and 'No Trans

fat'. Flour based noodle variation marketed by the name "Vegetable Atta Noodles"

has been introduced in India (Atta flour is used in preparing most forms of wheat

based breads in India) and caters to health conscious buyers wary of the refined

flour used in the regular Maggi noodles. This move helps the brand in India as

suburban mothers, who feed the noodles to children as an afterschool snack, are the

primary customers of the brand. Recently, a line of rice noodles and whole

wheat with pulses, carrots, beans, and onions has also been introduced in India. In

fact, "Maggi" has become a well-known brand for instant noodles in India and

Malaysia.

Page 30: Maggie Product Launch

POSITIONING

Initially Nestle tried to position the Noodles in the platform of convenience

targeting the working women. At that time, Indian consumers were rather

conservative in their food habits, preferring to eat traditional Indian dishes rather

than canned or packaged food. But it found that the sales are not picking up despite

heavy promotion .Research then showed that Kids were the largest consumers of

the brand. Realizing this, NIL shifted its focus from working women to children

and their mothers and repositioned the brand towards the kids using. Sales

promotions and smart advertising. NIL aggressively promoted Maggi with taglines

such as ―Mummy Bhook Lagi‖, ―Bas 2Minute‖, ―Fast to cook, good to eat‖ and

through several schemes of free samples, gifts on return of empty packs, etc. Later

was observed that people of all age group started liking Maggi.

Positioned itself as a ‗Fast to cook, goodto eat‘ snack Maggi has to deal with the

negative perception of it being unhealthy in an increasingly health conscious

market, a major threat in the current scenarioWith statements such as 2 min

noodles, easy to cook and good to eat, they create their own position in the market,

and their tagline is the most effective way to get the positioning done. It has made

various tag lines famous in the minds of children like ―Mummy bhook lagi‖, bas

do min, etc.

Page 31: Maggie Product Launch

Targeting

Apart from the traditional positioning for kids, manufacturers are now targeting the

adult consumers as well by leveraging on the convenience aspect which has

become more important given the changing employment patterns.

Now Indians are the largest eaters of Maggi Noodles in the world.

In 2005 Nestle made a very smart move. It knew that although kids love noodles,

the parents were bothered about the health aspect of Noodles which was made of

Maida. Hence Maggi launched Maggi Atta Noodles with the baseline " taste bhi

health bhi" .Reports suggest that after 10 months of the launch , the product has

been well received by Indian consumers. Maggi noodles are an example of a brand

that knows the customer and willing to learn from the mistakes.

Kids

Youth

Working professionalsOffice goers

Page 32: Maggie Product Launch

Health conscious ppl

Differentiation

Magi has differentiated itself with its competitors on the basis of the flavors they

offer and the special taste also the attractive packaging plays an important role in

differentiating itself from the cluttered market of instant noodles

Page 33: Maggie Product Launch

Conclusion Thus we can conclude that maggi has successfully penetrated into our

Indian market.

It had achieved its maturity point some years back and has successfully

been able to retain that position. beating many of its competitors which

tried entering the market with the same concept .

And today this 2min noodles is still every household favourite and has

achieved its market position well In place.