Maggie Product Launch
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Transcript of 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.
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.
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%).
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
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.
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,
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.
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.
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.
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:
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.
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:
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.
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
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
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.
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
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
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
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.
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.
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.
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.
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.
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.
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
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.
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
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.
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.
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
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
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.