Presentationon Comparative Analysis of

Various Brands of Noodles With Maggi Noodles

By- Rajesh BarnwalNSHM Business SchoolMBA-005

About Nestle• FMCG industry provides a wide range of

consumables The competition among FMCG manufacturer is also growing and as a result of this, investment in FMCG industry is also increasing, specifically in India.

• It market its products in 130 countries across the world..

• Nestle put nutrition as the core of their business..

• Nestle is a Swiss company founded in 1867 by Henri Nestle

• Basically the company started to meet the need of the milk in world war I..

STORY OF MAGGI 2-MINUTE NOODLES

• It’s a Brand of instant noodle made by Nestle India Ltd.

• It was founded by the Maggi family in Switzerland in the 19th century..

• The Brand is popular in:• -Australia• -India• -Malaysia• -New Zealand• -Singapore• -South Africa

Taste Bhi, Health Bhi PRODUCT VARIANTS

Objective of the project

• To study the sales of 2-minute Maggi noodles in

Durgapur

• To study the taste and preferences of the consumer

• To study the market response to the new variants of

maggi

• To analyze the visibility of maggi in Durgapur

Cont…• To analyze the market share of Maggi with other brands

of noodles.

• To analyze that a new brand like Yippe have the potentiality to break through a monopoly market of reputed brand Maggi.

SWOT analysisStrength• Market leader• USP- Easy to cook & tasty• Excellent advertising visibility• Brand loyalty• Advertising strategy..• Distribution channels

Weakness• Perceived as made up of Maida not good for health and calories..•Heavily dependent on one flavor ..

Opportunities• Increasing level of income of consumers and fast life.• Unexploited rural market..

Threats• ITC, the competitor provides higher margins to its retailer’s and growing fast.•Top Raman has adopted the strategy of reducing the price of its product.

Competitor Brands:

• : And ITC has taken the NEW approach for the newly

launched noodles brand Sunfeast Yippee in the Indian market,

which is dominated by Maggi from decades. Recently, this product

category has also seen a lot of activity with the launch of many

new brands like Horlick’s Foodles by Glaxo Smithkline India,

Knorr from HUL, Ching’s secret by Capital Foods Ltd, Tasty Treat

by Future Group, etc.  

• Top Ramen : Top Ramen is the second largest Noodles

brand in India in 2002, but now a days it is vanished from the

INDIAN market , the supply and demand for this brand is

absolutely lost. So maggi has no competition regarding this brand

Comparative Analysis of Maggi & Yippe market share in Durgapur

Maggi Rs531%

Maggi Rs1031%

Yippe Rs58%

Yippe Rs1030%

OFFTAKE IN BIDHAN NAGAR

1 2 3 4

Maggi Rs552%

Maggi Rs1029

%

Yippe Rs511%

Yippe RsYipp108%

OFFTAKE in Chandidas-1 1 2 3 4

Cont…

Maggi Rs546%

Maggi Rs1035%

Yippe Rs59%

Yippe RS1010%

Offtake in City Centre Market1 2 3 4

Maggi Rs544%Maggi

Rs1039%

Yippe Rs510%

Yippe Rs107%

Offtake in Chandidas Market-2

1 2 3 4

Cont…

Maggi Rs571%

Maggi Rs1018%

Yippe Rs57%

Yippe Rs104%

Offtake in Steel Market1 2 3 4

Offtake of Maggi &Yippe in Durgapur market

s

Maggi Rs 548%

Maggi Rs532%

Yippe Rs59%

Yippe Rs1011%

Offtake1 2 3 4

   Contribution of Maggi Sku’s wise

(Durgapur):-

 The data is collected from the month Jan 2013 to July 2013.

Maggi Chkn Rs

15

Maggi Rs 5

Maggi Rs10

Magic masala

hungroo Rs 15

Hungroo 450

Atta Ndls Rs 20

Atta Ndls Rs 78

maggi Rs 20

Maggi rs 40

Maggi Rs 60

Maggi Rs 80

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

0.40%

21.02%

15.87%

21.44%

1.25% 1.59%0.78%

3.70%

1.58%2.42%

23.42%

6.53%

ContributionContribution

Findings• Maggi is a market leader in noodles category with high

brand loyalty.

• ITC provides higher profit margin to its retailers and growing fast.

• When it comes to the point of purchase of display Maggi again scores over the other brands.

• Though ITC have increased their market share up to 18% but they are unable to take the market share of Maggi, they have taken the market share of Top Ramen and Knorr.

Cont…• Maximum no of retailers says that they get proper credit

facilities on Maggi while other companies fail to do so.

• The sales promotion strategy of maggi is very effective, when compared with other brands.

• Now a day the biggest threat to Maggi is ITC yippe, while other brands are vanished from the market.

• Maggi has a unique relation with consumers.

Cont…

• The Maggi has created a emotional attachments with consumers.

• The variant of maggi masala sells the most in the market, while all other variant of maggi only supports them.

• Nestle is very aggressive towards its product quality.

Suggestions• Competitor strategy needs to be studied for curbing the competition

in the market • The company should mainly concentrate on the already captured

market, and also try to increase the market share of maggi.   • The return of damaged goods by retailers is up to the three months

from the expiry date, it must be extended to 5 months, so that poor shop keepers doesn’t have to bear any loss.

Cont…• The basic problem that a brand faced is an Indian Psyche, Indian

palate is not too adventurous in terms of trying new taste, before launching a new variant of maggi, and they must conduct test marketing.

• Maggi should concentrate on youth crowd. • For motivating retailers, company must give prizes for annually top

10 sellers. • And the highest seller should be awarded by some attractive gifts

like foreign trips and holiday package.

Cont…

• The magical masala of ‘Maggi’ and magic masala of ‘Yippe’ have

almost same taste but it differs in weight and price.

The magic masala yippe have RS 5 & Rs10 Sku’s while magical

masala of maggi have only one sku of Rs 15. If the company wants

to give the competition, they must have to make a Sku of magical

masala of Rs5 & Rs10.

THANKYOU