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Contents About NESTLE Nestle Variants Maggi Story Market share Maggi International Brand Maggi in INDIA Marketing strategies Competition Competition strategy Image of brand maggi Marketing penetration strategies SWOT Maggi- 4PS STPD- Maggi

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About NESTLE
Set up in 1866 by Henri Nestl
Nestl S.A is a Swiss multinational nutritional, snack food company founded and headquartered in Vevey, Switzerland Nestl has around 450 factories, operates in 86 countries, and employs around 328,000 people. It is one of the main shareholders of L'Oral, the world's largest cosmetics company.. NIL (Nestle India Ltd) - the Indian subsidiary of the global FMCG major. It is the largest food company in the world measured by revenues.

NESTLE house in Gurgaon, Haryana Introduced the maggi brand in 1982. Entirely new food category-instant noodles- Indian packaged food market.

Started offering new healthy products under maggi.

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NESTLE- Variants
Candy and Chocolate
Munch Butterfinger Carlos V Chunky Nestle Crunch Nips Raisinets Runts Sweet tarts Kit-Kat Bar one Frozen Foods Lean Cuisine (frozen meals) Hot Pockets (sandwiches)

Ice Cream

Dreyers (ice creams, frozen yogurts, frozen fruit bars) Nestle Push-Ups The Skinny Cow (ice cream treats)

Pet food

Alpo Frosty Paws (dog ice cream treats) Gourmet

Baking

La Lechera (sweetened condensed milk) Libbys Pumpkin Nestle Tollhouse Morsels and baking

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NESTLE- Variants
Beverages
Coffee-Mate Jamba (bottled smoothies and juices) Milo Powdered Beverage and Ready-to-Drink Nescaf Nesquik Nestea Nestle Juicy Juice 100% fruit juices Nestle Milk Chocolate

Specialty items:

Maggi Seasonings Maggi Taste of Asia

Baby Foods:
Cerelac Nestum Boost

Bottled Water:
Arrowhead Perrier Pure Life Vittel

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Maggi Story
In Switzerland 1863, a genius called Julius Micheal Johannes Maggi developed a formula to bring added taste to meals. This marked the beginning of the Maggi brand and its lines of convenient food products. The original company came into existence in 1872 in Switzerland, when Julius Maggi took over his father's mill. In 1882, the Swiss Public Welfare Society commissioned Maggi to create a vegetable food product that would be quick to prepare and easy to digest to help with the problem of women having less time to prepare meals as more and more worked outside the home. The results two instant pea soups and an instant bean soup were a huge success. Maggi is an over 100-year-old Nestl brand of instant soups, stocks, bouillons, ketchups, sauces, seasonings and instant noodles. Maggi merged with Nestl in 1947. Maggi has been offering high quality and innovative products ever since.

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Market share
Category that is growing at 20% annually. Maggi still rules with more than three-fourths of the 2,500 cr market in the bag, as of September 2012. Hindustan Unilever Ltd (HUL) HUL, which has extended a soup brand into the category, may be having trouble convincing consumers that Knorr is also a noodles label Glaxo-SmithKline Consumer Healthcare (GSKCH) According to a Edelweiss research report, Foodles' contribution has dipped roughly 24% year-on-year and the company has shifted focus to niche multi-grain offering, which earns higher gross margins but does not compete in the mass noodles segment. ITC - Yippee has done well to grab a double-digit share.

Nissin Foods Top Ramen Top Ramen from Nissin Foods of Japan, which entered the country way back in 1988, has a 4.3% slice of the pie CG foods (Chaudhary Group) Wai Wai noodles Wai Wai brand of noodles claims it is has been able to beat Maggi in the north east. Wai Wai has a 65% market share in West Bengal and the north east. Wai Wai is also the second largest noodles seller in India with a 16% share (he pegs Maggi's share at 62%). "Wai Wai sells 20 lakh packs of noodles per day of the week. * From 28th Nov 2012 article Maggi still rules the roost from economic times

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Maggi as an international culinary brand

Maggi is the leading culinary brand in Asia. Worldwide leader in flavor and meal enhancement. Known Internationally as the trusted brand in consumer and professional kitchens. Almost 89 percent of chefs in Hong Kong-the center of Chinese culinary

excellence-use Maggi products in their meal creations.

The market leader in People's Republic of China, Philippines, India, Vietnam, Malaysia and Thailand. Maggi is also an ingredient deeply-rooted in traditional cooking throughout Latin America and the Caribbean. The brand is popular in Australia, India, South Africa, Brazil, New Zealand, Brunei, Malaysia, Singapore, Sri Lanka, Bangladesh, Fiji and the Philippines.

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Maggi-INDIA
NESTLE introduced maggi brand in INDIA in 1982. With the launch of maggi noodles, NIL created a new food category in Indian packaged food market. In India, Maggi became a popular snack food product.

In fact, "Maggi" has become a generalized name for instant noodles in India and
Malaysia.
In India, Maggi instant noodles are a favorite for an anytime meal, from dorm rooms of colleges to late-night cooking in home kitchens. It is so popular that many people in India call noodles 'Maggi'.

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PRICE

4Ps

Considering the price points in the market for Maggi, it should continue to position itself in the "snacks" category itself, since few would be willing to

accept it as a meal (Indian Consumption Habits - Noodles still arent taken

as proper food item). Millipacks (Rs 5) targeting lower middle class & also people who consume less. Affordable by all income groups. Multipacks at cheaper price.

PLACE

Wide distribution network

Easily available in all kirana stores, retail store etc. Market share
Targets hawkers/roadside eating joints

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PRODUCT

Quality Models and sizes Packaging Brands

Service

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PROMOTION
Changed their advertising campaign- focus on health and nutrition.

Focused their ads on childrens taste and health

Sales promotion in schools and offices.

Distributed free samples during new launches.

Invited housewives to send new innovative recipes. Maggi is now targeting its products at the entire family and not only kids Maggi launched Main Aur Meri Maggi campaign in commensuration of 25 years of Maggi in India

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STPD of Maggi Segmentation

Segmented the market on the basis of lifestyle and eating habits of the Indian consumer. Focus mainly on age and appetite of the urban families.

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TARGETING
Target audience Kids Youth Working women & Family now It helps mothers with the promise of fast to cook and good to eat snacks. convenience savvy time misers

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POSITIONING
Positioned their product with the well known slogan 2minute noodles taste bhi health bhi Easy to cook, good to eat Positioned their product as to get fast relief from hunger.

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DIFFERENTIATION
Taste Flavours Packaging

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Strengths Established Family Brand Strong Global Corporate Brand ( NIL ) Strong distribution network 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. Research and Development Division in India New Noodles Plant in Uttaranchal Weakness Generic Brand to Noodles in India Low rural market presence constraints Health related issues Opportunities Growing package and canned food market in India by 15% annually. Rural markets unexploited 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. 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 ITCs strong base in Indian Market.

SWOT Analysis

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Maggi Marketing strategies

1997 1999 - Nestle changed the taste of Maggi noodles, but it proved to be a failure. Maggi reintroduces the old formulation and revived sales with the punch line- Fast to Cook, Good to Eat. 2000: Maggi noodles became the leader in instant noodles space. 2005: Marketing strategy to keep Maggi brand fresh and as a health product with its tagline Health Bhi -Taste Bhi with the launch of Maggi Atta noodles.

2009- Maggi celebrates 25 years of Maggi noodles in India with Me and Meri Maggi campaign and the launch of Maggi Pazzta. (This campaign invited consumers to share their Maggi moments. As a part of this promotional drive, maggi launched a website, where the consumer could upload their Maggi moments and their favorite recipes or stories hit with the company will get a chance to be featured on Maggi packets or ads)
2012 Maggi has generally stayed away from the celebrity endorsements. In general, mother and child have been the celebrities for Maggi for the longest time. With its only exceptions, when Preity Zinta promoted the Rs.5 Chotu Maggi and the family packs. Recently, Amitabh Bachchan has been made the brand ambassador of Maggi. Maggis Do minute Mein Khushiyan Of late, the brand had been facing some competition from other brands. Big B in the new campaign is a story teller who narrates the stories given by the consumers. The aim is to bring back the segments of consumers who moved away from the brand since they have grown up. A powerful celebrity as a brand ambassador adds a big boost which is the need of the hour for Maggi with so many competitors around.

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Competition
During 1990s, the sales of Maggi Noodles declined and this was attributed partly to the growing popularity of Top Ramen. Also they are having a strong competition with local manufacturers Maggi is also facing competition with the Chowmin

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Market penetration strategies

Promotional campaigns in school Advertising Strategies Availability in different pack sizes New product innovations

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Image of Brand Maggi

To sustain the image of the brand maggi, Nestle has adopted the 360 degree marketing strategy:

Promote themselves as health product

They promote the product with whom customers can play with, according to their taste They also give the opportunity, of posting the recipe to the women They also have organized various small events for the kids They have spent huge amount on advertising in electronic and print advertising

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Target Customer
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 (Wrong

approach) To get to the root of the problem, NIL conducted the research, which revealed that it was children who liked the taste of Maggi noodles and who were the largest consumers of the product. (Correct approach Repositioning Strategy)

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INTEGRATED MASS COMMUNICATION

ADVERTISING

PUBLIC RELATIONS

SALES PROMOTION

INTERACTIVE MARKETING

ADs

AD CAMPAIGNS

BILLBOARDS

PRINT ADs

TV ADs

OTHER

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MAGGI FIRST AD AND TAGLINE

FAST TO COOK! GOOD TO EAT!company name

TV Commercials

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PRINT ADS
Maggi does not focus heavily on print media during its launch since its initial target audience was mothers and kids. Some advertisements in the print media were used to highlight the convenience factor of Maggi. Maggis expenditure on print media is much lower compared to other media. Maggi introduced this advertisement in various magazines in 2003to celebrate 20 years of its years of its product in India. Maggi rice noodles mania had the highest column centimeter in print during jan

aug 07 among the instant foods category. Growth in noodles/pasta print

advertising grew by 42% in jan-may05 compared to jan-may 04. Of this, maggi vegetable atta noodles had 92% share.

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Sales Promotion
Objectives To introduce new products To attract new customers and retain the existing ones To maintain sales of seasonal products To meet the challenge of competition Tools Exchange schemes Price-off offer Coupons Scratch and win offer Money Back offer

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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. 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 4piece pack with that of 36 instead of 40.

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Display
Large pack sizes at the top with decreasing pack sizes as going downward. Why? This is because that for a retail outlet the more value is generated large pack thus they try to project big size at convenience place.

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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 5wrappers 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 sketching.

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RESULTS OF PUBLIC RELATION ACTIVITY

Getting closer to regular customer. Boosted the sales. Making valuable direct marketing database. Recently, again, they have started Maggi fan club. This time it is operating online and they are providing user name and password.

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PROMOTION MIX

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MESSAGES
MAGGI NOODLES MAGGI 2-MINUTE Noodles. "Taste Bhi Health Bhi. MAGGI RICE NOODLE MANIA Chaska Taste ka, Health Rice ka. CUPPA NOODLES Just add Garam Paani Carry on Jaani

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RESEARCH METHODOLOGY
OBJECTIVES To understand the influence of Maggi as a brand on consumers mind set. Sources of Brand equity of Maggi like Brand awareness, Brand image,

Brand association, Brand recall

To understand the Brand performance of Maggi products. To understand Brand Imagery, Brand Quality perceived by customers, Brand credibility, consideration, superiority and feelings. Brand Extension of Maggi in terms of product diversity. Analyse the repositioning of Maggi brand as a Healthy product and the consumers perseverance towards the same.

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Research Plan
Sample Size: The sampling unit is 300 which are divided as follows:
Number of respondents Age-group Monthly Household Income Survey Location 300 10 - 45 25000 - 75000 INR Mumbai No income 50 25K - 40K 100 10 - 25 100 40K - 60K 100 25 - 35 100 60K - 75K 50 35 45 100

Salary Group No of Respondents Age Group Number of Respondents

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Information Areas
The objective as spelt out can be elaborated into specific information areas to be studied.
How do customers perceive Maggi as a stable brand, their perception of noodles and how do they associate themselves with Maggi? Are the consumers aware of Maggi Brand or they associate noodles with some other brand? Do they consider noodle as a healthy product or they are aware of the companys strategy of repositioning it to a healthy product by the launch of some of the new products? Which product from the entire basket of Maggi products do the consumers consider as the best selling product for Maggi and to which the consumers frequently buy? Are the consumers willing to accept Maggi brand extensions to some other products like chocolate, juices, chips etc?

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Brand Association
Sources of Brand equity like brand association of Maggi as a Brand was found highest with the age group of 10-25 and the product category associated with it was the noodles category ( see exhibit 1). Consumers in the age segment of 10-25 could easily relate Maggi to noodles. Brand Association(Agewise)
80 70 60 50 40 30 20 10 0 Noodles Fast Food Snacks None of These
90 80 70 60 10yr - 25yr 25yr - 35yr 35yr - 45yr 50 40 30 20

Brand Association(Incomewise)

Noodles
Fast Food Snaks None of These

10
0

No Income

25K - 40K 40K - 60K 60K - 75K

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Brand Recall
From the Exhibit 3 & 4 given below it seems a clear trend that Maggi has a good brand recall as compared to its competitors like Top Ramen, Surya noodles etc. Consumers could easily associate Maggi with noodles.
In the Age wise category, the respondents of the age group of 25-45 were highly cautious of Maggi brand and seemed to be consuming Maggi more as compared to other age segments. Brand Recall(Agewise)
70 60 50 40 10yr - 25yr 25yr - 35yr 35yr - 45yr 80 70 60 50 40 30 20 10 Maggi Top Ramen Sunfeast Yippie Anil Noodles 0 No Income 25K - 40K 40K - 60K 60K - 75K Maggi Top Ramen Sunfeast Yippie Anil Noodles

Brand Recall(Incomwise)

30
20

10
0

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Brand Awareness
It was evident that Maggis Brand awareness was very high in terms of noodles i.e. around 65 %of the respondents associated maggi as noodles and only 20 % of the respondents knew Maggi as a Ketchup, 9% as soup etc. The trend indicated that Maggis brand extension strategy to increase its basket has not been quite successful in other food segments .This might be because of the larger share of market captured by the competitors hence Maggi has a high potential in markets like ketchup, soups etc.

Masala 6% Soup 9%

Brand Awareness
Ketchup 20%
80 70 60 50

Brand Awareness(Agewise)

10yr - 25yr 25yr - 35yr 35yr - 45yr

Noodles 65%

40 30 20 10 0

Ketchup

Noodles

Soup

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Repositioning Maggi as a healthy product

The companys strategy to reposition Maggi as a Healthy product was not found conducive as per the survey results. From the pie chart given below it can be clearly seen that Maggi is still perceived as a non healthy products by the consumers. Also out of the different noodle variants, Maggi regular still has the highest awareness.

Perception of Maggi Noodles

As a Healthy Product 40% As a non Healthy Product 60%

Maggi rice noodles mania 7% Maggi dal atta noodles 14%

Others 3%

Repositioning Awareness

Maggi masala (Regular) 53%

Maggi vegetable atta noodles 23%

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Few Smart Ads By Maggi

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