MARKETING SALES & MANAGMENT | September 17
2012
| * Introduction to Nestle, * Maggie-Brief History, * Brand Extension,Repositioning * Maggi Products * Segmentation,Targeting,positioning * Promotional Strategy * SWOT Analysis * Success story * Improvements | Maggi Case Study |

Harpreet Kaur

INTRODUCTION
TO
MAGGI
Maggi noodles is a brand of instant noodles manufactured by Nestlé. The brand is popular in Australia, India, South Africa, Brazil, New Zealand,etc Maggi noodles are part of the Maggi family, a Nestlé brand of instant soups, stocks, and noodles. In Malaysia, there are fried noodles made from maggi noodles known as Maggi goreng. Maggi noodles also introduced a new variety of its noodles, to cater for the health conscious like 'No MSG', 'Less Salt', and 'No Trans fat'. A wholewheat 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.
"Maggi" has become a well-known brand for instant noodles in India and Malaysia such as curry and chicken flavoured noodle soup.
Nestlé India Ltd (NIL) offered a variety of culinary products such as instant noodles, soups, sauces and ketchups, cooking aids (seasonings), etc., under the Maggi brand. of these, instant noodles had been NIL's main product category in the culinary segment since the launch of Maggi 2 Minute Noodles (Maggi noodles) in 1982. Over the years, Maggi noodles became a popular snack food product in India. In fact, the word "Maggi" has become a synonymous term for any brand of instant noodles in India.
Claimed to be "2 minute noodles", The Maggi noodle cake and seasoning is added into boiling water for two minutes and it is ready for consumption. Egg, seaweed, boiled vegetables or lemon can also be added to the noodles for a better flavour.

Brand Extension and Repositioning

Nestle India Ltd. (NIL) is the Indian subsidiary of the global FMCG major, Nestle SA.
Maggi Brand was introduced to the Indian consumers by NIL with the launch of Maggi 2 Minute Noodles, an instant food product.

* The main reason behind the brand extion was that families were more health conscious.So the Maggi extended their brand for attracting the families.

* The other reason behind the brand extension was the competition with other competetors such as Kissan and Heinz ,as well as smaller regional competetors such as Tops.

In 1982. With the launch of Maggi noodles, NIL created an entirely new food category - instant noodles - in the Indian packaged food market. 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. Over the years, NIL extended the Maggi brand to a variety of culinary products like soups, sauces and ketchups, and cooking aids among others. In 2005, NIL started offering a range of new 'healthy' products under the Maggi brand, in a bid to attract health-conscious consumers.

SUCCESS STORY

* Strong distributing channel * Affordable prices. * High Brand recall /Brand loyalty * Innovative flavours for Indian taste buds.

* Now the people are taking healthy products positively. * The Lifestyle of people have been changed. * The launch of new variant of maggi became success. * The company has adapted right strategy at the right time.

MAGGI PRODUCTS

NIL extended Maggi brand to a variety of culinary products like:

Maggi Noodles: * Two Minute Noodles * Vegetable Aata Noodles * Dal Aata Noodles * Rice Noodle

* Maggi Sauces * Maggi Healthy Soups * Maggi Healthy Soups-Sanjeevni

Maggie-2-minute Noodles is one of the largest and most loved food brands that defines instant noodles in India.
Continuing to spread joy as it has done for the last 25 years,our favourite magi is as tasty as ever and even provides essential nutrients for all stage of your life .With the goodness of protein and calcium ,Maggi noodles is available in 4 delectable flavours-masala,chicken,tomato & curry.

An offering that exemplifies “TASTE BHI ,HEALTH BHI” .
Maggi Vegetable atta noodles is tasty because it is loaded with everyone’s favourite MAGGI “masala” and healthy because it has more real vegetables and is packed with the power of fiber.

Maggi cuppa mania is a combination of all the above.Maggi cuppa mania comes in two mouth watering flavours-masala yo and chily chow packed with real vegetables.
Just add “garam paani” to the noodles and they are ready to eat.

STPD Analysis

PROMOTIONAL STRATEGIES OF NESTLE
(MAGGI)

* For sustaining their image Nestle introduced several ready-to-eat meal variants and frozen foods in the market .Like:

* Various desi sub segments such as the traditional Dal Aata,Veg Aata and Rice Noodles along with their various variants,Curry,Masala,Tomato,Chicken in the traditional segment and shahi pulao,,lemon masala and chilly chaw in the rice noodle segment.

* For sustaining their image Nestle invited housewives to send new innovative recopies made from maggi.

* Nestle made the slogan “Bus 2 min” .It helps mothers with the promise of “Fast to cook and good to eat” snacks.

* It added the bit of “different “ to the popular ketchup..AAnd offered “Health bhi,Taste bhi” through its no-MSG soups.

* Nestle also followed up these launches with “Its different “ ad campaigns.

* Nestle focused their ads based on children’s taste and health.

* Nestle also used the strategy of brand extension for attracting more customers because every customer have different choices.

* Nestle also used various variants of the product to increase the uses of the product.

* Nestle spend a huge amount of work to maintain the same taste and nutrition of the product.

INTODUCTION TO NESTLE

Nestle is a multinational packaged food company founded and headquatered in Vevey,Switzerland.
It results from a merger in 1905 between the Anglo Swiss milk company for mil products established by the page Brothers in Switzerland,in1866 and the Farine Henri Nestle company set up in 1867 by Henri Nestle to provide an infact food products.

Several Nestle’s brands are globally renowned ,which are not only in the local but also in the global market leader.Nestle is the market leader in the following product category: * Milk * Choclate * Confectionary * Coffee etc.

Journey of Nestle India

* 1959- On 28th March ,the company was incorporated at New Delhi.

* 1987-During the year installation of a new factory at Nanjangud (Karnataka) ,for the manufacture of instant coffee was in progress.

* 1989-The name of the company was changed from “Foos Specialities Ltd.” To Nestle India Ltd.”.

* 1997- NIL is one of the top players in the processed food and beverages and the largest producer of instant coffee with a 49 percent market share.

* Nestle’s wafer chocolate brand ,Kit Kat, which created a major dent in the market with its launch ,its international milk drink brand Milo has garnered a mere 3% share in Rs 500 crore market, a year after its launch in India. * * 2000-In 2000,Nestle entered the domestic botteled water business and will launch the product under the brand name “PURE LIFE”.

* 2001- Nestle India Ltd. Launched “PURE LIFE” ,its mass market botteled water,adding one more premium brand to the already saturated Rs 600 crore bottled water segment.

* 2002-Tied up with Niligiris to co-brand various dairy products like dahi,paneer,ghee and possibly milk.

* 2004-Nestle India bags Tetra Pak’s annual dairy and beverage industry awards. * Nestle India signed on bollywood actress Preity Zinta to feature in its latest commercial brand Maggi.

* 2007-Nestle India Ltd. Launched new variants of Maggi.

IMPROVEMENTS

Nestle can introduce different new brand or acquire emerging brand in biscuits, chips and snacks category.

Maggi though has been able to differentiate itself from other Noodles, Maggi being taken as generic to Noodles is hampering other extended product category.Competitors have high grounds to capture the market differentiating then from being Maggi. It makes others possible product category vulnerable if lunched under Maggi.

So to avoid icrease of brands and introduce new products to capture opportunities in other snacks and ready to eat product category NIL has to introduce new branding strategy.

As pasta of ITC has been seen as products capturing the market of noodles and Maggi failing to lunch pasta under Maggi brand also support the argument for new brand introduction by NIL. As Indian Market is Brand conscious, other competitors are coming up with moreIndianized brand of products, and as Indian being more aware of their culture and large segment being typical and conservative about their culture, there care more chances that NIL would be successful if it create a brand close to Indian culture in wording to positioning. As India is growing, Old Indian Brands are also regaining momentumworldwide, NIL could catch the trend of market. By doing so, NIL could avoid the draw backs associated with the Maggi brand. It could position new brand in competition with other competitors brand where there is no fitof product with the Maggi brand. NIL other option is acquiring products manufacturers of different products like biscuits,chips and snacks as it is very essential for its market leader position. Other companies have advantage of such products. ITC has biscuits to it, Hindustan Lever has tea to it.India is huge market where distribution advantage plays major role and economies of scale pays back. So it is important for NIL to concentrate on other ready to eat category to benefit consumers from economies of scale reflect in price

SWOT ANALYSIS

* STRENGTH * Market leader in their segment. * Strong brand,loyal consumer base. * Wide range of distribution channel. * Product is according to the need of Indian consumer. * Innovative product.

* WEAKNESS * Generic Brand to Noodles in India * Low rural market presence constraints. * Uniform Brand for all food category * Brand Proliferation

* OPPORTUNITY * Increasing number of working youth. * Changing preference ofconsumer towards Chinese food and fast food.

* THREAT * Competitors with long history in product category Internationally like, HeinzSauce and ketchups of Heinz Indian, Top Ramen in Noodle and Knorr soups. * Price war with competetors. * ITC’s strong base in Indian Market. * Single product focused competitors like Heinz sauce and WaiWai Noodles.