NESTLE

THE BRAND MAGGI

BY:-

MANU SHARMA

ROLL NO-20

Outline of the Presentation

Nestle Company Profile and basic Product

Category

Maggi Noodles-

Market Share, Initial Strategies

Product Protection

PLC, SWOT & STPD Analysis

Market penetration Strategies & hurdles faced

Current Scenario & suggestive Promotional

suggestions

New campaign launched celebrating 25 years

ABOUT NESTLE

The company dates to 1967 when 2

separates Swiss enterprise were founded

that would later form the core of nestle

Basically the company started to meet the

need of the milk in world war one

Henri Nestle developed a milk based

baby food and soon began marketing it

was the 1st product of nestle

Nestle and it works

• Nestle and the international red cross have

announced a partnership deal for interventions in the

HIV crisis in Africa

• Nestle continues to violate the world health assembly

marketing requirements for baby foods in a

systematic and institutionalized manner

• Nestle encourages the use of dangerous whole milks,

such as its nido and ninho brands by permitting them

to be displayed in pharmacies and supermarkets in

the baby feeding section in some countries

Nestle Product List

Nestle Milkmaid

Ice cream

Syrups

Jams

Honey

Candies

Berries

Nestle Natural Dahi

Nestle Slim Milk

Nestle Munch

Nescafe Sunrise

Smart Plus

Nestle Milo

Nestle Iced tea

Nescafe Cappucinni

Maggi Pichkoo

Maggi Pizza Mazza

Maggi Sauces

Type Public

Founded Switzerland 1866

Founders Henri Nestle

Head quarters Vevey

Area served World Wide

Key people Peter Brabeck Letmathe (Germany) and Paul

Bulcke (CEO)

Industry Food Processing

Products

Revenue CHF 109.9 Billion(2008)

Operating Income CHF 15.68 Billion (2008)

Profit CHF 18.04 Billion (2008)

Total Asset CHF 106.2 Billion (2008)

Total Equity CHF 54.92 Billion (2008)

What is brand name that comes to your mind when I

say the word Noodles?

Introduction to Maggi 2 Minute

Noodles

• It‟s a brand name of instant noodle made by Nestle India Ltd.

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

• Nestle launched Maggi for the 1st time in India in the year 1984

• The brand is popular in India, Malaysia, New Zealand, Singapore, South Africa, Australia

• 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 94% market share in this segment

• Over the years maggi has launched several products under its brand name

94%

4%2%

MAGGI TOP RAMEN OTHERS

Market Share

Initial Strategies of Maggi

• It has faced lot of hurdles in its journey in India

• The basic problem the brand faced is the Indian

psyche

• Initially nestle tried to position the noodles in the

platform of convenience targeting the working

women

• However the sale of maggi was not picking up

despite of heavy media advertising

• To overcome this NIL conducted

a research

Cont………….

• NIL promotions positioned the noodles as

convenience product for mothers and as a fun for

children

• The noodles tagline “fast to cook, good to eat” was

also in keeping with this positioning

• They promoted the product further by distributing

free samples giving gifts on return of empty

packets

Effective tagline communication

Product Protection in Market

The word “noodles” has been registered in the year

1984 by nestle India.

Maggi is the trademark for the noodles category

products from the year 1984.

PLC of Maggi

1983 1997

1999

2004

Loss/profit

Time

Gro

wth

Sales

Progression of product “life” stages (growth & time)

B

A

C

D

SWOT Analysis

Strengths Weakness Opportunities Threats

Market leader Heavily

dependent on

one flavor

Unexploited

rural markets

Strong

presence of

regional

competitors

Brand loyalty Minor

distribute

problems

Increasing no.

of working

youth

Competitive

pricing(top

ramen)

Distribution

channels

Health related

issues

Affinity of

Indians to

Chinese food

Innovative

flavors for

Indian taste

buds

Advertising

strategy

STPD Analysis

Segmentation-Based on Lifestyle and Habits of Urban Families

Targeting-Kids, Office Goers

Positioning-with statements such as 2 Minute Noodles and easy to cook and good to eat

Differentiation-Taste, Flavor, Packaging

STPD Analysis

Segmentation Targeting Positioning Differentiation

Age Kids Easy to cook, good to

eat

Taste

Eating habits Youth 2-minute noodles Flavors

Lifestyle of urban

families

Office goers Taste bhi health bhi Packaging

Working women

Health conscious

people

Michael Porters Five Forces Model

INDUSTRIAL RIVALRY- TOP

RAMEN, CHOWMEEN

NEW ENTRANTS-NO POTENTIAL

THREAT OF NEW ENTRANTS FOR

MAGGI NOODLES

BUYERS-CUSTOMER, MIND SET,

BRAND IMAGE

SUBSTITUTE-CHOWMEEN, FAST FOOD

SUPPLIERS-DISTRIBUTION, R/M SUPPLIERS,

PACKAGING

Market Penetration Strategies

Promotional campaigns in school

Advertising straight-focusing on kids

New product innovation according to the need of

consumers-veg atta noodles, dal atta noodles,

cuppa mania

Availability in different packages-

50,100,200gms,400gms-family packs

Conducting regular market research

Hurdles Faced

• Sales saw decline in 1990-formulation changed

from fried base to air dried base

• Competition increased in noodle segment-top ramen

• New product launched in market but failed-dal atta

noodles sambhar flavor

• Maggi launched some new products in their brand

but these products not successful-ketchups-soups-

tastemakers etc

Current Scenario of Maggi

Leading brand in India as well as world

Reasonable competitive price

Creative interaction blogs for customers-

www.maggi-club.in

Focus mainly on health benefits

Suggestive Promotional

Suggestions

• Focus on creating distinctive image, based on twin

benefits of instant and healthy with emphasis on

health conscious and rural market

• Conduct promotional campaigns at schools in small

towns with population not more than 1000

• Strengthen the distribution channel of the rural

areas within 100km of all the metros

Some More……

Launch new advertisement campaign(tv, radio,print

media commercials) with the brand ambassador

Conduct market research to find out the market

penetration of the product in the rural area covered

Maggi turns 25, Nestle to unveil new

campaign

Nestle India is set to roll out a new marketing drive to mark the 25th anniversary this week of its instant noodles brand, Maggi Called „Me & Meri Maggi‟, the campaign is supposed to celebrate the consumers‟ bond with brand Maggi. The company plans “360 degree activation” across television, print and the internet, beside on-ground activities.

Nestle has launched an interactive website for the consumers, www.meandmeri.in

Maggi turns 25, Nestle to unveil new

campaign

The packaging has been tweaked to accommodate

the pictures of consumers whose entries the

company chooses. “If a consumer has a story to tell

about Maggi, we can put him or her on the

packaging, TV or print,”

In 2008, two brand extensions — Maggi Bhuna

Masala and Maggi Cuppa Mania Instant Noodles

THANKS…………