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Noodles Market In India

Submitted by:Nirpeksh Joshi(65), S S KARTHIK VIGNESH(86), SUMEET SUMAN(106),

SWAPNIL S BHURE(109), VIVEK TIWARI(117),SANJAY KUMAR JENA(120)

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AGENDA• INTRODUCTION OF NOODLES MARKET• MARKET SEGMENTATION OF NOODLES IN INDIA • HISTORY OF MAGGI IN INDIA• LAUNCH OF GSK FOODLES • COMPARISION OF MAGGI AND FOODLES• SWOT ANALYSIS OF– MAGGI – FOODLES

• ANALYSIS OF THEIR STRATEGY ON BASIS OF THEIR SWOT ANALYSIS

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Noodles Market in India

• In 1863, Julius Maggi developed a formula to add taste to meals as Maggi

• Maggi as the first noodle entered into market in 1982 by Nestle India Ltd.

• Top raman in India was introduced by Nissan in 1991 • In 2000 maggi faced market recession by introducing economy

packets in India• Maggi Noodle was Market leader with around 80% market share in

in 2005 in Indian Market.• In 2005 Maggi brand worth was 3.7 billion• Maggi was the highest spender in Promotions

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• The instant noodles market in India is valued at around Rs 1,000 crore.

• The category is growing at 20 per cent annually.

• Maggi is the market leader with a share of over 70 per cent.(src.-Business Standard)

NOODLES MARKET IN INDIA

Noodles Market Players By Nissan

GSKSunfeast

Masan GroupChaudhary

group

HUL

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Some other players in this market include

– Capital Foods (Ching’s Secret and Smith & Jones),– Future Group (Tasty Treat)– CG Foods (Wai Wai)

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Maggi91%

Foodles3%

Others2%

Market share in Dec. 2009

Player Maggi Foodles OthersMarket share in Dec. 2009 91% 3% 6%

Maggi87%

Foodles6%

Others7%

Market share in June 2010

Player Maggi Foodles OthersMarket share in June 2010 87% 6% 7%

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Some Players are…..

• Introduced in 1982 in India under the banner of Nestle

• In 1863, Julius Maggi developed a formula to add taste to meals as Maggi

• It has 72% market share in noodles segment

• Publicity with the punchline

• “Taste bhi,Health bhi”

• Introduced in 2009 in India under the banner of GSK

• Entered into instant noodles segment under the popular Horlicks brand

• It is expecting 6-10% market share in this year

• Publicity with the punchline

• “Noodles without-theNO”

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Strength •Market Leader•Brand Loyalty•Distribution Chaneel•Innovative flavours for Indian taste buds•Advertising strategy

weakness•Heavily dependant on one product•Minor distribution problems•Health related issue

opportunity•Unexploited rural market

•Increasing number of working youth

•Affinity of Indians to chinese food

Threat

•Strong presence of regional competitors

•Competitive pricing

SWOT Analysis of Maggi

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SWOT ANALYSIS OF FOODLESSTRENGTH

Brand recognizationSmaller pGetting the advantage of having healthcare background.Innovative packaginging

WEAKNESSThe price is high as compared to the competitors

OPPORTUNITYHitting the rural areas.

THREART Targeting the rural market and maggi is the top player in the segment.New in the market.

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Market Penetration Strategy of Maggi

Promotional campaigns in school

Advertising strategies:

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 gm, 100 gm.,200 gm, family packs 400gms.

Conducting regular market research

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Promotions and Advertisements

Maggi Foodles

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PROBLEMS BEFORE MAGGI• Maggi sales is declining in 1990s• Competition increased in noodles segment• New product in market but rejected by

consumers, due to taste• Maggi launched some new products under

their brand, but these product were not so successful

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Solutions for Maggi

• They launched the campaign, “taste bhi health bhi” now its because synonymous with maggi

• They changed the jingle of maggi instant noodles campaign , it was pretty catchy and went down well with the target audience children.

• Nil started offering a healthy product to its consumers because they know very well that , if they have to tap the Indian consumer they have to focused mainly on the health benefits.

• The company focused on wellness and nutrition factor to establish a new product category.

• The company moved away from the ‘not –so –healthy’ Maida to make its noodles and launched the maggi veg Atta noodles followed by the dal atta noodles and finally the very recent rice noodles variants

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Pricing strategy

Maggi • Maggi has different packets

according to variety in demand

• They have considered both rural and Urban markets

• Maggi’s 80 gm is available for Rs 10 .

Foodles • with only single-pack sizes

and larger family packs of eight and four strips will rolle out nearly

• They have considered Urban market only

• Its multigrain variant costs Rs 15 for 80 gm

• it reaches 600,000 retail outlets directly and another 1 million through distributors

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BCG MATRIX ANALYSIS

Star indicates High groth rate and high market shareUse large amount of cash and are leaders in businessGenerate large amount of cashRequire investment to maintain their leadIf successful it will become cash cow when industry matures

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BCG MATRIX ANALYSIS

Products with low market shareOperate in higher growth marketsRequire substantial investment in order to grow market shareCompany can invest to increase market share

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