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Objectives of project

•The first objective for the study and research of Nestle India Limited (NIL) is to
know the Market Penetration Strategies of company. And to find out the feedbacks
given by the peoples in response of these strategies.

•The second objective is to know the reasons behind the failure of new products.

•The other objective of my project is to find out the pricing techniques of the
company.
Company’s Introduction:
Nestle India Limited(NIL) is the market leader in Indian Noodle Market with it’s Maggi Brand of
Noodles which was pioneer brand launched in 1983 in the packaged food market of India. It took the
challenge and established Maggi in Indian market, considered to be conservative and typical about
food consumption. Its appropriate realization of target segment, effective positioning and effective
promotion and sales made Maggi to Noodles in India as Xerox is to photocopier.

Nestle India Limited had introduced sauces, ketchups and soups under Maggi brand to reap benefit of
brand popularity and image, and contribute to financial gains by 1990.Maggi also became successful
in sauces, ketchups and soups Market in India. Though Nestle India Limited tried to extend to other
ready to eat products like pickles, cooking aids and paste, it was unsuccessful, so dumped those

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

Competitors:
•Maggi is competing with:
•Heinz Sauces and Ketchup
•Knoor Soups
•Kissan Sauces and Ketchup
•Top Ramen
• Sunfeast Pasta Wai Wai in corresponding categories of products and variants

Nestle India Limited promotions positioned the noodles as a convenient product for mothers as it
takes only 2 minutes to cook and it’s very easy to cook as well. All that it takes it to boil water
and add Maggi noodles and masala in it which is provided in the packet itself. And it is
positioned as fun for the children as they eat it with fork and sause and those noodles are very
enjoyable while eating. Hence the tagline “fast to cook, good to eat” best suits the promotional
strategies. They promoted the product further distributing free samples which helped mothers to
try cooking once and realizing how convenient it is in cooking. And whether their children like it
or not. And they actually found it amazing. NIL promotions gave gifts on return of the packets
which by default attracted the people towards it. Hence it led to effective tagline communication
for Maggi.

Nestle India Limited had to give the protection for this product as they saw the success of this
product in the market. Hence they opted to go for the copyrights. The word ‘noodles’ was
registered in the year 1984 by NIL. Hence Maggi became the trademark for the noodles category
products from the year 1984. After this copyright the growth of Maggi product got an amazing
bounce and in 1997 the growth of the product topped the market. It fell a bit in 1999 and gained
boomed in 2004.
Scope of analysis
SWOT Analysis
Strengths
•Market leader in the noodles category. Anytime anyone prefers Maggi as noodles.
• It has a huge brand loyalty.
• It has developed the huge distribution channel network over thousands of distributors, retailers
etc. hence Maggi is available in every shop right from the supermarket till food malls.
• Innovative products for Indian taste buds such as Maggi, Maggi masala, chicken Maggi, tomato
flavor which helped them grabbing more market as customer needs variety and they loved those
flavors as well.
• The advertising strategy for Maggi was a super hit as their tagline itself was very effective and
grabbed the consumer’s mind.

Weakness
The weakness of the product was it was earlier heavily dependent on only one flavor which
consumers get bored after a time and stops buying the product which hits the market sales of the
product. It contains Maida, so there are some health related issues for this product such as
constipation and it does not give sufficient required proteins and vitamins to children.
Opportunities

• The greatest opportunity for the product Maggi is their


• Unexploited rural markets as so far they have mainly targeted cities and developed areas.
• Number of youths working nowadays are increasing rapidly, so they can open new branches
and employ these people and increase production and their by sales and profits by targeting rural
markets.
• Increased affinity of Indians towards chinese cuisine creates new opportunity for Maggi to
improve its taste further and capture large market share.

Threat
• Presence of regional competitor’s e.g Top Raman, Ching’s noodles.
• Price war strategies adopted by other brands like Top Raman.
STDP Analysis
Segmentation
It is based on lifestyle and habits of urban families depending on their
Consumption per week, type of flavor sold etc.

Targeting
Kids, Office goers are their main targets as it is very easy to cook and less time
Consuming office goers prefer it. And kids love its taste

Differentiation
Different taste for different flavors and attractive packaging has helped them to
Differentiate their product from others.
Michael Porters Five Forces Mode

Positioning

With statements such as 2 min noodles, easy to cook and good to eat, they crate their own
position in the market, and their tagline is the most effective way to get the positioning done.
Market Penetration Strategies:
Maggi started with promotional campaigns in the school to see the reaction of children after
eating Maggi.

•They started their advertising straight focusing on kids.


• The products are made available in different packages like 50,100,200,400 Gms.
•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 will put him or her on the
Packaging, TV or print,”
• They introduced new products like atta noodles dal atta noodles cuppa mania.
Keep on conducting market research to understand changes in market. Though Maggi has been
successful every time, there were times when it faced challenges. Some of these are:

•Sales saw decline in 1990: The Company saw a decline in the sales in 1990. When the company
tried to find out what the reason was, they came to know that there was some thing wrong with
the formula that spoiled the taste. So the formula was changed from fried base to oiled dried base
• Competition increased in noodle segment: When Maggi was enjoying being the only noodle
offering by any company Top ramen entered the market as a competition. This was a big
challenge for Maggi. Though Top Ramen couldn’t do well in India
• New product launched in market but failed- Nestle decided to expand its offerings by offering
Dal atta noodles & Sambhar flavor noodles. But these products were not welcomed by the people
the very special taste of Maggi was still ruling the consumer
•Maggi launched some new products: Ketchups, Soups, Taste makers etc. but they were not
successful

Current Scenario:
Maggi right now is a leading brand in India as well as world. It has successfully established itself
as a noodle brand that can be made in 2 minutes and can be cooked very easily. The simple
process of making and different taste makes it most loved noodle brand.

Reasonable competitive price gives it another advantage; packs of every size and pack are
available in the market. Nestle has priced it in such a way that it has always been affordable to
the consumer

The company has a creative interaction blogs for customers where people can discuss about
various topics if any problem is discussed about the product the company gets to know it. Direct
and continuous contact with customers is maintained at .www.maggi- club.in

Maggi normally focuses mainly on health benefits; it not only wants itself to be tasty but
nutritious as well. This is the reason why it always keeps on adding nutritional value to it.
Maggi turns 25; Nestle comes up with new campaign

Nestle India is out with a new marketing drive to mark the 25th anniversary in year 2008 of its
instant Noodles brand, Maggi Called Me & Meri Maggi, the campaign is celebrating the
consumer’s bond with Maggi. The company is doing“360 degree activation” across television,
print and the internet, beside on-ground activities. Nestle has also launched an interactive
website for the consumers, www.meandmeri.in

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 will put him or her on the
Packaging, TV or print,”
Suggestions: Promotional Strategies
•Maggi should focus on creating distinctive image of its own based on twin benefits of being
easily & instantly ready to be made
• It should conduct promotional campaigns at schools in small towns with population not more
than 1000
• It should strengthen the distribution channel of the rural areas within 100km of all the metros.
• It should launch new advertisement campaign (TV, radio, print media commercials) with a
brand ambassador or mascot

So we can see that Maggi has a story of it’s own to tell. A story with success & failures. A story
where Nestle gave the country something to eat, that it had not eaten before and now the country
loves it so much that it has become one of the most well established brands as well as a part of
many household. We can conclude that Maggi as a brand has a long way to go.