Step 1 : Establish Overall Strategy or Objectives

Maggi aims at the following :

To inspire and offer tastier and healthier choices, in line with Nestlé’s commitment
to enable healthier and happier lives. Therefore Maggi aims to enhance the quality
of life and contributes to a healthier future.
Bring people closer by encouraging homemade cooking and for the family to
spend time together when preparing food at home. They also aim to help mothers
to prepare quick and easy meals for their family members.
“Good food, good life,” That is what it stands for.

Step 2: Segmentation Methods

Maggi uses Geographical segmentation , Demographic segmentation and
Psychographic segmentation.

Geographical Segmentation
Maggi being a global brand , does geographical segmentation. It has different
flavours in different countries . For example , Fusion Aromatic Spiced curry in
USA Masala flavor in India , Curry flavour in China , etc.
Nestlé has launched Maggi Fusian Range including three unique flavours —
Bangkok Sweet Chili, Hong Kong Spicy Garlic and Singaporean Tangy
Pepper after its deep understanding of Indian consumer preferences in
different regions.

Demographic Segmentation

 Age: Maggi targets children, youngsters and adults from 5 to 40 years old.
 Gender: Both Men and Women are on the target list of the company.
 Income: Maggi targets all level income groups.

Psychographic Segmentation
Maggi is also considerably segmented according to ‘Lifestyle and Eating Habits
of Consumers.’

 The ‘ 2 minute noodles’ works in the professional sectors for people with
busy work schedule, students living in hostels and people who have lack of
time.
 The Maggi ‘ Cuppa Noodles’ is perfect for people who are travelling. It is a
perfect meal for anywhere and anytime.
 Maggi targets people with a busy lifestyle and simple eating habits.
 Maggi Atta Noodles and Maggi Oats works perfectly for health conscious
people.
 Maggi targets people who prefer to eat non-vegetarian. Maggi chilli chicken
noodles is perfect for people who eat non-vegetarian.

Product Life Cycle of Maggi

Introductory stage : Nestle introduced the Maggi brand in India in 1982 , with its
launch of Maggi 2 Minute Noodle , an instant noodle product. Because of first
mover advantage , Maggi successfully managed to retain leadership in the instant
noodle category.

Growth Stage :

 The sales of maggi increased in this stage. It enjoyed around 50% market
share in the segment which was valued at around 250 crores.
 During 1990’s , the sales of maggi noodles declined due to popularity of Top
Ramen , another instant noodle product.
 To improve sales , it changed the formulation of maggi noodles in 1997.
However the consumers did not like the taste of new noodles.
 In march 1999, it reintroduced the the old formulation of noodles, after
which the sales revived. It also introduced several other products like soups,
cooking aids under maggi brand.

Decline stage :

 In 2015 , maggi noodles were banned in India as it was found that maggi
had harmful chemicals such as lead which could be dangerous to human
health. The National Food Safety Regulator had banned the sale of Maggi
noodles and directed Nestle to withdraw the product.
 From commanding 80% share of India’s noodles market Maggi went down
to zero in just a month.
 The 2015 Maggi ban was a big blow to Nestle, which took a hit of more
than 500 crore as it recalled and destroyed more than 35,000 tonnes of
noodles from 3.5 million retail outlets in June 2015.

However , in April 2016 Nestle cleared all tests and Maggi was declared
safe for consumption. The market share of maggi clawed back to 60%
in 2016 and till then maggi is at the growth stage with increasing sales.
To further the cause of improving food safety standards in the country, in
September 2017 Nestle partnered with FSSAI to open the first food
safety institute in Manesar.