THE PRESENTERS Monica Chalkil- 05 Rohan Chavan-06 Vaibhav Deshpande-08 Saiprasad Iyer- 15 Sheetal Kantharia-18 Mukesh Madani- 25 Rohan Shetty-49 1

What is the Brand name that comes to your mind when I say the word “NOODLES”? 2 2

CASE STUDY – MAGGIE NOODLES 3

INTRODUCTION to bring added taste to meals In 1863, Julius Maggie developed a formula to bring added taste to meals Nestle (Swiss company/1866/Henri Nestle). Maggi merged with Nestlé in 1947. Launched in the year 1983 Market Driver in the Instant Noodles Category

INTRODUCTION Malaysia, New Zealand Nepal, South Africa Maggi Australia, India Malaysia, New Zealand Nepal, South Africa Singapore, The Philippines India tops Nestle 50% market share 250cr Currently enjoys a market share of about 89% 5

MARKET FEASIBILITY Market Feasibility: Innovation seems to be the main theme as far as the Indian Noodle industry is concerned. Maggi has a commanding 90% market share. There is a huge scope for further penetration in the market. Maggie launched its instant noodle at Rs2.10; with a close to 100% margin.

MARKET FEASIBILITY Size of ready to eat market is approximately Rs.600-700 million 7

MARKET FEASIBILITY Competitors Analysis: Tapping New Market: Knorr Annapurna Soupy Snax tried its hand but failed. Top Ramen is the closest competitor. Then comes the normal chowmeen etc which Indians feast on. Tapping New Market: In several countries it is also known as “Maggi Mee". There is a huge unexploited rural market. There is a huge scope in it.

CURRENT SCENARIO - MAGGI Leading Brand in India as well as World. Current Sales: Approx. – 90000 boxes – Rs. 4,79,49,000 in Mumbai – 10,00,000 boxes – 55 cr. in India Reasonable competitive pricing. Creative interaction blogs for customers: – www.maggi-club.in Focus mainly on Health Benefits. 9

NEED RECOGNITION Good quality food Key needs of the Indian market – Good quality food Fast & easy to cook and hence convenient Different varieties Value for money 10

PRODUCT DIFFERENTIATION/ NEW PRODUCT DEVELOPMENT Original Flavour Chicken Curry Chicken & Corn Masala Dal Sambar Cheese Chatpata Vegetable Atta Noodles Shahi Pulao (Rice noodles) Chilly Chow (Rice Noodles) Lemon Masala (Rice Noodles) Cup Noodles – Hot Bowls Cuppa Mania – In India Tomato Stronger Chicken To survive in this market Maggi has been depending on variety in its flavour. Which has helped them maintain the leadership.

Maggi- PLC a: Introduction a-b: b- c : Re- Launch -d: d: 1983 1997 1999 2008 Time Growth a: Introduction a-b: b- c : Reduction in sales Re- Launch -d: Market re-capture d: Introduction of new variants a b d Maggi has not gone through the normal PLC because of constant, flavour innovation and variety. It changed its formulation in 1997. Which proved to be a mistake. Mid 1999 it reintroduced its old flavour.

SCA

SWOT ANALYSIS Strengths Weaknesses Opportunities Threats Market leader Heavily dependent on One Flavour Unexploited rural markets Strong presence of regional competitors Brand loyalty Minor distribution problems Increasing number of working youth Competitive pricing (Top Ramen) Distribution channels Health related issues Affinity of Indians to Chinese food Innovative flavours for Indian taste buds Other Product Lines Advertising strategy

Segmentation & Differentiation: STPD ANALYSIS Segmentation & Differentiation: Based on Age, lifestyle and habits of urban families Classic Noodles – 5 – 10 yrs. Veg. Atta Noodles – Health Conscious. Rice Mania – Teenage Cuppa Mania – Office goers, Working women.

STPD ANALYSIS Targeting: Initially, Nestle tried to position the noodles brand on the platform of convenience, targeting working women Research then showed that kids were the largest consumers of the brand Nestle repositioned the brand towards kids using sales promotions and smart advertising

STPD ANALYSIS Targeting: In 2005, Nestle made a smart move Maggi launched Maggi Atta Noodles with the baseline ‘Taste bhi, health bhi’. Targetting health conscious people

STPD ANALYSIS Positioning: Art of Product Positioning - Stand out in the Crowd Intially Maggi was positioned as a hygienic home made snack, a smart move Over the years, Maggi has grown as a brand and positioned itself as a ’Fast to cook! Good to Eat!’ food product The company could have easily positioned the product as a meal

STPD ANALYSIS Positioning: NIL's promotions positioned the noodles as a 'convenience product', for mothers and as a 'fun' product for children “ Mummy Bhook lagi hai” “Bus 2 min” “2 minute noodles”, Maggi has managed to position itself in the food and snacks market in the country, wonderfully fitting into the breakfast-lunch-dinner-in-between snacking slot.

PENETRATION STRATEGIES Availability in different pack sizes: 50gm 100gm 200gm Family size of 400gm

INITIAL STRATEGIES OF MAGGIE Maggi 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 sales of Maggi was not picking up despite of heavy Media Advertising. To overcome this NIL conducted a research. They promoted the product further by distributing free samples. Giving gifts on return of empty packets, etc. Effective Tagline Communication.

HURDLES FACED Sales saw a decline in 1990’s: Formulation changed from Fried base to Air dried base Competition increased in noodle segment: Top Ramen - Indo Nissin (Japanese co.) New product launched in market but failed: Dal Atta Noodles Sambhar flavour Maggi launched some new products under their brand, but these products were not successful.: Ketchups, Soups, Taste makers,etc. 22

COMMUNICATION MEDIA

TARGET SEGMENT Maggi was a sponsor for Hum Log, a popular television show on Doordarshan, India’s sole channel in 1984. Maggi is now targeting its products at the entire family and not only kids. Maggi has recently launched “MAIN AUR MERI MAGGI” campaign in commensuration of 25 years of Maggi in India. Maggi did not focus heavily on print media during its launch since its initial target audience was mothers and kids. Some advertisements in the print media were used to highlight the convenience factor of Maggi.

PRINT ADS Maggie introduced this advertisement in various magazines in 2003 to celebrate 20 years of its product in India

Source: adex india (a division of tam media research) PRINT ADS Maggi has recently come out with advertisements in some weekly magazines for its new atta noodles and rice noodles variants. Maggi rice noodles mania had the highest column centimeter in print during Jan – Aug ’07 among the instant foods category. Maggi’s expenditure on print media is much lower compared to other  media.  Source: adex india (a division of tam media research)  

PRINT ADS MAGGI 2-MINUTE Noodles "Taste Bhi Health Bhi“ Chaska Taste ka, Health Rice ka MAGGI RICE NOODLE MANIA comes as another unique TASTE BHI HEALTH BHIoffering from the house of MAGGI. MAGGI Vegetable Atta Noodles, an offering that exemplifies "Taste Bhi Health Bhi". “Just add garam paani … Carry on jaani”

SALES PROMOTION Objectives To introduce new products To attract new customers and retain the existing ones To maintain sales of seasonal products To meet the challenge of competition Tools Exchange schemes Price-off offer Coupons Scratch and win offer Money Back offer

SALES PROMOTION Maggi was distributed free in schools and offices to promote trial Return gifts on empty packs Maggi fun book and stickers with funky animal facts. Discount on 8 piece pack( 78 MRP). These are promotional schemes given by retailer itself not by NIL. Company is coming up with schemes like giving one soup pack with 8 piece pack. In Past company has promotional schemes like 4 piece pack with that of 36 instead of 40.

PRODUCT DISPLAY

RECOMMENDATIONS Introducing a fictitious character who can connect with kids for better brand recall Organizing contests , games and industrial visits for school kids to further strengthen the brand image Invite Housewives to send new innovative recipes made from Maggi and introduce rewards for the same Foray into the Chinese food segment by introducing branded products for chowmeen, schezwan and hakka noodles Conduct promotional campaign at schools in small towns with population of more than 10000

RECOMMENDATIONS Focus on creating distinctive image, based on twin benefit of “INSTANT” and “HEALTHY” with emphasis on health conscious and rural market. strengthen the distribution channel of the rural areas within 100 KM of all the metros. Launch new advertisement campaign (T.V., Radio and print media commercials) with the brand ambassador. Conduct Market Research to find out the market penetration of the product in the rural areas covered.

THANK YOU