1. Maggi Noodles Alka Baid Arjun P.R Avishek Singal Ratnavel Subramanian

2. AGENDA Overview of Maggi Noodles ▫ Positioning and repositioning ▫ Advertisement ▫ Sales promotion Analysis of the product Competition ▫ Strategies adopted to tackle competition Distribution strategy Hypotheses ▫ Justification ▫ Instruments of data collection Analysis of data Net take away

3. Overview of Maggi Created in 1863 by Julius Michael Johannes Acquired in 1947 by Nestle Introduced in India in 1982 Top Ramen - the first competitor in 1990 Introduced new variants in 2005 India the largest consumer of Maggi noodles

4. Positioning and Repositioning Positioning ▫ Initially introduced as easy to cook ▫ Focused on working women Repositioning ▫ Focused shifted to children ▫ Focused on health development

5. Advertisement Variety of TV commercials ▫ Constantly adapting ▫ Both customer and consumer centric ▫ Sponsoring famous television shows  Hum log in DD Social media

6. Advertisement Popular taglines ▫ Fast to cook, good to eat ▫ Mummy, I’m hungry ▫ Taste bhi, health bhi “Me and meri Maggi” campaign

7. Few advertisements

8. Me and meri Maggi

9. Sales Promotion Sampling ▫ Schools and offices (Targeting kids and working crowd) Return gifts on empty packets Maggi club ▫ Discounts on movie tickets for members ▫ Organized quizzes and sketching competition Discounts offered to retailers ▫ 7% discount on 6-pieces pack ▫ 5 rupee discount on 8-pieces pack

10. Analysis of the Product STPD analysis Segmentation ▫ Maggi created a separate segment of instant noodles Target ▫ Kids, youth and working crowd ▫ Basically all ‘convenience-savvy time misers’ Positioning ▫ 2-minute noodles ▫ Snack market Differentiation ▫ Variety of flavors ▫ Packaging

11. Analysis of the Product SWOT analysis Strength ▫ Established family brand – market leader ▫ Global corporate support ▫ Marketing and distribution channels Weakness ▫ No authentic noodles Opportunity ▫ Unexploited rural market ▫ Growing packaged food industry ▫ Increasing brand consciousness Threat ▫ Health issues ▫ Generic competition

12. Analysis of the Product 4P analysis Product ▫ Instant noodles ▫ A large pool of variants Price ▫ Affordable ▫ Inflation pricing strategy Promotion ▫ Initially – Working women ▫ Kids and youth ▫ Health centric Place ▫ Wide distribution network – High availability ▫ Satisfactory distributors and retailers

13. Competitors List of major competitors ▫ Top Ramen  Nissin  Second largest noodles brand ▫ Sunfeast Yippee  ITC  Fresh competitor ▫ Horlicks Foodles  GSKCH  Fresh competitor

14. Strategies to tackle competition Maggi vs Top Ramen ▫ Maggi – first ▫ Maggi was more established ▫ Maggi changed the recipe  Top Ramen sees a short rise in sales ▫ Maggi rolls back to the old recipe  Top Ramen is back to square one ▫ Maggi obtained the health platform ▫ Major strategy by Maggi was “Do Nothing”  Strengthened its distribution channels  TopRamen’s lack of competitive promotion

15. Strategies to tackle competition Maggi vs Yippee ▫ Differentiation of Yippee:  Shape of the noodle cake  Ability to consume long after cooking ▫ Strength of Yippee  Distribution of ITC  Umbrella branding strategy  ITC Conglomerate ▫ Went head-on to battle against Maggi

16. Distribution Strategy Traditional distribution ▫ Carry Forward Agents (CFA) ▫ Distributors ▫ Wholesale dealers ▫ Retailer Modern distribution ▫ Designated distribution ▫ Retail store chains

17. Distribution Strategy Nestle offers 6% margin for distributors Terms of sale: ▫ Distributors pay in advance ▫ Retailers buy on credit Variety of distributors ▫ Urban ▫ Rural

18. Hypotheses 1.Maggi is perceived by the consumers as a ‘quick-meal’. 2.Maggi is considered healthy by both mothers and other consumers. 3.Masala Maggi has reached the minds of consumers more than its other variants. 4.Maggi was never seen as a substitute to regular Noodles.

19. Justification H1 ▫ Product used over a long time ▫ Recent advertisements H2 ▫ Major consumer – Kids H3 ▫ Masala maggi – available since launch H4 ▫ Positioning of Maggi was always a snack

20. Instrument of data collection Questionnaire Sample size: ▫ 100~120 ▫ 40 parents

21. Analysis of data Q1 : Which of following would you prefer most for a snack? (Rank among 9 options)

22. Analysis of data Q1

23. Analysis of data Q2 : Which of the following do you thing qualifies as a “quick-meal”? (Rank among 9 options)

24. Analysis of data Q2

25. Analysis of data Q3 : What brand comes to your mind when asked about “instant-noodles”? ▫ 119/121 responses - Maggi

26. Analysis of data Q4 : Which of the following do you think are varieties of Maggi? (Check boxes containing both correct and wrong options)

27. Analysis of data Hypothesis 3 has been proven wrong ▫ “Vegetable Atta noodles” is almost as popular as Masala Maggi

28. Analysis of data Q5 : Between Maggi and regular noodles (served in Fast Foods/Restaurants), rate the parameters given below. (On a scale of 5. 1 being the lowest and 5 being the highest)

29. Analysis of data Q5

30. Analysis of data Q5 (part 2)

31. Analysis of data Q5 (part 2)

32. Analysis of data Hypothesis 4 proved Right ▫ The two distribution of rating shows that the products are not complimentary

33. Analysis of data Q6 : Would you like to consume Maggi on a regular basis?

34. Analysis of data Q6

35. Analysis of data Q7 : If yes, at what situation would you like to have “Maggi” Noodles? i.Regular day Breakfast ii.Evening Snack iii.When you’re in a hurry iv.For a proper meal v.A late night snack HEALTHYTASTYMEALQUICK Regular breakfast1010 Evening Snack0100 When you're in a hurry0011 For a proper meal1110 A late night snack0101

36. Analysis of data Q7

37. Analysis of data Q7

38. Analysis Hypothesis 1 has been proven wrong ▫ Even those who consume/feed Maggi regularly are doing so not because it’s filling (Meal)

39. Analysis of data Q8 : If No, what are the possible reasons behind? i.It’s not tasty ii.It’s not healthy iii.Expensive iv.I like variety

40. Analysis of data Q8

41. Analysis of data Hypothesis 2 has been proven wrong ▫ Both the entire population and the parents do not consider Maggi healthy

42. Net take away Maggi has spent loads of time, work and money to imprint its brand in the minds of the consumers Maggi noodles is not considered healthy at all Vegetable Atta noodles and Masala maggi are the most popular variants of Maggi Maggi noodles has not yet been perceived as a meal Maggi noodles has not been seen a substitute for regular noodles