Presentation On

Agenda

Introduction to Nestle Maggi Noodles Marketing Mix STPD Analysis Distribution Competitors Analysis Consumer Survey SWOT

Introduction to Nestle Maggi Noodles….

Nestle aspired to create a Maggi kitchen. Nestle observed a burgeoning craze for

Chinese food & easy to cook meals. Nestle launched Maggi Noodles in 1983. Initially priced at Rs. 2.10 with a close to

100% margin. Product targeted towards middle class of

metros and 1-tier cities. Product was positioned as an easy to

cook meal. Target customers were children and

youth.

Product Lifecycle & the 4 P’s

Introductory Phase

• High Marketing & Production Cost.

• Promotion focus on awareness and information

Growth Stage

• Increasing sales & profits.

• Entrance of competition with Top Ramen.

• Change in formulation in 1997 & reintroduction of old product in 1999.

MatureStage

• Extending &introducing new product lines.

• Repositioning itself as a healthy product.

• Moving into new markets.

Product•Ready to cook meal.•Variants for different segments.

Price•Differentiated packaging.•Lower price point strategy.

Place•Target Rural Market•Target Hawkers/Roadside eating joints.•Kiryana Stores.

Promotion

• Prime time electronic media advertisements.

• Awareness Campaigns.

• Sponsor school quiz.

STDP Analysis

SEGMENTATION TARGETING POSITIONING DIFFERENTIATI

ON

AGE KIDS FAST TO COOK GOOD TO EAT TASTE

EATING HABITS YOUTH 2 – MINUTE

NOODLES. FLAVOURS

LIFESTYLE OF URBAN

FAMILIESOFFICE GOERS TASTE BHI

HEALTH BHI PACKAGING

BCG-MatrixM

ark

et G

row

th R

ate

Relative Market Share

20 %10 %

0%

10X 1 X .1 X

Market Share-80%Market Growth-15%

Star

Dogs

Cash Cows

Question

Maggi Noodles

Market Penetration Strategies & Distribution

MARKET PENETRATION STRATEGIES

Promotional Campaigns in schools. Dry Sampling – Distributing Maggi

Packets. Wet Sampling – Distributing

cooked Maggi. Product Innovation – Atta Maggi,

Rice Mania Maggi, Tomato Maggi, Chicken Maggi.

Availability in different packages – n50gm, 100gm, 200gm, 400gm.

Advertising Campaigns – 25yrs Celebration

DISTRIBUTION

NestleDecentralized Manufacturing2 Types Distribution – Traditional (Kirana Stores), Institutional (Food Outlets)

Distributor6% margin from Nestle.Has to pay in advance to Nestle but has to give on credit to Retailers.Target small & big shops both.

Retailer10% margin from distributor & goes to 15% for new & promotional products.Area space bought by Nestle for promotional purposes.Sampling (Wet & Dry) done here for promotional purpose

Competitor – Top Ramen.

Nearest Competitor. Innovation - Cup Noodles. -Curry Noodles. Major portion of market

share in cup noodles market.

Positioned as easy to cook meals and not snack items.

Target Audience – Adult & Teenagers, 16-35 years old.

Issues:

Lack in Promotional activities, apart from initial Shahrukh campaign.

Distribution Issues – Earlier using Marico distribution channel now making their own channel.

Consumer Survey

32%

64%

4%

Experience With Maggi

ExcellentGoodOk

12%

52%32%

4%

Taste Is More Im-portant Than Price

Strongly Agree

Agree

Neutral Disagree

36%

48%

16%

Maggi Consumption Per Week

<=11 to 34 to 7More than 7

16%

68%

16%

Consumer Perception About Maggi

Nutritional Non Nutri-tional

Unhealthy

SWOT ANALYSIS

STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

Market Leader

Big Product Line of which only 4-5

are major players

Unexploited rural market

Strong presence of regional competitor

Brand loyalty Health Related Issue

Increasing number of

working youth

Competitive Pricing

Distribution channels

Affinity of Indians to

Chinese foodTop Ramen

Innovative flavors for Indian

taste buds

Leveraging Maggi Kitchen ITC-Pasta Treat

Advertising Strategy

THANK YOU