Managing Marketing Programs

Project Report

ON

SUBMITTED TO: SUBMITTED BY:

Ms. Shruti Kunal Kothari PGP20102158

Table of content -

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Particular Page Number

Introduction 3

Advertising and sales promotion tools 4

Advertising agency – format, size and services 7

Consumers 7

Source message and channel factors 8

Advertising objective and budget 9

Creative aspect 9

Media strategies 10

Social and ethical issues 11

Learning’s and Suggestions 12

Bibliography 13

Introduction –

MAGGI

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Maggi is an over 100-year-old Nestlé brand of instant soups, stocks, bouillons, ketchups, sauces,

seasonings and instant noodles. The original company came into existence in 1872 in

Switzerland, when Julius Maggi took over his father's mill. It quickly became a pioneer of

industrial food production, aiming at the improvement of the nutrition of worker families.

Over time the scope of Maggi has been extended from a predominantly dehydrated cooking aid

brand towards a general savory food brand including many types of ready meals and also frozen

food. This is in line with the fact that people all over the world are cooking less and less from

scratch.

There is a wide range of Maggi products marketed worldwide in several countries. These include

dehydrated bouillon, granulated seasoning, soups, recipe mixes, snacks, frozen foods, etc.

In 1863, Julius Maggi developed a formula for bring added taste to meals, which later became

lead to the beginning of Maggi and convenience food products.

Maggi, known worldwide for innovation and quality worldwide, understands that consumers are

usually under great pressure in terms of time, budget, cooking skills etc and therefore tries to

establish a bond through giving ideas and advice that make providing food easier. This results in

the food provider being appreciated by family and friends.

Maggi has faced lot of hurdles in its journey in India. The basic problem the brand faced is the

Indian Psyche. Indian Palate is not too adventurous in terms of trying new tastes. That may be

the reason why we are still stuck with Idli and Sambhar.

As of now, Maggi is the brand for 2-minute noodles, Chinese noodles, ketchups and sauces for

Nestle. As per the latest available data, sales of Maggi 2-minute noodle in India are highest

among all other Nestle products worldwide. Analysts say Nestle, which faced one of the most

challenging years in the FMCG industry in 2003, has realized that unless it continuously

innovates in an endeavour to provide value-for-money to consumers, the company's bottom line

may be impacted in the long run.

Advertising & sales promotion tools used by Maggi –

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PRINT ADS

 Maggi does 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. (As shown below)

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Different Communication Media used by NIL.

Maggi introduced this advertisement in various magazines in 2003 to celebrate 20 years

of its product in India.

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. Growth in noodles/pasta print advertising grew by

42% in Jan-may 05 compared to Jan-may 04. Of this, Maggi vegetable Atta noodles had

92% share.

Maggi’s expenditure on print media is much lower compared to other media.

[Source: adex India (a division of tam media research)]

SALES PROMOTION:

Tools used by Maggi Noodles for Retail Sales Promotion Initiatives:

Exchange schemes

Price-off offer

Coupons

Scratch and win offer

Money Back offer

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.

Organized Retail Sales Promotion

7% discounts on 6 piece pack (56 MRP), 5 rupee 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, the company has promotional schemes like 4 piece pack with that of 36 instead

of 40.

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Point of purchase advertising: Point-of-purchase advertising is any form of special

display that advertises merchandise. As their main target is children, Maggi packs are

usually placed in low counters, shelves or hung in twine baskets within their eye level.

Because, children often influence purchases by pestering their parents to buy things on

seeing them.

Consumer Promotion: Sampling: Initially NIL aggressively promoted Maggi noodles

through several schemes like distributing free samples, giving gifts on their return of

empty packs, etc. the company has spent a huge amount of money in communicating the

product’s benefit to the target consumers.

A Look at the Display:

Large pack sizes at the top with decreasing pack sizes as going downward. Why? This is

because that for a retail outlet the more value is generated large pack thus they try to

project big size at convenience place.

Outer display shelves are purchased by company (Reliance mart).

Advertising agency – Publicis Groupe

Type of agency Advertising

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Accounts won Maruti Suzuki (A-Star and Grand Vitara), Voltas India, United Biscuits

(McVities), Carrefour Retail, Cleartrip.com, Futures Group (USAID), Aegis, DLF Pramerica,

Nestle Corporate-South Asia Region, Apollo Tyres

Accounts lost None reported

Publicis Capital is now a powerhouse that combines brand management and entrepreneurship

that’ll challenge benchmarks and paradigms in the time to come. Most importantly, it has

affected such success singularly because of its belief in being one team. This has infused enough

ownership and accountability amongst senior members, while at the same time got them wedded

to a common vision. A vision that lends itself into its philosophy of creating ‘Contagious Ideas

That Change The Conversation’ Publicis Capital has been able to demonstrate this at a national

level by changing the conversation on Maggi Noodles - inarguably the biggest food brand in

India. Publicis Capital created the idea of ‘Me And My Maggi’. Instead of the brand talking to

the consumer, the campaign allowed the consumer to own the brand and talk about their unique

stories with Maggi. The industry recognized Publicis’ point of view and most importantly, brand

Maggi tasted its highest ever YOY volume growth, that took on a humongous base.

Consumers of Maggi (STPD) –

The target consumer group is also shown from the teenager to the grandmother, which is quite

vast. And with the noodle pack being shown as a replacement to Rice(that it targets to replace)

the relevance of this ad is spot on.

Segmentation Targeting Positioning DifferentiationAge Kids Fast to cook, Good to

EatTaste

Eating Habits Youth 2-Minute Noodles Flavors

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Lifestyle of Urban Families

Office Goers Taste Bhi, Health Bhi Packaging

Working WomenHealth Conscious People

Classic Noodles – 5 – 10 yrs.

Veg. Atta Noodles – Health Conscious.

Rice Mania – Teenage

Cuppa Mania – Office goers, Working women.

Mass marketing has become segmented marketing

Source message –

India is a country where people are star-struck by film stars, cricketers, politicians, and brand

communication messages delivered by celebrities and famous personalities generate a higher

appeal, attention and recall than those executed by non-celebrities. So, NIL used Preity Zinta, a

very well-known actress of Indian cinema, as their celebrity spokes person.

Advertising objective and budget –

To introduce new products

To attract new customers and retain the existing ones

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To maintain sales of seasonal products

To meet the challenge of competition

With the recent Maggi Atta and Rice Noodles launch, Maggi has decided to turn to the Web for

its campaign. Almost half the spending for the campaign, estimated at several million, is being

devoted to online media. What seems to be even more fascinating is the launch of new flavours

in collaboration with their consumers.

Facebook has become a major player in the social networking market, especially since its

campaign by creating pages like “India ka national food MAGGI hona chahiye”, “Meri Maggi”,

“I Love Maggi”.

On top of this innovative idea, Maggi has bought major advertising space on various sites.

Creative aspect -

The Maggi Club - the children under 14 were invited by press advertisements and

distribution of leaflets to become a member of Maggi club by sending logos cut from 5

empty Maggi wrappers. Maggi projected it as “Maggi clubbers are fun lovers” and

intended to use it as reference group.

Benefits offered to Maggi-clubbers are various games like Snap safari game, Cap and

mask sets, travel India game, Disney today comic. To obtain each gift the member has to

send 5 wrappers as purchase proof.

Some special privileges were given to regular members time to time like, discounted

tickets of Appu Ghar.

Organized Maggi school quizzes and sketching.

Organize “ Me aur Meri Maggi” campaign.

Media strategies -

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Hierarchy of Effects: Maggi ads have already crated enough awareness, now they focus

on the other steps of hierarchy of effects model. The advertisement of Maggi provides

information about nutrition facts and several flavors available also attract kids with

colorful background and execution of ads. This ultimately results in actual purchase.

Music: Music is use as a stimulus in the Maggi ads to catch customers attention through

its famous jingle “Just 2-minutes”. This has created a strong brand recall value.

Rationality: Maggi ads are always contains information about the product. It states that,

the noodles can be prepared within just 2- minutes, it’s a healthy food which is also tasty,

also price related information are communicated through the advertisements.

Emotions: Maggi ads have emotional appeals as it shows, hungry child comes from out

and says that he is hungry and mother says just 2-minutes and prepares Maggi noodles.

Scarcity: as they offered a gift like a small toy or a Maggi Tiffin box along with

purchases of 6 Maggi noodles packets. This was offered for a limited period of time.

Message Strategies:

Maggi follow different message strategies. They use cognitive strategies as product information

is provided for the consumers on the ads. Nestle India Limited (NIL) also involves affective

message strategies as they relate Maggi noodles with the emotions, like it is a fun product for

kids.

Execution Framework:

Maggi follow different message strategies. They use cognitive strategies as product

information is provided for the consumers on the ads. NIL also involve affective message

strategies as they relate Maggi noodles with the emotions, like it is a fun product for kids.

Dramatization: For example, in one ad, it was shown that a child, who is away from

home, is writing a letter to his mother that, he is missing his mother and the noodles she

used to cook for him. Then he smells something and look back, he saw his friends cooked

Maggi noodles for him and they says, they are also missing their mom.

Informative: Info about nutrition facts and famous 2-minute cooking process.

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Social and ethical issues –

Maggi India has always focused on long term, sustainable and profitable growth and helped

communities around its factories to improve their quality of life in a similar manner. Milk

storage facilities have been set up close to the farmers. Veterinary services are provided free, and

medicines provided at wholesale cost. The company assists farmers in artificial insemination

programs for their cattle, provides subsidy and helps them in procuring loans.

Safe Drinking Water

Water is a scarce resource. In India, availability of clean drinking water is a major

concern for many communities. Almost 200 million people do not have access to clean

drinking water. Nestlé India is committed to improving the situation and believes that

the first step is to create awareness in the communities around its factories. A key focus

area of our Corporate initiatives is to help provide Clean Drinking Water and educate

children in schools to conserve this scarce resource.

Education and Training

Maggi supports initiatives to create awareness about the right to education and encourages

the communities around its factories to send their children to school. Nestlé India

employees have developed a special play 'Let Us Go to School' for this purpose. This has

been staged amongst the communities around our factories, and its recordings screened at

smaller gatherings along the milk routes. 

One of the main ethical issue is that Opinions by Doctors about these foods branded as

Junk Food by them and their bad effects. It is learnt that the first thing it affects is your

digestive system and you are prone to develop Gastritis and Acidity.

LEARNINGS AND SUGGESTIONS –

Maggi though has been able to differentiate itself from other Noodles, Maggi being taken

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as generic to Noodles is hampering other extended product category. Competitors have

high grounds to capture the market differentiating then from being Maggi. It makes

others possible product category vulnerable if lunched under Maggi. So to avoid

proliferation of brand and introduce new products to capture opportunities in other snacks

and ready to eat product category NIL has to introduce new branding strategy.

As Indian Market is Brand conscious, other competitors are coming up with more

Indianized brand of products, and as Indian being more aware of their culture and large

segment being typical and conservative about their culture, there care more chances that

NIL would be successful if it creates a brand close to Indian culture in wording to

positioning. As India is growing, Old Indian Brands are also regaining momentum

worldwide, NIL could catch the trend of market.

NIL other option is acquiring products manufacturers of different products like biscuits,

chips and snacks as it is very essential for it’s market leader position. Other companies

have advantage of such products. ITC has biscuits to it, Hindustan Lever has tea to it.

India is huge market where distribution advantage plays major role and economies of

scale pays back. So it’s is important for NIL to concentrate on other ready to eat category

to benefit consumers from economies of scale reflect in price.

Bibliography –

http://www.nestle.in/PreparedDishes_CookingAids.aspx?OB=3&id=31

http://www.maggi.in/

http://www.oneblogs.in/maggi/1/showtags.html

http://maggidawn.com/

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