Operation strategies of Maggi

Presented by,Rabin Bhandari

About Nestle

• Largest food & beverage company in the world measured by revenue

• Headquarter in Switzerland• 468 factories in 86 countries• 3,39,000 employees (2012)• Founded in 1866

Nestle India Ltd. Nestlé’s first sales agents in India began work in Chennai and Kolkata

in 1912. Nestlé celebrated 100 years in India (2012) Nestle procures 13 lakh litres of milk from one lakh farmers in

Punjab, Haryana, Maharashtra and Rajasthan. Nestle India had set up its first production facility at Moga in Punjab

in 1961, and now has seven manufacturing plants in Tamil Nadu, Karnataka, Haryana, Goa, Uttarakhand, and Himachal Pradesh ( 2011 data )

Today, the company directly employs 6,000 people in India and more than half a million indirectly.

Its products are sold in more than 3.5 million outlets across the country.

Nestlé is... ...the world's leading nutrition, health and wellness company. Our mission of "Good Food, Good Life" is to provide consumers with the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions, from morning to night. Continuous research Taste and lifecycle preference Safe and high quality

Mission

Nestle products

Maggi

• 30 years ago (1982) in India by Nestle India Ltd. (NIL)

• Launched traditional 2 minutes noodles in masala, tomato and chicken flavor with tagline fast to cook good to eat

Strength: Established brand Global brand Specialization Advanced R&D

Maggi: PLCIntroductory stage: High failure No competition Limited distribution Promotion focused on awareness and distribution

Growth Stage: Increasing rate of sales Entrance of competitors like Top Ramen, Hakka noodles, yippee, wai-wai etc. Promotion emphasizes brand ads Development cost recovered Offered in more size, flavor and options

Maturity stage: Declining sales growth Tough competition Heavy promotions to dealers and consumers Price and profit fall

Maggi: Facts

1400 – crore instant noodles market in India with annual growth rate of 15% to 20%.

Maggie’s share has slipped to 80% from more than 90%.

27% contribution to Nestle India Ltd. revenue.

Maggi business strategies

Distributing free samples Giving gifts to return of empty packets Dry sampling: distributing maggi packets Wet sampling: distributing cooked maggi Availability in different packages: 50gm,

100gm, 200gm etc. Availability in 2in 1, 4 in 1 packages Effective tagline communication

Various tag line

Mummy, bhookh lagi hai (Mom, I am hungry) Bas 2 minute ( Only 2 minutes ) Fast to cook, good to eat Taste bhi health bhi

Competitors

PriceAdvertisingPromotion

Distribution

Positioning the production system

Product type: Standard Production System: Product focused Inventory policy: Produced to stock

Production process: Batch and mass production The mass occur when producing noodle

while the batch occur in design the package, flavours

Plant layout

Nestlé India set up its first manufacturing facility at Moga (Punjab) in 1961 followed by its manufacturing facilities at Choladi (Tamil Nadu), in 1967; Nanjangud (Karnataka), in 1989; Samalkha (Haryana), in 1993; Ponda and Bicholim (Goa), in 1995 and 1997, respectively; and Pantnagar (Uttarakhand), in 2006.

* First research and development centre in India at Manesar in Gurgaun( 290 crore investment)In 2012, Nestle India set up its 8th manufacturing facility at Tahliwal (Himachal Pradesh).

R&D centres

Nestle institute of health sciences, Switzerland http://www.nestleinstitutehealthsciences.com

Nestle research centre http://www.research.nestle.com/

1.7% of sales in R&D activities Recall of maggi from the market in Philippines ,

Salmonella