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New Product DevelopmentMaggi

By : Prerna Goyal

IIPM,BangaloreSS 09-11

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Journey • First launch: 1882-83 , Switzerland • By: Julius Maggi

• Maggi- Nestle merger: 1947

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Nestle • Nestle is a Swiss company founded in 1986 by

Henri Nestle• It market its products in 130 countries acroos

the world• Nestle put nutrition as the core of their

business • Main focus is on health and wellness• Good Food, Good Life to All Consumers

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In India

• Nestle launched Maggi for the first time in India in the year 1982

• Launched in different falvour:• Masala• Chicken• Sweet&sour• Capsicum

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• The Brand(Maggi) is popular in:• India • Australia • Malaysia• New Zealand• Singapore• South Africa

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• Nestle wanted to explore the potential for such an instant food among the Indian market

• Nestle enjoys around 90% market share in this segment

• India is the largest consumer of Maggi

Noodles in the world

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Initial Scenario• Competition: • Ready to eat snacks segments• Home made snacks

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Cont.• Positioned as: hygienic home made snack• Targeted for: women ( wrong target group)• Research shows: Children as the biggest

consumer• Repositioned as:• ‘convenience product’ for mothers &• ‘fun’ product for kids• Using sales promotions & smart advertising

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Journey Cont.

• During 1977:• Change in formulation • Change in taste of Maggi

• In 1999:• Relaunched with the original taste• “ 2 minutes” proposition

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• Maggi’s first product extension: 1988• Maggi instant soup

• In 2001: • Maggi became core brand of Nestle

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Cont. • In 2005:• Launching of “Maggi Atta noodles”• Baseline: “Taste bhi Health bhi”• Product well received by the Indian Consumer

• Recent launch: Rice noodles

• Maggi: A brand that knows the customer and willing to learn from the mistakes

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Range

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Variants

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SWOTstrengths

Market leader

Brand loyalty

Distribution channel

Innovative falvours

Advertising strategy

Opportunities

Unexploited rural market

Increasing no. of working youth

Affinity of indians to chinese food

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Market penetration strategies• Promotional campaign in schools• Advertising strategy: focusing on kids• New product innovation:• Veg. Atta noodles• Dal Atta noodles• Cuppa mania

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Cont.• Availability in different packaging:• 50 gm• 100gm• 200 gm• Family packs(400 gm)

• Conducting regular market research

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Hurdles faced • Sales saw a decline in 1990’s: • Formulation changed from fried base to air

dried base• Competition increased in market-palce:• Top Ramen-Indo Nissin ( Japanese co.)

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Cont. • New product launched in market but failed:• Dal Atta noodles sambhar falvour

• Maggi launched some products under their brand, but these products were un-successful

• Ketchups, Soups, Tastemakers etc.

• Latest threat to Maggi: Knorr

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Current Scenario

94%

4% 2%

world market share

Maggi Top ramenother local

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Cont. • Leading brand in India as well as World• Reasonable competitive pricing• Creative interaction blogs for customers:• www.maggi-club.in• Focus mainly on health issues.

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Suggestive promotion strategies

• Focus on creating distinctive image, based on twin benefits of “instant” & “health”

• Conduct promotion campaign in schools in small towns

• Launch new advertising campaign with brand ambassador

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Thank

You