Assignment 1 (Marketing Management)

Background

Nestle:

Nestle is a Swiss food and beverage multinational company. In 1905, Nestle was formed by the merger of Farine Lactee Henri Nestle, which was established by Charles Page and George Page in 1866 and Anglo-Swiss Milk Company, which was established by Henri Nestle in 1866. It is selling about 1 billion products across the world. Nestle was announced a number 1 company in 2011 and making best profit in the market. Today it is ranked on number 9 in global 500 companies. Nestles products are served in more than 130 countries. It

basically focuses on nutrition health and wellness.

The brands of Nestle includes following:

Coffee & tea Ice-cream Breakfast

Cereals

Seasoning,soups, sauces

frozen foods

Bottled Water

Milkshakes and other Beverages Baby Food

Chocolates and confectioneryPet Food

Healthcare Nutrition

Pharmaceutics & cosmetic products

Maggi:

The original company of Maggi was established in 1872 in Switzerland. Protein rich meal came in market by Maggi. In 1947, holding company Maggi was merged with Nestle Company and formed Nestle S.A. Maggi comes under seasoning, sauces and soup brand of Nestle Company.

Maggi brand was introduced in India by the Indian subsidiary of the global FMCG major, Nestle India Limited (NIL) in 1982. Maggi is especially known for its sauces, cubes, dry soups and instant soups, instant noodles. The main focus of Maggi is on health and taste. Today it is one of the leading companies in market. In 1997 the formula for the Maggi was changed and consumer did not like the taste. So old formula was reintroduced by NIL in 1999 and sales again increased. In 2009 “Me and Meri Maggi” completed 25 years and introduced Maggi Pazzta. Maggi has launched many other products to maintain the brand image in market. Direct Competitors of Maggi are Sunfeast Yippee Noodles, Top Ramen and HUL Knorr Soupy Noodles. I have chosen the product Maggi 2 minutes noodles of Nestle Company because it’s all time favourite food of mine.

When you hear NOODLES what comes to your mind??

Me and Meri Maggi:

It had completed its 25 years in Indian market by maintaining its value. It offers different flavour to its customers with extra features. Quantity and quality both do matter for the customers so Maggi offers more of a product in lesser price. It is even consumed in rural areas and they can easily afford it. Chicken Maggi and other products were introduced by Maggi but it faded because the original Maggi has its own worth. Maggi had increased its price by Rs. 1 some time ago but its sales dropped so they had to make it look more accessible by reducing price to Rs. 10. Now we can get the family pack of 8-10 cubes which are at cheaper price. It has launched an advertisement campaign “Me and Meri Maggi” to make direct relationship with customers. It allowed them to share their own experiences,

stories and talk about brand. It received different kinds of stories; some were naughty, adventurous while other was romantic. It gave an idea of three new flavours; ‘Tricky Tomato’ to khatta meetha tomato flavour, ‘Thrilling Curry’ to spicy flavour and ‘Romantic Capsica’ to aromatic capsicum flavour. So idea behind it is “Maggi se bani aapki kahaniya, aur ab aapki kahaniyo se bane Maggi”

Connect Indian Audience:

Maggi has shared special moments of audience like we generally try to experiment whacky ideas when we listen about “Main aur Meri Maggi” e.g. eating Maggi with toast or bread, sharing Maggi on hill stations, eating Maggi when hands are covered with Mehandi.

Maggi has also introduced “Vegetable Aata Noodles” as wheat and vegetables are considered as tasty and healthy food in India so it used a tagline “Xtra delicious Goodness of Fibre”. All these connect Indian audience with Maggi.

Factors influenced to purchase Maggi:

Initially when a product is launched in market by any company then it is necessary to design brand mantra as what company wants customers to think about their product. So Maggi came into market with different and innovative brand mantra and slogans to engage more customers. It has established its position in the market as well as in the mind set of customers. There are many factors which influence to purchase Maggi. Generally customer’s behaviour is influenced by culture factors, psychological factors, personal factors and social factors. Maggi considers all these factors like it is consumed by every class of people which talks about culture factors. We are influenced to eat Maggi by our family and friends with no status difference which comes under social factors. When a taste is developed in individuals and they prefer a product of their own choice like Maggi includes personal factors. Customers are satisfied with the quality of Maggi and they have their own perceptions to consume it which comes under psychological facors. What I personally feel and influenced me to have Maggi all the time are:

Easy to cook its yummy perfect taste Indian masala flavour touchAvailable in different sizeAttractive design and packagingHealthy and filling foodReady in 2 minutesAvailable in affordable price

Promotion campaign:

Advertisement through Effective Taglines:Different taglines are used by Maggi till now which are mentioned below:

1. Taste bhi Health bhi2. 2 minute me khushiya3. Fast to cook! Good to eat!4. We have asked for just 2 minutes of your time5. Mummy bhukh lagi, bas 2 minute6. You can be on the next Maggi pack or Advertisement

Other Advertisement strategies:1. It launched a campaign to share Maggi moments of consumers.2. Recent endorsement by the profilic Amitabh Bacchan gives it a new aspect

that is now expanding its target of customers from a product strictly for children, now the product is looking to expand

3. Amitabh bacchan will share selected stories on TV and on Packs4. New ad campaign of Rahul Khanna and Amrita Puri

Print ad:Maggi generally do not prefer Print media because its main focus it has already been emotionally attached with many customers. Some advertisements were printed in magazines when Maggi completed its 20 years. It is recently promoting its products through weekly magazines. Still the expenditure of Maggi on printing media is much lesser than other media.

Sales Promotion:Maggi has been trying to entice audience of every generation. It is providing economic feasibility by giving discounts and other offers.

1. Initially Maggi was given as free samples for the promotion. 2. Discounts were given with large packs. 3. Special schemes like free soup pack with 8 cubes packet etc4. Fun book and stickers for attracting children

Public relation:It also included public relation to feel its customers valuable. They try to interact with the costumers directly or indirectly to take their feedback. They are also getting to know what their customers want on a large scale but in effective manner. Different strategies are followed by them like

1. Starting of a online Maggi club to increase the sales, to interact with consumers and to make new direct database

2. Cut 5 logos from pack and send them to become a member of Maggi club3. Maggi sketches and school quiz were organized

Mouth publicity: When the information about product is transferred from one person to another through oral communication then it is called mouth publicity. It’s very important for a company because people generally tend to remember the things which are told by their friends, family members and neighbours. Maggi is also getting publicized by word of mouth because in every corner of India it is consumed and especially by children and students. Whenever students go out in break time or do not have much time so they usually prefer eating Maggi because it is easily available and ready in 2 minutes. It is available from a small shop to any good cafe. In a group of youngster with no prior culinary experience Maggi is the ideal party food. During night outs or slumber parties Maggi can be easily cooked. It is fun to cook Maggi and sometimes best experiences are shared while eating Maggi.

Corporate Social Responsibility

Maggi is performing CSR for cancer centres and giving charity to cancer patients. It is having five centres across the world. Nestle is also doing CSR activities in Education and training field. It has developed a strong relationship and commitment with its customers. The activities done by it is helping so many people by creating direct and indirect employment for them.

Reference Group:

Maggi is a part of everyone’s life. There is no age limit, it is consumed by every age groups. It is preferred as mid night snacks by bachelors especially during examination. It is not only a mid night filling hunger product but it can be eaten as a snack anytime. It is the favourite food of kids because it has different taste and fast to cook. It became habit of youths to eat Maggi even in breakfast. It also attracts office going people because it takes only 2 minutes and their life style is very fast so they generally prefer ready to cook food. It is now attached with sentiments of every consumer. Different experiments can be done with Maggi as it can be cooked creatively by adding vegetables, cheese, different types of sauces. Maggi basically convinced mummas to give Maggi to their children and targeted the mumma’s bond with her children. So friends, peers, and family all influenced me and comes under reference group.

Conclusion:

Maggi is effectively balancing different market mix to maintain its brand loyalty. Competitors of Maggi are trying to break the hold of Maggi from the market but Indians have hard to change eating habits. Once they get attached with any brand then they do not want to associate with any other brand.

Talking about India:

Population of 1.25 billions28 states and 7 union territories1256 dialects

Do they have anything common??

Answer is YES

Meri MAGGI

Maggi understood the buying behaviour of its customers and it is trying to maintain in every possible way. It always comes with unique and innovative ideas which always attract me to have Maggi all the time. I am more influenced by its factors and the taste of Meri Maggi.

Source: http://en.wikipedia.org/wiki/Nestl%C3%A9 on 15/09/2013

http://www.thorpemolloy.com/social-responsibility-maggies-cancer-care.php on 15/09/2013