Marketing 1ppt

8/6/2019 Marketing 1ppt

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The Maggi Brand in IndiaBrand Extension and Repositioning

Made By: Gaurav Poonam,Kamal Pragya


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The Maggi Brand in IndiaBrand Extension and Repositioning

y Nestle India Limited is the market leader in Indian Noodle Marketwith its Maggi Brand of Noodles which was pioneer brand launched in 1983 in the packaged food market of India.

y It took the challenge and established Maggi in Indian market

considered to be conservative and typical about foodconsumption. Itappropriate realization of target segment, effective positioning andeffective promotion and sales made Maggi to Noodles in India as Xeroxit to photocopier. NIL had introduced sauces, ketchups and soups underMaggi brand to reap benef it of brand popularity and image andcontr i bute to f inancial gains by 1990.

y M

aggi also became successful in sauces, ketchups and soups Market in India.


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y To fulf ill noveltyneeds of customers and revitalize M aggiNoodles Brand NIL made different attempts by introducing newformulation to new taste but customers resisted change and Maggi had to reintroduce Maggi Noodles in same taste.

y M aggi Noodle had till 2005 f ive product line on noodles withfour variant in Maggi 2 Minutes Noodle. In 2006 in compliancewith NIL target to be health and Wellness Company Maggi repositioned it as health and taste food products. NIL has alsointroduced with taste and product line in Sauces and Soup Marketunder Maggi to catch new segment, revitalize brand, compete

with other producers and fulf ill expectation of customers.


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y In 2005 M aggi brand worth was 3.7 billion from 1.7 billion market worth in 1.7 billion in 2003. Maggi Noodle is Marketleader with around 80% market share in Noodles/P asta andMaggi Sauce is market leader with almost 37% of marketshare in 2005 in 1.8 billion market of India. Knorr has taken over Maggi in Soup market recently.

y In 2005 M aggi was the highest spender in the Promotion and Sales in the Indian Market in the Noodles Category.


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y M aggi is competing with Heinz Sauces and Ketchup, KnoorSoups, Kissan Sauces and Ketchup,Top Ramen, Sunfeast PastaWaiWai and 2 PM in corresponding categories of products and variants.


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Maggi in Indiay M aggi noodles is a brand of instant noodles made by

nestle.y It was founded by the Maggi family in Switzerland in the 19th

century.y M aggi in India has been well known for its flagship

product of instant noodles with its various desi sub-segments such as traditional dal atta,veg atta and rice noodles


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Maggi in Indiay Nestle unleashed brand Maggi in India almost 25 yrs ago in

1983 with the launch of its 2-minute noodlesin its masalatomato and chicken flavours followed by many other flavours down the line.

y When Nestle India launched M aggi in the country itused the tagline Fast to cook and good to eat,tonot onlypromote the product ,but also to educate the ever growingaspirant consumer about the advantages of using it.


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SWO T Analysis of Maggi as BrandStrengths1)Market leader in their segment.2)Strong brand loyalconsumer base.

3)Wide range of distr i bution channel.4)Innovative product


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Weakness

G eneric Brand to Noodles in Indiay Low rural market presence constraintsy Uniform Brand for all foodcategoryy Brand Proliferation


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Opp ortunitiesG rowing package and canned food market in India by 15%annually.

y Opp ortunity to be substitute to other snacks categoryof food products.

y H igh brand awareness of Indian consumery Other p roduct category like Biscuits, Chips and Ready to

Eat Marketstill unexplored.


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T hreats

Competitors with long history in product category Internationallylike, Heinz Sauce and ketchups of Heinz Indian, Top Ramen in Noodle and

y K norr Sou p s.y Single p roduct focused competitors like Heinz sauce and Wai

Wai Noodles.y Less Entry Barriers in the Market segment for product categoryy ITC s strong base in Indian Market.y Substitute Product to Product Segment.


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P roblem

y M aggi sales declined in 1990s.y C om p etition increased in noodles segment.y New p roduct in market but rejected by consumers,due to

taste.


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P ossible Alternatives

y Strengthen and use the Distribution : NIL should focus on distr i bution channels and use of the distr i bution channelto expand its market to Rural India with products targetedto the market. It is the way it could increase its volume of sales.

Increase the Usage of M aggi Brand Products : SinceMaggi Noodles and Maggi Sauce is market leader it has toadopt strategy to increase the usage of the product to protectits market share.


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C ontd.y Lunch H ealth Awareness Promotion C am p aign : NIL

should launch Health Awareness campaign to educateconsumers about the benef its of health food. Itcouldsponsors health camps, publish health information.

Enter into other p roduct category like Biscuits,C hi p s and Snacks with New Brand : To enlarge its domain, NIL should enlarge its product segment. It wouldspread economies of scale to customers in the form of price.


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BES T C OU RS E OF AC TION

Introduce different new brand or acquire emergingbrand in biscuits, chi p s and snacks category.

M aggi though has been able to differentiate itself fromother Noodles, Maggi being taken 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 possi ble product categoryvulnerable if lunched under Maggi.


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C ontd.y So to avoid proliferation of brand and introduce new

products to capture opportunities in other snacks and readyto eat product category NIL has to introduce new brandingstrategy.

As pasta of IT C has been seen as products capturing themarket of noodles and Maggi failing to lunch pasta underMaggi brand also support the argument for new brandintroduction by NIL.


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C ontd.y As Indian M arket is Brand conscious , other

competitors are coming up with more Indianized brand of products, and as Indian being more aware of their culture andlarge segment being typical and conservative about theirculture, there care more chances that NIL would besuccessful if it create a brand close to Indian culture in wording to positioning. As India is growing, Old Indian Brands are also regaining momentum worldwide, NIL couldcatch the trend of market.


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C ontd.y By doing so, NIL could avoid the draw backs associated with

the Maggi brand. It could position new brand in competition with other competitors brand where there is no f it of product with the Maggi brandNIL other option is acquiringproducts manufacturers of different products like biscuits,chips and snacks as it is very essential for its market leaderposition. Other companies have advantage of such products.ITC has biscuits to it, H industan Lever has tea to it.


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C ontd.y India is huge market where distr i bution advantage plays

major role and economies of scale pays back. So its is important for NIL to concentrate on other ready to eatcategory to benef it consumers from economies of scalereflect in price..


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S TP AnalysisSegmentation:AgeLifestyleEating habits of urban families Targeting:Kids YouthWork ing Women Off ice goers Positioning:Easy to cook,good to eat.2-minute noodles


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THAN K YOU

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Marketing 1ppt