Maggie Noodles in India: Creating and Growing the Category

Maggi Noodles in India: Creating and Growing the CategoryCase StudyIntroduction:Instant Noodles Maggi was launched in 1983 in India when the Indian Consumers were fairly unknown to the instant noodles and limited to vermicelli, chow mein which were occasionally used.It was a challenge to establish the brand in such market which is considered to be conservative and typical about food consumption. Maggi is a Pioneer Brand in packaged food market in India.In 2010, it was rated as No. 1 brand in India and India became the leading market for noodles within Nestle.HistoryNestl's relationship with India dates back to 1912, when it began trading as The Nestl Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished products in the Indian market.Nestle set up its first factory in 1961 at Moga, Punjab, where the Government wanted Nestl to develop the milk economy.Nestle in 1970 launched its 2 minute instant noodles under Maggi brand in traditional noodle eating markets of Malaysia and Singapore.Due to convenience of Instant Noodles, Nestle believed that it would also attract other markets and launched the brand in Australia.My massive sampling program and consistent marketing plan, it became successful in Australia and with same thought and believe, they launched the product in Indian Market.

QuestionsHow can an MNC successfully launch a product category that is new to the Indian market? By marketing MixHow can an MNC fight off local competitors, who are arguably closer to consumers? By building consumer base & distribution networkHow can an MNC bring its global competencies to strengthen its competitive advantage in the Indian market? By Worldwide competencies of ManufacturingHow does an MNC continue to renew itself toward off competition from other global competitors? By repositioning and brand extensionThe multi-level leadership that is required to succeed in the Indian market. By continuous commitment from all level of leadership

Q#1. How can an MNC successfully launch a product category that is new to the Indian market? Marketing MixQ#2. How can an MNC fight off local competitors, who are arguably closer to consumers?By building a Loyal Consumer Base:Up to 2 decades, Nestle kept focus on Target Market i.e. MotherThe communication remained consistent and built around Mother & Childern bondHighlight the convenience of productReached out to school kids by sponsoring quiz and organized Minithons to encourage active life styleWide spread sampling were introduced to go reach teenagers and adult.Q#2. How can an MNC fight off local competitors, who are arguably closer to consumers?By building strong Distribution Network:2 tier Distribution System that is with own distributor and with wholesalers and redistributor.Effective supply chain Strong emotional connection of Sales team with the brand

Q#3 How can an MNC bring its global competencies to strengthen its competitive advantage in the Indian market? In 1947, the Maggi products, from seasoning to soups, become part of the Nestl family following the merger with Alimentana S.ANestle brought worldwide competence to the operations in IndiaQuality is the is kept utmost important in ManufacturingFor most of the part, manufacturing was kept in house by using latest technology with better price of equipment. Process improvements were implemented for debottlenecking of process and for recovering and minimizing wasted materialTo keep the cost low as major part of it was material, supplier development program were initiated for quality and cost effective supplierOther major driver of cost was packaging, product shape was kept constantR&D on packaging material for alternate material for packaging to minimize the cost while keeping the quality same.Highest quality and lowest cost was the USP of Maggi

Q#4 How does an MNC continue to renew itself toward off competition from other global competitors? By repositioning the Brand from Taste and Convenience to Taste and Health i.e. using Health Platform to broaden the consumer i.e. young adults Basic product benefit - good taste with proper nutrition levels and good healthDifferent products were launched and extended the Health and wellness push to other products like soups along with noodlesBy Brand Extension and penetrating into bottom-of-the-pyramid segment by selling Chotu into low income consumersCommunication was done in local language other than English and HindiDistribution system was revolutionized using Sting Boys carrying products in cycles and reaching the small areasBy launching Communication Campaigns to build emotional connection with consumers

Q#5 The multi-level leadership that is required to succeed in the Indian marketNestle India organized as Business Units with Central Support functions servicing all businessSupport and help from Corporate office from experts in head office and from peers in cluster countries.Focusing on the priorities from Head and continuous commitmentLocal Food Head, trained and experienced in MNC environment.Using local experienced staff in key position who are well aware of culture and consumer priorities.