Professional Documents
Culture Documents
PROJECT REPORT
ON
NESTLE MAGGI
GROUP 2 (SECTION B)
ANSHUL GOYAL- 2014071
ANURAG TIBREWALA- 2014072
ASHISH SOOD - 2014073
ASHLESHA SALKAR- 2014074
ATANU PRAMANIK- 2014075
CHRISTINA RAJ- 2014076
Contents1
fmcg ................ ...01
Impact Of Five Forces On Profitability.........................................03
Distribution Channel05
Stp Analysis ................................................................................................................................................. 06
Marketing Mix ............................................................................................................................................. 08
Consumer Behaviour..10
Swot Analysis ...................................... 14
Market Analysis ....................................................................................................................................... .16
Marketing Strategy & Marketing Plan ...................................................................................... .16
References....................................................................................................................... 18
FMCG
Fast-Moving Consumer Goods (FMCG) are products that are sold quickly and at relatively low cost. The
Indian FMCG sector is the fourth largest in the economy and has a Market size of US$13.1 billion. Wellestablished distribution networks, as well as intense competition between the organized and
unorganized segments arethe characteristics of this sector. FMCG in India has a strong and competitive
MNC presence across the entire value chain. It has been predicted that the FMCG market will reach to
US$ 33.4 billion in 2015 from US $ billion 11.6 in 2003. The middle class and the rural segments of the
Indian population are the most promising market for FMCG, and give brand makers the opportunity to
convert them to branded products. Most of the product categories like jams,
toothpaste, skin care, shampoos, etc, in India, have low per capita consumption as well as low
penetration level, but the potential for growth is huge.
NESTLE
Nestl was formed in 1905 by the merger of the Anglo-Swiss Milk Company, established in 1866
by brothers George Page and Charles Page, and Farine Lacte Henri Nestl, founded in 1866 by
Henri Nestl.
Swiss multinational food and beverage company, the largest food company in the world
measured by revenues.
Nestl has 447 factories, operates in 194 countries, and employs around 333,000 people. It is
one of the main shareholders of LOreal, the worlds largest cosmetics company.
Nestl has a market cap of more than 200 billion U.S. dollars and in 2013, consolidated sales
were 92.16 billion and net profit was 10.02 billion.
Nestle has more than 8000 brands and its largest international competitors are PepsiCo, Kraft
Foods, Unilever and Mars Incorporated.
MAGGI
In India Maggi instant noodles are very popular; "Maggi" is synonymous with instant noodles.
Nestle maggi has 60% share in India where it was the first instant noodle brand
Other popular brands include Top Ramen Smoodles and Cup Noodles manufactured by IndoNissin Ltd, AA Nutritions's Yummy, ITC s Yippee noodle.
Local flavours such as masala and chicken dominate. A package sells for 1012 rupees.
Sales
MAGGI
OTHERS
WHY MAGGI
Its a Fast-Moving Consumer Good, that is sold quickly and at relatively low cost.
Though the profit margin is relatively small, they are generally sold in large quantities; thus, the
cumulative profit on such products can be substantial.
MAGGI is probably the most classic case of low margin and high volume business.
We will get to know a large supply-chain business starting from the manufacturer to the retailer.
It is a very large scale business with mostly perishable products so doing everything on time is
very important.
MAGGI Noodles
The fast moving consumer goods (FMCG) segment is the fourth largest sector in the Indian economy.
Maggi noodles is a brand of Instant noodles by Nestle. It was founded by the Maggi family in Switzerland
in the 19th century and is the Iconic brand of Nestle. It is not only a hit brand in India but globally as
well.
As part of project we are required to interact with at least 3 retailers. The following is a questionnaire
which was prepared by us and the answers are recorded as follows:
Q-1What are the competitive products of Maggi that you sell?
A-1 The competitive products of Maggi that they sell are Yippee and YAI-YAI.
Q-2 What is the general stock turnover time of Maggi variants?
A-2 Stock generally comes every 2 weeks.
Q-3 Maggi comes in how many varieties?
A-3 Maggi comes in five varieties-Veg, Chicken, Atta, Multigrain and Rice.
Q-4In how many variety does Yippee come?
A-4 Yippee comes in 2 varieties Veg and Chicken
Q-5What is the credit period given to you by Nestle Maggi?
A-5 After the receipt of stock one week time is given by Nestle Maggi to make the payment.
Q-6What is the main factor besides demand that enables you to sell Maggi? What is the uniqueness
that Maggi offers to you?A-6While interacting with the retailer this is the most interesting thing that we
got to know. Retailer told us that Maggi pays them rent for placing the container or box in which Maggi
is displayed and they are asked to place it strategically in the front part of the shop so that it is visible to
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everyone and at the same time ITC Yippee was also in the shop but it was placed at the back so it was
less visible as compared to Maggi. This is the most important marketing strategy of Maggi which makes
it not only the market leader but Maggi in the Indian market context has become synonym of instant
noodles.
DISTRIBUTOR
WHOLESALER
RETAILER
END CUSTOMER
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REDISTRIBUTION
SELECTION OF DISTRIBUTORS
The following criteria are followed by Nestle while selecting a distributor:
1. CAPITAL INVESTMENT
Depends on both present and future capital investments by distributors.
2. RELEVANT EXPERIENCE
Prior experience in FMCG sector is preferred to save on training expenses.
Distributor shall not be dealing in competitors products.
Should handle entire range of Nestle products.
3. INFRASTRUCTURE
Godown/ storage space with appropriate refrigeration as per product needs.
Delivery vehicles
Salesmen
STP ANALYSIS
Segmentation
Targeting
Positioning
Age
Kids
Lifestyle
Teenagers
2- minute noodles
Eating habits
Working women
SEGMENTATION
This launch of Maggi noodles was the platform for an entirely new food category of instant noodles in
India. It quickly gained popularity as a quick snack and was widely accepted in the Indian market. Its
main focus was the age group of 6-14 years, which has a fascination for tasty and fast-food.
In order to target the health conscious consumers, in the year 2005, Nestle India Limited expanded by
brand extension offering various healthy food products under the brand name Maggi.In an effort to
extend its healthy foods concept, in May 2006, Nestle launched a new variety of instant noodles product
called Maggi Dal Atta Noodles (Dal Atta Noodles) under the popular Maggi brand. These Dal Atta
Noodles, unlike the traditional Maggi noodles, were made of whole wheat and pulses, and were
positioned as a 'healthy instant noodles
TARGETING
Maggi 2-minute instant noodles are associated with convenience and taste, and is currently accepted as
a valid filling snack between meals. Maggi will continue to leverage its brand equity and target the
following segments for its product.
Children and teenagers: Its primary target audience is the children in the age group between 614 years. This is a large segment and is Maggis stronghold. This age group has largely similar tastes
and is traditionally targeted by Maggi. These segments consider Maggi as a snack which is tasty,
easy to make and different from the contemporary Indian snacks. For these segments innovative
products is a major criterion, though certain other aspects are also preferred. The curly shape of the
noodles is also a fascination for this segment. Maggi has skillfully shifted its focus from the lady of
the house to the end- consumer i.e. the children, which led to its capturing of the market in the
noodles sector. Also Maggi has become a food of the category of people with erratic working hours,
when timely meals are not available then Maggi is automatically the food of choice since its tasty
and convenient to prepare in a short time span.
Office going people and working women: The households today have children whose parents are
working and a maid is usually responsible for preparing meals. In such cases the preferred food of
choice during snack time is Maggi, as it is easy to prepare and it is also the childrens preference
over other snacks.
POSITIONING
Maggi noodles by Nestle comes under the food products category and can be specifically placed
under instant food category. Maggi was introduced in 1982 as a snack food and since then has
gone through a series of repositioning and brand extension strategies to suit the need of the
time.
'Fast to Cook Good to Eat is the tagline for Maggi.
Nestle India Limited (NIL) in the past years has aggressively promoted Maggi noodles via various
methods like free sample distribution, distributing gifts in exchange of empty packs, etc. The
company used its advertising strategically to create an effective impact on the communication
of the benefits of the product to its target consumers.
Its advertisements projected Maggi as a fun snack for the kids which gave the mothers ease of
preparation. Use of taglines like 'Mummy, bhookh lagi hai' (Mom, I'm hungry), 'Bas 2-Minute,'
(Only 2 minutes) and 'Fast to Cook Good to Eat' effectively communicated the product's benefits
to the target consumers.
It has tried to cater to the low income householders by introducing the Rs. 5/- pack. It was
designed to be consumed as an evening snack. The commercial designed for the same show kids
of the fore-mentioned age group in the evening time consuming Maggi. Over the period of time
with the need for healthy food (Vegetable Atta Noodles) gaining ground, it repositioned itself by
positioning it as healthy food. This was of paramount importance as the buyers in this case were
mothers who were going to feed their children who were in the growing age group. Given the
special care that mother take of children in this age group Nestle has been trying to promote the
healthy part more effectively.
It is packaged in bright yellow color given that this color is quite attractive to younger people.
This color makes Maggi both easily distinguishable and also lively.
It has a strong distribution channel and its availability is present in both traditional retail (kirana
stores) and up-market posh supermarkets.
It sells mostly in single size serving however it has innovatively changed the packaging allowing
multiple serving inside the same packet. Through this it wants to increase brand loyalty.
Typically the higher sizes are for regular consumption households and are available at slight
discounts. Also from time to time it has been trying to leverage and rejuvenate the brand with
interesting Brand extensions.
MARKETING MIX:
PRODUCT
In terms of variety there is a lot of demand for maggi masala and lesser demand for curry and cuppa
mania. Maggi is provided in four different ingredients namely Maggi Vegetable Multigrain Noodles,
Maggi 2 Minute Noodles, Maggi Veg Atta Noodles and Maggi Cuppa Mania.
To diversify and to sustain as a leader maggi also provides Maggi Sauces, Maggi Pichkoo, Maggi Pazzta,
Maggi Magic cubes, Maggi BhunaMasala, MaggiCoconut MilkPower, MaggiPasta & Pizza Sauce
Maggi Pichkoo etc.
Maggi differentiates its Product from its competitors in the sense that Maggi Masala Noodles come in
packs of 150,300,450,560 gm Pouch and Atta Noodles come in 80 gm Pouch, Noodles Chicken come in
152 gm Pouch. Since Maggi comes in different sizes and there is wide variety of products which
differentiates
Maggi from its competitors while you can find Yippee Noodles magic masala pack only in 75gm Pack
and 280gm Pouch at the price of 10 Rs and 40 Rs, so there is less variety in terms of Product
differentiation in Yippee whereas Yai-Yai is available in single pack and single flavour. That why Maggi
has edge over its competitors.
PRICE
The basic strategy of instant noodles is that it should be priced low so that it is available for everyone.
Nestle Maggi which is the market leader sells maggi in the denominations of Rs.5,10,15,20 and 80 for
the family pack thus making it accessible for all. Generally a 5% margin is available for the retailers.
Market offerings: Maggi: Available in packs ranging from Rs. 5 to 80. Different flavours are priced
differently for eg. The atta noodles variety costs Rs. 20 whereas the plain masala variety costs Rs.10.
In India instant noodles is still considered to be a snack item and thus its demand is very price sensitive
thus companies are left with no alternatives but price competitively for the different variants.
PLACE
Nestle Maggi Noodles has been started by Nestle in India, famous not only in urban areas but also in
rural areas. It is rightly available in number of retail shops so that consumers can easily purchase them.
Nestl India manufactures Maggi from 8 factories throughout India, as:
1.
2.
3.
4.
5.
6.
7.
8.
PROMOTIONS
The Maggi noodles' tagline, 'Fast to Cook Good to Eat' was also in keeping with this positioning.
They promoted the product by
1.Distributing free samples.
2. Giving gifts on return of empty packets.
3.Dry sampling-distributing Maggi packets.
4.Wet sampling - distributing cooked Maggi.
5.Availability in different packages 50gm,100gm,200gm,etc.. and
6.Effective Tagline Communication.
Through its ads, NIL positioned Maggi as a 'fun' food for kids which mothers could prepare
easily. Taglines like 'Mummy, bhookh lagi hai' (Mom, I'm hungry), 'Bas 2-Minute,' and 'Fast to
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Cook Good to Eat' effectively communicated the product's benefits to target consumers.
These ads had become so popular that the tagline 'Bas 2-Minute' immediately reminded Indian
consumers of Maggi noodles even several years after the ads were taken off the TV.
31-40 Years
13%
26-30
years
37%
10
18-25
Years
47%
Frequency
30
0
30
Percentage
100%
0%
11
Response
8
22
30
Percentage
22.6%
73.4%
Motivational Factor
Loyalty
13%
Quality
Assurance
15%
Reliability
17%
Taste
19%
Price
18%
Ease to
make
18%
Maggi Variants
Cuppa mania
17%
Vegetable
multi grain
noodles
3%
Atta noodles
3%
12
2 minutesMasala
Maggi
77%
Ques7) Which of the following brand would you like buy if price is not taken into consideration?
Response: In this analysis we found that if price is not taken into consideration respondent will buy
Maggi noodles.
Knor
7%
Maggi
80%
Ques8) On the basis of past experience would you like to buy the product(maggi) again and also
suggest to you family and dear ones?
Response: Out of 30 respondents 24 respondents would like to buy and refer this product to their family
and dear ones, let alone customer satisfaction level of this product is 80% .
Yes
No
Total
Satisfaction level
24
6
30
80%
Ques9) What comes first in your mind when you hear the word Maggi?
Response: Here we tried to check the perception of consumer towards the product and we found that
out of 30 respondents, for 24 respondents Maggi is just Noodles and for rest of the 2 respondents
Maggi is a Snacks.
13
these
0%
Noodles
80%
14
Target
Mothers: as they purchase and want healthy food for their children.
Positioning
It attacks the largest selling variant of Maggi, Maggi Masala, and gives consumers the choice of
two masala Magic and Classic.
Maggi comes in rectangular shape and while cooking it is broken into two pieces. On
the contrary Yippee comes in round shape and can easily fits into round vessel with no breaking.
The biggest problem with cooked Maggi is that it is to be eaten when freshly cooked. Get sticky
becomes inedible. Yippee promises that Yippee noodles can be eaten even after some time.
15
Indias noodles market is estimated at over Rs. 3,000 crore in annual sales and includes pasta, vermicelli
and instant noodles. It is growing at 20% per annum. Nestle is the market leader with 58.3% market
share in the overall category and over 80% in the pure noodles category. Knorr managed to grab a
market share of only 2.6% in a span of two years while even after a late entry ITCs Yippee captured a
market share of 6% in a year, according to data from industry researcher Nielsen. Nestles Maggi has
been synonymous with noodles and both Nestle and ITC have also penetrated the market with Rs.5
packs. Top Ramen from Nissin Foods of Japan, which entered the country in 1988, has a share of 4.3%.
In 2010, ITC entered the Rs. 2000-3000 crore instant noodles category.
Whereas, Maggi offers various veg and non-veg flavors, with numerable variants in veg. Yippee should
come up with more mass appealing Indian flavors. And also consider getting into the healthy noodle
segment.
Schools can also be targeted for awareness among the kids because they are the major consumers. The
color of Yippees packaging is attractive and eye-catching, it uses yellow and red colors which are a part
of the Maggi packaging too. Yippee can possibly add a small toy or sticker to their packets, which will
create more enthusiasm among the children.
Target young consumers who are about to start eating noodles (i.e. children of the age group 3-6 years).
Instigating the brand Sunfeast Yippee from a young age can help the brand in the long term sustenance,
wherein in a few years the children will connect to the brand Yippee and get attached to the product
with a sense of nostalgia.
Maggi launched the Me and Meri Maggi, where brand attachment of consumers was taken advantage
of and they were told to share their stories related to Maggi. Yippee could bring in a brand ambassador
who can help connect the consumers to the brand.
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REFERENCES:
DADHICH, A. (n.d.). PRESENTATION ON PRODUCT STRATEGIES(MAGGI). Retrieved from
SLIDESHARE: http://www.slideshare.net/ashudadhich/maggi-product-stratgies
MAGGI. (n.d.). Retrieved from maggi: http://www.maggi.com/
Marketing
theory.
(n.d.).
Retrieved
from
BUSINESS
CASE
STUDIES:
http://businesscasestudies.co.uk/business-theory/marketing/marketing-mix-price-placepromotion-product.html#axzz3AHbAoD8E
NESTLE
COMPANY.
(n.d.).
Retrieved
from
http://www.ukessays.co.uk/essays/marketing/nestle-company.php
UK
ESSAYS.CO.UK:
sailakshmi. (2010, MARCH 31). MARKETING STRATEGIES. Retrieved from marketingstrategysai.blogspot: http://marketingstrategy-sai.blogspot.in/2010/03/maggie-noodles.html
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