Marketing Plan for: A seasoning product My proposed new product is: Noodle mania

It is being made to beat the magi market share

Proposed by: Si a Sankar !""#!!""$% Submitted to: &' enkateswarlu

Associate proffesor

Executive Summary
&his study focuses on the seasoning industry consumption specifically the all(in(one seasoning' Noodle mania was positioned as the top all(in(one seasoning mi) in the industry' * en though there are many competitors in the maket+ they still maintain their position+ because of their highest ad ertising share Target Market &argeting refers to e aluating and deciding from amongst the arious alternati es+ which segment can be satisfied best by the company' &he noodle mania ,rand ha e mainly targeted the -ids+ .outh+ /ffice 0oers 1 2orking 2omen who fall into the category of con enience(sa y time misers who would like to get something instant and be o er with it 3uickly' Positioning Market Positioning is the act of designing the company4s offerings and image to occupy a distincti e place in the minds of the target market' &he goal of positioning is to locate the brand in the minds of consumers to ma)imi5e the potential benefit to the firm' noodle mania has positioned itself in the SNA6-S category and not in the meal category since Indians do not consider noodles as a proper food item' &herefore noodle mania ha e de eloped its brand image of instant food products with positioning statements such as " minutes noodles and *asy to cook+ good to eat'

Company Description of Maggi-nestle

Maggi is a Nestl7 brand of soups+ stocks+ bouillon cubes+ ketchups+ sauces+ seasonings and instant noodles' &he original company came into e)istence in !8%" in Swit5erland+ when 9ulius Maggi took o er his father:s mill' ;e 3uickly became a pioneer of industrial food production+ aiming to impro e the nutritional intake of worker families' Maggi was the first to bring protein(rich legume meal to the market+ and followed up with a ready(made soup based on legume meal in !88<' In !8=%+ 9ulius Maggi founded the company Maggi 0mb; in the 0erman town of Singen+ where it is still based today' In parts of 6hina+ >ietnam+ &hailand+ &aiwan+ Philippines+ Singapore+ India+ Pakistan+ *urope+ Me)ico+ Malaysia+ ,runei+ 0erman(speaking countries+ the Netherlands+ the 65ech ?epublic+ Slo enia+ Slo akia+ Poland and @rance+ AMaggiA is still synonymous with the brand:s AMaggi(2Br5eA CMaggi seasoning sauceD Cin Spain it is sold under name 9ugoD+ a dark+ hydroly5ed egetable protein(based sauce which is ery similar to *ast Asian soy sauce+ e)cept it does not actually contain soy' Prior to the early "EEEs+ Maggi seasoning was an actual soy sauce+ using soy and wheat as some of their ingredients+ howe er a change in ingredients resulted in the omission of soy' It was introduced in !88< as a cheap substitute for meat e)tract' It has since become a well(known part of e eryday culinary culture in Swit5erland+ Austria and especially in 0ermany' It is also well known in Poland and the Netherlands' Maggi 2Br5e has huge popularity in Serbia and Macedonia despite not being officially a ailable in those countries' Maggi is also immensely popular in *ast Asia+ Southeast Asia+ and South Asia+ where Maggi seasoning is used in many soups+ stir(fries+ marinades and as a dippingFtopping sauce' Maggi seasoning is commonly used in Asia as a Asoy sauceA' &he bouillon cube or AMaggi cubeA+ which was another meat substitute product+ was introduced in !=E8' ,ecause chicken and beef broths are so common in the cuisines of many different countries+ the company:s products ha e a large worldwide market' &oday+ Maggi is known throughout the world for its dry soups+ seasoning sauce and instant noodle dishes' In New Gealand+ Maggi /nion Soup mi) is often combined with reduced cream to create an onion dip for potato chips that has come to be generally accepted as a -iwi fa orite' In India+ Maggi instant noodles are a fa orite for an anytime meal' @rom dorm rooms of colleges to late(night cooking in home kitchens+ it4s an all(

time fa orite' Maggi 6omes to India H teething troubles Maggi noodles was launched in India in theearly!=8Es' 6arlo M' Ionati+ the present 6hairman and Managing Iirector of Nestle India Jtd+ brought the instant noodle brand to India during his short stint here in the early eighties' At that time+ there was no direct competition' &he first competition came from the ready(to(eat snack segment which included snacks like Samosa+ biscuits or maybe peanuts+ that were usually Kthe bought out4 type' &he second competition came from the home made snacks like Pakore or sandwiches' So there were no specific buy and make snackL Moreo er both competitors had certain drawbacks in comparison' Snacks like Samosa are usually bought out+ and outside food is generally considered unhygienic and unhealthy' &he other competitor+ Khomemade Ksnacks o ercame both these problems but had the disad antage of e)tended preparation time at home'

Strategic Focus and Plan

Nestle Noodle mania had the obMecti e to raise their market share C6urrent market share is almost =END+ promoting Noodle mania+ and positioning themsel es as healthy fast foods+ and as per the consumer feedback make changes in the product regarding packaging+ ingredients+ and special additi es' Also launch new ariants in the market' Noodle mania introduced Pa55ta which comes in " fla ours red and white sauce pasta+ also launched >egetable Multigrain noodles' &he company continuously focuses its efforts to better understand the changing lifestyles and of modern India and anticipate consumer needs in order to pro ide con enience+ taste+ nutrition+ and wellness through its products' ,60 growth matri)

S&A?S - Noodle mania >eg Atta Noodles - Noodle mania Pasta - Noodle mania Sauces 6AS; 6/2 - Noodle mania Masala @la our

OP*S&I/N MA?- Noodle 6hicken mania

I/0 - Noodle &omato+ @la ours mania 6urry

Michael Porter4s @i e @orces Model

Mission
&o be considered as the number one snacking option of India combining the alues of con enience+ taste and health'

!ision
&he Nestl7 global ision is to be the leading health+ wellness+ and Nutrition 6ompany in the world'

"oals
SP*6I@I6 0/AJS @/? "E!Q: "E!Q Share of Market (((((((((((((((((((((((((((((( increased by #N' Sales >olume ((((((((((((((((((((((((((((((((((((((((( increased by #N e ery year Profit ((((((((((((((((((((((((((((((((((((((((((((((((((( increased by #N e ery year ,rand Awareness ((((((((((((((((((((((((((((((((((((!EEN Iistribution Je el ((((((((((((((((((((((((((((((((((((( 8#N Strategies and #ction Plans P$%D&CT : Seek NAPA seal+ so that that customer will continue patroni5ing the product' P$'CE ' P(#CE distributors' P$%MT'%) : Increase ad ertising budget : Intensify distribution of the product F appoint more : 0i e additional discounts and freebies to the

consumer and maintain its affordable price'

Core Competency and Sustaina*le Competitive #dvantage

Nestl7 India is an effer escent 6ompany that pro ides consumers with products of global standards and is committed to long(term sustainable growth and shareholder satisfaction' &he company is known for its brands in the Milk Products 1 Nutrition+ Prepared Iishes+ 6ooking Aids+ and 6hocolates 1 6onfectionery segments' Nestl7 leads the alue sales of noodles in India with a market share of =EN' * idence to Nestl7:s domination of sales of plain noodles is the fact that India accounts for the highest sales for the company for its instant noodles brand Noodle mania+ among all its global offices' 2ith se en factories and a large number of co(packers+ it has grown into India4s largest food company' &he biggest brand in Nestle4s portfolio is Noodle mania Cit o ertook Nescafe about ten years agoD' Nestl74s obMecti es are to be recognised as the world leader in Nutrition+ ;ealth and 2ellness+ trusted by all its stakeholders+ and to be the reference for financial performance in its industry' 2e belie e that leadership is not Must about si5eR it is also about beha iour' &rust+ too+ is about beha iourR and we recognise that trust is earned only o er a long period of time by consistently deli ering on our promises' &hese obMecti es and beha iours are encapsulated in the simple phrase+ 0ood @ood+ 0ood Jife+ a phrase that sums up our corporate ambition'

Situation #nalysis
6urrent Situation: "E!" Share of Market (((((((((((((((((((((((((((( #=N in the food seasoning industry Sales >olume (((((((((((((((((((((((((((((((((((((( increased from the pre ious year Profit (((((((((((((((((((((((((((((((((((((((((((((((((( increased in profit ,rand Awareness (((((((((((((((((((((((((((((((((( %!N CPAI Sur eyD +

Magi4s shares in the market

Product Noodle mania has the same grams with other competitors' Price Much lower than other competitors but much higher than -norr when it comes to pricing' Promotion: &hey don4t ha e any regular promotions like discounts+ raffle or other promotional strategy to increase the sales but the sales is still increasing+ because of their highest ad ertising share' Place: &he consumer can buy the product in any Supermarkets+ 0rocery Stores or e en in Sari(Sari Stores'

S+%T #nalysis
Strength *stablished @amily ,rand Strong 0lobal 6orporate ,rand C NIJ D Speciali5ation in food processing category marketing and distribution in Prban Market leader Presence of other product segments of food category : Iairy Products+ 6hocolate+ Infant foods Pioneer and Jeader so !st mo er ad antage in Noodles+ Sauce+ -etchups and Soup market' Nestle symboli5ation of warm+ family 1 shelter ?esearch and Ie elopment Ii ision in India

 New Noodles Plant in Pttaranchal Inno ati e fla ors for Indian taste buds Iistribution 6hannels

2eakness

0eneric ,rand to Noodles in India Jow rural market presence constraints Pniform ,rand for all food category ,rand Proliferation ;ea ily dependent on one fla our ;ealth related issues

/pportunity

0rowing package and canned food market in India by !#N annually' ;igh brand awareness of Indian consumer /ther product category like ,iscuits+ 6hips and ?eady to *at Market still une)plored' /pportunity to be substitute to other snacks category of food products' Pne)ploited rural market Increasing number of working youth Affinity of Indians to 6hinese food

&hreats

6ompetitors with long history in product category Internationally like+ ;ein5 Sauce and ketchups of ;ein5 Indian+ &op ?amen in Noodle and -norr Soups' Single product focused competitors like ;ein5 sauce and

2ai 2ai Noodles' Jess *ntry ,arriers in the Market segment for product category I&64s strong base in Indian Market' Substitute Product to Product Segment 6ompetiti e pricing Strong presence of regional competitor

'ndustry #nalysis
6ompanies in the food processing industry deal with the transformation of finished food products from raw agricultural ingredients+ lengthening the shelf life of products in compliance with hygiene and health standards CS;A?PD' @ood processing industries include the following: cannery+ meat processing+ food packaging etc' &hese foods are often sold to wholesalers or retailers for distribution to consumers' &he industry is characteri5ed by intense competition+ with the most reliable firms+ such as Nestle+ performing well by focusing on efficiency in terms of fast processing and distribution C?eportJinkerD' More often than not+ the most successful companies within the food and be erage industry Csuch as Nestle+ -raft and Mars+ IncD implement a di ersification competiti e strategy where they spread out and add related or similar products to its e)isting core business' *conomically speaking+ the effect of the global economic meltdown has had a less impact in food processing industry than in other industries due to its rising demand for con enience food and ready to ser e products' ;owe er+ one of the challenges that all food processing companies face today is the rising price of raw ingredients such as corn+ wheat and dairy' /ther factors that affect demand for processed food are issues concerning dieting and obesity+ allergens+ and increased interest in the use of 3uality ingredients' /ne maMor key segment in the food processing industry is the increasing

growing market for organic food and health products' &he /rganic &rade Association reports that sales of organic food grew to o er S"8'< billion+ making up $N of total food sales' Sales growth was strongest for organic meat+ dairy+ fruits and egetables+ and bread and grains CPS /rganic &rade AssociationD' 6ompanies that wish to find success in the food processing industry must adhere to these factors+ as they ha e an undoubtedly maMor effect on the industry'

Competitor #nalysis
* en though it has been nearly three decades+ the brand has not faced any serious competition' Instead+ in all these years+ Noodle mania has grown e)ponentially to become a generic brand+ and has single(handedly taken the instant noodles category from being almost non(e)istent+ to a ?s !+"EE cr' one+ of which it currently has+ as per industry estimates+ a =E per cent share+ appro)imately' &he competitors of Noodle mania are the 9apan(based Nissin 0roup:s &op ?amen+ Nepal based 60 @oods: 2ai(2ai Noodles+ I&6 Sunfeast pasta noodles+ -norr Soupy Noodles+ ,ig ba5aar tasty treat and ;orlicks @oodles' Main competitors are &op ?amen and Sunfeast Pasta noodles' &op ?amen Smoodles: :Ion:t be a noodle+ be a Smoodle: was the ad ertisement that brought the &op ?amen brand into limelight when it was launched in !==!' >arieties: Packet Noodles: Macho Masala+ @unky 6hicken+ /ye &omato+ 6urry Smoodles+ and 6up Noodles: Spicy >egetable+ &angy 6hicken' Iistributor: Marico Industries PSP: :Ion:t be a noodle+ be a Smoodle' I&6 Sunfeast Pasta: I&6 launched India:s first instant pasta snack+ Sunfeast Pasta &reat in "EE#' Made from high protein Iurum wheat+ Sunfeast Pasta &reat is not fried and does not contain maida+ making it a nutritious snack' &his ready to cook pasta comes with a sauce maker inside the pack' >arieties: It is currently a ailable in four e)citing fla ors: Masala+ &omato and 6heese+ Sour 6ream /nion and 6heese' Iistributor: I&6 Jimited

PSP: Sunfeast is made from durum wheat and is promoted as a healthy alternati e to instant noodles made from the less healthy maida Ca type of wheat flour that is slightly lower in 3uality

Company #nalysis
6onducting promotional campaigns in schools is one of their main marketing acti ities' Ad ertising strategies: &he focus of the ad ertisements is on the children as they are their maMor consumers' A ailability in different pack si5es: Packing is the biggest plus point of Noodle mania market penetration' &hey ha e the product a ailable in all si5es to tap the categories of consumers' &here is a good inno ation present in the products' Noodle mania " minutes noodles+ 6up(o(Noodle mania+ Atta noodles etc' are the different forms of the same product a ailable in market'

Customer #nalysis
India is the largest consumers of Noodle mania noodles in the world' It was launched in !=8E by Nestle group of companies' Initially when it was launched in India it was targeted towards wrong target group: working women' After conducting research they found out the biggest consumer segment was the kids' &hey shifted their focus to this segment by arious tools of sales promotion like pencils+ fun books etc also the ads of Noodle mania showcased a hungry kid saying Mummy bhook lagi to which the mother replies ,as do minute' &he target group later on increased and

included youth+ office goers and health conscious people with income more than a lakh per annum' &his group usually comes under middle class and upwards residing in urban+ semi(urban and also rural areas'

Mar,et-Product Focus
Target Mar,ets As per a market research it was concluded to target primarily the children as they liked the taste of Noodle mania noodles and were the largest consumers of the product' &he market has been di ided according to the following considerations: Demograp-ics !' ?egion: Prban+ semi(urban+ rural CrecentD "' /ccupation: 2orking professionals+ self(employed+ students Q' Social class: Middle class and upwards

.e-avioural !' /ccasions: ?egular and e eryday user H Prban' Iepending on the temporal aspects of consumer4s lifeCtime of day+ week+ month and yearD H ?ural "' Psage rate: ;ea y user(urban+ light(rural+ medium(semi(urban

Positioning Initially Nestle tried to position Noodle mania in the platform of con enience+ targeting the working women' ,ut it found that sales were not picking up despite of hea y promotions' ?esearch then showed that kids

were the largest consumers of this brand' ?ealising this Nestle then repositioned this brand towards kids using sales promotions and smart ad ertising' Noodle mania has always positioned itself as healthy noodles H &aste bhi health bhi &hrough its ads' Nestle India Jtd' CNIJD positioned Noodle mania as a :fun: food for kids which mothers could prepare easily' &aglines like :Mummy+ bhookh lagi hai: CMom+ I:m hungryD+ :,as "(Minute+: and :@ast to 6ook 0ood to *at: effecti ely communicated the product:s benefits to target consumers' &hese ads had become so popular that the tagline :,as "( Minute: immediately reminded Indian consumers of Noodle mania noodles e en se eral years after the ads were taken off the &>' &o pre ent its top competitor+ &op ?amen from hampering its market share some inno ations were re3uired' It also had to deal with the negati e perception of Noodle mania being unhealthy in this health conscious market' &his is the reason Noodle mania >eg Atta Noodles+ Noodle mania Ial Atta Noodles were introduced' 6up(/(Noodle mania was introduced to target customers who alues time+ con enience as well as nutrition' Added ad antage of 6up(/(Noodle mania is no need of cleaning plates and lesser time re3uired for preparation' Its appeal is ;ealthy Snack Anywhere+ Anytime' Market position of Noodle mania: !' Jeads in instant noodles and sauces' "' Stands second in healthy soups' Q' Market share of noodles( =EN Mar,eting mix Product: Noodle mania has come up with arious products according to the needs of consumers' Some of them became ery popular and some of them were total failure' &he products that passed the test of time are as follows: Noodle mania "(Minute Noodles is one of the largest 1 most lo ed snack food brand that defines the Instant Noodles category in India' It is now a ailable in # fla ours: Masala+ 6hicken+ &ricky &omato+ and &hrilling 6urry 1 ?omantic 6apsicum'

Noodle mania >egetable Multigrain5 Noodles is a product which is a source of Protein+ 6alcium and @ibre+ and has added

egetables' &he inspiration for the product comes from the growing consumer preference for a healthier lifestyle'

Noodle mania >egetable Atta Noodles is healthy because it is made of wheat flour and has more real egetables and is packed with the power of fibres' Noodle mania 6uppa Mania is a combination of all the abo e' It4s an easy to carry on(the(go 6up format+ Noodle mania 6uppa Mania comes in two ariants H Masala .oL And 6hilly 6how .o'

Pac,aging: Noodle mania is packed in the yellow packets' &he tip of the packet is 5ipped so that the contents can easily be spilled without wasting it' It has sol ed the problem of storage' &he thickness of packets is increased so that the contents can be easily poured without much wastage' Promotion: / er the years Noodle mania became an integral part of the Indian household like other @M60s like 6oke or Pepsi' &> commercials played an important part in it' *lements that ha e stayed constant in any Noodle mania film include the Mingle (( KNoodle mania+ Noodle mania+ Noodle mania4 in a sing(song oice+ the family setting+ and the Ktwo minutes4 promise+ which started off as a PSP+ but took a backseat e entually' Noodle mania has generally stayed away from taking the celebrity endorsement route' All the ads for the brand usually focus on the mother(child relationship' &he mother and child are the celebrities for Noodle mania' /ther inno ati e ads like the Noodle mania oiceo er campaign which is a collection of short ignettes+ showcasing consumers4 memories of Noodle mania Must brought Noodle mania closer to the heart of India' As a part of its promotional dri e+ Noodle mania has launched a website+ meandmeri'in+ where consumers can upload their Noodle mania moments and submit their fa ourite Noodle mania recipe' 6onsumers+ whose stories or recipes are a hit with the company+ will get a chance to be featured on Noodle mania packs or ads' Apart from the &> commercials they promoted the product by !' Iistributing free samples'
"' Q'

0i ing gifts on return of empty packets' Iry sampling(distributing Noodle mania packets

$'

2et sampling ( distributing cooked Noodle mania'

#' A ailability in different packages #Egm+!EEgm+"EEgm+etc'' and <' *ffecti e &agline 6ommunication' Place: Nestle Noodle mania Noodles is famous not only in urban areas but also in rural areas' It is rightly a ailable at number of retail shops and malls so that consumers can easily purchase the product without much efforts' Price: In terms of pricing company has placed its product in such a way that products enMoy huge benefit against the competitor' &he price also enables huge opportunity for impulse buying' Products are priced in round off figures e'g' ?s !E+ ?s #E' As a result of such pricing strategies products are the only option in the range of con entional snacks category'

Financial Data and Pro/ections

Sales by value @or the year "EE!Q ProMected alue of instant noodles category T ?s' $#EE lakhs &he desired market share by alue T 8EN &herefore+ proMected alue the sales need to be 8EN U ?s' "E T ?s Q<EE lakhs Sales by volume A erage retail price per !EE gms of Noodle mania Cacross all S-PsD T ?s'= Price for one thousand &onnes of Noodle mania T = U !EV% rupees ProMected alue of sales T ?s' Q<EE lakhs

@or the # year re enue proMections

.ear "E!Q "E!$ "E!# "E!< SaleClakhsD #EEE ##EE <E#E <<## re enue ClakhsD $#EEE $=#EE #$$#E #=8=#

"E!% %Q"E
%rgani0ation

<#88E

/rgani5ational structure is the formal framework by which Mobs tasks are di ided+ grouped+ and coordinated' Nestl7 Noodle mania is a functionbased organi5ation' &he tasks are di ided into separate Mobs and then these Mobs are grouped together under different departments i'e' functional departmentali5ation is found in organi5ation' *ach maMor area is kept under the manager who is specialist in that concerned field and is responsible for all acti ities+ which that department performs /rgani5ational structure of Nestle Noodle mania is hierarchical'

&here is a chain of command that e)tends from upper organi5ation le els to the lowest le els and clarifies who reports to whom' &he orders mo e from upward to downward and suggestions mo e downward to upward direction' &he continuous impro ement section is made for this purpose' It encourages employees to gi e their suggestions and share the new ideas' &he Mobs are formali5edR there are e)plicit Mob descriptions+ numerous organi5ational rules+ and clearly defined procedures co ering work procedures' ,ut in spite of formal rules and regulations+ Nestl7 keeps on changing to keep a pace with the changing en ironment' So+ it is strict but not rigid organi5ation' In effort to be more fle)ible and responsi e+ there has been distinct trend in this organi5ation toward decentrali5ing decision(making'

!'

Implementation Plan @or the product to ha e a !EEN consumer awareness+ the company should sponsor on some cooking shows so that the product will standout and will be known more by the public especially all the people who lo es to cook' &he product can stay as the market leader in seasoning mi) by increasing more the ad ertising strategy+ so that it will be consistent and will stay as the market leader+ because of this the consumer will always remember that the product is readily a ailable anywhere and anytime they want' &o emphasi5e the features of the product the company needs to modify the product specification such as the NAPA seal+ this will assure the consumer that Noodle mania products are all safe and of high 3uality' &o promote the product as a healthy food among mothers and single working professionals' &o maintain the price+ in order for the consumer to continue patroni5ing the product' &o assign more distributors F increase distribution le el'

Evaluation and Control @or the new product to keep its marketing plan mo ing we ha e to choose a best plan sustainable and adaptable and also should moti ate the sale force to go through the this plan and make them understandable the plan e)ecuted

is implemented properly + should be checked properly by the marketing manager now and then' Any flaws in the plan should be identified in the testing or in the inception itself' &he new product Noodle mania will definitely lea e its mark+ and beat the best product in that line magi+ which is ha ing a huge market' &he Noodle mania has the uni3ue features and tastes which will surely grab the market of others'