Existing market channels for Maggi Ketchup

The marketing channels for maggi can be broadly divided into two aspects
1. Market channels through push strategy
Through a push strategy maggi tries to influence the retailers and wholesalers and big retail chains to
carry, store, promote and sell its ketchup to the consumers. The influence can be through discounts,
free gifts etc. In the due course, the manufacturer buys shelf space too so that the consumers find its
product at the high visibility areas in the store.
2. Market channels through pull strategy
Through this strategy the manufacturer compels the end users to reach the manufacturers
products. This is done through excessive marketing of the channel through
Indirect ways such as showing the product in popular movies or tv shows
Promoting the product through celebs
Advertisement of the product which provides another complementary product such asa
maggi noodles pack or any other Nestle product etc.
This pull strategy is attributed to the brand image of maggi and its brand loyalty.
Physical distribution channel
Maggi a leading manufacturer of ketchups in India presently uses the following for channels:
Traditional distribution channels

Modern Distribution channels

Manufacturer

Manufacturer

Manufacturer

Manufacturer

Carry and Forward

agents (CFAs)

Carry and Forward

agents (CFAs)

Distributors

Special Distributors

Manufacturer

Wholesalers

Manufacturer
Retailers

Manufacturer
Consumers

Manufacturer

Manufacturer

Special retail stores e.g.

big bazar

In the traditional channel the product flows from the manufacturer to the carry and forward
agents. These CFAs are small in no. in the country and take care of all warehousing of the
product as well as its distribution to the distributors.
To reach far flung places where the demand is scare, the distributors only send the product to
wholesalers who either directly sell or sell to a few retailers.
Places where demand is high, distributors forward the product to the wholesalers who again
forward it to retailers according to their quantities demanded. The consumers are served
through these retailers.
In case of the modern distribution channels CFAs cater to the special distributors who are again
present in very small numbers in the country.
These special distributors only cater to the special n long chain retail stores like big bazzar and
lifeware.

Fitness of the Channel Strategy

The robust distribution channel of Maggi provides a market penetration of the ketchup to almost 47% of
the target customers of upper and middle level consumers. The market size is of Rs.220 crore.

The introduction of CFAs in this distribution channel as a third party takes the clumsiness and
responsibility of handling, warehousing and transportation to the vast market.
The presence of special distributors to cater to the retail chains and the existence of a separate
traditional channel to cater to small retail channels brings out two different channels which
helps in many ways such as no clutter in distribution, mapping the demand appropriately,
providing products according to the demands without delay etc.

Suggestions for improvements:

Maggi should also go for a direct marketing channel in which it can approach restaurants and
bigger fast food outlets in which Maggi can influence them for bulk deals or use them as
medium of advertising to their consumers.
Maggi can also associate with crockery competitions or be sponsors for such shows to increase
its market penetration and bulk deals.
Although the CFAs take a lot of responsibility of warehousing and transportation of the Maggi
Ketchup onto them but in situations in which they charge the manufacturer a hefty fees for such
a service Maggi can directly reach the distributors by just enhancing its warehousing facilities.