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GNIMS PROJECT ON MAGGI NOODLES SUBJECTMARKETING MANAGEMENT PROF- MRS.ANNIE PILLAI GROUP MEMBERS:Heena Kothari -16 2.

Rachana Patel-24 3. Tanvi Sanghavi -31 4. Nidhi Savla-32 5. Chandan Sethi-33


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MARKETING MANAGEMENT MARKETING


It is generally understood as distribution and selling. Marketing is a comprehensive term and it includes all the terms resources and economic activities necessary to direct the flow of goods and services from producer to the consumer. Philip kotler defined marketing as Social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging product and values with others. Needs, wants and demands-products are produced or created and sold to satisfy the needs of consumers. The desire to have certain goods to satisfies the needs can be termed as wants The American Marketing Association offers the following formal definition: Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing
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customer relationships in ways that benefit the organization and its stakeholders.

EMERGENCE OF MAGGI
The industrial revolution in Switzerland in the late 1800s created factory jobs for women, who were therefore left with very little time to prepare meals. This wide spread problem grew to be an object of intense study by the Swiss Public Welfare Society. As a part of its activities, the Society asked Julius Maggi miller to create a vegetable food product that would be quick to prepare and easy to digest. Born on October 9, 1846 in Frauenfeld, Switzerland, Julius Michael Johannes Maggi was the oldest son of an immigrant from Italy who took Swiss citizenship. Julius Maggi became a miller and took on the reputation as an inventive and capable businessman. In 1863, Julius Maggi came up with a formula to bring added taste to meals. Soon after he was commissioned by the Swiss Public Welfare Society, he came up with two instant pea soups and a bean soup - the first launch of the Maggi brand of instant foods in 1882 83. Towards the end of the century, Maggi & Company was producing not just

powdered soups, but bouillon cubes, sauces and other flavorings. The Maggi Company merged with Nestl in 1947. NESTL family of fine foods and beverages. Under the Maggi brand, which is today known worldwide for quality and innovation, Nestle offers a whole range of products, such as packaged soups, frozen meals, prepared sauces and flavorings.

NESTLE MAGGI IN INDIA


Maggi Comes to India teething troubles Maggi noodles was launched in India in the early1980s. Carlo M. Donati, the present Chairman and Managing Director of Nestle India Ltd, brought the instant noodle brand to India during his short stint here in the early eighties. At that time, there was no direct competition. Nestl has been a partner in India's growth for over nine decades now and has built a very special relationship of trust and commitment with the people of India. The Company's activities in India have facilitated direct and indirect employment and provides livelihood to about one million people including farmers, suppliers of packaging materials, services and other goods. Nestle India Limited is the market leader in Indian Noodle Market with its Maggi Brand of Noodles which was pioneer brand launched in 1983
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in the packaged food market of India. It took the challenge and established Maggi in Indian market considered to be conservative and typical about food consumption.The size of the packaged food market in India is estimated at $10 billion and is expected to reach $20 billion by 2014, while the share of packaged food in the food and grocery market is expected to touch 5 per cent by the same time.

MISSION
Nestl strives to be a leader in nutrition, health and wellness, with the belief that good food is central to health and wellness. At the Nestl Research Center, nutrition research meets food innovation to bring consumers of all ages and stages of life, foods and beverages that contribute to health and wellness, while offering remarkable taste and convenience STP ANALYSIS

VISION
At Nestl, we believe that research can help us make better food so that people live a better life. Good Food is the primary source of Good Health throughout life. We strive to bring consumers foods that are safe, of high quality and provide optimal nutrition to meet physiological needs. In addition to Nutrition, Health and Wellness, Nestl products bring consumers the vital ingredients of taste and pleasure. As consumers continue to make choices regarding foods and beverages they consume, Nestl helps provide selections for all individual taste and lifestyle preferences. Research is a key part of our heritage at Nestl and an essential element of our future. We know there is still much to discover about health, wellness and the role of food in our lives, and we continue to search for answers to bring consumers Good Food for Good Life

MAR ETIN MIX

K G

The marketing mix is a bundle of variables which are offered to the customer. These include the product or service itself (its advantages); its availability (the place where and when it is available, delivered or
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distributed); its image (the way it is promoted) and, of course, the price which should be charged.

Product - this means the product's (or service's) quality, the functions, the features and benefits of its design plus packaging, guarantees and level of after-sales service. Choices can be made about any of these aspects. Price -includes recommended prices to end-user customers, distributor's trade prices, cash discounts, bulk discounts, terms of credit.

Place- means where and when the customer buys and consumes the product or service. Place is sometimes referred to as the marketing channels, physical distribution, logistics or location. Promotion- means the promotions mix or the communications mix. This mix includes advertising, sales promotions, publicity, direct mail, exhibitions, display, packaging, selling and even word-ofmouth.

PRODUCT

What is a product? A product is everything that can be offered in the market to satisfy a need or a want of the consumers. - Philip kotler A product is a set of tangible and intangible attributes that lead to customers satisfaction. The product that is taken is MAGGI-THE NESTLE PRODUCT Maggi offers different flavors. a) Masala b) Curry c) Tomato d) Chicken e) Dal Atta Noodles (With Sambhar Flavor) f) Veg Atta Noodles g) Rice Noodles (With Lemon Masala, Chilly Chow, Shahi Pulav Flavors) h) Cuppa Mania (With Masala yo, Chilli Chow Yo Flavors) i) Maggi Damdar

Product Level:

1)

Core Product: It is primary level of a product. It constitutes the primary service or benefit that a customer is looking for. In case of maggi when customer is hunger then he can buy noodles and cook in 2mins and satisfy his hunger. Basic Product: The Marketer must then think of the basic or actual product by keeping in mind the core benefit. In case of maggi the customer are attracted towards the product because of attractive packing and it has created brand image in market and it satisfy all the attributes of core product. Expected Product: The expected product must consist of a set of attributes and conditions, which buyers normally expect when they purchase a product.
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2)

3)

In case of maggi customers expect various flavors and varieties.


4)

Augmented Product: The Augmented product is the result of voluntary improvements brought about by the manufacturer in order to enhance the valve of the product. It finds out through market research how the value of its product can be enhanced and adding extra features and functions to it. In case of maggi is improving according to the customers taste and also take the feedback of the customer through online. By which they can get improvement in the product. Potential Product:

5)

The Potential product is tomorrows product, carrying all the improvement and finesse that is possible under the given technological, economic and competitive conditions. In case of maggi is available in the market with necessary improvement with more health conscious. Which is already prepared should be stored and not freshly made every time we eat.

Product Classification:
a)

Nondurable Goods:

Nondurable goods are tangible goods normally consumed in one or a few uses, such as soft drinks and soap. Because these goods are
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purchased frequently, the appropriate strategy is to make them available in many locations, charge only a small markup, and advertise heavily to induce trial and build preference.
b)

Durable Goods: Durable goods are tangible goods that normally survive many uses: refrigerators, machine tools, and clothing. Durable products normally require more personal selling and service, command a higher margin, and require more seller guarantees. In case of maggi it is nondurable product because it can be consumed for one or few uses, and it has small markup price and heavy advertising is done.

In case of maggi is a Non-Durable goods which is tangible as we can see the product and its only use once. It is purchase frequently its also a convenience goods it is divided into 2 parts impulse and staples as it is purchased on regular basis and no planning is required to buy the product.
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Product Differentiation:
a)

Form: Product can be differentiated on the basis of form i.e. with respect to size, shape, or other physical features. In case of maggi it is rectangular in shape which is to be broken into pieces while cooking.
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b)

Features: Products can be differentiated with varying features that supplement the products basic function. Introducing a unique and a valued product feature, helps to face the competition in the market. In case of maggi it is available in different flavors which offer tough competition in market. Performance Quality: It is level at which the products primary characteristics operate. A firm must design an appropriate performance quality by keeping in mind its target market as well as its competitors. The company must continuously improve its product performance quality, which can bring in more profits and market share. In case of maggi the firm has made regular changes as an when necessary and has designed the product keeping in mind of customer. Durability: It is a measure of products life. Typically durability can be defined as the amount of use one gets from a product before it physically deteriorates. In developing countries like India, people (even belonging to upper income group) do prefer products having longer durability. Therefore, product designers should consider the durability factor. Style:
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c)

d)

e)

Normally, teenagers and young adults prefer stylish brands. People do not mind paying a premium for stylish appearance of the products. In case of maggi it is coloured in yellow which is very attractive and customer prefer to buy. Packaging: We define packaging as all the activities of designing and producing the container for a product. Packages might include up to three levels of materials. Well-designed packages can build brand equity and drive sales. The package is the buyers first encounter with the product and is capable of turning the buyer on or off. Packaging also affects consumers later product experience. In case of maggi, the manufacturer tells the consumer how to prepare maggi within 2 minutes and it has started new packing strategy by Me and Meri Maggi Contest. Labeling: The Label may be a simple tag attached to the product or an elaborately designed graphic that is part of the package. It might carry only the brand name, or a great deal of information. In case of maggi the label is very attractive with attractive graphic which attract the eyes of costumers.

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PRICING

What is pricing? Pricing is an important element of marketing. Price is the exchange value, it is a significant variable. In many cases it is the main factors affecting consumers choice. Its significance is future emphasis as its the only element that generates revenues and other produce cost. Price is not just a numbers on tag of the product, price now-a-days its not only for the product but also for services offered. Eg) price charged for- rent, fees for schools & colleges etc. this is service. Eg) price charged for products- biscuits, clothes, toothpaste etc

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MAGGI- this product is available in the market in different prices depending on their packing.
Flavours Small(50gms) Single (100gms) Double (200gms) Four in one (400gms) Rs-38 Rs-38 Rs-38 -

Masala Curry Tomato Veg Atta noodles

Rs-5 -

Rs- 10 Rs-10 Rs-10

Rs-20 Rs-20 Rs-20 -

Rs-14 (93gms )

Veg dal Atta noodles

Rs 14 (93gms )

Rs-50 (360gms )

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Rice mania

Rs-15 (83gms )

Rs-58 (332gms) -

cuppa mania

Rs-27 (70gms )

Consumer behavior of the consumers:

It is assumed that the customers are price takers and accept the product at the given price. It is founded that the customers analysis the price of the product before the go for purchases the product. The analysis can be in the form of formal or informal communication. If the consumers dont find the price of the product worth the quality or quantity they might reject the product. Majority of the consumers are price sensitive especially in a country like India. They want all the products at reasonable price. MAGGIthe customers go to buy this product in large quantity and at regularly intervals because it is available at a reasonable

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price and the customer is happy with the quality and quantity of the product it is also healthy.

Steps involved in pricing

1. Setting the pricing objective: The first step in pricing is to set the pricing objectives. The pricing objective must be in the line with the objective of the firm. While fixing the price the markets can set the price on the following parameters. To ensure survival of the business To earn a fair return on investment
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To increase the market share To achieve a desired level of sales In case of maggi when the product entered into the market the prices were fixed to increase the market share in a short period of time, it also aimed at achieving the sales target.
1.

Evaluate the factors affecting pricing:


The marketers should identify and evaluate the factors affecting pricing. There are several factors that affect the price. Cost of the product Demand for the product Nature of the competitors Nature of the consumers Nature of the product

In case of maggi the cost of the product is low due to which there is a huge demand for the product and the consumers get attracted towards the product .Maggi has many competitors, the firm has to understand their polices and then quote a price for their product. The nature of the product is to provide healthy food to the consumers.
1.

Decide pricing strategy: The markets must decide about the pricing strategy. For some product it should adopt penetration pricing or and for some skimming pricing.
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In case of maggi the firm has adopted penetration pricing.

2. Set the initial price: After selecting the strategy the next step is to initialize the price. The price of the product depends on the nature and strategy that the firm has adopted. And then the price is price is fixed. In case of maggi the price is low as it has adopted penetration pricing. And the price is fixed on the strategy which is adopted.
3.

Make price adjustments : The marketers have to make several adjustments before the final price of the consumers. The adjustment may be quoting a lower price at the initial stage of the product to attract consumers. The markets also has to make adjustments while tragetting different group of consumers.
In case of maggi the marketers has quoted lower price in its initial stage and as it grew with new introduction of product the price of the new product are high as compared to the exciting products.

4.

Review:

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The marketer must monitor the price of the product, considrering the firms objective, the price charged buy the competitors, the profit of the firm, sales, demand for the product and so on. In case of maggi the distributor has to keep the firm updated with the sales, demand and the profit of the firm.

Factor influencing pricing:


Internal factors Objective of the firm Cost Image of the product Product External factors Competitors price Demand Consumers needs Channels intermediates

Internal factors
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a)

Objective of the firm: The marketer must consider the objective of the firm while fixing the price of the product as the price of the product is directly related to the price of the product. As in the case of fixing the price of the product that is maggiif the objective of the firm that is nestle is to gain more profits then it would charge more price and if the firm wants to create a goodwill in the market then it would sell its product at a lower price with less profit motive. Nestle is selling its product maggi at a lower price as it wants to create a brand image in the mind of the target audience. And it has got successes as MAGGI 2MINTUES NODDLES.

b)

Cost: A firm while fixing the price should consider the cost involved in producing the product. It should take into consideration the fix cost as well as the variable cost. The firm should aim at covering the variable cost at the initial level. Maggi sells it product in the home town as well as out of the home town the firm recover its fixed cost from the home town (Mumbai) and the variable cost from out of the home town (out of Mumbai)

c)

Product:
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The product plays an important role in fixing the pricing if the product is of superior quantity then the firm may adopt premium price strategy in this strategy the price is high for high quality and in case of high value low price is charged for higher quality. Maggi is the product which adopts high value strategy it provides high quality at a lower price.
d)

Image of the firm: The firm enjoys a good image in the market even if it charges higher or same price than its competitors. This is because it has created an image of its own in the mind of the consumers and holds a good reputation in the market In case of maggi it charges same price as its competitors but the consumers prefer maggi rather than other brands of noodles. This is because maggi has created its image in the mind of the consumers.

External factors:
a)

Competitors : The marketer has to consider the competitors prices before fixing their own price. If there is high competition then the marketer has to lower the price and vice-versa. It should also take into consideration the competitors brand as well its substations while fixing the price. Normally the price of
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the product should be in the range of its competitors or less than it. In case of maggi the price of the product is lower to its competitors.

Maggi Rs-10 (100gms)


b)

Foodles Rs-15(80gms)

Demand: Price of the product depends on the demand. An increase in the demand may lead to increase in the price. Demand may also increase in the economic condition in the market, problems with the suppliers and so on. Increase in the demand may not always lead to increase in the price. In case of maggi the demand for noodles is increasing day by day so the firm has to provide its product properly to the distrusters without increasing the price.

c) Consumers: The marketer should consider various consumers factors while fixing the price. The consumer factors that must be taken into consideration which includes sensitiveness of buyers, purchasing power, buying behavior and so on. In case of maggi- the product is very famous in India and Indian people are very price sensitive as the consumer belong
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to the upper middle class so the product which is available at reasonable price are demanded by the consumers. d) Channel intermediaries: While fixing the price the marketers must consider the number of channels intermediaries and their expectations. The longer the chain of the intermediaries there is an increase in the price In case of maggi the product has short intermediaries so the price of the product (maggi) is low as compared to its competitors

How are competitors?


In the market when a firm belong to the same or similar industry which offers same or similar products. The presences of the competitors attempts to reduce the price of goods as the competitors attempts to gain a large market share. Competitors also require companies to become more efficient in order to reduce the cost. Maggi has many compitiors namely Indo-Nissans Top ramen

Glaxo Smith Kline's Horlicks Foodles


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HULs Knorr soupy Noodles Chings Noodles Wai Wai ITCs Sun feast yippee noodle

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Pricing strategies

1)

Penetration pricing strategy: The pricing strategy of low pricing at the early stage of the product. The main objective is to capture the whole market share in the earlier stage of the product

Types of penetration pricing strategy:

a)

rapid penetration pricing strategy: Where low price are charged and the product is promoted with heavy promotional expenditure to promote the product.
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b)

slow penetration pricing strategy: Where low prices are charged and there is limited promotional expenditure to promote the product

1)

Skimming pricing strategy: A high premium is charged when the product is launched in the market. The main objective of the firm is to gain more n more profits in the early stage of the product.

Types of skimming pricing strategy:

a)

rapid skimming pricing strategy: Where low price are charged and the product is promoted with heavy promotional expenditure to promote the product. slow skimming pricing strategy:
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b)

Where low prices are charged and there is limited promotional expenditure to promote the product. In case of maggi the product is penetration pricing strategys its main objective was to capture the full market as its initial stage, the price of the product is low and promotion expenditure is high. Affordable pricing Affordable pricing means the price of the product which is reasonable and the consumer can buy the product. The price of the product should be reasonable enough so that common people will have money to buy it. In case of maggi the price is affordable common consumers can buy and demand for the product Price of small packet of maggi is Rs-5this price is affordable to the people.

Differential pricing
Difffrential pricing means charging different prices for the same product to different consumers.
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In case of maggi it is available in two types


dry maggi wet maggi dry maggi is the packet which is available in different packing. And this is given at the same price to all the consumers Wet maggi is also known as cooked maggi this is provided at different prices to various consumers. Rs-5 packet maggi is cooked and given in RS- 10, Rs-12 and so on

PLACE

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Distribution is the process of delivering the product to the consumer. In other words, we are dealing here with the third P of marketing i.e. Place. A way of getting the product to the consumer and/or how easily accessible it is to consumers. Marketing Channel System: Push Strategy: It uses the manufacturers sales force, trade promotions, money or other means to induce intermediaries to carry, promote and sell the product to the end users. Push strategy is appropriate where there is low brand loyalty in a category, brand choice is made in the store, the product is an impulse item and product benefits are well understood.
Pull Strategy:

The manufacturer uses advertising, promotion and other forms of communication to persuade consumers to demand the product from intermediaries, thus inducing the intermediaries to order it. Pull strategy is appropriate when there is high brand loyalty and high involvement in the category, when consumers are able to perceive differences between brands, and when they choose the brand before they go to the store.

Types Of Marketing Channels:

Intensive distribution:

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The manufacturer places the goods or services in as many outlets as possible. This strategy is generally used for items which consumer seeks to buy frequently or in a variety of locations. Example: Maggi have intensive distribution as it is available at every place. Selective distribution: Selective distribution is a distribution in which only some outlets are chosen to distribute the product. Consumer durable like automobiles, music system, TV and exclusive clothing and fashion goods come under this category. Exclusive distribution: Exclusive distribution is a distribution in which products are sold through very few and selected outlets. In this case, the distribution right is given to a single middleman in a given territory.

Distribution Levels:

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Distribution Channels:

RURAL DISTRIBUTION: Hub and spoke model:

A physical distribution system developed and modeled on industry standards to provide cargo management for a theater. It is based on a "hub" moving cargo to and between several "spokes". It is designed to increase transportation efficiencies and in-transit visibility and reduce order ship time. Maggi has established its hubs in the cities like Mumbai, Pune, Kolhapur etc. These hubs distribute the maggi products to the spokes i.e retailers or wholesalers. Hubs and spokes play important role in the distribution of product. The demand by consumer that are placed by retailer to wholesaler then it is processes to regional distributor. Urban distribution: In urban areas it is found in every small outlet as well as in supermarkets. Maggi is distributed in such a way that the product is available to the consumers.
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Consumer Behavior
Consumer behavior is the study of when, why, how and where people do or do not buy a product. It refers to the buying behavior of the final consumer, individuals and households, who buy goods and services for personal consumption. According to Engel, Blackwell and Mansard: Consumer Behavior as actions and decision processes of people who purchase goods and services for personal consumption. According to Louden and Bitta: Consumer Behavior is the decision process and physical activity individuals engage in when evaluation, acquiring, using or disposing of goods and services. Factors influencing changing consumer behavior:
A.

Social Influence: To the greater extent, social influence affect a consumers buying decision making. The social influences include culture, subculture, social class, reference groups and family. Culture: It is the most important factor that affects a persons needs and behaviour. Culture refers to the set of basic values and behaviour that are learned by a member of a society from family and other important institutions. Subculture:
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Each culture consists of smaller subcultures that provide more specific identification and socialization for their members. Subcultures include nationalities, religions, racial groups and geographic regions. Marketers can design their products to satisfy the needs of specific subculture. Social class: Buying behavior is affected by the influence of social class to which one belongs. A social class is relatively a homogeneous group, whose members share similar values, beliefs and behavior. A social class reflects income level, occupation, education and even area of residence. Social class differs in terms of dress, eating habits, buying patterns, speech patterns, and other characteristics. Reference groups: A reference group can be defined as a group of people who influence a persons attitudes, values and behavior. Consumer behavior is influenced by small groups to which he/she belongs or aspires to belong. These groups include family, religion group, friends circle, neighbors, and so on. Each group develops its own set of beliefs attitudes that serve as guidelines for its members behavior. A. Marketing influence:

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Each element of the market mix- product, pricing, promotion and placement has the potential to affect the buying process at various stages. Product: The uniqueness of the product, the physical appearance as well as packaging and labeling of the product can influence buying decision of a consumer. Pricing: Pricing strategy does affect buying behaviour of consumers. If consumers are price sensitive in respect of a certain product, then the marketer must not fix a higher price. However, incase of status items like luxury products, the marketer may charge a higher price. Promotion: The various elements of promotion such as advertising, publicity, public relations, personal selling, and sales promotion affect buying behaviour of consumers. Successful marketers select the most appropriate promotion techniques after considering the type of the product, competition, and the nature of consumers. Placement: The channels of distribution and physical distribution affects buying behaviour of consumers. Successful marketers select channels of distribution with characteristics that match their products and the types of consumers they seek to satisfy.

A. Personal influence:
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The personal factors of a person may also affect the buying decisions. The personal factors include age, occupation, education, income, lifestyle, personality, gender, family size, position in the fam,ily, position in the society, and so on. For instance, the higher the income of a person, more would be nbe the purchases of certain items like clothing, footwear, etc. Also, higher the education, more would be the purchases in respect of personal hygiene products, health care items, and so on. A young adult would spend more of his income on personality related items as compared to a middle-aged adult

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PROMOTION

Promotional Tools of Communication

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Advertising: Advertising is communication with current and potential customers and consumers, done through paid mass media. The channels of communication can be TV, radio, Internet, billboards, etc. Maggi advertise its product in most of the channel but majority of the time they have target kids channel like hungama, pogo, cartoon network.

Maggi does


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Print ads: was mothers and kids Maggi does not focus heavily on print media during its launch since its initial target audience was mothers and kids.

Some advertisements in the print media were used to highlight the convenience factor of Maggi. Maggi has recently come out with advertisements in some weekly magazines for its new atta noodles and rice noodles variants. Maggis expenditure on print media is much lower compared to other media.

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Internet ads:

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Some advertisements in the print media were used to highlight the convenience factor of Maggi. Some advertisements in the print media were used to highlight the convenience factor

Public Relationship ( PR ):
Public relation is communication toward public, but is turned more to reputation and image of the company, than to it's products. The PR activity can be a press conference, TV interview with company representative, press article about donation of the company to charity or about latest environmental project. Getting a health certification Sponsoring school sports event Organizing maggi painting competition for school children til std 7th Moving van

RESULT OF PR ACTIVITY: Getting closer to regular customer. Boosted the sales.

Sales promotion: Sales Promotion represents a set of different promotional activities that has the goal of animating customers for purchasing. This can
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be value offer ( discount ), quantity offer ( 2+1 ), prize drawings, merchandising, direct contact by animators in retail outlet, etc. Maggi was distributed free in schools and offices to promote trial Return gifts on empty packs Maggi fun book and stickers with funky animal facts. The approach to promotional mix can be different. The push strategy is transferring the supply pressure downstream through sales channels. The pull strategy is approaching the consumer irectly. The Promotional Mix than create the consumer's demand is then creating request for product through supply channel upstream. Usually these two approaches are interlacing. In the early stage of product life the pull strategy is more dominant. Later, when the market is saturated with own and competitor's products the push strategy is predominant.

Push & Pull Strategies

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Above a pull strategy (left) push strategy (right). Communication by the manufacturer is not only directed towards consumers to create demand. A push strategy is where the manufacturer concentrates some of their marketing effort on promoting their product to retailers to convince them to stock the product. A combination of promotional mix strategies are used at this stage aimed at the retailer including personal selling, and direct mail. The product is pushed onto the retailer, hence the name. A pull strategy is based around the manufacturer promoting their product amongst the target market to create demand. Consumers pull the product through the distribution channel forcing the wholesaler and
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retailer to stock it, hence the name pull strategy. Organization tends to use both push and pull strategies to create demand from retailers and consumers. In case of maggi noodles they have a pull strategy as in customers are already attracted towards it

Objectives of promotion mix


Awareness: If the target market is unaware of the product or services, the marketer should undertake communication-mix to create awareness. The awareness of the product or services is required in respect of the brand name, brand availability, etc. the awareness of the product can be created through various techniques such as advertising, publicity, personal selling, and direct marketing and so on. Information: Marketers must inform the target audience about the product. Providing information is closely related to creating awareness of the product. Potential customers much know about a product, such as product features, uses, etc. product information is very much required, especially when the product is introduced in the market, or when product modification is undertaken.
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Attitudes: Promotion is required to build or reinforce attitudes in the minds of target audience. The marketer expects the target audience to envelop a favorable attitude towards his brand. Positive attitude towards the brand helps to increase its sales. Reminder: If target customers already have a positive attitude towards a firms product or service, then a reminder objective is necessary, because the satisfied customers can be targets for competitors appeals. Wellestablished brands need to remind the customers about their presence in the market. Brand loyalty: Marketers undertake promotion in order to develop brand loyalty. Brand loyalty result in repeat purchases, and also favorable recommendations to others by existing customers. Sales promotion, effective personal selling helps to develop brand loyalty. Brand image: Marketers need to develop the brand image in the minds of target audience. There are several factors that can help to develop brand image such as the nature and character of the personality use to endorse the brand, the content of the advertising message, the nature and type of packaging, the type of programmers sponsored, and so on.

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Educating the customers: Promotion may be undertaken to educate the customer. For e.g. Public awareness campaigns also educate the public regarding the negative effects.

Expansion of markets: Promotion may intend to expand the markets like from local level to regional level, from regional level to national level and from national level to international level.

Factors influencing promotional strategy:


Types of product: Type of product is a major factor that affects the promotional mix: If it is an industrial product, personal selling and sales promotion techniques are more preferred as compared to advertising If it is a consumer product, marketers may prefer to spend more on advertising and sales promotion as compared to personal selling

Type of customers:

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The choice of techniques of promotion mix depends upon the type of customers, their buying pattern, their purchasing powered. for eg,in markets with fewer and larger buyers(as in the case of industrial users), marketers would prefer personal selling and sales promotion. Again, if buyers are price sensitive, then they can be induced through sales promotion techniques. Competitors strategy: The marketer may consider the strategy adopted by major competitors. For e.g., if major competitors use advertising as a major technique of promotion, then the marketer may also adopt the same. However, one should not blindly follow the competitors. Firms position in the market: Promotion mix is greatly influenced by the firms position in the market. For eg, market leaders may use more of advertising than sales promotion. In contrast, small firms may benefit more from sales promotion rather than advertising, as they cannot spend heavily on advertisement

Pattern of distribution: If the marketer adopts a long chain of distribution, then it would be advisable to go for advertising and consumer promotion to
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persuade and induce the consumers to demand products from dealers. However if there is a short chain of distribution, and dealer are playing an important role in pushing the product, then dealer promotion is vital element of promotion mix Visibility of the firm: Some firms are more visible to the public because of their name and goodwill in industry. Highly visible firms may have to spend a good deal of money to maintain a good public image through advertising, publicity and PR.

The effect of using different medias and promotional tools


The Economic Times, a prominent newspaper in India, in 2003. Maggi is the leader in the Instant Noodles category because it is constantly improving its understanding of the consumer to give them excellent and tasty products that provide nutrition, health, and wellness.

First ad
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"Mummy, I'm hungry..." How often have you said this! Each time with delightfully mouth-watering results. Because mummy knows you love to eat Maggi Noodles, at any time of the day. Be it after school, or after play. Maggi 2 minute noodles come in four delicious flavours - Chicken, Masala, Capsika, and Sweet Sour. Try a different one each time.

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Maggi times are fun times...always! Maggi 2-minute noodles. Fast to cook! Good to eat!

Maggi Noodles was first launched in India in Delhi in January 1983 by Food Specialties Ltd (associated with Nestle). It was an instant hit thanks to ever overworked mothers and ever hungry kids. Maggi became a phenomenon. The following year, only people in the world eating more Maggi than Indians, were the Malaysians. Some tried to imitate Maggi's Masala for success and its instant formula, some like a brand called Favvy instant noodles, but none succeeded and now no one even remembers them. (But yes, a decade later, on board Indian trains, cup-a-noodles range)
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Maggi Noodles completed 25 years in India last year, and the response to the 'Me and Meri Maggi' campaign generated a whole new line of thought, and in turn, three new flavors. Shivani Hegde, general manager-Foods, Nestle India, explained, "Consumer feedback plays a critical role in our marketing strategy and we continuously keep listening to the consumer and getting into their lives, to identify the 'Moment of truth'. We had earlier launched an innovative advertising campaign Me and Meri Maggi to celebrate the emotional relationship Maggi has with consumers where we allowed the consumer to own the brand and talk about their unique experiences with Maggi. The inspiration for the new 'Me and Meri Maggi' range came from the consumers, and from their overwhelming response to this campaign."

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STP

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SEGMENTATIONIt is grouping or segregation of people on the basis of their needs into different segments.market is segregated in to sub-markets. Segmenting is the process of dividing the market into segments based on customer characteristics and needs. The main activity segmenting consists of four sub activities. These are: 1. determining who the actual and potential customers are 2. identifying segments 3. analyzing the intensity of competitors in the market 4. selecting the attractive customer segments.

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TARGETING
A marketer can rarely satisfy everyone in a market. Not everyone likes the same cereal, hotel room, restaurant, automobile, college, or movie. Therefore, marketers start by dividing the market into segments. They identify and profile distinct grops of buyers who might prefer or require varying product and service mixes by examining demographic, psychographic, and behavioral differences among buyers. After the most attractive segments are selected, a company should not directly start targeting all these segments -- other important factors come
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into play in defining a target market. Four sub activities form the basis for deciding on which segments will actually be targeted. The four sub activities within targeting are: 1. defining the abilities of the company and resources needed to enter a market 2. analyzing competitors on their resources and skills 3. considering the companys abilities compared to the competitors' abilities 4. deciding on the actual target markets.

POSITIONING
When the list of target markets is made, a company might want to start on deciding on a good marketing mix directly. But an important step before developing the marketing mix is deciding on how to create an identity or image of the product in the mind of the customer. Every segment is different from the others, so different customers with different ideas of what they expect from the product. In the process of positioning the company: 1. identifies the differential advantages in each segment 2. decides on a different positioning concept for each of these segments. SEGMENTATION OF MAGGI
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Age-Nestle magi segmented market on the basis of age that is kids,ladies,and new emerging segment is of old people(grandpa & grandma) Lifestyle-Here maggi segments market on the basis of lifestyle like working parents,college goers,bachlers etc. Eating habits of urban families-it is on the basis of pattern in which family eats and cooks in urban area like less time in cooking,fast and conveniently made food at the same time should satisfy hunger.

TARGETING

Kids & Youth - Maggi targeted at the kids, because they know these segments want such kind of product from which they get relief , whenever they feel hungry.

Office goers-As time doesnt permit them to cook for longer


hours.

Working women-Maggi understood that it is very difficult for working women to juggle everything so it becomes convenient for them to provide food quickly without much difficulty in making. Singles-It was a perfect target as they dont know cooking nor have time for it.

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Health conscious people-Maggi also came up with vegetable Atta noodles and dal Atta noodles.

Old age people- Maggi recently came up with magi damdaar to target these consumers.

POSITIONING

Easy to cook , Good to eat Time saving 2 minute noodles


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Maggi became synonym of noodles Fast to cook and good to eat Taste bhi, health bhi.

Maggis strategy in 1980s- Nestle launched its noodles in the Indian market in the early 1980's. Nestle wanted to explore the potential for such an Instant food among the Indian market. Initially Nestle tried to position the Noodles in the platform of convenience targeting the working women. But it found that the sales are not picking up despite heavy promotion. Maggi has faced lot of hurdles in its journey in India. The basic problem the brand faced is the Indian Psyche. Indian Palate is not too adventurous in terms of trying new tastes. That may be the reason why we are still stuck with Idli and Sambhar.

In 1990sResearch then showed that Kids were the largest consumers of the brand. Realising this, Nestle repositioned the brand towards the kids using sales promotions and smart advertising. Realizing this, Nestle repositioned their brand using new promotional strategies and smart advertising. Marketing teams were sent out to schools to distribute free Maggi samples to take home. The kids would inevitably take their Maggi packets home and ask their mothers to prepare it for lunch or as a snack. The mothers would find that it took
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them only two minutes to make a proper hot meal for their children who would love it. They would refer it to their neighbors who would pass it on to distant bachelor cousins who lived alone and had to cook for themselves. Thus, the hugely successful viral campaign ensured that Maggi created a distinct affection in the hearts of its consumers unlike any other proprietary food of its time.

In 1997Nissin the inventor of instant noodles launched its flagship brand Top Ramen in the Indian market with Shah Rukh Khan endorsing the brand. It was then that Maggi took its first false step it changed its taste to align itself with that of Top Ramens. The results were disastrous. A generation which had grown up on Maggi could not accept the new taste and would rather give Top Ramen a try. Nestle was fast losing ground to Nissin. It took them two years to work out a new strategy accept the consumers verdict and get back to the basics. In 1999, Maggi relaunched itself with its original taste. It paid off handsomely and the faithfuls returned to their master. Top Ramen could no longer sustain the growth it built up in the two years.

COMPETITORS

Indo-Nissans Top ramen Glaxo Smithkliness Horlicks Foodles


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HULs Knorr soupy Noodles Chings Noodles Wai Wai ITCs Sunfeast yieppi noodles Big Bazaars Tasty Treat

Analysis

Maggi through these years was enjoying the market leadership and had maximum market share of 87% but in recent years many companies are coming up in this segment and they are aggressively fighting for their share Competitors of magi like ITC are coming up with many different propositions like noodles which can be stored for some time after cooking it.it need not be consumed immediately which is a point against magi which becomes very sticky if consumed after some time. . Also some companies have magi which is round in shape and not rectangle which needs to be break for consumption and lose the fun of eating long noodles.

SWOT ANALYSIS
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A tool used by organisations to help the firm establish its Strengths, Weaknesses, Opportunities and Threats (SWOT). A SWOT analysis is used as a framework to help the firm develop its overall corporate, marketing, or product strategies. Note: Strengths and Weaknesses are internal factors which are controllable by the organisation. Opportunities & threats are external factors which are uncontrollable by the organisation.

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Strengths
Established Family Brand Strong Global Corporate Brand ( NIL ) Specialization in food processing category marketing and distribution in Urban market Presence of other product segments of food category : Dairy Products,Chocolate, Infant foods Pioneer and Leader so 1st mover advantage in Noodles, Sauce, Ketchups and Soup market. Nestle symbolization of warm, family & shelter. Research and Development Division in India

Weakness
Generic Brand to Noodles in India Low rural market presence constraints Uniform Brand for all food category Brand Proliferation

Opportunities
Growing package and canned food market in India by 15% annually. High brand awareness of Indian consumer Other product category like Biscuits, Chips and Ready to Eat Market still unexplored. Opportunity to be substitute to other snacks category of food products.
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Threats
Competitors with long history in product category Internationally like, , Top Ramen in Noodle. Single product focused competitors like and Wai Wai Noodles. Less Entry Barriers in the Market segment for product category ITCs and HULs strong base in Indian Market. Substitute Product to Product Segment.

Product Life Cycle

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Introductory Stage Created an entirely new food category No competition High marketing and production costs Limited Distribution Promotion focuses on awareness and information Promoted with the tagline Fast to cook, Good to eat

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Growth Stage I
High rate of Acceptance Maggi become popular snack food product Increased number of sales Profits begin to rise

Maturity Stage I
Entry of competitor Top Ramen in 1990s Sales begin declining

Decline Stage

In 1990s, Sales declining Competition increased in noodles segment Tough competition by Top Ramen New product launched but rejected by consumer due to taste in 1997 Maggi launched new products under their brand e.g. soups, cooking aids etc. but were not so successful

Growth Stage II
Maggi reintroduced the old formulation of noodles in 1999 Demand for Convenience food was increasing in early 2000s Purchasing power of people increases Sales begin to rise
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Maturity Stage II
Entry of various noodles brand like HULs Knorr sopy noodles, Foodles, Big Bazaars Tasty Treat, Top Ramen and others Market share of Maggi slipped between Dec. 09 and July 10 Dec.09 90.7% July10 86.5% on an all India basis

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