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n ro uc on o aggNoodles

•It’s a Brand of instant Noodle made by Nestle India Ltdfounded by the Maggi family in Switzerland in the 19thcentury.

•Nestle launched Maggi for the first time in India in the year

1982 with topselling masala flavour and other chickennoodles .

•Nestle wanted to explore the potential for such an Instantfood among the Indian market.

•Currently Maggi has around 90% market share in thissegment.

•Over the years Maggi has launched several products under

its Brand Name.



•Maggi launched in india at a time when the instant noodlewas not that well known a category.

•It used the tagline Fast to cook and good to eat, not only topromote the product, but also to educate the ever growingaspirant consumer about the advantages of using it.

•Maggi in india is best known for its flagship product of instantnoodles with its various desi sub-segments such as thetraditional dal atta,veg atta and rice noodles along with theirvarious variants, curry,masala,tomato,chicken .



4 P’s Of Maggi

•Product•- Ready to cook meal•- Variants for different segments•Price•- Differentiated packaging

•- lower price point strategy•Place•- Target rural market•- Target hawkers/ roadside eating joints•- Kirana stores•Promotion

•- Prime time electronic media advertisements•- Awareness campaigns•Sponsor school quiz



Introduction Stage of MaggiNoodles

•Initially Nestle tried to position the Noodles in the platform of convenience targeting the working women.

•However, the sales of Maggi was not picking up despite of heavy media advertising.

• To overcome this NIL conducted a research & shifted itsfocus from working women and targeted children and theirmothers through its marketing.

•NIL's promotions positioned the noodles as a 'convenienceproduct', for mothers & as a 'fun' product for children keepingwith this positioning.

•Giving gifts on return of empty packets, etc.

•Effective Tagline Communication.



Growth stage

•10 yrs back it enjoyed around 50% market share in thissegment which was valued at around 250 crores.

•During the 1990s, the sales of Maggi noodles declined, dueto growing popularity of Top Ramen , another instant noodles

product.

•In order to improve sales , NIL changed the formulation of Maggi noodles in 1997.

•However, this proved to be a mistake, as consumers did notlike the taste of the new noodles.

•In March 1999, NIL reintroduced the old formulation of thenoodles, after which the sales revived.



• The PROFITS BEGIN TO RISE.

• The MAGGI BECOME THE NO. 1 BRAND IN INSTANT NOODLEMARKET.

•PRICE- prices were kept normal.

•PRODUCT- no any new changes.

•PROMOTION- promoted with tag line•“GOOD TO EAT FAST TO COOK”



Market Penetration Strategies

•Promotional Campaigns in school

•Advertising strategies :- focusing on kids

•New product innovation according to the need of consumers :- Vegetable atta noodles, dal atta noodles,cuppamania

•Availability in diiferent packages : 50gms, 100gms ,200 gms,

family packs (200gms)

•Conducting regular market research



Maturity stage•Declining sales growth

•Saturated markets•Extending product line

•Stylistic product changes

•Heavy promotions to dealers and consumers

•Prices and profits fall

•In 2003 Hindustan Lever Ltd was all set to take on Nestle'sbestselling Maggi 2-minute noodles by launching a newcategory of liquid snacks under its food brand, KnorrAnnapurna.

• The new product, called Knorr Annapurna Soupy Snax, was

priced aggressively at Rs 5 and had four variants: two chickenoptions and two vegetarian.

•Like Maggi, Soupy Snax will be an in-between-meals snackand will be targeted at all age groups.



Brand Line Extension

•Nestle’s Maggi noodles classic examples of line extension are:- “Vegetable Atta Noodles, Dal Sambar (whole wheatnoodles), Shahi Pulao (rice noodles), Curry noodles, CuppaMania.

•Gain more potential customers The opportunity to sell more to each customeroffer customer more varietyGreater marketing efficiencyGreater production efficiencyIncreased profits at the introduction and growth stages of product line extensionsLower promotional costs of product line extensionsExpand company shelf space presence in retail.



Brand Extension

•In order to obtain cost economies, companies leverage thestrength of the existing brand to launch new variants andproduct lines.

•Nestle’s Maggi is the classic example, which extended thebrand maggi to sauces, soup, seasonings and pickle.

• They want to cash the image of the mother brand to maketheir new product’s successful and acceptable in the market.

•Customers have a relationship and emotional feeling withbrand maggi.



Suggestive Promotional

•Focus on creating distinctive image, based on twin benefitsconscious and rural market.

•Conduct promotional campaigns at schools in small townswith population more than 10,000.

•Strengthen the distribution channel of the rural areas within100 KM of all the metros.

•Launch new advertisement campaign (T.V., Radio and printmedia commercials) with the brand ambassador.

•Conduct Market Research to find out the market penetrationof the product in the rural areas covered

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