Demand Analysis on maggi

Maggi-Unternehmungen AG

Type Aktiengesellschaft; subsidiary of Nestlé

Industry Food

Founded 1890

Founder(s) Julius Maggi

Headquarters Cham, Switzerland

Key people Alain Pedersen

Website maggi.ch

About Maggi noodles is a brand of instant noodles manufactured by Nestlé. The brand is popular in Australia, India, South Africa, Brazil, Nepal,New Zealand, Brunei, Malaysia, Singapore, Sri Lanka, Bangladesh, Pakistan, and the Philippines. In several countries, it is also known as "maggi mee" (mee is Indonesian/Malay/Hokkien for noodles). Maggi noodles are part of the Maggi family, a Nestlé brand of instant soups, stocks, and noodles.

Nestlé India Ltd (NIL) offered a variety of culinary products such as instant noodles, soups, sauces and ketchups, cooking aids (seasonings), etc., under the Maggi brand (Refer to Exhibit II for Maggi's product portfolio as of mid-2006). Of these, instant noodles had been NIL's main product category in the culinary segment since the launch of Maggi 2 Minute Noodles (Maggi noodles) in 1982. Over the years, Maggi noodles became a popular snack food product in India.

Wednesday, August 26, 2009

History of Maggi Noodles

History of Maggi Noodles

Maggi is a Nestle brand of instant noodles, soups stocks, bullion, sauces a and seasoning.

The original company came into existence in 1872 in Switzerland, when Julius Maggi took

over his father’s mill. At that time during industrial revolution in Switzerland created factory

jobs for women, who were therefore left with very little time to prepare meals.

Due to this growing problem Swiss Public Welfare Society asked Julius Maggi to create a

vegetable food product that would be quick to prepare and easy to digest.

It was the first to bring protein rich legume meal to the market, which was followed by ready

made soup based on legume meal in 1886.

In 1863, Julius Maggi developed a formula to add taste to meals, which later paved the way

for Maggi and other easy to make food products. Apart from two minute noodles Maggi also

offers a range of product.

However in India it was launched in 1980s by Nestle group of companies. Maggie had

merged with Nestle family in 1947.

Today, Maggi is particularly well known in India, New Zealand, Australia, Malaysia, Pakistan,

Nigeria, the Philippine and Singapore for its instant Maggi noodles. (Maggi mee).

History of Maggi Noodles

Brand: Maggi Current agency: Pubicis India 

‘Bus do minute’ is all it still takes to put a hot, steaming bowl of Maggi on the table – 25 years after the instant noodle brand from Nestle’s stable made its way into Indian kitchens. Maggi has managed to create a category for itself in the food and snacks market in the country, wonderfully fitting into the breakfast-lunch-dinner-in-between snacking slot.

When Nestle launched its instant noodles brand in the Indian market in the early 1980s, it wanted to explore the potential for such an instant food among the Indian market. As of now it enjoys around 50 per cent market share in this segment, which is valued at around Rs 250 crore. Along the way it has managed to hold off quite a few me-too entrants.

Brand Journey – A Testimony in Itself

For Emmanuel Upputuru, National Creative Director, Publicis India, the transformation of the brand in the last 25 years is a testimony in itself. He explained, “Recently I met someone in Singapore, and when we shared how big a brand Maggie Noodles is in India, the gentleman exclaimed, ‘Noodles in India!’ That, to me, was a testimony to the success of the brand Maggie Noodles in India.”

Initially, Nestle tried to position the noodles brand on the platform of convenience, targeting working women. But it found that sales were not picking up despite heavy promotion. Research then showed that kids were the largest consumers of the brand. Realising this, Nestle repositioned the brand towards kids using sales promotions and smart advertising.

However, the fact lies that even if the TG is kids, a survey would reveal that a considerable slice of Maggi noodles’ consumers are single men and women. The pricing and the variety in tastes are the added advantages.

In 2005, Nestle made a smart move. It knew that although kids love noodles, the parents were bothered about the health aspect of the noodles, which was made of maida (refined flour). Hence, Maggi launched Maggi Atta Noodles with the baseline ‘Taste bhi, health bhi’.

Law of demand Demand for a commodity increase when its price decreases and fall when its price rises ,other things remaining constant’

Factors affecting the demand Determinants of demand Price of the commodityIncome of the consumerPrice of related goodsTastes and preferencesAdvertisements

Quality and price

QTY 50g 100g 200g 400g 600g

PRICES 5rs 10rs 20rs 40rs 59rs

The price and the quality is affordable to every middle class, lower class and high class people .

ArticleMARKETING ARTICLES

Mar 14, 2011

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Is Maggi too have a competition?

Maggi is one of the largest & most lovely snack food brand among Indians which made a create presence in the mind of Indians into the categories of the Istant Noodles. Earlier maggi was considered into account as an evening snack but due to rapidly changing in the tasMaggi is one of the largest & most lovely snack food brand among Indians which made a create presence in the mind of Indians into the categories of the Istant Noodles. Earlier maggi was considered into account as an evening snack but due to rapidly changing in the taste and preference of consumer; Maggi has moved form being 7 P.M snack to being a part of breakfast, lunch, evening snack and dinner in life of average household. As per its positioning 2 minutes noodles it is easy to make by any one even for those who does not know one word about cooking.

Few months back, the only competition Maggi had with the Japan-based Nissin Group’s Top Ramen, and the Nepal based CG Foods’ Wai-Wai Noodles.

Wai-Wai was restricted itself to the eastern market of West Bengal and Sikkim till now, where it controlled 70 per cent of the market. Its strategy was to first build-up the distribution network, which it successfully did – the brand was available on the shelves of super stores, as much as in the local Kirana stores. It was then that they started building the brand.

Top Ramen, on the other hand, was aggressive in its marketing – it even roped in Shah Rukh Khan as the brand ambassador, but failed to get its distribution network in place. The brand had entered into a distribution tie-up with Marico, the owners of Saffola and Parachute.

However, the year 2010 saw a sudden spurt in this category

Wai-Wai is now working towards a national presence. Earlier the company had its manufacturing units in Assam and Sikkim, recently set up a new plant in Rudrapur, in Uttaranchal, and is also looking at acquiring a FMCG company in the South/ West. Top Ramen also has moved to set up its own distribution network, besides hiring a new agency Dentsu, to give it a fresh marketing push. The brand plans to launch itself with a new look and a new taste.

Two another major players of FMCG, GSK and ITC, decided to venture into the ‘Instant Noodle Market’to try their luck while Maggi is still to continue with innovate itself to add more products into its existing line, with the aim of this Maggi recently added two new flavor likes-: Thrillin Curry & Tricky Tomato Noodles. With the slogan of “Taste Bhi Health Bhi” it’s now available in 5 delicious flavor (Masala, Chicken, Tricky Tomato, Thrillin Curry and Romantic Capsica) GSK launched Foodles, while ITC launched Sunfeast Yippee. Unilever, too, tried to create some competition with Knorr Soupy Noodles which is tried to make its presence with being 7 P.M snack so that mummy and tummy of child both become happy.

 But other brands like GSK and ITC stated that we all very thankful to Nestle, which has done the great job in establishment of instant noodles in FMCG Market and marked a created presence into the Indian consumer’s mind.

GSK came into the Istant Noodles category with the name of Horlick’s Foodles. As Horlick has a strong positioning in the Tamil Nadu. That is why they endorsed the brand Horlicks for its new product as part of positioning strategy.

Hence, the new players still stand in a long queue. Maggi will soon come up with new innovation in the“Taste Bhi Health Bhi” segment.

Maggi products

Noodles:

Maggi vegetable multigrain noodlesMaggi 2 mins noodlesMaggi veg atta noodlesMaggi cuppa mania

Sauces:

Maggi sauces

Maggi pichkoo

Pasta:

Maggi pasta

Cooking aids :

Maggi magic cubesMaggi bhuna masala Maggi coconut milk powerMaggi pizza mazza

Adversiments

Tv adds

Flavours

Maggi Noodles are available in a large assortment of different flavours. They are:

Original Flavour

Chicken

Curry (a healthier alternative is also sold in supermarkets)

Kari Letup ("Explosive" Curry) in Malaysia

Laksa Lemak (discontinued)

Tom yam

Chicken & Corn

Beef

Oriental

Masala

Prawn

Dal Sambar (whole wheat noodles)

Dal Atta noodles

Asam Laksa

Cheese

Chatpata

Tomato

Stronger Chicken

Crispy Chicken

Vegetable Atta Noodles (whole wheat noodles)

Shahi Pulao (rice noodles)

Chilly Chow (rice noodles)

Lemon Masala (rice noodles)

Mi Goreng Pluz Asli

Capsica

Maggi noodles also produces instant noodles known as "Hot Bowl" noodles named "Cuppa

Mania" in India. New drinkable Maggi noodle soups are also available.

Logistics details

Market research

Market share

Objective:

To find out the market penetration ofMaggi noodlesTo understand the influences of maggi as a brand on consumers mind set.To understand the brand performance of maggi productsSources of brand equity of maggi like brand awareness,brand image ,brand association,brand recall. •Research methodology:•(i) Target Area: Andheri, Dadar, Parel•(ii) Shopkeeper Sample Selection: Mall,General•Store, Medical Store, Bakery, Paan-BidiShop•(iii) Customer Sample Selection: School

Kids,•House Wives, Office Goers•(iv) Shopkeeper Sample Size: 30

Stpd analysis.segmentation:based on lifestyle and habits of urban families.targeting;kids ,offices goers.positioning ;with statements such as 2 minute noodles and easy to cook god to eat .differentiation:taste,flaours,packaging

SWOT Analysis of Maggi as Brand

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 New Noodles Plant in Uttarnchal

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.

Threats

Competitors with long history in product category Internationally like, Heinz Sauce and ketchups of Heinz Indian, Top Ramen in Noodle and

Knorr Soups. Single product focused competitors like Heinz sauce and Wai Wai Noodles. Less Entry Barriers in the Market segment for product category ITC’s strong base in Indian Market. Substitute Product to Product Segment.

Comparison of Data sales Maggi top ramenper day sales

Suppy change

Conclusions.maggi has achieved a great position in market and this position is least affected by its competitors {top ramen ,wai wai,etc.}

Law of demand ‘lower the price higher the quantity demanded and vice versa’ works completely in case of maggi noodles

Maggi for last 25 years had manage to remain unbeaten in the market because it has always gives more preference to the taste of people

Maggi: From two minutes to 25 yearsBy Khushboo Tanna, afaqs!, Mumbai, April 23, 2009 

Section: News Category: Advertising

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On its 25th anniversary, Nestlé’s Maggi has launched a campaign, inviting consumers to share their Maggi Moments

From a midnight snack to a lonesome bachelor’s emergency meal, Nestlé’s Maggi has, over time, been a

part of nearly everyone’s life. The instant noodle snack brand -- which is also one of the instant packaged

food products that Indian consumers were exposed to -- is celebrating its 25th anniversary this year.

To make consumers part of the brand’s journey, its latest communication talks about various memories

people associate with Maggi. The ad has been conceptualised by Publicis India. “It gives you a feeling of

nostalgia, and works on the basic truth that everyone has at least one Maggi story to tell,” says Emmanuel

Upputuru, national creative director, Publicis India.

Hemant Mishra, president and chief operating officer, Publicis India, goes a step further and declares that

the ad is a co-creation of the brand and the consumer. Whenever there is mention of Maggi, a consumer will

immediately start talking about his favourite style to cook/consume it, he says, while sharing an incident that

happened with his own children. While they were on a family vacation to Leh, they came across Maggi that

was cooked in local spices, which became an instant hit with his children. The new campaign is “inspired” by

such truths, he explains.

Maggi is born: The product journey

Back in 1984, instant noodles were an entirely new category. Maggi was then available in four variants --

Masala, Chicken, Sweet and Sour and Capsicum. It is now available in Chicken, Masala, Tomato and Curry

variants.

In 2005, Nestlé introduced Maggi Atta instant noodles and then Maggi Rice Mania as well. Both of these,

apparently, couldn’t match the original Maggi. Other products from the Maggi stable include Maggi Cuppa

Mania, Maggi Sauces, Maggi Bhuna Masala, Maggi Healthy Soups and Maggi Magic Cubes.

Elements that have stayed constant in any Maggi film include the jingle -- ‘Maggi, Maggi, Maggi’ in a sing-

song voice, the family setting, and the ‘two minutes’ promise, which started off as a USP, but took a

backseat eventually.

Maggi has generally stayed away from taking the celebrity endorsement route. The only exception was

roping in actor, Preity Zinta for a brief period, to promote the Rs 5 Chotu Maggi and the Maggi family packs.

According to Mishra, all ads for the brand usually focus on the mother-child relationship; therefore, the brand

has deliberately stayed away from celebrity endorsements. “The mother and child are the celebrities for

Maggi,” he states.