Shree Chinai College of Commerce and Economics Andheri {E}, Mumbai-400069
P !"EC# EP! #
$A%A&'S(S !) MA *E#(%+ S# A#E+(ES !) %ES#&E MA++(,
S-.M(##E/ .'0 ona1 23 aichura #3'3.MS{Semes4er-5} Pro6ec4 +uide0 Prasi1a +ai17ad -ni5ersi48 of Mumbai 90:;-:4
/EC&A A#(!%
I, Ronak Raichura student of Bachelor in Business Management Studies Semester V {2013-1 !, here"# declare that II ha$e com%leted the %ro&ect on Anal8sis of Mar1e4ing S4ra4egies !f %es4le the "est of m# kno+ledge
'
() *he information su"mitted is true and original to
Cer4ifica4e
*his is to certif# that Mrs Ronak Raichura of Bachelor in Management Studies Semester V {2013-201 ! has successfull# com%leted the ,ro&ect on
$A%A&'S(S !) MA *E#(%+ S# A#E+(ES !) %ES#&E MA++(,
-nder the guidance of Prof3 Prasi1a +ai17ad ./ourse coordinator0 .,rinci%al0
.Internal 12aminer0
.12ternal 12aminer0
.Signature of the Student0 Ronak Raichura
AC*%!<&E/+EME%#
3ith immense %lease I Ronak Raichura is %resenting $45467SIS 89
M4R:1*I5; S*R4*1;I1S 89 51S*61 M4;;I( ,ro&ect Re%ort as a %art
of the curriculum of $Bachelors in Business Management Studies,3
S%ecial thanks to -ni$ersit# of Mum"ai for organi<ing the course of Management Studies
I e2%ress m# %rofound thanks to the ,rinci%al and /o-ordinator ,rof) =I54 74>5I:
I take this o%%ortunit# to e2%ress m# dee% gratitude to+ards m# %ro&ect guide ,rof) ,R4S=I:4 ;4I:34? for hel%ing me in com%letion of the %ro&ect) I +ish to thank all %eo%le +ho ga$e me unending su%%ort)
9urther I thank all m# class mates and all those +ho ha$e indirectl# guided and hel%ed me in %re%aration of this %ro&ect to its destination)
ona1
aichura
E=EC-#(>E S-MMA '
*he %ro&ect aims at understanding the Marketing strategies of 5estle Maggi) Research has demonstrated conclusi$el# that it is far more costl# to +in a ne+ customer than it is to maintain an e2isting one) 4nd there is no "etter +a# to retain a customer than to e2ceed his e2%ectations) 9or this %ur%ose it is essential to kno+ the le$el of customer satisfaction) *he focus of m# research +as the measurement of customer satisfaction %ro$ided "# 5estle Maggi) *here can "e no "etter o%%ortunit# to interact +ith the e2ternal as +ell as the internal customers of an organi<ation) 9inall# the results of the research $erif# the fact that kee%ing the customer satisfied is the "est strateg# to not onl# retains the e2isting customers "ut also to e2%and the "usiness to ne+ hori<ons) 9ast-mo$ing consumer goods .9M/;0 @ or consumer %ackaged goods ./,;0 @ are %roducts that are sold Auickl# and at relati$el# lo+ cost) 12am%les include non-dura"le goods such as soft drinks, toiletries, and grocer# items)*hough the a"solute %rofit made on 9M/; %roducts is relati$el# small, the# generall# sell in large Auantities, so the cumulati$e %rofit on such %roducts can "e su"stantial) *he term 9M/; refers to those retail goods that are generall# re%laced or full# used u% o$er a short %eriod of da#s, +eeks, or months, and +ithin one #ear) *his contrasts +ith dura"le goods or ma&or a%%liances such as kitchen a%%liances, +hich are generall# re%laced o$er a %eriod of se$eral #ears) 9M/; ha$e a short shelf life, either as a result of high consumer demand or "ecause the %roduct deteriorates ra%idl#) Some 9M/;s @ such as meat, fruits and $egeta"les, dair# %roducts and "aked goods @ are highl# %erisha"le) 8ther goods such as alcohol, toiletries, %re-%ackaged foods, soft drinks and cleaning %roducts ha$e high turno$er rates)
#A.&E !) C!%#E%#S
1) Introduction 2) /om%an# %rofile 3) Re$ie+ of literature ) 8"&ecti$e B sco%e of re%ort C) Methodolog# D) 6imitation E) 4nal#sis B inter%retation a) S*, 4nal#sis ") S38* 4nal#sis F) /onclusion B recommendation
4nne2ure • Guestionnaire • Bi"liogra%h#
C2AP#E
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(%# !/-C#(!% #! #2E P !"EC#
*he ,ro&ect entitled '45467SIS 89 M4R:1*I5; 45? ,R8M8*I8546 S*R4*1;I1S 89 M4;;I( deals +ith the stud# of the Maggi Brand that +as launched in India in the #ear 1HF3, "# 5estle India 6imited, +hich "ecame s#non#mous +ith noodles) Mainl#, this %ro&ect studies the Marketing and ,romotional strategies that are ado%ted "# 5estle India 6imited for Maggi o$er the #ears) 4nd also to kno+ a"out the market %osition of Maggi as a Brand, ho+ the# sur$i$ed in the %ast, +hat all strategies the# ado%ted to "ecome a +ell kno+n and +ell esta"lished "rand)
? !."EC#(>ES !) #2E P !"EC#0
? *o -nderstand the Marketing and ,romotional Strategies ado%ted "# 5estle Maggi) ? *o understand the "rand %erformance of Maggi %roduct) ? *o understand Brand Imager#, Brand Gualit# %ercei$ed "# customers, Brand /redi"ilit#, consideration, su%eriorit#) ? Brand e2tension of Maggi in terms of %roduct di$ersit#)
C!MPA%' P !)(&E
• (%# !/-C#(!% #! %ES#&E0
%es4l? S3A3 is among the largest consumer %ackaged goods com%anies in the +orld, founded and headAuartered in Ve$e#, S+it<erland) 5estlI originated in a 1H0C merger of the 4nglo-S+iss Milk /om%an#, +hich +as esta"lished in 1FDD "# "rothers ;eorge ,age and /harles ,age, and the 9arine 6actIe =enri 5estlI /om%an#, +hich +as founded in 1FDD "# =enri 5estlI, +hose name meant J6ittle 5estJ) *he com%an# gre+ significantl# during the 9irst 3orld 3ar and follo+ing the Second 3orld 3ar, e$entuall# e2%anding its offerings "e#ond its earl# condensed milk and infant formula %roducts) *oda#, the com%an# o%erates in FD countries around the +orld and em%lo#s nearl# 2F3,000 %eo%le)
? 2(S#! ' !) %ES#&E0
*he com%an# dates to 1FDE, +hen t+o se%arate S+iss enter%rises +ere founded that +ould later form the core of 5estlI) In the succeeding decades the t+o com%eting enter%rises aggressi$el# e2%anded their "usinesses throughout 1uro%e and the -nited States) In 4ugust of 1FDE /harles 4) and ;eorge ,age, t+o 4merican "rothers from 6ee /ount#, I6, esta"lished the 4nglo-S+iss /ondensed Milk /om%an# in /ham) *heir first British o%eration +as o%ened at /hi%%enham, 3iltshire in 1FE3) In Se%tem"er 1FDE, in Ve$e#, =enri 5estlI de$elo%ed a milk-"ased "a"# food and soon "egan marketing it) =enri 5estlI retired in 1FEC, "ut the com%an#, under ne+ o+nershi%, retained his name as 9arine 6actIe =enri 5estlI)
=enri 5estlI) In 1FEE 4nglo-S+iss added milk-"ased "a"# foods to its %roducts, and in the follo+ing #ear the 5estlI com%an# added condensed milk, so that the firms "ecame direct and fierce ri$als) In 1H0C the com%anies merged to "ecome the 5estlI and 4nglo-S+iss /ondensed Milk /om%an#, retaining that name until 1H E, +hen the name 5estlI 4limentana S4 +as taken as a result of the acAuisition of 9a"riAue de ,roduits Maggi S4 .founded 1FF 0 and its holding com%an#, 4limentana S4 of :em%ttal, S+it<erland) Maggi +as a ma&or manufacturer of sou% mi2es and related foodstuffs) *he com%an#Ks current name +as ado%ted in 1HEE) B# the earl# 1H00s, the com%an# +as o%erating factories in the -nited
States, -nited :ingdom, ;erman# and S%ain) 3orld 3ar I created ne+ demand for dair# %roducts in the form of go$ernment contractsL "# the end of the +ar, 5estlIMs %roduction had more than dou"led) 4fter the +ar, go$ernment contracts dried u% and consumers s+itched "ack to fresh milk) =o+e$er, 5estlIMs management res%onded Auickl#, streamlining o%erations and reducing de"t) *he 1H20s sa+ 5estlIMs first e2%ansion into ne+ %roducts, +ith chocolate the com%an#Ms second most im%ortant acti$it#)
5estlIMs logo used until 1HE0s) 5estlI felt the effects of 3orld 3ar II immediatel#) ,rofits dro%%ed from -SN20 million in 1H3F to -SND million in 1H3H) 9actories +ere esta"lished in de$elo%ing countries, %articularl# 6atin 4merica) Ironicall#, the +ar hel%ed +ith the introduction of the com%an#Ms ne+est %roduct, 5escafI, +hich +as a sta%le drink of the -S militar#) 5estlIMs %roduction and sales rose in the +artime econom#) *he end of 3orld 3ar II +as the "eginning of a d#namic %hase for 5estlI) ;ro+th accelerated and com%anies +ere acAuired) In 1H E came the merger +ith Maggi seasonings and sou%s) /rosse B Black+ell follo+ed in 1HC0, as did 9indus .1HD30, 6i""#Ms .1HE10 and StoufferMs .1HE30) ?i$ersification came +ith a shareholding in 6M8rIal in 1HE ) In 1HEE, 5estlI made its second $enture outside the food industr# "# acAuiring 4lcon 6a"oratories Inc) In 1HF , 5estlIMs im%ro$ed "ottom line allo+ed the com%an# to launch a ne+ round of acAuisitions, nota"l# 4merican food giant /arnation and the British confectioner# com%an# Ro+ntree Mackintosh in 1HFF, +hich "rought the 3ill# 3onka Brand to 5estlI)
*he first half of the 1HH0s %ro$ed to "e fa$ora"le for 5estlIO trade "arriers crum"led and +orld markets de$elo%ed into more or less integrated trading areas) Since 1HHD there ha$e "een acAuisitions including San ,ellegrino .1HHE0, S%illers ,etfoods .1HHF0, and Ralston ,urina .20020) *here +ere t+o ma&or acAuisitions in 5orth 4merica, "oth in 2002O in >une, 5estlI merged its -)S) ice cream "usiness into ?re#erMs, and in 4ugust a -SN2)D "illion acAuisition +as announced of /hef 4merica, the creator of =ot ,ockets) In the same time frame, 5estlI came close to %urchasing the iconic 4merican com%an# =ershe#Ms, though the deal fell through) 4nother recent %urchase includes the >enn# /raig +eight loss %rogram for -S N D00 million) In ?ecem"er 200C 5estlI "ought the ;reek com%an# ?elta Ice /ream for P2 0 million) In >anuar# 200D it took full o+nershi% of ?re#erMs, thus "ecoming the +orldMs "iggest ice cream maker +ith a 1E)CQ market share) In 5o$em"er 200D, 5estlI %urchased the Medical 5utrition di$ision of 5o$artis ,harmaceutical for N2)CB, also acAuiring in 200E the milk fla$oring %roduct kno+n as 8$altine) In 4%ril 200E 5estlI "ought "a"# food manufacturer ;er"er for NC)C "illion) In ?ecem"er 200E 5estlI entered in a strategic %artnershi% +ith a Belgian chocolate maker ,ierre Marcolini) 5estlI agreed to sell its controlling stake in 4lcon to 5o$artis on >anuar# 2010) *he sale forms %art of a "roader -S N3H)3 "illion offer "# 5o$artis to full# acAuire the +orldKs largest e#e-care com%an#)
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5estlI has D,000 "rands, +ith a +ide range of %roducts across a num"er of markets including coffee .5escafI0, "ottled +ater, other "e$erages .including 4ero .chocolate0 B Skinny Cow0, chocolate, ice cream, infant foods, %erformance and healthcare nutrition, seasonings, fro<en and refrigerated foods, confectioner# and %et food)
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In 200H, consolidated sales +ere /=9 10E)D "illion and net %rofit +as /=9 10) 3 "illion) Research and de$elo%ment in$estment +as /=9 2)02 "illion)
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Sales "# acti$it# "reakdo+nO 2EQ from drinks, 2DQ from dair# and food
%roducts, 1FQ from read#-%re%ared dishes and read#-cooked dishes, 12Q from chocolate, 11Q from %et %roducts, DQ from %harmaceutical %roducts and 2Q from "a"# milks)
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Sales "# geogra%hic area "reakdo+nO 32Q from 1uro%e, 31Q from 4mericas
.2DQ from -S0, 1DQ from 4sia, 21Q from rest of the +orld)
? "!(%# >E%#- ES0
5estlI holds 2D) Q of the shares of 6K8real, the +orldMs largest com%an# in cosmetics and "eaut#) *he Laboratories Inneov is a &oint $enture in nutritional cosmetics "et+een 5estlI and 6K8real, and Galderma a &oint $enture in dermatolog# +ith 6K8real) 8thers include /ereal ,artners 3orld+ide +ith ;eneral Mills, Be$erage ,artners 3orld+ide +ith /oca-/ola, and ?air# ,artners 4mericas +ith 9onterra)
(%/-S# ' P !)(&E
9ast Mo$ing /onsumer ;oods .9M/;0 goods are %o%ularl# named as consumer %ackaged goods) Items in this categor# include all consuma"les .other than groceriesR%ulses0 %eo%le "u# at regular inter$als) *he most common in the list are toilet soa%s, detergents, sham%oos, tooth%aste, sha$ing %roducts, shoe %olish, %ackaged foodstuff, and household accessories and e2tends to certain electronic goods) *hese items are meant for dail# of freAuent consum%tion and ha$e a high return) *he Indian 9M/; sector +ith a market si<e of -SN1 )F "illion is the fourth largest sector in the econom#) *he 9M/; market is set to dou"le from -S? 1 )E "illion in 200F-0H to -S? 30 "illion in 2012) 9M/; sector +ill +itness more than D0 %er cent gro+th in rural and semi-ur"an India "# 2010) Indian consumer goods market is e2%ected to reach N 00 "illion "# 2010)=air care, household care, male grooming, female h#giene, and the chocolates and confectioner# categories are estimated to "e the fastest gro+ing segments) 4t %resent, ur"an India accounts for DDQ of total 9M/; consum%tion, +ith rural India accounting for the remaining 3 Q) =o+e$er, rural India accounts for more than 0Q consum%tion in ma&or 9M/; categories such as %ersonal care, fa"ric care, and hot "e$erages) In ur"an areas, home and %ersonal care categor#, including skin care, household care and feminine h#giene, +ill kee% gro+ing at relati$el# attracti$e rates) 3ithin the foods segment, it is estimated that %rocessed foods, "aker#, and dair# are long-term gro+th categories in "oth rural and ur"an areas)*he gro+ing incline of rural and semi-ur"an folks for 9M/; %roducts +ill "e mainl# res%onsi"le for the gro+th in this sector, as manufacturers +ill ha$e to dee%en their concentration for higher sales $olumes) Ma&or ,la#ers in this sector include =industan -nile$er 6td), I*/ .Indian *o"acco /om%an#0, 5estlI India, ;/MM9 .4M-60, ?a"ur India, 4sian ,aints .India0, /ad"ur#
India, Britannia Industries, ,rocter B ;am"le =#giene and =ealth /are, Marico Industries, 5irma,/oca-/ola, ,e%si and others)4s %er the anal#sis "# 4SS8/=4M, /om%anies =industan -nile$er 6td , ?a"ur India originates half of their sales from rural India) 3hile /olgate ,almoli$e India and Marico constitutes nearl# 3EQ res%ecti$el#, ho+e$er 5estle India 6td and ;S: /onsumer dri$e 2C %er cent of sales from rural India) 4 ra%id ur"ani<ation, increase in demands, %resence of large num"er of #oung %o%ulation, a large num"er of o%%ortunities is a$aila"le in the 9M/; sector) *he 9inance Minister has %ro%osed to introduce an integrated ;oods and Ser$ice *a2 "# 4%ril 2010)*his is an e2ce%tionall# good mo$e "ecause the gro+th of consum%tion, %roduction, and em%lo#ment is directl# %ro%ortionate to reduction in indirect ta2es +hich constitute no less than 3CQ of the total cost of consumer %roducts - the highest in 4sia)) *he "ottom line is that Indian market is changing ra%idl# and is sho+ing un%recedented consumer "usiness o%%ortunit#)
MA"!
C!MPE#(#! S !) %ES#&E MA++(
Maggi instant noodles, foods ma&or 5estleMs flagshi% "rand that has dominated the Indian instant noodles market for nearl# three decades, is losing market share on a monthl# "asis to ne+er entrants such as ;la2oSmith:lineMs .;S:0 =orlicks 9oodles, =industan -nile$erMs .=-60 :norr Sou%# noodles, Big Ba<aarMs *ast# *reat, *o% Ramen and se$eral other smaller %la#ers, according to data "# market research firm 5ielsen)
*he data sho+s that MaggiMs share of instant noodles, on an all-India "asis, across ur"an markets, has sli%%ed consistentl# "et+een ?ecem"er M0H to >ul# M10) 3hile Maggi instant noodles .minus $ermicelli0 had a H0)EQ share in ?ecem"er M0H, the share dro%%ed to FD)CQ in >ul# M10 on an all-India "asis) 4 regional s%lit of the data sho+s that MaggiMs instant noodlesM $alue market share has fallen across the east, south, north and +est <ones for the same %eriod) 4nal#sts sa# +ith ne+ com%etition, MaggiMs market share is certain to get im%acted , "ut add that 5estle has the %otential to e2%and the Rs 1,300-crore instant noodles categor# @ +hich itself is gro+ing at a ra%id 1CQ annuall#) 4 detailed email sent to 5estle on *hursda# elicited no res%onse) 4%art from =-6 and ;S: +hich ha$e %ositioned their noodles as Mhealth#M snacking o%tions targeting kids and mothers, others like Indo-5issinMs *o% Ramen, /a%ital 9oodsM /hingMs Secret and /; 9oodsMs 3ai-3ai , though around for long, are ste%%ing u% marketing efforts to take ad$antage of categor# gro+th) Besides, %ri$ate "rands like Big Ba<aarMs *ast# *reat and 4dit#a Birla RetailMs 9easters are notching u% share) Mano& Menon, 9M/; anal#st at "rokerage firm
tak Securities, +rote in a re%ort earlier this monthO JMaggi faces %roduct su"stitution risk and "rands like :norr and
9oodles could %otentiall# im%act its incremental gro+th) 5estle faces a challenging com%etiti$e en$ironment in culinar#)J ;S:, +hich entered the categor# in ?ecem"er last #ear, has taken a+a# share from Maggi mainl# in the South and 1ast riding on the eAuit# of =orlicks and its +ellentrenched distri"ution in the regions) ;S:Ms e2ecuti$e V,, marketing, Shu"ha&it Sen, saidO J/onsumers +ere looking for a choice in instant noodlesL com"ined +ith that, the eAuit# of =orlicks is leading to a lot of trails) *he initial res%onse to 9oodles is much higher than our e2%ectations)J 8n the other hand, =-6, +hich rolled out :norr Sou%# noodles in the South this 9e"ruar#, had to %ost%one the "randMs national launch due to ca%acit# constraints "ecause of hea$# consumer offtake) 4n =-6 s%okesman saidO J3e are $er# %leased +ith the %erformance of :norr Sou%# noodles)J ,ri$ate "rands are +hetting a%%etites of consumers too) 4ccording to ?e$endra /ha+la, "usiness head, %ri$ate "rands, 9uture grou%O J*he categor# "oundar# is set to "e re-dra+n) 9rom a snack food targeted at children, instant noodles categor# has e$ol$ed as a mainsta# meal e$en for gro+n u%s)J Mr /ha+la said *ast# *reat +as the second "iggest instant noodles "rand in its Big Ba<aar stores after Maggi) *he "rand %ackaging +as re$am%ed last #ear and 9uture %lans to roll out additional $ariants in a monthMs time taking the num"er of $ariants to nine from the e2isting three)
(%# !/-C#(!%
2(S#! ' !) MA++( @ (%/(A0
5estlI India 6td) .5I60, the Indian su"sidiar# of the glo"al 9M/; ma&or, 5estlI S4, introduced the Maggi "rand in India in 1HF2, +ith its launch of Maggi 2 Minute 5oodles, an instant noodles %roduct) 3ith the launch of Maggi noodles, 5I6 created an entirel# ne+ food categor# - instant noodles - in the Indian %ackaged food market) Because of its first-mo$er ad$antage, 5I6 successfull# managed to retain its leadershi% in the instant noodles categor# e$en until the earl# 2000s) 5I6 offered a $ariet# of culinar# %roducts such as instant noodles, sou%s, sauces and ketchu%s, cooking aids .seasonings0, etc), under the Maggi "rand .Refer to 12hi"it II for MaggiMs %roduct %ortfolio as of mid-200D0) 8f these, instant noodles had "een 5I6Ms main %roduct categor# in the culinar# segment since the launch of Maggi 2 Minute 5oodles .Maggi noodles0 in 1HF2) 8$er the #ears, Maggi noodles "ecame a %o%ular snack food %roduct in India) ?uring the 1HH0s, the sales of Maggi noodles declined, and this +as attri"uted %artl# to the gro+ing %o%ularit# of *o% Ramen , another instant noodles %roduct) In order to im%ro$e sales and attract more consumers, 5I6 changed the formulation of Maggi noodles in 1HHE) =o+e$er, this %ro$ed to "e a mistake, as consumers did not like the taste of the ne+ noodles) In March 1HHH, 5I6 reintroduced the old formulation of the noodles, after +hich the sales re$i$ed) 8$er the #ears, 5I6 also introduced se$eral other %roducts like sou%s and cooking aids under the Maggi "rand) =o+e$er, these %roducts +ere not as successful as the instant noodles)In the earl# 2000s, Maggi +as the leader in the "randed instant noodles segment, and the com%an# faced little serious com%etition in this segment) In the earl# 2000s, 5I6 started
introducing ne+ Mhealth#M %roducts in accordance +ith the 5estlI ;rou%Ms glo"al strateg# to transform itself into a health and +ellness com%an#) In March 1HHH, 5I6 reintroduced the old formulation of the noodles, after +hich the sales re$i$ed) 8$er the #ears, 5I6 also introduced se$eral other %roducts like sou%s and cooking aids under the Maggi "rand) =o+e$er, these %roducts +ere not as successful as the instant noodles) In the earl# 2000s, Maggi +as the leader in the "randed instant noodles segment, and the com%an# faced little serious com%etition in this segment) In >ul# 2001, Maggi re%laced 5escafI .5I6Ms coffee %roducts "rand0 as the com%an#Ms core "rand) 5escafI had "een 5I6Ms core "rand since 1HHF) /ommenting on the shift, /arlo ?onati .?onati0, chairman and managing director, 5I6, said, J*he focused a%%roach on 5escafI, +hich +as the com%an#Ms flagshi% "rand o$er the last fe+ #ears, has #ielded rich di$idends and +e %lan to re%licate the same in case of Maggi as +ell)J In the earl# 2000s, the 5estlI ;rou% had "een taking measures to transform itself into a Mhealth and +ellnessM com%an#) *he com%an# had also set u% ne+ research and de$elo%ment facilities +ith a $ie+ to im%ro$ing the attri"utes of the e2isting 5estlI %roducts to make them healthier, and to de$elo% ne+ health and +ellness %roducts) Since the earl# 2000s, the 5estlI ;rou% had "een introducing Mhealth and +ellness %roducts all o$er the +orld) In India, 5I6 introduced ne+ MhealthierM +eaning and milk %roducts in 200 )
In March 200C, the Maggi "rand too took to the health route +ith the launch of Vegeta"le 4tta 5oodles) 5I6 made use of the grou%Ms e2tensi$e research and de$elo%ment facilities in de$elo%ing this ne+ Mhealth#M %roduct)
MA++( @ (%/(A0
5estle India 6imited is the market leader in Indian 5oodle Market +ith itKs Maggi Brand of 5oodles +hich +as %ioneer "rand launched in 1HF3 in the %ackaged food market of India) It took the challenge and esta"lished Maggi in Indian market considered to "e conser$ati$e and t#%ical a"out food consum%tion) It a%%ro%riate reali<ation of target segment, effecti$e %ositioning and effecti$e %romotion and sales made Maggi to 5oodles in India as Sero2 it to %hotoco%ier) 5I6 had introduced sauces, ketchu%s and sou%s under Maggi "rand to rea% "enefit of "rand %o%ularit# and image and contri"ute to financial gains "# 1HH0)Maggi also "ecame successful in sauces, ketchu%s and sou%s Market in India) *hough 5I6 tried to e2tend to other read# to eat %roducts like %ickles, cooking aids and %aste, It +as unsuccessful so dum%ed those %roducts) Maggi Brand of %roducts sustained recession in 2000 and 2001 in India "# introducing econom# %ackets)
*o fulfill no$elt# needs of customers and re$itali<e Maggi 5oodles Brand 5I6 made different attem%ts "# introducing ne+ formulation to ne+ taste "ut customers resisted change and Maggi had to reintroduce Maggi 5oodles in same taste) Maggi 5oodle had
till 200C fi$e %roduct line on noodles +ith four $ariant in Maggi 2 Minutes 5oodle) In 200D in com%liance +ith 5I6 target to "e 'health and 3ellness /om%an#( Maggi re%ositioned it as health and taste food %roducts) 5I6 has also introduced +ith taste and %roduct line in Sauces and Sou% Market under Maggi to catch ne+ segment, re$itali<e "rand, com%ete +ith other %roducers and fulfill e2%ectation of customers) In 200C Maggi "rand +orth +as 3)E "illion from 1)E "illion market +orth in 1)E "illion in 2003) Maggi 5oodle is Market leader +ith around F0Q market share in 5oodlesR,asta and Maggi Sauce is market leader +ith almost 3EQ of market share in 200C in 1)F "illion market of India) :norr has taken o$er Maggi in Sou% market recentl#) In 200C Maggi +as the highest s%ender in the ,romotion and Sales in the Indian Market in the 5oodles /ategor#) Maggi is com%eting +ith =ein< Sauces and :etchu%, :noor Sou%s, :issin Sauces and :etchu%, *o% Ramen, Sunfeast ,asta 3ai 3ai and 2 ,M in corres%onding categories of %roducts and $ariants
MA++( #!/A'0
*he #ear 2003 sa+ India leading in +orld+ide Maggi sales) *he "rand has gro+n to an estimated $alue of Rs 1D0-1E0 crore and contri"utes at least F @ HQ to 5estle IndiaKs to% line) 4ll the same, some 9M/; anal#sts feel that the "rand has not done much to e2%and the noodles categor#) 1$en after 20 #ears of its launch, the si<e of the instant noodles market is #et Auite small at Rs 200 crore) But #es, the %arent com%an#, 5estle India 6imited has certainl# encouraged the "rand to enter into other culinar# %roducts) /arlo ?onati told a leading ne+s%a%er that he +ants to sell t+o and a half times of +hat he is selling toda#, in the ne2t 10 #ears)
8f course, "eing a first-mo$er - or e$en a market dominator - counts for nothing if marketers let their guard do+n) Maggi noodles, +hich "uilt itself on the taste-andcon$enience %latform through the F0s and earl# H0s, started facing the heat from Indo 5issinKs *o% Ramen "rand around 1HHC) *he latter "egan %ushing for+ard aggressi$el# on a com"ination of taste $ariants, smart audience segmentation and Shahrukh :hanKs "rand endorsement) 5estle %rom%tl# re-&igged its offering +ith a ne+ taste - +hich didnKt go do+n +ell +ith the consumer) In 1HHH, Maggi +as relaunched +ith its original taste, and sustained efforts sa+ the "rand reclaiming lost ground) Since then, the "rand has "een inno$ating constantl# to kee% share) 'Maggi ada%ted to local tastes and +ithstood com%etition o$er the #ears and has continuousl# sensitised itself to the e$ol$ing Indian consumer,( sa#s Martial Rolland, chairman and managing director, 5estle India)
MA *E#(%+ M(=
• P !/-C#S !) MA++(0
? %!!/&ES0
• MA++( 9 @ M(%-#E %!!/&ES0
MA++( 9-Minu4e %oodles is one of the largest and most lo$ed food "rands that defines Instant 5oodles in India)
/ontinuing to s%read &o# as it has done for the last 2C #ears, #our fa$orite M4;;I 5oodles is as tast# as e$er and e$en %ro$ides essential nutrients for all stage of #our life) 3ith the goodness of ,rotein and /alcium, M4;;I 5oodles is a$aila"le in #oma4o and Curr83 delecta"le fla$ors @ Masala, Chic1en,
MA++( 9- M(%-#E %!!/&ES
• MA++( >E+E#A.&E A##A %!!/&ES0
4n offering that e2em%lifies T*aste Bhi =ealth BhiK, M4;;I Vegeta"le 4tta 5oodles is tast# "ecause it is loaded +ith e$er#oneKs fa$ourite M4;;I
TMasalaK and health# "ecause it no+ has more real $egeta"les and is %acked +ith the %o+er of fi"er)
MA++( >E+E#A.&E A##A %!!/&ES
• MA++( C-PPA MA%(A0
1ach offering of M4;;I 5oodles has "een de$elo%ed kee%ing in mind the Indian %alate and +hat #ou like) Since in toda#Ks fast-%aced "us# life, multitasking is a realit#, #ou need something that fits +ith #our rushed lifest#le @ a %roduct +hich is tast# and health#, is con$enient to %re%are and eat and also satiates #our hunger ) M4;;I /u%%a Mania is a com"ination of all the a"o$eU In an eas# to carr# on-the-go /u% format, M4;;I /u%%a Mania comes in t+o mouth +atering $ariants @ Masala 7oU 4nd /hill# /ho+ 7oU ,acked +ith real $egeta"les and the goodness of /alcium, 6us4 add garam AaaniB to the 5oodles and $oilaU 4 cu%ful of delicious M4;;I /u%%a Mania is read# for #ou to carr8 on 6aaniC
MA++( C-PPA MA%(A
? S!-PS0
• MA++( 2EA' S!-PS0
M4;;I +as the %ioneer of Instant Sou%s in India)
*he ne+ M4;;I =ealth# Sou%s ha$e "een carefull# %re%ared through the Research and ?e$elo%ment efforts of 5estlI ;rou% and are e$en more
delicious, Auick to %re%are, con$enient and health#) #as4e .hi, 2eal4h .hiC3 M4;;I =ealth# Sou%s contain real $egeta"les, are lo+ fat, lo+ cholesterol and free from s#nthetic colours and added MS
*hese su%erior health# sou%s are no+ a$aila"le in an enhanced range of 12 delicious $ariantsO
?
=ealth# St#le Rich *omato Mi2ed Vegeta"le /ream# /hicken Masala 5oodles
?
/hinese St#le =ot B Sour Vegeta"le S+eet /orn Vegeta"le S+eet /orn /hicken 8riental *hai 5oodles
?
/hef St#le /ream of Mushroom
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*ang# *omato Vegeta"le S+eet n Sour *omato 5oodles ,alak /orn
• SA%"EE%( MA++( 2EA' C-P0
*raditional reci%es for good health, made +ith ingredients time-tested for their goodness, like 4mla, S%inach, ?al and tomato) 4$aila"le in an eas# to use cu%-&ust add hot +ater and treat #ourself to a cu% foll of good life)
MA++( S!-PS
? SA-CES0
• MA++( SA-CES0
M4;;I Sauces ha$e "een an integral %art of the Indian consumersM household for decades no+) *o cater to the di$erse Indian %alate, M4;;I has a host of $ariants likeO *he Auintessential Rich *omato :etchu% and Rich *omato Sauce) *he uniAue =ot B S+eet *omato /hilli Sauce and 8riental /hilli ;arlic sauce) *he Indian st#le *omato /hat%at Sauce
6i%smacking tastes and $i"rant %ackaging make M4;;I Sauces true to its slogan - (4Ds differen4C
M4;;I S4-/1S
• MA++( P(C2*!!0
,ichkoo is a small do# %ack +hich makes M4;;I *omato ketchu% afforda"le to a host of ne+ consumers) 4nd no+, M4;;I makes the delight JBiggerM "# introducing a Bada ,ichkoo) 4 large *omato :etchu% do# %ack +hich ensures that the fun goes on and on) ItMs endearing name, %ackaging and great taste e$oke a resounding reaction) J5e+ M4;;I ,ichkoo - (4Ds differen4CJ
MA++( P(C2*!!
? PAS#A0 • MA++( PAEE#A0
*o further delight the consumer, M4;;I no+ launches another range of %roducts for tast# and health# eating @ 5-*RI-6I/I8-S ,4VV*4) *his Auick cooking %asta can "e con$enientl# %re%ared in &ust F minu4es, at
an# time of the da# that #ou +ant a tast# and health# light meal) M4;;I 5-*RI-6I/I8-S ,4VV*4 is made from 100Q Su&i, and is a source of ,rotein and 9i"re) It has "eing launched in t+o delicious fla$ours GMasala PenneH and GCheese MacaroniH3
MA++( PAEE#A
? C!!*(%+ A(/S0 • MA++( MA+(C C-.ES0
M4;;I Magic /u"es enhance the taste of #our e$er#da# dish, making it a s%ecial for the entire famil#) 4$aila"le in t+o $ariants @ Vegetarian Masala B /hicken @ M4;;I Magic /u"es are an ideal seasoning for a $ariet# of dishes such as Veg Bir#ani, /hicken Bir#ani, /hicken /urr# etc) so eas# to useU 4nd itKs
•
MA++( .2-%A MASA&A0
M4;;I is re$olutioni<ing the Indian kitchen +ith its latest offering @ M4;;I Bhuna Masala) It is an# motherKs all# for con$enientl# cooking great tasting, +holesome food for the famil# e$er#da#) Based on intensi$e research and in-de%th understanding of Indian food ha"its and cooking %ractices, M4;;I Bhuna Masala allo+s the house+ife to %re%are a large $ariet# of tast# dishes +ithout the hassle of cho%%ing and fr#ing) *he dishes retain that Ts%ecial touchK of the house+ife as she adds her o+n s%icesW)) Standing strong on its %romise of '*aste Bhi, =ealth Bhi(, M4;;I Bhuna Masala comes +ith Ino added Areser5a4i5esI, Icon4ains onl8 : 4bsAB of oilI and I4as4es 6us4 li1e homemade3I ;i$es #ou a %erfect dish in three sim%le ste%sO
• • •
8%en the %ack B %our contents in the %an 4dd $egeta"lesR%aneerRchickenRra&ma etc) 4dd s%ices and cook
M4;;I :itchen Secrets Bhuna Masala comes in t+o $ariantsO.huna Masala for +ra58 /ishes- a read#- mi2 of 8nion, *omato, ;inger and ;arlic fried in refined oil) .-se it to make tast# dishes like Vaikedaar /hicken, Ra&ma,lha%uri Mutton, 4loo ,otol etc)0
.huna Masala for >ege4ables and /al- a read#- mi2 of 8nion and *omato, fried in refined oil) .-se it to make tast# dishes like ,alak corn, ?al *adka, Bhindi Masala, -rlai Roast etc)0
•
MA++( C!C!%-# M(&* P !/-C#0 3ith M4;;I /oconut Milk ,o+der #ou can make rich coconut milk Auickl# and con$enientl# "# sim%l# adding +arm +ater) It is manufactured from the "est Sri 6ankan coconuts) 1as# to use and ideal for curries, rice %re%arations, cakes, cookies and "lender drinks) M4;;I /oconut Milk ,o+der gi$es #ou the taste of real coconuts and has no added %reser$ati$es)
•
MA++( P(EEA MAEEA0 5o+ #ou do not need to order %i<<as from outside and +ait for 30 minutes) 3ith M4;;I ,i<<a Ma<<a #ou can %re%are delicious %i<<as +ithin minutes) 7ou can also ha$e the ma<<a of the %i<<a on other items like naans, footlongs and of course the most easil# a$aila"le of them all @ "read slices) 4$aila"le in a 300 gm &ar, each "ottle is good for C %i<<a "ases)
•
MA++( MASA&A @ AE @ MA++(0 *he first e$er fortified taste enhancer that can "e used across different cuisines in India) It is not a sim%le masala, "ut is uniAue in that it efficientl# enhances the taste inherent in the food ingredients alread# %resent) It is s%ecificall# fortified +ith Iron, Vitamin 4 B Iodine that are kno+n to "e +ides%read deficiencies in India) 1$er#da# food no+ "ecomes delicious B healthier in 2 sim%le ste%sO
• •
/ook ?ish as #ou normall# do 4dd 1 sachet 2-3 minutes "efore taking off the flame and stir +ell)
C!!*(%+ A(/S
• P (CE !) MA++(0
•
/onsidering the %rice %oints in the market for Maggi, it should continue to %osition itself in the 'snack( categor# itself, since fe+ +ould "e +illing to acce%t it as a meal)
•
*he com%an# is taking no chances and is e2tending its distri"ution reach to smaller to+ns and cities) Maggi ha%%ens to "e 5estlIKs most +idel# distri"uted "rand in the countr#) *hrough inde%endent channels, it reaches those $illages +here the com%an# has no %resence, according to =egde) *his is also the time that MaggiKs $alue-for-mone# %ack %riced at Rs C is e2%ected to come hand#) .*he regular %ack comes for Rs 10)0
•
4fforda"le "# all income grou%s)
• P&ACEJ /(S# (.-#(!%KL
•
*he distri"ution net+ork is +ell s%read)
•
1asil# a$aila"le in all retail stores)
•
?istri"ution channel @ ,R8?-/1R - ?IS*RIB-*8R /85S-M1R
R1*4I61R @
E=AMP&E !) MA++( P&ACE J /(S# (.-#(!%K
• P !M!#(!% !) MA++(0
• • •
*he# %romote their %roduct $er# effecti$el# through tele$ision) *he# ha$e a%%lied the strateg# of "rand e2tension) *he# also s%onsor $arious cooker# sho+s to %romote alternate usage of %roducts)
• • • •
*he# also use strateg# of free %roduct sam%les to %romote it) /ele"rit# endorsements) 1g) >a$ed >afferi ,R8M8*I85 6ess %romoted as com%ared to maggi) 5o %articular cele"rit# endorsement)
•
*he utter confusion regarding the long-term strateg# for :issan "rand +as $isi"le through the e2%eriments that +ere conducted on this "rand "# =ll)
•
But +ith a "rand +hich had a tremendous eAuit# during the late nineties and earl# 2000, =-6 had +eird %lans) 8ne of the ma&or casualties of MS BangaMs ,o+er "rand strateg# +as :issan) ?uring the earl# 2000, the "rand :issan +as re"randed as :issan 4nna%urna) :issan 4nna%urna +as marketing not &ams and sAuashes "# 4tta, salt and other sta%le foods) 6ater 4nna%urna and :issan +as s%lited into t+o se%arate "rands , one concentrating on sta%le foods and other on %rocessed foods) *his migration strateg# %ro$ed to "e $er# costl# for "oth :issan and 4nna%urna "rand) :issan +as s#non#mous +ith >ams and SAuashes during its initial #ears) :issan :etchu% +as a market leader in ketchu% segment "ut these e2%eriments and m#o%ic strategies %ushed the "rand "ehind the focused and aggressi$e Maggi)
•
So all through the %eriod 2001-200C, :issan +as in a stick# +icket) But no+ according to re%orts, the "rand mandarins of =-6 is no+ clear a"out :issan as a "rand for %rocessed food like >ams , ketchu%s and like, *hat change is $isi"le in the recent cam%aign of :issan +hich takes a uniAue $ie+ of :etchu%) *aking the tagline J 4ao "ana#e %akode "ehtarJ translated to J Making ,akode taste "etterJ)
•
In these series of ads, the "rand %la#s a second fiddle to the main snack) *he "rand takes the %ositioning of a J;reat 4ccom%animent J
Maggi has faced lot of hurdles in its &ourne# in India) *he "asic %ro"lem the "rand faced is the Indian ,s#che) Indian ,alate is not too ad$enturous in terms of tr#ing ne+ tastes) *hat ma# "e the reason +h# +e are still stuck +ith ?al) So a ne+ %roduct +ith a ne+ taste that too from a different culture +ill ha$e difficult# in a%%ealing to Indian market) Initiall# 5estle tried to %osition the 5oodles in the %latform of con$enience targeting the +orking +omen) But it found that the sales are not %icking u% des%ite hea$#
%romotion )Research then sho+ed that :ids +ere the largest consumers of the "rand) Realising this, 5estle re%ositioned the "rand to+ards the kids using sales %romotions and smart ad$ertising)5o+ Indians are the largest eaters of Maggi 5oodles in the +orld) Maggi 5oodles is a marketing success stor#)
?uring 1HHE Maggi changed its formulation) It +as during that time that Indo 5issin - a >a%anese com%an# launched its 5oodles "rand J*o% RamenJ +ith lot of %romotion and +ith SR: endorsing the "rand) *o%Ramen ga$e Maggi a run for its mone#) *he change in taste of Maggi +as a mistake) *he consumers re&ected the ne+ taste of Maggi) 4nd in 1HHH Maggi relaunched 5oodles +ith the original taste) 5estle +as read# to acce%t the consumers $erdict and it %aid off handsomel#) *o% Ramen could not sustain the gro+th it had for long)
MaggiMs cam%aigns +ere re$ol$ed around its Jcon$enience to make and good to eat J Aualities) Read# in J 2 minutes J +as a %ro%osition that +as +ell recei$ed "# the market) In 200C 5estle made a $er# smart mo$e) It kne+ that although kids lo$e noodles, the %arents +ere "othered a"out the health as%ect of 5oodles +hich +as made of Maida) =ence Maggi launched Maggi 4tta 5oodles +ith the "aseline J taste "hi health "hiJ )Re%orts suggest that after 10 months of the launch , the %roduct has "een +ell recei$ed "# Indian consumers) Maggi noodles is an e2am%le of a "rand that kno+s the customer and +illing to learn from the mistakes)
Maggi also tried to le$erage the success of the 5oodles to other food %roducts like sauces , tastemakers , sou%s etc) Maggi sauces needs s%ecial mention "ecause it is another success stor#) Maggi ha$e a market share of CQ in the 1F0crore ketchu% market in India) Maggi le$eraged the "rand eAuit# $er# effecti$el#) *he %roduct Aualit# +as good and the communication +as e2cellent) *he "rand +as %ositioned as a J?ifferentJ sauce +ith the "aseline J Its differentJ)
/ustomers +as intrigued as to +hat is different a"out the "rand and +as curious to tr# the sauce . ma# "e sur%rised to find nothing different,"ut that is marketing hone#U0) *he ads featuring >a$ed and ,anka& ka%oor +as su%er" and funn#) It +as created "# >3*) *he ne+ cam%aigns are handled "# ,u"licis and the "aseline has "een changed to J en&o# the differenceJ) *here +as no need to change the "aseline,ma# "e ad agencies ha$e an ego %ro"lem in acce%ting the creati$it# of another agenc#) So agencies change the "aseline e$en at the cost of the "rand)In this case e$en though the ne+ "aseline J en&o# the differenceJ +as not $er# different from the old one, +as it a change for the sake of change X I strongl# feel that the "rand managers should take the o+nershi% of the "rand and the +a# it is communicated) If it is left to agenc# alone, e$er# time the agenc# changes, the communication changes) Maggi after its long and tough &ourne# is en&o#ing its +ell deser$ed success)
MA++( SA-CE A/ @ "A>E/ "A))E '
MA *E#(%+ M P !M!#(!%A& S#A#E+(ES
• P !/-C# &()E C'C&E !) MA++(0
? (%# !/-C#(!%0
• *he ,roduct launched kee%ing in mind the +orking +omen and childrens)
• • • •
It +as the %ioneer in instant noodle market) ?istri"ution Stage ,R8?-/1R @ ?IS*RIB-*8RS @ R1*4I61RS @ /85S-M1RS) ,RI/I5;O *he initial %ricing strateg# +as lo+ %ricing strateg# to make %roduct afforda"le) ,R8M8*I85 ,romoted +ith tag line 'B4S 2 MI5-*1)( ,romotion done "# gi$ing gift on em%t# %acks) ,romotion in school)
? + !<#20
• • •
Increased 5o) of sales) 4cce%ted as read# to eat food) 1n&o#ed C0Q market share $alued at 2C0 crores)
• • • • •
,rofits "egin to rise) Maggi "ecome the 5o) 1 "rand in Instant noodles market) ,RI/I5;O ,rices +ere ke%t normal) ,R8?-/*O 5o an# ne+ changes ,R8M8*I85O ,romoted +ith the tag line ';ood to eat fast to cook(
? MA#- (#'0
• • • • • • • •
?eclining sales gro+th) Saturated market) 12tending %roduct line) 6arge %romotional offers) 1ntrance of ne+ %la#ers - ?uring the %eriod of H0Ks M4;;I faces the tough com%etition from *8, R4M15) ,R8?-/*O M4;;I introduced +ide $ariet# of %roducts like ?al atta noodles, chicken maggi, maggi cu%%a mania) ,RI/1O Maggi still comes in $er# afforda"le %rices starting from Rs) C,the# reduced the Auantit# instead of increasing %rice) ?IS*RIB-*I85O ?istri"ution "ecome more intensi$e) Various intensi$e %rograms for encouraging %roducts o$er other com%etitors)
? /EC&(%E0
• • • •
Sales sa+ a decline in 1HH0Ks @ 9ormulation changed from fried "ase to air dried "ase) 5e+ %roduct launched "ut failed- ?al atta noodles sam"ar fla$or *ough com%etition from *o% Ramen) 9ailure of other %roducts like Sou%s, /ooking aids etc)
P !/-C# &()E C'C&E
• S# A#E+(ES A/!P#E/ .' %ES#&E0
? %es4le manages 4o crea4e ne7 Aroduc4 ca4egories under 4he brand name of $MA++(,3 #he8 adoA4ed 4he follo7ing s4ra4egies0
• Maggi introduced the magi sauce categor# and %i<<a $ariant) It is al+a#s easier to %romote a ne+ %roduct under the name of the esta"lished "rand as the e2%enditure and recognition time is less) • 5estle also used the cultural "ase marketing in India as kno+ing the fact that Indian %eo%le like Rice, the# introduced Maggi Rice 5oodles Mania) • 5estle +as a"le to successfull# use the um"rella "randing for Maggi) *he# introduced man# $ariant under the "rand name of Maggi) B# doing so, *he# +ere successful in making the %roduct %o%ular) • Maggi also successfull# a"le to %osition its noodles in the minds of the consumers as the fast food item) • 8n the other hand the# also introduced some categories +hich are ha$ing the com%lete diet in the form of noodles) *he# said that these contain some %rotein and calorie le$el +hich is must for the children) B# doing the emotional marketing the# +ere successfull# a"le to %romote these %roductsO M4;;I Vegeta"le atta noodles, ?al atta noodles, Rice noodle mania, =ealth# sou% etc)
• S# A#E+(ES A/!P#E/ .' %ES#&E MA++(0
?
S4rong Cus4omer
ela4ions0 *he cam%aign designed "# 5estlI for
MaggiKs sil$er &u"ilee ho%es to +ork on the "randKs strong consumer connect through tele$ision, the Internet and %rint) *he &ingle gets a %rominent %la# in the tele$ision cam%aign) 5estlI, IndiaKs largest food %roducts com%an#, has decided not to litter the sk# +ith hoardings on the occasion) Instead, the ads +ill %la# on nostalgia) /onsumers +ho first sam%led the "rand as kids no+ run households) *he cam%aign seeks to strengthen the association) *hus, customers +ill "e in$ited to share their 'Maggi moments( +ith the com%an#) If the com%an# likes the +a# #ou %re%are Maggi, #ou could find #our %hoto on Maggi %acks) 4 ne+ +e"site called +++)meandmerimaggi)com is also in the +orks)
?
+ood Pac1aging and S4rong /ealer >endor ela4ions0 /on$enience
+as the uniAue selling %ro%osition of Maggi +hen it +as launched 2C #ears ago) 9or the first time, consumers got something that +as h#gienicall# %acked and con$enient to %re%are) It +as also the first fusion e2%eriment on food in India)
?
Con4inuous Arocess inno5a4ion0 Instant noodles +as an entirel# ne+
categor# in the countr#, "ut it +as gi$en an Indian t+ist) Maggi came in four $ariantsOMasala, chicken, s+eet B sour and ca%sicum) 8f these, onl# t+o ha$e sur$i$ed Y masala and chicken +hich sells largel# in the eastern states)Masala continues to "e the flagshi% fla$our) In the da#s that follo+ed, it e2%erimented +ith more $ariants, like a garlic- and onion-free one for ;u&arat)Some of these still e2ist, others +ere discontinued)
*he turning %oint came in 200C, +hen 5estlI came out +ith Maggi atta .+hole-+heat flour0 instant noodles) 4ll o$er the countr#, atta is considered healthier than maida or refined flour +hich the com%an# +as using from da# one)
*his hel%ed the com%an# take the health %latform, though 5estlI ;eneral Manager .food "usiness0 Shi$ani =egde insists that the %roduct ne$er ran the danger of "eing classified &unk food) It +as then that it added the tagline, health "hi, taste "hi .health as +ell as taste0)
?
eAosi4ioning as a heal4hier snac10 'It is no longer an as%irational
%roduct for an# socio-economic categor# of consumers,( sa#s =egde *hat +as also the time +hen 5estlI +as re%ositioning itself +orld+ide as a health and +ellness com%an#) 4t the grassroots le$el, Maggi started associating +ith Aui< contests and other such e$ents connected to mental and %h#sical +ell"eing) *his %ositioning ga$e 5estlI the %latform to launch more %roducts under the Maggi "rand) It alread# had Maggi sou%s, sauces and coconut milk in the market, "ut gi$en the strong eAuit# of the "rand, 5estlI could no+ e2tend it to ne+er categories) *hus, it recentl# came out +ith fried masala %aste) In 200F, t+o "rand e2tensions Y Maggi Bhuna Masala and Maggi /u%%a Mania
Instant 5oodles )
?
Price (ncen4i5es0 *he com%an# is taking no chances and is e2tending its
distri"ution reach to smaller to+ns and cities) Maggi ha%%ens to "e 5estlIKs most +idel# distri"uted "rand in the countr#) *hrough inde%endent channels, it reaches those $illages +here the com%an# has no %resence, according to =egde) *his is also the time that MaggiKs $alue-for-mone# %ack %riced at Rs C is e2%ected to come hand#) .*he regular %ack comes for Rs 10)0
?
CaA4uring %e7 Cus4omer .ase 0 Maggi realised that one of the reasons
for a lo+ market share in ;u&arat +as that most of gu&aratis do not eat garlic and 8nions so for ;u&arat Maggi has come u% +ith a s%ecial %roduct +hich is de$oid of onions and garlic and marketed it as >ain Maggi) *his hel%ed them gain a com%letel# unconAuered market of >ain 5oodle eaters)
? Maggi 4urns 9FL %es4le comes uA 7i4h ne7 camAaign
5estle India is out +ith a ne+ marketing dri$e to mark the 2Cth anni$ersar# this #ear of its instant 5oodles "rand, Maggi /alled Me B Meri Maggi, the cam%aign is cele"rating the consumerKs "ond +ith Maggi) *he com%an# is doing'3D0 degree acti$ation( across tele$ision, %rint and the internet, "eside on-ground acti$ities) 5estle has also launched an interacti$e +e"site for the consumers,+++)meandmeri)in *he %ackaging has "een t+eaked to accommodate the %ictures of consumers +hose entries the /om%an# chooses) 'If a consumer has a stor# to tell a"out Maggi +ill %ut him or her on the ,ackaging, *V or %rint,(
• MA++(HS . A%/ E=#E%S(!%0
In 1HHF, 5estle launched MaggiKs first "rand e2tension, Maggi sou%) 4t this stage, *here +as no organi<ed %ackaged sou% market in India) 5estle %lanned to create a market for %ackaged sou% as it felt the categor# had a lot of %otential) =o+e$er, according to anal#st, the com%an# had introduced sou%s onl# to cash in on the MaggiKs "rand name, and +as ne$er $er# serious a"out the segment) In 1HH3, 'S+eet Maggi(, the first $ariant of Maggi noddles +as launched) *he com%an# su%%orted the launch +ith a huge ad$ertisement outla# that amounted to ECQ of the total #earl# e2%enditure on the Maggi "rand) =o+e$er, the %roduct failed to generate the desired sales $olume and 5estle +as forced to +ithdra+ it) 4t the end of the #ear, Maggi noodles +as generating sales $olume of around C000 tonns and remained a loss making %ro%osition for 5estle)
*o "oost sales, 5estle decided to reduce the %rice of Maggi noodles) *his +as made %ossi"le "# using thinner and chea%eer %ackaging material, the com%an# also introduced 'mone# sa$er multi %ackes( in the form of 2-in-1 %ack and -in-1 %acks) 4s a result $olume increases %henomenall# to HE00 tonnes in 1HH and further to 13000 tonnes in 1HHC) MaggiKs eu%horoia +as, ho+e$er, short li$ed, as sales stagnated in 1HHC at the %re$ious #ears le$el) 3ith sou% "usiness "eing threatned by a new entrant ':norr sou%s( launched in 1HHC, offering 10 fla$ors against MaggiKs started rethinking its strategies to+ards the sou% market) In order to stretch MaggiKs "rand to include Indian ethenic foods the com%an# tied u% +ith a ,une "ased chordia foods to launch %ickles under the #ear 1HHC) *he com%an# also tied u% +ith Indian foods fermentation .I990, a /hennai "ased food com%an# to market %o%ular south Indian food %re%aration such as sam"her, dosa, $ada and s%ices in consumer %acks in ?ec 1HHC) *he com%an# re%ortedl# sa+ a lot of unta""ed %otential in the market for read# to use south Indian market) In 1HHD, %roducts from these t+o $entures recei$ed luke+arm res%onse from the marketL sales +ere rather %oor in the regions in +hich the# +ere aunched) 4nal#sts attri"uted the failure of these Maggi e2tensions to the fact that 5estlI seemed to "e %articularl# "ad at dealing +ith traditional Indian %roduct categories) Maggi noodles %erformed "adl# in 1HHD) ?es%ite slo+ sales in the %re$ious t+o #ears, 5estlI had set a sales target of 2C,000 tonnes for the #ear) =o+e$er, Maggi couldnKt cross e$en 1 ,000 tonnes) 4dding to the com%an# +oes +as the failure of Maggi *oniteKs S%ecial, a range of cooking sauces aimed at %ro$iding Trestaurant-like-tasteK to food cooked at home) *he range included offerings such as Butter /hicken gra$# and tomato sauce for %i<<as) -nderstanding these failures, and "uo#ed "# the fact that the Maggi "rand finall# "roke e$en in 1HHE, 5estlI continued to e2%lore ne+ o%tions for le$eraging on the "rand eAuit# of Maggi noodles) *he com%an# reali<ed that the kids +ho had gro+n u% on Maggi noodles had "ecome teenagers "# the late 1HH0s) 4s the# associated the the com%an#
%roduct +ith their childhood, the# seemed to "e mo$ing a+a# from it) *o lure "ack these customers and to e2%lore ne+ %roduct a$enues, 5estlI launched TMaggi MacaroniK in >ul# 1HHE) 4ccording to anal#sts, Maggi Macaroni +as launched %artl# to deal +ith the gro+ing %o%ularit# of com%eting noodles "rand *o% Ramen) Maggi Macaroni +as made a$aila"le in three fla$ors, *omato, /hicken, and Masala) *he com%an# e2%ected to re%eat the success of Maggi noodles +ith Maggi Macaroni) 4s +ith most of its %roduct launches, Maggi MacaroniKs launch +as "acked "# a multi-media ad$ertisement cam%aign including radio, tele$ision, outdoors and %rint media +ith the tagline, T*um Ro< Ba"#) *he %roductKs %ricing, ho+e$er, %ro$ed to "e a ma&or hurdle) 4 EC-gm Maggi Macaroni %ack +as %riced at Rs 11, +hile a 100-gm noodles %ack +as a$aila"le at Rs H) 4ccording to anal#sts, 5estlI failed to &ustif# this %rice-$alue anomal# to customers, +ho failed to see an# noted $alue addition in Maggi Macaroni .%ackaging and fla$or $ariants +ere similar to those of Maggi noodles0) In addition, customers failed to see an# significant difference "et+een Maggi Macaroni and the much chea%er macaroni that +as sold "# the unorgani<ed sector %la#ers) *he "iggest %ro"lem ho+e$er +as the taste of the ne+ %roduct) Since macaroni is thicker than noodles, Maggi Macaroni did not a"sor" the tastemaker +ell and conseAuentl# did not taste $er# good) *he interest generated "# the no$elt# of the %roduct soon died out and sales "egan ta%ering off) 1$entuall#, 5estlI had to +ithdra+ Maggi Macaroni com%letel# from the market) 5estlI had not e$en reco$ered from MacaroniKs dismal %erformance, +hen it learnt to its horror that :norr had dethroned Maggi as the leader in the sou% segment .end of 1HHE0) *he onl# sa$ing grace for Maggi seemed to its ketchu%s and sauces, +hich +ere turning out to the TrareK successful e2tensions of Maggi) *hese %roducts +ere su%%orted "# a %o%ular ad$ertisement cam%aign for the Maggi =ot B S+eet sauce "rand) *hese humorous ad$ertisements, featuring actors ,anka& :a%oor and >a$ed >afri, used the tagline, TItKs different)K =o+e$er, during mid-1HHE, =66 "egan %romoting its :issan range of sauces aggressi$el# and launched $arious inno$ati$e $ariants in the categor#)
5estlI res%onded +ith a higher thrust on ad$ertising and different si<e %acks at different %rice %oints) *hough :issan gained market share o$er the ne2t fe+ #ears, Maggi +as a"le to hold on to its o+n market share) Mean+hile the o%erational costs of Maggi noodles had increased considera"l#, forcing the com%an# to increase the retail %rice) B# earl# 1HHE, the %rice of a single %ack had reached Rs 10) Volumes +ere still languishing "et+een 13,000- 1 ,000 tonnes)
• P (C(%+ A%/ P !/-C# /E>E&!PME%#0
It +as at this %oint in time that 5estlI decided to change the formulation of Maggi noodles) *he %ur%ose +as not onl# to infuse Tfresh lifeK into the "rand, "ut also to sa$e mone# through this ne+ formulation) *he com%an# used ne+ noodle-%rocessing technolog#, so that it could air-dr# instead of oil-fr# the noodles) *he tastemakerKs manufacturing %rocess +as also altered) 4s a result of the a"o$e initiati$es, costs re%ortedl# came do+n "# 12-1 Q) *o cook the ne+ %roduct, consumers had to add t+o cu%s of +ater instead of one-and-a-half cu%s) *he taste of the noodles +as significantl# different from +hat it used to "e) *he customer "acklash that follo+ed the launch of the ne+ noodles took 5estlI "# sur%rise) 3ith $olumes declining and customer com%laints increasing, the com%an# "egan to +ork on %lans to relaunch Told MaggiK to +in "ack customers) In addition, in 1HHF, 5estlI "egan +orking out a strateg# to regain MaggiKs %osition in the sou% segment) *o counter the :norr threat, the com%an# relaunched Maggi sou%s under the TMaggi RichK "rand in Ma# 1HHF) *he sou%s +ere not onl# thicker in consistenc# than those %roduced earlier, the %ricing +as also ke%t com%etiti$e and the %ackaging +as made much more attracti$e) =o+e$er, :norr took 5estlI "# sur%rise "# launching one-ser$ing sou% sachets %riced as lo+ as Rs ) =66 too
launched t+o-ser$ing sachets of :issan sou% %riced at Rs E) 4s Maggi did not ha$e an# offerings in this %rice-range, it lost a huge %ortion of its market share to :norr) *he relaunch %rom%ted market o"ser$ers to com%are 5estlIKs mo$e +ith -S soft drinks ma&or /oca-/olaKs T5e+ /okeK fiasco) =o+e$er, the com%an# disagreed, 'ItKs a hard-C nosed strateg#, that mi2es nostalgia +ith the consumerKs $oiced %reference for the %roduct it has "een "red and rought u% on) *he reintroduction is 5estlIKs ackno+ledgement of the lo#alt# of the Indian mother and the child to the original %roduct)( B# Ma# 1HHH, 5estlIKs decision to "ring "ack the Told MaggiK seemed to ha$e %aid off) *+o months after the relaunch, the monthl# a$erage sales of Maggi noodles n the northern region rose C0Q in com%arison to the %re$ious #ear) In >ul# 1HHH, TMaggiK the "rand, +as %romoted as the "iggest "rand in 5estlIKs %ortfolio of "rands in India, o$ertaking "rands such as 5estum and /erelac) 5estlI "elie$ed that Maggi had immense %otential as it +as a $er# Tfle2i"leK "rand under +hich regional $ariants could "e introduced to meet $arious market needs) /om%an# sources claimed that +ith reasona"le %rice %oints and inno$ati$e %roducts, Maggi could emerge as a to% "rand and a ma&or gro+th dri$er for the com%an#) *o further su%%ort the "rand, 5estlI carried out $arious %romotional acti$ities as +ell) *hese included the 4ugust 1HHH T9un-?oo<K cam%aign and >ungle >ack%ot cam%aigns) D 4s a result of the a"o$e initiati$es, 5estlI claimed to ha$e cornered an F1Q market share of the 20,000 tonnes noodles market "# the end of 1HHH) 5estlI sources claimed that Maggi noodles outsold the com%etition four times o$er and that more than four Maggi noodle cakes +ere consumed e$er# second in the countr#)
• MA *E# PE%E# A#(!% S# A#E+'0
Maggi started +ith %romotional cam%aigns in the school to see the reaction of children after eating Maggi) • • • • Started their ad$ertising straight focusing on kids) Introduced ne+ %roducts like atta noodles dal atta noodles cu%%a mania) ,roducts are made a$aila"le in different %ackages like C0,100,200, 00 ;ms) :ee% on conducting market research to understand changes in market)
*hough Maggi has "een successful e$er# time, there +ere times +hen it faced challenges) Some of these areO • Sales sa+ decline in 1HH0O *he /om%an# sa+ a decline in the sales in 1HH0) 3hen the com%an# tried to find out +hat the reason +as, the# came to kno+ that there +as some thing +rong +ith the formula that s%oiled the taste) So the formula +as changed from fried "ase to oiled dried "ase) • /om%etition increased in noodle segmentO 3hen Maggi +as en&o#ing "eing the onl# noodle offering "# an# com%an# *o% ramen entered the market as a com%etition) *his +as a "ig challenge for Maggi) *hough *o% Ramen couldnKt do +ell in India) • 5e+ %roduct launched in market "ut failed- 5estle decided to e2%and its offerings "# offering ?al atta noodles B Sam"har fla$or noodles) But these %roducts +ere not +elcomed "# the %eo%le the $er# s%ecial taste of Maggi +as still ruling the consumer) • Maggi launched some ne+ %roductsO :etchu%s, Sou%s, *aste makers etc) "ut the# +ere not successful)
!."EC#(>ES M
ESEA C2 ME#2!/!&!+'
Gualitati$e method +ill "e used in the stud#) Gualitati$e method stri$es on understanding data through gi$ing em%hasis on determining %eo%le +ords and actions) *his %ro&ect titled as mentioned in$ol$es the stud# of Marketing B %romotional strateg# of 5estle Maggi is com%leted "# collecting data from the "elo+ mentioned t+o sources-
Sources of /a4a collec4ion
? Primar8 source *he %rimar# data used in this re%ort include the Auestionnaire in +hich the consumerRcustomer data is collected regarding their $ie+s to+ards nestle maggi) ? Secondar8 source *his +ill include data collection from $arious +e"sites and "ooks) It also includes data from com%an# and other referral sites and sources)
&(M(#A#(!% !) #2E
EP! #
1$er# attem%t +ill "e taken to o"tain the error free and meaningful result "ut as nothing in this +orld is 100Q %erfect I "elie$e that there +ill still the chance for error on account of follo+ing limitations.10 Res%ondentKs una$aila"ilit#) .20 *ime %ressure and fatigue on the %art of res%ondents and inter$ie+er) .30 /ourtes# "ias) . 0 *he %ro&ect undertaken needs a lot of secondar# data so the a$aila"ilit# and %recision of this data forms the ma&or limitation as the "iasness has to "e minimi<ed) .C0 *he results and conclusions of the %ro&ect cannot "e generali<ed in all area of an organi<ation) .D0 *here +as a shortage of time and resources for the functioning the o%eration) .E0 *he data in this stud# is ma2imum taken from the %rimar# sources )so, these data is not full# e2act) .F0 *here +as a hurdle in the collection of data from %rimar# sources i)e) risk# as +ell as incom%lete)
C2AP#E - ; A%A&'S(S M (%#E P E#A#(!%
N 93 <ha4 comes firs4 in 8our mind 7hen 8ou hear 4he 7ord MA++(O
5oodle 9ast food Snacks 5one of these
3C 10 C 0
(n4erAre4a4ion
8ut of C0 around 3C agreed that +hen the# hear the +ord M4;;I first noodles comes in their mind B 10Q said fast food B other said snacks)
N ;3 <ha4 is 4he brand 4ha4 comes 4o 8our mind 7hen 7e sa8 4he 7ord noodlesO
Maggi #i%%ie *o%ramen noodles 4nil noodles
3F 10 2 0
(n4erAre4a4ion
8ut of C0 a%%ro2 3F Q of %eo%le said +hen the# talk a"out noodle maggie comes first in their mind B 10Q said #i%%ie noodle comes in their mind B other said to%ramen)
N 43 an1 4he follo7ing Maggi Aroduc4s 73r34 frePuenc8 of Aurchase 7i4h being 4he highes4 ran1
5oodles :etchu% Sou% %ickles cu"es
1 rank 2 rank rank C rank 3 rank
(n4erAre4a4ion
5o of customer gi$en rank 1 to the noodles in %urchase of maggi %roduct, rank 2 to the ketchu%, rank 3 to the cu"es, rank maggi %roduct) to the sou% B rank C to %ickles in %urchase of
N F3 <i4h 7ha4 Aroduc4 7ould 8ou associa4e 4he brand MaggiO
:etchu% 5oodles Sou% Masala
12Q ECQ 10Q 3Q
(n4erAre4a4ion
ECQ of consumer associate the noodle +ith "rand maggi, 12Q consumer associate the ketchu%, 10Q consumer associate +ith sou% B 3Q associate the masala +ith "rand maggi)
N 63 !n a scale of : 4o F ra4e Maggi on 4he follo7ing Aarame4ers
*aste =#gieneR%urt# Variet#Rfla$or 4$aila"ilit# %ackaging
C 3 C
(n4erAre4a4ion
9rom the scale 1 to C the consumers ga$e C.highest rate0 to the taste B a$ala"ilit#, rate to the h#gieneR%urit# B %ackaging B 3.lo+er rate0 to the $ariet# B fla$our) So the com%an# need to introduce maggi in different $ariet# B fla$our)
N Q3 an1 4he ca4egories 7hich Maggi should loo1 in fu4ure in order of 8our imAor4ance0
/hocolate Salted %otato chi%s 9ruit &uice ,rocessed foods
E 1C 3 20
others
C
(n4erAre4a4ion
=ere the consumer ranked the maggi should look in future in order their im%ortance B 20Q of %eo%le said it should "e in %rcessed food, 1CQ of %eo%le said it should "e in salted %otato chi%s, EQ said it should "e in chocolate , 3Q in fruit &uce B remaining said others) So com%an# should take the action to fulfill the consumer demand according to their im%ortance)
N R3 2o7 do 8ou ra4e Maggi brand in 4erms of follo7ing Aarame4ers3
12%ertise *rust+orthiness 6ia"ilit# 5one of these
C 3 1
(n4erAre4a4ion *he consumer rate the maggi in the %arameters e2%ertise, trust+orthiness, lia"ilit#, none of these)the# ga$e C.highest0 to the trust+orthiness, 1.lo+est0 to the other factores) to e2%ertise, 3 to lia"ilit# B
N 93 2o7 do 8ou Aercei5e Maggi Aroduc4sO ;ood to health Read# to eat >unk food 1C 2C 3
*ast#Rfun eating
E
(n4erAre4a4ion 2CQ of %eo%le %ercie$e the maggi %roduct read# to eat, 1CC of %eo%le %ercie$e good to health, EQ of %eo%le %ercie$e it as &unk food B 3Q %ercie$e it as tast#Rfun eating)
N :03 <hich Maggi Aroduc4s in noodles ca4egor8 do 8ou regularl8 bu8O J eAosi4ioning A7arenessK Maggi masala Maggi $egeta"le atta noodle Maggi dal atta noodle Maggi rice noodle mania others 2C 10 C F 2
(n4erAre4a4ion 8ut of C0 half of consumer consume maggi masala, 10 consumer consume maggi $egeta"le atta noodle, F consume maggi rice noodle mania, C consumer consume dal atta noodleB remaninig consume other) So the marketing B sale of maggi masala noodle is more as com%ared to other maggi noodle)
N ::3 /o 8ou Aercei5e maggi noodles as a heal4h8 Aroduc4O 7es 5o 3C 1C
(n4erAre4a4ion 8ut of 100Q , ECQ of consumers agreed that maggi noodles is a healt# %roduct B 2CQ of consumers said that maggie noodle is not a health# %roduct)
• S#P A%A&'S(S0
? SE+ME%#A#(!%0
Market Segmentation di$ides the heterogeneous market into homogenous grou%s of customers +ho share a similar set of needsR+ants and could "e satisfied "# s%ecific %roducts) Maggi Brand ha$e segmented the market on the "asis of lifest#le and ha"its of -RB45 94MI6I1S)
? #A +E#0
Market *argeting refers to e$aluating and deciding from amongst the $arious alternati$es, +hich segment can "e satisfied "est "# the com%an#) *he Maggi Brand ha$e mainl# targeted the :ids, 7outh, 8ffice ;oers B 3orking 3oman +hich falls into the categor# of 'con$enience @sa$$# time misers( +ho +ould like to get something instant and "e o$er +ith it Auickl#)
? P!S(#(!%(%+0
Market ,ositioning is the act of designing the com%an#Ks offerings and image to occu%# a distincti$e %lace in the minds of the target market) *he goal of %ositioning is to locate the "rand in the minds of consumers to ma2imise the %otential "enefit to the firm) Maggi has %ositioned itself in the S54/:S categor# and not in the meal categor# since Indians do not consider noodles as a %ro%er food item) *herefore Maggi ha$e de$elo%ed its "rand image of instant food %roducts +ith %ositioning statements such as '2 minutes noodles ( and '1as# to cook, good to eat()
• S<!# A%A'S(S0
? S# E%+#20
• • • • • • • • 1sta"lished 9amil# Brand) Strong ;lo"al /or%orate Brand.5I60) S%eciali<ation in food %rocessing categor# marketing and distri"ution in ur"an market) ,resence of other %roduct segments of food categor#O dair# %roduct, chocolate, infant foods) ,ioneer and leader so mo$er ad$antage in 5oodles, Sauces, :etchu%s and Sou% market) 5estle s#m"oli<ation of +arm, famil# B shelter) Research and de$elo%ment di$ision in India) 5e+ 5oodles %lant in -ttranchal)
? <EA*%ESS0
• • • • ;eneric "rand to 5oodles in India) 6o+ rural market %resences constraints) -niform "rand for all food categor#) Brand %roliferation)
? !PP- #-%(#(ES0
• • ;ro+ing %ackage and canned food market in India "#1CQ annuall#) =igh "rand a+areness of Indian consumers)
• •
8ther %roduct categor# like Biscuits, /hi%s and read# to eat market still une2%lored) 8%%ortunities to "e su"stitute to other snacks categor# of food %roducts)
? #2 EA#S0
• /om%etitors +ith long histor# in %roduct categor# Internationall# like, =ein< sauce and :etchu%s of =ein< Indian, *o% Ramen in 5oodles and :norr sou%s) • Single %roduct focused com%etitors like =ein< sauce and 3ai 3ai 5oodles) • • • 6ess entr# "arriers in the market segment for %roduct categor#) I*/Ks strong "ase in Indian market) Su"stitute %roduct to %roduct segment)
C2AP#E
@4
C!%C&-S(!% M EC!ME%/A#(!%S
• C!%C&-S(!%0
*he food %rocessing "usiness in India is at a nascent stage) /urrentl#, onl# a"out 10Q of the out%ut is %rocessed and consumed in %ackaged form thus highlighting huge %otential for e2%ansion and gro+th) *raditionall#, Indians "elie$e in consuming fresh stuff rather than %ackaged or fro<en, "ut the trend is changing and the ne+ fast food generation is slo+l# changing) Riding on the success of noodles, 5estle India, tried to make e2tensions of the Maggi "rand to a num"er of %roducts like, sauces, ketchu%s, %ickles, sou%s, tastemakers and macaroni in the mid-1HH0s) -nfortunatel#, the macaroni and %ickles didnKt %ick u% as e2%ected) *he sou%s and sauces did some+hat fine, gathering considera"le sales $olumes and ha$e a satisfactor# %resence e$en toda#) TMaggi 5oodlesK itself faced a "it of difficult# +ith res%ect to TtasteK, and nearl# lost its %osition in the minds of Indian consumers in the late 1HH0s) 3hen 5estle changed the formulation of its tastemaker, the ominous %acket that came along +ith Maggi 5oodles, a ma&or chunk of consumers +ere %ut-off and sales started dro%%ing) 4lso, MaggiKs com%etitor T*o%RamenK took ad$antage of the situation and started a %arallel aggressi$e cam%aign to eat into MaggiKs market share) But the com%an# Auickl# realised this and +ent "ack into making the original formula cou%led +ith a free sam%ling cam%aign) *his hel%ed Maggi to +in "ack its lost consumers and %ushed u% its sales $olumes againU Maggi *he #ear 200F sa+ India leading in +orld +ide Maggi sales) *he "rand has gro+n to an estimated $alue of Rs 1D0-1E0 crore and contri"utes at least F@HQ to 5estle IndiaKs to% line) 4ll the same, some 9M/; anal#sts feel that the "rand has not done much to e2%and the noodles categor#) 1$en after 2C #ears of its launch, the si<e of the instant noodles market is #et Auite small at Rs 300 crore) But #es, the %arent com%an#, 5estle India 6imited has certainl# encouraged the "rand to enter into other culinar# %roducts)
•
EC!MME%/A#(!%0
? 9ora# into the other food %roducts like chi%s, chocolates etc) under its sole "rand name Maggi as Maggi is a "rand in itself +hich has "een +ell recogni<ed "# the masses) ? Maggi should 9ocus on creating a %roduct that do not need an# cooking) ? It should conduct %romotional cam%aigns at schools in small to+ns +ith %o%ulation not more than 1000 ? It should strengthen the distri"ution channel of the rural areas +ithin 100km of all the metros) ? It should launch ne+ ad$ertisement cam%aign .*V, radio, %rint media commercials0 +ith a "rand am"assador or mascot
A%%E=- E
N-ES(!%%A( E
N :3 <ha4 Aroduc4 7ould 8ou associa4e 7i4h 4he 4ag line men4ioned belo7O ? Its differentWWWWWWWWWWWWWWWWWW) ? ?onKt "e a noodle, "e a snoodleWWWWWWWWWWWWWWWW ? 2 minute noodlesR"as 2 minuteWWWWWWWWWWWWWWWW ? >itna tast#, utna health#WWWWWWWWWWWWWWWWW ? Mumm# "hook lagi hWWWWWWWWWWWWWWWWW ? *r# it +ith a t+istWWWWWWWWWWWWWWWW)) ? =eart# sou% +arm #ou from insideWWWWWWWWWWWWWWWW) ? 9ast to cook, good to eatWWWWWWWWWWWWWWWWWW))
N 93 <ha4 comes firs4 in 8our mind 7hen 8ou hear 4he 7ord MA++(O
? 5oodles ? 9ast 9ood ? Snacks ? 5one of these
N ;3 <ha4 is 4he brand 4ha4 comes 4o 8our mind 7hen 7e sa8 4he 7ord noodlesO
? Maggi ? *o% Ramen ? 3ai 3ai 5oodles ? 4nil 5oodles
N 43 an1 4he follo7ing Maggi Aroduc4s 73r34 frePuenc4 of Aurchase 7i4h being 4he highes4 ran1
? 5oodles ZZZZZZ ? :etchu% ZZZZZZ ? Sou% ZZZZZ
? ,ickles ZZZZZ
? /u"es ZZZZZ
N F3 <i4h 7ha4 Aroduc4 7ould 8ou associa4e 4he brand MaggiO
? :etchu% ? 5oodles ? Sou% ? Masala
N 63 !n a scale of : 4o F ra4e Maggi on 4he follo7ing Aarame4ers
? *aste ZZZZ ? =#giene R,urit# ZZZZ ? Variet#R9la$ors ZZZZ ? 4$aila"ilit# ZZZZ ? ,ackaging ZZZZ
N Q3 an1 4he ca4egories 7hich Maggi should loo1 in fu4ure in order of 8our imAor4ance0
? /hocolates ZZZZZ ? Salted %otato chi%s ZZZZ
? 9ruit &uices ZZZZ ? ,rocessed foods.read# to use %astes and masalas0 ZZZZ ? 8thers.%lease mention0 ZZZZZZZZZZZZZZZZ
N R3 2o7 do 8ou ra4e Maggi brand in 4erms of follo7ing Aarame4ers N 93 2o7 do 8ou Aercei5e Maggi Aroduc4sO ? ;ood to health ? Read# to eat ? >unk food ? *ast#Rfun eating N :03 <hich Maggi Aroduc4s in noodles ca4egor8 do 8ou regularl8 bu8O J eAosi4ioning A7arenessK ? Maggi masala ? Maggi $egeta"le atta noodles ? Maggi dal atta noodles ? Maggi rice noodle mania ? 8thers N ::3 /o 8ou Aercei5e maggi noodles as a heal4h8 Aroduc4O
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• .!!*S0 ;-,*4 /)B), Marketing Management, Sultan /hand B Sons, 200 )
/=4BR4 *)5) B ;R8V1R S)
, Marketing Management, ?han%at Rrai B/o),2010)
• <E. S(#ES0 htt%ORRen)+iki%edia)orgR+ikiR5estle htt%ORRen)+iki%edia)orgR+ikiRMaggi
http://en.wikipedia.org/wiki/Fast-moving_consumer_goods http://www.managementparadise.com\ http://www.bms.co.in
doc_211235462.doc
P !"EC# EP! #
$A%A&'S(S !) MA *E#(%+ S# A#E+(ES !) %ES#&E MA++(,
S-.M(##E/ .'0 ona1 23 aichura #3'3.MS{Semes4er-5} Pro6ec4 +uide0 Prasi1a +ai17ad -ni5ersi48 of Mumbai 90:;-:4
/EC&A A#(!%
I, Ronak Raichura student of Bachelor in Business Management Studies Semester V {2013-1 !, here"# declare that II ha$e com%leted the %ro&ect on Anal8sis of Mar1e4ing S4ra4egies !f %es4le the "est of m# kno+ledge
'
() *he information su"mitted is true and original to
Cer4ifica4e
*his is to certif# that Mrs Ronak Raichura of Bachelor in Management Studies Semester V {2013-201 ! has successfull# com%leted the ,ro&ect on
$A%A&'S(S !) MA *E#(%+ S# A#E+(ES !) %ES#&E MA++(,
-nder the guidance of Prof3 Prasi1a +ai17ad ./ourse coordinator0 .,rinci%al0
.Internal 12aminer0
.12ternal 12aminer0
.Signature of the Student0 Ronak Raichura
AC*%!<&E/+EME%#
3ith immense %lease I Ronak Raichura is %resenting $45467SIS 89
M4R:1*I5; S*R4*1;I1S 89 51S*61 M4;;I( ,ro&ect Re%ort as a %art
of the curriculum of $Bachelors in Business Management Studies,3
S%ecial thanks to -ni$ersit# of Mum"ai for organi<ing the course of Management Studies
I e2%ress m# %rofound thanks to the ,rinci%al and /o-ordinator ,rof) =I54 74>5I:
I take this o%%ortunit# to e2%ress m# dee% gratitude to+ards m# %ro&ect guide ,rof) ,R4S=I:4 ;4I:34? for hel%ing me in com%letion of the %ro&ect) I +ish to thank all %eo%le +ho ga$e me unending su%%ort)
9urther I thank all m# class mates and all those +ho ha$e indirectl# guided and hel%ed me in %re%aration of this %ro&ect to its destination)
ona1
aichura
E=EC-#(>E S-MMA '
*he %ro&ect aims at understanding the Marketing strategies of 5estle Maggi) Research has demonstrated conclusi$el# that it is far more costl# to +in a ne+ customer than it is to maintain an e2isting one) 4nd there is no "etter +a# to retain a customer than to e2ceed his e2%ectations) 9or this %ur%ose it is essential to kno+ the le$el of customer satisfaction) *he focus of m# research +as the measurement of customer satisfaction %ro$ided "# 5estle Maggi) *here can "e no "etter o%%ortunit# to interact +ith the e2ternal as +ell as the internal customers of an organi<ation) 9inall# the results of the research $erif# the fact that kee%ing the customer satisfied is the "est strateg# to not onl# retains the e2isting customers "ut also to e2%and the "usiness to ne+ hori<ons) 9ast-mo$ing consumer goods .9M/;0 @ or consumer %ackaged goods ./,;0 @ are %roducts that are sold Auickl# and at relati$el# lo+ cost) 12am%les include non-dura"le goods such as soft drinks, toiletries, and grocer# items)*hough the a"solute %rofit made on 9M/; %roducts is relati$el# small, the# generall# sell in large Auantities, so the cumulati$e %rofit on such %roducts can "e su"stantial) *he term 9M/; refers to those retail goods that are generall# re%laced or full# used u% o$er a short %eriod of da#s, +eeks, or months, and +ithin one #ear) *his contrasts +ith dura"le goods or ma&or a%%liances such as kitchen a%%liances, +hich are generall# re%laced o$er a %eriod of se$eral #ears) 9M/; ha$e a short shelf life, either as a result of high consumer demand or "ecause the %roduct deteriorates ra%idl#) Some 9M/;s @ such as meat, fruits and $egeta"les, dair# %roducts and "aked goods @ are highl# %erisha"le) 8ther goods such as alcohol, toiletries, %re-%ackaged foods, soft drinks and cleaning %roducts ha$e high turno$er rates)
#A.&E !) C!%#E%#S
1) Introduction 2) /om%an# %rofile 3) Re$ie+ of literature ) 8"&ecti$e B sco%e of re%ort C) Methodolog# D) 6imitation E) 4nal#sis B inter%retation a) S*, 4nal#sis ") S38* 4nal#sis F) /onclusion B recommendation
4nne2ure • Guestionnaire • Bi"liogra%h#
C2AP#E
-:
(%# !/-C#(!% #! #2E P !"EC#
*he ,ro&ect entitled '45467SIS 89 M4R:1*I5; 45? ,R8M8*I8546 S*R4*1;I1S 89 M4;;I( deals +ith the stud# of the Maggi Brand that +as launched in India in the #ear 1HF3, "# 5estle India 6imited, +hich "ecame s#non#mous +ith noodles) Mainl#, this %ro&ect studies the Marketing and ,romotional strategies that are ado%ted "# 5estle India 6imited for Maggi o$er the #ears) 4nd also to kno+ a"out the market %osition of Maggi as a Brand, ho+ the# sur$i$ed in the %ast, +hat all strategies the# ado%ted to "ecome a +ell kno+n and +ell esta"lished "rand)
? !."EC#(>ES !) #2E P !"EC#0
? *o -nderstand the Marketing and ,romotional Strategies ado%ted "# 5estle Maggi) ? *o understand the "rand %erformance of Maggi %roduct) ? *o understand Brand Imager#, Brand Gualit# %ercei$ed "# customers, Brand /redi"ilit#, consideration, su%eriorit#) ? Brand e2tension of Maggi in terms of %roduct di$ersit#)
C!MPA%' P !)(&E
• (%# !/-C#(!% #! %ES#&E0
%es4l? S3A3 is among the largest consumer %ackaged goods com%anies in the +orld, founded and headAuartered in Ve$e#, S+it<erland) 5estlI originated in a 1H0C merger of the 4nglo-S+iss Milk /om%an#, +hich +as esta"lished in 1FDD "# "rothers ;eorge ,age and /harles ,age, and the 9arine 6actIe =enri 5estlI /om%an#, +hich +as founded in 1FDD "# =enri 5estlI, +hose name meant J6ittle 5estJ) *he com%an# gre+ significantl# during the 9irst 3orld 3ar and follo+ing the Second 3orld 3ar, e$entuall# e2%anding its offerings "e#ond its earl# condensed milk and infant formula %roducts) *oda#, the com%an# o%erates in FD countries around the +orld and em%lo#s nearl# 2F3,000 %eo%le)
? 2(S#! ' !) %ES#&E0
*he com%an# dates to 1FDE, +hen t+o se%arate S+iss enter%rises +ere founded that +ould later form the core of 5estlI) In the succeeding decades the t+o com%eting enter%rises aggressi$el# e2%anded their "usinesses throughout 1uro%e and the -nited States) In 4ugust of 1FDE /harles 4) and ;eorge ,age, t+o 4merican "rothers from 6ee /ount#, I6, esta"lished the 4nglo-S+iss /ondensed Milk /om%an# in /ham) *heir first British o%eration +as o%ened at /hi%%enham, 3iltshire in 1FE3) In Se%tem"er 1FDE, in Ve$e#, =enri 5estlI de$elo%ed a milk-"ased "a"# food and soon "egan marketing it) =enri 5estlI retired in 1FEC, "ut the com%an#, under ne+ o+nershi%, retained his name as 9arine 6actIe =enri 5estlI)
=enri 5estlI) In 1FEE 4nglo-S+iss added milk-"ased "a"# foods to its %roducts, and in the follo+ing #ear the 5estlI com%an# added condensed milk, so that the firms "ecame direct and fierce ri$als) In 1H0C the com%anies merged to "ecome the 5estlI and 4nglo-S+iss /ondensed Milk /om%an#, retaining that name until 1H E, +hen the name 5estlI 4limentana S4 +as taken as a result of the acAuisition of 9a"riAue de ,roduits Maggi S4 .founded 1FF 0 and its holding com%an#, 4limentana S4 of :em%ttal, S+it<erland) Maggi +as a ma&or manufacturer of sou% mi2es and related foodstuffs) *he com%an#Ks current name +as ado%ted in 1HEE) B# the earl# 1H00s, the com%an# +as o%erating factories in the -nited
States, -nited :ingdom, ;erman# and S%ain) 3orld 3ar I created ne+ demand for dair# %roducts in the form of go$ernment contractsL "# the end of the +ar, 5estlIMs %roduction had more than dou"led) 4fter the +ar, go$ernment contracts dried u% and consumers s+itched "ack to fresh milk) =o+e$er, 5estlIMs management res%onded Auickl#, streamlining o%erations and reducing de"t) *he 1H20s sa+ 5estlIMs first e2%ansion into ne+ %roducts, +ith chocolate the com%an#Ms second most im%ortant acti$it#)
5estlIMs logo used until 1HE0s) 5estlI felt the effects of 3orld 3ar II immediatel#) ,rofits dro%%ed from -SN20 million in 1H3F to -SND million in 1H3H) 9actories +ere esta"lished in de$elo%ing countries, %articularl# 6atin 4merica) Ironicall#, the +ar hel%ed +ith the introduction of the com%an#Ms ne+est %roduct, 5escafI, +hich +as a sta%le drink of the -S militar#) 5estlIMs %roduction and sales rose in the +artime econom#) *he end of 3orld 3ar II +as the "eginning of a d#namic %hase for 5estlI) ;ro+th accelerated and com%anies +ere acAuired) In 1H E came the merger +ith Maggi seasonings and sou%s) /rosse B Black+ell follo+ed in 1HC0, as did 9indus .1HD30, 6i""#Ms .1HE10 and StoufferMs .1HE30) ?i$ersification came +ith a shareholding in 6M8rIal in 1HE ) In 1HEE, 5estlI made its second $enture outside the food industr# "# acAuiring 4lcon 6a"oratories Inc) In 1HF , 5estlIMs im%ro$ed "ottom line allo+ed the com%an# to launch a ne+ round of acAuisitions, nota"l# 4merican food giant /arnation and the British confectioner# com%an# Ro+ntree Mackintosh in 1HFF, +hich "rought the 3ill# 3onka Brand to 5estlI)
*he first half of the 1HH0s %ro$ed to "e fa$ora"le for 5estlIO trade "arriers crum"led and +orld markets de$elo%ed into more or less integrated trading areas) Since 1HHD there ha$e "een acAuisitions including San ,ellegrino .1HHE0, S%illers ,etfoods .1HHF0, and Ralston ,urina .20020) *here +ere t+o ma&or acAuisitions in 5orth 4merica, "oth in 2002O in >une, 5estlI merged its -)S) ice cream "usiness into ?re#erMs, and in 4ugust a -SN2)D "illion acAuisition +as announced of /hef 4merica, the creator of =ot ,ockets) In the same time frame, 5estlI came close to %urchasing the iconic 4merican com%an# =ershe#Ms, though the deal fell through) 4nother recent %urchase includes the >enn# /raig +eight loss %rogram for -S N D00 million) In ?ecem"er 200C 5estlI "ought the ;reek com%an# ?elta Ice /ream for P2 0 million) In >anuar# 200D it took full o+nershi% of ?re#erMs, thus "ecoming the +orldMs "iggest ice cream maker +ith a 1E)CQ market share) In 5o$em"er 200D, 5estlI %urchased the Medical 5utrition di$ision of 5o$artis ,harmaceutical for N2)CB, also acAuiring in 200E the milk fla$oring %roduct kno+n as 8$altine) In 4%ril 200E 5estlI "ought "a"# food manufacturer ;er"er for NC)C "illion) In ?ecem"er 200E 5estlI entered in a strategic %artnershi% +ith a Belgian chocolate maker ,ierre Marcolini) 5estlI agreed to sell its controlling stake in 4lcon to 5o$artis on >anuar# 2010) *he sale forms %art of a "roader -S N3H)3 "illion offer "# 5o$artis to full# acAuire the +orldKs largest e#e-care com%an#)
? P !/-C#S !) %ES#&E0
5estlI has D,000 "rands, +ith a +ide range of %roducts across a num"er of markets including coffee .5escafI0, "ottled +ater, other "e$erages .including 4ero .chocolate0 B Skinny Cow0, chocolate, ice cream, infant foods, %erformance and healthcare nutrition, seasonings, fro<en and refrigerated foods, confectioner# and %et food)
? EA %(%+S !) %ES#&E0
In 200H, consolidated sales +ere /=9 10E)D "illion and net %rofit +as /=9 10) 3 "illion) Research and de$elo%ment in$estment +as /=9 2)02 "illion)
•
Sales "# acti$it# "reakdo+nO 2EQ from drinks, 2DQ from dair# and food
%roducts, 1FQ from read#-%re%ared dishes and read#-cooked dishes, 12Q from chocolate, 11Q from %et %roducts, DQ from %harmaceutical %roducts and 2Q from "a"# milks)
•
Sales "# geogra%hic area "reakdo+nO 32Q from 1uro%e, 31Q from 4mericas
.2DQ from -S0, 1DQ from 4sia, 21Q from rest of the +orld)
? "!(%# >E%#- ES0
5estlI holds 2D) Q of the shares of 6K8real, the +orldMs largest com%an# in cosmetics and "eaut#) *he Laboratories Inneov is a &oint $enture in nutritional cosmetics "et+een 5estlI and 6K8real, and Galderma a &oint $enture in dermatolog# +ith 6K8real) 8thers include /ereal ,artners 3orld+ide +ith ;eneral Mills, Be$erage ,artners 3orld+ide +ith /oca-/ola, and ?air# ,artners 4mericas +ith 9onterra)
(%/-S# ' P !)(&E
9ast Mo$ing /onsumer ;oods .9M/;0 goods are %o%ularl# named as consumer %ackaged goods) Items in this categor# include all consuma"les .other than groceriesR%ulses0 %eo%le "u# at regular inter$als) *he most common in the list are toilet soa%s, detergents, sham%oos, tooth%aste, sha$ing %roducts, shoe %olish, %ackaged foodstuff, and household accessories and e2tends to certain electronic goods) *hese items are meant for dail# of freAuent consum%tion and ha$e a high return) *he Indian 9M/; sector +ith a market si<e of -SN1 )F "illion is the fourth largest sector in the econom#) *he 9M/; market is set to dou"le from -S? 1 )E "illion in 200F-0H to -S? 30 "illion in 2012) 9M/; sector +ill +itness more than D0 %er cent gro+th in rural and semi-ur"an India "# 2010) Indian consumer goods market is e2%ected to reach N 00 "illion "# 2010)=air care, household care, male grooming, female h#giene, and the chocolates and confectioner# categories are estimated to "e the fastest gro+ing segments) 4t %resent, ur"an India accounts for DDQ of total 9M/; consum%tion, +ith rural India accounting for the remaining 3 Q) =o+e$er, rural India accounts for more than 0Q consum%tion in ma&or 9M/; categories such as %ersonal care, fa"ric care, and hot "e$erages) In ur"an areas, home and %ersonal care categor#, including skin care, household care and feminine h#giene, +ill kee% gro+ing at relati$el# attracti$e rates) 3ithin the foods segment, it is estimated that %rocessed foods, "aker#, and dair# are long-term gro+th categories in "oth rural and ur"an areas)*he gro+ing incline of rural and semi-ur"an folks for 9M/; %roducts +ill "e mainl# res%onsi"le for the gro+th in this sector, as manufacturers +ill ha$e to dee%en their concentration for higher sales $olumes) Ma&or ,la#ers in this sector include =industan -nile$er 6td), I*/ .Indian *o"acco /om%an#0, 5estlI India, ;/MM9 .4M-60, ?a"ur India, 4sian ,aints .India0, /ad"ur#
India, Britannia Industries, ,rocter B ;am"le =#giene and =ealth /are, Marico Industries, 5irma,/oca-/ola, ,e%si and others)4s %er the anal#sis "# 4SS8/=4M, /om%anies =industan -nile$er 6td , ?a"ur India originates half of their sales from rural India) 3hile /olgate ,almoli$e India and Marico constitutes nearl# 3EQ res%ecti$el#, ho+e$er 5estle India 6td and ;S: /onsumer dri$e 2C %er cent of sales from rural India) 4 ra%id ur"ani<ation, increase in demands, %resence of large num"er of #oung %o%ulation, a large num"er of o%%ortunities is a$aila"le in the 9M/; sector) *he 9inance Minister has %ro%osed to introduce an integrated ;oods and Ser$ice *a2 "# 4%ril 2010)*his is an e2ce%tionall# good mo$e "ecause the gro+th of consum%tion, %roduction, and em%lo#ment is directl# %ro%ortionate to reduction in indirect ta2es +hich constitute no less than 3CQ of the total cost of consumer %roducts - the highest in 4sia)) *he "ottom line is that Indian market is changing ra%idl# and is sho+ing un%recedented consumer "usiness o%%ortunit#)
MA"!
C!MPE#(#! S !) %ES#&E MA++(
Maggi instant noodles, foods ma&or 5estleMs flagshi% "rand that has dominated the Indian instant noodles market for nearl# three decades, is losing market share on a monthl# "asis to ne+er entrants such as ;la2oSmith:lineMs .;S:0 =orlicks 9oodles, =industan -nile$erMs .=-60 :norr Sou%# noodles, Big Ba<aarMs *ast# *reat, *o% Ramen and se$eral other smaller %la#ers, according to data "# market research firm 5ielsen)
*he data sho+s that MaggiMs share of instant noodles, on an all-India "asis, across ur"an markets, has sli%%ed consistentl# "et+een ?ecem"er M0H to >ul# M10) 3hile Maggi instant noodles .minus $ermicelli0 had a H0)EQ share in ?ecem"er M0H, the share dro%%ed to FD)CQ in >ul# M10 on an all-India "asis) 4 regional s%lit of the data sho+s that MaggiMs instant noodlesM $alue market share has fallen across the east, south, north and +est <ones for the same %eriod) 4nal#sts sa# +ith ne+ com%etition, MaggiMs market share is certain to get im%acted , "ut add that 5estle has the %otential to e2%and the Rs 1,300-crore instant noodles categor# @ +hich itself is gro+ing at a ra%id 1CQ annuall#) 4 detailed email sent to 5estle on *hursda# elicited no res%onse) 4%art from =-6 and ;S: +hich ha$e %ositioned their noodles as Mhealth#M snacking o%tions targeting kids and mothers, others like Indo-5issinMs *o% Ramen, /a%ital 9oodsM /hingMs Secret and /; 9oodsMs 3ai-3ai , though around for long, are ste%%ing u% marketing efforts to take ad$antage of categor# gro+th) Besides, %ri$ate "rands like Big Ba<aarMs *ast# *reat and 4dit#a Birla RetailMs 9easters are notching u% share) Mano& Menon, 9M/; anal#st at "rokerage firm
tak Securities, +rote in a re%ort earlier this monthO JMaggi faces %roduct su"stitution risk and "rands like :norr and9oodles could %otentiall# im%act its incremental gro+th) 5estle faces a challenging com%etiti$e en$ironment in culinar#)J ;S:, +hich entered the categor# in ?ecem"er last #ear, has taken a+a# share from Maggi mainl# in the South and 1ast riding on the eAuit# of =orlicks and its +ellentrenched distri"ution in the regions) ;S:Ms e2ecuti$e V,, marketing, Shu"ha&it Sen, saidO J/onsumers +ere looking for a choice in instant noodlesL com"ined +ith that, the eAuit# of =orlicks is leading to a lot of trails) *he initial res%onse to 9oodles is much higher than our e2%ectations)J 8n the other hand, =-6, +hich rolled out :norr Sou%# noodles in the South this 9e"ruar#, had to %ost%one the "randMs national launch due to ca%acit# constraints "ecause of hea$# consumer offtake) 4n =-6 s%okesman saidO J3e are $er# %leased +ith the %erformance of :norr Sou%# noodles)J ,ri$ate "rands are +hetting a%%etites of consumers too) 4ccording to ?e$endra /ha+la, "usiness head, %ri$ate "rands, 9uture grou%O J*he categor# "oundar# is set to "e re-dra+n) 9rom a snack food targeted at children, instant noodles categor# has e$ol$ed as a mainsta# meal e$en for gro+n u%s)J Mr /ha+la said *ast# *reat +as the second "iggest instant noodles "rand in its Big Ba<aar stores after Maggi) *he "rand %ackaging +as re$am%ed last #ear and 9uture %lans to roll out additional $ariants in a monthMs time taking the num"er of $ariants to nine from the e2isting three)
(%# !/-C#(!%
2(S#! ' !) MA++( @ (%/(A0
5estlI India 6td) .5I60, the Indian su"sidiar# of the glo"al 9M/; ma&or, 5estlI S4, introduced the Maggi "rand in India in 1HF2, +ith its launch of Maggi 2 Minute 5oodles, an instant noodles %roduct) 3ith the launch of Maggi noodles, 5I6 created an entirel# ne+ food categor# - instant noodles - in the Indian %ackaged food market) Because of its first-mo$er ad$antage, 5I6 successfull# managed to retain its leadershi% in the instant noodles categor# e$en until the earl# 2000s) 5I6 offered a $ariet# of culinar# %roducts such as instant noodles, sou%s, sauces and ketchu%s, cooking aids .seasonings0, etc), under the Maggi "rand .Refer to 12hi"it II for MaggiMs %roduct %ortfolio as of mid-200D0) 8f these, instant noodles had "een 5I6Ms main %roduct categor# in the culinar# segment since the launch of Maggi 2 Minute 5oodles .Maggi noodles0 in 1HF2) 8$er the #ears, Maggi noodles "ecame a %o%ular snack food %roduct in India) ?uring the 1HH0s, the sales of Maggi noodles declined, and this +as attri"uted %artl# to the gro+ing %o%ularit# of *o% Ramen , another instant noodles %roduct) In order to im%ro$e sales and attract more consumers, 5I6 changed the formulation of Maggi noodles in 1HHE) =o+e$er, this %ro$ed to "e a mistake, as consumers did not like the taste of the ne+ noodles) In March 1HHH, 5I6 reintroduced the old formulation of the noodles, after +hich the sales re$i$ed) 8$er the #ears, 5I6 also introduced se$eral other %roducts like sou%s and cooking aids under the Maggi "rand) =o+e$er, these %roducts +ere not as successful as the instant noodles)In the earl# 2000s, Maggi +as the leader in the "randed instant noodles segment, and the com%an# faced little serious com%etition in this segment) In the earl# 2000s, 5I6 started
introducing ne+ Mhealth#M %roducts in accordance +ith the 5estlI ;rou%Ms glo"al strateg# to transform itself into a health and +ellness com%an#) In March 1HHH, 5I6 reintroduced the old formulation of the noodles, after +hich the sales re$i$ed) 8$er the #ears, 5I6 also introduced se$eral other %roducts like sou%s and cooking aids under the Maggi "rand) =o+e$er, these %roducts +ere not as successful as the instant noodles) In the earl# 2000s, Maggi +as the leader in the "randed instant noodles segment, and the com%an# faced little serious com%etition in this segment) In >ul# 2001, Maggi re%laced 5escafI .5I6Ms coffee %roducts "rand0 as the com%an#Ms core "rand) 5escafI had "een 5I6Ms core "rand since 1HHF) /ommenting on the shift, /arlo ?onati .?onati0, chairman and managing director, 5I6, said, J*he focused a%%roach on 5escafI, +hich +as the com%an#Ms flagshi% "rand o$er the last fe+ #ears, has #ielded rich di$idends and +e %lan to re%licate the same in case of Maggi as +ell)J In the earl# 2000s, the 5estlI ;rou% had "een taking measures to transform itself into a Mhealth and +ellnessM com%an#) *he com%an# had also set u% ne+ research and de$elo%ment facilities +ith a $ie+ to im%ro$ing the attri"utes of the e2isting 5estlI %roducts to make them healthier, and to de$elo% ne+ health and +ellness %roducts) Since the earl# 2000s, the 5estlI ;rou% had "een introducing Mhealth and +ellness %roducts all o$er the +orld) In India, 5I6 introduced ne+ MhealthierM +eaning and milk %roducts in 200 )
In March 200C, the Maggi "rand too took to the health route +ith the launch of Vegeta"le 4tta 5oodles) 5I6 made use of the grou%Ms e2tensi$e research and de$elo%ment facilities in de$elo%ing this ne+ Mhealth#M %roduct)
MA++( @ (%/(A0
5estle India 6imited is the market leader in Indian 5oodle Market +ith itKs Maggi Brand of 5oodles +hich +as %ioneer "rand launched in 1HF3 in the %ackaged food market of India) It took the challenge and esta"lished Maggi in Indian market considered to "e conser$ati$e and t#%ical a"out food consum%tion) It a%%ro%riate reali<ation of target segment, effecti$e %ositioning and effecti$e %romotion and sales made Maggi to 5oodles in India as Sero2 it to %hotoco%ier) 5I6 had introduced sauces, ketchu%s and sou%s under Maggi "rand to rea% "enefit of "rand %o%ularit# and image and contri"ute to financial gains "# 1HH0)Maggi also "ecame successful in sauces, ketchu%s and sou%s Market in India) *hough 5I6 tried to e2tend to other read# to eat %roducts like %ickles, cooking aids and %aste, It +as unsuccessful so dum%ed those %roducts) Maggi Brand of %roducts sustained recession in 2000 and 2001 in India "# introducing econom# %ackets)
*o fulfill no$elt# needs of customers and re$itali<e Maggi 5oodles Brand 5I6 made different attem%ts "# introducing ne+ formulation to ne+ taste "ut customers resisted change and Maggi had to reintroduce Maggi 5oodles in same taste) Maggi 5oodle had
till 200C fi$e %roduct line on noodles +ith four $ariant in Maggi 2 Minutes 5oodle) In 200D in com%liance +ith 5I6 target to "e 'health and 3ellness /om%an#( Maggi re%ositioned it as health and taste food %roducts) 5I6 has also introduced +ith taste and %roduct line in Sauces and Sou% Market under Maggi to catch ne+ segment, re$itali<e "rand, com%ete +ith other %roducers and fulfill e2%ectation of customers) In 200C Maggi "rand +orth +as 3)E "illion from 1)E "illion market +orth in 1)E "illion in 2003) Maggi 5oodle is Market leader +ith around F0Q market share in 5oodlesR,asta and Maggi Sauce is market leader +ith almost 3EQ of market share in 200C in 1)F "illion market of India) :norr has taken o$er Maggi in Sou% market recentl#) In 200C Maggi +as the highest s%ender in the ,romotion and Sales in the Indian Market in the 5oodles /ategor#) Maggi is com%eting +ith =ein< Sauces and :etchu%, :noor Sou%s, :issin Sauces and :etchu%, *o% Ramen, Sunfeast ,asta 3ai 3ai and 2 ,M in corres%onding categories of %roducts and $ariants
MA++( #!/A'0
*he #ear 2003 sa+ India leading in +orld+ide Maggi sales) *he "rand has gro+n to an estimated $alue of Rs 1D0-1E0 crore and contri"utes at least F @ HQ to 5estle IndiaKs to% line) 4ll the same, some 9M/; anal#sts feel that the "rand has not done much to e2%and the noodles categor#) 1$en after 20 #ears of its launch, the si<e of the instant noodles market is #et Auite small at Rs 200 crore) But #es, the %arent com%an#, 5estle India 6imited has certainl# encouraged the "rand to enter into other culinar# %roducts) /arlo ?onati told a leading ne+s%a%er that he +ants to sell t+o and a half times of +hat he is selling toda#, in the ne2t 10 #ears)
8f course, "eing a first-mo$er - or e$en a market dominator - counts for nothing if marketers let their guard do+n) Maggi noodles, +hich "uilt itself on the taste-andcon$enience %latform through the F0s and earl# H0s, started facing the heat from Indo 5issinKs *o% Ramen "rand around 1HHC) *he latter "egan %ushing for+ard aggressi$el# on a com"ination of taste $ariants, smart audience segmentation and Shahrukh :hanKs "rand endorsement) 5estle %rom%tl# re-&igged its offering +ith a ne+ taste - +hich didnKt go do+n +ell +ith the consumer) In 1HHH, Maggi +as relaunched +ith its original taste, and sustained efforts sa+ the "rand reclaiming lost ground) Since then, the "rand has "een inno$ating constantl# to kee% share) 'Maggi ada%ted to local tastes and +ithstood com%etition o$er the #ears and has continuousl# sensitised itself to the e$ol$ing Indian consumer,( sa#s Martial Rolland, chairman and managing director, 5estle India)
MA *E#(%+ M(=
• P !/-C#S !) MA++(0
? %!!/&ES0
• MA++( 9 @ M(%-#E %!!/&ES0
MA++( 9-Minu4e %oodles is one of the largest and most lo$ed food "rands that defines Instant 5oodles in India)
/ontinuing to s%read &o# as it has done for the last 2C #ears, #our fa$orite M4;;I 5oodles is as tast# as e$er and e$en %ro$ides essential nutrients for all stage of #our life) 3ith the goodness of ,rotein and /alcium, M4;;I 5oodles is a$aila"le in #oma4o and Curr83 delecta"le fla$ors @ Masala, Chic1en,
MA++( 9- M(%-#E %!!/&ES
• MA++( >E+E#A.&E A##A %!!/&ES0
4n offering that e2em%lifies T*aste Bhi =ealth BhiK, M4;;I Vegeta"le 4tta 5oodles is tast# "ecause it is loaded +ith e$er#oneKs fa$ourite M4;;I
TMasalaK and health# "ecause it no+ has more real $egeta"les and is %acked +ith the %o+er of fi"er)
MA++( >E+E#A.&E A##A %!!/&ES
• MA++( C-PPA MA%(A0
1ach offering of M4;;I 5oodles has "een de$elo%ed kee%ing in mind the Indian %alate and +hat #ou like) Since in toda#Ks fast-%aced "us# life, multitasking is a realit#, #ou need something that fits +ith #our rushed lifest#le @ a %roduct +hich is tast# and health#, is con$enient to %re%are and eat and also satiates #our hunger ) M4;;I /u%%a Mania is a com"ination of all the a"o$eU In an eas# to carr# on-the-go /u% format, M4;;I /u%%a Mania comes in t+o mouth +atering $ariants @ Masala 7oU 4nd /hill# /ho+ 7oU ,acked +ith real $egeta"les and the goodness of /alcium, 6us4 add garam AaaniB to the 5oodles and $oilaU 4 cu%ful of delicious M4;;I /u%%a Mania is read# for #ou to carr8 on 6aaniC
MA++( C-PPA MA%(A
? S!-PS0
• MA++( 2EA' S!-PS0
M4;;I +as the %ioneer of Instant Sou%s in India)
*he ne+ M4;;I =ealth# Sou%s ha$e "een carefull# %re%ared through the Research and ?e$elo%ment efforts of 5estlI ;rou% and are e$en more
delicious, Auick to %re%are, con$enient and health#) #as4e .hi, 2eal4h .hiC3 M4;;I =ealth# Sou%s contain real $egeta"les, are lo+ fat, lo+ cholesterol and free from s#nthetic colours and added MS
*hese su%erior health# sou%s are no+ a$aila"le in an enhanced range of 12 delicious $ariantsO?
=ealth# St#le Rich *omato Mi2ed Vegeta"le /ream# /hicken Masala 5oodles
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/hinese St#le =ot B Sour Vegeta"le S+eet /orn Vegeta"le S+eet /orn /hicken 8riental *hai 5oodles
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/hef St#le /ream of Mushroom
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*ang# *omato Vegeta"le S+eet n Sour *omato 5oodles ,alak /orn
• SA%"EE%( MA++( 2EA' C-P0
*raditional reci%es for good health, made +ith ingredients time-tested for their goodness, like 4mla, S%inach, ?al and tomato) 4$aila"le in an eas# to use cu%-&ust add hot +ater and treat #ourself to a cu% foll of good life)
MA++( S!-PS
? SA-CES0
• MA++( SA-CES0
M4;;I Sauces ha$e "een an integral %art of the Indian consumersM household for decades no+) *o cater to the di$erse Indian %alate, M4;;I has a host of $ariants likeO *he Auintessential Rich *omato :etchu% and Rich *omato Sauce) *he uniAue =ot B S+eet *omato /hilli Sauce and 8riental /hilli ;arlic sauce) *he Indian st#le *omato /hat%at Sauce
6i%smacking tastes and $i"rant %ackaging make M4;;I Sauces true to its slogan - (4Ds differen4C
M4;;I S4-/1S
• MA++( P(C2*!!0
,ichkoo is a small do# %ack +hich makes M4;;I *omato ketchu% afforda"le to a host of ne+ consumers) 4nd no+, M4;;I makes the delight JBiggerM "# introducing a Bada ,ichkoo) 4 large *omato :etchu% do# %ack +hich ensures that the fun goes on and on) ItMs endearing name, %ackaging and great taste e$oke a resounding reaction) J5e+ M4;;I ,ichkoo - (4Ds differen4CJ
MA++( P(C2*!!
? PAS#A0 • MA++( PAEE#A0
*o further delight the consumer, M4;;I no+ launches another range of %roducts for tast# and health# eating @ 5-*RI-6I/I8-S ,4VV*4) *his Auick cooking %asta can "e con$enientl# %re%ared in &ust F minu4es, at
an# time of the da# that #ou +ant a tast# and health# light meal) M4;;I 5-*RI-6I/I8-S ,4VV*4 is made from 100Q Su&i, and is a source of ,rotein and 9i"re) It has "eing launched in t+o delicious fla$ours GMasala PenneH and GCheese MacaroniH3
MA++( PAEE#A
? C!!*(%+ A(/S0 • MA++( MA+(C C-.ES0
M4;;I Magic /u"es enhance the taste of #our e$er#da# dish, making it a s%ecial for the entire famil#) 4$aila"le in t+o $ariants @ Vegetarian Masala B /hicken @ M4;;I Magic /u"es are an ideal seasoning for a $ariet# of dishes such as Veg Bir#ani, /hicken Bir#ani, /hicken /urr# etc) so eas# to useU 4nd itKs
•
MA++( .2-%A MASA&A0
M4;;I is re$olutioni<ing the Indian kitchen +ith its latest offering @ M4;;I Bhuna Masala) It is an# motherKs all# for con$enientl# cooking great tasting, +holesome food for the famil# e$er#da#) Based on intensi$e research and in-de%th understanding of Indian food ha"its and cooking %ractices, M4;;I Bhuna Masala allo+s the house+ife to %re%are a large $ariet# of tast# dishes +ithout the hassle of cho%%ing and fr#ing) *he dishes retain that Ts%ecial touchK of the house+ife as she adds her o+n s%icesW)) Standing strong on its %romise of '*aste Bhi, =ealth Bhi(, M4;;I Bhuna Masala comes +ith Ino added Areser5a4i5esI, Icon4ains onl8 : 4bsAB of oilI and I4as4es 6us4 li1e homemade3I ;i$es #ou a %erfect dish in three sim%le ste%sO
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8%en the %ack B %our contents in the %an 4dd $egeta"lesR%aneerRchickenRra&ma etc) 4dd s%ices and cook
M4;;I :itchen Secrets Bhuna Masala comes in t+o $ariantsO.huna Masala for +ra58 /ishes- a read#- mi2 of 8nion, *omato, ;inger and ;arlic fried in refined oil) .-se it to make tast# dishes like Vaikedaar /hicken, Ra&ma,
lha%uri Mutton, 4loo ,otol etc)0.huna Masala for >ege4ables and /al- a read#- mi2 of 8nion and *omato, fried in refined oil) .-se it to make tast# dishes like ,alak corn, ?al *adka, Bhindi Masala, -rlai Roast etc)0
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MA++( C!C!%-# M(&* P !/-C#0 3ith M4;;I /oconut Milk ,o+der #ou can make rich coconut milk Auickl# and con$enientl# "# sim%l# adding +arm +ater) It is manufactured from the "est Sri 6ankan coconuts) 1as# to use and ideal for curries, rice %re%arations, cakes, cookies and "lender drinks) M4;;I /oconut Milk ,o+der gi$es #ou the taste of real coconuts and has no added %reser$ati$es)
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MA++( P(EEA MAEEA0 5o+ #ou do not need to order %i<<as from outside and +ait for 30 minutes) 3ith M4;;I ,i<<a Ma<<a #ou can %re%are delicious %i<<as +ithin minutes) 7ou can also ha$e the ma<<a of the %i<<a on other items like naans, footlongs and of course the most easil# a$aila"le of them all @ "read slices) 4$aila"le in a 300 gm &ar, each "ottle is good for C %i<<a "ases)
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MA++( MASA&A @ AE @ MA++(0 *he first e$er fortified taste enhancer that can "e used across different cuisines in India) It is not a sim%le masala, "ut is uniAue in that it efficientl# enhances the taste inherent in the food ingredients alread# %resent) It is s%ecificall# fortified +ith Iron, Vitamin 4 B Iodine that are kno+n to "e +ides%read deficiencies in India) 1$er#da# food no+ "ecomes delicious B healthier in 2 sim%le ste%sO
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/ook ?ish as #ou normall# do 4dd 1 sachet 2-3 minutes "efore taking off the flame and stir +ell)
C!!*(%+ A(/S
• P (CE !) MA++(0
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/onsidering the %rice %oints in the market for Maggi, it should continue to %osition itself in the 'snack( categor# itself, since fe+ +ould "e +illing to acce%t it as a meal)
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*he com%an# is taking no chances and is e2tending its distri"ution reach to smaller to+ns and cities) Maggi ha%%ens to "e 5estlIKs most +idel# distri"uted "rand in the countr#) *hrough inde%endent channels, it reaches those $illages +here the com%an# has no %resence, according to =egde) *his is also the time that MaggiKs $alue-for-mone# %ack %riced at Rs C is e2%ected to come hand#) .*he regular %ack comes for Rs 10)0
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4fforda"le "# all income grou%s)
• P&ACEJ /(S# (.-#(!%KL
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*he distri"ution net+ork is +ell s%read)
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1asil# a$aila"le in all retail stores)
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?istri"ution channel @ ,R8?-/1R - ?IS*RIB-*8R /85S-M1R
R1*4I61R @
E=AMP&E !) MA++( P&ACE J /(S# (.-#(!%K
• P !M!#(!% !) MA++(0
• • •
*he# %romote their %roduct $er# effecti$el# through tele$ision) *he# ha$e a%%lied the strateg# of "rand e2tension) *he# also s%onsor $arious cooker# sho+s to %romote alternate usage of %roducts)
• • • •
*he# also use strateg# of free %roduct sam%les to %romote it) /ele"rit# endorsements) 1g) >a$ed >afferi ,R8M8*I85 6ess %romoted as com%ared to maggi) 5o %articular cele"rit# endorsement)
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*he utter confusion regarding the long-term strateg# for :issan "rand +as $isi"le through the e2%eriments that +ere conducted on this "rand "# =ll)
•
But +ith a "rand +hich had a tremendous eAuit# during the late nineties and earl# 2000, =-6 had +eird %lans) 8ne of the ma&or casualties of MS BangaMs ,o+er "rand strateg# +as :issan) ?uring the earl# 2000, the "rand :issan +as re"randed as :issan 4nna%urna) :issan 4nna%urna +as marketing not &ams and sAuashes "# 4tta, salt and other sta%le foods) 6ater 4nna%urna and :issan +as s%lited into t+o se%arate "rands , one concentrating on sta%le foods and other on %rocessed foods) *his migration strateg# %ro$ed to "e $er# costl# for "oth :issan and 4nna%urna "rand) :issan +as s#non#mous +ith >ams and SAuashes during its initial #ears) :issan :etchu% +as a market leader in ketchu% segment "ut these e2%eriments and m#o%ic strategies %ushed the "rand "ehind the focused and aggressi$e Maggi)
•
So all through the %eriod 2001-200C, :issan +as in a stick# +icket) But no+ according to re%orts, the "rand mandarins of =-6 is no+ clear a"out :issan as a "rand for %rocessed food like >ams , ketchu%s and like, *hat change is $isi"le in the recent cam%aign of :issan +hich takes a uniAue $ie+ of :etchu%) *aking the tagline J 4ao "ana#e %akode "ehtarJ translated to J Making ,akode taste "etterJ)
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In these series of ads, the "rand %la#s a second fiddle to the main snack) *he "rand takes the %ositioning of a J;reat 4ccom%animent J
Maggi has faced lot of hurdles in its &ourne# in India) *he "asic %ro"lem the "rand faced is the Indian ,s#che) Indian ,alate is not too ad$enturous in terms of tr#ing ne+ tastes) *hat ma# "e the reason +h# +e are still stuck +ith ?al) So a ne+ %roduct +ith a ne+ taste that too from a different culture +ill ha$e difficult# in a%%ealing to Indian market) Initiall# 5estle tried to %osition the 5oodles in the %latform of con$enience targeting the +orking +omen) But it found that the sales are not %icking u% des%ite hea$#
%romotion )Research then sho+ed that :ids +ere the largest consumers of the "rand) Realising this, 5estle re%ositioned the "rand to+ards the kids using sales %romotions and smart ad$ertising)5o+ Indians are the largest eaters of Maggi 5oodles in the +orld) Maggi 5oodles is a marketing success stor#)
?uring 1HHE Maggi changed its formulation) It +as during that time that Indo 5issin - a >a%anese com%an# launched its 5oodles "rand J*o% RamenJ +ith lot of %romotion and +ith SR: endorsing the "rand) *o%Ramen ga$e Maggi a run for its mone#) *he change in taste of Maggi +as a mistake) *he consumers re&ected the ne+ taste of Maggi) 4nd in 1HHH Maggi relaunched 5oodles +ith the original taste) 5estle +as read# to acce%t the consumers $erdict and it %aid off handsomel#) *o% Ramen could not sustain the gro+th it had for long)
MaggiMs cam%aigns +ere re$ol$ed around its Jcon$enience to make and good to eat J Aualities) Read# in J 2 minutes J +as a %ro%osition that +as +ell recei$ed "# the market) In 200C 5estle made a $er# smart mo$e) It kne+ that although kids lo$e noodles, the %arents +ere "othered a"out the health as%ect of 5oodles +hich +as made of Maida) =ence Maggi launched Maggi 4tta 5oodles +ith the "aseline J taste "hi health "hiJ )Re%orts suggest that after 10 months of the launch , the %roduct has "een +ell recei$ed "# Indian consumers) Maggi noodles is an e2am%le of a "rand that kno+s the customer and +illing to learn from the mistakes)
Maggi also tried to le$erage the success of the 5oodles to other food %roducts like sauces , tastemakers , sou%s etc) Maggi sauces needs s%ecial mention "ecause it is another success stor#) Maggi ha$e a market share of CQ in the 1F0crore ketchu% market in India) Maggi le$eraged the "rand eAuit# $er# effecti$el#) *he %roduct Aualit# +as good and the communication +as e2cellent) *he "rand +as %ositioned as a J?ifferentJ sauce +ith the "aseline J Its differentJ)
/ustomers +as intrigued as to +hat is different a"out the "rand and +as curious to tr# the sauce . ma# "e sur%rised to find nothing different,"ut that is marketing hone#U0) *he ads featuring >a$ed and ,anka& ka%oor +as su%er" and funn#) It +as created "# >3*) *he ne+ cam%aigns are handled "# ,u"licis and the "aseline has "een changed to J en&o# the differenceJ) *here +as no need to change the "aseline,ma# "e ad agencies ha$e an ego %ro"lem in acce%ting the creati$it# of another agenc#) So agencies change the "aseline e$en at the cost of the "rand)In this case e$en though the ne+ "aseline J en&o# the differenceJ +as not $er# different from the old one, +as it a change for the sake of change X I strongl# feel that the "rand managers should take the o+nershi% of the "rand and the +a# it is communicated) If it is left to agenc# alone, e$er# time the agenc# changes, the communication changes) Maggi after its long and tough &ourne# is en&o#ing its +ell deser$ed success)
MA++( SA-CE A/ @ "A>E/ "A))E '
MA *E#(%+ M P !M!#(!%A& S#A#E+(ES
• P !/-C# &()E C'C&E !) MA++(0
? (%# !/-C#(!%0
• *he ,roduct launched kee%ing in mind the +orking +omen and childrens)
• • • •
It +as the %ioneer in instant noodle market) ?istri"ution Stage ,R8?-/1R @ ?IS*RIB-*8RS @ R1*4I61RS @ /85S-M1RS) ,RI/I5;O *he initial %ricing strateg# +as lo+ %ricing strateg# to make %roduct afforda"le) ,R8M8*I85 ,romoted +ith tag line 'B4S 2 MI5-*1)( ,romotion done "# gi$ing gift on em%t# %acks) ,romotion in school)
? + !<#20
• • •
Increased 5o) of sales) 4cce%ted as read# to eat food) 1n&o#ed C0Q market share $alued at 2C0 crores)
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,rofits "egin to rise) Maggi "ecome the 5o) 1 "rand in Instant noodles market) ,RI/I5;O ,rices +ere ke%t normal) ,R8?-/*O 5o an# ne+ changes ,R8M8*I85O ,romoted +ith the tag line ';ood to eat fast to cook(
? MA#- (#'0
• • • • • • • •
?eclining sales gro+th) Saturated market) 12tending %roduct line) 6arge %romotional offers) 1ntrance of ne+ %la#ers - ?uring the %eriod of H0Ks M4;;I faces the tough com%etition from *8, R4M15) ,R8?-/*O M4;;I introduced +ide $ariet# of %roducts like ?al atta noodles, chicken maggi, maggi cu%%a mania) ,RI/1O Maggi still comes in $er# afforda"le %rices starting from Rs) C,the# reduced the Auantit# instead of increasing %rice) ?IS*RIB-*I85O ?istri"ution "ecome more intensi$e) Various intensi$e %rograms for encouraging %roducts o$er other com%etitors)
? /EC&(%E0
• • • •
Sales sa+ a decline in 1HH0Ks @ 9ormulation changed from fried "ase to air dried "ase) 5e+ %roduct launched "ut failed- ?al atta noodles sam"ar fla$or *ough com%etition from *o% Ramen) 9ailure of other %roducts like Sou%s, /ooking aids etc)
P !/-C# &()E C'C&E
• S# A#E+(ES A/!P#E/ .' %ES#&E0
? %es4le manages 4o crea4e ne7 Aroduc4 ca4egories under 4he brand name of $MA++(,3 #he8 adoA4ed 4he follo7ing s4ra4egies0
• Maggi introduced the magi sauce categor# and %i<<a $ariant) It is al+a#s easier to %romote a ne+ %roduct under the name of the esta"lished "rand as the e2%enditure and recognition time is less) • 5estle also used the cultural "ase marketing in India as kno+ing the fact that Indian %eo%le like Rice, the# introduced Maggi Rice 5oodles Mania) • 5estle +as a"le to successfull# use the um"rella "randing for Maggi) *he# introduced man# $ariant under the "rand name of Maggi) B# doing so, *he# +ere successful in making the %roduct %o%ular) • Maggi also successfull# a"le to %osition its noodles in the minds of the consumers as the fast food item) • 8n the other hand the# also introduced some categories +hich are ha$ing the com%lete diet in the form of noodles) *he# said that these contain some %rotein and calorie le$el +hich is must for the children) B# doing the emotional marketing the# +ere successfull# a"le to %romote these %roductsO M4;;I Vegeta"le atta noodles, ?al atta noodles, Rice noodle mania, =ealth# sou% etc)
• S# A#E+(ES A/!P#E/ .' %ES#&E MA++(0
?
S4rong Cus4omer
ela4ions0 *he cam%aign designed "# 5estlI for
MaggiKs sil$er &u"ilee ho%es to +ork on the "randKs strong consumer connect through tele$ision, the Internet and %rint) *he &ingle gets a %rominent %la# in the tele$ision cam%aign) 5estlI, IndiaKs largest food %roducts com%an#, has decided not to litter the sk# +ith hoardings on the occasion) Instead, the ads +ill %la# on nostalgia) /onsumers +ho first sam%led the "rand as kids no+ run households) *he cam%aign seeks to strengthen the association) *hus, customers +ill "e in$ited to share their 'Maggi moments( +ith the com%an#) If the com%an# likes the +a# #ou %re%are Maggi, #ou could find #our %hoto on Maggi %acks) 4 ne+ +e"site called +++)meandmerimaggi)com is also in the +orks)
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+ood Pac1aging and S4rong /ealer >endor ela4ions0 /on$enience
+as the uniAue selling %ro%osition of Maggi +hen it +as launched 2C #ears ago) 9or the first time, consumers got something that +as h#gienicall# %acked and con$enient to %re%are) It +as also the first fusion e2%eriment on food in India)
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Con4inuous Arocess inno5a4ion0 Instant noodles +as an entirel# ne+
categor# in the countr#, "ut it +as gi$en an Indian t+ist) Maggi came in four $ariantsOMasala, chicken, s+eet B sour and ca%sicum) 8f these, onl# t+o ha$e sur$i$ed Y masala and chicken +hich sells largel# in the eastern states)Masala continues to "e the flagshi% fla$our) In the da#s that follo+ed, it e2%erimented +ith more $ariants, like a garlic- and onion-free one for ;u&arat)Some of these still e2ist, others +ere discontinued)
*he turning %oint came in 200C, +hen 5estlI came out +ith Maggi atta .+hole-+heat flour0 instant noodles) 4ll o$er the countr#, atta is considered healthier than maida or refined flour +hich the com%an# +as using from da# one)
*his hel%ed the com%an# take the health %latform, though 5estlI ;eneral Manager .food "usiness0 Shi$ani =egde insists that the %roduct ne$er ran the danger of "eing classified &unk food) It +as then that it added the tagline, health "hi, taste "hi .health as +ell as taste0)
?
eAosi4ioning as a heal4hier snac10 'It is no longer an as%irational
%roduct for an# socio-economic categor# of consumers,( sa#s =egde *hat +as also the time +hen 5estlI +as re%ositioning itself +orld+ide as a health and +ellness com%an#) 4t the grassroots le$el, Maggi started associating +ith Aui< contests and other such e$ents connected to mental and %h#sical +ell"eing) *his %ositioning ga$e 5estlI the %latform to launch more %roducts under the Maggi "rand) It alread# had Maggi sou%s, sauces and coconut milk in the market, "ut gi$en the strong eAuit# of the "rand, 5estlI could no+ e2tend it to ne+er categories) *hus, it recentl# came out +ith fried masala %aste) In 200F, t+o "rand e2tensions Y Maggi Bhuna Masala and Maggi /u%%a Mania
Instant 5oodles )
?
Price (ncen4i5es0 *he com%an# is taking no chances and is e2tending its
distri"ution reach to smaller to+ns and cities) Maggi ha%%ens to "e 5estlIKs most +idel# distri"uted "rand in the countr#) *hrough inde%endent channels, it reaches those $illages +here the com%an# has no %resence, according to =egde) *his is also the time that MaggiKs $alue-for-mone# %ack %riced at Rs C is e2%ected to come hand#) .*he regular %ack comes for Rs 10)0
?
CaA4uring %e7 Cus4omer .ase 0 Maggi realised that one of the reasons
for a lo+ market share in ;u&arat +as that most of gu&aratis do not eat garlic and 8nions so for ;u&arat Maggi has come u% +ith a s%ecial %roduct +hich is de$oid of onions and garlic and marketed it as >ain Maggi) *his hel%ed them gain a com%letel# unconAuered market of >ain 5oodle eaters)
? Maggi 4urns 9FL %es4le comes uA 7i4h ne7 camAaign
5estle India is out +ith a ne+ marketing dri$e to mark the 2Cth anni$ersar# this #ear of its instant 5oodles "rand, Maggi /alled Me B Meri Maggi, the cam%aign is cele"rating the consumerKs "ond +ith Maggi) *he com%an# is doing'3D0 degree acti$ation( across tele$ision, %rint and the internet, "eside on-ground acti$ities) 5estle has also launched an interacti$e +e"site for the consumers,+++)meandmeri)in *he %ackaging has "een t+eaked to accommodate the %ictures of consumers +hose entries the /om%an# chooses) 'If a consumer has a stor# to tell a"out Maggi +ill %ut him or her on the ,ackaging, *V or %rint,(
• MA++(HS . A%/ E=#E%S(!%0
In 1HHF, 5estle launched MaggiKs first "rand e2tension, Maggi sou%) 4t this stage, *here +as no organi<ed %ackaged sou% market in India) 5estle %lanned to create a market for %ackaged sou% as it felt the categor# had a lot of %otential) =o+e$er, according to anal#st, the com%an# had introduced sou%s onl# to cash in on the MaggiKs "rand name, and +as ne$er $er# serious a"out the segment) In 1HH3, 'S+eet Maggi(, the first $ariant of Maggi noddles +as launched) *he com%an# su%%orted the launch +ith a huge ad$ertisement outla# that amounted to ECQ of the total #earl# e2%enditure on the Maggi "rand) =o+e$er, the %roduct failed to generate the desired sales $olume and 5estle +as forced to +ithdra+ it) 4t the end of the #ear, Maggi noodles +as generating sales $olume of around C000 tonns and remained a loss making %ro%osition for 5estle)
*o "oost sales, 5estle decided to reduce the %rice of Maggi noodles) *his +as made %ossi"le "# using thinner and chea%eer %ackaging material, the com%an# also introduced 'mone# sa$er multi %ackes( in the form of 2-in-1 %ack and -in-1 %acks) 4s a result $olume increases %henomenall# to HE00 tonnes in 1HH and further to 13000 tonnes in 1HHC) MaggiKs eu%horoia +as, ho+e$er, short li$ed, as sales stagnated in 1HHC at the %re$ious #ears le$el) 3ith sou% "usiness "eing threatned by a new entrant ':norr sou%s( launched in 1HHC, offering 10 fla$ors against MaggiKs started rethinking its strategies to+ards the sou% market) In order to stretch MaggiKs "rand to include Indian ethenic foods the com%an# tied u% +ith a ,une "ased chordia foods to launch %ickles under the #ear 1HHC) *he com%an# also tied u% +ith Indian foods fermentation .I990, a /hennai "ased food com%an# to market %o%ular south Indian food %re%aration such as sam"her, dosa, $ada and s%ices in consumer %acks in ?ec 1HHC) *he com%an# re%ortedl# sa+ a lot of unta""ed %otential in the market for read# to use south Indian market) In 1HHD, %roducts from these t+o $entures recei$ed luke+arm res%onse from the marketL sales +ere rather %oor in the regions in +hich the# +ere aunched) 4nal#sts attri"uted the failure of these Maggi e2tensions to the fact that 5estlI seemed to "e %articularl# "ad at dealing +ith traditional Indian %roduct categories) Maggi noodles %erformed "adl# in 1HHD) ?es%ite slo+ sales in the %re$ious t+o #ears, 5estlI had set a sales target of 2C,000 tonnes for the #ear) =o+e$er, Maggi couldnKt cross e$en 1 ,000 tonnes) 4dding to the com%an# +oes +as the failure of Maggi *oniteKs S%ecial, a range of cooking sauces aimed at %ro$iding Trestaurant-like-tasteK to food cooked at home) *he range included offerings such as Butter /hicken gra$# and tomato sauce for %i<<as) -nderstanding these failures, and "uo#ed "# the fact that the Maggi "rand finall# "roke e$en in 1HHE, 5estlI continued to e2%lore ne+ o%tions for le$eraging on the "rand eAuit# of Maggi noodles) *he com%an# reali<ed that the kids +ho had gro+n u% on Maggi noodles had "ecome teenagers "# the late 1HH0s) 4s the# associated the the com%an#
%roduct +ith their childhood, the# seemed to "e mo$ing a+a# from it) *o lure "ack these customers and to e2%lore ne+ %roduct a$enues, 5estlI launched TMaggi MacaroniK in >ul# 1HHE) 4ccording to anal#sts, Maggi Macaroni +as launched %artl# to deal +ith the gro+ing %o%ularit# of com%eting noodles "rand *o% Ramen) Maggi Macaroni +as made a$aila"le in three fla$ors, *omato, /hicken, and Masala) *he com%an# e2%ected to re%eat the success of Maggi noodles +ith Maggi Macaroni) 4s +ith most of its %roduct launches, Maggi MacaroniKs launch +as "acked "# a multi-media ad$ertisement cam%aign including radio, tele$ision, outdoors and %rint media +ith the tagline, T*um Ro< Ba"#) *he %roductKs %ricing, ho+e$er, %ro$ed to "e a ma&or hurdle) 4 EC-gm Maggi Macaroni %ack +as %riced at Rs 11, +hile a 100-gm noodles %ack +as a$aila"le at Rs H) 4ccording to anal#sts, 5estlI failed to &ustif# this %rice-$alue anomal# to customers, +ho failed to see an# noted $alue addition in Maggi Macaroni .%ackaging and fla$or $ariants +ere similar to those of Maggi noodles0) In addition, customers failed to see an# significant difference "et+een Maggi Macaroni and the much chea%er macaroni that +as sold "# the unorgani<ed sector %la#ers) *he "iggest %ro"lem ho+e$er +as the taste of the ne+ %roduct) Since macaroni is thicker than noodles, Maggi Macaroni did not a"sor" the tastemaker +ell and conseAuentl# did not taste $er# good) *he interest generated "# the no$elt# of the %roduct soon died out and sales "egan ta%ering off) 1$entuall#, 5estlI had to +ithdra+ Maggi Macaroni com%letel# from the market) 5estlI had not e$en reco$ered from MacaroniKs dismal %erformance, +hen it learnt to its horror that :norr had dethroned Maggi as the leader in the sou% segment .end of 1HHE0) *he onl# sa$ing grace for Maggi seemed to its ketchu%s and sauces, +hich +ere turning out to the TrareK successful e2tensions of Maggi) *hese %roducts +ere su%%orted "# a %o%ular ad$ertisement cam%aign for the Maggi =ot B S+eet sauce "rand) *hese humorous ad$ertisements, featuring actors ,anka& :a%oor and >a$ed >afri, used the tagline, TItKs different)K =o+e$er, during mid-1HHE, =66 "egan %romoting its :issan range of sauces aggressi$el# and launched $arious inno$ati$e $ariants in the categor#)
5estlI res%onded +ith a higher thrust on ad$ertising and different si<e %acks at different %rice %oints) *hough :issan gained market share o$er the ne2t fe+ #ears, Maggi +as a"le to hold on to its o+n market share) Mean+hile the o%erational costs of Maggi noodles had increased considera"l#, forcing the com%an# to increase the retail %rice) B# earl# 1HHE, the %rice of a single %ack had reached Rs 10) Volumes +ere still languishing "et+een 13,000- 1 ,000 tonnes)
• P (C(%+ A%/ P !/-C# /E>E&!PME%#0
It +as at this %oint in time that 5estlI decided to change the formulation of Maggi noodles) *he %ur%ose +as not onl# to infuse Tfresh lifeK into the "rand, "ut also to sa$e mone# through this ne+ formulation) *he com%an# used ne+ noodle-%rocessing technolog#, so that it could air-dr# instead of oil-fr# the noodles) *he tastemakerKs manufacturing %rocess +as also altered) 4s a result of the a"o$e initiati$es, costs re%ortedl# came do+n "# 12-1 Q) *o cook the ne+ %roduct, consumers had to add t+o cu%s of +ater instead of one-and-a-half cu%s) *he taste of the noodles +as significantl# different from +hat it used to "e) *he customer "acklash that follo+ed the launch of the ne+ noodles took 5estlI "# sur%rise) 3ith $olumes declining and customer com%laints increasing, the com%an# "egan to +ork on %lans to relaunch Told MaggiK to +in "ack customers) In addition, in 1HHF, 5estlI "egan +orking out a strateg# to regain MaggiKs %osition in the sou% segment) *o counter the :norr threat, the com%an# relaunched Maggi sou%s under the TMaggi RichK "rand in Ma# 1HHF) *he sou%s +ere not onl# thicker in consistenc# than those %roduced earlier, the %ricing +as also ke%t com%etiti$e and the %ackaging +as made much more attracti$e) =o+e$er, :norr took 5estlI "# sur%rise "# launching one-ser$ing sou% sachets %riced as lo+ as Rs ) =66 too
launched t+o-ser$ing sachets of :issan sou% %riced at Rs E) 4s Maggi did not ha$e an# offerings in this %rice-range, it lost a huge %ortion of its market share to :norr) *he relaunch %rom%ted market o"ser$ers to com%are 5estlIKs mo$e +ith -S soft drinks ma&or /oca-/olaKs T5e+ /okeK fiasco) =o+e$er, the com%an# disagreed, 'ItKs a hard-C nosed strateg#, that mi2es nostalgia +ith the consumerKs $oiced %reference for the %roduct it has "een "red and rought u% on) *he reintroduction is 5estlIKs ackno+ledgement of the lo#alt# of the Indian mother and the child to the original %roduct)( B# Ma# 1HHH, 5estlIKs decision to "ring "ack the Told MaggiK seemed to ha$e %aid off) *+o months after the relaunch, the monthl# a$erage sales of Maggi noodles n the northern region rose C0Q in com%arison to the %re$ious #ear) In >ul# 1HHH, TMaggiK the "rand, +as %romoted as the "iggest "rand in 5estlIKs %ortfolio of "rands in India, o$ertaking "rands such as 5estum and /erelac) 5estlI "elie$ed that Maggi had immense %otential as it +as a $er# Tfle2i"leK "rand under +hich regional $ariants could "e introduced to meet $arious market needs) /om%an# sources claimed that +ith reasona"le %rice %oints and inno$ati$e %roducts, Maggi could emerge as a to% "rand and a ma&or gro+th dri$er for the com%an#) *o further su%%ort the "rand, 5estlI carried out $arious %romotional acti$ities as +ell) *hese included the 4ugust 1HHH T9un-?oo<K cam%aign and >ungle >ack%ot cam%aigns) D 4s a result of the a"o$e initiati$es, 5estlI claimed to ha$e cornered an F1Q market share of the 20,000 tonnes noodles market "# the end of 1HHH) 5estlI sources claimed that Maggi noodles outsold the com%etition four times o$er and that more than four Maggi noodle cakes +ere consumed e$er# second in the countr#)
• MA *E# PE%E# A#(!% S# A#E+'0
Maggi started +ith %romotional cam%aigns in the school to see the reaction of children after eating Maggi) • • • • Started their ad$ertising straight focusing on kids) Introduced ne+ %roducts like atta noodles dal atta noodles cu%%a mania) ,roducts are made a$aila"le in different %ackages like C0,100,200, 00 ;ms) :ee% on conducting market research to understand changes in market)
*hough Maggi has "een successful e$er# time, there +ere times +hen it faced challenges) Some of these areO • Sales sa+ decline in 1HH0O *he /om%an# sa+ a decline in the sales in 1HH0) 3hen the com%an# tried to find out +hat the reason +as, the# came to kno+ that there +as some thing +rong +ith the formula that s%oiled the taste) So the formula +as changed from fried "ase to oiled dried "ase) • /om%etition increased in noodle segmentO 3hen Maggi +as en&o#ing "eing the onl# noodle offering "# an# com%an# *o% ramen entered the market as a com%etition) *his +as a "ig challenge for Maggi) *hough *o% Ramen couldnKt do +ell in India) • 5e+ %roduct launched in market "ut failed- 5estle decided to e2%and its offerings "# offering ?al atta noodles B Sam"har fla$or noodles) But these %roducts +ere not +elcomed "# the %eo%le the $er# s%ecial taste of Maggi +as still ruling the consumer) • Maggi launched some ne+ %roductsO :etchu%s, Sou%s, *aste makers etc) "ut the# +ere not successful)
!."EC#(>ES M
ESEA C2 ME#2!/!&!+'
Gualitati$e method +ill "e used in the stud#) Gualitati$e method stri$es on understanding data through gi$ing em%hasis on determining %eo%le +ords and actions) *his %ro&ect titled as mentioned in$ol$es the stud# of Marketing B %romotional strateg# of 5estle Maggi is com%leted "# collecting data from the "elo+ mentioned t+o sources-
Sources of /a4a collec4ion
? Primar8 source *he %rimar# data used in this re%ort include the Auestionnaire in +hich the consumerRcustomer data is collected regarding their $ie+s to+ards nestle maggi) ? Secondar8 source *his +ill include data collection from $arious +e"sites and "ooks) It also includes data from com%an# and other referral sites and sources)
&(M(#A#(!% !) #2E
EP! #
1$er# attem%t +ill "e taken to o"tain the error free and meaningful result "ut as nothing in this +orld is 100Q %erfect I "elie$e that there +ill still the chance for error on account of follo+ing limitations.10 Res%ondentKs una$aila"ilit#) .20 *ime %ressure and fatigue on the %art of res%ondents and inter$ie+er) .30 /ourtes# "ias) . 0 *he %ro&ect undertaken needs a lot of secondar# data so the a$aila"ilit# and %recision of this data forms the ma&or limitation as the "iasness has to "e minimi<ed) .C0 *he results and conclusions of the %ro&ect cannot "e generali<ed in all area of an organi<ation) .D0 *here +as a shortage of time and resources for the functioning the o%eration) .E0 *he data in this stud# is ma2imum taken from the %rimar# sources )so, these data is not full# e2act) .F0 *here +as a hurdle in the collection of data from %rimar# sources i)e) risk# as +ell as incom%lete)
C2AP#E - ; A%A&'S(S M (%#E P E#A#(!%
N 93 <ha4 comes firs4 in 8our mind 7hen 8ou hear 4he 7ord MA++(O
5oodle 9ast food Snacks 5one of these
3C 10 C 0
(n4erAre4a4ion
8ut of C0 around 3C agreed that +hen the# hear the +ord M4;;I first noodles comes in their mind B 10Q said fast food B other said snacks)
N ;3 <ha4 is 4he brand 4ha4 comes 4o 8our mind 7hen 7e sa8 4he 7ord noodlesO
Maggi #i%%ie *o%ramen noodles 4nil noodles
3F 10 2 0
(n4erAre4a4ion
8ut of C0 a%%ro2 3F Q of %eo%le said +hen the# talk a"out noodle maggie comes first in their mind B 10Q said #i%%ie noodle comes in their mind B other said to%ramen)
N 43 an1 4he follo7ing Maggi Aroduc4s 73r34 frePuenc8 of Aurchase 7i4h being 4he highes4 ran1
5oodles :etchu% Sou% %ickles cu"es
1 rank 2 rank rank C rank 3 rank
(n4erAre4a4ion
5o of customer gi$en rank 1 to the noodles in %urchase of maggi %roduct, rank 2 to the ketchu%, rank 3 to the cu"es, rank maggi %roduct) to the sou% B rank C to %ickles in %urchase of
N F3 <i4h 7ha4 Aroduc4 7ould 8ou associa4e 4he brand MaggiO
:etchu% 5oodles Sou% Masala
12Q ECQ 10Q 3Q
(n4erAre4a4ion
ECQ of consumer associate the noodle +ith "rand maggi, 12Q consumer associate the ketchu%, 10Q consumer associate +ith sou% B 3Q associate the masala +ith "rand maggi)
N 63 !n a scale of : 4o F ra4e Maggi on 4he follo7ing Aarame4ers
*aste =#gieneR%urt# Variet#Rfla$or 4$aila"ilit# %ackaging
C 3 C
(n4erAre4a4ion
9rom the scale 1 to C the consumers ga$e C.highest rate0 to the taste B a$ala"ilit#, rate to the h#gieneR%urit# B %ackaging B 3.lo+er rate0 to the $ariet# B fla$our) So the com%an# need to introduce maggi in different $ariet# B fla$our)
N Q3 an1 4he ca4egories 7hich Maggi should loo1 in fu4ure in order of 8our imAor4ance0
/hocolate Salted %otato chi%s 9ruit &uice ,rocessed foods
E 1C 3 20
others
C
(n4erAre4a4ion
=ere the consumer ranked the maggi should look in future in order their im%ortance B 20Q of %eo%le said it should "e in %rcessed food, 1CQ of %eo%le said it should "e in salted %otato chi%s, EQ said it should "e in chocolate , 3Q in fruit &uce B remaining said others) So com%an# should take the action to fulfill the consumer demand according to their im%ortance)
N R3 2o7 do 8ou ra4e Maggi brand in 4erms of follo7ing Aarame4ers3
12%ertise *rust+orthiness 6ia"ilit# 5one of these
C 3 1
(n4erAre4a4ion *he consumer rate the maggi in the %arameters e2%ertise, trust+orthiness, lia"ilit#, none of these)the# ga$e C.highest0 to the trust+orthiness, 1.lo+est0 to the other factores) to e2%ertise, 3 to lia"ilit# B
N 93 2o7 do 8ou Aercei5e Maggi Aroduc4sO ;ood to health Read# to eat >unk food 1C 2C 3
*ast#Rfun eating
E
(n4erAre4a4ion 2CQ of %eo%le %ercie$e the maggi %roduct read# to eat, 1CC of %eo%le %ercie$e good to health, EQ of %eo%le %ercie$e it as &unk food B 3Q %ercie$e it as tast#Rfun eating)
N :03 <hich Maggi Aroduc4s in noodles ca4egor8 do 8ou regularl8 bu8O J eAosi4ioning A7arenessK Maggi masala Maggi $egeta"le atta noodle Maggi dal atta noodle Maggi rice noodle mania others 2C 10 C F 2
(n4erAre4a4ion 8ut of C0 half of consumer consume maggi masala, 10 consumer consume maggi $egeta"le atta noodle, F consume maggi rice noodle mania, C consumer consume dal atta noodleB remaninig consume other) So the marketing B sale of maggi masala noodle is more as com%ared to other maggi noodle)
N ::3 /o 8ou Aercei5e maggi noodles as a heal4h8 Aroduc4O 7es 5o 3C 1C
(n4erAre4a4ion 8ut of 100Q , ECQ of consumers agreed that maggi noodles is a healt# %roduct B 2CQ of consumers said that maggie noodle is not a health# %roduct)
• S#P A%A&'S(S0
? SE+ME%#A#(!%0
Market Segmentation di$ides the heterogeneous market into homogenous grou%s of customers +ho share a similar set of needsR+ants and could "e satisfied "# s%ecific %roducts) Maggi Brand ha$e segmented the market on the "asis of lifest#le and ha"its of -RB45 94MI6I1S)
? #A +E#0
Market *argeting refers to e$aluating and deciding from amongst the $arious alternati$es, +hich segment can "e satisfied "est "# the com%an#) *he Maggi Brand ha$e mainl# targeted the :ids, 7outh, 8ffice ;oers B 3orking 3oman +hich falls into the categor# of 'con$enience @sa$$# time misers( +ho +ould like to get something instant and "e o$er +ith it Auickl#)
? P!S(#(!%(%+0
Market ,ositioning is the act of designing the com%an#Ks offerings and image to occu%# a distincti$e %lace in the minds of the target market) *he goal of %ositioning is to locate the "rand in the minds of consumers to ma2imise the %otential "enefit to the firm) Maggi has %ositioned itself in the S54/:S categor# and not in the meal categor# since Indians do not consider noodles as a %ro%er food item) *herefore Maggi ha$e de$elo%ed its "rand image of instant food %roducts +ith %ositioning statements such as '2 minutes noodles ( and '1as# to cook, good to eat()
• S<!# A%A'S(S0
? S# E%+#20
• • • • • • • • 1sta"lished 9amil# Brand) Strong ;lo"al /or%orate Brand.5I60) S%eciali<ation in food %rocessing categor# marketing and distri"ution in ur"an market) ,resence of other %roduct segments of food categor#O dair# %roduct, chocolate, infant foods) ,ioneer and leader so mo$er ad$antage in 5oodles, Sauces, :etchu%s and Sou% market) 5estle s#m"oli<ation of +arm, famil# B shelter) Research and de$elo%ment di$ision in India) 5e+ 5oodles %lant in -ttranchal)
? <EA*%ESS0
• • • • ;eneric "rand to 5oodles in India) 6o+ rural market %resences constraints) -niform "rand for all food categor#) Brand %roliferation)
? !PP- #-%(#(ES0
• • ;ro+ing %ackage and canned food market in India "#1CQ annuall#) =igh "rand a+areness of Indian consumers)
• •
8ther %roduct categor# like Biscuits, /hi%s and read# to eat market still une2%lored) 8%%ortunities to "e su"stitute to other snacks categor# of food %roducts)
? #2 EA#S0
• /om%etitors +ith long histor# in %roduct categor# Internationall# like, =ein< sauce and :etchu%s of =ein< Indian, *o% Ramen in 5oodles and :norr sou%s) • Single %roduct focused com%etitors like =ein< sauce and 3ai 3ai 5oodles) • • • 6ess entr# "arriers in the market segment for %roduct categor#) I*/Ks strong "ase in Indian market) Su"stitute %roduct to %roduct segment)
C2AP#E
@4
C!%C&-S(!% M EC!ME%/A#(!%S
• C!%C&-S(!%0
*he food %rocessing "usiness in India is at a nascent stage) /urrentl#, onl# a"out 10Q of the out%ut is %rocessed and consumed in %ackaged form thus highlighting huge %otential for e2%ansion and gro+th) *raditionall#, Indians "elie$e in consuming fresh stuff rather than %ackaged or fro<en, "ut the trend is changing and the ne+ fast food generation is slo+l# changing) Riding on the success of noodles, 5estle India, tried to make e2tensions of the Maggi "rand to a num"er of %roducts like, sauces, ketchu%s, %ickles, sou%s, tastemakers and macaroni in the mid-1HH0s) -nfortunatel#, the macaroni and %ickles didnKt %ick u% as e2%ected) *he sou%s and sauces did some+hat fine, gathering considera"le sales $olumes and ha$e a satisfactor# %resence e$en toda#) TMaggi 5oodlesK itself faced a "it of difficult# +ith res%ect to TtasteK, and nearl# lost its %osition in the minds of Indian consumers in the late 1HH0s) 3hen 5estle changed the formulation of its tastemaker, the ominous %acket that came along +ith Maggi 5oodles, a ma&or chunk of consumers +ere %ut-off and sales started dro%%ing) 4lso, MaggiKs com%etitor T*o%RamenK took ad$antage of the situation and started a %arallel aggressi$e cam%aign to eat into MaggiKs market share) But the com%an# Auickl# realised this and +ent "ack into making the original formula cou%led +ith a free sam%ling cam%aign) *his hel%ed Maggi to +in "ack its lost consumers and %ushed u% its sales $olumes againU Maggi *he #ear 200F sa+ India leading in +orld +ide Maggi sales) *he "rand has gro+n to an estimated $alue of Rs 1D0-1E0 crore and contri"utes at least F@HQ to 5estle IndiaKs to% line) 4ll the same, some 9M/; anal#sts feel that the "rand has not done much to e2%and the noodles categor#) 1$en after 2C #ears of its launch, the si<e of the instant noodles market is #et Auite small at Rs 300 crore) But #es, the %arent com%an#, 5estle India 6imited has certainl# encouraged the "rand to enter into other culinar# %roducts)
•
EC!MME%/A#(!%0
? 9ora# into the other food %roducts like chi%s, chocolates etc) under its sole "rand name Maggi as Maggi is a "rand in itself +hich has "een +ell recogni<ed "# the masses) ? Maggi should 9ocus on creating a %roduct that do not need an# cooking) ? It should conduct %romotional cam%aigns at schools in small to+ns +ith %o%ulation not more than 1000 ? It should strengthen the distri"ution channel of the rural areas +ithin 100km of all the metros) ? It should launch ne+ ad$ertisement cam%aign .*V, radio, %rint media commercials0 +ith a "rand am"assador or mascot
A%%E=- E
N-ES(!%%A( E
N :3 <ha4 Aroduc4 7ould 8ou associa4e 7i4h 4he 4ag line men4ioned belo7O ? Its differentWWWWWWWWWWWWWWWWWW) ? ?onKt "e a noodle, "e a snoodleWWWWWWWWWWWWWWWW ? 2 minute noodlesR"as 2 minuteWWWWWWWWWWWWWWWW ? >itna tast#, utna health#WWWWWWWWWWWWWWWWW ? Mumm# "hook lagi hWWWWWWWWWWWWWWWWW ? *r# it +ith a t+istWWWWWWWWWWWWWWWW)) ? =eart# sou% +arm #ou from insideWWWWWWWWWWWWWWWW) ? 9ast to cook, good to eatWWWWWWWWWWWWWWWWWW))
N 93 <ha4 comes firs4 in 8our mind 7hen 8ou hear 4he 7ord MA++(O
? 5oodles ? 9ast 9ood ? Snacks ? 5one of these
N ;3 <ha4 is 4he brand 4ha4 comes 4o 8our mind 7hen 7e sa8 4he 7ord noodlesO
? Maggi ? *o% Ramen ? 3ai 3ai 5oodles ? 4nil 5oodles
N 43 an1 4he follo7ing Maggi Aroduc4s 73r34 frePuenc4 of Aurchase 7i4h being 4he highes4 ran1
? 5oodles ZZZZZZ ? :etchu% ZZZZZZ ? Sou% ZZZZZ
? ,ickles ZZZZZ
? /u"es ZZZZZ
N F3 <i4h 7ha4 Aroduc4 7ould 8ou associa4e 4he brand MaggiO
? :etchu% ? 5oodles ? Sou% ? Masala
N 63 !n a scale of : 4o F ra4e Maggi on 4he follo7ing Aarame4ers
? *aste ZZZZ ? =#giene R,urit# ZZZZ ? Variet#R9la$ors ZZZZ ? 4$aila"ilit# ZZZZ ? ,ackaging ZZZZ
N Q3 an1 4he ca4egories 7hich Maggi should loo1 in fu4ure in order of 8our imAor4ance0
? /hocolates ZZZZZ ? Salted %otato chi%s ZZZZ
? 9ruit &uices ZZZZ ? ,rocessed foods.read# to use %astes and masalas0 ZZZZ ? 8thers.%lease mention0 ZZZZZZZZZZZZZZZZ
N R3 2o7 do 8ou ra4e Maggi brand in 4erms of follo7ing Aarame4ers N 93 2o7 do 8ou Aercei5e Maggi Aroduc4sO ? ;ood to health ? Read# to eat ? >unk food ? *ast#Rfun eating N :03 <hich Maggi Aroduc4s in noodles ca4egor8 do 8ou regularl8 bu8O J eAosi4ioning A7arenessK ? Maggi masala ? Maggi $egeta"le atta noodles ? Maggi dal atta noodles ? Maggi rice noodle mania ? 8thers N ::3 /o 8ou Aercei5e maggi noodles as a heal4h8 Aroduc4O
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• .!!*S0 ;-,*4 /)B), Marketing Management, Sultan /hand B Sons, 200 )
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, Marketing Management, ?han%at Rrai B/o),2010)• <E. S(#ES0 htt%ORRen)+iki%edia)orgR+ikiR5estle htt%ORRen)+iki%edia)orgR+ikiRMaggi
http://en.wikipedia.org/wiki/Fast-moving_consumer_goods http://www.managementparadise.com\ http://www.bms.co.in
doc_211235462.doc