PRESENTED BY
MADHURA BHADSAVLE 01005 POOJA KOJREKAR 01007
AKANSHA KUMARI 01009
MOHAMED ARSHAD 01010 SAMIKSHA THAKUR 01011
INDUSTRY ANALYSIS
NOODLE INDUSTRY
Invented by Momofuko Ando of Nissin foods, Japan.
Dried or precooked noodles fused with oil and often sold with a packet of flavoring.
Most popular brand in india is Nestl's Maggi
Regarded as 2 minute noodles Industry is growing 20% per annum.
COMPETITORS
WHAT IS THE BRAND NAME THAT COMES TO YOUR MIND WHEN I SAY THE WORD NOODLES?????
NESTLE
Nestle S.A was founded in 1867 in Geneva, Switzerland by Henri Nestle. Basically the company started to meet the need of milk during world war 1.
Nestle's India started 1912
Nestle formed a company in India, namely Nestle India Ltd, and set up its first factory in 1961 at Moga, Punjab.
NESTLE INDIA
Nestle India is a subsidiary of Nestle S.A. of Switzerland. Nestle India manufactures a variety of food products.
http://www.iloveindia.com/economy-of-india/top-50-companies/nestle-india.html
ORIGIN
Maggi is a Nestle brand of instant noodles, soups stocks, bullion, sauces a and seasoning. Maggi word- Carlo Donnati NESTLE launched maggi for the first time in the year 1982. The brand is popular in: Australia India Malasia New Zealand Singapore South Africa
OTHER PRODUCTS OF MAGGI
CURRENT SCENARIO
Leading brand in India as well as in world. Market share till december -2009 (90.7%) - 2010- 81%
BCG MATRIX
PORTERS 5 FORCES
NEW ENTRANTS Potential threat of new entrants for maggi noodles
SUPPLIERS Distributors Raw material Suppliers, Packaging
INDUSTRIAL RIVALRY Top Ramen, Foodles, Chings
BUYERS Customers Mind set Brand image
SUBSTITUTES Chowmen Pasta
PRODUCT LIFE CYCLE
INTRODUCTORY STAGE (FULL SCALE LAUNCH OF NEW PRODUCT)
Created an entirely new food category in the Indian packaged food market. Pioneer in instant noodles Main focus was kids, bachelors and workingwomen. No competition. Limited distribution.
CONT.
Promoted by tagline BAS 2 MINUTE Giving gifts on empty packets Promotion campaigns in schools . Low pricing strategy to make product affordable NIL also introduced several other products like soups and cooking aids under maggi.
GROWTH STAGE
Maggi became the no 1 brand in instant noodles Sales Increased Accepted as ready to eat food. Prices were kept normal Profits began to rise Promoted as FAST TO COOK, GOOD TO EAT No new changes in the product
MATURITY STAGE
Constant sales Profit maximization Extending product line. Introduction of healthy and innovative products Focus on new segment of society promotional strategy for new products.
DECLINE STAGE
Sales saw decline in 1990.
Changed formulation from oil fried noodles to air dried. Large inventories of unsold items. Also faced a tough competetion from top ramen
REINTRODUCTION STAGE
In 1999 due to declining sales maggi reintroduced its original masala flavour after which the sales were regained again.
4 PS
Maggi 2 Minutes Noodle- (Masala, Chiken, Curry, TangyTomato, chatpata, Chotu) Maggi Dal Aata Noodle Maggi Mania- (Lemon Masala, Shahi Pulo) Maggi Cuppa Mania Maggi Vegetable Atta Noodle Maggi multigrainz noodles
Lower Price Strategy Minipacks for Rs.5 Inflation Effect- Reduction in volume then price Healthier product at higher price Innovative product at higher price
Wide distribution network To compete with modern retail trend- 2 new business division Malls, Target hawkers, Grocery stores. Limited penetration in rural area
Free distribution in school for promotion Giving gifts on return of empty packets Quiz & competition in schools. Sponsored Hum Log 1st TV show on Doordarshan. Effective tagline communication Maggi has recently launched MAIN AUR MERI MAGGI campaign in commensuration of 25 years The maggi club
Convince Product
Fast To Cook, Good To Eat
Instant Food
Bas 2 Minutes Just Add Garm Pani, Carry On Janni
Fun Food
Mummy Bhook Lagi Hai
Health And Wellness Food
Taste Bhi, Health Bhi
Segmentation Demographic
Targeting Kids, Youth
Positioning Fast to cook and good to eat
Differentiation Product
Geographic
Urban, Semi-urban, Rural
Office goers, Working women,
2-Minutes noodles
Taste bhi, Health bhi
Price
Psychographic
Behavioural
Health conscious people
Health bhi,Taste bhi
Packaging
SWOT ANALYSIS
STRENGTHS
Pioneer & Market leader of instant noodles
WEAKNESSES OPPORTUNITIE THREATS S
Heavily dependent Unexplored rural on one product area Strong presence of regional competitors
Strong global corporate Health related brand (NIL) issues Distribution channels Innovative flavours for Indian taste buds
Increasing number of Competitive working youth pricing Affinity of Indians to Chinese food
Advertising strategy
RECOMMENDATIONS
Product: the company should work in the health part of the product. Can add new flavours. EG. Use of Soyabean flour, pulses flavour Place: the company should focus on rural market. Promotion: level of discounts is low. Should be increased through various strategies. E.g. buy 1 get 1 free. Frequency of ads should be increased, brand ambassadors. PRICE: It should be more competitively priced. Competitors should be kept in mind.
SUGGESTIVE PROMOTIONAL STATEGIES
Focus on creating distinctive image, based on twin benefits of taste and health which emphasis on rural and health conscious market. Conduct promotional campaigns in schools in small towns. Increase the distribution strategies in rural areas. Launch new ad campaign with a brand ambassador. Conduct research in areas where market is low. Increase ads in print media.
REFERENCES
http://www.business-standard.com/india/news/maggibestboth-worlds/384501/ http://colonclenz.net/news/Maggi-noodles.html http://www.moneycontrol.com/stocks/company_info/direc tors_report.php?sc_did=NI http://epaper.hindustantimes.com/ArticleText.aspx?article =15_09_2009_008_019&kword=&mode=1 http://8ate.blogspot.com/2009/03/old-ad-maggi-imhungry.html http://the--noodles.blogspot.com/2009/08/history-ofmaggi-noodles.html http://en.wikipedia.org/wiki/Maggi_noodles http://www.scribd.com/doc/22581230/Maggi http://www.iloveindia.com/economy-of-india/top-50companies/nestle-india.html
