Targeting

Group 2

Competition Analysis

CompetitorsMaggi Noodles/Pasta/SoupsIndustry: MTR Upma/Dosa Mix, roasted vermicelli, Chitale Bandhu Dhokla MixBrand: Knorr, Sunfeast, Chings, Tasty treat, Wai WaiGenre: Other packaged ediblesForm: Soups, Sandwich, Rolls, Energy bars, Biscuits, Wafers, Milkshakes

Maggi KetchupIndustry: Chings Green Chilli Sauce/ sweet chilli sauce, Just Schezwan Sauce Brand: Heinz, Kissan, Sil, Cremica, Mothers Recipe PicklesGenre: other packaged ediblesForm: Curd, Jams, Pickles, Chutney , Mayonnaise, Cheese dips.

Porters Five Force Model for Maggi

Threat of New EntrantsMany companies enter into the market every year to gain a portion of the profitable marketITC garnered considerable market share with it Yippie noodles within three years of its launchMaggi is constantly a target, hence the threat of new entrants is moderateThreat of Substitute Goods From traditional snacks to biscuits, there are arrays of similar products that compete directly with MaggiMaggi has focused on the health and wellness aspects of its products Bargaining Power of SuppliersLarge purchasing power of Maggi The suppliers of agricultural commodities offer a product that is far from unique, giving Maggi more bargaining power than its suppliersBargaining Power of CustomersClose substitutes for Maggi products allows preferences of the customer to be very powerfulMaggi is incorporating health and wellness into the creation of its Maggi brand products like Atta Noodles, Maggi Healthy soups, etc. Competitive Rivalry within the IndustryMaggi faces tough competition from ITC in noodles and pasta segment, HULs Knorr Soup in soup market, Kissan and Heinz in ketchup market. Rivalry is fierce in the food processing industry and this is a good thing for consumers

Maggi NoodlesLegacyThree decade old first mover advantageBrand Maggi now a generic for instant noodle categoryMarket leader with more than 70% share in the 3000 Cr instant noodle marketStrategies adopted in the pastReformulated its noodles in 1997 unsuccessfulRe-introduced old formulation in 1999 to revive salesIntroduced Atta Noodles in 2005 to target health conscious customers

Sunfeast Yippee! Noodles (ITC)Launched in September, 2010

Strategy adoptedStress on choices included two tastemakers in their product portfolio Shape of the noodle cake round to keep noodles intact and longUse of superior quality ITCs Aashirwad AttaNo lumping post cookingPositioned itself as a better alternative to Maggi

StrengthsDeep penetration provided by ITCs established distribution networkUsed the already established Sunfeast brandBacked by ITCs financial muscle to tackle competitors WeaknessesLow visibilityCustomer brand loyalty and trust towards MaggiMaggis Counter StrategyAggressive campaigning for customer loyalty Meri Maggi campaignRenewed focus on health conscious consumers Vegetable Multigrainz Noodles

Knorr Soups (HUL)Undisputed market leader in the 300 cr powdered soup market

Strategy adopted Positioned itself as a quality substitute to home-made soup Has maintained its pricing in the Rs. 30-40 range despite Chings Secret Soups targeting the Rs. 10 price point segment.Strengths More than ten varieties of flavors over vegetarian and non-vegetarian categories Assures quality and enjoys consumer trust with 15 year presence in the market More effective ad campaigns compared to MaggiMaggis Counter StrategyRe-launched itself as Healthy Soups Lower price and both small and large serving packsUsed Nestles patented granulation based technology to launch 5 senses relaxation variety of soups

WeaknessesHasnt targeted the cup soup/instant soup marketNo small serving packsPriced highest amongst all players

Heinz Tomato KetchupLaunched in September, 2000

Strategy adoptedAcquire local food companies to increasing distribution networkPrice reduction To improve market share, reducing w/v of TomatoRe-positioning it as Focused on health from Focused on taste

StrengthsHeinz has a strong brand and product portfolioBacked by Heinzs financial muscle for producing innovative productsExperience Company operating in food manufacturing industry for over 100 years WeaknessesResearch and Development division not in IndiaHigher operating costs affecting margins resulting in quality reductions Very few variants present in the marketMaggis Counter StrategyKeeping the product quality high even in tough economic conditionsLaunch of Dhania Chutney Targeting working youths and housewives

Sunfeast Pasta (ITC)Launched in July, 2005

Strategy adopted India's first instant Pasta. Eliminate the tedious cooking processAvailable in Six exciting flavors. Chicken and Pizza are the most sought after variant. Positioned as: Ab Pasta main Pizza ka mazza loSigned a deal with Cartoon Network for promoting through popular character BeyBlade in order to make Kids having PastaStrengths Made from high protein Durum wheat. A nutritious,ready to cook snack which is not fried and does not contain maida, having a saucemaker inside Sunfeast as a Umbrella brand Established distribution channel and strong financials of ITCWeaknessesMothers believe Sunfeast pasta still requires milk to be included in the preparation Actual cooking time is more than specified.

Maggis Counter StrategyAggressive campaigning for customer loyalty Meri Maggi campaign and launch Nutri-licious Pazzta in two flavours, 'Masala Penne and Cheese Macaroni The common theme remained a 'Taste bhi, health bhi product

Consumer Insights

MAGGI NOODLES73% of students who are male prefer Maggi noodles

72% of working people who are males prefer Maggi noodles

Attributed time-saver factor for preference

No longer targeted only for kids

Maggi Masala is the biggest hitMultigrain and Cuppamania preferred leastWai-wai and other local brands occupy significant portion of consumer purchasePercentage of consumers who prefer Maggi noodlesConsumer Insight:

Almost 41% of consumers buy maggi noodles weekly

31% of consumers favored discount in products

Most of consumer are satisfied with taste

47% of consumer satisfied with Price and 53% with Quality

MAGGI NOODLESConsumer Satisfaction with various parametersConsumer Insight:

MAGGI KETCHUPPeople can relate to it more because of Brand Maggi

77% of our consumers think it is very good in tasteFlavors preferred by ConsumersDemography of consumersConsumer Insight:

85% of our consumer think it is value for money

43% of our consumer like to buy it in small pouchesMAGGI KETCHUPConsumer Satisfaction with various parametersConsumer Satisfaction with various parametersConsumer Insight:

Kids when hungry, prefer Maggi Noodles over Pasta

Working people prefer Maggi over Pasta as actual cooking time is less than 5 minutes

Pasta should be in form of Spaghetti (which is more like noodles) to attract kidsMAGGI PAZZTAConsumer Satisfaction with various parametersConsumer selecting Maggi Pasta as top two preferencesConsumer Insight:

Consumer PerceptionConsumer Insight:

Taste of maggi soup should be improved

People are looking for more variety

Knorr and Top Ramen soup are growing as an alternative

Easy to cook is one of the strength for Maggi SoupConsumer selecting Maggi soup as top two preferencesMAGGI HEALTHY SOUPS

Strategy

PRODUCT INNOVATION Maggi magic cubes Maggi bhuna masala Maggi coconut milk product Maggi pizza mazza Maggi masala ae maggi

PRODUCT Position itself as low price snack Regular pack comes for Rs 10 Value-for-money pack priced at Rs 5 Rs 5 and Rs 2 packs at select markets Affordable by all income groups

PRICEPRODUCT LEVEL HIERARCHYDistribution network well spreadEnjoys huge shelf space in retail stores

PLACE Sponsor various cookery shows Celebrity endorsements Giving gifts on return of empty packets Dry sampling - Maggi packets Wet sampling - Cooked MaggiTV, Print Media

Strategies Strong Customer Relations- share Maggi moments @ www.meandmerimaggi.com Continuous product innovation Repositioning as a healthier snack Price Incentives Capturing New Customer Base Complimentary products Masala mix, Bhuna Masala targetted at women

PROMOTION

Brand Communication: DSTP AnalysisDifferentiationEmotional bondInnovationPackagingFlavorsSegmentationDemographic: Age, Gender, OccupationGeographic :Pan IndiaPsychographic:Lifestyle, Eating Opinion and Interest

Income segmentation: small pkts in soups21

TargetingPositioningKidsYouthOffice going people especially womenConvenience savvy time misersFunctional Benefit Bas 2-minute Taste bhi, Health bhiEmotional Benefit Guess the taste Fast to cook good to eat Health ko mazedaar banaoSelf Expressive Benefit Meri Maggi Happiness is Homemade

Market Performance Analysis

Market Growth (%)Market Share(%)DogCash CowQuestion MarkStars

Stages of Industry MaturityCompetitivePositionEmbryonicGrowthMaturityAgingDominantMaggi Masala NoodlesStrongMaggi Veg Multigrain NoodlesMaggi Veg Atta NoodlesFavorableMaggi PastaMaggi Ketchup/PichkuTenableMaggi Healthy SoupsMaggi CuppamaniaWeakADL Matrix : Strategic Positioning of Maggi

Recent Tactical DevelopmentsPromoting Maggi recipes at Maggi KiosksAddressing nutritional needsRegion based strategic innovationPromotion of new Oats noodles Health Ko Mazedar Banao campaign to combat sedentary lifestyles: advertising can focus on more segments. Sales promotion

Branding Model for improvement

EconomicalTastyHealthyJust 2 minutesyummyMe and meri maggiBackup foodFast to cookReliableEasy to cookConvenientAvailableNutritiousEnjoyableHygienicFillingValue for MoneyFlavorsWell knownNestleDeliciousHungerNoodlesKetchupPazztaSoupsTastemakerThank YouE007Nidhi AuroraE008Siddhant AwasthiE010Arka BagchiE027Shweta GuptaE028Sushant Gupta