nestlé is... - essay zone. web viewnestlé offers quality culinary and beverage...

48
1. INTRODUCTION OF FMCG INDUSTRY What is the FMCG Industry? "Resilient, Rewarding and really, really Fast." FMCG industry, alternatively called as CPG (Consumer packaged goods) industry primarily deals with the production, distribution and marketing of consumer packaged goods. The Fast Moving Consumer Goods (FMCG) are those consumables which are normally consumed by the consumers at a regular interval. Some of the prime activities of FMCG industry are selling, marketing, financing, purchasing, etc. The industry also engaged in operations, supply chain, production and general management. The Fast Moving Consumer Goods (FMCG) industry in India is one of the largest sectors in the country and over the years has been growing at a very steady pace. The sector consists of consumer non-durable Shri Chimanbhai Patel Institute of Management and Research Page 1

Upload: vokhanh

Post on 06-Feb-2018

212 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Nestlé is... - Essay Zone. Web viewNestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers ... That’s the importance of word

1. INTRODUCTION OF FMCG INDUSTRY

What is the FMCG Industry?

"Resilient, Rewarding and really, really Fast."

FMCG industry, alternatively called as CPG (Consumer packaged goods) industry primarily deals with the production, distribution and marketing of consumer packaged goods. The Fast Moving Consumer Goods (FMCG) are those consumables which are normally consumed by the consumers at a regular interval. Some of the prime activities of FMCG industry are selling, marketing, financing, purchasing, etc. The industry also engaged in operations, supply chain, production and general management.

The Fast Moving Consumer Goods (FMCG) industry in India is one of the largest sectors in the country and over the years has been growing at a very steady pace. The sector consists of consumer non-durable products which broadly consists, personal care, household care and food & beverages. The Indian FMCG industry is largely classified as organised and unorganised. This sector is also buoyed by intense competition. Besides competition, this industry is also marked by a robust distribution network coupled with increasing influx of MNCs across the entire value chain. This sector continues to remain highly fragmented.

Shri Chimanbhai Patel Institute of Management and Research Page 1

Page 2: Nestlé is... - Essay Zone. Web viewNestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers ... That’s the importance of word

Industry Classification

The FMCG industry is volume driven and is characterised by low margins. The products are branded and backed by marketing, heavy advertising, slick packaging and strong distribution networks. The FMCG segment can be classified under the premium segment and popular segment. The premium segment caters mostly to the higher/upper middle class which is not as price sensitive apart from being brand conscious. The price sensitive popular or mass segment consists of consumers belonging mainly to the semi-urban or rural areas who are not particularly brand conscious. Products sold in the popular segment have considerably lower prices than their premium counterparts. Following are the segment-wise product details along with the major players:

Shri Chimanbhai Patel Institute of Management and Research Page 2

Page 3: Nestlé is... - Essay Zone. Web viewNestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers ... That’s the importance of word

The facts about the FMCG Industry

FMCG, otherwise known as CPG, is one of the biggest industries in the world and there are a lot of facts that stand the FMCG industry apart as a career choice:

FMCG companies are behind the biggest brands in the world. FMCG is all about names, the products which everyone recognises from trips to the supermarket or from ads on television. The brands that make up this sector are the high profile ones, the ones everybody knows and loves. Think Coca-Cola, Dettol and Dove. This is an industry that puts you in living rooms, kitchens and bathrooms across the globe.

The FMCG industry changes fast and is constantly evolving. It's fair to say there is never a dull moment in FMCG. From the pace at which goods leave the shelves to the rate of product innovation and career progression, things move quickly. And it doesn't end there. The brands themselves are changing just as quickly. 40% of brands on the top 100 list twenty years ago have already been replaced by new names today.

FMCG firms thrive on employee and customer retention. Employee investment is a big part of the ethos of the FMCG world. Perhaps it's because we understand the importance of loyalty. Customer loyalty can make or break a brand. Take Twinning’s, for example – a century after they entered the top 100 brand list, they are still there and going strong. So it makes sense for FMCG companies to encourage the loyalty of their employees too.

FMCG companies can beat the recession. This is an industry that has proved itself very resilient to recession – with the majority of companies in the sector weathering the financial storm in a way that very few others have managed. Why? Well, consumers will always need to buy the products created by FMCG companies. They may not buy big items like refrigerators or cars in a recession, but floors still need to be cleaned, clothes need to be laundered and aches and pains still need to be soothed.

Shri Chimanbhai Patel Institute of Management and Research Page 3

Page 4: Nestlé is... - Essay Zone. Web viewNestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers ... That’s the importance of word

The FMCG industry thinks bigger – and better. This is an industry that offers things on a whole new scale. Where else could you find yourself handling $150 million accounts? Working in FMCG gives you the chance to be a part of some global success stories and influence the way consumers shop for products. FMCG firms are always thinking of the next great discovery or innovation – always developing and ever-changing to meet consumer's needs.

FMCG has a history of delivering what consumers want. Some FMCG companies' roots are over two centuries old – driving the industry to a value of $570.1 billion. In short, to quote Sam Walton, founder of Wal-Mart: "High expectations are the key to everything"

Shri Chimanbhai Patel Institute of Management and Research Page 4

Page 5: Nestlé is... - Essay Zone. Web viewNestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers ... That’s the importance of word

2. INTRODUCTION OF NESTLE COMPANY

Nestlé is...

...the world's leading nutrition, health and Wellness Company. Their mission of "Good Food, Good Life" is to provide consumers with the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions, from morning to night.

They believe that leadership is about behaviour, and they recognise that trust is earned over a long period of time by consistently delivering on their promises. Nestlé believes that it is only possible to create long-term sustainable value for their shareholders if their behaviour, strategies and operations also create value for the communities where they operate, for their business partners and of course, for their consumers. They call this 'creating shared value'.

The Nestlé Corporate Business Principles are at the basis of their company’s culture, developed over 140 years, which reflects the ideas of fairness, honesty and long-term thinking.

Nestlé can trace its origins back to 1866, when the first European condensed milk factory was opened in Cham, Switzerland, by the Anglo-Swiss Condensed Milk Company. One year later, Henri Nestlé, a trained pharmacist, launched one of the world’s first prepared infant cereals ‘Farine lactée’ in Vevey, Switzerland.

The two companies merged in 1905 to become the Nestlé we know today, with headquarters still based in the Swiss town of Vevey. They employ around 328 000 people and have factories or operations in almost every country in the world. Nestlé sales for 2011 were almost CHF 83.7 bn.

"Good Food, Good Life" is the promise they commit to everyday, everywhere – to enhance lives, throughout life, with good food and beverages.

Shri Chimanbhai Patel Institute of Management and Research Page 5

Page 6: Nestlé is... - Essay Zone. Web viewNestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers ... That’s the importance of word

Ever since Henri Nestlé invented Farine Lactée to alleviate infant mortality, Nestlé has been dedicated to enhancing lives. They strive to help consumers care for themselves and their families by offering tastier and healthier choices. Their dedication to great tasting, healthier and trusted products is tied to their respect for the environment and the people they work with.

Business of the Nestle

Nestle is the largest food company in the world. It is present in all five continents, has an annual turnover of 74.7 billion Swiss Frances. There are 509 factories are running in 83 countries, having 231,000 employs

Company Mission

At Nestle, they believe that research can help them to make better food, so that people live a better life.

Good food is the primary source of good health, so they are trying to make good food. To provide fresh and pure products to the customers, they introduced (SHE) Safety, Health and environment policy to protect health of their employs and keep clean their surrounding environment.

Company Vision

Vision of Nestle Milkpak Company is to expand business according to the increasing demand of market.

As per their company vision in 2020 production capacity of all plants working in Pakistan is being increased. So extension of Kabirwala Plant is the example of their company vision.

Shri Chimanbhai Patel Institute of Management and Research Page 6

Page 7: Nestlé is... - Essay Zone. Web viewNestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers ... That’s the importance of word

3. INTRODUCTION TO MAGGI NOODLES

Ever since its launch in India in 1983, this brand has become synonymous with noodles. The bright red and yellow colours of the packet with the brilliant blue “2-minute Noodles” printed on it has found a place on every kitchen. Over the years, Maggi has grown as a brand and positioned itself as a “Fast to cook! Good to Eat! “ food product.

The history of this brand traces back to the 19th century when industrial revolution in Switzerland created factory jobs for women, who were therefore left with very little time to prepare meals. Due to this growing problem Swiss Public Welfare Society asked a miller named Julius Maggi to create a vegetable food product that would be quick to prepare and easy to digest. Julius, the son of an Italian immigrant came up with a formula to bring added taste to meals in 1863. Soon after he was commissioned by the Swiss Public Welfare Society, he came up with two instant pea soups & a bean soup- the first launch of Maggi brand of instant foods in 1882-83.Towards the end of the century, Maggi company was producing not just powdered soups, but bouillon cubes, sauces and other flavourings.

Shri Chimanbhai Patel Institute of Management and Research Page 7

Page 8: Nestlé is... - Essay Zone. Web viewNestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers ... That’s the importance of word

However in India (the largest consumer of Maggi noodles in the world!) it was launched in 1980 by Nestle group of companies. Maggie had merged with Nestle family in 1947. When launched it had to face a stiff competition from the ready to eat snack segments like biscuits, wafers etc. Also it had other competitor the so called home made snacks which are till today considered healthy and hygienic. Hence to capture the market it was positioned as a hygienic home made snack, a smart move. But still this didn’t work, as it was targeted towards the wrong target group, the working women. After conducting an extensive research, the firm found that the children were the biggest consumers of Maggi noodles. Quickly a strategy was developed to capture the kids segment with various tools of sales promotion like pencils, fun books, Maggi clubs which worked wonders for it. No doubt the ads of Maggi have shown a hungry kid saying “Mummy bhookh lagi hai” to which his mom replies “Bas do minute!” and soon he is happily eating Maggie noodles.

Further the MAGGI 2-MINUTE Noodles has been renovated to provide 20% of the RDA1 of Calcium and Protein for the core target group building on the nutrition proposition “Taste bhi health bhi”. The company could have easily positioned the product as a meal, but did not, as a study had shown that Indian mentality did not accept anything other than rice or roti as meal. They made it a easy to cook snack that could be prepared in just two minutes. The formula clicked well and Maggi became a brand name.

Shri Chimanbhai Patel Institute of Management and Research Page 8

Page 9: Nestlé is... - Essay Zone. Web viewNestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers ... That’s the importance of word

4. PRODUCT MIX, BRANDS AND PRODUCT OFFERING

4.1 PRODUCTS MIX OF NESTLE:

A product mix is the set of all products and items, a particular seller offers for sale. A product mix consists of various product lines. A company’s product mix has a certain width, length, depth and consistency.

Nestle is a well-known company all over the world and Pakistan. The company basically deals in food products as their logo says “Good Food, Good Life”.

The width of a product mix refers to how many different product lines the company carries.

The length of a product mix refers to the total number of items in the mix.

The depth of a product mix refers to how many variants are offered of each product in the line.

Nestlé’s major products lines:

Milk Products:-

Nestle Milkpak UHT Milk

Milkpak Butter

Milkpak UHT Cream

Milkpak Desi Ghee

Nestle Everyday

Nestle Nido

Shri Chimanbhai Patel Institute of Management and Research Page 9

Page 10: Nestlé is... - Essay Zone. Web viewNestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers ... That’s the importance of word

Chocolate Drinks:-

Milo power

Milo RTD

Coffee:-

Nescafe Classic

Fruit Drinks:-

Frost

Nestle Orange Juice

Dietetic & Infant Products:-

Lactogen

Cereals

Nestle Rice

Nestle Wheat

Neslac 

Culinary Products:-

Maggi Noodles

o Maggi Vegetable Multigrainz Noodles

o Maggi 2-Minute Noodles

o Maggi Vegetable Atta Noodles

o Maggi Cuppa Mania

Shri Chimanbhai Patel Institute of Management and Research Page 10

Page 11: Nestlé is... - Essay Zone. Web viewNestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers ... That’s the importance of word

Maggi Cold Sauces

Confectionery:-

Nestle Milkpak

Polo Mint

Kitkat

Water:-

Nestle Pure Life

Shri Chimanbhai Patel Institute of Management and Research Page 11

Page 12: Nestlé is... - Essay Zone. Web viewNestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers ... That’s the importance of word

4.2 BRANDS OF NESTLE

Nestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers count on for great taste, consistency, and convenience. 

Major Brands of Nestle are as follows:

MINOR'S® HOT POCKETS®

CHEF-MATE® LEAN POCKETS®

STOUFFER'S® NESTLÉ® HOT COCOA

STOUFFER'S® LEAN CUISINE® MAGGI®

Shri Chimanbhai Patel Institute of Management and Research Page 12

Page 13: Nestlé is... - Essay Zone. Web viewNestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers ... That’s the importance of word

NESCAFÉ® NESTLÉ® TOLL HOUSE®

COFFEE-MATE® LIBBY'S®

NESTEA® NESTLÉ® CARNATION®

NESTLÉ® DESSERT INGREDIENTS TRIO®

NESCAFÉ® MILANO

Shri Chimanbhai Patel Institute of Management and Research Page 13

Page 14: Nestlé is... - Essay Zone. Web viewNestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers ... That’s the importance of word

4.3 PRODUCTS OFFERING BY MAGGI

MAGGI Vegetable Multigrainz Noodles MAGGI 2-Minute Noodles MAGGI Vegetable Atta Noodles MAGGI Cuppa Mania

MAGGI Healthy Soups Sanjeevni MAGGI Healthy Cup Soup

MAGGI Sauces MAGGI Pichkoo

Shri Chimanbhai Patel Institute of Management and Research Page 14

Page 15: Nestlé is... - Essay Zone. Web viewNestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers ... That’s the importance of word

MAGGI MAGIC Cubes MAGGI Bhuna Masala MAGGI Coconut Milk Powder MAGGI Pizza Mazza MAGGI Masala-ae-Magic

MAGGI NUTRI-LICIOUS PAZZTA

Shri Chimanbhai Patel Institute of Management and Research Page 15

Page 16: Nestlé is... - Essay Zone. Web viewNestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers ... That’s the importance of word

5. MARKET SEGMENTATION, TARGETING AND POSITIONING

Segmentation is the process of grouping people or organizations within a market according to similar needs, characteristics, or behaviours.

Targeting is the actual selection of the segment you want to serve the target market is the group of people or organizations whose needs a product is specifically designed to satisfy

Positioning is the use of marketing to enable people to form a mental image of your product in their minds (relative to other products)

Shri Chimanbhai Patel Institute of Management and Research Page 16

Page 17: Nestlé is... - Essay Zone. Web viewNestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers ... That’s the importance of word

5.1 Bases for Segmenting Consumer Markets

A. Geographic Segmentation:Division of the market into different geographical units such as nations, cities, states, regions, neighbourhoods etc.

Region: South India, Western Region, North, East City: Class Rural, urban, semi urban areas

B. Demographic Segmentation:The market is divided on the basis of variables such as age, family size, family life cycle, gender, income, occupation, education, religion etc. Demographic variables are easy to measure and are directly associated with customer.

C. Psychographic Segmentation:Here buyers are divided into different groups on the basis of psychological/personality traits, lifestyles or values.

Lifestyle: Culture-oriented, sports oriented, outdoor oriented. Classification is done on three parameters: AIO Activities, lifestyles or values.

Personality: Compulsive, gregarious, authoritarian, ambitious

D. Behavioural segmentation:Buyers are divided on the basis of their knowledge of attitude toward, use of, or response to a product. The behavioural variables are as follows:

Usage rate: Light, Medium, Heavy Loyalty status: None, medium, strong, absolute Readiness stage: Unaware, aware, informed, desirous, intending to buy Attitude toward product: Enthusiastic, positive, indifferent, negative,

hostile

Evaluating and Selecting Market SegmentsShri Chimanbhai Patel Institute of Management and Research Page 17

Page 18: Nestlé is... - Essay Zone. Web viewNestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers ... That’s the importance of word

Five patterns of target market selection that can be followed are:

Single Segment Concentration: Concentrated Marketing where the firms gain a can strong knowledge of segments needs and acquires a strong market presence.

Selective Specialization: A firm selects a number of segments. Each objectively attractive and appropriate, there may be little or no synergy between the segment.

Product Specialization: The firm makes a certain product that it sells to several different market segments.

Market Specialization: The firm concentrates on serving many needs of a particular customer.

Full Market Coverage: The firm attempts to serve all customer groups with all products they may need.

5.2 Target segment of Maggi noodles

Shri Chimanbhai Patel Institute of Management and Research Page 18

Page 19: Nestlé is... - Essay Zone. Web viewNestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers ... That’s the importance of word

Maggi 2 Minute Instant Noodles is already associated with convenience and taste and is currently accepted as a valid filling snack between meals. Maggi will continue to leverage its brand equity and target the following segments for this product.

Children and Teenagers’: This is a large segment and is Maggi’s stronghold. The age group between 4 and 14 years has largely similar tastes and is traditionally targeted by Maggi. These segments perceive Maggi instant noodles as a welcome change in taste from the regular Indian fare and they are fascinated by the curly shaped noodles. For these segments innovative products also have novelty value, however, certain dominant preferences emerge. Realizing this early, Maggi shifted focus from the lady of the house to the end consumer i.e. children themselves ending up as the market leader of the instant noodles segment. Early buy in of this segment will help Maggi to sell in other segments in future.

Studying Age: The studying age segment though not traditionally targeted specifically has been devouring Maggi 2 minute noodles. The proposition of convenience of cooking as well as that of a tasty filling snack attracts this segment which due to erratic schedules keeps missing their regular meals.

Office Goers and working women: The Company also targeted this segment people because they were the one who needs refreshment time to time because of hectic schedule and with would take their minimal time. So by keeping this aspect into consideration, the company introduce the Cuppa mania, which is a type of noodle which takes less time to cook and satisfy the hunger as well.

Health Conscious People: The Company is also focusing on the heath aspect. They introduce Veg atta noodle for health conscious people. So they also launch Health Awareness campaign to educate consumers about the benefits of health food. They also sponsor health camps, publish health information and build awareness among the masses.

5.3 Positioning of Maggi

Shri Chimanbhai Patel Institute of Management and Research Page 19

Page 20: Nestlé is... - Essay Zone. Web viewNestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers ... That’s the importance of word

Maggi 2 Minute Noodles will continue with its current positioning of convenience and as a “fast to cook, good to eat” snack as this seems to be working well.

To prevent Top Ramen, the main competitor, from eating into its market share some product innovation is required as otherwise Maggi may get stereotyped as an unexciting product. Top Ramen is following a cost differentiation technique.

To deal with this Maggi has to position itself as a differentiated product. The market is very sensitive to taste and rejects any flavour it dislikes with Maggi having learnt it the hard way, thus the product cannot be greatly differentiated with on basis of taste.

On the other hand Maggi has to deal with the negative perception of Maggi has of being unhealthy in an increasingly health conscious market, a major threat in the current scenario.

Both these problems can be tackled by positioning Maggi as a snack with nutritional value. The recent launch of “Veg Atta Noodles” and “Dal Atta Noodles” with the promise of good nutritional value ventures in this area.

Shri Chimanbhai Patel Institute of Management and Research Page 20

Page 21: Nestlé is... - Essay Zone. Web viewNestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers ... That’s the importance of word

6. FOUR P’s OF MARKETING MIXMarketing Mix

A mixture of several ideas and plans followed by a marketing representative to promote a particular product or brand is called marketing mix.

The marketer’s task is to device marketing activities and assembles fully integrated marketing programs to create, communicate, and deliver value for consumers. Marketing activities come in all forms. McCarthy classified these activities as marketing mix tools of four broad kinds, which he called the four Ps of marketing; product, price, place and promotion.

Elements of Marketing Mix

Shri Chimanbhai Patel Institute of Management and Research Page 21

Page 22: Nestlé is... - Essay Zone. Web viewNestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers ... That’s the importance of word

6.1 PRODUCT

Definition:

A product is anything that can be offered to the market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information and ideas.

Maggi noodles Products In India: Nestle unleashed brand maggi in India Almost 25 years ago in 1983 with launch of its traditional 2 minutes noodles in its masala, tomato and chicken flavours, followed by its curry flavour some years down the line.

Maggi was launched in India at the time when instant noodle was not that well known a category.

When nestle India launched maggi in country, it used the tagline, ‘fast to cook and good to eat’, to not only promote the product’ but also to educate the ever growing aspirant consumer about the advantages of using it.

Products of Maggi Noodles:

A. MAGGI-2 minute noodlesB. MAGGI Vegetable atta NoodlesC. MAGGI Cuppa ManiaD. MAGGI Vegetable Multigrainz Noodle

Shri Chimanbhai Patel Institute of Management and Research Page 22

Page 23: Nestlé is... - Essay Zone. Web viewNestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers ... That’s the importance of word

MAGGI 2-MINUTE Noodles is one of the largest & most loved snack food brands that define the Instant Noodles category in India. We’ve recently launched two new flavors in the short space of two months – Thrillin Curry & Tricky Tomato Noodles. Blending Emotions with ingredients, the two new flavors deliver strongly on “Taste Bhi Health Bhi”. It is now available in 5 delectable flavours: Masala, Chicken, Tricky Tomato, Thrillin Curry & Romantic Capsica.

An offering that exemplifies ‘taste bhi health bhi’, MAGGI vegetable atta noodles is tasty because it is loaded with everyone’s favourites MAGGI ‘masala’ and healthy because it now has more real vegetables and is packed with the power of fibre. 85g of maggi vegetable atta noodles provides dietary fibre equal to 3 prepared ratios, 20g each.

Shri Chimanbhai Patel Institute of Management and Research Page 23

Page 24: Nestlé is... - Essay Zone. Web viewNestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers ... That’s the importance of word

MAGGI, the pioneer and creator of ‘Taste Bhi Health BHi’ has introduced another great testing and healthy variant in its popular range of MAGGI Noodles.

MAGGI Vegetable Multigrainz Noodle is made with Ragi, Corn, Jowar and Wheat. It offers the consumer multi-‘gun’ as it is a source of Protein, Calcium and Fibre and has added vegetables. It also provides the spicy test to their customers. The inspiration for the product comes from the growing consumer preference for a healthier lifestyle and the deep understanding that magi has developed about Indian food habits and culture.

Since in today’s fast-paced busy life, multitasking is a reality, you need something that fits with your rushed lifestyle – a product which is tasty and healthy, is convenient to prepare and eat and also satiates your hunger.

Maggi cuppa mania is a combination of all the above. In an easy to carry on-the-go cup format, MAGGI cuppa mania comes in two mouth watering variants – masala yo! And chilly chow yo!

It is packed with real vegetables and the goodness of calcium, just add garam paani to the noodles and voila! A cupful of delicious MAGGI cuppa mania is ready for you to eat.

Shri Chimanbhai Patel Institute of Management and Research Page 24

Page 25: Nestlé is... - Essay Zone. Web viewNestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers ... That’s the importance of word

6.2 PRICE

Introduction:

Price of the company’s product is considered as one of the 4 p’s of marketing. It is the most important aspect for any company in terms of decision making as it directly affects the sales and profit of the company.

These are the prices which are set by the company for the different flavours of MAGGI Noodles.

MAGGI 2 Minute Noodles Pack Size (gm) Price (Rs)Masala 50 5Masala 100 10Masala 200 20Masala 400 38Masala 600 54Masala 800 72Chicken 100 10Curry 100 10Tomato 100 10Vegetable Atta Noodles 100 13Vegetable Atta Noodles 400 50

As we talk about maggi, it is very popular now a day in all over the world and its main customers are children and youngsters. As we know that MAGGI Noodles price is not very high, but there are so many competitors in the market so company can not set price different from their competitors. Currently company is having the tough competition with Sun feast Yuppie Noodles and Foodles. One advantage of the company is that noodle’s packets are available in different size comparing it with the brand called Top Ramen.

Shri Chimanbhai Patel Institute of Management and Research Page 25

Page 26: Nestlé is... - Essay Zone. Web viewNestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers ... That’s the importance of word

6.3 PLACE

Place refers to the location where the products are available and can be sold or purchased. Buyers can purchase products either from physical markets or from virtual markets. In a physical market, buyers and sellers can physically meet and interact with each other whereas in a virtual market buyers and sellers meet through internet. Thus with the ease and options through which you make your product or service available to your customers will have an effect on your sales volumes.

Physical Distribution of Maggi noodles:

To keep up with the growing trends in the Noodles sector, an intensive dealer-distributor network is desired. Maggi has a well established distribution network.

Maggi Distribution Network -

Shri Chimanbhai Patel Institute of Management and Research Page 26

Maggi Factory

Factory Warehouse

Agent

Distributors

Wholesalers

Direct Retailers

End Consumers

Page 27: Nestlé is... - Essay Zone. Web viewNestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers ... That’s the importance of word

Thus from the chart it can be said that the distribution network is well spread almost everywhere in India, as it is easily available in all local stores, retail store etc.

But in order to strengthen the distribution, NIL should expand its market to Rural India with products targeted to the market. Thus this can be one of the way by which they can increase its volume of sales. So major focus should be done to this market as well.

Shri Chimanbhai Patel Institute of Management and Research Page 27

Page 28: Nestlé is... - Essay Zone. Web viewNestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers ... That’s the importance of word

6.4 PROMOTIONPromotion refers to the various strategies and ideas implemented by the marketers to make the end - users aware of their brand. Promotion includes various techniques employed to promote and make a brand popular amongst the masses.

Promotion can be through any of the following ways:

AdvertisingPrint media, Television, radio are effective ways to entice customers and make them aware of the brand’s existence.

Billboards, hoardings, banners installed intelligently at strategic locations like heavy traffic areas, crossings, railway stations, bus stands attract the passing individuals towards a particular brand.

Taglines also increase the recall value of the brand amongst the customers.

Word of mouthOne satisfied customer brings ten more customers along with him whereas one dissatisfied customer takes away ten more customers. That’s the importance of word of mouth. Positive word of mouth goes a long way in promoting brands amongst the customers.

Initial Strategies of Maggi

Maggi has faced lot of hurdles in its journey in India. The basic problem the brand faced is the Indian Psyche. Initially Nestle tried to position the Noodles in the platform of convenience targeting the working women. However, the sales of Maggi was not picking up despite of heavy Media Advertising.

To overcome this NIL conducted a research. NIL's promotions positioned the noodles as a 'convenience product', for mothers & as a 'fun' product for children. The noodles' tagline, 'Fast to Cook Good to Eat' was also in keeping with this positioning.

Shri Chimanbhai Patel Institute of Management and Research Page 28

Page 29: Nestlé is... - Essay Zone. Web viewNestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers ... That’s the importance of word

Print Ads

Maggi does not focus heavily on print media during its launch since its initial target audience was mothers and kids. But later on some advertisements in the print media were used to highlight the convenience factor of Maggi.

Events and Experiences

Hold the Online Maggie Recipe Challenge, wherein innovative recipes with Maggi Noodles as a base are invited. Winning entries are compiled into an e-cookbook which is published online

Shri Chimanbhai Patel Institute of Management and Research Page 29

Page 30: Nestlé is... - Essay Zone. Web viewNestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers ... That’s the importance of word

Sales promotion

The company also adopted sales promotion activity in order to achieve following mentioned objectives.

To introduce new products

To attract new customers and retain the existing ones

To maintain sales of seasonal products

To meet the challenge of competition

Various Tools used

Exchange schemes

Price-off offer

Coupons

Scratch and win offer

Money Back offer

Several initiatives were also taken by Maggi Noodles or Retailers sales promotion. This can be as follows

Maggi was distributed free in schools and offices to promote trial

Return gifts on empty packs

Maggi fun book and stickers with funky animal facts.

Shri Chimanbhai Patel Institute of Management and Research Page 30

Page 31: Nestlé is... - Essay Zone. Web viewNestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers ... That’s the importance of word

Public relation

 The Maggi Club - the children under 14 were invited by press advertisements and distribution of leaflets to become a member of maggi club by sending logos cut from 5 empty maggi wrappers. Maggi projected it as “maggi clubbers are fun lovers” and intended to use it as reference group.

Benefits offered to maggi-clubbers are various games like Snap safari game, Cap and mask sets, travel India game, Disney today comic. To obtain each gift the member has to send 5 wrappers as purchase proof.

Some special privileges were given to regular members time to time.

The company also Organized Maggi school quizzes and sketching.

RESULTS OF PR ACTIVITY:

Getting closer to regular customer.

Boosted the sales.

Making valuable direct marketing database.

Recently, again, they have started Maggi fan club. This time it is operating online and they are providing user name and password.

Displays

Shri Chimanbhai Patel Institute of Management and Research Page 31

Page 32: Nestlé is... - Essay Zone. Web viewNestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers ... That’s the importance of word

6.5 The Portfolio Matrix applied in MAGGI Noodles Products:

Shri Chimanbhai Patel Institute of Management and Research Page 32

Page 33: Nestlé is... - Essay Zone. Web viewNestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers ... That’s the importance of word

The Boston consulting group developed the business portfolio matrix-shows the linkage between the growth rate of the firm and relative competitive position of the firm, identified by the market share.

The Boston Consulting Group’sPorfolio Matrix

High

STARS(MAGGI Veg Atta

Noodles)

QUESTION MARKS(MAGGI Dal Atta Noodles)

CASH COWS(MAGGI Masala Flavour)

DOGS(MAGGI Tomato ,curry

flavour)

Low Low High

Relative Market Share

STARS:

Stars is the portion of the market where the market position and growth both are very high thus it is very good position of the company addressed by the product-MAGGI Veg Atta Noodles.

QUESTION MARKS:

Business in these areas states the weak market share with high growth rate. Here it requires the high cash requirement to come into the stars areas. Thus we can take the product is MAGGI Dal Atta Noodles.

Shri Chimanbhai Patel Institute of Management and Research Page 33

MarketGrowthRate

Page 34: Nestlé is... - Essay Zone. Web viewNestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers ... That’s the importance of word

CASH COWS:

Cash cows are with the strong market position and low growth rate. Such markets are usually in a position to make their product favourite with the low price in the market. Here the example is MAGGI Masala Flavours which is very popular in today’s market.

DOGS:

Here the marketing position and market growth rate both are very low and it is not profitable for the company. Thus company must have to stop the production of the products coming under this area.

Shri Chimanbhai Patel Institute of Management and Research Page 34

Page 35: Nestlé is... - Essay Zone. Web viewNestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers ... That’s the importance of word

7. CONCLUSION

Maggi though has been able to differentiate itself from other Noodles, MaggiBeing taken as generic to Noodles is hampering other extended product category. Competitors have high grounds to capture the market differentiating then from being Maggi. It makes others possible product category vulnerable if lunched under Maggi. So to avoid proliferation of brand and introduce new products to capture opportunities in other snacks and ready to eat product category NIL has to introduce new branding strategy. By doing so, NIL could avoid the draw backs associated with the Maggi brand. It could position new brand in competition with other competitor’s brand where there is no fit of product with the Maggi brand.

Shri Chimanbhai Patel Institute of Management and Research Page 35

Page 36: Nestlé is... - Essay Zone. Web viewNestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers ... That’s the importance of word

8. BIBLIOGRAPHY

http://www.nestle.in/brands/pdca/Pages/MAGGICUPPAMANIA.aspx

http://virtualaccuracy.com/2007/10/definition-of-marketing-mix-product-price-place- promotion/

http://www.managementstudyguide.com/marketing-mix.htm

http://www.maggi.in/maggi_multigrainz_noodles.aspx

http://www.maggi.in/two_minutes_maggi_noodles.aspx

http://www.maggi.in/vegetables_atta_noodles.aspx

http://www.maggi.in/cuppamania.aspx

www.maggi.in/maggi_multigrainz_noodles.aspx

www.slideshare.net/parves190/ maggi - noodles -8279990

http://www.scribd.com/doc/10552265/Nestle

http://www.maggi.in/range.aspx

http://www.nestleprofessional.com/united-states/en/BrandsAndProducts/Pages/default.aspx

http://www.maggi.in/maggi_multigrainz_noodles.aspx

http://www.maggi.in/two_minutes_maggi_noodles.aspx

Shri Chimanbhai Patel Institute of Management and Research Page 36