nestle- maggi strategy in india

8/3/2019 Nestle- Maggi Strategy in India

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Amarketingstrategyismosteffectivewhenitisanintegralcomponent

offirmstrategy,defininghowtheorganizationwillsuccessfullyengage

customers,prospects,andcompetitorsinthemarketarena.corporate

strategies,corporatemissions,andcorporategoals.Asthecustomercon-

titutesthesourceofacompany'srevenue,marketingstrategyisclosely

nkedwithsales.Akeycomponentofmarketingstrategyisoftento

epmarketinginlinewithacompany'soverarchingmissionstatement.

CONTENTS

Background

External Analysis

Market Analysis

Maggi Strategy

STEP 1

STEP 2

STEP 3

STEP 4

Conclusion and Quiz

Reference

STEP 5

STEP 6


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Misconceptions about Low middle incomecountry

1. The poor have no Money.

2. The poor are only concentrate on fulfilling basic needs.

3. No room for a new market entrant to make a profit.

4. The poor can not use advanced technology.

5. Global company will be criticized for exploiting the poor.

1. Background

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Swiss company founded 1866 by nestle

Products in 130 countries across theworld

Selling over a billon product everyday

Good food and good health of consumer

33

1. Background

Built the factory in 1961Now 7 factories and 4 branch of-fice

Growth aligning with Indias econ-omy

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First Move Advantage

How to react to

trendand consumersneeds

Now, Nestle has

various businesses inIndia.

NESCAFEMAGGI

MILK YBAR

MILOKIT KATBAR-ONEMILKMAID

NESTEA.

.

.

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1. Background

Instant Noodles In-dustry

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India shows 8.6% growth in economy-It is result of rapid growth in service industry and industrial activi-ty

-Trade, finance, manufacture sector scored highest percentage.

2. External Analysis - Eco-nomic

GDP growth in India, otherlarge emerging economies

and the OECD

Source : OECD

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From US$ 556 per annum in 2003 to US$ 1150 by2015

- Huge consumption demand in urban area

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Rise in disposable income in

India

Source : Euro monitor, BRICs Report (GoldmanSachs)

2. External Analysis - Economic

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Urban Pro-

file Segments of middle and rural class

Introduce of low-priced goods in smallerpacksizes pushed the demand in town

77

Source : Statistical Outline of India (2005-2006)

opportuni-ty

ConsumerProfile

Source : Statistical Outline of India (2005-2006)

Rapid urbanization rising per capita income, have caused rapid growth andchange in demand patterns

2. External Analysis - Economic

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Indian culture based on cultural di-

versity

Various race by regional , class basis

Various cultural background by reli-gionMultilingual culture

currently 18 language is designated asofficial language

NEED ADAPTA-TION

2. External Analysis - Cultural

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Example of Adaptation : Mac don-ald

-Mac Veggi

Began bugger with mixture ofIndian spices

Exclusive in India

-Mac Chicken Maharaja

Double Chcken buggerin india instead of Big Mac

Exclusive in India

2. External Analysis - Cultural

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Lifestyle of the urban Indian

Having his dinner latefrom around 8:30 pm to as late as 11

pm

Huge demand a convenient snackbetween lunch and din-

ner

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3. Market Analysis - Life-style

A key need for a product

Providing good quality food and conve-nience

Taking less time to cookGetting fast relief from hunger

This market needs to segment by area and age group be-cause of preference of consumers.

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3. Market Analysis A Launch ofMaggi

A launch of Maggi in 1983

Faced big obstaclesCompetitors of Ready to eat foods

Local Foods

Limitation

Not likely to accept Maggi as a meal insteadof Roti or Rice

on the working women

Reposition-ing

on Children andTeenagers

Targeting

Targeting

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The leading brand in the instantnoodles segment in India

Enjoying a market share of79.3%

Being the pioneer in the noodles market hasgiven it a first movers advantage over oth-er brands

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3. Market Analysis - Sit-uation

Regularly coming up with new flavors

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Strengths Weakness

Market Leader

Highest advertising share

Emotional relationship with theconsumer

Health related issues

Heavily dependent on one flavor

Opportunities Threats

A size of The instant noodlessegment is growing

Rapid economic growth and ris-ing disposable incomes

Competitive pricing (Top Ramen)

Repositioning of Top Ramen on ahealth platform

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3. Market Analysis -SWOT

SWOT Analysis of

Maggi

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.

'Don't be a noodle, be a Smoodle'launched in 1991.

A cost differentiation

Growing popularity of Top Ra-men

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3. Market Analysis - Compe-tition

Top Ramen

Product Variety

Packet Noodles: Macho Masala, FunkyChicken, Oye Tomato, Curry Smoodles

Cup Noodles: Spicy Vegetable, TangyChicken

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launched India's first instant pastasnack Sunfeast Pasta Treat in 2005

Made from high protein Durum wheatNot fried

Product VarietyMasala, Tomato and Cheese, Sour

Cream Onion and Cheese.

Promoted as a healthy alternative to instantnoodles

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3. Market Analysis - Competi-tion

ITC SUNFEAST PASTA

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New products Veg Atta Noodles and Dal Atta NoodlesExtension on line of Cup Noodles/Mug Noodles

Upgrade the existing product features

Existing products New products

Existing Markets

Market Penetration(Upgrade existing vari-ants of Maggi)

Product development(Introduce new variantsof Maggi)

New Markets

Market Development(Finding new markets forexisting variants of Mag-gi)

Diversification(Launch totally newvariants of Maggi in to-tally new markets)

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4. Maggis Strategy Whereto go

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HighPrice

LowPrice

Healt

hy

Un-

healthy

HighPrice

LowPrice

Inconve-nient

Conve-nient

Target TargetChildren and Teenagers (Age

4~14)

Studying Age (Age 18~22)

Young Adults (Age 15~29)

FocusingonConve-nience

FocusingonTaste

CUP OMAGGIMAGGI 2

MINUTENOODLES

Position-

ing

Position-

ing

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4. Maggis Strategy - STP

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Product Development Strategy

aligning with Consumersneeds

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4. Maggis Strategy 4P Prod-uct

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Maggi 2 Minute Noodlesprice

Perceived as a snack, not as a meal /

Source : Nestle India

The most popular product: Masal

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4. Maggis Strategy 4PPrice

Various options consumer can

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The rising popularity of the mall-culture in the urban and semi-urbanareas

2020

4. Maggis Strategy 4P Place

India Dried Pasta & Noodles off-trade distributionchannels, by value, 2005-2006 (%)

Source : Denis Mason, Datamon-itor

The average Indian living in urban area

Still preferring shopping through the traditional grocers or ki-ranas

Developing networking with the traditional grocers and mall

Distribution of free sample of Maggi products

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Sales Promotion in schools and offices

Continuous market research focusing on health andtaste

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4. Maggis Strategy 4P Pro-motion

Declined of sales in 2000s

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Advertisement focusing on Children

Taste good, Good for body

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Need better understanding the changing lifestyles of modern India

and anticipating consumer needs in order to provide convenience,taste, nutrition, and wellness through its products.

5. Conclusion and Quiz

Low Level

A name of Nestle Noodle Brand is Neggi.

Middle Level

The strategy is adaptation when they launched Maggi in India.

High Level

A launch of New products Veg Atta Noodles and Dal Atta Noodlesis diversification.

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6. Reference

, , India, Blue Ocean for Korean Entrepreneurs -Fo-

cused on food and Telecom Industries-, 2006.12

, Country Profile: , 2010

, :

C.K. , ., , 2006.5

Business Maps of India, Top Noodle Brands in India, 2011.6

The Economic Times, Maggi losing instant noodles market share in India

to new entrants, 2010.8

Instant Noodles market set for meteoric growth 2011.5

Instant noodles: Rivals turn the heat on Nestle's Maggi, 2010.6

Maggi losing out to new entrants: Nielsen, 2010.8

Euro Monitor, Special Report: Diverging demographic prospects for BRIC

consumer markets, 2009,7

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Website

(Government of India Ministry of Commerce & Industry

Department of Commerce), http://www.commerce.nic.in

, http://www.nestle.com/

, http://www.nestle.in/

, http://www.maggi.in/

, http://statisticsofindia.com/

, http://www.businessweek.com/

OECD, http://www.oecd.org/

, http://www.mcdonaldsindia.com/

Top Ramen , http://www.topramen.in/

Sunfeast Pasta http://www.sunfeastpastatreat.com/

6. Reference

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http://www.commerce.nic.in/http://www.nestle.com/http://www.nestle.in/http://www.maggi.in/http://statisticsofindia.com/http://www.businessweek.com/http://www.oecd.org/http://www.mcdonaldsindia.com/http://www.topramen.in/http://www.sunfeastpastatreat.com/http://www.sunfeastpastatreat.com/http://www.sunfeastpastatreat.com/http://www.topramen.in/http://www.topramen.in/http://www.mcdonaldsindia.com/http://www.mcdonaldsindia.com/http://www.oecd.org/http://www.oecd.org/http://www.businessweek.com/http://www.businessweek.com/http://statisticsofindia.com/http://www.maggi.in/http://www.nestle.in/http://www.nestle.com/http://www.commerce.nic.in/http://www.commerce.nic.in/

nestle- maggi strategy in india

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