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Maggi Noodles. Alka Baid Arjun P.R Avishek Singal Ratnavel Subramanian. AGENDA. Overview of Maggi Noodles Positioning and repositioning Advertisement Sales promotion Analysis of the product Competition Strategies adopted to tackle competition Distribution strategy Hypotheses

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maggi noodles

Maggi Noodles

Alka Baid

Arjun P.R

Avishek Singal

Ratnavel Subramanian

  • Overview of Maggi Noodles
    • Positioning and repositioning
    • Advertisement
    • Sales promotion
  • Analysis of the product
  • Competition
    • Strategies adopted to tackle competition
  • Distribution strategy
  • Hypotheses
    • Justification
    • Instruments of data collection
  • Analysis of data
  • Net take away
overview of maggi
Overview of Maggi
  • Created in 1863 by Julius Michael Johannes
  • Acquired in 1947 by Nestle
  • Introduced in India in 1982
  • Top Ramen - the first competitor in 1990
  • Introduced new variants in 2005
  • India the largest consumer of Maggi noodles
positioning and repositioning
Positioning and Repositioning
  • Positioning
    • Initially introduced as easy to cook
    • Focused on working women
  • Repositioning
    • Focused shifted to children
    • Focused on health development
  • Variety of TV commercials
    • Constantly adapting
    • Both customer and consumer centric
    • Sponsoring famous television shows
      • Hum log in DD
  • Social media
  • Popular taglines
    • Fast to cook, good to eat
    • Mummy, I’m hungry
    • Taste bhi, health bhi
  • “Me and meri Maggi” campaign
sales promotion
Sales Promotion
  • Sampling
    • Schools and offices (Targeting kids and working crowd)
  • Return gifts on empty packets
  • Maggi club
    • Discounts on movie tickets for members
    • Organized quizzes and sketching competition
  • Discounts offered to retailers
    • 7% discount on 6-pieces pack
    • 5 rupee discount on 8-pieces pack
analysis of the product
Analysis of the Product

STPD analysis

  • Segmentation
    • Maggi created a separate segment of instant noodles
  • Target
    • Kids, youth and working crowd
    • Basically all ‘convenience-savvy time misers’
  • Positioning
    • 2-minute noodles
    • Snack market
  • Differentiation
    • Variety of flavors
    • Packaging
analysis of the product1
Analysis of the Product

SWOT analysis

  • Strength
    • Established family brand – market leader
    • Global corporate support
    • Marketing and distribution channels
  • Weakness
    • No authentic noodles
  • Opportunity
    • Unexploited rural market
    • Growing packaged food industry
    • Increasing brand consciousness
  • Threat
    • Health issues
    • Generic competition
analysis of the product2
Analysis of the Product

4P analysis

  • Product
    • Instant noodles
    • A large pool of variants
  • Price
    • Affordable
    • Inflation pricing strategy
  • Promotion
    • Initially – Working women
    • Kids and youth
    • Health centric
  • Place
    • Wide distribution network – High availability
    • Satisfactory distributors and retailers

List of major competitors

  • Top Ramen
    • Nissin
    • Second largest noodles brand
  • Sunfeast Yippee
    • ITC
    • Fresh competitor
  • Horlicks Foodles
    • GSKCH
    • Fresh competitor
strategies to tackle competition
Strategies to tackle competition
  • Maggi vs Top Ramen
    • Maggi – first
    • Maggi was more established
    • Maggi changed the recipe
      • Top Ramen sees a short rise in sales
    • Maggi rolls back to the old recipe
      • Top Ramen is back to square one
    • Maggi obtained the health platform
    • Major strategy by Maggi was “Do Nothing”
      • Strengthened its distribution channels
      • TopRamen’s lack of competitive promotion
strategies to tackle competition1
Strategies to tackle competition
  • Maggi vs Yippee
    • Differentiation of Yippee:
      • Shape of the noodle cake
      • Ability to consume long after cooking
    • Strength of Yippee
      • Distribution of ITC
      • Umbrella branding strategy
      • ITC Conglomerate
    • Went head-on to battle against Maggi
distribution strategy
Distribution Strategy
  • Traditional distribution
    • Carry Forward Agents (CFA)
    • Distributors
    • Wholesale dealers
    • Retailer
  • Modern distribution
    • Designated distribution
    • Retail store chains
distribution strategy1
Distribution Strategy
  • Nestle offers 6% margin for distributors
  • Terms of sale:
    • Distributors pay in advance
    • Retailers buy on credit
  • Variety of distributors
    • Urban
    • Rural
  • Maggi is perceived by the consumers as a ‘quick-meal’.
  • Maggi is considered healthy by both mothers and other consumers.
  • Masala Maggi has reached the minds of consumers more than its other variants.
  • Maggi was never seen as a substitute to regular Noodles.
  • H1
    • Product used over a long time
    • Recent advertisements
  • H2
    • Major consumer – Kids
  • H3
    • Masala maggi – available since launch
  • H4
    • Positioning of Maggi was always a snack
instrument of data collection
Instrument of data collection
  • Questionnaire
  • Sample size:
    • 100~120
    • 40 parents
analysis of data
Analysis of data
  • Q1 : Which of following would you prefer most for a snack? (Rank among 9 options)
analysis of data2
Analysis of data
  • Q2 : Which of the following do you thing qualifies as a “quick-meal”? (Rank among 9 options)
analysis of data4
Analysis of data
  • Q3 : What brand comes to your mind when asked about “instant-noodles”?
    • 119/121 responses - Maggi
analysis of data5
Analysis of data
  • Q4 : Which of the following do you think are varieties of Maggi? (Check boxes containing both correct and wrong options)
analysis of data6
Analysis of data
  • Hypothesis 3 has been proven wrong
    • “Vegetable Atta noodles” is almost as popular as Masala Maggi
analysis of data7
Analysis of data
  • Q5 : Between Maggi and regular noodles (served in Fast Foods/Restaurants), rate the parameters given below. (On a scale of 5. 1 being the lowest and 5 being the highest)
analysis of data9
Analysis of data
  • Q5 (part 2)
analysis of data10
Analysis of data
  • Q5 (part 2)
analysis of data11
Analysis of data
  • Hypothesis 4 proved Right
    • The two distribution of rating shows that the products are not complimentary
analysis of data12
Analysis of data
  • Q6 : Would you like to consume Maggi on a regular basis?
analysis of data14
Analysis of data
  • Q7 : If yes, at what situation would you like to have “Maggi” Noodles?
    • Regular day Breakfast
    • Evening Snack
    • When you’re in a hurry
    • For a proper meal
    • A late night snack
  • Hypothesis 1 has been proven wrong
    • Even those who consume/feed Maggi regularly are doing so not because it’s filling (Meal)
analysis of data17
Analysis of data
  • Q8 : If No, what are the possible reasons behind?
    • It’s not tasty
    • It’s not healthy
    • Expensive
    • I like variety
analysis of data19
Analysis of data
  • Hypothesis 2 has been proven wrong
    • Both the entire population and the parents do not consider Maggi healthy
net take away
Net take away
  • Maggi has spent loads of time, work and money to imprint its brand in the minds of the consumers
  • Maggi noodles is not considered healthy at all
  • Vegetable Atta noodles and Masala maggi are the most popular variants of Maggi
  • Maggi noodles has not yet been perceived as a meal
  • Maggi noodles has not been seen a substitute for regular noodles