Maggi Noodles
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Transcript of Maggi Noodles
Maggi NoodlesAlka BaidArjun P.RAvishek SingalRatnavel 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
▫ Justification▫ Instruments of data collection
• Analysis of data• Net take away
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
▫ Initially introduced as easy to cook
▫ Focused on working women
• Repositioning
▫ Focused shifted to children
▫ Focused on health development
Advertisement
• Variety of TV commercials
▫ Constantly adapting
▫ Both customer and consumer centric
▫ Sponsoring famous television shows
Hum log in DD
• Social media
Advertisement
• Popular taglines
▫ Fast to cook, good to eat
▫ Mummy, I’m hungry
▫ Taste bhi, health bhi
• “Me and meri Maggi” campaign
Few advertisements
Me and meri Maggi
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
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 ProductSWOT 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 Product4P 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
Competitors
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
•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 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
•Traditional distribution▫Carry Forward Agents (CFA)▫Distributors▫Wholesale dealers▫Retailer
•Modern distribution▫Designated distribution▫Retail store chains
Distribution Strategy
•Nestle offers 6% margin for distributors
• Terms of sale:
▫Distributors pay in advance
▫Retailers buy on credit
•Variety of distributors
▫Urban
▫Rural
Hypotheses
1. Maggi is perceived by the consumers as a ‘quick-meal’.
2. Maggi is considered healthy by both mothers and other
consumers.
3. Masala Maggi has reached the minds of consumers more
than its other variants.
4. Maggi was never seen as a substitute to regular Noodles.
Justification
•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
• Questionnaire
• Sample size:
▫ 100~120
▫ 40 parents
Analysis of data• Q1 : Which of following would you prefer most for a snack? (Rank among
9 options)
37%
20%
17%
5%11%
3%
3%2% 2%
Distribution of people's first choice of snacksSamosaVadaKachoriHaldiram's snacksBiscuitsCakesInstant NoodlesChocolatesChips
Analysis of data• Q1
Samosa
Vada
Kachori
Haldira
m's
snac
ks
Biscuits
Cakes
Insta
nt Noodles
Chocolat
es
Chips
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
Distribution of people's first 3 choices of snacks
Rank 1Rank 2Rank 3
Analysis of data• Q2 : Which of the following do you thing qualifies as a “quick-meal”?
(Rank among 9 options)
26%
31%12%
10%
7%
2%
2% 2%7%
Distribution of people's first choice of quick mealOatsCeralsDosa/ IdlyRotiFried RiceInstant NoodlesSandwichPav bhajiHot Dogs
Analysis of data• Q2
Oats
Cerals
Dosa/ I
dlyRoti
Fried R
ice
Insta
nt Noodles
Sandwich
Pav b
haji
Hot Dogs
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
Distribution of people's first 3 choices of quick meal
Rank 1Rank 2Rank 3
Analysis of data• Q3 : What brand comes to your mind when asked about “instant-noodles”?
▫ 119/121 responses - Maggi
Analysis of data• Q4 : Which of the following do you think are varieties of Maggi? (Check
boxes containing both correct and wrong options)
Masala Maggi; 109
Vegetable Atta
Noodles; 98
Vegetable Multi-grainz; 69
Chicken; 58
Tricky Tomato; 25 Thrillin Curry; 5
Analysis of data
•Hypothesis 3 has been proven wrong▫“Vegetable Atta noodles” is almost as popular as
Masala Maggi
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)
Tasty Healthy Worth the money
Easily available
Quick to Prepare
0.00
1.00
2.00
3.00
4.00
5.00
Mean Rating for Maggi
Mean Rating
Analysis of data• Q5
1 2 3 4 50
102030405060708090
100
Perception of Maggi among the minds of customers
TastyHealthyWorth the moneyEasily availableQuick to Prepare
Num
ber
of p
eopl
e
Analysis of data• Q5 (part 2)
Tasty Healthy Worth the money
Easily available
Quick to Prepare
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
Mean Rating for Regular Noodles
Mean Rating
Analysis of data• Q5 (part 2)
1 2 3 4 50
10
20
30
40
50
60
Perception of Maggi among the minds of customers
TastyHealthyWorth the moneyEasily availableQuick to Prepare
Nu
mb
er o
f p
eop
le
Analysis of data
•Hypothesis 4 proved Right▫The two distribution of rating shows that the products
are not complimentary
Analysis of data• Q6 : Would you like to consume Maggi on a regular basis?
26%
74%
Percentage of people who would consume Maggi regulalry
YesNo
Analysis of data• Q6
28%
72%
Percentage of parents who would consume/feed Maggi regulalry
YesNo
Analysis of data• Q7 : If yes, at what situation would you like to have “Maggi” Noodles?
i. Regular day Breakfastii. Evening Snackiii. When you’re in a hurryiv. For a proper mealv. A late night snack
HEALTHY TASTY MEAL QUICKRegular breakfast 1 0 1 0Evening Snack 0 1 0 0When you're in a hurry 0 0 1 1For a proper meal 1 1 1 0A late night snack 0 1 0 1
Analysis of data
•Q7
6%
46%
18%
30%
Maggi as perceived by frequent consumers of the product
HEALTHYTASTYMEALQUICK
Analysis of data
•Q7
11%
33%
22%
33%
Maggi as perceived by the parents who consume/feed frequently
HEALTHYTASTYMEALQUICK
Analysis
•Hypothesis 1 has been proven wrong▫Even those who consume/feed Maggi regularly are
doing so not because it’s filling (Meal)
Analysis of data
•Q8 : If No, what are the possible reasons behind?i. It’s not tastyii. It’s not healthyiii. Expensiveiv. I like variety
27%
7%64%
2%
Reason why people would not consume Maggi regularly
I prefer more va-riety each timeIt's not tastyIt's not healthyIt's expensive
Analysis of data
•Q8
13% 5%
78%
5%
Reason why parents would not consume/feed Maggi regularly
I prefer more variety each timeIt's not tastyIt's not healthyIt's expensive
Analysis of data
•Hypothesis 2 has been proven wrong▫Both the entire population and the parents do not
consider Maggi healthy
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