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