Marketing Strategies

Maggi Nestle’s Problem Child?

Problems of the “Problem Child”!

Problems of the “Problem Child”!  “New 

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Improved” Maggi

In 1997, Nestle India launched “new improved” Maggi. “New improved” – thinner noodles and a different formulation. Maggi in for a shock!

Problems of the “Problem Child”!  Maggi  

Macroni

Launched in mid-97 Rs. 10 million ad expenditure.

Problems of the “Problem Child”!  Soup   

Segment

Lost its leadership status New entrant KNORR Knorr soup cornered 55% market of 425 tonne soup market.

Problems of the “Problem Child”!  Ketchup  

Segment

Tough competition HLL’s Kissan brand had almost reached Maggi’s market share figures.

Problems of the “Problem Child”!  Other 

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Products

Poor Peformance of other products under the umbrella. Other Products – instant foods, seasoning cubes and pickles. Limited sales scattered over different regions of the country.

Even after more than 15 years, Maggi a loss making proposition for Nestle?!?!

Maggi’s History

Maggi’s History 

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Established in 1866, Switzerland based holdings. Group produed beverages, milk products, processed foods, cooking aids, bakery products, chocolates and confectionaries. Present in 83 countries with 509 factories. In 2001, erned revenue of $50 billion and net profit of $3.9 billion.

Maggi’s History 

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Nestle Group entered India in 1959 through Nestle India. Operation began in 1962 in Moga, Punjab – milkmaid 1964, produced Nescafe at Moga, Punjab.

Maggi’s History 

Nestle products fell into 4 broad categories. 

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Milk Products – Everyday dairy whitner, Milkmaid, Desert mixes etc. Beverages – Milo, Nescafe, Nescafe Sunrise, etc. Prepared Dishes & Cooking Aids – The Maggi range. Chocolates & Confectionaries – Barone, Munch, Kitkat etc.

Maggi’s History 

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In 2001 Nestle emerged as India Third largest company after HLL & Amul. Success due to strong brands and brand building initiative. Maggi entered Indian market in 1982.

STORY OF Maggi

Two Pronged Strategy Convenience

Plank Fun Plank

Marketing Strategies      

Brand Awareness Gifts(Toys & Utensils) Commercials Televisions Programs Sponsorships No Direct Communication

Brand Extension  

Maggi Soup- 1988. Indian Ethnic Foods    

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Pickles Sambhar Dosa Batter Vada Batter

Macroni

Brand Extension   

Maggi Cocunut Milk Maggi Tamarind Sauce Maggi Chinese Noodles

Line Extension   

Sweet Maggi-1993 Maggi Tonite Special Tamato and Curry Maggi

BRAND

REJUVINATION

THE “PROBLEM CHILD”       

Unrealistic Targets Inadequate Data High Prices Change of Taste Loss of Brand Equity Could Not Maintain Market Leadership Less Innovative

THE “PROBLEM CHILD”      

No Variety No Significant Difference No Research High Expenditure No Serious Brand Extension Frequent Changes

SUGGESTIVE STRATEGIES 

Mobile Defense Pricing

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Test Marketing

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Proper SWOT Analysis

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Target Marketing Shift from product awareness to product preference

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Open Disscussion…

Thank You !

 Presented

by:

Anshul Sogani Alpa Jain Jhalak Khandelwal Rakesh Shukla