Nestle Maggi As A Leader Strategies

SOHIL GALA ROLL NO: - 352

Nestle Maggi as a Leader Strategies Maggi was the first noodles product in India and it was accepted by majority of its target market which at the time of launch lay in the urban cities of India but with time Maggi has substantially used different strategies to expand its existing market space and by doing so it has kept CHALLENGERS like Top Ramens Smoodles at bay and maintained its position as MARKET LEADER. For beating the challenge from different domestic and international challengers Nestle Maggi has used the following steps to beat the competition. 1. Strong Customer Relations: The campaign designed by Nestlé for Maggi’s silver jubilee hopes to work on the brand’s strong consumer connect through television, the Internet and print. The jingle gets a prominent play in the television campaign. Nestlé, India’s largest food products company, has decided not to litter the sky with hoardings on the occasion. Instead, the ads will play on nostalgia. Consumers who first sampled the brand as kids now run households. The campaign seeks to strengthen the association. Thus, customers will be invited to share their “Maggi moments” with the company. If the company likes the way you prepare Maggi, you could find your photo on Maggi packs. A new website called www.meandmerimaggi.com is also in the works. 2. Good Packaging and Strong Dealer Vendor Relations: Convenience was the unique selling proposition of Maggi when it was launched 25 years ago. For the first time, consumers got something that was hygienically packed and convenient to prepare. It was also the first fusion experiment on food in India.

3. Continuous process innovation: Instant noodles was an entirely new category in the country, but it was given an Indian twist. Maggi came in four variants: Masala, chicken, sweet & sour and capsicum. Of these, only two have survived — masala and chicken which sells largely in the eastern states. Masala continues to be the flagship flavour. In the days that followed, it experimented with more variants, like a garlic- and onion-free one for Gujarat. Some of these still exist, others were discontinued. The turning point came in 2005, when Nestlé came out with Maggi atta (whole-wheat flour) instant noodles. All over the country, atta is considered healthier than maida or refined flour which the company was using from day one. This helped the company take the health platform, though Nestlé General Manager (food business) Shivani Hegde insists that the product never ran the danger of being classified junk food. It was then that it added the tagline, health bhi, taste bhi (health as well as taste).

SOHIL GALA ROLL NO: - 352

4. Repositioning as a healthier snack: “It is no longer an aspirational product for any socio-economic category of consumers,” says Hegde That was also the time when Nestlé was repositioning itself worldwide as a health and wellness company. At the grassroots level, Maggi started associating with quiz contests and other such events connected to mental and physical wellbeing. This positioning gave Nestlé the platform to launch more products under the Maggi brand. It already had Maggi soups, sauces and coconut milk in the market, but given the strong equity of the brand, Nestlé could now extend it to newer categories. Thus, it recently came out with fried masala paste. In 2008, two brand extensions — Maggi Bhuna Masala and Maggi Cuppa Mania Instant Noodles 5. Price Incentives: The company is taking no chances and is extending its distribution reach to smaller towns and cities. Maggi happens to be Nestlé’s most widely distributed brand in the country. Through independent channels, it reaches those villages where the company has no presence, according to Hegde. This is also the time that Maggi’s value-for-money pack priced at Rs 5 is expected to come handy. (The regular pack comes for Rs 10.)

6. Capturing New Customer Base: Maggi realised that one of the reasons for a low market share in Gujarat was that most of gujaratis do not eat garlic and Onions so for Gujarat Maggi has come up with a special product which is devoid of onions and garlic and marketed it as Jain Maggi. This helped them gain a completely unconquered market of Jain Noodle eaters.

Hence by using these Strategies magi has been able to consolidate its position as MARKET LEADER.