Group Members: Praveen Kumar B, Shreyansi, Swapnil and Anish

Draft a 6 stage pricing stage for Maggi

Selecting the pricing objective:

Our team recommends will be to use product quality leadership.
Rationale: Maggi market penetration is highest. We have been able to create a brand value in the
market and customer recognises us. A loss of 100 billion rupees has occured to maggi. At the
same time quality is the thing which has been questioned. Resolving the quality issue and taking
the benefit of lead.

Determining the demand:

We suggest to use statistical analysis longitudinal as well as cross sectional way. The pattern
which will arise from data can help us to find the proximity area of our product.
Rationale: being into the market from a really long time , will definitely give us a long range of
data base to the maggie. Analysing that huge amount of data will help in testing our strategy
hypothesis and accuracy rate will be high.

Estimating Cost
We can use Target costing method.
Rationale: In current circumstances, it’s important for us to examine each cost element-design,
engineering, manufacturing, sales. So, the final cost projection are in the target cost range.

Analysing competitors’s costs, prices and offers

After analysing the competitor’s cost, for example Patanjali claim that they are providing better
product than maggi at less price, maggi shouldn’t get influenced. It has a wide customer range.
They can keep the cost on higher side. However, it should be in purchasings lit of the customer
in a specific geography and quality should be kept at priority.

Selecting a Pricing Method

We believe perceived value pricing will be an appropriate price setting method for current
situation.
Rationale: we need to deliver more value than the competitor and to demonstrate this to the
perspective buyers.

Selecting the final price

Geographical pricing and special event pricing methods can be used. Ith the amount of data in
the hand they can configure out that in what occasions, it was getting preferred and thus use it for
cost adaptation. For example: Adventurous place, sports events or social gathering can get a cash
back coupons.
 Nestle Maggie – Communication Strategy

Case Question: Draft a new relaunch value communication strategy for Maggi.

Nestle Maggie is a great case amongst many other products where the product is criticized to
have used composed of certain elements beyond the permissible limits which could cause serious
ill effects to consumers who consume them. In the case of Maggie the product was known to
have Monosodium Glutamate at 17 parts per million from the standards where it was to be 0.01
parts per million and also presence of lead (Pb) While the company came up with a statement
where these elements came up in the natural course of preparation and they are not a part of the
composition.

Maggie was well positioned during 2009 with unique positioning strategy such as “Me and
Meri Maggi”, “Meri Maggi: Two Minute Mein Khushiyan” and “Fast To Cook Good To
Eat” the tag lines where very catch and the product took real pace in one of the best marketed
and desired products in people's mind. The product was positioned best for consumers who had
conservative food habits apart from traditional Indian dishes. The initial target customers were
working women who didn’t have time to prepare meals.

Maggie as a product after the lab test Maggie had to be withdrawn and production of Maggie to
be held until there is clearance again.

Given the set back that Maggie faced in 2014 it lost trust of the consumers and competitors made
good way to brand their products as the best one in the market which is healthy and certified by
the Indian Food Standards.

Given the above scenario the Maggie had to first lift the Maggie ban by the government
authorities and has to be accredited by the labs that it is safe to consume.

Unlike the communication strategy of a new product this communication strategy is not about
introducing the category or functionality of the product. The product is already known for its
instant noodle making food product. The relevance with the product is well clear in the minds of
the consumers. The Communication strategy emphasizes of re-establishing the product in the
market and help regain the trust of the consumers.

As part of the communication strategy the Hierarchy of Effects model can be the best options to
use in this case
 1. Awareness: At a cognitive stage ensure that the basic aspects of the product of quality
and safety are made clear in the consumers mind.

2. Knowledge: The consumer is to be made knowledgeable on the usage of the product

such as how to prepare and usage specifications of the do's and don'ts of the product

3. Liking: Through marketing efforts demonstrate how the product is like by the
consumers and what is known for such as taste of the product, texture and how it feels like
eating and aesthetic feel of the product.

4. Preference: Establish relevance with the product and make the product as first choice for
its functionalities of 2 minute noodles. Emphasize on ease of use and experience of
consuming the product. Ensure top of the mind recall

5. Conviction: Keep the promotions of the product on a regular pace so that the customers
tend to buys the product more and more often.

6. Purchase: Ensure that the product is available at consumers reach. Understand the
consumers buying pattern and behaviour in terms of periodicity of buying, place of buying,
Visibility of the product, Ease of purchase at various outlets, cost of the product.

The awareness has to include a message where people had to trust the product for its safety first
and then there has to emotional connect with the product to regain the previous market share.
Using the right communication mix, Maggie has to also time the relaunch at the right time.
While Maggie was still being missed as one of the products which was very tasty and could be
very easily prepared. Nevertheless it is important for the brand to make their presence back
before the consumers forget the brand and switch entirely to a new product.

It had to big re-entry with a celebration in all the media channels of coming back in the market as
a fresh product which took place in the hearts of the people. Posters and ads are to be released on
“Maggie has Come Back”. It should come up with campaigns and take a leap of faith on trusted
customers in building the story on how they missed the Maggie product and how they liked the
new product that has come back in the market. It is necessary that the product gains positive
traction.

It has to tie up with e-commerce platform to sell the product aggressively and create place in
physical and online spaces to make the product available.

Comeback of the Maggie is to rebuild consumer trust and also maintaining the consumer trust in
all means to help the consumer believe in the product and the company.

Maggie has to prepare a long term plan on how would it use market research data in gaining the
previous market share and can be known as better product than others. The aspect of right time
and right place with pinch of being a part of larger celebrations in the family has to do all the
work.