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Moreover, the growing popularity of Maggi has spawned many related products as well,
leading to the rise of a complete umbrella brand in the name of Maggi. Such a company is
bound to have more strengths then weaknesses. So without further ado, let us delve in the
SWOT analysis of Maggi.
Strengths in the SWOT analysis of Maggi
1. With the presence in different product categories under the umbrella brand of Maggi
with large SKU’s (Stock keeping unit).Maggi have edge over its competitors.
2. 1st Mover Advantage: Maggi has established itself a pioneer in changing the eating habits
& acceptance of Noodles as easy meal. Although now the market is full of local &
national players in different product categories but still Maggi Holds market
leader place.
3. High Customer Pull: With its distinguished promotion, strategies & branding hence
creating strong customer connects had helped Maggi to have High TOMA score.
4. Distribution Channel: Robust & well-established distribution channel of the parent
company (NESTLE) is helping in making the product available in the Market.
5. Popularization of Maggi in Restaurants & Road side stall, Canteens is contributing to its
success.
6. With rich history and financially stable parent company is on the growing path.
1. Risk of Over Dependence: Company is playing hard on the risk of over dependability on
Maggi Noodles, as 57% (2014) of the revenue of the brand Maggi comes from Noodles
knowing the fact that their market share has been decreased significantly (in 2012 “84%”
to 63% in 2014).Although with more & more competitors the market size is still on the
expansion mode.
2. Ill effects of Maggi: Awareness about ill effects of Maggi is gaining momentum with
more & more educated class becoming more health conscious.
1. Brand Extension: Maggi can expand its product categories by venturing out in corn
flakes, Chips & Pickles Although it failed in 2003 but now with presence of local &
national players in this product category,company can reap the benefits).
2. Although it’s been used majorly by the educated class in order to save their time what if
the long potential rural markets can also be penetrated with the innovative strategies
pertaining to consumers engagement with the brand.
3. Also Company can target the Restaurants chains by offering some customized or special
offerings to make it more short of part of the daily life of the consumers.
1. Competition: Tough competition from the local & national player is the area of concern
for the company.
2. Negative word of mouth: Propagation of ill effects of Maggi noodles through online &
Social Media possess threats to the existence of Maggi. As deterioration in perceived
value of the Maggi brand due to its Noodles product category can affect the brand as a
whole.
3. Commoditized name: For majority of population the name Maggi is being commoditized
for Noodles just like Coalgate, Surf etc.
INITIAL STRATEGIES OF MAGGI
MARKETTING STRATEGY-
Marketing Mix of Maggi analyses the brand/company which covers 4Ps (Product, Price, Place,
Promotion) and explains the Maggi marketing strategy. The article elaborates the pricing,
advertising & distribution strategies used by the company.
1. PRODUCT-
The instant noodles category has a wide variety and very popular globally. The major Maggi
products in this category are 2-minute Noodles, Chicken noodles, Vegetable Multigrain
noodles, Cuppa Mania, Hot Heads noodles, Oats noodles, Atta noodles. This is the backbone
of the product strategy in the marketing mix of Maggi.
2. PRICE-
In recent times Maggi has started coming up with new products like the cup range and Hot
Heads noodles which it targets for the higher income level segments and hence are priced at
higher range.
3. PLACE –
Maggi products are directly taken from the factories which are independently managed to
Carry and Forward Agencies who then store in there large warehouses and pass them onto
the wholesalers according to their demanded quantities. These quantities are then distributed
among the retailers or to the end customer through hypermarkets, other small businesses and
even its own kiosks to corporates.
4. PROMOTION-
The advertisements mainly flashed on kids channels with effective tag lines of “Bas 2-
minute” and the jingle “Maggi Maggi Maggi”. On its 25th anniversary it launched the voice
over campaign to create a nostalgic feeling among the customers about their journey with
Maggi. It has also used the “Miss you Maggi” ad campaign to regain back the lost customers
after the Maggi ban in India.
MAGGI NOODLES, FOOD ADULTERATION, F.S.S.A.I
Lead toxicity is slow poisoning. Lead accumulates in the body to cause irreversible
damage to the brain and nervous system. It causes 600,000 new cases of brain and
learning disorders in children every year, globally (All data is W.H.O.).
Maggi Noodles first recall was in 1992. Nestle thereafter stated that it has stopped using
MSG. In 1997, Maggi Noodles second recall took place after which light frying of
noodles stopped.
Nestle re-launched Maggi Noodles in November 2015. Nestle stated it has destroyed
Rs 350 crore worth of stocks. It has now started selling across 100 cities, apart from
Snapdeal orders by June 2016.
In August 2015, the Government of India filed the first-of-its kind “Class Action Case”.
Against Nestle India seeking Rs 640 crores in damages for alleged unfair trade practices
by selling hazardous noodles. In August 2015, Bombay High Court lifted the ban on
Maggi Noodles but has ordered a round of fresh tests. F.S.S.A.I. in March 2016 has
ordered that all food business operators will stamp products with “NO MSG” or “NO
ADDED MSG”.
Conclusion
https://images.app.goo.gl/zcMebPDXgF1383Pb6
https://blitzkrieg974.wordpress.com/2017/03/12/maggi-noodles-food-adulteration-f-s-s-a-i/
https://blitzkrieg974.wordpress.com/2017/03/12/maggi-noodles-food-adulteration-f-s-s-a-i/
https://en.wikipedia.org/wiki/Maggi
https://en.wikipedia.org/wiki/Nestl%C3%A9
https://m.economictimes.com/industry/cons-products/food/lead-is-everywhere-but-not-in-our-
noodles-maggi/articleshow/67416079.cms?utm_expid=.aCvTruGxS8-
4GGxfap5E9A.0&utm_referrer=https://m-economictimes-
com.cdn.ampproject.org/v/s/m.economictimes.com/topic/Maggie/amp?amp_js_v=a2&_g
sa=1&usqp=mq331AQEKAFwAQ%3D%3D
https://www-livemint-com.cdn.ampproject.org/v/s/www.livemint.com/companies/news/nestle-
india-to-set-up-new-maggi-plant-with-initial-investment-of-rs-700-crore/amp-
1564754794420.html?amp_js_v=a2&_gsa=1&usqp=mq331AQEKAFwAQ%3D%3D#ao
h=15673361647564&referrer=https%3A%2F%2Fwww.google.com&_tf=From%20%251
%24s&share=https%3A%2F%2Fwww.livemint.com%2Fcompanies%2Fnews%2Fnestle-
india-to-set-up-new-maggi-plant-with-initial-investment-of-rs-700-crore-1564754794420.html