Palghat S Hitesh - 13161 Riddhi Jaini - 13166 Shreyas R Naik - 13171 S. Shubhanjali - 13176 Vinay Kulkarni - 13181 Case Facts Instant Noodle Industry in India Instant Noodle Industry during the year 2011 - 1300 CR
Market growth rate - 30 % per annum
Estimated to reach Rs.3000-3500 CR by 2015
Indians consume about 90,000 tons of Noodles every year
Major players Nestle Maggi, ITC Sunfeast Yippee!, GSK Foodles, Knorr Soupy Noodles, Top ramen and other private brands
Case Facts - Nestle Founded in 1867 and entered Indian market in 1912 as Nestle India, a subsidiary of Nestle Switzerland
Worlds largest and diversified food company
281000 Employees, 540 Factories across 118 countries, 8000 products
Adopted PPP (Popularly Priced Products) strategy
Chairman and MD of Nestle India Antonio Helio Waszyk
Case Facts Maggi Launched in India in the year 1983
Market Leader in instant noodles category with 85% market share as of 2011
First mover advantage
Most-loved Noodle brand in India
Dominated the Instant noodles industry for nearly 3 decades, synonymous to noodles in Indian market
Noodle Market (Market Share) Maggie, 85 Top Ramen, 3.1 Tasty Treat, 1.8 Yippee!, [VALUE] Foodles, 3.2 Others, 2.6 Maggi Positioning Maggi 2-minutes Noodles Fast to Cook Good to Eat (1980s & 90s) Just add garam Paani and carry on Jaaani! (2008) Maggi Cuppa Mania. Taste bhi, Health bhi (2000 till date) Me and meri maggi
Maggi Products (Noodle Category) Maggi Masala
Maggi Vegetable Atta Noodles
Maggi Rasile Chow
Problems Decreasing Market Share
Increased Competition from major brands like HUL, ITC, GSK etc. Variety Seeking Attitude Among Youngsters Reduced Customer Loyalty
92.3 91.9 91 88.1 89 85.7 85 80 82 84 86 88 90 92 94 2005 2006 2007 2008 2009 2010 2011 MARKET SHARE Competitors Analysis Yippee! Owned by ITC, was launched in Sep 2010 Good Distribution Network across the country Mainly targeted towards Kids and Teenagers Stands different in taste First to introduce noodles in a round shape Market Share 4.3% Most aggressive competitor of Maggi.
Foodles Owned by GlaxoSmithKline (GSK) Has a strong hold in South and East India with 6% market share It sources its noodles from Indo-Nissin but banks on its own branding and distribution USP- Multi Grain noodles Market Share- 3.2%
Competitors Analysis(2) Knorr Soupy Noodles Introduced in March 2010 Owned by HUL Good Distribution Network Healthy alternative for junk food-Evening snack for kids Market Share < 1% Sends out a clear message to Kids and Mothers why choose one when you can get both Aggressive product push strategies through shelf buying and bundle selling
Top Ramen Oldest competitor of Maggi, has been around since 1991 Owned by Indo- Nissin Has a bunch of loyalists who prefer its spice factor Initially lacked a strong distribution network, but later tied up with Mudra Maxx to improve the same.
Competitors Analysis (3)
Tasty Treat Owned By Future Group. Second biggest instant noodles brand in Big Bazaar stores after Maggi Has increased number of variants from 3 to 9
Other competitors include Aditya Birlas Feasters, Capital Foods Chings Secret, CG Foods Wai-Wai and Smith & Jones
Solutions Competitive Strategies Launch of New Products in different exciting flavors and enhancing the health proposition such as oMaggi Soupy Noodles (in different flavors) oSchezwan Maggi oNutri-Egg Maggi For promoting, use bundling with Maggi Masala and other Maggi products such as Ketchup, Soups Provide Dealer incentives for bulk buying Target Schools and spread awareness among kids and mothers Introduce Nestle outlets at bus stands and Railway stations
Campaigns That Can Be Used: Maggi to run campaigns in schools and advertise the same through print and electronic media to promote their healthy and nutritious products such as Vegetable Atta Noodles and Nutri-Egg Maggi
Using anecdotes to start a campaign as Baarishwali Maggi and Padhai wali Maggi to attract Youth and Teenagers Hum aur Hamari Maggi Padhai bole to Maggi Health aur Taste ka Asli Naam Maggi !
Maggi to come up with various new flavours and run a campaign such as Vote for your Favourite Flavour in which the public can vote for their favourite flavour through phones and social media Thank You!