Group Members

Lavish Chanodia

49

Nidhi Bharati

85

Sneha Sinha

83

Abhinav Saha

34

Animesh Singh

145

Swapnil Sakpal

556

Suditi Chaudhary

259

Nestle
Nestl is a Swiss multinational nutritional and health-related consumer
goods company headquartered in Vevey, Switzerland.
Nestl was founded in 1866 by Henri Nestl
Since it began over 130 years ago, Nestls success with product
innovations and business acquisitions has turned it into the largest Food
Company in the world.
Henri used his surname Nestle both as brand name & Logo, which
means little nest
The nest, symbolizes security, family and nourishment
Revenue 69.6 billion (2011)
Employees 328,000 (2012)

Nestl's Marketing Orientation

Market orientation occurs when the customers identify the difference in a

company and when all the benefits offered to the customers are measured.

The main advantage of a company being market oriented is that it would have a
higher customer value and there would be a consistency in superior performance
in the business.

Nestle concentrates on their consumers and tries to understand their physical and
emotional desires

Nestle try to understand the economic, geographic and social factors which affects
the diets of the consumers

Nestle - concentrated on the lower-income consumers

- products available at affordable prices

Nestl's Marketing Orientation(Cont..)

Nestle also try to understand the motivations, routines, decision making and
purchasing habits of the customers

Nestle is a Market Oriented company since they try to understand the customer
or market needs and produce products accordingly to achieve the organizations
goals.

Nestle believes that their Manpower is the strength of the company.

Maggi

Maggi is a Brand of instant Noodle made by Nestle India Ltd

It was founded by the Maggi family in Switzerland in the 19 th century

Nestle launched Maggi for the first time in India in the year 1982

Nestle wanted to explore the potential for such an Instant food among the Indian
market.

It took several years and lot of money for Nestle to establish its Noodles brand in
India.

Now it enjoys around 90% market share in this segment & is one of the most
sold FMCG product.

Over the years Maggi has launched several products under its Brand name

The brand is popular in India, Australia, South Africa, Malaysia and many more
countries

3 Cs of Maggi

Company
Customer
Competitor

Company
Maggi is a brand of Nestle , Switzerland based company.
Nestle launched Maggi for the first time in India in the
year 1982.
Nestle is worlds largest food company .
Maggi was launched in India in 1982
Its Maggi noodles became one of the highest selling FMCG
products in India.

Customer
Children
Youth
Office Goers
Working Women
Health Conscious People

Competitors
Top Ramens

Sunfeast Yippee noodles

Pastas

Maggis Product Life Cycle

Introductory Stage
High failure rates
No competition
Frequent product modification
Limited distribution
High marketing and production costs
Promotion focuses on awareness and information
Nestl India Ltd. (NIL), the Indian subsidiary of the global FMCG major,
Nestl SA, introduced the Maggi brand in India in 1982,.
Because of its first-mover advantage, NIL successfully managed to retain
its leadership in the instant noodles category

Growth Stage
Increasing rate of sales
Entrance of competitors
Initial healthy profits
Promotion emphasizes brand ads
Prices normally fall
Development costs are recovered
10 years back it enjoyed around 50% market share in this segment which was valued at
around 250 crores.
During the 1990s, the sales of Maggi noodles declined, due to growing popularity of
TopRamen , another instant noodles product.
In order to improve sales ,NIL changed the formulation of Maggi noodles in 1997.

Maturity Stage
Decline sale growth
Saturated market
Extending product lines
Heavy promotions to dealers and consumers
Price and profit fall
In 2003 HLL introduced knorr Annapurna, a liquid snack segment in
competition to NILs Maggi range
The new product by HLL was price at Rs. 5/- and came in 4 variants
Like Maggi, soupy snax targeted all age-group, particularly office goers

Decline Stage
Long drop in sales
Large inventories of unsold items
Elimination of all non-essential market expenses

Extending the PLC

Change product
Change product use
Change product image
Change product positioning

STPD Analysis
Segmentation

Targeting

Positioning

Differentiation

AGE

Kids

Fast to cook Good Tastes

to eat

Eating Habits

Youth

2-Minute Noodles

Flavours

Life style of Urban Office Goers

Taste bhi Health Packaging

Families

bhi
Health
People

Conscious

4 Ps Of Marketing
of
Maggi

Product
Maggi Noodles

Place
Maggi Noodles are available everywhere .
They are available from a small general store to a big
supermarket.

Price
Maggi is priced very economically keeping in mind the income
level of people.
The company wanted to make it available at very affordable prices.
The price ranges from Rs 5 to Rs 50.

Promotion

Promotional campaigns in school.

Advertising strategies:

-focusing on

-50 gms.

kids.

Availability in different packages:

- 100 gms.

New product innovation according to

the need of consumers: Veg. Atta

-200 gms

Noodles.

-family packs (400gms.).

Dal Atta Noodles.

Conducting regular market research

Cuppa Mania.

The shopkeepers who sell Maggi

from there shops get commission
between 15-20 % .

Maggis Distribution Channel

Suggestive Promotional Strategies

They should conduct test marketing before launching new product.

Focus on creating distinctive image, based on twin benefits of INSTANT and

HEALTHY

Conduct promotional campaigns at schools in small towns with population more

than 10,000.

Strengthen the distribution channel of the rural areas within 100 KM of all the
metros.

Launch new advertisement campaign (T.V., Radio and print media commercials)
with the brand ambassador.

Conduct Market Research to find out the market penetration of the product in the
rural areas covered.

BCG Matrix