Maggi writeup

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Yachika Verma

Text of Maggi writeup

  • Made By : Yachika Verma 2013 MAGGI
  • Introduction:- Maggi noodles is a brand of instant noodles manufactured by Nestl. Maggi has been the highest sold noodles in India. It is a product of Nestle Brand. It took several years and lots of money for nestle to establish its noodles brand in India Maggi was invented in Europe by a person named Jullius Maggi. In India it was launched in 1980s by Nestle group of companies. Maggie had merged with Nestle family in 1947. Maggie has faced lot of hurdles in its journey in India. The basic problem the brand faced was the Indian psyche. i.e. Indians used to be conservative about the food habits so noodles faced a lot of problem in promoting sales. Initially nestle tried to to position the Noodles in the platform of convenience targeting the working women. However, the sales of Maggi was not picking up despite of heavy Media Advertising. To overcome this NIL conducted a research, which revealed that it was children who liked the taste of Maggi noodles and who were the largest consumers of the product. So they came up with Maggi- 2 minute noodles with price of Rs. 2.10 with a close of 100% margin. NIL shifted its focus from working women and targeted children and their mothers through its marketing. NIL's promotions positioned the noodles as a 'convenience product', for mothers and as a 'fun' product for children. The noodles' tagline, 'Fast to Cook Good to Eat' was also in keeping with this positioning. They promoted the product by 1.Distributing free samples. 2.Giving gifts on return of empty packets. 3.Dry sampling-distributing Maggi packets 4. wet sampling - distributing cooked Maggi. 5.Availability in different packages 50gm,100gm,200gm,etc.. and 6.Effective Tagline Communication. Through its ads, NIL positioned Maggi as a 'fun' food for kids which mothers could prepare easily. Taglines like 'Mummy, bhookh lagi hai' (Mom, I'm hungry), 'Bas 2-
  • Minute,' and 'Fast to Cook Good to Eat' effectively communicated the product's benefits to target consumers. These ads had become so popular that the tagline 'Bas 2-Minute' immediately reminded Indian consumers of Maggi noodles even several years after the ads were taken off the TV. Maggi's first product extension was Maggi instant soups launched in 1988. With the launch of Maggi soups, NIL had become a pioneer in the organized packaged soup market in India..since then Maggi has been successful in India and launched ketch ups sauces and soups in India, which was very successful in grasping market. Though NIL tried to extend to other ready to eat products like pickles, cooking aids and paste, It was unsuccessful so dumped those products. Maggi is competing with Heinz Sauces and Ketchup, Knoor Soups, Kissin Sauces and Ketchup, Top Ramen, Sunfeast Pasta WaiWai and 2 PM in corresponding categories of products and variants. Market position of Maggie: 1.No.1 in instant noodles and sauces. 2.No.2 in healthy soups. 3.Market share of noodles- 80% 4.current sales-5.5crores boxes in India. History Maggi (German pronunciation: [magi]) is a Nestl brand of soups, stocks, bouillon cubes, ketchups, sauces, seasonings and instant noodles. The original company came into existence in 1872 in Switzerland, when Julius Maggi took over his father's mill. He quickly became a pioneer of industrial food production, aiming to improve the nutritional intake of worker families. Maggi was the first to bring protein-rich legume meal to the market, and followed up with a ready-made soup based on legume meal in 1886. In 1897, Julius Maggi founded the company Maggi GmbH in the German town of Singen, where it is still based today. In parts of China, Vietnam, Thailand, Taiwan, Philippines, Singapore, India, Pakistan, Europe, Mexico, Malaysia, Brunei, German-speaking countries, the Netherlands, the Czech Republic, Slovenia, Slovakia, Poland andFrance, "Maggi" is still synonymous with the brand's "Maggi-Wrze" (Maggi seasoning sauce) (in Spain it is sold under name Jugo), a dark, hydrolyzed vegetable protein- based sauce which is very similar to East Asian soy sauce, except it does not actually contain soy.[1] Prior to the early 2000s, Maggi seasoning was an actual soy sauce, using soy and wheat as some of their ingredients, however a change in
  • ingredients resulted in the omission of soy. It was introduced in 1886 as a cheap substitute for meat extract. It has since become a well-known part of everyday culinary culture in Switzerland, Austria and especially in Germany. It is also well known in Poland and the Netherlands. Maggi Wrze has huge popularity in Serbia and Macedonia despite not being officially available in those countries. Maggi is also immensely popular in East Asia, Southeast Asia, and South Asia, where Maggi seasoning is used in many soups, stir-fries, marinades and as a dipping/topping sauce. Maggi seasoning is commonly used in Asia as a "soy sauce". The bouillon cube or "Maggi cube", which was another meat substitute product, was introduced in 1908. Because chicken and beef broths are so common in the cuisines of many different countries, the company's products have a large worldwide market. In 1947, following several changes in ownership and corporate structure, Maggi's holding company merged with the Nestl company to form Nestl-Alimentana S.A., currently known in its francophone home base as Nestl S.A.. Today, Maggi is known throughout the world for its dry soups, seasoning sauce and instant noodle dishes. In New Zealand, Maggi Onion Soup mix is often combined with reduced cream to create an onion dip for potato chips that has come to be generally accepted as a Kiwi favorite. [ In India, Maggi instant noodles are a favorite for an anytime meal. From dorm rooms of colleges to late-night cooking in home kitchens, its an all-time favorite. In West Africa and parts of the Middle East, Maggi cubes are used as part of the local cuisine. Throughout Latin America, Maggi products, especially bouillon cubes, are widely sold with some repackaging to reflect local terminology. In the German, Dutch and Danish languages, lovage has come to be known as "Maggi herb" (Ger. Maggi kraut, Du. maggikruid or Da. maggiurt), because it tastes similar to Maggi sauce, although lovage is not present in the sauce. In Malaysia, Indonesia, Thailand and Vietnam, Maggi seasoning sauce is a popular condiment, and the bottles are familiar sights on restaurant tables. MAGGI BRAND IN INDIA Maggi Comes to India teething troubles Maggi noodles was launched in India in theearly1980s. Carlo M. Donati, the present Chairman and Managing Director of Nestle India Ltd, brought the instant noodle brand to India during his short stint here in the early eighties. At that time, there was no direct competition. The first competition came from the ready-to-eat snack segment which included snacks like
  • Samosa, biscuits or maybe peanuts, that were usually the bought out type. The second competition came from the home made snacks like Pakore or sandwiches. So there were no specific buy and make snack! Moreover both competitors had certain drawbacks in comparison. Snacks like Samosa are usually bought out, and outside food is generally considered unhygienic and unhealthy. The other competitor, homemade snacks overcame both these problems but had the disadvantage of extended preparation time at home. Maggi was positioned as the only hygienic homemade snack! Despite this, Nestl faced difficulties with their sales after the initial phase. The reason being, the positioning of the product with the wrong target group. Nestl had positioned Maggi as a convenience food product aimed at the target group of working women who hardly found any time for cooking. Unfortunately this could not hold the product for very long. In the course of many market researches and surveys, the firm found that children were the biggest consumers of Maggi noodles. Quickly they repositioned it towards the kids segment with various tools of sales promotion like color pencils, sketch pens, fun books, Maggi clubs which worked wonders for the brand. Why the specific Brand positioning? Maggi was positioned as 2-minute noodles with a punch line that said Fast to cook! Good to eat! And this gave the implied understanding to the consumer that it was a between meals snack. The company could have easily positioned the product as a meal, either lunch or dinner. But, it chose not to do so, because the Indian consumer mindset did not accept anything other than rice or Roti as a meal. Hence trying to substitute it with noodles would have been futile. The firm did not position it as a ready-to-eat meal either, as the housewife prefers to make a meal for her kids rather than buy it for them. And if she can make it in two minutes with very little effort, then obviously its a hit with her! Whats more, if kids also love the taste, the product is as good as sold! So the 2-minute funda coupled with the yummytaste worked Maggis Brand Extension and Repositioning Subject: Product And Brand Management have been futile. The firm did not position it as a ready-to-eat meal either, as the housewife prefers to make a meal for her kids rather than buy it for them. And if she can make it in two minutes with very little
  • effort, then obviously its a hit with her! Whats more, if kids also love the taste, the product is as good as sold! So the 2-minute funda coupled with the yummy taste worked! BRAND STORY Launched in 5 flavors initially Masala, chicken, Capsicum, sweet & sour, and Lasagna Maggi had to fight hard to be accepted by Indian consumers with their hard-to-change eating habits. The packaged food market was very small at this time, Nestle had to promote noodles as a concept, before it could promote Maggi as a brand. It therefore devised a two-pronged strategy to attract mothers on the convenience plank and lure kids on the fun plank. Gradually, the market for instant noodles began to grow. The company also