Customer value

A description of the experiences the target user will realize upon purchase and use of a product.Reflects the advantage that a target user would experience.

How to create customer value

Time frame

Intended customer

Next best alternative

Value experiences

Value quantificatio

n

price

TIME FRAMECurrent and through the next 6 months

In 1 year

in 6 months and over the 12 months that follows

who •relevant details about the segment of individuals

where •the type of business and organizations where the key target users can be found

what •the behavior required to achieve the desired value

why •Why-the daily problems in any way related to the solution the product offers

How •the detailed expected use of the product

Intended customer

NEXT BEST ALTERNATIVE

• The value experience by the customer compare to the expected use of the product with the next best alternative.

VALUE EXPERIENCES

Beneficial experiences

•Positive

value

Parity experiences

•Equal value

Tradeoff experiences

•Negative

value

VALUE QUANTIFICATION

• Measure the value which is quantified• Estimate what can’t be measured• Don’t try to measure intangible.

PRICE

price

cost

Total cost

COMMERCIAL- VIM

Vim dish-wash solution, a product of Hindustan level limited has recently proven its value by breaking the history and getting itself registered in the Guinness record. Recently the company demonstrated the power of Vim by washing exactly fifteen thousand three hundred dirty plates with just half a liter of Vim solution. The Guinness record has identified Vim to offer the greatest value for money when compared with all its competitors.

Lets get back to 1980’s when Maggi was born

• Maggi was launched in India in 1982 by Nestle India Ltd. (NIL), the Indian subsidiary of the global FMCG major, Nestle SA.

• Maggi was invented in Europe by a person

named Julius Maggi.

INCEPTION OF MAGGI

• 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.

• In 1980’s, instant noodles was an entirely new category. Now, the challenge was to establish an alien product and yet find a relevant consumption benefit in the market.

• Initially nestle tried 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.

INITIAL PROBLEMS FACED BY MAGGI

To over come this problem…

• 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. 2.50 per 100gm 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'

• “Mummy Mummy Bhook Lagee- Bas Do Minute” was a rendition of this approach. It fit well with the mother’s child caring relationship. These ads became so popular that “Bas Do Minute” instantly reminded Indian consumers of Maggi noodles

LETS HAVE A

LOOK AT THE

TIMELINE OF

MAGGI

1997-1999 •Nestle changed the taste of Maggi Noodles but it proved to be a failure.

1999 •Maggi reintroduces the old formulation and revised the sales with the punchline – “Fast to Cook, Good to Eat”

2000 •Maggi became the leader in instant noodles space.

2005• Health Factor was gaining importance.

Marketing strategy to keep the Maggi brand as a “Health Product” with its tagline- “Health bhi-Taste bhi” with the launch of Maggi Atta Noodles.

2009

• Maggi celebrates 25 years of Maggi noodles with “Me and meri maggi” campaign and the launch of Maggi Pazzata. This campaign invited customers to share their special Maggi moments. As a part of promotional drive, Maggi launched a website, where the consumers could upload their maggi moments and their favourite recepies or stories and the best amongst them will get a chance to feature on the maggi packets.

2012 • Maggi has generally stayed away from the celebrity endorsements. In general, mother and child have been the celebrities for Maggi for the longest time. With its only exceptions, when Preity Zinta promoted the Rs.5 Chotu Maggi and the family packs.

2012

•Recently, Amitabh Bachchan has been made the brand ambassador of Maggi. Maggi’s “Do minute Mein Khushiyan” with Amitabh Bachchan was launched in 2012.

SWOT

STRENGTH• Strong brand recall and

product is almost eponymous to the brand.

• Market leader in term of largest market share.

• Emotional relationship with the customers.

• Strong market distribution network of the parent company Nestle.

WEAKNESS• Tagged as a product

having no health value.• The product features

remain constant since inception in 1983.

• The market share has fallen from 90.7% to 86.5% in july 2010.

OPPORTUNITIES• The market share of instant

noodles has shown tremendous growth with doubling the market size in 2010.

• Increase in number of potential customers i.e. single working professional and students.

• Upward trend of convenience food consumption.

• Untapped rural segment.

THREATS• Increasing competition with the

entry of ITC and TOP ramen.• Top ramen has repositioned

itself on a healthy platform by introducing noodles containing vitamins and calcium.

• More international brands like Wai Wai and Rum Pum are making their entry in noodles market.

Marketing mix

MARKETING MIX• 2 min Masala noodles• Daal aata noodles• Cuppa mania• Chicken thrilling curry

• Very competitive prices• Prices decided to target

every class of population• Price range starts from

just rs. 5

• Urban areas• Semi urban areas• Rural areas• Local retailers and malls

for easy availability

• Effective tagline communication• Attractive yellow and red packaging• Gifts on empty packets• Customers participation in sharing

their story with Maggi• Availability in different packages

product price

placepromotion

The Meri MAGGI is the largest MAGGI facebook community with over 1.2 million fans and very high engagement.

“Share your story and get famous” has gained momentum on digital media.

BRAND MARKET SHARE

NESTLE MAGGI 87.5%

ITC YIPPI 5.8%

HUL KNORR SOUPY NOODLE 2.6%

OTHERS 4.1

TOTAL MARKET OF NOODLE IN INDIA (Rs.) 3,124 cr.

NESTLE MAGGIITC YIPPIHUL KNORR SOUPY NOODLESOTHERS

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