Name(s)

i. NURIZZATUL LAILI BINTI ABDUL RAHIMii. NURSYAHIRAH BINTI ABD RAUF

iii. NUR AZIEZAH BINTI HAZLANiv. HIDAYU BINTI JAMILv. MUHAMMAD ADIB SYAZWI BIN ABDUL HALIM

vi. AHMAD FAIQ BIN SHAMSUDDIN

ID Number(s)

i. PTM130723007ii. PTM130722470

iii. PTM130722482iv. PTM130722578v. PTM130722920

vi. PTM130722793

Lecturer

MISS NURUL HIDAYAH

Lab group / Tutorial group / Tutor (if applicable)

SECTION 13

Course and Course Code

BASIC CORPORATE STRATEGY (PMG2073)

Submission Date:

29th APRIL 2015

Assignment No. / Title

SWOT ANALYSIS REPORT

Extension & Late submission: Allowed / Disallowed

Assignment type:

INDIVIDUAL / GROUP

% of Assignment Mark Returning Date:

Penalties:

1. 10% of the original mark will be deducted for every one week period after the submission date2. No work will be accepted after two weeks of the deadline3. If you were unable to submit the coursework on time due to extenuating circumstances you may be

eligible for an extension4. Extension will not exceed one week

Declaration: I/we the undersigned confirm that I/we have read and agree to abide by these regulations on plagiarism and cheating. I/we confirm that this piece of work is my/our own. I/we consent to appropriate storage of our work for checking to ensure that there is no plagiarism/ academic cheating.

Signature(s): ____________________ ____________________ ___________________

( NURIZZATUL LAILI ) ( NURSYAHIRAH ) ( AHMAD FAIQ )

___________________ ____________________ ___________________

( HIDAYU ) ( NUR AZIEZAH ) ( MUHAMMAD ADIB )

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This section may be used for feedback or other information

TABLE OF CONTENTS

Bil. Contents Page Number

1 COMPANY HISTORY 3

2 MAJOR PRODUCT 4 - 6

3 STRENGTHS 7

4 WEAKNESSES 8

5 OPPORTUNITIES 9

6 THREATS 10

7 SUGGESTION 11

8 CONCLUSION 12

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COMPANY HISTORY

Maggi is an international brand of instant soups, stocks, bouillon cubes, ketchups,

sauces, seasonings and instant noodles. Owned by Nestlé since 1947, the original company

was founded in Switzerland in 1872 by Julius Maggi. The brand is known for Maggi noodles,

Maggi cube, and Maggi-Würze (seasoning sauce).

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 1947, following several changes in ownership and corporate structure, Maggi's

holding company merged with the Nestlé company to form Nestlé-Alimentana S.A., currently

known in its francophone Homebase as Nestlé S.A. Today, Maggi is known throughout the

world for its dry soup, 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 favourite.[1]

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MAJOR PRODUCTS

Noodles

In India and Malaysia, Maggi instant noodles are very popular; Nestle has 39% of the

market in Malaysia, where "Maggi" is synonymous with instant noodlesand a 60% share

in India where it was the first instant noodle brand.In Malaysia, fried noodles made from

maggi noodles are called Maggi goreng.

Maggi noodles have been advertised as 2 minute noodles since 1982. The firm

recently introduced new varieties of its noodles, for example 'No MSG', 'Less Salt', and

'No Trans fat' to cater to the health conscious. In mid-2008, New Zealand supermarkets

introduced replacement formulations for the beef, oriental, and curry flavours. A new feature

is an extra sachet containing dehydrated vegetables. Maggi claims the new range contains

88% less total fat and 86% less saturated fat than the average of top-three (unnamed) 2-

minute-noodle competitors. The new Maggi range also has considerably lower fat than its

own previous formulation. However, the salt content has been increased by 31 percent.

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Seasoning Sauce

"Maggi" is still synonymous with the brand's Maggi Würze (Maggi seasoning sauce),

a dark, soy sauce-type hydrolysed vegetable protein-based condiment sauce. In Spain and

Mexico, it is sold under the name Jugo Maggi.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 widely used in Poland

(known there as "Przyprawa W Plynie") and the Netherlands.

Maggi Würze has popularity in Serbia and Macedonia, despite not being officially

available in those countries. Maggi is very popular in East Asia, Southeast Asia, andSouth

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",

imparting a umami [savory] flavor.

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Cube

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 West Africa and parts of the Middle East, Maggi cubes are used as part of the

local cuisine. In Liberia, they are used as an application to the cut umbilical stump of new-

bornbabies. In Haiti,and throughout Latin America, Maggi products, especially bouillon

cubes, are widely sold with some repackaging to reflect local terminology.

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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.

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Weaknesses in the SWOT

analysis of Maggi

P 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.

P Ill effects of Maggi

Awareness about ill effects of Maggi is gaining momentum with more & more

educated class becoming more health conscious.

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Opportunities in the SWOT

analysis of Maggi

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).

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.

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.

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Threats in the SWOT analysis of

Maggi

P Competition

Since Maggi have a strong competitors , it is kind of tough competition that they will

get from the local & national player in the area that are concern for the co.

P Negative word of mouth

Propagation of ill effects of Maggi noodles through online & Social Media possess

threats to the existence of Maggi.

P Commoditized name

For majority of population the name Maggi is being commoditized for Noodles just

like Coalgate, Surf etc.

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SUGGESTIONS

Add more flavourBy adding more flavour customer will be enjoy eating the new maggi recipe and they will order repeatedly.

Add meat in maggi packetCustomer does not have to buy meat anymore if the instant noodles are included meat in their product. The meat will bring something new to the product.

Use organic product instead of artificial product.Create new product base on organic, less chemicals and more to health and suitable for diet person because people nowadays are seeking for healthy food.

Add chopstick in maggi cupSome people prefer using chopstick instead of fork and spoon because they live in a culture whereby using chopstick are normal things for them.

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Conclusion

The food processing business is only about 10% of the output is processed and

consumed in packaged form thus highlighting huge potential for expansion and growth.

Traditionally, peoples believe in consuming fresh stuff rather than packaged or frozen, but

the trend is changing and the new fast food generation is slowly changing. Riding on the

success of noodles, Nestle in India, tried to make extensions of the Maggi brand to a number

of products like, sauces, ketchups, pickles, soups, tastemakers and macaroni in the mid-

1990s. Unfortunately, the macaroni and pickles didn‘t pick up as expected.

The soups and sauces did somewhat fine, gathering considerable sales volumes and

have a satisfactory presence even today. Maggi Noodles‘ itself faced a bit of difficulty with respect

to taste‘, and nearly lost its position in the minds of Indian consumers in the late 1990s. When

Nestle changed the formulation of its tastemaker, the ominous packet that came along with

Maggi Noodles, a major chunk of consumers were put-off and sales started dropping. Also,

Maggi‘s competitor ‘Top Ramen’ took advantage of the situation and started a Parallel aggressive

campaign to eat into Maggi‘s market share.

But the company quickly realised this and went back into making the original formula

coupled with a free sampling campaign. This helped Maggi to win back its lost consumers

and pushed up its sales volumes again! The year 2008 saw India leading in worldwide

Maggi sales. The brand has grown to an estimated value of Rs 160-170 and contributes at

least 8 - 9% to Nestle India‘s top line. All the same, some FMCG analysts feel that the brand has not

done much to expand the noodles category. Even after 25 years of its launch, the size of the

instant noodles market is yet quite small at Rs 300. But yes, the parent company, Nestle

India Limited has certainly encouraged the brand to enter into other culinary products

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