DOWNFALL OF AN ICONIC BRAND: THE MAGGI CRISIS IN INDIA
Nestle Maggi
1.
2. CONTENTS
1. Introduction to Nestle and Maggi
2. 4 P’s of marketing mix
3. Brand recall and future scope
4. Conclusion
3. INTRODUCTION TO NESTLE
•Nestlé S.A. – a global FMCG major
•Nestlé India is a subsidiary of Nestlé S.A. of Switzerland
•It has seven factories across India
•Has presence in milk products and nutrition, prepared dishes
and cooking aids, Beverages , chocolates and confectionary
•Nestlé anticipates consumer needs in order to provide taste,
nutrition, health and wellness
Turnover in India: 36471
million rupees (2007)
Profit: 4138 million rupees
4. NESTLE MAGGI
•NIL launched maggi brand in India in 1982
•NIL offers lot of culinary products such as instant
noodles, soups, sauces & ketchups, cooking aids under
maggi brand
•First entrant in instant noodles category in India
•In 2005, ‘MAGGI TAKES THE HEALTH ROUTE’
•Launch of dal atta noodles in May, 2006
5. MARKET SURVEY
OBJECTIVE:To collect information regarding 4P’s of Maggi
Method used: Interviews of shopkeepers, distributors and consumers
Area of survey : Nerul AND New Panvel
Shopkeeper sample collection: General stores(19), medical stores(5),
sweet shops(4), malls(2)
Consumer sample collection: kids, youngsters, housewives, office goers
Shopkeeper sample size: 30
Consumer sample size:50
•Shopkeepers were interviewed on the amount of stocks they keep,
consumer preferences, promotional activities, competitors products,
payment terms and their take on newly launched maggi noodle products
•Consumers-their preferences and view on maggi noodles
8. QUALITY, DESIGN AND FEATURES
•Experimental Kitchen and sensory laboratory
•Panel of application groups and 15 professional tasters
•Maggi 2 min noodles comes in 4 flavours
•Maggi cuppa mania comes in 2 mouthwatering flavours
•Healthy range of products (lot of fibre and protein)
•30 million rupees for R&D
PACKAGING AND SIZES
•Available in packs of 50g, 100g, 200g, 400g, 600g and 800g
•Colourful packaging
•Maggi cuppa mania comes in attractive sleeved cups with a
fork for usage
9. PRODUCT SAMPLE FINDINGS
VARIETY: predominant demand for maggi masala and lesser demand for curry
and cuppa mania
QUALITY: very few experimental flavors accepted by consumers, they still prefer
traditional masala flavor
DESIGN AND FEATURES:Cuppa mania, rice noodles, dal noodles were not very
successful, production stopped for rice noodles, dal noodles
PACKAGING/SIZES:plastic paper packaging, convenient carry packs for Rs 10,
family packs also available
10. PRICES
Maggi 2 min noodles(Masala, curry,tomato,chicken) – Rs 10 per
100gms
Maggi Atta Noodles – Rs 15 per 100gms
Maggi cuppa mania(chilli, regular)-Rs 25 per 100gms
Tetrapacks (400gms)-Rs 39 Six pack (600gms)-Rs 57
DISCOUNTS
If you join Family Nestle, you receive
•Exclusive 10% discount and free home delivery on all Nestle
products ordered online
•A special 10%discount for shopping at Nestle staff shops
•Special family Nestle offers etc
11. Maximum sold product: Rs 10 packet followed by Rs 5 packet
Discount: six/eight tetra packs are priced at Rs 57, Rs 68, which
are very popular in malls. The malls offer 50 paise discounts on
bulk purchases.
Payment period: credit of 4 days is allowed by the distributors
Payment terms Commision terms
12. PROMOTION
POSITIONING AND INITIAL PROBLEMS
•2 minute noodles-Between snack meals
•Initially targeted at working women
•Presence of Top Ramen
SALES PROMOTION:
• Use of posters, hangers and tanglers.
•Point of sales
•Backdrops on shelves
ADVERTISING
•Children centric advertising
•Maggi club-contests, games etc
•Use of tag lines
13.
14. PLACE
•Maggi follows an intensive distribution network in the urban market
•Seven factories- Punjab, haryana, Uttarakhand, Goa(2), Karnataka, Tamil Nadu
PLACE SURVEY FINDINGS
CHANNELS:
• Malls, distributors, shopkeepers
•Centralized distribution for big retail outlets
COVERAGE: Covers both residential and college areas
LOCATIONS:Nerul, New panvel
INVENTORY: Weekly stock distribution to the shopkeepers
TRANSPORT:Minor distribution problems
ASSORTMENT:Available in general stores, retail outlets,
medical stores, sweet shops and bakeries
15. BRAND RECALL AND FUTURE SCOPE
•Introducing a fictitious character who can connect with kids
•Unexploited rural markets
•Growing number of working youth
•Growing affinity of Indian customer in Chinese food segment
•Sustainance of health products and brand extensions
SUGGESTIONS
•Cuppa mania-not successful
•Dal and rice atta noodles not in stock
•More research on Indian psyche
•Irregularity in distribution to some shops