We studied the brand "Maggi" and made a report as part of our Marketing course. We have tried to make the report exhaustive.
We also have a done an online survey of 130 responses for the hypotheses we had considered. We also got into various more interesting conclusions which I am ready to share if any one is interested.
2. AGENDA
• Overview of Maggi Noodles
▫ Positioning and repositioning
▫ Advertisement
▫ Sales promotion
• Analysis of the product
• Competition
▫ Strategies adopted to tackle competition
• Distribution strategy
• Hypotheses
▫ Justification
▫ Instruments of data collection
• Analysis of data
• Net take away
3. Overview of Maggi
• Created in 1863 by Julius Michael Johannes
• Acquired in 1947 by Nestle
• Introduced in India in 1982
• Top Ramen - the first competitor in 1990
• Introduced new variants in 2005
• India the largest consumer of Maggi noodles
4. Positioning and Repositioning
• Positioning
▫ Initially introduced as easy to cook
▫ Focused on working women
• Repositioning
▫ Focused shifted to children
▫ Focused on health development
5. Advertisement
• Variety of TV commercials
▫ Constantly adapting
▫ Both customer and consumer centric
▫ Sponsoring famous television shows
Hum log in DD
• Social media
9. Sales Promotion
• Sampling
▫ Schools and offices (Targeting kids and working crowd)
• Return gifts on empty packets
• Maggi club
▫ Discounts on movie tickets for members
▫ Organized quizzes and sketching competition
• Discounts offered to retailers
▫ 7% discount on 6-pieces pack
▫ 5 rupee discount on 8-pieces pack
10. Analysis of the Product
STPD analysis
• Segmentation
▫ Maggi created a separate segment of instant noodles
• Target
▫ Kids, youth and working crowd
▫ Basically all „convenience-savvy time misers‟
• Positioning
▫ 2-minute noodles
▫ Snack market
• Differentiation
▫ Variety of flavors
▫ Packaging
11. Analysis of the Product
SWOT analysis
• Strength
▫ Established family brand – market leader
▫ Global corporate support
▫ Marketing and distribution channels
• Weakness
▫ No authentic noodles
• Opportunity
▫ Unexploited rural market
▫ Growing packaged food industry
▫ Increasing brand consciousness
• Threat
▫ Health issues
▫ Generic competition
12. Analysis of the Product
4P analysis
• Product
▫ Instant noodles
▫ A large pool of variants
• Price
▫ Affordable
▫ Inflation pricing strategy
• Promotion
▫ Initially – Working women
▫ Kids and youth
▫ Health centric
• Place
▫ Wide distribution network – High availability
▫ Satisfactory distributors and retailers
13. Competitors
List of major competitors
▫ Top Ramen
Nissin
Second largest noodles brand
▫ Sunfeast Yippee
ITC
Fresh competitor
▫ Horlicks Foodles
GSKCH
Fresh competitor
14. Strategies to tackle competition
• Maggi vs Top Ramen
▫ Maggi – first
▫ Maggi was more established
▫ Maggi changed the recipe
Top Ramen sees a short rise in sales
▫ Maggi rolls back to the old recipe
Top Ramen is back to square one
▫ Maggi obtained the health platform
▫ Major strategy by Maggi was “Do Nothing”
Strengthened its distribution channels
TopRamen‟s lack of competitive promotion
15. Strategies to tackle competition
• Maggi vs Yippee
▫ Differentiation of Yippee:
Shape of the noodle cake
Ability to consume long after cooking
▫ Strength of Yippee
Distribution of ITC
Umbrella branding strategy
ITC Conglomerate
▫ Went head-on to battle against Maggi
16. Distribution Strategy
• Traditional distribution
▫
▫
▫
▫
Carry Forward Agents (CFA)
Distributors
Wholesale dealers
Retailer
• Modern distribution
▫ Designated distribution
▫ Retail store chains
17. Distribution Strategy
• Nestle offers 6% margin for distributors
• Terms of sale:
▫ Distributors pay in advance
▫ Retailers buy on credit
• Variety of distributors
▫ Urban
▫ Rural
18. Hypotheses
1. Maggi is perceived by the consumers as a „quick-meal‟.
2. Maggi is considered healthy by both mothers and other
consumers.
3. Masala Maggi has reached the minds of consumers more
than its other variants.
4. Maggi was never seen as a substitute to regular Noodles.
19. Justification
• H1
▫ Product used over a long time
▫ Recent advertisements
• H2
▫ Major consumer – Kids
• H3
▫ Masala maggi – available since launch
• H4
▫ Positioning of Maggi was always a snack
20. Instrument of data collection
• Questionnaire
• Sample size:
▫ 100~120
▫ 40 parents
21. Analysis of data
• Q1 : Which of following would you prefer most for a snack? (Rank among
9 options)
Distribution of people's first choice of snacks
3%
3% 2%
2%
11%
37%
5%
17%
20%
Samosa
Vada
Kachori
Haldiram's snacks
Biscuits
Cakes
Instant Noodles
Chocolates
Chips
22. Analysis of data
• Q1
Distribution of people's first 3 choices of snacks
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
Rank 1
Rank 2
Rank 3
23. Analysis of data
• Q2 : Which of the following do you thing qualifies as a “quick-meal”?
(Rank among 9 options)
Distribution of people's first choice of quick meal
3% 2%
2%
7%
7%
26%
10%
12%
31%
Oats
Cerals
Dosa/ Idly
Roti
Fried Rice
Instant Noodles
Sandwich
Pav bhaji
Hot Dogs
24. Analysis of data
• Q2
Distribution of people's first 3 choices of quick meal
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
Rank 1
Rank 2
Rank 3
25. Analysis of data
• Q3 : What brand comes to your mind when asked about “instant-noodles”?
▫ 119/121 responses - Maggi
26. Analysis of data
• Q4 : Which of the following do you think are varieties of Maggi? (Check
boxes containing both correct and wrong options)
Tricky
Tomato, 25
Chicken, 58
Vegetable
Multigrainz, 69
Thrillin
Curry, 5
Masala
Maggi, 109
Vegetable Atta
Noodles, 98
27. Analysis of data
• Hypothesis 3 has been proven wrong
▫ “Vegetable Atta noodles” is almost as popular as
Masala Maggi
28. Analysis of data
• Q5 : Between Maggi and regular noodles (served in Fast
Foods/Restaurants), rate the parameters given below. (On a scale of 5. 1
being the lowest and 5 being the highest)
Mean Rating for Maggi
5.00
4.00
3.00
2.00
Mean Rating
1.00
0.00
Tasty
Healthy
Worth the
money
Easily
available
Quick to
Prepare
29. Analysis of data
• Q5
Number of people
Perception of Maggi among the minds of customers
100
90
80
70
60
50
40
30
20
10
0
Tasty
Healthy
Worth the money
Easily available
Quick to Prepare
1
2
3
4
5
30. Analysis of data
• Q5 (part 2)
Mean Rating for Regular Noodles
4.00
3.50
3.00
2.50
2.00
Mean Rating
1.50
1.00
0.50
0.00
Tasty
Healthy
Worth the
money
Easily
available
Quick to
Prepare
31. Analysis of data
• Q5 (part 2)
Perception of Maggi among the minds of customers
Number of people
60
50
40
Tasty
Healthy
Worth the money
Easily available
Quick to Prepare
30
20
10
0
1
2
3
4
5
32. Analysis of data
• Hypothesis 4 proved Right
▫ The two distribution of rating shows that the products
are not complimentary
33. Analysis of data
• Q6 : Would you like to consume Maggi on a regular basis?
Percentage of people who would consume Maggi
regulalry
26%
Yes
No
74%
34. Analysis of data
• Q6
Percentage of parents who would consume/feed Maggi regulalry
28%
Yes
No
72%
35. Analysis of data
• Q7 : If yes, at what situation would you like to have “Maggi” Noodles?
i.
ii.
iii.
iv.
v.
Regular day Breakfast
Evening Snack
When you‟re in a hurry
For a proper meal
A late night snack
Regular breakfast
Evening Snack
When you're in a hurry
For a proper meal
A late night snack
HEALTHY TASTY
1
0
0
1
0
MEAL
0
1
0
1
1
QUICK
1
0
1
1
0
0
0
1
0
1
36. Analysis of data
• Q7
Maggi as perceived by frequent consumers of the product
6%
30%
HEALTHY
TASTY
MEAL
46%
18%
QUICK
37. Analysis of data
• Q7
Maggi as perceived by the parents who consume/feed frequently
11%
33%
HEALTHY
TASTY
34%
MEAL
QUICK
22%
38. Analysis
• Hypothesis 1 has been proven wrong
▫ Even those who consume/feed Maggi regularly are
doing so not because it‟s filling (Meal)
39. Analysis of data
• Q8 : If No, what are the possible reasons behind?
i.
ii.
iii.
iv.
It‟s not tasty
It‟s not healthy
Expensive
I like variety
Reason why people would not consume
Maggi regularly
2%
27%
7%
I prefer more
variety each time
It's not tasty
It's not healthy
64%
It's expensive
40. Analysis of data
• Q8
Reason why parents would not consume/feed Maggi
regularly
5%
12%
5%
I prefer more variety each
time
It's not tasty
It's not healthy
78%
It's expensive
41. Analysis of data
• Hypothesis 2 has been proven wrong
▫ Both the entire population and the parents do not
consider Maggi healthy
42. Net take away
• Maggi has spent loads of time, work and money to imprint its brand in the
minds of the consumers
• Maggi noodles is not considered healthy at all
• Vegetable Atta noodles and Masala maggi are the most popular variants of
Maggi
• Maggi noodles has not yet been perceived as a meal
• Maggi noodles has not been seen a substitute for regular noodles