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CONTENTS1. Introduction to Nestle and Maggi2. 4 P’s of marketing mix3. Brand recall and future scope4. Conclusion
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 dishesand cooking aids, Beverages , chocolates and confectionary•Nestlé anticipates consumer needs in order to provide taste,nutrition, health and wellnessTurnover in India: 36471million rupees (2007)Profit: 4138 million rupees
NESTLE MAGGI•NIL launched maggi brand in India in 1982•NIL offers lot of culinary products such as instantnoodles, soups, sauces & ketchups, cooking aids undermaggi brand•First entrant in instant noodles category in India•In 2005, ‘MAGGI TAKES THE HEALTH ROUTE’•Launch of dal atta noodles in May, 2006
MARKET SURVEYOBJECTIVE:To collect information regarding 4P’s of MaggiMethod used: Interviews of shopkeepers, distributors and consumersArea of survey : Nerul AND New PanvelShopkeeper sample collection: General stores(19), medical stores(5),sweet shops(4), malls(2)Consumer sample collection: kids, youngsters, housewives, office goersShopkeeper sample size: 30Consumer 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
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&DPACKAGING AND SIZES•Available in packs of 50g, 100g, 200g, 400g, 600g and 800g•Colourful packaging•Maggi cuppa mania comes in attractive sleeved cups with afork for usage
PRODUCT SAMPLE FINDINGSVARIETY: predominant demand for maggi masala and lesser demand for curryand cuppa maniaQUALITY: very few experimental flavors accepted by consumers, they still prefertraditional masala flavorDESIGN AND FEATURES:Cuppa mania, rice noodles, dal noodles were not verysuccessful, production stopped for rice noodles, dal noodlesPACKAGING/SIZES:plastic paper packaging, convenient carry packs for Rs 10,family packs also available
PRICESMaggi 2 min noodles(Masala, curry,tomato,chicken) – Rs 10 per100gmsMaggi Atta Noodles – Rs 15 per 100gmsMaggi cuppa mania(chilli, regular)-Rs 25 per 100gmsTetrapacks (400gms)-Rs 39 Six pack (600gms)-Rs 57DISCOUNTSIf you join Family Nestle, you receive•Exclusive 10% discount and free home delivery on all Nestleproducts ordered online•A special 10%discount for shopping at Nestle staff shops•Special family Nestle offers etc
Maximum sold product: Rs 10 packet followed by Rs 5 packetDiscount: six/eight tetra packs are priced at Rs 57, Rs 68, whichare very popular in malls. The malls offer 50 paise discounts onbulk purchases.Payment period: credit of 4 days is allowed by the distributorsPayment terms Commision terms
PROMOTIONPOSITIONING AND INITIAL PROBLEMS•2 minute noodles-Between snack meals•Initially targeted at working women•Presence of Top RamenSALES PROMOTION:• Use of posters, hangers and tanglers.•Point of sales•Backdrops on shelvesADVERTISING•Children centric advertising•Maggi club-contests, games etc•Use of tag lines
PLACE•Maggi follows an intensive distribution network in the urban market•Seven factories- Punjab, haryana, Uttarakhand, Goa(2), Karnataka, Tamil NaduPLACE SURVEY FINDINGSCHANNELS:• Malls, distributors, shopkeepers•Centralized distribution for big retail outletsCOVERAGE: Covers both residential and college areasLOCATIONS:Nerul, New panvelINVENTORY: Weekly stock distribution to the shopkeepersTRANSPORT:Minor distribution problemsASSORTMENT:Available in general stores, retail outlets,medical stores, sweet shops and bakeries
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 extensionsSUGGESTIONS•Cuppa mania-not successful•Dal and rice atta noodles not in stock•More research on Indian psyche•Irregularity in distribution to some shops