Success Stories of MAGGI and NIKE Strategic Management

1. SUCCESS STORIES….
It’s all about the Strategic
Management
Presented By:
MANIK KUDYAR
MBA-HRM
1200712

2. What is Strategy???
The word “strategy” is derived from the Greek
word “stratçgos”; stratus (meaning army) and
“ago” (meaning leading/moving).
Strategy is an action that managers take to
attain one or more of the organization‟s goals.
Strategy is a well defined roadmap of an
organization.

3. It defines the overall mission, vision and
direction of an organization. The objective
of a strategy is to maximize an
organization‟s strengths and to minimize
the strengths of the competitors.
Strategy, in short, bridges the gap between
“where we are” and “where we want to be”.

4. Strategic Management
Strategic Management is all about identification
and description of the strategies that managers
can carry so as to achieve better performance and
a competitive advantage for their organization.
An organization is said to have competitive
advantage if its profitability is higher than the
average profitability for all companies in its
industry.

5. Success Story of
“MAGGI”

6. The Origin
 In Switzerland in 1863, Julius Michael Johannes
Maggi developed a formula to bring added taste to
meals.
 This marked the beginning of the Maggi brand and
its lines of convenient food products.
 Maggi merged with Nestlé in 1947. Maggi has
been offering high quality and innovative products
ever since.

7. Indian Success
 Maggi owned by Nestle is a brand that created a category for itself in
the Foods market in India.
 The brand which is famous for the Noodles has evolved into the
umbrella brand for Nestle in the Food segment.
 Nestle launched its noodles in the Indian market in the early 1980's.
 Nestle wanted to explore the potential for such an Instant food among
the Indian market.

8. Maggi has faced lot of hurdles in its journey in
India.
The basic problem the brand faced is the Indian
Psyche.
Initially Nestle tried to position the Noodles in
the platform of convenience targeting the
working women. But it found that the sales are
not picking up despite heavy promotion.

9. The Repositioning Strategy
 Research showed that Kids were the largest
consumers of the brand.
 Realising this, Nestle repositioned the brand
towards the kids using sales promotions and smart
advertising.
 Now Indians are the largest eaters of Maggi
Noodles in the world. Maggi Noodles is a
MARKETING SUCCESS STORY.

10. The NISSIN Effect
 It was during the late 1990‟s that Indo Nissin - a Japanese company
launched its Noodles brand "Top Ramen" with lot of promotion and
with SRK endorsing the brand.
 TopRamen gave Maggi a run for its money.
Change in Taste (Maggi)
- A Big Failure
- The consumers rejected the new taste of Maggi.
Maggi – It’s Back
- And in 1999 Maggi relaunched Noodles with the original taste.
- Nestle was ready to accept the consumers verdict and it paid off
handsomely.
- Top Ramen could not sustain the growth it had for long.

11. STP of MAGGI
Segmentation on the basis of:
- Life Style
- Eating Habits
Targeted the:
- Kids
- Working Women
Positioned themselves as:
- A Healthy Fast Food
- Slogan “2 minute noodles”

12. EXPANDING THE SPECTURUM,
SLOGANS & TAG LINES
 Bas 2 Minute : Promising mothers of FAST TO COOK and GOOD
TO EAT snacks
 MAGGI KETCHUP -- “Its Different”
 SOUPS -- “Taste bhi, Health Bhi”
 Products like NOODLES (Masala, Tomato, Chicken), Cuppamania
 Low Salt and No Trans Fat products
 Vegetable Atta Noodles and Dal Atta Noodles

13. BRAND EXTENSION
 Health conscious Families, for attracting the families
 Competitors: KISSAN, HEINZ, TOPS etc…
 New Entrants
 To overcome the problem of decline in sales

15. Another Friend…
 Inviting people to send new recipes made with the
help of Maggi
 There Maggi Stories
 Organizing Contest, Games and Industrial Visits for
School Kids
 Using Attractive Advertising Campaigns

17. Success Story of
“NIKE”

18. The HISTORY of the BRAND
 Nike was established by a couple of students from the
University of Oregon.
 Phil Knight - was engaged in running (an athlete), and
his companion - Bill Bowerman was his athletic trainer.
 In the early 60's American sports shoes cost about $
5, and the quality was appropriate.
 Athletes got blisters, but one could not afford to buy
expensive, high-quality German shoes.

19.  In 1964, Knight and Bowerman developed their business plan to sell
inexpensive shoes by designing them in America, manufacturing in
Japan (due to cheap labor), and selling it in the United States at
lower prices than the German footwear.
 The first batch was sold from the truck near the tracks. So were
earned first 8 thousand dollars. The partners decided to continue to
cooperate with the Japanese and the project was named BLUE
RIBBON SPORTS.
 1965 was a year of changes for the company name to the Greek
goddess of victory Nike, which the manager of the company saw in
a dream. By this time, Knight had already managed to sell shoes
worth $ 1 million.

20. Timely Innovations
1975 - Corrugated Sole
1978 - Light Weight Shoes
- In the year 1980, Nike was second only to REEBOK
- To become #1, Focus shifted to the ADVERTISING side

21. Air Jordan Brand Phenomenon
 In 1984, Nike decided on a daring advertising campaign with
basketball legend Michael Jordan.
 The company signed a contract in which Jordan had to play in
these shoes.
 The legendary Air Jordans were sold out like hot cakes.
 The company's revenues grew from 870 million to $ 4 billion within
a year.
 Jordan became part of the culture of Nike.

22. The Positioning Strategy
 Demographics (18-40), M/F, social class)
 Lifestyle (active teens, athletic/sporty individuals, casual
lifestyle with fashionable taste)
 Behavior (sneakers as fashion statement, fitness craze,
multipurpose shoes)

23. I‟m fulfilled when I feel
important and recognized
I want the
status symbol of
being the best
I want to belong to
the coolest group

24. Marketing Mix Strategy
PRODUCT, PRICE, PLACE & PROMOTION
 Nike‟s is known for their footwear. It has designed a whole line up
of footwear for almost every sport.
 Different types of shoes: running, basketball, soccer, cross
training, football, tennis, golf
 Shoes for Kids, Men and Women
 The Clothing Line

25. Promo: Print Ads

26. Promo: Athletes

27. USING BIG TEAMS

28. Catchy Phrases/ Taglines

29. Nike products are distributed
worldwide
 Malls
 Retail stores
 Partnered stores
 Factory outlets
 Worldwide
 Online stores

30. Developing New Technologies
 DRI-FIT
- Latest Edition:
 NIKE SPHERE TECHNOLOGY: WARMTH WITHOUT THE
WEIGHT
„Meet Sphere, our exclusive technology innovation that keeps
you warm without the excess weight‟.

31. “If you have a body, you are an athlete.
And as long as there are athletes, there will be Nike”.