Maggi Noodles Final

Tap Your Noodle

The Maggi Noodles Brand in India

Introduction: Maheshwarie Jayasinghe Product: Menuka Raddalgoda Price: Maheshwarie Jayasinghe Place: Mohammed Shaakir Promotion: Abdul Basith Conclusion and Recommendations: Abdhul Basith

Market Demographics Demographics, Behavioral, and Psychographics

Region and Usage Rate: Urban – Heavy user Semi urban – Medium user Rural - Light

Occupation: House wives and kids working professionals self employed

Market Demographics Demographics, Behavioral and Psychographics

Social Class: Middle and upwards

Family Life cycle: Young, married, and married with children

Life style: Hard pressed for time

The Positioning of the Product Fast to cook- Good to eat 2 MINUTE NOODLES

“When Xerox is to photocopier and Colgate to toothpaste, Maggi is to Noodles in India …”

-The Economic Times

Food Consumption Patterns and Consumer Buyer Behavior

Target Markets Primary Target Children (< 16 )

Other Family Health conscious people – Maggi Vegetable Atta Noodles Young professionals - Maggi Cuppa Mania

The Young Professional

Cuppa Mania is a trendy ally of today’s multi tasking generation

What makes it so demanding??

Why is the product important?

Product

Marketing

Product Product modification suiting the culture Maggi Noodles for health conscious people

Methods of consumption 2 Minute Noodle concept

Product Modification Suiting The Culture

India is a country with a vast diversity of culture

Maggi Noodles for Health Conscious People Maggie Vegetable Atta Noodles Vegetarian 0% Cholesterol

Methods of Consumption Maggi Noodles have more than one way of consumption

Cooked

As a Snack

2 Minute Noodle Concept

Objective of current pricing strategy – Maximizing market share

What factors did the company consider when implementing a pricing strategy for the product? What is the company’s current pricing strategy?

What factors did the company consider when implementing a pricing strategy for the product? Price sensitivity The behavioral perspective of pricing Consumer buyer behavior Pricing strategy Main objective – Maximizing market share

What is the company’s current pricing strategy? The Indian customer's attitude Value for money Perceived value“small consumption – small price tag” Tapping the rural customer segment

What is the company’s current pricing strategy? Maggi Cuppa Mania Product quality leadership strategy Differential pricing Product offering Higher consumer value Comparative pricing method Regular price reviews

Place or distribution channel is one element of the 4 p’s which involves in the delivery of goods at the right time and at the right place to the consumers. It also involves warehousing. The distribution is possible through many varied channels. Good distribution results in a higher volume of sales. The cost of distribution varies from industry to industry but generally its about 20% of the total cost of the product Nestle maggi noodles has a very good distribution system in India. Its available in almost every part of the country.

Carry and Forward Agencies After production maggi noodles are directly shipped from the factories to carry and forward agencies located in each state. The carry and forward agencies provide the warehousing facilities that are required. The presence of carry and forward agencies in each state is also critical in ensuring that the taxes and other state level charges applied are lower

Distributors From the carry and forward agencies, the distribution takes place. The distributor has to pay in advance to the company but has to give the stock to the retailers on credit.

The 2 types of distribution 1. Distribution targeting traditional trade 2. Distribution targeting modern trade

Distribution targeting traditional trade

Wholesalers

Retailers

Retailers There are 4 broad categories Super ‘A’ - super high volume retailers ‘A’ - high volume retailers ‘B’ - medium volume retailers ‘C’ - low volume retailers

Direct Sales by the Company Another important channel of distribution to make the product available to the consumer is direct sales by the company at events such as trade fairs, carnivals and school events. This also will be help in promoting the product.

Promotion is an important element of marketing. Major source to reach their customers. Nestle adopts a promotion mix with a perfect blend of several different promotion tools.

What are the promotion methods use by company to promote Maggi Noodles brand? Personal Selling Advertising

Sales Promotion Publicity Public Relations

Personal Selling: The Market is geographically concentrated and products are custom made. All the stores sell Maggi Noodles

Advertising Well Known adverts in the market Attractive advertisements All Possible medias  Inclusive of cultural elements

Internet: the latest media coverage. Specific website for each product  Online competition  Easy strategies

Types of adverts Television Ads/Radio ads  TV Advertisements  Taglines: “Bhookh Lagi Hai” “Taste Bhi, Health Bhi”

Billboards Facebook fan page South India Cinema Magazine (Southdreamz) Celebrity Endorsements  Increased sales up to 19%

Sales Promotion Everyday eating coupon codes Free Samples Buy One get one free Discounts/offers for online purchases Promoting as Health Product Cooking conditions in packs and TV Ads Dual Adaptation/lingo adaptation

Recipes forums for Moms/ Events for children Using Indian stars increased sales up to 19%

Publicity/Public Relations

Publicity occurs  Interviews of Nestle Officials  The launch of a new product  When annual sales are published

Nestlé's World Walking day

Conclusions Establish itself as a brand consumed by all member of the family. It concentrated on 4 P’s of marketing R & D according to the needs of consumers.

Recommendations Establish Nestlé's own retail outlets Educate consumers through campaigning Use the package to describe the nutritious benefits Competition increases by 17%-20%. Do more market research and improve products.

References Majumdar, R. (2010). ‘Consumer Behaviour: Insights from Indian Market’. India: PHI Learning Private Ltd Srinivasan, R. (2008). ‘International Marketing’. (3rd edition). India: PHI Learning Private Ltd Keillor, B.D. (2007). ‘Marketing in the 21st century: New world marketing’. USA: Greenwood Publishing group Aswathappa, K. (2008). ‘International Business’. (3rd Edition), India Tata McGraw Hill Gupta, S. (2009). ‘Branding and Advertising’. India: Global India Publications’. Saxena, R. (2005). ‘Marketing Management’. (3rd Edition). India: Tata McGrawHill

Dublish et al (n.d). Impact of Socio cultural environment on the launch of Maggi- A Nestle Product Brand’ and the various strategies adopted by India’. http://www.scribd.com/doc/28297605/Impact-of-Socio-culture-Environment-on-the-Launch Gupta, A. (2007). ‘Maggi takes the health route’. http://www.slideshare.net/akhil.gupta/nestle-maggi

References Kiran et al, (2009). Distribution and Marketing Communication strategy for Nestles Maggi brand in India; Marketing Management Project http://www.docstoc.com/docs/30195704/Distribution-and-marketing-communication-strategyfor-Nestle-Maggi http://www.icmrindia.org/casestudies/catalogue/Marketing/Maggi%20Brand%20in%20India.ht m