4 UGC-Magginoodlesresearchpaper
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Marketing Paradigms For Rural lndia Dr. Thomas T. Thomas
TNTRODUCTION
Many fast food items have flooded the markets, but noodles have emerged as the most
popiu. item as they are cheaper, and very easy to make . Maggi has revolutionized the
.onc"pt, and the prlduct go"t ittto a majority of the urban households' Maggi controls
the urban and the semi-urban markets. The Brand is popular in: Australia,India,
Malaysia, and New zealand. Maggi is at the 3 5th position among the top 1 00 brands
of
India'.
Nestlelndiais asubsidiaryofNestle S.A. of Switzerland,whichwas foundedin 1866by
HenriNestle, markets products in 130 countries across the world. In 2001, the company
earned revenues of $ Sb.Z billion and a net profrt of $ 3.9 billion, and was ranked 55
in
FMCG companies. Nestle
the2002Fortune 500list. Nestle has established itself as one ofthe world's most successful
launched in 1982 in tlie
India Limited is the market leader in Indian Noodle Market, with its Maggi Brand of Noodles
in India.
packaged food market of India. Nestle took several years to establish its Noodles brand
RESEARCHMETHODOLOGY
The study aims to determine the strategies adopted by Maggi noodles to
grow its market share. For this purpose,
secondary data has been collected from various sites, magazine & newspapers.
Mullana,Ambala,Haryana'
* Lecturer,MM Institute ofManagement, Maharishi MarkandeshwarUniversiry
E-mail : rajni5dec@gmail.com
accessed onAPril 10' 2011'
,
3RAND JOURNEY - ATESTIMONY IN ITSELF
,&
ln the last twenty five years, we have just asked for 2 minutes of your time : Today, India is the largest market for
rttaggi Noodles. To gauge the success of the brand, check out the following it has among the Kids, there is even an
lrkut/Facebook community of Maggi Lovers. Initially, Nestle tried to position the noodles'brand on the platform of
ronvenience, targeting working women. However, it found that sales were not picking up despite heavy promotion-
lesearch then show-ed that kids were the largest consumers of the brand. Realizing this, Nestle repositioned the brand
owards kids using sales promotions and smart advertising. However, the fact lies that even if the target market
were
single men and women. The
lids, a survey *o.rta reveal that a considerable slice of Maggi noodles' consumers are
,ricing and tle variety in tastes are the added advantages. In 2005, Nestle made a smart move. It knew that although
i<1s l&enoodles, theparents were bothered aboutthe health aspect
ofthe noodles, whichwas madeof maida (refined
lour). Hence, Maggiiaunched Maggi,4ra Noodles with the baseline 'Thste bhi, health bhi'.It also produces rice
oodles & instant noodles known as "Hot Bowl" noodles name d "Cuppa Mania" tnltdia'
DIFFERENTIATION)
STPD ( SEGMENTATION, POSITIONING, TARGETING,
ANALYSIs
3. Positioning
1. Segmentation:
a. Easy to cook, Good to Eat
a. Age
b. 2-minuteNoodles
b. Lifestyle
c. Tasty bhi, HealthY bhi
c. Eating habits of urban families
4. Differentiation
2. Targeting
a. Veg. attanoodles- Health conscious
a. Kids
b. RiceMania- Teenage
b. Youth
c. Cuppa Mania- Working women & office goers
c. Office Goers
d. Workingwomen
b. Increase in distribution'
c. Focus on other segments other than children & working women'
d. Higher expenses on Promotion.
e. In the year 2000, Maggi became the leader in the branded instant noodles
segment'
COMPETITORS OFMAGGI
1. HindustanUniliver's Knon ;
2. GlaxoSmithKlines's Horlicks Foodles ;
'OSSIBLEALTERNATWES
+strengthen And UseThe Distribution:NlLshouldfocus ondistributionchannels anduse ofthe distribution channel
r expand its market to Rural India with products iike Maggi targeted to the market. It is the way in which it could
icrease its volume of sales.
, lncrease The Usage Of Maggi Brand Products: Since Maggi Noodles is a market leader, it has to adopt a strategy to
:rease the usage of the product to protect its market share. As it cannot further gtow sales drastically in the same
gment, the only way is to increaseproductusage likeNoodles forbreakfast.
Launch Health Awareness promotion Campaign: NIL should launch Health Awareness campaigns to educate
nsumers about the benefits ofhealth food. It can sponsor health camps, publishhealth information.
UTLOOK
cording to the FICS1 'Food and Beverage Survey' published in February 2006, health foods,
health-food
rplemelnts, convenience foods and branded foods were the 'rapidly rising' segments of
the food and beverage
food products was growing at a healthy rate of around 1 5
ustry. The survey also revealed that the market for branded
,.ni i' the early 2000s. The changing lifestyles and eating habits of Indian consumers and the increasing
this growth. '
:hasing power ofthe growing middle-income group were thought to be the reasons behind
n thougih the demaJfor convenience foods was increasing in India in the
early 2000s, anaiylts said thatmost of
Lndian consumers were still conservative in their food habits, and
gave importance to the perceived health benefits
Noodles, despite their 'health'
aditional food. Therefore, it remained to be seen whether products like Maggi,4//a
s, would prevail in the long nm. India's booming middle class
is still slightly suspicious ofpackaged and processed
q, and it can aflord to be. it often is the household h.lp thut prepares meals, so why pay extra to save
time for your
instant
i one ready-to-eat food that has found its way into the Indian kitchen, though, is Maggi noodles' The
first broughthere by Nestl6 in the '80s started as an after-school snack and have grown up with their
res
- -
lmers to an easy-to-make after-work meal.
tVaggi magic may not continueforever," Ankit Bansal, consultant with Data monitor's consltmer markets. As a
is tryingto
,gii*bri or companies are gunningfor themarket. Aline of noodlesfromHorliclcs cqlledFoodles
-e.customers with interestrngJlavori wnh catchy ndmes like "Ala Masala,"
"Curry in a Hurry," and "Slice of
-
lRE OF MAGGI NOODLES IN INDIA
which has dominated instant noodles for neatly ttfee
:rstant n..dles, foods major Nestle's flagship brand
(GSK) Horliclcs
:, is losing market share on a month\ basis
to newer entrants such as GlaxosmithKline's
Ramen and several other
Hindustanunilever's (HUL) Knorr sow noodles,Big
Bazaar's Tasty Treat,Top
,
players, acc.fding to data W tft murket re*earch
firm\ielsen (a global marketing & advertising research
*rban markets, had
ry). The data shows that Maggrs share
of instant n..dres, oo uo uil-rodia basis, acr.ss
excludingthe
inthe penodbetweenDer.*tuiog to ru\y'10. shares of Magglinstantnoodles,
t consistent\ new c.mpetiti.n'
to g6.5% ftom g0.1./. nry* 2010 a[ over India. Analy$s say with
to expand the {
re\ri product, slipped
ls market share is certain to get rmpacted.
Ho*.n.r, they also say thatNestle has the potential
n
-crore instant noodles category'
estimates, the instant noodle market in India
is worth over {
rding to Ankit Bansal, consultant with D_atamonitor
responsiblefor this growthinclude arise
r_crore and is growin gatarateof over n-ioy"peryear. "Maiyreasons on
parents' Iack of time' and premium placed by consumers
,
number of working professionals tivirg aiay:f'om
CONCLUSION
Good quality and cheaper products can be pushed in the market with systematic strategy and network. Maggi has
around 86.5 per cent market share, down from around 90 per cent a year ago. But private brands like Future Group's
Tasty Treat andAditya Birla Retails'Feasters are making theirpresence felt. Devendra Chawla, Head, Private Labels.
Food and FMCG, Pantaloon Retail, says, "We ltave seen an excellent growthfor our private brand".In Future Group
stores, Maggi is the No 1 sold brand, while Tasty Treat is in the second slot6.
There have been, at different points of time, different competitors who attempted to replacdMaggi from the breakfast
lunch/ dinner bowl, but have, in the long run, failed to do so. Competitors like Top Ramen and others are good for the
occasional change in taste, but it is Maggi that still remains a staple on the dinner table.
Maggi has slumped 5 places to a lowly 33rd position. There's a bigger reason for the fall and that is its unsatisfactorl
performance during the past year with extensions like atta noodles and Maggi Rice Noodles with three variants. These
are efforts by Maggi to affix the health tag to its already tasty image, but the consumer stili has to develop a taste for the
newvariantst.
The company needs to take a number of steps to increase its market share:
1. Conduct promotional campaigns in schools in small towns.
2. Focus on creating distinctive image, based on twin benefits of " Instant " and " Healthy " .
3. Maggi had to offer Pasta as the Indian Pasta market is seeing a huge growth.
4. Maggi must adopt a low price strategy to retain the price conscious segment.
5. Maggi should extend the reach to the rural areas by providing additional offers.
5htto://wwwjimandaz.com/searchNews.aspx?newsid=32659/2010/05/29
accessed on April 10, 201l.
' htto://www.business-standard.com/india/index2.php/2010/02l04 accessed on April 10, 2011.
'http://www.iipm.edu/iipm-editorial-746.html. accessedonApril 10,2011.