Nestle India Ltd. Marketing Plan

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PRODUCT BACKGROUNDNestle India Ltd. (NIL), the Indian subsidiary of the global FMCG major, Nestlé SA, introduced the Maggi brand in India in 1982, with its launch of Maggi 2-Minute Noodles, an instant noodles product.1By launching Maggi noodles, Nestle created an entirely new food segment - instant noodles - within the larger category of Indian packaged food market. Nestle gained the First-mover advantage, and has successfully managed to retain its leadership in the instant noodles category.

Later, NIL extended the Maggi brand-name to a variety of culinary products like soups, sauces and ketchups, and condiments. However, these extensions of the brand were not as successful as the instant noodles. More recently, Nestle has tried to give a 'healthy' bent to products under its Maggi brand, in a bid to attract health-conscious consumers.

OBJECTIVE ANALYSISBy undertaking this study, we intend to look at the various phases in the product life cycle of Maggi noodles in India. By completing a situation analysis, we expect to gain better knowledge by analysing the company, its environment and the market it operates in. The project shall help us in understanding how a top marketer like Nestle identifies its customer base and consistently manages to deliver superior value to them.

We also aim to explore the strategies used by Nestle India Ltd to create and establish brand Maggi successfully in the crowded Indian food market. The insight gained thus shall be helpful to us in understanding, and arriving at a complete Marketing Communications Program for Nestle Maggi.

SITUATION ANALYSISDefine the Product / Competition‘Bas do minute’ is all it still takes to put a hot, steaming bowl of MAGGI on the table. Twenty-five years after the instant noodle brand from Nestle made its way into Indian kitchens, it has managed to create a category for itself in the food and snacks market in the country, wonderfully fitting into the breakfast-lunch-dinner-in-between snacking slot. From innovative ad slogans to innovations in recipes, MAGGI has tried everything to capture the Indian market. After many years of facing competition from the traditions of society, it has also had to counter the ‘smoodles’ campaigns of Top Ramen (Indo-Nissin Ltd) and more recently Ching's Instant Noodles, AA Nutritions's Yummy, and Wai-Wai (Chaudhary Group).

Analyze the Category1. Aggregate Market Factorsa)Market Size: MAGGI enjoys an enormous 75-80% of the Rs. 1000 crores instant noodle market.2b)Growth: The market is expected to grow at a rate of 15 percent on year to year basis, while the growth rate of MAGGI is pegged at a level lower than the average, at around 10%.

c)Stage in Product Life Cycle: The product life cycle is a product traces the stages of a product’s acceptance from its initiation to its decline. The four stages being, introduction, growth, maturity and decline.3Introductory stage: With the launch of MAGGI noodles, NIL created an entirely new food category of instant noodles in the Indian packaged food industry. Because it had the first mover advantage in this category, NIL successfully managed to maintain its leadership.

Growth stage: 20 years back, MAGGI noodles enjoyed around 50% market share in this segment which was valued around Rs. 250 crore. However, in the 1990s, the sales of MAGGI noodles declined due to growing popularity of Top Ramen, instant noodles manufactured by Indo-Nissin Ltd. In order to improve the sales, NIL changed the formulation of MAGGI noodles in 1997. But, their strategy went awry as the customers did not like the taste of new MAGGI noodles. In 1999, the company reverted to its previous formulation of the noodles, which brought MAGGI back on track.

Maturity stage: Currently, MAGGI noodles is in the maturity stage of its product life cycle. Dominating the market for the past 25 years, the MAGGI noodles currently has 5 variants: Masala, Chicken, Atta, Rice and Cuppa Mania. The company is focusing...
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