Maggi Noodles in India: Creating and

Growing the Category

Case Study
Introduction:
Instant Noodles Maggi was launched in 1983 in India when the
Indian Consumers were fairly unknown to the instant noodles and
limited to vermicelli, chow mein which were occasionally used.
It was a challenge to establish the brand in such market which is
considered to be conservative and typical about food
consumption. Maggi is a Pioneer Brand in packaged food market in
India.
In 2010, it was rated as No. 1 brand in India and India became the
leading market for noodles within Nestle.
History
Nestl's relationship with India dates back to 1912, when it began trading as The
Nestl Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling
finished products in the Indian market.
Nestle set up its first factory in 1961 at Moga, Punjab, where the Government
wanted Nestl to develop the milk economy.
Nestle in 1970 launched its 2 minute instant noodles under Maggi brand in
traditional noodle eating markets of Malaysia and Singapore.
Due to convenience of Instant Noodles, Nestle believed that it would also attract
other markets and launched the brand in Australia.
My massive sampling program and consistent marketing plan, it became successful
in Australia and with same thought and believe, they launched the product in Indian
Market.

Questions
1) How can an MNC successfully launch a product category that is new to
the Indian market? By marketing Mix
2) How can an MNC fight off local competitors, who are arguably closer to
consumers? By building consumer base & distribution network
3) How can an MNC bring its global competencies to strengthen its
competitive advantage in the Indian market? By Worldwide
competencies of Manufacturing
4) How does an MNC continue to renew itself toward off competition
from other global competitors? By repositioning and brand extension
5) The multi-level leadership that is required to succeed in the Indian
market. By continuous commitment from all level of leadership

Q#1. How can an MNC successfully launch a product
category that is new to the Indian market?
Air Space in retailing stores was
uses at the Point of Purchase
Packaged attractively with
vibrant colors
Tagline Fast to Cook, Good to
eat used to depict product
convenience
Target Market was Mothers
Sponsored Maggi Good Food Quiz
in Schools
Wide Spread Sampling was used
Low price was kept i.e. less
than INR5 per 100gm pack
Instant noodles
Formulated dry cake instead
of wet and soupy
Aligned with consumer taste
by introducing Spice
Supplement
Convenient light meal
Product Price
Placement Promotion
Marketing
Mix
Q#2. How can an MNC fight off local competitors,
who are arguably closer to consumers?
By building a Loyal Consumer Base:
Up to 2 decades, Nestle kept focus on Target Market i.e. Mother
The communication remained consistent and built around Mother & Childern
bond
Highlight the convenience of product
Reached out to school kids by sponsoring quiz and organized Minithons to
encourage active life style
Wide spread sampling were introduced to go reach teenagers and adult.
Q#2. How can an MNC fight off local competitors,
who are arguably closer to consumers?
By building strong Distribution Network:
2 tier Distribution System that is with own distributor and with wholesalers
and redistributor.
Effective supply chain
Strong emotional connection of Sales team with the brand

Q#3 How can an MNC bring its global competencies to
strengthen its competitive advantage in the Indian market?
In 1947, the Maggi products, from seasoning to soups, become part of the Nestl family following
the merger with Alimentana S.A
Nestle brought worldwide competence to the operations in India
Quality is the is kept utmost important in Manufacturing
For most of the part, manufacturing was kept in house by using latest technology with better price
of equipment.
Process improvements were implemented for debottlenecking of process and for recovering and
minimizing wasted material
To keep the cost low as major part of it was material, supplier development program were initiated
for quality and cost effective supplier
Other major driver of cost was packaging, product shape was kept constant
R&D on packaging material for alternate material for packaging to minimize the cost while keeping
the quality same.
Highest quality and lowest cost was the USP of Maggi


Q#4 How does an MNC continue to renew itself toward
off competition from other global competitors?
By repositioning the Brand from Taste and Convenience to Taste and Health i.e. using
Health Platform to broaden the consumer i.e. young adults
Basic product benefit - good taste with proper nutrition levels and good health
Different products were launched and extended the Health and wellness push to other
products like soups along with noodles
By Brand Extension and penetrating into bottom-of-the-pyramid segment by selling Chotu into
low income consumers
Communication was done in local language other than English and Hindi
Distribution system was revolutionized using Sting Boys carrying products in cycles and
reaching the small areas
By launching Communication Campaigns to build emotional connection with consumers





























Q#5 The multi-level leadership that is
required to succeed in the Indian market
Nestle India organized as Business Units with Central Support
functions servicing all business
Support and help from Corporate office from experts in head
office and from peers in cluster countries.
Focusing on the priorities from Head and continuous commitment
Local Food Head, trained and experienced in MNC environment.
Using local experienced staff in key position who are well aware
of culture and consumer priorities.