Nestle - Maggi

Aniket Sanyal – 18BM60157

Neeraj Bhuyan - 18BM60141
J A Jaya Prakash - 18BM60047
Ravi Bhaskar B - 18BM60093
Aakash Singh - 18BM60001
NESTLE Vision & Mission
The mission is to provide consumers with the best tasting, most
nutritious choices in a wide range of food and beverage categories and
eating occasions, from morning to night.

Vision
To rapidly build Nestle India as the respected and
trustworthy leading food, nutrition, health and wellness
company ensuring long term sustainable and profitable
growth.
PESTLE Analysis
Political
• Nestle should focus on various political dynamics such as import export excise duties, taxation, government
permission to enter into the target segment and also to introduce hygiene products that are allowed by the
regulated bodies in India.
• Nestle should comply with the changes in regulation surrounding food standards (Maggi issue) and
marketing actions.
• The company should also consider the government stability and recognize risks involved
• Nestle needs to consider the changes in global regulations and maintain its quality standards.
Economic
• The Indian consumer being price conscious, Nestle should price their products accordingly.
• It is important to be cognizant of changing inflation, income levels of the consumers and economic growth
rates.
• Nestle has taken an initiative to produce its products at a local level to satisfy its consumer as well as to
promote the economic worth of farmers.
PESTLE Analysis
Social
• Nestle has committed to reduce salt, sugar, sodium and trans-fats content in its product for the Indian
consumers keeping their health in mind.
• The company adheres to its strong values and principles in order to build the trust of its consumers.
• Nestle promotes family time in a world of convenience through its Maggi Noodles.
Technological
• With the help of social media, Nestle should try to penetrate different segments and create awareness about
its products through various campaigns. For example, #WeMissYouMaggi campaign was used to revive
Maggi Noodles after it was banned in India. Tie up with Snapdeal to facilitate the comeback of Maggi
Noodles.
• There is a tremendous scope in using e-commerce as a platform for marketing.
• The use of technology will help narrow down the gap between the consumers and the company and thus it
allowing direct interactions between them.
• Nestle is uses the state of the art technology for the production of various products, they are meeting the
global standards by installing the contemporary plants.
PESTLE Analysis
Legal
• The legal Different countries have different rules and regulations about food production ways, employment laws, copy
rights etc.
• In addition to this, every country formulates legal policies keeping in mind the current needs of the country and the
people residing in the country
• Recently maggi faced Legal Issues dealing with June 5 FSSAI Order and the Provisions under FSS Act, 2006 and Legal
Issues with respect to Celebrities liability for Brand Endorsement under FSS Act, 2006.
Environmental
• Food industry always demands high level of hygiene production techniques. So Maggi has to focus on these factors
while producing the food items.
• The noodles and other seasoning it produces should be nutritionally fine so that these issues cannot effect the
business operations to create bad image of the company in the minds of the customers and make then loyal ones.
 4 P’s of marketing mix
Product
• Instant Noodles
-Maggi 2 minute noodles
(Masala, Chicken)
-Maggi vegetable atta noodles
-Maggi rice noodles mania
-Maggi cuppa mania
-Maggi Red heads
• Maggi Healthy soups
• Maggi Sauces
• Maggi pickles
• Maggi Pasta
 Price

• Maggi 2min noodles (masala,curry,tomato,chicken) – Rs.12 per 100 gms

• Maggi atta noodles – Rs. 18 per 100gms
• Maggi Cups mania – Rs. 25 per 100gms
• Tetrapacks (400 gms) – Rs. 44
• Six pack (600 gms) – Rs.65
 Promotion
• Positioning and initial problems
- 2 minute noodles-Between snack meals
- Initially targeted at working women
- Presence of Top ramen
• Sales Promotion
- Use of posters, Hangers, and tanglers.
- Point of sales
- Backdrop on shelves
• Advertising
- Children centric Advertising
- Using big Bollywood entities to promote the product
- Use of Tag lines
Short Survey
 Place
• Maggi follows on intensive distribution network in the urban market
• Seven Factories – Punjab, Haryana, Uttarakhand, Goa(2), Karnataka, Tamil Naidu
• Place Survey Findings
- Channels : Malls, distributors, shopkeepers, Centralised distribution for big retail outlets
- Coverage: Covers both residential and college areas
- Locations: Nerul, New panvel
- Inventory: Weekly stock distribution to the shopkeepers
- Transport: Minor distribution problem
- Assortment: Available in general stores, retail outlets 4, medical stores, sweet shops and bakeries
4 C’s of Maggi
Customer

• Segmentation and targeting

 Kids and teenagers were major focus in 90s and early 2000s
 Later shifted to college students and young and working adults
 Working mothers are targeted through health value products like oat-meal and atta noodles

• Value created has remained same in minds of customers as evident from their dominance in
share of noodle market even after being banned in 2015
 Cost

• Competitively priced with similar products in the market

• Supplements and varieties offered are far greater than other
similar companies

Brand Weight (gm) Price Market

ranking
Maggi 2 70 10 1
minute
noodles
Patanjali atta 70 10 2
noodles
Yipee 70 10 3
Ching’s 70 10 4
Chinese
noodles
Top Ramen 70 10 5
 Convenience

• Over the years maggi has brought combo packaging ( including several
packets in one) to suit needs of different segments of customers like
family etc.
• Incorporated needs of working class people to include ready to eat
meals like cuppa noodles
• Easily available in almost all online retail outlets like Big Basket, Grofers,
Amazon etc.
 Communication

• Easy availability and emotional attachment to the product has created an “economic moat”
around maggi which dissuades customers from switching brands. Through creative ads
positioned themselves as fun food for kids and mothers with slogans like
 Mummy bhookh lagi hai, bas 2 minute mein maggi tayar
 Fast to cook, Good to eat
 Taste bhi, Health bhi

https://www.youtube.com/watch?v=n6GwfzdTtRs ( maggi 1990s)

https://www.youtube.com/watch?v=n1P4tztf-oc ( maggi 2017 )
Thank you