A caselet on Maggi 2 minutes Noodle

Presented by: Karan Jalan Deepak Singh Negi Vikas Srivastav

Sagun Balram
Priyadarshni Singh

Nestle

NESTLE SA IS A SWISS MULTINATIONAL PACKAGED FOODS COMPANY FOUNDED AND HEADQUARTERED IN VEVEY, SWITZERLAND FOUNDED IN 1866 BY HENRI NESTLE. NIL-THE INDIAN SUBSIDIARY OF THE GLOBAL FMCG MAJOR S.A.

NESTLE HOUSE(INDIAN HEADQUARTERS)-GURGAON,INDIA

INTRODUCED MAGGI BRAND IN 1982 ENTIRELY NEW FOOD CATEGORY-INSTANT NOODLES-INDIAN PACKAGED FOOD MARKET. STARTED OFFERING NEW HEALTHY PRODUCTS UNDER MAGGI. NESTLE INDIA PRODUCT LINE INCLUDES MILK PRODUCTS, BABY FOOD, BEVERAGES, READY TO COOK, CHOCOLATES AND CONFECTIONERY ETC.

Maggi

The original company came into existence in 1872 in Switzerland, when Julius Maggi took over his fathers mill. Started with a bunch of convenient food products. Merged with Nestle in 1947 In India first came up with the product Instant noodles. Gradually Increased product line. Later repositioned itself as a food brand that makes healthy products which was inline with strategy adopted by Nestle.

Product Line (Taste Bhi Health Bhi)

Current products include:
1.

MAGGI Vegetable Multigrainz Noodles

2.
3. 4. 5.

MAGGI 2-Minute Noodles

MAGGI Vegetable Atta Noodles MAGGI Cuppa Mania MAGGI Sauces

6.
7. 8. 9. 10. 11. 12. 13.

MAGGI Pichkoo
MAGGI Pazzta MAGGI Healthy Soups MAGGI Magic Cubes MAGGI Bhuna Masala MAGGI Coconut Milk Powder MAGGI Pasta & Pizza Sauce MAGGI Masala-ae-Magic

2 Minute Noodles

NIL introduced Maggie in year 1982. First introduced was Maggie 2 minutes noodles.

Maggie was the first packaged food in the market.

2 min Noodles got the first mover advantage. Because of this advantage the product retained its leadership till early 2000. Major Competitors: Top Ramen Smoodles and Cup Noodles manufactured by IndoNissin Ltd Sunfeast Yippee Ching's Instant Noodles Tai Pai Noodles & NE Time noodles by Maruti quality Foods Products Pvt. Ltd

1. 2. 3. 4.

5.

Foodles by Horlicks

DECLINE

In 1990s sale was decreased due to new product Top Ramen entering the market.

In order to attract more customers the formulations was changed which received negative feedback and further lowered sales.
Until March 1999 when the company had to go back to the original formulation of the product.

Even though the market of packaged foods was increasing , still Indian consumers preferred traditional simple food over instant and convenience food.

REPOSITIONING

In early 2000 NIL started introduction of healthy foods. They introduced Maggie Atta noodles , Dal Atta noodles etc to the existing line to give health benefits to consumers. Later flavors such as Tomato, Masala, Curry and Chicken were added to the product. This gave a competitive edge to the brand by highlighting health benefits associated with the products. Was given negative feedback by customer because of not having taste as good as the original variant.

Product life cycle

During Initial year company received tremendous growth with the product. Became market leader. Until 1990 when faced competition with Top Ramen. Repositioned itself as a healthy brand with nutritional benefits by introducing whole wheat flour and other variants of the product.

Reasons for failure (Brand Extension)

The market for such products were limited. Artificial flavoring and not as nutritious as soup made at home. Poor distribution and promotional activities. Taste was not up to the mark.

Thank You