1. New Product Development
Maggi
By :
Reshma .mr
SS 09-11January 30, 2015 1

2. Journey
• First launch: 1882-83 , Switzerland
• By: Julius Maggi
• Maggi- Nestle merger: 1947
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3. Nestle
• Nestle is a Swiss company founded in 1986 by
Henri Nestle
• It market its products in 130 countries acroos
the world
• Nestle put nutrition as the core of their
business
• Main focus is on health and wellness
• Good Food, Good Life to All Consumers
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4. In India
• Nestle launched Maggi for the first time in
India in the year 1982
• Launched in different falvour:
• Masala
• Chicken
• Sweet&sour
• Capsicum
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5. • The Brand(Maggi) is popular in:
• India
• Australia
• Malaysia
• New Zealand
• Singapore
• South Africa
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6. • Nestle wanted to explore the potential for
such an instant food among the Indian market
• Nestle enjoys around 90% market share in this
segment
• India is the largest consumer of Maggi
Noodles in the world
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7. Initial Scenario
• Competition:
• Ready to eat snacks segments
• Home made snacks
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8. Cont.
• Positioned as: hygienic home made snack
• Targeted for: women ( wrong target group)
• Research shows: Children as the biggest
consumer
• Repositioned as:
• ‘convenience product’ for mothers &
• ‘fun’ product for kids
• Using sales promotions & smart advertising
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9. January 30, 2015 9

10. Journey Cont.
• During 1977:
• Change in formulation
• Change in taste of Maggi
• In 1999:
• Relaunched with the original taste
• “ 2 minutes” proposition
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11. • Maggi’s first product extension: 1988
• Maggi instant soup
• In 2001:
• Maggi became core brand of Nestle
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12. Cont.
• In 2005:
• Launching of “Maggi Atta noodles”
• Baseline: “Taste bhi Health bhi”
• Product well received by the Indian Consumer
• Recent launch: Rice noodles
• Maggi: A brand that knows the customer and
willing to learn from the mistakes
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13. Range
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14. Variants
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15. SWOT
strengths
Market leader
Brand loyalty
Distribution
channel
Innovative
falvours
Advertising
strategy
weeknesses
Heavily
dependent on
one flavour
Health related
issues
Opportunities
Unexploited
rural market
Increasing no. of
working youth
Affinity of
indians to
chinese food
Threats
Strong presence
of regional
competitors
Competitive
pricing
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16. Market penetration strategies
• Promotional campaign in schools
• Advertising strategy: focusing on kids
• New product innovation:
• Veg. Atta noodles
• Dal Atta noodles
• Cuppa mania
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17. Cont.
• Availability in different packaging:
• 50 gm
• 100gm
• 200 gm
• Family packs(400 gm)
• Conducting regular market research
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18. Hurdles faced
• Sales saw a decline in 1990’s:
• Formulation changed from fried base to air
dried base
• Competition increased in market-palce:
• Top Ramen-Indo Nissin ( Japanese co.)
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19. Cont.
• New product launched in market but failed:
• Dal Atta noodles sambhar falvour
• Maggi launched some products under their
brand, but these products were un-successful
• Ketchups, Soups, Tastemakers etc.
• Latest threat to Maggi: Knorr
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20. Current Scenario
94%
4% 2%
world market share
Maggi
Top ramen
other local
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21. Cont.
• Leading brand in India as well as World
• Reasonable competitive pricing
• Creative interaction blogs for customers:
• www.maggi-club.in
• Focus mainly on health issues.
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22. Suggestive promotion
strategies
• Focus on creating distinctive image, based on
twin benefits of “instant” & “health”
• Conduct promotion campaign in schools in
small towns
• Launch new advertising campaign with brand
ambassador
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