Thursday, June 30, 2011

Initial Strategies of Maggi In India


Maggi faced a lot of hurdles in its journey in India. The basic problem the brand faced was the Indian psyche. Initially Nestle tried to position the noodles to working women since it was more convenient. However, the sale of Maggi was not picking up despite of heavy media advertising. To overcome this Nestle conducted research and then repositioned its products as convenience for mothers and fun for children. The tagline- ‘fast to cook, good to eat’ was also in accordance with the entire campaign. This strategy worked well in the Indian context and did wonders for Maggi brand in India. 

SWOT Analysis of Maggi as Brand
Strengths

  • Established Family Brand
  • Strong Global Corporate Brand ( NIL )
  • Specialization in food processing category marketing and distribution in Urban
  •  Market leader
  • Presence of other product segments of food category : Dairy Products,
  • Chocolate, Infant foods
  • Pioneer and Leader so 1st mover advantage in Noodles, Sauce, Ketchups and
  • Soup market.
  • Nestle symbolization of warm, family & shelter
  • Research and Development Division in India
  • New Noodles Plant in Uttaranchal
  • Innovative flavours for Indian taste buds
  • Distribution Channels
Weakness
  • Generic Brand to Noodles in India
  • Low rural market presence constraints
  • Uniform Brand for all food category
  • Brand Proliferation
  • Heavily dependent on one flavour
  • Health related issues
Opportunities
  • Growing package and canned food market in India by 15% annually.
  • High brand awareness of Indian consumer
  • Other product category like Biscuits, Chips and Ready to Eat Market still unexplored.
  • Opportunity to be substitute to other snacks category of food products.
  • Unexploited rural market
  • Increasing number of working youth
  • Affinity of Indians to Chinese food
Threats
  • Competitors with long history in product category Internationally like, Heinz Sauce and ketchups of Heinz Indian, Top Ramen in Noodle and Knorr Soups.
  • Single product focused competitors like Heinz sauce and Wai Wai Noodles.
  • Less Entry Barriers in the Market segment for product category
  • ITC’s strong base in Indian Market.
  • Substitute Product to Product Segment
  • Competitive pricing
  • Strong presence of regional competitors

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