CASE STUDY
Introduction to company
Nestlé's relationship with India dates
back to 1912, when it began trading as The Nestlé Anglo-Swiss Condensed Milk
Company (Export) Limited, importing and selling finished products in the Indian
market.
After India's independence in 1947,
the economic policies of the Indian Government emphasized the need for local
production. Nestlé responded to India's aspirations by forming a company in
India and set up its first factory in 1961 at Moga, Punjab, where the
Government wanted Nestlé to develop the milk economy. Progress in Moga required
the introduction of Nestlé's Agricultural Services to educate advice and help
the farmer in a variety of aspects. From increasing the milk yield of their
cows through improved dairy farming methods, to irrigation, scientific crop
management practices and helping with the procurement of bank loans.
Nestlé India manufactures products of truly international quality under
internationally famous brand names such as NESCAFÉ, MAGGI, MILKYBAR, KIT KAT,
BAR-ONE, MILKMAID and NESTEA and in recent years the Company has also
introduced products of daily consumption and use such as NESTLÉ Milk, NESTLÉ
SLIM Milk, NESTLÉ Dahi and NESTLÉ Jeera Raita.
Nestlé has been a partner in India's growth for over nine decades now
and has built a very special relationship of trust and commitment with the
people of India. The Company's activities in India have facilitated direct and
indirect employment and provides livelihood to about one million people including
farmers, suppliers of packaging materials, services and other goods.
Brand maggi
NIL introduced the Maggi brand to Indian consumers when
it launched Maggi 2 Minute Noodles, an instant food product, in 1982 (Refer to
Exhibit III for the history of the Maggi brand). At that time, Indian consumers
were rather conservative in their food habits, preferring to eat traditional
Indian dishes rather than canned or packaged food. In fact, NIL was trying to
create an entirely new food category, instant noodles, in India. Initially, the
company targeted working women on the premise that Maggi noodles were fast to
cook and hence offered convenience.
NIL aggressively promoted Maggi noodles through several schemes like
distributing free samples, giving gifts on the return of empty packs, etc.
NIL's advertising too played a great role in communicating the benefits of the
product to target consumers.
4 PS Evaluation
PRICE:
·
Considering
the price points in the market for maggi, it should continue to position itself
in the snacks.
·
Affordable
by all income groups
·
Differentiated
packaging
·
Lower
price point strategy
·
Millipack
for rs5- targeting the lower middle class as well as those who want to consume
in lesser quantity.
·
Inflation
effect on volume than price- reduction of 100gm pack to 95gm, keeping price as
rs. 10 only
·
Multi
packs at cheaper price per noodles
Place:
·
Wide
distribution network.
·
Limited
penetration in rural areas.
·
The
company has a complex supply chain process.
·
Target
roadside eating joints.
·
The
distribution network is well spread.
Product:
·
Quality
·
Models
and sizes
·
Packaging
·
Brands
·
Service
Promotion:
·
Nestle
also followed up these launches with ‘it’s different’ ad campaigns.
·
Nestle
was focusing their ads based on children’s taste and health.
·
In
addition to promotional activities, maggi associated itself with mainstream
television programme and advertised heavily on kids channels.
·
Maggi
is now targeting its products at the entire family and not only kids.
·
Maggi
has recently launched “MAIN AUR MERI
MAGGI” campaign in commensuration of 25 years of maggi in India.
Main aur meri maggi:
STP:
Segmentation:
Market
segmentation divides the heterogeneous market into homogenous groups of
customers who share a similar set of needs/wants and could be satisfied by
specific products. Maggi Brand has segmented the market on the basis of
lifestyle and habits of urban families.
Targeting:
Market targeting
refers to evaluating and deciding from amongst the various alternatives which
segment can be satisfied best by the company. The maggi brand have mainly
targeted the kids, youth, office goers and working woman which falls into the
category of convenience-savvy time misers who would like to get something
instant and be over with it quickly.
Positioning:
Market
positioning is the act of designing the company’s offerings and image to occupy
a distinctive place in the minds of the target market. The goal of positioning
is to locate the brand in the minds of consumers to maximize the potential
benefit to the firm. Maggi has positioned itself in the snacks category and not
in the meal category since Indians do not consider noodles as a proper food
item. Therefore maggi have developed its brand image of instant food products
with positioning statements such as “2 minutes noodles” and “easy to cook” and
“good to eat”.
Differentiations:
Points of difference are attributes or benefits consumers
strongly associate with a brand positively evaluate and believe they could not
find to the same extent with a competitive brand. The maggi brand has also
differentiated its brand image from its competitors in terms of taste, flavors
and packaging. Maggi have launched wide varieties of products in different
flavors which can attract larger set of consumers. Maggi products are also
available in different sizes catering to different customer needs.
Unique selling price:
Convenience is and was the
unique selling proposition of Maggi when it was launched in 1984. For the first
time, consumers got something that was hygienically packed and convenient to
prepare. It was also the first fusion experiment on food in India.
TWO minute maggi:
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