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    Maggi: 2 Minutes Noodles Story

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    Mangesh Kadam
    Maggi noodles were initially launched in India in 1982 but failed to gain traction as Indians preferred rice and roti for meals. Nestle then repositioned Maggi as an evening snack for children, targeting a time when eating habits were not strongly formed. Through effective branding, advertising focused on children, and wide distribution networks, Maggi became very popular in India. However, in 2015 Maggi faced a ban after tests found higher than permitted lead levels, severely damaging its market share. Nestle worked to regain consumer trust through safety clearances and a public relations campaign using social media to celebrate Maggi's return.

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    Maggi: 2 Minutes Noodles Story

    Uploaded by

    Mangesh Kadam
    58 views13 pages
    Maggi noodles were initially launched in India in 1982 but failed to gain traction as Indians preferred rice and roti for meals. Nestle then repositioned Maggi as an evening snack for children, targeting a time when eating habits were not strongly formed. Through effective branding, advertising focused on children, and wide distribution networks, Maggi became very popular in India. However, in 2015 Maggi faced a ban after tests found higher than permitted lead levels, severely damaging its market share. Nestle worked to regain consumer trust through safety clearances and a public relations campaign using social media to celebrate Maggi's return.

    Original Description:

    Maggie Case STudy

    Original Title

    Maggi

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    Maggi noodles were initially launched in India in 1982 but failed to gain traction as Indians preferred rice and roti for meals. Nestle then repositioned Maggi as an evening snack for children, targeting a time when eating habits were not strongly formed. Through effective branding, advertising focused on children, and wide distribution networks, Maggi became very popular in India. However, in 2015 Maggi faced a ban after tests found higher than permitted lead levels, severely damaging its market share. Nestle worked to regain consumer trust through safety clearances and a public relations campaign using social media to celebrate Maggi's return.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    58 views13 pages

    Maggi: 2 Minutes Noodles Story

    Uploaded by

    Mangesh Kadam
    Maggi noodles were initially launched in India in 1982 but failed to gain traction as Indians preferred rice and roti for meals. Nestle then repositioned Maggi as an evening snack for children, targeting a time when eating habits were not strongly formed. Through effective branding, advertising focused on children, and wide distribution networks, Maggi became very popular in India. However, in 2015 Maggi faced a ban after tests found higher than permitted lead levels, severely damaging its market share. Nestle worked to regain consumer trust through safety clearances and a public relations campaign using social media to celebrate Maggi's return.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 13

    Maggi

    2 Minutes
    Noodles
    Story
     History
    • Maggi brand started with humble beginnings in
    the late 19th century in Switzerland.
    • Started by Julius Maggi, who later launched
    Maggi ready-to-use soups in 1886. 
    • Later in 1947, when the brand spread swiftly
    Nestle bought it in 1947.
    • Nestle in India known as Nestle India
    Limited(NIL) launched the Maggi noodles.
     Initial Failures
    • Almost 100 years after 1882, in 1982, Nestle launched Maggi Noodles in
    India, targeting the same segment of working women.
    • Maggi targeted a new category called Instant Noodles in consumers’
    minds. 
    • Their positioning was a Convenience Product and an alternative for
    Meals and Dinner.
    • Nestle realized that it’s not easy to enter the minds of Indian Consumers
    • In India, people’s preference for rice and roti for lunch/dinner was deeply
    ingrained. They were not ready to substitute Maggi for the same. 
    • After the initial surge, the sales had almost come to standstill.
     Successful Repositioning
    • Nestlé's research showed that breaking people’s automated behaviour for lunch/dinner
    would be expensive, So they looked for routines where habits are weak or yet to form.
    • The Weak Spot With Least Resistance — Nestle identified “Evening Snacks” where
    User Behaviour is not strong towards any particular solution.
    • Nestle also identified that Children liked the taste of Maggi Noodles. So, Nestle changed
    the target segment from Working Women to “ Children”.
    • Maggi’s 2-minute cooking tagline shows that working women can save TIME and
    EFFORT.
    • Also Maggi’s TV “2 min Video” ads showed how to cook noodles — Consumers saw that
    there are only 2–3 simple steps in cooking
    Brand
    Building
    BRAND BUILDING IN INDIA
    Maggi : The name which showed the power of branding

     Nestle had to promote noodles as a concept,  Strong Visual Identity :


    before it could promote Maggi as a brand. When it comes to branding, your visual identity
    play a huge part in creating a great impression
    whether it be the first one or an everlasting one.
     They used strong taglines which tapped on
    the problem statements to address this. • Colour Selection
    • Logo consistency 
    • 2 minutes noodles : Convenience • Packaging
    • Taste Bhi Health Bhi : Health
    • Happiness in 2 minutes : Fun & Happiness
    BRAND BUILDING IN INDIA
    Hanging Basket !
    Simple idea, but brilliant.

     Displayed well in the store without taking any shelf space.


     It is very much visible to the people visiting the store.
     So the idea was implemented across India and it was very
    successful in convincing the store keepers to keep Maggi in
    their stores.

    Product Promotion
     Promoted through advertising and was positioned as fun food for kids
    which mother can cook easily.
     Distribute free samples and give Exciting Prizes.
     Associated itself with many TV programmes and also advertised on
    many kids channels.
     Run various campaign to attract consumers.
    Dominant Distribution power
     Maggi has followed the Distribution channel of Nestle to
    Distributor to Retailer to Consumer, as a chain system is helpful in
    proper distribution of the product.

     Nestle : The Company has decentralized the process of


    manufacturing where every plant is responsible for its
    own production.

     Distributors : The Company offers its distributors a


    clear-cut margin of 6%. In this scheme, the distributor
    makes advance payment to the company but supplies
    the product on credit to the retailers.

     Retailer : The retailer in turn gets a 15% margin on


    promotional products and 10% margin on normal
    products.

    distribution has been the backbone for the success of the product.
    Controversy
    Ban &
    Re-Entry
    Controversy, Ban & Re-Entry in India

    Causes of Controversy
    • Higher lead concentrations than permissible in the noodles.
    • Underestimate the severity
    • Failure to communicate with the consumers

    Effects :
    • Market share dropped from 80% to 5%
    • Nation wide ban
    • 6 weeks provides to prove safety standards
    Controversy, Ban & Re-Entry in India

    Rebuilding Maggi and Re-Entry


    • Cleared the safety taste and allowed for sale
    • Concerns in the consumers due to previous ban
    • No communication during the ban/Lack of
    human touch in responses/fail to accept mistakes
    • Introduce a consumer perspective PR campaign
    • Use of Digital and Social Media with
    #wemissyoutoo and #GoodNews
    Controversy, Ban & Re-Entry in India

    • Exclusive deal with Snapdeal for selling


    Maggi welcome kits
    • #DILKIDEALWITHMAGGI on twitter after
    resume of sale
    • 60,000 Maggi Welcome Kits within 5
    minutes of the Maggi Flash Sale
    • Various online Competitions to celebrate
    Maggi’s comeback.
    • Regained 57% of market share by 3rd quarter
    of 2016
    Made By -
    Mangesh
    Sumit
    Yogesh

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