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
