Maggi: 2minute noodles

A company which was created in 1872 in Switzerland after Julius Maggi took control of his father’s mill. Later it merged with NESTLE in 1947 and afterward the Maggi as brand was launched in 1982.

The Swiss Public Welfare Society commissioned Maggi in 1882 to create a vegetable food product that would be quick to prepare and easy to digest to help women who have less time to prepare meals. Since then the main targeting of Maggi was people with busy lifestyle. It is also famous among chefs in Hong Kong as 89% of chefs use Maggi products in their meal creation. 2 minute instant noodle was huge success from Maggi in India which targeted the busy and young segment of the consumers.

Maggi-India-Nestle

Segmentation

“Customers preferences differ, so we focus on the segment(s) we can serve best.”

(Iacobucci.)

Segmentation allows dividing heterogeneous market into groups of homogeneous customers which share same needs and demands. Maggi segmented the market on the basis of lifestyle and eating habits of consumers. Segmentation can be divided on the basis of different information.

DEMOGRAPHIC

Old customer will plan and economize time and money leading to more time spent. Females who combine outside work with household work are likely to experience greater time constraints (Zeithaml 64). Age and gender aspect of demographics was taken into account by Maggi by focusing on young working people who didn’t had much time to prepare a meal and that is how Maggi two minute noodle was a success.

GEOGRAPHIC

South and east parts of India where majority of the population consume rice. Maggi segmented the market accordingly and launched its rice noodles to attract and fulfill the needs of the customers. Variants like curry, masala, tomato, shahi pulao and chicken were introduced to attract customers from different regions

PSYCHOLOGICAL AND BEHAVIORS

A customer may report eating health but the grocery scanner data can be compiled to show the behavior of the customer. Since the customers from the urban and the rural region differ in their eating habit and their grocery expenses which is why it is available in 5INR small pack also to attract the rural customers along with the urban customers and to have a positive consumer behavior it launched Maggi Atta whole wheat flavor to make it more nutritious.

TARGETING

“Marketers select their ideal customer segment(s) to target”

(Iacobucci.)

To facilitate the identified segments the approach of targeting is used. Two perspectives are used to assess the attractiveness of each segment.

FIRST HOW LIKELY IS IT THAT THE SEGMENT WILL BE PROFITABLE?

SECOND DOES THIS SEGMENT FIT WITH WHO WE ARE?

The targeted segment by Maggi is kids, youth, office goers and working individuals. From the beginning the main focus of the company was to develop food products for people with busy lifestyle which aligned with the targeted segment answering the second perspective of targeting.

NESTLE gained its 34% of the total revenue from its noodle and soup. Maggi noodles are the most wanted noodles in India answering the first perspective of targeting.

nestle-pie-chart_625x350_61433401308

Positioning

“WHAT IS YOUR POSITION IN THE MARKET SPACE? HOW DOES CUSTOMERS SEE YOU?”

The purpose of POSITIONING is to create a clear and unique image of the brand and its offering in the eyes of customer. This competitive edge and the company’s distinct focus and then lead to its differentiation from other brands.

Conducting qualitative testing and making use of the perceptions of consumers related to the brand are a part of positive positioning.

To position itself as the topmost brand Maggi uses all of the above principles:

  1. Product Differentiation

Maggi claims that its item is healthy and can be made in 2 minutes. This is the claim which only Maggi make and this has led to their “differentiation” from other brands in the view of the general population.

  1. Positioning statement

In every one of the promotions, Maggi more often than not utilizes its mass appeal. In this appeal, it tries to involve every age group. Currently, it utilizes health and wellbeing appeal to compel mothers to utilize Maggi for their children. It has effectively situated itself in the brains of the clients as a Healthy and fast food, Good to eat. It has connected to consumers on an emotional level.

  1. Product Image

Maggi is a word which reverberates with the word noodle. In India, Maggi word is utilized all around rather the word noodle. That is the reason other brands have a hard time in building up their item.

  1. Service Differentiation

For maintaining its picture in the business sector, Maggi always contributes time and cash to think about the need, prerequisites and the desires of its customers. It is therefore on the top among its rivals like Sunfeast, Horlicks, Top Ramen and so on.

 

REFERENCES

Iacobucci.,. Marketing Management. Cengage Learning, 2014. Print.

Doehring, J. 2003, “Set your company apart!”, Compoundings, vol. 53, no. 4, pp. 14.

Prounis, C. 2007, “POSITIVE POSITIONING: 10 Steps to Achieving Standout”, Medical Marketing and Media, vol. 42, no. 2, pp. 55-55,57,59,61,4.

Zeithaml, Valarie A. “The New Demographics And Market Fragmentation”. Journal of Marketing 49.3 (1985): 64. Web.

By

Harpreet Singh

215478804

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s