Global Markets And Strategies: Research Of Maggi

Introduction

Maggi products are cornerstone for every meal. Quick and easy solutions - like bouillons, soups, seasonings and sauces - to aid cooking and add flavor with more vegetables and original flavors from vegetables, herbs and spices, grains and other nutrient-rich ingredients. Maggi originated in Switzerland in 1884, when Julius Maggi pioneered industrial food production, aiming to improve the nutritional intake of worker families. It was acquired by Nestle in 1947 Nestlé acquired the Maggi brand. Today the tradition continues around the world. Whether it’s Maggi jus, bouillons, soups or seasonings, professional kitchens have come to know and trust the Maggi brand for its high quality, convenience and nutrition.

Maggi in India and North America

Nestle has a century old history in India. Though known for its milk products initially, Nestle India introduced of its marquee brand, Maggi instant noodles. “2 minutes noodle” was a metaphor for the modern India and reliable food for most of Indians.

By the early 1900s, the company was operating factories in the United States, the United Kingdom, Germany, and Spain. The First World War created demand for dairy products in the form of government contracts, and, by the end of the war, Nestlé's production had more than doubled.

SWOT analysis

Strength:

• History of more than a century
• Global Market Presence
• Trustworthy brand in Food Industry
• Multi-cultural cuisine flavors.

Weakness:

• Monotonous products
• Possible side effects due to food.

Opportunities:

• Variety of new food products
• Reaching Hamlett and village areas
• Restaurant chains.

Threats:

• Increasing competition
• Constant Legal obligations
• Commoditized name (Maggi=noodles).

Target market

The worldwide sold nestle product Maggie has received astonishing response across the globe Maggie usually targets young generation mostly kids and a higher prospect of mothers too. Maggie demonstrate the relationship between mother and child creating a promising impact on the customers. Maggie has also focused healthy fitness target group by introducing the products like wheat, oat and Atta Maggie in India.

Demographics: Target focus is on kids and youth, coming in a variety of flavors creating an influence on adults also.

Psychographic: From small stores to big supermarket stores like Walmart and Sobeys’s present everywhere.

Marketing Mix

Product Strategy: The instant noodles category has a wide variety and very popular globally. The major Maggi products in this category are 2-minute Noodles, Chicken noodles, Vegetable Multigrain noodles, Cuppa Mania, Hot Heads noodles, Oats noodles, Atta noodles. This is the backbone of the product strategy in the marketing mix of Maggi. In India it is available in Cream of Corn with pepper, Tomato Margherita, Green Pea with coriander, Dal Shorba with roasted garlic etc. Maggi is present all across the world where it operates. Seasonings are various mixes of spices and also act as cooking aid. In India it is available with the name of Magic Masala and Bhuna Masala. Soy sauce is a popular seasoning product all over the world. Apart from this in India a lot of varieties are available such as Maggi Rich Tomato, Maggi Hot & Sweet and Tamarind.

Price: Maggi uses a cost-based pricing strategy to tap in to various markets in the world. The competitive prices are compensated with high volumes of the products. This shows that competition and cost are the two major factors in the marketing mix pricing strategy of Maggi. Because of rising prices in various countries Maggi has smartly started reducing the quantity to keep the prices unchanged. Nestle strives to capture maximum market share with low prices and high-quality standards. As Maggi is trying to tap into all segments of income category it keeps differential prices in depending locations and across countries

Place: Maggi products are widely available due to the strong presence of Nestle. The distribution strategy followed by Nestlé is Producers to Distributors to Wholesalers to Retailers to Consumers. This is because it is consumed in a lot of volumes and generally in small quantities. Due to its so deep reach even into rural areas and small towns, it has gained it the top position. Maggi products are directly taken from the factories which are independently managed to Carry and Forward Agencies who then store in their large warehouses and pass them onto the wholesalers according to their demanded quantities. These quantities are then distributed among the retailers or to the end customer through hypermarkets, other small businesses and even its own kiosks to corporates. The retailers can be convenience stores or local supermarkets.

Promotion: Maggi has used advertising as its main promotional strategy to create awareness and for brand recall. Initially it focused on kids and working women who have very less time to prepare food. The advertisements mainly flashed on children viewing channels with effective tag lines of “Bas 2-minute” and the jingle “Maggi Maggi Maggi”. As sales promotional strategies over the years it has attached various free goodies with its products such as free samples, fun books and toys. Maggi has also offered discounts, Scratch n Win schemes. It also used many celebrities notably Amitabh Bachchan and Madhuri Dixit for brand endorsements.

Conclusion

Maggi has become more of an household brand, our everyday lifestyle and quick, instant food product and Hunger Savior, though it dealt with lot of controversies in recent times, especially in India, it is yet most trusted brand in India and all over the word. One can derive that the crisis will most certainly have an impact on Nestlé's revenue. There is an immense window of opportunity for Maggi’s rival brands. One can derive that the crisis will most certainly have an impact on Nestlé's revenue.