1.

EXECUTIVE SUMMARY:
Nestle India is a subsidiary of Nestle S.A. of Switzerland. With six factories and a large number of co-packers. Nestle India is a vibrant Company that provides consumers in India with products of global standards and is committed to long-term sustainable growth and shareholder satisfaction. The company is known for its brand in the Milk Products & Nutrition, Prepared Dishes & Cooking Aids, and Chocolates & Confectionary segments. Nestle leads the value sales of noodles in India with a market share of 79.3%. A testament to Nestles domination of the sales of plain noodles is the fact that for its instant noodles brand Maggi, among all its global offices. India accounts for the highest level of volume sales for the company. The Company goal is to get 85% of the market share by 2014. The marketing plan analyses; the current marketing mix of Maggi Noodles, studies the popularity of the Maggi, its situation, Its Marketing Strategy, and to obtain the break even analysis of it.

2. INTRODUCTION:
Ever since its launch in India in 1983, this brand has become synonymous with noodles. The bright red and yellow colours of the packet with the brilliant blue2 -minute Noodles printed on it has found a place on every kitchen. Over the years, Maggi has grown as a brand and positioned itself as a fast to cook! Good to Eat! food product. The history of this brand traces back to the 19th century when the industrial revolution in Switzerland created factory jobs for women, who were therefore left with very little time to prepare meals. Due to this growing problem Swiss Public Welfare Society asked a miller named Julius Maggi to create a vegetable food product that would be quick to prepare and easy to digest, Julius the son of an Italian immigrant came up with the formula to bring added taste to meals in 1863. Soon after he was commissioned by the Swiss Public Welfare Society, he came up with two instant pea soups & a bean soup- the first launch of Maggi brand of instant foods in 1882-83. Towards the end of the century. Maggi company was producing not just powdered soups, but bouillons cubes, sauces and other flavourings. However in India (the largest consumer of Maggi Noodles in the world!) it was launched in 1980 by Nestle group of companies. Maggi had merged with Nestle family in 1947. When launched it had to face a stiff competition from the ready to eat snack like biscuits, wafers etc. Also it had other competitor the so called home made snacks which are till today considered healthy and hygienic. Hence to capture the market it was positioned as a hygienic home-made snack. But still this didnt work, as it was targeted towards the wrong group, the working women. After conducting an extensive research, the firm found that the children were the biggest consumers of Maggi Noodles. Quickly a strategy was developed to capture the kids segment with various tools of sales promotion like pencils, fun books. Maggi clubs which worked wonders for it. No doubt the ads of Maggi have shown a hungry kid saying Mummy bhookh lagi hai to which his mom replies bas do minutes! And soon he is happily eating Maggie Noodles. Further the Maggi 2-Minute Noodles has been renovated to provide 20% of the RDA of Calcium and protein for the core target group building on the nutrition proposition Taste bhi, Health bhi. The company could have easily positioned the product as a meal, but did not, as a study had shown that Indian mentality did not accept anything other than rice or roti as meal. They made it a easy to cook snack that be prepared in just two minutes. The formula clicked well and Maggi become brand name.

3. SITUATION ANALYSIS:
Product Attributes: Nestles Maggi Noodles is the leading brand in the instant noodles segment in India, enjoying a market share of 79.3%. The brand has grown to an estimated Rs. 200 crore & contributes to around 10 % of Nestle Indias top line. Being the pioneer in the noodles market has given it a first movers advantage over other brands. Maggi has regularly come up with new flavours and has recently launched hungrooz catering to the increasing demand for healthy snacks. 3.1 Market Summary 3.1.1 Target Markets Children, Youngsters and for health conscious people. 3.1.2. Market Demographics Demographics: Region: urban, semi-urban, rural Occupation: Housewives, working professionals, self employed Sex: male, Female Income: 1, 00,000 p.a upwards Social Class: Middle and upwards Family life cycle: Young, single, married with children. Behavioural: Occasions: Regular, Everyday user-urban, rural-depends on the temporal aspects of the consumers life (varied usage in terms of time of time of day, week, month, year). User Status: first time user-rural, potential users-semi-urban, heavy users-urban. Usage Rate: Heavy user-urban, light-rural, medium-semi-urban. Loyalty Status: hard core and shifting loyal. Buyer-Readiness Stage: rural. Some are aware, semi urban; some intend to buy (aware, informed), urban; informed (some desire, some intend to buy). Attitude toward product: Enthusiastic, positive.

Psychographic: Lifestyle: Hard pressed for time

3.1.3. MARKET NEEDS The urban Indian is used to having his dinner late from around 8:30 pm to as late as 11 pm. Hence a convenient snack between lunch and dinner is often exercised option. In rural areas, smaller period packs stimulate demand. Maggi is a fun and convenience brand which sits strongly in its positions as a good to eat, fast to cook anytime snack and its popular across different age groups. Opportunities In practically all consumption categories arise in terms of reach and medium of consumption. Hence the onus is on the company to make it easily available and affordable and in different sizes, catering to different categories of users like the new Maggi chota pack conveniently priced at Rs. 5 for 50 grams. The Indian palate is not too adventurous in terms of trying out new flavours. In fact today, Maggi have settled at standard flavours such as curry, masala, tomato and chicken and not much experimentation is necessarily required in the noodles market. People prefer to have it easily available and affordable. 3.1.4 MARKET TRENDS The FMCG market is set to treble from US $ 11.6 billion to 33.4 billion in 2014. Penetration levels is only 30% for Maggi noodles in urban areas as well as per capita consumption for Maggi noodles is less. It is indicating the untapped market potential. Burgeoning Indian population, particularly in the middle class segments and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer upgrading in the matured product categories. Manufacturers are introducing low-priced goods in smaller pack sizes. As a result, the rural marketing efforts have pushed the demand for sachets in many consumer goods markets. Smaller packs have become popular in smaller towns and villages, where households cannot afford to buy larger packs due to financial constraints. Rapid urbanisation, increased literacy and rising per capita income, have all caused rapid growth and change in demand patterns, leading to an explosion of new opportunities. Around 45 per cent of the population in India is below 20 years of age and the young population is set to rise further. Increased health consciousness and abundant production of quality soyabean also indicates a growing demand for soya food segment.

3.1.5. CURRENT MAGGI NOODLES BRAND IDENTITY: Physique: Yellow packaging, Tasty. Personality: Playful children, Hurried youth Relationship: Fast to Cook and good to eat, Mummy bhook lagi,Taste bhi health bhi Culture: Family, Single Reflection: Family oriented, Fun loving Self-Image: Kid, Independence

3.1.6. PRODUCT OFFERING: Maggi Noodles comes in 7 variants: 1. Masala: This is the original and most widely liked flavour of Maggi and hence has been brought out in 6 different packaging sizes, the maximum in any variant 2. Chicken 3. Curry 4. Tomato 5. Vegetable atta noodles: Launched with Taste bhi health bhi focus 6. Vegetable Dal atta noodles 7. Hungrooz

3.1.7. PRODUCT DISTRIBUTION Maggi Noodles is being sold through grocers, convenience stores, supermarkets and miscellaneous channels. Mostly Indian still prefers to buy from kirana stores. Because of rising culture of malls there is a slight increase in distribution through supermarkets/hypermarkets. 3.1.8. COMPETITORS: 1. Top Ramen: The brand come with ad of Dont be a noodle, be a smoodle Variety: Packet Noodles: Masala noodles, Funky Chicken, Oye tomato, Curry smoodles. Cup Noodles: Spicy, Vegetable, Tangy Chicken Came up with innovative flavours and its Cup noodles. Distributor: Marico Industries Limited
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2. ITC SUNFEAST PASTA: ITC launched Indias first instant pasta snack, Sunfeast Pasta treat. Made from high protein Durum wheat, Sunfeast Pasta treat is not fried and does not contain maida, making it a nutritious snack. This ready to cook pasta comes with a sauce maker inside the pack. Variety: Masala, Tomato and cheese, Sour cream onion and Cheese. Sunfeast has come up with durum wheat and is promoted as a healthy alternative to instant noodles made from less healthy maida. Distributor: ITC Limited KEY TO SUCCESS: Maggi has had the first mover advantage with respect to the instant noodles segment in the Indian market. Continued innovation in terms of flavours and themes from an ordinary 2 minute bite to a healthy snack. CRITICAL ISSUES AND CHALLENGES: To sustain its growth and maintain its position as the leader in the instant noodles segment: Nissins Top Ramen and ITCs Sunfeast pasta have been eating market share of noodles market. To be increasingly viewed as the preferred snack of Indians.

SWOT ANALYSIS: Strengths Strong brand recall and the product is almost eponymous to the brand. Market leader with 79.3% market share in terms of value. Having advertising share(72%) Emotional relationship with the consumer. A strong distribution network of the parent company Nestle. Weakness Tagged as a product having no health value. It has tried to bring in innovation but has failed(dal atta noodles). The product features have remained almost constant since inspection in 1983 with any trial of innovation misfiring. Market Share fallen from 80% to 79.3%. . Threats Competition is increasing with established competitors in other segments are foraying into the noodles segment seeing the capacity of growth. Top ramen the prime competitor has come up with new exciting instant noodle offerings like cup noodles and mug noodles which threatens to eat maggi market share. Foreign players like Wai Wai and Rum Pum have forayed into the noodles market and have made their brand presence in estern markets while indigenous. Parle is threatening to offer their distribution network to international noodle brands wishing to make an entry. Top ramen has repositioned itself on a health platform with a new baseline Get on Top fortifying its product with calcium and vitamins. The product as priced higher than its main rival Top Ramen.

Opportunities The instant noodles segment is projected to grow at a tremendous rate with the market size doubling by 2015. Increase in the potential consumer base i.e. single working professionals and student population. Rapid economic growth and rising disposable incomes make a strong case for a premium brand like Maggi. Upward trend of convenience food consumption. Huge untapped serviceable upward class rural base.

4. MARKET STRATEGY:
MISSION: To be considered as the number one snacking option of India combining the values of convenience, taste and health. MARKETING OBJECTIVES: Increase value market share to 85% in the instant noodles market by 2014 from the current 79.3%. To promote Maggi noodles as a healthy ready to eat convenient food among mothers and single working professionals. To provide line extension by introducing hungrooz noodles. To upgrade the existing product features viz. packaging, ingredients, special additives based on consumer feedback. TARGET SEGMENTS FOR MAGGI NOODLES: Maggi 2 minute noodles: A Maggi 2 minute instant noodle is already associated with convenience and taste and is currently accepted as a valid filling snack between meals. Maggi will continue to leverage its brand equity and target the following segments for this product. Children and Tweenagers: This is a large segment and is maggis stronghold. The age group between 4to 14 years has largely similar tastes and is traditionally targeted by maggi. These segments perceive Maggi instant noodles as a change in taste from the regular Indian fare and they are fascinated by the curly shaped noodles. For these segments innovative products also have novelty value, however, certain dominant preferences emerge. Realizing this early, Maggi shifted focus from the lady of the house to the end consumers i.e. Children themselves ending up as the market leader of the instant noodles segment.

Studying Age: The studying is segment though not traditionally targeted specifically has been devouring Maggi 2 minute noodles. The proposition of convenience of cooking as well as that of a tasty filling snack attracts this segment which due to erratic schedules keeps missing their regular meals.

MAGGI CUP O NOODLES A Maggi Cup O noodle is maggis answer to Nissins Cup noodles. With reduced cooking time of a minute, ease of preparation and no need of separate plates Maggi Cup O noodles promises to appeal to anyone in need of a quick, convenient bite. Maggi Cup O noodles being a premium priced product, the segment targeted should one which is ready to pay a premium for a quality convenient food. The following segment promises to the best bet. Young Adults: The growing class of affluent young adult does not mind paying higher prices for quality products. They are hard pressed for time and would pay a premium for convenience. This segment is growing and has the potential of accepting Maggi as a mainstream food item as they see instant noodles as a natural part of Indian food culture. POSITIONING OF MAGGI: MAGGI 2 MINUTE NOODLES Maggi 2 minute noodles will continue with its current positioning of convenience and as a fast to cook, good to eat snack as this seems to be working well. To prevent Top Ramen, the main competitor, from eating into its market share some product innovation is required as otherwise Maggi may get stereotyped as an unexciting product. Top Ramen is following a cost differentiation technique. To deal with this Maggi has to position itself as a differentiated product. The market is very sensitive to taste and rejects any flavour it dislikes with Maggi having learnt hard way, thus the product cannot greatly differentiated with on basis of taste. On the other hand Maggi has to deal with its negative perception of Maggi has being unhealthy in an increasingly health conscious market, a major threat in the current scenario. Thus Maggi h as come up with launch of Veg Atta noodles and Dal Atta noodles with the promise of good nutritional value. CUP O MAGGI The main objective of Cup O Maggi is convenience without compromising on taste. Nissins Cup Noodles is a huge hit with the consumers liking the concept of noodles served in a cup and the extra convenience of not dealing with cleaning plates and the lesser time required for preparation. Cup O Maggi is targeted towards a segment that value time and convenience as well as getting increasingly health conscious. So Cup O Maggi with added nutrition and wholesome components will position itself as a healthy and convenient food option that can be had anywhere, anytime. The crux of positioning will be Healthy snack anywhere, anytime.

MARKETING MIX:
PRODUCTS: 1. Masala: This is the original and most widely liked flavour of Maggi and hence has been brought out in 6 different packaging sizes, the maximum in any variant 2. Chicken 3. Curry 4. Tomato 5. Vegetable atta noodles: Launched with Taste bhi health bhi focus 6. Vegetable Dal atta noodles 7. Hungrooz The instant noodles segment of Maggi is the market leader in its segment. Available in many flavours, the masala flavour is the hot favourite by a huge margin followed by Maggi Veg atta and tomato flavour. New Product: Maggi has recently launched Hungrooz and it has no product to challenge by any other competitor. PRICE: Pricing strategy is based on the objective of Maximising market Share. Maggi 2 Minute Noodles Masala Pack Size(gms) 50 100 200 400 600 800 100 100 100 400 450 100 Price(Rs.) 5 10 20 38 54 72 10 10 13 50 60 10

Curry Tomato Veg. Atta Noodles Hungroooz Chicken

CUP-O-MAGGI Masala Chicken

PACK SIZE 80 80

PRICE 20 20
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PLACE: Maggi Noodles is being sold through grocers, convenience stores, supermarkets and miscellaneous channels. Mostly Indian still prefers to buy from kirana stores. Because of rising culture of malls there is a slight increase in distribution through supermarkets/hypermarkets. Maggi: Distribution Network Maggi Factory - Factory warehouse - Agent Distributors Wholesalers Direct Retailers End Consumers PROMOTION: Events and Experiences: Holding the Maggi and wherein sharing the story of how customer consumes Maggi and Winning entries story will published on the packets of maggi. Celebrity endorsement: Maggi has associated itself with celebrities like Bollywood actor Amitabh Bachchan recently. In the advertisement Amitabh bachchan is highlighting on children as well as on youngsters. Television Advertisement: In the advertisement family is enjoying Maggi different flavours and also focus on health aspect. Communicate the new improved easy to use packaging of Noodles. PACKAGING: Maggi noodles packets to be flimsy which require to be torn apart carefully so as to not spill the contents. Another issue is with the multi brick packets. Once opened they cannot be stored as it is and the contents have to be transferred to another container. Increase the thickness of the plastic sheets used in the Maggi Noodles packets to give more strength to the packet and allow easy & safe opening of the pack. To provide a Zip-Seal facility along with the existing sealing to allow the packets to be stored easily.

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5.FUNCTIONAL PLAN:
Break even analysis of a 100 tonne capacity plant of Maggi 2 minute masala noodles. In this we will look for the different cost involved in the production of Maggi noodles and then comparing it with the total sales to find out the minimum efficiency at which the plant should operate in order to have a neither loss or a profit relationship. Fixed Cost: This is the cost which is independently of the quantity of the product produced e.g. Land & building cost, Plant & machinery cost etc. Variable Cost: This is the cost that varies with per unit of product produced e.g. raw material cost, Packaging cost etc. Fixed Cost: Land & Building cost: Particulars Land Building Area(sq. mtrs) 200 100 TOTAL Cost(Rs.) 100000 200000 300000

Plant & Machinery Cost: Particulars Machine Packing and Sealing Machine Weighing Scale Qty. 1 1 1 TOTAL Price(Rs.) 100000 50000 10000 160000

Variable Cost: Man power Cost: Particulars Operators Helpers Skill Worker Semi skill Worker Salesman Numbers. 2 2 2 2 2 Monthly Salary 4000 2000 3000 2000 2000 Total Total Salary 8000 4000 6000 4000 4000 26000

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Raw Material Cost: Product Raw material Packing material Qty. 100 100 Price/Ton 70000 20000/ton of finished goods TOTAL Value 7000000 2000000 9000000

Other Expense: It will be almost 25% of Sales value. Fixed Cost Land & building Plant & machinery Total Fixed Cost Variable Cost Manpower Cost Raw and packing material Other expense In Rs. 300000 160000 460000 Per Tonne of production 26000 90000 @ 25% of sales

Break Even Analysis: Let total production be X tonnes. Since the 80 gm pack of Maggi is available for Rs. 20i.e. Rs. 250/kg so lets say that Maggi noodle is supplied to the market agent at Rs. 180/kg So for no profit no loss equation is 460000 + (116000*X) + (25/100)*X*180*1000 = (180*X*1000) X= 24.21 tonnes Contingency Plan: Maggi will look forward for satisfying the needs of customer by keeping sufficient inventory. Maggi will keep watch on competitors strategy of launching new product, pricing and new entries in the market and their pricing strategy.

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