SWOT ANALYSIS

SWOT analysis of the brand maggi clearly indicates the strength that it holds in the Indian
Market share regarding instant noodles. The brand is known to be a leader in its segment with
very strong customer loyalty. The brand was very much successful in reaching out to
customers within all age groups making it one of the easily available instant noodles across
the country, although intensive distribution was seen in the urban parts. One of the major
threats of the brand encounters is that Maggi has made several attempt to revamp itself as a
‘Healthy Product” but till date its perseverance towards the tag line is very much from the
side of customers.

Strengths
 Maggi as a brand has a very strong brand recall among customers
 Market leader with 60% market share in India regarding instant noodles in 2017
 Maggi shares an emotional connection with most of its users and thus has a strong
brand loyal consumer base
 Strong and wide distribution channels of the parent company, Nestle across India.
 Maggi is designed and innovated in such a way to cater the tastes of Indian consumers
with flavor like Indian Masala

Weaknesses
 One of the main weakness is that Maggi is tagged as a product having no health value
 Maggi has tried to bring in innovation to its range of noodles but has failed overtime.
The introduction of Maggi Atta Dal noodles is a strong indicator to its failure in
innovation later on
 Although Maggi has an excellent distribution channel across India, lack of penetration
in rural market is one concern

Opportunities
 The instant noodles segment in India is projected to grow at a very high rate valued at
1438.04 million1 in 2017 is also expected to register a CAGR of 5.6% during the
period of 2018-2023.
 High brand awareness among Indian people is a big opportunity for Maggie to acquire
loyal customers.
 Rapid economic growth and rising disposable makes a strong case for a premium
brand like Maggi among the instant noodles category.
 The upward trend of convenient and fast food consumption paves way for greater
demand. The Demand for Chinese foods has also increased country wide.
 Big market opportunities in a country like India which has more than 50% of its
population categorized as “Youths”

1
https://www.mordorintelligence.com/industry-reports/india-instant-noodles-market
 Threats
 The competition among other brands that are offering similar products are
increasing. Established competitors in the other market segments are foraying into
the noodle segment realizing the potential growth and profitability.
(Example- Introduction of Yippie noodles by ITC which is a well knows player in
other business markets.
 Price war with competitors as most of the instant noodle brands offers their
product at the same price or lower prices when compared to Maggie. (Instant
noodles brand like Maggie, Top Ramen, Ching’s and Yippie offers 60g of noodles
for a price of rupees 10)
 Maggie Ban in 2016 paved way for a negative brand image throughout its users.
Even though the issue was dealt with later on, there are chances that the brand
image is still not positive among certain market groups
 Customers are getting more conscious about health due to the emerging issues of
modern lifestyle diseases. Therefore the company must portray their brand as a
healthy product in order to survive in the market.

Marketing Mix of Maggi

Maggi is one of the most loved and preferred brand by customers in India. The combination
of factors that are controlled by Maggi to influence customers and for its growth in the
market place can be analyzed by taking its four P’s(Price, Place, Product, Promotion) into
consideration.

 Product in the marketing mix of Maggi

Maggi has introduced numerous products in the market place understanding the needs
of the customers. The brand came into existence by introducing instant noodles into
the market and slowly developed a loyal customer base throughout the country.

 Maggi 2 Minute Noodles- The flagship product in the Maggi umbrella brand, this
product is available in 2 flavors that are Chicken, Masala
 Hot heads Noodles- Consisting of 4 different flavours(peri-peri, barbeque, chilli chicken,
green chilli)
 Maggi Vegetable Multigrainz Noodles is a product that has Fiber, Calcium, protein and
added vegetables.
 Maggi Vegetable Atta Noodles is made from wheat flour that has fiber content and added
vegetables.
 Maggi Cuppa Mania is available in an easy cup format with two variants Chilly Chow
Yo and Masala Yo
 Maggi Oats Noodles is an innovative, healthy and delicious dish that is made from
Wholegrain Oats.
  Place in the marketing mix of Maggi

Maggi follows the distribution channel that is formulated by its parent company, Nestle.
Nestle follows a distribution channel starting from the factory to its factory warehouse
to Retailers and to Customers. They believe that a chain system is helpful in proper
distribution of the product.2 The key ingredient of the Maggi’s marketing mix is its
wide an efficient distribution channels. To have a successful product and also to ensure
that the product reaches the nooks and corners is surely an achievement.

 Nestle- The Company has decentralized the process of manufacturing where every plant
is responsible for its own production. It follows a twofold path for distribution. In the
first, the product is available to every local store and the second where the stock is
available for every malls and shopping centers.
 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.

 Price in the marketing mix of Maggi

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.
In a developing country like India, there are situations of inflations and thus the price of the
commodities increases. Maggi has used a very tactical approach towards the scenario. Rather
than increasing the prices , they smartly decreased the certain amount of grams in their packets
in order to compensate the rise in prices. Nestle as a whole tries to capture the market share
with an aim of maximum quality for the best minimum price.
Price range starts from 5 rs for the 35 grams pack in order to cater the low income session and
also to people who prefers to eat less.
 Rupees 5 – 35gms Masala noodles packet.
 Rupees 12 – 70gms Masala noodles packet
 Rupees 45 – 280gms Masala noodles packet
 Rupees 78 – 300gms Veg Atta noodles packet
 Rupees 15 – 70gms Chicken flavoured noodles packet
 Rupees 60 – 280gms Chicken flavoured noodles packet
 Rupees 45 – Cuppa mania cup noodles series
 Rupees 95 – 300gms Oats noodles
 Rupees 24 – 75gms Oats noodles
The above facts clearly reflects that maggi as a brand is implementing pricing strategies to cater
people from lower income levels to upper sections.

2
https://www.marketing91.com/marketing-mix-of-maggi/
 Promotion in the marketing mix of Maggi
When the parent company Nestle decided to launch Maggi in India, their main target
and most of their promotional activities were guided towards females and kids. Toys
and small utensils were given away with it as a gift as a part of the promotional
strategies. This made the brand very much successful and made it an instant
household name. Maggi had an advertising strategy of advertising between the main
highlighted programs in the television and also to different channels viewed by kids.
Its main tagline “ 2 minute noodles” is known as one of the smartest and catchiest
taglines of the advertisement industry which is still very much famous among the
customers. Maggi has also offered many more offers and schemes over the yearsto
attract its consumers like Fun book, free maggi products samples, scratch and win
coupons, discounts and money back offer.
Maggi featured Madhuri Dixit for its Oats noodles trying to spread a healthy image
among its customers. She can be also seen commenting the product to the customers.
Bollywood star Amitabh Bhachan can also been seen in early Maggi Ads.
Maggi has been very much depended on Advertisements and commercials but has
also paved way for its success. They advertise heavily when a new prouct is launched
trying to reach out maximum number of customers.

Current Target Market

In the autumn of 2015, in its 103year in the country, Maggi faced a big issue
regarding