Marketing Mix : product

PRODUCT :

The above caption in the image speaks volumes about Maggi. It shows the authority which Maggi has on the India market.

Maggi is an international brand of instant soups, stocks, bouillon cubes, ketchups, sauces, seasonings and instant noodles. Owned by Nestle since 1947, the original company was founded in Switzerland in 1872 by Julius Maggi.

In India,  Maggi instant noodles are very popular.

MAGGI 2-MINUTE Noodles is the most-loved meal across all age groups and defines the Instant Noodles category in India by being a part of our way of life. It has been bringing people together and is the favorite of millions; living in our hearts it has become intertwined in some of people’s most memorable experiences.

MAGGI 2-Minute Noodles brings to you 10% RDA of Protein and 20% RDA of Calcium in each serve (75g). With a reduction of over 27% salt per serve, less than 0.2% Trans Fats and no added MSG’s MAGGI Noodles has focused on providing you a healthier meal, without compromising on the great taste you love.

Introducing the New MAGGI Masala Dumdaar Noodles infused with a spicier flavor, added iron, calcium and protein making it healthier and tastier. Delivering on the promise of “Taste Bhi Health Bhi” each serve (76g) provides 24% RDA of Iron, 10% RDA of Protein and 20% RDA of Calcium giving you a truly Dumdaar taste.

Product Mix refers to the total number of product lines that a company offers to its customers. The same depicted in the diagram below :

Marketing Mix Elements

MARKETING MIX ELEMENTS :

As we know that in Marketing Mix there are 4 main p’s namely Product, Place, Price and Promotion.

The marketing mix of Nestle Maggi Noodles is:

• Product- Maggi has come up with various products according to the needs of the consumers. Some of them became very popular and some of them were not failure.

MAGGI 2-MINUTE Noodles is one of the largest & most loved snack food brands that defines the instant noodles category in India.

MAGGI Vegetable Multigrainz Noodles is a products which is a source of Protein, Calcium and Fibre, and has added vegetables.

MAGGI Vegetable Atta Noodles is healthy because it is made of wheat flour and has more real vegetables and is packed with the power of fibres.

MAGGI Cuppa Mania is a combination of all the above! In an easy to carry on-the-go Cup format, MAGGI Cuppa Mania comes in two variants – Masala Yo! and Chilly Chow Yo.

 

• Promotion: Over the years, Maggi has become an integral part of India Household along the likes of Pepsi, Coke etc. Television has played huge role in the success of Maggi.

• Place: Nestle Maggi noodles is famous not only in urban areas but also in rural areas. It is available in most kirana stores to retail outlets like Big Bazaar, Spencer in malls.

• Price: Till date there are 12 variants of Maggi noodles. Nestle has done real good job when it comes to pricing. The noodles are available from just INR 10 to INR INR 85. This shows the company really intends to win over all kinds of customers.

Product life cycle

PRODUCT LIFE CYCLE :

Product Life Cycle is used to map the life of a product. There are four stages in the life of a product. These four stages are Introduction Stage, Growth Stage, Maturity Stage and Decline Stage. The following graph illustrates the four stages of the Product life cycle:

 

1. Introduction Stage: The introduction stage is the most important stage in the Product Life Cycle. In this stage the product is initially promoted. Maggi’s Introduction Stage dates back to the 1980’s when it had entered the Indian market. The product was launched keeping in mind the working women and children. Maggi was a pioneer in the instant noodles market.

2. Growth Stage: The product starts to grow in the Growth stage. In this stage large amount of money is spent on advertisement. Maggi entered into its Growth Stage in the early half of the 1990’s where a huge amount of money was spent by Nestle to make it a household name. Maggi was accepted as a ready to eat food. There was a drastic increase in sales and profit too began to rise.

3. Maturity Stage: The third stage in the Product Life Cycle is the Maturity Stage. After the completion of the Introduction and Growth Stage a product spends a great deal of time in the Maturity Stage. During the latter half of the 1990’s maggi faced tough competition from Top Ramen. Large promotional offers were made and many new players also entered the market. Maggi currently is in its Maturity Stage.

4. Decline Stage: Decline Stage is the stage in which sales of the product begins to fall. Maggi has not entered its Decline Stage. It continues to introduce new varieties and product lines.

The other two cycles are Brand Life Cycle and Industry Life Cycle :

Maggi as a brand is on an ever high and has still not seen decline as Maggi comes up with innovations and variance and introduces its loyal customers to something new. Thus maturity and stability of the brand is maintained.

Nestle as an Industry is also doing great for years and maggi as a component of its varied array of products,as mentioned above

COMPETITION :

Why is competition seen as beneficial for consumers and the economy as a whole?

Competition is important because it is a mechanism for driving out inefficient producers. Competition forces producers to lower prices, or improve their product to attract consumers. When producers compete, they look for ways to make things more cheaply, so that they can lower their prices even further.

What are the potential gains from increased market competition?

• Lower prices for consumers
• A greater discipline on producers/suppliers to keep their costs down
• Improvements in technology – with positive effects on production methods and costs
• A greater variety of products (giving more choice)
• A faster pace of invention and innovation
• Improvements to the quality of service for consumers
• Better information for consumers allowing people to make more informed choices

Lack of competition or absence of it will increase prices as the product or service is or nearly is a monopoly. With competition, the low cost producer will have the advantage (price) and the consumer will benefit.

 

The fight for the lucrative instant noodle market in India is getting more tangled.

The latest to join the battle along the likes of Top Ramen by Nissin and Foodles by Horlicks is Yippee Noodles by Sunfeast ITC. Even private label brands such as Tasty Treat by Future Group (Big Bazaar retail chain) have been launched in the market.

The Indian noodles market is worth INR 1,500 crore and is seen growing at 15 to 20 per cent annually.  Nestle India Ltd remained the dominant player in noodles at the end of the review period with a 60% share of retail value sales in 2013. Its Maggi brand was the most entrenched instant noodle brand in India in 2013. The brand has performed very well due to the wide distribution network and aggressive marketing of Nestle India. The brand enjoys a high level of loyalty as Maggi was the first instant noodle brand to be introduced in India. Nestle India has also been proactive in launching new variants, such as Maggi Dumdaar noodles and Maggi Curry Noodles.

Consumer Buying Decision

CUSTOMER BUYING DECISION :

What is it that makes people (children and adults alike) consume Maggi and keep coming back for more! Convenience is a big reason but that alone cannot be the driving factor. There are a lot of other things that Maggi has to offer.

Maggi has a large market share and wholesalers and the retailers’ stock it because it is a moving product and they sell like hot cakes.

Maggi noodles is positioned as a low priced (Each packet INR 10/- and chhotu pack is worth INR 5), easy to cook, yummy snack and attracts a large customer base.

A customer’s psychological faculties also play a big role in making the buying decision. A brand recall value or rather an advertisement’s recall value has to be strong. When it comes to this, Maggi noodles beats its competitors. It has a coveted space in the minds of the customers, so much so that other instant noodles are often referred to as Maggi.

Generally the customer goes through 5 stages while making the buying decision for any product or service:

1) Problem recognition, 2) Information Search, 3) Evaluation of Alternatives, 4) Purchase Decision 5) Post purchase Behaviour.