SWOT
ANALYS
● Stands for Strengths, Weaknesses, Opportunities,
WHAT IS and Threats.
● Technique for assessing these four aspects of your
SWOT business.
● Strengths and weaknesses are internal to your
ANALYSIS? company—things that you have some control over
and can change.
Examples include who is on your team, your patents
and intellectual property, and your location.
● Opportunities and threats are external—things that
are going on outside your company, in the larger
market. A company can take advantage of
opportunities and protect against threats, but you
can’t change them.
Examples include competitors, prices of raw materials,
and customer shopping trends.
SWOT ANALYSIS OF MAGGI
Strengths Weaknesses
1. Market leader 1. Generic brand to noodles in India
2. Brand Loyalty 2. Low rural market presence contraints.
3. Distribution Channels 3. Uniform brand for all food categories. Highly dependent on
4. Innovative flavours for Indian taste buds one flavour.
5. Advertising Strategies.
Opportunities Threat
Growing packaged and canned food market in India by 15%. 1. Competitor with long history in product category.
2. High brand awareness of Indian consumers. 2. Less entry barriers in the market segment for product.
3. Unexpolited rural market. 3. Competitive pricing.
4. Increasing number of working youth. 4. Brand name is being commoditized
4 Ps of Marketing
PRODUCT:
Features, quality, branding, services, packaging,
warranties
PROMOTION:
Sales promotion, advertising, direct marketing, personal marketing
PLACE:
Channels, market coverage, assortment, location,
inventory
PRICE
Pricing strategies, allowances, discounts, payment
terms
PRICE
1. Considenring the price points in the market for
maggi, it should continue to position itself in the
snack
2. Affordable by all income groups.
3. Differentiated packaging
4. Low price point strategy.
5. Inflation effect on volume than price- Reduction of
100gm pack to 95gm, keeping the price Rs. 10 only.
6. Discounts.
PLACE
1. Wide distribution network.
2. Limited penetration in rural areas
3. The company has complex chain process
4. Easily available at the confectionery shops, retail
stores etc.
5. intensive and well spread distribution network.
PRODUCT
1. High quality
2. Available in various models and sizes.
3. Packing
4. Branding
5. It is a convinance good.
PROMOTION
1. Children cenrtic advertisements
2. Maggi associated with mainstream television
programmes and advertised heavily on kids
programme and channels.
3. Maggi has launched several campaigns.
4. Celebrity braning.
THE CRISIS
v The whole crisis began with a routine inspection
of Maggi samples done by a Food Safety and
Drug Administration officer of an Indian state Uttar
Pradesh, who collected samples of Maggi from a
store on March 10, 2014 for tests to determine
whether Nestle India was complying with its
stated claim that the product doesn’t contain any
monosodium glutamate (MSG), a taste enhancer.
v On June 5 Food Safety and Standards Authority
of India (FSSAI) had ordered a pan India ban on
the Nestle India's Maggi Noodle that these were
"Hazardous and Unsafe"
MAGGI INSTANT NOODLES CAME UNDER THE
SCANNER FOR TWO MAIN REASONS:-
● The first one was the violation of the regulations for
adding Lead and MSG into their product. As against
the maximum limit of 2.50 parts per million (ppm), the
amount of lead detected in the Maggi samples was
perilously high at 17.2 ppm.
● The second offence was mentioning "NO ADDED
MSG" on the packing, which is an act of mislabeling.
Also it launched "Maggi Oats masala noodles" without
meeting the appropriate norms of standardization.
Above the line marketing
Below the line marketing
Above the line marketing
Above the line marketing includes mass marketing strategies which
are largely untargeted and are focused on building the brand.
● Tailored to reach mass audience
● Great for building brand awareness
● Helps to connect with the audience
● Difficult to measure results from campaign
Below the line marketing
Below the line marketing includes direct marketing strategies
directed to specific target groups and focused on conversions.
● Tailored to reach specific audience
● Direct contact with customers
● Builds stronger relationships and brand trust
● Drives individual audiences
● Highly measurable, allowing better insight into ROI.
Above the line marketing strategy
● Maggi changed their advt strategy from 'fast to cook'
to “bas 2 minute mein Maggi”
● Created fun tv ads to launch new products.
● Broadcasted and advertised their products on radio.
Below the line marketing strategy
● Held Competitions like “Biggest Maggi Fan”
● Introduced Maggi newsletter for teenagers
every month.
● Distributed free samples in schools.
`
MAGGI INSTANT NOODLES CAME UNDER THE
SCANNER FOR TWO MAIN REASONS:-
● The first one was the violation of the regulations for
adding Lead and MSG into their product. As against
the maximum limit of 2.50 parts per million (ppm), the
amount of lead detected in the Maggi samples was
perilously high at 17.2 ppm.
● The second offence was mentioning "NO ADDED
MSG" on the packing, which is an act of mislabeling.
Also it launched "Maggi Oats masala noodles" without
meeting the appropriate norms of standardization.
TARGETING
CHILDREN & TEENAGERS:
Kids were targeted by maggi because
they were the one who were ready to
accept a tasty food. They know exactly WORKING WOMEN:
what they want and do not experiment Nestle promoted working women
too much with the flavour or colour. concept in India during 1980s. This
was
a wonderful strategy to promote their
own product. As housewives moved to
office, they earned more money but
OFFICE & COLLEGE STUDENTS lesser time. So the idea of instant
The company also targeted this noodles was spreading.
segment
of people who need refreshment time to
time and would take less time because
of
hectic schedule.
POSITIONING DIFFERENTIATION
Market positioning is the act of designing Points of difference are attributes or
the company’s offerings and image to benefit consumers strongly associate
occupy a distinctive pace in the minds of with brand.
the target market.
The Maggi brand has also differentiated
MAGGI has positioned itself in the its brand image from its competitors in
SNACKS category. Therefore, Maggi have terms of-
developed its brand image of instant Taste
food products with positioning Flavours
statements such as- Packaging- available in different sizes
“2 minutes’ noodles” and “easy to Variants
cook, good to eat” Ease of availability
