Maggi is one of the most loved and eaten food products in India. Recently, with the introduction of Aata Maggi and Oats Maggi, it is one of the healthier fast-food preferences of consumers. This brand is a subsidiary company of the international brand “Nestle”.
Maggi was Founded in 1884, by Julius Maggi. Julius Maggi launched this product for working women who did not have the time for cooking. Nestle acquired the Maggi brand in 1947, The company has its headquarters in Cham, Switzerland. It was originally a powdered soup of bean and pea and besides being nutritious was very easy to prepare. It was appreciated to such an extent that even after one hundred and thirty years it is able to hold its own in such a competitive market. Refer to this link to know the History of Maggi.
Some of its competitors are
However, none of the competitors have been able to reach the success levels which Maggi has reached.
- Type: Food and beverage company
- Industry: Consumer packaged goods
- Founded: 1886
- Founders: Julius Maggi
- Headquarters: Vevey, Switzerland
- Area served: Worldwide
- Current CEO: Mark Schneider
- Number of employees: 339,000
- Major products: Instant noodles, soups, sauces, bouillons, seasonings, and culinary ingredients
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Nestle Maggi Marketing Mix
One of the many reasons Maggi has been successful is because of the Maggi Marketing mix. The 4ps (Product, price, place, promotion) of Maggi are very strong. The product is the strongest point of Maggi as the product is so tasty that you will feel like having maggi right after reading this article. Nestle has also kept the right cost-based pricing of Maggi. Whether you are a marketing professional or someone interested in the brand Maggi, you will love this 4Ps of maggi. In fact, let us go in detail through the Marketing mix of Maggi.
Product in the Marketing mix of Maggi
Maggi is known for its instant noodles and quick and easy-to-prepare meals. Maggi has introduced numerous products in the market according to the needs and tastes of its consumers. The brand has been known for its noodles, wuze, bouillon cubes, instant soups, stocks, sauces, ketchups and seasonings. If you want, here is a reference to all Products of Maggi including the latest Maggi recipes which Nestle Maggi itself publishes on its website. The products that have surpassed the expectations of the people and have become a hit in the minds of the consumer’s are-
- Maggi 2 Minute Noodles- The flagship product in the Maggi umbrella brand, this product is available in five flavors that are Tricky Tomato, Chicken, Masala, Romantic Capsica and Thrillian Curry.
- 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.
- Maggi Sauces
- Maggi Pichkoo
- Maggi Pazzta
- Maggi Healthy Soups
- Maggi Magic Cubes
- Maggi Coconut Milk Powder
- Maggi Masala -ae- Magic
- Maggi Bhuna Masala
- Maggi Pasta and Pizza Sauce
Some of the key points of Maggi Products are
- Differentiation: Maggi has well-differentiated its products and also caters to different tastes and even focuses on healthy products.
- Innovation: Maggi has brought new products in the market like Atta Noodles and Oats noodles which are healthier options and adapt to changing consumer tastes.
- Customer Loyalty: Customers are very loyal to Maggi. In fact, i myself prefer Maggi as the instant noodles of choice.
- Alternative options: If you don’t like Maggi noodles, maggi also has options of Pasta and Sauces. Thus, there are a lot of products of maggi that you can consume.
Place in the Marketing mix of Maggi
Maggi has followed the distribution channel of Nestle to Distributor to Retailer to Consumer, as a chain system is helpful in proper distribution of the product.
- 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 mall and shopping center.
- Distributors – The Company offers its distributors a clear-cut margin of 6%. In this scheme, the distributor makes an 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.
The key ingredient in the Marketing mix of Maggi has been its distribution. It is one thing to have a successful product in your hand, it is a completely different ball game to ensure time and time again that this top-of-the-line product reaches the nooks and corners of the world. Even if you go in the Himalayas, you will find Maggi selling there at select places. Isn’t that something!! This single factor – distribution, has been the backbone for the success of the product.
Price in the Marketing mix of Maggi
Maggi has a cost-based pricing strategy wherein it adds its margins on top of cost and sells the product. Another pricing strategy which Maggi uses is penetration pricing strategy because it knows it has to penetrate the market the world over. There are many indirect competitors to Maggi as well.
Maggi has a very clear-cut policy regarding its prices. From its initial years it has kept low pricing policy because, its consumers mostly belong to the average middle class group. To make the product affordable they had to tone down their prices but the volumes the product generates has helped the company in maintaining a healthy profit. Therefore, the prices have always been kept normal without any dramatic changes. In order to keep with the changing economic times.
Maggi has reduced the quantity, instead of the prices. Along with this, to cater to the middle and low income class customers, Maggi offers different sizes of packets at various prices so that the customer can buy as per budget.
Promotions in the Marketing mix of Maggi
When the parent company Nestle decided to launch Maggi in India, its promotional activities included creating awareness amongst the females and kids. Toys and utensils were offered as gifts along with packets of Noodles. This turned out to be a huge booster for the brand and made it an instant household name. Maggi advertised on kid’s channels and between main programs in the television. Its tagline “2 minute noodles” is known to be the smartest tagline in the advertising industry and is still very famous amongst the consumers. Till date, no one has been able to cook a Maggi in 2 minutes J but still, people love the product for the quick way they can get an excellent snack. Maggi has also announced many offers and schemes over the years to attract its consumers like Fun books, free Maggi products, scratch and win coupons, discounts and money back offer.
In an exciting commercial for Maggi Oats Noodles, a consumer can see the famous Bollywood actors commending the product to the viewers. The convincing advertisement has proved to be a hit with the audiences taking the company to new heights. In all its campaigns, since the year 1982, the product has been advertised as “2 minute noodles”. The famous actor Amitabh Bachchan is also seen in the promotional activities of Maggi.
You can see Maggi advertising heavily when it brings a new product in the market. But time to time, it also advertises for product recall. For example, the Maggi masala for ready made food is advertised time to time to keep the product in the minds of the consumer. On the other hand, the 2 minute noodles are advertised heavily when there is a new variant such as Oats noodles or Aata noodles.
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