Maggi Swot analysis – SWOT of Maggi

From the house of Nestle, Maggi is one of the most known brands and the clear leader in the packaged food segment. The tagline “2 minutes noodles” is true to date. This is because people love the taste of Maggi. And at the same point, the distribution of the product is so far and wide that there have been stories written on “Meri Maggi”.

Moreover, the growing popularity of Maggi has spawned many related products as well, leading to the rise of a complete umbrella brand in the name of Maggi. Such a company is bound to have more strengths then weaknesses. So without further ado, let us delve in the SWOT analysis of Maggi. 

Strengths in the SWOT analysis of Maggi

1. With the presence in different product categories under the umbrella brand of Maggi with large SKU’s (Stock keeping unit).Maggi have edge over its competitors.
2. 1^st Mover Advantage: Maggi has established itself a pioneer in changing the eating habits & acceptance of Noodles as easy meal. Although now the market is full of local & national players in different product categories but still Maggi Holds market leader place .
3. High Customer Pull: With its distinguished promotion strategies & branding hence creating strong customer connects had helped Maggi to have High TOMA score.
4. Distribution Channel: Robust & well established distribution channel of the parent company (NESTLE) is helping in making the product available in the Market.
5. Popularization of Maggi in Restaurants & Road side stall, Canteens is contributing to its success.
6. With rich history and financially stable parent company is on the growing path.

Weaknesses in the SWOT analysis of Maggi

1. ­­Risk of Over Dependence: Company is playing hard on the risk of over dependability on Maggi Noodles, as 57% (2014) of the revenue of the brand Maggi comes from Noodles knowing the fact that their market share has been decreased significantly (in 2012 “84%”  to 63% in 2014).Although with more & more competitors the market size is still on the expansion mode.
2. Ill effects of Maggi: Awareness about ill effects of Maggi is gaining momentum with more & more educated class becoming more health conscious.

Opportunities in the SWOT analysis of Maggi

1. Brand Extension: Maggi can expand its product categories by venturing out in corn flakes ,Chips & Pickles( Although it failed in 2003 but now with presence of local & national players in this product category ,company can reap the benefits).
2. Although it’s been used majorly by the educated class in order to save their time what if the long potential rural markets can also be penetrated with the innovative strategies pertaining to consumers engagement with the brand.
3. Also Company can target the Restaurants chains by offering some customized or special offerings to make it more short of part of the daily life of the consumers.

Threats in the SWOT analysis of Maggi

1. Competition: Tough competition from the local & national player is the area of concern for the co. .
2. Negative word of mouth: Propagation of ill effects of Maggi noodles through online & Social Media possess threats to the existence of Maggi. As deterioration in perceived value of the Maggi brand due to its Noodles product category can affect the brand as a whole.
3. Commoditized name: For majority of population the name Maggi is being commoditized for Noodles just like Coalgate,  Surf etc.

Overall, here is the SWOT analysis presented in a graphical format