final maggi p.l.c

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PRODUCTION AND MATERIALS

MANAGEMENT

1. SANKET NAIR

2. REUBEN GEORGE

3. SIDHANT PAKHARE

4. ISHAN JOSHI

5. MAAZ AGA

6. SHOYEB SHAIKH


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INTRODUCTION TO NESTLE

COMPANY

1. Founder- Henri Nestle.

2. Nestle was founded at - Vevey,

Switzerland in 1866.

3. Area served- Worldwide.

4. Type of industry- Food processing.

5. Basically the company started to

meet need of milk in world war-1.

6. Henri Nestle developed a milk based baby food and soon began

marketing, it was the first product of Nestle.


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PRODUCTS OF NESTLE PVT. LTD.

-Milk Products:*Nestle milk pack.

*Milk pack butter.

*Milk pack Desi ghee.

-Drinks:

*Milo.

*Nescafe.

*Nestle fresh and natural curd.

*Maggi pichkoo sauces.

*Jams.


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P.L.C GRAPH

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1866 1897 1900 1950


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COMPETITORS

Strong competition

- Cadbury(chocolates)

- Amul(milk & milk products)

- Knorr & Nissan(soups, ketchup, jams, etc)

- Bru(coffee)


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New entrance:No threats of new

entrant in the market.

Supplier:*Distributor

*Raw materialsupplier.

* Packaging

Buyers:*Customer mindset.

*Brand image.

Substitues:Pasta.

Fast food.Chowmeen.

Industrialrivalry:

CadburyKnorrAmul


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HURDLES FACED

Sales saw a decline in 90s

- formulation change from fired base to air dried base

Competition increased in Noodle segment

- Top Ramen Indo Nissan (Japanese Company)

New products launched in market butfailed

- Dal-atta noodles, sambhar flavour

Maggi launched some new products undertheir brand but these products were notsuccessful

- Soups, tastemakers, etc


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VITAL STATS (figures as of 2009)

Revenue - 15.68 billion

Operating Income - 18.04 billion

Total Assets - 106.2 billion

Total Equity - 54.92 billion


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HISTORY OF MAGGI

MAGGI owes its name to his founder Julius

Maggi(1864-1912)

Born in Frauenfeld, Switzerland, Julius took over a

hammer mill from his father in 1869.

The first industrially produced leguminous flour was

put on the Swiss market in 1884. When the

expected market breakthrough failed to occur,

Julius went back to the drawing board and created

MAGGI ready-to-use soups in 1886.

Julius Maggi died at the age of 66 following a strokebut his legacy continues to this day. The company

that Julius founded merged with Nestl in 1947 and

since then, Nestl has been the proud custodian of

this trusted brand.


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Introduction to MAGGI 2-

minute noodles

1. Owned by NESTLE INDIA LTD.

2. Launched in INDIA in 1982.

3. Popular in countries :

Australia.

India.

Malaysia.

Newzealand.

Singapore.4. It took Several years and lots of investment to establish its brand in

India, due to which now it enjoys around 90% of market share in itssegment.


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INTRODUCTION STAGE

- No competition.

- Frequent product modification.

- Limited distribution.

- High marketing and production cost.

- Nestle launched its maggi 1st in 1982 in Indian market.

- With launch of maggi Nestle created an entirely new food category i.e.(instant noodles)

- With its 1st mover advantage, Nestle successfully managed to retain itsleadership in instant noodles category.

FULL SCALE

LAUNCH OF NEWPRODUCTS


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MARKET PENETRATION

1. Promotional campaigns at schools.

2. Advertising strategies :-

Focusing on kids and youngsters.

3. New product innovation according to need of customers:-- Veg. Atta noodles.

- Dal Atta noodles.

- Cuppa mania.

4. Availability in different packages:-

- 50gms.

- 100gms.

- 300gms. i.e.(family pack)


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GROWTH STAGE

- Increasing rates of sales.

- Gradually price started reducing.

- In this stage development cost were recovered.

- 10 years back it enjoyed 50% of market share in its segment which

was valued at around 250 crores.

- 1990s new products came into competition which reduced maggis

sale, in order to improve product Nestle changed the formulation ofmaggi noodles which proved costly to them as consumer didnt accept

it.

- In March 1999, Nestle reintroduced old formulation of maggi, due to

which their sales revived

OFFERED IN

VARIOUS SIZES,AND FLAVOURS


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MATURITY STAGE

- In 2003, Hindustan lever ltd was set to take on Nestles best sellingmaggi noodles by launching a new category of liquid snacks under its

food brand, KNORR ANNAPURNA.

- Because of this fierce competition Nestle introduced a innovation

under maggi i.e. (cuppa mania).

- And this time they targeted almost everyage group.


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IODINE FORTIFICATION CENTRESON GLOBAL SCALE


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FAILURE CAUSES OF NEWLY

INTRODUCED VARIETIES

- Indian physce.

- Production cost high.

- Flase claim of superiority.

- Not purely veg.


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Pie chart MAGGIS sector in globaleconomy


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CURRENT SCENARIO OF MAGGI

-Leading branding brand in India as well as world.

-CURRENT SALES:

Approximately -90,000 boxes.

Rs. 4,79,49,000 in mumbai.

10,00,000 boxes.

55 crores in India.

- Due to which price is reasonable and competitive.


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Documents

final maggi p.l.c