Repositioning Maggi-Thalia Amor Imperial

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Pangasinan State University

Bayambang Campus
Bayambang, Pangasinan

Name: THALIA AMOR M. IMPERIAL


Course, Year and Sec: BSBA II-1

REPOSITIONING MAGGI
Nestlé India Ltd. (NIL), the Indian subsidiary of the global FMCG major, Nestlé SA, introduced
the Maggi brand in India in 1982, with its launch of Maggi 2 Minute Noodles, an instant noodles
product. With the launch of Maggi noodles, NIL created an entirely new food category – instant
noodles – in the Indian packaged food market. During the 1990s, the sales of Maggi noodles
declined, and this was attributed partly to the growing popularity of Top Ramen, another instant
noodles product. In order to improve sales and attract more consumers, NIL changed the formulation
of Maggi noodles in 1997. However, this proved to be a mistake, as consumers did not like the taste
of the new noodles. In March 1999, NIL reintroduced the old formulation of the noodles, after which
the sales revived. Over the years, NIL also introduced several other products like soups and cooking
aids under the Maggi brand. However, these products were not as successful as the instant noodles.
In the early 2000s, Maggi was the leader in the branded instant noodles segment, and the company
faced little serious competition in this segment. In the early 2000s, NIL started introducing new
‘healthy’ products in accordance with the Nestlé Group’s global strategy to transform itself into a
health and wellness company. NIL also adopted the same strategy for the Maggi brand with the
launch of the Maggi Vegetable Atta Noodles (Vegetable Atta Noodles), a ‘healthy’ instant noodles
product made of whole wheat flour and vegetables (instead of refined flour), in 2005. The Dal Atta
Noodles were another variant of Maggi’s healthy instant noodle. Because of its first-mover advantage,
NIL successfully managed to retain its leadership.

Questions

1. Analyze three benefits that NIL derived by repositioning Maggi.

The three benefits that NIL derived by repositioning Maggi are the following:
a. Through repositioning Maggi, NIL was able to introduced several new other products that
was taken as their first-mover advantage.
b. NIL came up to introduce healthy products for transforming itself into a health and wellness
company.
c. NIL adopted the same strategy for the Maggi brand with the launch of the Maggi Vegetable
Atta Noodles (Vegetable Atta Noodles), a healthy instant noodles product.

2. What do you learn from the case above


Repositioning products to new markets or new users will be needed by the company to exert a
lot of effort, cost, and take risk. Through this, the company will implement its new develop product to
the markets with an improve sales and must be attracted to consumers. As a future marketer, I
learned that even if your company is a top brand, it doesn’t mean that your brand is always on the
consideration set of the consumers especially if there’s a newly introduced brand in the market
because that could greatly affect on the sales of your brand like what happened on the Nestlé India
Ltd. (NIL), the Indian subsidiary of the global FMCG major, Nestlé SA, when they launch of Maggi 2
Minute Noodles, an instant noodles product but was declined due to growing popularity of Top
Ramen, another instant noodles product. Instead, NIL gives its best to reposition Maggi by sourcing
and developing until that’s the time they develop a healthy instant noodle that result to their rising in
the market again so they successfully managed and retain their leadership. Above all, Marketers
should continue to innovate more their products or brand by assessing what is new trend in the
market that most of the consumers buy so that your product or brand will retain its growth and always
on the full demand by the consumers in the market.

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