Repositioning Maggi-Thalia Amor Imperial
Repositioning Maggi-Thalia Amor Imperial
Repositioning Maggi-Thalia Amor Imperial
Bayambang Campus
Bayambang, Pangasinan
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
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.