CHAPTER-III
CONCEPTUAL BACKGROUND OF THE STUDY Nestle has its presence in India for around nine decades, making it one of the oldest company in India. Nestle India is a subsidiary of Nestle South Africa of Switzerland. The company has its headquarters at Gurgaon near Delhi and has seven factories spread all over India. It started its journey in India in 1912 by entering into the dairy business.
Nestle launched Maggi noodle with its captivating two-minute tagline way back in a982 when instant food was not popular in India. Even after 31 years, it enjoys approx. 75 percent of the market share. Three more products on the same introduced after that namely Top Ramen, yippee, foodle and knorr soupy noodle. Maggi is one of the most loved and eaten …show more content…
3. Opportunities in the SWOT analysis of Maggi
Brand Extension: Maggi can expand its product categories by venturing out in corn flakes, chips and pickles (Although it failed in 2003 but now with presence of local and national players in this product category, company can reap the benefits).
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.
Increasing number of working youth product has been acceptable in the youth category.
4. Threats in the SWOT analysis of Maggi
Competition: Tough competition from the local and national player is the area of concern for the company. Price war with competitor’s strong presence of regional competitors. Consumers don’t perceive it as a healthy product.
Negative word of mouth: propagation of ill effects of Maggi noodle through online and social media possesses threats to the existence of Maggi. As deterioration in perceived value of the Maggi brand due to its noodle product category can affect the brand as a
CONCEPTUAL BACKGROUND OF THE STUDY Nestle has its presence in India for around nine decades, making it one of the oldest company in India. Nestle India is a subsidiary of Nestle South Africa of Switzerland. The company has its headquarters at Gurgaon near Delhi and has seven factories spread all over India. It started its journey in India in 1912 by entering into the dairy business.
Nestle launched Maggi noodle with its captivating two-minute tagline way back in a982 when instant food was not popular in India. Even after 31 years, it enjoys approx. 75 percent of the market share. Three more products on the same introduced after that namely Top Ramen, yippee, foodle and knorr soupy noodle. Maggi is one of the most loved and eaten …show more content…
3. Opportunities in the SWOT analysis of Maggi
Brand Extension: Maggi can expand its product categories by venturing out in corn flakes, chips and pickles (Although it failed in 2003 but now with presence of local and national players in this product category, company can reap the benefits).
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.
Increasing number of working youth product has been acceptable in the youth category.
4. Threats in the SWOT analysis of Maggi
Competition: Tough competition from the local and national player is the area of concern for the company. Price war with competitor’s strong presence of regional competitors. Consumers don’t perceive it as a healthy product.
Negative word of mouth: propagation of ill effects of Maggi noodle through online and social media possesses threats to the existence of Maggi. As deterioration in perceived value of the Maggi brand due to its noodle product category can affect the brand as a