decision making - group 6a - final assignment

8/17/2019 Decision Making - Group 6A - Final Assignment

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Assignment: Decision Making

Date of Submission

07 November,2015

CEO Aseem Maheshwari

GroupNumber/Section

6A GroupMembers

Anirudh TodiHoang Nguyen Huong Ngoc(Hanna

!ar"hi# Nair Tanushree $aho"i

Brand selected: MAGG noodles! Nestle

"uick ntroduction :

Maggi was in"roduced "o "he %ndian mar#e" in 1&') %n %ndia, "he word *Maggi+ issynonymous wi"h -2 minu"e nood.es)/ ver "he ne" 25 years, "hey enoyed a &03share in "he ins"an" nood.e mar#e") %ndia+s 4roimi"y "o hina Ne4a., has madenood.es a 4ar" o "he urban %ndian die") The -2 minu"e nood.es/ can be ound

anywhere in %ndia even in "he remo"es" vi..age)Maggi re.ies on nos"a.gia "o #ee4 ahead o "he growing nood.e com4e"i"ion)However, recen".y Maggi nood.es has .anded i"se. in "roub.e a"er high 8uan"i"ies o .ead was ound in "he nood.es) This had resu."ed in "he ban o "he consum4"ion o Maggi nood.es or some "ime) This has dras"ica..y a9ec"ed "he sa.es, a dras"icreduc"ion o mar#e" share .oss o consumer "rus" in "he brand) $e"+s unders"andwha" wen" wrong wi"h "he brand Maggi using some essen"ia. "echni8ues)

/ #$OB%EM DEN&'CA&ON

A( S()(O(& Anal*sis of Maggi

:"reng"hs

• Mar#e" .eader in nood.es ca"egory wi"h

high brand .oya."y)• Avai.abi.i"y o varie"ies and ;avors)

• Memorab.e "ag.ines "ha" ma#e "heir

adver"ising s"ra"egy su4er hi")•


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44or"uni"ies

• Erowing "rends o convenience coo#ing)

• @o"en"ia. "o "a4 "he un"a44ed region o

rura. mar#e"s)• Fes4i"e having varie"ies "he com4any s"i..

has a 4o"en"ia. or increasing i"s o9eringchoice)

• hanging consumer 4reerence "owards o hinese and 8uic# "o ea" ood)

• The com4any can oray in"o o"her mar#e"s

o ood and beverage ca"egory because o s"rong brand name and "hus a brande"ension)

Threa"s

• @rice wars wi"h #ey com4e"i"ive

4.ayers)• Go.a"i.e cos" and im4ac"s o in;a"ion)

• hanging 4erce4"ion o consumers

"owards hea."hy ea"ing habi"s)• Tough com4e"i"ion rom .oca. 4.ayers

and increased com4e"i"ion such as To4 amen, !norr %ns"an" Nood.ese"c)))

B( + ),-s:

1) ,o. .as Maggi aected b* t0e lead crisis1Nes".I has been "hrough a "ough "ime, wi"nessing a drama"ic decrease in

Maggi brand+s revenue as we.. as mar#e" share in %ndia in "he 4as" ewmon"hs) %n a recen" re4or", Nes".I+s revenue coming rom Maggi dec.ined "o1&)J bi..ion ru4ees (K02 mi..ion in "he "hree mon"hs ended Lune 0,com4ared wi"h 2J)1& bi..ion in "he same 4eriod a year ear.ier) The com4any4os"ed a ne" .oss o 6JJ mi..ion ru4ees, com4ared wi"h a ne" 4roD" o 2)''bi..ion ru4ees a year ear.ier)

2( )0* 0as Maggi suered suc0 loss in sales1 Maggi nood.es was ound "o con"ain .ead and Monosodium E.u"ama"e (M:Ein ecess) cien" ood sae"y and 8ua.i"ycon"ro. 4rocess migh" be main.y res4onsib.e or "his issue)

7( )0* does not Nestl8 0a9e an ecient and stringent ;ualit* controlprocess1

Tha" cos"driven s"ra"egy migh" have .ed Nes".e "o "he decision o cu""ingdown cos", "hrough i"s raw ma"eria. su44.y se.ec"ion and im4rovemen" o "he8ua.i"y con"ro. 4rocess and "hereore, .eading "o 4u""ing i"s consumer+s a" ahea."h ris#)

+( )0* does Nestle 0a9e to cut do.n cost1


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Fue "o an increasing com4e"i"ion in "he .oca. ME mar#e", es4ecia..y inins"an" nood.e 4roduc" segmen", Nes".e Maggi had s"rived "o #ee4 4roduc"4rice reasonab.y and even more a44ea.ing "o consumers "o 4ro"ec" i"s mar#e"share)

C( 'is0 Bone Anal*sis:

D( < &0inking ,ats:

)0ite =nformation gat0ering> Maggi nood.es are 4ar" o "he Maggi ami.y,

Nes".I brand o ins"an" sou4s, s"oc#s, and nood.es) came in"o eis"ence in 1'75 in:wi"Cer.and, Maggi has a &03 share in %ndia , is synonymous wi"h -ins"an"/ nood.es,%n Lune 2015, i" was re4or"ed in %ndia "ha" "es"s had ound high amoun"s o .ead andM:E in Maggi nood.es, ::A% ordered coun"rywide wi"hdraw and reca.. or a.. &varian"s o Maggi %ns"an" Nood.es)

$ed =Emotions> a "rue chi.dhood buddy, -Maggi memories/, 4erec" 8uic#snac#be"ween mea.s, easy avai.abi.i"y, chi.dhood, .unch brea#s, ::T, ha44iness,convenience, easy "o coo#, even bache.ors can ma#e Maggi)

Black =Discernment> Fi>cu." "o regain "he "rus" o %ndian consumers, hea."hconscious consumers wi.. s"ay away, -No" us" "he brand, bu" "he com4any and i"scu."ure and e"hos wi.. be "es"ed)/, o"her hea."hier nood.es have ca4"ured "hemar#e", "he new Maggi may no" have "he same "as"e as "he o.d one and "hereoreno" se.., -"rus" once bro#en canno" be re4aired)/


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-ello. =Optimistic opportunities> we..recogniCed brand name, synonymouswi"h -ins"an"/ nood.es, brand .oya."y, no o"her nood.es have "he same #ind o emo"iona. connec" as Maggi does, habi"ua"ed "as"e buds, s"rong adver"isingcam4aign, good ne"wor# o @ , s"rong dis"ribu"ion channe.)

Green =Creati9it*> ? new innova"ive mar#e"ing cam4aign, a4o.ogiCe "o "he

consumers, "rans4arency in manuac"uring, regu.ar chec#s on Maggi nood.es)

Blue =Managing> ? The 4rob.em is wi"h brand 4erce4"ion "ha" i" is no .onger sae"o consume Maggi, "he no"ion "ha" a snac# "ha" mo"hers have been rou"ine.yeeding "heir #ids or "he .as" "hree decades is "ain"ed wi"h ecess .ead, has causeda maor shoc# in "he coun"ry)

E( MNDMA#:

( #$OB%EM SO%@NG

Ne. $ules of Business t0at could re9i9e t0e brand Maggi

> $ule of 3:Rule 1- Make a better product not a cheaper one.


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Maggi con"inuous.y has been "rying "o change i"s 4erce4"ion in "he mind o i"sconsumers and "rying "o be on "he "o4 o "he game by 4ersis"en" ocus on8ua.i"y) n i"s in"roduc"ion "he "arge" mar#e" was wor#ing women bu" .a"er on"hey rea.iCed "ha" "here rea. "arge" mar#e" is chi.dren and "hus "hey changed"heir 4osi"ioning as a hea."hy as" ood) Trying no" "o com4romise on 8ua.i"yand a.ways "rying "o im4rove Maggi has been "he reason why Maggie "oday isa amous househo.d brand)

Rule 2- Focus on revenues and not on cost.

The com4any has a very a9ordab.e 4roduc" 4ricing s"ar"ing rom %N 5P andmaimum being %N 1J0P and i" can e9ec"ive.y genera"es revenues bu" i" isa.so cos" e9ec"ive or "he consumers) onsumers in bo"h rura. and urbanareas Dnd Maggi very economica.)

Rule 3 – Stay focused in these 2 above-mentioned rules. ecause the rule 3

says! there is no rule 3.

2> Eliminating Consumers6 pain point: The concern abou" Maggi+s 4roduc"8ua.i"y has become "he 4ain 4oin" "ha" ma#es consumers "o s"o4 choosingMaggi) To bounce bac# and be sus"ainab.y successu. in "he mar#e", Nes".eshou.d s"rive "o e.imina"e "his 4ain 4oin" o consumers) Nes".e shou.d inves"more in "he im4rovemen" o "he 8ua.i"y con"ro. sys"em) A.so, "hey shou.dcareu..y se.ec" and screen "he raw ma"eria.s "o ensure 4roduc" 8ua.i"y andenhance cus"omers+ sa"isac"ion as we.. as "heir .oya."y) The com4any shou.dc.ear ou" "he doub"s in "he cus"omers+ mind "hrough socia. media o"hermedia channe.s)

3> Mindfulness: Maggi has been mindu. in i"s ac"ivi"ies and have been awareo "he environmen" 4revai.ing around i") Fue "o "his reason Maggies "arge"mar#e" has been "ransorming rom "ime "o "ime) %n order "o e4and "heirmar#e" share, we sugges" Maggi "o move on"o "arge"ing "he Qou"h in %ndia "ograb "heir a""en"ion and #ee4 "hem hoo#ed "o "heir 4roduc") Moreover, Nes".emus" be more mindu. by .iving in "he 4resen" being aware o "heirimmedia"e environmen") To #ee4 a wa"chu. eye on unnecessary rumors "ha"cou.d ur"her "arnish "he ace o "he brand)

7> Determinant benets:Maggi, mus" ca"er "o "heir cus"omer needs i)e) iden"iy "heir 4ain 4oin"s

o9er "hem a hea."hy 4roduc" "ha" "hey wan" "heir com4e"i"ors don+" have "oo9er) By doing "his "hey can win bac# "he .oya."y o "heir ormer consumers increase "he number o 4o"en"ia. consumers gradua..y win bac# "he mar#e"share "ha" "hey he.d)

+> #@O& Strateg*: &)S&: This reers "o changing s"ra"egy midway)


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ocusing on hea."hy ood) Thus Maggi has been cons"an".y changing "he wayi" o4era"es) Maggi has new and crea"ive ways o adver"ising such as as#inghousewives abou" "heir innova"ive reci4es and 4ub.ishing "hem) The recen"changes have "arnished "he image bu" Maggi is coming u4 wi"h a grea"comebac# s"ra"egy "o reins"a"e "heir 4osi"ion bac# in "he mar#e") To bui.d abe""er re4u"a"ion and 4aving 4a"h or a be""er u"ure Maggi (Nes".e shou.d beindu.ged in some socia. causes or environmen"a. causes) This s"ra"egy wou.dbring maimum amoun" o 4osi"ive review and coverage "o "he brand)

nno9ation: As Maggi+s ?:@ has been "a44ing "he sen"imen"s o "heircus"omers i)e) "hey re.y on nos"a.gia "o s"ay ahead in com4e"i"ion) Theconsumers s"i.. .ove Maggi) They are us" hesi"an" "o 4urchase "he same due"o "he recen" issues "ha" have risen) ncremental inno9ationR Nes".e shou.d inves" in F de4ar"men" "o

have more diversiDed 4roduc"s by in"roducing new ;avors "ha" ins4iredrom o"her coun"ries+ cuisine, e)g) La4anese+s ramen or Gie"namese+s @ho;avors, or adding new ingredien" rom organic 4roduc"s which is "es"iDedas good or hea."h)

&ransformati9e inno9ationR -Maggi AllinOne product/R Qour

"radi"iona. Maggi nood.es now come wi"h a sidedishR soup! mashed potato and bread sticks. The .aunch o "hese new 4roduc" combina"ion wi..sa"isy a.. consumer+s need or a hea."hy, sae and convenien" mea. "ha""hey have no" even "hough" "ha" "hey need i" beore)

> Competition from $umors:

%n order "o s"o4 "he rumors and win bac# cus"omers+ "rus", i" is sugges"ed"ha" Maggi shou.d run an in"ensive and aggressive communica"ion cam4aign,"arge"ing bo"h na"ionwide consumer)

- am4aign ideaR *Momm* lo9es Maggi! Momm* trusts Maggi+Maggi has .ong been 4osi"ioned i"se. as a convenien" 4roduc" or mo"hers,i" is now a good "ime or Maggi "o reem4hasiCe "ha" Maggi nood.es ares"i.. a bes" choice or "hem) Mo"her a.ways careu..y considers bo"h saeand convenien" ac"ors so "ha" she can choose "he bes" 4roduc"s or herami.y and her chi.dren) Through "his cam4aign, Maggi can convince i"scus"omers "ha" once mo"hers "rus" Maggi, Maggi is abso.u"e.y sae "o use)

am4aign obec"ivesRo onvince cus"omers abou" Maggi consis"en" 8ua.i"yo :"reng"hen cus"omers+ emo"iona. bonding wi"h Maggi 4roduc"so %m4rove and enhance Maggi+s 4osi"ion in cus"omer+s hear" and win

bac# "he mar#e")

- am4aign ac"ivi"iesRo @ress conerence wi"h na"ionwide media "o c.ariy i"s s"a"emen"

abou" 4roduc"s 8ua.i"y commi"men")o =ndorsemen" by Hea."h e4er"s on TG "a.#show and news4a4ero Tes"imonia.s by !ey 4inion $eaders using ce.ebri"ies who are

mo"hers "o "e.. "he s"ories how "hey have chosen Maggi nood.es or"heir ami.y and "heir chi.dren by edi"oria.s and adver"oria.s onnews4a4erPmagaCines)


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o rea"ive adver"isemen" and vira. video "o drive audience+s

a""en"ion)

> nside Out: The "ru"h behind "he .ead con"en" crisis is "ha" Nes".e does no"add "hem de.ibera"e.y) To soon overcome "his crisis and moreover, "o gainbac# cus"omer+s "rus" and .oya."y, Nes".e shou.d a44.y "he %nside u" mode."o "e.. cus"omers a more convincing and com4e..ing s"ory abou" i"s 4roduc"):"ar"ing rom "ouching "heir unconscious behavior re.a"ing "o hea."h

awareness, "hen crea"ing "heir se.in"eres" or a convenien" and sae4roduc"s by o9ering a Maggi 4ac# o ins"an" nood.e which have been "hrougha s"ringen" series o 8ua.i"y and chemica. "es" as a so.u"ion or cus"omers,Nes".e can soon ge" bac# "o "he game and win bac# "heir ormer and4o"en"ia. cus"omers)

F> n9isible competition: To s"ay ahead o com4e"i"ion rom "he growing "rendin consuming green 4roduc"s, which are no" on.y good or consumers+ hea."hbu" a.so can he.4 "o 4ro"ec" surrounding environmen", we sugges" Nes".e "o.aunch a or4ora"e :ocia. es4onsibi.i"y (: 4roec" "o 4rove i"scommi"men" or sus"ainab.e grow"h and con"ribu"ion "o green environmen" in

%ndia) :ome #ey ac"ivi"ies "ha" Nes".e can "hin# o are river c.eaning and4uriying, new "rees 4.an"ing, coo4era"ing and s4onsoring or "he governmen""o save na"ura. conserva"ions, e"c)

> Be consumer dri9en! not competitor dri9en:%n order "o be consumer driven, Maggi shou.d unders"and wha" i"s consumersneed and wan") onsumers are no" on.y .oo#ing or 8ua.i"y and convenien"4roduc"s, which we have a.ready sugges"ed way "o innova"e Maggi 4roduc"s"o sa"isy "his need, bu" a.so see#ing or an emo"iona. bonding wi"h "ha"4roduc") %" is Maggi+s mission "o enhance "his bonding "hrough an emo"iona.mar#e"ing s"ra"egy, reminding i"s cus"omers abou" "heir nos"a.giaR 4M*Maggi memories6 con"es") Maggi mo"iva"es and encourages consumers "oshare "heir s4ecia. s"ories behind every 4ac#e" o Maggi "hey had consumedor "o share "heir own uni8ue way "o coo# Maggi, and "he oyu.ness "ha"Maggi has brough" "o "heir .ie) These memories and s"ories wi.. .a"er be4ub.ished on media channe.s na"iona..y so "ha" consumers can be remindedabou" how "hey have connec"ed "o Maggi or a.. "hese years)

OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO))


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decision making - group 6a - final assignment

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