Advantage Of Maggi

Two most critical points of impact of technological advancements on Maggi are on the product itself and on the marketing technology adopted.

In technology assisted product development Maggi is certainly a market leader which is evident from its ever evolving ingredient mix .It recently introduced iron and iodine rich Maggi cubes especially targeting central and West African countries and the cubes have now become an important part of stable diet of people of these regions.

Source: http://www.coffeeandvanilla.com/maggi-cubes/

The marketing technology has witnessed a rapid and tremendous change with the ever-increasing presence of internet. Maggi has aligned itself with these changes pretty well and it has firm feet on internet and social

Bargaining power of suppliers

As “instant noodles” is a FMCG product, nearly 80-90% of instant noodles are sold through traditional sellers i.e. local retailers, mom and pop stores. Thus it is imperative that large investment has to be made in distribution channels to establish strong retails reach and promote penetration. Hence Suppliers/distributors relationship becomes very important factor.

Because of availability of many other choices which are almost as popular as Maggi itself, the distributor can easily replace the shelves with a competitor’s products. Hence the bargaining power is tilted towards distributors and Maggi need to maintain very good relationship with its distributors, to keep its competitors at bay. Finally consumers only way of buying Maggi is through some retailer, bargaining power of retailer is huge over Maggi or any of its competitors.

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Pressures from

Maggi is trying to change this notion and recently it has started to position itself as a morning healthy diet with new Oats meals offering. This can put Maggi into new segment.

Current rivalry in category

With new players entering and old rivals revamping their strategies, competition in Indian noodle market is intensifying. Listed below are the main rivals currently battling out in the market.  Nestle (Maggi)  Hindustan Unilever (Knorr Soupy Noodles)  GlaxoSmithKline Consumer Healthcare (Foodles)  Capital Foods Ltd. (Ching 's Secret)  ITC (Sunfeast Yippee noodles)  CG Foods India Pvt. Ltd.(wai wai)  Future Group (tasty Treat).

With expected growth of more than 20% in Indian noodle market, the competitors are coming up with many variants, improved distribution channels and catchy marketing campaigns. Kajol’s advertisement to promote Knorr soupy noodles has been very successful in gaining kid’s attention. Maggi countered it by roping in Amitabh Bachchan as primary face of its ad campaign. Similarly other rivals have come up with many strategies to differentiate themselves from others in the segment and corner bigger market