Please answer

Repositioningng Maggi

Nestl India Ltd. (NIL), the Indian subsidiary of the global FMCG major, Nestl

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

Nestl 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.

2. What do you learn from the case above