It all started here!

25 years back, Nestle introduced its Maggi brand in India at a time when nobody used to eat noodles. Nestle had no idea that it was about to rewrite history, as Nestle went on to lay the foundations of the convenience food industry in India. Nestle managed to market Maggi brilliantly by promoting it as a convenience food brand. Maggi had a very clear-cut positioning as an instant noodles product and this was highlighted through the punch line ‘2 Minute Noodles.’ Critically, those were not just kids who were the daily consumers of Maggi, but even working couples with less time on their hands to cook food for themselves. With the launch of Maggi noodles, Nestle created an entirely new food category in the Indian packaged food market. Because of its first-mover advantage, supported by an aggressive marketing strategy, Nestle has successfully managed to retain its leadership in the instant noodles category over the years; a leadership that continues till today across segments (Nestle grew in India by 17% this year. Rs.4,000 crore plus is the expected turnover this FY). Nestle has followed this concept globally for diverse products. For example, Nestle is the largest canned pumpkin seller in the US, with around 90% market share.

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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