Maggi Msg Case Study

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- PESTEL Analysis

Political

-Stability of government

The political situation of the country and region where the company is located.

-Change of regulations

Changing of the regulations for quality standards of instant noodles to better regulate at bringing in more clarity.

Economic

-Rising prices of raw materials

Nestle can cope and well-placed to handle the rising price of raw materials through innovation, higher prices, better productivity and improved purchasing (THE FINANCIAL TIMES LTD, 2017).

- Globalization

Globalization create new opportunities for company in less industrial countries into new market.

Social

-Changing of attitudes and lifestyle

Social change involves changing of attitudes and lifestyle. Consumers more towards to healthier products and they return back to home cooking.

-Different culture and subculture

Every country has a unique culture and most countries still have a variety of subcultures such as morality, religion and race.

-Different consumer taste

Maggi were successful with the strategy according to the country’s culture. They came up with assam laksa flavor and tom yam flavor in some of the Asia countries such as Singapore and Malaysia.

Technological

-Rise of social media

The rising of social media can helps consumers interacting with company and having the ability to try and do therefore across a variety of platforms.

-Create new approach between consumers and company

Maggi engaging actively with customers in social media such as Facebook and Twitter.

- Innovation

Maggi need to change the behavior of traditional marketing and technology to ensure that stay ahead of competitors

Environment

-High levels of hygiene production techniques

Employees must follow and perceive basic food protection practices and maintain a high levels of personal cleanliness to prevent food product contamination (Wiley Periodicals, Inc., 2016).

- Public awareness

Public awareness regarding health issues also influences more to provide additional specialize in environment dynamics.

Legal

-Comply with local law and regulations

Singapore importers suspended the sale of Maggi brand instant noodles produced in India due to high doses of lead found in tests. All Nestle Singapore’s product ingredients fully comply with local food laws and regulations and regularly monitors the level of lead (Singapore Press Holdings Ltd. Co., 2017).

-The impact of government behaviour

Government behaviour will influence into a company. Government imposing the food law and regulations on the company. Therefore company must comply all the standard laws which set by government.

- SWOT Analysis

STRENGTHS

- Well known and well established

- Strong relationships with retailers

- Wide range of flavors and varieties

- Affordable pricing

WEAKNESS

- Maggi’s reputation was tarnished after a public dispute

- Too reliant on one flavor

OPPORTUNITIES

- Expand to the rural markets

- Further penetrate into existing markets

THREATS

- Immense competition

- Price Wars

- Social Media spreading false rumors

- MARKETING STRATEGY (S,T,D,P)

Segmentation

Geographic

- Can be found in almost all parts of Singapore. Places such as supermarket, convenient stores and provision shops and specialty shops.

Demographic

- For teenagers and middle age adults. From ages 16 to 55 years old would consume the Maggi.

- Older adults will also consume the product. But mostly buy and cook for their children’s or grandchildren’s as it is a well-known brand.

- For the whole family size. The Maggi family size pack will be beneficial for the whole family as it has more value and can be consume y the whole family

Psychographic

- Those who consume Maggi will tend to choose Maggi for their daily consuming needs like breakfast, lunch and dinner.

- Maggi 2 minute instant noodles are especially for those consumers who are engaged in very tight schedules with work or school.

Behavioral

- Maggi has introduced a convenient way, to reach their customer where they can find and consume it anywhere

- Maggi noodles have different flavors for different segment of people regardless of all age and backgrounds

- Maggi has a very strong brand loyalty as it has been a well-known product pass down by generations for many years.

Targeting

Market Targeting

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