Detailed Analysis of Nestle Maggi's Marketing and Management

This report examines the marketing and management strategies of Nestle's Maggi product in Nigeria. It begins with a background of Nestle and a description of Maggi, highlighting its significance and competition within the Nigerian market. The report then delves into Maggi's marketing strategy, including product differentiation and value proposition, followed by a detailed analysis of the marketing mix (product, price, place, and promotion). It also discusses the implementation of the marketing strategy, including the use of social media and promotional activities, and concludes with recommendations to address issues and improve Maggi's market position. The report emphasizes the importance of quality control, partnerships, and effective marketing to ensure Maggi's continued success and customer satisfaction in Nigeria's competitive food market. The report also uses references from various published journals and books to support the arguments.

Running head: MARKETING & MANAGEMENT
Marketing & management
Name of student
Name of University
Author note

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Table of Contents
Introduction......................................................................................................................................3
Company background......................................................................................................................3
Products and services description....................................................................................................3
Marketing strategy...........................................................................................................................4
Marketing mix of Nestle, Nigeria....................................................................................................4
Implementation of marketing strategy.............................................................................................5
Recommendations to resolve issues regarding marketing and management...................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

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Introduction
The report discusses the management of marketing considering the business organisation
Nestle and its product Maggi available in Nigeria. A brief description of the company and its
major product will be illustrated. The marketing strategy will consist of the product
differentiation, proposition of value while the marketing mix strategy will identify the major
components including product, price, place and promotions to make Maggi successful in the
competitive environment of Nigeria. Lastly, few recommendations have been provided to make
sure that Maggi makes a comeback and keep the customers satisfied by fulfilling their nutritious
needs effectively (Armstrong et al. 2015).
Company background
Nestle, Nigeria is one of the most popular and establish business organisation specialised
in health, nutrition and beverage products. It falls within the food processing industry, and it has
an operating income of over 13.16 billion and revenue over 89.46 billion. The mission of the
company is "Good Food, Good Life" and it has provided good quality nutritious choices to the
customers of Nigeria for fulfilling their needs and preferences. Being one of the largest food and
Beverage Company, it serves customers not only in Nigeria but all over the world (nestle-
cwa.com 2017). The company has more than 2000 brands that have been categorised from global
icons to local choices.
Products and services description
One of the most popular culinary products is the Maggi, which has managed to make
millions of people happy because of its convenience in cooking and getting it as a nutritious food

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within quick time. The demands and preferences of customers are changing, and so they prefer
products that consist of simple and understandable ingredients that require less processing and
can be locally produced as well. Maggi is a product that makes the company differentiate itself
from other company products, and it has played a vital role in contributing to the needs and
preferences of people within the Nigerian society (Berthon et al. 2012). The company competes
with Nissin, which delivers noodles, i.e., Top Ramen while there are other business competitors
like Honeywell, Indomnie, etc. that provided noodles as well.
Marketing strategy
It was seen that after the debacle, where Nestle’s Maggi was found to contain harmful
particles, the product had been re-launched though most of the damages were already done.
There is huge competition in the market and competitors like Honeywell and Indomnie have
taken the market by catching up most of the revenues of Nestle. The market share for Nestle also
fell, which made the company re-launch the product and plan for effective marketing strategies
to capture different market segments and attract more customers (Best 2012). The marketing
strategy enabled to position the product as a convenience product that is easy and quick to
prepare and has been positioned in the Nigerian market to target the working people (Hollensen
2015).
Marketing mix of Nestle, Nigeria
Product
Maggi, being one of the major product offered by Nestle in Nigeria is categorised into
soups, sauces, instant noodles, etc. The products are available as vegetable atta or oats noodles,

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cuppa mania, etc. The seasonings include combining various spices and flavours to give an
enriching taste that can meet up to the quality standards and satisfy the demands and preferences
of Nigerian customers with ease and efficacy (Huang & Sarigöllü 2014).
Price
Nestle has provided its product, i.e., Maggi by maintaining the cost-based pricing strategy
to enable competitive prices through compensation of higher products’ volumes. The company
has maintained consistency in the prices of products, which has helped in capturing most of the
market share through maintenance of highest quality standards as well.
Place
The products are available in various supermarkets in Nigeria and advertising, as part of
the promotional strategy has further helped in creating brand awareness and establish a strong
brand image to attract and retain customers too (Morgan 2012). The products are delivered at the
local stores too, which has created ease for customers to buy Maggi from anywhere in Nigeria.
Promotion
The advertising activities have helped in promoting the products, and this has enhanced
the brand image and identity, furthermore retaining the existing customers with ease and
efficiency. Maggi has offered discounts, and with the help of celebrity endorsements, the product
has created a sustainable place in the market (Wiedmann & Hennigs 2012).

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Implementation of marketing strategy
The marketing strategies are facilitated by promoting the product through the distribution
of free samples and including social media to gain customer awareness. The objective is to
capture a wider market segment and fulfill the needs of every market segments. The targeted
market segments are attracted with the introduction of all new Maggi vegetable atta and oats
noodles. Nestle has implemented the product differentiation strategy for making the products
differentiable from the similar kinds of products offered by other companies like Honeywell and
Indomnie (nestle-cwa.com 2017). From the marketing mix components, it could be understood
that promotion has helped the company to expose its value offered to the customers and make
them know about the benefits that will be gained by purchasing the product. The marketing
strategy is implemented by considering the social media as an effective platform to create better
brand awareness and influence the buying behaviours of consumers, thereby increasing the sales
revenue, maximize the profit level and gain the competitive advantage in business too (Huang &
Sarigöllü 2014).
Recommendations to resolve issues regarding marketing and management
 The promotions were not done properly in Nigeria during the certain situation, and so it is
important for Nestle to support various public commitments by aligning with the
sustainable development goals and objectives.
 Maggi is recommended to check the products properly and even the packaging process to
ensure that the products' quality is maintained.
 It is also recommended that Maggi managing deals and agreements with the e-commerce
websites to make a good comeback and ensure that the packets of noodles to be sold
much before its official comeback.

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 Management of partnership between Nestle and Ministry of Public Health is
recommended for organising a form for nutritious challenges and ensure that the
marketing activities are managed properly.
 Lastly, management of quality is recommended to make a comeback successful and
enable satisfaction of customers.
Conclusion
The background of Nestle showed that the product named Maggi had managed to remain
competitive and it helped in the creation of a good relationship between the business and its
customers. The strategy of marketing was implemented to create a sustainable place in the
Nigerian market, and for that, the marketing mix strategy had been used, which illustrated the
product itself, availability of the product at supermarkets, the prices and promotional activities
managed. The marketing strategies were implemented by considering the product differentiation,
inclusion of social media and identify the marketing mix elements too. Lastly, few
recommendations provided were the maintenance of quality by checking the packaging of
products, deals managed between Nestle and Ministry of health, etc.

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References
Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction.
Pearson Education.
Berthon, P. R., Pitt, L. F., Plangger, K., & Shapiro, D. (2012). Marketing meets Web 2.0, social
media, and creative consumers: Implications for international marketing strategy.
Business horizons, 55(3), 261-271.
Best, R. (2012). Market-based management. Pearson Higher Ed.
Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education.
nestle-cwa.com. (2017). http://www.nestle-cwa.com. Retrieved 27 October 2017, from
http://www.nestle-cwa.com/en
Huang, R., & Sarigöllü, E. (2014). How brand awareness relates to market outcome, brand
equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-
132). Springer New York.
Morgan, N. (2012). Time for ‘mindful’destination management and marketing. Journal of
Destination Marketing & Management, 1(1), 8-9.
Wiedmann, K. P., & Hennigs, N. (Eds.). (2012). Luxury marketing: a challenge for theory and
practice. Springer Science & Business Media.