Rarely you will come across a marketing professional who is not aware of the 4P’s of Marketing. These P’s were first coined by Jerome McCarthy in 1960. But this was made famous by an American professor known as Dr. Philip Kotler in his book “Principles of Marketing”. I personally have one copy of 2009 edition and for me, it is one my favorite books in marketing.
Before I share what the new 4 E’s of marketing are let me first throw some light on our traditional 4 P’s of marketing:
Product : A product can be either a tangible good or an intangible service that fulfills the need of the customer.
Price: The price determination will impact the profit margin, costing, supply and demand.
Promotion: Sharing relevant product / service information to consumers.
Place: An ideal location to sell the product that will convert potential customers to customers.
Housing.com, a real estate property search portal that has been in the news for more wrong reasons than good. I assume more visitors visit the site to know about its CEO Rahul Yadav than to know more about the offering of Housing.com. On the other side, there is No Broker (www.nobroker.in) which has been working actively in the Indian real estate to change the rules of the game. Read More »
May 2015 will be remembered a problematic month for one of India’s biggest brand MAGGI noodles. Maggi is a well established brand of global FMCG giant Nestle and has been operating in India for nearly 3 decades now. The noodle brand turned from a loved one to a controversial one. One of India’s most loved food brand, especially children, is facing a ban in many states in India.
In India, Nestle launched Maggi noodles in 1982-83. Today, after 32 years, it ranks among the most recognized and reputed brands (not in current situation though). Over the years Maggi became synonymous with 2 minute noodles thereby resulting in strong positioning.
In 2014, Maggi noodles was ranked 18 in the BrandZ Top 50 Most Valuable Indian Brands study, conducted by Millward Brown and commissioned by WPP last year, with a valuation of $1,127 million. Experts have an opinion that the brand value has eroded by at least 30-35% in last 2 weeks. Since the time the controversy broke, Maggi India sales have dipped over 30%.
Brands falling in controversy is not a new thing to Indian market. Few years back Coke and Pepsi were involved in controversy over using pesticide as an ingredient in the drinks. Cadbury also came under the lens when the issue of worms in chocolate broke in. Both the brands have managed to bounce back after crises, it took long and sustained efforts to engage with the public.
What should Maggi do to come out of it?
In this troubled time the foremost thing Nestle should do is start communicating with its stakeholders. In its recovery mode, there are two key elements that need to be taken care of — trust of consumer and trust of investors.
To win the trust of investors the global CEO of Nestle PBulcke is in India and is attending the press meet to gain investor’s faith. “Maggi has been trusted in India for over 30 years. Trust of our consumers and safety of our products is our first priority anywhere in the world,” Bulcke said, adding: “Our priority now is to engage all stakeholders to clear the confusion. Maggi will be back on store shelves soon.” (source ET)