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PROJECT REPORT

ANALYSIS OF MARKETING STRATEGIES OF


NESTLE MAGGI
In the partial fulfillment of Bachelor of Business Administration
(2015-2018)

SUBMITTED TO:

SUBMITTED BY:
Sagar Mathur
Enrollment No. 035420601715
BBA IIIrd Semester

(Affiliated To G.G.S Indraprastha University, Delhi)

ACKNOWLEDGEMENT
Survey is an excellent tool for learning and exploration. No classroom routine can
substitute which is possible while working in real situations. Application of theoretical
knowledge to practical situations is the bonanzas of this survey.
Without a proper combination of inspection and perspiration, its not easy to achieve
anything. There is always a sense of gratitude, which we express to others for the help
and the needy services they render during the different phases of our lives. I too would
like to do it as I really wish to express my gratitude toward all those who have been
helpful to me directly or indirectly during the development of this project.
I would like to thank my Project Mentor always there to help and guide me when I
needed help. Their perceptive criticism kept me working to make this project more full
proof. I am thankful to them for their encouraging and valuable support. Working under
them was an extremely knowledgeable and enriching experience for me. I am very
thankful to her for all the value addition and enhancement done to me.
No words can adequately express my overriding debt of gratitude to my parents whose
support helps me in all the way. Above all I shall thank my friends who constantly
encouraged and blessed me so as to enable me to do this work successfully.

Sagar Mathur
BBA 3rd Semester

EXECUTIVE SUMMARY
The project aims at understanding the Marketing strategies of Nestle Maggi. Research
has demonstrated conclusively that it is far more costly to win a new customer than it is
to maintain an existing one. And there is no better way to retain a customer than to
exceed his expectations. For this purpose it is essential to know the level of customer
satisfaction.
The focus of my research was the measurement of customer satisfaction provided by
Nestle Maggi. There can be no better opportunity to interact with the external as well as
the internal customers of an organization. Finally the results of the research verify the
fact that keeping the customer satisfied is the best strategy to not only retains the
existing customers but also to expand the business to new horizons.
Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are
products that are sold quickly and at relatively low cost. Examples include non-durable
goods such as soft drinks, toiletries, and grocery items.Though the absolute profit made
on FMCG products is relatively small, they generally sell in large quantities, so the
cumulative profit on such products can be substantial.
The term FMCG refers to those retail goods that are generally replaced or fully used up
over a short period of days, weeks, or months, and within one year. This contrasts
with durable goods or major appliances such as kitchen appliances, which are generally
replaced over a period of several years.
FMCG have a short shelf life, either as a result of high consumer demand or because
the product deteriorates rapidly. Some FMCGs such as meat, fruits and vegetables,
dairy products and baked goods are highly perishable. Other goods such as alcohol,
toiletries, pre-packaged foods, soft drinks and cleaning products have high turnover
rates.

TABLE OF CONTENTS

1. Introduction
1.1
Introduction to the report
1.2
Company profile
1.3

Review of literature

1.4

Objective & scope of report

1.5

Methodology

1.6

Limitation

2. Analysis & interpretation


2.1
SWOT Analysis
3. Conclusion & recommendation
Annexure
Bibliography

CHAPTER - 1
INTRODUCTION TO THE PROJECT

The Project entitled ANALYSIS OF MARKETING AND PROMOTIONAL STRATEGIES


OF MAGGI deals with the study of the Maggi Brand that was launched in India in the
year 1983, by Nestle India Limited, which became synonymous with noodles. Mainly,
this project studies the Marketing and Promotional strategies that are adopted by Nestle
India Limited for Maggi over the years. And also to know about the market position of
Maggi as a Brand, how they survived in the past, what all strategies they adopted to
become a well known and well established brand.

OBJECTIVES OF THE PROJECT:


To Understand the Marketing and Promotional Strategies adopted by
Nestle Maggi.
To understand the brand performance of Maggi product.
To understand Brand Imagery, Brand Quality perceived by customers,
Brand Credibility, consideration, superiority.
Brand extension of Maggi in terms of product diversity.

COMPANY PROFILE
INTRODUCTION TO NESTLE:

Nestl S.A. is among the largest consumer packaged goods companies


in the world, founded and headquartered in Vevey, Switzerland. Nestl originated in a
1905 merger of the Anglo-Swiss Milk Company, which was established in 1866 by
brothers George Page and Charles Page, and the Farine Lacte Henri Nestl
Company, which was founded in 1866 by Henri Nestl, whose name meant "Little Nest".
The company grew significantly during the First World War and following the Second
World War, eventually expanding its offerings beyond its early condensed milk and
infant formula products. Today, the company operates in 86 countries around the world
and employs nearly 283,000 people.

HISTORY OF NESTLE:
The company dates to 1867, when two separate Swiss enterprises were founded that
would later form the core of Nestl. In the succeeding decades the two competing
enterprises aggressively expanded their businesses throughout Europe and the United
States.
In August of 1867 Charles A. and George Page, two American brothers from Lee
County, IL, established the Anglo-Swiss Condensed Milk Company in Cham. Their first
British operation was opened at Chippenham, Wiltshire in 1873.
In September 1867, in Vevey, Henri Nestl developed a milk-based baby food and soon
began marketing it. Henri Nestl retired in 1875, but the company, under new
ownership, retained his name as Farine Lacte Henri Nestl.

Henri Nestl.
In 1877 Anglo-Swiss added milk-based baby foods to its products, and in the following
year the Nestl company added condensed milk, so that the firms became direct and
fierce rivals.
In 1905 the companies merged to become the Nestl and Anglo-Swiss Condensed Milk
Company, retaining that name until 1947, when the name Nestl Alimentana SA was
taken as a result of the acquisition of Fabrique de Produits Maggi SA (founded 1884)
and its holding company, Alimentana SA of Kempttal, Switzerland. Maggi was a major
manufacturer of soup mixes and related foodstuffs. The companys current name was
adopted in 1977. By the early 1900s, the company was operating factories in the United
States, United Kingdom, Germany and Spain. World War I created new demand for
dairy products in the form of government contracts; by the end of the war, Nestl's
production had more than doubled.
After the war, government contracts dried up and consumers switched back to fresh
milk. However, Nestl's management responded quickly, streamlining operations and
reducing debt. The 1920s saw Nestl's first expansion into new products, with chocolate
the company's second most important activity.

Nestl's logo used until 1970s.

Nestl felt the effects of World War II immediately. Profits dropped from US$20 million in
1938 to US$6 million in 1939. Factories were established in developing countries,
particularly Latin America. Ironically, the war helped with the introduction of the
company's newest product, Nescaf, which was a staple drink of the US military.
Nestl's production and sales rose in the wartime economy.
The end of World War II was the beginning of a dynamic phase for Nestl. Growth
accelerated and companies were acquired. In 1947 came the merger with Maggi
seasonings and soups. Crosse & Blackwell followed in 1950, as did Findus (1963),
Libby's (1971) and Stouffer's (1973). Diversification came with a shareholding in L'Oral
in 1974. In 1977, Nestl made its second venture outside the food industry by acquiring
Alcon Laboratories Inc.
In 1984, Nestl's improved bottom line allowed the company to launch a new round of
acquisitions, notably American food giant Carnation and the British confectionery
company Rowntree Mackintosh in 1988, which brought the Willy Wonka Brand to
Nestl.
The first half of the 1990s proved to be favorable for Nestl: trade barriers crumbled and
world markets developed into more or less integrated trading areas. Since 1996 there
have been acquisitions including San Pellegrino (1997), Spillers Petfoods (1998), and
Ralston Purina (2002). There were two major acquisitions in North America, both in
2002: in June, Nestl merged its U.S. ice cream business into Dreyer's, and in August a
US$2.6 billion acquisition was announced of Chef America, the creator of Hot Pockets.
In the same time frame, Nestl came close to purchasing the iconic American company
Hershey's, though the deal fell through. Another recent purchase includes the Jenny
Craig weight loss program for US $ 600 million.
In December 2005 Nestl bought the Greek company Delta Ice Cream for 240 million.
In January 2006 it took full ownership of Dreyer's, thus becoming the world's biggest ice
cream maker with a 17.5% market share.

In November 2006, Nestl purchased the Medical Nutrition division of Novartis


Pharmaceutical for $2.5B, also acquiring in 2007 the milk flavoring product known as
Ovaltine. In April 2007 Nestl bought baby food manufacturer Gerber for $5.5 billion.
In December 2007 Nestl entered in a strategic partnership with a Belgian chocolate
maker Pierre Marcolini. Nestl agreed to sell its controlling stake in Alcon to Novartis on
4 January 2010. The sale forms part of a broader US $39.3 billion offer by Novartis to
fully acquire the worlds largest eye-care company.

PRODUCTS OF NESTLE:
Nestl has 6,000 brands, with a wide range of products across a number of markets
including coffee (Nescaf), bottled water, other beverages (including Aero (chocolate) &
Skinny Cow), chocolate, ice cream, infant foods, performance and healthcare nutrition,
seasonings, frozen and refrigerated foods, confectionery and pet food.

EARNINGS OF NESTLE:
In 2009, consolidated sales were CHF 107.6 billion and net profit was CHF 10.43 billion.
Research and development investment was CHF 2.02 billion.

Sales by activity breakdown: 27% from drinks, 26% from dairy and food products,

18% from ready-prepared dishes and ready-cooked dishes, 12% from chocolate, 11%
from pet products, 6% from pharmaceutical products and 2% from baby milks.

Sales by geographic area breakdown: 32% from Europe, 31% from Americas

(26% from US), 16% from Asia, 21% from rest of the world.

JOINT VENTURES:
Nestl holds 26.4% of the shares of LOreal, the world's largest company in cosmetics
and beauty. The Laboratories Inneov is a joint venture in nutritional cosmetics between

Nestl and LOreal, and Galderma a joint venture in dermatology with LOreal. Others
include Cereal Partners Worldwide with General Mills, Beverage Partners Worldwide
with Coca-Cola, and Dairy Partners Americas with Fonterra.

INDUSTRY PROFILE
Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer
packaged goods. Items in this category include all consumables (other than
groceries/pulses) people buy at regular intervals. The most common in the list are toilet

soaps, detergents, shampoos, toothpaste, shaving products, shoe polish, packaged


foodstuff, and household accessories and extends to certain electronic goods. These
items are meant for daily of frequent consumption and have a high return.
The Indian FMCG sector with a market size of US$14.8 billion is the fourth largest
sector in the economy. The FMCG market is set to double from USD 14.7 billion in
2008-09 to USD 30 billion in 2012. FMCG sector will witness more than 60 per cent
growth in rural and semi-urban India by 2010. Indian consumer goods market is
expected to reach $400 billion by 2010.Hair care, household care, male grooming,
female hygiene, and the chocolates and confectionery categories are estimated to be
the fastest growing segments. At present, urban India accounts for 66% of total FMCG
consumption, with rural India accounting for the remaining 34%. However, rural India
accounts for more than 40% consumption in major FMCG categories such as personal
care, fabric care, and hot beverages. In urban areas, home and personal care category,
including skin care, household care and feminine hygiene, will keep growing at relatively
attractive rates. Within the foods segment, it is estimated that processed foods, bakery,
and dairy are long-term growth categories in both rural and urban areas.The growing
incline of rural and semi-urban folks for FMCG products will be mainly responsible for
the growth in this sector, as manufacturers will have to deepen their concentration for
higher sales volumes.
Major Players in this sector include Hindustan Unilever Ltd., ITC (Indian Tobacco
Company), Nestl India, GCMMF (AMUL), Dabur India, Asian Paints (India), Cadbury
India, Britannia Industries, Procter & Gamble Hygiene and Health Care, Marico
Industries, Nirma,Coca-Cola, Pepsi and others.As per the analysis by ASSOCHAM,
Companies Hindustan Unilever Ltd , Dabur India originates half of their sales from rural
India. While Colgate Palmolive India and Marico constitutes nearly 37% respectively,
however Nestle India Ltd and GSK Consumer drive 25 per cent of sales from rural India.
A rapid urbanization, increase in demands, presence of large number of young
population, a large number of opportunities is available in the FMCG sector. The
Finance Minister has proposed to introduce an integrated Goods and Service Tax by

April 2010.This is an exceptionally good move because the growth of consumption,


production, and employment is directly proportionate to reduction in indirect taxes which
constitute no less than 35% of the total cost of consumer products - the highest in Asia..
The bottom line is that Indian market is changing rapidly and is showing unprecedented
consumer business opportunity.

MAJOR COMPETITORS OF NESTLE MAGGI


Maggi instant noodles, foods major Nestle's flagship brand that has dominated the
Indian instant noodles market for nearly three decades, is losing market share on a
monthly basis to newer entrants such as GlaxoSmithKline's (GSK) Horlicks Foodles,

Hindustan Unilever's (HUL) Knorr Soupy noodles, Big Bazaar's Tasty Treat, Top Ramen
and several other smaller players, according to data by market research firm Nielsen.

The data shows that Maggi's share of instant noodles, on an all-India basis, across
urban markets, has slipped consistently between December '09 to July '10. While Maggi
instant noodles (minus vermicelli) had a 90.7% share in December '09, the share
dropped to 86.5% in July '10 on an all-India basis.
A regional split of the data shows that Maggi's instant noodles' value market share has
fallen across the east, south, north and west zones for the same period.
Analysts say with new competition, Maggi's market share is certain to get impacted , but
add that Nestle has the potential to expand the Rs 1,300-crore instant noodles category
which itself is growing at a rapid 15% annually. A detailed email sent to Nestle on
Thursday elicited no response.

Apart from HUL and GSK which have positioned their noodles as 'healthy' snacking
options targeting kids and mothers, others like Indo-Nissin's Top Ramen, Capital Foods'
Ching's Secret and CG Foods's Wai-Wai , though around for long, are stepping up
marketing efforts to take advantage of category growth. Besides, private brands like Big
Bazaar's Tasty Treat and Aditya Birla Retail's Feasters are notching up share.
Manoj Menon, FMCG analyst at brokerage firm Kotak Securities, wrote in a report
earlier this month: "Maggi faces product substitution risk and brands like Knorr and
Foodles could potentially impact its incremental growth. Nestle faces a challenging
competitive environment in culinary."
GSK, which entered the category in December last year, has taken away share from
Maggi mainly in the South and East riding on the equity of Horlicks and its wellentrenched distribution in the regions.
GSK's executive VP, marketing, Shubhajit Sen, said: "Consumers were looking for a
choice in instant noodles; combined with that, the equity of Horlicks is leading to a lot of
trails. The initial response to Foodles is much higher than our expectations."
On the other hand, HUL, which rolled out Knorr Soupy noodles in the South this
February, had to postpone the brand's national launch due to capacity constraints
because of heavy consumer offtake. An HUL spokesman said: "We are very pleased
with the performance of Knorr Soupy noodles."
Private brands are whetting appetites of consumers too. According to Devendra
Chawla, business head, private brands, Future group: "The category boundary is set to
be re-drawn. From a snack food targeted at children, instant noodles category has
evolved as a mainstay meal even for grown ups."
Mr Chawla said Tasty Treat was the second biggest instant noodles brand in its Big
Bazaar stores after Maggi. The brand packaging was revamped last year and Future
plans to roll out additional variants in a month's time taking the number of variants to
nine from the existing three.

INTRODUCTION

HISTORY OF MAGGI INDIA:

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. Because of its first-mover advantage, NIL
successfully managed to retain its leadership in the instant noodles category even until
the early 2000s.
NIL offered a variety of culinary products such as instant noodles, soups, sauces and
ketchups, cooking aids (seasonings), etc., under the Maggi brand (Refer to Exhibit II for
Maggi's product portfolio as of mid-2006). Of these, instant noodles had been NIL's
main product category in the culinary segment since the launch of Maggi 2 Minute
Noodles (Maggi noodles) in 1982. Over the years, Maggi noodles became a popular
snack food product in India.
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. 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 July 2001, Maggi replaced Nescaf (NIL's coffee products brand) as the company's
core brand. Nescaf had been NIL's core brand since 1998.
Commenting on the shift, Carlo Donati (Donati), chairman and managing director, NIL,
said, "The focused approach on Nescaf, which was the company's flagship brand over
the last few years, has yielded rich dividends and we plan to replicate the same in case
of Maggi as well."
In the early 2000s, the Nestl Group had been taking measures to transform itself into a
'health and wellness' company. The company had also set up new research and
development facilities with a view to improving the attributes of the existing Nestl
products to make them healthier, and to develop new health and wellness products.
Since the early 2000s, the Nestl Group had been introducing 'health and wellness
products all over the world. In India, NIL introduced new 'healthier' weaning and milk
products

in

2004.

In March 2005, the Maggi brand too took to the health route with the launch of
Vegetable Atta Noodles. NIL made use of the group's extensive research and
development facilities in developing this new 'healthy' product.

MAGGI INDIA:
Nestle India Limited is the market leader in Indian Noodle Market with its Maggi Brand
of Noodles which was pioneer brand launched in 1983 in the packaged food market of
India. It took the challenge and established Maggi in Indian market considered to be
conservative and typical about food consumption. It appropriate realization of target

segment, effective positioning and effective promotion and sales made Maggi to
Noodles in India as Xerox it to photocopier. NIL had introduced sauces, ketchups and
soups under Maggi brand to reap benefit of brand popularity and image and contribute
to financial gains by 1990.Maggi also became successful in sauces, ketchups and
soups Market in India. Though NIL tried to extend to other ready to eat products like
pickles, cooking aids and paste, It was unsuccessful so dumped those products. Maggi
Brand of products sustained recession in 2000 and 2001 in India by introducing
economy packets.

To fulfill novelty needs of customers and revitalize Maggi Noodles Brand NIL made
different attempts by introducing new formulation to new taste but customers resisted
change and Maggi had to reintroduce Maggi Noodles in same taste. Maggi Noodle had
till 2005 five product line on noodles with four variant in Maggi 2 Minutes Noodle. In
2006 in compliance with NIL target to be health and Wellness Company Maggi
repositioned it as health and taste food products. NIL has also introduced with taste and
product line in Sauces and Soup Market under Maggi to catch new segment, revitalize
brand, compete with other producers and fulfill expectation of customers.

In 2005 Maggi brand worth was 3.7 billion from 1.7 billion market worth in 1.7 billion in
2003. Maggi Noodle is Market leader with around 80% market share in Noodles/Pasta
and Maggi Sauce is market leader with almost 37% of market share in 2005 in 1.8
billion market of India. Knorr has taken over Maggi in Soup market recently.
In 2005 Maggi was the highest spender in the Promotion and Sales in the Indian Market
in the Noodles Category.
Maggi is competing with Heinz Sauces and Ketchup, Knoor Soups, Kissin Sauces and
Ketchup, Top Ramen, Sunfeast Pasta Wai Wai and 2 PM in corresponding categories of
products and variants

MAGGI TODAY:
The year 2003 saw India leading in worldwide Maggi sales. The brand has grown to an
estimated value of Rs 160-170 crore and contributes at least 8 9% to Nestle Indias
top line. All the same, some FMCG analysts feel that the brand has not done much to
expand the noodles category. Even after 20 years of its launch, the size of the instant
noodles market is yet quite small at Rs 200 crore. But yes, the parent company, Nestle
India Limited has certainly encouraged the brand to enter into other culinary products.
Carlo Donati told a leading newspaper that he wants to sell two and a half times of what
he is selling today, in the next 10 years.
Of course, being a first-mover - or even a market dominator - counts for nothing if
marketers let their guard down. Maggi noodles, which built itself on the taste-andconvenience platform through the 80s and early 90s, started facing the heat from Indo
Nissins Top Ramen brand around 1995. The latter began pushing forward aggressively
on a combination of taste variants, smart audience segmentation and Shahrukh Khans
brand endorsement.
Nestle promptly re-jigged its offering with a new taste - which didnt go down well with
the consumer. In 1999, Maggi was relaunched with its original taste, and sustained
efforts saw the brand reclaiming lost ground. Since then, the brand has been innovating

constantly to keep share. Maggi adapted to local tastes and withstood competition over
the years and has continuously sensitised itself to the evolving Indian consumer, says
Martial Rolland, chairman and managing director, Nestle India.

MARKETING MIX

PRODUCTS OF MAGGI:
NOODLES:
MAGGI 2 MINUTE NOODLES:
MAGGI 2-Minute Noodles is one of the largest and most loved food
brands

that

defines

Instant

Noodles

in

India.

Continuing to spread joy as it has done for the last 25 years, your favorite
MAGGI Noodles is as tasty as ever and even provides essential nutrients
for all stage of your life. With the goodness of Protein and Calcium,

MAGGI Noodles is available in 4 delectable flavors Masala, Chicken,


Tomato and Curry.

MAGGI 2- MINUTE NOODLES

MAGGI VEGETABLE ATTA NOODLES:


An offering that exemplifies Taste Bhi Health Bhi, MAGGI Vegetable Atta
Noodles is tasty because it is loaded with everyones favourite MAGGI
Masala and healthy because it now has more real vegetables and is
packed with the power of fiber.

MAGGI VEGETABLE ATTA NOODLES

MAGGI CUPPA MANIA:


Each offering of MAGGI Noodles has been developed keeping in mind the
Indian palate and what you like. Since in todays fast-paced busy life,
multitasking is a reality, you need something that fits with your rushed
lifestyle a product which is tasty and healthy, is convenient to prepare
and eat and also satiates your hunger .
MAGGI Cuppa Mania is a combination of all the above! In an easy to carry
on-the-go Cup format, MAGGI Cuppa Mania comes in two mouth watering
variants Masala Yo! And Chilly Chow Yo! Packed with real vegetables
and the goodness of Calcium, just add garam paani* to the Noodles and
voila! A cupful of delicious MAGGI Cuppa Mania is ready for you to carry
on jaani!

MAGGI CUPPA MANIA

SOUPS:
MAGGI HEALTHY SOUPS:
MAGGI

was

the

pioneer

of

Instant

Soups

in

India.

The new MAGGI Healthy Soups have been carefully prepared through the
Research and Development efforts of Nestl Group and are even more
delicious, quick to prepare, convenient and healthy. Taste Bhi, Health

Bhi!.
MAGGI Healthy Soups contain real vegetables, are low fat, low
cholesterol and free from synthetic colours and added MSG.
These superior healthy soups are now available in an enhanced range of
12 delicious variants:
Healthy Style
- Rich Tomato
- Mixed Vegetable
- Creamy Chicken
- Masala Noodles
Chinese Style
- Hot & Sour Vegetable
- Sweet Corn Vegetable
- Sweet Corn Chicken
- Oriental Thai Noodles
Chef Style
- Cream of Mushroom
- Tangy Tomato Vegetable
- Sweet n Sour Tomato Noodles
- Palak Corn

SANJEENI MAGGI HEALTHY CUP:


Traditional recipes for good health, made with ingredients time-tested for
their goodness, like Amla, Spinach, Dal and tomato. Available in an easy
to use cup-just add hot water and treat yourself to a cup foll of good life.

MAGGI SOUPS

SAUCES:
MAGGI SAUCES:
MAGGI Sauces have been an integral part of the Indian consumers'
household for decades now. To cater to the diverse Indian palate, MAGGI
has a host of variants like:
-

The quintessential Rich Tomato Ketchup and Rich Tomato Sauce.


The unique Hot & Sweet Tomato Chilli Sauce and Oriental Chilli

Garlic sauce.
- The Indian style Tomato Chatpat Sauce
Lipsmacking tastes and vibrant packaging make MAGGI Sauces true to its
slogan - It's different!

MAGGI SAUCES

MAGGI PICHKOO:
Pichkoo is a small doy pack which makes MAGGI Tomato ketchup affordable
to a host of new consumers. And now, MAGGI makes the delight "Bigger' by
introducing a Bada Pichkoo. A large Tomato Ketchup doy pack which ensures
that

the

fun

goes

on

and

on.

It's endearing name, packaging and great taste evoke a resounding reaction.
"New MAGGI Pichkoo - It's different!"

MAGGI PICHKOO

PASTA:
MAGGI PAZZTA:
To further delight the consumer, MAGGI now launches another range of
products for tasty and healthy eating NUTRI-LICIOUS PAZZTA. This
quick cooking pasta can be conveniently prepared in just 5 minutes, at
any time of the day that you want a tasty and healthy light meal. MAGGI
NUTRI-LICIOUS PAZZTA is made from 100% Suji, and is a source of
Protein and Fibre. It has being launched in two delicious flavours Masala
Penne and Cheese Macaroni.

MAGGI PAZZTA

COOKING AIDS:
MAGGI MAGIC CUBES:
MAGGI Magic Cubes enhance the taste of your everyday dish, making it a
special for the entire family. Available in two variants Vegetarian Masala
& Chicken MAGGI Magic Cubes are an ideal seasoning for a variety of
dishes such as Veg Biryani, Chicken Biryani, Chicken Curry etc. And its

so easy to use!
MAGGI BHUNA MASALA:
MAGGI is revolutionizing the Indian kitchen with its latest offering
MAGGI Bhuna Masala. It is any mothers ally for conveniently cooking
great tasting, wholesome food for the family everyday. Based on intensive
research and in-depth understanding of Indian food habits and cooking
practices, MAGGI Bhuna Masala allows the housewife to prepare a large
variety of tasty dishes without the hassle of chopping and frying. The
dishes retain that special touch of the housewife as she adds her own
spices.. Standing strong on its promise of Taste Bhi, Health Bhi,
MAGGI Bhuna Masala comes with "no added preservatives", "contains
only 1 tbsp* of oil" and "tastes just like homemade." Gives you a
perfect dish in three simple steps:

Open the pack & pour contents in the pan


Add vegetables/paneer/chicken/rajma etc.
Add spices and cook
MAGGI Kitchen Secrets Bhuna Masala comes in two variants:Bhuna Masala for Gravy Dishes- a ready- mix of Onion, Tomato, Ginger
and Garlic fried in refined oil. (Use it to make tasty dishes like Zaikedaar
Chicken, Rajma, Kolhapuri Mutton, Aloo Potol etc.)
Bhuna Masala for Vegetables and Dal- a ready- mix of Onion and
Tomato, fried in refined oil. (Use it to make tasty dishes like Palak corn,

Dal Tadka, Bhindi Masala, Urlai Roast etc.)


MAGGI COCONUT MILK PRODUCT:
With MAGGI Coconut Milk Powder you can make rich coconut milk quickly
and conveniently by simply adding warm water. It is manufactured from
the best Sri Lankan coconuts. Easy to use and ideal for curries, rice
preparations, cakes, cookies and blender drinks. MAGGI Coconut Milk
Powder gives you the taste of real coconuts and has no added
preservatives.

MAGGI PIZZA MAZZA:


Now you do not need to order pizzas from outside and wait for 30 minutes.
With MAGGI Pizza Mazza you can prepare delicious pizzas within
minutes. You can also have the mazza of the pizza on other items like
naans, footlongs and of course the most easily available of them all
bread slices. Available in a 300 gm jar, each bottle is good for 5 pizza

bases.
MAGGI MASALA AE MAGGI:
The first ever fortified taste enhancer that can be used across different
cuisines in India. It is not a simple masala, but is unique in that it efficiently
enhances the taste inherent in the food ingredients already present.
It is specifically fortified with Iron, Vitamin A & Iodine that are known to be
widespread deficiencies in India.
Everyday food now becomes delicious & healthier in 2 simple steps:

Cook Dish as you normally do

Add 1 sachet 2-3 minutes before taking off the flame and stir well.

COOKING AIDS

PRICE OF MAGGI:

Considering the price points in the market for Maggi, it should continue to
position itself in the snack category itself, since few would be willing to

accept it as a meal.
The company is taking no chances and is extending its distribution reach to
smaller towns and cities. Maggi happens to be Nestls most widely
distributed brand in the country. Through independent channels, it reaches
those villages where the company has no presence, according to Hegde.
This is also the time that Maggis value-for-money pack priced at Rs 5 is

expected to come handy. (The regular pack comes for Rs 10.)


Affordable by all income groups.

PLACE( DISTRIBUTION);

The distribution network is well spread.


Easily available in all retail stores.
Distribution channel PRODUCER - DISTRIBUTOR CONSUMER

RETAILER

EXAMPLE OF MAGGI PLACE ( DISTRIBUTION)

PROMOTION OF MAGGI:

They promote their product very effectively through television.


They have applied the strategy of brand extension.
They also sponsor various cookery shows to promote alternate usage of

products.
They also use strategy of free product samples to promote it.
Celebrity endorsements. Eg. Javed Jafferi PROMOTION
Less promoted as compared to maggi.
No particular celebrity endorsement.
The utter confusion regarding the long-term strategy for Kissan brand was visible

through the experiments that were conducted on this brand by Hll.


But with a brand which had a tremendous equity during the late nineties and
early 2000, HUL had weird plans. One of the major casualties of MS Banga's
Power brand strategy was Kissan. During the early 2000, the brand Kissan was
rebranded as Kissan Annapurna. Kissan Annapurna was marketing not jams and
squashes by Atta, salt and other staple foods. Later Annapurna and Kissan was
splited into two separate brands , one concentrating on staple foods and other on
processed foods. This migration strategy proved to be very costly for both Kissan

and Annapurna brand. Kissan was synonymous with Jams and Squashes during
its initial years. Kissan Ketchup was a market leader in ketchup segment but
these experiments and myopic strategies pushed the brand behind the focused

and aggressive Maggi.


So all through the period 2001-2005, Kissan was in a sticky wicket. But now
according to reports, the brand mandarins of HUL is now clear about Kissan as a
brand for processed food like Jams , ketchups and like, That change is visible in
the recent campaign of Kissan which takes a unique view of Ketchup. Taking the

tagline " Aao banaye pakode behtar" translated to " Making Pakode taste better".
In these series of ads, the brand plays a second fiddle to the main snack. The
brand takes the positioning of a "Great Accompaniment "

Maggi has faced lot of hurdles in its journey in India. The basic problem the brand faced
is the Indian Psyche. Indian Palate is not too adventurous in terms of trying new tastes.
That may be the reason why we are still stuck with Dal. So a new product with a new
taste that too from a different culture will have difficulty in appealing to Indian market.
Initially Nestle tried to position the Noodles in the platform of convenience targeting the
working women. But it found that the sales are not picking up despite heavy
promotion .Research then showed that Kids were the largest consumers of the brand.
Realising this, Nestle repositioned the brand towards the kids using sales promotions
and smart advertising.Now Indians are the largest eaters of Maggi Noodles in the world.
Maggi Noodles is a marketing success story.
During 1997 Maggi changed its formulation. It was during that time that Indo Nissin - a
Japanese company launched its Noodles brand "Top Ramen" with lot of promotion and
with SRK endorsing the brand. TopRamen gave Maggi a run for its money. The change
in taste of Maggi was a mistake. The consumers rejected the new taste of Maggi. And in
1999 Maggi relaunched Noodles with the original taste. Nestle was ready to accept the
consumers verdict and it paid off handsomely. Top Ramen could not sustain the growth
it had for long.

Maggi's campaigns were revolved around its "convenience to make and good to eat "
qualities. Ready in " 2 minutes " was a proposition that was well received by the market.
In 2005 Nestle made a very smart move. It knew that although kids love noodles, the
parents were bothered about the health aspect of Noodles which was made of Maida.
Hence Maggi launched Maggi Atta Noodles with the baseline " taste bhi health bhi"
.Reports suggest that after 10 months of the launch , the product has been well
received by Indian consumers. Maggi noodles is an example of a brand that knows the
customer and willing to learn from the mistakes.
Maggi also tried to leverage the success of the Noodles to other food products like
sauces , tastemakers , soups etc.
Maggi sauces needs special mention because it is another success story. Maggi have a
market share of 45% in the 180crore ketchup market in India. Maggi leveraged the
brand equity very effectively. The product quality was good and the communication was
excellent. The brand was positioned as a "Different" sauce with the baseline " Its
different".
Customers was intrigued as to what is different about the brand and was curious to try
the sauce ( may be surprised to find nothing different,but that is marketing honey!). The
ads featuring Javed and Pankaj kapoor was superb and funny. It was created by JWT.
The new campaigns are handled by Publicis and the baseline has been changed to "
enjoy the difference".
There was no need to change the baseline,may be ad agencies have an ego problem in
accepting the creativity of another agency. So agencies change the baseline even at the
cost of the brand.In this case even though the new baseline " enjoy the difference" was
not very different from the old one, was it a change for the sake of change ?
I strongly feel that the brand managers should take the ownership of the brand and the
way it is communicated. If it is left to agency alone, every time the agency changes, the
communication changes.
Maggi after its long and tough journey is enjoying its well deserved success.

MAGGI SAUCE AD JAVED JAFFERY

MARKETING & PROMOTIONAL STATEGIES

PRODUCT LIFE CYCLE OF MAGGI:


INTRODUCTION:

The Product launched keeping in mind the working women and childrens.
It was the pioneer in instant noodle market.
Distribution Stage PRODUCER DISTRIBUTORS RETAILERS
CONSUMERS.

PRICING: The initial pricing strategy was low pricing strategy to make
product affordable.

PROMOTION

Promoted with tag line BAS 2 MINUTE.


Promotion done by giving gift on empty packs.
Promotion in school.

GROWTH:
Increased No. of sales.
Accepted as ready to eat food.

Enjoyed 50% market share valued at 250 crores.


Profits begin to rise.
Maggi become the No. 1 brand in Instant noodles market.
PRICING: Prices were kept normal.
PRODUCT: No any new changes
PROMOTION: Promoted with the tag line Good to eat fast to cook
MATURITY:

Declining sales growth.


Saturated market.
Extending product line.
Large promotional offers.
Entrance of new players - During the period of 90s MAGGI faces the

tough competition from TOP RAMEN.


PRODUCT: MAGGI introduced wide variety of products like Dal atta

noodles, chicken maggi, maggi cuppa mania.


PRICE: Maggi still comes in very affordable prices starting from Rs. 5,they

reduced the quantity instead of increasing price.


DISTRIBUTION: Distribution become more intensive. Various intensive
programs for encouraging products over other competitors.

DECLINE:

Sales saw a decline in 1990s Formulation changed from fried base to

air dried base.


New product launched but failed- Dal atta noodles sambar flavor
Tough competition from Top Ramen.
Failure of other products like Soups, Cooking aids etc.

PRODUCT LIFE CYCLE

STRATEGIES ADOPTED BY NESTLE:

Nestle

manages to create new product categories under the

brand name of MAGGI. They adopted the following strategies:

Maggi introduced the magi sauce category and pizza variant. It is


always easier to promote a new product under the name of the
established brand as the expenditure and recognition time is less.

Nestle also used the cultural base marketing in India as knowing the
fact that Indian people like Rice, they introduced Maggi Rice Noodles

Mania.
Nestle was able to successfully use the umbrella branding for Maggi.
They introduced many variant under the brand name of Maggi. By
doing so, They were successful in making the product popular.

Maggi also successfully able to position its noodles in the minds of the
consumers as the fast food item.

On the other hand they also introduced some categories which are
having the complete diet in the form of noodles. They said that these
contain some protein and calorie level which is must for the children.
By doing the emotional marketing they were successfully able to
promote these products: MAGGI Vegetable atta noodles, Dal atta
noodles, Rice noodle mania, Healthy soup etc.

STRATEGIES ADOPTED BY NESTLE MAGGI:


Strong Customer Relations: The campaign designed by Nestl for
Maggis silver jubilee hopes to work on the brands strong consumer connect
through television, the Internet and print. The jingle gets a prominent play in the
television campaign. Nestl, Indias largest food products company, has decided
not to litter the sky with hoardings on the occasion. Instead, the ads will play on
nostalgia. Consumers who first sampled the brand as kids now run households.
The campaign seeks to strengthen the association.
Thus, customers will be invited to share their Maggi moments with the
company. If the company likes the way you prepare Maggi, you could find
your photo on Maggi packs. A new website called www.meandmerimaggi.com is
also in the works.
Good Packaging and Strong Dealer Vendor Relations: Convenience
was the unique selling proposition of Maggi when it was launched 25 years ago.
For the first time, consumers got something that was hygienically packed and
convenient to prepare. It was also the first fusion experiment on food in India.
Continuous process innovation: Instant noodles was an entirely new
category in the country, but it was given an Indian twist. Maggi came in four
variants:Masala, chicken, sweet & sour and capsicum. Of these, only two have
survived masala and chicken which sells largely in the eastern states.Masala
continues to be the flagship flavour. In the days that followed, it experimented
with more variants, like a garlic- and onion-free one for Gujarat.Some of these
still exist, others were discontinued.
The turning point came in 2005, when Nestl came out with Maggi atta
(whole-wheat flour) instant noodles. All over the country, atta is considered

healthier than maida or refined flour which the company was using from day one.
This helped the company take the health platform, though Nestl General
Manager (food business) Shivani Hegde insists that the product never ran the
danger of being classified junk food. It was then that it added the tagline, health
bhi, taste bhi (health as well as taste).
Repositioning as a healthier snack: It is no longer an aspirational
product for any socio-economic category of consumers, says Hegde
That was also the time when Nestl was repositioning itself worldwide as a
health and wellness company. At the grassroots level, Maggi started
associating with quiz contests and other such events connected to mental and
physical wellbeing.
This positioning gave Nestl the platform to launch more products under the
Maggi brand. It already had Maggi soups, sauces and coconut milk in the market,
but given the strong equity of the brand, Nestl could now extend it to newer
categories. Thus, it recently came out with fried masala paste.
In 2008, two brand extensions Maggi Bhuna Masala and Maggi Cuppa Mania
Instant Noodles .
Price Incentives: The company is taking no chances and is extending its
distribution reach to smaller towns and cities. Maggi happens to be Nestls most
widely distributed brand in the country. Through independent channels, it reaches
those villages where the company has no presence, according to Hegde. This is
also the time that Maggis value-for-money pack priced at Rs 5 is expected to
come handy. (The regular pack comes for Rs 10.)
Capturing New Customer Base : Maggi realised that one of the reasons
for a low market share in Gujarat was that most of gujaratis do not eat garlic and
Onions so for Gujarat Maggi has come up with a special product which is devoid
of onions and garlic and marketed it as Jain Maggi. This helped them gain a
completely unconquered market of Jain Noodle eaters.

Maggi turns 25; Nestle comes up with new campaign


Nestle India is out with a new marketing drive to mark the 25th anniversary this
year of its instant Noodles brand, Maggi Called Me & Meri Maggi, the campaign
is celebrating the consumers bond with Maggi. The company is doing360
degree activation across television, print and the internet, beside on-ground

activities.

Nestle

has

also

launched

an

interactive

website

for

the

consumers,www.meandmeri.in
The packaging has been tweaked to accommodate the pictures of consumers
whose entries the Company chooses. If a consumer has a story to tell about
Maggi will put him or her on the Packaging, TV or print,

MAGGIS BRAND EXTENSION:


In 1998, Nestle launched Maggis first brand extension, Maggi soup. At this stage, There
was no organized packaged soup market in India. Nestle planned to create a market for
packaged soup as it felt the category had a lot of potential. However, according to analyst,
the company had introduced soups only to cash in on the Maggis brand name, and was
never very serious about the segment.

In 1993, Sweet Maggi, the first variant of Maggi noddles was launched. The company
supported the launch with a huge advertisement outlay that amounted to 75% of the
total yearly expenditure on the Maggi brand. However, the product failed to generate the
desired sales volume and Nestle was forced to withdraw it. At the end of the year, Maggi
noodles was generating sales volume of around 5000 tonns and remained a loss
making proposition for Nestle.
To boost sales, Nestle decided to reduce the price of Maggi noodles. This was made
possible by using thinner and cheapeer packaging material, the company also
introduced money saver multi packes in the form of 2-in-1 pack and 4-in-1 packs. As a
result volume increases phenomenally to 9700 tonnes in 1994 and further to 13000
tonnes in 1995. Maggis euphoroia was, however, short lived, as sales stagnated in
1995 at the previous years level. With soup business being threatned by a new entrant
Knorr soups launched in 1995, offering 10 flavors against Maggis 4 the company
started rethinking its strategies towards the soup market.
In order to stretch Maggis brand to include Indian ethenic foods the company tied up
with a Pune based chordia foods to launch pickles under the year 1995. The company
also tied up with Indian foods fermentation (IFF), a Chennai based food company to
market popular south Indian food preparation such as sambher, dosa, vada and spices

in consumer packs in Dec 1995. The company reportedly saw a lot of untabbed
potential in the market for ready to use south Indian market.
In 1996, products from these two ventures received lukewarm response from the
market; sales were rather poor in the regions in which they were aunched. Analysts
attributed the failure of these Maggi extensions to the fact that Nestl seemed to be
particularly bad at dealing with traditional Indian product categories. Maggi noodles
performed badly in 1996. Despite slow sales in the previous two years, Nestl had set a
sales target of 25,000 tonnes for the year. However, Maggi couldnt cross even 14,000
tonnes. Adding to the company woes was the failure of Maggi Tonites Special, a range
of cooking sauces aimed at providing restaurant-like-taste to food cooked at home. The
range included offerings such as Butter Chicken gravy and tomato sauce for pizzas.
Understanding these failures, and buoyed by the fact that the Maggi brand finally broke
even in 1997, Nestl continued to explore new options for leveraging on the brand
equity of Maggi noodles. The company realized that the kids who had grown up on
Maggi noodles had become teenagers by the late 1990s. As they associated the
product with their childhood, they seemed to be moving away from it. To lure back these
customers and to explore new product avenues, Nestl launched Maggi Macaroni in
July 1997. According to analysts, Maggi Macaroni was launched partly to deal with the
growing popularity of competing noodles brand Top Ramen. Maggi Macaroni was made
available in three flavors, Tomato, Chicken, and Masala. The company expected to
repeat the success of Maggi noodles with Maggi Macaroni. As with most of its product
launches, Maggi Macaronis launch was backed by a multi-media advertisement
campaign including radio, television, outdoors and print media with the tagline, Tum
Roz Baby.
The products pricing, however, proved to be a major hurdle. A 75-gm Maggi Macaroni
pack was priced at Rs 11, while a 100-gm noodles pack was available at Rs 9.
According to analysts, Nestl failed to justify this price-value anomaly to customers, who
failed to see any noted value addition in Maggi Macaroni (packaging and flavor variants
were similar to those of Maggi noodles). In addition, customers failed to see any

significant difference between Maggi Macaroni and the much cheaper macaroni that
was sold by the unorganized sector players. The biggest problem however was the
taste of the new product. Since macaroni is thicker than noodles, Maggi Macaroni did
not absorb the tastemaker well and consequently did not taste very good. The interest
generated by the novelty of the product soon died out and sales began tapering off.
Eventually, Nestl had to withdraw Maggi Macaroni completely from the market.
Nestl had not even recovered from Macaronis dismal performance, when it learnt to its
horror that Knorr had dethroned Maggi as the leader in the soup segment (end of 1997).
The only saving grace for Maggi seemed to its ketchups and sauces, which were
turning out to the rare successful extensions of Maggi. These products were supported
by a popular advertisement campaign for the Maggi Hot & Sweet sauce brand. These
humorous advertisements, featuring actors Pankaj Kapoor and Javed Jafri, used the
tagline, Its different. However, during mid-1997, HLL began promoting its Kissan range
of sauces aggressively and launched various innovative variants in the category.
Nestl responded with a higher thrust on advertising and different size packs at
different price points. Though Kissan gained market share over the next few years,
Maggi was able to hold on to its own market share. Meanwhile the operational costs of
Maggi noodles had increased considerably, forcing the company to increase the retail
price. By early 1997, the price of a single pack had reached Rs 10. Volumes were still
languishing between 13,000- 14,000 tonnes.

PRICING AND PRODUCT DEVELOPMENT:


It was at this point in time that Nestl decided to change the formulation of Maggi
noodles. The purpose was not only to infuse fresh life into the brand, but also to save
money through this new formulation. The company used new noodle-processing
technology, so that it could air-dry instead of oil-fry the noodles. The tastemakers
manufacturing process was also altered. As a result of the above initiatives, costs
reportedly came down by 12-14%. To cook the new product, consumers had to add two
cups of water instead of one-and-a-half cups. The taste of the noodles was significantly

different from what it used to be. The customer backlash that followed the launch of the
new noodles took Nestl by surprise. With volumes declining and customer complaints
increasing, the company began to work on plans to relaunch old Maggi to win back
customers. In addition, in 1998, Nestl began working out a strategy to regain Maggis
position in the soup segment. To counter the Knorr threat, the company relaunched
Maggi soups under the Maggi Rich brand in May 1998. The soups were not only
thicker in consistency than those produced earlier, the pricing was also kept competitive
and the packaging was made much more attractive. However, Knorr took Nestl by
surprise by launching one-serving soup sachets priced as low as Rs 4. HLL too
launched two-serving sachets of Kissan soup priced at Rs 7. As Maggi did not have any
offerings in this price-range, it lost a huge portion of its market share to Knorr.
The relaunch prompted market observers to compare Nestls move with US soft drinks
major Coca-Colas New Coke fiasco. However, the company disagreed, Its a hard-5
nosed strategy, that mixes nostalgia with the consumers voiced preference for the
product it has been bred and rought up on. The reintroduction is Nestls
acknowledgement of the loyalty of the Indian mother and the child to the original
product. By May 1999, Nestls decision to bring back the old Maggi seemed to have
paid off. Two months after the relaunch, the monthly average sales of Maggi noodles n
the northern region rose 50% in comparison to the previous year. In July 1999, Maggi
the brand, was promoted as the biggest brand in Nestls portfolio of brands in India,
overtaking brands such as Nestum and Cerelac. Nestl believed that Maggi had
immense potential as it was a very flexible brand under which regional variants could
be introduced to meet various market needs. Company sources claimed that with
reasonable price points and innovative products, Maggi could emerge as a top brand
and a major growth driver for the company. To further support the brand, Nestl carried
out various promotional activities as well. These included the August 1999 Fun-Dooz
campaign and Jungle Jackpot campaigns. 6 As a result of the above initiatives, Nestl
claimed to have cornered an 81% market share of the 20,000 tonnes noodles market by
the end of 1999. Nestl sources claimed that Maggi noodles outsold the competition

four times over and that more than four Maggi noodle cakes were consumed every
second in the country.

MARKET PENETRATION STRATEGY:


Maggi started with promotional campaigns in the school to see the reaction of
children after eating Maggi.
Started their advertising straight focusing on kids.
Introduced new products like atta noodles dal atta noodles cuppa mania.
Products are made available in different packages like 50,100,200,400

Gms.
Keep on conducting market research to understand changes in market.

Though Maggi has been successful every time, there were times when it faced
challenges. Some of these are:

Sales saw decline in 1990: The Company saw a decline in the sales in
1990. When the company tried to find out what the reason was, they came
to know that there was some thing wrong with the formula that spoiled the

taste. So the formula was changed from fried base to oiled dried base.
Competition increased in noodle segment: When Maggi was enjoying
being the only noodle offering by any company Top ramen entered the
market as a competition. This was a big challenge for Maggi. Though Top

Ramen couldnt do well in India.


New product launched in market but failed- Nestle decided to expand its
offerings by offering Dal atta noodles & Sambhar flavor noodles. But these
products were not welcomed by the people the very special taste of Maggi

was still ruling the consumer.


Maggi launched some new products: Ketchups, Soups, Taste makers etc.
but they were not successful.

OBJECTIVES & RESEARCH METHODOLOGY


Qualitative method will be used in the study. Qualitative method strives on
understanding data through giving emphasis on determining people words
and actions.
This project titled as mentioned involves the study of Marketing &
promotional strategy of Nestle Maggi is completed by collecting data from
the below mentioned two sourcesSources of Data collection
Primary source
The primary data used in this report include the questionnaire in which
the consumer/customer data is collected regarding their views towards
nestle maggi.
Secondary source

This will include data collection from various websites and books. It also
includes data from company and other referral sites and sources.

LIMITATION OF THE REPORT


Every attempt will be taken to obtain the error free and meaningful result but as nothing
in this world is 100% perfect I believe that there will still the chance for error on account
of following limitations(1) Respondents unavailability.
(2) Time pressure and fatigue on the part of respondents and interviewer.
(3) Courtesy bias.
(4) The project undertaken needs a lot of secondary data so the availability and
precision of this data forms the major limitation as the biasness has to be minimized.
(5) The results and conclusions of the project cannot be generalized in all area of an
organization.
(6) There was a shortage of time and resources for the functioning the operation.
(7) The data in this study is maximum taken from the primary sources .so, these data is
not fully exact.
(8) There was a hurdle in the collection of data from primary sources i.e. risky as well as
incomplete.

CHAPTER- 3
ANALYSIS & INTERPRETATION
Q 2. What comes first in your mind when you hear the word MAGGI?

Noodle

35

Fast food

10

Snacks

None of these

40
35
30
25
20
15
10
5
0
noodles

fast food

snacks

none of these

Interpretation
Out of 50 around 35 agreed that when they hear the word MAGGI first noodles comes
in their mind & 10% said fast food & other said snacks.
Q 3. What is the brand that comes to your mind when we say the word noodles?

Maggi

38

yippie

10

Topramen noodles

Anil noodles

50
45
40
35
30
25
20
15
10
5
0
maggi

top ramen

wai wai noodle

anil noodle

Interpretation
Out of 50 approx 38 % of people said when they talk about noodle maggie comes first in
their mind & 10% said yippie noodle comes in their mind & other said topramen.
Q 4. Rank the following Maggi products w.r.t frequency of purchase with being
the highest rank

Noodles

1 rank

Ketchup

2 rank

Soup

4 rank

pickles

5 rank

cubes

3 rank

Interpretation
No of customer given rank 1 to the noodles in purchase of maggi product, rank 2 to the
ketchup, rank 3 to the cubes, rank 4 to the soup & rank 5 to pickles in purchase of
maggi product.

Q 5. With what product would you associate the brand Maggi?

Ketchup

12%

Noodles

75%

Soup

10%

Masala

3%

ketchup
noodle
soup
masala

Interpretation
75% of consumer associate the noodle with brand maggi, 12% consumer associate the
ketchup, 10% consumer associate with soup & 3% associate the masala with brand
maggi.
Q 6. On a scale of 1 to 5 rate Maggi on the following parameters

Taste

Hygiene/purty

Variety/flavor

Availability

packaging

6
5
4
3
2
1
0
taste

hygiene

variety

availability

packaging

Interpretation
From the scale 1 to 5 the consumers gave 5(highest rate) to the taste & avalability, 4
rate to the hygiene/purity & packaging & 3(lower rate) to the variety & flavour. So the
company need to introduce maggi in different variety & flavour.
Q 7. Rank the categories which Maggi should look in future in order of your
importance:

Chocolate

Salted potato chips

15

Fruit juice

Processed foods

20

others

chocolate
potato chips
fruit juice
processed food
other

Interpretation
Here the consumer ranked the maggi should look in future in order their importance &
20% of people said it should be in prcessed food, 15% of people said it should be in
salted potato chips, 7% said it should be in chocolate , 3% in fruit juce & remaining said
others. So company should take the action to fulfill the consumer demand according to
their importance.
Q 8. How do you rate Maggi brand in terms of following parameters.

Expertise

Trustworthiness

Liability

None of these

6
5
4
3
2
1
0
expertise

trustworthiness

liability

none of these

Interpretation
The consumer rate the maggi in the parameters expertise, trustworthiness, liability,
none of these.they gave 5(highest) to the trustworthiness, 4 to expertise, 3 to liability &
1(lowest) to the other factores.
Q 9. How do you perceive Maggi products?

Good to health

15

Ready to eat

25

Junk food

Tasty/fun eating

tasty/fun eating

junk food

ready to eat

good to health
0

10

15

20

25

Interpretation
25% of people percieve the maggi product ready to eat, 155 of people percieve good to
health, 7% of people percieve it as junk food & 3% percieve it as tasty/fun eating.
Q 10. Which Maggi products in noodles category do you regularly buy?
(Repositioning Awareness)

Maggi masala

25

Maggi vegetable atta noodle

10

Maggi dal atta noodle

Maggi rice noodle mania

others

30
25
20
15
10
5
0

Interpretation
Out of 50 half of consumer consume maggi masala, 10 consumer consume maggi
vegetable atta noodle, 8 consume maggi rice noodle mania, 5 consumer consume dal
atta noodle& remaninig consume other. So the marketing & sale of maggi masala
noodle is more as compared to other maggi noodle.
Q 11. Do you perceive maggi noodles as a healthy product?

Yes

35

No

15

yes
no

Interpretation
Out of 100% , 75% of consumers agreed that maggi noodles is a healty product & 25%
of consumers said that maggie noodle is not a healthy product.

SWOT ANAYSIS:
STRENGTH:
Established Family Brand.
Strong Global Corporate Brand(NIL).
Specialization in food processing category marketing and distribution in
urban market.
Presence of other product segments of food category: dairy product,
chocolate, infant foods.
Pioneer and leader so mover advantage in Noodles, Sauces, Ketchups
and Soup market.
Nestle symbolization of warm, family & shelter.

Research and development division in India.


New Noodles plant in Uttranchal.

WEAKNESS:

Generic brand to Noodles in India.


Low rural market presences constraints.
Uniform brand for all food category.
Brand proliferation

OPPURTUNITIES:

Growing package and canned food market in India by15% annually.


High brand awareness of Indian consumers.
Other product category like Biscuits, Chips and ready to eat market still

unexplored.
Opportunities to be substitute to other snacks category of food
products.

THREATS:

Competitors with long history in product category Internationally like,


Heinz sauce and Ketchups of Heinz Indian, Top Ramen in Noodles and

Knorr soups.
Single product focused competitors like Heinz sauce and Wai Wai

Noodles.
Less entry barriers in the market segment for product category.
ITCs strong base in Indian market.
Substitute product to product segment.

CHAPTER 4
CONCLUSION & RECOMENDATIONS
CONCLUSION:

The food processing business in India is at a nascent stage. Currently,


only about 10% of the output is processed and consumed in packaged form thus
highlighting huge potential for expansion and growth. Traditionally, Indians believe in
consuming fresh stuff rather than packaged or frozen, but the trend is changing and
the new fast food generation is slowly changing.
Riding on the success of noodles, Nestle India, tried to make extensions of the
Maggi brand to a number of products like, sauces, ketchups, pickles, soups,
tastemakers and macaroni in the mid-1990s. Unfortunately, the macaroni and
pickles didnt pick up as expected. The soups and sauces did somewhat fine,
gathering considerable sales volumes and have a satisfactory presence even today.
Maggi Noodles itself faced a bit of difficulty with respect to taste, and nearly lost its
position in the minds of Indian consumers in the late 1990s. When Nestle changed
the formulation of its tastemaker, the ominous packet that came along with Maggi
Noodles, a major chunk of consumers were put-off and sales started dropping. Also,
Maggis competitor TopRamen took advantage of the situation and started a parallel
aggressive campaign to eat into Maggis market share. But the company quickly
realised this and went back into making the original formula coupled with a free
sampling campaign. This helped Maggi to win back its lost consumers and pushed
up its sales volumes again!
Maggi The year 2008 saw India leading in world wide Maggi sales. The brand has
grown to an estimated value of Rs 160-170 crore and contributes at least 89% to
Nestle Indias top line. All the same, some FMCG analysts feel that the brand has
not done much to expand the noodles category. Even after 25 years of its launch,
the size of the instant noodles market is yet quite small at Rs 300 crore. But yes, the
parent company, Nestle India Limited has certainly encouraged the brand to enter
into other culinary products.

RECOMMENDATION:

Foray into the other food products like chips, chocolates etc. under its sole
brand name Maggi as Maggi is a brand in itself which has been well
recognized by the masses.
Maggi should Focus on creating a product that do not need any cooking.
It should conduct promotional campaigns at schools in small towns with
population not more than 1000
It should strengthen the distribution channel of the rural areas within 100km of
all the metros.
It should launch new advertisement campaign (TV, radio, print media
commercials) with a brand ambassador or mascot

BIBILOGRAPHY
BOOKS:
GUPTA C.B., Marketing Management, Sultan Chand & Sons, 2004.

CHABRA T.N. & GROVER S.K., Marketing Management, Dhanpat


Rrai &Co.,2010.

WEB SITES:
http://www.scribd.com/doc/19730142/MAGGI-2
http://www.scribd.com/doc/36716132/21954079-Maggi-Project-Final
http://www.scribd.com/doc/13487983/The-Maggi-Brand-in-IndiaCase-Analysis
http://en.wikipedia.org/wiki/Nestle
http://en.wikipedia.org/wiki/Maggi
http://en.wikipedia.org/wiki/Fast-moving_consumer_goods