DIGITAL ASSIGNMENT – 2

NEW VENTURE PLANNING MANAGEMNET – MEE1017

Name- Ankur Wagh

Reg. No. - 16BME0586

PRODUCT- NESTLE MAGGI

AIM - The assignment aims at understanding the Marketing strategies of Nestle Maggi.
The focus of my research is the measurement of customer satisfaction provided by Nestle
Maggi. And also to know about the market position of Maggi as a Brand.

INTRODUCTION - Nestle is among the largest consumer packaged goods companies in the
world, founded and headquartered in Vevey, Switzerland. Nestlé 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 Lactée Henri Nestlé Company, which was founded in 1866
by Henri Nestlé, whose name meant "Little Nest". Today, the company operates in 86 countries
around the world and employs nearly 283,000 people.
MARKET SURVEY
Questionnaire asked for market survey-
1. Are you aware of maggi?

 Yes
 No
 Maybe

2. If yes, which flavor of Maggi do you prefer most?

 Masala Noodles
 Atta Noodles

3. Why do you prefer it?

 Flavor
 Price
 Taste
 Brand Image
4. How often do you eat Maggi?
 Very Often
 Often
 Sometimes
 Rarely
 Never

5. Which Maggi do you prefer?

 Pure Veg
 Non Veg
6. What size of pack you often buy?
 Pack of 2
 Pack of 4
 Pack of 6
 Bulk

7. Who all consume Maggi in Family?

 Children
 Elders
 Everyone

8. Do you think Maggi is famous in market?

 Yes
 No
 Maybe
9. Would you suggest others to buy Maggi?
 Yes
 No
 Maybe

10. Are you satisfied with number of flavors maggi has provided?
 Yes
 No
 Maybe
11. Maggi is considered as junk food. Should the use of maggi reduced?
 Yes
 No
 Maybe

12. How would you rate Maggi as a product?

 Excellent
 Good
 Fair
 Poor

MARKET RESEARCH

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. 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 India’s top line.
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”

STRATERGIES ADOPTED

1) Strong Customer Relations: The campaign designed by Nestlé for Maggi’s silver jubilee
hopes to work on the brand’s strong consumer connect through television, the Internet and
print. The jingle gets a prominent play in the television campaign. Nestlé, India’s 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.

2) 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.

3) 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. The turning point came in 2005.
All over the country, atta is considered healthier than maida or refined flour which the company
was using from day one. It was then that it added the tagline, health bhi, taste bhi (health as
well as taste).
4) Price Incentives: The Company is taking no chances and is extending its distribution reach
to smaller towns and cities. Maggi happens to be Nestlé’s most widely distributed brand in the
country. Through independent channels, it reaches those villages where the company has no
presence. This is also the time that Maggi’s value-for-money pack priced at Rs 5 is expected
to come handy. (The regular pack comes for Rs 10.)

5) 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.

PRICING AND PRODUCT DEVELOPEMENT

It was at this point in time that Nestlé 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 tastemaker’s manufacturing process was also altered.
As a result of the above initiatives, costs reportedly came down by 12-14%.
From the introductory level it has kept low price as it always had a median income scale
People as its customer segment. So its policy in pricing was always concentrated for the
customer’s affordability. Even though the prices were low, the brand was able to maintain a
constant rate of profit as their volume in the product didn’t vary too much until the inflation
in which they reduced the quantity by 5 gram for the same price. Though with high quantity
and cheap price, this made a huge impact on the customers as other brands low price didn't
offer the similar volume. It has never changed its price with a huge scale and has always kept
it normal within the customer reach

CONCLUSION

Maggi went through all the stages of product life cycle starting from introductory stage in the
year 1982 with no competition and high cost. Increasing demand placed it in the growth stage
from 1985 after that when it reached the peak sales with low production cost and high profit
it went into the maturity stage. The controversies and ban sent Maggi to the decline stage
which afterwards again went up by the Maggi re-launch in India as customers demanded it
more. So, even with lots of competition and ban it manages to stay in consumers mind and is
now a convenience product.