RESEARCH REPORT

ON

NESTLE MAGGI SALES ANALYSIS IN INDIAN COMPETITIVE

MARKET

Submitted in partial fulfillment of the requirements for the award of BBA degree

Submitted by

MR. Mohd Kashif Salam

BBA

Batch : 2015 – 2018

Roll No.: 150241163

Under the Guidance Of

Professor Chhavi Jain

SCHOOL OF BUSINESS STUDIES

SHARDA UNIVERSITY, GREATER NOIDA-201306

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ACKNOWLEDGEMENT

I would like to thank Professor Chhavi Jain who gave the opportunity to make this project
through which we have gained valuable information on the topic “NESTLE MAGGI
SALES ANALYSIS IN INDIAN COMPETITIVE MARKET

I would also like to thank all my friends for helping and making the project successful.
These acknowledgements are one way where I can actually thank the people who have been
instrumental in the making of this project. With their help the project was done with ease.
We would like to thank a lot of people without whose co-operation and support working on
this project would not have been so pleasurable and interesting.

Name: Mohd Kashif Salam Date: 09/04/2018

Place: New Delhi Signature:

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 PREFACE
In the present scenario marketing and sales is major challenge for every industry either
professional or unprofessional. And it is no surprise that sales analysis is a tough concept to
understand. Sales analysis examines sales reports to see what goods and services have and
have not sold well. The analysis is used to determine how to stock inventory, how to measure
the effectiveness of a sales force, how to set manufacturing capacity and to see how the
company is performing against its goals.

The project report consists of detailed study of “NESTLE MAGGI SALES ANALYSIS IN
INDIAN COMPETITIVE MARKET’’. A sincere effort has been made to analyze pattern of
the company and sales of the companies too.

The report further provides information regarding company all the relevant information,
products provides by them, which facilitate buyers effectively. It is very important that sales
professionals who know about the market and able to communicate with the targeted
customers should sell the products. In the millennium, all these activities would play a crucial
role in the overall development and maturity of the organization.

I hope that the project report work made by me will be of great help to get the comprehensive
knowledge of the maggi and its products sales.

ii

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 CHAPTERS PAGE NO.

Chapter-1 1-34
1. INTRODUCTION TO THE PROJECT
2. OBJECTIVES OF THE PROJECT
3. SALES ANALYSIS REPORTS
4. COMPANY PROFILE
5. PRODUCTS OF NESTLE
6. EARNINGS OF NESTLE
7. JOINT VENTURES
8. INDUSTRY PROFILE
9. INTRODUCTION TO MAGGI
10. MAJOR COMPETITORS OF NESTLE MAGGI
11.PRODUCTS OF MAGGI
35-37
12. MAGGI BAN AND BACK TO MARKET AGAIN
13. NESTLE MAGGI SALES IN INDIA
38-39
Chapter-2
1. LITERATURE REVIEWS
Chapter-3 40-46

1. RESEARCH METHODOLOGY:
47-54
Chapter-4
1. ANALYSIS & INTERPRETATION
Chapter-5
1. FINDINGS
2. RECOMMENDATIONS
3. LIMITATION OF THE REPORT
4. CONCLUSION
5.BIBLIOGRAPHY
6. REFRENCES
7. APPENDIX

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 CHAPTER –I

1. INTRODUCTION TO THE PROJECT:

The Project entitled ― “NESTLE MAGGI SALES ANALYSIS IN INDIAN
COMPETITIVE MARKET” deals with the study of the Maggi sales and its all the
components with competitors in 2nd largest populated country of the world that is also
biggest diversified country in respect of religions and cultures shares by different - different
communities and societies, urban and rural areas, very rich and poor people, educated and
uneducated and which is also youngest country in the world with more 65% of youth in it.
Maggi launched in India in theyear 1983, by Nestle India Limited, which became
synonymous with noodles. Mainly,this project studies the sales and competitors of the
products in the same category and strategies that are adopted by NestleIndia Limited for
Maggi over the years. And also, to know about the market 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.
Maggi sales Analysis taken as the research topic because Indian people specially youth like
us are the habitual and love to eat Maggi as snacks or quick food. So, I decided to take it as a
research report topic to know the its market value and sales in respect of competitors with in
the same category.

2. OBJECTIVES OF THE PROJECT:

To Understand Sales Strategies adopted byNestle Maggi.
To understand the brand performance of Maggi product.
To understand Maggi consumers, Brand Quality perceived by customers,Brand Credibility,
consideration, superiority.
Brand value of Maggi in terms of product diversity.
To study the all the Maggi competitors and how their products are similar as well as different
in taste and quality.
To know the effect on sales before and after the Maggi banded case.
To enhance the knowledge in respect of Maggi and its products
To know the potential market for new entrance of the products in the same categories.
What is future of quick food market?

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3. SALES ANALYSIS REPORTS:
A sales analysis report shows the trends that occur in a company's sales volume over time. In
its most basic form, a sales analysis report shows whether sales are increasing or declining.
At any time during the fiscal year, sales managers may analyze the trends in the report to
determine the best course of action. Managers often use sales analysis reports to identify
market opportunities and areas where they could increase volume. For instance, a customer
may show a history of increased sales during certain periods. This data can be used to ask for
additional business during these peak periods.

i) Actual Sales
A sales analysis report shows a company's actual sales for a specified period -- a quarter, a
year, or any time frame that managers feel is significant. In larger corporations, sales analysis
reports may only contain data for a subsidiary, division or region. A small-business manager
may be more interested in breaking sales down by location or product. Some small,
specialized businesses with a single location are compact enough to use general sales data. A
sales analysis report may compare actual sales to projected sales.

ii) New vs. Repeat Sales

Vendors who design sales reports for other companies may offer to analyze new versus repeat
business. A sales analysis can include the percentage of revenue coming from these different
customer groups, and this type of breakdown might be useful for managers who want to
know if they're retaining business. A new versus repeat analysis is also useful in measuring
the effectiveness of new advertising, new products and the deliberate targeting of new
customer segments.

iii) Product Demand

One of the trends that a sales analysis report can reveal is whether there's a problem with
product demand. A long-term decline in sales for a single product may indicate several
problems. The competition could be eroding market share, or other products sold by the same
company may be doing the same. A long-term decline may mean that it's time to stop selling
the product or revamp the brand. In some cases, a decline can reveal that customers' needs are
changing. Managers could rebrand or repackage the product for a new purpose or a new
target market.

iv) Estimates
In some industries, such as residential real estate, a sales analysis report is used to estimate
market prices. Characteristics or features of a product may determine its market value, based
on what the market has paid in the past. For example, specific features of a home may cause
it to increase or decrease in value. Such features include the number of bedrooms, square
footage, fireplaces and swimming pools. In other lines of business, this same principle can be
applied to a product's raw materials, brand name or reputation.

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3.1 Define Sales Analysis:
Sales analysis examines sales reports to see what goods and services have and have not sold
well. The analysis is used to determine how to stock inventory, how to measure the
effectiveness of a sales force, how to set manufacturing capacity and to see how the company
is performing against its goals.

A) Period Comparisons:Usually a sales analysis will compare one-time period to a

comparable period in the past. For example, clothing retailers might want to examine how
their back-to-school sales did compared with last year. They might take a look at this year's
sales from Aug. 1 through Labor Day and then compare those numbers to the same period a
year ago. Other companies look at month-over-month sales, or sales this month compared
with the same month last year, or some other time period, depending on the nature of the
business.

B) Break-Even Analysis:Break-even analysis shows a company what minimum level of

sales is needed to make sure it does not lose money. It also shows how sensitive the break-
even point is to changes in both fixed and variable expenses.

C) Competitor Sales Analysis:In some industries, sales made by your competitors are listed
in public sources. For example, automobile sales are reported monthly by major
manufacturer, major brand and model. This sales data is informative for all manufacturers,
showing how well each competes against the rest. For example, data are routinely examined
to see which automobile company sold the most midsized sedans, SUVs and trucks.

D) Context for a Sales Analysis:The raw year-over-year numbers or percentage increases or

decreases in sales are typically paired with additional explanatory notes in the sales analysis.
For example, the automotive manufacturer that reports a large year-over-year increase in
sales for one of its midsized sedans could have just introduced a new sedan that is stealing
sales from other manufacturers. Or back-to-school sales for retailers may be down compared
with last year because of a recession. The sales analysis needs context to be fully understood
by all who will use it.

E) Sales Analysis Review: Any sales analysis needs to be shared with members of the
company who can benefit from having the knowledge. The sales force needs to be aware of
how it is doing against its goals, finance needs to be able to analyze the company pricing
strategy and its impact on sales, and manufacturing needs to be able to plan capacity. Sharing
the sales analysis works best if it is done in regularly scheduled meetings where people can
ask questions, share information and plan accordingly for the next sales cycle.

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3.2 Sales Analysis Techniques:

Analyzing sales results typically involves examines sales data, such as sales closed per
month, to understand and improve to overall performance. Use the data and compare with
previous data to make good business decisions. Analyzing sales helps your business as whole
and your sales professionals specifically align performance with strategic objectives and
market trends.

1. Calculate your net working capital turnover by dividing net sales by your average working
capital. A low ratio could indicate inefficiencies in your organization. A high level could
mean that you use too much capital.

2. Calculate sales growth by subtracting sales revenue for the last year from the current year
and divide that by the sales revenue from last year. Multiply that by 100 to get the sale
growth percentage. Determine if your business is growing, declining or remaining flat and
take action to remedy any problems. For example, if sales for a particular product decline
consistently for three years, consider implementing an end-of-life strategy for the product so
you can focus on other efforts.

3. Determine an affordable growth rate by dividing your company’s net income by last year’s
earnings and multiply that by 100. If your sales growth exceeds your affordable growth rate,
you may need to allocate additional assets and inventory to sustain growth.

4. Calculate your break-even percentage by dividing gross profit by total expenses and
multiplying by 100. The results reveal what sales you require to break even, neither make a
profit or lose money. Use this ratio to identify actions necessary to increase sales in order
impact profits.

5. Create a mind map to examine strengths and weaknesses in your sales strategies. For
example, write one of your strengths, such as experienced sales force, in the center of a page.
Draw a circle around it. Draw lines out from the circle and label them with reasons why you

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have been successful in the past. Use this technique to help and your sales force learn from
your experiences and remedy shortcomings.

6. Locate competitive data from your competitor’s websites, or Hoovers or Dun & Bradstreet,
to assess your company’s market share. Look for sales patterns and trends, such as seasonal
variations, random events and cyclical patterns. Adjust your sales strategies to accommodate
and exploit these opportunities.

7. Get customer feedback regarding recent sales. Run focus groups with selected individuals
to learn more about their personal experiences with buying your products. Conduct online
surveys to get information you can use in forecasting future sales figures.

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4. COMPANY PROFILE
Nestlé S.A.is among the largest consumer packaged goods companies in the world, founded
and headquartered in Vevey, Switzerland. Nestlé originated in a1905 merger of the Anglo-
Swiss Milk Company, which was established in 1866 by brothers George Page and Charles
Page, and the FarineLactée Henri Nestlé Company, which was founded in 1866 by Henri
Nestlé, 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.

4.1 HISTORY OF NESTLE:

The company dates to 1867, when two separate Swiss enterprises were founded that would
later form the core of Nestlé. 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 Nestlé developed a milk-based baby food and soon
began marketing it. Henri Nestlé retired in 1875, but the company, under new ownership,
retained his name as FarineLactée Henri Nestlé.

Henri Nestlé.

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In 1877 Anglo-Swiss added milk-based baby foods to its products, and in the following year
the Nestlé company added condensed milk, so that the firms became direct and fierce rivals.

In 1905 the companies merged to become the Nestlé and Anglo-Swiss Condensed Milk
Company, retaining that name until 1947, when the name Nestlé 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 company’s 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, Nestlé's production had more than doubled.

After the war, government contracts dried up and consumers switched back to fresh milk.
However, Nestlé's management responded quickly, streamlining operations and reducing
debt. The 1920s saw Nestlé's first expansion into new products, with chocolate the company's
second most important activity.

Nestlé's logo used until 1970s.

Nestlé 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, Nescafé, which was a staple drink of the US military. Nestlé's production and
sales rose in the wartime economy.

The end of World War II was the beginning of a dynamic phase for Nestlé. 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'Oréal in 1974. In 1977,
Nestlé made its second venture outside the food industry by acquiring Alcon Laboratories
Inc.

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In 1984, Nestlé'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 Nestlé.

The first half of the 1990s proved to be favorable for Nestlé: 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,
Nestlé 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, Nestlé 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 Nestlé 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, Nestlé 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 Nestlé bought baby food manufacturer Gerber for $5.5 billion.

In December 2007 Nestlé entered in a strategic partnership with a Belgian chocolate maker
Pierre Marcolini.Nestlé 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
world’s largest eye-care company.

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5. PRODUCTS OF NESTLE:
Nestlé has 8,000 brands, with a wide range of products across a number of markets including
coffee (Nescafé), 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.

6. EARNINGS OF NESTLE:
In 2017, consolidated sales were CHF 89.6 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 foodproducts, 18% from
ready-prepared dishes and ready-cooked dishes, 12% fromchocolate, 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.

7. JOINT VENTURES:
Nestlé holds 26.4% of the shares of L’Oréal, the world's largest company in cosmetics and
beauty. The Laboratories Inneov is a joint venture in nutritional cosmetics between Nestlé
and L’Oréal, and Galderma a joint venture in dermatology with L’Oréal. Others include
Cereal Partners Worldwide with General Mills, Beverage Partners Worldwide with Coca-
Cola, and Dairy Partners Americas with Fonterra.

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8. 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$ 49 billion in 2016 which is the largest
growingsector in the economy. The FMCG market is set to double from USD 49 billion in
2016 to USD 103 billion in 2020. FMCG sector will witness more than 60 per cent growth in
rural and semi-urban India by 2020. Indian consumer goods market is expected to reach
$3600 billion by 2020.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), Nestlé 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

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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 2017.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.

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9. INTRODUCTION TO MAGGI:
Maggi is a Nestlébrand of instant soups, stocks, bouillon cubes, ketchups, sauces, seasonings
and instant noodles. The original company came into existence in 1872 in Switzerland, when
Julius Maggi took over his father's mill. It quickly became a pioneer of industrial food
production, aiming at improving the nutritional intake of worker families. It was the first to
bring protein-rich legume meal to the market, which was followed by ready-made soup based
on legume meal in 1886. In 1897, Julius Maggi founded the company Maggi GmbH in the
German town of Singen where it is still established today.

Maggi Comes to India – teething troubles Maggi noodles was launched in India in the
early1980s. Carlo M. Donati, the present Chairman and Managing Director of Nestle India
Ltd, brought the instant noodle brand to India during his short stint here in the early eighties.
At that time, there was no direct competition. The first competition came from the ready-to-
eat snack segment which included snacks like samosas, biscuits or maybe peanuts, that were
usually ‘the bought out’ type. The second competition came from the homemade snacks like
pakoras or sandwiches. So there were no specific buy and make snack! Moreover both
competitors had certain drawbacks in comparison. Snacks like samosas are usually bought
out, and outside food is generally considered unhygienic and unhealthy. The other
competitor, ‘homemade’ snacks overcame both these problems but had the disadvantage of
extended preparation time at home. Maggi was positioned as the only hygienic home made
snack! Despite this, Nestlé faced difficulties with their sales after the initial phase. The reason
being, the positioning of the product with the wrong target group. Nestle had positioned
Maggi as a convenience food product aimed at the target group of working women who
hardly found any time for cooking. Unfortunately this could not hold the product for very
long. In the course of many market researches and surveys, the firm found that children were
the biggest consumers of Maggi noodles. Quickly they repositioned it towards the kids
segment with various tools of sales promotion like colour pencils, sketch pens, fun books,
Maggi clubs which worked wonders for the brand.

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Maggi was positioned as ‘2-minute noodles’ with a punch line that said ‘Fast to cook! Good
to eat!’ And this gave the implied understanding to the consumer that it was a ‘between
meals’ snack. The company could have easily positioned the product as a meal, either lunch
or dinner. But, it chose not to do so, because the Indian consumer mindset did not accept
anything other than rice or roti as a meal. Hence trying to substitute it with noodles would
have been futile. The firm did not position it as a ‘ready-to-eat’ meal either, as the housewife
prefers to ‘make’ a meal for her kids rather than buy it for them. And if she can make it in
two minutes with very little effort, then obviously it’s a hit with her! What’s more, if kids
also love the taste, the product is as good as sold! So the ‘2-minute’ funda coupled with the
‘yummy taste worked!

9.1 BRAND STORY:

Launched in 5 flavors initially – Masala, chicken, Capsicum, sweet & sour, and Lasagna –
Maggi had to fight hard to be accepted by Indian consumers with their hard-to-change eating
habits. The packaged food market was very small at this time, Nestle had to promote noodles
as a concept, before it could promote Maggi as a brand. It therefore devised a two-pronged
strategy to attract mothers on the ‘convenience’ plank and lure kids on the ‘fun’ plank.
Gradually, the market for instant noodles began to grow. The company also decided to focus
on promotions to increase the brand awareness. In the initial years, Nestle promotional
activities for Maggi included schemes offering gifts( such as toys and utensils) in return for
empty noodles pack.

According to analysits the focus on promotion turned out to be the single largest factor
responisible for Maggi’s rapid acceptance. Nestle\’s Managers utilized promotions as
measured to meet their sales target. Gradually, sales promotion became a crutch for Maggi
noodles sales. Later many of the Maggi’s extensions also made considerable use of
promotional schemes. The focus of all Maggi’s extensions was more on below the line
activities rather than direct communication. In addition to promotional activities, Maggi
associated itself with main stream television programme and advertised heavily on kids
programme and channels. After its advertisements with taglines like “mummy bhookhlagihai,
bas do minute” and fast to cook good to eat Maggi’s popularity became highly attributed to

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its “extremely high appeal to children”. As a result, Maggi’s annual growth reportedly
touched 15% during its initial years.

10. 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 Foodies, 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.

Baba Ramdev launched the much awaited ‘Patanjali Atta Noodles’, a new range of
product in ‘instant noodles’category. Ramdev’s ‘Patanjali Ayurveda’ with its new product
hopes to capture the market which was lost by Maggi. Patanjali noodles will use rice-bran oil
and not cheap and inferior palm oil as used by others, the company release said. Patanjali
noodles will be available at Rs. 15, whereas, other noodles too are available in different
prices and sizes. As per my knowledge, none of the branded noodles are manufactured in
palm oil. Baba Ramdev has said that the noodles “will be made from whole wheat flour
(atta), not like noodles of other companies which are made up of maida and has only 10 per
cent atta”. Baba was more interested in attacking other products in the market than launching
his own product. However and whatever the ‘health-maker’ in Baba Ramdev’s instant
noodles may be but ‘taste-maker’ used in Maggi will never be replaced by any products.
Patanjali claims that their noodle does not have lead or taste enhancer monosodium glutamate
(MSG).

The noodles contain no lead or MSG. “Jhat pat pakao, aurbefikr khao” is the catchline of
the Patanjali noodles. Baba Ramdev also hinted at a range of baby products, he plans to
launch next. Another product Patanjali plans to introduce sometime soon is Powervita, a
health drink for children that will compete with brands like Complan, Horlicks and

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Bournvita. The Baba Ramdev -owned Patanjali group had a turnover of Rs. 1200 crores in
2014 and a projected turnover of Rs. 2000 crores in 2015.

In the meantime, Maggi might be back in the market setting the sales through e-commerce on
fire, but the legal troubles for Maggi seem to worsen with the Centre backing the Maharashtra
government decision to challenge the Bombay High Court order in the Supreme Court. The
Maharashtra government had been mulling over a challenge to lifting of ban on Maggi. After
clean chit by HC appointed labs, Nestle re-launched Maggi on Nov 9. Maggi comes back
with flash sale on Snapdeal. A question is bound to come up about Government’s motive,
intention and if there was a conspiracy behind first raising objection, then banning and then
re-launch and then challenging the comeback. All this is happening to give boost to Babaji’s
noodles? All laboratories that conducted earlier tests approved the product. According to the
test reports, there was no question of doubting veracity of reports on lead, MSG content. Due
to fast cooking properties; instant noodles today have occupied an important position in
almost every Indian kitchen. Since most of the women in urban India are working, instant
noodles and ready-to-eat foods are slowly and steadily replacing the traditional rice and
pulses.

Maggi is favourite among all the children in the country; noodles have come a long way since
their introduction in 1983. Consumed in almost every Indian household (prior to the lead and
MSG controversy), Maggi, which was initially considered as a snack, had taken the place of a
staple diet in many Indian homes. Owing to the fast paced lives today, packaged and ready-
to-eat foods are gaining quite a formidable share in the Indian food market.

However, according to market experts, Nestle India’s Maggi noodles, which has been
dominating the instant noodles market in India for nearly three decades, is currently
witnessing tough competition with a number of new entrants such as SunfeastYippee!,
Hindustan Unilever’s (HUL) Knorr Soupy Noodles, Top Ramen and Ching’s Secret.

Maggi is a product of Nestle India, a subsidiary of the Nestle Group of Switzerland. It goes
without saying that Nestle India’s Maggi is still undoubtedly the top noodle brand in India.

In 2015, Maggi got entangled in a major controversy when a few samples of Maggi were
tested and found ‘unsafe and hazardous’ for human consumption. The tests concluded that

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Maggi contained much higher levels of monosodium glutamate (MSG) and lead than what
was permissible. The findings of the tests were followed by bans on Maggi in many states
across and outside India. Though, Nestle denied the allegations that Maggi was ‘unsafe and
hazardous’ to human health, it pulled back all the stocks from across the country.

Another popular noodle brand in India is SunfeastYippee!, which belongs to the Indian
conglomerate ITC. Yippee made its way into the Indian market in the first decade of the
2000s and gradually made a considerable presence. By the early 2010s, Yippee! had started
giving market leader Maggi some sort of competition. Yippee! Noodles are available in five
different variants; namely, Classic Masala, Magic Masala, Chinese Masala, Tricolor Pasta
(Creamy Corn) and Tricolor Pasta (Masala).

Top Ramen, by Nissin, is another leading noodle brand in India. Nissin is a Japanese
company that introduced its first noodle product in 1958 but entered the Indian market 30
years later in 1988. It took a while for Top Ramen to become one of the leading noodle
brands in India. Different variants of Top Ramen noodles in India include Atta Noodles, Cup
Noodles, Curry Veg Noodles, Oats Noodles, Scoopies Short Noodles and Super Noodles.

Ching’s Secret is a product of Capital Food Indian Limited. Another brand of noodles in
India produced by Capital Food India Limited is Smith & Jones. But Ching’s Secret is the
more popular one and is giving stiff competition to the top noodle brands in India. Ching’s
Secret offers a vast range of products to its customers that include Schezwan Instant Noodles,
Singapore Curry Instant Noodles, Hot Garlic Instant Noodles, Egg Hakka Noodles and Veg
Hakka Noodles.

Knorr Soupy Noodles is a product of Hindustan Unilever and has turned out to be a
popular brand in India of late. Knorr is famous for its unique range of soups in India and is
the leading brand for the same but has earned accolades for its unique combination of noodles
and soup, that is, Knorr Soupy Noodles. Knorr noodles range consists of Mast Masala Soupy

20
Noodles, Knorr Chinese Noodle Hot Spicy, Knorr Chinese Noodle Schezwan, Chinese
Noodles and Fried Rice.

Now, it’s interesting to see who the actual buyers of Baba’s product will be and how those
noodles going to make its way in the market.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 well-entrenched
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."

21
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.

Maggi has certainly been the leading brand in the noodle industry for decades .But there are
other brands as well which have given close competition to Maggi in the past and in the
present as well.

MAGGI VS TOP RAMEN: Top Ramen is the second largest Noodles brand in India trying
hard for the past 18 years to beat Maggi Noodles. Top Ramen is a global brand from Nissin.
Launched in 1991, Top Ramen has been trying all possible marketing tools to dethrone
Maggi.

First occasion was when the brand was launched, the brand quickly went into limelight with
its famous positioning as Smoodles. But after the initial trying, people again went back to
Maggi noodles.

The next occasion was when Maggi changed the taste. That was an occasion where, as a
brand loyalist , people dumped Maggi .For a while people consumed Top Ramen. When
Maggi reversed the taste, many people again switched back.

Top Ramen at that point of time was one of the heavy advertisers in the media. And since the
taste was also comparable, many Maggi users may have switched to this brand. But it could
not retain all the customers . One factor is the price. Top Ramen was always perceived as a
22
premium brand compared to the affordable Maggi. The high price may have prompted many
Maggi users to switch back.

Another factor was the promotion. Top Ramen could not sustain the share of mind it
generated during the formative years. Maggi was able to bring in lot of noise because it had
become an umbrella brand and was advertising for various other products.

Top Ramen had an interesting distribution strategy. For the past 10 years, the brand has been
distributed by Marico. It is a case of marketing alliance where Top Ramen was utilizing the
distribution strength of Marico. In 2008, the alliance was mutually called-off. Now Nissin is
building its own distribution network.

It is puzzling to see that a global brand with lot of support from its parent could not put up a
big fight with Maggi .The major issue faced by Top Ramen was the differentiation. Top
Ramen could not offer any serious differentiation to Maggi either in terms of the product or
brand. Since there was no serious differentiation, Maggi was able to gain back the lost ground
because it was the pioneer brand who built the category. Top Ramen also lost out when
Maggi repositioned itself in the health platform.

Top Ramen had its share of innovations. This brand is credited with innovating a new
category of cup-noodles in Indian market. The difference between cup noodles and instant
noodles is that cup-noodles need not be cooked, it is ready to eat just after adding hot water
into it.

Top Ramen currently holds more than 90 % share in the cup-noodles market. Maggi has
recently entered the cup-noodles market with its brand Cuppa- Mania. It is expected that the
entry of new players will expand the category.

Unlike instant noodles where the brands are targeting kids, Cup-Noodles is targeting adults.
The segment aimed by Top-Ramen is 16-35 .

Top Ramen is also credited with the launch of curry-noodles in India. While ordinary noodles
are dry, curry noodles have both gravy. Top Ramen to many people is heavily associated with
Curry Noodles and that is one of the reasons why many people did not buy the brand.

23
So the brand has not been remaining dormant. It has been doing the right things in the market
but somehow the brand is not able to manage the perception among the consumers. It is in the
promotion front that Top Ramen has failed to make an impact.

When Maggi repositioned itself as a healthy food, Top Ramen should have followed suit
since the market was moving towards healthy foods. When Maggi launched its rice noodles,
Top Ramen should have followed since it could have added value to the brand.

Except for the first phase of brand promotion, Top Ramen did not have any worthwhile
campaign in its 18 years of existence. Hence as a customer, the brand is not giving enough
reasons to change the addiction to Maggi brand. Even it is not giving enough reasons for kids
to buy this brand.

MAGGI VS YIPPEE NOODLES: ITC has always taken a very aggressive approach from
the day it entered the FMCG sector and has been giving a very tough fight to the already
established players because of the financial muscle that it has and the wider and deeper reach
that ITC has got even in the rural markets because of its tobacco business. This always
provides it an edge even over the established players in the market as not many players in
India have got such a deep and a wider reach for making the products available to customers
in almost every nook and corner in India.

And ITC has taken the same approach for the newly launched noodles brand Sunfeast Yippee
in the Indian market, which is dominated by Maggi from decades. Recently, this product
category has also seen a lot of activity with the launch of many new brands like Horlick’s
Foodles by Glaxo Smithkline India, Knorr from HUL, Ching’s secret by Capital Foods Ltd,
Tasty Treat by Future Group, etc. These players have been fighting out the competitive
battles to get the most of the instant noodles market of the around Rs. 1300 crore and which
is growing continuously at around 17-20 percent growth rate. All these players are giving
Maggi a tough fight and are eating out into the almost 70 percent market share that Maggi has
got in this market (Source – Business Standard).

And one interesting thing is that all the players in this product category are coming with a
completely different positioning in the market, with GSK focusing on projecting the noodles
as a healthy snack option and even HUL focusing on the soupy noodles as a positioning for

24
their brands. And ITC has also taken the same approach by focusing its noodles brand
Sunfeast Yippee as a brand using the benefit positioning concept in which they tried to
position the product as a better alternative to Maggi on the basis of following three
differentiating criteria :-

1 - The first point used by Yippee to position itself as a better alternative over Maggi was
that it was telling the customers that they should have the choice of variety of masala with
two variants in their product portfolio – Classic and Magic. The stress was made upon the
point that we want choices in each and everything in life so why not have a choice while
having instant noodles.

2 – The second point focused on the shape of the contents within the pack. The contents in
other options available are in rectangular shape which have to be broken which leads to short
pieces of noodles, whereas in Yippee noodle pack the cake is in round shape which keeps the
noodles intact and long and smooth.

3 – Then third thing that it focuses upon is the fact that Maggi must be had immediately after
it is cooked as after sometime the taste deteriorates and you cannot have it, whereas Yippee
noodles promises that they can even be had after some time.

Thus it has tried to give itself a totally different positioning from the other competitors
present in the market and it is the only competitor to Maggi which has decided to take it head
on while competing with it.

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11.PRODUCTS OF MAGGI:

11.1 NOODLES:

a) 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

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b) MAGGI VEGETABLE ATTA NOODLES:An offering that exemplifies ‘Taste
Bhi Health Bhi’, MAGGI Vegetable Atta Noodles is tasty because it is loaded with
everyone’s favourite MAGGI ‘Masala’ and healthy because it now has more real vegetables
and is packed with the power of fiber.

MAGGI VEGETABLE ATTA NOODLES

d) MAGGI CUPPA MANIA:Each offering of MAGGI Noodles has been developed

keeping in mind the Indian palate and what you like. Since in today’s 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

11.2 SOUPS:

a) 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

27
Development efforts of Nestlé 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:

i. Healthy Style

 Rich Tomato
 Mixed Vegetable
 Creamy Chicken
 Masala Noodles

ii) Chinese Style

 Hot & Sour Vegetable

 Corn Vegetable
 Sweet Corn Chicken
 Oriental Thai Noodles

iii) Chef Style

 Cream of Mushroom
 Tangy Tomato Vegetable
 Sweet n Sour Tomato Noodles
 Palak Corn

b) 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.

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 MAGGI SOUPS

11.3 SAUCES:

a) 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 -

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 MAGGI SAUCES

b) 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

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11.4 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

11.5 COOKING AIDS:

a) 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 it’s so easy to use!

b) MAGGI BHUNA MASALA:MAGGI is revolutionizing the Indian kitchen with its latest
offering – MAGGI Bhuna Masala. It is any mother’s 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

31
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.)

c) 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.

d) 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.

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e) 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

12. MAGGI BAN AND BACK TO MARKET AGAIN:

12.2 The 'Lead' and 'MSG' Controversy in Maggi and its side effects

A major controversy broke out in late May-early June 2015 pertaining to various Maggi
products available in the Indian market. It was discovered in some of the tests conducted on
Maggi noodles that it contained more quantity of MSG (monosodium glutamate) and lead
than what is permissible by the World Health Organization (WHO) and the Food Safety and
Standards Authority of India (FSSAI). The controversy started from Uttar Pradesh where a
few samples were collected by the Food Safety and Drug Administration (FSDA) and sent to
Kolkata for scrutiny. The samples were found containing high quantity of lead and MSG. UP

33
was followed by Delhi where 10 out of the 13 samples failed the tests and the product was
pronounced 'hazardous' and 'unhealthy' for humans.

The Delhi government was the first one to slap a ban on Maggi products, though just for 15
days for the time being. Soon after, various other Indian states followed Delhi by having
conducted a number of tests over various Maggi products and almost all of them banned the
marketing, storage and sale of Maggi. Some of the other states where Maggi is banned are
Gujarat, Kerala, Uttarakhand, Jammu and Kashmir, Tamil Nadu, Assam and Uttar Pradesh. A
few foreign countries have also put a stop to the import of Maggi from India. Nepal and
Singapore were the first two countries to ban the import of Maggi from India following the
revelations.

On the other hand, some of the renowned Indian celebrities also found themselves caught in
the midst of controversy as several states proposed to penalize those who endorsed and
promoted Maggi. Noted Bollywood actors like Amitabh Bachchan, Madhuri Dixit and
PreityZinta were the prime figures who had a sword of Damocles hanging over their heads.
Meanwhile, the Swiss conglomerate Nestlé, the manufacturer of Maggi, recalled its stocks
from the stores in several states as was directed by the respective state governments but kept
denying the results of the tests, saying that Maggi was safe.

On 5 June 2015, Nestle's Global CEO Paul Bulcke held a formal press conference in New
Delhi and reiterated what the company had already been maintaining that Maggi was safe.
Bulcke let the media persons know that Nestlé was recalling its stocks just because the public
trust was shaken due to some 'unfounded conclusions'. Bulcke though assured his cooperation
to the Indian authorities by sharing testing methodologies with them. Bulcke promised to win
back the trust of the consumer and bring the most popular noodle brand back to the shelves.
Meanwhile the FSSAI ordered that all the nine Maggi variants be recalled from the stores and
termed them 'hazardous and unsafe' for human consumption.

34
13. NESTLE MAGGI SALES IN INDIA:
Swiss packaged food company Nestle SA has finally joined the Rs10,000 crore sales club in
India—more than a century after it entered the burgeoning market to sell Swiss condensed
milk as a trader.

On Wednesday, its local entity Nestle India Ltd reported total sales at Rs10,135.11 crore for
the year ended December 2017. The maker of Maggi noodles, Kit Kat chocolates and
Nescafe instant coffee mixes follows a January-December accounting year.

35
Nestle, which began trading in India in 1912, is the first listed “pure-play food company” to
cross Rs10,000 crore in sales in India. While there are many packaged goods companies in
India with more than Rs10,000 crore sales, Nestle India is among the very few to have
crossed the mark with a pure-play food business. Among the listed firms, ITC Ltd’s food
business was estimated at around Rs8,000 crore in fiscal year ended 31 March 2017 (FY17)
and Britannia Industries Ltd reported sales at Rs8,684 crore in FY17. The country’s largest
packaged goods company Hindustan Unilever Ltd and New Delhi-based Dabur India Ltd
have much smaller food businesses.

Among unlisted firms, Amul brand marketer Gujarat Co-operative Milk Marketing
Federation Ltd’s revenue stood at Rs27,043 crore in FY17, according to a company statement
issued last year. Biscuit maker Parle Products Pvt. Ltd reported Rs9,331.42 crore revenue
from operations in FY16, according to its filings with Registrar of Companies (RoC).

“It is extremely pleasing that we ended year 2017 on a strong note by reaching a historic
milestone of over Rs10,000 crore in revenue, in a year where we had to adapt to significant
changes in the external environment,” Suresh Narayanan, chairman and managing director,
Nestle India said in a statement on Wednesday.

Nestle India may well have crossed the Rs10,000 crore mark in sales a couple of years back,
had its Maggi noodles not been slapped with a ban in 2015 over a health scare that caused an
estimated half-a-billion-dollar dent to the company.

For the year 2014, Nestle India reported total sales at Rs9,854.84 crore. But sales dropped to
Rs8,175.31 crore in 2015 after the Maggi noodles controversy. On 5 June 2015, India’s food
regulator Food Safety and Standards Authority of India (FSSAI) asked Nestle to take Maggi
instant noodles, its single largest revenue earner at the time, off retail shelves for alleged

36
presence of monosodium glutamate and lead beyond permissible limits. Maggi was off retail
stores for six months.

For the quarter ended 31 December, Nestle India reported a 59.6% jump in net profit, backed
by higher volume. Profit for the quarter stood at Rs311.83 crore, as compared with Rs195.41
crore in the corresponding year-ago period.

Total sales increased 10.9% in the quarter to Rs2,589.64 crore. Sales in the domestic market
rose 10.8% and export sales increased by 12.7%. On a comparable basis, Nestle India said,
sales in the domestic market increased by 18.1% due to “increase in volumes including
rebuild of Maggi noodles, supplemented by better underlying realizations coming from
previous periods”.

According to the company, growth was on a base that was “impacted by withdrawal of high
denomination currency notes in circulation” in 2016. “These growth rates are adversely
impacted due to lower reported sales by the change in structure of indirect taxes and
reduction in realisations to pass on the GST (goods and services tax) benefits,” Nestle India
added.

For the full year, Nestle India’s total sales increased by 7.7% to Rs10,369.10 crore in 2017
backed by an 8.2% growth in domestic sales. Adjusting for accounting changes following the
rollout of the goods and services tax, Nestle India said, the domestic sales growth is estimated
at 11.8%.

“Nestlé is over a 105-year-old in India and is building for the next 100 years. This is
showcased by our continuous thrust on innovation and renovation with over 15 products
launched last year,” Narayanan said.

During the October-December quarter, the country’s largest packaged goods company
Hindustan Unilever Ltd (HUL) reported a 28% rise in net profit as sales rose 2.5% backed by
an 11% growth in volume. Dabur India posted a 13% increase in net profit backed by a 13%
volume growth.

37
On Wednesday, Nestle India shares rose 1.73%, or Rs123.60, to Rs7,260.10 while
benchmark Sensex shed 0.42%, or 144.52 points, to end the day at 34,155.95 points. The
results were announced after the close of trading.

38
39
CHAPTER-2

1. LITERATURE REVIEW:

1.1 INTERNATIONAL REVIEWS:

1.1.1 Essays, UK. (November 2013). Essay on Maggi. Retrieved from

http://www.ukessays.com/essays/marketing/maggi-noodles-is-manufactured-by-nestle-
marketing-essay.php?vref=1

"In the last 20 years we have Just asked 2 minutes of your time". The Brand which clearly
comes to mind on first recall is Maggi Noodles. Maggi Noodles is manufactured by Nestle
under instant noodles portfolio. It was introduced with Maggi 2 Minute Noodles in India in
1982 when the only place to get noodles was Chinese restaurants. Maggi has undoubtedly has
been the lifeline of many teenagers when in home or away from home. Maggi, as a brand, has
seen many competitions in its Lifecycle. The brand has also diversified itself with launch of
product ranges like soups, tomato sauce, seasoning, cup noodles, various flavours of maggi
noodles like atta, rice, mized grains etc. Nestle remains its market leader position with
59.84% of retail sales in India,2009 (Source: Euromonitor International). But its market share
is constantly eroded by new entrants like GlaxoSmithKline Consumer Health with
Foodles,Capital Foods with Smith&Jones Instant noodles, HUL launching its Soupy Noodles
under Knorr Brand umbrella.

1.1.2. US FDA clears Nestle's Maggi noodles

The US regulator, after conducting tests to detect lead in the noodles, found it to
be safe for human consumption
The US is the seventh country to declare Maggi noodles non-hazardous for
consumption.Since the issue of presence of higher than permissible levels of lead (more than
2.5 parts per million) had surfaced in May, the food regulator in India and Nestle have been
at loggerheads. Currently, litigation is underway at the high court in Mumbai over the issue
on June 5 of a country-wide recall of all variants of Maggi by the Food Safety and Standards
Authority of India.

And, the Union ministry of consumer affairs, food & public distribution has filed a class
action suit against Nestle India, claiming Rs 640 crore in damages, for alleged unfair

40
tradepractices and sale of defective goods. It has been filed before the National Consumer
Disputes Redressal Commission, "on behalf of the large number of consumers of Maggi in
the country", the department of consumer affairs said on Wednesday.

1.1.3. Instant Noodles Industry in United Arab Emirates (UAE):

Analysis of Growth, Trends and Forecast (2017 - 2022)
The study elucidates the situation of UAE and predicts the growth of its Instant Noodles
Market. Report talks about growth, market trends, progress, challenges, opportunities,
government regulations, technologies in use, growth forecast, major companies, upcoming
companies and projects etc. in the Instant Noodles Sector of UAE. In addition to it, the report
also talks about economic conditions of and future forecast of its current economic scenario
and effect of its current policy changes in to its economy, reasons and implications on the
growth of this sector.

1.2NATIONAL (INDIAN) REVIEWS:

1.2.1“A STUDY NESTLE IN INDIA WITH & WITHOUT MAGGI”

Maggi, a well reputed brand, is known to all. Even a small child can easily pronounce its
name at a shop to buy it. It has become the favourite snack of most of the population of India.
Maggi is the great contributor to the revenue of Nestle India Ltd., a subsidiary of a Swiss
company. Maggi gained publicity because if its remained in publicity for its taste. If we recall
Maggi is in popularity but because of different reasons, it is bringing negative publicity to the
product because of presence of monosodium glutamate (MSG) and excessive limit of lead in
its products as per the guide line of FSSAI (Food Safety Standards Authority of India). This
has shattered the trust of the consumers completely. As a result of this Maggi was banned In
India for five months which has resulted to a huge loss of Maggi in India. The brand value
has drop down and as a result the Bse and sensex of Nestle Maggi noodle also drop down.
The assessment shows the damage done by it to Nestle and how agin Nestle has announced a
re launch of Maggi.

41
1.2.2A RESEARCH PAPER ON THE MAGGI MUDDLE CASE AND ITS
IMPACT ON THE PSYCHE OF THE INDIAN CONSUMERS:

This paper covers the massacre that Maggi went through in 2015. It studies the effects of the
crisis on the psyche of its target audience, specifically falling in the age group of 18-24 years,
and the change in their buying behaviour. Reports say that after re-launch Maggi is leading
the Instant Noodles Category, but whether it will be able to capture back its old market share
of atleast75% (with respect to the above mentioned target group) is what this research work
aims to find.

1.2.3.Maggi noodles growth rate slows even as Nestle introduces new

flavours:

Nestle India's Maggi noodles has gained back substantial market share since its relaunch last
year. Maggi noodles, once the market leader in its category, was taken off shelves in 2015
after a health hazard clarion call by Food Safety and Standards Authority of India (FSSAI).

Since its comeback in 2016, Maggi noodles has clawed back to its position and now holds
60% of the instant noodles market as against 80% before the ban.

However, Maggi noodles' growth rate is now slowing.

Between January to March of 2017, Nestle India's net profit rose 6.76% to Rs 306.76 crore,
while total sales were up nearly 10%, at Rs 2,591.90 crore.

Nestle India said, “The net sale growth was on the back of domestic sales which increased by
9.7% mainly due to rise in volumes, including rebuild of Maggi Noodles, supplemented by
marginally better realisation mostly from carrying over pricing.”

Abhijeet Kundu, analyst at Antique Stock Broking Limited said, “Maggi post-relaunch after
the ban has been able to grow their market share but at slower pace, which was witnessed in
the current quarter's domestic sales growth.”

Since the re-launch, Maggi had a total of 12 variants selling in India which included Hot
Heads category, classic masala, tomato chicken, atta noodles and oats noodles.

As recent as in May, to cement its position further, Nestle introduced four new flavours of
Maggi noodles -- Amritsari Achari, MumbaiyaChatak, Super Chennai and Bengali Jhaal.

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CHAPTER-3

1. 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.

Population Size: this survey was conducted on 180 people from different parts
of Delhi NCR and Uttar Pradesh in India respectively.

This project titled as mentioned involves the study of Salesand Competitors of

Nestle Maggi is completed by collecting data from the below mentioned two
sources-

1.1 Sources of Data collection

1.1.2 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.

1.1.2.1 Objective of Questionnaire

 To understand the influence of Maggi as a brand on consumers mind set.

 To know the sales of maggi through buying behavior
 And to know the people love even after the ban of maggi in India
 To understand the performance of Maggi products.
 To understand preferenceImagery, Quality perceived by customers, and taste
preference.

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  To know the people’s choice of maggi over other competitors in the same market and
same categories of products.
 To understand the competitors performance and sales.

1.2Secondary source

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

1.2.1 Information Areas:

The objective as spelt out can be elaborated into specific information areas to be
studied.

 How do customers perceive Maggi as a stable brand, their perception of noodles and
how do they associate themselves with Maggi?
 Are the consumers aware of Maggi Brand or they associate noodles with some other
brand?
 Which product from the entire basket of Maggi products do the consumers consider
as the best selling product for Maggi and to which the consumers frequently buy?
 Are the consumers willing to accept Maggi brand after banded and back to market.

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CHAPTER-4

1. ANALYSIS & INTERPRETATION

This was done in geographic areas delhi NCR and different parts of Uttar Pradesh in India on
male and female of different age groups on 180 people and deeply analysed for that results
are following with interpretation.

1.WHICH AGE GROUP DO YOU BELONG?

180 RESPONSES

upto 12 years 13-25 years 26-40 years 41 and above

41 and above
upto 12 years
18%
23%

26-40 years
26%
13-25 years
33%

Interpretation:this survey done on different age groups people respectively. Most of the
respondents are youth and teenagers, because India is also considerd as the youngest country
in the world having highest percantage of youth.

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Interpretation:almost every one knows about maggi and almost 40-50% are knew maggi
from a very long time. There are very few respondent who do not intrested in maggi and its
products.

Interoretation:most of the people out of the respondents do prefer to have maggi noodles
out of all the maggi products after pazzta and very few prefer only sauce.

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Interpretation:maggi is known for its taste and people almost responded in favour of that
option and some peole also given the ther unique answers like esasy to cook and qucik
cookinf time etc.

Interpretation :most of the people known about maggi banded in 2015 and also know
about the reason behind it. Only few peole don’t know about it unfortunetly.

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Interpretation: this the maggi’s consumer love towards maggi even after
banded once but when it came back into the market people accepted it with the
same enthusiastic level.

Interpretation: there are few people who are frequntly consuming maggi and 38% do
consume 2-3 times a week, and almost 20% people consume once a month, and there are also
few people who eat maggi once a while do to certain reasons.

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Interpretation:once this question people acted very very differently about the healthyness
of the maggi. One fourth peole spoken in the favour and half are confused and you can say
they are not sure about and only 20% think it is not healthy at all although it is considerable
percentage.

Interpretation:on a sacle of 1-5 most of the peole give 3 on the all 5 factors and less then
between 20-40 given 5 out of 5.

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Interpretation:almost every one like maggi out of 180 respondents because it very clear
from the graph that between 7-8 consist the huge number of people.

Interpretation:maggi masala noodles is the biggest choice of the people and there still
people who love every thing.

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Interpretation: maggi noodles are almost famous every where and it the reason reasonthat
why people link maggi and noodles together and fast food too that is it all about its tagline.

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CHAPTER-5

1. FINDINGS:
The major findings during the data collection and analysis time can be summed up as
follows:

 Maggi and its products are doing goodin Indian competitive market which a lot of
competition. Even maggi was banded in India due to certain quality taste issue but people
loved it even it came back to the market again after few months.
 Maggi seems more reliable and tasty and true love of Indian.
 The maggi banded case hardly impacted the sales of maggi in the market due the preference
and brand name in the market from more than 3 decades.
 Maggi is preferring by every age group of people either urban or rural areas individuals.

2. RECOMMENDATIONS:
 Maggi products are not completely hygienic and liable this is still consumers
prospective even after 3 decades in the country. Maggi is more considered as quick or
fast food rather hygienic.
 Maggi noodles are available in many varies but people know about very few. So, they
need to work on their awareness and advertisements and for sales promotion
strategies.
 Maggi banded case affected the maggi market. So, they should work on enhancement
of the sales.

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3. 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) Respondent’s 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 secondary sources .so, these data is
fully exact.

(8) There was a hurdle in the collection of data from primary sources i.e. risky as well as
incomplete.

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4. 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 didn’t 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, Maggi’s competitor ‘TopRamen’ took advantage of the situation and started a parallel
aggressive campaign to eat into Maggi’s 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 8–9% to Nestle India’s top
line. All the same, some FMCG analysts feel that the brand has not done much to expand the
noodles category. Even after 35 years of its launch, the size of the instant noodles market is
yet quite small But yes, the parent company, Nestle India Limited has certainly encouraged
the brand to enter into other culinary products.

Sales of maggi was affected by the banded of maggi in 2015 but the are getting back there
consumer trust again and try to do every thing for sales.

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5.BIBLIOGRAPHY:

1. Books

Author : SCHWARTZ Mathew, Smart Calling: Eliminate the Fear, Failure, and Rejection
from Cold Calling by Art Sobczak

Book by F McQuarrie Edward ,The market research toolbox

2. Internet Sites:

www. Nestle. Com

www.nestle.in

www.maggi.com

www.maggi.in

www.wikipedia.com

www.scribd.com

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6. REFRENCES:
http://www.zeebiz.com/companies/news-maggi-noodles-growth-rate-slows-even-as-nestle-
introduces-new-flavours-16631

https://www.google.co.in/search?biw=1366&bih=662&ei=pQfLWvzjHcntvgSn7o24DQ&q=
maggi+europe&oq=maggi+europe&gs_l=psy-
ab.3..0j0i22i30k1l5.20645.25208.0.27839.17.15.0.0.0.0.730.2254.0j1j4-
2j1j1.5.0....0...1c.1.64.psy-ab..13.4.1845...35i39k1j0i67k1j0i20i263k1.0.SD_XuXUC2P4

https://www.google.co.in/search?q=maggi+noodles+usa&sa=X&ved=0ahUKEwjgkJeKxqza
AhXBLo8KHfSACDsQ1QIIggEoAg&biw=1366&bih=662

http://www.studymode.com/essays/Maggi-Noodles-1874353.html

https://business.mapsofindia.com/food-industry/fast-food/maggi.html

http://www.business-standard.com/article/companies/us-fda-clears-nestle-s-maggi-noodles-
115081200750_1.html

http://www.ukessays.com/essays/marketing/maggi-noodles-is-manufactured-by-
nestlemarketing-essay.php?vref=1

http://udgamvigyati.org/admin/images/A%20Study%20Nestle%20In%20India%20With%20
&%20Without%20Maggi-%20Ms%20Manvi%20Sharma%20Sood.pdf

https://www.scribd.com/document/326025538/A-RESEARCH-PAPER-ON-THE-MAGGI-
MUDDLE-CASE-AND-ITS-IMPACT-ON-THE-PSYCHE-OF-THE-INDIAN-
CONSUMERS-18-TO-24-YEARS

http://www.zeebiz.com/companies/news-maggi-noodles-growth-rate-slows-even-as-nestle-
introduces-new-flavours-16631

https://www.livemint.com/Companies/1JKHsutTXLWtTcVwdIDg0H/The-Maggi-ban-How-
Indias-favourite-twominute-noodles-lost.html

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7. APPENDIX

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