Dissertation report

“ANALYSIS OF MARKETING STRATEGIES OF

NESTLE MAGGI”

Submitted by

DEBASIS SAHOO
MC 18-11
M.COM(2018-20)

Under the Guidance of

SWARNALATA NAYAK
Lecturer
P.G. Department of commerce
Baba Bhairabananda (Autonomous) Mahavidyalaya
Chandikhole , jajpur

Submitted for the Partial Fulfillment of the Requirements for the Degree of
Master of Commerce

BABA BHAIRABANANDA (AUTONOMOUS) MAHAVIDYALAYA CHANDIKHOL , JAJPUR

(755044)
 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, it’s 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.

(Debasis Sahoo)

MC18-11
 CERTIFICATE OF THE GUIDE

This is to certify that the dissertation report entitle “ANALYSIS OF MARKETING

STRATEGIES OF NESTLE MAGGI” submitted by DEBASIS SAHOO bearing the Roll no-
MC18-11 is his own work and has been carried out under my supervision. It is
recommended that the candidate may now be evaluated for his dissertation work by the
college.

DATE: (SWARNALATA NAYAK)

PLACE:Chandikhol Signature:
 DECLARATION

I Debasis Sahoo, Roll No. MC18-11, hereby declare that this Project Report titled “ANALYSIS
OF MARKETING AND PROMOTIONAL STRATEGIES OF NESTLE MAGGI” submitted
by me to Baba Bhairabananda(Autonomous) Mahavidyalaya , Chandikhole is a bonafide work
undertaken by me and has not been submitted to any other University or Institution for the award of
any degree diploma / certificate or published any time before.

Debasis sahoo

Roll No.MC18-11

M.COM Final Year

 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
Introduction to the report 01
Company profile 02-50
Review of literature
Objective & scope of report
Methodology
Limitation

2. Analysis & interpretation 51-65

STP Analysis
SWOT Analysis

3. Conclusion & recommendation 66-67

Annexure

• Questionnaire 68-71
• Bibliography 72
 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.

1
 COMPANY PROFILE

INTRODUCTION TO NESTLE:

Nestlé S.A. 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". 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 Nestlé. In the succeeding decades the two competing

2
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 Farine Lactée Henri Nestlé.

Henri Nestlé.

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

3
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.

4
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.

5
 ➢ PRODUCTS OF NESTLE:
Nestlé has 6,000 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.

➢ 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:

Nestlé holds 26.4% of the shares of L’Oreal, the world's largest company in cosmetics and
beauty. The Laboratories Inneov is a joint venture in nutritional cosmetics between Nestlé and
L’Oreal, and Galderma a joint venture in dermatology with L’Oreal. Others

6
include Cereal Partners Worldwide with General Mills, Beverage Partners Worldwide with
Coca-Cola, and Dairy Partners Americas with Fonterra.

7
 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.

8
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 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.

9
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.

10
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."

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."

11
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.

12
 INTRODUCTION

HISTORY OF MAGGI – INDIA:

Nestlé India Ltd. (NIL), the Indian subsidiary of the global FMCG major, Nestlé 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

13
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 Nestlé 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 Nescafé (NIL's coffee products brand) as the company's core
brand. Nescafé 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 Nescafé, 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 Nestlé 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 Nestlé products to make them healthier,
and to develop new health and wellness products. Since the early 2000s, the Nestlé Group had
been introducing 'health and wellness

14
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 it’s 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.

15
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.

16
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 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 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-and- convenience platform
through the 80s and early 90s, started facing the heat from Indo Nissin’s Top Ramen brand
around 1995. The latter began pushing forward aggressively on a combination of taste variants,
smart audience segmentation and Shahrukh Khan’s brand endorsement.

Nestle promptly re-jigged its offering with a new taste - which didn’t go down well with the
consumer. In 1999, Maggi was relaunched with its original taste, and sustained

17
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

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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

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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

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

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 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 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:

▪ Healthy Style

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 - 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.

22
 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.

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 - 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.

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 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

25
 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 it’s so easy to use!

26
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 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

27
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.

28
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

29
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 Nestlé’s 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 Maggi’s 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 - RETAILER –

CONSUMER

30
 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.

31
 • 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

32
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.

33
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.

34
 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.

35
 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”

36
MATURITY:

Declining sales growth.

Saturated market.
Extending product line.
Large promotional offers.
Entrance of new players - During the period of 90’s 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 1990’s – 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.

37
 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.

38
 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 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

39
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 Nestlé 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 Nestlé General Manager (food business) Shivani Hegde
insists that the product never ran the

40
 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 Nestlé 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 Nestlé 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, Nestlé 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 Nestlé’s 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 Maggi’s 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

41
 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 consumer’s bond with Maggi. The company is doing“360 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,”

MAGGI’S BRAND EXTENSION:

In 1998, Nestle launched Maggi’s 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 Maggi’s brand name, and was never very serious about
the segment.

42
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. Maggi’s 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 Maggi’s 4 the company started
rethinking its strategies towards the soup market.

In order to stretch Maggi’s 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 Nestlé seemed to be particularly bad at dealing with
traditional Indian product categories. Maggi noodles

43
performed badly in 1996. Despite slow sales in the previous two years, Nestlé had set a sales
target of 25,000 tonnes for the year. However, Maggi couldn’t cross even 14,000 tonnes. Adding
to the company woes was the failure of Maggi Tonite’s 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, Nestlé 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,
Nestlé 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 Macaroni’s launch was backed by a multi-media advertisement
campaign including radio, television, outdoors and print media with the tagline, ‘Tum Roz Baby.

The product’s 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,
Nestlé 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

44
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, Nestlé had to withdraw
Maggi Macaroni completely from the market.

Nestlé had not even recovered from Macaroni’s 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, ‘It’s different.’ However, during mid-
1997, HLL began promoting its Kissan range of sauces aggressively and launched various
innovative variants in the category.

Nestlé 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.

45
 PRICING AND PRODUCT DEVELOPMENT:

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%. 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 Nestlé 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, Nestlé began working out a strategy to regain Maggi’s 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 Nestlé 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 Nestlé’s move with US soft drinks major
Coca-Cola’s ‘New Coke’ fiasco. However, the company disagreed, “It’s a hard-5 nosed strategy,
that mixes nostalgia with the consumer’s voiced preference for the product it has been bred and
rought up on. The reintroduction is Nestlé’s acknowledgement of the loyalty of the Indian
mother and the child to the original product.” By May 1999, Nestlé’s decision to bring back the
‘old Maggi’ seemed to have

46
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 Nestlé’s portfolio of brands in India, overtaking brands
such as Nestum and Cerelac. Nestlé 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, Nestlé 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,
Nestlé claimed to have cornered an 81% market share of the 20,000 tonnes noodles market by
the end of 1999. Nestlé 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.

47
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 couldn’t 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.

48
 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 sources-

Sources 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.

49
 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 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.

50
 CHAPTER- 3

ANALYSIS & INTERPRETATION

Q 2. What comes first in your mind when you hear the word MAGGI?

Noodle 35
Fast food 10
Snacks 5
None of these 0

4
0

3
5

3
0

2
5

2
0

1
5

1 noodle fast snack none of

0 s food s these

51
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 2
Anil noodles 0

52
 50
40
30
20
10
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

53
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%

54
 ketchu
p
noodle
soup
masal
a

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

55
Taste 5
Hygiene/purty 4
Variety/flavor 3
Availability 5
packaging 4

0
tast hygien variet availabilit packagin
e e y y g

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.

56
Q 7. Rank the categories which Maggi should look in future in order of your
importance:

Chocolate 7
Salted potato chips 15
Fruit juice 3
Processed foods 20
others 5

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

57
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 4
Trustworthiness 5
Liability 3
None of these 1

0
expertis trustworthines liability none of
e s these

58
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 3
Tasty/fun eating 7

tasty/fun
eating

junk
food

ready to
eat

good to
health
0 5 1 1 2 2
0 5 0 5

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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 5
Maggi rice noodle mania 8
others 2

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 3
0

2
5

2
0

1
5

1
0

0
maggi masala maggi vegetable maggi dal maggi other
atta rice s
atta

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

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 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.

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STP ANALYSIS:

SEGMENTATION:
Market Segmentation divides the heterogeneous market into
homogenous groups of customers who share a similar set of needs/wants and could be
satisfied by specific products. Maggi Brand have segmented the market on the basis
of lifestyle and habits of URBAN FAMILIES.

TARGET:
Market Targeting refers to evaluating and deciding from amongst the
various alternatives, which segment can be satisfied best by the company. The Maggi
Brand have mainly targeted the Kids, Youth, Office Goers & Working Woman which
falls into the category of “convenience –savvy time misers” who would like to get
something instant and be over with it quickly.

POSITIONING:
Market Positioning is the act of designing the company’s offerings and
image to occupy a distinctive place in the minds of the target market. The goal of
positioning is to locate the brand in the minds of consumers to maximise the potential
benefit to the firm. Maggi has positioned itself in the SNACKS category and not in
the meal category since Indians do not consider noodles as a proper food item.
Therefore Maggi have developed its brand image of instant food products with
positioning statements such as “2 minutes noodles ” and “Easy to cook, good to eat”.

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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.

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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.
• ITC’s strong base in Indian market.
• Substitute product to product segment.

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 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 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!

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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 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

ANNEXURE

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 QUESIONNAIRE

Q 1. What product would you associate with the tag line mentioned below?

➢ Its different……………………………………………….
➢ Don’t be a noodle, be a snoodle…………………………………………
➢ 2 minute noodles/bas 2 minute…………………………………………
➢ Jitna tasty, utna healthy……………………………………………
➢ Mummy bhook lagi h……………………………………………
➢ Try it with a twist…………………………………………..
➢ Hearty soup warm you from inside………………………………………….
➢ Fast to cook, good to eat………………………………………………..

Q 2. What comes first in your mind when you hear the word MAGGI?

➢ Noodles
➢ Fast Food
➢ Snacks
➢ None of these

Q 3. What is the brand that comes to your mind when we say the word noodles?

➢ Maggi
➢ Top Ramen
➢ Wai Wai Noodles

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 ➢ Anil Noodles

Q 4. Rank the following Maggi products w.r.t frequenct of purchase with being the
highest rank

➢ Noodles
➢ Ketchup
➢ Soup
➢ Pickles
➢ Cubes

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

➢ Ketchup
➢ Noodles
➢ Soup
➢ Masala

Q 6. On a scale of 1 to 5 rate Maggi on the following parameters

➢ Taste
➢ Hygiene /Purity
➢ Variety/Flavors
➢ Availability
➢ Packaging

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Q 7. Rank the categories which Maggi should look in future in order of your
importance:

➢ Chocolates
➢ Salted potato chips

➢ Fruit juices
➢ Processed foods(ready to use pastes and masalas)
➢ Others(please mention)

Q 8. How do you rate Maggi brand in terms of following parameters Q 9.

How do you perceive Maggi products?

➢ Good to health
➢ Ready to eat
➢ Junk food
➢ Tasty/fun eating

Q 10. Which Maggi products in noodles category do you regularly buy?

(Repositioning Awareness)

➢ Maggi masala
➢ Maggi vegetable atta noodles
➢ Maggi dal atta noodles
➢ Maggi rice noodle mania
➢ Others

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Q 11. Do you perceive maggi noodles as a healthy product?

➢ Yes
➢ No

71
 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://en.wikipedia.org/wiki/Nestle
http://en.wikipedia.org/wiki/Maggi
http://en.wikipedia.org/wiki/Fast-moving_consumer_goods

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