ANALYSIS OF MARKETING STRATEGIES:

NESTLE INDIA LIMITED (MAGGI)

UNDER THE GUIDANCE OF: SUBMITTED TO:

PROF. DHRUVA CHAK PROF.DHRUVA CHAK
(ACADEMIC MENTOR)

1
 INDEX

Acknowledgment 3

Executive Summary 4

Introduction of Nestle & Maggi Noodles 5

Marketing Mix 5-6

Segmentation, Targeting and Positioning (STP) 6-7

Market Share & Growth 8

Competitor Analysis 9-10

SWOT 10

Customer Analysis & Survey 11

Conclusion & Recommendations 12

Learning Experience 12

References 13
 ACKNOWLEDGMENT

The report on “ANALYSIS OF MARKETING STRATEGIES- NESTLE

MAGGI NOODLES” is an outcome of guidance, moral support and
devotion bestowed on us by Professor Dhruva Chak throughout our
work. Also, we acknowledge and express our profound sense of
gratitude to everyone who has been a constant source of inspiration.

We offer sincere vote of thanks with innate humility to our team

members, who were there and provided help whenever needed.
 EXECUTIVE SUMMARY

The report entitles analysis of marketing strategies of Maggi

Noodles. Maggi Noodles was launched by Nestle India Limited in
India in 1982. Since then Maggi has been the top selling noodle
brand in India. It always has been market leader, having more than
50% share. Maggi is promoted as a household brand which is easy to
cook. Since long it has been following the tagline of “BAS 2
MINUTE”. The project targets apprehension of the Marketing
strategies of Nestle Maggi noodles. Research has stated clearly that
winning a new customer is costlier than to maintain an existing one.
The best- known way to retain and satisfy the customer than to
exceed his expectations. For this it is important to know the
satisfaction level of customers.

The focus of our research was the measurement of customer

satisfaction given by Nestle Maggi noodles. There is no better
opportunity to interact with the external as well as the internal
customers of an organization. For executing one of our objectives
which is analysing consumer’s buying behaviour towards Maggi
products we have prepared a separate questionnaire for the
customers for analysing their behaviour towards Maggi. Finally, the
results of the research verify the fact that the “2-minute Maggi” is
the most preferred product and it has the great brand loyalty.
 INTRODUCTION

Henri Nestle founded Nestle in 1866. Later in 1905 Nestle merged with Anglo-Swiss Milk
Company. Nestle headquarter is in Vevey, Switzerland. The motto of Maggi noodles is to
enhance quality of life and contribute to healthy life. It has more than 2000 brands
worldwide. It deals in various products such as dairy products, baby food, breakfast cereals,
coffee and tea, confectionery, frozen food, and snacks. Nestle markets its products in over
190 countries.
Nestle came to India in 1912 as The NESTLÉ Anglo-Swiss Condensed Milk Company (Export)
Limited. Nestle India has 8 manufacturing units and 4 branch offices in India. It recorded a
sale of ₹ 122,953 million in FY19. As the government’s emphasis was on having local
production facilities, in 1961, Nestle had its Indian subsidiary and at its first factory in Moga.
Its 9th and newest MAGGI noodle factory in Sanand, Gujarat.

INTRODUCTION OF MAGGI NOODLES

Maggi is one of the best-known brands of Nestle. People address it as “MERI MAGGI”. It’s
tagline is “2 MINUTE NOODLES”. Maggi’s original owner was Julius Michael Johannes Maggi
in Switzerland. Nestle acquired maggi in 1947. Maggi’s mission is to master the goodness of
home cooking, renewing its global product portfolio with ingredients that people are
familiar with, like those they might find in their kitchen cupboard. Nestle launched Maggi in
India in 1982 around 33 years ago.Nestle first launched the traditional flavour - masala
maggi followed by chicken and tomato flavours and later by curry flavour.

MARKETING MIX

Marketing Mix is the study of the brand/company which covers 4Ps (Product, Price, Place,
Promotion) and describes the marketing strategy of the company.
Marketing strategy assists companies achieve business goals & objectives, and marketing
mix (4Ps) helps marketing planning and its execution.

The marketing mix strategy of Maggi noodles is explained below:

Product:
Maggi is one of the most well-known and driving food brands from Nestlé. Maggi has
presented a wide scope of items according to the taste and inclination of the purchaser. The
other variants of Maggi noodle are 2-minute noodles, Atta noodles Chicken noodles, Cuppa
Mania, Hot Heads noodles, Oats noodles Vegetable Multigrainz noodles. Maggi 2 Minute
Noodles is the flagship & the most demanded product under the umbrella brand of Maggi.
These products are a hit and remained upon the expectation for the purchaser.
Price:
Maggi noodles utilizes the cost-based technique to tap in various market segments. At first
Maggi noodles kept the low pricing strategy in light of the fact that most of the customers
belong to the average middle-class group yet with the volumes that it produces, Maggi
noodles had the option to generate profits. With evolving situations, Maggi noodles has
scaled down the quantity and expanded its cost. As Maggi noodles is trying to tap into all
sections of society it keeps differential costs in depending areas and across nations.
Likewise, its contributions are accessible in a wide variety of packages so individuals can
purchase as indicated by their necessities. New range of packs like Cuppa noodles and hot
heads are sectioned towards a higher income group with a higher cost.

Place:
Maggi noodles has a very well-established distribution network due to the strong presence
of Nestle. The distribution strategy followed by Maggi noodles follow the chain from
Producers to Distributors to Wholesalers to Retailers and then finally to the end users i.e
Consumers. Maggi noodles has its own factory where the manufacturing takes place. The
products are directly shipped from the factories to various warehouses and then products
are passed on to the Wholesalers. Wholesalers then distribute Maggi noodles to retailers
and events to end users. Maggi noodles has its strong base in rural areas and small towns
too which has positioned it at the top position. The distribution channel of Maggi noodles is
the backbone for its success.

Promotion:
Maggi noodles promotional methodology significantly centres around creating awareness
and "brand awareness" For a very long-time old tagline of "BAS 2 MINUTE" ends up being
the most brilliant of all. This slogan ended up being a gigantic promoter and stamped its
route in the instant food market. In all its campaigns, since the year 1982, Maggi noodles
has been advertised as "2-MINUTE NOODLES”. Maggi noodles also advertise based on the
market segment; they use different age groups of people for advertising its different
products. For ex. They demonstrated grandfather eating Maggi noodles in promoting the
new dal atta noodles. Maggi noodles additionally centres around famous celebrities notably
Amitabh Bachchan and Madhuri Dixit for brand endorsements.

SEGMENTATION, TARGETING AND POSITIONING

SEGMENTATION TARGETING POSITIONING

Kids / Teenagers / Families Small children Fast to Cook

Buying Behaviour Students living away from home Huge variety of flavours

Convenience of lifestyle. Working professionals “Taste bhi health bhi”

Urban and rural Youngsters who found it difficult Available in all price range
to cook. ₹5 - ₹188.
SEGMENTATION:
Market Segmentation divides the diverse market into the same kind of groups basically the
customer who share a similar set of needs/wants and which can be satisfied with identical
kind of product. Maggi Brand has segmented the market on the basis of buying preferences/
age / lifestyle and geographic area. They formed this segmentation according to the Indian
customers and brought into the market well prepared and checked as their last market
segmentation was a great failure in the Indian market and they soon realised it and changed
the whole segmentation. The market was segmented into following:
1. Buying behaviour
2. Convenience of lifestyle
3. Urban and rural
4. Kids / teenagers / family (Focus was mainly on age and buying behaviour of the above
segments)

TARGETING:
Market Targeting basically means to evaluate and decide the best from various alternatives,
that which segment of the market can be satisfied by them. Main focus of Maggi Noodles
was on the kids, Youth, office goers & Students living away from home and working people
who comes under the category of “convenience- Savvy time misers” who don’t have much
time and they want something which can be made instantly and easily. The taglines were
made by keeping this in mind that their target customers focus on quick and easy cooking –
their main taglines were - like “MUMMY, BHOOKH LAGI HAI”,”BAS 2 MINUTE”. They were
easy to remember and people started saying “2 minutes vali Maggi” they were successful in
their main agenda.

POSITIONING:
Market Positioning is the act of designing the company’s offerings and image and occupies 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 maximize the potential benefit to the firm. Maggi
noodles has positioned itself in the snack’s category and not in the meal category since
Indians do not consider noodles as a proper food item. Maggi noodles positioned their
product with the well-known slogan “TASTE BHI HEALTH BHI”. Positioning Maggi noodles as
a product to get fast relief from hunger and the price range of Maggi noodles is for all the
classes because the base price of just ₹5, so every class in the society can purchase it.
 MARKET GROWTH & SHARE

Nestle India was experiencing a compound annual growth (CAGR) of 15.7% from 2010 to
2014 and the year 2015, the year of crisis for MAGGI noodles which resulted in a 17% year
on year drop in the annual revenue to ₹ 8175 crore. But as John F Kennedy said “In a crisis,
be aware of the danger- but recognise the opportunity.” So, Nestle India took the
inspiration from that and showed a constant growth since 2015 at a CAGR of 24%

MARKET SHARE

Nestle Maggi noodles has a market share of 60% and contributes around one-third of the
total sales of the company, while Yippee is the second largest brand and has a market share
of 22%. Maggi noodles used to dominate this market pre crisis; it had a market share of
75%.
 COMPETITION ANALYSIS

In spite of the fact that huge FMCG organizations like ITC, GSK Consumer Healthcare and
Hindustan Unilever have dispatched their own brands of moment noodles throughout the
long term, as have a few retailers under their private labels, a survey carried out by the
National Council of Applied Economic Research had named Maggi noodles the country’s
most valued FMCG brand. Maggi has certainly been the leading brand in the noodle
industry for decades. However, there are different brands too which have given close rivalry
to Maggi noodles in the past and in the present also like Top Ramen is the second biggest
Noodles brand in India making a decent attempt for as far back as 18 years to beat Maggi
Noodles. Moreover, there are many of them attempting to assume Maggi noodles position
— Nissin Foods' GSK's Foodles, Sunfeast's Yippee, Ching's scope of noodles, Knorr's Soupy
Noodles, Future Group's Tasty Treat lastly the cup noodle lord Wai (Chaudhary Group). The
major problem faced by other brands is that they could not offer any serious differentiation
to Maggi noodles either in terms of the product or brand. Since there was no serious
differentiation, Maggi noodles was able to gain back the lost ground even after the 2015
crisis because it was the pioneer brand who built the category. Competitors also lost out
when Maggi noodles positioned itself in the health platform.

COMPETITION BASES

1. Smart marketing
2. Competitive pricing
3. Effective communication
4. Product innovation

Convenience was the USP of Maggi noodles when it was launched in 1984. Unexpectedly,
purchasers got something that was cleanly packed and easy to prepare. It was additionally
the first combination experiment on food in Quite a while. Moment noodles were an
altogether new classification in the nation, yet it was given an Indian curve. Maggi noodles
came in four variations: Masala, chicken, sweet and sour, and capsicum. Of these, two have
endured — Masala and chicken, which sells generally in the eastern states. Masala noodles
keep on being the leader flavor. In the days that followed, it explored different avenues
regarding more variations, similar to a garlic-onion free one for Gujarat. In 2005, Nestle
came out with Maggi atta noodles (entire wheat flour) instant noodles. As in India atta is
considered healthier than maida or refined flour so with this it placed itself in the health
area too. It was then that it included the slogan, "HEALTH BHI TASTE BHI". This situation
gave Nestle the stage to dispatch more items under the Maggi brand. It previously had
Maggi soups, sauces and coconut milk in the market, however, given the solid value of the
brand, Nestle could now extend it to more newer classes.

Competitors struggled to launch a rival to Maggi noodles but their experts could not
develop something different from the Maggi noodle flavours. Whenever there's any hint of
rivalry warming up, Nestle dispatched rice noodles focused at purchasers in the east and
south, where rice is a staple food.
To give tough competition, Nestle started Maggi noodles distribution to smaller towns and
cities, launching Maggi noodles value-for-money packs priced at ₹5 as almost 60% of the
FMCG volumes come from products below ₹10. The share of these products for Nestle
improved from 21% some years ago to over 30% now.
We can clearly state Nestle is a company that thinks on its feet and it has given tough
competition to its rivals in terms of pricing, packaging, flavours because of which it stays
ahead of each instant noodle manufacturers.

SWOT (Strengths, Weaknesses, Opportunities & Threats)

CUSTOMER ANALYSIS AND SURVEY
 CONCLUSIONS AND RECOMMENDATIONS

In conclusion to our research done on Nestle Maggi noodles where the team has invested
their time and efforts for more than a month of time, we would like to point out that the
Nestle Maggi noodles owns a market share of 60%. According to the primary research we
have conducted, we found that 91.5% of the respondents think of Maggi when they hear
noodles, which clearly shows that the positioning done by Nestle Maggi noodles is on top of
their customer’s mind. The data we have gathered from different sources like the Annual
Report of Nestle, different websites and talking to various customers, we came to the
conclusion that Nestle Maggi’s “2-minute noodles” is the most known variant of Maggi
noodles and very few people have tried Maggi’s other variants like “Atta Noodles”, “Chicken
Maggi”, “Hot Heads” etc.

So, we would like to recommend that

 Nestle Maggi needs to advertise or market their other variants more, than “2-minute
noodles” because this is the only area where Nestle Maggi can improve their market
performance

 To increase its market share, Maggi can enter the new product line of
chips, chocolates etc.

 For consumer to perceive Maggi as a healthy product, Maggi noodles should

advertise it products highlighting its health attributes like nutrition value, vitamin
etc.

LEARNING EXPERIENCE

In this we worked on Nestle MAGGI noodles, during this we gained a lot of knowledge on
the market share, SWOT, market growth, competitors, marketing mix used by MAGGI. The
past few months were very constructive for us and this project gave us a vast exposure on
how to apply all the knowledge practically when studying about a company. We learned
how Nestle works, be it the challenges faced by the marketing team, the threats, the
opportunities and much more. During this pandemic, understanding expectations of
customers was the toughest of all of them, as we were not able to gain the real insights of
the customers & sellers by going out and do the market survey. It has been a challenging,
inspiring and most desirable experience and it will be cherished forever. This project helped
us a lot in developing time management skills that would help us to handle problems both
in our professional and personal life. Completing projects allotted to us has been a big
challenge but doing this has definitely improved our confidence level. Feedback at every
stage from our academic mentor and every other person who was involved in the project
has helped us a lot in improving our skills. Made new connections whose guidance and
direction will help us in becoming a better person in our professional career. The best part
of this project was, when we were able to apply the classroom concepts in real practices.
 REFERENCES

Annual Report of Nestle India Limited

https://en.wikipedia.org/wiki/Maggi

https://www.nestle.com/brands/allbrands/maggi_culinary

https://craft.co/nestle/competitors

https://www.moneycontrol.com/india/stockpricequote/food-processing/nestleindia/NI

https://www.mbaskool.com/brandguide/food-and-beverages/526-maggi-noodles.html

https://economictimes.indiatimes.com/industry/cons-products/fmcg/maggi-attains-over-60-market-
hare-touches-pre-crisis-level-in-value-terms/articleshow/65290749.cms?from=mdr

https://en.wikipedia.org/wiki/Nestl%C3%A9

https://www.marketingmind.in/check-top-10-selling-noodle-brands-india-2018/

https://www.nestle.in/aboutus/allaboutnestl%C3%A9

https://www.business-standard.com/company/nestle-india-175/information/company-history

https://strategicmanagementinsight.com/swot-analyses/nestle-swot-analysis.html

https://bstrategyhub.com/nestle-swot-analysis-2019-swot-analysis-of-nestle