1 Marketing Mix of Nestle Maggi

Marketing Management Project Report

On Marketing Mix Of Nestle Maggi (Noodles)

Submitted by
Team 11

Arshraj Teotia - 20DM045

Barkha – 20DM057
Avinash Kukkala – 20DM051
Chetan Sharma – 20DM065
Deepanshu Pal Singh – 20DM071

Research Guide
Professor Dhruva Chak
Assistant Professor, BIMTECH

ACKNOWLEDGEMENT
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We are grateful to Birla Institute of Management Technology,

Greater Noida for giving us an opportunity to pursue our research on
“Marketing Mix of Nestle Maggi”. I wish to thank Professor Dhruva
Chak, BIMTECH, who has been a perpetual source of inspiration and
offered valuable suggestions by serving as our Online Research
Guide. Without his guidance, it would have never been possible for us
to complete the project.
We would also like to thank Ms. Aditi Sharma, Area Sales Manager –
Nestle who helped us in collecting information for this project. We
would also like to thank our parents, friends, and acquaintances,
whosoever was included in this project directly or indirectly.

EXECUTIVE SUMMARY
The marketing research project has been written keeping in the mind
the operations of Maggi (Noodles) in India. The research helped us to
understand the pricing, promotion strategies and distribution
channel of Maggi.

In the first part of project report, general information about the

company has been gathered. Information was gathered from primary
and secondary resources.

In the second part, the report covers the Maggi India’s market size,
growth, trend, opportunity, threats, competitors, market share etc.

In the third part, a questionnaire was prepared to get insights of

behaviour of consumer of different age groups and interviews were
taken which helped us in understanding the staff of Nestle India like
Area Sales Manager.

Due to restrictions and lockdown, the surveys were conducted online

where we floated a survey form consisting of questions, targeting
certain aspects of Nestle Maggi India.

INDEX
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S No. Particulars Page No.

1 About The Company 4

2 Market Growth 5

3 Competitors 5-6

4 Segmentation, Targeting and 6-7

Positioning

5 Marketing Mix 7-9

6 Market Share 10

7 SWOT Analysis 10 - 12

8 Recommendations 12

9 Annexure I 13 - 14

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INTRODUCTION

About the Company

In the FMCG Industry Nestle is one of the largest companies in the
world among HUL, P&G, Kraft, Britannia etc. Nestle was
established in 1866 as Anglo-Swiss condensed milk company. In 1905
a merger happened with Henri Nestle’s company, and was known as
Nestle Group. The company is headquartered in Switzerland. Nestle
has a vast range of products from all type of foods to beverages.

Maggi is a food brand which was founded by Julius Maggi launched

in Switzerland in the year 1886. In 1947, it became part of the parent
company Nestle. Maggi mainly comprises of instant noodles, soups,
sauces, bouillons and cooking aids. Maggi was launched in India in
the year 1983. It is marketed by the name maggi “2 minutes
Noodles”.
In May 2015, Maggi had fallen into a big controversy in India
regarding its instant noodles due to which it was banned in the
country. The ban was due to the high levels of monosodium
Glutamate (MSG) and lead (Pb), due to which maggi’s share felt
drastically down to approx. 10 % but maggi regained faith within
some time and has reached top spot again with market share of
approx. 60% in 2020.

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MARKET GROWTH

Maggi’s one of the major promotions are through “Word Of Mouth

Competitors of Maggi

There are 5 major players in this sector including maggi and it is

dominated by maggi with it’s 60% share. Some of the major
competitors in this sector are
1. Sunfeast yippee with the share of 10%
2. Ching noodles
3. Knor soupy Noodles
4. Patanjali Aata Noodles

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SEGMENTATION:
Market segmentation divides the vast market into small
homogeneous group of customers who have similar needs or wants
which could be satisfied by specific products. Segmentation of Maggi
is based on Demographic, Psychological, Behavioural and Geographic
conditions like Age, Eating Habit and Lifestyle of Urban Families. It
mainly focused on age and eating habits of urban families

TARGETING:
Targeting refers to company’s selection of suitable market segment
and facilitate it with respect to the likelihood of profitability and
weather the segment fit with company’s identity. The targeted
segment for Maggie is kids, youth and working individuals who have
a fast paced life. Since its beginning, its focus was to develop food
products for people with busy lifestyle.

POSITIONING:
Positioning is the process of creating a clear and unique image of the
brand and its product offering in the eyes of the customer. Maggi
used the below principles to position itself as the topmost brand.
1. Product Differentiation: Maggi’s claim as a healthy and ready
to make in 2 minutes which was not done by any of its
competitor lead to their differentiation from the other players in
the eyes of general population.
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2. Positioning Statement: Positioned their product as a fast relief

from hunger and well known slogan 2 minute noodles. The
mass population look at Maggi as Ready to eat and Tasty and
fun loving.
3. Product Image: In India Maggi become as a synonym for
noodles, which is the main reason for other brands having hard
time creating an image for their product.
4. Service Differentiation: To maintain its top position in market,
Maggi always look after the needs, desires and prerequisites of
its customers.

Marketing Mix
PRODUCT

There are four types of Maggi in the noodles category:

Maggi 2 Minutes Noodles

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Maggi Oats

Maggi Chicken Noodles

Maggi Nutritious

PLACE

DISTRIBUTION CHANNEL-Producers to Distributors to

Wholesalers to Retailers to Consumers.

Place refers to the point of sale. In every industry, catching the eye of
the consumer and making it easy for her to buy it is the main aim of
a good distribution or 'place' strategy. Retailers pay a premium for
the right location. In fact, the mantra of a successful retail business
is 'location, location and location'.
Maggi follows an intensive distribution channel. Its products are
widely available. The reason behind its top position is its deep reach
to every remote area. Maggi Noodles are directly taken from the
factories which are independently managed to carry and Forward,
Agencies store in their large warehouses and pass them to the

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wholesalers. These quantities are then distributed among the

retailers or to the end customer through hypermarkets, other small
businesses. The retailers can be convenience stores or local
supermarkets. It is one thing to have a successful product. It is a
completely different ball game to ensure time and time again that
this top of the line product reaches the nooks and corners of the
world. Even if you go to the Himalayas, you will find Maggi selling
there at select places. This single factor – distribution, has been the
backbone for the success of the maggi.

PRICE
Maggi uses a cost-based pricing strategy to tap in to various markets.
Nestle strives to capture maximum market share with low prices and
high-quality standards. As Maggi is trying to tap into all segments of
income category it keeps differential prices depending upon the
locations across country. Also, its offerings are available in wide
variety of packages so that people can buy according to their needs.
In recent times Maggi has started coming up with new products like
the cup range and Hot Heads noodles which it targets for the higher
income level segments and hence are priced at higher range. Maggi
has a very clear-cut policy regarding its prices. From its initial years
it has kept low pricing policy because, its consumers mostly belong to
the average middle class group. To make the product affordable they
had to tone down their prices but the volumes the product generates
has helped the company in maintaining a healthy profit.

PROMOTION
Maggi has used advertising as its main promotional strategy to
create awareness and for brand recall. Initially it focused on kids and
working women who have very less time to prepare food. The
advertisements mainly flashed on kids channels with effective tag
lines of “Bas 2-minute” and the jingle “Maggi Maggi Maggi”. It has
also used the “Miss you Maggi” ad campaign to regain back the lost
customers after the Maggi ban in India. As sales promotional
strategies over the years it has attached various free goodies with its
products such as free samples, fun books and toys. Maggi has also
offered discounts, Scratch n Win schemes. It also used many
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celebrities notably Amitabh Bachchan and Madhuri Dixit for brand

endorsements.

Market Share
Maggi has now attained over 60% market share but it is still less
than its pre-crisis period which used to be 75% of market share.
Maggi was banned by FSSAI in June 2015 for containing Lead
beyond the Permissible limits and after Legal battles, the brand was
back into Market in November 2015. Maggi has 30% share in total
sales of the Company. Nestle India had crossed 10000 crore sales
mark in 2017.

SWOT ANALYSIS

Strengths of Maggi
1. Maggi is a market leader in noodles category with high brand
loyalty
2. Nestle as a parent company with rich history and being financially
stable, good product distribution adds to the strengths of Maggi
3. Other than Instant noodles, it also offers lots of Varieties like
Sauce, Soups etc. So, by having large SKU’s (Stock keeping unit),
Maggi have an advantage over its competitors.
4. Strong visibility and excellent marketing of Maggi made it a Top of
the mind brand.
5. Easy to cook feature made maggi very popular among students,
young couples, youth, Restaurants & Road side stall and Canteens
contributing to its success.

Weaknesses Of Maggi

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1. Controversy of Maggi being harmful to health caused a lot of

Damage to its brand image.
2. Intense competition from Local and National players lead to
decrease in market share in the recent years even when the Market
size was expanding.

Opportunities For Maggi

1. Company should tie-up with Restaurants, Schools and Hostels to
make Maggi a small part of the daily life of Consumers.
2. It is majorly used in urban areas as it can be cooked instantly, It
should target on Rural market as well.
3. Maggi should try to expand its product categories in other ready to
eat products like Corn flakes, Chips etc...
4. Maggi should launch new flavours which can help the brand group
in retaining its existing customers.
5. It should leverage the Nestle's brand image to become a global
brand

Threats To Maggi
1. Cut throat competition from local and national players which leads
to price wars and reduction in market share.
2. Strict regulations of government affects the business
3. Commoditization of the product.
4. Does not belong to “healthy product” category

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RECOMMENDATIONS

 Nestle should focus on awareness programmes by doing more

advertisements, road shows etc. which will help in building the
brand image.

 Nestle should widen its distribution channel for maggi, more

delivery trucks and more distributors should be added to the
channel so that consumers can find maggi at right time, right
place and in right quantity.

 Extensive advertisement for the Maggi (Atta Noodles) as its

positioning is more of junk food and less of Nutritious in
consumer’s mind

 Maggi should bring back its price to Rs10 as competitors of

maggi offers in Rs10 i.e. Yippee.

 There is major requirement for change in packaging and its tag

line as it creates negative image in consumer’s eye, when it is
not cooked in 2 minutes.

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QUESTIONNARE

Questions Options
Name
Age Below 18
18-30
31-50
Above 50

Gender Male
Female
Prefer not to say

Category Student
Employed
Home Maker
Own Business
Other
Are You a Maggi Person? Yes
No

How Frequently Do You Eat Daily

Maggi? Very Frequently
Ocassionally
Rarely

If Maggi Is Not Available, Patanjali Noodles

what Other Noodles Would Yippee
You Prefer? Knor Noodles

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Ching’s Hakka Noodles

Rank The Below Noodles Maggi
Brand On The Basis Of Patanjali Noodles
Preference. Knor Noodles
Ching’ Hakka Noodles
Yippee
Which Quantity Pack Do Single Pack
You Prefer? Pack Of Two
Pack Of Four
Pack Of Eight
Pack Of Twelve
Pack Of Twenty Four

How likely Do You Unlikely

Recommend Maggi? Most Likely

What Do You Dislike About Price

Maggi? Quality
Quantity
Nutrition
Taste
Other

Are You Happy With The Yes

Current Price And Size No
Variants Of Maggi? Maybe

How Do You Percieve Good for Health

Maggi? Ready To Eat
Tasty/Fun Loving
Junk Food

Since Corona Virus Yes

Outbreak, Is there any No
change in your Maybe
Consumption For Maggi?
If You Could Change Just
One Thing About Maggi,
What Would It Be?

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