1.

INTRODUCTION
The MAGGI brand originates from Switzerland where in 1886 Julius Maggie to created a recipe
of flavors to bring added taste to meals. This marked the beginning of the MAGGI brand and its
convenient products. Known for his nutrition oriented approach, the Swiss government asked
Julius MAGGI to create a product that would be quick to prepare yet nutritious as more and
more women were working outside the home. In 1983, Julius magi developed a formula to add
taste to meals, which later paved the way for MAGGI and other easy to make food products.
The original company came into existence on 1872 in Switzerland, when Julius magi took over
his father’s mill.
Maggie had merged with Nestle family in 1947.

Environmental analysis
Environmental analysis is a strategic tool. It is a process to identify all the external and internal
elements, which can affect the organization’s performance. The analysis helps align strategies
with the firm environment.
MAGGI as a company focuses on saving the environment. MAGGI PESTLE analysis highlights the
various elements which impact its business performance. This understanding helps to evaluate
the critically of external business factors for any brands.

Mission
The MAGGI brand’s mission is to bring people closer by encouraging homemade cooking and for
the family to spend time together when preparing food at home. They also aim to help mothers
to prepare quick and easy meals for their family members. Therefore, MAGGI highlights that ‘’
HAPINESS IS HOMEMADE’’. In 2010

Vision
Being the best thing in everything we touch and handle ‘’RESPECTED, TRUSTWORTHY FOOD,
NUTRITION, HEALTH AND WELLNESS COMPANY’’.

Company values
We believe that our company will be successful in the long term by creating value, both for our
shareholders and for society. We call this approach creating shared value (CSV). It is principle for
how we do business.
All of which are rooted in respect; respect for ourselves, respect for others, respect for the
diversity of the world we live in and respect for the future.

Geographic spread
Division of the market into different geographical units such as nations, cities, states, regions,
neighborhoods etc
 Region: South India, Western Region, North, East
 City: Class
  Rural, urban, semi urban areas

Organizational structure
Organization effectiveness is a totality of organizational goodness and elements such as
productions according to the official website of NESLE (MAGGI PERENT) company’s
stakeholders include its employees, customers, suppliers and partners.
HOW DO THEY MAKE THEIR STRATEGIES
 Using the nostalgia factor
MAGGI has always made family based advertisements to attract the customers. Nestle
launched MAGGI noodles with its captivating two minute tagline. They targeted right
segment for this which was the major factor in deciding its success.
 Jingles and taglines
A jingle is a memorable slogan set to an engaging melody mainly broadcast on radio and
largely used today on television commercials .Cultivating strong jingle creative can offer
an effective way to cultivate brand ubiquity without crossing the line of obtrusiveness.
A tagline is express company’s most important benefits.
 For sustaining their image Nestle invites housewives to send new innovative recipes
made from MAGGI.
 MAGGI using the strategy of brand extension for attracting more customers because
every customer has different choices.
 MAGGI spend a huge amount of work for maintain the same taste and nutrition of the
product.
 Sales promotions
The company adopted sales promotion activity order to achieve objectives.

Innovations and creativeness

Innovation has been at the heart of their company since its beginning. They have been
dedicated to enhance peoples live. Each day they strive to make their products choices tastier
and healthier that helps consumers for themselves and their family. This would not be possible
without their unmatched and passion for quality in everything we do.

Customer and sales

MAGGI’S satisfaction is of tailoring their plans to meet the constantly evolving needs of their
customer base across a vast array of commercial situations. It is about what needs to done on a
daily basis to ensure their products are well exhibited at the right place and at the right time.
The sales team of MAGGI is dedicated to ensuring customers favorite products are accessible
and available with the quality that customers expect.
Reasons for purchase of MAGGI products
1) MAGGI image
The basic towards to objective was to access the consumer’s perception towards the
brand in the post ban re launch scenario. The analysis of the primary field based survey
and the focus group study of the respondents indicate a strong loyalty among the
MAGGI consumers. This also aligns very well with some of the brand models on brand
equity, brand personality, emotions.
2) Quality
MAGGI follows a strictest quality control measures, stringent product hygiene and food
safety standards through quality checks.
3) Price
MAGGI products are law in price. Consumers can buy this an affordable price.
4) Availability
MAGGI is available in multi dimensional society.

2. Competitive analysis
2.1 Competitive Rivalry - HIGH
For a long time, MAGGI especially its instant noodles have dominated the market with very little
competition. However it is now facing competition after the emergence of a number of other
brands which are making all the products that MAGGI is making. The competition includes
KNORR, SUNFEAST, Top Ramen and others. There is no product differentiation. As a result
MAGGI has lost significant market share and its market share is still on a decline. The
controversies and bans also gave MAGGI much loss. The competitive rivalry against MAGGI is
high.

Threat of new entrants – HIGH

There was a time when MAGGI had no competition. Now new entrants are entering the market
very regularly. The entry barriers are very law, No extensive investments and cheap raw
materials are easy to develop economies of scale. The competitors of MAGGI are positioning
themselves differently in the market in order to attract more of the market share. Most of the
new entrants have the back support of much larger firms that already have strong distribution
channels. Thus, making entry into industry easier and the threat of new entrants are higher for
MAGGI.
Bargaining power of suppliers – LOW
The suppliers of MAGGI supply it with raw materials such as sugar, salt, wheat, spices, packaging
etc. Since these are readily available products and a number of suppliers available for these
products, the suppliers are in no position to bargain with magi or attempt to influence the
market prices. The switching cost for from one supplier to the other is low. The suppliers are
also happy as MAGGI is a bulk purchase pro MAGGI dividing the suppliers with large business.
Therefore the bargaining power of the suppliers against MAGGI is low.
Bargaining power of buyers – HIGH
The products MAGGI makes are also being made by all the other competitors. There is no
product differentiation. The switching cost for the buyers is also low. MAGGI therefore, is no
position to influence the buyers and attempt to increase the market prices. If it does so, the
buyers will immediately shift to the products of the other brands. Now MAGGI has no
bargaining power against the buyers of its products.
Threats of substitutes – HIGH
MAGGI makes food that is easy to cook and instantly provides protein energy. There are number
of other products that that also provide his function such as soups, vegetarian cakes, pasta,
salads. In fact these substitutes are being preferred due to increased health awareness. The
substitutes are easily available and there is no switching cost. The threat of substitution is high
for MAGGI.

2.2 External factors

1. MACRO FACTORS
2. MICRO FACTORS
Micro factors - PESTEL
P- Political
1. Changing regulation surrounding food standards and marketing actions.
2. Government stability in new emerging economies.
3. Changing global regulations.
E- Economic
1) Awareness and knowledge of changing inflation, economic, growth rates and income
levels.
2) Changing consumer budgets, rise of the cost conscious consumer.
3) Rising price of raw material good in relation to the need to source from sustainable
suppliers.
S- Social
 1) Changing consumer attitudes- move towards healthier products in line with government
initiatives.
2) Changing lifestyles- return back to home cooking and the promotion of a family time in a
world of convenience.
3) The need to adapt to different cultural settings e.g. language, religious beliefs and family
settings.
T- Technological
1) Rise of social media, consumers interacting with firms and being able to do so across a
range of platforms.
2) Innovation fuelled by technological developments.
3) E-commerce as a platform for development.
E- Environment
1) Increased attention directed towards cooperate social responsibility.
2) Environmental concerns from consumers including concerns over packaging.
L- Legal
1) Changing nature of regulations.
2) Need to adopt global regulations and changes across different international market.

MACRO FACTORS
Suppliers
Suppliers provide the raw material resources, unfinished goods and labors to the
company in order to produce goods and services. The effectiveness of suppliers
determines the efficiency if the company in terms of producing the goods. In addition to
that the quality of the finished product has a strong with the suppliers of the firm
especially in case of food products. As the presence of the company is in more than
hundred companies, it is a challenge for the company to maintain its standard all over
the world and provide the consistency to its customers in the taste and quality of the
product.

Market intermediaries
The market intermediaries of the company help to advertize, sell and distribute its
product to the end customers. The physical distribution network of the company decides
the medium by which the finished product is delivered to the end customer on time and
with safety. The marketing service department of the firms helps in the promotion of the
product and acts as a communication channel between the company and customers.
Develop department to develop a product according to the need of the customers. The
 other intermediaries of the company like banks and insurance companies help to
provide the funds.

Customers
The immediate customers f MAGGI are retail and grocery stores which provide the
products of the company to the end customers at a reasonable price and a reasonable
profit.

Competitors
Below are the top MAGGI competitors
1) Nissin Top Raman
2) YIPEE noodles
3) Private brands like tasty treat

2.3MAGGI Management Structure

National sales manager

Regional sales manager

Consumer 1.Areal manager 1.System support 1.Event

Service manager 2.Territory in charge 2.System support manager 2.Event
3. Sales Associates manager
4. Distributer 3.Leader
Decision making process
Today’s dynamic changing environment has increased the number and complexity of decisions
and created a need for new decision making process to large international organizations. The
reason why MAGGI can keep a leading market position is that the company makes decisions
based on the following principles: knowing customers, a long term vision, product extension
and innovation, production efficiency, quality control, multi brands and the autonomy of
regional managers. These principles help MAGGI a programmed decision making system.
MAGGI uses management science, for example established rules, procedures and prior
experience, as an excellent device for organizational decision making when problems are
analyzable to be identified and measured. Programmed decision can be made generally based
on clear criteria of performance, good information, about current environment and specific
alternatives. Which it comes to non programmed decisions are a number of factors can affect
the process by which decisions are made on the organization, especially the organization’s
internal structure and the external environment.
MAGGI usually brings multiple alternatives that involve everyone in the decision making process
to reach a consensus.

Distribution channel
MAGGI are directly shipped to CFAs located in each state. Carry and forward agencies provided
the warehousing facilities that are required for distribution across the state. The presence of
carry and forward agencies in each state ensures that the taxes and other state charges applied
are lower.
The next entity in the channel is the distributer. There are two types of distribution.
1) Distribution Targeting Traditional trade.
2) Distribution targeting modern trade.
Distribution focused on traditional trade deal with
1) Wholesalers for reaching areas with spares demand.
2) Retailers in area of high demand.
Wholesalers distribute MAGGI products to smaller stockiest and retailers.
Retailer stores are four board categories.
1) Super A – Super high volume retailers
2) A – High volume retailers
3) B – Medium volume retailers
4) C – Low
Mergers and Acquisition of MAGGI
ALIMENTANA S.A., the holding company responsible for MAGGI, merged with Nestle. Nestle
began manufacturing MAGGI products which were sold all over the world and hold majority of
market share. Also Nestle acquired cross and Blackwell, Findus frozen foods, and Libby’s fruit
juices.

Diversification
The MAGGI brand began with one variant and later diversified into sauces, pastas and
MASALAS. The product mix of MAGGI is divided into various categories defined below.
1. Noodles ( MASALA, chicken, rice and Atta MAGGI Noodles)
2. Sauces ( tomato, hot and sweet, ginger, garlic, coriander, CHILLI)
3. MAGGI PICHKO ( tomato)
4. Soups healthy ( cream mushroom, sweet sour, tomato, mixed vegetables, Chinese
varieties)
5. MAGGI magic cubes ( chicken, vegetarian MASALA )
6. MAGGI PASTA ( white and red )

Corporate culture
MAGGI is one of the famous products of the NESTLE, Which is among kids favorite food
and snack item. An organizational culture is all about values behavior within the
organization which leads to the contribution towards the unique psychological and social
environment. Believes, values and principles of an every organization depict the culture
of an organization. The culture also has the inclusion of the system, vision, values,
language and norms within the organization.

MAGGI development programs

PRODUCT DEVELOPMENT
Re launched with vitamin A
Fortified with Calcium and goodness of Vitamin A,
Enriched with vegetables and an enhanced chicken taste that is bound to be hit with the
kids.

The MAGGI devilled range that caters to young Sri Lankan adults with a love of hot and
spicy food.

PROMOTIONAL DEVELOPMENT
Sales promotion
PR activities
Free gifts
 Radio, TV promotions, Face book, Twitter and websites
DISTRIBUTION DEVELOPMENT
180 distributers spread island wide
Modern trade, Distributers, Institutions, Sales
PROCESS DEVELOPMENT
Efficiency of process
Quality slandered
Flexibility
PEOPLE DEVELOPMENT
Staffing levels
Reward strategy
Training and development

Resources of the company

HUMAN
MAGGI is a people inspired company. People, their strengths, talent and energy are their most
important strength. Currently there are around 328000 employees and they sell product and
services in 191 counties. As the function attracting, developing and engaging more of
exceptional talent that they need to grow their business.
CAPITAL
MAGGI’S priorities are to invest in the long term growth and development of the business,
while, increasing share holders and creating shared values. MAGGI is preference to allocate
capital toward value creating investments to expand the company’s core food, beverage and
nutritional policies. They take a disciplined approach to capital allocation with prudent financial
policies.
PHYSCIAL
The resources of company are the tools that are used to turn its capabilities into distinctive
competencies. Tangible resources are the properties which have physical existences, which one
can see and touch, e. g. Machinery, cash etc. Nestle owns 29 research and development centers
around the globe, which is always in pursuit of excellence in food products.
 4. SWOT Analysis
STRENGTHS
 Strong brand loyalty
 Market leader
 High distribution channel
 Advertising strategies
WEAKNESS
 MAGGI noodles is the star product while other categories are slow moving
 Product have suspected indigents
 Over reliance on noodle product categories
OPPORTUNITIES
 Availability of new segments ( old age people)
 Increasing level of income of consumers and fast life
 Unexploited rural market
THREATS
 The competitors provides higher margins to its distributers and growing fast
 Government influence on the consumption of specific products which belong to culinary
category
 Foreign competitors

5. TOWS Analysis
SO
 Increase marketing to attract consumers
 Use its preference on social media for marketing and to attract customers
 Develop environmentally friendly products through innovation
 Market products at low prices by offering discounts
ST
 Use a strong distribution network to reach out to customers
 Use its strong financial position to invest in intellectual property rights

WO
 Finance ownership of the property through the low interest rate to increase the
proportion of owned property to rented property
 Increase payrolls, provide incentive packages and benefits to employees

WT
 Increase spending on research and development to unable MAGGI a tangled mess to
better compete with competition
 Provide incentives, increase engagement or provide a better work environment to retain
talent

6. Advertisements
 MAGGI products place advertisements on TV, in magazines, and on billboards
throughout cities
 Since MAGGI products range greatly each products uses different tactics to catch
audience attention
 MAGGI using attractive slogans e.g. “Ready to cook”, “2 minutes noodles”
 Advertisements increases the public awareness of the brand

Analyze the impact of advertising on consumer buying behavior market provides a key to
gain actual success only to those brands which match best to the current environment
i.e.” imperative” which can be delivered what are the people needs and they are ready
to buy at the right time without any delay. Results reveal the consumers are highly
influenced by advertising in their preference for the brand.

MAGGI HOW TO PRODUCE OVERALL POSITIVE IMPACT ON SOCIETY

1. Increase growth
2. Improve margins
3. Allocate capital prudently
4. Creating shared value

6. MAGGI parent company NESTLE’s CURRENT CSR activities in

SRILANKA
In line with their commitments and objectives, Company is working to achieve water
efficiency in their operations, act on climate to reduce emissions and safeguard the
environment we live in.
 MAKING SRILANKA MORE SUSTAINABLE BY CARING FOR WATER
Learning what they have done to achieve water efficiency
 MAKING SRILANKA MORE SUSTAINABLE BY ACTING ON CLIMATE CHANGE
Find out how to reduce emissions across the value chain by operating more efficiently
 MAKING SRILANKA MORE SUSTAINABLE BY SAFEGUARDING THE ENVIRONMENT
Read about the work what they are doing to reduce the use of plastics and making sure
those are recyclable or reusable.

7. RECOMMANDATION AND STRATEGIES

Emphasis on segment with age groups 25-35 and above

Company should focus on creating the distinctive ranges and images to provide the
benefits of instant cook and healthy food.

They should launch the advertisement campaigns and should try to deal as the brand
ambassador. And they should also conduct the research to find out the market
penetration of the product.

Foray in to other food products like Chips, Chocolate etc. Under its sole brand name

CONCLUTION
MAGGI has achieved a great position in market and this product is least affected by its
competitors (Top Raman, YIPEE, etc)
MAGGI original has been the best one, It flavors were not able to whet the appetite to
the same extent.
MAGGI from last 20 years has managed to remain unbeaten in the market because it has
always given more preference to the state of people.