ENTREPRENEURSHIP DEVELOPMENT

BBA - 307

Session 2020-23

Live Project

On

THE CUSTOMER LOYALTTY TOWARDS MAGGI

Submitted To: Submitted By:

Name- Dr. Ruchi Srivastav Name- Arin sharma

(Department of Management Science) Enrollment- 02221301720

Programme – BBA_5EA

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 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 Prof. Dr. Ruchi Srivastava who was 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.

Name of the student

Arin sharma
BBA: - 5TH Semester Shift- II
Enrolment No: - 02221301720

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 DECLARATION

I hereby declare that this Live Project Report titled "The Study the customer loyalty towards
Maggi in comparison to Top Ramen and Yippee" submitted by me is a Bonafede 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.

(Signature of the Student) Date: - 20/01/2023

Name: - Arin sharma
Course: - BBA_5EA

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 EXECUTIVE SUMMARY
The project aims at understanding the consumer's commitment to repurchase and stay loyal to the
product that keep consuming for long stretch of time. 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 Brand loyalty towards Nestle Maggi after the
recent ban that it went through. There can be no better opportunity to interact with the external as
well as the internal customers of an organization. Brand loyalty is more than simple
repurchasing, however. Customers may repurchase a brand due to situational constraints, a lack
of viable alternatives, or out of convenience. Such loyalty is referred to as "spurious loyalty".
True brand loyalty exists when customers have at high relative attitude toward the brand which is
then exhibited through repurchase behaviour. This type of loyalty can be a great asset to the firm:
customers are willing to pay higher prices, they may cost less to serve, and can bring new
customers to the firm. For example, if Joe has brand loyalty to Company A, he will purchase
Company A's products even if Company B's are cheaper and/or of a higher quality.

The Research findings focuses on understanding the buying behaviour that consumer has
towards maggi after the recent ban in which the Maggi samples were tested at Kolkata's referral
laboratory and the test results showed that there are added monosodium glutamate and excess of
lead. This led to ban of maggi in several states of India. However, Maggi has been relaunched
and various marketing measures are taken by Nestle to regain its old Image and gain the brand
loyalty that it had earlier.

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 TABLE OF CONTENTS

S.NO TABLE OF CONTENTS PAGE

NUMBER
TOPIC

1. INTRODUCTION 6

2. HISTORY 7

3. SWOT ANALYSIS 10

4. COMPETITORS 12

5. CURRENT DEMAND OF THE COMPANY 14

6. COMPETITIORS ANALYSIS 16

7. PRICING STRATEGY 18

8. RESEARCH METHODOLOGY 21

9. APPENDIX 32

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 INTRODUCTION
Maggi is a German brand of food. It is quick and easy solutions – like bouillons, soups,
seasonings and sauces – to aid cooking and add flavors. The company headquarter is in
Switzerland. The mission of Maggi is to become champion 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.

Maggi used to belong to the working woman and her brood of happy, hungry children (who in the early
commercials are smiling aggressively and chanting for “Maggi Maggi Maggi” with frightening
vehemence); today it is the staple of bachelors, college kids, and young professionals. They’re the Maggi
kids all grown up. An acquaintance of mine working in an advertising firm recently tweeted: “If post 7
PM you walk into an ad agency and it doesn’t smell of Maggi you have probably not walked into an ad
agency.”

Maggi’s target audience in early 1980s India was much the same. In its first ads, the brand popularized
the image of the “Maggi Mom”: she cared for her children as much as the more-traditional Indian mother,
but, as a modern working woman, didn’t have the time to make time-consuming curries. Kids loved
Maggi; moms loved making Maggi. It took only “two Minutes” (a phrase used in India to mean, “like,
pretty soon,” i.e., anything from now to 20 from now). It was purportedly healthy. Maggi released flavors
specially tailored to the Indian market—particularly “masala” flavor, whose spice packet has become a
popular seasoning in its own right (a chef friend of mine told me that he sometimes uses it as a quick
marinade for chicken).

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HISTORY
Julius Maggi (1846–1912) took over his father's mill business in Kemptthal, Switzerland, in
1869. Under his leadership, the business developed into one of the pioneers of industrial food
production, with the aim of improving the diet of working-class families through better nutrient
supply and faster preparation

In 1882, at a meeting of the Swiss “Non-Profit Society”, the doctor and factory inspector
Fridolin Schuler spoke about the miserable nutritional situation of the factory workers: women
workers no longer had enough time to cook for their families, cold meals or alcohol often
replaced warm meals; meals were served in factory canteens and were cheap but not sufficiently
nutritious. The consequences were malnutrition, stomach diseases, and high infant mortality.
Schuler advocated high-protein, easily digestible pulses/legumes. He demanded they should be
offered to the working class in a convenient form for quick preparation and at a cheap price. The
society turned to the Maggi company, among others.

Julius Maggi experimented for two years with different methods of mechanical and chemical
processing of legumes and different mixtures. The results were presented to the representatives
of the society on November 19, 1884. They approved the results and signed a contract to
exclusively recommend Maggi’s legumes for a period of three years. Maggi in turn guaranteed a
fixed price and regular product controls for sales in Switzerland. However, great success did not
follow. The society was accused of representing the interests of a private company. The Maggi
company, on the other hand, had difficulties challenging other suppliers of soup flour on the
market, despite the support of the society.
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Since 1884, Maggi has been offering flour made from protein-rich legumes, which can be
cooked quickly by being roasted beforehand. Maggi was the first to bring protein-rich legume
meals to the market, and followed up with a ready-made soup based on legume meals in 1886.
After that Julius Maggi introduced bouillon concentrates, first in capsules, then in cubes. In
1897, Julius Maggi founded the company Maggi GmbH in Singen, Germany.

Maggi is a leading food brand from Nestlé. It has a variety of products and has a different range
for each country. Consumers also buy their products as they are low priced and affordable for
almost everyone. It has brought innumerable products to the market according to the needs and
tastes of its consumers. Its products are majorly categorized into noodles, soups and seasonings.
These products have exceeded people’s expectations and became their absolute favourite.

Through attractive graphics, Maggi’s label helps to promote the product. Their labelled products
information includes the logo, weight of each package, product ingredients, expiry date, cooking
instructions, consumer services line, manufacturer’s information and nutritional information.
Maggi introduced “money saver multi-packs” in the form of 2-in-1 packs and 4-in-1 packs. They
contain a service that lets the consumers try their products to get feedback from consumers of the
products.   

Maggie Noodles

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Maggi instant noodles are very popular in India, Pakistan, Singapore and some other countries as
well. It has 90% market share in India prior to a nationwide ban by the Food Safety and
Standards Authority of India which is now reduced to 53%.

Currently, in India, Maggi noodles carry a green dot, which means they are specifically
formulated to serve vegetarian only in India. And apart from noodles, Maggi has sauces and
soups available in various flavour and also products like Maggi Cuppa Mania, Maggi Masala and
Maggi Magic Cubes are quite popular and well adapted by Indians.

From the house of Nestle, Maggi is one of the most known brands and the clear leader in the
packaged food segment. The tagline “2 minutes noodles” is true to date. This is
because people love the taste of Maggi. And at the same point, the distribution of the product is
so far and wide that there have been stories written on “Meri Maggi”

Strength

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 Maggi is the market leader in the noodles sector, with a high level of customer loyalty. 
 Maggi is a top-of-mind brand thanks to its excellent advertising. 
 Because of Nestle, there is a wide range of products available.
 Maggi comes in a wide range of tastes. 
 The power of Nestle’s parent brand adds to the brand’s strengths. 
 Maggi sells soups, sauces, and other items in addition to instant noodles.
 It’s simple to prepare and ready to eat. Noodles are very popular among students, young
couples, and teenagers.
 Maggi has a lot of exposure thanks to TV commercials, print ads, web ads, and out-of-home
media.

Weaknesses 

 Risk of Overdependence: Maggi Noodles accounted for 57 percent of the company’s income
in 2014, even though their market share has shrunk dramatically (from 84 percent in 2012 to
63 percent in 2014). Although there are increasingly more competitors, the market is still
growing.
 With more and more educated people becoming more health-conscious, awareness of
Maggi’s negative impacts is growing.

Opportunities

 Maggi’s economic packages can reach out to untapped rural markets. 

 Can use Nestle’s distribution and brand recognition to establish a global presence. 
 New flavours and packaging can assist the business in expanding its customer base.
 Maggi can form partnerships with schools, colleges, hotels, and other organizations to deliver
ready-to-eat snacks.

Threats

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  The company is concerned about stiff competition from both local and national players.
 The spread of adverse effects of Maggi noodles via the internet and social media poses a
threat to Maggi’s survival. Because a decrease in the Maggi brand’s perceived value as a
result of its Noodles product category might have an impact on the brand as a whole.
 Maggi, like Coalgate and Surf, has become a generic term for noodle soup for the bulk of the
public.

Competitor

As we all know, Maggi has certainly been the topmost leading brand in the noodle industry for
Report Study on maggi.docx decades but there are many other brands as well which have given
close competition to MAGGI in the past as well as in the present.

Below are the top 2 Maggi competitors:

 RAMEN- The Ramen is the second top brand of Noodles in India and has been trying hard
for the last 18 years to beat Maggi. It is a global brand from Nissin, which was launched in
1991. Top Ramen then was the heavy advertiser in the media. Another factor was the
promotion strategy and its interesting distribution strategy. Top Ramen could not offer any

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 serious differential to Maggi either in terms of the brand or product. However, Maggi was
able to gain back the lost position because it was the pioneer brand that built the category.
Nissin established the brand Top Ramen in 1970. Ando desired to enter the US markets, but
discovered that most people in the US did not have ramen sized bowls leading him to later
develop the Cup Noodles brand.[2] In 1972, Top Ramen was introduced to the United
States after Ando saw growth potential of ramen products in US markets. [3] Top Ramen
became a major corporate force in the international noodle market which was dominated
by Maggi.[4]

YIPPEE- Sunfeast Yippee is the recently launched noodles brand in India, which has been
dominated by Maggi for many years. Recently, this product has also seen a lot of activity with
the launch of many new brands like Knorr from HUL, Ching’s Secret by Capital Foods, etc.
Instant noodles, or instant ramen, is a type of food consisting of noodles sold in a precooked
and dried block with flavoring powder and/or seasoning oil. The dried noodle block was
originally created by flash frying cooked noodles, and this is still the main method used in Asian
countries; air-dried noodle blocks are favored in Western countries. Dried noodle blocks are
designed to be cooked or soaked in boiling water before eating. Ramen, a Japanese adaptation of
Chinese noodle soup, is sometimes used as a descriptor for instant noodle flavors by some
Japanese manufacturers. It has become synonymous in the United States for all instant noodle
products.

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Instant noodles were invented by Momofuku Ando of Nissin Foods in Japan. They were
launched in 1958 under the brand name Chikin Ramen. In 1971, Nissin introduced Cup Noodles,
the first cup noodle product. Instant noodles are marketed worldwide under many brand names.

The main ingredients in instant noodles are flour, starch, water, salt and/or kansui (a type of
alkaline mineral water containing sodium carbonate and usually potassium carbonate), and
sometimes a small amount of phosphoric acid. Common ingredients in the flavoring powder are
salt, monosodium glutamate, seasoning, and sugar. The flavoring is usually in a separate packet,
although in the case of cup noodles, it is often loose in the cup. Some instant noodle products are
seal-packed; these can be reheated or eaten straight from the packet or container

Current demand of the company

Maggi, India's go-to option for instant noodles, saw a significant boost in sales amid the
coronavirus lockdown. Sales of Maggi shot up by up to 25 per cent over pre-COVID numbers as
consumers under lockdown stockpiled the instant noodle brand. Managing Director of Nestle
India Suresh Narayanan said that the company ramped up manufacturing across its five Maggi
factories during the lockdown.

According to a report in The Economic Times, some kirana shops have also started stocking the
1.68 kg packs that have 24 Maggi noodle cakes as they have run out of smaller packs. Demand
for Maggi has surged 20-25 per cent over the pre-lockdown period.

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The head of the Rs 12,000-crore India unit said that they ramped up manufacturing across eight
factories including the five factories that produce Maggi during Lockdown 1.0. This involved
reviving all the hundreds of suppliers, wheat flour millers, packaging suppliers and service
providers, he said.

"Enormous efforts have been put in by teams across factories in the most arduous situation. The
mission of my team was inspired to rise to a national cause and provide an essential brand at that
time," said Narayanan.

Pricing strategy
Maggi uses cost-based pricing strategies so that it can enter different markets around the world.
It shows that competition and cost are the two main factors for its marketing mix pricing
strategy. It has a clear-cut policy about pricing and has kept the policy low since the early years
as Nestlé tries to capture maximum market share with low price and high quality. 

To keep up with the changing economic times, Maggi has reduced the amount instead of price.
In addition, Maggi offers packets of different sizes at different prices for middle and low-income
customers so that everyone can buy according to their budget.

Pricing strategy for the existing variants of products based on the objective of “Maximizing
Market Share”. These variants are competitively priced. Since it is extremely price-sensitive, any
price change triggers an instant price check response from the competitor. Nestlé tried to survive
if they were afflicted by intense competition. They tried to cover variable costs and some fixed
costs to remain in the industry. 

It adjusts prices by using promotional pricing techniques. For example, they offer ‘Buy One Get
One Free’ during the mega sales season. Furthermore, Nestlé also implies segmented pricing. For
the different locations and different flavours, the price sets of Maggi products are different.

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 COMPETITORS ANALYSIS
1. TOP RAMEN

Top Ramen is an American brand of instant ramen noodles introduced in 1970 by Nissin Foods.

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PRICING STRATEGIES OF TOP RAMEN
Top Ramen Noodles are priced at a very cheap rate and customers often associate the low prices
to poor or low quality. This makes the customers consider other options since the ingredients in
the noodle is also assumed to be of questionable quality.

Ramen noodles are one of the cheapest food items out there, a pack being purchased with $0.35
to $0.55. But you’re probably wondering why. The answer is simple – ramen contains very
cheap ingredients and lightweight packaging when compared to other foods. It’s made up of
water, wheat, flour, salt, and a few more unimportant components which make it cost-effective
for manufacturers.

Ramen noodles can cost as much as $0.62 per package on Amazon, for example. The Maruchan
brand ramen costs around $20 for a box of 36 packages.

At Walmart, you can get a 12-pack of Maruchan ramen for $3.25 or grab a six-pack of 2.25-
ounce soup packages which costs just about $2.5.

Samyang Ramen is a more expensive alternative to the cheap and easy Maruchan ramen. A five-
pack can cost about $15, which brings each pack’s price close to $3.

You might also like our articles about the cost of lasagna, spaghetti, or tamales. There is a
cheaper option: buying in bulk. A pallet usually includes 120 cases and costs $10 per case,
bringing the total to about $1,200 for all of them combined.

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2. Yippee

Yippee! was born out of the need for better noodles. With the blending expertise of Aashirvaad
atta to create a round noodle block, a choice in masala and a special scientific process that does
not allow lumping; We do just that!

Yippee! was launched SEP 2010

END OF 2010

Yippee! expands

all over India

Yippie Noodles is a popular ready-to-cook noodles brand, which is available in many flavours. A
packet of instant Yippie noodle comprises of a noodle cake and a masala pouch. The product
strategy in its marketing mix is to offer instant noodles which are ready to eat after simply
adding hot water.

To prepare a meal one has to boil some water, pour the masala and then submerge the
rectangular noodle cake. The noodle cake being rectangular, it needs to be broken, this has been
a trend since Maggi first advertised it this way. But Yippie innovated this product by offering a
circular cake, that has been the point of difference for the brand. The Noodle cake is made of
wheat and the masala is made from various vegetable ingredients and household masalas. One
other USP of the product is that even 30 minutes after preparing the noodle the meal does not
turn into lumps. It remains as slurpy as it is supposed to be. Yippie noodle comes in a number of
varieties, to name a few – Classic Masala and Magic Masala.

PRICE STRATEGIES OF SUNFEAST YIPPEE NOODLES

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Sunfeast Yippee Noodles has targeted children and younger generation from middle, upper-
middle and upper class, which are in the look-out for a healthy in-between-meals snack when
hungry, as its target customers. It has positioned itself as instant noodles with different taste and
with no lumping even after thirty minutes of cooking.

Sunfeast Yippee Noodles belong to a cut-throat industry with very strong competitors. It has to
handle its pricing strategy very delicately so as to beat its competitors at their own game. The
company has adopted a competitive pricing policy and kept its prices at par with the prices set up
by its rival.

One smart thing that Yippee did was increasing its quantity marginally so that at the near-about
same prices its competitors are giving less of the product. In a competitive market, this is a huge
factor and made an even bigger difference.  It has resulted in Sunfeast coming out at the top with
its strategy and increasing its sales figures to register better revenues and profits.

TOOLS/ TECHNIQUES BY MAGGI TO RETAIN THEIR CUSTOMER

Maggi has used advertising as its major promotional strategy to create awareness. Initially, it is
focused on kids and working women who have less time to prepare food. The advertisement
mainly showed on kid’s channels with various effective taglines.

Maggi has also used the taglines of the “Miss You Maggi” ad campaign to regain back the lost
consumer after the Maggi ban in India. As sales strategies over the years, it has attached different
free goodies with its products such as fun books, toys, and free samples. Maggi also offered
Scratch n Win Schemes and discounts. It also used many celebrities notably Madhuri Dixit for
brand endorsements. This completes the Maggi Marketing Mix.

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 SUGGESTIVE PROMOTIONAL STRATEGIES
 Focus on creating distinctive image, based on twin benefits of 'INSTANT" and "HEALTHY"
with emphasis on health conscious and rural market.

 Conduct promotional campaigns at schools in small towns with population more than 10,000.

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 Strengthen the distribution channel of the rural areas within 100 of all the metros.

 Foray into other food products like chips, chocolates etc under its brand name would not only
help in Brand extension but will also enhance Maggi's market share.

 Launch new advertisement campaign (TV., Radio etc) with the Brand Ambassador.

 Mail order marketing

 After-sale customer surveys

 Store display

Research Methodology

Data Type

1. Primary Data

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In order to collect primary data regarding the study, I asked some working professionals in
companies to fill a form. The form consisted of 7 simple questions about communication and
cross-cultural communication

2. Secondary Data

Primary data is that data which is already collected by someone. Secondary data was collected so
as to have accurate results. Required data was collected from various books, internet.

SAMPLE SIZE- 50 working professionals

Fig 1.1

o Age

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 Fig 1.2

ANALYTICAL OVERVIEW

1. which brand of noodle do you prefer?

Response Frequency of viewers Percentage

Maggie 27 54
Top ramen 11 22
Yippee 12 24
Total 50 100
Table 1.1 noodle you prefer

Fig

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Interpretation:- More then 54% of the professional has choose Maggie over other brand. With
yippee 24% and top ramen 122%

2. what size pack generally do you purchase ?

Response Frequency Percentage

Small 15 30
Big 15 30
Family pack 20 40
Total 50 100
Table 1.2 size of pack you purchase

Fig 1.4

Interpretation:- Generally people buy family pack 40% and small with 30% in this survey.
Other than big pack 30%

3. How frequently do you purchase noodles ?

Response Frequency Percentage

Daily 10 20
Weekly 18 36
Monthly 22 44
Total 50 100
Table 1.3 frequently noodles you purchase

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 Fig 1.5

Interpretation :- as we can see people generally buy noodles over a period of month with 44%
and after that weekly 36% and daily 20%.

4. Which media of advertisement influence you to purchase the noodles ?

Response Frequency Percentage

Television 23 46
Newspaper 8 16
Hoardings 10 20
Display 9 18
Total 50 100
Table 1.4 media of advertisement

Fig 1.6

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Interpretation :- people get influence by television as they see many different types of ads of
noodles with 46% rest followed by newspaper 16%, hoardings 20%, and display18%.

5. the quality of which product you find better ?

Response Frequency Percentage

Maggie 22 44%
Yippee 11 22%
Top ramen 17 34%
Total 50 100
Table 1.5 product you find better

Fig 1.7

Interpretation :- many people find the quality of Maggie as good and compare to other any
noodles in this industry.

6. After Maggie lead incident have you choose yippee or top ramen as alternative ?

Response Frequency Percentage

Yes 28 56
No 22 44
Total 50 100
Table 1.6 which noodle will you choose

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 Fig 1.8

Interpretation:- as we all can see that 56% has switched from Maggie to other noodles
because of lead found.

7.Which product offer nutritional content for your family?

Response Frequency Percentage

Maggie 22 44
Top ramen 17 34
Yippee 11 22
Total 50 100
Table 1.7 product offer nutritional content

Fig 1.9

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Interpretation:- health is our first concern over any other thing so many of them choose
Maggie over top ramen and yippee.

8. If your brand is not available in the market than what will you choose ?

Response Frequency Percentage

Top ramen 15 30
Yippee 21 42
My brand (Maggie as usual) 17 34
Total 50 100
Table 1.8 brand is not available in the market then what will you choose

Fig 1.10

Interpretation:- , if maggie is not available in the market people will choose yippee over
Maggie. After that top ramen

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Bibliography

https://deshicompanies.com/company-profile/maggi-brand-wiki-company-profile-founder-
noodles/

https://www.nestle.com/brands/culinary-chilled-frozen/maggi

https://iide.co/case-studies/marketing-strategy-of-maggi/

https://www.mbaskool.com/marketing-mix/products/16994-maggi.html

https://buildd.co/marketing/maggi-marketing-strategy

https://www.coursehero.com/file/p5q4jjj/Pricing-Pyramid-Value-Creation-The-Maggi-noodles-
take-up-60-of-the-market/

https://prezi.com/p/bvlmymfpenx_/marketing-maggi/

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 Appendix

1. Which brand of noodle do you prefer?

a) Maggie
b) Top ramen
c) Yippee
2. What size pack generally do you purchase ?
a) Small
b) Big
c) Family pack
3. How frequently do you purchase noodles?
a) Daily
b) Weekly
c) Monthly
4. Which media of advertisement influence you to purchase the noodles?
a) Television
b) Newspaper
c) Hoardings
d) Display
5. The quality of which product you find better?
a) Maggie
b) Yippee
c) Top ramen
6. After Maggie lead incident have you choose yippee or top ramen as alternative?
a) Yes
b) No
7. Which product offer better nutritional content for your family?
a) Maggie
b) Top ramen
c) Yippee

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8. If your brand is not available in the market than what will you choose?
a) Top ramen
b) Yippee
c) My brand ( Maggie as usual)

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