Professional Documents
Culture Documents
PROJECT REPORT
On
“A STUDY OF MARKETING STRATEGIES OF NESTLE IN
RESPECT OF MAGGI"
Submitted To
In the partial fulfillment of the requirement for the award of Degree of Master
in Business Administration (MBA)
MARKETING
(2022-2024)
Submitted By
ASHISH DIXIT
(MBA-2nd Year)
SAP ID:77221230931
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CERTIFICATE
2
DECLARATION
I “Ashish Dixit” hereby declare that the following project report titled “A Study of
Marketing Strategies of Nestle in Respect of Maggie” is my original authentic & I
have put in my efforts meticulously to make this project to come up to the
expectations and pragmatically viable. The data collected is primary, authentic &
properly analyzed by me to the best of my ability. I also assure that the research
work is completely original and have not been copied from any other resources
Date: -30-01-2024
SAP ID:77221230931
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ACKNOWLEDGEMENT
This project is not one person’s solitary effort. Its successful completion is the
result of many different people to whom I owe a debt beyond repayment.
Unfortunately, I cannot acknowledge my indebtedness to all these people, so I must
necessarily limit my thanks to those who have helped me directly in making my
project work an incredibly pleasant task and to give final shape.
I am also thankful to respondents who gave their precious time and co-operation.
I am also thankful to all the faculty members who guided and helped me very
kindly at each and every step whenever I required as they supported me with full
interest. Last but not the least I express my heartfelt gratitude towards my parents
as it’s because of their support that I was able to complete this project successfully
ASHISH DIXIT
(MBA)
(MARKETING)
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UNDERTAKING
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INDEX
Page.
S. No. CHAPTERS
No.
1 7-8
INTRODUCTION
2 9-36
COMPANY PROFILE
3 REVIEW OF LITERATURE 37
4 38
RESEARCH METHODOLOGY
5 39
OBJECTIVES OF STUDY
6 42
HYPOTHESIS
8 FINDINGS 54
8 BIBLIOGRAPHY 58
9 ANNEXURE 59-60
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INTRODUCTION OF MARKETING
communicating, and delivering value to customers and for managing customer relationships
in ways that benefit the organization and its stakeholders. Marketers with a stronger
marketing, on its role in directing the flow of goods and services to the consumer. In other
words, marketing is not viewed as the actual performance of such functions as production and
design but as the influencing and guiding of these activities through the role marketing plays
in decision making. Marketing may also be defined as the activities involved in recognizing
consumer needs, developing products and services to satisfy these needs, and creating and
then expanding a demand for these products and services. While marketing, especially in its
use of marketing research and in its borrowing from the behavioral sciences, does to some
extent employ the scientific method, it can never control all the variables or exactly repeat
experiments with the same results. Therefore, marketing is more of an art than a science.
Like practitioners of other arts, the 2marketing person relies on skill, judgment, and intuition
Definition of Marketing
“Marketing is the performance of business activity that directs the flow of goods and services
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INTRODUCTION TO THE TOPIC
The Project entitled “A study of marketing strategies of Nestle in respect 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. 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
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
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COMPANY PROFILE
INTRODUCTION OF NESTLE
Nestlé S.A. Is among the largest consumer packaged goods a company 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
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
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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
➢ GlaxoSmithKline's (GSK)
➢ Unilever's (HUL)
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
10
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.
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 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
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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
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 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.
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
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
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so dumped those products. Maggi Brand of products sustained recession in 2000 and 2001 in
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. Maggi is competing with Heinz Sauces and Ketchup, Knoor
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Soups, Kissin Sauces and Ketchup, Top Ramen, Sunfeast Pasta Wai Wai and 2 PM in
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 re launched with its original taste, and sustained
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
14
MARKETING STRATEGIES
limited resources on the greatest opportunities to increase sales and achieve a sustainable
competitive advantage.
designed to fill market needs and reach marketing objectives. Plans and objectives are
multi-year plans, with a tactical plan detailing specific actions to be accomplished in the
current year. Time horizons covered by the marketing plans vary by company, by industry,
and by nation, however, time horizons are becoming shorter as the speed of change in the
environment increases.
Marketing strategies are dynamic and interactive. They are partially planned and
partially unplanned. See strategy dynamics. Marketing strategy involves careful scanning of
the internal and external environments which are summarized in a SWOT analysis. Internal
environmental factors include the marketing mix, plus performance analysis and strategic
target market analysis, as well as evaluation of any elements of the technological , economic
marketing strategy is often to keep marketing in line with a company’s overarching mission
statement.
to identify business alternatives, establish challenging goals, determine the optimal marketing
mix to attain these goals, and detail implementation. A final step in developing contingencies
15
if problems arise in the implementation of the plan. Once of the greatest needs of managers of
business is to understand and develop marketing programs for their products and services.
Business success is based on the ability to build around the “marketing concept,” which
directs managers to focus their efforts on identifying and satisfying customer needs – at a
profit.
sponsor it. Often, the ad that generates record-breaking volume for a retail store one month is
repeated the following month and bombs. A campaign designed by the best ad agency may
elicit a mediocre response. The same item sells like hotcakes after a 30-word classified ad,
front stoops of homes during a rainstorm! Your marketing results can be improved through a
Putting the customer first is probably the most popular phrase used by firms ranging
from giant conglomerates to the corner barber shop, but the sloganizing is often just lip
service. The business continues to operate under the classic approach –“Come by this great
product we have created or this fantastic service we are offering.” The giveaway, of course, is
the word we. In other words, most business activities, including advertising, are dedicated to
solving the firm’s problems. Success, however, is more likely if you dedicate your activities
designed and written to solve a problem for understands and trusts. Marketing is a very
complex subject; it deals with all the steps between determining customer needs and
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THE MARKETING CONCEPT
The marketing concept rests on the importance of customers to a firm and states that:
❖ All company policies and activities should be aimed at satisfying customer needs.
❖ Profitable sales volume is a better company goal than maximum sales volume.
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MARKETING STRATEGY
small business can serve better than its larger competitors , and tailoring its product offerings,
prices, distribution, promotional efforts and services towards that particular market
segment(Managing the Market Mix). A good strategy implies that a business cannot be all
things to all people and must analyze its markets and its own capabilities so as to focus on a
TARGET MARKETING
Concentrating their marketing efforts on one or a few key market segments is the basis of
likely to buy the product.In other words, selling to heavy users before trying to develop
new users.
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TYPES OF MARKETING STRATEGIES
Marketing strategies may differ depending on the unique situation of the individual
below;
In this scheme, firms are classified based on their market share or dominance of an
➢ Leader.
➢ Challenge
➢ Follower.
➢ Niche.
Retailer
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MARKETING MIX
PRODUCTS OF MAGGI:
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
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MAGGI 2- MINUTE 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.
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
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with real vegetables 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!
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 healthy 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
Healthy Style
➢ Rich Tomato
➢ Mixed Vegetable
➢ Creamy Chicken
➢ Masala Noodles
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Chinese Style
Chef Style
• Cream of Mushroom
• Palak Corn
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
MAGGI SOUPS
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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 unique Hot & Sweet Tomato Chilli Sauce and Oriental Chilli Garlic sauce.
-The Indian style Tomato Chatpat Sauce Lip smacking tastes and vibrant packaging
➢ MAGGI PICHKOO:
Pichkoo is a small day 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 tamoto ketchup day pack which ensures that the fun goes on and on its
endearing name, packaging and great taste evoke a resounding reaction."New MAGGI
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➢ 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 Protein and Fibre. It has being launched in two delicious flavours ‘Masala Penne’
MAGGI PAZZTA
➢ COOKING AIDS:
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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
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 every day. 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
• 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
Bhuna Masala for Vegetables and Dal- a ready- mix of Onion and Tomato, fried in
refined oil. (Use it to make tasty dishes like Palak corn, Dal Tadka, Bhindi Masala, Urlai
Roast etc.)
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BHUNA MASALA
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
PLACE (DISTRIBUTION);
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EXAMPLE OF MAGGI PLACE (DISTRIBUTION)
PROMOTION OF MAGGI:
• They also sponsor various cookery shows to promote alternate usage of products.
• The utter confusion regarding the long-term strategy for Kissan brand was visible
• 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
28
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
• 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 “Ago
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PRODUCT LIFE CYCLE OF MAGGI:
INTRODUCTION:
• The Product launched keeping in mind the working women and childrens.
• 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:
• PROMOTION: Promoted with the tag line “Good to eat fast to cook”
MATURITY:
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Declining sales growth
• Saturated market.
• 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, and maggi cuppa mania.
• PRICE: Maggi still comes in very affordable prices starting from Rs. 5; they reduced the
quantity instead of increasing price.
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
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PRODUCT LIFE CYCLE
• 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
• Nestle also used the cultural base marketing in India as knowing the fact that Indian
• 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
32
• Maggi also successfully able to position its noodles in the minds of the consumers as the
• 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
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 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
➢ Continuous process innovation: Instant noodles were an entirely new category in the
country, but it was given an Indian twist. Maggi came in four variants: Masala, chicken,
33
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 danger of being classified junk food. It was then that it added the tagline,
economic category of consumers, “says Hedge 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 well being. 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-
34
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 Gujarati do not eat garlic and 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
➢ 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
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,” 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
35
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
• Introduced new products like atta noodles dal atta noodles cuppa mania.
• 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
something wrong with the formula that spoiled the taste. So the formula was changed
• 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.
36
REVIEW OF LITERATURE
REVIEW OF LITERATURE The Brand Maggi is strongly established as a Family Brand
with crisp brand equity in Indian market. The brand has always been known to have the first
movers advantage in the portfolios like noodles, ketchups, soups, sauce, etc. The parent brand
Nestle has been the strong symbol of family, shelter and warmth which brand Maggi has
innovatively capitalised. A nation-wide controversy flare up by the end of December
regarding the safety of Nestle‟ s Maggi Instant Noodles with Tastemaker after a presence of
impermissible level of lead was detected in the product pursuant to the sampling and testing
of Maggi by the Commissioner of Food Safety, Uttar Pradesh. In keeping with the
development, the FSSAI advised the Commissioners of Food Safety in various states to draw
samples of Maggi and get the same tested from authorized laboratories which resulted in 14
Indian States banning the sale of Maggi. The company is saying that the product is safe for
consumption and FSSAI is saying the product is dangerous for consumption. Both have been
defending one’s own side. These have created a dilemma among the consumers whether
Maggi should be consumed or not but, this row has impacted a lot in India and also will
impact in future also, till the final outcome will come. This is all about what began as a minor
labelling dispute that according to a local magistrate could have been settled with an INR
25000 fine, spiralled into Nestle’s worst public relations crisis to date in India. “Nestle
India’s result for the second quarter does not reflect the real picture, as adjustments are based
on mainly assumptions, and other expenses seem to be inflated,” said Sunita Sachdev, an
analyst with UBS Securities India Pvt. Ltd. “The Maggi issue will have a recurring impact,
and the next quarter is expected to give a better picture of where Nestle is heading. Also,
there is no clarity on when Nestle will be able to bring back Maggi that accounted for about
30% of its sales.” In a 15 June statement to the BSE, Nestle India had said that the recall and
destruction of Maggi noodles will cost the company about Rs.320 crore. With the Maggi ban
hitting sales of company’s other products as well, Nestle India’s new chief Suresh Narayanan
today said bringing the instant noodles brand back to the market is his top priority as he
sought to strike a conciliatory note with authorities. The company has also identified other
categories and looking at opportunities of introducing new products to overcome the
challenge that has resulted in the company recording its first quarterly loss in over three
decades.
37
RESEARCH METHODOLOGY
MEANING
The approach to the research is considered in this part, from the theoretical underpinning to
the collection and analysis of the data. It begins with the extent of the research to provide the
specific guidelines of studying. The next part is concerned with the method of the research
that refers to the data collection and analyzing which is used in the research.
As the objective of the research focuses on sales potential of the accessories, it will help the
company to increase its sales, which is the prime objective of the company at this time. The
research attempts to generate awareness among the people of various are a like kalamana
38
OBJECTIVES OF STUDY
39
METHODS OF DATA COLLECTION
➢ PRIMARY DATA
The primary data used in this report include the questionnaire in which the
noodles. For primary data, I proceeded with the drafting of the questionnaire. The
b) Questionnaire provides versatility and solutions can be obtained by just asking the
questions.
➢ SECONDARY DATA
This will include data collection from various websites and books. It also includes data from
company and other referral sites and sources. Secondary data was also collected personally
by me, which the company has furnished for the general public. The secondary data was
gathered with the help of various magazines, newspapers, journals, brochures and also
➢ DATA ANALYSIS
There are some features of analyzing data that need to be borne in mind when choosing the
method for analyzing the research. The questionnaires were prepared to explore the
awareness and the usage of the accessories, availing of after sales service and their
40
SAMPLE SIZE:-
Various areas of shanty nagar local area were covered in order to fill the
questionnaire. I interacted with 200 individuals in order to know about their awareness and
create need.
SAMPLE COMPOSITION
Owners of the various products of maggi. This consist of high and low end
customers.
RESEARCH DESIGN:
analyzing data.
SURVEY RESULTS
Brand Associations
Sources of Brand equity like brand association of Maggi as a Brand was foundhighest with
the age group of 10-25 and the product category associated with it wasthe noodles category
(see exhibit 1). Consumers in the age segment of 10-25 couldeasily relate Maggi to
noodles.In the income wise category the brand association was highest with the incomegroup
of 25k-40k were more than 40 respondents associated Maggi with noodles(see exhibit 2). The
implications from the findings discussed above seem that Maggihas good brand association in
terms of noodles. Consumers presume Maggi as
Noodles and the company’s philosophy of projecting the brand as noodles brand
seem to be viable in this regard.
41
HYPOTHESIS
Quick food styles are catching up fast because of more number of workingcouples, domestic
fuel crisis, non availability of reliable domestic servants and breaking up of joint family
system. Neither time nor patience to prepare theingredients and wholesome food in the house
itself, the high price of ingredients andready mix are also a significant factor responsible for
the spectacular increase in thedemand for maggi noodles products.
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-
(2) Time pressure and fatigue on the part of respondents and interviewer..
(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
42
DATA ANALYSIS AND INTERPRETATION
Interpretation: As per graph male customer having 74.5% weight age & and other and
43
1) Following table shows the customer age category.
44
2) Following table show the awareness about maggi.
No 200 11 5.5%
Interpretation: As per graph 94.5% respondent are aware about maggi product. and 5.5%
45
3) Following table shows which brand that comes in mind when we say the word
noodles?.
2 patanjali 200 10 5%
Interpretation: As per graph the highest (weighted 62.50%) we seen that when researcher
46
4) What comes first in your mind when you hear the word MAGGI?.
2 snacks 200 12 6%
Interpretation: As per graph 93% people are said that when they hear maggi that time they
47
5) What customer is frequently purchase in maggi product?.
4 Pickes 200 16 8%
5 cubes 200 14 7%
Interpretation: As per Graph 48% people are frequently purchase noodles product at maggi
category.
48
6) Where from customer get the information about maggi product?
5 Friends 200 18 9%
Interpretation: As per graph 56% customer are got the information from Television
advertising
49
7) What customer you prefer in maggi product?.
3 Packaging 200 14 7%
Interpretation: as per graph 42% people are prefer flavors in maggi product
50
8) How do you perceive Maggie products?
Interpretation: As per graph we saw that 45.50% customer think that maggi tasty n fun
eating function.
51
9) Which Maggie products in noodles category do you regularly buy?
Interpretation: As per graph 49% customer are regularly purchase Maggie masala brand.In maggi
product.
52
10) Do you perceive Maggie noodles as a healthy product?
2 No 200 26 13%
Total 100%
Interpretation: As per graph 87% customer think that maggi is healty product.
53
FINDINGS
1. 32 percent of the respondents prefer maggi 2-minute noodles.
2. Vast majority (85 percent) of the respondents have tasted all brands of nestleMaggi
noodles.
3.72 percent of the respondents purchase nestle maggi noodles for its quality withlow price.
4.60 percent of the respondents purchase nestle maggi noodles whenever needed.
54
CONCLUSIONS
On the basis of Data Collection & Findings proper analysis will be done & accordingly
Conclusion will be drawn regarding the Research Report. So, here I have made certain
1) As we seen that in local market genrally male customer is more active than male
customer. While survey female customer having a weighted 74.5% (with the
reference of table no 1)
2) Here, maagi product is popular in every group of customer but at the time of survey I
found that 25 to 30 age group is more active about purchase the product. (with the
reference of table no 2)
3) While survey I found that in local market 94.5% customer are aware about maggi
product. (with the reference of table no 3)
4) In local market researcher said noodle name genrally 62.5% customer are think
about maggi when they here noodle name. (with the reference of table no 4)
5) In local market researcher said maggi name genrally 93% customer are think about
noodles when they here maggi name. (with the reference of table no 5)
6) About customer point of view when researcher ask about which frequently product
customer purchase 48% customer are positively said about noodle (with the
reference of table no 6)
7) As we seen advertising make a big impact on customer mind. Effective marketing and
advertising always make a market for product. As seen 56% customer said that they
got maggi information through television advertising function. (with the reference
of table no 7)
8) At the time of purchasing maggi product 42% customer prefer that flavor function in
maggi product. (with the reference of table no 8)
9) As per table 22.5% customer are think that maggi product is hygines/ purity variety
product. (with the reference of table no 9)
55
10) At the time of survey when researcher ask about perceive towards the maggi product,
27.5% customer said that maggi product is good for health (with the reference of
table no 10)
56
SUGGESTIONS
1) Here maggi product is popular brand in local market as per conclusion 25-30 group
customer are frequently purchase the maggi product as suggestion that company
should be focus on such a advertising which focus on other age group such as children
and old age people. Make a powerful advertising which is frequently run on television
2) Noodles brand is one of the best and popular brand when researcher said maggi. It is
ideal word for maggi so. I suggest that throughout the maggi company focus other
3) As we seen that that 42% customer think that maggi product provide the flavor
function so I suggest that company also focus such nutrition function in maggi
4) As we seen 22.7% customer said that it is a healthy product. The main question arise
that why 22.7% now a day’s many organization such as fessai organization checked
all the detail which cause the product food safety so I suggest that maintain food
5) Attractive packaging & attractive effective marketing is always create the market for
the product. This function always beneficial for the product so I suggest that
6) Not last for the list effective marketing chain such as distributor, supplier, and retailer
always make a backbone for company sale. So I suggest that always focus the above
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BIBLIOGRAPHY
BOOKS:
CHABRA T.N. & GROVER S.K., Marketing Management, Dhanpat Rrai &Co.2017.
WEBSITES
www.wikipedia.org/maggi
www.goog;le.com/maggi_product
www.nestleindia.com
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ANNEXURE
QUESIONNAIRE
Date:_ / /
Name
Address
Yes
No
Q 3. What is the brand that comes to your mind when we say the word
noodles
Maggie patanjali Yepee Noodles Knor soup noodles
Q 2. What comes first in your mind when you hear the word MAGGI?
Noodles Snacks Fast Food None of these
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Q 4. What customer are frequently purchase in maggi product?
Cubes
Availability Packaging
60