A

RESEARCH PROJECT REPORT

ON

“RESEARCH METHODOLOGY ON
A STUDY ON NESTLE PRODUCT MAGGI”
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT

FOR THE AWARDOF THE COURSE OF

MASTER OF COMMERCE
(M.Com)

Submitted By
PRIYANKA SINGH
Roll NO. 2322020671165
Under the supervision
DR. G.K MITTAL

SHRI VARSHNEY COLLEGE, ALIGARH

AFFILIATED TO RAJA MAHENDRA PRATAP SINGH UNIVERSITY
G.T. ROAD ALIGARH-202001

2022-2023
 “RESEARCH METHODOLOGY”
ON
“ A STUDY ON NESTLE PRODUCT MAGGI”
 ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to my Prof. Girish

kumar Mittal as well as our principal Prof. Arun Kumar Gupta who gave
me the golden opportunity to do this wonderful project on the topic “
RESEARCH METHODOLOGY ON A STUDY ON NESTLE PRODUCT
MAGGI”
Lastly, I like to thank all my supporters who have motivated me to fulfill my
project before the timeline.
 DECLARATION

I PRIYANKA SINGH Roll no. 2322020671165 a student of Master of

Commerce declare that the project report titled “ RESEARCH METHODOLOGY
ON A STUDY ON NESTLE PRODUCT MAGGI ”is a original research work
undertaken by me and it has not been published anywhere earlier.

PRIYANKA SINGH
SHRI VARSHNEY COLLEGE, ALIAGRH
DATE: …………………….

CERTIFICATE
This is certified that PRIYANKA SINGH , who is submitting the project on “ RESEARCH
METHODOLOGY ON A STUDY ON NESTLE PRODUCT MAGGI ” for the award of Master of
Commerce to Raja Mahendra Pratap Singh University, Aligarh, is a record of bonafied research work
carried by him under my supervision and guidance .

I further certify that this report embodies candidate’s original work and has not been submitted to any other
university or institute for the award of any of any degree or diploma.

PROF. G.K MITTA

(Supervisor)
 CONTENT

Certificate
Declaration
Acknowledgement

CHAPTER-1
Introduction 1~25
 Executive summary
 Maggi brand in india
 Why specific brand positioning?
 Maggi brand extension
 Price and product development
 Products varients
 Market share
CHAPTER-2 25~38
Research methodology
Articles of economic times
Perception of maggi products
CHAPTER-3 39~42
Hypothesis & findings
SWOT analysis
STPD analysis
CHAPTER-4 43~48
Conclusion
Questionnaire
Bibliography
 EXECUTIVE SUMMARY

The report entitled “A research done on of Maggi Brand ” deals with the study of Maggi brand that
was launched in India in the year 1983, by Nestle India Limited, which became synonymous with
noodles. This research paper tries to find a solution to a real life problem of Maggi to launch its
products as a Healthy Product. The introduction provides the company background, operational & other
important information provided by the company which would assist in taking the decision for the right
brand extension strategy for Maggi.

In 1991 we opened our country to foreign brands. As per this liberalization policy many a foreign players
ventured into our country finding it a lucrative large mass market. India’s market potential lures foreign
companies. Many international companies that ventured in after 1991 are tallying their profits and losses
and wondering what the future holds for this market of 950 million people. But India is a diverse country
where different states have different consumption patterns and customs. Thus competition has become the
key word in today’s scenario. Till 1970’s and 80’s Maggie and Kissan were the major ketchup brands but
after liberalization Heinz entered Indian market which offered tough competition. These major giants are
also facing competition from many local players like Tops, Cremica and other local brands. Through this
project we have studied 4 P’s of marketing mix which includes PRODUCT, PRICE, PLACE and
PROMOTION for Maggi Tomato Ketchup.Product highlights various attributes of the product. Price helps
us in analyzing whether it is competitively priced or not. Promotions showcases which mode of promotion
is most effective and how do consumers respond to various celebrity endorsements. Place focuses on
efficiency of distribution network of Maggi Tomato Ketchup. We have also drawn out some inferences by
applying various statistical tools like ‘SIGN TEST’.Towards the end we have suggested some
recommendations as a group on how can we improve the marketing mix of the product.In 1991 we opened
our country to foreign brands. As per this liberalization policy many a foreign players ventured into our
country finding it a lucrative large mass market. India s market potential lures foreign companies.
Many international companies that ventured in after 1991 are tallying their profits and losses and
wondering what the future holds for this market of 950 million people. But India is a diverse country
where different states have different consumption patterns and customs. Thus competition has become
the key word in today s scenario.
Till 1970 s and 80 s Maggie and Kissan were the major ketchup brands but after liberalization Heinz
entered Indian market which offered tough competition. These major giants are also facing competition
from many local players like Tops, Cremica and other local brands. Through this project we have
studied 4 P s of marketing mix which includes PRODUCT, PRICE, PLACE and PROMOTION for
Maggi Tomato Ketchup. Product highlights various attributes of the product. Price helps us in
analyzing whether it is competitively priced or not. Promotions showcases which mode of promotion is
most effective and how do consumers respond to various celebrity endorsements. Place focuses on
efficiency of distribution network of Maggi Tomato Ketchup. We have also drawn out some inferences
by applying various statistical tools like SIGN TEST . Towards the end we have suggested some
recommendations as a group on how can we improve the marketing mix of the product.Nestl, which
world knows as cautious and conservatory company is a Swiss originated 140 years old Multinational.
The man at the helm is Swiss national Carlo Donati, an all inspiration and image of the company. His
philosophy is bottom line dictating top line based on delegation and decentralization. It resulted from a
merger in 1905 between the Anglo-Swiss Milk Company for milk products established in 1866 by the
Page Brothers in Cham, Switzerland and the FarineLacte Henri Nestl Company set up in 1867 by Henri
Nestl to provide an infant food product. The first Nestl factory to begin production in the United States
was opened in Fulton, Oswego County, New York.Nestl India Ltd. (NIL), the Indian subsidiary of the

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global FMCG major, Nestl SA, introduced the Maggi brand in India in 1982, with its launch of Maggi
2 Minute Noodles, an instant noodles product. Nestl India s business objective and that of its
management and employees is to manufacture and market the Company s products in such a way as to
create value that can be sustained over the long term for consumers, shareholders, employees, business
partners and the national economy.The product mix of Nestle India consists of milk products and baby
products (42.5%), beverages (29.3 %), processed foods (14.4 %), chocolate and confectionary (13.8 %).
Nestle India plans to expand business into similar and diversified product categories. The management
wants to leverage all the hard work done to establish a particular brand by extending the brand in some
other areas, where it sees an opportunity to make further money.
In other words to derive the maximum benefit from having established the brand Nestle did exactly,
what it wanted with one of their brandsMaggi.Objective of the study In this project, our main focus was
to analyze Tomato Ketchup taking into consideration the 4 P s of the marketing mix. To analyze
various product attributes of Ketchups & Sauces and its management in the current scenario. To study
the entire distribution mix of the product line. To critically comment on the pricing strategy adopted by
the company. Lastly our study will also focus on the various promotional aspect of the brand in lieu of
ketchup and also promotional mix of the product line.
All these objective were to analyze the performance of a particular product line of a brand followed by
the suggestions which we as a group have given in order to improve their performance in the future and
also learned various useful aspects which they have devised and implemented that has bettered their
performance.Scope of the Study The brand value of Nestle is $9.11bn which is approximately 5% of
the enterprise value as in August 2008(Source: The daily newspaper journal The Mint dated 17
September, 2008). According to this report, Nestle is reported to be among top 100 brands globally
positioned at 77th place with a brand rating of AAA . Last year, it was positioned at 87th spot. The
ketchup market in India is estimated to be around Rs 220 crore, largely dominated by Nestl s Maggi
that owns 47% of the market and the Kissan that owns 26%. Globally, it's only a blip- but India
consumes about 13,800 tons of ketchup a year. The Company launched a new variant of Maggi Tomato
Ketchup called Pichkoo .A higher-than-expected increase in raw material prices is posing a bigger
threat for the company as of now but past have proved that their innovative market strategies has
contributed a lot to their overall growth. Through our study we have determined the positive and
negative product attributes and thus determined the expectations of the product. This information can
be used by the company for further product modification. We also determined the acceptability and
adaptability towards introduction of new variants.
MAGGI Maggi is an over 100-year-old Nestl brand of instant soups, stocks, bouillons, ketchups,
sauces, seasonings and instant noodles. The original company came into existence in 1872 in
Switzerland, when Julius Maggi took over his father's mill. It quickly became a pioneer of industrial
food production, aiming at the improvement of the nutrition of worker families. Over time the scope of
MAGGI has been extended from a predominantly dehydrated cooking aid brand towards a general
savory food brand including many types of ready meals and also frozen food. This is in line with the
fact that people all over the world are cooking less and less from scratch. There is a wide range of
MAGGI products marketed worldwide in several countries. These include dehydrated bouillon,
granulated seasoning, soups, recipe mixes, snacks, frozen foods, etc.
In 1863 Julius Maggi developed a formula for bring added taste to meals, which later became lead to
the beginning of Maggi and convenience food products. MAGGI, known worldwide for innovation and
quality worldwide, understands that consumers are usually under great pressure in terms of time,
budget, cooking skills etc and therefore tries to establish a bond through giving ideas and advice that
make providing food easier. This results in the food provider being appreciated by family and
friends.Maggi as a brand is globally known in the product category of bouillon or soup cubes. Nestle
decided to introduce Maggi brand in India in the same product category. This soup was initially test
marketed in 1974 in Kerala. The response was not encouraging. Having then realized that the dietary
habits of Keralites are not conductive to the idea of drinking soup, test marketing of the brand

2
extended to Goa with the idea that Goan food habits have some similarity with western habits.
Fortunately for the company, the test turned out to be positive and Maggi became an accepted brand in
India. Maggi has faced lot of hurdles in its journey in India. The basic problem the brand faced is the
Indian Psyche. Indian Palate is not too adventurous in terms of trying new tastes.
That may be the reason why we are still stuck with Idli and Sambhar. So a new product with a new
taste that too from a different culture will have difficulty in appealing to Indian market. As of now,
Maggi is the brand for 2-minute noodles, Chinese noodles, ketchups and sauces for Nestle. As per the
latest available data, sales of Maggi 2-minute noodle in India are highest among all other Nestle
products worldwide. Analysts say Nestle, which faced one of the most challenging years in the FMCG
industry in 2003, has realised that unless it continuously innovates in an endeavour to provide value-
for-money to consumers, the company's bottomline may be impacted in the long run.TOMATO
KETCHUP The ketchup market in India is estimated to be around Rs 220 crore, largely dominated by
Nestl s Maggi that owns 47% of the market and the Kissan that owns 26%. Uptomid eightiesKissan
was the number one brand in Tomato Ketchup and around that tim the e competition came from Maggi
-- a Nestl s brand. With Maggi launching several varieties of Tomato Ketchup there was a growth in the
market. With Kissan and Maggie fighting neck to neck other smaller but established brands like Dipy's
from Herbertsons, Volfruit from Voltas, Noga of Nagpur Orange Federation and SunSip of Wimco
gradually disappeared from the market. Delmonte now has joined hands with Paoma Industries, the
manufacturers of Rasna Brands of soft drink concentrate and is expected to launch Tomato Ketchup
shortly.

3
 INTRODUCTION

The industrial revolution in Switzerland in the late 1800s created factory jobs for women, who were
therefore left with very little time to prepare meals. This wide spread problem grew to be an object of
intense study by the Swiss Public Welfare Society. As a part of its activities, the Society asked Julius
Maggi miller to create a vegetable food product that would be quick to prepare and easy to digest. Born
on October 9, 1846 in Frauenfeld, Switzerland, Julius Michael Johannes Maggi was the oldest son of an
immigrant from Italy who took Swiss citizenship. Julius Maggi became a miller and took on the
reputation as an inventive and capable businessman. In 1863, Julius Maggi came up with a formula to
bring added taste to meals. Soon after he was commissioned by the Swiss Public Welfare Society, he
came up with two instant pea soups and a bean soup - the first launch of the Maggi brand of instant foods
in 1882 - 83. Towards the end of the century, Maggi & Company was producing not just powdered
soups, but bouillon cubes, sauces and other flavourings. The Maggi Company merged with Nestlé in
1947. Today, Maggi is a leading culinary brand and part of the NESTLÉ family of fine foods and
beverages. Under the Maggi brand, which is today known worldwide for quality and innovation, Nestle
offers a whole range of products, such as packaged soups, frozen meals, prepared sauces and
flavourings.
More than 120 years of Delicious Meals

The MAGGI brand originated in Switzerland. It was founded in 1884, when Swiss
entrepreneur Julius Maggi had a vision: to make good-tasting and nutritious food
accessible to busy, working families. He invented a powdered pea and bean soup, to
provide nutritious, easy to prepare food for busy women who worked in factories and
didn't have time to prepare healthy meals.

This first MAGGI product was followed two years later with the invention of ready-to-

4
use soups and liquid seasoning. Nestlé acquired the MAGGI brand in 1947 and today, more than
120 years later, we strive to build on Julius Maggi's ambition of making delicious, quality and
nutritious food accessible to all.

Today the tradition continues around the world. Whether it’s MAGGI bouillons, soups, or
seasonings, consumers have come to know and trust the MAGGI brand for its high quality,
convenience and nutrition.
When you are hungry, you search for the easiest and a quick option to cook and fill your hunger.
And, then the first thing comes to your mind is "Maggi, yes your 2 minutes Maggi". Right??

We eat this very frequently but do not know the history of it. Let's explore a little more today about our
most favourite snacks, Maggie. Though it has faced some quality issue from June to October 2015,
once again came back with a bang in November 2015.

In this article will share insights how maggi instant noodles came to India and become household
names in the country where rice and roti is the traditionally preferred food item

Entry Of Maggi :

When Maggi instant noodles arrived in India in 1983 - the year when India lifted the cricket World Cup
for the first time - they instantly caught the nation's imagination

Nestle introduced maggi in Switzerland,mainly to serve working women, who were left with little time
to cook food due to the ‘Industrial Revolution’. Maggi Noodles were launched in India, targeting the
same segment of working women. Their positioning was a “Convenience Product” and an alternative
for Meals and Dinner.

Failed to understand Consumers taste :Nestle taught to capture the Indian market as the women
population is high among the other countries. But it failed miserably as the people had a strong routine
to rice and roti and hard to break.Maggi was not competing against any competitor products, but
against consumer’s traditional behaviors

5
Nestle understood that spending huge money on advertisements would not change the consumer’s
mind. They decided to do detailed research to understand Indian consumers.

Getting the pulse :

Nestle found that it's hard to break the daily routine food habits for lunch and dinner of Indian
consumers and the company started looking for occasions, where habits would be weak as this
process of change might be relatively easy to initiate

They also observed that when children came home in the evening after school, they were generally
hungry and women had to cook something fast and give them. (Evening Snacks). The mothers were
facing a problem here and it was a major pain point

Nestle after User research and Market research, figured out that “Maggi” has to be promoted as “in-
between” meals product and an alternative to “Evening Snacks”

Nestle also identified that Children liked the taste of Maggi Noodles. So, Nestle changed the target
segment from Working Women to “ Children”. They were the ones who were ready to accept tasty
food(Their behaviours are not strong yet like adults), compared to older people who were still
reluctant and attached to their habits.

Then comes AD Campaign :

After getting the target audience, nestle came up with

Maggi’s advertisements of “Mom, I’m Hungry and Mom says “Bas 2 minute” on TV acted as a
huge trigger among the children and mothers.

2 minutes cooking” added a huge selling factor, mothers felt easy to cook in less time for their
children to serve as snacks without much effort.

Nestle leveraged its existing distribution channels and made maggi noodles available in all nearby
stores. Company distributed free maggi samples in schools to habituate the habit among children’s.

Maggi created emotional connect among childrens in meeting their hunger and happiness in eating
maggi.

After understanding the Indians love towards masala,it even launched the different masala flavours
to come close to the consumers.

MAGGIPREUNERS – A LIVELIHOOD FOR MANY :

Maggi has not only became household snack item, it has become a business and created
maggiprenuers whos sell maggi in different ways and make their livelihood. I think Nestle might
have not done that many experiments in inventing maggi. Now we will get the maggi in each and
every corner of the country right from the kanyakumari to the highest heights of Himalayas.

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 HAPPINESS AND MEMORIES :

Maggi is the best noodle brand in India as it is loved by people of age groups. When I observed what
makes Maggi to connect is Happiness and Memories we get as many of us having a hot maggi after
school and late night maggi trying adding our own masalas as we dont get tasty food in hostels. The
ease with which Maggi can be made is amazing with friends

History
The MAGGI brand was initially originated in Switzerland in 1884. It was formed with a purpose by
Swiss entrepreneur Julius Maggi who had the vision to make food with good taste and nutritious and
should be accessible to busy and working families especially for women who are working and do not
get time to prepare healthy food. Initially, he invented a powdered pea and bean soup, to provide
nutritious and easy to cook food.

In 1947, Maggi was acquired by Nestle and now after 120 years, we strive to build on Julius Maggi's
creation of making delicious, quality and nutritious food which are accessible to all.

Maggi Noodles
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%.

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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.

Brand MAGGI has started “Simply Good” initiative, in line with Nestlé’s global commitment which
is firmly embedded in our Purpose and Values which is to enhance quality of life and contribute to a
healthier future.
In India the Simply Good journey has started with everyone’s favourite MAGGI 2-Minute Masala
Noodles fortified with iron which will now provide consumers 15% of their daily Iron requirement.
Iron deficiency is one of the leading micronutrient deficiencies in our country. Not many people are
aware of how stark the problem is but as per National Family Health Survey, 2015-16 more than half
the women and children in India are iron deficient. Contrary to popular belief that iron deficiency is
prevalent only in rural parts of the country we see that the issue is equally spread across urban and
rural geographies
MAGGI Noodles is a part of about 70% urban Indian households and with more than 2.5 Bio serves
that are consumed by people every year (2x Indian population) it can be an ideal carrier for iron
fortification and thus contribute to closing the gap of Iron deficiency.
With this objective we have added Goodness of Iron in every pack of MAGGI 2-Minute Masala
Noodles. We have also set up a helpline number for our consumers where they can receive all
necessary information about significance of iron and iron rich foods which they should incorporate
in their diet.

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 MAGGI BRAND IN INDIA

Maggi Comes to India – teething troubles Maggi noodles was launched in India in the early1980s.
Carlo M. Donati, the present Chairman and Managing Director of Nestle India Ltd, brought the instant
noodle brand to India during his short stint here in the early eighties. At that time, there was no direct
competition. The first competition came from the ready-to-eat snack segment which included snacks
like samosas, biscuits or maybe peanuts, that were usually ‘the bought out’ type. The second
competition came from the homemade snacks like paratha or sandwiches. So there were no specific
buy and make snack! Moreover both competitors had certain drawbacks in comparison. Snacks like
samosas are usually bought out, and outside food is generally considered unhygienic and unhealthy.
The other competitor, ‘homemade’ snacks overcame both these problems but had the disadvantage of
extended preparation time at home. Maggi was positioned as the only hygienic homemade snack!
Despite this, Nestlé faced difficulties with their sales after the initial phase. The reason being, the
positioning of the product with the wrong target group. Nestle had positioned Maggi as a convenience
food product aimed at the target group of working women who hardly found any time for cooking.
Unfortunately this could not hold the product for very long. In the course of many market researches
and surveys, the firm found that children were the biggest consumers of Maggi noodles. Quickly they
repositioned it towards the kids segment with various tools of sales promotion like colour pencils,
sketch pens, fun books, Maggi clubs which worked wonders for the brand.

Journey of maggi in india

From being an instant snack to becoming a go-to food, the story of your favourite noodle.

“Mummy Bhook Lagi- Bas 2 Minute” Is there anyone who doesn't recognize this tagline? In India,
Maggi does not need any introduction. Whenever we talk about midnight cravings, Maggi is the first
thing that comes to our mind. We all have fought for the larger share with our siblings. Though it was
introduced as a snack for kids, this brand of instant noodle has reached the taste bud of every age
group. From YouTube videos to Maggi points, this Nestle brand has been ruling our market for more
than twenty years..

Till now you would think the journey of this Switzerland- born brand would have been very easy but
Nestle has made a lot of effort to make it popular in India. In the initial years, when the company
introduced Maggi in the market, it didn't seem to make the required customers. But with the changing
eating habits of people, after 1991, the doors of Indian kitchen were opened for the ruling brand of instant
noodle. Since then, the company has used a lot of strategies and techniques to attract customers such as
choosing Amitabh Bachchan for endorsing the product and targeting Indian mothers for attracting
customers.

Everything was going smooth until 2015, when the stardom of India’s favourite go-to meal was hit by
Food Safety and Standards Authority of India (FSSAI), as high measures of lead were found in the
product and the No MSG mark was not as per the security guidelines. Its market share fell on the ground
within no time with zero availability as it was labelled hazardous by FSSAI.

But within one year in 2016, it came back with a two months prior campaign called #MISSYOUMAGGI
and stated that all samples of Maggi Noodles have been cleared by National Accreditation Board and

9
Calibration Laboratories (accredited labs for testing). And people welcomed it with open hearts. Today,
Maggi has earned the same brand image and value it had before. More than three-fourth of its products
are manufactured by keeping Indian culture in mind. Maggi holds about twenty- five per cent of Nestle's
entire profits in India and its annual turnover is beyond 1000 crores.

Many other brands have tried and are still trying to compete with Maggi but the loyalty of customers has
been locked with Maggi. Apart from instant noodles, the company has also launched products under the
brand, which include Soup, Maggi Kappa Bhuna Masala, Masala-ae-Magic, Mania Instant and more.
From being a two-minute snack to becoming a go-to experiment ingredient like Maggi Pizza and Maggi
Samosa, the forty-year-old brand has ruled our palate and well as heart.

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 WHY THE SPECIFIC BRAND POSITIONING?

Maggi was positioned as ‘2-minute noodles’ with a punch line that said ‘Fast to cook! Good to
eat!’ And this gave the implied understanding to the consumer that it was a ‘between meals’ snack.
The company could have easily positioned the product as a meal, either lunch or dinner. But, it
chose not to do so, because the Indian consumer mindset did not accept anything other than rice or
roti as a meal. Hence trying to substitute it with noodles would have been futile. The firm did not
position it as a ‘ready-to-eat’ meal either, as the housewife prefers to ‘make’ a meal for her kids
rather than buy it for them. And if she can make it in two minutes with very little effort, then
obviously it’s a hit with her! What’s more, if kids also love the taste, the product is as good as sold!
So the ‘2-minute’ funda coupled with the ‘yummy taste worked!

BRAND STORY

Launched in 5 flavours initially – Masala, chicken, Capsicum, sweet & sour, and Lasagna –
Maggi had to fight hard to be accepted by Indian consumers with their hard-to-change eating
habits. The packaged food market was very small at this time; Nestle had to promote noodles as a
concept, before it could promote Maggi as a brand. It therefore devised a two-pronged strategy to
attract mothers on the ‘convenience’ plank and lure kids on the ‘fun’ plank. Gradually, the market
for instant noodles began to grow. The company also decided to focus on promotions to increase
the brand awareness. In the initial years, Nestle promotional activities for Maggi included schemes
offering gifts (such as toys and utensils) in return for emptynoodles pack.
According to analysis the focus on promotion turned out to be the single largest factor responsible
for Maggi’s rapid acceptance. Nestle\’s Managers utilized promotions as measured to meet their
sales target. Gradually, sales promotion became a crutch for Maggi noodles sales. Later many of
the Maggi’s extensions also made considerable use of promotional schemes. The focus of all
Maggi’s extensions was more on below the line activities rather than direct communication. In
addition to promotional activities, Maggi associated itself with main stream television programme
and advertised heavily on kids programme and channels. After its advertisements with taglines like
“mummy bhookh lagi hai, bas do minute” and fast to cook good to eat Maggi’s popularity became
highly attributed to its “extremely high appeal to children”. As a result, Maggi’s annual growth
reportedly touched15% during its initial years.

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 MAGGI’S BRAND EXTENSION

In 1998, Nestle launched Maggi’s first brand extension, Maggi soup. At this stage, there was no
organized packaged soup market in India. Nestle planned to create a market for packaged soup as it felt
the category had a lot of potential. However, according to analyst, the company had introduced soups
only to cash in on the Maggi’s brand name, and was never very serious about the segment.

In 1993, “Sweet Maggi”, the first variant of Maggi noddles was launched. The company supported the
launch with a huge advertisement outlay that amounted to 75% of the total yearly expenditure on the
Maggi brand. However, the product failed to generate the desired sales volume and Nestle was forced to
withdraw it. At theend of the year, Maggi noodles were generating sales volume of around 5000 tons and
remained a loss making proposition for Nestle. To boost sales, Nestle decided to reduce the price of
Maggi noodles. This was made possible by using thinner and cheaper packaging material, the company
also introduced “money saver multi packs” in the form of 2-in-1 pack and 4-in-1 packs. As a result
volume increases phenomenally to 9700 tonnes in 1994 and further to 13000 tonnes in 1995. Maggi’s
euphoria was, however, short lived, as sales stagnated in 1995 at the previous year’s level. With soup
business being threatened by a new entrant “Knorr soups” launched in 1995, offering 10 flavours against
Maggi’s 4 the company started rethinking its strategies towards the soup market. In order to stretch
Maggi’s brand to include Indian ethnic foods the company tied up with a Pune based cordial foods to
launch pickles under the year 1995. The company also tied up with Indian foods fermentation (IFF), a
Chennai based Food Company to market popular south Indian food preparation such as sambher, dosa,
vada and spices in consumer packs in Dec 1995. The company reportedly saw a lot of untabbed
potential in the market forready to use south Indian market.

In 1996, products from these two ventures received lukewarm response from the market; sales were rather
poor in the regions in which they were launched. Analysts attributed the failure of these Maggi extensions
to the fact that Nestlé seemed to be particularly bad at dealing with traditional Indian product categories.
Maggi noodles performed badly in 1996. Despite slow sales in the previous two years, Nestlé had set a
sales target of 25,000 tonnes for the year. However, Maggi couldn’t cross even 14,000 tonnes. Adding to
the company woes was the failure of Maggi Tonight’s Special, a range of cooking sauces aimed at
providing ‘restaurant- like-taste’ to food cooked at home. The range included offerings such as Butter
Chicken gravy and tomato sauce for pizzas.

Understanding these failures, and buoyed by the fact that the Maggi brand finally broke even in 1997,
Nestlé continued to explore new options for leveraging on the brand equity of Maggi noodles. The
company realized that the kids who had grown up on Maggi noodles had become teenagers by the late
1990s. As they associated the product with their childhood, they seemed to be moving away from it. To
lure back these customers and to explore new product avenues, Nestlé launched ‘Maggi Macaroni’ in July
1997. According to analysts, Maggi Macaroni was launched partly to deal with the growing popularity of
competing noodles brand Top Ramen. Maggi Macaroni was made available in three flavours, Tomato,
Chicken, and Masala. The company expected to repeat the success of Maggi noodles with Maggi
Macaroni. As with most of its product launches, Maggi Macaroni’s launch was backed by a multi- media
advertisement campaign including radio, television, outdoors and print media with the tagline, ‘Tum Roz
Baby. The product’s pricing, however, proved to be a major hurdle. A 75-gm Maggi Macaroni pack was
priced at Rs 11, while a 100-gm noodles pack was available at Rs 9. According to analysts, Nestlé
failed to justify this price-value anomaly to customers, who failed to see any noted value addition in

12
Maggi Macaroni (packaging and flavour variants were similar to those of Maggi noodles). In addition,
customers failed to see any significant difference between Maggi Macaroni and the much cheaper
macaroni that was sold by the unorganized sector players. The biggest problem however was the taste of
the new product. Since macaroni is thicker than noodles, Maggi Macaroni did not absorb the tastemaker
well and consequently did not taste very good. The interest generated by the novelty of the product soon
died out and sales began tapering off. Eventually, Nestlé had to withdraw Maggi Macaroni completely
from the market.
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 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 13,000-14,000 tonnes.

13
 PRICING AND PRODUCT DEVELOPMENT

It was at this point in time that Nestlé decided to change the formulation of Maggi
noodles. The purpose was not only to infuse ‘fresh life’ into the brand, but also to save money
through this new formulation. The company used new noodle- processing technology, so that it
could air-dry instead of oil-fry the noodles. The tastemaker’s manufacturing process was also
altered. As a result of the above initiatives, costs reportedly came down by 12-14%.
To cook the new product, consumers had to add two cups of water instead of one-and-a-half
cups. The taste of the noodles was significantly different from what it used to be. The customer
backlash that followed the launch of the new noodles took Nestlé by surprise. With volumes
declining and customer complaints increasing, the company began to work on plans to
prelaunch ‘old Maggi’ to win back customers.
In addition, in 1998, Nestlé began working out a strategy to regain Maggi’s position in the soup
segment. To counter the Knorr threat, the company relaunched Maggi soups under the ‘Maggi
Rich’ brand in May 1998. The soups were not only thicker in consistency than those produced
earlier, the pricing was also kept competitive and the packaging was made much more attractive.
However, Knorr took Nestlé by surprise by launching one- serving soup sachets priced as low as
Rs 4. HLL too launched two-serving sachets ofKissan soup priced at Rs 7.
As Maggi did not have any offerings in this price-range, it lost a huge portion of its market
share to Knorr.The prelaunch prompted market observers to compare Nestlé’s move with US
soft drinks major Coca-Cola’s ‘New Coke’ fiasco. However, the company disagreed, “It’s a hard-
5 nosed strategy that mixes nostalgia with the consumer’s voiced preference for the product it has
been bred and rough up on.
The reintroduction is Nestlé’s acknowledgement of the loyalty of the Indian mother and the child
to the original product.” By May 1999, Nestlé’s decision to bring back the ‘old Maggi’ seemed to
have paid off. Two months after the prelaunch, the monthly average sales of Maggi noodles n
the northern region rose 50% in comparison to the previous year.
In July 1999, ‘Maggi’ the brand, was promoted as the biggest brand in Nestlé’s portfolio of
brands in India, overtaking brands such as Nestum and Cerelac. Nestlé believed that Maggi had
immense potential as it was a very ‘flexible’ brand under which regional variants could be
introduced to meet various market needs. Company sources claimed that with reasonable price
points and innovative products, Maggi could emerge as a top brand and a major growth driver
for the company. To further support the brand,
Pricing Pyramid:
Value Creation:The Maggi noodles take up 60% of the market despite a high price tag. We
canconclude that our consumers are to an extent price insensitive in case of an increase. Our offer
will beredesigned with a focus on a healthier product through labels such as “all natural”, “no
additives”,“extra fibers”. We will maintain the different variations mentioned in the case study. As
such, oursegmentation strategy remains unchanged.

14
Price structure:our pricing strategy takes into account metrics and fences, as noodles will be sold
bythe unit, with a consistent price per pack. Additionally, Maggi can offer more value for the
consumerby introducing economy and family packs “for sharing” with a small discount to
guarantee a certainvolume in sales.
Value Communication:the marketing mix, further detailed below, consists of strong
communicationof the trustworthiness of Maggi. We will heavily invest in advertising, social media
presence, andbrand associations to rebuild the Maggi image.
Pricing Policy:Maggi aims to be a product-quality leader, combining quality and premium prices
withan intensely loyal customer base. The value map shown in Exhibit 1 displays our desired
position
following this objective.
Price setting:Maggi will be selling its rebranded for 29 rupees. A price ending in 9 will maintain
theimpression that the noodles are still in the 20 range, while showing an increase significant
enough totranslate, thanks to our communication tools, as active efforts to increase product quality.

Product life cycle of maggi

Maggi has been every Indians comfy food for more than 3 decades! Remember the late-night
Maggi? “Pahaad-wali” Maggi? Or simply the snack-time comfy Maggi? Although, have you
ever thought about how Maggi evolved as a product over the years? Through this article, lets
understand the Product Life Cycle of Maggi.

15
Nestle launched Maggi in the year 1982 as the first instant noodle brand in India. Although it
was difficult to position Maggi in its early years, it can easily be said that it has positioned itself
so strongly in the minds of the consumer that it has become a brand in itself.
The Maggi brand originates from Switzerland where in 1886, Julius Maggi created a recipe of
flavours to bring added taste to meals. This marked the beginning of Maggi brand and its
convenient products. In the year 1947, Nestle acquired Maggi.
Let us understand in detail, what are the 5 stages of product life cycle? And see the product life
cycle of Maggi, our favourite instant noodle brand!

What are the 5 stages of product life cycle?

The concept of product life cycle cannot be explained more appropriately than the image given below.
Every product like a flower bud is initially born and goes through the development stage and is then
introduced to the world. In the middle picture, the product is in its highest selling phase which is the
maturity phase and then eventually starts declining and is removed from the shelf.
The product life cycle of a product is associated with marketing and management decisions within
business, according to this concept, all the products go through 5 primary stages in their
life: development, introduction, growth, maturity, and decline.
It is measured on two parameters, sales and time, with time the sales of the product initially increase
reaches the maximum and starts declining until it is completely removed from the shelves.

Development
Referred to as the “Valley of death”, the development stage is the first stage in the product life cycle of a
product where the costs keep accumulating for making the product without any corresponding revenue.
The timeline and expense of this stage differs with different products, some products require large
capital investment in the development and trial of the product in this stage and other products might not
need a lot of investment at this stage.

16
Development stage is very ambiguous and is risky for outside investors, therefore attracting very limited
number of outside investors placing the financial burden on the company itself. Existing companies can
survive in this case, but gets very difficult for a start up to survive in this valley of death.

Introduction

The introduction stage is launching the product in the market, trying to develop a market for the product
and building product awareness. It is the most crucial stage for the survival of the product.

In this stage, it is observed that the product has low sales, high costs per customer as the product price
might be high to recover the cost associated with the development phase of the product life cycle, and
funding of this phase is generally through an investor or lender.

Growth

When a product enters the growth phase the sales and profits of the product take off, thereby reducing the
cost per customer. Increased number of customers lead to increase in sales and profit and seeing the
opportunity in this segment, more competitors start entering the market.

In the growth phase, the product is accepted by the customer and the company through innovative
product design, product differentiation, etc., try to increase their market share.

Maturity

As the competition gets more intense in the growth and maturity stage, the company tries to differentiate
its product from the competitors.

At this stage, we see the peak point in terms of sales and the product reaches a saturation point after
which the growth in sales becomes constant or in some cases starts declining.

In this phase, the cost per customer is the lowest, profits are high and the product owns a larger part of
the market share. Companies usually do not need additional funding at this stage.

Decline

The decline stage of a product life cycle is associated with decrease in revenue due to market saturation,
high competition, and changing customer needs.

Companies at this stage can either choose to discontinue the product, use the resources of this product to
make other company products, sell the manufacturing rights to some other business, etc.

This stage is the last stage in the product’s life cycle, after which the product’s shelf life ends.

Now that we’ve covered what the five steps of product life cycle are, let’s get back to the product life
cycle of Maggi. In this article we will read about the 4 main phases of the product life cycle of Maggi,
i.e., Introduction, growth, maturity, decline.

17
 Introductory stage in product life cycle of Maggi

Popular in many countries like Australia, New Zealand, South Africa, India, Nestle wanting to explore
the potential for such instant food/noodle brand in India, launched Maggi in the year 1982. It took
several years and lot of money for Nestle to establish its noodles brand in India.

When Maggi noodles was launched in India it had segmented the based on age and urban families
targeting kids, youth and office goers positioning itself as fast to cook, 2 minute noodles, with the
tagline of “taste bhi, Health bhi”. Positioning however was not an issue, as no instant noodle had been
launched in India, Maggi was the first one.

In the initial stages, Maggi had high failure rates, frequent product modifications(to adjust to Indian
consumer), high marketing and product cost as they were trying to build product awareness. With a lot
of ups and downs and high failure rates, Maggi survived the introductory stage.

Let us now see the next stage in the product life cycle of Maggi, the growth stage.

Growth Stage in Product Life Cycle of Maggi

Around 1985, the demand for Maggi had increased tremendously in India recovering their
developmental costs and increasing the sales rate. Maggi remained the monopoly in the Indian Market
till 1990, after which Top Ramen entered the market reducing the market share of Maggi a little.

10 years back Maggi had 50% of the market, In order to increase its sales again, Maggi introduced a
new flavour in 1997 which wasn’t well accepted by the consumer, thus in 1999, Nestle re-launched its
old flavour of Maggi, getting back on track in terms of sales.
Over the years, Nestle has also introduced many products under the Maggi brand, like the ketchups,
soup, oats, pasta, more noodle flavours etc.

18
Let us now see the next stage in the product life cycle of Maggi, the Maturity Stage.
Maturity Stage in Product Life Cycle of Maggi
During it’s maturity stage, Maggi’s sales were at peak, production costs were low and profits were high.
In 2003, Hindustan Unilever Limited (HUL) was all set to take on Nestle’s Maggi by launching a new
category of liquid snacks under it’s food brand Knorr Annapurna.
Priced aggressively at 5Rs, the new product called Knorr Annapurna Soupy Snax was made available in
4 varieties. Like Maggi, it had a similar target market and positioned it in a similar manner.
Also, Maggi faced tough competition from Top Ramen. That led to decline in sales, signifying that
Maggi had entered the maturity stage.
Maggi reaching the peak and seeing the sales rate declining launched a series of new products. While
keeping price aggressive at 5 Rs and made the distribution channel more intensive to encourage their
product over the competitor.
Let us now see the last stage in the product life cycle of Maggi, the Decline Stage.
Decline Stage in Product Life Cycle of Maggi
There were certain hiccups in the way- like the banning of Maggi. Due to high lead content almost led
us to believe that our favourite noodle brand is now off the shelf. And may be reached its last phase, i.e.,
the decline stage.
Read the entire story of how Maggi escaped its death here!
But Nestle invested more in the research of Maggi and took corrective actions. For example, Internal
employee engagement, increased campaign, more activities on social media, and revived back from the

19
near disaster.
Talking about the current scenario, After the world was hit by the Corona Virus Pandemic In the year
2019, Maggi sales shot up by 25% as consumers stayed home and stockpiled instant noodles.
With increase in total and domestic sales by 8.1% and 8.5%, respectively, Maggi’s revenue in the year
2020 and 2021 is continuing to increase. Maggi therefore escaped its death and climbed back from the
decline stage and recovered well.
These were the most important stages in the product life cycle of Maggi!
Conclusion
This was my take on the product life cycle of Maggi. In this article we talked about What are the 5
stages of product life cycle? Namely, the Development, Introduction, growth, maturity and decline
stages.
We also discussed in detail the Product life cycle of Maggi. The Introductory, growth, maturity and
decline stages in product life cycle of Maggi.
Maggi even today is the most liked and valuable instant noodle brand. And now has expanded its reach
into other diverse flavours and products.

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PRODUCT VARIENTS
15 Variations Of Maggi You Would Love To Make

Maggi-the staple food for every young Indian living in a hostel or at home! Easy to cook and the
fact that it's so affordable is what makes it so popular. Maggi noodles come in a variety of price
bracket ranging from Rs 5 to Rs 40. Over the years Maggi has been the Mecca for every food
experimentalist, be it adding vegetables to it or stuffing it in a roll. Here are 15 ways in which one
can cook some delish Maggi!

1. Masala Maggi

Just buy an extra packet of Maggi Masala and you are good to
go! Make the usual Maggi and add that extra packet.
P.S. - Add less water than usual.

2. Egg Maggi

Probably everyone has tried this variation at least once in his

life time. While making Maggi, drop an egg or two. Whisk
vigorously to get the yummiest Maggi ever!

3. Egg Bhurji Maggi

Another egg variation could be Egg Bhurji Maggi. Make

Maggi the usual way in one burner and in the other burner add
a dash of oil/ghee/olive oil, drop some chopped or roughly cut
onions. Then add the egg and the usual spices (red chili
powder, turmeric, crushed black pepper). Toss Maggi and
eggs together and you are done.

4. Bread Maggi

Every hosteller or student who has studied outside his

hometown knows about this. Make Maggi the usual way and
place it in between two toasted slices of bread. P.S. - Go for
brown bread while making this and a piece of advice-rub butter
and a clove of garlic on the toast for the zingy taste.

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 5. Soupy Maggi
This is not as easy as it looks like. A bit tedious to make, this is a desi
variant of Minestrone basically. Chop carrots, celery, onions and vegetable
stock. Fry the veggies in regular oil. Add vegetable stock, and simmer till
half in volume. Add the Maggi and the Masala. Cook till the Maggi is done.
Om nom nom!

6. Chicken Maggi

This is not the usual Chinese vendor noodles with

chicken. This is completely desified. Get tandoori Chicken from
your local restaurant. Separate the meat from the bones. Make
Maggi and add chicken. Tandoori Maggi, anyone?

7. Prawn Maggi

Since fresh prawn is not available everywhere, buy a packet of frozen

prawns, which is easily available in any super market. Fry the prawns and add it
to the Maggi.

8. Tomato Maggi

The regular way of doing is adding chopped

tomatoes in the Maggi but if you want to tinkle your
taste buds use tomato concassé.
P.S. - Tomato concassé can be made by
slitting tomatoes and dropping them in simmering water
for a minute or two. De-skin the tomatoes and remove
all the seeds. Chop the de-skinned tomatoes; add white
pepper and salt. What you
get is tomato concassé.

9. Salsa Maggi

Roughly chop tomatoes, onion, green coriander and cucumber.

Add lemon juice, crushed black pepper and salt. Drop in the cooked Maggi and
mix all together. This is heaven in your mouth.

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10. Cheese Maggi

Another very popular and most experiment ingredient on Maggi is

Cheese. Be it Mozzarella or Cheddar, grate it on the Maggi after
its cooked and heat it in the microwave for two more minutes.
This is the yummiest form of Maggi ever that you will taste.

11. Short Crust Maggi

Another one of the tedious Maggi making method is Short

Crust Maggi or Maggi Pie. For Short Crust - Rub butter
and refined flour till bread crumbs consistency. Add cold
water to form tight dough. Place it in a small round tin
container and make sure the dough covers the inside of the
tin completely. Place the cooked Maggi in the centre of
the tin. Grate cheese from the top. And heat it in the oven
for 15 to 20 minutes.

12. Corn & Capsicum Maggi

This one is for those who cannot handle spicy food at all. Boil
the Maggi and put boiled corn in it. Add salt and white pepper
and cheese. Cook until it's all slimy. Garnish it off with baked
capsicums.

13. Left Over Maggi

This is probably the best variation for all the loners. Add
any gravy from last night in the Maggi - be it the Kadai
gravy, Shahi gravy or Korma gravy. Boil the Maggi
without the Maggi Masala.

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14. Kebab Roll Maggi

Cook Maggi the usual way. Slit a cooked seekh kebab

vertically. Add the cooked Maggi and roll it up in a thin
cooked Indian bread or 'roomali roti'. Add ketchup or mustard
or whichever your pallet finds suitable. And voila! Your kebab
roll Maggi is ready.

15. Deep Fried Maggi

All you need is a deep pan filled with vegetable oil. Add
cooked Maggi in the pan. Be very careful while doing so
because the oil might splash back. Take out the Maggi
once it start changing its colour with the help of a
strainer and put it on a kitchen towel. Sprinkle some
'chaat masala' over it and what you have is tasty crispy
deep fried Maggi.

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Maggi's Market Share in Noodles Category

20%

Maggi

Others
80%

RESEARCH METHODOLOGY
OBJECTIVES
1. To understand the influence of Maggi as a brand on consumers mind set.
2. Sources of Brand equity of Maggi like Brand awareness, Brand image, Brandassociation, Brand
recall
3. To understand the Brand performance of Maggi products.
4. To understand Brand Imagery, Brand Quality perceived by customers, Brandcredibility,
consideration, superiority and feelings.
5. Brand Extension of Maggi in terms of product diversity.
6. Analyse the repositioning of Maggi brand as a “Healthy product” and theconsumers
perseverance towards the same.
Research Methodology
Research Methodology is the activity of collecting the information and data, with the intention of doing the
research. Methodology may include different tools like research objective, sampling, sampling methods etc.
It is a board area which covers the most aspects of research.

Research Design
Research design states the overall strategy adopted by the researcher where by overall components of the
study are set out in the logical way. That effectively presents the problem of the study moreover it constitute
the collection of data.

Sampling Design
It identify that which type of sampling method we are using for our study i.e. Probability sampling or Non-
Probability sampling.
In my study I’m using non-probability sampling under which convenience sampling method is been used.
Convenience sampling: Where we find ourselves comfortable or convenient to get the sample.

Data Collection
It is most important part of any research. Generally Primary and secondary ways are available for data
collection.

25
I have used primary data and secondary data.
Sample size : 100 respondents of all ages and groups
Instruments used: Structured Questionnaire
Research methodology: Survey method
Analysis and Interpretation

Objective: To study customer behaviour irrespective of age, gender towards Maggi

Q1) Following data indicate Gender of the respondents.

Gender

45% Male
55%

Interpretation: To conclude that majority of respondent are the males when compared to
female who like Maggi.

Q2) Following data indicate age of the respondents

Age group

5%

20% 18-25 Year

47% 26-30 Year
31-40 Year
41-50 Year

28%

Interpretation: To conclude that majority of the respondents are in the age group of 18-25 year
i.e. 47%

26
Q3) which category respondent belongs to?

Category

Student
30%
47% Parent

Working

23%

Interpretation: To conclude the majority of the respondents are the students i.e. 47% as
compared to parents and working.

Q4) Do you buy Maggi Noodles?

Buyer

20%
Yes No

80%

Interpretation:To conclude that the majority of the respondent i.e. 80%buys the Maggi as
compared to respondent who don’t’ buy.

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Q5) what comes first in your mind when you hear the word Maggi?

Words

9%
Noodles
34%
Fast Food
29%
Snacks
None of these
28%

Interpretation:To conclude the majority of the respondents consider Maggi as Noodles i.e.
34% as compared to fast food or snacks.

Q6) how often did you consume the product before the ban?

Consumption before ban

5%
Everydat

21% Twice a week

32% Thrice a week

Once a week
30%
12% Once a month

Interpretation:It is observed that maximum respondent preferred to consume 2 times a week

which shows that frequency of consumption is higher.

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Q7) Do you believe Maggi contained unhealthy levels of lead & MSG up until 2015?

Contants of Maggi

23%
28% Yes

No

Maybe

49%

Interpretation: It is observed that majority of respondents were not aware about the presence of unhealthy
lead i.e. 49%.

Q8) Are you consuming Maggi after its relaunch?

Relaunch of Maggi

30% Yes

No

70%

Interpretation: It has been observed that majority of population i.e. 70% still buy Maggi.

29
Q9) Which instant noodle product were you consuming during the ban of Maggi?

Other instant product

5%

30% Sunfeast

36% Patanjali
Yuppie
Others
29%

Interpretation:We can conclude that when Maggi was banned most of the people used to buy
Yuppie Noodles as compared to others.

Q10) Do you still prefer that product over Maggi?

Alternative product

21%
29% Yes

No

Sometimes
50%

Interpretation:We can conclude that Maggi is still Choice of the customers as maximum
customers consumed Maggi after it is back.

30
Q11) were you aware of the news of ban on Maggi?

Awareness about ban

Yes No

20%

80%

Interpretation:Majority of population was aware about the ban on Maggi.

Q12) What was the mode of communication?

Mode of communication

TV
38% 38%
Newspaper

Internet
24%

Interpretation:We can conclude that majority of population awareness mode was either the
television or the internet.

31
Q13) Do you think after this negative news Maggi will be able to achieve the same position in
the market?

Regain Position

21%
Yes
No
Maybe
54%
25%

Interpretation:Yes, According to the respondents Maggi can and will be able to achieve the
position in the market.

32
 ARTICLE ON ECONOMICS TIMES OF MAGGI

INDIANS EAT MOST MAGGI NOODLES IN THE WORLD

"India has emerged as the largest consumer of Maggi noodles across all Nestle operations in the world,"
Donati told ET.
It was Donati who brought the instant noodle brand to the country during his short stint in the early 1980s.
Maggi went on to create a whole new product category and caught the fancy of kids across the country in no
time.

Today, while India tops in world-wide Maggi sales, the latter has grown to an estimated Rs 160-170 crore
brand contributing as much as 8-9% to Nestle India's top line. Maggi noodles sell in most Asian countries,
Australia and Africa.
However, FMCG analysts are not impressed. They say Maggi has done little to expand the noodles category
per se. "Nestlé’s investment on Maggi has been squarely disproportionate to the growth of the brand,"
Mumbai-based equity research firm ASK Raymond James senior vice-president (research) Nikhil Vora
said.
Today, after 20 years of flogging the Maggi brand, the size of instant noodles market is a small Rs 200
crore. Yet, most analysts agree that Nestle India has done well to leverage the brand to enter a large number
of culinary products.
Just for the record, "In 10 years, I want to sell two and a half times of what I am selling today," said Donati.
So, the learning curve is shrinking.

Launched in early 1980s, Maggi was positioned on the convenience plank which yielded good results.
Looking at the success of noodles, Nestle India decided to extend the brand to a number of products such as
sauces, soups, pickles and macaroni in mid-1990s. Maggi macaroni bombed and pickles didn't do well
either. Maggi soups and sauces chugged along and today have a decent presence in the market.
Maggi noodles' acceptance among Indian consumers didn't come easy. Nestle changed its formulation
some time back which was rejected by the consumer. So, the company had to revert to the original make.
Since then, it has been a smooth sailing for the brand.
Interestingly, it is only now, during Donati's second stint, in the country that the brand has stabilized.
"Maggi noodles have seen a robust double-digit growth in sales during the last four years," said Donati. Last
year, Nestle India launched Chinese Noodles as a snack food for the adults.

33
PERCEPTION OF MAGGI PRODUCT
Objectives of the study:

1. To know the perception of consumers towards the maggi noodles after the ban and after the relaunch of Maggi
noodles.
2. To examine the consumer buying behavior and willing- ness to purchase maggi noodles after it’s relaunch.

Research Methodology:

Primary data have been collected from the 93 respondents by convenient sampling method with the help of
structured questionnaire. Necessary data have also been collected from secondary sources like articles, magazines
and internet.

Data Analysis And Interpretations:

Brand Names of instant noodles consumed by the re- spondents recently.

Brand Names No. of Respondents Percentage

Maggi 35 38
Yippee 44 47
Sunfeast 7 8
Knorr 3 3
Wai wai Express 2 2
Others 2 2
Total 93 100

As per the above table, majority of the respondents (47 per- cent) consumed Yippee noodles and 38 percent
of the re- spondents consumed Maggi noodles, while 8 percent of the respondents consumed Sun feast
noodles , 3 percent of the respondents consumed Knorr noodles , 2 percent of the re- spondents consumed Wai
Wai express noodles and remaining 2 percent of the respondents consumed other brand of noodles.

34
Opinion of the respondents regarding the taste of maggi noodles.

Alternatives No. of Respondents Percentage

Excellent 19 20
Good 49 53
Average 21 23
Bad 1 1
Very Bad 1 1
No response 2 2
Total 93 100

It is clear from above that, majority of the respondents (53%) opined that the taste of Maggi instant noodles
which was consumed before ban was good, where as 23 percent of the respondents feels that the taste was
average, 20 percent of the respondents opine that the taste was excellent. 1 per- cent of respondent perceive
taste as bad and very bad and 2 percent of the respondents have not responded at all.

Health perception of respondents regarding maggi in- stant noodles.

Alternatives No. of Respondents Percentage

Good for
21 23
health
Not good for
69 74
health
Don’t know 3 3
Total 93 100

According to this, now, after the ban, majority of the respondents (74%) feel that Maggi instant noodles which
was consumed before ban was not good for health, 23 percent of the respondents opine that Maggi was good for
health be- fore its ban and 3 percent of the respondents opine that they don’t know about it.

Opinion of the respondents regarding the attribute “safe for consumption”.

Safe for consumption No. of Respondents Percentage

Yes 24 26
No 66 71
Don’t know 3 3
Total 93 100

Above tables showes that, majority of the respondents (71 per- cent) feel that Maggi noodles which was
consumed before ban was not safe for consumption, whereas 26 percent of the respondents feel that Maggi
noodles which was consumed before ban was safe for consumption and 3 percent of the re- spondents opine that
they don’t know.

35
Consumption of Maggi noodles after its relaunch.

Opinion No. of Respondents Percentage

Yes 23 25
No 70 75
Total 93 100

This indicates that, majority of the respondents (70%) have not consumed Maggi noodles after its relaunch and 25
per- cent of the respondents have consumed Maggi noodles after its relaunch.
Opinion of the respondents regarding the attribute “safe to consume Maggi noodles after its relaunch”.

Opinion No. of Respondents Percentage

Yes 47 50
No 38 41
Not sure 8 9
Total 93 100

It can be inferred from this table that, 50 percent of the respondents opine that Maggi noodles is safe to
consume after its relaunch and 41 percent of the respondents felt that Maggi noodles is not safe to consume after
its relaunch and 9 percent of the respondents are not sure whether it is safe to consume or not.

Willingness to buy Maggi noodles in future:

Willingness of Willing to
Respondents to buy Maggi Not willing to buy Maggi
buy Maggi noodles in Noodles in future Not decided No response Total
Noodles future
No. of respond- ents
who did not
Consume Maggi 33 31 5 1 70
after its relaunch

Percentage 47 44 7 2 100

No. of respondents
who consumed
maggi after its 3 3 - 17 23
relaunch
Percentage 13 13 - 74 100

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As per the above Table, among 70 respondents who have not consumed Maggi noodles after its relaunch 47
percent of the respondents are willing to buy Maggi noodles in future whereas 44 percent of the respondents
are not willing to buy the same in future. 7 percent of the respondents have not de- cided and 2 percent of the
respondents did not respond as to where they are willing to buy or no.

Among 23 respondents who have consumed Maggi noodles after its relaunch, 13 percent are willing to buy
Maggi noodles in future and 13 percent reported that they are not willing to buy Maggi noodles in future.
Majority of the respondents (74 percent) have not responded as to whether they are willing to buy or no.

Opinion of the respondents regarding other products of Nestle Company.

Opinion No. of Respondents Percentage

Harmful to health 9 10
Not harmful to health 81 87
Don’t know 2 2
May be 1 1
Total 93 100

It is evident from the Table that majority of the respond- ents (87%) have opined that other products of
Nestle com- pany are not harmful to health, whereas 10 percent of the respondents opinioned that other
products of Nestle company are harmful to health. 2 percent of the respondents told that they don’t know and
1 percent of the respondents opinioned that other products of Nestle Company may be harmful.

Opinion of the respondents regarding willingness to buy other products of Nestle

Company.

Opinion No. of Respondents Percentage

Yes 82 88
No 11 12
Total 93 100

The Table indicates that majority of the respondents (88%) are willingness to buy other products of Nestle
company and 12 percent of the respondents are not willing to buy other products of Nestle Company.

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Opinion of the respondents regarding relaunch of Mag- gi instant noodles in the market.

Opinion No. of Respondents Percentage

Yes 61 66

No 28 30

No Response 4 4
Total 93 100

It is evident from the Table-13 that, majority of the respond- ents (66%) want Maggi to be available in the
market , where as 30 percent of the respondents do not want Maggi instant noodles in the market and 4 percent
of the respondents did not respond.

Opinion of the respondents regarding other branded products available in the market.

Opinion on Safe
for consumption No. of Respondents Percentage

Yes 13 14

No 78 84

Don’t know 2 2

Total 93 100
It is clear from the Table-14 that, majority of the respondents (84%) feel that other branded products available
in the mar- ket are not safe to consume, whereas 14 percent of the re- spondents feel that other branded
products available in the market are safe to consume and 2 percent of the respondents opined that they don’t
know and they are not able to give opinion.

Conclusion:

The study shows that consumers want maggi to be in the market and they are willing to buy the same in the
future only if they include ingredients which are good for health of the consumers. Maggi instant will be able
to win the customers back and will be able regain its position in the market only and only if they prove that
ingredients does not harm the health of the consumers.

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 HYPOTHESIS DONE FOR MAGGI NOODLES

Quick food styles are catching up fast because of more number of working couples, domestic fuel
crisis, non availability of reliable domestic servants and breaking up of joint family system. Neither
time nor patience to prepare the ingredients and wholesome food in the house itself, the high price of
ingredients and ready mix are also a significant factor responsible for the spectacular increase in the
demand for maggi noodles products.

HYPOTHESIS

1. There is no significant relationship between the impact of media and purchasedecision.

2.There is no significant relationship between influencers and purchase decision.

3.There is no significant relationship between preference for more new varieties and Purchase
decision.

4.There is no significant relationship between quality of noodles and purchasedecision.

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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 nestle
Maggi 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.

5. Television advertisements are a major factor in purchase decision compared toother Medias.

6. The foremost influencer in purchase decision of the respondents is children.

7. 60 percent of the respondents were expecting new varieties of maggi noodles from Nestle.
38 percent of the respondents wanted a change in the quantity of present brands.The respondents
want small quantity packets.

8. 50 percent of the respondents feel that the advertisements are good.

9. 44 percent of the respondents feel that prices are cheap.

10. 49 percent of the respondents are moderately satisfied with the quality of nestleMaggi noodles.

11. Majority (68 percent) of the respondents consider that the packing is attractive.

12. Higher percentage (60) of the respondents is awareness on contents/ ingredients

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 SWOT ANALYSIS OF MAGGI

SWOT analysis of Maggi brand clearly indicates the strengths of Maggi as a Brand in Indian market. The
Brand was found to be a leader in its category of Noodles, with strong customer loyalty. Intensive
distribution of Maggi as a Brand was seen in urban areas of the country. The major threats of the brand as
shown in the figure below indicates that Maggi has made several attempts to revamp itself as a ‘Healthy
Product” but till date its perseverance towards the tag line is low by the consumers. The brand is in the
growth stage of product life cycle with a strong inclination towards the maturity stage.

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 STPD ANALYSIS OF MAGGI BRAND

Segmentation: Market Segmentation divides the heterogeneous market into homogenous groups of
customers who share a similar set of needs/wants and could be satisfied by specific products. Maggi
Brand has segmented the market on the basis of lifestyle and habits of URBAN FAMILIES.

Target: Market Targeting refers to evaluating and deciding from amongst the various alternatives, which
segment can be satisfied best by the company. The Maggi Brand have mainly targeted the Kids, Youth,
Office Goers & Working

Woman which falls into the category of “convenience-savvy time misers” who
would like to get something instant and be over with it quickly.

Positioning: Market Positioning is the act of designing the company’s offerings and image to occupy a
distinctive place in the minds of the target market. The goal of positioning is to locate the brand in the
minds of consumers to maximise the potential benefit to the firm. Maggi has positioned itself in the
SNACKS category and not in the meal category since Indians do not consider noodles as a proper food
item. Therefore Maggi have developed its brand image of instant food products with positioning
statements such as “2 minutes noodles” and “Easy to cook, good to eat”.

Differentiations: Points-of-difference (PODs) are attributes or benefits consumers strongly associate

with a brand, positively evaluate and believe they could not find to the same extent with a competitive
brand. The Maggi Brand has also differentiated its brand image from its competitors in terms of taste,
flavours and packaging. Maggi have launched wide varieties of products in different flavours which can
attract larger set of customers. Maggi products are also available in different sizes catering to different
customer needs.

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 CONCLUSION
The food processing business in India is at a nascent stage. Currently, only about 10% of the output is
processed and consumed in packaged form thus highlighting huge potential for expansion and growth.
Traditionally, Indians believe in consuming fresh stuff rather than packaged or frozen, but the trend is
changingand the new fast food generation is slowly changing.
Riding on the success of noodles, Nestle India, tried to make extensions of the Maggi brand to a number of
products like, sauces, ketchups, pickles, soups, tastemakers and macaroni in the mid-1990s. Unfortunately, the
macaroni and pickles didn’t pick up as expected.
The soups and sauces did somewhat fine, gathering considerable sales volumes and have a satisfactory
presence even today. ‘Maggi Noodles’ itself faced a bit of difficulty with respect to ‘taste’, and nearly lost its
position in the minds of Indian consumers in the late 1990s. When Nestle changed the formulation of its
tastemaker, the ominous packet that came along with Maggi Noodles, a major chunk of consumers were put-
off and sales started dropping.
Also, Maggi’s competitor ‘TopRamen’ took advantage of the situation and started a parallel aggressive
campaign to eat into Maggi’s market share. But the company quickly realised this and went back into making
the original formula coupled with a free sampling campaign. This helped Maggi to win back its lost
consumers and pushed up its sales volumes again!
Maggi Today The year 2008 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 25 years of its launch, the size of the instant noodles market is yet quite small at Rs 300 crore. But
yes, the parent company, Nestle India Limited has certainly encouraged the brand to enter into other culinary
products.

RECOMMENDATION

After the conducted study following recommendations could be sited for MaggiBrand.
- To gain maximum leverage in terms of profit the company should pay emphasis on
segments with age groups 25-35 and above .Advertising is the key to success. Targeting
these segments will not only enhance the company’s profit margins but also it will leverage
the brand image of Maggi.

The company should advertise its products by depicting attributes related to Health like
Nutrition values, % of Vitamins, Proteins etc.This would help in customers perceiving the
product as Healthy.
- Foray into other food products like chips, chocolates etc under its sole brand name would
not only help in Brand extension but will alsoenhance Maggi’s market share.

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 FUTURE PLANS

- Nestlé India’s objective is to manufacture and market the company’s products in such a way
so as to create value that can be sustained over the long term for consumers, shareholders, employees
and business partners.

- Maggi’s aims to create value for consumers that can be sustained over the long term by
offering a wide variety of high quality, safe food products at affordable prices.

- The company continuously focuses its efforts to better understand the changing lifestyles of
modern India and anticipate consumer needs in order to provide convenience, taste, nutrition and
wellness through its product offerings.

LIMITATIONS:
The present study is confined to a minimal sample size and may not reflect theopinion or response of the
entire population in general. The results of our study are entirely confined to the responses of the Delhi
consumers and might deviate in terms of actual population as a whole.Recomendations given after the
study are entirely dependent on the survey and the secondary analysis done in the report.

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 QUESTIONNAIRE

1. Are you a customer of maggi ?

 Yes
 No
Analysis: This survey suggested that out of 20 customers all are consumers of Maggi products.
Maggi is quite famous with the different types of customers in the market. Our survey took sample of
customer in general.

2. what comes first in your mind when you hear the word Maggi?
 Noodles
 Fast food
 Snacks
 None of these

Analysis: The survey suggested that 14 out of 20 consumers associated magi with noodles. 3 for
snacks and masala each. People are familiar with magi as a brand fornoodles in majority .

3. what is the brand that comes to your mind when we say the word noodles?
 Maggi
 Top Ramen
 Surya Noodles
 Anil Noodles

Analysis: The survey suggested that Maggi is the most popular brand with the customers of noodles
. It suggests that 18 out of 20 consumers associates noodleswith magi.

4. Rank the following Maggi products w.r.t. frequency of purchase with 1 being the highest rank
RANK

 Noodles ……………………………
 Ketchup ……………………………
 Soup ……………………………
 Pickles …………………………....
 Cubes …………………………....
Analysis: Most of the consumers have ranked noodles as 1. People purchase Maggi noodles in
majority . The frequency of purchase of magi noodles is very high.

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5. With what products would you associate the brand Maggi?
 Ketchup
 Noodles
 Soup
 Masala

Analysis: The survey suggested that 12 out of 20 people associated the brand magiwith noodles .6
customers associated with masala. 2 consumers associate the brand with soup and 1 with ketchup .

6. On a scale of 1 to 5 rate Maggi on the following parameters

 Taste
 Variety/Flavours
 Hygiene/Purity
 Availability
 Packaging (SKUs)

Analysis: The product of Maggi have been rated well above parameters by most ofthe customers.

7. Rank the categories which Maggi should look in future in order of yourimportance :
 Chocolates
 Salted Potato Chips
 Fruit Juices
 Processed foods(Ready to use pastes, masala)
 Others ( Please mention)

Analysis: According to the survey ,magi should look for salted potato chips infuture as it is highly
demanded by the people in market.

8. how do you rate Maggi brand in terms of following parameters:

 Expertise (Competent, Innovative, Market leader)

 Trustworthiness (Dependable and keep customers interest in mind)
 Liability ( Fun ,interesting)
 None of these

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9. Analysis: According to survey , Maggi brand is using expertise strategy to lookforward in future .

How do you perceive Maggi products?

 Good for health.
 Ready to eat.
 Junk food
 Tasty / Fun eating

Analysis: The survey suggest that most of the consumers perceive magi product as being good for
health .

11 .Which Maggi products in noodles category do you regularly buy?(Repositioning awareness)

 Maggi masala
 Maggi vegetable attar noodles
 Maggi dal Atta noodles
 Maggi rice noodles mania
 Others

Analysis: The survey suggest that most of the consumers regularly buy magi vegetables Atta
noodles while few of them preferred magi masala noodles.

12. Do you perceive Maggi noodles as a healthy product?

 Yes
 No

Analysis: According to survey Maggie is perceived as a healthy product for most ofthe consumers.

If No then your suggestions for improvement as a healthy product?

____________________________________________

_______________________________ ______

Analysis: The survey suggest that 20 out of 20 consumers perceive magi noodlesas a healthy product
and need no improvements as a healthy product.

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 BIBLOGRAPHY
www.google.com
www.wikipedia.com

48
THANK YOU!

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