MARKET SURVEY

REPORT

MAGGI INDIA PVT. LTD.

 CONTEN
TS

Sr. No Particulars Pg. No

1 Introduction to Maggi
2 Brand Story
3 Various products of Maggi
4 Taste and preference of
consumers
5 Demography and
psychograph of
consumers
6 Market Share
7 SWOT analysis of Maggi brand
8 Research methodology
9 Questionnaire
10 Data Collected
11 Analysis of questionnaire
12 Conclusion
 INTRODUCTIO
Maggi is a Nestlé brand ofNinstant soups, stocks, bouillon cubes, 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
improving the nutritional intake of worker families. It was the first to bring
protein-rich legume meal to the market, which was followed by ready-made
soup based on legume meal in 1886. In 1897, Julius Maggi founded the
company Maggi GmbH in the German town of Singen where it is still
established today.

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 pakoras 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 color pencils, sketch pens, fun books, Maggi clubs which
worked wonders for the brand.

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 flavors 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 empty noodles 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 programmed and advertised
heavily on kids programmed 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 touched
15% during its initial years.
 VARIOUS
PRODUCTS
The product mix of Maggi is divided into various categories defined
below. The company has launched various products under each
category as mentioned below.

1. Noodles

a) Maggi 2-Minute Noodle (Masala, Chicken, Curry and

Tomato)
b) Maggi Dal Atta Noodles (Sambhar taste) Vegetable Atta
Maggi Noodles
c) Maggi Rice Noodles (Lemon Masala, Chilly Chow and Shahi
Pulao)
d) Maggi Cuppa mania (Masala yo, Chilli chow yo)

2. Sauces

a) Teekha masala Tomato chatpat Imli khata mitha Tomato ketchup Hot
and sweet Tomato pudina
b) Ginger, Garlic & Coriander
c) Maggi Oriental Chilli Garlic
d) Ginger, Garlic & Coriander

3. Maggi Pichko

4. Soups Healthy

a) Chef Style
i. Cream Mushroom
ii. Sweet Sour Tomato Noodles
iii. Tangy Tomato Vegetables
b) Home Style
i. Creamy Chicken
ii. Mixed Vegetable
iii. Rich Tomato
 c) Chinese Style
i. Chinese Hot Sour Chicken
ii. Chinese Sweet Corn Chicken
iii. Chinese Sweet Corn
Vegetables
iv. Chinese Hot & Sour Vegetables

5. Maggi soup sanjivni

a) Amla
b) Badam
c) Spinach
d) Dal
e) Tomato

6. Maggi bhuna masala

a) Bhuna masala for gravy dishes

b) Bhuna masala for vegetable dal

7. Maggi magic cubes

a) Chicken
b) Vegetarian masala
 TASTE AND PREFERENCES OF
HealthCONSUMERS
is the flavour of the season. Food companies in India are growing
aware of the increasingly changing consumption trends and taste
preferences among the Indian junta. No surprises, but this is the reason
more and more companies are coming up (or are actually re-marketing) with
products that are healthy. Take for example Coke and Pepsi; both have
already started looking into the non-carbonated drinks category section.
Maggi first introduced in the market Maggi Atta Noodles – which it claimed
was a healthy food as it was made of wheat flour followed by soups.

Nestle India, in an effort to carry on with its trend of providing the Indian
consumer’s healthy food recently introduced a range of Healthy Soups. The
entire range consists of the following; maggi tomato, mixed vegetable,
tomato vegetable, mushroom, chicken, sweet corn chicken and hot and
sour vegetable. The product is priced at Rs 25 for 70 grams.

Maggi became successful because it understood consumers. The brand

never wanted to change Indian consumer’s habit. It did not have ambitions
about changing Indian’s breakfast or dinner preferences. What Maggi did
was to slowly attach itself to Indian consumer's need without disruption.

Maggi was also closely watching consumer preferences. When consumers

wanted healthy food, Maggi launched Atta Noodle variants that were
healthy. More importantly this move addressed the concerns of
Homemakers. The brand extended itself to multiple segments but without
diluting the core brand equity.

Maggi over these years have made lot of mistakes. It made mistakes
because the brand was willing to experiment. More importantly the brand
learned from those mistakes and corrected itself. Maggi also invested
heavily in brand building. The campaigns for one of Maggi’s products were
always there in the media which kept the brand fresh in the mind of the
consumers. Maggi personifies the basic principles of understanding c o n s
u m e r s , innovating and investing in the brand.
Maggi is one packaged food brand that has only seen its popularity grow in
the past many years and the secret to the success is that instead of trying to
change the food habits of consumers, it has tried to align itself with local
tastes and preferences with the ‘fast to cook and good to eat’ promise.
To commemorate its successful journey through a quarter of a century in
the world’s largest consumer market, the brand, last year, launched an
innovative campaign inviting its loyalists to share with it their Maggi stories
and promised to broadcast them to the world at large, thereby, making
them the superstars overnight. Along with television commercials, which
aired individual consumer stories of their lasting memories of Maggi, the
brand displayed pictures of these loyal customers on the Maggi packs.
Nestle also introduced a website Meandmerimaggi.in for engaging with
them.
The company also rewarded its consumers by adding to the Maggi portfolio
that hitherto had sauces and soups in various flavours, a range of prepared
dishes and cooking aids such as Maggi Bhuna Masala and Maggi Pasta. So
far focused on urban consumers, the company also made a pitch for rural
consumers by launching Maggi Rasile Chow noodles at an inviting price of
Rs4. Again, local tastes and recipes have been at the core of all these
marketing innovations.

“Creating delight and happiness in everyday meals is not just about providing
tasty food. It is about providing taste and health in a convenient
combination,” says Shivani Hegde, general manager, foods.
 DEMOGRAPHY AND PSYCHOGRAPHY
OF CONSUMERS
Demography:-

1) Age and sex: - Maggi products are consumed by people of different

age groups. They are consumed by children, teenagers, adults as well as
old people. They are consumed by both genders male and female.

2)Income: - Maggi products are available at reasonable prices. So they

are consumed by the lower, middle as well as the higher class.

3)Religion and nationality: - Maggi products are famous and are

consumed by people of all religions and nationality.

Psychograph:-

4)Attitude: - Consumers of maggi have a positive attitude towards the

product which makes it the leader in the market. Maggi dominates the
market.

5)Lifestyle: - Lifestyle determines the way of living of people. It

describes how a consumer leads his life. Maggi products are consumed
by all.
 MARKET
SHARE
Maggi's Market Share in Ketchup
Category

45%
55%

Maggi

Others

Maggi has a market share of 45% which is a high percentage. It dominates

the market in the ketchup segment.
 Maggi's Market Share in Noodles Category

20%
80%

Maggi

Others

Maggi has a market share of as high as 80% in the noodles segment. It

dominates the market. It is the leader in this segment.
 SWOT ANALYSIS OF MAGGI
BRAND
The 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.

SWOT ANALYSIS
STRENGTH: -
Market leader in their segment.
Strong brand loyal consumer base.
Wide range of distribution
channel.
Product according to the need of Indian consumer.
Innovative Product

WEAKNESS:-
Product is dependent on each other
Not so much presence in rural
market

OPPORTUNITY:-
Increasing number of working youth.
Product has been acceptable in youth
category. Shift to rural market.
Changing preference of consumer towards Chinese food and fast
food. Can foray into other food markets with its strong Brand name.

THREAT:-
Price war with competitors.
Strong presence of regional competitors.
Consumers don’t perceive it as a “Healthy
Product”.
 RESEARCH
METHODOLOGY:-
METHOLODOGY
The research will be carried out in the form of a survey. This will include
primary research in addition to secondary research as stated below. The
survey research method will be descriptive research design. Each respondent
will be interviewed through a Questionnaire. The sample will be selected by
a simple random sampling method.

The survey will address the following information area:

Information Areas:

The objective as spelt out can be elaborated into specific information areas to
be studied.

 How do customers perceive Maggi as a stable brand, their perception of

noodles and how do they associate themselves with Maggi?
 Are the consumers aware of Maggi Brand or they associate noodles with
some other brand?
 Which product from the entire basket of Maggi products do the
consumers consider as the best selling product for Maggi and to which the
consumers
frequently buy?
 Are the consumers willing to accept Maggi brand extensions to some other
products like chocolate, juices, chips etc?
 QUESTIONNAIR
E
OBJECTIVES OF QUESTIONNAIRE
 To understand the influence of Maggi as a brand on consumers mind set.
 Sources of Brand equity of Maggi like Brand awareness, Brand image,
Brand association, Brand recall.
 To understand the Brand performance of Maggi products.
 To understand Brand Imagery, Brand Quality perceived by customers,
Brand credibility, consideration, superiority and feelings.
 To know the medium of media through which they became aware of
Maggi.

Q 1) Are you a consumer of Maggi?

o Yes
o No

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

Q 3) what is the brand that comes to your mind when we say the word
noodles?
o Maggi
o Top Ramen
o Surya Noodles
o Anil Noodles
Q 4) Color the ring for the following Maggi products w.r.t. frequency of
purchase with 1 being the highest rank

o Noodles
o Ketchup
o Soup
o Pickles
o Cubes

Q 5) with what products would you associates the brand Maggi?

o Ketchup
o Noodles
o Soup
o Masala

Q 6) on a scale of 1 to 5 Color the ring to rate Maggi on the following

parameters

o Taste
o Variety/Flavours
o Hygiene/Purity

Q 7) the categories which Maggi should look in future in order of your

importance:

o Chocolates
o Salted Potato Chips
o Fruit Juices
o Processed foods (Ready to use pastes, masalas)
o Others (Please mention)

Q 8) how do you perceive Maggi products?

o Good for health.

o Ready to eat.
o Junk food
o Tasty / Fun eating
Q 9) Which Maggi products in noodles category do you regularly buy?
o Maggi masala
o Maggi vegetable atta noodles
o Maggi dal atta noodles
o Maggi rice noodles mania
o Others( Plz Mention)

Q 10) You came to know about Maggi from:

o Newspapers
o Radio
o T.V advertisements
o Word of mouth
o Other source

Q 11) Do you perceive Maggi noodles as a healthy product?

o Yes
o No
Q 12) If No then your suggestions for improvement as a healthy product?
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 DATA
COLLECTED
S. Name Gende Age Occupation Address Monthl Produc Remarks
No r y t Used
Incom of
e Maggi
1. Pappu Sharma M 20 Student Gangtok 1000 Noodles Excellent

2. Krishna Murari M 21 Student Gangtok 2000 Ketchup Good

3. Nabakishor M 23 Lab Deoralli 15000 soup V.Good

e Dutta Assista sanjivn
nt i
4. Himanshu Ranjan M 24 Asst. Rangpo 35000 soup Fair
Professor sanjivn
i
5. Trishna Sinha F 20 Student Ranipool 3400 Noodles Excellent

6. Nishant agarwal M 18 Student Gangtok 900 bhuna Excellent

masal
a
7. Bikash kumar M 19 Student Gangtok 2500 bhuna V.Good

masal
a
8. Trisrota Sarkar F 23 Lab Tadong 5400 Noodles V.Good
Assista
nt
9. Ravi Arora M 19 Student Tadong 1800 soup Good
sanjivn
i
10. Mukesh Ambani M 22 Student Manipal 1900 bhuna V.Good

masal
a
11. Ritika Ranjan F 24 Student Namchi 2400 Noodles Good

12. Anjali Chaurasia F 21 Student Geyzing 5500 bhuna V.Good

masal
a
13. Kriti Srivastava F 25 Student Singtam 7200 Noodles Good
 ANALYSISOFTHE QUESTIONNAIRE
Q 1) Are you a consumer of Maggi?

o Yes
o No

Analysis: The survey suggested that out of 13 consumers all 13 are

consumers of maggi products. Maggi is quite famous with the different types
of consumers in the market. Our survey took the sample of consumers in
general.

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

Analysis: The survey suggested that 7 out of 13 consumers associated maggi

with noodles. 3 for snacks and masala each. People are familiar with maggi
as a brand for noodles in majority.

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

Analysis: The survey suggested that Maggi is the most popular brand with
consumers of noodles. It suggests that 12 out of 13 consumers associate
noodles with maggi.
Q 4) Color the ring for the following Maggi products w.r.t. frequency of
purchase with 1 being the highest rank

o Noodles
o Ketchup
o Soup
o Pickles
o Cubes

Analysis: Most of the consumers have given noodles as 5 star. People

purchase maggi noodles in majority. The frequency of the purchase of maggi
noodles is high. Then ketchup as 4 star, etc.

Q 5) With what products would you associate the brand Maggi?

o Ketchup
o Noodles
o Soup
o Masala

Analysis: The survey suggested that 7 out of 13 people associated the brand
maggi with noodles. 3 consumers associated it with masala. 2 consumers
associate the brand with soup and 1 with ketchup.

Q 6) On a scale of 1 to 5 Color the ring to rate Maggi on the following

parameters
o Taste
o Variety/Flavours
o Hygiene/Purity

Analysis: The products of maggi have been rated well above 3 stars in the
above parameters given by most of the consumers.
Q 7) The categories which Maggi should look in future in order of your
importance:

o Chocolates
o Salted Potato Chips
o Fruit Juices
o Processed foods (Ready to use pastes, masalas)
o Others (Please mention)

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

Q 8) How do you perceive Maggi products?

o Good for health.

o Ready to eat.
o Junk food
o Tasty / Fun eating

Analysis: The survey suggests that most of the consumers perceive maggi
products as being good for health.

Q 9) Which Maggi products in noodles category do you regularly buy?

o Maggi masala
o Maggi vegetable atta noodles
o Maggi dal atta noodles
o Maggi rice noodles mania
o Others( Plz Mention)

Analysis: The survey suggested that most of the consumers regularly buy
maggi vegetable atta noodles while a few of them preferred maggi masala
noodles.
Q 10) You came to know about Maggi from:
o Newspapers
o Radio
o T.V advertisements
o Word of mouth
o Other source

Analysis: The survey suggested that a majority of the people came to know
about maggi through television advertisements. Maggi advertisements are
quite famous with the consumers.

Q 11) Do you perceive Maggi noodles as a healthy product?

o Yes
o No

Analysis: The survey suggested that majority of the consumers perceive

maggi noodles as a healthy product. The survey suggests that 20 out of 20
consumers perceive maggi noodles as a healthy product.

Q 12) If No then your suggestions for improvement as a healthy product?

______________________________________
______
______________________________________
______
________________________________________ ___

Analysis: The survey suggests that 13 out of 13 consumers perceive maggi

noodles as a healthy product and need no improvement as a healthy
product.
 CONCLUSI
ON
The survey was a huge success in which we were able to know about the
well established product of maggi in the market.

. Older people are also more expected for a larger choice of products than
younger (goes progressively from 51% to 71% of interest).