PROJECT REPORT

“ANALYSIS OF MARKETING STRATEGIES OF

NESTLE MAGGI”

In the partial fulfillment of Bachelor of Business Administration

(2009-2012)

SUBMITTED TO: SUBMITTED BY:

Dr. NEELAM TANDON AMANDEEP SINGH SEHGAL

Designation: Associated Professor Enrollment No. 04414101709

BBA –VI th Semester

Jagannath International Management School

MOR, Pocket 105, Kalkaji, New Delhi – 110019
Ph: 011-40619200 (100 Lines), 26292074
email: jnims@vsnl.com, Website: www.jagannath.org
 DECLARATION

I,hereby declare that this Project Report titled “ANALYSIS OF MARKETING AND
PROMOTIONAL STRATEGIES OF NESTLE MAGGI” submitted by me to JAGANNATH
INTERNATIONAL MANAGEMENT SCHOOL, New Delhi is a bonafide work undertaken
by me and has not been submitted to any other University or Institution for the award of
any degree diploma / certificate or published any time before.

(Signature of the Student) Date: 26 / 04 / 2012

Name: AMANDEEP SINGH SEHGAL
Enroll. No.: 04414101709
 ACKNOWLEDGEMENT

Survey is an excellent tool for learning and exploration. No classroom routine can
substitute which is possible while working in real situations. Application of theoretical
knowledge to practical situations is the bonanzas of this survey.

Without a proper combination of inspection and perspiration, it’s not easy to achieve
anything. There is always a sense of gratitude, which we express to others for the help
and the needy services they render during the different phases of our lives. I too would
like to do it as I really wish to express my gratitude toward all those who have been helpful
to me directly or indirectly during the development of this project.

I would like to thank my Project Mentor always there to help and guide me when I needed
help. Their perceptive criticism kept me working to make this project more full proof. I am
thankful to them for their encouraging and valuable support. Working under them was an
extremely knowledgeable and enriching experience for me. I am very thankful to her for
all the value addition and enhancement done to me.

No words can adequately express my overriding debt of gratitude to my parents whose

support helps me in all the way. Above all I shall thank my friends who constantly
encouraged and blessed me so as to enable me to do this work successfully.

AMANDEEP SINGH SEHGAL

BBA 6TH Semester
 EXECUTIVE SUMMARY

The project aims at understanding the Marketing strategies of Nestle Maggi. Research
has demonstrated conclusively that it is far more costly to win a new customer than it is
to maintain an existing one. And there is no better way to retain a customer than to exceed
his expectations. For this purpose it is essential to know the level of customer satisfaction.

The focus of my research was the measurement of customer satisfaction provided by

Nestle Maggi. There can be no better opportunity to interact with the external as well as
the internal customers of an organization. Finally the results of the research verify the fact
that keeping the customer satisfied is the best strategy to not only retains the existing
customers but also to expand the business to new horizons.

Fast-moving consumer goods (FMCG) – or consumer packaged goods (CPG) – are

products that are sold quickly and at relatively low cost. Examples include non-durable
goods such as soft drinks, toiletries, and grocery items.Though the absolute profit made
on FMCG products is relatively small, they generally sell in large quantities, so the
cumulative profit on such products can be substantial.

The term FMCG refers to those retail goods that are generally replaced or fully used up
over a short period of days, weeks, or months, and within one year. This contrasts
with durable goods or major appliances such as kitchen appliances, which are generally
replaced over a period of several years.
FMCG have a short shelf life, either as a result of high consumer demand or because
the product deteriorates rapidly. Some FMCGs – such as meat, fruits and vegetables,
dairy products and baked goods – are highly perishable. Other goods such as alcohol,
toiletries, pre-packaged foods, soft drinks and cleaning products have high turnover
rates.
 TABLE OF CONTENTS

1. Introduction
1.1 Introduction to the report
1.2 Company profile
1.3 Review of literature
1.4 Objective & scope of report
1.5 Methodology
1.6 Limitation

2. Analysis & interpretation

2.1 STP Analysis
2.2 SWOT Analysis

3. Conclusion & recommendation

Annexure

 Questionnaire
 Bibliography
 CHAPTER - 1

INTRODUCTION TO THE PROJECT

The Project entitled “ANALYSIS OF MARKETING AND PROMOTIONAL STRATEGIES

OF MAGGI” deals with the study of the Maggi Brand that was launched in India in the
year 1983, by Nestle India Limited, which became synonymous with noodles. Mainly, this
project studies the Marketing and Promotional strategies that are adopted by Nestle India
Limited for Maggi over the years. And also to know about the market position of Maggi as
a Brand, how they survived in the past, what all strategies they adopted to become a well
known and well established brand.

 OBJECTIVES OF THE PROJECT:

 To Understand the Marketing and Promotional Strategies adopted by

Nestle Maggi.
 To understand the brand performance of Maggi product.
 To understand Brand Imagery, Brand Quality perceived by customers,
Brand Credibility, consideration, superiority.
 Brand extension of Maggi in terms of product diversity.
 COMPANY PROFILE

Nestlé S.A. is among the largest consumer packaged goods companies in

the world, founded and headquartered in Vevey, Switzerland. Nestlé originated in a 1905
merger of the Anglo-Swiss Milk Company, which was established in 1866 by brothers
George Page and Charles Page, and the Farine Lactée Henri Nestlé Company, which
was founded in 1866 by Henri Nestlé, whose name meant "Little Nest". The company
grew significantly during the First World War and following the Second World War,
eventually expanding its offerings beyond its early condensed milk and infant formula
products. Today, the company operates in 86 countries around the world and employs
nearly 283,000 people.

 HISTORY OF NESTLE:

The company dates to 1867, when two separate Swiss enterprises were founded that
would later form the core of Nestlé. In the succeeding decades the two competing
enterprises aggressively expanded their businesses throughout Europe and the United
States.

In August of 1867 Charles A. and George Page, two American brothers from Lee County,
IL, established the Anglo-Swiss Condensed Milk Company in Cham. Their first British
operation was opened at Chippenham, Wiltshire in 1873.

In September 1867, in Vevey, Henri Nestlé developed a milk-based baby food and soon
began marketing it. Henri Nestlé retired in 1875, but the company, under new ownership,
retained his name as Farine Lactée Henri Nestlé.

Henri Nestlé.

In 1877 Anglo-Swiss added milk-based baby foods to its products, and in the following
year the Nestlé company added condensed milk, so that the firms became direct and
fierce rivals.

In 1905 the companies merged to become the Nestlé and Anglo-Swiss Condensed Milk
Company, retaining that name until 1947, when the name Nestlé Alimentana SA was
taken as a result of the acquisition of Fabrique de Produits Maggi SA (founded 1884) and
its holding company, Alimentana SA of Kempttal, Switzerland. Maggi was a major
manufacturer of soup mixes and related foodstuffs. The company’s current name was
adopted in 1977. By the early 1900s, the company was operating factories in the United
States, United Kingdom, Germany and Spain. World War I created new demand for dairy
products in the form of government contracts; by the end of the war, Nestlé's production
had more than doubled.

After the war, government contracts dried up and consumers switched back to fresh milk.
However, Nestlé's management responded quickly, streamlining operations and reducing
debt. The 1920s saw Nestlé's first expansion into new products, with chocolate the
company's second most important activity.

Nestlé's logo used until 1970s.

Nestlé felt the effects of World War II immediately. Profits dropped from US$20 million in
1938 to US$6 million in 1939. Factories were established in developing countries,
particularly Latin America. Ironically, the war helped with the introduction of the company's
newest product, Nescafé, which was a staple drink of the US military. Nestlé's production
and sales rose in the wartime economy.

The end of World War II was the beginning of a dynamic phase for Nestlé. Growth
accelerated and companies were acquired. In 1947 came the merger with Maggi
seasonings and soups. Crosse & Blackwell followed in 1950, as did Findus (1963), Libby's
(1971) and Stouffer's (1973). Diversification came with a shareholding in L'Oréal in 1974.
In 1977, Nestlé made its second venture outside the food industry by acquiring Alcon
Laboratories Inc.

In 1984, Nestlé's improved bottom line allowed the company to launch a new round of
acquisitions, notably American food giant Carnation and the British confectionery
company Rowntree Mackintosh in 1988, which brought the Willy Wonka Brand to Nestlé.

The first half of the 1990s proved to be favorable for Nestlé: trade barriers crumbled and
world markets developed into more or less integrated trading areas. Since 1996 there
have been acquisitions including San Pellegrino (1997), Spillers Petfoods (1998), and
Ralston Purina (2002). There were two major acquisitions in North America, both in 2002:
in June, Nestlé merged its U.S. ice cream business into Dreyer's, and in August a US$2.6
billion acquisition was announced of Chef America, the creator of Hot Pockets. In the
same time frame, Nestlé came close to purchasing the iconic American company
Hershey's, though the deal fell through. Another recent purchase includes the Jenny Craig
weight loss program for US $ 600 million.

In December 2005 Nestlé bought the Greek company Delta Ice Cream for €240 million.
In January 2006 it took full ownership of Dreyer's, thus becoming the world's biggest ice
cream maker with a 17.5% market share.

In November 2006, Nestlé purchased the Medical Nutrition division of Novartis

Pharmaceutical for $2.5B, also acquiring in 2007 the milk flavoring product known as
Ovaltine. In April 2007 Nestlé bought baby food manufacturer Gerber for $5.5 billion.

In December 2007 Nestlé entered in a strategic partnership with a Belgian chocolate

maker Pierre Marcolini. Nestlé agreed to sell its controlling stake in Alcon to Novartis on
4 January 2010. The sale forms part of a broader US $39.3 billion offer by Novartis to
fully acquire the world’s largest eye-care company.

 PRODUCTS OF NESTLE:

Nestlé has 6,000 brands, with a wide range of products across a number of markets
including coffee (Nescafé), bottled water, other beverages (including Aero (chocolate) &
Skinny Cow), chocolate, ice cream, infant foods, performance and healthcare nutrition,
seasonings, frozen and refrigerated foods, confectionery and pet food.

 EARNINGS OF NESTLE:

In 2009, consolidated sales were CHF 107.6 billion and net profit was CHF 10.43 billion.
Research and development investment was CHF 2.02 billion.

 Sales by activity breakdown: 27% from drinks, 26% from dairy and food
products, 18% from ready-prepared dishes and ready-cooked dishes, 12% from
chocolate, 11% from pet products, 6% from pharmaceutical products and 2% from
baby milks.
 Sales by geographic area breakdown: 32% from Europe, 31% from Americas
(26% from US), 16% from Asia, 21% from rest of the world.

 JOINT VENTURES:
Nestlé holds 26.4% of the shares of L’Oreal, the world's largest company in cosmetics
and beauty. The Laboratories Inneov is a joint venture in nutritional cosmetics between
Nestlé and L’Oreal, and Galderma a joint venture in dermatology with L’Oreal. Others
include Cereal Partners Worldwide with General Mills, Beverage Partners Worldwide with
Coca-Cola, and Dairy Partners Americas with Fonterra.
 INDUSTRY PROFILE

Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer
packaged goods. Items in this category include all consumables (other than
groceries/pulses) people buy at regular intervals. The most common in the list are toilet
soaps, detergents, shampoos, toothpaste, shaving products, shoe polish, packaged
foodstuff, and household accessories and extends to certain electronic goods. These
items are meant for daily of frequent consumption and have a high return.

The Indian FMCG sector with a market size of US$14.8 billion is the fourth largest
sector in the economy. The FMCG market is set to double from USD 14.7 billion in
2008-09 to USD 30 billion in 2012. FMCG sector will witness more than 60 per cent
growth in rural and semi-urban India by 2010. Indian consumer goods market is
expected to reach $400 billion by 2010.Hair care, household care, male grooming,
female hygiene, and the chocolates and confectionery categories are estimated to be
the fastest growing segments. At present, urban India accounts for 66% of total FMCG
consumption, with rural India accounting for the remaining 34%. However, rural India
accounts for more than 40% consumption in major FMCG categories such as personal
care, fabric care, and hot beverages. In urban areas, home and personal care category,
including skin care, household care and feminine hygiene, will keep growing at relatively
attractive rates. Within the foods segment, it is estimated that processed foods, bakery,
and dairy are long-term growth categories in both rural and urban areas.The growing
incline of rural and semi-urban folks for FMCG products will be mainly responsible for
the growth in this sector, as manufacturers will have to deepen their concentration for
higher sales volumes.

Major Players in this sector include Hindustan Unilever Ltd., ITC (Indian Tobacco
Company), Nestlé India, GCMMF (AMUL), Dabur India, Asian Paints (India), Cadbury
India, Britannia Industries, Procter & Gamble Hygiene and Health Care, Marico
Industries, Nirma,Coca-Cola, Pepsi and others.As per the analysis by ASSOCHAM,
Companies Hindustan Unilever Ltd , Dabur India originates half of their sales from rural
India. While Colgate Palmolive India and Marico constitutes nearly 37% respectively,
however Nestle India Ltd and GSK Consumer drive 25 per cent of sales from rural India.

A rapid urbanization, increase in demands, presence of large number of young

population, a large number of opportunities is available in the FMCG sector. The
Finance Minister has proposed to introduce an integrated Goods and Service Tax by
April 2010.This is an exceptionally good move because the growth of consumption,
production, and employment is directly proportionate to reduction in indirect taxes which
constitute no less than 35% of the total cost of consumer products - the highest in Asia..
The bottom line is that Indian market is changing rapidly and is showing unprecedented
consumer business opportunity.

MAJOR COMPETITORS OF NESTLE MAGGI

Maggi instant noodles, foods major Nestle's flagship brand that has dominated the
Indian instant noodles market for nearly three decades, is losing market share on a
monthly basis to newer entrants such as GlaxoSmithKline's (GSK) Horlicks Foodles,
Hindustan Unilever's (HUL) Knorr Soupy noodles, Big Bazaar's Tasty Treat, Top Ramen
and several other smaller players, according to data by market research firm Nielsen.

The data shows that Maggi's share of instant noodles, on an all-India basis, across
urban markets, has slipped consistently between December '09 to July '10. While Maggi
instant noodles (minus vermicelli) had a 90.7% share in December '09, the share
dropped to 86.5% in July '10 on an all-India basis.

A regional split of the data shows that Maggi's instant noodles' value market share has
fallen across the east, south, north and west zones for the same period.
Analysts say with new competition, Maggi's market share is certain to get impacted , but
add that Nestle has the potential to expand the Rs 1,300-crore instant noodles category
– which itself is growing at a rapid 15% annually. A detailed email sent to Nestle on
Thursday elicited no response.

Apart from HUL and GSK which have positioned their noodles as 'healthy' snacking
options targeting kids and mothers, others like Indo-Nissin's Top Ramen, Capital Foods'
Ching's Secret and CG Foods's Wai-Wai , though around for long, are stepping up
marketing efforts to take advantage of category growth. Besides, private brands like Big
Bazaar's Tasty Treat and Aditya Birla Retail's Feasters are notching up share.

Manoj Menon, FMCG analyst at brokerage firm Kotak Securities, wrote in a report
earlier this month: "Maggi faces product substitution risk and brands like Knorr and
Foodles could potentially impact its incremental growth. Nestle faces a challenging
competitive environment in culinary."

GSK, which entered the category in December last year, has taken away share from
Maggi mainly in the South and East riding on the equity of Horlicks and its well-
entrenched distribution in the regions.

GSK's executive VP, marketing, Shubhajit Sen, said: "Consumers were looking for a
choice in instant noodles; combined with that, the equity of Horlicks is leading to a lot of
trails. The initial response to Foodles is much higher than our expectations."

On the other hand, HUL, which rolled out Knorr Soupy noodles in the South this
February, had to postpone the brand's national launch due to capacity constraints
because of heavy consumer offtake. An HUL spokesman said: "We are very pleased
with the performance of Knorr Soupy noodles."
Private brands are whetting appetites of consumers too. According to Devendra
Chawla, business head, private brands, Future group: "The category boundary is set to
be re-drawn. From a snack food targeted at children, instant noodles category has
evolved as a mainstay meal even for grown ups."

Mr Chawla said Tasty Treat was the second biggest instant noodles brand in its Big
Bazaar stores after Maggi. The brand packaging was revamped last year and Future
plans to roll out additional variants in a month's time taking the number of variants to
nine from the existing three.
 INTRODUCTION

HISTORY OF MAGGI – INDIA:

Nestlé India Ltd. (NIL), the Indian subsidiary of the global FMCG major, Nestlé SA,
introduced the Maggi brand in India in 1982, with its launch of Maggi 2 Minute Noodles,
an instant noodles product.

With the launch of Maggi noodles, NIL created an entirely new food category - instant
noodles - in the Indian packaged food market. Because of its first-mover advantage, NIL
successfully managed to retain its leadership in the instant noodles category even until
the early 2000s.

NIL offered a variety of culinary products such as instant noodles, soups, sauces and
ketchups, cooking aids (seasonings), etc., under the Maggi brand (Refer to Exhibit II for
Maggi's product portfolio as of mid-2006). Of these, instant noodles had been NIL's main
product category in the culinary segment since the launch of Maggi 2 Minute Noodles
(Maggi noodles) in 1982. Over the years, Maggi noodles became a popular snack food
product in India.
During the 1990s, the sales of Maggi noodles declined, and this was attributed partly to
the growing popularity of Top Ramen , another instant noodles product. In order to
improve sales and attract more consumers, NIL changed the formulation of Maggi
noodles in 1997. However, this proved to be a mistake, as consumers did not like the
taste of the new noodles. In March 1999, NIL reintroduced the old formulation of the
noodles, after which the sales revived. Over the years, NIL also introduced several other
products like soups and cooking aids under the Maggi brand.

However, these products were not as successful as the instant noodles.In the early
2000s, Maggi was the leader in the branded instant noodles segment, and the company
faced little serious competition in this segment. In the early 2000s, NIL started introducing
new 'healthy' products in accordance with the Nestlé Group's global strategy to transform
itself into a health and wellness company. In March 1999, NIL reintroduced the old
formulation of the noodles, after which the sales revived.

Over the years, NIL also introduced several other products like soups and cooking aids
under the Maggi brand. However, these products were not as successful as the instant
noodles. In the early 2000s, Maggi was the leader in the branded instant noodles
segment, and the company faced little serious competition in this segment.

In July 2001, Maggi replaced Nescafé (NIL's coffee products brand) as the company's
core brand. Nescafé had been NIL's core brand since 1998.

Commenting on the shift, Carlo Donati (Donati), chairman and managing director, NIL,
said, "The focused approach on Nescafé, which was the company's flagship brand over
the last few years, has yielded rich dividends and we plan to replicate the same in case
of Maggi as well."
In the early 2000s, the Nestlé Group had been taking measures to transform itself into a
'health and wellness' company. The company had also set up new research and
development facilities with a view to improving the attributes of the existing Nestlé
products to make them healthier, and to develop new health and wellness products. Since
the early 2000s, the Nestlé Group had been introducing 'health and wellness products all
over the world. In India, NIL introduced new 'healthier' weaning and milk products in 2004.

In March 2005, the Maggi brand too took to the health route with the launch of Vegetable
Atta Noodles. NIL made use of the group's extensive research and development facilities
in developing this new 'healthy' product.

MAGGI – INDIA:

Nestle India Limited is the market leader in Indian Noodle Market with it’s Maggi Brand of
Noodles which was pioneer brand launched in 1983 in the packaged food market of India.
It took the challenge and established Maggi in Indian market considered to be
conservative and typical about food consumption. It appropriate realization of target
segment, effective positioning and effective promotion and sales made Maggi to Noodles
in India as Xerox it to photocopier. NIL had introduced sauces, ketchups and soups under
Maggi brand to reap benefit of brand popularity and image and contribute to financial
gains by 1990.Maggi also became successful in sauces, ketchups and soups Market in
India. Though NIL tried to extend to other ready to eat products like pickles, cooking aids
and paste, It was unsuccessful so dumped those products. Maggi Brand of products
sustained recession in 2000 and 2001 in India by introducing economy packets.
To fulfill novelty needs of customers and revitalize Maggi Noodles Brand NIL made
different attempts by introducing new formulation to new taste but customers resisted
change and Maggi had to reintroduce Maggi Noodles in same taste. Maggi Noodle had
till 2005 five product line on noodles with four variant in Maggi 2 Minutes Noodle. In 2006
in compliance with NIL target to be “health and Wellness Company” Maggi repositioned
it as health and taste food products. NIL has also introduced with taste and product line
in Sauces and Soup Market under Maggi to catch new segment, revitalize brand, compete
with other producers and fulfill expectation of customers.

In 2005 Maggi brand worth was 3.7 billion from 1.7 billion market worth in 1.7 billion in
2003. Maggi Noodle is Market leader with around 80% market share in Noodles/Pasta
and Maggi Sauce is market leader with almost 37% of market share in 2005 in 1.8 billion
market of India. Knorr has taken over Maggi in Soup market recently.
In 2005 Maggi was the highest spender in the Promotion and Sales in the Indian Market
in the Noodles Category.

Maggi is competing with Heinz Sauces and Ketchup, Knoor Soups, Kissin Sauces and
Ketchup, Top Ramen, Sunfeast Pasta Wai Wai and 2 PM in corresponding categories of
products and variants

MAGGI TODAY:

The year 2003 saw India leading in worldwide Maggi sales. The brand has grown to an
estimated value of Rs 160-170 crore and contributes at least 8 – 9% to Nestle India’s top
line. All the same, some FMCG analysts feel that the brand has not done much to expand
the noodles category. Even after 20 years of its launch, the size of the instant noodles
market is yet quite small at Rs 200 crore. But yes, the parent company, Nestle India
Limited has certainly encouraged the brand to enter into other culinary products. Carlo
Donati told a leading newspaper that he wants to sell two and a half times of what he is
selling today, in the next 10 years.

Of course, being a first-mover - or even a market dominator - counts for nothing if

marketers let their guard down. Maggi noodles, which built itself on the taste-and-
convenience platform through the 80s and early 90s, started facing the heat from Indo
Nissin’s Top Ramen brand around 1995. The latter began pushing forward aggressively
on a combination of taste variants, smart audience segmentation and Shahrukh Khan’s
brand endorsement.
Nestle promptly re-jigged its offering with a new taste - which didn’t go down well with the
consumer. In 1999, Maggi was relaunched with its original taste, and sustained efforts
saw the brand reclaiming lost ground. Since then, the brand has been innovating
constantly to keep share. “Maggi adapted to local tastes and withstood competition over
the years and has continuously sensitised itself to the evolving Indian consumer,” says
Martial Rolland, chairman and managing director, Nestle India.

MARKETING MIX
PRODUCTS OF MAGGI:

 NOODLES:

 MAGGI 2 – MINUTE NOODLES:

MAGGI 2-Minute Noodles is one of the largest and most loved food brands
that defines Instant Noodles in India.

Continuing to spread joy as it has done for the last 25 years, your favorite
MAGGI Noodles is as tasty as ever and even provides essential nutrients
for all stage of your life. With the goodness of Protein and Calcium, MAGGI
Noodles is available in 4 delectable flavors – Masala, Chicken, Tomato
and Curry.
 MAGGI 2- MINUTE NOODLES

 MAGGI VEGETABLE ATTA NOODLES:

An offering that exemplifies ‘Taste Bhi Health Bhi’, MAGGI Vegetable Atta
Noodles is tasty because it is loaded with everyone’s favourite MAGGI
‘Masala’ and healthy because it now has more real vegetables and is
packed with the power of fiber.

MAGGI VEGETABLE ATTA NOODLES

 MAGGI CUPPA MANIA:

Each offering of MAGGI Noodles has been developed keeping in mind the
Indian palate and what you like. Since in today’s fast-paced busy life,
multitasking is a reality, you need something that fits with your rushed
 lifestyle – a product which is tasty and healthy, is convenient to prepare and
eat and also satiates your hunger .

MAGGI Cuppa Mania is a combination of all the above! In an easy to carry

on-the-go Cup format, MAGGI Cuppa Mania comes in two mouth watering
variants – Masala Yo! And Chilly Chow Yo! Packed with real vegetables and
the goodness of Calcium, just add garam paani* to the Noodles and voila!
A cupful of delicious MAGGI Cuppa Mania is ready for you to carry on
jaani!

MAGGI CUPPA MANIA

 SOUPS:

 MAGGI HEALTHY SOUPS:

MAGGI was the pioneer of Instant Soups in India.
The new MAGGI Healthy Soups have been carefully prepared through the
Research and Development efforts of Nestlé Group and are even more
delicious, quick to prepare, convenient and healthy. Taste Bhi, Health Bhi!.
MAGGI Healthy Soups contain real vegetables, are low fat, low cholesterol
and free from synthetic colours and added MSG.
 These superior healthy soups are now available in an enhanced range of
12 delicious variants:

 Healthy Style
- Rich Tomato
- Mixed Vegetable
- Creamy Chicken
- Masala Noodles

 Chinese Style
- Hot & Sour Vegetable
- Sweet Corn Vegetable
- Sweet Corn Chicken
- Oriental Thai Noodles

 Chef Style
- Cream of Mushroom
- Tangy Tomato Vegetable
- Sweet n Sour Tomato Noodles
- Palak Corn

 SANJEENI MAGGI HEALTHY CUP:

 Traditional recipes for good health, made with ingredients time-tested for
their goodness, like Amla, Spinach, Dal and tomato. Available in an easy to
use cup-just add hot water and treat yourself to a cup foll of good life.

MAGGI SOUPS

 SAUCES:

 MAGGI SAUCES:
MAGGI Sauces have been an integral part of the Indian consumers'
household for decades now. To cater to the diverse Indian palate, MAGGI
has a host of variants like:

- The quintessential Rich Tomato Ketchup and Rich Tomato Sauce.

- The unique Hot & Sweet Tomato Chilli Sauce and Oriental Chilli
Garlic sauce.
- The Indian style Tomato Chatpat Sauce

Lipsmacking tastes and vibrant packaging make MAGGI Sauces true to its
slogan - It's different!

MAGGI SAUCES
  MAGGI PICHKOO:

Pichkoo is a small doy pack which makes MAGGI Tomato ketchup

affordable to a host of new consumers. And now, MAGGI makes the delight
"Bigger' by introducing a Bada Pichkoo. A large Tomato Ketchup doy pack
which ensures that the fun goes on and on.
It's endearing name, packaging and great taste evoke a resounding
reaction.

"New MAGGI Pichkoo - It's different!"

MAGGI PICHKOO

 PASTA:

 MAGGI PAZZTA:
 To further delight the consumer, MAGGI now launches another range of
products for tasty and healthy eating – NUTRI-LICIOUS PAZZTA. This
quick cooking pasta can be conveniently prepared in just 5 minutes, at

any time of the day that you want a tasty and healthy light meal. MAGGI
NUTRI-LICIOUS PAZZTA is made from 100% Suji, and is a source of
Protein and Fibre. It has being launched in two delicious flavours ‘Masala
Penne’ and ‘Cheese Macaroni’.

MAGGI PAZZTA

 COOKING AIDS:

 MAGGI MAGIC CUBES:

 MAGGI Magic Cubes enhance the taste of your everyday dish, making it a
special for the entire family. Available in two variants – Vegetarian Masala
& Chicken – MAGGI Magic Cubes are an ideal seasoning for a variety of
dishes such as Veg Biryani, Chicken Biryani, Chicken Curry etc. And it’s
so easy to use!

 MAGGI BHUNA MASALA:

MAGGI is revolutionizing the Indian kitchen with its latest offering – MAGGI
Bhuna Masala. It is any mother’s ally for conveniently cooking great tasting,
wholesome food for the family everyday. Based on intensive research and
in-depth understanding of Indian food habits and cooking practices, MAGGI
Bhuna Masala allows the housewife to prepare a large variety of tasty
dishes without the hassle of chopping and frying. The dishes retain that
‘special touch’ of the housewife as she adds her own spices….. Standing
strong on its promise of “Taste Bhi, Health Bhi”, MAGGI Bhuna Masala
comes with "no added preservatives", "contains only 1 tbsp* of oil" and
"tastes just like homemade." Gives you a perfect dish in three simple
steps:

 Open the pack & pour contents in the pan

 Add vegetables/paneer/chicken/rajma etc.
  Add spices and cook

MAGGI Kitchen Secrets Bhuna Masala comes in two variants:-

Bhuna Masala for Gravy Dishes- a ready- mix of Onion, Tomato, Ginger
and Garlic fried in refined oil. (Use it to make tasty dishes like Zaikedaar
Chicken, Rajma, Kolhapuri Mutton, Aloo Potol etc.)

Bhuna Masala for Vegetables and Dal- a ready- mix of Onion and
Tomato, fried in refined oil. (Use it to make tasty dishes like Palak corn, Dal
Tadka, Bhindi Masala, Urlai Roast etc.)

 MAGGI COCONUT MILK PRODUCT:

With MAGGI Coconut Milk Powder you can make rich coconut milk quickly
and conveniently by simply adding warm water. It is manufactured from the
best Sri Lankan coconuts. Easy to use and ideal for curries, rice
preparations, cakes, cookies and blender drinks. MAGGI Coconut Milk
Powder gives you the taste of real coconuts and has no added
preservatives.

 MAGGI PIZZA MAZZA:

 Now you do not need to order pizzas from outside and wait for 30 minutes.
With MAGGI Pizza Mazza you can prepare delicious pizzas within minutes.
You can also have the mazza of the pizza on other items like naans,
footlongs and of course the most easily available of them all – bread slices.
Available in a 300 gm jar, each bottle is good for 5 pizza bases.

 MAGGI MASALA – AE – MAGGI:

The first ever fortified taste enhancer that can be used across different
cuisines in India. It is not a simple masala, but is unique in that it efficiently
enhances the taste inherent in the food ingredients already present.
It is specifically fortified with Iron, Vitamin A & Iodine that are known to be
widespread deficiencies in India.
Everyday food now becomes delicious & healthier in 2 simple steps:

 Cook Dish as you normally do

 Add 1 sachet 2-3 minutes before taking off the flame and stir well.
 COOKING AIDS

PRICE OF MAGGI:

 Considering the price points in the market for Maggi, it should continue to
position itself in the “snack” category itself, since few would be willing to
accept it as a meal.

 The company is taking no chances and is extending its distribution reach to

smaller towns and cities. Maggi happens to be Nestlé’s
most widely distributed brand in the country. Through independent channels,
it reaches those villages where the company has no presence, according to
Hegde. This is also the time that Maggi’s value-for-money pack priced at Rs
5 is expected to come handy. (The regular pack comes for Rs 10.)

 Affordable by all income groups.

PLACE( DISTRIBUTION);

 The distribution network is well spread.

 Easily available in all retail stores.

 Distribution channel – PRODUCER - DISTRIBUTOR - RETAILER –

CONSUMER
 PROMOTION OF MAGGI:

 They promote their product very effectively through television.

 They have applied the strategy of brand extension.
 They also sponsor various cookery shows to promote alternate usage of products.
 They also use strategy of free product samples to promote it.
 Celebrity endorsements. Eg. Javed Jafferi PROMOTION
 Less promoted as compared to maggi.
 No particular celebrity endorsement.
 The utter confusion regarding the long-term strategy for Kissan brand was visible
through the experiments that were conducted on this brand by Hll.
 But with a brand which had a tremendous equity during the late nineties and early
2000, HUL had weird plans. One of the major casualties of MS Banga's Power
brand strategy was Kissan. During the early 2000, the brand Kissan was rebranded
as Kissan Annapurna. Kissan Annapurna was marketing not jams and squashes
by Atta, salt and other staple foods. Later Annapurna and Kissan was splited into
two separate brands , one concentrating on staple foods and other on processed
foods. This migration strategy proved to be very costly for both Kissan and
Annapurna brand. Kissan was synonymous with Jams and Squashes during its
initial years. Kissan Ketchup was a market leader in ketchup segment but these
experiments and myopic strategies pushed the brand behind the focused and
aggressive Maggi.
 So all through the period 2001-2005, Kissan was in a sticky wicket. But now
according to reports, the brand mandarins of HUL is now clear about Kissan as a
brand for processed food like Jams , ketchups and like, That change is visible in
 the recent campaign of Kissan which takes a unique view of Ketchup. Taking the
tagline " Aao banaye pakode behtar" translated to " Making Pakode taste better".
 In these series of ads, the brand plays a second fiddle to the main snack. The
brand takes the positioning of a "Great Accompaniment "

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 Dal. So a new product with a new
taste that too from a different culture will have difficulty in appealing to Indian market.

Initially Nestle tried to position the Noodles in the platform of convenience targeting the
working women. But it found that the sales are not picking up despite heavy promotion
.Research then showed that Kids were the largest consumers of the brand. Realising this,
Nestle repositioned the brand towards the kids using sales promotions and smart
advertising.Now Indians are the largest eaters of Maggi Noodles in the world. Maggi
Noodles is a marketing success story.

During 1997 Maggi changed its formulation. It was during that time that Indo Nissin - a
Japanese company launched its Noodles brand "Top Ramen" with lot of promotion and
with SRK endorsing the brand. TopRamen gave Maggi a run for its money. The change
in taste of Maggi was a mistake. The consumers rejected the new taste of Maggi. And in
1999 Maggi relaunched Noodles with the original taste. Nestle was ready to accept the
consumers verdict and it paid off handsomely. Top Ramen could not sustain the growth
it had for long.
Maggi's campaigns were revolved around its "convenience to make and good to eat "
qualities. Ready in " 2 minutes " was a proposition that was well received by the market.
In 2005 Nestle made a very smart move. It knew that although kids love noodles, the
parents were bothered about the health aspect of Noodles which was made of Maida.
Hence Maggi launched Maggi Atta Noodles with the baseline " taste bhi health bhi"
.Reports suggest that after 10 months of the launch , the product has been well received
by Indian consumers. Maggi noodles is an example of a brand that knows the customer
and willing to learn from the mistakes.

Maggi also tried to leverage the success of the Noodles to other food products like sauces
, tastemakers , soups etc.

Maggi sauces needs special mention because it is another success story. Maggi have a
market share of 45% in the 180crore ketchup market in India. Maggi leveraged the brand
equity very effectively. The product quality was good and the communication was
excellent. The brand was positioned as a "Different" sauce with the baseline " Its
different".

Customers was intrigued as to what is different about the brand and was curious to try
the sauce ( may be surprised to find nothing different,but that is marketing honey!). The
ads featuring Javed and Pankaj kapoor was superb and funny. It was created by JWT.
The new campaigns are handled by Publicis and the baseline has been changed to "
enjoy the difference".

There was no need to change the baseline,may be ad agencies have an ego problem in
accepting the creativity of another agency. So agencies change the baseline even at the
cost of the brand.In this case even though the new baseline " enjoy the difference" was
not very different from the old one, was it a change for the sake of change ?

I strongly feel that the brand managers should take the ownership of the brand and the
way it is communicated. If it is left to agency alone, every time the agency changes, the
communication changes.

Maggi after its long and tough journey is enjoying its well deserved success.

MAGGI SAUCE AD – JAVED JAFFERY

 PRODUCT LIFE CYCLE OF MAGGI:

 INTRODUCTION:

 The Product launched keeping in mind the working women and childrens.

 It was the pioneer in instant noodle market.

 Distribution Stage PRODUCER – DISTRIBUTORS – RETAILERS –
CONSUMERS.
 PRICING: The initial pricing strategy was low pricing strategy to make
product affordable.
 PROMOTION

- Promoted with tag line “BAS 2 MINUTE.”

- Promotion done by giving gift on empty packs.

- Promotion in school.

 GROWTH:

 Increased No. of sales.

 Accepted as ready to eat food.
 Enjoyed 50% market share valued at 250 crores.
  Profits begin to rise.
 Maggi become the No. 1 brand in Instant noodles market.
 PRICING: Prices were kept normal.
 PRODUCT: No any new changes
 PROMOTION: Promoted with the tag line “Good to eat fast to cook”

 MATURITY:

 Declining sales growth.

 Saturated market.
 Extending product line.
 Large promotional offers.
 Entrance of new players - During the period of 90’s MAGGI faces the tough
competition from TOP RAMEN.
 PRODUCT: MAGGI introduced wide variety of products like Dal atta
noodles, chicken maggi, maggi cuppa mania.
 PRICE: Maggi still comes in very affordable prices starting from Rs. 5,they
reduced the quantity instead of increasing price.
 DISTRIBUTION: Distribution become more intensive. Various intensive
programs for encouraging products over other competitors.
 DECLINE:

 Sales saw a decline in 1990’s – Formulation changed from fried base to air
dried base.
 New product launched but failed- Dal atta noodles sambar flavor
 Tough competition from Top Ramen.
 Failure of other products like Soups, Cooking aids etc.

PRODUCT LIFE CYCLE

 STRATEGIES ADOPTED BY NESTLE:

 Nestle manages to create new product categories under the brand

name of “MAGGI”. They adopted the following strategies:

 Maggi introduced the magi sauce category and pizza variant. It is always
easier to promote a new product under the name of the established
brand as the expenditure and recognition time is less.

 Nestle also used the cultural base marketing in India as knowing the fact
that Indian people like Rice, they introduced Maggi Rice Noodles Mania.

 Nestle was able to successfully use the umbrella branding for Maggi.
They introduced many variant under the brand name of Maggi. By doing
so, They were successful in making the product popular.

 Maggi also successfully able to position its noodles in the minds of the
consumers as the fast food item.

 On the other hand they also introduced some categories which are
having the complete diet in the form of noodles. They said that these
contain some protein and calorie level which is must for the children. By
doing the emotional marketing they were successfully able to promote
these products: MAGGI Vegetable atta noodles, Dal atta noodles, Rice
noodle mania, Healthy soup etc.
 STRATEGIES ADOPTED BY NESTLE MAGGI:

 Strong Customer Relations: The campaign designed by Nestlé for Maggi’s

silver jubilee hopes to work on the brand’s strong consumer connect through
television, the Internet and print. The jingle gets a prominent play in the television
campaign. Nestlé, India’s largest food products company, has decided not to litter
the sky with hoardings on the occasion. Instead, the ads will play on nostalgia.
Consumers who first sampled the brand as kids now run households. The
campaign seeks to strengthen the association.
Thus, customers will be invited to share their “Maggi moments” with the
company. If the company likes the way you prepare Maggi, you could find
your photo on Maggi packs. A new website called www.meandmerimaggi.com is
also in the works.

 Good Packaging and Strong Dealer Vendor Relations: Convenience

was the unique selling proposition of Maggi when it was launched 25 years ago.
For the first time, consumers got something that was hygienically packed and
convenient to prepare. It was also the first fusion experiment on food in India.

 Continuous process innovation: Instant noodles was an entirely new

category in the country, but it was given an Indian twist. Maggi came in four
variants:Masala, chicken, sweet & sour and capsicum. Of these, only two have
 survived — masala and chicken which sells largely in the eastern states.Masala
continues to be the flagship flavour. In the days that followed, it experimented with
more variants, like a garlic- and onion-free one for Gujarat.Some of these still exist,
others were discontinued.

The turning point came in 2005, when Nestlé came out with Maggi atta
(whole-wheat flour) instant noodles. All over the country, atta is considered
healthier than maida or refined flour which the company was using from day one.
This helped the company take the health platform, though Nestlé General Manager
(food business) Shivani Hegde insists that the product never ran the danger of
being classified junk food. It was then that it added the tagline, health bhi, taste bhi
(health as well as taste).

 Repositioning as a healthier snack: “It is no longer an aspirational product

for any socio-economic category of consumers,” says Hegde

That was also the time when Nestlé was repositioning itself worldwide as a health
and wellness company. At the grassroots level, Maggi started
associating with quiz contests and other such events connected to mental and
physical wellbeing.
This positioning gave Nestlé the platform to launch more products under the Maggi
brand. It already had Maggi soups, sauces and coconut milk in the market, but
given the strong equity of the brand, Nestlé could now extend it to newer
categories. Thus, it recently came out with fried masala paste.
In 2008, two brand extensions — Maggi Bhuna Masala and Maggi Cuppa Mania
Instant Noodles .
 Price Incentives: The company is taking no chances and is extending its
distribution reach to smaller towns and cities. Maggi happens to be Nestlé’s most
widely distributed brand in the country. Through independent channels, it reaches
those villages where the company has no presence, according to Hegde. This is
also the time that Maggi’s value-for-money pack priced at Rs 5 is expected to come
handy. (The regular pack comes for Rs 10.)

 Capturing New Customer Base : Maggi realised that one of the reasons
for a low market share in Gujarat was that most of gujaratis do not eat garlic and
Onions so for Gujarat Maggi has come up with a special product which is devoid
of onions and garlic and marketed it as Jain Maggi. This helped them gain a
completely unconquered market of Jain Noodle eaters.

 Maggi turns 25; Nestle comes up with new campaign

Nestle India is out with a new marketing drive to mark the 25th anniversary this
year of its instant Noodles brand, Maggi Called Me & Meri Maggi, the campaign is
celebrating the consumer’s bond with Maggi. The company is doing“360 degree
activation” across television, print and the internet, beside on-ground activities.
Nestle has also launched an interactive website for the
consumers,www.meandmeri.in
The packaging has been tweaked to accommodate the pictures of consumers
whose entries the Company chooses. “If a consumer has a story to tell about Maggi
will put him or her on the Packaging, TV or print,”
 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 the end of the year, Maggi
noodles was generating sales volume of around 5000 tonns 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 cheapeer packaging material, the company also introduced
“money saver multi packes” 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 euphoroia was, however, short lived, as sales stagnated in 1995 at the previous
years level. With soup business being threatned by a new entrant

“Knorr soups” launched in 1995, offering 10 flavors against Maggi’s 4 the company started
rethinking its strategies towards the soup market.
In order to stretch Maggi’s brand to include Indian ethenic foods the company tied up with
a Pune based chordia 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 for ready 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 aunched. 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 Tonite’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 flavors, 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 Maggi Macaroni (packaging and flavor 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.

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 relaunch ‘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 of Kissan 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 relaunch 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 rought 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 relaunch, 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, Nestlé carried out various
promotional activities as well. These included the August 1999 ‘Fun-Dooz’ campaign and
Jungle Jackpot campaigns. 6 As a result of the above initiatives, Nestlé claimed to have
cornered an 81% market share of the 20,000 tonnes noodles market by the end of 1999.
Nestlé sources claimed that Maggi noodles outsold the competition four times over and
that more than four Maggi noodle cakes were consumed every second in the country.

MARKET PENETRATION STRATEGY:

Maggi started with promotional campaigns in the school to see the reaction of
children after eating Maggi.
 Started their advertising straight focusing on kids.
 Introduced new products like atta noodles dal atta noodles cuppa mania.
 Products are made available in different packages like 50,100,200,400
Gms.
 Keep on conducting market research to understand changes in market.

Though Maggi has been successful every time, there were times when it faced
challenges. Some of these are:

 Sales saw decline in 1990: The Company saw a decline in the sales in 1990.
When the company tried to find out what the reason was, they came to know
that there was some thing wrong with the formula that spoiled the taste. So
the formula was changed from fried base to oiled dried base.
 Competition increased in noodle segment: When Maggi was enjoying being
the only noodle offering by any company Top ramen entered the market as
a competition. This was a big challenge for Maggi. Though Top Ramen
couldn’t do well in India.
 New product launched in market but failed- Nestle decided to expand its
offerings by offering Dal atta noodles & Sambhar flavor noodles. But these
products were not welcomed by the people the very special taste of Maggi
was still ruling the consumer.
 Maggi launched some new products: Ketchups, Soups, Taste makers etc.
but they were not successful.
 OBJECTIVES & RESEARCH METHODOLOGY

Qualitative method will be used in the study. Qualitative method strives on

understanding data through giving emphasis on determining people words
and actions.

This project titled as mentioned involves the study of Marketing &

promotional strategy of Nestle Maggi is completed by collecting data from
the below mentioned two sources-

Sources of Data collection

 Primary source
 The primary data used in this report include the questionnaire in which
the consumer/customer data is collected regarding their views towards
nestle maggi.

 Secondary source

This will include data collection from various websites and books. It also
includes data from company and other referral sites and sources.

LIMITATION OF THE REPORT

Every attempt will be taken to obtain the error free and meaningful result but as nothing
in this world is 100% perfect I believe that there will still the chance for error on account
of following limitations-

(1) Respondent’s unavailability.

(2) Time pressure and fatigue on the part of respondents and interviewer.

(3) Courtesy bias.

(4) The project undertaken needs a lot of secondary data so the availability and precision
of this data forms the major limitation as the biasness has to be minimized.

(5) The results and conclusions of the project cannot be generalized in all area of an
organization.

(6) There was a shortage of time and resources for the functioning the operation.
(7) The data in this study is maximum taken from the primary sources .so, these data is
not fully exact.

(8) There was a hurdle in the collection of data from primary sources i.e. risky as well as
incomplete.

CHAPTER- 3

ANALYSIS & INTERPRETATION

Q 2. What comes first in your mind when you hear the word MAGGI?

Noodle 35
Fast food 10
Snacks 5
None of these 0
 40

35

30

25

20

15

10

0
noodles fast food snacks none of these

Interpretation

Out of 50 around 35 agreed that when they hear the word MAGGI first noodles comes in
their mind & 10% said fast food & other said snacks.

Q 3. What is the brand that comes to your mind when we say the word noodles?

Maggi 38
yippie 10
Topramen noodles 2
 Anil noodles 0

50
40
30
20
10
0
maggi
top ramen
wai wai noodle
anil noodle

Interpretation

Out of 50 approx 38 % of people said when they talk about noodle maggie comes first in
their mind & 10% said yippie noodle comes in their mind & other said topramen.
Q 4. Rank the following Maggi products w.r.t frequency of purchase with being
the highest rank

Noodles 1 rank
Ketchup 2 rank
Soup 4 rank
pickles 5 rank
cubes 3 rank

Interpretation

No of customer given rank 1 to the noodles in purchase of maggi product, rank 2 to the
ketchup, rank 3 to the cubes, rank 4 to the soup & rank 5 to pickles in purchase of maggi
product.

Q 5. With what product would you associate the brand Maggi?

Ketchup 12%
Noodles 75%
Soup 10%
Masala 3%
 ketchup
noodle
soup
masala

Interpretation

75% of consumer associate the noodle with brand maggi, 12% consumer associate the
ketchup, 10% consumer associate with soup & 3% associate the masala with brand
maggi.

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

 Taste 5
Hygiene/purty 4
Variety/flavor 3
Availability 5
packaging 4

0
taste hygiene variety availability packaging

Interpretation
From the scale 1 to 5 the consumers gave 5(highest rate) to the taste & avalability, 4
rate to the hygiene/purity & packaging & 3(lower rate) to the variety & flavour. So the
company need to introduce maggi in different variety & flavour.

Q 7. Rank the categories which Maggi should look in future in order of your
importance:

Chocolate 7
Salted potato chips 15
Fruit juice 3
Processed foods 20
others 5

chocolate
potato chips
fruit juice
processed food
other
Interpretation

Here the consumer ranked the maggi should look in future in order their importance &
20% of people said it should be in prcessed food, 15% of people said it should be in salted
potato chips, 7% said it should be in chocolate , 3% in fruit juce & remaining said others.
So company should take the action to fulfill the consumer demand according to their
importance.

Q 8. How do you rate Maggi brand in terms of following parameters.

Expertise 4
Trustworthiness 5
Liability 3
None of these 1
 6

0
expertise trustworthiness liability none of these

Interpretation

The consumer rate the maggi in the parameters expertise, trustworthiness, liability, none
of these.they gave 5(highest) to the trustworthiness, 4 to expertise, 3 to liability &
1(lowest) to the other factores.

Q 9. How do you perceive Maggi products?

Good to health 15
Ready to eat 25
 Junk food 3
Tasty/fun eating 7

tasty/fun eating

junk food

ready to eat

good to health

0 5 10 15 20 25

Interpretation

25% of people percieve the maggi product ready to eat, 155 of people percieve good to
health, 7% of people percieve it as junk food & 3% percieve it as tasty/fun eating.

Q 10. Which Maggi products in noodles category do you regularly buy?

(Repositioning Awareness)
 Maggi masala 25
Maggi vegetable atta noodle 10
Maggi dal atta noodle 5
Maggi rice noodle mania 8
others 2

30

25

20

15

10

0
maggi masala maggi vegetable maggi dal atta maggi rice others
atta

Interpretation

Out of 50 half of consumer consume maggi masala, 10 consumer consume maggi

vegetable atta noodle, 8 consume maggi rice noodle mania, 5 consumer consume dal
atta noodle& remaninig consume other. So the marketing & sale of maggi masala noodle
is more as compared to other maggi noodle.
Q 11. Do you perceive maggi noodles as a healthy product?

Yes 35
No 15

yes
no

Interpretation

Out of 100% , 75% of consumers agreed that maggi noodles is a healty product & 25%
of consumers said that maggie noodle is not a healthy product.
STP ANALYSIS:

 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 have 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”.

SWOT ANAYSIS:

 STRENGTH:
 Established Family Brand.
 Strong Global Corporate Brand(NIL).
 Specialization in food processing category marketing and distribution in
urban market.
 Presence of other product segments of food category: dairy product,
chocolate, infant foods.
 Pioneer and leader so mover advantage in Noodles, Sauces, Ketchups
and Soup market.
 Nestle symbolization of warm, family & shelter.
 Research and development division in India.
 New Noodles plant in Uttranchal.
 WEAKNESS:
 Generic brand to Noodles in India.
 Low rural market presences constraints.
 Uniform brand for all food category.
 Brand proliferation.

 OPPURTUNITIES:
 Growing package and canned food market in India by15% annually.
 High brand awareness of Indian consumers.
 Other product category like Biscuits, Chips and ready to eat market still
unexplored.
 Opportunities to be substitute to other snacks category of food products.

 THREATS:
 Competitors with long history in product category Internationally like,
Heinz sauce and Ketchups of Heinz Indian, Top Ramen in Noodles and
Knorr soups.
 Single product focused competitors like Heinz sauce and Wai Wai
Noodles.
 Less entry barriers in the market segment for product category.
 ITC’s strong base in Indian market.
 Substitute product to product segment.
 CHAPTER – 4

CONCLUSION & RECOMENDATIONS

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 changing and
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 The year 2008 saw India leading in world wide 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:

 Foray into the other food products like chips, chocolates etc. under its sole
brand name Maggi as Maggi is a brand in itself which has been well recognized
by the masses.
 Maggi should Focus on creating a product that do not need any cooking.
  It should conduct promotional campaigns at schools in small towns with
population not more than 1000
 It should strengthen the distribution channel of the rural areas within 100km of
all the metros.
 It should launch new advertisement campaign (TV, radio, print media
commercials) with a brand ambassador or mascot

ANNEXURE

QUESIONNAIRE

Q 1. What product would you associate with the tag line mentioned below?

 Its different……………………………………………….
 Don’t be a noodle, be a snoodle…………………………………………
 2 minute noodles/bas 2 minute…………………………………………
 Jitna tasty, utna healthy……………………………………………
 Mummy bhook lagi h……………………………………………
 Try it with a twist…………………………………………..
 Hearty soup warm you from inside………………………………………….
 Fast to cook, good to eat………………………………………………..

Q 2. What comes first in your mind when you hear the word MAGGI?

 Noodles
  Fast Food
 Snacks
 None of these

Q 3. What is the brand that comes to your mind when we say the word noodles?

 Maggi
 Top Ramen
 Wai Wai Noodles
 Anil Noodles

Q 4. Rank the following Maggi products w.r.t frequenct of purchase with being
the highest rank

 Noodles ______
 Ketchup ______
 Soup _____
 Pickles _____
 Cubes _____

Q 5. With what product would you associate the brand Maggi?

 Ketchup
 Noodles
 Soup
  Masala

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

 Taste ____
 Hygiene /Purity ____
 Variety/Flavors ____
 Availability ____
 Packaging ____

Q 7. Rank the categories which Maggi should look in future in order of your
importance:

 Chocolates _____
 Salted potato chips ____

 Fruit juices ____

 Processed foods(ready to use pastes and masalas) ____
 Others(please mention) ________________

Q 8. How do you rate Maggi brand in terms of following parameters

Q 9. How do you perceive Maggi products?

 Good to health
 Ready to eat
 Junk food
  Tasty/fun eating

Q 10. Which Maggi products in noodles category do you regularly buy?

(Repositioning Awareness)

 Maggi masala
 Maggi vegetable atta noodles
 Maggi dal atta noodles
 Maggi rice noodle mania
 Others

Q 11. Do you perceive maggi noodles as a healthy product?

 Yes
 No
 BIBILOGRAPHY

 BOOKS:

GUPTA C.B., Marketing Management, Sultan Chand & Sons, 2004.

CHABRA T.N. & GROVER S.K., Marketing Management, Dhanpat

Rrai &Co.,2010.

 WEB SITES:

http://www.scribd.com/doc/19730142/MAGGI-2
http://www.scribd.com/doc/36716132/21954079-Maggi-Project-Final
http://www.scribd.com/doc/13487983/The-Maggi-Brand-in-India-
Case-Analysis
http://en.wikipedia.org/wiki/Nestle
http://en.wikipedia.org/wiki/Maggi
http://en.wikipedia.org/wiki/Fast-moving_consumer_goods