BACHELOR OF BUSINESS ADMINISTRATION

GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY, DELHI

ENTREPRENEURSHIP DEVELOPMENT
FIELD STUDY REPORT

TOPIC: TO STUDY THE CUSTOMER LOYALTY TOWARDS MAGGI

IN COMPARISON TO TOP RAMEN AND YIPPE

Session 2020-2023

Submitted To: Submitted By:

Dr. Sheenu Arora Name: Vishesh Bhatia
(ASSOCIATE PROFESSOR Enrollment no: 14117001720
MANAGEMENT DEPARTMENT ) Batch: BBA 5th SEMESTER
Div.-C
Shift: I

TECNIA INSTITUTE OF ADVANCED STUDIES

NAAC Accredited Grade ‘A’ Institute

(Approved by AICTE, Ministry of HRD, Govt. of India &IndraprasthaUniversity,Delhi)
PSP, Institutional Area, Madhuban Chowk, Rohini, New Delhi-110085
Email: Director.tecniaindia@gmail.com, Website: www.tecnia.in
Ph.: 27555121-22-23-24 Fax: 27555120

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 DECLARATION

I hereby declare that the following documented project report titled “TO
STUDY THE CUSTOMER LOYALTY TOWARDS MAGGI IN
COMPARISON TO TOP RAMEN AND YIPPE is an original and authentic
work done by me for the partial fulfilment of Bachelors of Business
Administration degree program at “TECNIA INSTITUTE OF ADVANCED
STUDIES ”
I hereby certify that all the Endeavour put in the fulfilment of the task are
genuine and original to the best of my knowledge & I have not submitted it
earlier elsewhere.

Name of Student: Vishesh Bhatia

Course: BBA
Class & Shift : SECTION B/5th/1nd
Enroll. No: 14117001720

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 ACKNOWLEDGEMENT

I would like to express my gratitude to my Guide for her constant guidance

to conduct the present arduous Project and untiring corporation which she
extended to me throughout the research. Getting a project ready requires
the work and efforts of many people. I would like to take an opportunity to
thank all the people who helped me in collecting Important and necessary
information and making of the project. I am grateful to all of them for their
time, energy and wisdom. At last, I would like to take this opportunity to
acknowledge the encouragement and support extended to me

Vishesh Bhatia
14117001720

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 INDEX

Introduction 4-6

Company Profile 7-10

Current Demand of Maggi 10-12

Competitors Analysis 13

How Maggi retainers it customers? 14

Annexure 15-22

Conclusion 23

Bibliography 24

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 MAGGI- 2 MINUTES NOODLES

Maggi, a product of Nestle, is a very well-known brand for its instant noodles in India since
1983. It had been the best-selling brand for instant noodles in India for over 30 years, and took
many twists and turns in its journey to success.
As India’s most favourite noodles that take only two minutes to cook when there is a time
shortage for making a wholesome meal or just a quick snack to curb the cravings, the Maggi
noodles are doubtlessly one of the most famous products.

Maggi is a product owned by Nestle India, one of the topmost leading fast food companies in
the country. The various Maggi products are instant noodles, stocks, ketchup, and instant soups.
The major products of Maggi are 2-minute Noodles, Maggi Masala-Ae-Magic, Maggi Sauces,
Maggi Rice Mania, and Maggi Magic Cubes. It is a product of Nestle India, a subsidiary of
Nestle of Switzerland. The different products of Maggi are manufactured in the seven
extremely technologically advanced factories of Nestle India that are located in Tamil Nadu,
Punjab, Karnataka, Goa, Uttarakhand, and Himachal Pradesh.
Maggi 2-Minute Masala Noodles is fortified with iron which will now provide customers 15
percent of their daily iron requirement.
Maggi noodles is a segment of about 70 percent of urban households in India and with more
than 2.5% Bio serves that are utilized by people every year, it can be an ideal carrier of iron
fortification and thus contribute to filling the iron deficiency gap. With this objective, Maggi
added Goodness of Iron in every packet.

SWOT Analysis of Maggi

Strength
• Maggi is the market leader in the noodles sector, with a high level of customer loyalty.
• Maggi is a top-of-mind brand thanks to its excellent advertising.
• The power of Nestle’s parent brand adds to the brand’s strengths.
• Maggi sells soups, sauces, and other items in addition to instant noodles.
• It’s simple to prepare and ready to eat. Noodles are very popular among students,
young couples, and teenagers.

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 • Maggi has a lot of exposure thanks to TV commercials, print ads, web ads, and out-
of-home media.

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

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 COMPANY PROFILE OF MAGGI

Maggi is a German brand of food. It is quick and easy solutions – like bouillons, soups,
seasonings and sauces – to aid cooking and add flavour. The company headquarter is in
Switzerland. The mission of Maggi is to become champion the goodness of home cooking,
renewing its global product portfolio with ingredients that people are familiar with, like those
they might find in their kitchen cupboard.

Points Information

Company Name Maggi

Date of Establishment 1884

Establishment Place Germany

Registered Address Switzerland

Net worth $12 Million

Parent Company Nestle

Establishment

Maggi established in 1884 by Julius Maggi. It contains vegetables and original flavours from
vegetables, herbs and spices, grains and other nutrient-rich ingredients. Maggi is an
international brand of seasonings, instant soups and noodles.

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Did you know?

• Every second, 4,600 food portions are prepared with Maggi across the world
• Every minute, consumers add 100 tonnes of fresh ingredients (meat, vegetables,
rice and so on) to their Maggi meals
• Every hour, Maggi delivers 900,000 portions of vegetables to consumers
through its products
• Compared to 2005, a year’s production of Maggi products already contains
more than 12,000 tonnes less salt – the equivalent of the Eiffel tower in weight.
Did you know Maggi India has just launched 4 new regional flavours?

Maggi have an exciting news for you all. Maggi India has just launched 4 new regional flavours
from 4 different parts of India.

Maggi 2-Minute Noodles Masala

India’s favourite Masala Noodles, MAGGI 2-minute Noodles, now comes with the goodness
of Iron. It provides you with 15% of your daily Iron requirement. Containing your favourite
masala taste, MAGGI noodles are made with the choicest quality spices. Make your bowl of
MAGGI even better by chopping up some vegetables, dropping in an egg or throwing in your
favourite ingredients. Usage Instructions: Prepare a delicious MAGGI in just 2 minutes – Boil
1½ cup of water and add the TASTEMAKER along with the noodle cake broken into 4. Cook
for 2 minutes in open pan, while you stir occasionally. Do not drain the remaining water. Store
any remaining MAGGI noodles in an airtight container to retain freshness. Serving
Instructions: Garnish with your favourite veggies and serve hot. Storage Conditions: Store in a
cool, dry and hygienic place to protect from insects, pests and strong odours.

MAGGI 2-Minute Instant Noodles, Special Chicken65 Masala

Chicken 65 is one of the most loved chicken dishes of India. Inspired by the masalas of this
popular dish, our in-house experts created Special Chicken65 Masala- a blend of 19 spices and
herbs that give your favourite MAGGI a spicy twist. Break the noodle cake into 4 parts. Add
noodles and the tastemaker to 210 ml. of boiling water. Cook for 2 minutes in an open pan. Stir
occasionally. Do not drain the remaining water. Hold for 1 min after cooking. Serve hot. Enjoy
your MAGGI noodles and consume a variety of other foods like vegetables, fruits and milk.

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Maggi 2-Minute Special Masala Instant Noodles

MAGGI introduces the New MAGGI Special Masala Noodles, a recipe of 20 Spices and Herbs.
Made with a blend of finely ground and whole spices, and herbs, the all new MAGGI Instant
Noodles have a special and flavourful tastemaker sachet inside. These spices have been roasted
to perfection, providing a distinct aroma and colour to your MAGGI noodles. Usage
Instructions: Prepare a delicious MAGGI in just 2 minutes – Boil 1½ cup of water and add the
TASTEMAKER along with the noodle cake broken into 4. Cook for 2 minutes in open pan,
while you stir occasionally. Do not drain the remaining water. Store any remaining MAGGI
noodles in an airtight container to retain freshness. Serving Instructions: Garnish with your
favourite veggies and serve hot. Note: It may contain milk solids, mustard and soya. Storage
Instruction: Store in a cool, dry and hygienic place to protect from insects, pests and strong
odours.

Company Logo

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 DEMAND OF THE COMPANY

SUPPLY AND DEMAND CURVE:

QUANTITY 50g 100g 200g 400g 600g

PRICE Rs5 Rs10 Rs20 Rs40 Rs59

Supply curve

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This is how the demand and supply curve of Maggie looked like.

But Impacted by the Maggie controversy, foods maker Nestle on Friday reported sales decline
of 22.6% for the October –December 2015 quarter over the corresponding year-ago quarter.

Full year net sales decreased by 17.2% mainly because of the Maggie crisis. Net profit for the
year decreased to Rs. 563 crore for the year, down from Rs.1185 crores in 2014. Net domestic
sales decreased 24 per cent while export sales decreased 2.2 per cent impacted by Maggi and
partially offset by the export of milk and nutrition products. Nestle said that net sales worth Rs
303.4 crore were reversed during the full year ended December 31. This can be explained clearly
by the leftward shift in the demand curve in the above diagram.

National food regulator Food Safety & Standards Authority of India (FSSAI) had banned sale
and production of Maggi noodles in June last year alleging that the 2-minute snack had excessive
lead and traces of monosodium glutamate. Following the ban, Nestle took a hit of Rs 450 crore
as it destroyed more than 30,000 tonnes of Maggi.
The product returned in November last year to stores after the Bombay High Court overturned
the ban. Maggi’s recall, the biggest such exercise in the country, led to Nestle India reporting a
loss of Rs 64 crore in the April-June quarter, the first time it had done so in three decades. Maggi
used to be Nestle India’s biggest brand, accounting for about 30 per cent of sales at the company.
The Maggi noodles maker's profit rose 8.3% to 6.68 billion Indian rupees ($81.1 million) in
the quarter ended Sept. 30.

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 PRINCING STRATEGIES

Maggi’s marketing strategy examines the brand using the marketing mix framework, which
includes the 4Ps (Product, Price, Place, Promotion). Product innovation, price strategy, and
promotion planning are just a few examples of marketing strategies. These business methods,
which are based on the Maggi marketing mix, contribute to the brand’s success. Maggi
marketing strategy aids the brand’s/competitive company’s positioning in the market as well
as the achievement of its business goals and objectives.

Marketing mix of Maggi

1. Product Strategy
Maggi is one of the leading food brands under the umbrella of Nestle. Maggi has a wide variety
of products and has a variety of ranges for each country. Its products are majorly categorized
into Maggi instant noodles, Sauce, Maggi soups, and Seasonings.
The instant noodles category has a vast variety and is very popular all across the globe. The
major products in this category are 2-minute Noodles, Vegetable Multigrain Noodles, Chicken
Noodles, Cuppa Mania, Oats Noodles, Hot Head Noodles, Atta Noodles. These variants are
the backbone of the product strategy in the Maggi Marketing Mix. The Maggi Soups category
has a vast variety of dehydrated soup mixes and products offered vary with countries. In India,
it is available in Tomato Margherita, Corn with pepper, Green pea with coriander, etc. Maggi
is present all across the world where it runs.

2. Price Strategy
Maggi uses a Cost-based Pricing Strategy to tap into different markets in the world.
The competitive prices are repaid with a high volume of the products. This shows the cost and
competition are the major factors in the marketing mix price strategy of MAGGI.
Because of rising prices in different countries, MAGGI has smartly started decreasing the
quantity to keep the price unchanged. Nestle strives to capture a high market share with
minimum prices and maximum quality standards. As Maggi is trying to tap into all segments
of income factors, it keeps differential prices depending on the locations across countries. Also,
its offering is available in a broad variety of packages so that people can buy according to their
needs. Recently, Maggi has started coming up with fresh products like the Hot Head Noodles

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and Cup range which it targets for the higher income level segment and hence are priced at a
higher range.

COMPETITORS OF MAGGI

As we all know, Maggi has certainly been the topmost leading brand in the noodle industry for
decades but there are many other brands as well which have given close competition to MAGGI
in the past as well as in the present.
Below are the top 2 Maggi competitors:
• RAMEN- The Ramen is the second top brand of Noodles in India and has been trying
hard for the last 18 years to beat Maggi. It is a global brand from Nissin, which was
launched in 1991. Top Ramen then was the heavy advertiser in the media. Another
factor was the promotion strategy and its interesting distribution strategy. Top Ramen
could not offer any serious differential to Maggi either in terms of the brand or product.
However, Maggi was able to gain back the lost position because it was the pioneer
brand that built the category.
• YIPPEE- Sunfeast Yippee is the recently launched noodles brand in India, which has
been dominated by Maggi for many years. Recently, this product has also seen a lot of
activity with the launch of many new brands like Knorr from HUL, Ching’s Secret by
Capital Foods, etc.

TOP RAMEN BY NISSIN FOODS

Nissin is a Japanese company established in 1948, which is known for being the first company
to make instant noodles. It is also the oldest and largest manufacturer of instant noodles in
Japan. Nissin foods opened there US subsidiary in 1970 and sold instant noodles under the
name of ‘Top Ramen’. Today, along with Japan Nissin is present in different countries like
India, Brazil, Hong Kong, Mexico, Europe, Thailand and Vietnam.

Nissin Foods Price/Pricing Strategy:

Below is the pricing strategy in Nissin Foods marketing strategy:

Nissin follows the competitive pricing strategy depending upon its key competitors in different
markets.

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The top competitors for Nissin are Nestle ltd, Knorr, Simply Asia, Lucky Me, La Choy, and
Pot Noodles. Nissin keeps its prices slightly lesser than the competitors in case of similar
products. For example, in order to tackle the existing large and loyal customer base of Maggi
instant noodles in India, Nissin had to come with more products and keep the prices lower than
that of Maggi. Along with that, they rarely offer discounts like buy one get one free. They are
constantly gaining customers via their cup noodles product range which is extensively available
in shops in all the countries of its presence. Along with these, Nissin has taken care of the local
tastes in different countries, like introducing Masala (Spicy) cup noodles in India, beef noodles
in EU, seafood noodles in Thailand, Indonesia, Hong Kong, Singapore, and China, Chicken
flavour in Brazil and USA.

YIPPIE NOODLES BY SUNFEAST

Yippie Noodles is one of many products that falls under the umbrella of Sunfeast Brand which
further falls under ITC Limited banner. Yippie Noodles is a direct competitor to a number of
instant noodle brands that cater to a majority of population in India. Instant noodles were first
fashioned by Maggi, which made the penetration of this food item deeper in every market in
India. Instant noodles see no differences in the society and irrespective of social gaps they cater
to a huge consumer base with low pricing. Yippie noodles have served the purpose of portfolio
expansion for ITC limited and has built a good competition for Maggi noodles.

Yippie Noodles Price/Pricing Strategy:

Below is the pricing strategy in Yippie Noodles marketing strategy:

Yippie is sold in a highly competitive market where sales of the product have a deep
relationship with the pricing.

Hence, a company like Yippie has to practice predatorial pricing strategy in its marketing mix
which offers cut throat competition to other brands and further digs into the competitor’s
market share. Yippie noodle yearns to steal market share from competitors and to achieve this
they have managed to reduce their price to the minimal. A Rs.10 packet of Sunfeast Yippie
Noodle can serve a single person for one meal. This offers a great value for the price a customer
has to pay.

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HOW DOES MAGGI RETAIN ITS CUSTOMERS?

When the parent company Nestlé decided to launch Maggi in India, they used their advertising
as a major promotional strategy to create awareness and recall the brand. Initially, it focused
on children and working women who have very little time to prepare meals. They also gave
toys and utensils along with packets of noodles as gifts, which created an attraction for
customers.

• Sales Promotion
Dry sampling and wet sampling are some strategies everyone can see in the supermarket.
Promoters always distribute packets of Maggi noodles both dried and wet samples (cooked
noodles) to the consumer. From the Nestlé webpage, consumers can get items that are
promoted in certain months.

• Advertising
Maggi advertised on children’s channels and mainstream television programs. The tagline “2
Minute Noodles” is known as the smartest tagline in the advertising industry and is still very
popular among consumers. To attract customers, it has announced several offers and schemes
over the years. Such as funny books, free Maggi products, scratch & win coupons, discounts
& cashback offers.
On its 25th anniversary, it began promoting voice over to create a nostalgic feeling among
customers about their journey with Maggi. It has also used the “Miss You Maggi”
advertisement campaign to get back lost customers after the Maggi ban in India. It also uses
many celebrities for brand endorsements like Amitabh Bachchan and Madhuri Dixit.

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You will find the Maggi advertisement heavier when bringing new products to market.
However, from time to time, it also advertises product redesign.

• Public Relations
Public relations is also done by Maggi through organizing some innovative campaigns. For
illustration, the campaigns of “Remembering your good old days with Maggi” and “Main Aur
Meri Maggi” campaigns were held by the company to celebrate 25 years of the brand and to
empower the connection of consumers with the brand through an emotional touch. To learn
more about how the company made its comeback.

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 RESEARCH METHODOLOGY

Survey done through questionnaire among the people to get to know about the Maggi and its
competitors.

Question 1. Have you ever heard of Top Ramen and yippie which are considered as
competitors of Maggi?

Result- It seems like most the people have heard of the competitors of Maggi which are top
ramen and yippie.

Question 2. What comes to your mind when hear the word noodles?

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Results- Most people usually gravitate towards Maggi when the word noodles is heard and
others towards top ramen. 5% consider chowmein when noodles word is heard around them.

Question 3- Have you tried the competitors of Maggi?

Results- Most of the people have tried both yippie and top ramen. There are just 20% who
haven’t tried any of these.

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Question 4. what Maggi products do you prefer?

Results-According to the survey 90% of the people prefer Maggi noodles from the Maggi and
just 5% prefer sauce and pasta.

Question 5. Maggi noodles are usually preferred by which category?

Results- Usually Maggi noodles are something teenagers gravitate towards which is even
reflected in the pie chart with a percentage of 75%.

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Question 6. which noodles do you consume on regular basis?

Results- As seen above, 70% consume Maggi on regular basis and other 30% consume top
ramen. Yippie is nowhere to be consumed on regular basis.

Question 7. In your opinion, is Maggi considered a healthy noodles?

Result- there’s a mixed response with 40% between both ‘No’ and ‘Neutral’ by the audience
and just 20% think that Maggi noodles are unhealthy.

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Question 8. Do you think ramen/yippie are easily available as Maggi?

Result – As shown above 75% of people think that ramen and yippie are easily available as
Maggi is and on the other hand only 20% think that it might not be as easily available as Maggi.

Question 9. Which noodles do you reach as a comfort food?

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Result- 70% of the audience consider Maggi noodles as comfort food and other 30% consider
top ramen whereas, yippie is nowhere to be seen in the pie chart.

Question 10. In your opinion, which noodles can be considered affordable?

Result- even though all the noodles have the same price range which is around Rs. 20-15 but
70% think that Maggi is affordable and other 30% think Top Ramen is affordable to them.
Question 11. If you had to choose 2 noodles between the 3. Which 2 would you choose?

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Result – Most people that is 70% of the audience chose Maggi and top ramen while only some
selected the other 2 options as seen above.

Question 12. How did you feel when Maggi was banned?

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 ANNEXURE

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 CONCLUSION

• Maggi has established a great position in the market and this product but as we can see
now Top Ramen is also emerging as a noodle that some people might prefer due to new
and changing trends in our country. If talked about Yippie as competitor, then Maggi
has nothing to worry about as it is not something the people around us prefer.

• Maggi original has been best, its flavours were not able to whet the appetite to the same
extent.

• Maggi from last 20 years has managed to remain unbeaten in the market because it has
always given more preference to the taste of people and its quality.

In a nutshell, Maggi is a successful company that has nailed its product offerings in both quality
and variety. It has embarked on a journey to help people of all walks of life with the main target
of children and working women. They offer affordable prices so that everyone can buy their
products. Its mission is to become an inspirational growth partner providing creative, branded
food and beverage solutions that enable operators to innovate and delight consumers and
its vision is to consistently market and sell high-quality food to meet customers’ daily needs.

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 BIBLOGRAPHY

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

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

• https://www.thehindubusinessline.com/catalyst/how-maggi-can-regain-its-
mojo/article7818883.ece

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