MINOR PROJECT REPORT

On

Marketing Strategies On Maggie

Submitted in partial fulfillment of the requirements

for the award of the degree of

Bachelor of Business Administration (BBA)

Semester-II (Paper Code- BBA 114)
To

Guru Gobind Singh Indraprastha University, Delhi

Guided By : Submitted By:

Name of Guide Akshat Mehta

36215501723

2023-26

NEW DELHI INSTITUTE OF MANAGEMENT

New Delhi – 110062

2020-23

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 CERTIFICATE

I, Mr./Ms.__________, Roll No. ______ certify that the Minor Project Report
(Paper Code BBA 114) entitled “___________” is completed by me by
collecting the material from the referenced sources. The matter embodied
in this has not been submitted earlier for the award of any degree or
diploma to the best of my knowledge and belief.

Signature of the Student:

Date:

Certified that the Minor Project Report (Paper Code BBA-114) entitled
______” done by Mr./Ms.______, Roll No. ____ is completed under my
guidance.

Signature of the Guide:

Name of the Guide:

Designation:

Date:

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 Countersigned
Director/Project Coordinator

DECLARATION

I hereby declare that this project report entitled Financial Statement Analysis of
Tata Motors Ltd. was carried out by me for the degree of BBA GENERAL
under the guidance and supervision of Dr Puja Chopra Associate Professor of
Department of Management, NDIM College. The interpretations put forth are
based on my reading and understanding of the original texts and they are not
published anywhere in any form. The other books, articles and websites, which I
have made use of are acknowledged at the respective place in the text. This
research report is not submitted for any other degree or diploma in any other
University.

Place: New Delhi

Name of the Student: Akshat Mehta

Class & Section: 2-C

Date: 27-5-2024

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 ACKNOWLEDGEMENT

I would like to thank our Principal Dr. Niraj RBL Saxena for their immense
support and blessings. I would like to express my special thanks of gratitude to
my research guide Dr. Puja Chopra, Associate Professor of Department of
Management for her valuable suggestions and guidance and for giving me the
golden opportunity to do this wonderful research project on the topic: Financial
Statement Analysis of Tata Motors Ltd., without her help it would have been
difficult for me to have reached this state of completion of my project report.
Also, I would like to thank my parents and friends who helped me a lot in the
preparation of this project.

I wish to acknowledge the help of all those who have provided me information,
guidance and other help during my research period.

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 CONTENTS
S. No. TOPIC Page no.
Chapter Plan
1 ChapterII:Introduction
1.1 Objectives of the
study
1.2 Review of Literature
1.3 Research
Methodology
1.4 Limitations of the
study
2 Chapter III:
Company’s Profile
2.1 S.W.O.T. Analysis of
MAGGI
2.2 Marketing-Mix of
MAGGI
3 Chapter III: Analysis
and Interpretation of
Data
4 Chapter IV:
Conclusion and
Recommendation

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 CHAPTER 1
INTRODUCTION TO MARKETING
STRATEGY

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MARKETING STRATEGIES
A marketing strategy is a process or model to allow a company or
organization to focus limited resources on the best opportunities to
increase sales and thereby achieve a sustainable competitive
advantage. A marketing strategy should be centered on the key
concept that customer satisfaction is the main goal.

A marketing strategy is most effective when it is an integral component of

corporate strategy, defining how the organization will successfully engage
customers, prospects, and competitors in the market arena. Corporate
strategies, corporate missions, and corporate goals. As the customer
constitutes the source of a company's revenue, marketing strategy is
closely linked with sales. A key component of marketing strategy is often to
keep marketing in line with a company's overarching mission statement.

A marketing strategy can serve as the foundation of a marketing plan.

A marketing plan contains a set of specific actions required to successfully
implement a marketing strategy. For example: "Use a low cost product
to attract consumers. Once our organization, via our low cost product,
has established a relationship with consumers, our organization will sell
additional, higher-margin products and services that enhance the
consumer's Interaction with the low-cost product or service."

A strategy consists of a well thought out series of tactics to make a

marketing plan more effective. Marketing strategies serve as the
fundamental underpinning of marketing plans designed to fill market
needs and reach marketing objective.

A marketing strategy often integrates an organization's marketing goals,

policies, and action sequences (tactics) into a cohesive whole. Similarly, the
various strands of the strategy, which might include advertising, channel
marketing, internet marketing. promotion and public relations, can be
orchestrated.

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 Advantage

Promotes Your Business to a Target Audience

You can’t sell your products or services without appealing to the people
most likely to buy those products and services. That group is known as
your target audience, and a marketing strategy is the most effective way
to reach that all-important group. If you have targeted this group correctly,
you know their habits, behaviours, wants, and needs, and you also know
where they like to hang out on social media. This information shapes
the methods you will use to promote your business. For example, if
you own a comic book store, online marketing can be more beneficial
than traditional advertising to help you reach your audience on social
media platforms.

Helps You Understand Your Customers

You have to do market research before you develop a marketing

strategy, and that research can provide you with reams of data that you
can use over and over to help refine your product development and to keep
up with trends and shifts in your target audience’s behaviour. With the
evolution of digital information, even small businesses have access to
hyper-detailed information about prospective customers. This is known in
the digital world as “big data,” large data sets that give you a deep analysis
into customer behaviour based on factors such as online activity, buying
activity, mobile activity, and interactions at stores and shops.

Disadvantage

Costs of Marketing

Although the digital revolution has somewhat evened the playing field,
the truth is that small business is still at a disadvantage, when it comes to

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grabbing their share of eyeballs through their marketing efforts. Big data
has great value, but accessing that data is expensive, and you have to
keep analyzing that data to stay abreast of buyer trends. Launching a
marketing campaign on your website can also be expensive, especially
if you’re using a pay-per-click strategy to attract more prospects.
Television and radio advertising spots are also costly, and even local
advertising space is at a premium, because there is so much competition
for the local audience.

Disadvantage: Time and Effort May Not Yield a Return

Big brands can afford to spend time and effort working on a marketing
campaign that fails, because they have the resources to regroup and
move on. As a small business owner, however, the return on investment
on a marketing campaign may be low, and that means you have spent
months crafting a strategy that did nothing to help your bottom line. Even
the most well-planned marketing campaigns fail, and at the small business
level, that can set you back for months.

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 OBJECTIVE OF STUDY

The project aims at understanding the Marketing strategies of Nestle Maggi.

Researchers 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.

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 REVIEW OF LITERATURE
Anmol Yadav, Aditi Singh

NEW GUIDELINES TO ECOMMERCE COMPANIES MIGHT IMPACT FDI IN

INDIA TRANSFORMATIONAL LEADERSHIP THROUGH POLICY
INITIATIVES: THE CASE STUDY OF INDIA, 95

A brand is all about the promises and perception that an organization

wants its customer to feel about its product and services. When an
organization, under its name, advertises and markets its various products,
it is known as corporate branding. When the organization undertakes a
marketing strategy in which only the product’s name is accentuated
without focusing its corporate brand’s name even on the product
labeling or product name, then it is known as product branding. Every
corporate brand has at least an august product by which it is
distinguished. Thus, that product becomes the main source of
popularity and profit for its corporate brand. But, if any accusation or
criticism, whether it is true or false, on this very product is made, then it
could also lead its corporate brand into a debacle. The same thing
happened when the false allegations were made on the top trending
product brand-MAGGI, which bumped its corporate brand-NESTLE into a
loss of435 crores.

Business: theory and practice 11 (4), 345-352, 2010

The results of this study were summarized and the most

fundamental conclusion was made that the most successful companies
are not more successful because of any superiority in strategic planning. It
is impossible to determine whether a strategy was correct or not if the
implementation of this strategy is unsound. The implementation of the
marketing strategy is effective and the strategy is appropriate if the targets
of the company met requirements for growth, share and profits. The most
important factor indicating the success of the marketing strategy is the
customers’ value creation by meeting their needs (Alvin J. Silk 2006). The
problem exists how to evaluate and calculate in a quantitative manner the
customers’ satisfaction factor. The additional efforts and resources are
necessary.

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 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
maggie .

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

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13
 LIMITATIONS OF STUDY

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) Respondents 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.

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 CHAPTER 2
INTRODUCTION TO COMPANY’S
PROFILE

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 INTRODUCTION TO COMPANY PROFILE

Background - Nestle India ltd: - Nestle India Limited (NIL) is the

Indian subsidiary of the global FMCG major, nestle SA. Nestle India Ltd.
Introduced Maggi Brand to the Indian consumers with the launch of
Maggi 2 Minute Noodles, an instant food product, in 1982. With the launch
of Maggi noodles, Nestle India Ltd. Created an entirely new food category -
instant noodles - in the Indian packaged food market, Nestle, which
world knows Cautious and conservatory company is a Swiss originated
140 years old Multinational. The man at the helm is Swiss national Carlo
Donati, an all inspiration and image of the company.

His philosophy is 'bottom line dictating top line' based on delegation

and decentralization. It resulted from a merger in 1905 between the
Anglo-Swiss Milk Company for milk products established in 1866 by the
Page Brothers in Cham, Switzerland and the Farine Loot, Henri Nestle
Company set up in 1867 by Henri Nestle to provide an infant food
product. Nestle India's business objective and that of its management
and employees is to manufacture and market the Company's products
in such a way as to create value that can be sustained over the long
term for consumers, shareholders, employees, business partners.

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The product mix of Nestle India consists of milk products and baby
products (42.5% ), beverages (29.3 % ), processed foods (14.4%),
chocolate and confectionary (13.8 %).nestle India plans to expand
business into similar and diversified product categories. With an
Employee strength of over 3000 and turnover a US$ 497 million in
2003. Nestle. India is one of the leading companies in the FMCG space in
India. The company is acknowledged among India's most respected
companies and among the top Wealth Creators of India.

THE COMPANY'S HISTORY

Year 1870-The Swiss Julius Michael Johann. Maggi (1846-1912) Inherited

the family business: a mill Kemptal, near Zurich.

Year 1886- Several women were factory workers, thus the time
available for housework a. the preparation of meals was considerably
reduced, a, working class families suffered from poor nutrition. In view 46
161 states of affairs, the doctor Schuler recommended the wide use of dried
vegetables: pea's a beans given 11616 466 nutritive values. Julius Maggi
produced appliances for roasting and grinding these vegetables, to make
flour from peas, beans, lentils etc., and enabling housewives to make a
quick nourishing soup.

Year 1900- At the Universal Exhibition, Maggi won several medals and
grand prizes. Jules Magi set up home in Paris. The French head office
was on the Place de l'opera, and the factory on the Boulevard Arago.
Maggi now had depositories in Paris, Berlin, Singen (Germany), Vienna
and Bregenz (Austria). A number of advertising texts written by Franck
Wedekind had strong military undertones.

Year 1947-Maggi merged with the Nestle India firm.

Year 1948-Sopad took over from Nestle to handle production and

marketing for Nestle and Maggi products in France. Maggi now had
eleven factories throughout the world.

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Year 1982-Nettle India Ltd. Introduced Maggi to the Indian consumers with
the launch of Maggi 2 Minute Noodles, an instant food product, in 1982.
With the launch of Maggi noodles, Nestle India Ltd. Created an entirely new
food category - instant noodles - in the Indian packaged food market.

Year 1984-Eating habits changed, and Maggi adjusted their products, with
low fat Bouillons, Bouquet Garni ("a little extra to add taste and give your
dishes a festive look I"), and "Soupes Moulinees", a new line to add to
their "Soup Time" range. The ad announcing the new "Maggi Dabelin
mix" had two sections: on the "BEFORE" page, a man disguised as an
oriental wise man levitates a magnificent souff12, on the "AFTER" page,
the same man holds the Maggi sachet in his hands. The magic formula to a
successful [Dabelin!]

Brand - MAGGI

Maggi is an over 100-year-old Nestle band of instant soups, stocks,

bouillons, ketchups, sauces, seasonings and instant noodles. It quickly
became a pioneer of industrial food production, aiming the improvement of
the nutrition of worker families.

Over time the scope of MAGGI has been extended from a

predominantly dehydrated cooking aid brand towards a general savory
food brand including many types of ready meals and also frown food. This
is in line with the fact that people all over the world are cooking less and
less from scratch.

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 MAGGI BRAND IN INDIA

Maggi Comes to India - teething troubles Maggi noodles a launched in India

in the early 1980s. Carlo M. Donati, the present Chairman and Managing
Director of Nestle India Ltd, brought the instant noodle brand to India
during his short stint here in the early eighties. At that time, there was
no direct competition. The first competition came from the ready-to-eat
snack segment which included snacks like samosas, biscuits or maybe
peanuts, that were usually "the bought out' type.

The second competition came from the homemade snacks like pakoras
or sandwiches. So than were no specific buy and make snack!
Moreover, both competitors had certain drawbacks in comparison.
Snacks like samosas are usually bought out, and outside food is
generally considered unhygienic and unhealthy. The other competitor,
'homemade' snacks overcame both that problems but had the
disadvantage of extended preparation time at home. Maggi was positioned
as the only hygienic homemade snack! Despite this, Nestle faced difficulties
with their sales after the initial phase.

The sole reason being, the positioning of the product with the wrong
target group. Nestle had position. Maggi as a convenience food product
aimed at the target group a working woman who hardly found any
time for cooking. Unfortunately, this could not hold the product for very
long. In the course of many market researches a. surveys, the firm
found that children were the biggest consumers of Maggi noodles.
Quickly they repositioned it towards the kids segment with various tools
of sales promotion like color pencils, sketch pens, fun books, Maggi clubs
which worked wonders for the brand.

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 PRODUCT LIFE CYCLE OF MAGGI

The product life cycle is the period of time over which an item is
developed, brought to market and eventually removed from the market.
First, the idea for a product undergoes research and development. If the
idea is determined to be feasible and potentially profitable, the product
will be produced, marketed and rolled out. Assuming the product becomes
successful; its production will grow until the product becomes widely
available. Eventually, demand for the product will decline and it will
become obsolete.

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 INTRODUCTORY STAGE

Nestle launched Maggi in India in the year 1982 with its 2 minutes'
instant noodles. When Nestle launched this product there were a lot of ups
and downs, with high failure rates. Maggi then had no competition and
incurred high production cost. A lot of research was also done in this
stage which caused frequent modifications.

GROWTH STAGE
Around 1985, the demand for Maggi had increased tremendously in India.
The entire development cost was recovered and moreover its sale rates
had also increased. In 1990 the demand for Maggi had dropped a little
because of an introduction of a new brand named Top Ramen. So in order
to increase its sales Nestle formulated a new flavor which wasn't well
accepted by its consumers. Thus in 1999, Nestle re-launched the old
flavor of Maggi, which in turn increased its sales.

MATURITY STAGE

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During its maturity stage, Maggi's sales were at peak, production costs were
low and profits were high.

DECLINE STAGE
As we all know that Maggi is now banned in India due to its high lead
content. Thus it is going through its declining stage now. Nestle is
conducting a lot of research and if they come up with something new and
better, then Maggi might be selling its products in the future, or else after
the declining stage, this brand would become history in India.

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 MAGGI BANNED IN INDIA

The Bombay High Court on Thursday set aside the countrywide ban on
nine variants of Nestle's Maggi instant noodles, saying the national
food regulator had acted in an "arbitrary" manner and not followed the
"principles of natural justice" while banning the product.

The court, however, ordered Nestle India to conduct fresh safety

tests on the product before relaunching it.

The Indian unit of Nestle had challenged a june 5 order of the Food
Safety and Standards Authority of India (FSSAI) and a similar order by
the Maharashtra Food and Drug Authority (FDA) directing it to
withdraw all variants of the noodles, citing the presence of excessive lead.

While setting aside the ban, Justices V M Kanade and B P Colabawalla

clarified that Nestle India has to send five samples of the noodles in its
possession for fresh tests before bringing it back to the market.

The court said it was still public concerned about public health
and public interest even though it is two minute noodles it took us a lot
time the court said ,minute after setting aside

The tests will be carried out within six weeks at three centers
accredited and recognized by the National Accreditation Board for
Testing and Calibration Laboratories (NABL): Vimta Labs,

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Hyderabad; Punjab Biotechnology Incubator, Mohali; and CEG Test
House and Research Centre Pvt Ltd, Jaipur.

Reacting to the order, Nestle welcomed the decision and said it would
undertake fresh tests of Maggi noodles.

Referring to the ban, the high court observed: "(The) principles of

natural justice have not been followed before passing the impugned order
and on that ground alone impugned orders are liable to be set aside,
particularly when the petitioner (Nestle India), one day prior to the
impugned order, had given a press release that it had recalled the product
till the authorities were satisfied about the safety of the product.

The court also said that the food labs engaged by the FSSAI which
found excessive lead in Maggi noodles, were not "authorized" under the FSS
Act and Regulations. Therefore, the results could not be relied upon, it said.

Besides, the mandatory procedure of giving a notice under the

provision of sampling and analysis was not followed, the court said.

During the arguments, FSSAI had alleged that Nestle India could not
claim any relief as it had suppressed facts and attempted to destroy
evidence. The High Court, however, negated this line.

Another question was whether FSSAI could impose a ban on Maggi noodles
on the grounds that the lead found in tests was in excess of what the
company had represented on its product approval application-it was
below the maximum permissible limit. The answer to this was also
negative, the court said.

As to the question of whether the FSSAI had "unfettered" discretion to

decide on standards to be maintained by companies such as Nestle
India which manufactures proprietary food or non standardized food,
the court's response was again 'no'.

The court also observed that lab reports obtained by the company from
its labs and other accredited labs could not be considered.

Soon after the High Court passed its order, the FSSAI and the FDA
sought a stay. The court, however, observed that Nestle India had already
said that it was not going to either manufacture or sell Maggi noodles and

24
refused to oblige the two agencies. The court also allowed the company to
seek approval for its tenth variant. Maggi Oats Masala Noodles.

The company had earlier argued that the CEO of FSSAI while passing the
order had acted in an emergent drastic and arbitrary fashion while raising
doubt over his jurisdiction.

Nestle also argued that the food regulator had not served any
notice before ordering a ban. Nestle claimed it has been operating In India
for 30 years and had a global footprint.

The government has also filed a class action suit against Nestle India
seeking, Rs 640 crore in damages for alleged unfair trade practices,
false labeling and misleading advertisements.

"Nestle India respects the decision made on August 13 by the

honourable Bombay High Court to revoke the ban order passed by the
Food Safety and Standards Authority of India (FSSAI) and FDA,
Maharashtra, on Maggi noodles and will comply with the order to
undertake fresh tests," the company said.

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 MARKETING STRATEGY OF MAGGI

Marketing strategy is a long term course of action designed to

optimize allocation of the scarce resources at the disposal of a firm in
delivery superior customer experience and promote the interest of stake
holders of maggi .

Initial Strategies of Maggi: -

Maggi has faced lot of hurdles in its journey in India The basic
problem the brand faced is the Indian psyche Initially Nestle tried to
position Maggi in the platform of convenience targeting the
workingwomen. However, the sales of Maggi was not picking up despite
of heavy media advertising. To overcome this Nestle conducted a research,
Nestle promotion positioning the Maggi product as a "convenience
product' for mother and as a 'fun' product for children. The Maggi
Tagline", "Fast to Cook Good to Eat' was also in keeping with its
positioning. They promoted the product further by distributing flee
samples. Giving gifts on return of empty packets, etc. Effective Tagline
Communication.

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MAGGI STRATEGY
The needs that the product is trying to address are very explicit. It is
a tasty snack This satisfies hunger and takes very less time and efforts for
preparation. People feel like eating Maggi because it satisfies hunger and
tastes superb.

EARLY STRATEGY AND LAUNCH

In India it was launched in 1980s by Nestle group of companies .Maggi has
faced Of hurdles in its journey in India. The basic problem the brand faced
was the Psyche. I.e. Indians used to be conservative about the food habits so
noodles faced a lot of problem in promoting sales

Initially nestle tried to position the Noodles in the platform of

convenience targeting the working women. However, the sales of Maggi
were not picking up despite of heavy Media Advertising. To overcome
this NIL conducted a research, which revealed that it was children who
liked the taste of Maggi noodles and who were the largest consumers of
the product. So they came up with Maggi- 2 minute noodles with price
of Rs. 2.10 with a close of 100% margin. NIL shifted its focus from
working women and targeted children and their mothers through its
marketing. NIL's promotions positioned the noodles as a 'convenience
product', for mothers and as a 'fun' product for children. The noodles
tagline, 'Fast to Cook Good to Eat was also in keeping with this
positioning.

MARKETING STRATEGY -EXPLORING VALUE CREATION

OPPORTUNITIES

27
Customers
Noodles industry has a wide range of customers ranging from children
(<16 years) to youth and adults (<35 years) • Primary targets consumers
for Maggi noodles are kids in the age group of4-16 years, attracted to the
product because of its taste. Youth also like eating Maggi because they like
its taste and don't like putting much effort to prepare food. Working
professionals value the product mainly because of its ease of preparation,
taste and time factor.

MARKETING STRATEGY -EXPLORING VALUE CREATION

OPPORTUNITIES

28
MARKETING STRATEGY-COMPANY ANALYSIS DETAILS

SWOT ANALYSIS

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

Strengths:
• Established Family Brand
• Strong Global Corporate Brand (NIL)
• Specialization in food processing category marketing and distribution
in Urban
• Market leader
• Pioneer and Leader so 1" mover advantage in Noodles, Sauce,
Ketchups and Soup market

29
Weakness:
• Generic Brand to Noodles in India • Low rural market presence
constraints
• Uniform Brand for all food category. Heavily dependent on one flavor

Opportunities

• Growing package and canned food market in India by 15% annually.

• High brand awareness of Indian consumer Opportunity to be
substitute to other snacks category of food products.
• Unexploited rural market Increasing number of working youth
• Affinity of Indians to Chinese food Health related issues

Threats:
• Competitors with long history in product category Internationally
like, Heinz Sauce and ketchups of Heinz Indian, Top Ramen in
Noodle 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
• Competitive pricing

30
 MARKETING STRATEGY- CHOOSING VALUE STPD
ANALYSIS
A marketing strategy is based on expected customer behavior in a
certain market. In order to know the customers and their expected buying
behavior, a process of segmenting and positioning is used. These
processes are chronological steps which are dependent on each other

STPD 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
has segmented the market on the basis of age, life style, and habits of
urban families.

Children:
Children play a significant role in decision making and purchase choices of
just about anything ranging from food items to beverages to
chocolates. As consumers, children know exactly what they want and
do not experiment too much with flavor or color.

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Teenagers:
On the brink of adulthood, teenagers like to emphasize and express
themselves in a manner that catches attention. They have experimental
with their food with preference towards innovative offerings but form
strong opinions which they carry forward in life. They are also
predisposed towards snack items as they tend to feel hungry between
traditional meals. They have a lot of say about the food that they want to
consume with limited parental control.

College Students:
A rise in the number of colleges and institutions of higher
learning both government owned and privately financed has enabled a
larger number of youth to graduate from their portals. This population
grew since 2000 but is set to stagnate in the forecast period with
couples actually postponing the child bearing decision and some even
rejecting the idea of having on eat all. This age group has taken up to
snacking as a way of life as they keep missing. regular meals due to erratic
schedules. They have longer waking hours and due to this the traditional
three meals do not suffice with the need for filling snacks.

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Middle Aged Adults:
These middle aged men have strict preferences over food and they
generally stick to their choices. They experiment less and go for
products that will enhance their social status. The women in this age
group are ones who the primarily buy food items for the entire
household though their choices are shaped by the preferences of the
household members. The women in this segment play an important
role as most of the choices of food items have to pass their scrutiny
before it is consumed in the household .

TARGETING:
Market Targeting refers to evaluating and deciding from amongst
the various alternatives, which segment can be satisfied best by the
company. The Maggi Brand has mainly targeted the Kids, Youth. Office
Goers and Working Men & 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 maximize the potential benefit to the firm.
Maggi has positioned itself in the SNACKS (Between two meals) 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.

DIFFERENTIATION

Points-of-difference (PODS) are attributes or benefits consumers

strongly associate with a brand, positively evaluate and believe they could

33
not find to the same extent with a competitive brand. The Maggi Brand has
also differentiated its brand image from its competitors in terms of taste,
flavors and packaging. Maggi have launched wide varieties of products in
different flavors which can attract larger set of customers. Maggi
products are also available in different sizes catering to different
customer needs.

MARKET PENETRATION STRATEGIES

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 daal Atta noodles cup a
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
faces. Challenges. Some of these are!

• Sales saw decline in 1990: The Company saw a decline the sales
in 1990. When the company tried to find out what the reason was,
they came to know that there was something wrong with the formula
that spoiled the taste. So the formula was changed 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 fail - Nestle decided to
expand its offerings by offering DaalAtta 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.

34
 MAGGI RELAUNCHIN INDIA

It was Diwali two days in advance for several grocery stores and customers
in the city Departmental stores across Mumbai had a special display
Monday, right on their entry gate in bold letters: "We are back", "Maggi is
back". By the end of the day, several small-time grocery shop owners
admitted their entire stock had been sold out once the word spread in the
locality.

In a special rollout, Nestle, apart from re-launching Maggi noodles back into
the market, also tied up with online portal Snap deal to register requests for
home delivery of Maggi noodles starting Tuesday. "We will start taking
orders from Tuesday. But delivery will be made after Diwali," a Nestle
spokesperson told Devital Manager Maggi Gayeri, of Roman back
supermarket on Yari Road in Versova, said he noticed a palpable excitement
among the customers when they spotted Maggi back on the shelves, "We
have already sold 15 to 20 packets. The word will spread to the entire area
now." he said Gayeri added that he had been receiving queries from
regular customers frequently about the anticipated relaunch date of
Maggi. "While we did manage to sell other brands when Maggi was banned,
our sales dropped significantly," he said. At his store, the maximum
packets were purchased by kids on Monday. At Society Stores,
Lokhandwala, three cartons of Maggi noodles were ordered (288 packets),
By 8.00 pm, less than a dozen were left. "We realized that people have
been tracking the launch date of Maggi. Everyone who visited the store
purchased a packet today," said Manan Gade, who sits at the counter.

The store had made special arrangements to launch the noodles:

"We had decorated the shelf with stickers. Posters with "We are
back" were put everywhere," Gade added.

While some shops managed to procure the product on the first

day of its relaunch, several stores were asked to wait due to high demand.
At departmental chains such as Big Bazaar and Star Bazaar the product
was yet to hit the shelves. "We placed an order for all our stores in
Mumbai. But the delivery will come on November 16," said Suresh, from
Great Home stores, Andheri West. According to him, several small shops

35
in his area are waiting for Maggi's delivery. "A lot of people have inquired
about the noodles in the last few days." Suresh admit Maggi noodles is
presently being manufactured at three locations Nanjangud (Karnataka).
Moga (Punjab) and Bicholim (Goa). For the other two locations at Tahliwal
and Pantnagar. Nestle is engaging with authorities to obtain
permissions to initiate manufacture.

"We will make our best endeavor to reach the product to our consumers
at the earliest. We are in touch with our channel partners and distributors
to achieve this," a release from the company said.

"The return of Maggi Noodles on the auspicious occasion of Deepawali

and on the day of Dhanteras is a moment of celebration for all of us... On
behalf of over 7,000 Nestle India employees, I would like to thank
all our suppliers, distributors, retailers, and millions of consumers from
every corner of India and overseas for their support," said Suresh
Narayanan, Chairman and Managing Director, Nestle India.

Meanwhile, the Food and Drug Administration (FDA) is set to

routinely test samples of Maggi noodles once they hit the entire market in a
few days.

"We will continue the routine procedure of testing packaged food items
to check for any contravention as per Food Safety and Standards, Act. In this
case, if any norm is flouted, we can send another notice to Maggi," said
Dr Harshdeep Kamble, FDA commissioner.

Last month, Nestle received clearance from three laboratories, as

per the Bombay High Court's directive, for safety of its noodles. The
laboratory test was conducted to check whether excessive lead was still
present in its noodles. The product was banned earlier this year after
excessive lead and monosodium glutamate, a flavor enhancer. was found in
it.

36
 MARKETING STRATEGIES OF MAGGI TO RELAUCH IN
INDIA

Nestle India has increased its marketing of Maggi as it prepares to

present results of the re-test conducted on samples of the instant noodles
brand to the Bombay High Court.

The court had on August 13 order directed the company to complete the
tests in six weeks. Nestle has tied up with smartphone apps to create a buzz
around the year-end re-launch. Users of apps like Haaptik, an
online directory, are receiving mailers that the service will alert them
when Maggi arrives in stores.

The company has been uploading videos for its Miss-You Maggi
advertising campaign unveiled a month ago. The advertisements speak of
how Maggi was a crucial snack at any time.

The Miss You Maggi campaign is supported by a twitter hashtag 'we

miss you too' that had surfaced right after the Bombay High Court verdict
on August 14. The hashtag has received about five million impressions,
according to Mind Shift Metrics, a digital agency that maps reach and
trends on social media.

Nestle has also uploaded a new corporate advertisement on

YouTube that highlights its journey in India over 100 years. While Maggi is
not part of this film, brand experts said the assurances of safety and quality
would rub off on the brand as well. Nestle India Managing Director Suresh
Narayanan recently said the company would ensure Maggi's relaunch was
a memorable experience. Many of these initiatives would be digital,
Narayanan said, to address "24 by 7" audiences.

It is unclear whether Nestle will appoint brand ambassadors for

Maggi. Narayanan admitted the company had not thought about it. During
the Maggi recall, the brand's past and present endorsers, including actors
Madhuri Dixit, Amitabh Bachchan and Priety Zinta, were served notices
by the Uttarakhand Food and Drug Administration for making false claims.

37
 SOCIAL MEDIA SUPPORT TOWARDS MAGGI

When the Maggi ban was first heard of, social media went buzzing
with hilarious memes as well as genuine queries from consumers.

According to an analysis done by Simplify360, it was found that the

general tone of the posts on the social media sites, tend to suggest a
high degree of disbelief and hurt that a trusted brand would stray
from the path. Topics like #Maggiban, #Maggilnasoup kept on trending for
weeks. On June 5 the global head of Nestle decided to withdraw all the
variants of Maggi from India, citing that the current scenario is not
conducive for the brand. Commenting on whether Maggi has taken the
right that social media Kathuria. Chief taken the right strategy, Vinish
Operating Officer, Digital Quotient said. "There is no right and wrong
thing in this case. Being a global brand, there must be few guidelines
which they have to adhere to like-Don't speak much in moments of crisis.
The reason being. sometimes over communication can infact magnify the
initial problem and they may face some legal consequences because of it.
But from my point of view, right now the communication route which
Maggi has taken is quite passive, which loyalists might not appreciate. It is
very important to keep these followers on your side; a certain appreciation
for the fans is not a bad idea. Don't be aggressive, but a non-product
consumer centric strategy is recommended."

Advertising & Film Productions feels the only reason why the brand
should continue with its social media communication is because, if you
keep mum, then things have a tendency to blow out of proportion. "So
whatever the situation might be, whether positive or negative, the
brand needs to communicate in a polite and a positive way.

Even if they don't have any backup plan, they should assure people that
they are working towards it. Maggi has played a vital role in everyone's life
and has been like their best friend in moments of crisis. It is now very
difficult for people to accept, that their favorite brand which boasts of
several varieties is not there." he cited.

38
 CHAPTER 3
Data Analysis and Interpretation

39
 Data Analysis and Interpretation

This is concerned with data presentation of the findings obtained through

the study . The findings are presented in tabular and diagram from after
analyzed to facilitate readings and understanding.

GENDER:

INTERPRETATION:

In the above survey 56.9% are male respondents and 43.1% are
female respondents .

40
AGE GROUP

INTERPRETATION:

Out of 51 responses

1. 84.3% are from the age group of 15-20.

2. 13.7% are from the age group of 20-25.

3. And rest are from 25-30.

41
OCCUPATION

INTERPRETATION:

1. The above diagram shows that mostly people have respomdent belongs
to the occupation category of student.

2. This second category lies in the occupation category of both private and
govt employee.

42
INCOME PER MONTH

INTERPRETATION:

1.The major income of respondent is below 10000

2. 14.9% people have income 40000 and above

3.10.6% respondent have income between 10000 and 20000.

43
AREA OF RESIDENCE

INTERPRETATION:

1. Majority of the respondent are from urban area

2. Where as 15.7% are from rural

3. Some of them are from semi urban.

44
DO MAGGI PRODUCE HHYGIENIC NOODLES ?

INTERPRETATION:

1. We can see that majority of respondent think that maggi produce

hygenic noodles i.e.,86%

2. And 14% disagree to this.

45
HOW IS THE TASTE OF MAGGI?

INTERPRETATION:

1.According to the responses 42% respondent thinks that maggi

noodles taste very good as well as good.

2.16% people thinks that it tastes average.

46
HOW OFTEN DO YOU EAT MAGGI NOODLES ?

INTERPRETATION:

1.Here we can see that 58.8% people eat maggi once a week

2. 25.5% people eat maggi once a month

3. where as 9.8% respondent eat maggi daily

4.lastly 5.9% people eat maggi once in few month.

47
DO YOU KNOW NEW MAGGI NOODLES?

INTERPRETATION:

1. More than half of the respondents did knew about new maggi
noodles i.e., 58.8%

2. Whereas 41.2% respondents are not known to new maggi noodles.

48
IS PRICE OF MAGGI AFFORDBLE?

INTERPRETATION:

1. The above diagram shows that most people who have responded agrees
for the maggi price

2. And 10% of them disagree with the price.

49
MAGGI NOODLES ARE VERY TASTY?

INTERPRETATION

1. Here more than half of the people agree that maggi noodles is very tasty

2. 19.6% peoples belive that the taste of maggi is neutral

3. 17.6% of people think that the taste of maggi is good

4. 5.9% disagree with the taste of maggi

50
PEOPLE EAT MAGGI NOODLES REGULARY?

INTERPRETATION:

1. According to this most of the people agree to eat maggi regularly.

2. 25.5% respondants are neutral about eating maggi regulary

3. 23.5% strongly agree to eat maggi regularly

51
THE PRICE OF MAGGI NOODLES ARE LOW?

INTERPRETATION:

1.Majority of the people agree that price of maggi noodles are low.

2. where as 27.5% of the respondent are neutral about the price

3. 15.7% of the respondent disagree about the low price.

52
MAGGI NOODLES PROVIDE ATTRACTIVE ADVERTISING?

INTERPRETATION:

1. According to the above diagram most of the respondant agrees that

maggi noodles provide attractive advertisement.

2. 23.5% of the respondent are neutral about the advertisement .

3. Least number of people strongly agree about this.

53
MAGGI SHOULD CHANGE THEIR NOODLE TASTE?

INTERPRETATION:

1. We can see that most of the people disagree changing the taste of maggi
noodles.

2. 19.6% people are neutral about changing taste.

3. Where as 17.6% people strongly agree to change the taste of maggi

noodles

4. 15.7% disagreed

5. And least number of people strongly agreed.

54
MAGGIE IS ALWAYS AVAILABLE IN NEAREST MARKET?

INTERPRETATION:

1.Most of the people agrees that maggi is always available in the nearest
maket.

2. 27.5% of the respondent strongly agrees

3.very few people are neutral about it .

55
MAGGIE NODDLES FOR ALL CLASS OF PEOPLE?

INTERPRETATION:

1. Majority of the respondent agrees that maggi noodles are for all class.

2. 19.6% respondant strongly agree as well as neutral about this.

3. least number of people strongly disagree.

56
 QUESTIONNAIRE
1. Name

2 . Gender

o Female
o Male
o other

3 . Age group

o 15-20
o 20-25
o 25-30
o 30-35
o 36 and above

4 . Occupation

o Student
o Private employee
o Government employee
o Other

5 . Income per month

o Below 10000
o 10000-20000
o 20000-30000
o 30000-40000
o 40000and above

57
6 . Area of residence

o Urban
o Semi urban
o Rural

7 . Do Maggie produce hygienic noodles ?

o Yes
o No

8 . How is the taste of Maggie ?

o Very good
o Good
o Average
o Poor
o Very poor

9 . How often do you eat Maggie noodles ?

o Daily
o Once a week
o Once a month
o Once in few months

10 . Do you know new Maggie noodles ?

o Yes
o No

58
11 . Is price of Maggie affordable ?

o Yes
o No

12 . Maggie produces hygienic noodles ?

o Agree
o Strongly agree
o Neutral
o Disagree
o Strongly disagree

13 . Maggie noodles very tasty ?

o Agree
o Strongly agree
o Neutral
o Disagree
o Strongly agree

14 . People eat Maggie noodles regularly?

o Agree
o Strongly agree
o Neutral
o Disagree
o Strongly disagree

15 . People knew about Maggie noodles ?

o Agree
o Strongly agree
o Neutral
o Disagree

59
 o Strongly disagree

16 . The price of Maggie noodles are low ?

o Agree
o Strongly agree
o Disagree
o Strongly agree
o Neutral

17 . Maggie noodles change their noodles taste ?

o Agree
o Strongly agree
o Disagree
o Strongly agree
o Neutral

18 . Maggie is always available in nearest market ?

o Agree
o Strongly agree
o Disagree
o Neutral
o Strongly disagree

19 . Maggie noodles provide various offers ?

o Agree
o Strongly agree
o Neutral
o Disagree
o Strongly disagree

60
20 . Maggie noodles for all class of people ?

o Agree
o Strongly agree
o Neutral
o Disagree
o Strongly disagree

21 . Maggie noodles provide attractive advertisement ?

o Agree
o Disagree
o Strongly agree
o Strongly disagree
o Neutral

61
 CHAPTER 4
Conclusion and Recommendation

62
 CONCLUSION

Maggi’s consistent quality, skill to identify the needs of society, and

continued innovations have allowed it to grab 90%of market share today, in
instant food products LOB. Maggi has continuously been broadening its
product line, which leaves the so-called “ONE PRODUCT
CONCENTRATED BRAND” behind. Maggi primarily sells instant noodles,
sauces, soups, bouillons, and other culinary aids. Distinct markets have
different preferences for different products.

RECOMMENDATION

I think the like’s of products like Maggi, Top ramen, Boomer, Bubble
gums, Pepsi, Coco cola, Gold flakes, Scissors, Wills, Kingfisher, Corn Flakes,
Dabur Honey, Colgate, Pepsodent etc.,. should not worry about the trust
worthiness as they have already developed and acquired a loyal market for
them. This loyal customer base shall go back to the parent brand as and
when it is available.

All they need are required clearances from the Food development and
testing authorities in India. The average/loyal Indian customer aren’t
really worried much about the trust worthiness cos if that was the case, I
am sure Pepsi , Coco cola would have left India long back. It is not so, So I
think maggi should just focus on coming back to the market.. Nothing else
matters !!

63
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