Business Studies

Project Draft on
Business Environment

Done By:
BHUMIK.D.SINGHVI
KRITHISH AACHA
XII-D

Index
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1. Meaning of business
environment
2. Features of business
environment
3. Importance of business
environment
4. Dimension of business
environment
5. Maggi ― Introduction
6. Maggi finds its way to
India
7. Journey of Maggi in India
8. Business factors affecting
Maggi

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Meaning of Business Environment:
The word ‘business environment’ indicates the aggregate total of all people,
organisations and other forces that are outside the power of industry but that may
affect its production. According to an anonymous writer- “Just like the universe,
withhold from it the subset that describes the system and the rest is environment”.
Therefore, the financial, cultural, governmental, technological and different forces
which work outside an enterprise are part of its environment. The individual
customers or facing enterprises as well as the management, customer groups,
opponents, media, courts and other establishments working outside an enterprise
comprise its environment.

Features of Business Environment:

(a) The Totality of External Forces
Business environment includes everything which is outside the organisation.
If we add all these forces, they will form a business environment.
Example: When Pepsi and Coca-Cola got permission to set up their business in
India, it was an opportunity for them and threat for local manufacturers like gold
spot, camp-cola etc.

(b)Specific and General Forces

Specific forces are those forces which directly affect the operational activities of
the business enterprise.

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Example: Suppliers, Customers, Investors, Competitors, Financers etc.
General forces are those forces which indirectly affect the functioning of business
enterprises.
Example: Economic, Social, Political, Legal and Technological conditions.

(c) Inter-relatedness
Different forces of business environment are interrelated to each other.
One component of the business environment affects the functioning of other
components.
Example: The increased life expectancy of people and awareness of health
consciousness has increased the demand for many health products like diet coke,
olive oil, and so many health products.

(d)Dynamic Nature
The business environment is dynamic in nature and keeps on changing in terms of :
a. Technological improvement,
b. Shifts in consumer preferences,
c. The entry of new competition in the market.
Example: Many established companies in FMCG (Fast Moving Consumer goods)
sector are focusing on producing the goods with natural ingredients with the entry
of ‘Patanjali Products’.

(e) Uncertainty
The changes in the business environment cannot be predicted accurately because of
future uncertainties.
It is very difficult to predict the changes in the economic and social environment.
Example: There has been a sharp decline in the prices of Android smartphones due
to the entry of many new companies.
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 (f) Complexity
All forces of the Business environment are interrelated and dynamic, which makes
it difficult to understand.
Complex nature of Business environment can be understood if we study it in parts.
Example: Increase in goods and service tax to 15 % would increase the revenue of
the government (economic), which would help the government to improve social
being of people (social) and reduce the personal disposable income of rich people
and thereby controlling inflation.
(g) Relativity
Business Environment differs from place to place, region to region and country to
country.
Example: In China, the electricity to the industry is provided at cheaper rates as
the consumption increases and hence, it leads to mass production whereas, in India,
it is otherwise, higher consumption of electricity leads to costly electricity which
results in lower production & higher cost of production.

Importance of Business Environment

Just like us, business operations do not survive in confinement. Every enterprise is
not an island to itself; it subsists, endures and develops within the circumstances of
the part and forces of its situation. While an individual enterprise is able to do
minute to change or manage these forces, it has no choice to reacting or modifying
according to them. Good knowledge of the environment by business managers
allows them not only to recognise and assess but also to respond to the forces
outside to their enterprises. The significance of the business environment and its
perception by managers can be understood if we contemplate the below-mentioned
following points:

Determines business opportunities:

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The environment provides numerous opportunities, and it is necessary to identify
the opportunities to improve the performance of a business.
Early identification gives an opportunity to an enterprise be the first to identify
opportunity instead of losing them to competitors.
Example: ‘Airtel’ identified the need for fast internet and took first-mover
advantage by providing 4G speed to its users followed by Vodafone and Idea.
Asian paints lost market share to Nerolac because it failed to match its technology.

Identifies threats:
The business environment helps in understanding the threats which are likely to
happen in the future.
Environmental awareness can help managers identify various threats on time and
serve as an early warning signal.
Example: Patanjali products have become a warning signal to the rest of the
FMCG
The sector to develop similar products. Similarly, if an Indian firm finds that a
foreign multinational is entering the Indian market with new substitutes; it needs to
prepare accordingly.
Chinese mobile phones have become a threat for Indian mobile phone
manufacturers.

It Helps in Tapping Useful Resources:

Business and industry avail the resources (inputs) from the environment and
convert them into usable products (outputs) and provide to society.
The environment provides various inputs (resources) the like finance, machines,
raw materials, power and water, labour, etc.

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The business enterprise provides outputs such as goods and services to the
customers, payment of taxes to the government, to investors and so on.
Example: With the demand for the latest technology, manufacturers will tap the
resources from the environment to manufacture LED TVs and Smart TVs rather
than collecting resources for colour or Black & White TVs.

It Helps in Coping with Rapid Changes:

The business environment is changing very rapidly, and the industry is getting
affected by changing market conditions.
Turbulent market environment, less brand loyalty, divisions of markets, changes in
fashions, more demanding customers, and global competition are some examples
of changing the business environment.
Example: Jack Ma started Alibaba as he could see the potential of interest in E-
Commerce.

It Helps in Assisting in Planning and Policy Formulation:

The business environment brings both threats and opportunities to a business.
Awareness of business environment helps in deciding future planning or decision
making.
Example: Multiple entries of Chinese phones like VIVO, Gionee, OPPO, etc.
Have posed a threat to local players like Micromax, Karbonn, Lava etc. To think
afresh how to deal with the situation.

It Helps in Improving Performance:

Environmental studies reveal that the success of any enterprise is closely bound
with the changes in the environment.
The enterprises which monitor and adopt suitable business practices not only
improve their performance but become leaders in the industry also.

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Example: Apple has been successful in maintaining its market share due to its
proper understanding of the environment and making suitable innovations in its
products.

Dimensions of business environment

Dimensions of or the agents forming the business environment involve economic,
social, legal, technological and political circumstances which are contemplated
properly for decision-making and enhancing the achievement of the trading
concern. In distinction to the precise environment, these aspects manifest the
prevailing environment, which often affects many companies at the same time.
However, the administration of every business can profit from being informed of
these dimensions rather than being unbiased in them. A concise argument of the
multiple factors comprising the global environment of the company is provided
below:

Economic Environment:
The economic environment consists of factors that affect consumer
purchasing power and spending patterns. Economic factors include business
cycles, inflation, unemployment, interest rates, and income. Changes in
major economic variables have a significant impact on the marketplace. For
example, income affects consumer spending which affects sales for
organizations. According to Engel’s Laws, as income rises, the percentage of
income spent on food decreases, while the percentage spent on housing
remains constant.

You can divide the economic environment into the microeconomic

environment, which affects business decision making – such as individual
actions of firms and consumers – and the macroeconomic environment,
which affects an entire economy and all of its participants.

Macroeconomic influences are broad economic factors that either directly or

indirectly affect the entire economy and all of its participants, including your
business. These factors include such things as:

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 Interest rates
Taxes
Inflation
Currency exchange rates
Consumer discretionary income
Savings rates
Consumer confidence levels
Unemployment rate
Recession
Depression

Microeconomic factors influence how your business will make decisions.

Unlike macroeconomic factors, these factors are far less broad in scope and
do not necessarily affect the entire economy as a whole. Microeconomic
factors influencing a business include:

Market size
Demand
Supply
Competitors
Suppliers
Distribution chain, such as retail stores

Social Environment:

The Social Environment includes social forces like traditions, values, social
trends, education level, living standards, etc. All these forces significantly
impact a business.

Tradition: It refers to social practices that have been around for decades,
such as Easter, Christmas, Diwali, Eid, etc.
Impact: Increased demand during festive seasons provides opportunities for
various businesses.

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 Values: It refers to the prevailing moral principles in society, such as
freedom of choice in the market, social justice, equal opportunities, and non-
discriminatory practices.
Impact: Organizations that uphold these values maintain a good reputation in
society and find it easier to sell their products.

Social Trends: It refers to a general shift or development in society, such as

the rising health and fitness trend among city dwellers.
Impact: The health and fitness trend has created a demand for gyms, organic
food, etc.

Technological environment:

Technological environment of business has changed the way in which

businesses function. Advancements in information technology have almost
taken over every department of the organization. Now, information is stored
in data servers and cloud technology as against the old way of storing data in
registers and files.

Furthermore, development of technology has also introduced digital

marketing strategies through which companies are able to sell their products
and services. Even the research and development R&D divisions in
companies have changed its way of functioning and more advanced
techniques in the development of products and services have been
introduced only through technological advancements.

Technological environment has both positive and negative impact on

business:

Positive impact

Technology helps in developing marketing strategies. Technology has

brought in a transformation through which companies collect, record,
retrieve and utilize data and which also helps them in coming up with
ground-breaking business strategies.

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 Through available data, companies are able to monitor and evaluate
customer trends and their demands for a particular product. Thanks to the
development of information technology, businesses can understand
consumer behaviour and conduct a macro environment analysis and develop
marketing strategies accordingly.

Negative impact

Business Relationships: Internet technology like Skype and other chat

rooms have made it possible for businesses hold meetings without having all
the parties be physically present at the same place. This type of meeting is
less personal as compared to a face-to-face meeting. In this way, the
personal aspect of business relationships tends to reduce. Lack of physical
proximity has reduced brainstorming and another form of communication
which involves personal touch.

Brick and Mortar: Advancement in e-commerce technology holds a

negative impact on brick-and-mortar stores. Small-scale businesses are
finding it very difficult to compete with both online and larger businesses in
the industry that are operating both in person and on the internet. This
advancement in the technological environment of business eventually forces
small organizations to go out of operation.

Political environment:

Changes in political situation also affect business organizations. Political

stability builds confidence among business community while political
instability and bad law & order situation may bring uncertainty in business
activities. Ideology of the political party, attitude of government towards
business, type of government-single party or coalition government affects
the business.
Example: Bangalore and Hyderabad have become the most popular locations
for IT due to supportive political climate.
The political environment, as part of the business environment, encompasses
various factors related to the government, policies, and political stability that
can impact businesses. Some of them are:
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 Government Policies: Understanding government policies and regulations
that affect businesses, such as taxation, trade policies, and industry-specific
regulations.

Political Stability: Assessing the stability of the government and its impact
on investment and business operations. Political instability can create
uncertainties for businesses.

Legal Framework: Examining the legal system and the rule of law in a
country, as it affects contract enforcement, property rights, and the overall
business environment.

Political Parties and Ideologies: Studying the different political parties and
their ideologies can help businesses anticipate potential policy changes
based on election outcomes.

International Relations: Analysing how a country’s political relationships

with other nations can influence trade, foreign investments, and international
business operations.

Government’s Role in the Economy: Understanding the extent of

government intervention in the economy, including its role in areas like
public infrastructure, subsidies, and social welfare programs.

These factors collectively shape the political environment in which

businesses operate and can have a significant impact on their strategies and
decision-making processes.

Legal environment:

It constitutes the laws and legislations passed by the Government,

administrative orders, court judgments, decisions of various commissions
and agencies. Businessmen have to act according to various legislations and
their knowledge Very necessary.

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 Example: Advertisement of Alcoholic products is prohibited and it is
compulsory to give statutory warning on advertisement of cigarettes.

Business Laws: This includes an overview of business-related laws, such as

contract law, company law, and consumer protection laws.

Regulatory Authorities: Discussing regulatory bodies and agencies

responsible for overseeing and enforcing business laws and regulations, such
as the Securities and Exchange Board of India (SEBI) or the Competition
Commission of India (CCI).

Business Ethics: Understanding the ethical considerations and moral

responsibilities of businesses in compliance with the legal framework.

International Business: Exploring legal aspects of international trade,

including international trade laws, agreements, and dispute resolution
mechanisms.

Emerging Legal Issues: Keeping up to date with contemporary legal issues

that impact businesses, like data protection laws and environmental
regulations.

The legal environment is crucial for businesses to ensure they operate within
the confines of the law and avoid legal issues.

MAGGI

Introduction

In the scenic town of Kemptthal, Switzerland, in the late 19th century. It was here
that Julius Maggi, a young and enterprising entrepreneur, set out to revolutionize
the way people cooked. Recognizing the growing need for quick and nutritious
meals, Julius Maggi developed a formula for a concentrated, flavour-packed soup

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mix that could be prepared in minutes. This innovative product laid the foundation
for what would later become the Maggi brand.

Maggi Finds its Way to India

Fast forward to the 20th century when Maggi started its global expansion. In 1982,
Nestlé, the renowned Swiss multinational, introduced Maggi noodles to the Indian
market. It was a bold move to introduce a product that was entirely new to the
Indian palate and cooking habits, which were deeply rooted in traditional recipes
and slow-cooked meals. However, little did they know that this seemingly
insignificant packet of noodles would soon become an intrinsic part of the Indian
culinary fabric.
Maggi noodles faced an uphill battle in the early days. Indians were skeptical about
this foreign import that promised a quick and tasty meal. To make matters worse,
the initial marketing campaigns failed to resonate with the masses. However,
Nestlé persisted and adopted a new strategy that would change the game forever.
Recognizing the power of popular culture, Nestlé launched a series of television
advertisements that showcased Maggi noodles as the ultimate snack for busy
individuals. These commercials featured Bollywood stars, who effortlessly
prepared Maggi noodles and enjoyed them with a sense of youthful exuberance.
This ingenious marketing campaign struck a chord with the Indian youth, who
quickly embraced Maggi as their go-to comfort food.

Journey of Maggi in India

Every journey has its ups and downs, and Maggi’s success story was no exception.
In 2015, the brand faced its biggest challenge when the Food Safety and Standards
Authority of India (FSSAI) reported that some Maggi noodle samples contained
excessive levels of lead and MSG. This revelation sparked a nationwide
controversy, leading to a temporary ban on Maggi noodles.

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Nestlé quickly went into damage control mode, working tirelessly to restore the
trust of Indian consumers. They conducted rigorous quality tests, revamped their
manufacturing processes, and collaborated closely with regulatory authorities.
Maggi noodles made a triumphant comeback to the market within months, with
stricter quality standards and a renewed commitment to food safety.
Today, Maggi is an integral part of Indian households, transcending generations
and socioeconomic boundaries. It has become a symbol of comfort, convenience,
and reliability. From hostel dorms to bustling households, Maggi noodles have
made their way into the hearts of millions, becoming a cultural phenomenon in
their own right.
The story of Maggi’s journey to India is a testament to the power of innovation,
perseverance, and adaptability. What started as an experiment with instant soup
mix in the Swiss mountains eventually transformed into an iconic brand that
revolutionized the way Indians cook and consume food. Maggi’s enduring success
in India is a true reflection of its ability to understand and adapt to the unique tastes
and preferences of a diverse nation. So, the next time you savour a hot bowl of
Maggi noodles, remember the remarkable journey it undertook to become an
inseparable part of the Indian culinary landscape.

Business Factors Affecting Maggi

Political Factors:
The political factors in the Maggi PESTLE Analysis can be explained as follows:
Maggi is one of the leading food & snack brand in the world. The trade
relationships of countries with each other are critical. The better the relations,
easier it would be for the firms to perform business across the world,
internationally. In 21st century everyone wants to go international. Nestle is an
already established brand across the world. USA is Nestlé’s major market for
Maggi.

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The trade war that is going on with China and USA effects the exports and imports
in both the countries due to increased rates of imports and exports. Since Maggi is
a brand which has its presence all over the world, the respective country’s political
stability is important in determining the supply chain efficiency. The Brexit also
effected Maggi and its sale in in UK. The import rates had gone up since the pound
lost its value in international market after Brexit. Overall political stability is
utmost necessary to run a smooth business.

Economic Factors:
Below are the economic factors in the PESTLE Analysis of Maggi:
Maggi is food brand which is present all over the world and hence is dependent on
several economic factors. It is a very known phenomenon that political tensions
between countries raises economic tensions as well.
The Brexit for example led to the downfall of the pound value in the international
market. This increased the rates of imports of raw materials. The whole supply
chain of brand like Maggi gets disrupted and thus the production goes for a toss.
Events like global recession cuts down the income of people. With less income,
people lose on their money spending capacity. Thus, the overall sale reduces.
Customer is becoming cost conscious and thus economic stability in the
international market is important.

Social factors:
Following are the social factors impacting Maggi PESTLE Analysis:

The taste preferences of people vary from place to place. Thus, Nestlé’s Maggi has
to be marketed considering the specific taste demands in different regions. The
marketing efforts should also be aligned. Customer these days are opting for
healthier food items. They look for more nutrients in the food that they consume,
even if it’s a snacks item. With hectic work life people these days find it tough to
manage home and office. On returning back to home, they need items like Maggi
that get prepared quickly, consuming very little time. Social campaigns should also
consider the socioeconomic factors.

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Technological Factors:
The technological factors in the PESTLE Analysis of Maggi are mentioned below:
Technology advancements are penetrating in every department of the firm. In
manufacturing technology is used to maintain manufacturing precision, in supply
chain it is used to achieve target efficiency, to control the quality of product, in
sales and marketing to reach out to maximum number of people. Usage of internet
has grown immensely in this decade. Online shopping is a boon for products like
Maggi.
Social media is a major technology development for nestle and its customers to
connect with itself.

Legal Factors:
The legal environment can significantly impact companies like Maggi in several
ways. Regulations related to food safety, labelling, and advertising directly affect
the production, marketing, and distribution of Maggi products. For instance, if new
food safety laws are introduced, Maggi might need to adjust its manufacturing
processes to comply, potentially affecting its cost structure and product availability.
Additionally, legal issues related to patents and trademarks can impact Maggi’s
ability to protect its recipes and branding, which are essential for maintaining a
competitive edge. Employment laws and regulations can affect how Maggi
manages its workforce.
Moreover, consumer protection laws can influence how Maggi markets its products
and deals with customer complaints. Any legal disputes or product recalls can also
have significant financial and reputational implications for the company.
In summary, the legal environment plays a crucial role in shaping Maggi’s business
operations, strategy, and overall success.

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18
MARKET SEGMENTATION ,TARGETING AND
POSTIONING OF MAGGI
The STP process is an important concept in marketing. The STP stands for
segmentation, targeting, and positioning.

The STP process demonstrates the links between an overall market and how a
company chooses to compete in that market. It is sometimes referred to as a
process with segmentation being conducted first, then the selection of one or more
target markets, and then finally the implementation of positioning.
The goal of the STP process is to guide the organization in the development and
implementation of appropriate marketing.
STP stands for:
 Step 1: Segment your market.
 Step 2: Target your best customers.
 Step 3: Position your offering.
1. SEGMENTATION:

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Market Segmentation and is defined as the process of splitting a market into
smaller groups with similar product needs or identifiable characteristics to select
appropriate target markets.
There are many different ways to segment. For example, we can use the following
approaches:
 DEMOGRAPHIC
Females who combine outside work with household work are likely to experience
greater time constraints. The age and gender aspects of demographics were taken
into account by Maggi by focusing on young working people who didn’t have
much time to prepare a meal and that is how Maggi two minute noodle was a
success.
 GEOGRAPHIC
South and east parts of India where the majority of the population consume rice.
Maggi segmented the market accordingly and launched its rice noodles to attract
and fulfill the needs of the customers. Variants like Cooking Aids like Masala-ae-
magic and Shahi masala, Pasta, and Sauces like Hot & Sweet Tomato Chilli Sauce
were introduced to attract customers from different regions.
 PSYCHOLOGICAL AND BEHAVIORS
A customer may report eating healthily but the grocery scanner data can be
compiled to show the behavior of the customer. Since the customers from the
urban and the rural region differ in their eating habit and their grocery expenses
which is why it is available in a 5 INR small pack also to attract the rural
customers along with the urban customers and to have a positive consumer
behavior launched Maggi Atta whole wheat flavor to make it more nutritious.
2. TARGETING
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Market Targeting refers to an organization’s proactive selection of a suitable
market segment to heavily focus on the firm’s marketing offers and activities
towards this group of related consumers.

MAGGI main target is :-

 kids
 youth
 office goers
 working individuals
Today MAGGI Noodles with its attractive variety of new flavors successfully
targets kids, working women, and the elderly all at the same time. But Nestle at the
initial stage was targeting the house lady. Very soon it realized that its target
segment is not them. It evaluated and understood that children should be its
primary focus. So they changed their mission to ‘To become the no. 1 preferred
snack for kids in the country and came up with two minutes noodles that targeted
children aged 7 to 12.
Nestle also targeted the house lady by introducing healthy noodles. These can be
consumed as the complete food which gives the calorie and meets all necessary
health requirements. For these variants, they introduced the new positioning
“MAGGI is the best, tasty and healthy noodles (for children), which cannot be
compared.”
3. POSITIONING
Market positioning is the target market’s perception of the product’s key benefits
and features relative to the offerings of competitive products.

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 MARKETING MIX OF MAGGI

To position itself as the topmost brand Maggi used the above principles:
1. Product Differentiation
Maggi claims that its item is healthy and can be made in 2 minutes. This is the
claim that only Maggi makes and this has led to their “differentiation” from other
brands in the view of the general population.
2. Positioning statement
Maggi targeted a new category called Instant Noodles in consumers’ minds. Their
positioning was a Convenience Product and an alternative for Meals and Dinner.
The above positioning gave Maggi a first-mover advantage in India.
3. Service Differentiation
For maintaining its picture in the business sector, Maggi always contributes time
and cash to think about the need, prerequisites, and desires of its customers. It is
therefore on the top among its rivals like Sunfeast Yippee, Patanjali Noodles,
Ching’s noodles, Knorr’s Soupy Noodles, and so on. Maggi Product Strategy:
Maggi is leading food brand under the umbrella of Nestle. Maggi has a wide
variety of products and has a different range for each country. Its products are
majorly categorized into Maggi instant noodles, Maggi soups, sauces, seasonings
and bouillons.
The instant noodles category has a wide variety and very popular globally. The
major Maggi products in this category are 2-minute Noodles, Chicken noodles,
Vegetable Multigrain noodles, Cuppa Mania, Hot Heads noodles, Oats noodles,
Atta noodles. This is the backbone of the product strategy in the marketing mix of
Maggi. The Maggi soups category has a wide variety of dehydrated soup mixes
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and products offered vary with countries it is present in. Maggi is present all across
the world where it operates. Seasonings are various mixes of spices and also act as
cooking aid. In India it is available with the name of Magic Masala and Bhuna
Masala. Maggi sauces are also a major category and flavors vary country wise. Soy
sauce is a popular seasoning product all over the world. Apart from this in India a
lot of varieties are available such as Maggi Rich Tomato, Maggi Hot & Sweet and
Tamarind. During the lockdown, the sales of ready to cook food products rose
sharply. This was largely due to convenience especially for people with little
cooking skills.

Maggi Price/Pricing Strategy:

Below is the pricing strategy in Maggi marketing mix strategy:
Maggi uses a cost based pricing strategy to tap in to various markets in the world.
The competitive prices are compensated with high volumes of the products.
This shows that competition and cost are the two major factors in the marketing
mix pricing strategy of Maggi. Because of rising prices in various countries Maggi
has smartly started reducing the quantity to keep the prices unchanged. Nestle
strives to capture maximum market share with low prices and high quality
standards. As Maggi is trying to tap into all segments of income category it keeps

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differential prices in depending locations and across countries. Also its offerings
are available in wide variety of packages so that people can buy according to their
needs. In recent times Maggi has started coming up with new products like the cup
range and Hot Heads noodles which it targets for the higher income level segments
and hence are priced at higher range.
Maggi Place & Distribution Strategy:
Following is the distribution strategy in the Maggi marketing mix:
Maggi products are widely available due to the strong presence of Nestle. The
distribution strategy followed by Nestlé is Producers to Distributors to Wholesalers
to Retailers to Consumers. This is because it is consumed in a lot of volumes and
generally in small quantities. Due to its so deep reach even into rural areas and
small towns, it has gained it the top position. Maggi products are directly taken
from the factories which are independently managed to Carry and Forward
Agencies who then store in there large warehouses and pass them onto the
wholesalers according to their demanded quantities. These quantities are then
distributed among the retailers or to the end customer through hypermarkets, other
small businesses and even its own kiosks to corporates. The retailers can be
convenience stores or local supermarkets.
This gives an overview on Maggi’s distribution strategy in its marketing mix.

Maggi Promotion & Advertising Strategy:

The promotional and advertising strategy in the Maggi marketing mix is as
follows:
Maggi has used advertising as its main promotional strategy to create awareness
and for brand recall. Initially it focused on kids and working women who have
very less time to prepare food. The advertisements mainly flashed on kids channels
with effective tag lines of “Bas 2-minute” and the jingle “Maggi Maggi Maggi”.
On its 25th anniversary it launched the voice over campaign to create a nostalgic
feeling among the customers about their journey with Maggi. It has also used the
“Miss you Maggi” ad campaign to regain back the lost customers after the Maggi
ban in India. As sales promotional strategies over the years it has attached various
free goodies with its products such as free samples, fun books and toys. Maggi has
also offered discounts, Scratch n Win schemes. It also used many celebrities for

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brand endorsements. The users are also engaged with social media platforms like
Facebook, Instagram etc. This completes the marketing mix of Maggi.

SWOT ANALYSIS OF MAGGI

Strengths of Maggi
The Unique Advantage
Maggi has been a trendsetter in first noodle cooking. This makes it very beneficial
for gaining higher profits. Irrespective of various national and local brands Maggi
stays at the top.
With its top reputation and capacity to invest in individuality and novelty, the
company has maintained a great market share.
Strong Brand Pull
The company’s smart branding as well as clever marketing has made a strong
presence in the market. With its reputation, the company gained approximately 170
billion rupees profit a few years before.
The brand awareness of Maggi shows how much customers believe in the brand
and are loyal.

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Cutting-edge Ad Strategies
‘Fast to cook, good to eat’ was one of the catchphrases of Maggi. Easy to cook and
its amazing appeal has been the best.
Great Demand
In Singapore, the instant noodles market especially for Maggi is high. With his
great demand for easier-to-prepare meals, the brand witnesses a strong base of
loyal customers. Maggi is a leading noodle brand, taking over over 50% of India’s
noodles market.
Research and development
Nestle company offers Maggi great R&D capabilities and unique resources that
allow it to adapt to customer tastes as well as market strategies. Moreover, the
R&D of the company also involves engaging customers.
It looks for constant feedback from the customers with its different channels and
campaigns. It also has a big customer relationship management that offers
durability through continuous learning and adaptation to customer needs.
Weaknesses of Maggi
Here are the weaknesses of Maggi –
Different Flavor
Maggi has a very specific flavor and its taste is different from the other noodle
flavors so there are some chances that people may not like it. The company’s
innovative flavor palette may not attract customers having a liking for authentic
dishes.
Brand spoilage
India banned Maggi in 2015 due to its lead proportionate. However, the brand then
recovered but the incident tarnished the company’s reputation and customers
started questioning the safety and quality of the brand.
Core product dependency
The company has been the strongest brand in eastern noodles irrespective of its
diversification. Over-dependence on a particular product category may affect the
company in the case of unexpected market changes or customer shifts.

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Environmental issues
Maggi is criticized for nonbiodegradable packaging. Today markets are becoming
more eco-friendly and hence these kinds of clauses can discourage eco-friendly
buyers and may also expose Maggi to regulatory issues.
Opportunities for Maggie
Opportunities are one of the essential elements that will help the company to
augment in the future.
Expansion in the developing markets
The middle-class persona is very ideal for emerging markets. Here the company
can introduce its products to a bigger set of audience that is looking for tasty food
options. This food product is very popular in different countries worldwide as per
the increased lifestyle changes.
Healthy product trends
The trend of wellness and health is leading customers to choose nutrition-perfect
foods with low sodium and whole grains. However, Maggi can easily leverage this
trend by offering conventional products as per the demand. Offering whole-grain
noodles with reduced vitamins or sodium can also boost the brand appeal.
Sustainable Packaging
Environmental awareness has made customers look for sustainable products.
Maggi fulfills eco-friendly features by meeting customer expectations. The
company has eco-friendly packaging that makes it different and increases market
share part from its competitors.
Threats to Maggie
Below mentioned are the threats to the company –
Intense competition
The food market is always ready with new entry food items that return the
company supremacy. Nissan noodles is one of the strongest competitors of Maggi
and is gaining market share swiftly. The inventive marketing of Nissan company
has been appealing to a lot of people who may have seen the growth and turnover
of Maggi.

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Changing health trends
Maggi noodles are a processed food product that has many global movement
challenges. People who have been thinking of following a clean diet avoid
consuming Maggi. These kinds of people also favor organic as well as non-
processed food for better health.
Regulatory issues
Maggi has a lot to suffer from strict government laws and regulations across the
globe. However, such kinds of rules may hamper the ingredients as well as product
modification requests. The regulatory concerns also have complaint expenses of
the company and enhance the brand market strategy.
Dependency on retail channels
With the growing E-Commerce sector, Maggi noodles has a high dependency on
the retail channels which may prove a risk factor for the company. It should adapt
to customer preferences to buy Maggi online and also to maintain a better market
share.
Alternative products
The food sector is constantly changing and various alternatives including fast-
cooking pasta instant bowls may threaten the company’s conventional product
lines. Hence, Maggi should constantly innovate.
Vulnerable currency exchange modes
Maggi has been vulnerable across the globe with respect to currency exchange
operations. The consistent fluctuations in the currency music the corporate margins
to a greater extent especially in those regions where. This may make it very
difficult for the company to plan financially.
Top Competitors of Maggi
Here are the top competitors of Maggie –
1. Yippee Noodles: ITC’s Yippee Noodles is a strong competitor of Maggie in
the instant noodles sector. It has a delicious masala flavor and has a great
market share in India.
2. Top Ramen: These instant noodles give a variety of flavors and are widely
available in urban as well as rural areas.

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 3. Knorr: This Unilever product competes with Maggi instant food categories
and offers a wide range of noodles, ready-to-eat food, etc.
4. Ching’s Secret: This brand offers great Chinese food products, soups,
noodles, etc, and is a direct competitor of Maggi.
5. Sunfeast Pasta Treat: It is also a great competitor to Maggi in the instant
noodles market and offers a wide range of styles and pasta flavors.

6. Conclusion
Maggi is an international brand of instant noodles as well as other
products. It’s top-quality innovation and strategic printing help
lead the market at top speed. With respect to its huge success,
the company presents severe competition, eco-friendly issues as
well as continuously changing health trends.
The company also includes opportunities including sustainability
developing markets and enhancing its internet presence system.
However, adapting to customer changes quickly and following
their choices ensures the company’s growth in the food industry.

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