PROJECT REPORT

WINTER REPORT
“ANALYSIS OF MARKETING STRATEGIES OF
NESTLE MAGGI

SUBMITTED TO THE DEPARTMENT OF MANAGEMENT STUDIES, KAUMAUN

UNIVERSITY CAMPUS BHIMTAL
In partial fulfillment of the Requirement for the award of Degree of
Master of business Administration Program.(MBA Integrated Xth
semester )

SUPERVISED BY: SUBMITTED BY:

MR.AMIT JOSHI HIMANI TEWARI

MBA INTREGATED

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 DECLARATION

This project has been undertaken for the partial fulfillment of the requirement for
award masters degree in Management from Kumaun University, Nainital.

The project was executed during the winter break after the ninth semester.

Further, I declare that this project is my original work and the analysis and the
findings are for academic purpose only. This project has not been presented in any
seminar or submitted elsewhere for the award of any degree or diploma.

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 CONTENTS

CHAPTER 1 - Introduction

1.1 Introduction
1.2 Company profile
1.3 Review of literature

CHAPTER 2- Objective & research methodology

1.4 Objectives of the study
1.5 Research methodology
1.6 Limitation

CHAPTER 3- Data Analysis & interpretation

1.7 STP Analysis

1.8 SWOT Analysis

CHAPTER 4-Conclusion & recommendation

Annexure

 Questionnaire
 Bibliography

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INTRODUCTION TO THE PROJECT

The Project entitled “ANALYSIS OF MARKETING AND PROMOTIONAL

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

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 COMPANY PROFILE

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ESSTTLLE
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Nestlé S.A. is among the largest consumer packaged goods

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

 HISTORY OF NESTLE:

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

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

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

Henri Nestlé.

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

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

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

Nestlé's logo used until 1970s.

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

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

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

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

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

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In November 2006, Nestlé purchased the Medical Nutrition division of Novartis
Pharmaceutical for $2.5B, also acquiring in 2007 the milk flavoring product known as
Ovaltine. In April 2007 Nestlé bought baby food manufacturer Gerber for $5.5 billion.

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

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

PRODUCTS OF NESTLE:

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

EARNINGS OF NESTLE:

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

Sales by activity breakdown: 27% from drinks, 26% from dairy and food products,
18% from ready-prepared dishes and ready-cooked dishes, 12% from chocolate,
11% from pet products, 6% from pharmaceutical products and 2% from baby milks.

Sales by geographic area breakdown: 32% from Europe, 31% from Americas (26%
from US), 16% from Asia, 21% from rest of the world.

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JOINT VENTURES:

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

MAJOR COMPETITORS OF NESTLE MAGGI :-

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

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

A regional split of the data shows that Maggi's instant noodles' value market share
has fallen across the east, south, north and west zones for the same period.

Analysts say with new competition, Maggi's market share is certain to get impacted ,
but add that Nestle has the potential to expand the Rs 1,300-crore instant noodles
category – which itself is growing at a rapid 15% annually. A detailed email sent to
Nestle on Thursday elicited no response.

Apart from HUL and GSK which have positioned their noodles as 'healthy' snacking
options targeting kids and mothers, others like Indo-Nissin's Top Ramen, Capital

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Foods' Ching's Secret and CG Foods's Wai-Wai , though around for long, are
stepping up marketing efforts to take advantage of category growth. Besides, private
brands like Big Bazaar's Tasty Treat and Aditya Birla Retail's Feasters are notching
up share.

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

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

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

On the other hand, HUL, which rolled out Knorr Soupy noodles in the South this
February, had to postpone the brand's national launch due to capacity constraints
because of heavy consumer offtake. An HUL spokesman said: "We are very pleased
with the performance of Knorr Soupy noodles."

Private brands are whetting appetites of consumers too. According to Devendra

Chawla, business head, private brands, Future group: "The category boundary is set
to be re-drawn. From a snack food targeted at children, instant noodles category has
evolved as a mainstay meal even for grown ups."

HISTORY OF MAGGI INDIA:

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

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

NIL offered a variety of culinary products such as instant noodles, soups, sauces and
ketchups, cooking aids (seasonings), etc., under the Maggi brand (Refer to Exhibit II
for Maggi's product portfolio as of mid-2006). Of these, instant noodles had been
NIL's main product category in the culinary segment since the launch of Maggi 2
Minute Noodles (Maggi noodles) in 1982. Over the years, Maggi noodles became a
popular snack food product in India.

During the 1990s, the sales of Maggi noodles declined, and this was attributed partly
to the growing popularity of Top Ramen , another instant noodles product. In order to
improve sales and attract more consumers, NIL changed the formulation of Maggi
noodles in 1997. However, this proved to be a mistake, as consumers did not like the
taste of the new noodles. In March 1999, NIL reintroduced the old formulation of the
noodles, after which the sales revived. Over the years, NIL also introduced several
other products like soups and cooking aids under the Maggi brand.

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

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

In July 2001, Maggi replaced Nescafe (NIL's coffee products brand) as the

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company's core brand. Nescafe had been NIL's core brand since 1998.

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

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

MAGGI – INDIA:

Nestle India Limited is the market leader in Indian Noodle Market with it’s Maggi
Brand of Noodles which was pioneer brand launched in 1983 in the packaged food
market of India. It took the challenge and established Maggi in Indian market
considered to be conservative and typical about food consumption. It appropriate
realization of target segment, effective positioning and effective promotion and sales
made Maggi to Noodles in India as Xerox it to photocopier. NIL had introduced
sauces, ketchups and soups under Maggi brand to reap benefit of brand popularity
and image and contribute to financial gains by 1990.Maggi also became successful
in sauces, ketchups and soups Market in India. Though NIL tried to extend to other
ready to eat products like pickles, cooking aids and paste, It was unsuccessful so
dumped those products. Maggi Brand of products sustained recession in 2000 and
2001 in India by introducing economy packets.

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To fulfill novelty needs of customers and revitalize Maggi Noodles Brand NIL made
different attempts by introducing new formulation to new taste but customers resisted
change and Maggi had to reintroduce Maggi Noodles in same taste. Maggi Noodle
had till 2005 five product line on noodles with four variant in Maggi 2 Minutes Noodle.
In 2006 in compliance with NIL target to be “health and Wellness Company” Maggi
repositioned it as health and taste food products. NIL has also introduced with taste
and product line in Sauces and Soup Market under Maggi to catch new segment,
revitalize brand, compete with other producers and fulfill expectation of customers.

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

In 2005 Maggi was the highest spender in the Promotion and Sales in the Indian
Market in the Noodles Category.

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

MAGGI TODAY:

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

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culinary products. Carlo Donati told a leading newspaper that he wants to sell two
and a half times of what he is selling today, in the next 10 years.

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

marketers let their guard down. Maggi noodles, which built itself on the taste-and-
convenience platform through the 80s and early 90s, started facing the heat from
Indo Nissin’s Top Ramen brand around 1995. The latter began pushing forward
aggressively on a combination of taste variants, smart audience segmentation and
Shahrukh Khan’s brand endorsement.

Nestle promptly re-jigged its offering with a new taste - which didn’t go down well
with the consumer. In 1999, Maggi was relaunched with its original taste, and
sustained efforts saw the brand reclaiming lost ground. Since then, the brand has
been innovating constantly to keep share. “Maggi adapted to local tastes and
withstood competition over the years and has continuously sensitised itself to the
evolving Indian consumer,” says Martial Rolland, chairman and managing director,
Nestle India.

MARKETING MIX

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PRODUCTS OF MAGGI:

NOODLES:

MAGGI 2 – MINUTE NOODLES:

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

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

MAGGI VEGETABLE ATTA NOODLES:

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

MAGGI CUPPA MANIA:

Each offering of MAGGI Noodles has been developed keeping in mind the Indian
palate and what you like. Since in today’s fast-paced busy life, multitasking is a
reality, you need something that fits with your rushed lifestyle – a product which is
tasty and healthy, is convenient to prepare and eat and also satiates your hunger
.MAGGI Cuppa Mania is a combination of all the above! In an easy to carry on-the-
go Cup format, MAGGI Cuppa Mania comes in two mouth watering variants –
Masala Yo ! And Chilly Chow Yo! Packed with real vegetables and the goodness of
Calcium, just add garam paani* to the Noodles and voila! A cupful of delicious
MAGGI Cuppa Mania is ready for you to carry on jaani!

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SOUPS:-

MAGGI HEALTHY SOUPS:

MAGGI was the pioneer of Instant Soups in India.

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

 Healthy Style
 Rich Tomato
 Mixed Vegetable
 Creamy Chicken
 Masala Noodles

Chinese Style

Hot & Sour Vegetable

Sweet Corn Vegetable

Sweet Corn Chicken

Oriental Thai Noodles

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Chef Style

Cream of Mushroom

Tangy Tomato Vegetable

Sweet n Sour Tomato Noodles

MAGGI SAUCES:

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

The quint essential Rich Tomato Ketchup and Rich Tomato Sauce.

The unique Hot & Sweet Tomato Chilli Sauce and Oriental Chilli Garlic sauce.

The Indian style Tomato Chatpat Sauce Lips macking tastes and vibrant packaging
make MAGGI Sauces true to its slogan - It's different!

MAGGI PICHKOO:

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

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‘’New MAGGI Pichkoo - It's different!"

PASTA:

MAGGI PAZZTA:

To further delight the consumer, MAGGI now launches another range of products for
tasty and healthy eating – NUTRI-LICIOUS PAZZTA. This quick cooking pasta can
be conveniently prepared in just 5 minutes, at any time of the day that you want a
tasty and healthy light meal. MAGGI NUTRI-LICIOUS PAZZTA is made from 100%
Suji, and is a source of Protein and Fibre. It has being launched in two delicious
flavours ‘Masala Penne’ and ‘Cheese Macaroni’

COOKING AIDS:

MAGGI MAGIC CUBES:

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

MAGGI BHUNA MASALA:

MAGGI is revolutionizing the Indian kitchen with its latest offering – MAGGI Bhuna
Masala. It is any mother’s ally for conveniently cooking great tasting, wholesome
food for the family everyday. Based on intensive research and in-depth
understanding of Indian food habits and cooking practices, MAGGI Bhuna Masala
allows the housewife to prepare a large variety of tasty dishes without the hassle of
chopping and frying. The dishes retain that ‘special touch’ of the housewife as she

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adds her own spices….. Standing strong on its promise of “Taste Bhi, Health Bhi”,
MAGGI Bhuna Masala comes with "no added preservatives", "contains only 1
tbsp* of oil" and "tastes just like homemade." Gives you a perfect dish in three
simple steps:

 Open the pack & pour contents in the pan

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

MAGGI Kitchen Secrets Bhuna Masala comes in two variants:-

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

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

MAGGI COCONUT MILK PRODUCT:

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

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

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

PLACE( DISTRIBUTION ):

 The distribution network is well spread.

 Easily available in all retail stores.
 Distribution channel – PRODUCER - DISTRIBUTOR - RETAILER –
CONSUMER

PROMOTION OF MAGGI:
 They promote their product very effectively through television.
 They have applied the strategy of brand extension.
 They also sponsor various cookery shows to promote alternate usage of
products.
 They also use strategy of free product samples to promote it.
 Celebrity endorsements. Eg. Javed Jafferi PROMOTION
 Less promoted as compared to maggi.
 No particular celebrity endorsement.

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MARKEING AND PROMOTIONAL STRATEGIES

PRODUCT LIFE CYCLE OF MAGGI:

 INTRODUCTION:

 The Product launched keeping in mind the working women and

children’s.
 It was the pioneer in instant noodle market.
 Distribution Stage PRODUCER – DISTRIBUTORS – RETAILERS –
CONSUMERS.
 PRICING: The initial pricing strategy was low pricing strategy to make
product affordable.
 PROMOTION

- Promoted with tag line “BAS 2 MINUTE.”

- Promotion done by giving gift on empty packs.

- Promotion in school.

 GROWTH:

 Increased No. of sales.

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

 MATURITY:

 Declining sales growth.

 Extending product line.
 Large promotional offers.
 PRODUCT: MAGGI introduced wide variety of products like Dal atta
noodles, chicken maggi, and maggi cuppa mania.
 PRICE: Maggi still comes in very affordable prices starting from Rs. 5,
they reduced the quantity instead of increasing price.
 DISTRIBUTION: Distribution becomes more intensive. Various
intensive programs for encouraging products over other competitors.

 DECLINE:
 Sales saw a decline in 1990’s – Formulation changed from fried base
to air dried base.
 New product launched but failed- Dal atta noodles sambar flavor
 Tough competition from Top Ramen.

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  Failure of other products like Soups, Cooking aids etc.

STRATEGIES ADOPTED BY NESTLE:

 Nestle manages to create new product categories under the

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

 Maggi introduced the magi sauce category and pizza variant. It is

always easier to promote a new product under the name of the
established brand as the expenditure and recognition time is less.

 Nestle also used the cultural base marketing in India as knowing

the fact that Indian people like Rice, they introduced Maggi Rice
Noodles Mania.

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

 Maggi also successfully able to position its noodles in the minds of

the consumers as the fast food item.

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

STRATEGIES ADOPTED BY NESTLE MAGGI:

 Strong Customer Relations: The campaign designed by Nestlé for

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

 Good Packaging and Strong Dealer Vendor Relations:

Convenience was the unique selling proposition of Maggi when it was

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

 Continuous process innovation:-Instant noodles were an entirely new

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

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

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

product for any socio-economic category of consumers,” says Hedge

That was also the time when Nestlé was repositioning itself worldwide as a
health and wellness company. At the grassroots level, Maggi started
associating with quiz contests and other such events connected to mental and
physical wellbeing.
This positioning gave Nestlé the platform to launch more products under the
Maggi brand. It already had Maggi soups, sauces and coconut milk in the
market, but given the strong equity of the brand, Nestlé could now extend it to
newer categories. Thus, it recently came out with fried masala paste.
In 2008, two brand extensions — Maggi Bhuna Masala and Maggi Cuppa Mania
Instant Noodles .

25
 Price Incentives: The company is taking no chances and is extending its
distribution reach to smaller towns and cities. Maggi happens to be Nestlé’s
most widely distributed brand in the country. Through independent channels,
it reaches those villages where the company has no presence, according to
Hegde. This is also the time that Maggi’s value-for-money pack priced at Rs 5
is expected to come handy. (The regular pack comes for Rs 10.)

 Capturing New Customer Base : Maggi realised that one of the

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

 Maggi turns 25; Nestle comes up with new campaign

Nestle India is out with a new marketing drive to mark the 25th anniversary
this year of its instant Noodles brand, Maggi Called Me & Meri Maggi, the
campaign is celebrating the consumer’s bond with Maggi. The company is
doing“360 degree activation” across television, print and the internet, beside
on-ground activities. Nestle has also launched an interactive website for the
consumers,www. meandmeri.in
The packaging has been tweaked to accommodate the pictures of consumers
whose entries the Company chooses. “If a consumer has a story to tell about
Maggi will put him or her on the Packaging, TV or print,”

MARKET PENETRATION STRATEGY:

Maggi started with promotional campaigns in the school to see the reaction of
children after eating Maggi.

26
  Started their advertising straight focusing on kids.
 Introduced new products like atta noodles dal atta noodles cuppa
mania.
 Products are made available in different packages like 50,100,200,400
Gms.
 Keep on conducting market research to understand changes in market.

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

 Sales saw decline in 1990: The Company saw a decline in the sales in
1990. When the company tried to find out what the reason was, they
came to know that there was some thing wrong with the formula that
spoiled the taste. So the formula was changed from fried base to oiled
dried base.
 Competition increased in noodle segment: When Maggi was enjoying
being the only noodle offering by any company Top ramen entered the
market as a competition. This was a big challenge for Maggi. Though Top
Ramen couldn’t do well in India.
 New product launched in market but failed- Nestle decided to expand its
offerings by offering Dal atta noodles & Sāmbhar 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.

27
 LITERATURE REVIEW

The research conducted as a part of our study would include primary as well as
secondary research .primary research would include a survey that would be
conducted in selected localities of Bhimtal and nearby areas where the response of
consumers would be recorded through a designed questionnaire .
Secondary research would include various aspects of brand management through
internet, journal, company reports, expert views etc.

Marketing strategy marketing strategy is a long term course of action designed toth e
truth is that , when takes its word , this brand equity awareness has actually
revolutionized operational marketing.

These were gathered from books and internet material. The literature was reviewed
looking for reference to health promotion at the primary, secondary, and tertiary
levels.

The advert made false claim that the noodles would ‘’help to build strong muscles,
would ‘’ have to build strong muscles ,bone, and hair’’. Paswan said with a view to
ensure MSP payment to more number of paddy farmers, the millers ,the season ,
millers levy on rice has been brought down to 25% in the kharif marketing season,
and that government has decided to abolish it from October this year.

Maggi sauces made from finest ingredients

28
OBJECTIVES & RESEARCH METHODOLOGY

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

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

This project titled as mentioned involves the study of Marketing &

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

Sources of Data collection

 Primary source

The primary data used in this report include the questionnaire in

which the consumer/customer data is collected regarding their views
towards nestle maggi.

 Secondary source: This will include data collection from various

websites and books. It also includes data from company and other
referral sites and sources.

 OBJECTIVES OF THE PROJECT:

 To Understand the Marketing and Promotional Strategies adopted by

Nestle Maggi.
 To understand the brand performance of Maggi product.

29
 To understand Brand equity of maggi like brand awareness, brand
image, brand recall.
 Brand extension of Maggi in terms of product diversity.
 To understand the brand performance of maggi products

30
 LIMITATIONS

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

(1) Respondent’s unavailability.

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

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

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

(5) There was a shortage of time and resources for the functioning the operation.

(6) The data in this study is maximum taken from the primary sources .so, these data
is not fully exact.

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

31
 ANALYSIS & INTERPRETATION

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

Noodle 35
Fast food 10
Snacks 5
None of these 0

40

35

30

25

20

15

10

0
noodles fast food snacks none of these

Interpretation

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

32
Q 3. What is the brand that comes to your mind when we say the word
noodles?

Maggi 38
yippie 10
Topramen noodles 2
Anil noodles 0

0
2

10

48

Interpretation

Out of 50 approx 38 % of people said when they talk about noodle maggie comes
first in their mind & 10% said yippie noodle comes in their mind & other said
topramen.

33
Q 4. Rank the following Maggi products w.r.t frequency of purchase with being
the highest rank

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

Interpretation

No of customer given rank 1 to the noodles in purchase of maggi product, rank 2 to

the ketchup, rank 3 to the cubes, rank 4 to the soup & rank 5 to pickles in purchase
of maggi product.

34
Q 5. With what product would you associate the brand Maggi?

Ketchup 12%
Noodles 75%
Soup 10%
Masala 3%

3%

10% 12%

ketchup
noodle
soup
masala

75%

Interpretation

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

35
Q 6. On a scale of 1 to 5 rate Maggi on the following parameters

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

TASTE

4 5

Taste
Hygiene
5
4 Variety
Availability
3 Packaging

Interpretation

36
From the scale 1 to 5 the consumers gave 5(highest rate) to the taste & avalability,
4 rate to the hygiene/purity & packaging & 3(lower rate) to the variety & flavour. So
the company need to introduce maggi in different variety & flavour.

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

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

10 7

chocolate
15 potato chips
fruit juice
20 3 processed food
other

Interpretation

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

37
Q 8. How do you rate Maggi brand in terms of following parameters.

Expertise 4
Trustworthiness 5
Liability 3
None of these 1

4
4.5

3
5

Interpretation

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

38
Q 9. How do you perceive Maggi products?

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

30

25

20

15

10

0
good to health ready to eat junk food tasty/fun eating

Interpretation

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

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

(Repositioning Awareness)

39
Maggi masala 25
Maggi vegetable atta noodle 10
Maggi dal atta noodle 5
Maggi rice noodle mania 8
others 2

30

25

20

15

10

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

Interpretation

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

vegetable atta noodle, 8 consume maggi rice noodle mania, 5 consumer consume
dal atta noodle& remaninig consume other. So the marketing & sale of maggi masala
noodle is more as compared to other maggi noodle.

40
Q 11. Do you perceive maggi noodles as a healthy product?

Yes 35
No 15

15

yes
35 no

Interpretation

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

41
STP ANALYSIS:

 SEGMENTATION:
Market Segmentation divides the heterogeneous market into homogenous
groups of customers who share a similar set of needs/wants and could be
satisfied by specific products. Maggi Brand have segmented the market on
the basis of lifestyle and habits of URBAN FAMILIES.

 TARGET:
Market Targeting refers to evaluating and deciding from amongst the
various alternatives, which segment can be satisfied best by the company.
The Maggi Brand have mainly targeted the Kids, Youth, Office Goers &
Working Woman which falls into the category of “convenience –savvy time
misers” who would like to get something instant and be over with it quickly.

 POSITIONING:
Market Positioning is the act of designing the company’s offerings and image
to occupy a distinctive place in the minds of the target market. The goal of
positioning is to locate the brand in the minds of consumers to maximise the
potential benefit to the firm. Maggi has positioned itself in the SNACKS
category and not in the meal category since Indians do not consider noodles
as a proper food item. Therefore Maggi have developed its brand image of
instant food products with positioning statements such as “2 minutes noodles
” and “Easy to cook, good to eat”.

42
SWOT ANAYSIS:

 STRENGTH:
 Established Family Brand.
 Strong Global Corporate Brand (NIL).
 Specialization in food processing category marketing and
distribution in urban market.
 Presence of other product segments of food category: dairy
product, chocolate, infant foods.
 Brand loyalty.
 Research and development division in India.

 WEAKNESS:
 Generic brand to Noodles in India.
 Minor distribution problem.
 Heavily dependent one flavour
 Not so much presence in rural market.
 Product are dependent each other.

 OPPURTUNITIES:
 Affinity of Indians to Chinese food
 High brand awareness of Indian consumers.

43
  Other product category like Biscuits, Chips and ready to eat market
still unexplored.
 Opportunities to be substitute to other snacks category of food
products.

 THREATS
 Single product focused competitors like top ramen and Wai Wai
Noodles.
 Less entry barriers in the market segment for product category.
 Consumers don’t perceived it’s as healthy product.
 Substitute product to product segment.

44
 CONCLUSION:

The food processing business in India is at a nascent stage. Currently,

only about 10% of the output is processed and consumed in packaged form thus
highlighting huge potential for expansion and growth. Traditionally, Indians
believe in consuming fresh stuff rather than packaged or frozen, but the trend is
changing and the new fast food generation is slowly changing.

Riding on the success of noodles, Nestle India, tried to make extensions of

the Maggi brand to a number of products like, sauces, ketchups, pickles, soups,
tastemakers and macaroni in the mid-1990s. Unfortunately, the macaroni and
pickles didn’t pick up as expected. The soups and sauces did somewhat fine,
gathering considerable sales volumes and have a satisfactory presence even
today. ‘Maggi Noodles’ itself faced a bit of difficulty with respect to ‘taste’, and
nearly lost its position in the minds of Indian consumers in the late 1990s. When
Nestle changed the formulation of its tastemaker, the ominous packet that came
along with Maggi Noodles, a major chunk of consumers were put-off and sales
started dropping. Also, Maggi’s competitor ‘Top Ramen’ took advantage of the
situation and started a parallel aggressive campaign to eat into Maggi’s market
share. But the company quickly realised this and went back into making the
original formula coupled with a free sampling campaign. This helped Maggi to win
back its lost consumers and pushed up its sales volumes again!

Maggi The year 2008 saw India leading in world wide Maggi sales. The brand
has grown to an estimated value of Rs 160-170 crore and contributes at least 8–
9% to Nestle India’s top line. All the same, some FMCG analysts feel that the
brand has not done much to expand the noodles category. Even after 25 years of
its launch, the size of the instant noodles market is yet quite small at Rs 300

45
crore. But yes, the parent company, Nestle India Limited has certainly
encouraged the brand to enter into other culinary products.

RECOMMENDATION:

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

46
 ANNEXURE

QUESIONNAIRE

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

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

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

 Noodles
 Fast Food
 Snacks
 None of these

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

 Maggi

47
  Top Ramen
 Wai Wai Noodles
 Anil Noodles

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

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

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

 Ketchup
 Noodles
 Soup
 Masala

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

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

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

 Chocolates _____
 Salted potato chips ____
48
  Fruit juices ____
 Processed foods(ready to use pastes and masalas) ____
 Others(please mention) ________________

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

 Expertise
 Trustworthiness
 Liability
 None of these

Q 9. How do you perceive Maggi products?

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

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

(Repositioning Awareness)

 Maggi masala
 Maggi vegetable Atta noodles
 Maggi rice noodle mania
 Others

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

 Yes
 No

49
 BIBILOGRAPHY

 BOOKS:

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

2004.

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

Rrai &Co., 2010.

 WEB SITES:

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

http://en.wikipedia.org/wiki/Fast-moving_consumer_goods

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