EXECUTIVE SUMMARY

The project aims at understanding the Marketing strategies of Nestle

Maggi. Research has demonstrated conclusively that it is far more costly
to win a new customer than it is to maintain an existing one. And there is
no better way to retain a customer than to exceed his expectations. For
this purpose it is essential to know the level of customer satisfaction.
The focus of my research was the measurement of customer satisfaction
provided by Nestle Maggi. There can be no better opportunity to interact
with the external as well as the internal customers of an organization.
Finally the results of the research verify the fact that keeping the
customer satisfied is the best strategy to not only retains the existing
customers but also to expand the business to new horizons. Fast-
moving consumer goods (FMCG)
–
or consumer packaged goods (CPG)
–
Are products that are sold quickly and at relatively low cost. Examples
include non-durable goods such as soft drinks, toiletries, and grocery
items. Though the absolute profit made on FMCG products is relatively
small, they generally sell in large quantities, so the cumulative profit on
such products can be substantial. The term FMCG refers to those retail
goods that are generally replaced or fully used up over a short period of
days, weeks, or months, and within one year. This contrasts with durable
goods or major appliances such as kitchen appliances, which are
generally replaced over a period of several years. FMCG have a short
shelf life, either as a result of high consumer demand or because the
product deteriorates rapidly. Some FMCGs
–
such as meat, fruits and vegetables, dairy products and baked goods
–
are highly perishable. Other goods such as alcohol, toiletries, pre-
packaged foods, soft drinks and cleaning products have high
turnover rates.

TABLE OF CONTENTS

1.
Introduction1.1 Introduction to the report1.2 Company profile1.3 Review of liter
ature1.4 Objective & scope of report1.5 Methodology1.6 Limitation2. Analysis
& interpretation2.1 STP Analysis2.2 SWOT Analysis3. Conclusion &
recommendation Annexure

Questionnaire

Bibliography

CHAPTER - 1INTRODUCTION TO THE PROJECT

The Project entitled ―ANALYSIS OF MARKETING AND PROMOTIONAL
STRATEGIESOF 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 NestleIndia 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 tobecome
a well known and well established brand.

OBJECTIVES OF THE PROJECT:

To Understand the Marketing and Promotional Strategies adopted by

Nestle Maggi.

To understand the brand performance of Maggi product.

To understand Brand Imagery, Brand Quality perceived by customers,

Brand Credibility, consideration, superiority.

Brand extension of Maggi in terms of product diversity.

COMPANY PROFILE
IIINNNTTTRRROOODDDUUUCCCTTTIIIOOONNNTTTOOONNNEEES
SSTTTLLL[Link]
Nestlé S.A.
is among the largest consumer packaged goods companies in the world,
founded and headquartered in Vevey, Switzerland. Nestlé originated in
a1905 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 [Link] 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 wastaken 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 s
witched back to freshmilk. 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 [Link]é felt
the effects of World War II immediately. Profits dropped from US$20
million in 1938 to US$6 million in 1939. Factories were established in
developing countries, particularly Latin America. Ironically, the war
helped with the introduction of the company's newest product, Nescafé,
which was a staple drink of the US military. Nestlé's production and
sales rose in the wartime economy. The end of World War II was the
beginning of a dynamic phase for Nestlé. Growth accelerated and
companies were acquired. In 1947 came the merger with Maggi
seasonings and soups. Crosse & Blackwell followed in 1950, as did
Findus (1963),Libby's (1971) and Stouffer's (1973). Diversification came
with a shareholding in L'Oréal in 1974. In 1977, Nestlé made its second
venture outside the food industry by acquiring Alcon Laboratories Inc.

In 1984, Nestlé's improved bottom line allowed the company to launch a

new round of acquisitions, notably American food giant Carnation and
the British confectionery company Rowntree Mackintosh in 1988, which
brought the Willy Wonka Brand to Nestlé. The first half of the 1990s
proved to be favorable for Nestlé: trade barriers crumbled and world
markets developed into more or less integrated trading areas. Since
1996 there have been acquisitions including San Pellegrino (1997),
Spillers Pet foods (1998), and Ralston Purina (2002). There were two
major acquisitions in North America, both in2002: in June, Nestlé
merged its U.S. ice cream business into Dreyer's, and in August
aUS$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 icecream maker with a 17.5% market share. In
November 2006, Nestlé purchased the Medical Nutrition division of
Novartis Pharmaceutical for $2.5B, also acquiring in 2007 the milk
flavoring product known as Ovaltine. In April 2007 Nestlé bought baby
food manufacturer Gerber for $5.5 billion. In December 2007 Nestlé
entered in a strategic partnership with a Belgian chocolate maker Pierre
Marcolini.

Nestlé agreed to sell its controlling stake in Alcon to Novartis on4

January 2010. The sale forms part of a broader US $39.3 billion offer by
Novartis to
fully acquire the world‘s largest eye
-care company.

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

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

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

Sales by geographic area breakdown: 32% from Europe, 31% from

Americas(26% from US), 16% from Asia, 21% from rest of the world.
JOINT VENTURES:
Nestlé holds 26.4% of the shares of L‘Oreal, the world's largest company in
Cosmetics and beauty. The
Laboratories Inneov
is a joint venture in nutritional cosmetics between
Nestlé and L‘Oreal, and
Galderma

a joint venture in dermatology with L‘Oreal. Others

include Cereal Partners Worldwide with General Mills, Beverage

Partners World wide with Coca-Cola, and Dairy Partners Americas with
Fonterra.

INDUSTRY PROFILE
Fast Moving Consumer Goods (FMCG) goods are popularly named as
consumer packaged goods. Items in this category include all
consumables (other than groceries/pulses) people buy at regular
intervals. The most common in the list are toilet soaps, detergents,
shampoos, toothpaste, shaving products, shoe polish, packaged
foodstuff, and household accessories and extends to certain electronic
goods. These items are meant for daily of frequent consumption and
have a high return. The Indian FMCG sector with a market size of
US$14.8 billion is the fourth largest sector in the economy. The FMCG
market is set to double from USD 14.7 billion in2008-09 to USD 30
billion in 2012. FMCG sector will witness more than 60 percent growth in
rural and semi-urban India by 2010. Indian consumer goods market is
expected to reach $400 billion by [Link] care, household care, male
grooming, female hygiene, and the chocolates and confectionery
categories are estimated to be the fastest growing segments. At present,
urban India accounts for 66% of total FMCG consumption, with rural
India accounting for the remaining 34%. However, rural India accounts
for more than 40% consumption in major FMCG categories such as
personal care, fabric care, and hot beverages. In urban areas, home and
personal care category, including skin care, household care and
feminine hygiene, will keep growing at relatively attractive rates. Within
the foods segment, it is estimated that processed foods, bakery, and
dairy are long-term growth categories in both rural and urban areas. The
growing incline of rural and semi-urban folks for FMCG products will be
mainly responsible for the growth in this sector, as manufacturers will
have to deepen their concentration for higher sales volumes.

Major Players in this sector include Hindustan Unilever Ltd., ITC (Indian
Tobacco Company), Nestlé India, GCMMF (AMUL), Dabur India, Asian
Paints (India), Cadbury India, Britannia Industries, Procter & Gamble
Hygiene and Health Care, Marico Industries, Nirma, Coca-Cola, Pepsi
and others. As per the analysis by ASSOCHAM, Companies Hindustan
Unilever Ltd , Dabur India originates half of their sales from rural India.
While Colgate Palmolive India and Marico constitutes nearly 37%
respectively, however Nestle India Ltd and GSK Consumer drive 25 per
cent of sales from rural India. A rapid urbanization, increase in demands,
presence of large number of young population, a large number of
opportunities is available in the FMCG sector. The Finance Minister has
proposed to introduce an integrated Goods and Service Tax by April
[Link] is an exceptionally good move because the growth of
consumption, production, and employment is directly proportionate to
reduction in indirect taxes which constitute no less than 35% of the total
cost of consumer products - the highest in Asia. The bottom line is that
Indian market is changing rapidly and is showing unprecedented
consumer business opportunity.
MAJOR COMPETITORS OF NESTLE MAGGI
Maggi instant noodles, foods major Nestle's flagship brand that has
dominated the Indian instant noodles market for nearly three decades, is
losing market share on a monthly basis to newer entrants such as
GlaxoSmithKline's (GSK) Horlicks Foodles, Hindustan Unilever's (HUL)
Knorr Soupy noodles, Big Bazaar's Tasty Treat, Top Ramen and several
other smaller players, according to data by market research firm Nielsen.

The data shows that Maggi's share of instant noodles, on an all-India

basis, across urban markets, has slipped consistently between
December '09 to July '10. While Maggi instant noodles (minus vermicelli)
had a 90.7% share in December '09, the sharedropped to 86.5% in July
'10 on an all-India basis. A regional split of the data shows that Maggi's
instant noodles' value market share has fallen across the east, south,
north and west zones for the same period. Analysts say with new
competition, Maggi's market share is certain to get impacted , but add
that Nestle has the potential to expand the Rs 1,300-crore instant
noodles category
–
which itself is growing at a rapid 15% annually. A detailed email sent to
Nestle on Thursday elicited no response.

Apart from HUL and GSK which have positioned their noodles as
'healthy' snacking options targeting kids and mothers, others like Indo-
Nissin's Top Ramen, Capital Foods' Ching's Secret and CG Foods's
Wai-Wai , though around for long, are stepping up marketing efforts to
take advantage of category growth. Besides, private brands like Big
Bazaar's Tasty Treat and Aditya Birla Retail's Feasters are notching up
share. Manoj Menon, FMCG analyst at brokerage firm Kotak Securities,
wrote in a report earlier this month: "Maggi faces product substitution
risk and brands like Knorr and Foodles could potentially impact its
incremental growth. Nestle faces a challenging competitive environment
in culinary. "GSK, which entered the category in December last year,
has taken away share from Maggi mainly in the South and East riding on
the equity of Horlicks and its well-entrenched distribution in the regions.
GSK's executive VP, marketing, Shubhajit Sen, said: "Consumers were
looking for achoice in instant noodles; combined with that, the equity of
Horlicks is leading to a lot of trails. The initial response to Foodles is
much higher than our expectations. "On the other hand, HUL, which
rolled out Knorr Soupy noodles in the South this February, had to
postpone the brand's national launch due to capacity constraints
because of heavy consumer offtake. An HUL spokesman said: "We are
very pleased with the performance of Knorr Soupy noodles. "Private
brands are whetting appetites of consumers too. According to Devendra
Chawla, business head, private brands, Future group: "The category
boundary is set to be re-drawn. From a snack food targeted at children,
instant noodles category has evolved as a mainstay meal even for
grown ups."
Mr Chawla said Tasty Treat was the second biggest instant noodles
brand in its Big Bazaar stores after Maggi. The brand packaging was
revamped last year and Future plans to roll out additional variants in a
month's time taking the number of variants to nine from the existing
three.

INTRODUCTION
HISTORY OF MAGGI
–
INDIA:
Nestlé India Ltd. (NIL), the Indian subsidiary of the global FMCG major,
Nestlé SA, introduced the Maggi brand in India in 1982, with its launch of
Maggi 2 Minute Noodles, an instant noodles product. With the launch of
Maggi noodles, NIL created an entirely new food category – instant
noodles - in the Indian packaged food market. Because of its first-mover
advantage, NIL successfully managed to retain its leadership in the
instant noodles category even until the early [Link] 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 early2000s, 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 aid sunder the Maggi brand. However,
these products were not as successful as the instant noodles. In the
early 2000s, Maggi was the leader in the branded instant noodles
segment, and the company faced little serious competition in this
segment. In July 2001, Maggi replaced Nescafé (NIL's coffee products
brand) as the company' score brand. Nescafé had been NIL's core brand
since [Link] on the shift, Carlo Donati (Donati), chairman
and managing director, NIL, said, "The focused approach on Nescafé,
which was the company's flagship brand over the last few years, has
yielded rich dividends and we plan to replicate the same in case of
Maggi as well. "In the early 2000s, the Nestlé Group had been taking
measures to transform itself into a 'health and wellness' company. The
company had also set up new research and development facilities with a
view to improving the attributes of the existing Nestlé products to make
them healthier, and to develop new health and wellness products. Since
the early 2000s, the Nestlé Group had been introducing 'health and
wellness

products all over the world. In India, NIL introduced new 'healthier'
weaning and milk products in [Link] 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 [Link] also became
successful in sauces, ketchups and soups Market in India. Though NIL
tried to extend to other ready to eat products like pickles, cooking aids
and paste, It was unsuccessful so dumped those products. Maggi Brand
of products sustained recession in 2000 and 2001 in India by introducing
economy packets.

To fulfill novelty needs of customers and revitalize Maggi Noodles Brand

NIL made different attempts by introducing new formulation to new taste
but customers resisted change and Maggi had to reintroduce Maggi
Noodles in same taste. Maggi Noodle had till 2005 five product line on
noodles with four variant in Maggi 2 Minutes Noodle. In
2006 in compliance with NIL target to be ―health and Wellness Company‖ Maggi
repositioned it as health and taste food products. NIL has also
introduced with taste and product line in Sauces and Soup Market under
Maggi to catch new segment, revitalize brand, compete with other
producers and fulfill expectation of customers. In 2005 Maggi brand
worth was 3.7 billion from 1.7 billion market worth in 1.7 billion in2003.
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 1.8billion market of India. Knorr has taken over
Maggi in Soup market recently. In 2005 Maggi was the highest spender
in the Promotion and Sales in the Indian Market in the Noodles
Category.

Maggi is competing with Heinz Sauces and Ketchup, Knoor Soups,

Kissin Sauces and Ketchup, Top Ramen, Sunfeast Pasta Wai Wai and 2
PM in corresponding categories of products and variants
MAGGI TODAY:
The year 2003 saw India leading in worldwide Maggi sales. The brand
has grown to an estimated value of Rs 160-170 crore and contributes at
least 8
–

9% to Nestle India‘s
top line. All the same, some FMCG analysts feel that the brand has not
done much to expand the noodles category. Even after 20 years of its
launch, the size of the instant noodles market is yet quite small at Rs
200 crore. But yes, the parent company, Nestle India Limited has
certainly encouraged the brand to enter into other culinary products.
Carlo Donati told a leading newspaper that he wants to sell two and a
half times of what he is selling today, in the next 10 years. Of course,
being a first-mover - or even a market dominator - counts for nothing
if marketers let their guard down. Maggi noodles, which built itself on the
taste-and-convenience platform through the 80s and early 90s, started
facing the heat from Indo
Nissin‘s Top Ramen brand around 1995. The latter began pushing
forward aggressively
on a combination of taste variants, smart audience segmentation and Shahrukh
Khan‘s
brand endorsement. Nestle promptly re-jigged its offering with a new
taste -
which didn‘t go down well with
the consumer. In 1999, Maggi was relaunched with its original taste, and
sustained

efforts saw the brand reclaiming lost ground. Since then, the brand has
been innovating
constantly to keep share. ―Maggi adapted to local tastes and withstood
competition over the years and has continuously sensitised itself to the evolving
Indian consumer,‖ says
Martial Rolland, chairman and managing director, Nestle India.
MARKETING MIX

PRODUCTS OF MAGGI:

NOODLES:

MAGGI 2
–
MINUTE NOODLES:
MAGGI 2-Minute Noodles
is one of the largest and most loved food brands that defines Instant
Noodles in India. Continuing to spread joy as it has done for the last 25
years, your favorite MAGGI Noodles is as tasty as ever and even
provides essential nutrientsfor all stage of your life. With the goodness of
Protein and Calcium, MAGGI Noodles is available in 4 delectable flavors
–

Masala, Chicken,Tomato and [Link] 2- MINUTE NOODLES

MAGGI VEGETABLE ATTA NOODLES:

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

MAGGI CUPPA MANIA:

Each offering of MAGGI Noodles has been developed keeping in mind
the Indian palate and what you like. S
ince 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 prepareand eat
and also satiates your hunger .MAGGI Cuppa Mania is a combination of
all the above! In an easy to carryon-the-go Cup format, MAGGI Cuppa
Mania comes in two mouth wateringvariants
–
Masala Yo! And Chilly Chow Yo! Packed with real vegetables

and the goodness of Calcium,

just add garam paani*
to the Noodles andvoila! A cupful of delicious MAGGI Cuppa Mania is
ready for you to
carryon jaani! MAGGI CUPPA MANIA

SOUPS:

MAGGI HEALTHY SOUPS:

MAGGI was the pioneer of Instant Soups in India. The new MAGGI
Healthy Soups have been carefully prepared through the Research and
Development efforts of Nestlé Group and are even more delicious, quick
to prepare, convenient and healthy.
Taste Bhi, HealthBhi!.
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 Chick
en- Oriental Thai Noodles

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

SANJEENI MAGGI HEALTHY CUP:

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

MAGGI SOUPS
SAUCES:

MAGGI SAUCES:
MAGGI Sauces have been an integral part of the Indian
consumers'household for decades now. To cater to the diverse Indian
palate, MAGGI has a host of variants
like:- The quintessential Rich Tomato Ketchup and Rich Tomato Sauce.-
The unique Hot & Sweet Tomato Chilli Sauce and Oriental Chilli Garlic
sauce.

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

MAGGI SAUCES

MAGGI PICHKOO:
Pichkoo is a small doy pack which makes MAGGI Tomato ketchup
affordable to a host of new consumers. And now, MAGGI makes
thedelight "Bigger' by introducing a Bada Pichkoo. A large Tomato
Ketchup doy pack which ensures that the fun goes on and on.

It's endearing name, packaging and great taste evoke a resounding

reaction. "New MAGGI Pichkoo -
It's different!
"
MAGGI PICHKOO

PASTA:

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

COOKING AIDS:

MAGGI MAGIC CUBES:

MAGGI Magic Cubes enhance the taste of your everyday dish, making it
aspecial 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
intensiveresearch and in-depth understanding of Indian food habits and
cookingpractices, MAGGI Bhuna Masala allows the housewife to
prepare a largevariety of tasty dishes without the hassle of chopping and
frying. The
dishes retain that ‗special touch‘ of the housewife as she adds her ownspices…..
Standing strong on its promise of ―Taste Bhi, Health Bhi‖,
MAGGI Bhuna Masala comes with
"no added preservatives", "containsonly 1 tbsp* of oil" and "tastes just
like homemade."
Gives you aperfect dish in three simple steps:

Open the pack & pour contents in the pan

Add vegetables/paneer/chicken/rajma etc.

Add spices and cookMAGGI 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
quicklyand conveniently by simply adding warm water. It is
manufactured fromthe best Sri Lankan coconuts. Easy to use and ideal
for curries, ricepreparations, cakes, cookies and blender drinks. MAGGI
Coconut MilkPowder gives you the taste of real coconuts and has no
addedpreservatives.
MAGGI PIZZA MAZZA:
Now you do not need to order pizzas from outside and wait for 30
[Link] MAGGI Pizza Mazza you can prepare delicious pizzas
withinminutes. You can also have the mazza of the pizza on other items
likenaans, footlongs and of course the most easily available of them all
–
bread slices. Available in a 300 gm jar, each bottle is good for 5
pizzabases.

MAGGI MASALA
–
AE
–
MAGGI:
The first ever fortified taste enhancer that can be used across
differentcuisines in India. It is not a simple masala, but is unique in that it
efficientlyenhances the taste inherent in the food ingredients already
[Link] is specifically fortified with Iron, Vitamin A & Iodine that are
known to bewidespread deficiencies in [Link] food now
becomes delicious & healthier in 2 simple steps:

Cook Dish as you normally do

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

PRICE OF MAGGI:

Considering the price points in the market for Maggi, it should continue
to
position itself in the ―snack‖ category itself, since few would be willing to
accept it as a meal.
The company is taking no chances and is extending its distribution reach
to
smaller towns and cities. Maggi happens to be Nestlé‘s
most widely distributed brand in the country. Through
independentchannels, it reaches those villages where the company has
no presence,
according to Hegde. This is also the time that Maggi‘s value
-for-moneypack priced at Rs 5 is expected to come handy. (The regular
pack comesfor Rs 10.)

Affordable by all income groups.

PLACE( DISTRIBUTION);

The distribution network is well spread.

Easily available in all retail stores.

Distribution channel
–
PRODUCER - DISTRIBUTOR - RETAILER
–
CONSUMER

EEEXXXAAAMMMPPPLLLEEEOOOFFFMMMAAAGGGGGGIIIPPPLL
LAAACCCEEE(((DDDIIISSSTTTRRRIIIBBBUUUTTTIIIOOONNN)))
PROMOTION OF MAGGI:

They promote their product very effectively through television.

They have applied the strategy of brand extension.

They also sponsor various cookery shows to promote alternate usage

of products.

They also use strategy of free product samples to promote it.

Celebrity endorsements. Eg. Javed Jafferi PROMOTION

Less promoted as compared to maggi.

No particular celebrity endorsement.

The utter confusion regarding the long-term strategy for Kissan brand
was visiblethrough the experiments that were conducted on this brand
by Hll.

But with a brand which had a tremendous equity during the late nineties
andearly 2000, HUL had weird plans. One of the major casualties of MS
Banga'sPower brand strategy was Kissan. During the early 2000, the
brand Kissan wasrebranded as Kissan Annapurna. Kissan Annapurna
was marketing not jams andsquashes by Atta, salt and other staple
foods. Later Annapurna and Kissan wassplited into two separate brands
, one concentrating on staple foods and other onprocessed foods. This
migration strategy proved to be very costly for both Kissanand
Annapurna brand. Kissan was synonymous with Jams and Squashes
duringits initial years. Kissan Ketchup was a market leader in ketchup
segment butthese experiments and myopic strategies pushed the brand
behind the focusedand aggressive Maggi.

So all through the period 2001-2005, Kissan was in a sticky wicket. But
nowaccording to reports, the brand mandarins of HUL is now clear about
Kissan as abrand for processed food like Jams , ketchups and like, That
change is visible inthe recent campaign of Kissan which takes a unique
view of Ketchup. Taking thetagline " Aao banaye pakode behtar"
translated to " Making Pakode taste better".

In these series of ads, the brand plays a second fiddle to the main
snack. Thebrand takes the positioning of a "Great Accompaniment
"Maggi has faced lot of hurdles in its journey in India. The basic problem
the brand facedis the Indian Psyche. Indian Palate is not too
adventurous in terms of trying new [Link] may be the reason why
we are still stuck with Dal. So a new product with a new

taste that too from a different culture will have difficulty in appealing to
Indian [Link] Nestle tried to position the Noodles in the platform
of convenience targeting theworking women. But it found that the sales
are not picking up despite heavy [Link] then showed that
Kids were the largest consumers of the brand. Realisingthis, Nestle
repositioned the brand towards the kids using sales promotions and
[Link] Indians are the largest eaters of Maggi Noodles in
the world. MaggiNoodles is a marketing success [Link] 1997
Maggi changed its formulation. It was during that time that Indo Nissin -
aJapanese company launched its Noodles brand "Top Ramen" with lot
of promotion andwith SRK endorsing the brand. TopRamen gave Maggi
a run for its money. The changein taste of Maggi was a mistake. The
consumers rejected the new taste of Maggi. And in1999 Maggi
relaunched Noodles with the original taste. Nestle was ready to accept
theconsumers verdict and it paid off handsomely. Top Ramen could not
sustain the growthit had for [Link]'s campaigns were revolved
around its "convenience to make and good to eat "qualities. Ready in " 2
minutes " was a proposition that was well received by the [Link] 2005
Nestle made a very smart move. It knew that although kids love noodles,
theparents were bothered about the health aspect of Noodles which was
made of [Link] Maggi launched Maggi Atta Noodles with the
baseline " taste bhi health bhi".Reports suggest that after 10 months of
the launch , the product has been wellreceived by Indian consumers.
Maggi noodles is an example of a brand that knows thecustomer and
willing to learn from the mistakes.

Maggi also tried to leverage the success of the Noodles to other food
products likesauces , tastemakers , soups [Link] sauces needs
special mention because it is another success story. Maggi have
amarket share of 45% in the 180crore ketchup market in India. Maggi
leveraged thebrand equity very effectively. The product quality was good
and the communication wasexcellent. The brand was positioned as a
"Different" sauce with the baseline " Itsdifferent".Customers was
intrigued as to what is different about the brand and was curious to
trythe sauce ( may be surprised to find nothing different,but that is
marketing honey!). Theads featuring Javed and Pankaj kapoor was
superb and funny. It was created by [Link] new campaigns are
handled by Publicis and the baseline has been changed to "enjoy the
difference".There was no need to change the baseline,may be ad
agencies have an ego problem inaccepting the creativity of another
agency. So agencies change the baseline even at thecost of the
[Link] this case even though the new baseline " enjoy the difference"
wasnot very different from the old one, was it a change for the sake of
change ?I strongly feel that the brand managers should take the
ownership of the brand and theway it is communicated. If it is left to
agency alone, every time the agency changes, thecommunication
[Link] after its long and tough journey is enjoying its well
deserved success.

MAGGI SAUCE AD
–
JAVED JAFFERY
MMMAAARRRKKKEEETTTIIINNNGGG&&&PPPRRROOOMMMOOO
TTTIIIOOONNNAAALLLSSSTTTAAATTTEEEGGGIIIEEESSS
PRODUCT LIFE CYCLE OF MAGGI:

INTRODUCTION:

The Product launched keeping in mind the working women and

childrens.

It was the pioneer in instant noodle market.

Distribution Stage PRODUCER

–
DISTRIBUTORS
–
RETAILERS
–
CONSUMERS.
PRICING: The initial pricing strategy was low pricing strategy to
makeproduct affordable.

PROMOTION

-
Promoted with tag line ―BAS 2 MINUTE.‖

-
Promotion done by giving gift on empty packs.
-
Promotion in school.

GROWTH:

Increased No. of sales.

Accepted as ready to eat food.

Enjoyed 50% market share valued at 250 crores.

Profits begin to rise.

Maggi become the No. 1 brand in Instant noodles market.

PRICING: Prices were kept normal.

PRODUCT: No any new changes

PROMOTION: Promoted with the tag line ―Good to eat fast to cook‖
MATURITY:

Declining sales growth.

Saturated market.

Extending product line.

Large promotional offers.

Entrance of new players -

During the period of 90‘s MAGGI faces the
tough competition from TOP RAMEN.

PRODUCT: MAGGI introduced wide variety of products

like Dal attanoodles, chicken maggi, maggi cuppa mania.

PRICE: Maggi still comes in very affordable prices starting from Rs.
5,theyreduced the quantity instead of increasing price.

DISTRIBUTION: Distribution become more intensive. Various

intensiveprograms for encouraging products over other competitors.

DECLINE:

Sales
saw a decline in 1990‘s –
Formulation changed from fried base toair dried base.

New product launched but failed- Dal atta noodles sambar flavor

Tough competition from Top Ramen.

Failure of other products like Soups, Cooking aids etc.

PRODUCT LIFE CYCLE
STRATEGIES ADOPTED BY NESTLE:

Nestle manages to create new product categories under the

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

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

Nestle also used the cultural base marketing in India as knowing thefact
that Indian people like Rice, they introduced Maggi Rice NoodlesMania.

Nestle was able to successfully use the umbrella branding for

[Link] introduced many variant under the brand name of Maggi.
Bydoing so, They were successful in making the product popular.

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

theconsumers as the fast food item.

On the other hand they also introduced some categories which

arehaving the complete diet in the form of noodles. They said that
thesecontain some protein and calorie level which is must for the
[Link] doing the emotional marketing they were successfully able
topromote these products: MAGGI Vegetable atta noodles, Dal
attanoodles, 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 decidednot 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
[Link] campaign seeks to strengthen the [Link],
customers will be
invited to share their ―Maggi moments‖ with the
company. If the company likes the way you prepare Maggi, you could
findyour photo on Maggi packs. A new website
[Link] isalso in the works.

Good Packaging and Strong Dealer Vendor Relations:

Conveniencewas the unique selling proposition of Maggi when it was
launched 25 years [Link] the first time, consumers got something that
was hygienically packed andconvenient to prepare. It was also the first
fusion experiment on food in India.

Continuous process innovation:

Instant noodles was an entirely newcategory 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 havesurvived
—
masala and chicken which sells largely in the eastern
[Link] to be the flagship flavour. In the days that
followed, it experimentedwith more variants, like a garlic- and onion-free
one for [Link] of thesestill exist, others were [Link]
turning point came in 2005, when Nestlé came out with Maggi
atta(whole-wheat flour) instant noodles. All over the country, atta is
consideredhealthier than maida or refined flour which the company was
using from day [Link] helped the company take the health platform,
though Nestlé GeneralManager (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,
healthbhi, taste bhi (health as well as taste).

Repositioning as a healthier snack:

―It is no longer an aspirational

product for any socio-
economic category of consumers,‖ says Hegde
That was also the time when Nestlé was repositioning itself worldwide as
ahealth and wellness company. At the grassroots level, Maggi
startedassociating with quiz contests and other such events connected
to mental andphysical [Link] positioning gave Nestlé the
platform to launch more products under theMaggi 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 [Link]
2008, two brand extensions
—
Maggi Bhuna Masala and Maggi Cuppa ManiaInstant Noodles .

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

Capturing New Customer Base :

Maggi realised that one of the reasonsfor 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 devoidof onions and garlic and marketed it as Jain Maggi. This helped
them gain acompletely 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 thisyear of its instant Noodles brand, Maggi Called Me &
Meri Maggi, the campaignis celebrating
the consumer‘s bond with Maggi. The company is doing―360degree activation‖
across
television, print and the internet, beside on-groundactivities. Nestle has
also launched an interactive website for
theconsumers,[Link] packaging has been tweaked to
accommodate the pictures of consumerswhose
entries the Company chooses. ―If a consumer has a story to tell about
Maggi will put him
or her on the Packaging, TV or print,‖

MAGGI‟S BRAND EXTENSION:

In 1998, Nestle launched Maggi‘s first brand

extension, Maggi soup. At this stage,There was no organized packaged
soup market in India. Nestle planned to create amarket for packaged
soup as it felt the category had a lot of potential. However,according to
analyst, the company had introduced soups
only to cash in on the Maggi‘s
brand name, and was never very serious about the segment.

In 1993, ―Sweet Maggi‖, the first variant of Maggi noddles was launched. The
company
supported the launch with a huge advertisement outlay that amounted
to 75% of thetotal yearly expenditure on the Maggi brand. However, the
product failed to generate thedesired sales volume and Nestle was
forced to withdraw it. At the end of the year,Maggi noodles was
generating sales volume of around 5000 tonns and remained a
lossmaking proposition for [Link] boost sales, Nestle decided to
reduce the price of Maggi noodles. This was madepossible by using
thinner and cheapeer packaging material, the company alsointroduced
―money saver

multi packes‖ in the form of 2

-in-1 pack and 4-in-1 packs. As aresult volume increases phenomenally
to 9700 tonnes in 1994 and further to 13000tonnes in 1995.
Maggi‘s euphoroia was, however, short lived, as sales stagnated in
1995 at the previous years level. With soup business being
threatned by a new entrant
―Knorr soups‖ launched in

1995, offering 10 flavors against Maggi‘s 4 the company

started rethinking its strategies towards the soup market.
In order to stretch Maggi‘s brand to include Indian ethenic foods the company tied
up
with a Pune based chordia foods to launch pickles under the year 1995.
The companyalso tied up with Indian foods fermentation (IFF), a
Chennai based food company tomarket popular south Indian food
preparation such as sambher, dosa, vada and spicesin consumer packs
in Dec 1995. The company reportedly saw a lot of untabbedpotential in
the market for ready to use south Indian [Link] 1996, products from
these two ventures received lukewarm response from themarket; sales
were rather poor in the regions in which they were aunched.
Analystsattributed the failure of these Maggi extensions to the fact that
Nestlé seemed to beparticularly bad at dealing with traditional Indian
product categories. Maggi noodles

performed badly in 1996. Despite slow sales in the previous two years,
Nestlé had set asales target of 25,000 tonnes
for the year. However, Maggi couldn‘t cross even 14,000
tonnes. Adding to the company
woes was the failure of Maggi Tonite‘s Special, a range
of cooking sauces aimed at providing
‗restaurant
-like-
taste‘ to food cooked at home.
The range included offerings such as Butter Chicken gravy and tomato
sauce for [Link] these failures, and buoyed by the fact
that the Maggi brand finally brokeeven in 1997, Nestlé continued to
explore new options for leveraging on the brandequity of Maggi noodles.
The company realized that the kids who had grown up onMaggi noodles
had become teenagers by the late 1990s. As they associated theproduct
with their childhood, they seemed to be moving away from it. To lure
back thesecustomers and to explore new
product avenues, Nestlé launched ‗Maggi Macaroni‘ in
July 1997. According to analysts, Maggi Macaroni was launched partly
to deal with thegrowing popularity of competing noodles brand Top
Ramen. Maggi Macaroni was madeavailable in three flavors, Tomato,
Chicken, and Masala. The company expected torepeat the success of
Maggi noodles with Maggi Macaroni. As with most

of its product
launches, Maggi Macaroni‘s launch was backed
by a multi-media advertisementcampaign including radio, television,
outdoors and print
media with the tagline, ‗Tum
Roz Baby.
The product‘s pricing, however, proved to be a major hurdle. A 75
-gm Maggi Macaronipack was priced at Rs 11, while a 100-gm noodles
pack was available at Rs 9. According to analysts, Nestlé failed to justify
this price-value anomaly to customers, whofailed to see any noted value
addition in Maggi Macaroni (packaging and flavor variantswere similar to
those of Maggi noodles). In addition, customers failed to see
anysignificant difference between Maggi Macaroni and the much
cheaper macaroni that

was sold by the unorganized sector players. The biggest problem

however was thetaste of the new product. Since macaroni is thicker than
noodles, Maggi Macaroni didnot absorb the tastemaker well and
consequently did not taste very good. The interestgenerated by the
novelty of the product soon died out and sales began tapering
[Link], Nestlé had to withdraw Maggi Macaroni completely from
the market.
Nestlé had not even recovered from Macaroni‘s dismal performance, when it
learnt to its
 horror that Knorr had dethroned Maggi as the leader in the soup
segment (end of 1997).The only saving grace for Maggi seemed to its
ketchups and sauces, which wereturning out to
the ‗rare‘ successful extensions of Maggi. These products were supported
by a popular advertisement campaign for the Maggi Hot & Sweet sauce
brand. Thesehumorous advertisements, featuring actors Pankaj Kapoor
and Javed Jafri, used the
tagline, ‗It‘s

different.‘ However, during mid

-1997, HLL began promoting its Kissan rangeof sauces aggressively and
launched various innovative variants in the [Link]é responded
with a higher thrust on advertising and different size packs atdifferent
price points. Though Kissan gained market share over the next few
years,Maggi was able to hold on to its own market share. Meanwhile the
operational costs of Maggi noodles had increased considerably, forcing
the company to increase the retailprice. By early 1997, the price of a
single pack had reached Rs 10. Volumes were stilllanguishing between
13,000- 14,000 tonnes.

PRICING AND PRODUCT DEVELOPMENT:

It was at this point in time that Nestlé decided to change the formulation
of Magginoodles.
The purpose was not only to infuse ‗fresh life‘ into the brand, but also to save
money through this new formulation. The company used new noodle-
processingtechnology, so that it could air-dry instead of oil-
fry the noodles. The tastemaker‘s
manufacturing process was also altered. As a result of the above
initiatives, costsreportedly came down by 12-14%. To cook the new
product, consumers had to add twocups of water instead of one-and-a-
half cups. The taste of the noodles was significantlydifferent from what it
used to be. The customer backlash that followed the launch of thenew
noodles took Nestlé by surprise. With volumes declining and customer
complaintsincreasing, the company began to work on plans to
relaunch ‗old Maggi‘ to win back
customers. In addition, in 1998, Nestlé began working out a
strategy to regain Maggi‘s
position in the soup segment. To counter the Knorr threat, the company
relaunched
Maggi soups under the ‗Maggi Rich‘ brand in May 1998. The soups
were not onlythicker in consistency than those produced earlier, the
pricing was also kept competitiveand the packaging was made much
more attractive. However, Knorr took Nestlé bysurprise by launching
one-serving soup sachets priced as low as Rs 4. HLL toolaunched two-
serving sachets of Kissan soup priced at Rs 7. As Maggi did not have
anyofferings in this price-range, it lost a huge portion of its market share
to Knorr.
The relaunch prompted market observers to compare Nestlé‘s move with US soft
drinks
major Coca-
Cola‘s ‗New Coke‘ fiasco. However, the company disagreed, ―It‘s a hard
-5nosed
strategy, that mixes nostalgia with the consumer‘s voiced preference for the
product it has
been bred and rought up on. The reintroduction is Nestlé‘s
acknowledgement of the loyalty of the Indian mother and the child to the
original
product.‖ By May 1999, Nestlé‘s decision to

bring back the ‗old Maggi‘ seemed to have

paid off. Two months after the relaunch, the monthly average sales of
Maggi noodles nthe northern region rose 50% in comparison
to the previous year. In July 1999, ‗Maggi‘the brand, was promoted as the biggest
brand in Nestlé‘s
portfolio of brands in India,overtaking brands such as Nestum and
Cerelac. Nestlé believed that Maggi had
immense potential as it was a very ‗flexible‘
brand under which regional variants couldbe introduced to meet various
market needs. Company sources claimed that withreasonable price
points and innovative products, Maggi could emerge as a top brandand
a major growth driver for the company. To further support the brand,
Nestlé carriedout
various promotional activities as well. These included the August 1999 ‗Fun
-
Dooz‘
campaign and Jungle Jackpot campaigns. 6 As a result of the above
initiatives, Nestléclaimed to have cornered an 81% market share of the
20,000 tonnes noodles market bythe end of 1999. Nestlé sources
claimed that Maggi noodles outsold the competitionfour times over and
that more than four Maggi noodle cakes were consumed everysecond in
the country.

MARKET PENETRATION STRATEGY:

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

Started their advertising straight focusing on kids.

Introduced new products like atta noodles dal atta noodles cuppa mania.

Products are made available in different packages like

50,100,200,400Gms.

Keep on conducting market research to understand changes in market.

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

Sales saw decline in 1990: The Company saw a decline in the sales
in1990. When the company tried to find out what the reason was, they
cameto know that there was some thing wrong with the formula that
spoiled thetaste. So the formula was changed from fried base to oiled
dried base.

Competition increased in noodle segment: When Maggi was

enjoyingbeing the only noodle offering by any company Top ramen
entered themarket 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

itsofferings by offering Dal atta noodles & Sambhar flavor noodles. But
theseproducts were not welcomed by the people the very special taste
of Maggiwas still ruling the consumer.
Maggi launched some new products: Ketchups, Soups, Taste makers
[Link] they were not successful.

OBJECTIVES & RESEARCH METHODOLOGY

Qualitative method will be used in the study. Qualitative method strives
onunderstanding data through giving emphasis on determining people wordsand
[Link] project titled as mentioned involves the study of Marketing
&promotional strategy of Nestle Maggi is completed by collecting data
fromthe below mentioned two sources-
Sources of Data collection

Primary source
The primary data used in this report include the questionnaire in
whichthe consumer/customer data is collected regarding their views
towardsnestle maggi.

Secondary source
This will include data collection from various websites and books. It
alsoincludes data from company and other referral sites and sources.

LIMITATION OF THE REPORT

Every attempt will be taken to obtain the error free and meaningful result
but as nothingin this world is 100% perfect I believe that there will still
the chance for error on accountof following limitations-
(1) Respondent‘s unavailability.
(2) Time pressure and fatigue on the part of respondents and
interviewer.(3) Courtesy bias.(4) The project undertaken needs a lot of
secondary data so the availability andprecision 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
anorganization.(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 isnot fully exact.(8) There was
a hurdle in the collection of data from primary sources i.e. risky as well
asincomplete.

CHAPTER- 3ANALYSIS & INTERPRETATION

Q 2. What comes first in your mind when you hear the word
MAGGI?
Noodle 35Fast food 10Snacks 5None of these 0
0510152025303540n o o d l e s f
a s t f o o d s n a c
k s n o n e o f t h
e s e

Interpretation
Out of 50 around 35 agreed that when they hear the word MAGGI first
noodles comesin their mind & 10% said fast food & other said snacks.
Q 3. What is the brand that comes to your mind when we say the
word noodles?
Maggi 38yippie 10Topramen noodles 2 Anil noodles 0

Interpretation
Out of 50 approx 38 % of people said when they talk about noodle
maggie comes first intheir mind & 10% said yippie noodle comes in their
mind & other said topramen.
Q 4. Rank the following Maggi products w.r.t frequency of purchase
with beingthe highest rank
01020304050maggitop ramenwai wai noodleanil noodle

Noodles 1 rankKetchup 2 rankSoup 4 rankpickles 5 rankcubes 3 rank

Interpretation
No of customer given rank 1 to the noodles in purchase of maggi
product, rank 2 to theketchup, rank 3 to the cubes, rank 4 to the soup &
rank 5 to pickles in purchase of maggi product.
Q 5. With what product would you associate the brand Maggi?
Ketchup 12%Noodles 75%Soup 10%Masala 3%

Interpretation
75% of consumer associate the noodle with brand maggi, 12%
consumer associate theketchup, 10% consumer associate with soup &
3% associate the masala with brandmaggi.
Q 6. On a scale of 1 to 5 rate Maggi on the following parameters
ketchupnoodlesoupmasala

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

Interpretation
From the scale 1 to 5 the consumers gave 5(highest rate) to the taste
& avalability, 4rate to the hygiene/purity & packaging & 3(lower rate) to
the variety & flavour. So thecompany need to introduce maggi in
different variety & flavour.
0123456t a s t e h y g i e
n e v a r i e t y a v a
i l a b i l i t y p a c
k a g i n g

Q 7. Rank the categories which Maggi should look in future in order

of yourimportance:
Chocolate 7Salted potato chips 15Fruit juice 3Processed foods 20others
5
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 insalted potato chips, 7% said it should be in
chocolate , 3% in fruit juce & remaining said
chocolatepotato chipsfruit juiceprocessed foodother

others. So company should take the action to fulfill the consumer

demand according totheir importance.
Q 8. How do you rate Maggi brand in terms of following parameters.
Expertise 4Trustworthiness 5Liability 3None of these 1
0123456e x p e r t i s e t r u s t w o r
t h i n e s s l i a b i l i t y n o n e
o f t h e s e

Interpretation
The consumer rate the maggi in the parameters expertise,
trustworthiness, liability,none of [Link] gave 5(highest) to the
trustworthiness, 4 to expertise, 3 to liability &1(lowest) to the other
factores.
Q 9. How do you perceive Maggi products?
Good to health 15Ready to eat 25Junk food 3Tasty/fun eating 7
0 5 1
0 1 5
2 0 2
5 good to healthready to eat junk foodtasty/fun
eating

Interpretation
25% of people percieve the maggi product ready to eat, 155 of people
percieve good tohealth, 7% of people percieve it as junk food & 3%
percieve it as tasty/fun eating.
Q 10. Which Maggi products in noodles category do you regularly
buy?(Repositioning Awareness)
Maggi masala 25Maggi vegetable atta noodle 10Maggi dal atta noodle 5
Maggi rice noodle mania 8others 2
Interpretation
Out of 50 half of consumer consume maggi masala, 10 consumer
consume maggivegetable atta noodle, 8 consume maggi rice noodle
mania, 5 consumer consume dalatta noodle& remaninig consume other.
So the marketing & sale of maggi masalanoodle is more as compared to
other maggi noodle.
Q 11. Do you perceive maggi noodles as a healthy product?
Yes 35No 15
051015202530m a g gi m a s a l a m a ggi v e ge t a b l e attam a g g i
d a l a t t a m a g g i r i c e o t h e r s

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.
yesno

STP ANALYSIS:

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

TARGET:
Market Targeting refers to evaluating and deciding from amongst
thevarious alternatives, which segment can be satisfied best by the
[Link] 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
targetmarket. The goal of positioning is to locate the brand in the minds
of consumers to maximise the potential benefit to the firm. Maggi has
positioneditself in the SNACKS category and not in the meal category
since Indians donot consider noodles as a proper food item. Therefore
Maggi have developedits brand image of instant food products with
positioning statements such as
―2 minutes noodles ‖

and ―Easy to cook, good to eat‖.

SWOT ANAYSIS:

STRENGTH:

Established Family Brand.

Strong Global Corporate Brand(NIL).

Specialization in food processing category marketing and distribution

inurban market.

Presence of other product segments of food category: dairy

product,chocolate, infant foods.

Pioneer and leader so mover advantage in Noodles, Sauces,

Ketchupsand Soup market.
Nestle symbolization of warm, family & shelter.

Research and development division in India.

New Noodles plant in Uttranchal.

WEAKNESS:

Generic brand to Noodles in India.

Low rural market presences constraints.

Uniform brand for all food category.

Brand proliferation.

OPPURTUNITIES:

Growing package and canned food market in India by15% annually.

High brand awareness of Indian consumers.

Other product category like Biscuits, Chips and ready to eat market
stillunexplored.

Opportunities to be substitute to other snacks category of foodproducts.

THREATS:

Competitors with long history in product category Internationally

like,Heinz sauce and Ketchups of Heinz Indian, Top Ramen in
Noodlesand Knorr soups.

Single product focused competitors like Heinz sauce and Wai

WaiNoodles.

Less entry barriers in the market segment for product category.

ITC‘s strong base in Indian market.

Substitute product to product segment.

CHAPTER
–
4CONCLUSION & RECOMENDATIONSCONCLUSION:
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 thushighlighting huge potential for expansion and growth.
Traditionally, Indians believe inconsuming fresh stuff rather than
packaged or frozen, but the trend is changing andthe new fast food
generation is slowly [Link] on the success of noodles, Nestle
India, tried to make extensions of theMaggi 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 changedthe formulation of its tastemaker, the ominous packet
that came along with MaggiNoodles, a major chunk of consumers were
put-off and sales started dropping. Also,
Maggi‘s competitor ‗TopRamen‘ took advantage of the situation and started a
parallel
aggressive campaign to eat into Maggi‘s market share. But the company
quickly realised this and went back into making the original formula
coupled with afree sampling campaign. This helped Maggi to win back
its lost consumers andpushed up its sales volumes again!

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

withpopulation 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

mediacommercials) with a brand ambassador or mascot
ANNEXURE
QUESIONNAIRE
Q 1. What product would you associate with the tag line mentioned
below?

Its different……………………………………………….

Don‘t be a noodle, be a snoodle…………………………………………

2 minute noodles/bas 2 minute…………………………………………

Jitna tasty,
utna healthy……………………………………………

Mummy bhook lagi h……………………………………………

Try it with a twist…………………………………………..

Hearty soup warm you from inside………………………………………….

Fast to cook, good to eat………………………………………………..

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

Noodles

Fast Food
Snacks

None of these
Q 3. What is the brand that comes to your mind when we say the
word noodles?

Maggi

Top Ramen

Wai Wai Noodles

Anil Noodles
Q 4. Rank the following Maggi products w.r.t frequenct of purchase
with beingthe 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 yourimportance:

Chocolates _____

Salted potato chips ____

Fruit juices ____

Processed foods(ready to use pastes and masalas) ____

Others(please mention) ________________

Q 8. How do you rate Maggi brand in terms of following
parametersQ 9. How do you perceive Maggi products?

Good to health

Ready to eat

Junk food

Tasty/fun eating
Q 10. Which Maggi products in noodles category do you regularly
buy?(Repositioning Awareness)

Maggi masala

Maggi vegetable atta noodles

Maggi dal atta noodles

Maggi rice noodle mania

Others

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

Yes

No
BIBILOGRAPHY

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

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

&Co.,2010.

WEB SITES:
[Link]
2 [Link]
Final [Link]
Case-
Analysis [Link] [Link]
aggi
[Link]