TOPIC

RESEARCH METHODOLOGY
ON
A STUDY ON NESTLE PRODUCT MAGGI

INDEX
Sr. No.

Topic

EXECUTIVE SUMMARY

INTRODUCTION

MAGGIE BRAND IN INDIA

WHY SPECIFIC BRAND POSITIONING?

MAGGIE BRND EXTENTION

PRICE AND PRODUCT DEVELOPMENT

PRODUCT VARIENTS

MARKET SHARE

RESEARCH METHODOLOGY

10

ARTICLE OF ECONOMICS TIMES

10

SURVEY RESULTS

11

HYPOTHESIS & FINDINGS

12

SWOT ANALYSIS

13

STPD ANANYSIS

14

CONCLUSION

15

QUESTIONNAIRE

16

BIBLOGRAPHY

Page No.

EXECUTIVE SUMMARY
The report entitled A research done on of Maggi Brand deals with the study of
Maggi brand that was launched in India in the year 1983, by Nestle India Limited, which became
synonymous with noodles. This research paper tries to find a solution to a real life problem of
Maggi to launch its products as a Healthy Product. The introduction provides the company
background, operational & other important information provided by the company which would
assist in taking the decision for the right brand extension strategy for Maggi.

INTRODUCTION
The industrial revolution in Switzerland in the late 1800s created factory jobs for women,
who were therefore left with very little time to prepare meals. This wide spread problem grew to
be an object of intense study by the Swiss Public Welfare Society. As a part of its activities, the
Society asked Julius Maggi miller to create a vegetable food product that would be quick to
prepare and easy to digest. Born on October 9, 1846 in Frauenfeld, Switzerland, Julius Michael
Johannes Maggi was the oldest son of an immigrant from Italy who took Swiss citizenship. Julius
Maggi became a miller and took on the reputation as an inventive and capable businessman. In
1863, Julius Maggi came up with a formula to bring added taste to meals. Soon after he was
commissioned by the Swiss Public Welfare Society, he came up with two instant pea soups and a
bean soup - the first launch of the Maggi brand of instant foods in 1882 - 83. Towards the end of
the century, Maggi & Company was producing not just powdered soups, but bouillon cubes,
sauces and other flavourings. The Maggi Company merged with Nestl in 1947. Today, Maggi is a
leading culinary brand and part of the NESTL family of fine foods and beverages. Under the
Maggi brand, which is today known worldwide for quality and innovation, Nestle offers a whole
range of products, such as packaged soups, frozen meals, prepared sauces and flavourings.

MAGGI BRAND IN INDIA

Maggi Comes to India teething troubles Maggi noodles was launched in India in the
early1980s. Carlo M. Donati, the present Chairman and Managing Director of Nestle India Ltd,
brought the instant noodle brand to India during his short stint here in the early eighties. At that
time, there was no direct competition. The first competition came from the ready-to-eat snack
segment which included snacks like samosas, biscuits or maybe peanuts, that were usually the
bought out type. The second competition came from the homemade snacks like paratha or
sandwiches. So there were no specific buy and make snack! Moreover both competitors had
certain drawbacks in comparison. Snacks like samosas are usually bought out, and outside food is
generally considered unhygienic and unhealthy. The other competitor, homemade snacks
overcame both these problems but had the disadvantage of extended preparation time at home.
Maggi was positioned as the only hygienic homemade snack! Despite this, Nestl faced difficulties
with their sales after the initial phase. The reason being, the positioning of the product with the
wrong target group. Nestle had positioned Maggi as a convenience food product aimed at the
target group of working women who hardly found any time for cooking. Unfortunately this could
not hold the product for very long. In the course of many market researches and surveys, the firm
found that children were the biggest consumers of Maggi noodles. Quickly they repositioned it
towards the kids segment with various tools of sales promotion like colour pencils, sketch pens,
fun books, Maggi clubs which worked wonders for the brand.

WHY THE SPECIFIC BRAND POSITIONING?

Maggi was positioned as 2-minute noodles with a punch line that said Fast to cook!
Good to eat! And this gave the implied understanding to the consumer that it was a between
meals snack. The company could have easily positioned the product as a meal, either lunch or
dinner. But, it chose not to do so, because the Indian consumer mindset did not accept anything
other than rice or roti as a meal. Hence trying to substitute it with noodles would have been futile.
The firm did not position it as a ready-to-eat meal either, as the housewife prefers to make a
meal for her kids rather than buy it for them. And if she can make it in two minutes with very little
effort, then obviously its a hit with her! Whats more, if kids also love the taste, the product is as
good as sold! So the 2-minute funda coupled with the yummy taste worked!

BRAND STORY
Launched in 5 flavours initially Masala, chicken, Capsicum, sweet & sour, and Lasagna
Maggi had to fight hard to be accepted by Indian consumers with their hard-to-change eating
habits. The packaged food market was very small at this time; Nestle had to promote noodles as a
concept, before it could promote Maggi as a brand. It therefore devised a two-pronged strategy to
attract mothers on the convenience plank and lure kids on the fun plank. Gradually, the market
for instant noodles began to grow. The company also decided to focus on promotions to increase
the brand awareness. In the initial years, Nestle promotional activities for Maggi included schemes
offering gifts (such as toys and utensils) in return for empty noodles pack.
According to analysis the focus on promotion turned out to be the single largest factor
responsible for Maggis rapid acceptance. Nestle\s Managers utilized promotions as measured to
meet their sales target. Gradually, sales promotion became a crutch for Maggi noodles sales. Later
many of the Maggis extensions also made considerable use of promotional schemes. The focus of
all Maggis extensions was more on below the line activities rather than direct communication. In
addition to promotional activities, Maggi associated itself with main stream television programme
and advertised heavily on kids programme and channels. After its advertisements with taglines like
mummy bhookh lagi hai, bas do minute and fast to cook good to eat Maggis popularity became
highly attributed to its extremely high appeal to children. As a result, Maggis annual growth
reportedly touched 15% during its initial years.

MAGGIS BRAND EXTENSION

In 1998, Nestle launched Maggis first brand extension, Maggi soup. At this stage, there was no
organized packaged soup market in India. Nestle planned to create a market 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 Maggis 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 the total yearly expenditure
on the Maggi brand. However, the product failed to generate the desired sales volume and Nestle
was forced to withdraw it. At the end of the year, Maggi noodles were generating sales volume of
around 5000 tons and remained a loss making proposition for Nestle. To boost sales, Nestle
decided to reduce the price of Maggi noodles. This was made possible by using thinner and
cheaper packaging material, the company also introduced money saver multi packs in the form
of 2-in-1 pack and 4-in-1 packs. As a result volume increases phenomenally to 9700 tonnes in
1994 and further to 13000 tonnes in 1995. Maggis euphoria was, however, short lived, as sales
stagnated in 1995 at the previous years level. With soup business being threatened by a new
entrant Knorr soups launched in 1995, offering 10 flavours against Maggis 4 the company
started rethinking its strategies towards the soup market. In order to stretch Maggis brand to
include Indian ethnic foods the company tied up with a Pune based cordial foods to launch pickles
under the year 1995. The company also tied up with Indian foods fermentation (IFF), a Chennai
based Food Company to market popular south Indian food preparation such as sambher, dosa, vada
and spices in consumer packs in Dec 1995. The company reportedly saw a lot of untabbed
potential in the market for ready to use south Indian market.
In 1996, products from these two ventures received lukewarm response from the market;
sales were rather poor in the regions in which they were launched. Analysts attributed the failure of
these Maggi extensions to the fact that Nestl seemed to be particularly bad at dealing with
traditional Indian product categories. Maggi noodles performed badly in 1996. Despite slow sales
in the previous two years, Nestl had set a sales target of 25,000 tonnes for the year. However,
Maggi couldnt cross even 14,000 tonnes. Adding to the company woes was the failure of Maggi
Tonights 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
pizzas.
Understanding these failures, and buoyed by the fact that the Maggi brand finally broke even in
1997, Nestl continued to explore new options for leveraging on the brand equity of Maggi
noodles. The company realized that the kids who had grown up on Maggi noodles had become
teenagers by the late 1990s. As they associated the product with their childhood, they seemed to be
moving away from it. To lure back these customers and to explore new product avenues, Nestl
launched Maggi Macaroni in July 1997. According to analysts, Maggi Macaroni was launched
partly to deal with the growing popularity of competing noodles brand Top Ramen. Maggi
Macaroni was made available in three flavours, Tomato, Chicken, and Masala. The company
expected to repeat the success of Maggi noodles with Maggi Macaroni. As with most of its product
launches, Maggi Macaronis launch was backed by a multi-media advertisement campaign
including radio, television, outdoors and print media with the tagline, Tum Roz Baby. The

products pricing, however, proved to be a major hurdle. A 75-gm Maggi Macaroni pack was
priced at Rs 11, while a 100-gm noodles pack was available at Rs 9. According to analysts, Nestl
failed to justify this price-value anomaly to customers, who failed to see any noted value addition
in Maggi Macaroni (packaging and flavour variants were similar to those of Maggi noodles). In
addition, customers failed to see any significant difference between Maggi Macaroni and the much
cheaper macaroni that was sold by the unorganized sector players. The biggest problem however
was the taste of the new product. Since macaroni is thicker than noodles, Maggi Macaroni did not
absorb the tastemaker well and consequently did not taste very good. The interest generated by the
novelty of the product soon died out and sales began tapering off. Eventually, Nestl had to
withdraw Maggi Macaroni completely from the market.
Nestl had not even recovered from Macaronis 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 were turning out to the rare
successful extensions of Maggi. These products were supported by a popular advertisement
campaign for the Maggi Hot & Sweet sauce brand. These humorous advertisements, featuring
actors Pankaj Kapoor and Javed Jafri, used the tagline, Its different. However, during mid-1997,
HLL began promoting its Kissan range of sauces aggressively and launched various innovative
variants in the category. Nestl responded with a higher thrust on advertising and different size
packs at different 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 retail price. By early 1997, the
price of a single pack had reached Rs 10. Volumes were still languishing between 13,000-14,000
tonnes.

PRICING AND PRODUCT DEVELOPMENT

It was at this point in time that Nestl decided to change the formulation of Maggi noodles. 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-processing technology, so that it could air-dry instead
of oil-fry the noodles. The tastemakers manufacturing process was also altered. As a result of the
above initiatives, costs reportedly came down by 12-14%. To cook the new product, consumers
had to add two cups of water instead of one-and-a-half cups. The taste of the noodles was
significantly different from what it used to be. The customer backlash that followed the launch of
the new noodles took Nestl by surprise. With volumes declining and customer complaints
increasing, the company began to work on plans to prelaunch old Maggi to win back customers.
In addition, in 1998, Nestl began working out a strategy to regain Maggis 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 only thicker in consistency than those produced
earlier, the pricing was also kept competitive and the packaging was made much more attractive.
However, Knorr took Nestl by surprise by launching one-serving soup sachets priced as low as Rs
4. HLL too launched two-serving sachets of Kissan soup priced at Rs 7. As Maggi did not have
any offerings in this price-range, it lost a huge portion of its market share to Knorr.
The
prelaunch prompted market observers to compare Nestls move with US soft drinks major CocaColas New Coke fiasco. However, the company disagreed, Its a hard-5 nosed strategy that
mixes nostalgia with the consumers voiced preference for the product it has been bred and rough
up on. The reintroduction is Nestls acknowledgement of the loyalty of the Indian mother and the
child to the original product. By May 1999, Nestls decision to bring back the old Maggi
seemed to have paid off. Two months after the prelaunch, the monthly average sales of Maggi
noodles n the northern region rose 50% in comparison to the previous year. In July 1999, Maggi
the brand, was promoted as the biggest brand in Nestls portfolio of brands in India, overtaking
brands such as Nestum and Cerelac. Nestl believed that Maggi had immense potential as it was a
very flexible brand under which regional variants could be introduced to meet various market
needs. Company sources claimed that with reasonable price points and innovative products, Maggi
could emerge as a top brand and a major growth driver for the company. To further support the
brand, Nestl carried out 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, Nestl
claimed to have cornered an 81% market share of the 20,000 tonnes noodles market by the end of
1999.

PRODUCT VARIENTS
The product mix of Maggi is divided into various categories defined below. The company has
launched various products under each category as mentioned below.

1. Noodles
Maggi 2-Minute Noodle ( Masala , Chicken, Curry
and Tomato)
Maggi Dal Atta Noodles ( Sambhar taste)
Vegetable Atta Maggi Noodles
Maggi Rice Noodles (Lemon Masala, Chilly Chow
and Shahi Pulao)

Maggi Cuppa mania (Masala yo, Chilli chow yo)

2. Sauces
Teekha masala
Tomoto chatpat
Imli khata mitha
Tomato ketchup
Hot and sweet
Tomato pudina
Ginger, Garlic & Coriander
Maggi Oriental Chilli Garlic
Ginger, Garlic & Coriander
3. Maggi Pichko
4. Soups Healthy
Chef Style
- Cream Mushroom
- Sweet Sour Tomato Noodles
- Tangy Tomato Vegetables
Home Style
- Creamy Chicken
- Mixed Vegetable
- Rich Tomato

Chinese Style
- Chinese Hot Sour Chicken
- Chinese Sweet Corn Chicken
- Chinese Sweet Corn Vegetables
- Chinese Hot & Sour Vegetables

5. Maggi soup sanjivni

Amla
Badam
Spinach
Dal
Tomato
6. Maggi bhuna masala
Bhuna masala for gravy dishes
Bhuna masala for vegetable dal
7.Maggi magic cubes
Chicken
Vegetarian masala

MARKET SHARE

Maggi's Market Share in Ketchup Category

45%
55%

Maggi

Others

Maggi's Market Share in Noodles Category

20%

Maggi

80%
Others

RESEARCH METHODOLOGY

OBJECTIVES
To understand the influence of Maggi as a brand on consumers mind set.
Sources of Brand equity of Maggi like Brand awareness, Brand image, Brand association,
Brand recall
To understand the Brand performance of Maggi products.
To understand Brand Imagery, Brand Quality perceived by customers, Brand credibility,
consideration, superiority and feelings.
Brand Extension of Maggi in terms of product diversity.
Analyse the repositioning of Maggi brand as a Healthy product and the consumers
perseverance towards the same.

RESEARCH PLAN
Research Design:
The research will be carried out in the form of a survey which will be done in areas near to Delhi
(NCR region). The population has been segmented on the basis of salary Group and Age Group.

Sample Design:
The target population for our study is households. The sample will be selected by a simple random
sampling method.

SAMPLE SIZE
The sampling unit is 150 which are divided as follows:
Number
of
respondents
Age-group
Monthly Household
Income
Survey Locations

150
10 - 45
25000 - 75000 INR
Mumbai, Thane etc.

Salary Group
No income
Number of Respondents

25K
40K
30

Age Group
Number of Respondents

10 - 25
50

- 40K
60K
50
25 - 35
50

- 60K
75K
70
35 45
50

DATA COLLECTION PLAN

Data Gathering:
This study involves data collection (primary research) from different households in two different
areas Mumbai, Thane.
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
Mumbai and nearby areas where the responses of consumers would be recorded through a
designed questionair.Secondary research would include various aspects of Brand management
through Internet , Journals, company reports , expert views etc.

ECONOMICS TIMES
INDIANS EAT MOST MAGGI NOODLES IN THE WORLD
"India has emerged as the largest consumer of Maggi noodles across all Nestle operations in the
world," Donati told ET.
It was Donati who brought the instant noodle brand to the country during his short stint in the early
1980s. Maggi went on to create a whole new product category and caught the fancy of kids across
the country in no time.
Today, while India tops in world-wide Maggi sales, the latter has grown to an estimated Rs
160-170 crore brand contributing as much as 8-9% to Nestle India's top line. Maggi noodles sell in
most Asian countries, Australia and Africa.
However, FMCG analysts are not impressed. They say Maggi has done little to expand the noodles
category per se. "Nestls investment on Maggi has been squarely disproportionate to the growth
of the brand," Mumbai-based equity research firm ASK Raymond James senior vice-president
(research) Nikhil Vora said.
Today, after 20 years of flogging the Maggi brand, the size of instant noodles market is a
small Rs 200 crore. Yet, most analysts agree that Nestle India has done well to leverage the brand
to enter a large number of culinary products.
Just for the record, "In 10 years, I want to sell two and a half times of what I am selling today,"
said Donati. So, the learning curve is shrinking.
Launched in early 1980s, Maggi was positioned on the convenience plank which yielded good
results.
Looking at the success of noodles, Nestle India decided to extend the brand to a number of
products such as sauces, soups, pickles and macaroni in mid-1990s. Maggi macaroni bombed and
pickles didn't do well either. Maggi soups and sauces chugged along and today have a decent
presence in the market.
Maggi noodles' acceptance among Indian consumers didn't come easy. Nestle changed its
formulation some time back which was rejected by the consumer. So, the company had to revert to
the original make. Since then, it has been a smooth sailing for the brand.
Interestingly, it is only now, during Donati's second stint, in the country that the brand has
stabilized. "Maggi noodles have seen a robust double-digit growth in sales during the last four
years," said Donati. Last year, Nestle India launched Chinese Noodles as a snack food for the
adults.

METHOLODOGY
The research will be carried out in the form of a survey. This will include primary research in
addition to secondary research as stated below. The survey research method will be descriptive
research design. Each respondent will be interviewed through a Questionnaire. The sample will be
selected by a simple random sampling method.
The survey will address the following information area:
Information Areas:
The objective as spelt out can be elaborated into specific information areas to be studied.
How do customers perceive Maggi as a stable brand, their perception of noodles and how
do they associate themselves with Maggi?
Are the consumers aware of Maggi Brand or they associate noodles with some other brand?
Do they consider noodle as a healthy product or they are aware of the companys strategy
of repositioning it to a healthy product by the launch of some of the new products?
Which product from the entire basket of Maggi products do the consumers consider as the
best selling product for Maggi and to which the consumers frequently buy?
Are the consumers willing to accept Maggi brand extensions to some other products like
chocolate, juices, chips etc?

SURVEY RESULTS
Brand Associations
Sources of Brand equity like brand association of Maggi as a Brand was found highest with the age
group of 10-25 and the product category associated with it was the noodles category (see exhibit
1). Consumers in the age segment of 10-25 could easily relate Maggi to noodles.
In the income wise category the brand association was highest with the income group of 25k-40k
were more than 40 respondents associated Maggi with noodles (see exhibit 2). The implications
from the findings discussed above seem that Maggi has good brand association in terms of
noodles. Consumers presume Maggi as Noodles and the companys philosophy of projecting the
brand as noodles brand seem to be viable in this regard.

Brand Association(Agewise)
40
35
30
25

10yr - 25yr

20

25yr - 35yr

15

35yr - 45yr

10
5
0
Noodles

Fast Food

Snacks

Exhibit 1

None of These

Brand Association(Incomewise)
45
40
35
30

Noodles

25

Fast Food

20

Snaks

15

None of These

10
5
0

Exhibit 2
No Income

25K - 40K

40K - 60K

60K - 75K

BRAND RECALL
From the Exhibit 3 & 4 given below it seems a clear trend that Maggi has a good brand recall as
compared to its competitors like Top Ramen, Surya noodles etc. Consumers could easily associate
Maggi with noodles. In the Age wise category, the respondents of the age group of 25-45 were
highly cautious of Maggi brand and seemed to be consuming Maggi more as compared to other
age segments.

Brand Recall(Agewise)
45
40
35
30
25
20
15
10
5
0

10yr - 25yr
25yr - 35yr
35yr - 45yr

Maggi

Top Ramen

Surya
Noodles

Exhibit 3

Anil Noodles

Brand Recall(Incomwise)
45
40
35
30

Maggi

25

Top Ramen

20

Surya Noodles

15

Anil Noodles

10

BRAND RECALL (GENDER WISE)

5

0 gender wise category the companys strategy of positioning of Maggi brand for working
In the
No Income
25K - 40K
40K - 60K
- 75K respondents had a brand recall more
women seems
to be adaptive
and gaining
shape as 60K
women
than male.

Brand Recall(Genderwise)
25
20
15

Maggi
Top Ramen

10

Surya Noodles
Anil Noodles

5
0
Male

Female

No Income

Male

Female

25K - 40K

Male

Female

40K - 60K

Male

Female

60K - 75K

BRAND AWARENESS
From the responses of the respondents in the conducted survey it was evident than Maggis Brand
awareness was very high in terms of noodles were around 65 %of the respondents associated magi
as noodles and only 20 % of the respondents knew ,Maggi as a Ketchup, 9% as soup etc.

Brand Awareness
Soup Masala Ketchup
6%
9%
20%

Noodles
65%

The trend indicated that Maggis brand extension strategy to increase its basket has not been quite
successful in other food segments .This might be because of the larger share of market captured by
the competitors hence Maggi has a high potential in markets like ketchup, soups etc.

Brand Awareness(Agewise)
40
35
30
25

10yr - 25yr

20

25yr - 35yr

15

35yr - 45yr

10
5
0
Ketchup

Noodles

Soup

Masala

REPOSITIONING MAGGI AS A HEALTHY

PRODUCT
The companys strategy to reposition Maggi as a Healthy product was not found conducive as
per the survey results. The survey showed that consumers did not perceived Maggi as a healthy
product with 53% of them consumed Maggis traditional products as compared to the rest who
consumed other variants of Maggis brand that were positioned as Healthy products.

Repositioning Awareness
Maggi rice noodles Others
mania
3%
7%
Maggi dal atta
noodles
14%
Maggi masala
(Regular)
53%

PERCEPTION
OF MAGGI PRODUCT
Maggi vegetable
atta noodles
23%

From the pie chart given below it can be clearly seen that Maggi is still perceived as
a non healthy products by the consumers and in spite of the efforts to position Maggi
as a healthy product by the company the brand is still perceived as a ready to eat
food brand that has a high market share in the noodle category in India.

HYPOTHESIS DONE FOR MAGGI NOODLES

Quick food styles are catching up fast because of more number of working couples,
domestic fuel crisis, non availability of reliable domestic servants and breaking up of joint family
system. Neither time nor patience to prepare the ingredients and wholesome food in the house
itself, the high price of ingredients and ready mix are also a significant factor responsible for the
spectacular increase in the demand for maggi noodles products.
HYPOTHESIS
1. There is no significant relationship between the impact of media and purchase decision.
2. There is no significant relationship between influencers and purchase decision.
3. There is no significant relationship between preference for more new varieties and
Purchase decision.
4. There is no significant relationship between quality of noodles and purchase

decision.

METHODOLOGY
The study is based on primary data. The data were collected through interview method by
using a structured questionnaire. For the purpose of the study the data have been collected in
different places of the market especially in retail shops. One hundred and twenty five nestle maggi
noodles customers were randomly selected for the study as sample.
Necessary data have also been collected from sources like books, magazines and internet. Chisquare test has been applied for testing the hypotheses.

FINDINGS
1. 32 percent of the respondents prefer maggi 2-minute noodles.
2. Vast majority (85 percent) of the respondents have tasted all brands of nestle

Maggi noodles.

3.72 percent of the respondents purchase nestle maggi noodles for its quality with low price.
4.60 percent of the respondents purchase nestle maggi noodles whenever needed.
5. Television advertisements are a major factor in purchase decision compared to other Medias.
6. The foremost influencer in purchase decision of the respondents is children.
7. 60 percent of the respondents were expecting new varieties of maggi noodles from
Nestle.
8. 38 percent of the respondents wanted a change in the quantity of present brands. The
respondents want small quantity packets.
9. 50 percent of the respondents feel that the advertisements are good.
10. 44 percent of the respondents feel that prices are cheap.
11. 49 percent of the respondents are moderately satisfied with the quality of nestle Maggi noodles.
12. Majority (68 percent) of the respondents consider that the packing is attractive.
13. Higher percentage (60) of the respondents is awareness on contents/ ingredients

SWOT ANALYSIS OF MAGGI

The SWOT analysis of Maggi brand clearly indicates the strengths of Maggi as a Brand in Indian
market. The Brand was found to be a leader in its category of Noodles, with strong customer
loyalty. Intensive distribution of Maggi as a Brand was seen in urban areas of the country. The
major threats of the brand as shown in the figure below indicates that Maggi has made several
attempts to revamp itself as a Healthy Product but till date its perseverance towards the tag line is
low by the consumers. The brand is in the growth stage of product life cycle with a strong
inclination towards the maturity stage.
STRENGTH
Market leader in their segment
Strong brand loyal consumer base
Wide range of distribution
channel
Product according to the need of
Indian consumer
Innovative Product

WEAKNESS
Product are dependent on each
other
Not so much presence in rural
market

SWOT
ANALYSIS

OPPORTUNITY
Increasing number of working youth
Product has been acceptable in
youth category
Shift to rural market
Changing preference of consumer
towards Chinese food and fast food.
Can foray into other food markets
with its strong Brand name

THREAT
Price war with competitors.
Strong presence of regional
competitors
Consumers dont perceive it
as a Healthy Product

STPD ANALYSIS OF MAGGI BRAND

Segmentation: Market Segmentation divides the heterogeneous market into homogenous groups
of customers who share a similar set of needs/wants and could be satisfied by specific products.
Maggi Brand has segmented the market on the basis of 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 conveniencesavvy time misers who would like to get something instant and be over with it quickly.
Positioning: Market Positioning is the act of designing the companys 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.
Differentiations: Points-of-difference (PODs) are attributes or benefits consumers strongly
associate with a brand, positively evaluate and believe they could not find to the same extent with
a competitive brand. The Maggi Brand has also differentiated its brand image from its competitors
in terms of taste, flavours and packaging. Maggi have launched wide varieties of products in
different flavours which can attract larger set of customers. Maggi products are also available in
different sizes catering to different customer needs.

CUSTOMER BASED BRAND EQUITY PYRAMID

(CBBE)
Maggis customer based brand equity pyramid seems to be equally strong on left hand side and
right hand side; it is also strong from bottom to top enjoying the highest brand awareness of any
fast food noodle brand in India as well as repeat purchase rate and high customer loyalty.

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 mid1990s. Unfortunately, the macaroni and pickles didnt 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, Maggis competitor TopRamen took
advantage of the situation and started a parallel aggressive campaign to eat into Maggis 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 Today The year 2008 saw India leading in worldwide Maggi sales. The brand has grown to
an estimated value of Rs 160-170 crore and contributes at least 89% to Nestle Indias 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, the parent company, Nestle India Limited has certainly encouraged the
brand to enter into other culinary products.

RECOMMENDATION
After the conducted study following recommendations could be sited for Maggi Brand.
- To gain maximum leverage in terms of profit the company should pay emphasis on
segments with age groups 25-35 and above .Advertising is the key to success.
Targeting these segments will not only enhance the companys profit margins
but also it will leverage the brand image of Maggi.
- The company should advertise its products by depicting attributes related to Health
like Nutrition values, % of Vitamins, Proteins etc.This would help in customers
perceiving the product as Healthy.
- Foray into other food products like chips, chocolates etc under its sole brand name
would not only help in Brand extension but will also enhance Maggis market
share.
FUTURE PLANS
- Nestl Indias objective is to manufacture and market the companys products in
such a way so as to create value that can be sustained over the long term for
consumers, shareholders, employees and business partners.
- Maggis aims to create value for consumers that can be sustained over the long term
by offering a wide variety of high quality, safe food products at affordable prices.
- The company continuously focuses its efforts to better understand the changing
lifestyles of modern India and anticipate consumer needs in order to provide
convenience, taste, nutrition and wellness through its product offerings.

LIMITATIONS:
The present study is confined to a minimal sample size and may not reflect the opinion or
response of the entire population in general. The results of our study are entirely confined to the
responses of the Delhi consumers and might deviate in terms of actual population as a
whole.Recomendations given after the study are entirely dependent on the survey and the
secondary analysis done in the report.

QUESTIONNAIRE
Q-1 Are you a customer of magi ?
Yes
No
Analysis: This survey suggested that out of 20 customers all are consumers of Maggi products.
Maggi is quite famous with the different types of customers in the market. Our survey took sample
of customer in general.

Q-2 what comes first in your mind when you hear the word Maggi?
Noodles
Fast food
Snacks
None of these
Analysis: The survey suggested that 14 out of 20 consumers associated magi with noodles. 3 for
snacks and masala each. People are familiar with magi as a brand for noodles in majority .

Q-3 what is the brand that comes to your mind when we say the word noodles?
Maggi
Top Ramen
Surya Noodles
Anil Noodles
Analysis: The survey suggested that Maggi is the most popular brand with the customers of
noodles . It suggests that 18 out of 20 consumers associates noodles with magi.

Q-4 Rank the following Maggi products w.r.t. frequency of purchase with 1 being the highest rank
RANK

Noodles
Ketchup
Soup
Pickles
Cubes

_________
_________
_________
_________
_________

Analysis: Most of the consumers have ranked noodles as 1. People purchase Maggi noodles in
majority . The frequency of purchase of magi noodles is very high.
Q-5 With what products would you associate the brand Maggi?
Ketchup
Noodles
Soup
Masala
Analysis: The survey suggested that 12 out of 20 people associated the brand magi with noodles .6
customers associated with masala. 2 consumers associate the brand with soup and 1 with ketchup .

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

Taste
Variety/Flavours
Hygiene/Purity
Availability
Packaging (SKUs)

____________
____________
____________
____________
____________

Analysis: The product of Maggi have been rated well above parameters by most of the customers.

Q-7 Rank the categories which Maggi should look in future in order of your importance :
Chocolates
_____________
Salted Potato Chips
_____________
Fruit Juices
_____________
Processed foods(Ready to use pastes, masala) ____________
Others ( Please mention)
_____________
Analysis: According to the survey ,magi should look for salted potato chips in future as it is
highly demanded by the people in market.

Q-8 how do you rate Maggi brand in terms of following parameters:

Expertise (Competent, Innovative, Market leader)

Trustworthiness (Dependable and keep customers interest in mind)
Liability ( Fun ,interesting)

None of these

Analysis: According to survey , Maggi brand is using expertise strategy to look forward in future .

Q-9 How do you perceive Maggi products?

Good for health.
Ready to eat.
Junk food
Tasty / Fun eating
Analysis: The survey suggest that most of the consumers perceive magi product as being good
for health .

Q-10 Which Maggi products in noodles category do you regularly buy? (Repositioning awareness)
Maggi masala
Maggi vegetable attar noodles
Maggi dal Atta noodles
Maggi rice noodles mania
Others
Analysis: The survey suggest that most of the consumers regularly buy magi vegetables Atta
noodles while few of them preferred magi masala noodles.

Q-11 Do you perceive Maggi noodles as a healthy product?

Yes
No
Analysis: According to survey Maggie is perceived as a healthy product for most of the
consumers.

Q-12 If No then your suggestions for improvement as a healthy product?

Analysis: The survey suggest that 20 out of 20 consumers perceive maggi noodles as a healthy
product and need no improvements as a healthy product.

BIBLOGRAPHY

www.google.com

www.wikipedia.com