MINOR PROJCET REPORT

ON

Revival of brand image: A CASE STUDY OF MAGGI

Submitted in Partial Fulfilment for the award of the degree of bachelor of

business administration

(2021-2024)

SUBMITTED TO :- SUBMITTEDBY:

Mr.Yashkant Teotia Deepanshu

ASSISTANT PROFFESOR BBA(G)(II SEMESTER )

DEPARTMENT OF BUSINESS ROLL N0-
36321201721

MAHARAJA SURAJMAL INSTITUE

RECOGNISED BY UCG u/s 2(f)

AFLIATED TO GURU GOBIND INDRAPRASTHA UNIVERSITY

C-4, JANAK PURI

 ACKNOWLEDGEMENT

Every successful work is not completed without the help and support of the
people around us. A success is shared by not an individual but in fact by the
people who constantly help him and guide him in his work. Through this I want
to express my gratitude towards all those who have directly or indirectly
contributed in my journey.

I am greatly thankful to Mr. Yashkant Teotia, Professor, MSI Janakpuri who as

my guide was a constant source of inspiration and encouragement to me. The
strong interest evinced by her has helped me in dealing with the problems I
faced during the course of project work.

I would like to thank my entire beloved family & friends for their constant
support and also to our faculty for their ever inspiring guidance about the
summer training.

DEEPANSHU
 CERTIFICATE OF COMPLETION

This is to certify that Deepanshu, 36321201721, pursuing BBA (General) from

Maharaja SurajmalInstitute,Janakpurihas successfully completed the research
project on “Revival of brand image:A case study of maggi” under my
supervision and guidance.

He has taken care of all necessary aspects and has shown keen interest and
utmost sincerity during the completion of this project file.

I certify that this project file is up to my satisfaction and as per the

guidelines laid down by the Guru Gobind Singh Indraprastha

University.

Mr. Yashkant Teotia

 CONTENT

S.no Description Page no.

1. Acknowledgement
2. Certificate of Completion
3. Executive Summary 4
4. Chapter 1-Introduction- 5-18

 Objectives of the study

 Literature review
 Research Methodology
 Scope of the study
 Limitations
5. Controversy and revival 18-23

6. Chapter 2- Overview of industry as a whole 23-36

7 Chapter 3-Profile of the organisation 36-44
8 Chapter 4- Analysis and interpretation 44-48
9 Chapter 5- conclusions and recommendations 48-49
10 Bibliography 50-51
 EXECUTIVE SUMMARY
The report entitled ‘MAGGI- A PROJECT REPORT deals with the study of
nestle as a brand which acquired maggi in 1947 and launched it in india in1983
as an evening snack which became synonymous with noodles. This study tries
to analyse the marketing strategy of maggi before and after controversy and
how post dropping significant market share during the ban,they were able to
smoothly regain the market share within a few months of re-launch.

The introduction provides the company background (NESTLE), Maggi launch

in India,its competitors,there initial marketing strategy for maggie,the
controversy that cost them their market share and position as market leaders,and
how they adopted emotional marketing strategies to reconnect with mothers and
youngsters to re-launch the product in the market.
INTRODUCTION

For more than a century, Maggi has been helping cooks around the world to
prepare fresh food they love. Every time you wonder what you should
cook, Maggi has the answer.

In India and Malaysia, Maggi instant noodles are very popular; Nestle have
39% ofthe market in Malaysia, where "Maggi" is synonymous with instant
noodles; and a60% share in India where it was the first instant noodle
brand. In Malaysia, friednoodles made from Maggi noodles are called Maggi
Goring.

With Maggi you can cook the best meal for you and your loved ones, using a
range of products that add greater flavor to everyday favorites – bringing out the
best in fresh ingredients to deliver great taste in a simple way.

Brand MAGGI has started “Simply Good” initiative, in line with Nestlé’s global
commitment which is firmly embedded in our Purpose and Values which is to
enhance quality of life and contribute to a healthier future.
In India the ‘Simply Good’ journey has started with everyone’s
favourite MAGGI 2-Minute Masala Noodles fortified with iron which will
now provide consumers 15% of their daily Iron requirement.

Iron deficiency is one of the leading micronutrient deficiencies in our country.

Not many people are aware of how stark the problem is but as per National
Family Health Survey, 2015-16 more than half the women and children in India
are iron deficient. Contrary to popular belief that iron deficiency is prevalent
only in rural parts of the country we see that the issue is equally spread across
urban and rural geographies

MAGGI Noodles is a part of about 70% urban Indian households and with more
than 2.5 Bio serves that are consumed by people every year (2x Indian
population) it can be an ideal carrier for iron fortification and thus contribute to
closing the gap of Iron deficiency.

With this objective we have added Goodness of Iron in every pack of MAGGI
2-Minute Masala Noodles. We have also set up a helpline number for our
consumers where they can receive all necessary information about significance
of iron and iron rich foods which they should incorporate in their diet.

Nestle India Limited is that Indian subsidiary of the global FMCG major Nestle
India limited introduced maggi brand to the Indian consumers with the launch
of Maggie 2 minute noodles an instant food product in 1982 with the launch of
maggi noodles the slender limited create an entirely new food category instant
noodles in the Indian packaged food market Nestle which word knows as
cautious and Conservatory company is a Swiss United 140 years old
multinational.

The man at the helm is Swiss national Carlo DonatiN all inspiration and image
of the company his philosophy is waterline dictating top line based on
delegation and decentralisation it resulted from a merger in 19 05 between the
Anglo Swiss milk company for milk products established in 1866 by the page
brothers in Cham Switzerland and the farine lactee henri Company set up in
1867 buy handy Nestle to provide an infant food product Nestle India’s business
objective and that of its management and employees to manufacture and market
the company’s products in such a way at as to create value that can be sustained
over the long term for consumers shareholders employees business partners the
product mix off.

1983 was a special year for India. India won the cricket world cup against
Mighty West Indies. 1983 became more special because Maggi was launched in
India. Initially, Maggi did not get popular in India. Indians preferred rice and
chapati over Maggi. Nestle India invested 100 crores over advertisement
without any major success.

Nestle understood that it is difficult to change centuries-old food habits. The

company presented Maggi Noodles as evening snake time food.

Children come back home in the evening time from school and are hungry.
They want to eat something. Women choose Maggi Noodles and it made
children happy. Over the years, it became an unavoidable habit. Slowly, Maggi
found a place in Indian Kitchens. Urban Indians started liking the product
because of its 2 minutes of readiness.

Maggi also got the first-mover advantage. There was no competition for the
noodles brand. Maggi focussed moreover consumer behaviour. After identifying
the popularity of Maggi in children, Nestle focussed on attracting children
instead of targeting women. Other than evening snacks, Maggi was also
advertised as an ‘in-between food’ product.

One of the tv commercials where Child says, “Mom, I am Hungry”, and the
mother replies,” Bas 2 Minute”, became very popular. Distribution of trail packs
in schools and sponsoring one of the popular tv show, “Hum Log”, made Maggi
popular among the masses.

Since 1999, Maggi has found its permanent place in Indian Kitchens.

It was the first ready-to-cook snack/meal that found its way into Indian kitchens
and its journey to get there has certainly been a memorable one. Nestle’s Maggi
noodles is a mammoth brand in India today.

Nestle India consists of milk products and baby products bracket (42.5% )
beverages(29.3%) processed foods(14.4%) chocolate and confectionery
(13.8%)Nestle India plans to expand Business into similar then diversified
product categories within employees 10th of over 3000 and turnover of U.S.
dollar 497 million in 2003 Nestle India is one of the leading companies in the
FMCG space in India the companies acknowledged among India’s most
respected companies and among the top wealth creators of India.

Maggi is an over 100 years old Nestle brand of instant soups stocks ketchups
sauces seasonings and instant noodles it quickly became a pioneer of industrial
food production aiming at the improvement of the nutrition of local families
overtime the scope of Maggie has been extended from a predominantly
dehydrated cooking add brand towards her gentle savoury food brand including
many types of ready meals and also frozen food this is in line with the fact that
people all over the world are cooking less and less from scratch .

Apart from its high content carbs and calorie, there isn’t much benefit that could
be gained from Maggi noodles. Since it’s just another type of instant noodle,
Magi noodles also have similar compound with other brand of instant noodle,
which is high in carbs and Sodium.

Contrary to other type of instant noodle, Maggi actually have a decent amount
of calorie, so it may keeps you out from being hungry a bit longer after you eat.
The carbs it contained could also give you some boost of energy.

About its high amount of Sodium, it may be good for people who have severely
low blood pressure, since Sodium could help risen blood pressure. But it’s still
not recommended to be used as staple foods.

Objectives
 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.

Review of literature
Maggi was new product for the Indian market, new product or we can say an
alien product to be accepted in traditional Indian market is a task, in the paper
Success of New Product Launch by New Process Flow, Deepa, talks about the
importance of the same.

Customer perception of the product plays a major role in consumer buying

behavior, the paper Digital Marketing A Catalyst In Creating Brand Image
Through Customer, Ennala Deepa , talks about how perception creates customer
and then there loyalty.

Impact of service environment for effective customer behavior in Retail

Industry with reference to Heritage super market, Mr. L Komagan and Dr.
Kiran Kumar Thoti Turkish Journal of Computer And Mathematics Education,
retail business has boomed post FDI in India, hence marketing and de-
marketing products In retail business plays a major role.

Brand Loyalty, plays a Vital role and how it works for Brand loyal customers is
a task, reference of brand loyalty has been taken from the Factors Determining
the Role of Brand in Purchase Decision Of Sportswear, Kunal Gaurav
Maggie has raised the bar in the markets by exhibiting itself as an example for
the others. Starting from scratch, the brand has come a long way and has been
serving the people with the best of its products. Every company witnesses
failures and learns from them. Maggie too has faced several ups and downs to
reach at a position that it is at today. Here are some of the major marketing and
promotional strategies that the brand adopted and became successful in serving
the exemplary tastes to the world.

Marketing mix of Maggi

• Product strategy
Maggie is one of the leading food brands under the umbrella of Nestle Maggie
has a wide variety of products and has a variety of engines for each country its
products add majorly categorised into maggi instant noodles sauce maggi soups
and seasonings the instant noodles category has a vast variety and is very
popular all across the globe the major products in this category are two minute
noodles, vegetable multi grain noodles, chicken noodles, oats noodles, hot head
noodles, atta noodles these variants are the backbone of the product strategy in
the maggi marketing mix the maggi soups category has a vast variety of
dehydrated soup mixes and products offered very with countries in India it is
available in tomato Margarita cone with pepper green pea with coriander exact
the maggie's present all across the world where it runs
•Price strategy
Maggie uses a cost based pricing strategy to tap into different markets in the
world the competitive prices are repaired with a high volume of the products
this shows the cost and competition are the major factors in the marketing mix
but a strategy of Maggie because of rising prices in different countries Maggie
has smartly started decreasing the quantity to keep the price unchanged Nestle
strives to capture a high market share with minimum prices and maximum
quality standards as Maggie is trying to tap into all segments of income factors
it keeps differential prices depending on the locations across countries also its
offering is available in absorb variety of packages so that people can buy
according to their needs

• Place and distribution strategy

Maggi products are broadly available due to the strong presence of Nestle the
strategy of distribution followed by Nestle is producers to distributors to
wholesalers to the retailors to consumers this is because it is consumed in a lot
of volume and commonly in small quantities due to its wide reach even into
those areas it has gained at the top position maggi products are taken from the
factories directly which are individually managed to convert forward agency
agencies who then stored in their warehouses and send them to the wholesalers
according to their demanded quantity these quantities are then distributed
among the retailers and other small businesses

PROMOTION OF MAGGI
•They promote their product very effectively through television
• They also sponsor various cookery shows to promote alternate usage of
products
• They also use strategy of free product samples to promote it
• They have applied the strategy of brand extension.

MARKETING CAMPAIGNS OF MAGGI

Nestle India recently launched an inveigle campaign in which Maggi lovers
would get a chance to vote for their special favorite flavor. The new variants by
Maggi such as Tomato, Chatpata, Yummy Caprica, and Desi Cheesy offer
rotation to every enjoyable flavor profit yet manages to fire up the natural sense
of familiarity among the consumers that Maggi has developed through its years
of experience

The Campaign has become even more interesting and exciting when it is
coupled with this chance to vote for the favorite flavor, making the whole
experience inclusive, invigorating as well as energizing. Maggi urges everyone
to enjoy its new variations of flavors and to rate and vote for consumers’ special
favorite ones among them, as Maggi always wishes to give their best to its
customers.

DIGITAL MARKETING STRATEGY OF MAGGI

The Campaign has become even more interesting and exciting when it is
coupled with this chance to vote for the favorite flavor, making the whole
experience inclusive, invigorating as well as energizing. Maggi urges everyone
to enjoy its new variations of flavors and to rate and vote for consumers’ special
favorite ones among them, as Maggi always wishes to give their best to its
customers.

Digital acceleration team of the brand, which was responsible for the Maggi
Campaign
“WE MISS YOU TOO”. It has also set up 24×7 toll-free customer services to
address customer concerns. Maggi had a tie-up with one of the top famous e-
commerce platforms ‘Snapdeal’ and came up with the Maggi welcome kit idea.

TASTES AND PREFERENCES OF CONSUMERS

Health is the flavour of the season. Food companies in India are growing aware
of the increasingly changing consumption trends and taste preferences among
the Indian Junta.No surprises, but this is the reason more and more companies
are coming up with products that are healthy. Take for example coke and Pepsi
both have already started looking into the non carbonated drinks category
section. Maggie first introduced in the market Maggie Atta noodles which it
claimed was a healthy food as it was made of wheat Followed by soups.

Nestle India, in an effort to carry on with its trend of the wedding the Indian
consumers healthy food recently introduced Are the end of healthy soups.
Theentire range consists of the following mega tomato, mixed vegetable, tomato
vegetable, mushroom, chicken, sweet corn chicken and hot and sour vegetable.
The product is priced at rupees 25 for 70 grams.

Maggie became successful because it understood consumers. The brand never

wanted to change Indian consumers habit. It did not had ambitions about
changing Indians breakfast or dinner preferences. What Maggie did was to
slowly attach itself to Indian consumers need without disruption.

Maggie was also closely watching consumer preferences. When consumers

wanted healthy food coma Maggie launched Atta noodle variants that was
healthy.More importantly this move addressed the concerns of homemakers.
The brand extended itself to multiple segment But without diluting the code
brand equity.
Maggie over these years have made a lot of mistakes. It made mistakes because
the brand was willing to experiment. Most importantly the brand learned from
those mistakes and corrected itself.
Maggie also invested heavily in brand building. The campaigns for one of
maggie’s products was always there in the media which kept the brand fresh in
the mind of the consumers. Maggie personifies the basic principles of
understanding consumers, innovating and investing in the brand.

Maggie is 1 packaged food brand that has only seen its popularity grow in the
past many years and the secret to the successes that instead of trying to change
the food habits of consumers, it has tried to align itself with local tastes and
preferences with the ‘Fast to cook and good to eat’Promise.

To commemorate It’s successful just need to work water of a century in the

world's largest consumer market, the brand, last year, launched an innovative
campaign inviting it's loyalists to share with it there Maggie stores and promised
to broadcast them to the world at large, thereby, making them the superstars
overnight. Along with television commercials, which aired individual
consumers stories of dead lasting memories of Maggie, the brand displayed
pictures of these loyal customers on the Maggie packs. Nestle also introduced a
website me and Meri Maggie in for engaging with them.

The company also rewarded its consumers by adding to the Maggie portfolio,
that hitherto Had sauces and soups in various flavours, a range of prepared
dishes and cooking aids such as Maggie bhuna masala and Maggie pasta. So far
focused on urban consumers, the company also made a pitch for rural
consumers By launching Maggie rasile Chow Noodles at an inviting price of
rupees 4. Again, local tastes and recipes Have been at the code of all these
marketing innovations.

“Creating delight and happiness in everyday meals is not just about providing
tasty food. It is about providing taste and health in a convenient combination,”
Says shivani hegde , general manager, foods.
Research Methodology
Qualitative method will be used in the study. Qualitative method strives on
understanding data through giving emphasis on determining people words and
actions.

Secondary source is used for performing research that will include

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

SCOPE
Launched in five flavors 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 foods market was very small
at this point in time.

Nestlé 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's

awareness. In the initial years, Nestlé's promotional activities for Maggi
included schemes offering gifts (such as toys and utensils) in return for empty
noodle packs. According to analysts, the focus on promotions turned out to be
the single largest factor responsible for Maggi's rapid acceptance.

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

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

Controversy and Revival

On June 5 the food safety and standards authority of India had ordered a pan
India ban on the Nestle India’s maggi noodle on the ground that these were
unsafe and hazardous for humans due to the presence of lead allegedly beyond
but missable limits the five month Ban was “one of the biggest crisis” it Nestle
has faced in the 32 year history of the brand of the country
The brand which had been enjoying over 75% of the market share since ages so
the worst days in 2015 with a nationwide ban on its instant noodle product than
tile market with sales of worth rupees 250-300 crore a month went down to 5%
to 10% during the Maggie controversy however it has now recovered to nearly
50% of the original industry sales with nestle being on a recovery management
spree ever since Maggie came back
The instant noodles which accounted for about 30% of Nestle India’s Revenue
in 2014 but pulled from the market starting five June after the country’s food
regulator food safety and standards authority of India ordered the company to
withdraw all nine variants of Maggie calling them unsafe and hazardous for
human consumption it’s seated access led content and traces of mono sodium
glutamate, a flavour enhancer, as reasons.

Current marketing strategy – Maggie after the controversy

Team Maggie begin its crisis management on the communication front with a
three film campaign it used tag lines like Gov apisai geyar miss you, I miss you
yaar come back man, abhi Jo miss you yaar. Here the brand name was not
uttered. At the end of each film, the Maggie logo appears on the screen, along
with the words #we miss you too.

Keeping in touch through increased ad space

After the fiasco of the Maggie ban its parent company Nestle decided to
increase its spending on television commercials leading to a growth of its add
volume to about 96% by September 2015 two months prior to the relaunch of
the famous noodles according to various data estimates the first print
advertisement that accompanied the announcement of the relaunch read “your
Maggie is safe, has always been.”

#Maggie mother
Quite naturally the first add after the maggie relaunch was a mother speaking no
strategically about her child's trust with his favourite noodles thus further
Adding to the emotional value of the customers right there #letyourmomknow

The perfect medium for the launch

Along with increased spending on television add space Maggie was relentless in
its promotions of the upcoming relaunch on social media using the full force of
its high held presence on a platform like Facebook which has about 261,433
likes on it, and an 87700 following on Twitter.

#Nothing like maggi

The series aims to bring back the memories of having Maggie after coming
back from school after the papa’s cooking an hostel video where the brand
brushed up the Maggie memories of couples and hostellers who basically
survived on the snack item it has now taken up the hungry siblings.

Making it exclusive
Like with everything else customers thrive on the feeling of going owning a
product or service exclusively Maggie played its cards smartly when it decided
to take this into account by making a deal with Snapdeal which became the only
platform where Maggie packets were sold before its commercial come back into
the shelves of all stores. this raised it’s demand by a roof and customers were
trying to outbid each other for the ownership of the packets sometimes even
paying more before it went out of stock. the company thus set the stage for
maggie’s official come back into the markets. the registerations for
maggie’sWelcome kit containing 12 packs of Maggie our 2016 Maggie calendar
I may give fridge magnet Maggie postcards end of welcome back later opened
on 9 November the sale began on 12 November on snapdeal.

Last mile customer connect

On ground activation to rapidly connect with not just consumers but also
dhabas, canteens and Street vendors of maggi noodles are the key today. Today
Maggie has covered the Indian market in such a way that even in the most
remote of all locations be any small village even in the most hilly regions there
will always be some roadside shops selling Maggie.

In January 2018, marking 35 years of the presence of the iconic food brand
Maggi in India, its parent company Nestlé India Ltd (NIL) launched a new
marketing campaign aimed at clearing all fears about the safety of the product.
The campaign contained two promotional videos. The first, a proposed
television campaign ‘Kuch Achha Pak Raha Hai’ (something good is cooking),
focused on the changing status of women. The other featured the complete
manufacturing process of Maggi noodles wherein consumers got a view of the
eight stages of making Maggi, from the farm to packaging in retail form.

The new controversy over ‘unhealthy’ food and drinks is unlikely to impact
Nestle India as its portfolio is different from the parent company. It may be
noted that India is one of the few countries where Nestle has a local research
and development facility for a long time

One of the reason is that over 45 per cent of Nestle India’s products comprise
health and nutrition products such as baby food, dairy products and coffee,
which were not classified as “unhealthy” in the internal document

Other prominent products in Nestle India’s portfolio are Maggi Noodles and
chocolates — both of which may be hard to renovate in case they do not meet
the healthy criteria. Even then, the “unhealthy” food portfolio is unlikely to
impact sales of Nestle India products.

Overview of industry as a whole

In 1998 Nestle launched the Maggie’s first brand extension Maggie soup at this
stage there was number organised packaged supermarket in India nicely 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 it
in on the Maggie’s brand name and was never very serious about the Segment
Knorr soups launched in 1995 offering 10s levels against maggie's 4th of the
companies started rethinking its strategies towards the supermarket in order to
stretch maggie’s plan to include Indian ethnic foods the company tried of with a
pune based chordia Foods to launch Pickles under the year 1995 the company
also tired up with Indian food fermentation a chennai based food company to
market popular South Indian food preparation such as sambar, dosa, vada, and
spices in consumer packs in December 1995 the company reportedly saw a lot
of untapped potential in the market for their day to use South Indian market

Nestlé 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‘s launch was backed by a multi-media advertisement campaign

including radio, television, outdoors and print media with the tagline, Tum Roz
Baby.

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, Nestlé had
to withdraw Maggi Macaroni completely from the market.
In the early 2000s, the Nestlé Group had been taking measures to transform
itself into a 'health and wellness' company. The company had also set up new
research and development facilities with a view to improving the attributes of
the existing Nestlé products to make them healthier, and to develop new health
and wellness products. Since the early 2000s, the Nestlé Group had been
introducing 'health and wellness products all over the world.
In India, NIL introduced new 'healthier' weaning and milk products in 2004.In
March 2005, the Maggi brand too took to the health route with the launch
of Vegetable Atta Noodles. NIL made use of the group's extensive research and
development facilities in developing this new 'healthy' product.

To fulfill the 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 Marketing the Noodles
Category.

When Maggi noodles was launched in India it had segmented the based on age
and urban families targeting kids, youth and office goers positioning itself as
fast to cook, 2 minute noodles, with the tagline of “taste bhi, Health bhi”.
Positioning however was not an issue, as no instant noodle had been launched in
India, Maggi was the first one.

In the initial stages, Maggi had high failure rates, frequent product
modifications(to adjust to Indian consumer), high marketing and product cost as
they were trying to build product awareness. With a lot of ups and downs and
high failure rates, Maggi survived the introductory stage.

Around 1985, the demand for Maggi had increased tremendously in India
recovering their developmental costs and increasing the sales rate. Maggi
remained the monopoly in the Indian Market till 1990, after which Top Ramen
entered the market reducing the market share of Maggi a little.

10 years back Maggi had 50% of the market, In order to increase its sales again,
Maggi introduced a new flavour in 1997 which wasn’t well accepted by the
consumer, thus in 1999, Nestle re-launched its old flavour of Maggi, getting
back on track in terms of sales.

Over the years, Nestle has also introduced many products under the Maggi
brand, like the ketchups, soup, oats, pasta, more noodle flavours etc.

During it’s maturity stage, Maggi’s sales were at peak, production costs were
low and profits were high. In 2003, Hindustan Unilever Limited (HUL) was all
set to take on Nestle’s Maggi by launching a new category of liquid snacks
under it’s food brand Knorr Annapurna.

Priced aggressively at 5Rs, the new product called Knorr Annapurna Soupy
Snax was made available in 4 varieties. Like Maggi, it had a similar target
market and positioned it in a similar manner.

Also, Maggi faced tough competition from Top Ramen. That led to decline in
sales, signifying that Maggi had entered the maturity stage.

Maggi reaching the peak and seeing the sales rate declining launched a series of
new products. While keeping price aggressive at 5 Rs and made the distribution
channel more intensive to encourage their product over the competitor.

There were certain hiccups in the way- like the banning of Maggi. Due to high
lead content almost led us to believe that our favourite noodle brand is now off
the shelf. And may be reached its last phase, i.e., the decline stage.

But Nestle invested more in the research of Maggi and took corrective actions.
For example, Internal employee engagement, increased campaign, more
activities on social media, and revived back from the near disaster.

Talking about the current scenario, After the world was hit by the Corona Virus
Pandemic In the year 2019, Maggi sales shot up by 25% as consumers stayed
home and stockpiled instant noodles.
With increase in total and domestic sales by 8.1% and 8.5%, respectively,
Maggi’s revenue in the year 2020 and 2021 is continuing to increase. Maggi
therefore escaped its death and climbed back from the decline stage and
recovered well.

The launched products of Maggi are:

MAGGI 2-Minute Noodles

It is one of the largest and most loved foodbrands 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 nutrients for all
stage of your life. With the goodness of Protein and Calcium,MAGGI Noodles
is available in 4 delectable flavors

Masala, Chicken,Tomato and Curry.

MAGGI VEGETABLE ATTA NOODLES

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

MAGGI CUPPA MANIA:

Each offering of MAGGI Noodles has been developed keeping in mind

theIndian palate and what you like. Since in today‘s fast paced busy
life,multitasking is a reality, you need something that fits with your rushed
lifestyle a product which is tasty and healthy, is convenient to 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 watering variants Masala Yo! And Chilly Chow Yo! Packed with
real vegetables and the goodness of Calcium.

just add garam paani to the Noodles and voila! A cupful of delicious MAGGI
Cuppa Mania is ready for you to 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 theResearch and Development
efforts of Nestlé Group and are even moredelicious, quick to prepare,
convenient and healthy.
Taste Bhi, Health Bhi!.
 MAGGI Healthy Soups contain real vegetables, are low fat, low
cholesterol and free from synthetic colours and added MSG. These superior
healthy soups are now available in an enhanced range of 12 delicious variants:

 Healthy Style

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

Chinese Style

 Hot & Sour Vegetable

 Sweet Corn Vegetable
 Sweet Corn Chicken
 Oriental Thai Noodles

Chef Style

 Cream of Mushroom
 Tangy Tomato Vegetable
 Sweet n Sour Tomato Noodles
 Palak Corn
MAGGI SAUCES:
MAGGI Sauces have been an integral part of the Indian consumers household
for decades now. To cater to the diverse Indian palate, MAGGIhas 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 SauceLipsmacking tastes and vibrant

packaging make MAGGI Sauces true to its slogan -It's different!
MAGGI PICHKOO:
Pichkoo is a small doy pack which makes MAGGI Tomato ketchup affordable
to a host of new consumers. And now, MAGGI makes 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 resoundingreaction."New

MAGGI Pichkoo -It's different!"

PASTA

MAGGI PAZZTA:
To further delight the consumer, MAGGI now launches another range
of products for tasty and healthy eating NUTRI-LICIOUS PAZZTA. Thisquick
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 COCONUT MILK PRODUCT:

With MAGGI Coconut Milk Powder you can make rich coconut milk quickly
and conveniently by simply adding warm water. It is manufactured from the
best Sri Lankan coconuts. Easy to use and ideal for curries, rice preparations,
cakes, cookies and blender drinks. MAGGI Coconut Milk Powder gives you the
taste of real coconuts and has no added preservatives.
MAGGI PIZZA MAZZA:
Now you do not need to order pizzas from outside and wait for 30 minutes.
With MAGGI Pizza Mazza you can prepare delicious pizzas within minutes.
You can also have the mazza of the pizza on other items like naans, 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 pizza bases
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 intensive research and in-
depth understanding of Indian food habits and cooking practices, MAGGI
Bhuna Masala allows the housewife to prepare a large variety of tasty dishes
without the hassle of chopping and frying. The dishes retain that ‗special touch‘ of
the housewife as she adds her own spices….. Standing strong on its promise of ―Taste Bhi,
Health Bhi, MAGGI Bhuna Masala comes with "no added preservatives",
"contains only 1 tbsp* of oil" and "tastes just like homemade."

Gives you a perfect dish in three simple steps:

Open the pack & pour contents in the pan

Add vegetables/paneer/chicken/rajma etc.

Add spices and cook

MAGGI Kitchen Secrets Bhuna Masala comes in two variants:-

Bhuna Masala for Gravy Dishes-

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

Bhuna Masala for Vegetables and Dal-

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

Maggi is a German brand of food. It is quick and easy solutions – like bouillons,
soups, seasonings and sauces – to aid cooking and add flavour. The company
headquarter is in Switzerland. The mission of Maggi is to become champion the
goodness of home cooking, renewing its global product portfolio with
ingredients that people are familiar with, like those they might find in their
kitchen cupboard.
Company Name Maggi
Date of Establishment 1884
Establishment Place Germany
Registered Address Switzerland
Networth $12 Million
Parent Comapany Nestle
Telephone No. +41 21 924 1111
Company Status Active
Website [email protected]
Email [email protected]

ESTABLISHMENT

Maggi established in 1884 by Julius Maggi. It contains vegetables and original

flavours from vegetables, herbs and spices, grains and other nutrient-rich
ingredients. Maggi is an international brand of seasonings, instant soups and
noodles.

COMPETITORS IN MARKET

As we all know, Maggi has certainly been the topmost leading brand in the
noodle industry for decades but there are many other brands as well which have
given close competition to MAGGI in the past as well as in the present.
Below are the top 2 Maggi competitors:
RAMEN- The Ramen is the second top brand of Noodles in India and has been
trying hard for the last 18 years to beat Maggi. It is a global brand from Nissin,
which was launched in 1991. Top Ramen then was the heavy advertiser in the
media. Another factor was the promotion strategy and its interesting distribution
strategy. Top Ramen could not offer any serious differential to Maggi either in
terms of the brand or product. However, Maggi was able to gain back the lost
position because it was the pioneer brand that built the category.

YIPPEE- Sunfeast Yippee is the recently launched noodles brand in India,

which has been dominated by Maggi for many years. Recently, this product has
also seen a lot of activity with the launch of many new brands like Knorr from
HUL, Ching’s Secret by Capital Foods, etc.
Thus, it has tried to give itself a different positioning from the other
competitors in the market and it is the only competitor of Maggi who has
decided to head on while competing with it.

MAGGI VS TOP RAMEN

Top Ramen is the second largest Noodles brand in India trying hard for the past
18 years to beat Maggi Noodles. Top Ramen is a global brand from Nissin.
Launched in 1991, Top Ramen has been trying all possible marketing tools to
dethrone Maggi .First occasion was when the brand was launched, the brand
quickly went into limelight with its
famous positioning as Smoodles. But after the initial trying, people again went
back to Maggi noodles.The next occasion was when Maggi changed the taste. That was
an occasion where, as a brand loyalist , people dumped Maggi .For a while people
consumed Top Ramen. When Maggi reversed the taste, many people again
switched back .Top Ramen at that point of time was one of the heavy
advertisers in the media. And since the taste was also comparable, many Maggi
users may have switched to this brand. But it could not retain all the customers .
One factor is the price. Top Ramen was always perceived as a premium brand
compared to the affordable Maggi. The high price may have prompted many
Maggi users to switch back. Another factor was the promotion. Top Ramen
could not sustain the share of mind it generated during the formative years.
Maggi was able to bring in lot of noise because it had become an umbrella
brand and was advertising for various other products. Top Ramen had an
interesting distribution strategy. For the past 10 years, the brand has been
distributed by Marico. It is a case of marketing alliance where Top Ramen was
utilizing the
distribution strength of Marico. In 2008, the alliance was mutually called-off.
Now Nissin is
building its own distribution network. It is puzzling to see that a global brand
with lot of support from its parent could not put up a big fight with Maggi .The
major issue faced by Top Ramen was the differentiation. Top Ramen could not
offer any serious differentiation to Maggi either in terms of the product or
brand. Since there was no serious differentiation, Maggi was able to gain back
the lost ground because it was the pioneer brand who built the category. Top
Ramen also lost out when Maggi repositioned itself in the health platform.
MAGGI VS YIPPEE

ITC has always taken a very aggressive approach from the day it entered the
FMCG sector and has been giving a very tough fight to the already established
players because of the financial muscle that it has and the wider and deeper
reach that ITC has got even in the rural markets because of its tobacco business.
This always provides it an edge even over the established players in the market
as not many players in India have got such a deep and a wider reach for making
the products available to customers in almost every nook and corner in India.

And ITC has taken the same approach for the newly launched noodles brand
Sunfeast Yippee in the Indian market, which is dominated by Maggi from
decades. Recently, this product category

has also seen a lot of activity with the launch of many new brands like Horlick’s
Foodles by Glaxo Smithkline India, Knorr from HUL, Ching’s secret by Capital
Foods Ltd, Tasty Treat byFuture Group, etc. These players have been fighting
out the competitive battles to get the most of the instant noodles market of the
around Rs. 1300 crore and which is growing continuously at around 17-20
percent growth rate. All these players are giving Maggi a tough fight and are
eating out into the almost 70 percent market share that Maggi has got in this
market.
And one interesting thing is that all the players in this product category are
coming with a completely different positioning in the market, with GSK
focusing on projecting the noodles as a healthy snack option and even HUL
focusing on the soupy noodles as a positioning for their brands. And ITC has
also taken the same approach by focusing its noodles brand Sunfeast Yippee as
a brand using the benefit positioning concept in which they tried to position the
product as a better alternative to Maggi on the basis of following
three differentiating criteria :-

The first point used by Yippee to position itself as a better alternative over
Maggi was that itwas telling the customers that they should have the choice of
variety of masala with two variants in their product portfolio- Classic and
Magic. The stress was made upon the point that we want choices in each and
everything in life so why not have a choice while having instant noodles.

The second point focused on the shape of the contents within the pack. The
contents inother options available are in rectangular shape which have to be
broken which leads to shortpieces of noodles, whereas in Yippee noodle pack
the cake is in round shape which keeps thenoodles intact and long and smooth.

Then third thing that it focuses upon is the fact that Maggi must be had
immediately after itis cooked as after sometime the taste deteriorates and you
cannot have it, whereas Yippee noodles promises that they can even be had after
some time.

Thus it has tried to give itself a totally different positioning from the other
competitors present in the market and it is the only competitor to Maggi which
has decided to take it head on while competing with it

Company Logo
Maggi Tagline
 2 minutes noodles

 2 minutes for education

 Maggi takes the health route
 Happiness is homemade
 Mummy, I am hungry
 Enjoy your Maggi
 Awesome taste of 20 spices
 Extra delicious
 Your food for style
 Your favourite masala taste
 Uljha Maggi sab suljhaye
 Taste bhi health bhi
 Goodness of fibre for 3 roties
 Wake up to a nutri licious choice
 Which Maggi recipe will you touch today?
 Goodness of iron with every pack of Maggi
 Big taste small pack
 We are touched by your love
 Uncovers a special secret
 Yumminess with whole atta goodness
 Effortless under pressure
 The only cup you need
 Kuch acchaa pak raha hai
 Pasta so satisfying – you will relish every bite
 Delight your family today
  With a soup, you are always at home
 Everyone can cook now
 The most loved Maggi noodles recipes ever!
 Let’s make ordinary extraordinary
 Win your family’s hearts in minutes
 Which MAGGI recipe did you try today?
 Start your way the healthy way
 This tastes so much better than my wife’s cooking
 Celebrate the MAN and the holiday with Maggi
 Mere paas Maggi hai
 Healthy breakfast becomes more enjoyable
 Maggi me my way
 The Maggi family
 What’s cooking
 Enjoy the bigger pack of Masala Magi

Analysis and Interpretation

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 faced
challenges. 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 came to know
that there was some thing wrong with the formula that spoiled the taste. So the
formula was changed from fried base to oiled dried base.
Competition increased in noodle segment: When Maggi was enjoying being the
only noodle offering by any company Top ramen entered the market as a
competition. This was a big challenge for Maggi. Though Top Ramen couldn‘t do
well in India.

New product launched in market but failed- Nestle decided to expand its
offerings by offering Dal atta noodles & Sambhar flavor noodles. But these
products were not welcomed by the people the very special taste of Magg iwas
still ruling the consumer.

Maggi launched some new products: Ketchups, Soups, Taste makers etc.but
they were not successful.

The strength of company are:

 Established Family Brand.

 Strong Global Corporate Brand(NIL).

 Specialization in food processing category marketing and distribution in

urban market.

 Presence of other product segments of food category: dairy product,

chocolate, infant foods.

 Pioneer and leader so mover advantage in Noodles, Sauces, Ketchups and

Soup market.

 Nestle symbolization of warm, family & shelter.

 Research and development division in India.

 New Noodles plant in Uttranchal.

The weakness of company are:

 Generic brand to Noodles in India.

 Low rural market presences constraints.

 Uniform brand for all food category.

 Brand proliferation.

Opportunities of company are:

 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 still
unexplored.

 Opportunities to be substitute to other snacks category of food products.

Threats to company are:

 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 Noodles.

 Less entry barriers in the market segment for product category.

  ITC‘s strong base in Indian market.

 Substitute product to product segment.

Conclusion and recommendations

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

Riding on the success of noodles, Nestle India, tried to make extensions of the
Maggi brand to a number of products like, sauces, ketchups, pickles, soups,
tastemakers and macaroni in the mid-1990s. Unfortunately, the macaroni and
pickles didn‘t pick up as expected. The soups and sauces did somewhat fine,
gathering considerable sales volumes and have a satisfactory presence even
today.

Maggi Noodles‘ itself faced a bit of difficulty with respect to taste‘, and nearly lost its
position in the minds of Indian consumers in the late 1990s. When Nestle
changed the formulation of its tastemaker, the ominous packet that came along
with Maggi Noodles, a major chunk of consumers were put-off and sales started
dropping.
Also,
Maggi‘s competitor Top Ramen‘ took advantage of the situation and started a
Parallel aggressive campaign to eat into Maggi‘s market share. But the company
quickly realised this and went back into making the original formula coupled
with free sampling campaign. This helped Maggi to win back its lost
consumers and pushed up its sales volumes again.

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

 Maggi should Focus on creating a product that do not need any cooking

 It should conduct promotional campaigns at schools in small towns with

population not more than 1000

 It should strengthen the distribution channel of the rural areas within

100km of all the metros.

 It should launch new advertisement campaign (TV, radio, print media

commercials) with a brand ambassador or mascot

Beeton, S. and Benfield, R., 2002. Demand Control. Journal of Sustainable

Tourism,, Volume no
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 https://www.slideshare.ne
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Magginoodlesmarketingplan

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BOOKS

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

WEBSITES

https//www.scribd.com
www.mbaknol.com

http//en.wikipedia.org/nestle

http//en.wikipedia.org/maggi

www.bartleby.com