A comparative study on Maggi and other noodles

at Gondia

Index
1. Introduction
2. Company Profile
3. Research Methodology
3.1 Objectives
3.2 Hypothesis
3.3 Limitation
4. Data Collection
4.1. Primary data
4.2 Secondary data
5. Data Analysis & Interpretation
6. Conclusion & Findings
6.1 Conclusion
6.2 Findings
6.3 Suggestion
7. Bibliography
8. Appendix

INTRODUCTION

CHAPTER 1
INTRODUCTION

Comparative research is a research methodology in the social sciences that

aims to make comparisons across different countries or cultures. A major problem in
comparative research is that the data sets in different countries may not use the same
categories, or define categories differently (for example by using different definitions
of poverty).

Development of the tradition

When the practice of comparative research began is a matter of debate. Karl
Deutsch has suggested we have been using this form of investigation for over 2,000
years. Comparing things is essential to basic scientific and philosophic inquiry, which
has been done for a long time. Most authors are more conservative in their estimate of
how long comparative research has been with us. It is largely an empty debate over
the definition of the tradition with those questioning whether comparing things counts
as comparative research.

Textbooks on this form of study were beginning to appear by the 1880s, but its rise to
extreme popularity began after World War II. There are numerous reasons that
comparative research has come to take a place of honour in the toolbox of the social
scientist. Globalization has been a major factor, increasing the desire and possibility
for educational exchanges and intellectual curiosity about other cultures.Information
technology has enabled greater production of quantitative data for comparison, and
international communications technology has facilitated this information to be easily
spread.

Comparative research defined

Comparative research, simply put, is the act of comparing two or more things with a
view to discovering something about one or all of the things being compared. This
technique often utilizes multiple disciplines in one study. When it comes to method,

the majority agreement is that there is no methodology peculiar to comparative

research. The multidisciplinary approach is good for the flexibility it offers, yet
comparative programs do have a case to answer against the call that their research
lacks a "seamless whole."

There are certainly methods that are far more common than others in comparative
studies, however. Quantitative analysis is much more frequently pursued than
qualitative, and this is seen by the majority of comparative studies which use
quantitative data. The general method of comparing things is the same for
comparative research as it is in our everyday practice of comparison. Like cases are
treated alike, and different cases are treated differently; the extent of difference
determines how differently cases are to be treated. If one is able to sufficiently
distinguish two carry the research conclusions will not be very helpful.

Secondary analysis of quantitative data is relatively widespread in comparative

research, undoubtedly in part because of the cost of obtaining primary data for such
large things as a country's policy environment. This study is generally aggregate data
analysis. Comparing large quantities of data (especially government sourced) is
prevalent.[1] A typical method of comparing welfare states is to take balance of their
levels of spending on social welfare.

In line with how a lot of theorizing has gone in the last century, comparative research
does not tend to investigate "grand theories," such as Marxism. It instead occupies
itself with middle-range theories that do not purport to describe our social system in
its entirety, but a subset of it. A good example of this is the common research program
that looks for differences between two or more social systems, then looks at these
differences in relation to some other variable coexisting in those societies to see if it is
related. The classic case of this is Esping-Andersen's research on social welfare
systems. He noticed there was a difference in types of social welfare systems, and
compared them based on their level of decommodification of social welfare goods. He
found that he was able to class welfare states into three types, based on their level

of decommodification. He further theorized from this that decommodification was

based on a combination of class coalitions and mobilization, and regime legacy. Here,
Esping-Andersen is using comparative research: he takes many western countries and
compares their level of decommodification, then develops a theory of the divergence
based on his findings.
Comparative research can take many forms. Two key factors are space and time.
Spatially, cross-national comparisons are by far the most common, although
comparisons within countries, contrasting different areas, cultures or governments
also subsist and are very constructive, especially in a country like New Zealand,
where policy often changes depending on which race it pertains to. Recurrent
interregional studies include comparing similar or different countries or sets of
countries, comparing one's own country to others or to the whole world.
The historical comparative research involves comparing different time-frames. The
two main choices within this model are comparing two stages in time (either
snapshots or time-series), or just comparing the same thing over time, to see if a
policy's effects differ over a stretch of time.

When it comes to subject matter of comparative inquiries, many contend there is none
unique to it. This may indeed be true, but a brief perusal of comparative endeavours
reveals there are some topics more recurrent than others. Determining whether
socioeconomic or political factors are more important in explaining government action
is a familiar theme. In general, however, the only thing that is certain in comparative
research issues is the existence of differences to be analysed.

COMPANY PROFILE

CHAPTER 2
INTRODUCTION TO NESTLE

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

HISTORY OF NESTLE
The company dates to 1867, when two separate Swiss enterprises were founded that would
later form the core of Nestl. In the succeeding decades the two competing enterprises
aggressively expanded their businesses throughout Europe and the United States.
In August of 1867 Charles A. and George Page, two American brothers from Lee County, IL,
established the Anglo-Swiss Condensed Milk Company in Cham. Their first British operation
was opened at Chippenham, Wiltshire in 1873.
In September 1867, in Vevey, Henri Nestl developed a milk-based baby food and soon
began marketing it. Henri Nestl retired in 1875, but the company, under new ownership,
retained his name as Farine Lacte Henri Nestl.

Henri Nestl.

In 1877 Anglo-Swiss added milk-based baby foods to its products, and in the following year
the Nestl company added condensed milk, so that the firms became direct and fierce rivals.
In 1905 the companies merged to become the Nestl and Anglo-Swiss Condensed Milk
Company, retaining that name until 1947, when the name Nestl Alimentana SA was taken as
a result of the acquisition of Fabrique de Produits Maggi SA (founded 1884) and its holding
company, Alimentana SA of Kempttal, Switzerland. Maggi was a major manufacturer of
soup mixes and related foodstuffs. The companys current name was adopted in 1977. By the
early 1900s, the company was operating factories in the United States, United Kingdom,
Germany and Spain. World War I created new demand for dairy products in the form of
government contracts; by the end of the war, Nestl's production had more than doubled.
After the war, government contracts dried up and consumers switched back to fresh milk.
However, Nestl's management responded quickly, streamlining operations and reducing
debt. The 1920s saw Nestl's first expansion into new products, with chocolate the company's
second most important activity.

Nestl's logo used until 1970s.

Nestl felt the effects of World War II immediately. Profits dropped from US$20 million in
1938 to US$6 million in 1939. Factories were established in developing countries,
particularly Latin America. Ironically, the war helped with the introduction of the company's
newest product, Nescaf, which was a staple drink of the US military. Nestl's production and
sales rose in the wartime economy.
The end of World War II was the beginning of a dynamic phase for Nestl. Growth
accelerated and companies were acquired. In 1947 came the merger with Maggi seasonings
and soups. Crosse & Blackwell followed in 1950, as did Findus (1963), Libby's (1971) and
Stouffer's (1973). Diversification came with a shareholding in L'Oral in 1974. In 1977,
Nestl made its second venture outside the food industry by acquiring Alcon Laboratories
Inc.

In 1984, Nestl's improved bottom line allowed the company to launch a new round of
acquisitions, notably American food giant Carnation and the British confectionery company
Rowntree Mackintosh in 1988, which brought the Willy Wonka Brand to Nestl.
The first half of the 1990s proved to be favorable for Nestl: trade barriers crumbled and
world markets developed into more or less integrated trading areas. Since 1996 there have
been acquisitions including San Pellegrino (1997), Spillers Petfoods (1998), and Ralston
Purina (2002). There were two major acquisitions in North America, both in 2002: in June,
Nestl merged its U.S. ice cream business into Dreyer's, and in August a US$2.6 billion
acquisition was announced of Chef America, the creator of Hot Pockets. In the same time
frame, Nestl came close to purchasing the iconic American company Hershey's, though the
deal fell through. Another recent purchase includes the Jenny Craig weight loss program for
US $ 600 million.
In December 2005 Nestl bought the Greek company Delta Ice Cream for 240 million. In
January 2006 it took full ownership of Dreyer's, thus becoming the world's biggest ice cream
maker with a 17.5% market share.
In November 2006, Nestl purchased the Medical Nutrition division of Novartis
Pharmaceutical for $2.5B, also acquiring in 2007 the milk flavoring product known as
Ovaltine. In April 2007 Nestl bought baby food manufacturer Gerber for $5.5 billion.
In December 2007 Nestl entered in a strategic partnership with a Belgian chocolate maker
Pierre Marcolini. Nestl agreed to sell its controlling stake in Alcon to Novartis on 4 January
2010. The sale forms part of a broader US $39.3 billion offer by Novartis to fully acquire the
worlds largest eye-care company.

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

10

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

Sales by activity breakdown: 27% from drinks, 26% from dairy and food

products, 18% from ready-prepared dishes and ready-cooked dishes, 12% from
chocolate, 11% from pet products, 6% from pharmaceutical products and 2% from
baby milks.

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

(26% from US), 16% from Asia, 21% from rest of the world.

JOINT VENTURES:

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

11

INDUSTRY PROFILE
Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer packaged
goods. Items in this category include all consumables (other than groceries/pulses) people
buy at regular intervals. The most common in the list are toilet soaps, detergents, shampoos,
toothpaste, shaving products, shoe polish, packaged foodstuff, and household accessories and
extends to certain electronic goods. These items are meant for daily of frequent consumption
and have a high return.
The Indian FMCG sector with a market size of US$14.8 billion is the fourth largest sector in
the economy. The FMCG market is set to double from USD 14.7 billion in 2008-09 to USD
30 billion in 2012. FMCG sector will witness more than 60 per cent growth in rural and semiurban India by 2010. Indian consumer goods market is expected to reach $400 billion by
2010.Hair care, household care, male grooming, female hygiene, and the chocolates and
confectionery categories are estimated to be the fastest growing segments. At present, urban
India accounts for 66% of total FMCG consumption, with rural India accounting for the
remaining 34%. However, rural India accounts for more than 40% consumption in major
FMCG categories such as personal care, fabric care, and hot beverages. In urban areas, home
and personal care category, including skin care, household care and feminine hygiene, will
keep growing at relatively attractive rates. Within the foods segment, it is estimated that
processed foods, bakery, and dairy are long-term growth categories in both rural and urban
areas.The growing incline of rural and semi-urban folks for FMCG products will be mainly
responsible for the growth in this sector, as manufacturers will have to deepen their
concentration for higher sales volumes.
Major Players in this sector include Hindustan Unilever Ltd., ITC (Indian Tobacco
Company), Nestl India, GCMMF (AMUL), Dabur India, Asian Paints (India), Cadbury
India, Britannia Industries, Procter & Gamble Hygiene and Health Care, Marico Industries,
Nirma,Coca-Cola, Pepsi and others.As per the analysis by ASSOCHAM, Companies
Hindustan Unilever Ltd , Dabur India originates half of their sales from rural India. While
Colgate Palmolive India and Marico constitutes nearly 37% respectively, however Nestle
India Ltd and GSK Consumer drive 25 per cent of sales from rural India.
A rapid urbanization, increase in demands, presence of large number of young population, a
large number of opportunities is available in the FMCG sector. The Finance Minister has
12

proposed to introduce an integrated Goods and Service Tax by April 2010.This is an

exceptionally good move because the growth of consumption, production, and employment is
directly proportionate to reduction in indirect taxes which constitute no less than 35% of the
total cost of consumer products - the highest in Asia.. The bottom line is that Indian market is
changing rapidly and is showing unprecedented consumer business opportunity.

MAJOR COMPETITORS OF NESTLE MAGGI

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

The data shows that Maggi's share of instant noodles, on an all-India basis, across urban
markets, has slipped consistently between December '09 to July '10. While Maggi instant
noodles (minus vermicelli) had a 90.7% share in December '09, the share dropped to 86.5%
in July '10 on an all-India basis.
A regional split of the data shows that Maggi's instant noodles' value market share has fallen
across the east, south, north and west zones for the same period.
Analysts say with new competition, Maggi's market share is certain to get impacted , but add
that Nestle has the potential to expand the Rs 1,300-crore instant noodles category which

13

itself is growing at a rapid 15% annually. A detailed email sent to Nestle on Thursday elicited
no response.
Apart from HUL and GSK which have positioned their noodles as 'healthy' snacking options
targeting kids and mothers, others like Indo-Nissin's Top Ramen, Capital Foods' Ching's
Secret and CG Foods's Wai-Wai , though around for long, are stepping up marketing efforts
to take advantage of category growth. Besides, private brands like Big Bazaar's Tasty Treat
and Aditya Birla Retail's Feasters are notching up share.
Manoj Menon, FMCG analyst at brokerage firm Kotak Securities, wrote in a report earlier
this month: "Maggi faces product substitution risk and brands like Knorr and Foodles could
potentially impact its incremental growth. Nestle faces a challenging competitive
environment in culinary."
GSK, which entered the category in December last year, has taken away share from Maggi
mainly in the South and East riding on the equity of Horlicks and its well-entrenched
distribution in the regions.
GSK's executive VP, marketing, Shubhajit Sen, said: "Consumers were looking for a choice
in instant noodles; combined with that, the equity of Horlicks is leading to a lot of trails. The
initial response to Foodles is much higher than our expectations."
On the other hand, HUL, which rolled out Knorr Soupy noodles in the South this February,
had to postpone the brand's national launch due to capacity constraints because of heavy
consumer offtake. An HUL spokesman said: "We are very pleased with the performance of
Knorr Soupy noodles."
Private brands are whetting appetites of consumers too. According to Devendra Chawla,
business head, private brands, Future group: "The category boundary is set to be re-drawn.
From a snack food targeted at children, instant noodles category has evolved as a mainstay
meal even for grown ups."
Mr Chawla said Tasty Treat was the second biggest instant noodles brand in its Big Bazaar
stores after Maggi. The brand packaging was revamped last year and Future plans to roll out
additional variants in a month's time taking the number of variants to nine from the existing
three.

14

HISTORY OF MAGGI INDIA:

Nestl India Ltd. (NIL), the Indian subsidiary of the global FMCG major, Nestl SA,
introduced the Maggi brand in India in 1982, with its launch of Maggi 2 Minute Noodles, an
instant noodles product.
With the launch of Maggi noodles, NIL created an entirely new food category - instant
noodles - in the Indian packaged food market. Because of its first-mover advantage, NIL
successfully managed to retain its leadership in the instant noodles category even until the
early 2000s.
NIL offered a variety of culinary products such as instant noodles, soups, sauces and
ketchups, cooking aids (seasonings), etc., under the Maggi brand (Refer to Exhibit II for
Maggi's product portfolio as of mid-2006). Of these, instant noodles had been NIL's main
product category in the culinary segment since the launch of Maggi 2 Minute Noodles
(Maggi noodles) in 1982. Over the years, Maggi noodles became a popular snack food
product in India.
During the 1990s, the sales of Maggi noodles declined, and this was attributed partly to the
growing popularity of Top Ramen , another instant noodles product. In order to improve sales
and attract more consumers, NIL changed the formulation of Maggi noodles in 1997.
However, this proved to be a mistake, as consumers did not like the taste of the new noodles.
In March 1999, NIL reintroduced the old formulation of the noodles, after which the sales
revived. Over the years, NIL also introduced several other products like soups and cooking
aids under the Maggi brand.
However, these products were not as successful as the instant noodles.In the early 2000s,
Maggi was the leader in the branded instant noodles segment, and the company faced little
serious competition in this segment. In the early 2000s, NIL started introducing new 'healthy'
products in accordance with the Nestl Group's global strategy to transform itself into a
health and wellness company. In March 1999, NIL reintroduced the old formulation of the
noodles, after which the sales revived.
Over the years, NIL also introduced several other products like soups and cooking aids under
the Maggi brand. However, these products were not as successful as the instant noodles. In

15

the early 2000s, Maggi was the leader in the branded instant noodles segment, and the
company faced little serious competition in this segment.
In July 2001, Maggi replaced Nescaf (NIL's coffee products brand) as the company's core
brand. Nescaf had been NIL's core brand since 1998.
Commenting on the shift, Carlo Donati (Donati), chairman and managing director, NIL, said,
"The focused approach on Nescaf, which was the company's flagship brand over the last few
years, has yielded rich dividends and we plan to replicate the same in case of Maggi as well."
In the early 2000s, the Nestl 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 Nestl products to make them
healthier, and to develop new health and wellness products. Since the early 2000s, the Nestl
Group had been introducing 'health and wellness products all over the world. In India, NIL
introduced

new

'healthier'

weaning

and

milk

products

in

2004.

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

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

16

so dumped those products. Maggi Brand of products sustained recession in 2000 and 2001 in
India by introducing economy packets.

To fulfill novelty needs of customers and revitalize Maggi Noodles Brand NIL made
different attempts by introducing new formulation to new taste but customers resisted change
and Maggi had to reintroduce Maggi Noodles in same taste. Maggi Noodle had till 2005 five
product line on noodles with four variant in Maggi 2 Minutes Noodle. In 2006 in compliance
with NIL target to be health and Wellness Company Maggi repositioned it as health and
taste food products. NIL has also introduced with taste and product line in Sauces and Soup
Market under Maggi to catch new segment, revitalize brand, compete with other producers
and fulfill expectation of customers.
In 2005 Maggi brand worth was 3.7 billion from 1.7 billion market worth in 1.7 billion in
2003. Maggi Noodle is Market leader with around 80% market share in Noodles/Pasta and
Maggi Sauce is market leader with almost 37% of market share in 2005 in 1.8 billion market
of India. Knorr has taken over Maggi in Soup market recently.
In 2005 Maggi was the highest spender in the Promotion and Sales in the Indian Market in
the Noodles Category.
Maggi is competing with Heinz Sauces and Ketchup, Knoor Soups, Kissin Sauces and
Ketchup, Top Ramen, Sunfeast Pasta Wai Wai and 2 PM in corresponding categories of
products and variants

MAGGI TODAY:
The year 2003 saw India leading in worldwide Maggi sales. The brand has grown to an
estimated value of Rs 160-170 crore and contributes at least 8 9% to Nestle Indias top line.

17

All the same, some FMCG analysts feel that the brand has not done much to expand the
noodles category. Even after 20 years of its launch, the size of the instant noodles market is
yet quite small at Rs 200 crore. But yes, the parent company, Nestle India Limited has
certainly encouraged the brand to enter into other culinary products. Carlo Donati told a
leading newspaper that he wants to sell two and a half times of what he is selling today, in the
next 10 years.
Of course, being a first-mover - or even a market dominator - counts for nothing if marketers
let their guard down. Maggi noodles, which built itself on the taste-and-convenience platform
through the 80s and early 90s, started facing the heat from Indo Nissins Top Ramen brand
around 1995. The latter began pushing forward aggressively on a combination of taste
variants, smart audience segmentation and Shahrukh Khans brand endorsement.
Nestle promptly re-jigged its offering with a new taste - which didnt go down well with the
consumer. In 1999, Maggi was relaunched with its original taste, and sustained efforts saw
the brand reclaiming lost ground. Since then, the brand has been innovating constantly to
keep share. Maggi adapted to local tastes and withstood competition over the years and has
continuously sensitised itself to the evolving Indian consumer, says Martial Rolland,
chairman and managing director, Nestle India.

MARKETING MIX

18

PRODUCTS OF MAGGI
NOODLES:
MAGGI 2 MINUTE NOODLES:
MAGGI 2-Minute Noodles is one of the largest and most loved food brands that defines
Instant Noodles in India.
Continuing to spread joy as it has done for the last 25 years, your favorite MAGGI Noodles is
as tasty as ever and even provides essential 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 2- MINUTE NOODLES

MAGGI VEGETABLE ATTA NOODLES

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

MAGGI VEGETABLE ATTA NOODLES

19

MAGGI CUPPA MANIA

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

MAGGI CUPPA MANIA

SOUPS

MAGGI HEALTHY SOUPS:

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

20

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

SANJEENI MAGGI HEALTHY CUP

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

MAGGI SOUPS
21

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

The quintessential Rich Tomato Ketchup and Rich Tomato Sauce.

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

The Indian style Tomato Chatpat Sauce

Lipsmacking tastes and vibrant packaging make MAGGI Sauces true to its slogan - It's
different!

MAGGI SAUCES

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

22

MAGGI PICHKOO

PASTA
MAGGI PAZZTA:
To further delight the consumer, MAGGI now launches another range of
products for tasty and healthy eating NUTRI-LICIOUS PAZZTA. This
quick cooking pasta can be conveniently prepared in just 5 minutes, at

any time of the day that you want a tasty and healthy light meal. MAGGI
NUTRI-LICIOUS PAZZTA is made from 100% Suji, and is a source of
Protein and Fibre. It has being launched in two delicious flavours Masala
Penne and Cheese Macaroni.

MAGGI PAZZTA
23

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

24

RESEARCH
METHODOLOGY

25

CHAPTER 3
3.1 RESEARCH METHODOLOGY
The methodology that was adopted for the study includes both primary source of data
as well as the secondary source of data. The methodology of the study can be explained.

The Research and Methodology adopted for the present study has been systematic and was
done in accordance to the objectives set which has been detailed as below.

Research Definition
Research is a process in which the researcher wishes to find out the end result for a
given problem and thus the solution helps in future course of action.
According to Redman & Mory, research is defined as a Systemized effort to
gain new knowledge.

Research Design:
According to Claire Seltiz, a research design is the arrangement of condition and
analysis of data in manner that aims to combine relevance to the research purpose with
economy in procedure.

26

3.2 OBJECTIVES
To make a comparative study of Maggi & Other Noodles.
To understand the brand performance of Maggi product.
To Understand the Marketing and Promotional Strategies adopted by Nestle
Maggi.
To study the impact of brand image of customer buying process.

27

3.3 HYPOTHESIS

There is a higher level of Consumer satisfaction among the Maggi noodles.

Nestl India Ltd. (NIL) is providing in range product to customer.

28

3.4 LIMITATION

Time was limited 3 month for the study.

Questionnaire was used for primary data collection

Generally, the respondents were busy in their work and were not interested in
responding.

29

3.5 DATA COLLECTION

Data collection refers to a purpose gathering of information relevant to the subject
matter under study and methods depend mainly on nature, purpose and scope of the
enquiry to be undertaken on the available resource and time.

Data collection is one of the methods of research. There are mainly two methods of the
data collection.

PRIMARY DATA COLLECTION

SECONDARY DATA COLLECTION

PRIMARY DATA:
The primary data are those which are collected afresh and for the first
time, and thus happens to be original in character. We can obtain primary data either
through observation or through direct communication with respondents in one form or
another or through personal interview.
SECONDARY DATA:
Secondary data means data that are already available i.e. they refer to the data which
have been already been collected and analyzed by someone else. When the researcher
utilizes secondary data, then he has to look into various sources from where he can
obtain them.

Internet
Company manual and booklets
Books etc.
The source of information is generally classified as primary and secondary.
According to payline V. Young The source of information can be classified into
documentary sources and field sources.

30

a) Primary data:The information given / collection by individuals or group constitute primary

source.
Methods of generating primary data
i) Survey
ii) Personal interview
iii) Observation
v) Questionnaire
b) Secondary data:
Books, diary, manscrupt, letter, magazine, internet etc. are the secondary or
documentary source. The researcher for this dissertation has decided to use primary
source as interview schedule and secondary source as books and internet for data
collection.
Tools Of Data Collection:
a) Interview schedule & questionnaire was used as tool for primary source of
data collection.
b) Interview schedule consist of number of question typed in a definite order or
form.
Pre-study:
After careful study of literature and expert consultation the researcher still may
have only a rather vague idea about the critical element in his problem. As pilot study
sometimes may be launched as a step preliminary to the form scale before original
study are carried out in order to gain some preliminary information of the main
project.

31

Pretesting: Pretesting is the process of an advance testing of study design after the interview
schedule has been prepared .The researcher referred books and internet to get prepared
literature for this project & report.
Processing:Once the collection of data is over the main step top arranged for processing
and analysis of data.

Editing:
The preparation of the data forms for tabulations must include on operational
procedure for accepting, modifying or resection individual questionnaire.

Tabulation:
Tabulation is a process of summarizing raw and display it in compact forms for
further analysis. Analysis of data is made possible through tables. These tables are
made for different variables and to show relationship with each other.

Interpretation of data:Analysis and interpretation are central step in research process. The goal of
analysis is to summarize o collected data in such a way that they provide answer to the
and triggered the researcher. Interpretation is the research for the broader meaning of
research finding.

32

DATA ANALYSIS AND

INTERPRETATION

33

CHAPTER 4
DATA COLLECTION AND INTERPRETATION

1. Most of the customers who visited the store

Male

Female

30 %

70 %

Gender
80
70%
70
60
50
40
30%
30
20
10
0
Male

Female

Interpretation:From the above the graph it is interpreted that 70% customers who visited
the stores are Female. While rest 30% customers are males.

34

2. Occupation of the customers

Student

Service Holder

Businessmen

other

16 %

35 %

39 %

10 %

Occupation
45
39

40

35

35
30
25
20

Occupation

16

15

10

10
5
0
Student

Service holder

Businessmen

Others

Interpretation:-

From the above the graph it is interpreted that most of the

customers having business as occupation preferred Soaps brand of the
products. 35% of the customers are service holders.

35

3. Monthly Income of the customers

15,000
25,000
19 %

Less than
15,000
6%

25,000
50,000
23 %

50,000
1,00,000
27 %

More than
1,00,000
35 %

Monthly Income
40
35%
35
30

27%
23%

25
19%

20

Monthly Income

15
10

6%

5
0
Less than
15,000

15,000
25,000

25,000 50,000

50,000
1,00,000

More than
1,00,000

Interpretation:From the above the graph it is interpreted that people having

monthly income of more than Rs 1lakh purchase products most while sum
whose income is 50000 1 lakh also prefers product.

36

4. Have you heard of Maggi Noodle?

Yes

No

21%

79%

79%

80
60
40
20

Sales

21%

0
Yes
No

Interpretation
From the above the graph it is interpreted that 79% of the
customers have heard about the Maggi Noodle. While 21% customer
does not have any information regarding of the Maggi Noodle.

37

5. Are you satisfied with the Maggi Noodle?

Yes

No

80%

20%

90
80
80
70
60
50
40
30
20
20
10
0
Yes

No

Interpretation

100% respondents in use Maggi Noodle their 80 percent customer called

yes and 20 percent customer called No.

38

6. What comes first in your mind when you hear the word MAGGI?
Noodle

35

Fast food

10

Snacks

None of these

40
35
30
25
20
15
10
5
0
noodles

fast food

snacks

none of these

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

39

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

Maggi

38

yippie

10

Topramen noodles

Anil noodles

60
50
40
30
20
10
0
maggi

top ramen

wai wai noodle

anil noodle

Interpretation

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

40

8. With what product would you associate the brand Maggi?

Ketchup

12%

Noodles

75%

Soup

10%

Masala

3%

ketchup
noodle
soup
masala

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

41

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

Taste

Hygiene/purty

Variety/flavor

Availability

packaging

6
5
4
3
2
1
0
taste

hygiene

variety

availability

packaging

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

42

10. Rank the categories which Maggi should look in future in order of your importance:
Chocolate

Salted potato chips

15

Fruit juice

Processed foods

20

others

chocolate
potato chips
fruit juice
processed food
other

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

43

11. How do you perceive Maggi products?

Good to health

15

Ready to eat

25

Junk food

Tasty/fun eating

25
20
15
10
5
0
good to health

ready to eat

junk food

tasty/fun
eating

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

44

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

Maggi masala

25

Maggi vegetable atta noodle

10

Maggi dal atta noodle

Maggi rice noodle mania

others

30
25
20
15
10
5
0
maggi masala maggi vegetable maggi dal atta
atta

maggi rice

others

Interpretation
Out of 50 half of consumer consume maggi masala, 10 consumer consume maggi
vegetable atta noodle, 8 consume maggi rice noodle mania, 5 consumer consume dal atta
noodle& remaining consume other. So the marketing & sale of maggi masala noodle is more
as compared to other maggi noodle.

45

13. Do you perceive maggi noodles as a healthy product?

Yes

35

No

15

yes
no

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

46

FINDINGS,
CONCLUSION &
SUGGESTION

47

CHAPTER 5
5.1 FINDINGS

32 percent of the respondents prefer maggi 2-minute noodles.

Vast majority (85 percent) of the respondents have tasted all brands of nestle Maggi
noodles.

72 percent of the respondents purchase nestle maggi noodles for its quality with low
price.

60 percent of the respondents purchase nestle maggi noodles whenever needed.

Television advertisements are a major factor in purchase decision compared toother

Medias.

The foremost influencer in purchase decision of the respondents is children.

60 percent of the respondents were expecting new varieties of maggi noodles from
Nestle.

38 percent of the respondents wanted a change in the quantity of present brands.The

respondents want small quantity packets.

50 percent of the respondents feel that the advertisements are good.

44 percent of the respondents feel that prices are cheap.

48

5.2 CONCLUSION

The food processing business in India is at a nascent stage. Currently, only about 10%
of the output is processed and consumed in packaged form thus highlighting huge
potential for expansion and growth.

Traditionally, Indians believe in consuming fresh stuff rather than packaged or

frozen, but the trend is changing and the new fast food generation is slowly changing.

Riding on the success of noodles, Nestle India, tried to make extensions of the Maggi
brand to a number of products like, sauces, ketchups, pickles, soups, tastemakers and
macaroni in the mid-1990s.

Unfortunately, the macaroni and pickles 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.

49

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

50

BIBLIOGRAPHY

51

BIBLIOGRAPHY
Books

Marketing Managememnt - J.C. Berry

Marketing Managememnt P. Kotler

Introduction Marketing Managememnt by Adran Palmar

Research Methodology by C.R. Kothari.

Journals

Consumer Behaviour in Indian

Websites

http://www.maggi.com.

www.wikipidia.com/maggi

www.google.com

52

APPENDIX

53

APPENDIX
1.

Most of the customers who visited the store

Male
Female

Occupation of the customers

Student
Service Holder
Businessmen
Other

Monthly Income of the customers

Less than 15,000
15,000 25,000
25,000 50,000
50,000 1,00,000
More than 1,00,000

2.

3.

4.

5.

Have you heard of Maggi Noodle?

Yes
No
Are you satisfied with the products of Maggi Noodle?
Yes
No

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

Noodles
Fast Food
Snacks
None of these

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

Maggi
Top Ramen
Wai Wai Noodles
Anil Noodles

54

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

Noodles ______
Ketchup ______
Soup _____
Pickles _____
Cubes _____

8. With what product would you associate the brand Maggi?

Ketchup
Noodles
Soup
Masala

9. 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 and masalas) ____
Others(please mention) ________________

10. How do you perceive Maggi products?

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

11. Which Maggi products in noodles category do you regularly buy? (Repositioning
Awareness)

Maggi masala
Maggi vegetable atta noodles
Maggi dal atta noodles
Maggi rice noodle mania
Others

12. Do you perceive maggi noodles as a healthy product?

Yes
No
55