Maggi Going with the taste &

Preferences
Project Report

CONTENT

Introduction
Introduction to Nestle company
Introduction to Maggi
MARKET SEGMENTATION, TARGETING AND POSITIONING OF
MAGGI

Marketing mix of Maggi

Strategies adopted by Nestle Maggi

SWOT analysis of Maggi

Questionnaires on Maggi
Graphical Representation of Questionnaires
Conclusion
Reference

INTRODUCTION
FMCG industry, alternatively called as CPG (Consumer packaged goods)
industry primarily deals with the production, distribution and marketing of
consumer packaged goods. The Fast Moving Consumer Goods (FMCG) are those
consumables which are normally consumed by the consumers at a regular interval.
Some of the prime activities of FMCG industry are selling, marketing, financing,
purchasing, etc. The industry also engaged in operations, supply chain, production
and general management.
Examples include non-durable goods such as personal care, household care and
food & beverages and many other consumables. Though the profit margin made on
FMCG products is relatively small, they are generally sold in large quantities.
The Fast Moving Consumer Goods (FMCG) industry in India is one of the largest
sectors in the country and over the years has been growing at a very steady pace.
The Indian FMCG industry is largely classified as organized and unorganized. This
sector is also buoyed by intense competition. Besides competition, this industry is
also marked by a strong distribution network coupled with increasing influx of
MNCs across the entire value chain. This sector continues to remain highly
fragmented.

INTRODUCTION OF NESTLE COMPANY

Nestl is the world's leading nutrition, health and Wellness Company. Their
mission of "Good Food, Good Life" is to provide consumers with the best tasting,
most nutritious choices in a wide range of food and beverage categories and eating
occasions, from morning to night.
The Nestl Corporate Business Principles are at the basis of their companys
culture, developed over 140 years, which reflects the ideas of fairness, honesty and
long-term thinking.
Nestl can trace its origins back to 1866, when the first European condensed milk
factory was opened in Cham, Switzerland, by the Anglo-Swiss Condensed Milk
Company. One year later, Henri Nestl, a trained pharmacist, launched one of the
worlds first prepared infant cereals Faring lacte in Vevey, Switzerland.
"Good Food, Good Life" is the promise they commit to everyday, everywhere to
enhance lives, throughout life, with good food and beverages.

Business of the Nestle

Nestle is the largest food company in the world. It is present in all five continents,
has an annual turnover of 74.7 billion Swiss Frances. There are 509 factories are
running in 83 countries, having 231,000 employs
Company Mission
At Nestle, they believe that research can help them to make better food, so
that people live a better life.
Good food is the primary source of good health, so they are trying to make
good food. To provide fresh and pure products to the customers, they
introduced (SHE) Safety, Health and environment policy to protect healt h of
their employs and keep clean their surrounding environment.
Company Vision
Vision of Nestle Milkpak Company is to expand business according to the
increasing demand of market.
As per their company vision in 2020 production capacity of all plants working in
Pakistan is being increased. So extension of Kabirwala Plant is the example of
their company vision.

Other Product of Nestle

INTRODUCTION TO MAGGI
Ever since its launch in India in 1983, this brand has become synonymous with
noodles. The bright red and yellow colours of the packet with the brilliant blue
2-minute Noodles printed on it has found a place on every kitchen. Over the
years, Maggi has grown as a brand and positioned itself as a Fast to cook!
Good to Eat! Food product.
The history of this brand traces back to the 19th century when industrial
revolution in Switzerland created factory jobs for women, who were therefore
left with very little time to prepare meals. Due to this growing problem Swiss
Public Welfare Society asked a miller named Julius Maggi to create a vegetable
food product that would be quick to prepare and easy to digest. Julius, the son
of an Italian immigrant came up with a formula to bring added taste to meals in
1863. Soon after he was commissioned by the Swiss Public Welfare Society, he
came up with two instant pea soups & a bean soup- the first launch of Maggi
brand of instant foods in 1882-83.Towards the end of the century, Maggi
company was producing not just powdered soups, but bouillon cubes, sauces
and other flavourings.
However in India (the largest consumer of Maggi noodles in the world!) it was
launched in 1980 by Nestle group of companies. Maggie had merged with
Nestle family in 1947. When launched it other competitor the so called home
made snacks which are till today considered healthy and hygienic. Hence to
capture the market it was positioned as a hygienic homemade snack, a smart
move. But still this didnt work, as it was targeted towards the wrong target
group, the working women. After conducting an extensive research, the firm
found that the children were the biggest consumers of Maggi noodles. Quickly a

strategy was developed to capture the kids segment with various tools of sales
promotion like pencils, fun books, Maggi clubs which worked wonders for it.
No doubt the ads of Maggi have shown a hungry kid saying Mummy bhookh
lagi hai to which his mom replies Bas do minute! and soon he is happily
eating Maggie noodles.
Further the MAGGI 2-MINUTE Noodles has been renovated to provide 20% of
the RDA1 of Calcium and Protein for the core target group building on the
nutrition proposition Taste bhi health bhi. The company could have easily
positioned the product as a meal, but did not, as a study had shown that Indian
mentality did not accept anything other than rice or roti as meal. They made it
a easy to cook snack that could be prepared in just two minutes. The formula
clicked well and Maggi became a brand name.

MARKET SEGMENTATION, TARGETING AND POSITIONING

OF MAGGI

Segmentation is the process of grouping people or organizations within a

market according to similar needs, characteristics, or behaviours.
Targeting is the actual selection of the segment you want to serve the target
market is the group of people or organizations whose needs a product is
specifically designed to satisfy
Positioning is the use of marketing to enable people to form a mental image
of your product in their minds (relative to other products)

Target segment of Maggi noodles

Maggi 2 Minute Instant Noodles is already associated with convenience and taste
and is currently accepted as a valid filling snack between meals. Maggi will
continue to leverage its brand equity and target the following segments for this
product.
Children and Teenagers: This is a large segment and is Maggis
stronghold. The age group between 4 and 14 years has largely similar
tastes and is traditionally targeted by Maggi. These segments perceive
Maggi instant noodles as a welcome change in taste from the regular
Indian fare and they are fascinated by the curly shaped noodles. For these
segments innovative products also have novelty value, however, certain
dominant preferences emerge. Realizing this early, Maggi shifted focus
from the lady of the house to the end consumer i.e. children themselves

ending up as the market leader of the instant noodles segment. Early buy
in of this segment will help Maggi to sell in other segments in future.

Studying Age: The studying age segment though not traditionally

targeted specifically has been devouring Maggi 2 minute noodles. The
proposition of convenience of cooking as well as that of a tasty filling
snack attracts this segment which due to erratic schedules keeps missing
their regular meals.
Office Goers and working women: The Company also targeted this
segment people because they were the one who needs refreshment time
to time because of hectic schedule and with would take their minimal
time. So by keeping this aspect into consideration, the company introduce
the Cuppa mania, which is a type of noodle which takes less time to cook
and satisfy the hunger as well.
Health Conscious People: The Company is also focusing on the heath
aspect. They introduce Veg atta noodle for health conscious people. So
they also launch Health Awareness campaign to educate consumers about
the benefits of health food. They also sponsor health camps, publish
health information and build awareness among the masses.

Positioning of Maggi
Maggi 2 Minute Noodles will continue with its current positioning of convenience
and as a fast to cook, good to eat snack as this seems to be working well.

To prevent Top Ramen, the main competitor, from eating into its market share
some product innovation is required as otherwise Maggi may get stereotyped as an
unexciting product. Top Ramen is following a cost differentiation technique.
To deal with this Maggi has to position itself as a differentiated product. The
market is very sensitive to taste and rejects any flavour it dislikes with Maggi
having learnt it the hard way, thus the product cannot be greatly differentiated with
on basis of taste.
On the other hand Maggi has to deal with the negative perception of Maggi has of
being unhealthy in an increasingly health conscious market, a major threat in the
current scenario.

Both these problems can be tackled by positioning Maggi as a snack with

nutritional value. The recent launch of Veg Atta Noodles and Dal Atta
Noodles with the promise of good nutritional value ventures in this area.

MARKETING MIX of MAGGI

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 VEGETABLE ATTA NOODLES:
MAGGI CUPPA MANIA
Maggi Oats Noodle(New).

 SOUPS:
Rich Tomato
Mixed Vegetable
Cream of Mushroom
Hot & Sour Vegetable
Sweet Corn Vegetable
Creamy Spinach AGGI HEALTHY
SOUPS

SAUCES:
MAGGI SAUCES:

The quintessential Rich Tomato Ketchup and Rich Tomato

Sauce (No Onion No Garlic)

The unique Hot & Sweet Tomato Chilli Sauce

The tangy and chatkaaredar Imli 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.
COOKING AIDS:
MAGGI MAGIC CUBES.
MAGGI BHUNA MASALA.
MAGGI COCONUT MILK PRODUCT
MAGGI PIZZA MAZZA.
MAGGI MASALA AE MAGGI:

PRICE OF MAGGI
Considering the price points in the market for Maggi, it should
continue to position itself in the snack category itself, since few
would be willing to accept it as a meal.
The company is taking no chances and is extending its distribution
reach to smaller towns and cities. Maggi happens to be Nestls
most widely distributed brand in the country. Through independent
channels, it reaches those villages where the company has no presence,
according to Hegde. This is also the time that Maggis value-formoney pack priced at Rs 5 is expected to come handy. (The regular
pack comes for Rs 10.)
Affordable by all income groups.

PLACE( DISTRIBUTION)
The distribution network is well spread.
Easily available in all retail stores.
Distribution channel PRODUCER - DISTRIBUTOR - RETAILER
CONSUMER

EXAMPLE OF MAGGI PLACE ( DISTRIBUTION)

PROMOTION OF MAGGI
They promote their product very effectively through television.
They have applied the strategy of brand extension.
They also sponsor various cookery shows to promote alternate usage of
products.
They also use strategy of free product samples to promote it.
Celebrity endorsements. Eg. Javed Jafferi, Madhuri Dixit.
Less promoted as compared to maggi.

No particular celebrity endorsement.

Maggi has faced lot of hurdles in its journey in India. The basic problem the
brand faced is the Indian Psyche. Indian Palate is not too adventurous in terms
of trying new tastes. That may be the reason why we are still stuck with Dal. So
a new product with a new taste that too from a different culture will have
difficulty in appealing to Indian market. Initially Nestle tried to position the
Noodles in the platform of convenience targeting the working women. But it
found that the sales are not picking up despite heavy promotion .Research then
showed that Kids were the largest consumers of the brand. Realizing this,
Nestle repositioned the brand towards the kids using sales promotions and smart
advertising. Now Indians are the largest eaters of Maggi Noodles in the world.
Maggi Noodles is a marketing success story.
During 1997 Maggi changed its formulation. It was during that time that Indo
Nissin - a Japanese company launched its Noodles brand "Top Ramen" with
lot of promotion and with SRK endorsing the brand. Top Ramen gave Maggi a

run for its money. The change in taste of Maggi was a mistake. The consumers
rejected the new taste of Maggi. And in 1999 Maggi relaunched Noodles with
the original taste. Nestle was ready to accept the consumers verdict and it paid
off handsomely. Top Ramen could not sustain the growth it had for long.
Maggi's campaigns were revolved around its "convenience to make and good
to eat " qualities. Ready in " 2 minutes " was a proposition that was well
received by the market. In 2005 Nestle made a very smart move. It knew that
although kids love noodles, the parents were bothered about the health aspect of
Noodles which was made of Maida. Hence Maggi launched Maggi Atta
Noodles with the baseline " taste bhi health bhi" .Reports suggest that after 10
months of the launch , the product has been well received by Indian consumers.
Maggi noodles is an example of a brand that knows the customer and willing to
learn from the mistakes.

STRATEGIES ADOPTED BY NESTLE MAGGI

Strong Customer Relations: The campaign designed by Nestl for Maggis
silver jubilee hopes to work on the brands strong consumer connect through
television, the Internet and print. The jingle gets a prominent play in the
television campaign. Nestl, Indias largest food products company, has
decided not to litter the sky with hoardings on the occasion. Instead, the ads
will play on nostalgia. Consumers who first sampled the brand as kids now
run households. The campaign seeks to strengthen the association.
Thus, customers will be invited to share their Maggi moments with the
company. If the company likes the way you prepare Maggi, you could find
your

photo

on

Maggi

packs.

new

website

called

www.meandmerimaggi.com is also in the works.

Good Packaging and Strong Dealer Vendor Relations: Convenience was

the unique selling proposition of Maggi when it was launched 25 years ago.
For the first time, consumers got something that was hygienically packed
and convenient to prepare. It was also the first fusion experiment on food in
India.
Continuous process innovation: Instant noodles was an entirely new
category in the country, but it was given an Indian twist. Maggi came in four
variants:Masala, chicken, sweet & sour and capsicum. Of these, only two
have survived masala and chicken which sells largely in the eastern
states.Masala continues to be the flagship flavour. In the days that followed,

it experimented with more variants, like a garlic- and onion-free one for
Gujarat.Some of these still exist, others were discontinued.

The turning point came in 2005, when Nestl came out with Maggi atta
(whole-wheat flour) instant noodles. All over the country, atta is considered
healthier than maida or refined flour which the company was using from day
one. This helped the company take the health platform, though Nestl
General Manager (food business) Shivani Hegde insists that the product
never ran the danger of being classified junk food. It was then that it added
the tagline, health bhi, taste bhi (health as well as taste).
Repositioning as a healthier snack: It is no longer an aspirational product
for any socio-economic category of consumers, says Hegde. That was also
the time when Nestl was repositioning itself worldwide as a health and
wellness

company.

At

the

grassroots

level,

Maggi

started

associating with quiz contests and other such events connected to mental and
physical wellbeing. This positioning gave Nestl the platform to launch
more products under the Maggi brand. It already had Maggi soups, sauces
and coconut milk in the market, but given the strong equity of the brand,
Nestl could now extend it to newer categories. Thus, it recently came out
with fried masala paste.
In 2008, two brand extensions Maggi Bhuna Masala and Maggi Cuppa
Mania

Instant Noodles .

Price Incentives: The company is taking no chances and is extending its

distribution reach to smaller towns and cities. Maggi happens to be Nestls
most widely distributed brand in the country. Through independent channels,

it reaches those villages where the company has no presence, according to

Hegde. This is also the time that Maggis value-for-money pack priced at Rs
5 is expected to come handy. (The regular pack comes for Rs 10.)
Capturing New Customer Base : Maggi realised that one of the reasons for
a low market share in Gujarat was that most of gujaratis do not eat garlic and
Onions so for Gujarat Maggi has come up with a special product which is
devoid of onions and garlic and marketed it as Jain Maggi. This helped them
gain a completely unconquered market of Jain Noodle eaters.
Maggi turns 25; Nestle comes up with new campaign: Nestle India is out
with a new marketing drive to mark the 25th anniversary this year of its
instant Noodles brand, Maggi Called Me & Meri Maggi, the campaign is
celebrating the consumers bond with Maggi. The company is doing360
degree activation across television, print and the internet, beside on-ground
activities. Nestle has also launched an interactive website for the consumers,
www.meandmeri.in.

The packaging has been tweaked to accommodate the pictures of consumers

whose entries the Company chooses. If a consumer has a story to tell
about Maggi will put him or her on the Packaging, TV or print.

SWOT Analysis for Maggi

STRENGTHS
--Market leader in the noodles category. Anytime anyone prefers Maggi as
noodles.
--It has a huge brand loyalty.
--It has developed the huge distribution channel network over thousands of
distributors, retailers etc. Hence Maggi is available in every shop right from
the supermarket till food malls.
--Innovative products for Indian taste buds such as Maggi, Maggi masala,
chicken maggi, tomato flavor which helped them grabbing more market as
customer needs variety and they loved those flavors as well.
--The advertising strategy for Maggi was a super hit as their tagline itself
was very effective and
grabbed the consumers mind.

WEAKNESS
--Generic Brand to Noodles in India
--Low rural market presence constraints
--Uniform Brand for all food category
--Brand Proliferation
OPPORTUNITIES:
--The greatest opportunity for the product Maggi is their
--Unexploited rural markets as so far they have mainly targeted cities and
developed areas.

--Number of youths working nowadays are increasing rapidly, so they can

open new branches and employ these people and increase production and
their by sales and profits by targeting rural markets.
--Increased affinity of Indians towards chinese cuisine creates new
opportunity for Maggi to improve its taste further and capture large market
share.
THREAT:
--Presence of regional competitors e.g Top Raman, Chings noodles.
--Price war strategies adopted by other brands like Top Raman.
--Competitors with long history in product category Internationally like,
Heinz Sauce and ketchups of Heinz Indian, Top Ramen in
Noodle and
--Knorr Soups.
--Single product focused competitors like Heinz sauce and Wai Wai
Noodles.
--Less Entry Barriers in the Market segment for product category
--ITCs strong base in Indian Market.
--Substitute Product to Product Segment.

Conclusion

Maggi though has been able to differentiate itself from other Noodles, Maggi
Being taken as generic to Noodles is hampering other extended product category.
Competitors have high grounds to capture the market differentiating then from
being Maggi. It makes others possible product category vulnerable if lunched
under Maggi. So to avoid proliferation of brand and introduce new products to
capture opportunities in other snacks and ready to eat product category NIL has to
introduce new branding strategy. By doing so, NIL could avoid the draw backs
associated with the Maggi brand. It could position new brand in competition with
other competitors brand where there is no fit of product with the Maggi brand.

Reference

http://www.nestle.in/brands/pdca/Pages/MAGGICUPPAMANIA.aspx
http://virtualaccuracy.com/2007/10/definition-of-marketing-mix-productprice-place-promotion/
http://www.managementstudyguide.com/marketing-mix.htm
http://www.maggi.in/maggi_multigrainz_noodles.aspx
http://www.maggi.in/two_minutes_maggi_noodles.aspx
http://www.maggi.in/vegetables_atta_noodles.aspx
http://www.maggi.in/cuppamania.aspx
www.maggi.in/maggi_multigrainz_noodles.aspx
http://www.maggi.in/range.aspx
http://www.nestleprofessional.com/unitedstates/en/BrandsAndProducts/Pages/default.as
px
http://www.maggi.in/maggi_multigrainz_noodles.aspx
http://www.maggi.in/two_minutes_maggi_noodles.aspx
http://en.wikipedia.org/wiki/Fast-moving_consumer_goods