Strategy of MAggi
Strategy of MAggi
ON
COMPLETE STRATEGY OF MAGGI
SUBMITTED TO
If words are considered as a symbol of token and appreciation then let words play their
heralding role of expressing my sincerest gratitude and thanks,
I am highly thankful to Dr. Maneeta Kahlon (Principal of GNKCW) for her complete
support. I wish to express my deep gratitude to Dr. Neetu Prakash for acting as a guide
and providing me with continuous support and guidance. This report could not have been
completed without the inputs and the words of advice from her for which I shall always
remain grateful to her.
I am highly thankful to all the people directly related and the students for being
cooperative without whose help this project would not have been proven meaningful.
Jasneet Kaur
TABLE OF CONTENTS
CHAPTER CONTENTS PAGE NO.
1. INTRODUCTION 1– 6
1.1 Brief profile of Maggi noodles 1
1.2 The various products of Maggi 2
1.3 Marketing strategy- company analysis details 3
1.4 Marketing strategy-creating, delivering, 4
communicating and capturing value
2. REVIEW OF LITERATURE 7–8
3. RESEARCH METHODLOGY 9 – 10
3.1 Objectives of the study 9
3.2 Descriptive research design 9
3.3 Sample design 9
3.4 Data collection 10
3.5 Analytical tools 10
3.6 Limitations of study 10
4. DATA ANALYSIS AND INTERPRETATION 11 – 24
5. CONCLUDING REMARKS 25 – 27
5.1 Findings 25
5.2 Suggestions 25
5.3 Conclusion 26
BIBLIOGRAPHY 28
ANNEXURE 29 – 30
CHAPTER – 1
INTRODUCTION
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
“2
Noodles” printed on it has found a place on every kitchen. Over the years, Maggi has
grown
rown 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
lit 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-
soup the first
launch of Maggi brand of instant foods in 1882
1882- 83.Towards the end of the century,
c
Maggi company was producing not just powdered soups, but bouillon cubes, sauces and
other flavourings.
1
1.2 THE VARIOUS PRODUCTS OF MAGGI
1 . Noodles
2. Sauces
•Teekha masala
•Tomoto chatpat
•Imli khata mitha
•Tomato ketchup
•Hot and sweet
•Tomato pudina
•Ginger, Garlic & Coriander
•Maggi Oriental Chilli Garlic
2
•Ginger, Garlic & Coriander
3. Soups Healthy
•mix veg
-Cream Mushroom
-Sweet Sour Tomato Noodles
-Tangy Tomato Vegetable
•Home Style
-Creamy Chicken
-Mixed Vegetable
-Rich Tomato
•Chinese Style
-Chinese Hot Sour Chicken
-Chinese Sweet Corn Chicken
-Chinese Sweet Corn Vegetables
-Chinese Hot & Sour Vegetables
Weakness
Generic Brand to Noodles in India
Low rural market presence constraints
3
Uniform Brand for all food category. Heavily dependent on one flavor
Opportunities
Growing package and canned food market in India by 15% annually.
High brand awareness of Indian consumer
Opportunity to be substitute to other snacks category of food products.
Unexploited rural market
Increasing number of working youth
Affinity of Indians to Chinese food Health related issues
Threats
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.
Les Entry Barriers in the Market segment for product category
ITC’s strong base in Indian Market.
Substitute Product to Product Segment
Competitive pricing
Strong presence of regional competitors
4
• promotions
Price
Considering the price points in the market for Maggi, it should continue to
position itself in the Snacks.
Affordable by all income groups
Differentiated packaging
Lower price point strategy
Mill pack for Rs.5 — targeting the lower middle class as well as those who want
to consume in lesser quantity.
Inflation effect on volume than price – Reduction of 100gm pack to 95gm,
keeping price as Rs. 10 only
Multi packs at cheaper price per noodles
Healthier products at higher price. Differentiated packaging.
Place
Wide distribution network.
Limited penetration in rural areas.
The company has a complex supply chain process.
Target hawkers/roadside eating joints
The distribution network is well spread
Easily available in all kirana stores, retail store etc.
Sales territories, Warehousing system
5
Product: -
Quality
Models and sizes
Packing
Brands
Service
Promotion: -
Nestle also followed up these launches with ‘It’s different’ ad campaigns.
Nestle was focusing their ads based on children’s taste and health.
In addition to promotional activities, Maggi associated itself with mainstream
television programme and advertised heavily on kids programme and channels.
Maggi is now targeting it products at the entire family and not only kids.
Maggi has recently launched “MAIN AUR MERI MAGGI” campaign in
commensuration of 25 years of Maggi in India.
6
CHAPTER-2
REVIEW OF LITERATURE
Mr. Rahul .M..Mhabde and Mrs. Rajeshri Soni (2017) in their research “Analytical study
on Consumer behavior towards “Maggi Instant noodle” in Mumbai –A post ban
Scenario” has discussed the perception of consumers post ban towards Maggi instant
noodles. How the consumers have reacted on the purchase of Maggie once it was
relaucned after a ban of few months.
Karthika Sajan (2016) in his study “A Study on the Customers Attitude towards the
Relaunch of Maggie Noodles in Ernakulam” talks about the consumers attitude towards
Maggie after its relaunch as controversies has hampered the image of Maggie in the inds
of the customers.
Dr. Bhanupriya Kharti (2015) “Customers Attitude and behavior towards instant noodles
especially Maggie in India” talks about the price, ease new favour and variants of instant
noodles had made a place of its own in every Indian kitchen and how these products are
consumed by all category of people irrespective of their gender and age.
Shabista Booshan & Rittika Das (2016) A Research Paper On The Maggi Muddle Case
and Its Impact on The Psyche Of The Indian Consumers (18 To 24 Years), the
researchers talk about the journey of Maggi in India over the last 33 years and how
Maggi pioneered and became the leader in the Instant Foods Category. They further
stress on the strategic marketing techniques, in-depth market analysis, and the ability to
7
maintain strong stakeholder relationships contributed towards boosting the brand’s
growth.
Nitin J. Maniyal and Dr. M. M. Munshi (2015) “Impact of Maggie Noodles on Youth”
states that the youth of the 21st century are inclined towards the junk food, the food that
is tasty and easy to make although knowing its ill effects and its impact on health. After
Maggi Noodles was banned across the country and Nestle India Ltd withdrew stocks the
study attempts to identify the various different factors that have an impact on the youth.
8
CHAPTER – 3
RESEARCH METHODOLOGY
3.1 OBJECTIVES OF THE STUDY
• To analyse the consumer preference regarding maggi.
• To analyse various factor due to which people eat maggi.
• To study which product of maggi satisfy the consumer needs the most.
• To identify the factors that can easily differentiate between maggi noodles and other
brand noodles.
9
3.4 DATA COLLECTION
Data collection is the basic step and and vital importance on which authentic of study
depend. before going for the study the researcher have to collect the appropriate data
required for the study. Source of allocation of data are of two types.
Primary data :- primary data is as this data is not present in present in reports or journals
etc. and is collected through a number of methods used:
Personal interview, e- mails, Observations, Questionnaires & Interview.
Secondary Data:- secondary data is collected from the sources such as: books, journals,
rating organization, census department etc. the secondary data is readily available and
therefore is less costly and less time consuming .sources of secondary data are Internet,
Books and journals, Company reports & Research work.
10
CHAPTER – 4
DATA ANALYSIS & INTERPRETATION
1. Do you purchase ready to eat products available in the market?
PARTICULARS FREQUENCY PERCENTAGE
Yes 30 100%
No 0 0%
NUMBER OF RESPONDENTS
YES
NO
Interpretation
From the above table it can be inferred that100% of the respondents prefer ready to eat
products available in the market.
11
2. Are you a consumer of Maggi?
30
25
20
15
NO
10
YES
0
YES NO
Interpretation
As per the study it is clear that 100%
% of the respondents are consumers of Maggi and no
one customer who do not prefer Maggi.
12
3. If yes, which Maggi products in noodles category do you regularly buy?
NUMBER OF RESPONDENTS
MAGGI MASALA
MAGGI VEG AATA NOODLES
MAGGI CUPPA MANIA
OTHERS
Interpretation
From the above pie chart, it can be concluded that 93% of the respondents regularly buy
Maggi masala noodles, 2% of therespondents buy Maggi veg aata noodles, 3% buy
Maggi cuppa mania and 1% buys others. it can have interpreted that Maggi masala
noodles are
re frequently consumed by the respondents.
13
4. How long have you been buying noodles?
PARTICULARS NUMBER PERCENTAGE
From childhood 23 93%
Since 10 years 3 3%
Since 5 years 2 2%
Since 2 years 2 2%
Interpretation
As per the questionnaire circulated it is seen that 93% of the respondents are buying
Maggi noodles from their childhood and rest of them are buying since 10 years, 5years
and 2years respectively.
14
5. According to you which age group prefers Maggi most?
20
18
16
14
12 4-- 12
10 13-26
8 27-40
6 41-above
4 41-above
2 27-40
0 13-26
4-- 12 4-- 12
13-26
27-40
41-above
Interpretation
From the study it can be concluded that 44-12 age groups prefer Maggi most.
15
6. What is the frequency (by family) of its consumption in your routine?
Once in week 2 2%
occasionally 22 92%
25
20
once a day
15
twice a week
once in two days
10
once in 2 or 4 days
once in week
5 occasionally
0
once a day twice a once in once in 2 once in ocasionally
week two days or 4 days week
Interpretation
According to the current survey, the frequency of buying Maggi noodles has come down
i.e. 92% of the respondents buy Maggi noodles occasionally and rest buy Maggi noodles
once a day, 2% of the respondents buy once in a week and so on.
16
7. Your comment on prices of Maggi product?
30
25
20
affordable
15
high
10 low
5 low
high
0
affordable
affordable
high
low
Interpretation
As per the study it can be inferred that 97% of the respondents are satisfied about price of
Maggi noodles. 1% of the respondents feel that price of Maggi is high and 2% ofthe
respondents feel that price of Maggi is low and remaining fee
feels
ls that it is high.
17
8. How do you perceive Maggi products?
18
16
14
12
10
good for health
8
ready to eat
6
junk food
4 tasty/fun eating
0
good for health ready to eat junk food tasty/fun eating
Interpretation
From the above bar diagram, it can be highlighted that 87% of the respondents perceive
Maggi products as ready to eat product.
18
9. You came to know about Maggi from?
NUMBER OF RESPONDENTS
newspaper
radio
television
friends
others
Interpretation
As per the study it is shows that 95% of the respondents know aboutMaggi through
television, 2% of the respondents know through newspaper, other 2% of the respondents
know through friends and remaining 1% of the respondents know through radio.
19
10. Does the celebrity
lebrity endorsement prompt you to purchase Maggi?
100%
90%
80%
70%
60%
50%
Series 2
40% Series 1
30%
20%
10%
0%
yes
no
Interpretation
According to current survey it can be concluded that 93% of the respondents are not
influenced by celebrity endorsement, only 9% of them are attracted due to celebrity
endorsement.
20
11. Which advertisement of Maggi influenced you to purchase Maggi after its ban?
20
18
16
14 welcome back maggi
12
10 khusiyon ki reciepe mom's
maggi
8
6 I miss you maggi come back
soon
4
meri maggi
2
0
welcome khusiyon ki I miss you meri maggi
back maggi reciepe maggi come
mom's maggi back soon
Interpretation
As per the questionnaire circulated it is clear that 88% of the respondents get influenced
by the advertisement Khusiyon ki recipe mom’s Maggi,7% of the respondents by Meri
Maggi,3% of the respondents by welcome back Maggi and 2% of therespondents I miss
you Maggi come back soon.
21
12. Do you think attractive advertisement help Maggi to increase the sales?
30
25
20
no
yes
15
10
0
yes no
Interpretation
From the study it can be inferred that 96% of the respondents think attractive
advertisement helps Maggi to increase its sale, 4% of the respondents think that attractive
advertisement does not help Maggi to increase its sale.
22
13. Rate the satisfaction level considering all aspects of Maggi noodles?
20
18
16
14
12 poor
below average
10
fair
8 good
6 very good
0
very good good fair below average poor
Interpretation
According to the study it can be concluded that 87% of the respondents arehighly
satisfied,6% of them rated it as fair and remaining 3% rated it as very good and poor
respectively.
23
14. Any suggestions and other improvement would like to suggest?
NUMBER OF RESPONDENTS
Interpretation
As per the suggestions given by the respondents it is found that 88% of the respondents
have suggested to sell healthy and tasty Maggi, 5% suggested to sell Maggi without lead
,5% suggested that Maggi should be good in advertising its products and 2% suggested
that it should be banned again by the government.
24
CHAPTER – 5
CONCLUDING REMARKS
This chapter gives in detail major findings of the study followed by suggestions.
5.1 FINDINGS
The study shows that consumers want maggi to be in the market and they are willing to
buy the same in the future only if they include ingredients which are good for health of
the consumers. Maggi instant will be able to win the customers back and will be able
regain its position in the market only and only if they prove that ingredient does not harm
the health of the consumers.
• Most of the respondents prefer ready to eat product available in the market.
• From the study it is found that 93% of respondents buy Maggi masala noodles regularly
because consumers feel that Maggi masala noodles is tastier than other variants of Maggi
noodles.
• Through the research analysis it is found that 93% of the respondents buy Maggi noodles
since their childhood.
• Maggi noodles are mostly preferred by kids, college students and adults.
• Frequency of consumption of Maggi noodles has come down due to the health issues.
• Consumers are comfortable with the price of the Maggi noodles as it is affordable.
• 95%of the consumers came to know about Maggi noodles
• It is found that attractive advertisements help Maggi to increase its sales.
• Nestle is targeting mainly on emotional attachments of consumers to relaunch Maggi
noodles in the market.
• 95%of the consumers think that fame of nestle company has come down after Maggi
ban.
5.2. SUGGESTIONS
• Focus on creating distinctive image, based on twin benefits of “INSTANT” and
“HEALTHY” with emphasis on health conscious.
25
• Conduct promotional campaigns at schools in small towns with population more than
10,000 to regain position in market.
• Strengthen the distribution channel of the rural areas within 100 km of all the metros
• Company should concentrate more on television for advertisement, as mostly people get
attracted through television only.
• The company should advertise its products by depicting attributes related to health like
nutrition values, % of vitamins, proteins, etc. this would help customers in perceiving the
product as healthy.
• To gain maximum leverage in terms of profit the company should pay emphasis on
segments with age groups 25-35 and above. Targeting these segments will not only
enhance the company’s profit margin but also it wills leverage the brand image of Maggi.
5.3 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
then 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 pickle
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 paralle 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 a free sampling campaign. This helped Maggi
to win back its lost consumers and pushed up its sales volumes again.
26
Nestlé’s wise decision of merger with Maggi, made it pioneer in the packaged food
industry, specifically in India. Ease of preparing yummy dishes instantly made it the first
choice and preference for all the kids and their mummas as well. Maggi’s consistent
quality, continued innovations, skill to identify the needs of society have allowed it to
grab 90% of market share today, in instant food products LOB. Maggi has continuously
been expanding its product line, which leaves behind the image of so called “One product
concentrated Brand” and hence less fear of being thrown out over night. Maggi has won
the King Position by its highly focused
27
BIBLIOGRAPHY
• Anubhav Anand Mishra (March, 2010), “Factors affecting customer satisfaction and their
relative importance the retail banking sector”. An empirical study. The IUP Journal of
Management Research, Vol IX No. 03, March 2010, Pg. – 6 - 23
• Cardozo R n (1965), “An experimental study of customer effort, expectation and
satisfaction”, Journal of Marketing Research, Vol. 2 No.3 Pg. 244 – 249
• Dabholkar P A (1995), “A contingency framework for predicting causalities between
customer satisfaction and service quality”, Advances in Consumer Research, Vol. 22 Pg.
101 – 108
• Howard J A and Sheth J N (1969), “The theory of buyer behaviour, John Willey and
sons, New York.
• Meidan A (1996), Marketing financial services, MacMillan Press, Houndmills.
• Oliver R L and Swan J E ()1989), “Consumer perception of interpersonal equity and
satisfaction in transaction: A field survey approach”, Journal of Marketing Vol. 53, April
.Pg. 21 – 35
• Mick D G (1999), “ Rediscovering satisfaction “, Journal of Marketing, Vol 63, No. 4,Pg
5 – 23
• College library books
• Journals
• Magazines
• www.nestle.com
28
ANNEXURE
• Name __________________________
• Gender ___________
• Age ___________
29
8. How do you perceive Maggi products?
a) Good for health b) Ready to eat
c) Junk food d) Tasty\fun eating
9. You came to know about Maggi from?
a) Newspaper b) Radio
c) Television d) Friends
e) Others
10. Does the celebrity endorsement prompt you to purchase Maggi?
a) Yes b) No
11. Which advertisement of Maggi influenced you to purchase Maggi after its ban?
a) Welcome back-Maggi
b) Khusiyon ki recipe # mom’s Maggi
c) I miss you Maggi come back soon
d) Meri Maggi
12. Do you think attractive advertisement helped Maggi to increase the sales?
a) Yes b) No
13. Do you think Maggi is regaining its position with the help of online advertising?
a) Yes b) No
14. Rate the satisfaction level considering all aspects of Maggi noodles?
Very good
Good
Fair
Below average
Poor
30