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INTRODUCTION
The industrial revolution in Switzerland in the late 1800s created factory jobs
for women, who were therefore left with very little time to prepare meals. This
wide spread problem grew to be an object of intense study by the Swiss Public
Welfare Society. As a part of its activities, the Society asked Julius Maggi
miller to create a vegetable food product that would be quick to prepare and
easy to digest. Born on October 9, 1846 in Frauenfeld, Switzerland, Julius
Michael Johannes Maggi was the oldest son of an immigrant from Italy who
took Swiss citizenship. Julius Maggi became a miller and took on the
reputation as an inventive and capable businessman. In 1863, Julius Maggi
came up with a formula to bring added taste to meals. Soon after he was
commissioned by the Swiss Public Welfare Society, he came up with two
instant pea soups and a bean soup - the first launch of the Maggi brand of
instant foods in 1882 - 83. Towards the end of the century, Maggi & Company
was producing not just powdered soups, but bouillon cubes, sauces and other
flavourings. The Maggi Company merged with Nestl in 1947. Today, Maggi is
a leading culinary brand and part of the NESTL family of fine foods and
beverages. Under the Maggi brand, which is today known world wide for
quality and innovation, Nestle offers a whole range of products, such aspackaged soups, frozen meals, prepared sauces and flavourings.
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INDUSTRY PROFILE
Nestle India is a subsidiary of Nestle S.A. of Switzerland. Nestle India
manufactures a variety of food products such as infant food, milk products,
beverages, prepared dishes & cooking aids, and chocolates & confectionary.
Some of the famous brands of Nestle are NESCAFE, MAGGI, MILKYBAR,
MILO, KIT KAT, BAR-ONE, MILKMAID, NESTEA, NESTLE Milk, NESTLE
SLIM Milk, NESTLE Fresh 'n' Natural Dahi and NESTLE JEERA,RAITA.
Nestle was founded in 1867 in Geneva, Switzerland by Henri Nestle. Nestle's
first product was "Farine Lactee Nestle", an infant cereal. In 1905, Nestle
acquired the Anglo-Swiss Condensed Milk Company. Nestle's relationship
with India started 1912, when it began trading as The Nestle Anglo-Swiss
Condensed Milk Company (Export) Limited, importing and selling finished
products in the Indian market.
After independence, in response to the then economic policies, which
emphasized local production, Nestle formed a company in India, namely
Nestle India Ltd, and set up its first factory in 1961 at Moga, Punjab, where theGovernment wanted Nestle to develop the milk economy. In Moga, Nestle
educated and advised farmers regarding basic farming and animal husbandry
practices such as increasing the milk yield of the cows through improved dairy
farming methods, irrigation, scientific crop management practices etc. Nestle
set up milk collection centres that ensured prompt collection and paid fair
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prices. Thus, Nestle transformed Moga into a prosperous and vibrant milk
district. In 1967, Nestle set up its next factory at Choladi (Tamil Nadu) as apilot plant to process the tea grown in the area into soluble tea. Nestle opened
its third factor in Nanjangud (Karnataka) in 1989. Thereafter, Nestle India
opened factories in Samalkha (Haryana), in 1993 and two in Goa at Ponda,
and Bicholim in 1995 and 1997 respectively. Nestle India is now putting up the
7th factory at Pant Nagar in Uttarakhand. Today, Nestle is the world's largest
and most diversified food company. It has around 2,50,000 employees
worldwide, operated 500 factories in approximately 100 countries and offers
over 8,000 products to millions of consumers universally.
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MISSION STATEMENT
At Nestl, we believe that research can help us make better food so thatpeople live a better life.
Good Food is the primary source of Good Health throughout life. We strive tobring consumers foods that are safe, of high quality and provide optimalnutrition to meet physiological needs. In addition to Nutrition, Health andWellness, Nestl products bring consumers the vital ingredients of taste and
pleasure.As consumers continue to make choices regarding foods and beverages they
consume, Nestl helps provide selections for all individual taste and lifestylepreferences.
Research is a key part of our heritage at Nestl and an essential element ofour future. We know there is still much to discover about health, wellness andthe role of food in our lives, and we continue to search for answers to bringconsumers Good Food for Good Life.
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VISION STATEMENT
Nestles Vision: At Nestl, we believe that research can help us make better
food so that people live a better life. Good Food is the primary source of Good
Health throughout life. We strive to bring consumers foods that are safe, of
high quality and provide optimal nutrition to meet physiological needs. Inaddition to Nutrition, Health and wellness, Nestl products bring consumers
the vital ingredients of taste and pleasure. As consumers continue to make
choices regarding foods and beverages they consume, Nestl helps provide
selections for all individual taste and lifestyle preferences. Research is a key
part of our heritage at Nestl and an essential element of our future. We know
there is still much to discover about health, wellness and the role of food in our
lives, and we continue to search for answers to bring consumers Good food
for good life.
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VALUES OF NESTLE
The Nestl cultureApart from its commitment to safety and quality and its respect for
diversity, Nestl is committed to a number of cultural values. These
values come partly from its Swiss roots and have been developed
during its history. They are also evolving so as to support the
permanent reshaping of the Company. They can be described as
follows:
Commitment to a strong work ethic, integrity, honesty and quality.
Personal relations based on trust and mutual respect. This implies
a sociable attitude towards others, combined with an ability to
communicate openly and frankly.
A personalised and direct way of dealing with each other. This
implies a high level of tolerance for other ideas and opinions, as well
as a relentless commitment to co-operate proactively with others.
A more pragmatic than dogmatic approach to business. This
implies being realistic and basing decisions on facts.
Openness and curiosity for dynamic and future trends in
technology, changes in consumer habits, new business ideas and
opportunities, while maintaining respect for basic human values,
attitudes and behaviour.
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Pride in contributing to the reputation and the performance of the
Company. This calls especially for nurturing a sense of quality and
long-term achievement in the daily work beyond fashion and short-
sighted gain.
Loyalty to and identification with the Company.
High commitment to quality products and brandsWorried by the high level of infant mortality at that time and relying
on scientific research, the Company founder, Henri Nestl, created a
revolutionary product, Farine Lacte Nestl(Nestl Milk Cereal),
which has helped to savethe lives of many children the world over.
Nestls coat of arms, the birds nest, which refers to his name, has
become a symbol for our products being a safe harbour for our
consumers.
Ever since, product safety and quality, Research & Development
based innovation capacity and strong brands are a priority for
Nestl.
Respect of other cultures and traditionsFrom its inception, Nestl developed its business internationally and
became aware of the fact that food products have to be closely
linked to
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local eating and social habits. That is why Nestl from the very start
has
always shown respect for diverse cultures and traditions. Nestl
endeavours to integrate itself as much as possible into the cultures
and
traditions where it is present, adding also to the
local environment its own set of values laid out in this document.
Therefore, Nestl embraces cultural and social diversity and doesnot
discriminate on the basis of origin, nationality, religion, race, gender
or age.
Furthermore, Nestl believes that its activities can only be of long-
term benefit to the Company if they are at the same time beneficial
to the local community. In short, global thinking and strategies canbest be expressed through local action and commitment.
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PRINCIPLES OF NESTLE
GENERAL PRINCIPLES
Nestl is more people, product and brand oriented than systems
oriented. While systems are necessary, they should never be an end
in themselves. Nestl favours long-term successful business
development and endeavours to be a preferred Company for long-
term oriented shareholders. However, Nestl does not lose sight of
the necessity to improve short-term results and remains conscious
of the need to generate a sound profit each year. Nestl seeks to
earn consumers confidence and preference and to follow and
anticipate consumer trends, creating and responding to demand for
its products. Therefore Nestl is driven by an acute sense of
performance, adhering to and favouring the rules of free competition
within a clear legal framework. Nestl is conscious of its social
responsibility, which is inherent in its long-term orientation. Nestl is
as decentralised as possible, within the framework imposed by
fundamental policy and strategy decisions requiring Increasing
flexibility. Operational efficiencies, as well as the group-wide need
for alignment and people development, may also set limits to
decentralisation. Nestl is committed to the concept of continuous
improvement of its activities, thus avoiding more dramatic one-time
changes as much as possible.
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MAGGI BRAND IN INDIA
Maggi Comes to India teething troubles Maggi noodles was launched in
India in the early1980s. Carlo M. Donati, the present Chairman and Managing
Director of Nestle India Ltd, brought the instant noodle brand to India during
his short stint here in the early eighties. At that time, there was no direct
competition. The first competition came from the ready-to-eat snack segment
which included snacks like samosas, biscuits or maybe peanuts, that were
usually the bought out type. The second competition came from the
homemade snacks like pakoras or sandwiches. So there were no specific buy
and make snack! Moreover both competitors had certain drawbacks in
comparison. Snacks like samosas are usually bought out, and outside food is
generally considered unhygienic and unhealthy. The other competitor,
homemade snacks overcame both these problems but had the disadvantage
of extended preparation time at home. Maggi was positioned as the only
hygienic home made snack! Despite this, Nestl faced difficulties with their
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sales after the initial phase. The reason being, the positioning of the product
with the wrong target group. Nestle had positioned Maggi as a conveniencefood product aimed at the target group of working women who hardly found
any time for cooking. Unfortunately this could not hold the product for very
long. In the course of many market researches and surveys, the firm found
that children were the biggest consumers of Maggi noodles. Quickly they
repositioned it towards the kids segment with various tools of sales promotion
like colour pencils, sketch pens, fun books, Maggi clubs which worked
wonders for the brand.
Why the specific Brand positioning?
Maggi was positioned as 2-minute noodles with a punch line that said Fast to
cook! Good to eat! And this gave the implied understanding to the consumer
that it was a between meals snack. The company could have easily
positioned the product as a meal, either lunch or dinner. But, it chose not to do
so, because the Indian consumer mindset did not accept anything other than
rice or roti as a meal. Hence trying to substitute it with noodles would have
been futile. The firm did not position it as a ready-to-eat meal either, as thehousewife prefers to make a meal for her kids rather than buy it for them. And
if she can make it in two minutes with very little effort, then obviously its a hit
with her! Whats more, if kids also love the taste, the product is as good as
sold! So the 2-minute funda coupled with the yummy taste worked!
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BRAND STORY
Launched in 5 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 food market was very small
at this time, Nestle had to promote noodles as a concept, before it couldpromote 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 awreness. In the initial
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years, Nestle promotional activities for Maggi included schemes offering
gifts( such as toys and utensils) in return for empty noodles pack.
According to analysits the focus on promotion turned out to be the single
largest factor responisible for Maggis rapid acceptance. Nestle\s Managers
utilized promotions as measured to meet their sales target. Gradually, sales
promotion became a crutch for Maggi noodles sales. Later many of the
Maggis extensions also made considerable use of promotional schemes. The
focus of all Maggis extensions was more on below the line activities rather
than direct communication. In addition to promotional activities, Maggi
associated itself with main stream television programme and advertised
heavily on kids programme and channels. After its advertisements with
taglines like mummi bhookh lagi hai, bas do minute and fast to cook good to
eat Maggis popularity became highly attributed to its extremely high appeal
to children. As a result, Maggis annual growth reportedly touched 15% during
its initial years.
Maggis Brand Extension:
In 1998, Nestle launched Maggis first brand extension, Maggi soup. At this
stage, There was no organized packaged soup market in India. Nestle
planned to create a market for packaged soup as it felt the category had a lot
of potential. However, according to analyst, the company had introduced
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soups only to cash in on the Maggis brand name, and was never very serious
about the segment.
In 1993, Sweet Maggi, the first variant of Maggi noddles was launched. The
company supported the launch with a huge advertisement outlay that
amounted to 75% of the total yearly expenditure on the Maggi brand.
However, the product failed to generate the desired sales volume and Nestle
was forced to withdraw it. At the end of the year, Maggi noodles was
generating sales volume of around 5000 tons and remained a loss making
proposition for Nestle.
To boost sales, Nestle decided to reduce the price of Maggi noodles. This was
made possible by using thinner and cheapeer packaging material, the
company also introduced money saver multi packes in the form of 2-in-1
pack and 4-in-1 packs. As a result volume increases phenomenally to 9700
tonnes in 1994 and further to 13000 tonnes in 1995. Maggis euphoroia was,
however, short lived, as sales stagnated in 1995 at the previous years level.
With soup business being threatned by a new entrant Knorr soups launched
in 1995, offering 10 flavors against Maggis 4 the company started rethinking
its strategies towards the soup market.
In order to stretch Maggis brand to include Indian ethenic foods the company
tied up with a Pune based chordia foods to launch pickles under the year
1995. The company also tied up with Indian foods fermentation (IFF), a
Chennai based food company to market popular south Indian food preparation
such as sambher, dosa, vada and spices in consumer packs in Dec 1995. The
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company reportedly saw a lot of untabbed potential in the market for ready to
use south Indian market.
In 1996, products from these two ventures received lukewarm response from
the market; sales were rather poor in the regions in which they were launched.
Analysts attributed the failure of these Maggi extensions to the fact that Nestl
seemed to be particularly bad at dealing with traditional Indian product
categories. Maggi noodles performed badly in 1996. Despite slow sales in the
previous two years, Nestl had set a sales target of 25,000 tonnes for the
year. However, Maggi couldnt cross even 14,000 tonnes. Adding to the
company woes was the failure of Maggi Tonites Special, a range of cooking
sauces aimed at providing restaurant-like-taste to food cooked at home. The
range included offerings such as Butter Chicken gravy and tomato sauce for
pizzas.
Understanding these failures, and buoyed by the fact that the Maggi brand
finally broke even in 1997, Nestl continued to explore new options for
leveraging on the brand equity of Maggi noodles. The company realized that
the kids who had grown up on Maggi noodles had become teenagers by the
late 1990s. As they associated the product with their childhood, they seemed
to be moving away from it. To lure back these customers and to explore newproduct avenues, Nestl launched Maggi Macaroni in July 1997. According to
analysts, Maggi Macaroni was launched partly to deal with the growing
popularity of competing noodles brand Top Ramen. Maggi Macaroni was
made available in three flavors, Tomato, Chicken, and Masala. The company
expected to repeat the success of Maggi noodles with Maggi Macaroni. As
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with most of its product launches, Maggi Macaronis launch was backed by a
multi-media advertisement campaign including radio, television, outdoors andprint media with the tagline, Tum Roz Baby.
The products pricing, however, proved to be a major hurdle. A 75-gm Maggi
Macaroni pack was priced at Rs 11, while a 100-gm noodles pack was
available at Rs 9. According to analysts, Nestl failed to justify this price-value
anomaly to customers, who failed to see any noted value addition in Maggi
Macaroni (packaging and flavour variants were similar to those of Maggi
noodles). In addition, customers failed to see any significant difference
between Maggi Macaroni and the much cheaper macaroni that was sold by
the unorganized sector players. The biggest problem however was the taste of
the new product. Since macaroni is thicker than noodles, Maggi Macaroni did
not absorb the tastemaker well and consequently did not taste very good. The
interest generated by the novelty of the product soon died out and sales
began tapering off. Eventually, Nestl had to withdraw Maggi Macaroni
completely from the market.
Nestl had not even recovered from Macaronis dismal performance, when it
learnt to its horror that Knorr had dethroned Maggi as the leader in the soup
segment (end of 1997). The only saving grace for Maggi seemed to itsketchups and sauces, which were turning out to the rare successful
extensions of Maggi. These products were supported by a popular
advertisement campaign for the Maggi Hot & Sweet sauce brand. These
humorous advertisements, featuring actors Pankaj Kapoor and Javed Jafri,
used the tagline, Its different. However, during mid-1997, HLL began
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promoting its Kissan range of sauces aggressively and launched various
innovative variants in the category.
Nestl responded with a higher thrust on advertising and different size packs
at different price points. Though Kissan gained market share over the next few
years, Maggi was able to hold on to its own market share. Meanwhile the
operational costs of Maggi noodles had increased considerably, forcing the
company to increase the retail price. By early 1997, the price of a single pack
had reached Rs 10. Volumes were still languishing between 13,000-14,000
tonnes.
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Pricing and Product Development:
It was at this point in time that Nestl decided to change the formulation of
Maggi noodles. The purpose was not only to infuse fresh life into the brand,
but also to save money through this new formulation. The company used new
noodle-processing technology, so that it could air-dry instead of oil-fry the
noodles. The tastemakers manufacturing process was also altered. As a
result of the above initiatives, costs reportedly came down by 12-14%. To
cook the new product, consumers had to add two cups of water instead of
one-and-a-half cups. The taste of the noodles was significantly different from
what it used to be. The customer backlash that followed the launch of the new
noodles took Nestl by surprise. With volumes declining and customer
complaints increasing, the company began to work on plans to relaunch old
Maggi to win back customers. In addition, in 1998, Nestl began working out
a strategy to regain Maggis position in the soup segment. To counter the
Knorr threat, the company relaunched Maggi soups under the Maggi Rich
brand in May 1998. The soups were not only thicker in consistency than those
produced earlier, the pricing was also kept competitive and the packaging wasmade much more attractive. However, Knorr took Nestl by surprise by
launching one-serving soup sachets priced as low as Rs 4. HLL too launched
two-serving sachets of Kissan soup priced at Rs 7. As Maggi did not have any
offerings in this price-range, it lost a huge portion of its market share to Knorr.
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The relaunch prompted market observers to compare Nestls move with US
soft drinks major Coca-Colas New Coke fiasco. However, the companydisagreed, Its a hard-5 nosed strategy, that mixes nostalgia with the
consumers voiced preference for the product it has been bred and rought up
on. The reintroduction is Nestls acknowledgement of the loyalty of the Indian
mother and the child to the original product. By May 1999, Nestls decision
to bring back the old Maggi seemed to have paid off. Two months after the
relaunch, the monthly average sales of Maggi noodles n the northern region
rose 50% in comparison to the previous year. In July 1999, Maggi the brand,
was promoted as the biggest brand in Nestls portfolio of brands in India,
overtaking brands such as Nestum and Cerelac. Nestl believed that Maggi
had immense potential as it was a very flexible brand under which regional
variants could be introduced to meet various market needs. Company sources
claimed that with reasonable price points and innovative products, Maggi
could emerge as a top brand and a major growth driver for the company. To
further support the brand, Nestl carried out various promotional activities as
well. These included the August 1999 Fun-Dooz campaign and Jungle
Jackpot campaigns. 6 As a result of the above initiatives, Nestl claimed to
have cornered an 81% market share of the 20,000 tonnes noodles market by
the end of 1999. Nestl sources claimed that Maggi noodles outsold the
competition four times over and that more than four Maggi noodle cakes wereconsumed every second in the country
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PRODUCT VARIENTS
The product mix of Maggi is divided into various categories defined below. The
company has launched various products under each category as mentioned
below.
1.Noodles
Maggi 2 min noodle(Masala chicken, Curry and Tomato)
Maggi Dal Atta Noodles ( Sambhar taste)
Vegetable Atta Maggi Noodles
Maggi Rice Noodles (Lemon Masala, Chilly Chow and Shahi Pulao)
Maggi Cuppa mania (Masala yo, Chilli chow yo)
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2. Sauces
Teekha masala
Tomoto chatpat
Imli khata mitha
Tomato ketchup
Hot and sweet
Tomato pudina
Ginger, Garlic & Coriander Maggi Oriental Chilli Garlic
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3. Maggi Pichko
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4. Soups Healthy
Chef Style
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Cream Mushroom
Sweet Sour Tomato Noodles Tangy Tomato Vegetables
Home Style
Creamy Chicken
Mixed Vegetable
Rich Tomato
Chinese Style
Chinese Hot Sour Chicken
Chinese Sweet Corn Chicken
Chinese Sweet Corn Vegetables Chinese Hot & Sour Vegetables
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5.Maggi soup sanjivni
Amla
Badam Spinach
Dal
Tomato
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6. Maggi bhuna masala
Bhuna masala for gravy dishes
Bhuna masala for vegetable dal
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7.Maggi magic cubes
Chicken
Vegetarian masala
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RESEARCH METHODOLOGY
OBJECTIVES
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To understand the influence of Maggi as a brand on consumers mind
set.
Sources of Brand equity of Maggi like Brand awareness, Brand image,
Brand association, Brand recall.
To understand the Brand performance of Maggi products.
To understand Brand Imagery, Brand Quality perceived by customers,
Brand credibility, consideration, superiority and feelings.
Brand Extension of Maggi in terms of product diversity.
Analyse the repositioning of Maggi brand as a Healthy product and the
consumers perseverance towards the same.
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DATA COLLECTION PLAN
Data Gathering:
This study involves data collection (primary research) from different
households in delhi.
Literature Review:
The research conducted as a part of our study would include Primary as well
as Secondary research.
Primary research would include a survey that would be conducted in
selected localities of Delhi where the responses of consumers would berecorded through a designed questionairre.
Secondary research would include various aspects of Brand
management through Internet , Journals, company reports etc.
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METHODOLOGY
This research will be carried out in the form of a survey. This will include
primary research in addition to secondary research as stated below. Thesurvey research method will be descriptive research design. Each respondent
will be interviewed through a Questionnaire. The sample will be selected by a
simple random sampling method.
The survey will address the following information area:
Information Areas:
The objective as spelt out can be elaborated into specific information areas to
be studied.
How do customers perceive Maggi as a stable brand, their perception of
noodles and how do they associate themselves with Maggi?
Are the consumers aware of Maggi Brand or they associate noodles with
some other brand?
Do they consider noodle as a healthy product or they are aware of the
companys strategy of repositioning it to a healthy product by the launch
of some of the new products?
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Which product from the entire basket of Maggi products do the
consumers consider as the best selling product for Maggi and to whichthe consumers frequently buy?
Are the consumers willing to accept Maggi brand extensions to some
other products like chocolate, juices, chips etc?
RESEARCH PLAN
Research Design:
The research will be carried out in the form of a survey which will be done in
Delhi (NCR region). The population has been segmented on the basis of
salary Group and Age Group.
Sample Design:
The target population for our study is households. The sample will be selected
by a simple random sampling method .
Sample Size:
The sampling unit is 150 which are divided as follows:
Number ofrespondents
150
Age-group 10 - 45Monthly HouseholdIncome 25000 - 75000 INR
Survey Locations Delhi
Salary GroupNoincome
25K -40K
40K -60K
60K -75K
Number of Respondents 30 50 70
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Age Group 10 - 25 25 - 35 35 45Number of Respondents 50 50 50
LIMITATIONS:
The present study is confined to a minimal sample size and may not
reflect the opinion or response of the entire population in general.
The results of our study are entirely confined to the responses of the
Delhi consumers and might deviate in terms of actual population as a
whole.
Recomendations given after the study are entirely dependent on the
survey and the secondary analysis done in the report.
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SURVEY RESULTS:
1. Brand Associations:
Sources of Brand equity like brand association of Maggi as a Brand was found
highest with the age group of 10-25 and the product category associated with
it was the noodles category ( see exhibit 1). Consumers in the age segment of
10-25 could easily relate Maggi to noodles.
In the income wise category the brand association was highest with the
income group of 25k-40k were more than 40 respondents associated Maggi
with noodles ( see exhibit 2). The implications from the findings discussed
above seem that Maggi has good brand association in terms of noodles.
Consumers presume Maggi as Noodles and the companys philosophy of
projecting the brand as noodles brand seem to be viable in this regard.
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Exhibit 1
Exhibit 2
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Exhibit 3
In the gender wise category the companys strategy of positioning of Maggi
brand for working women seems to be adaptive and gaining shape as women
respondents had a brand recall more than male.
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Exhibit - 4
3. Brand Awareness:
From the responses of the respondents in the conducted survey it was evident
than Maggis Brand awareness was very high in terms of noodles i.e around
65%of the respondents associated maggi as noodles and only 20% of the
respondents knew ,Maggi as a Ketchup, 9% as soup etc.
The trend indicated that Maggis brand extension strategy to increase its
basket has not been quite successful in other food segments .This might be
because of the larger share of market captured by the competitors hence
Maggi has a high potential in markets like ketchup, soups etc.
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4. Repositioning Maggi as a healthy product:
The companys strategy to reposition Maggi as a Healthy product was not
found conducive as per the survey results. The survey showed that
consumers did not perceived Maggi as a healthy product with 53% of them
consumed Maggis traditional products as compared to the rest whoconsumed other variants of Maggis brand that were positioned as Healthy
products.
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From the pie chart given below it can be clearly seen that Maggi is still
perceived as a non healthy products by the consumers and in spite of the
efforts to position Maggi as a healthy product by the company the brand is still
perceived as a ready to eat food brand that has a high market share in the
noodle category in India.
From the pie chart given
below it can be clearly
seen that 58% people
perceive maggi as
a ready to eat
product,23% people perceive magi as a junk food,15% peole perceive it as a
healthy food and 10%people perceive it as a tasty/fun eating product.
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Perception of Maggi Noodles
As a Healthy
Product
40%
As a non
Healthy Product
60%
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S WOT ANALYSIS OF MAGGI BRAND
The SWOT analysis of Maggi brand clearly indicates the strengths of Maggi as
a Brand in Indian market. The Brand was found to be a leader in its category
of Noodles, with strong customer loyalty. Intensive distribution of Maggi as a
Brand was seen in urban areas of the country. The major threats of the brand
as shown in the figure below indicates that Maggi has made several attempts
to revamp itself as a Healthy Product but till date its perseverance towards
the tag line is low by the consumers. The brand is in the growth stage of
product life cycle with a strong inclination towards the maturity stage.
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SWOT
ANALYSIS
STRENGTH
Market leader in their segment
Strong brand loyal consumer baseWide range of distribution channel
Product according to the need of Indian
consumer
Innovative Product
WEAKNESS
Product are dependent on each other
Not so much presence in ruralmarket
OPPORTUNITY
Increasing number of working youth
Product has been acceptable in youthcategory
Shift to rural market
Changing preference of consumer
towards Chinese food and fast food.
Can foray into other food markets with
its strong Brand name
THREAT
Price war with competitors.
Strong presence of regionalcompetitors
Consumers dont perceive it as a
Healthy Product
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STPD A NALYSIS OF MAGGI BRAND
Segmentation: Market Segmentation divides the heterogenous market into
homogenous groups of customers who share a similar set of needs/wants and
could be satisfied by specific products. Maggi Brand have segmented the
market on the basis of lifestyle and habits of URBAN FAMILIES.
Target: Market Targeting refers to evaluating and deciding from amongst thevarious alternatives, which segment can be satisfied best by the company.
The Maggi Brand have mainly targeted the Kids, Youth, Office Goers &
Working Woman which falls into the category of convenience-savvy time
misers who would like to get something instant and be over with it quickly.
Positioning: Market Positioning is the act of designing the companys
offerings and image to occupy a distinctive place in the minds of the target
market. The goal of positioning is to locate the brand in the minds of
consumers to maximise the potential benefit to the firm. Maggi has positioned
itself in the SNACKS category and not in the meal category since Indians do
not consider noodles as a proper food item. Therefore Maggi have developed
its brand image of instant food products with positioning statements such as 2
minutes noodles and Easy to cook, good to eat.
Differentiations: Points-of-difference (PODs) are attributes or benefits
consumers strongly associate with a brand, positively evaluate and believe
they could not find to the same extent with a competitive brand. The Maggi
Brand have also differentiated its brand image from its competitors in terms of
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taste, flavours and packaging. Maggi have launched wide varieties of products
in different flavours which can attract larger set of customers. Maggi productsare also available in different sizes catering to different customer needs.
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 trendis 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. When
Nestle changed the formulation of its tastemaker, the ominous packet that
came along with Maggi Noodles, a major chunk of consumers were put-off
and sales started dropping. Also, Maggis competitor TopRamen took
advantage of the situation and started a parallel aggressive campaign to eat
into Maggis market share. But the company quickly realised this and went
back into making the original formula coupled with a free sampling campaign.
This helped Maggi to win back its lost consumers and pushed up its sales
volumes again.Maggi Today The year 2008 saw India leading in world wide
Maggi sales. The brand has grown to an estimated value of Rs 160-170 crore
and contributes at least 89% to Nestle Indias top line. All the same, some
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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 noodlesmarket is yet quite small at Rs 300 crore. But yes, the parent company, Nestle
India Limited has certainly encouraged the brand to enter into other culinary
products
RECOMMENDATION
After the conducted study following recommendations could be sited for Maggi
Brand.
To gain maximum leverage in terms of profit the company should pay
emphasis on segments with age groups 25-35 and above .Advertising is
the key to success. Targeting these segments will not only enhance the
companys profit margins but also it will leverage the brand image of
Maggi.
The company should advertise its products by depicting attributesrelated to Health like Nutrition values, % of Vitamins, Proteins etc.This
would help in customers perceiving the product as Healthy.
Foray into other food products like chips, chocolates etc under its sole
brand name would not only help in Brand extension but will also
enhance Maggis market share.
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FUTURE PLANS
Nestl Indias objective is to manufacture and market the companys
products in such a way so as to create value that can be sustained over
the long term for consumers, shareholders, employees and businesspartners.
Maggis aims to create value for consumers that can be sustained over
the long term by offering a wide variety of high quality, safe food
products at affordable prices.
The company continuously focuses its efforts to better understand the
changing lifestyles of modern India and anticipate consumer needs in
order to provide convenience, taste, nutrition and wellness through its
product offerings.
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APPENDEX 1
QUESTION N AIRE
When you fill in this questionnaire please use a pen and mark () on the best
response.
Q-1 what product would you associate with the tag line mentioned below?
Its different. ..
Dont be a noodle, be snoodle.
2 minute noodles/ Bas minute.
Jitna tasty, utna healthy..
Mummy bhook lagi
Try it with a twist ..
Hearty soups warm you from inside ..
Fast to cook, Good to eat
Q-2 what comes first in your mind when you hear the word Maggi?
Noodles
Fast food
Snacks
None of these
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Q-3 what is the brand that comes to your mind when we say the wordnoodles?
Maggi
Top Ramen
Surya Noodles
Anil Noodles
Q-4 Rank the following Maggi products w.r.t. frequency of purchase with 1
being the highest rank
RANK
Noodles _________
Ketchup _________
Soup _________
Pickles _________
Cubes _________
Q-4 With what products would you associate the brand Maggi?
Ketchup
Noodles Soup
Masala
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Q-5 On a scale of 1 to 5 rate Maggi on the following parameters
Taste ____________ Variety/Flavours ____________
Hygiene/Purity ____________
Availability ____________
Packaging (SKUs) ____________
Q6 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, masalas) ____________
Others ( Please mention) _____________
Q-7 how do you rate Maggi brand in terms of following parameters:
Expertise (Competent, Innovative, Market leader)
Trustworthiness (Dependable and keep customers interest in mind)
Liability ( Fun ,interesting) None of these
Q-8 How do you perceive Maggi products?
Good for health.
Ready to eat.
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Junk food
Tasty / Fun eating
Q-9 Which Maggi products in noodles category do you regularly buy?
(Repositioning awareness)
Maggi masala
Maggi vegetable atta noodles
Maggi dal atta noodles
Maggi rice noodles mania
Others
Q-10 Do you perceive Maggi noodles as a healthy product?
Yes
No
Q-11 If No then your suggestions for improvement as a healthy product?
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Profile Sheet
Age : Sex :
Profession :
Monthly Income :
Marital Status :
Thank you for your answers.
It has been a pleasure interacting with you.