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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.

copy of maggie main

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