COLLEGE OF MANAGEMENT STUDIES

A
Project Report
On
Maggie's Marketing strategies - A comprehensive
analysis

Submitted in partial fulfillment of the requirement for

the award of the degree of
Bachelor of Business Administration (BBA)

Submitted By
Gauri Singh
( Roll No: 23070000239 )
Under the Guidance of

Ms. Sweta Saxena

(Project Coordinator)

(Affiliated to CHHATRAPATI SAHU JI MAHARAJ UNIVERSITY, KANPUR)

 Acknowledgement

I would like to express my sincere gratitude and regards to my Internal guide Ms.
Sweta Saxena for her constant inspiration, supervision and valuable guidance
during the training.

With regards

Signature of Student
 STUDENT DECLARATION

I,Gauri Singh student of B.B.A at College of management studies, hereby declare

that the project work entitled a survey on the Maggie's Marketing strategy - A
comprehensive analysis is compiled and submitted under the guidance of Ms.Sweta
Saxena.This is my original work.

The information furnished above in this project report is true to the best of my
knowledge.

Name- Gauri singh

BBA 2nd Year
Batch 2024-25

Date:
 COLLEGE OF MANAGEMENT STUDIES UNNAO
@RAGENDRA SWARUP KNOWLEDGE CITY
(Affiliated to Chhatrapati Shahu Ji Maharaj University, Kanpur Nagar)
Kanpur –Lucknow National Highway

CERTIFICATE

This is to certify that the Project Report entitled “Maggie's Marketing

strategy - A comprehensive analysis is a bonafide work of “Gauri Singh”
(23070000239) BBA IV Semester and has been done under my supervision for
the partial fulfilment of the requirement for the award of BBA degree from
CSJM university Kanpur.

This report neither full nor in part has even before submitted for awarding of
any Degree/Diploma of either this university or any other university. I am
pleased to say that the performance of the student during the period of report
work was extremely satisfactory.

Supervisor Name:- Ms. Sweta Saxena

Supervisor Signature:-
Designation:- Associate professor
Date:-

Principal
Dr. Ashutosh Mishra
 INDEX

1. INTRODUCTION ( 1 – 13 )

2. PRODUCT PROFILE ( 14 – 19 )

3. MAGGIE PORTFOLIO ( 20 – 30 )

4. MARKETING STRATEGIES. ( 31 – 36 )

5. DATA ANALYSIS AND INTERPRETATION ( 37 – 43 )

6. FINDINGS OF THE STUDY ( 44 – 45 )

7. LIMITATIONS ( 46 )

8. CONCLUSION ( 47 )

9. ANNEXURES ( 48 – 53 )

10. BIBLIOGRAPHY ( 54 )
 INTRODUCTION

Nestle India Ltd is a subsidiary of the Swiss multinational company Nestle, and it’s been a
significant player in India’s food processing industry since. 1912. The company was
officially incorporated in India on March 28, 1959, and is headquartered in Gurgaon,
Haryana.

Nestle India’s product portfolio is diverse, including food, beverages, chocolate, and
confectioneries. Some of its popular brands include Maggi, Nescafé, Cerelac, KitKat,
Nestea, Polo, Milkybar, Milo, and Gerber. The company has a strong presence in India,
with 9 manufacturing facilities across the country, including locations in Punjab, Haryana,
Karnataka, Tamil Nadu, Goa, Uttarakhand, and Gujarat.

Below is an expanded version of the industry introduction for Nestle India Ltd, offering
additional details, context, and insights into its strategic positioning and the broader food
and beverages sector in India.
1. Industry Overview

Food and Beverages Segment

The food and beverages industry is a vast and multifaceted sector that involves several
stages from production to consumption. In India, this segment includes not only the
manufacturing and processing of food items but also the extensive logistics and distribution
systems that bring these products to market. Key characteristics include:

High Consumer Demand:

With a growing population, rising disposable incomes, and urbanization, there is a constant
surge in demand for quality food products. Consumers are becoming more discerning,
seeking products that combine taste, nutritional benefits, and convenience.

Innovation and Brand Loyalty:

The competitive nature of the industry means that companies are continually investing in
research and development. Product innovation — whether through new flavors, improved
nutritional profiles, or novel packaging — is essential for capturing and retaining market
share. Established brands benefit from strong consumer loyalty, which can act as a
significant competitive advantage.

Regulatory Environment:

The industry is heavily regulated to ensure public health and safety. Companies must
adhere to strict guidelines on food safety, quality control, and proper labeling. This
regulatory oversight ensures that the products reaching consumers are safe, which in turn
builds trust in well-known brands.

Distribution Channels:

India’s vast and diverse market requires a robust distribution strategy. Products are
delivered through a mix of modern retail chains, e-commerce platforms, and traditional
kirana (small local) stores. This multi-channel distribution network is critical in reaching
urban consumers as well as rural households, making market penetration a key strategic
focus.

2. Nestle India Ltd in the Industry

Heritage and Global Expertise

Nestle India Ltd, a subsidiary of the global giant Nestlé S.A., brings decades of
international expertise to the Indian market. The company benefits from its parent’s vast
research and development network, quality control protocols, and marketing prowess. This
global heritage is tailored to suit local tastes and preferences, allowing Nestle India to
maintain high standards while catering to regional nuances.

Diverse Product Portfolio

Nestle India’s product offerings are extensive, covering a wide range of consumer needs:

Dairy and Beverages:

Products include a variety of milk-based items and nutritional beverages. These products
are designed to meet the needs of both children and adults, with formulations that
emphasize health and wellness.
Cereals and Snacks:

The company has a significant presence in the breakfast cereals and snack segments,
offering products that appeal to families looking for convenient and healthy meal options.
Their cereals are often fortified with vitamins and minerals, addressing both nutritional
deficiencies and modern dietary trends.

Culinary Products:

Perhaps one of the most recognizable offerings is the Maggi range, including noodles and
sauces. Over the years, Maggi has become a household name in India, symbolizing quick,
tasty, and affordable meals for the busy urban consumer.

Market Adaptation and Innovation

Nestle India has consistently demonstrated an ability to innovate and adapt:

Localized Product Development:

Understanding the diversity of the Indian palate, the company customizes its products. For
example, it may adjust spice levels or ingredient formulations to better match regional
preferences.

Research and Innovation Investments:

Continuous investment in R&D has enabled Nestle India to develop products that not only
taste good but also offer enhanced nutritional benefits. This focus on innovation helps in
responding quickly to changing consumer trends and health concerns.

Quality and Safety Standards:

Leveraging global best practices, Nestle India places a strong emphasis on quality control
and food safety, ensuring that every product meets rigorous standards before it reaches
consumers.

3. Industry Trends and Growth Factors

Changing Consumer Lifestyles

India’s rapid urbanization and evolving lifestyle patterns have led to a shift in consumer
behavior. There is a marked increase in demand for:

Convenient, Ready-to-Eat Options:

Busy work schedules and changing family dynamics mean that consumers are increasingly
turning to quick and easy meal solutions.

Health-Conscious Products:
An increased awareness of health and wellness has driven demand for products with
reduced sugar, salt, and artificial additives, as well as those enriched with nutrients.

Digital Transformation

Digital technologies are revolutionizing how FMCG companies operate in India:

• E-Commerce and Omnichannel Retail:

The rise of online shopping has expanded market access, particularly in tier-2 and tier-3
cities. Digital platforms offer personalized shopping experiences and broaden the reach of
traditional FMCG products.

• Data-Driven Marketing:
The use of big data analytics and targeted marketing campaigns helps companies like
Nestle India understand consumer preferences better, optimize inventory, and forecast
trends more accurately.

Sustainability and Health Focus

Modern consumers are placing greater importance on sustainability and health:

Eco-Friendly Practices:
There is a growing demand for products that are packaged in environmentally friendly
materials and produced through sustainable practices. Companies are increasingly
investing in green technologies and processes.

Healthier Ingredients:
Reformulating products to reduce unhealthy ingredients while boosting nutritional value is
a priority. This focus not only caters to health-conscious consumers but also aligns with
global trends towards sustainable, ethical production.

4. Competitive Landscape and Challenges

Intense Competition
The FMCG sector in India is highly competitive, with both multinational corporations and
strong local brands vying for market share. Key aspects of this competitive landscape
include:

Innovation and Differentiation:

Success hinges on the ability to continuously innovate. Nestle India’s investment in R&D
is crucial in keeping its product portfolio relevant.

Brand Loyalty and Marketing:

Strong brand recognition is a major advantage in this market. However, maintaining and
expanding brand loyalty requires significant marketing investment and adaptive
promotional strategies.
Efficient Distribution Networks:
Penetrating both urban and rural markets requires a well-coordinated distribution strategy.
Companies must manage a delicate balance between modern retail channels and traditional
markets.

Regulatory and Economic Factors

Several external factors present ongoing challenges:

Raw Material Costs:

Fluctuations in the cost of raw materials such as milk, wheat, and other essential ingredients
can impact profitability. Companies must hedge against these risks through diversified
sourcing and pricing strategies.

Economic Uncertainties:
Broader economic factors, including inflation, changing consumer spending habits, and
market volatility, can affect the FMCG sector. Established brands like Nestle India often
have the advantage of diversified portfolios that help mitigate these risks.

Regulatory Changes:
Adapting to new regulations or changes in food safety and quality standards requires
agility. Nestle India’s global expertise and robust internal processes enable it to quickly
adjust to new regulatory requirements.
SWOT Analysis

Here’s a SWOT analysis for Nestlé, a global leader in the food and beverage industry:

Strengths:

1. Brand Recognition: Nestlé is one of the most recognized and trusted food and
beverage brands in the world, with a large global market presence.

2. Diverse Product Portfolio: Nestlé has a broad range of products, including dairy,
coffee, bottled water, nutrition, and pet care, which helps reduce risks associated
with reliance on one market segment.

3. Global Reach: The company operates in more than 190 countries, giving it a diverse
customer base and reducing dependency on any one region.

4. Strong Financial Position: Nestlé has consistently shown strong financial

performance, with a solid balance sheet, making it wellpositioned to invest in new
technologies, acquisitions, and innovations.
 5. Research and Development: Nestlé invests heavily in R&D, allowing the company
to lead in terms of innovation and create new products that cater to consumer trends
like health-conscious and sustainable choices.

Weaknesses:

1. Dependency on Developed Markets: Although Nestlé has a global presence, it

remains heavily dependent on developed markets (North America and Europe),
which can affect growth prospects in emerging economies.

2. Product Recalls and Safety Issues: Like other large companies in the food industry,
Nestlé occasionally faces issues with product recalis or safety concerns, which can
harm its reputation.

3. High Competition: The food and beverage industry is highly. Competitive, with both
established brands (like Unilever, Coca-Cola, and PepsiCo) and local players
challenging Nestlé’s market share.

4. Complex Supply Chain: Nestié’s vast product range involves a complex global
supply chain, which could be vulnerable to disruptions from factors like geopolitical
instability or climate change.

Opportunities:

1. Growing Demand for Healthier and Sustainable Products: Increasing consumer

awareness around health, nutrition, and sustainability creates opportunities for
Nestlé to expand its range of healthoriented and eco-friendly products.

2. Emerging Markets: The rising middle class in developing countries offers an

opportunity for growth as demand for packaged food, beverages, and nutrition
products increases.
 3. E-commerce Growth: The growth of online shopping offers opportunities for Nestlé
to expand its reach, especially through direct-to-consumer channels or partnerships
with e-commerce giants.

4. Acquisitions and Partnerships: Nestlé can further enhance its product offerings and
market share by acquiring smaller, innovative brands or partnering with local players
in emerging markets.

Threats:

1. Regulatory Challenges: The food and beverage industry is subject to strict

regulations regarding product ingredients, labeling, advertising, and health claims.
Any changes in regulations could impact Nestle’s operations or result in fines.

2. Raw Material Price Fluctuations: Nestlé is exposed to fluctuations in the price of

raw materials, such as cocoa, sugar, and milk, which could impact profitability,
especially when price increases are passed on to consumers.

3. Changing Consumer Preferences: If consumer preferences shift rapidly towards

alternative diets (e.g., plant-based, vegan, or nondairy) and Nestlé does not respond
quickly enough, it could lose market share.

4. Intense Competition in Health and Wellness: As more companies enter the health
and wellness space, Nestlé may face increased competition, particularly in areas like
plant-based foods and organic products.

In summary, Nestle’s strong brand, diverse product portfolio, and global reach position it
well for continued growth, but it must navigate challenges such as changing consumer
preferences, regulatory pressures, and fierce competition to maintain its leadership.
History and Milestones

Nestle India’s journey in India began in 1912, when it started exporting condensed milk to
the country. Over the years, the company has expanded its operations and introduced
various products to the Indian market. Here are some significant milestones in Nestle
India’s history:

1961: Nestle India set up its first production facility in Moga, Punjab.

1989: The company established a factory at Nanjangud in Karnataka.

1990: Nestle India entered the confectionery business with the introduction of Nestle
Premium Chocolate.

1995: The company set up a new kit kat factory at Goa.

2000: Nestle India entered the ultra-heated liquid milk industry.

2006: The company set up its 7th factory at Pantnagar in Uttarakhand.

2011: Nestle India set up a new plant at Karnataka.

2020: The company announced an investment of Rs. 2,600 crore for a new plant at Sanand
in Gujarat.

Awards and Recognition

• Nestle India has received several awards and recognition for its commitment to quality,
innovation, and sustainability. Some notable awards include:

• Best Industry Award for product innovation for millet mainstreaming (2023)

• Food Company of the Year Award by IFSNSA (2023)

• Golden Peacock Occupational Health & Safety Award for its Moga factory (2019)

Sustainability Initiatives

• Nestle India has been committed to sustainability and has implemented various initiatives
to reduce its environmental footprint. Some notable Initiatives include:

• Going coal-free and furnace oil-free by next year

• Starting plant-based protein product production

• Being plastic neutral by recycling its plastics for the past three years

Financial Performance

Nestle India has consistently delivered strong financial performance over the years. In
2023, the company reported a net income of Rs. 2,998 crore, with a revenue of Rs. 19,247
crore. The company has also announced plans. To invest Rs. 6,000-6,500 crore by 2025 to
expand its operations and increase its presence in semi-urban and rural areas.
 PRODUCT PROFILE

Nestle offers a wide range of food and beverage products across various categories,
including:

1. Beverages: Nescafe, Nestea, and Gerber

2. Confectionery: KitKat, Milkybar, and Quality Street

3. Cereals: Nesquik. Cini Minis, and Cookie Crisp

4. Infant Nutrition: Cerelac, Lactogen, and Nan

5. Coffee and Beverages: Nespresso, Dolce Gusto, and Starbucks at Home.

 6. Purina PetCare: Purina Dog Chow, Purina Cat Chow, and Friskies

7. Health Science: Nutri-Grain, PowerBar, and Garden of Life

8. Food: Maggi, Stouffer’s, and Lean Cuisine

Product Features

Nestle’s products are known for their:

1. Quality: Made with high-quality ingredients and rigorous quality control processes

2. Taste: Delicious and iconic flavors that consumers love

3. Nutrition: Many products offer nutritional benefits, such as whole grains, fiber, and
essential vitamins and minerals
 4. Convenience: Easy to prepare and consume, with many products offering on-the-go
convenience

5. Sustainability : Nestle is committed to sustainable practices throughout its supply

chain and operations

Target Audience

Nestle’s products cater to a wide range of consumers, including:

1. Families: With a focus on nutrition and convenience

2. Young Adults: With a focus on taste, convenience, and sustainability

3. Health-Conscious Consumers: With a focus on nutritional benefits and weliness

4. Pet Owners: With a focus on high-quality pet food and nutrition.

 MAGGIE

Maggi is a well-established brand of instant noodles, seasonings, and soups owned by

Nestle, a Swiss-based food and beverage company. With a rich history spanning over 150
years, Maggi has become a household name in many countries, including India, where it
was launched in 1983.

Product Portfolio

Maggi’s product portfolio is diverse and includes a wide range of instant noodles,
seasonings, and soups. Some of the popular products under the Maggi brand include:

1. Maggi 2-Minute Noodles: This is one of the most popular products under the Maggi
brand. These instant noodles are available in a variety of flavors, including
vegetable, chicken, and masala.
 2. Maggi Special Masala Noodles: These noodles are a variant of the 2- Minute
Noodles and are flavored with a special blend of spices.

3. Maggi Veggie Masala Noodles: These noodles are a vegetarian

Variant of the 2-Minute Noodles and are flavored with a blend of spices and vegetables.

4. Maggi On-The-Go Noodles & Ready to Eat: These are pre-cooked noodles that can
be consumed on-the-go. They are available in a variety of flavors, including masala,
chicken, and vegetable.

5. Maggi Cooking Aids: These are a range of products that help Consumers cook a
variety of dishes, including curries, soups, and stirfries. Some popular products
under this category include Maggi Masalaac-Magic, Maggi Coconut Milk Powder,
and Maggi Magic Cubes Vegetarian Masala.

STPD ANALYSIS OF MAGGI BRAND

Segmentation: Market Segmentation divides the heterogeneous market into homogenous

groups of customers who share a similar set of needs/wants and could be satisfied by
specific products. Maggi Brand has segmented the market on the basis of lifestyle and
habits of URBAN FAMILIES.

Targeting

Market Targeting refers to evaluating and deciding from amongst the various 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 company’s 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 has also differentiated its brand image from its
competitors in terms of taste, flavours and packaging. Maggi have launched wide varieties
of products in different flavours which can attract larger set of customers. Maggi products
are also available in different sizes catering to different customer needs.
 MARKETING STRATEGIES

Maggi, a well-known brand of instant noodles, sauces, and soups, has been a staple in
Indian households for decades. The brand’s success can be attributed to its effective
marketing strategy, which has evolved over the years to cater to changing consumer
preferences and market trends. In this article, we will delve into Maggi’s marketing
strategy, exploring its product, pricing, place, and promotion tactics.

Product Strategy

Maggi’s product strategy is centered around offering a diverse range of products that cater
to different consumer preferences. The brand’s product portfolio includes:

1. Instant Noodles: Maggi’s instant noodles are available in various flavors, including
vegetable, chicken, and masala.

2. Sauces: Maggi offers a range of sauces, including tomato sauce, chili sauce, and soy
sauce.

3. Soups: Maggi’s soup range includes vegetable soup, chicken soup, and tomato soup.

4. Seasonings: Maggi’s seasoning range includes masala, chicken masala, and

vegetable masala.
Maggi’s product strategy is focused on providing convenience, quality, and affordability to
its customers. The brand’s products are designed to be easy to prepare, nutritious, and
affordable.

Pricing Strategy

Maggi’s pricing strategy is centered around offering affordable products to its customers.
The brand follows a cost-based pricing strategy, which ensures that its products are priced
competitively, Maggi’s pricing strategy. Is designed to:

1. Penetrate the market: Maggi’s affordable pricing strategy helps the brand to penetrate
the market and attract price-sensitive customers.

2. Create brand loyalty: Maggi’s pricing strategy is designed to create Brand loyalty by
offering affordable products that meet customer expectations.

Place and Distribution Strategy

Maggi’s place and distribution strategy is focused on making its products. Widely available
to customers. The brand has an extensive distribution network that includes:

1. Retail stores: Maggi’s products are available in retail stores across India.

2. Supermarkets: Maggi’s products are available in supermarkets and hypermarkets.

3. Online platforms: Maggi’s products are available on online platforms, including e-

commerce websites and mobile apps.

Maggi’s distribution strategy is designed to ensure that its products are widely available
and easily accessible to customers.

Promotion Strategy

Maggi’s promotion strategy is focused on creating awareness, generating interest, and

driving sales. The brand’s promotion strategy includes:

1. Advertising: Maggi advertises its products through various media channels,

including television, print, and digital.

2. Product sampling: Maggi offers free product samples to customers to promote its
products.
 3. Celebrity endorsements: Maggi has partnered with celebrities, including Madhuri
Dixit and Amitabh Bachchan, to promote its products.

4. Social media marketing: Maggi has a strong presence on social media platforms,
including Facebook, Twitter, and Instagram.

Digital Marketing

Maggi’s digital marketing strategy is focused on creating a strong online presence and
engaging with customers through digital channels. The brand’s digital marketing strategy
includes:
 1. Website: Maggi has a website that provides information about its products, recipes,
and promotions.

2. Social media: Maggi has a strong presence on social media platforms, including
Facebook, Twitter, and Instagram.

3. Email marketing: Maggi uses email marketing to promote its products and engage
with customers.

4. Influencer marketing: Maggi partners with influencers and bloggers to promote its
products and create brand awareness.

Maggi’s digital marketing strategy is designed to create a strong online presence, engage
with customers, and drive sales.

Strategies Adopted By Nestle Maggi:

1. Strong Consumer Relations:

Nestlé’s campaign for Maggi’s silver jubilee aims to improve the brand’s strong customer
connection through print, television, and the internet.

The television campaign gives the jingle a lot of airtime. The biggest food business in India,
Nestlé, has chosen not to cover the sky with billboards for the event. The advertisements
will instead appeal to memory.
Customers who tried the brand for the first time as children now control houses. The effort
aims to make the association stronger. Customers will therefore be encouraged to share
their favourite “Maggi moments” with the business. If the business loves the way you make
Maggi, you could see your picture on Maggi packages.

Convenience the key factor in good packaging and strong dealer vender relations Maggi’s
unique selling pitch when it first debuted 25 years ago Consumers received something that
was hygienically packaged and simple to prepare for the first time. It was also India’s first
attempt at cuisine fusion..

2. Innovation in continuous processes:

Instant noodles were a completely new category in the nation, yet they had an Indian
influence, Maggi was available in four flavours chicken, sweet & sour, capsicum, and
masala. Just two of these have persisted:
masala and chicken, which is mostly sold in the castern states. As a resalt of the product’s
repositioning as a healthy snack:

It is no longer aspirational product for any socioeconomic segment of customers, claims

Hegde Nestlé was likewise in the process of rebranding itself as a health and wellness firm
at that time. Maggi began participating in competitions for mental and physical health at
the focal level, along with other similar activities. Nestlé able to introduce more items under
the Maggi brand because to this positioning. Maggi soups, sauces, and coconut milk were
already available on the market, but due to the brand’s great equity, Nestlé was able to
expand it to additional categories. As a result, fried masala paste was recently released.
Maggi Bhuna Masala and Maggi Cuppa Mania Instant Noodles were two brand extensions
released in 2008.

3. Pricing Incentives:
The corporation is expanding its distribution to smaller towns and cities since it isn’t willing
to take any chances. The most extensively sold brand in the nation for Nestlé in Maggi.
Hegde claims that it reaches the communities where the corporation has presence through
independent routes. This is also the period when Maggi’s value-for-money box, which costs
Rs 5, is anticipated to be useful. (The usual package costs Rs. 10).

4. Gaining a New Customer Base

Maggi recognised that one of the factors contributing to its low market share in Gujarat
was the fact that the majority of people there do not consume onions garlic. As a result.
Maggi developed and marketed a special product specifically for Gujarat that does not
contain either of those ingredientslike Jain Maggi. This enabled them to gain an entirely
unconquered territory, noodle market for Jains

One well-known brand of Nestle is Maggi, which places a lot of emphasis on creating and
carrying out digital and social media efforts. The company has a smart engagement
approach across all of its social media platforms, capitalising on each one’s advantages to
spread its message and control user interaction.

Marketing campaigns of Maggi

Nestle India recently launched an inveigle campaign in which Maggi lovers. Would get a
chance to vote for their special favourite flavour. The new variants by Maggi such as
Tomato, Chatpata, Yummy Captica, and Desi Cheesy offer rotation to every enjoyable
flavour profit yet manages to fire up the natural sense of familiarity among the consumers
that Maggi has developed through its years of experience.

The Campaign has become even more interesting and exciting when it is coupled with this
chance to vote for the favourite flavour, making the whole experience inclusive,
invigorating as well as energizing. Maggi urges. Everyone to enjoy its new variations of
flavours and to rate and vote for consumers’ special favourite ones among them, as Maggi
always wishes to give their best to its customers.
Failed Campaign of Marketing

In 2015 in India, Maggi faced a colossal failure in its marketing strategy. The brand had to
face a big crisis when it was discovered that the level of lead consumption in its instant
noodles was higher than the permissible level. This led to an immediate ban on the sale of
its noodles.

Originally the marketing strategy of Maggi was heavily dependent on preconceived notions
of its instant noodles being a quick, convenient, affordable and safe meal option for
families. However, Maggi experienced a huge drop in its customer’s confidence in the
brand since the discovery of higher lead levels.
Now let us understand the factors that contributed to this failure:

1. Lack of Transparency

Maggi became very defensive about the allegations made against it. This lack of
tranparency in addressing made the public more skeptic about the matter, futher damaging
the reputation of the firm.

2. Non-compliance with the regulations

This incident questioned Maggi’s commitment to providing consumable food to its

consumers as they were not able to comply with the food safety regulations.

3. Slow crisis management

Maggi was criticised for delaying the response to this issue. This further tarnished the
brands image in the eyes of consumers.

4. Financial and Legal Consequences

Maggi faced significant financial losses in legal battles, and fines, and had to make
substantial investments on marketing and product quality assurance to regain its customers’
trust.

COMPETITORS

As we all know, Maggi has certainly been the topmost leading brand in the noodle industry
for decades but there are many other brands as well which have given close competition to
MAGGI in the past as well as in the present.

Below are the top 2 Maggi competitors:

RAMEN-The Ramen is the second top brand of Noodles in India and has been trying hard
for the last 18 years to beat Maggi. It is a global brand from Nissin, which was launched in
1991. Top Ramen then was a heavy advertiser in the media. Another factor was the
promotion strategy and its interesting distribution strategy. Top Ramen could not offer any
serious differential to Maggi either in terms of the brand or product. However, Maggi was
able to gain back the lost position because it was the pioneer brand that built the category.

YIPPEE- Sunfeast Yippee is the recently launched noodles brand in India, which has been
dominated by Maggi for many years. Recently, this product has also seen a lot of activity
with the launch of many new brands like Knorr from HUL, Ching’s Secret by Capital
Foods, etc.

KNORR-Knorr was established in the year 1838 and has since then.
Expanded its product line to include a variety of cuisines from around the world. With
Influencers like Karan Johar, and Raveena Tandon starring in its short and quirky ads,
Knorr has managed to make its place in India.

CHING’S SECRET-Ching’s secret was launched in 1996 by celebrity chef

Harpal Singh Sokhi and has since then become a popular brand in India and other parts of
the world. Ching’s Secret products are inspired by Chinese cuisine and are designed to
cater to the Indian palate. The ads. Featuring Ranveer are known for their quirky and
humorous style, which resonates well with Ching’s target audience.

Thus, it has tried to give itself a different positioning from the other competitors in the
market and it is the only competitor of Maggi who has decided to head on while competing
with it.
Market Share

Exhibit - 1

Exhibit - 2
 RESEARCH METHODOLOGY

OBJECTIVES

• To identify the key factors influencing consumer choices when purchasing Maggi, such as taste,
price, convenience, and health perception.

• To analyze the frequency of consumption, preferred pack sizes, and purchasing habits (e.g.,
frequency, location of purchase).

• To evaluate the level of brand loyalty towards Maggi and its competitors (e.g., Yippee, Top Ramen).

• To determine the factors contributing to the preference for Maggi over other instant noodle brands

• To assess customer satisfaction with Maggi in terms of taste, texture, quality, and ease of
preparation.

• To evaluate customer feedback on the product packaging, and whether it meets expectations for
convenience and sustainability.

• To determine how Maggi is consumed (plain, with vegetables, as a snack, in recipes) and the
different occasions of consumption (e.g., late-night snack, meal replacement, travel food).

• To identify potential areas for product improvement, such as the demand for healthier variants
(whole wheat, low-sodium options) or additional flavor options.
• To gather insights on pricing strategies, packaging enhancements, and new product offerings that
could appeal to a broader consumer base.

• To understand how consumers perceive the healthiness of Maggi and its positioning as comfort
food.

• To evaluate the effectiveness of current marketing strategies, including advertising and promotional
campaigns, and their impact on consumer purchase behavior.

• To explore opportunities for new marketing strategies that can increase consumer engagement,
retention, and brand advocacy.

RESEARCH PLAN

Research Design:

The research will be carried out in the form of a survey which will be
done in areas near to Amritsar. 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 analysis is based on a sample size of 20 respondents, covering different age groups,
genders, and occupations. The sample includes:

• Age Group Distribution:

8 respondents aged 18-25, 6 respondents aged 26-35, 4 respondents aged 36-45, and 2
respondents aged 46+.

• Gender Distribution:

12 males and 8 females.

• Occupation Distribution:

7 students, 9 working professionals, 3 homemakers, and 1 from other categories.

This diverse mix helps in understanding the purchasing behavior, brand perception, product
satisfaction, and consumption habits of Maggi consumers.
This structured breakdown provides clarity on the respondent demographics used in the study.
ECONOMICS TIMES

INDIANS EAT MOST MAGGI NOODLES IN THE WORLD

• “India has emerged as the largest consumer of Maggi noodles across all Nestle operations
in the world,” Donati told ET.

• It was Donati who brought the instant noodle brand to the country during his short stint
in the carly 1980s. Maggi went on to create a whole new product category and caught the
fancy of kids across the country in no time.

• Today, while India tops in world-wide Maggi sales, the latter has grown to an estimated
Rs 160-170 crore brand contributing as much as 8-9% to Nestle India’s top line. Maggi
noodles sell in most Asian countries, Australia and Africa.

• However, FMCG analysts are not impressed. They say Maggi has done little to expand
the noodles category per se. “Nestle’s investment on Maggi has been. Squarely
disproportionate to the growth of the brand, Mumbai-based equity research firm ASK
Raymond James senior vicepresident (research). Nikhil Vora said.

• Today, after 20 years of flogging the Maggi brand, the size of instant noodles market is a
small Rs 200 crore. Yet, most analysts agree that Nestle India has done well to leverage the
brand to enter a large number of culinary products.

• Just for the record, “In 10 years, I want to sell two and a half times of what I am selling
today,” said Donati. So, the learning curve is shrinking.

• Launched in early 1980s, Maggi was positioned on the convenience plank which yielded
good results.

• Looking at the success of noodles, Nestle India decided to extend the brand to a number
of products such as sauces, soups, pickles and macaroni in mid-1990s. Maggi macaroni
bombed and pickles didn’t do well either. Maggi soups and sauces chugged along and today
have a decent presence in the market.
• Maggi noodles’ acceptance among Indian consumers didn’t come easy. Nestle changed
its formulation some time back which was rejected by the consumer. So, the company had
to revert to the original make. Since then, it has been a smooth. Sailing for the brand.

• Interestingly, it is only now, during Donati’s second stint, in the country that the brand
has stabilized. “Maggi noodles have seen a robust doubledigit growth in sales during the
last four years,” said Donati. Last year, Nestle India launched Chinese Noodles as a snack
food for the adults.

BRAND AWARENESS

From the responses of the respondents in the conducted survey it was evident than Maggi’s
Brand awareness was very high in terms of noodles were around 65 % of the respondents
associated magi as noodles and only 20% of the respondents knew Maggi as a Ketchup,
9% as soup etc.

The trend indicated that Maggi’s 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.

The company’s 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 health product with 53% of them consumed Maggi’s traditional
products as compared to the rest who consurned other variants of Maggi’s brand that were
positioned as “Healthy products”.
 DATA ANALYSIS & INTERPRETATION

Consumer Analysis of Nestlé Maggi

1. Consumer Demographics

Age Group:

- 18-25: 8 respondents
- 26-35: 6 respondents
- 36-45: 4 respondents
- 46+: 2 respondents

Gender Distribution:

- Male: 12 respondents
- Female: 8 respondents
Occupation:

- Students: 7
- Working Professionals: 9
- Homemakers: 3
- Others: 1

2. Purchase Behavior

Frequency of Purchase:

- Daily: 3 respondents
- Weekly: 10 respondents
- Monthly: 5 respondents
- Occasionally: 2 respondents

Preferred Pack Size:

 - Single Pack: 6 respondents
- Family Pack: 9 respondents
- Bulk Purchase: 5 respondents

Purchase Location:

- Supermarkets: 8 respondents
- Local Stores: 7 respondents
- Online: 5 respondents

3. Brand Perception & Loyalty

Brand Preference:

- Maggi: 15 respondents
- Other Brands (Yippee, Top Ramen, etc.): 5 respondents
 Brand Loyalty:

- Always buy Maggi: 12 respondents

- Occasionally try other brands: 5 respondents
- Prefer other brands: 3 respondents

Reasons for Preference:

- Taste: 14 respondents
- Nostalgia: 8 respondents
- Availability: 6 respondents
- Price: 4 respondents

4. Product Satisfaction
Taste Rating (Scale of 1-10):

- Average Score: 8.6

Texture & Quality Feedback:

- Softness & Consistency: 80% satisfied

- Seasoning Quality: 75% satisfied
- Easy to Prepare: 90% satisfied

Packaging Feedback:

- Convenient: 14 respondents
- Needs Improvement: 6 respondents
Health Perception:

- Considered Healthy: 5 respondents

- Considered Comfort Food: 15 respondents

5. Consumption Habits

How They Consume It:

- Plain: 7 respondents
- With Vegetables: 6 respondents
- As a Snack: 4 respondents
- In Recipes (e.g., Maggi Pakora): 3 respondents

Occasions of Consumption:

- Late-night Snack: 9 respondents

- Lunch/Dinner Replacement: 7 respondents
- Travel Food: 4 respondents

6. Improvement Areas

Would Like to See:

- Healthier Versions (Whole Wheat, Low Sodium): 8 respondents
- More Flavor Options: 6 respondents
- Better Pricing/Offers: 6 respondents

7. Summary & Insights

Maggi remains the preferred brand among the majority of respondents due to its taste and nostalgia.
- Frequent consumption trends indicate that Maggi is often eaten as a late-night snack and quick
meal replacement.
- Consumers prefer variety, with a demand for healthier options and more flavors.
- Brand loyalty is strong, but there is some competition from other brands.
- Key improvement areas include packaging enhancements, health-conscious variants, and
competitive pricing.

Recommendations:

- Introduce a “Healthy Maggi” variant with whole wheat and lower sodium.
- Explore new and unique flavors to maintain market interest.
- Enhance packaging for better convenience and sustainability.
 FINDINGS

1. 32 percent of the respondents prefer maggi 2-minute noodles.

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

3. 72 percent of the respondents purchase nestle maggi noodles for its quality with low
price.

4. 60 percent of the respondents purchase nestle maggi noodles whenever needed..

5. Television advertisements are a major factor in purchase decision compared to other

Medias.

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

7. 60 percent of the respondents were expecting new varieties of

maggi noodles from Nestle.

8. 38 percent of the respondents wanted a change in the quantity of present brands. The
respondents want small quantity packets.

9. 50 percent of the respondents feel that the advertisements are good.

10. 44Percent of the respondents feel that prices are cheap.

11. 49 percent of the respondents are moderately satisfied with the quality of nestle Maggi
noodles.

12. Majority (68 percent) of the respondents consider that the packing is attractive.

13. Higher percentage (60) of the respondents is awareness on contents/ingredients.

LIMITATIONS:

1. “Limited Product Innovation”: Maggi’s product portfolio has not seen significant
innovation in recent years, which can lead to stagnation and decreased market share.

2. “Dependence on Instant Noodles: Maggi’s business is heavily dependent on instant

noodles, which can be a vulnerability if consumer preferences shift towards healthier
or more sustainable. Options.

3. Limited Focus on Digital Marketing: Maggi’s marketing efforts have been focused
on traditional channels, with limited emphasis on digital marketing, which can limit
its reach and engagement with younger consumers.

4. “High Marketing Expenditure”: Maggi’s marketing expenditure is high, which can

be a strain on the company’s resources and impact its profitability.

5. Product Quality Issues: Maggi has faced product quality issues in the past, which
can impact consumer trust and loyalty.
 CONCLUSION

The food processing business in India is at a nascent stage. Currently, only. About 10% of
the output is processed and consumed in packaged form thus highlighting huge potential
for expansion and growth. Traditionally, Indians believe in consuming fresh stuff rather
than packaged or frozen, but the trend is changing. And the new fast food generation is
slowly changing. Riding on the success of noodles, Nestle India, tried to make extensions
of the Maggi brand to number of products like, sauces, ketchups, pickles, soups,
tastemakers and macaroni in the mid-1990s. Unfortunately, the macaroni and pickles.
Didn’t pick up.

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.

Maggi Today The year 2008 saw India leading in worldwide Maggi sales. The brand has
grown to an estimated value of Rs 160-170 crore and contributes at least 8-9% to Nestle
India’s top line. All the same, some 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
noodles market 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.
 ANNEXURES

Questionnaire

Section 1: Consumer Profile

1.Age Group:

[ ] Below 18

[ ] 18-25

[ ] 26-40

[ ] Above 40

2.Gender:

[ ] Male

[ ] Female

[ ] Other

3.Occupation:

[ ] Student

[ ] Working Professional

[ ] Homemaker
[ ] Business Owner

[ ] Others (Specify: ________)

Section 2: Consumption Pattern

4.How often do you consume Maggi products?

[ ] Daily

[ ] 2-3 times a week

[ ] Once a week

[ ] Occasionally

5.What type of Maggi product do you consume the most? [ ] Maggi Instant Noodles

[ ] Maggi Masala-ae-Magic (Seasoning)

[ ] Maggi Sauces & Ketchup

[ ] Maggi Atta Noodles / Oats Noodles

6.What is your favorite flavor of Maggi Noodles?

[ ] Classic Masala

[ ] Special Chicken

[ ] Vegetable Atta Noodles

[ ] Cheese & Chilli

[ ] Other (Specify: ________)

Section 3: Buying Behavior

7.Where do you usually buy Maggi products?

[ ] Local Kirana Store

[ ] Supermarket/Hypermarket

[ ] Online (Amazon, BigBasket, etc.)

[ ] Other (Specify: ________)

8.What pack size do you usually purchase?

[ ] Small Single Pack (₹12)

[ ] Family Pack (₹50-₹100)

[ ] Bulk Pack (₹100+)

9.What factor influences your purchase decision the most?

[ ] Taste & Flavor

[ ] Price & Affordability

[ ] Brand Trust
[ ] Easy & Quick to Cook

Section 4: Product Satisfaction & Feedback

10.How satisfied are you with Maggi’s taste and quality?

[ ] Very Satisfied

[ ] Satisfied

[ ] Neutral
[ ] Dissatisfied

11. Do you think Maggi is a healthy snack option?

[ ] Yes

[ ] No

[ ] Not Sure

12.Would you like to see healthier versions of Maggi (e.g., low sodium, high-protein
noodles)?

[ ] Yes

[ ] No

13.Have you noticed any new flavors or innovations by Maggi recently?

[ ] Yes

[ ] No

14.Do you prefer Maggi over other instant noodle brands like Yippee or Top Ramen?

[ ] Yes, Maggi is my first choice

[ ] No, I prefer other brands

[ ] I buy different brands based on availability

15.How do you usually prepare Maggi?

[ ] Plain with just the seasoning

[ ] With added vegetables & spices

[ ] As a soupy noodle

[ ] Other (Specify: ________)

16. Would you recommend Maggi to others?

[ ] Yes

[ ] No
17. Have you ever faced any issues with Maggi products (taste, quality, availability,
etc.)?

[ ] Yes (Specify: ________)

[ ] No

18. Do you feel Maggi’s price is reasonable for the quantity and quality offered?

[ ] Yes

[ ] No

19. What improvements would you like to see in Maggi products?

(Open-ended)

20.Any additional comments or feedback

 BIBLIOGRAPHY

www.nestle.com

https://iide.co

https://www.marketingmonk.so

https://www.maggi.in

https://en.wikipedia.org