MARKETING STRATEGY OF MAGGI (NESTLE)

SUBMITTED BYHARDEEP SINGH BBA 6

MAGGI
TH

SUBMITTED TOMR-Rajiv Bhandari

SEM, SEC A
Page 1

CERTIFICATE

TO WHOM IT MAY CONCERN

THIS is to certify Mr./Ms.__________________________student of BBA VI semester in our institute has successfully complete his/her project entitled _________________________________________________________________ for the partial fulfillment of the Bachelors of Business Administration degree.

(NAME OF THE HOD) Head of the Department DR. S.M MEHNDI.

(NAME OF PROJECT GUIDE) Project Guide MR. RAJIV BHANDARI.

MAGGI

Page 2

PREFACE

As a part of my curriculum in Bachelor of Business Administration through Invertis Institute of Management Studies, Bareilly. I had done my project report on MARKETING STRATEGY OF MAGGI (NESTLE).Which would lead to develop my Skills and some sort of practical knowledge. The entire project schedule and format were drawn and executed under the valuable guidance and supervision of project guide MR. RAJIV BHANDARI and faculty members of my college. The ensuring project report summarized the information gathering.

MAGGI

Page 3

ACKNOWLEDGEMENT
A successful completion of any task would be incomplete without thinking those who made it possible .In every step of achieving goal, there is need of guidance , inspiration and help.

I express my profound gratitude and heartily thanks to my guide LECT. RAJIV BHANDARI for providing me the deep insight into the project , under whose guidance I was able to take initial steps in the corporate world and also have the feel of the market.

I am also thankful to our H.O.D (MR- S.M MEHNDI) and other teachers also for their valuable guidance and keen interest in my encourage to complete my project work interestingly .I would like to take this opportunity to extend our heartfelt gratitude, for their immense support and guidance throughout the project. They guided us and gave valuable inputs and advise at every stage of my project.

I am also thankful to my parents and my friends who have been a source of inspiration and information for me.
MAGGI Page 4

List of Contents.
1-preface............................................................................. 2-Acknowledgement........................................................... 3-Executive summary......................................................... 4-The companys history................................................... 5-Management structure..................................................... 6- Introduction of maggi..................................................... 7- Maggi logo.. 8-Various product of maggi................................................ 9-Management strategies 4ps evaluation........................... 10-STDP Analysis............................................................... 11-SWOT Anaysis............................................................... 12-Demography & psychology of consumer...................... 13-Sales & marketing channels........................................... 14-Distribution channels...................................................... 15-Strategies of nestle maggi............................................... 16-Research Methodology................................................... 17-Data Collection............................................................... 18-Analysis.......................................................................... 19-Success factor of maggi.................................................. 20-Conclusion...................................................................... 21-Recommendation............................................................ 22-Biblography....................................................................

MAGGI

Page 5

EXECUTIVE SUMMARY

The report entitled MARKETING STRATEGY OF MAGGI (NESTLE) deals with the strategy of Maggi that was launched in India in the year 1983, by Nestle India Limited, which became synonymous with noodles. This research tries to find awareness of Maggi & its product line with that of its competitors. The introduction provides the company background, operational & other important information provided by the company, which would assist in taking the decision for the marketing strategy for Maggi.

MAGGI

Page 6

THE COMPANYS HISTORY.

Year 1870 At the Universal Exhibition, Maggi won several medals and grand prizes. Jules Magi set up home The Swiss Julius Michal Johannes Maggi (1846-1912) inherited the family business: a mill in Kemptal, near Zurich. Year 1886 Several women were factory workers, thus the time available for housework and the preparation of meals was considerably reduced, and working class families suffered from poor nutrition. In view of this state of affairs, the doctor Schuler recommended the wide use of dried vegetables: peas and beans, given their rich nutritive value. Julius Maggi produced appliances for roasting and grinding these vegetables, to make flour from peas, beans, lentils etc., and enabling housewives to make a quick nourishing soup. Year 1900 At the Universal Exhibition, Maggi won several medals and grand prizes. Jules Magi set up home in Paris. The French head office was on the Place de lOpra, and the factory on the Boulevard Arago. Maggi now had depositories in Paris, Berlin, Singen (Germany), Vienna and Bregenz (Austria). A number of advertising texts written by Franck Wedekind had strong military undertones: Year 1947 Maggi merged with the Nestle India firm. Year 1948 So pad took over from Nestle to handle production and marketing for Nestle and Maggi products in France. Maggi now had eleven factories through out the world Year 1982 Nestle India Ltd. introduced Maggi to the Indian consumers with the launch of Maggi 2 Minute Noodles, an instant food product, in 1982. With the launch of Maggi noodles, Nestle India Ltd. created an entirely new food category -instant noodles - in the Indian packaged food market.
MAGGI Page 7

Year 1997-1999: Nestle changed the taste of Maggi noodles, but it proved to be a failure. In 1999,Maggi reintroduces the old formulation and revived sales with the punchline- Fast to Cook, Good to Eat. Year 2000Maggi noodles became the leader in instant noodles space. Year 2005Marketing strategy to keep Maggi brand fresh and as a health product with its tagline Health Bhi -Taste Bhi with the launch of Maggi Atta noodles. Year 2009Maggi celebrates 25 years of Maggi noodles with Me and Meri Maggi campaign and the launch of Maggi Pazzta. This campign invited consumers to share their Maggi moments. As a part of this promotional drive, magi launched a website, where the consumer could upload their Maggi moments and their favourite recipes or stories hit with the company will get a chance to be featured on Maggi packets or ads. Year 2012 Maggi has generally stayed away from the celebrity endorsements. In general ,mother and child have been the celebrities for Maggi for the longest time. With its only exceptions, when Preity Zinta promoted the Rs.5 Chotu Maggi and the family packs.

MAGGI

Page 8

Recently, Amitabh Bachchan has been made the brand ambassador of Maggi. Maggis Do minute Mein Khushiyan with Amitabh Bachchan was launched in 2012. Of late, the brand had been facing some competition from other brands in the same segment like, Top Ramen, Sunfeast Yippie, Wai Wai, etc. In addition, the brand was feeling a disconnect with the newer generation who have many choices in food indulgence. Big B in the new campaign is a story teller who narrates the stories given by the consumers. The aim is to bring back the segments of consumers who moved away from the brand since they have grown up. A powerful celebrity as a brand ambassador adds a big boost which is the need of the hour for Maggi with so many competitors around. The problem with such a heritage brand is that the communication becomes boring over a period of time. And it needs the right energy to move ahead and face the competition.

MAGGI

Page 9

Management structure

MAGGI

Page 10

INTRODUCTION TO MAGGI.
Maggi is a nestle brand of instant soups, stocks, bouillon cubes, ketchups, sauces, seasonings and instant noodles. The original company came into existence in 1872 in Switzerland, when Julius Maggi took over his father's mill. It quickly became a pioneer of industrial food production, aiming at improving the nutritional intake of worker families. It was the first to bring protein-rich legume meal to the market, which was followed by ready-made soup based on legume meal in 1886. In 1897,Julius Maggi founded the company Maggi GmbH in the German town of Singen where it is still established today
MAGGI Page 11

Maggi Comes to India teething troubles Maggi noodles was launched in India in theearly1980s. Peter Brabeck-Letmathe, 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 home made snacks like pakor as 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 sales after the initial phase. The reason being, the positioning of the product with the wrong target group. Nestle had positioned Maggi as a convenience food 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 wo rked wonders for the brand Maggi was positioned as 2-minute noodles with a punch line that said Fast to cook! Good to eat! And this gave the implied
MAGGI Page 12

understanding to the consumer t h a t i t wa s 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 mind set 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 the housewife 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! Maggi noodles was launched in India in 1984 by Nestle. It is today the highest sold noodles in India. With 60% market share (2010 report) in its bowl, Maggi Noodles continues to be an undisputed leader for almost 30 years. Back in 1980s, instant noodles was an entirely new category. Now, the challenge was to establish an alien product and yet find a relevant consumption benefit in the market. Maggi was therefore, positioned as snack made for children who like to experiment food and was billed as a fast to cook and good to eat snack. The Rs. 2.50 per 100gm Maggi was an instant success. Mummy Bhook Lagee- Bas Do Minute was a rendition of this approach. It fit well with the mothers child caring relationship. These ads became so popular that Bas Do Minute instantly reminded Indian consumers of Maggi noodles. Health Factor was gaining importance. Several other brands, for example, HUL launched the Knorr Soupy noodles for a healthy afternoon snacking option. Maggi did not want to stay behind. It rolled out a new noodle with multi-grain variant called Multigrain and aggressively advertised it as a nutritious food for kids. Apart from noodles, Maggi has sauces and soups available in various flavours. But, Maggi tops it all by being the market leader with the maximum share. Some more

MAGGI

Page 13

products in its kitty are Maggi Cuppa Mania, Maggi Masala and Maggi Magic Cubes.

OBJECTIVES
To study Marketing strategies of MAGGI. To study SWOT (Strength, Weakness, Opportunity, Threat)analysis. Various product of maggi Management strategies 4ps evaluation STDP Analysis
MAGGI Page 14

Demography & psychology of consumer. Sales & marketing channels Distribution channels Success factor of maggi

MAGGI LOGO

A logo is a mathematical element (ideogram, symbol, emblem, icon, sign) that, together with its logotype (a uniquely set and arranged typeface) forms a trade
MAGGI Page 15

mark or commercial brand. Typically, a logos design is for immediate recognition. The logo is one aspect of a companys commercial brand, or economic or academic entity, and its shapes, colours, fonts, and images usually are different from others in a similar market. Logos are also used to identify organizations and other non-commercial entities. Today there are many corporations, products, brands, services, agencies and other entities using an ideogram (sign, icon) or an emblem (symbol) or a combination of sign and emblem as a logo. As a result, only a few of the thousands of ideograms people see are recognized without a name. It is sensible to use an ideogram as a logo, even with the name, if people will not duly identify it. Currently, the usage of both images (ideograms) and the company Name (logotype) to emphasize the name instead of the supporting graphic portion and making it unique, by it non-formulaic construction via the designable use of its letters, colors and any additional graphic elements. Carlo Donati gave the Maggi word to the product range to continue the image ofhealthy and fast to cook food for workingwomen which was introduced by Julius Maggi Etienne Maurice Firm in Bouis set (September 2, 1859 1925) was a French painter, poster, artist and printmaker who developed and designed the logo of Maggi

VARIOUS PRODUCTS
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-Minute 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)

2. Sauces
MAGGI Page 16

 Teekha masala Tomoto chatpat Imli khata mitha Tomato ketchup Hot and sweet Tomato pudina Ginger, Garlic & Coriander Maggi Oriental Chilli Garlic

3. Maggi Pichko 4. Soups Healthy Chef Style -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 Vegetable

5.Maggi soup sanjivni Amla Badam

MAGGI Page 17

 Spinach Dal Tomato 6. Maggi bhuna masala Bhuna masala for gravy dishes Bhuna masala for vegetable dal

7.Maggi magic cubes Chicken Vegetarian masala

MANAGEMENT STRATEGIES 4Ps EVALUATION

Price: 1. Considering the price points in the market for maggi, it should continue to position itself in the Snacks. Affordable by all income groups Differentiated packaging Lower price point strategy Millipack for Rs.5 Targeting the lower middle class as well as those who want to consume in lesser quantity.
Page 18

2. 3. 4. 5.

MAGGI

6.

Inflation effect on volume than price - Reduction of 100gm pac k to 95gm, keeping price as Rs. 10 only Multi packs at cheaper price per noodles Healthier products at higher price. Differentiated packaging.

7. 8.

Place: 1. 2. 3. 4. 5. 6. 7. Wide distribution network. Limited penetration in rural areas. The company has a complex supply chain process. Target hawkers/roadside eating joints The distribution network is well spread Easily available in all kirana stores, retail store etc. Sales territories, Warehousing system.

Product: 1. 2. 3. 4. 5. Quality Models and sizes Packing Brands Service

Promotion: 1. 2.
MAGGI

Nestle also followed up these launches with Its different ad campaigns. Nestle was focusing their ads based on childrens taste and health.
Page 19

3.

In addition to promotional activities, Maggi associated itself with mainstream television programme and advertised heavily on kids programme and channels. Maggi is now targeting its products at the entire family and not only kids. Maggi has recently launched MAIN AUR MERI MAGGI campaign in commensuration of 25 years of Maggi in India.

4. 5.

Packaging (Often referred as 5th P):1. Many consumers are not aware of the fact that packaging contributes substantially to our current standards of living. Its state-of-the-art packaging that has made certain items conveniently available to the general public and easy to handle. In the past hundred or so years, the demands producers and consumers place on packaging have developed significantly. While initially the transportation and protection of goods were the primary functions served by packaging, today, it also acts as a brand- defining marketing instrument as well as an innovative and practical shell with ever-new advantages for consumers Contemporary 21st century industrialized societies survive on a diet of the many, highly popular TV cooking series. At the same time, the number of pre-cooked, easily manageable dishes in which packaging plays a pivotal role is growing increasingly in retail outlets. Whether discounter or gourmet store, all retailers know the value of convenience. And convenience is made possible by sophisticated, market-oriented packaging solutions, which often merely need to be popped in the oven or microwave, contents and all, before serving. Packaging innovations can be seen from two varying perspectives, one wherein in adds to the basic functionality of the product through providing
Page 20

2.

3.

MAGGI

additional benefit to the consumers and second would be when it enables trials and increased usage by virtue of pack size (small). 4. The Expected product benefit is proper packaging to ensure customers a good quality, fully packed seasoning tastemaker at affordable price. The beliefs associated with a brand constitute the brand image, and the customer may have uninformed beliefs which are likely to generate a negative image about the brand. The marketer must ensure that consumers have all relevant and correct information about the brand to facilitate formation of a positive brand image. Certain beliefs developed are neutral and are more dependent on the situation or circumstances of purchase or usage of the product.

STPD ANALYSIS
Segmentation: Market Segmentation divides the heterogeneous market into homogenous groups of customers who share a similar set of needs/want sand could be satisfied by specific products. Maggi Brand have 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

MAGGI

Page 21

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 taste, flavours and packaging. Maggi have launched wide varieties of products in different flavors which can attract larger set of customers. Maggi products are also available in different sizes catering to different customer needs.

MAGGI

Page 22

SWOT Analysis
Strengths 1. Market leader in the noodles category. Anytime anyone prefers Maggi as noodles. 2. 3. It has a huge brand loyalty. It has developed the huge distribution channel network over thousands of dis tributors, retailers etc. hence Maggi is available in every shop right from the super market till food malls. Innovative products for Indian taste buds such as Maggi, Maggi masala, chicken Maggi, tomato flavor which helped them grabbing more market as customer needs variety and they loved those flavors as well. The advertising strategy for Maggi was a super hit as their tagline itself was very effective and grabbed the consumers mind.
Page 23

4.

5.

MAGGI

Weakness 1. The weakness of the product was it was earlier heavily dependent on only one flavor which consumers get bored after a time and stops buying the product which hits the market sales of the product. It contains Maida, so there are some health related issues for this product such as constipation and it does not give sufficient required proteins and vitamins to children.

2.

Opportunity 3. 4. 5. The greatest opportunity for the product Maggi is their Unexploited rural markets as so far they have mainly targeted cities anddeve loped areas. Number of youths working nowadays are increasing rapidly, so they can open new branches and employ these people and increase production and their by sales and profits by targeting rural markets. Increased affinity of Indians towards chinese cuisine creates new opportunity for Maggi to improve its taste further and capture large market share.

6.

Threat 7. 8. Presence of regional competitors e.g Yippe, Chings noodles. Price war strategies adopted by other brands like yippe (sunfeast).

MAGGI

Page 24

SALES AND MARKETING CHANNEL

Marketing channels 1. 2. 3. 4. The focus of our market channel analysis is limited to culinary products, as maggi falls under this product category. Customer upper and middle class family Strategic intent selling and promotion form the strategic intent for this distribution channel Channel Type Maggi followed a market type channel for its culinary products

Marketing Channel Strategy: 1.

MAGGI

A hybrid strategy involving both a push as well as a pull strategy is used by maggi. The push strategy employed through setting targets at various levels
Page 25

of the distribution channel and a pull strategy is exercised through aggressive advertising and in store promotion. Marketing Channel flows: Following are the different marketing flows in Maggi marketing channel 2. 3. 4. 5. 6. Physical Goods flow Information Flow Payment Flow Promotion Flow Title Flow

DISTRIBUTION CHANNEL
Physical Good Flow Nestle has 6 factories across India. From these factories, Maggi are directly shipped to CFAs (carry and forward Agencies) located in each state. Carry and forward agencies provided the warehousing facilities that are required for distribution across the state. The presence of carry and forward agencies in each state ensures that the taxes, octroi and other state level charges applied are lower. The next entity in the channel is the distributer. There are two major types of distribution. 1. 2. Distribution Targeting Traditional trade Distribution targeting modern trade

Distributors Focused on traditional trade deal with 1.

MAGGI

Wholesalers for reaching areas with spares demand

Page 26

2.

Retailers in area of high demand

Wholesalers distribute Maggi products to smaller stockiest and retailers. Retailer stores are segmented based on their per week order. There are four board categories 1. 2. 3. 4. Super A- Supper High Volume retailers A High volume retailers B Medium volume retailers C Low

Each distributer covers close to 400- 500 retail stores. The product is shipped from the distributer to the wholesaler or retailer as per the order taken by the distributer sales men. There is a one day delay between talking an order and distributing the product. Modern trade involves retail stores chains. Ex: Big Bazaar, Reliance Fresh etc. They are serviced Through specially designated distributors. The number of distributors supplying goods to these major retailers is smaller than that of traditional trade.

MAGGI

Page 27

DEMOGRAPHY AND PSYCHOGRAPHY OF CONSUMERS

MAGGI Page 28

Demography:1)Age and sex: Maggi products are consumed by people of different age groups. They are consumed by children, teenagers, adults as well as old people. They are consumed by both genders male and female. 2)Income :- Maggi products are available at reasonable prices. So they are consumed by the lower, middle as well as the higher class. 3)Religion and nationality:- Maggi products are famous and are consumed by people of all religions and nationality. Psychography:1) Attitude:- Consumers of maggi have a positive attitude towards the product which makes it the leader in the market. Maggi dominates the market. 2) Lifestyle:- Lifestyle determines the way of living of people. It describes how a consumer leads his life. Maggi products are consumed by all.

STRATEGIES OF NESTLE MAGGI

MAGGI also targeted the house lady by introducing the health noodles. These can be consumed as the complete food which gives the calorie & meet all necessary
MAGGI Page 29

health requirement. For these variants they introduced the new positioning Taste bhi , health bhi. Nestle at the initial stage was targeting on the house lady .But very soon it realizes that its target segment is not them. It came to know that most of the child & teenager. So they changed their positioning of two minutes noodles which is targeted for the teenagers for their convenience & they can easily make it. Marketing strategy to keep Maggi brand fresh and as a health product with its tagline Health Bhi -Taste Bhi with the launch of Maggi Atta noodles. Maggi celebrates 25 years of Maggi noodles with Me and Meri Maggi campaign and the launch of Maggi Pazzta. This campign invited consumers to share their Maggi moments. As a part of this promotional drive, maggi launched a website, where the consumer could upload their Maggi moments and their favourite recipes or stories hit with the company will get a chance to be featured on Maggi packets or ads. Maggi has generally stayed away from the celebrity endorsements. In general ,mother and child have been the celebrities for Maggi for the longest time. With its only exceptions, when Preity zinta promoted the Rs.5 Chotu Maggi and the family packs. Recently, Amitabh Bachchan has been made the brand ambassador of Maggi. Maggis Do minute Mein Khushiyan with Amitabh Bachchan was launched in 2012. Of late, the brand had been facing some competition from other brands in the same segment like, Sunfeast Yippie, Wai Wai, etc. In addition, the brand was feeling a disconnect with the newer generation who have many choices in food indulgence. Big B in the new campaign is a story teller who narrates the stories given by the consumers. The aim is to bring back the segments of consumers who moved away from the brand since they have grown up. A powerful celebrity as a brand ambassador adds a big boost which is the need of the hour for Maggi with so many competitors around.
MAGGI Page 30

The problem with such a heritage brand is that the communication becomes boring over a period of time. And it needs the right energy to move ahead and face the competition.

Maggi Hungroo Masala Noodles 450g

MAGGI Page 31

We all lead a busy life - a life full of activities and lots of action. After all the action, your hunger gets bigger. You are not just hungry, you become Hungrooo. So, to answer your call for a bigger hunger, your favorite Masala MAGGI now comes in a bigger pack MAGGI Hungroo, 50% more of your delicious Masala MAGGI Noodles

Research Methodology

MAGGI

Page 32

Methodology
The research includes secondary research .

DATA COLLECTION PLAN

Data Gathering This study involves data collection (Secondary data) from different websites Newspaper & Magazines

Literature Review
The part of our study would include Secondary research. Secondary research would include various aspects of Marketing strategy through Internet etc.

ANALYSIS
MAGGI Page 33

Maggi is having the best channel, as the product is easily available at almost each& every store. Next comes the top ramen which is also established in the market from long time but brands like Knorr, Sunfeast, Horlicks is not available at stores& if it is available its not been sold. Pricing has been a very important factor when it comes to the sales of Maggi products and retailers emphasize on the fact that customers want a good price as there are competitors coming in the market. Television is the medium from which people are aware and enlightened about the brand MAGGI. Its also been observed that Maggi has the best mind -share among all the brands that were researched in the project. Also, apart from it being a readyto-eat product with fun, Maggi as a brand is perceived as a family product amongst the other brands.

SUCCESS FACTORS OF MAGGI

Quick Localization
MAGGI Page 34

One major factor for Maggis success was its quick localization. We have been eating Maggi since our childhood, for about 15 years, we never knew that Maggi was a foreign brand until we read Wikipedia just before writing this article. How many times had you seen the wrapper of Maggi Noodles packet? Many times! Everybody likes reading everything thats written on wrapper; in fact it has become a hobby that we dont even know about consciously. So Maggi has a simple presentation of itself to people in India. Every common Indian knows the tagline of maggi - 2-minute noodles. And Maggi was famous in the flavor of Masala. Happens to mean spice in India. So to a common Indian, Maggi Masala sounds very logical and Indian. Never did Maggi put any fancy English tag lines nor did it endorse its product as a foreign brand though it could have. Its almost like they hid their real identity of being a foreign brand simply by not revealing the fact neither in ads nor in the wrapper or anywhere else The advertisements that endorsed Maggi in the Television, picture, a small girl and a boy waiting eagerly for her mom to cook and serve Maggi. Once served, they happily eat their meal and go to play. To add, there was no hint of foreign hand in the brand. So they kind of Indianized Maggi , established as a brand that every Indian can identify with and buy that product without any hesitation.

CONCLUSION
MAGGI Page 35

The food processing business in India is at a nascent stage. Currently, only about10% of the output is processed and consumed in packaged form thus highlighting huge potential for expansion and growth. Traditionally, Indians believe in consuming fresh stuff rather then packaged or frozen, but the trend is changing and the new fast food generation is slowly changing. Riding on the success of noodles, Nestle India, tried to make extensions of the Maggi brand to a number of products like, sauces, ketchups, pickles, soups, tastemakers and macaroni in the mid-1990s. Unfortunately, the macaroni and 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 Yippe 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 2011saw India leading in worldwide Maggi sales. The brand has grown to an estimated value of Rs 160-170 crore and contributes at least89% to Nestle Indias 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.

MAGGI

Page 36

RECOMMENDATION
After the conducted study following recommendations could be sited for Maggi Brand 1. 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 attributes related 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.
FUTURE PLANS:-

2.

3.

1.

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 business partners. 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.

2.

MAGGI

Page 37

3.

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 .

MAGGI

Page 38

BIBLIOGRAPHY

Websites:www.nestle.in www.maggi.in www.wikipedia.com

Newspapers and Magazines

MAGGI

Page 39