PROJECT REPORT

ON

“RESEARCH METHODOLOGY ON NESTLE PRODUCT

MAGGI”

SUBMITTED BY:-

STELLA BALASUBRAMANIAM

ROLL NO: - 46

MASTER OF COMMERCE (PART-II)

ADVANCED ACCOUNTANCY

(SEM-III)

2015-2016

PROJECT GUIDE:-

PROF.

K.G JOSHI COLLEGE OF ARTS & N.G.BEDEKAR

COLLEGE OF COMMERCE.

1

VIDYA PRASARAK MANDAL, THANE

K. G. JOSHI COLLEGE OF ARTS &

N. G. BEDEKAR COLLEGE OF COMMERCE

CERTIFICATE

OF

PROJECT WORK

This is certify that Mr. / Ms. This is certify that Mr. / Ms. STELLA BALASUBRAMANIAMSTELLA BALASUBRAMANIAM Of Of

M.Com. (Advanced Accountancy) Part.: II, Semester: 3rd Roll No. : 46, hasM.Com. (Advanced Accountancy) Part.: II, Semester: 3rd Roll No. : 46, has

undertaken & completed the project work titled undertaken & completed the project work titled “RESEARCH METHODOLOGY“RESEARCH METHODOLOGY

ON NESTLE PRODUCT MAGGI”.ON NESTLE PRODUCT MAGGI”. During the academic year 2015-2016 During the academic year 2015-2016

Under the guidance of Mr. / Ms. Prof.Under the guidance of Mr. / Ms. Prof...

Submitted on _____________ to this college in fulfilment of the curriculumSubmitted on _____________ to this college in fulfilment of the curriculum

of of MASTER OF COMMERCE ( ADVANCED ACCOUNTANCY ) MASTER OF COMMERCE ( ADVANCED ACCOUNTANCY )

UNIVERSITY OF MUMBAI.UNIVERSITY OF MUMBAI.

This is a bonafide project work & the information presented is True &This is a bonafide project work & the information presented is True &

original to the best of our knowledge and belief .original to the best of our knowledge and belief .

PROJECT GUIDE EXTERNAL EXAMINERPROJECT GUIDE EXTERNAL EXAMINER

2

DECLARATION:-

I Ms. STELLA BALASUBRAMANIAM student of K.G. JOSHI COLLEGE

OF ARTS & N.G.BEDEKAR COLLEGE OF COMMERCE. (SEM-III,) HERE

BY DECLARE THAT I HAVE COMPLETED THIS PROJECT ON

“RESEARCH METHODOLOGY ON NESTLE PRODUCT MAGGI” in

the academic year 2015-2016.

The information submitted is true and original to the best of my knowledge.

DATE:-

Student signature

STELLA BALASUBRAMANIAM

PLACE: - THANE

3

ACKNOWLEDGEMENT:-

I express my grateful thanks’ to project guide Prof.

For her timely guidance and help rendered at every stage of the project work.

I would also like to thank my friends who were also a great support while

working on the project.

I also wish to express my regards to the librarian for her co-operation in

providing me with necessary reference materials.

I also express my thanks to faculty members and for co-operation and

help given in completing this project.

4

INDEX

Sr. No. Topic Page No.

1 EXECUTIVE SUMMARY

2 INTRODUCTION

3 MAGGIE BRAND IN INDIA

4 WHY SPECIFIC BRAND POSITIONING?

5 MAGGIE BRND EXTENTION

6 PRICE AND PRODUCT DEVELOPMENT

7 PRODUCT VARIENTS

8 MARKET SHARE

9 RESEARCH METHODOLOGY

10 ARTICLE OF ECONOMICS TIMES

10 SURVEY RESULTS

11 HYPOTHESIS & FINDINGS

12 SWOT ANALYSIS

13 STPD ANANYSIS

14 CONCLUSION

15 QUESTIONNAIRE

16 BIBLOGRAPHY

5

6

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 Nestlé in 1947. Today, Maggi is a leading culinary brand and

part of the NESTLÉ family of fine foods and beverages. Under the Maggi brand, which is

today known worldwide for quality and innovation, Nestle offers a whole range of products,

such as packaged soups, frozen meals, prepared sauces and flavourings.

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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

paratha 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 homemade

snack! Despite this, Nestlé 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 worked wonders for the brand.

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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 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 it’s a hit with her! What’s 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!

BRAND STORY:-

Launched in 5 flavours 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 could promote 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 awareness. In the initial years, Nestle

promotional activities for Maggi included schemes offering gifts (such as toys and utensils)

in return for empty noodles pack.

According to analysis the focus on promotion turned out to be the single largest factor

responsible for Maggi’s 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 Maggi’s extensions also made considerable use of

promotional schemes. The focus of all Maggi’s 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 “mummy bhookh lagi

hai, bas do minute” and fast to cook good to eat Maggi’s popularity became highly attributed

9

to its “extremely high appeal to children”. As a result, Maggi’s annual growth reportedly

touched 15% during its initial years.

MAGGI’S BRAND EXTENSION:-

In 1998, Nestle launched Maggi’s 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 soups only to cash in on the Maggi’s brand name, and was never very serious

about the segment.

In 1993, “Sweet Maggi”, the first variant of Maggi noodles 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

were 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 cheaper packaging material, the company also introduced

“money saver multi packs” 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. Maggi’s

euphoria was, however, short lived, as sales stagnated in 1995 at the previous year’s level.

With soup business being threatened by a new entrant “Knorr soups” launched in 1995,

offering 10 flavours against Maggi’s 4 the company started rethinking its strategies towards

the soup market. In order to stretch Maggi’s brand to include Indian ethnic foods the

company tied up with a Pune based cordial 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 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 Nestlé seemed to be

particularly bad at dealing with traditional Indian product categories. Maggi noodles

10

performed badly in 1996. Despite slow sales in the previous two years, Nestlé had set a sales

target of 25,000 tonnes for the year. However, Maggi couldn’t cross even 14,000 tonnes.

Adding to the company woes was the failure of Maggi Tonight’s 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, Nestlé 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 new product

avenues, Nestlé 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 flavours, Tomato, Chicken,

and Masala. The company expected to repeat the success of Maggi noodles with Maggi

Macaroni. As with most of its product launches, Maggi Macaroni’s launch was backed by a

multi-media advertisement campaign including radio, television, outdoors and print media

with the tagline, ‘Tum Roz Baby. The product’s 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, Nestlé 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, Nestlé had to

withdraw Maggi Macaroni completely from the market.

Nestlé had not even recovered from Macaroni’s 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 its ketchups 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, ‘It’s

11

different.’ However, during mid-1997, HLL began promoting its Kissan range of sauces

aggressively and launched various innovative variants in the category. Nestlé 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.

PRICING AND PRODUCT DEVELOPMENT:-

It was at this point in time that Nestlé 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 tastemaker’s 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 Nestlé by surprise. With volumes

declining and customer complaints increasing, the company began to work on plans to

prelaunch ‘old Maggi’ to win back customers. In addition, in 1998, Nestlé began working out

a strategy to regain Maggi’s 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 was made much more attractive. However, Knorr took Nestlé

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. The prelaunch

prompted market observers to compare Nestlé’s move with US soft drinks major Coca-Cola’s

‘New Coke’ fiasco. However, the company disagreed, “It’s a hard-5 nosed strategy that

mixes nostalgia with the consumer’s voiced preference for the product it has been bred and

rough up on. The reintroduction is Nestlé’s acknowledgement of the loyalty of the Indian

mother and the child to the original product.” By May 1999, Nestlé’s decision to bring back

the ‘old Maggi’ seemed to have paid off. Two months after the prelaunch, the monthly

average sales of Maggi noodles n the northern region rose 50% in comparison to the previous

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year. In July 1999, ‘Maggi’ the brand, was promoted as the biggest brand in Nestlé’s

portfolio of brands in India, overtaking brands such as Nestum and Cerelac. Nestlé 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, Nestlé 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, Nestlé claimed to have

cornered an 81% market share of the 20,000 tonnes noodles market by the end of 1999.

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-Minute Noodle ( Masala , Chicken, Curry

and Tomato)

Maggi Dal Atta Noodles ( Sambhar taste)

Vegetable Atta Maggi Noodles

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Maggi Rice Noodles (Lemon Masala, Chilly Chow and Shahi Pulao)

Maggi Cuppa mania (Masala yo, Chilli chow yo)

2. Sauces

Teekha masala

Tomoto chatpat

Imli khata mitha

Tomato ketchup

Hot and sweet

Tomato pudina

Ginger, Garlic & Coriander

Maggi Oriental Chilli Garlic

Ginger, Garlic & Coriander

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 Vegetables

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5. Maggi soup sanjivni

Amla

Badam

Spinach

Dal

Tomato

6. Maggi bhuna masala

Bhuna masala for gravy dishes

Bhuna masala for vegetable dal

7.Maggi magic cubes

Chicken

Vegetarian masala

MARKET SHARE

15

45%

55%

Maggi's Market Share in Ketchup Category

Maggi

Others

80%

20%

Maggi's Market Share in Noodles Category

Maggi

Others

RESEARCH METHODOLOGY:-

OBJECTIVES

To understand the influence of Maggi as a brand on consumers mind set.

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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.

RESEARCH PLAN

Research Design:

The research will be carried out in the form of a survey which will be done in areas near to

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.

DATA COLLECTION PLAN:-

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 and nearby areas where the responses of consumers would be recorded

17

through a designed questionair.Secondary research would include various aspects of Brand

management through Internet , Journals, company reports , expert views etc.

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

early 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. "Nestlé’s investment on Maggi has been squarely disproportionate to

the growth of the brand," Mumbai-based equity research firm ASK Raymond James senior

vice-president (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.

18

Interestingly, it is only now, during Donati's second stint, in the country that the brand

has stabilized. "Maggi noodles have seen a robust double-digit growth in sales during the last

four years," said Donati. Last year, Nestle India launched Chinese Noodles as a snack food

for the adults.

METHOLODOGY:-

The research will be carried out in the form of a survey. This will include primary research in

addition to secondary research as stated below. The survey 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 company’s

strategy of repositioning it to a healthy product by the launch of some of the new

products?

Which product from the entire basket of Maggi products do the consumers consider as

the best selling product for Maggi and to which the consumers frequently buy?

Are the consumers willing to accept Maggi brand extensions to some other products

like chocolate, juices, chips etc?

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HYPOTHESIS DONE FOR MAGGI NOODLES:-

Quick food styles are catching up fast because of more number of working couples,

domestic fuel crisis, non availability of reliable domestic servants and breaking up of joint

family system. Neither time nor patience to prepare the ingredients and wholesome food in

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the house itself, the high price of ingredients and ready mix are also a significant factor

responsible for the spectacular increase in the demand for maggi noodles products.

HYPOTHESIS

1. There is no significant relationship between the impact of media and purchase decision.

2. There is no significant relationship between influencers and purchase decision.

3. There is no significant relationship between preference for more new varieties and

Purchase decision.

4. There is no significant relationship between quality of noodles and purchase decision.

METHODOLOGY

The study is based on primary data. The data were collected through

interview method by using a structured questionnaire. For the purpose of the

study the data have been collected in different places of the market especially in

21

retail shops. One hundred and twenty five nestle maggi noodles customers were

randomly selected for the study as sample.

Necessary data have also been collected from sources like books, magazines

and internet. Chi-square test has been applied for testing the hypotheses.

SWOT ANALYSIS OF MAGGI:-

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

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SWOT ANALYSIS

STRENGTHMarket leader in their segmentStrong brand loyal consumer baseWide range of distribution channelProduct according to the need of Indian consumerInnovative Product

WEAKNESSProduct are dependent on each

otherNot so much presence in rural

market

OPPORTUNITYIncreasing number of working youthProduct has been acceptable in youth

categoryShift to rural market

Changing preference of consumer towards Chinese food and fast food.

Can foray into other food markets with its strong Brand name

THREATPrice war with competitors.Strong presence of regional

competitorsConsumers don’t perceive it as

a “Healthy Product”

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.

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

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products. Maggi Brand has segmented the market on the basis of lifestyle and habits of

URBAN FAMILIES.

Target: 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.

CUSTOMER BASED BRAND EQUITY PYRAMID (CBBE):-

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Maggi’s customer based brand equity pyramid seems to be equally strong on left hand side

and right hand side; it is also strong from bottom to top enjoying the highest brand awareness

of any fast food noodle brand in India as well as repeat purchase rate and high customer

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

25

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 didn’t pick up as expected. The

soups and sauces did somewhat fine, gathering considerable sales volumes and have a

satisfactory presence even today. ‘Maggi Noodles’ itself faced a bit of difficulty with respect

to ‘taste’, and nearly lost its position in the minds of Indian consumers in the late 1990s.

When Nestle changed the formulation of its tastemaker, the ominous packet that came along

with Maggi Noodles, a major chunk of consumers were put-off and sales started dropping.

Also, Maggi’s competitor ‘TopRamen’ took advantage of the situation and started a parallel

aggressive campaign to eat into Maggi’s market share. But the company quickly realised this

and went back into making the original formula coupled with a free sampling campaign. This

helped Maggi to win back its lost consumers and pushed up its sales volumes again!

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.

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

26

key to success. Targeting these segments will not only enhance the company’s

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 Maggi’s

market share.

FUTURE PLANS

- Nestlé India’s objective is to manufacture and market the company’s 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.

- Maggi’s 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.

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.

BIBLOGRAPHY:-

www.google.com

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www.wikipedia.com

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