Académique Documents
Professionnel Documents
Culture Documents
OF MAGGI
A CASE STUDY
PROJECT REPORT
ON
SUBMITTED TO
DEPARTMENT OF COMMERCE
KOTI, HYDERABAD
B.COM. (HONOURS)
H.T.NO. 2014-1801
PROJECT SUPERVISOR
ASST.PROF.G. SARITA
FACULTY MEMBER
DEPARTMENT OF COMMERCE
I am thankful to my friends and lecturers for their unconditional help and support I
wish to place on record my sincere thanks toPROF.B. SANDHYA RANIhead
Department of commerce, Osmania University College for women, koti,
Hyderabad for her constant inspiration.
Year2013-2016
Date:10-3-2016
CERTIFICATE BY THE GUIDE
Date: 10-3-2016
DECLARTATION
CHAPTER-1
INTRODUCTION
OBJECTIVES OF THE STUDY
RESEARCH METHODOLOGY
LIMITATIONS OF STUDY
CHAPTER-2
CHAPTER-3
COMPANY PROFILE
RELAUNCH IN INDIA
CHAPTER-4
CHAPTER-5
SUGGESTIONS
CONCLUSION
BIBLIOGRAPHY
ANNEXURE
INTRODUCTION
Marketing strategies explain how the marketing functions fits in
with the overall strategy for a business
tactics. You can have tactical plans which help you to achieve
your overall marketing strategy.
OBJECTIVESOFSTUDY
To present the swot analysis of Maggi
To understand the marketing and promotional
strategies adopted by nestle Maggi
To analyze the perceptions of consumers towards
Maggi
SOURCES OF DATA COLLECTION
Primary data
The primary data used in this report includes the structured
questionnaire throughwhich consumer responses are collected
regarding their views towards Nestle Maggi.
Secondary data
The secondary data has been collected from various websites and
books. It also includes data from company and other referral sites
and sources.
LIMITATIONS OF STUDY
There are many companies offering ready to eat products in
the market but the study is limited only to Nestle Maggi and
also further it is confined only to Maggi noodles.
The sample size is only 30 respondents so the result may not
be appropriate.
INTRODUCTION TO MARKETING
STRATEGIES
Costs
Each marketing strategy has costs you must evaluate in terms of
how effectively you spend your money. An e-mail campaign may
be relatively cheap, but it could waste your marketing message
by getting lost in your customers’ spam filters. Magazine
advertising, on the other hand, may cost more than you can
afford.
Direct mail can be cheaper than print ads, but your product or
service may not be well-suited to this kind of campaign, so you
could be wasting your money. You must constantly weigh costs vs.
benefits for any marketing strategy, so that you use your
marketing dollars wisely.
Branding
Your marketing strategy creates an impression of your company. If
the strategy for a specific product or service is ineffective, you
can give your customers the impression that you are not a viable
company. You must decide how much of your marketing strategy
should focus on promoting your brand and now much of it should
tout the specific benefits of a particular product. One way to
handle this dilemma is to divide your marketing into two phases.
In the first phase, focus your marketing on the product. Once it
gains acceptance, tie your brand to that product. Because
consumers already have a favorable impression of the product,
they will be likely to transfer that favorable impression to your
brand. This strategy minimizes the disadvantage of harming your
brand when the public does not like a product.
Effectiveness
Any marketing strategy that does not allow you to measure
effectiveness puts you at a disadvantage. You can continue an
ineffective marketing strategy indefinitely if you don’t have some
way to measure how well it works. A marketing strategy that
contains measurable objectives offers you the advantage of
continuing plans that work. You can build effectiveness into your
marketing strategy by expressing your objectives in terms of
numbers. For example, “we will increase sales by 20 percent” is
effective; “we will increase sales” is not.
MAGGI STRATEGY
The needs that the product is trying to address are very explicit. It
is a tasty snack
This satisfies hunger and takes very less time and efforts for
preparation. Peoplefeel like eating Maggi because it satisfies
hunger and tastes superb.
MARKETING STRATEGY-EXPLORING
VALUE CREATION OPPORTUNITIES
Noodles industry has a wide range of
Customers
customers ranging from children (<16
years) to youth and adults (<35 years)
Primary targets consumers for Maggi
noodles are kids in the age group of4- 16
years, attracted to the product because
of its taste. Youth also like eating Maggi
because they like its taste and don’t like
putting much effort to prepare food.
Working professionals value the product
mainly because of its ease of
preparation, taste and time factor.
Company
Competitors
Brand image
Availability
ollaborators Low price
Nestle coming up with health focused
variants of Maggi (vegetable and daal aata
noodles) to target health conscious people
and to further increase its market share.
Strengths
Established Family Brand
Strong Global Corporate Brand (NIL)
Specialization in food processing category marketing and
distribution in Urban
Market leader
Pioneer and Leader so 1st mover advantage in Noodles,
Sauce, Ketchups and Soup market
Weakness
Generic Brand to Noodles in India
Low rural market presence constraints
Uniform Brand for all food category. Heavily dependent on
one flavor
Opportunities
Growing package and canned food market in India by 15%
annually.
High brand awareness of Indian consumer
Opportunity to be substitute to other snacks category of food
products.
Unexploited rural market
Increasing number of working youth
Affinity of Indians to Chinese food Health related issues
Threats
Competitors with long history in product category
internationally like, Heinz Sauce and ketchups of Heinz
Indian, Top Ramen in Noodle and Knorr Soups.
Single product focused competitors like Heinz sauce and Wai
Wai Noodles.
Les Entry Barriers in the Market segment for product
category
ITC’s strong base in Indian Market.
Substitute Product to Product Segment
Competitive pricing
Strong presence of regional competitors
Children
Children play a significant role in decision making and purchase
choices of just about anything ranging from food items to
beverages to chocolates. As consumers, children know exactly
what they want and do not experiment too much with flavor or
color.
Teenagers
On the brink of adulthood, teenagers like to emphasize and
express themselves in a manner that catches attention. They
have experimental with their food with preference towards
innovative offerings but form strong opinions which they carry
forward in life. They are also predisposed towards snack items as
they tend to feel hungry between traditional meals. They have a
lot of say about the food that they want to consume with limited
parental control.
College Students
A rise in the number of colleges and institutions of higher learning
bothgovernment owned and privately financed has enabled a
larger number of youth to graduate from their portals. This
population grew since 2000 but is set to stagnate in the forecast
period with couples actually postponing the child bearing decision
and some even rejecting the idea of having on eat all. This age
group has taken up to snacking as a way of life as they keep missing
regular meals due to erratic schedules. They have longer waking
hours and due to this the traditional three meals do not suffice
with the need for filling snacks.
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 positioningis to locate the brand in the minds
of consumers to maximize the potential benefit tothe firm. Maggi
has positioned itself in the SNACKS (Between two meals)
categoryand not in the meal category since Indians do not
consider noodles as a proper fooditem.
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.
DIFFERENTIATION
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, flavors 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.
MARKETING STRATEGY-CREATING,
DELIVERING, COMMUNICATING AND
CAPTURING VALUE
4PS EVALUATION
Price
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
Mill pack for Rs.5 — targeting the lower middle class as well
as those who want to consume in lesser quantity.
Inflation effect on volume than price – Reduction of 100gm
pack to 95gm, keeping price as Rs. 10 only
Multi packs at cheaper price per noodles
Healthier products at higher price. Differentiated packaging.
Place
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: -
Quality
Models and sizes
Packing
Brands
Service
Promotion: -
Nestle also followed up these launches with ‘It’s different’ ad
campaigns.
Nestle was focusing their ads based on children’s taste and
health.
In addition to promotional activities, Maggi associated itself
with mainstream television programme and advertised
heavily on kids programme and channels.
Maggi is now targeting it 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.
Though Maggi has been successful every time, there were times
when it faces. Challenges. Some of these are:
Year 1886– Several women were factory workers, thus the time
available for housework a. the preparation of meals was
considerably reduced, a. working class families suffered from poor
nutrition. In view 46 161 states of affairs, the doctor Schuler
recommended the wide use of dried vegetables: pea’s a. beans,
given 11616 466 nutritive values. 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.
Brand — MAGGI
Maggi is an over 100-year-old Nestle band of instant soups,
stocks, bouillons, ketchups, sauces, seasonings and instant
noodles. It quickly became a pioneer of industrial food production,
aiming the improvement of the nutrition of worker families.
The sole reason being, the positioning of the product with the
wrong target group. Nestle had position. Maggi as a convenience
food product aimed at the target group a working woman who
hardly found any time for cooking. Unfortunately, this could not
hold the product for very long. In the course of many market
researches a. 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 color pencils, sketch pens, fun books, Maggi clubs which
worked wonders for the brand.
PRODUCT LIFE CYCLE OF MAGGI
The product life cycle is the period of time over which an item is
developed, brought to market and eventually removed from the
market. First, the idea for a product undergoes research and
development. If the idea is determined to be feasible and
potentially profitable, the product will be produced, marketed and
rolled out. Assuming the product becomes successful; its
production will grow until the product becomes widely available.
Eventually, demand for the product will decline and it will become
obsolete.
INTRODUCTORY STAGE
DECLINE STAGE
As we all know that Maggi is now banned in India due to its high
lead content. Thus it is going through its declining stage now.
Nestle is conducting a lot of research and if they come up with
something new and better, then Maggi might be selling its
products in the future, or else after the declining stage, this brand
would become history in India.
MAGGI BANNEDININDIA
The Bombay High Court on Thursday set aside the countrywide
ban on nine variants of Nestlé’s Maggi instant noodles, saying the
national food regulator had acted in an “arbitrary” manner and
not followed the “principles of natural justice” while banning the
product.
The tests will be carried out within six weeks at three centers
accredited and recognized by the National Accreditation Board for
Testing and Calibration Laboratories (NABL): Vimta Labs,
Hyderabad; Punjab Biotechnology Incubator, Mohali; and CEG Test
House and Research Centre Pvt Ltd, Jaipur.
During the arguments, FSSAI had alleged that Nestle India could
not claim any relief as it had suppressed facts and attempted to
destroy evidence. The High Court, however, negated this line.
Soon after the High Court passed its order, the FSSAI and the FDA
sought a stay. The court, however, observed that Nestle India had
already said that it was not going to either manufacture or sell
Maggi noodles and refused to oblige the two agencies. The court
also allowed the company to seek approval for its tenth variant,
Maggi Oats Masala Noodles.
Nestle also argued that the food regulator had not served any
notice before ordering a ban. Nestle claimed it has been operating
in India for 30 years and had a global footprint.
The government has also filed a class action suit against Nestle
India seeking, Rs 640 crore in damages for alleged unfair trade
practices, false Y labeling and misleading advertisements.
“Nestle India respects the decision made on August 13 by the
Honourable Bombay High Court to revoke the ban order passed
by the Food Safety and Standards Authority of India (FSSAI) and
FDA, Maharashtra, on Maggi noodles and will comply with the
order to undertake fresh tests,” the company said.
MAGGIRELAUNCHININDIA
It was Diwali two days in advance for several grocery stores and
customers in the city. Departmental stores across Mumbai had a
special display Monday, right on their entry gate in bold letters:
“We are back”, “Maggi is back”. By the end of the day, several
small-time grocery shop owners admitted their entire stock had
been sold out once the word spread in the locality.
Even if, they don’t have any backup plan, they should assure
people that they are working towards it. Maggi has played a vital
role in everyone’s life and has been like their best friend in
moments of crisis. It is now very difficult for people to accept, that
their favorite brand which boasts of several varieties is not there,”
he cited.
NUMBER OF RESPONDENTS
YES NO
DATA INTERPRETATION:
From the above table it can be inferred that100% of the
respondents prefer ready to eat products available in the
market.
2. Are you a consumer of Maggi?
35
30
25
20 NO YES
15
10
5
0
YES NO
DATA INTERPRETATION:
As per the studyit is clearthat 95% of the respondents are
consumers of Maggi and rest 5% do not prefer Maggi.
NUMBER OF RESPONDENTS
MAGGI MASALA
MAGGI VEG AATA
NOODLES
MAGGI CUPPA MANIA
OTHERS
DATA INTERPRETATION:
From the above pie chart, it can be concluded that 93% of
the respondents regularly buy Maggi masala noodles, 2% of
therespondents buy Maggi veg aata noodles, 3% buy Maggi
cuppa mania and 1% buys others. it can have interpreted
that Maggi masala noodles are frequently consumed by the
respondents.
4. How long have you been buying noodles?
DATA INTERPRETATION:
As per the questionnaire circulated it is seen that 93% of the
respondents are buying Maggi noodles from their childhood
and rest of them are buying since 10 years, 5years and
2years respectively.
5. According to you which age group prefers Maggi
most?
20
15
10
41-above
5
0
4-- 12
13-26
27-40
41-above
DATA INTERPRETATION:
From the study it can be concluded that 4-12 age groups
prefer Maggi most.
6. What is the frequency (by family) of its consumption
in your routine?
25
20
15
10
5
occasionally
0
ek
y
lly
ek
ys
ys
da
na
da
da
we
we
a
io
4
o
in
a
ce
tw
as
or
e
ce
on
oc
ic
in
2
tw
on
in
ce
on
ce
on
DATA INTERPRETATION:
According to the current survey, the frequency of buying
Maggi noodles has come down i.e. 92% of the respondents
buy Maggi noodles occasionally and rest buy Maggi noodles
once a day, 2% of therespondents buy once in a week and so
on.
7. Your comment on prices of Maggi product?
30
25
20
affordable
15 high
10 low
5 low
0 high
affordable affordable
high
low
DATA INTERPRETATION:
As per the study it can be inferred that 97% of the
respondents are satisfied about price of Maggi noodles. 1%
of the respondents feel that price of Maggi is high and 2%
ofthe respondents feel that price of Maggi is low and
remaining feels that it is high.
8. How do you perceive Maggi products?
18
16
14
12
10
8 good for health
6 ready to eat
4
junk food
2
0 tasty/fun eating
od
lth
g
t
ea
tin
fo
ea
ea
to
nk
rh
n
ju
ad
fo
fu
y/
od
re
st
go
ta
DATA INTERPRETATION:
From the above bar diagram, it can be highlighted that 87%
of the respondents perceive Maggi products as ready to eat
product.
9. You came to know about Maggi from?
NUMBER OF RESPONDENTS
newspaper
radio
television
friends
others
DATA INTERPRETATION:
As per the study it is shows that 95% of the respondents know
aboutMaggi through television, 2% of the respondents know
through newspaper, other 2% of the respondents know through
friends and remaining 1% of the respondents know through radio.
10. Does the celebrity endorsement prompt you to
purchase Maggi?
100%
90%
80%
70%
60%
50% Series 2
40% Series 1
30%
20%
10%
0%
yes
no
DATA INTERPRETATION:
According to current survey it can be concluded that 93% of
the respondents are not influenced by celebrity endorsement,
only 9% of them are attracted due to celebrity endorsement.
11. Which advertisement of Maggi influenced you to
purchase Maggi after its ban?
20
18
16
14
12
10 welcome back maggi
8
6 khusiyon ki reciepe
4 mom's maggi
2
0 I miss you maggi come
back soon
gi
gi
ag
ag
meri maggi
m
im
ck
er
ba
m
e
om
lc
we
DATA INTERPRETATION:
As per the questionnaire circulated it is clear that 88% of the
respondents get influenced by the advertisement Khusiyon ki
recipe mom’s Maggi,7% of the respondents by Meri Maggi,3% of
the respondents by welcome back Maggi and 2% of
therespondents I miss you Maggi come back soon.
12. Do you think attractive advertisement help Maggi to
increase the sales?
Yes 26 96%
No 4 4%
30
29
no
28
yes
27
26
25
24
yes no
DATA INTERPRETATION:
From the study it can be inferred that 96% of the respondents
think attractive advertisement helps Maggi to increase its sale,
4% of the respondents think that attractive advertisement does
not help Maggi to increase its sale.
13. Do you think Maggi is a healthy product after its ban?
35
30
25
20
no
15 yes
10
0
yes no
DATA INTERPRETATION:
As per the research conducted it can be concluded that 91% of
the respondents do not think that Maggi is a healthy product
after its ban only 9% of the respondents still think that it is a
healthy product after its ban.
14. Do you prefer to purchase Maggi after its ban?
25
20
15
yes
no
10
0
yes no
DATA INTEPRETATION:
The above bar diagram clearly indicates that 91% of the
respondents do not prefer to purchase Maggi after its ban and 9%
do prefer to purchase it.
15. Does the Maggi ban effects your daily routine?
NUMBER OF RESPONDENTS
YES
NO
DATA INTERPRETATION:
According to current survey it can be concluded that 97% of the
respondents said that Maggi ban do not affect their daily routine
only 3% of the respondents said that it affects their daily routine.
16. Do you think fame of the Nestle Company has come
down after Maggi ban?
30
29
28
27 no
26 yes
25
24
23
22
yes no
DATA INTERPRETATION:
It is found from the above bar diagram that 95% of the
respondents think that fame of the Nestle company has come
down after Maggi ban and 5% of the respondents think that
Nestle company also have other products which are in huge
demand which keep Nestle’s reputation always high.
NUMBER OF RESPONDENTS
30
25
20
15 yes
no
10
0
yes no
DATA INTERPRETATION:
The study highlights that 97% of the respondents are still having
an emotional attachment towards Maggi and remaining 3% of the
respondents do not have an emotional attachment towards
Maggi.
30
25
20
yes
15
no
10
5 no
yes yes
no
DATA INTERPRETATION:
Through the researchit is found that 17% of the respondents think
Maggi is regaining its position with the help of online advertising.
35
30
25
poor
20
below average
fair
15
good
very good
10
0
very good good fair below average poor
DATA INTERPRETATION:
According to the study it can be concluded that 87% of the
respondents arehighly satisfied,6% of them rated it as fair and
remaining 3% rated it as very good and poor respectively.
DATA INTERPRETATION:
As per the suggestions given by the respondents it is found
that 88% of the respondents have suggested to sell healthy and
tasty Maggi, 5% suggested to sell Maggi without lead ,5%
suggested that Maggi should be good in advertising its products
and 2% suggested that it should be banned again by the
government.
Most of the respondents prefer ready to eat product
available in the market.
From the study it is found that 93% of respondents buy
Maggi masala noodles regularly because consumers feel
that Maggi masala noodles is tastier than other variants of
Maggi noodles.
Through the research analysis it is found that 93% of the
respondents buy Maggi noodles since their childhood.
Maggi noodles are mostly preferred by kids, college students
and adults.
Frequency of consumption of Maggi noodles has come down
due to the health issues.
Consumers are comfortable with the price of the Maggi
noodles as it is affordable.
95%of the consumers came to know about Maggi noodles
From television
It is found that attractive advertisements help Maggi to
increase its sales.
Nestle is targeting mainly on emotional attachments of
consumers to relaunch Maggi noodles in the market.
95%of the consumers think that fame of nestle company
has come down after Maggi ban.
Focus on creating distinctive image, based on twin benefits
of “INSTANT” and “HEALTHY” with emphasis on health
conscious.
Conduct promotional campaigns at schools in small towns
with population more than 10,000 to regain position in
market.
Strengthen the distribution channel of the rural areas within
100 km of all the metros
Company should concentrate more on television for
advertisement, as mostly people get attracted through
television only.
The company should advertise its products by depicting
attributes related to health like nutrition values, % of
vitamins, proteins, etc. this would help customers in
perceiving the product as healthy.
To gain maximum leverage in terms of profit the company
should pay emphasis on segments with age groups 25-35
and above. Targeting these segments will not only enhance
the company’s profit margin but also it wills leverage the
brand image of Maggi.
Conclusion Nestlé’s wise decision of merger with Maggi, made it
pioneer in the packaged food industry, specifically in India. Ease
of preparing yummy dishes instantly made it the first choice and
preference for all the kids and their mummas as well. Maggi’s
consistent quality, continued innovations, skill to identify the
needs of society have allowed it to grab 90% of market share
today, in instant food products LOB. Maggi has continuously been
expanding its product line, which leaves behind the image of so
called “One product concentrated Brand” and hence less fear of
being thrown out over night. Maggi has won the King Position by
its highly focused
ANNEXURE
1. Name ___________
2. Gender ___________
3. Age ___________
4. Occupation___________
5. Income ___________
6. Do you purchase ready to eat product available in the
market?
a) Yes
b) No
7. Are you a consumer of Maggi?
a) Yes
b) No
b) 13-26
c) 27-40
d) 41-above
b) Twice a day
c) Low
b) Ready to eat
c) junk food
d) Tasty\fun eating
c) Television
d) Friends
e) Others
b) No
16. Which advertisement of Maggi influenced you to purchase
Maggi after its ban?
a) Welcome back-Maggi
d) Meri Maggi
b) No
b) No
21. Do you think fame of the Nestle Company has come down
after Maggi ban?
a) Yes
b) No