PROJECT REPORT ON

(RESEARCH METHODOLOGY OF MAGGI)

SUBMITTED BY
(VARSHA.J.SINGH)
MCOM IN BANKING AND FINANCE-PART 2

2016-2017

UNDER THE GUIDANCE OF

(Prof. Dr.ROHINI KELKARAND)

SUBMITTED TO
UNIVERSITY OF MUMBAI
VIDYALANKAR SCHOOL OF INFORMATION
TECHNOLOGY
(AFFILIATED TO UNIVERSITY OF MUMBAI)
VIDYALANKAR MARG, WADALA (E)
MUMBAI 400037

VIDYALANKAR SCHOOL OF INFORMATION

TECHNOLOGY

Certificate

This is to certify that

Miss______________________ of M.com in banking

and finance has undertaken & completed the
project

work

titled_____________________________________________
during the academic year 2016-2017 under the
guidance of ______________________ submitted on
_________ to this college in fulfillment of the
curriculum of M.com in banking and insurance
University of Mumbai.
This is a bonafide project work & the
information presented is True & original to the
best of our knowledge and belief.

PROJECT
GUIDE

COURSE
CO-ORDINATOR

EXTERNAL
EXAMINER

DECLARATION

Vidyalankar School of Information Technology

(Affiliated to University of Mumbai)
Vidyalankar Marg, Wadala (E),
Mumbai 400 037

I VARSHA.J.SINGH, student of MCOM IN BANKING

AND FINANCE Semester III,

Vidyalankar School of

Information Technology, hereby declare that I have

completed the project on (RESEARCH METHODOLOGY OF
MAGGI )The information submitted is true and original to
the best of my knowledge.
Signature of the
Student

NAM
E OF THE STUDENT
VARSHA.J.SINGH
3

ACKNOWLEDGMENT

I hereby acknowledge all those who directly or indirectly helped me in drafting of this
project report. It would not have been possible for me to complete the task without their help
and guidance.

First of all I would like to thank the Principal Dr. Rohini Kelkarand the coordinator Prof.
sandip khandekar who gave me the opportunity to do this project work. They also conveyed the
important instructions from the university time to time. Secondly, I am very much obliged of Prof.
(Dr. Rohini Kelkarand) for giving guidance for completing the project.

Last but not the least; I am thankful to the University of Mumbai for offering the project in
the syllabus. I must mention my hearty gratitude towards my family, other faculties and friends
who supported me to go ahead with the project.

INDEX
Chapter
NO.

CONTENT

INTRODUCTION TO MAGGIE

II

BRAND STORY

III

VARIOUS PRODUCTS OF MAGGIE

IV

RESEARCH & DATA COLLECTION PLAN

CONSUMER DECISION MAKING PROCESS: MAGGIE

VI

SURVEY RESULTS

VII

HYPOTHESIS DONE FOR MAGGI NOODLES

VIII

SWOT ANALYSIS & STPD ANALYSIS

IX

FINDINGS

CONCLUSION & RECOMMENDATION

XI

QUESTIONNAIRE

XII

BIBILIOGRAPHY

EXECUTIVE SUMMARY
It gives me an immense pleasure to present this project on Research
&Methodolody Maggie for the fulfillment of project work in M.Com Part II
Banking & Finance Semester III. This project is prepared exactly as per the
guidelines prescribed by the University of Mumbai. It presents the subject matter
in a simple and convincing language.
Research has demonstrated conclusively that how nestle is growing their business
through Maggie brand & how many people are satisfied with this Maggie
product.The project aims at understanding the brand awarenessand
consumer behavior.

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 widespread 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 flavorings.
The Maggi Company merged with Nestl in 1947. Today, Maggi is a leading culinary brand
and part of the NESTL family of fine foods and beverages.
Under the Maggi brand, which is today known worldwide for quality and innovation, Nestle
offers a whole range of products, such as packaged soups, frozen meals, prepared sauces and
flavorings.

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 hisshort 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 outtype. 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, 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 color pencils, sketch pens, fun books, Maggi clubs which worked wonders for the brand.

WHY THE SPECIFIC BRAND POSITIONING?

Maggi was positioned as, 2 - minute noodles with a punch line that said, Fastto 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 its a hit with
her! Whats more, if kids also love the taste, the product is as good as sold! So the 2minute funda coupled with the yummy taste worked!

BRAND STORY
Launched in 5 flavors initially Masala, chicken, Capsicum, sweet & sour, and Lasagna
Maggi had to fight hard to be accepted by Indian consumers with their hard-to-change eating
habits. The packaged food market was very small at this time; Nestle had to promote noodles
as a concept, before it 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 Maggis rapid
acceptance.
Nestles Managers utilized promotions as measured to meet their sales target. Gradually,
sales promotion became a crutch for Maggi noodles sales. Later many of the Maggis
extensions also made considerable use of promotional schemes. The focus of all Maggis
extensionswas more on below the line activities rather than direct communication. In
9

additionto promotional activities, Maggi associated itself with main stream television
programme and advertised heavily on kids programme and channels. After itsadvertisements
with taglines like mummybhookhlagihai, bas do minute and fast to cook good to eat
Maggis popularity became highly attributed to its extremelyhigh appeal to children. As a
result, Maggis annual growth reportedly touched15% during its initial years.

PRODUCT VARIENTS
The product mix of Maggi is divided into various categories
defined below. Thecompany 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, ChillyChow and
ShahiPulao)
Maggi Cuppa mania (Masala yo, Chilli chow yo)

2. Sauces
Teekha masala
Tomotochatpat
Imlikhatamitha
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
10

 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

5. Maggi soup sanjivni

Amla
Badam
Spinach
DalTomato

6. Maggi bhuna masala

Bhuna masala for gravy dishes
Bhuna masala for vegetable dal7.Maggi magic cubes
Chicken masala

TASTE AND PREFERENCES OF CONSUMERS

Health is the flavor of the season. Food companies in India are growing aware of the increasingly
changing consumption trends and taste preferences among Indian people. No surprises, but this
is the reason more and more companies are coming up (or are actually re-marketing) with
products that are healthy.

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

11

 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 theconsumers
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 Sion area,
Mumbai. 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 asimple
random sampling method.

Sample Size
The sampling unit is 60 which are divided as follows:
No. of Respondents
Age Group
Monthly Household Income
Survey Location
Salary group
No. of
respondents

No income
--

Around 70
10 to 45
25000 to 65000
Pratiksha Nagar, Sion
25K-40K
35

41K-55K
15

55K & above

20

12

Age group
No. of respondents

14-25
30

25-35
20

35-45
20

DATA COLLECTION PLAN

Data Gathering:
This study involves data collection (primary research) from different households in the areas of
Pratiksha Nagar, Mumbai.
Literature Review
The research conducted as a part of our study would include Primary as well asSecondary
research. Primary research would include a survey that would beconducted in selected localities
of Mumbai and nearby areas where the responses of consumers would be recorded through a
designed questionnaire.Secondary researchwould include various aspects of Brand management
through Internet, Journals,company reports, expert views etc.

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. Nestles investment on Maggi has been squarely disproportionate to
13

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 whichyielded good results.Looking at the success of noodles, Nestle India
decided to extend the brand toa number of products such as sauces, soups, pickles and
macaroni in mid-1990s.
Maggi macaroni bombed and pickles didn't do well either. Maggi soups and sauces chugged
along and today have a decent presence in the market. Maggi noodles' acceptance among
Indian consumers didn't come easy. Nestle changed its formulation some time back which
was rejected by the consumer. So the company had to revert to the original make. Since then,
it has been a smooth sailing for the brand. Interestingly, it is only now, during Donati's
second stint, in the country that the brand has stabilized.
"Maggi noodles have seen a robust double-digit growth in sales during the last four years,"
said Donati. Last year, Nestle India launchedChinese Noodles as a snack food for the adults.

CONSUMER DECISION MAKING PROCESS: MAGGI

Consumer Decision Making Process, this basic psychological process plays an important role in
understanding how consumers actually make their buying decision. Marketers must understand
every facet of consumer behaviour in terms of who, what, when, where, how and why. Smart
companies like MAGGI try to fully understand the consumers buying decision process all
their experiences in learning, choosing and using of the product.
Maggi has always considered the following steps:
1. Problem Recognition
14

 This is the first stage of the Buying Decision where the buyer recognizes a problem or
need. The need can be triggered by internal or external stimuli which a marketer must
identify by gathering information from number of consumers. They can then develop
marketing strategies that trigger consumer interest.
Nestle after carefully analysing the market, identified the need for a quick snack in
India. They adopted the first mover strategy and launched Maggi in India in the year
1982 as an instant fast food.
Thereafter, Nestle recognized the consumers need for Maggi in different sizes and
introduced the 50gms, Double Pack and Super Saver Pack (s).
Later on in the years 2005 and then 2006, consumers need for a healthy instant
food was catered by launching Maggi Atta Noodles and Maggi Dal Noodles. These again
emerged as successful products and were widely accepted by masses.
Further to suffice the need for different taste, Maggi Rice Mania was brought in the
market in ShahiPulao, Chilli Chao and Lemon Masala flavors.

2. Information Search

15

 An aroused customer will be inclined to search for more information. At this level, a
person simply becomes more receptive to information about a product. There are four
major information sources which are of key interest to the marketer. These are the
personal sources (family, friends, and acquaintances), commercial sources (advertising,
websites, packaging and displays), public sources (mass media, consumer rating
organizations) and experiential sources (handling, examining and using the product).
MAGGI has over the years well established itself in the market and has now become a
household name. This has helped the brand gain popularity through word of mouth.
Maggis Mass Advertising Campaigns targeted consumers of all ages. Their
advertisements have highlighted that Maggi is a good alternative available with the
consumers when it comes to having a quick snack.

3. Evaluation of Alternative
Once all the consumers gather all the information he then evaluates the various option
available to him. When evaluating the potential alternatives, consumer uses two types of
information the first is the list of brands from which they plan to make their selection
and the second is the criteria from which they plan to make their decision.
Beliefs and Attitude - Evaluations often reflects beliefs and attitudes. And these are
acquired by experiences and learning.
MAGGI has always provided its consumers with something new from time to time
which has developed a good belief in the brand and thus has helped them to choose them
from their other alternatives. Their competitors like top ramen always find it difficult on
the evaluation front with magi because of strong association of consumers with it.
Awareness set is
Maggi
16

 Tom Ramen
WaiWai
Cup of Noodles
So out of the above awareness set the consumers decides to choose Maggi because after
analyzing the different parameters of the brand Maggi was chosen as the best alternative among
the rest leading to its maximum market share.
4. Purchase Decision
In the evaluation stage the consumer forms preferences among the brands in the choice
set, the consumer may also form an intention to buy the most preferred brand .In
executing a preferred intention the consumer takes up five sub decisions
Brand
Dealer
Quantity
Timing
Payment Method
In some cases consumer may decide not to formerly evaluate each and every brand; in
other cases intervening factors may affect the final decision.
Because of the strong consumer awareness about the brand MAGGI, consumer generally
prefer Maggi out of all the available brands , due to the mass distribution strategy adopted
by Maggi, any consumer can easily purchase it from their local grocery store without
wasting much of his/her time in searching for the product , Maggi comes in various sizes
like single , double and the supersaver packs so depending upon each individuals need
Maggi is catering each and every segment of the society not to mention that as the size
increase the saving on each pack increases.

5. Post Purchase
17

 After the purchase the consumer might experience dissonance that stems from noticing
certain disquieting features or hearing favorable things about other brands and will be
alert to information that supports his/her decision. Marketer must monitor
Post Purchase Satisfaction
Post Purchase Action
Post Purchase Product Uses

6. Post Purchase Satisfaction

Satisfaction is a function of the closeness between expectations and the products
perceived performance, if performance falls short of expectations the consumer is
disappointed and if it meets the expectation the consumer is satisfied and if it exceeds the
expectations then the consumer is delighted.

7. Post Purchase Actions

Satisfaction or dissatisfaction with the product will influence subsequent behavior if the
consumer is satisfied he will exhibit a higher probability of purchasing the product again.
The satisfied customer will also tends to say good things about the brand to others,
marketers says our best advertisement is the satisfied customer.

8. Post Purchase Use

Marketer should also monitor how buyers use and dispose of the product. A key driver of
sales frequency is product consumption rate the more quickly buyers consume a
product the sooner they may be back in the market to repurchase it.

18

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 samplingmethod.The survey will address the following
information area:
Information Areas:
The objective as spelt out can be elaborated into specific information areas to bestudied.
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 someother brand?
Do they consider noodle as a healthy product or they are aware of the companys strategy of
repositioning it to a healthy product by the launch of some of the new products?
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?

19

SURVEY RESULTS
Brand Associations
Sources of Brand equity like brand association of Maggi as a Brand was found highest with
the age group of 10-25 and the product category associated with it was the noodles category
(see exhibit 1).
Consumers in the age segment of 10-25 could easily relate Maggi to noodles. In the income
wise category the brand association was highest with the income group of 25k-40k were
more than 40 respondents associated Maggi with noodles(see exhibit 2).
The implications from the findings discussed above seem that Maggi has good brand
association in terms of noodles. Consumers presume Maggi as Noodles and the companys
philosophy of projecting the brand as noodles brand seem to be viable in this regard.

Brand Association (Age wise)

45
40
35
10-25yr

30

25-35yr

25

35 & above

20
15
10
5
0
noodles

fast food

snaks

none of these

20

Brand Association (Incomewise)

45
40
35

noodles

30

fast food

25

snacks

20

none of these

15
10
5
0
no income

20k-35k

35k-45k

45k-55k

BRAND RECALL
From the Exhibit 3 & 4 given below it seems a clear trend that Maggi has a good brand recall as
compared to its competitors like Top Ramen, Surya noodles etc.Consumers could easily
associate Maggi with noodles. In the Age wise category, therespondents of the age group of 2545 were highly cautious of Maggi brand andseemed to be consuming Maggi more as compared
to other age segments.

Brand Recall (Agewise)

50
45
40
35
30
25
20
15
10
5
0

10-25yr
25-35yr
35-45yr

21

Brand Recall (Incomewise)

50
45
40
35

maggie

30

yippee
Ching's Secrete

25

knorr Soupy Noodles

20
15
10
5
0
No Income

20k-35k

35k-45k

45k & above

22

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

Brand Awareness
noodles

20%

soup
masala

6%
9%

ketchup
65%

The trend indicated that Maggies brand extension strategy to increase its basket has not been
quite successful in other food segments .This might be because of the larger share of market
captured by the competitors hence Maggi has a high potential inmarkets like ketchup, soups etc.

23

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 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 maggie noodles products.

HYPOTHESIS
1. There is no significant relationship between the impact of media and purchasedecision.
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 interviewmethod by using a
structured questionnaire. For the purpose of the study the datahave been collected in different
places of the market especially in retail shops. Onehundred and twenty five nestle Maggie
noodles customers were randomly selected for the study as sample.

24

FINDINGS
1.
2.
3.
4.
5.
6.
7.
8.

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

Vast majority (85 percent) of the respondents have tasted all brands of nestleMaggi noodles.
72 percent of the respondents purchase nestle maggi noodles for its quality with low price.
60 percent of the respondents purchase nestlemaggi noodles whenever needed.
Television advertisements are a major factor in purchase decision compared to other Medias.
The foremost influencer in purchase decision of the respondents is children.
60 percent of the respondents were expecting new varieties of maggi noodles from Nestle.
38 percent of the respondents wanted a change in the quantity of present brands.The

respondents want small quantity packets.

9. 50 percent of the respondents feel that the advertisements are good.
10. 44 percent of the respondents feel that prices are cheap.
11. 49 percent of the respondents are moderately satisfied with the quality of Nestle Maggi
noodles.
12. Majority (68 percent) of the respondents consider that the packing is attractive.
13. Higher percentage (60) of the respondents is awareness on contents/ ingredients

25

SWOT ANALYSIS
The SWOT analysis of Maggi brand clearly indicates the strengths of Maggi as a Brand in
Indian market. The Brand was found to be a leader in its category of Noodles, with strong
customer loyalty.
Intensive distribution of Maggi as a Brand was seen in urban areas of the country. The major
threats of the brand as shown in the figure below indicates that Maggi has made several
attempts to revamp itself as a Healthy Product but till date its perseverance towards the tag
line is low by the consumers.
The brand is in the growth stage of product life cycle with a strong inclination towards the
maturity stage.
Strength

Weakness-

Market Leader In Their Segment

Strong Brand Loyal Consumer Based
Wide range of distribution channel
Product according to the need of Indian

consumer
Innovative product
Opportunity

Product are dependent on each other

Not so much presence in rural market

Threat

Increasing no. of working youths

Product has been acceptable in youth

category
Shift to rural market
Changing preference

Price war with competitors

Strong presence of regional competitors
Consumer dont perceive it as a
Healthy product

of

consumer

towards Chinese food and fast food

STPD ANALYSIS OF MAGGI BRAND

1. Segmentation:

26

Market Segmentation divides the heterogeneous market intohomogenous groups of customers

who share a similar set of needs/wants and could be satisfied by specific products. Maggi Brand
has segmented the market on the basis of lifestyle and habits of URBAN FAMILIES.
2. Target:
Market Targeting refers to evaluating and deciding from amongst thevarious alternatives, which
segment can be satisfied best by the company. TheMaggi Brand have mainly targeted the Kids,
Youth, Office Goers & Working Woman which falls into the category of convenience-Savvy
time misers whowould like to get something instant and be over with it quickly.
3. 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 maximize the potential benefit to the firm. Maggi has positioned
itself in the SNACKS 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 withpositioning statements such as 2 minutes noodles and Easy to cook, good to
eat.
4. Differentiations:
Points-of-difference (PODs) are attributes or benefits consumersstrongly associate with a brand,
positively evaluate and believe they could not findto the same extent with a competitive brand.
The Maggi Brand has alsodifferentiated its brand image from its competitors in terms of taste,
flavours and packaging. Maggi have launched wide varieties of products in different
flavourswhich can attract larger set of customers. Maggi products are also available indifferent
sizes catering to different customer needs

27

CONCLUSION
The food processing business in India is at a nascent stage. Currently, only about 10% of the
output is processed and consumed in packaged form thus highlighting huge potential for
expansion and growth.
Traditionally, Indians believe in consuming fresh stuff rather than packaged or frozen, but the
trend is changing and the new fast food generation is slowly changing. Riding on the success
of noodles, Nestle India, tried to make extensions of the Maggi brand to a number of
products like, sauces, ketchups, pickles, soups, tastemakers and macaroni in the mid-1990s.
Unfortunately, the macaroni and pickles didnt pick up as expected.
The soups and sauces did somewhat fine, gathering considerable sales volumes and have a
satisfactory presence even today. Maggi Noodles itself faced a bit of difficulty with respect
to taste, and nearly lost its position in the minds of Indian consumers in the late 1990s.
When Nestle changed the formulation of its tastemaker, the ominous packet that came along
with Maggi Noodles, a major chunk of consumers were put-off and sales started dropping.
Also, Maggis competitor TopRamen took advantage of the situation and started a parallel
aggressive campaign to eat into Maggis market share. But the company quickly realized this
and went back into making the original formula coupled with agree 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 brandhas grown to an estimated value of Rs 160-170 crore and contributes at least 8
9% 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, thesize 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.

28

RECOMMENDATION

After the conducted study following recommendations could be sited for MaggiBrand.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 Magis market share.

FUTURE PLANS
Nestl Indias objective is to manufacture and market the companysproducts 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.
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. Recommendations given after the study are entirely dependent on the survey and the
secondary analysis done in the report.

QUESIONNAIRE
Q.1] Are you aware of Maggi?
a) Yes
b) No
29

Q.2] If yes, which product of Maggi do you prefer most?

a)
b)
c)
d)

Noodles
Sauces
Soups
Pasta

Q.3] Whydo you prefer it?

a) Flavours
b) Price
c) Taste
d) Brand Image
Q.4] Which Advertisement of Maggi product do you like most?
a) Noodles: Me AurMeri Maggi
b) Sauces: Its Different
c) Soups: Taste Bhi, Health Bhi!.
d) Pasta: Nutri

Q.5] Do you think, prices of Maggi products is affordable? Why?

_______________________________________________________________
_______________________________________________________________

Q.6] Do you think attractive advertisement helped Maggi to increase their sales?
_______________________________________________________________
_______________________________________________________________

Q.7] According to you which age group prefers Maggi most?

30

a) 4-12

b) 13-26

c) 27-40

d) 40 &above

Q.8] Do you think Maggi is a healthy product?

a) Yes

b) No

Q.9] According to you who is the biggest competitor for Maggi products?
a) yippee

b) top ramen c) knorr soupy noodles d) chings secret

Q.10] Any Suggestions or other improvements you would like to suggest?

_______________________________________________________________
_______________________________________________________________

31

BIBILIOGRAPHY
www.nestle.com
http://www.maggi.in/
www.facebook.com
https://www.quora.com/How-should-Nestle-position-Maggi%E2%80%99simage-as-a-trustworthy-brand-in-the-short-term-as-well-as-long-term

32