COMPANY HISTORY

Maggi is an international brand of instant soups, stocks, bouillon cubes, ketchups,

sauces, seasonings and instant noodles. Owned by Nestl since 1947, the original company
was founded in Switzerland in 1872 by Julius Maggi. The brand is known for Maggi noodles,
Maggi cube, and Maggi-Wrze (seasoning sauce).
The original company came into existence in 1872 in Switzerland when Julius
Maggi took over his father's mill. He quickly became a pioneer of industrial food production,
aiming to improve the nutritional intake of worker families. Maggi was the first to bring
protein-rich legume meal to the market, and followed up with a 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 based today.
In 1947, following several changes in ownership and corporate structure, Maggi's
holding company merged with the Nestl company to form Nestl-Alimentana S.A., currently
known in its francophone Homebase as Nestl S.A. Today, Maggi is known throughout the
world for its dry soup, seasoning sauce and instant noodle dishes. In New Zealand, Maggi
Onion Soup mix is often combined with reduced cream to create an onion dip for potato
chips that has come to be generally accepted as a Kiwi favourite.[1]

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MAJOR PRODUCTS

Noodles

In India and Malaysia, Maggi instant noodles are very popular; Nestle has 39% of the
market in Malaysia, where "Maggi" is synonymous with instant noodlesand a 60% share
in India where it was the first instant noodle brand.In Malaysia, fried noodles made from
maggi noodles are called Maggi goreng.
Maggi noodles have been advertised as 2 minute noodles since 1982. The firm
recently introduced new varieties of its noodles, for example 'No MSG', 'Less Salt', and
'No Trans fat' to cater to the health conscious. In mid-2008, New Zealand supermarkets
introduced replacement formulations for the beef, oriental, and curry flavours. A new feature
is an extra sachet containing dehydrated vegetables. Maggi claims the new range contains
88% less total fat and 86% less saturated fat than the average of top-three (unnamed) 2minute-noodle competitors. The new Maggi range also has considerably lower fat than its
own previous formulation. However, the salt content has been increased by 31 percent.

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Seasoning Sauce

"Maggi" is still synonymous with the brand's Maggi Wrze (Maggi seasoning sauce),
a dark, soy sauce-type hydrolysed vegetable protein-based condiment sauce. In Spain and
Mexico, it is sold under the name Jugo Maggi.It was introduced in 1886 as a cheap
substitute for meat extract. It has since become a well-known part of everyday culinary
culture in Switzerland, Austria and especially in Germany. It is also widely used in Poland
(known there as "Przyprawa W Plynie") and the Netherlands.
Maggi Wrze has popularity in Serbia and Macedonia, despite not being officially
available in those countries. Maggi is very popular in East Asia, Southeast Asia, andSouth
Asia, where Maggi seasoning is used in many soups, stir-fries, marinades and as a
dipping/topping sauce. Maggi seasoning is commonly used in Asia as a "soy sauce",
imparting a umami [savory] flavor.

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Cube

The bouillon cube or "Maggi cube", which was another meat substitute product, was
introduced in 1908. Because chicken and beef broths are so common in the cuisines of
many different countries, the company's products have a large worldwide market.
In West Africa and parts of the Middle East, Maggi cubes are used as part of the local
cuisine. In Liberia, they are used as an application to the cut umbilical stump of newbornbabies. In Haiti,and throughout Latin America, Maggi products, especially bouillon
cubes, are widely sold with some repackaging to reflect local terminology.

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Strengths in the SWOT analysis

of Maggi
1.

With the presence in different product categories under the umbrella brand of Maggi
with large SKUs (Stock keeping unit).Maggi have edge over its competitors.

2.

1st Mover Advantage: Maggi has established itself a pioneer in changing the eating
habits & acceptance of Noodles as easy meal. Although now the market is full of local &
national players in different product categories but still Maggi Holds market leader place.

3.

High Customer Pull: With its distinguished promotion strategies & branding hence
creating strong customer connects had helped Maggi to have High TOMA score.

4.

Distribution Channel: Robust & well established distribution channel of the parent
company (NESTLE) is helping in making the product available in the Market.

5.

Popularization of Maggi in Restaurants & Road side stall, Canteens is contributing to

its success.

6.

With rich history and financially stable parent company is on the growing path.

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Weaknesses in the SWOT

analysis of Maggi

Risk of Over Dependence

Company is playing hard on the risk of over dependability on Maggi Noodles, as
57% (2014) of the revenue of the brand Maggi comes from Noodles knowing the fact
that their market share has been decreased significantly (in 2012 84% to 63% in
2014).Although with more & more competitors the market size is still on the
expansion mode.

Ill effects of Maggi

Awareness about ill effects of Maggi is gaining momentum with more & more
educated class becoming more health conscious.

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Opportunities in the SWOT

analysis of Maggi
Brand Extension
Maggi can expand its product categories by venturing out in corn flakes Chips &
Pickles (Although it failed in 2003 but now with presence of local & national players in
this product category company can reap the benefits).

Although its been used majorly by the educated class in order to save their time
what if the long potential rural markets can also be penetrated with the innovative
strategies pertaining to consumers engagement with the brand.

Also Company can target the Restaurants chains by offering some customized or
special offerings to make it more short of part of the daily life of the consumers.

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Threats in the SWOT analysis of

Maggi

Competition
Since Maggi have a strong competitors , it is kind of tough competition that they will
get from the local & national player in the area that are concern for the co.
Negative word of mouth
Propagation of ill effects of Maggi noodles through online & Social Media possess
threats to the existence of Maggi.
Commoditized name
For majority of population the name Maggi is being commoditized for Noodles just
like Coalgate, Surf etc.

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SUGGESTIONS
Add more flavour
By adding more flavour customer will be enjoy eating the new maggi recipe and they will
order repeatedly.

Add meat in maggi packet

Customer does not have to buy meat anymore if the instant noodles are included meat in
their product. The meat will bring something new to the product.

Use organic product instead of artificial product.

Create new product base on organic, less chemicals and more to health and suitable for diet
person because people nowadays are seeking for healthy food.

Add chopstick in maggi cup

Some people prefer using chopstick instead of fork and spoon because they live in a culture
whereby using chopstick are normal things for them.

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Conclusion
The food processing business is only about 10% of the output is processed and
consumed in packaged form thus highlighting huge potential for expansion and growth.
Traditionally, peoples 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 in India, tried to make extensions of the Maggi brand to a number
of products like, sauces, ketchups, pickles, soups, tastemakers and macaroni in the mid1990s. 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 Top Ramen 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! The year 2008 saw India leading in worldwide
Maggi sales. The brand has grown to an estimated value of Rs 160-170 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, the size of the
instant noodles market is yet quite small at Rs 300. But yes, the parent company, Nestle
India Limited has certainly encouraged the brand to enter into other culinary products

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