TOPIC

RESEARCH METHODOLOGY
ON
A STUDY ON NESTLE PRODUCT MAGGI
SUBMITTED BY
ARJINDERBIR SINGH MANDEEP KAUR
ROLL NO:1631003 ROLL NO:1631022
HARJAGJIT SINGH MANJINDER SINGH
ROLL NO:1631009 ROLL NO:1631024

SUBMITTED TO
PROF.HANSDEEP KAUR
CHIEF KHALSA DIWAN INSTITUTE OF MANAGEMENT AND
TECHNOLOGY
(AMRITSAR)
AFFIALIATED TO PUNJAB TECHNICAL UNIVERSITY
(JALANDHAR)
 ACKNOWLEDGEMENT

I take this opportunity to thank the CKDIMT for giving me a chance to do

this Project.
I express my sincere gratitude to PROF.Hansdeep kaur, and our librarian
and other teachers for their constant support and helping for completing the project.
I am also grateful to my friends for giving support in my project. Lastly, I
would like to thank each and every person who helped me in completing the project
especially MY PARENTS.
 DECLARATION

We are students of CKD Institute of management and technology,Amritsar

hereby declare that I have completed project on RESEARCH METHODOLY ON

MAGGI-( NESTLE ) in the academic Year 2016-2017. This information

submitted is true and original to best of my Knowledge.

Date: Signature of Student

 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
EXECUTIVE SUMMARY

The report entitled A research done on of Maggi Brand deals with the
study of Maggi brand that was launched in India in the year 1983, by Nestle India
Limited, which became synonymous with noodles. This research paper tries to find a
solution to a real life problem of Maggi to launch its products as a Healthy Product.
The introduction provides the company background, operational & other important
information provided by the company which would assist in taking the decision for
the right brand extension strategy for Maggi.
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 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 flavourings.
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, Nestl faced difficulties with their
sales after the initial phase. The reason being, the positioning of the product with the
wrong target group. Nestle had positioned Maggi as a convenience food product
aimed at the target group of working women who hardly found any time for
cooking. Unfortunately this could not hold the product for very long. In the course of
many market researches and surveys, the firm found that children were the biggest
consumers of Maggi noodles. Quickly they repositioned it towards the kids segment
with various tools of sales promotion like colour pencils, sketch pens, fun books,
Maggi clubs which worked wonders for the brand.
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 its a hit with her! Whats more, if kids also love the
taste, the product is as good as sold! So the 2-minute funda coupled with the
yummy taste worked!

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 Maggis 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 Maggis extensions also
made considerable use of promotional schemes. The focus of all Maggis 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 Maggis popularity became highly attributed to its extremely
high appeal to children. As a result, Maggis annual growth reportedly touched
15% during its initial years.
MAGGIS BRAND EXTENSION
In 1998, Nestle launched Maggis 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
Maggis brand name, and was never very serious about the segment.

In 1993, Sweet Maggi, the first variant of Maggi noddles 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. Maggis
euphoria was, however, short lived, as sales stagnated in 1995 at the previous years
level. With soup business being threatened by a new entrant Knorr soups launched
in 1995, offering 10 flavours against Maggis 4 the company started rethinking its
strategies towards the soup market. In order to stretch Maggis 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 Nestl
seemed to be particularly bad at dealing with traditional Indian product categories.
Maggi noodles performed badly in 1996. Despite slow sales in the previous two
years, Nestl had set a sales target of 25,000 tonnes for the year. However, Maggi
couldnt cross even 14,000 tonnes. Adding to the company woes was the failure of
Maggi Tonights 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, Nestl 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, Nestl 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 Macaronis launch was backed by a multi-
media advertisement campaign including radio, television, outdoors and print media
with the tagline, Tum Roz Baby. The products 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, Nestl 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, Nestl had to
withdraw Maggi Macaroni completely from the market.
Nestl had not even recovered from Macaronis 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, Its different. However, during mid-1997, HLL began
promoting its Kissan range of sauces aggressively and launched various innovative
variants in the category. Nestl 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 Nestl 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
tastemakers 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 Nestl 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,
Nestl began working out a strategy to regain Maggis 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 Nestl 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 Nestls move with US soft drinks major Coca-Colas
New Coke fiasco. However, the company disagreed, Its a hard-5 nosed strategy
that mixes nostalgia with the consumers voiced preference for the product it has
been bred and rough up on. The reintroduction is Nestls acknowledgement of the
loyalty of the Indian mother and the child to the original product. By May 1999,
Nestls 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 year. In July 1999, Maggi
the brand, was promoted as the biggest brand in Nestls portfolio of brands in India,
overtaking brands such as Nestum and Cerelac. Nestl 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,
Nestl 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, Nestl 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
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

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

Maggi's Market Share in Ketchup Category

45%

55% Maggi

Others
 Maggi's Market Share in Noodles Category

20%

Maggi
80%
Others

RESEARCH METHODOLOGY
OBJECTIVES

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

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 Amritsar. 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.

SAMPLE SIZE
The sampling unit is 150 which are divided as follows:

Number of
150
respondents
Age-group 10 - 45
Monthly Household
25000 - 75000 INR
Income
Survey Locations Amritsar,Ajnala,Batala,Tarn Taran

25K - 40K - 60K -

Salary Group No income 40K 60K 75K
Number of Respondents 30 50 70

Age Group 10 - 25 25 - 35 35 45
Number of Respondents 50 50 50

DATA COLLECTION PLAN

Data Gathering:
This study involves data collection (primary research) from different households in
four different areas Amritsar,Batala,Tarn Taran and Ajanla.

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 Amritsar and nearby areas where the responses of
consumers would be recorded 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. "Nestls 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.
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
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?

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(Agewise)
40

35

30

25 10yr - 25yr
20 25yr - 35yr
15 35yr - 45yr

10

0
Noodles Fast Food Snacks None of These

Exhibit 1

Brand Association(Incomewise)
45
40
35
30 Noodles
25 Fast Food
20 Snaks
15 None of These
10
5
0
No Income 25K - 40K 40K - 60K 60K - 75K

Exhibit 2
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, the
respondents of the age group of 25-45 were highly cautious of Maggi brand and
seemed to be consuming Maggi more as compared to other age segments.

Brand Recall(Agewise)
45
40
35
30
25 10yr - 25yr
20 25yr - 35yr
15
35yr - 45yr
10
5
0
Maggi Top Ramen Surya Anil Noodles
Noodles
 Exhibit 3

Brand Recall(Incomwise)
45
40
35
30 Maggi
25 Top Ramen
20 Surya Noodles
15 Anil Noodles
10
5
0
BRAND RECALL
No Income 25K - 40K (GENDER
40K - 60K WISE)
60K - 75K

In the gender wise category the companys strategy of positioning of Maggi brand
for working women seems to be adaptive and gaining shape as women respondents
had a brand recall more than male.

Brand Recall(Genderwise)
25

20

15 Maggi
Top Ramen
10
Surya Noodles
Anil Noodles
5

0
Male Female Male Female Male Female Male Female
BRAND AWARENESS
From the responses of the respondents in the conducted survey it was evident than
Maggis 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

Soup Masala Ketchup

9% 6% 20%

Noodles
65%
The trend indicated that Maggis 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 in
markets like ketchup, soups etc.

Brand Awareness(Agewise)
40
35
30
25 10yr - 25yr
20 25yr - 35yr
15 35yr - 45yr
10
5
REPOSITIONING
0
Ketchup Noodles
MAGGI
Soup
AS
Masala
A HEALTHY
PRODUCT
The companys strategy to reposition Maggi as a Healthy product was not found
conducive as per the survey results. The survey showed that consumers did not
perceived Maggi as a healthy product with 53% of them consumed Maggis
traditional products as compared to the rest who consumed other variants of Maggis
brand that were positioned as Healthy products.

Repositioning Awareness
Maggi rice noodles Others
mania 3%
7%
Maggi dal atta
noodles
14%
Maggi masala
(Regular)
Maggi vegetable 53%
atta noodles
23%
PERCEPTION OF MAGGI PRODUCT
From the pie chart given below it can be clearly seen that Maggi is still perceived as
a non healthy products by the consumers and in spite of the efforts to position Maggi
as a healthy product by the company the brand is still perceived as a ready to eat
food brand that has a high market share in the noodle category in India.

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 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 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.

FINDINGS
1. 32 percent of the respondents prefer maggi 2-minute noodles.

2. Vast majority (85 percent) of the respondents have tasted all brands of nestle
Maggi noodles.

3.72 percent of the respondents purchase nestle maggi noodles for its quality with
low price.

4.60 percent of the respondents purchase nestle maggi noodles whenever needed.

5. Television advertisements are a major factor in purchase decision compared to

other Medias.

6. The foremost influencer in purchase decision of the respondents is children.

7. 60 percent of the respondents were expecting new varieties of maggi noodles from
Nestle.

8. 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

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 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 Product are dependent on each
Strong brand loyal consumer base other
Wide range of distribution Not so much presence in rural
channel market
Product according to the need of
Indian consumer
Innovative Product

SWOT
ANALYSIS

OPPORTUNITY THREAT
Increasing number of working youth Price war with competitors.
Product has been acceptable in Strong presence of regional
youth category competitors
Shift to rural market Consumers dont perceive it
Changing preference of consumer as a Healthy Product
towards Chinese food and fast food.
Can foray into other food markets
with its strong Brand name

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 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 companys offerings and
image to occupy a distinctive place in the minds of the target market. The goal of
positioning is to locate the brand in the minds of consumers to maximise the
potential benefit to the firm. Maggi has positioned itself in the SNACKS category
and not in the meal category since Indians do not consider noodles as a proper food
item. Therefore Maggi have developed its brand image of instant food products with
positioning statements such as 2 minutes noodles and Easy to cook, good to eat.

Differentiations: Points-of-difference (PODs) are attributes or benefits consumers

strongly associate with a brand, positively evaluate and believe they could not find
to the same extent with a competitive brand. The Maggi Brand 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)
Maggis 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 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 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 89%
to Nestle Indias top line. All the same, some FMCG analysts feel that the brand has
not done much to expand the noodles category. Even after 25 years of its launch, the
size of the instant noodles market is yet quite small at Rs 300 crore. But yes, the
parent company, Nestle India Limited has certainly encouraged the brand to enter
into other culinary products.

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 key to success. Targeting these segments will not only enhance the
companys profit margins but also it will leverage the brand image of
Maggi.
 - The company should advertise its products by depicting attributes
related to Health like Nutrition values, % of Vitamins, Proteins etc.This
would help in customers perceiving the product as Healthy.
- Foray into other food products like chips, chocolates etc under its sole
brand name would not only help in Brand extension but will also
enhance Maggis market share.

FUTURE PLANS
- Nestl Indias objective is to manufacture and market the companys
products in such a way so as to create value that can be sustained over
the long term for consumers, shareholders, employees and business
partners.
- Maggis aims to create value for consumers that can be sustained over
the long term by offering a wide variety of high quality, safe food
products at affordable prices.
- 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.

QUESTIONNAIRE

Q-1 Are you a customer of maggi ?

Yes
No
Analysis: This survey suggested that out of 20 customers all are consumers of
Maggi products. Maggi is quite famous with the different types of customers in the
market. Our survey took sample of customer in general.

Q-2 what comes first in your mind when you hear the word Maggi?
Noodles
Fast food
Snacks
None of these

Analysis: The survey suggested that 14 out of 20 consumers associated magi with
noodles. 3 for snacks and masala each. People are familiar with magi as a brand for
noodles in majority .

Q-3 what is the brand that comes to your mind when we say the word noodles?
Maggi
Top Ramen
Surya Noodles
Anil Noodles

Analysis: The survey suggested that Maggi is the most popular brand with the
customers of noodles . It suggests that 18 out of 20 consumers associates noodles
with magi.

Q-4 Rank the following Maggi products w.r.t. frequency of purchase with 1 being
the highest rank RANK

Noodles _________
Ketchup _________
Soup _________
Pickles _________
Cubes _________
Analysis: Most of the consumers have ranked noodles as 1. People purchase Maggi
noodles in majority . The frequency of purchase of magi noodles is very high.

Q-5 With what products would you associate the brand Maggi?
Ketchup
Noodles
Soup
Masala

Analysis: The survey suggested that 12 out of 20 people associated the brand magi
with noodles .6 customers associated with masala. 2 consumers associate the brand
with soup and 1 with ketchup .

Q-6 On a scale of 1 to 5 rate Maggi on the following parameters

Taste ____________
Variety/Flavours ____________
Hygiene/Purity ____________
Availability ____________
Packaging (SKUs) ____________

Analysis: The product of Maggi have been rated well above parameters by most of
the customers.

Q-7 Rank the categories which Maggi should look in future in order of your
importance :
Chocolates _____________
Salted Potato Chips _____________
Fruit Juices _____________
Processed foods(Ready to use pastes, masala) ____________
Others ( Please mention) _____________
Analysis: According to the survey ,magi should look for salted potato chips in
future as it is highly demanded by the people in market.

Q-8 how do you rate Maggi brand in terms of following parameters:

Expertise (Competent, Innovative, Market leader)

Trustworthiness (Dependable and keep customers interest in mind)
Liability ( Fun ,interesting)
None of these

Analysis: According to survey , Maggi brand is using expertise strategy to look

forward in future .

Q-9 How do you perceive Maggi products?

Good for health.
Ready to eat.
Junk food
Tasty / Fun eating

Analysis: The survey suggest that most of the consumers perceive magi product
as being good for health .

Q-10 Which Maggi products in noodles category do you regularly buy?

(Repositioning awareness)
Maggi masala
Maggi vegetable attar noodles
Maggi dal Atta noodles
Maggi rice noodles mania
Others
Analysis: The survey suggest that most of the consumers regularly buy magi
vegetables Atta noodles while few of them preferred magi masala noodles.

Q-11 Do you perceive Maggi noodles as a healthy product?

Yes
No

Analysis: According to survey Maggie is perceived as a healthy product for most of

the consumers.

Q-12 If No then your suggestions for improvement as a healthy product?

____________________________________________

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _

Analysis: The survey suggest that 20 out of 20 consumers perceive magi noodles
as a healthy product and need no improvements as a healthy product.

BIBLOGRAPHY

www.google.com
www.wikipedia.com