Yachika Verma

1. Made By :
Yachika Verma
2013
MAGGI

2. Introduction:-
Maggi noodles is a brand of instant
noodles manufactured by Nestlé. Maggi
has been the highest sold noodles in
India. It is a product of Nestle Brand. It
took several years and lots of money for
nestle to establish its noodles brand in
India Maggi was invented in Europe by
a person named Jullius Maggi. In India it
was launched in 1980s by Nestle group
of companies.
Maggie had merged with Nestle family
in 1947.
Maggie has faced lot of hurdles in its
journey in India. The basic problem the
brand faced was the Indian psyche. i.e.
Indians used to be conservative about
the food habits so noodles faced a lot of problem in promoting sales.
Initially nestle tried to to position the Noodles in the platform of convenience
targeting the working women. However, the sales of Maggi was not picking up
despite of heavy Media Advertising. To overcome this NIL conducted a research,
which revealed that it was children who liked the taste of Maggi noodles and who
were the largest consumers of the product. So they came up with Maggi- 2 minute
noodles with price of Rs. 2.10 with a close of 100% margin. NIL shifted its focus
from working women and targeted children and their mothers through its marketing.
NIL's promotions positioned the noodles as a 'convenience product', for mothers and
as a 'fun' product for children. The noodles' tagline, 'Fast to Cook Good to Eat' was
also in keeping with this positioning. They promoted the product by
1.Distributing free samples.
2.Giving gifts on return of empty packets.
3.Dry sampling-distributing Maggi packets
4. wet sampling - distributing cooked Maggi.
5.Availability in different packages 50gm,100gm,200gm,etc.. and
6.Effective Tagline Communication.
Through its ads, NIL positioned Maggi as a 'fun' food for kids which mothers could
prepare easily. Taglines like 'Mummy, bhookh lagi hai' (Mom, I'm hungry), 'Bas 2-

3. Minute,' and 'Fast to Cook Good to Eat' effectively communicated the product's
benefits to target consumers. These ads had become so popular that the tagline
'Bas 2-Minute' immediately reminded Indian consumers of Maggi noodles even
several years after the ads were taken off the TV. Maggi's first product extension
was Maggi instant soups launched in 1988. With the launch of Maggi soups, NIL had
become a pioneer in the organized packaged soup market in India..since then Maggi
has been successful in India and launched ketch ups sauces and soups in India,
which was very successful in grasping market. Though NIL tried to extend to other
ready to eat products like pickles, cooking aids and paste, It was unsuccessful so
dumped those products. Maggi is competing with Heinz Sauces and Ketchup, Knoor
Soups, Kissin Sauces and Ketchup, Top Ramen, Sunfeast Pasta WaiWai and 2 PM
in corresponding categories of products and variants.
Market position of Maggie:
1.No.1 in instant noodles and sauces.
2.No.2 in healthy soups.
3.Market share of noodles- 80%
4.current sales-5.5crores boxes in India.
History
Maggi (German pronunciation: [ˈmaɡgi]) is a Nestlé brand of soups, stocks, bouillon
cubes, ketchups, sauces, seasonings and instant noodles. 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 parts of China, Vietnam, Thailand, Taiwan, Philippines, Singapore, India,
Pakistan, Europe, Mexico, Malaysia, Brunei, German-speaking countries,
the Netherlands, the Czech Republic, Slovenia, Slovakia, Poland andFrance,
"Maggi" is still synonymous with the brand's "Maggi-Würze" (Maggi seasoning
sauce) (in Spain it is sold under name Jugo), a dark, hydrolyzed vegetable protein-
based sauce which is very similar to East Asian soy sauce, except it does not
actually contain soy.[1] Prior to the early 2000s, Maggi seasoning was an actual soy
sauce, using soy and wheat as some of their ingredients, however a change in

4. ingredients resulted in the omission of soy. 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 well
known in Poland and the Netherlands. Maggi Würze has huge popularity
in Serbia and Macedonia despite not being officially available in those countries.
Maggi is also immensely popular in East Asia, Southeast Asia, and South 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".
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 1947, following several changes in ownership and corporate structure, Maggi's
holding company merged with the Nestlé company to form Nestlé-Alimentana S.A.,
currently known in its francophone home base as Nestlé S.A..
Today, Maggi is known throughout the world for its dry soups, 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 favorite. [
In India, Maggi instant noodles are a favorite for an anytime meal. From dorm rooms
of colleges to late-night cooking in home kitchens, its an all-time favorite.
In West Africa and parts of the Middle East, Maggi cubes are used as part of the
local cuisine. Throughout Latin America, Maggi products, especially bouillon cubes,
are widely sold with some repackaging to reflect local terminology. In the German,
Dutch and Danish languages, lovage has come to be known as "Maggi herb"
(Ger. Maggi kraut, Du. maggikruid or Da. maggiurt), because it tastes similar to
Maggi sauce, although lovage is not present in the sauce.
In Malaysia, Indonesia, Thailand and Vietnam, Maggi seasoning sauce is a popular
condiment, and the bottles are familiar sights on restaurant tables.
MAGGI BRAND IN INDIA
Maggi Comes to India – teething troubles Maggi noodles was launched in India in
theearly1980s. 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

5. Samosa, biscuits or maybe peanuts, that were usually ‗the bought out‘ type. The
second competition came from the home made snacks like Pakore or sandwiches.
So there were no specific buy and make snack! Moreover both competitors had
certain drawbacks in comparison. Snacks like Samosa are usually bought out, and
outside food is generally considered unhygienic and unhealthy. The other
competitor, ‗homemade ‗snacks overcame both these problems but had the
disadvantage of extended preparation time at home.
Maggi was positioned as the only hygienic homemade snack! Despite this, Nestlé
faced difficulties with their sales after the initial phase. The reason being, the
positioning of the product with the wrong target group. Nestlé 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 ‗Fast to cook! Good to eat!‘ And this gave the implied understanding to
the consumer that it was a ‗between meals ‗snack. The company could have easily
positioned the product as a meal, either lunch or dinner. But, it chose not to do so,
because the Indian consumer mindset did not accept anything other than rice or Roti
as a meal. Hence trying to substitute it with noodles would have been futile. The firm
did not position it as a ‗ready-to-eat‘ meal either, as the housewife prefers to ‗make‘
a meal for her kids rather than buy it for them. And if she can make it in two minutes
with very little effort, then obviously it‘s a hit with her! What‘s more, if kids also love
the taste, the product is as good as sold! So the ‗2-minute‘ funda coupled with the
‗yummytaste worked
Maggi’s Brand Extension and Repositioning
Subject:
Product And Brand Management 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

6. effort, then obviously it‘s a hit with her! What‘s more, if kids also love the taste, the
product is as good as sold! So the ‗2-minute‘ funda coupled with the ‗yummy taste
worked!
BRAND STORY
Launched in 5 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 analysts‘ the focus on promotion turned out to be the
single largest factor responsible for Maggi‘s rapid acceptance. Nestlé‘s Managers
utilized promotions as measured to meet their sales target. Gradually, sales
promotion became a crutch for Maggi noodles sales. Later many of the Maggi‘s
extensions also made considerable use of promotional schemes. The focus of all
Maggi‘s extensions was more on below the line activities rather than direct
communication. In addition to promotional activities, Maggi associated itself with
main stream television programmed and advertised heavily on kids program e and
channels. After its advertisements with taglines like ―mummy bhookh lagi hai,bas do
minute‖ and fast to cook good to eat Maggi‘s popularity became highly attributed
to its‖ extremely high appeal to children‖. As a result, Maggi‘s annual growth
reportedly touched15% during its initial years.
Maggi’s Brand Extension:
In 1998, Nestle launched Maggi‘s first brand extension, Maggi soup. At this stage,
There was no organized packaged soup market in India. Nestle planned to create a
market for packaged soup as it felt the category had a lot of potential. However,
according to analyst, the company had introduced soups only to cash in on the
Maggi‘s brand name, and was never very serious about the segment. In 1993,

7. ―Sweet Maggi‖, the first variant of Maggi noodles was launched. The company
supported the launch with a huge advertisement outlay that amounted to 75% of the
total yearly expenditure on the Maggi brand. However, the product failed to generate
the desired sales volume and Nestle was forced to withdraw it. At the end of the
year, Maggi noodles was 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 tones in 1994 and further to 13000 tones in 1995.Maggi‘s
euphoria was, however, short lived, as sales stagnated in 1995 at the previous years
level. With soup business being threatened by a new entrant ―Knoor soups‖
launched in1995, offering 10 flavors against Maggi‘s 4 the company started
rethinking its strategies towards the soup market. In order to stretch Maggi‘s brand
to include Indian ethnic foods the company tied up with a Pune based cordials 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
Dec1995. The company reportedly saw a lot of untapped potential in the market for
ready to use south Indian market. In 1996, products from these two ventures
received lukewarm response from the market; sales were rather poor in the regions
in which they were launched. Analysts attributed the failure of these Maggi
extensions to the fact that Nestlé seemed to be particularly bad at dealing with
traditional Indian product categories. Maggi noodles performed badly in
1996.Despite slow sales in the previous two years, Nestlé had set a sales target of
25,000 tones for the year. However, Maggi couldn‘t cross even 14,000 tones.
Adding to the company woes was the failure of Maggi Tonite‘s Special, a range of
cooking sauces aimed at providing ‗restaurant-like-taste‘ to food cooked at home.
The range included offerings such as Butter Chicken gravy and tomato sauce for
pizzas. Understanding these failures, and buoyed by the fact that the Maggi brand
finally broke even in 1997, Nestlé continued to explore new options for leveraging on
the brand equity of Magginoodles. The company realized that the kids who had
grown up on Maggi noodles had become teenagers by the late 1990s. As they
associated the product with their childhood, they seemed to be moving away from it.
To lure back these customers and to explore new product avenues, Nestlé launched
‗Maggi Macaroni‘ in July 1997. According to analysts, Maggi Macaroni was launched

8. partly to deal with the growing popularity of competing noodles brand Top Ramen.
Maggi Macaroni was made available in three flavors, Tomato, Chicken, and Masala.
The company expected to repeat the success of Maggi noodles with Maggi
Macaroni. As with most of its product launches, Maggi Macaroni‘s launch was
backed by a multi-media advertisement campaign including radio, television,
outdoors and print media with the tagline, ‗Tum Roz Baby. The product‘s pricing,
however, proved to be a major hurdle. A 75-gm Maggi Macaroni pack was priced at
Rs 11, while a 100-gm noodles pack was available at Rs 9. According to analysts,
Nestlé failed to justify this price-value anomaly to customers, who failed to see any
noted value addition in Maggi Macaroni (packaging and flavor 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
Product And Brand Management did not taste very good. The interest generated by
the novelty of the product soon died out and sales began tapering off. Eventually,
Nestlé had to withdraw Maggi Macaroni completely from the market. Nestlé had not
even recovered from Macaroni‘s dismal performance, when it learnt to its horror that
Knorr had dethroned Maggi as the leader in the soup segment (end of 1997). The
only saving grace for Maggi seemed to its ketchups and sauces, which were turning
out to the ‗rare‘ successful extensions of Maggi. These products were supported by
a popular advertisement campaign for the Maggi Hot & Sweet sauce brand.
These humorous advertisements, featuring actors Pankaj Kapoor and Javed Jafri,
used the tagline, ‗It‘s different.‘ However, during mid-1997, HLL began promoting its
Kissan range of sauces aggressively and launched various innovative variants in the
category. Nestlé responded with a higher thrust on advertising and different size
packs at different price points. Though Kissan gained market share over the next
few years, Maggi was able to hold on to its own market share. Meanwhile the
operational costs of Maggi noodles had increased considerably, forcing the
company to increase the retail price. By early 1997, the price of a single pack had
reached Rs 10. Volumes were still languishing between 13,000-14,000 tones.
Pricing and Product Development:
It was at this point in time that Nestlé decided to change the formulation of Maggi
noodles. The purpose was not only to infuse ‗fresh life‘ into the brand, but also to

9. save money through this new formulation. The company used new noodle-
processing technology, so that it could air-dry instead of oil-fry the noodles. The
tastemaker‘s manufacturing process was also altered. As a result of the above
initiatives, costs reportedly came down by 12-14%. To cook the new product,
consumers had to add two cups of water instead of one-and-a-half cups. The taste
of the noodles was significantly different from what it used to be. The
customer backlash that followed the launch of the new noodles took Nestlé by
surprise. With volumes declining and customer complaints increasing, the company
began to work on plans to relaunch ‗old Maggi‘ to win back customers. In addition, in
1998, Nestlé began working out a strategy to regain Maggi‘s position in the soup
segment. To counter the Knorr threat, the company relaunched Maggi soups under
the ‗Maggi Rich‘ brand in May 1998. The soups were not only thicker in consistency
than those produced earlier, the pricing was also kept competitive and the
packaging was made much more attractive. However, Knorr took Nestlé by surprise
by launching one-serving soup sachets priced as low as Rs 4. HLL too launched
two-serving sachets of Kissan soup priced at Rs 7. As Maggi did not have any
offerings in this price-range, it lost a huge portion of its market share to Knorr. The
relaunch prompted market observers to compare Nestlé‘s move with US soft drinks
major Coca-Cola‘s ‗New Coke‘ fiasco. However, the company disagreed, ―It‘s a
hard-5 nosed strategy, that mixes nostalgia with the consumer‘s voiced preference
for the product it has been bred and brought up on. The reintroduction is Nestlé‘s
acknowledgement of the loyalty of the Indian mother and the child to the original
product.‖ By May 1999, Nestlé‘s decision to bring back the ‗old Maggi‘ seemed to
have paid off. Two months after the relaunch, the monthly average sales of Maggi
noodles n the northern region rose 50% in comparison to the Product And Brand
Management did not taste very good. The interest generated by the novelty of the
product soon died out and sales began tapering off. Eventually, Nestlé had to
withdraw Maggi Macaroni completely from the market. Nestlé had not even
recovered from Macaroni‘s dismal performance, when it learnt to its horror that
Knoor 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
popular advertisement campaign for the Maggi Hot & Sweet sauce brand.
These humorous advertisements, featuring actors Pankaj Kapoor and Javed Jafri,
used the tagline, ‗It‘s different.‘ However, during mid-1997, HLL began promoting its
Kissan range of sauces aggressively and launched various Innovative variants in the
category.

10. Nestlé responded with a higher thrust on advertising and different size packs at
different price points. Though Kissan gained market share over the next few years,
Maggi was able to hold on to its own market share. Meanwhile the operational costs
of Maggi noodles had increased considerably, forcing the company to increase the
retail price. By early 1997, the price of a single pack had reached Rs 10. Volumes
were still languishing between 13,000-14,000 tones.
Pricing and Product Development:
It was at this point in time that Nestlé decided to change the formulation of Maggi
noodles. The purpose was not only to infuse ‗fresh life‘ into the brand, but also to
save money through this new formulation. The company used new noodle-
processing technology, so that it could air-dry instead of oil-fry the noodles. The
tastemaker‘s manufacturing process was also altered. As a result of the above
initiatives, costs reportedly came down by 12-14%. To cook the new product,
consumers had to add two cups of water instead of one-and-a-half cups. The taste
of the noodles was significantly different from what it used to be. The
customer backlash that followed the launch of the new noodles took Nestlé by
surprise. With volumes declining and customer complaints increasing, the company
began to work on plans to relaunch ‗old Maggi‘ to win back customers. In addition, in
1998, Nestlé began working out a strategy to regain Maggi‘s position in the soup
segment. To counter the Knorr threat, the company relaunched Maggi soups under
the ‗Maggi Rich‘ brand in May 1998. The soups were not only thicker in consistency
than those produced earlier, the pricing was also kept competitive and the
packaging was made much more attractive. However, Knoor took Nestle by surprise
by launching one-serving soup sachets priced as low as Rs 4. HLL too launched
two-serving sachets of Kiss an 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
relaunch prompted market observers to compare Nestlé‘s move with US soft drinks
major Coca-Cola‘s ‗New Coke‘ fiasco. However, the company disagreed, ―It‘s a
hard-5 nosed strategy, that mixes nostalgia with the consumer‘s voiced preference
for the product it has-been bred and brought up on. The reintroduction is Nestlé‘s
acknowledgement of the loyalty of the Indian mother and the child to the original
product.‖ By May 1999, Nestlé‘s decision to bring back the ‗old Maggi‘ seemed to
have paid off. Two months after the relaunch, the monthly average sales of Maggi
noodles n the northern region rose 50% in comparison to the Product And Brand
Management previous year. In July 1999, ‗Maggi‘ the brand, was promoted as the

11. biggest brand in Nestlé‘s portfolio of brands in India, overtaking brands such as
Nestum and Cerelac. Nestlé believed that Maggi had immense potential as it was a
very ‗flexible‘ brand under which regional variants could be introduced to meet
various market needs. Company sources claimed that with reasonable price points
and innovative products, Maggi could emerge as a top brand and a major growth
driver for the company. To further support the brand, Nestlé carried out various
promotional activities as well. These included the August 1999 ‗Fun-Dooz‘ campaign
and Jungle Jackpot campaigns. 6 As a result of the above initiatives, Nestlé claimed
to have cornered an 81% market share of the 20,000 tones noodles market by the
end of 1999.Nestlé sources claimed that Maggi noodles outsold the competition four
times over and that more than four Maggi noodle cakes were consumed every
second in the country
SWOT Analysis of Maggi as Brand
Strengths
 Established Family Brand
 Strong Global Corporate Brand ( NIL )
 Specialization in food processing category marketing and distribution in Urban
Market leader
 Presence of other product segments of food category : Dairy Products,
 Chocolate, Infant foods
 Pioneer and Leader so 1st mover advantage in Noodles, Sauce, Ketchups and
Soup market.
 Nestle symbolization of warm, family & shelter
 Research and Development Division in India
 New Noodles Plant in Uttaranchal
 Innovative flavors for Indian taste buds
 Distribution Channels

12. Weakness
 Generic Brand to Noodles in India
 Low rural market presence constraints
 Uniform Brand for all food category
 Brand Proliferation
 Heavily dependent on one flavour
 Health related issues
Opportunities
 Growing package and canned food market in India by 15% annually.
 High brand awareness of Indian consumer
 Other product category like Biscuits, Chips and Ready to Eat Market still
unexplored.
 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
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.
 Less 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 competitor

13. Nestle Maggi as a Leader :
Strategies
Maggi was the first noodles product in India and it was accepted by majority of its
target market which at the time of launch lay in the urban cities of India but with time
Maggi has substantially used different strategies to expand its existing market space
and by doing so it has kept CHALLENGERS like Top Ramens noodles at bay and
maintained its position as MARKET LEADER. For beating the challenge from different
domestic and international challengers Nestle Maggi has used the following steps to
beat the competition.
1.Strong Customer Relations: The campaign designed by Nestlé for Maggi‘s
silver jubilee hopes to work on the brand‘s strong consumer connect through
television, the Internet and print. The jingle gets a prominent play in the television
campaign. Nestlé, India‘s largest food products company, has decided not to litter the
sky with hoardings on the occasion. Instead, the ads will play on nostalgia.
Consumers who first sampled the brand as kids now run households. The campaign
seeks to strengthen the association. Thus, customers will be invited to share their
―Maggi moments‖ with the company. If the company likes the way you prepare
Maggi, you could find your photo on Maggi packs.
2.Good Packaging and Strong Dealer Vendor Relations: Convenience was the
unique selling proposition of Maggi when it was launched 25 years ago. For the first
time, consumers got something that was hygienically packed and convenient to
prepare. It was also the first fusion experiment on food in India.
3.Continuous process innovation: Instant noodles was an entirely new category
in the country, but it was given an Indian twist. Maggi came in four variants: Masala,
chicken, sweet & sour and capsicum. Of these, only two have survived — Masala and
chicken which sells largely in the eastern states. Masala continues to be the flagship
flavor. In the days that followed, it experimented with more variants, like a garlic- and
onion-free one for Gujarat. Some of these still exist, others were discontinued. The
turning point came in 2005, when Nestlé came out with Maggi Atta(whole-wheat flour)

14. instant noodles. All over the country, Atta is considered healthier than Maida or
refined flour which the company was using from day one. This helped the company
take the health platform, though Nestle General Manager (food business) Shivani
Hegde insists that the product never ran the danger of being classified junk food. It
was then that it added the tagline, health bhi, taste bhi (health as well as taste)
4.Repositioning as a healthier snack:―It is no longer an aspiration product
for any socio-economic category of consumers,‖ says Hegd That was also the time
when Nestlé was repositioning itself worldwide as a health and wellness company.
At the grassroots level, Maggi started associating with quiz contests and other
such events connected to mental and physical wellbeing. This positioning gave
Nestlé the platform to launch more products under the Maggi brand. It already had
Maggi soups, sauces and coconut milk in the market, but given the strong equity of
the brand, Nestlé could now extend it to newer categories. Thus, it recently came
out with fried Masala paste. In 2008, two brand extensions — Maggi Bhuna Masala
and Maggi Cuppa Mania Instant Noodles
5.Price Incentives: The company is taking no chances and is extending its
distribution reach to smaller towns and cities. Maggi happens to be Nestlé‘s most
widely distributed brand in the country. Through independent channels, it reaches
those villages where the company has no presence, according to Hegde. This is
also the time that Maggi‘s value-for-money pack priced at Rs 5is expected to come
handy. (The regular pack comes for Rs 10.)
6.Capturing New Customer Base : Maggi realized that one of the reasons for a
low market share in Gujarat was that most of Gujarat is do not eat garlic and Onions
so for Gujarat Maggi has come up with a special product which is devoid of onions
and garlic and marketed it as Jain Maggi. This helped them gain a completely
unconquered market of Jain Noodle eaters.
Hence by using these Strategies Maggi has been able to consolidate its position as
MARKET LEADER.

15. Initial Strategies of Maggi
 Maggi has faced lot of hurdles in its journey in India.
 The basic problem the brand faced is the Indian Psyche.
 Initially Nestle tried to position the Noodles in the platform of convenience
targeting the working women.
 However, the sales of Maggi was not picking up despite of heavy Media
Advertising.
 To overcome this NIL conducted a research.
 NIL's promotions positioned the noodles as a 'convenience product', for
mothers & as a 'fun' product for children.
 The noodles' tagline, 'Fast to Cook Good to Eat' was also in keeping with this
positioning.
 They promoted the product further by distributing free samples. Giving gifts on
return of empty packets, etc.
 Effective Tagline Communication

16. PRODUCTLIFECYCLE
A concept that provides a way to trace the stages of a product ¶s acceptance, from
its introduction (birth) to its decline (death).
Introductory Stage:-
 High failure rates
 No competition
 Frequent product modification
 Limited distribution
 High marketing and production costs
 Promotion focuses on awareness and information
 Nestlé India Ltd. (NIL), the Indian subsidiary of the global FMCG
 major, Nestlé SA, introduced the Maggi brand in India in 1982, with its launch
of Maggi2 Minute Noodles, an instant noodles product
 With the launch of Magginoodles, NIL created an entirely new food category -
instant noodles -in the Indian packaged food market. Because of its first-mover
advantage, NIL successfully managed to retain its leadership in the instant
noodles category
 Full-Scale Launch of New Products
Market Penetration Strategies
 Promotional campaigns in school.
 Advertising strategies: -focusing on kids.
 New product innovation according to the need of consumers:
 Veg. Atta Noodles.
 Daal Atta Noodles.
 Cuppa Mania.
Availability in different packages:
 50gms
 100gms

17.  200gms
 family packs (400gms.)
 Conductingregularmarketresearch
GrowthStage:-
 Increasing rate of sale
 Entrance of competitors
 Initial healthy profits
 Promotion emphasizes brand ads
 Prices normally fall
 Development costs are recovered
 10 yrs back it enjoyed around 50% market share in this segment which was
valued at around 250 corers.
 During the 1990s, the sales of Magginoodles declined, due to growing
popularity of Top Ramen , another instant noodles product.
 In order to improve sales ,NIL changed the formulation of Magginoodles in
1997.
 However, this proved to be a mistake, as consumers did not like the taste of
the new noodles.
 In March 1999, NIL reintroduced the old formulation of the noodles, after which
the sales revived. Over the years, NIL also introduced several other products
like soups and cooking aids under the Maggi brand
MaturityStage:-
 Declining sales growth
 Saturated markets
 Extending product line
 Stylistic product changes
 Heavy promotions to dealers and consumers
 Prices and profits fall
 In 2003 Hindustan Lever Ltd was all set to take on Nestlé‘s best selling
Maggi2-minute noodles by launching a new category of liquid snacks under its
food brand, Knorr Annapurna.
 The new product, called Knorr Annapurna Soupy Snacks, was priced
aggressively at Rs 5 and had four variants: two chicken options and two

18.  vegetarian. Like Maggi, Soupy Snacks will be an in-between-meals snack and
will be targeted at all age groups, particularly office-goer
SegmentationTo Differentiation:
Classic Noodles -5 and 10 yrs.
Veg. Atta Noodles -Health Conscious.
Rice Mania-Teenage
CuppaMania-Office goers, Working women
Decline Stage:If no product innovation brought
 Long-run drop in sales
 Large inventories of unsold items
 Elimination of all non essential marketing expenses
 Rate of decline depends on change in tastes or adoption of substitute products
Extending the PLC
 Change product
 Change product use
 Change product image
 Change product positioning
CATEGORIES OF NEW PRODUCT/REVISING THE PRODUCT
New-To-The-World
New Product Lines
Product Line Additions
Improvements/Revisions
Repositioned Products
Lower-Priced Products

19. Variants of Maggi:-
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, ChillyChow and Shahi Pulao)
 Maggi Cuppa mania (Masala yo, Chilli chow yo)
2. Sauces
 Teekha masala
 Tomato chatpat
 Imli khata mitha
 Tomato ketchup
 Hot and sweet
 Tomato pudina
 Ginger, Garlic & Coriander
 Maggi Oriental Chili 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

20.  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
Analysis (why Atta Noodles Failed???
 In 2005 Nestlé India launched MAGGI Vegetable Atta Noodles.
 Based on consumer needs and evolving trends for more whole grain based
products.
 Extensive Research and Development expertise to develop Maggi
Vegetable Atta Noodles.
 Maggi Vegetable Atta Noodles will provide the dietary fiber of whole wheat to
facilitate good. health and wellness

22. 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 have 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 f alls into the category of ―convenience-savvy time misers‖ who would
like to get something instant and be over with it quickly.
Positioning:
Market Positioning is the act of designing the company‘s offerings and image to
occupy a distinctive place in the minds of the target market. The goal of positioning
is to locate the brand in the minds of consumers to maximize 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 have 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

23. 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 then packaged or frozen, but the trend is changing and the new
fast food generation is slowly changing. Riding on the success of noodles, Nestle
India, tried to make extensions of the Maggi brand to a number of products like,
sauces, ketchups, pickles, soups, tastemakers and macaroni in the mid-1990s.
Unfortunately, the macaroni and pickles didn‘t pick up as expected. The soups and
sauces did somewhat fine, gathering considerable sales volumes and have
satisfactory presence even today. ‗Maggi Noodles‘ itself faced a bit of difficulty with
respect to‘ taste‘, and nearly lost its position in the minds of Indian
consumers in the late 1990s. When Nestle changed the formulation of its
tastemaker, the ominous packet that came along with Maggi Noodles, a major chunk
of consumers were put-off and sales started dropping. Also, Maggi‘s competitor ‗Top
Ramen‘ took advantage of the situation and started a parallel aggressive
campaign to eat into Maggi‘s market share. But the company quickly realized 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 world wide Maggi
sales. The brand has grown to an estimated value of Rs 160-170 corer and
contributes at least 8–9% to Nestle India‘s top line. All the same, some FMCG
analysts feel that the brand has not done much to expand the noodles category.
Even after 25 years of its launch, the size of the instant noodles market is yet quite
small at Rs 300 crore. But yes, the parent company, Nestle India Limited has
certainly encouraged the brand to enter into other culinary products
Recommendation

24. 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
company‘s profit margins but also it will leverage the brand image of Maggi.
 The company should advertise its products by depicting attributes related to
Health like Nutrition values, % of Vitamins, Proteins etc. This would help in
customers perceiving the product as Healthy.
 Foray into other food products like chips, chocolates etc under its sole brand
name would not only help in Brand extension but will also enhance Maggi‘s
market share.
Future
 Nestlé India‘s objective is to manufacture and market the company‘s products
in such a way so as to create value that can be sustained over the long term
for consumers, shareholders, employees and business partners.
 Maggi‘s aims to create value for consumers that can be sustained over
the long-term by offering a wide variety of high quality, safe food products at
affordable prices.
 The company continuously focuses its efforts to better understand the
changing lifestyles of modern India and anticipate consumer needs in order to
provide convenience, taste, nutrition and wellness through its product
offerings.