Marketing Management Report on Marketing Mix of Nestle Maggi

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1 Marketing Mix of Nestle Maggi
Marketing Management Project Report
On Marketing Mix Of Nestle Maggi (Noodles)
Submitted by
Team 11
Arshraj Teotia - 20DM045
Barkha – 20DM057
Avinash Kukkala – 20DM051
Chetan Sharma – 20DM065
Deepanshu Pal Singh – 20DM071
Research Guide
Professor Dhruva Chak
Assistant Professor, BIMTECH
ACKNOWLEDGEMENT

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2 Marketing Mix of Nestle Maggi
We are grateful to Birla Institute of Management Technology,
Greater Noida for giving us an opportunityto pursue our research on
“Marketing Mix of Nestle Maggi”. I wish to thank Professor Dhruva
Chak, BIMTECH,who has been a perpetual source of inspiration and
offered valuable suggestionsby serving as our Online Research
Guide.Withouthis guidance,it would have never been possiblefor us
to complete the project.
We would also like to thankMs. Aditi Sharma, Area Sales Manager–
Nestle who helped us in collectinginformation for this project. We
would also like to thankour parents,friends, and acquaintances,
whosoeverwas included in this project directly or indirectly.
EXECUTIVE SUMMARY
The marketing research project has been written keepingin the mind
the operations of Maggi (Noodles)in India. The research helped us to
understand the pricing, promotion strategies and distribution
channel of Maggi.
In the first part of project report, general information aboutthe
company has been gathered.Information was gathered from primary
and secondaryresources.
In the second part, the report covers the Maggi India’s market size,
growth, trend, opportunity,threats, competitors, market share etc.
In the third part, a questionnaire was prepared to get insights of
behaviourof consumerof different age groups and interviews were
taken which helped us in understandingthe staff of Nestle India like
Area Sales Manager.
Due to restrictions and lockdown,the surveys were conducted online
where we floated a survey form consistingof questions,targeting
certain aspects of Nestle Maggi India.
INDEX

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3 Marketing Mix of Nestle Maggi
S No. Particulars Page No.
1 About The Company 4
2 Market Growth 5
3 Competitors 5 - 6
4 Segmentation, Targeting and
Positioning
6 - 7
5 Marketing Mix 7 - 9
6 Market Share 10
7 SWOT Analysis 10 - 12
8 Recommendations 12
9 Annexure I 13 - 14

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4 Marketing Mix of Nestle Maggi
INTRODUCTION
About the Company
In the FMCG IndustryNestle is one of the largest companies in the
world amongHUL, P&G, Kraft, Britannia etc. Nestle was
established in 1866 as Anglo-Swiss condensed milk company.In 1905
a merger happened with Henri Nestle’s company,and was known as
Nestle Group. The companyis headquartered in Switzerland.Nestle
has a vast range of products from all type of foods to beverages.
Maggi is a food brand which was founded by Julius Maggi launched
in Switzerland in the year 1886.In 1947,it became part of the parent
companyNestle. Maggi mainly comprises of instant noodles,soups,
sauces,bouillonsand cooking aids. Maggi was launched in India in
the year 1983.It is marketed by the name maggi “2 minutes
Noodles”.
In May 2015,Maggi had fallen into a big controversyin India
regarding its instantnoodles due to which it was banned in the
country. The ban was due to the high levels of monosodium
Glutamate (MSG) and lead (Pb), due to which maggi’s share felt
drastically down to approx. 10 % but maggi regained faith within
some time and has reached top spot again with market share of
approx. 60% in 2020.

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5 Marketing Mix of Nestle Maggi
MARKET GROWTH
Maggi’s one of the majorpromotions are through “Word Of Mouth
Competitors of Maggi
There are 5 majorplayers in this sector includingmaggi and it is
dominated bymaggi with it’s 60% share. Some of the major
competitors in this sector are
1. Sunfeastyippee with the share of 10%
2. Chingnoodles
3. Knor soupyNoodles
4. Patanjali Aata Noodles

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6 Marketing Mix of Nestle Maggi
SEGMENTATION:
Market segmentationdivides the vast market into small
homogeneousgroup of customers who have similar needs or wants
which could be satisfied by specific products. Segmentation of Maggi
is based on Demographic,Psychological,Behavioural and Geographic
conditions like Age, Eating Habitand Lifestyle of Urban Families.It
mainlyfocused on age and eating habits of urban families
TARGETING:
Targetingrefers to company’s selection of suitable market segment
and facilitate it with respect to the likelihood of profitability and
weatherthe segmentfit with company’s identity.The targeted
segmentfor Maggie is kids, youth and working individuals who have
a fast paced life. Since its beginning,its focus was to develop food
products for people with busylifestyle.
POSITIONING:
Positioningis the process of creating a clear and unique image of the
brand and its product offering in the eyes of the customer. Maggi
used the below principles to position itself as the topmostbrand.
1. Product Differentiation:Maggi’s claim as a healthyand ready
to make in 2 minutes which was not done by any of its
competitor lead to their differentiation from the other players in
the eyes of general population.

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7 Marketing Mix of Nestle Maggi
2. PositioningStatement:Positioned their product as a fast relief
from hungerand well known slogan 2 minute noodles.The
mass population lookat Maggi as Readyto eat and Tasty and
fun loving.
3. Product Image:In India Maggi become as a synonym for
noodles,which is the main reason for other brands havinghard
time creating an image for their product.
4. Service Differentiation:To maintain its top position in market,
Maggi always look after the needs,desires and prerequisites of
its customers.
Marketing Mix
PRODUCT
There are four types of Maggi in the noodles category:
Maggi 2 Minutes Noodles

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8 Marketing Mix of Nestle Maggi
Maggi Oats
Maggi Chicken Noodles
Maggi Nutritious
PLACE
DISTRIBUTIONCHANNEL-Producers to Distributors to
Wholesalers to Retailers to Consumers.
Place refers to the point of sale. In every industry, catching the eye of
the consumerand making it easy for her to buy it is the main aim of
a good distribution or 'place' strategy. Retailers pay a premium for
the right location.In fact, the mantra of a successful retail business
is 'location,location and location'.
Maggi follows an intensive distribution channel.Its products are
widely available.The reason behind its top position is its deep reach
to every remote area. Maggi Noodles are directly taken from the
factories which are independentlymanaged to carry and Forward,
Agencies store in their large warehouses and pass them to the

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9 Marketing Mix of Nestle Maggi
wholesalers.Thesequantitiesare then distributed amongthe
retailers or to the end customerthrough hypermarkets,othersmall
businesses.The retailers can be convenience stores or local
supermarkets. It is one thing to have a successful product. It is a
completelydifferent ball game to ensure time and time again that
this top of the line product reaches the nooks and corners of the
world. Even if you go to the Himalayas,you will find Maggi selling
there at select places.This single factor – distribution,has been the
backbone for the success of the maggi.
PRICE
Maggi uses a cost-based pricing strategy to tap in to various markets.
Nestle strives to capture maximum market share with low prices and
high-qualitystandards.As Maggi is trying to tap into all segments of
income category it keeps differential prices depending upon the
locations across country. Also, its offerings are available in wide
variety of packages so that people can buy according to their needs.
In recent times Maggi has started coming up with new products like
the cup range and Hot Heads noodles which it targets for the higher
income level segments and hence are priced at higher range. Maggi
has a very clear-cut policy regarding its prices. From its initial years
it has kept low pricing policy because,its consumers mostlybelongto
the average middle class group. To make the product affordable they
had to tone down their prices but the volumes the product generates
has helped the companyin maintaininga healthyprofit.
PROMOTION
Maggi has used advertisingas its main promotional strategy to
create awareness and for brand recall. Initiallyit focused on kids and
working women who have very less time to prepare food. The
advertisements mainlyflashed on kids channels with effective tag
lines of “Bas 2-minute”and the jingle “Maggi Maggi Maggi”. It has
also used the “Miss you Maggi” ad campaign to regain back the lost
customers after the Maggi ban in India.As sales promotional
strategies over the years it has attached various free goodies with its
products such as free samples,fun books and toys. Maggi has also
offered discounts,Scratch n Win schemes.It also used many

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10 Marketing Mix of Nestle Maggi
celebrities notablyAmitabh Bachchanand Madhuri Dixit for brand
endorsements.
Market Share
Maggi has now attained over 60% market share but it is still less
than its pre-crisis period which used to be 75% of market share.
Maggi was banned byFSSAI in June 2015 for containingLead
beyond the Permissiblelimits and after Legal battles, the brand was
back into Market in November2015.Maggi has 30% share in total
sales of the Company. Nestle India had crossed 10000 crore sales
mark in 2017.
SWOT ANALYSIS
Strengths of Maggi
1. Maggi is a market leaderin noodles categorywith high brand
loyalty
2. Nestle as a parent company with rich history and beingfinancially
stable,good product distribution adds to the strengths of Maggi
3. Other than Instant noodles,it also offers lots of Varieties like
Sauce, Soups etc. So, by having large SKU’s (Stock keepingunit),
Maggi have an advantage over its competitors.
4. Strong visibility and excellentmarketingof Maggi made it a Top of
the mind brand.
5. Easy to cook feature made maggi very popularamong students,
youngcouples, youth, Restaurants & Road side stall and Canteens
contributingto its success.
Weaknesses Of Maggi

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11 Marketing Mix of Nestle Maggi
1. Controversyof Maggi being harmful to health caused a lot of
Damage to its brand image.
2. Intense competitionfrom Local and National players lead to
decrease in market share in the recent years even when the Market
size was expanding.
Opportunities For Maggi
1. Companyshould tie-up with Restaurants,Schools and Hostels to
make Maggi a small part of the daily life of Consumers.
2. It is majorlyused in urban areas as it can be cooked instantly,It
should target on Rural market as well.
3. Maggi should try to expand its product categories in otherready to
eat products like Corn flakes, Chips etc...
4. Maggi should launch new flavours which can help the brand group
in retaining its existingcustomers.
5. It should leverage the Nestle's brand image to become a global
brand
Threats To Maggi
1. Cut throat competition from local and national players which leads
to price wars and reduction in market share.
2. Strict regulations of government affects the business
3. Commoditizationof the product.
4. Does not belongto “healthy product” category

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12 Marketing Mix of Nestle Maggi
RECOMMENDATIONS
 Nestle should focus on awareness programmes by doing more
advertisements,road shows etc. which will help in building the
brand image.
 Nestle should widen its distribution channel for maggi, more
delivery trucks and more distributors should be added to the
channel so that consumers can find maggi at right time, right
place and in right quantity.
 Extensive advertisementfor the Maggi (Atta Noodles)as its
positioningis more of junk food and less of Nutritious in
consumer’s mind
 Maggi should bring back its price to Rs10 as competitors of
maggi offers in Rs10 i.e. Yippee.
 There is major requirementfor change in packaging and its tag
line as it creates negative image in consumer’s eye,when it is
not cooked in 2 minutes.

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QUESTIONNARE
Questions Options
Name
Age Below 18
18-30
31-50
Above 50
Gender Male
Female
Prefer not to say
Category Student
Employed
Home Maker
Own Business
Other
Are You a Maggi Person? Yes
No
How Frequently Do You Eat
Maggi?
Daily
Very Frequently
Ocassionally
Rarely
If Maggi Is Not Available,
what Other Noodles Would
You Prefer?
Patanjali Noodles
Yippee
Knor Noodles

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Ching’s Hakka Noodles
Rank The Below Noodles
Brand On The Basis Of
Preference.
Maggi
Patanjali Noodles
Knor Noodles
Ching’ Hakka Noodles
Yippee
Which Quantity Pack Do
You Prefer?
Single Pack
Pack Of Two
Pack Of Four
Pack Of Eight
Pack Of Twelve
Pack Of Twenty Four
How likely Do You
Recommend Maggi?
Unlikely
Most Likely
What Do You Dislike About
Maggi?
Price
Quality
Quantity
Nutrition
Taste
Other
Are You Happy With The
Current Price And Size
Variants Of Maggi?
Yes
No
Maybe
How Do You Percieve
Maggi?
Good for Health
Ready To Eat
Tasty/Fun Loving
Junk Food
Since Corona Virus
Outbreak, Is there any
change in your
Consumption For Maggi?
Yes
No
Maybe
If You Could Change Just
One Thing About Maggi,
What Would It Be?