I Miss. VAISHNAVI S. S. SIKARWAR of T.Y.BMS.
(Bachelor Degree of
Management Studies Semester – V) hereby declare that I have completed the
project on IMPACT OF ADVERTISING ON MAGGI in the academic year
The information submitted is true and original to best of my knowledge.
Date of Submission.
Signature of Student
(VAISHNAVI S. S. SIKARWAR)
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
Gifts (such as toys and utensils) in return for empty noodles pack.
According to analysits the focus on promotion turned out to be the single largest
factor responsible for Maggi‟s 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 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 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 Maggi‟s popularity became
highly attributed to its “extremely high appeal to children”. As a result, Maggi‟s
annual growth reportedly touched 15% during its initial years.
It gives immense pleasure to present what impacts “Maggi” as a product has made
on advertizing in the world and its different strategies to try to become the number
ONE product in the world.
I am very much grateful to my friends and my teachers who have helped me in my
project and supported me in all manners. It was a great experience working on this
CHAPTER 1- INTRODUCTION TO MAGGI
1.2 Sample Unit
1.5 Various Products under Maggi
1.6 Product Life Cycle of Maggi
CHAPTER 2- PROMOTION AND STRATEGIES
ADOPTED BY MAGGI
2.1Trade Promotion Strategy
2.2 Consumer Promotion Strategy
2.3Sales Promotion Strategy
2.6 360 marketing Strategy
2.7 Distribution Strategy
2.8 Competitive Strategy
CHATER 3- MARKETING MIX OF MAGGI
CHAPTER 4- VARIOUS MAGGI ANALYSIS
CHAPTER 5- ADVERTISING DESIGN OF MAGGI
5.1Taste and preferences of consumers
5.2Demography and psychography of consumers
CHAPTER 1- INTRODUCTION TO MAGGI
Maggi is a Nestlé brand of instant 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. It
quickly became a pioneer of industrial food production, aiming at improving the
nutritional intake of worker families. It was the first to bring protein-rich legume
meal to the market, which was followed by 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 established today.
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 pakoras 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, Nestlé faced difficulties with their
sales after the initial phase. The reason being, the positioning of the product with
the wrong target group. Nestle had positioned Maggi as a convenience food
product aimed at the target group of working women who hardly found any time
for cooking. Unfortunately this could not hold the product for very long. In the
course of many market researches and surveys, the firm found that children were
the biggest consumers of Maggi noodles. Quickly they repositioned it towards the
kids segment with various tools of sales promotion like color pencils, sketch pens,
fun books, Maggi clubs which worked wonders for the brand.
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 „yummy taste worked!
1.1 SAMPLE SIZE
My sample size for the research was 100 customers and consumers of Maggi.
1.2 SAMPLE UNIT
My sample unit includes mostly all age groups as I wanted to evaluate the how
famous Maggi is among the children, youth, adults and old age people. Thus I
distributed my questionnaires to all the customers and consumers of Maggi of
that are the common people.
To study the influence of Maggi as a brand on consumers mind set.
To evaluate sources of Brand equity of Maggi like Brand awareness, Brand
image, Brand association, Brand recall.
To study the Brand performance of Maggi products.
To examine Brand Imagery, Brand Quality perceived by customers, Brand
credibility, consideration, superiority and feelings.
To study the medium of media through which they became aware of Maggi.
“Maggi is one of the most famous and familiar product that can be targeted to
all age groups”.
“Easy to cook strategies attracts the consumers”.
“Creative interaction blogs for customers”.
“Focus mainly on Health Benefits”.
1.5 Various Products under Maggie
The product mix of Maggi is divided into various categories defined below. The
company has launched various products under each category as mentioned below.
a) Maggi 2-Minute Noodle (Masala, Chicken,
Curry and Tomato)
taste)vegetables Atta Maggi Noodles
c) Maggi Rice Noodles (Lemon Masala,
Chilly Chow and Shahi Pulao)
d) Maggi Cuppa mania (Masala yo, Chilli chow yo)
a) Teekha masala Tomato chatpat Imli khata mitha Tomato ketchup Hot and sweet
b) Ginger, Garlic & Coriander
c) Maggi Oriental Chilli Garlic
d) Ginger, Garlic & Coriander
3. Maggi Pichko
4. Soups Healthy
a) Chef Style i. Cream Mushroom
ii. Sweet Sour Tomato Noodles
iii. Tangy Tomato Vegetables
b) Home Style i. Creamy Chicken
ii. Mixed Vegetable
iii. Rich Tomato
c) Chinese Style i. Chinese Hot Sour
ii. Chinese Sweet Corn Chicken
iii. Chinese Sweet Corn Vegetables
iv. Chinese Hot & Sour Vegetables
5. Maggi soup sanjivni
6. Maggi bhuna masala
a) Bhuna masala for gravy dishes
b) Bhuna masala for vegetable dal
7. Maggi magic cubes
1.6 Product Life Cycle of Maggi
• Sales growth tends to be slow at this stage.
• Cost per customer is high.
• Negative profits.
• Competitors are few.
The marketing objective is to create product awareness.
The product launched keeping in mind the working women and children…
• No competition
It was the pioneer in the instant noodle market.
Producer -- Distributor --
Retailer -- Consumer
The initial pricing strategy was low pricing strategy to make product affordable.
Promotion focuses on awareness and information Promoted with the tag line
“ BAS 2 MINUTE.”
Promotion done by - Giving gifts on empty packets.
• Rapidly rising sales.
• Rising profits.
• Unit manufacturing cost declines.
• The marketing objective is to maximize market share.
• Sales increased.
• 50% market share.
• No.1 brand.
PRICE- prices were kept normal.
PRODUCT- no any new changes
PROMOTION-“GOOD TO EAT FAST TO COOK”
Sales are at peak.
• Profits are high.
• Cost per customer low.
• The marketing objective is to maintain or extend the market share.
Introduced new Variety.
– Price Rs. 5 Onwards.
– Big Time Promotional Offers.
– Slow Down In Sales.
– Market Saturation.
- Maggi introduced wide variety of products like Dal atta noodles, Chicken
maggi, Maggi cuppa mania.
PRICE- Maggi still comes in very affordable prices starting from Rs. 5, they
reduced the quantity instead of increasing price
DISTRIBUTION- Distribution became more intensive. Adopted various intensive
programme for encouraging the product over their competitors in the market.
Segmentation To Differentiation
• Classic Noodles - 5 to 10 yrs..
• Veg. Atta Noodles - health conscious.
• Rice Mania – teenagers..
Cuppa Mania - office goers
• Sales started declining
• Profits are at decline
• Cost per customer still at low
Sales saw a decline in 1990‟s
-Formulation changed from fried base to air dried base.
New product launched but failed-Dal atta noodles of
Tough competition from TOP RAMEN.
Reintroduction of MAGGI:
• Reintroduced in 1999
• Increased Distribution
• Focus on new segments of Society
• New & Interesting TV Commercial
CHAPTER 2- PROMOTION AND STRATEGIES ADOPTED BY MAGGI
Point of purchase advertising: Point-of-purchase advertising is any form of special
display that advertises merchandise. As their main target is children, Maggi packs
are usually placed in low counters, shelves or hung in twine baskets within their
eye level. Because, children often influence purchases by pestering their parents to
buy things on seeing them.
2.2 Consumer Promotion
Sampling: Initially NIL aggressively promoted Maggi noodles through several
schemes like distributing free samples, giving gifts on their return of empty packs,
etc. the company has spent a huge amount of money in communicating the
product‟s benefit to the target consumers.
2.3 Sales Promotion
• To introduce new products
• To attract new customers and retain the existing ones
• To maintain sales of seasonal products
• To meet the challenge of competition
• Exchange schemes
• Price-off offer
• Scratch and win offer
• Money Back offer
• Maggi Noodles or Retailers sale promotion initiatives
• Maggi was distributed free in schools and offices to promote trial
• Return gifts on empty packs
• Maggi fun book and stickers with funky animal facts.
• Organized retails SP
• 7% discounts on 6 piece pack (56 MRP), 5 rupee discount on 8 piece pack(
78 MRP). These are promotional schemes given by retailer itself not by NIL.
one soup pack with 8 piece pack.
• In Past company has promotional schemes like 4piece pack with that of 36
instead of 40
• Large pack sizes at the top with decreasing pack sizes as going downward.
This is because that for a retail outlet the more value is generated large pack thus
they try to project big size at convenience place. Outer display shelves are
purchased by company (Reliance mart).
2.4 Marketing Strategy
Conducting promotional campaigns in schools is one of their main marketing
Advertising strategies: The focus of the advertisements is on the children as
they are their major consumers.
Availability in different pack sizes: Packing is the biggest plus point of Maggi
market penetration. They have the product available in all sizes to tap the
categories of consumers.
There is a good innovation present in the products. Maggi 2 minutes noodles,
Cup-o-Maggi, Atta noodles etc. are the different forms of the same product
available in market.
2.5 Message Strategies
Maggi follow different message strategies. They use cognitive strategies as product
information are provided for the consumers on the ads. NIL also involve affective
message strategies as they relate Maggi noodles with the emotions, like it is a fun
product for kids.
2.6 360 Marketing Strategy
To maintain the image of the brand Maggi, NIL has adopted the 360 degree
marketing strategy. They promoted the product as a health product. Initially NIL
aggressively promoted Maggi noodles through several schemes like distributing
free samples, giving gifts on the return of empty packs, etc. the company has spent
a huge amount of money in communicating the product‟s benefit to the target
consumers. They have spent the huge amount on various small events for the kids
and on advertisement of the Maggi like electronic and print advertising.
2.7 Distribution Strategy
Maggi distribution strategy is a 3 chain system i.e.
Nestle – Distributor – Retailer
Nestle: It has decentralized Manufacturing where each plant operates on its own
requirement of production. There is no monolithic or centralized approach in the
production process. It follows two types of distribution paths. The first one being
traditional (Kirana Stores) in which the stock of Maggi is available to almost all
the small Kirana stores for the consumers. The second one is the institutional food
outlets in which the stock is available with every food malls like big bazaar, Apna
Bazaar, Reliance food outlets. So by making the product available everywhere,
Nestle tries to reach to its customers easily.
Distributor: Nestle offers 6% margin for distributors. The distributor has to pay in
advance to Nestle but he has to give the stock to the retailers on credit. Here they
try to target small and big shops both so that they can cater and reach to every kind
of customers from various strata of the society.
Retailer: Retailer gets 10% margin from distributor and 15% margin for new &
promotional products. Nestle also has brought various area space for different
promotional purposes. For promotional purposes, Nestle does the sampling both
wet and dry sampling at these promotional place.
2.8 Competitive Strategy
To beat the competition from Top Ramen and others in this segment, Nestle did the
Nestle introduced Maggi in new packs with different contests for the
It came up with innovative products like Maggi Pasta in two different
flavors – Masala & cheese Macroni.
It also focused on its advertising strategies by introducing new ones in
order to keep in touch with customers so that the image of the product
does not get washed away.
It made its product affordable by introducing small Maggi pack of Rs.5.
These competitive strategies are overlapping as the company has always
thought of different kind of strategies keeping in mind its competitors.
Though other brands came up with something similar to Maggi, but they had
temporary effects on consumers mind as consumers switched to the Maggi
brand for its taste.
Whenever, Wherever, However…
• Connecting with customers out of home…..in the movies.
• MAGGI Fun spots
• Supply in other nestle outlets.
• ITES/BPO employees
• They promoted the product by,
• Distributing free samples.
• Giving gifts on return of empty packets.
• Dry sampling-distributing Maggi packets.
• Wet sampling - distributing cooked Maggi.
• Availability in different packages 50gm,100gm, 200gm,etc..
• Effective Tagline Communication.
CHAPTER 4- MAGGI ANALYSIS
4.1 Maggi STPD Analysis
Segmentation: Based on life style and habits of urban families.
Targeting: Kids, office goers
Positioning: With statements as “2 minute noodles” and “easy to cook good
to eat” .
Differentiation: Taste, flavours, packaging.
The segmentation of Maggi was done on the basis of
• Eating Habits of Urban families
• Nestle positioned their product Maggi with the well known slogans such as
• “2 minute noodles”
• “taste bhi health bhi”
• “Easy to cook, good to eat”
• “fast relief from hunger”
• They also positioned it as hygienic homemade snack.
Target audience are:
• Working women
• Office goers
• Maggi was and is still differentiated on the basis of
4.2 SWOT ANALYSIS OF MAGGI BRAND
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.
Market leader in their segment. Strong brand loyal consumer base.
Wide range of distribution channel. Product according to the need of Indian
consumer. Innovative Product
Product is dependent on each other Not so much presence in rural market
Increasing number of working youth. Product has been acceptable in youth
category. Shift to rural market. Changing preference of consumer towards Chinese
food and fast food. Can foray into other food markets with its strong Brand name.
Price war with competitors. Strong presence of regional competitors.
Consumers don‟t perceive it as a “Healthy Product”.
4.3 Market Share
Maggi's Market Share in Ketchup Category
Maggi has a market share of 45% which is a high percentage. It dominates the
market in the ketchup segment.
Maggi's Market Share in Noodles Category
Maggi has a market share of as high as 80% in the noodles segment. It dominates
the market. It is the leader in this segment.
CHAPTER 5- ADVERTISING DESIGH OF MAGGI
5.1 Taste and Preferences of consumers
Health is the flavour of the season. Food companies in India are growing aware of
the increasingly changing consumption trends and taste preferences among the
Indian junta. No surprises, but this is the reason more and more companies are
coming up (or are actually re-marketing) with products that are healthy. Take for
example Coke and Pepsi; both have already started looking into the noncarbonated drinks category section. Maggi first introduced in the market Maggi
Atta Noodles – which it claimed was a healthy food as it was made of wheat flour
followed by soups.
Nestle India, in an effort to carry on with its trend of providing the Indian
consumer‟s healthy food recently introduced a range of Healthy Soups. The entire
range consists of the following; maggi tomato, mixed vegetable, tomato vegetable,
mushroom, chicken, sweet corn chicken and hot and sour vegetable. The product
is priced at Rs 25 for 70 grams.
Maggi became successful because it understood consumers. The brand never
wanted to change Indian consumer‟s habit. It did not have ambitions about
changing Indian‟s breakfast or dinner preferences. What Maggi did was to slowly
attach itself to Indian consumer's need without disruption.
Maggi was also closely watching consumer preferences. When consumers wanted
healthy food, Maggi launched Atta Noodle variants that were healthy. More
importantly this move addressed the concerns of Homemakers. The brand extended
itself to multiple segments but without diluting the core brand equity.
Maggi over these years have made lot of mistakes. It made mistakes because the
brand was willing to experiment. More importantly the brand learned from those
mistakes and corrected itself. Maggi also invested heavily in brand building. The
campaigns for one of Maggi‟s products were always there in the media which kept
the brand fresh in the mind of the consumers. Maggi personifies the basic
principles of understanding consumers, innovating and investing in the brand.
Maggi is one packaged food brand that has only seen its popularity grow in the
past many years and the secret to the success is that instead of trying to change the
food habits of consumers, it has tried to align itself with local tastes and
preferences with the „fast to cook and good to eat‟ promise.
To commemorate its successful journey through a quarter of a century in the
world‟s largest consumer market, the brand, last year, launched an innovative
campaign inviting its loyalists to share with it their Maggi stories and promised to
broadcast them to the world at large, thereby, making them the superstars
overnight. Along with television commercials, which aired individual consumer
stories of their lasting memories of Maggi, the brand displayed pictures of these
loyal customers on the Maggi packs. Nestle also introduced a website
Meandmerimaggi.in for engaging with them.
The company also rewarded its consumers by adding to the Maggi portfolio that
hitherto had sauces and soups in various flavours, a range of prepared dishes and
cooking aids such as Maggi Bhuna Masala and Maggi Pasta. So far focused on
urban consumers, the company also made a pitch for rural consumers by launching
Maggi Rasile Chow noodles at an inviting price of Rs4. Again, local tastes and
recipes have been at the core of all these marketing innovations.
“Creating delight and happiness in everyday meals is not just about providing tasty
food. It is about providing taste and health in a convenient combination,” says
Shivani Hegde, general manager, foods.
5.2 Demography and Psychography of consumer
1) Age and sex: - Maggi products are consumed by people of different age groups.
They are consumed by children, teenagers, adults as well as old people. They are
consumed by both genders male and female.
2) Income: - Maggi products are available at reasonable prices. So they are
consumed by the lower, middle as well as the higher class.
3) Religion and nationality: - Maggi products are famous and are consumed by
people of all religions and nationality.
1)Attitude: - Consumers of maggi have a positive attitude towards the product
which makes it the leader in the market. Maggi dominates the market.
Lifestyle determines the way of living of people. It
describes how a consumer leads his life. Maggi products are consumed by all.
5.3 Marketing Organization
Hierarchy of Effects: Maggi ads have already crated enough awareness, now
they focus on the other steps of hierarchy of effects model. The advertisement
of Maggi provides information about nutrition facts and several flavors
available, also attract kids with colorful background and execution of ads. This
ultimately results in actual purchase.
• Slice-of-life:In Maggi ads it is shown that, a hungry kid comes from school or
plays ground and tells mom that he is hungry, and the mother says, “just 2minutes” and cooks Maggi noodles for the kid. So, here the problem stated is
hunger and the solution is the product itself Maggi noodles.
• Dramatization:For example, in one ad, it was shown that a child, who is away
from home, is writing a letter to his mother that, he is missing his mother and
the noodles she used to cook for him. Then he smells something and look back,
he saw his friends cooked Maggi noodles for him and they says, they are also
missing their mom.
• Informative: info about nutrition facts and famous 2-minute cooking process.
Ad Media Selection
• Television & Radio: They have several television ads with the tagline “Fast
to cook, good to eat”, “just 2-minutes” , “taste bhi health bhi” etc. these ads
are telecasted on the commercial break of different kids and family oriented
programs on different channels, such as- Star Plus, Sony Entertainment TV,
Cartoon Network, Pogo channel etc. Maggi has recently launched “Me and
My Maggi” campaign in commensuration of 25 years of Maggi in India.
Similarly, Maggi ads are broadcasted between several radio programs to
attract attention of more number of customers.
• Magazines & Newspaper: Maggi‟s expenditure in print media is low.
• Maggi does not focus heavily on print media during its launch since its
initial target audience was mothers and kids.
• Some advertisements in the print media were used to highlight the
convenience factor of Maggi.
• Maggi introduced this advertisement in various magazines in 2003to
celebrate 20 years of its years of its product in India.
• Maggi has recently come out with advertisements in some weekly
magazines for its new atta noodles and rice noodles variants.
Maggi rice noodles mania had the highest column centimeter in print during jan –
aug ‟07 among the instant foods category. Growth in noodles/pasta print
advertising grew by 42% in jan-may05 compared to jan-may 04. Of this, maggi
vegetable atta noodles had 92% share
Organizational structure is the formal framework by which jobs tasks are divided,
grouped, and coordinated. Nestlé Maggi is a function-based organization. The
tasks are divided into separate jobs and then these jobs are grouped together under
different departments i.e. functional departmentalization is found in organization.
Each major area is kept under the manager who is specialist in that concerned field
and is responsible for all activities, which that department performs Organizational
structure of Nestle Maggi is hierarchical.
There is a chain of command that extends from upper
organization levels to the lowest levels and clarifies who reports to whom. The
orders move from upward to downward and suggestions move downward to
upward direction. The continuous improvement section is made for this purpose. It
encourages employees to give their suggestions and share the new ideas. The jobs
are formalized; there are explicit job descriptions, numerous organizational rules,
and clearly defined procedures covering work procedures. But in spite of formal
rules and regulations, Nestlé keeps on changing to keep a pace with the changing
environment. So, it is strict but not rigid organization. In effort to be more flexible
and responsive, there has been distinct trend in this organization toward
5.4 Consumer Feedback:
• For review the revenue and sales, and consumer feedback is taken into
• Maggi is NIL‟s largest brand (Nescafe was the largest until mid-1990‟s)
withsales (gross) of 2154.5 crore (FY11). It includes the sales of instant noodles
and pasta cooking aids, soups and sauces. Enjoying virtual monopoly in the
segment until FY10, NIL revenues from the segment have grown at a CAGR of
26.3% (CY04-11) backed by volume growth of 20.5% and price growth of
4.8%. Expected growth (CAGR CY11-13E) of Maggi is 20.5% (volume growth
CHAPTER 6- DATA ANALYSIS AND INTERPRETATION
Q 1) Are you a consumer of Maggi?
As we can see after the research 97% of people are aware about the brand
maggi and they are the consumer too.Thus we can make out how famous the
brand name maggi is among the people.
Q 1) Are you a consumer of Maggi?
Q 2) What is the brand that comes to your mind when we say the word noodles?
o Top Ramen
o Knorr Noodles
o Smith & Jones Noodles
o Sunfeast Yippee
Q3) Rank the following Maggi products with respect to frequency of purchase with
1 being the highest rank.
Q4) With what products would you associates the brand Maggi?
Q5) Which Maggi products in noodles category do you regularly buy?
o Maggi masala
o Maggi vegetable atta noodles
o Maggi dal atta noodles
o Maggi rice noodles mania
o Others( Plz Mention)
Q6) You came to know about Maggi from:
o T.V advertisements
o Word of mouth
o Other source
Q7) Do you perceive Maggi noodles as a healthy product?
Q8) Would you still prefer Maggi products if other competitors product are offered
in less price.