“A Study on of Effective Marketing Strategy of Nestle MAGGI”

“A Study on of Effective Marketing Strategy of Nestle MAGGI”
PES Institute of Advanced Management Studies Page 1
TABLE OF CONTENTS
SL.NO CONTENTS PAGE.NO
1. Introduction
2. Industry and Company
profile
3. Research methodology
4. Data analysis &
interpretation
5. Findings, suggestions &
conclusion
6. Annexure
7.

EXECUTIVE SUMMARY
Nestle India is a subsidiary of Nestle S.A of Switzerland. With six
factories and a large number of co- packer, Nestle India is a vibrant
company that provides consumers in India with products of global
standards and is committed to long term sustainable growth and share
holder satisfaction. The company is known for its brands in the milk
products and nutrition, prepared dishes and cooking aids, and
chocolates & confectionery segment.
Nestle leads the value sales of noodles in India with the market share
of 83.5%. A testament of Nestle‟s dominating of the sales of plain
noodles is the fact that for its instant noodles brand Maggi, among all
its global officers , India accounts for the highest level of volume
sales for the company.
This marketing plan analyses the current marketing mix of Maggi
noodles studies the popularity of the two new health variants
VEGETABLE ATTA and DAL ATTA noodles and makes
suggestions with regard to introducing a new brand “Cup O Maggi” in
cup noodle segment. Various tools like surveys and secondary sources
of information have been utilised for the purpose of this analysis.

CHAPTER 1
INTRODUCTION

CHAPTER 1
INTRODUCTION
INTRODUCTION:
 NESTLÉ's relationship with India dates back to 1912, when it
began trading as The NESTLÉ Anglo-Swiss Condensed Milk
Company (Export) Limited, importing and selling finished
products in the Indian market.
 After India's independence in 1947, the economic policies of the
Indian Government emphasized the need for local production.
 NESTLÉ responded to India's aspirations by forming a company
in India and set up its first factory in 1961 at Moga, Punjab,
where the Government wanted NESTLÉ to develop the milk
economy. with the procurement of bank loans.
Topic choosen for the study:
 I would be more happy to know and learn what are the proper
marketing strategies and steps undertaken by the Nestle & co in
making its product Maggi a global success.
 So my chosen topic „A study on Effective Marketing Strategy
of Nestle MAGGI‟ aims at knowing the different promotional
strategies used by Nestle.co.ltd in dominating the market.

Need for the study:
This study helps in knowing different and unique promotional
strategies required to Nestle Maggi.
OBJECTIVES:
help the company to learn more about the markets
company has been successful implementing
the aggressive marketing strategies.
SCOPE OF THE STUDY:
The study covers authorized wholesalers and retailers of Nestle
Maggi. This study helps in knowing different and unique promotional
strategies required to Nestle Maggi. This study is completely based
on Effectiveness of Marketing Strategy and its impact on Market
Share
RESEARCH
 Sampling size-50.
 Sampling method- Non probability sampling.
 Primary data- Questionnaire.
 Secondary data- Magazines , websites , Retailer.

LIMITATION:
 Time consumption is more.
 Due to company‟s policies certain information was not shared.
 This study cannot be generalized to other companies, it is
limited to Nestle.co Ltd.

CHAPTER 2
INDUSTRY AND COMPANY PROFILE
What is the FMCG Industry?
"Resilient, rewarding and really fast"
FMCG industry, alternatively called as CPG (Consumer packaged goods)
industry primarily deals with the production, distribution and marketing of
consumer packaged goods. The Fast Moving Consumer Goods (FMCG) are
those consumables which are normally consumed by the consumers at a regular
interval. Some of the prime activities of FMCG industry are selling, marketing,
financing, purchasing, etc. The industry also engaged in operations, supply
chain, production and general management.
The Fast Moving Consumer Goods (FMCG) industry in India is one of the
largest sectors in the country and over the years has been growing at a very
steady pace. The sector consists of consumer non-durable products which
broadly consists, personal care, household care and food & beverages. The
Indian FMCG industry is largely classified as organised and unorganised. This
sector is also buoyed by intense competition. Besides competition, this industry
is also marked by a robust distribution network coupled with increasing influx

of MNCs across the entire value chain. This sector continues to remain highly
fragmented.
INDUSTRY CLASSIFICATION:
The FMCG industry is volume driven and is characterised by low margins. The
products are branded and backe0d by marketing, heavy advertising, slick
packaging and strong distribution networks. The FMCG segment can be
classified under the premium segment and popular segment. The premium
segment caters mostly to the higher/upper middle class which is not as price
sensitive apart from being brand conscious. The price sensitive popular or mass
segment consists of consumers belonging mainly to the semi-urban or rural
areas who are not particularly brand conscious. Products sold in the popular
segment have considerably lower prices than their premium counterparts.
Following are the segment-wise product details along with the major
players

THE FACTS ABOUT THE FMCG INDUSTRY:
FMCG, otherwise known as CPG, is one of the biggest industries in the world
and there are a lot of facts that stand the FMCG industry apart as a career choice
FMCG companies are behind the biggest brands in the world.
FMCG is all about names, the products which everyone recognises from trips to
the supermarket or from ads on television. The brands that make up this sector
are the high profile ones, the ones everybody knows and loves. Think Coca-

Cola, Dettol and Dove. This is an industry that puts you in living rooms,
kitchens and bathrooms across the globe.
The FMCG industry changes fast and is constantly evolving.
It's fair to say there is never a dull moment in FMCG. From the pace at which
goods leave the shelves to the rate of product innovation and career progression,
things move quickly. And it doesn't end there. The brands themselves are
changing just as quickly. 40% of brands on the top 100 list twenty years ago
have already been replaced by new names today.
FMCG firms thrive on employee and customer retention.
Employee investment is a big part of the ethos of the FMCG world. Perhaps it's
because we understand the importance of loyalty. Customer loyalty can make or
break a brand. Take Twinning‟s, for example – a century after they entered the
top 100 brand list, they are still there and going strong. So it makes sense for
FMCG companies to encourage the loyalty of their employees too.
FMCG companies can beat the recession.
This is an industry that has proved itself very resilient to recession – with the
majority of companies in the sector weathering the financial storm in a way that
very few others have managed. Why? Well, consumers will always need to buy
the products created by FMCG companies. They may not buy big items like
refrigerators or cars in a recession, but floors still need to be cleaned, clothes
need to be laundered and aches and pains still need to be soothed.
The FMCG industry thinks bigger – and better.
This is an industry that offers things on a whole new scale. Where else could
you find yourself handling $150 million accounts? Working in FMCG gives
you the chance to be a part of some global success stories and influence the way
consumers shop for products. FMCG firms are always thinking of the next great
discovery or innovation – always developing and ever-changing to meet
consumer's needs.

FMCG has a history of delivering what consumers want.
Some FMCG companies' roots are over two centuries old – driving the industry
to a value of $570.1 billion. In short, to quote Sam Walton, founder of Wal-
Mart: "High expectations are the key to everything"

A. INTRODUCTION OF NESTLE COMPANY
Nestlé is...
...the world's leading nutrition, health and Wellness Company. Their mission of
"Good Food, Good Life" is to provide consumers with the best tasting, most
nutritious choices in a wide range of food and beverage categories and eating
occasions, from morning to night.
They believe that leadership is about behaviour, and they recognise that trust is
earned over a long period of time by consistently delivering on their promises.
Nestlé believes that it is only possible to create long-term sustainable value for
their shareholders if their behaviour, strategies and operations also create value
for the communities where they operate, for their business partners and of
course, for their consumers. They call this 'creating shared value'.
The Nestlé Corporate Business Principles are at the basis of their company‟s
culture, developed over 140 years, which reflects the ideas of fairness, honesty
and long-term thinking.
Nestlé can trace its origins back to 1866, when the first European condensed
milk factory was opened in Cham, Switzerland, by the Anglo-Swiss Condensed
Milk Company. One year later, Henri Nestlé, a trained pharmacist, launched
one of the world‟s first prepared infant cereals „Farine lactée‟ in Vevey,
Switzerland.
The two companies merged in 1905 to become the Nestlé we know today,
with headquarters still based in the Swiss town of Vevey. They employ around
328 000 people and have factories or operations in almost every country in the
world. Nestlé sales for 2011 were almost CHF 83.7 bn.

"Good Food, Good Life" is the promise they commit to everyday, everywhere
– to enhance lives, throughout life, with good food and beverages.
Ever since Henri Nestlé invented Farine Lactée to alleviate infant mortality,
Nestlé has been dedicated to enhancing lives. They strive to help consumers
care for themselves and their families by offering tastier and healthier choices.
Their dedication to great tasting, healthier and trusted products is tied to their
respect for the environment and the people they work with.
BUSINESS OF THE NESTLE:
Nestle is the largest food company in the world. It is present in all five
continents, has an annual turnover of 74.7 billion Swiss Frances. There are 509
factories are running in 83 countries, having 231,000 employs
COMPANY MISSION:
 At Nestle, they believe that research can help them to make better food,
so that people live a better life.
 Good food is the primary source of good health, so they are trying to
make good food. To provide fresh and pure products to the customers,
they introduced (SHE) Safety, Health and environment policy to protect
health of their employs and keep clean their surrounding environment.
COMPANY VISION:
 Vision of Nestle Milkpak Company is to expand business according to
the increasing demand of market.
 As per their company vision in 2020 production capacity of all plants
working in Pakistan is being increased. So extension of Kabirwala Plant
is the example of their company vision.

B. INTRODUCTION TO MAGGI NOODLES
Ever since its launch in India in 1983, this brand has become synonymous
with noodles. The bright red and yellow colours of the packet with the
brilliant blue “2-minute Noodles” printed on it has found a place on every
kitchen. Over the years, Maggi has grown as a brand and positioned itself as
a “Fast to cook! Good to Eat! “food product.
The history of this brand traces back to the 19th century when industrial
revolution in Switzerland created factory jobs for women, who were
therefore left with very little time to prepare meals. Due to this growing
problem Swiss Public Welfare Society asked a miller named Julius Maggi to
create a vegetable food product that would be quick to prepare and easy to
digest. Julius, the son of an Italian immigrant came up with a formula to
bring added taste to meals in 1863. Soon after he was commissioned by the
Swiss Public Welfare Society, he came up with two instant pea soups & a
bean soup- the first launch of 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.

However in India (the largest consumer of Maggi noodles in the world!) it was
launched in 1980 by Nestle group of companies. Maggie had merged with
Nestle family in 1947. When launched it had to face a stiff competition from the
ready to eat snack segments like biscuits, wafers etc. Also it had other
competitor the so called home made snacks which are till today considered
healthy and hygienic. Hence to capture the market it was positioned as a
hygienic home made snack, a smart move. But still this didn‟t work, as it was
targeted towards the wrong target group, the working women. After conducting
an extensive research, the firm found that the children were the biggest
consumers of Maggi noodles. Quickly a strategy was developed to capture the
kids segment with various tools of sales promotion like pencils, fun books,
Maggi clubs which worked wonders for it. No doubt the ads of Maggi have
shown a hungry kid saying “Mummy bhookh lagi hai” to which his mom
replies “Bas do minute!” and soon he is happily eating Maggie noodles.
Further the MAGGI 2-MINUTE Noodles has been renovated to provide 20% of
the RDA1 of Calcium and Protein for the core target group building on the
nutrition proposition “Taste bhi health bhi”. The company could have easily
positioned the product as a meal, but did not, as a study had shown that Indian
mentality did not accept anything other than rice or roti as meal. They made it
a easy to cook snack that could be prepared in just two minutes. The formula
clicked well and Maggi became a brand name.

PRODUCT MIX, BRANDS AND PRODUCT
OFFERING:
4.1 PRODUCTS MIX OF NESTLE:
A product mix is the set of all products and items, a particular seller offers
for sale. A product mix consists of various product lines. A company‟s
product mix has a certain width, length, depth and consistency.
Nestle is a well-known company all over the world and Pakistan. The
company basically deals in food products as their logo says “Good Food,
Good Life”.
 The width of a product mix refers to how many different product lines the
company carries.
 The length of a product mix refers to the total number of items in the mix.
 The depth of a product mix refers to how many variants are offered of
each product in the line.
NESTLÉ’S MAJOR PRODUCTS LINES:
 MILK PRODUCTS :-
 Nestle Milkpak UHT Milk
 Milkpak Butter
 Milkpak UHT Cream
 Milkpak Desi Ghee
 Nestle Everyday
 Nestle Nido
 CHOCOLATE DRINKS :-
 Milo power.

 Milo RTD.
 COFFEE:-
 Nescafe Classic
 FRUIT DRINKS:-
 Frost
 Nestle Orange Juice
 DIETETIC & INFANT PRODUCTS:-
 Lactogen
 Cereals
 Nestle Rice
 Nestle Wheat
 Neslac

 CULINARY PRODUCTS:-
 Maggi Noodles
 Maggi Vegetable Multigrainz Noodles
 Maggi 2-Minute Noodles
 Maggi Vegetable Atta Noodles
 Maggi Cuppa Mania
 Maggi Cold Sauces
 CONFECTIONERY:-
 Nestle Milkpak

 Polo Mint
 Kitkat
 WATER:-
 Nestle Pure Life
4.2 BRANDS OF NESTLE:
Nestlé offers quality culinary and beverage products through a portfolio of
brands operators and consumers count on for great taste, consistency, and
convenience.
Major Brands of Nestle are as follows:
MINOR'S® HOT POCKETS®
CHEF-MATE® LEAN POCKETS®
STOUFFER'S® NESTLÉ® HOT COCOA

STOUFFER'S® LEAN CUISINE® MAGGI®
NESCAFÉ® NESTLÉ® TOLL HOUSE®
COFFEE-MATE® LIBBY'S®
NESTEA® NESTLÉ® CARNATION®
NESTLÉ® DESSERT INGREDIENTS TRIO®

NESCAFÉ® MILANO
4.3 PRODUCTS OFFERED BY MAGGI:
 MAGGI Vegetable Multigrains Noodles
 MAGGI 2-Minute Noodles
 MAGGI Vegetable Atta Noodles
 MAGGI Cuppa Mania
 MAGGI Healthy Soups
 Sanjeevni MAGGI Healthy Cup Soup
 MAGGI Sauces
 MAGGI Pichkoo

 MAGGI MAGIC Cubes
 MAGGI Bhuna Masala
 MAGGI Coconut Milk Powder
 MAGGI Pizza Mazza
 MAGGI Masala-ae-Magic
 MAGGI NUTRI-LICIOUS PAZZTA
MARKET SEGMENTATION, TARGETING AND
POSITIONING:

 Segmentation is the process of grouping people or
organizations within a market according to similar needs,
characteristics, or behaviours.
 Targeting is the actual selection of the segment you want to
serve the target market is the group of people or organizations
whose needs a product is specifically designed to satisfy
 Positioning is the use of marketing to enable people to form a
mental image of your product in their minds (relative to other
products)

5.1 BASES FOR SEGMENTING CONSUMER
MARKETS:
A. Geographic Segmentation:
Division of the market into different geographical units such as nations, cities,
states, regions, neighbourhoods etc,
 Region: South India, Western Region, North, East
 City: Class
 Rural, urban, semi urban areas
B. Demographic Segmentation:
The market is divided on the basis of variables such as age, family size, family
life cycle, gender, income, occupation, education, religion etc. Demographic
variables are easy to measure and are directly associated with customer.
C. Psychographic Segmentation:
Here buyers are divided into different groups on the basis of
psychological/personality traits, lifestyles or values.
 Lifestyle: Culture-oriented, sports oriented, outdoor oriented.
Classification is done on three parameters: AIO Activities, lifestyles or
values.
 Personality: Compulsive, gregarious, authoritarian, ambitious
D. Behavioural segmentation:
Buyers are divided on the basis of their knowledge of attitude toward, use of, or
response to a product. The behavioural variables are as follows:
 Usage rate: Light, Medium, Heavy
 Loyalty status: None, medium, strong, absolute
 Readiness stage: Unaware, aware, informed, desirous, intending to buy

 Attitude toward product: Enthusiastic, positive, indifferent, negative,
hostile
EVALUATING AND SELECTING MARKET
SEGMENTS:
Five patterns of target market selection that can be followed are:
 Single Segment Concentration: Concentrated Marketing where the
firms gain a can strong knowledge of segments needs and acquires a
strong market presence.
 Selective Specialization: A firm selects a number of segments. Each
objectively attractive and appropriate, there may be little or no synergy
between the segment.
 Product Specialization: The firm makes a certain product that it sells to
several different market segments.
 Market Specialization: The firm concentrates on serving many needs of
a particular customer.
 Full Market Coverage: The firm attempts to serve all customer groups
with all products they may need.
5.2 TARGET SEGMENT OF MAGGI NOODLES:
Maggi 2 Minute Instant Noodles is already associated with convenience and
taste and is currently accepted as a valid filling snack between meals. Maggi
will continue to leverage its brand equity and target the following segments for
this product.
 Children and Teenagers’: This is a large segment and is Maggi‟s
stronghold. The age group between 4 and 14 years has largely similar
tastes and is traditionally targeted by Maggi. These segments perceive
Maggi instant noodles as a welcome change in taste from the regular
Indian fare and they are fascinated by the curly shaped noodles. For
these segments innovative products also have novelty value, however,
certain dominant preferences emerge. Realizing this early, Maggi
shifted focus from the lady of the house to the end consumer i.e.

children themselves ending up as the market leader of the instant
noodles segment. Early buy in of this segment will help Maggi to sell
in other segments in future.
 Studying Age: The studying age segment though not traditionally
targeted specifically has been devouring Maggi 2 minute noodles. The
proposition of convenience of cooking as well as that of a tasty filling
snack attracts this segment which due to erratic schedules keeps
missing their regular meals.
 Office Goers and working women: The Company also targeted this
segment people because they were the one who needs refreshment
time to time because of hectic schedule and with would take their
minimal time. So by keeping this aspect into consideration, the
company introduce the Cuppa mania, which is a type of noodle which
takes less time to cook and satisfy the hunger as well.
 Health Conscious People: The Company is also focusing on the
heath aspect. They introduce Veg atta noodle for health conscious
people. So they also launch Health Awareness campaign to educate
consumers about the benefits of health food. They also sponsor health
camps, publish health information and build awareness among the
masses.
5.3 POSITIONING OF MAGGI:
Maggi 2 Minute Noodles will continue with its current positioning of
convenience and as a “fast to cook, good to eat” snack as this seems to be
working well.
To prevent Top Ramen, the main competitor, from eating into its market share
some product innovation is required as otherwise Maggi may get stereotyped as
an unexciting product. Top Ramen is following a cost differentiation technique.
To deal with this Maggi has to position itself as a differentiated product. The
market is very sensitive to taste and rejects any flavour it dislikes with Maggi

having learnt it the hard way, thus the product cannot be greatly differentiated
with on basis of taste.
On the other hand Maggi has to deal with the negative perception of Maggi has
of being unhealthy in an increasingly health conscious market, a major threat in
the current scenario.
Both these problems can be tackled by positioning Maggi as a snack with
nutritional value. The recent launch of “Veg Atta Noodles” and “Dal Atta
Noodles” with the promise of good nutritional value ventures in this area.
6.FOUR P’S OF MARKETING MIX:
Marketing Mix
A mixture of several ideas and plans followed by a marketing representative to
promote a particular product or brand is called marketing mix.
The marketer‟s task is to device marketing activities and assembles fully
integrated marketing programs to create, communicate, and deliver value for
consumers. Marketing activities come in all forms. McCarthy classified these
activities as marketing mix tools of four broad kinds, which he called the four
Ps of marketing; product, price, place and promotion.
ELEMENTS OF MARKETING MIX:

6.1 PRODUCT:
Definition:
A product is anything that can be offered to the market to satisfy a want or need,
including physical goods, services, experiences, events, persons, places,
properties, organizations, information and ideas.
Maggi noodles Products In India:
Nestle unleashed brand maggi in India Almost 25 years ago in 1983 with launch
of its traditional 2 minutes noodles in its masala, tomato and chicken flavours,
followed by its curry flavour some years down the line.
Maggi was launched in India at the time when instant noodle was not that well
known a category.
When nestle India launched maggi in country, it used the tagline, „fast to cook
and good to eat‟, to not only promote the product‟ but also to educate the ever
growing aspirant consumer about the advantages of using it.
Products of Maggi Noodles:
A. MAGGI-2 minute noodles
B.MAGGI Vegetable atta Noodles
C.MAGGI Cuppa Mania
D. MAGGI Vegetable Multigrainz Noodle
MAGGI 2-MINUTE Noodles is one of the largest & most loved snack food
brands that define the Instant Noodles category in India. We‟ve recently
launched two new flavors in the short space of two months – Thrillin Curry &
Tricky Tomato Noodles. Blending Emotions with ingredients, the two new
flavors deliver strongly on “Taste Bhi Health Bhi”. It is now available in 5
delectable flavours: Masala, Chicken, Tricky Tomato, Thrillin Curry &
Romantic Capsica.

An offering that exemplifies „taste bhi health bhi‟, MAGGI vegetable atta
noodles is tasty because it is loaded with everyone‟s favourites MAGGI
„masala‟ and healthy because it now has more real vegetables and is packed
with the power of fibre. 85g of maggi vegetable atta noodles provides dietary
fibre equal to 3 prepared ratios, 20g each.
MAGGI, the pioneer and creator of „Taste Bhi Health BHi‟ has introduced
another great testing and healthy variant in its popular range of MAGGI
Noodles.
MAGGI Vegetable Multigrainz Noodle is made with Ragi, Corn, Jowar and
Wheat. It offers the consumer multi-„gun‟ as it is a source of Protein, Calcium
and Fibre and has added vegetables. It also provides the spicy test to their
customers. The inspiration for the product comes from the growing consumer

preference for a healthier lifestyle and the deep understanding that magi has
developed about Indian food habits and culture.
Since in today‟s fast-paced busy life, multitasking is a reality, you need
something that fits with your rushed lifestyle – a product which is tasty and
healthy, is convenient to prepare and eat and also satiates your hunger.
Maggi cuppa mania is a combination of all the above. In an easy to carry on-
the-go cup format, MAGGI cuppa mania comes in two mouth watering variants
– masala yo! And chilly chow yo!
It is packed with real vegetables and the goodness of calcium, just add garam
paani to the noodles and voila! A cupful of delicious MAGGI cuppa mania is
ready for you to eat.

6.2 PRICE
Introduction:
Price of the company‟s product is considered as one of the 4 p‟s of marketing. It
is the most important aspect for any company in terms of decision making as it
directly affects the sales and profit of the company.
These are the prices which are set by the company for the different flavours of
MAGGI Noodles.
MAGGI 2 Minute Noodles Pack Size (gm) Price (Rs)
Masala 50 6
Masala 100 12
Masala 200 24
Masala 400 40
Masala 600 54
Masala 800 72
Chicken 100 10
Curry 100 10
Tomato 100 10
Vegetable Atta Noodles 100 13
Vegetable Atta Noodles 400 50
As we talk about maggi, it is very popular now a day in all over the world and
its main customers are children and youngsters. As we know that MAGGI
Noodles price is not very high, but there are so many competitors in the market
so company can not set price different from their competitors. Currently
company is having the tough competition with Sun feast Yuppie Noodles and
Foodles. One advantage of the company is that noodle‟s packets are available
in different size comparing it with the brand called Top Ramen.

6.3 PLACE
Place refers to the location where the products are available and can be sold or
purchased. Buyers can purchase products either from physical markets or from
virtual markets. In a physical market, buyers and sellers can physically meet and
interact with each other whereas in a virtual market buyers and sellers meet
through internet. Thus with the ease and options through which you make your
product or service available to your customers will have an effect on your sales
volumes.
Physical Distribution of Maggi noodles:
To keep up with the growing trends in the Noodles sector, an intensive dealer-
distributor network is desired. Maggi has a well established distribution
network.
Maggi Distribution Network -
Maggi Factory
Factory Warehouse
Agent
Distributors
Wholesalers
Direct Retailers
End Consumers

Thus from the chart it can be said that the distribution network is well spread
almost everywhere in India, as it is easily available in all local stores, retail store
etc.
But in order to strengthen the distribution, NIL should expand its market to
Rural India with products targeted to the market. Thus this can be one of the
way by which they can increase its volume of sales. So major focus should be
done to this market as well.
6.4 PROMOTION
Promotion refers to the various strategies and ideas implemented by the
marketers to make the end - users aware of their brand. Promotion includes
various techniques employed to promote and make a brand popular amongst the
masses.
Promotion can be through any of the following ways:
 Advertising
Print media, Television, radio are effective ways to entice customers and
make them aware of the brand‟s existence.
Billboards, hoardings, banners installed intelligently at strategic locations like
heavy traffic areas, crossings, railway stations, bus stands attract the passing
individuals towards a particular brand.
Taglines also increase the recall value of the brand amongst the customers.
 Word of mouth
One satisfied customer brings ten more customers along with him whereas
one dissatisfied customer takes away ten more customers. That‟s the
importance of word of mouth. Positive word of mouth goes a long way in
promoting brands amongst the customers.

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.
 Print Ads
Maggi does not focus heavily on print media during its launch since its initial
target audience was mothers and kids. But later on some advertisements in the
print media were used to highlight the convenience factor of Maggi.
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 Events and Experiences
Hold the Online Maggie Recipe Challenge, wherein innovative recipes with
Maggi Noodles as a base are invited. Winning entries are compiled into an e-
cookbook which is published online.
 Sales promotion
The company also adopted sales promotion activity in order to achieve
following mentioned objectives.
 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
 Various Tools used
 Exchange schemes
 Price-off offer
 Coupons
 Scratch and win offer
 Money Back offer
Several initiatives were also taken by Maggi Noodles or Retailers sales
promotion. This can be as follows
 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.

Public relation
 The Maggi Club - the children under 14 were invited by press
advertisements and distribution of leaflets to become a member of
maggi club by sending logos cut from 5 empty maggi wrappers.
Maggi projected it as “maggi clubbers are fun lovers” and intended to
use it as reference group.
 Benefits offered to maggi-clubbers are various games like Snap safari
game, Cap and mask sets, travel India game, Disney today comic. To
obtain each gift the member has to send 5 wrappers as purchase
proof.
 Some special privileges were given to regular members time to time.
 The company also Organized Maggi school quizzes and sketching.
RESULTS OF PUBLIC RELATION ACTIVITY:
 Getting closer to regular customer.
 Boosted the sales.
 Making valuable direct marketing database.
 Recently, again, they have started Maggi fan club. This time it is
operating online and they are providing user name and password.

Displays

CHAPTER 3
THEORETICAL BACKGROUND OF THE STUDY
In general, there are three aspects to the strategy of firms, regardless of the level
of the strategy: content, formulation process, and implementation. Strategy
content (what the strategy is) refers to the specific relationships, offerings,
timing, and pattern of resource deployment planned by a business in its quest
for competitive advantage (e.g., generic strategy of cost leadership versus
differentiation; push versus pull strategy). Strategy formulation process (how
the strategy is arrived at) refers to the activities that a business engages in for
determining the strategy content (e.g., market opportunity analysis, competitor
analysis, decision-making styles). Strategy implementation (how the strategy is
Carried out) refers to the actions initiated within the organization and in its
relationships with external constituencies to realize the strategy (e.g.,
organization structure, coordination mechanisms, control systems).
The body of marketing literature termed as strategic market planning primarily
focuses on the content of strategy and process of strategy formulation at the
business unit level and the corporate level, and the role of marketing in these
spheres of organizational activity.
Firms initiate strategic actions to achieve competitive advantage. However,
these actions are shaped, and their outcomes influenced, by the external
environment and internal environment of the firms. Institutional theory suggests
that the actions of firms and the outcomes of these actions are influenced by the

knowledge systems, beliefs, and rules that characterise the context of the
organization.
 The firm is embedded in a general environment comprising (a) the
institutions that lay the guidelines to shape the behavior of firms and (b)
macro-societal factors such as the prevailing culture.
 The firm is embedded in an industry environment that comprises the
actors within an industry such as suppliers, customers, competitors, and
channel partners. The nature of the relationships among these industry
stakeholders influences the actions that a firm can initiate in pursuit of
competitive advantage.
 The firm has an internal environment that comprises its unique sets of
skills and resources; collective beliefs about the market, competition, and
industry (e.g shared mental models; and culture.
IMPORTANT THEORIES IN MARKETING STRATEGY:
 Game Theory: Game-theoretic models assume that firms are (hyper)
rational utility maximizers, where rationality implies that they strive to
achieve the most preferred of outcomes subject to the constraint that their
rivals also behave in a similar fashion (Zagare1984). In effect, game
theoretic models assume intelligent firms that can put themselves into the
"shoes" of their rivals and reason from their perspective.
 Signaling: Competitive signals are "announcements or previews of
potential actions intended to convey information or to gain information
from competitors". Competitive behavior is often influenced by signals

sent by competitors. Signaling could also place the firm that sends the
signal at a disadvantage.
 Innovation: Innovation and R&D for the long-term profitability of the
firm is viewed as a process of "creative destruction" (through innovation
that changes the very nature of competitive advantage in the market)
rather than as a condition leading to equilibrium. This argument is
supported by the "Austrian" school of strategy (Jacobson 1992), which
suggests that the business environment is inherently dynamic and
therefore characterized by uncertainty and disequilibrium.
Product Quality:
The economic view of quality is "any aspect other than price that influences the
demand curve of a product". Combining these two notions, quality can be
construed as any non-price aspect of a product that signifies its superiority and
causes a shift in its demand curve. Ideally, a business would want to sustain a
higher price as well as a higher market share but these two objectives may not
always be compatible. That is, if the business were to follow a niching strategy
by offering a high quality product at a high price targeted at a small market
niche, it effectively excludes itself from the contest for market share dominance
in the broader market.
The ability of a business to charge higher prices for higher quality is contingent
on the ease with which consumers can determine the quality of the product.
When quality is uncertain, consumers tend to use price as an indicator of
quality. This suggests a bidirectional relationship between quality and price, in
which perceived quality positively influences price under conditions of greater
information availability, and price positively influences perceived quality under
conditions of lower information availability.

Market Share:
The structure-conduct-performance model posits a positive relationship between
industry concentration and profitability. Evidence also suggests that the
relationship between market share and profitability is robust across different
definitions of market share, different sampling frames, and controls for
accounting method variation.
The quality explanation. In markets beset by uncertainty and imperfect
information about product performance, the high market share of a brand acts
as a signal of superior quality to consumers. In such markets, consumers are
likely to have greater confidence in high market share brands. This enables
high market share brands to command a price premium over lower market
share brands and thereby enhance their profitability.
The market power explanation. Businesses with a high market share, by
exercising their market power-the ability to command a price premium, lower
costs by negotiating for more favorable terms (than their competitors are able
to) with vendors and marketing intermediaries, and obtaining favorable shelf
placements from retailers enhance their profitability
market share lead to lower costs and thereby enable a business with a high
market share to earn higher profits than its competitors with a low market
share.
-factor explanation. A set of third set of factors (unobservables such
as luck, uncertainty, or managerial insight) may play a crucial role in helping a
business achieve a high market share as well as superior performance.

CHAPTER 4
RESEARCH METHODOLOGY

CHAPTER 4
RESEARCH METHODOLOGY
Sources of Data Collection:
Data are facts and other relevant materials, past and present which serves as the
basis for study and analysis. The data serves the basis for analysis without
analyses of actual facts. Inferences based on imagination or guess work cannot
provide correct answer to research question. The relevance, adequacy and
reliability of data determine the quality of the findings of the study.
For the purpose of the present study data have been collected from the sources
viz., primary and secondary sources.
Primary data
Secondary data
Primary Data: It is the data gathered and assembled specifically for the
project. Primary data is collected through discussions with retailers and
information extracted out of them through questionnaire and personal interview.
The primary data were derived from the answers retailers gave in the structured
Questionnaire prepared by the researcher. A personal interview was conducted
with the help of a Questionnaire. The retailers were asked to give their frank
opinion regarding the concerned matter and retailers have given valuable
information.
The various methods of primary data collection which is used in this study
are:
Personal or Face to Face method

Questionnaire Method
Observation Method
Secondary Data: The data collected for theoretical study from various books
on subjects, internet and companies documents. Secondary data is any data,
which have been gathered earlier for some other purpose. Data that have been
previously collected for some project other than the one at hand. Among the
above mentioned types of data was used for the study and analysis of the
Objective of this project, also the secondary to data proved to be helping hand
in framing up the industry scenario and also the relevant topics in the entire
project report. For collecting secondary data researcher used internet,
newspapers and Handouts.
Sampling Plan:
Sampling Frame: Authorized retailers and consumers of Nestle Maggi.
Sample Size: 50
Sampling Method: Non probability and probability sampling.
Tools and Techniques:
Data collection was collected through Questionnaire. Information was collected
through discussion with retailers. Analysis was made using statistical technique
like percentage method. Theoretical part of the study was extracted from
various selected books.
Primary data in the present research plays a very vital role, conclusion and
recommendation in this research are completely based on primary data analysis
and interpretation. The primary data collected from the retailers has been
classified and tabulated by using statistical tools. Analysis is purely based on
classified and tabulated data.

The analyzed data have been represented diagrammatically wherever required.
Bar charts, data classification, tabulation, analysis and interpretation have been
followed by summary of findings.
The statistical tool used is,
Percentage method: The percentage is used for making comparison between
two or more series of data. It is used to classify the opinions of the respondents
for different factors.
It is calculated as,
Percentage of respondent = (No. of respondents / Total number of
respondent)*50

CHAPTER 5
DATA ANALYSIS AND INTERPRETATION

CHAPTER 5
DATA ANALYSIS AND INTERPRETATION
TABLE 01: Showing Respondents based on Gender.
Sex No. of
respondents
Percentage
Male 29 58%
Female 21 42%
Total 50 100%
Interpretation:
From the above table and graph it is clear that out of 50(100%)
respondents 29(58%) respondents are male and 21(42%)
respondents are female. The majority of respondents are male
i.e.58%.

TABLE-02: Showing Respondents based on Marital Status.
Marital Status No. of
Respondents
Percentage
Married 30 60%
Unmarried 20 40%
Total 50 100%
Interpretation:
The table and graph showing that 60% respondents are married and
40% respondents are unmarried. The majority of respondents is from
married respondents i,e.60%.

TABLE-03: Showing Respondents based on Age.
Age No. of
Respondents
Percentage
Below 20 years 8 16%
20 to 30 years 18 36%
31 to 40 years 17 34%
Above 40 years 7 14%
Total 50 100%
Interpretation:
The above table and graph showing that 14% respondents are below
20 years, 34% respondents are 20 to 30 years, 36% respondents are
31 to 40 years and 16% respondents are above 40 years. The
majority of age group is from 20 to 30 years.i,e.36%.

TABLE-04: Showing Respondents based on Occupational Status.
Occupational
Status
No. of
Respondents
Percentage
Student 12 24%
House wife 7 14%
Business 17 34%
Others
(specify)……..
14 28%
Total 50 100%
Interpretation:
The table and graph showing that students are 24%, House wife
are 14%, Business man are 34% and others are 28%. The majority in
the occupation is from business man. i.e., 34%.

TABLE-05: Table showing product availability of nestle magi
Opinion No. of Respondents Percentage
Excellent 46 92%
Good 2 4%
Average 2 4%
Poor 1 2%
Total 50 100%
Graph showing product availability of nestle maggi
0
5
10
15
20
25
30
E X C E L L E N T
G O O D
A V E R A G E
P O O R
46
2
2
1
Interpretation:
The table shows the availability of nestle magi to all the respondents. 92% of
the respondents graded it as excellent, 4% as good, 4% as average, 2% of the
following respondents graded it as poor.

TABLE-06: Table Showing grade presented by respondents for
Advertisement and tv slogans
Opinion No. of Respondents Percentage
Excellent 5 10%
Good 35 70%
Average 10 20%
Poor 0 0%
Total 50 100%
Graph showing grade presented by respondents for Advertisement and tv slogans
0 5 10 15 20 25 30 35
Excellent
Good
Average
Poor
Interpretation:
10% respondents graded advertisement slogan as Excellent while 70% graded Good. 20% of the
respondents graded it Average while none of the respondents gave it Poor.

TABLE-07: Select a reason for making purchase of Nestle products.
Reasons No. of
Respondents
Percentage
Discount 6 12%
Quality 32 64%
Service 6 12%
Proximity 6 12%
Total 50 100%
Interpretation:
The above table and graph showing that 12% of respondents select
a reason like discount, service and quality for making purchase in
their preferred store. The majority of respondents i,e.64% will select
a reason quality for making purchase in preferred store.

TABLE-08: Retailers and customers always look for offers or
schemes?
Scale No. of
Respondents
Percentage
Yes 43 86%
No 7 14%
Total 50 100%
Interpretation:
The table and graph showing that 86% respondents say YES. Which
means giving offerings is a happy thing for them.

CHAPTER 6
FINDINGS CONCLUSIONS AND SUGGESTIONS

CHAPTER 6
FINDINGS CONCLUSIONS AND SUGGESTIONS
SUMMARY OF FINDINGS
1. It clear says that 88% respondents use NESTLE Maggi.
2. About 70% of respondents know about maggi through its tv ads and slogans.
3. Majority of respondents prefer to buy NESTLE Maggi at retailers.
4. About 75% of respondents prefer to buy the maggi products because of the
taste.
5. Majority of respondents agreed that product quality of NESTLE is good.
6. It is clear that 88% of respondents say that product quality of NESTLE
Maggi will encourage selling more products.
7.It is clear that brand Nestle is remembered more as a Maggi associated
product than sauce or snacks.
8. Majority of respondents says that the prices allocated Nestle maggi will make
you to go for more products.
9. About 76% of the respondents the changing in current price will increases the
sales of Nestle Maggi.
10. Most of the respondents say that Nestle Maggi deliver products in right in
time.
11. About 92% of the customers say that magi delivery of product right in time,
will increase the sales
12. Most of the customers say that present promotional strategies of Nestle are
aggressive and satisfying, and will help to increase the sales.

13. About 52% respondents says that the offers given by the maggi to retailers
are worthy.
14. About 42% respondents says that aggressiveness of Maggi‟s promotional
are aggressive. Majority of respondents says that the company can increase in
their sales by customizing their promotional strategies to each allotted market.
15. About 70% 0f respondent says that the current promotional strategies of the
company are effective to increase the sales of the company.
SUGGESTIONS:
1. Company should observe and understand strategy of competitor.
2. The company has to in implement more and more aggressive marketing
strategies to dominate.
3. The maggi still needs to put an effort to gain the trust back.
4. The respondents suggest that company must response to the complaints
immediately.
5. The company should go to find various parameters of marketing strategies to
increase sales.
6. The respondents have suggested that company should go for increase the
ranges of product available.
7. The company should concentrate on adversitments in Television and print
media.

CONCLUSION:
From the survey I came to know that Maggi though has been able to
differentiate itself from other Noodles, Maggi Being taken as generic to
Noodles is hampering other extended product category.
Competitors have high grounds to capture the market differentiating then from
being Maggi. It makes others possible product category vulnerable if lunched
under Maggi.
So to avoid proliferation of brand and introduce new products to capture
opportunities in other snacks and ready to eat product category NIL has to
introduce new branding strategy. By doing so, NIL could avoid the draw backs
associated with the Maggi brand. It could position new brand in competition
with other competitor‟s brand where there is no fit of product with the Maggi
brand.

BIBLIOGRAPHY:
Text books
1.“Marketing Management”, A South Asian Perspective, 13th edition, Philip
Kotler, Kevin lane Keller., Abraham Koshy., MithileshwarJha.
2. Industrial marketing management by Govindrajan M Vikas publishing house
pvt ltd.
3.Çiğdem Karakaya, BertanBadur and Can Aytekin, “Analyzing the
Effectiveness of
Marketing Strategies in the Presence of Word of Mouth” Journal of Marketing
Research
and Case Studies.Vol. 2011 , Article ID 421059,
 http://www.nestle.in/brands/pdca/Pages/MAGGICUPPAMANIA.aspx
 http://virtualaccuracy.com/2007/10/definition-of-marketing-mix-product-price-place-
promotion/
 http://www.managementstudyguide.com/marketing-mix.htm
 http://www.maggi.in/maggi_multigrainz_noodles.aspx

ANNEXURE
QUESTIONNAIRE
Respected Sir/ Madam,
I am Mr. SAGAR K V, student of final year BBM in PESIAMS, Shivamogga. As a
part of my academic study I have undertaken a project report on “A Study on Effective
Marketing Strategy of Nestle MAGGI” hereby request you to kindly spare a few moments
of your valuable time in responding to the questionnaire. The information provided by you
will be used strictly for academic purposes only.
Thanking you.
Yours sincerely,
Sagar
Name : __________________________________________
Address : __________________________________________
__________________________________________
Contact Number: ______________________________________
1. Gender
(a) Male (b) Female
2. Marital status
(a) Married (b) Unmarried
3. Age
(a) Below 20 years (b) 20 to 30 years
(c) 31 to 40 years (d) Above 40 years
4. Occupational Status
(a) Student (b) House wife

(c) Business (d) others (specify)……………………
5. Are you a consumer of Maggi?
(a)Yes (b)No
6. Who influences you in decision?
(a) Family (b) Friends
(c) Advertisements (d) Self
7 What comes first when you hear the word Maggi?
(a)Noodles (b)soss
(c)snacks (d)None of these
8. Overall, how would you rate the product availability?
(a) Very good (b) Good
(c) Average (d) Bad
(e) Very bad
9. Select a reason for making purchase of Nestle brand products?
(a) Discount (b) Quality
(c) Service (d) Proximity
10. Mention the frequency of purchase for the following Nestle magi product?
Serial.
No.
Merchandise Always Often Sometimes Not at all
1 NOODLES
2 SNACKS
3 SAUCE
4 READY TO
EAT
11. Do you perceive maggi noodles as a healthy or safe product?
(a) Yes (b) No

12.what is the brand that comes to your mind when you think of noodles?
(a)Nestle Maggi (b) Top Ramen
(c)Surya Noodles (d) Anil
13. Which factor do you normally consider while purchasing a Nestle product?
(a) Brand image (b) Quality
(c) Price (d) Others
TO RETAILER,,,,,,
14. Do you look for various schemes in the MAGGI?
 Yes
 No
If yes, what type of scheme?
(a) Coupons (b) Price off
(c) Bundling offer (d) Others
15. Would you like to switch your brand preference if you get some promotional offer with
another brand?
 Yes
 No
If yes, give reason for the same?
(a) Cost (b) Quality
(c) Satisfaction (d) Others
16. Does the advertising play any role towards brand preference?
 Yes
 No

17. If yes, which media influences your brand?
(a) Television (b) Newspaper
(c) Pamphlets (d) Word of mouth
18. Are you happy with our product design, labelling and packaging?
(a) Yes (b) No
19. In what way advertisement has influenced you?
(a) Better recall (b) Positive impression
(c) Information (d) Better exposure
20. State suggestion, if any ____________________________________________________
Thank you for spending your precious time in filling this form. Have a nice day.
Date:
Place: Signature

Q1. Name of the respondent:
Q2. Age:
Q3.
Q1. Are you a consumer of Maggi?
a.Yes b.No

Analysis: The survey suggested that out of 60 respondents, 50 are consumers of magi
products. Maggi is quite favourite with the different types of consumers in the market.
Further Questionnaires were conducted only to 50 positive respondents,
Q2. What comes first when you hear the word Maggi?
a.Noodles
b.soss
c.snacks
d.Nono of these
Analysis: The survey suggested that 46 out of 50 positive respondents associated maggi with
noodles,3 for soss and 1 for snacks. People are familiar with Maggi as a brand for noodles in majority
Q3. What actually made you remember notice the Maggi as a noodle?
a.brand ambassador
b.T.V advertisement
c.slogan
d.Word of mouth
Analysis: the majority of the users were almost impressed by both t v ads and slogan of this product.
The publicity share is in 1:5:4:1 ratio respectively
Q4. How do you perceive Maggi Noodles?
a.Good for health
b. ready to eat
c. Junk food
d. time pass snack
Analysis: the consumers perceive maggi products as ready to eat since its slogan itself suggests „bas
do minute‟
Q5. Which maggi produts in noodles category do you buy regularly?
a. Maggi masala
b. Maggi Vegetable atta noodles
c. Maggi dal atta noodles
d. Maggi rice noodles mania
Analysis:The survey suggests that most of the consumers regularly buy Maggi masala noodles
while only a few have a share in all other three categories.
Noodles Q6.what is the brand that comes to your mind when you think of noodles?
a. Nestle Maggi
b. Top Ramen
c. Surya Noodles
d. Anil
Analysis: This above information declares that Nestle maggi is ruling the market and others
are just an altrnatives.
Q7. Do you perceive maggi noodles as a healthy or safe product?
a. Yes

b. No
Analysis: 50 out of 50 respondents believe that maggi is safe which shows the marketers
effort in bringing back the product after 2015 set back.
Q8. Is it you who personally buy this product or someone else forces you to buy?
a. Myself
b. Family
Analysis: it‟s a equal share by the both. Teenagers buy on their own and others were forced by
their families.
Q9

“A Study on of Effective Marketing Strategy of Nestle MAGGI”

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