PROJECT REPORT

ON

NESTLE MAGGI

SUBMITTED TO: SUBMITTED BY:

PIMG MUNENDRA CHAUHAN

MBA (INT.)

6TH SEM
 DECLARATION BY THE CANDIDATE

I hereby declare that the Project Report on NESTLE MAGGI submitted by me to Prestige
Institute of Management, Gwalior in fulfillment of the requirement for the award of Masters of
Business Administration Integrated is a record of my original work carried out by me under the
guidance of PROF. SAIDEEP SHRIVASTAVA I, further declare that the work reported in this
report has not been submitted, and will not be submitted, either in part or in full, for the award of
any other degree or diploma of this University or to any other institute or university.

Date:

Place: MUNENDRA CHAUHAN

 CERTIFICATE FROM FACULTY GUIDE

This is to certify that MUNENDRA SINGH CHAUHAN Student of Masters of Business

Administration Integrated Program has prepared this Project Report on NESTLE MAGGI under
my guidance.

His performance during the project was excellent.

Date:
Place: PROF. SAIDEEP SHRIVASTAVA
 ACKNOWLEDGEMENT

It is privilege to express my gratitude & a sincere thanks to Prestige Institute of Management,

Gwalior for giving me an opportunity to prepare this project report on NESTLE MAGGI I am
also thankful to PROF. SAIDEEP SHRIVASTAVA, for her valuable guidance and support
throughout the process.

Date: - MUNENDRA
CHAUHAN

Place: - Gwalior MBA(Int.) 6th sem.

Table of Contents

S. No Topic Page No.

1 Introduction to the project 01

2 Objectives of the project 02

3 History of nestle 02

4 Nestle mission and vision statement analysis: 03-04

5 Macro environment and micro environment analysis: 04-06

6 Marketing mix 07-09

7 Marketing & promotional strategies 09-10

8 SWOT analysis: 10-11

9 Maggi in ban 11-13

10 strategies adopted by nestle: 14

11 Repositioning of Nestle 14

12 Conclusion 15

13 References 16
 INTRODUCTION TO THE COMPANY

The company targeted working women on the premise that Maggi noodles were fast to cook.
However, this approach failed as was evident from the fact that the sales of Maggi noodles were
not picking up despite heavy media advertising. To get to the root of the problem, NIL conducted
a research, which revealed that it was children who liked the taste of Maggi noodles and who
were the largest consumers of the product. After this, NIL shifted its focus from working women
and targeted children and their mothers through its marketing. The product was aggressively
promoted through several schemes like distribution of sample, free gifts, inside Kids games, gifts
on the return of empty packs, etc.

It advertised too much to convey the benefits of the product to the customers. Through
advertising, the Maggi was positioned as a fun food ‘for kids which mothers can easily cook. Its
taglines like Mummy, Bhookh lagi Hai ‘, Bas 2-Minute ‘and Fast to Cook Good to eat
‘effectively communicated message amongst the consumers to consume the Maggi Noodles
when they are feeling hungry. The several studies show that these ads are so popular that the
tagline Bas 2-Minute ‘sustained in the minds of the Indian consumers even several years after the
ads were taken off the TV. Its first product extension was Maggi instant soups launched in 1988.
Martial Rolland, chairman and managing director.

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HISTORY OF NESTLE:

MAGGI Malaysia is a Malaysia based company which mainly produce noodles, sauces,
seasonings, mixes and etc. In 1869, Julius Maggi created the MAGGI brand and the
MAGGI brand was actually originating from Switzerland. In that era of evolution, Julius
needed to invent an easy cooked and save time recipe for the working women. She got it
succes s. MAGGI brand is succes sfully capturing the favoritism of the market
in Switzerland. While since 1947, MAGGI brand was acquired by Nestle Company. Then,
the MAGGI brand started to build up relationship and trust among their customer and it is being
passed around the world especially Asia countries.

PORTFOLIOS
  MAGGI

In 1883 Julius Maggi had a vision: good-tasting and nutritious

food accessible to all. The MAGGI brand has grown to become
one of the Nestlé Group’s most popular Brands.
MAGGI is primarily a culinary brand whose heritage is in
bouillon, dehydrated soups and liquid seasoning. MAGGI is a
source of helpful products and solutions that allows you to be
appreciated as a provider of tasty food.
MAGGI in the Central and West Africa Region offers a range of
bouillon products, liquid seasonings and cold sauces. 

Bouillons

MAGGI Shrimp/Crevette/Crayfish derives its taste from natural

shrimp as well as other ingredients like a unique blend of spices
and iodized salt. MAGGI Shrimp is available in both cube and
tablet formats and can be used for all dishes especially seafood. 

MAGGI Chicken Tablet brings a festive taste to your dish. This

tablet contains chicken meat, a blend of spices including parsley
and iodized salt. Use MAGGI CHICKEN in a variety of dishes
including soups, stews and sauces or for boiling rice and
vegetables.

MAGGI Onion Epic is great for steaming meat or seasoning

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 meat and fish before grilling, boiling, frying or your preferred
method of cooking. MAGGI onion does not only contain onion
but other natural spices including aniseed and cloves as well
as iodized salt.

MAGGI Cube Regular/Tableted can be used as a base for

homemade soups, stews, and sauces/gravies or for boiling rice,
vegetables, potatoes, etc.

MAGGI Mutton can be used for all mutton and meat dishes as

well as for both soups and stews.

MAGGI Kari Tablet offers more than the ordinary curry does.

Made from curry, caramel, spices and iodized salt. It offers you
an added value of curry mixed with other spices. It is good for all
dishes.

MAGGI Safsafal is made up of onion, garlic, aromatic plants and

iodized salt. Food has never tasted better than with MAGGI
Safsafal.

MAGGI Golden Beef gives your beef that distinctive beefy taste

and aroma. MAGGI Golden Beef with its ingredients such as
iodized salt, parsley, beef flavor, your beef tastes like beef.

Powdered bouillons

MAGGI Mix’py can be used to spice up all your meats and

dishes. There are other variants: MAGGI Tro’Bon Dore,
MAGGI Tro’Bon Meune Marine Moutarde, MAGGI Tro’Bon
Meune Rossi Tomate, MAGGI Mix’py Classic and MAGGI
Mix’py Ginger & Garlic. Liquid Seasoning

MAGGI Arome can be used during cooking, and as a taste

enhancer while eating. It can be when grilling for those special
  days.

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SWOT ANAYSIS:

STRENGTH:

 Established Family Brand.

 Strong Global Corporate Brand(NIL).
 Specialization in food processing category marketing and distribution in urban market.
 Nestle symbolization of warm, family & shelter.
 Research and development division in India.
 New Noodles plant in Uttaranchal.

WEAKNESS:

 Generic brand to Noodles in India.

 Low rural market presences constraints.
 Uniform brand for all food category.
 Brand proliferation.

OPPURTUNITIES:
 Growing package and canned food market in India by15% annually.
 High brand awareness of Indian consumers.
 Other product category like Biscuits, Chips and ready to eat market still unexplored.
 Opportunities to be substitute to other snacks category of food products.

THREATS:

 Competitors with long history in product category Internationally like, Heinz sauce and
Ketchups of Heinz Indian, Top Ramen in Noodles and Knorr soups.
 Less entry barriers in the market segment for product category.
 Substitute product to product segment.

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OBJECTIVE OF ADVERTISING:

PURPOSE OF ADVERTISING

 To Understand the Marketing and Promotional Strategies adopted by Nestle Maggi

 To understand the brand performance of Maggi product.
 To understand Brand Imagery, Brand Quality perceived by customers, Brand Credibility,
consideration, superiority.
 Brand extension of Maggi in terms of product diversity.

MESSAGE TO BE DELIVERED FROM MAGGI

We have strict food safety and quality controls in place for all raw materials used to make
MAGGI Noodles. These include comprehensive testing to ensure that our products comply with
all applicable food safety laws and our own high standards of quality and safety before they
reach our consumers. We are aware of reports that tests by the local authorities have detected
MSG [Monosodium Glutamate] in a pack of MAGGI Noodles. The authorities are continuing
with their investigation and at the same time we have also submitted product samples to an
independent accredited laboratory and will share the results with the authorities. We do not add
MSG to MAGGI Noodles and our label declarations are as per local regulation. We use raw
materials in MAGGI Noodles which can contain naturally occurring Glutamate. It is important to
note that many agricultural commodities like Onion, Peas, Tomatoes, etc. contain glutamate.
This could be confused with commercially added MSG. Glutamate is safe to consume. We are
also aware of the reports of elevated levels of lead in a pack of MAGGI Noodles analyzed by the
authorities. We regularly monitor for lead as part of our stringent quality control processes,
including testing by accredited laboratories. These tests have consistently shown lead levels in
MAGGI Noodles to be within permissible limits. We have explained this to authorities while
they investigate the matter further.

RESEARCH :-

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MARKETING MIX

PRODUCTS OF
MAGGI:

 NOODLES.
 SOUPS.
 SAUCES.

 PASTA.

PRICE OF MAGGI:

 Considering the price points in the market for Maggi, it should continue to position itself
in the “snack” category itself, since few would be willing to accept it as a meal.
 The company is taking no chances and is extending its distribution reach to smaller towns
and cities. Maggi happens to be Nestlé’s most widely distributed brand in the country.

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 Through independent channels, it reaches those villages where the company has no
presence, according to Hedge. This is also the time that Maggi’s value-for-money pack
priced at Rs. 5 is expected to come handy. (The regular pack comes for Rs 10.)
 Affordable by all income groups.

PLACE(DISTRIBUTION);

 The distribution network is well spread.

 Easily available in all retail stores.
 Distribution channel – PRODUCER - DISTRIBUTOR - RETAILER – CONSUMER

PROMOTION OF MAGGI:

 They promote their product very effectively through television.

 They have applied the strategy of brand extension.
 They also sponsor various cookery shows to promote alternate usage of products.
 They also use strategy of free product samples to promote it.
 Less promoted as compared to Maggi.
 No particular celebrity endorsement.

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CONCLUSION:

The food processing business in India is at a nascent stage. Currently, only about 10% of the
output is processed and consumed in packaged form thus highlighting huge potential for
expansion and growth. Traditionally, Indians believe in consuming fresh stuff rather than
packaged or frozen, but the trend is changing and the new fast food generation is slowly
changing Riding on the success of noodles, Nestle India, tried to make extensions of the Maggi
brand to a number of products like, sauces, ketchups, pickles, soups, tastemakers and macaroni
in the mid-1990s. Unfortunately, the macaroni and pickles didn’t pick up as expected. The soups
and sauces did somewhat fine, gathering considerable sales volumes and have a satisfactory
presence even today. ‘Maggi Noodles’ itself faced a bit of difficulty with respect to ‘taste’, and
nearly lost its position in the minds of Indian consumers in the late 1990s. When Nestle changed
the formulation of its tastemaker, the ominous packet that came along with Maggi Noodles, a
major chunk of consumers were put-off and sales started dropping. Also, Maggi’s competitor
‘Top amen’ took advantage of the situation and started a parallel aggressive campaign to eat into
Maggi’s market share. But the company quickly realized this and went back into making the
original formula coupled with a free sampling campaign. This helped Maggi to win back its lost
consumers and pushed up its sales volumes Maggi The year 2008 saw India leading in
worldwide Maggi sales. The brand has grown to an estimated value of Rs 160-170 crore and
contributes at least 8–9% to Nestle India’s top line. All the same, some FMCG analysts feel that
the brand has not done much to expand the noodles category. Even after 25 years of its launch,
the size of the instant noodles market is yet quite small at Rs 300 crore. But yes, the parent
company, Nestle India Limited has certainly encouraged the brand to enter into other culinary
products.

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References
http://www.scribd.com/doc/19730142/MAGGI-2

http://www.scribd.com/doc/36716132/21954079-Maggi-Project-Final

http://www.scribd.com/doc/13487983/The-Maggi-Brand-in-India-Case-Analysis

http://en.wikipedia.org/wiki/Nestle

http://en.wikipedia.org/wiki/Maggi

http://en.wikipedia.org/wiki/Fast-moving_consumer_goods

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