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Analysis of Marketing Strategies of Nestle Maggi
Analysis of Marketing Strategies of Nestle Maggi
Analysis of Marketing Strategies of Nestle Maggi
ON
“ANALYSIS OF MARKETING STRATEGIES
OF NESTLE MAGGI”
Submitted in partial fulfilment of the requirement
For the award of the degree of
I would like to express my sincere, gratitude and regards to the Director Prof.
(Dr.) Bhagwan Jagwani, Head of the Department Dr. Shishir Gupta for their
constant inspiration, supervision and invaluable guidance and providing me the
infrastructural facilities like Library and Computer Laboratory, during the
preparation of the project.
With regards
Signature of Student
B.B.A IV Semester.
Nestlé Maggi is a globally recognized brand that has become synonymous with
instant noodles and culinary products. The brand has gained immense popularity
and a loyal customer base through its innovative marketing strategies. In this
study, we aim to analyse the marketing strategies employed by Nestlé Maggi to
understand the key factors contributing to its success and market dominance.
Marketing strategies play a crucial role in shaping the brand image, market
positioning, and customer perception of a product. Nestlé Maggi has consistently
evolved its marketing tactics to effectively target and engage its diverse consumer
base across various regions and cultures. By delving into the strategies
implemented by Nestlé Maggi, we can gain valuable insights into the company's
approach and the impact it has had on its market performance.
The findings of this analysis will contribute to the existing body of knowledge on
marketing strategies and provide valuable insights for marketers, scholars, and
business professionals. By exploring the success story of Nestlé Maggi, we can
derive lessons and best practices that can be applied to other brands operating in
the food and beverage industry.
INTRODUCTION OF NESTLE:
Nestlé S.A. is among the largest consumer packaged goods companies in the
world, founded and headquartered in Vevey, Switzerland. Nestlé originated in
a1905 merger of the Anglo-Swiss Milk Company, which was established in 1866
by brothers George Page and Charles Page, and the Farine Lactée Henri Nestlé
Company, which was founded in 1866 by Henri Nestlé, whose name meant "Little
Nest". The company grew significantly during the First World War and following
the Second World War, eventually expanding its offerings beyond its early
condensed milk and infant formula products. Today, the company operates in 86
countries around the world and employs nearly 283,000 people.
HISTORY OF NESTLE:
Nestlé, founded in 1866 by Henri Nestlé, has a rich history spanning over 150
years. Initially focusing on infant nutrition with the creation of the "Farine
Lactée" formula, the company expanded its product range and global presence
through strategic acquisitions and organic growth.
In the early 20th century, Nestlé ventured into new markets and introduced
Nescafé, a soluble coffee that quickly gained popularity worldwide. The
company's commitment to innovation continued with the development of other
iconic products, such as Nestea and Milo.
Throughout the latter half of the 20th century, Nestlé made significant
acquisitions to diversify its portfolio. Notable purchases included the Maggi
company in 1947, adding dehydrated soups and seasonings to its offerings, and
the acquisition of Carnation in 1984, expanding its presence in the dairy and
confectionery sectors.
In the 1990s and 2000s, Nestlé continued to expand its global footprint, entering
emerging markets and acquiring well-established brands. The company acquired
companies like San Pellegrino, Perrier, and Gerber, strengthening its presence in
the water and infant nutrition segments.
Major Players in this sector include Hindustan Unilever Ltd., ITC (Indian
Tobacco Company), Nestlé India, GCMMF (AMUL), Dabur India, Asian Paints
(India), Cadbury India, Britannia Industries, Procter & Gamble Hygiene and
Health Care, Marico Industries, Nirma, Coca-Cola, Pepsi and others. As per the
analysis by ASSOCHAM, Companies Hindustan Unilever Ltd , Dabur India
originates half of their sales from rural India. While Colgate Palmolive India and
Marico constitutes nearly 37% respectively, however Nestle India Ltd and GSK
Consumer drive 25 per cent of sales from rural India. A rapid urbanization,
increase in demands, presence of large number of young population, a large
number of opportunities is available in the FMCG sector. The Finance Minister
has proposed to introduce an integrated Goods and Service Tax by April
2010.This is an exceptionally good move because the growth of consumption,
production, and employment is directly proportionate to reduction in indirect
taxes which constitute no less than 35% of the total cost of consumer products -
the highest in Asia. The bottom line is that Indian market is changing rapidly and
is showing unprecedented consumer business opportunity
CHAPTER - 2
COMPANY AND ITS
MARKETING STRATEGIES
Product:
Nestlé Maggi offers a wide range of products, including instant noodles,
soups, sauces, seasonings, and ready-to-cook meal kits. The brand
emphasizes convenience, taste, and quick preparation time as key product
attributes. Nestlé Maggi constantly introduces new flavors and variants to
cater to different regional preferences and consumer tastes.
Price:
Place:
Promotion:
Nestlé Maggi employs various promotional strategies to create awareness,
build brand loyalty, and drive sales. They use a mix of traditional and
digital marketing channels, including television advertisements, print
media, social media campaigns, and influencer marketing. Nestlé Maggi
also engages in strategic partnerships and sponsorships to further promote
its brand and products.
CHAPTER – 3
SIGNIFICANCE OF THE STUDY
Target Market: Identify the specific target audience that Nestle Maggi
aims to reach with its marketing strategies. Analyse demographic,
psychographic, and behavioural characteristics of the target market to
understand how the company tailors its messaging and offerings to appeal
to this segment.
It is important to note that these hypotheses are speculative and would require
empirical research and data analysis to validate or refute them.
b) POPULATION / UNIVERSE:
The population/universe of analysis for the marketing strategies of Nestle Maggi
would typically consist of the target market or consumer base of the brand. This
includes individuals or households who are potential or existing consumers of
Nestle Maggi products.
By analysing the marketing strategies of Nestle Maggi within the context of these
specific consumer segments, researchers can gain insights into how the brand
tailors its strategies to effectively target and engage with different audience
groups.
c) SAMPLING UNIT:
The sampling unit is the general public, representing the target consumer base for
the brand.
d) SAMPLING SIZE:
Age-group 10 - 40
Age Group 11 - 20 21 - 30 31 - 40
Number of Respondents 52 31 17
e) DATA COLLECTION:
Primary Source: The primary data used in the report include the
questionnaire in which the consumer/customer data is collected regarding
their views towards Nestle Maggi.
Secondary Source: This will include data collection from various websites
and books. It also includes data from company and other referral sites and
source.
CHAPTER – 6
ANALYSIS AND FINDINGS
1. Gender of respondents
0%
30%
70%
Interpretation
From the above table it is clear that 70% respondents have Male and 30%
respondents have Female.
2. Age of respondents
60
50
40
30
20
10
0
11 - 20 21 - 30 21 - 40
Interpretation
From the above table it is clear that 52 of the respondents are aged between 11-
20 years, 31 respondents are aged between 21-30 and 17 of the respondents are
aged between 31-40.
3. Have you heard of Nestle Maggi?
4%
NO
Yes
96%
Interpretation
The above table and diagram shows that 96% respondents have heard of Nestle
Maggi and remaining 4% have not heard of Nestle Maggi.
4. What comes first in your mind when you hear the word MAGGI?
80
70
60
50
40
30
20
10
0
Fast food None of these Noodles Snacks
Interpretation
Out of 100 around 74 agreed that when they hear the word MAGGI first noodles
comes in their mind, 11% said fast food & other said snacks.
5. How did you become aware of Nestle Maggi?
70
60
50
40
30
20
10
0
In-store None Online Taste Television Word of mouth (blank)
promotions advertisements advertisements
Interpretation
50
45
40
35
30
25
20
15
10
0
Daily Weekly Monthly Occasionally Rarely
Interpretation
The above table and diagram shows that 8% consumer consume Daily Maggi,
50% consumer consume Weekly, 19% consumer consume Monthly and Rarely &
remaining 4% consumer consume Occasionally.
7. What factors influenced your decision to purchase Nestle Maggi products?
14%
1%
Brand reputation
For instant food
19% Product quality
Recommendations from others
65% Taste
1%
Interpretation
The above table and diagram shows that 65% of the respondents are influenced
by Taste, 14% are influenced by Brand reputation, 19% are influenced by Product
quality & remaining consumer are influenced by For instant food &
Recommendation from others.
8. How would you rate the packaging design of Nestle Maggi products?
4% 12%
Average
50% 34% Excellent
Good
Poor
Interpretation
The above table and diagram shows that 34% consumer agree packaging design
of Maggi is Excellent, 50% consumer says that Good, 12% consumer says that
Average & 4% consumer rate Poor.
9. How would you rate Nestle Maggi's pricing in comparison to similar
products in the market?
45
40
35
30
25
20
15
10
5
0
Cheaper More expensive Similar Slightly more
expensive
Interpretation
From the above table it is clear that 12% of the respondents are says pricing of
Maggi in comparison to its similar product is More expensive, 35% says Slightly
more expensive, 44% says Similar & 9% says Cheaper.
10. Have you ever visited Nestle Maggi's website or mobile application?
17%
33%
Yes
No, I have never visited
No, but I am aware of them
50%
Interpretation
The above table and diagram shows that 50% respondents never visited Maggi’s
Website or Mobile Application, 33% respondents never visited but aware of them
& 17% respondents visited Website or Application.
11.In your opinion, what sets Nestle Maggi apart from its competitors?
41
35
23
Interpretation
The above table and diagram shows that 41% respondents says Maggi apart from
its competitors because Brand reputation, 35% Price, 23% Variety of flavours &
1% Price.
12.What is the brand that comes to your mind when we say the word noodles?
15%
2%
2%
Maggi Noodles
Others
Patanjali Noodles
Yippee Noodles
81%
Interpretation
Out of 100 approx 81 % of people said when they talk about noodle Maggi comes
first in their mind & 15% said Yippee noodle comes in their mind & 2% said
Patanjali noodle comes in their mind & 2% said others brand.
13.Have you ever tried any new product launches by Nestle Maggi?
25%
Yes
19%
Interpretation
The above table and diagram shows that 56% respondents tried new product
launches by Nestle Maggi, 25% respondents have never tried but aware of them
& 19% never tried.
14.How do you think Nestle Maggi can improve its marketing strategies to
better meet customer needs and expectations?
14%
25% Enhance advertising and
promotional campaigns
13% Improve customer engagement
and feedback processes
Improve pricing and
affordability
Improve product innovation
and variety
48%
Interpretation
The above table and diagram shows that 48% respondents think Maggi can
improve pricing and affordability, 25% Improve product innovation and variety,
14% Enhance advertising and promotional campaigns & 13% respondents think
Maggi can Improve customer engagement and feedback processes.
15.What product would you associate with the tag line mentioned below?
OTHERS
0 5 10 15 20 25 30 35 40 45 50
Interpretation
The above table and diagram shows that 44% associates with the tag line 2minute
noodles/bas 2minute, 25% Fast to cook, good to eat, 23% Mummy bhook lagi hai
and 8% respondents associates with the others tag line.
16.With what product would you associate the brand Maggi?
9% 4%
27%
Ketchup
Masala
Noodles
Soup
60%
Interpretation
60% of consumer associate the noodle with brand Maggi, 4% consumer associate
the ketchup, 9% consumer associate with soup & 27% associate the masala with
brand Maggi.
17.Which Maggi products in noodles category do you regularly buy?
80
70
60
50
40
30
20
10
0
Maggi dal atta Maggi masala Maggi noodles Maggi vegetable
noodle atta noodle
Interpretation
70
60
50
40
30
20
10
0
Yes No
Interpretation
Out of 100%, 38% of consumers agreed that Maggi noodles is a healthy product
& 62% of consumers said that Maggi noodle is not a healthy product.
19.How do you perceive Maggi products?
9%
38%
Good to health
Junk food
32%
Ready to eat
Tasty/fun eating
21%
Interpretation
21% of people perceive the Maggi product ready to eat, 9% of people perceive
Good to health, 32% of people perceive it as junk food & 38% perceive it as
tasty/fun eating.
CHAPTER – 7
RESULTS & FINDINGS
SUGGESTIONS:
Foray into the other food products like chips, chocolates etc. under its sole
brand name Maggi as Maggi is a brand in itself which has been well
recognized by the masses.
Maggi should Focus on creating a product that do not need any cooking.
It should strengthen the distribution channel of the rural areas within 100km
of all the metros.
It should launch new advertisement campaign (TV, radio, print media
commercials) with a brand ambassador or mascot.
CONCLUSION:
BIBLIOGRAPHY
1. https://en.wikipedia.org/wiki/Nestle
2. https://iide.co/case-studies/marketing-strategy-of-maggi/
3. https://buildd.co/marketing/maggi-marketing-strategy
4. https://www.nestle.com/about/strategy
5. https://www.marketing91.com/marketing-mix-of-maggi/
COPY OF QUESTIONNAIRE
Yes
No
Q2. What comes first in your mind when you hear the word MAGGI?
Noodles
Fast Food
Snacks
None of these
Online advertisements
In-store promotions
Word of mouth
Television advertisements
Daily
Weekly
Monthly
Occasionally
Rarely
Q5. What factors influenced your decision to purchase Nestle Maggi products?
Taste
Brand reputation
Recommendations from others
Product quality
For instant food
Q6. How would you rate the packaging design of Nestle Maggi products?
Excellent
Good
Average
Poor
Q7. How would you rate Nestle Maggi's pricing in comparison to similar products
in the market?
Yes
No, but I am aware of them
No, I have never visited
Q8. In your opinion, what sets Nestle Maggi apart from its competitors?
Product quality
Variety of flavours/options
Price
Brand Reputation
Q9. What is the brand that comes to your mind when we say the word noodles?
Maggi Noodles
Patanjali Noodles
Yippee Noodles
Others
Q10. Have you ever tried any new product launches by Nestle Maggi?
Yes
No, but I am aware of them
No, I have never visited
Q11. How do you think Nestle Maggi can improve its marketing strategies to
better meet customer needs and expectations?
Q12. What product would you associate with the tag line mentioned below others
Q13. With what product would you associate the brand Maggi?
Noodles
Ketchup
Soup
Masala
Yes
No
Tasty/fun eating
Good to health
Ready to eat
Junk food