A project on research and methodology of maggi

Projectsformba.blogspot.com

A project on

Research and Methodology

Submitted to
University of Mumbai
In the partial fulfillment of BMS Degree

By the students of Class: SY BMS Div: A Semester :Fourth

Group Members

Studying at :

Rizvi College of Arts, Science, Commerce
Bandra (West), Mumbai 400050.

For the Academic Year 2009- 2010.

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ACKNOWLEDGEMENT.

We would like to thank our professor; ……………. who gave the
opportunity to make this project through which we have gained
valuable information on the topic “Maggi.”

We would also like to thank all my friends for helping and making
the project successful. These acknowledgements are one way
where we can actually thank the people who have been
instrumental in the making of this project. With their help the
project was done with ease. We would like to thank a lot of people
without whose co-operation and support working on this project
would not have been so pleasurable and interesting.



CERTIFICATE

I professor ……………… here by certify that ……………
…………………………………………. of SY.BMS. (Div – A)
of Rizvi College of Arts, Science, Commerce & Management has
completed a project on the information ”Maggi” in the academic
year 2009 – 2010.
The Information submitted is True & original to best of my
knowledge.

Signature of the principal Signature of Professor

Date :
Place :



DECLARATION
Our group:- ………………………………………………………….
…………………………………………of SY.BMS.(Div – A) hereby
declare that we have completed this project on “ Maggi” in the
academic year 2009 – 2010.
This information provided by us is true and original to the best of
our knowledge.



INDEX

Sr. No Particulars Pg. No
1 Introduction to Maggi 7
2 Brand Story 8
3 Various products of Maggi 9-10
4 Taste and preference of 11-12
consumers
5 Demography and 13
psychography of consumers
6 Market Share 14-15
7 SWOT analysis of Maggi 16
brand
8 Research methodology 17-18
9 Questionnaire 19-21
10 Analysis of questionnaire 22-25



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 home made 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 colour 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!



BRAND STORY
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 schemes offering
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
responisible 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.



VARIOUS PRODUCTS
The product mix of Maggi is divided into various categories defined below. The company
has launched various products under each category as mentioned below.

1. Noodles
• Maggi 2-Minute Noodle ( Masala , Chicken, Curry
and Tomato)
• Maggi Dal Atta Noodles ( Sambhar taste)
• Vegetable Atta Maggi Noodles
• Maggi Rice Noodles (Lemon Masala, Chilly Chow
and Shahi Pulao)
• Maggi Cuppa mania (Masala yo, Chilli chow yo)

2. Sauces
• Teekha masala
• Tomoto chatpat
• Imli khata mitha
• Tomato ketchup
• Hot and sweet
• Tomato pudina
• Ginger, Garlic & Coriander
• Maggi Oriental Chilli Garlic
• Ginger, Garlic & Coriander

3. Maggi Pichko

4. Soups Healthy
• Chef Style
- Cream Mushroom
- Sweet Sour Tomato Noodles
- Tangy Tomato Vegetables
• Home Style
- Creamy Chicken
- Mixed Vegetable
- Rich Tomato
• Chinese Style
- Chinese Hot Sour Chicken
- Chinese Sweet Corn Chicken
- Chinese Sweet Corn Vegetables
- Chinese Hot & Sour Vegetables



5.Maggi soup sanjivni
• Amla
• Badam
• Spinach
• Dal
• Tomato

6. Maggi bhuna masala
• Bhuna masala for gravy dishes
• Bhuna masala for vegetable dal

7.Maggi magic cubes
• Chicken
• Vegetarian masala



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 non-carbonated 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 consumers
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 had 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 was healthy . More importantly this
move addressed the concerns of Homemakers. The brand extended itself to multiple
segment 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 Pazzta. So far focussed 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.



DEMOGRAPHY AND PSYCHOGRAPHY OF
CONSUMERS

Demography:-

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.

Psychography:-

1) Attitude:- Consumers of maggi have a positive attitude towards the
product which makes it the leader in the market. Maggi dominates the market.

2) Lifestyle:- Lifestyle determines the way of living of people. It describes how a
consumer leads his life. Maggi products are consumed by all.



MARKET SHARE

Maggi's Market Share in Ketchup
Category Maggi
has a

45%
Maggi
55% Others

market share of 45% which is a high percentage. It dominates the market in the
ketchup segment.



Maggi's Market Share in Noodles
Category

20%

Maggi
Others

80%

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.

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.

STRENGTH WEAKNESS
Market leader in their segment Product are dependent on each
Strong brand loyal consumer base other
Wide range of distribution channel Not so much presence in rural
Product according to the need of market
Indian consumer
Innovative Product

SWOT
ANALYSIS

OPPORTUNITY THREAT
Increasing number of working youth Price war with competitors.
Product has been acceptable in youth Strong presence of regional
category competitors
Shift to rural market Consumers don’t perceive it as
Changing preference of consumer a “Healthy Product”
towards Chinese food and fast food.
Can foray into other food markets with
its strong Brand name

RESEARCH METHODOLOGY:-



OBJECTIVES OF QUESTIONNAIRE

 To understand the influence of Maggi as a brand on consumers mind set.

 Sources of Brand equity of Maggi like Brand awareness, Brand image, Brand
association, Brand recall.

 To understand the Brand performance of Maggi products.

 To understand Brand Imagery, Brand Quality perceived by customers, Brand
credibility, consideration, superiority and feelings.

 To know the medium of media through which they became aware of Maggi.

METHOLODOGY



The research will be carried out in the form of a survey. This will include primary
research in addition to secondary research as stated below. The survey research method
will be descriptive research design. Each respondent will be interviewed through a
Questionnaire. The sample will be selected by a simple random sampling method.
The survey will address the following information area:

Information Areas:

The objective as spelt out can be elaborated into specific information areas to be studied.

 How do customers perceive Maggi as a stable brand, their perception of noodles
and how do they associate themselves with Maggi?

 Are the consumers aware of Maggi Brand or they associate noodles with some other
brand?

 Which product from the entire basket of Maggi products do the consumers consider
as the best selling product for Maggi and to which the consumers frequently buy?

 Are the consumers willing to accept Maggi brand extensions to some other products
like chocolate, juices, chips etc?

QUESTIONNAIRE



Q 1) Are you a consumer of Maggi?

□ Yes □ No

Q 2) What comes first in your mind when you hear the word Maggi ?

• Noodles
• Fast food
• Snacks
• None of these

Q 3) what is the brand that comes to your mind when we say the word noodles?
• Maggi
• Top Ramen
• Surya Noodles
• Anil Noodles

Q 4) Rank the following Maggi products w.r.t. frequency of purchase with 1 being the
highest rank RANK

• Noodles _________
• Ketchup _________
• Soup _________
• Pickles _________
• Cubes _________

Q 5) With what products would you associate the brand Maggi?
• Ketchup
• Noodles
• Soup
• Masala

Q 6) On a scale of 1 to 5 rate Maggi on the following parameters
• Taste ____________
• Variety/Flavours ____________
• Hygiene/Purity ____________
• Availability ____________
• Packaging (SKUs) ____________

Q 7) Rank the categories which Maggi should look in future in order of your importance :



• Chocolates _____________

• Salted Potato Chips _____________

• Fruit Juices _____________

• Processed foods(Ready to use pastes, masalas) ____________

• Others ( Please mention) _____________

Q 8) How do you perceive Maggi products?
• Good for health.
• Ready to eat.
• Junk food
• Tasty / Fun eating

Q 9) Which Maggi products in noodles category do you regularly buy? (Repositioning
awareness)
• Maggi masala
• Maggi vegetable atta noodles
• Maggi dal atta noodles
• Maggi rice noodles mania
• Others

Q 10) You came to know about Maggi from:

• Newspapers
• Radio
• T.V advertisements
• Word of mouth
• Other source



Q 11) Do you remember any of the T.V. advertisements of Maggi Tomato Ketchup?

□ Yes □ No

Q 12) Do you perceive Maggi noodles as a healthy product?
• Yes
• No

Q 13) If No then your suggestions for improvement as a healthy product?

________________________________________________

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _



ANALYSIS OF THE QUESTIONNAIRE
Q 1) Are you a consumer of Maggi?

□ Yes □ No

Analysis: The survey suggested that out of 20 consumers all 20 are consumers of maggi
products. Maggi is quite famous with the different types of consumers in the market. Our
survey took the sample of consumers in general.

Q 2) What comes first in your mind when you hear the word Maggi ?

• Noodles
• Fast food
• Snacks
• None of these

Analysis: The survey suggested that 14 out of 20 consumers associated maggi with
noodles. 3 for snacks and masala each. People are familiar with maggi as a brand for
noodles in majority.

Q 3) what is the brand that comes to your mind when we say the word noodles?
• Maggi
• Top Ramen
• Surya Noodles
• Anil Noodles

Analysis: The survey suggested that Maggi is the most popular brand with consumers
of noodles. It suggests that 18 out of 20 consumers associate noodles with maggi.



Q 4) Rank the following Maggi products w.r.t. frequency of purchase with 1 being the
highest rank RANK

• Noodles _________
• Ketchup _________
• Soup _________
• Pickles _________
• Cubes _________

Analysis: Most of the consumers have ranked noodles as 1. People purchase maggi
noodles in majority. The frequency of the purchase of maggi noodles is high.

Q 5) With what products would you associate the brand Maggi?
• Ketchup
• Noodles
• Soup
• Masala

Analysis: The survey suggested that 12 out of 20 people associated the brand maggi with
noodles. 6 consumers associated it with masala. 2 consumers associate the brand with
soup and 1 with ketchup.

Q 6) On a scale of 1 to 5 rate Maggi on the following parameters
• Taste ____________
• Variety/Flavours ____________
• Hygiene/Purity ____________
• Availability ____________
• Packaging (SKUs) ____________

Analysis: The products of maggi have been rated well above 3 in the above parameters
by most of the consumers.



Q 7) Rank the categories which Maggi should look in future in order of your importance :
• Chocolates _____________

• Salted Potato Chips _____________

• Fruit Juices _____________

• Processed foods(Ready to use pastes, masalas) ____________

• Others ( Please mention) _____________

Analysis: According to the survey, maggi should look for salted potato chips in future as
it is highly demanded by the people in the market.

Q 8) How do you perceive Maggi products?
• Good for health.
• Ready to eat.
• Junk food
• Tasty / Fun eating

Analysis: The survey suggests that most of the consumers perceive maggi products as
being good for health.

Q 9) Which Maggi products in noodles category do you regularly buy? (Repositioning
awareness)
• Maggi masala
• Maggi vegetable atta noodles
• Maggi dal atta noodles
• Maggi rice noodles mania



• Others

Analysis: The survey suggested that most of the consumers regularly buy maggi
vegetable atta noodles while a few of them preferred maggi masala noodles.

Q 10) You came to know about Maggi from:

• Newspapers
• Radio
• T.V advertisements
• Word of mouth
• Other source

Analysis: The survey suggested that a majority of the people came to know about maggi
through television advertisements. Maggi advertisements are quite famous with the
consumers.

Q 11) Do you remember any of the T.V. advertisements of Maggi Tomato Ketchup?

□ Yes □ No

Analysis: The survey suggested that the advertisement of maggi tomato ketchup is
remembered by the consumers. 12 out of 20 consumers remember the advertisement of
tomato ketchup.

Q 12) Do you perceive Maggi noodles as a healthy product?
• Yes
• No

Analysis: The survey suggested that majority of the consumers perceive maggi noodles as
a healthy product. The survey suggests that 20 out of 20 consumers perceive maggi
noodles as a healthy product.



Q 13) If No then your suggestions for improvement as a healthy product?

________________________________________________

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Analysis: The survey suggests that 20 out of 20 consumers perceive maggi noodles as a
healthy product and need no improvement as a healthy product.



BIBLIOGRAPHY

www.google.com

www.wikipedia.com


A project on research and methodology of maggi

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