OBJECTIVE:

1) To identify the factors and parameters that drive the growth of fast food industry
in India and analyze which of these affect Maggi Noodles
2) To understand the challenges faced in sustaining its image as a popular brand in
competitive driven environment
3) To study the consumer behavior pattern and factors strengthening the stronghold
of Maggi in noodles market

INTRODUCTION:
Maggi noodles is a brand of instant noodles parented under Nestle India Ltd, the
Indian subsidiary of the major global FMCG player Nestle SA. It maintains its
presence in New Zealand, Brunei, Malaysia, Singapore, Australia, India, South
Africa, Brazil, Sri Lanka, Bangladesh, Fiji and the Philippines.
It was the pioneer in introducing the protein rich legume meal in the market, which
was followed by readymade legume meal soup in 1886.Till 1982, maggi 2 minute
noodles which come under instant noodles category reigned NILs product line.
Initially, when it entered India it targeted working women as its major customer
base but over the years they have positioned themselves as health and wellness
company which is a 'convenience product', for mothers and as a 'fun' product for
children. The popular tagline, 'Fast to Cook Good to Eat' was also in line to
promote this positioning.

SWOT ANALYSIS
1. The most popular brand in India and almost synonymous for instant noodles.
The first product to be introduced in Indian market as instant noodle product.
2. 60% market share in India. ( Source : http://www.euromonitor.com/noodlesin-india/report)
3. Innovative and effective advertising strategies. The idea of 2-minute
noodles positioned it as an automatic choice for fast food. Taste bhi
health bhi has found acceptance with both mother and children.
4. Strong distribution channel: strong urban presence. Slowly capturing the
rural market as well. Fast food joints like Maggi point have been opened in
cities like Delhi exclusively for Maggi noodles.

5.

Innovative products matching Indian taste are being introduced e.g Classic
Masala, Chicken flavor etc.
6. Targeting different demographics and coming up with exclusive product to
target the segment
e.g : Atta noodles for health concern consumers, Rice Mania for
teenagers, Cuppa Mania for office goers etc.
7. More packaging variants to introduce different price range right from single
noodle packs of 50-75 gm. Priced at INR 5.

Weakness of Maggie Noodles :

Lack of flavors and innovations with the existing product competitors like
Hindustan Unilever, ITC, Nissan are experimenting and innovating the noodle
product with healthy options (Oats, multigrain etc) and with new tastes.
Unable to popularize and grab market share for new products.
Most popular noodle product is made up of Maida which can result in health
issues, if consumed regularly.
Slow Growth in recent years - In the past two years , Its expansion has been
the lowest in last decade accounting volume growth of less than 2%.

Opportunities....
1)Growth of noodles market at around 15% annually since 2008, expected to continue.
2) Instant noodles serve "an important role in satiating hunger and in sustaining lives for many
worldwide, including those hanging on under difficult circumstances," according to Deborah Gewertz,
Professor of Anthropology at Amherst College in US.
3)Huge Market share, upwards of 60%. Market leader, capability to with stand inflation by passing
cost to consumers.
4)Brand recognition is phenomenal.
5)correct time to diversify to other segments of convenience and nutritious foods such as Oats.
6)Rural markets still remain to be exploited which can be done by maggi due to its large market
capital, extensive distribution network and can also extend creditto rural retailer.
7)New segments being created with rising number of working couple, youth and middle class
population.
8)Greater appetite for innovations like Attta, Mutligrain, vegetable, Different flavours.
9)Can exploit large market base further buy finding new connects to 'out-grown' cosumers such as my
1st Maggi experience etc.

10)Can come up with game changing pricing based on past trends and increase penetration in semiurban areas where affordability is a decisive factor.

Threats : Maggi
Noodle market does not provide much entry barrier to new brands as it is widely
accepted and desired product. This market segment shows great capacity for
future growth leading to changing lifestyle and eating habits.
High CompetitionMaggi noodles had a 90.7% share in December 2009, which was dropped to 86.5% in July 2010 on
an all-India basis and further reduced to less than 70% by 2014

Top ramen (IndoNissin) using the advantage of category growth introduced new
categories of instant noodles like cup noodles and mug noodles. Top ramen
Wai-Wai: wai-wai rising as a competitor has already taken over eastern market
of India.
sunfeasts yippee (ITC) : Studying consumer behavior ITC launched Yippee
noodles defining them as non sticky longer noodles . As a result Yippee was able
to acquire10%market share of maggi with in few months.
Price wars: Top ramen price is less than that of maggi. Thus targeting noodles
market of Middle class and Low income class.
Perception- Maggi has always been seen as unhealthy product ,this weakness of
magi has been exploited by competitors for promoting healthy alternatives.

PEST analysis