EGMP48

Maggi Noddle Marketing Mix

A Marketing analysis of Maggi noodle product in India. This presentation
has been compiled by the below participants of IIMB EGMP – Batch 48
under the Guidance of Prof. Avinash Mulky.

Harika Narayandas (EGMP48021); Jyothi Prasad (EGMP48027); Lokesh Patel (EGMP48031);

Sainath Venkataraman (EGMP48051); Vishwanath Halyalkar (EGMP48072).
  Maggi Noodle Products EGMP48

TABLE OF CONTENTS
 Consumer Behavior

 Company Analysis

 Competitors Analysis

 Segmentation and Targeting

 Positioning

 Marketing Mix
 Maggi Noodle Product EGMP48

 In the 1882 Julius Maggi launched Maggi Products mainly to serve working women due to their busy
schedule and little time to cook food.

 In the 1982, Maggi Noodles were launched in India, targeting the working women and positioned as a
“Convenience Product”, an alternative to Meals and Dinner.

 Maggi faced difficulties in selling their product, soon realized the Indian consumer is not willing to have
Maggi noodle as alternate to their lunch or dinner.

 After some research Maggi looked to target to replace evening snacks as alternate to biscuits, cookies,
chips, home made snacks(time consuming tough for working women), unhealthy outside food for children
home coming after school.

 Maggi instant noodles became very popular; "Maggi" is synonymous with instant noodles, captured over
60% of Rs 4,000 crore instant noodles market in India, introduced new product Veg. Atta Noodles for
health conscious consumers, Rice Mania for teenagers and Cuppa Mania for working group.
 Consumer Behavior
To study consumer behaviour irrespective
of age, gender and category towards
Maggi Noodles
Figure 1: Age and gender of participants
Interpretation of figure 1: Out of 74 participants
40 (which makes 54.05% of the sample group) are
male who form most of the survey takers, while
the number of female participants is 34. On an
overall level, majority of the participants were of
the age between 25 to 35.
EGMP48
Understanding the preference to consume Maggi Instant Noodles vs. other
brands in the market
Figure 2: Preference to eat Maggi instant noodles
Figure 3: Preferred brand of instant noodle in the market
Interpretation of figure 2: The results indicate that
Interpretation of figure 3: Of all the brands in the
63.51% of the sample group prefer to eat Maggi
irrespective of gender, while 29.73% do not prefer market selling instant noodles 72.60% of
respondents have selected Maggi to be most
to eat.
preferred brand, while about 16.44% prefer other
brands not listed in the survey, this indicates the
popularity in the market for Maggi. Although
Patanjali is a new entrant in the market with a huge
portfolio of products, their instant noodle also
seems to be a preferred product.
 Consumer Behavior EGMP48

Understanding the frequency of Understanding the preference to consume Maggi Instant

consumption before and after the ban Noodles vs. other brands in the market

Figure 4: Frequency of Maggi consumption before the ban

Figure 6: Belief on Maggi Instant Noodles and if consumption is preferred

Figure 5: Frequency of Maggi consumption after the ban
Interpretation of figure 6: Based on the survey results, looks like majority of the
crowd (78.38%) still prefer to consume Maggi, this might be since the majority
(41.89%) are confused if the product still contains unhealthy amount of MSG and
lead. This can conclude that irrespective of the ban and the news on the product,
people still prefer to buy and consume Maggi instant noodles.

Interpretation of figure 4 and 5: Considering the age group of the participants,

the majority consumption of the product still seems to be the same, before and
after the ban, which is about ~40%. But, it’s interesting to see that 2.70% sample
group have stopped consumption of Maggi instant noodles daily, and the
percentage of participants who stopped or never consumed Maggi has increased
from 4.05% to 9.86%.
 Consumer Behavior EGMP48

Understanding the consumer purchase choice during the ban Is the taste still the same after the relaunch?
when Maggi wasn’t available in the market

Figure 8: Does Maggi still taste the same?

Figure 7: Preferred instant noodle brand during the ban and if
its still preferred over Maggi Instant noodles
Interpretation of figure 7: The results indicate that most of the population which is 36.23% of the
sample group preferred other brands than which was listed in the survey.
Based on the brand choices given, Yippie instant noodles seems to be the most
preferred which is a product of the Sunfeast brand. It’s noticed that the sample group is not very aware
of the fact that Yippie is just a product of Sunfeast and not a brand.
Additionally, Maggi was given as an option to study if Maggi was still available during
the ban, and it looks like the Maggi was still available during the ban and 13.04% of the sample group
had access to it either because they had stored it or the product was not efficiently pulled back from the
market, which also indicates that people did not believe that the ban was actually true.
Post the relaunch, the results indicate that the majority (43.66%) do not prefer the
product that was consumed during the ban of Maggi Instant noodles anymore. Which also supports the
fact that there is still a belief that Maggi is safe to consume and didn’t contain unhealthy amounts of
MSG and lead.
Interpretation of figure 8: The majority (88.73%) still believe Maggi Instant
Noodles still tastes the same.
Conclusion:
Based on the results from the survey, the following are some of the findings:
1. The sample group were of the age group between 25-35 and seems to be the most
who are consuming Maggi Instant Noodles.
2. Maggi is still the more preferred brand for instant noodles and people still trust it.
3. At a macro level, the ban has not affected the consumption of Maggi in any major
ways and people still prefer to consume it.
4. At a micro level, the frequency of consumption after the ban has dropped from before
the ban. Also, some part of the population has stopped consuming Maggi instant
noodles post the ban.
Company Analysis EGMP48
 Competitors Analysis EGMP48

 India is the 4th biggest market for instant noodles, for 5.4 billion servings, was valued at INR 93.66 billion in 2017.
with expected CAGR ~5.6% during 2018-2023 make it attractive market for various companies.

 Nestle(Maggi) has highest market share of 60%, nestle able to retain its popularity even after ban in 2015.

 To take advantage about of Maggi ban situation, many other player entered in to the market to take on Maggi Noodle
market share, launched new flavors, healthy ingredients(like Atta, Oats, Vegetables) and packaging.

Company Product Products Vairants Differentiator/Position

ITC Sunfeast Classic Masala, Magic Masala, Chinese Masala, Tricolor Pasta Substitute to Maggi
Yippee (Creamy Corn) and Tricolor Pasta (Masala)
Noodles
Hindustan Knorr Soupy Mast Masala Soupy Noodles, Knorr Chinese Noodle Hot Spicy, Unique combination of noodles and soup
Unilever Noodles Knorr Chinese Noodle Schezwan, Chinese Noodles and Fried Rice.
Capital Ching’s Schezwan Instant Noodles, Singapore Curry Instant Noodles, Hot Desi Chinese cuisine
Food Garlic Instant Noodles, Egg Hakka Noodles and Veg Hakka
Noodles.
Indo Nissin Top Ramen Atta Noodles, Cup Noodles, Curry Veg Noodles, Oats Noodles, Better market share in Cup noodle products
Scoopies Short Noodles and Super Noodles

 According to market experts, Maggi has been dominating the instant noodles market in India for long, currently facing
tough competition with this new comers and their product range.
 STPD ANALYSIS EGMP48

Segmentation Targeting Positioning Differentiation

• Age • Kids • Instant cooking(2min • Choice of taste
• Lifestyle of urban • Youth Maggie) &flavours
families • Working women • Low cost meal • Packing –Available in
• Eating Habit • Corporate employees • Tagline-‘Taste bhi, different sizes
• Cold location • Travel people Health bhi’-taste also
• Midnight Eaters health also.
• Bachelors • Easy to cook, good to
• Health eat
conscious people- atta
 STPD Analysis EGMP48
Segmentation :
• Brand is segmented based on the habits and lifestyle of urban families.

Targeting:
• However Maggie targeted working women initially ,it ended up targeting towards kids later as
per the research which showed kids were the largest consumers of brand.
• It appealed to kids because of two reasons –good taste and two minutes cook time.
• Maggie also targeted corporate employees/youth and office goers who need refreshment time
to time because of hectic schedule. It is survivor for night shift people.

Positioning:
• It positioned as the two minutes cook noodles in the market with the tag lines called ‘2minutes
noodles ‘ / ‘2-min Mein Khushiyaan’
• It also stated ‘taste bhi health bhi’ which means taste also, health also.

Differentiation:
• As per the Indian requirements ,there are varieties of taste and flavors accordingly and also
available in different sizes.
 Marketing Mix EGMP48

The Marketing Mix of Maggi analyses Nestle’s marketing strategy in India for the product with the help of the
4 P's which are Product, Price, Place and Promotion.

Product

Price

Place

Promotion
 Marketing Mix EGMP48

• The Product Strategy and mix in Maggi’s marketing strategy in India is that:
Product

• .
• There’s a lot of demand for Maggi masala but lesser in demand for the Curry and Cuppa Mania.
• To diversify and to sustain as a leader Maggi also provides Maggi Sauces, Maggi Pichkoo, Maggi Pazzta, Maggi
Magic cubes, Maggi BhunaMasala, MaggiCoconut MilkPower, MaggiPasta & Pizza Sauce Maggi Pichkoo etc.
• Maggi differentiates its Product from its competitors in the sense that Maggi Masala Noodles come in packs of
150,300,450,560 gm Pouch and Atta Noodles come in 80 gm Pouch, Noodles Chicken come in 152 gm Pouch.
Since Maggi comes in different sizes and there is wide variety of products which differentiates.

• Maggi from its competitors while you can find Yippee Noodles magic masala pack only in 75gm Pack and
280gm Pouch at the price of 10 Rs and 40 Rs, so there is less variety in terms of Product differentiation in
Yippee whereas Yai-Yai is available in single pack and single flavor. That is why Maggi has an edge over its
competitors.
 Marketing Mix EGMP48

• The Price Strategy and mix in Maggi’s marketing strategy in India is that it has a
Price

penetration strategy because Nestle knows that it has to penetrate the market the world
wide. There are many indirect competitors to Maggi as well. Maggi has a very clear-cut
policy regarding its prices. From its initial years it has kept low pricing policy because,
its consumers mostly belong to the average middle-class group. To make the product
affordable they had to tone down their prices but the volumes the product generates has
helped the company in maintaining a healthy profit. The basic strategy of instant
noodles is that it should be priced low so that it is available for everyone. Nestle Maggi
which is the market leader sells Maggi in the denominations of Rs.5,10,15,20 and 80 for
the family pack thus making it accessible for all. Generally, a 5% margin is available for
the retailers.
 Marketing Mix EGMP48

• The distribution strategy of Maggi can be explained as under:

Place

• .
• The Nestle Maggi products in India is popular not only in urban areas but also in the
rural parts of the country. The products are abundantly available across the country.
Nestlé India manufactures Maggi from 8 factories throughout India. From these
factories, the product is distributed all over the country towards the warehouses, from
there it goes to wholesalers and then to the retailers. The Maggi products are also
available to be purchased online owing to the progress the country has made in the e-
commerce and m-commerce segment.
• .
• The Maggi products are also available to be purchased online owing to the progress the
country has made in the e-commerce and m-commerce segments.
 Marketing Mix EGMP48

• One of the major factor for Maggi’s success in India and worldwide is their promotional
Promotion

activities. .
• .
• When Nestle decided to launch Maggi in India, its promotional activities included
creating awareness amongst housewives and children. Toys and utensils were offered as
gifts along with packets of Noodles. This turned out to be a huge booster for the brand
and made it an instant household name. Maggi advertised on kid’s channels and
between main programs in the television. Its tagline “2 minute noodles” is known to be
the smartest tagline in the advertising industry and is still very famous amongst the
consumers. Even during the time when it was making a comeback after a brief period of
ban in India, it is Nestle’s thoughtful promotional activities which helped the product
re-capture the market. ‘Maggi’ has become more or less a synonym for noodles in India.
 EGMP48

Participants of EGMP – Batch 48

Module 2 – Marketing
Presentation on Maggi Marketing Mix

Harika Narayandas (EGMP48021) ;

Jyothi Prasad (EGMP48027) ;
Lokesh Patel (EGMP48031) ;
Sainath Venkataraman (EGMP48051) and
Vishwanath Halyalkar (EGMP48072).