Success Story of Maggi: Business Case Study

Maggi, the world-famous instant noodles brand, is one of the most profitable products of Nestle. However, it was not started by Nestle. In 1886, a businessman named Julious Maggi founded Maggi. Nestle acquired Maggi in 1947, after which it planned to take the product worldwide. India became one of its biggest markets when Maggi entered India in 1983. Today, Maggi has a 70% market share in the noodles business, and no one has been able to beat it so far.

The Reason Behind Maggi’s Success

There are three secrets behind this. The first secret is Neuromarketing. When Maggi entered India for the first time, they initially marketed themselves as a convenience product for women, but they failed miserably. The reason was that they focused on the consumer rather than the buyer. The buyer of Maggi is the housewives, women who work at home. The women’s psychology in India is simple, and they are more interested in buying products for their kids than for themselves. Maggi committed the same mistake initially. They marketed for women, whereas they should have marketed for kids. After that, Maggi changed its marketing campaign, targeting the snack segment.

Maggi wanted to replace the snacks in India with Maggi noodles, which can be cooked in just two minutes. In India, the staple diet is Roti-Sabji and Dal-Chawal. Kids like to have snacks like Pakoda, Samosa, Sandwich, etc., in the evening. But these items need a lot of time to cook. The cheap alternative is Chips or Biscuits. But, there is one factor that is the quantity. One packet of Maggi is more unhealthy than biscuits or chips, but women believe that if their kids have 2-3 packs of chips or biscuits, it is too unhealthy. Instead of that, they cook and feed their children with a single packet of Maggi. This is where Maggi has targeted the consumer by studying their psychology.

The second secret behind Maggi’s success is its brand Qs, which support Neuromarketing. The first factor is Visual Codex. If you see the Maggi logo, you will find two dominant colors, red and yellow. In human body, these colors increase Ghrelin, which is a hunger hormone. The second factor is Design Consistency. Maggi has not changed its logo and packaging for years to generate long-term recall value in our minds. The third factor is Void Fillers. Maggi observed that women are becoming detached from their kids and the emotional bond needs to be strengthened. Maggi has filled this void with emotional storytelling in its ads, strengthening the bond between mother and child.

The third and most important secret behind Maggi’s success is quality control. In 2015, when Maggi was banned, it was found that Maggi contained illegal quantities of Lead and MSG (Mono Sodium Glutamite). The allowed quantity was 2.5 PPM, and the Maggi sample contained 17.2. Nestle immediately recalled all its Maggi products from the market, resulting in a loss of millions of dollars. Nestle India, along with the central and state governments, worked together to bring Maggi back to the market after the required quality checks.

Conclusion

Neuromarketing, Maggi’s brand Qs, and quality control are the three secrets behind Maggi’s success. Maggi has studied the psychology of its buyers and consumers and designed its marketing campaign and brand Qs accordingly. In terms of quality control, Nestle India has gone through the toughest time and has come out of it stronger. Today, Maggi is an inseparable part of the Indian food culture, loved by people of all ages and backgrounds.