Professional Documents
Culture Documents
Research Methodology Project On Maggi Noodles
Research Methodology Project On Maggi Noodles
SUBMITTED BY
UNIVERSITY OF MUMBAI
RAJASTHANI SAMMELANS
Ghanshyamdas Saraf College Affiliated to University of Mumbai
RAJASTHANI SAMMELANS
Ghanshyamdas Saraf College Affiliated to University of Mumbai
CERTIFICATE
I Prof. Prajna Shetty here by certify that Ms. Monalisa Bhavesh Patel a student of Ghanshyamdas Saraf College of M.COM (SEMESTER III) has completed Project on RESEARCH METHODOLOGY ON MAGGI ( NESTLE ) in the Academic year 2013-2014. This information submitted is true and Original to the best of my Knowledge.
Principal:
College Seal:
ACKNOWLEDGEMENT
I take this opportunity to thank the UNIVERSITY OF MUMBAI for giving me a chance to do this Project. I express my sincere gratitude to the Principal, course co-ordinator Mrs. PRAJNA SHETTY , Guide Prof. PRAJNA SHETTY and our librarian and other teachers for their constant support and helping for completing the project. I am also grateful to my friends for giving support in my project. Lastly, I would like to thank each and every person who helped me in completing the project especially MY PARENTS.
DECLARATION
I Miss Monalisa Bhavesh Patel a student of Ghanshyamdas Saraf College of Arts and Commerce, Malad (W) M.COM (Semester III) hereby declare that I have completed project on RESEARCH METHODOLY ON MAGGI-( NESTLE ) in the academic Year 2013-2014. This information submitted is true and original to best of my Knowledge.
Date:
Signature of Student
INDEX
Sr. No. 1 2 3 4 5 6 7 8 9 10 10 11 12 13 14 15 16 Topic EXECUTIVE SUMMARY INTRODUCTION MAGGIE BRAND IN INDIA WHY SPECIFIC BRAND POSITIONING? MAGGIE BRND EXTENTION PRICE AND PRODUCT DEVELOPMENT PRODUCT VARIENTS MARKET SHARE RESEARCH METHODOLOGY ARTICLE OF ECONOMICS TIMES SURVEY RESULTS HYPOTHESIS & FINDINGS SWOT ANALYSIS STPD ANANYSIS CONCLUSION QUESTIONNAIRE BIBLOGRAPHY
Page No.
EXECUTIVE SUMMARY
The report entitled A research done on of Maggi Brand deals with the study of Maggi brand that was launched in India in the year 1983, by Nestle India Limited, which became synonymous with noodles. This research paper tries to find a solution to a real life problem of Maggi to launch its products as a Healthy Product. The introduction provides the company background, operational & other important information provided by the company which would assist in taking the decision for the right brand extension strategy for Maggi.
INTRODUCTION
The industrial revolution in Switzerland in the late 1800s created factory jobs for women, who were therefore left with very little time to prepare meals. This wide spread problem grew to be an object of intense study by the Swiss Public Welfare Society. As a part of its activities, the Society asked Julius Maggi miller to create a vegetable food product that would be quick to prepare and easy to digest. Born on October 9, 1846 in Frauenfeld, Switzerland, Julius Michael Johannes Maggi was the oldest son of an immigrant from Italy who took Swiss citizenship. Julius Maggi became a miller and took on the reputation as an inventive and capable businessman. In 1863, Julius Maggi came up with a formula to bring added taste to meals. Soon after he was commissioned by the Swiss Public Welfare Society, he came up with two instant pea soups and a bean soup - the first launch of the Maggi brand of instant foods in 1882 - 83. Towards the end of the century, Maggi & Company was producing not just powdered soups, but bouillon cubes, sauces and other flavourings. The Maggi Company merged with Nestl in 1947. Today, Maggi is a leading culinary brand and part of the NESTL family of fine foods and beverages. Under the Maggi brand, which is today known worldwide for quality and innovation, Nestle offers a whole range of products, such as packaged soups, frozen meals, prepared sauces and flavourings.
BRAND STORY
Launched in 5 flavours 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 analysis the focus on promotion turned out to be the single largest factor responsible for Maggis 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 Maggis extensions also made considerable use of promotional schemes. The focus of all Maggis 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 Maggis popularity became highly attributed to its extremely high appeal to children. As a result, Maggis annual growth rep ortedly touched 15% during its initial years.
Understanding these failures, and buoyed by the fact that the Maggi brand finally broke even in 1997, Nestl continued to explore new options for leveraging on the brand equity of Maggi noodles. The company realized that the kids who had grown up on Maggi noodles had become teenagers by the late 1990s. As they associated the product with their childhood, they seemed to be moving away from it. To lure back these customers and to explore new product avenues, Nestl launched Maggi Macaroni in July 1997. According to analysts, Maggi Macaroni was launched partly to deal with the growing popularity of competing noodles brand Top Ramen. Maggi Macaroni was made available in three flavours, Tomato, Chicken, and Masala. The company expected to repeat the success of Maggi noodles with Maggi Macaroni. As with most of its product launches, Maggi Macaronis launch was backed by a multi media advertisement campaign including radio, television, outdoors and print media with the tagline, Tum Roz Baby. The products pricing, however, proved to be a major hurdle. A 75-gm Maggi Macaroni pack was priced at Rs 11, while a 100-gm noodles pack was available at Rs 9. According to analysts, Nestl failed to justify this price-value anomaly to customers, who failed to see any noted value addition in Maggi Macaroni (packaging and flavour variants were similar to those of Maggi noodles). In addition, customers failed to see any significant difference between Maggi Macaroni and the much cheaper macaroni that was sold by the unorganized sector players. The biggest problem however was the taste of the new product. Since macaroni is thicker than noodles, Maggi Macaroni did not absorb the tastemaker well and consequently did not taste very good. The interest generated by the novelty of the product soon died out and sales began tapering off. Eventually, Nestl had to withdraw Maggi Macaroni completely from the market. Nestl had not even recovered from Macaronis dismal performance, when it learnt to its horror that Knorr had dethroned Maggi as the leader in the soup segment (end of 1997). The only saving grace for Maggi seemed to its ketchups and sauces, which were turning out to the rare successful extensions of Maggi. These products were supported by a popular advertisement campaign for the Maggi Hot & Sweet sauce brand. These humorous advertisements, featuring actors Pankaj Kapoor and Javed Jafri, used the tagline, Its different. However, during mid -1997, HLL began promoting its Kissan range of sauces aggressively and launched various innovative variants in the category. Nestl responded with a higher thrust on advertising and different size packs at different price points. Though Kissan gained market share over the next few years, Maggi was able to hold on to its own market share. Meanwhile the operational costs of Maggi noodles had increased considerably, forcing the company to increase the retail price. By early 1997, the price of a single pack had reached Rs 10. Volumes were still languishing between 13,000-14,000 tonnes.
PRODUCT VARIENTS
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
MARKET SHARE
45% 55%
Maggi
Others
20%
Maggi
80%
Others
RESEARCH METHODOLOGY
OBJECTIVES 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. Brand Extension of Maggi in terms of product diversity. Analyse the repositioning of Maggi brand as a Healthy product and the consumers perseverance towards the same.
RESEARCH PLAN Research Design: The research will be carried out in the form of a survey which will be done in areas near to Delhi (NCR region). The population has been segmented on the basis of salary Group and Age Group. Sample Design: The target population for our study is households. The sample will be selected by a simple random sampling method.
SAMPLE SIZE
The sampling unit is 150 which are divided as follows:
Number of 150 respondents Age-group 10 - 45 Monthly Household 25000 - 75000 INR Income Delhi, Survey Locations Faridabad,Gurgoan,Noida,Greater Noida 25K 40K 30 10 - 25 50 - 40K 60K 50 25 - 35 50 - 60K 75K 70 35 45 50 -
ECONOMICS TIMES
INDIANS EAT MOST MAGGI NOODLES IN THE WORLD "India has emerged as the largest consumer of Maggi noodles across all Nestle operations in the world," Donati told ET. It was Donati who brought the instant noodle brand to the country during his short stint in the early 1980s. Maggi went on to create a whole new product category and caught the fancy of kids across the country in no time. Today, while India tops in world-wide Maggi sales, the latter has grown to an estimated Rs 160-170 crore brand contributing as much as 8-9% to Nestle India's top line. Maggi noodles sell in most Asian countries, Australia and Africa. However, FMCG analysts are not impressed. They say Maggi has done little to expand the noodles category per se. "Nestls investment on Maggi has been squarely disproportionate to the growth of the brand," Mumbai-based equity research firm ASK Raymond James senior vice-president (research) Nikhil Vora said. Today, after 20 years of flogging the Maggi brand, the size of instant noodles market is a small Rs 200 crore. Yet, most analysts agree that Nestle India has done well to leverage the brand to enter a large number of culinary products. Just for the record, "In 10 years, I want to sell two and a half times of what I am selling today," said Donati. So, the learning curve is shrinking. Launched in early 1980s, Maggi was positioned on the convenience plank which yielded good results. Looking at the success of noodles, Nestle India decided to extend the brand to a number of products such as sauces, soups, pickles and macaroni in mid-1990s. Maggi macaroni bombed and pickles didn't do well either. Maggi soups and sauces chugged along and today have a decent presence in the market. Maggi noodles' acceptance among Indian consumers didn't come easy. Nestle changed its formulation some time back which was rejected by the consumer. So, the company had to revert to the original make. Since then, it has been a smooth sailing for the brand. Interestingly, it is only now, during Donati's second stint, in the country that the brand has stabilized. "Maggi noodles have seen a robust double-digit growth in sales during the last four years," said Donati. Last year, Nestle India launched Chinese Noodles as a snack food for the adults.
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? Do they consider noodle as a healthy product or they are aware of the companys strategy of repositioning it to a healthy product by the launch of some of the new products? 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?
SURVEY RESULTS
Brand Associations Sources of Brand equity like brand association of Maggi as a Brand was found highest with the age group of 10-25 and the product category associated with it was the noodles category (see exhibit 1). Consumers in the age segment of 10-25 could easily relate Maggi to noodles. In the income wise category the brand association was highest with the income group of 25k-40k were more than 40 respondents associated Maggi with noodles (see exhibit 2). The implications from the findings discussed above seem that Maggi has good brand association in terms of noodles. Consumers presume Maggi as Noodles and the companys philosophy of projecting the brand as noodles brand seem to be viable in this regard.
Brand Association(Agewise)
40 35 30 25 20 15 10 5 0 Noodles Fast Food Snacks None of These 10yr - 25yr 25yr - 35yr 35yr - 45yr
Exhibit 1
Brand Association(Incomewise)
45 40 35 30 25 20 15 10 5 0 No Income 25K - 40K 40K - 60K 60K - 75K Noodles Fast Food Snaks None of These
Exhibit 2
BRAND RECALL
From the Exhibit 3 & 4 given below it seems a clear trend that Maggi has a good brand recall as compared to its competitors like Top Ramen, Surya noodles etc. Consumers could easily associate Maggi with noodles. In the Age wise category, the respondents of the age group of 25-45 were highly cautious of Maggi brand and seemed to be consuming Maggi more as compared to other age segments.
Brand Recall(Agewise)
45 40 35 30 25 20 15 10 5 0 Maggi Top Ramen Surya Noodles Anil Noodles
Exhibit 3
Brand Recall(Incomwise)
45 40 35 30 25 20 15 10 5 0 No Income 25K - 40K 40K - 60K 60K - 75K Maggi Top Ramen Surya Noodles Anil Noodles
Brand Recall(Genderwise)
25 20 15 10 5 0 Male Female Male Female Male Female Male Female No Income 25K - 40K 40K - 60K 60K - 75K Maggi Top Ramen Surya Noodles Anil Noodles
BRAND AWARENESS
From the responses of the respondents in the conducted survey it was evident than Maggis Brand awareness was very high in terms of noodles were around 65 %of the respondents associated magi as noodles and only 20 % of the respondents knew ,Maggi as a Ketchup, 9% as soup etc.
Brand Awareness
Soup Masala Ketchup 6% 9% 20%
Noodles 65%
The trend indicated that Maggis brand extension strategy to increase its basket has not been quite successful in other food segments .This might be because of the larger share of market captured by the competitors hence Maggi has a high potential in markets like ketchup, soups etc.
Brand Awareness(Agewise)
40 35 30 25 20 15 10 5 0 Ketchup Noodles Soup Masala 10yr - 25yr 25yr - 35yr 35yr - 45yr
Repositioning Awareness
Maggi rice noodles Others mania 3% 7% Maggi dal atta noodles 14%
From the pie chart given below it can be clearly seen that Maggi is still perceived as a non healthy products by the consumers and in spite of the efforts to position Maggi as a healthy product by the company the brand is still perceived as a ready to eat food brand that has a high market share in the noodle category in India.
METHODOLOGY
The study is based on primary data. The data were collected through interview method by using a structured questionnaire. For the purpose of the study the data have been collected in different places of the market especially in retail shops. One hundred and twenty five nestle maggi noodles customers were randomly selected for the study as sample. Necessary data have also been collected from sources like books, magazines and internet. Chi-square test has been applied for testing the hypotheses.
FINDINGS
1. 32 percent of the respondents prefer maggi 2-minute noodles. 2. Vast majority (85 percent) of the respondents have tasted all brands of nestle Maggi noodles. 3.72 percent of the respondents purchase nestle maggi noodles for its quality with low price. 4.60 percent of the respondents purchase nestle maggi noodles whenever needed. 5. Television advertisements are a major factor in purchase decision compared to other Medias. 6. The foremost influencer in purchase decision of the respondents is children. 7. 60 percent of the respondents were expecting new varieties of maggi noodles from Nestle. 8. 38 percent of the respondents wanted a change in the quantity of present brands. The respondents want small quantity packets. 9. 50 percent of the respondents feel that the advertisements are good. 10. 44 percent of the respondents feel that prices are cheap. 11. 49 percent of the respondents are moderately satisfied with the quality of nestle Maggi noodles. 12. Majority (68 percent) of the respondents consider that the packing is attractive. 13. Higher percentage (60) of the respondents is awareness on contents/ ingredients
SWOT ANALYSIS
OPPORTUNITY Increasing number of working youth Product has been acceptable in youth category Shift to rural market Changing preference of consumer towards Chinese food and fast food. Can foray into other food markets with its strong Brand name
THREAT Price war with competitors. Strong presence of regional competitors Consumers dont perceive it as a Healthy Product
CONCLUSION
The food processing business in India is at a nascent stage. Currently, only about 10% of the output is processed and consumed in packaged form thus highlighting huge potential for expansion and growth. Traditionally, Indians believe in consuming fresh stuff rather than packaged or frozen, but the trend is changing and the new fast food generation is slowly changing. Riding on the success of noodles, Nestle India, tried to make extensions of the Maggi brand to a number of products like, sauces, ketchups, pickles, soups, tastemakers and macaroni in the mid-1990s. Unfortunately, the macaroni and pickles didnt pick up as expected. The soups and sauces did somewhat fine, gathering considerable sales volumes and have a satisfactory presence even today. Maggi Noodles itself faced a bit of difficulty with respect to taste, and nearly lost its position in the minds of Indian consumers in the late 1990s. When Nestle changed the formulation of its tastemaker, the ominous packet that came along with Maggi Noodles, a major chunk of consumers were put-off and sales started dropping. Also, Maggis competitor TopRamen took advantage of the situation and started a parallel aggressive campaign to eat into Maggis market share. But the company quickly realised this and went back into making the original formula coupled with a free sampling campaign. This helped Maggi to win back its lost consumers and pushed up its sales volumes again! Maggi Today The year 2008 saw India leading in worldwide Maggi sales. The brand has grown to an estimated value of Rs 160-170 crore and contributes at least 89% to Nestle Indias top line. All the same, some FMCG analysts feel that the brand has not done much to expand the noodles category. Even after 25 years of its launch, the size of the instant noodles market is yet quite small at Rs 300 crore. But yes, the parent company, Nestle India Limited has certainly encouraged the brand to enter into other culinary products.
RECOMMENDATION
After the conducted study following recommendations could be sited for Maggi Brand. - To gain maximum leverage in terms of profit the company should pay emphasis on segments with age groups 25-35 and above .Advertising is the key to success. Targeting these segments will not only enhance the companys profit margins but also it will leverage the brand image of Maggi. - The company should advertise its products by depicting attributes related to Health like Nutrition values, % of Vitamins, Proteins etc.This would help in customers perceiving the product as Healthy. - Foray into other food products like chips, chocolates etc under its sole brand name would not only help in Brand extension but will also enhance Maggis market share. FUTURE PLANS - Nestl Indias objective is to manufacture and market the companys products in such a way so as to create value that can be sustained over the long term for consumers, shareholders, employees and business partners. - Maggis aims to create value for consumers that can be sustained over the long term by offering a wide variety of high quality, safe food products at affordable prices. - The company continuously focuses its efforts to better understand the changing lifestyles of modern India and anticipate consumer needs in order to provide convenience, taste, nutrition and wellness through its product offerings. LIMITATIONS: The present study is confined to a minimal sample size and may not reflect the opinion or response of the entire population in general. The results of our study are entirely confined to the responses of the Delhi consumers and might deviate in terms of actual population as a whole.Recomendations given after the study are entirely dependent on the survey and the secondary analysis done in the report.
QUESTIONNAIRE
Q-1 Are you a customer of magi ? Yes No Analysis: This survey suggested that out of 20 customers all are consumers of Maggi products. Maggi is quite famous with the different types of customers in the market. Our survey took sample of customer 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 magi with noodles. 3 for snacks and masala each. People are familiar with magi 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 the customers of noodles . It suggests that 18 out of 20 consumers associates noodles with magi.
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 purchase of magi noodles is very 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 magi with noodles .6 customers associated 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 product of Maggi have been rated well above parameters by most of the customers.
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, masala) ____________ Others ( Please mention) _____________ Analysis: According to the survey ,magi should look for salted potato chips in future as it is highly demanded by the people in market.
Q-8 how do you rate Maggi brand in terms of following parameters: Expertise (Competent, Innovative, Market leader) Trustworthiness (Dependable and keep customers interest in mind) Liability ( Fun ,interesting) None of these
Analysis: According to survey , Maggi brand is using expertise strategy to look forward in future .
Q-9 How do you perceive Maggi products? Good for health. Ready to eat. Junk food Tasty / Fun eating Analysis: The survey suggest that most of the consumers perceive magi product as being good for health .
Q-10 Which Maggi products in noodles category do you regularly buy? (Repositioning awareness) Maggi masala Maggi vegetable attar noodles Maggi dal Atta noodles Maggi rice noodles mania Others Analysis: The survey suggest that most of the consumers regularly buy magi vegetables Atta noodles while few of them preferred magi masala noodles.
Q-11 Do you perceive Maggi noodles as a healthy product? Yes No Analysis: According to survey Maggie is perceived as a healthy product for most of the consumers.
Q-12 If No then your suggestions for improvement as a healthy product? ____________________________________________ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ Analysis: The survey suggest that 20 out of 20 consumers perceive magi noodles as a healthy product and need no improvements as a healthy product.
BIBLOGRAPHY
www.google.com
www.wikipedia.com