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A project on Research and Methodology

Submitted to University of Mumbai In the partial fulfillment of BMS Degree By the students of Class S! BMS Div A Semester "ourth #roup Members $han Sha%ia (ooja Mac)an (armar Reema Sana Sayyed Sana Shai-h Shirin shei-h Studying at Ri%vi College of Arts1 Science1 Commerce Bandra 23est41 Mumbai '///./5 "or the Academic !ear &//*6 &/7/5 &' &* +, '' ./ 0/

AC$893:;D#;M;8<5
We would like to thank our professor; Mr Samir Virani who gave the opportunity to make this project through which we have gained valuable information on the topic Maggi!" We would also like to thank all my friends for helping and making the project successful! #hese acknowledgements are one way where we can actually thank the people who have been instrumental in the making of this project! With their help the project was done with ease! We would like to thank a lot of people without whose co$operation and support working on this project would not have been so pleasurable and interesting!

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& professor Mr Samir Virani here by certify that 'han Sha(ia) *ooja Macwan)) +eema *armar) Sana Shaikh) Sana Sayyed and shirin shaikh of S,!-MS! ./iv 0 12 of +i(vi 3ollege of 1rts) Science) 3ommerce 4 Management has completed a project on the information "Maggi" in the academic year 2556 0 2515! #he &nformation submitted is #rue 4 original to best of my knowledge!

Signature of the principal /ate 7 1%85282515 *lace 7 Mumbai

Signature of *rofessor

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:ur group7$ 'han Sha(ia) *ooja Macwan)) +eema *armar) Sana Shaikh) Sana Sayyed) and Shirin Shaikh of +i(vi 3ollege of S,!-MS! ./iv 0 12 hereby declare that we have completed this project on Maggi" in the academic year 2556 0 2515! #his information provided by us is true and original to the best of our knowledge!

$han Sha%ia (ooja Mac)an (armar Reema Sana Sayyed Sana Shai-h Shirin Shai-h

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Sr5 8o 7 & + ' . 0 > , * 7/ (articulars Introduction to Maggi Brand Story ?arious products of Maggi <aste and preference of consumers Demography and psychography of consumers Mar-et Share S39< analysis of Maggi brand Research methodology @uestionnaire Analysis of Auestionnaire (g5 8o > , *67/ 7767& 7+ 7'67. 70 7>67, 7*6&7 &&6&.

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I8<R9DUC<I98 <9 MA##I

Maggi is a =estl> brand of instant soups) stocks) bouillon cubes) ketchups) sauces) seasonings and instant noodles! #he original company came into e?istence in 1@A2 in Swit(erland) when Bulius Maggi took over his fatherCs mill! &t Duickly became a pioneer of industrial food production) aiming at improving the nutritional intake of worker families! &t was the first to bring protein$rich legume meal to the market) which was followed by ready$made soup based on legume meal in 1@@<! &n 1@6A) Bulius Maggi founded the company Maggi EmbF in the Eerman town of Singen where it is still established today! Maggi 3omes to &ndia 0 teething troubles Maggi noodles was launched in &ndia in the early16@5s! 3arlo M! /onati) the present 3hairman and Managing /irector of =estle &ndia Gtd) brought the instant noodle brand to &ndia during his short stint here in the early eighties! 1t that time) there was no direct competition! #he first competition came from the ready$to$eat snack segment which included snacks like samosas) biscuits or maybe peanuts) that were usually Hthe bought outI type! #he second competition came from the homemade snacks like pakoras or sandwiches! So there were no specific buy and make snackJ Moreover both competitors had certain drawbacks in comparison! Snacks like samosas are usually bought out) and outside food is generally considered unhygienic and unhealthy! #he other competitor) HhomemadeI snacks overcame both these problems but had the disadvantage of e?tended preparation time at home! Maggi was positioned as the only hygienic home made snackJ /espite this) =estl> faced difficulties with their sales after the initial phase! #he reason being) the positioning of the product with the wrong target group! =estle had positioned Maggi as a convenience food product aimed at the target group of working women who hardly found any time for cooking! Knfortunately this could not hold the product for very long! &n the course of many market researches and surveys) the firm found that children were the biggest consumers of Maggi noodles! Luickly 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 H2$minute noodlesI with a punch line that said HMast to cookJ Eood to eatJI 1nd this gave the implied understanding to the consumer that it was a Hbetween mealsI snack! #he company could have easily positioned the product as a meal) either lunch or dinner! -ut) it chose not to do so) because the &ndian consumer mindset did not accept anything other than rice or roti as a meal! Fence trying to substitute it with noodles would have been futile! #he firm did not position it as a Hready$to$eatI meal either) as the housewife prefers to HmakeI a meal for her kids rather than buy it for them! 1nd if she can make it in two minutes with very little effort) then obviously itIs a hit with herJ WhatIs more) if kids also love the taste) the product is as good as soldJ So the H2$ minuteI funda coupled with the Hyummy taste workedJ

BRA8D S<9R!
Gaunched in ; flavors initially 0 Masala) chicken) 3apsicum) sweet 4 sour) and Gasagna 0 Maggi had to fight hard to be accepted by &ndian consumers with their hard$to$change eating habits! #he packaged food market was very small at this time) =estle had to promote noodles as a concept) before it could promote Maggi as a brand! &t therefore devised a two$pronged strategy to attract mothers on the HconvenienceI plank and lure kids on the HfunI plank! Eradually) the market for instant noodles began to grow! #he company also decided to focus on promotions to increase the brand awareness! &n the initial years) =estle promotional activities for Maggi included schemes offering gifts. such as toys and utensils2 in return for empty noodles pack! 1ccording to analysits the focus on promotion turned out to be the single largest factor responisible for MaggiIs rapid acceptance! =estleNIs Managers utili(ed promotions as measured to meet their sales target! Eradually) sales promotion became a crutch for Maggi noodles sales! Gater many of the MaggiIs e?tensions also made considerable use of promotional schemes! #he focus of all MaggiIs e?tensions was more on below the line activities rather than direct communication! &n addition to promotional activities) Maggi associated itself with main stream television programme and advertised heavily on kids programme and channels! 1fter its advertisements with taglines like mummy bhookh lagi hai) bas do minute" and fast to cook good to eat MaggiIs popularity became highly attributed to its e?tremely high appeal to children"! 1s a result) MaggiIs annual growth reportedly touched 1;O during its initial years!

?ARI9US (R9DUC<S
#he product mi? of Maggi is divided into various categories defined below! #he company has launched various products under each category as mentioned below! 1! =oodles Maggi 2$Minute =oodle . Masala ) 3hicken) 3urry and #omato2 Maggi /al 1tta =oodles . Sambhar taste2 Vegetable 1tta Maggi =oodles Maggi +ice =oodles .Gemon Masala) 3hilly 3how and Shahi *ulao2 Maggi 3uppa mania .Masala yo) 3hilli chow yo2 2! Sauces #eekha masala #omoto chatpat &mli khata mitha #omato ketchup Fot and sweet #omato pudina Einger) Earlic 4 3oriander Maggi :riental 3hilli Earlic Einger) Earlic 4 3oriander %! Maggi *ichko 9! Soups Fealthy 3hef Style - 3ream Mushroom - Sweet Sour #omato =oodles - #angy #omato Vegetables Fome Style - 3reamy 3hicken - Mi?ed Vegetable - +ich #omato 3hinese Style - 3hinese Fot Sour 3hicken - 3hinese Sweet 3orn 3hicken - 3hinese Sweet 3orn Vegetables - 3hinese Fot 4 Sour Vegetables

;!Maggi soup sanjivni 1mla -adam Spinach /al #omato <! Maggi bhuna masala -huna masala for gravy dishes -huna masala for vegetable dal A!Maggi magic cubes 3hicken Vegetarian masala

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<AS<; A8D (R;";R;8C;S 9" C98SUM;RS

Fealth is the flavour of the season! Mood companies in &ndia are growing aware of the increasingly changing consumption trends and taste preferences among the &ndian junta! =o surprises) but this is the reason more and more companies are coming up .or are actually re$marketing2 with products that are healthy! #ake for e?ample 3oke and *epsi; both have already started looking into the non$carbonated drinks category section! Maggi first introduced in the market Maggi 1tta =oodles 0 which it claimed was a healthy food as it was made of wheat flour followed by soups! =estle &ndia) in an effort to carry on with its trend of providing the &ndian consumers healthy food recently introduced a range of Fealthy Soups! #he entire range consists of the following; maggi tomato) mi?ed vegetable) tomato vegetable) mushroom) chicken) sweet corn chicken and hot and sour vegetable! #he product is priced at +s 2; for A5 grams! Maggi became successful because it understood consumers ! #he brand never wanted to change &ndian consumerCs habit! &t did not had ambitions about changing &ndianCs breakfast or dinner preferences! What Maggi did was to slowly attach itself to &ndian consumerCs need without disruption! Maggi was also closely watching consumer preferences!When consumers wanted healthy food) Maggi launched 1tta =oodle variants that was healthy ! More importantly this move addressed the concerns of Fomemakers! #he brand e?tended itself to multiple segment but without diluting the core brand eDuity! Maggi over these years have made lot of mistakes! &t made mistakes because the brand was willing to e?periment! More importantly the brand learned from those mistakes and corrected itself! Maggi also invested heavily in brand building! #he campaigns for one of MaggiCs 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 Hfast to cook and good to eatI promise!

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#o commemorate its successful journey through a Duarter of a century in the worldIs 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! 1long 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! =estle also introduced a website Meandmerimaggi!in for engaging with them! #he 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 -huna Masala and Maggi *a((ta! So far focussed on urban consumers) the company also made a pitch for rural consumers by launching Maggi +asile 3how noodles at an inviting price of +s9! 1gain) local tastes and recipes have been at the core of all these marketing innovations! 3reating delight and happiness in everyday meals is not just about providing tasty food! &t is about providing taste and health in a convenient combination)" says Shivani Fegde) general manager) foods!

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Demography 6
12 1ge and se?7 Maggi products are consumed by people of different age groups! #hey are consumed by children) teenagers) adults as well as old people! #hey are consumed by both genders male and female!

22 &ncome 7$ Maggi products are available at reasonable prices! So they are consumed by the lower) middle as well as the higher class!

%2 +eligion and nationality7$ Maggi products are famous and are consumed by people of all religions and nationality!

(sychography 6

12 1ttitude7$ 3onsumers of maggi have a positive attitude towards the product which makes it the leader in the market! Maggi dominates the market!

22 Gifestyle7$ Gifestyle determines the way of living of people! &t describes how a consumer leads his life! Maggi products are consumed by all!

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MAR$;< SBAR;

Maggi's Market Share in Ketchup Category

Maggi has a

45% 55%

Maggi Others

mar-et share of '.C )hich is a high percentage5 It dominates the mar-et in the -etchup segment5

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Maggi's Market Share in Noodles Category

20% Maggi Others 80%

Maggi has a arket share o! as high as 80% in the noodles seg ent" #t do inates the arket" #t is the leader in this seg ent"

S39< A8A:!SIS 9" MA##I BRA8D

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#he SW:# analysis of Maggi brand clearly indicates the strengths of Maggi as a -rand in &ndian market! #he -rand was found to be a leader in its category of =oodles) with strong customer loyalty! &ntensive distribution of Maggi as a -rand was seen in urban areas of the country! #he major threats of the brand as shown in the figure below indicates that Maggi has made several attempts to revamp itself as a HFealthy *roduct" but till date its perseverance towards the tag line is low by the consumers! #he brand is in the growth stage of product life cycle with a strong inclination towards the maturity stage!

S<R;8#<B Market leader in their segment Strong brand loyal consumer base Wide range of distribution channel *roduct according to the need of &ndian consumer &nnovative *roduct

3;A$8;SS *roduct are dependent on each other =ot so much presence in rural market

S39< A8A:!SIS

9((9R<U8I<! &ncreasing number of working youth *roduct has been acceptable in youth category Shift to rural market 3hanging preference of consumer towards 3hinese food and fast food! 3an foray into other food markets with its strong -rand name

<BR;A< *rice war with competitors! Strong presence of regional competitors 3onsumers donIt perceive it as a Fealthy *roduct"

R;S;ARCB M;<B9D9:9#! 6

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#o understand the influence of Maggi as a brand on consumers mind set!

Sources of -rand eDuity of Maggi like -rand awareness) -rand image) -rand association) -rand recall!

#o understand the -rand performance of Maggi products!

#o understand -rand &magery) -rand Luality perceived by customers) -rand credibility) consideration) superiority and feelings!

#o know the medium of media through which they became aware of Maggi!

M$%&O'O(O)*

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#he research will be carried out in the form of a survey! #his will include primary research in addition to secondary research as stated below! #he survey research method will be descriptive research design! Pach respondent will be interviewed through a Luestionnaire! #he sample will be selected by a simple random sampling method! #he survey will address the following information area7 #n!or ation +reas, #he objective as spelt out can be elaborated into specific information areas to be studied! Fow do customers perceive Maggi as a stable brand) their perception of noodles and how do they associate themselves with MaggiQ 1re the consumers aware of Maggi -rand or they associate noodles with some other brandQ 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 freDuently buyQ 1re the consumers willing to accept Maggi brand e?tensions to some other products like chocolate) juices) chips etcQ

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L 12 1re you a consumer of MaggiQ R ,es R =o

L 22 What comes first in your mind when you hear the word Maggi Q =oodles Mast food Snacks =one of these

L %2 what is the brand that comes to your mind when we say the word noodlesQ Maggi #op +amen Surya =oodles 1nil =oodles L 92 +ank the following Maggi products w!r!t! freDuency of purchase with 1 being the highest rank +1=' =oodles 'etchup Soup *ickles 3ubes SSSSSSSSS SSSSSSSSS SSSSSSSSS SSSSSSSSS SSSSSSSSS

L ;2 With what products would you associate the brand MaggiQ 'etchup =oodles Soup Masala L <2 :n a scale of 1 to ; rate Maggi on the following parameters #aste Variety8Mlavours Fygiene8*urity 1vailability *ackaging .S'Ks2 SSSSSSSSSSSS SSSSSSSSSSSS SSSSSSSSSSSS SSSSSSSSSSSS SSSSSSSSSSSS

L A2 +ank the categories which Maggi should look in future in order of your importance 7

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3hocolates Salted *otato 3hips Mruit Buices *rocessed foods.+eady to use pastes) masalas2 :thers . *lease mention2

SSSSSSSSSSSSS SSSSSSSSSSSSS SSSSSSSSSSSSS SSSSSSSSSSSS SSSSSSSSSSSSS

L @2 Fow do you perceive Maggi productsQ Eood for health! +eady to eat! Bunk food #asty 8 Mun eating

L 62 Which Maggi products in noodles category do you regularly buyQ .+epositioning awareness2 Maggi masala Maggi vegetable atta noodles Maggi dal atta noodles Maggi rice noodles mania :thers

L 152 ,ou came to know about Maggi from7 =ewspapers +adio #!V advertisements Word of mouth :ther source

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L 112 /o you remember any of the #!V! advertisements of Maggi #omato 'etchupQ R ,es R =o

L 122 /o you perceive Maggi noodles as a healthy productQ ,es =o L 1%2 &f =o then your suggestions for improvement as a healthy productQ SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S SS S S S S S S S S S S S S S S S

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L 12 1re you a consumer of MaggiQ R ,es R =o

1nalysis7 #he survey suggested that out of 25 consumers all 25 are consumers of maggi products! Maggi is Duite famous with the different types of consumers in the market! :ur survey took the sample of consumers in general!

L 22 What comes first in your mind when you hear the word Maggi Q =oodles Mast food Snacks =one of these

1nalysis7 #he survey suggested that 19 out of 25 consumers associated maggi with noodles! % for snacks and masala each! *eople are familiar with maggi as a brand for noodles in majority!

L %2 what is the brand that comes to your mind when we say the word noodlesQ Maggi #op +amen Surya =oodles 1nil =oodles 1nalysis7 #he survey suggested that Maggi is the most popular brand with consumers of noodles! &t suggests that 1@ out of 25 consumers associate noodles with maggi!

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L 92 +ank the following Maggi products w!r!t! freDuency of purchase with 1 being the highest rank +1=' =oodles 'etchup Soup *ickles 3ubes SSSSSSSSS SSSSSSSSS SSSSSSSSS SSSSSSSSS SSSSSSSSS

1nalysis7 Most of the consumers have ranked noodles as 1! *eople purchase maggi noodles in majority! #he freDuency of the purchase of maggi noodles is high!

L ;2 With what products would you associate the brand MaggiQ 'etchup =oodles Soup Masala 1nalysis7 #he survey suggested that 12 out of 25 people associated the brand maggi with noodles! < consumers associated it with masala! 2 consumers associate the brand with soup and 1 with ketchup! L <2 :n a scale of 1 to ; rate Maggi on the following parameters #aste Variety8Mlavours Fygiene8*urity 1vailability *ackaging .S'Ks2

SSSSSSSSSSSS SSSSSSSSSSSS SSSSSSSSSSSS SSSSSSSSSSSS SSSSSSSSSSSS

1nalysis7 #he products of maggi have been rated well above % in the above parameters by most of the consumers!

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L A2 +ank the categories which Maggi should look in future in order of your importance 7 3hocolates Salted *otato 3hips Mruit Buices *rocessed foods.+eady to use pastes) masalas2 :thers . *lease mention2 SSSSSSSSSSSSS SSSSSSSSSSSSS SSSSSSSSSSSSS SSSSSSSSSSSS SSSSSSSSSSSSS

1nalysis7 1ccording to the survey) maggi should look for salted potato chips in future as it is highly demanded by the people in the market!

L @2 Fow do you perceive Maggi productsQ Eood for health! +eady to eat! Bunk food #asty 8 Mun eating

1nalysis7 #he survey suggests that most of the consumers perceive maggi products as being good for health!

L 62 Which Maggi products in noodles category do you regularly buyQ .+epositioning awareness2 Maggi masala

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Maggi vegetable atta noodles Maggi dal atta noodles Maggi rice noodles mania :thers

1nalysis7 #he survey suggested that most of the consumers regularly buy maggi vegetable atta noodles while a few of them preferred maggi masala noodles!

L 152 ,ou came to know about Maggi from7 =ewspapers +adio #!V advertisements Word of mouth :ther source

1nalysis7 #he survey suggested that a majority of the people came to know about maggi through television advertisements! Maggi advertisements are Duite famous with the consumers!

L 112 /o you remember any of the #!V! advertisements of Maggi #omato 'etchupQ R ,es R =o

1nalysis7 #he survey suggested that the advertisement of maggi tomato ketchup is remembered by the consumers! 12 out of 25 consumers remember the advertisement of tomato ketchup!

L 122 /o you perceive Maggi noodles as a healthy productQ ,es =o

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1nalysis7 #he survey suggested that majority of the consumers perceive maggi noodles as a healthy product! #he survey suggests that 25 out of 25 consumers perceive maggi noodles as a healthy product!

L 1%2 &f =o then your suggestions for improvement as a healthy productQ SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S SS S S S S S S S S S S S S S S S 1nalysis7 #he survey suggests that 25 out of 25 consumers perceive maggi noodles as a healthy product and need no improvement as a healthy product!

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