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Marketing Research On Maggi 1
Marketing Research On Maggi 1
The Fast Moving Consumer Goods (FMCG) industry in India is one of the
largest sectors in the country and over the years has been growing at a very
steady pace. The sector consists of consumer non-durable products which
broadly consists, personal care, household care and food & beverages. The
Indian FMCG industry is largely classified as organised and unorganised. This
sector is also buoyed by intense competition. Besides competition, this industry
is also marked by a robust distribution network coupled with increasing influx
of MNCs across the entire value chain. This sector continues to remain highly
fragmented.
Industry Classification
The FMCG industry is volume driven and is characterised by low margins. The
products are branded and backed by marketing, heavy advertising, slick
packaging and strong distribution networks. The FMCG segment can be
classified under the premium segment and popular segment. The premium
segment caters mostly to the higher/upper middle class which is not as price
sensitive apart from being brand conscious. The price sensitive popular or mass
segment consists of consumers belonging mainly to the semi-urban or rural
areas who are not particularly brand conscious. Products sold in the popular
FMCG companies are behind the biggest brands in the world. FMCG is all
about names, the products which everyone recognises from trips to the
supermarket or from ads on television. The brands that make up this sector are
the high profile ones, the ones everybody knows and loves. Think Coca-Cola,
Dettol and Dove. This is an industry that puts you in living rooms, kitchens and
bathrooms across the globe.
The FMCG industry changes fast and is constantly evolving. It's fair to say
there is never a dull moment in FMCG. From the pace at which goods leave the
shelves to the rate of product innovation and career progression, things move
quickly. And it doesn't end there. The brands themselves are changing just as
quickly. 40% of brands on the top 100 list twenty years ago have already been
replaced by new names today.
FMCG companies can beat the recession. This is an industry that has proved
itself very resilient to recession – with the majority of companies in the sector
weathering the financial storm in a way that very few others have managed.
Why? Well, consumers will always need to buy the products created by FMCG
The FMCG industry thinks bigger – and better. This is an industry that
offers things on a whole new scale. Where else could you find yourself handling
$150 million accounts? Working in FMCG gives you the chance to be a part of
some global success stories and influence the way consumers shop for products.
FMCG firms are always thinking of the next great discovery or innovation –
always developing and ever-changing to meet consumer's needs.
Nestle is the world's leading nutrition, health and Wellness Company. Their
mission of "Good Food, Good Life" is to provide consumers with the best
tasting, most nutritious choices in a wide range of food and beverage categories
and eating occasions, from morning to night.
They believe that leadership is about behaviour, and they recognise that trust is
earned over a long period of time by consistently delivering on their promises.
Nestlé believes that it is only possible to create long-term sustainable value for
their shareholders if their behaviour, strategies and operations also create value
for the communities where they operate, for their business partners and of
course, for their consumers. They call this 'creating shared value'.
The Nestlé Corporate Business Principles are at the basis of their company’s
culture, developed over 140 years, which reflects the ideas of fairness, honesty
and long-term thinking.
Nestlé can trace its origins back to 1866, when the first European condensed
milk factory was opened in Cham, Switzerland, by the Anglo-Swiss Condensed
Milk Company. One year later, Henri Nestlé, a trained pharmacist, launched one
of the world’s first prepared infant cereals ‘Farine lactée’ in Vevey, Switzerland.
The two companies merged in 1905 to become the Nestlé we know today,
with headquarters still based in the Swiss town of Vevey. They employ around
328 000 people and have factories or operations in almost every country in the
world. Nestlé sales for 2011 were almost CHF 83.7 bn.
"Good Food, Good Life" is the promise they commit to everyday, everywhere
– to enhance lives, throughout life, with good food and beverages.
Ever since Henri Nestlé invented Farine Lactée to alleviate infant mortality,
Nestlé has been dedicated to enhancing lives. They strive to help consumers
care for themselves and their families by offering tastier and healthier choices.
Nestle is the largest food company in the world. It is present in all five
continents, has an annual turnover of 74.7 billion Swiss Frances. There are 509
factories are running in 83 countries, having 231,000 employs
Company Mission
At Nestle, they believe that research can help them to make better food,
so that people live a better life.
Good food is the primary source of good health, so they are trying to
make good food. To provide fresh and pure products to the customers,
they introduced (SHE) Safety, Health and environment policy to protect
health of their employs and keep clean their surrounding environment.
Company Vision
Vision of Nestle Milkpak Company is to expand business according to
the increasing demand of market.
Ever since its launch in India in 1983, this brand has become synonymous
with noodles. The bright red and yellow colours of the packet with the
brilliant blue “2-minute Noodles” printed on it has found a place on every
kitchen. Over the years, Maggi has grown as a brand and positioned itself as
a “Fast to cook! Good to Eat! “ Food product.
The history of this brand traces back to the 19th century when industrial
revolution in Switzerland created factory jobs for women, who were
therefore left with very little time to prepare meals. Due to this growing
problem Swiss Public Welfare Society asked a miller named Julius Maggi to
create a vegetable food product that would be quick to prepare and easy to
digest. Julius, the son of an Italian immigrant came up with a formula to
bring added taste to meals in 1863. Soon after he was commissioned by the
Swiss Public Welfare Society, he came up with two instant pea soups & a
bean soup- the first launch of 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.
Further the MAGGI 2-MINUTE Noodles has been renovated to provide 20%
of the RDA1 of Calcium and Protein for the core target group building on
the nutrition proposition “Taste bhi health bhi”. The company could have
Nestle is a well-known company all over the world and Pakistan. The
company basically deals in food products as their logo says “Good Food,
Good Life”.
The width of a product mix refers to how many different product lines the
company carries.
The length of a product mix refers to the total number of items in the mix.
The depth of a product mix refers to how many variants are offered of
each product in the line.
Milk Products:-
Milkpak Butter
Nestle Everyday
Nestle Nido
Shri Yogendra Sagar Institute of Technology and Science Page 10
Chocolate Drinks:-
Milo power
Milo RTD
Coffee:-
Nescafe Classic
Fruit Drinks:-
Frost
Lactogen
Cereals
Nestle Rice
Nestle Wheat
Neslac
Culinary Products:-
Maggi Noodles
Confectionery:-
Nestle Milkpak
Polo Mint
Kitkat
Water:-
COFFEE-MATE® LIBBY'S®
NESTEA® NESTLÉ®
CARNATION®
NESCAFÉ® MILANO
MAGGI Sauces
Shri Yogendra Sagar Institute of Technology and Science Page 15
MAGGI Pichkoo
MAGGI Masala-ae-Magic
A. Geographic Segmentation:
The market is divided into different geographical units such as nations, cities,
states, regions, neighbourhoods etc.
City: Class
B. Demographic Segmentation:
The market is divided on the basis of variables such as age, family size, family
life cycle, gender, income, occupation, education, religion etc. Demographic
variables are easy to measure and are directly associated with customer.
C. Psychographic Segmentation:
D. Behavioural segmentation:
Buyers are divided on the basis of their knowledge of attitude toward, use of, or
response to a product. The behavioural variables are as follows:
Full Market Coverage: The firm attempts to serve all customer groups
with all products they may need.
Office Goers and working women: The Company also targeted this
segment people because they were the one who needs refreshment
time to time because of hectic schedule and with would take their
minimal time. So by keeping this aspect into consideration, the
company introduce the Cuppa mania, which is a type of noodle which
takes less time to cook and satisfy the hunger as well.
To deal with this Maggi has to position itself as a differentiated product. The
market is very sensitive to taste and rejects any flavour it dislikes with Maggi
having learnt it the hard way, thus the product cannot be greatly differentiated
with on basis of taste.
On the other hand Maggi has to deal with the negative perception of Maggi has
of being unhealthy in an increasingly health conscious market, a major threat in
the current scenario.
Marketing Mix
A product is anything that can be offered to the market to satisfy a want or need,
including physical goods, services, experiences, events, persons, places,
properties, organizations, information and ideas.
Nestle unleashed brand maggi in India Almost 25 years ago in 1983 with launch
of its traditional 2 minutes noodles in its masala, tomato and chicken flavours,
followed by its curry flavour some years down the line.
Maggi was launched in India at the time when instant noodle was not that well
known a category.
When nestle India launched maggi in country, it used the tagline, ‘fast to cook
and good to eat’, to not only promote the product’ but also to educate the ever
growing aspirant consumer about the advantages of using it.
An offering that exemplifies ‘taste bhi health bhi’, MAGGI vegetable atta
noodles is tasty because it is loaded with everyone’s favourites MAGGI
‘masala’ and healthy because it now has more real vegetables and is packed
with the power of fibre. 85g of maggi vegetable atta noodles provides dietary
fibre equal to 3 prepared ratios, 20g each.
MAGGI Vegetable Multigrainz Noodle is made with Ragi, Corn, Jowar and
Wheat. It offers the consumer multi-‘gun’ as it is a source of Protein, Calcium
and Fibre and has added vegetables. It also provides the spicy test to their
customers. The inspiration for the product comes from the growing consumer
Maggi cuppa mania is a combination of all the above. In an easy to carry on-
the-go cup format, MAGGI cuppa mania comes in two mouth watering variants
– masala yo! And chilly chow yo!
It is packed with real vegetables and the goodness of calcium, just add garam
paani to the noodles and voila! A cupful of delicious MAGGI cuppa mania is
ready for you to eat.
These are the prices which are set by the company for the different flavours of
MAGGI Noodles.
Masala 50 5
Masala 100 10
Masala 200 20
Masala 400 38
Masala 600 54
Masala 800 72
Chicken 100 10
Curry 100 10
Tomato 100 10
As we talk about maggi, it is very popular now a day in all over the world and
its main customers are children and youngsters. As we know that MAGGI
Noodles price is not very high, but there are so many competitors in the market
so company cannot set price different from their competitors. Currently
6.3 PLACE
To keep up with the growing trends in the Noodles sector, an intensive dealer-
distributor network is desired. Maggi has a well established distribution
network.
Maggi Factory
Factory
Warehouse
Agent
Distributors
Wholesalers
Direct Retailers
End Consumers
But in order to strengthen the distribution, NIL should expand its market to
Rural India with products targeted to the market. Thus this can be one of the
way by which they can increase its volume of sales. So major focus should be
done to this market as well.
6.4 PROMOTION
Advertising
Print media, Television, radio are effective ways to entice customers and
make them aware of the brand’s existence.
Taglines also increase the recall value of the brand amongst the customers.
Word of mouth
One satisfied customer brings ten more customers along with him whereas
one dissatisfied customer takes away ten more customers. That’s the
importance of word of mouth. Positive word of mouth goes a long way in
promoting brands amongst the customers.
Maggi has faced lot of hurdles in its journey in India. The basic problem the
brand faced is the Indian Psyche. Initially Nestle tried to position the Noodles in
the platform of convenience targeting the working women. However, the sales
of Maggi was not picking up despite of heavy Media Advertising.
Print Ads
Maggi does not focus heavily on print media during its launch since its initial
target audience was mothers and kids. But later on some advertisements in the
print media were used to highlight the convenience factor of Maggi.
Sales promotion
Exchange schemes
Price-off offer
Coupons
Public relation
RESULTS OF PR ACTIVITY:
Recently, again, they have started Maggi fan club. This time it is
operating online and they are providing user name and password.
Displays
High
STARS:
Stars is the portion of the market where the market position and growth both are
very high thus it is very good position of the company addressed by the product-
MAGGI Veg Atta Noodles.
Business in these areas states the weak market share with high growth rate. Here
it requires the high cash requirement to come into the stars areas. Thus we can
take the product is MAGGI Dal Atta Noodles.
CASH COWS:
Cash cows are with the strong market position and low growth rate. Such
markets are usually in a position to make their product favourite with the low
price in the market. Here the example is MAGGI Masala Flavours which is very
popular in today’s market.
DOGS:
Here the marketing position and market growth rate both are very low and it is
not profitable for the company. Thus company must have to stop the production
of the products coming under this area.
The present study constitutes the comparison of the 4 Ps of the Maggi of Nestle
India Ltd.
This will be done from the secondary data collected from the websites and the
food consultants.
1. SURVEY METHODS
2. QUESTIONNAIRE DESIGN
3. SAMPLING DESIGN
The sampling frame is defined in terms of who the respondents are can answer
the questions that need to be addressed. First we defined our target population
Our survey is limited to the Delhi NCR region. Responses were collected form
Noida, Greater Noida, South Delhi, Faridabad.
5. SAMPLE SIZE
While planning the survey we estimated the sample size of 150 respondents. We
have surveyed 130 people who lie within our target population. The survey
consists of more number of females (more than 60% of the total sample size).
Most of the respondents are from the middle and upper middle class.
DATA ANALYSIS
News paper 10
Radio 3
T.v. ad 90
Word of mouth 15
Posters 10
Other 2
This graph reveals that T.V. Advertisements are the major source of information
regarding Maggi and so we can also infer that they have been successful in their
promotion strategies involving electronic media.
2. Remember any TV ad
Yes 114
No 16
This graph facilitates us in realizing that majority of the people are aware of the
brand Maggi as they remember TV ads so it can be inferred that Maggi’s
promotional team has far been successful in positioning its Maggi in the mind
of the people.
Yes 41
No 89
Inference:
Nearby store 78
Retail store 51
Other 1
Inference:
Every week 11
Every fortnight 12
Every month 63
Occasionally 44
Inference:
This graph depicts that the frequency of buying every month of maggi is
maximum.
Maggi though has been able to differentiate itself from other Noodles, Maggi
1. SAMPLING ERROR:
The sample of our survey is confined to the respondents from the middle class
and the upper middle class.
The sample size of 130 is not the true representative of our sampling frame and
result in skewed responses. The locations under taken for the survey is also a
constrain because the result of the survey is limited to some regions and cannot
be used for further analysis and implementation.
2. RESPONSE ERRORS:
These errors arise when the respondents give inaccurate or incomplete answers.
A major problem is faced in the survey involved the comparative ratings of
various attributes for tomato ketchup. Many of the respondents were not very
willing to mark their income group.
All the questions in the questionnaire were closed-ended to avoid any confusion
from the respondents end. But a drawback of this approach is that there was
some biasness in capturing the responses of the respondents. The reasons for
such inaccuracy could be because of unfamiliarity, boredom, faulty recall and
the question format.
4. RECORDING ERROR:
This type of error arise dues to errors in hearing, interpreting, and recording the
answers given by the respondents. For example, a respondent indicates a
moderate response for the attributes of the maggi, but the interviewer
misinterprets that to a positive response.
These errors occur while raw data from questionnaire are transformed into
research findings. For example, if the outliers are not filtered from the data
during the statistical procedure, result in incorrect interpretation and findings.
http://www.nestle.in/brands/pdca/Pages/MAGGICUPPAMANIA.aspx
http://virtualaccuracy.com/2007/10/definition-of-marketing-mix-product-price-place-
promotion/
http://www.managementstudyguide.com/marketing-mix.htm
www.slideshare.net/parves190/maggi-noodles-8279990
http://www.scribd.com/doc/10552265/Nestle
1. Name:
……………………………………………………………………………
2. Occupation:
………………………………………………………………………………….
Shri Yogendra Sagar Institute of Technology and Science Page 52
3. Family monthly income:
a) Below 25000
b) 25000-50000
c) 50000-1 lac
4. Location:
……………………………………………………………………………………
….
5. Age:
a) 15-25
b) 25-35
c) 35-45
d) 45 and above
6. Family type:
a) Joint
b) Nuclear
a) Yes
b) No
a) Maggi
b) Yeppiiee
c) Heinz
d) Sizwan
e) Tops
f) Other ....
…………………………………………………………………………
a) Yes
b) No
c) If no , it is because :
a. Lack of awareness
e. Others
………………………………………………………………………
…………….
a) Newspaper advertisements
b) Radio
c) T.V. advertisements
d) Word of mouth
e) Point of sale
f) Other
……………………………………………………………………………..
a) Yes
b) No
b) No
14. Have you tried new variants of Maggi Tomato Ketchup after viewing
the advertisements?
a) Yes
b) No
a) High
b) Medium
c) Low
16. Which of the offers available influence you the most to purchase
Maggi?
a) Discounts offer
c) Other
……………………………………………………………………………
a) Yes
b) No
a) Nearby store
b) Retail store
c) Whole seller
a) Every week
c) Every month
d) Occasionally