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1.

INTRODUCTION OF FMCG INDUSTRY

What is the FMCG Industry?


FMCG industry, alternatively called as CPG (Consumer packaged goods)
industry primarily deals with the production, distribution and marketing of
consumer packaged goods. The Fast Moving Consumer Goods (FMCG) are
those consumables which are normally consumed by the consumers at a regular
interval. Some of the prime activities of FMCG industry are selling, marketing,
financing, purchasing, etc. The industry also engaged in operations, supply
chain, production and general management.

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

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segment have considerably lower prices than their premium counterparts.
Following are the segment-wise product details along with the major players:

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The facts about the FMCG Industry
FMCG, otherwise known as CPG, is one of the biggest industries in the world
and there are a lot of facts that stand the FMCG industry apart as a career
choice:

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 firms thrive on employee and customer retention. Employee


investment is a big part of the ethos of the FMCG world. Perhaps it's because
we understand the importance of loyalty. Customer loyalty can make or break a
brand. Take Twinning’s, for example – a century after they entered the top 100
brand list, they are still there and going strong. So it makes sense for FMCG
companies to encourage the loyalty of their employees too.

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

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companies. They may not buy big items like refrigerators or cars in a recession,
but floors still need to be cleaned, clothes need to be laundered and aches and
pains still need to be soothed.

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.

FMCG has a history of delivering what consumers want. Some FMCG


companies' roots are over two centuries old – driving the industry to a value of
$570.1 billion. In short, to quote Sam Walton, founder of Wal-Mart: "High
expectations are the key to everything"

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2. INTRODUCTION OF NESTLE COMPANY

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.

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Their dedication to great tasting, healthier and trusted products is tied to their
respect for the environment and the people they work with.

Business of the Nestle

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.

 As per their company vision in 2020 production capacity of all plants


working in Pakistan is being increased. So extension of Kabirwala Plant
is the example of their company vision.

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3. INTRODUCTION TO MAGGI NOODLES

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.

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However in India (the largest consumer of Maggi noodles in the world!) it
was launched in 1980 by Nestle group of companies. Maggie had merged
with Nestle family in 1947. When launched it had to face a stiff competition
from the ready to eat snack segments like biscuits, wafers etc. Also it had
other competitor the so called home made snacks which are till today
considered healthy and hygienic. Hence to capture the market it was
positioned as a hygienic home made snack, a smart move. But still this
didn’t work, as it was targeted towards the wrong target group, the working
women. After conducting an extensive research, the firm found that the
children were the biggest consumers of Maggi noodles. Quickly a strategy
was developed to capture the kids segment with various tools of sales
promotion like pencils, fun books, Maggi clubs which worked wonders for
it. No doubt the ads of Maggi have shown a hungry kid saying “Mummy
bhookh lagi hai” to which his mom replies “Bas do minute!” and soon he
is happily eating Maggie noodles.

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

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easily positioned the product as a meal, but did not, as a study had shown
that Indian mentality did not accept anything other than rice or roti as meal.
They made it a easy to cook snack that could be prepared in just two
minutes. The formula clicked well and Maggi became a brand name.

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4. PRODUCT MIX, BRANDS AND PRODUCT
OFFERING

4.1 PRODUCTS MIX OF NESTLE:


A product mix is the set of all products and items, a particular seller offers
for sale. A product mix consists of various product lines. A company’s
product mix has a certain width, length, depth and consistency.

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.

Nestlé’s major products lines:

 Milk Products:-

 Nestle Milkpak UHT Milk

 Milkpak Butter

 Milkpak UHT Cream

 Milkpak Desi Ghee

 Nestle Everyday

 Nestle Nido
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 Chocolate Drinks:-

 Milo power

 Milo RTD

 Coffee:-

 Nescafe Classic

 Fruit Drinks:-

 Frost

 Nestle Orange Juice

 Dietetic & Infant Products:-

 Lactogen

 Cereals

 Nestle Rice

 Nestle Wheat

 Neslac

 Culinary Products:-

 Maggi Noodles

o Maggi Vegetable Multigrainz Noodles

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o Maggi 2-Minute Noodles

o Maggi Vegetable Atta Noodles

o Maggi Cuppa Mania

 Maggi Cold Sauces

 Confectionery:-

 Nestle Milkpak

 Polo Mint

 Kitkat

 Water:-

 Nestle Pure Life

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4.2 BRANDS OF NESTLE
Nestlé offers quality culinary and beverage products through a portfolio of
brands operators and consumers count on for great taste, consistency, and
convenience.

Major Brands of Nestle are as follows:

MINOR'S® HOT POCKETS®

CHEF-MATE® LEAN POCKETS®

STOUFFER'S® NESTLÉ® HOT COCOA

STOUFFER'S® LEAN CUISINE® MAGGI®

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NESCAFÉ® NESTLÉ® TOLL HOUSE®

COFFEE-MATE® LIBBY'S®

NESTEA® NESTLÉ®
CARNATION®

NESTLÉ® DESSERT INGREDIENTS TRIO®

NESCAFÉ® MILANO

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4.3 PRODUCTS OFFERING BY MAGGI

 MAGGI Vegetable Multigrainz Noodles

 MAGGI 2-Minute Noodles

 MAGGI Vegetable Atta Noodles

 MAGGI Cuppa Mania

 MAGGI Healthy Soups

 Sanjeevni MAGGI Healthy Cup Soup

 MAGGI Sauces
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 MAGGI Pichkoo

 MAGGI MAGIC Cubes

 MAGGI Bhuna Masala

 MAGGI Coconut Milk Powder

 MAGGI Pizza Mazza

 MAGGI Masala-ae-Magic

 MAGGI NUTRI-LICIOUS PAZZTA


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5. MARKET SEGMENTATION, TARGETING
AND POSITIONING

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 Segmentation is the process of grouping people or
organizations within a market according to similar needs,
characteristics, or behaviours.

 Targeting is the actual selection of the segment you want to


serve the target market is the group of people or organizations
whose needs a product is specifically designed to satisfy

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 Positioning is the use of marketing to enable people to form a
mental image of your product in their minds (relative to other
products)

5.1 Bases for Segmenting Consumer Markets

A. Geographic Segmentation:

The market is divided into different geographical units such as nations, cities,
states, regions, neighbourhoods etc.

 Region: South India, Western Region, North, East

 City: Class

 Rural, urban, semi urban areas

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:

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Here buyers are divided into different groups on the basis of
psychological/personality traits, lifestyles or values.

 Lifestyle: Culture-oriented, sports oriented, outdoor oriented.


Classification is done on three parameters: AIO Activities, lifestyles or
values.

 Personality: Compulsive, gregarious, authoritarian, ambitious

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:

 Usage rate: Light, Medium, Heavy

 Loyalty status: None, medium, strong, absolute

 Readiness stage: Unaware, aware, informed, desirous, intending to buy

 Attitude toward product: Enthusiastic, positive, indifferent, negative,


hostile

Evaluating and Selecting Market Segments

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Five patterns of target market selection that can be followed are:

 Single Segment Concentration: Concentrated Marketing where the


firms gain a can strong knowledge of segments needs and acquires a
strong market presence.

 Selective Specialization: A firm selects a number of segments. Each


objectively attractive and appropriate, there may be little or no synergy
between the segment.

 Product Specialization: The firm makes a certain product that it sells to


several different market segments.

 Market Specialization: The firm concentrates on serving many needs of


a particular customer.

 Full Market Coverage: The firm attempts to serve all customer groups
with all products they may need.

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5.2 Target segment of Maggi noodles

Maggi 2 Minute Instant Noodles is already associated with convenience and


taste and is currently accepted as a valid filling snack between meals. Maggi
will continue to leverage its brand equity and target the following segments for
this product.

 Children and Teenagers’: This is a large segment and is Maggi’s


stronghold. The age group between 4 and 14 years has largely similar
tastes and is traditionally targeted by Maggi. These segments perceive
Maggi instant noodles as a welcome change in taste from the regular
Indian fare and they are fascinated by the curly shaped noodles. For
these segments innovative products also have novelty value, however,
certain dominant preferences emerge. Realizing this early, Maggi
shifted focus from the lady of the house to the end consumer i.e.
children themselves ending up as the market leader of the instant
noodles segment. Early buy in of this segment will help Maggi to sell
in other segments in future.

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 Studying Age: The studying age segment though not traditionally
targeted specifically has been devouring Maggi 2 minute noodles. The
proposition of convenience of cooking as well as that of a tasty filling
snack attracts this segment which due to erratic schedules keeps
missing their regular meals.

 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.

 Health Conscious People: The Company is also focusing on the


heath aspect. They introduce Veg atta noodle for health conscious
people. So they also launch Health Awareness campaign to educate
consumers about the benefits of health food. They also sponsor health
camps, publish health information and build awareness among the
masses.

5.3 Positioning of Maggi

Maggi 2 Minute Noodles will continue with its current positioning of


convenience and as a “fast to cook, good to eat” snack as this seems to be
working well.

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To prevent Top Ramen, the main competitor, from eating into its market share
some product innovation is required as otherwise Maggi may get stereotyped as
an unexciting product. Top Ramen is following a cost differentiation technique.

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.

Both these problems can be tackled by positioning Maggi as a snack with


nutritional value. The recent launch of “Veg Atta Noodles” and “Dal Atta
Noodles” with the promise of good nutritional value ventures in this area.

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6. FOUR P’s OF MARKETING MIX

Marketing Mix

A mixture of several ideas and plans followed by a marketing representative to


promote a particular product or brand is called marketing mix.

The marketer’s task is to device marketing activities and assembles fully


integrated marketing programs to create, communicate, and deliver value for
consumers. Marketing activities come in all forms. McCarthy classified these
activities as marketing mix tools of four broad kinds, which he called the four
Ps of marketing; product, price, place and promotion.

Elements of Marketing Mix

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6.1 PRODUCT
Definition:

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.

Maggi noodles Products in India:

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.

Products of Maggi Noodles:

A. MAGGI-2 minute noodles

B. MAGGI Vegetable atta Noodles

C. MAGGI Cuppa Mania

D. MAGGI Vegetable Multigrainz Noodle

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MAGGI 2-MINUTE Noodles is one of the largest & most loved snack food
brands that define the Instant Noodles category in India. We’ve recently
launched two new flavors in the short space of two months – Thrillin Curry &
Tricky Tomato Noodles. Blending Emotions with ingredients, the two new
flavors deliver strongly on “Taste Bhi Health Bhi”. It is now available in 5
delectable flavours: Masala, Chicken, Tricky Tomato, Thrillin Curry &
Romantic Capsica.

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.

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MAGGI, the pioneer and creator of ‘Taste Bhi Health BHi’ has introduced another great
testing and healthy variant in its popular range of MAGGI Noodles.

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

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preference for a healthier lifestyle and the deep understanding that magi has
developed about Indian food habits and culture.

Since in today’s fast-paced busy life, multitasking is a reality, you need


something that fits with your rushed lifestyle – a product which is tasty and
healthy, is convenient to prepare and eat and also satiates your hunger.

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.

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6.2 PRICE
Introduction:

Price of the company’s product is considered as one of the 4 P’s of marketing. It


is the most important aspect for any company in terms of decision making as it
directly affects the sales and profit of the company.

These are the prices which are set by the company for the different flavours of
MAGGI Noodles.

MAGGI 2 Minute Noodles Pack Size (gm) Price (Rs)

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

Vegetable Atta Noodles 100 13

Vegetable Atta Noodles 400 50

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

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company is having the tough competition with Sun feast Yuppie Noodles and
Foodles. One advantage of the company is that noodle’s packets are available
in different size comparing it with the brand called Top Ramen.

6.3 PLACE

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Place refers to the location where the products are available and can be sold or
purchased. Buyers can purchase products either from physical markets or from
virtual markets. In a physical market, buyers and sellers can physically meet and
interact with each other whereas in a virtual market buyers and sellers meet
through internet. Thus with the ease and options through which you make your
product or service available to your customers will have an effect on your sales
volumes.

Physical Distribution of Maggi noodles:

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 Distribution Network -

Maggi Factory

Factory
Warehouse

Agent

Distributors

Wholesalers

Direct Retailers

End Consumers

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Thus from the chart it can be said that the distribution network is well spread
almost everywhere in India, as it is easily available in all local stores, retail store
etc.

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

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Promotion refers to the various strategies and ideas implemented by the
marketers to make the end - users aware of their brand. Promotion includes
various techniques employed to promote and make a brand popular amongst the
masses.

Promotion can be through any of the following ways:

 Advertising

Print media, Television, radio are effective ways to entice customers and
make them aware of the brand’s existence.

Billboards, hoardings, banners installed intelligently at strategic locations like


heavy traffic areas, crossings, railway stations, bus stands attract the passing
individuals towards a particular brand.

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.

Initial Strategies of Maggi

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.

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To overcome this NIL conducted a research. NIL's promotions positioned the
noodles as a 'convenience product', for mothers & as a 'fun' product for children.
The noodles' tagline, 'Fast to Cook Good to Eat' was also in keeping with this
positioning.

 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.

 Events and Experiences

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Hold the Online Maggie Recipe Challenge, wherein innovative recipes with
Maggi Noodles as a base are invited. Winning entries are compiled into an e-
cookbook which is published online

 Sales promotion

The company also adopted sales promotion activity in order to achieve


following mentioned objectives.

 To introduce new products

 To attract new customers and retain the existing ones

 To maintain sales of seasonal products

 To meet the challenge of competition

Various Tools used

 Exchange schemes

 Price-off offer

 Coupons

 Scratch and win offer

 Money Back offer

Several initiatives were also taken by Maggi Noodles or Retailers sales


promotion. This can be as follows
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 Maggi was distributed free in schools and offices to promote trial

 Return gifts on empty packs

 Maggi fun book and stickers with funky animal facts.

 Public relation

 The Maggi Club - the children under 14 were invited by press


advertisements and distribution of leaflets to become a member of maggi
club by sending logos cut from 5 empty maggi wrappers. Maggi projected
it as “maggi clubbers are fun lovers” and intended to use it as reference
group.

 Benefits offered to maggi-clubbers are various games like Snap safari


game, Cap and mask sets, travel India game, Disney today comic. To
obtain each gift the member has to send 5 wrappers as purchase proof.

 Some special privileges were given to regular members time to time.

 The company also Organized Maggi school quizzes and sketching.

RESULTS OF PR ACTIVITY:

 Getting closer to regular customer.

 Boosted the sales.

 Making valuable direct marketing database.

 Recently, again, they have started Maggi fan club. This time it is
operating online and they are providing user name and password.

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Displays

6.5 The Portfolio Matrix applied in MAGGI Noodles Products:

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The Boston consulting group developed the business portfolio matrix-shows the
linkage between the growth rate of the firm and relative competitive position of
the firm, identified by the market share.

The Boston Consulting Group’s


Porfolio Matrix

High

Market STARS QUESTION MARKS


Growth (MAGGI Veg Atta Noodles) (MAGGI Dal Atta Noodles)
Rate

CASH COWS DOGS

(MAGGI Masala Flavour) (MAGGI Tomato ,curry


flavour)

Low Low High

Relative Market Share

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.

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QUESTION MARKS:

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.

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7. RESEARCH METHODOLOGY

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.

The steps involved in the research are:

1. SURVEY METHODS

Customer survey for primary data:

We asked the customers to rank the various attributes on a scale of very


important, important and not very important. To find-out the brand perception of
various brands, paired comparison between them is used.

2. QUESTIONNAIRE DESIGN

In designing the questionnaire we paid particular attention to the content and


wording of the questions. There were some questions which could be easily
framed. The questionnaire was meticulously prepared by identifying the various
variables i.e product, price, place, promotion. The same scale of yes/no and very
important, moderately important and least important was used to make the
respondents comfortable.

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

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as the people who are involved in the purchase of house hold items. Then we
used random sampling in conducting the survey.

Our sample mainly had females from different age groups.

4. LOCATION FOR THE SURVEY

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.

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8. DATA ANALYSIS AND RESULT
The data collected via survey was entered into the excel sheet. The results were
tabulated and analyzed. According to the analysis relevant inferences has been
made related to each question.

DATA ANALYSIS

1. Source of information about maggi

News paper 10

Radio 3

T.v. ad 90

Word of mouth 15

Posters 10

Other 2

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Inference:

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

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Inference:

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.

3. Celebrity endorsement promote buying

Yes 41

No 89

Inference:

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This graph infers that celebrity endorsements do not influence the buying
decision of majority consumers. It also infers that reference group does not
make any impact on consumer mind when we talk about maggi.

4. Maggi is purchased from

Nearby store 78

Retail store 51

Other 1

Inference:

This graph highlights the impact of organized retail on unorganized sector,


unorganized still being the dominant, as around 38% of consumer make
purchases of Maggi from retail store.

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6. Frequency of buying maggi

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.

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9. CONCLUSION

Maggi though has been able to differentiate itself from other Noodles, Maggi

Being taken as generic to Noodles is hampering other extended product


category. Competitors have high grounds to capture the market differentiating
then from being Maggi. It makes others possible product category vulnerable if
lunched under Maggi. So to avoid proliferation of brand and introduce new
products to capture opportunities in other snacks and ready to eat product
category NIL has to introduce new branding strategy. By doing so, NIL could
avoid the draw backs associated with the Maggi brand. It could position new
brand in competition with other competitor’s brand where there is no fit of
product with the Maggi brand.

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10. LIMITATIONS

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.

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3. CLOSED ENDED QUESTIONS:

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.

5. DATA ANALYSIS ERROR:

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.

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11. BIBLIOGRAPHY

 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

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SAMPLE COPY OF THE QUESTIONNAIRE

Objective:- to study the brand preference of maggi.

1. Name:
……………………………………………………………………………

2. Occupation:
………………………………………………………………………………….
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3. Family monthly income:

a) Below 25000

b) 25000-50000

c) 50000-1 lac

d) 1 lac and above

4. Location:
……………………………………………………………………………………
….

5. Age:

a) 15-25

b) 25-35

c) 35-45

d) 45 and above

6. Family type:

a) Joint

b) Nuclear

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7. Do you consume tomato ketchup?

a) Yes

b) No

8. Which brand you prefer the most?

a) Maggi

b) Yeppiiee

c) Heinz

d) Sizwan

e) Tops

f) Other ....
…………………………………………………………………………

9. Have you ever used maggi tomato ketchup?

a) Yes

b) No

c) If no , it is because :

a. Lack of awareness

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b. Lack of availability

c. You find it expensive

d. You don’t like the product

e. Others
………………………………………………………………………
…………….

11. You came to know about Maggi from :

a) Newspaper advertisements

b) Radio

c) T.V. advertisements

d) Word of mouth

e) Point of sale

f) Other
……………………………………………………………………………..

12. Do you remember any of the T.V. advertisements of Maggi

a) Yes

b) No

13. Does celebrity endorsement prompt you to purchase Maggi

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a) Yes

b) No

14. Have you tried new variants of Maggi Tomato Ketchup after viewing
the advertisements?

a) Yes

b) No

15. What is the level of discounts /offers available with Maggi ?

a) High

b) Medium

c) Low

16. Which of the offers available influence you the most to purchase
Maggi?

a) Discounts offer

b) Buy one get one

c) Other
……………………………………………………………………………

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17. Is Maggi easily available to you?

a) Yes

b) No

18. From where do you usually purchase Maggi?

a) Nearby store

b) Retail store

c) Whole seller

21. How frequently you purchase Maggi?

a) Every week

b) Every forth night

c) Every month

d) Occasionally

23. Any further suggestions: ……………………………………………..


…………………………………………………..

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