Route to Market and Selling Methodology of Maggi Sauces

Presented By Rohit Gupta MBA 2nd Year

Objectives of the Report

Primary Objectives
Study the availability of Maggi Sauces and Scope of Expansion Track performance Suggest road for the future

Overview of the Indian Sauce Industry

Industry Size: Rs. 204 Crores(approx) CAGR 2010: 10.9% CAGR 2014: 12.4% (E) Future very promising for the Indian Sauce industry.

Source: Data Monitor

Major Players in the Indian Sauce Industry

Competition: Its a Saucy Affair

Market Share 2005
Others 20%

Market Share2010

Others 25%

Tops G.D. Foods 7% Heinz 1%

Nestle Maggi 46% Tops G.D. Foods 7%

Nestle Maggi 40%

Heinz 2% Kissan 26% HUL Kissan 26%

Source: Data Monitor

Tracking Sales of Maggi Sauces

Sales of Maggi Sauces
600

500

400

300

Sales of Maggi Sauces

200

100

0 January Feburary March April May June

Sales YOY Basis

Sales of sauces YOY
2140 2120 2100 2080 2060 2040 2020 2000 Sales of sauces YOY

1980
1960 Jan-Jun 2010 Jan-Jun 2011

Penetration of Maggi Sauces

Visibility of Maggi Sauces

SWOT Analysis of Maggi Sauces

Strengths Market Leader Strong Distribution Network Being Nestle Products to suite the Indian Consumers. R&D Center in India Weaknesses Thickness of the sauce

SWOT Analysis of Maggi Sauces(contd.)

Opportunities Changing food habits Launch of Traditional Indian Taste Tie up with fast food joints Threats Tough competition Unorganized Sector Low Entry Barrierss

SWOT Analysis of Kissan Sauces

Strengths Strong Market Positions Brand Name Strong Distribution Position More Thicker Weaknesses Lack of Variety Lack of penetration in the rural markets Lack of Advertisements

SWOT Analysis of Kissan Sauces(contd)

Opportunities To became the market leader Changing Habits of the Indian Consumer Threats Same as for Maggi

Methodology

Findings
High Consumption of sauces among respondents Maggi and Kissan top on brand recall

Cut through competition for the most preferred brand.

Taste and Quality being the most influencing factors while buying sauces. TV the most effective means of awareness.

Findings(Contd.)
Majority of the respondents willing to switch brands.
Quality and Taste cited as reason. Tomato ketchup being most preferred variant Taste Major reason for consuming Maggi sauces followed by quality. 83% users of Maggi sauces have tried different brand.

Findings(contd.)
Advertisement and reference of retailers being the major reason for trying.
People would love to see new packaging Respondents satisfied with the availability. Reaction on Non- Availability of sauces surprising. Overall satisfaction good.

Findings from discussions with Retailers

Maggi ,Kissan go hand in hand in terms of Market Share. Easy to a Push a Particular brand of sauce

New packaging introduced by companies not successful.

Maggi offers the lowest margins.

A certain percentage of people a loyal towards the brand.

Findings from discussions with Retailers(contd.)

Availability of sauces not an issue in the markets. Tops dominant in rural and semi urban areas.

Recommendations

Recommendations(Contd.)

THANK YOU