Indian Food Industry With Special Refference of MAGGI

INDIAN FOOD INDUSTRY WITH SPECIAL REFFERENCE OF MAGGI
INDEX
Sr. no.
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2
content
INDUSTRY OVERVIEW
COMPANY PROFILE
2.1 Introduction
2.2 History Of The Company
2.3 Product Profile
2.4 Varied Uses
2.5 Swot Analysis
RESEARCH METHODOLOGY
3.1 Objective Of The Study
3.2 Managerial Usefulness Of The Study
3.3 Scope Of The Study
3.4 Types Of Data
3.5 Type Of Research Design
3.6 Data Collection
3.7 Significance & Limitations Of The Study
MARKETING STRATEGIES
4.1 Introduction
4.2 Marketing Mix
4.3 Marketing Strategies Of Maggi
4.4 Stp Analysis Of Maggi
ANALYSIS
findings And Analysis
6
7
CONCLUSION
BIBLIOGRAPHY & WEBLIOGRAPHY
Books:
News Papers:
Web Sites:
Pg. no.
CHAPTER 1
INDUSTRY OVERVIEW
INDIAN FOOD INDUSTRY

India is the world's second largest producer of food next to China, and
has the potential of being the biggest with the food and agricultural sector.
The total food production in India is likely to double in the next ten years
and there is an opportunity for large investments in food and food processing
technologies, skills and equipment, especially in areas of Canning, Dairy
and Food Processing, Specialty Processing, Packaging, Frozen
Food/Refrigeration and Thermo Processing. Fruits & Vegetables, Fisheries,
Milk & Milk Products, Meat & Poultry, Packaged/Convenience Foods,
Alcoholic Beverages & Soft Drinks and Grains are important sub-sectors of
the food processing industry. A health food and health food supplement is
another rapidly rising segment of this industry which is gaining vast
popularity amongst the health conscious.
India is one of the worlds major food producers but accounts for less
than 1.5 per cent of international food trade. This indicates vast scope for
both investors and exporters. Food exports in 1998 stood at US $5.8 billion
whereas the world total was US $438 billion. The Indian food industries
sales turnover is Rs 140,000 crore (1 crore = 10 million) annually as at the
start of year 2000. The industry has the highest number of plants approved
by the US Food and Drug Administration (FDA) outside the USA.
India's food processing sector covers fruit and vegetables; meat and
poultry; milk and milk products, alcoholic beverages, fisheries, plantation,
grain processing and other consumer product groups like confectionery,
chocolates and cocoa products, Soya-based products, mineral water, high
protein foods etc. We cover an exhaustive database of an array of suppliers,
manufacturers, exporters and importers widely dealing in sectors like the
-Food Industry, Dairy processing, Indian beverage industry etc. We also
cover sectors like dairy plants, canning, bottling plants, packaging
industries, process machinery etc.
The most promising sub-sectors includes -Soft-drink bottling,

Confectionery manufacture, Fishing, aquaculture, Grain-milling and grainbased products, Meat and poultry processing, Alcoholic beverages, Milk
processing, Tomato paste, Fast-food, Ready-to-eat breakfast cereals, Food
additives, flavors etc.
This project studies Maggie and how it leads the packaged foods
industry. Over the years Maggi has become a household name. It caters to all
ages, tastes and preferences alike.Maggi being an old company has survived
stiff competition year after year in India from companies like Hindustan
lever, which challenged Maggi soups with knorr and Maggi sauces with
kissan tomato ketchups. A lot of other Indian companies are struggling to
keep up with Maggis popularity amongst consumers. from time to time
companies work to introduce products that displace Maggie products from
the market for example tops came up with top ramen noodles which was
targeted to be more popular than Maggie but failed. Even with all the
challenges Maggie an international brand has become immensely popular. A
large percentage of Indian kids think of Maggie noodles when they feel
hungry and need something that is easy to prepare.Maggi introduces new
things, new products, and added benefits in food. They introduced healthy
substitutes to Maggi 2 minute noodles like Maggi atta noodles, Maggie dal
atta noodles etc with added nutrients. This industry producing packaged
foods focuses on consumer tastes and needs. Companies have to make there
brand a name that clicks with consumer all the time. Thus they always crave
to add more and more to their products. Likewise Maggi is amongst the very
first choices that most people chose to buy and consume. This project will
study how Maggi manages to be such a reputed and popular brand.
CHAPTER 2
COMPANY PROFILE
2.1 Introduction
Maggi is a Nestl brand of instant soups, stocks, ketchups and instant
noodles. It was founded by the Maggi family in Switzerland in the 19th
century, and merged with Nestl in 1947.
The alimentary company came into existence in 1872 in Switzerland,
when Julius Maggi took over his father's mill. It quickly became a pioneer of
industrial food production, aiming at the improvement of the nutrition of
worker families. It was the first to bring protein-rich legume meal to the
market, which was followed by ready-made soup based on legume meal in
1886.
In parts of Europe, including German-speaking countries as well as
the Netherlands, Czech Republic, Slovakia, Poland and France, "Maggi" is
still synonymous with the brand's "Maggi-Wrze" (Maggi spice), a dark
sauce which is very similar to Asian soy sauce without actually containing
soy. It was also introduced in 1886, as a cheap substitute for meat extract. It
has since become a well-known part of everyday culinary culture in
Switzerland and especially in Germany.
The bouillon cube or 'Maggi cube' was introduced in 1908, which was
another meat substitution product. In West Africa, Maggi cubes are used as
part of the local cuisine.
Today Maggi is particularly well known in New Zealand, Pakistan,
India, Sri Lanka, Jamaica, Australia, the Philippines, Malaysia and
Singapore for its instant noodles. "Maggi" has become a genericized
trademark for instant noodles in much of Malaysia.
In the German, Dutch and Danish languages lovage has come to be
known as "Maggi herb" (Ger. Maggikraut, Du. Maggikruid or Da. Maggiurt)
because of a supposed resemblance to the taste of Maggi sauce.
2.2 History of the Company

Nestls relationship with India dates back to 1912, when it began
trading as The Nestl Anglo-Swiss Condensed Milk Company (Export)
Limited, importing and selling finished products in the Indian market
After Indias independence in 1947, the economic policies of the
Indian Government emphasized the need for local production. Nestl
responded to Indias aspirations by forming a company in India and set up
its first factory in 1961 at Moga, Punjab, where the Government wanted
Nestl to develop the milk economy. Progress in Moga required the
introduction of Nestls Agricultural Services to educate advice and help the
farmer in a variety of aspects. From increasing the milk yield of their cows
through improved dairy farming methods, to irrigation, scientific crop
management practices and helping with the procurement of bank loans.
Nestl set up milk collection centres that would not only ensure prompt
collection and pay fair prices, but also instill amongst the community, a
confidence in the dairy business. Progress involved the creation of
prosperity on an on-going and sustainable basis that has resulted in not just
the transformation of Moga into a prosperous and vibrant milk district today,
but a thriving hub of industrial activity, as well.
Nestl has been a partner in India's growth for over nine decades now
and has built a very special relationship of trust and commitment with the
people of India. The Company's activities in India have facilitated direct and
indirect employment and provides livelihood to about one million people
including farmers, suppliers of packaging materials, services and other
goods.
The Company continuously focuses its efforts to better understand the
changing lifestyles of India and anticipate consumer needs in order to
provide Taste, Nutrition, Health and Wellness through its product offerings.
The culture of innovation and renovation within the Company and access to
the Nestl Group's proprietary technology/Brands expertise and the
extensive centralized Research and Development facilities gives it a distinct
advantage in these efforts. It helps the Company to create value that can be
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sustained over the long term by offering consumers a wide variety of high
quality, safe food products at affordable prices.
Nestl India manufactures products of truly international quality under
internationally famous brand names such as NESCAF, MAGGI,
MILKYBAR, MILO, KIT KAT, BAR-ONE, MILKMAID and NESTEA and
in recent years the Company has also introduced products of daily
consumption and use such as NESTL Milk, NESTL SLIM Milk,
NESTL Fresh 'n' Natural Dahi and NESTL Jeera Raita. Nestl India is a
responsible organization and facilitates initiatives that help to improve the
quality of life in the communities where it operates.
2.3 Product Profile

Maggi Products
Maggi Cubes MaggiSpaghetti
Maggi Magic Sarap
Maggi Pancit Canton
Maggi Rich Mami Noodles
Maggi Savor
Maggi Seasoning
Maggi Sinigang
Maggi Sopas
Product Profile
Maggi products available in the Indian market are as follows:
Maggi 2-minute noodles
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Maggi vegetable atta noodles

Maggi dal atta noodles
Maggi rice noodles mania
Maggi sauces
Maggi pizza mazza
Maggi healthy soups
Maggi healthy soup sanjeevni
Maggi magic cubes
Maggi 2-minute Noodles

MAGGI 2-MINUTE Noodles are one of the largest snack food
brands in the country and define the Instant Noodles category in the
country. MAGGI 2-MINUTE Noodles has been renovated to provide
20% of the RDA* of Calcium and Protein for the core target group. It is
available in 4 flavours: Masala, Chicken, Tomato and Curry.
Maggi Vegetable Atta Noodles

Maggi vegetable atta noodles are an innovative product and the first
of its kind in India. Nestl India used the Group's extensive Research and
Development expertise to develop MAGGI Vegetable Atta Noodles which
contain whole wheat and real vegetables. A 100 gm pack of MAGGI
Vegetable Atta Noodles provides the goodness of 3 rotis* (energy,
carbohydrates, dietary fibre, protein and calcium). Taste Bhi, Health Bhi!
Maggi Dal Atta Noodles
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To provide the family with more good food, Nestl India has now
launched yet another innovative product - MAGGI Dal Atta Noodles, further
building on the nutrition proposition of TASTE BHI HEALTH BHI. In
addition to the wholesome nutrition of Dietary Fibre contained in whole
wheat (Atta), the new product offers the goodness of protein coming from
the unique combination of 'Atta' and 'Dal'. Every serve of MAGGI Dal Atta
Noodles provides over 20% of a child's daily requirement of dietary fibre
and protein, therefore making it a healthy choice.
MAGGI Dal Atta Noodles is available with the delicious taste of
SAMBAR.
Maggi Rice Noodle Mania (Chaska Taste ka, Health Rice ka)
MAGGI RICE NOODLE MANIA comes as another unique TASTE BHI
HEALTH BHI offering from the house of MAGGI.
The all-new exciting flavour range viz. Lemon Masala, Chilly Chow and
Shahi Pulao to appeal to all members of the family across different regions
of the country. The sheer range of flavours will fulfill the craving /
MANIA for taste and the goodness of rice with balanced energy (i.e. at
least 60% Energy from carbohydrates, not more than 30% from fat and
10% from Protein)
Maggi Sauces
Nestl India has always focused its efforts to better understand the
changing lifestyles of consumers and their needs. Based on such insights, the
Company continuously innovates and renovates. Recent examples are that of
MAGGI Tomato Chatpat, a mix of Tomato, Ginger, Garlic & Coriander and
Maggi Tomato Pudina mix of Tomato, Mint & Coriander, and MAGGI
Teekha Masala mix of Tomato, Cumin, and Chillies & Coriander.
MAGGI Oriental Chilli Garlic Sauce The product, a renovation of
our existing Chilli Garlic Sauce draws inspiration from the most popular
foreign cuisine in our country Chinese. A delicious mix of tomato, Soya
sauce, spring onions & spices, it would evoke an instant reaction Its
Different
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Maggi Pizza Mazza

Now you do not need to order from outside and wait for 30 minutes.
With MAGGI Pizza Mazza one can prepare delicious pizzas within minutes.
You can also have the mazza of the pizza on other items like naans, foot
longs and of course the most easily available of them all bread slices.
Available in a 300 gm jar, each bottle is good for 5 pizza bases. So go ahead
and treat your family to the taste of authentic pizzas tonight!
Nestl pioneered the dehydrated soups market in India and was the
first to introduce tasty and convenient packaged soups.
MAGGI Healthy Soup- Sanjeevni (The art of healthy living.

Instantly)
The new MAGGI Healthy Soups have been carefully prepared
through the Research and Development efforts of Nestl Group and are even
more delicious, quick to prepare, convenient and healthy. Taste Bhi, Health
Bhi!
MAGGI Healthy Soups contain real vegetables, are low fat, low
cholesterol and free from synthetic colours and added MSG.
These superior healthy soups are now available in an enhanced range
of 10 delicious variants:
Cream of Mushroom
Tangy Tomato Vegetable
Creamy Chicken
Rich Tomato
Hot & Sour Chicken
Sweet Corn Chicken
Hot & Sour Vegetable
Sweet Corn Vegetable
Mix Vegetable
Sweet n Sour Tomato Noodles
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Traditional recipes for good health, made with ingredients time-tested

for their goodness. like Amla, Badam, Spinach, Dal & Tomato. And whats
more- they are available in convenient single serve packs and are instant!
Just add hot water and treat yourself to a cupful of life. Anytime, Anywhere
Maggi Magic Cubes

MAGGI MAGIC Cubes are taste enhancers - "Chutki bhar Jadoo!"
MAGGI MAGIC Cubes are available in two flavours - Vegetarian Masala
and Chicken.
2.4 Varied Uses

The MAGGI range as we currently have can be used by consumers
depending on the type of meal being prepared and the desired taste. The
quantity to be used is also very dependent on the consumer. There is
however some suggested uses as well as a detailed description of the
components of each special varian
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2.5 SWOT ANALYSIS

Nestle - A SWOT analysis
Nestle India Limited is the Indian arm of Nestle SA, which holds a
51% stake in the company. It is one of the leading branded processed food
companies in the country with a large market share in products like instant
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coffee, weaning foods, instant foods, milk products, etc. It also has a
significant share in the chocolates and other semi-processed foods market.
Nestl's leading brands include Cerelac, Nestum, Nescafe, Maggie, Kitkat,
Munch and Milkmaid. To strengthen its presence, it has been the company's
endeavor to launch new products at a brisk pace and has been quite
successful in its launches.
Nestle business break-up
Segments
Brands
CY01 sales CY02 sales CY03 sales
Milk Products &

nutrition
Everyday Dairy Whitener,

milk powder, Milkmaid, Milk,
Dahi, Butter, Cerelac, Nestogen
8,159
8,847
9,880
% of sales
42.5%
43.2%
43.4%
% growth
10.6%
8.4%
11.7%
5,627
4,894
5,449
% of sales
29.3%
23.9%
23.9%
% growth
14.7%
-13.0%
11.3%
2,765
3,503
4,094
% of sales
14.4%
17.1%
18.0%
% growth
19.6%
26.7%
16.9%
2,646
3,227
3,366
% of sales
13.8%
15.8%
14.8%
% growth
21.4%
21.9%
4.3%
Total Sales
19,197
20,470
22,790
14.4%
6.6%
Beverages
Prepared dishes/
cooking aids (Culinary)
Chocolates &
confectionery
Nescafe, Milo, Nestea
Maggi (noodles, pickles,

soups, sauces)
Munch, KitKat, Bar One,

Classic,Choco Stick, MilkyBar
Choo,Nestle Fruit & Nut
% growth
*(figures in Rs m)
Strengths:
* Access to the Nestle Groups proprietary technology/brands, expertise and
the extensive centralized Research and Development facilities, under the
General License Agreement.
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* High quality and safe products, endorsed by the Nestle Seal of Guarantee
at affordable prices.
* Well distributed product portfolio.
* Integrated and efficient supply chain.
* Distribution structure that allows wide reach and coverage in the target
markets.
* Capable and committed manpower resources.
Parent support:
Nestle India has a strong support from its parent company, which is the
worlds largest processed food and beverage company, with a presence in
almost every country. The company has access to the parents hugely
successful global folio of products and brands.
Brand strength:
In India, Nestle has some very strong brands like Nescafe, Maggi and
Cerelac. These brands are almost generic to their product categories: Strong
and well differentiated brands with leading market shares.
Product innovation:
The Company has been continuously introducing new products for its Indian
patrons on a frequent basis, thus expanding its product offerings.
Weakness:
Exports The companys exports stood at Rs 2,571 m at the end of 2005
(11% of revenues) and continue to grow at a decent pace. But a major
portion of this comprises of Coffee (around 67% of the exports were that of
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Nescafe instant to Russia). This constitutes a big chunk of the total exports
to a single location. Historically, Russia has been a very volatile market for
Nestle, and its overall performance takes a hit often due to this factor.
Supply chain - The Company has a complex supply chain management

and the main issue for Nestle India is traceability. The food industry requires
high standards of hygiene, quality of edible inputs and personnel. The
fragmented nature of the Indian market place complicates things more.
Opportunities:
Expansion - The Company has the potential to expand to smaller towns
and other geographies. Existing markets are not fully tapped and the
company can increase presence by penetrating further. With India's
demographic profile changing in favour of the consuming class, the per
capita consumption of most FMCG products is likely to grow. Nestle will
have the inherent advantage of this trend.
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* Growing trend for òut-of-home` consumption.

* Leverage Nestle Technology to develop more products that provide
Nutrition, Health and Wellness.
Product offerings - The Company has the option to expand its product folio
by introducing more brands which its parents are famed for like breakfast
cereals, Smarties Chocolates, Carnation, etc.
Global hub - Since manufacturing of some products is cheaper in India

than in other South East Asian countries, Nestle India could become an
export hub for the parent in certain product categories.
Threats:
Competition - The Company faces immense competition from the
organized as well as the unorganized sectors. Off late, to liberalize its trade
and investment policies to enable the country to better function in the
globalize economy; the Indian Government has reduced the import duty of
food segments thus intensifying the battle.
Changing consumer trends - Trend of increased consumer spends on
consumer durables resulting in lower spending on FMCG products. In the
past 2-3 years, the performance of the FMCG sector has been lackluster,
despite the economy growing at a decent pace. Although, off late the
situation has been improving, the dependence on monsoon is very high.
Sectoral woes - Rising prices of raw materials and fuels, and in turn,
increasing packaging and manufacturing costs. But the companies may not
be able to pass on the full burden of these onto the customers.
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CHAPTER 3
RESEARCH METHODOLOGY
3.1 Objective of the Study

The main objective of the project is to study the marketing strategies of
Maggis. In order to have a proper study of the strategies we need to know
fully about Maggis competitors. The main competitors of Maggi in India
are HLL, Britannia, Nissan and tops. All of them would have intentions of
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acquiring the highest market share in the packaged foods industry of the
country, in the long run.
Another main objective is to know the customers.

Are the customers satisfied with the product or not?
Marketing research is the process collecting and analyzing marketing
information and ultimately arrived at certain conclusion Management in any
organization need information about potential marketing plans and to change
in the market place. Marketing research includes all the activities that enable
an organization to obtain the information. This research is very important in
strategy formation and feed back of any organizational plan.
There are many type of research some are conceptual, empirical,
descriptive, explorative etc. each research type is being used for various
purposes.
Research design is the plan, structure and strategy of investigation
conceived so as to obtain to research problem and control variances. It is the
specification of methods and procedures for acquiring the information
needed. It is overall operational pattern or framework of the project that
stipulated what information is to be collected and from which source and by
what procedure.
3.2 Managerial Usefulness of the Study

The research is a systematic investigation of any idea. The research is
widely used in the business world for analyzing & evaluation business
policy as well as the analyzing & evaluates competitors activity and policy.
The research is itself valuable. The research gives fact and figure, which is
useful in planning.
As it is obvious any business activity is based on to the 4 Ps of
marketing viz. price, product, promotion, place all these Ps have its own
importance and all are inter-related with each other but most importantly all
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the factor are independent in the nature. In any organization all factors are
carefully formulated to gain a success in the market. It is very important for
business analyst to evaluate the modern trend and market position. In the
other hand it is vital for business operation to know the need and desire of
customer. All the necessary information is received from market by research
work.
The study reveals many facts that have come up during my project
and these facts can either be used as opportunities in exploring and
expanding the business as well as can be used as safeguards against threats
by the competitions. To prepare an effective marketing strategy a company
must study it s competitors as well as its actual and potential retailer. A
company should maintain good relation with their distributors and retailers
keeping in view competitive orientation in todays global market. Company
should neither put much emphasis on competitors positioning nor should it
solely concentrate on its own products and policy. Rather it should find
midway between these two extremes and adopt flexible policy. Companies
should manage a good balance of declares retailer, consumer & competitors
monitoring.
The information will prove beneficial in taking proactive action for
combating competition the standing of the company and its competitors in
the mind off the retailer in a vital factor in deciding the success of business
the study also aims at finding out the market share in term of their sale,
product penetration demand etc which is adjusted by retailer. This
information is good guide to management as it brings out the strength of the
competition their product penetration, product demand their promotion
policy, which gives an overview where the company needs to improve. This
study basically aimed at providing the management desired vital information
about the market situation.
Consumer behavior can be useful in following ways: It can be useful for adopting the proper marketing mix in respect of type
of product, distribution pattern, and market share.
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It can be useful to understand the consumer perception which is very vital

for product mix as well as promotion mix.
3.3 Scope of the Study

1. The present study is the study on Maggi, one of Indias and Worlds
largest packaged foods production organization. From the study one
can easily infer the present market position of Maggi with its leading
competitors.
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2. The study is designed and focused primarily on identifying the present

market position of the Maggi. It also includes identification of its core
competitors and enhancing efforts towards brand repositioning in
present and in future.
3.4 Types of Data

SAMPLE DESIGN: - The sampling designs are mainly of two types nonprobability sample designs and probability sample design.
RANDOM SAMPLING: - a random sample gives every unit of population a
known and non probability of being selected. Since random sampling implies
equal probability to every unit in the population; it is necessary that the
selection of the sample must be free from human judgment.
SYSTEMATIC SAMPLING: - In this method first a sampling fraction is
calculated as N/n where N is total no. of units in the population and n is the
size of sample.
STRATIFIED RANDOM SAMPLING: - A stratified random sampling is
divided into mutually exclusive and mutually exhaustive strata or sub group and
then a simple random sample is selected with in each of the strata or sub group.
CLUSTER SAMPLING: - cluster sampling implies that instead of selecting
individual units from the population entire groups or clusters are selected
random.
QUOTA SAMPLING: - quota sampling involves the fixation of certain quotas,
which are to be fulfilled by the interviewers, since quota sampling is not based
on random selection it is not possible to calculate estimates of standard errors
for the sample result.
JUDGEMENTAL SAMPLING: - the main characteristic of judgemental
sampling is that units or elements of the population are purposely selected it is
because of this that judgement samples are also called purposive samples. Since
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the process of judgmental sampling is not based on random sampling it is also

called non-probability sampling.
Two types of data:1. PRIMARY DATA

2. SECONDARY DATA
PRIMARY DATA: Primary data is that kind of data which is collected by the investigator
himself for the purpose of the specific study. The data such collected is
original in character. The advantage of third method of collection is the
authenticity. A Set of questions was put together in the form of
questionnaire. The method of sampling was the random method as it is
unbiased.
SECONDARY DATA: When an investigator uses the data that has been already collected by others
is called secondary data. The secondary data could be collected from
Journals, Reports and Various Publications. The advantages of secondary
data can be economical, both in the term of money and time spent. The
researcher of the reporter also did the same and collected secondary from
various internet sites like Google.com.altavista.com and many more. The
researchers of the reporter also visited various libraries for collection of the
introduction part.
3.5 Type Of Research Design

Different types of research design have emerged on account of the different
perspectives from which a research study can be viewed. There are three
fundamental categories that we used frequently are given below.
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EXPLORATORY RESEARCH: - In the case of exploratory research,

the focus is on the discovery of ideas. An exploratory study is generally
based on the secondary data that are readily available. It does not have
formal and rigid as the researcher may have to change his focus or direction,
depending on new idea and relationships among variables. An exploratory
research is in nature of a preliminary investigation.
DESCRIPTIVE RESEARCH: - The objective of such a study is to

answer the who, what, when, where and how. Of the subject under
investigation, descriptive studies are well structured and tend to be rigid and
its approach can not be changed every now and then. It is therefore,
necessary that the researcher give sufficient thought to farming research
question and deciding the types of data to be collected and procedure to be
used for this purpose.
CASUAL RESEARCH: - A causal research investigates is cause and

effect relationship between two or more variables. The causal research
design is based on reason along well-tested line. We use inductive logic for
confirming hypothesis with the help of future evidence.
TYPE OF RESEARCH CARRIED OUT: In my project work I used exploratory research, as it aim to answering
question about sale, brand availability, service quality, distribution pattern
etc.
3.6 Data Collection

To achieve the objectives, the primary as well as secondary source of
data is used. Primary source includes the retailers and companys officials
through questionnaires.
Secondary source of data includes the past records of company.
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The data were collected through the following methodical techniques

in the present project work.
1.
2.
3.
Through questionnaires
Through interview
Through observation
QUESTIONNAIRES:Questionnaires consist of question printed or type in definite order on

a form or set of form. It was questionnaire format firms tested on small
sample then was modified and developed according to the environmental
situation and other affecting factors. Each questionnaire is framed with
systematic and modern technique to make useful in achieving the objectives
up to a maximum possible limit.
There are two types of questionnaires, the first one is standard
questionnaire and the second is un-standard questionnaire. The authority or
expert sets the standard questionnaire. In the other hand un-structured
questionnaire is set according to objective of the study by researcher.
In this research work I used un-structured questionnaire with my best
ability and under the guidance of my institutes faculties and the project
guide of the organization.
After floor acing the questionnaire, the respondents (retailers and
customers) were personally contacted. Each respondent was requested to
answers the question with appropriate answer genuinely. All the questions
were made very clear to them. The questionnaires were duly filled with the
responses of all the respondents in the current project work.
INTERVIEW METHOD: There is a fact to face interaction with most of the samples they were
directly questioned and according personal and professional problem were
collected from them for question are asked to the responded to flourish the
questionnaire effectively and efficiently. In this project work I have made
interview with almost respondent to know some extra data or fact, which
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was used in this project work. After using this method I tried to find the
competitors policy and there strength after this method I was able to
conclude all facts with competitors point of view.
OBSERVATION METHOD:During the project work, I contact the retailers and consumers
particularly and find their opinion about the Maggi.
In the observation method the research himself collects necessary
information by observing the phenomena under this method. Observation
may be conducted on in the natural field or in the form of experiment.
After observation the data carefully noted in the questionnaire format.
I used uncontrolled observation in this observation takes place in the natural
setting. Retailer and customer are free to express their felling about the
product and the company. The observation method give me an idea about the
satisfaction level of customer and retailer in the other hand there precious
knowledge about the market situation make me understand the business
difficulties which help me a lot to carry out my project in a significant and
effective manner.
3.7 Significance & Limitations of the Study

SIGNIFICANCES: Any Research has its own importance in any business organization.
The research shows the real fact about product as well as organization.
Research is a systematic and scientific investigation of any idea either
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precise or abstract from a continuous basis for learning , it could be

either exploratory or descriptive.
According to above definition research is a systematic and
scientific investigation through which any organization try to find out
its strength and weakness as well as opportunity and threat. As we
know in the present era the business activities have become more
complex and complicated due to modern technology , globalization and
liberalization and on the other hand today customer are highly conscious
about products and brand .
In the current situation customers are not blind followers of a product.
They are giving high priority to all feature like price, quality,
innovative features etc. But after all this features brand becomes the
inevitable parts of any product because it gives the complete identification
of product so it is also the one most important part.
My research work is highly focused on this issue, which is important
for me as well as the organization. During research work I learnt consumers
have different opinion about product and services.
Due to hurdles I dont claim my research work is 100% accurate
because so many factors was uncontrolled during the project .I tried to
finish my research with 100% accuracy which is best available in
market .
So it is my strong belief that my research work is significant in all
manners. This research is helpful for organization, retailers as well as
consumer.
LIMITATIONS
Company officials hesitate to give information on companys
strategies like pricing which could be helpful to their competitors.
No company agrees to show the record of performance of any of their
specific product. Even they do not will to give a brief synopsis of the record.
Hence, the performance report could not be produced in the thesis under
study.
28
29
CHAPTER 4
MARKETING STRATEGIES
4.1 Introduction
A market-focused, or customer-focused, organization first determines
what its potential customers desire, and then builds the product or service.
Marketing theory and practice is justified in the belief that customers use a
30
product or service because they have a need, or because it provides a

perceived benefit.
Two major factors of marketing are the recruitment of new customers
(acquisition) and the retention and expansion of relationships with existing
customers (base management). Once a marketer has converted the
prospective buyer, base management marketing takes over. The process for
base management shifts the marketer to building a relationship, nurturing the
links, enhancing the benefits that sold the buyer in the first place, and
improving the product/service continuously to protect the business from
competitive encroachments.
For a marketing plan to be successful, the mix of the four Ps must
reflect the wants and desires of the consumers in the target market. Trying to
convince a market segment to buy something they dont want is extremely
expensive and seldom successful. Marketers depend on marketing research,
both formal and informal, to determine what consumers want and what they
are willing to pay for it. Marketers hope that this process will give them a
sustainable competitive advantage. Marketing management is the practical
application of this process. The offer is also an important addition to the 4Ps
theory.
Within most organizations, the activities encompassed by the
marketing function are led by a Vice President or Director of Marketing. A
growing number of organizations, especially large US companies, have a
Chief Marketing Officer position, reporting to the Chief Executive Officer.
The American Marketing Association (AMA) states, Marketing is the
process of planning and executing the conception, pricing, promotion, and
distribution of ideas, goods, and services to create exchanges that satisfy
individual and organizational objectives.
Marketing methods are informed by many of the social sciences,
particularly psychology, sociology, and economics. Anthropology is also a
small, but growing, influence. Market research underpins these activities.
Through advertising, it is also related to many of the creative arts. Marketing
is a wide and heavily interconnected subject with extensive publications. It
is also an area of activity infamous for re-inventing itself and its vocabulary
according to the times and the culture.
31
Two levels of marketing:

Strategic Marketing attempts to determine how an organization competes
against its competitors in a market place. In particular, it aims at generating a
competitive advantage relative to its competitors.
Operational Marketing executes marketing functions to attract and keep
customers and to maximize the value derived for them, as well as to satisfy
the customer with prompt services and meeting the customer expectations.
Operational Marketing includes the determination of the marketing mix.
4.2 Marketing Mix

Four Ps
In popular usage, marketing is the promotion of products, especially
advertising and branding. However, in professional usage the term has a
wider meaning which recognizes that marketing is customer centered.
Products are often developed to meet the desires of groups of customers or
even, in some cases, for specific customers. E. Jerome McCarthy divided
marketing into four general sets of activities. His typology has become so
32
universally recognized that his four activity sets, the Four Ps, have passed
into the language.
The four Ps are:
Product: The product aspects of marketing deal with the specifications of
the actual goods or services, and how it relates to the end-users needs and
wants. The scope of a product generally includes supporting elements such
as warranties, guarantees, and support.
Pricing: This refers to the process of setting a price for a product, including
discounts. The price need not be monetary - it can simply be what is
exchanged for the product or services, e.g. time, energy, psychology or
attention.
Promotion: This includes advertising, sales promotion, publicity, and
personal selling, and refers to the various methods of
promoting the product, brand, or company.
Placement or Distribution refers to how the product gets to the
customer; for example, point of sale placement or retailing. This fourth
P has also sometimes been called Place, referring to the channel by
which a product or services is sold (e.g. online vs. retail), which
geographic region or industry, to which segment (young adults, families,
business people), etc.
These four elements are often referred to as the marketing mix,[1] which a
marketer can use to craft a marketing plan. The four Ps model is most useful
when marketing low value consumer products. Industrial products, services,
high value consumer products require adjustments to this model. Services
marketing must account for the unique nature of services. Industrial or B2B
marketing must account for the long term contractual agreements that are
typical in supply chain transactions. Relationship marketing attempts to do
this by looking at marketing from a long term relationship perspective rather
than individual transactions.
33
As a counter to this, Morgan, in Riding the Waves of Change (JosseyBass, 1988), suggests that one of the greatest limitations of the 4 Ps
approach is that it unconsciously emphasizes the insideout view (looking
from the company outwards), whereas the essence of marketing should be
the outsidein approach. Nevertheless, the 4 Ps offer a memorable and
workable guide to the major categories of marketing activity, as well as a
framework within which these can be used.
Seven Ps
As well as the standard four Ps (Product, Pricing, Promotion and
Place), services marketing calls upon an extra three, totaling seven and
known together as the extended marketing mix. These are:
People: Any person coming into contact with customers can have an impact
on overall satisfaction. Whether as part of a supporting service to a product
or involved in a total service, people are particularly important because, in
the customers eyes, they are generally inseparable from the total service .
As a result of this, they must be appropriately trained, well motivated and
the right type of person. Fellow customers are also sometimes referred to
under people, as they too can affect the customers service experience,
(e.g., at a sporting event).
Process: This is the process (es) involved in providing a service and the
behaviour of people, which can be crucial to customer satisfaction.
Physical evidence: Unlike a product, a service cannot be experienced before
it is delivered, which makes it intangible. This, therefore, means that
potential customers could perceive greater risk when deciding whether to
use a service. To reduce the feeling of risk, thus improving the chance for
success, it is often vital to offer potential customers the chance to see what a
service would be like. This is done by providing physical evidence, such as
case studies, testimonials or demonstrations.
Marketing New 4Ps

34
The original 4Ps concept idea was developed to help marketers

manage the four most important aspect of marketing. With the Internet and
the Web 2.0, marketers have needed to adapt a broader perspective on these
elements. Idris Mootee devised a New 4Ps model in 2001 to supplement
the traditional marketing 4Ps.[2] They are Personalization, Participation,
Peer-to-Peer and Predictive Modeling.
Personalization: The author here refers to customization of products
and services through the use of the Internet. Early examples
include Dell on-line and Amazon.com, but this concept is
further extended with emerging social media and advanced
algorithms. Emerging technologies will continue to push this
idea forward.
Participation: This is to allow customer to participate in what the brand
should stand for; what should be the product directions and
even which ads to run. This concept is laying the foundation
for disruptive change through democratization of information.
Peer-to-Peer: This refers to customer networks and communities where
advocacy happens. The historical problem with marketing is that it is
interruptive in nature, trying to impose a brand on the customer. This is
most apparent in TV advertising. These passive customer bases will
ultimately be replaced by the active customer communities. Brand
engagement happens within those conversations. P2P is now being referred
as Social Computing and will likely to be the most disruptive force in the
future of marketing.
Predictive modeling: This refers to predictive algorithms, such as neural
network, that are being successfully applied in marketing problems (both a
regression as well as a classification problem).
Steps in product design

Design and development of product ideas
Selection of and sifting through product ideas
35
Design and testing of product concept

Analysis of profitability of product concept
Design and testing of physical product
1. Packaging and trademarks

Requirements of good packaging
Appropriately designed for target market
Eye-catching
Suitable to product
Compliant with retailers requirements
Promotes image of enterprise
Distinguishable from competitors products
Strong, convenient, well-designed
Point of difference in service and supply of product
2. Forms of packaging
Specialty packaging emphasizes the elegant character of the product
Packaging for double-use
Combination packaging two or more products packaged in the same
container
Kaleidoscopic packaging packaging changes continually to reflect a
series or particular theme
Packaging for immediate consumption to be thrown away after use
Packaging for resale packed, into appropriate quantities, for the retailer
or wholesaler
3. Significance of a trademark
Distinguishes one companys goods from those of another
Serves as advertisement for quality
36
Protects both consumers and manufacturers

Used in displays and advertising campaigns
Used to market new products
4. Requirements of a good trademark

Reflects products advantages
Good, simple language
Easily pronounced and remembered
Distinct from names of other products
Easily added to an existing range
Easily registered for legal protection
Pricing
Pricing refers to the amount of money exchanged for a product. This value is
determined by utility to the consumer in terms of money and/or sacrifice that
he is prepared to give for it.
Objectives
1.
2.
3.
4.
5.
6.
7.
Definite sales volume

Achieve profit
Larger market share
Maintain market share
Eliminate competition
Advantages of mass production
Satisfactory return on capital
Factors influencing price-determination

1.
2.
3.
4.
Production and distribution costs

Substitute goods available
Normal trade practices
Fixed prices
37
5. Reaction of distributors
6. Reaction of consumers
7. Nature of demand:
8. Elastic
9. Inelastic
10.Form of market:
11.Perfect competition
12.Monopolistic competition
13.Monopoly
14.Oligopoly
Steps to determine price

1.
2.
3.
4.
Determine market share to be captured

Set up price strategy
Estimate demand
Evaluate competitors reactions
Distribution Channels
1.
2.
3.
4.
5.
Manufacturer to consumer (most direct)

Manufacturer to wholesaler to retailer to consumer (traditional)
Manufacturer to agent to retailer to consumer (current)
Manufacturer to agent to wholesaler to retailer to consumer
Manufacturer to agent to customer ( ex : AMWAY )
Manufacturers
Reasons for direct selling methods
1. Manufacturer wants to demonstrate goods.
2. Wholesalers, retailers and agents not actively selling.
38
3. Manufacturer unable to convince wholesalers or retailers to stock

product.
4. High profit margin added to goods by wholesalers and retailers.
5. Middlemen unable to transport.
Reasons for indirect selling methods
1. Manufacturer does not have the financial resources to distribute
goods.
2. Distribution channels already established.
3. Manufacturer has no knowledge of efficient distribution.
4. Manufacturer wishes to use capital for further production.
5. Too many consumers in a large area; difficult to reach.
6. Manufacturer does not have a wide assortment of goods to enable
efficient marketing.
Wholesalers
Reasons for using wholesalers
1.
2.
3.
4.
5.
6.
7.
Bear risk of selling goods to retailer or consumer

Storage space
Decrease transport costs
Grant credit to retailers
Able to sell for the manufacturers
Give advice to manufacturers
Break down products into smaller quantities
Reasons for bypassing wholesalers

1.
2.
3.
4.
5.
Limited storage facilities

Retailers preferences
Wholesaler cannot promote products successfully
Development of wholesalers own brands
Desire for closer market contact
39
6.
7.
8.
9.
Position of power
Cost of wholesalers services
Price stabilisation
Need for rapid distribution
Ways of bypassing wholesalers

1.
2.
3.
4.
5.
Sales offices or branches

Mail orders
Direct sales to retailers
Travelling agents
Direct Orders
Agents
Commission agents work for anyone who needs their services. They do not
acquire ownership of goods but receive del credere commission.
Selling agents act on an extended contractual basis, selling all of the
products of the manufacturer. They have full authority regarding price and
terms of sale.
Buying agents buy goods on behalf of producers and retailers. They have an
expert knowledge of the purchasing function.
Brokers specialize in the sale of one specific product. They receive a
brokerage.
Factory representatives represent more than one manufacturer. They
operate within a specific area and sell related lines of goods but have limited
authority regarding price and sales terms.
Marketing communications
40
Marketing communications breaks down the strategies involved with

marketing messages into categories based on the goals of each message.
There are distinct stages in converting strangers to customers that govern the
communication medium that should be used.
Advertising
1.
2.
3.
4.
Paid form of public presentation and expressive promotion of ideas

Aimed at masses
Manufacturer may determine what goes into advertisement
Pervasive and impersonal medium
Functions and advantages of successful advertising

1. Task of the salesman made easier
2. Forces manufacturer to live up to conveyed image
3. Protects and warns customers against false claims and inferior
products
4. Enables manufacturer to mass-produce product
5. Continuous reminder
6. Uninterrupted production a possibility
7. Increases goodwill
8. Raises standards of living (or perceptions thereof)
9. Prices decrease with increased popularity
10.Educates manufacturer and wholesaler about competitors offerings as
well as shortcomings in their own.
11.
Objectives
1. Maintain demand for well-known goods
2. Introduce new and unknown goods
3. Increase demand for well-known goods
Requirements of a good advertisement

41
1.
2.
3.
4.
5.
Attract attention
Stimulate interest
Create a desire
Bring about action
Create Awareness
Eight steps in an advertising campaign

1.
2.
3.
4.
5.
6.
7.
8.
Market research
Setting out aims
Budgeting
Choice of media
Choice of actors (New Trend)
Design and wording
Coordination
Test results
Personal sales
1. Oral presentation given by a salesman who approaches individuals or
a group of potential customers:
2. Live, interactive relationship
3. Personal interest
4. Attention and response
Sales promotion
1. Short-term incentives to encourage buying of products:
2. Instant appeal
3. Anxiety to sell
Publicity
42
1. Stimulation of demand through press release giving a favourable

report to a product
2. Higher degree of credibility
3. Effectively news
4. Boosts enterprises image
4.3 MARKETING STRATEGIES OF MAGGI

Businesses operate in markets that are constantly changing. Consumer
tastes and expectations are always on the move. This case study examines a
market-focused brand by Nestl. Also explores the development of Maggi 'A
Natural Choice': a range of culinary (cooking) products that is primarily
targeted at chefs.
Nestl is the world's leading food company. Since it was set up by
Henri Nestl to provide an infant food product, it has been associated with
providing high quality, customer and consumer focused products. In recent
years it has focused on becoming a nutrition, health and wellness company.
Wellness is about supporting people to live more healthy lives e.g. through
the development of probiotic yoghurts that help maintain the balance of the
digestive system.
The company is a world leader in research and development, and
Nestl's scientists work in all areas to create healthier and more nutritious
foods. Maggi is an important brand for Nestl. It is a global brand - widely
recognized as a consumer and foodservices brand in continental Europe.
Also, Maggi consists of a range of culinary aid products that are exclusively
available to the catering trade (known as 'foodservice') - primarily to chefs.
Maggi 'A Natural Choice' is a new development.
Nestl Foodservices sells Maggi 'A Natural Choice' to wholesale
distribution companies, such as 3663 and Brakes, and Cash and Carry
operators such as Booker, who in turn supply chefs and the catering trade.
The foodservice market is very competitive. Companies must apply
high standards to products and their nutritional content to meet stringent
43
food safety and labeling laws. In addition, members of the public are
becoming increasing knowledgeable and choosy about what they eat, as a
result of food scares and an increase in food allergies, leading to even higher
specifications.
The Maggi brand experienced a decline in sales leading up to 2004.
This was because the product had come to be seen as uninteresting and old
fashioned due to its dehydrated format and flavor. The product failed to meet
users' increasing requirements for fresh tasting culinary aids.
Maggi commissioned face-to-face qualitative research to get a deeper
insight into chef and consumer views. Chefs were asked to discuss their
requirements. The results showed that consumers were saying 'fresh is best'.
However, the chefs' view was slightly different in terms of: 'my customers
would like everything to be made from scratch (i.e. made from basic raw
ingredients),
4.4 STP ANALYSIS OF MAGGI

MARKET SEGMENTATION:
44
The research revealed that the market was divided into a number of
segments. A segment is a part of an overall market made up of customers
with similar characteristics. Chefs fitted into four main segments:
The research showed a sizeable demand for Segment 3 - a target for

Maggi 'A Natural Choice' products.
45
Brand proposition - the research defined a proposition for developing

the new brand. This new proposition was to create a product
with more natural qualities for 'chefs who aim to please' who
want their cooking to be as fresh tasting as possible. Natural
qualities would be defined in terms of taste, smell, look and
texture.
Target market-- Maggi 'A Natural Choice' target was to be
'chefs who aim to please'. Their prime aim is to provide
delicious, wholesome foods that customers enjoy. These chefs
enjoy their work and have a pride in the satisfaction they give
customers. They are not in business just to make money.
Brand ambition - Maggi 'A Natural Choice' combines the goodness and taste of real
ingredients with time and cost saving.
46
Two main strategies to deliver this ambition were implemented

in 2005:
Research and development

47
Nestl's strength in product research and development makes it

possible to develop products to fit market requirements. Maggi is committed
to providing cutting edge products that chefs want, e.g. products with a
lower salt content. These products are high quality and easy to use. The new
products need a more natural taste while at the same time offering value for
money.The Maggi 'A Natural Choice' range is now lower in salt and made
using sunflower oil. In addition, where possible the range benefits from
having no added MSG, is gluten free and contains no artificial colours or
flavours.The Maggi 'A Natural Choice' range has clear and easy to
understand nutrition and allergy information on all packaging to help chefs
understand what is in the products so they in turn can inform their
customers.The range is aimed at a variety of chefs. For example, two Maggi
'A Natural Choice' products widely used in school kitchens are:
multi-use tomato sauces
Bouillons (i.e. stock or broth for soup and sauces produced by
cooking vegetables, poultry, meat or fish in water, which is then
strained).
1. Multi-use tomato sauce - this saves time vs using chopped tomatoes. The
product is pre-reduced which means less wastage (the juice from chopped
tomatoes makes up one third of a tin and is usually poured away) and also
less cooking time as the product can be used straight from the tin. It contains
sunflower and olive oil and is pre-seasoned with basil and oregano so it can
be used straight from the tin. The sauce is mainly used as a pizza topping or
a pasta sauce as well as in soup and casseroles, and one serving can
contribute to one of the suggested five portions of fruit and vegetables per
day.Maggi also uses easy to understand labels showing nutritional and other
information. For example, the multi-use tomato sauce labels states
48
there are no added colours or artificial flavours

there is a low fat content
the salt and sugar content has been reduced by 25%
the key nutrients contained e.g. energy, protein, carbohydrates, sugars,
fat, saturated fats, fibre and sodium, salt equivalent labeling (if used
on brand)
Details of allergenic ingredients used.
2. Paste bouillons - Using a paste or powder bouillon is quicker than

preparing stock from scratch and helps to provide a consistent, authentic
flavour. They are easy to use, cost effective and there is no waste. Chefs
prefer paste bouillon because they believe it dissolves better when added
to water. Maggi paste bouillons are ideal for school catering because they
are gluten free, contain no added MSG, artificial colours or flavours, and
are made with sunflower oil and have less than 0.7g salt per 100ml when
made up. Bouillons are mainly used as a base to soups and sauces, as
well as adding flavour to casseroles.
New product development (innovation and renovation):

Each of Nestl's European factories is a centre of excellence that
specializes in developing new areas of food technology. New paste bouillon
research and development is carried out at an Austrian factory. The new
Maggi 'A Natural Choice' paste bouillons are created and developed there.
New product development involves a number of important stages. To give an
idea of timescale, the development process for paste bouillons: took 6
months
49
Product launch
Launching to chefs is very different from the launch of a product for
the retail environment. This is because it is not easy to communicate directly
with chefs, as this target market is made up of busy people who work
unsociable hours.
Publicity in the press started 6-8 weeks before the launch. Selected
trade media such as Catering Update and Caterer and Hotelkeeper carried
advertising and promotional material. Eight page supplements were
50
produced to get the message across. These appeared in the April and May
editions of the magazines, along with ongoing features in the wider press.
Direct mailing of informative literature to chefs and other users supported
this. Promotions including providing opportunities at special events for chefs
to sample new products were set up.Maggi works closely with the main
Foodservices wholesalers (3663 and Brakes) and Cash and Carry operators
(e.g. Booker). This ensures that distribution of Maggi 'A Natural Choice' to
caterers and chefs is effective.
These companies use a Product Listing Order Form (PLOF), which is
updated by negotiation in April and September only. It is imperative to
ensure distribution takes place to meet these critical timelines. Wholesalers,
together with cash and carry operators, were therefore given supporting
promotional material about the new products to coincide with the launch.
Other activities to develop young chefs run alongside Maggi 'A Natural
Choice' advertising and promotional activity. Nestl Foodservices
sponsors two major prestigious events for chefs which involve using
Maggi 'A Natural Choice' products. The Nestl Toque d'Or competition is
in its 18th year. Nearly every young chef dreams of running their own
restaurant. The challenge set is the task of designing a restaurant concept
and theme. This includes putting together an exciting menu. Teams of six
students work on this challenge
The other event is the Local Authority Caterers Association (LACA)
School Chef of the Year award sponsored by Nestl Foodservices. This was
launched to applaud the skills of many unsung heroes - the school chefs who
prepare the daily school dinners. Each entrant has one and a half hours to
cook a healthy, balanced main course and dessert within a strict budget. The
meal must appeal to 11 year old pupils.
This is an important competition since schools provide an estimated
30% of children's daily food and nutrient intake. The government's Healthy
Living blueprint encourages school caterers to help pupils eat sensibly and
adopt healthier lifestyles. The LACA School Chef of the Year award
recognizes the important work going on in school kitchens throughout the
UK. These awards, together with the launch of Maggi 'A Natural Choice',
are all part of Nestl's commitment to providing healthier menus within a
busy chef's time constraints.
51
Nestle adds two new spices to curry favour from consumers

Renovation and Innovation' is the latest mantra making the rounds in the
corridors of Swiss food major Nestle India. The underlying strategy is to
innovate around pack sizes, flavours and create new offerings to increase
penetration in the categories it operates.
Ìn recent times we have gone through a lot of reorganization and
consolidation. Future has to be through `Renovation and Innovation,'' Mr.
C Donati, chairman and managing director, Nestle India said while laying
down his mantra for Nestle India. In line with its new focus, Nestle India
has lined up a slew of initiatives for its culinary flagship brand Maggi.
Take, Maggi ketchup, for instance: the company has taken a strategic
decision to expand the tiny ketchup market by focusing on the `consumer'
rather than rely on trade discounts to merely push its products.
``We'll be refocusing on the consumer to minimize trade discounts being
offered in the marketplace,'' Mr. Donati said. While figures are not
available, the ketchup market has been witnessing a minimal growth
despite two heavyweights-Nestle with its Maggi brand and HLL with
Kissan-operating in the category. Nestle claims currently it is the market
leader with a 45 per cent market share.
To guard its turf and offset the challenge of newcomers such as Heinz,
Nestle is planning to launch new products in this category; increase
penetration of ketchup and develop more effective communication and
marketing strategies. The company has already taken the first step: it
recently launched a new TVC reviving its highly successful theme-`Ìt's
different''-to promote its Maggi ketchup. ``The aim is to expand the ketchup
market and that will drive the sauces market as well,'' the company's vicepresident marketing Mr. Sanjay Sehgal said. One area where Nestle is
putting this mantra to practice is into its best selling product instant noodles
brand Maggi.
52
Aimed at growing the instant noodles market-currently pegged at 15,00016,000 tonnes with a growth rate of 15 per cent-Nestle apart from launching
Maggi noodles' new variants, also plans to widen its target audience. Mr.
Sehgal refused to divulge more details about the brand's future strategy but if
the company does so it could mean that it will change its positioning and
communication which is at present so entrenched at targeting children. `Ìt's
a growing market and perhaps the only category where trade spend is least
since it's consumer-driven,'' said Mr. Donati. Analysts predict that this could
be a pre-emptive move on Nestls part since HLL has been eyeing the
category for a long time now. HLL which used to market Top Ramen, the
only rival brand in the category, got out of the tie-up with Indo Nissin about
two years ago.
Top Ramen is since then being marketed by Marico which in a bid to match
Nestls strength roped in star Shah Rukh Khan to market Top Ramen
aggressively. According to Mr. Sehgal, the impact was short-term. On the
other hand, the Swiss foods major claims that its earlier attempt to resurrect
the Maggi noodles brand just like it was before has paid: Nestle, claims a
whopping 85 per cent market share in the category. The company was forced
to relaunch the old formulation original Maggi noodles-sab kuch pehle jaisasometime in March 1999 soon after its new formulation was rejected by
customers in the first half of 1998. The relaunch helped the company regain
market share which had come under attack from the only rival Indo-Nissin
Foods Top Ramen brand. In Maggi soups, the company has changed its
packaging and introduced new flavours such as mixed vegetable.
The company also plans to introduce its instant soups shortly. Knorr, a brand
of International Bestfoods Ltd which was taken over by Unilever recently, is
the market leader. With such `Renovation and Innovation' in place, it might
not take too long for Nestle India to crack the culinary category. -The travel
for this story was sponsored by Nestle India. Nestle targets rural audience
going rural may not be on its agenda or part of its marketing game plan, but
inadvertently or otherwise Nestle India seems to have taken the plunge.
53
And look how: In what could be a novel way to understand and reach out to
a rural audience, Nestle India has opened about 80 sales counters to market
its select products in Moga district and its adjoining villages, in Punjab. The
counters-of an average size of 10ft by 12 ft-are an extension of Nestls milk
collection centres and are managed by the local sales team of the company.
While the premises is owned by a local farmer, the infrastructure to handle
milk and store its products-such as farm coolers, chillers, a solar geyser, a
generator and electronic weighing machines-are provided by the company.
``We opened these outlets following demands from villagers,'' says Mr.
Sanjay Sehgal, vice-president, marketing, Nestle India. And to translate
demand into sales, the company offers some of its products at a huge priceoff: 7-9 per cent discount. According to a Nestle employee manning one
such counter in the Butter village in Moga, each sales counter-on an
average-generates sales worth Rs 30,000 per month.
Sluggish sales notwithstanding, it's groundwork enough for any FMCG
manufacturer to develop its rural entry strategy or get a complete
psychographic analysis of its rural consumers and test market its products.
Here's an eye-opener on what relevance do certain Nestle products/product
attributes hold to its rural consumer: Milo, the chocolate milk beverage
targeted essentially at teenagers in the urban marketplace is the fastest
selling product here. The only surprise finding being that instead of growing
up kids, senior citizens like to have it every day with their glass of milk.
Maggi noodles-the staple diet of an urban toddler-is a favorite, here too
albeit with a difference: Soaked in milk with a bountiful of sugar, Maggi
noodles are savoured here just as your traditional Savvein. And perhaps, the
biggest surprise is that in a place flush with milk -Nestls dairy whitener
Every day, too, finds a place. Besides all these, Everyday Ghee, of course,
sells like hot cakes.
NESTLE India, in a bid to beat the slowdown in the FMCG market, has
decided to extend its fastest growing brand, Maggi, to two more product
categories. It has also begun to aggressively promote the smaller pack of
Maggi noodles at Rs 5.
54
Market sources have confirmed that Nestle is test-marketing `Maggi 2-step

mix,' a ready-to-cook paste in three flavours initially, and has decided to
relaunch the Maggi Bouillon Masala flavours as `Maggi Magic Cube' soon.
As of now, Maggi is the brand for 2-minute noodles, Chinese noodles,
ketchups and sauces for Nestle. As per the latest available data, sales of
Maggi 2-minute noodle in India are highest among all other Nestle products
worldwide.
Even as the company extends Maggi into new product categories, it has
decided to push the smaller pack of Maggi 2-minute noodles aggressively,
albeit four years after the pack was launched in India. It is promoting the
smaller pack through a lower-price point strategy in the same way as soft
drink companies Coca-Cola and Pepsi. This is being done to drive volumes
through affordability. Nestle had earlier used this strategy effectively for
Nescafe coffee, by launching Nescafe Redimix in Re 1 and Rs 10 packs.
Analysts say Nestle, which faced one of the most challenging years in the
FMCG industry in 2003, has realized that unless it continuously innovates in
an endeavor to provide value-for-money to consumers, the company's
bottom-line may be impacted in the long run.
Over a period of time, Nestle has restructured its brand portfolio to phase out
several products with slow offtake, including Maggi pickles and jam,
Milkmaid dessert mixes, while completely abandoning its packaged water
business.
Another brand, Milo (chocolate energy food drink), is being reviewed to
enhance its competitiveness. The company has instead added several new
products to its portfolio to keep up with fast-changing market preferences.
While Nestle is not saying what led it to enter the cooking-paste market,
where established players such as Dabur Foods find the going tough, sources
said Maggi Magic Cubes will hit the market in reformulated versions after
its test-launch is completed.
The Rs 20-crore cooking-paste market registers an annual growth rate of just
about 18-20 per cent and comprises Dabur Homemade and Kissan in the
tomato-puree segment, besides regional players. So far, not many established
players other than Dabur Foods have evinced interest in entering this
category.
55
Market sources said the 2-step mixes are being test marketed in the Punjab,
Pune and Delhi markets at present in three flavours: Paneer Tikka, Chicken
Tikka and Chicken Biriyani. How the market reacts to these flavours will
probably determine whether Nestle will go in for any further options in the
cooking-paste segment.
ACCORDING TO THE NESTLEANNUAL REPORT FOR

2006
In the Prepared Dishes and Cooking Aids category, the MAGGI brand
witnessed a very good performance and continued to lead the market for
Instant Noodles, Soups,
Sauces and Ketchups, doing pioneering working developing new products.
During 2005 the Company had initiated the pro-position Taste Bhi Health
Bhi and launched the innovative concept MAGGI Vegetable Atta Noodles
and the very popular MAGGI 2-Minute Noodles were renovated to provide
Calcium and Protein for the core target group.
During 2006, the portfolio was further supplemented with another

innovative concept MAGGI Dal Atta Noodles, which offers the goodness of
protein from the unique combination of Atta and Dal in addition to the
wholesome nutrition of dietary fibre from the whole wheat (Atta). To
address specific consumer needs No Onion and No Garlic
56
MAGGI Noodles were also introduced in select markets during 2006. All
these initiatives will strengthen the consumers bond with MAGGI Noodles,
as it enters its
25th year of existence in the Indian market. Your Company is a pioneer in
the Instant Soups market and in the last quarter of 2005, had launched a
range of new MAGGI Healthy Soups those are even more delicious, quick to
prepare, convenient and healthy.The products were developed to cater to the
unique taste of the Indian consumers and do not contain any added MSG or
added preservative, no artificial colours are low on fats and cholesterol and
have real vegetables. As expected, with the launch of new MAGGI Healthy
Soups, the overall performance of Soups improved significantly during
2006. In keeping with your Companys focus to meet consumer needs, a new
range of Instant Soups were launched during early 2007, under the brand
MAGGI Healthy Soups - Sanjeevni that have met with a satisfactory market
response. The new range of Instant Soups brings together the Nestl know
how in developing Soups with sharper consumer insights into the relevance
of traditional ingredients like Amla and Badam, which ensure good
health and well being.
In Sauces and Ketchups, MAGGI maintained its leadership and continued to

add new and innovative products to its range. The portfolio of Sauces with
the unique taste of Chutney was strengthened with the addition of MAGGI
Teekha Masala,
57
Indians eat most Maggi noodles in the world

What Xerox is to photocopier and Colgate to toothpaste, Maggi
is to noodles in India. And this is no idle boast. Hear it out from
Nestle India chairman and managing director Carlo Donati.
India has emerged as the largest consumer of Maggi noodles

58
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 Indias topline. 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 vicepresident (research) Nikhil Vora.
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 mid1990s. Maggi macaroni bombed and pickles didnt do well either. Maggi
soups and sauces chugged along and today have a decent presence in the
market.
59
Maggi noodles acceptance among Indian consumers didnt 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.
60
CHAPTER 5
ANALYSIS
61
FINDINGS AND ANALYSIS

GENERAL FINDINGS
Having carried out an analysis of the customer base, it is possible to
understand who the customers are and what they want. Segmentation is a
critical factor. It is of utmost importance to know which segment to target to
achieve maximum profitability. The study also reveals the various uses of
the product. This point increases the importance of segmentation. The
factors and circumstance that affect the buying behavior and purchase
pattern emphasize the need for promotion and provides hints as to when and
how the products can be promoted and advertised. All in all, the customer
analysis reveals various aspects of the consumer base and enables us to
know and understand the market. This knowledge would certainly be
irreplaceable when it comes to marketing and selling the product.
74% of the people asked were using maggi products on day to day
basis.
62
76% of the people were extremely satisfied with maggi products.
63
Maggi 2-minute noodles emerged as the most popular and most consumed product.
Almost all of those asked said that maggi products were affordable to all. nobody
thought of them to be unreasonably overpriced. TOP
64
Maagi products are consumed mainly consumed as the consumer trusts their quality.
also, they are affordable making them easy to purchase for all. TOP
65
66
Pollmaggi products were rated by people showing the

following result.
67
CHAPTER 6
CONCLUSION
68
Conclusion
The Maggi range is designed to combine chefs' requirements for tasty
wholesome food with consumers' requirements for more nutritionally
balanced, healthier meals. Maggi products are carefully researched
and developed products designed to give customers more of what they
want.
69
CHAPTER 7
70

Books:
Marketing Management
Marketing
Principles of Marketing
Marketing Management
Kotler Philip
Gandhi J. C.
Palmer Adrian
Ramaswamy V. S.
News Papers:
The Economic Times.
The Times of India.
Web Sites:
Specific Sites
www.nestle.in
www.nestle.com
www.sirindia.com
Search Sites
www.google.com
www.indiatimes.com
www.yahoo.com
www.dogpile.com
www.askjeeves.com
71

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