Subject: Research Methodology Project Report on:

Maggi and Top Ramen Comparison

Submitted by: Dilip Sanklecha Ekta Upadhyay Rohit Shetty Richa Dhaundiyal Prashant Manave Roshan Gamre P-07 P-08 P-27 P-48 P-25 P-28

Master of Management Studies Second Semester Dr. V. N. Bedekar Institute of Management Studies, Thane

Submitted to: Ms. Gitanjali Kapoor Mam

Index

Chapter No. 1 2 3 4 5 6 7 8 9

Chapter Name Indian food processing industry Over view of Maggi Over view of Nissin- Top Ramen Hypothesis Survey Results Limitations Recommendations Conclusion References

Page No. 2 5 7 9 10 16 17 18 19

1. Indian food processing industry

Overview: Processed food market is projected to be over US$ 100 bn primarily processed food market accounts for 60% value-added processed food market is around 40% The food processing industry in India has a share of 1.5% in the total GDP of the country Processed food market accounts 9% of total manufacturing industry in India Indias share in world trade in respect of processed food is about 1.6%

Source : The Ministry of Food Processing Industries

Structure of the Indian Food Processing Industry:

Mainly the Indian processing food market is dominated by unorganised players, small scale industry is also accounts for 33% & only 25% by the organised players so in this market organised players have huge scope of expansion.

2. Overview of Maggi......

Maggi 2-minute Noodles are one of the largest & most loved snack food brands that define the Instant Noodles category in India. The original company came into existence in 1872 in Switzerland Maggi brand was found by the Maggi family in Switzerland. 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. In 1863 Julius, the son of an Italian immigrant came up with a formula to bring added taste to meals which later paved the way for Maggi. Maggie had merged with Nestle family in 1947. Nestle group of companies introduced Maggi brand in India in 1982, with the launch of Maggi noodles. The brand is popular in India, South Africa, Brazil, Nepal, New Zealand, Australia, Malaysia, Singapore, Pakistan and the Philippines; in several countries it is also known as "Maggi mee" Over the years Maggi has launched several products under its Brand Name. With more than 15 flavors in stock, it is widely tasted & admired for its Original Maggi Flavor. Even though the brand Maggi introduced 15 new flavours, but still it is admired and liked for its original flavor. Adaptability to local food habits. The best part of Brand Maggi is its adaptability to local food habits. In fact it is the secret of success of Brand Maggie. For Example, with growing health conscious class of people, it has recently introduced the "Ata Noodles" made of wheat flour instead of much widely used refined flour in other noodle products. This has created a positive impact among particular class of subscribers such as health conscious mothers who prefer Maggi as afterschool snacks for kids at home.

Flavours and Variety

These are some of the variants of Maggi noodles:

The best part of the recipe is that it takes a little time to cook something of best know taste without much of ingredients & hassles of cooking. You don't have to be a cooking expert or something like that to make it. And except water, everything comes readymade with the pack itself.

3. Over View of NISSIN

Nissin founder, Momofuku Ando, has always instilled a sense of commitment and quality in Nissin products. Today, Nissin's corporate philosophy inspires this same commitment to taste, convenience, and quality. Mr. Ando began the company as part of a humble family operation back in 1948. Faced with sparse food sources after World War II, Mr. Ando realized that a quality, convenient ramen product would help to feed the masses. His goal was to create a satisfying ramen that could be eaten anywhere, anytime. In 1958, Nissin introduced "Chicken Ramen", the first instant ramen. Ironically, it was considered a luxury item, since Japanese grocery stores sold fresh Japanese noodles (udon) at one-sixth the cost of Mr. Ando's new food concept . Today, Nissin has 21,900 employees, enjoys net sales of over $3.2 billion per year, operates 29 plants in 11 countries, and its products are sold worldwide.

Top Ramens Entry in India

Top Ramen is the second largest Noodles brand in India trying hard for the past 18 years to beat Maggi Noodles. Top Ramen is a global brand from Nissin. Launched in 1991, Top Ramen has been trying all possible marketing tool to dethrone Maggi. Top Ramen had an interesting distribution strategy . For the past 10 years, the brand has been distributed by Marico. It is a case of marketing alliance where Top Ramen was utilizing the distribution strength of Marico. In 2008, the alliance was mutually called-off . Now Nissin is building its own distribution network. Top Ramen had its share of innovations. This brand is credited with innovating a new category of cup-noodles in Indian market. The difference between cup noodles and instant noodles is that cup-noodles need not be cooked, it is ready to eat just after adding hot water into it.
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Top Ramen currently holds more than 90 % share in the cup-noodles market. Maggi has recently entered the cup-noodles market with its brand Cuppa- Mania. It is expected that the entry of new players will expand the category. . Unlike instant noodles where the brands are targeting kids, Cup-Noodles is targeting adults. The segment aimed by Top-Ramen is 16-35 . Top Ramen is also credited with the launch of curry-noodles in India. While ordinary noodles are dry, curry noodles have both gravy. Top Ramen to me is heavily associated with Curry Noodles.

4. Hypothesis

The whole objective of our research is to find out the customer preference and brand recall for which brand is more. Therefore, two hypothesis have been formed. They are: 1. H0 There is no significance difference between customer preference in Maggi and Top Ramen H1 There is more customer preference for Maggi 2. H0 There is no significance for brand recall of Maggi and Top Ramen H1 There is more brand recall for Maggi

Sampling Method: - In the research Non-Probability Sampling method is used. And, in that convenience sampling method is used.

Questionnaire type: - In questionnaire, Closed ended questions are used.

Coverage Area: - Survey is conducted in the Mumbai, Thane area.

Sample Size: - Sample size is 120.

5. Survey results

1. In your free time which snacks do you prefer?

24%
Maggi

76%

Top Ramen

Here we can see that Maggi is preferred by 76% and Top Ramen is preferred by 24%. Probably, whenever we think about instant noodles Maggi comes to our mind first.

2. How frequently do you eat these snacks?

35%

12% 53%

Daily Weekly Occasionally

Here we can see that weekly is 53%, occasionally 35% and daily 12%. Probably Indian consumers mostly prefer Indian snacks and Indian homemade snacks.

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3. Which pack size do you prefer?

60% 50%

40%
30% 20% 10% 0%
One pack Two pack Family pack

Here we can see that two pack is most preferred by 50%, one pack by 35% and family pack by 15%.

4. Which brand offers more value for money?

29% 71%

Maggi Top Ramen

Here we can see Maggi is most preferred by 71% and 29% prefers Top Ramen. Probably consumers find more value for money in terms of quality, quantity and so on.

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5. Which brand offers variety in taste?

80% 70% 60% 50% 40% 30% 20% 10% 0% Maggi Top Ramen

Here we can see that Maggi is most preferred by 75% and 25% prefers Top Ramen. Probably maggi provides more variety in taste like they have curry noodles, Chinese, Atta noodles and so on.

For finding out the customer preference of Maggi and Top Ramen we have considered three questions. They are: 1. In your free time which snacks do you prefer? 2. Which brand offers more value for money? 3. Which brand offers variety in taste?

H0: There is no significant difference in customer preference of Maggi and Top Ramen. H1: There is more customer preference for Maggi For finding out customer preference we have used Chi-square method. Chi-square method:X2cal =28 Table Value=6.314 X2cal > Table value Therefore, null hypothesis is rejected and alternate hypothesis is accepted.

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Therefore, there is more customer preference for Maggi. 6. Which brand's latest advertisement you can recall?

People can easily recall Maggi advertisement than Top Ramen. This is clearly proved with the answer to question with 80 percent response towards Maggi.

7. Rate Maggi and Top Ramen on following Features:

a. Availability

Maggi is easily available everywhere as compared to Top Ramen. Among 120 respondents 79 feel that its availability is excellent.

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b. Price

Majority of people feel that price of Maggi is affordable and value for money pricing is provided by Maggi.

c. Packaging

Packaging is the only feature where there is not much difference in both the brands. Both brands are almost have attractive and nice packaging.

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d. Offers Provided

Offers provided by Maggi are more than Top Ramen. They are coming with different offers in regular intervals like bundling, different, flavors, etc.

Second hypothesis was: H0: There is no significant difference in brand recall of Maggi and Top Ramen. H1: There is more brand recall for Maggi. Thus with the use of Chi-square method:X2cal =13 Table Value=6.314 X2cal > Table value Therefore, null hypothesis is rejected and alternate hypothesis is accepted. There is more brand recall for Maggi.

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6. Limitations

Following are limitations of our project as following. Limited sample size We have taken the opinion of 120 students for our project but it is smaller sample size to compare the market share of maggi & Top Rammen Noodles.

Limited Coverage Area We have done our survey only in Mumbai & around suburb area which is small in size as both the companys are present in almost all state of India.

Not consider Substitute Only noodles are not the fast food items loved by Indians but other like chips, pasta etc. which we didnt took into account.

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7. Recommendation for Top Ramen

Promotion failure Top Ramen has introduce many different varieties in taste but still not able to capture large market. Its promotion strategy has failed. It needs to adapt more aggressive marketing strategy.

Focus on the rural market The rural market of India is still untapped Top Ramen can penetrate in this market.

Enter into new segments Top rammen should enter into newer segments like maggi has entered into ketchup segment.

Recommendation for Maggi

Rural market As said earlier rural market is untapped yet also by Maggi. It needs to strengthen its distribution channels in the rural areas.

Brand ambassador It can make use of brand ambassador in its advertisements.

Constant Eye on Competition It needs to keep an eye on competition. Although there not many competitors at present in future this segment will attract lot of competition. Maggi will have to keep constant watch on competitors.

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8. Conclusion

The income of an average individual in India is grooving and their life style is changing accordingly. Life has become faster so Fast to cook Ready to eat Itens will be on high demand but constant eye on competitors and innovation is the key to success.

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9 References:

Kothari,C. Panneerselvam,R.

Webliography:

www. Mofpi.nic.in www.marketing practice.blogspot.com www.toprammen.com www.nestle.in

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