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A project on Research and Methodology

Submitted to University of Mumbai In the partial fulfillment of BMS Degree By the students of Class: SY BMS Div: A Semester :Fourth Group Members Khan Shazia Pooja Macwan Parmar Reema Sana Sayyed Sana Shaikh Shirin sheikh Studying at : Rizvi College of Arts, Science, Commerce Bandra (West), Mumbai 400050. For the Academic Year 2009- 2010. 24 29 38 44 50 60

ACKNOWLEDGEMENT.
We would like to thank our professor; Mr Samir Virani who gave the opportunity to make this project through which we have gained valuable information on the topic Maggi. We would also like to thank all my friends for helping and making the project successful. These acknowledgements are one way where we can actually thank the people who have been instrumental in the making of this project. With their help the project was done with ease. We would like to thank a lot of people without whose co-operation and support working on this project would not have been so pleasurable and interesting.

CERTIFICATE
I professor Mr Samir Virani here by certify that Khan Shazia, Pooja Macwan,, Reema Parmar, Sana Shaikh, Sana Sayyed and shirin shaikh of SY.BMS. (Div A) of Rizvi College of Arts, Science, Commerce & Management has completed a project on the information Maggi in the academic year 2009 2010. The Information submitted is True & original to best of my knowledge.

Signature of the principal Date : 13/02/2010 Place : Mumbai

Signature of Professor

DECLARATION
Our group:- Khan Shazia, Pooja Macwan,, Reema Parmar, Sana Shaikh, Sana Sayyed, and Shirin Shaikh of Rizvi College of SY.BMS. (Div A) hereby declare that we have completed this project on Maggi in the academic year 2009 2010. This information provided by us is true and original to the best of our knowledge.

Khan Shazia Pooja Macwan Parmar Reema Sana Sayyed Sana Shaikh Shirin Shaikh

24 29 38 44 50 60

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INDEX
Sr. No 1 2 3 4 5 6 7 8 9 10 Particulars Introduction to Maggi Brand Story Various products of Maggi Taste and preference of consumers Demography and psychography of consumers Market Share SWOT analysis of Maggi brand Research methodology Questionnaire Analysis of questionnaire Pg. No 7 8 9-10 11-12 13 14-15 16 17-18 19-21 22-25

INTRODUCTION TO MAGGI
Maggi is a Nestl brand of instant soups, stocks, bouillon cubes, ketchups, sauces, seasonings and instant noodles. The original 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 improving the nutritional intake 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 1897, Julius Maggi founded the company Maggi GmbH in the German town of Singen where it is still established today. Maggi Comes to India teething troubles Maggi noodles was launched in India in the early1980s. Carlo M. Donati, the present Chairman and Managing Director of Nestle India Ltd, brought the instant noodle brand to India during his short stint here in the early eighties. At that time, there was no direct competition. The first competition came from the ready-to-eat snack segment which included snacks like samosas, biscuits or maybe peanuts, that were usually the bought out type. The second competition came from the homemade snacks like pakoras or sandwiches. So there were no specific buy and make snack! Moreover both competitors had certain drawbacks in comparison. Snacks like samosas are usually bought out, and outside food is generally considered unhygienic and unhealthy. The other competitor, homemade snacks overcame both these problems but had the disadvantage of extended preparation time at home. Maggi was positioned as the only hygienic home made snack! Despite this, Nestl faced difficulties with their sales after the initial phase. The reason being, the positioning of the product with the wrong target group. Nestle had positioned Maggi as a convenience food product aimed at the target group of working women who hardly found any time for cooking. Unfortunately this could not hold the product for very long. In the course of many market researches and surveys, the firm found that children were the biggest consumers of Maggi noodles. Quickly they repositioned it towards the kids segment with various tools of sales promotion like colour pencils, sketch pens, fun books, Maggi clubs which worked wonders for the brand. Maggi was positioned as 2-minute noodles with a punch line that said Fast to cook! Good to eat! And this gave the implied understanding to the consumer that it was a between meals snack. The company could have easily positioned the product as a meal, either lunch or dinner. But, it chose not to do so, because the Indian consumer mindset did not accept anything other than rice or roti as a meal. Hence trying to substitute it with noodles would have been futile. The firm did not position it as a ready-to-eat meal either, as the housewife prefers to make a meal for her kids rather than buy it for them. And if she can make it in two minutes with very little effort, then obviously its a hit with her! Whats more, if kids also love the taste, the product is as good as sold! So the 2minute funda coupled with the yummy taste worked!

BRAND STORY
Launched in 5 flavors initially Masala, chicken, Capsicum, sweet & sour, and Lasagna Maggi had to fight hard to be accepted by Indian consumers with their hard-to-change eating habits. The packaged food market was very small at this time, Nestle had to promote noodles as a concept, before it could promote Maggi as a brand. It therefore devised a two-pronged strategy to attract mothers on the convenience plank and lure kids on the fun plank. Gradually, the market for instant noodles began to grow. The company also decided to focus on promotions to increase the brand awareness. In the initial years, Nestle promotional activities for Maggi included schemes offering gifts( such as toys and utensils) in return for empty noodles pack. According to analysits the focus on promotion turned out to be the single largest factor responisible for Maggis rapid acceptance. Nestle\s Managers utilized promotions as measured to meet their sales target. Gradually, sales promotion became a crutch for Maggi noodles sales. Later many of the Maggis extensions also made considerable use of promotional schemes. The focus of all Maggis extensions was more on below the line activities rather than direct communication. In addition to promotional activities, Maggi associated itself with main stream television programme and advertised heavily on kids programme and channels. After its advertisements with taglines like mummy bhookh lagi hai, bas do minute and fast to cook good to eat Maggis popularity became highly attributed to its extremely high appeal to children. As a result, Maggis annual growth reportedly touched 15% during its initial years.

VARIOUS PRODUCTS
The product mix of Maggi is divided into various categories defined below. The company has launched various products under each category as mentioned below. 1. Noodles Maggi 2-Minute Noodle ( Masala , Chicken, Curry and Tomato) Maggi Dal Atta Noodles ( Sambhar taste) Vegetable Atta Maggi Noodles Maggi Rice Noodles (Lemon Masala, Chilly Chow and Shahi Pulao) Maggi Cuppa mania (Masala yo, Chilli chow yo) 2. Sauces Teekha masala Tomoto chatpat Imli khata mitha Tomato ketchup Hot and sweet Tomato pudina Ginger, Garlic & Coriander Maggi Oriental Chilli Garlic Ginger, Garlic & Coriander 3. Maggi Pichko 4. Soups Healthy Chef Style - Cream Mushroom - Sweet Sour Tomato Noodles - Tangy Tomato Vegetables Home Style - Creamy Chicken - Mixed Vegetable - Rich Tomato Chinese Style - Chinese Hot Sour Chicken - Chinese Sweet Corn Chicken - Chinese Sweet Corn Vegetables - Chinese Hot & Sour Vegetables

5.Maggi soup sanjivni Amla Badam Spinach Dal Tomato 6. Maggi bhuna masala Bhuna masala for gravy dishes Bhuna masala for vegetable dal 7.Maggi magic cubes Chicken Vegetarian masala

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TASTE AND PREFERENCES OF CONSUMERS

Health is the flavour of the season. Food companies in India are growing aware of the increasingly changing consumption trends and taste preferences among the Indian junta. No surprises, but this is the reason more and more companies are coming up (or are actually re-marketing) with products that are healthy. Take for example Coke and Pepsi; both have already started looking into the non-carbonated drinks category section. Maggi first introduced in the market Maggi Atta Noodles which it claimed was a healthy food as it was made of wheat flour followed by soups. Nestle India, in an effort to carry on with its trend of providing the Indian consumers healthy food recently introduced a range of Healthy Soups. The entire range consists of the following; maggi tomato, mixed vegetable, tomato vegetable, mushroom, chicken, sweet corn chicken and hot and sour vegetable. The product is priced at Rs 25 for 70 grams. Maggi became successful because it understood consumers . The brand never wanted to change Indian consumer's habit. It did not had ambitions about changing Indian's breakfast or dinner preferences. What Maggi did was to slowly attach itself to Indian consumer's need without disruption. Maggi was also closely watching consumer preferences.When consumers wanted healthy food, Maggi launched Atta Noodle variants that was healthy . More importantly this move addressed the concerns of Homemakers. The brand extended itself to multiple segment but without diluting the core brand equity. Maggi over these years have made lot of mistakes. It made mistakes because the brand was willing to experiment. More importantly the brand learned from those mistakes and corrected itself. Maggi also invested heavily in brand building. The campaigns for one of Maggi's products were always there in the media which kept the brand fresh in the mind of the consumers. Maggi personifies the basic principles of understanding consumers, innovating and investing in the brand. Maggi is one packaged food brand that has only seen its popularity grow in the past many years and the secret to the success is that instead of trying to change the food habits of consumers, it has tried to align itself with local tastes and preferences with the fast to cook and good to eat promise.

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To commemorate its successful journey through a quarter of a century in the worlds largest consumer market, the brand, last year, launched an innovative campaign inviting its loyalists to share with it their Maggi stories and promised to broadcast them to the world at large, thereby, making them the superstars overnight. Along with television commercials, which aired individual consumer stories of their lasting memories of Maggi, the brand displayed pictures of these loyal customers on the Maggi packs. Nestle also introduced a website Meandmerimaggi.in for engaging with them. The company also rewarded its consumers by adding to the Maggi portfolio, that hitherto had sauces and soups in various flavours, a range of prepared dishes and cooking aids such as Maggi Bhuna Masala and Maggi Pazzta. So far focussed on urban consumers, the company also made a pitch for rural consumers by launching Maggi Rasile Chow noodles at an inviting price of Rs4. Again, local tastes and recipes have been at the core of all these marketing innovations. Creating delight and happiness in everyday meals is not just about providing tasty food. It is about providing taste and health in a convenient combination, says Shivani Hegde, general manager, foods.

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DEMOGRAPHY CONSUMERS

AND

PSYCHOGRAPHY

OF

Demography:1) Age and sex: Maggi products are consumed by people of different age groups. They are consumed by children, teenagers, adults as well as old people. They are consumed by both genders male and female.

2) Income :- Maggi products are available at reasonable prices. So they are consumed by the lower, middle as well as the higher class.

3) Religion and nationality:- Maggi products are famous and are consumed by people of all religions and nationality.

Psychography:-

1) Attitude:- Consumers of maggi have a positive attitude towards the product which makes it the leader in the market. Maggi dominates the market.

2) Lifestyle:- Lifestyle determines the way of living of people. It describes how a consumer leads his life. Maggi products are consumed by all.

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MARKET SHARE

Maggi's Market Share in Ketchup Category

Maggi has a

45% 55%

Maggi Others

market share of 45% which is a high percentage. It dominates the market in the ketchup segment.

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Maggi's Market Share in Noodles Category

20% Maggi Others 80%

Maggi has a market share of as high as 80% in the noodles segment. It dominates the market. It is the leader in this segment.

SWOT ANALYSIS OF MAGGI BRAND

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The SWOT analysis of Maggi brand clearly indicates the strengths of Maggi as a Brand in Indian market. The Brand was found to be a leader in its category of Noodles, with strong customer loyalty. Intensive distribution of Maggi as a Brand was seen in urban areas of the country. The major threats of the brand as shown in the figure below indicates that Maggi has made several attempts to revamp itself as a Healthy Product but till date its perseverance towards the tag line is low by the consumers. The brand is in the growth stage of product life cycle with a strong inclination towards the maturity stage.

STRENGTH Market leader in their segment Strong brand loyal consumer base Wide range of distribution channel Product according to the need of Indian consumer Innovative Product

WEAKNESS Product are dependent on each other Not so much presence in rural market

SWOT ANALYSIS

OPPORTUNITY Increasing number of working youth Product has been acceptable in youth category Shift to rural market Changing preference of consumer towards Chinese food and fast food. Can foray into other food markets with its strong Brand name

THREAT Price war with competitors. Strong presence of regional competitors Consumers dont perceive it as a Healthy Product

RESEARCH METHODOLOGY:-

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OBJECTIVES OF QUESTIONNAIRE
To understand the influence of Maggi as a brand on consumers mind set.

Sources of Brand equity of Maggi like Brand awareness, Brand image, Brand association, Brand recall.

To understand the Brand performance of Maggi products.

To understand Brand Imagery, Brand Quality perceived by customers, Brand credibility, consideration, superiority and feelings.

To know the medium of media through which they became aware of Maggi.

METHOLODOGY

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The research will be carried out in the form of a survey. This will include primary research in addition to secondary research as stated below. The survey research method will be descriptive research design. Each respondent will be interviewed through a Questionnaire. The sample will be selected by a simple random sampling method. The survey will address the following information area: Information Areas: The objective as spelt out can be elaborated into specific information areas to be studied. How do customers perceive Maggi as a stable brand, their perception of noodles and how do they associate themselves with Maggi? Are the consumers aware of Maggi Brand or they associate noodles with some other brand? Which product from the entire basket of Maggi products do the consumers consider as the best selling product for Maggi and to which the consumers frequently buy? Are the consumers willing to accept Maggi brand extensions to some other products like chocolate, juices, chips etc?

QUESTIONNAIRE
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Q 1) Are you a consumer of Maggi? Yes No

Q 2) What comes first in your mind when you hear the word Maggi ? Noodles Fast food Snacks None of these

Q 3) what is the brand that comes to your mind when we say the word noodles? Maggi Top Ramen Surya Noodles Anil Noodles Q 4) Rank the following Maggi products w.r.t. frequency of purchase with 1 being the highest rank RANK Noodles Ketchup Soup Pickles Cubes _________ _________ _________ _________ _________

Q 5) With what products would you associate the brand Maggi? Ketchup Noodles Soup Masala Q 6) On a scale of 1 to 5 rate Maggi on the following parameters Taste Variety/Flavours Hygiene/Purity Availability Packaging (SKUs) ____________ ____________ ____________ ____________ ____________

Q 7) Rank the categories which Maggi should look in future in order of your importance :

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Chocolates Salted Potato Chips Fruit Juices Processed foods(Ready to use pastes, masalas) Others ( Please mention)

_____________ _____________ _____________ ____________ _____________

Q 8) How do you perceive Maggi products? Good for health. Ready to eat. Junk food Tasty / Fun eating

Q 9) Which Maggi products in noodles category do you regularly buy? (Repositioning awareness) Maggi masala Maggi vegetable atta noodles Maggi dal atta noodles Maggi rice noodles mania Others

Q 10) You came to know about Maggi from: Newspapers Radio T.V advertisements Word of mouth Other source

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Q 11) Do you remember any of the T.V. advertisements of Maggi Tomato Ketchup? Yes No

Q 12) Do you perceive Maggi noodles as a healthy product? Yes No Q 13) If No then your suggestions for improvement as a healthy product? ________________________________________________ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

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ANALYSIS OF THE QUESTIONNAIRE

Q 1) Are you a consumer of Maggi? Yes No

Analysis: The survey suggested that out of 20 consumers all 20 are consumers of maggi products. Maggi is quite famous with the different types of consumers in the market. Our survey took the sample of consumers in general.

Q 2) What comes first in your mind when you hear the word Maggi ? Noodles Fast food Snacks None of these

Analysis: The survey suggested that 14 out of 20 consumers associated maggi with noodles. 3 for snacks and masala each. People are familiar with maggi as a brand for noodles in majority.

Q 3) what is the brand that comes to your mind when we say the word noodles? Maggi Top Ramen Surya Noodles Anil Noodles Analysis: The survey suggested that Maggi is the most popular brand with consumers of noodles. It suggests that 18 out of 20 consumers associate noodles with maggi.

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Q 4) Rank the following Maggi products w.r.t. frequency of purchase with 1 being the highest rank RANK Noodles Ketchup Soup Pickles Cubes _________ _________ _________ _________ _________

Analysis: Most of the consumers have ranked noodles as 1. People purchase maggi noodles in majority. The frequency of the purchase of maggi noodles is high.

Q 5) With what products would you associate the brand Maggi? Ketchup Noodles Soup Masala Analysis: The survey suggested that 12 out of 20 people associated the brand maggi with noodles. 6 consumers associated it with masala. 2 consumers associate the brand with soup and 1 with ketchup. Q 6) On a scale of 1 to 5 rate Maggi on the following parameters Taste Variety/Flavours Hygiene/Purity Availability Packaging (SKUs)

____________ ____________ ____________ ____________ ____________

Analysis: The products of maggi have been rated well above 3 in the above parameters by most of the consumers.

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Q 7) Rank the categories which Maggi should look in future in order of your importance : Chocolates Salted Potato Chips Fruit Juices Processed foods(Ready to use pastes, masalas) Others ( Please mention) _____________ _____________ _____________ ____________ _____________

Analysis: According to the survey, maggi should look for salted potato chips in future as it is highly demanded by the people in the market.

Q 8) How do you perceive Maggi products? Good for health. Ready to eat. Junk food Tasty / Fun eating

Analysis: The survey suggests that most of the consumers perceive maggi products as being good for health.

Q 9) Which Maggi products in noodles category do you regularly buy? (Repositioning awareness) Maggi masala

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Maggi vegetable atta noodles Maggi dal atta noodles Maggi rice noodles mania Others

Analysis: The survey suggested that most of the consumers regularly buy maggi vegetable atta noodles while a few of them preferred maggi masala noodles.

Q 10) You came to know about Maggi from: Newspapers Radio T.V advertisements Word of mouth Other source

Analysis: The survey suggested that a majority of the people came to know about maggi through television advertisements. Maggi advertisements are quite famous with the consumers.

Q 11) Do you remember any of the T.V. advertisements of Maggi Tomato Ketchup? Yes No

Analysis: The survey suggested that the advertisement of maggi tomato ketchup is remembered by the consumers. 12 out of 20 consumers remember the advertisement of tomato ketchup.

Q 12) Do you perceive Maggi noodles as a healthy product? Yes No

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Analysis: The survey suggested that majority of the consumers perceive maggi noodles as a healthy product. The survey suggests that 20 out of 20 consumers perceive maggi noodles as a healthy product.

Q 13) If No then your suggestions for improvement as a healthy product? ________________________________________________ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Analysis: The survey suggests that 20 out of 20 consumers perceive maggi noodles as a healthy product and need no improvement as a healthy product.

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BIBLIOGRAPHY www.google.com www.wikipedia.com

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