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ABHISHEK SRIVASTAVA BEENA VENUGOPALAN JOTINDER SINGH NISHANT DHORELIYA RADHA A SOUBHAGYA RATH YOGESHWAR DUTT

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EXECUTIVE SUMMARY
Nestlé India is a subsidiary of Nestlé S.A. of Switzerland. With six factories and a large number of co-packers, Nestlé India is a vibrant Company that provides consumers in India with products of global standards and is committed to long-term sustainable growth and shareholder satisfaction. The company is known for its brands in the Milk Products & Nutrition, Prepared Dishes & Cooking Aids, and Chocolates & Confectionery segments. Nestlé leads the value sales of noodles in India with a market share of 79.3%. A testament to Nestlé's domination of the sales of plain noodles is the fact that for its instant noodles brand Maggi, among all its global offices, India accounts for the highest level of volume sales for the company. This marketing plan analyses the current marketing mix of Maggi Noodles, studies the popularity of the two new health variants Vegetable Atta and Dal Atta Noodles and makes suggestions with regard to introducing a new brand “Cup O Maggi” in the cup noodles segment. Various tools like surveys and secondary sources of information have been utilized for the purpose of this analysis.

TABLE OF CONTENTS
2. SITUATION ANALYSIS..................................................................................................... 5 2.1 Market Summary............................................................................................................ 5 2.1.1 TARGET MARKETS ........................................................................................... 5 2.1.2 MARKET DEMOGRAPHICS ............................................................................. 5 2.1.3 MARKET NEEDS ................................................................................................. 6 2.1.4 MARKET TRENDS .............................................................................................. 6 2.1.5 MARKET GROWTH............................................................................................ 8 2.2 SWOT............................................................................................................................ 10 2.3 COMPETITION........................................................................................................... 11 2.3.1 TOP RAMEN ....................................................................................................... 11 2.3.2 ITC SUNFEAST PASTA .................................................................................... 11 2.4 CURRENT MAGGI NOODLES BRAND................................................................... 12 IDENTITY/KAPFERER’S PRISM................................................................................... 12 2.5 PRODUCT OFFERING .............................................................................................. 13 2.6 PRODUCT DISTRIBUTION ...................................................................................... 13 2.7 KEYS TO SUCCESS.................................................................................................... 14 2.7 CRITICAL ISSUES AND CHALLENGES ................................................................ 14 3. MARKETING STRATEGY............................................................................................. 15 3.1 MISSION...................................................................................................................... 15 3.2 MARKETING OBJECTIVES ..................................................................................... 15 3.3 INDUSTRY SEGMENTATION .................................................................................. 16 3.4 TARGET SEGMENTS FOR MAGGI NOODLES ..................................................... 22 3.4.1 MAGGI 2 MINUTE NOODLES ........................................................................ 22 3.4.2 MAGGI CUP O NOODLES ............................................................................... 23 3.5 POSITIONING OF MAGGI ....................................................................................... 23 3.5.1 MAGGI 2 MINUTE NOODLES ........................................................................ 23 3.5.2 CUP O MAGGI.................................................................................................... 23 4. MARKETING MIX .......................................................................................................... 24 4.1 CONSUMER SOLUTION ........................................................................................... 24 4.1.1 IMPROVING THE DAL ATTA VARIANT..................................................... 24 4.1.2 NEW PRODUCT: THE CUP-O-MAGGI ......................................................... 24 4.1.3 PACKAGING ...................................................................................................... 24 4.2 CONSUMER COST ..................................................................................................... 25 4.3 CONVENIENCE.......................................................................................................... 26 4.4 COMMUNICATION.................................................................................................... 27 4.5 MARKETING RESEARCH ........................................................................................ 28 5. FINANCIALS .................................................................................................................... 31 5.1 BREAKEVEN ANALYSIS OF A 100 TONNE CAPACITY PLANT OF CUP O MAGGI NOODLES ........................................................................................................... 31 5.1.1 BREAK-EVEN ANALYSIS................................................................................ 31 FINAL TOTAL COST ANALYSIS ............................................................................ 33 5.1.2 ANALYTICAL BREAK-EVEN ANALYSIS.................................................... 33 5.1.3 GRAPHICAL BREAK-EVEN ANALYSIS ...................................................... 34 5.2 SALES FORECAST..................................................................................................... 34 APPENDIX A: INDIAN INSTANT NOODLES MARKET GROWTH GRAPHS ........ 36 APPENDIX B: NESTLE MAGGI NOODLES FORECAST RETAIL SALES .............. 37

1. The company could have easily positioned the product as a meal. who were therefore left with very little time to prepare meals. After conducting an extensive research. the firm found that the children were the biggest consumers of Maggi noodles. sauces and other flavourings. Maggie had merged with Nestle family in 1947. but did not. 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. this brand has become synonymous with noodles. as it was targeted towards the wrong target group. No doubt the ads of Maggi have shown a hungry kid saying “Mummy bhookh lagi hai” to which his mom replies “Bas do minute!” and soon he is happily eating Maggie noodles. Maggi company was producing not just powdered soups.Towards the end of the century. Quickly a strategy was developed to capture the kids segment with various tools of sales promotion like pencils. Soon after he was commissioned by the Swiss Public Welfare Society. Reprinted ‘04. Hence to capture the market it was positioned as a hygienic home made snack. the working women. 1 . a smart move. However in India (the largest consumer of Maggi noodles in the world!) it was launched in 1980 by Nestle group of companies. he came up with two instant pea soups & a bean soup. fun books. The formula clicked well and Maggi became a brand name. When launched it had to face a stiff competition from the ready to eat snack segments like biscuits. They made it a easy to cook snack that could be prepared in just two minutes. Further the MAGGI 2-MINUTE Noodles has been renovated to provide 20% of the RDA 1 of Calcium and Protein for the core target group building on the nutrition proposition “Taste bhi health bhi”.the first launch of Maggi brand of instant foods in 1882-83. Recommended Dietary Allowances for children of 7–9 years as per “Nutritive Value of Indian Foods”. published by Indian Council of Medical Research. Maggi has grown as a brand and positioned itself as a “Fast to cook! Good to Eat! “food product. Also it had other competitor the so called home made snacks which are till today considered healthy and hygienic. the son of an Italian immigrant came up with a formula to bring added taste to meals in 1863. Maggi clubs which worked wonders for it. Julius. But still this didn’t work. The history of this brand traces back to the 19th century when industrial revolution in Switzerland created factory jobs for women. The bright red and yellow colours of the packet with the brilliant blue “2-minute Noodles” printed on it has found a place on every kitchen. INTRODUCTION Ever since its launch in India in 1983. but bouillon cubes. Over the years. as a study had shown that Indian mentality did not accept anything other than rice or roti as meal. wafers etc.

SITUATION ANALYSIS Nestlé’s Maggie noodles is the leading brand in the instant noodles segment in India. single.1 TARGET MARKETS Primary target: Children (<16) Nestle plans to widen its target audience by launching new variants Vegetable and Dal atta noodles for health conscious people.urban: informed(some desire. working professionals. potential users-semi-urban. positive Psychographics: Lifestyle: Hard pressed for time .1. Behavioural: Occasions: Regular.2. 2. year) User status: first time user-rural. Maggi has regularly come up with new flavours and has recently launched two variants.Vegetable Atta and Dal Atta noodles.20. week. rural-depends on the temporal aspects of the consumer’s life(varied usage in terms of time of time of day. semi-urban. Everyday user-urban.some intend to buy) Attitude toward product: Enthusiastic. upwards Social class: Middle and upwards Family life cycle: Young. medium-semi-urban Loyalty status: hard core and shifting loyals Buyer-Readiness Stage: rural-some are aware.3%.1 Market Summary 2.000 p. Being the pioneer in the noodles market has given it a first mover’s advantage over other brands. The brand has grown to an estimated Rs 200 crore & contributes to around 10% of Nestle India’s top line.1. self-employed Sex : Unisex Income: 1. month. enjoying a market share of 79. semi-urban:some intend to buy(aware. married with children. heavy users-urban Usage rate: Heavy user-urban.2 MARKET DEMOGRAPHICS Demographics: Region: urban. 2. light-rural. informed). catering to the increasing demand for healthy snacks.a. rural (recent) Occupation: Housewives.

People prefer to have it easily available and affordable. particularly the middle class segments and the rural segments.2. presents an opportunity to makers of branded products to convert consumers to branded products. Hence the onus is on the company to make it easily available and affordable and in different sizes. smaller priced packs stimulates demand.4 MARKET TRENDS The FMCG market is set to treble from US$ 11. Maggi have settled at standard flavours such as curry.1. value growth for packaged food is predicted to remain healthy. Growth will continue to be fuelled by convenience products such as noodles and ready meals with 200 million people expected to shift to processed and packaged food by 2010 Manufacturers are introducing low-priced goods in smaller pack sizes.1.758 1 Rural 135 153 72 62.3 MARKET NEEDS The urban Indian is used to having his dinner late from around 8:30 pm to as late as 11 pm. masala.700 3. fast to cook" anytime snack and is popular across different age groups. Maggi is a fun and convenience brand which sits strongly in its position as a "good to eat. In rural areas. catering to different categories of users like the new Maggi chota pack conveniently priced at Rs 5 for 50gms.6 billion in 2003 to US$ 33. 2.In fact today. Hence a convenient snack between lunch and dinner is an often exercised option. The Indian palate is not too adventurous in terms of trying out new flavours. At 4% constant value CAGR into the forecast period. the rural marketing efforts have pushed the demand for sachets in many consumer goods . Urban 53 69 28 3. Penetration level is only 30% for Maggi Noodles in urban areas as well as per capita consumption for the Instant noodles and pasta segment is low indicating the untapped market potential. tomato and chicken and not much experimentation is necessarily required in the noodles market.3 Population 2005-06 (mn household) Population 2009-10 (mn household) % Distribution (2005-06) Markets (Towns) Universe of Outlets (mn) Urban profile Source:Statistical Outline of India (2005-2006) Burgeoning Indian population. As a result. Opportunities in practically all consumption categories arise in terms of "reach" and "medium of consumption".4 billion in 2015. Growth is also likely to come from consumer 'upgrading' in the matured product categories.

00. An average Indian spends around 40 per cent of his income on grocery products. and who have little time to prepare their own meals at home. away from their parents. Priced at Rs0. Consumption pie Source: KSA Technopak Consumer Outlook 2004. Around 45 per cent of the population in India is below 20 years of age and the young population is set to rise further. 1996 846 480 26 Consumer Profile Source: Statistical Outline of India (2005-2006) Population (millions) Population <25 years of age Urbanisation % 2001 1. While instant noodles are still not generally consumed as main meals in India. increased literacy and rising per capita income.087 565 31 Rapid urbanisation. Given the requirements for convenience and saving time. have all caused rapid growth and change in demand patterns. sachets have proved to be extremely popular in smaller towns and villages.50-1. more individuals are bucking this trend and accepting them as an option. leading to an explosion of new opportunities. however. where households cannot afford to buy larger packs due to financial constraints.markets. Increased health consciousness and abundant production of quality soyabean also indicates a growing demand for soya food segment.012 546 28 2006 1. This is. mostly restricted to busy working adults who live independently or only with their spouse. such as instant noodles. . these individuals resort to easy-to-prepare meals.

Growing by a more than robust 21% in current value and 16% in volume. FICCI Federation of Indian Chambers of Commerce and Industry has predicted an overall growth of culinary products/snack food (10%) 2.5 MARKET GROWTH General growth of the Indian Noodles sector FY 2005-2006 FICCI states that the culinary products and snack category. thus highlighting the huge potential for expansion of this industry. the growth of Maggi noodles was an impressive 15%. Only about 8-10 per cent of output is processed and consumed in packaged form. growth in noodles will be among the fastest in the various packaged food products in India. will rise to US$ 1150 by 2015 -another demand driver. the semi processed and ready to eat packaged food segment has a size of over US$ 70 billion and is growing at 15 per cent per annum. with pouch instant noodles accounting for more than 66% of the total value sales.1. has had a robust growth of 8%. currently at US$ 556 per annum. (Refer Appendix A: Indian Instant Noodle Market Growth Graphs) Current value sales of noodles in stood at slightly over Rs 9 billion. under which Maggi noodles is classified. . BRICs Report (Goldman Sachs) The BRICs report indicates that India's per capita disposable income. Spurt in the industrial and services sector growth is also likely to boost the urban consumption demand. with sales at Rs 6. Currently. Growth of Maggi Noodles FY 2005-2006 For the FY 2005-2006.75 billion and profit at Rs 2 billion.1200 1000 800 600 400 200 0 2003 2015 Incom e (US $/annum ) Rise in disposable income (US$/annum) Source:Euro monitor.

Maggi Market Share in Instant Noodles Category 79.5 77 2000 2001 2002 2003 2004 2005 2006 Maggi Market Share in Instant Noodles Category (2000-2005) Source: Euromonitor International Packaged Food in India May 2006 It has maintained a market share of around 78% despite increasing competition.5 Market Share (%) 79 78. Curry flavours) Low Relative Market Share .5 78 77. Dal Atta Noodles) Market Growth Rate Low High CASH COW (MAGGI Masala flavour) DOGS (MAGGI Tomato. The relative performances of the Maggi variants has been presented using the BCG matrix The Boston Consulting Group’s Growth-Share Matrix High STARS ( MAGGI Veg Atta Noodles) QUESTION MARKS (MAGGI Chicken.

single working professionals and student population Rapid economic growth and rising disposable incomes make a strong case for a premium brand like Maggi.3% in 2005-06. Market share has fallen from the 80% in 1998-99 to 79. Weakness Tagged as a product having no health value.2 SWOT Strengths Strong brand recall and the product is almost eponymous to the brand. Highest advertising share(72% (TV AdEx 2004-05)).3% market share in terms of value.2. Top Ramen has repositioned itself on a health platform with a new baseline “Get on Top” fortifying its product with calcium and vitamins. Upward trend of convenience food consumption. Foreign players like Wai Wai and Rum Pum have forayed into the noodles market and have made their brand presence in eastern markets while indigenous Parle is threatening to offer their distribution network to international noodle brands wishing to make an entry. Top ramen the prime competitor has come up with new exciting instant noodle offerings like cup noodles and mug noodles which threatens to eat into Maggi’s market share. Opportunities The instant noodles segment is projected to grow at a tremendous rate with the market size doubling by 2010. Market leader with 79. The product features have remained almost constant since inception in 1983 with any trial of innovation misfiring. Increase in the potential consumer base i. Emotional relationship with the consumer.(Dal Atta Noodles refer survey noodles). Threats Competition is increasing with established competitors in other segments are foraying into the noodles segment seeing the capacity of growth. The product as priced higher than its main rival Top Ramen. Huge untapped serviceable upward class rural base. A strong distribution network of the parent company Nestle. It has tried to bring in innovation but has failed. .e.

3 COMPETITION 2.3.' was the ad that brought the Top Ramen brand into limelight when it was launched in 1991.3. Oye Tomato. Curry Smoodles. This ready to cook pasta comes with a sauce maker inside the pack. Funky Chicken.2.1 TOP RAMEN 'Don't be a noodle.2 ITC SUNFEAST PASTA ITC launched India's first instant pasta snack. Made from high protein Durum wheat. b) Cup Noodles: Spicy Vegetable. Sunfeast Pasta Treat is not fried and does not contain maida. making it a nutritious snack. Market share FY 2005-2006: 14% Variety: a) Packet Noodles: Macho Masala. . be a Smoodle. Tangy Chicken Packaging and Pricing: Top Ramen Packet Noodles Pack Size (gm) 50 100 400 80 Price (Rs) 5 10 34 20 Cup Noodles Distributor: Marico Industries Distributor strength: About 130000 USP: 'Don't be a noodle. Sunfeast Pasta Treat in 2005.' innovative flavours and its cup noodles 2. be a Smoodle.

Tomato and Cheese. Variety: It is currently available in four exciting flavours: Masala. Packaging: Each pack is an 83 gm pack with a 15 gm sauce maker Distributor: ITC Limited USP: Sunfeast is made from durum wheat and is promoted as a healthy alternative to instant noodles made from the less healthy maida (a type of wheat flour that is slightly lower in quality). Hurried youth Relationship Fast to cook and good to eat. 12/.4 CURRENT MAGGI NOODLES BRAND IDENTITY/KAPFERER’S PRISM Physique Yellow packaging.for the Masala flavour and Rs. Independence . Reflection Family oriented Fun-loving Self Image Kid. “Taste bhi health bhi Maggi Noodles Culture Family.15/. Tasty Personality Playful children. Sour Cream Onion and Cheese. “Mummy bhookh lagi”.for Tomato and Cheese. Pricing: priced at Rs. Sour Cream Onion and Cheese.Market share FY 2005-2006: The ready-to-eat Sunfeast Pasta Treat has clocked 6% of the branded noodles volume in just one year. Dual Income. 2.

8 0.4 100.6 PRODUCT DISTRIBUTION Maggi Noodles is being sold through 2. CHICKEN 3. VEGETABLE DAL ATTA NOODLES: Continuing the healthy snacks trend. by value. which comprise of grocers. this variant had contributed to 11 per cent in value to the instant noodle category within 7 months of its launch. Pack Size (gm) Price (Rs) 5 10 20 38 54 72 10 10 10 13 50 13 50 MAGGI 2 Minute Noodles Masala 50 100 200 400 600 800 Chicken 100 Curry 100 Tomato 100 Vegetable Atta Noodles 100 400 Vegetable Dal Atta Noodles 100 400 Variants.8%. Datamonitor . Prices Source: Nestle India 2. CURRY 4.0 2006 62. convenience stores. MASALA: This is the original and most widely liked flavour of Maggi and hence has been brought out in 6 different packaging sizes. 2005-2006 (%) Source: Denis Mason.5 PRODUCT OFFERING Maggi Noodles comes in 4 variants: 1. supermarkets and miscellaneous channels. this was the beginning of the “Taste bhi Health bhi” focus 6.The rising popularity of the “mall-culture” in the urban and semi-urban areas also reflects on the slight increase in distribution through supermarkets / hypermarkets.0 20.60. TOMATO 5. Channel Traditional grocers Convenience stores Supermarkets/hypermarkets Others Overall 2005 63.4 100. this variant was launched in May 2006.2.0 16.8 20.0 India Dried Pasta & Noodles off-trade distribution channels.6 0.0 16. VEGETABLE ATTA NOODLES: Launched in April 2005. Packaging. The average Indian still prefers shopping through the traditional grocers or “kiranas” as can be inferred from the higher distribution of 62. the maximum in any variant 2.000 outlets (FY 2005-2006).

Continued innovation in terms of flavours and themes – from an ordinary 2 minute bite to a healthy snack.7 KEYS TO SUCCESS Maggi has had the first mover advantage with respect to the Instant noodles segment in the Indian market.2.7 CRITICAL ISSUES AND CHALLENGES To sustain its growth and maintain its position as the leader in the Instant Noodles segment: Nissin’s Top Ramen and recently ITC’s Sunfeast pasta have been eating into Maggi Noodles’ market share of the Instant Noodles Market. . 2. To be increasingly viewed as the preferred snack of Indians.

To provide line extension by introducing Cup Noodles/Mug Noodles. special additives based on consumer feedback. ANSOFF’S PRODUCT/MARKET EXPANSION GRID Existing products New products MARKET PENETRATION Existing Markets ( Upgrade existing variants of MAGGI) PRODUCT DEVELOPMENT (Introduce new variants of MAGGI) New Markets MARKET DEVELOPMENT (Finding new markets for existing variants of MAGGI) DIVERSIFICATION (Launch totally new variants of MAGGI in totally new markets) . The objectives were arrived at based on the analysis of Ansoff’s Grid. taste and health. MARKETING STRATEGY 3.3%. packaging. ingredients.3. To promote Maggi noodles as a healthy ready to eat convenient food among mothers and single working professionals. To upgrade the existing product features viz.1 MISSION To be considered as the number one snacking option of India combining the values of convenience.2 MARKETING OBJECTIVES Increase value market share to 80% in the instant noodles market by 2007-08 from the current 79. 3.

712 Pensioners: (aged 60+) Age wise break up and forecast of the population Source: UN census data.643 75.302 Tweenagers: (10-14 years old) 120.754 189.781 358. 2005 1) CHILDREN Children as an age group are a marketer’s delight.137 160.728 2015 184.193 440. children know exactly what they want and do not experiment too much with flavour or colour.521 187.065 Middle-Aged Adults: (30-59 years old) 134.801 99.267 398.211 Children: (2-9 years old) 114.585 202.164 202.168 169.585 2010 184.839 249.295 277.432 Teenagers: (13-19 years) 80.074 Studying Age: (18-22 years old) 230.164 103.495 115.781 103.3 INDUSTRY SEGMENTATION The taste preferences and eating habits of consumers bear a high correlation with their age.642 319.986 Baby Boomers: (40-59 years old) 57.583 153.126 336.349 117.179 294.940 Children: (2-9 years old) 89.376 114.645 142.812 85.999 181.646 174.029 65.212 151.560 109.754 86. Based on this.103 358.3. Children rule Indian families consider children to precious gifts of God.103 Young Adults: (15-29 years old) Middle-Aged Adults: (30-59 years old) Baby Boomers: (40-59 years old) Pensioners: (aged 60+) Agewise Breakup of Population. As consumers. and parents in all income groups do all they can for their offspring.728 110. Indian parents are still not completely comfortable with paid .583 Tweenagers: (10-14 years old) Teenagers: (13-19 years) Studying Age: (18-22 years old) 153.405 232.226 162.918 92.781 100.211 114.655 261. we can segment the market into the following age groups: 1990 1995 2000 2005 189.149 270. Euromonitor database Age wise break up of the population (2005) 86.179 294. With “pester power” children play a significant role in decision making and purchase choices of just about anything ranging from food items to beverages to chocolates.457 117.576 Young Adults: (15-29 years old) 243.343 316.293 127.

parents are generally quite happy to see their boys spending so much time on cricket.478 184. 12% on chocolates and 10% each on soft drinks and fast food according to a newspaper report in the “The Times of India”. parents of nursery age children are looking to send them in the best private school they can afford. Urban children in this age group would have some amount of pocket money with an upper limit of Rs100 per month. they are a trendy new group that is extremely savvy and self assured when it comes to taking decisions regarding consumer goods and wants.624 91. instant noodles and breakfast cereal.63 2005 97.37 2010 95.046 169. tweenagers are an important influence on family decision-making in urban India.376 14. parental control still exists over this market segment. the TV remote. . these tweenagers are more familiar with operating mobile phones.82 2015 94. Though they are not sure about their choices on an emotional plane.055 90. DVD player and computer programmes. Rush for pre-school admissions Throughout urban India. the top six expense items for tweenagers seem to be impulse foods: 17% of the total pocket money spent on ice creams. This interest cuts across income and socio-economic groups. '000 Male Female TOTAL as % of total population 1990 87.897 89. Cricket-crazy boys Cricket is the obsession and passion of boy tweenagers in India.999 20. Pre-schools for toddlers in the 2-3 age group are mushrooming all over the country. With a penchant for hi-tech and an ease with new technology far superior to their parents. With their education demanding less time at this age. middle-income children can be seen playing in gardens and at school. They have also mastered the art of nagging their parents into making purchases of gadgets or products that they want. Low income boys will play on the streets with makeshift bats and stumps. as anxious parents recognise the perceived benefits these can bring.588 189.940 18.416 184. Impulse foods rule the preference scale as far as the buying behaviour of tweenagers in India is concerned.724 181.88 Children (2-9 years old) 1990-2015 Source:Euromonitor International from national statistics and UN 2) TWEENAGERS The tweenagers age group consists of children on the threshold of adolescence and as a segment are a difficult lot.457 15.041 89.885 187. Among the areas where they make their influence felt are the purchase of such items as a newly launched chocolate bar. Though allowances have gone up.29 1995 93.953 82.67 2000 97.baby sitters or day care help and use the larger extended family or friends to help with care and supervision of children. A key role to play in decision making With increased awareness through television and advertising. while boys from more well-to-do families go and play in organised coaching camps.797 87. as well as the product features. In fact.521 19.211 17.

which are a relatively new focal point for socialising.71 1995 52.672 52.254 114. There is nothing subtle about the age group any more. they are becoming increasingly vulnerable to media blitzkrieg. Of those sampled. middle-income households teenagers are now given a prepaid SIM card with a certain value for the month.098 89.04 2015 58. ring tone downloads and cricket score updates.565 117.329 55. Even television channels are zeroing in on this segment in recognition of this fact. They have experimental with their food with a preference towards innovative offerings but form strong opinions which they carry forward in life.781 10. as well as watching films and socialising with friends. in addition to allowances for travel and entertainment.84 2005 59. '000 Male Female TOTAL as % of total population 1990 46. 52% of children showed a risk of developing chemical dependence. Older college-going teenagers high school pupils tend to frequent coffee bars. teenagers like to emphasize and express themselves in a manner that catches attention. Urban teenagers are far more socially active today and find some difficulty in balancing their school routines with their personal schedules.137 10.90 2000 56.266 114. In many urban. . They like to hear it straight and then make their independent choices and judgements.22 Tweenagers (10-14 years old) Source: Euromonitor International from national statistics and UN 3) TEENAGERS On the brink of adulthood. They have a lot of say about the food that they want to consume with limited parental control. with the problem probably attributable to a scarcity of playgrounds and too much TV viewing. Most still depend on their parents for pocket money but are heavy users of these services.630 109.52 2010 60.960 55.560 10. music and expensive branded footwear. Teenagers are also among the regular users cinema multiplexes and entertainment zones.583 10.682 43. They are also predisposed towards snack items as they tend to feel hungry between traditional meals. On the flip side.571 56.320 100.226 9.302 10.240 48. Hard pressed for time Teenagers like buying books. This age group is extremely conscious of their facial and physical looks. They are expected to fuel demand for skin care products as well as health and nutrition-related goods.000 children sampled by Lifetime Wellness Rx Ltd in the cities of Allahabad in the north and Hyderabad in the south. Mobile phones This is the mobile phone generation in India. They are completely at ease with new technology and are heavy users of value-added services like SMS.Lifestyle concerns in urban India A 2005 study of 10-16 year olds in urban India revealed a sedentary lifestyle among 72% of the 20.

440 120. Youngsters are part of a middle-class boom in India. or undertake activities such as a trek in the mountains.47 2010 57.179 9. They have longer waking hours and due to this the traditional three meals does not suffice with the need for filling snacks.642 9.501 80.074 9.246 77.432 14.12 2005 79.017 153.932 40.728 13. Summer jobs Until the 1990s.489 115.402 53. This is no longer the case.033 78. Of the US$30 billion spent by Indians on themselves in 2003.651 49. river rafting or rock climbing.29 Studying age (18-22 years old) Source: Euromonitor International from national statistics and UN 5) YOUNG ADULTS Young adults (15-29 years old) represent the largest spending segment in the country.986 85. Rising financial freedom With growing aspirations on the academic front and shrinking global boundaries this age group has an unquenchable thirst for information whether through their PCs or cell phones.638 55. teenagers either find a summer job.78 2015 84. This age group has taken up to snacking as a way of life as they keep missing regular meals due to erratic schedules.64 1995 44. young adults spent close to US$10.027 68. summer vacations were a time to relax.5 billion with their spending levels .212 127. '000 Male Female TOTAL as % of total population 1990 42.918 9. With a rise in employment opportunities in the Business Process Outsourcing (BPO) sector.495 13.812 9. more and more consumers in this age group are juggling jobs along with their studies for the sake of the financial freedom it gives them.947 44.49 2015 59. Summer jobs may cover a range of activities from delivering newspapers to working in a restaurant.293 14.31 2000 47.83 2000 74. This population grew since 2000 but is set to stagnate in the forecast period with couples actually postponing the child bearing decision and some even rejecting the idea of having one at all.12 2010 83. read and catch up with friends.126 9.127 92.311 38.462 162.35 1995 66.'000 Male Female TOTAL as % of total population 1990 62.11 Teenagers (13-19 years old) Source: Euromonitor International from national statistics and UN 4) STUDYING AGE A rise in the number of colleges and institutions of higher learning both government owned and privately financed has enabled a larger number of youth to graduate from their portals. Now.645 13.528 103.433 61.853 57.482 160.240 110.13 2005 53.765 74.781 14.405 142.

The women in this segment play an important role as most of the choices of food items have to pass their scrutiny before it is consumed in the household. Responsibilities Between the ages of 45 and 55. This age group still does not have responsibilities of running a household. mobile phone companies.267 27. Others find themselves redundant in the new hire and fire labour environment. Young adults grew 8% in numbers over the 1999-2004 period and is likely to grow at approximately the same pace.790 153. Many have access to disposable incomes of Rs8.305 118.rising 12% each year at twice the pace of the economy’s growth according to various trade press publications.077 294.923 230. Most purchases made by this age group are on impulse. .236 161.00 2010 165. There are 16 million urban consumers in the 20-25 age group. Thus.55 1995 130.026 141. call centres and data processing firms. Need for convenience Many single working professionals have to live away from their parents due to the demand of the jobs.477 319.000 per month thanks to the BPO boom in India. They are ready to pay a premium for quality and convenience.576 26.839 27.13 Young adults (15-29 years old) Source: Euromonitor International from national statistics and UN 6) MIDDLE-AGED ADULTS These middle aged men have strict preferences over food and they generally stick to their choices. this income is almost entirely spent on non-essential items. This yuppies (young upwardly mobile professionals) class has a hard time preparing food and for them convenience is major issue.149 27. There is a trend for such people to enter the BPO sector as well.00 2000 141. marriage or worry about their children’s education.38 2015 174.916 109.83 2005 153.103 27. '000 Male Female TOTAL as % of total population 1990 120.000-10.223 129. These factors make them reluctant to leave or move from their city of residence and they would rather resign and move to another job rather than displace the family. fast food restaurants. Also always being on the move they have a need for food item that can be easily consumed and disposed of.193 27. Some may also have wives with settled careers. men find themselves with children who are able to leave school or facing crucial board examinations. The women in this age group are ones who the primarily buy food items for the entire household though their choices are shaped by the preferences of the household members.957 336.843 249. They experiment less and go for products that will enhance their social status.353 270. Rising disposable incomes College graduates and students still studying are landing well-paying jobs in a host of emerging industries that barely existed at the start of the new millennium – retail chains.

202 134.079 243.338 212. children’s education.43 2000 89. government jobs were among the few acceptable job occupations for people from respectable households.295 29.010 66.986 17. Some of .720 98.300 316. Pensioners have been the hardest hit section of the population.801 19.142 126.349 21.317 440.920 191. this segment is somewhat cautious about its approach to consumerist tendencies although it is adopting some of them.35 2005 104.486 398.278 74.105 174.882 85. retirement planning. a number use mobile phones for their functional use but frown on the use of credit cards and buying branded clothing. among the middle class. Health-related products.06 2000 163.56 Middle-aged adults (30-59 years old) Source: Euromonitor International from national statistics and UN 7) BABY BOOMERS The concept of baby boomers may not be that relevant to India notwithstanding the impact of and its participation in World War II. having been born in an age of constrained resources.490 112.646 16. Tired of their current salaried jobs. some out of choice and others out of necessity. they have had to play a more active role in financial management.09 Baby boomers (40-59 years old) Source: Euromonitor International from national statistics and UN 8) PENSIONERS In the 1950s and 1960s.96 2015 135. '000 Male Female TOTAL as % of total population 1990 68.764 152.34 2005 186. insurance products and vacations form the bulk of their expense. With declining interest rates.065 31.03 1995 143.16 2015 228. However.120 277.343 30. Changing technology and globalisation have changed that with unconventional income opportunities now presenting themselves to Indians.02 1995 77.89 2010 206.62 2010 120. some are taking the entrepreneurial plunge. This generation has virtually seen it all right from Indian Independence (1947) to the Indo-Pakistan war (1965).368 151.655 35. automobiles.310 232.405 34.754 18.212 16. For example. '000 Male Female TOTAL as % of total population 1990 125.Mid-life career change In urban India. Some pensioners have sought and enjoyed success in information technology-related endeavours whilst others have put their considerable English language skills to good use in service industries. there are a significant number of men who are making career switches.207 261.217 118.055 172.034 202.164 32.109 358. setting up businesses such as small ITservice firms.223 134. adventure tourism companies or leadership training consultancies.

81 1995 31. in search of better opportunities.476 86.944 57. These segments perceive Maggi instant noodles as a welcome change in taste from the regular Indian fare and they are fascinated by the curly shaped noodles.168 9. however.286 52.905 33. and couples in their 60s are going there of their own volition.029 6. there has been a steady migration of young adults and students to the US. and were in a sense for the destitute elderly.95 2010 47.55 2015 55.45 Pensioners (aged 60+) Source: Euromonitor International from national statistics and UN 3.643 7. There food preferences are shaped by their health conditions and they stick to their preferred food items.4 TARGET SEGMENTS FOR MAGGI NOODLES 3.737 65. In the new urban India.292 39. The age group between 4 and 14 years has largely similar tastes and is traditionally targeted by Maggi.e. or a family practice. children themselves ending up as the market leader of the instant noodles segment. While the numbers are not yet significant. '000 Male Female TOTAL as % of total population 1990 28. If the elderly went there.085 28. Retirement communities viewed as an option Retirement homes were previously viewed negatively in India. Therefore.51 2005 41. Realizing this early.109 45. . their ageing parents have had to learn to continue to live independently.1 MAGGI 2 MINUTE NOODLES Maggi 2 Minute Instant Noodles is already associated with convenience and taste and is currently accepted as a valid filling snack between meals.11 2000 36. Independent living on the rise From the 1980s onwards. it meant they had no one to care for them.them are even trying to keep abreast of current happenings and learning how to use a computer or access the Internet.441 99. Maggi will continue to leverage its brand equity and target the following segments for this product. two-to-three generations will continue to live together. Most have chosen to settle and make their lives in that country.712 7.4. In families where there is a proprietary business. Maggi shifted focus from the lady of the house to the end consumer i. however. For these segments innovative products also have novelty value.420 75.928 61. Children and Tweenagers: This is a large segment and is Maggi’s stronghold.728 8.240 117. It is also now an option for the middle-income and salaried classes.585 7. well-appointed retirement communities are mushrooming. Early buy in of this segment will help Maggi to sell in other segments in future. a trend is likely to increase in line with growth in the numbers of India’s elderly. certain dominant preferences emerge.

Nissin’s Cup Noodles is a huge hit with the consumers liking the concept of noodles served in a cup and the extra convenience of not dealing with cleaning/needing plates and the lesser time required for preparation. . thus the product can not be greatly differentiated with on basis of taste. 3. The proposition of convenience of cooking as well as that of a tasty filling snack attracts this segment which due to erratic schedules keeps missing their regular meals. Maggi Cup O Noodles being a premium priced product.5. To prevent Top Ramen. Cup O Maggi is targeted towards a segment that values time and convenience as well as is getting increasingly health conscious.4. anytime. So Cup O Maggi with added nutrition and wholesome components will position itself as a healthy and convenient food option that can be had anywhere.2 CUP O MAGGI The main USP of Cup O Maggi is convenience without compromising on taste. This segment has a good top of the mind recall of Maggi as a brand as the current members of this group were the targets of Maggi in the 1980’s and they retain fond memories of Maggi. The following segment promises to be the best bet. On the other hand Maggi has to deal with the negative perception of Maggi has of being unhealthy in an increasingly health conscious market. 3.Studying Age: The studying age segment though not traditionally targeted specifically has been devouring Maggi 2 minute noodles. Anytime”. from eating into its market share some product innovation is required as otherwise Maggi may get stereotyped as an unexciting product.5 POSITIONING OF MAGGI 3. a major threat in the current scenario. ease of preparation and no need of separate plates Maggi Cup O Noodles promises to appeal to anyone in need of a quick. Both these problems can be tackled by positioning Maggi as a snack with nutritional value. Another 3. Top Ramen is following a cost differentiation technique. To deal with this Maggi has to position itself as a differentiated product.1 MAGGI 2 MINUTE NOODLES Maggi 2 Minute Noodles will continue with its current positioning of convenience and as a “fast to cook.5. the main competitor. The crux of positioning will be “Healthy Snack Anywhere. This segment is growing and has the potential of accepting Maggi as a mainstream food item as they see instant noodles as a natural part of Indian food culture. Young Adults: The growing class of affluent young adults does not mind paying higher prices for quality products. With reduced cooking time of ½ a minute. The market is very sensitive to taste and rejects any flavour it dislikes with Maggi having learnt it the hard way. the segment targeted should one which is ready to pay a premium for a quality convenient food. The recent launch of “Veg Atta Noodles” and “Dal Atta Noodles” with the promise of good nutritional value ventures in this area. convenient bite. a emotional bond which can be leveraged to win them over to Maggi Cup O Noodles.2 MAGGI CUP O NOODLES Maggi Cup O Noodles is Maggi’s answer to Nissin’s Cup Noodles. good to eat” snack as this seems to be working well. They are hard pressed for time and would pay a premium for convenience.

1. The noodles will be available in a Plastic cup and just require hot water to be added to prepare them. Dried Vegetables and Dried Chicken chunks to be made available inside the cup The new improved spicier Tastemaker also to be added to the cup The Market Research Survey importuned us to improve the taste and provide better health benefits. For which we plan to replace the existing Tastemaker with a Spicier Tastemaker to go with the traditional Spicy Indian taste.1 CONSUMER SOLUTION The instant noodles segment of Maggi is the market leader in its segment. the Masala flavour is the hot favourite by a huge margin followed by Maggi Vegetable Atta and Tomato flavour. . To cater to the demands of the growing health conscious people nutritious veggies and chicken chunks have also been added. The Maggi Dal Atta variant shows a poor response. 4. Another issue is with the multi brick packets.4.3 PACKAGING Major changes are required in the packaging of Maggi noodles as suggested by the Marketing Research Survey: Maggi noodles packets to be flimsy which require to be torn apart carefully so as to not spill the contents. 4. To challenge this threat we propose to launch a new product to directly compete in this segment with the name Cup.2 NEW PRODUCT: THE CUP-O-MAGGI Maggi is market leader in its segment but it still has no product to challenge the growing threat posed by Cup Noodles from Top Ramen.O – Maggi. MARKETING MIX 4. This is to capture the market which has a growing demand towards convenience foods. The cup noodle market is expanding rapidly and there is a huge scope for gaining further market share by entering this segment which is currently dominated by Top Ramen.1. 4. Available in 4 flavours. These extra pieces are already available with the Maggi range of soups and the same can be used in Cup-O-Maggi also thus dispenses the need for setting up of a new processing factory specially for the manufacturing of food pieces. its closest competitor. The existing Sambar taste doesn’t go too well with consumers even from the south Indian market. Once opened they cannot be stored as it is and the contents have to be transferred to another container. Features of Cup –O – Maggi To be made available in two flavours Masala and Chicken to cater to the overall market palate.1. For this purpose the improved Tastemaker has been added to Cup-O-Maggi.1 IMPROVING THE DAL ATTA VARIANT Maggi Dal Atta variant ranks really low on taste as suggested by the Marketing Research Survey.

As the segment is highly price sensitive. Pricing strategy for the launch of Cup-O-Maggi is based on the objective of achieving “Product Quality leadership”. Creation of a premium brand gives the company an opportunity to provide a differential pricing and service offering to the customer thereby creating a key differentiator.To counter the problem. Pack Size Current (gm) (Rs) 50 100 200 400 600 800 Chicken Curry Tomato Vegetable Atta Noodles 100 100 100 100 400 Vegetable Dal Atta Noodles 100 400 5 10 20 38 54 72 10 10 10 13 50 13 50 Price Revised (Rs) 5 10 20 36 54 72 10 10 10 13 50 13 50 Price MAGGI 2 Minute Noodles Masala Maggi 2 Minute Noodles Proposed Revised Prices for existing package sizes Reducing the price of the 400g pack of Maggi Masala is a very aggressive move to directly attack the competitor whose 400g variant is priced at Rs 34. we plan to Increase the thickness of the plastic sheets used in the Maggi Noodles packets to give more strength to the packet and allow easy & safe opening of the pack To provide a Zip-Seal facility along with the existing sealing to allow the packets to be stored easily 4.2 CONSUMER COST Pricing strategy for the existing variants of Maggi Noodles is based on the objective of ‘Maximising Market Share”. These variants are competitively priced. The effect of the downward revision in price can be offset by the increase in sales volume. any price change initiates an instant price check reaction from the competitor. . Its segment is less price-sensitive so it will be premium priced to target the higher end customers.

the strength of our already robust distribution network could be leveraged to introduce and sell our new product: ‘Cup-o-Maggi’ noodles. an intensive dealer-distributor network is desired. introduce vending machines for the same at schools. colleges as well as corporate houses. . Maggi has a well established distribution network. The pricing will be regularly revised according to the changing forces in the market environment. As of now.CUP-O-MAGGI Masala Chicken Pack Size (gm) 80 80 Price (Rs) 20 20 Cup O Maggi Proposed Pricing and Packaging Product pricing is based on offering high value to our customers compared to most price points in the market. 4.Parity method. as also the improved versions of the Dal Atta variant.3 CONVENIENCE To keep up with the growing trends in the Noodles sector. In addition for Cup O Maggi we propose that: Maggi Noodles have tie-ups with Corporate Houses Depending on the initial sales of Cup O Maggi. The target markets of ‘Cup-o-Maggi’ are primarily present in the metropolitan cities as well as the tier-II cities. Cup-O-Maggi has been priced at Rs 20 for an 80g pack of Masala and Chicken flavours to directly compete against the competitor cup noodles which are also priced at Rs 20 for an 80g pack. Thus using the Competitive.

Television Advertisements: Portraying hassled double income families. . as also the housewives. with which she portrays the brand that is Maggi. Anytime! “ SUGGESTED FUTURE CUP O MAGGI ADVERTISING CAMPAIGN World Cup 2007 (13th March 2007 to 28th April 2007) Families. couples. basically people who might prefer to go for a quick meal instead of cooking a whole traditional Indian meal. we propose to move away from the ‘Child and Mother’ approach of Maggi. finding relief at the end of a tiring day with a quickly conjured up bowl of Maggi 2 Minute noodles. The reason being Maggi has always been the kids snack. GENERAL PROMOTION Events and Experiences: Hold the Online Maggie Recipe Challenge. Celebrity endorsement: Maggi has associated itself with celebrities like Bollywood actress Priety Zinta recently. Communicate the new improved east-to-use packaging and the going spicy of Dal Atta Noodles. The same is brought out and highlighted in the charms of Preity and her bubbly and vivacious zing. An associated tagline with the Cup-o-Maggi advertisement campaign could be: ‘Cup-o-Maggi’: ‘Healthy Snack Anywhere. Get a cricketer to endorse Maggi noodles. Winning entries are compiled into an ecookbook which is published online. The Cup noodles would be targeted at the young single professionals. kids all enjoying their cricket with Cup O Maggi. drive-in screens.4 COMMUNICATION PROMOTION OF CUP O MAGGI With the introduction of Cup-o-Maggi noodles.4. wherein innovative recipes with Maggi Noodles as a base are invited. specially in case of early work-day mornings or a ‘tired’-evening quick snack (in case of professionals). Portray different flavours available and focus on the health aspect of the fortified 2 minute Noodles and the Dal and Vegetable Atta Noodles. at home.

2 Attributes on which Top ramen smoodles performs better then Maggi noodles Ingredients Packaging Taste Price 0 20 40 60 80 100 120 140 B ra nd No. of people ranking Top Ramen smoodles better then Maggi noodles .com/c/39191-OSMZz4/ The following sections deal with the results obtained on the basis of the 30 point questionnaire put forth in the survey.1 Maggi Noodles Performance on various attributes 1400 1200 1000 800 600 400 200 0 Im ag e Pr ic e Ta Pa ck ste ag in H g e A va alt ila h In gr bili ed ty ie n Va ts rie ty 4.4.createsurvey.5 MARKETING RESEARCH An online survey was undertaken at http://www.5. 4.5.

5.3 Attributes on which Top ramen cup noodles performs better then Maggi noodles Ingredients Convenience in cooking Packaging Taste 0 20 40 60 80 100 120 4.3 0.5 .2 0.4 Maggi Packaging size preference 800 gms 600 gms 400 gms 200 gms 100 gms 50 gms 0 0.1 0.4 0.4.5.

5 How do you like to consume your Maggi ? 11.5.85% Your secret recipe .02% 6.82% 43.31% Plain maggi With vegetables With chicken 38.4.

10.000/. Keeping in mind the financial viability.5. FINANCIALS 5.1. with built-up area of 100 sq. Land and Building A plot of land of about 200 sq.g. If the plant operates at the efficiency higher than that indicated by the Break-Even point than the plant operates at a profit and vice-versa. This is done by finding the Break-Even point of operation.whereas cost of construction could be Rs.000 B.1 BREAK-EVEN ANALYSIS The cost involved in the production can be divided into two categories viz.) 200 100 TOTAL Cost (Rs.1 BREAKEVEN ANALYSIS OF A 100 TONNE CAPACITY PLANT OF CUP O MAGGI NOODLES In this analysis we will look for the different costs involved in the production of Maggi cup noodles and then comparing it with the total sales to find out the minimum efficiency at which the plant should operate in order to have a neither loss nor profit relationship.mtrs. Particulars Land Building Area (sq. plant & Machinery cost etc.50.2. is sufficient. Land would cost around Rs. Land &Building cost.g. mtrs.000 3. the rated production capacity is assumed to be 100 tonnes per year with 300 working days and 2 shifts per day. fixed cost and variable cost.mtrs. packaging cost etc. whereas packing room and storage area would occupy balance area. Fixed Cost A. .50 lacs.60.mtrs. 5.000 2.) 60. Variable Cost: this is the cost that varies with per unit of product produced e. Raw material cost. Main production area would occupy around 50 sq. They can be defined as Fixed cost: This is the cost which is independent of the quantity of the product produced e. The break up of the various costs is shown below 1. Plant and Machinery Marketing is the key success determinant and the production capacity has to be finalized accordingly.

edible oil.000 80. SS utensils.000 2. Packing materials are equally important.000 1.000 3.000 4.000/-. working tables. All of them are easily available.000 6.000/-.00.00.000 Total 8. Utilities Power requirement shall be 20 HP whereas per day water requirement would be 500-550 liters.000 2. Monthly Salary (Rs) Total Monthly Salary (Rs) Machine Operators Skilled Workers for Packing Semi-skilled Workers Helpers Salesman 2 2 2 2 2 4.90. 50. etc. Miscellaneous Assets Other assets like furniture and fixtures. 2.000 1.MANPOWER REQUIREMENTS Particulars Nos. preservatives etc. salt.000 4. 1. Colourful and attractive pouches shall have to be printed and outer packing will be corrugated boxes.10. storage facilities.000 B. protein isolates. spices. Annual expenditure at full capacity utilization will be Rs.000 24.000 10.00. Other materials required are corn and rice flour. would call for expenditure of Rs. Raw and Packing Materials Noodles are made with the help of many ingredients with major input being wheat flour.000 3. Variable costs A. . Price (Rs) Extrusion Machine Pre-conditioner Mixer ( 50 kgs capacity) Pouch Packing and Sealing Machine Weighing Scale 1 1 1 1 1 TOTAL 1.000 2.This would necessitate installation of following machines: Item Qty. D.000 1.000 C.

20 i. 180/kg So for no profit no loss equation is 860000+ (1.000 20.000 @ 30% of Total sales Plant and Machinery Miscellaneous Assets Utilities TOTAL FIXED COST VARIABLE COSTS Manpower Requirements Raw and Packing Materials Selling Expenses 5. free Sampling etc.1.20.) Value Raw Material Packing Material 100 100 70. This expense can be reduced once the product is well established in market.000 50. A provision of 30% of sales value is made every year to take care of these Expenses since the product is new thus more emphasis is given on this section.00.000 @ Rs.60.000 Per tonne of production 24. Selling Expenses Marketing will be a key element.2 ANALYTICAL BREAK-EVEN ANALYSIS Let total production be X tones. Rs.000 1.This cost can be shown as Product Qty.10. selling commission. hoardings and TV scroll.00. 3.000*X) + (30/100)*X*1000*180= (180*X*1000) 860000 = (180000-114000-54000)*X X = 71.000 90.90.000/ Ton of Finished Goods Total 70. Expenses shall have to be incurred on transportation.250/kg so lets say that Maggi Noodle is supplied to the market agent at Rs. (Tonnes) Price/Ton (Rs.000 8.000 90.e.00.14.000 C.10.000 3. Publicity in local media like newspapers. Since the 80 gm pack of Maggi is available for Rs. FINAL TOTAL COST ANALYSIS FIXED COSTS Land and Building In Rs.66 tonnes .

1 million The desired market share by value = 80% Therefore.11 = Rs.88 million Therefore.88 million. . The graph is shown below.2 SALES FORECAST 5.1 MAGGI INSTANT NOODLES Sales by value For the year 2007 Projected value of instant noodles category (Refer Appendix B)= Rs. not to suffer any loss.3 GRAPHICAL BREAK-EVEN ANALYSIS The result obtained above can be verified by plotting a graph between the total cost and Quantity of Maggi produced. 6888.66% in order to reach break-even analysis point i.e.8611. Therefore.Final conclusion: The plant must operate at the minimum efficiency of 71. 20 Rupees (in millions) 15 10 5 0 0 -5 20 40 Break Even Analysis Variable Cost Revenue Cash Balance 60 80 100 120 Sales (in tonnes) 5. Projected volume sales = (Projected Value of Sales / Price per thousand Tonnes) = 76. 6888. 8.9 thousand Tonnes. For year 2007 projected category sales = 96.9 Price for one thousand Tonnes of Maggi = 9 * 10^7 rupees Projected value of sales = Rs. volume market share of 78. 5. Sales by volume Average retail price per 100 gms of Maggi (across all SKUs) = Rs.5 thousand Tonnes. projected value the sales need to be 80% * Rs.611.2.95 % for the year 2007 is projected.1.

62 million. volume market share of 19.143.2. projected value the sales need to be 20% * Rs. For year 2007 projected category sales = 0.115 thousand Tonnes.5.6 thousand Tonnes.17 % for the year 2007 is projected.1 = Rs. 28. Sales by volume Suggested retail price per 80 gms of Cup O Maggi = Rs. Projected volume sales = (Projected Value of Sales / Price per thousand Tonnes) = 0. .2 PROPOSED : CUP O MAGGI NOODLES Sales by value For the year 2007 Projected value of cup noodles category (Refer Appendix B) = Rs. 143. 28.1 million The suggested target market share by value = 20% Therefore.20 Price for one thousand Tonnes of Cup O Maggi = 20 /80* 10^9 rupees Projected value of sales = Rs. Therefore.88 million Therefore.

APPENDIX A: INDIAN INSTANT NOODLES MARKET GROWTH GRAPHS Indian Instant Noodles Market Retail volume growth trends Indian Instant Noodles Market Retail value growth trends .

4 2010 12. Business Standard.1 Trade press (The Economic Times. Mid-day. agencyfaqs.com.300. The Hindu Business Line.6 2007 84. Company research.667.6 143.8 237.0 2008 96. Trade interviews.3 84.077.6 Forecast Retail Sales of Noodles by Subsector: Volume 2005-2010 '000 tonnes Instant noodles Cups/bowl instant noodles Source: 2005 59.1 2008 9.6 0.8 0.com).8 112.5 2006 7. Euromonitor International estimates . rediff.3 2003 78.9 2009 110.APPENDIX B: NESTLE MAGGI NOODLES FORECAST RETAIL SALES Nestlé India Ltd Shares of Packaged Food by Subsector 2001-2004 % retail value rsp Instant noodles 2001 79.9 1.5 Forecast Retail Sales of Noodles by Subsector: Value 2005-2010 Rs million Instant noodles Cups/bowl instant noodles 2005 6.3 0.2 206.5 0.9 2006 71.1 0.3 2002 77.1 175.6 2007 8.611.1 2004 78.319. Financial Express.959.2 2009 11.1 2010 123. India Infoline.

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