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A project report on consumer buying behaviour towards

Submitted to Prof M.D.Kakade

Submitted By Md Javed Khan(25) Neeshu Agarwal (27)

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BHARTI VIDYAPEETH DEEMED UNIVERSITY, PUNE

INSTITUTE OF MANAGEMENT AND ENTREPRENUERSHIP DEVELOPMENT, PAUD ROAD, ERANDWANE PUNE-38 CERTIFICATE OF COMPLETION

This is to certify that Md Javed Khan and Neeshu Agarwal are a bonafide student of MBA (BA) program of the university in this institute for the year 2010-2012. As a part of the , the student has completed the project report titled, A STUDY CONSUMER BUYING BEHAVIOUR TOWARDS NOODLES The project report is prepared by the student under the guidance of Prof. M.D.KAKADE (Teacher Guide) Date: Place: Pune

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DECLARATION

I, MD JAVED KHAN AND NEESHU AGARWAL undersigned hereby declare that the project report entitled: A STUDY CONSUMER BUYING BEHAVIOUR TOWARDS NOODLES.

Written and submitted by us is submitted to Prof.M.D.KAKADE is our original work. The empirical findings in this report are based on the data collected by myself. While preparing the report I have not copied from any report.

MD JAVED KHAN (25) NEESHU AGARWAL (27)

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PREFACE
Marketing has to go beyond the various influences on buyers and develops an understanding of how consumers actually make their buying decisions. We are exposed to marketing in almost everything we do; we see marketing in the advertisement that fills our newspapers. But marketing is not that simple as it appears to be. The mission of present day marketing is not 'telling and selling', but, satisfying customer 'needs' and 'Customer delight'. Customer is the fulcrum around which all marketing activities revolve. To start any business the success entirely depends on the marketing research done about the particular and the consumer attitude towards the product. Marketing research plays a vital role in a business to make it success. In this era where time is very big factor for everyone. Every person wants to save his every second to utilize it to achieve more and more goals, and with less time, people want the better facilities and in short time. When the traveling is the factor, people choose that how best, they can travel, what facilities they can get and how much time and money they can save. In the marketing point of view, the behavior of the consumers effects deeply on the concerned organization. So that why, I am here to analyzing and study the consumer behavior towards the Maggi noodles and Horlicks foodles.

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INDEX
SERIAL NO NAME PAGE NO

1 2
3

Executive summery

7 Introduction 33 Strategic analysis of Maggi and Horlicks foodles (Company Profile) 63 RESEARCH METHODOLOGY 65 Survey Results

4 5

6 7

SUGGESTIONS AND CONCLUSION

73

Bibliography

77

Annexure

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EXECUTIVE SUMMERY
The report entitled A study of consumer buying behaviour towards Maggi and Foodles deals with the study of Maggi brand and Horliks foodles that was launched in India in the year 1983, by Nestle India Limited, and foodles in the year of 2009 which became synonymous with noodles. This research paper tries to find consumer buying behaviour towards these products. This research paper also finds of reach of foodles and Maggi .Describes the level of involvement and types of consumer problem solving process. This research will also explain how situational influences may affect the consumer buying decision process. Understand the psychological influences that may affect the consumer buying decision process.

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INTRODUCTION
CONSUMER BUYING BEHAVIOUR : All marketing starts with the consumer. So consumer is a very important person to a marketer. Consumer decides what to purchase, for whom to purchase, why to purchase, from where to purchase, and how much to purchase. In order to become a successful marketer, he must know the liking or disliking of the customers. He must also know the time and the quantity of goods and services, a consumer may purchase, so that he may store the goods or provide the services according to the likings of the consumers. Gone are the days when the concept of market was let the buyers beware or when the market was mainly the sellers market. Now the whole concept of consumers sovereignty prevails. The manufacturers produce and the sellers sell whatever the consumer likes. In this sense, consumer is the supreme in the market. As consumers, we play a very vital role in the health of the economy local, national or international. The decision we make concerning our consumption behaviour affect the demand for the basic raw materials, for the transportation, for the banking, for the production; they effect the employment of workers and deployment of resources and success of some industries and failures of others. Thus marketer must understand this. The consumer behaviour suggest how individual, groups and organization select, buy, use and dispose of goods, services, ideas or experience to satisfy their needs and wants. It also clues for improving or introducing products or services, setting price, devising channels etc. Since liberalization 100% FDI is allowed in India. This has attracted foreign companies to penetrate the Indian market. The marketers always look for emergent trends that suggest new. As a consumer we are all unique and this uniqueness is reflected in the consumption pattern and process purchase. The study of consumer behaviour provides us with reasons why consumers differ from one another in buying using products and services. We receive stimuli from the environment and the specifics of the marketing strategies of different products and services, and responds to these stimuli in terms
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of either buying or not buying product. In between the stage of receiving the stimuli and responding to it, the consumer goes through the process of making his decision. CONSUMER BEHAVIOUR Consumer behaviour is the study of how people buy, what they buy, when they buy and why they buy. It is a subcategory of marketing that blends elements from psychology, sociology, socio psychology, anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics, psychographics, and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general. Consumption is the process of production, acquisition, utilization and destruction of goods, services, experiences or places Understanding Demographics 1) Youth 60% of Indias teens stay in rural area. 2) Women Only 23 % house wives in urban areas have jobs outside their homes

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STAGES OF CONSUMER BUYNG PROCESS

Six Stages to the Consumer Buying Decision Process (For complex decisions). Actual purchasing is only one stage of the process. Not all decision processes lead to a purchase. All consumer decisions do not always include all 6 stages, determined by the degree of complexity...discussed next. The 6 stages are: 1. Problem Recognition: The buying process starts with need or problem recognitionthe buyer recognizes a problem or need. The buyer senses a difference
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between his or her actual state and some desired state. The need can be triggered by internal stimuli when one of the person's normal needshunger, thirst, sexrises to a level high enough to become a drive. A need can also be triggered by external stimuli. Hunger--Food. Hunger stimulates your need to eat. Can be stimulated by the marketer through product information--did not know you were deficient? I.E., see a commercial for a new pair of shoes, stimulates your recognition that you need a new pair of shoes At this stage, the marketer should research consumers to find out what kinds of needs or problems arise, what brought them about, and how they led the consumer to this particular product.
2. Information search an aroused consumer may or may not search for more

information. If the consumer's drive is strong and a satisfying product is near at hand, the consumer is likely to buy it then. If not, the consumer may store the need in memory or undertake an information search related to the need. At one level, the consumer may simply enter heightened attention. The consumer can obtain information from any of several sources. These include personal sources (family, friends, neighbors, acquaintances), commercial sources (advertising, salespeople, dealers, packaging, displays, Web sites), public sources (mass media, consumer-rating organizations), and experiential sources (handling, examining, using the product). The relative influence of these information sources varies with the product and the buyer. Generally, the consumer receives the most information about a product from commercial sourcesthose controlled by the marketer. The most effective sources, however, tend to be personal. Commercial sources normally inform the buyer, but personal sources legitimize or evaluate products for the buyer. People often ask othersfriends, relatives, acquaintances, professionalsfor recommendations concerning a product or service. Thus, companies have a strong interest in building such word-of-mouth sources. These sources have two chief advantages. First, they are convincing: Word of mouth is the only promotion method
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that is of consumers, by consumers, and for consumers. Having loyal, satisfied customers that brag about doing business with you is the dream of every business owner. Not only are satisfied customers repeating buyers, but they are also walking, talking billboards for your business. Second, the costs are low. Keeping in touch with satisfied customers and turning them into word-of-mouth advocates costs the business relatively little. A successful information search leaves a buyer with possible alternatives, the evoked set. Hungry, want to go out and eat, evoked set is Chinese food Indian food Burger king

3. Evaluation of Alternatives--need to establish criteria for evaluation, features the buyer wants or does not want. Rank/weight alternatives or resume search. May decide that you want to eat something spicy, Indian gets highest rank etc. If not satisfied with your choices then return to the search phase. Can you think of another restaurant? Look in the yellow pages etc. Information from different sources may be treated differently. Marketers try to influence by "framing" alternatives. 4. Purchase decisionIn the evaluation stage, the consumer ranks brands and forms purchase intentions. Generally, the consumer's purchase decision will be to buy the most preferred brand, but two factors can come between the purchase intention and the purchase decision. The first factor is the attitudes of others The second factor is unexpected situational factors. The consumer may form a purchase intention based on factors such as expected income, expected price, and expected product benefits. However, unexpected events may change the purchase intention. 5. Purchase--May differ from decision, time lapse between 4 & product availability

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6. Post-Purchase Evaluation--outcome: The marketer's job does not end when the product is bought. After purchasing the product, the consumer will be satisfied or dissatisfied and will engage in post purchase behavior of interest to the marketer. What determines whether the buyer is satisfied or dissatisfied with a purchase? The answer lies in the relationship between the consumer's expectations and the product's perceived performance. If the product falls short of expectations, the consumer is disappointed; if it meets expectations, the consumer is satisfied; if it exceeds expectations, the consumer is delighted. The larger the gap between expectations and performance, the greater the consumer's dissatisfaction. This suggests that sellers should make product claims that faithfully represent the product's performance so that buyers are satisfied. Some sellers might even understate performance levels to boost consumer satisfaction with the product. Almost all major purchases result in cognitive dissonance, or discomfort caused by post purchase conflict. After the purchase, consumers are satisfied with the benefits of the chosen brand and are glad to avoid the drawbacks of the brands not bought. However, every purchase involves compromise. Consumers feel uneasy about acquiring the drawbacks of the chosen brand and about losing the benefits of the brands not purchased. Thus, consumers feel at least some postpurchase dissonance for every purchase. Why is it so important to satisfy the customer? Such satisfaction is important because a company's sales come from two basic groupsnew customers and retained customers. It usually costs more to attract new customers than to retain current ones, and the best way to retain current customers is to keep them satisfied. Customer satisfaction is a key to making lasting connections with consumersto keeping and growing consumers and reaping their customer lifetime value. Satisfied customers buy a product again, talk favorably to others about the product, pay less attention to competing brands and advertising, and buy other products from the company. Many marketers go beyond merely meeting the expectations of customersthey aim to delight the customer. A delighted customer is even more likely to purchase again and to talk favorably about the product and company. A dissatisfied consumer responds differently. Whereas, on average, a satisfied customer tells 3 people about a good product experience, a dissatisfied customer
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gripes to 11 people. In fact, one study showed that 13 percent of the people who had a problem with an organization complained about the company to more than 20 people. Clearly, bad word of mouth travels farther and faster than good word of mouth and can quickly damage consumer attitudes about a company and its products. Therefore, a company would be wise to measure customer satisfaction regularly. It cannot simply rely on dissatisfied customers to volunteer their complaints when they are dissatisfied. Some 96 percent of unhappy customers never tell the company about their problem. Companies should set up systems that encourage customers to complain. In this way, the company can learn how well it is doing and how it can improve TYPES OF COMSUMER BUYING BEHAVIOUR : Types of consumer buying behaviour are determined by: Level of Involvement in purchase decision. Importance and intensity of interest in a product in a particular situation. Buyers level of involvement determines why he/she is motivated to seek information about a certain products and brands but virtually ignores others. High involvement purchases--Honda Motorbike, high priced goods, products visible to others, and the higher the risk the higher the involvement. Types of risk: Personal risk Social risk Economic risk The four type of consumer buying behaviour are:

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Routine Response/Programmed Behaviour--Buying low involvement frequently purchased low cost items; need very little search and decision effort; purchased almost automatically. Examples include soft drinks, snack foods, milk etc. COMPLEX BUYING BEHAVIOUR: Consumers undertake complex buying behavior when they are highly involved in a purchase and perceive significant differences among brands. Consumers may be highly involved when the product is expensive, risky, purchased infrequently, and highly self-expressive. Typically, the consumer has much to learn about the product category. For example, a personal computer buyer may not know what attributes to consider. Many product features carry no real meaning: a "Pentium Pro chip," "super VGA resolution," or "megs of RAM." This buyer will pass through a learning process, first developing beliefs about the product, then attitudes, and then making a thoughtful purchase choice. Marketers of high-involvement products must understand the information-gathering and evaluation behavior of high-involvement consumers. They need to help buyers learn about product-class attributes and their relative importance, and about what the company's brand offers on the important attributes. Marketers need to differentiate their brand's features, perhaps by describing the brand's benefits using print media with long copy. They must motivate store salespeople and the buyer's acquaintances to influence the final brand choice.

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DISSONANCE- REDUCING BUYING BEHAVIOUR: Dissonance-reducing buying behavior occurs when consumers are highly involved with an expensive, infrequent, or risky purchase, but see little difference among brands. For example, consumers buying carpeting may face a high-involvement decision because carpeting is expensive and self-expressive. Yet buyers may consider most carpet brands in a given price range to be the same. In this case, because perceived brand differences are not large, buyers may shop around to learn what is available, but buy relatively quickly. They may respond primarily to a good price or to purchase convenience. After the purchase, consumers might experience post purchase dissonance (aftersale discomfort) when they notice certain disadvantages of the purchased carpet brand or hear favorable things about brands not purchased. To counter such dissonance, the marketer's after-sale communications should provide evidence and support to help consumers feel good about their brand choices.

HABITUAL BUYING BEHAVIOUR: Habitual buying behavior occurs under conditions of low consumer involvement and little significant brand difference. For example, take salt. Consumers have little involvement in this product categorythey simply go to the store and reach for a brand. If they keep reaching for the same brand, it is out of habit rather than strong brand loyalty. Consumers appear to have low involvement with most low-cost, frequently purchased products. In such cases, consumer behavior does not pass through the usual belief-attitudebehavior sequence. Consumers do not search extensively for information about the brands, evaluate brand characteristics, and make weighty decisions about which brands to buy. Instead, they passively receive information as they watch television or read magazines. Ad repetition creates brand familiarity rather than brand conviction. Consumers do not form strong attitudes toward a brand; they select the brand because it is familiar. Because they are not highly involved with the product, consumers may not evaluate the choice even after purchase. Thus, the buying process

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involves brand beliefs formed by passive learning, followed by purchase behavior, which may or may not be followed by evaluation. Because buyers are not highly committed to any brands, marketers of lowinvolvement products with few brand differences often use price and sales promotions to stimulate product trial. In advertising for a low-involvement product, ad copy should stress only a few key points. Visual symbols and imagery are important because they can be remembered easily and associated with the brand. Ad campaigns should include high repetition of short-duration messages. Television is usually more effective than print media because it is a low-involvement medium suitable for passive learning. Advertising planning should be based on classical conditioning theory, in which buyers learn to identify a certain product by a symbol repeatedly attached to it. Marketers can try to convert low-involvement products into higher-involvement ones by linking them to some involving issue. Procter & Gamble does this when it links Crest toothpaste to avoiding cavities. Or the product can be linked to some involving personal situation. Nestl did this in its series of ads for Taster's Choice coffee, each consisting of a new soap-opera-like episode featuring the evolving romantic relationship between two neighbors. At best, these strategies can raise consumer involvement from a low to a moderate level. However, they are not likely to propel the consumer into highly involved buying behavior. VARIETY SEEKING BUYING BEHAVIOUR: Consumers undertake variety-seeking buying behavior in situations characterized by low consumer involvement but significant perceived brand differences. In such cases, consumers often do a lot of brand switching. For example, when buying cookies, a consumer may hold some beliefs, choose a cookie brand without much evaluation, then evaluate that brand during consumption. But the next time, the consumer might pick another brand out of boredom or simply to try something different. Brand switching occurs for the sake of variety rather than because of dissatisfaction. In such product categories, the marketing strategy may differ for the market leader and minor brands. The market leader will try to encourage habitual buying behavior by dominating shelf space, keeping shelves fully stocked, and running frequent reminder advertising. Challenger firms will encourage variety seeking by offering
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lower prices, special deals, coupons, free samples, and advertising that presents reasons for trying something new.

Factors Affecting the Consumer Buying Decision Process

A consumer, making a purchase decision will be affected by the following four factors: 1. Cultural and sub culture Factor 2. Social Factor 3. Personal Factor 4. Psychological
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1. Culture and Sub-culture Culture refers to the set of values, ideas, and attitudes that are accepted by a homogenous group of people and transmitted to the next generation. Culture also determines what is acceptable with product advertising. Culture determines what people wear, eat, reside and travel. Cultural values in the US are good health, education, individualism and freedom. In American culture time scarcity is a growing problem that is change in meals. Big impact on international marketing. Culture can be divided into subcultures: Geographic regions Human characteristics such as ethnic background. Culture affects what people buy, how they buy and when they buy. 2. Social Factors Consumer wants, learning, motives etc. are influenced by opinion leaders, person's family, reference groups, social class and culture. Roles and Family Influences-Role...things you should do based on the expectations of you from your position within a group. People have many roles. Husband, father, employer, employee. Individuals role are continuing to change therefore marketers must continue to update information. Family is the most basic group a person belongs to. Marketers must understand: that many family decisions are made by the family unit consumer behaviour starts in the family unit family roles and preferences are the model for children's future family (can reject/alter/etc) family buying decisions are a mixture of family interactions and individual decision making. Family acts an interpreter of social and cultural values for the individual. The Family life cycle: families go through stages; each stage creates different consumer demands Family members can strongly influence buyer behavior. The family is the most important consumer buying organization in society, and it has been researched extensively. Marketers are interested in the roles and influence of the husband, wife, and children on the purchase of different products and services.
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Husband-wife involvement varies widely by product category and by stage in the buying process. Buying roles change with evolving consumer lifestyles. In the United States, the wife traditionally has been the main purchasing agent for the family, especially in the areas of food, household products, and clothing. But with 70 percent of women holding jobs outside the home and the willingness of husbands to do more of the family's purchasing, all this is changing. For example, women now buy about 45 percent of all cars and men account for about 40 percent of food-shopping dollars. Such changes suggest that marketers who've typically sold their products to only women or only men are now courting the opposite sex. For example, with research revealing that women now account for nearly half of all hardware store purchases, home improvement retailers such as Home Depot and Builders Square have turned what once were intimidating warehouses into female-friendly retail outlets. The new Builders Square II outlets feature decorator design centers at the front of the store. To attract more women, Builders Square runs ads targeting women in Home, House Beautiful, Woman's Day, and Better Homes and Gardens. Home Depot even offers bridal registries Children may also have a strong influence on family buying decisions. Chevrolet recognizes these influences in marketing its Chevy Venture minivan. For example, it ran ads to woo these "back-seat consumers" in Sports Illustrated for Kids, which attracts mostly 8- to 14-year-old boys. "We're kidding ourselves when we think kids aren't aware of brands," says Venture's brand manager, adding that even she was surprised at how often parents told her that kids played a tie-breaking role in deciding which car to buy. Groups A person's behavior is influenced by many small groups. Groups that have a direct influence and to which a person belongs are called membership groups. In contrast, reference groups serve as direct (face-to-face) or indirect points of comparison or reference in forming a person's attitudes or behavior. People often are influenced by reference groups to which they do not belong. For example, an aspirational group is one to which the individual wishes to belong, as when a teenage basketball player hopes to play someday for the Utah Jazz. Marketers try to identify the reference groups of their target markets. Reference groups expose a person to new behaviors
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and lifestyles, influence the person's attitudes and self-concept, and create pressures to conform that may affect the person's product and brand choices. The importance of group influence varies across products and brands. It tends to be strongest when the product is visible to others whom the buyer respects. Manufacturers of products and brands subjected to strong group influence must figure out how to reach opinion leaderspeople within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert influence on others. Reference Groups-Individual identifies with the group to the extent that he takes on many of the values, attitudes or behaviours of the group members. Families, friends, sororities, civic and professional organizations. Any group that has a positive or negative influence on a persons attitude and behaviour. Membership groups (Belong to) Affinity marketing is focused on the desires of consumers that belong to reference groups. Marketers get the groups to approve the product and communicate that approval to its members. Credit Cards etc.!! Aspiration groups (Want to belong to) Disassociate groups (do not want to belong to) Honda tries to disassociate from the "biker" group. The degree to which a reference group will affect a purchase decision depends on an individuals susceptibility to reference group influence and the strength of his/her involvement with the group. Social Class An open group of individuals who have similar social rank. US is not a classless society. US criteria; occupation, education, income, wealth, race, ethnic groups and possessions. Social class influences many aspects of our lives. i.e.; upper middle class Americans prefer luxury cars Mercedes.
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Upper-upper class, .3%, inherited wealth, aristocratic names .Upper uppers are the social elite who live on inherited wealth and have well-known family backgrounds. They give large sums to charity, run debutante balls, own more than one home, and send their children to the finest schools. They are a market for jewelry, antiques, homes, and vacations. They often buy and dress conservatively rather than showing off their wealth. Although small in number, upper uppers serve as a reference group for others. Lower-upper class, 1.2%, newer social elite, from current professionals and corporate elite. Lower uppers have earned high income or wealth through exceptional ability in the professions or business. They usually begin in the middle class. They tend to be active in social and civic affairs and buy for themselves and their children the symbols of status, such as expensive homes, schools, swimming pools, and automobiles. They include the new rich who consume conspicuously to impress those below them. They want to be accepted in the upper-upper stratum, a status more likely to be achieved by their children than by themselves. Upper-middle class, 12.5%, college graduates, managers and professionals Upper middles possess neither family status nor unusual wealth. They are primarily concerned with "career," They have attained positions as professionals, independent businesspersons, and corporate managers. They believe in education and want their children to develop professional or administrative skills. They are joiners and highly civic-minded. They are the quality market for good homes, clothes, furniture, and appliances. Middle class, 32%, average pay white collar workers and blue collar friends. The middle class is made up of average-pay white- and blue-collar workers who live on "the better side of town" and try to "do the proper things." To keep up with the trends, they often buy products that are popular. Most are concerned with fashion, seeking the better brand names. Better living means owning a nice home in a nice neighborhood with good schools. They believe in spending more money on

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worthwhile experiences for their children and aiming them toward a college education. Working class, 38%, average pay blue collar workers. The working class consists of those who lead a "working-class lifestyle," whatever their income, school background, or job. They depend heavily on relatives for economic and emotional support, for advice on purchases, and for assistance in times of trouble. The working class maintains sharper sex role division and stereotyping. Lower class, 9%, working, not on welfare Upper lowers are working (are not on welfare), although their living standard is just above poverty. They perform unskilled work for very poor pay although they strive toward a higher class. Often, upper lowers lack education. Although they fall near the poverty line financially, they manage to "present a picture of self-discipline" and "maintain some effort at cleanliness." Lower-lower class, 7%, on welfare Lower lowers are on welfare, visibly poverty stricken, and usually out of work or have "the dirtiest jobs." Often they are not interested in finding a job and are permanently dependent on public aid or charity for income. Their homes, clothes, and possessions are "dirty," "raggedy," and "broken-down." Social class determines to some extent, the types, quality, and quantity of products that a person buys or uses. Lower class people tend to stay close to home when shopping; do not engage in much pre-purchase information gathering. Stores project definite class images. Family, reference groups and social classes are all social influences on consumer behaviour. All operate within a larger culture.

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Celebrity Influence This is an important tool which is able to influence Indian consumer buying behaviour. In India, celebrities are being increasingly used in marketing communication by marketers to lend personality to their products. With the visual media becoming more popular the use of celebrities in the TV media has increased. Celebrities create headlines. Their activities and movements are being closely watched and imitated. What they endorse sell like hot cakes. It is not surprising therefore that using celebrities in advertisements has become common practice. In India especially, it is not difficult to look for the reasons as to why companies are increasingly using celebrities. Indians always love their heroes and heroines. Consumers like advertisements more if they are admirers of the celebrities in the advertisements. When a consumer likes the celebrity in the advertisement, he or she is more likely to accept what the celebrity says about the advertised product and therefore will develop more positive feelings toward the advertisement and the brand itself. Famous celebrities are able to attract attention and retain attention by their mere presence in the advertisement In the midst of the advertisement clutter, the advertisements that celebrities endorse also achieve high recall rates. When people see their favoured reference group members or celebrities in the advertisements, they pay more attention to them. Celebrities may also help reposition products. Products with sagging sales needs some boosting and in these Indian celebrities can help by way of the endorsing the product concerned.

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Personal factors

Ability and Knowledge Need to understand individuals capacity to learn. Learning, changes in a person's behaviour caused by information and experience. Therefore to change consumers' behaviour about your product, need to give them new information re: product...free sample etc. When making buying decisions, buyers must process information. Knowledge is the familiarity with the product and expertise. Inexperience buyers often use prices as an indicator of quality more than those who have knowledge of a product. Non-alcoholic Beer example: consumers chose the most expensive six-pack, because they assume that the greater price indicates greater quality. Learning is the process through which a relatively permanent change in behaviour results from the consequences of past behaviour.

Attitudes--

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Knowledge and positive and negative feelings about an object or activity-maybe tangible or intangible, living or non living.....Drive perceptions Individual learns attitudes through experience and interaction with other people. Consumer attitudes toward a firm and its products greatly influence the success or failure of the firm's marketing strategy. Honda "You meet the nicest people on a Honda dispels the unsavoury image of a motorbike rider, late 1950s. Changing market of the 1990s, baby boomers aging, Hondas market returning to hard core. To change this they have a new slogan "Come ride with us". Attitudes and attitude change are influenced by consumers personality and lifestyle. Consumers screen information that conflicts with their attitudes. Distort information to make it consistent and selectively retain information that reinforces our attitudes. IE brand loyalty. There is a difference between attitude and intention to buy (ability to buy) Personality-- all the internal traits and behaviours that make a person unique, uniqueness arrives from a person's heredity and personal experience. Examples include: Work holism Compulsiveness Self confidence Friendliness Adaptability Ambitiousness Introversion Extroversion Aggressiveness Competitiveness
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Traits affect the way people behave. Marketers try to match the store image to the perceived image of their customers. There is a weak association between personality and Buying Behaviour; this may be due to unreliable measures. Nike ads. Consumers buy products that are consistent with their self concept. Lifestyles-People coming from the same subculture, social class, and occupation may have quite different lifestyles. Lifestyle is a person's pattern of living as expressed in his or her psychographics. It involves measuring consumers' major AIO dimensionsactivities (work, hobbies, shopping, sports, social events), interests (food, fashion, family, recreation), and opinions (about themselves, social issues, business, products). Lifestyle captures something more than the person's social class or personality. It profiles a person's whole pattern of acting and interacting in the world. Several research firms have developed lifestyle classifications. The most widely used is the SRI Consulting's Values and Lifestyles (VALS) y typology (see Figure 5.3). VALS classifies people according to how they spend their time and money. It divides consumers into eight groups based on two major dimensions: self-orientation and resources. Self-orientation groups include principle-oriented consumers who buy based on their views of the world; status-oriented buyers who base their purchases on the actions and opinions of others; and action-oriented buyers who are driven by their desire for activity, variety, and risk taking. Consumers within each orientation are further classified into those with abundant resources and those with minimal resources, depending on whether they have high or low levels of income, education, health, self-confidence, energy, and other factors. Consumers with either very high or very low levels of resources are classified without regard to their self-orientations (actualizers, strugglers). Actualizers are people with so many resources that they can indulge in any or all self-orientations. In contrast, strugglers are people with too few resources to be included in any consumer orientation

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Economic Situation A person's economic situation will affect product choice. Anna Flores can consider buying an expensive Nikon if she has enough spendable income, savings, or borrowing power. Marketers of income-sensitive goods watch trends in personal income, savings, and interest rates. If economic indicators point to a recession, marketers can take steps to redesign, reposition, and reprice their products closely. 4. Psychological factors A person's buying choices are further influenced by four major psychological factors: motivation, perception, learning, and beliefs and attitudes. Motivation A person has many needs at any given time. Some are biological, arising from states of tension such as hunger, thirst, or discomfort. Others are psychological, arising from the need for recognition, esteem, or belonging. Most of these needs will not be strong enough to motivate the person to act at a given point in time. A need becomes a motive when it is aroused to a sufficient level of intensity. A motive (or drive) is a need that is sufficiently pressing to direct the person to seek satisfaction. Psychologists have developed theories of human motivation. Two of the most popularthe theories of Sigmund Freud and Abraham Maslowhave quite different meanings for consumer analysis and marketing. Perception A motivated person is ready to act. How the person acts is influenced by his or her own perception of the situation. All of us learn by the flow of information through our five senses: sight, hearing, smell, touch, and taste. However, each of us receives, organizes, and interprets this sensory information in an individual way. Perception is the process by which people select, organize, and interpret information to form a meaningful picture of the world. People can form different perceptions of the same stimulus because of three perceptual processes: selective attention, selective distortion, and selective retention.

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People are exposed to a great amount of stimuli every day. For example, the average person may be exposed to more than 1,500 ads in a single day. It is impossible for a person to pay attention to all these stimuli. Selective attentionthe tendency for people to screen out most of the information to which they are exposedmeans that marketers have to work especially hard to attract the consumer's attention. Even noted stimuli do not always come across in the intended way. Each person fits incoming information into an existing mind-set. Selective distortion describes the tendency of people to interpret information in a way that will support what they already believe. Selective distortion means that marketers must try to understand the mind-sets of consumers and how these will affect interpretations of advertising and sales information. People also will forget much that they learn. They tend to retain information that supports their attitudes and beliefs. Because of selective retention, Anna is likely to remember good points made about the Nikon and to forget good points made about competing cameras. Because of selective exposure, distortion, and retention, marketers have to work hard to get their messages through. This fact explains why marketers use so much drama and repetition in sending messages to their market. Learning When people act, they learn. Learning describes changes in an individual's behavior arising from experience. Learning theorists say that most human behavior is learned. Learning occurs through the interplay of drives, stimuli, cues, responses, and reinforcement. We saw that Anna Flores has a drive for self-actualization. A drive is a strong internal stimulus that calls for action. Her drive becomes a motive when it is directed toward a particular stimulus object, in this case a camera. Anna's response to the idea of buying a camera is conditioned by the surrounding cues. Cues are minor stimuli that determine when, where, and how the person responds. Beliefs and Attitudes

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Through doing and learning, people acquire beliefs and attitudes. These, in turn, influence their buying behavior. A belief is a descriptive thought that a person has about something. Anna Flores may believe that a Nikon camera takes great pictures, stands up well under hard use, and costs $450. These beliefs may be based on real knowledge, opinion, or faith, and may or may not carry an emotional charge. For example, Anna Flores's belief that a Nikon camera is heavy may or may not matter to her decision. Marketers are interested in the beliefs that people formulate about specific products and services, because these beliefs make up product and brand images that affect buying behavior. If some of the beliefs are wrong and prevent purchase, the marketer will want to launch a campaign to correct them. People have attitudes regarding religion, politics, clothes, music, food, and almost everything else. Attitude describes a person's relatively consistent evaluations, feelings, and tendencies toward an object or idea. Attitudes put people into a frame of mind of liking or disliking things, of moving toward or away from them. Thus, Anna Flores may hold attitudes such as "Buy the best," "The Japanese make the best products in the world," and "Creativity and self-expression are among the most important things in life." If so, the Nikon camera would fit well into Anna's existing attitudes. Attitudes are difficult to change. A person's attitudes fit into a pattern, and to change one attitude may require difficult adjustments in many others. Thus, a company should usually try to fit its products into existing attitudes rather than attempt to change attitudes

Noodles History: Noodles can be regarded as the second staple after rice in Asian countries. The great thing about noodles is that they can be prepared in various combinations; with sauces, in soup, fried, with all kinds of meat, seafood and vegetables. When compared to rice, noodle meals are cheaper and more convenient. A great deal of time can be saved in the preparing, consuming and dish washing processes.
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Therefore, despite its ancient origins, it is highly suited to the fast beat of modern society. The traditional Chinese noodle stalls in Hong Kong has changed little over half a century. Like many traditional Chinese businesses, these were usually run by a family, (typically the father acts as the cook and master, the mother the cashier, and their children as waiters/ waitresses). Although the management of these stalls can be very flexible, they lack of control on the quality of food and customer service. Moreover, they do little to promote their shop image. The staffs seldom wear uniform, and little attention is paid to food hygiene and the shop interior. Some stalls have pets strolling around and some don't even have air conditioning. Usually the menu is only in Chinese language, which is placed either under the greasy table glass top or pasted along the walls.

The target customers are usually people in their neighbourhood and the business relied mainly on the low price strategies, or by word of mouth. The way in which the noodle is cooked is the crucial factor on getting return business. However, since the current generations of young people nowadays are able to receive higher education, they will not be eager to inherit their father's business. Given that running a noodle stall is not considered as a particular prestigious and well-paid job. Therefore when the master retires, he must pass on his technique to someone outside the family. It is a customary practice though for Chinese chefs not to pass on everything. Therefore, there is bound to be changes to the quality of the food once the business has changed hands. The Japanese noodle shops on the other hand are better organized. In the shop front, there is usually a display window showing wax models of different set meals. The wax models can imitate the food so successfully that it provides a mouth-watering image to the passerby. When one walks into the shop, he will be greeted politely by trained waitresses either wearing apron or some sort of uniform. The shop interior is carefully design to reflect Japanese culture and is always clean and hygienic. The menu is supplemented by some very attractive photographs. So that customer can be assured what they order will match their expectations, even if they cannot read the menu correctly.

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As the living standard of people in Hong Kong improves, their requirement on food is no longer just to fill the stomach. The target customers of Japanese noodles are usually the young generation and office workers. They are less price conscious and are willing to pay more for better food quality, service and eating environment. Although a bowl of noodle sold in a Japanese noodle shop could be at least three times higher than those sold in a Chinese noodle stall, many people still think that it is worth the money.

MAGGI
INTRODUCTION Ever since its launch in India in 1983, this brand has become synonymous with noodles. The bright red and yellow colours of the packet with the brilliant blue 2minute Noodles printed on it has found a place on every kitchen. Over the years, Maggi has grown as a brand and positioned itself as a Fast to cook! Good to Eat! Food product. 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. Julius, the son of an Italian immigrant came up with a formula to bring added taste to meals in 1863. Soon after he was commissioned by the Swiss Public Welfare Society, he came up with two instant pea soups & a bean soup- the first launch of Maggi brand of instant foods in 1882-83.Towards the end of the century, Maggi company was producing not just powdered soups, but bouillon cubes, sauces and other flavourings. However in India (the largest consumer of Maggi noodles in the world!) it was launched in 1980 by Nestle group of companies. Maggie had merged with Nestle family in 1947. When launched it had to face a stiff competition from the ready to eat snack segments like biscuits, wafers etc. Also it had other competitor the so called home made snacks which are till today considered healthy and hygienic. Hence to capture the market it was positioned as a hygienic homemade snack, a smart move.

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But still this didnt work, as it was targeted towards the wrong target group, the working women. After conducting an extensive research, the firm found that the children were the biggest consumers of Maggi noodles. Quickly a strategy was developed to capture the kids segment with various tools of sales promotion like pencils, fun books, Maggi clubs which worked wonders for it. 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. Further the MAGGI 2-MINUTE Noodles has been renovated to provide 20% of the RDA1 of Calcium and Protein for the core target group building on the nutrition proposition Taste bhi health bhi. The company could have easily positioned the product as a meal, but did not, as a study had shown that Indian mentality did not accept anything other than rice or roti as meal. They made it an easy to cook snack that could be prepared in just two minutes. The formula clicked well and Maggi became a brand name Nestls Maggie noodles are the leading brand in the instant noodles segment in India, enjoying a market share of 79.3%. The brand has grown to an estimated Rs 200 crores & contributes to around 10% of Nestle Indias top line. Being the pioneer in the noodles market has given it a first movers advantage over other brands. Maggi has regularly come up with new flavours and has recently launched two variantsVegetable Atta and Dal Atta noodles, catering to the increasing demand for healthy snacks.

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COMPANY PROFILE
NESTLE Nestle India

Nestle India is a subsidiary of Nestle S.A. of Switzerland. The company insists on honesty, integrity and fairness in all aspects of its business and expects the same in its relationships. Nestle India- Presence across India Beginning with its first investment in Moga in 1961, Nestls regular and substantial investments established that it was here to stay. In 1967, Nestl set up its next factory at Choladi (Tamil Nadu) as a pilot plant to process the tea grown in the area into soluble tea. The Nanjangud factory (Karnataka), became operational in 1989, the Samalkha factory (Haryana), in 1993 and in 1995 and 1997, Nestl commissioned two factories in Goa at Ponda and Bicholim respectively. Nestl India is now putting up the 7th factory at Pant Nagar in Uttaranchal. Nestle Story Nestl was founded in 1867 on the shores of Lake Geneva in Vevey, Switzerland and its first product was Farine Lacte Nestl, an infant cereal specially formulated by Henri Nestl to provide and improve infant nutrition. From its first historic merger
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with the Anglo-Swiss Condensed Milk Company in 1905, Nestl has grown to become the worlds largest and most diversified food Company, and is about twice the size of its nearest competitor in the food and beverage sector. Nestls trademark of birds in a nest, derived from Henri Nestls personal coat of arms, evokes the values upon which he founded his Company. Namely, the values of security, maternity and affection, nature and nourishment, family and tradition. Today, it is not only the central element of Nestls corporate identity but serves to define the Companys products, responsibilities, business practices, ethics and goals. In 2004, Nestl had around 247,000 employees worldwide, operated 500 factories in approx. 100 countries and offered over 8,000 products to millions of consumers universally. The Companys transparent business practices, pioneering environment policy and respect for the fundamental values of different cultures have earned it an enviable place in the countries it operates in. Nestls activities contribute to and nurture the sustainable economic development of people, communities and nations. Above all, Nestl is dedicated to bringing the joy of Good Food, Good Life to people throughout their lives, throughout the world.

Nestle Brands Milk Products & Nutrition Beverages Prepared Dishes and Cooking Aids Chocolates & Confectionary A Maggi noodle is a brand of instant noodles manufactured by Nestl. The brand is popular in Australia, India, South Africa, Brazil, Nepal, New Zealand, Malaysia, Singapore, Sri Lanka, Bangladesh, Pakistan, and the Philippines. In several countries, it is also known as "Maggi mee" (mee is Indonesian/Malay for noodles). Maggi noodles are part of the Maggi family, a Nestl brand of instant soups, stocks, and noodles. In Malaysia, there are fried noodles made from Maggi noodles known as Maggi goreng. Maggi noodles recently introduced a new variety of its noodles, to cater for the health conscious like 'No MSG', 'Less Salt', and 'No Trans fat'. Wholewheat flour based noodle variation marketed by the name "Vegetable Atta Noodles" has been introduced in India (Atta flour is used in preparing most forms of wheat based breads in India) and caters to health conscious buyers wary of the refined flour
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used in the regular Maggi noodles. This move helps the brand in India as suburban mothers, who feed the noodles to children as an afterschool snack, are the primary customers of the brand. Recently, a line of rice noodles and whole wheat with pulses, carrots, beans, and onions has also been introduced in India. In fact, "Maggi" has become a well-known brand for instant noodles in India and Malaysia. Nestl India Ltd (NIL) offered a variety of culinary products such as instant noodles, soups, sauces and ketchups, cooking aids (seasonings), etc., under the Maggi brand (Refer to Exhibit II for Maggi's product portfolio as of mid-2006). Of these, instant noodles had been NIL's main product category in the culinary segment since the launch of Maggi 2 Minute Noodles (Maggi noodles) in 1982. Over the years, Maggi noodles became a popular snack food product in India. In mid 2008, New Zealand supermarkets introduced replacement formulations for its Beef, Oriental, and Curry flavours. A new feature is an extra sachet containing dehydrated vegetables. Maggi claims the new range contains 88% less total fat and 86% less saturated fat than the average of top-three (unnamed) 2-minute-noodle competitors. The new Maggi range also has considerably lower fat than its own previous formulation. However, the salt content has been increased by 31 percent. Consumers have not reacted well to the new formulations, complaining that they want the original chicken flavour back Claimed to be "2 minute noodles", The Maggi noodle cake and seasoning is added into boiling water for two minutes and it is ready for consumption. Egg, seaweed, boiled vegetables or lemon can also be added to the noodles for a better flavour. Market Summary TARGET MARKETS Primary target: Children (<16) Nestle plans to widen its target audience by launching new variants Vegetable and Dal atta, Multi grain noodles for health conscious people.

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MARKET DEMOGRAPHICS Demographics: Region: urban, semi-urban, rural (recent) Occupation: Housewives, working professionals, self-employed Sex: Unisex Income: 1, 20,000 p.a. upwards Social class: Middle and upwards Family life cycle: Young, single, married with children. Behavioural: Occasions: Regular, Everyday user-urban, rural-depends on the temporal aspects of the consumers life (varied usage in terms of time of time of day, week, month, year) User status: first time user-rural, potential users-semi-urban, heavy users-urban Usage rate: Heavy user-urban, light-rural, medium-semi-urban Loyalty status: hard core and shifting loyal Buyer-Readiness Stage: rural-some are aware, semi-urban: some intend to buy (aware, informed), urban: informed (some desire, some intend to buy) Attitude toward product: Enthusiastic, positive. Psychographics: Lifestyle: Hard pressed for time CHILDREN Children as an age group are a marketers delight. With pester power children play a significant role in decision making and purchase choices of just about anything
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ranging from food items to beverages to chocolates. As consumers, children know exactly what they want and do not experiment too much with flavour or colour. Children rule Indian families consider children to precious gifts of God, and parents in all income groups do all they can for their offspring. Indian parents are still not completely comfortable with paid baby sitters or day care help and use the larger extended family or friends to help with care and supervision of children. Rush for pre-school admissions Throughout urban India, parents of nursery age children are looking to send them in the best private school they can afford. Pre-schools for toddlers in the 2-3 age group are mushrooming all over the country, as anxious parents recognise the perceived benefits these can bring. TEENAGERS The teenagers age group consists of children on the threshold of adolescence and as a segment are a difficult lot. Though they are not sure about their choices on an emotional plane, they are a trendy new group that is extremely savvy and self assured when it comes to taking decisions regarding consumer goods and wants. Urban children in this age group would have some amount of pocket money with an upper limit of Rs100 per month. Though allowances have gone up, parental control still exists over this market segment. Impulse foods rule the preference scale as far as the buying behaviour of teenagers in India is concerned.

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In fact, the top six expense items for teenagers seem to be impulse foods: 17% of the total pocket money spent on ice creams, 12% on chocolates and 10% each on soft drinks and fast food according to a newspaper report in the The Times of India. A key role to play in decision making With increased awareness through television and advertising, teenagers are an important influence on family decision-making in urban India. They have also mastered the art of nagging their parents into making purchases of gadgets or products that they want. Among the areas where they make their influence felt are the purchase of such items as a newly launched chocolate bar, instant noodles and breakfast cereal. With a penchant for hi-tech and an ease with new technology far superior to their parents, these teenagers are more familiar with operating mobile phones, the TV remote, DVD player and computer programmes, as well as the product features. Cricket-crazy boys Cricket is the obsession and passion of boy teenagers in India. This interest cuts across income and socio-economic groups. Low income boys will play on the streets
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with makeshift bats and stumps, middle-income children can be seen playing in gardens and at school, while boys from more well-to-do families go and play in organised coaching camps. With their education demanding less time at this age, parents are generally quite happy to see their boys spending so much time on cricket 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. 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. This age group has taken up to snacking as a way of life as they keep missing regular meals due to erratic schedules. They have longer waking hours and due to this the traditional three meals does not suffice with the need for filling snacks. 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. With a rise in employment opportunities in the Business Process Outsourcing (BPO) sector, 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. Summer jobs Until the 1990s, summer vacations were a time to relax, read and catch up with friends. This is no longer the case. Now, teenagers either find a summer job, or undertake activities such as a trek in the mountains, river rafting or rock climbing. Summer jobs may cover a range of activities from delivering newspapers to working in a restaurant

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YOUNG ADULTS Young adults (15-29 years old) represent the largest spending segment in the country. Youngsters are part of a middle-class boom in India. Of the US$30 billion spent by Indians on themselves in 2003, young adults spent close to US$10.5 billion with their spending levels. Need for convenience Many single working professionals have to live away rising 12% each year at twice the pace of the economys growth according to various trade press publications. Young adults grew 8% in numbers over the 1999-2004 periods and are likely to grow at approximately the same pace. 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, fast food restaurants, mobile phone companies, call centres and data processing firms. Many have access to disposable incomes of Rs8, 000-10,000 per month thanks to the BPO boom in India. This age group still does not have responsibilities of running a household, marriage or worry about their childrens education. Thus, this income is almost entirely spent on non-essential items. Most purchases made by this age group are on impulse. There are 16 million urban consumers in the 20-25 age groups. From their parents due to the demand of the jobs. This yuppies (young upwardly mobile professionals) class has a hard time preparing food and for them convenience is major issue. They are ready to pay a premium for quality and convenience. Also always being on the move they have a need for food item that can be easily consumed and disposed of MIDDLE-AGED ADULTS These middle aged men have strict preferences over food and they generally stick to their choices. They experiment less and go for products that will enhance their social status. The women in this age group are ones who the primarily buy food items for
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the entire household though their choices are shaped by the preferences of the household members. 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, men find themselves with children who are able to leave school or facing crucial board examinations. Some may also have wives with settled careers. 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. Others find themselves redundant in the new hire and fire labour environment. There is a trend for such people to enter the BPO sector as well Mid-life career change In urban India, among the middle class, there are a significant number of men who are making career switches, some out of choice and others out of necessity. Tired of their current salaried jobs, some are taking the entrepreneurial plunge, setting up businesses such as small IT- service firms, adventure tourism companies or leadership training consultancies. PENSIONERS In the 1950s and 1960s, government jobs were among the few acceptable job occupations for people from respectable households. Changing technology and globalisation have changed that with unconventional income opportunities now presenting themselves to Indians. 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. Pensioners have been the hardest hit section of the population. With declining interest rates, they have had to play a more active role in financial management. Some of them are even trying to keep abreast of current happenings and learning how to use a computer or access the Internet.

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There food preferences are shaped by their health conditions and they stick to their preferred food items. Independent living on the rise From the 1980s onwards, there has been a steady migration of young adults and students to the US, in search of better opportunities. Most have chosen to settle and make their lives in that country. Therefore, their ageing parents have had to learn to continue to live independently. Retirement communities viewed as an option Retirement homes were previously viewed negatively in India. If the elderly went there, it meant they had no one to care for them, and were in a sense for the destitute elderly. In the new urban India, however, well-appointed retirement communities are mushrooming, and couples in their 60s are going there of their own volition. While the numbers are not yet significant, a trend is likely to increase in line with growth in the numbers of Indias elderly. It is also now an option for the middleincome and salaried classes. In families where there is a proprietary business, or a family practice, two-to-three generations will continue to live together. MARKET NEEDS The urban Indian is used to having his dinner late from around 8:30 pm to as late as 11 pm. Hence a convenient snack between lunch and dinner is an often exercised option. In rural areas, smaller priced packs stimulate demand. Maggi is a fun and convenience brand which sits strongly in its position as a "good to eat, fast to cook" anytime snack and is popular across different age groups. Opportunities in practically all consumption categories arise in terms of "reach" and "medium of consumption". Hence the onus is on the company to make it easily available and affordable and in different sizes, catering to different categories of users like the new Maggi chota pack conveniently priced at Rs 5 for 50gms. The Indian palate is not too adventurous in terms of trying out new flavours. In fact
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today, Maggi have settled at standard flavours such as curry, masala, tomato and chicken and not much experimentation is necessarily required in the noodles market. People prefer to have it easily available and affordable. MARKET TRENDS The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. 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 The BRICs report indicates that India's per capita disposable income, currently at US$ 556 per annum will raise to US$ 1150 by 2015 -another demand driver. Spurt in The industrial and services sector growth is also likely to boost the urban consumption demand. Only about 8-10 per cent of output is processed and consumed in packaged form, thus highlighting the huge potential for expansion of this industry. Currently, 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. FICCI Federation of Indian Chambers of Commerce and Industry has predicted an overall growth of culinary products/snack food (10%).

MARKET GROWTH General growth of the Indian Noodles sector FY 2005-2006 FICCI states that the culinary products and snack category, under which Maggi noodles is classified, has had a robust growth of 8%. Growing by a more than robust 21% in current value and 16% in volume, growth in

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noodles will be among the fastest in the various packaged food products in India. (Refer Appendix A: Indian Instant Noodle Market Growth Graphs) Current value sales of noodles in stood at slightly over Rs 9 billion, with pouch instant noodles accounting for more than 66% of the total value sales. Growth of Maggi Noodles FY 2005-2006 For the FY 2005-2006, the growth of Maggi noodles was an impressive 15%, with sales at Rs 6.75 billion and profit at Rs 2 billion.

Maggi PRODUCT LENGTH

1. Noodles

Maggi 2-Minute Noodle ( Masala , Chicken, and Tomato) Maggi Dal Atta Noodles ( Sambhar taste) Vegetable Atta Maggi Noodles Maggi Rice Noodles (Lemon Masala, Chilly and Shahi Pulao) Maggi Cuppa mania (Masala yo, Chilli chow yo)

Curry

Chow

2. Sauces

Teekha masala Tomoto chatpat Imli khata mitha Tomato ketchup Hot and sweet Tomato pudina Ginger, Garlic & Coriander
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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


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Bhuna masala for gravy dishes Bhuna masala for vegetable dal

7.Maggi magic cubes Chicken Vegetarian masala

FOUR PS OF MARKETING FOR MAGGI PRICE Considering the price points in the market for Maggi, it should continue to position itself in the "snacks" category itself, since few would be willing to accept it as a meal (Indian Consumption Habits - Noodles still arent taken as proper food item). Affordable by all income groups. PLACE: The distribution network is well spread Easily available in all kirana stores, retail store etc. Market share

PROMOTION: Changed their advertising campaign- focus on health and nutrition. Celebrity endorsements. E.g . . . . Javed Jafferi Sales promotion in schools and offices, as the exercise of brand call. Market research exercise-regards of taste and health issues. This helped maggi to think about the customer. Distributed free samples-period of new launches.

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Invited housewives to send new innovative recipes. Maggi's first product extension was Maggi instant soups launched in 1988. With the launch of Maggi soups, NIL had become a pioneer in the organized packaged soup market in India... Taglines like 'Mummy, bhookh lagi hai' (Mom, I'm hungry), 'Bas 2-Minute,' (Only 2 minutes) and 'Fast to Cook Good to Eat' effectively communicated the product's benefits to target consumers.

Michael Porters Five Forces Model


New entrants 1. Top Ramen 2. Horliks foodles 3. Sunfeast Pasta

Suppliers 1. Distributers 2. Raw material 3. Packaging

Industrial Rivalry 1. Top Ramen 2. Horliks foodles 3. Chowmeen etc.

Buyers 1. Customers mind set 2. Brand Image

Substitutes 1. Fast Food 2. Soups 3. Pasta

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SWOT ANYLYSIS
Strengths Strong brand recall and the product is almost eponymous to the brand. Market leader with 79.3% market share in terms of value. Highest advertising share (72% (TV AdEx 2004-05)). Emotional relationship with the consumer. A strong distribution network of the parent company

Weakness Tagged as a product having no health value. It has tried to bring in innovation but has failed. (Dal Atta Noodles refer survey noodles). The product features have remained almost constant since inception in 1983 with any trial of innovation misfiring. Market share has fallen from the 80% in 1998-99 to 79.3% in 2005-06 Opportunities The instant noodles segment is projected to grow at a tremendous rate with the market size doubling by 2010. Increase in the potential consumer base i.e. single working professionals and student population .

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Rapid economic growth and rising disposable incomes make a strong case for a premium brand like Maggi. Upward trend of convenience food consumption. Huge untapped serviceable upward class rural base Threats Competition is increasing with established competitors in other segments are foraying into the noodles segment seeing the capacity of growth. Top ramen the prime competitor has come up with new exciting instant noodle Offerings like cup noodles and mug noodles which threaten to eat into Maggis market share. 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 has repositioned itself on a health platform with a new baseline Get on Top fortifying its product with calcium and vitamins. The product as priced higher than its main rival Top Ramen Horlicks come up with new Horliks foodles.

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Horlicks

Company profile
GlaxoSmithKline Consumer Healthcare Ltd is one of the largest players in the Health Food Drinks industry in India. The company is an Indian associate of GlaxoSmithKline plc, UK. The company's principal activities are to manufacture and distribute a wide range of healthcare foods, drugs, pharmaceuticals and dairy products. The products include malted milk food, malted foods, biscuits, energy and protein foods, milk powders, ghee, milk fluid and milk cream. The company has their manufacturing facilities located at Nabha in Punjab, Rajahmundry in Andhra Pradesh and Sonepat in Haryana. The products of GSK Consumer are categorized as Nutritional and Over the Counter (OTC) products. The Nutritional division includes health food drinks like Horlicks, which includes Junior Horlicks, Mother's Horlicks, Women's Horlicks, Horlicks Lite, and Horlicks biscuits, Boost, Viva and Maltova. The OTC division promotes and distributes a number of products in diverse categories, including prominent brands such as, Crocin, Eno and Iodex. GlaxoSmithKline Consumer Healthcare Ltd was incorporated in the year 1958 as Hindustan Milkfood Manufacturers Pvt Ltd and was promoted by Horlicks Ltd. The company became public in the year 1961. In the year 1969, Beecham plc acquired Horlicks Ltd and became the majority shareholder in Hindustan Milkfood Manufactures Ltd and in the year 1979, Beecham India Pvt Ltd merged with the company. In the year 1991, the name of the company was changed to HMM Ltd. In the year 1989, Beecham plc, UK and SmithKline, USA merged to form SmithKline Beecham plc. The company became part of SmithKline Beecham and the name was changed to SmithKline Beecham Brands Ltd. Again, in March 1994, the company name was changed to SmithKline Beecham Consumer Healthcare Ltd, reasserting their promise of providing healthcare to consumers. In the financial year 2000, the company acquired two new brands Viva and Maltova along with their patents and trademarks from Jagatjit Industries Ltd. The company also tied up the manufacturing capacity of Jagatjit Industries Ltd for the manufacture of Viva and Maltova on a long term contract. Glao Wellcom plc and SmithKline Beecham plc
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merged and form a global organization GlaxoSmithKline plc. As the company is an associate company of GlaxoSmithKline plc, the name of the company was changed from SmithKline Beecham Consumer Healthcare Ltd to GlaxoSmithKline Consumer Healthcare Ltd with effect from April 23, 2002. In the year 2002, the company commissioned their new Spray Drier plant at Sonepat and the commercial production was started form July 1, 2002. Also, Gussetted Pouch packing operations were relocated from Nabha factory to a 'State of Art' greenfield facility set up by a contracted third party at Mangaldoi, Assam. As a result of restructuring process, the company's packing facility at Kolkata was closed with effect from September 2002. The company is a consignment sales agent for marketing, selling & distribution of the brand Iodex with effect form January 1, 2002. In the year 2004, the company has launched Junior and Mother's Horlicks, Ready-to-Drink Horlicks & Boost and Hot Vending Machines. In July 2004, they launched Boost Energy Shake, a new chilled ready-to-drink variant of Boost in Tamil Nadu. Boost Energy Shake will be available in a 200 ml tetra pack In the year 2005, the company opened a new secondary manufacturing site (Legacy Foods) at Baddi in Himachal Pradesh. In February 2005, they launched Horlicks in a new Toffee flavour. Toffee Horlicks is the sixth flavour in the Horlicks portfolio. The other flavours are Chocolate, Vanilla, Honey Buzz, Standard and Elaichi. In the year 2006, the company increased their installed capacity of Malt Based Foods/Malted Foods and Ghee by 3260 MT and 924 MT respectively. With this expansion the total installed capacity of Malt Based Foods/Malted Foods and Ghee increased to 94060 MT and 4000 MT respectively. In the year 2007, the company increased their installed capacity of Malt Based Foods and Milkrose Baby Foods by 340 MT and 760 MT respectively. With this expansion, the total installed capacity of Malt Based Foods and Milkrose Baby Foods increased to 94400 MT and 2200 MT respectively. In the year 2008, the company launched Women's Horlicks, which is specially formulated for women. New Women's Horlicks is scientifically designed with a unique combination of Hemocaltm nutrients which provides 100% of the daily requirement of iron, calcium, Vitamins B2, B6, B12 & C for healthy blood and its normal function. New Women's Horlicks has no added sugar and is low-fat. It is available in two exciting flavors- Chocolate and Caramel in a jar with a unique flip top cap. Also, they launched Active Base and Boost White during the year. In January 2009, the company launched 'Activ Grow', which is a

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nutritious product launched for infant population. The product will be sold through prescription only.

Foodles

GlaxoSmithKlines (GSK) newest product Foodles has hit the markets about a month back in the instant noodle category. GSK, which is worlds fourth largest pharmaceutical, research-based company with a wide portfolio[1] of pharmaceutical products covering anti-infectives, central nervous system, respiratory, gastrointestinal/metabolic, oncology, and vaccines products and is known in India for its healthcare products and nutritional drinks, the most popular being Horlicks. The company generates a good revenue from the nutritional drinks division in India (in the range of Rs. 1,500 crore[2]) and now wishes to diversify its product range. But it remains to be seen if it can compete with Nestles Maggi, the most dominant product in the said category with an unbelievable market share of 91 % in an industry which is worth nearly Rs. 1200 crore and growing at 20 percent per annum. Foodles The Brand GSK launched Foodles under the name of Horlicks Foodles with two variants of noodles. - Regular and Multi-grain. It was first launched in south India which currently is the stronghold of GSK through the Horlicks brand. It is to go national within a span of 6 months. The company aims to gain a higher single digit market
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share within a year or two and establish itself as a player in the salty confectionary foods division. Foodles- What has been done The problem with instant noodles has always been the fact that it is not very healthy. Keeping that in mind, Maggi few years ago came out with the tag of taste bhi , health bhi which has helped it in maintaining sales. Foodles has taken this one step ahead and tried to create an USP out of the health factor associated with noodles. It has made TV advertisements which highlight the fact that even though it is an instant noodle, it is healthy and thus should be the consumers choice. Foodles also provides an "Health Maker" sachet which comes along with the noodles pack which contains the essentials of 5 vitamins[3]. Foodles has tried to create a product category for itself by differentiating itself from instant noodles. Also, Foodles is currently trying to appeal to the upper middle class in the urban areas and placed the product at a premium price with Its multigrain variant costing Rs 15 for 80 gm compared to Maggis Rs 10 for 80 gm[2]. Also, to use the distribution channel of Horlicks, initially single packs of Foodles were given for free. So far, the start of Foodles marketing strategy has been good, but is it enough to take on the leader of the market of 25 years? The past is not in favour of Foodles and it has also got to compete with brand like HUL along with Maggi. Let us examine what more strategies can they can adopt to appeal to the market.

Interesting Facts:Horlicks was first invented to substitute milk as baby food The brand has been endorsed by Amitabh Bachchan on the radio(1960-70), Moon Moon Sen and her daughters Raima and Riya (1980s) and Vishwanathan Anand In India, over 2 billion cups of Horlicks are drunk every year! Biggest market is India

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6th most trusted brand in India (AC Nelson) Most trusted health drink brand (Economic Times 04) More than 50% market share in health drink market.

Evolution The company believed in Growth through innovation. Previously Horlicks was imported but as the demands exceeded they set up 2 production units in India to fulfill the demands of the Indian population. This came as a solution to Indian market as a health drink. Then Horlicks entered the biscuit market and later in 1995 they came up with Junior Horlicks as a baby food supplement. Viva and Maltova were acquired by the company in 200 and 2001 that increased the product range. Womens Horlicks came into picture initially nursing mothers and then to catering specific needs of women. Horlicks adopted certain strategies to deal with competitors and came up with attractive packaging and various flavours. Horlicks conducted clinical trials and campaigned Taller Stronger Sharper. Horlicks segmented the market to increase its market share. It focused on children to encash their increasing population. Then it launched Horlicks Lite which is specially formulated keeping in mind nutritional needs of adults and also for use by people with diabetes. Horlicks also entered the instant noodle market with Foodles and Nutribar came as a energy bar focused on the young generation, these two products were focused as a healthy solution to the existing fad market (plain maggi and energy bars Recently Chill Dood is launched in the instant milk shake focused on children. Horlicks is also involved in several campaigns one being the ASHA project catering exclusively to the needs to the rural markets.
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variant

segment

communication medium usededium

Junior Horlicks (1995)

People who are conscious about their kids nutrition and better health. Pre schoolers

ad highlightedThe key message is need creation for nutrition in preschool children. The handwritten font style created a sense of innocence. A-Z nutrition along with DHA for brain development Organized nationwide events like- Wiz kid & Dream Team. Badlo Apne Bachpan Ka Size-Clinically proven in India that it makes kids Taller, Stronger, Sharper Introduced in chocolate, elaichi & vanilla flavour to attract children Ads promoted :All round development of the baby. Improvement in the birth weight of the baby. Improvement in

Horlicks Ninja (1997)

Children between 715 years

Mothers Horlicks (1997)

Pregnant women Breast feeding women

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the quality and quantity of breast milk during lactation

Horlicks Biscuits (1992)

Parents Children

Solid Nourishment containing 100% RDA of calcium. Available in standard & elaichi flavour to highlight great taste & nourishment factor Multi cereal bar with vital nutrients, fibre and honey. Best suited for your apetite anywhere anytime

Horlicks Nutribar (2009)

Children Adults

Horlicks Foodles (2010)

Growing children

Whole wheat and nutrients. Rich in Vitamin A, Vitamin C and calcium. Health maker with power vitamins

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MARKET SUMMARY
FOUR PS OF MARKETING FOR FOODLES

Product:
Horlicks is a widely regarded and highly respected 130-year-old brand. GSK has four brands in the health food drinks segment. Apart from Horlicks, which contributes Rs 600 crores in revenue to the consumer healthcare division, it has Boost, Maltova and Viva the last three are much smaller brands than Horlicks. Faced with stagnating sales in the health food drinks segment, the company has chalked out an aggressive brand push strategy and a revamp for its flagship brand, Horlicks. The relaunch aims to focus on children as Horlicks was previously considered as a nourishment drink for old people. The company expects Horlicks contribution to the total turnover to be around Rs 800 crore which amounts to a major chunk of the companys turnover. Horlicks is a nourishing malted food drink which combines the wholesome goodness of malted barley, wheat and dairy ingredients. For more nourishment, Glaxo SmithKline Consumer Healthcare India Ltd (GSKCH) has relaunched its flagship brand Horlicks. To enable consumers choose different flavours, Horlicks is now available in Regular, Chocolate, Creamy Vanilla and Honey Buzz varieties in a new package. Horlicks drinks provide the following essential nutrients: Proteins, Carbohydrate, Fat, Vitamin A, Niacin, Vitamin B1, VitaminB12, Vitamin E, Vitamin B6, and Iron & Calcium

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Price:
HORLICKS Flavors (Rs) Elaichi Weight(gm) Jar Refill Pack 200 57 500 108 103 1000 199 189 HORLICKS JUNIOR Weight(gm) Jar Refill Pack 200 58 500 114 105 Chocolate Jar Refill Pack 57 108 103 Honey Buzz Jar 108 Vanilla Jar 108 -

Target market:
Earlier Horlicks believed, white drinks are for the entire family in contrast to the browns, whose prime target audience is children. This is probably because whites whose growth rate is faster than the brownshave the added advantage of being perceived as food which enhances the healthy image of those who are recovering. But gradually they realized that they have to focus on one segment of market that is children. Horlicks is now positioned as a pleasurable nourishment drink aimed at children between the age group of 8 -14. Nowadays children have tremendous influence on the things purchased for the family and therefore we want children to prefer Horlicks as a pleasurable nourishment drink. While all the action will be in the general Horlicks segment, the focus of Junior Horlicks (target segment: kids between one and three) will continue to remain the same. Promotion: The company has earmarked around Rs 10 crores for brand promotion throughout 2003, and 70% of this will be spent in next six months. Sixty-five per cent of the adspend (around Rs 10 crores) will be for the visual medium and the balance for the print and others. Apart from the high-decibel media campaign, the company also plans to conduct an inter-school competition called Activity 2003 in which around 1.5 million students are expected to take part. Unlike its other drink (the Rs 170crore Boost, promoted by Sachin Tendulkar); the new Horlicks does not have a brand ambassador. While all the action will be in the general Horlicks segment, the focus of Junior Horlicks (target segment: kids between one and three) will continue to remain

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the same. The brand will continue to talk to the mother since the purchase decision rests with her. The health drink brand from GSKCH Horlicks which has been traditionally targeted as a great family nourisher, has entered into the highly competitive segment of instant noodles through its newly introduced Horlicks Foodles, aimed to explore the category of salty snack food market. Thus, Horlicks kick-off the Foodles offerings in two healthy variants: Regular and 4 Grain. Both variants come with a trademarked Healthmaker sachet which has 9 Power Vitamins. Besides, the 4 Grain variant is made with nutritious grains like Rice, Ragi, Wheat and Corn. As a sub-variant, each of the two varieties comes in three different flavours The snack food in Noodles as such has no nutrition value (In fact, it is often criticized as a junk food) but when it is combined with veggies it tastes better (Probably better than the plain maida variant!) and could also form a healthy snack for kids. POSITIONING: It was initially introduced both a substitute & an additive to milk and it was initially positioned itself as food for convalescing & a nutrient supplement for kids only. PROMOTION: Organized nationwide events like- Wiz kid & Dream Team. Epang Opang Japang . Say No to noodles. The word noodles replaced with Foodles.

CAMPAIGN: Badlo Apne Bachpan Ka Size, takes the thought to the next level by communicating how Horlicks enables kids to have a bigger, better, childhood while growing Taller, Stronger, Sharper.

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Place:
It has a strong marketing network in India comprising over 1800 wholesalers and direct coverage of over 4,00,000 retail outlets. Horlicks sales have been strong in the south and eastern markets which contributes about 46 per cent and 47 per cent of the total sales. Milk-deficient South and East preferred white liquid powders (Horlicks, Viva, and Complan) as the drink could be prepared with hot water.

Market Share of the Horliks

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Michel Porters model for Horliks foodles

New entrants 1. Top Ramen 2. Sunfeast Pasta

Suppliers 1. Distributers 2. Raw material 3. Packaging

Industrial Rivalry 1. Maggi 2.Top Ramen 3. Chowmeen etc.

Buyers 1. Customers mind set 2. Brand Image

Substitutes 1. Fast Food 2. Soups 3. Pasta

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RESEARCH METHODOLOGY
STAGES IN RESEARCH :

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Problem Defination
To identify the consumer characteristics of the fast food industry. To understand the influence on purchasing consumers mind set. To know about customer acceptance of the product. To see the perception of consumers between any two fast food region of Vadodara. To understand why customer buy a particular product. To help the company to know what consumer want in the product. To understand Brand Imagery, Brand Quality perceived by customers, Brand credibility, consideration, superiority and feelings. RESEARCH DESIGN: Research Design: The research will be carried out in the form of a survey which will be done in Vadodara. The population has been segmented on the basis of Age Group Sample Design: The target population for our study is households. The sample will be selected by a simple random sampling method . Sample Size: The sampling unit is 150 which are divided as follows: Number respondents Age-group Survey Locations 10 45 Pune of 150

Age Group Number of Respondents

10 - 25 50

25 - 35 50

35 45 50

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DATA COLLECTION PLAN


Data Gathering:
This study involves data collection (primary research) from different households in four different areas of PUNE

SURVEY RESULTS:
1. Do you consume ready to eat food like noodles and pasta?

Chart Title
120 100 80 60 40 20 0 Yes No 45 100

Many people eat now days ready to eat food. Here maximum no is 82%.in this segment working women are there so they preferred ready to eat food such as noodles, pasta, etc.

2. Which of the following food item would you consume?

Chart Title
60 50 40 30 20 10 0 Maggi Top Ramen foodles pasta

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Most of people eat Maggi such as (55% ) and top ramen. Foodles has gained the market share of Maggi .Better advertisement campaign of foodles has been created awareness of foodles. But still Maggi has more demand than the Foodles.

3. What is the frequency of consumption?

Chart Title
70 60 50 40 30 20 10 0 Everday more then a week once amonth No particular pattern 33 27 18 62

The frequency of Maggi consumption is more than any other products. Maggi is still market leader in this segment. 4. What is the brand that comes to your mind when we say the word noodles?

Chart Title
70 60 50 40 30 20 10 0 Maggi Top Ramen Foodles Horliks Sunfeast pasta Top Ramen, 33 Horliks Foodles , 26 Maggi , 61

Sunfeast pasta, 20

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Brand Associations:

Sources of Brand equity like brand association of Maggi as a Brand was found highest with the age group of 10-25 and the product category associated with it was the noodles category Consumers in the age segment of 10-25 could easily relate Maggi to noodles. In the income wise category the brand association was highest with the income group of 25k-40k were more than 40 respondents associated Maggi with noodles .The implications from the findings discussed above seem that Maggi has good brand association in terms of noodles. Consumers presume Maggi as Noodles and the companys philosophy of projecting the brand as noodles brand seem to be viable in this regard. 5. Are you aware of Horlicks foodles ?

Chart Title
100 80 60 40 20 0 YES NO 56 84

There are total number of 84 respondents who said that they are aware of horlicks but there are only 56 respondents who not aware of the same..

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6. Would you like to try Horlicks Foodles?


90 80 70 60 50 40 30 20 10 0 Yes No 57 83

As Foodles has Brand name Horlicks has been associated with it so many people said to try it. Also the impact of advertisement has been created the curiosity regarding the foodles. So people are ready to try it. Horliks come with a trademarked Health maker sachet which has 9 Power Vitamins. Besides, the 4 Grain variant is made with nutritious grains like Rice, Ragi, Wheat and Corn. As a sub-variant, each of the two varieties comes in three different flavors. 7. How do you aware of Horlicks?
50 45 40 35 30 25 20 15 10 5 0 Friends Newspaper Hording T.V ads Radio Family 23 17 12 13 31 44

The awareness through advertisement has shown by more than any other medium of media. Then newspapers have also shown the positive impact regarding to foodles. It is suggested that foodles has to concentrate on TV advertisement. Horliks

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advertisement SAY No TO NOODLES which is gaining popularity and attracting customer also giving an impact on the minds of customers who are health conscious specially mother who are very worried about their growing childs health. Already Horliks has gained named in the segment of health drink so they are saying that our noodles are healthy to you and your family through various advertisements. 8. On a scale of 1 to 5 rate Maggi on the following parameters (1 very good, 2good, 3medium, 4 bad, 5very bad)
120 100 80 60 40 20 0 98 87 89

99 78 56 45 86

9. on a scale of 1 to 5 rate Horlicks foodles on the following parameters

(1 very good, 2good, 3medium, 4 bad, 5very bad)

120 100 80 60 40 20 0 98 87 89 78 56 45 99 86

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10. According to you which age group prefer Maggi most?

70 60 50 40 30 20 10 0

63

32 26 19

4 12

13 26

27- 40

41 above

11. According to you which age group prefer foodles most?

70 60 50 41 40 30 20 10 0 4 12 13 26 27- 40 41 above 25 16 58

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12 .Which of the following do you think healthier product?

60 51 50 40 30 23 20 10 0 . Maggi Horliks Foodles Top Ramen Sunfeast Pasta 38 28 Series1

13. Which feature out of the following instigates you to buy the product of your choice?

60 50 40 30 20 10 0 Family Individual Decision Promotional /advertisement instigated decision 48 45 34

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14. Do you keep switching on products?

100 80 60 40 20 0 Yes 48

92

No

15. Demographic Information Age: Gender: M-------Education: F---------

--------------------------

Occupation: ---------------------------Income: Childrens: ---------------------------------------------------------

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RECOMMENDATIONS
After the conducted study following recommendations could be sited for Maggi Brand. To gain maximum leverage in terms of profit the company should pay emphasis on segments with age groups 25-35 and above .Advertising is the key to success. Targeting these segments will not only enhance the companys profit margins but also it will leverage the brand image of Maggi. The company should advertise its products by depicting attributes related to Health like Nutrition values, % of Vitamins, Proteins etc.This would help in customers perceiving the product as Healthy Foray into other food products like chips, chocolates etc under its sole brand name would not only help in Brand extension but will also enhance Maggis market share.

Conclusion:
The food processing business in India is at a nascent stage. Currently, only about 10% of the output is processed and consumed in packaged form thus highlighting huge potential for expansion and growth. Traditionally, Indians believe in consuming fresh stuff rather than packaged or frozen, but the trend is changing and the new fast food generation is slowly changing. Maggi Today The year 2010 saw India leading in worldwide Maggi sales. The brand has grown to an estimated value of Rs 160-170 crores and contributes at least 89% to Nestle Indias top line. All the same, some FMCG analysts feel that the brand has not done much to expand the noodles category. Even after 25 years of its launch, the size of the instant noodles market is yet quite small at Rs 300 crores. But yes, the parent company, Nestle India Limited has certainly encouraged the brand to enter into other culinary products

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STPD ANALYSIS OF MAGGI BRAND Segmentation: Market Segmentation divides the heterogeneous market into homogenous groups of customers who share a similar set of needs/wants and could be satisfied by specific products. Maggi Brand have segmented the market on the basis of lifestyle and habits of URBAN FAMILIES.

Target: Market Targeting refers to evaluating and deciding from amongst the various alternatives, which segment can be satisfied best by the company. The Maggi Brand have mainly targeted the Kids, Youth, Office Goers & Working Woman which falls into the category of convenience-savvy time misers who would like to get something instant and be over with it quickly.

Positioning: Market Positioning is the act of designing the companys offerings and image to occupy a distinctive place in the minds of the target market. The goal of positioning is to locate the brand in the minds of consumers to maximise the potential benefit to the firm. Maggi has positioned itself in the SNACKS category and not in the meal category since Indians do not consider noodles as a proper food item. Therefore Maggi have developed its brand image of instant food products with positioning statements such as 2 minutes noodles and Easy to cook, good to eat.

Differentiations:

Points-of-difference

(PODs)

are

attributes

or

benefits

consumers strongly associate with a brand, positively evaluate and believe they could not find to the same extent with a competitive brand. The Maggi Brand have also differentiated its brand image from its competitors in terms of taste, flavours and packaging. Maggi have launched wide varieties of products in different flavours which can attract larger set of customers. Maggi products are also available in different sizes catering to different customer needs.

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STPD Analysis of Horliks Segmentation: Market Segmentation divides the heterogenous market into homogenous groups of customers who share a similar set of needs/wants and could be satisfied by specific products. Horlicks have segmented the market on the basis of lifestyle and habits of URBAN FAMILIES.

Target: Market Targeting refers to evaluating and deciding from amongst the various alternatives, which segment can be satisfied best by the company. The Horlicks Brand have mainly targeted the Kids, Youth, Office Goers & Working Woman which falls into the category of Health-savvy who would like to get something instant and be over with it quickly and it will be healthy.

Positioning: Market Positioning is the act of designing the companys offerings and image to occupy a distinctive place in the minds of the target market. The goal of positioning is to locate the brand in the minds of consumers to maximise the potential benefit to the firm. Foodles has positioned itself in the SNACKS category and not in the meal category since Indians do not consider noodles as a proper food item. Therefore Foodles have developed its brand image of instant food products with positioning statements such as No to noodles.

Differentiations:

Points-of-difference

(PODs)

are

attributes

or

benefits

consumers strongly associate with a brand, positively evaluate and believe they could not find to the same extent with a competitive brand. The Foodles Brand has also differentiated its brand image from its competitors in terms of taste, flavours and packaging. Foodles have launched wide varieties of products in different flavours which can attract larger set of customers. Foodles products are also available in different sizes catering to different customer needs.

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LIMITATIONS:

The present study is confined to a minimal sample size and may not reflect the opinion or response of the entire population in general. The results of our study are entirely confined to the responses of the Pune consumers and might deviate in terms of actual population as a whole. Recommendations given after the study are entirely dependent on the survey and the secondary analysis done in the report.

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Bibliography
Books and Readings Marketing Philip Kotlar Consumer behaviour-Michel R Solomon. Websites www.Google.com www.Yahoo.com www.gsk-ch.in www.nestle.in/ http://trak.in/tags/business/2010/08/05/horlick-foodles-maggi-noodles/ en.wikipedia.org/wiki/Maggi bestadreviews.blogspot.com www.consumerpsychologist.com/

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Annexure
Questionnaire
1Do you consume ready to eat food like noodles and pasta? 2Which of the following food item would you consume? 3What is the frequency of consumption? 4 What is the brand that comes to your mind when we say the word noodles? 5 Are you aware of Horliks foodles 6 How do you aware of Horliks? 7 Would you like to try Horliks Foodles? 8 On a scale of 1 to 5 rate Maggi on the following parameters (1 very good, 2good, 3medium, 4 bad, 5very bad) 9 on a scale of 1 to 5 rate Horliks foodles on the following parameters (1 very good, 2good, 3medium, 4 bad, 5very bad) 10 According to you which age group prefer Maggi most? 11. According to you which age group prefer foodles most? 12 .Which of the following do you think healthier product? 13. Which feature out of the following instigates you to buy the product of your choice? 14. Do you keep switching on products? 15. Demographic Information Age: Gender: M-------F---------

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Education:

--------------------------

Occupation: ---------------------------Income: Childrens: ---------------------------------------------------------

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