Professional Documents
Culture Documents
ON
“MARKETING STRATEGIES OF MAGGI.”
1
INDEX
Table of contents
Student declaration
Certificate
Acknowledgement
Executive summary
CHAPTER-1 INTRODUCTION
About the industry
Company Profile
CHAPTER-2 LITERATURE REVIEW
Literature Review
About the Topic
CHAPTER-3 RESEARCH METHODOLOGY
Research Objective
Research methodology
Sample size
Sampling method
Instruments for data collection
Limitations
CHAPTER-4 ANALYSIS AND INTERPRETATION
4.1 Analysis and Interpretation
CHAPTER-5 FINDINGS AND SUGGESTIONS
Findings
Suggestions
CHAPTER-6 CONCLUSION
BIBLIOGRAPHY
ANNEXURES
2
DECLARATION
3
CERTIFICATE
4
ACKNOWLEDGMENT
I offer my sincere thanks and humble regards to Chanderprabhu Jain College of Higher
Studies and School of Law, GGSIP University, New Delhi for imparting us very
valuable professional training in B. Com(H).
I pay my gratitude and sincere regards to Ms. Garima Khatri, my project guide for
giving me the cream of her knowledge. I am thankful to her as she has been a constant
source of advice, motivation and inspiration. I am also thankful to her for giving her
suggestions and encouragement throughout the project work.
I take the opportunity to express my gratitude and thanks to our computer lab staff and
library staff for providing the opportunity of utilise their resources for the completion
of the project.
Student’s Signature
5
EXECUTIVE SUMMARY
The project aims at understanding the Marketing strategies of Nestle Maggi. Research has
demonstrated conclusively that it is far more costly to win a new customer than it is to maintain an
existing one. And there is no better way to retain a customer than to exceed his expectations. For this
purpose it is essential to know the level of customer satisfaction.
The focus of my research was the measurement of customer satisfaction provided by Nestle Maggi.
There can be no better opportunity to interact with the external as well as the internal customers of an
organization. Finally the results of the research verify the fact that keeping the customer satisfied is
the best strategy to not only retains the existing customers but also to expand the business to new
horizons.
The term FMCG refers to those retail goods that are generally replaced or fully used up over a short
period of days, weeks, or months, and within one year. This contrasts with durable goods or major
appliances such as kitchen appliances, which are generally replaced over a period of several years.
FMCG have a short shelf life, either as a result of high consumer demand or because the product
deteriorates rapidly. Some FMCGs – such as meat, fruits and vegetables, dairy products and baked
goods – are highly perishable. Other goods such as alcohol, toiletries, pre-packaged foods, soft drinks
and cleaning products have high turnover rates.
6
CHAPTER 1 :
INTRODUCTION
7
1.1 ABOUT THE INDUSTRY
Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer packaged goods.
Items in this category include all consumables (other than groceries/pulses) people buy at regular
intervals. The most common in the list are toilet soaps, detergents, shampoos, toothpaste, shaving
products, shoe polish, packaged foodstuff, and household accessories and extends to certain electronic
goods. These items are meant for daily of frequent consumption and have a high return.
The Indian FMCG sector with a market size of US$14.8 billion is the fourth largest sector in the
economy. The Indian FMCG sector with a market size of US$14.8 billion is the fourth largest sector
in the economy.At present, urban India accounts for 66% of total FMCG consumption, with rural
India accounting for the remaining 34%.The growing incline of rural and semi-urban folks for FMCG
products will be mainly responsible for the growth in this sector, as manufacturers will have to deepen
their concentration for higher sales volumes.Major Players in this sector include Hindustan Unilever
Ltd., ITC (Indian Tobacco Company), Nestlé India, GCMMF (AMUL), Dabur India, Asian Paints
(India), Cadbury India, Britannia Industries, Procter & Gamble Hygiene and Health Care, Marico
Industries, Nirma,Coca-Cola, Pepsi and others.As per the analysis by ASSOCHAM, Companies
Hindustan Unilever Ltd , Dabur India originates half of their sales from rural India. While Colgate
Palmolive India and Marico constitutes nearly 37% respectively, however Nestle India Ltd and GSK
Consumer drive 25 per cent of sales from rural India.
A rapid urbanization, increase in demands, presence of large number of young population, a large
number of opportunities is available in the FMCG sector. The Finance Minister has proposed to
introduce an integrated Goods and Service Tax by April 2010.This is an exceptionally good move
because the growth of consumption, production, and employment is directly proportionate to
reduction in indirect taxes which constitute no less than 35% of the total cost of consumer products -
the highest in Asia.. The bottom line is that Indian market is changing rapidly and is showing
unprecedented consumer business opportunity.
8
SOME OF THE LEADING COMPANIES
9
1.2 COMPANY PROFILE
NESTLE INDIA LTD.
Nestlé S.A. is among the largest consumer packaged goods companies in the world, founded and
headquartered in Vevey, Switzerland. Nestlé originated in a 1905 merger of the Anglo-Swiss Milk
Company, which was established in 1866 by brothers George Page and Charles Page, and the Farine
Lactée Henri Nestlé Company, which was founded in 1866 by Henri Nestlé, whose name meant
"Little Nest". The company grew significantly during the First World War and following the Second
World War, eventually expanding its offerings beyond its early condensed milk and infant formula
products. Today, the company operates in 86 countries around the world and employs nearly 283,000
people.
10
11
12
VIP INDUSTRIES LTD.
The world's second largest and Asia’s largest luggage maker based
in Mumbai, Maharashtra, India. The first VIP suitcase was manufactured in 1971.
Since then, VIP Industries has sold over 60 million pieces of luggage. The
company has more than 8,000 retail outlets across India and a network of retailers
in 50 countries. VIP's products are imported in numerous other countries. It
acquired United Kingdom luggage brand Carlton in 2004. The company is under
the leadership of Piramal family, with Radhika Piramal as the vice chairperson.
13
VIP INDUSTRIES LTD.
Happy Journey!
Industry Luggage
Founded 1971
Number of 1645
employees
14
1. ARISTOCRAT
The Company was incorporated as a private limited company on 18th May, and
converted into a public limited company on 10th November, 1986. It was
promoted by Jal. S. Engineer's family and their associates. The Company
introduced moulded luggage items under the brand name "ARISTOCRAT".
The main object of the company is to Manufacture moulded luggage and all kinds
of plastic materials.
Aristocrat caters to the demands of the frequent traveller of the Indian heartland.
Since its inception, this brand has strived hard to provide durable products at a
pocket friendly cost.
Aristocrat is the brand which understands that superior quality is not a synonym
for exorbitant prices.
From being the trademark Suitcase and Briefcase of the yester-years to being the
up-to-date soft luggage makes, Aristocrat has had a remarkable journey which
stretches over decades. Over the years, this brand has evolved according to the
change in demand and times.
15
2. ALFA
Alfa is popularly known as the value-for-money brand from the house of VIP
Industries Ltd. The brand came into existence in the year 1987 and quickly
became one of the biggest brands in the luggage industry of India.
With hard luggage products in its kitty, Alfa caters to the various demands of the
value conscious customers.
Apart from hard luggage, which was its ante for the first 20 years, Alfa has grown
and adapted itself to match the rising demand of soft luggage in the trade.
16
3. SKYBAGS
Apart from being the first Indian brand to manufacture printed polycarbonate
luggage, Skybags also manufactures a wide variety of products like trolleys,
rucksacks, backpacks, duffel-bags, laptop bags, everyday travel accessories and
short haul essentials made from quality materials.
17
4. VIP BAGS
Established in 1971, their, VIP Bags, has made a mark in the luggage
industry with at-par quality and vibrant designs. This is the result of the
strong urge to understand the changing needs and tastes of the judicious
and quality conscious traveller. As a result VIP has held the No.1 rank in
Asia for luggage manufacturing.
VIP Bags, the leading brand of VIP Industries has also re-launched their
largely successful campaign, 'Life Leke Chal', with a desire to reach and
satisfy the luggage needs of more customers all over the nation. This
campaign was built around 3 different bags with their unique features, from
sturdy and durable bags, Teflon coated anti stain and water resistant bags
to the lightest bag in the VIP Portfolio.
VIP’s lightest range of bags starts from 1.9kgs and is the lightest ever in
the portfolio. This range was designed for the new age traveller, keeping
in mind the modern airline luggage restrictions while setting a new
benchmark in the luggage industry.
18
5. CARLTON
Carlton celebrates this maverick spirit and is their partner in their journey to
become ‘The New Face of Business.
Instinct, passion, innovation; these are some of the qualities which are vital for
this new upcoming race of entrepreneurs.
Carlton's new marketing positioning as ‘The New Face of Business’ positions the
brand as the luggage of choice for the daring new business generation and
celebrates their remarkable, out-of-the box qualities.
19
CHAPTER 2:
LITERATURE REVIEW
20
LITERATURE REVIEW
VIP is an attractive play on boost in urban and semi urban consumption. Increased
spend on A&P is likely to result in higher brand recognition and recall going
forward. Focus on premium brands will drive margin expansion. Shifting trend
towards quality products provided by organized players and increasing tourism
in and out of India bode well for the company. With these tailwinds we expect
the company to witness strong growth momentum in the coming years.
- HDFC SECURITIES
The country’s largest luggage and backpack-maker VIP Industries has seen GST
come-in as a great leveller. As the price difference with the unorganised sector
shrinks, the luggage-maker is looking to focus on the volume segment with mass
brands ‘Alfa’ and ‘Aristocrat’.
Market sources say that it is the mid-market segment (₹3,000 and above) where
the company has its strongest presence through brands like ‘Skybags’ and ‘VIP’.
The other major players in the domestic luggage market include American
Tourister, Samsonite, Safari and Delsey.
- THE HINDU
21
VIP Industries have risen by 72 percent in the past years. However, given the
secular theme, gains on account of shift from unorganised to organised, these
companies are ideal for investors with a longer term investment horizon.
VIP Industries (market cap: Rs 2,670 crore), is now the second largest player in
the world and largest in Asia. The company derives ~45 percent of its sales from
the VIP brand, 27 percent plus from Skybags brand, 20 percent from Aristocrat
and Alfa combined, and ~8 percent combined from premium Carlton and Caprese
brands.
Over the past few years, VIP has wrested share from Samsonite across segments,
though it has lost share to Safari, primarily in the value segment. VIP gained large
market share in backpacks and has become the market leader from a nil presence
a few years ago.
A stable and a matured player with a diverse offering, VIP will balance growth
and profitability going forward and be a secular play on this theme.
Investors should gradually accumulate the stocks with 60 percent weight in VIP
to capture stability and growth of this highly promising segment.
- MONEY CONTROL
22
ABOUT THE TOPIC
This report discusses about the marketing strategy of the company that has made
them Asia’s biggest and world’s second largest luggage seller.
VIP has always been a market leader and a category-defining brand. The growth
of the brand continues as it remains relevant to the current generation. The major
strength behind VIP is the understanding of the Indian consumer; and as the
consumer has evolved, the product has also evolved. The basic strategy the brand
has been working on is bringing innovations and presenting it to the mass market.
VIP is seeing a global trend of people moving from soft luggage to polycarbonate
luggage. They are taking the lead in India in polycarbonate luggage and launched
Verve. The brand facilitates connection with the new consumer. The range of
polycarbonate luggage is going to revolutionise the luggage category in India and
slowly the market will follow VIP and move to this. All the latest communication
from VIP is looking to connect to the young consumer, and is around the benefits
of these stylish polycarbonate bags.
VIP follows distinct communication and retail strategies for its five brands.
The company says the biggest gain from segmentation is cut in
cannibalisation among its different brands.
Its segmentation strategy has ensured better visibility in retail.
23
The branded category was at around 20 to 25 per cent (of the total luggage market)
two to three years ago. It has grown to 35 to 40 per cent now thanks to these
brands and the advent of competition into India.
VIP Industries is the market leader with 60 to 65 per cent share across all the
brands in the organised segment. Competing brands are available only in certain
pockets and price points and can’t compete with Aristocrat and Alfa - the two are
at value price points where brands cannot afford to compete with us. Another
strength that gives high market share is our distribution - which is huge.
24
25
CHAPTER 3:
RESEARCH
METHODOLOGY
26
RESEARCH OBJECTIVE OF STUDY
Started their journey from 1971, VIP has now become a leading seller in the
market selling over 60 million pieces of suitcase to people around the world with
a aim to make travelling easier.
Also, the motive of mine through this project is to identify the outlook of VIP
industries towards its customers and what new they are planning for them.
27
SAMPLE SIZE
The survey includes the opinion and views of 20 people at local level along with
statistical data collected from renowned sources.
SAMPLING METHOD
A sampling method is a procedure for selecting sample members from a
population.
28
SECONDARY DATA
VIP Industries has a global footprint with its products available not just across
India but also all over Middle East, the UK, USA, Germany, Spain, Italy and
select African and South East Asian countries.
Diversified product portfolio and strong sub brands: VIP’s has one of the
most diversified luggage offerings. The company’s sub brand like Aristocrat and
Alfa cater to the mass segments while the brands like Carlton, Caprese and V.I.P.
cater to the mid to premium segment. The company is also targeting the youth
through its trendy brand – Skybags which is one of the fastest growing category.
Strong brand visibility with wide distribution network: VIP has been able to
create strong sub brands by continuously spending 5-6% percentage of annual
revenue on advertising. It has also started using film star celebrities as brand
ambassador for creation of strong individual sub brands. Currently, VIP has
distribution network of over 10,000+ retail outlets points of sale which has
increased from 8000 points in two years.
Increasing travel and premiumization is driving the growth: Most players are
coming up with more youth-orientated products like lightweight and more
efficient backpacks and duffel bags. The Indian luggage industry is likely to
benefit as the people have become more demanding in term of style and comfort
for travel luggage. VIP with its mid to premium offerings is likely to see better
margins as compared to Safari which mainly offers in the economy segments.
29
30
LIMITATIONS OF THE STUDY
Some of the major limitation of the study is that it is based on secondary data,
lack of uniformity in the availability of resources and data.
While making the study I faced various challenges in relation to the material
available for the study. Many internet sites were providing rather irrelevant
information which were also very much apart from each other.
As a result, it became a very time-consuming process to gather data for this report.
It was very hard for me to find out minutes regarding the topic and assemble
them into my project.
Also due to time constraint I was able to interview only a small sample of people.
During my interaction with people I also found that maximum people are unaware
about the characteristics of a good luggage and are just purchasing them to keep
their possession in it.
But at last I was able to finish my report on time and with efficiency mentioning
each and every specific detail regarding the topic.
31
CHAPTER 4:
ANALYSIS AND
INTERPRETATION
32
QUESTIONNAIRE (taken from 20 persons)
WEEKLY
MONTHLY
QUATERLY
ANNUALLY
0 2 4 6 8 10 12
33
12
10
0
BUSINESS TOUR VACATION EDUCATIONAL OTHERS
NO OF TRAVELLERS
USERS (IN %)
45
VIP
SAMSONITE
8 7 AMERICAN TOURISTER
OTHER
40
34
How much would you like to spend on purchasing a suitcase?
0
less than 1000 1000-2000 2000-4000 4000+
35
compartmentalisation
gps tracker
extra space
0 1 2 3 4 5 6 7 8
no of people
Are you using VIP bags? If yes how much satisfied are you with them?
Yes( ) / no( ) because
{Out of 20 only 9 people uses VIP bags.}
a) Highly satisfied 5
b) Least satisfied -3
c) Moderately satisfied -1
36
Firstly, after analysing the response of public to the questionnaire it has been
concluded that out of the selected group of people majority of people travel for
the purpose of vacation on annually basis.
The average weight they use to carry is around 6 to 7 kilograms per trip.
Through the data collected, it was found that AMERICAN TOURISTER bags
are close competitors to VIP bags and majority of people use AMERICAN
TOURISTER.
It was also founded that the normal middle-class family generally purchase
suitcase ranging from 2000-4000 approx.
37
CHAPTER 5:
FINDINGS AND
SUGGESTION
38
FINDINGS
Market research shows that an average Indian family pulls out the suitcases
merely for a outstation travel a few times a year.
VIP has a wide range of bags and suitcases starting from Rs 300 to Rs 6000 per piece.
It has been discovered that the reason for their success is the uniqueness and
ingeniousness of their marketing strategies.
Brands such as ARISTOCRAT and ALFA are introduced at lower prices
targeting mass segments of the society.
Also, VIP has a diversified product portfolio with various sub-brands
capturing maximum of domestic market along with good amount of global
market.
Also, it has been observed that youth of today’s generation loves to travel a
lot. By looking this VIP has launched a brand “SKYBAGS” which offers
style and comfort to its users thus increasing its demand in the market.
By appointing celebs such as Rohit Sharma, Alia Bhatt, Varun Dhawan as
their brand ambassadors the organisation has been able to create a good
image of them among the youths as these celebs are the youth icons and are
widely recognised and loved by the people at the large level.
By introducing CAPRESE in 2012 the brand targeted towards fashion
conscious urban women who wants to carry their own style and want to be
different from others.
Being an Indian based company it well understands the need of its customers
and always putting their efforts to fulfil them.
39
FAVOURABLE FACTORS FOR VIP:
Steady economic growth propelled the travel sectors.
Convenience and variety gained prime importance for soft luggage.
Care for aesthetics increased importance for soft luggage.
People no longer used same suitcase for all occasions.
Hence, luggage has transformed from merely a functional product to a
fashion or life style product.
SUGGESTIONS
The brand is becoming generic to the category and local brands eating into the
share of the company. So, it becomes necessary & important to the company for making
changes & variations in its brand.
VIP has been very dominant in the mid-segment but it had no presence in the
luxury segment. It needs to launch its product in the luxury segment also.
It concentrated only on hard luggage but nowadays it has become the need to
diversify the product.
40
CHAPTER 6 :
CONCLUSION
41
CONCLUSION
By keeping in pace with the change in need of the people with highly
innovative work and consistency in quality VIP will be maintaining its
outstanding familiarity.
42
BIBLIOGRAPHY
Book:
; CR KOTHARI, RESEARCH METHODOLOGY -- METHODS AND
TECHNIQUES, NEW AGE INTERNATIONAL PUBLISHERS.
Website:
www.google.com
43
ANNEXURE
QUESTIONNAIRE
NAME :
AGE :
GENDER :
44
Which brand do you prefer the most?
d) VIP
e) Samsonite
f) American tourister
g) Any other:
Are you using VIP bags? If yes how much satisfied are you with them?
45