A project report on consumer buying

Behavior towards “Noodles”

Submitted in Partial Fulfillment for the Award of the

Degree of Bachelor in Business Administration 2018-2019

Under the Guidance of Submitted By

Chandan Pal Singh Chhavi Sharma
Head Of Department Enrolment no.:-A-17254453

MANORAMA INSTITUTE OF MANAGEMENT AND TECHNOLGY,

LADAMDA, FATEHPUR SIKRI ROAD, AGRA
Affiliated to Dr.Bhim Rao Ambedkar University,AgraPaliwal park,Agra

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 ACKNOWLEDGEMENT

With an Overwhelming sense of gratitude, I acknowledge that the valuable

guidance and consistent encouragement extended to me by our knowledgeable
faculty members with whose guidance, I’m able to accomplish this endeavor.
Their technical acumen and years of experience has provided me with crucial
inputs at a critical stage.

I am specially thankful and grateful to my project guide Mr. Chandan Pal

Singh who motivated and helpful me in completing my project.

Chhavi Sharma
 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.
 INDEX
SERIAL NO NAME PAGE NO

1 Executive summery 5

2 6
Introduction

3 32
Strategic analysis of Maggi and Horlicks
foodles (Company Profile)
4 62
RESEARCH METHODOLOGY

5 64
Survey Results

6 SUGGESTIONS AND CONCLUSION 76

7 Bibliography 77
 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.
 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 buyer‘s beware or when the market was mainly the seller‘s
market. Now the whole concept of consumer‘s 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
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 India‘s teens stay in rural area.

2) Women – Only 23 % house wives in urban areas have jobs outside their homes
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 recognition—the
buyer recognizes a problem or need. The buyer senses a difference
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 needs—hunger, thirst, sex—rises 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
sources—those 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 others—friends, relatives, acquaintances, professionals—for

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
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 decision—In 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
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 post purchase 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 groups—new 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 consumers—to 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
customers—they 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
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 behavior are determined by:

Level of Involvement in purchase decision. Importance and intensity of interest in a product

in a particular situation. Buyer‘s 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 behavior are:

Routine Response/Programmed Behavior--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.
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 (after- sale
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 category—they 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-attitude- behavior
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
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 low- involvement
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. Nestlé 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
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
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.
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
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 leaders—
people 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 person‘s 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 individual‘s 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.
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
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.
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.
Personal factors

Ability and Knowledge—

Need to understand individual‘s 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--
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 consumer‘s 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
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 dimensions—activities (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
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 popular—the theories of Sigmund Freud and Abraham
Maslow—have 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.
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 attention—the tendency for people to screen out most
of the information to which they are exposed—means 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

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.
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.
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 ―2- minute 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.
But still this didn‘t 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

Nestlé‘s 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 India‘s top line. Being the pioneer in the noodles market
has given it a first mover‘s advantage over other brands. Maggi has regularly come up with
new flavours and has recently launched two variants- Vegetable Atta and Dal Atta noodles,
catering to the increasing demand for healthy snacks.
 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, Nestlé‘s regular and substantial
investments established that it was here to stay. In 1967, Nestlé 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, Nestlé commissioned two factories in Goa at
Ponda and Bicholim respectively. Nestlé India is now putting up the 7th factory at Pant
Nagar in Uttaranchal.

Nestle’ Story
Nestlé was founded in 1867 on the shores of Lake Geneva in Vevey, Switzerland and its
first product was ―Farine Lactée Nestlé‖, an infant cereal specially formulated by Henri
Nestlé to provide and improve infant nutrition. From its first historic merger
with the Anglo-Swiss Condensed Milk Company in 1905, Nestlé has grown to become the
world‘s largest and most diversified food Company, and is about twice the size of its nearest
competitor in the food and beverage sector.
Nestlé‘s trademark of birds in a nest, derived from Henri Nestlé‘s 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 Nestlé‘s corporate identity but serves to define the
Company‘s products, responsibilities, business practices, ethics and goals. In 2004, Nestlé
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 Company‘s 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. Nestlé‘s activities contribute to and nurture the sustainable
economic development of people, communities and nations. Above all, Nestlé 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 Nestlé. 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 Nestlé 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'. Whole- wheat 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
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.
Nestlé 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.
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

consumer‘s 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 marketer‘s delight. With ―pester power‖ children play a
significant role in decision making and purchase choices of just about anything
ranging from food items to beverages to chocolates. 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 teenager‘s 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.
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
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
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 economy‘s 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 children‘s 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
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.
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 India‘s elderly. It is also now an option for the middle- income 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
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

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, Curry

and Tomato)
 Maggi Dal Atta Noodles ( Sambhar taste)
 Vegetable Atta Maggi Noodles
 Maggi Rice Noodles (Lemon Masala, Chilly Chow
and Shahi Pulao)
 Maggi Cuppa mania (Masala yo, Chilli chow yo)
2. Sauces

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

 Maggi Oriental Chilli Garlic

 Ginger, Garlic & Coriander
3. Maggi Pichko

4. Soups Healthy

 Chef Style
- Cream Mushroom
- Sweet Sour Tomato Noodles
- Tangy Tomato Vegetables
 Home Style
- Creamy Chicken
- Mixed Vegetable
- Rich Tomato
 Chinese Style
- Chinese Hot Sour Chicken
- Chinese Sweet Corn Chicken
- Chinese Sweet Corn Vegetables
- Chinese Hot & Sour Vegetables

5. Maggi soup sanjivni

 Amla
 Badam
 Spinach
 Dal
 Tomato

6. Maggi bhuna masala

45 | P a g e
  Bhuna masala for gravy dishes
 Bhuna masala for vegetable dal

7. Maggi magic cubes

 Chicken
 Vegetarian masala

FOUR P’S 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 aren‘t 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.

46 | P a g e
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 Porter’s Five Forces Model

New entrants

Top Ramen

Horliks foodles

Sunfeast Pasta

Suppliers
Industrial Rivalry Buyers
Distributers 1. Customer‘s mind set
Top Ramen
Raw material
Horliks foodles
Packaging 3. Chowmeen etc. 2. Brand Image

Substitutes

Fast Food

Soups

Pasta
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 .
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 Maggi‘s 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.

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

Foodles

GlaxoSmithKline‘s (GSK) newest product Foodles has hit the markets about a month back
in the instant noodle category. GSK, which is world‘s fourth largest pharmaceutical,
research-based company with a wide portfolio[1] of pharmaceutical products covering anti-
infectives, central nervous system, respiratory, gastro- intestinal/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 Nestle‘s 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
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 consumer‘s 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 Maggi‘s 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

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.

Women‗s 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.

variant segment communication
medium
usededium

People who ad highlighted-

are
Junior Horlicks (1995) conscious The key message
about their is need
kids creation for
nutrition nutrition in
and better preschool
health. children.
Pre The handwritten
schoolers font style
created a sense of
innocence.
A-Z nutrition
along with
DHA for brain
development

Horlicks Ninja (1997) Children Organized

between 7- nationwide events
15 years 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
Mother‘s Horlicks (1997) Pregnant Ads promoted :-
women All round
Breast development of
feeding the baby.
women Improvement in
the birth
weight of the
baby.

Improvement in
 the quality
and quantity of
breast milk
during lactation

Horlicks Biscuits (1992) Parents Solid‘

Children Nourishment
containing 100%
RDA of
calcium.
Available in
standard &
elaichi flavour to
highlight
‗great taste‘ &
‗nourishment‘
factor

Horlicks Nutribar (2009) Children Multi cereal bar

Adults with vital
nutrients, fibre
and honey.
Best suited for
your apetite
anywhere anytime

Horlicks Foodles (2010) Growing Whole wheat and

children nutrients.
Rich in Vitamin
A, Vitamin
C and calcium.
Health maker with
power
vitamins
MARKET SUMMARY
FOUR P’S 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 company‘s 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
Price:
HORLICKS
Flavors (Rs)
Elaichi Chocolate Honey Buzz Vanilla
Weight(gm) Jar Refill Pack Jar Refill Pack Jar Jar
200 57 - 57 - - -
500 108 103 108 103 108 108
1000 199 189 - - - -
HORLICKS JUNIOR
Weight(gm) Jar Refill Pack
200 58 -
500 114 105

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 browns–have 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 ad- spend (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
million students are expected to take part. Unlike its other drink (the Rs 170- crore
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
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.
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

 Michel Porters model for Horliks foodles

New entrants

Top Ramen

Sunfeast Pasta

Suppliers Industrial Rivalry Buyers

1. Distributers 1. Maggi 1. Customer‘s mind

set
2. Raw material 2.Top Ramen
2. Brand Image
3. Packaging 3. Chowmeen etc.

Substitutes

Fast Food

Soups

Pasta
 RESEARCH METHODOLOGY

STAGES IN RESEARCH :
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 Sadar Agra.
 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 Sadar
Agra.
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 of 150
respondents
Age-group 10 – 45
Survey Locations Pune

Age Group 10 - 25 25 - 35 35 – 45
Number of Respondents 50 50 50
 DATA COLLECTION PLAN

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

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

Chart Title
120
100
100
80
60
40 45
20
0

YesNo

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

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 62
60
50

40 33
30 27
20
18
10
0

Everdaymore then a weekonce amonthNo particular pattern

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
Maggi , 61
60
50
40

Top Ramen, 33 Horliks Foodles

30 , 26Sunfeast pasta, 20

20
10
0

Maggi Top RamHoernliks Foodles Sunfeast pasta

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 company‘s 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
84
80
60 56

40
20
0

YES NO

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..
6. Would you like to try Horlicks Foodles?

90 83
80
70
60
57
50
40
30
20
10
0

YesNo

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 44
40

35 31
30
25
20 23
15
17
10
5 12 13
0

FriendsNewspaperHording T.V adsRadioFamily

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
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 child‘s 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 98 99
87 89 86
80 78

56
60 45
40
20
0

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

20

0
10. According to you which age group prefer Maggi most?

70 63
60
50
40

32
30 26
19
20
10
0

4– 12 13– 26 27- 40 41– above

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

70

60 58

50
41
40

30 25

20 16

10

0
4– 12 13– 26 27- 40 41– above
12 .Which of the following do you think healthier product?

60
51
50

40 38

30 28
23 Series1

20

10

0
. Maggi Horliks FoodlesTop RamenSunfeast Pasta

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

60

50 48
45

40
34

30

20

10

0
Family Individual DecisionPromotional
/advertisement instigated decision
14. Do you keep switching on products?

100 92

80

60 48

40

20

0
Yes No

15. Demographic Information

Age:

Gender: M-------- F---------

Education: --------------------------

Occupation: ----------------------------

Income: -----------------------------

Children‘s: -----------------------------
 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 company‘s 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 Maggi‘s 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 8–9% to Nestle
India‘s 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
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 company‘s 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.
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 company‘s 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.
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.
 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/