Maggie-converted Final.pdf

AMITY UNIVERSITY JHARKHAND, RANCHI .

A Term paper Report On Consumers buying behaviour towards Maggi and other noodle brand SUBMITTED BY: SAQUIB SAJJAD A35101918013 M.B.A. (2018-20) Under the Guidance of Mrs. Harmeet Kaur. PROFESSOR AMITY UNIVERSITY, JHARKHAND

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A project report on consumer buying behaviour towards

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BONAFIDE CERTIFICATE

Certified that seminar work entitled “CONSUMER BUYING BHAVIOUR TOWARDS MAGGI AND OTHER NOODLE BRAND ” is a bonafide work carried out in the First semester by “SAQUIB SAJJAD” Enrollment No. – A35101918013 . In partial fulfilment for the award of Master of Business Administration From AMITY SCHOOL OF BUSINESS campus of AMITY UNIVERSITY, JHARKHAND during the academic year 2018-2019. Who carried out the Term paper work under the guidance and no part of this work has been submitted earlier for the award of any degree.

---------------------------------------Signature of the Supervisor Mrs. Harmeet Kaur Asst. professor Amity University Jharkhand Place - Ranchi Date - …/12/2018

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Declaration by Student

I the undersigned solemnly declare that the project report CONSUMER BUYING BEHAVIOUR TOWARDS MAGGI AND OTHER NOODLE BRANDS” is based on my own work carried out during the course of our study under the supervision of Mrs. Harmeet Kaur. I assert the statements made and conclusions drawn are an outcome of my research work. I further certify that:-

a) The work contained in the report is original and has been done by me under the general supervision of my supervisor. b) The work has not been submitted to any other Institution for any other degree/certificate in this university or any other University of India or abroad. c) We have followed the guidelines provided by the university in writing the report. d) Whenever we have used materials (data, theoretical analysis, and text) from other sources, we have given due credit to them in the text of the report and giving their details in the references.

……………………………………

Signature SAQUIB SAJJAD A35101918013 Place - Ranchi Date -…./12/2018

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ACKNOWLEDGEMENT I have taken efforts in this Seminar report. However, it would not have been possible without the kind support and help of many individuals and organizations. I would like to extend my sincere thanks to all of them. I am highly indebted to Mrs. Harmeet Kaur for their guidance and constant supervision as well as for providing necessary information regarding the project & also for their support in completing the project. I would like to express my gratitude towards my parents & member of “AMITY BUSINESS SCHOOL” campus of “AMITY UNIVERSITY, JHARKHAND” for their kind co-operation and encouragement which help me in completion of this project. I would like to express my special gratitude and thanks to my all faculties for giving me such attention and time. My thanks and appreciations also go to my colleague in developing the project and people who have willingly helped me out with their abilities.

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INDEX SERIAL NO

NAME

PAGE NO

1

Executive summery

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2 3

4

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Introduction

Strategic analysis of Maggi (Company Profile) RESEARCH METHODOLOGY

Survey Results

8-14

15-35

36-37

38-45

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SUGGESTIONS AND CONCLUSION

46-47

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Bibliography

49-50

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Annexure

51-52

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EXECUTIVE SUMMERY The report entitled ―A study of consumer buying behavior towards Maggi and other noodles deals with the study of Maggi brand that was launched in India in the year 1983, by Nestle India Limited. This research paper tries to find consumer buying behavior towards these products. This research paper also finds the reach of Maggi. It 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 inf luences that may affect the consumer buying decision process.

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INTRODUCTION CONSUMER BUYING BEHAVIOUR : All marketing starts with the consumer. So consumer is a very important person to a marketer. Consumer decides what to purchase, for whom to purchase, why to purchase, from where to purchase, and how much to purchase. In order to become a successful marketer, he must know the liking or disliking of the customers. He must also know the time and the quantity of goods and services, a consumer may purchase, so that he may store the goods or provide the services according to the likings of the consumers. Gone are the days when the concept of market was let the 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 behavior 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 behavior suggest how individual, groups and organization select, buy, use and dispose of goods, services, ideas or experience to satisfy their needs and wants. It also clues for improving or introducing products or services, setting price, devising channels etc. Since liberalization 100% FDI is allowed in India. This has attracted foreign companies to penetrate the Indian market. The marketers always look for emergent trends that suggest new. As a consumer we are all unique and this uniqueness is reflected in the consumption pattern and process purchase. The study of consumer behaviour provides us with reasons why consumers differ from one another in buying using products and services. We receive stimuli from the environment and the specifics of the marketing strategies of different products and services, and responds to these stimuli in terms

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of either buying or not buying product. In between the stage of receiving the stimuli and responding to it, the consumer goes through the process of making his decision. CONSUMER BEHAVIOUR Consumer behaviour is the study of how people buy, what they buy, when they buy and why they buy. It is a subcategory of marketing that blends elements from psychology, sociology, socio psychology, anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies

characteristics

of

individual

consumers

such

as

demographics,

psychographics, and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general. Consumption is the ―process of production, acquisition, utilization and destruction of goods, services, experiences or places‖ Understanding Demographics 1) Youth – 60% of India‘s teens stay in rural area. 2) Women – Only 23 % house wives in urban areas have jobs outside their homes

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STAGES OF CONSUMER BUYNG PROCESS

Six Stages to the Consumer Buying Decision Process (For complex decisions). Actual purchasing is only one stage of the process. Not all decision processes lead to a purchase. All consumer decisions do not always include all 6 stages, determined by the degree of complexity...discussed next. The 6 stages are: 1. Problem Recognition: The buying process starts with need or problem recognition—the buyer recognizes a problem or need. The buyer senses a difference

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between his or her actual state and some desired state. The need can be triggered by internal stimuli when one of the person's normal 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

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that is of consumers, by consumers, and for consumers. Having loyal, satisfied customers that brag about doing business with you is the dream of every business owner. Not only are satisfied customers repeating buyers, but they are also walking, talking billboards for your business. Second, the costs are low. Keeping in touch with satisfied customers and turning them into word-of-mouth advocates costs the business relatively little. A successful information search leaves a buyer with possible alternatives, the evoked set. Hungry, want to go out and eat, evoked set is Chinese food Indian food Burger king

3. Evaluation of Alternatives--need to establish criteria for evaluation, features the buyer wants or does not want. Rank/weight alternatives or resume search. May decide that you want to eat something spicy, Indian gets highest rank etc. If not satisfied with your choices then return to the search phase. Can you think of another restaurant? Look in the yellow pages etc. Information from different sources may be treated differently. Marketers try to influence by "framing" alternatives. 4. Purchase 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

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6.Post-Purchase Evaluation--outcome: The marketer's job does not end when the product is bought. After purchasing the product, the consumer will be satisfied or dissatisfied and will engage in post purchase behavior of interest to the marketer. What determines whether the buyer is satisfied or dissatisfied with a purchase? The answer lies in the relationship between the consumer's expectations and the product's perceived performance. If the product falls short of expectations, the consumer is disappointed; if it meets expectations, the consumer is satisfied; if it exceeds expectations, the consumer is delighted. The larger the gap between expectations and performance, the greater the consumer's dissatisfaction. This suggests that sellers should make product claims that faithfully represent the product's performance so that buyers are satisfied. Some sellers might even understate performance levels to boost consumer satisfaction with the product. Almost all major purchases result in cognitive dissonance, or discomfort caused by post purchase conflict. After the purchase, consumers are satisfied with the benefits of the chosen brand and are glad to avoid the drawbacks of the brands not bought. However, every purchase involves compromise. Consumers feel uneasy about acquiring the drawbacks of the chosen brand and about losing the benefits of the brands not purchased. Thus, consumers feel at least some postpurchase dissonance for every purchase. Why is it so important to satisfy the customer? Such satisfaction is important because a company's sales come from two basic 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

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gripes to 11 people. In fact, one study showed that 13 percent of the people who had a problem with an organization complained about the company to more than 20 people. Clearly, bad word of mouth travels farther and faster than good word of mouth and can quickly damage consumer attitudes about a company and its products. Therefore, a company would be wise to measure customer satisfaction regularly. It cannot simply rely on dissatisfied customers to volunteer their complaints when they are dissatisfied. Some 96 percent of unhappy customers never tell the company about their problem. Companies should set up systems that encourage customers to complain. In this way, the company can learn how well it is doing and how it can improve

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MAGGI

INTRODUCTION Ever since its launch in India in 1983, this brand has become synonymous with noodles. The bright red and yellow colours of the packet with the brilliant blue ―2minute Noodles‖ printed on it has found a place on every kitchen. Over the years, Maggi has grown as a brand and positioned itself as a ―Fast to cook! Good to Eat! ―Food product. The history of this brand traces back to the 19th century when industrial revolution in Switzerland created factory jobs for women, who were therefore left with very little time to prepare meals. Due to this growing problem Swiss Public Welfare Society asked a miller named Julius Maggi to create a vegetable food product that would be quick to prepare and easy to digest. Julius, the son of an Italian immigrant came up with a formula to bring added taste to meals in 1863. Soon after he was commissioned by the Swiss Public Welfare Society, he came up with two instant pea soups & a bean soup- the first launch of Maggi brand of instant foods in 1882-83.Towards the end of the century, Maggi company was producing not just powdered soups, but bouillon cubes, sauces and other flavourings. However in India (the largest consumer of Maggi noodles in the world!) it was launched in 1980 by Nestle group of companies. Maggie had merged with Nestle family in 1947. When launched it had to face a stiff competition from the ready to eat snack segments like biscuits, wafers etc. Also it had other competitor the so called home made snacks which are till today considered healthy and hygienic. Hence to capture the market it was positioned as a hygienic homemade snack, a smart move.

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But still this 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.

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COMPANY PROFILE NESTLE’ Nestle India

Nestle‘ India is a subsidiary of Nestle‘ S.A. of Switzerland. The company insists on honesty, integrity and fairness in all aspects of its business and expects the same in its relationships. Nestle India- Presence across India Beginning with its first investment in Moga in 1961, 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

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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

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used in the regular Maggi noodles. This move helps the brand in India as suburban mothers, who feed the noodles to children as an afterschool snack, are the primary customers of the brand. Recently, a line of rice noodles and whole wheat with pulses, carrots, beans, and onions has also been introduced in India. In fact, "Maggi" has become a well-known brand for instant noodles in India and Malaysia. 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.

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MARKET DEMOGRAPHICS Demographics: Region: urban, semi-urban, rural (recent) Occupation: Housewives, working professionals, self-employed Sex: Unisex Income: 1, 20,000 p.a. upwards Social class: Middle and upwards Family life cycle: Young, single, married with children. Behavioural: Occasions: Regular, Everyday user-urban, rural-depends on the temporal aspects of the 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

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ranging from food items to beverages to chocolates. As consumers, children know exactly what they want and do not experiment too much with flavour or colour. Children rule Indian families consider children to precious gifts of God, and parents in all income groups do all they can for their offspring. Indian parents are still not completely comfortable with paid baby sitters or day care help and use the larger extended family or friends to help with care and supervision of children. Rush for pre-school admissions Throughout urban India, parents of nursery age children are looking to send them in the best private school they can afford. Pre-schools for toddlers in the 2-3 age group are mushrooming all over the country, as anxious parents recognise the perceived benefits these can bring. TEENAGERS The 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.

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In fact, the top six expense items for teenagers seem to be impulse foods: 17% of the total pocket money spent on ice creams, 12% on chocolates and 10% each on soft drinks and fast food according to a newspaper report in the ―The Times of India‖ . A key role to play in decision making With increased awareness through television and advertising, teenagers are an important influence on family decision-making in urban India. They have also mastered the art of nagging their parents into making purchases of gadgets or products that they want. Among the areas where they make their influence felt are the purchase of such items as a newly launched chocolate bar, instant noodles and breakfast cereal. With a penchant for hi-tech and an ease with new technology far superior to their parents, these teenagers are more familiar with operating mobile phones, the TV remote, DVD player and computer programmes, as well as the product features. Cricket-crazy boys Cricket is the obsession and passion of boy teenagers in India. This interest cuts across income and socio-economic groups. Low income boys will play on the streets

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with makeshift bats and stumps, middle-income children can be seen playing in gardens and at school, while boys from more well-to-do families go and play in organised coaching camps. With their education demanding less time at this age, parents are generally quite happy to see their boys spending so much time on cricket STUDYING AGE A rise in the number of colleges and institutions of higher learning both government owned and privately financed has enabled a larger number of youth to graduate from their portals. This population grew since 2000 but is set to stagnate in the forecast period with couples actually postponing the child bearing decision and some even rejecting the idea of having one at all. This age group has taken up to snacking as a way of life as they keep missing regular meals due to erratic schedules. They have longer waking hours and due to this the traditional three meals does not suffice with the need for filling snacks. Rising financial freedom With growing aspirations on the academic front and shrinking global boundaries this age group has an unquenchable thirst for information whether through their PCs or cell phones. With a rise in employment opportunities in the Business Process Outsourcing (BPO) sector, more and more consumers in this age group are juggling jobs along with their studies for the sake of the financial freedom it gives them. Summer jobs Until the 1990s, summer vacations were a time to relax, read and catch up with friends. This is no longer the case. Now, teenagers either find a summer job, or undertake activities such as a trek in the mountains, river rafting or rock climbing. Summer jobs may cover a range of activities from delivering newspapers to working in a restaurant

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YOUNG ADULTS Young adults (15-29 years old) represent the largest spending segment in the country. Youngsters are part of a middle-class boom in India. Of the US$30 billion spent by Indians on themselves in 2003, young adults spent close to US$10.5 billion with their spending levels. Need for convenience Many single working professionals have to live away rising 12% each year at twice the pace of the 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

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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,

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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.

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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%).

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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.

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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 and Shahi Pulao)



Maggi Cuppa mania (Masala yo, Chilli chow yo)

2. Sauces

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

Teekha masala



Tomoto chatpat



Imli khata mitha



Tomato ketchup



Hot and sweet



Tomato pudina



Ginger, Garlic & Coriander

Chow



Maggi Oriental Chilli Garlic



Ginger, Garlic & Coriander

3. Maggi Pichko

4. Soups Healthy 

Chef Style - Cream Mushroom - Sweet Sour Tomato Noodles - Tangy Tomato Vegetables



Home Style - Creamy Chicken - Mixed Vegetable - Rich Tomato



Chinese Style - Chinese Hot Sour Chicken - Chinese Sweet Corn Chicken - Chinese Sweet Corn Vegetables - Chinese Hot & Sour Vegetables

5. Maggi soup sanjivni



Amla



Badam



Spinach



Dal



Tomato

6. Maggi bhuna masala

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

Bhuna masala for gravy dishes



Bhuna masala for vegetable dal

7. Maggi magic cubes

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

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.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.

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Michael Porter’s Five Forces Model New entrants 1. Top Ramen 2. Horlicks foodles 3. Sunfeast Pasta

Suppliers

Industrial Rivalry

1. Distributers

1. Top Ramen

2. Raw material

2. Horlicks foodles 3. Chowmeen etc.

3. Packaging

Substitutes 1. Fast Food 2. Soups 3. Pasta

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Buyers 1. Customer‘s mind set 2. Brand Image

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

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

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>Rapid economic growth and rising disposable incomes make a strong case for a premium brand like Maggi. >Upward trend of convenience food consumption. >Huge untapped serviceable upward class rural base Threats >Competition is increasing with established competitors in other segments are foraying into the noodles segment seeing the capacity of growth. >Top ramen the prime competitor has come up with new exciting instant noodle >Offerings like cup noodles and mug noodles which threaten to eat into 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 Horlicks foodles.

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RESEARCH METHODOLOGY STAGES IN RESEARCH :

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Problem Defination To identify the consumer characteristics of the fast food industry. To understand the influence on purchasing consumers mind set. To know about customer acceptance of the product. To see the perception of consumers between any two fast food region of Vadodara. To understand why customer buy a particular product. To help the company to know what consumer want in the product. To understand Brand Imagery, Brand Quality perceived by customers, Brand credibility, consideration, superiority and feelings. RESEARCH DESIGN: Research Design: The research will be carried out in the form of a survey which will be done in Ranchi. 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

Ranchi

Age Group

10 – 25

25 - 35

35 – 45

Number of Respondents

50

50

50

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

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

Many people eat now days ready to eat food. Here everyone is familiar with ready to eat food and consumed. 2. Which of the following food item would you consume?

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Most of people eat Maggi such as (92.3% ). pasta has gained the market share of Maggi. Better advertisement campaign of Sunfeast pasta has been created awareness of pasta. But still Maggi has more demand than the Sunfeast pasta.

3. What is the frequency of consumption?

Chart Title 70

62

60 50 40

33 27

30

18

20 10 0 Everday

more then a week

once amonth

No 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?

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Brand Associations:

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

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

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6. Would you like to try Horlicks Foodles?

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. Horlicks 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 44

45 40 35

31

30 25

23

20

17

15

12

13

Radio

Family

10 5 0 Friends

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Newspaper

Hording T.V ads

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. Horlicks 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 Horlicks 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.

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

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

43

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

60 51 50 40

38 28

30

Series1

23 20 10 0 . Maggi

Horlicks Foodles Top Ramen

Sunfeast Pasta

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

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12. Do you keep switching on products?

100

92

80 60

48

40 20 0 Yes

13. Demographic Information Age: Gender: M-------Education:

F---------

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

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

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

Children‘s:

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

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No

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

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

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

Positioning: Market Positioning is the act of designing the 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.

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LIMITATIONS

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

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Bibliography

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

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https://www.pdfcoke.com/doc/165972662/Maggi-noodles-project-on-Research-Methodology https://www.marketing91.com/swot-analysis-of-maggi/

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

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F---

Education:

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

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

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

Children‘s:

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

52