1

A comparative study on Maggi and other noodles

at Gondia

2

Index

1. Introduction

2. Company Profile

3. Research Methodology

3.1 Objectives

3.2 Hypothesis

3.3 Limitation

4. Data Collection

4.1. Primary data

4.2 Secondary data

5. Data Analysis & Interpretation

6. Conclusion & Findings

6.1 Conclusion

6.2 Findings

6.3 Suggestion

7. Bibliography

8. Appendix

3

INTRODUCTION

4

CHAPTER 1

INTRODUCTION

Comparative research is a research methodology in the social sciences that

aims to make comparisons across different countries or cultures. A major problem in

comparative research is that the data sets in different countries may not use the same

categories, or define categories differently (for example by using different definitions

of poverty).

Development of the tradition

When the practice of comparative research began is a matter of debate. Karl

Deutsch has suggested we have been using this form of investigation for over 2,000

years. Comparing things is essential to basic scientific and philosophic inquiry, which

has been done for a long time. Most authors are more conservative in their estimate of

how long comparative research has been with us. It is largely an empty debate over

the definition of the tradition with those questioning whether comparing things counts

as comparative research.

Textbooks on this form of study were beginning to appear by the 1880s, but its rise to

extreme popularity began after World War II. There are numerous reasons that

comparative research has come to take a place of honour in the toolbox of the social

scientist. Globalization has been a major factor, increasing the desire and possibility

for educational exchanges and intellectual curiosity about other cultures.Information

technology has enabled greater production of quantitative data for comparison, and

international communications technology has facilitated this information to be easily

spread.

Comparative research defined

Comparative research, simply put, is the act of comparing two or more things with a

view to discovering something about one or all of the things being compared. This

technique often utilizes multiple disciplines in one study. When it comes to method,

http://en.wikipedia.org/wiki/Social_sciencehttp://en.wikipedia.org/wiki/Countryhttp://en.wikipedia.org/wiki/Culturehttp://en.wikipedia.org/wiki/Povertyhttp://en.wikipedia.org/wiki/Karl_Deutschhttp://en.wikipedia.org/wiki/Karl_Deutschhttp://en.wikipedia.org/wiki/World_War_IIhttp://en.wikipedia.org/wiki/Globalizationhttp://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Information_technology

5

the majority agreement is that there is no methodology peculiar to comparative

research. The multidisciplinary approach is good for the flexibility it offers, yet

comparative programs do have a case to answer against the call that their research

lacks a "seamless whole."

There are certainly methods that are far more common than others in comparative

studies, however. Quantitative analysis is much more frequently pursued than

qualitative, and this is seen by the majority of comparative studies which use

quantitative data. The general method of comparing things is the same for

comparative research as it is in our everyday practice of comparison. Like cases are

treated alike, and different cases are treated differently; the extent of difference

determines how differently cases are to be treated. If one is able to sufficiently

distinguish two carry the research conclusions will not be very helpful.

Secondary analysis of quantitative data is relatively widespread in comparative

research, undoubtedly in part because of the cost of obtaining primary data for such

large things as a country's policy environment. This study is generally aggregate data

analysis. Comparing large quantities of data (especially government sourced) is

prevalent.[1] A typical method of comparing welfare states is to take balance of their

levels of spending on social welfare.

In line with how a lot of theorizing has gone in the last century, comparative research

does not tend to investigate "grand theories," such as Marxism. It instead occupies

itself with middle-range theories that do not purport to describe our social system in

its entirety, but a subset of it. A good example of this is the common research program

that looks for differences between two or more social systems, then looks at these

differences in relation to some other variable coexisting in those societies to see if it is

related. The classic case of this is Esping-Andersen's research on social welfare

systems. He noticed there was a difference in types of social welfare systems, and

compared them based on their level of decommodification of social welfare goods. He

found that he was able to class welfare states into three types, based on their level

http://en.wikipedia.org/wiki/Comparative_research#cite_note-Deutsch_1987-1http://en.wikipedia.org/wiki/Marxism

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of decommodification. He further theorized from this that decommodification was

based on a combination of class coalitions and mobilization, and regime legacy. Here,

Esping-Andersen is using comparative research: he takes many western countries and

compares their level of decommodification, then develops a theory of the divergence

based on his findings.

Comparative research can take many forms. Two key factors are space and time.

Spatially, cross-national comparisons are by far the most common, although

comparisons within countries, contrasting different areas, cultures or governments

also subsist and are very constructive, especially in a country like New Zealand,

where policy often changes depending on which race it pertains to. Recurrent

interregional studies include comparing similar or different countries or sets of

countries, comparing one's own country to others or to the whole world.

The historical comparative research involves comparing different time-frames. The

two main choices within this model are comparing two stages in time (either

snapshots or time-series), or just comparing the same thing over time, to see if a

policy's effects differ over a stretch of time.

When it comes to subject matter of comparative inquiries, many contend there is none

unique to it. This may indeed be true, but a brief perusal of comparative endeavours

reveals there are some topics more recurrent than others. Determining whether

socioeconomic or political factors are more important in explaining government action

is a familiar theme. In general, however, the only thing that is certain in comparative

research issues is the existence of differences to be analysed.

http://en.wikipedia.org/wiki/Decommodificationhttp://en.wikipedia.org/wiki/Historical_comparative_research

7

COMPANY PROFILE

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CHAPTER 2

INTRODUCTION TO NESTLE

Nestl S.A. is among the largest consumer packaged goods companies in the world,

founded and headquartered in Vevey, Switzerland. Nestl originated in a 1905 merger of the

Anglo-Swiss Milk Company, which was established in 1866 by brothers George Page and

Charles Page, and the Farine Lacte Henri Nestl Company, which was founded in 1866 by

Henri Nestl, whose name meant "Little Nest". The company grew significantly during the

First World War and following the Second World War, eventually expanding its offerings

beyond its early condensed milk and infant formula products. Today, the company operates

in 86 countries around the world and employs nearly 283,000 people.

HISTORY OF NESTLE

The company dates to 1867, when two separate Swiss enterprises were founded that would

later form the core of Nestl. In the succeeding decades the two competing enterprises

aggressively expanded their businesses throughout Europe and the United States.

In August of 1867 Charles A. and George Page, two American brothers from Lee County, IL,

established the Anglo-Swiss Condensed Milk Company in Cham. Their first British operation

was opened at Chippenham, Wiltshire in 1873.

In September 1867, in Vevey, Henri Nestl developed a milk-based baby food and soon

began marketing it. Henri Nestl retired in 1875, but the company, under new ownership,

retained his name as Farine Lacte Henri Nestl.

Henri Nestl.

http://en.wikipedia.org/wiki/Henri_Nestl%C3%A9http://en.wikipedia.org/wiki/File:Henry_Nestle.jpg

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In 1877 Anglo-Swiss added milk-based baby foods to its products, and in the following year

the Nestl company added condensed milk, so that the firms became direct and fierce rivals.

In 1905 the companies merged to become the Nestl and Anglo-Swiss Condensed Milk

Company, retaining that name until 1947, when the name Nestl Alimentana SA was taken as

a result of the acquisition of Fabrique de Produits Maggi SA (founded 1884) and its holding

company, Alimentana SA of Kempttal, Switzerland. Maggi was a major manufacturer of

soup mixes and related foodstuffs. The companys current name was adopted in 1977. By the

early 1900s, the company was operating factories in the United States, United Kingdom,

Germany and Spain. World War I created new demand for dairy products in the form of

government contracts; by the end of the war, Nestl's production had more than doubled.

After the war, government contracts dried up and consumers switched back to fresh milk.

However, Nestl's management responded quickly, streamlining operations and reducing

debt. The 1920s saw Nestl's first expansion into new products, with chocolate the company's

second most important activity.

Nestl's logo used until 1970s.

Nestl felt the effects of World War II immediately. Profits dropped from US$20 million in

1938 to US$6 million in 1939. Factories were established in developing countries,

particularly Latin America. Ironically, the war helped with the introduction of the company's

newest product, Nescaf, which was a staple drink of the US military. Nestl's production and

sales rose in the wartime economy.

The end of World War II was the beginning of a dynamic phase for Nestl. Growth

accelerated and companies were acquired. In 1947 came the merger with Maggi seasonings

and soups. Crosse & Blackwell followed in 1950, as did Findus (1963), Libby's (1971) and

Stouffer's (1973). Diversification came with a shareholding in L'Oral in 1974. In 1977,

Nestl made its second venture outside the food industry by acquiring Alcon Laboratories

Inc.

http://en.wikipedia.org/wiki/File:Nestle's_old_logo.png

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In 1984, Nestl's improved bottom line allowed the company to launch a new round of

acquisitions, notably American food giant Carnation and the British confectionery company

Rowntree Mackintosh in 1988, which brought the Willy Wonka Brand to Nestl.

The first half of the 1990s proved to be favorable for Nestl: trade barriers crumbled and

world markets developed into more or less integrated trading areas. Since 1996 there have

been acquisitions including San Pellegrino (1997), Spillers Petfoods (1998), and Ralston

Purina (2002). There were two major acquisitions in North America, both in 2002: in June,

Nestl merged its U.S. ice cream business into Dreyer's, and in August a US$2.6 billion

acquisition was announced of Chef America, the creator of Hot Pockets. In the same time

frame, Nestl came close to purchasing the iconic American company Hershey's, though the

deal fell through. Another recent purchase includes the Jenny Craig weight loss program for

US $ 600 million.

In December 2005 Nestl bought the Greek company Delta Ice Cream for 240 million. In

January 2006 it took full ownership of Dreyer's, thus becoming the world's biggest ice cream

maker with a 17.5% market share.

In November 2006, Nestl purchased the Medical Nutrition division of Novartis

Pharmaceutical for $2.5B, also acquiring in 2007 the milk flavoring product known as

Ovaltine. In April 2007 Nestl bought baby food manufacturer Gerber for $5.5 billion.

In December 2007 Nestl entered in a strategic partnership with a Belgian chocolate maker

Pierre Marcolini. Nestl agreed to sell its controlling stake in Alcon to Novartis on 4 January

2010. The sale forms part of a broader US $39.3 billion offer by Novartis to fully acquire the

worlds largest eye-care company.

PRODUCTS OF NESTLE

Nestl has 6,000 brands, with a wide range of products across a number of markets including

coffee (Nescaf), bottled water, other beverages (including Aero (chocolate) & Skinny Cow),

chocolate, ice cream, infant foods, performance and healthcare nutrition, seasonings, frozen

and refrigerated foods, confectionery and pet food.

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EARNINGS OF NESTLE

In 2009, consolidated sales were CHF 107.6 billion and net profit was CHF 10.43 billion.

Research and development investment was CHF 2.02 billion.

Sales by activity breakdown: 27% from drinks, 26% from dairy and food

products, 18% from ready-prepared dishes and ready-cooked dishes, 12% from

chocolate, 11% from pet products, 6% from pharmaceutical products and 2% from

baby milks.

Sales by geographic area breakdown: 32% from Europe, 31% from Americas

(26% from US), 16% from Asia, 21% from rest of the world.

JOINT VENTURES:

Nestl holds 26.4% of the shares of LOreal, the world's largest company in cosmetics and

beauty. The Laboratories Inneov is a joint venture in nutritional cosmetics between Nestl

and LOreal, and Galderma a joint venture in dermatology with LOreal. Others include

Cereal Partners Worldwide with General Mills, Beverage Partners Worldwide with Coca-

Cola, and Dairy Partners Americas with Fonterra.

12

INDUSTRY PROFILE

Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer packaged

goods. Items in this category include all consumables (other than groceries/pulses) people

buy at regular intervals. The most common in the list are toilet soaps, detergents, shampoos,

toothpaste, shaving products, shoe polish, packaged foodstuff, and household accessories and

extends to certain electronic goods. These items are meant for daily of frequent consumption

and have a high return.

The Indian FMCG sector with a market size of US$14.8 billion is the fourth largest sector in

the economy. The FMCG market is set to double from USD 14.7 billion in 2008-09 to USD

30 billion in 2012. FMCG sector will witness more than 60 per cent growth in rural and semi-

urban India by 2010. Indian consumer goods market is expected to reach $400 billion by

2010.Hair care, household care, male grooming, female hygiene, and the chocolates and

confectionery categories are estimated to be the fastest growing segments. At present, urban

India accounts for 66% of total FMCG consumption, with rural India accounting for the

remaining 34%. However, rural India accounts for more than 40% consumption in major

FMCG categories such as personal care, fabric care, and hot beverages. In urban areas, home

and personal care category, including skin care, household care and feminine hygiene, will

keep growing at relatively attractive rates. Within the foods segment, it is estimated that

processed foods, bakery, and dairy are long-term growth categories in both rural and urban

areas.The growing incline of rural and semi-urban folks for FMCG products will be mainly

responsible for the growth in this sector, as manufacturers will have to deepen their

concentration for higher sales volumes.

Major Players in this sector include Hindustan Unilever Ltd., ITC (Indian Tobacco

Company), Nestl India, GCMMF (AMUL), Dabur India, Asian Paints (India), Cadbury

India, Britannia Industries, Procter & Gamble Hygiene and Health Care, Marico Industries,

Nirma,Coca-Cola, Pepsi and others.As per the analysis by ASSOCHAM, Companies

Hindustan Unilever Ltd , Dabur India originates half of their sales from rural India. While

Colgate Palmolive India and Marico constitutes nearly 37% respectively, however Nestle

India Ltd and GSK Consumer drive 25 per cent of sales from rural India.

A rapid urbanization, increase in demands, presence of large number of young population, a

large number of opportunities is available in the FMCG sector. The Finance Minister has

13

proposed to introduce an integrated Goods and Service Tax by April 2010.This is an

exceptionally good move because the growth of consumption, production, and employment is

directly proportionate to reduction in indirect taxes which constitute no less than 35% of the

total cost of consumer products - the highest in Asia.. The bottom line is that Indian market is

changing rapidly and is showing unprecedented consumer business opportunity.

MAJOR COMPETITORS OF NESTLE MAGGI

Maggi instant noodles, foods major Nestle's flagship brand that has dominated the Indian

instant noodles market for nearly three decades, is losing market share on a monthly basis to

newer entrants such as GlaxoSmithKline's (GSK) Horlicks Foodles, Hindustan Unilever's

(HUL) Knorr Soupy noodles, Big Bazaar's Tasty Treat, Top Ramen and several other smaller

players, according to data by market research firm Nielsen.

The data shows that Maggi's share of instant noodles, on an all-India basis, across urban

markets, has slipped consistently between December '09 to July '10. While Maggi instant

noodles (minus vermicelli) had a 90.7% share in December '09, the share dropped to 86.5%

in July '10 on an all-India basis.

A regional split of the data shows that Maggi's instant noodles' value market share has fallen

across the east, south, north and west zones for the same period.

Analysts say with new competition, Maggi's market share is certain to get impacted , but add

that Nestle has the potential to expand the Rs 1,300-crore instant noodles category which

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itself is growing at a rapid 15% annually. A detailed email sent to Nestle on Thursday elicited

no response.

Apart from HUL and GSK which have positioned their noodles as 'healthy' snacking options

targeting kids and mothers, others like Indo-Nissin's Top Ramen, Capital Foods' Ching's

Secret and CG Foods's Wai-Wai , though around for long, are stepping up marketing efforts

to take advantage of category growth. Besides, private brands like Big Bazaar's Tasty Treat

and Aditya Birla Retail's Feasters are notching up share.

Manoj Menon, FMCG analyst at brokerage firm Kotak Securities, wrote in a report earlier

this month: "Maggi faces product substitution risk and brands like Knorr and Foodles could

potentially impact its incremental growth. Nestle faces a challenging competitive

environment in culinary."

GSK, which entered the category in December last year, has taken away share from Maggi

mainly in the South and East riding on the equity of Horlicks and its well-entrenched

distribution in the regions.

GSK's executive VP, marketing, Shubhajit Sen, said: "Consumers were looking for a choice

in instant noodles; combined with that, the equity of Horlicks is leading to a lot of trails. The

initial response to Foodles is much higher than our expectations."

On the other hand, HUL, which rolled out Knorr Soupy noodles in the South this February,

had to postpone the brand's national launch due to capacity constraints because of heavy

consumer offtake. An HUL spokesman said: "We are very pleased with the performance of

Knorr Soupy noodles."

Private brands are whetting appetites of consumers too. According to Devendra Chawla,

business head, private brands, Future group: "The category boundary is set to be re-drawn.

From a snack food targeted at children, instant noodles category has evolved as a mainstay

meal even for grown ups."

Mr Chawla said Tasty Treat was the second biggest instant noodles brand in its Big Bazaar

stores after Maggi. The brand packaging was revamped last year and Future plans to roll out

additional variants in a month's time taking the number of variants to nine from the existing

three.

15

HISTORY OF MAGGI INDIA:

Nestl India Ltd. (NIL), the Indian subsidiary of the global FMCG major, Nestl SA,

introduced the Maggi brand in India in 1982, with its launch of Maggi 2 Minute Noodles, an

instant noodles product.

With the launch of Maggi noodles, NIL created an entirely new food category - instant

noodles - in the Indian packaged food market. Because of its first-mover advantage, NIL

successfully managed to retain its leadership in the instant noodles category even until the

early 2000s.

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.

During the 1990s, the sales of Maggi noodles declined, and this was attributed partly to the

growing popularity of Top Ramen , another instant noodles product. In order to improve sales

and attract more consumers, NIL changed the formulation of Maggi noodles in 1997.

However, this proved to be a mistake, as consumers did not like the taste of the new noodles.

In March 1999, NIL reintroduced the old formulation of the noodles, after which the sales

revived. Over the years, NIL also introduced several other products like soups and cooking

aids under the Maggi brand.

However, these products were not as successful as the instant noodles.In the early 2000s,

Maggi was the leader in the branded instant noodles segment, and the company faced little

serious competition in this segment. In the early 2000s, NIL started introducing new 'healthy'

products in accordance with the Nestl Group's global strategy to transform itself into a

health and wellness company. In March 1999, NIL reintroduced the old formulation of the

noodles, after which the sales revived.

Over the years, NIL also introduced several other products like soups and cooking aids under

the Maggi brand. However, these products were not as successful as the instant noodles. In

16

the early 2000s, Maggi was the leader in the branded instant noodles segment, and the

company faced little serious competition in this segment.

In July 2001, Maggi replaced Nescaf (NIL's coffee products brand) as the company's core

brand. Nescaf had been NIL's core brand since 1998.

Commenting on the shift, Carlo Donati (Donati), chairman and managing director, NIL, said,

"The focused approach on Nescaf, which was the company's flagship brand over the last few

years, has yielded rich dividends and we plan to replicate the same in case of Maggi as well."

In the early 2000s, the Nestl Group had been taking measures to transform itself into a

'health and wellness' company. The company had also set up new research and development

facilities with a view to improving the attributes of the existing Nestl products to make them

healthier, and to develop new health and wellness products. Since the early 2000s, the Nestl

Group had been introducing 'health and wellness products all over the world. In India, NIL

introduced new 'healthier' weaning and milk products in 2004.

In March 2005, the Maggi brand too took to the health route with the launch of Vegetable

Atta Noodles. NIL made use of the group's extensive research and development facilities in

developing this new 'healthy' product.

MAGGI INDIA

Nestle India Limited is the market leader in Indian Noodle Market with its Maggi Brand of

Noodles which was pioneer brand launched in 1983 in the packaged food market of India. It

took the challenge and established Maggi in Indian market considered to be conservative and

typical about food consumption. It appropriate realization of target segment, effective

positioning and effective promotion and sales made Maggi to Noodles in India as Xerox it to

photocopier. NIL had introduced sauces, ketchups and soups under Maggi brand to reap

benefit of brand popularity and image and contribute to financial gains by 1990.Maggi also

became successful in sauces, ketchups and soups Market in India. Though NIL tried to

extend to other ready to eat products like pickles, cooking aids and paste, It was unsuccessful

17

so dumped those products. Maggi Brand of products sustained recession in 2000 and 2001 in

India by introducing economy packets.

To fulfill novelty needs of customers and revitalize Maggi Noodles Brand NIL made

different attempts by introducing new formulation to new taste but customers resisted change

and Maggi had to reintroduce Maggi Noodles in same taste. Maggi Noodle had till 2005 five

product line on noodles with four variant in Maggi 2 Minutes Noodle. In 2006 in compliance

with NIL target to be health and Wellness Company Maggi repositioned it as health and

taste food products. NIL has also introduced with taste and product line in Sauces and Soup

Market under Maggi to catch new segment, revitalize brand, compete with other producers

and fulfill expectation of customers.

In 2005 Maggi brand worth was 3.7 billion from 1.7 billion market worth in 1.7 billion in

2003. Maggi Noodle is Market leader with around 80% market share in Noodles/Pasta and

Maggi Sauce is market leader with almost 37% of market share in 2005 in 1.8 billion market

of India. Knorr has taken over Maggi in Soup market recently.

In 2005 Maggi was the highest spender in the Promotion and Sales in the Indian Market in

the Noodles Category.

Maggi is competing with Heinz Sauces and Ketchup, Knoor Soups, Kissin Sauces and

Ketchup, Top Ramen, Sunfeast Pasta Wai Wai and 2 PM in corresponding categories of

products and variants

MAGGI TODAY:

The year 2003 saw India leading in worldwide Maggi sales. The brand has grown to an

estimated value of Rs 160-170 crore and contributes at least 8 9% to Nestle Indias top line.

18

All the same, some FMCG analysts feel that the brand has not done much to expand the

noodles category. Even after 20 years of its launch, the size of the instant noodles market is

yet quite small at Rs 200 crore. But yes, the parent company, Nestle India Limited has

certainly encouraged the brand to enter into other culinary products. Carlo Donati told a

leading newspaper that he wants to sell two and a half times of what he is selling today, in the

next 10 years.

Of course, being a first-mover - or even a market dominator - counts for nothing if marketers

let their guard down. Maggi noodles, which built itself on the taste-and-convenience platform

through the 80s and early 90s, started facing the heat from Indo Nissins Top Ramen brand

around 1995. The latter began pushing forward aggressively on a combination of taste

variants, smart audience segmentation and Shahrukh Khans brand endorsement.

Nestle promptly re-jigged its offering with a new taste - which didnt go down well with the

consumer. In 1999, Maggi was relaunched with its original taste, and sustained efforts saw

the brand reclaiming lost ground. Since then, the brand has been innovating constantly to

keep share. Maggi adapted to local tastes and withstood competition over the years and has

continuously sensitised itself to the evolving Indian consumer, says Martial Rolland,

chairman and managing director, Nestle India.

MARKETING MIX

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PRODUCTS OF MAGGI

NOODLES:

MAGGI 2 MINUTE NOODLES:

MAGGI 2-Minute Noodles is one of the largest and most loved food brands that defines

Instant Noodles in India.

Continuing to spread joy as it has done for the last 25 years, your favorite MAGGI Noodles is

as tasty as ever and even provides essential nutrients for all stage of your life. With the

goodness of Protein and Calcium, MAGGI Noodles is available in 4 delectable flavors

Masala, Chicken, Tomato and Curry.

MAGGI 2- MINUTE NOODLES

MAGGI VEGETABLE ATTA NOODLES

An offering that exemplifies Taste Bhi Health Bhi, MAGGI Vegetable Atta Noodles is tasty

because it is loaded with everyones favourite MAGGI Masala and healthy because it now

has more real vegetables and is packed with the power of fiber.

MAGGI VEGETABLE ATTA NOODLES

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MAGGI CUPPA MANIA

Each offering of MAGGI Noodles has been developed keeping in mind the Indian palate and

what you like. Since in todays fast-paced busy life, multitasking is a reality, you need

something that fits with your rushed lifestyle a product which is tasty and healthy, is

convenient to prepare and eat and also satiates your hunger .

MAGGI Cuppa Mania is a combination of all the above! In an easy to carry on-the-go Cup

format, MAGGI Cuppa Mania comes in two mouth watering variants Masala Yo! And

Chilly Chow Yo! Packed with real vegetables and the goodness of Calcium, just add garam

paani* to the Noodles and voila! A cupful of delicious MAGGI Cuppa Mania is ready for

you to carry on jaani!

MAGGI CUPPA MANIA

SOUPS

MAGGI HEALTHY SOUPS:

MAGGI was the pioneer of Instant Soups in India.

The new MAGGI Healthy Soups have been carefully prepared through the Research and

Development efforts of Nestl Group and are even more delicious, quick to prepare,

convenient and healthy. Taste Bhi, Health Bhi!.

MAGGI Healthy Soups contain real vegetables, are low fat, low cholesterol and free from

synthetic colours and added MSG.

These superior healthy soups are now available in an enhanced range of 12 delicious variants:

21

Healthy Style

- Rich Tomato

- Mixed Vegetable

- Creamy Chicken

- Masala Noodles

Chinese Style

- Hot & Sour Vegetable

- Sweet Corn Vegetable

- Sweet Corn Chicken

- Oriental Thai Noodles

Chef Style

- Cream of Mushroom

- Tangy Tomato Vegetable

- Sweet n Sour Tomato Noodles

- Palak Corn

SANJEENI MAGGI HEALTHY CUP

Traditional recipes for good health, made with ingredients time-tested for their goodness, like

Amla, Spinach, Dal and tomato. Available in an easy to use cup-just add hot water and treat

yourself to a cup foll of good life.

MAGGI SOUPS

22

SAUCES

MAGGI SAUCES

MAGGI Sauces have been an integral part of the Indian consumers' household for decades

now. To cater to the diverse Indian palate, MAGGI has a host of variants like:

- The quintessential Rich Tomato Ketchup and Rich Tomato Sauce.

- The unique Hot & Sweet Tomato Chilli Sauce and Oriental Chilli

Garlic sauce.

- The Indian style Tomato Chatpat Sauce

Lipsmacking tastes and vibrant packaging make MAGGI Sauces true to its slogan - It's

different!

MAGGI SAUCES

MAGGI PICHKOO

Pichkoo is a small doy pack which makes MAGGI Tomato ketchup affordable to a host of

new consumers. And now, MAGGI makes the delight "Bigger' by introducing a Bada

Pichkoo. A large Tomato Ketchup doy pack which ensures that the fun goes on and on.

It's endearing name, packaging and great taste evoke a resounding reaction.

"New MAGGI Pichkoo - It's different!"

23

MAGGI PICHKOO

PASTA

MAGGI PAZZTA:

To further delight the consumer, MAGGI now launches another range of

products for tasty and healthy eating NUTRI-LICIOUS PAZZTA. This

quick cooking pasta can be conveniently prepared in just 5 minutes, at

any time of the day that you want a tasty and healthy light meal. MAGGI

NUTRI-LICIOUS PAZZTA is made from 100% Suji, and is a source of

Protein and Fibre. It has being launched in two delicious flavours Masala

Penne and Cheese Macaroni.

MAGGI PAZZTA

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COOKING AIDS

MAGGI MAGIC CUBES:

MAGGI Magic Cubes enhance the taste of your everyday dish, making it a

special for the entire family. Available in two variants Vegetarian Masala &

Chicken MAGGI Magic Cubes are an ideal seasoning for a variety of dishes

such as Veg Biryani, Chicken Biryani, Chicken Curry etc. And its so easy to

use!

25

RESEARCH

METHODOLOGY

26

CHAPTER 3

3.1 RESEARCH METHODOLOGY

The methodology that was adopted for the study includes both primary source of data

as well as the secondary source of data. The methodology of the study can be explained.

The Research and Methodology adopted for the present study has been systematic and was

done in accordance to the objectives set which has been detailed as below.

Research Definition

Research is a process in which the researcher wishes to find out the end result for a

given problem and thus the solution helps in future course of action.

According to Redman & Mory, research is defined as a Systemized effort to

gain new knowledge.

Research Design:

According to Claire Seltiz, a research design is the arrangement of condition and

analysis of data in manner that aims to combine relevance to the research purpose with

economy in procedure.

27

3.2 OBJECTIVES

To make a comparative study of Maggi & Other Noodles.

To understand the brand performance of Maggi product.

To Understand the Marketing and Promotional Strategies adopted by Nestle Maggi.

To study the impact of brand image of customer buying process.

28

3.3 HYPOTHESIS

There is a higher level of Consumer satisfaction among the Maggi noodles.

Nestl India Ltd. (NIL) is providing in range product to customer.

29

3.4 LIMITATION

Time was limited 3 month for the study.

Questionnaire was used for primary data collection

Generally, the respondents were busy in their work and were not interested in

responding.

30

3.5 DATA COLLECTION

Data collection refers to a purpose gathering of information relevant to the subject

matter under study and methods depend mainly on nature, purpose and scope of the

enquiry to be undertaken on the available resource and time.

Data collection is one of the methods of research. There are mainly two methods of the

data collection.

PRIMARY DATA COLLECTION

SECONDARY DATA COLLECTION

PRIMARY DATA:

The primary data are those which are collected afresh and for the first

time, and thus happens to be original in character. We can obtain primary data either

through observation or through direct communication with respondents in one form or

another or through personal interview.

SECONDARY DATA:

Secondary data means data that are already available i.e. they refer to the data which

have been already been collected and analyzed by someone else. When the researcher

utilizes secondary data, then he has to look into various sources from where he can

obtain them.

Internet

Company manual and booklets

Books etc.

The source of information is generally classified as primary and secondary.

According to payline V. Young The source of information can be classified into

documentary sources and field sources.

31

a) Primary data:-

The information given / collection by individuals or group constitute primary

source.

Methods of generating primary data

i) Survey

ii) Personal interview

iii) Observation

v) Questionnaire

b) Secondary data:

Books, diary, manscrupt, letter, magazine, internet etc. are the secondary or

documentary source. The researcher for this dissertation has decided to use primary

source as interview schedule and secondary source as books and internet for data

collection.

Tools Of Data Collection:

a) Interview schedule & questionnaire was used as tool for primary source of

data collection.

b) Interview schedule consist of number of question typed in a definite order or

form.

Pre-study:

After careful study of literature and expert consultation the researcher still may

have only a rather vague idea about the critical element in his problem. As pilot study

sometimes may be launched as a step preliminary to the form scale before original

study are carried out in order to gain some preliminary information of the main

project.

32

Pretesting: -

Pretesting is the process of an advance testing of study design after the interview

schedule has been prepared .The researcher referred books and internet to get prepared

literature for this project & report.

Processing:-

Once the collection of data is over the main step top arranged for processing

and analysis of data.

Editing:

The preparation of the data forms for tabulations must include on operational

procedure for accepting, modifying or resection individual questionnaire.

Tabulation:

Tabulation is a process of summarizing raw and display it in compact forms for

further analysis. Analysis of data is made possible through tables. These tables are

made for different variables and to show relationship with each other.

Interpretation of data:-

Analysis and interpretation are central step in research process. The goal of

analysis is to summarize o collected data in such a way that they provide answer to the

and triggered the researcher. Interpretation is the research for the broader meaning of

research finding.

33

DATA ANALYSIS AND

INTERPRETATION

34

CHAPTER 4

DATA COLLECTION AND INTERPRETATION

1. Most of the customers who visited the store

Male Female

30 % 70 %

Interpretation:-

From the above the graph it is interpreted that 70% customers who visited

the stores are Female. While rest 30% customers are males.

30%

70%

0

10

20

30

40

50

60

70

80

Male Female

Gender

35

2. Occupation of the customers

Student Service Holder Businessmen other

16 % 35 % 39 % 10 %

Interpretation:-

From the above the graph it is interpreted that most of the

customers having business as occupation preferred Soaps brand of the

products. 35% of the customers are service holders.

16

35

39

10

0

5

10

15

20

25

30

35

40

45

Student Service holder Businessmen Others

Occupation

Occupation

36

3. Monthly Income of the customers

Less than

15,000

15,000

25,000

25,000

50,000

50,000

1,00,000

More than

1,00,000

6 % 19 % 23 % 27 % 35 %

Interpretation:-

From the above the graph it is interpreted that people having

monthly income of more than Rs 1lakh purchase products most while sum

whose income is 50000 1 lakh also prefers product.

6%

19%

23%

27%

35%

0

5

10

15

20

25

30

35

40

Less than15,000

15,000 25,000

25,000 50,000 50,000 1,00,000

More than1,00,000

Monthly Income

Monthly Income

37

4. Have you heard of Maggi Noodle?

Interpretation

From the above the graph it is interpreted that 79% of the

customers have heard about the Maggi Noodle. While 21% customer

does not have any information regarding of the Maggi Noodle.

0

20

40

60

80

Yes

No

21%

79%

Sales

Yes No

21% 79%

38

5. Are you satisfied with the Maggi Noodle?

Yes No

80% 20%

Interpretation

100% respondents in use Maggi Noodle their 80 percent customer called

yes and 20 percent customer called No.

80

20

0

10

20

30

40

50

60

70

80

90

Yes No

39

6. What comes first in your mind when you hear the word MAGGI?

Noodle 35

Fast food 10

Snacks 5

None of these 0

Interpretation

Out of 50 around 35 agreed that when they hear the word MAGGI first noodles comes

in their mind & 10% said fast food & other said snacks.

0

5

10

15

20

25

30

35

40

noodles fast food snacks none of these

40

7. What is the brand that comes to your mind when we say the word noodles?

Maggi 38

yippie 10

Topramen noodles 2

Anil noodles 0

Interpretation

Out of 50 approx 38 % of people said when they talk about noodle maggie comes first in their

mind & 10% said yippie noodle comes in their mind & other said topramen.

0

10

20

30

40

50

60

maggi top ramen wai wai noodle anil noodle

41

8. With what product would you associate the brand Maggi?

Ketchup 12%

Noodles 75%

Soup 10%

Masala 3%

Interpretation

75% of consumer associate the noodle with brand maggi, 12% consumer associate the

ketchup, 10% consumer associate with soup & 3% associate the masala with brand maggi.

ketchup

noodle

soup

masala

42

9. On a scale of 1 to 5 rate Maggi on the following parameters

Taste 5

Hygiene/purty 4

Variety/flavor 3

Availability 5

packaging 4

Interpretation

From the scale 1 to 5 the consumers gave 5(highest rate) to the taste & avalability, 4

rate to the hygiene/purity & packaging & 3(lower rate) to the variety & flavour. So the

company need to introduce maggi in different variety & flavour.

0

1

2

3

4

5

6

taste hygiene variety availability packaging

43

10. Rank the categories which Maggi should look in future in order of your importance:

Chocolate 7

Salted potato chips 15

Fruit juice 3

Processed foods 20

others 5

Interpretation

Here the consumer ranked the maggi should look in future in order their importance &

20% of people said it should be in prcessed food, 15% of people said it should be in salted

potato chips, 7% said it should be in chocolate , 3% in fruit juce & remaining said others. So

company should take the action to fulfill the consumer demand according to their importance.

chocolate

potato chips

fruit juice

processed food

other

44

11. How do you perceive Maggi products?

Good to health 15

Ready to eat 25

Junk food 3

Tasty/fun eating 7

Interpretation

25% of people percieve the maggi product ready to eat, 155 of people percieve good to

health, 7% of people percieve it as junk food & 3% percieve it as tasty/fun eating.

0

5

10

15

20

25

good to health ready to eat junk food tasty/funeating

45

12. Which Maggi products in noodles category do you regularly buy?

Maggi masala 25

Maggi vegetable atta noodle 10

Maggi dal atta noodle 5

Maggi rice noodle mania 8

others 2

Interpretation

Out of 50 half of consumer consume maggi masala, 10 consumer consume maggi

vegetable atta noodle, 8 consume maggi rice noodle mania, 5 consumer consume dal atta

noodle& remaining consume other. So the marketing & sale of maggi masala noodle is more

as compared to other maggi noodle.

0

5

10

15

20

25

30

maggi masala maggi vegetableatta

maggi dal atta maggi rice others

46

13. Do you perceive maggi noodles as a healthy product?

Yes 35

No 15

Interpretation

Out of 100% , 75% of consumers agreed that Maggi noodles is a healty product &

25% of consumers said that maggie noodle is not a healthy product.

yes

no

47

FINDINGS,

CONCLUSION &

SUGGESTION

48

CHAPTER 5

5.1 FINDINGS

32 percent of the respondents prefer maggi 2-minute noodles.

Vast majority (85 percent) of the respondents have tasted all brands of nestle Maggi

noodles.

72 percent of the respondents purchase nestle maggi noodles for its quality with low

price.

60 percent of the respondents purchase nestle maggi noodles whenever needed.

Television advertisements are a major factor in purchase decision compared toother

Medias.

The foremost influencer in purchase decision of the respondents is children.

60 percent of the respondents were expecting new varieties of maggi noodles from

Nestle.

38 percent of the respondents wanted a change in the quantity of present brands.The

respondents want small quantity packets.

50 percent of the respondents feel that the advertisements are good.

44 percent of the respondents feel that prices are cheap.

49

5.2 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.

Riding on the success of noodles, Nestle India, tried to make extensions of the Maggi

brand to a number of products like, sauces, ketchups, pickles, soups, tastemakers and

macaroni in the mid-1990s.

Unfortunately, the macaroni and pickles didnt pick up as expected. The soups and

sauces did somewhat fine, gathering considerable sales volumes and have a

satisfactory presence even today. Maggi Noodles itself faced a bit of difficulty with

respect to taste, and nearly lost its position in the minds of Indian consumers in the

late 1990s.

50

5.3 SUGGESTION

Foray into the other food products like chips, chocolates etc. under its sole brand

name Maggi as Maggi is a brand in itself which has been well recognized by the

masses.

Maggi should Focus on creating a product that do not need any cooking.

It should conduct promotional campaigns at schools in small towns with

population not more than 1000

It should strengthen the distribution channel of the rural areas within 100km of all

the metros.

It should launch new advertisement campaign (TV, radio, print media

commercials) with a brand ambassador or mascot

51

BIBLIOGRAPHY

52

BIBLIOGRAPHY

Books

Marketing Managememnt - J.C. Berry

Marketing Managememnt P. Kotler

Introduction Marketing Managememnt by Adran Palmar

Research Methodology by C.R. Kothari.

Journals

Consumer Behaviour in Indian

Websites

http://www.maggi.com.

www.wikipidia.com/maggi

www.google.com

http://www.maggi.com/

53

APPENDIX

54

APPENDIX

1. Most of the customers who visited the store

Male

Female

2. Occupation of the customers

Student

Service Holder

Businessmen

Other

3. Monthly Income of the customers

Less than 15,000

15,000 25,000

25,000 50,000

50,000 1,00,000

More than 1,00,000

4. Have you heard of Maggi Noodle?

Yes

No

5. Are you satisfied with the products of Maggi Noodle?

Yes

No

6. What comes first in your mind when you hear the word MAGGI?

Noodles

Fast Food

Snacks

None of these

6. What is the brand that comes to your mind when we say the word noodles?

Maggi

Top Ramen

Wai Wai Noodles

Anil Noodles

55

7. Rank the following Maggi products w.r.t frequenct of purchase with being the highest

rank

Noodles ______

Ketchup ______

Soup _____

Pickles _____

Cubes _____

8. With what product would you associate the brand Maggi?

Ketchup

Noodles

Soup

Masala

9. Rank the categories which Maggi should look in future in order of your importance:

Chocolates _____

Salted potato chips ____

Fruit juices ____

Processed foods(ready to use pastes and masalas) ____

Others(please mention) ________________

10. How do you perceive Maggi products?

Good to health

Ready to eat

Junk food

Tasty/fun eating

11. Which Maggi products in noodles category do you regularly buy? (Repositioning

Awareness)

Maggi masala

Maggi vegetable atta noodles

Maggi dal atta noodles

Maggi rice noodle mania

Others

12. Do you perceive maggi noodles as a healthy product?

Yes

No