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THIS PROJECT EXPLAIN HOW DOES ADVERTISEMENT AFFECTS THE SALE OF A BRAND......WITH SPECIAL REFERENCE TO MAGGI

THIS PROJECT EXPLAIN HOW DOES ADVERTISEMENT AFFECTS THE SALE OF A BRAND......WITH SPECIAL REFERENCE TO MAGGI

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  • 1. 1 DECLARATION I Miss. VAISHNAVI S. S. SIKARWAR of T.Y.BMS. (Bachelor Degree of Management Studies Semester – V) hereby declare that I have completed the project on IMPACT OF ADVERTISING ON MAGGI in the academic year 2013-2014. The information submitted is true and original to best of my knowledge. ________________ ________________ Date of Submission. Signature of Student (VAISHNAVI S. S. SIKARWAR)
  • 2. 2 PREFACE Launched in 5 flavors initially – Masala, chicken, Capsicum, sweet & sour, and Lasagna– Maggi had to fight hard to be accepted by Indian consumers with their hard-to-change eating habits. The packaged food market was very small at this time, Nestle had to promote noodles as a concept, before it could promote Maggi as a brand. It therefore Devised a two-pronged strategy to attract mothers on the „convenience‟ plank and lure kids on the „fun‟ plank. Gradually, the market for instant noodles began to grow. The company also decided to focus on promotions to increase the brand awareness. In the initial years, Nestle promotional activities for Maggi included schemes offering Gifts (such as toys and utensils) in return for empty noodles pack. According to analysits the focus on promotion turned out to be the single largest factor responsible for Maggi‟s rapid acceptance. Nestle‟s Managers utilized promotions as measured to meet their sales target. Gradually, sales promotion became a crutch for Maggi noodles sales. Later many of the Maggi‟s extensions also made considerable use Of promotional schemes. The focus of all Maggi‟s extensions was more on below the line activities rather than direct communication. In addition to promotional activities, Maggi associated itself with main stream television programme and advertised heavily on kids programme and channels. After its advertisements with taglines like “mummy bhookh lagi hai, bas do minute” and fast to cook good to eat Maggi‟s popularity became highly attributed to its “extremely high appeal to children”. As a result, Maggi‟s annual growth reportedly touched 15% during its initial years. It gives immense pleasure to present what impacts “Maggi” as a product has made on advertizing in the world and its different strategies to try to become the number ONE product in the world.
  • 3. 3 I am very much grateful to my friends and my teachers who have helped me in my project and supported me in all manners. It was a great experience working on this project.
  • 4. 4 INDEX Sr. no 1. Topics CHAPTER 1- INTRODUCTION TO MAGGI 1.1Sample Size 1.2 Sample Unit 1.3 Hypothesis 1.4 Objectives 1.5 Various Products under Maggi 1.6 Product Life Cycle of Maggi 2. CHAPTER 2- PROMOTION AND STRATEGIES ADOPTED BY MAGGI 2.1Trade Promotion Strategy 2.2 Consumer Promotion Strategy 2.3Sales Promotion Strategy 2.4Marketing Strategy 2.5Message Strategy 2.6 360 marketing Strategy 2.7 Distribution Strategy 2.8 Competitive Strategy 3. CHATER 3- MARKETING MIX OF MAGGI 3.1Product 3.2Price 3.3Place 3.4Promotion Page no.
  • 5. 5 4. CHAPTER 4- VARIOUS MAGGI ANALYSIS 4.1STPD 4.2SWOT 4.3Market Share 5. CHAPTER 5- ADVERTISING DESIGN OF MAGGI 5.1Taste and preferences of consumers 5.2Demography and psychography of consumers 5.3Marketing Organization 5.4Competitions 6. CHAPTER 6- DATA INTERPRETATION 6.1Pie-Chart Interpretation 6.2Conclusion 6.3Recommendation 7. APPENDIX (Questionnaire) 8. BIBLIOGRAPHY ANALYSIS AND
  • 6. 6 CHAPTER 1- INTRODUCTION TO MAGGI Maggi is a Nestlé brand of instant soups, stocks, bouillon cubes, ketchups, sauces, seasonings and instant noodles. The original company came into existence in 1872 in Switzerland, when Julius Maggi took over his father's mill. It quickly became a pioneer of industrial food production, aiming at improving the nutritional intake of worker families. It was the first to bring protein-rich legume meal to the market, which was followed by ready-made soup based on legume meal in 1886. In 1897, Julius Maggi founded the company Maggi GmbH in the German town of Singen where it is still established today. Maggi Comes to India – teething troubles Maggi noodles was launched in India in the early1980s. Carlo M. Donati, the present Chairman and Managing Director of Nestle India Ltd, brought the instant noodle brand to India during his short stint here in the early eighties. At that time, there was no direct competition. The first competition came from the ready-to-eat snack segment which included snacks like samosas, biscuits or maybe peanuts, that were usually „the bought out‟ type. The second competition came from the homemade snacks like pakoras or sandwiches. So there were no specific buy and make snack! Moreover both competitors had certain drawbacks in comparison. Snacks like samosas are usually bought out, and outside food is generally considered unhygienic and unhealthy. The other competitor, „homemade‟ snacks overcame both these problems but had the disadvantage of extended preparation time at home. Maggi was positioned as the only hygienic homemade snack! Despite this, Nestlé faced difficulties with their sales after the initial phase. The reason being, the positioning of the product with the wrong target group. Nestle had positioned Maggi as a convenience food product aimed at the target group of working women who hardly found any time for cooking. Unfortunately this could not hold the product for very long. In the course of many market researches and surveys, the firm found that children were the biggest consumers of Maggi noodles. Quickly they repositioned it towards the
  • 7. 7 kids segment with various tools of sales promotion like color pencils, sketch pens, fun books, Maggi clubs which worked wonders for the brand. Maggi was positioned as „2-minute noodles‟ with a punch line that said „Fast to cook! Good to eat!‟ And this gave the implied understanding to the consumer that it was a „between meals‟ snack. The company could have easily positioned the product as a meal, either lunch or dinner. But, it chose not to do so, because the Indian consumer mindset did not accept anything other than rice or roti as a meal. Hence trying to substitute it with noodles would have been futile. The firm did not position it as a „ready-to-eat‟ meal either, as the housewife prefers to „make‟ a meal for her kids rather than buy it for them. And if she can make it in two minutes with very little effort, then obviously it‟s a hit with her! What‟s more, if kids also love the taste, the product is as good as sold! So the „2- minute‟ funda coupled with the „yummy taste worked!
  • 8. 8 1.1 SAMPLE SIZE My sample size for the research was 100 customers and consumers of Maggi. 1.2 SAMPLE UNIT My sample unit includes mostly all age groups as I wanted to evaluate the how famous Maggi is among the children, youth, adults and old age people. Thus I distributed my questionnaires to all the customers and consumers of Maggi of that are the common people.
  • 9. 9 1.3 OBJECTIVES  To study the influence of Maggi as a brand on consumers mind set.  To evaluate sources of Brand equity of Maggi like Brand awareness, Brand image, Brand association, Brand recall.  To study the Brand performance of Maggi products.  To examine Brand Imagery, Brand Quality perceived by customers, Brand credibility, consideration, superiority and feelings.  To study the medium of media through which they became aware of Maggi.
  • 10. 10 1.4 HYPOTHESIS  “Maggi is one of the most famous and familiar product that can be targeted to all age groups”.  “Easy to cook strategies attracts the consumers”.  “Creative interaction blogs for customers”.  “Focus mainly on Health Benefits”.
  • 11. 11 1.5 Various Products under Maggie The product mix of Maggi is divided into various categories defined below. The company has launched various products under each category as mentioned below. 1. Noodles a) Maggi 2-Minute Noodle (Masala, Chicken, Curry and Tomato) b) Maggi Dal Atta Noodles(Sambhar taste)vegetables Atta Maggi Noodles c) Maggi Rice Noodles (Lemon Masala, Chilly Chow and Shahi Pulao) d) Maggi Cuppa mania (Masala yo, Chilli chow yo) 2. Sauces a) Teekha masala Tomato chatpat Imli khata mitha Tomato ketchup Hot and sweet Tomato pudina b) Ginger, Garlic & Coriander c) Maggi Oriental Chilli Garlic d) Ginger, Garlic & Coriander 3. Maggi Pichko
  • 12. 12 4. Soups Healthy a) Chef Style i. Cream Mushroom ii. Sweet Sour Tomato Noodles iii. Tangy Tomato Vegetables b) Home Style i. Creamy Chicken ii. Mixed Vegetable iii. Rich Tomato c) Chinese Style i. Chinese Hot Sour Chicken ii. Chinese Sweet Corn Chicken iii. Chinese Sweet Corn Vegetables iv. Chinese Hot & Sour Vegetables 5. Maggi soup sanjivni a) Amla b) Badam c) Spinach d) Dal e) Tomato
  • 13. 13 6. Maggi bhuna masala a) Bhuna masala for gravy dishes b) Bhuna masala for vegetable dal 7. Maggi magic cubes
  • 14. 14 1.6 Product Life Cycle of Maggi Introduction Stage: • Sales growth tends to be slow at this stage. • Cost per customer is high. • Negative profits. • Competitors are few. The marketing objective is to create product awareness. The product launched keeping in mind the working women and children… • No competition • It was the pioneer in the instant noodle market. • Distribution channel Producer -- Distributor -- Retailer -- Consumer
  • 15. 15 • PRICING The initial pricing strategy was low pricing strategy to make product affordable. • PROMOTION Promotion focuses on awareness and information Promoted with the tag line “ BAS 2 MINUTE.” Promotion done by - Giving gifts on empty packets. Growth Stage: • Rapidly rising sales. • Rising profits. • Unit manufacturing cost declines. • The marketing objective is to maximize market share. • Sales increased. • 50% market share. • No.1 brand. PRICE- prices were kept normal. PRODUCT- no any new changes PROMOTION-“GOOD TO EAT FAST TO COOK” Maturity Stage: Sales are at peak. • Profits are high. • Cost per customer low. • The marketing objective is to maintain or extend the market share. Introduced new Variety. – Price Rs. 5 Onwards. – Big Time Promotional Offers. – Slow Down In Sales. – Market Saturation. –
  • 16. 16 PRODUCT - Maggi introduced wide variety of products like Dal atta noodles, Chicken maggi, Maggi cuppa mania. PRICE- Maggi still comes in very affordable prices starting from Rs. 5, they reduced the quantity instead of increasing price DISTRIBUTION- Distribution became more intensive. Adopted various intensive programme for encouraging the product over their competitors in the market.  Segmentation To Differentiation • Classic Noodles - 5 to 10 yrs.. • Veg. Atta Noodles - health conscious. • Rice Mania – teenagers.. Cuppa Mania - office goers Decline Stage: • Sales started declining • Profits are at decline • Cost per customer still at low • The marketing objective is to reduce the expenditure  Sales saw a decline in 1990‟s -Formulation changed from fried base to air dried base.  New product launched but failed-Dal atta noodles of sambur flavour.  Tough competition from TOP RAMEN.
  • 17. 17 Reintroduction of MAGGI: • Reintroduced in 1999 • Increased Distribution • Focus on new segments of Society • New & Interesting TV Commercial
  • 18. 18 CHAPTER 2- PROMOTION AND STRATEGIES ADOPTED BY MAGGI 2.1Trade Promotion Point of purchase advertising: Point-of-purchase advertising is any form of special display that advertises merchandise. As their main target is children, Maggi packs are usually placed in low counters, shelves or hung in twine baskets within their eye level. Because, children often influence purchases by pestering their parents to buy things on seeing them. 2.2 Consumer Promotion Sampling: Initially NIL aggressively promoted Maggi noodles through several schemes like distributing free samples, giving gifts on their return of empty packs, etc. the company has spent a huge amount of money in communicating the product‟s benefit to the target consumers. 2.3 Sales Promotion  Objectives • To introduce new products • To attract new customers and retain the existing ones • To maintain sales of seasonal products • To meet the challenge of competition  Tools • Exchange schemes • Price-off offer • Coupons • Scratch and win offer • Money Back offer • Maggi Noodles or Retailers sale promotion initiatives • Maggi was distributed free in schools and offices to promote trial • Return gifts on empty packs • Maggi fun book and stickers with funky animal facts.
  • 19. 19 • Organized retails SP • 7% discounts on 6 piece pack (56 MRP), 5 rupee discount on 8 piece pack( 78 MRP). These are promotional schemes given by retailer itself not by NIL. • Company is coming up with schemes like giving one soup pack with 8 piece pack. • In Past company has promotional schemes like 4piece pack with that of 36 instead of 40 • Large pack sizes at the top with decreasing pack sizes as going downward. Why? This is because that for a retail outlet the more value is generated large pack thus they try to project big size at convenience place. Outer display shelves are purchased by company (Reliance mart).
  • 20. 20 2.4 Marketing Strategy Conducting promotional campaigns in schools is one of their main marketing activities. Advertising strategies: The focus of the advertisements is on the children as they are their major consumers. Availability in different pack sizes: Packing is the biggest plus point of Maggi market penetration. They have the product available in all sizes to tap the categories of consumers. There is a good innovation present in the products. Maggi 2 minutes noodles, Cup-o-Maggi, Atta noodles etc. are the different forms of the same product available in market. 2.5 Message Strategies Maggi follow different message strategies. They use cognitive strategies as product information are provided for the consumers on the ads. NIL also involve affective message strategies as they relate Maggi noodles with the emotions, like it is a fun product for kids. 2.6 360 Marketing Strategy To maintain the image of the brand Maggi, NIL has adopted the 360 degree marketing strategy. They promoted the product as a health product. Initially NIL aggressively promoted Maggi noodles through several schemes like distributing free samples, giving gifts on the return of empty packs, etc. the company has spent a huge amount of money in communicating the product‟s benefit to the target consumers. They have spent the huge amount on various small events for the kids and on advertisement of the Maggi like electronic and print advertising.
  • 21. 21 2.7 Distribution Strategy Maggi distribution strategy is a 3 chain system i.e. Nestle – Distributor – Retailer Nestle: It has decentralized Manufacturing where each plant operates on its own requirement of production. There is no monolithic or centralized approach in the production process. It follows two types of distribution paths. The first one being traditional (Kirana Stores) in which the stock of Maggi is available to almost all the small Kirana stores for the consumers. The second one is the institutional food outlets in which the stock is available with every food malls like big bazaar, Apna Bazaar, Reliance food outlets. So by making the product available everywhere, Nestle tries to reach to its customers easily. Distributor: Nestle offers 6% margin for distributors. The distributor has to pay in advance to Nestle but he has to give the stock to the retailers on credit. Here they try to target small and big shops both so that they can cater and reach to every kind of customers from various strata of the society. Retailer: Retailer gets 10% margin from distributor and 15% margin for new & promotional products. Nestle also has brought various area space for different promotional purposes. For promotional purposes, Nestle does the sampling both wet and dry sampling at these promotional place.
  • 22. 22 2.8 Competitive Strategy To beat the competition from Top Ramen and others in this segment, Nestle did the following things: (1) Nestle introduced Maggi in new packs with different contests for the customers. (2) It came up with innovative products like Maggi Pasta in two different flavors – Masala & cheese Macroni. (3) It also focused on its advertising strategies by introducing new ones in order to keep in touch with customers so that the image of the product does not get washed away. (4) It made its product affordable by introducing small Maggi pack of Rs.5. These competitive strategies are overlapping as the company has always thought of different kind of strategies keeping in mind its competitors. Though other brands came up with something similar to Maggi, but they had temporary effects on consumers mind as consumers switched to the Maggi brand for its taste.
  • 23. 23 CHAPTER 3- MARKETING MIX OF MAGGI
  • 24. 24 3.1 PRODUCT Nestle Maggie offers various products (refer Chapter 1.1.5) for the customers and consumers.
  • 25. 25 3.2 PRICE
  • 26. 26 3.3 PLACE Whenever, Wherever, However… • Connecting with customers out of home…..in the movies. • MAGGI Fun spots • Supply in other nestle outlets. • ITES/BPO employees
  • 27. 27 3.4 Promotion • They promoted the product by, • Distributing free samples. • Giving gifts on return of empty packets. • Dry sampling-distributing Maggi packets. • Wet sampling - distributing cooked Maggi. • Availability in different packages 50gm,100gm, 200gm,etc.. • Effective Tagline Communication.
  • 28. 28 CHAPTER 4- MAGGI ANALYSIS 4.1 Maggi STPD Analysis Segmentation: Based on life style and habits of urban families. Targeting: Kids, office goers Positioning: With statements as “2 minute noodles” and “easy to cook good to eat” . Differentiation: Taste, flavours, packaging.  Segmentation The segmentation of Maggi was done on the basis of • Age • Lifestyle • Eating Habits of Urban families  Positioning • Nestle positioned their product Maggi with the well known slogans such as • “2 minute noodles” • “taste bhi health bhi” • “Easy to cook, good to eat” • “fast relief from hunger” • They also positioned it as hygienic homemade snack.
  • 29. 29  Targeting Target audience are: • Kids • Youth • Working women • Office goers  Differentiation • Maggi was and is still differentiated on the basis of • Taste • Flavors • Packaging
  • 30. 30 4.2 SWOT ANALYSIS OF MAGGI BRAND The SWOT analysis of Maggi brand clearly indicates the strengths of Maggi as a Brand in Indian market. The Brand was found to be a leader in its category of Noodles, with strong customer loyalty. Intensive distribution of Maggi as a Brand was seen in urban areas of the country. The major threats of the brand as shown in the figure below indicates that Maggi has made several attempts to revamp itself as a „Healthy Product” but till date its perseverance towards the tag line is low by the consumers. The brand is in the growth stage of product life cycle with a strong inclination towards the maturity stage. SWOT ANALYSIS  Strength Market leader in their segment. Strong brand loyal consumer base. Wide range of distribution channel. Product according to the need of Indian consumer. Innovative Product  Weakness Product is dependent on each other Not so much presence in rural market  Opportunity Increasing number of working youth. Product has been acceptable in youth category. Shift to rural market. Changing preference of consumer towards Chinese food and fast food. Can foray into other food markets with its strong Brand name.  Threat Price war with competitors. Strong presence of regional competitors. Consumers don‟t perceive it as a “Healthy Product”.
  • 31. 31 4.3 Market Share  Maggi's Market Share in Ketchup Category Sales ma… 55% 45% Maggi has a market share of 45% which is a high percentage. It dominates the market in the ketchup segment.  Maggi's Market Share in Noodles Category Sales 20% 80% Maggi Others Maggi has a market share of as high as 80% in the noodles segment. It dominates the market. It is the leader in this segment.
  • 32. 32 CHAPTER 5- ADVERTISING DESIGH OF MAGGI 5.1 Taste and Preferences of consumers Health is the flavour of the season. Food companies in India are growing aware of the increasingly changing consumption trends and taste preferences among the Indian junta. No surprises, but this is the reason more and more companies are coming up (or are actually re-marketing) with products that are healthy. Take for example Coke and Pepsi; both have already started looking into the noncarbonated drinks category section. Maggi first introduced in the market Maggi Atta Noodles – which it claimed was a healthy food as it was made of wheat flour followed by soups. Nestle India, in an effort to carry on with its trend of providing the Indian consumer‟s healthy food recently introduced a range of Healthy Soups. The entire range consists of the following; maggi tomato, mixed vegetable, tomato vegetable, mushroom, chicken, sweet corn chicken and hot and sour vegetable. The product is priced at Rs 25 for 70 grams. Maggi became successful because it understood consumers. The brand never wanted to change Indian consumer‟s habit. It did not have ambitions about changing Indian‟s breakfast or dinner preferences. What Maggi did was to slowly attach itself to Indian consumer's need without disruption. Maggi was also closely watching consumer preferences. When consumers wanted healthy food, Maggi launched Atta Noodle variants that were healthy. More importantly this move addressed the concerns of Homemakers. The brand extended itself to multiple segments but without diluting the core brand equity. Maggi over these years have made lot of mistakes. It made mistakes because the brand was willing to experiment. More importantly the brand learned from those mistakes and corrected itself. Maggi also invested heavily in brand building. The campaigns for one of Maggi‟s products were always there in the media which kept
  • 33. 33 the brand fresh in the mind of the consumers. Maggi personifies the basic principles of understanding consumers, innovating and investing in the brand. Maggi is one packaged food brand that has only seen its popularity grow in the past many years and the secret to the success is that instead of trying to change the food habits of consumers, it has tried to align itself with local tastes and preferences with the „fast to cook and good to eat‟ promise. To commemorate its successful journey through a quarter of a century in the world‟s largest consumer market, the brand, last year, launched an innovative campaign inviting its loyalists to share with it their Maggi stories and promised to broadcast them to the world at large, thereby, making them the superstars overnight. Along with television commercials, which aired individual consumer stories of their lasting memories of Maggi, the brand displayed pictures of these loyal customers on the Maggi packs. Nestle also introduced a website Meandmerimaggi.in for engaging with them. The company also rewarded its consumers by adding to the Maggi portfolio that hitherto had sauces and soups in various flavours, a range of prepared dishes and cooking aids such as Maggi Bhuna Masala and Maggi Pasta. So far focused on urban consumers, the company also made a pitch for rural consumers by launching Maggi Rasile Chow noodles at an inviting price of Rs4. Again, local tastes and recipes have been at the core of all these marketing innovations. “Creating delight and happiness in everyday meals is not just about providing tasty food. It is about providing taste and health in a convenient combination,” says Shivani Hegde, general manager, foods.
  • 34. 34 5.2 Demography and Psychography of consumer  Demography 1) Age and sex: - Maggi products are consumed by people of different age groups. They are consumed by children, teenagers, adults as well as old people. They are consumed by both genders male and female. 2) Income: - Maggi products are available at reasonable prices. So they are consumed by the lower, middle as well as the higher class. 3) Religion and nationality: - Maggi products are famous and are consumed by people of all religions and nationality.  Psychography 1)Attitude: - Consumers of maggi have a positive attitude towards the product which makes it the leader in the market. Maggi dominates the market. 2) Lifestyle: Lifestyle determines the way of living of people. It describes how a consumer leads his life. Maggi products are consumed by all.
  • 35. 35 5.3 Marketing Organization  Theoretical Framework Hierarchy of Effects: Maggi ads have already crated enough awareness, now they focus on the other steps of hierarchy of effects model. The advertisement of Maggi provides information about nutrition facts and several flavors available, also attract kids with colorful background and execution of ads. This ultimately results in actual purchase.  Executional Framework • Slice-of-life:In Maggi ads it is shown that, a hungry kid comes from school or plays ground and tells mom that he is hungry, and the mother says, “just 2minutes” and cooks Maggi noodles for the kid. So, here the problem stated is hunger and the solution is the product itself Maggi noodles. • Dramatization:For example, in one ad, it was shown that a child, who is away from home, is writing a letter to his mother that, he is missing his mother and the noodles she used to cook for him. Then he smells something and look back, he saw his friends cooked Maggi noodles for him and they says, they are also missing their mom. • Informative: info about nutrition facts and famous 2-minute cooking process.  Ad Media Selection • Television & Radio: They have several television ads with the tagline “Fast to cook, good to eat”, “just 2-minutes” , “taste bhi health bhi” etc. these ads are telecasted on the commercial break of different kids and family oriented programs on different channels, such as- Star Plus, Sony Entertainment TV, Cartoon Network, Pogo channel etc. Maggi has recently launched “Me and My Maggi” campaign in commensuration of 25 years of Maggi in India. Similarly, Maggi ads are broadcasted between several radio programs to attract attention of more number of customers. • Magazines & Newspaper: Maggi‟s expenditure in print media is low.
  • 36. 36  Print Ads • Maggi does not focus heavily on print media during its launch since its initial target audience was mothers and kids. • Some advertisements in the print media were used to highlight the convenience factor of Maggi. • Maggi introduced this advertisement in various magazines in 2003to celebrate 20 years of its years of its product in India. • Maggi has recently come out with advertisements in some weekly magazines for its new atta noodles and rice noodles variants. Maggi rice noodles mania had the highest column centimeter in print during jan – aug ‟07 among the instant foods category. Growth in noodles/pasta print advertising grew by 42% in jan-may05 compared to jan-may 04. Of this, maggi vegetable atta noodles had 92% share Organizational structure is the formal framework by which jobs tasks are divided, grouped, and coordinated. Nestlé Maggi is a function-based organization. The tasks are divided into separate jobs and then these jobs are grouped together under different departments i.e. functional departmentalization is found in organization. Each major area is kept under the manager who is specialist in that concerned field and is responsible for all activities, which that department performs Organizational structure of Nestle Maggi is hierarchical. There is a chain of command that extends from upper organization levels to the lowest levels and clarifies who reports to whom. The orders move from upward to downward and suggestions move downward to upward direction. The continuous improvement section is made for this purpose. It encourages employees to give their suggestions and share the new ideas. The jobs are formalized; there are explicit job descriptions, numerous organizational rules, and clearly defined procedures covering work procedures. But in spite of formal rules and regulations, Nestlé keeps on changing to keep a pace with the changing
  • 37. 37 environment. So, it is strict but not rigid organization. In effort to be more flexible and responsive, there has been distinct trend in this organization toward decentralizing decision-making.
  • 38. 38 5.4 Consumer Feedback: • For review the revenue and sales, and consumer feedback is taken into consideration. • Maggi is NIL‟s largest brand (Nescafe was the largest until mid-1990‟s) withsales (gross) of 2154.5 crore (FY11). It includes the sales of instant noodles and pasta cooking aids, soups and sauces. Enjoying virtual monopoly in the segment until FY10, NIL revenues from the segment have grown at a CAGR of 26.3% (CY04-11) backed by volume growth of 20.5% and price growth of 4.8%. Expected growth (CAGR CY11-13E) of Maggi is 20.5% (volume growth of 17%).
  • 39. 39 5.5 Competitors  Top Ramen  Sunfeast Yippee!  Chings Noodles
  • 40. 40  Smith &Jones  Knorr Noodles
  • 41. 41 CHAPTER 6- DATA ANALYSIS AND INTERPRETATION Q 1) Are you a consumer of Maggi? Particulars Yes No Total Responses 97 3 100 Total 97 3 100 RESPONSES YES NO As we can see after the research 97% of people are aware about the brand maggi and they are the consumer too.Thus we can make out how famous the brand name maggi is among the people.
  • 42. 42 APPENDIX Q 1) Are you a consumer of Maggi? o Yes o No Q 2) What is the brand that comes to your mind when we say the word noodles? o Maggi o Top Ramen o Knorr Noodles o Smith & Jones Noodles o Sunfeast Yippee Q3) Rank the following Maggi products with respect to frequency of purchase with 1 being the highest rank. • Noodles_______ • Ketchup______ • Soup_________ • Pickles_______ • Cubes_______ Q4) With what products would you associates the brand Maggi? o Ketchup o Noodles o Soup o Masala
  • 43. 43 Q5) Which Maggi products in noodles category do you regularly buy? o Maggi masala o Maggi vegetable atta noodles o Maggi dal atta noodles o Maggi rice noodles mania o Others( Plz Mention) Q6) You came to know about Maggi from: o Newspapers o Radio o T.V advertisements o Word of mouth o Other source Q7) Do you perceive Maggi noodles as a healthy product? o Yes o No Q8) Would you still prefer Maggi products if other competitors product are offered in less price. o Yes o No
  • 44. 44 BIBLIOGRAPHY

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