A project on research and methodology of maggi

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A project on research and methodology of maggi

A project on research and methodology of maggi

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  • 1. Projectsformba.blogspot.com A project on Research and Methodology Submitted to University of Mumbai In the partial fulfillment of BMS Degree By the students of Class: SY BMS Div: A Semester :Fourth Group Members Studying at : Rizvi College of Arts, Science, Commerce Bandra (West), Mumbai 400050. For the Academic Year 2009- 2010.Projectsformba.blogspot.com 1
  • 2. Projectsformba.blogspot.com ACKNOWLEDGEMENT.We would like to thank our professor; ……………. who gave theopportunity to make this project through which we have gainedvaluable information on the topic “Maggi.”We would also like to thank all my friends for helping and making the project successful. These acknowledgements are one way where we can actually thank the people who have been instrumental in the making of this project. With their help theproject was done with ease. We would like to thank a lot of people without whose co-operation and support working on this project would not have been so pleasurable and interesting.Projectsformba.blogspot.com 2
  • 3. Projectsformba.blogspot.com CERTIFICATEI professor ……………… here by certify that ………………………………………………………. of SY.BMS. (Div – A)of Rizvi College of Arts, Science, Commerce & Management hascompleted a project on the information ”Maggi” in the academicyear 2009 – 2010.The Information submitted is True & original to best of myknowledge.Signature of the principal Signature of ProfessorDate :Place :Projectsformba.blogspot.com 3
  • 4. Projectsformba.blogspot.com DECLARATIONOur group:- ………………………………………………………….…………………………………………of SY.BMS.(Div – A) hereby declare that we have completed this project on “ Maggi” in the academic year 2009 – 2010. This information provided by us is true and original to the best of our knowledge. Projectsformba.blogspot.com 4
  • 5. Projectsformba.blogspot.com INDEX Sr. No Particulars Pg. No 1 Introduction to Maggi 7 2 Brand Story 8 3 Various products of Maggi 9-10 4 Taste and preference of 11-12 consumers 5 Demography and 13 psychography of consumers 6 Market Share 14-15 7 SWOT analysis of Maggi 16 brand 8 Research methodology 17-18 9 Questionnaire 19-21 10 Analysis of questionnaire 22-25Projectsformba.blogspot.com 5
  • 6. Projectsformba.blogspot.comINTRODUCTION TO MAGGIMaggi is a Nestlé brand of instant soups, stocks, bouillon cubes, ketchups, sauces,seasonings and instant noodles. The original company came into existence in 1872 inSwitzerland, when Julius Maggi took over his fathers mill. It quickly became a pioneerof industrial food production, aiming at improving the nutritional intake of workerfamilies. It was the first to bring protein-rich legume meal to the market, which wasfollowed by ready-made soup based on legume meal in 1886. In 1897, Julius Maggifounded the company Maggi GmbH in the German town of Singen where it is stillestablished today.Maggi Comes to India – teething troubles Maggi noodles was launched in India in theearly1980s. Carlo M. Donati, the present Chairman and Managing Director of NestleIndia Ltd, brought the instant noodle brand to India during his short stint here in the earlyeighties. At that time, there was no direct competition. The first competition came fromthe ready-to-eat snack segment which included snacks like samosas, biscuits or maybepeanuts, that were usually ‘the bought out’ type. The second competition came from thehomemade snacks like pakoras or sandwiches. So there were no specific buy and makesnack! Moreover both competitors had certain drawbacks in comparison. Snacks likesamosas are usually bought out, and outside food is generally considered unhygienic andunhealthy. The other competitor, ‘homemade’ snacks overcame both these problems buthad the disadvantage of extended preparation time at home. Maggi was positioned as theonly hygienic home made snack! Despite this, Nestlé faced difficulties with their salesafter the initial phase. The reason being, the positioning of the product with the wrongtarget group. Nestle had positioned Maggi as a convenience food product aimed at thetarget group of working women who hardly found any time for cooking. Unfortunatelythis could not hold the product for very long. In the course of many market researchesand surveys, the firm found that children were the biggest consumers of Maggi noodles.Quickly they repositioned it towards the kids segment with various tools of salespromotion like colour pencils, sketch pens, fun books, Maggi clubs which workedwonders 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 mindsetdid not accept anything other than rice or roti as a meal. Hence trying to substitute it withnoodles would have been futile. The firm did not position it as a ‘ready-to-eat’ mealeither, 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 withher! 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!Projectsformba.blogspot.com 6
  • 7. Projectsformba.blogspot.com BRAND STORYLaunched 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-changeeating habits. The packaged food market was very small at this time, Nestle had topromote noodles as a concept, before it could promote Maggi as a brand. It thereforedevised a two-pronged strategy to attract mothers on the ‘convenience’ plank and lurekids on the ‘fun’ plank. Gradually, the market for instant noodles began to grow. Thecompany also decided to focus on promotions to increase the brand awareness. In theinitial years, Nestle promotional activities for Maggi included schemes offeringgifts( 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 factorresponisible for Maggi’s rapid acceptance. Nestle’s Managers utilized promotions asmeasured to meet their sales target. Gradually, sales promotion became a crutch forMaggi noodles sales. Later many of the Maggi’s extensions also made considerable useof promotional schemes. The focus of all Maggi’s extensions was more on below the lineactivities rather than direct communication. In addition to promotional activities, Maggiassociated itself with main stream television programme and advertised heavily on kidsprogramme and channels. After its advertisements with taglines like “mummy bhookhlagi hai, bas do minute” and fast to cook good to eat Maggi’s popularity became highlyattributed to its “extremely high appeal to children”. As a result, Maggi’s annual growthreportedly touched 15% during its initial years.Projectsformba.blogspot.com 7
  • 8. Projectsformba.blogspot.comVARIOUS PRODUCTSThe product mix of Maggi is divided into various categories defined below. The companyhas launched various products under each category as mentioned below.1. Noodles • Maggi 2-Minute Noodle ( Masala , Chicken, Curry and Tomato) • Maggi Dal Atta Noodles ( Sambhar taste) • Vegetable Atta Maggi Noodles • Maggi Rice Noodles (Lemon Masala, Chilly Chow and Shahi Pulao) • Maggi Cuppa mania (Masala yo, Chilli chow yo)2. Sauces • Teekha masala • Tomoto chatpat • Imli khata mitha • Tomato ketchup • Hot and sweet • Tomato pudina • Ginger, Garlic & Coriander • Maggi Oriental Chilli Garlic • Ginger, Garlic & Coriander3. Maggi Pichko4. 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 VegetablesProjectsformba.blogspot.com 8
  • 9. Projectsformba.blogspot.com5.Maggi soup sanjivni • Amla • Badam • Spinach • Dal • Tomato6. Maggi bhuna masala • Bhuna masala for gravy dishes • Bhuna masala for vegetable dal7.Maggi magic cubes • Chicken • Vegetarian masalaProjectsformba.blogspot.com 9
  • 10. Projectsformba.blogspot.comTASTE AND PREFERENCES OF CONSUMERSHealth is the flavour of the season. Food companies in India are growing aware of theincreasingly 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 areactually re-marketing) with products that are healthy. Take for example Coke and Pepsi;both have already started looking into the non-carbonated drinks category section. Maggifirst introduced in the market Maggi Atta Noodles – which it claimed was a healthy foodas it was made of wheat flour followed by soups.Nestle India, in an effort to carry on with its trend of providing the Indian consumershealthy food recently introduced a range of Healthy Soups. The entire range consists ofthe 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 70grams.Maggi became successful because it understood consumers . The brand never wanted tochange Indian consumers habit. It did not had ambitions about changing Indiansbreakfast or dinner preferences. What Maggi did was to slowly attach itself to Indianconsumers need without disruption.Maggi was also closely watching consumer preferences.When consumers wanted healthyfood, Maggi launched Atta Noodle variants that was healthy . More importantly thismove addressed the concerns of Homemakers. The brand extended itself to multiplesegment but without diluting the core brand equity.Maggi over these years have made lot of mistakes. It made mistakes because the brandwas willing to experiment. More importantly the brand learned from those mistakes andcorrected itself.Maggi also invested heavily in brand building. The campaigns for one of Maggisproducts were always there in the media which kept the brand fresh in the mind of theconsumers. 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 manyyears and the secret to the success is that instead of trying to change the food habits ofconsumers, it has tried to align itself with local tastes and preferences with the ‘fast tocook and good to eat’ promise.To commemorate its successful journey through a quarter of a century in the world’slargest consumer market, the brand, last year, launched an innovative campaign invitingits loyalists to share with it their Maggi stories and promised to broadcast them to theProjectsformba.blogspot.com 10
  • 11. Projectsformba.blogspot.comworld at large, thereby, making them the superstars overnight. Along with televisioncommercials, which aired individual consumer stories of their lasting memories ofMaggi, the brand displayed pictures of these loyal customers on the Maggi packs. Nestlealso introduced a website Meandmerimaggi.in for engaging with them.The company also rewarded its consumers by adding to the Maggi portfolio, that hithertohad sauces and soups in various flavours, a range of prepared dishes and cooking aidssuch as Maggi Bhuna Masala and Maggi Pazzta. So far focussed on urban consumers, thecompany also made a pitch for rural consumers by launching Maggi Rasile Chownoodles at an inviting price of Rs4. Again, local tastes and recipes have been at the coreof 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.Projectsformba.blogspot.com 11
  • 12. Projectsformba.blogspot.comDEMOGRAPHY AND PSYCHOGRAPHY OFCONSUMERSDemography:- 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 theproduct 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 aconsumer leads his life. Maggi products are consumed by all.Projectsformba.blogspot.com 12
  • 13. Projectsformba.blogspot.comMARKET SHARE Maggis Market Share in Ketchup Category Maggi has a 45% Maggi 55% Othersmarket share of 45% which is a high percentage. It dominates the market in theketchup segment.Projectsformba.blogspot.com 13
  • 14. Projectsformba.blogspot.com Maggis Market Share in Noodles Category 20% Maggi Others 80%Maggi has a market share of as high as 80% in the noodles segment. Itdominates the market. It is the leader in this segment.SWOT ANALYSIS OF MAGGI BRANDProjectsformba.blogspot.com 14
  • 15. Projectsformba.blogspot.comThe SWOT analysis of Maggi brand clearly indicates the strengths of Maggi as a Brandin Indian market. The Brand was found to be a leader in its category of Noodles, withstrong customer loyalty. Intensive distribution of Maggi as a Brand was seen in urbanareas of the country. The major threats of the brand as shown in the figure belowindicates 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 inthe growth stage of product life cycle with a strong inclination towards the maturitystage. STRENGTH WEAKNESS Market leader in their segment Product are dependent on each Strong brand loyal consumer base other Wide range of distribution channel Not so much presence in rural Product according to the need of market Indian consumer Innovative Product SWOT ANALYSIS OPPORTUNITY THREAT Increasing number of working youth Price war with competitors. Product has been acceptable in youth Strong presence of regional category competitors Shift to rural market Consumers don’t perceive it as Changing preference of consumer a “Healthy Product” towards Chinese food and fast food. Can foray into other food markets with its strong Brand nameRESEARCH METHODOLOGY:-Projectsformba.blogspot.com 15
  • 16. Projectsformba.blogspot.comOBJECTIVES OF QUESTIONNAIRE  To understand the influence of Maggi as a brand on consumers mind set.  Sources of Brand equity of Maggi like Brand awareness, Brand image, Brand association, Brand recall.  To understand the Brand performance of Maggi products.  To understand Brand Imagery, Brand Quality perceived by customers, Brand credibility, consideration, superiority and feelings.  To know the medium of media through which they became aware of Maggi.METHOLODOGYProjectsformba.blogspot.com 16
  • 17. Projectsformba.blogspot.comThe research will be carried out in the form of a survey. This will include primaryresearch in addition to secondary research as stated below. The survey research methodwill be descriptive research design. Each respondent will be interviewed through aQuestionnaire. The sample will be selected by a simple random sampling method.The survey will address the following information area:Information Areas:The objective as spelt out can be elaborated into specific information areas to be studied.  How do customers perceive Maggi as a stable brand, their perception of noodles and how do they associate themselves with Maggi?  Are the consumers aware of Maggi Brand or they associate noodles with some other brand?  Which product from the entire basket of Maggi products do the consumers consider as the best selling product for Maggi and to which the consumers frequently buy?  Are the consumers willing to accept Maggi brand extensions to some other products like chocolate, juices, chips etc?QUESTIONNAIREProjectsformba.blogspot.com 17
  • 18. Projectsformba.blogspot.comQ 1) Are you a consumer of Maggi? □ Yes □ NoQ 2) What comes first in your mind when you hear the word Maggi ? • Noodles • Fast food • Snacks • None of theseQ 3) what is the brand that comes to your mind when we say the word noodles? • Maggi • Top Ramen • Surya Noodles • Anil NoodlesQ 4) Rank the following Maggi products w.r.t. frequency of purchase with 1 being thehighest rank RANK • Noodles _________ • Ketchup _________ • Soup _________ • Pickles _________ • Cubes _________Q 5) With what products would you associate the brand Maggi? • Ketchup • Noodles • Soup • MasalaQ 6) On a scale of 1 to 5 rate Maggi on the following parameters • Taste ____________ • Variety/Flavours ____________ • Hygiene/Purity ____________ • Availability ____________ • Packaging (SKUs) ____________Q 7) Rank the categories which Maggi should look in future in order of your importance :Projectsformba.blogspot.com 18
  • 19. Projectsformba.blogspot.com • Chocolates _____________ • Salted Potato Chips _____________ • Fruit Juices _____________ • Processed foods(Ready to use pastes, masalas) ____________ • Others ( Please mention) _____________Q 8) How do you perceive Maggi products? • Good for health. • Ready to eat. • Junk food • Tasty / Fun eatingQ 9) Which Maggi products in noodles category do you regularly buy? (Repositioningawareness) • Maggi masala • Maggi vegetable atta noodles • Maggi dal atta noodles • Maggi rice noodles mania • OthersQ 10) You came to know about Maggi from: • Newspapers • Radio • T.V advertisements • Word of mouth • Other sourceProjectsformba.blogspot.com 19
  • 20. Projectsformba.blogspot.comQ 11) Do you remember any of the T.V. advertisements of Maggi Tomato Ketchup?□ Yes □ NoQ 12) Do you perceive Maggi noodles as a healthy product? • Yes • NoQ 13) If No then your suggestions for improvement as a healthy product?_________________________________________________ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _Projectsformba.blogspot.com 20
  • 21. Projectsformba.blogspot.comANALYSIS OF THE QUESTIONNAIREQ 1) Are you a consumer of Maggi? □ Yes □ NoAnalysis: The survey suggested that out of 20 consumers all 20 are consumers of maggiproducts. Maggi is quite famous with the different types of consumers in the market. Oursurvey took the sample of consumers in general.Q 2) What comes first in your mind when you hear the word Maggi ? • Noodles • Fast food • Snacks • None of these Analysis: The survey suggested that 14 out of 20 consumers associated maggi with noodles. 3 for snacks and masala each. People are familiar with maggi as a brand for noodles in majority.Q 3) what is the brand that comes to your mind when we say the word noodles? • Maggi • Top Ramen • Surya Noodles • Anil Noodles Analysis: The survey suggested that Maggi is the most popular brand with consumers of noodles. It suggests that 18 out of 20 consumers associate noodles with maggi.Projectsformba.blogspot.com 21
  • 22. Projectsformba.blogspot.comQ 4) Rank the following Maggi products w.r.t. frequency of purchase with 1 being thehighest rank RANK • Noodles _________ • Ketchup _________ • Soup _________ • Pickles _________ • Cubes _________Analysis: Most of the consumers have ranked noodles as 1. People purchase magginoodles in majority. The frequency of the purchase of maggi noodles is high.Q 5) With what products would you associate the brand Maggi? • Ketchup • Noodles • Soup • MasalaAnalysis: The survey suggested that 12 out of 20 people associated the brand maggi withnoodles. 6 consumers associated it with masala. 2 consumers associate the brand withsoup and 1 with ketchup.Q 6) On a scale of 1 to 5 rate Maggi on the following parameters • Taste ____________ • Variety/Flavours ____________ • Hygiene/Purity ____________ • Availability ____________ • Packaging (SKUs) ____________Analysis: The products of maggi have been rated well above 3 in the above parametersby most of the consumers.Projectsformba.blogspot.com 22
  • 23. Projectsformba.blogspot.comQ 7) 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, masalas) ____________ • Others ( Please mention) _____________Analysis: According to the survey, maggi should look for salted potato chips in future asit is highly demanded by the people in the market.Q 8) How do you perceive Maggi products? • Good for health. • Ready to eat. • Junk food • Tasty / Fun eatingAnalysis: The survey suggests that most of the consumers perceive maggi products asbeing good for health.Q 9) Which Maggi products in noodles category do you regularly buy? (Repositioningawareness) • Maggi masala • Maggi vegetable atta noodles • Maggi dal atta noodles • Maggi rice noodles maniaProjectsformba.blogspot.com 23
  • 24. Projectsformba.blogspot.com • Others Analysis: The survey suggested that most of the consumers regularly buy maggi vegetable atta noodles while a few of them preferred maggi masala noodles.Q 10) You came to know about Maggi from: • Newspapers • Radio • T.V advertisements • Word of mouth • Other sourceAnalysis: The survey suggested that a majority of the people came to know about maggithrough television advertisements. Maggi advertisements are quite famous with theconsumers.Q 11) Do you remember any of the T.V. advertisements of Maggi Tomato Ketchup?□ Yes □ NoAnalysis: The survey suggested that the advertisement of maggi tomato ketchup isremembered by the consumers. 12 out of 20 consumers remember the advertisement oftomato ketchup.Q 12) Do you perceive Maggi noodles as a healthy product? • Yes • NoAnalysis: The survey suggested that majority of the consumers perceive maggi noodles asa healthy product. The survey suggests that 20 out of 20 consumers perceive magginoodles as a healthy product.Projectsformba.blogspot.com 24
  • 25. Projectsformba.blogspot.comQ 13) If No then your suggestions for improvement as a healthy product?_________________________________________________ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _Analysis: The survey suggests that 20 out of 20 consumers perceive maggi noodles as ahealthy product and need no improvement as a healthy product.Projectsformba.blogspot.com 25
  • 26. Projectsformba.blogspot.comProjectsformba.blogspot.com 26
  • 27. Projectsformba.blogspot.com BIBLIOGRAPHY www.google.com www.wikipedia.comProjectsformba.blogspot.com 27
  • 28. Projectsformba.blogspot.comProjectsformba.blogspot.com 28