Submitted in Partial Fulfillment of Master of Business Administration Programme INTERNATIONAL INSTITUTE OF BUSINESS STUDIES Under supervision Submitted by:-SHOBHA DEVI PRIYANKA SINGH(MGT.LECTURER) BHU-S-11 SEC-C
CertificateThis is to certify that Miss.PRIYANKA SINGH student ofMBA-2nd Semester has completed her Research ProjectReport titled “’A study on the customer satisfaction towards(MAGGI NOODLES) in Bangalore city’’.assigned by Me andunder my Supervision.It is further certified that he has personally prepared thisreport that is the result of his personal survey/observation. Itis of the standard expected of MBA student and hencerecommended for evaluation. Supervisor (Mrs. Shobha devi )Above statement is endorsed.
AcknowledgementBehind every study there stands a myriad of people whose help andcontribution make it successful. Since such a list will be a prohibitivelylong. I may be excused for important omissions.I hereby regard our sincere thanks to Prof. Shobha devi of IIBSBangalore,under whose guidance this project was undertaken.Iwould like to thank our friends for their generous support and therespondents who gave her valuable piece of time for participating inthe survey to complete the study.. This research was a good exposure that will definitely help me in myprofessional career.
Table of contentAcknowledgementIntroductionProduct profileProduct mixOrganisation structureDefinition of marketMeaning of marketConsumer decision making modelMarket shareResearch methodologyAnalysis and interpretationSwot analysisQuestionnaireConclusion and suggestionBibliography
INTRODUCTION ABOUT COMPANYNIL introduced the Maggi brand to Indian consumers when it launched Maggi 2Minute Noodles, an instant food product, in 1982 (Refer to Exhibit III for the historyof the Maggi brand). At that time, Indian consumers were rather conservative in theirfood habits, preferring to eat traditional Indian dishes rather than canned or packagedfood. In fact, NIL was trying to create an entirely new food category, instant noodles,in India. Initially, the company targeted working women on the premise that Magginoodles were fast to cook and hence offered convenience.However, this approach failed as was evident from the fact that the sales of Magginoodles were not picking up despite heavy media advertising. To get to the root of theproblem, NIL conducted a research, which revealed that it was children who liked thetaste of Maggi noodles and who were the largest consumers of the product. After this,NIL shifted its focus from working women and targeted children and their mothersthrough its marketing. NILs promotions positioned the noodles as a convenienceproduct, for mothers and as a fun product for children. The noodles tagline, Fast toCook Good to Eat was also in keeping with this positioning.NIL aggressively promoted Maggi noodles through several schemes like distributingfree samples, giving gifts on the return of empty packs, etc. NILs advertising tooplayed a great role in communicating the benefits of the product to target consumers.Through its ads, NIL positioned Maggi as a fun food for kids which mothers couldprepare easily. Taglines like Mummy, bhookh lagi hai (Mom, Im hungry), Bas 2-Minute, (Only 2 minutes) and Fast to Cook Good to Eat effectively communicatedthe products benefits to target consumers.These ads had become so popular that the tagline Bas 2-Minute immediatelyreminded Indian consumers of Maggi noodles even several years after the ads weretaken off the TV. Maggis first product extension was Maggi instant soups launched in1988. With the launch of Maggi soups, NIL had become a pioneer in the organizedpackaged soup market in India.
Product profile Type -- Aktiengesellschaft; subsidiary of NESTLE Industry--- Food Founded ----1890 Founder(s) --Julius Maggi Headquarters --Cham, Switzerland Key people -- Alain PedersenMaggi noodles is a brand of instant noodles manufactured by Nestlé. The brandis popular in Australia, India, South Africa, Brazil, NewZealand, Brunei, Malaysia, Singapore, Sri Lanka, Bangladesh,Pakistan, Fiji andthe Philippines. In several countries, it is also known as "maggi mee" (mee isIndonesian/Malay/Hokkien for noodles). Maggi noodles are part ofthe Maggi family, a Nestlé brand of instant soups, stocks, and noodles.In Malaysia, there are fried noodles made from maggi noodles known as Maggigoreng. Maggi noodles recently introduced a new variety of its noodles, to caterfor the health conscious like No MSG, Less Salt, and No Trans fat. Awholewheat flour based noodle variation marketed by the name "Vegetable AttaNoodles" has been introduced in India (Atta flouris used in preparing most formsof wheat based breads in India) and caters to health conscious buyers wary of therefined flour used in the regular Maggi noodles. This move helps the brand inIndia as suburban mothers, who feed the noodles to children as an afterschool
snack, are the primary customers of the brand. Recently, a line of ricenoodles and whole wheat with pulses, carrots, beans, and onions has also beenintroduced in India. In fact, "Maggi" has become a well-known brand for instantnoodles in India and Malaysia. Product mix of maggi
Organizational structureKey people----Peter Brabeck-Letmathe(Chairman), Paul Bulcke (CEO)
Definition of MarketingThe following definitions were approved by the American MarketingAssociation Board of Directors:Marketing is the activity, set of institutions, and processes for creating,communicating, delivering, and exchanging offerings that have value forcustomers, clients, partners, and society at large. (Approved October2007)Marketing Research:Marketing research is the function that links the consumer, customer,and public to the marketer through information--information used toidentify and define marketing opportunities and problems; generate,refine, and evaluate marketing actions; monitor marketing performance;and improve understanding of marketing as a process. Marketingresearch specifies the information required to address these issues,designs the method for collecting information, manages and implementsthe data collection process, analyzes the results, and communicates thefindings and their implications. (Approved October 2004) MEANING OF MARKETINGMarketing is defined by the AMA as "the activity, set of institutions, andprocesses for creating, communicating, delivering, and exchanging offeringsthat have value for customers, clients, partners, and society at large."--Marketing is the activity, set of institutions, and processes for creating,communicating, delivering, and exchanging offerings that have value forcustomers, clients, partners, and society at large. -It is a process by which-one identifies the needs and wants of the people.- One determines and creates a product/service to meet the needsand wants. [PRODUCT]- one determines a way of taking the product/service to the marketplace. [PLACE]-one determines the way of communicating the product to themarket place. [PROMOTIONS]-one determines the value for the product.[PRICE].
-one determines the people, who have needs/ wants. [PEOPLE]and then creating a transaction for exchanging the product fora value.and thus creating a satisfaction to the buyers needs/wants.Consumer Decision making Process Internal and External Influences ofMaggi NoddlesConsumer Decision Making Process, this basic psychological processplays an important role in understanding how consumers actually maketheir buying decision. Marketers must understand every facet ofconsumer behaviour in terms of “who, what, when, where, how andwhy”. Smart companies like MAGGI try to fully understand theconsumer‟s buying decision process – all their experiences in learning,choosing and using of the product.Maggi has always considered the following steps:1 Problem RecognitionThis is the first stage of the Buying Decision where the buyer recognizesa problem or need. The need can be triggered by internal or externalstimuli which a marketer must identify by gathering information fromnumber of consumers. They can then develop marketing strategies thattrigger consumer interest.Nestle after carefully analyzing the market, identified the need for aquick snack in India. They adopted the first mover strategy andlaunched Maggi in India in the year 1982 as an instant fast food.Thereafter, Nestle recognized the consumer’s need for Maggi indifferent sizes and introduced the 50gms, Double Pack and SuperSaver Pack (s).Later on in the years 2005 and then 2006, consumer’s need for ahealthy instant food was catered by launching Maggi Atta Noodlesand Maggi Dal Noodles. These again emerged as successful products andwere widely accepted by masses.Further to suffice the need for different taste, Maggi Rice Mania wasbrought in the market in Shahi Pulao, Chilli Chao and Lemon Masalaflavors.2 Information Search
An aroused customer will be inclined to search for more information. Atthis level, a person simply becomes more receptive to information abouta product. There are four major information sources which are of keyinterest to the marketer. These are the personal sources (family, friends,and acquaintances), commercial sources (advertising, websites,packaging and displays), public sources (mass media, consumer ratingorganizations) and experiential sources (handling, examining and usingthe product).MAGGI has over the years well established itself in the market and hasnow become a household name. This has helped the brand gainpopularity through word of mouth.Maggi‟s Mass Advertising Campaigns targeted consumers of all ages.Their advertisements have highlighted that Maggi is a good alternativeavailable with the consumers when it comes to having a quick snack.3 Evaluation of AlternativeOnce all the consumers gather all the information he then evaluates thevarious option available to him. When evaluating the potentialalternatives, consumer uses two types of information the first is the “list”of brands from which they plan to make their selection and the second isthe criteria from which they plan to make their decision.Beliefs and Attitude: Evaluations often reflects beliefs and attitudes.And these are acquired by experiences and learnings.MAGGI has always provided its consumers with something new fromtime to time which has developed a good belief in the brand and thus hashelped them to choose them from their other alternatives. Theircompetitors like top ramen always find it difficult on the evaluation frontwith magi because of strong association of consumers with it.Awareness set is Maggi Tom Ramen Wai Wai Cup of Noodles Chings
So out of the above awareness set the consumers decides to chooseMaggi because after analyzing the different parameters of the brandMaggi was chosen as the best alternative among the rest leading to itsmaximum market share.4 Purchase DecisionIn the evaluation stage the consumer forms preferences among thebrands in the choice set, the consumer may also form an intention to buythe most preferred brand .In executing a preferred intention theconsumer takes up five sub decisions Brand Dealer Quantity Timing Payment MethodIn some cases consumer may decide not to formerly evaluate each andevery brand; in other cases intervening factors may affect the finaldecision.Because of the strong consumer awareness about the brand MAGGI,consumer generally prefer Maggi out of all the available brands , due tothe mass distribution strategy adopted by Maggi, any consumer caneasily purchase it from their local grocery store without wasting much ofhis/her time in searching for the product , Maggi comes in various sizeslike single , double and the supersaver packs so depending upon eachindividuals need Maggi is catering each and every segment of the societynot to mention that as the size increase the saving on each packincreases.5 Post PurchaseAfter the purchase the consumer might experience dissonance that stemsfrom noticing certain disquieting features or hearing favorable thingsabout other brands and will be alert to information that supports his/herdecision. Marketer must monitor
Post Purchase Satisfaction Post Purchase Action Post Purchase Product Uses6 Post Purchase SatisfactionSatisfaction is a function of the closeness between expectations and theproduct‟s perceived performance, if performance falls short ofexpectations the consumer is disappointed and if it meets theexpectation the consumer is satisfied and if it exceeds the expectationsthen the consumer is delighted.7 Post Purchase ActionsSatisfaction or dissatisfaction with the product will influence subsequentbehavior if the consumer is satisfied he will exhibit a higher probabilityof purchasing the product again. The satisfied customer will also tends tosay good things about the brand to others, marketers says “our bestadvertisement is the satisfied customer”.Post Purchase UseMarketer should also monitor how buyers use and dispose of theproduct. A key driver of sales frequency is product consumption rate –the more quickly buyers consume a product the sooner they may be backin the market to repurchase it.Call a small fraction of it the next day. RESEARCH METHODOLOGY OBJECTIVES of study To understand the influence of Maggi as a brand on consumers mind set. Sources of Brand equity of Maggi like Brand awaren e s s , B r a n d i m a g e , B r a n d association, Brand recall
To understand the Brand performance of Maggi products. To understand Brand Imagery, Brand Quality percei ved by customers, brand credibility, consideration, superiority and feelings. Brand Extension of Maggi in terms of product diversity. Analyse the repositioning of Maggi brand as a “Healthy product” and the consumer perseverance towards the same. .Market shareMaggi noodles: MAGGI NODLES maggi others 20% 80% RESEARCH PLAN Research Design:A research design is the arrangement of condition s for collection and analysisof data in manner that aims to combined relevance to the research to theresearch purpose with economy in procedure.
A research design is the specification of methods and procedures for acquiringthe needed information. It is overall operational pattern or framework of theproject that stipulates what information is to be collected from which sourceby what procedure.There are three types of objectives in a marketing research project:- Exploratory Research. Descriptive Research. Casual Research. 1. Exploratory Research:- The objective of exploratory research is to gather preliminary information that will help define problems and suggest hypothesis. 2. Descriptive Research:- The objective of descriptive research is to describe things, such as the market potential for a product or the demographics and attitudes of consumers who buy the product. 3. Casual Research:- The objective of casual research is to test hypothesis about casual and effect relationships.Based on the above definitions it can be established that this study is aDescriptive Research as the attitudes of the customers who buy the productshave been stated. Through this study we are trying to analyze the variousfactors that may be responsible for the preference of Coca-Cola products.
SOURCES OF DATAThe data has been collected from both primary as well as secondary sources.SECONDARY DATA:-It is defined as the data collected earlier for a purpose other than one currentlybeing pursued.As a researcher I have scanned lot of sources to get an access to secondarydata which have formed a reference base to compare the research findings.Secondary data in this study has provided an insight and forms an outline forthe core objectives established.The various sources of secondary data used for this study are:- News papers. Magazines. Text books. Marketing reports of the company. Internet. PRIMARY DATA:- The primary data has been collected simultaneously along with secondary data for meeting the established objectives to provide the solution for the problem identified in this study.The methods that have been used to collect the primary data are:- Questionnaire. Personal Interview. RESEARCH MEASURING TOOLS & TECHNIQUES
The primary tool for the data collection used in this study is the respondent’sresponse to the questionnaire given to them. The various research measuringtools used are:- Questionnaire. Personal interview. Tables. Percentages. Pie-charts. Bar-chart Sample Design:The target population for our study is households. The sample will be selected by a simple random sampling method Sample Size: The sampling unit is 150 which are divided as follows:Number of respondent 150Age group 10-40Monthly household income 25000-75000 kSurvey location BANGALORE ,KARNATAKA.
Salary group No 25k 40k 60k income 40k 60k 75kNumber of 30 50 70respondentsAge group 10-25 25-35 35-45Number of respondents 50 50 50 DATA COLLECTION PLAN Data Gathering: This study involves data collection (primary research) from different households in Bangalore.Literature ReviewThe research conducted as a part of our study would include Primary aswell as Secondary research. Primary research would include asurvey that would be conducted in selected localities of Delhi andnearby areas where the responses of consumers would be recordedthrough a designed questionnaire . Secondary research would includevarious aspects of Brand management through Internet , Journals,company reports , expert views etc.
METHOLODOGYThe research will be carried out in the form of a survey. This will includeprimary researchinaddition to secondary research as stated below. The surveyresearch method will bedescriptive research design. Eachrespondent will be interviewed through a Questionnaire.Thesample will be selected by a simple random sampling method.The surveywill 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 andhow do they associate themselves with Maggi? Are the consumers aware of Maggi Brand or they associate noodles with some other brand? Do they consider noodle as a healthy product or they are aware of the company‟sstrategy of repositioning it to a healthy product by the launch of some of the newproducts? Which product from the entire basket of Maggi products do the consumers consider asthe best selling product for Maggi and to which the consumers frequently buy? Are the consumers willing to accept Maggi brand extensions to some other productslike chocolate, juices, chips etc? Analysis and interpretation
Brand Associations:Sources of Brand equity like brand association of Maggi as a Brand wasfound highest with the age group of 10-25 and the product categoryassociated with it was the noodles category( see exhibit 1).Consumers in the age segment of 10 -25 could easily relateMaggi to noodles. In the income wise category the brand associationwas highest with the income group of 25k-40k. The implications fromthe findings discussed above seem that Maggi has good brandassociation in terms of noodles. Consumers presume Maggi as Noodlesand the company‟s philosophy of projecting the brand as noodles brandseem to be viable in this regard.Brand association (age wise) 45 40 35 30 25 10yrs-25yrs 20 25yrs-35yrs 15 35yrs-45yrs 10 5 0 Noodles Fast Food Snaks None of theseBrand Recall:From the graph given below it seems a clear trend that Maggi has a goodbrand recall as compared to its competitors like Top Ramen, Surya
noodles, Reliance noodles etc. Consumers could easily associate Maggiwith noodles. In the Age wise category, the respondents of the age groupof 25-45 were highly cautious of Maggi brand and seemed to beconsuming Maggi more as compared to other age segments. Brand Recall (age wise) 50 45 40 35 30 10yrs-25yrs 25 20 25yrs-35yrs 15 35yrs-45yrs 10 5 0 Maggi Top Ramen Reliance YipeeRepositioning Maggi as a healthy product:The company‟s strategy to reposition Maggi as a “Healthy product” wasnot found conducive as per the survey results. The survey showed thatconsumers did not perceived Maggi as a healthy product with 53% ofthem consumed Maggi‟s traditional products as compared to therest who consumed other variants of Maggi‟s brand that werepositioned as “Healthy products”. From the pie chart given belowit can be clearly seen that Maggi is still perceived as a non healthyproducts by the consumers and in spite of the efforts to position Maggias a healthy product by the company the brand is still perceived as a
“ready to eat” food brand that has a high market share in the noodlecategory in India. Repositioning Awareness Maggi vegitable atta noodles 23% Maggi Masala (Regular) 53% Maggi dal atta noodles 14% Maggi Mania 7% Other 3% SWOT ANALYSIS OF MAGGI BRANDThe SWOT analysis of Maggi brand clearly indicates the strengthsof Maggi as a Brand inIndian market. The Brand was found to be a leader in its category of Noodles, with strongcustomer loyalty. Intensive distribution of Maggi as a Brand was seen in urban areas of thecountry. The major threats of the brand as shown in the figure below indicates that Maggi hasmade several attempts to revamp itself asa „Healthy Product” but till date its perseverancetowards the tag line is low by the consumers. The brand is in the growth stage of product lifecycle with a strong inclination towards the maturity stage.
strength market leaders in their segment strong brand loyal oonsumer base wide range of distribution channel product according to the need of indian consumer innovative product. threats weakness price war with competitors strongpresence of regional swot product are dependent on each other not so much analysiscompetitors.consum presence in rural er dont perceive it market. as a healthy product. opportunity increasing number of working youth product has been acceptable in youth category.
QuestionnaireQ-1 what product would you associate with the tag line mentionedbelow?•Its different. …………………………………………………………………..•Don’t be a noodle, be a snoodle……………………………………………….•2 minute noodles/ Bas 2 minute……………………………………………….•Jitna tasty, utna healthy………………………………………………………..•Mummy bhook lagi ……………………………………………………………•Try it with a twist ……………………………………………………………..•Hearty soups warm you from inside …………………………………………..•Fast to cook, Good to eat ………………………………………………………Q-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 wordnoodles?•Maggi•Top Ramen•Surya Noodles•Anil NoodlesQ-4 Rank the following Maggi products w.r.t. frequency of purchase with1 being the highestrank RANK•N o o d le s _ _ __ _ _ _ __•K e t cK e t c hu p _ _ __ _ _ _ __•S o u p_ _ _ _
_ _ _ __•P i c k le s _ _ __ _ _ _ __•C u b es _ _ __ _ _ __ _Q-4 With what products would you associate the brand Maggi?•Ketchup•Noodles•Soup•MasalaQ-5 On a scale of 1 to 5 rate Maggi on the following parameters•T a s t e _ _ _ _ _ __ _ _ _ _ _•V a r i e t y / F l a vo u r s _ _ _ _ _ _ _ __ _ _ _•H y g i e n e / P ur i t y _ _ _ _ _ __ _ _ _ _ _•A v a i l a b i li t y _ _ _ _ _ __ _ _ _ _ _P a c k a g i n g ( SK U s ) _ _ _ _ _ _ _ __ _ _ _Q6 Rank the categories which Maggi should look in future in order ofyour importance :•Chocolates _____________•Salted Potato Chips _____________
•Fruit Juices _____________•Processed foods(Ready to use pastes, masalas) ____________•Others ( Please mention) _____________ Q-7 how do you rate Maggibrand in terms of following parameters:•Expertise (Competent, Innovative, Market leader)•Trustworthiness (Dependable and keep customers interest in mind)•Liability ( Fun ,interesting)•None of theseQ-8 How do you perceive Maggi products? Good for health Ready to eat. Junk foodTasty / Fun eatingQ9 Which Maggi products in noodles category do you regularly buy? (Repositioning awareness)•Maggi masala•Maggi vegetable atta noodles•Maggi dal atta noodles•Maggi rice noodles maniaQ-10 Do you perceive Maggi noodles as a healthy product?•Yes•NOQ-11If No then your suggestions for improvement as a healthy product? _ _ ______________________________________________ _________________________________ _ _ _ _ _ _ _ _ _ _ _ _ _ _
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 then 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 didn‟t 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. When Nestle changed theformulation of its tastemaker, the ominous packet that came along with Maggi Noodles, a major chunk of consumers were put-off and sales started dropping.Also,Maggi‟s competitor „TopRamen‟ took advantage of the sit uation and started a parallelaggressive campaign to eat into Maggi‟s market share. But the company quickly realised this and went back into making the original formula coupled with a free samplingcampaign. This helped Maggi to win back its lost consumers and pushed up its sales volumes again.
SUGGESTIONAfter the conducted study following recommendations could be sited for Maggi Brand. - To gain maximum leverage in terms of profit the company should pay emphasiso n s e g m e n t s w i t h a g e g r o u p s 2 5 - 3 5 a n d a b o v e . A d v e r t i s i n g i s t h e k e y t o success. Targeting these segments will not only enhance the company‟s profitmargins but also it will leverage the brand image of Maggi. - The company should advertise its products by depicting attributes related toH e a l t h l i k e N u t r i t i o n v a l u e s , % o f V i t a m i n s , P r o t e i n s e t c . T h i s w o u l d h e l p i n customers perceiving the product as Healthy. -Foray into other food products like chips, chocolates etc underits sole brandname would not only help in Brand extension but will also enhance Maggi‟s market share. BIBLIOGRAPHYBOOKS: Marketing Management – Kotler Philip. Research Methodology – Kothari. WWW.GOOGLE.COM www.nestle.com Journals Magazines