AMITY UNIVERSITY JHARKHAND, RANCHI

A
Term paper Report
On
Consumers buying behaviour towards Maggi and other noodle
brand

SUBMITTED BY:
SAQUIB SAJJAD
A35101918013
M.B.A. (2018-20)

Under the Guidance of Mrs. Harmeet Kaur. PROFESSOR AMITY

UNIVERSITY, JHARKHAND

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A project report on consumer buying
behaviour towards

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BONAFIDE CERTIFICATE

Certified that seminar work entitled “CONSUMER BUYING BHAVIOUR

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

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

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Declaration by Student

I the undersigned solemnly declare that the project report CONSUMER BUYING
BEHAVIOUR TOWARDS MAGGI AND OTHER NOODLE BRANDS”
is based on my own work carried out during the course of our study under the
supervision of Mrs. Harmeet Kaur.

I assert the statements made and conclusions drawn are an outcome of my research work.
I further certify that:-

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

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

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ACKNOWLEDGEMENT

I have taken efforts in this Seminar report. However, it would not have been possible
without the kind support and help of many individuals and organizations. I would like
to extend my sincere thanks to all of them.
I am highly indebted to Mrs. Harmeet Kaur for their guidance and
constant supervision as well as for providing necessary information regarding the
project & also for their support in completing the project.

I would like to express my gratitude towards my parents & member of “AMITY BUSINESS
SCHOOL” campus of “AMITY UNIVERSITY, JHARKHAND” for their kind
co-operation and encouragement which help me in completion of this project.
I would like to express my special gratitude and thanks to my all faculties for giving me
such attention and time.
My thanks and appreciations also go to my colleague in developing the project and people
who have willingly helped me out with their abilities.

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INDEX
SERIAL NO NAME PAGE NO

1 Executive summery 7

2 8-14
Introduction

3 15-35
Strategic analysis of Maggi (Company
Profile)

4 36-37
RESEARCH METHODOLOGY

5 38-45
Survey Results

6 SUGGESTIONS AND CONCLUSION 46-47

7 Bibliography 49-50

8 Annexure 51-52

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EXECUTIVE SUMMERY

The report entitled ―A study of consumer buying behavior towards Maggi

and other noodles deals with the study of Maggi brand that was launched in
India in the year 1983, by Nestle India Limited. This research paper tries to find
consumer buying behavior towards these products. This research paper also finds the
reach of Maggi. It describes the level of involvement and types of consumer problem
solving process. This research will also explain how situational influences may affect
the consumer buying decision process. Understand the psychological inf luences that
may affect the consumer buying decision process.

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INTRODUCTION
CONSUMER BUYING BEHAVIOUR :

All marketing starts with the consumer. So consumer is a very important person to a
marketer. Consumer decides what to purchase, for whom to purchase, why to
purchase, from where to purchase, and how much to purchase. In order to become a
successful marketer, he must know the liking or disliking of the customers. He must
also know the time and the quantity of goods and services, a consumer may
purchase, so that he may store the goods or provide the services according to the
likings of the consumers. Gone are the days when the concept of market was let the
buyer‘s beware or when the market was mainly the seller‘s market. Now the whole
concept of consumer‘s sovereignty prevails. The manufacturers produce and the
sellers sell whatever the consumer likes. In this sense, ―consumer is the supreme in
the market.

As consumers, we play a very vital role in the health of the economy local, national or
international. The decision we make concerning our consumption behavior affect the
demand for the basic raw materials, for the transportation, for the banking, for the
production; they effect the employment of workers and deployment of resources and
success of some industries and failures of others. Thus marketer must understand
this. The consumer behavior suggest how individual, groups and organization select,
buy, use and dispose of goods, services, ideas or experience to satisfy their needs and
wants. It also clues for improving or introducing products or services, setting price,
devising channels etc. Since liberalization 100% FDI is allowed in India. This has
attracted foreign companies to penetrate the Indian market. The marketers always
look for emergent trends that suggest new.

As a consumer we are all unique and this uniqueness is reflected in the consumption
pattern and process purchase. The study of consumer behaviour provides us with
reasons why consumers differ from one another in buying using products and
services. We receive stimuli from the environment and the specifics of the marketing
strategies of different products and services, and responds to these stimuli in terms

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of either buying or not buying product. In between the stage of receiving the stimuli
and responding to it, the consumer goes through the process of making his decision.

CONSUMER BEHAVIOUR

Consumer behaviour is the study of how people buy, what they buy, when they buy
and why they buy. It is a subcategory of marketing that blends elements from
psychology, sociology, socio psychology, anthropology and economics. It attempts to
understand the buyer decision making process, both individually and in groups. It
studies characteristics of individual consumers such as demographics,
psychographics, and behavioural variables in an attempt to understand people's
wants. It also tries to assess influences on the consumer from groups such as family,
friends, reference groups, and society in general.

Consumption is the ―process of production, acquisition, utilization and destruction of

goods, services, experiences or places‖

Understanding Demographics -

1) Youth – 60% of India‘s teens stay in rural area.

2) Women – Only 23 % house wives in urban areas have jobs outside their homes

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STAGES OF CONSUMER BUYNG PROCESS

Six Stages to the Consumer Buying Decision Process (For complex decisions). Actual
purchasing is only one stage of the process. Not all decision processes lead to a
purchase. All consumer decisions do not always include all 6 stages, determined by
the degree of complexity...discussed next.

The 6 stages are:

1. Problem Recognition: The buying process starts with need or problem

recognition—the buyer recognizes a problem or need. The buyer senses a difference
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between his or her actual state and some desired state. The need can be triggered by
internal stimuli when one of the person's normal needs—hunger, thirst, sex—rises to
a level high enough to become a drive. A need can also be triggered by external
stimuli.

Hunger--Food. Hunger stimulates your need to eat. Can be stimulated by the

marketer through product information--did not know you were deficient? I.E., see a
commercial for a new pair of shoes, stimulates your recognition that you need a new
pair of shoes

At this stage, the marketer should research consumers to find out what kinds of
needs or problems arise, what brought them about, and how they led the consumer
to this particular product.

2. Information search— an aroused consumer may or may not search for more
information. If the consumer's drive is strong and a satisfying product is near at
hand, the consumer is likely to buy it then. If not, the consumer may store the need
in memory or undertake an information search related to the need. At one level, the
consumer may simply enter heightened attention.

The consumer can obtain information from any of several sources. These include
personal sources (family, friends, neighbors, acquaintances), commercial sources
(advertising, salespeople, dealers, packaging, displays, Web sites), public sources
(mass media, consumer-rating organizations), and experiential sources (handling,
examining, using the product). The relative influence of these information sources
varies with the product and the buyer. Generally, the consumer receives the most
information about a product from commercial sources—those controlled by the
marketer. The most effective sources, however, tend to be personal. Commercial
sources normally inform the buyer, but personal sources legitimize or evaluate
products for the buyer.

People often ask others—friends, relatives, acquaintances, professionals—for

recommendations concerning a product or service. Thus, companies have a strong
interest in building such word-of-mouth sources. These sources have two chief
advantages. First, they are convincing: Word of mouth is the only promotion method

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that is of consumers, by consumers, and for consumers. Having loyal, satisfied
customers that brag about doing business with you is the dream of every business
owner. Not only are satisfied customers repeating buyers, but they are also walking,
talking billboards for your business. Second, the costs are low. Keeping in touch with
satisfied customers and turning them into word-of-mouth advocates costs the
business relatively little.

A successful information search leaves a buyer with possible alternatives, the evoked
set. Hungry, want to go out and eat, evoked set is

Chinese food

Indian food

Burger king

3. Evaluation of Alternatives--need to establish criteria for evaluation, features

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

4. Purchase decision—In the evaluation stage, the consumer ranks brands and
forms purchase intentions. Generally, the consumer's purchase decision will be to
buy the most preferred brand, but two factors can come between the purchase
intention and the purchase decision. The first factor is the attitudes of others

The second factor is unexpected situational factors. The consumer may form a
purchase intention based on factors such as expected income, expected price, and
expected product benefits. However, unexpected events may change the purchase
intention.

5. Purchase--May differ from decision, time lapse between 4 & product availability

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6.Post-Purchase Evaluation--outcome: The marketer's job does not end when the
product is bought. After purchasing the product, the consumer will be satisfied or
dissatisfied and will engage in post purchase behavior of interest to the marketer. What
determines whether the buyer is satisfied or dissatisfied with a purchase? The answer lies
in the relationship between the consumer's expectations and the product's perceived
performance. If the product falls short of expectations, the consumer is disappointed; if it
meets expectations, the consumer is satisfied; if it exceeds expectations, the consumer is
delighted. The larger the gap between expectations and performance, the greater the
consumer's dissatisfaction. This suggests that sellers should make product claims that
faithfully represent the product's performance so that buyers are satisfied. Some sellers
might even understate performance levels to boost consumer satisfaction with the product.

Almost all major purchases result in cognitive dissonance, or discomfort caused by

post purchase conflict. After the purchase, consumers are satisfied with the benefits
of the chosen brand and are glad to avoid the drawbacks of the brands not bought.
However, every purchase involves compromise. Consumers feel uneasy about
acquiring the drawbacks of the chosen brand and about losing the benefits of the
brands not purchased. Thus, consumers feel at least some postpurchase dissonance
for every purchase.

Why is it so important to satisfy the customer? Such satisfaction is important

because a company's sales come from two basic groups—new customers and
retained customers. It usually costs more to attract new customers than to retain
current ones, and the best way to retain current customers is to keep them satisfied.
Customer satisfaction is a key to making lasting connections with consumers —to
keeping and growing consumers and reaping their customer lifetime value. Satisfied
customers buy a product again, talk favorably to others about the product, pay less
attention to competing brands and advertising, and buy other products from the
company. Many marketers go beyond merely meeting the expectations of
customers—they aim to delight the customer. A delighted customer is even more
likely to purchase again and to talk favorably about the product and company.

A dissatisfied consumer responds differently. Whereas, on average, a satisfied

customer tells 3 people about a good product experience, a dissatisfied customer

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gripes to 11 people. In fact, one study showed that 13 percent of the people who had a
problem with an organization complained about the company to more than 20
people. Clearly, bad word of mouth travels farther and faster than good word of
mouth and can quickly damage consumer attitudes about a company and its
products.

Therefore, a company would be wise to measure customer satisfaction regularly. It

cannot simply rely on dissatisfied customers to volunteer their complaints when they
are dissatisfied. Some 96 percent of unhappy customers never tell the company
about their problem. Companies should set up systems that encourage customers to
complain. In this way, the company can learn how well it is doing and how it can
improve

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MAGGI

INTRODUCTION

Ever since its launch in India in 1983, this brand has become synonymous with
noodles. The bright red and yellow colours of the packet with the brilliant blue ―2-
minute Noodles‖ printed on it has found a place on every kitchen. Over the years,
Maggi has grown as a brand and positioned itself as a ―Fast to cook! Good to Eat!
―Food product. The history of this brand traces back to the 19th century when
industrial revolution in Switzerland created factory jobs for women, who were
therefore left with very little time to prepare meals. Due to this growing problem
Swiss Public Welfare Society asked a miller named Julius Maggi to create a vegetable
food product that would be quick to prepare and easy to digest. Julius, the son of an
Italian immigrant came up with a formula to bring added taste to meals in 1863.
Soon after he was commissioned by the Swiss Public Welfare Society, he came up
with two instant pea soups & a bean soup- the first launch of Maggi brand of instant
foods in 1882-83.Towards the end of the century, Maggi company was producing not
just powdered soups, but bouillon cubes, sauces and other flavourings.

However in India (the largest consumer of Maggi noodles in the world!) it was
launched in 1980 by Nestle group of companies. Maggie had merged with Nestle
family in 1947. When launched it had to face a stiff competition from the ready to eat
snack segments like biscuits, wafers etc. Also it had other competitor the so called
home made snacks which are till today considered healthy and hygienic. Hence to
capture the market it was positioned as a hygienic homemade snack, a smart move.

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But still this didn‘t work, as it was targeted towards the wrong target group, the
working women. After conducting an extensive research, the firm found that the
children were the biggest consumers of Maggi noodles. Quickly a strategy was
developed to capture the kids segment with various tools of sales promotion like
pencils, fun books, Maggi clubs which worked wonders for it. No doubt the ads of
Maggi have shown a hungry kid saying ―Mummy bhookh lagi hai‖ to which his mom
replies ―Bas do minute!‖ and soon he is happily eating Maggie noodles. Further the
MAGGI 2-MINUTE Noodles has been renovated to provide 20% of the RDA1 of
Calcium and Protein for the core target group building on the nutrition proposition

―Taste bhi health bhi‖ . The company could have easily positioned the product as a
meal, but did not, as a study had shown that Indian mentality did not accept
anything other than rice or roti as meal. They made it an easy to cook snack that
could be prepared in just two minutes. The formula clicked well and Maggi became a
brand name

Nestlé‘s Maggie noodles are the leading brand in the instant noodles segment in
India, enjoying a market share of 79.3%. The brand has grown to an estimated Rs
200 crores & contributes to around 10% of Nestle India‘s top line. Being the pioneer
in the noodles market has given it a first mover‘s advantage over other brands. Maggi
has regularly come up with new flavours and has recently launched two variants -
Vegetable Atta and Dal Atta noodles, catering to the increasing demand for healthy
snacks.

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COMPANY PROFILE

NESTLE’
Nestle India

Nestle‘ India is a subsidiary of Nestle‘ S.A. of Switzerland. The company insists on

honesty, integrity and fairness in all aspects of its business and expects the same in
its relationships.

Nestle India- Presence across India

Beginning with its first investment in Moga in 1961, Nestlé‘s regular and substantial
investments established that it was here to stay. In 1967, Nestlé set up its next factory
at Choladi (Tamil Nadu) as a pilot plant to process the tea grown in the area into
soluble tea. The Nanjangud factory (Karnataka), became operational in 1989, the
Samalkha factory (Haryana), in 1993 and in 1995 and 1997, Nestlé commissioned
two factories in Goa at Ponda and Bicholim respectively. Nestlé India is now putting
up the 7th factory at Pant Nagar in Uttaranchal.

Nestle’ Story
Nestlé was founded in 1867 on the shores of Lake Geneva in Vevey, Switzerland and
its first product was ―Farine Lactée Nestlé‖ , an infant cereal specially formulated by
Henri Nestlé to provide and improve infant nutrition. From its first historic merger

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with the Anglo-Swiss Condensed Milk Company in 1905, Nestlé has grown to
become the world‘s largest and most diversified food Company, and is about
twice the size of its nearest competitor in the food and beverage sector.
Nestlé‘s trademark of birds in a nest, derived from Henri Nestlé‘s personal coat of
arms, evokes the values upon which he founded his Company. Namely, the values of
security, maternity and affection, nature and nourishment, family and tradition.
Today, it is not only the central element of Nestlé‘s corporate identity but serves to
define the Company‘s products, responsibilities, business practices, ethics and goals.
In 2004, Nestlé had around 247,000 employees worldwide, operated 500 factories in
approx. 100 countries and offered over 8,000 products to millions of consumers
universally. The Company‘s transparent business practices, pioneering environment
policy and respect for the fundamental values of different cultures have earned it an
enviable place in the countries it operates in. Nestlé‘s activities contribute to and
nurture the sustainable economic development of people, communities and nations.
Above all, Nestlé is dedicated to bringing the joy of ‗Good Food, Good Life‘ to people
throughout their lives, throughout the world.

Nestle’ Brands
Milk Products & Nutrition
Beverages
Prepared Dishes and Cooking Aids
Chocolates & Confectionary

A Maggi noodle is a brand of instant noodles manufactured by Nestlé. The brand

is popular in Australia, India, South Africa, Brazil, Nepal, New Zealand, Malaysia,
Singapore, Sri Lanka, Bangladesh, Pakistan, and the Philippines. In several
countries, it is also known as "Maggi mee" (mee is Indonesian/Malay for noodles).
Maggi noodles are part of the Maggi family, a Nestlé brand of instant soups, stocks,
and noodles. In Malaysia, there are fried noodles made from Maggi noodles known
as Maggi goreng. Maggi noodles recently introduced a new variety of its noodles, to
cater for the health conscious like 'No MSG', 'Less Salt', and 'No Trans fat'. Whole -
wheat flour based noodle variation marketed by the name "Vegetable Atta Noodles"
has been introduced in India (Atta flour is used in preparing most forms of wheat
based breads in India) and caters to health conscious buyers wary of the refined flour

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

Nestlé India Ltd (NIL) offered a variety of culinary products such as instant noodles,
soups, sauces and ketchups, cooking aids (seasonings), etc., under the Maggi brand
(Refer to Exhibit II for Maggi's product portfolio as of mid-2006). Of these, instant
noodles had been NIL's main product category in the culinary segment since the
launch of Maggi 2 Minute Noodles (Maggi noodles) in 1982. Over the years, Maggi
noodles became a popular snack food product in India.

In mid 2008, New Zealand supermarkets introduced replacement formulations for

its Beef, Oriental, and Curry flavours. A new feature is an extra sachet containing
dehydrated vegetables. Maggi claims the new range contains 88% less total fat and
86% less saturated fat than the average of top-three (unnamed) 2-minute-noodle
competitors. The new Maggi range also has considerably lower fat than its own
previous formulation. However, the salt content has been increased by 31 percent.
Consumers have not reacted well to the new formulations, complaining that they
want the original chicken flavour back Claimed to be "2 minute noodles", The Maggi
noodle cake and seasoning is added into boiling water for two minutes and it is ready
for consumption. Egg, seaweed, boiled vegetables or lemon can also be added to the
noodles for a better flavour.

Market Summary

TARGET MARKETS

Primary target: Children (<16)

Nestle plans to widen its target audience by launching new variants Vegetable and
Dal atta, Multi grain noodles for health conscious people.

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MARKET DEMOGRAPHICS

Demographics:

Region: urban, semi-urban, rural (recent)

Occupation: Housewives, working professionals, self-employed

Sex: Unisex

Income: 1, 20,000 p.a. upwards

Social class: Middle and upwards

Family life cycle: Young, single, married with children.

Behavioural:

Occasions: Regular, Everyday user-urban, rural-depends on the temporal aspects of

the consumer‘s life (varied usage in terms of time of time of day, week, month, year)

User status: first time user-rural, potential users-semi-urban, heavy users-urban

Usage rate: Heavy user-urban, light-rural, medium-semi-urban

Loyalty status: hard core and shifting loyal

Buyer-Readiness Stage: rural-some are aware, semi-urban: some intend to buy

(aware, informed), urban: informed (some desire, some intend to buy)

Attitude toward product: Enthusiastic, positive.

Psychographics:

Lifestyle: Hard pressed for time

CHILDREN

Children as an age group are a marketer‘s delight. With ―pester power‖ children play
a significant role in decision making and purchase choices of just about anything

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ranging from food items to beverages to chocolates. As consumers, children know
exactly what they want and do not experiment too much with flavour or colour.

Children rule

Indian families consider children to precious gifts of God, and parents in all income
groups do all they can for their offspring. Indian parents are still not completely
comfortable with paid baby sitters or day care help and use the larger extended
family or friends to help with care and supervision of children.

Rush for pre-school admissions

Throughout urban India, parents of nursery age children are looking to send them in
the best private school they can afford. Pre-schools for toddlers in the 2-3 age group
are mushrooming all over the country, as anxious parents recognise the perceived
benefits these can bring.

TEENAGERS

The teenager‘s age group consists of children on the threshold of adolescence and as
a segment are a difficult lot. Though they are not sure about their choices on an
emotional plane, they are a trendy new group that is extremely savvy and self assured
when it comes to taking decisions regarding consumer goods and wants. Urban
children in this age group would have some amount of pocket money with an upper
limit of Rs100 per month. Though allowances have gone up, parental control still
exists over this market segment. Impulse foods rule the preference scale as far as the
buying behaviour of teenagers in India is concerned.

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In fact, the top six expense items for teenagers seem to be impulse foods: 17% of the
total pocket money spent on ice creams, 12% on chocolates and 10% each on soft
drinks and fast food according to a newspaper report in the ―The Times of India‖ .

A key role to play in decision making

With increased awareness through television and advertising, teenagers are an

important influence on family decision-making in urban India. They have also
mastered the art of nagging their parents into making purchases of gadgets or
products that they want. Among the areas where they make their influence felt are
the purchase of such items as a newly launched chocolate bar, instant noodles and
breakfast cereal.

With a penchant for hi-tech and an ease with new technology far superior to their
parents, these teenagers are more familiar with operating mobile phones, the TV
remote, DVD player and computer programmes, as well as the product features.

Cricket-crazy boys

Cricket is the obsession and passion of boy teenagers in India. This interest cuts
across income and socio-economic groups. Low income boys will play on the streets

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with makeshift bats and stumps, middle-income children can be seen playing in
gardens and at school, while boys from more well-to-do families go and play in
organised coaching camps. With their education demanding less time at this age,
parents are generally quite happy to see their boys spending so much time on cricket

STUDYING AGE

A rise in the number of colleges and institutions of higher learning both government
owned and privately financed has enabled a larger number of youth to graduate from
their portals.

This population grew since 2000 but is set to stagnate in the forecast period with
couples actually postponing the child bearing decision and some even rejecting the
idea of having one at all. This age group has taken up to snacking as a way of life as
they keep missing regular meals due to erratic schedules. They have longer waking
hours and due to this the traditional three meals does not suffice with the need for
filling snacks.

Rising financial freedom

With growing aspirations on the academic front and shrinking global boundaries this
age group has an unquenchable thirst for information whether through their PCs or
cell phones.

With a rise in employment opportunities in the Business Process Outsourcing (BPO)

sector, more and more consumers in this age group are juggling jobs along with their
studies for the sake of the financial freedom it gives them.

Summer jobs

Until the 1990s, summer vacations were a time to relax, read and catch up with
friends. This is no longer the case. Now, teenagers either find a summer job, or
undertake activities such as a trek in the mountains, river rafting or rock climbing.
Summer jobs may cover a range of activities from delivering newspapers to working
in a restaurant

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YOUNG ADULTS

Young adults (15-29 years old) represent the largest spending segment in the
country. Youngsters are part of a middle-class boom in India. Of the US$30 billion
spent by Indians on themselves in 2003, young adults spent close to US$10.5 billion
with their spending levels.

Need for convenience

Many single working professionals have to live away rising 12% each year at twice the
pace of the economy‘s growth according to various trade press publications. Young
adults grew 8% in numbers over the 1999-2004 periods and are likely to grow at
approximately the same pace.

Rising disposable incomes

College graduates and students still studying are landing well-paying jobs in a host of

Emerging industries that barely existed at the start of the new millennium – retail
chains, fast food restaurants, mobile phone companies, call centres and data
processing firms. Many have access to disposable incomes of Rs8, 000-10,000 per
month thanks to the BPO boom in India.

This age group still does not have responsibilities of running a household, marriage
or worry about their children‘s education. Thus, this income is almost entirely spent
on non-essential items. Most purchases made by this age group are on impulse.
There are 16 million urban consumers in the 20-25 age groups. From their parents
due to the demand of the jobs. This yuppies (young upwardly mobile professionals)
class has a hard time preparing food and for them convenience is major issue. They
are ready to pay a premium for quality and convenience. Also always being on the
move they have a need for food item that can be easily consumed and disposed of

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MIDDLE-AGED ADULTS

These middle aged men have strict preferences over food and they generally stick to
their choices. They experiment less and go for products that will enhance their social
status. The women in this age group are ones who the primarily buy food items for

the entire household though their choices are shaped by the preferences of the
household members. The women in this segment play an important role as most of
the choices of food items have to pass their scrutiny before it is consumed in the
household.

Responsibilities

Between the ages of 45 and 55, men find themselves with children who are able to
leave school or facing crucial board examinations. Some may also have wives with
settled careers. These factors make them reluctant to leave or move from their city of
residence and they would rather resign and move to another job rather than displace
the family. Others find themselves redundant in the new hire and fire labour
environment. There is a trend for such people to enter the BPO sector as well

Mid-life career change

In urban India, among the middle class, there are a significant number of men who
are making career switches, some out of choice and others out of necessity. Tired of
their current salaried jobs, some are taking the entrepreneurial plunge, setting up
businesses such as small IT- service firms, adventure tourism companies or
leadership training consultancies.

PENSIONERS

In the 1950s and 1960s, government jobs were among the few acceptable job
occupations for people from respectable households. Changing technology and
globalisation have changed that with unconventional income opportunities now
presenting themselves to Indians. Some pensioners have sought and enjoyed success
in information technology-related endeavours whilst others have put their
considerable English language skills to good use in service industries. Pensioners
have been the hardest hit section of the population. With declining interest rates,

25
they have had to play a more active role in financial management. Some of them are
even trying to keep abreast of current happenings and learning how to use a
computer or access the Internet.

There food preferences are shaped by their health conditions and they stick to their
preferred food items.

Independent living on the rise

From the 1980s onwards, there has been a steady migration of young adults and
students to the US, in search of better opportunities. Most have chosen to settle and
make their lives in that country. Therefore, their ageing parents have had to learn to
continue to live independently.

Retirement communities viewed as an option

Retirement homes were previously viewed negatively in India. If the elderly went
there, it meant they had no one to care for them, and were in a sense for the destitute
elderly. In the new urban India, however, well-appointed retirement communities
are mushrooming, and couples in their 60s are going there of their own volition.

While the numbers are not yet significant, a trend is likely to increase in line with
growth in the numbers of India‘s elderly. It is also now an option for the middle -
income and salaried classes. In families where there is a proprietary business, or a
family practice, two-to-three generations will continue to live together.

MARKET NEEDS

The urban Indian is used to having his dinner late from around 8:30 pm to as late as
11 pm.

Hence a convenient snack between lunch and dinner is an often exercised option. In
rural areas, smaller priced packs stimulate demand.

Maggi is a fun and convenience brand which sits strongly in its position as a "good to
eat, fast to cook" anytime snack and is popular across different age groups.

26
Opportunities in practically all consumption categories arise in terms of "reach" and
"medium of consumption". Hence the onus is on the company to make it easily
available and affordable and in different sizes, catering to different categories of
users like the new Maggi chota pack conveniently priced at Rs 5 for 50gms. The
Indian palate is not too adventurous in terms of trying out new flavours. In fact

today, Maggi have settled at standard flavours such as curry, masala, tomato and
chicken and not much experimentation is necessarily required in the noodles market.
People prefer to have it easily available and affordable.

MARKET TRENDS

The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion

in 2015. Penetration level is only 30% for Maggi Noodles in urban areas as well as
per capita consumption for the Instant noodles and pasta segment is low indicating
the untapped market potential

The BRICs report indicates that India's per capita disposable income, currently at

US$ 556 per annum will raise to US$ 1150 by 2015 -another demand driver. Spurt in

The industrial and services sector growth is also likely to boost the urban
consumption demand.

Only about 8-10 per cent of output is processed and consumed in packaged form,
thus highlighting the huge potential for expansion of this industry. Currently, the
semi processed and ready to eat packaged food segment has a size of over US$ 70
billion and is growing at 15 per cent per annum.

FICCI Federation of Indian Chambers of Commerce and Industry has predicted an

overall growth of culinary products/snack food (10%).

27
MARKET GROWTH

General growth of the Indian Noodles sector FY 2005-2006

FICCI states that the culinary products and snack category, under which Maggi

noodles is classified, has had a robust growth of 8%.

Growing by a more than robust 21% in current value and 16% in volume, growth in

noodles will be among the fastest in the various packaged food products in India.

(Refer Appendix A: Indian Instant Noodle Market Growth Graphs)

Current value sales of noodles in stood at slightly over Rs 9 billion, with pouch

instant noodles accounting for more than 66% of the total value sales.

Growth of Maggi Noodles FY 2005-2006

For the FY 2005-2006, the growth of Maggi noodles was an impressive 15%, with

sales at Rs 6.75 billion and profit at Rs 2 billion.

28
Maggi –PRODUCT LENGTH

1. Noodles

 Maggi 2-Minute Noodle ( Masala , Chicken, Curry

and Tomato)
 Maggi Dal Atta Noodles ( Sambhar taste)
 Vegetable Atta Maggi Noodles
 Maggi Rice Noodles (Lemon Masala, Chilly 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

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 Maggi Oriental Chilli Garlic
 Ginger, Garlic & Coriander

3. Maggi Pichko

4. Soups Healthy

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

 Home Style
- Creamy Chicken
- Mixed Vegetable
- Rich Tomato

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

5. Maggi soup sanjivni

 Amla
 Badam
 Spinach
 Dal
 Tomato

6. Maggi bhuna masala

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 Bhuna masala for gravy dishes
 Bhuna masala for vegetable dal

7. Maggi magic cubes

 Chicken
 Vegetarian masala

31
FOUR P’S OF MARKETING

FOR MAGGI

PRICE

Considering the price points in the market for Maggi, it should continue to position
itself in the "snacks" category itself, since few would be willing to accept it as a meal
(Indian Consumption Habits - Noodles still aren‘t taken as proper food item).

Affordable by all income groups.

PLACE:

• The distribution network is well spread

• Easily available in all kirana stores, retail store etc.
• Market share

PROMOTION:

Changed their advertising campaign- focus on health and nutrition.

Celebrity endorsements. E.g . . . . Javed Jafferi Sales promotion in schools and

offices, as the exercise of brand call.

Market research exercise-regards of taste and health issues. This helped maggi to
think about the customer. Distributed free samples-period of new launches.Invited
housewives to send new innovative recipes.

Maggi's first product extension was Maggi instant soups launched in 1988. With the
launch of Maggi soups, NIL had become a pioneer in the organized packaged soup
market in India...

Taglines like 'Mummy, bhookh lagi hai' (Mom, I'm hungry), 'Bas 2-Minute,' (Only 2
minutes) and 'Fast to Cook Good to Eat' effectively communicated the product's
benefits to target consumers.

32
Michael Porter’s Five Forces Model

New entrants

1. Top Ramen

2. Horlicks foodles

3. Sunfeast Pasta

Suppliers Industrial Rivalry Buyers

1. Distributers 1. Top Ramen 1. Customer‘s mind
2. Raw material 2. Horlicks set
foodles
3. Chowmeen etc. 2. Brand Image
3. Packaging

Substitutes

1. Fast Food

2. Soups

3. Pasta

33
SWOT ANYLYSIS

Strengths

>Strong brand recall and the product is almost eponymous to the

>brand. Market leader with 79.3% market share in terms of value.

>Highest advertising share (72% TV AdEx 2004-05).

>Emotional relationship with the consumer.

>A strong distribution network of the parent company

Weakness

>Tagged as a product having no health value.

>It has tried to bring in innovation but has

failed. (Dal Atta Noodles refer survey noodles).

>The product features have remained almost constant since inception in 1983 with
any trial of innovation misfiring.

>Market share has fallen from the 80%

in 1998-99 to 79.3% in 2005-06

Opportunities

>The instant noodles segment is projected to grow at a tremendous rate with

the market size doubling by 2010.

>Increase in the potential consumer base i.e. single working professionals and student
population .

34
>Rapid economic growth and rising disposable incomes make a strong case for
a premium brand like Maggi.

>Upward trend of convenience food consumption.

>Huge untapped serviceable upward class rural

base

Threats

>Competition is increasing with established competitors in other segments are

foraying into the noodles segment seeing the capacity of growth.

>Top ramen the prime competitor has come up with new exciting instant noodle

>Offerings like cup noodles and mug noodles which threaten to eat into Maggi‘s
market share.

>Foreign players like Wai Wai and Rum Pum have forayed into the noodles
market and have made their brand presence in eastern markets while indigenous

>Parle is threatening to offer their distribution network to international noodle

brands wishing to make an entry.

>Top Ramen has repositioned itself on a health platform with a new baseline ―Get on
Top‖ fortifying its product with calcium and vitamins.

>The product as priced higher than its main rival

>Top Ramen Horlicks come up with new Horlicks foodles.

35
RESEARCH METHODOLOGY

STAGES IN RESEARCH :

36
Problem Defination
To identify the consumer characteristics of the fast food industry.
To understand the influence on purchasing consumers mind set.
To know about customer acceptance of the product.
To see the perception of consumers between any two fast food region of
Vadodara.
To understand why customer buy a particular product.
To help the company to know what consumer want in the product.
To understand Brand Imagery, Brand Quality perceived by customers, Brand
credibility, consideration, superiority and feelings.

RESEARCH DESIGN:

Research Design:

The research will be carried out in the form of a survey which will be done in
Ranchi. The population has been segmented on the basis of Age Group

Sample Design:

The target population for our study is households. The sample will be selected by a
simple random sampling method .

Sample Size:

The sampling unit is 150 which are divided as follows:

Number of 150
respondents
Age-group 10 – 45
Survey Locations Ranchi

Age Group 10 – 25 25 - 35 35 – 45
Number of Respondents 50 50 50

37
DATA COLLECTION PLAN

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

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

Many people eat now days ready to eat food. Here everyone is familiar with
ready to eat food and consumed.

2. Which of the following food item would you consume?

38
Most of people eat Maggi such as (92.3% ). pasta has gained the market share of Maggi.
Better advertisement campaign of Sunfeast pasta has been created awareness of pasta.
But still Maggi has more demand than the Sunfeast pasta.

3. What is the frequency of consumption?

Chart Title
70 62
60
50
40 33
30 27
18
20
10
0
Everday more then a week once amonth No particular pattern

The frequency of Maggi consumption is more than any other products.

Maggi is still market leader in this segment.

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

39
Brand Associations:

Sources of Brand equity like brand association of Maggi as a Brand was found
highest with the age group of 10-25 and the product category associated with it was
the noodles category Consumers in the age segment of 10-25 could easily relate
Maggi to noodles.

In the income wise category the brand association was highest with the income group
of 25k-40k were more than 40 respondents associated Maggi with noodles .The
implications from the findings discussed above seem that Maggi has good brand
association in terms of noodles. Consumers presume Maggi as Noodles and the
company‘s philosophy of projecting the brand as noodles brand seem to be viable in
this regard.

5. Are you aware of Horlicks foodles ?

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

40
6. Would you like to try Horlicks Foodles?

As Foodles has Brand name Horlicks has been associated with it so many people said
to try it. Also the impact of advertisement has been created the curiosity regarding
the foodles. So people are ready to try it.

Horlicks come with a trademarked Health maker sachet which has 9 Power
Vitamins. Besides, the 4 Grain variant is made with nutritious grains like Rice, Ragi,
Wheat and Corn. As a sub-variant, each of the two varieties comes in three different
flavors.

7. How do you aware of Horlicks?

50
44
45
40
35 31
30
25 23
20 17
15 12 13
10
5
0
Friends Newspaper Hording T.V ads Radio Family

41
The awareness through advertisement has shown by more than any other medium of
media. Then newspapers have also shown the positive impact regarding to foodles. It
is suggested that foodles has to concentrate on TV advertisement. Horlicks
advertisement ―SAY No TO NOODLES‖ which is gaining popularity and attracting
customer also giving an impact on the minds of customers who are health conscious
specially mother who are very worried about their growing child‘s health. Already
Horlicks has gained named in the segment of health drink so they are saying that our
noodles are healthy to you and your family through various advertisements.

42
8. According to you which age group prefer Maggi most?

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

43
10 .Which of the following do you think healthier product?

60
51
50

40 38

30 28
23 Series1

20

10

0
. Maggi Horlicks Foodles Top Ramen Sunfeast Pasta

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

44
12. Do you keep switching on products?

100 92

80

60
48
40

20

0
Yes No

13. Demographic Information

Age:

Gender: M-------- F---------

Education: --------------------------

Occupation: ----------------------------

Income: -----------------------------

Children‘s: -----------------------------

45
RECOMMENDATIONS
After the conducted study following recommendations could be sited for Maggi
Brand.

To gain maximum leverage in terms of profit the company should pay emphasis on
segments with age groups 25-35 and above .Advertising is the key to success.
Targeting these segments will not only enhance the company‘s profit margins but
also it will leverage the brand image of Maggi.

The company should advertise its products by depicting attributes related to Health
like Nutrition values, % of Vitamins, Proteins etc.This would help in customers
perceiving the product as Healthy

Foray into other food products like chips, chocolates etc under its sole brand name
would not only help in Brand extension but will also enhance Maggi‘s market share.

Conclusion:

The food processing business in India is at a nascent stage. Currently, only about 10%
of the output is processed and consumed in packaged form thus highlighting huge
potential for expansion and growth. Traditionally, Indians believe in consuming
fresh stuff rather than packaged or frozen, but the trend is changing and the new fast
food generation is slowly changing.

Maggi Today The year 2010 saw India leading in worldwide Maggi sales. The brand
has grown to an estimated value of Rs 160-170 crores and contributes at least 8–9%
to Nestle India‘s top line. All the same, some FMCG analysts feel that the brand has
not done much to expand the noodles category. Even after 25 years of its launch, the
size of the instant noodles market is yet quite small at Rs 300 crores. But yes, the
parent company, Nestle India Limited has certainly encouraged the brand to enter
into other culinary products

46
STPD ANALYSIS OF MAGGI BRAND

Segmentation: Market Segmentation divides the heterogeneous market into

homogenous groups of customers who share a similar set of needs/wants and could
be satisfied by specific products. Maggi Brand have segmented the market on the
basis of lifestyle and habits of URBAN FAMILIES.

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

Positioning: Market Positioning is the act of designing the company‘s offerings and
image to occupy a distinctive place in the minds of the target market. The goal of
positioning is to locate the brand in the minds of consumers to maximise the
potential benefit to the firm. Maggi has positioned itself in the SNACKS category and
not in the meal category since Indians do not consider noodles as a proper food item.
Therefore Maggi have developed its brand image of instant food products with
positioning statements such as ―2 minutes noodles‖ and ―Easy to cook, good to eat‖ .

Differentiations: Points-of-difference (PODs) are attributes or benefits

consumers strongly associate with a brand, positively evaluate and believe they could
not find to the same extent with a competitive brand. The Maggi Brand have also
differentiated its brand image from its competitors in terms of taste, flavours and
packaging. Maggi have launched wide varieties of products in different flavours
which can attract larger set of customers. Maggi products are also available in
different sizes catering to different customer needs.

47
LIMITATIONS

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

48
Bibliography

Books and Readings

Marketing – Philip Kotlar

Consumer behaviour-Michel R Solomon.

Websites

www.Google.com

www.Yahoo.com

www.gsk-ch.in

www.nestle.in/

http://trak.in/tags/business/2010/08/05/horlick-foodles-maggi-noodles/

en.wikipedia.org/wiki/Maggi

bestadreviews.blogspot.com

www.consumerpsychologist.com/

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https://www.scribd.com/doc/165972662/Maggi-noodles-project-on-Research-Methodology

https://www.marketing91.com/swot-analysis-of-maggi/

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Annexure
Questionnaire

1Do you consume ready to eat food like noodles and pasta?

2Which of the following food item would you consume?

3What is the frequency of consumption?

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

5 Are you aware of Horlicks foodles

6 How do you aware of Horlicks?

7 Would you like to try Horlicks Foodles?

8 According to you which age group prefer Maggi most?

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

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

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

14.Do you keep switching on products?

15.Demographic Information

Age:

Gender: M-------- F---

51
Education: --------------------------

Occupation: ----------------------------

Income: -----------------------------

Children‘s: -----------------------------

52