Download - Project on Maggie
INTRODUCTION
The report entitled “A research done on Maggi Brand ” deals with the
study of Maggi brand that was launched in India in the year 1983, by Nestle India
Limited, which became synonymous with noodles. This research paper tries to find
a solution to a real life problem of Maggi to launch its products as a Healthy
Product. The introduction provides the company background, operational &
other important information provided by the company which would assist in taking
the decision for the right brand extension strategy for Maggi.
Further, it provides information on the research methodology and
problems faced during the research. It also throws some light on the research
objectives and design.
Lastly, this project shows the sampling method used and data collection
tools adopted for this project.
The focus of my research was the measurement of customer satisfaction
provided by Nestle Maggi. There can be no better opportunity to interact with the
external as well as the internal customers of an organization. Finally the results of
the research verify the fact that keeping the customer satisfied is the best strategy to
not only retains the existing customers but also to expand the business to new
horizons.
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BACKGROUD OF MAGGI
The industrial revolution in Switzerland in the late 1800s created factory jobs
for women, who were therefore left with very little time to prepare meals. This wide
spread problem grew to be an object of intense study by the Swiss Public Welfare
Society. As a part of its activities, the Society asked Julius Maggi miller to create a
vegetable food product that would be quick to prepare and easy to digest. Born on
October 9, 1846 in Frauenfeld, Switzerland, Julius Michael Johannes Maggi was the
oldest son of an immigrant from Italy who took Swiss citizenship. Julius Maggi
became a miller and took on the reputation as an inventive and capable businessman.
In 1863, Julius Maggi came up with a formula to bring added taste to meals.
Soon after he was commissioned by the Swiss Public Welfare Society, he came up
with two instant pea soups and a bean soup - the first launch of the 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.
The Maggi Company merged with Nestlé in 1947. Today, Maggi is a leading
culinary brand and part of the NESTLÉ family of fine foods and beverages. Under
the Maggi brand, which is today known worldwide for quality and innovation,
Nestle offers a whole range of products, such as packaged soups, frozen meals,
prepared sauces and flavourings.
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MAGGI BRAND IN INDIA
Maggi Comes to India – teething troubles Maggi noodles was launched in
India in the early 1980s. Carlo M. Donati, the present Chairman and Managing
Director of Nestle India Ltd, brought the instant noodle brand to India during his
short stint here in the early eighties. At that time, there was no direct competition.
The first competition came from the ready-to-eat snack segment which included
snacks like samosas, biscuits or maybe peanuts, that were usually the bought out
type. The second competition came from the homemade snacks like paratha or
sandwiches. So there were no specific buy and make snack! Moreover both
competitors had certain drawbacks in comparison. Snacks like samosas are usually
bought out, and outside food is generally considered unhygienic and unhealthy. The
other competitor, "homemade" snacks overcame both these problems but had the
disadvantage of extended preparation time at home. Maggi was positioned as the
only hygienic homemade snack! Despite this, Nestlé faced difficulties with their
sales after the initial phase. The reason being, the positioning of the product with the
wrong target group. Nestle had positioned Maggi as a convenience food product
aimed at the target group of working women who hardly found any time for
cooking. Unfortunately this could not hold the product for very long. In the course of
many market researches and surveys, the firm found that children were the biggest
consumers of Maggi noodles. Quickly they repositioned it towards the kids segment
with various tools of sales promotion like colour pencils, sketch pens, fun books,
Maggi clubs which worked wonders for the brand.
3
RESEARCH METHOLODOGY
The research has been carried out in the form of a survey. This includes
primary research in addition to secondary research as stated below. Each respondent
is interviewed through a Questionnaire. The sample is selected by a simple random
sampling method.
The survey 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?
Do they consider noodle as a healthy product or they are aware of the
company"s strategy of repositioning it to a healthy product by the launch of
some of the new products?
4
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?
5
RESEARCH PROBLEM
Every attempt will be taken to obtain the error free and meaningful result but as
nothing in this world is 100% perfect I believe that there will still the chance for
error on account of following limitations. The problems faced during the research
were:-
Respondent’s unavailability.
Time pressure and fatigue on the part of respondents and interviewer.
Courtesy bias.
The results and conclusions of the project cannot be generalized in all area of
an organization.
There was a shortage of time and resources for the functioning the operation.
There was a hurdle in the collection of data from primary sources i.e. risky as
well as incomplete.
Confused responses from the people.
6
RESEARCH OBJECTIVES
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.
Brand Extension of Maggi in terms of product diversity.
Analyse the repositioning of Maggi brand as a “Healthy product” and the
consumers perseverance towards the same.
7
DATA COLLECTION
Tools of data collection
Tools used for this project are:-
The primary data collection method used for this project is Questionnaire.
The secondary data is collected through News papers, Text books, Marketing reports
of the company and Internet.
8
ANALYSIS & INTERPRETATION
Q-1 Are you a customer of maggi ?
Yes
No
Yes No0
5
10
15
20
25
30
35
40
45
Interpretation
This survey suggested that out of 40 customers are consumers of Maggi products.
Maggi is quite famous with the different types of customers in the market.
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Q.2 How often do you have Maggi?
Fortnightly
Once a day
Once a week
Dont eat maggi
Fortnightly Once a day Once a week dont eat maggi0
5
10
15
20
25
Interpretation
Most consumers have maggi once a week followed by Fortnightly.
10
Q.3 You have maggi for?
Breakfast Lunch Evening snacks Dinner
Breakfast Lunch Evening snacks Dinner0
5
10
15
20
25
30
35
40
45
Interpretation
Most consumers have maggi as evening snacks.
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Q-4 what comes first in your mind when you hear the word Maggi?
Noodles
Fast food
Snacks
None of these
Noodle Fast food Snacks None of these0
5
10
15
20
25
30
35
40
Interpretation
The survey suggested that 35 out of 50 consumers associated maggi with noodles.
People are familiar with maggi as a brand for noodles in majority .
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Q-5 what is the brand that comes to your mind when we say the word noodles?
Maggi
Top Ramen
Yippie Noodles
Sunfeast Noodles
Maggi Yippie Top ramen Sunfeast0
5
10
15
20
25
30
35
Interpretation
The survey suggested that Maggi is the most popular brand with the customers of
noodles . It suggests that 30 out of 50 consumers associates noodles with magi.
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Q 6. Rate the following Maggi products with respect to frequency of purchase with 5
being the highest and 1 being the lowest.
Noodles
Ketchup
Cubes
Soup
Pickles
Noodles Ketchup Cubes Soup Pickles0
1
2
3
4
5
6
Interpretation
Most customer given rank 5 rating to the noodles in purchase of maggi product, 4 to
the ketchup, 3 to the cubes, 2 to the soup and 1 to pickles. People purchase Maggi
noodles in majority . The frequency of purchase of maggi noodles is very high.14
Q-7 With what products would you associate the brand Maggi?
Ketchup
Noodles
Soup
Masala
· Ketchup · Noodles · Soup · Masala 0
5
10
15
20
25
30
35
40
Interpretation
The survey suggested that 38 out of 50 people associated the brand maggi with
noodles .
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Q 8. On a scale of 1 to 5 rate Maggi on the following parameters wherein 1 being the
lowest and 5 being the highest:-
Taste
Hygiene/purity
Variety/flavor
Availability
Packaging
Taste Hygiene/purity Variety/flavor Availability Packaging0
1
2
3
4
5
6
Interpretation
The product Maggi have been rated well on the above parameters by most of the
customers. From the scale 1 to 5 the consumers gave 5(highest rate) to the taste and
avalability, 4 rating to hygiene/purity and packaging, 3 (lower rate) to variety and
flavour. So the company need to introduce maggi in different variety & flavour.
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Q-9 Rate the categories which Maggi should look in future in order of your importance wherein 1 being least important and 5 being the most important:
Chocolates _____________
Salted Potato Chips _____________
Fruit Juices _____________
Processed foods(Ready to use pastes, masala) ____________
Atta _____________
Processed foods Salted potato chips Chocolate Atta Fruit juice0
1
2
3
4
5
6
Interpretation
Here the consumer rated that maggi should look in future in order of their
importance giving most important tag to processed food, and least to Fruit juice. So
company should take the action to fulfill the consumer demand according to their
importance.
Q-10 how do you rate Maggi brand in terms of following parameters:17
Expertise (Competent, Innovative, Market leader)
Trustworthiness (Dependable and keep customers interest in mind)
Liability ( Fun ,interesting)
None of these
Expertise Trustworthiness Liability None of these0
1
2
3
4
5
6
Interpretation
The consumer gave 5(highest) to the trustworthiness, 4 to expertise, 3 to liability
& 1(lowest) to the other factors. According to survey , Maggi brand is using
expertise strategy to look forward in future .
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Q-11 How do you perceive Maggi products?
Good for health.
Ready to eat.
Junk food
Tasty / Fun eating
Good to health Ready to eat Junk food Tasty/fun eating0
5
10
15
20
25
30
Interpretation
25 out of 50 people percieve maggi product as ready to eat.
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Q-12 Which Maggi products in noodles category do you regularly buy?
Maggi masala
Maggi vegetable attar noodles
Maggi dal Atta noodles
Maggi rice noodles mania
Others
Maggi masala Maggi vegetable atta noodle
Maggi dal atta noodle
Maggi rice noodle mania
others0
5
10
15
20
25
30
Interpretation
Out of 50 half of consumer consume maggi masala, 10 consumer consume maggi
vegetable atta noodle, 8 consume maggi rice noodle mania, 5 consumer consume dal
atta noodle& remaninig consume other. So the marketing & sale of maggi masala
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noodle is more as compared to other maggi noodle.
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Q-13 Do you perceive Maggi noodles as a healthy product?
Yes
No
Yes No 0
5
10
15
20
25
30
35
40
Interpretation
According to survey Maggie is perceived as a healthy product for most of the
consumers.
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RECOMMENDATION
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.
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FUTURE PLANS
- Nestlé India"s objective is to manufacture and market the company"s
products in such a way so as to create value that can be sustained over
the long term for consumers, shareholders, employees and business
partners.
- Maggi's aims to create value for consumers that can be sustained over
the long term by offering a wide variety of high quality, safe food
products at affordable prices.
- The company continuously focuses its efforts to better understand the
changing lifestyles of modern India and anticipate consumer needs in
order to provide convenience, taste, nutrition and wellness through its
product offerings.
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MAGGI – SOME FACTS
Manufactured by Nestle
Entered Indian market in 1982
Market leader in instant noodles category
Main challenge faced is changing the mind-set of the Indian consumer
Initially : –
Target Audience - Working women –
Target Market – Working Women –
Positioning – Convenience of Cooking •
Later –
Target Audience – Mothers –
Target Market – Children –
Positioning – 2 Minute Noodles
Finally, found that Maggi was liked by consumers of all the ages • Turned their
focus to health conscious consumer with the launch of “atta-noodles
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CONCLUSION
The food processing business in India is at a nascent stage. Currently, only
about 10% of the output is processed and consumed in packaged form thus
highlighting huge potential for expansion and growth. Traditionally, Indians believe
in consuming fresh stuff rather than packaged or frozen, but the trend is changing
and the new fast food generation is slowly changing.
Riding on the success of noodles, Nestle India, tried to make extensions of the
Maggi brand to a number of products like, sauces, ketchups, pickles, soups,
tastemakers and macaroni in the mid-1990s. Unfortunately, the macaroni and pickles
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
the formulation 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 "Top Ramen" took advantage of the situation and started a
parallel aggressive 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 sampling campaign. This helped Maggi to win back its lost consumers and
pushed up its sales volumes again!
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Maggi Today The year 2008 saw India leading in worldwide Maggi sales. The
brand has grown to an estimated value of Rs 160-170 crore and contributes at least
8–9% to Nestle 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 crore. But
yes, the parent company, Nestle India Limited has certainly encouraged the brand to
enter into other culinary products.
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Annexue Questionnaire
Q-1 Are you a customer of maggi ?
Yes
No
Q.2 How often do you have Maggi?
Fortnightly
Once a day
Once a week
Dont eat maggi
Q.3 You have maggi for?
Breakfast
Lunch
Evening snacks
Dinner
Q-4 what comes first in your mind when you hear the word Maggi?
Noodles
Fast food
Snacks
None of these 28
Q-5 what is the brand that comes to your mind when we say the word noodles?
Maggi
Top Ramen
Yippie Noodles
Sunfeast Noodles
Q 6. Rate the following Maggi products with respect to frequency of purchase with
5 being the highest and 1 being the lowest.
Noodles
Ketchup
Cubes
Soup
Pickles
Q-7 With what products would you associate the brand Maggi?
Ketchup
Noodles
Soup
Masala
29
Q 8. On a scale of 1 to 5 rate Maggi on the following parameters wherein 1 being
the lowest and 5 being the highest:-
Taste
Hygiene/purity
Variety/flavor
Availability
Packaging
Q-9 Rate the categories which Maggi should look in future in order of your
importance wherein 1 being least important and 5 being the most important:
Chocolates _____________
Salted Potato Chips _____________
Fruit Juices _____________
Processed foods(Ready to use pastes, masala) ____________
Atta _____________
Q-10 how do you rate Maggi brand in terms of following parameters:
Expertise (Competent, Innovative, Market leader)
Trustworthiness (Dependable and keep customers interest in mind)
Liability ( Fun ,interesting)
None of these
Q-11 How do you perceive Maggi products?30
Good for health.
Ready to eat.
Junk food
Tasty / Fun eating
Q-12 Which Maggi products in noodles category do you regularly buy?
Maggi masala
Maggi vegetable attar noodles
Maggi dal Atta noodles
Maggi rice noodles mania
Others
Q-13 Do you perceive Maggi noodles as a healthy product?
Yes
No
31
BIBLOGRAPHY
Research Methodology -
-by C.R.Kothari
Research Methodolgy - Concept and cases
-by Deepak Chwala
WEBLIOGRAPHY
www.studymode.com
economictimes.indiatimes.com
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