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PROJECT REPORT

ON

K n o r r S o u p s v s . M a g g i S o u p s

in IND IAN mar ke t

Submitted to-

Dr Shalini Trivedi

Submitted by-

Bharat Baid A-!"ikram Singh A-##

A.$.%.S Trinadh A-&'Subhasis A-&(

Sandeep Suman A-&)

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*re+a,e

The report entitled Knorr Soups vs Maggi Soups in Indian market deals with the study

of Knorr and Maggi packet soups both of which are the leaders of the packet soupindustry in INI!" This research tries to find out what important factors contribute to thepurchase decisions of a packet soup product for both Knorr and Maggi" The introductionprovides the background of both the companies"

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TAB/ 01 $0NT/NTS

Introduction 4-6

Literature Review 7-8

Objective and Researc !etodo"o#$ %-&'

Objectives 9 Research Design 9

Sampling Framework 10

(ata )na"$sis and Inter*retations &&-&8

+indin#s o, te tud$ &%-.'

Conc"usion and Reco//endation .&-.0

Recommendation 21

Conclsion 22

!imitations 2"

1ib"io#ra*$ .4

)nne2ure .0

"

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Introduction

!ccording to various estimates# soup market in India was in the range of IN$ %&&'%() crores *+S (( mn

, (- mn. in (&%&" This segment of packaged food has been relatively under penetrated in India but withurbani/ation and rise in organi/ed retail# rise in income and changing lifestyles# the segment has

e0perienced growth rates of more than (&1 year on year in last ) years"

Key ,hara,teristi,s o+ Indian soup market are

%" ehydrated soups dominate the market" It is followed by canned soups which are way behind at

second place" Market for instant and fro/en soups is nil"

(" In terms of flavors# the choice of consumers has not changed significantly in last few years" The

top three flavors are2

Tomato *leader position.

Sweet corn

3egetable

In non'vegetarian flavors# chicken soup is most popular"

4" Supply mediums , small retailers 5 mom'n'pop stores dominate the distribution of soups in India"

This is primarily because organi/ed retails is in nascent stage and have low penetration in rural

and tier III and lower" It is e0pected that share of organi/ed retail is e0pected to increase in future"

Keymarketplayers'

Indian soup market is dominated by a few players" The market is consolidated and top three players

account for more than 6&1 of the market by value and volume" The key players are2

%" 7industan +niliver , The company sell soups under Knorr brand and have the largest market

share"

(" Nestle India , Nestle is another prominent player in the market with its brand name Maggi

4" 8apital 9oods :td" , $elatively small and new player *launched in (&&;. as compared to top two

the company has been gaining market share in last few years" It sells its products under 8hing

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MA33I

In %66;# Nestle launched Maggi

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Knorr as a brand has always set out to empower homemakers and enable them tomake healthy# wholesome and delicious food options" !ll Knorr products are healthy#completely preservative free and low on sodium and cholesterol content"The brand has also played a key role in helping the Indian housewife in more ways thanone' whether it is through the launch of books like Soups and More,through on ground

events# soup demonstrations and sampling or through its websitewww"8ookit+p"in"www"8ookit+p"inis a one stop shop for every single cooking need and a recipe site todiscover and befriend for life @hether it is authentic recipes for every occasion# apowerful search engine that helps you churn out any recipe need with ingredients withinyour reach or ideas for resourceful and tasteful use of leftovers in the fridge"

%

http://www.cookitup.in/http://www.cookitup.in/http://www.cookitup.in/http://www.cookitup.in/

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IT4/AT54/ 4/"I/6

%. Aromo line lands Maggi in a soup

&hen 'O( contacted) a *estle spokesperson told +' that ,aggi -ealth. Sops are e/cellent

prodcts and the claims made in the commnication are correct &e have soght clariicationsrom 3SC( or reasons as to wh. the complaint has been pheld and are awaiting their response)

he said

( 3SC( pts its oot down) it cold create a pi4ant sitation or *estle ,ore than changing thepackaging material and incrring some costs therein) *estl56s real challenge wold be to change

,aggi7s positioning) which is based on the health platorm and more recentl. on a health. heart

3SC( has also asked *estle to withdraw '8 and print ads 'he *estle spokesperson) however)

said ads or the prodct are not rnning crrentl. as the prodct is seasonal &e have not

planned advertising or it dring this period 'he. have not been plled ot de to an.complaint) said the compan.

'he skirmish between the two ,*Cs started when -!!) the maker o norr sop) raisedobjection to the claim made b. *estle that drinking sops leads to a 7happ. heart7

Frther) -!! contested the claim made b. *estle 4oting a health bod.) R+3!) that sops

which are low in at and cholesterol help the heart sta. health. &e are not sa.ing sops arebad *estle has e/aggerated the beneit o sops to mislead consmers &e are in the same

bsiness and we know what goes in a sop) said an -!! insider

&hen contacted b. +') an oicial rom the 3SC( secretariat said) 'his is a ver. recent

complaint and) as a polic.) we do not comment on speciic complaints made b. companies

-owever) 3SC( encorages intra:indstr. complaints that are technicall. sbstantial

3dvertising) ater all) incldes messages on prodct packs

'he sop market ;organi0? o the market ,aggi competes with it with 20?:pls share o the market @rasoon Aoshi)e/ective chairman o ,cCann +rickson (ndia) did not wish to be drawn in this speciic case

3ll he said was) as long as the claims made b. the companies concerned are legall. correct) the.shold have the reedom to write abot it on prodct packs @ackaging is ver. mch a part o

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advertising) and there shold not be crbs on packaging per se as long as the claims made on

packs are tre b. law) he said

*estle received 3SC(7s letter on ,arch B asking or clariication on the depiction o -app. -eart

,aggi sop in '8 and press ads 3SC( also wanted a clariication on the stats o the Centre or

Right +ating and 3ctive !iest.le ;R+3!=) whose name was depicted on the commnication*estle said it had responded to 3SC( that the claims and statements made were scientiicall.

correct ;with reasons= and the statement made b. R+3! was also correct and sbstantial

(. Indian mothers recogni/e the health benefits of soup

The 4rd annual Snacking Study for Knorr Soups conducted by research agency !8Nielsen has revealed some interesting facts about the consumption of snacks in Indianmetros"Ene thousand respondents were interviewed across cities in India including Mumbai#elhi# >angalore# 8hennai and Kolkata" Most of the respondents were homemakers#working women *mothers. in the age group of (?'= belonging to the middle and upperincome households"

!ccording to the findings of the survey# mothers accord high priority to healthy and tastysnacks with the goodness of vegetables" !n increasing number of Indians arerecogni/ing the health benefits of soup consumption# which has increased significantlyin the last three years" 9rom ranking number ten last year# soup has now become the

number four choice for a pre'dinner snack"! very high percentage of mothers from 8hennai *;)1. J Kolkata *?-1. believethat kids eat only selective vegetables"(n (ndia) mothers consider sop as the most ideal non attening low cal6 snack

9ruits# biscuits and soups are the top mentions as healthy snacks by mothers in IndiaKids in elhi rank high amongst the list of those who consume unhealthy snacks">urgers5pi//a5fries# chat5bhel J pakoda5samosa5kachori top the list of the mostfreGuently consumed pre dinner snacks amongst kids in elhiKolkata continues to have a maBor sweet tooth" ! significantly high# about )&1 of kids inKolkata have sweets everyday as pre dinner snacks8ontrary to popular belief# Mumbai has the highest mention of soups as a healthy J

tasty snack+rban India Bust does not find the time to snack The freGuency of snacking has gonedown considerably# suggesting Indians have become too busy to eat through the day

B

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0B7/$TI"/S

To study the perception of consumers regarding Knorr and Maggi"

To understand the factors that influences the purchase decisions in the packaged

soup industry"

4/S/A4$% *AN

4esear,h Design

The research for this study is a Des,riptive 4esear,h.

*rimary Data

Arimary ata refers to the data gathered for a specific purpose or for a specific

research proBect" These data gives latest information" This type of data is

obtained from original sources" In this study# primary data is collected through8uestionnaire Method.

Se,ondary Data

Secondary ata refers to that which is compiled by some other than the other

researcher for purpose not directly related to the research" These are readily

available for processing" This type of data relate to past period" The two main types

of secondary data are Internal and 0ternal data"

The sources used for such data types are as follows2

a.Internal2 the sources include company annual reports bulletins# research reports#

etc"

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b.0ternal2 the sources include2 Aublished materials such as periodicals and books

like business periodicals# marketing Bournals# general business and trade

maga/ines# etc"

Sampling 1rame9ork

Sampling +nit2

The research will be carried out in the form of a survey which will be done in elhi" Thepopulation has been segmented on the basis of the consumers consuming soupproducts of both the brand"

Sampling Arocedure2

It will be a descriptive research and the sample will be selected by convenience

sampling method"

Sample Si/e2

The sampling si/e will be %&&"

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DATA ANA:SIS

%. 7ow often do you have packet soupL

4esponse 4espondents ;

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(. @hat brand comes first in your mind when you hear the word soup L

4esponses 4espondents ;

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4. 9actors that influences purchases decisions in a packaged soup industry ,

a= Availability

Knorr Maggi

1#

29%

31%

22%

13%

5%

Availability

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

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Interpretation2

In the above ( figures were can see that in case of Knorr (61 of the total respondentsstrongly agrees and 4%1 of them agrees# ((1 stays neutral# %41 disagrees and )1strongly disagrees that availability plays an important role in influencing purchasedecisions"

In case of Maggi (=1 of the total respondents strongly agrees and =&1 of them agrees#%?1 remains neutral %=1 disagrees and ?1 strongly disagrees that availability plays animportant role in influencing purchase decisions

b. *ri,e

Knorr Maggi

Inter*retationE

1$

35%

43%

12%

%

2%

Price

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

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In the above figures we can see that in case of Knorr -;1*=41 4)1. of the totalrespondents agrees# %(1 remains neutral and %&1*;1 (1. disagrees about the factthat price plays an important role in determining purchase decisions of its packagedsoup product"

In case of Maggi -=1*4;1 4?1. of the total respondents agrees# %-1 remainsneutral and 61*?1 41. disagrees about the fact that price plays an important role indetermining purchase decisions of its packaged soup product"

c. Time

Knorr Maggi

5%

24%

31%

26%

14%

Time

Strongly Agree

Agree

Neutral

Disagree

Strongly

Disagree

11%

30%

1%

2%

13%

Time

Strongly

Agree

Agree

Neutral

Disagree

Strongly

Disagree

Interpretation2

1%

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In case of Knorr )1 of the total respondents strongly agrees and (=1 of them agrees#4%1 stays neutral# (?1 disagrees and %=1 strongly disagrees to the fact that time forcooking plays an important role in influencing purchase decisions of its packaged soupproduct"

In case of Maggi %%1 of the total respondents strongly agrees and 4&1 of them agrees#%;1 stays neutral# (;1 disagrees and %41 strongly disagrees to the fact that time forcooking plays an important role in influencing purchase decisions of its packaged soupproduct"

d. Taste

Knorr Maggi

Interpretation2

1>

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In the above figures we can see that in case of Knorr -=1*=41 4%1. of the totalrespondents agrees# ((1 remains neutral and =1*41 %1. disagrees about the factthat taste plays an important role in determining purchase decisions of its packaged

soup product"

In case of Maggi --1*)&1 (-1. of the total respondents agrees# (%1 remainsneutral and (1*%1 %1. disagrees about the fact that price plays an important role indetermining purchase decisions of it packaged soup product"

e. Brand Name

Maggi Knorr

11%

2%

22%

30%

9%

Brand Name

Strongly Agree

Agree

Neutral

Disagree

Strongly

Disagree

14%

2!%

20%

33%

6%

Brand Name

Strongly Agree

Agree

Neutral

Disagree

Strongly

Disagree

1B

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Interpretation2

In case of Knorr %=1 of the total respondents strongly agrees and (-1 of them agrees#(&1 stays neutral# 441 disagrees and ?1 strongly disagrees to the fact that >rand

Name plays an important role in influencing purchase decisions of its packaged soupproduct"

In case of Maggi %%1 of the total respondents strongly agrees and (;1 of them agrees#((1 stays neutral# 4&1 disagrees and 61 strongly disagrees to the fact that >randName plays an important role in influencing purchase decisions of its packaged soupproduct"

+= 3ood +or %ealth

Knorr Maggi

Interpretation

19

30%

23%24%

13%

10%

Good for Health

Strongly

Agree

Agree

Neutral

Disagree

Strongly

Disagree

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In the above figures we can see that in case of Knorr )41*4&1 (41. of the totalrespondents agrees# (=1 remains neutral and (41*%41 %&1. disagrees about thefact that healthiness plays an important role in determining purchase decisions of itspackaged soup product"

In the case of Maggi ?&1*4;1 ((1. of the total respondents agrees# (41 remainsneutral and %-1*%(1 )1. disagrees about the fact that healthiness plays animportant role in determining purchase decisions of its packaged soup product"

1indings And Analysis

Everall soup industry in India , appro0" $s %4& crores"

MaBor players , 7+:

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!lmost no presence in the $ural Markets

Aromotion Strategy

ffective !ds of Knorr compared to Maggirand Name >rand Name ( Cood for 7ealth Cood for 7ealth

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4e,ommendations2

@hen the study was conducted among the consumers we found that the

purchase of the packaged soup products for Maggi was due to its taste which is

actually very good but as a healthy food is a little bit less so Maggi shouldincrease the content of vegetables and in the likes so as to increase thehealthiness of the product"

Aricing of Knorr is little bit higher as compared to Maggi# so they should cut out

the prices to be more competitive"

Aresence of both the brands Knorr and Maggi in rural market is almost nil" So

therefore both the >rands Knorr and Maggi should promote themselves in theseareas through advertisements or other effective promotional means"

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$on,lusion2

a. Aricing of Maggi Soups are marginally lower than that of Knorr"b. Knorr Soups are more 7ealthier than Maggi but need to increase the range of

flavours"c. >oth the brands have huge opportunities in the $ural markets"d. There

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IMITATI0NS

This study is confined to a minimal sample si/e of %&& and may not reflect the opinionor response of the entire population in general" The results of this study are entirelyconfined to the responses of the elhi consumers and might deviate in terms of actualpopulation as a whole" $ecommendations given are entirely dependent on the survey

and the secondary analysis done in the report"

2#

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BIBI034A*%:2

httpEwwwhlcoinbrandsoodbrandsnorrasp/

httpEwwwtheresearchpediacomresearch:articlessop:market:in:india:acts:trends:and:opportnities

httpEarticleseconomictimesindiatimescom200>:0$:11news2B##2$101advertising:standards:concil:asci:nestle

httpEwwwhlcoinmediacentrenews2011indian:mothers:recogni

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ANN/>54/

8uestionnaire

%. Aersonal Information

Name 2 !ge 2 Se0 2 Arofession 2

(. 7ow often do you have packet soupL

EccasionallyOO Ence a weekOO

Twice a weekOO More than 4 times a weekOO

4. @hat brand comes first in your mind when you hear the word soup L

KnorrOO MaggiOO 8hing

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=. +sing a scale of % to ) *where % means strongly agree#( means agree#4 means

P""neutral#= means disagree and ) means strongly disagree.# rate the following mainP""factors that influences purchases decisions in a packaged soup industry"

Factors Maggi Knorr

!vailability

Arice

Time for cooking

Taste

>rand name

Cood for health