Project On Maggie
Project On Maggie
t 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.
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 Nestl in 1947. Today, Maggi is a leading culinary brand and part of the NESTL 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.
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, Nestl 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.
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.
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?
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?
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: Respondents 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.
RESEARCH OBJECTIVES
Sources of Brand equity of Maggi like Brand awareness, Brand image, Brand association, Brand recall
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.
DATA COLLECTION
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.
Yes No
45 40 35 30 25 20 15 10 5 0 Yes No
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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20
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10
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Q.3 You have maggi for? Breakfast Lunch Evening snacks Dinner
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Q-4 what comes first in your mind when you hear the word Maggi?
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?
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.
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.
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Q-7 With what products would you associate the brand Maggi?
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
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 _____________ _____________ _____________ ____________ Atta _____________
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.
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Expertise (Competent, Innovative, Market leader) Trustworthiness (Dependable and keep customers interest in mind) Liability ( Fun ,interesting) None of these
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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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Good for health. Ready to eat. Junk food Tasty / Fun eating
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Maggi masala Maggi vegetable attar noodles Maggi dal Atta noodles Maggi rice noodles mania Others
30 25 20 15 10 5 0 Maggi masala Maggi vegetable atta noodle Maggi dal atta noodle Maggi rice noodle mania others
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 noodle is more as compared to other maggi noodle.
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Yes No
40 35 30 25 20 15 10 5 0 Yes No
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
- Nestl 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 89% 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
Yes No
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?
Q-5 what is the brand that comes to your mind when we say the word noodles?
Q 6. Rate the following Maggi products with respect to frequency of purchase with 5 being the highest and 1 being the lowest.
Q-7 With what products would you associate the brand Maggi?
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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 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 _____________ _____________ _____________ ____________ Atta _____________
Expertise (Competent, Innovative, Market leader) Trustworthiness (Dependable and keep customers interest in mind) Liability ( Fun ,interesting) None of these
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Good for health. Ready to eat. Junk food Tasty / Fun eating
Maggi masala Maggi vegetable attar noodles Maggi dal Atta noodles Maggi rice noodles mania Others
Yes No
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BIBLOGRAPHY Research Methodology -by C.R.Kothari Research Methodolgy - Concept and cases -by Deepak Chwala
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