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1. INTRODUCTION OF FMCG INDUSTRY

                         What is the FMCG Industry?
                 "Resilient, Rewarding and really, really Fast."




FMCG industry, alternatively called as CPG (Consumer packaged goods)
industry primarily deals with the production, distribution and marketing of
consumer packaged goods. The Fast Moving Consumer Goods (FMCG) are
those consumables which are normally consumed by the consumers at a regular
interval. Some of the prime activities of FMCG industry are selling, marketing,
financing, purchasing, etc. The industry also engaged in operations, supply
chain, production and general management.

The Fast Moving Consumer Goods (FMCG) industry in India is one of the
largest sectors in the country and over the years has been growing at a very
steady pace. The sector consists of consumer non-durable products which
broadly consists, personal care, household care and food & beverages. The
Indian FMCG industry is largely classified as organised and unorganised. This
sector is also buoyed by intense competition. Besides competition, this industry
is also marked by a robust distribution network coupled with increasing influx
of MNCs across the entire value chain. This sector continues to remain highly
fragmented.


Shri Chimanbhai Patel Institute of Management and Research                Page 1
Industry Classification

The FMCG industry is volume driven and is characterised by low margins. The
products are branded and backed by marketing, heavy advertising, slick
packaging and strong distribution networks. The FMCG segment can be
classified under the premium segment and popular segment. The premium
segment caters mostly to the higher/upper middle class which is not as price
sensitive apart from being brand conscious. The price sensitive popular or mass
segment consists of consumers belonging mainly to the semi-urban or rural
areas who are not particularly brand conscious. Products sold in the popular
segment have considerably lower prices than their premium counterparts.
Following are the segment-wise product details along with the major players:




Shri Chimanbhai Patel Institute of Management and Research               Page 2
The facts about the FMCG Industry

FMCG, otherwise known as CPG, is one of the biggest industries in the world
and there are a lot of facts that stand the FMCG industry apart as a career
choice:

FMCG companies are behind the biggest brands in the world. FMCG is all
about names, the products which everyone recognises from trips to the
supermarket or from ads on television. The brands that make up this sector are
the high profile ones, the ones everybody knows and loves. Think Coca-Cola,
Dettol and Dove. This is an industry that puts you in living rooms, kitchens and
bathrooms across the globe.


The FMCG industry changes fast and is constantly evolving. It's fair to say
there is never a dull moment in FMCG. From the pace at which goods leave the
shelves to the rate of product innovation and career progression, things move
quickly. And it doesn't end there. The brands themselves are changing just as
quickly. 40% of brands on the top 100 list twenty years ago have already been
replaced by new names today.


FMCG firms thrive on employee and customer retention. Employee
investment is a big part of the ethos of the FMCG world. Perhaps it's because
we understand the importance of loyalty. Customer loyalty can make or break a
brand. Take Twinning‟s, for example – a century after they entered the top 100
brand list, they are still there and going strong. So it makes sense for FMCG
companies to encourage the loyalty of their employees too.


FMCG companies can beat the recession. This is an industry that has proved
itself very resilient to recession – with the majority of companies in the sector
weathering the financial storm in a way that very few others have managed.
Why? Well, consumers will always need to buy the products created by FMCG
companies. They may not buy big items like refrigerators or cars in a recession,
but floors still need to be cleaned, clothes need to be laundered and aches and
pains still need to be soothed.



Shri Chimanbhai Patel Institute of Management and Research                 Page 3
The FMCG industry thinks bigger – and better. This is an industry that
offers things on a whole new scale. Where else could you find yourself handling
$150 million accounts? Working in FMCG gives you the chance to be a part of
some global success stories and influence the way consumers shop for products.
FMCG firms are always thinking of the next great discovery or innovation –
always developing and ever-changing to meet consumer's needs.


FMCG has a history of delivering what consumers want. Some FMCG
companies' roots are over two centuries old – driving the industry to a value of
$570.1 billion. In short, to quote Sam Walton, founder of Wal-Mart: "High
expectations are the key to everything"




Shri Chimanbhai Patel Institute of Management and Research                Page 4
2. INTRODUCTION OF NESTLE COMPANY

Nestlé is...
...the world's leading nutrition, health and Wellness Company. Their mission of
"Good Food, Good Life" is to provide consumers with the best tasting, most
nutritious choices in a wide range of food and beverage categories and eating
occasions, from morning to night.

They believe that leadership is about behaviour, and they recognise that trust is
earned over a long period of time by consistently delivering on their promises.
Nestlé believes that it is only possible to create long-term sustainable value for
their shareholders if their behaviour, strategies and operations also create value
for the communities where they operate, for their business partners and of
course, for their consumers. They call this 'creating shared value'.

 The Nestlé Corporate Business Principles are at the basis of their company‟s
culture, developed over 140 years, which reflects the ideas of fairness, honesty
and long-term thinking.

Nestlé can trace its origins back to 1866, when the first European condensed
milk factory was opened in Cham, Switzerland, by the Anglo-Swiss Condensed
Milk Company. One year later, Henri Nestlé, a trained pharmacist, launched
one of the world‟s first prepared infant cereals „Farine lactée‟ in Vevey,
Switzerland.

The two companies merged in 1905 to become the Nestlé we know today,
with headquarters still based in the Swiss town of Vevey. They employ around
328 000 people and have factories or operations in almost every country in the
world. Nestlé sales for 2011 were almost CHF 83.7 bn.

"Good Food, Good Life" is the promise they commit to everyday, everywhere
– to enhance lives, throughout life, with good food and beverages.




Shri Chimanbhai Patel Institute of Management and Research                  Page 5
Ever since Henri Nestlé invented Farine Lactée to alleviate infant mortality,
Nestlé has been dedicated to enhancing lives. They strive to help consumers
care for themselves and their families by offering tastier and healthier choices.
Their dedication to great tasting, healthier and trusted products is tied to their
respect for the environment and the people they work with.

Business of the Nestle


Nestle is the largest food company in the world. It is present in all five
continents, has an annual turnover of 74.7 billion Swiss Frances. There are 509
factories are running in 83 countries, having 231,000 employs

Company Mission

       At Nestle, they believe that research can help them to make better food,
       so that people live a better life.
       Good food is the primary source of good health, so they are trying to
       make good food. To provide fresh and pure products to the customers,
       they introduced (SHE) Safety, Health and environment policy to protect
       health of their employs and keep clean their surrounding environment.

Company Vision

       Vision of Nestle Milkpak Company is to expand business according to
       the increasing demand of market.
       As per their company vision in 2020 production capacity of all plants
       working in Pakistan is being increased. So extension of Kabirwala Plant
       is the example of their company vision.




Shri Chimanbhai Patel Institute of Management and Research                  Page 6
3. INTRODUCTION TO MAGGI NOODLES

   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.




Shri Chimanbhai Patel Institute of Management and Research               Page 7
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 home made snack, a smart move. 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 a easy to cook snack that could be prepared in just two
   minutes. The formula clicked well and Maggi became a brand name.




Shri Chimanbhai Patel Institute of Management and Research                 Page 8
4. PRODUCT MIX, BRANDS AND PRODUCT
      OFFERING


   4.1 PRODUCTS MIX OF NESTLE:
   A product mix is the set of all products and items, a particular seller offers
   for sale. A product mix consists of various product lines. A company‟s
   product mix has a certain width, length, depth and consistency.

   Nestle is a well-known company all over the world and Pakistan. The
   company basically deals in food products as their logo says “Good Food,
   Good Life”.

    The width of a product mix refers to how many different product lines the
     company carries.

    The length of a product mix refers to the total number of items in the mix.

    The depth of a product mix refers to how many variants are offered of
     each product in the line.



Nestlé’s major products lines:

 Milk Products:-

    Nestle Milkpak UHT Milk

    Milkpak Butter

    Milkpak UHT Cream

    Milkpak Desi Ghee

    Nestle Everyday

    Nestle Nido




Shri Chimanbhai Patel Institute of Management and Research                 Page 9
 Chocolate Drinks:-

    Milo power

    Milo RTD



 Coffee:-

    Nescafe Classic



 Fruit Drinks:-

    Frost

    Nestle Orange Juice



 Dietetic & Infant Products:-

    Lactogen

    Cereals

    Nestle Rice

    Nestle Wheat

    Neslac



 Culinary Products:-

    Maggi Noodles

        o Maggi Vegetable Multigrainz Noodles

        o Maggi 2-Minute Noodles

        o Maggi Vegetable Atta Noodles

        o Maggi Cuppa Mania


Shri Chimanbhai Patel Institute of Management and Research   Page 10
 Maggi Cold Sauces



 Confectionery:-

    Nestle Milkpak

    Polo Mint

    Kitkat



 Water:-

    Nestle Pure Life




Shri Chimanbhai Patel Institute of Management and Research   Page 11
4.2 BRANDS OF NESTLE
Nestlé offers quality culinary and beverage products through a portfolio of
brands operators and consumers count on for great taste, consistency, and
convenience.

Major Brands of Nestle are as follows:




               MINOR'S®                                       HOT POCKETS®




               CHEF-MATE®                                    LEAN POCKETS®




               STOUFFER'S®                                   NESTLÉ® HOT COCOA




              STOUFFER'S® LEAN CUISINE®                        MAGGI®




Shri Chimanbhai Patel Institute of Management and Research              Page 12
NESCAFÉ®                                       NESTLÉ® TOLL HOUSE®




               COFFEE-MATE®                                       LIBBY'S®




                 NESTEA®                                      NESTLÉ® CARNATION®




                  NESTLÉ® DESSERT INGREDIENTS                     TRIO®




                                            NESCAFÉ® MILANO




Shri Chimanbhai Patel Institute of Management and Research                   Page 13
4.3 PRODUCTS OFFERING BY MAGGI




                                            MAGGI Vegetable Multigrainz Noodles
                                            MAGGI 2-Minute Noodles
                                            MAGGI Vegetable Atta Noodles
                                            MAGGI Cuppa Mania




       MAGGI Healthy Soups
       Sanjeevni MAGGI Healthy Cup Soup




                                                  MAGGI Sauces
                                                  MAGGI Pichkoo




Shri Chimanbhai Patel Institute of Management and Research               Page 14
MAGGI MAGIC Cubes
       MAGGI Bhuna Masala
       MAGGI Coconut Milk Powder
       MAGGI Pizza Mazza
       MAGGI Masala-ae-Magic




                                                MAGGI NUTRI-LICIOUS PAZZTA




Shri Chimanbhai Patel Institute of Management and Research           Page 15
5. MARKET SEGMENTATION, TARGETING
      AND POSITIONING

       Segmentation is the process of grouping people or
       organizations within a market according to similar needs,
       characteristics, or behaviours.
       Targeting is the actual selection of the segment you want to
       serve the target market is the group of people or organizations
       whose needs a product is specifically designed to satisfy
       Positioning is the use of marketing to enable people to form a
       mental image of your product in their minds (relative to other
       products)




Shri Chimanbhai Patel Institute of Management and Research      Page 16
5.1 Bases for Segmenting Consumer Markets

A. Geographic Segmentation:
Division of the market into different geographical units such as nations, cities,
states, regions, neighbourhoods etc.
       Region: South India, Western Region, North, East
       City: Class
       Rural, urban, semi urban areas


B. Demographic Segmentation:
The market is divided on the basis of variables such as age, family size, family
life cycle, gender, income, occupation, education, religion etc. Demographic
variables are easy to measure and are directly associated with customer.


C. Psychographic Segmentation:
Here buyers are divided into different groups on the basis of
psychological/personality traits, lifestyles or values.
     Lifestyle: Culture-oriented, sports oriented, outdoor oriented.
     Classification is done on three parameters: AIO Activities, lifestyles or
     values.
     Personality: Compulsive, gregarious, authoritarian, ambitious


D. Behavioural segmentation:
Buyers are divided on the basis of their knowledge of attitude toward, use of, or
response to a product. The behavioural variables are as follows:

       Usage rate: Light, Medium, Heavy
       Loyalty status: None, medium, strong, absolute
       Readiness stage: Unaware, aware, informed, desirous, intending to buy
       Attitude toward product: Enthusiastic, positive, indifferent, negative,
       hostile




Shri Chimanbhai Patel Institute of Management and Research                Page 17
Evaluating and Selecting Market Segments

Five patterns of target market selection that can be followed are:

       Single Segment Concentration: Concentrated Marketing where the
       firms gain a can strong knowledge of segments needs and acquires a
       strong market presence.
       Selective Specialization: A firm selects a number of segments. Each
       objectively attractive and appropriate, there may be little or no synergy
       between the segment.
       Product Specialization: The firm makes a certain product that it sells to
       several different market segments.
       Market Specialization: The firm concentrates on serving many needs of
       a particular customer.
       Full Market Coverage: The firm attempts to serve all customer groups
       with all products they may need.




Shri Chimanbhai Patel Institute of Management and Research               Page 18
5.2 Target segment of Maggi noodles

Maggi 2 Minute Instant Noodles is already associated with convenience and
taste and is currently accepted as a valid filling snack between meals. Maggi
will continue to leverage its brand equity and target the following segments for
this product.
          Children and Teenagers’: This is a large segment and is Maggi‟s
          stronghold. The age group between 4 and 14 years has largely similar
          tastes and is traditionally targeted by Maggi. These segments perceive
          Maggi instant noodles as a welcome change in taste from the regular
          Indian fare and they are fascinated by the curly shaped noodles. For
          these segments innovative products also have novelty value, however,
          certain dominant preferences emerge. Realizing this early, Maggi
          shifted focus from the lady of the house to the end consumer i.e.
          children themselves ending up as the market leader of the instant
          noodles segment. Early buy in of this segment will help Maggi to sell
          in other segments in future.

          Studying Age: The studying age segment though not traditionally
          targeted specifically has been devouring Maggi 2 minute noodles. The
          proposition of convenience of cooking as well as that of a tasty filling
          snack attracts this segment which due to erratic schedules keeps
          missing their regular meals.

          Office Goers and working women: The Company also targeted this
          segment people because they were the one who needs refreshment
          time to time because of hectic schedule and with would take their
          minimal time. So by keeping this aspect into consideration, the
          company introduce the Cuppa mania, which is a type of noodle which
          takes less time to cook and satisfy the hunger as well.

          Health Conscious People: The Company is also focusing on the
          heath aspect. They introduce Veg atta noodle for health conscious
          people. So they also launch Health Awareness campaign to educate
          consumers about the benefits of health food. They also sponsor health
          camps, publish health information and build awareness among the
          masses.

Shri Chimanbhai Patel Institute of Management and Research                 Page 19
5.3 Positioning of Maggi

Maggi 2 Minute Noodles will continue with its current positioning of
convenience and as a “fast to cook, good to eat” snack as this seems to be
working well.

To prevent Top Ramen, the main competitor, from eating into its market share
some product innovation is required as otherwise Maggi may get stereotyped as
an unexciting product. Top Ramen is following a cost differentiation technique.

To deal with this Maggi has to position itself as a differentiated product. The
market is very sensitive to taste and rejects any flavour it dislikes with Maggi
having learnt it the hard way, thus the product cannot be greatly differentiated
with on basis of taste.

On the other hand Maggi has to deal with the negative perception of Maggi has
of being unhealthy in an increasingly health conscious market, a major threat in
the current scenario.

Both these problems can be tackled by positioning Maggi as a snack with
nutritional value. The recent launch of “Veg Atta Noodles” and “Dal Atta
Noodles” with the promise of good nutritional value ventures in this area.




Shri Chimanbhai Patel Institute of Management and Research               Page 20
6. FOUR P’s OF MARKETING MIX
Marketing Mix
A mixture of several ideas and plans followed by a marketing representative to
promote a particular product or brand is called marketing mix.
The marketer‟s task is to device marketing activities and assembles fully
integrated marketing programs to create, communicate, and deliver value for
consumers. Marketing activities come in all forms. McCarthy classified these
activities as marketing mix tools of four broad kinds, which he called the four
Ps of marketing; product, price, place and promotion.


Elements of Marketing Mix




Shri Chimanbhai Patel Institute of Management and Research              Page 21
6.1 PRODUCT
Definition:

A product is anything that can be offered to the market to satisfy a want or need,
including physical goods, services, experiences, events, persons, places,
properties, organizations, information and ideas.

Maggi noodles Products In India:

Nestle unleashed brand maggi in India Almost 25 years ago in 1983 with launch
of its traditional 2 minutes noodles in its masala, tomato and chicken flavours,
followed by its curry flavour some years down the line.

Maggi was launched in India at the time when instant noodle was not that well
known a category.

When nestle India launched maggi in country, it used the tagline, „fast to cook
and good to eat‟, to not only promote the product‟ but also to educate the ever
growing aspirant consumer about the advantages of using it.

Products of Maggi Noodles:

    A.   MAGGI-2 minute noodles
    B.   MAGGI Vegetable atta Noodles
    C.   MAGGI Cuppa Mania
    D.   MAGGI Vegetable Multigrainz Noodle




Shri Chimanbhai Patel Institute of Management and Research                 Page 22
MAGGI 2-MINUTE Noodles is one of the largest & most loved snack food
brands that define the Instant Noodles category in India. We‟ve recently
launched two new flavors in the short space of two months – Thrillin Curry &
Tricky Tomato Noodles. Blending Emotions with ingredients, the two new
flavors deliver strongly on “Taste Bhi Health Bhi”. It is now available in 5
delectable flavours: Masala, Chicken, Tricky Tomato, Thrillin Curry &
Romantic Capsica.




An offering that exemplifies „taste bhi health bhi‟, MAGGI vegetable atta
noodles is tasty because it is loaded with everyone‟s favourites MAGGI
„masala‟ and healthy because it now has more real vegetables and is packed
with the power of fibre. 85g of maggi vegetable atta noodles provides dietary
fibre equal to 3 prepared ratios, 20g each.




Shri Chimanbhai Patel Institute of Management and Research            Page 23
MAGGI, the pioneer and creator of „Taste Bhi Health BHi‟ has introduced another great
testing and healthy variant in its popular range of MAGGI Noodles.

MAGGI Vegetable Multigrainz Noodle is made with Ragi, Corn, Jowar and
Wheat. It offers the consumer multi-„gun‟ as it is a source of Protein, Calcium
and Fibre and has added vegetables. It also provides the spicy test to their
customers. The inspiration for the product comes from the growing consumer
preference for a healthier lifestyle and the deep understanding that magi has
developed about Indian food habits and culture.




Since in today‟s fast-paced busy life, multitasking is a reality, you need
something that fits with your rushed lifestyle – a product which is tasty and
healthy, is convenient to prepare and eat and also satiates your hunger.
Maggi cuppa mania is a combination of all the above. In an easy to carry on-
the-go cup format, MAGGI cuppa mania comes in two mouth watering variants
– masala yo! And chilly chow yo!
 It is packed with real vegetables and the goodness of calcium, just add garam
paani to the noodles and voila! A cupful of delicious MAGGI cuppa mania is
ready for you to eat.




Shri Chimanbhai Patel Institute of Management and Research                    Page 24
6.2 PRICE
Introduction:

Price of the company‟s product is considered as one of the 4 p‟s of marketing. It
is the most important aspect for any company in terms of decision making as it
directly affects the sales and profit of the company.

These are the prices which are set by the company for the different flavours of
MAGGI Noodles.

MAGGI 2 Minute Noodles                     Pack Size (gm)     Price (Rs)
Masala                                           50                5
Masala                                          100               10
Masala                                          200               20
Masala                                          400               38
Masala                                          600               54
Masala                                          800               72
Chicken                                         100               10
Curry                                           100               10
Tomato                                          100               10
Vegetable Atta Noodles                          100               13
Vegetable Atta Noodles                          400               50


As we talk about maggi, it is very popular now a day in all over the world and
its main customers are children and youngsters. As we know that MAGGI
Noodles price is not very high, but there are so many competitors in the market
so company can not set price different from their competitors. Currently
company is having the tough competition with Sun feast Yuppie Noodles and
Foodles. One advantage of the company is that noodle‟s packets are available
in different size comparing it with the brand called Top Ramen.




Shri Chimanbhai Patel Institute of Management and Research                 Page 25
6.3 PLACE
Place refers to the location where the products are available and can be sold or
purchased. Buyers can purchase products either from physical markets or from
virtual markets. In a physical market, buyers and sellers can physically meet and
interact with each other whereas in a virtual market buyers and sellers meet
through internet. Thus with the ease and options through which you make your
product or service available to your customers will have an effect on your sales
volumes.

Physical Distribution of Maggi noodles:

To keep up with the growing trends in the Noodles sector, an intensive dealer-
distributor network is desired. Maggi has a well established distribution
network.

Maggi Distribution Network -

                                     Maggi Factory



                                  Factory Warehouse




                                        Agent




                                      Distributors



                                      Wholesalers



                                    Direct Retailers




                                    End Consumers




Shri Chimanbhai Patel Institute of Management and Research                Page 26
Thus from the chart it can be said that the distribution network is well spread
almost everywhere in India, as it is easily available in all local stores, retail store
etc.

But in order to strengthen the distribution, NIL should expand its market to
Rural India with products targeted to the market. Thus this can be one of the
way by which they can increase its volume of sales. So major focus should be
done to this market as well.




Shri Chimanbhai Patel Institute of Management and Research                     Page 27
6.4 PROMOTION
Promotion refers to the various strategies and ideas implemented by the
marketers to make the end - users aware of their brand. Promotion includes
various techniques employed to promote and make a brand popular amongst the
masses.
Promotion can be through any of the following ways:
     Advertising
Print media, Television, radio are effective ways to entice customers and
make them aware of the brand‟s existence.
Billboards, hoardings, banners installed intelligently at strategic locations like
heavy traffic areas, crossings, railway stations, bus stands attract the passing
individuals towards a particular brand.
Taglines also increase the recall value of the brand amongst the customers.
     Word of mouth
One satisfied customer brings ten more customers along with him whereas
one dissatisfied customer takes away ten more customers. That‟s the
importance of word of mouth. Positive word of mouth goes a long way in
promoting brands amongst the customers.


Initial Strategies of Maggi
Maggi has faced lot of hurdles in its journey in India. The basic problem the
brand faced is the Indian Psyche. Initially Nestle tried to position the Noodles in
the platform of convenience targeting the working women. However, the sales
of Maggi was not picking up despite of heavy Media Advertising.

To overcome this NIL conducted a research. NIL's promotions positioned the
noodles as a 'convenience product', for mothers & as a 'fun' product for children.
The noodles' tagline, 'Fast to Cook Good to Eat' was also in keeping with this
positioning.




Shri Chimanbhai Patel Institute of Management and Research                   Page 28
 Print Ads
Maggi does not focus heavily on print media during its launch since its initial
target audience was mothers and kids. But later on some advertisements in the
print media were used to highlight the convenience factor of Maggi.




      Events and Experiences
Hold the Online Maggie Recipe Challenge, wherein innovative recipes with
Maggi Noodles as a base are invited. Winning entries are compiled into an e-
cookbook which is published online




Shri Chimanbhai Patel Institute of Management and Research              Page 29
 Sales promotion
The company also adopted sales promotion activity in order to achieve
following mentioned objectives.

    To introduce new products

    To attract new customers and retain the existing ones

    To maintain sales of seasonal products

    To meet the challenge of competition



Various Tools used

    Exchange schemes

    Price-off offer

    Coupons

    Scratch and win offer

    Money Back offer



Several initiatives were also taken by Maggi Noodles or Retailers sales
promotion. This can be as follows

    Maggi was distributed free in schools and offices to promote trial

    Return gifts on empty packs

    Maggi fun book and stickers with funky animal facts.




Shri Chimanbhai Patel Institute of Management and Research                Page 30
 Public relation
    The Maggi Club - the children under 14 were invited by press
     advertisements and distribution of leaflets to become a member of maggi
     club by sending logos cut from 5 empty maggi wrappers. Maggi projected
     it as “maggi clubbers are fun lovers” and intended to use it as reference
     group.

    Benefits offered to maggi-clubbers are various games like Snap safari
     game, Cap and mask sets, travel India game, Disney today comic. To
     obtain each gift the member has to send 5 wrappers as purchase proof.

    Some special privileges were given to regular members time to time.

    The company also Organized Maggi school quizzes and sketching.

RESULTS OF PR ACTIVITY:

    Getting closer to regular customer.

    Boosted the sales.

    Making valuable direct marketing database.

    Recently, again, they have started Maggi fan club. This time it is
     operating online and they are providing user name and password.




Shri Chimanbhai Patel Institute of Management and Research             Page 31
 Displays




Shri Chimanbhai Patel Institute of Management and Research   Page 32
6.5 The Portfolio Matrix applied in MAGGI Noodles Products:
The Boston consulting group developed the business portfolio matrix-shows the
linkage between the growth rate of the firm and relative competitive position of
the firm, identified by the market share.



                The Boston Consulting Group’s
                       Porfolio Matrix

            High

                                STARS                          QUESTION MARKS
Market                       (MAGGI Veg Atta                 (MAGGI Dal Atta Noodles)
Growth                          Noodles)
Rate

                            CASH COWS                               DOGS
                        (MAGGI Masala Flavour)                (MAGGI Tomato ,curry
                                                                   flavour)
            Low                       Low                             High
                                                Relative Market Share
STARS:

Stars is the portion of the market where the market position and growth both are
very high thus it is very good position of the company addressed by the product-
MAGGI Veg Atta Noodles.



QUESTION MARKS:

Business in these areas states the weak market share with high growth rate. Here
it requires the high cash requirement to come into the stars areas. Thus we can
take the product is MAGGI Dal Atta Noodles.




Shri Chimanbhai Patel Institute of Management and Research                     Page 33
CASH COWS:

Cash cows are with the strong market position and low growth rate. Such
markets are usually in a position to make their product favourite with the low
price in the market. Here the example is MAGGI Masala Flavours which is very
popular in today‟s market.



DOGS:

Here the marketing position and market growth rate both are very low and it is
not profitable for the company. Thus company must have to stop the production
of the products coming under this area.




Shri Chimanbhai Patel Institute of Management and Research             Page 34
7. CONCLUSION

Maggi though has been able to differentiate itself from other Noodles, Maggi
Being taken as generic to Noodles is hampering other extended product
category. Competitors have high grounds to capture the market differentiating
then from being Maggi. It makes others possible product category vulnerable if
lunched under Maggi. So to avoid proliferation of brand and introduce new
products to capture opportunities in other snacks and ready to eat product
category NIL has to introduce new branding strategy. By doing so, NIL could
avoid the draw backs associated with the Maggi brand. It could position new
brand in competition with other competitor‟s brand where there is no fit of
product with the Maggi brand.




Shri Chimanbhai Patel Institute of Management and Research             Page 35
8. BIBLIOGRAPHY


    http://www.nestle.in/brands/pdca/Pages/MAGGICUPPAMANIA.aspx

    http://virtualaccuracy.com/2007/10/definition-of-marketing-mix-product-price-place-
     promotion/

      http://www.managementstudyguide.com/marketing-mix.htm

    http://www.maggi.in/maggi_multigrainz_noodles.aspx

    http://www.maggi.in/two_minutes_maggi_noodles.aspx

    http://www.maggi.in/vegetables_atta_noodles.aspx

    http://www.maggi.in/cuppamania.aspx

    www.maggi.in/maggi_multigrainz_noodles.aspx

    www.slideshare.net/parves190/maggi-noodles-8279990

    http://www.scribd.com/doc/10552265/Nestle

    http://www.maggi.in/range.aspx

    http://www.nestleprofessional.com/united-states/en/BrandsAndProducts/Pages/default.aspx

    http://www.maggi.in/maggi_multigrainz_noodles.aspx

    http://www.maggi.in/two_minutes_maggi_noodles.aspx




Shri Chimanbhai Patel Institute of Management and Research                                     Page 36

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Marketing project maggi

  • 1. 1. INTRODUCTION OF FMCG INDUSTRY What is the FMCG Industry? "Resilient, Rewarding and really, really Fast." FMCG industry, alternatively called as CPG (Consumer packaged goods) industry primarily deals with the production, distribution and marketing of consumer packaged goods. The Fast Moving Consumer Goods (FMCG) are those consumables which are normally consumed by the consumers at a regular interval. Some of the prime activities of FMCG industry are selling, marketing, financing, purchasing, etc. The industry also engaged in operations, supply chain, production and general management. The Fast Moving Consumer Goods (FMCG) industry in India is one of the largest sectors in the country and over the years has been growing at a very steady pace. The sector consists of consumer non-durable products which broadly consists, personal care, household care and food & beverages. The Indian FMCG industry is largely classified as organised and unorganised. This sector is also buoyed by intense competition. Besides competition, this industry is also marked by a robust distribution network coupled with increasing influx of MNCs across the entire value chain. This sector continues to remain highly fragmented. Shri Chimanbhai Patel Institute of Management and Research Page 1
  • 2. Industry Classification The FMCG industry is volume driven and is characterised by low margins. The products are branded and backed by marketing, heavy advertising, slick packaging and strong distribution networks. The FMCG segment can be classified under the premium segment and popular segment. The premium segment caters mostly to the higher/upper middle class which is not as price sensitive apart from being brand conscious. The price sensitive popular or mass segment consists of consumers belonging mainly to the semi-urban or rural areas who are not particularly brand conscious. Products sold in the popular segment have considerably lower prices than their premium counterparts. Following are the segment-wise product details along with the major players: Shri Chimanbhai Patel Institute of Management and Research Page 2
  • 3. The facts about the FMCG Industry FMCG, otherwise known as CPG, is one of the biggest industries in the world and there are a lot of facts that stand the FMCG industry apart as a career choice: FMCG companies are behind the biggest brands in the world. FMCG is all about names, the products which everyone recognises from trips to the supermarket or from ads on television. The brands that make up this sector are the high profile ones, the ones everybody knows and loves. Think Coca-Cola, Dettol and Dove. This is an industry that puts you in living rooms, kitchens and bathrooms across the globe. The FMCG industry changes fast and is constantly evolving. It's fair to say there is never a dull moment in FMCG. From the pace at which goods leave the shelves to the rate of product innovation and career progression, things move quickly. And it doesn't end there. The brands themselves are changing just as quickly. 40% of brands on the top 100 list twenty years ago have already been replaced by new names today. FMCG firms thrive on employee and customer retention. Employee investment is a big part of the ethos of the FMCG world. Perhaps it's because we understand the importance of loyalty. Customer loyalty can make or break a brand. Take Twinning‟s, for example – a century after they entered the top 100 brand list, they are still there and going strong. So it makes sense for FMCG companies to encourage the loyalty of their employees too. FMCG companies can beat the recession. This is an industry that has proved itself very resilient to recession – with the majority of companies in the sector weathering the financial storm in a way that very few others have managed. Why? Well, consumers will always need to buy the products created by FMCG companies. They may not buy big items like refrigerators or cars in a recession, but floors still need to be cleaned, clothes need to be laundered and aches and pains still need to be soothed. Shri Chimanbhai Patel Institute of Management and Research Page 3
  • 4. The FMCG industry thinks bigger – and better. This is an industry that offers things on a whole new scale. Where else could you find yourself handling $150 million accounts? Working in FMCG gives you the chance to be a part of some global success stories and influence the way consumers shop for products. FMCG firms are always thinking of the next great discovery or innovation – always developing and ever-changing to meet consumer's needs. FMCG has a history of delivering what consumers want. Some FMCG companies' roots are over two centuries old – driving the industry to a value of $570.1 billion. In short, to quote Sam Walton, founder of Wal-Mart: "High expectations are the key to everything" Shri Chimanbhai Patel Institute of Management and Research Page 4
  • 5. 2. INTRODUCTION OF NESTLE COMPANY Nestlé is... ...the world's leading nutrition, health and Wellness Company. Their mission of "Good Food, Good Life" is to provide consumers with the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions, from morning to night. They believe that leadership is about behaviour, and they recognise that trust is earned over a long period of time by consistently delivering on their promises. Nestlé believes that it is only possible to create long-term sustainable value for their shareholders if their behaviour, strategies and operations also create value for the communities where they operate, for their business partners and of course, for their consumers. They call this 'creating shared value'. The Nestlé Corporate Business Principles are at the basis of their company‟s culture, developed over 140 years, which reflects the ideas of fairness, honesty and long-term thinking. Nestlé can trace its origins back to 1866, when the first European condensed milk factory was opened in Cham, Switzerland, by the Anglo-Swiss Condensed Milk Company. One year later, Henri Nestlé, a trained pharmacist, launched one of the world‟s first prepared infant cereals „Farine lactée‟ in Vevey, Switzerland. The two companies merged in 1905 to become the Nestlé we know today, with headquarters still based in the Swiss town of Vevey. They employ around 328 000 people and have factories or operations in almost every country in the world. Nestlé sales for 2011 were almost CHF 83.7 bn. "Good Food, Good Life" is the promise they commit to everyday, everywhere – to enhance lives, throughout life, with good food and beverages. Shri Chimanbhai Patel Institute of Management and Research Page 5
  • 6. Ever since Henri Nestlé invented Farine Lactée to alleviate infant mortality, Nestlé has been dedicated to enhancing lives. They strive to help consumers care for themselves and their families by offering tastier and healthier choices. Their dedication to great tasting, healthier and trusted products is tied to their respect for the environment and the people they work with. Business of the Nestle Nestle is the largest food company in the world. It is present in all five continents, has an annual turnover of 74.7 billion Swiss Frances. There are 509 factories are running in 83 countries, having 231,000 employs Company Mission At Nestle, they believe that research can help them to make better food, so that people live a better life. Good food is the primary source of good health, so they are trying to make good food. To provide fresh and pure products to the customers, they introduced (SHE) Safety, Health and environment policy to protect health of their employs and keep clean their surrounding environment. Company Vision Vision of Nestle Milkpak Company is to expand business according to the increasing demand of market. As per their company vision in 2020 production capacity of all plants working in Pakistan is being increased. So extension of Kabirwala Plant is the example of their company vision. Shri Chimanbhai Patel Institute of Management and Research Page 6
  • 7. 3. INTRODUCTION TO MAGGI NOODLES 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. Shri Chimanbhai Patel Institute of Management and Research Page 7
  • 8. 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 home made snack, a smart move. 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 a easy to cook snack that could be prepared in just two minutes. The formula clicked well and Maggi became a brand name. Shri Chimanbhai Patel Institute of Management and Research Page 8
  • 9. 4. PRODUCT MIX, BRANDS AND PRODUCT OFFERING 4.1 PRODUCTS MIX OF NESTLE: A product mix is the set of all products and items, a particular seller offers for sale. A product mix consists of various product lines. A company‟s product mix has a certain width, length, depth and consistency. Nestle is a well-known company all over the world and Pakistan. The company basically deals in food products as their logo says “Good Food, Good Life”.  The width of a product mix refers to how many different product lines the company carries.  The length of a product mix refers to the total number of items in the mix.  The depth of a product mix refers to how many variants are offered of each product in the line. Nestlé’s major products lines:  Milk Products:-  Nestle Milkpak UHT Milk  Milkpak Butter  Milkpak UHT Cream  Milkpak Desi Ghee  Nestle Everyday  Nestle Nido Shri Chimanbhai Patel Institute of Management and Research Page 9
  • 10.  Chocolate Drinks:-  Milo power  Milo RTD  Coffee:-  Nescafe Classic  Fruit Drinks:-  Frost  Nestle Orange Juice  Dietetic & Infant Products:-  Lactogen  Cereals  Nestle Rice  Nestle Wheat  Neslac  Culinary Products:-  Maggi Noodles o Maggi Vegetable Multigrainz Noodles o Maggi 2-Minute Noodles o Maggi Vegetable Atta Noodles o Maggi Cuppa Mania Shri Chimanbhai Patel Institute of Management and Research Page 10
  • 11.  Maggi Cold Sauces  Confectionery:-  Nestle Milkpak  Polo Mint  Kitkat  Water:-  Nestle Pure Life Shri Chimanbhai Patel Institute of Management and Research Page 11
  • 12. 4.2 BRANDS OF NESTLE Nestlé offers quality culinary and beverage products through a portfolio of brands operators and consumers count on for great taste, consistency, and convenience. Major Brands of Nestle are as follows: MINOR'S® HOT POCKETS® CHEF-MATE® LEAN POCKETS® STOUFFER'S® NESTLÉ® HOT COCOA STOUFFER'S® LEAN CUISINE® MAGGI® Shri Chimanbhai Patel Institute of Management and Research Page 12
  • 13. NESCAFÉ® NESTLÉ® TOLL HOUSE® COFFEE-MATE® LIBBY'S® NESTEA® NESTLÉ® CARNATION® NESTLÉ® DESSERT INGREDIENTS TRIO® NESCAFÉ® MILANO Shri Chimanbhai Patel Institute of Management and Research Page 13
  • 14. 4.3 PRODUCTS OFFERING BY MAGGI MAGGI Vegetable Multigrainz Noodles MAGGI 2-Minute Noodles MAGGI Vegetable Atta Noodles MAGGI Cuppa Mania MAGGI Healthy Soups Sanjeevni MAGGI Healthy Cup Soup MAGGI Sauces MAGGI Pichkoo Shri Chimanbhai Patel Institute of Management and Research Page 14
  • 15. MAGGI MAGIC Cubes MAGGI Bhuna Masala MAGGI Coconut Milk Powder MAGGI Pizza Mazza MAGGI Masala-ae-Magic MAGGI NUTRI-LICIOUS PAZZTA Shri Chimanbhai Patel Institute of Management and Research Page 15
  • 16. 5. MARKET SEGMENTATION, TARGETING AND POSITIONING Segmentation is the process of grouping people or organizations within a market according to similar needs, characteristics, or behaviours. Targeting is the actual selection of the segment you want to serve the target market is the group of people or organizations whose needs a product is specifically designed to satisfy Positioning is the use of marketing to enable people to form a mental image of your product in their minds (relative to other products) Shri Chimanbhai Patel Institute of Management and Research Page 16
  • 17. 5.1 Bases for Segmenting Consumer Markets A. Geographic Segmentation: Division of the market into different geographical units such as nations, cities, states, regions, neighbourhoods etc. Region: South India, Western Region, North, East City: Class Rural, urban, semi urban areas B. Demographic Segmentation: The market is divided on the basis of variables such as age, family size, family life cycle, gender, income, occupation, education, religion etc. Demographic variables are easy to measure and are directly associated with customer. C. Psychographic Segmentation: Here buyers are divided into different groups on the basis of psychological/personality traits, lifestyles or values. Lifestyle: Culture-oriented, sports oriented, outdoor oriented. Classification is done on three parameters: AIO Activities, lifestyles or values. Personality: Compulsive, gregarious, authoritarian, ambitious D. Behavioural segmentation: Buyers are divided on the basis of their knowledge of attitude toward, use of, or response to a product. The behavioural variables are as follows: Usage rate: Light, Medium, Heavy Loyalty status: None, medium, strong, absolute Readiness stage: Unaware, aware, informed, desirous, intending to buy Attitude toward product: Enthusiastic, positive, indifferent, negative, hostile Shri Chimanbhai Patel Institute of Management and Research Page 17
  • 18. Evaluating and Selecting Market Segments Five patterns of target market selection that can be followed are: Single Segment Concentration: Concentrated Marketing where the firms gain a can strong knowledge of segments needs and acquires a strong market presence. Selective Specialization: A firm selects a number of segments. Each objectively attractive and appropriate, there may be little or no synergy between the segment. Product Specialization: The firm makes a certain product that it sells to several different market segments. Market Specialization: The firm concentrates on serving many needs of a particular customer. Full Market Coverage: The firm attempts to serve all customer groups with all products they may need. Shri Chimanbhai Patel Institute of Management and Research Page 18
  • 19. 5.2 Target segment of Maggi noodles Maggi 2 Minute Instant Noodles is already associated with convenience and taste and is currently accepted as a valid filling snack between meals. Maggi will continue to leverage its brand equity and target the following segments for this product. Children and Teenagers’: This is a large segment and is Maggi‟s stronghold. The age group between 4 and 14 years has largely similar tastes and is traditionally targeted by Maggi. These segments perceive Maggi instant noodles as a welcome change in taste from the regular Indian fare and they are fascinated by the curly shaped noodles. For these segments innovative products also have novelty value, however, certain dominant preferences emerge. Realizing this early, Maggi shifted focus from the lady of the house to the end consumer i.e. children themselves ending up as the market leader of the instant noodles segment. Early buy in of this segment will help Maggi to sell in other segments in future. Studying Age: The studying age segment though not traditionally targeted specifically has been devouring Maggi 2 minute noodles. The proposition of convenience of cooking as well as that of a tasty filling snack attracts this segment which due to erratic schedules keeps missing their regular meals. Office Goers and working women: The Company also targeted this segment people because they were the one who needs refreshment time to time because of hectic schedule and with would take their minimal time. So by keeping this aspect into consideration, the company introduce the Cuppa mania, which is a type of noodle which takes less time to cook and satisfy the hunger as well. Health Conscious People: The Company is also focusing on the heath aspect. They introduce Veg atta noodle for health conscious people. So they also launch Health Awareness campaign to educate consumers about the benefits of health food. They also sponsor health camps, publish health information and build awareness among the masses. Shri Chimanbhai Patel Institute of Management and Research Page 19
  • 20. 5.3 Positioning of Maggi Maggi 2 Minute Noodles will continue with its current positioning of convenience and as a “fast to cook, good to eat” snack as this seems to be working well. To prevent Top Ramen, the main competitor, from eating into its market share some product innovation is required as otherwise Maggi may get stereotyped as an unexciting product. Top Ramen is following a cost differentiation technique. To deal with this Maggi has to position itself as a differentiated product. The market is very sensitive to taste and rejects any flavour it dislikes with Maggi having learnt it the hard way, thus the product cannot be greatly differentiated with on basis of taste. On the other hand Maggi has to deal with the negative perception of Maggi has of being unhealthy in an increasingly health conscious market, a major threat in the current scenario. Both these problems can be tackled by positioning Maggi as a snack with nutritional value. The recent launch of “Veg Atta Noodles” and “Dal Atta Noodles” with the promise of good nutritional value ventures in this area. Shri Chimanbhai Patel Institute of Management and Research Page 20
  • 21. 6. FOUR P’s OF MARKETING MIX Marketing Mix A mixture of several ideas and plans followed by a marketing representative to promote a particular product or brand is called marketing mix. The marketer‟s task is to device marketing activities and assembles fully integrated marketing programs to create, communicate, and deliver value for consumers. Marketing activities come in all forms. McCarthy classified these activities as marketing mix tools of four broad kinds, which he called the four Ps of marketing; product, price, place and promotion. Elements of Marketing Mix Shri Chimanbhai Patel Institute of Management and Research Page 21
  • 22. 6.1 PRODUCT Definition: A product is anything that can be offered to the market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information and ideas. Maggi noodles Products In India: Nestle unleashed brand maggi in India Almost 25 years ago in 1983 with launch of its traditional 2 minutes noodles in its masala, tomato and chicken flavours, followed by its curry flavour some years down the line. Maggi was launched in India at the time when instant noodle was not that well known a category. When nestle India launched maggi in country, it used the tagline, „fast to cook and good to eat‟, to not only promote the product‟ but also to educate the ever growing aspirant consumer about the advantages of using it. Products of Maggi Noodles: A. MAGGI-2 minute noodles B. MAGGI Vegetable atta Noodles C. MAGGI Cuppa Mania D. MAGGI Vegetable Multigrainz Noodle Shri Chimanbhai Patel Institute of Management and Research Page 22
  • 23. MAGGI 2-MINUTE Noodles is one of the largest & most loved snack food brands that define the Instant Noodles category in India. We‟ve recently launched two new flavors in the short space of two months – Thrillin Curry & Tricky Tomato Noodles. Blending Emotions with ingredients, the two new flavors deliver strongly on “Taste Bhi Health Bhi”. It is now available in 5 delectable flavours: Masala, Chicken, Tricky Tomato, Thrillin Curry & Romantic Capsica. An offering that exemplifies „taste bhi health bhi‟, MAGGI vegetable atta noodles is tasty because it is loaded with everyone‟s favourites MAGGI „masala‟ and healthy because it now has more real vegetables and is packed with the power of fibre. 85g of maggi vegetable atta noodles provides dietary fibre equal to 3 prepared ratios, 20g each. Shri Chimanbhai Patel Institute of Management and Research Page 23
  • 24. MAGGI, the pioneer and creator of „Taste Bhi Health BHi‟ has introduced another great testing and healthy variant in its popular range of MAGGI Noodles. MAGGI Vegetable Multigrainz Noodle is made with Ragi, Corn, Jowar and Wheat. It offers the consumer multi-„gun‟ as it is a source of Protein, Calcium and Fibre and has added vegetables. It also provides the spicy test to their customers. The inspiration for the product comes from the growing consumer preference for a healthier lifestyle and the deep understanding that magi has developed about Indian food habits and culture. Since in today‟s fast-paced busy life, multitasking is a reality, you need something that fits with your rushed lifestyle – a product which is tasty and healthy, is convenient to prepare and eat and also satiates your hunger. Maggi cuppa mania is a combination of all the above. In an easy to carry on- the-go cup format, MAGGI cuppa mania comes in two mouth watering variants – masala yo! And chilly chow yo! It is packed with real vegetables and the goodness of calcium, just add garam paani to the noodles and voila! A cupful of delicious MAGGI cuppa mania is ready for you to eat. Shri Chimanbhai Patel Institute of Management and Research Page 24
  • 25. 6.2 PRICE Introduction: Price of the company‟s product is considered as one of the 4 p‟s of marketing. It is the most important aspect for any company in terms of decision making as it directly affects the sales and profit of the company. These are the prices which are set by the company for the different flavours of MAGGI Noodles. MAGGI 2 Minute Noodles Pack Size (gm) Price (Rs) Masala 50 5 Masala 100 10 Masala 200 20 Masala 400 38 Masala 600 54 Masala 800 72 Chicken 100 10 Curry 100 10 Tomato 100 10 Vegetable Atta Noodles 100 13 Vegetable Atta Noodles 400 50 As we talk about maggi, it is very popular now a day in all over the world and its main customers are children and youngsters. As we know that MAGGI Noodles price is not very high, but there are so many competitors in the market so company can not set price different from their competitors. Currently company is having the tough competition with Sun feast Yuppie Noodles and Foodles. One advantage of the company is that noodle‟s packets are available in different size comparing it with the brand called Top Ramen. Shri Chimanbhai Patel Institute of Management and Research Page 25
  • 26. 6.3 PLACE Place refers to the location where the products are available and can be sold or purchased. Buyers can purchase products either from physical markets or from virtual markets. In a physical market, buyers and sellers can physically meet and interact with each other whereas in a virtual market buyers and sellers meet through internet. Thus with the ease and options through which you make your product or service available to your customers will have an effect on your sales volumes. Physical Distribution of Maggi noodles: To keep up with the growing trends in the Noodles sector, an intensive dealer- distributor network is desired. Maggi has a well established distribution network. Maggi Distribution Network - Maggi Factory Factory Warehouse Agent Distributors Wholesalers Direct Retailers End Consumers Shri Chimanbhai Patel Institute of Management and Research Page 26
  • 27. Thus from the chart it can be said that the distribution network is well spread almost everywhere in India, as it is easily available in all local stores, retail store etc. But in order to strengthen the distribution, NIL should expand its market to Rural India with products targeted to the market. Thus this can be one of the way by which they can increase its volume of sales. So major focus should be done to this market as well. Shri Chimanbhai Patel Institute of Management and Research Page 27
  • 28. 6.4 PROMOTION Promotion refers to the various strategies and ideas implemented by the marketers to make the end - users aware of their brand. Promotion includes various techniques employed to promote and make a brand popular amongst the masses. Promotion can be through any of the following ways: Advertising Print media, Television, radio are effective ways to entice customers and make them aware of the brand‟s existence. Billboards, hoardings, banners installed intelligently at strategic locations like heavy traffic areas, crossings, railway stations, bus stands attract the passing individuals towards a particular brand. Taglines also increase the recall value of the brand amongst the customers. Word of mouth One satisfied customer brings ten more customers along with him whereas one dissatisfied customer takes away ten more customers. That‟s the importance of word of mouth. Positive word of mouth goes a long way in promoting brands amongst the customers. Initial Strategies of Maggi Maggi has faced lot of hurdles in its journey in India. The basic problem the brand faced is the Indian Psyche. Initially Nestle tried to position the Noodles in the platform of convenience targeting the working women. However, the sales of Maggi was not picking up despite of heavy Media Advertising. To overcome this NIL conducted a research. NIL's promotions positioned the noodles as a 'convenience product', for mothers & as a 'fun' product for children. The noodles' tagline, 'Fast to Cook Good to Eat' was also in keeping with this positioning. Shri Chimanbhai Patel Institute of Management and Research Page 28
  • 29.  Print Ads Maggi does not focus heavily on print media during its launch since its initial target audience was mothers and kids. But later on some advertisements in the print media were used to highlight the convenience factor of Maggi.  Events and Experiences Hold the Online Maggie Recipe Challenge, wherein innovative recipes with Maggi Noodles as a base are invited. Winning entries are compiled into an e- cookbook which is published online Shri Chimanbhai Patel Institute of Management and Research Page 29
  • 30.  Sales promotion The company also adopted sales promotion activity in order to achieve following mentioned objectives.  To introduce new products  To attract new customers and retain the existing ones  To maintain sales of seasonal products  To meet the challenge of competition Various Tools used  Exchange schemes  Price-off offer  Coupons  Scratch and win offer  Money Back offer Several initiatives were also taken by Maggi Noodles or Retailers sales promotion. This can be as follows  Maggi was distributed free in schools and offices to promote trial  Return gifts on empty packs  Maggi fun book and stickers with funky animal facts. Shri Chimanbhai Patel Institute of Management and Research Page 30
  • 31.  Public relation  The Maggi Club - the children under 14 were invited by press advertisements and distribution of leaflets to become a member of maggi club by sending logos cut from 5 empty maggi wrappers. Maggi projected it as “maggi clubbers are fun lovers” and intended to use it as reference group.  Benefits offered to maggi-clubbers are various games like Snap safari game, Cap and mask sets, travel India game, Disney today comic. To obtain each gift the member has to send 5 wrappers as purchase proof.  Some special privileges were given to regular members time to time.  The company also Organized Maggi school quizzes and sketching. RESULTS OF PR ACTIVITY:  Getting closer to regular customer.  Boosted the sales.  Making valuable direct marketing database.  Recently, again, they have started Maggi fan club. This time it is operating online and they are providing user name and password. Shri Chimanbhai Patel Institute of Management and Research Page 31
  • 32.  Displays Shri Chimanbhai Patel Institute of Management and Research Page 32
  • 33. 6.5 The Portfolio Matrix applied in MAGGI Noodles Products: The Boston consulting group developed the business portfolio matrix-shows the linkage between the growth rate of the firm and relative competitive position of the firm, identified by the market share. The Boston Consulting Group’s Porfolio Matrix High STARS QUESTION MARKS Market (MAGGI Veg Atta (MAGGI Dal Atta Noodles) Growth Noodles) Rate CASH COWS DOGS (MAGGI Masala Flavour) (MAGGI Tomato ,curry flavour) Low Low High Relative Market Share STARS: Stars is the portion of the market where the market position and growth both are very high thus it is very good position of the company addressed by the product- MAGGI Veg Atta Noodles. QUESTION MARKS: Business in these areas states the weak market share with high growth rate. Here it requires the high cash requirement to come into the stars areas. Thus we can take the product is MAGGI Dal Atta Noodles. Shri Chimanbhai Patel Institute of Management and Research Page 33
  • 34. CASH COWS: Cash cows are with the strong market position and low growth rate. Such markets are usually in a position to make their product favourite with the low price in the market. Here the example is MAGGI Masala Flavours which is very popular in today‟s market. DOGS: Here the marketing position and market growth rate both are very low and it is not profitable for the company. Thus company must have to stop the production of the products coming under this area. Shri Chimanbhai Patel Institute of Management and Research Page 34
  • 35. 7. CONCLUSION Maggi though has been able to differentiate itself from other Noodles, Maggi Being taken as generic to Noodles is hampering other extended product category. Competitors have high grounds to capture the market differentiating then from being Maggi. It makes others possible product category vulnerable if lunched under Maggi. So to avoid proliferation of brand and introduce new products to capture opportunities in other snacks and ready to eat product category NIL has to introduce new branding strategy. By doing so, NIL could avoid the draw backs associated with the Maggi brand. It could position new brand in competition with other competitor‟s brand where there is no fit of product with the Maggi brand. Shri Chimanbhai Patel Institute of Management and Research Page 35
  • 36. 8. BIBLIOGRAPHY  http://www.nestle.in/brands/pdca/Pages/MAGGICUPPAMANIA.aspx  http://virtualaccuracy.com/2007/10/definition-of-marketing-mix-product-price-place- promotion/  http://www.managementstudyguide.com/marketing-mix.htm  http://www.maggi.in/maggi_multigrainz_noodles.aspx  http://www.maggi.in/two_minutes_maggi_noodles.aspx  http://www.maggi.in/vegetables_atta_noodles.aspx  http://www.maggi.in/cuppamania.aspx  www.maggi.in/maggi_multigrainz_noodles.aspx  www.slideshare.net/parves190/maggi-noodles-8279990  http://www.scribd.com/doc/10552265/Nestle  http://www.maggi.in/range.aspx  http://www.nestleprofessional.com/united-states/en/BrandsAndProducts/Pages/default.aspx  http://www.maggi.in/maggi_multigrainz_noodles.aspx  http://www.maggi.in/two_minutes_maggi_noodles.aspx Shri Chimanbhai Patel Institute of Management and Research Page 36