Beruflich Dokumente
Kultur Dokumente
On
COMPARISON OF
MARKETING MIX
Of
MAGGI TOMATO KETCHUP
and
NESTLE KISSAN KETCHUP
1
ACKNOWLEDEMENT
I would like to convey my heartiest thanks to all the people for giving their
valuable time to let me understand their “behaviour” and thus lead to
completion of this project.
I would like to extend my gratitude to all the faculty for making me familiar
deeply with tasks of their respective field and giving personal attention to
learn the tasks.
First of all I’m indebited to Dr. Rosy Walia Joshi for her support and
constant guidance.
Last but not the least, the credit for making me able to learn goes to my
“family”. My parents help and support me
2
DECLARATION
3
SELF DECLARATION
DATE ARCHAN
4
CONTENTS
Summary
i. Introduction
v. Research Work
vi. Conclusions
vii. Suggestions
viii. Bibliography
5
SUMMARY
6
A survey was conducted on 50 people living in and around the city of
CHANDIGARH and SHIMLA to elicit their responses, on which the
results and findings of this study are based.
INTRODUCTION
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Increase in the number of competition between brands of ketchups,
makes the competition more tougher and difficult, not only for the
distributors but for the consumers also. Its very difficult for the
place, promotion) ,it become easy for the buyers to choose a best
EXECUTIVE SUMMARY
8
In 1991 we opened our country to foreign brands. As per this liberalization
policy many a foreign players ventured into our country finding it a lucrative
large mass market. India’s market potential lures foreign companies. Many
international companies that ventured in after 1991 are tallying their profits
and losses and wondering what the future holds for this market of 950
million people.
But India is a diverse country where different states have different
consumption patterns and customs. Thus competition has become the key
word in today’s scenario.
Till 1970’s and 80’s Maggie and Kissan were the major ketchup
brands but after liberalization Heinz entered Indian market which offered
tough competition. These major giants are also facing competition from
many local players like Tops, Cremica and other local brands.
Through this project we have studied 4 P’s of marketing mix which includes
PRODUCT, PRICE, PLACE and PROMOTION for Maggi Tomato
Ketchup.
Product highlights various attributes of the product. Price helps us in
analyzing whether it is competitively priced or not. Promotions showcases
which mode of promotion is most effective and how do consumers respond
to various celebrity endorsements. Place focuses on efficiency of distribution
network of Maggi Tomato Ketchup.
Towards the end I have suggested some recommendations as a group on how
can I improve the marketing mix of the product.
HISTORY OF NESTLE
9
Nestlé, which world knows as cautious and conservatory company is a Swiss
originated 140 years old Multinational. The man at the helm is Swiss
national Carlo Donati, an all inspiration and image of the company. His
philosophy is ‘bottom line dictating top line’ based on delegation and
decentralization.
10
(14.4 %), chocolate and confectionary (13.8 %). Nestle India plans to expand
business into similar and diversified product categories.
NESTLE KISSAN
11
NESTLE BRAND VALUE - $9.11 bn
RANK – 77TH PALCE
Kissan acts as a catalyst , easing stressful moments at the dining table . with
kissan , good food is loved not shoved !
Kissan wants to be the brand which will help dissolve tension between
mother and the family during informal good food moments.
Key facts :- kissan is in its 62nd year of its existence in India.
Category leaders in Jams with an all India Share of 65.
12
HISTORY OF MAGGI
Over time the scope of MAGGI has been extended from a predominantly
dehydrated cooking aid brand towards a general savory food brand including
many types of ready meals and also frozen food. This is in line with the fact
that people all over the world are cooking less and less from scratch.
In 1863 Julius Maggi developed a formula for bring added taste to meals,
which later became lead to the beginning of Maggi and convenience food
products.
13
MAGGI, known worldwide for innovation and quality worldwide,
understands that consumers are usually under great pressure in terms of time,
budget, cooking skills etc and therefore tries to establish a bond through
giving ideas and advice that make providing food easier.
This results in the food provider being appreciated by family and friends.
Maggi as a brand is globally known in the product category of bouillon or
soup cubes. Nestle decided to introduce Maggi brand in India in the same
product category. This soup was initially test marketed in 1974 in Kerala.
The response was not encouraging. Having then realized that the dietary
habits of Keralites are not conductive to the idea of drinking soup, test
marketing of the brand extended to Goa with the idea that Goan food habits
have some similarity with western habits.
15
FIGHT BETWEEN MAGGI AND KISSAN
KETCHUPS
16
Ketchup Heinz is still waiting and watching. It was expected that they will
launch Tomato Ketchup in Indian market soon.
It did not come in with one, but with a range of sauces in order to increase
market share and expand the market by offering more usage occasions, bring
consumers with different needs into the Maggi Sauces fold and weaning
away users of different brands to Maggi. From a market share of 14% in
1985, Maggi Sauces now enjoys a share of about 50% of the market.
17
MAGGI TOMATO KETCHUP
Market leader Kissan was selling its ketchup in 500 gm. Nestle
decided upon 400 gm bottle to give the consumer a ‘price- point’ advantage.
The main launched its product all over India. The main focusing aspect of
their advertisement was ‘what ketchup does to your food- tasty and more
palatable. It was a very clever move, which paved way for subsequent
variants such as
1. Tomato Chilli
2.Masala chilli
3. Chilli Garlic
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PRODUCT LINE
• Tomato Ketchup
• Hot & Sweet
• Tomato Ketchup (With onion & garlic)
• Teekha Masala
• Tomato Chatpat
• Tomato Pudina
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OBJECTIVE
In this project, the main focus was to analyze Tomato Ketchup taking into
consideration the 4 P’s of the marketing mix.
• Lastly my study will also focus on the various promotional aspect of the
brand in lieu of ketchup and also promotional mix of the product line.
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SCOPE OF THE STUDY
21
MARKETING MIX
22
4 P’s of MARKETING MIX
Marketing decision variables are those variables under the firm's control that
can affect the level of demand for the firm's products. They are distinguished
from environmental and competitive action variables that are not totally and
directly under the firm's control. It is a great way to help us focus on the
elements of a good marketing plan that we can't control but must be aware of
and anticipate such as:
- new competitors,
- new legislation,
- change in consumer confidence,
- change in consumer tastes; and
Price variables
• Allowances and deals
• Distribution and retailer mark-ups
• Discount structure
Product variables
• Quality
• Models and sizes
• Packaging
• Brands
• Service
23
Promotion variables
• Advertising
• Sales promotion
• Personal selling
• Publicity
Place variables
• Channels of distribution
• Outlet location
• Sales territories
• Warehousing system
24
4P’S OF MAGGI KETCHUP
PRODUCT
• Available in different variants: Maggi Ketchup Maggi Hot & Sweet Sauce,
Maggi Masala Chilli Sauce, Maggi Chilli Garlic Sauce, Maggi Tamarind
Sauce, Maggi Tomato Sauce (Without onion & garlic), Maggi Tomato
Ketchup (With onion & garlic), tomato chatpat, Teekha masala, Tomato
pudina.
PROMOTION
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• They also use strategy of free product samples to promote it.
• The utter confusion regarding the long-term strategy for Kissan brand was
visible through the experiments that were conducted on this brand by Hll.
• But with a brand which had a tremendous equity during the late nineties
and early 2000, HUL had weird plans.
PLACE
PRICE
26
4 P’S OF KISSAN KETCHUP
PRODUCT
PROMOTION
• But with a brand which had a tremendous equity during the late nineties
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and early 2000, HUL had weird plans. One of the major casualties of MS
Banga's Power brand strategy was Kissan.
During the early 2000, the brand Kissan was rebranded as Kissan
Annapurna. Kissan Annapurna was marketing not jams and squashes by
Atta, salt and other staple foods. Later Annapurna and Kissan was splited
into two separate brands , one concentrating on staple foods and other on
processed foods. This migration strategy proved to be very costly for both
Kissan and Annapurna brand.
Kissan was synonymous with Jams and Squashes during its initial years.
Kissan Ketchup was a market leader in ketchup segment but these
experiments and myopic strategies pushed the brand behind the focused and
aggressive Maggi.
• So all through the period 2001-2005, Kissan was in a sticky wicket. But
now according to reports, the brand mandarins of HUL is now clear about
Kissan as a brand for processed food like Jams , ketchups and like.
That change is visible in the recent campaign of Kissan which takes a unique
view of Ketchup. Taking the tagline " Aao banaye pakode behtar" translated
to " Making Pakode taste better". In these series of ads, the brand plays a
second fiddle to the main snack. The brand takes the positioning of a "Great
Accompaniment "
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PLACE
PRICE
• Its Kissan Ketchup and Kissan Sauce (no onion no garlic) are priced at Rs
91 (1 kg bottle), Rs 49 (500 gm bottle) and Rs 60 (600 gm squeezy pack),
while Kissan Tomchi is priced at Rs 53 (500 gm).
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PRODUCT LEVELS: CUSTOMER VALUE HIERARCHY
The “Basic product benefit” which our product provides to our target market
is a good taste with proper nutrition levels and good health, as one of its
punch line says “Taste Bhi Health Bhi”.
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PRODUCT DIFFERENTIATION
1. Form
2. Features
3. Performance quality
4. Convenience
5. Durability
6. Reliability
7. Style
FORM :- According to our product, the form shape, size, physical structure
of Maggi is very attractive as it is easy to carry, comes in various packs and
sizes according to customers convenience. For example “Maggi Pichkoo
ketchup” packs which is a smaller quantity consumption variant.
It is an Indian customer’s psyche that “whatever looks good and feels good
would be of good quality” so Maggi packs had been designed keeping in
mind the same concept, its promotional schemes, color of the packages and
the pictures depicted on the pack appeals to the customers.
Maggi leveraged the brand equity very effectively. The product quality was
good and the communication was excellent. The brand was positioned as a
"Different" sauce with the baseline "It’s different".
32
Brand Image: Young - Teenager, Ever changing, humorous, unpredictable
and “whacky”.Customers were intrigued as to what is different about the
brand and was curious to try the sauce. The ads featuring Javed and Pankaj
kapoor was superb and funny. It was created by JWT. The new campaigns
are handled by Publicis and the baseline has been changed to "Enjoy the
Difference".
In this case even though the new baseline "Enjoy the Difference" was not
very different from the old one.We strongly feel that the brand managers
should take the ownership of the brand and the way it is communicated. If it
is left to agency alone, every time the agency changes, the communication
changes.
The Consumer Magazine has published its in-house laboratory test findings
on 15 brands of tomato sauce and ketchup from across the country and 2
unbranded samples from Ahmedabad.
Overall, Maggi Ketchup (79) scored the highest among the national brands
followed by Kissan Sauce (78) and Heinz Ketchup (78).
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INNOVATION PROCESS ADOPTED BY MAGGI TO
COMPETE THE “PRICE WAR”…..
OUTCOME CONSTRAINTS
Ingredients Cost
Formulations Manufacturer conservatism
Processes Quality
Additives Safety
Packaging Consumer expectations
Marketing Consumer conservatism
Distribution Sociological, Political
Patent Legal
Recruiting Strategy
Training Quality
R&D Know-how
Technology watch SOURCES Profit
Technology transfer Market environment
Information Know-how Fashions, trends
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… Knowledge …
Creativity
Competition
Academic
Inventors
Suppliers
RESEARCH METHODOLOGY
35
The present study constitutes the comparison of the 4 Ps of the Maggi of
Nestle India Ltd. and Kissan of Hindustan Unilever Ltd.
This will be done from the secondary data collected from the websites and
the food consultants.
The steps involved in the research are:
1. SURVEY METHODS
2. QUESTIONNAIRE DESIGN
3. SAMPLING DESIGN
The sampling frame is defined in terms of who the respondents are can
36
answer the questions that need to be addressed. First we defined our target
population as the people who are involved in the purchase of house hold
items. Then we used random sampling in conducting the survey.
Our sample mainly had females from different age groups.
5. SAMPLE SIZE
The data collected via survey was entered into the excel sheet. The results
were tabulated and analyzed. According to the analysis relevant inferences
has been made related to each question.
DATA ANALYSIS
SOURCE OF INFORMATION ABOUT MAGGI TOMATO KETCHUP
AND SOURCE NO. OF RESPONDENTS
37
1) FAMILY MONTHLY INCOME :
BELOW 25000 14
25000-50000 24
50000-1 LAC 6
1 LAC and ABOVE 6
family monthly income
12%
12% 28%
48%
15 - 25 40
25 - 35 5
35 - 45 3
38
45 and above 2
age of the respondents
40 80%
30
20
10
10% 6% 4%
0
15-25 25-35 35-45 45 and
above
INFERENCE :
Age group between 15 – 25 , respond that how much they prefer to consume
ketchups of various brands from the market.
3) FAMILY TYPE :
Joint 14
39
Family
Nuclear 36
Family
FAMILY TYPE
joint
family
28%
nuclear
family
72%
INFERENCE :
Survey reveals , as shown in the above figure that there is major number of
nuclear families as comparison to joint families.
Yes 49
No 1
40
no.of respondents consume tomato ketchup
NO
YES
2% 98%
0 10 20 30 40 50
INFERENCE :
Above bar graph shows that the major number of respondents consume magi
tomato ketchup.
MAGGI 21
KISSAN 20
SMITH AND JONES 3
41
TOPS 1
CREMICA -
OTHERS 4
BRAND PREFRENCES
OTHERS
8%
TOPS
SMITH AND 2%
JONES
6%
MAGGI
43%
KISSAN
41%
INFERENCE :
Survey reveals as per shown that maggi and kissan are the two major brands
which consumer prefer to buy from the market, in comparison with other
brand
6) RESPONDENTS BRAND PREFRENCES :
YES 47
NO 3
42
60%
YES
NO
94%
INFERENCE :
As the above survey it was found that the major source of consumers
consumes tomato ketchups, hence out of its found that respondents mostly
prefer to use maggi brand only.
NEWPAPER ADS. 3
43
RADIO -
T.V 40
WORD OF MOUTH -
POINT OF SALE 3
OTHERS 4
others
point of sale
word of mouth
t.v
point of sale
newspaper ads.
0 10 20 30 40 50
This graph reveals that t.v ads. Are the major source of information
regarding maggi tomato ketchup and so we can also infer that they have been
successful in their promotion strategies involving electronic media.
8) NUMBERS OF RESPONDENTS KNOWING ANY ADS. OF MAGGI
TOMATO KETCHUP :
YES 42
NO 8
44
no. of respondents knowing maggi
no ketchup ads.
16%
yes
84%
INFERENCES :
This graph facilitates us in realizing that majority of the people are aware of
the brand magi as they remember tv ads so it can be inferred that maggi’s
promotional team has far been successful in positioning its tomato ketchup
in mind of the people.
9) NUMBERS OF RESPONDENTS INFLUENCES BY CELEBRITY
ENDORSEMENT TO PURCHASE MAGGI TOMATO KETCHUP :
YES 12
NO 38
45
RESPONDENTS INFULENCE BY
CLEBRITY ENDORSEMENT
YES
24%
NO
76%
INFERENCE :
This graph infers that celebrity endorsements does not influence the buying
decision of majority consumers. It also infers that reference group does not
make any impact on consumer mind,when we talk about magi tomato
ketchup.
10) NUMBER OF RESPONDENTS TRIED NEW VARIANTS OF MAGGI
TOMATO KETCHUP INFLUENING BY ADS.
YES 30
NO 20
46
RESPONDENTS TRIED NEW VARIANTS OF MAGGI TOMATO KETCHUP BY
VEIWING ADS.
NO
40%
YES
60%
INFERENCE :
It conclude that major source of respondents prefer to use their old product
rather than get influence with new ads. of variants magi tomato ketchups as
above pie chart reveals that 60% of consumers happy with their products and
not influenced by ads.
High 3
Medium 27
Low 20
47
LEVEL OF MAGGI DISCOUNT OFFERS
30
27
25
20 20
15
10
5 3
0
High Medium Low
INFERENCE :
This graph reveals that magi tomato ketchup is position in the mind of the
consumer and also of its discount offer to medium extent.
DISCOUNT OFFER 10
BUY ONE GET ONE 22
COMBO PACK 15
OTHERS 3
48
discount
others
combo offer
6%
pack 20%
30%
buy one
get one
44%
INFERENCE :
This graph infers that “ buy one get one free” offers of magi tomato ketchup
is the first choice among the consumers. This shows that consumers are price
sensitive too and they prefer buying when there are offers running around.
13) MAGGI TOMATO KETCHUP AVAILABLE TO RESPONDENTS :
YES 49
NO 1
49
NO. OF RESPONDENTS FEELS THAT MAGGI TOMATO
KETCHUP EASILY AVAILABLE
NO
2%
YES
98%
INFERENCE :
Mostly said that magi ketchup easily available in market stores but few of
them said that because of unavailability of maggi ketchup in there near store
never consume magi ketchups.
NEAR BY STORE 36
RETAIL STORE 10
WHOLE SELLER 4
50
CONSUMERS PURCHASE MAGGI TOMATO KETCHUP
FROM
4
whole seller
10
Retail store
36
Near by store
0 10 20 30 40
INFERENCE :
PICHKOO PACK 5
51
200 gm 15
600 gm 17
1 kg 11
pichkoo
1kg pack
23% 10%
200 gm
600gm 31%
36%
INFERENCE :
This graph figure reveals that 600 gm sized bottle of maggi tomato ketchup
is largely demanded even in the presence of smaller sized bottles and even
the new pichkoo pack.
EVERY WEEK 6
EVERY FORTNIGHT 6
EVERY MONTH 23
OCCASIONALLY 15
52
frequency of purchasing maggi ketchup by respondents
25 46%
20
15 30%
10 12% 12%
0
every week every every month occasionally
fortnight
INFERENCE :
This graph depicts that the frequency of buying every month of maggi
tomato ketchup is maximum.
TOMATO KETCHUP 27
HOT AND SWEET 8
TOMATO KETCHUP (WITH 6
ONION AND GARLIC)
TEEKHA MASALA 1
TOMATO CHATPAT 6
53
TOMATO PUDINA 2
tomato ketchup
(with onion and
tomato ketch
garlic)
54%
12%
INFERENCE :
This graph shows that the original flavour of maggi tomato ketchup is still
the leader in terms of popularity and hot and sweet is slowly catching up
with it. Its new variants and flavour have also been noticed and have started
making in roads for themselves .
18) IMPORTANCE OF THE ATTRIBUTES :
Attributes Very Moderate Least
important important important
Taste 36 11 3
Thickness 16 26 8
Color 16 15 19
54
40 taste
35
30 thickness
25
thickness color
20
color color
15 taste
thickness
10
taste
5
0
very moderate least
INFERENCE :important important important
This graph depicts our analysis of the importance of the various product
attribute like taste , color and thickness in the eye of people . we can very
well observe in the graph that taste, undoubtedly , is the most important
attribute that people prefer more over any other while selecting a brand.
Moderate importance is given color attribute and thickness also derives its
importance somewhere between moderate to very.
The data collected from the survey clearly shows that taste is the most
important factor while purchasing the tomato ketchup.
The above analysis tells that thickness of tomato ketchup is the second most
important attribute for the respondents after taste. Maggi is the leader in the
ketchup industry and known for its better taste and varieties. Maggi should
55
work towards the thickness of its tomato ketchup.
LIMITATIONS
1. SAMPLING ERROR:
The sample of our survey is confined to the respondents from the middle
class and the upper middle class. The sample size of 50 is not the true
representative of our sampling frame and result in skewed responses.
56
The locations under taken for the survey is also a constrain because the result
of the survey is limited to some regions and cannot be used for further
analysis and implementation.
2. RESPONSE ERRORS:
4. RECORDING ERROR:
This type of error arise dues to errors in hearing, interpreting, and recording
the answers given by the respondents. For example, a respondent indicates a
moderate response for the attributes of the tomato ketchup, but the
interviewer misinterprets that to a positive response.
57
5. DATA ANALYSIS ERROR:
These errors occur while raw data from questionnaire are transformed into
research findings. For example, if the outliers are not filtered from the data
during the statistical procedure, result in incorrect interpretation and
findings.
RECOMMENDATIONS
PRODUCT
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thickness is one important criteria which affects buying behaviour. Hence
company should work on the thickness of the ketchup.
• Company should work on taste also. According to the data collected people
prefer the taste of Kissan.
PLACE
• Most of the people buy Maggi Ketchup from local kirana stores. But
organized sector is booming and according to my survey, 38% people buy
Maggi Ketchup from Retail Stores. Hence they should increase the visibility
of the product in Retail Stores and hence effective distribution network.
PROMOTION
• They should promote there new product ‘PICHKOO’ as people are less
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aware of this new size. It could increase the market share tremendously as it
is very convenient to carry.
PRICE
BIBLIOGRAPHY
1) www.managementparadise.com/.../105772-marketing-project-4ps-maggi-
tomato-ketchup.html
2) www.nestle.com/AllAbout/AllAboutNestle.htm
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3) www.wikipedia.com
4) www.google.com
5) NCERT BOOK OF BUSINESS STUDIES OF 12TH
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SAMPLE COPY OF THE QUESTONNAIRE
1. Name:
………………………………………………………………………………
…………..
2. Occupation:
………………………………………………………………………………
….
3. Family Monthly Income:
Below 25000 25000-50000 50000-1 Lac 1 Lac and above
4. Location:
………………………………………………………………………………
……….
5. Age:
15-25 25-35 35-45 45 and above
6. Family type:
Joint Nuclear
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7. Do you consume tomato ketchup?
Yes No
10. If no , it is because :
Lack of awareness
Lack of availability
You find it expensive
You don’t like the product
Others
……………………………………………………………………………
14. Have you tried new variants of Maggi Tomato Ketchup after viewing the
advertisements?
Yes No
15. What is the level of discounts /offers available with Maggi Tomato
Ketchup?
High Medium Low
16. Which of the offers available influence you the most to purchase Maggi
Tomato Ketchup?
Discounts offer
Buy one get one
64
Combo packs
Other
17. Is Maggi Tomato Ketchup easily available to you?
Yes No
Taste
Color
Thickness
66
67