A project report on consumer buying

behaviour towards

Submitted to Submitted By

Prof M.D.Kakade Md Javed Khan(25)

Neeshu Agarwal (27)

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 BHARTI VIDYAPEETH DEEMED UNIVERSITY, PUNE

INSTITUTE OF MANAGEMENT AND ENTREPRENUERSHIP DEVELOPMENT,

PAUD ROAD, ERANDWANE

PUNE-38

CERTIFICATE OF COMPLETION

This is to certify that Md Javed Khan and Neeshu Agarwal are a bonafide
student of MBA (BA) program of the university in this institute for the year
2010-2012. As a part of the , the student has completed the project report
titled, “A STUDY CONSUMER BUYING BEHAVIOUR TOWARDS NOODLES”
The project report is prepared by the student under the guidance of Prof.
M.D.KAKADE

(Teacher Guide)

Date:

Place: Pune

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 DECLARATION

I, MD JAVED KHAN AND NEESHU AGARWAL undersigned

hereby declare that the project report entitled: “A STUDY
CONSUMER BUYING BEHAVIOUR TOWARDS NOODLES”.
Written and submitted by us is submitted to Prof.M.D.KAKADE is our
original work. The empirical findings in this report are based on the data
collected by myself. While preparing the report I have not copied from
any report.

MD JAVED KHAN (25)

NEESHU AGARWAL (27)

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 PREFACE
Marketing has to go beyond the various influences on buyers and develops an
understanding of how consumers actually make their buying decisions. We are
exposed to marketing in almost everything we do; we see marketing in the
advertisement that fills our newspapers. But marketing is not that simple as it
appears to be. The mission of present day marketing is not 'telling and selling', but,
satisfying customer 'needs' and 'Customer delight'. Customer is the fulcrum around
which all marketing activities revolve.

To start any business the success entirely depends on the marketing research
done about the particular and the consumer attitude towards the product.
Marketing research plays a vital role in a business to make it success. In this era
where time is very big factor for everyone. Every person wants to save his every
second to utilize it to achieve more and more goals, and with less time, people want
the better facilities and in short time.

When the traveling is the factor, people choose that how best, they can travel, what
facilities they can get and how much time and money they can save.

In the marketing point of view, the behavior of the consumers effects deeply on the
concerned organization. So that why, I am here to analyzing and study the consumer
behavior towards the Maggi noodles and Horlicks foodles.

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 INDEX
SERIAL NO NAME PAGE NO

1 Executive summery 6

2 7
Introduction

3 33
Strategic analysis of Maggi and
Horlicks foodles (Company Profile)

4 63
RESEARCH METHODOLOGY

5 65
Survey Results

6 SUGGESTIONS AND CONCLUSION 73

7 Bibliography 77

8 Annexure 78

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 EXECUTIVE SUMMERY

The report entitled “A study of consumer buying behaviour towards Maggi

and Foodles” deals with the study of Maggi brand and Horliks foodles that was
launched in India in the year 1983, by Nestle India Limited, and foodles in the year of
2009 which became synonymous with noodles. This research paper tries to find
consumer buying behaviour towards these products. This research paper also finds of
reach of foodles and Maggi .Describes the level of involvement and types of
consumer problem solving process. This research will also explain how situational
influences may affect the consumer buying decision process. Understand the
psychological influences that may affect the consumer buying decision process.

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 INTRODUCTION
CONSUMER BUYING BEHAVIOUR :

All marketing starts with the consumer. So consumer is a very important person to a
marketer. Consumer decides what to purchase, for whom to purchase, why to
purchase, from where to purchase, and how much to purchase. In order to become a
successful marketer, he must know the liking or disliking of the customers. He must
also know the time and the quantity of goods and services, a consumer may
purchase, so that he may store the goods or provide the services according to the
likings of the consumers. Gone are the days when the concept of market was let the
buyer’s beware or when the market was mainly the seller’s market. Now the whole
concept of consumer’s sovereignty prevails. The manufacturers produce and the
sellers sell whatever the consumer likes. In this sense, “consumer is the supreme in
the market”.

As consumers, we play a very vital role in the health of the economy local, national or
international. The decision we make concerning our consumption behaviour affect
the demand for the basic raw materials, for the transportation, for the banking, for
the production; they effect the employment of workers and deployment of resources
and success of some industries and failures of others. Thus marketer must
understand this. The consumer behaviour suggest how individual, groups and
organization select, buy, use and dispose of goods, services, ideas or experience to
satisfy their needs and wants. It also clues for improving or introducing products or
services, setting price, devising channels etc. Since liberalization 100% FDI is allowed
in India. This has attracted foreign companies to penetrate the Indian market. The
marketers always look for emergent trends that suggest new.

As a consumer we are all unique and this uniqueness is reflected in the consumption
pattern and process purchase. The study of consumer behaviour provides us with
reasons why consumers differ from one another in buying using products and
services. We receive stimuli from the environment and the specifics of the marketing
strategies of different products and services, and responds to these stimuli in terms

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of either buying or not buying product. In between the stage of receiving the stimuli
and responding to it, the consumer goes through the process of making his decision.

CONSUMER BEHAVIOUR

Consumer behaviour is the study of how people buy, what they buy, when they buy
and why they buy. It is a subcategory of marketing that blends elements from
psychology, sociology, socio psychology, anthropology and economics. It attempts to
understand the buyer decision making process, both individually and in groups. It
studies characteristics of individual consumers such as demographics,
psychographics, and behavioural variables in an attempt to understand people's
wants. It also tries to assess influences on the consumer from groups such as family,
friends, reference groups, and society in general.

Consumption is the “process of production, acquisition, utilization and destruction of

goods, services, experiences or places”

Understanding Demographics -

1) Youth – 60% of India’s teens stay in rural area.

2) Women – Only 23 % house wives in urban areas have jobs outside their homes

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STAGES OF CONSUMER BUYNG PROCESS

Six Stages to the Consumer Buying Decision Process (For complex decisions). Actual
purchasing is only one stage of the process. Not all decision processes lead to a
purchase. All consumer decisions do not always include all 6 stages, determined by
the degree of complexity...discussed next.

The 6 stages are:

1. Problem Recognition: The buying process starts with need or problem

recognition—the buyer recognizes a problem or need. The buyer senses a difference

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between his or her actual state and some desired state. The need can be triggered by
internal stimuli when one of the person's normal needs—hunger, thirst, sex—rises to
a level high enough to become a drive. A need can also be triggered by external
stimuli.

Hunger--Food. Hunger stimulates your need to eat. Can be stimulated by the

marketer through product information--did not know you were deficient? I.E., see a
commercial for a new pair of shoes, stimulates your recognition that you need a new
pair of shoes

At this stage, the marketer should research consumers to find out what kinds of
needs or problems arise, what brought them about, and how they led the consumer
to this particular product.

2. Information search— an aroused consumer may or may not search for more
information. If the consumer's drive is strong and a satisfying product is near at
hand, the consumer is likely to buy it then. If not, the consumer may store the need
in memory or undertake an information search related to the need. At one level, the
consumer may simply enter heightened attention.

The consumer can obtain information from any of several sources. These include
personal sources (family, friends, neighbors, acquaintances), commercial sources
(advertising, salespeople, dealers, packaging, displays, Web sites), public sources
(mass media, consumer-rating organizations), and experiential sources (handling,
examining, using the product). The relative influence of these information sources
varies with the product and the buyer. Generally, the consumer receives the most
information about a product from commercial sources—those controlled by the
marketer. The most effective sources, however, tend to be personal. Commercial
sources normally inform the buyer, but personal sources legitimize or evaluate
products for the buyer.

People often ask others—friends, relatives, acquaintances, professionals—for

recommendations concerning a product or service. Thus, companies have a strong
interest in building such word-of-mouth sources. These sources have two chief
advantages. First, they are convincing: Word of mouth is the only promotion method

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that is of consumers, by consumers, and for consumers. Having loyal, satisfied
customers that brag about doing business with you is the dream of every business
owner. Not only are satisfied customers repeating buyers, but they are also walking,
talking billboards for your business. Second, the costs are low. Keeping in touch with
satisfied customers and turning them into word-of-mouth advocates costs the
business relatively little.

A successful information search leaves a buyer with possible alternatives, the evoked
set. Hungry, want to go out and eat, evoked set is

Chinese food

Indian food

Burger king

3. Evaluation of Alternatives--need to establish criteria for evaluation, features

the buyer wants or does not want. Rank/weight alternatives or resume search. May
decide that you want to eat something spicy, Indian gets highest rank etc. If not
satisfied with your choices then return to the search phase. Can you think of another
restaurant? Look in the yellow pages etc. Information from different sources may be
treated differently. Marketers try to influence by "framing" alternatives.

4. Purchase decision—In the evaluation stage, the consumer ranks brands and
forms purchase intentions. Generally, the consumer's purchase decision will be to
buy the most preferred brand, but two factors can come between the purchase
intention and the purchase decision. The first factor is the attitudes of others

The second factor is unexpected situational factors. The consumer may form a
purchase intention based on factors such as expected income, expected price, and
expected product benefits. However, unexpected events may change the purchase
intention.

5. Purchase--May differ from decision, time lapse between 4 & product availability

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6. Post-Purchase Evaluation--outcome: The marketer's job does not end when
the product is bought. After purchasing the product, the consumer will be satisfied or
dissatisfied and will engage in post purchase behavior of interest to the marketer.
What determines whether the buyer is satisfied or dissatisfied with a purchase? The
answer lies in the relationship between the consumer's expectations and the
product's perceived performance. If the product falls short of expectations, the
consumer is disappointed; if it meets expectations, the consumer is satisfied; if it
exceeds expectations, the consumer is delighted. The larger the gap between
expectations and performance, the greater the consumer's dissatisfaction. This
suggests that sellers should make product claims that faithfully represent the
product's performance so that buyers are satisfied. Some sellers might even
understate performance levels to boost consumer satisfaction with the product.

Almost all major purchases result in cognitive dissonance, or discomfort caused by

post purchase conflict. After the purchase, consumers are satisfied with the benefits
of the chosen brand and are glad to avoid the drawbacks of the brands not bought.
However, every purchase involves compromise. Consumers feel uneasy about
acquiring the drawbacks of the chosen brand and about losing the benefits of the
brands not purchased. Thus, consumers feel at least some postpurchase dissonance
for every purchase.

Why is it so important to satisfy the customer? Such satisfaction is important

because a company's sales come from two basic groups—new customers and
retained customers. It usually costs more to attract new customers than to retain
current ones, and the best way to retain current customers is to keep them satisfied.
Customer satisfaction is a key to making lasting connections with consumers—to
keeping and growing consumers and reaping their customer lifetime value. Satisfied
customers buy a product again, talk favorably to others about the product, pay less
attention to competing brands and advertising, and buy other products from the
company. Many marketers go beyond merely meeting the expectations of
customers—they aim to delight the customer. A delighted customer is even more
likely to purchase again and to talk favorably about the product and company.

A dissatisfied consumer responds differently. Whereas, on average, a satisfied

customer tells 3 people about a good product experience, a dissatisfied customer

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gripes to 11 people. In fact, one study showed that 13 percent of the people who had a
problem with an organization complained about the company to more than 20
people. Clearly, bad word of mouth travels farther and faster than good word of
mouth and can quickly damage consumer attitudes about a company and its
products.

Therefore, a company would be wise to measure customer satisfaction regularly. It

cannot simply rely on dissatisfied customers to volunteer their complaints when they
are dissatisfied. Some 96 percent of unhappy customers never tell the company
about their problem. Companies should set up systems that encourage customers to
complain. In this way, the company can learn how well it is doing and how it can
improve

TYPES OF COMSUMER BUYING BEHAVIOUR :

Types of consumer buying behaviour are determined by:

Level of Involvement in purchase decision. Importance and intensity of interest in a

product in a particular situation. Buyer’s level of involvement determines why he/she
is motivated to seek information about a certain products and brands but virtually
ignores others. High involvement purchases--Honda Motorbike, high priced goods,
products visible to others, and the higher the risk the higher the involvement. Types
of risk:

Personal risk

Social risk

Economic risk

The four type of consumer buying behaviour are:

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Routine Response/Programmed Behaviour--Buying low involvement frequently
purchased low cost items; need very little search and decision effort; purchased
almost automatically. Examples include soft drinks, snack foods, milk etc.

COMPLEX BUYING BEHAVIOUR:

Consumers undertake complex buying behavior when they are highly involved in a
purchase and perceive significant differences among brands. Consumers may be
highly involved when the product is expensive, risky, purchased infrequently, and
highly self-expressive. Typically, the consumer has much to learn about the product
category. For example, a personal computer buyer may not know what attributes to
consider. Many product features carry no real meaning: a "Pentium Pro chip," "super
VGA resolution," or "megs of RAM."

This buyer will pass through a learning process, first developing beliefs about the
product, then attitudes, and then making a thoughtful purchase choice. Marketers of
high-involvement products must understand the information-gathering and
evaluation behavior of high-involvement consumers. They need to help buyers learn
about product-class attributes and their relative importance, and about what the
company's brand offers on the important attributes. Marketers need to differentiate
their brand's features, perhaps by describing the brand's benefits using print media
with long copy. They must motivate store salespeople and the buyer's acquaintances
to influence the final brand choice.

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DISSONANCE- REDUCING BUYING BEHAVIOUR:

Dissonance-reducing buying behavior occurs when consumers are highly involved

with an expensive, infrequent, or risky purchase, but see little difference among
brands. For example, consumers buying carpeting may face a high-involvement
decision because carpeting is expensive and self-expressive. Yet buyers may consider
most carpet brands in a given price range to be the same. In this case, because
perceived brand differences are not large, buyers may shop around to learn what is
available, but buy relatively quickly. They may respond primarily to a good price or to
purchase convenience.

After the purchase, consumers might experience post purchase dissonance (after-
sale discomfort) when they notice certain disadvantages of the purchased carpet
brand or hear favorable things about brands not purchased. To counter such
dissonance, the marketer's after-sale communications should provide evidence and
support to help consumers feel good about their brand choices.

HABITUAL BUYING BEHAVIOUR:

Habitual buying behavior occurs under conditions of low consumer involvement and
little significant brand difference. For example, take salt. Consumers have little
involvement in this product category—they simply go to the store and reach for a
brand. If they keep reaching for the same brand, it is out of habit rather than strong
brand loyalty. Consumers appear to have low involvement with most low-cost,
frequently purchased products.

In such cases, consumer behavior does not pass through the usual belief-attitude-
behavior sequence. Consumers do not search extensively for information about the
brands, evaluate brand characteristics, and make weighty decisions about which
brands to buy. Instead, they passively receive information as they watch television or
read magazines. Ad repetition creates brand familiarity rather than brand
conviction. Consumers do not form strong attitudes toward a brand; they select the
brand because it is familiar. Because they are not highly involved with the product,
consumers may not evaluate the choice even after purchase. Thus, the buying process

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involves brand beliefs formed by passive learning, followed by purchase behavior,
which may or may not be followed by evaluation.

Because buyers are not highly committed to any brands, marketers of low-
involvement products with few brand differences often use price and sales
promotions to stimulate product trial. In advertising for a low-involvement product,
ad copy should stress only a few key points. Visual symbols and imagery are
important because they can be remembered easily and associated with the brand. Ad
campaigns should include high repetition of short-duration messages. Television is
usually more effective than print media because it is a low-involvement medium
suitable for passive learning. Advertising planning should be based on classical
conditioning theory, in which buyers learn to identify a certain product by a symbol
repeatedly attached to it.

Marketers can try to convert low-involvement products into higher-involvement ones

by linking them to some involving issue. Procter & Gamble does this when it links
Crest toothpaste to avoiding cavities. Or the product can be linked to some involving
personal situation. Nestlé did this in its series of ads for Taster's Choice coffee, each
consisting of a new soap-opera-like episode featuring the evolving romantic
relationship between two neighbors. At best, these strategies can raise consumer
involvement from a low to a moderate level. However, they are not likely to propel
the consumer into highly involved buying behavior.

VARIETY SEEKING BUYING BEHAVIOUR:

Consumers undertake variety-seeking buying behavior in situations characterized by

low consumer involvement but significant perceived brand differences. In such cases,
consumers often do a lot of brand switching. For example, when buying cookies, a
consumer may hold some beliefs, choose a cookie brand without much evaluation,
then evaluate that brand during consumption. But the next time, the consumer might
pick another brand out of boredom or simply to try something different. Brand
switching occurs for the sake of variety rather than because of dissatisfaction.

In such product categories, the marketing strategy may differ for the market leader
and minor brands. The market leader will try to encourage habitual buying behavior
by dominating shelf space, keeping shelves fully stocked, and running frequent
reminder advertising. Challenger firms will encourage variety seeking by offering

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lower prices, special deals, coupons, free samples, and advertising that presents
reasons for trying something new.

Factors Affecting the Consumer Buying Decision Process

A consumer, making a purchase decision will be affected by the following four

factors:

1. Cultural and sub culture Factor

2. Social Factor

3. Personal Factor

4. Psychological

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1. Culture and Sub-culture

Culture refers to the set of values, ideas, and attitudes that are accepted by a
homogenous group of people and transmitted to the next generation. Culture also
determines what is acceptable with product advertising. Culture determines what
people wear, eat, reside and travel. Cultural values in the US are good health,
education, individualism and freedom. In American culture time scarcity is a growing
problem that is change in meals. Big impact on international marketing. Culture can
be divided into subcultures: Geographic regions

Human characteristics such as ethnic background.

Culture affects what people buy, how they buy and when they buy.

2. Social Factors

Consumer wants, learning, motives etc. are influenced by opinion leaders, person's
family, reference groups, social class and culture.

Roles and Family Influences--

Role...things you should do based on the expectations of you from your position
within a group. People have many roles. Husband, father, employer, employee.
Individuals role are continuing to change therefore marketers must continue to
update information. Family is the most basic group a person belongs to. Marketers
must understand: that many family decisions are made by the family unit consumer
behaviour starts in the family unit family roles and preferences are the model for
children's future family (can reject/alter/etc) family buying decisions are a mixture
of family interactions and individual decision making. Family acts an interpreter of
social and cultural values for the individual.

The Family life cycle: families go through stages; each stage creates different
consumer demands

Family members can strongly influence buyer behavior. The family is the most
important consumer buying organization in society, and it has been researched
extensively. Marketers are interested in the roles and influence of the husband, wife,
and children on the purchase of different products and services.

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Husband-wife involvement varies widely by product category and by stage in the
buying process. Buying roles change with evolving consumer lifestyles. In the United
States, the wife traditionally has been the main purchasing agent for the family,
especially in the areas of food, household products, and clothing. But with 70 percent
of women holding jobs outside the home and the willingness of husbands to do more
of the family's purchasing, all this is changing. For example, women now buy about
45 percent of all cars and men account for about 40 percent of food-shopping dollars.

Such changes suggest that marketers who've typically sold their products to only
women or only men are now courting the opposite sex. For example, with research
revealing that women now account for nearly half of all hardware store purchases,
home improvement retailers such as Home Depot and Builders Square have turned
what once were intimidating warehouses into female-friendly retail outlets. The new
Builders Square II outlets feature decorator design centers at the front of the store.
To attract more women, Builders Square runs ads targeting women in Home, House
Beautiful, Woman's Day, and Better Homes and Gardens. Home Depot even offers
bridal registries

Children may also have a strong influence on family buying decisions. Chevrolet
recognizes these influences in marketing its Chevy Venture minivan. For example, it
ran ads to woo these "back-seat consumers" in Sports Illustrated for Kids, which
attracts mostly 8- to 14-year-old boys. "We're kidding ourselves when we think kids
aren't aware of brands," says Venture's brand manager, adding that even she was
surprised at how often parents told her that kids played a tie-breaking role in
deciding which car to buy.

Groups

A person's behavior is influenced by many small groups. Groups that have a direct
influence and to which a person belongs are called membership groups. In contrast,
reference groups serve as direct (face-to-face) or indirect points of comparison or
reference in forming a person's attitudes or behavior. People often are influenced by
reference groups to which they do not belong. For example, an aspirational group is
one to which the individual wishes to belong, as when a teenage basketball player
hopes to play someday for the Utah Jazz. Marketers try to identify the reference
groups of their target markets. Reference groups expose a person to new behaviors

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and lifestyles, influence the person's attitudes and self-concept, and create pressures
to conform that may affect the person's product and brand choices.

The importance of group influence varies across products and brands. It tends to be
strongest when the product is visible to others whom the buyer respects.
Manufacturers of products and brands subjected to strong group influence must
figure out how to reach opinion leaders—people within a reference group who,
because of special skills, knowledge, personality, or other characteristics, exert
influence on others.

Reference Groups--

Individual identifies with the group to the extent that he takes on many of the
values, attitudes or behaviours of the group members.

Families, friends, sororities, civic and professional organizations. Any group that has
a positive or negative influence on a person’s attitude and behaviour.

Membership groups

(Belong to) Affinity marketing is focused on the desires of consumers that belong to
reference groups. Marketers get the groups to approve the product and communicate
that approval to its members. Credit Cards etc.!!

Aspiration groups

(Want to belong to) Disassociate groups (do not want to belong to)

Honda tries to disassociate from the "biker" group. The degree to which a reference
group will affect a purchase decision depends on an individual’s susceptibility to
reference group influence and the strength of his/her involvement with the group.

Social Class

An open group of individuals who have similar social rank. US is not a classless
society. US criteria; occupation, education, income, wealth, race, ethnic groups and
possessions. Social class influences many aspects of our lives. i.e.; upper middle class
Americans prefer luxury cars Mercedes.

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Upper-upper class, .3%, inherited wealth, aristocratic names .Upper uppers are
the social elite who live on inherited wealth and have well-known family
backgrounds. They give large sums to charity, run debutante balls, own more than
one home, and send their children to the finest schools. They are a market for
jewelry, antiques, homes, and vacations. They often buy and dress conservatively
rather than showing off their wealth. Although small in number, upper uppers serve
as a reference group for others.

Lower-upper class, 1.2%, newer social elite, from current professionals and
corporate elite.

Lower uppers have earned high income or wealth through exceptional ability in the
professions or business. They usually begin in the middle class. They tend to be
active in social and civic affairs and buy for themselves and their children the
symbols of status, such as expensive homes, schools, swimming pools, and
automobiles. They include the new rich who consume conspicuously to impress those
below them. They want to be accepted in the upper-upper stratum, a status more
likely to be achieved by their children than by themselves.

Upper-middle class, 12.5%, college graduates, managers and professionals

Upper middles possess neither family status nor unusual wealth. They are primarily
concerned with "career," They have attained positions as professionals, independent
businesspersons, and corporate managers. They believe in education and want their
children to develop professional or administrative skills. They are joiners and highly
civic-minded. They are the quality market for good homes, clothes, furniture, and
appliances.

Middle class, 32%, average pay white collar workers and blue collar friends.

The middle class is made up of average-pay white- and blue-collar workers who live
on "the better side of town" and try to "do the proper things." To keep up with the
trends, they often buy products that are popular. Most are concerned with fashion,
seeking the better brand names. Better living means owning a nice home in a nice
neighborhood with good schools. They believe in spending more money on

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worthwhile experiences for their children and aiming them toward a college
education.

Working class, 38%, average pay blue collar workers.

The working class consists of those who lead a "working-class lifestyle," whatever
their income, school background, or job. They depend heavily on relatives for
economic and emotional support, for advice on purchases, and for assistance in
times of trouble. The working class maintains sharper sex role division and
stereotyping.

Lower class, 9%, working, not on welfare

Upper lowers are working (are not on welfare), although their living standard is just
above poverty. They perform unskilled work for very poor pay although they strive
toward a higher class. Often, upper lowers lack education. Although they fall near the
poverty line financially, they manage to "present a picture of self-discipline" and
"maintain some effort at cleanliness."

Lower-lower class, 7%, on welfare

Lower lowers are on welfare, visibly poverty stricken, and usually out of work or have
"the dirtiest jobs." Often they are not interested in finding a job and are permanently
dependent on public aid or charity for income. Their homes, clothes, and possessions
are "dirty," "raggedy," and "broken-down."

Social class determines to some extent, the types, quality, and quantity of products
that a person buys or uses. Lower class people tend to stay close to home when
shopping; do not engage in much pre-purchase information gathering.

Stores project definite class images.

Family, reference groups and social classes are all social influences on consumer
behaviour. All operate within a larger culture.

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Celebrity Influence

This is an important tool which is able to influence Indian consumer buying

behaviour. In India, celebrities are being increasingly used in marketing
communication by marketers to lend personality to their products. With the visual
media becoming more popular the use of celebrities in the TV media has increased.
Celebrities create headlines. Their activities and movements are being closely
watched and imitated. What they endorse sell like hot cakes. It is not surprising
therefore that using celebrities in advertisements has become common practice. In
India especially, it is not difficult to look for the reasons as to why companies are
increasingly using celebrities. Indians always love their heroes and heroines.
Consumers like advertisements more if they are admirers of the celebrities in the
advertisements. When a consumer likes the celebrity in the advertisement, he or she
is more likely to accept what the celebrity says about the advertised product and
therefore will develop more positive feelings toward the advertisement and the brand
itself. Famous celebrities are able to attract attention and retain attention by their
mere presence in the advertisement

In the midst of the advertisement clutter, the advertisements that celebrities endorse
also achieve high recall rates. When people see their favoured reference group
members or celebrities in the advertisements, they pay more attention to them.

Celebrities may also help reposition products. Products with sagging sales needs
some boosting and in these Indian celebrities can help by way of the endorsing the
product concerned.

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Personal factors

Ability and Knowledge—

Need to understand individual’s capacity to learn. Learning, changes in a person's

behaviour caused by information and experience. Therefore to change consumers'
behaviour about your product, need to give them new information re: product...free
sample etc. When making buying decisions, buyers must process information.

Knowledge is the familiarity with the product and expertise.

Inexperience buyers often use prices as an indicator of quality more than those who
have knowledge of a product. Non-alcoholic Beer example: consumers chose the
most expensive six-pack, because they assume that the greater price indicates greater
quality.

Learning is the process through which a relatively permanent change in behaviour

results from the consequences of past behaviour.

Attitudes--

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Knowledge and positive and negative feelings about an object or activity-maybe
tangible or intangible, living or non living.....Drive perceptions Individual learns
attitudes through experience and interaction with other people. Consumer attitudes
toward a firm and its products greatly influence the success or failure of the firm's
marketing strategy. Honda "You meet the nicest people on a Honda” dispels the
unsavoury image of a motorbike rider, late 1950s. Changing market of the 1990s,
baby boomers aging, Hondas market returning to hard core. To change this they have
a new slogan "Come ride with us". Attitudes and attitude change are influenced by
consumer’s personality and lifestyle.

Consumers screen information that conflicts with their attitudes. Distort information
to make it consistent and selectively retain information that reinforces our attitudes.
IE brand loyalty. There is a difference between attitude and intention to buy (ability
to buy)

Personality-- all the internal traits and behaviours that make a person unique,
uniqueness arrives from a person's heredity and personal experience. Examples
include:

Work holism

Compulsiveness

Self confidence

Friendliness

Adaptability

Ambitiousness

Introversion

Extroversion

Aggressiveness

Competitiveness

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Traits affect the way people behave. Marketers try to match the store image to the
perceived image of their customers.

There is a weak association between personality and Buying Behaviour; this may be
due to unreliable measures. Nike ads. Consumers buy products that are consistent
with their self concept.

Lifestyles--

People coming from the same subculture, social class, and occupation may have quite
different lifestyles. Lifestyle is a person's pattern of living as expressed in his or her
psychographics. It involves measuring consumers' major AIO dimensions—activities
(work, hobbies, shopping, sports, social events), interests (food, fashion, family,
recreation), and opinions (about themselves, social issues, business, products).
Lifestyle captures something more than the person's social class or personality. It
profiles a person's whole pattern of acting and interacting in the world.

Several research firms have developed lifestyle classifications. The most widely used
is the SRI Consulting's Values and Lifestyles (VALS) y typology (see Figure 5.3).
VALS classifies people according to how they spend their time and money. It divides
consumers into eight groups based on two major dimensions: self-orientation and
resources. Self-orientation groups include principle-oriented consumers who buy
based on their views of the world; status-oriented buyers who base their purchases
on the actions and opinions of others; and action-oriented buyers who are driven by
their desire for activity, variety, and risk taking. Consumers within each orientation
are further classified into those with abundant resources and those with minimal
resources, depending on whether they have high or low levels of income, education,
health, self-confidence, energy, and other factors. Consumers with either very high or
very low levels of resources are classified without regard to their self-orientations
(actualizers, strugglers). Actualizers are people with so many resources that they can
indulge in any or all self-orientations. In contrast, strugglers are people with too few
resources to be included in any consumer orientation

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Economic Situation

A person's economic situation will affect product choice. Anna Flores can consider
buying an expensive Nikon if she has enough spendable income, savings, or
borrowing power. Marketers of income-sensitive goods watch trends in personal
income, savings, and interest rates. If economic indicators point to a recession,
marketers can take steps to redesign, reposition, and reprice their products closely.

4. Psychological factors

A person's buying choices are further influenced by four major psychological factors:
motivation, perception, learning, and beliefs and attitudes.

Motivation

A person has many needs at any given time. Some are biological, arising from states
of tension such as hunger, thirst, or discomfort. Others are psychological, arising
from the need for recognition, esteem, or belonging. Most of these needs will not be
strong enough to motivate the person to act at a given point in time. A need becomes
a motive when it is aroused to a sufficient level of intensity. A motive (or drive) is a
need that is sufficiently pressing to direct the person to seek satisfaction.
Psychologists have developed theories of human motivation. Two of the most
popular—the theories of Sigmund Freud and Abraham Maslow—have quite different
meanings for consumer analysis and marketing.

Perception

A motivated person is ready to act. How the person acts is influenced by his or her
own perception of the situation. All of us learn by the flow of information through
our five senses: sight, hearing, smell, touch, and taste. However, each of us receives,
organizes, and interprets this sensory information in an individual way. Perception is
the process by which people select, organize, and interpret information to form a
meaningful picture of the world.

People can form different perceptions of the same stimulus because of three
perceptual processes: selective attention, selective distortion, and selective retention.

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People are exposed to a great amount of stimuli every day. For example, the average
person may be exposed to more than 1,500 ads in a single day. It is impossible for a
person to pay attention to all these stimuli. Selective attention—the tendency for
people to screen out most of the information to which they are exposed—means that
marketers have to work especially hard to attract the consumer's attention.

Even noted stimuli do not always come across in the intended way. Each person fits
incoming information into an existing mind-set. Selective distortion describes the
tendency of people to interpret information in a way that will support what they
already believe. Selective distortion means that marketers must try to understand the
mind-sets of consumers and how these will affect interpretations of advertising and
sales information.

People also will forget much that they learn. They tend to retain information that
supports their attitudes and beliefs. Because of selective retention, Anna is likely to
remember good points made about the Nikon and to forget good points made about
competing cameras. Because of selective exposure, distortion, and retention,
marketers have to work hard to get their messages through. This fact explains why
marketers use so much drama and repetition in sending messages to their market.

Learning

When people act, they learn. Learning describes changes in an individual's behavior
arising from experience. Learning theorists say that most human behavior is learned.
Learning occurs through the interplay of drives, stimuli, cues, responses, and
reinforcement.

We saw that Anna Flores has a drive for self-actualization. A drive is a strong internal
stimulus that calls for action. Her drive becomes a motive when it is directed toward
a particular stimulus object, in this case a camera. Anna's response to the idea of
buying a camera is conditioned by the surrounding cues. Cues are minor stimuli that
determine when, where, and how the person responds.

Beliefs and Attitudes

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Through doing and learning, people acquire beliefs and attitudes. These, in turn,
influence their buying behavior. A belief is a descriptive thought that a person has
about something. Anna Flores may believe that a Nikon camera takes great pictures,
stands up well under hard use, and costs $450. These beliefs may be based on real
knowledge, opinion, or faith, and may or may not carry an emotional charge. For
example, Anna Flores's belief that a Nikon camera is heavy may or may not matter to
her decision.

Marketers are interested in the beliefs that people formulate about specific products
and services, because these beliefs make up product and brand images that affect
buying behavior. If some of the beliefs are wrong and prevent purchase, the marketer
will want to launch a campaign to correct them.

People have attitudes regarding religion, politics, clothes, music, food, and almost
everything else. Attitude describes a person's relatively consistent evaluations,
feelings, and tendencies toward an object or idea. Attitudes put people into a frame
of mind of liking or disliking things, of moving toward or away from them. Thus,
Anna Flores may hold attitudes such as "Buy the best," "The Japanese make the best
products in the world," and "Creativity and self-expression are among the most
important things in life." If so, the Nikon camera would fit well into Anna's existing
attitudes.

Attitudes are difficult to change. A person's attitudes fit into a pattern, and to change
one attitude may require difficult adjustments in many others. Thus, a company
should usually try to fit its products into existing attitudes rather than attempt to
change attitudes

Noodles History:

Noodles can be regarded as the second staple after rice in Asian countries. The great
thing about noodles is that they can be prepared in various combinations; with
sauces, in soup, fried, with all kinds of meat, seafood and vegetables. When
compared to rice, noodle meals are cheaper and more convenient. A great deal of
time can be saved in the preparing, consuming and dish washing processes.

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Therefore, despite its ancient origins, it is highly suited to the fast beat of modern
society.

The traditional Chinese noodle stalls in Hong Kong has changed little over half a
century. Like many traditional Chinese businesses, these were usually run by a
family, (typically the father acts as the cook and master, the mother the cashier, and
their children as waiters/ waitresses). Although the management of these stalls can
be very flexible, they lack of control on the quality of food and customer service.
Moreover, they do little to promote their shop image. The staffs seldom wear
uniform, and little attention is paid to food hygiene and the shop interior. Some stalls
have pets strolling around and some don't even have air conditioning. Usually the
menu is only in Chinese language, which is placed either under the greasy table glass
top or pasted along the walls.

The target customers are usually people in their neighbourhood and the business
relied mainly on the low price strategies, or by word of mouth. The way in which the
noodle is cooked is the crucial factor on getting return business. However, since the
current generations of young people nowadays are able to receive higher education,
they will not be eager to inherit their father's business. Given that running a noodle
stall is not considered as a particular prestigious and well-paid job. Therefore when
the master retires, he must pass on his technique to someone outside the family. It is
a customary practice though for Chinese chefs not to pass on everything. Therefore,
there is bound to be changes to the quality of the food once the business has changed
hands.

The Japanese noodle shops on the other hand are better organized. In the shop front,
there is usually a display window showing wax models of different set meals. The wax
models can imitate the food so successfully that it provides a mouth-watering image
to the passerby. When one walks into the shop, he will be greeted politely by trained
waitresses either wearing apron or some sort of uniform. The shop interior is
carefully design to reflect Japanese culture and is always clean and hygienic. The
menu is supplemented by some very attractive photographs. So that customer can be
assured what they order will match their expectations, even if they cannot read the
menu correctly.

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As the living standard of people in Hong Kong improves, their requirement on food is
no longer just to fill the stomach. The target customers of Japanese noodles are
usually the young generation and office workers. They are less price conscious and
are willing to pay more for better food quality, service and eating environment.
Although a bowl of noodle sold in a Japanese noodle shop could be at least three
times higher than those sold in a Chinese noodle stall, many people still think that it
is worth the money.

MAGGI
INTRODUCTION

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.

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 homemade snack, a smart move.

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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 an easy to cook snack that
could be prepared in just two minutes. The formula clicked well and Maggi became a
brand name

Nestlé’s Maggie noodles are the leading brand in the instant noodles segment in
India, enjoying a market share of 79.3%. The brand has grown to an estimated Rs
200 crores & contributes to around 10% of Nestle India’s top line. Being the pioneer
in the noodles market has given it a first mover’s advantage over other brands. Maggi
has regularly come up with new flavours and has recently launched two variants-
Vegetable Atta and Dal Atta noodles, catering to the increasing demand for healthy
snacks.

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 COMPANY PROFILE

NESTLE’
Nestle India

Nestle’ India is a subsidiary of Nestle’ S.A. of Switzerland. The company insists on

honesty, integrity and fairness in all aspects of its business and expects the same in
its relationships.

Nestle India- Presence across India

Beginning with its first investment in Moga in 1961, Nestlé’s regular and substantial
investments established that it was here to stay. In 1967, Nestlé set up its next factory
at Choladi (Tamil Nadu) as a pilot plant to process the tea grown in the area into
soluble tea. The Nanjangud factory (Karnataka), became operational in 1989, the
Samalkha factory (Haryana), in 1993 and in 1995 and 1997, Nestlé commissioned
two factories in Goa at Ponda and Bicholim respectively. Nestlé India is now putting
up the 7th factory at Pant Nagar in Uttaranchal.

Nestle’ Story
Nestlé was founded in 1867 on the shores of Lake Geneva in Vevey, Switzerland and
its first product was “Farine Lactée Nestlé”, an infant cereal specially formulated by
Henri Nestlé to provide and improve infant nutrition. From its first historic merger

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with the Anglo-Swiss Condensed Milk Company in 1905, Nestlé has grown to become
the world’s largest and most diversified food Company, and is about twice the size of
its nearest competitor in the food and beverage sector.
Nestlé’s trademark of birds in a nest, derived from Henri Nestlé’s personal coat of
arms, evokes the values upon which he founded his Company. Namely, the values of
security, maternity and affection, nature and nourishment, family and tradition.
Today, it is not only the central element of Nestlé’s corporate identity but serves to
define the Company’s products, responsibilities, business practices, ethics and goals.
In 2004, Nestlé had around 247,000 employees worldwide, operated 500 factories in
approx. 100 countries and offered over 8,000 products to millions of consumers
universally. The Company’s transparent business practices, pioneering environment
policy and respect for the fundamental values of different cultures have earned it an
enviable place in the countries it operates in. Nestlé’s activities contribute to and
nurture the sustainable economic development of people, communities and nations.
Above all, Nestlé is dedicated to bringing the joy of ‘Good Food, Good Life’ to people
throughout their lives, throughout the world.

Nestle’ Brands
Milk Products & Nutrition
Beverages
Prepared Dishes and Cooking Aids
Chocolates & Confectionary

A Maggi noodle is a brand of instant noodles manufactured by Nestlé. The brand

is popular in Australia, India, South Africa, Brazil, Nepal, New Zealand, Malaysia,
Singapore, Sri Lanka, Bangladesh, Pakistan, and the Philippines. In several
countries, it is also known as "Maggi mee" (mee is Indonesian/Malay for noodles).
Maggi noodles are part of the Maggi family, a Nestlé brand of instant soups, stocks,
and noodles. In Malaysia, there are fried noodles made from Maggi noodles known
as Maggi goreng. Maggi noodles recently introduced a new variety of its noodles, to
cater for the health conscious like 'No MSG', 'Less Salt', and 'No Trans fat'. Whole-
wheat flour based noodle variation marketed by the name "Vegetable Atta Noodles"
has been introduced in India (Atta flour is used in preparing most forms of wheat
based breads in India) and caters to health conscious buyers wary of the refined flour

34 | P a g e
used in the regular Maggi noodles. This move helps the brand in India as suburban
mothers, who feed the noodles to children as an afterschool snack, are the primary
customers of the brand. Recently, a line of rice noodles and whole wheat with pulses,
carrots, beans, and onions has also been introduced in India. In fact, "Maggi" has
become a well-known brand for instant noodles in India and Malaysia.

Nestlé India Ltd (NIL) offered a variety of culinary products such as instant noodles,
soups, sauces and ketchups, cooking aids (seasonings), etc., under the Maggi brand
(Refer to Exhibit II for Maggi's product portfolio as of mid-2006). Of these, instant
noodles had been NIL's main product category in the culinary segment since the
launch of Maggi 2 Minute Noodles (Maggi noodles) in 1982. Over the years, Maggi
noodles became a popular snack food product in India.

In mid 2008, New Zealand supermarkets introduced replacement formulations for

its Beef, Oriental, and Curry flavours. A new feature is an extra sachet containing
dehydrated vegetables. Maggi claims the new range contains 88% less total fat and
86% less saturated fat than the average of top-three (unnamed) 2-minute-noodle
competitors. The new Maggi range also has considerably lower fat than its own
previous formulation. However, the salt content has been increased by 31 percent.
Consumers have not reacted well to the new formulations, complaining that they
want the original chicken flavour back Claimed to be "2 minute noodles", The Maggi
noodle cake and seasoning is added into boiling water for two minutes and it is ready
for consumption. Egg, seaweed, boiled vegetables or lemon can also be added to the
noodles for a better flavour.

Market Summary

TARGET MARKETS

Primary target: Children (<16)

Nestle plans to widen its target audience by launching new variants Vegetable and
Dal atta, Multi grain noodles for health conscious people.

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MARKET DEMOGRAPHICS

Demographics:

Region: urban, semi-urban, rural (recent)

Occupation: Housewives, working professionals, self-employed

Sex: Unisex

Income: 1, 20,000 p.a. upwards

Social class: Middle and upwards

Family life cycle: Young, single, married with children.

Behavioural:

Occasions: Regular, Everyday user-urban, rural-depends on the temporal aspects of

the consumer’s life (varied usage in terms of time of time of day, week, month, year)

User status: first time user-rural, potential users-semi-urban, heavy users-urban

Usage rate: Heavy user-urban, light-rural, medium-semi-urban

Loyalty status: hard core and shifting loyal

Buyer-Readiness Stage: rural-some are aware, semi-urban: some intend to buy

(aware, informed), urban: informed (some desire, some intend to buy)

Attitude toward product: Enthusiastic, positive.

Psychographics:

Lifestyle: Hard pressed for time

CHILDREN

Children as an age group are a marketer’s delight. With “pester power” children play
a significant role in decision making and purchase choices of just about anything

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ranging from food items to beverages to chocolates. As consumers, children know
exactly what they want and do not experiment too much with flavour or colour.

Children rule

Indian families consider children to precious gifts of God, and parents in all income
groups do all they can for their offspring. Indian parents are still not completely
comfortable with paid baby sitters or day care help and use the larger extended
family or friends to help with care and supervision of children.

Rush for pre-school admissions

Throughout urban India, parents of nursery age children are looking to send them in
the best private school they can afford. Pre-schools for toddlers in the 2-3 age group
are mushrooming all over the country, as anxious parents recognise the perceived
benefits these can bring.

TEENAGERS

The teenager’s age group consists of children on the threshold of adolescence and as
a segment are a difficult lot. Though they are not sure about their choices on an
emotional plane, they are a trendy new group that is extremely savvy and self assured
when it comes to taking decisions regarding consumer goods and wants. Urban
children in this age group would have some amount of pocket money with an upper
limit of Rs100 per month. Though allowances have gone up, parental control still
exists over this market segment. Impulse foods rule the preference scale as far as the
buying behaviour of teenagers in India is concerned.

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In fact, the top six expense items for teenagers seem to be impulse foods: 17% of the
total pocket money spent on ice creams, 12% on chocolates and 10% each on soft
drinks and fast food according to a newspaper report in the “The Times of India”.

A key role to play in decision making

With increased awareness through television and advertising, teenagers are an

important influence on family decision-making in urban India. They have also
mastered the art of nagging their parents into making purchases of gadgets or
products that they want. Among the areas where they make their influence felt are
the purchase of such items as a newly launched chocolate bar, instant noodles and
breakfast cereal.

With a penchant for hi-tech and an ease with new technology far superior to their
parents, these teenagers are more familiar with operating mobile phones, the TV
remote, DVD player and computer programmes, as well as the product features.

Cricket-crazy boys

Cricket is the obsession and passion of boy teenagers in India. This interest cuts
across income and socio-economic groups. Low income boys will play on the streets

38 | P a g e
with makeshift bats and stumps, middle-income children can be seen playing in
gardens and at school, while boys from more well-to-do families go and play in
organised coaching camps. With their education demanding less time at this age,
parents are generally quite happy to see their boys spending so much time on cricket

STUDYING AGE

A rise in the number of colleges and institutions of higher learning both government
owned and privately financed has enabled a larger number of youth to graduate from
their portals.

This population grew since 2000 but is set to stagnate in the forecast period with
couples actually postponing the child bearing decision and some even rejecting the
idea of having one at all. This age group has taken up to snacking as a way of life as
they keep missing regular meals due to erratic schedules. They have longer waking
hours and due to this the traditional three meals does not suffice with the need for
filling snacks.

Rising financial freedom

With growing aspirations on the academic front and shrinking global boundaries this
age group has an unquenchable thirst for information whether through their PCs or
cell phones.

With a rise in employment opportunities in the Business Process Outsourcing (BPO)

sector, more and more consumers in this age group are juggling jobs along with their
studies for the sake of the financial freedom it gives them.

Summer jobs

Until the 1990s, summer vacations were a time to relax, read and catch up with
friends. This is no longer the case. Now, teenagers either find a summer job, or
undertake activities such as a trek in the mountains, river rafting or rock climbing.
Summer jobs may cover a range of activities from delivering newspapers to working
in a restaurant

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YOUNG ADULTS

Young adults (15-29 years old) represent the largest spending segment in the
country. Youngsters are part of a middle-class boom in India. Of the US$30 billion
spent by Indians on themselves in 2003, young adults spent close to US$10.5 billion
with their spending levels.

Need for convenience

Many single working professionals have to live away rising 12% each year at twice the
pace of the economy’s growth according to various trade press publications. Young
adults grew 8% in numbers over the 1999-2004 periods and are likely to grow at
approximately the same pace.

Rising disposable incomes

College graduates and students still studying are landing well-paying jobs in a host of

Emerging industries that barely existed at the start of the new millennium – retail
chains, fast food restaurants, mobile phone companies, call centres and data
processing firms. Many have access to disposable incomes of Rs8, 000-10,000 per
month thanks to the BPO boom in India.

This age group still does not have responsibilities of running a household, marriage
or worry about their children’s education. Thus, this income is almost entirely spent
on non-essential items. Most purchases made by this age group are on impulse.
There are 16 million urban consumers in the 20-25 age groups. From their parents
due to the demand of the jobs. This yuppies (young upwardly mobile professionals)
class has a hard time preparing food and for them convenience is major issue. They
are ready to pay a premium for quality and convenience. Also always being on the
move they have a need for food item that can be easily consumed and disposed of

MIDDLE-AGED ADULTS

These middle aged men have strict preferences over food and they generally stick to
their choices. They experiment less and go for products that will enhance their social
status. The women in this age group are ones who the primarily buy food items for

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the entire household though their choices are shaped by the preferences of the
household members. The women in this segment play an important role as most of
the choices of food items have to pass their scrutiny before it is consumed in the
household.

Responsibilities

Between the ages of 45 and 55, men find themselves with children who are able to
leave school or facing crucial board examinations. Some may also have wives with
settled careers. These factors make them reluctant to leave or move from their city of
residence and they would rather resign and move to another job rather than displace
the family. Others find themselves redundant in the new hire and fire labour
environment. There is a trend for such people to enter the BPO sector as well

Mid-life career change

In urban India, among the middle class, there are a significant number of men who
are making career switches, some out of choice and others out of necessity. Tired of
their current salaried jobs, some are taking the entrepreneurial plunge, setting up
businesses such as small IT- service firms, adventure tourism companies or
leadership training consultancies.

PENSIONERS

In the 1950s and 1960s, government jobs were among the few acceptable job
occupations for people from respectable households. Changing technology and
globalisation have changed that with unconventional income opportunities now
presenting themselves to Indians. Some pensioners have sought and enjoyed success
in information technology-related endeavours whilst others have put their
considerable English language skills to good use in service industries. Pensioners
have been the hardest hit section of the population. With declining interest rates,
they have had to play a more active role in financial management. Some of them are
even trying to keep abreast of current happenings and learning how to use a
computer or access the Internet.

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There food preferences are shaped by their health conditions and they stick to their
preferred food items.

Independent living on the rise

From the 1980s onwards, there has been a steady migration of young adults and
students to the US, in search of better opportunities. Most have chosen to settle and
make their lives in that country. Therefore, their ageing parents have had to learn to
continue to live independently.

Retirement communities viewed as an option

Retirement homes were previously viewed negatively in India. If the elderly went
there, it meant they had no one to care for them, and were in a sense for the destitute
elderly. In the new urban India, however, well-appointed retirement communities
are mushrooming, and couples in their 60s are going there of their own volition.

While the numbers are not yet significant, a trend is likely to increase in line with
growth in the numbers of India’s elderly. It is also now an option for the middle-
income and salaried classes. In families where there is a proprietary business, or a
family practice, two-to-three generations will continue to live together.

MARKET NEEDS

The urban Indian is used to having his dinner late from around 8:30 pm to as late as
11 pm.

Hence a convenient snack between lunch and dinner is an often exercised option. In
rural areas, smaller priced packs stimulate demand.

Maggi is a fun and convenience brand which sits strongly in its position as a "good to
eat, fast to cook" anytime snack and is popular across different age groups.
Opportunities in practically all consumption categories arise in terms of "reach" and
"medium of consumption". Hence the onus is on the company to make it easily
available and affordable and in different sizes, catering to different categories of
users like the new Maggi chota pack conveniently priced at Rs 5 for 50gms. The
Indian palate is not too adventurous in terms of trying out new flavours. In fact

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today, Maggi have settled at standard flavours such as curry, masala, tomato and
chicken and not much experimentation is necessarily required in the noodles market.
People prefer to have it easily available and affordable.

MARKET TRENDS

The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion

in 2015. Penetration level is only 30% for Maggi Noodles in urban areas as well as
per capita consumption for the Instant noodles and pasta segment is low indicating
the untapped market potential

The BRICs report indicates that India's per capita disposable income, currently at

US$ 556 per annum will raise to US$ 1150 by 2015 -another demand driver. Spurt in

The industrial and services sector growth is also likely to boost the urban
consumption demand.

Only about 8-10 per cent of output is processed and consumed in packaged form,
thus highlighting the huge potential for expansion of this industry. Currently, the
semi processed and ready to eat packaged food segment has a size of over US$ 70
billion and is growing at 15 per cent per annum.

FICCI Federation of Indian Chambers of Commerce and Industry has predicted an

overall growth of culinary products/snack food (10%).

MARKET GROWTH

General growth of the Indian Noodles sector FY 2005-2006

FICCI states that the culinary products and snack category, under which Maggi

noodles is classified, has had a robust growth of 8%.

Growing by a more than robust 21% in current value and 16% in volume, growth in

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noodles will be among the fastest in the various packaged food products in India.

(Refer Appendix A: Indian Instant Noodle Market Growth Graphs)

Current value sales of noodles in stood at slightly over Rs 9 billion, with pouch

instant noodles accounting for more than 66% of the total value sales.

Growth of Maggi Noodles FY 2005-2006

For the FY 2005-2006, the growth of Maggi noodles was an impressive 15%, with

sales at Rs 6.75 billion and profit at Rs 2 billion.

Maggi –PRODUCT LENGTH

1. Noodles

 Maggi 2-Minute Noodle ( Masala , Chicken, Curry

and Tomato)
 Maggi Dal Atta Noodles ( Sambhar taste)
 Vegetable Atta Maggi Noodles
 Maggi Rice Noodles (Lemon Masala, Chilly Chow
and Shahi Pulao)
 Maggi Cuppa mania (Masala yo, Chilli chow yo)
2. Sauces

 Teekha masala
 Tomoto chatpat
 Imli khata mitha
 Tomato ketchup
 Hot and sweet
 Tomato pudina
 Ginger, Garlic & Coriander

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  Maggi Oriental Chilli Garlic
 Ginger, Garlic & Coriander

3. Maggi Pichko

4. Soups Healthy

 Chef Style
- Cream Mushroom
- Sweet Sour Tomato Noodles
- Tangy Tomato Vegetables
 Home Style
- Creamy Chicken
- Mixed Vegetable
- Rich Tomato
 Chinese Style
- Chinese Hot Sour Chicken
- Chinese Sweet Corn Chicken
- Chinese Sweet Corn Vegetables
- Chinese Hot & Sour Vegetables

5. Maggi soup sanjivni

 Amla
 Badam
 Spinach
 Dal
 Tomato

6. Maggi bhuna masala

45 | P a g e
  Bhuna masala for gravy dishes
 Bhuna masala for vegetable dal

7.Maggi magic cubes

 Chicken
 Vegetarian masala

FOUR P’S OF MARKETING FOR MAGGI

PRICE

Considering the price points in the market for Maggi, it should continue to position
itself in the "snacks" category itself, since few would be willing to accept it as a meal
(Indian Consumption Habits - Noodles still aren’t taken as proper food item).

Affordable by all income groups.

PLACE:

• The distribution network is well spread

• Easily available in all kirana stores, retail store etc.
• Market share

PROMOTION:

Changed their advertising campaign- focus on health and nutrition.

Celebrity endorsements. E.g . . . . Javed Jafferi Sales promotion in schools and

offices, as the exercise of brand call.

Market research exercise-regards of taste and health issues. This helped maggi to
think about the customer. Distributed free samples-period of new launches.

46 | P a g e
 Invited housewives to send new innovative recipes.

Maggi's first product extension was Maggi instant soups launched in 1988. With the
launch of Maggi soups, NIL had become a pioneer in the organized packaged soup
market in India...

Taglines like 'Mummy, bhookh lagi hai' (Mom, I'm hungry), 'Bas 2-Minute,' (Only 2
minutes) and 'Fast to Cook Good to Eat' effectively communicated the product's
benefits to target consumers.

Michael Porter’s Five Forces Model

New entrants

1. Top Ramen

2. Horliks foodles

3. Sunfeast Pasta

Suppliers Industrial Rivalry Buyers

1. Distributers 1. Top Ramen 1. Customer’s mind
2. Raw material 2. Horliks foodles set

3. Packaging 3. Chowmeen etc. 2. Brand Image

Substitutes

1. Fast Food

2. Soups

3. Pasta

47 | P a g e
SWOT ANYLYSIS

Strengths

Strong brand recall and the product is almost eponymous to the brand.

Market leader with 79.3% market share in terms of value.

Highest advertising share (72% (TV AdEx 2004-05)).

Emotional relationship with the consumer.

A strong distribution network of the parent company

Weakness

Tagged as a product having no health value.

It has tried to bring in innovation but has

failed. (Dal Atta Noodles refer survey noodles).

The product features have remained almost constant since inception in 1983 with
any trial of innovation misfiring.

Market share has fallen from the 80% in

1998-99 to 79.3% in 2005-06

Opportunities

The instant noodles segment is projected to grow at a tremendous rate with the
market size doubling by 2010.

Increase in the potential consumer base i.e. single working professionals and student
population .

48 | P a g e
Rapid economic growth and rising disposable incomes make a strong case for a
premium brand like Maggi.

Upward trend of convenience food consumption.

Huge untapped serviceable upward class rural base

Threats

Competition is increasing with established competitors in other segments are

foraying into the noodles segment seeing the capacity of growth.

Top ramen the prime competitor has come up with new exciting instant noodle

Offerings like cup noodles and mug noodles which threaten to eat into Maggi’s
market share.

Foreign players like Wai Wai and Rum Pum have forayed into the noodles market
and have made their brand presence in eastern markets while indigenous

Parle is threatening to offer their distribution network to international noodle

brands wishing to make an entry.

Top Ramen has repositioned itself on a health platform with a new baseline “Get on
Top” fortifying its product with calcium and vitamins.

The product as priced higher than its main rival Top Ramen

Horlicks come up with new Horliks foodles.

49 | P a g e
 Horlicks

Company profile

GlaxoSmithKline Consumer Healthcare Ltd is one of the largest players in the Health
Food Drinks industry in India. The company is an Indian associate of
GlaxoSmithKline plc, UK. The company's principal activities are to manufacture and
distribute a wide range of healthcare foods, drugs, pharmaceuticals and dairy
products. The products include malted milk food, malted foods, biscuits, energy and
protein foods, milk powders, ghee, milk fluid and milk cream. The company has their
manufacturing facilities located at Nabha in Punjab, Rajahmundry in Andhra
Pradesh and Sonepat in Haryana. The products of GSK Consumer are categorized as
Nutritional and Over the Counter (OTC) products. The Nutritional division includes
health food drinks like Horlicks, which includes Junior Horlicks, Mother's Horlicks,
Women's Horlicks, Horlicks Lite, and Horlicks biscuits, Boost, Viva and Maltova.
The OTC division promotes and distributes a number of products in diverse
categories, including prominent brands such as, Crocin, Eno and Iodex.
GlaxoSmithKline Consumer Healthcare Ltd was incorporated in the year 1958 as
Hindustan Milkfood Manufacturers Pvt Ltd and was promoted by Horlicks Ltd. The
company became public in the year 1961. In the year 1969, Beecham plc acquired
Horlicks Ltd and became the majority shareholder in Hindustan Milkfood
Manufactures Ltd and in the year 1979, Beecham India Pvt Ltd merged with the
company. In the year 1991, the name of the company was changed to HMM Ltd. In
the year 1989, Beecham plc, UK and SmithKline, USA merged to form SmithKline
Beecham plc. The company became part of SmithKline Beecham and the name was
changed to SmithKline Beecham Brands Ltd. Again, in March 1994, the company
name was changed to SmithKline Beecham Consumer Healthcare Ltd, reasserting
their promise of providing healthcare to consumers. In the financial year 2000, the
company acquired two new brands Viva and Maltova along with their patents and
trademarks from Jagatjit Industries Ltd. The company also tied up the
manufacturing capacity of Jagatjit Industries Ltd for the manufacture of Viva and
Maltova on a long term contract. Glao Wellcom plc and SmithKline Beecham plc

50 | P a g e
merged and form a global organization GlaxoSmithKline plc. As the company is an
associate company of GlaxoSmithKline plc, the name of the company was changed
from SmithKline Beecham Consumer Healthcare Ltd to GlaxoSmithKline Consumer
Healthcare Ltd with effect from April 23, 2002. In the year 2002, the company
commissioned their new Spray Drier plant at Sonepat and the commercial
production was started form July 1, 2002. Also, Gussetted Pouch packing operations
were relocated from Nabha factory to a 'State of Art' greenfield facility set up by a
contracted third party at Mangaldoi, Assam. As a result of restructuring process, the
company's packing facility at Kolkata was closed with effect from September 2002.
The company is a consignment sales agent for marketing, selling & distribution of the
brand Iodex with effect form January 1, 2002. In the year 2004, the company has
launched Junior and Mother's Horlicks, Ready-to-Drink Horlicks & Boost and Hot
Vending Machines. In July 2004, they launched Boost Energy Shake, a new chilled
ready-to-drink variant of Boost in Tamil Nadu. Boost Energy Shake will be available
in a 200 ml tetra pack In the year 2005, the company opened a new secondary
manufacturing site (Legacy Foods) at Baddi in Himachal Pradesh. In February 2005,
they launched Horlicks in a new Toffee flavour. Toffee Horlicks is the sixth flavour in
the Horlicks portfolio. The other flavours are Chocolate, Vanilla, Honey Buzz,
Standard and Elaichi. In the year 2006, the company increased their installed
capacity of Malt Based Foods/Malted Foods and Ghee by 3260 MT and 924 MT
respectively. With this expansion the total installed capacity of Malt Based
Foods/Malted Foods and Ghee increased to 94060 MT and 4000 MT respectively. In
the year 2007, the company increased their installed capacity of Malt Based Foods
and Milkrose Baby Foods by 340 MT and 760 MT respectively. With this expansion,
the total installed capacity of Malt Based Foods and Milkrose Baby Foods increased
to 94400 MT and 2200 MT respectively. In the year 2008, the company launched
Women's Horlicks, which is specially formulated for women. New Women's Horlicks
is scientifically designed with a unique combination of Hemocaltm nutrients which
provides 100% of the daily requirement of iron, calcium, Vitamins B2, B6, B12 & C
for healthy blood and its normal function. New Women's Horlicks has no added
sugar and is low-fat. It is available in two exciting flavors- Chocolate and Caramel in
a jar with a unique flip top cap. Also, they launched Active Base and Boost White
during the year. In January 2009, the company launched 'Activ Grow', which is a

51 | P a g e
nutritious product launched for infant population. The product will be sold through
prescription only.

Foodles

GlaxoSmithKline’s (GSK) newest product Foodles has hit the markets about a month
back in the instant noodle category. GSK, which is world’s fourth largest
pharmaceutical, research-based company with a wide portfolio[1] of pharmaceutical
products covering anti-infectives, central nervous system, respiratory, gastro-
intestinal/metabolic, oncology, and vaccines products and is known in India for its
healthcare products and nutritional drinks, the most popular being Horlicks. The
company generates a good revenue from the nutritional drinks division in India (in
the range of Rs. 1,500 crore[2]) and now wishes to diversify its product range. But it
remains to be seen if it can compete with Nestle’s Maggi, the most dominant product
in the said category with an unbelievable market share of 91 % in an industry which
is worth nearly Rs. 1200 crore and growing at 20 percent per annum.

Foodles – The Brand

GSK launched Foodles under the name of Horlicks Foodles with two variants of
noodles. - Regular and Multi-grain. It was first launched in south India which
currently is the stronghold of GSK through the Horlicks brand. It is to go national
within a span of 6 months. The company aims to gain a higher single digit market

52 | P a g e
share within a year or two and establish itself as a player in the salty confectionary
foods division.

Foodles- What has been done

The problem with instant noodles has always been the fact that it is not very healthy.
Keeping that in mind, Maggi few years ago came out with the tag of –“taste bhi ,
health bhi” which has helped it in maintaining sales. Foodles has taken this one step
ahead and tried to create an USP out of the health factor associated with noodles. It
has made TV advertisements which highlight the fact that even though it is an instant

noodle, it is healthy and thus should be the consumer’s choice. Foodles also provides
an "Health Maker" sachet which comes along with the noodles pack which contains
the essentials of 5 vitamins[3]. Foodles has tried to create a product category for itself
by differentiating itself from instant noodles. Also, Foodles is currently trying to
appeal to the upper middle class in the urban areas and placed the product at a
premium price with Its multigrain variant costing Rs 15 for 80 gm compared to
Maggi’s Rs 10 for 80 gm[2]. Also, to use the distribution channel of Horlicks, initially
single packs of Foodles were given for free. So far, the start of Foodles marketing
strategy has been good, but is it enough to take on the leader of the market of 25
years? The past is not in favour of Foodles and it has also got to compete with brand
like HUL along with Maggi. Let us examine what more strategies can they can adopt
to appeal to the market.

Interesting Facts:-

Horlicks was first invented to substitute milk as baby food

The brand has been endorsed by Amitabh Bachchan on the radio(1960-70), Moon

Moon Sen and her daughters Raima and Riya (1980s) and Vishwanathan Anand

In India, over 2 billion cups of Horlicks are drunk every year!

Biggest market is India

53 | P a g e
6th most trusted brand in India (AC Nelson)

Most trusted health drink brand (Economic Times 04)

More than 50% market share in health drink market.

Evolution

The company believed in Growth through innovation. Previously Horlicks was

imported but as the demands exceeded they set up 2 production units in India to

fulfill the demands of the Indian population. This came as a solution to Indian

market as a health drink.

Then Horlicks entered the biscuit market and later in 1995 they came up with

Junior Horlicks as a baby food supplement. Viva and Maltova were acquired by

the company in 200 and 2001 that increased the product range.

Women‘s Horlicks came into picture initially nursing mothers and then to catering

specific needs of women. Horlicks adopted certain strategies to deal with

competitors and came up with attractive packaging and various flavours.

Horlicks conducted clinical trials and campaigned ―Taller Stronger Sharper‖.

Horlicks segmented the market to increase its market share. It focused on children

to encash their increasing population.

Then it launched Horlicks Lite which is specially formulated keeping in mind

nutritional needs of adults and also for use by people with diabetes.

Horlicks also entered the instant noodle market with Foodles and Nutribar came as

a energy bar focused on the young generation, these two products were focused as

a healthy solution to the existing fad market (plain maggi and energy bars

Recently Chill Dood is launched in the instant milk shake focused on children.

Horlicks is also involved in several campaigns one being the ASHA project

catering exclusively to the needs to the rural markets.

54 | P a g e
variant segment communication
medium
usededium

People who ad highlighted-

are
Junior Horlicks (1995) conscious The key message
about their is need
kids creation for
nutrition nutrition in
and better preschool
health. children.
Pre The handwritten
schoolers font style
created a sense of
innocence.
A-Z nutrition
along with
DHA for brain
development

Horlicks Ninja (1997) Children Organized

between 7- nationwide events
15 years like- Wiz kid &
Dream
Team.
Badlo Apne
Bachpan Ka
Size-Clinically
proven in
India that it makes
kids
Taller, Stronger,
Sharper
Introduced in
chocolate,
elaichi & vanilla
flavour to
attract children
Mother’s Horlicks (1997) Pregnant Ads promoted :-
women All round
Breast development of
feeding the baby.
women Improvement in
the birth
weight of the
baby.

Improvement in

55 | P a g e
 the quality
and quantity of
breast milk
during lactation

Horlicks Biscuits (1992) Parents Solid‘

Children Nourishment
containing 100%
RDA of
calcium.
Available in
standard &
elaichi flavour to
highlight
‗great taste‘ &
‗nourishment‘
factor

Horlicks Nutribar (2009) Children Multi cereal bar

Adults with vital
nutrients, fibre
and honey.
Best suited for
your apetite
anywhere anytime

Horlicks Foodles (2010) Growing Whole wheat and

children nutrients.
Rich in Vitamin
A, Vitamin
C and calcium.
Health maker with
power
vitamins

56 | P a g e
MARKET SUMMARY
FOUR P’S OF MARKETING FOR FOODLES

Product:
Horlicks is a widely regarded and highly respected 130-year-old brand. GSK has four
brands in the health food drinks segment. Apart from Horlicks, which contributes Rs
600 crores in revenue to the consumer healthcare division, it has Boost, Maltova and
Viva – the last three are much smaller brands than Horlicks. Faced with stagnating
sales in the health food drinks segment, the company has chalked out an aggressive
brand push strategy and a revamp for its flagship brand, Horlicks. The relaunch aims
to focus on children as Horlicks was previously considered as a nourishment drink
for old people. The company expects Horlicks contribution to the total turnover to be
around Rs 800 crore which amounts to a major chunk of the company’s turnover.
Horlicks is a nourishing malted food drink which combines the wholesome goodness
of malted barley, wheat and dairy ingredients. For more nourishment, Glaxo
SmithKline Consumer Healthcare India Ltd (GSKCH) has relaunched its flagship
brand Horlicks. To enable consumers choose different flavours, Horlicks is now
available in Regular, Chocolate, Creamy Vanilla and Honey Buzz varieties in a new
package. Horlicks drinks provide the following essential nutrients: Proteins,
Carbohydrate, Fat, Vitamin A, Niacin, Vitamin B1, VitaminB12, Vitamin E, Vitamin
B6, and Iron & Calcium

57 | P a g e
Price:

HORLICKS
Flavors (Rs)
Elaichi Chocolate Honey Buzz Vanilla
Weight(gm) Jar Refill Pack Jar Refill Pack Jar Jar
200 57 - 57 - - -
500 108 103 108 103 108 108
1000 199 189 - - - -
HORLICKS JUNIOR
Weight(gm) Jar Refill Pack
200 58 -
500 114 105

Target market:

Earlier Horlicks believed, white drinks are for the entire family in contrast to the
browns, whose prime target audience is children. This is probably because whites–
whose growth rate is faster than the browns–have the added advantage of being
perceived as food which enhances the healthy image of those who are recovering. But
gradually they realized that they have to focus on one segment of market that is
children. Horlicks is now positioned as a pleasurable nourishment drink aimed at
children between the age group of 8 -14. Nowadays children have tremendous
influence on the things purchased for the family and therefore we want children to
prefer Horlicks as a pleasurable nourishment drink. While all the action will be in the
general Horlicks segment, the focus of Junior Horlicks (target segment: kids between
one and three) will continue to remain the same.

Promotion:

The company has earmarked around Rs 10 crores for brand promotion throughout
2003, and 70% of this will be spent in next six months. Sixty-five per cent of the ad-
spend (around Rs 10 crores) will be for the visual medium and the balance for the
print and others. Apart from the high-decibel media campaign, the company also
plans to conduct an inter-school competition called “Activity 2003” in which around
1.5 million students are expected to take part. Unlike its other drink (the Rs 170-
crore Boost, promoted by Sachin Tendulkar); the new Horlicks does not have a brand
ambassador. While all the action will be in the general Horlicks segment, the focus of
Junior Horlicks (target segment: kids between one and three) will continue to remain

58 | P a g e
the same. The brand will continue to talk to the mother since the purchase decision
rests with her.’

The health drink brand from GSKCH – Horlicks – which has been traditionally
targeted as a ‘great family nourisher,’ has entered into the highly competitive
segment of instant noodles through its newly introduced Horlicks Foodles, aimed
to explore the category of salty snack food market.

Thus, Horlicks kick-off the Foodles offerings in two healthy variants: Regular and 4
Grain. Both variants come with a trademarked Healthmaker sachet which has 9
Power Vitamins. Besides, the 4 Grain variant is made with nutritious grains like Rice,
Ragi, Wheat and Corn. As a sub-variant, each of the two varieties comes in three
different flavours

The snack food in Noodles as such has no nutrition value (In fact, it is often criticized
as a junk food) but when it is combined with veggies – it tastes better (Probably
better than the plain maida variant!) and could also form a healthy snack for kids.

POSITIONING:

It was initially introduced both a substitute & an additive to milk and it was initially
positioned itself as “food for convalescing” & a nutrient supplement for kids only.

PROMOTION:

 Organized nationwide events like- Wiz kid & Dream Team.

 Epang Opang Japang .
 Say “No” to noodles.
 The word noodles replaced with “Foodles”.

CAMPAIGN:

“Badlo Apne Bachpan Ka Size”, takes the thought to the next level by
communicating how Horlicks enables kids to have a bigger, better, childhood while
growing Taller, Stronger, Sharper.

59 | P a g e
Place:

It has a strong marketing network in India comprising over 1800 wholesalers and
direct coverage of over 4,00,000 retail outlets. Horlicks sales have been strong in the
south and eastern markets which contributes about 46 per cent and 47 per cent of
the total sales. Milk-deficient South and East preferred white liquid powders
(Horlicks, Viva, and Complan) as the drink could be prepared with hot water.

Market Share of the Horliks

60 | P a g e
 Michel Porters model for Horliks foodles

New entrants

1. Top Ramen

2. Sunfeast Pasta

Suppliers Industrial Rivalry Buyers

1. Distributers 1. Maggi 1. Customer’s mind

set
2. Raw material 2.Top Ramen
2. Brand Image
3. Packaging 3. Chowmeen etc.

Substitutes

1. Fast Food

2. Soups

3. Pasta

61 | P a g e
 RESEARCH METHODOLOGY

STAGES IN RESEARCH :

62 | P a g e
Problem Defination
 To identify the consumer characteristics of the fast food industry.
 To understand the influence on purchasing consumers mind set.
 To know about customer acceptance of the product.
 To see the perception of consumers between any two fast food region of
Vadodara.
 To understand why customer buy a particular product.
 To help the company to know what consumer want in the product.
 To understand Brand Imagery, Brand Quality perceived by customers, Brand
credibility, consideration, superiority and feelings.

RESEARCH DESIGN:

Research Design:

The research will be carried out in the form of a survey which will be done in
Vadodara. The population has been segmented on the basis of Age Group

Sample Design:

The target population for our study is households. The sample will be selected by a
simple random sampling method .

Sample Size:

The sampling unit is 150 which are divided as follows:

Number of 150
respondents
Age-group 10 – 45
Survey Locations Pune

Age Group 10 - 25 25 - 35 35 – 45
Number of Respondents 50 50 50

63 | P a g e
 DATA COLLECTION PLAN

Data Gathering:
This study involves data collection (primary research) from different households in
four different areas of PUNE

SURVEY RESULTS:
1. Do you consume ready to eat food like noodles and pasta?

Chart Title
120
100
100
80
60 45
40
20
0
Yes No

Many people eat now days ready to eat food. Here maximum no is 82%.in this
segment working women are there so they preferred ready to eat food such as
noodles, pasta, etc.

2. Which of the following food item would you consume?

Chart Title
60
50
40
30
20
10
0
Maggi Top Ramen foodles pasta

64 | P a g e
Most of people eat Maggi such as (55% ) and top ramen. Foodles has gained the
market share of Maggi .Better advertisement campaign of foodles has been created
awareness of foodles. But still Maggi has more demand than the Foodles.

3. What is the frequency of consumption?

Chart Title
70 62
60
50
40 33
30 27
18
20
10
0
Everday more then a week once amonth No particular pattern

The frequency of Maggi consumption is more than any other products.

Maggi is still market leader in this segment.

4. What is the brand that comes to your mind when we say the word noodles?

Chart Title
70
Maggi , 61
60

50

40 Top Ramen, 33 Horliks Foodles

30 , 26 Sunfeast pasta,
20
20

10

0
Maggi Top Ramen
Horliks Foodles Sunfeast pasta

65 | P a g e
Brand Associations:

Sources of Brand equity like brand association of Maggi as a Brand was found
highest with the age group of 10-25 and the product category associated with it was
the noodles category Consumers in the age segment of 10-25 could easily relate
Maggi to noodles.

In the income wise category the brand association was highest with the income group
of 25k-40k were more than 40 respondents associated Maggi with noodles .The
implications from the findings discussed above seem that Maggi has good brand
association in terms of noodles. Consumers presume Maggi as Noodles and the
company’s philosophy of projecting the brand as noodles brand seem to be viable in
this regard.

5. Are you aware of Horlicks foodles ?

Chart Title
100
84
80
56
60

40

20

0
YES NO

There are total number of 84 respondents who said that they are aware of horlicks
but there are only 56 respondents who not aware of the same..

66 | P a g e
6. Would you like to try Horlicks Foodles?

90 83
80
70
57
60
50
40
30
20
10
0
Yes No

As Foodles has Brand name Horlicks has been associated with it so many people said
to try it. Also the impact of advertisement has been created the curiosity regarding
the foodles. So people are ready to try it.

Horliks come with a trademarked Health maker sachet which has 9 Power Vitamins.
Besides, the 4 Grain variant is made with nutritious grains like Rice, Ragi, Wheat and
Corn. As a sub-variant, each of the two varieties comes in three different flavors.

7. How do you aware of Horlicks?

50
44
45
40
35 31
30
25 23

20 17
15 12 13

10
5
0
Friends Newspaper Hording T.V ads Radio Family

The awareness through advertisement has shown by more than any other medium of
media. Then newspapers have also shown the positive impact regarding to foodles. It
is suggested that foodles has to concentrate on TV advertisement. Horliks

67 | P a g e
advertisement “SAY No TO NOODLES” which is gaining popularity and attracting
customer also giving an impact on the minds of customers who are health conscious
specially mother who are very worried about their growing child’s health. Already
Horliks has gained named in the segment of health drink so they are saying that our
noodles are healthy to you and your family through various advertisements.

8. On a scale of 1 to 5 rate Maggi on the following parameters

(1 very good, 2good, 3medium, 4 bad, 5very bad)

120
98 99
100 87 89 86
78
80
56
60 45
40
20
0

9. on a scale of 1 to 5 rate Horlicks foodles on the following parameters

(1 very good, 2good, 3medium, 4 bad, 5very bad)

120
98 99
100 87 89 86
78
80
56
60
45
40

20

68 | P a g e
10. According to you which age group prefer Maggi most?

70 63
60

50

40
32
30 26
19
20

10

0
4– 12 13– 26 27- 40 41– above

11. According to you which age group prefer foodles most?

70

60 58

50
41
40

30 25

20 16

10

0
4– 12 13– 26 27- 40 41– above

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12 .Which of the following do you think healthier product?

60
51
50

40 38

30 28
23 Series1

20

10

0
. Maggi Horliks Foodles Top Ramen Sunfeast Pasta

13. Which feature out of the following instigates you to buy the product of your
choice?

60

50 48
45

40
34

30

20

10

0
Family Individual Decision Promotional
/advertisement instigated
decision

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14. Do you keep switching on products?

100 92

80

60
48

40

20

0
Yes No

15. Demographic Information

Age:

Gender: M-------- F---------

Education: --------------------------

Occupation: ----------------------------

Income: -----------------------------

Children’s: -----------------------------

71 | P a g e
 RECOMMENDATIONS
After the conducted study following recommendations could be sited for Maggi
Brand.

To gain maximum leverage in terms of profit the company should pay emphasis on
segments with age groups 25-35 and above .Advertising is the key to success.
Targeting these segments will not only enhance the company’s profit margins but
also it will leverage the brand image of Maggi.

The company should advertise its products by depicting attributes related to Health
like Nutrition values, % of Vitamins, Proteins etc.This would help in customers
perceiving the product as Healthy

Foray into other food products like chips, chocolates etc under its sole brand name
would not only help in Brand extension but will also enhance Maggi’s market share.

Conclusion:

The food processing business in India is at a nascent stage. Currently, only about 10%
of the output is processed and consumed in packaged form thus highlighting huge
potential for expansion and growth. Traditionally, Indians believe in consuming
fresh stuff rather than packaged or frozen, but the trend is changing and the new fast
food generation is slowly changing.

Maggi Today The year 2010 saw India leading in worldwide Maggi sales. The brand
has grown to an estimated value of Rs 160-170 crores and contributes at least 8–9%
to Nestle India’s top line. All the same, some FMCG analysts feel that the brand has
not done much to expand the noodles category. Even after 25 years of its launch, the
size of the instant noodles market is yet quite small at Rs 300 crores. But yes, the
parent company, Nestle India Limited has certainly encouraged the brand to enter
into other culinary products

72 | P a g e
STPD ANALYSIS OF MAGGI BRAND

Segmentation: Market Segmentation divides the heterogeneous market into

homogenous groups of customers who share a similar set of needs/wants and could
be satisfied by specific products. Maggi Brand have segmented the market on the
basis of lifestyle and habits of URBAN FAMILIES.

Target: Market Targeting refers to evaluating and deciding from amongst the
various alternatives, which segment can be satisfied best by the company. The Maggi
Brand have mainly targeted the Kids, Youth, Office Goers & Working Woman which
falls into the category of “convenience-savvy time misers” who would like to get
something instant and be over with it quickly.

Positioning: Market Positioning is the act of designing the company’s offerings and
image to occupy a distinctive place in the minds of the target market. The goal of
positioning is to locate the brand in the minds of consumers to maximise the
potential benefit to the firm. Maggi has positioned itself in the SNACKS category and
not in the meal category since Indians do not consider noodles as a proper food item.
Therefore Maggi have developed its brand image of instant food products with
positioning statements such as “2 minutes noodles” and “Easy to cook, good to eat”.

Differentiations: Points-of-difference (PODs) are attributes or benefits

consumers strongly associate with a brand, positively evaluate and believe they could
not find to the same extent with a competitive brand. The Maggi Brand have also
differentiated its brand image from its competitors in terms of taste, flavours and
packaging. Maggi have launched wide varieties of products in different flavours
which can attract larger set of customers. Maggi products are also available in
different sizes catering to different customer needs.

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STPD Analysis of Horliks

Segmentation: Market Segmentation divides the heterogenous market into

homogenous groups of customers who share a similar set of needs/wants and could
be satisfied by specific products. Horlicks have segmented the market on the basis of
lifestyle and habits of URBAN FAMILIES.

Target: Market Targeting refers to evaluating and deciding from amongst the
various alternatives, which segment can be satisfied best by the company. The
Horlicks Brand have mainly targeted the Kids, Youth, Office Goers & Working
Woman which falls into the category of “Health-savvy ” who would like to get
something instant and be over with it quickly and it will be healthy.

Positioning: Market Positioning is the act of designing the company’s offerings and
image to occupy a distinctive place in the minds of the target market. The goal of
positioning is to locate the brand in the minds of consumers to maximise the
potential benefit to the firm. Foodles has positioned itself in the SNACKS category
and not in the meal category since Indians do not consider noodles as a proper food
item. Therefore Foodles have developed its brand image of instant food products
with positioning statements such as “No to noodles”.

Differentiations: Points-of-difference (PODs) are attributes or benefits

consumers strongly associate with a brand, positively evaluate and believe they could
not find to the same extent with a competitive brand. The Foodles Brand has also
differentiated its brand image from its competitors in terms of taste, flavours and
packaging. Foodles have launched wide varieties of products in different flavours
which can attract larger set of customers. Foodles products are also available in
different sizes catering to different customer needs.

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LIMITATIONS:

The present study is confined to a minimal sample size and may not reflect the
opinion or response of the entire population in general. The results of our study are
entirely confined to the responses of the Pune consumers and might deviate in terms
of actual population as a whole. Recommendations given after the study are entirely
dependent on the survey and the secondary analysis done in the report.

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 Bibliography
Books and Readings

Marketing – Philip Kotlar

Consumer behaviour-Michel R Solomon.

Websites

www.Google.com

www.Yahoo.com

www.gsk-ch.in

www.nestle.in/

http://trak.in/tags/business/2010/08/05/horlick-foodles-maggi-noodles/

en.wikipedia.org/wiki/Maggi

bestadreviews.blogspot.com

www.consumerpsychologist.com/

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 Annexure
Questionnaire

1Do you consume ready to eat food like noodles and pasta?

2Which of the following food item would you consume?

3What is the frequency of consumption?

4 What is the brand that comes to your mind when we say the word noodles?

5 Are you aware of Horliks foodles

6 How do you aware of Horliks?

7 Would you like to try Horliks Foodles?

8 On a scale of 1 to 5 rate Maggi on the following parameters

(1 very good, 2good, 3medium, 4 bad, 5very bad)

9 on a scale of 1 to 5 rate Horliks foodles on the following parameters

(1 very good, 2good, 3medium, 4 bad, 5very bad)

10 According to you which age group prefer Maggi most?

11. According to you which age group prefer foodles most?

12 .Which of the following do you think healthier product?

13. Which feature out of the following instigates you to buy the product of your
choice?

14. Do you keep switching on products?

15. Demographic Information

Age:

Gender: M-------- F---------

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Education: --------------------------

Occupation: ----------------------------

Income: -----------------------------

Children’s: -----------------------------

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