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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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D E C L A R A T I O N
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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PREFACEMarketing 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
2Introduction
7
3Strategic analysis of Maggi and Horlicks foodles (Company Profile)
33
4RESEARCH METHODOLOGY
63
5Survey Results
65
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
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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 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.
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2) Women – Only 23 % house wives in urban areas have jobs outside their
homes
STAGES OF CONSUMER BUYNG PROCESS
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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 between his or her actual state and some
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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
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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 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
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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
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
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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 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
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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:
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.
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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.
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.
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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 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.
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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 lower prices, special deals,
coupons, free samples, and advertising that presents reasons for trying
something new.
Factors Affecting the Consumer Buying Decision Process
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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
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.
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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-
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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 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
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(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.
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.
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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 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
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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.
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
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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.
Personal factors
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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
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Competitiveness
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
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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
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.
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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. 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
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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
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.
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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. 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
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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.
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
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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.
But still this didn’t work, as it was targeted towards the wrong target
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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.
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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 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
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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 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
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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.
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)
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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 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
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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.
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
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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 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.
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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
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.
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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 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
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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.
There food preferences are shaped by their health conditions and they
stick to their preferred food items.
Independent living on the rise
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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
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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
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
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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
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
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5. Maggi soup sanjivni
Amla
Badam
Spinach
Dal
Tomato
6. Maggi bhuna masala
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.
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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.
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
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New entrants
1. Top Ramen
2. Horliks foodles
3. Sunfeast Pasta
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.
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Industrial Rivalry
1. Top Ramen
2. Horliks foodles
3. Chowmeen etc.
Suppliers
1. Distributers
2. Raw material
3. Packaging
Buyers
1. Customer’s mind set
2. Brand Image
Substitutes
1. Fast Food
2. Soups
3. Pasta
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 .
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.
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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.
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
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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 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
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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 nutritious product launched for infant population.
The product will be sold through prescription only.
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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 share within a year or
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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
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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
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.
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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.
variant segment communication medium
usededium
Junior Horlicks (1995)
People who are conscious about their kids nutrition and better health. Pre schoolers
ad highlighted-
The key message is need creation for nutrition in preschool children. The handwritten font style created a sense of innocence. A-Z nutrition along with DHA for brain development
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Horlicks Ninja (1997) Children between 7- 15 years
Organized nationwide events 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 women Breast feeding women
Ads promoted :- All round development of the baby. Improvement in the birth weight of the baby. Improvement in the quality and quantity of breast milk during lactation
Horlicks Biscuits (1992) Parents Children
Solid‘ Nourishment containing 100% RDA of calcium. Available in standard & elaichi flavour to highlight ‗great taste‘ & ‗nourishment‘ factor
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Horlicks Nutribar (2009) Children Adults
Multi cereal bar with vital nutrients, fibre and honey. Best suited for your apetite anywhere anytime
Horlicks Foodles (2010) Growing children
Whole wheat and nutrients. Rich in Vitamin A, Vitamin C and calcium. Health maker with power vitamins
MARKET SUMMARY
FOUR P’S OF MARKETING FOR FOODLES
Product:
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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
Price:
HORLICKSFlavors (Rs)Elaichi Chocolate Honey Buzz Vanilla
Weight(gm) Jar Refill Pack Jar Refill Pack Jar Jar200 57 - 57 - - -500 108 103 108 103 108 1081000 199 189 - - - -HORLICKS JUNIORWeight(gm) Jar Refill Pack200 58 -500 114 105
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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 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
65 | P a g e
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.
Place:
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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
Michel Porters model for Horliks foodles
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Industrial Rivalry
1. Maggi
2.Top Ramen
3. Chowmeen etc.
New entrants
1. Top Ramen
2. Sunfeast Pasta
Buyers
1. Customer’s mind set
2. Brand Image
Suppliers
1. Distributers
2. Raw material
3. Packaging
Substitutes
1. Fast Food
2. Soups
3. Pasta
RESEARCH METHODOLOGY
STAGES IN RESEARCH :
69 | 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
respondents
150
Age-group 10 – 45
Survey Locations Pune
Age Group 10 - 25 25 - 35 35 – 45
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Number of Respondents 50 50 50
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?
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?
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Yes No0
20
40
60
80
100
120100
45
Chart Title
Maggi Top Ramen foodles pasta0
10
20
30
40
50
60
Chart Title
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?
Everday more then a week once amonth No particular pattern0
10
20
30
40
50
60
7062
3327
18
Chart Title
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?
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Maggi Top Ramen Horliks Foodles
Sunfeast pasta0
10
20
30
40
50
60
70Maggi ; 61
Top Ramen; 33Horliks Foodles
; 26 Sunfeast pasta; 20
Chart Title
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 ?
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YES NO0
102030405060708090 84
56
Chart Title
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..
6. Would you like to try Horlicks Foodles?
Yes No0
10
20
30
40
50
60
70
80
90 83
57
74 | P a g e
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?
Friends Newspaper Hording T.V ads
Radio Family 0
5
10
15
20
25
30
35
40
45
50
23
31
17
44
12 13
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 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
75 | P a g e
(1 very good, 2good, 3medium, 4 bad, 5very bad)
Taste
Variety
/Flav
ours
Hygien
e/Purit
y
Health
Packag
ingPric
e
Ingredien
ts
Brand
0
20
40
60
80
100
12098
87 8999
78
5645
86
9. on a scale of 1 to 5 rate Horlicks foodles on the following parameters
(1 very good, 2good, 3medium, 4 bad, 5very bad)
Taste
Variety
/Flav
ours
Hygien
e/Purit
y
Health
Packag
ingPric
e
Ingredien
ts
Brand
0
20
40
60
80
100
120
9887 89
99
78
5645
86
10. According to you which age group prefer Maggi most?
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4– 12 13– 26 27- 40 41– above0
10
20
30
40
50
60
7063
3226
19
11. According to you which age group prefer foodles most?
12 .Which of the following do you think healthier product?
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4– 12 13– 26 27- 40 41– above 0
10
20
30
40
50
60
70
58
41
25
16
. Maggi Horliks Foodles Top Ramen Sunfeast Pasta0
10
20
30
40
50
60
38
51
23
28Series1
13. Which feature out of the following instigates you to buy the product of your choice?
0102030405060
48
3445
14. Do you keep switching on products?
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Yes No0
102030405060708090
100
48
92
15. Demographic Information
Age:
Gender: M-------- F---------
Education: --------------------------
Occupation: ----------------------------
Income: -----------------------------
Children’s: -----------------------------
RECOMMENDATIONS
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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
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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.
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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.
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
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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.
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
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www.consumerpsychologist.com/
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?
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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---------
Education: --------------------------
Occupation: ----------------------------
Income: -----------------------------
Children’s: -----------------------------
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