Executive summary

Nestleacute India is a subsidiary of Nestleacute SA of Switzerland With six factories and a large number of co-packers Nestleacute India is a vibrant Company that provides consumers in India with products of global standards and is committed to long-term sustainable growth and shareholder satisfaction The company is known for its brands in the Milk Products amp Nutrition Prepared Dishes amp Cooking Aids and Chocolates amp Confectionery segments

Nestleacute leads the value sales of noodles in India with a market share of 793 A testament to Nestleacutes domination of the sales of plain noodles is the fact that for its instant noodles brand Maggi among all its global offices India accounts for the highest level of volume sales for the company

This marketing plan analyses the current marketing mix of Maggi Noodles studies the popularity of the two new health variants Vegetable Atta and Dal Atta Noodles and makes suggestions with regard to introducing a new brand ldquoCup O Maggirdquo in the cup noodles segment Various tools like surveys and secondary sources of information have been utilized for the purpose of this analysis

Contents

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 ldquo2-minute Noodlesrdquo printed on it has found a place on every kitchen Over the years Maggi has grown as a brand and positioned itself as a ldquoFast to cook Good to Eat ldquofood 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 amp a bean soup- the first launch of Maggi brand of instant foods in 1882-83Towards 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 home made snack a smart move But still this didnrsquot work as it was targeted towards the wrong target group the working women After conducting an extensive research the firm found that the children were the biggest consumers of Maggi noodles Quickly a strategy was developed to capture the kids segment with various tools of sales promotion like pencils fun books Maggi clubs which worked wonders for it No doubt the ads of Maggi have shown a hungry kid saying ldquoMummy bhookh lagi hairdquo to which his mom replies ldquoBas do minuterdquo 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 ldquoTaste bhi health bhirdquo The company could have easily positioned the product as a meal but did not as a study had shown that Indian mentality did not accept anything other than rice or roti as meal They made it a easy to cook snack that could be prepared in just two minutes The formula clicked well and Maggi became a brand name

1 Recommended Dietary Allowances for children of 7ndash9 years as per ldquoNutritive Value of Indian Foodsrdquo published by Indian Council of

Medical Research Reprinted lsquo04

COMPANY PROFILE

Nestleacutersquos relationship with India dates back to 1912 when it began trading as The Nestleacute Anglo-Swiss Condensed Milk Company (Export) Limited importing and selling finished products in the Indian market

After Indiarsquos independence in 1947 the economic policies of the Indian Government emphazised the need for local production Nestleacute responded to Indiarsquos aspirations by forming a company in India and set up its first factory in 1961 at Moga Punjab where the Government wanted Nestleacute to develop the milk economy Progress in Moga required the introduction of Nestleacutersquos Agricultural Services to educate advise and help the farmer in a variety of aspects From increasing the milk yield of their cows through improved dairy farming methods to irrigation scientific crop management practices and helping with the procurement of bank loans Nestleacute set up milk collection centres that would not only ensure prompt collection and pay fair prices but also instil amongst the community a confidence in the dairy business Progress involved the creation of prosperity on an on-going and sustainable basis that has resulted in not just the transformation of Moga into a prosperous and vibrant milk district today but a thriving hub of industrial activity as well For more on Nestleacute Agricultural Services

Nestleacute has been a partner in Indias growth for over nine decades now and has built a very special relationship of trust and commitment with the people of India The Companys activities in India have facilitated direct and indirect employment and provides livelihood to about one million people including farmers suppliers of packaging materials services and other goods

The Company continuously focuses its efforts to better understand the changing lifestyles of India and anticipate consumer needs in order to provide Taste Nutrition Health and Wellness through its product offerings The culture of innovation and renovation within the Company and access to the Nestleacute Groups proprietary technologyBrands expertise and the extensive centralized Research and Development facilities gives it a distinct advantage in these efforts It helps the Company to create value that can be sustained over the long term by offering consumers a wide variety of high quality safe food products at affordable prices

Nestleacute India manufactures products of truly international quality under internationally famous brand names such as NESCAFEacute MAGGI MILKYBAR MILO KIT KAT BAR-ONE MILKMAID and NESTEA and in recent years the Company has also introduced products of daily consumption and use such as NESTLEacute Milk NESTLEacute SLIM Milk NESTLEacute Fresh n Natural Dahi and NESTLEacute Jeera Raita

Nestleacute India is a responsible organization and facilitates initiatives that help to improve the quality of life in the communities where it operates

IMPORTANCE AND SCOPEMARKET NEEDS

The urban Indian is used to having his dinner late from around 830 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 stimulates 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 flavoursIn fact 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

10487071048707The FMCG market is set to treble from US$ 116 billion in 2003 to US$ 334 billion in 2015

10487071048707Penetration 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

Urban RuralPopulation 2005-06 (mn household) 53 135Population 2009-10 (mn household) 69 153 Distribution (2005-06) 28 72Markets (Towns) 3758 62700Universe of Outlets (mn) 1 33

Urban profile SourceStatistical Outline of India (2005-2006)

10487071048707Burgeoning Indian population particularly the middle class segments and the rural segments presents an opportunity to makers of branded products to convert consumers to branded products

10487071048707Growth is also likely to come from consumer upgrading in the matured product categories

10487071048707At 4 constant value CAGR into the forecast period value growth for packaged food is predicted to remain healthy Growth will continue to be fuelled by convenience products such as noodles and ready meals with 200 million people expected to shift to processed and packaged food by 2010

10487071048707Manufacturers are introducing low-priced goods in smaller pack sizes As a result the rural marketing efforts have pushed the demand for sachets in many consumer goods

markets Priced at Rs050-100 sachets have proved to be extremely popular in smaller towns and villages where households cannot afford to buy larger packs due to financial

MARKET GROWTH

General growth of the Indian Noodles sector FY 2005-2006 10487071048707FICCI states that the culinary products and snack category under which Maggi noodles is

classified has had a robust growth of 8

10487071048707Growing 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)

noodles accounting for more than 66 of the total value sales

Growth of Maggi Noodles FY 2005-2006 10487071048707For the FY 2005-2006 the growth of Maggi noodles was an impressive 15 with sales at Rs

675 billion and profit at Rs 2 billion

SWOT ANALYSIS

RESEARCH OBJECTIVES

HYPOTHESIS

QUESTIONNAIRE

RESEARCH METHODOLOGY

DATA ANALYSIS

FINDINGS

SUGGESSTIONS

LIMITATIONS

BIBLOGRAPHY

ANNEXURE

Contents

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 ldquo2-minute Noodlesrdquo printed on it has found a place on every kitchen Over the years Maggi has grown as a brand and positioned itself as a ldquoFast to cook Good to Eat ldquofood 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 amp a bean soup- the first launch of Maggi brand of instant foods in 1882-83Towards 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 home made snack a smart move But still this didnrsquot work as it was targeted towards the wrong target group the working women After conducting an extensive research the firm found that the children were the biggest consumers of Maggi noodles Quickly a strategy was developed to capture the kids segment with various tools of sales promotion like pencils fun books Maggi clubs which worked wonders for it No doubt the ads of Maggi have shown a hungry kid saying ldquoMummy bhookh lagi hairdquo to which his mom replies ldquoBas do minuterdquo 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 ldquoTaste bhi health bhirdquo The company could have easily positioned the product as a meal but did not as a study had shown that Indian mentality did not accept anything other than rice or roti as meal They made it a easy to cook snack that could be prepared in just two minutes The formula clicked well and Maggi became a brand name

1 Recommended Dietary Allowances for children of 7ndash9 years as per ldquoNutritive Value of Indian Foodsrdquo published by Indian Council of

Medical Research Reprinted lsquo04

COMPANY PROFILE

Nestleacutersquos relationship with India dates back to 1912 when it began trading as The Nestleacute Anglo-Swiss Condensed Milk Company (Export) Limited importing and selling finished products in the Indian market

After Indiarsquos independence in 1947 the economic policies of the Indian Government emphazised the need for local production Nestleacute responded to Indiarsquos aspirations by forming a company in India and set up its first factory in 1961 at Moga Punjab where the Government wanted Nestleacute to develop the milk economy Progress in Moga required the introduction of Nestleacutersquos Agricultural Services to educate advise and help the farmer in a variety of aspects From increasing the milk yield of their cows through improved dairy farming methods to irrigation scientific crop management practices and helping with the procurement of bank loans Nestleacute set up milk collection centres that would not only ensure prompt collection and pay fair prices but also instil amongst the community a confidence in the dairy business Progress involved the creation of prosperity on an on-going and sustainable basis that has resulted in not just the transformation of Moga into a prosperous and vibrant milk district today but a thriving hub of industrial activity as well For more on Nestleacute Agricultural Services

Nestleacute has been a partner in Indias growth for over nine decades now and has built a very special relationship of trust and commitment with the people of India The Companys activities in India have facilitated direct and indirect employment and provides livelihood to about one million people including farmers suppliers of packaging materials services and other goods

The Company continuously focuses its efforts to better understand the changing lifestyles of India and anticipate consumer needs in order to provide Taste Nutrition Health and Wellness through its product offerings The culture of innovation and renovation within the Company and access to the Nestleacute Groups proprietary technologyBrands expertise and the extensive centralized Research and Development facilities gives it a distinct advantage in these efforts It helps the Company to create value that can be sustained over the long term by offering consumers a wide variety of high quality safe food products at affordable prices

Nestleacute India manufactures products of truly international quality under internationally famous brand names such as NESCAFEacute MAGGI MILKYBAR MILO KIT KAT BAR-ONE MILKMAID and NESTEA and in recent years the Company has also introduced products of daily consumption and use such as NESTLEacute Milk NESTLEacute SLIM Milk NESTLEacute Fresh n Natural Dahi and NESTLEacute Jeera Raita

Nestleacute India is a responsible organization and facilitates initiatives that help to improve the quality of life in the communities where it operates

IMPORTANCE AND SCOPEMARKET NEEDS

The urban Indian is used to having his dinner late from around 830 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 stimulates 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 flavoursIn fact 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

10487071048707The FMCG market is set to treble from US$ 116 billion in 2003 to US$ 334 billion in 2015

10487071048707Penetration 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

Urban RuralPopulation 2005-06 (mn household) 53 135Population 2009-10 (mn household) 69 153 Distribution (2005-06) 28 72Markets (Towns) 3758 62700Universe of Outlets (mn) 1 33

Urban profile SourceStatistical Outline of India (2005-2006)

10487071048707Burgeoning Indian population particularly the middle class segments and the rural segments presents an opportunity to makers of branded products to convert consumers to branded products

10487071048707Growth is also likely to come from consumer upgrading in the matured product categories

10487071048707At 4 constant value CAGR into the forecast period value growth for packaged food is predicted to remain healthy Growth will continue to be fuelled by convenience products such as noodles and ready meals with 200 million people expected to shift to processed and packaged food by 2010

10487071048707Manufacturers are introducing low-priced goods in smaller pack sizes As a result the rural marketing efforts have pushed the demand for sachets in many consumer goods

markets Priced at Rs050-100 sachets have proved to be extremely popular in smaller towns and villages where households cannot afford to buy larger packs due to financial

MARKET GROWTH

General growth of the Indian Noodles sector FY 2005-2006 10487071048707FICCI states that the culinary products and snack category under which Maggi noodles is

classified has had a robust growth of 8

10487071048707Growing 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)

noodles accounting for more than 66 of the total value sales

Growth of Maggi Noodles FY 2005-2006 10487071048707For the FY 2005-2006 the growth of Maggi noodles was an impressive 15 with sales at Rs

675 billion and profit at Rs 2 billion

SWOT ANALYSIS

RESEARCH OBJECTIVES

HYPOTHESIS

QUESTIONNAIRE

RESEARCH METHODOLOGY

DATA ANALYSIS

FINDINGS

SUGGESSTIONS

LIMITATIONS

BIBLOGRAPHY

ANNEXURE

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 ldquo2-minute Noodlesrdquo printed on it has found a place on every kitchen Over the years Maggi has grown as a brand and positioned itself as a ldquoFast to cook Good to Eat ldquofood 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 amp a bean soup- the first launch of Maggi brand of instant foods in 1882-83Towards 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 home made snack a smart move But still this didnrsquot work as it was targeted towards the wrong target group the working women After conducting an extensive research the firm found that the children were the biggest consumers of Maggi noodles Quickly a strategy was developed to capture the kids segment with various tools of sales promotion like pencils fun books Maggi clubs which worked wonders for it No doubt the ads of Maggi have shown a hungry kid saying ldquoMummy bhookh lagi hairdquo to which his mom replies ldquoBas do minuterdquo 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 ldquoTaste bhi health bhirdquo The company could have easily positioned the product as a meal but did not as a study had shown that Indian mentality did not accept anything other than rice or roti as meal They made it a easy to cook snack that could be prepared in just two minutes The formula clicked well and Maggi became a brand name

1 Recommended Dietary Allowances for children of 7ndash9 years as per ldquoNutritive Value of Indian Foodsrdquo published by Indian Council of

Medical Research Reprinted lsquo04

COMPANY PROFILE

Nestleacutersquos relationship with India dates back to 1912 when it began trading as The Nestleacute Anglo-Swiss Condensed Milk Company (Export) Limited importing and selling finished products in the Indian market

After Indiarsquos independence in 1947 the economic policies of the Indian Government emphazised the need for local production Nestleacute responded to Indiarsquos aspirations by forming a company in India and set up its first factory in 1961 at Moga Punjab where the Government wanted Nestleacute to develop the milk economy Progress in Moga required the introduction of Nestleacutersquos Agricultural Services to educate advise and help the farmer in a variety of aspects From increasing the milk yield of their cows through improved dairy farming methods to irrigation scientific crop management practices and helping with the procurement of bank loans Nestleacute set up milk collection centres that would not only ensure prompt collection and pay fair prices but also instil amongst the community a confidence in the dairy business Progress involved the creation of prosperity on an on-going and sustainable basis that has resulted in not just the transformation of Moga into a prosperous and vibrant milk district today but a thriving hub of industrial activity as well For more on Nestleacute Agricultural Services

Nestleacute has been a partner in Indias growth for over nine decades now and has built a very special relationship of trust and commitment with the people of India The Companys activities in India have facilitated direct and indirect employment and provides livelihood to about one million people including farmers suppliers of packaging materials services and other goods

The Company continuously focuses its efforts to better understand the changing lifestyles of India and anticipate consumer needs in order to provide Taste Nutrition Health and Wellness through its product offerings The culture of innovation and renovation within the Company and access to the Nestleacute Groups proprietary technologyBrands expertise and the extensive centralized Research and Development facilities gives it a distinct advantage in these efforts It helps the Company to create value that can be sustained over the long term by offering consumers a wide variety of high quality safe food products at affordable prices

Nestleacute India manufactures products of truly international quality under internationally famous brand names such as NESCAFEacute MAGGI MILKYBAR MILO KIT KAT BAR-ONE MILKMAID and NESTEA and in recent years the Company has also introduced products of daily consumption and use such as NESTLEacute Milk NESTLEacute SLIM Milk NESTLEacute Fresh n Natural Dahi and NESTLEacute Jeera Raita

Nestleacute India is a responsible organization and facilitates initiatives that help to improve the quality of life in the communities where it operates

IMPORTANCE AND SCOPEMARKET NEEDS

The urban Indian is used to having his dinner late from around 830 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 stimulates 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 flavoursIn fact 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

10487071048707The FMCG market is set to treble from US$ 116 billion in 2003 to US$ 334 billion in 2015

10487071048707Penetration 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

Urban RuralPopulation 2005-06 (mn household) 53 135Population 2009-10 (mn household) 69 153 Distribution (2005-06) 28 72Markets (Towns) 3758 62700Universe of Outlets (mn) 1 33

Urban profile SourceStatistical Outline of India (2005-2006)

10487071048707Burgeoning Indian population particularly the middle class segments and the rural segments presents an opportunity to makers of branded products to convert consumers to branded products

10487071048707Growth is also likely to come from consumer upgrading in the matured product categories

10487071048707At 4 constant value CAGR into the forecast period value growth for packaged food is predicted to remain healthy Growth will continue to be fuelled by convenience products such as noodles and ready meals with 200 million people expected to shift to processed and packaged food by 2010

10487071048707Manufacturers are introducing low-priced goods in smaller pack sizes As a result the rural marketing efforts have pushed the demand for sachets in many consumer goods

markets Priced at Rs050-100 sachets have proved to be extremely popular in smaller towns and villages where households cannot afford to buy larger packs due to financial

MARKET GROWTH

General growth of the Indian Noodles sector FY 2005-2006 10487071048707FICCI states that the culinary products and snack category under which Maggi noodles is

classified has had a robust growth of 8

10487071048707Growing 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)

noodles accounting for more than 66 of the total value sales

Growth of Maggi Noodles FY 2005-2006 10487071048707For the FY 2005-2006 the growth of Maggi noodles was an impressive 15 with sales at Rs

675 billion and profit at Rs 2 billion

SWOT ANALYSIS

RESEARCH OBJECTIVES

HYPOTHESIS

QUESTIONNAIRE

RESEARCH METHODOLOGY

DATA ANALYSIS

FINDINGS

SUGGESSTIONS

LIMITATIONS

BIBLOGRAPHY

ANNEXURE

COMPANY PROFILE

Nestleacutersquos relationship with India dates back to 1912 when it began trading as The Nestleacute Anglo-Swiss Condensed Milk Company (Export) Limited importing and selling finished products in the Indian market

After Indiarsquos independence in 1947 the economic policies of the Indian Government emphazised the need for local production Nestleacute responded to Indiarsquos aspirations by forming a company in India and set up its first factory in 1961 at Moga Punjab where the Government wanted Nestleacute to develop the milk economy Progress in Moga required the introduction of Nestleacutersquos Agricultural Services to educate advise and help the farmer in a variety of aspects From increasing the milk yield of their cows through improved dairy farming methods to irrigation scientific crop management practices and helping with the procurement of bank loans Nestleacute set up milk collection centres that would not only ensure prompt collection and pay fair prices but also instil amongst the community a confidence in the dairy business Progress involved the creation of prosperity on an on-going and sustainable basis that has resulted in not just the transformation of Moga into a prosperous and vibrant milk district today but a thriving hub of industrial activity as well For more on Nestleacute Agricultural Services

Nestleacute has been a partner in Indias growth for over nine decades now and has built a very special relationship of trust and commitment with the people of India The Companys activities in India have facilitated direct and indirect employment and provides livelihood to about one million people including farmers suppliers of packaging materials services and other goods

The Company continuously focuses its efforts to better understand the changing lifestyles of India and anticipate consumer needs in order to provide Taste Nutrition Health and Wellness through its product offerings The culture of innovation and renovation within the Company and access to the Nestleacute Groups proprietary technologyBrands expertise and the extensive centralized Research and Development facilities gives it a distinct advantage in these efforts It helps the Company to create value that can be sustained over the long term by offering consumers a wide variety of high quality safe food products at affordable prices

Nestleacute India manufactures products of truly international quality under internationally famous brand names such as NESCAFEacute MAGGI MILKYBAR MILO KIT KAT BAR-ONE MILKMAID and NESTEA and in recent years the Company has also introduced products of daily consumption and use such as NESTLEacute Milk NESTLEacute SLIM Milk NESTLEacute Fresh n Natural Dahi and NESTLEacute Jeera Raita

Nestleacute India is a responsible organization and facilitates initiatives that help to improve the quality of life in the communities where it operates

IMPORTANCE AND SCOPEMARKET NEEDS

The urban Indian is used to having his dinner late from around 830 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 stimulates 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 flavoursIn fact 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

10487071048707The FMCG market is set to treble from US$ 116 billion in 2003 to US$ 334 billion in 2015

10487071048707Penetration 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

Urban RuralPopulation 2005-06 (mn household) 53 135Population 2009-10 (mn household) 69 153 Distribution (2005-06) 28 72Markets (Towns) 3758 62700Universe of Outlets (mn) 1 33

Urban profile SourceStatistical Outline of India (2005-2006)

10487071048707Burgeoning Indian population particularly the middle class segments and the rural segments presents an opportunity to makers of branded products to convert consumers to branded products

10487071048707Growth is also likely to come from consumer upgrading in the matured product categories

10487071048707At 4 constant value CAGR into the forecast period value growth for packaged food is predicted to remain healthy Growth will continue to be fuelled by convenience products such as noodles and ready meals with 200 million people expected to shift to processed and packaged food by 2010

10487071048707Manufacturers are introducing low-priced goods in smaller pack sizes As a result the rural marketing efforts have pushed the demand for sachets in many consumer goods

markets Priced at Rs050-100 sachets have proved to be extremely popular in smaller towns and villages where households cannot afford to buy larger packs due to financial

MARKET GROWTH

General growth of the Indian Noodles sector FY 2005-2006 10487071048707FICCI states that the culinary products and snack category under which Maggi noodles is

classified has had a robust growth of 8

10487071048707Growing 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)

noodles accounting for more than 66 of the total value sales

Growth of Maggi Noodles FY 2005-2006 10487071048707For the FY 2005-2006 the growth of Maggi noodles was an impressive 15 with sales at Rs

675 billion and profit at Rs 2 billion

SWOT ANALYSIS

RESEARCH OBJECTIVES

HYPOTHESIS

QUESTIONNAIRE

RESEARCH METHODOLOGY

DATA ANALYSIS

FINDINGS

SUGGESSTIONS

LIMITATIONS

BIBLOGRAPHY

ANNEXURE

IMPORTANCE AND SCOPEMARKET NEEDS

The urban Indian is used to having his dinner late from around 830 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 stimulates 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 flavoursIn fact 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

10487071048707The FMCG market is set to treble from US$ 116 billion in 2003 to US$ 334 billion in 2015

10487071048707Penetration 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

Urban RuralPopulation 2005-06 (mn household) 53 135Population 2009-10 (mn household) 69 153 Distribution (2005-06) 28 72Markets (Towns) 3758 62700Universe of Outlets (mn) 1 33

Urban profile SourceStatistical Outline of India (2005-2006)

10487071048707Burgeoning Indian population particularly the middle class segments and the rural segments presents an opportunity to makers of branded products to convert consumers to branded products

10487071048707Growth is also likely to come from consumer upgrading in the matured product categories

10487071048707At 4 constant value CAGR into the forecast period value growth for packaged food is predicted to remain healthy Growth will continue to be fuelled by convenience products such as noodles and ready meals with 200 million people expected to shift to processed and packaged food by 2010

10487071048707Manufacturers are introducing low-priced goods in smaller pack sizes As a result the rural marketing efforts have pushed the demand for sachets in many consumer goods

markets Priced at Rs050-100 sachets have proved to be extremely popular in smaller towns and villages where households cannot afford to buy larger packs due to financial

MARKET GROWTH

General growth of the Indian Noodles sector FY 2005-2006 10487071048707FICCI states that the culinary products and snack category under which Maggi noodles is

classified has had a robust growth of 8

10487071048707Growing 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)

noodles accounting for more than 66 of the total value sales

Growth of Maggi Noodles FY 2005-2006 10487071048707For the FY 2005-2006 the growth of Maggi noodles was an impressive 15 with sales at Rs

675 billion and profit at Rs 2 billion

SWOT ANALYSIS

RESEARCH OBJECTIVES

HYPOTHESIS

QUESTIONNAIRE

RESEARCH METHODOLOGY

DATA ANALYSIS

FINDINGS

SUGGESSTIONS

LIMITATIONS

BIBLOGRAPHY

ANNEXURE

MARKET GROWTH

General growth of the Indian Noodles sector FY 2005-2006 10487071048707FICCI states that the culinary products and snack category under which Maggi noodles is

classified has had a robust growth of 8

10487071048707Growing 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)

noodles accounting for more than 66 of the total value sales

Growth of Maggi Noodles FY 2005-2006 10487071048707For the FY 2005-2006 the growth of Maggi noodles was an impressive 15 with sales at Rs

675 billion and profit at Rs 2 billion

SWOT ANALYSIS

RESEARCH OBJECTIVES

HYPOTHESIS

QUESTIONNAIRE

RESEARCH METHODOLOGY

DATA ANALYSIS

FINDINGS

SUGGESSTIONS

LIMITATIONS

BIBLOGRAPHY

ANNEXURE

SWOT ANALYSIS

RESEARCH OBJECTIVES

HYPOTHESIS

QUESTIONNAIRE

RESEARCH METHODOLOGY

DATA ANALYSIS

FINDINGS

SUGGESSTIONS

LIMITATIONS

BIBLOGRAPHY

ANNEXURE

RESEARCH OBJECTIVES

HYPOTHESIS

QUESTIONNAIRE

RESEARCH METHODOLOGY

DATA ANALYSIS

FINDINGS

SUGGESSTIONS

LIMITATIONS

BIBLOGRAPHY

ANNEXURE

HYPOTHESIS

QUESTIONNAIRE

RESEARCH METHODOLOGY

DATA ANALYSIS

FINDINGS

SUGGESSTIONS

LIMITATIONS

BIBLOGRAPHY

ANNEXURE

QUESTIONNAIRE

RESEARCH METHODOLOGY

DATA ANALYSIS

FINDINGS

SUGGESSTIONS

LIMITATIONS

BIBLOGRAPHY

ANNEXURE

RESEARCH METHODOLOGY

DATA ANALYSIS

FINDINGS

SUGGESSTIONS

LIMITATIONS

BIBLOGRAPHY

ANNEXURE

DATA ANALYSIS

FINDINGS

SUGGESSTIONS

LIMITATIONS

BIBLOGRAPHY

ANNEXURE

FINDINGS

SUGGESSTIONS

LIMITATIONS

BIBLOGRAPHY

ANNEXURE

SUGGESSTIONS

LIMITATIONS

BIBLOGRAPHY

ANNEXURE

LIMITATIONS

BIBLOGRAPHY

ANNEXURE

BIBLOGRAPHY

ANNEXURE

ANNEXURE