PROJECT

ON“Comparative study on marketing mix of selected brands of

Tomato Ketchup (Maggi, Kissan & Cremica) and its impact on

consumer buying behavior.

1. INTRODUCTION :-

India is a diverse country where different states have different consumption patterns and

customs. Competition has become the key word in today’s scenario. Till 1970’s and 80’s Maggie

and Kissan were the major ketchup brands but after liberalization Heinz entered Indian market

which offered tough competition. These major giants are also facing competition from many

local players like Tops, Cremica and other local brands. The ketchup market in India is estimated

to be around Rs 220 crore, largely dominated by Nestlé’s Maggi that owns 47% of the market

and the Kissan that owns 26%. Upto mid eighties Kissan was the number one brand in Tomato

Ketchup and around that time the competition came from Maggi -- a Nestlé’s brand

( Anonymous,2009 ).

This project is undertaken to study and understand the 4 P’s of marketing which includes

PRODUCT, PRICE, PLACE and PROMOTION of three brands of tomato Ketchup and its

impact on the consumer buying behaviour. The various brands of the tomato ketchup selected for

the study are Maggi, Kissan,………………………. and Cremica. Price helps in analyzing

whether it is competitively priced or not. Promotions showcases which mode of promotion is

most effective and how do consumers respond to various celebrity endorsements. Place focuses

on efficiency of distribution network of Tomato Ketchup.

There are various strategies which are used by manufacturers in marketing their product. The

popularity of the brand or the brand positioning depends upon various factors. The manufacturer

uses his strengths and opportunities for survival and to overcome against threats and its

weakness. Marketing mix or 4 P’s of marketing is the most important tool of any organisation.

( Anonymous (2001), Marketing mix )

Marketing mix has an impact on the buying decision of a consumer. Marketing is used to

identify the customer, to keep the customer, and to satisfy the customer. To understand the

behaviour of consumer, marketer must know how a consumer make decision before buying any

product for this consumer decision making (consumer buying behaviour) have to be studied.

The consumer decision making is a process having various stages which are as Need

Recognition: The buying process starts when the buyer recognizes a problem or need. The need

can be triggered by internal or external stimuli. Marketers need to identify the circumstances that

trigger a particular need. By gathering information from a number of consumers, marketers can

identify the most frequent stimuli that spark and interested in a product category. They can

develop marketing strategies that trigger consumer’s interest.

Information search: An aroused consumer will be inclined to search for more information. At

this level a person simply becomes more receptive to information about a product.

Consumer information sources fall into four groups; Personal sources, Commercial sources,

Public sources. Through gathering information, the consumer learns about competing brands and

their features.

Evaluation of alternatives: There is no single evaluation process used by all consumers or by

one consumer in all buying situation. There are several decision evaluation processes, First, the

consumer is trying to satisfy a need. Second, the consumer is looking for certain benefits from

the product solution. Third, the consumers see each product as a bundle of attributes with

varying abilities of delivering the benefits sought to satisfy this need.

Purchase Decision: In evaluation stage, the consumer forms preferences among the brands in the

choice set. The consumer may also form an intention to buy most preferred brand. However, two

factors can intervene between the purchase intentions and the purchase decision.

Post purchase behaviour: after purchasing the product the consumer will experience some level

of satisfaction or dissatisfaction. The marketers job does not end when the product is bought

marketers must monitor post purchase satisfaction; post purchase action and post purchase

product users.

There are various environmental variables which also effect the position of the brand. This

includes customer variable, competition, trade, technology and government variable. Marketing

mix and environmental factors are closely related which affect the consumer buying behaviour.

( Anonymous, Consumer behaviour )

This project is focussed on the studying the marketing mix of tomato ketchup and its three

brands ( Maggi, Kissan , Cremica) and the buying behaviour of its consumers in selected area of

Ludhiana city. As this project is done by the student of marketing and consumer behaviour, he or

she must know about the strategies which a marketer formulate and plan for the brand extension

and profitability. As marketing mix is based on the consumer behaviour the relationship have

been studied in this project.

The study has been planned with the following objectives :

1. To study the 4P’s of marketing of three selected brands of tomato ketchup i.e. Maggi,

Kissan and Cremica.

2. To study the consumer buying behaviour in regard to these selected brands of tomato

ketchup.

3. To do the comparative analysis of the three selected brands of tomato ketchups based

upon the marketing mix and consumer buying behaviour.

Four P ’s of marketing used by brands

About Maggi Tomato Ketchup :-

[source : http://upload.wikimedia.org/wikipedia/de/thumb/0/06/Maggi-logo.svg/677px-Maggi-logo.svg.png ]

Maggi Tomato Ketchup is primarily a taste enhancer, giving the food provider taste, aroma and

also contains iodised salt. Nestle was seriously working on brand extension to leverage brand

success in some potential product categories. The company finally decided to enter ketchup

market with the brand Maggi. Finally in 1985 when Maggi noodles had reached 4000 tonnes

business, they ensured the establishment of the brand Maggi and launched their Maggi ketchup.

Market leader Kissan was selling its ketchup in 500 gm. Nestle decided upon 400 gm bottle to

give the consumer a ‘price- point’ advantage. The main launched its product all over India. The

main focusing aspect of their advertisement was ‘what ketchup does to your food- tasty and more

palatable.

Source : anonymous (2009) Encyclopaedia, http://www.absoluteastronomy.com/topics/Maggi

4 P’s of Marketing of Maggi Tomato Ketchup

1. PRODUCT :- ( 1Kg bottle)

a. Available in different variants: Maggi Ketchup Maggi Hot & Sweet Sauce, Maggi Masala Chilli

Sauce, Maggi Chilli Garlic Sauce, Maggi Tamarind Sauce, Maggi Tomato Sauce (Without onion

& garlic), Maggi Tomato Ketchup (With onion & garlic), tomato chatpat, Teekha masala,

Tomato pudina.

b. The product ingredients are water, tomato paste (34%), sugar, iodised salt, acidifying agent

(260), thickening agent (440 & 401), onion powder, garlic powder, mixed spices and

preservative (211).

2. PROMOTION :-

a. They promote their product very effectively through television by adding humour in the ads.

b. They also sponsor various cookery shows to promote alternate usage of products. Maggi was a

sponsor for Hum Log, a popular television show on Doordarshan, India’s sole channel in 1984.

c. They also use strategy of free product samples to promote it. They have distributed samples in

various mall and schools in Delhi.

d. Celebrity endorsements:- Maggi was They came up with their popular

character of Pankaj and Javed to communicate with target audience Nestlé

carried out various promotional activities as well. These included the August

1999 ‘Fun-Dooz’ campaign and Jungle Jackpot campaign .They have taken

Javed Jafferi for endorsement of tomato ketchup. They used a punch line that

is very effective and creates a unique image in the minds of the customers.

That is “its Different”. On completing its 25 years in India, Maggi has

changed slogan to “ Make a Difference”. And it’s now campaign slogan is

“Mai & maire maggi”.

3. PLACE :- Sold in India , New Zealand , Australia , Malaysia, Pakistan,

Nigeria, Philippines and Singapore.The distribution network is well spread as it is easily available in

all karyana stores, retail store etc.

4. PRICE :-

Its Maggi Rich Tomatoes is priced at Rs 90

(1 kg bottle with 20% free offer).

About Kissan Tomato Ketchup :-

Source : http://www.maggi.in/MAGGI_Sauces.aspx

4 P’s of marketing of Kissan Tomato Ketchup are :-

1. PRODUCT :- ( 1Kg bottle)

It is available in different variants: Kissan Ketchup and Kissan Sauce (no onion no garlic),

Kissan Tomchi.

The product ingredients are water, tomato paste , sugar, salt, acidity regulator

(260),Stabilizers (1442 & 415), condiments, onion powder, garlic powder, mixed spices and

preservative (211).

The thickness is more as compared to Maggi Ketchup. Due to the hidden quantity of the

tomato paste in the ingredient.

2. PROMOTION :-

a. No particular celebrity endorsement is used by the HUL ( Hindustan Unilever Limited ).

b. The new campaign of Kissan has positioned the Kissan Ketchup a unique product . Taking the tag line "Aao banaye pakode behtar" translated to "Making Pakode taste better". In these series of ads, the brand plays a second fiddle to the main snack. The brand takes the positioning of a "Great Accompaniment "

3. PLACE : -

Sold in India, U.S.A and Australia. The distribution network is well spread as it is easily

available in all karyana stores, retail store etc.

4. PRICE :-

Kissan Ketchup is priced at Rs 91 (1 kg bottle).

Source :- http://fliiby.com/images/_thumbs/me_jrtq2qc6al1.jpg

About Cremica Tomato Ketchup :

source: http://www.mrsbectorfoods.com/images/sauces_img.jpg

Established in 1978 as a small enterprise by Mrs. Bector, a housewife and passionate food

enthusiast, the Cremica Group is today a widely diversified food products company engaged in

food retailing and food services industry. Mrs Bector's Cremica, a 90 million dollar company, is

one of the largest players in food services business in India.

The Cremica Group includes Cremica Frozen Foods, EBI foods, Mrs Bector's Desserts and

Cremica Agro India. It serves as a one-stop solution provider to all leading food service chains,

food retail chains, hotel groups and airlines. Cremica's spread of delightful biscuits, breads,

sauces, bread spreads, ready-to-eat curries and syrups have something for everyone. Today, its

products are exported to 50 countries including Africa, the USA, UK and the Middle East.

Source : Asian News International ( 2009)

http://www.thefreelibrary.com/The+Cremica+group+making+waves+in+food+service+industry.(Company...-a0199265103

4 P’s of marketing of Cremica Tomato Ketchup :-

1. PRODUCT :- ( 1Kg bottle)

a. Its product line includes Tomato ketchup, chilli sauce, tomato ketchup sachets, chilli sauce

sachets, mustard sachet, mint dip sachets, pizza pasta sauce, salsa Mexicana sauce, chilli

garlic sauce.

b. The company has launched a new `concept product' which it calls a `tiffin ketchup sachet.'

This is a carton with 25 single serve sachets which the company hopes will do well in homes

with school-going children.

c. The product ingredients are water, tomato paste (34.5%), sugar, common salt, liquid glucose,

permitted acid (E 260), permitted emulsifier and stabiliser (E415), onion powder, garlic

powder, condiments.

2. PROMOTION :-

a. No particular celebrity endorsement is used by the Mrs. Bector for cremica tomato ketchup.

b. They promote their ketchup through hoardings, wall paintings and from various fast food

corners like McDonald’s, Pizza Hut, and Subway.

3. PLACE :-

a. The company is a major player in the institutional sales segment and supplies to

international chains such as McDonald's, Pizza Hut, Indian Railways, Jet Airways,

Kellogg's, Subway and to the Indian Army's Canteen Stores Department. The company

has a retail presence largely in the Northern market.

b. It is looking at an entry into smaller places such as Goa, Indore, Raipur, Jaipur, Agra,

Lucknow, Kochi, Coimbatore and Madurai.

c. It also makes products for the food divisions of major FMCG companies including a

chocolate topping for Kwality Wall's, the ice-cream brand of Hindustan Lever.

d. It has also partnered with Cadbury’s ITC and EBI Foods, a UK based firm. It has

customers like Cafi Coffee Day, Taj Group of Hotels, Spencer.

4. PRICE :-

The price of 1kg Cremica Tomato ketchup bottle for Rs. 89 for consumers.

Chapter 2.

REVIEW OF LITERATURE:-

The chapter included the information related to secondary data sourced from various published source like books , internet , journals etc. The review have been categorised into following heads :-

2.1 About consumer behaviour

2.2 Marketing mix review

2.3 Historical review about tomato ketchup

2.4 Studies conducted on Maggi , Kissan and Cremica brands of ketchup .

2.1 About consumer behaviour :-

Referring to Solomon (2006, p.27) consumer behaviour is the study of the processes involved

when individuals or groups select, purchase, use or dispose of products, services, idea or

experiences. Consumer behaviour focuses on how individuals make decisions to spend their

available resources on consumption related items. That includes what they buy, why they buy,

when they buy, where they buy it, how often they buy it how often they use it, how they

evaluate it after they purchase and the impact of such evaluations on future purchases, and

how they dispose it. Schiffman and Kanuk (2004, p.8)

2.1.1 Consumer attitude :-

According to Ajzen (1998) the attitudes are the first determinant of behaviour intention. In

consumer behaviour context attitude is a learned predisposition to behave in a consistently

favourable or unfavourable way with respect of a given object. There is a general agreement that

attitudes are learned. This means that attitudes relevant to purchase behaviour are formed as a

result of direct experience with the product, word-of-mouth information acquired from others, or

exposure to mass media advertising. Internet etc. (Schiffman and Kanuk, 2004, p.253) As

learned predisposition, attitudes may propel consumer towards particular behaviour or repel the

consumer away from particular behaviour. . (Schiffman and Kanuk,2004, p.253)

2.1.2 Consumer decision-making process :-

Many consumer theories regarding the consumer behaviour were based on economic theory on

the notion that individuals at rationally to maximize their benefits/satisfaction in the purchase of

goods and services. Later research discovered that consumers are just as likely to purchase

impulsively and to be influenced not only by family, friends, and advertisers but also by mood,

situation and emotion. All of these factors combine to form a comprehensive model of consumer

behaviour that reflects both the cognitive and emotional aspects of consumer decision-making.

(Schiffman and Kanuk, 2004, p.19)

In this simplified model (Figure 3.1) of consumer decision-making process Schiffman and

Kanuk (2004) identified three distinct but linked stages from which the process of consumer

decision-making can be viewed. It ties together the psychological, social and cultural concept

into easily understood framework.

2.2 Marketing Mix :-

The concept of the marketing mix as the combination of the major tools of marketing was first

developed by Borden in the 1950s. The idea of 4Ps (Product, Place, Price and Promotion) was

later formulated by McCarthy in 1975. The marketing mix creates an offering for the customer.

Marketers need to ensure that the marketing mix meets their customers’ needs and wants in

addition to that all of its components need to be consistent with each other. If not costumers will

turn away to its competitors. (Brassington, 2006 p.30)

Vignali (2001) acknowledges that for many years 4Ps have been used as the principal foundation

on which a marketing plan is based. However, with particular attention being paid to services

marketing in recent years, theorists have identified additional variables, which could be added to

the 4Ps. Fifield and Gilligan (1996, cited by Vignali 2001) recognized the following variables as

an integral part of the marketing mix- process, physical and people. Vignali (2001) applied 7Ps

analysing the marketing mix of McDonald’s in the following way:

1. Product – features, quality, quantity.

2. Place – location, number of outlets.

3. Price – strategy, determinants, levels.

4. Promotion – advertising, sales promotion, public relations.

5. People – quantity, quality, training, promotion.

6. Process – blueprinting, automation, control procedures.

7. Physical – cleanliness, decor, ambience of the service. In this project , the main focus is on the

4 P’s of marketing rather than 7 Ps. 4 Ps includes product, price , place and promotion .

2.3 Historical review :-

2.3.1 History of Tomato ketchup in India :-

Anonymous (2009) reviewed that the ketchup market in India is estimated to be around Rs 220

crore, largely dominated by Nestlé’s Maggi that owns 47% of the market and the Kissan that

owns 26%. Upto mid eighties Kissan was the number one brand in Tomato Ketchup and around

that time the competition came from Maggi -a Nestlé’s brand. With Maggi launching several

varieties of Tomato Ketchup there was a growth in the market. With Kissan and Maggi fighting

neck to neck other smaller but established brands like Dipy's from Herbertsons, Volfruit from

Voltas, Noga of Nagpur Orange Federation and SunSip of Wimco gradually disappeared from

the market. Delmonte now has joined hands with Paoma Industries, the manufacturers of Rasna

Brands of soft drink concentrate and is expected to launch Tomato Ketchup shortly. At a time

when Kissan had become generic to tomato sauce, Maggi came in with its sauces range. Maggi

was the upstate new corner who came in with a loud aggressive national burst. It did not come in

with one, but with a range of sauces in order to increase market share and expand the market by

offering more usage occasions, bring consumers with different needs into the Maggi Sauces fold

and weaning away users of different brands to Maggi. From a market share of 14% in 1985,

Maggi Sauces now enjoys a share of about 50% of the market.

2.4 Survey on tomato ketchups :-

Trivedi H (2008) conducted study on consumer buying decision making of ketchup. The study

was conducted Ahmadabad city. An in-house laboratory test on 15 brands of tomato sauce and

ketchup from across the country and 2 unbranded samples were conducted. Overall, Maggi

Ketchup (79) scored the highest among the national brands followed by Kissan Sauce (78)

and Heinz Ketchup (78). Among the regional brands, Madhur Premium Sauce and Ketchup

topped the list. It was found out that the `Best Buy’ tomato ketchup in the national category is

Nilon’s Sauce since its price was less than that of Maggi Ketchup. Similarly Madhur Ketchup is

the `Best Buy’ in the regional category. Two brands - Sona Continental and Tops Continental

were tested as a separate category because it had vegetables as ingredients, besides tomatoes.

Both the brands were found to be non-conforming, hence they were not rated and ranked.

2.4.1 A bout cremica :- (The Cremica group making waves in food service industry )

Karan Kapoor ( 2009) writes an article on Cremica Tomato ketchup. According to him Cremica

was established in 1978 as a small enterprise by Mrs. Bector, a housewife and passionate food

enthusiast, the Cremica Group is today a widely diversified food products company engaged in

food retailing and food services industry.

Mrs Bector’s Cremica, a 90 million dollar company, is one of the largest players in food services

business in India. The Cremica Group includes Cremica Frozen Foods, EBI Foods, Mrs Bector’s

Desserts and Cremica Agro India. It serves as a one-stop solution provider to all leading food

service chains, food retail chains, hotel groups and airlines.

Cremica’s spread of delightful biscuits, breads, sauces, bread spreads, ready-to-eat curries and

syrups have something for everyone.

Today, its products are exported to 50 countries including Africa, the USA, UK and the Middle

East. “Our sauces are going to Australia. We have recently launched a new range of chip-dips

and bread spread in the ethnic Indian range and these are going abroad to a number of countries.

We have had a highly successful launches of these products in Australia and the U.S. and we will

be further reinforcing a new strategy in these markets,” said Adshay Bector, Managing Director

of Mrs. Bector’s Food Specialities Ltd.

Since 1996, Cremica has been supplying buns, ketchups and toppings to McDonald’s – its key

business partner. It has also partnered with Cadbury’s ITC and EBI Foods, a UK based firm. It

has customers like Cafi Coffee Day, Taj Group of Hotels, Spencer and Barista as well.

2.4.2 Maggi ketchup completes 25 years in India & is still making a difference :-

According to Press Trust of India (2010) article nearly two decades after it first tickled the funny

bone with the It's Different punchline for Maggi sauces, FMCG major Nestle is changing the

slogan for its ketch up brand to Make a Difference, to stay in sync with the new generation of

customers. As Maggi tomato ketchup turns 25 this year in India, Nestle is adopting a more

interactive approach with customers through its new campaign, Hassi Khushi and Maggi Sauce,

which will see the ketchup range sport a new tagline, Make a Difference, starting from next

month.

As the brand grows they are looking for new ideas to communicate with consumers. Maggi is

also organising various campaigns in Delhi and NCRC area. This time they have thought of

letting the consumers do the talking.

2.4.3 Kissan Tomato ketchup :- F ar from a delight but still a necessity

Akisha (2004), expressed her views about Kissan tomato ketchup. According to her , Kissan

tomato ketchup is every type snack ketchup. One can have it with hot burger, pizza etc. Maggi’s

tomato ketchup is spicy where as Kissan tomto ketchup is tangy and mush thicker than Maggi

tomato ketchup.

2.4.4 Maggi : FROM 2-MINUTES TO 25 YEARS…

Ambika Sharma (2009) reviewed that the Nestle R&D Centre in Singapore is using their

technological know-how and knowledge of culinary art in India to develop an innovative product

that does not have any added preservatives and contains low levels of oil. In its endeavour to

make Maggi Tomato Ketchup affordable to many more families, Maggi also launched Maggi

Pichkoo, an easy to handle, squeezable pack of Maggi Ketchup priced at Rs.12. Today, Maggi

stands generic to its category. With continuous innovation and renovation of its product portfolio

based on strong consumer insights, Maggi has become an integral part of millions of Indians.

2.4.5 Is tomato ketchup is bad ?

According to Oprystar on 30th Jan , 2007, tomato ketchup is good . It has cancer fighting

elements called lycopene. This can also help fight against heart disease. The Cancer Research

Foundation of America has found that cooked tomatoes, like those used to make ketchup, has as

much as five times the amount of lycopene as fresh tomatoes.

Lycopene is a natural antioxidant that protects the heart by preventing the oxidation of LDL

cholesterol (bad) in your arteries. Lycopene does not lessen the amount of cholesterol, but keeps

it from causing damage.

CHAPTER 3. RESEARCH METHODOLOGY

Sr. No Research Methodology

1. Research Design Exploratory

2. Research tool Interview Schedule

3. Sample size 130 respondents ( 10 retailers + 120 customers)

4. Sampling Method Convenience random sampling method

5. Data collected from areas In Ludhiana ( Model Town, Sarabha Nagar and Malhar Road)

6. Final data analysis tools M.S Excel and MS Word

Research Design :-

Exploratory research design has been chosen for conducting this project. Exploratory

research helps in understanding the relationship between marketing mix and consumer

behaviour. It also helps in understanding the consumer behaviour for buying the particular

Brand’s tomato ketchup.

Research Tool :-

Interview schedule method has been used for retailers as well as customers. For this a

structured questionnaire has been prepared both for retailer and customers. For retailers

interview schedule is prepared keeping in mind the marketing mix concept and

environmental factors where as for customer’s interview schedule is prepared keeping in

mind consumer decision making has been the base.

Sample Size :-

Sample comprise of 130 respondents 1. Retailers :- 10 2. Customers :- 120

Sampling Method : -

Convenience random sampling method is used for selecting the sample. With the help of

convenience random sampling the respondents are randomly selected by the researcher from

the areas which are convenient for researcher.

Data Collection Plan :-

Data Gathering :-

This study involves data collection (primary research) from different areas of

Ludhiana i.e. Model Town, Sarabha Nagar and Malhar Road.

Pre-testing :- The pre-testing of the research tool has been conducted before the final data collection to

know reliability and validity of the research tool. For pre-testing, 1/10th of the non-

sampled respondents have been taken as sample.

Final data collection and analysis:-

Data have been analysed by using the appropriate statistical tools and techniques. The

data was coded and analysed with the MS excel application and also it were tabulated and

graphically presented with the help of MS word application.

Bibliography

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Anonymous (2009), Http://www.absoluteastronomy.com/topics/Maggi

Asian News International ( 2009)

http://www.thefreelibrary.com/The+Cremica+group+making+waves+in+food+service+in

dustry.(Company...-a0199265103

Trivedi Harshit (2008) food. Http://sawaal.ibibo.com/groceries/which-top-10-ketchup-brands- india-776538.html

Ankgol (2007) Kissan tomato ketchup. Http://www.reviewstream.com/reviews/?P=85640

Kapoor Karan ( 2009).The Cremica group making waves in food service industry. Http://buzz7.com/world/the-cremica-group-making-waves-in-food-service-industry.html

Press Trust of India(Apr 29, 2010).Maggi ketchup completes 25 years in India & is still making a difference. Http://www.financialexpress.com/news/Maggi-ketchup-completes-25-years-in-India-amp-is-still-making-a-difference/612612/

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A Correspondent, Mumbai (2005), HLL plans relaunch of its food brands , http://www.fnbnews.com/article/

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