MARKETING ASSIGNMENT ON FMCG PRODUCT- MAGGI NOODLES

BY GROUP 9KETAKI KUNTE ROLL NO. 26MANALI JADHAV ROLL NO. 22HARHSHARAN NAGRA ROLL NO. 32ROHIT ARORA ROLL NO. 40HIMANSHU GOSAIN ROLL NO. 20

INTRODUCTION • Maggi founded by Swiss entrepreneur Julius

maggi • Became pioneer by bringing protein rich and

vegetable meals in market• Maggi brand synonymous with taste and quality• International brand for soups, bouillons, cubes,

ketchups, sauces. Seasonings and instant noodles

• Launched in India in 1982• Market size of instant noodles is 2200 crores• Market share in India less than 70%• In India first instant noodle brand• Particularly well known in India, Pakistan,

Australia, Nigeria, New Zealand, Malaysia and Singapore

• Offers a wide variety of products in India

MARKET TRENDS

• A trend is a set or sequence of events that has some momentum and durability

• FMCG market treble US$11.6 billion in 2003 to US$33.4 in 2015• Maggi noodles penetration level 30% indicating untapped market

potential• Growth in Indian population an opportunity to branded product makers

to convert consumers to branded products• Growth fuelled by estimated 200 million people shift to processed and

packaged food• Rural marketing demands sachets in consumer goods• Instant noodles not treated as main meals• Increased health consciousness means growing demand for multigrains

and Atta noodles

PRODUCT LAUNCH

• Strategy carefully planned and scheduled with goal to make big happening and make big sales in short time

• Launched in India in 1982 • Faced rejection when changed formulation in mid

90’s• Returned to old formulation• India largest market for maggi 90%market share• After two decades maggi launching new products

PRODUCT LIFE CYCLE• CYCLE CONSISTING FOUR STAGE IntroductionA period of slow sales growth as product is launched in the market. Profits are non existent because of heavy expenses incurred with product introduction GrowthA period of rapid market acceptance and substantial profit improvements MaturityA period of slowdown in sales growth because the product has achieved acceptance by most potential buyers. Profit stabilise or decline because of increased competition DeclineThe period shows a downward drift and profit erode

4 P’S OF MARKETING

MAGGI PRODUCT MIX

• All the products offered by a company to its customers. • Product mix consists of a number of product lines. • Product mix of any company has four dimensions:

1. Width

2. Length

3. Depth

4. Consistency • Width: number of product lines a company offers• Length: total number of items in the product mix of a company. • Depth: the assortment of size, colour and models offered in each

item of the product line.• Consistency: the relationship of various product line- end use,

production, distribution channel etc.

PRODUCT MIX OF MAGGI

PRICING STRATEGY OF MAGGISince maggi is a FMCG product mainly consumed by youngsters and kids the company has kept the pricing optimum and affordable to all which can be explained as below:

VARIETY OF MAGGI NET WEIGHT PRICE OF THE PRODUCT (RS.)

1. Maggi Masala Noodles 70

150

300

450

560

10

20

40

60

77

2. Maggi Atta Noodles 80

320

21

78

3. Maggi Chicken Noodles 80

152

304

15

29

59

4. Maggi Cupamania 70 40

PROMOTION STRATEGY OF MAGGIThe various promotion techniques used by maggi are:

• Exchange offers

• Free gifts

• Use of print media

• Arranging competition on schools

• Organizing Maggi club for children

• Using big Bollywood entities to promote

the product

• Introduced new types of product.

• Followed a 360 degree marketing approach

DISTRIBUTION CHANNEL OF MAGGI NOODLES

Two major types of distribution are:

• Distributing target traditional trade which involves wholesalers and retailers.

• Distributing targeting modern rate which deals with the retail store chains ex-Big bazaar, Reliance Fresh,etc.

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. This can be done by using innovative tag lines.

TAG LINES USED BY MAGGI “TASTE BHI ,HEALTH BHI “

“BAS 2-MINUTES” (ONLY 2-MINUTES)

“GOOD FOOD ,GOOD LIFE “

“MUMMY , BHOOKH LAGI HAI “ (MOM I’M HUNGRY )

COMPETITORSTOP RAMEN SUNFEAST YIPPEE

NOODLES

KNOR NOODLES

SMITH & JONES

• CHING’S NOODLES

SWOT ANALYSIS OF MAGGI NOODLES

• STRENGTHS1. Market leader

2. Strong USP

3. Wide variety

4. Brand loyalty

5. Strong advertising strategy

6. Specialized in food industry

7. Backed by strong parent company

8. Strong distribution channel

9. Advantage of first mover in market

10. Matched with Indian needs

• WEAKNESES1. Perceived as unhealthy

2. Use of preservative of concern

3. Low rural market presence

4. Noodles not well accepted in India

5. Minor distribution problems

• OPPORTUNITIES1. Packaged and canned food

industry growing

2. High brand image

3. Increasing level of income and fast life

4. Increased affinity of Indians towards Chinese cuisine

• THREATS1. Presence of regional

competitors2. Pricing strategies of other

brands3. Less entry barriers in the

industry4. Lot of substitute products

available5. Presence of strong competitors

like ITC

SWOT ANALYSIS OF MAGGI NOODLES

LITERATURE REVIEW

ARUNACHAL WOMAN CONQUERS MOUNT EVEREST ON HALF-PLATE OF MAGGI NOODLES

THE TRUTH ABOUT MAGGI NOODLES-A BLOG BY REENA DARUWALLA

THE ADVENT OF THE ATTA NOODLE

CONSUMER SURVEY

OBJECTIVE:•To find out the behaviour of consumers in relation to various attributes.•To find out the general trends in market with respect to instant noodle market.•To find peoples approach towards maggi -a instant noodle brand.SAMPLE SIZEThe sample size taken into consideration while compiling and analysing the data to come to a conclusion is 50 respondentsAGE GROUPThe age group taken into consideration is between 20 years to 50 years.RESEARCH METHODOLOGY:We have used both Primary as well as Secondary methods to collect the respective data:But prominently primary data is used.In primary data questionnaire method of collective data is specifically used.For secondary data the sources used are quickmba.com, Wikipedia, Times of India, etc.

ANALYSIS OF SURVEY

56%

8%

14%

4%

8%10%

AGE GROUP20-25 25-30 30-35 35-40 40-45 45-50

50-100

100-150

150-200

ABOVE 200

NOT APPLIC

ABLETO

TAL

0

5

10

15

20

25

30

35

40

45

50

MONTHLY SPEND-ING

AMOUNT IN RS.

NO

. OF

PEO

PLE

TASTE

BRAND

PRICE

NO DIFFERENCE

NOT APPLICABLE

TOTAL

0 10 20 30 40 50 60

DIFFERNTIATING FACTOR

NO. OF PEOPLE

MULTIGRAIN NOODLES12%

ATTA NOODLES28%

REGULAR (MAIDA) NOODLES52%

CUPAMANIA4%

NA4%

VARIETY PREFERENCE

YES NO

MORE FLAVOURS REQUIRED? 33 17

2.5

7.5

12.5

17.5

22.5

27.5

32.5

MORE FLAVOURS REQUIRED?

NO

. OF

PEO

PLE

RATING FOR ATTRIBUTES

RATING 1

RATING FOR ATTRIBUTES

RATING 2

RATING FOR ATTRIBUTES

RATING 3

RATING FOR ATTRIBUTES

RATING 4

RATING FOR ATTRIBUTES

RATING 5

TASTE 3 1 5 23 16

AVAIL-ABILITY

0 1 2 12 33

PRICE 2 8 12 16 10

PACK-AGING

0 3 18 13 14

VARI-ETY

2 7 31 7 1

2.5

7.5

12.5

17.5

22.5

27.5

32.5

RATINGS (5 BEING HIGHEST)

NO

. OF

PEO

PLE

MASALA MAGGI60%

CHICKEN NOODLES

4%

TOMATO NOODLES

6%

ATTA NOODLES26%

NA4%

VARIANTS PREFERRED

EASY TO COOK

JUNK FOOD

GOOD TO HEALTH

TASTY/FUN EATING

0 5 10 15 20 25 30

30

9

2

9

PEOPLES OUTLOOK

NO. OF PEOPLE

YES NO

MOUTH PUBLICITY 46 4

2.5

7.5

12.5

17.5

22.5

27.5

32.5

37.5

42.5

47.5

MOUTH PUBLICITY

NO

. OF

PEO

PLE

YES

NO

0 5 10 15 20 25 30 35 40

HEALTH PERCEPTION

NO. OF PEOPLE

36

14

70%

30%

AWARENESS OF NEW VARIANT (OAT NOODLE)

YES NO

CONCLUSION There are some who lead and are called market leaders and there are

some who follow, called followers. Maggi has been a leader for decades and it is Maggi who educated Indian consumer about noodles.

People are shifting their liking from Regular variant to Atta noodles i.e the healthy variant introduced by maggi to sustain against stiff competition.

Of course, their market share might get depleted in course of time, by the entry of some very big players but Maggi will not sit silent. They will also reinforce their activities which will ultimately benefit the consumer.

The consumers have suggested to introduce a Masala Atta Noodle flavour which will also signify its “TASTE BHI HEALTH BHI” tag line.

People will definitely taste for a change, but it is very difficult to change ones taste bud and the top of mind game, as Maggi has become a generic name in India for their long presence…..

BIBLOGRAPHY

http://www.karteikarte.com/card/327646/difference-between-pr

oduct-range-mix-and-product-line

http://smallbusiness.chron.com/product-mix-639.html

http://slideshare.net/maggi

http://wikipedia.org

http://economictimes.indiatimes.com

http://maggi.in

http://noodles.blogspot.in

http://timesofindia.indiatimes.com

http://rajeshaithal.blog.in

http://euromonitor.com

http://nestleprofessional.com