Documente Academic
Documente Profesional
Documente Cultură
In 1991 we opened our country to foreign brands. As per this liberalization policy
many a foreign players ventured into our country finding it a lucrative large mass
market. India’s market potential lures foreign companies.
Many international companies that ventured in after 1991 are tallying their profits
and losses and wondering what the future holds for this market of 950 million
people.
But India is a diverse country where different states have different consumption
patterns and customs. Thus 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.
Through this project we have studied 4 P’s of marketing mix which includes
PRODUCT, PRICE, PLACE and PROMOTION for Maggi Tomato Ketchup.
We have also drawn out some inferences by applying various statistical tools like
‘SIGN TEST’.
The first Nestlé factory to begin production in the United States was opened in
Fulton, Oswego County, New York.
Nestlé India Ltd. (NIL), the Indian subsidiary of the global FMCG major, Nestlé SA,
introduced the Maggi brand in India in 1982, with its launch of Maggi 2 Minute
Noodles, an instant noodles product. Nestlé India’s business objective and that of its
management and employees is to manufacture and market the Company’s
products in such a way as to create value that can be sustained over the long term
for consumers, shareholders, employees, business partners and the national
economy.
The product mix of Nestle India consists of milk products and baby products
(42.5%), beverages (29.3 %), processed foods (14.4 %), chocolate and
confectionary (13.8 %). Nestle India plans to expand business into similar and
diversified product categories. The management wants to leverage all the hard
work done to establish a particular brand by extending the brand in some other
areas, where it sees an opportunity to make further money. In other words to derive
the maximum benefit from having established the brand Nestle did exactly, what it
wanted with one of their brands- Maggi.
In this project, our main focus was to analyze Tomato Ketchup taking into
consideration the 4 P’s of the marketing mix.
• To analyze various product attributes of Ketchups & Sauces and its management
in the current scenario.
• To study the entire distribution mix of the product line.
• Lastly our study will also focus on the various promotional aspect of the brand in
lieu of ketchup and also promotional mix of the product line.
All these objective were to analyze the performance of a particular product line of a
brand followed by the suggestions which we as a group have given in order to
improve their performance in the future and also learned various useful aspects
which they have devised and implemented that has bettered their performance.
The Company launched a new variant of Maggi Tomato Ketchup called “Pichkoo”.
Through our study we have determined the positive and negative product attributes
and thus determined the expectations of the product. This information can be used
by the company for further product modification. We also determined the
acceptability and adaptability towards introduction of new variants.
MAGGI
Over time the scope of MAGGI has been extended from a predominantly dehydrated
cooking aid brand towards a general savory food brand including many types of
ready meals and also frozen food. This is in line with the fact that people all over
the world are cooking less and less from scratch.
In 1863 Julius Maggi developed a formula for bring added taste to meals, which later
became lead to the beginning of Maggi and convenience food products.
MAGGI, known worldwide for innovation and quality worldwide, understands that
consumers are usually under great pressure in terms of time, budget, cooking skills
etc and therefore tries to establish a bond through giving ideas and advice that
make providing food easier. This results in the food provider being appreciated by
family and friends.
Maggi has faced lot of hurdles in its journey in India. The basic problem the brand
faced is the Indian Psyche. Indian Palate is not too adventurous in terms of trying
new tastes. That may be the reason why we are still stuck with Idli and Sambhar.
So a new product with a new taste that too from a different culture will have
difficulty in appealing to Indian market.
As of now, Maggi is the brand for 2-minute noodles, Chinese noodles, ketchups and
sauces for Nestle. As per the latest available data, sales of Maggi 2-minute noodle in
India are highest among all other Nestle products worldwide. Analysts say Nestle,
which faced one of the most challenging years in the FMCG industry in 2003, has
realised that unless it continuously innovates in an endeavour to provide value-for-
money to consumers, the company's bottomline may be impacted in the long run.
TOMATO KETCHUP
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 Maggie 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. The
biggest global player in Tomato Ketchup Heinz is still waiting and watching. It was
expected that they will launch Tomato Ketchup in Indian market soon. Some of the
unknown local brands of course still existing only on price competition.
The price competition has also kept some of the other categories of food products
still alive.
At a time when Kissan had become generic to tomato sauce, Maggi came in with its
sauces range. Maggi was the upstad newcorner 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.
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. It
was a very clever move, which paved way for subsequent variants such as
1. Tomato Chilli
2. Masala Chilli
3. Chilli Garlic
PRODUCT LINE
• Tomato Ketchup
• Teekha Masala
• Tomato Chatpat
• Tomato Pudina
MARKETING MIX
Marketing decisions generally fall into the following four controllable categories:
• Product
• Price
• Place (distribution)
• Promotion
The term "marketing mix" became popularized after Neil H. Borden published his
1964 article, The Concept of the Marketing Mix. Borden began using the term in his
teaching in the late 1940's after James Culliton had described the marketing
manager as a "mixer of ingredients". The ingredients in Borden's marketing mix
included product planning, pricing, branding, distribution channels, personal selling,
advertising, promotions, packaging, display, servicing, physical handling, and fact
finding and analysis. E. Jerome McCarthy later grouped these ingredients into the
four categories. These are the 4 P’s of Marketing Mix.
These four P's are the parameters that the marketing manager can control, subject
to the internal and external constraints of the marketing environment. The goal is to
make decisions that center the four P's on the customers in the target market in
order to create perceived value and generate a positive response.
Marketing decision variables are those variables under the firm's control that can
affect the level of demand for the firm's products. They are distinguished from
environmental and competitive action variables that are not totally and directly
under the firm's control. It is a great way to help us focus on the elements of a good
marketing plan that we can't control but must be aware of and anticipate such as:
- new competitors,
- new legislation,
Price variables
• Discount structure
Product variables
• Quality
• Packaging
• Brands
• Service
Promotion variables
• Advertising
• Sales promotion
• Personal selling
• Publicity
Place variables
• Channels of distribution
• Outlet location
• Sales territories
• Warehousing system
MAGGI KISSAN
PRODUCT
• 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.
PRODUCT
• It is available in different variants: Kissan Ketchup and Kissan Sauce (no onion no
garlic), Kissan Tomchi.
PROMOTION
• They also sponsor various cookery shows to promote alternate usage of products.
• The utter confusion regarding the long-term strategy for Kissan brand was visible
through the experiments that were conducted on this brand by Hll.
• But with a brand which had a tremendous equity during the late nineties and early
2000, HUL had weird plans. One of the major casualties of MS Banga's Power brand
strategy was Kissan. During the early 2000, the brand Kissan was rebranded as
Kissan Annapurna. Kissan Annapurna was marketing not jams and squashes by
Atta, salt and other staple foods. Later Annapurna and Kissan was splited into two
separate brands , one concentrating on staple foods and other on processed foods.
This migration strategy proved to be very costly for both Kissan and Annapurna
brand.
Kissan was synonymous with Jams and Squashes during its initial years. Kissan
Ketchup was a market leader in ketchup segment but these experiments and
myopic strategies pushed the brand behind the focused and aggressive Maggi.
So all through the period 2001-2005, Kissan was in a sticky wicket. But now
according to reports, the brand mandarins of HUL is now clear about Kissan as a
brand for processed food like Jams , ketchups and like.
That change is visible in the recent campaign of Kissan which takes a unique view of
Ketchup. Taking the tagline " 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 "
PLACE
• The distribution network is well spread as it is easily available in all kirana stores,
retail store etc.
PLACE
• The distribution network is well spread as it is easily available in all kirana stores,
retail store etc.
PRICE
• Its Maggi Rich Tomatoes is priced at Rs 90 (1 kg bottle with 20% free offer) and Rs
26 (200 gm bottle). PRICE
• Its Kissan Ketchup and Kissan Sauce (no onion no garlic) are priced at Rs 91 (1 kg
bottle), Rs 49 (500 gm bottle) and Rs 60 (600 gm squeezy pack), while Kissan
Tomchi is priced at Rs 53 (500 gm).
1. Core benefit
The “Core benefit” which Maggie provides is its instant recipe and a tag line which
assures that it is “FAST TO COOK & GOOD TO EAT”.
The “Basic product benefit” which our product provides to our target market is a
good taste with proper nutrition levels and good health, as one of its punch line
says “Taste Bhi Health Bhi”.
The “Expected product benefit” which Maggi provides is a proper and a good
package which is vacuum zed which ensures customers a good quality, fully packed
seasoning tastemaker & affordable prices.
PRODUCT DIFFERENTIATION
Product differentiation strategy means how a particular product is different from
others on the basis of:
1. Form
2. Features
3. Performance quality
4. Convenience
5. Durability
6. Reliability
7. Style
According to our product, the form shape, size, physical structure of Maggi is very
attractive as it is easy to carry, comes in various packs and sizes according to
customers convenience. For example “Maggi Pichkoo ketchup” packs which is a
smaller quantity consumption variant.
The various features of Maggi Tomato Ketchup are first of all its perfect taste
according to the Indian touch & spices, its pocketabililty factor, packaging, easily
transformation of recipe according to the different tastes of consumers, an ideal
preparation recipe at the back of its pack & above all its competitive prices.
As according to our survey report we found out the performance level of Maggi
Tomato Ketchup was excellent there were various other brands offered to our target
market, but Maggi prevailed as the winner out of them because of its various
factors (taste, less consumption of time in preparation, prices, pack etc.)
Maggi products are durable as due to its preparation these products are easy to
store, have a long shelf life and can be stored at any given temperatures which is
tested and approved.
Reliability is also one of Maggi’s strength, as one can always rely on a Maggie
product for a particular taste which it guaranties that is no matter which pack you
are buying you would be provided with the same taste, aroma & seasoning.
It is an Indian customer’s psyche that “whatever looks good and feels good would
be of good quality” so Maggi packs had been designed keeping in mind the same
concept, its promotional schemes, color of the packages and the pictures depicted
on the pack appeals to the customers.
Maggi leveraged the brand equity very effectively. The product quality was good
and the communication was excellent. The brand was positioned as a "Different"
sauce with the baseline "It’s different".
Customers were intrigued as to what is different about the brand and was curious to
try the sauce. The ads featuring Javed and Pankaj kapoor was superb and funny. It
was created by JWT. The new campaigns are handled by Publicis and the baseline
has been changed to "Enjoy the Difference".
In this case even though the new baseline "Enjoy the Difference" was not very
different from the old one.
We strongly feel that the brand managers should take the ownership of the brand
and the way it is communicated. If it is left to agency alone, every time the agency
changes, the communication changes.
The Consumer Magazine has published its in-house laboratory test findings on 15
brands of tomato sauce and ketchup from across the country and 2 unbranded
samples from Ahmedabad.
Overall, Maggi Ketchup (79) scored the highest among the national brands followed
by Kissan Sauce (78) and Heinz Ketchup (78).
OUTCOME CONSTRAINTS
Ingredients Cost
Processes Quality
Additives Safety
Patent Legal
……
Recruiting Strategy
Training Quality
R&D Know-how
… Knowledge …
Creativity
Competition
Academic
Inventors
Suppliers
RESEARCH METHODOLOGY
The present study constitutes the comparison of the 4 Ps of the Maggi of Nestle
India Ltd. and Kissan of Hindustan Unilever Ltd.
This will be done from the secondary data collected from the websites and the food
consultants.
We have established some hypothesis and some inferences on the basis of the
primary data collected.
1. SURVEY METHODS
We asked the customers to rank the various attributes on a scale of very important,
important and not very important. To find-out the brand perception of various
brands, paired comparison between them is used.
2. QUESTIONNAIRE DESIGN
1. Name: …………………………………………………………………………………………..
2. Occupation: ………………………………………………………………………………….
4. Location: ……………………………………………………………………………………….
5. Age:
6. Family type:
Joint Nuclear
Yes No
Maggi
Kissan
Heinz
Cremica
Other ....………………………………………………………………………………….
Yes No
10. If no , it is because :
Lack of awareness
Lack of availability
Others …………………………………………………………………………………….
Newspaper advertisements
Radio
T.V. advertisements
Word of mouth
Point of sale
Other source……………………………………………………………………………..
12. Do you remember any of the T.V. advertisements of Maggi Tomato Ketchup?
Yes No
13. Does celebrity endorsement prompt you to purchase Maggi Tomato Ketchup?
Yes No
14. Have you tried new variants of Maggi Tomato Ketchup after viewing the
advertisements?
Yes No
15. What is the level of discounts /offers available with Maggi Tomato Ketchup?
16. Which of the offers available influence you the most to purchase Maggi Tomato
Ketchup?
Discounts offer
Combo packs
Other ………………………………………………………………………………………
Yes No
Nearby store
Retail store
Whole seller
Tomato Ketchup
Teekha Masala
Tomato Chatpat
Tomato Pudina
Pichkoo Pack
200 g
600 g
1kg
21. How frequently you purchase Maggi Tomato Ketchup?
Every week
Every month
Occasionally
Taste
Color
Thickness
………………………………………………………………………………………………….
3. SAMPLING DESIGN
The sampling frame is defined in terms of who the respondents are can answer the
questions that need to be addressed. First we defined our target population as the
people who are involved in the purchase of house hold items. Then we used random
sampling in conducting the survey.
Our survey is limited to the Delhi NCR region. Responses were collected form Noida,
Greater Noida, South Delhi, Faridabad.
5. SAMPLE SIZE
While planning the survey we estimated the sample size of 150 respondents. We
have surveyed 130 people who lie within our target population. The survey consists
of more number of females (more than 60% of the total sample size). Most of the
respondents are from the middle and upper middle class.
The data collected via survey was entered into the excel sheet. The results were
tabulated and analyzed. According to the analysis relevant inferences has been
made related to each question.
Based on the question no. 22 of the questionnaire, a hypothesis was analyzed. The
hypothesis is that the color and the thickness of tomato ketchup are equally
important to the respondents of the survey conducted. Using sign test this null
hypothesis has been rejected and the alternate hypothesis has been accepted.
DATA ANALYSIS
NEWS PAPER 14
RADIO 3
T.V. AD 97
WORD OF MOUTH 23
POS 15
OTHER 5
INFERENCE:
This graph reveals that T.V. Advertisements are the major source of information
regarding Maggi Tomato Ketchup and so we can also infer that they have been
successful in their promotion strategies involving electronic media.
2. REMEMBER ANY TV AD
YES 113
NO 16
INFERENCE:
This graph facilitates us in realising that majority of the people are aware of the
brand Maggi as they remember TV ads so it can be inferred that Maggi’s
promotional team has far been successful in positioning its Tomato Ketchup in the
mind of the people.
YES 39
NO 89
INFERENCE:
This graph infers that Celebrity Endorsements does not influence the buying
decision of majority consumers. It also infers that reference group does not make
any impact on consumer mind when we talk about Maggi Tomato Ketchup.
4. LEVEL OF DISCOUNT OFFER
2 64 57 5
INFERENCE:
This pie-chart reveals that Maggi Tomato Ketchup is positioned in the mind of the
consumer and also its various discount offers to major extent.
NEAR BY STORE 78
RETAIL STORE 51
OTHER 7
INFERENCE:
SIZE NO OF RESPONDENTS
PICHKOO 6
200g 39
600g 28
1Kg 59
INFERENCE:
This graph figures out that the larger sized bottle of Maggi Tomato Ketchup is
largely demanded even in the presence of smaller sized bottles and even the new
Pichkoo.
EVERY WEEK 11
EVRY FORTNIGHT 7
EVERY MONTH 63
OCCASIONALLY 44
INFERENCE:
This graph depicts that the frequency of buying every month of Maggi Tomato
Ketchup is maximum.
FLAVOURS NO OF RESPONDENTS
Tomato Ketchup 67
THEEKHA MASALA 5
Tomato Chatpat 10
Tomato Pudina 7
INFERENCE:
This graph shows that the original flavour of Maggi Tomato Ketchup is still the
leader in terms of popularity and Hot & Sweet is slowly catching up with it. Its new
variants and flavour have also been noticed and have started making in-roads for
themselves.
9. CHOICE OF OFFERS
DISCOUNTS 32
BOGO 47
COMBO 32
OTHERS 12
UNAWARE 8
INFERENCE:
This graph infers that “Buy One Get One Free” offer of Maggi Tomato Ketchup is the
first choice among the consumers. This shows that consumers are price sensitive
too and they prefer buying when there are offers running around.
TASTE 124 4 0
SOLOCCCR 37 71 20
THICKNESS 67 53 8
COLOR 37 71 20
INFERENCE:
This graph depicts our analysis of the importance of the various product attributes
like taste, color and thickness in the eye of people. We can very well observe in the
graph that Taste, undoubtedly, is the most important attribute that people prefer
more over any other while selecting a brand. Moderate importance is given color
attribute and thickness also derives its importance somewhere between moderate
to very.
HYPOTHESIS TESTING
OBJECTIVE: to find what is more important between color and thickness of tomato
ketchup among the respondents.
METHOD:
S. NO. RESPONDENTS VIEW FOR COLOR RESPONDENTS VIEW FOR THICKNESS SIGN
1211
2211
3321
4312
5211
6211
7211
8211
9 1 3 -2
10 2 1 1
11 2 1 1
12 2 1 1
13 2 1 1
14 3 2 1
15 2 1 1
16 2 1 1
17 2 1 1
18 3 1 2
19 2 1 1
20 3 2 1
21 3 1 2
22 1 2 -1
23 1 2 -1
24 2 1 1
25 2 1 1
26 1 2 -1
27 3 1 2
28 1 2 -1
29 2 3 -1
30 3 1 2
31 2 1 1
32 2 1 1
33 2 1 1
34 2 1 1
35 2 1 1
36 2 1 1
37 3 2 1
38 1 2 -1
39 2 1 1
40 2 3 -1
41 3 2 1
42 2 1 1
43 3 2 1
44 3 2 1
45 3 2 1
46 3 2 1
47 2 3 -1
48 2 3 -1
49 2 1 1
50 3 1 2
51 1 2 -1
52 2 1 1
53 3 2 1
54 3 1 2
2. NO OF POSITIVE SIGN= 43
NO OF NEGATIVE SIGN=11
(In this sample size we have ignored the respondents who have given the equal
importance to
(There is no difference between the importance level of color and thickness for
tomato ketchup)
(The level of importance of color is less than thickness for tomato ketchup)
5. APPLYING SIGN TEST: So,
pH(0)= 0.5
qH(0)= 0.5
n= 54
p= 0.79
q= 0.21
6. Z (test) = 4.264
Z (critical) = 1.96
Since the Z (test) is greater than Z(critical), we reject the null hypothesis that the
importance of color and taste for tomato ketchup is same.
Therefore, we accept the alternate hypothesis that is the importance of color is less
than thickness among the respondents for tomato ketchup.
The data collected from the survey clearly shows that taste is the most important
factor while purchasing the tomato ketchup.
The above analysis tells that thickness of tomato ketchup is the second most
important attribute for the respondents after taste. Maggi is the leader in the
ketchup industry and known for its better taste and varieties. Maggi should work
towards the thickness of its tomato ketchup.
RECOMMENDATIONS
PRODUCT
• Company should work on taste also. According to the data collected people prefer
the taste of Kissan.
PLACE
• Most of the people buy Maggi Ketchup from local kirana stores. But organized
sector is booming and according to our survey 38% people buy Maggi Ketchup from
Retail Stores. Hence they should increase the visibility of the product in Retail
Stores and hence effective distribution network.
PROMOTION
• According to the data collected it is recorded that the level of discounts offered is
low. Hence company should try to provide more discounts on the product. ‘Buy One
Get One Free’ is the most preferred promotional offer.
• The frequency of TV advertisements has decreased. They should try to come out
with more innovative advertisement to catch the attention of the customers.
• They should promote there new product ‘PICHKOO’ as people are less aware of
this new size. It could increase the market share tremendously as it is very
convenient to carry.
PRICE
LIMITATIONS
1. SAMPLING ERROR:
The sample of our survey is confined to the respondents from the middle class and
the upper middle class.
The sample size of 130 is not the true representative of our sampling frame and
result in skewed responses.
The locations under taken for the survey is also a constrain because the result of
the survey is limited to some regions and cannot be used for further analysis and
implementation.
2. RESPONSE ERRORS:
These errors arise when the respondents give inaccurate or incomplete answers. A
major problem is faced in the survey involved the comparative ratings of various
attributes for tomato ketchup. Many of the respondents were not very willing to
mark
All the questions in the questionnaire were closed-ended to avoid any confusion
from the respondents end. But a drawback of this approach is that there was some
biasness in capturing the responses of the respondents. The reasons for such
inaccuracy could be because of unfamiliarity, boredom, faulty recall and the
question format.
4. RECORDING ERROR:
This type of error arise dues to errors in hearing, interpreting, and recording the
answers given by the respondents. For example, a respondent indicates a moderate
response for the attributes of the tomato ketchup, but the interviewer misinterprets
that to a positive response.
These errors occur while raw data from questionnaire are transformed into research
findings. For example, if the outliers are not filtered from the data during the
statistical procedure, result in incorrect interpretation and findings.