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PRODUCT MODIFICATION

INDEX

TABLES OF CONTENTS
CHAPTER CONTENTS LIST OF TABLES LIST OF GRAPHS PAGE NO II III

CHAPTER -1 INTRODUCTION Introduction about the topic 1

THE STUDY DESIGN Importance and need for The study Objectives of the study CHAPTER -2 Sampling Statistical technique Limitations of the study 3 4 7 7 8

PROFILE OF THE COMPANY Company Profile CHAPTER -3 Company History Company Developments Company achievements Company Present position Company structure CHAPTER-4 ANALYSIS AND DATA INTERPRETATION 43 48 65 68 69 10 18 40 42

CHAPTER-5 SUMMARY,FINDINGS AND SUGGESSTIONS BIBILOGRAPHY ANNEXURE

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LIST OF TABLES
TABLENO CONTENTS
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

PAGENO
54 55 56 57 58 59 60 61 62 63 64 65 66 67

Customers remembrance towards maggi brand when they think about noodles industry Customer awareness towards maggi

Source of awareness towards maggi

Why customers choosing maggi

Customers opinion on Taste

Customers likeness towards maggi

Customers opinion on Package change of maggi

Customers satisfaction on price of maggi

Customer opinion on price change of maggi

Customers opinion on colour change of maggi noodles

Customer satisfaction on flavor ,taste of masala of magi

Customers feeling on information given on maggi package

Customers rating on quality of maggi

Customers requirement on promotional activities of maggi Over all rating towards Maggi

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LIST OF GRAPHS
TABLEON
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 CONTENTS

PAGENO
54 55 56 57 58 59 60 61 62 63 64 65 66 67

Customers remembrance towards maggi brand when they think about noodles industry Customer awareness towards maggi

Source of awareness towards maggi

Why customers choosing maggi

Customers opinion on Taste

Customers likeness towards maggi

Customers opinion on Package change of maggi

Customers satisfaction on price of maggi

Customer opinion on price change of maggi

Customers opinion on colour change of maggi noodles

Customer satisfaction on flavor ,taste of masala of magi

Customers feeling on information given on maggi package

Customers rating on quality of maggi

Customers requirement on promotional activities of maggi Over all rating towards Maggi

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CHAPTER-1 INTRODUCTION

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MAAGI NOODLES PRODUCT MODIFICATION AND BRAND MANAGEMENT

INTRODUCTION
Maggi is the leader in the Instant Noodles category because it is constantly improving its understanding of the consumer to give them excellent and tasty products that provide nutrition, health, and wellness." --- Martial Rolland, chairman and managing director, Nestl India Ltd., Maggi has managed to enter Indian homes to change the traditional food habits of Indian children on their promise of convenience. This brand has understood the psychology of Indian mothers and positioned itself for mother-child indulgence." - Business Week, a prominent business magazine

Nestl India Ltd. (NIL), a major FMCG company in the country and a subsidiary of the Switzerland-based Nestl Group, launched a new instant noodles product called Maggi Dal Atta Noodles (Dal Atta Noodles) under the popular Maggi brand (Refer to Exhibit I for a brief profile of NIL). The Dal Atta Noodles were made of whole wheat and contained pulses, and positioned as a 'healthy instant noodles product that provided 20 percent of the daily RDA of dietary fiber and protein for a child aged between 7 and 9. This was the latest addition to the range of 'healthy' products NIL had been launching over the early 2000s. NIL offered a variety of culinary products such as instant noodles, soups, sauces and ketchups, cooking aids (seasonings), etc., under the Maggi brand (Refer to Exhibit II for Maggi's product portfolio as of mid-2006). Of these, instant noodles had been NIL's main product category in the culinary segment since the launch of Maggi 2 Minute Noodles (Maggi noodles) in 1982. Over the years, Maggi noodles became a popular snack food product in India.

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During the 1990s, the sales of Maggi noodles declined, and this was attributed partly to the growing popularity of Top Ramen, another instant noodles product. In order to improve sales and attract more consumers, NIL changed the formulation of Maggi noodles in 1997. However, this proved to be a mistake, as consumers did not like the taste of the new noodles. In March 1999, NIL reintroduced the old formulation of the noodles, after which the sales revived. Over the years, NIL also introduced several other products like soups and cooking aids under the Maggi brand. However, these products were not as successful as the instant noodles. In the early 2000s, Maggi was the leader in the branded instant noodles segment, and the company faced little serious competition in this segment. In the early 2000s, NIL started introducing new 'healthy' products in accordance with the Nestl Group's global strategy to transform itself into a health and wellness company.

NIL also adopted the same strategy for the Maggi brand with the launch of the Maggi Vegetable Atta Noodles (Vegetable Atta Noodles), a 'healthy' instant noodles product made of whole wheat flour and vegetables (instead of refined flour), in 2005. The Dal Atta Noodles were another variant of Maggi's healthy instant noodles. proved to be a mistake, as consumers did not like the taste of the new noodles. In March 1999, NIL reintroduced the old formulation of the noodles, after which the sales revived.

Over the years, NIL also introduced several other products like soups and cooking aids under the Maggi brand. However, these products were not as successful as the instant noodles. In the early 2000s, Maggi was the leader in the branded instant noodles segment, and the company faced little serious competition in this segment.

In the early 2000s, NIL started introducing new 'healthy' products in accordance with the Nestl Group's global strategy to transform itself into a health and wellness company. NIL also adopted the same strategy for the Maggi brand with the launch of the Maggi Vegetable Atta Noodles (Vegetable Atta Noodles), a 'healthy' instant noodles product made of whole wheat flour and vegetables (instead of refined flour), in 2005. The Dal Atta Noodles were another variant of Maggi's healthy instant noodles.

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MAGGI BRAND
Maggi noodles is a brand of instant noodles manufactured by Nestl. The brand is popular in Australia, India, South Africa, Brazil, Nepal, New Zealand, Sri Brunei, Lanka, Malaysia, Singapore,

Bangladesh, Pakistan, and the Philippines. In several countries, it is also known as "maggi mee" (mee is Indonesian/Malay for noodles). Maggi noodles are part of the Maggi family, a Nestl brand of instant soups, stocks, and noodles. In Malaysia, there are fried noodles made from maggi noodles known as Maggi goreng. Maggi noodles recently introduced a new variety of its noodles, to cater for the health conscious like 'No MSG', 'Less Salt', and 'No Trans fat'. A wholewheat flour based noodle variation marketed by the name "Vegetable Atta Noodles" has been introduced in India (Atta flour is used in preparing most forms of wheat based breads in India) and caters to health conscious buyers wary of the refined flour used in the regular Maggi noodles. This move helps the brand in India as suburban mothers, who feed the noodles to children as an after school snack, are the primary customers of the brand. Recently, a line of rice noodles and whole wheat with pulses, carrots, beans, and onions has also been introduced in India. In fact, "Maggi" has become a wellknown brand for instant noodles in India and Malaysia. Nestl India Ltd (NIL) offered a variety of culinary products such as instant noodles, soups, sauces and ketchups, cooking aids (seasonings), etc., Of these, instant noodles had been NIL's main product category in the culinary segment since the launch of Maggi 2 Minute Noodles (Maggi noodles) in 1982. Over the years, Maggi noodles became a popular snack food product in India. In mid 2008, New Zealand supermarkets introduced replacement formulations for its Beef, Oriental, and Curry flavours. A new feature is an extra sachet containing dehydrated vegetables. Maggi claims the new range contains 88% less total fat and 86% less saturated fat than the average of top-three (unnamed) 2-minute-noodle competitors. The new Maggi range also has considerably lower fat than its own previous formulation. However, the salt content

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has been increased by 31 percent. Consumers have not reacted well to the new formulations, complaining that they want the original chicken flavor back. Maggi noodles also contain the additives E150d and E627. E150d is sometimes made from maize. Claimed to be "2 minute noodles", The Maggi noodle cake and seasoning is added into boiling water for two minutes and it is ready for consumption. Egg, seaweed, boiled vegetables or lemon can also be added to the noodles for a better flavor. Maggi Noodles are available in a large assortment of different flavours. They are:

Original Flavor Chicken Curry (a healthier alternative is also sold in supermarkets) Kari Letup (Extremely Spicy Curry) in Malaysia Chicken & Corn Beef Oriental Masala Prawn Dal Sambar (whole wheat noodles) Dal Atta noodles Asam Laksa Cheese Pizza (only in Saudi Arabia and South Africa, was available for a period of time in Australia) Sup Tulang (bone soup) (in Malaysia) Chatpata Tomato Stronger Chicken Crispy Chicken Vegetable Atta Noodles (whole wheat noodles) Shahi Pulao (rice noodles) Chilly Chow (rice noodles) Lemon Masala (rice noodles) Boerewors (in South Africa) 5
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Maggi noodles also produces instant noodles known as "Hot Bowl" noodles named "Cuppa Mania" in India. New drinkable Maggi noodle soups are also available. Background A Maggi noodle is a brand of instant noodles manufactured by Nestle. The brand is popular in India, South Africa, Brazil, Nepal, New Zealand, Australia, Malaysia, Singapore, Sri Lanka, Bangladesh, Pakistan, and the Philippines. In several countries, it is also known as "maggi mee" Indonesian call it mee but in Malaysia people call it as noodle. Maggi noodles are part of the Maggi family, a Nestle brand of instant soups, stocks, and noodles.

In Malaysia, there are fried noodles made from maggi noodles known as Maggi goreng. Maggi noodles recently introduced a new variety of its noodles, to cater for the health conscious like 'No MSG', 'Less Salt', and 'No Trans fat'. Wholewheat flour based noodle variation marketed by the name "Vegetable Atta Noodles" has been introduced in India. Atta flour is used in preparing most forms of wheat based breads in India and caters to health conscious buyers wary of the refined flour used in the regular Maggi noodles. This

MAGGI NOODLES IN INDIA


Maggi Comes to India teething troubles Maggi noodles was launched in India in the early1980s. Carlo M. Donati, the present Chairman and Managing Director of Nestle India Ltd, brought the instant noodle brand to India during his short stint here in the early eighties. At that time, there was no direct competition. The first competition came from the ready-toeat snack segment which included snacks like samosas, biscuits or maybe peanuts, that were usually the bought out type. The second competition came from the homemade snacks like pakoras or sandwiches. So there were no specific buy and make snack! Moreover both competitors had certain drawbacks in comparison. Snacks like samosas are usually bought out, and outside food is generally considered unhygienic and unhealthy. The other competitor, homemade snacks overcame both these problems but had the disadvantage of extended preparation time at home. Maggi was positioned as the only hygienic home made snack! Despite this, Nestl faced difficulties with their sales after the initial phase. The reason being, the positioning of the product with the wrong target group. Nestle had positioned Maggi as a convenience food product aimed at the target group of working women who

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hardly found any time for cooking. Unfortunately this could not hold the product for very long. In the course of many market researches and surveys, the firm found that children were the biggest consumers of Maggi noodles. Quickly they repositioned it towards the kids segment with various tools of sales promotion like colour pencils, sketch pens, fun books, Maggi clubs which worked wonders for the brand.

CONCEPTS AND SIGNIFICANCE Developing Product Strategies


On the basis of the companys products have to be developed so that it focuses on only those customers whom it is going to target. These strategies can be as follows: Time-to-market Low Product Cost Low Development Cost Product performance, Technology & innovation Quality, Reliability, Robustness Service, Responsiveness & Flexibility Time-to-market: -This is typical of companies involved with rapidly changing technology or products with rapidly changing fashion. Pursuit of this strategy will typically will lead to tradeoffs in optimizing product performance, cost and reliability. Low Product Cost: -This orientation typically will require additional time and development cost to optimize product cost and the manufacturing process. Low Development Cost: -While this orientation is not as common as the other orientations, it occurs when companies are developing products under contract for other parties, where a company has severely constrained financial resources, or where a "stealth" development effort is being undertaken on a "shoestring". Product Performance, Technology & Innovation: -This orientation focuses on having the highest level of product performance, the highest level of functionality or

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functions and features, the latest technology or the highest level of product innovation. Quality, Reliability, Robustness: -This orientation is typical of industries requiring high quality because of the significant costs to correct a problem (e.g., recalls in the automotive or food processing industries), the need for high levels of reliability (e.g., aerospace products), or where there are significant safety issues (e.g., medical devices, pharmaceuticals, commercial aircraft, nuclear plants, etc.). Service, Responsiveness & Flexibility: -This orientation requires additional resources (and their related costs) to provide this service and responsiveness.

Product Development
Developing a new product is a major task which considers various factors. In other words, the aim of product development is : Production of goods to meet market demand Adjusting with the variation in quantity required Right pricing of the products. Categories of Product Development: Introduction of new products Improvement of existing products

Stages of Product Development


Find Consumer Desire Analysing Feasibility Design Selection of Process and Production systems Process Development

"Maggi has managed to enter Indian homes to change the traditional food habits of Indian children on their promise of convenience. This brand has understood the psychology of Indian mothers and positioned itself for mother-child indulgence." - Business Week, a prominent business magazine

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Importance of the Product In this project I have survey the product extension and modification of Maagi Noodels Nestle, which are consumed by people of all ages. During this project I have interacted with people of Adoni Town. After this project I came to know how people perceives these products on the variables like age, income levels, price, quality, advertisement, satisfaction, taste, packaging, brand loyalty etc. I also came to know which particular brand of Maggi Noodels is most preferred by people of different age groups. In this project I have surveyed that how frequently and how much maagi noodles they consume, whether they buy small, big or family pack. Trend of ongoing changes in their likings has been shown in the report. In this report I have tried to explain the entire project and facts product wise. This move helps the brand in these areas of suburban mothers who feed the noodles to children as an after school snack only. From now to onward the primary customers of the brand are exactly these mothers too. Recently, a line of rice noodles and whole wheat with pulses, carrots, beans, and onions has also been introduced in India. In fact, "Maggi" has become a well-known brand for instant noodles in India. It just takes few minutes to prepare the dish. They also provide taste maker along with the noodles. This is very handy for all moms and most of the children would love to eat Maggi noodles. All we need to do is boil water and add noodles to it and keep it for few minutes. Then in a vessel fry taster maker, vegetables like beans, carrot, onion but vegetables are optional just to add taste and add noodles. Its a ready to serve. Both vegetarian and chicken noodles are available in the market. Really its a fun food which is easy for both moms and kids to prepare. The Tag lines of brand is as: First one, Mummy bhook lagi hai, then Bas 2 minute, then third one was as Fast to cook & Good to eat, and finally Health bhi, Taste bhi. These are famous among kids. The brand is positioned as a health product. Target market was initially only kids but now-a-days everyone due to fast moving lifestyle. In marketing

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strategy company is using 360 degree marketing technique. In its branding campaign company is promoting brand by sponsoring many kids events. Also it is spending huge amount on electronic and print media advertising. It can be seen easily that consumers have an emotional bond with the product. On several occasions company does aggressive marketing by providing free samples of the product. Brandinfocus:MaggiNoodles The most popular brand in the countries is Nestl's Maggi, which is regarded in popular culture as a twominute noodle. Other popular brands include Top Ramen Smoodles and Cup Noodles manufactured by Indo-Nissin Ltd, Ching's Instant Noodles, AA Nutritions's Yummy, and Wai-Wai, owned by the Chaudhary Group from Nepal and India. Smith & Jones and Ching's secrets are also popular new brands of instant noodles in India. Wai Wai is gaining momentum and is dominating market in North Eastern states, Sikkim and west Bengal. Its unique taste and snack like feature is making it popular in other parts of India as well. Local flavors such as masala and chicken tikka dominate. The most popular flavor of Top Ramen is known as "Curry Smoodles"; its flavorings mimic a basic curry, including onion, garlic, coriander, and a curry masala. A package sells for 1012 rupees in India. In India, there is also great demand for unflavored instant noodles; brands such as Bambino and Ching's dominate the market. Because of increasing health consciousness, Nestle introduced an instant noodle based on whole wheat grain flour, called Atta Noodles. Instant rice noodles are also available in various flavors. However, Nestls original "Maggi" masala flavored noodles continue to be the most successful brand of instant noodles not only in India but in the United States for Indian Americans, as well. Although, Nestle is yet to introduce a microwaveable version of "Maggi" noodles, their current products continue to be increasingly popular. 10

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Foodles, a new Maggi noodle brand was launched in late 2010, focussing on health issues, with the tagline, ' Noodles Maggi noodles (raw) Nutritional value per 100 g (3.5 oz) Energy Carbohydrates Dietary fiber Fat saturated monounsaturated Protein Thiamine (Vit. B1) Riboflavin (Vit. B2) Niacin (Vit. B3) Folate (Vit. B9) Iron Potassium Sodium 1,895 kJ (453 kcal) 65 g 2.4 g 17 g 7.6 g 6.5 g 9g 0.7 mg (54%) 0.4 mg (27%) 5.4 mg (36%) 147 g (37%) 4.3 mg (34%) 120 mg (3%) 1160 mg (50%) without the No '. This range has significantly higher nutrition values compared to other popular brands. It comes in both Multigrain and Wheat-only forms. Maggi noodles are often criticized as unhealthy or junk food. A single serving of Maggi noodles is high in carbohydrates but low in fiber, vitamins and minerals. Noodles are typically fried as part of the manufacturing process, resulting in high levels of saturated fat and/or trans fat. Additionally, if served in an instant broth, instant noodles typically contain high amounts of sodium. The current U.S. Recommended Dietary Allowance of sodium for adults and children One package is 80 g Percentages are relative to US recommendations for adults. Source: United States Department of over 4 years old is 2,400 mg/day; in extreme cases, some brands may contain over 3,000 mg of sodium per package. Maggi noodles and the flavoring soup base also contain high amounts of monosodium glutamate.

Agriculture

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The most recent controversy concerns dioxin and other hormone-like substances that could theoretically be extracted from the packaging and glues used to pack the instant noodles. It was reasoned that harmful substances could seep into the soup as hot water was added to cup style instant noodles. After a series of studies were conducted, various organizations requested changes in the packaging to address these concerns.

Another concern regarding the consumption of fried foods, including instant noodles, is the possible presence of oxidation products resulting from poor maintenance of the oil. If the cooking oil is not maintained at the proper temperature or changed as often as necessary, these oxidation products, which are suspected to pose various health risks, can be present in the foods. Proper production standards minimize the risk.

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PRODUCT DEVELOPMENT

Hypothesis of the study:

To find out the product development and modification of Maggi Noodles The other objective is to know about the customer satisfaction level associated with the product modification and the customer preference level. To understand the influence of Maggi Noodles as a product modification on consumers mind set. To study the factors affecting the consumption pattern Product Modification of Maggi noodles in terms of product diversity

The project will be carried out in the form of a survey which will be done in Adoni Town, Kurnool District, Andhra Pradesh, India. The population has been segmented on the basis of income levels (lower, middle and higher income) and Age (children, middle and old age group).

Methodology of the study: The project will be carried out in the form of a survey. This will include primary research in addition to secondary research as stated below. The survey project method will be descriptive research design. Each respondent will be interviewed through a Questionnaire. The sample will be selected by a simple random sampling method. The survey will address the following information area The objective as spelt out can be elaborated into specific information areas to be studied. How do customers perceive Maggi noodle as a stable product modification, their

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Perception of noodles and

how do they associate themselves with Maggi noodle?

Are the consumers aware of Maggi noodle product modification or they associate noodles with some other product? Do they consider noodle as a healthy product or they are aware of the companys strategy of modification it to a healthy product by the launch of some of the new Products? Which product from the entire basket of Maggi noodle products does the consumers consider as the best selling product for Maggi noodle and to which the consumers frequently buy? Are the consumers willing to accept Maggi noodle product modification? If your preferred product is not available for repeat purchase then postpones you purchase or switch over to other brand.

PRODUCTION MODIFICATION
INTRODUCTION

Definition: An alteration in a company's existing product. ACCORDING TO MONASH MARKETING DICTIONARY


Any substantial change made to the attributes (size, shape, color, style, price, etc.) of a product; modification of a product is usually undertaken in an attempt to revitalize it in order to increase demand. However, my old warning applies, for your own sake, please be careful before you spend a
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lot of money developing it. First stage you should find a local (to you) Patent Agent and get a price off them for an initial assessment. Any reputable Agent (who is a Chartered Member of the Association, will give you a first meeting free of charge and will outline the various possibilities open to you. In my experience they will need to do a thorough search of the existing patents for you, and that will cost a bit, so get a written estimate before you commission them or you could run up some large bills. You can do this just by showing them some drawings and descriptions of what the product is about. The next step if the product has 'new design' merit will be for them to register the design. That part of the procedure is quite reasonably priced and will protect your idea until you can create it into a working product and then decide how next to safeguard it (maybe internationally too) WI tent. To find a Patent Agent you can look in local yellow pages or better still contact your local Chamber of Commerce who will be pleased to advise you on agents in their area. Talk to a couple of them by phone to find one that you are happy with. Don't be scared to ask for references, and check them out, before you tell them your idea. Please remember that it is important NOT to reveal your idea to anyone until they have at least signed a simple confidentiality agreement with you. You can download a simple one page form, from the internet, that will give you the correct wording to then be able to print your own agreement. Make sure that you get each person (or organization) that you talk to sign it BEFORE you give any information away. If you do not do this then as soon as you tell them, the idea becomes public domain and anyone can pinch it from you. I repeat, as soon as you tell anyone public about your idea, you have lost the rights to exclusivity, so be ultra careful.

Depending on where you are based there will probably be some kind of a "Inventors Club" type of organization and "Business Link" or your Local "Chamber of Commerce" will be able
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to tell you how to get in touch with them. They will be able to point you towards people who may invest in you for a share of the action. If all also fails there is an organization, that I am Chairman of, called the Advanced Manufacturing Group for Lancashire and if you go to the website and fill in an enquiry form, the enquiry will be posted for the members to see if anyone fancies taking a look at it for you to develop it. Many products have been created this way as the AMG member will often help with financing for the first prototype. Again though you MUST get them to sign confidentiality agreement and suitably witnessed to protect your asset. So then having found a manufacturer to create your first prototype you now have a product. Now if the lawnmower modification is something that could become big or even global, then you will need either an existing lawnmower manufacturer who is prepared to make under license for you, or indeed set up your own manufacturing company to assemble the product and sell it as an accessory. A good business angel should be able to help you there. You will need an Accountant with setting up businesses experience and he can introduce you to investors of the type you need. It might be that an existing firm of Lawn mower makers will take it on for you (and even employ you as part of the package if your ideas are good enough) to allow you to use your talents on design work alone and you can then choose to sell the idea under license to them, so that each one they make they pay you a royalty, or you could sell the whole thing out to them for a fixed fee. There is always the option, if it will fit on any make of mower, that you could go direct to the Tele marketers who would show and sell it on one of the shopping channels. The beauty of that is that after all the TV viewers have bought one you can still go to the lawnmower manufacturers and maybe they too will then adopt the product for their own sales too. The TV marketers (people like the old K-Tel promotions etc) will often put money into the manufacturing side of the product, to make stock for you, if you can show a desirable item that has good advantages that people will want to buy.
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Whatever you decide I would be pleased to know how you get on and I wish you much success and hope my advice is of use to you. If you need me to go into more detail when you have your first one completed and it works then please let me know and I will try to oblige. I must stress again the most important objective that you have at present is to get the idea registered so that no one else can take it away from you.

Meaning:
Product modification means changing one or more of the product's features and may involve reformulation and repackaging to enhance its customer appeal. Modifications can give a competitive advantage, e.g., a company may be able to charge a higher price and enhance customer loyalty. Product modification is often used as a way of extending the product life cycle of a product. Brassington and Pettit (2003) classify modifications into three distinct types: quality, design, and performance. Quality modifications relate to the product's dependability and durability; performance modifications relate to the effectiveness, convenience, and safety of products (e.g., washing machines that use less heat and water); and design modifications alter the aesthetic and sensory appeal of the product (such as its taste, texture, sound, and appearance). Such modifications can act to differentiate products in the marketplace, e.g., BMW cars have an immediately recognizable style. A number of issues have to be considered before deciding whether or not to keep the product, change it, or eliminate it (see product deletion); for example, what is the customer appeal? The product may have lost its distinctiveness because of the introduction of new products or improvements of its main rivals. By reformulating the product, it may be possible to regain its competitive edge. The company needs to assess.

New product development With new product development that company goes to product modification. In business and engineering, new product development (NPD) is the term used to describe the complete process of bringing a new product or service to market. There are two parallel

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paths involved in the NPD process: one involves the idea generation, product design and detail engineering; the other involves market research and marketing analysis. Companies typically see new product development as the first stage in generating and commercializing new products within the overall strategic process of product life cycle management used to maintain or grow their market share. The process 1. Idea Generation is often called the "fuzzy front end" of the NPD process Ideas for new products can be obtained from basic research using a SWOT analysis (Strengths, Weaknesses, Opportunities & Threats), Market and consumer trends, company's R&D department, competitors, focus groups, employees, salespeople, corporate spies, trade shows, or Ethnographic discovery methods (searching for user patterns and habits) may also be used to get an insight into new product lines or product features. Idea Generation or Brainstorming of new product, service, or store concepts idea generation techniques can begin when you have done your OPPORTUNITY ANALYSIS to support your ideas in the Idea Screening Phase (shown in the next development step).

2. Idea Screening
The object is to eliminate unsound concepts prior to devoting resources to them. The screeners should ask several questions: Will the customer in the target market benefit from the product? What is the size and growth forecasts of the market segment/target market? What is the current or expected competitive pressure for the product idea? What are the industry sales and market trends the product idea is based on? Is it technically feasible to manufacture the product? Will the product be profitable when manufactured and delivered to the customer at the target price?
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3. Concept Development and Testing


Develop the marketing and engineering details Investigate intellectual property issues and search patent data bases Who is the target market and who is the decision maker in the purchasing process? What product features must the product incorporate? What benefits will the product provide? How will consumers react to the product? How will the product be produced most cost effectively? Prove feasibility through virtual computer aided rendering, and rapid prototyping What will it cost to produce it? Testing the Concept by asking a sample of prospective customers what they think of the idea. Usually via Choice Modelling.

4. Business Analysis
Estimate likely selling price based upon competition and customer feedback Estimate sales volume based upon size of market and such tools as the FourtWoodlock equation Estimate profitability and break-even point

5. Beta Testing and Market Testing


Produce a physical prototype or mock-up Test the product (and its packaging) in typical usage situations Conduct focus group customer interviews or introduce at trade show make adjustments where necessary Produce an initial run of the product and sell it in a test market area to determine customer acceptance

6. Technical Implementation
New program initiation Finalize Quality management system
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Resource estimation Requirement publication Publish technical communications such as data sheets Engineering operations planning Department scheduling Supplier collaboration Logistics plan Resource plan publication Program review and monitoring Contingencies - what-if planning 7. Commercialization (often considered post-NPD) Launch the product Produce and place advertisements and other promotions Fill the distribution pipeline with product Critical path analysis is most useful at this stage

8. New Product Pricing


Impact of new product on the entire product portfolio Value Analysis (internal & external) Competition and alternative competitive technologies Differing value segments (price, value, and need) Product Costs (fixed & variable) Forecast of unit volumes, revenue, and profit These steps may be iterated as needed. Some steps may be eliminated. To reduce the time that the NPD process takes, many companies are completing several steps at the same time (referred to as concurrent engineering or time to market). Most industry leaders see new product development as a proactive process where resources are allocated to identify market changes and seize upon new product opportunities before they occur (in contrast to a reactive strategy in which nothing is done until problems occur or the competitor introduces an innovation). Many industry leaders see new product development as an ongoing process (referred to as continuous development) in which the entire organization is always looking for opportunities.

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For the more innovative products indicated on the diagram above, great amounts of uncertainty and change may exist, which makes it difficult or impossible to plan the complete project before starting it. In this case, a more flexible approach may be advisable. Because the NPD process typically requires both engineering and marketing expertise, crossfunctional teams are a common way of organizing projects. The team is responsible for all aspects of the project, from initial idea generation to final commercialization, and they usually report to senior management (often to a vice president or Program Manager). In those industries where products are technically complex, development research is typically expensive, and product life cycles are relatively short, strategic alliances among several organizations helps to spread the costs, provide access to a wider skill set, and speeds the overall process. Also, notice that because engineering and marketing expertise are usually both critical to the process, choosing an appropriate blend of the two is important. Observe (for example, by looking at the See also or References sections below) that this article is slanted more toward the marketing side. For more of an engineering slant, see the Ulrich and Eppinger, Ullman references below. People respond to new products in different ways. The adoption of a new technology can be analyzed using a variety of diffusion theories such as the Diffusion of innovations theory. A new product pricing process is important to reduce risk and increase confidence in the pricing and marketing decisions to be made. Bernstein and Macias describe an integrated process that breaks down the complex task of new product pricing into manageable elements.

Markets for Product Modification


An important product strategy for firms in mature markets is value-adding modifications to existing products. Marketing information that reveals consumers' preferences, buying habits, and lifestyle is critical for the identification of such product modifications. We consider two types of value-adding modifications that are often facilitated by marketing information: retention-type modifications that increase the attractiveness of a product to a firm's loyal customers, and conquesting-type modifications that allow a firm to increase the appeal of its product to a competitor's loyal customers. We examine two aspects of the markets for product modification information: (1) the manner in which retention and conquesting modifications affect competition between downstream firms, and (2) the optimal
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selling and pricing policies for a vendor who markets product modification information. We consider several aspects of the vendor's contracting problem, including how a vendor should package and target the information to the downstream firms and whether the vendor should limit the type of information that is sold. This research also examines when a vendor can gain by offering exclusivity to a firm. We address these issues in a model consisting of an information vendor facing two downstream firms that sell differentiated products. The model analyzes how information contracting is affected by differentiation in the downstream market and the quality of the information (in terms of how "impactful" the resulting modifications are). We analyze two possible scenarios. In the first, the information facilitates modifications that increase the appeal of products to the loyal customers of only one of the two downstream firms (i.e., onesided information). In the second scenario, the information facilitates modifications that are attractive to the loyal consumers of both the firms (i.e., two-sided information). The effect of modifications on downstream competition depends on whether they are of the retention or the conquesting type. A retention-type modification increases the "effective" differentiation between the firms and softens price competition. Conquesting modifications, however, have benefits as well as associated costs. A conquesting modification of low impact reduces the "effective" differentiation between competing products and leads to increased price competition. However, when conquesting modifications are of sufficiently high impact, they also have the benefit of helping a firm to capture the customers of the competitor. The vendor's strategy for one-sided information always involves selling to one firm, the firm for which the modifications are of the retention type. When the identified modifications are of low impact, this result is expected because conquesting modifications are profit-reducing for downstream firms. However, even when the information identifies high-impact modifications (and positive profits are generated by selling the information as conquesting information), the vendor is strictly better off by targeting his information to the firm for which the modification is the retention type. With two-sided information, the equilibrium strategy is for the vendor to sell the complete packet of information (information on both retention and conquesting modifications) to both downstream firms. However, in equilibrium, both firms only implement retention-type modifications. The information on conquesting modifications is "passive" in the sense that it is never used by downstream firms. Yet the vendor makes strictly greater profit by including it in the packet. This obtains because the price charged for
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information depends critically on the situation an individual firm encounters by not buying the information. The presence of conquesting information in the packet puts a non buyer in a worse situation, and this underlines the "passive power of information." The vendor gains by including the conquesting information even though it is not used in equilibrium. MODIFICATIONS AND IMPROVEMENTS TO EXISTING PRODUCTS We can review your current product and update it more current technologies! We can design in a replacement for those obsolete parts!

Product enhancements Next generation design Cost reduction Training Test Procedures Maintenance Procedures Test Fixture Design Hardware/Software Tradeoffs Redesign of current products Design modifications for replacement of obsolete parts Firmware Updates Guitar effect pedals modifications Guitar amplifier modifications

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CHAPTER-2 STUDY DESIGN

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IMPORTANCE OF STUDY:
In the first years of the new Millennium, we see a lot of examples of Product Modification What are the driving forces causing companies to seek new and weird ways to change the product so they can keep selling more?

1. The intensity of competition - the Competitive Environment, - in a globalized community of businesses all interlinked, it becomes easier and easier to copy other people's products, especially consumer electronics - so once you have launched a new product - there is a very short time before someone else will make a knock-off copy, or even make a slight improvement to capture your customers

2. The continued advances in technology, the Technological Environment. Technology makes it easier and easier to copy other products. Also, advanced in technology make it more possible to have to features to add on to a product that is several months old

3. The Economic Environment - the need for companies to make more money selling a product (maybe because the cycle was too short) -

4. The Social / Cultural Environment - after the product has been used by the early adopters, it might the possible that other customer groups have slightly different uses, and this can be accommodated if the product packaging or features are altered slightly to make it more appealing to other demographics.

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OBJECTIVES OF STUDY
To know the required modifications in Maggi Noodles To Know the customers perception on present features of Maggi Noodles To redesign the marketing strategies if any

FocusedMarketingObjectives
The product life cycle begins by finding out what customers want and what competitors are doing. The Internet can be used to solicit feedback on products and services, and run concept testing surveys, promote new products, and obtain customer feedback to impact product modifications or service improvements.

For the marketing cycle, the Internet can be used to enable direct no filtered messages to and from the public, businesses, consultants, and the press. Much like traditional advertising, it can achieve marketing objectives such as improving corporate and product brand image awareness.

When it comes to sales, the Internet can accomplish a great deal before transacting a final sale. Thousands of prospects can be efficiently moved through the early phases of the sales cycle - from awareness, to interest, to desire. Literature requests can easily be fulfilled and at low cost, including reprints of positive press quotes and articles.

In sales support, efficiency is obvious when answering customer queries and where some customer service levels can be fully automated.

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Research methodology
Research
The research is a process by which data is collected from various sources then processed interepted and analysed using statistical tools to drive useful information. He should design the product in such a way that the product will satisfy customers. He should know the behavior of customers towards a product, to be successful in marketing. behavior is the mental set in the minds of customers regarding the products. The Marketer should also position the product in the minds of customers so that it should be viewed favorable one by customers. Positioning is the act of designing the companys offer products/ services so that the target market understands and appreciates what the company stands for in relation to its competitors. The companys positioning must be rooted it in an understanding of how the target market defines value and makes choice among the available alternatives. As a number of competitors are increasing in the hair care market, the task of marketing of consumer goods is becoming more & more difficult. Measuring customer attitude and molding it in the companys favour is a very essential in this context analysis of customer attitude towards of NESTLE. For the marketing cycle, the Internet can be used to enable direct non filtered messages to and from the public, businesses, consultants, and the press. Much like traditional advertising, it can achieve marketing objectives such as improving corporate and product brand image awareness.

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Data collection Method


Primary data: Personal interviews will be conducted with the main dealer of NESTLE
in Adoni city, followed by a specific questionnaire administration designed to obtain data from respondents or customers to understand behavior towards the products.

Secondary data: The secondary information needed for the project was obtained from
books and Internet.

Data Analysis:
Analysis means, resolving into simple elements, Analysis of data is noting but processing of raw data into a form of useful information to user. After the collection of data it is very important to classify the data into simple term so that one can understand the information in the study. Along with analysis it is also important to interpret the data. Interpretation means explanation of meaning. It involves drawing inference from the analysis of the data. Analysis & interpretation are closely interlinked. Analysis & interpretation helps the researcher to give suggestion for problem in hand & also conclude the work.

Research Methodology:
A questionnaire is prepared considering the objective of the research. The questionnaire is self-administered and consists of multiple choices, open ended and dichotomous questions. Directly contacting the respondents and explaining them about the research purpose and also clarifying the respondents and explaining if any in the questionnaire collect information. After clarification the respondents were asked to answer all the questions, which are relevant to him/her.

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Total population
Adoni is a major commercial town in our state It is located at about 100 KM from city kurnool the population of city is around 3 lakhs it is industrially well developed city and is the famous for cotton and textile Mills . It is also a prominent trade center. It is also well known center for education in our state with facilities for all areas of education.

Sampling unit: The customers intend to be administered with the questionnaire were prospects and existing customers who use NESTLEproducts in Adoni. Sampling method: Non-probability (Convenience) Sampling size: 69 respondents Sampling technique: convenience Statistical technique: Percentage analysis Sampling area: Adoni town.

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Scope of the study

The study is going to be conducted in the Adoni city. It is intended to provide information about sales promotion towards NESTLE.

Adoni is a major commercial town in our state It is located at about 100 KM from city kurnool the population of city is around 3.5 to 4 lakhs it is industrially well developed city and is the famous for cotton and textile Mills . It is also a prominent trade center. It is also well known center for education in our state with facilities for all areas of education.

The city projects a balanced development. People of all income levels and from all sorts of cultural background are found in the Town. So study is conducted in and around Adoni town.

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LIMITATIONS
The present study is confined to a minimal sample size and may not reflect the opinion or response of the entire population in general. The results of our study are entirely confined to the responses of the Adoni Town consumers and might deviate in terms of actual population as a whole. Recommendations given after the study are entirely dependent on the survey and the secondary analysis done in the report. In attempt to make this project authentic and reliable, every possible aspect of the topic was kept in mind. Nevertheless, despite of fact constraints were at play during the formulation of this project. The main limitations are as follows: Due to limitation of time only few people were selected for the study. So the Sample of consumers was not enough to generalize the findings of the study. The main source of data for the study was primary data with the help of selfadministered questionnaires. Hence, the chances of unbiased information are less. People were hesitant to disclose the true facts. The chance of biased response cant be eliminated though all necessary steps were taken to avoid the same

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CHAPTER 3
COMPANY PROFILE

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History
The company dates to 1867, when two separate Swiss enterprises were founded that would later form the core of Nestl. In the succeeding decades the two competing enterprises aggressively expanded their businesses throughout Europe and the United States. In August 1867 Charles A and George Page, two brothers from Lee County, Illinois, USA established the Anglo-Swiss Condensed Milk Company in Cham. Their first British operation was opened at Chippenham, Wiltshire in 1873. In September 1867, in Vevey, Henri Nestl developed a milk-based baby food and soon began marketing it. The following year, 1868, saw Daniel Peter begin seven years of work perfecting his invention, the milk chocolate manufacturing process; M. Nestl's was the crucial cooperation M. Peter needed to solve the problem of removing all the water from the milk added to his chocolate and thus preventing the product from developing mildew. Henri Nestl retired in 1875, but the company, under new ownership, retained his name as Farine Lacte Henri Nestl. In 1877 Anglo-Swiss added milk-based baby foods to its products, and in the following year the Nestl Company added condensed milk, so that the firms became direct and fierce rivals. In 1905 the companies merged to become the Nestl and Anglo-Swiss Condensed Milk Company, retaining that name until 1947, when the name Nestl Alimentana SA was taken as a result of the acquisition of Fabrique de Produits Maggi SA (founded 1884) and its holding company, Alimentana SA of Kempttal, Switzerland. Maggi was a major manufacturer of soup mixes and related foodstuffs. The companys current name was adopted in 1977. By the early 1900s, the company was operating factories in the United States, United Kingdom, Germany and Spain. World War I created new demand for dairy products in the form of government contracts; by the end of the war, Nestl's production had more than doubled. After the war, government contracts dried up and consumers switched back to fresh milk. However, Nestl's management responded quickly, streamlining operations and reducing debt. The 1920s saw Nestl's first expansion into new products, with chocolate the company's second most important activity.

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Nestl felt the effects of World War II immediately. Profits dropped from US$20 million in 1938 to US$6 million in 1939. Factories were established in developing countries, particularly Latin America. Ironically, the war helped with the introduction of the company's newest product, Nescafe ("Nestl's Coffee"), which was a staple drink of the US military. Nestl's production and sales rose in the wartime economy.

The end of World War II was the beginning of a dynamic phase for Nestl. Growth accelerated and companies were acquired. In 1947 came the merger with Maggi seasonings and soups. Crosse & Blackwell followed in 1950, as did Findus (1963), Libby's (1971) and Stouffer's (1973). Diversification came with a shareholding in LOreal in 1974. In 1977, Nestl made its second venture outside the food industry by acquiring Alcon Laboratories Inc.

In 1984, Nestl's improved bottom line allowed the company to launch a new round of acquisitions, notably American food giant Carnation and the British confectionery company Rowntree Mackintosh in 1988, which brought the Willy Wonka Brand to Nestl.

Historical development It was at this point in time that Nestl decided to change the formulation of Maggi noodles. The purpose was not only to infuse fresh life into the brand, but also to save money through this new formulation. The company used new noodle-processing technology, so that it could air-dry instead of oil-fry the noodles. The tastemakers manufacturing process was also altered. As a result of the above initiatives, costs reportedly came down by 12-14%.

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To cook the new product, consumers had to add two cups of water instead of one-and-a-half cups. The taste of the noodles was significantly different from what it used to be. The customer backlash that followed the launch of the new noodles took Nestl by surprise. With volumes declining and customer complaints increasing, the company began to work on plans to relaunch old Maggi to win back customers. In addition, in 1998, Nestl began working out a strategy to regain Maggis position in the soup segment. To counter the Knorr threat, the company relaunched Maggi soups under the Maggi Rich brand in May 1998. The soups were not only thicker in consistency than those produced earlier, the pricing was also kept competitive and the packaging was made much more attractive. However, Knorr took Nestl by surprise by launching one-serving soup sachets priced as low as Rs 4. HLL too launched two-serving sachets of Kissan soup priced at Rs 7. As Maggi did not have any offerings in this price-range, it lost a huge portion of its market share to Knorr. The relaunch prompted market observers to compare Nestls move with US soft drinks major Coca-Colas New Coke fiasco. However, the company disagreed, Its a hard-5 nosed strategy that mixes nostalgia with the consumers voiced preference for the product it has been bred and rought up on. The reintroduction is Nestls acknowledgement of the loyalty of the Indian mother and the child to the original product. By May 1999, Nestls decision to bring back the old Maggi seemed to have paid off. Two months after the relaunch, the monthly average sales of Maggi noodles n the northern region rose 50% in comparison to the previous year. In July 1999, Maggi the brand, was promoted as the biggest brand in Nestls portfolio of brands in India, overtaking brands such as Nestum and Cerelac. Nestl believed that Maggi had immense potential as it was a very flexible brand under which regional variants could be introduced to meet various market needs. Company sources claimed that with reasonable price points and innovative products, Maggi could emerge as a top brand and a major growth driver for the company. To further support the brand, Nestl carried out various promotional activities as well. These included the August 1999 Fun-Dooz campaign and Jungle Jackpot campaigns. 6 As a result of the above initiatives, Nestl claimed to have cornered an 81% market share of the 20,000 tons noodles market by the end of 1999. Nestl sources claimed that Maggi noodles outsold the competition four times over and that more than four Maggi noodle cakes were consumed every second in the country.

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Management Theexecutiveboard,adistinctentityfromtheboardofdirectors,includes:

Peter Brabeck, Chairman of the Board of Directors, Nestl S.A. Paul Bulcke, Chief Executive Officer, Nestl S.A. Werner Bauer, Executive Vice President, Nestl S.A., Chief Technology Officer, Head of Innovation, Technology, Research & Development

Friz van Dijk, Executive Vice President, Nestl S.A. Asia, Oceania, Africa, Middle East

Luis Cantarell, Executive Vice President, Nestl S.A. United States of America, Canada, Latin America, Caribbean

Jos Lopez, Executive Vice President, Nestl S.A. Operations, GLOBE John J. Harris, Executive Vice President, Nestl S.A. Chairman & CEO of Nestl Waters

Nandu Nandkishore, Executive Vice President, Nestl S.A. CEO of Nestl Nutrition James Singh, Executive Vice President, Nestl S.A. Finance and Control, Legal, IP, Tax, Global Nestl Business Services

Laurent Freixe, Executive Vice President, Nestl S.A. Europe Petraea Heynike, Executive Vice President, Nestl S.A. Strategic Business Units, Marketing, Sales and Nespresso

Marc Caira, Deputy Executive Vice President, Nestl S.A. Head of Nestl Professional Strategic Business Division

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Jean-Marc Duvoisin, Deputy Executive Vice President Nestl S.A. Head of Human Resources and Centre Administration

David P. Frick, Senior Vice President and ex officio Member of the Executive Board

According to a 2006 global survey of online consumers by the Reputation Institute, Nestl has a reputation score of 70.4 on a scale of 1100.

Product mix
Nestle India limited (NIL) is a subsidiary of Nestle S.A. of Switzerland. With seven factories and a large number of co-packers, Nestle 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. Mission: 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. Associated Brands: Milk Products & Nutrition Nestle Everyday Dairy Whitener Nestle Milkmaid Nestle Fresh & Healthy Natural Dahi Nestle Milk Nestle Everyday Ghee Nestle Jeera Raita Nestle Milkmaid Fruit Yoghurt Nestle Slim Milk Preparing Dishes & Cooking Aids Chocolates & Confectionaries Nestle Milky Bar Nestle KitKat Nestle Munch Nestle Milk Chocolate Nestle Maggi Noodles

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ProductDetails
Product Type Type Primary Ingredient Processing Type Feature Certification Packaging Weight (kg) Shelf Life Place of Origin Brand Name Model Number Noodles Somen wheat flour Refined Low-Fat, Low-Salt, Normal FDA, HACCP, ISO, QS Bag, Box, Single Package 50 12months New Delhi Jvefoo Maggi Noodles

Organization structure of employees:


Nestle, the world's largest food maker, is looking to invest in noodle production in India. The Swiss food giant, who owns the Maggi brand, confirmed to just-food that it has signed a memorandum of understanding with Karnataka's state government to invest INR3.5bn in its local production facilities. Whether the investment would go towards increasing capacity at the existing Nanjangud facility or towards a completely new facility is yet to be finalized. Nestle has also reportedly been in talks with government officials in a second Indian site, Himchal Pradesh. The company has asked for 43 acres of land in Himchal Pradesh to build a food processing plant in the state, according to The Hindu Business Line. A spokesperson for Nestle India said discussions over the possible investment in Himchal Pradesh had not been concluded.
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Nestle currently has seven plants in India and employs over 5,000 workers.

Market Analysis:
Maggi has faced lot of hurdles in its journey in India. The basic problem the brand faced is the Indian Psyche. Initially Nestle tried to position the Noodles in the platform of convenience targeting the working women. However, the sales of Maggi was not picking up despite of heavy Media Advertising. To overcome this NIL conducted a research. NIL's promotions positioned the noodles as a 'convenience product', for mothers & as a 'fun product for children. The noodles' tagline, 'Fast to Cook Good to Eat' was also in keeping with this positioning. They promoted the product further by distributing free samples. Giving gifts on return of empty packets, etc. Effective Tagline Communication

Hurdles Faced
Sales saw a decline in 1990s: Formulation changed from Fried base to Air dried base. Competition increased in noodle segment: Top Ramen - Indo Nissin (Japanese co.) New product launched in market but failed: Dal Atta Noodles Sambhar flavour. Maggi launched some new products under their brand, but these products were not successful. Ketchups, Soups, Tastemakers,etc

Market Penetration Strategies

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Promotional campaigns in school. Advertising strategies: - focusing on kids. New product innovation according to the need of consumers:

Veg. Atta Noodles. Dal Atta Noodles. Cuppa Mania.

Availability in different packages:


50 gms. 100 gms. 200 gms. family packs (400gms.).

Conducting regular market research

Current Scenario of Maggi


Leading Brand in India as well as World. Current Sales: Approx.90000 boxes, Rs. 4, 79, 49,000 in Mumbai 10, 00,000 boxes 55 cr. in India Reasonable competitive pricing. Creative interaction blogs for customers

Suggestive Promotional Strategies


Focus on creating distinctive image, based on twin benefits of INSTANT and HEALTHY with emphasis on health conscious and rural market. Conduct promotional campaigns at schools in small towns with population more than 10,000.
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Strengthen the distribution channel of the rural areas within 100 KM of all the metros. Launch new advertisement campaign (T.V., Radio and print media commercials) with the brand ambassador. Conduct Market Research to find out the market penetration of the product in the rural areas covered.

Earnings
In 2009, consolidated sales were CHF 107.6 billion and net profit was CHF 10.43 billion. Research and development investment was CHF 2.02 billion.[1]

Sales by activity breakdown: 27% from drinks, 26% from dairy and food products, 18% from ready-prepared dishes and ready-cooked dishes, 12% from chocolate, 11% from pet products, 6% from pharmaceutical products and 2% from baby milks.

Sales by geographic area breakdown: 32% from Europe, 31% from Americas (26% from US), 16% from Asia, 21% from rest of the world.

Jointventures
Nestl holds 26.4% of the shares of L'Oral, the world's largest company in cosmetics and beauty. The Laboratoires Inneov is a joint venture in nutritional cosmetics between Nestl and L'Oral, and Galderma a joint venture in dermatology with L'Oral. Others include Cereal Partners Worldwide with General Mills, Beverage Partners Worldwide with CocaCola, and Dairy Partners Americas with Fonterra.

Ethicalandsustainableefforts
In 2000 Nestl and other chocolate companies formed the World Cocoa Foundation. The WCF was set up specifically to deal with issues facing cocoa farmers (disease had wiped out much of the cocoa crop in Brazil) including ineffective farming techniques and poor environmental management. The WCF focuses on boosting farmer income, encouraging sustainable farming techniques and environmental and social programmes.[11]

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Nestl is a founding participant in the International Cocoa Initiative (ICI), an independent foundation set up in 2002 and dedicated to ending child and forced labour in cocoa growing, and eliminating child trafficking and abusive labour practices.[12] In October 2009 Nestl announced its Cocoa Plan. The company will invest CHF 110 million in the Plan over ten years to achieve a sustainable cocoa supply. On the 23rd October 2009 Nestl and CNRA, the Ivorian National Centre for Plant Science Research, signed a frame agreement for cooperation in plant science and propagation, with a target of producing 1 million high-quality, disease-resistant cocoa plantlets a year by 2012. The aim is to replace old, less productive trees with healthier new ones.

Key Dates:
1843: Henri Nestl begins bottling lemonade and water. 1969: Nestl acquires 30 percent of Vittel, launching its involvement in the bottled water market. 1974: German bottled water producer Blaue Quellen is acquired. 1987: Majority control of Vittel is acquired. 1992: The Company acquires Perrier and forms Nestl Sources International (NSI). 1996: NSI changes its name to Perrier Vittel. 1998: The Company launches its first multi-site brand, Pure Life. 2000: The Pure Life brand is expanded into South America; the Aquarel brand is launched. 2002: Perrier Vittel changes its name to Nestl Waters. 2004: A joint venture is formed with South Korea's Pulmuone Group. Company Perspectives:

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Quality is the essential ingredient in all of our brands and the reason why millions of people choose Nestl products every day. Our consumers have come to trust in Nestl's commitment to excellence and turn to Nestl brands to maintain nutritional balance in a fast paced world. Overall, the late 1920s were profitable, progressive times. In addition to adding some new products of its ownincluding malted milk, a powdered beverage called Milo, and Eledon, a powdered buttermilk for babies with digestive disordersthe company bought interests in several manufacturing firms. Among them were butter and cheese companies, as well as Carlotta A.G., a Berlin-based chocolate business that began manufacturing Nestl, Peter, Cailler, and Kohler chocolate. In 1928, under the direction of Chairman Louis Dapples, Nestl finally merged with Peter, Cailler, Kohler, Chocolats Suisses S.A.the resulting company of a 1911 merger between the Swiss General Chocolate Company and Cailler, another leading firmadding 13 chocolate plants in Europe, South America, and Australia to the growing firm. Health claims controversy Nestl have faced criticism over their advertising of the Maggi brand, adhering to marketing regulations in developed countries, but making misleading claims in developing countries where regulation permits it. For example, in October 2008 Nestl mistakenly aired an advert meant for Bangladeshi TV on British TV. The advert made false claims that the noodles would "help to build strong muscles and bone". The British Advertising Standards Authority said that the advert did not abide by the new EU consumer protection legislation, by which advertisers have to provide proof of health claims.

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Controversy and criticism One of the most prominent controversies involving Nestl concerns the promotion of the use of infant formula to mothers across the world including developing countries, an issue that attracted significant attention in 1977 as a result of the Nestl boycott which is still ongoing.[16] Nestle continues to draw criticism that it is in violation of a 1981 World Health Organization code
[17]

that regulates the advertising of breast milk formulas. Nestl's

policy,[18] however, states that breastmilk is the best food for infants; however, women who cannot or choose not to breast feed for whatever reason do need an alternative to ensure that their babies are getting the nutrition they need. Two and a half decades since its launch, the "2-minute Maggi noodles" still dominates the instant noodles market in India. This Nestl brand's runaway success can be regarded quite a feat, especially in a country where most packaged products struggle to make their presence felt. Taking a cue from Maggi's success, a number of manufactures launched their own instant noodles in the early 90's but failed to create a dent in its market share. Even today, Maggi enjoys a market share of over 70%, despite the presence of a number of other brands. This decade old dominance, however, is set to be shaken up. Apart from a couple of new launches by independent instant food manufacturers, the last two years have also seen the entry of organised retailers and FMCG majors in this market. While Hindustan Unilever and GSK recently extended their Knorr and Horlicks brand into the noodles category, ITC is speculated to launch its own instant noodles under the Sun feast brand. Amidst this jostle for market share, the lure of better margins have pushed organised retailers to go as far as reducing shelf space for FMCG brands to make space for their own private labels. So what's behind this sudden rush of interest in such an age old product? "These launches represent a smart move by manufacturers to capitalise on the fundamental shifts in socioeconomic patterns of the Indian society, rather than a 'me-too' strategy. The manufacturers are

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trying to tap the potential, this change has to offer," says Ankit Bansal, consultant with Data monitor, Consumer Markets team. According to Data monitor estimates, the instant noodle market in India is worth over Rs 1,300-crore and is growing at a phenomenal rate of over 17-20% per year. "Main reasons responsible for this growth include a rise in the number of working professionals living away from parents, lack of time, and premium placed by consumers on convenient food options", says Bansal. One key reason for instant noodles always being a hit with the Indian consumers is the ease & speed with which it can be cooked. Some manufactures have further enhanced the convenience quotient by coming up with innovative packaging that does away with the need for a cooking stove and utensils. Noodles sold in a cup can be eaten right away after adding hot water; perfect for on-the-go consumption. Apart from the traditional positioning for kids, manufacturers are now targeting the adult consumers as well by leveraging on the convenience aspect which has become more important given the changing employment patterns. Given the increasing competition, manufacturers are constantly innovating with their product offerings to stay abreast of changing consumer psychographics. Even the market leader Nestl has adapted itself with time to maintain its robust sales growth. The best example is the launch of whole wheat Atta Maggi, a variant to avert health conscious mothers from switching brands or even giving up the purchase of noodles altogether in favour of healthier food choices for their kids. Playing on this trend, there have been numerous attempts by marketers to ride on the 'health and wellness' wave that has swept the urban Indian consumers. Foodles from Horlicks is a step ahead of other brands in market, and claims to have a multi-grain formulation fortified with vital nutrients. It remains to be seen however if the likes of Foodles can grab a sizable share of the market by banking on the 'health food' image, in a category which so far has only been an indulgent snack. Bansal is a bit sceptical of Foodles' potential for success. He states, "Foodles will do well only as long as consumers accept and like its taste, especially that of the multi-grain variety. Though healthier alternatives have been doing well, the flagship curry-flavored Maida noodles are still the largest selling variant by a huge margin."

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There is certainly a lot of scope for new and exotic flavours though, that can appeal to different ethnicities in India. "New flavours are likely to see greater adoption among working class consumers who are open to experimenting with new cuisines and have also adopted noodles as a regular meal item. Moreover, taste differentiation is the only practical option for independent players who are unable to compete either on marketing prowess or selling price," says Bansal. Growth opportunities for noodles are not restricted to urban areas alone as several FMCG companies have increased their reach in the rural markets as well. Nestl already targets rural/semi-urban markets with a low priced iron-fortified variant of Maggi noodles. Thus, to sum up, the competition in this space is set to sizzle while providing diverse consumer segments with an ever increasing set of options to suit their unique preferences.

Awards & Recognition

COMPANY AHIVEMENTS
Nestl Purina PetCare Company and its parent company, Nestl S.A., are frequently recognized by local, national, and international organizations for our positive work environment, focus on our associates, and career opportunities. Here is a sampling of some of the awards that we are proud to have received:

2010 Malcolm Baldrige National Quality Award Recipient - This prestigious award recognizes organizations that show consistent excellence in the areas of leadership; customer and market focus; strategic planning; process management; measurement; analysis and knowledge management; workforce focus; and results.

By receiving the Baldrige Award, Nestl Purina PetCare Company becomes:


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the first consumer packaged goods company ever to receive the Award; and the first pet food manufacturer to receive the Award.

In addition, out of 83 applicants, Nestl Purina PetCare Company is one of only seven companies to receive the award this year. And prior to the 2010 group, only 80 organizations had received Baldrige Awards.

Best Place to Work for Recent Grads - Nestl Purina was named by Experience.com and Yahoo! HotJobs as one of the Best Places to Work for Recent Grads in 2010. This award was given based on hiring and retention practices, benefits, training programs and growth opportunities. Nestl Purina was recognized for the many perks we offer to our employees, such as tuition reimbursement, green incentives and fitness and wellness programs, as well as for the developmental opportunities available in our organization.

2010 Best Place to Work in St. Louis - Nestl Purina was named as the Best Place to Work in St. Louis in the extra large category. We were recognized for our extensive associate training opportunities, as well as our numerous amenities including our on-site Store and Fitness Center, subsidized daycare, and our ability to bring pets to work. This recognition was given to us based solely on the input of our associates, which demonstrates the amazing culture we have at Nestl Purina.

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Role Model for The Starkloff Disability Institute - Nestl Purina is proud to have been named a Role Model company by the Starkloff Disability Institute. The Starkloff Institute is a non-profit organization dedicated to promoting full participation of people with disabilities in society. Co-founded by Max and Colleen Starkloff, the Starkloff Disability Institute is committed to changing attitudes to encourage a more inclusive society. Nestl Purina proudly supports the Institute and it's mission.

Minority Engineer Top 50 Employer - In 2010, Nestl Purina was named as a Readers' Choice Top 50 Employer by Minority Engineer Magazine. Companies were chosen by the readers, who nominated them based on likelihood of working at that company and whether the company provides a friendly environment for members of minority groups.

Top 100 Employers of the Class of 2010 - In January 2010, Nestl Purina was named as one of the Top 100 Employers of the Class of 2010 by The Black Collegian. This award was given based on employers projected entry-level hires and the majors these employers are recruiting.

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Best Place to Work - In 2009, Nestl Purina was honored as the best place to work in the giant category in St. Louis by the St. Louis Business Journal. Our company's unique culture, which encourages employees to bring their dogs to work, was one of many characteristics of Nestl Purina that helped us become one of the best places to work in St. Louis.

Best Places to Work in St. Louis - In 2008, Nestl Purina was honored as one of the Best Places to Work in St. Louis by the St. Louis Business Journal based on the company's unique culture which encourages employees to bring their dogs to work. In addition, associates enjoy an on-site fitness center, company store, medical center, and daycare programming for children.

50 Best Places to Work - In January 2009, Nestl Purina was named as one of St. Louis Magazine's 50 best places to work. Our unique culture, as well as many other perks Nestl Purina offers to associates, helped us to be featured in St. Louis Magazine and recognized as one of the best places to work in St. Louis.

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Heroes of the Planet Award - In 2008, Nestl Purina was named a finalist for the St. Louis Business Journal's "Heroes of the Planet Award" for their Sustainable Operations.

AAIM Connection Magazine - In August 2008, Nestl Purina's positive work environment and unique culture where associates are welcome to bring their pets to work were highlighted in AAIM's Connection Magazine. According to AAIM, "Bringing 'man's best friend' to work isn't the only perk available to employees. Add these to the list of work/life benefits: flextime, business casual dress, on-site fitness center, a company store with Nestl products at discounted prices, shipping and mailing center, a credit union, mothers' lounge, cafeteria and an on-site daycare."

Best Places to Launch a Career - Nestl USA was recognized by Business Week among their list of Best Places to Launch a Career.

Fortune Magazine's Most Admired - In 2008 and 2009, Nestl was ranked #1 in the consumer food products industry in Fortune Magazine's annual survey of America's Most Admired Companies.

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2008 SPARC Award - In 2008, Nestl Purina received the top honor in the pet care category from Supplier Performance Awards by Retail Category (SPARC). This award is voted on by our retailers, and Nestl Purina has received the highest honor from SPARC three times in the past three years.

Supermarket News Category Excellence Award - Nestl Purina also received the pet care gold medal from the Supermarket News Category Excellence Awards in 2008. Nestl Purina was honored by Supermarket News for sharing our best practices, assortment of quality products, and promotional support given to grocery stores.

RCGA's Top 50 - In 2008, Nestl Purina was again voted among the Top 50 Businesses Shaping the Future of St. Louis by the St. Louis RCGA. This award is presented to companies based on their significant dedication to the St. Louis business community as well as the positive contribution they make to enhance the local area.

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Nestl Innovation Awards - Not only is Nestl Purina recognized for our efforts externally, we are also recognized internally at the Nestl marketing summit. In April of 2008, the Nestl Innovation Awards were held, and Nestl Purina received a silver innovation award for the development and design of Beneful Prepared Meals, as well as a bronze innovation award for Purina Veterinary Diets FortiFlora.

Outstanding Corporate Citizenship Award - In 2008, Nestl Purina donated several tons of dog and cat food to assist in hurricane relief efforts. Nestl Purina has also helped with relief efforts for natural disaster in the past, by donating over 33 tons of dog and cat food after Hurricane Katrina. We are being recognized by the Louisiana Humane Society as an outstanding corporate citizen because of our assistance.

Barron's Most Respected - In 2009, Nestl was recognized by Barron's Magazine as being one of the most respected companies in the world.

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CHAPTER 4&5

DATA ANALYSIS AND INTERPRETATION

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Q1) which brand that comes first in your mind when you think about noodles industry? TABLE-1 A) maggi B) hillocks foodles c) top raman D) others
PARTICULARS Maggi Horlicksfoodles Topraman others Total


FREQUENCY 69 0 0 0 69

s
PERCENTAGE 100% 0% 0% 0% 100%

45 40 35 30 25 20 15 10 5 0 Maggi Horlicksfoodles Toprawman others

Data interpretation: From the above table we conclude that 100% people remember when they will think about noodles industry

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2) Do you aware of maggi?

TABLE-2 PARTICULARS Yes No Total GRAPH-2 FEREQUENCY 69 0 69 PERCENTAGE 0 0 100%

80 100% 70 60 50 40 30 20 10 0 Yes 0% 0 No 69

Data interpretation: From the above table 100%of the respondents aware about maggi noodles

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3) If yes how do you know about that product?

TABLE-3 PARTICULARS Electronic media Magazines Print media Others total GRAPH-3 FREQUENCY 59 13 17 0 69 PERCENTAGE 56% 19% 25% 0% 100%

70 56% 60 50 40 30 20 10 0 elecronicmedia magazines printmedia others 59 25% 19% 13 17 0%

Data Interpretation: From the above table we conclude that 56% of the respondents know about maggi through electronic media, 19% of the respondents know through magazines, 25% of the respondents know through print media.

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4) Why do you prefer maggi noodles?

TABLE-4 PARTICULARS TASTE QUALITY PRICE AVALIABILITY Total GRAPH-4


50 45 40 35 30 25 20 15 10 5 0 taste quality 15 8% 5 price avaliability 6% 45 21% 65%

FREQUENCY 45 15 5 4 69

PERCENTAGE 65% 21% 8% 6%

Data interpretation: From the above table we conclude that 65%of respondents because of taste, 21% of the respondents because of quality,8% of the respondents because of price,6%of the respondents because of availability prefer the maggi

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Q5) Do you like the taste of maggi?

TABLE-5 PARTICULARS Yes No Total GRAPH-5


80 100% 70 60 50 40 69 30 20 10 0 YES 0% 0 NO

FEREQUENCY 69 0 69

PERCENTAGE 100% 0% 100%

Data interpretation: From the above table we conclude that 100% of the respondents are like the taste of maggi

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6) Do you want any change in maggi about available size of package?

TABLE-6 PARTICULARS Yes No Total GRAPH-6


70 85% 60 50 40 30 20 15% 10 10 0 YES NO 59

FEREQUENCY 59 10 69

PERCENTAGE 85% 15% 100%

Data interpretation: From the above table we conclude that 85% respondents required any changes in package of maggi and 15% of the respondents not required the change in package of maggi

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Q8) Are you satisfied with the available prices of maggi (Rs 5, Rs 10, Rs 15, Rs20)?

TABLE-8 PARTICULARS Yes No Total GRAPH-8


80 100% 70 60 50 40 69 30 20 10 0 YES 0% 0 NO

FREQUENCY 69 0 69

PERCENTAGE 100% 0% 100%

Data interpretation: From the above table we conclude that 100% of the respondents are satisfied about price of maggi noodles.

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Q9) Do you required any decrease in price of maggi?


TABLE-8 PARTICULARS Yes No Total GRAPH-8
70 85% 60 50 40 30 20 15% 10 10 0 YES NO 59

FREQUENCY 59 10 69

PERCENTAGE 85% 15% 100%

Data interpretation: From the above table we conclude that 85% of the respondents are required decrease in the price of maggi and 15% of the respondents are not required any decraese

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Q10) Do you want any color changes in maggi?


TABLE-10 PARTICULARS Yes No Total GRAPH-10
70 85% 60 50 40 30 20 15% 10 10 0 YES NO 59

FREQUENCY 10 59 69

PERCENTAGE 15% 85% 100%

Data interpretation: From the above table we conclude that 15% respondents required change in colour and 85% of the respondents not required any change in colour of maggi noodles

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Q11) How do you feel about information given on the maggi package?
TABLE-4 PARTICULARS Use full Not use full Very use full Not considerable Total GRAPH-4
45 40 35 30 25 20 15 10 5 0 usefull notusefull 5 veryusefull notconsiderable 20 8% 8% 39 28% 56%

FREQUENCY 39 20 5 5 69

PERCENTAGE 56% 28% 8% 8% 100%

Data interpretation: From the above table we conclude 56 % respondents are says that the information given on the package cover is use full and 28% says that not use full and 8% says that very use full and 8% says that not considerable

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Q12) Are you satisfied with the flavor, color, taste, of masala given for maggi?
TABLE-12 PARTICULARS Yes No Total GRAPH-5
80 100% 70 60 50 40 69 30 20 10 0 YES 0% 0 NO

FEREQUENCY 69 0 69

PERCENTAGE 100%% 13% 100%

Data interpretation: From the above table we conclude 100% of the respondents are satisfied with colour, flavour and masala of maggi noodles

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Q13) How do you rate the quality of maggi?


TABLE-13 PARTICULARS Good Very good Average poor Total GRAPH-13
45 40 35 30 25 20 15 10 5 0 good verygood average poor 20 10 0% 28% 39 15% 57%

FREQUENCY 20 39 10 0 69

PERCENTAGE 28% 57% 15% 2% 100%

Data interpretation: From the above table we conclude 28% respondents are rated good about quality of maggi noodles and 57% rated very good, 15% rated average.

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Q14) Do you required any promotional activities about maggi?


TABLE-14 PARTICULARS Yes No Total GRAPH-14
70 85% 60 50 40 30 20 15% 10 10 0 YES NO 59

FEREQUENCY 59 10 69

PERCENTAGE 85% 15% 100%

Data interpretation: From the above table we conclude that 85% of the people required promotional activities and 15% respondents not required about maggi noodles

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Q15) Overall about you rate the maggi? TABLE-15 PARTICULARS Good Very good Average poor Total GRAPH-13
35 43% 30 25 29% 20 15 10 5 0 good verygood average poor 30 20 19 0% 28%

FREQUENCY 30 20 19 0 69

PERCENTAGE 43% 29% 28% 0% 100%

Data interpretation: From the above table 43% of the respondents rated good, 29 %very good, 28% average about maggi noodles.

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CHAPTER-6

CHAPTER 6

SUMMARY FINDINGS&

SUGGESSTIONS

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SUMMARY
1. Here the respondents say that the magi brand is cames frist in our mind if we choose to eat. 2.69 members are says that we are the aware of magi. 3.56% of the respondents know about maggi through electronic media. 4. The reason for choose the magi is taste. 5 Here the customers want to change the color of maggi. 6. The customers want the extra flavors of in magi. 7. The print media source of income is less. 8. There is no change in taste in magi than the previous taste. 9. The customers expect the decrease of price. 10. The promotional activities in maggi are good. 11. Some customers want change in the taste of maggi masala.

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FINDINGS
1. 100% of the respondents say that when they will think about noodles industry first they will think about maggi noodles. 2 100% of the respondents aware about maggi noodles. 3.56% of the respondents know about maggi through electronic media 4. 65%of respondents like the taste of maggi 5.85% of the respondents required changes in available packages according to prices 6.69% members are satisfied the price of magi. 7.59% are expect to decrease of price. 8. Here is there satisfaction in magi masala. 9. Here is a good satisfaction of product of maggi. 10. The promotional activities of magi are good.

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SUGGESTIONS

1) Increase the advertisements in print media 2) Customers are expecting price decrease do strategically change the price according to package 3) Customers require change in taste, so change ingredients for taste

4) Customers expecting different flavors in maggi, so introduce different


flavors.

5) Customers required colour of maggi,so introduce different colours in maggi

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BIBLIOGRAPHY

BIBLIOGRAPHY
Books referred

Marketing Management Fundamentals of Marketing

: :

Philip Kottler William Stanon

Websites
www. Google.com www. Wikipedia.com

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QUESTIONNAIRE

QUESTIONNAIRE
Name: Age: Sex: Male/Female Contact no.: Signature:

Q1) which brand that comes first in your mind when you think about noodles industry? B) maggi B) horlicks foodles c) top rawman D) others

2) Do you aware of maggi? A) Yes B) No

3) If yes how do you know about that product?

A) Electronic media B) Magazines C) Print media D) Others 4) Why do you choose maggi noodles? O Taste O Quality O Price O Availability Q5) Do you like the taste of maggi? O Yes O No

Q6) Do you want any change in maggi available size of package? O Yes O No

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Q7) If yes what changes is required ---------------------------?

Q8) Are you satisfied with the available prices of maggi (Rs 5, Rs 10, Rs 15, Rs20)? O Yes O No

Q9) Do you required any decrease in price of maggi? O Yes O No Q10) Do you any color changes in maggi?

O If yes which type of colors you prefer O No Q11) How do you feel about information given on the maggi package?
a) Usefullb)Notusefullc)Veryusefulld)Notconsiderable

Q12) Are you satisfied with the flavor, color, taste, of masala given for maggi? A) Yes ---B) If no what type of improvements required suggest--------------------------

Q13) How do you rate the quality of maggi? A) Good B) very good C) average D) poor

Q14) Do you required any promotional activities about maggi? A) If Yes what type of promotional activies required------------------------------------------------B) No

Q15) Overall about you rate the maggi?


a) Verygoodb)Goodc)AverageD)poor

Q16) Any suggestions ------------------------------------------------------------------

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QUESTIONNAIRE

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