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1. INTRODUCTION Ever since its launch in India in 1983, this brand has become synonymous with noodles. Thebright red and yellow colours of the packet with the brilliant blue 2-minute Noodles printed on it has found a place on every kitchen . Over the years, Maggi has grown as a brandand positioned itself as a Fast to cook! Good to Eat! food product.

2. SITUATIONANALYSIS Nestls Maggie noodles is the leading brand in the instant noodles segment in India, enjoyinga market share of 79.3%. The brand has grown to an estimated Rs 200 crore & contributes toaround 10% of Nestle Indias top line. Being the pioneer in the noodles market has given it afirst movers advantage over other brands. Maggi has regularly come up with new flavoursand has recently launched two variants- Vegetable Atta and Dal Atta noodles, catering to theincreasing demand for healthy snacks. 2.1 Market Summary 2.1.1 TARGET MARKETS Primary target: Children (<16)Nestle plans to widen its target audience by launching new variants Vegetable and Dal attanoodles for health conscious people. 2.1.2 MARKET DEMOGRAPHICS Demographics: Region: urban, semi-urban, rural (recent) Occupation : Housewives, working professionals, self-employed Sex : Unisex

Income : 1,20,000 p.a. upwards Social class : Middle and upwards Family life cycle : Young, single, married with children. Behavioural: Occasions : Regular, Everyday user-urban, rural-depends on the temporal aspects of theconsumers life(varied usage in terms of time of time of day, week, month, year) User status : first time user-rural, potential users-semi-urban, heavy users-urban Usage rate: Heavy user-urban, light-rural, medium-semi-urban Loyalty status : hard core and shifting loyals Buyer Readiness Stage: ruralsome are aware, semi-urban:some intend to buy(aware,informed),urban: informed(some desire,some intend to buy) Attitude toward product: Enthusiastic, positive Psychographics: Lifestyle : Hard pressed for time

2.1.3 MARKET NEEDS The urban Indian is used to having his dinner late from around 8:30 pm to as late as 11 pm.Hence a convenient snack between lunch and dinner is an often exercised option. In ruralareas, smaller priced packs stimulates demand. Maggi is a fun and convenience brand which sits strongly in its position as a "good to eat, fastto cook" anytime snack and is popular across different age groups. Opportunities inpractically all consumption categories arise in terms of "reach" and "medium of consumption". Hence the onus is on the company to make it easily available and affordableand in different sizes, catering to different categories of users like the new Maggi chota pack conveniently priced at Rs 5 for 50gms. The Indian palate is not too adventurous in terms of trying out new flavours.In fact today, Maggi have settled at standard flavours such as curry,masala, tomato and chicken and not much experimentation is necessarily required in thenoodles market. People prefer to have it easily available and affordable

2.1.4 MARKET TRENDS

The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billionin 2015.

Penetration level is only 30% for Maggi Noodles in urban areas as well as per capitaconsumption for the Instant noodles and pasta segment is low indicating the untappedmarket potential. Urban Rural 53 135 69 153 28 72 3,758 62,700 1 3.3

Population 2005-06 (mn household) Population 2009-10 (mn household) % Distribution (2005-06) Markets (Towns) Universe of Outlets (mn)

Urban profile Source:Statistical Outline of India (2005-2006)

Burgeoning Indian population, particularly the middle class segments and the ruralsegments, presents an opportunity to makers of branded products to convertconsumers to branded products.

Growth is also likely to come from consumer 'upgrading' in the matured productcategories.

At 4% constant value CAGR into the forecast period, value growth for packaged foodis predicted to remain healthy. Growth will continue to be fuelled by convenienceproducts such as noodles and ready meals with200 million people expected to shift toprocessed and packaged food by 2010

Manufacturers are introducing low-priced goods in smaller pack sizes. As a result, therural marketing efforts have pushed the demand for sachets in many consumer goods markets. Priced at Rs0.50-1.00, sachets have proved to be extremely popular insmaller towns and villages, where households cannot afford to buy larger packs dueto financial constraints. .

Consumer Profile Source: Statistical Outline of India (2005-2006)

Rapid urbanisation, increased literacy and rising per capita income, have all causedrapid growth and change in demand patterns, leading to an explosion of newopportunities. Around 45 per cent of the population in India is below 20 years of ageand the young population is set to rise further.

While instant noodles are still not generally consumed as main meals in India, moreindividuals are bucking this trend and accepting them as an option. This is, however,mostly restricted to busy working adults who live independently or only with theirspouse, away from their parents, and who have little time to prepare their own mealsat home. Given the requirements for convenience and saving time, these individualsresort to easy-to-prepare meals, such as instant noodles.

Increased health consciousness and abundant production of quality soyabean alsoindicates a growing demand for soya food segment.