A PROJECT REPORT ON

TO UNDERSTAND THE USAGE PATTERN AND COMSUMER ATTITUDE TOWARDS TOMATO SAUCES WITH MAGGI SAUCES AS A PRODUCT

SUBMITTED IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT OF TWO-YEAR FULL TIME COURSE OF BACHELORS DEGREE IN BUSINESS ADMINISTRATION

Under the guidance of Prof. Manoj Arora Assistant Professor of Business Administration

SUBMITTED BY:Pratik Vohra Class Roll no: 1629

Gobindgarh Public College (Affiliated to Panjab University, Chandigarh)

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CERTIFICATE
This is to certify that project entitled TO UNDERSTAND THE USAGE PATTERN AND COMSUMER ATTITUDE TOWARDS TOMATO SAUCES WITH MAGGI SAUCES AS A PRODUCT has been submitted to Punjab University, Chandigarh in the partial fulfillment of the requirements for the degree of bachelor of business administration is a bonafide research work carried out by PRATIK VOHRA under my supervision and that no part of his r project has been submitted earlier to me. The `assistance and help receiving during the course of investigation has been fully acknowledGED Prof.

ACKNOWLEDGEMENT
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I am highly indebted to Prof Manoj Arora, for his valuable inputs at the various stages of the project and for providing valuable advice in designing and implementing various research tools to collect relevant data. I am thankful to those individuals who gave in their precious time in filling the questionnaire and providing their immense cooperation without which the project would not have been possible. I am very grateful to Prof. Rishi kesh Mourya (HOD) for having given me an opportunity to undertake this project. Finally, I would like to state that the project not only fulfilled an academic requirement, but would also help me in future endeavors in the years to come.

DECLARATION
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I hereby declare that the project titled TO UNDERSTAND THE USAGE PATTERN AND COMSUMER ATTITUDE TOWARDS TOMATO SAUCES WITH MAGGI SAUCES AS A PRODUCT is an original piece of research work carried out by me under the guidance and supervision of Mr. MANOJ ARORA. The information has been collected from genuine & authentic sources. The work has been submitted in partial fulfillment of the requirement of bachelor of Business Administration to Punjab University Chandigarh.

PREFACE
As MICHEL DE MONTAIGNE observed: -There never was in the world two opinions alike, no more than two hairs or two grains; the most universal quality is diversity. The nineties are a celebration of diversities. Its people differ not only in usual ways- by age & gender, by race & nationality, by education & occupation, by marital status & living arrangements but also in their activities, their preferences, purchases, opinions & attitudes. So, with all of the diversity that surrounds us, the profusion of goods & services offered to us & freedom of choice available to us, one may wonder how individual marketers actually reach us with their highly specific marketing messages. The answer lies in the fact that in spite of the diversities amongst us there are many similarities amongst us - constants that can be found amongst many people of the world. One of the few common denominators amongst all of us, despite our differences, is that above all we are consumers & for the marketers it is important to recognize -- why and how individuals make their consumption decisions and what attitudes they possess about a particular brand. So, this research has been organized to explore the attitude & behavior of the consumers towards Maggi Tomato Sauces as a whole & further through analysis, suggestions are given.

INDEX
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1 INTRODUCTION 2. 3. 4. 5. 6. PROJECT DESIGN RESEARCH METHODOLOGY USED DATA ANALYSIS CONCLUSIONS AND SUGGESTIONS SWOT ANALYSIS FOR MAGGI SAUCES

BIBLIOGRAPHY ANNEXURE

EXECUTIVE SUMMARY
This project aims to describe the usage pattern, attitude & behavior of the consumers towards Tomato based sauces with special emphasis on Maggi Tomato Sauce as a whole. The project has the following Research Questions: Image perception of the brand & the product. Usage Pattern of consumers (in different income groups) towards Maggi Sauces. Efficacy of advertising of Maggi Sauces. Purchase Behavior of Consumers. Brand Loyalty towards Maggi Sauces. Identifying purchaser-user relationship. Identifying the barriers to the purchase of Maggi Sauces. An insight about other players in Tomato Sauce market. The data for different regions is a primary one which is being collected by surveying 200-230 households in Khanna market that included the survey of various female households in different localities. The survey method comprises of a structured questionnaire which helps to analyze the above mentioned objectives on the basis of this data collected from different areas.

HISTORY OF NESTLE
The history of Nestl began in Switzerland in 1867 when Henri Nestl, the pharmacist, launched his product Farine Lacte Nestl, a nutritious gruel for children. Henri used his surname, which means little nest, in both the company name and the logotype. The nest, which symbolizes security, family and nourishment, still plays a central role in Nestlsprofile. Since it began over 130 years ago, Nestls success with product innovations and business acquisitions has turned it into the largest Food Company in the world. As the years have passed, the Nestl family has grown to include chocolates, soups, coffee, cereals, frozen products, yogurts, mineral water and other food products. Beginning in the 70s, Nestl has continued to expand its product portfolio to include pet foods, pharmaceutical products and cosmetics too. Today, Nestl markets a great number of products, all with one thing in common: The high quality for which Nestl has become renowned throughout the world. 1867- Henri Nestl founded the company in Vevey, Switzerland. 1898-Nestl purchases its first factory outside of Switzerland Viking Melk factory in Norway. 1905- Nestl merges with Anglo-Swiss Condensed Milk Company. 1929- Nestl merges with Peter-Cailler-Kohler Chocolates Suisses S.A. 1938- Nestl launches Nescafe the worlds first instant coffee. 1947- Nestl merges with Alimentana S.A. with the brand Maggi. 1962- Nestl purchases Findus.

1974- Nestl becomes a significant shareholder in the Cosmetics Company LOreal. 1977- Nestl purchases Alcon, manufacturer of eye care products and kits. 8

1985- Nestl purchases the Food Company Carnation. 1988- Nestl purchases the confectionary company Rowntree Mackintosh and the pasta company Buitoni-Perugina. 1992- Nestl purchases the mineral water Company Perrier. 1998- Nestl purchases Spillers pet foods business. 1999- Nestl acquires Preparadosy Congelados Alimenticios LA, La Cocinera, which produces readymade frozen meals, pizzas, snacks and refrigerated products under the La Cocinera and Fricongel brand names. 2000- Nestl sells the Findus brand in all countries except for Italy and Switzerland. 2001- Nestl merges with Ralston Purina, the premier pet food Company in North America, and with unique expertise in the dry dog food area.

NESTLE IN INDIA: Good Food, Good Life Since The Turn of The Century NESTLE INDIA LIMITED
Nestle India Limited is a 51% subsidiary of Nestle S.A., Switzerland a Company that can trace its origins back to 1866. The original business of the Company was based on milk and dietetic foods for children. Numerous other food products have since been added to the line: Chocolate, instant beverages (the NESCAFE process was developed in 1938) culinary, refrigerated and frozen products, ice cream, mineral water and pet foods to make Nestle the World Food Company of the 20th century Nestle has been international from the very beginning with 509 factories today in 83 countries and certain global brands such as NESCAFE available in over a 100 countries. Nestle is the most multinational of all multinationals in every positive sense- only 2% of its turnover comes from the local Swiss Company. The Company is present in India with the following main brands MILKMAID, EVERYDAY, CERELAC, NESTUM, LACTOGEN, NESTOGEN, MAGGI, NESCAFE, NESCAFE SUNRISE, NESTEA, MILO, KITKAT, NESTLE CLASSIC, MILKY BAR, CURNCH, ALLEN'S, POLO, NESTLE PURE MILK. Local Sourcing Of Raw Materials: Nestle Factories in India Nestle has been associated with India since the beginning of the century - importing and trading In Condensed Milk and Infant Food. Manufacturing in India began in 1962, with the setting up of its First factory at Moga, Punjab. Commissioned in 1992, the Samalkha Factory manufactures weaning cereals, culinary products and milk products and water. Nestle does not own agricultural farms of in India, in line with its international policy aimed at encouraging and benefiting the local farmer. 10

Nestls first unit at Moga, Punjab, deals with manufacturing of milk products, infant milk food and weaning cereals, culinary products and beverages. This factory has since involved into one of Nestls ten largest Factories worldwide. Nestle has since contributed to all strengthening of the Indian industrial Infrastructure by setting up state-of-the-art factories in Cherambadi (TamilNadu), Nanjangud (Karnataka), Ponda (Goa) and Bicholim (Goa).

The second factory at Choladi, Tamilnadu to produce beverages (tea) was set up in 1967. To partfinance this project NIL went public in 1968. The third plant at Nanjangud, Karnataka, set up in 1989, manufactures instant coffee and health beverages. Nestle India Manufactures Liquid Milk, Sweetened Condensed Milk, Milk Powder, Dairy Whitener, Dessert Mixes, Weaning Cereals, Infant Milk Formulae, Junior Foods, Noodles, Sauces, Soups, Super Seasoning, Pickles Instant Coffee, Tea, Health Beverages, Chocolates, Confectionary, Wafers and Waffles. The Company depends on locally produced raw materials to manufacture world class quality foods by applying state-of-the- art manufacturing and processing technology. As a consequence, Nestle has not only got the best out of natural resources in the region where it operates but has helped to upgrade the quality and quantity of milk, coffee and coca available, for the economic benefit of the farmer as well as the health and nutrition of the consumer. A sterling example is the Nestle Agricultural Services contribution to the upliftment of the Moga Milk District in Punjab over three and a half decades. Environmentally Conscious Company: Nestle India puts over a hundred thousand tonnes of food in the marketplace every Year, marking its presence in most value added segments of the Indian food industry. Liquid Milk, Milk products, Infant Milk Formulae, Weaning Cereals, Culinary Products, Instant Coffee, Tea, Health Beverages, Chocolates and Confectionery, Wafers and Waffles. Solid Base for the future such responsible corporate citizenship has created goodwill for the Company in every community where it operates. Nestle plans to build on this and continue to play a leading role in the Indian Food Industry. Given Nestle Indias past performance, Nestle S.A. is confident that it can ably 11

support Nestle Indias vision to reach a turnover of Rs. 10,000 Crores in the very first decade of the 21 st century.

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Nestle India Limited A Brief Profile

PAST & PRESENT 1959: On 28th March, the Company was incorporated at Khanna. The company was promoted by Nestle Alimentana S.A. through a wholly owned subsidiary, Nestle Holdings Ltd., Nassau, Bahama Islands. 1978: During the period 4, 00,114 equity shares and 382,751 existing equity shares held by Nestls Holdings, Ltd., Nassau, Bahama Islands (Nestle) were offered to the resident Indian nationals at a premium of Rs. 2.50 per share. 1987: During the year installation of a new factory at Nanjangud (Karnataka), for the manufacture of instant coffee was in progress. 1989: The name of the company was changed from `Food Specialties Ltd.' to `Nestle India Ltd.' on 24th March. 1990: During the year company entered into chocolate business by introducing Nestle premium chocolates. 1993: Samalkha factory was commissioned during the year and underwent expansion for cereal based products. 1994: During the year company launched a number of new products viz., Cerelac Soya, Milk maid, Dessert Mixes, Maggo Tonit's Special Cooking Bases, Maggi 1-2-3 noodles, Contadina snack dressing and the chocolate items, milky base marbles and bar one peanut. And also launched Bonus and Polo. 1995: During the year company commenced construction of a new factory at Bicholim, Goa. At the same year, instant noodles factory was installed and commissioned at

Samalkha factory. - During the year company launched Kit Kat manufactures at the new factory at Ponda, Goa. 13

- During the same year the Nanjangud factory was commissioned and the unit was to manufacture MILO - the World's Largest Selling Chocolate energy food drink. - The Chennai-based Indian Food Fermentations tied up with Nestle India Ltd., to market its Dosa and vada batter in consumer pack, in the country. The company has signed an agreement to this effect recently. Nestle would sell the ready-to-use dosa, vada, sambhar and unique masala dosa batter in consumer packs, under its own brand name in the country. 1996: During the year company launched MILO-Chocolate energy food drink in South India and a range of culinary products like, Dosa and Sambhar mixes, pickles and new varieties of soups under the brand "Maggi". 1997: NIL is one of the top players in the processed food & beverages industry and the largest producer of instant coffee with a 49 per cent market share. - After the success of Kit Kat and Polo, Nestle India had launched its first product in the hard boiled sugar confectionery market, Allen's Splash. - Nestls wafer chocolate brand, Kit Kat, which created a major dent in the market with its launch, its international milk drink brand Milo had garnered a mere three per cent share (value terms) in the Rs 500 crore market, a year after its launch in India. - Nestle India Ltd. (NIL) leads the list of the country's top 15 coffee exporters for the ongoing calendar year in terms of both quantum and value for the period January 1 - October 23. 1998: Nestle SA and the BM Khaitan group set up a joint venture, Nutritional Food Products India Ltd, in 1990, which was amalgamated with NIL in 1993. - Nestle had set up a parallel distribution network across the country.

1999: The Company has also set up a special cold chain for product distribution in select retail outlets. - Nestle India entered into a 10-year agreement with Campco in February, 1990 for manufacture and supply of bulk quantity of chocolates and cocoa products. 2000: Nestle entered the domestic bottled water business and launched the product under the brand name `Pure Life'.

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- The Company launched its ultra heat treated liquid milk, `Nestle Pure Milk', in Bangalore, Chennai, Hyderabad and Kochi. - The Company launched Perrier and celebrated "Perrier Invitation Golf-2000". - Nestle India Ltd. launched Nescafe Gold and Nescafe Gold Decaffeinated. - Nestle India launched a range of gift packs under the Fox confectionery brand name for the festival seasons. The Company launched its second premium mineral water brand San Pellegrino in India. 2001: Nestle India Ltd. launched `Pure Life', its mass-market bottled water, adding one more premium brand to the already saturated Rs 600-crore bottled water segment. - Nestle Bar-One was relaunched after renovating it to make it smoother, creamier and better meets consumer needs. 2002: Nestle Group increased its holding in Nestle India to 53.27% -Tied up with Nilgiris to co-brand various dairy products like dahi, paneer, ghee and possibly milk

-Launched a throat lozenge branded Acti-V to compete against Procter & Gamble's Vicks cough drops. -Regained top coffee exporter position in India. 2003: Rolled out Nestle Development Nutrition Plan for infant weaning and launched its infant food CERELAC 123 as a range of products graded to the needs of infants in each stage of the plan -Nestle SA, Switzerland, buys 1.01 million shares in its Indian arm 'Nestle India'. With this purchase, the parent holding in its Indian arm goes up to 59.8 per cent from 58.7 per cent -Signed a 100 per cent buyback pact with Bengal Nestor's India Ltd (BNIL) for its ultra heat treated milk and other dairy products. 2004: Nestle India bags Tetra Pak's annual dairy and beverage industry award.

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Products/Projects/Important Brands:
Soluble coffee: Nescafe, Taster's Choice, Ricor, Ricoffy Roast & ground coffee: Nespresso, Bonka, Zo gas, and Loumidis Water: Nestl Pure Life, Nestl Aquarel, Perrier, Vittel, Contrex, S. Pellegrino, Valvert, Panna, Levissima, Vera, First Bismarck, Viladrau, Arrowhead, Poland Spring, Zephyrhills, Santa Maria, La Vie Other beverages: Nestea, Nesquik, Nescau, Milo, Carnation, Libby's, Caro Dairy products (shelf stable): Nestl, Nido, Nespray, Ninho, Carnation, Milkmaid, La Lechera, Moa, Klim, Gloria, Svelty, Molico, Nestl Omega Plus, Bear Band, Coffee-mate / (chilled): Nestl, LC1, Chamyto, La Laitire, Sveltesse, Yoco, Svelty, Molico Breakfast cereals: Nestl Infant foods: Nestl, Nan, Lactogen, Beba, Nestogen, Crlac, Neslac, Nestum, Guigoz Performance nutrition: Power Bar Clinical nutrition: Nutren, Peptamen, Modulen, Build-up, Nesvita Culinary products (bouillons, soups, seasonings, prepared dishes, canned food, pasta, sauces): Maggi, Buitoni, Crosse & Blackwell, Libby's, Thomy, Winiary Frozen foods: Magi, Buitoni, Stouffer's Ice cream: Nestl, Frisco, Motta, Camy, Savory, Peters Refrigerated products (yogurts, desserts, pasta, sauces): Nestl, Buitoni, Herta

Chocolate and confectionery: Nestl, Crunch, Cailler, Galak/Milkybar, Kit Kat, Quality Street, Smarties, Baci, After Eight, Baby Ruth, Butterfinger, Lion, Aero, Polo, Fruitips, etc. 16

Food Services and professional products: Chef, Davigel, Minor's, Santa Rica Pet care: Friskies, Fancy Feast, Alpo, Mighty Dog, Gourmet, Mon Petit, Felix Flavours for the food industry: Food Ingredients Specialties (FIS) Pharmaceutical products: Alcon, Galderma Cosmetics: LOreal (Nestle owns 49% of Gesparal, an investment vehicle 51% owned by the French Bettencourt family, headed by Liliane Bettencourt. Gesparal in turn owns 53.7% of L'Oreal, with the rest quoted on the Paris Bourse.)

Financial Results and Operations

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Nestle India Limited June 06, 2009 Domestic sales growth sustained
Nestle India's domestic sales have grown at a steady pace right through 2008 in the face of difficult trading conditions. This proves yet again Nestls portfolio's diversity and its resilience to withstand cyclical shocks. It also demonstrates the strength of its brands, which have not faced the kind of onslaught from regional low-priced players that have proliferated. Domestic sales in the last five years have grown at a CAGR of 8.3%, which is commendable indeed. Sales growth in CY08 was driven chiefly by 26.7% growth in prepared dishes and cooking aids and 22% jump in chocolate sales. The former category includes the Maggi range of culinary foods. Nestle innovated substantially here to launch small pack sizes to stimulate trials and consumption. Its Nescafe coffee was made available in a unique 'redimix' sachet form, which has fared very well. The premium bottled water brand Pure Life has performed below its expectations and a full review of the business is underway. The chocolates and confectionery segment grew on the back of the excellent innovations like Choc stick and Milky bar Choo, both low priced offerings that have become a hit with children.

Sales Value Growth (Rs.)

Sales Net Sales % growth Exports % growth Domestic CY03 15379.0 11.9% 3670.0 15.8% 13156.0 CY05 14671.0 -4.6% 2283.0 -37.8% 13156.0 CY06 15848.0 8.0% 2655.0 16.3% 14119.0 CY07 18268.0 15.3% 3099.0 16.7% 16111.0 CY08 CY09 18268.0 20950.0 6.6% 2362.0 -23.8% 7.5% 2011.0 -14.9%

18115.0 20144.0

%growth 18.7%

0.0%

7.3%

14.1%

12.4% 11.2%

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Sales Volume Growth

Category Milk products Other food Soluble beverage powders Prepared dishes & cooking aids Chocolate & confectionery CY06 -10.9% -42.4% 12.4% CY07 9.4% 13.5% 31.6% CY08 11.7% 9.8% -6.9% CY09 7.0% 8.0% 7.0%

n.a.

19.7%

26.7%

12.8%

n.a.

21.5%

22.0%

9.7%

In the milk products category, Nestl's UHT Milk fared well. Nestle has extended into other milk products such as ready-to-drink flavored milk, plain and fruit-flavored yogurt and butter. Nestl's milk product portfolio now truly looks well placed to challenge the likes of Britannia and Amul nationally. In the year 2008 too, Nestl's value-added milk products showed increased contribution, while innovations like Chocostick and Milky Bar Choo as well as the renewed aggression in other brands like Munch showed sustain growth in these categories. The coffee franchise too showed growth as price cuts stimulate demand and a life-style shift towards drinking coffee in urban India augurs well for coffee consumption and showed up sustained volume growth secularly.

Strategic Achievements
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Nestle has succeeded in emulating the success of other FMCG products into its portfolio, of offering small pack-sizes and convenience of use as a USP at very affordable prices. This strategy has been cast across product categories such as soups, coffee, flavored milk and chocolates. To improve penetration and availability, it pushed the 'out-of-home' channel of sales of products like Nestea, Nescafe Frappe, Italian Tomato Sauce mix, Maggi Hot Cup soups, and Nescafe vending machines were the chief products driven through this channel. Much of the strong volume growth seen in these categories is attributable to this change in tack. According to company sources, Nestl's early successes with its brand extensions and new delivery channels will lead to sustained growth in the years to come.

Exports
Exports have tended to sputter last year and the performance in Q1CY09 is also not encouraging enough to believe that Nestle wishes to turn things around. One of the chief causes for the decline in exports is the 7.4% drop in sales volume. This was on account of Discontinuation of tea exports and a higher base in CY08. Lower realization in instant coffee exports to Russia (roughly three-fourth of its exports) on account of lower coffee prices also impacted sales negatively.

Benign raw material prices help, but for how long?

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Nestle has benefited from benign raw material prices for the last few years. Observe that milk, (42% of commodity material costs for Nestle) has seen prices decline by close to 10% in the last four years. Green coffee, which is 12% of such costs, is down 60% in the same period, while other important products like sugar and wheat flour are also down between 1% to 7%.Milk prices are apparently already up this year and we suspect that commodities like coffee and cocoa may have seen their lows in 2008. The first quarter results reflect inflationary pressures straight away on the raw material front.

Marketing and distribution costs under check

Nestl's advertising costs have moved down by 100 basis points in the last two years as a percentage of sales while freight & distribution costs are down 70 basis points. S & D costs account for 13-14% of net sales in the same period. Since these have remained flat in absolute terms in the last three years, even as sales have grown by 23%, the accretion to the bottomline is about Rs.160mn in two years just on this count. Continuous investment in IT infrastructure, supply chain efficiencies and optimum logistics management has aided the company.

Selling & Distribution costs

Particulars A&P CY06 8.3% CY07 8.7% CY08 7.9% CY09 7.7%
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costs Freight & 5.5% Distr. Costs Total S & D 13.8% costs

5.7% 14.5%

5.1% 13.0%

5.0% 12.7%

Capital efficiency remains exemplary

Nestl's return ratios speak for themselves. The company has been able to grow the RoCE and RoEs even from present high levels owing to continuing contraction of its balance sheet size. Sharp reduction in working capital, low capital expenditures in relation to the growth in sales in the last three years, has seen Nestl's ROE almost double to 90% from an already healthy 43% in CY03. Since Nestle provides perhaps excessively and aggressively for contingencies and write-offs, we believe the net profit and PBIT before exceptional would offer true representation.

Ratios RoE # RoCE Dividend payout # PBIT Margin

CY06 43.3% 52.6% 0.9 14.4%

CY07 58.7% 72.0% 1.3 15.6%

CY08 72.6% 70.9% 0.9 15.7%

CY09 89.7% 107.2% 0.9 19.4%

Capital Expenditure
Nestl's annual capital expenditure has averaged Rs.420mn in the last five years (CY03-09), which is lower than what it spent in the previous five years. (Rs.680mn). Since capacity utilization figures are not available category-wise, it is difficult to get a fix on it. However, when viewed in light of the 27% growth in sales in the last five years it does appear that Nestle would need to spend slightly more on 22

capex in the next three years. An indication to that effect may come from a slightly lower or flattened dividend payout in this period.

Valuations
Nestle trades at the top end of the valuation range among peer group stocks. Further, the parents' sporadic but regulated buy-back of the Indian subsidiary's stock each year has meant that the stock has been well-supported by fundamental and technical factors. Given the obvious merits of its business, the exemplary performance ratios and its resilience to the slow-down in the FMCG sector, impart high durability, greater visibility and less volatility to its earnings and it is indeed worthy of its premium valuations. Nestls sales are targeted to grow by 7.5% in CY08 (taking into consideration some inflationary pressures on raw materials and hence allowed margin expansion of just 60 basis points). However this should be enough for the gross profit to grow by 23% and net profits before exceptionals to rise by 27%. Nestls EPS would rise to Rs.30.10.

ABOUT THE BRAND

What exactly a brand is?

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The brand is defined as a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of the competitors. In essence, a brand identifies the seller or maker. It can be a name, trademark, logo, or other symbol. It is essentially a sellers promise to deliver a specific set of features, benefits, and services consistently to the buyers. A Brand conveys upto six levels of meaning: Attributes Benefits(functional and emotional benefits) Values Culture Personality User Brand is basically a market term, a major selling tool & is one of the essential and most important components of the total product personality. A brand name not only facilitates advertising and promotion but also functions as demand stimulant. Nowadays consumers have become extremely brand conscious and this may be attributed to the intensive brand promotion undertaken by the marketers. Nowadays when one goes in the market to buy Tomato Sauces, he/she would not ask for just one tomato sauce but over the years due to the impact of the image created about the particular brand in the mind of the consumers, they insist for the particular brand say Maggi, Kissan Heinz, etc. Thus it is the image associated with the particular brand, in a way decides the success of the whole gamut of the marketing and promotional efforts done by the company, as it helps in creating brand loyality towards a brand. So, a good brand name should be distinctive, easy to pronounce, recognize and remember. Above all it should be appealing. 24

MAGGI A BRAND DESCRIPTION HISTORY OF MAGGI

ACHIEVEMENTS
MAGGI has become a household name in Singapore, synonymous with quality food as well as being a leading culinary expert, boasting cooking aids that provide invaluable help to housewives in whipping up tasty and convenient meal solutions for their families. Most have grown up with fond memories of MAGGI 2-Minute Noodles. In fact, many can still recall the MAGGI 2-Minute Noodles commercial on television years ago that depicted two school children running home to enjoy a bowl of scrumptious MAGGI noodles. The jingle is still embedded deep in the minds of consumers -Fast to cook, good to eat and has made MAGGI noodles a must for every home. With the regional R&D Centre in Singapore focusing on development of Asian cuisine, MAGGIs portfolio of products can be developed at a faster pace to suit the needs of consumers. The MAGGI range of products has evolved from noodles and sauces to include cooking aids and recipe mixes to cater to the changing lifestyles of Singaporeans. These include products which are nutritious for health conscious Singaporeans.

HISTORY

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Over a century ago, back in 1884, a genius called Julius Maggi invented a powdered pea and bean soup, to provide nutritious, easy to prepare food for busy women who worked in factories and didnt have time to prepare healthy meals. This product was able to provide much needed nutrition for the people. Julius Maggi followed this first MAGGI product two years later with the invention of ready-to-use soups and liquid seasoning. Then Julius Maggi perfected bouillon concentrates, first in capsules, followed by cubes. Since then, the MAGGI range has extended substantially. In Singapore, the first products produced were MAGGI Tomato Ketchup and Chilli Sauce, launched in 1969. This was followed two years later with the popular MAGGI 2-Minute Noodles. Today, these three products are the market leaders in their respective categories.

THE PRODUCT
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MAGGI offers a total experience in culinary delights to consumers - with authentic tasting products, which are of the highest quality. The extensive MAGGI range includes MAGGI Noodles, Bouillon/Chicken Stock in powder and liquid, Dipping and Cooking Sauces, Cooking Aids and Recipe Mixes. In the bag noodles segment, MAGGI dominates, enjoying a high penetration rate of 77 percent in homes of Singaporeans while in the sauces category, MAGGI has almost 50 percent market share. The MAGGI Recipe Mixes include the MAGGI Hari Hari Favorites range which enables busy adults and working mothers of today to cook up a mouth-watering feast of timeless culinary classics. The variety of recipe mixes offered within the range is the ideal solution to creating authentic Malay and Chinese favourites with ease and convenience. In this way, MAGGI has also helped preserve the culinary heritage of traditional cuisine for people to cook these dishes in their own homes any day of the week.

RECENT DEVELOPMENTS
In 2002, MAGGIs presence in the noodles category was strengthened by the launch of MAGGI Hot Bowl Noodles and MAGGI Famous Cup Noodles to meet the increased demand for convenience. MAGGI also caters to new trends with its range of vegetarian products - MAGGI 2-Minutes Noodles in Vegetarian flavor and MAGGI Shiitake Mushroom Oyster Flavored Sauce. In the premium sauces category, MAGGI launched the delicious MAGGI Thai Chilli Sauce and MAGGI Paste Mixes. 27

Another area of product portfolio expansion is the cooking aids segment, a growing segment relevant to needs of todays busy Singaporeans. MAGGI is the first in the recipe mixes category in Singapore to obtain the Healthier Choice Symbol, awarded by the Singapore Health Promotion Board. It boasts four tasty flavours; Sweet & Sour Fish, Chilli Prawn, Braised Chicken Mushroom and Black Pepper Beef.

PROMOTION

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In 2002, MAGGI was an exhibitor at Food Expo, a major consumer of products from local food companies or companies with local/Asian food offerings. This event also served as a launch pad for MAGGI Hot Bowl Noodles, generating high trial and awareness. MAGGI does both wet and dry sampling at high traffic outlets and locations using affinity group targeting, especially for new products to drive awareness and trial e.g. sampling of MAGGI Hot Bowl Noodles to tertiary students in hostels. Secondary schools are not left out MAGGI sponsors home economics classes and cooking competitions. The objective is to teach students to prepare simple, yet tasty and nutritious meals at home. The themes and recipes are carefully selected to ensure relevance to the needs of the various participants. Recipe cards are produced and distributed during these sessions for easy reference, while MAGGI sampling packs are given away after the sessions for participants to whip up some MAGGI magic at home.

BRAND VALUES
MAGGI offers consumers simple solutions for todays consumers who are under various pressures such as time, budget, declining traditional cooking skills and the constant search for variety. The MAGGI range has established a reliable bond with consumers by giving ideas and advice that makes it easier to provide interesting meals. MAGGI products make providing tasty and interesting meals simple and easy. They make food more of an enjoyable sensory experience.

THINGS YOU DIDNT KNOW ABOUT MAGGI

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 The MAGGI brand is over 100 years old and is recognized worldwide for its culinary range of products. The MAGGI brand traces its roots all the way back to Switzerland in 1836. In 1947, the MAGGI Company merged with Nestl. Nestl strengthened the distribution and financial base of MAGGI and enabled it to become a leading world food brand. The first product that Julius Maggi launched was MAGGIS Leguminous Flour and then MAGGI Seasoning, which is still available today. MAGGIs presence in the noodles category was strengthened by the 2002 launch of MAGGI Hot Bowl Noodles and MAGGI Famous Cup Noodles. MAGGI revitalized this segment with the introduction of exciting, authentic local flavours adding a clean, springy bite to the product.

MAGGI SAUCE A BRIEF BRAND PROFILE

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Maggi sauces manufactured by NESTLE INDIA LTD were launched in October 1985 and created consumer history. For the first time, a food product was launched nationally across 300 countries. Maggi sauces are available in 4 flavours: Maggi Tomato ketchup launched in 1985. Maggi Hot n Sweet launched in 1985. Maggi Chilli Garlic launched in 1986. Maggi Masala Chilli launched in 1987.

Maggi Sauces are available in the following packings and with the following Price points: 200g --25/- for penetration 600g -- 57/- is the core grammage a house wife ends us buying 1.2 kg --89/- for consumers to upgrade from 600g to 1.2kg at less than double the price 10g-2/for penetration (Economy pack and the sachet)

MARKET CHARACTERISITCS
MAJOR PLAYERS & PERFORMANCE TRENDS
31

RED HOT! THE KETCHUP WAR GETS SAUCIER

India is primarily a dip-consuming nation, be it curd with parathas or chutney with dosas. The shift from home-made dips to tomato ketchup in urban households appears to be a natural process. Urban and semi-urban households are also showing a trend towards a breakfast habit of eggs, hence augmenting the demand for ketchup (to be consumed along with the eggs). According to research carried out by HLL, there is an increased usage of ketchup by younger adults and teenagers -- and not just children -- both at home and outside. The action in the Rs 1 billion tomato ketchup market in India is getting redder, hotter, and sweeter. The Rs 250-crore category is currently dominated by multinationals like Nestle, HLL and Heinz. While Nestle, HLL and Heinz are present in the Rs 120-crore ketchup category through their brands Maggi, Kissan and Heinz respectively, HLL's Kissan is the only dominant branded player in the Rs 100-crore jams category. The tomato ketchup segment is currently witnessing a robust 20 to 25 per cent growth. Pegged to see a 40 per cent growth over the next five years, the approximate size of the purees, jams and sauces market in 2005 is projected at Rs 10 billion. According to the new relief, all food preparations based on fruits and vegetables are exempt from excise duty making wide range of products of common use like pickles, sauces, ketchup and juices cheaper. Even the rural markets are not left untouched. After years of growth derived primarily from the urban markets, the FMCG companies have now realized that India lies in its rural villages. So much so that rural marketing has become the latest marketing mantra of most FMCG majors. With extensive competition not only from MNCs but also from the numerous regional players and the lure of an untapped market has driven the marketers to chalk out bold new strategies for targeting the rural consumer in a big way.

FACTORS IMPACTING DEMAND 32

Demand for sauces is affected by a number of different factors. In the mayonnaise and sauce markets, consumption and pricing of certain meats, chips, and vegetables influence manufacturers sales. The state of the overall economy, which determines how much money consumers have in their wallets, also has a significant impact on demand for dressings and sauces, in more ways than one. Economic trends will not only dictate how much consumers can spend when shopping for their weekly groceries, but also how often consumers will visit fast food and other restaurants.

MAJOR PLAYERS IN SAUCE INDUSTRY

The companies that will be cooking up new recipes of growth include Hindustan Lever (HLL), Nestle, Heinz and Nafed among others. Another player that has made a high impact in the sauces 33

segment is Tops Foods, which sells products such as pickles and sauces under the Tops brand. Volfarm, a known and established name in this sector has been slowly wiped out after the introduction of these new entrants in the particular segment. HLL has increasingly made its Kissan tomato ketchup portfolio ethnic with variants like Kissan Tomato Pudina, Kissan Tomchi, Kissan Tom-Imli and others, while competitor Nestls Maggi tomato ketchup has variants in chilli-garlic and hot-n-sweet.

COMPETITION PERFORMANCE TRENDS

According to an extensive retail audit conducted by Samsika for the organised ketchup market in July 1997, Maggi ketchups had a 53 per cent market share in Bombay, of which the plain ketchup (200 gm, 34

600 gm, 1,200 gm pack sizes) accounted for 36.5 per cent, the rest being with Maggi Hot & Sweet (200 gm and 600 gm). (Nestle, claims a whopping 85 per cent market share in the Maggi Noodles category).

KISSAN HLLs Kissan, with all its variants, has a 48 per cent market share nationally, both in terms of volume and value. HLL, however, puts the national volume at 17,000 tonnes MAGGI Nestle, for its part, claims a 53 per cent national share in what it says is the 13,000-tonne market. HEINZ In the tomato ketchup Foodservice market, Heinz holds a European market share of 30 to 45%. With 38,600 employees, the multinational operates 200 plants globally. The companys products are organized into six core businesses and among these ketchup, sauces, and condiments comprise of 27% of fiscal year 2001 sales.

Ketchup and Condiments: - Ketchup has always been the companys flagship brand. With global ketchup sales in excess of $1.3 billion, Heinz has over 50% of the

domestic ketchup market and approximately 34% of the global market. However, Heinz ketchup faces challenges from other brand name ketchups, private label ketchups, and salsa. The increased popularity of salsa and other ethnic condiments as well as the lower cost structures for private label brands will threaten Heinzs market share.

Tops, the Rs 15-crore company has a wide range of products ranging from 21 varieties of pickles to jams, Chinese traditional noodles to juices and ketchups. We expect to double our growth figures this year and aim at targeting about 20 per cent share of the Rs 250-crore jams and ketchup market. The company aspires to reach a target of Rs 100 crore by 2006 and is all out to focus entirely on the huge domestic market.

35

BRAND POSITIONING STRATEGY

According To Rosse Reaves Positioning is the art of selecting out a number of unique selling propositions, the one which will get maximum sales. According Philips Kotler 36

Market Positioning is arranging for a product to occupy a clear, distinctive and desirable place in the market and in the minds of target customer. Thus, basic components of positioning can be referred to as:(1) Product class or the structure of the market in which the brand will compete. (2) Consumer Segmentation (3) Consumer Perception of Brand in relation to competitors.

STRATEGY STATEMENT OF MAGGI SAUCES

TARGET MARKET: Upscale household (income 2500+) with particular emphasis on children. POSITIONING PRODUCT LINE: KETCHUP - : A Tasty, High Quality ketchup which goes best with all eats. HOT AND SWEET, CHIILLI GARLIC, MASALA CHILLI: Uniquely spiced ketchup to suit the adult palate. PRICE: At par with competitive brands. 37

DISTRIBUTION OUTLETS: All towns and all types of outlets both in urban and rural areas. COMMUNICATION STRATEGY: Chahiye Yahi Chahiye is the last theme commercial run last year on TV. Strategy is to raise preference for the brand vis a vis competition. PROMOTION STRATEGY: Target kids via promos like water bottle, Tiffin pack or do value promos including noodles free, extra grammage or price offs (5 or 10/- off on packs) for the housewife. RESEARCH & DEVELOPMENT: Done Internationally.

OBJECTIVES OF THE STUDY

PROJECT AIM:
To understand the usage patterns and attitudes of the consumers towards the Tomato based Sauces product category with focus on MAGGI SAUCES.

Objectives of the Study:

The present study was undertaken to describe the following objectives:-38

1) To have a better understanding of the consumer attitude and behavior towards Maggi Sauces. 2) To study the influence of Price, Quality, Availability, Promotional Schemes on the purchase behavior of the consumers. 3) To study the image perception of the consumer towards Maggi Sauces. 4) To explore the impact of physical attribute of the Maggi Sauces on the Consumer.

Scope Of The Study

This study is conducted by the method of field survey of the females in the different zones, in the Khanna market. Since this study enables to discover the usage pattern and attitude of the consumers in the Khanna market towards the Maggi Tomato Sauces, this is basically an exploratory, conclusive kind of a study.

39

Limitations Of The Study:

As the questionnaire was quite comprehensive so respondents were often complaining that it was taking a lot of time. Time constraint because of which sample size has been restricted to just 200-250. The study surrounded the Khanna city only. The respondents were not ready to tell their actual income The individuals were not ready to fill questionnaire due to lack of time

40

Sampling Unit
The universe for this project was Khanna city. The decision to have number of samples/ respondents had to be decided keeping in mind the following factors:- The time available. The objectives which are to be fulfilled through this study. The type of target customers for research.

The respondents were selected randomly for the study purpose.

Data Collection
In this research, Primary data is collected by administering questionnaire to the respondents. The consumer survey is conducted by calling upon the respondents door to door in all areas, in which the survey is to be conducted. Thus, a thorough field survey is done in this research study.

41

Sample Size
Keeping in mind the above stated factors; the sample size was kept between 200-230 respondents and in order to have proper representation of the sample the 14 localities are chosen from khanna city, in which survey is to be conducted. Out of this, around 200 responses have been used in the final analysis.

RESEARCH METHODOLOGY
The research was carried out in two phases:--

DATA COLLECTION:
The first phase comprises of designing the instrument, i.e., designing the Questionnaire. DESIGNING THE QUESTIONNAIRE The decision about the format of the questionnaire was very important and crucial since it has to fulfill all the research objectives, so that all the questions and problems are answered and at the same time tabulation and analysis should be easier and subjective bias should be eliminated. Following criteria was kept in mind while designing the questionnaire:-1) The information sought should be clear and precise. 2) Use of multiple choice or five point ranking questions were used in the questionnaire, so that it is easy to administer and less time consuming.

42

3) The wording of the questions was kept simple so that both researcher and the respondent can understand easily. 4) The use of open ended questions along with the close ended questions were also introduced to have the complete in-depth study of the consumer attitude can be made to the extent possible. 5) Proper scope has been provided in the questionnaire for the quantification of the results. 6) The time factor was also very important since the research has to be done in the stipulated time along with the tabulation and analysis of the results.

The questionnaire, which is used to conduct research, is a structured, non-disguised type of questionnaire. Advantages of using structured, non-disguised questionnaires are: It helps in gathering relevant information. It can be administered easily. The precise and specific information is collected.

43

DATA - ANALYSIS
Profile of the respondents: Females in different age groups Using Tomato based sauces having individual preferences for: Branded Sauces Unbranded Sauces (brought from the market) Unbranded Sauces (Home Made)

(I) USAGE PATTERN FOR SAUCES :1. TOMATO SAUCE USERS:Sample Size:-200

44

Relative percentage of customers using Tomato Based Sauces

Branded + Home Made 23.50% 50% 5.50% 98% 100% 20% 40% 60% 80% 100%

Categories

Home-Made Unbranded Branded Tomato Bas ed Sauces 0%

Relative percentage of respondents

(a) Percentage of customers using Tomato Based Sauces at their homes: - 100% (b) Percentage of customers using only Branded Tomato based Sauces: - 98% (c) Percentage of customers using Unbranded Tomato based Sauces: - 5.5% (d) Percentage of customers using Branded and Unbranded Sauces: - 23.5% (e) Percentage of customers using Home- Made Sauces: - 50%

(II) REASONS FOR USING HOME-MADE SAUCES

Why Home-Made Sauces
Others 1% 6.50% 22% 5.50% 5% 10% 15% 20% 25%

Reasons

Taste Hygeine Cheaper 0%

Relative Percentage of respondents

45

Out of 200 respondents, only 50 households prefer Home- Made sauces because they are more hygienic as compared to the ones available in the market.

Duration Of Making Home-Made Sauces

Depend on cost of Tomatoes Branded not available Seas onal 2% 10% 8% 62% 18%
0% 10% 20% 30% 40% 50% 60% 70%

26%

Duration

Weekends Occasion Once in 6 months

Relative percentage of customers

46

(III) User Category Identified On The Basis of Current, Past, Never And One-time Users for Maggi Sauces. (Sample Size:-200)

Relative Percentage of Customers Using Tomato Based Sauces

One-Time Users
Tomato Based Sauces 9.00% 18.00% 32%

Never Users Past Users

51%

Current Users
0% 10% 20% 30% 40% 50% 60%

Percentage of customers

One time user category (9%), as defined by the respondent, is either included in the past user category or never category. One-Time user, who identifies him self as past user, is the one who is able to recall the brand/product on various attributes.

47

(IV) User Category Identified On The Basis of Income Groups (Size: - 200)

Relative Percentage of Customers in Different income groups

25000 + Income Groups 15000-25000 10000-15000 20% 5000-10000
0% 10% 20% 30% 40% 50%

19.00% 15.50% 46%

Percentage of customers

Categorization on the basis of income groups (Rs.) is as follows: Lower income Group- 5000 to 10000; Middle income group-10000 to 15000 Higher Middle income group- 15000 to 25000; Upper Middle Income Group-25000 & above

48

(V) RELATIVE AWARENESS OF DIFFERENT BRANDS AMONG THE RESPONDENTS IN VARIOUS INCOME GROUPS (Sample Size:-200)

AWARENESS LEVELS FOR VARIOUS BRANDS

VOLFARM TOPS 9% 14% 39.50% 39.50% 97.50%

BRANDs

NAFED HEINZ KISSAN MAGGI

97%

0%

20%

40%

60%

80%

100%

Relative percentage

Highest awareness is for Kissan as well as Maggi Sauces among the respondents.

49

(VI) FACTORS INFLUENCING SAUCE PURCHASE (AS PER DIFFERENT INCOME GROUPS): (A) INCOME GROUP (5000-10000)
The study for this particular group can be further sectored on the following criteria: Differentiation on the basis of preferences for branded, unbranded & Home Made Sauces along with respondents using more than one brand of sauces.(fig.A.1) Differentiation on the basis of current, past & never users of Maggi Sauces. (fig.A.2) Identifying the customers on the basis of various physical attributes, e.g., Extent of Promotional Schemes, (fig.A.3)

Analysis on the basis of income group (5000-10000) Vs Tomato Based Sauces

More Than One Brand Branded + Home Made+Unbranded Branded + Home Made Home Made 0.00% 10% 65% 2.50% 22.50%

32.50%

Sauces

Tomat o Based

Unbranded Branded 0%

10% 20% 30% 40% 50% 60% 70%

Relative Percentage of customers

NO OF RESPONDENTS: 38; (fig.A.1)

As can be seen from the graph, the branded user category is the highest (65%) whether its for Maggi or any other brand of Tomato Sauces, followed by, users consuming more than one brand of Sauces.

50

Analysis on the basis of income group(5000-10000) Vs Tomato User Category-Current,Past,Never

User Category
Never Users Past Users Current Users 0% 10% 20% 30% 20.00% 40% 40% 40% 50%

Relative Percentage of Customers

NO OF RESPONDENTS -38;
another brand because of non- availability and vice-versa for other brand.

(fig.A.2)

Both the current users as well as the past users are in equal proportion as customers shift from Maggi to

51

Ex te nt o f P ro m otiona l S ch e m e s V s.In com e G rou p(5000-10000)

S tro n g ly In flu e n ce s 3 0 .00 % 20 .0 0 % 12 .5 0 % 1 7 .5% 15% 5% 10 % 15% 20 % 25% 30% 35%

Influence of promotions

Fa irly In flue n ce s Mo d e ra te ly In flue n ce s In flu en ce s to s om e Exte n t N o In flu e n ce At All 0%

Re la tive P e rce n ta g e of Cu sto m e rs

NO (fig.A.3)

OF

RESPONDENTS

-38;

Promotional Schemes have a strong influence on the purchase of Sauces as a product.

52

(B) INCOME GROUP (10000-15000)

The study for this particular group can be further sectored on the following criteria: Differentiation on the basis of preferences for branded, unbranded & Home Made Sauces along with respondents using more than one brand of sauces.(fig.B.1) Differentiation on the basis of current, past & never users of Maggi Sauces. (fig.B.2) Identifying the customers on the basis of various physical attributes, e.g., Extent of Promotional Schemes, (fig.B.3)

User Category Vs Income Category (10000-15000)

More Than 1 Brand Branded + Unbranded + Home Made Branded + Unbranded Unbranded + Home Made Branded + Home Made 3% 3% 0% 20.88% 1.09% 0%

59.34%

User Cate gory

Home Made Unbranded Branded 0 %

71.43% 20 % 30 % 40 % 50 % 60 % 70 % 80 %

10 %

Relative percentage of customers

NO OF RESPONDENTS 90; (fig.B.1)

Branded tomato sauces maintain their position at 71.43% followed by prevalence of more than one brands.

53

Usage Category Vs Income Category (10000-15000)

One-time Users Never Users Past Users Usage Category Current User
0% 10%

10.99% 19.78% 35.16% 45.05% 20% 30% 40% 50%

Relative Percentage of customers

NO OF RESPONDENTS

-90

Maggi Sauce continues to occupy its market position in comparison to other players as far as current users are concerned.

Extent of Promotional Schemes vs. Income Group (10000-15000)

P r Influ o ence m of o ti o n s
Strongly Influences Fairly Influences 15.38% 17.58% 16.48% 5% 10% 15% 20% 25% 30% 24.18% 25.27%

Moderately Influences Influences to some Extent No Influence at All 0%

Relative Percentage of Customers

NO OF RESPONDENTS -90; (fig.B.3)

The promotional Schemes have a strong influence on this category as well with a relative percent of 24.18%, however, this percentage is less as compared to the one in the income group of 5000-10000.

54

(C) INCOME GROUP (15000-25000)

The study for this particular group can be further sectored on the following criteria: Differentiation on the basis of preferences for branded, unbranded & Home Made Sauces along with respondents using more than one brand of sauces.(fig.C.1) Differentiation on the basis of current, past & never users of Maggi Sauces. (fig.C.2) Identifying the customers on the basis of various physical attributes, e.g., Extent of Promotional Schemes, (fig.C.3)

User Category Vs Income Category(1500025000)

48.38% 3.22% 3.22% 0% 22.58% 0.00% 0% 70.96%

More Than 1 Brand Branded + Unbranded + Home Made Branded + Unbranded Unbranded + Home Made Branded + Home Made

User Cate gory

Home Made Unbranded Branded 0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

Relative percentage of customers

55

NO OF RESPONDENTS: 30; (fig.C.1)

Branded category of Sauces shows high prevalence followed by the usage of more than one brands.

56

U sage C ate gory Vs Income G roup(15000-25000)

Usage Category
N e ve r U s e rs P a s t U s e rs C u rre n t U s e r 0% 10% 20% 30% 40% 50% 9 .6 7 % 3 2 .2 6 % 5 8 .0 6 % 60% 70%

Re la tive P e rce nta ge of custom e rs

NO OF RESPONDENTS: 30; (fig.C.2)

Current users are higher with relative percentage of 58.06% followed by past users with 32.26%.

E xten t o f P ro m o tio n al S ch e m e s V s.In co m e G ro u p (1500 0-25000)

S tro n g ly In flu e n ce s 1 9 .3 5 % 1 6 .1 2 % 1 5 .8 0 % 1 2 .9 0 % 2 2 .5 8 % 5 .0 0 % 1 0 .0 0 % 1 5 .0 0 % 2 0 .0 0 % 2 5 .0 0 %

Influence of promotions

Fa irly In flu e n ce s Mo d e ra te ly In flu e n ce s In flu e n ce s to s o m e E xte n t N o In flu e n ce At All 0 .0 0 %

Re la tive P e rce n ta g e o f Cu sto m e rs

NO OF RESPONDENTS 30; (fig.C.3)

Price, here has no influence at all over this category, i.e. customers look forward to the quality rather than the cost of the product.

57

(D) INCOME GROUP (25000+)

The study for this particular group can be further sectored on the following criteria: Differentiation on the basis of preferences for branded, unbranded & Home Made Sauces along with respondents using more than one brand of sauces (fig.D.1) Differentiation on the basis of current, past & never users of Maggi Sauces. (fig.D.2) Identifying the customers on the basis of various physical attributes, e.g., Extent of Promotional Schemes, (fig.D.3)

User Category Vs Income Category(2500+)

More Than 1 Brand Branded + Unbranded + Home Made 0% Branded + Unbranded 0% Unbranded + Home Made Branded + Home Made Home Made Unbranded Branded 2.63% 0% 0% 26.30%

60.50%

User Category

68.40%

0.00% 1 0.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00%

Relative percentage of customers

NO (fig.D.1 )
of home Made sauces.

OF

RESPONDENTS:

-36

Preference for branded sauces continues in this category

as well, however, there is high percentage of customers using more than one brand along with the usage

58

Tomato Users Vs Income Group (25000+)

10.50% Never Users 26.3% Past Users 63.2%

To Us mat ero s bas ed

Current User 0.0% 20.0% 40.0% 60.0% 80.0%

Relative percentage of customers

NO OF RESPONDENTS -36

(fig.D.2)

The graph shows high percentage of current users of Maggi sauces with relative percentage of 63.2% followed by past users. The reason for not using the brand, in this category, currently comes out be nonavailability of fresh stock as well as reduced presence of promotional schemes.

E xtent of P romotional S chemes V s.Income Group(25000+)

Strongly Influences 21.05% 13.1 5% 18 .42% 26.3% 15.79%

Influence of promotions

Fairly Influ ences Modera tely Influences Influences to s o m e Extent N o Influen ce At All

0.00% 5.00% 10.00% 1 5.00% 20.0 0% 25 .00% 30.00%

Re la tive P e rce nta ge of Custom e rs

NO OF RESPONDENTS -36
59

Since there is reduced visibility of promotional schemes, therefore, these schemes influence to a certain extent.

(VII) SCENARIO OVERALL KHANNA (in relation to category of Users)

Type of Sauce Users
Branded + Unbranded 2.06% 54.12% 3.09% 23.20% 0.51% 2.06% 71.65%

User Category Identified

More thane one brand Branded+Home-Made+Local Branded+ Home-Made Home-Made Unbranded Branded 0%

10% 20% 30% 40% 50% 60% 70% 80%

relative Percentage of users

NO. OF RESPONDENTS: 194

As can be seen from the graph, there is a strong favour for the branded category. Also, the customers have the preference for more than one brand of sauces.

SCENARIO OVERALL KHANNA (in relation to category of Users - Current, Past & never users)

60

Maggi Sauce Users

One-Time Users

5.15% 17.01% 35.05% 51.03% 60%

User Categor y

Never users Past Users

Current Users

0%

10% 20% 30% 40% Relative Percentage of Users

50%

NO. OF RESPONDENTS: 194

Maggi Sauces are being used by majority of the households (51.03%). One-Time users include those categories of sauce users who can now be included in the never user Category

(VIII) INFLUENCE OF DIFFERENT ATTRIBUTES ON PURCHASE OF SAUCES. (A) PRICE

61

Price Influence on purchase

Strongly Influence 13.92% 14.95% 15.46% 29.90%

Influence Parameters

Fairly Influence Moderately Influencee Influence to some Extent Doesn't influence at all 0% 5% 10% 15%

25.77% 20% 25% 30%

Relative percentage of customers

NO. OF RESPONDENTS: 194

Price influences to some extent for the respondents.

(b) AVAILABILITY
Availability influence on Purchase
26.48% Strongly Influence 18.92% 15.68% 25.95% 12.97% 5% 10% 15% 20% 25% 30%

Influence parameters

Fairly Influence Moderately Influencee Influence to some Extent Doesn't influence at all 0%

Relative percentage of customers

NO. OF RESPONDENTS: 194

(c) QUALITY

62

Quality influence on Purchase

71.13% Strongly Influence

influence Parameters

Fairly Influence Moderately Influencee Influence to some Extent Doesn't influence at all 0% 10% 3.61%

12.88%

6.19% 6.19% 20% 30% 40% 50% 60% 70% 80%

Relative percentage of customers

NO. OF RESPONDENTS: 194

Quality, as an attribute, has major contribution towards the selection of sauces as a product.

(d) FAMILY PREFERENCE

63

Family Preference influence on Purchase

54.64% Strongly Influence

influence Parameters

Fairly Influence Moderately Influencee Influence to some Extent Doesn't influence at all 0% 10.82% 7.22% 7.22% 10% 20%

20.10%

30%

40%

50%

60%

Relative Percentage of Customers

NO. OF RESPONDENTS: 194

Family has a strong influence over the purchase of sauces.

64

(e) VALUE FOR MONEY

Value for money influence on Purchase
44.85%

Influence Parameters

Strongly Influence Fairly Influence Moderately Influencee Influence to some Extent Doesn't influence at all 0% 8.25% 10% 20% 30% 40% 50% 17.53% 12.37% 17.01%

Relative Percentage of customers

NO. OF RESPONDENTS: 194

This attribute is associated with Quality and has major influence over the purchase.

65

(IX) PERCEPTION OF BRANDS

ATTRIBUTE SCORE GIVEN TO MAGGI BY CURRENT USERS

Attribute Rating For Maggi Sauces

Quality Thickness Strongly Dislike Somewhat Dislike Indifferent Somewhat Like Strongly Like

Attributes

Spiceness Sweetness Colour Apperance Taste 0% 20% 40% 60% 80% 100%

Relative Percentage

NO. OF RESPONDENTS: 105

Maggi Sauces enjoys maximum market for its Taste and Quality (62.35% and72.38%) respectively. Also, it has somewhat preference for its spiceness and sweetness

66

MAGGI SOUPS/ PICKLE USERS

Percentage of Maggi Soups/Pickle Users

, Users, 73.01% Non- Users, 26.98%

NO. OF RESPONDENTS: 189

In comparison to Maggi Sauces, Maggi Soups as well as pickles are liked by majority of the respondents whether or not they are using Maggi Sauces.

67

ATTRIBUTE SCORE GIVEN TO KISSAN BY CURRENT USERS

Attribute Rating For Kissan Sauces

Quality Thickness

Strongly Dislike Somewhat Dislike Indifferent Somewhat Like Strongly Like

Attributes

Spiceness Sweetness Colour Apperance Taste 0% 20% 40% 60% 80% 100%

Relative Percentage

NO. OF RESPONDENTS: 96
Kissan, on the other hand, is liked by majority of the respondents on all of its aspects be it Quality, Taste, Spiceness or Sweetness.

68

KISSAN SQUASH/ JAM USERS

Percentage of Kissan Squash/Jam Users

Users, 78.72% , Non- Users, 21.27%

NO. OF RESPONDENTS: 188

Kissan squashes/ jams are also being consumed in maximum households when compared to Kissan sauces. (According to the data obtained only 96 respondents agreed to the consumption of Kissan sauces whereas Kissan squashes/ jams are being purchased by 188 respondents).

(X) INFLUENCE OF PURCHASER-USER RELATIONSHIP

69

Purchaser-User Relationship

Imli

Varients

Masala Chilli Chilli Garlic Hot & Sweet Tomato Ketchup 0% 10% 20% 30% 40%

Others Children Husband Self

Decision-Influencers

NO. OF RESPONDENTS: 166

The decision to purchase Maggi Tomato ketchup is highly influenced by the respondent herself as well as the children. Also, the decision to purchase Chilli Garlic and Hot & Sweet sauces are highly influenced by her husband.

70

Varients Decision Influencers Tomato Ketchup Hot & Sweet Chilli Garlic Masala Chilli Imli

Self 31.93% 11.45% 1.20% 2.41% 1.81%

Husband 21.08% 12.05% 4.82% 4.21% 3.01%

Children 31.32% 31.32% 4.82% 3.01% 3.61%

Others 12.05% 3.01% 3.61% 3.01% 2.41%

(XI) SAUCE CONSUMPTION: BRAND SATISFYING VARIOUS PURPOSES

Time Of Usage
Special Occassions To Children
Imli Masala Chilli Chilli Garlic Hot & Sweet Tomato Ketchup

Purpose

To Elders Snacks Cooking Breakfast 0% 10% 20% 30% 40% 50%

varients

NO. OF RESPONDENTS: 166

Maggi Tomato Ketchup is utilized for various purposes for satisfying various needs followed by Maggi Hot and Sweet sauces.

71

Varients Decision Influencers Tomato Ketchup Hot & Sweet Chilli Garlic
Masala Chilli Imli

Breakfast Cooking Snacks To Elders 46.99% 8.43% 1.20%

1.20% 0%

To Children 32.53% 4.82% 0.60%

0.60% 2.41%

Special Occasions 35.54% 13.85% 7.23%

9.04% 8.43%

24.09% 9.04% 6.02%

3.01% 4.82%

40.36% 32.53% 13.25% 1.20% 5.42%

5.42% 6.02%

0.60%
2.41% 1.81%

(XII) CHILDREN LIKING FOR MAGGI SAUCES.

Children Preferences for Maggi Sauces

Preferences

Not Applicable

13.77%

Disliking

6.59% 79.64%

Liking 0% 10% 20% 30% 40% 50% 60% 70% 80%

Reletive Percentage of preference

NO. OF RESPONDENTS: 167 NOT APPLICABLE refers to the households where either the children are too young to give their preference or they are included in the adult category.

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(XIII) REASONS FOR HAVING PREFERENCE TOWARDS MAGGI SAUCES

Reasons for liking Maggi Sauces by children
Maggi Noodles 87.43% 29.94% 28.74% 68.26% 20% 40% 60% 80% 100%

Reasons

Its Different Association with fun Good Taste 0%

NO. OF

relative percentages for preferences

RESPONDENTS: 167
Children prefer Maggi Sauces because they associate Maggi Sauces with Maggi Noodles whereas 68.26% like it because of its good taste.

(XIV) IMPACT OF ADVERTISEMENTS ON THE PURCHASE OF MAGGI SAUCES

Advertisement Efficacy/Recall
Remember seeing the Advertisements, 76.84%

, Doesnot not remember, 23.95%

NO. OF RESPONDENTS: 167

Maggi advertisements are potential enough to leave an impression in the minds of the customers as approximately 77% respondents are able to recall the advertisements.

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(XV) PRODUCT RECALL: IMPACT OF THE ADVERTISEMENT

Perception of Products Advertised Products Advertised

Can't Say Maggi Noodles Imli Chilli Hot & Sweet Tomato Ketchup
0% 10% 20% 30% 40%

19.76% 2.99% 8.98% 12.57% 16.77% 41.32%

50%

Relative percentage of Respondents

NO. OF RESPONDENTS: 167

Approximately 42% respondents recalled Maggi Tomato ketchup whereas 17% said it was the advertisement for Maggi Hot & Sweet.

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(XVI) COMMUNICATION BY ADVERTISEMENTS: UNAIDED RECALL OF PUNCH LINE

Punch-Line recall
Able to recall, 34.73%

Not Able to recall, 65.27%

NO. OF RESPONDENTS: 167 Though 77% of the respondents were able to recall the advertisements, 66 %( approx.) Were not able to recall the communication made by that advertisement. (XVII) SOURCES OF AWARENESS OF ADVERTISEMENTS

Sources of Advertisements
Press 7.18% 5.99% 83.83% 20% 40% 60% 80% 100%

Sources

Hoardings T.V 0%

Relative percentage of respondents

NO. OF RESPONDENTS: 167

Respondents who visualized the advertisement of Maggi sauces on TV are: - 84% (approx.) Respondents who visualized the advertisement of Maggi sauces in Press are: - 7% (approx.) 75

Respondents who visualized the advertisement of Maggi sauces on Hoardings are: - 6% (approx.)

(XVIII) IMPACT OF THESE ADVERTISEMENTS

Impact of Advertisements on Buying
Favourable,
69.46% ,

Unfavourable,
30.84%

NO. OF RESPONDENTS: 167

Impact was favourable for the products, especially, Maggi Tomato Ketchup & Maggi Hot & Sweet as 70% of the respondents agreed to buy more after seeing these advertisements.

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(XIX) PREFERENCE FOR VARIOUS PROMOTIONAL SCHEMES

Preference for Promotional Schemes
More Quantity at same price Discounts/price-off
39.52% 49.70%

Sch eme s

P r o m o ti o n a l

Gifts
0% 10% 20% 30%

30.54% 40% 50%

Relative percentage of preference

NO. OF RESPONDENTS: 167

Discounts/ Price-off is the most worthy Promotional Scheme, as told by the respondents. Following this is more quantity at same price.

(XX) INFLUENCE OF VARIOUS PROMOTIONAL SCHEMES ON PURCHASE

Influence of Promotional Schemes on Purchase

Buying M ore, 73.05%

, Not Buying M ore, 26.95%

NO. OF RESPONDENTS: 167

The promotional Schemes have the favourable response on the respondents, as 73% of the 77

respondents agree to buy more.

(XXI) SOURCES OF AWARENESS OF PROMOTIONAL SCHEMES

Sources of Awareness of Promotional Schemes
P.O.P Radio 3.59% 4.19% 1.80% 13.17% 43.11% 40.72% 89.82% 80% 100%

Sources

Hoarding M agazine Shopkeeper Newspaper T.V . 0%

20%

40%

60%

Relative percentage of respondents

NO. OF RESPONDENTS: 167

Approximately 90% of the respondents find TV as one of the most important promotional tool. Whereas, only 40% find newspaper as the informative promotional tool.

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(XXII) BRAND LOYALITY TOWARDS MAGGI SAUCES

Percentage of Brand Loyals

, Brand Switchers, 41.91%

Brand Loyal, 58.08%

NO. OF RESPONDENTS: 167

Maggi sauces continue to hold its position as 58% of the respondents continue to buy Maggi Sauces even if there is a promotional scheme on some other brand. Also, the respondents who said that they will be shifting to other brands because of the promotional schemes, will shift only if the other brand is Kissan

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(XXIII) PRIDE ASSOCIATED WITH MAGGI SAUCES

Pride Associated with Maggi Sauces

Respondents feeling P ride, 74.85% , Not feeling P ride, 18.56%

Can't Say, 6.59%

NO. OF RESPONDENTS: 167

75% of the respondents feel pride in serving Maggi Sauces to their guests and associate this with prestige issue.

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(XXIV) REASONS FOR NOT PURCHASING MAGGI SAUCES (AS GIVEN BY THE NEVER USERS)

Reasons for not using maggi Sauces (as given by never users)
Its perf ect No Specif ic reason Thickness Bad w ord of mouth 3.33% 3.33% 0% 16.67% 33.30% 6.66% 6.66% 13.30%

Reasons

Not liked by f amily Never f elt need of trying maggi satisf ied w ith Current brand Poor Taste Non-A vailability Poor Quality Prices too high 0%

5% 16.67% 16.67% 5% 10% 15% 20% 25% 30% 35%

Relative percentage of respondents

Among the Never users and One-time users, 33% does not like the taste of Maggi Sauces (mainly because of the presence of garlic and onions in it). Also, 17% feel it has poor packaging. (They associate Quality with packaging) whereas 17% are satisfied with the current brand they use.

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REASONS FOR NOT PURCHASING MAGGI SAUCES (AS GIVEN BY THE PAST USERS)

Reasons for Not Purchasing maggi Sauces(As given by past Users)

No Specific reason Thickness Bad w ord of mouth 5% 2.50% 1% 2.50% 5% 12.50% 6.25% 12.50% 37.50% 12.50%

Reasons

Not liked by family Never felt need of trying maggi satisfied w ith Current brand Poor Taste Non-Availability Poor Quality Prices too high 0%

5%

10%

15%

20%

25%

30%

35%

40%

Relative percentage of respondents

Among the Past Users, 38% feel that the prices of Maggi Sauces are too high in comparison to the current brand they use whereas 7% have shifted because of the non-availability of Maggi Sauces.

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CONCLUSION
According to Marten Harper, To manage a business well is to manage its future, and to manage the future is to manage information. In todays competitive world, it is very difficult for the companies to sustain and in order to keep their hands on the pulse of both business and consumers there is a strange need to have information. In the fast moving consumer goods (FMCG) industry, it is not only difficult to get information but also very important. The most crucial part is to manage this objective in mind, the research was conducted in the 14 localities of the D khanna market and the following conclusions are drawn from the study:-

There is a considerable degree of brand loyalty (almost 60%) towards Maggi Sauces that in it indicates that people have strong admiration towards tastes and quality of Maggi sauces. The advertisement of Maggi Hot n Sweet Sauce has a strong recall in the minds of consumers and the famous statement Its Different and 2-minutesare still fresh in their minds. There is a very strong impact of the advertisements of Maggi on the minds of consumers as approximately 100% consumers are aware of Maggi Sauces. In case of preference for promotional schemes approximately half of the consumers have stated their liking towards Price-Off followed by Gifts and Incentives. It has been observed in most of the cases that the decision to purchase sauces is the joint family decision whereby children are playing a major role for purchasing sauces. Promotional Schemes have a strong degree of influence on the purchasing decision of consumers in all the income groups. 83

 Kissan is a strong competitor for Maggi Sauces. Also, threat is posed off from some domestic players on account of low price and more distribution and availability Heinz repositioning strategy is also playing a major threat to Maggi Sauces. There is an emerging trend among the consumers for using more than one brand of sauces (as told by more than half of the respondents), one for household and other for special occasions and consumers use Maggi Sauce for this purpose as its add to their prestige. 75% consumers feel pride in serving Maggi sauces to their guests, a strong image for the company. Past Users of Maggi Sauces (35%) feel that Maggi sauces should be relaunched with reduced prices, better packaging, and improved quality along with more no. of promotional schemes.

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SUGGESTIONS
Market oriented thinking is a necessity in todays competitive world. In many places, there are too many goods chasing too few customers. Most of the companies are competing to enlarge their share of existing market. In the end, the companies best satisfy their customers will be winners. It is special responsibility of marketers to understand the needs and wants of market place and to help their companies translate them into solutions that win the customers approval. Todays smart companies are not merely looking for sales; they are investing in long term, mutually satisfying customer relationships based on delivering quality, service and value. Keeping this objective in mind following suggestions can be made: -

Nestle should stress more on advertising its products, i.e. Maggi Masala Chilli, Maggi Chilli Garlic and Maggi Tomato Ketchup.

They should also improve the availability of their products; introduce the varients without onions and garlic.

They can relaunch their products by reducing the prices supported with more of promotional schemes, free-samples/sachets.

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SWOT ANALYSIS FOR MAGGI SAUCES

STRENGTHS
Strong brand identity among consumers; especially through Maggi Noodles. Available in varieties of flavours.

WEAKNESSES
A low overall marketing effort. Has placed its components at higher prices in comparison to Kissan which is the major threat to Maggi Sauces. Poor packaging Less number of promotional schemes. Non-availability of fresh stock in the market. Price-Quantity trade-off is not taken care off.

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OPPORTUNITIES
Widely untouched rural market. Associations with major fast food chains (MNCs)/food shows. Associations with companies dealing in cooking ware, like, microwave oven. Should introduce more flavours, like ones without onion and garlic. Make the bottle handy with widened mouth so that it can become mobile. Create more uses and more demands

THREATS
Loyality reducing among customers. Threat from local and low priced entrants/substitutes. Threat from Home Made Sauces. Unable to create repeated purchases.

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QUESTIONNAIRE
OBJECTIVE: - To study the brand preference of Maggi Tomato Ketchup. 1. Name: 2. Sex: Male Female 3. Family Monthly Income: 5000-10000 10000-15000 15000-25000 25000 and above 4. Location: 5. Age: 15-25 25-35 35-45 45 and above

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6. Family type: Joint Nuclear 7. Yes No 8. Which type of sauce do you prefer? Branded Home made Unbranded Branded+ home made Tomato based sauces 9. Which brand you prefer the most? Maggi Kissan Heinz Tops Volfram Do you consume tomato ketchup?

10. Have you ever used Maggi Tomato Ketchup? Yes 89

No 11. If no, it is because: Lack of awareness Lack of availability You find it expensive You dont like the product. 12. You came to know about Maggi Tomato Ketchup from : Newspaper advertisements Radio T.V. advertisements Word of mouth Hoarding Magazine Shopkeeper 13. Have you tried new variants of Maggi Tomato Ketchup after viewing the advertisements? YES No

14. What is the level of discounts /offers available with Maggi Tomato Ketchup? High Medium Low

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15. Which of the offers available influence you the most to purchase Maggi Tomato Ketchup? Discounts offer Buy one get one Combo packs Other 16. Is Maggi Tomato Ketchup easily available to you? Yes No 17. From where do you usually purchase Maggi Tomato Ketchup? Nearby store Retail store Whole seller

18. Which flavor of Maggi Sauces you like the most? Tomato Ketchup Hot & Sweet Chilly garlic Hot & sweet Masala chilly Imli

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19. What is the size of Tomato Ketchup you usually purchase? Pichkoo Pack 200 g 600 g 1kg

20. Price Quality

Tick

the

level

of

importance

according

to

your

preference:

Attribute Very important moderately important Least important?

Availability Family preference Value Thickness for money

Signature:

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BIBLIOGRAPHY
www.nestleindia.com www.rediff/rediffonthenet/businessews/saucier.htm

www.marketreports.co.uk./marketreports/business/condimentsandsauces.htm www.gdfoods.com/toppingitup/food&Bev/cateterer.html

www.maggime.com (accessed on 15th March04) Kotler philipMarketing Management, PHI (11th Ed) PP. 396,404-5.

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