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e especially want to thank Sir S. Atul for
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 older for a while .internal efforts and some
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d holds great promise for the future. The brand
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business. While NESTLE PURE LIFE

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and office consumption) in July 2000 in
mising market segment. The results are very
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le, with a worldwide network of centres in 17
her food company dedicates so many human
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and the renovation of existing ones. Year
million Swiss francs into R&D as a major
to strengthen the Company's brands
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n and renovation.

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milk in the market in 2003 and then came the

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plaints
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ney from its product sales?

estle seldom make donations o non- profit
tions.

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m which we collect milk and we have a special
ct animals against epidemic diseases.

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rs. The WHITE color is the chief color to

of product?
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RL CONTINENTAL Pakistan.

products?
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mpany?
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s 40% of the product.

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iolating the “International Marketing Codes”.
g wrong and unethical in the way it markets is
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aimed that company marketing is causing
of babies, largely among poor because they do
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life.

accepts that the international code and the

Assembly Resolutions are minimum

will make required changes to bring its Baby

e into line with International Code and
 UILD ON
TO COVER ON
------- TO CAPTURE
DEFEND ON

at it includes a culture that is team focused

cus on collectivism and performance
es employees to work harder. Another thing is
people all over the world trust and recognizes
h is that people trust on Nestle. It looks at
ating existing products and innovating new
ow cost operators which allow them to not
ng ahead operating excellence, innovation,
d communication are major strengths. IT is an
und the world are becoming more conscious
Nestle.

at it is entering into markets that are already

tition to new entrants. Nestle Plain Yogurt
because it has been unable to make its market
zing the sensitive areas can overcome its

rtunity for expanding its markets because in

ket of food and beverages due to trends of
as opportunities largely in China and India as
search Nestle can cash on to these

dwide community due to its violation of

Many conferences and campaigns have been
hich can damage the name and trust of its
the increasing popularity of its competitor
markets.

ood and beverage company with its mission

akistan the majority of which are popular and
s installing new plants and importing latest
, innovation is one of its greatest strengths so

es for Pulsar 22occ | DR, ADR, GDR, IDR »

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Friday, May 21, 2010

NESTLE PROJECT

TABLE OF CONTENTS

SERIAL #

PARTICULARS
PAGE #
01
TABLE OF CONTENTS
02
02
ACKNOWLEDGMENT
03
03
INTRODUCTION TO NESTLE
04
04
HISTORY OF NESTLE
05
05
VISION OF NESTLE
07
06
MISSION STATEMENT & OBJECTIVES OF NESTLE
08
07
ORGANIZATIONAL CHART
09
08
BRANDS
11
09
EARNINGS
12
10
SWOT ANALYSIS
13
11
MARKETING
14
12
STRATEGIES ADOPTED BY NESTLE
15
13
COMPANY ENVIORNMENT
20
14
CO-OPERATE GOVERNANCE
21
15
PORTER FIVE FORCES ANALYSIS OF NESTLE
22
16
APPENDIX
23

ACKNOWLEDGEMENT
First and foremost, we would like to thank Almighty Allah for giving us the ability and
strength to complete this project. Secondly, we are also thankful to our respective parents
for providing us with the opportunity to receive higher education in such an
accomplished institution that required us to carry out such projects that expand the
dimensions of our mind. We are definitely not forgetting to recognize the efforts and
support of our teacher SIR S.M FAHEEM, without whom this project would not have
been possible. Who give us the opportunity to work on a project, which not only enlarged
our vision but also show, us the real picture of the market Management? Our special
thanks to the group members, who have whole-heartedly work for the completion of this
report. All of us have earned a valuable and worthy experience during the project.

INTRODUCTION

Nestlé was founded in 1867 by pharmacist Henri Nestlé on the shores of Lake Geneva in
Vevey, Switzerland. One hundred and thirty-four years later, our headquarters are still in
Vevey, surrounded by the Swiss Alps in one of the world’s best-preserved environmental
settings. As they have grown from humble beginnings into the world’s largest food
company, they have attempted to take the fundamental cultural values of environmental
preservation and cleanliness into every country where they operate. Company has 468
Nestlé factories currently in operation.
-Company’s facilities reflect the environmental values basic to Nestle Company.
-Top management follow the Company’s environmental performance
-Company’s Environmental Officer reports directly to General Management to ensure
there is on-going awareness regarding environmental affairs.
Nestlé Environmental Advisory Group meets regularly to review current environmental
issues and to anticipate potential concerns. This allows them to maximize control over
their activities and contribute to sustainable development in the countries where they
operate. The Nestlé Environment – Progress Report 2000 describes the results of
continuous improvement in its environmental practices and being a leader in
environmental performance

HISTORY

1866-1905
In the 1860s Henri Nestlé, a pharmacist, developed a food for babies who were unable to
breastfeed. His first success was a premature infant who could not tolerate his mother's
milk or any of the usual substitutes. People quickly recognized the value of the new
product, after Nestlé's new formula saved the child's life, and soon, Farine Lactée Henri
Nestlé was being sold in much of Europe.
1905-1918
In 1905 Nestlé merged with the Anglo-Swiss Condensed Milk Company. By the early
1900s, the company was operating factories in the United States, Britain, Germany and
Spain. World War I created new demand for dairy products in the form of government
contracts. By the end of the war, Nestlé's production had more than doubled.
1918-1938
After the war Government contracts dried up and consumers switched back to fresh milk.
However, Nestlé's management responded quickly, streamlining operations and reducing
debt. The 1920s saw Nestlé's first expansion into new products, with chocolate the
Company's second most important activity
1938-1944
Nestlé felt the effects of World War II immediately. Profits dropped from $20 million in
1938 to $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, Nescafé, which was a staple drink of the US military.
Nestlé's production and sales rose in the wartime economy.
1944-1975
The end of World War II was the beginning of a dynamic phase for Nestlé. Growth
accelerated and companies were acquired. In 1947 came the merger with Maggi
seasonings and soups. Crosse & Blackwell followed in 1960, as did Findus (1963),
Libby's (1971) and Stouffer's (1973). Diversification came with a shareholding in L'Oréal
in 1974.

1975-1981
Nestlé's growth in the developing world partially offset a slowdown in the Company's
traditional markets. Nestlé made its second venture outside the food industry by acquiring
Alcon Laboratories Inc..
1981-1995
Nestlé divested a number of businesses1980 / 1984. In 1984, Nestlé's improved bottom
line allowed the Company to launch a new round of acquisitions, the most important
being American food giant Carnation.
1996-2002
The first half of the 1990s proved to be favorable for Nestlé: trade barriers crumbled and
world markets developed into more or less integrated trading areas. Since 1996 there
have been acquisitions including San Pellegrino (1997), Spillers Petfoods (1998) and
Ralston Purina (2002). There were two major acquisitions in North America, both in
2002: in July, Nestlé merged its U.S. ice cream business into Dreyer's, and in August, a
USD 2.6bn acquisition was announced of Chef America, Inc.
2003 +
The year 2003 started well with the acquisition of Mövenpick Ice Cream, enhancing
Nestlé's position as one of the world market leaders in this product category. In 2006,
Jenny Craig and Uncle Toby's were added to the Nestlé portfolio and 2007 saw Novartis
Medical Nutrition, Gerber and Henniez join the Company.

“VISION”
Nestlé aim is to meet the various needs of the consumer every day by marketing and
selling food of a consistently high quality.
The confidences that consumers have in our brands is a result of our company’s many
years of knowledge in marketing, research and development, as well as continuity -
consumers relate to this and feel they can trust our products.
High quality and collaboration
Our objectives are to deliver the very best quality in everything we do, from primary
produce, choice of suppliers and transport, to recipes and packaging materials. Our
operations and collaboration in the Nordic countries gives us greater opportunities to be
efficient and strategic and to function well as an organization, both when it comes to the
distribution chain and to concentrating on joint product launches and campaigns.
Vision Statement of Nestle Milkpak:
The strategic priorities of Nestle Milkpak are focused on delivering shareholder value
through the achievement of sustainable, capital efficient and profitable long term growth.
Improvements in profitability will be achieved while respecting quality and safety
standards at all times. In line with this objective, Nestle Milkpak envisions to grow in the
shortest possible time into the number one food company in Pakistan with the unique
ability to meet the needs of consumers of every age group - from infancy to old age, for
nutrition and pleasure, through development of a large variety of food categories of the
highest quality. Nestle Milkpak envisions the company to develop an extremely
motivated and professionally trained work force, which would drive growth through
innovation and renovation. It aspires, as a respected corporate citizen, to continue playing
a significant role in the social and environmental sectors of the country.

CORPORATE “MISSION”

Nestlé’s brands and products are the focus of continual innovation and renovation so that
they meet and exceed our consumers' expectations. We seek to ensure that our products
are available whenever, wherever and however our consumers want them.

OBJECTIVES
Nestlé’s purpose is to offer safe, tasty, convenient and nutritious foods to improve health
and well-being of consumers of all ages all over the world. To meet the needs and desires
of today’s and tomorrow’s consumers, Nestlé is strongly committed to Research and
Development (R&D) to improve existing products and develop new foods with specific
health benefits.

Organizational Chart

Details of activities / responsibilities which are included in the different departments

shown in the General Organizational Chart.
Zone EUR
Food & Beverages Europe
Zone AMS
Food & Beverages Americas: United States of America, Canada, Latin America and
Caribbean
Zone AOA
Food & Beverages Asia, Oceania, Africa and Middle East
Nestlé Waters
The water business is managed on a global basis.
Nestlé Nutrition
The Nutrition business is managed on a global basis.
Nestlé Professional
Strategic Business Division
Finance & Control
Group Control, Group Accounting & Reporting, Legal, Intellectual Property,
Acquisitions & Business Development, Pensions & Group Risk Services, Treasury,
Investor Relations, Audit, Tax, Global Nestlé Business Services (GNBS), F&C Business
Excellence

Strategic Business Units (SBUs) and Marketing

Strategic Generating Demand Unit, Business Excellence Generating Demand, Corporate
Wellness Unit, Dairy SBU, Coffee & Beverages SBU, Chocolate, Confectionery &
Biscuits SBU, Ice Cream SBU, Food (Culinary and Frozen food) SBU, Pet Care SBU,
Nespresso, Nescafe RTD
Innovation, Technology, R&D
Science & Research, Regulatory, PTCs and R&DCs, Innovation Acceleration Teams,
Technology Intellectual Property, Innovation Partnership Management, Packaging &
Design, Business Excellence, R&D Nestlé Waters, R&D Nutrition, R&D Nestlé Purina
Operations
Procurement, Production, Supply Chain, Engineering, Quality Management, Safety,
Health & Environment, Agriculture, Operations performance, Business Excellence
Operations, Technical Personnel Coordination, GLOBE & Business Excellence.
Pharma / Cosmetics / Human Resources
Pharmaceutical and Cosmetic products, Liaison with L’Oreal, Human Resources
Corporate Communications
Corporate Media Relations, Public Affairs, Economic and International Relations
Corporate Governance, Compliance and Corporate Services
Center Counsel, Group Compliance, General Secretariat, Group Governance

BRANDS
Today Nestlé is present in different markets with the following main brands:
Coffee
Nescafe, Nespresso, Taster’s Choice, Ricoré, Ricoffy, Bonka, Zoégas, Loumidis
Water
Poland Spring, Nestlé Pure Life, Arrowhead, Vittel, Deer Park, Levissima, Perrier,
S.Pellegrino, Ozarka, Contrex, Ice Mountain, Zephyrhills, Nestlé Aquarel, Hépar, Acqua
Panna,
Other beverages
Nestea, Nesquik, Nescau, Milo, Carnation, Libby’s, Caro, Nestomalt, Nestlé
Dairy - Shelf stable
Nestlé, Nido, Nespray, Ninho, Carnation, Milkmaid, La Lechera, Moça, Klim, Gloria,
Svelty, Molico, Nestlé Omega Plus, Bear Brand, Coffee-Mate
Dairy - Chilled
Nestlé, Sveltesse, La Laitière, La Lechera, Ski, Yoco, Svelty, Molico, LC1, Chiquitin
Ice cream
Nestlé, Antica Gelateria del Corso, Dreyer's/Edy's, Drumstick/Extrême,
Maxibon/Tandem, Mega, Mövenpick, Sin Parar/Sem Parar/Non Stop, Delta
Infant nutrition
Nestlé, Nan, Lactogen, Beba, Nestogen, Cerelac, Nestum, Neslac, Guigoz, Good Start
Performance nutrition
PowerBar, Pria, Musashi
HealthCare nutrition
Nutren, Clinutren, Peptamen, Modulen
Bouillons, soups, seasonings, pasta, sauces
Maggi, Buitoni, Thomy, Winiary,Torchin, Osem, Totole, Haoji
Frozen foods (prepared dishes, pizzas, small meals)
Stouffer’s, Lean Cuisine, Hot Pockets, Buitoni, Maggi, Wagner, La Cocinera
Refrigerated products (cold meat products, dough, pasta, pizzas, sauces, snacks)
Nestlé, Buitoni, Herta, Toll House, Sabra
Chocolate, confectionery and biscuits
Nestlé, Crunch, Cailler, Galak/Milkybar, Kit Kat, Smarties, Butterfinger, Aero, Polo
Nestlé Professional
Chef, Davigel, Minor’s
Petcare
Purina, Friskies, Fancy Feast, Alpo, Gourmet, Mon Petit, Felix, Dog Chow, Cat Chow,
Pro Plan, Purina ONE, Beneful, Tidy Cats

EARNINGS
In 2003, consolidated sales were CHF87.979 billion and net profit was CHF6.213 billion.
Research and development investment was CHF1.205 billion.
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.
Sales by geographic area breakdown: 32% from Europe, 31% from Americas (26% from
US), 16% from Asia, 21% from rest of the world.

SWOT ANALYSIS

“STRENGTH”
It’s a company that does not depend on personalities.
Leaders in Dairy Products.
Long term experience.
Innovative products.
Designative packaging.
Innovative planning and ideas.
Wide variety of brands.
“WEAKNESSES”
Supply Chain
Exports
“OPPORTUNITIES”
High credibility
Ability to secure more credit.
Available means for expansion.
Improving trends
Industry leadership.
Consumer preference.
Fewer competitors.
Dedicated workforce
Untapped rural market.
“THREATS”
Highly competitive market (multinational companies are very organized and financially
strong).
Increasing prices of raw materials.
Competitors like Haleeb, Halla, Askari, Pure water, Nurpur dairies, and Prime yogurt.

MARKETING

Nestle hold strong reputation for high quality brands. In major markets, trade marketers
are frequently rated highly in customer surveys on professionalism and service. They
don't believe in 'one brand fits all', but with a strong, diversified global portfolio – well
focused and defined – offers a brand for all key consumer and market sectors.
They aim to satisfy consumers' demands, better and more profitably than their
competitors.

STRATEGIES ADOPTED BY NESTLE

Business principle:
Nestlé is committed to the following Business Principles in all countries, taking into
account local legislation, cultural and religious practices:
Nestlé's business objective is to manufacture and market the Company's products in such
a way as to create value that can be sustained over the long term for shareholders,
employees, consumers, and business partners.
Nestlé does not favor short-term profit at the expense of successful long-term business
development.
Nestlé recognizes that its consumers have a sincere and legitimate interest in the
behavior, beliefs and actions of the Company behind brands in which they place their
trust, and that without its consumers the Company would not exist.
Nestlé believes that, as a general rule, legislation is the most effective safeguard of
responsible conduct, although in certain areas, additional guidance to staff in the form of
voluntary business principles is beneficial in order to ensure that the highest standards are
met throughout the organization.
Nestlé is conscious of the fact that the success of a corporation is a reflection of the
professionalism, conduct and the responsible attitude of its management and employees.
Therefore recruitment of the right people and ongoing training and development are
crucial.
Nestlé continues to maintain its commitment to follow and respect all applicable local
laws in each of its markets.
Consumer perceptions and the future needs of society: As a global food manufacturer and
marketer, Nestlé takes into consideration local needs, cultural differences and consumer
preferences as well as attitudes concerning the use of ingredients derived from genetically
modified crops. Nestlé will continue to use ingredients derived from genetically modified
crops wherever appropriate.

Global commitment:
Nestlé firmly supports the principles of the United Nations Global Compact and is
committed to reflecting these in its business principles and practices. Search for trust:
Nestlé is the world's leading food and beverage company, with sales of about CHF 72
billion. It has 230,000 employees world-wide and operates 520 factories in 82 countries.
Its products are available universally, including such remote markets as North Korea, and
they are sold under a number of brands such as Nestlé, Nescafe, Nestea, Maggie, Buitoni,
Perrier and Friskies. Company belongs to more than 200,000 shareholders, today; Nestlé
is about twice the size of its nearest competitor in the food and beverage sector. The
company is in business for over 130 years. Since the days of its founder, brands have
been a mainstay of company’s development and its management strongly believes that is
one of the key elements of company success. A basic reason company has grown to be
the world's largest food company is that consumers have learned to trust its brands. The
Nestlé’s challenge was the establishment of a clear hierarchy of very few corporate
strategic global brands that now cover almost all products, as well as the parallel usage of
regional and local product brands and product denominations.
Additionally company introduced the Nestlé Seal of Guarantee and emphasized corporate
logo. This Seal of Guarantee is a visible sign of company’s corporate responsibility for
the safety and quality of every product, which leads to maintain consumer confidence and
trust in this corporation. In order to be able to give this quality and safety assurance,
company developed a Nestlé Quality Management System, which collects the experience
of our Research & Development, on which we spend CHF 800 million a year. For a
company such as Nestlé, economic success depends on winning the public's approval
every day in every country where our products are sold.
They have always believed strongly that tobacco should never be marketed to youth. It
should only be marketed to adult smokers, in an appropriate way that takes account of the
risks posed to health. They also believe adults who have chosen to smoke should be able
to receive information about what they buy, and should be able to communicate
responsibly with them about their brands.

Nestle company’s Success is built on quality :

Quality is the cornerstone of company’s success. Everyday, millions of people all over
the world show their confidence in company by choosing Nestlé products. This
confidence is based on our quality image and a reputation for high standards that has
been built up over many years.
Every product on the shelf, every service and every customer contact helps to shape this
image. A Nestlé brand name on a product is a promise to the customer that it is safe to
consume, that it complies with all regulations and that it meets high standards of quality.
Customers expect company to keep this promise every time.
Under no circumstances company compromise on the safety of a product and every effort
must be made to avoid hazards to health. People, equipment and instruments are made
available to ensure safety and conformity of Nestlé products at all times.
The customer comes first:
Company does want to win and keep customers, distributors, supermarkets, hotels,
shopkeepers and the final consumers. They have very different requirements. Trade
customers expect excellent service, correct information and timely delivery. Consumers
consider taste, appearance and price when they make their choice. Company’s task is to
understand what customers want and respond to their expectations rapidly and
effectively.
Company serves various groups of consumers and there is demand for products at
different levels of perceived quality and price. All customers expect good quality at a
reasonable price.
Customers are central to company’s business and company always respects their needs
and preferences.
Quality is a competitive advantage:
Company lives in a competitive world and must never forget that their customers have a
choice. If they are not satisfied with a Nestlé product, they will switch to another brand.
Company’s goal is to provide superior value in every product category and market sector
in which it competes.

The pursuit of highest quality at any price is no guarantee for success, nor is a single-
minded cost-cutting approach. Lasting competitive advantage is gained

from a balanced search for optimal value to customers, by simultaneous improvement of

quality and reduction cost.
Quality units at different levels of the organization provide specific support, promote
quality awareness, assume guardianship and audit the system. Quality departments
monitor operations against agreed standards and must intervene in case of non-
conformity.
Training and teamwork are crucial to the successful implementation of high quality
standards. Continuous training ensures that everyone understands his tasks and has the
necessary skills to carry them out. Teamwork allows us to achieve results that are greater
than the sum of individual efforts.
We motivate employees by demonstrating management commitment to Quality, by
setting challenging goals and by giving them responsibility and recognition. It is through
employee involvement that goals and targets can be achieved in the shortest time.
Quality must be a way of life for everyone in the company.
Progress is followed by listening to our customers and by measuring our performance.
Nestlé's Position on Gene Technology: From its inception more than 130 years ago,
Nestlé has built its business on successfully applying scientific breakthroughs and
technological innovations while taking full responsibility for the quality and the safety of
its products. Throughout these years Nestlé has been manufacturing and marketing
products tailored to meet the diverse needs and preferences of consumers all over the
world. Nestlé has always strived to respect these differences and to take them into
account in its activities. Nestlé supports a responsible application of gene technology for
food production based on sound scientific research.
Consumer information and labeling: Consumers confidence in the food they are buying is
supported by having access to information. Nestlé's Consumer Services are well equipped
to provide this access and thus are the first source of information, including the use of
ingredients, derived from genetically modified crops, in Nestlé products. Many
governments now have implemented or are considering regulations for the use

and labeling of these ingredients. In the absence of a global agreement on the labeling of
ingredients, derived from genetically modified crops, and recognizing governments
responsibility for the regulatory process, Nestlé strictly adheres to national laws and
regulations regarding their labeling.
ENVIRMENT OF THE COMPANY

MANAGEMENT
The executive board, a distinct entity from the board of directors, includes:

Peter Brabeck-Letmathe, Chairman & CEO

Carlo Donati, EVP, Chairman, and CEO of Nestlé Waters
Frits van Dijk, EVP of Asia, Oceania, Africa, Middle East divisions
Lars Olofsson, EVP of Strategic Business Units and Marketing
Francisco Castañer, EVP of Pharmaceutical and Cosmetic Products, Liaison with L'Oréal
Human Resources
Michael Powell, EVP of United Kingdoms Diivision
Paul Bulcke, EVP of Americas divisions
Paul Polman, EVP of Finance, Control, Legal, Tax, Purchasing, Export
Luis Cantarell, EVP of Europe divisions
Richard T. Laube, Deputy EVP of Nutrition Strategic Business units
Werner J. Bauer, EVP of Research and Development, Technical, Production,
Environment.

Current members of the board of directors of Nestlé are: Günter Blobel, Peter Böckli,
Daniel Borel, Peter Brabeck-Letmathe, Edward George, Rolf Hänggi, Nobuyuki Idei,
Andreas Koopmann, André Kudelski, Jean Pierre Meyers, Carolina Müller-Möhl, Kaspar
Villiger. Secretary to the Board Bernard Daniel.

Corporate Governance

Nestlé's commitment to sound Corporate Governance goes back to its very early days.
This commitment is reflected and explained in several publications, such as the Corporate
Governance Report, Articles of Association, Committee charters etc. It is also visible in
Nestlé's day-to-day business behavior.
The Corporate Governance Report covers the following areas:
Group structure and shareholders
Capital structure
Board of Directors
Executive Board
Compensations, shareholdings and loans
Shareholders’ participation
Changes of control and defence measures
Auditors
Information policy

PORTER’S FIVE FORCES ANALYSIS

Five Forces Analysis helps the us to contrast a competitive environment. We analyze

these five forces for NESTLE.
Five forces analysis looks at five key areas namely the
q Threat of entry
q The power of buyers
q The power of suppliers
q The threat of substitutes and
q Competitive rivalry

CUSTOMERS:

Favorable

COMPETITORS:

Unfavorable

SUPPLIERS:

Favorable

SUBSTITUES:

Favorable

NEW ENTRANT:

Favorable
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arketing project on 4P's of Maggi Tomato Ketchup - May 10th, 2009
EXECUTIVE SUMMARY

In 1991 we opened our country to foreign brands. As per this liberalization policy many a
foreign players ventured into our country finding it a lucrative large mass market. India’s
market potential lures foreign companies.
Many international companies that ventured in after 1991 are tallying their profits and losses
and wondering what the future holds for this market of 950 million people.
But India is a diverse country where different states have different consumption patterns and
customs. Thus competition has become the key word in today’s scenario.
Till 1970’s and 80’s Maggie and Kissan were the major ketchup brands but after
liberalization Heinz entered Indian market which offered tough competition. These major
giants are also facing competition from many local players like Tops, Cremica and other
local brands.
Through this project we have studied 4 P’s of marketing mix which includes PRODUCT,
PRICE, PLACE and PROMOTION for Maggi Tomato Ketchup.
Product highlights various attributes of the product. Price helps us in analyzing whether it is
competitively priced or not. Promotions showcases which mode of promotion is most
effective and how do consumers respond to various celebrity endorsements. Place focuses on
efficiency of distribution network of Maggi Tomato Ketchup.
We have also drawn out some inferences by applying various statistical tools like ‘SIGN
TEST’.
Towards the end we have suggested some recommendations as a group on how can we
improve the marketing mix of the product.

Nestlé, which world knows as cautious and conservatory company is a Swiss originated 140
years old Multinational. The man at the helm is Swiss national Carlo Donati, an all
inspiration and image of the company. His philosophy is ‘bottom line dictating top line’
based on delegation and decentralization. It resulted from a merger in 1905 between the
Anglo-Swiss Milk Company for milk products established in 1866 by the Page Brothers in
Cham, Switzerland and the Farine Lactée Henri Nestlé Company set up in 1867 by Henri
Nestlé to provide an infant food product.
The first Nestlé factory to begin production in the United States was opened in Fulton,
Oswego County, New York.

Nestlé India Ltd. (NIL), the Indian subsidiary of the global FMCG major, Nestlé SA,
introduced the Maggi brand in India in 1982, with its launch of Maggi 2 Minute Noodles, an
instant noodles product. Nestlé India’s business objective and that of its management and
employees is to manufacture and market the Company’s products in such a way as to create
value that can be sustained over the long term for consumers, shareholders, employees,
business partners and the national economy.

The product mix of Nestle India consists of milk products and baby products (42.5%),
beverages (29.3 %), processed foods (14.4 %), chocolate and confectionary (13.8 %). Nestle
India plans to expand business into similar and diversified product categories. The
management wants to leverage all the hard work done to establish a particular brand by
extending the brand in some other areas, where it sees an opportunity to make further money.
In other words to derive the maximum benefit from having established the brand Nestle did
exactly, what it wanted with one of their brands- Maggi.

Objective of the study

In this project, our main focus was to analyze Tomato Ketchup taking into consideration the
4 P’s of the marketing mix.
• To analyze various product attributes of Ketchups & Sauces and its management in the
current scenario.
• To study the entire distribution mix of the product line.
• To critically comment on the pricing strategy adopted by the company.
• Lastly our study will also focus on the various promotional aspect of the brand in lieu of
ketchup and also promotional mix of the product line.
All these objective were to analyze the performance of a particular product line of a brand
followed by the suggestions which we as a group have given in order to improve their
performance in the future and also learned various useful aspects which they have devised
and implemented that has bettered their performance.
Scope of the Study
The brand value of Nestle is $9.11bn which is approximately 5% of the enterprise value as in
August 2008(Source: The daily newspaper journal “The Mint” dated 17 September, 2008).
According to this report, Nestle is reported to be among top 100 brands globally positioned
at 77th place with a brand rating of “AAA”. Last year, it was positioned at 87th spot.
The ketchup market in India is estimated to be around Rs 220 crore, largely dominated by
Nestlé’s Maggi that owns 47% of the market and the Kissan that owns 26%. Globally, it's
only a blip- but India consumes about 13,800 tons of ketchup a year.
The Company launched a new variant of Maggi Tomato Ketchup called “Pichkoo”.

A higher-than-expected increase in raw material prices is posing a bigger threat for the
company as of now but past have proved that their innovative market strategies has
contributed a lot to their overall growth.
Through our study we have determined the positive and negative product attributes and thus
determined the expectations of the product. This information can be used by the company for
further product modification. We also determined the acceptability and adaptability towards
introduction of new variants.
MAGGI
Maggi is an over 100-year-old Nestlé brand of instant soups, stocks, bouillons, ketchups,
sauces, seasonings and instant noodles. The original company came into existence in 1872 in
Switzerland, when Julius Maggi took over his father's mill. It quickly became a pioneer of
industrial food production, aiming at the improvement of the nutrition of worker families.
Over time the scope of MAGGI has been extended from a predominantly dehydrated
cooking aid brand towards a general savory food brand including many types of ready meals
and also frozen food. This is in line with the fact that people all over the world are cooking
less and less from scratch.
There is a wide range of MAGGI products marketed worldwide in several countries. These
include dehydrated bouillon, granulated seasoning, soups, recipe mixes, snacks, frozen
foods, etc.
In 1863 Julius Maggi developed a formula for bring added taste to meals, which later became
lead to the beginning of Maggi and convenience food products.
MAGGI, known worldwide for innovation and quality worldwide, understands that
consumers are usually under great pressure in terms of time, budget, cooking skills etc and
therefore tries to establish a bond through giving ideas and advice that make providing food
easier. This results in the food provider being appreciated by family and friends.
Maggi as a brand is globally known in the product category of bouillon or soup cubes. Nestle
decided to introduce Maggi brand in India in the same product category. This soup was
initially test marketed in 1974 in Kerala. The response was not encouraging. Having then
realized that the dietary habits of Keralites are not conductive to the idea of drinking soup,
test marketing of the brand extended to Goa with the idea that Goan food habits have some
similarity with western habits. Fortunately for the company, the test turned out to be positive
and Maggi became an accepted brand in India.
Maggi has faced lot of hurdles in its journey in India. The basic problem the brand faced is
the Indian Psyche. Indian Palate is not too adventurous in terms of trying new tastes. That
may be the reason why we are still stuck with Idli and Sambhar.
So a new product with a new taste that too from a different culture will have difficulty in
appealing to Indian market.
As of now, Maggi is the brand for 2-minute noodles, Chinese noodles, ketchups and sauces
for Nestle. As per the latest available data, sales of Maggi 2-minute noodle in India are
highest among all other Nestle products worldwide. Analysts say Nestle, which faced one of
the most challenging years in the FMCG industry in 2003, has realised that unless it
continuously innovates in an endeavour to provide value-for-money to consumers, the
company's bottomline may be impacted in the long run.

TOMATO KETCHUP
The ketchup market in India is estimated to be around Rs 220 crore, largely dominated by
Nestlé’s Maggi that owns 47% of the market and the Kissan that owns 26%.
Upto mid eighties Kissan was the number one brand in Tomato Ketchup and around that
time the competition came from Maggi -- a Nestlé’s brand. With Maggi launching several
varieties of Tomato Ketchup there was a growth in the market. With Kissan and Maggie
fighting neck to neck other smaller but established brands like Dipy's from Herbertsons,
Volfruit from Voltas, Noga of Nagpur Orange Federation and SunSip of Wimco gradually
disappeared from the market. Delmonte now has joined hands with Paoma Industries, the
manufacturers of Rasna Brands of soft drink concentrate and is expected to launch Tomato
Ketchup shortly. The biggest global player in Tomato Ketchup Heinz is still waiting and
watching. It was expected that they will launch Tomato Ketchup in Indian market soon.
Some of the unknown local brands of course still existing only on price competition.
The price competition has also kept some of the other categories of food products still alive.
At a time when Kissan had become generic to tomato sauce, Maggi came in with its sauces
range. Maggi was the upstad newcorner who came in with a loud aggressive national burst. It
did not come in with one, but with a range of sauces in order to increase market share and
expand the market by offering more usage occasions, bring consumers with different needs
into the Maggi Sauces fold and weaning away users of different brands to Maggi. From a
market share of 14% in 1985, Maggi Sauces now enjoys a share of about 50% of the market.

MAGGI TOMATO KETCHUP

Maggi Tomato Ketchup is primarily a taste enhancer, giving the food provider taste, aroma
and also contains iodised salt.
Nestle was seriously working on brand extension to leverage brand success in some potential
product categories. The company finally decided to enter ketchup market with the brand
Maggi. Finally in 1985 when Maggi noodles had reached 4000 tonnes business, they ensured
the establishment of the brand Maggi and launched their Maggi ketchup. Market leader
Kissan was selling its ketchup in 500 gm. Nestle decided upon 400 gm bottle to give the
consumer a ‘price- point’ advantage. The main launched its product all over India. The main
focusing aspect of their advertisement was ‘what ketchup does to your food- tasty and more
palatable. It was a very clever move, which paved way for subsequent variants such as
1. Tomato Chilli
2. Masala Chilli
3. Chilli Garlic

PRODUCT LINE
• Tomato Ketchup
• Hot & Sweet
• Tomato Ketchup (With onion & garlic)
• Teekha Masala
• Tomato Chatpat
• Tomato Pudina

MARKETING MIX
Marketing decisions generally fall into the following four controllable categories:
• Product
• Price
• Place (distribution)
• Promotion
The term "marketing mix" became popularized after Neil H. Borden published his 1964
article, The Concept of the Marketing Mix. Borden began using the term in his teaching in
the late 1940's after James Culliton had described the marketing manager as a "mixer of
ingredients". The ingredients in Borden's marketing mix included product planning, pricing,
branding, distribution channels, personal selling, advertising, promotions, packaging,
display, servicing, physical handling, and fact finding and analysis. E. Jerome McCarthy
later grouped these ingredients into the four categories. These are the 4 P’s of Marketing
Mix.
These four P's are the parameters that the marketing manager can control, subject to the
internal and external constraints of the marketing environment. The goal is to make decisions
that center the four P's on the customers in the target market in order to create perceived
value and generate a positive response.

4 P’s of MARKETING MIX

Marketing decision variables are those variables under the firm's control that can affect the
level of demand for the firm's products. They are distinguished from environmental and
competitive action variables that are not totally and directly under the firm's control. It is a
great way to help us focus on the elements of a good marketing plan that we can't control but
must be aware of and anticipate such as:
- new competitors,
- new legislation,
- change in consumer confidence,
- change in consumer tastes; and
The four marketing decision variables are:
Price variables
• Allowances and deals
• Distribution and retailer mark-ups
• Discount structure
Product variables
• Quality
• Models and sizes
• Packaging
• Brands
• Service
Promotion variables
• Advertising
• Sales promotion
• Personal selling
• Publicity
Place variables
• Channels of distribution
• Outlet location
• Sales territories
• Warehousing system
The 4 Ps of marketing classify the controllable elements of your marketing plan. Product,
place [distribution] and promotion are all expenses; price brings in revenue.
MAGGI KISSAN
PRODUCT
• Available in different variants: Maggi Ketchup Maggi Hot & Sweet Sauce, Maggi Masala
Chilli Sauce, Maggi Chilli Garlic Sauce, Maggi Tamarind Sauce, Maggi Tomato Sauce
(Without onion & garlic), Maggi Tomato Ketchup (With onion & garlic), tomato chatpat,
Teekha masala, Tomato pudina.
• The product is bright red in color.
• The thickness is less as compared to Kissan.
PRODUCT
• It is available in different variants: Kissan Ketchup and Kissan Sauce (no onion no garlic),
Kissan Tomchi.
• The colour is dark red.
• The thickness is more as compared to Maggi Ketchup.
PROMOTION
• They promote their product very effectively through television,
• They have applied the strategy of brand extension.
• They also sponsor various cookery shows to promote alternate usage of products.
• They also use strategy of free product samples to promote it.
• Celebrity endorsements. Eg. Javed Jafferi PROMOTION
• Less promoted as compared to maggi.
• No particular celebrity endorsement.
• The utter confusion regarding the long-term strategy for Kissan brand was visible through
the experiments that were conducted on this brand by Hll.
• But with a brand which had a tremendous equity during the late nineties and early 2000,
HUL had weird plans. One of the major casualties of MS Banga's Power brand strategy was
Kissan. During the early 2000, the brand Kissan was rebranded as Kissan Annapurna. Kissan
Annapurna was marketing not jams and squashes by Atta, salt and other staple foods. Later
Annapurna and Kissan was splited into two separate brands , one concentrating on staple
foods and other on processed foods. This migration strategy proved to be very costly for both
Kissan and Annapurna brand.
Kissan was synonymous with Jams and Squashes during its initial years. Kissan Ketchup
was a market leader in ketchup segment but these experiments and myopic strategies pushed
the brand behind the focused and aggressive Maggi.
•
So all through the period 2001-2005, Kissan was in a sticky wicket. But now according to
reports, the brand mandarins of HUL is now clear about Kissan as a brand for processed food
like Jams , ketchups and like.
That change is visible in the recent campaign of Kissan which takes a unique view of
Ketchup. Taking the tagline " Aao banaye pakode behtar" translated to " Making Pakode
taste better". In these series of ads, the brand plays a second fiddle to the main snack. The
brand takes the positioning of a "Great Accompaniment "
PLACE
• The distribution network is well spread as it is easily available in all kirana stores, retail
store etc.
PLACE
• The distribution network is well spread as it is easily available in all kirana stores, retail
store etc.

PRICE
• Its Maggi Rich Tomatoes is priced at Rs 90 (1 kg bottle with 20% free offer) and Rs 26
(200 gm bottle). PRICE
• Its Kissan Ketchup and Kissan Sauce (no onion no garlic) are priced at Rs 91 (1 kg bottle),
Rs 49 (500 gm bottle) and Rs 60 (600 gm squeezy pack), while Kissan Tomchi is priced at
Rs 53 (500 gm).

PRODUCT LEVELS: CUSTOMER VALUE HIERARCHY

There are five segments in customer value hierarchy that is:
1. Core benefit
2. Basic product benefit
3. Expected product benefit
4. Augmented product benefit
5. Potential product benefit.

Now if we classify these heads according to our Brand “Maggi”

The “Core benefit” which Maggie provides is its instant recipe and a tag line which assures
that it is “FAST TO COOK & GOOD TO EAT”.
The “Basic product benefit” which our product provides to our target market is a good taste
with proper nutrition levels and good health, as one of its punch line says “Taste Bhi Health
Bhi”.
The “Expected product benefit” which Maggi provides is a proper and a good package which
is vacuum zed which ensures customers a good quality, fully packed seasoning tastemaker &
affordable prices.
In most of the underdeveloped and developing countries like India competition takes place in
the “expected product benefit” as Augmented product benefit stage is still to come.

PRODUCT DIFFERENTIATION
Product differentiation strategy means how a particular product is different from others on
the basis of:
1. Form
2. Features
3. Performance quality
4. Convenience
5. Durability
6. Reliability
7. Style

According to our product, the form shape, size, physical structure of Maggi is very attractive
as it is easy to carry, comes in various packs and sizes according to customers convenience.
For example “Maggi Pichkoo ketchup” packs which is a smaller quantity consumption
variant.
The various features of Maggi Tomato Ketchup are first of all its perfect taste according to
the Indian touch & spices, its pocketabililty factor, packaging, easily transformation of recipe
according to the different tastes of consumers, an ideal preparation recipe at the back of its
pack & above all its competitive prices.
As according to our survey report we found out the performance level of Maggi Tomato
Ketchup was excellent there were various other brands offered to our target market, but
Maggi prevailed as the winner out of them because of its various factors (taste, less
consumption of time in preparation, prices, pack etc.)

Quality is the main factor on which Maggi Tomato Ketchup emphasizes as it is Maggi’s
main strength which provides Maggi an edge over its competitors. As all the products of
Maggi are produced identical which fulfills its promise to its target market.
Maggi products are durable as due to its preparation these products are easy to store, have a
long shelf life and can be stored at any given temperatures which is tested and approved.
Reliability is also one of Maggi’s strength, as one can always rely on a Maggie product for a
particular taste which it guaranties that is no matter which pack you are buying you would be
provided with the same taste, aroma & seasoning.
It is an Indian customer’s psyche that “whatever looks good and feels good would be of good
quality” so Maggi packs had been designed keeping in mind the same concept, its
promotional schemes, color of the packages and the pictures depicted on the pack appeals to
the customers.
Maggi leveraged the brand equity very effectively. The product quality was good and the
communication was excellent. The brand was positioned as a "Different" sauce with the
baseline "It’s different".
Brand Image: Young - Teenager, Ever changing, humorous, unpredictable and "whacky"

Customers were intrigued as to what is different about the brand and was curious to try the
sauce. The ads featuring Javed and Pankaj kapoor was superb and funny. It was created by
JWT. The new campaigns are handled by Publicis and the baseline has been changed to
"Enjoy the Difference".

In this case even though the new baseline "Enjoy the Difference" was not very different from
the old one.
We strongly feel that the brand managers should take the ownership of the brand and the way
it is communicated. If it is left to agency alone, every time the agency changes, the
communication changes.
These additions made a point of difference against competitor’s Tomato Ketchup. Their main
positioning message is ‘Enjoy the difference’. With the successful extension of brand and
right positioning, Nestle emerged as market leader in ketchup segment by 1999.
The Consumer Magazine has published its in-house laboratory test findings on 15 brands of
tomato sauce and ketchup from across the country and 2 unbranded samples from
Ahmedabad.
Overall, Maggi Ketchup (79) scored the highest among the national brands followed by
Kissan Sauce (78) and Heinz Ketchup (78).
INNOVATION PROCESS ADOPTED BY MAGGI TO COMPETE THE “PRICE
WAR”…..
– the innovation process of maggi…….

OUTCOME CONSTRAINTS

Ingredients Cost
Formulations Manufacturer conservatism
Processes Quality
Additives Safety
Packaging Consumer expectations
Marketing Consumer conservatism
Distribution Sociological, Political
Patent Legal
……
MEANS Innovation DRIVING FORCES

Recruiting Strategy
Training Quality
R&D Know-how
Technology watch SOURCES Profit
Technology transfer Market environment
Information Know-how Fashions, trends
… Knowledge …
Creativity
Competition
Academic
Inventors
Suppliers
RESEARCH METHODOLOGY

The present study constitutes the comparison of the 4 Ps of the Maggi of Nestle India Ltd.
and Kissan of Hindustan Unilever Ltd.
This will be done from the secondary data collected from the websites and the food
consultants.
We have established some hypothesis and some inferences on the basis of the primary data
collected.
The steps involved in the research are:

1. SURVEY METHODS

Customer survey for primary data:

We asked the customers to rank the various attributes on a scale of very important, important
and not very important. To find-out the brand perception of various brands, paired
comparison between them is used.

2. QUESTIONNAIRE DESIGN

In designing the questionnaire we paid particular attention to the content and wording of the
questions. There were some questions which could be easily framed. The questionnaire was
meticulously prepared by identifying the various variables i.e product, price, place,
promotion. The same scale of yes/no and very important, moderately important and least
important was used to make the respondents comfortable.

SAMPLE COPY OF THE QUESTONNAIRE

OBJECTIVE:- To study the brand preference of Maggi Tomato Ketchup.

1. Name:
…………………………………………………………………………………………..
2. Occupation: ………………………………………………………………………………….
3. Family Monthly Income:
Below 25000 25000-50000 50000-1 Lac 1 Lac and above
4. Location:
……………………………………………………………………………………….
5. Age:
15-25 25-35 35-45 45 and above
6. Family type:
Joint Nuclear
7. Do you consume tomato ketchup?
Yes No
8. Which brand you prefer the most?
Maggi
Kissan
Heinz
Smith & Jones
Tops
Cremica
Other ....………………………………………………………………………………….
9. Have you ever used Maggi Tomato Ketchup?
Yes No
10. If no , it is because :
Lack of awareness
Lack of availability
You find it expensive
You don’t like the product
Others …………………………………………………………………………………….
11. You came to know about Maggi Tomato Ketchup from :
Newspaper advertisements
Radio
T.V. advertisements
Word of mouth
Point of sale
Other source……………………………………………………………………………..
12. Do you remember any of the T.V. advertisements of Maggi Tomato Ketchup?
Yes No

13. Does celebrity endorsement prompt you to purchase Maggi Tomato Ketchup?
Yes No

14. Have you tried new variants of Maggi Tomato Ketchup after viewing the
advertisements?
Yes No

15. What is the level of discounts /offers available with Maggi Tomato Ketchup?
High Medium Low
16. Which of the offers available influence you the most to purchase Maggi Tomato
Ketchup?
Discounts offer
Buy one get one
Combo packs
Other ………………………………………………………………………………………
17. Is Maggi Tomato Ketchup easily available to you?
Yes No
18. From where do you usually purchase Maggi Tomato Ketchup?
Nearby store
Retail store
Whole seller
19. Which flavor of Maggi Sauces you like the most?
Tomato Ketchup
Hot & Sweet
Tomato Ketchup (With onion & garlic)
Teekha Masala
Tomato Chatpat
Tomato Pudina
20. What is the size of Tomato Ketchup you usually purchase?
Pichkoo Pack
200 g
600 g
1kg
21. How frequently you purchase Maggi Tomato Ketchup?
Every week
Every forth night
Every month
Occasionally

22. Tick the level of importance according to your preference:

Attribute Very important Moderately important Least important
Taste

Color

Thickness

23. Any further suggestions: ……………………………………………..

…………………………………………………..
………………………………………………………………………………………………….

3. SAMPLING DESIGN

The sampling frame is defined in terms of who the respondents are can answer the questions
that need to be addressed. First we defined our target population as the people who are
involved in the purchase of house hold items. Then we used random sampling in conducting
the survey.
Our sample mainly had females from different age groups.

4. LOCATION FOR THE SURVEY

Our survey is limited to the Delhi NCR region. Responses were collected form Noida,
Greater Noida, South Delhi, Faridabad.

5. SAMPLE SIZE
While planning the survey we estimated the sample size of 150 respondents. We have
surveyed 130 people who lie within our target population. The survey consists of more
number of females (more than 60% of the total sample size). Most of the respondents are
from the middle and upper middle class.

6. DATA COLLECTION AND ANALYSIS

The data collected via survey was entered into the excel sheet. The results were tabulated and
analyzed. According to the analysis relevant inferences has been made related to each
question.
Based on the question no. 22 of the questionnaire, a hypothesis was analyzed. The hypothesis
is that the color and the thickness of tomato ketchup are equally important to the respondents
of the survey conducted. Using sign test this null hypothesis has been rejected and the
alternate hypothesis has been accepted.

DATA ANALYSIS

1. SOURCE OF INFORMATION ABOUT MAGGI TOMATO KETCHUP

SOURCE NO. OF RESPONDENTS

NEWS PAPER 14
RADIO 3
T.V. AD 97
WORD OF MOUTH 23
POS 15
OTHER 5

INFERENCE:
This graph reveals that T.V. Advertisements are the major source of information regarding
Maggi Tomato Ketchup and so we can also infer that they have been successful in their
promotion strategies involving electronic media.

2. REMEMBER ANY TV AD

RESPONSE NO. OF RESPONDENTS

YES 113
NO 16

INFERENCE:
This graph facilitates us in realising that majority of the people are aware of the brand Maggi
as they remember TV ads so it can be inferred that Maggi’s promotional team has far been
successful in positioning its Tomato Ketchup in the mind of the people.

3. CELEBRITY ENDORSEMENT PROMOTE BUYING

RESPONSE NO. OF RESPONDENTS

YES 39
NO 89

INFERENCE:
This graph infers that Celebrity Endorsements does not influence the buying decision of
majority consumers. It also infers that reference group does not make any impact on
consumer mind when we talk about Maggi Tomato Ketchup.

4. LEVEL OF DISCOUNT OFFER

HIGH MEDIUM LOW UNAWARE

2 64 57 5

INFERENCE:
This pie-chart reveals that Maggi Tomato Ketchup is positioned in the mind of the consumer
and also its various discount offers to major extent.

5. MAGGI TOMATO KETCHUP IS PURCHASED FROM

PLACE NO. OF RESPONDENTS

NEAR BY STORE 78
RETAIL STORE 51
OTHER 7

INFERENCE:
This graph highlights the impact of organized retail on unorganized sector, unorganized still
being the dominant, as around 38% of consumer make purchases of Tomato Ketchup from
retail store.

6. SIZE OF TOMATO KETCHUP USUALLY PURCHASED

SIZE NO OF RESPONDENTS
PICHKOO 6
200g 39
600g 28
1Kg 59

INFERENCE:
This graph figures out that the larger sized bottle of Maggi Tomato Ketchup is largely
demanded even in the presence of smaller sized bottles and even the new Pichkoo.
7. FREQUECY OF BUYING MAGGI TOMATO KETCHUP

TIME NO. OF RESPONDENTS

EVERY WEEK 11
EVRY FORTNIGHT 7
EVERY MONTH 63
OCCASIONALLY 44

INFERENCE:
This graph depicts that the frequency of buying every month of Maggi Tomato Ketchup is
maximum.

8. MOST LIKED FLAVOUR

FLAVOURS NO OF RESPONDENTS
Tomato Ketchup 67
Hot & Sweet 46
Tomato Ketchup (With onion & garlic) 9
THEEKHA MASALA 5
Tomato Chatpat 10
Tomato Pudina 7
INFERENCE:
This graph shows that the original flavour of Maggi Tomato Ketchup is still the leader in
terms of popularity and Hot & Sweet is slowly catching up with it. Its new variants and
flavour have also been noticed and have started making in-roads for themselves.

9. CHOICE OF OFFERS

OFFERS NO. OF RESPONDENTS

DISCOUNTS 32
BOGO 47
COMBO 32
OTHERS 12
UNAWARE 8

INFERENCE:
This graph infers that “Buy One Get One Free” offer of Maggi Tomato Ketchup is the first
choice among the consumers. This shows that consumers are price sensitive too and they
prefer buying when there are offers running around.

10. IMPORTANCE OF THE ATTRIBUTES

ATTRIBUTES VERY IMPORTANT MODERATELY IMP LEAST IMP

TASTE 124 4 0
SOLOCCCR 37 71 20
THICKNESS 67 53 8

COLOR 37 71 20

INFERENCE:
This graph depicts our analysis of the importance of the various product attributes like taste,
color and thickness in the eye of people. We can very well observe in the graph that Taste,
undoubtedly, is the most important attribute that people prefer more over any other while
selecting a brand. Moderate importance is given color attribute and thickness also derives its
importance somewhere between moderate to very.

HYPOTHESIS TESTING
OBJECTIVE: to find what is more important between color and thickness of tomato ketchup
among the respondents.
METHOD:
1. USING THE SIGN TEST FOR DATA ANLYSIS:
Table for sign test
S. NO. RESPONDENTS VIEW FOR COLOR RESPONDENTS VIEW FOR THICKNESS
SIGN
1211
2211
3321
4312
5211
6211
7211
8211
9 1 3 -2
10 2 1 1
11 2 1 1
12 2 1 1
13 2 1 1
14 3 2 1
15 2 1 1
16 2 1 1
17 2 1 1
18 3 1 2
19 2 1 1
20 3 2 1
21 3 1 2
22 1 2 -1
23 1 2 -1
24 2 1 1
25 2 1 1
26 1 2 -1
27 3 1 2
28 1 2 -1
29 2 3 -1
30 3 1 2
31 2 1 1
32 2 1 1
33 2 1 1
34 2 1 1
35 2 1 1
36 2 1 1
37 3 2 1
38 1 2 -1
39 2 1 1
40 2 3 -1
41 3 2 1
42 2 1 1
43 3 2 1
44 3 2 1
45 3 2 1
46 3 2 1
47 2 3 -1
48 2 3 -1
49 2 1 1
50 3 1 2
51 1 2 -1
52 2 1 1
53 3 2 1
54 3 1 2

2. NO OF POSITIVE SIGN= 43
NO OF NEGATIVE SIGN=11

TOTAL SAMPLE SIZE=54

(In this sample size we have ignored the respondents who have given the equal importance to
color and taste for tomato ketchup)

3. NULL HYPOTHESIS,H(0): P=0.5

(There is no difference between the importance level of color and thickness for tomato
ketchup)

4. ALTERNATE HYPOTHESIS,H(1): P<0.5

(The level of importance of color is less than thickness for tomato ketchup)

5. APPLYING SIGN TEST: So,

pH(0)= 0.5
qH(0)= 0.5
n= 54
p= 0.79
q= 0.21

��, Standard Error= 0.068

6. Z (test) = 4.264

7. Significance level, α = 0.05

Z (critical) = 1.96

INTERPRETING THE RESULTS:

Since the Z (test) is greater than Z(critical), we reject the null hypothesis that the importance
of color and taste for tomato ketchup is same.
Therefore, we accept the alternate hypothesis that is the importance of color is less than
thickness among the respondents for tomato ketchup.
The data collected from the survey clearly shows that taste is the most important factor while
purchasing the tomato ketchup.
The above analysis tells that thickness of tomato ketchup is the second most important
attribute for the respondents after taste. Maggi is the leader in the ketchup industry and
known for its better taste and varieties. Maggi should work towards the thickness of its
tomato ketchup.
RECOMMENDATIONS

PRODUCT
• The ketchup is thinner as compared to Kissan. According to our inference thickness is one
important criteria which affects buying behaviour. Hence company should work on the
thickness of the ketchup.
• Company should work on taste also. According to the data collected people prefer the taste
of Kissan.
• They should maintain quality of the product.

PLACE

• Most of the people buy Maggi Ketchup from local kirana stores. But organized sector is
booming and according to our survey 38% people buy Maggi Ketchup from Retail Stores.
Hence they should increase the visibility of the product in Retail Stores and hence effective
distribution network.

PROMOTION
• According to the data collected it is recorded that the level of discounts offered is low.
Hence company should try to provide more discounts on the product. ‘Buy One Get One
Free’ is the most preferred promotional offer.
• The frequency of TV advertisements has decreased. They should try to come out with more
innovative advertisement to catch the attention of the customers.
• They should promote there new product ‘PICHKOO’ as people are less aware of this new
size. It could increase the market share tremendously as it is very convenient to carry.

PRICE

• It should be more competitively priced. Customers perceive it to be highly priced.

LIMITATIONS

1. SAMPLING ERROR:
The sample of our survey is confined to the respondents from the middle class and the upper
middle class.
The sample size of 130 is not the true representative of our sampling frame and result in
skewed responses.
The locations under taken for the survey is also a constrain because the result of the survey is
limited to some regions and cannot be used for further analysis and implementation.
2. RESPONSE ERRORS:
These errors arise when the respondents give inaccurate or incomplete answers. A major
problem is faced in the survey involved the comparative ratings of various attributes for
tomato ketchup. Many of the respondents were not very willing to mark
their income group.

3. CLOSED ENDED QUESTIONS:

All the questions in the questionnaire were closed-ended to avoid any confusion from the
respondents end. But a drawback of this approach is that there was some biasness in
capturing the responses of the respondents. The reasons for such inaccuracy could be
because of unfamiliarity, boredom, faulty recall and the question format.

4. RECORDING ERROR:
This type of error arise dues to errors in hearing, interpreting, and recording the answers
given by the respondents. For example, a respondent indicates a moderate response for the
attributes of the tomato ketchup, but the interviewer misinterprets that to a positive response.

5. DATA ANALYSIS ERROR:

These errors occur while raw data from questionnaire are transformed into research findings.
For example, if the outliers are not filtered from the data during the statistical procedure,
result in incorrect interpretation and findings.
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SWOT Analysis of Maggi

By: Yogin Vora on November 5, 2009 4 Comments

Strengths

· Established Family Brand

· Strong Global Corporate Brand ( NIL )
· Specialization in food processing category marketing and distribution in Urban market
· Presence of other product segments of food category : Dairy Products, Chocolate,
Infant foods
· Pioneer and Leader so 1st mover advantage in Noodles, Sauce, Ketchups and Soup
market.
· Nestle symbolization of warm, family & shelter.
· Research and Development Division in India
· New Noodles Plant in Uttarnchal

Weakness

· Generic Brand to Noodles in India

· Low rural market presence constraints
· Uniform Brand for all food category
· Brand Proliferation

Opportunities

· Growing package and canned food market in India by 15% annually.

· High brand awareness of Indian consumer
· Other product category like Biscuits, Chips and Ready to Eat Market still unexplored.
· Opportunity to be substitute to other snacks category of food products.

Threats

· Competitors with long history in product category Internationally like, Heinz Sauce
and ketchups of Heinz Indian, Top Ramen in Noodle and
· Knorr Soups.
· Single product focused competitors like Heinz sauce and Wai Wai Noodles.
· Less Entry Barriers in the Market segment for product category
· ITC’s strong base in Indian Market.
· Substitute Product to Product Segment.

Popularity: 21% [?]

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1. SWOT Analysis ITC.

2. SWOT Analysis of Lenovo
3. SWOT Analysis of Nike, Inc.
4. SWOT ANALYSIS : SKODA
5. SWOT Analysis of Gold Flake

Tags: Analysis, Biscuits, Brand, Canned Food, Chips, Chocolate, Heinz, India, Indian
Consumers, Infant Food, ITC, Ketchups, Knorr, Maggi, Noodles, Opportunities, Soup,
Strength, SWOT, Threats, Wai Wai Noodles, Weakness