Summer Internship ReportOn

ROUTE TO MARKET AND SELLING METHODOLOGY FOR ‘MAGGI CUPPA MANIA’

By

MEDHA GOYALA0101908295

MBA Class of 2010

Under the Supervision ofMs. Meenakshi Madan

ProfessorDepartment of Finance

In Partial Fulfillment of Award of Master of Business Administration

AMITY BUSINESS SCHOOLAMITY UNIVERSITY UTTAR PRADESH

SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA

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2009

A REPORT ON

ROUTE TO MARKET AND SELLING METHODOLOGY FOR ‘MAGGI CUPPA MANIA’

Submitted by: Submitted to:

Medha Goyal Ms. Meenakshi Madan

MBA (G) 2010 Faculty Guide

II Year

3rd Semester

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A REPORT ON

ROUTE TO MARKET AND SELLING METHODOLOGY FOR ‘MAGGI CUPPA MANIA’

By:

Medha Goyal

NESTLE INDIA LTD.

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DECLARATION

I Medha Goyal student of master of business from Amity Business School, Amity University Uttar Pradesh hereby declare that I have completed the Project on the “ROUTE TO MARKET AND SELLING METHODOLOGY FOR ‘MAGGI CUPPA MANIA’ I further declare that the information presented in this project is true and original to the best of my knowledge.

Date: 24/03/09 Name: Medha GoyalPlace: Noida Enroll no: A0101908295

Program: MBA (G)

CERTIFICATION

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I Ms. Meenakshi Maadan certify that Medha Goyal student of Masters of Business Administration at Amity Business School, Amity University Uttar Pradesh has completed the Project on the “ROUTE TO MARKET AND SELLING METHODOLOGY FOR ‘MAGGI CUPPA MANIA’”, under my guidance.

Ms. Meenakshi MadanPROFESSORDepartment Of Finance, Amity Business School

CERTIFICATION

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I Mr. Dilip Kumar Peshin certify that Medha Goyal student of Masters of Business Administration at Amity Business School, Amity University Uttar Pradesh has completed the Project on the “ROUTE TO MARKET AND SELLING METHODOLOGY FOR ‘MAGGI CUPPA MANIA’”, under my guidance.

Mr. Dilip Kumar PeshinRegional ManagerNestle India Limited

ACKNOWLEDGMENT

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Any study cannot be undertaken single-handedly. Numerous people have helped me directly

and indirectly in this endeavor and supported me throughout. I would like to express my

gratitude towards them.

I would like to express my sincere appreciation to Mr. Dilip Kumar Peshin, Regional Manager,

Nestle India Ltd for providing me the opportunity to work on this project.

I also express my earnest gratitude towards my company mentors Mr. Pankaj Srivastav and

Mr. Raj Kumar Jha, Nestle India Ltd. for his constant encouragement and invaluable guidance

during this study. The completion of this report would not have been possible without their

helping support.

I am also very grateful towards my project guide Prof. Meenakshi Madan, for helping, guiding and

correcting me at each and every step of this report and for her constant and valuable feedback that

helped me immensely in completing this report.

I would also like to acknowledge all those people who have spent their invaluable time giving

me the feedback.

TABLE OF CONTENTS

Page No.

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I. Acknowledgements 7

II. Objectives 10

III. Synopsis 11

IV. Methodology 13

V. Mission 14

VI. Area Covered 15

Chapter 1 – Introduction – Company Overview 16

1.1 Key Dates and Dynamic Expansion 17

1.2 History 19

1.3 Nestle India limited 20

1.4 Plant Location 21

1.5 Business Principles 22

1.6 Pipeline of Innovation 25

1.7 Bottom of the Pyramid 25

Chapter 2 – Nestle Brands

2.1 Maggi the Nestle Brand

2.2 Strategies of Maggi

2.3 Maggi Cuppa Mania’s introduction stage

2.4 Product categories to be served

2.5 Competition getting tougher

26

29

32

33

34

35

Chapter 3 – Distribution Network 37

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Chapter 4 – Retailer Survey

4.1 Retailer Survey Analysis

39

40

Chapter 5 – Marketing Strategy 50

Chapter 6 – Product Development Process

6.1 Maggi Cuppa Mania a Flow Chart

6.2 Stages of New Product Development

6.3 Competitive Analysis

56

56

57

60

Chapter 7 – SWOT Analysis

7.1 TOWS Analysis

61

64

Chapter 8 – Key Achievements

8.1 Key Challenges

8.2 KeyLearnings

64

65

66

Chapter 9 – Finding, Recommendation, Conclusion

9.1 Limitations

9.2 Problems Faced

9.3 Progress report

67 – 69

70

71

72

Chapter 10 – Biblography 75

Chapter11 – Annexure

11.1 Nestle Product Details

76 -78

Objectives9 | P a g e

To explore the potential for such an instant food among the Indian market.

To study the current market condition, track the performance and lay down the strategies for successful marketing of Maggi Cuppa Mania.

To study the available substitutes and determine their penetration level.

Penetrating into the market through various channels and studying the sales trends thereafter.

Determine marketing strategies for enhancing the growth thereafter.

SYNOPSISThe Company focuses its efforts towards a better understanding of the changing lifestyles of

India and anticipating consumer needs in order to provide Taste, Nutrition, Health and Wellness

through its product in the offering. The culture within the Company and access to the Nestlé

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Group's proprietary technology/Brands expertise and the extensive centralized Research and

Development facilities is one of innovation and renovation giving it a distinct advantage in these

efforts. It helps the Company create value that can be sustained over the long term by offering

consumers a wide variety of high quality and safe food products at affordable prices.

Since in today’s fast paced busy life, the consumer wants something that fits with his/her rushed

lifestyle, help him/her multitask is a reality. He/she seeks a product which in addition to being

tasty and healthy is convenient to prepare, eat, carry and at the same time is also filling.

New MAGGI CUPPA MANIA has been launched keeping exactly all this in mind along with

what can be had anytime on the go.

MAGGI CUPPA MANIA:

Offers delicious taste combined with goodness of real vegetables.

It is simple to make – Only boiling water needs to be added

Comes packed with Power of Calcium

In addition to the delicious new product, MAGGI CUPPA MANIA comes in attractive

sleeved cups.

Nestle has widened its offering for the brand Maggi noodles with the launch of Maggi Cuppa

Mania. The company hopes that these instant noodles will be a hit with the busy executives who

are short on time. The noodles have added vegetables and the company claims that each 50gm

pack of these instant noodles meets 20% of the recommended daily allowance for Calcium of

the body. Many in the younger generation today are facing busier lifestyles, they are

continuously on-the-go, and need products that offer taste, nutrition and convenience. Maggi

cuppa mania is a trendy ally for the multitasking generation.

The main objective of my project is to study the current penetration level, track down the

performance and lay down the strategies for successful marketing of maggi cuppa mania.The

product has been launched in a vegetable flavor but it may expand its range with the time to

meet the market needs, as the market caters to the institutions, thus schools, hospitals, café

managers, catering outlets, food on the move outlets and food is to be served in a hurry.

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My project starts with analyzing the current penetration level of maggi cuppa mania in various

channels, studying the sales trend among various channels, checking the reach ability in various

outlets which will help me in determining the market share of maggi cuppa mania and

determining the prospect market.

My study also includes the analysis as there are many players emerging in this segment with

Wai – Wai owned by Chaudhary Group giving stiff completion to the product along with and

other players like Top Ramen Smoodles manufactured by Indo-Nissin Ltd, Smith & Jones, Ching's

Instant Noodles, AA Nutritions’s Yummy Mayos, Cup Noodles etc., flavors are more oriented toward

local flavors, such as Masala, chicken tikka etc.

Then focus on increasing the outlets under various channels like Nescafe outlets, small eating

joints, hospital cafés, Cineplex’s etc. My aim was to cover maximum schools, colleges,

hospitals, Cineplex’s, golf courses and take away joints in the area so as to increase the

penetration level of maggi cuppa mania.

Final stage, of the project aims to determine marketing strategies like distribution strategies,

activation program which includes various promotional activities scope for expansion,

challenges faced and discussions with company guide regarding the future of the product.

Methodology Focus on target market

New Product + New Market = Diversification

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Tools to be used – interview and discussions with prospect distributors, café

managers, cinema managers, caterers etc.

Type – Random, Convenience sampling

Market selection

Small fast food joints and vendors

Hospitals

Schools

Colleges

Cineplex’s

Aviation Sector

Tuitions centers

Golf courses

Scope of study – the project scope is limited to study the route to marketing and

selling methodology of Maggi Cuppa Mania in north, west and central Delhi,

MISSION

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“To continuously exceed our customer expectation for quality products and services”

Our goal is to offer top quality brands and innovative packaging to meet the individual

needs of consumer all over the world, whenever, wherever and however.

At Nestlé, our research makes it possible for everyone to enjoy better food for a better life.

Good Food is the primary source of Good Health throughout life. We strive to bring

consumers foods that are safe, of high quality and provide optimal nutrition to meet

physiological needs. In addition to nutrition, health and wellness, Nestlé products bring

consumers the vital ingredients of taste and pleasure.

As consumers continue to make choices regarding foods and beverages they consume,

Nestlé helps provide selections for all individual taste and lifestyle preferences.

Research is a key part of our heritage at Nestlé and an essential element our future. We

know there is still much to discover about health, wellness and the role of food in our lives,

and we continue to search for answers to bring consumers Good Food for Good Life.

.

Area Covered

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The project scope is limited to the study the route to market and

selling methodology of Maggi Cuppa Mania in north, west and central

Delhi.

Key markets covered were – Rohini, Pitampura, Shalimar Bagh, Moti

Nagar, Saraswati Vihar, Cannought Place, Shankar Market, Rajori

Garden Market, Wazirpur.

Café Owners, Caterers, Cineplex’s, Golf Course owners, Hospitals,

Schools, Colleges were the most efficient channels.

Need to tap more outlets and search for new outlets.

Cater to new outlets in the form of small eating joints and cafés.

INTRODUCTION

NESTLE

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Nestlé was founded in the year 1867 in Geneva, Switzerland by Henri Nestlé. Nestlé’s first

product was “Farine Lactee Nestlé”, an infant cereal. In 1905, Nestlé acquired the Anglo-Swiss

Condensed Milk Company. Nestlé’s relationship with India started in 1912, when it began

trading as ‘The Nestlé Anglo-Swiss Condensed Milk Company (Export) Limited’, importing

and selling of finished products in the Indian market.

Today, Nestlé is the world's largest and most diversified food company. It has around 2,50,000

employees working worldwide, operating over 500 factories in approximately 100 countries and

offers over 8,000 products to millions of consumers worldwide.

Since, Henri Nestlé first developed the first milk food for infants in 1867, and saved the life of a

neighbor’s child, the Nestlé Company has aimed at building a business as the world's leading

nutrition, health and wellness company based on sound human

values and principles.

Nestlé S.A., is one of the world's top five, most respected, food and

beverage company. Besides being the world's no.1 food company in

terms of sales, Nestlé is also a world leader in coffee (Nescafe), food

and nutrition. The company’s international Research & Development

network supports the products made in more than 500 factories in

over 84 countries.

Most food companies worldwide were focusing on catering to health conscious consumers and

increase their reach into health care segments. On the same premises, Nestlé acquired the

medical nutrition business of Swiss pharmaceutical major, Novartis International AG in 2007,

striving to reposition itself as nutrition, health and Wellness Company. With this acquisition,

Nestlé moved from being a minor player in healthcare nutrition segment to world number two

player in the nutrition, health and wellness in the industry. Nestlé aims at becoming the leader of

the industry with combined strengths of the two companies.

Quality is the essential ingredient in all of its brands and the reason why millions of people

choose Nestlé products every day. Nestlé’s consumers have come to trust in its commitment to

excellence and turn to Nestlé brands to maintain nutritional balance in this fast paced world.

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Key Dates and Dynamic Expansion: 1866: The Anglo-Swiss Condensed Milk Company is founded in Cham, Switzerland.

1867: Henri Nestlé begins selling cow's milk-food in Vevey, Switzerland.

1900: Nestlé opens a factory in the United States.

1905: Nestlé and the Anglo-Swiss Condensed Milk Company merge.

1938: Nestlé introduces Nescafe.

1974: Nestlé enters the nonfood business, becoming a major shareholder of the cosmetics

company L'Oréal.

1979: After numerous name changes, Nestlé S.A. is adopted as the official corporate title of

the company.

1985: Nestlé acquires Carnation and Hills Brothers Inc.

1992: Nestlé acquires Perrier.

1998: Nestlé acquires the Spillers pet food business belonging to Dalgety PLC, making it

the second largest pet food maker in Europe.

2002: Nestlé acquires Ralston-Purina to become co-leader in the global pet food business.

2003: Nestlé acquires Dreyer's Grand Ice Cream.

2005: Chief executive officer Peter Brabeck - Letmathe is named chairman of the board.

The history of Nestle includes the development of different products as well as acquisitions,

mergers and purchasing of shares in companies, mainly abroad. Over the course of the

years, this has enabled the company to broaden its range of products and diversify its

operations, while at the same time strengthening the economic foundations of the company.

Amongst the most important acquisitions were Carnation in Los Angeles (milk, culinary

products and pet foods) and more recently Rowntree Mackintosh in York (chocolate and

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confectionery), Buitoni in Perugia (pasta) as well as Perrier in France (mineral water).

Nestle, which does 98% of its business outside Switzerland, it also has interests in non-food

sectors, in cosmetics (a large share holding in L'Oreal) and ophthalmic products (acquisition

of Alcon Laboratories Inc.) while continuing to give priority to food products. The most

recent acquisition has been of ‘NOVARTIS’ foreign based pharmaceutical company.

HISTORYHenri Nestlé founded Nestlé in the year 1866 in Switzerland. Nestlé meaning ‘A Little Nest’

in Swiss German. Nestlé first customer was a premature infant who could tolerate neither

his mother’s milk nor any other conventional substitute. Thus, Henri’s ultimate goal was to

help fight the problem of infant mortality due to malnutrition for which he developed a

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product combining various cow’s milk, wheat flour and sugar and named it Farine Lactee

Nestlé, which was the first product of Nestlé being marketed in Europe.

In 1874, Jules Monnerat purchased Nestlé and collectively they launched a condensed milk

product of its own. In 1905, Nestlé got merged with Anglo-Swiss condensed milk.

After some time, when Nestlé got fully established and all its operation were properly

functioning in Europe and were gaining fame around Europe, then Nestlé decided to set up

production plants around the globe to ensure the growth of the organization and to become a

multinational.

The decision to set up industrial operation in new market needs a lot of research, as there are

various factors that affect the growth of the organization and turns out to be a loss for the

company. Such factors are as follows

The availability of raw material

Cost factor

Economic climate

Consumer purchasing power

Consumer tastes

The decision to become multinational turned fruitful for Nestlé and today Nestlé has its own

operations and products in America, England, India, Brazil, Australia, Pakistan, Hungary,

France, Belgium, Italy, Spain and various other countries around the globe.

NESTLE INDIA LTD.

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Nestle India ltd is the Indian arm of nestle South Asia with 62% stake in the company. It is one

of the leading branded food processing company in the country with products like instant coffee,

weaning food, instant foods, milk products etc. nestle has also established its presence in

chocolate and confectioneries.

Milk products, culinary segment are the major contributors to Nestlé’s total sales. Some of the

Nestlé’s popular brands are Cerelac, Maggi, Nescafe, Milkmaid. The company has also entered

the chilled diary segment with the launch of nestle dahi and butter. Nestle has also made a foray

in non-carbonated cold beverages segment through placement of Nestea iced tea and Nescafe

frappe vending machines.

It’s some offering like Maggi and Nescafe are

generic brand names in India. Further it has also

been able to launch new brand extensions and take

price hikes due to its strong brand equity.

Thus with such strong franchises, Nestle offers one

of the best exposures to increasingly strong and sturdy consumptions trends in India. The

segment that nestle caters to largely have an urban appeal. Nestle capacity to introduce pricing

power, new products in the market and underlying strong volume of growth in the economy will

be able to drive growth in future.

PLANT LOCATIONS

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Nestle started its manufacturing operations with Milkmaid in 1962 at Moga factory. Manufacturing of

Nescafe started in 1964 at the same factory. The company set up another factory at Cherambadi in Tamil

Nadu, for manufacture of infant foods, coffee etc. For almost two decades there were no new additions

of manufacturing facilities due to restrictive policy environment. The company set up its Nanjangad

(Karnataka) factory in 1989 and the Samlakha (Haryana) factory in 1992. The Ponda (Goa) factory

started operations in 1995. The Company set up its sixth manufacturing unit in 1997 at Bicholim in Goa

Nestle Moga Factory

BUSINESS PRINCIPLES

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While Nestlé Corporate Business Principles will continue to evolve and adapt to a changing world, the

basic foundation of the company remains unchanged from the time of its origin, and reflects the ideas of

honesty, fairness, and a general concern for people. Nestlé is committed to the following Business

Principles in all countries, taking into account local legislation, cultural and religious practices:

People first: Employees, people and products are of greater significance at Nestlé than its systems.

Systems and methods, while necessary and valuable in the running of its complex organization, should

remain managerial and operational aids but should not become ends in themselves. A strong orientation

toward human beings, employees and executives is a decisive component of long-term success.

Quality products: Their main focus is on the products. The ultimate justifications for a company are its

ability to offer products that are appealing because of their quality, variety, convenience and price of the

products that can stand their ground even in the face of fierce competition.

Long-term view: Nestlé long-term thinking defuses many of the conflicts and contentions among

groups that apply to employment conditions and relations with employees as well as to the conflicts

management and opposing interests of the trade and the industry. Their ability to focus on long-term

considerations is only possible if the company is successful in the struggle for short-term survival. That

is why Nestlé strives to maintain a satisfactory level of profits each year.

Decentralization: Decentralization being the basic principle of Nestlé. Switzerland, home to Nestlé's

Swiss subsidiary, its international headquarters and the registered office of Nestlé's holding company,

but Nestlé does not regard its Swiss headquarters as the center of the universe. Their policy is to adapt to

regional circumstances, mentalities and situations. By decentralizing operational responsibility, the iea is

to create strength and flexibility and are able to make decisions that are better attuned to specific

situations in a given country. Policies and decisions concerning personnel, marketing and products are

largely determined locally. Policy creates stronger motivation for their executives and employees and a

greater sense of identification with Nestlé's business. Nestlé strives to be an "insider" in every country in

which it operates, not an "outsider."

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Uniformity: An important concern at Nestlé is uniformity; how consistent are Nestlé's principles,

policies, rules of conduct and strategies, and to what extent they should differ depending on the country,

subsidiary, region, branch or group of products of their operations. In general, Nestlé tries to limit the

uniformity of its policy to a required by circumstances minimum.

Diversification: Nestlé does not want to become either a conglomerate or a portfolio manager. Nestlé

wants to operate only those businesses about which it has some special knowledge and expertise. Nestlé

is a global company, not a conglomerate hodgepodge. They regard acquisitions and efforts at

diversification as logical ways to supplement our business, but only in the context of a carefully

considered corporate marketing policy.

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.

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Nestlé continues to maintain its commitment to follow and respect all applicable local laws in

each of its markets.

Research and development: The Nestlé research and development centers have two main tasks: to

create new products and manufacturing processes and to improve those that already exist. These centers

play a key role in product safety and quality and also have their role in conserving resources and

protecting the environment. Environmental concerns are an integral part of any development process to

ensure that our future commercial operations meet the desired criteria.

Marketing and distribution: Marketing is based on the principle of satisfying consumer needs. This is

the foundation also for the environmental marketing approach of Nestlé. Environmental product claims

in advertising, promotional material and on packaging are in accordance with legal requirements, based

on solid scientific evidence and used in a serious and reasonable manner. The aim is to minimize

wastage in communication, publicity and promotional material, in particular through more precise

targeting of marketing activities.

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PIPELINE OF INNOVATION

The pace of innovation and reconditioning has increased significantly. The contribution of new

product, variants have increased fivefold since 2004. The company has been launching value

added variants in its ranges like noodles (dal, Atta, tomato, curry, chicken), sauces (hot & sweet,

pichko), baby food (Nan, whole grain cerelac) and beverages segment (fun shakes, coffee).

It has launches many new products into the market like Nido (milk powder for children),

‘Nesvita Cerevita’ (multigrain cereal), Milkmaid Fun shakes (flavored milk), and Nesvita

Probiotic dahi and is further looking forward to building on its reputation.

“BOTTOM OF THE PYRAMID”

Nestle has been increasing its focus on the ‘bottom of pyramid’ with price pointed products

(PPP) and small key units (SKU) in existing brands. The contribution of these products has

increased from 21% in 2003 to 72% in 2007. It has launched slew of products in chocolates and

confectionary segment which has led to greater visibility and acceptance for its product in rural

and backward areas. For egs Munch is sold in 2 m outlets of India for only Rs 2.the Company

has set up a facility in Uttarakhand which is dedicated to developing products below Rs 10.

Although this segment was important for the company, it plans to intensify its focus as products

priced below Rs10/ SKU constitute over 40% of India’s FMCG market, thus providing a huge

opportunity. It is also very well placed to capitalize on this growth potential, given its strong

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brand equity, differentiated products, strong parent support and global experience and strong

distribution network.

NESTLE’S BRANDS

Quality and nutritional value are the essential ingredients in all of the Nestlé’s brands. Millions of

people prefer Nestlé products every day, happy with the addition to their wellness that they bring. Nestle

has maintained its thrust on improving the availability of its fresh products to its consumers, it aims at

developing newer and better products from time to time. The company has launched mineral water,

UHT milk, butter, curd, new tomato and curry flavors in Maggi noodles, a new confectionery - Nestle

Choco Stick at an affordable price point of Rs2, a soft chewy fudge Milkybar Choo and Nestea iced tea.\

Beverages

Beverages like tea, coffee and other health beverages contribute to nestle’s 30% of total sales turnover,

with a growth of about 15% in this sector. 14% of its sales come from Beverages domestic market,

exports contribute to about 16% of sales. Its other brands like Sunrise has also been re-launched under

the Nescafe franchise to leverage on the existing equity of the brand like Nescafe Classic, Nescafe

Sunrise, Nestle Milo, Nescafe 3 in 1 and Nescafe coolers . Nestle has focused on expanding the

domestic market through price cuts and product repositioning. Nestle launched noncarbonated cold

beverages such as Nestea Iced Tea and Nescafe Frappe during 2001, followed by Nestle milkmaid fun

shakes. The company also markets ghee, 6% market share, under the Every Day brand name. Nestle has

expanded its milk product portfolio with the launch of new dairy products such as UHT milk, Curd and

Butter. Huge investments are being made in building a diversified dairy business and the distribution

infrastructure for the same.

Chocolates & Confectionery

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Nestle made a foray into the chocolates and confectionery segment in the year 1990 and has bagged a

one-forth share of the chocolate market of the country. Its product range has been expanded to all the

segments of the market with brands such as Nestle Kit-Kat, Nestle Kit-Kat lite, Nestle Munch, Nestle

Munch Pop Choc, Nestle Milky bar, Nestle Milky Bar Choo, Nestle Bar-One, Nestle Funbar, Nestle

Milk Chocolate, Polo, Polo Powermint, Nestle Eclairs, Nestle Crunch, After Eight, Quality street, Lions

etc.

Culinary products

Ready to cook food , instant food, cooking aids come under the maggi culinary products range

amounting to Nestlé’s 14% of the total turnover. Maggi is a brand name in itself, being a market leader

of noodles consuming about 45% of the market share, Maggi Ketchup covering 43% of the market

share, other products like ready to cook gravy, sauces, soups, seasonings as well as traditional Indian

foods like pickles and instant mixes also cater to a large amount of the population. New taste variants

such as maggi cuppa mania are also being launched into the market for fast and on the move category.

The growth in this segment has a potential over 20%.

Consumer Services

Nestlé is committed to offering consumers high-quality food products that are safe, tasty and affordable.

The Nestlé Seal of Guarantee is a symbol of their commitment. They firmly believe in maintaining

regular contact with their consumers, this applies both to how they present their products and to how

they address their consumers' questions and concerns. When Henri Nestlé prepared his first boxes of

infant formula for sale, he put his address on the packages so people would know where to go if they

had questions. Today, our Consumer Relationship Panel with the words "Talk to Nestlé" expresses the

same commitment. Nestlé has a world wide Nestlé Consumer Services network devoted to caring for its

consumers to provide the prompt, efficient and high quality service that consumers expect from Nestlé.

This is because at Nestlé, they understand that success depends on meeting customer needs.

Future Prospects

Nestle is focused on product expansion and improvement of distribution efficiency. The Dairy business

is being expanded and is expected to drive growth in the long run, although short-term profitability may

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be impacted in the investment stage. The company’s entry into the mineral water segment is a concern,

as the segment is already overcrowded and the company faces stiff competition especially from the Cola

manufacturers. Acquisition of an established brand could catapult Nestlé’s position in the segment. In

categories like beverages, culinary products and chocolate confectionery, the company is looking at

driving growth through launch of smaller SKU’s, thus enabling affordability to a wide section of the

population.

Nestle Brands

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MAGGI the NESTLE Brand

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Maggi a brand of Nestle has vast product depth to its range of instant soups, sauces, bouillons, stocks,

ketchups, instant noodles, and seasonings. The company came into existence in the year 1872 in

Switzerland, when Julius Maggi took the responsibility his father's mill. Very soon it became a pioneer

of industrial food production, aiming at the improvement of the nutrition of the worker families. It

became the first to bring protein-rich edible part of a leguminous plant in its meal to the market, which

was followed by ready-made soups in 1886. In 1897, Julius Maggi established the company Maggi

GmbH in the German town of Singen.

In various parts of Europe, including German-speaking countries as well as the Netherlands, Slovakia,

France, Czech Republic, Poland, "Maggi" is still synonymous with the brand's "Maggi-Würze" (Maggi

spice), a dark sauce which is very similar to East Asian soya sauce without actually containing soya. It

was also introduced, as a cheap substitute for meat extracts in 1886. It has since become a well-known

part of everyday culinary culture in Switzerland, Austria and in Germany.

The bouillon cube or 'Maggi cube' seasoning was introduced in 1908, which was another meat

substitution product, because chicken and beef broths are so common in so many cuisines of many

different countries, the company's products have a large worldwide market. Today Maggi is particularly

well known brand in New Zealand, Australia, Pakistan, Singapore, Malaysia and India for its instant

noodles.

MAGGI PRODUCT RANGE:

Maggi Noodles

MAGGI 2-MINUTE Noodles is one of the largest snack food

brands in the country and defines the Instant Noodles category in

the country. MAGGI 2-MINUTE Noodles has been renovated to

provide 20% of the RDA of Calcium and Protein for the core target

group. It is available in 4 flavours: Masala, Chicken, Tomato and

Curry.

Maggi Vegetable Noodles

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It is an innovative product and the first of its kind in India. Nestlé India used the Group's extensive

Research and Development expertise to develop MAGGI Vegetable Atta Noodles which contain whole

wheat and real vegetables. A 90g pack of MAGGI Vegetable Atta Noodles meets 20% of your child's

RDA for Protein and 35% of your child's RDA for Dietary Fiber. Taste Bhi , Health Bhi !

Dal Atta Noodles

To provide the family with more good food, Nestlé India has now launched yet another innovative

product - MAGGI Dal Atta Noodles, further building on the nutrition proposition of TASTE BHI

HEALTH BHI.  In addition to the wholesome nutrition of Dietary Fiber contained in whole wheat

( 'Atta'), the new product offers the goodness of protein coming from the unique combination of 'Atta'

and 'Dal'. Every serve of MAGGI Dal Atta Noodles provides over 20% of a child's* daily requirement

of dietary fiber and protein, therefore making it a healthy choice. . 

Maggi Rice Noodles Mania

Maggi Rice Noodles Mania comes as another unique taste bhi health bhi offering

from the house of MAGGI. The all-new exciting flavor range viz. Lemon

Masala, Chilly Chow and Shahi Pulao to appeal to all members of the family

across different regions of the country. The sheer range of flavors’ will fulfill the

craving / MANIA  for taste and the goodness of rice with ‘balanced energy’ (i.e. at least 60% Energy

from  carbohydrates, not more than 30% from fat and 10%  from Protein)

Maggi Cuppa Mania

New Maggi Cuppa Mania has been launched keeping exactly the consumers likes and dislikes in mind

as Maggi Cuppa Mania can be had anytime on the go. Maggi Cuppa Mania Offers delicious taste

combined with goodness of real vegetables ,Comes in two mouth watering variants MAGGI CUPPA

MANIA is an ideal offering for the new generation pressed hard for time trying to juggle multiple roles

all at once. Therefore the line… “Just add garam paani … Carry on jaani”

Maggi Sauces

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Nestlé India has always focused its efforts to better understand the changing lifestyles of consumers and

their needs. Based on such insights, the Company continuously innovates and renovates. Recent

examples are that of MAGGI Tomato Chatpat, a mix of Tomato,

Ginger, Garlic & Coriander and Maggi Tomato Pudina mix of

Tomato, Mint & Coriander, MAGGI Teekha Masala mix of Tomato,

Cumin, Chillies & Coriander.

Maggi Pichkoo

Pichkoo is a small doy pack which makes MAGGI Tomato Ketchup

affordable to a host of new consumers. Alongwith affordability, it's

packaging makes it easy to handle and carry. It's endearing name,

packaging and great taste evoke a resounding reaction.

Maggi Healthy Soups

Nestlé pioneered the dehydrated soups market in India and was the first to introduce tasty and

convenient packaged soups. The new MAGGI Healthy Soups have been carefully prepared through the

Research and Development efforts of Nestlé Group and are even more delicious, quick to prepare,

convenient and healthy. Taste Bhi, Health Bhi. MAGGI Healthy Soups contain real vegetables, are low

at, low cholesterol and free from synthetic colours. These soups are available in 10 delicious variants.

MAGGI MAGIC Cubes

Maggi Magic Cubes are taste enhancers - "Chutki bhar Jadoo!" MAGGI MAGIC Cubes are available in

two flavors’ - Vegetarian Masala and Chicken.

STRATEGIES OF MAGGI

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Maggi has also its own strategy to cover the market. Let us see the Initial strategies of Maggi:-

Maggi has faced lot of hurdles in its journey covering India.

The basic problem the brand faced was that of the Indian Psyche.

Initially Nestle tried to position the Noodles in the platform of convenience targeting the working

women.

However, the sales of Maggi did not picking up despite of heavy Media Advertising.

To overcome this, NIL conducted a research.

NIL's promotions positioned the noodles as a 'convenience product', for mothers & as a 'fun'

product for children.

The noodles' tagline, 'Fast to Cook Good to Eat' was also in keeping with this positioning.

They promoted the product further by distributing free samples. Giving gifts on return of empty

packets, etc.

Maggi Cuppa Mania’s introduction stage33 | P a g e

Aims at ‘food on the move’ concept.

Taste differs from authentic maggi.

Offers delicious taste combined with goodness of real vegetables

Is convenient to make – Only boiling water needs to be added

Comes packed with Power of Calcium

In addition to the delicious new product, MAGGI CUPPA MANIA comes in

attractive sleeved cup.

Taste, Nutrition, Health and Wellness

Profits are low in this stage for the product.

The sales of the product are low.

Firms focus on those buyers who are readiest to buy.

Prices are tend to be high because costs are high

Cost is high because of high promotional expenditure.

Brand Nestle and Maggi back the product

The target audience is anyone who wants food quick

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PRODUCT CATEGORIES TO BE SERVED

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Competition getting tougher

The potential growth of the food processing industry would attract domestic as well as multinational

players. The market has players like Heinz, Mars, Conagra ,Hershey, Pepsi, ITC, Dabur, Britannia,

Cadbury, HLL, Pillsbury, Nestle and Amul, Smithkline Beecham, etc and a host of local manufacturers

offering competition with their established brands on national level.

Key Competitors for Nestle

Category Competitors

Milk Products Amul, Britannia

Chocolate Cadbury, Hershey, Parle, Wrigley, Perfetti

Baby Food Wockhardt

Prepared Dishes HUL, ITC, Nissin, Bambino

While the pie of consumer spending in India is indeed getting bigger, it may not necessarily mean a

higher growth of the company, as newer entrants start to nibble at it. Not to forget the entrenched

players, who are eyeing an even bigger share of the market. While it

faces competition from biggies like ITC and HUL in the ready to eat

segment, competition is also heating up in other businesses. In addition

to this, the competition from the unorganized players and hence, one is

likely to conclude that sterner tests lie ahead for the company. Besides,

the Indian Government has also reduced import duties in certain food

segments, thus making it a bit to further intensify the battle.

Baby food and Instant coffee are categories where brand loyalties are

very strong and Nestle is the market leader. HLL is a significant

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competitor to Nestle in instant coffee; while Heinz is the main competitor in the baby foods market. The

market for culinary products, semi-processed foods such as noodles, ready mixes for Indian ethnic

breakfast and sweets, is largely an urban market. HLL and Indo Nissin Foods are the main competitors

in these product segments. Nestle has also achieved a significant 25% share in the

chocolate/confectionery market. The company has recently expanded its dairy products portfolio to

include, milk, curd and butter. The company also forayed into the bottled water segment with the launch

of its ‘Perrier’ brand in the premium mineral segment and ‘Pure Life’ in the purified water segment.

DISTRIBUTION NETWORK

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It is defined as the supply chain adopted by the company to sell its product to the consumers

one of the biggest strength of nestle is its distribution network.

Description of Distribution channel

Nestle India Limited is involved in the production of food products. It is very prestigious company its food

products are regarded as quality food. It has a wide distribution network operating on a national basis. The

various channels of physical distribution for nestle are Mother Godown. Clearing and Sales Agents, Cash

Distributors and Retailers (outlets).

Mother Go-downs: This is the first line agent in the

distribution network for channels. Stocks are moved on

consignment basis from the main factory to the different

regions. These Mother go-downs are the transshipment

points. These agents in the form of mother go-downs are

given at flat fees by Nestle.

Warehouse/Clearing and Sales agents: These are the

second line agents in the distribution channel. Clearing &

Sales agents generate invoice on the basis of the

requirement of the cash distributors. Once the invoice is

generated by C&S agents and communicated to Mother Go

down then stocks are released to C&S.

Distributors: These are the third line agents in the

distribution network. They are regarded as business partners

by the company. The distributors send orders to C&S agents

on weekly basis. The C&S Agents generate invoice, get the

stock from mother go-down & supply them to the distributors. Nestle never provides goods to cash

distributors on credit. Distributors have to pay directly to the company by demand draft or cheque.

Distributors have to work within the overall guidelines provided by the Company.

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Retailers: These are the fourth final line agents in the distribution network. Categories of the retailers are

the following:-

1. Whole sellers

2. Grocery shop also called (Kirana shop)

3. Medical shop

4. Non-conventional outlets like panwalas

The distributors are responsible for the collection of money from the retailers. The retailers are not at the

direct linkage with the principle company, i.e. Nestle retailers are link up with distributors.

Nestle has divided its channel into 10 categories. It is shown below

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Retailer’s Survey

• Key markets covered were- Rohini, Pitampura, Shalimar Bagh, Moti Nagar, Ramesh Nagar,

Saraswati Vihar, Cannought Place, Shankar Market, Rajori Garden, Wazirpur,

• Café Owners, Caterers, Cineplexs, Golf Course Owners, Hospitals, Schools, Colleges most

efficient channels

• Penetration Level much low due to high price and less quantity.

• Wai-Wai, Chings, Smith and Jones, Maggi Masala, Nissan emerged as strongest indirect

competitor.

• Major drawback- PRICE.

• Strongest point- BRAND.

• People willing to order for first time but asking for more sampling.

• Need to tap more outlets and search for new outlets

• Catered to new outlets in the form of small eating joints and cafés.

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RETAILER’S SURVEY ANALYSIS

This survey was undertaking to understand the market from the broad perspective. This has

enabled me to understand the needs and the present supplies of the market. Through this survey

I was able to gather the general preference of the consumer when he or she plan to have a short

snack or a short lunch. The need of the consumer and the supplies in the market have helped in

understanding that the customers preference would be to get a quick, hygienic, easy to carry and

dispose off kind of a supplement that would not be very expensive.

Q1. Are Would you like to add maggi cuppa mania to your menu?

75% of respondents are aware of maggi cuppa mania, while 25% of respondents still not aware

of it, reason being lack of promotion. This awareness would help in establishing maggi cuppa

mania the institutional pack by making them aware of the benefits of the pack. This would help

us to a very great extent to launch the product into the market. The knowledgeable consumer

would be able to ask for the product when it is launched or enquire about the product, thus

facilitate the marketing route and selling of the product.

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Q2. What is the most preferred snack?

In the survey 43% of retailer’s have seen higher sales in the demand of maggi noodles followed

by Wai – Wai a new brand in the market by Chaudhary Group followed by other snack

providers in the same segment. Thus it can be said that the maggi brand is the preferred one,

thus enhancing the changes of maggi cuppa mania on basis of band consciousness. Maggi

Cuppa Mania being a totally different product and having a completely different taste would

take time getting the acceptability, but the maggi brand is going to facilitate the selling and

marketing of the growth. There is a lot of competition in the segment which can cause a lot of

fiction but the maggi brand would finally surface.

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Q3. What comes to your mind when you think quick snack?

When in a hurry, it has been seen that customers prefer to take food along with then or buy

something that is quick to get and easier to finish. It has been seen that grilled sandwiches were

the highest preference of the consumers followed by chowmein, pastas, maggi etc. this would

suggest that the scope for maggi cuppa mania is quite for its filling and mobile property. The

most common type of food on the move, which is filling just as much would be Grill

sandwiches and chowmein as it has been in the market for a very long time. The customer has

been finally able to accept the product due to its duration, in the same way it can be accepted

that maggi cuppa mania can also get acceptance just like maggi had when it launched it product.

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Q4. What shares of snacks are sold more readily at your outlets?

It has been observed that the general professional who prefer to take lunch on the move prefer

Indian snacks like samosas and pakoras followed by sandwiches and patties coming next.

Momos and chowmein followed by maggi noodles and wai- wai. The customer preference is

shifting from heavy snacks to lighter ones thus providing a scope for maggi cuppa mania.

Though the preference is shifting from heavy to lighter snacks but it can also be seen that the

original, i.e. the home products are the ones that are at an upper edge, but if the shift continues

the success of maggi cuppa mania can be expected to come with time.

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Q5. What is the customers take on price of Maggi Cuppa Mania?

The customers coming on these joints for fast food find maggi cuppa mania priced on a little

higher side as compared to the quantity it caters to, thus an institutional pack may be helpful

here as the vendor can price cuppa mania according to the need at that particular time. Overall it

can be observed that there are various types of consumers, like the executives, managers, clerks,

salesmen etc. the overall demand and the need of each consumer is very different from the other.

It can therefore be possible maggi cuppa mania no doubt can is comparatively expensive can

cater to its customer group by serving in what it basically excels.

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Q6. Reason for picking up maggi cuppa mania among the rest?

Among the customers picking up maggi cuppa mania it has been noticed that the first outlook of

the customer would be hygiene followed by its mobile property and its quality. The price of the

product that we have to offer may be a little too high but it has also been observed that the

consumer of today has become all the more health conscious, he or she would prefer to go in for

a healthy alternative or go on without anything, but it is usually very difficult to sustain. The

quality of the product is backed by nestle and maggi, the product is ready made and only needs

to be helped with hot water making it hygienic enough. The quantity of the product is sufficient

to fill the stomach of one individual, as it has 50gms dry contents and totals to 150gms on

preparations. Maggi cuppa mania is easy to carry. Thus the scope is maggi cuppa mania is high,

especially a hit for busy executives.

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Q7. According to you, what is one thing in maggi cuppa mania which could outplay other

players in the market?

Maggi having a very strong brand name has been able to capitalize most on that followed by its

convenient package styles. Maggi is an age old brand and has been trusted by the people over a

very long time period. The taste of the product is different from the authentic maggi served over

the years; this is going to be a change for the people. The packaging is very innovative and very

convenient, plus it as nutritional values from the leguminous plant and it has calcium in it .This

kind of a product would be useful for people moving on the move. Overall the product meets the

average need of the consumer thus may be accepted in the market.

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Q8. In your opinion, what is the major reason for low sales of the product?

The main reason for the low sales of maggi cuppa mania would be that the price of the product

is a little on the higher side as compared to the products that cause stiff competition. The price

of the retail pack is fairly competitive with others on the area, but the price offered to the

retailers for the institutional pack is rather high, which does not leave the retailers with a good

enough profit margin. The next in line would be the taste and quality of the product, there are

no questions about the quality of the product with the nestle and maggi brand name backing it,

but the taste of the product is different from authentic maggi which will take some time getting

used to. The product can gain further momentum of the retailer pushes the product to its

prospect consumer, but there are not as many schemes for the retailers to provide for enough

promotion from the retailers end. These are a very important factor that needs to be taken care as

they impact the sales of the product.

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Q9. What is the average spending of the consumer on food snacks on the move?

Taking and overall analysis as to how much an individual is usually willing to spend on an

average during lunch hour or for a short snack. It has been observed that the average consumer

is not ready to spend too much money. The average spending is mostly in for the Rs. 25 to 35

band followed by Rs. 10 to 25 range. The consumers want something not too expensive but also

filling, quick, easy and disposable. It can thus be inferred that if the product is ranged in the

price band below Rs. 40, the route of marketing and selling would be more successful.

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Q10. According to you what all promotional aspects need to be considered for enhancing sales

of maggi cuppa mania?

For the purpose of promotion it can be said that any form of advertising to make the product

more known and appealing to the customer can be undertaken which will benefit the coming in

all. Maggi is a well known brand that has a great customer appeal; this would need a little bit

more prompting, for the product to gain its market share. The retailers feel that the advertising

in the form of hoardings and banners will help in getting the product in to the consumers’ eyes.

The promotional schemes extended towards the retails will help push the product further.

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Marketing StrategyAvailability and Visibility are the two main factors that contribute to products success in the

market. My project also focused on determining the current availability and analyzing the

visibility program of maggi cuppa mania.

The ROUTE TO MARKET determines the way product reaches the customers. A proper and

definite route to marketing strategy is required which will help a long way in improving the

distribution network and will increase the availability of maggi cuppa mania among various

channels in the market. The route to marketing strategy for maggi cuppa mania which focuses

on each and every area in the market would be such that we would have to look for prospect

dealers. To explore the region, with the aim of covering and converting each and every school,

college, hospital, café, small eating joints, cineplex’s, golf courses, tuition centers and aviation

sector thus expanding exponentially the number of outlets serving.

Maggi Cuppa Mania, institutional pack has been launch by Nestle basically for café owners,

local vendors, golf course caterers, hospital cafeteria managers, cineplex food and beverage

department etc. where these institutions can prepare and sell maggi cuppa mania. This product is

different from the retail pack; here we provide the institution with a large pack which contains

12 smaller sachets of maggi cuppa mania. The total pack costs Rs. 144 only i.e. 12 per sachet

along with a glass, spoon and lip which amounts to Rs. 1.50p. The final costing of each pack

amounts to Rs. 14.50p each.

The approach has to be in such a manner that at first we need to understand the current market

position and the consumer wants and needs, accordingly can we launch the product in question.

In order to understand the requirement of the consumer we first approached the café managers,

vendors, and food and beverage managers of various fast food or eating joints to understand the

consumer psyche. Through the survey we found out that the consumer’s lifestyle is such that

he/she is not able to spare time for himself/herself, they want something that is quick,

convenient and easy to carry, in short that want ‘food on the move’. The consumer now is much

more aware of want he/she may eat; they are more brand, health and hygiene conscious.

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Through this survey, the inputs that were gathered from various vendors we are able to

understand the need of the consumer and also their preference, it was also gathered that the

consumer is not willing to spend too much either. The most common of the food or snack that

would be preferred by the consumer would be something that he/she is well aware of and used

to. The samosa’s, pakora’s, grill sandwiches, chowmein, momos are something that have been

readily available in the market over a significantly long period of time; these are some of the

consumers first preferences.

The launch of maggi cuppa mania in the market considering the need of the hour could be very

successful. The product could be an instant hit with the busy executives, the people who want to

save every minute of their time. Maggi cuppa mania is something very convenient, takes only 4

minutes cook, and can be very filling. One doesn’t need to wait for maggi cuppa mania to cook,

all they need is a cup with 100ml. hot water, and the cup is covered and can be carried while it

cooks, thus saving time.

The marketing for the product was done in a way from the point of view of the dealers, the first

being to gain the attention of the dealers, this now being really hard as the band name Nestle

helped initiating and introducing the product to the dealers, they were interested in the new

product offered by Nestle. Gaining the attention of the dealer towards the product was not

really difficult, with Nestle and Maggi brands backing the product.

The next step being to get the interest of the dealer by highlighting the points from the dealers

views point. Here we made him aware of the overall cost of the product, then we discussed all

the other details, like there being no additional logistic costs. To get their interest we made them

aware about how the institutional pack was different from the retail pack, the MRP was been

inscribed on the entire pack but there is no MRP on an individual sachet. This would mean that

they can put any price to the cup depending on the market conditions.

The next would be to make the dealer desire for further details; we have to tip him with some

useful information that would make them more inquisitive about the product. Here after we have

the complete attention of the dealers we can incite the curiosity and the desire to know more and

appreciate the product altogether. We showed him all the possible help that nestle was willing to

provide the dealer with and all the possible benefits that would accompany.

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The final step being to take to action that would initiate the dealer to finally want to accept the

product and add it to the menu; for this we provide the dealer with a couple of samples and

demonstrate so that we can finally convince into maturing a deal. The final step would be the

follow – up and support so that we keep in touch with our dealers and make sure that with time

in due course the effort turns into a deal.

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Maggi cuppa mania has nutritional properties like calcium and the goodness of real vegetables.

After consider the various positives, it was inferred that not only the busy executives could

benefit from the product but also the places where the duration to serve food is too short. We

went to various vendors in Connaught Circus, North and West Delhi to promote maggi cuppa

mania to our prospect dealers. On having met them we discovered that maggi cuppa mania was

a little bit expensive and the quantity offered was a little less, this would cut down of the

dealer’s margins and also hinder sales for being too expensive. This lead to the elimination of

small vendors, the food provided here was comparatively cheaper and greater in quantity.

Maggi has a brand name that has been established and has a strong hold in the market over the

years; this was a very helpful in approaching the prospect dealers. We approached the hospital

cafeteria mangers, café managers, cinema managers, golf course caterers and other fast food

joints, the idea was to approach the place were the product would fit and not seem overpriced.

There was resistance from the hospital café managers for the product being a little overpriced

and having health issues. Next in line we approached caterers handling the supplies for a few

golf courses, where the need for something light, disposable, easy to carry and serve would be

much appreciated. Along side we contacted the cinema managers of various multiplexes to work

out a deal considering that their service time is comparatively less, ranging from 10 to 15

minutes only and a gap of not more that 5 to 10 minutes between the interval of two different

audi’s and sometimes less.

We contacted almost all the hospitals in north and west Delhi and found that the product was not

a very good success as the product turned out rather expensive for the dealers, the hospitals

being mostly run by the government are supposed to have all the material served at a fairly low

price. Maggi cuppa mania would have to be sold a price range between Rs. 20 to 30, so as to

benefit the dealer in the exchange, which did not work out as expected. There was an order

placed, then the dealer did not get a return on the risk that he took.

We then went to a couple of caterers supplying lunch and snacks in offices and other institutions

so that we could tap them to add maggi cuppa mania to their menu lists. There was a lot of

follow up to be done in this area, as they doubt the success of the product. The caterers were

apprehensive if the product would be accepted as maggi cuppa mania has a new taste all

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together, different from that of the authentic maggi. The product would need a lot of prompting

and a great deal of promotion from dealers end. A deal did

The next in line were the cineplex, we approached multiplexes like PVR cinemas, Adlabs Big

Cinemas, Wave cinemas, M2K cinemas, Fun cinemas, Vishal cinemas, Janak cinemas etc. the

cinemas managers were very understanding and approving bout maggi cuppa mania. We had a

discussion about the product being launched at their various outlets. PVR cinemas were the first

that we approached and the response was very positive, they were provided with samples and

they even accepted the product. PVR cinemas has a condition of signing an ANM contract

before adding any product to their menu, but this is not part of Nestles policies, thus the deal

could not be materialized. M2K cinemas has been the latest deal that was matured, the talk is on

with other cineplex’s.

The strategy, target force and methodology has been very well explained below with the help of

a flow chart below. Here I have explained all the steps that were taking form the basic step to

developing a marketing route for maggi cuppa mania.

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MAGGI CUPPA MANIA

Understand the market conditions

The Prospect Market that could be penetrated

The Market that could

not be penetrated

Market Survey

Schools

Colleges

Tuition Centers

Small vendors

Cineplex’s

Golf courses

Hospitals

Cafés

Small eating joints

Understanding the need of

the consumer

Easy

Quick

Disposable

Not too expensive

Quality

Taste

Trust

Hygiene

Understanding need of

retailer/dealer

Product suiting the customer need

Promotional schemes

Secure profit margin

Facilitate advertising

AchievementsFindings

The product is a little expensive

The taste is different

Quantity is less

Masala contents need variation

More flavors needed

Jaipur Golden Hospital were the first deal

Deal has been matured with M2K Cinemas.

Deal materialized with Shou Hospitality (golf club catering)

Product accepted for outlets of Embassy Hostel.

Product Development Process

New Product Development is a process that is designed to develop, test and consider the viability of the

products which are new to the market in order to ensure the growth or survival of the organization.

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STAGES IN NEW PRODUCT DEVELOPMENT

New product development in respect of intrinsically new products goes through these important stages:-

Generating New Product Ideas: - New products ideas may emanate from customers, dealers,

in-company sources, including the market research group and external research organizations.

Consumers problem are the most fertile ground for the generation of new product ideas. R and

D staffs and salesmen are also sources of new product ideas.

e.g.: The development of maggi cuppa mania was done taking into consideration the changing

lifestyle of the consumer of today. The idea is to make something for “food on the move”.

Idea Screening: - The second stage of new product development is idea screening. In this

stage, screening of products takes place to spot good ideas and drop poor ones as soon as

possible. Ideas are also checked for technical feasibility, financial viability and marketability.

The business analyzes the product to evaluate its demand, marketability and profit potential and

given ideas rating according to marketing production and strategic factors takes place.

Criteria for evaluating new products are as follows:-

Is there sufficient demand?

Will it be profitable?

Does it fit the firm’s image?

What is the likely payback period?

What is the state of the market and competition?

The more attractive looking ideas pass on to the concept testing stage. Here we have developed

the product but we need to provide people with sample so as to get accurate understanding the

accurate response of what the product, in this case, maggi cuppa mania would have. The taste

and preference is the one that matters the most in this case.

Concept Development and Testing: - This stage is the detailed version of new product idea

stated in meaningful consumer terms. Turning of ideas into Tangible products that consumer

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perceive as being valuable comes under concept development. Testing of new products process

with a group of consumers to find out if the concept have strong consumer appeal or not is

concept testing. This stage has a special importance when totally new products are being

planned for introduction. This would help validate that the product would we well accepted and

that it would be wise to launch it without it turning into a loss. the launch and marketing in a

small but representative market where consumer reactions can be assessed and marketing mix

checked and adjusted

• To forecast the result of a national launch.

• To test the operational effectiveness of the marketing plan.

• To identify possible problems.

• To assess customer reaction.

Marketing Strategy Development: - From the stage of concept development and testing new

product travels to the stage of market strategy development. In this stage an initial marketing

strategy is designed for a new product based on the product concept. Formal market research is

also carried out to assess the products market potential. In this stage we approach the customers

as well as the retails so as to get adequate feedback and develop a marketing strategy to meet

the market needs.

Actual Development of the New Product: - In this stage, the firm develops the product as

such. R and D turn the idea into product. This stage is concerned with design, materials,

production processes, quality and safety. Developing the product concept into physical product

to ensure that the product idea can be turned into a workable product.

Answers are sought to questions like: -

• Is the product the part of the brand by all means?

• Will a change work, is it reliable?

• Should it be different from its parent brand?

• Should it be separated and given a different individuality?

• Does design allow it to be made efficiently?

• Does it will be at cost which allows for profits?

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The concept of new product can be described as follows:-

The products open up an entirely new market.

The product adapts and replaces an existing product.

A product significantly broadens the market for an existing product.

An old product introduced in a new market.

An old product packaged in a different way.

An old product marketed in a different way.

The need to develop a new product comes up when:

To add product portfolio.

To replace declining products.

To take advantages of a new products.

To maintain/increase market share.

To defeat rivals.

To keep up with rivals.

To maintain competitive advantage.

To fill a gap in the market.

To bring new customers.

The use of a new product is: when a new product can be used to increase or to defend market share by

offering more choice or updating older products. It can be diversified into new markets and appealed to

new segments. New products help to improves relations with distributers. Firm’s reputation can be

maintained by new product. It makes better use of the organizations.

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Competitive analysis, as the name implies, is an exploration of the companies in a given industry sector or market niche that are competing with your company s products or services for market share.

• In Maggi Cuppa Mania, average margin offered by local players almost double.

• Maggi Cuppa Mania can emphasize on quality and taste and health factor especially for working professionals, kids and families at adventure parks and cinema halls.

• Baby food and Instant coffee are categories where brand loyalties are very strong and Nestle is the market leader. HLL is a significant competitor to Nestle in instant coffee; while Heinz is the main competitor in the baby foods market. The market for culinary products, semi-processed foods such as noodles, ready mixes for Indian ethnic breakfast and sweets, is largely an urban market. HLL and Indo Nissin Foods are the main competitors in these product segments. Nestle has also achieved a significant 25% share in the chocolate/confectionery market. The company has recently expanded its dairy products portfolio to include, milk, curd and butter. The company also forayed into the bottled water segment with the launch of its ‘Perrier’ brand in the premium mineral segment and ‘Pure Life’ in the purified water segment.

SWOT ANALYSES

STRENGTH

Access to nestle’ s proprietary technology brands and expertise Strong and well differentiated brands with leading market share Ongoing product innovation and renovation to convert consumer insight Distribution structure that allows wide reach and coverage. High quality and safe food products at affordable prices endorsed by the guarantee seal of Nestle.

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On going product innovation and renovation, working towards further improvements. Efficient supply chain

STRENGTH

WEAKNESS

ability to pass through cost Increases in price in smaller towns Complex supply chain configuration

OPPORTUNITY THREAT

OPPORTUNITY

Potential for expansion Development of modern retail formats WEAKNESS

High brand awareness of Indian consumer Leverage Nestle technology to develop more products that provide nutrition health and

wellness.

Growing package and canned food market in India by 15% annually. Potential for expansion in the small towns and other geographies, through increased penetration

THREATS

Competitive environment with diverse players. Rising prices of raw materials and fuel. Govt. intervention in getting key raw material, change in fiscal benefits/ laws.

SWOT Analysis of Maggi Cuppa Mania

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STRENGTHS

Strong Brand Recognition & Trust

Clear Identity (Maggi)

Healthy, Tasty

Appealing/Colorful Packaging, handy

Encourages impulse off take

(provided good visibility)

Has nutritional values

WEAKNESSES

Inadequate margin/schemes

Lack of awareness

Differential pricing (the dealer has the option of pricing it on their own depending upon the market, so no uniformity of prices)

Lacks advertising

Supplied in small packing

Only one flavor available

OPPORTUNITIES

Increasing popularity of healthy food.

Focus on woking professional as well as families.

Get new flavors into the market.

Tremendous scope in places such as schools, colleges and hospitals as well as Nescafe Café’s/Corners

THREATS

Market primarily driven by Heavy Schemes offered by competition

Competition growing strong

Cost Disadvantages is enabling the competition to take a head start.

Existing companies are coming up with new schemes and product ranges.

SWOT ANALYSIS

RECOMMENDATION (TOWS Analysis)

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SO

promote heavily through activities like sampling in schools/colleges to increase awareness

Graduate to vigorous marketing once the product has gained momentum.

Encourage shopkeepers & canteens managers to stock in such a manner to increase visibility and increase impulse purchase

Promote the health benefits of like vegetable base and calcium filled, hence creating a new category of maggi cuppa mania

WO

Key Channels to focus: Alternate Trade Channels, line A and B+ schools and pvt hospitals, ALL Nescafe Café’s, etc.

Innovative Ads showing kids and professional as the decision makers + Sustained media support

Ensuring availability in catchment area post SAMPLING + Sustained Supply (ALL variants)

Margin (20-30%), Schemes (5+1),

Activities like one day drive, one day special schemes.

ST

Competitive/Simplified Pricing

Incentives (for expanding the base of the product and Growth)

Display offers on maggi cuppa mania.

New and exciting flavors.

WT

Lack of offers and trade discounts might discourage shopkeepers to place the product appropriately

Key Achievements

2 packs, 24 cups, lids, spoons sold at Jaipur Golden Hospital.

Product accepted by M2K cinemas, launch underway.

Product accepted at Balaji Hospital, order to be placed soon.

Product to be launched at Embassy’s CP outlet.

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Key Challenges

Convincing Dealers to go with a new product.

Trying to make a sale when the substitutes are at a lower price.

Trying to tap a new sector for the product eg. Aviation and Cineplex’s.

Changing dealer preferences from its present product to switch to a new

product.

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Findings

The potential of the Indian market is really good, the prospect of the growth of

maggi cuppa mania in the Indian market is really high.

The market is filled with a lot of similar products, there is intense competition

with a lot of products already well established in the market for a really long

time.

The strategy is to go ahead a get prospect, potential and big dealers to deal into

the product, that would help gain the trust which will further encourage the

market and facilitate growth of the market.

The possible available substitutes of the product are Wai-Wai, Chings, Smith

and Jones, Maggi Masala, Nissan.

The strategy would be to launch the product with a few schemes to

motivate the dealer to go ahead and promote the product in question.

The channels of distribution would be to have the autehrised dealers;

Sheetal distributors to do the task.

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Recommendation

Price of Maggi cuppa mania could be revised to suit its potential customer base

and enhance sales at all levels.

The quantity of the product could be increased.

The masala mixture can be revised as people find it a little spicy.

The product could be launched with more flavors as maggi cuppa mania.

Provide attractive promotional offers to the retailers, thus retailers will

purchase more and sell more.

Try to increase the margin for the retailers.

To add new customers give free sample of small packs free with the existing

product of the Nestle India Ltd.

Customer feedback should be constantly made so as to know the innovation incase

required in the product.

As customer awareness is more important to increase the market share of any

product more advertisement should be done in the form of hoardings and

commercial advertisement.

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Conclusion

Penetration Level much low at lower mass level due to high price and less

quantity.

Wai-Wai, Chings, Smith and Jones, Maggi Masala, Nissan emerged as

strongest indirect competitor.

Major drawback- PRICE.

Strongest point- BRAND.

To look after the displays, visibility of the products

To arrange the products according to plan gram.

To see that competitor’s product is not lying in our display.

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Limitation High competition given by other existing instant noodle makers.

Taste of the product was not acceptable by the respondents.

The quantity of the product was comparatively less.

The price of the product is higher compared to its similar competitors.

Biasness on the part of retailers and customers in providing the input.

Some respondents not responding due to lack of time.

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Problems Faced

Schools and colleges closed.

Space problem.

Dealers not ready to accept change in product.

Hot water arrangement.

Product too costly.

Change in taste from authentic maggi not preffered.

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Key Learnings

Motivation/Attitude and Importance of ‘One Team’ working

Customer relation management is very essential.

Perseverance and follow ups keep us moving.

Knowledge of the area and market requirements are basic.

Printout handy for Product Details (MRP/Inputs/Shelf Life/Configurations) –

Improves Order Booking Efficiency

To address grievances of customers patiently and ALWAYS follow up/get

back with response to the retailer – improves credibility and trust.

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Progress Report

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BIBLOGRAPHY

www.google.com

www.nestle.com

www.nestleindia.com

www.wikipedia.com

www.diaryindia.com

http://www.nestle.com

http://www.aphrodite-chocolates.co.uk/history_chocolate.htm

http://www.google.com

http://www.cadbury.co.nz/carnival/index.htm

http://www.packaging-technology.com/…/cadbury4.html

http://www.chocolatereview.co.uk

http://en.wikipedia.org/wiki/preference

Marketing management- Philip kotler

Concept : AIDA theory

SWOT Analysis

New Product Development

Route to market a new product

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APPENDIXRETAILER SURVEY

Name of the outlet: Mobile no. :

Area: Channel:

Q1. Would you like to add maggi cuppa mania to your menu?

o Yes

o No

Q2. What is the most preferred snack?

o Maggi Noodles

o Wai-Wai

o Chings Instant

o Top Ramen

o Smith and Jones

o Others

Q3. What comes to your mind when you think quick snack?

o Nestle Maggi

o Maggi cuppa mania

o Wai – Wai

o Sunfeast pasta

o Grilled sandwich

o Chowmein

Q4. What share of snacks are sold more readily at your outlets?

o Maggi Noodles

o Wai – Wai

o Sandwiches and patty

o Samosas and pakora

o Momos and chowmein

Q5. What is the customers take on price of Maggi Cuppa Mania?

o Expensive

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o Reasonable

o Cheap

Q6. Reason for picking up maggi cuppa mania among the rest?o Price (fairly priced)

o Quantity (less wastage)

o Hygienic

o Easy to carry on the move

Q7. According to you, what is one thing in maggi cuppa mania which could outplay other players in the market?

o Strong brand recognition

o Good taste and quality

o Attractive packaging

o Nutritional factor

Q8. In your opinion, what is the major reason for low sales of the product?

o Pricing

o Packaging

o Taste and quality

o Preference towards other products

o Lack of Schemes

Q9. What is the average spending of the consumer on food snacks on the move?o Rs. 10 – 25

o Rs. 25 – 35

o Rs. 35 – 50

o Rs. 50 – 100

Q10. According to you what all promotional aspects need to be considered for enhancing sales of maggi cuppa mania?

o Hoardings and banners

o Schemes

o Advertising

o Dangler

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Suggestions & Recommendations if any:

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