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TABLESOFCONTENTSCHAPTERCONTENTSLISTOFTABLESLISTOFGRAPHSPAGENOIIIII

CHAPTER-1INTRODUCTIONIntroductionaboutthetopic1

THESTUDYDESIGNImportanceandneedforThestudyObjectivesofthestudyCHAPTER-2SamplingStatisticaltechniqueLimitationsofthestudy34778

PROFILEOFTHECOMPANYCompanyProfileCHAPTER-3CompanyHistoryCompanyDevelopmentsCompanyachievementsCompanyPresentpositionCompanystructureCHAPTER-4ANALYSISANDDATAINTERPRETATION434865686910184042

CHAPTER-5SUMMARY,FINDINGSANDSUGGESSTIONSBIBILOGRAPHYANNEXURE

Dr.JYOTHIRMGYIDEGREECOLLEGE,ADONI

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LISTOFTABLESTABLENOCONTENTS123456789101112131415

PAGENO54555657585960616263646

CustomersremembrancetowardsmaggibrandwhentheythinkaboutnoodlesindustryCustomerawarenesstowardsmaggi

Sourceofawarenesstowardsmaggi

Whycustomerschoosingmaggi

CustomersopiniononTaste

Customerslikenesstowardsmaggi

CustomersopiniononPackagechangeofmaggi

Customerssatisfactiononpriceofmaggi

Customeropiniononpricechangeofmaggi

Customersopiniononcolourchangeofmagginoodles

Customersatisfactiononflavor,tasteofmasalaofmagi

Customersfeelingoninformationgivenonmaggipackage

Customersratingonqualityofmaggi

CustomersrequirementonpromotionalactivitiesofmaggiOverallratingtowards

Maggi

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LISTOFGRAPHSTABLEON1234567891011121314

PAGENO54555657585960616263646

CustomersremembrancetowardsmaggibrandwhentheythinkaboutnoodlesindustryCustomerawarenesstowardsmaggi

Sourceofawarenesstowardsmaggi

Whycustomerschoosingmaggi

CustomersopiniononTaste

Customerslikenesstowardsmaggi

CustomersopiniononPackagechangeofmaggi

Customerssatisfactiononpriceofmaggi

Customeropiniononpricechangeofmaggi

Customersopiniononcolourchangeofmagginoodles

Customersatisfactiononflavor,tasteofmasalaofmagi

Customersfeelingoninformationgivenonmaggipackage

Customersratingonqualityofmaggi

CustomersrequirementonpromotionalactivitiesofmaggiOverallratingtowards

Maggi


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CHAPTER-1INTRODUCTION


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MAAGINOODLESPRODUCTMODIFICATIONANDBRANDMANAGEMENT

INTRODUCTIONMaggiistheleaderintheInstantNoodlescategorybecauseitisconstantlyimprovingitsunderstandingoftheconsumertogivethemexcellentandtastyproductsthatprovidenutrition,health,andwellness."---MartialRolland,chairmanandmanagingdirector,NestlIndiaLtd.,MaggihasmanagedtoenterIndianhomestochangethetraditionalfoodhabitsofIndianchildrenontheirpromiseofconvenience.ThisbrandhasunderstoodthepsychologyofIndianmothersandpositioneditselfformother-childindulgence."-BusinessWeek,aprominentbusinessmagazine

NestlIndiaLtd.(NIL),amajorFMCGcompanyinthecountryandasubsidiaryoftheSwitzerland-basedNestlGroup,launchedanewinstantnoodlesproductcalledMaggiDalAttaNoodles(DalAttaNoodles)underthepopularMaggibrand(RefertoExhibitIforabriefprofileofNIL).TheDalAttaNoodlesweremadeofwholewheatandcontainedpulses,andpositionedasa'healthyinstantnoodlesproductthatprovided20percentofthedailyRDAofdietaryfiberandproteinforachildagedbetween7and9.Thiswasthelatestadditiontotherangeof'healthy'productsNILhadbeenlaunchingovertheearly2000s.NILofferedavarietyofc

ulinaryproductssuchasinstantnoodles,soups,saucesandketchups,cookingaids(seasonings),etc.,undertheMaggibrand(RefertoExhibitIIforMaggi'sproductportfolioasofmid-2006).Ofthese,instantnoodleshadbeenNIL'smainproductcategoryintheculinarysegmentsincethelaunchofMaggi2MinuteNoodles(Magginoodles)in1982.Overtheyears,MagginoodlesbecameapopularsnackfoodproductinIndia.


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Duringthe1990s,thesalesofMagginoodlesdeclined,andthiswasattributedpartlytothegrowingpopularityofTopRamen,anotherinstantnoodlesproduct.Inordertoimprovesalesandattractmoreconsumers,NILchangedtheformulationofMagginoodlesin1997.However,thisprovedtobeamistake,asconsumersdidnotlikethetasteofthenewnoodles.InMarch1999,NILreintroducedtheoldformulationofthenoodles,afterwhichthesalesrevived.Overtheyears,NILalsointroducedseveralotherproductslikesoupsandcookingaidsundertheMaggibrand.However,theseproductswerenotassuccessfulastheinstantnoodles.Intheearly2000s,Maggiwastheleaderinthebrandedinstantnoodlessegment,andthecompanyfacedlittleseriouscompetitioninthissegment.Intheearly2000s,NILstartedintroducingnew'healthy'productsinaccordancewiththeNestlGroup'sglobalstrategytotransformitselfintoahealthandwellnesscompany.

NILalsoadoptedthesamestrategyfortheMaggibrandwiththelaunchoftheMaggiVegetableAttaNoodles(VegetableAttaNoodles),a'healthy'instantnoodlesproductmadeofwholewheatflourandvegetables(insteadofrefinedflour),in2005.TheDalAttaNoodleswereanothervariantofMaggi'shealthyinstantnoodles.provedtobeamistake,asconsumersdidnotlikethetasteofthenewnoodles.InMarch1999,NILreintroducedtheoldformulationofthenoodles,afterw

hichthesalesrevived.

Overtheyears,NILalsointroducedseveralotherproductslikesoupsandcookingaidsundertheMaggibrand.However,theseproductswerenotassuccessfulastheinstantnoodles.Intheearly2000s,Maggiwastheleaderinthebrandedinstantnoodlessegment,andthecompanyfacedlittleseriouscompetitioninthissegment.

Intheearly2000s,NILstartedintroducingnew'healthy'productsinaccordancewiththeNestlGroup'sglobalstrategytotransformitselfintoahealthandwellnesscompany.NILalsoadoptedthesamestrategyfortheMaggibrandwiththelaunchoftheMaggiVegetableAttaNoodles(VegetableAttaNoodles),a'healthy'instantnoodlesproductmadeofwholewheatflourandvegetables(insteadofref

inedflour),in2005.TheDalAttaNoodleswereanothervariantofMaggi'shealthyinstantnoodles.


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MAGGIBRANDMagginoodlesisabrandofinstantnoodlesmanufacturedbyNestl.ThebrandispopularinAustralia,India,SouthAfrica,Brazil,Nepal,NewZealand,SriBrunei,Lanka,Malaysia,Singapore,

Bangladesh,Pakistan,andthePhilippines.Inseveralcountries,itisalsoknownas"maggimee"(meeisIndonesian/Malayfornoodles).MagginoodlesarepartoftheMaggifamily,aNestlbrandofinstantsoups,stocks,andnoodles.InMalaysia,therearefriednoodlesmadefrommagginoodlesknownasMaggigoreng.Magginoodlesrecentlyintroducedanewvarietyofitsnoodles,tocaterforthehealthconsciouslike'NoMSG','LessSalt',and'NoTransfat'.Awholewheatflourbasednoodlevariationmarketedbythename"VegetableAttaNoodles"hasbeenintroducedinIndia(AttaflourisusedinpreparingmostformsofwheatbasedbreadsinIndia)andcaterstohealthconsciousbuyerswaryoftherefinedflourusedintheregularMagginoodles.ThismovehelpsthebrandinIndiaassuburbanmothers,whofeedthenoodlestochildrenasanafterschoolsnack,aretheprimarycustomersofthebrand.Recently,alineofricenoodlesandwholewheatwithpulses,carrots,beans,andonionshasalsobeenintroducedinIndia.Infact,"Maggi"hasbecomeawellknownbrandforinstantnoodlesinIndiaandMalaysia.NestlIndiaLtd(NIL)offeredavarietyofculinaryproductssuchasinstantno

odles,soups,saucesandketchups,cookingaids(seasonings),etc.,Ofthese,instantnoodleshadbeenNIL'smainproductcategoryintheculinarysegmentsincethelaunchofMaggi2MinuteNoodles(Magginoodles)in1982.Overtheyears,MagginoodlesbecameapopularsnackfoodproductinIndia.Inmid2008,NewZealandsupermarketsintroducedreplacementformulationsforitsBeef,Oriental,andCurryflavours.Anewfeatureisanextrasachetcontainingdehydratedvegetables.Maggiclaimsthenewrangecontains88%lesstotalfatand86%lesssaturatedfatthantheaverageoftop-three(unnamed)2-minute-noodlecompetitors.ThenewMaggirangealsohasconsiderablylowerfatthanitsownpreviousformulation.However,thesaltcontent


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hasbeenincreasedby31percent.Consumershavenotreactedwelltothenewformulations,complainingthattheywanttheoriginalchickenflavorback.MagginoodlesalsocontaintheadditivesE150dandE627.E150dissometimesmadefrommaize.Claimedtobe"2minutenoodles",TheMagginoodlecakeandseasoningisaddedintoboilingwaterfortwominutesanditisreadyforconsumption.Egg,seaweed,boiledvegetablesorlemoncanalsobeaddedtothenoodlesforabetterflavor.MaggiNoodlesareavailableinalargeassortmentofdifferentflavours.Theyare:

OriginalFlavorChickenCurry(ahealthieralternativeisalsosoldinsupermarkets)KariLetup(ExtremelySpicyCurry)inMalaysiaChicken&CornBeefOrientalMasalaPrawnDalSambar(wholewheatnoodles)DalAttanoodlesAsamLaksaCheesePizza(onlyinSaudiArabiaandSouthAfrica,wasavailableforaperiodoftimeinAustralia)SupTulang(bonesoup)(inMalaysia)ChatpataTomatoStrongerChickenCrispyChickenVegetableAttaNoodles(wholewheatnoodles)ShahiPulao(ricenoodles)ChillyChow(ricenoodles)LemonMasala(ricenoodles)Boerewors(inSouthAfrica)5DEPT.OFMANAGEMENT


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Magginoodlesalsoproducesinstantnoodlesknownas"HotBowl"noodlesnamed"CuppaMania"inIndia.NewdrinkableMagginoodlesoupsarealsoavailable.BackgroundAMagginoodleisabrandofinstantnoodlesmanufacturedbyNestle.ThebrandispopularinIndia,SouthAfrica,Brazil,Nepal,NewZealand,Australia,Malaysia,Singapore,SriLanka,Bangladesh,Pakistan,andthePhilippines.Inseveralcountries,itisalsoknownas"maggimee"IndonesiancallitmeebutinMalaysiapeoplecallitasnoodle.MagginoodlesarepartoftheMaggifamily,aNestlebrandofinstantsoups,stocks,andnoodles.

InMalaysia,therearefriednoodlesmadefrommagginoodlesknownasMaggigoreng.Magginoodlesrecentlyintroducedanewvarietyofitsnoodles,tocaterforthehealthconsciouslike'NoMSG','LessSalt',and'NoTransfat'.Wholewheatflourbasednoodlevariationmarketedbythename"VegetableAttaNoodles"hasbeenintroducedinIndia.AttaflourisusedinpreparingmostformsofwheatbasedbreadsinIndiaandcaterstohealthconsciousbuyerswaryoftherefinedflourusedintheregularMagginoodles.This

MAGGINOODLESININDIAMaggiComestoIndiateethingtroublesMagginoodleswaslaunchedinIndiaintheearly1980s.CarloM.Donati,thepresentChairmanandManagingDirectorofNes

tleIndiaLtd,broughttheinstantnoodlebrandtoIndiaduringhisshortstinthereintheearlyeighties.Atthattime,therewasnodirectcompetition.Thefirstcompetitioncamefromtheready-toeatsnacksegmentwhichincludedsnackslikesamosas,biscuitsormaybepeanuts,thatwereusuallytheboughtouttype.Thesecondcompetitioncamefromthehomemadesnackslikepakorasorsandwiches.Sotherewerenospecificbuyandmakesnack!Moreoverbothcompetitorshadcertaindrawbacksincomparison.Snackslikesamosasareusuallyboughtout,andoutsidefoodisgenerallyconsideredunhygienicandunhealthy.Theothercompetitor,homemadesnacksovercameboththeseproblemsbuthadthedisadvantageofextendedpreparationtimeathome.Maggiwaspositionedastheonlyhygienichomemadesnack!Despitethis,Nestlfaceddifficultieswiththeirsalesaftertheinitialphase.Thereasonbeing,thepositioningoftheproductwiththewrongtargetgroup.NestlehadpositionedMaggiasaconveniencefoodproductaimedatthetarget

groupofworkingwomenwho


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hardlyfoundanytimeforcooking.Unfortunatelythiscouldnotholdtheproductforverylong.Inthecourseofmanymarketresearchesandsurveys,thefirmfoundthatchildrenwerethebiggestconsumersofMagginoodles.Quicklytheyrepositionedittowardsthekidssegmentwithvarioustoolsofsalespromotionlikecolourpencils,sketchpens,funbooks,Maggiclubswhichworkedwondersforthebrand.

CONCEPTSANDSIGNIFICANCEDevelopingProductStrategiesOnthebasisofthecompanysproductshavetobedevelopedsothatitfocusesononlythosecustomerswhomitisgoingtotarget.Thesestrategiescanbeasfollows:Time-to-marketLowProductCostLowDevelopmentCostProductperformance,Technology&innovationQuality,Reliability,RobustnessService,Responsiveness&FlexibilityTime-to-market:-Thisistypicalofcompaniesinvolvedwithrapidlychangingtechnologyorproductswithrapidlychangingfashion.Pursuitofthisstrategywilltypicallywillleadtotradeoffsinoptimizingproductperformance,costandreliability.LowProductCost:-Thisorientationtypicallywillrequireadditionaltimeanddevelopmentcosttooptimizeproductcostandthemanufacturingprocess.LowDevelopmentCost:-Whilethisorientationisnotascommonastheotherorientations,itoccurswhencompaniesaredevelopingproductsundercontractforotherparties,whereacompanyhasseverelyconstrainedfinancial

resources,orwherea"stealth"developmenteffortisbeingundertakenona"shoestring".ProductPerformance,Technology&Innovation:-Thisorientationfocusesonhavingthehighestlevelofproductperformance,thehighestleveloffunctionalityor


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functionsandfeatures,thelatesttechnologyorthehighestlevelofproductinnovation.Quality,Reliability,Robustness:-Thisorientationistypicalofindustriesrequiringhighqualitybecauseofthesignificantcoststocorrectaproblem(e.g.,recallsintheautomotiveorfoodprocessingindustries),theneedforhighlevelsofreliability(e.g.,aerospaceproducts),orwheretherearesignificantsafetyissues(e.g.,medicaldevices,pharmaceuticals,commercialaircraft,nuclearplants,etc.).Service,Responsiveness&Flexibility:-Thisorientationrequiresadditionalresources(andtheirrelatedcosts)toprovidethisserviceandresponsiveness.

ProductDevelopmentDevelopinganewproductisamajortaskwhichconsidersvariousfactors.Inotherwords,theaimofproductdevelopmentis:ProductionofgoodstomeetmarketdemandAdjustingwiththevariationinquantityrequiredRightpricingoftheproducts.CategoriesofProductDevelopment:IntroductionofnewproductsImprovementofexistingproducts

StagesofProductDevelopmentFindConsumerDesireAnalysingFeasibilityDesignSelectionofProcessandProductionsystemsProcessDevelopment

"MaggihasmanagedtoenterIndianhomestochangethetraditionalfoodhabitsofIndianchildrenontheirpromiseofconvenience.ThisbrandhasunderstoodthepsychologyofIndianmothersandpositioneditselfformother-childindulgence."-BusinessWeek,aprominentbusinessmagazine


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ImportanceoftheProductInthisprojectIhavesurveytheproductextensionandmodificationofMaagiNoodelsNestle,whichareconsumedbypeopleofallages.DuringthisprojectIhaveinteractedwithpeopleofAdoniTown.AfterthisprojectIcametoknowhowpeopleperceivestheseproductsonthevariableslikeage,incomelevels,price,quality,advertisement,satisfaction,taste,packaging,brandloyaltyetc.IalsocametoknowwhichparticularbrandofMaggiNoodelsismostpreferredbypeopleofdifferentagegroups.InthisprojectIhavesurveyedthathowfrequentlyandhowmuchmaaginoodlestheyconsume,whethertheybuysmall,bigorfamilypack.Trendofongoingchangesintheirlikingshasbeenshowninthereport.InthisreportIhavetriedtoexplaintheentireprojectandfactsproductwise.Thismovehelpsthebrandintheseareasofsuburbanmotherswhofeedthenoodlestochildrenasanafterschoolsnackonly.Fromnowtoonwardtheprimarycustomersofthebrandareexactlythesemotherstoo.Recently,alineofricenoodlesandwholewheatwithpulses,carrots,beans,andonionshasalsobeenintroducedinIndia.Infact,"Maggi"hasbecomeawell-knownbrandforinstantnoodlesinIndia.Itjusttakesfewminutestopreparethedish.Theyalsoprovidetastemakeralongwiththenoodles.ThisisveryhandyforallmomsandmostofthechildrenwouldlovetoeatMagginoodles.Allweneedtodoisboilwaterandaddnoodlestoitandkeepitforfewminutes.Theninavesselfrytastermaker,vegetableslikebeans,carrot,onionbutvegetablesareo

ptionaljusttoaddtasteandaddnoodles.Its

areadytoserve.Bothvegetarianandchickennoodlesareavailableinthemarket.Reallyitsafunfoodwhichiseasyforbothmomsandkidstoprepare.TheTaglinesofbrandisas:Firstone,Mummybhooklagihai,thenBas2minute,thenthirdonewasasFasttocook&Goodtoeat,andfinallyHealthbhi,Tastebhi.Thesearefamousamongkids.Thebrandispositionedasahealthproduct.Targetmarketwasinitiallyonlykidsbutnow-a-dayseveryoneduetofastmovinglifestyle.Inmarketing


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strategycompanyisusing360degreemarketingtechnique.Initsbrandingcampaigncompanyispromotingbrandbysponsoringmanykidsevents.Alsoitisspendinghugeamountonelectronicandprintmediaadvertising.Itcanbeseeneasilythatconsumershaveanemotionalbondwiththeproduct.Onseveraloccasionscompanydoesaggressivemarketingbyprovidingfreesamplesoftheproduct.Brandinfocus:MaggiNoodlesThemostpopularbrandinthecountriesisNestl'sMaggi,whichisrrdedinpopularcultureasatwominutenoodle.OtherpopularbrandsincludeTopRamenSmoodlesandCupNoodlesmanufacturedbyIndo-NissinLtd,Ching'sInstantNoodles,AANutritions'sYummy,andWai-Wai,ownedbytheChaudharyGroupfromNepalandIndia.Smith&JonesandChing'ssecretsarealsopopularnewbrandsofinstantnoodlesinIndia.WaiWaiisgainingmomentumandisdominatingmarketinNorthEasternstates,SikkimandwestBengal.ItsuniquetasteandsnacklikefeatureismakingitpopularinotherpartsofIndiaaswell.Localflavorssuchasmasalaandchickentikkadominate.ThemostpopularflavorofTopRamenisknownas"CurrySmoodles";itsflavoringsmimicabasiccurry,includingonion,garlic,coriander,andacurrymasala.Apackagesellsfor1012rupeesinIndia.InIndia,thereisalsogreatdemandforunflavoredinstantnoodles;brandssuchasBambinoandChing'sdominatethemarket.Becauseofincreasinghealthconsciousness,Nestleintroducedaninstantnoodlebasedonwholewheatgrainflour,calledAttaNoodles.Instantricenoodlesarealsoavailableinvariousflavors.

However,Nestls

original"Maggi"masalaflavorednoodlescontinuetobethemostsuccessfulbrandofinstantnoodlesnotonlyinIndiabutintheUnitedStatesforIndianAmericans,aswell.Although,Nestleisyettointroduceamicrowaveableversionof"Maggi"noodles,theircurrentproductscontinuetobeincreasinglypopular.10


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Themostrecentcontroversyconcernsdioxinandotherhormone-likesubstancesthatcouldtheoreticallybeextractedfromthepackagingandgluesusedtopacktheinstantnoodles.Itwasreasonedthatharmfulsubstancescouldseepintothesoupashotwaterwasaddedtocupstyleinstantnoodles.Afteraseriesofstudieswereconducted,variousorganizationsrequestedchangesinthepackagingtoaddresstheseconcerns.

Anotherconcernregardingtheconsumptionoffriedfoods,includinginstantnoodles,isthepossiblepresenceofoxidationproductsresultingfrompoormaintenanceoftheoil.Ifthecookingoilisnotmaintainedatthepropertemperatureorchangedasoftenasnecessary,theseoxidationproducts,whicharesuspectedtoposevarioushealthrisks,canbepresentinthefoods.Properproductionstandardsminimizetherisk.


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PRODUCTDEVELOPMENT

Hypothesisofthestudy:

TofindouttheproductdevelopmentandmodificationofMaggiNoodlesTheotherobjectiveistoknowaboutthecustomersatisfactionlevelassociatedwiththeproductmodificationandthecustomerpreferencelevel.TounderstandtheinfluenceofMaggiNoodlesasaproductmodificationonconsumersmindset.TostudythefactorsaffectingtheconsumptionpatternProductModificationofMagginoodlesintermsofproductdiversity

TheprojectwillbecarriedoutintheformofasurveywhichwillbedoneinAdoniTown,KurnoolDistrict,AndhraPradesh,India.Thepopulationhasbeensegmentedonthebasisofincomelevels(lower,middleandhigherincome)andAge(children,middleandoldagegroup).

Methodologyofthestudy:Theprojectwillbecarriedoutintheformofasurvey.Thiswillincludeprimaryresearchinadditiontosecondaryresearchasstatedbelow.Thesurveyprojectmethodwillbedescriptiveresearchdesign.EachrespondentwillbeinterviewedthroughaQuestionnaire.Thesamplewillbeselected

byasimplerandomsamplingmethod.ThesurveywilladdressthefollowinginformationareaTheobjectiveasspeltoutcanbeelaboratedintospecificinformationareastobestudied.HowdocustomersperceiveMagginoodleasastableproductmodification,their


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Perceptionofnoodlesand

howdotheyassociatethemselveswithMagginoodle?

AretheconsumersawareofMagginoodleproductmodificationortheyassociatenoodleswithsomeotherproduct?DotheyconsidernoodleasahealthyproductortheyareawareofthecompanysstrategyofmodificationittoahealthyproductbythelaunchofsomeofthenewProducts?WhichproductfromtheentirebasketofMagginoodleproductsdoestheconsumersconsiderasthebestsellingproductforMagginoodleandtowhichtheconsumersfrequentlybuy?AretheconsumerswillingtoacceptMagginoodleproductmodification?Ifyourpreferredproductisnotavailableforrepeatpurchasethenpostponesyoupurchaseorswitchovertootherbrand.

PRODUCTIONMODIFICATIONINTRODUCTION

Definition:Analterationinacompany'sexistingproduct.ACCORDINGTOMONASHMARKETINGDICTIONARYAnysubstantialchangemadetotheattributes(size,shape,color,style,price,

etc.)ofaproduct;modificationofaproductisusuallyundertakeninanattempttorevitalizeitinordertoincreasedemand.However,myoldwarningapplies,foryourownsake,pleasebecarefulbeforeyouspendaDr.JYOTHIRMGYIDEGREECOLLEGE,ADONI

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lotofmoneydevelopingit.Firststageyoushouldfindalocal(toyou)PatentAgentandgetapriceoffthemforaninitialassessment.AnyreputableAgent(whoisaCharteredMemberoftheAssociation,willgiveyouafirstmeetingfreeofchargeandwilloutlinethevariouspossibilitiesopentoyou.Inmyexperiencetheywillneedtodoathoroughsearchoftheexistingpatentsforyou,andthatwillcostabit,sogetawrittenestimatebeforeyoucommissionthemoryoucouldrunupsomelargebills.Youcandothisjustbyshowingthemsomedrawingsanddescriptionsofwhattheproductisabout.Thenextstepiftheproducthas'newdesign'meritwillbeforthemtoregisterthedesign.Thatpartoftheprocedureisquitereasonablypricedandwillprotectyourideauntilyoucancreateitintoaworkingproductandthendecidehownexttosafeguardit(maybeinternationallytoo)WItent.TofindaPatentAgentyoucanlookinlocalyellowpagesorbetterstillcontactyourlocalChamberofCommercewhowillbepleasedtoadviseyouonagentsintheirarea.Talktoacoupleofthembyphonetofindonethatyouarehappywith.Don'tbescaredtoaskforreferences,andcheckthemout,beforeyoutellthemyouridea.PleaserememberthatitisimportantNOTtorevealyourideatoanyoneuntiltheyhaveatleastsignedasimpleconfidentialityagreementwithyou.Youcandownloadasimpleonepageform,fromtheinternet,thatwillgiveyouthecorrectwordingtothenbeabletoprintyourownagreement.Makesurethatyougeteachperson(ororganization)thatyoutal

ktosignitBEFOREyougiveanyinformationaway.Ifyoudonotdothisthenassoonasyoutellthem,theideabecomespublicdomainandanyonecanpinchitfromyou.Irepeat,assoonasyoutellanyonepublicaboutyouridea,youhavelosttherightstoexclusivity,sobeultracareful.

Dependingonwhereyouarebasedtherewillprobablybesomekindofa"InventorsClub"typeoforganizationand"BusinessLink"oryourLocal"ChamberofCommerce"willbeableDr.JYOTHIRMGYIDEGREECOLLEGE,ADONI

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totellyouhowtogetintouchwiththem.Theywillbeabletopointyoutowardspeoplewhomayinvestinyouforashareoftheaction.Ifallalsofailsthereisanorganization,thatIamChairmanof,calledtheAdvancedManufacturingGroupforLancashireandifyougotothewebsiteandfillinanenquiryform,theenquirywillbepostedforthememberstoseeifanyonefanciestakingalookatitforyoutodevelopit.ManyproductshavebeencreatedthiswayastheAMGmemberwilloftenhelpwithfinancingforthefirstprototype.AgainthoughyouMUSTgetthemtosignconfidentialityagreementandsuitablywitnessedtoprotectyourasset.Sothenhavingfoundamanufacturertocreateyourfirstprototypeyounowhaveaproduct.Nowifthelawnmowermodificationissomethingthatcouldbecomebigorevenglobal,thenyouwillneedeitheranexistinglawnmowermanufacturerwhoispreparedtomakeunderlicenseforyou,orindeedsetupyourownmanufacturingcompanytoassembletheproductandsellitasanaccessory.Agoodbusinessangelshouldbeabletohelpyouthere.YouwillneedanAccountantwithsettingupbusinessesexperienceandhecanintroduceyoutoinvestorsofthetypeyouneed.ItmightbethatanexistingfirmofLawnmowermakerswilltakeitonforyou(andevenemployyouaspartofthepackageifyourideasaregoodenough)toallowyoutouseyourtalentsondesignworkaloneandyoucanthenchoosetoselltheideaunderlicensetothem,sothateachonetheymaketheypayyouaroyalty,oryoucouldsellthewholethingouttothemforafix

edfee.Thereisalwaystheoption,ifitwillfitonanymakeofmower,thatyoucouldgodirecttotheTelemarketerswhowouldshowandsellitononeoftheshoppingchannels.ThebeautyofthatisthatafteralltheTVviewershaveboughtoneyoucanstillgotothelawnmowermanufacturersandmaybetheytoowillthenadopttheproductfortheirownsalestoo.TheTVmarketers(peopleliketheoldK-Telpromotionsetc)willoftenputmoneyintothemanufacturingsideoftheproduct,tomakestockforyou,ifyoucanshowadesirableitemthathasgoodadvantagesthatpeoplewillwanttobuy.Dr.JYOTHIRMGYIDEGREECOLLEGE,ADONI

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WhateveryoudecideIwouldbepleasedtoknowhowyougetonandIwishyoumuchsuccessandhopemyadviceisofusetoyou.IfyouneedmetogointomoredetailwhenyouhaveyourfirstonecompletedanditworksthenpleaseletmeknowandIwilltrytooblige.Imuststressagainthemostimportantobjectivethatyouhaveatpresentistogettheidearegisteredsothatnooneelsecantakeitawayfromyou.

Meaning:Productmodificationmeanschangingoneormoreoftheproduct'sfeaturesandmayinvolvereformulationandrepackagingtoenhanceitscustomerappeal.Modificationscangiveacompetitiveadvantage,e.g.,acompanymaybeabletochargeahigherpriceandenhancecustomerloyalty.Productmodificationisoftenusedasawayofextendingtheproductlifecycleofaproduct.BrassingtonandPettit(2003)classifymodificationsintothreedistincttypes:quality,design,andperformance.Qualitymodificationsrelatetotheproduct'sdependabilityanddurability;performancemodificationsrelatetotheeffectiveness,convenience,andsafetyofproducts(e.g.,washingmachinesthatuselessheatandwater);anddesignmodificationsaltertheaestheticandsensoryappealoftheproduct(suchasitstaste,texture,sound,andappearance).Suchmodificationscanacttodifferentiateproductsinthemarketplace,e.g.,BMWcarshaveanimmediatelyrecogni

zablestyle.Anumberofissueshavetobeconsideredbeforedecidingwhetherornottokeeptheproduct,changeit,oreliminateit(seeproductdeletion);forexample,whatisthecustomerappeal?Theproductmayhavelostitsdistinctivenessbecauseoftheintroductionofnewproductsorimprovementsofitsmainrivals.Byreformulatingtheproduct,itmaybepossibletoregainitscompetitiveedge.Thecompanyneedstoassess.

NewproductdevelopmentWithnewproductdevelopmentthatcompanygoestoproductmodification.Inbusinessandengineering,newproductdevelopment(NPD)isthetermusedtodescribethecompleteprocessofbringinganewproductorservicetomarket.Therearetwoparallel


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pathsinvolvedintheNPDprocess:oneinvolvestheideageneration,productdesignanddetailengineering;theotherinvolvesmarketresearchandmarketinganalysis.Companiestypicallyseenewproductdevelopmentasthefirststageingeneratingandcommercializingnewproductswithintheoverallstrategicprocessofproductlifecyclemanagementusedtomaintainorgrowtheirmarketshare.Theprocess1.IdeaGenerationisoftencalledthe"fuzzyfrontend"oftheNPDprocessIdeasfornewproductscanbeobtainedfrombasicresearchusingaSWOTanalysis(Strengths,Weaknesses,Opportunities&Threats),Marketandconsumertrends,company'sR&Ddepartment,competitors,focusgroups,employees,salespeople,corporatespies,tradeshows,orEthnographicdiscoverymethods(searchingforuserpatternsandhabits)mayalsobeusedtogetaninsightintonewproductlinesorproductfeatures.IdeaGenerationorBrainstormingofnewproduct,service,orstoreconceptsideagenerationtechniquescanbeginwhenyouhavedoneyourOPPORTUNITYANALYSIStosupportyourideasintheIdeaScreeningPhase(showninthenextdevelopmentstep).

2.IdeaScreeningTheobjectistoeliminateunsoundconceptspriortodevotingresourcestothem.Thescreenersshouldaskseveralquestions:Willthecustomerinthetargeketbenefitfromtheproduct?Whatisthesizeandgrowthforecastsofthemarke

tsegment/targetmarket?Whatisthecurrentorexpectedcompetitivepressurefortheproductidea?Whataretheindustrysalesandmarkettrendstheproductideaisbasedon?Isittechnicallyfeasibletomanufacturetheproduct?Willtheproductbeprofitablewhenmanufacturedanddeliveredtothecustomeratthetargetprice?Dr.JYOTHIRMGYIDEGREECOLLEGE,ADONI

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3.ConceptDevelopmentandTestingDevelopthemarketingandengineeringdetailsInvestigateintellectualpropertyissuesandsearchpatentdatabasesWhoisthetargetmarketandwhoisthedecisionmakerinthepurchasingprocess?Whatproductfeaturesmusttheproductincorporate?Whatbenefitswilltheproductprovide?Howwillconsumersreacttotheproduct?Howwilltheproductbeproducedmostcosteffectively?Provefeasibilitythroughvirtualcomputeraidedrendering,andrapidprototypingWhatwillitcosttoproduceit?TestingtheConceptbyaskingasampleofprospectivecustomerswhattheythinkoftheidea.UsuallyviaChoiceModelling.

4.BusinessAnalysisEstimatelikelysellingpricebaseduponcompetitionandcustomerfeedbackEstimatesalesvolumebaseduponsizeofmarketandsuchtoolsastheFourtWoodlockequationEstimateprofitabilityandbreak-evenpoint

5.BetaTestingandMarketTestingProduceaphysicalprototypeormock-upTesttheproduct(anditspackaging)intypicalusagesituationsConductfocusgroupcustomerinterviewsorintroduceattradeshowmakeadjustmentswherenecessaryProduceaninitialrunoftheproductandsellitinatestmarketareatodeterminecustomeracceptance

6.TechnicalImplementationNewprograminitiationFinalizeQualitymanagementsystemDr.JYOTHIRMGYIDEGREECOLLEGE,ADONI

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ResourceestimationRequirementpublicationPublishtechnicalcommunicationssuchasdatasheetsEngineeringoperationsplanningDepartmentschedulingSuppliercollaborationLogisticsplanResourceplanpublicationProgramreviewandmonitoringContingencies-what-ifplanning7.Commercialization(oftenconsideredpost-NPD)LaunchtheproductProduceandplaceadvertisementsandotherpromotionsFillthedistributionpipelinewithproductCriticalpathanalysisismostusefulatthisstage

8.NewProductPricingImpactofnewproductontheentireproductportfolioValueAnalysis(internal&external)CompetitionandalternativecompetitivetechnologiesDifferingvaluesegments(price,value,andneed)ProductCosts(fixed&variable)Forecastofunitvolumes,revenue,andprofitThesestepsmaybeiteratedasneeded.Somestepsmaybeeliminated.ToreducethetimethattheNPDprocesstakes,manycompaniesarecompletingseveralstepsatthesametime(referredtoasconcurrentengineeringortimetomarket).Mostindustryleadersseenewproductdevelopmentasaproactiveprocesswhereresourcesareallocatedtoidentifymarketchangesandseizeuponnewproductopportunitiesbeforetheyoccur(incontrasttoareactivestrategyinwhichnothingisdoneuntilproblemsoccurorthecompetitorintroducesaninnovation).Manyindustryleadersseenewproductdevelopmentasan

ongoingprocess(referredtoascontinuousdevelopment)inwhichtheentireorganizationisalwayslookingforopportunities.


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Forthemoreinnovativeproductsindicatedonthediagramabove,greatamountsofuncertaintyandchangemayexist,whichmakesitdifficultorimpossibletoplanthecompleteprojectbeforestartingit.Inthiscase,amoreflexibleapproachmaybeadvisable.BecausetheNPDprocesstypicallyrequiresbothengineeringandmarketingexpertise,crossfunctionalteamsareacommonwayoforganizingprojects.Theteamisresponsibleforallaspectsoftheproject,frominitialideagenerationtofinalcommercialization,andtheyusuallyreporttoseniormanagement(oftentoavicepresidentorProgramManager).Inthoseindustrieswhereproductsaretechnicallycomplex,developmentresearchistypicallyexpensive,andproductlifecyclesarerelativelyshort,strategicalliancesamongseveralorganizationshelpstospreadthecosts,provideaccesstoawiderskillset,andspeedstheoverallprocess.Also,noticethatbecauseengineeringandmarketingexpertiseareusuallybothcriticaltotheprocess,choosinganappropriateblendofthetwoisimportant.Observe(forexample,bylookingattheSeealsoorReferencessectionsbelow)thatthisarticleisslantedmoretowardthemarketingside.Formoreofanengineeringslant,seetheUlrichandEppinger,Ullmanreferencesbelow.Peoplerespondtonewproductsindifferentways.TheadoptionofanewtechnologycanbeanalyzedusingavarietyofdiffusiontheoriessuchastheDiffusionofinnovationstheory.Anewproductpricingprocessisimportanttoreduceriskandincreaseconfidenceinthepricingandmarketingdecisions

tobemade.BernsteinandMaciasdescribeanintegratedprocessthatbreaksdownthecomplextaskofnewproductpricingintomanageableelements.

MarketsforProductModificationAnimportantproductstrategyforfirmsinmaturemarketsisvalue-addingmodificationstoexistingproducts.Marketinginformationthatrevealsconsumers'preferences,buyinghabits,andlifestyleiscriticalfortheidentificationofsuchproductmodifications.Weconsidertwotypesofvalue-addingmodificationsthatareoftenfacilitatedbymarketinginformation:retention-typemodificationsthatincreasetheattractivenessofaproducttoafirm'sloyalcustomers,andconquesting-typemodificationsthatallowafirmtoincreasetheappealofitsproducttoacompetitor'sloyalcustomers.Weexaminetwoaspectsofthemarketsforproductmodificationinformation:(1)themannerinwhichretentionandconques

tingmodificationsaffectcompetitionbetweendownstreamfirms,and(2)theoptimalDr.JYOTHIRMGYIDEGREECOLLEGE,ADONI

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sellingandpricingpoliciesforavendorwhomarketsproductmodificationinformation.Weconsiderseveralaspectsofthevendor'scontractingproblem,includinghowavendorshouldpackageandtargettheinformationtothedownstreamfirmsandwhetherthevendorshouldlimitthetypeofinformationthatissold.Thisresearchalsoexamineswhenavendorcangainbyofferingexclusivitytoafirm.Weaddresstheseissuesinamodelconsistingofaninformationvendorfacingtwodownstreamfirmsthatselldifferentiatedproducts.Themodelanalyzeshowinformationcontractingisaffectedbydifferentiationinthedownstreammarketandthequalityoftheinformation(intermsofhow"impactful"theresultingmodificationsare).Weanalyzetwopossiblescenarios.Inthefirst,theinformationfacilitatesmodificationsthatincreasetheappealofproductstotheloyalcustomersofonlyoneofthetwodownstreamfirms(i.e.,onesidedinformation).Inthesecondscenario,theinformationfacilitatesmodificationsthatareattractivetotheloyalconsumersofboththefirms(i.e.,two-sidedinformation).Theeffectofmodificationsondownstreamcompetitiondependsonwhethertheyareoftheretentionortheconquestingtype.Aretention-typemodificationincreasesthe"effective"differentiationbetweenthefirmsandsoftenspricecompetition.Conquestingmodifications,however,havebenefitsaswellasassociatedcosts.Aconquestingmodificationoflowimpactreducesthe"effective"differentiationbetweencompetingproductsandleadstoincreasedpricecompetition.However,w

henconquestingmodificationsareofsufficientlyhighimpact,theyalsohavethebenefitofhelpingafirmtocapturethecustomersofthecompetitor.Thevendor'sstrategyforone-sidedinformationalwaysinvolvessellingtoonefirm,thefirmforwhichthemodificationsareoftheretentiontype.Whentheidentifiedmodificationsareoflowimpact,thisresultisexpectedbecauseconquestingmodificationsareprofit-reducingfordownstreamfirms.However,evenwhentheinformationidentifieshigh-impactmodifications(andpositiveprofitsaregeneratedbysellingtheinformationasconquestinginformation),thevendorisstrictlybetteroffbytargetinghisinformationtothefirmforwhichthemodificationistheretentiontype.Withtwo-sidedinformation,theequilibriumstrategyisforthevendortosellthecompletepacketofinformation(informationonbothretentionandconquestingmodifications)tobothdownstreamfirms.However,inequilibrium,bothfirmsonlyimplementretention-typemodifications.Theinformatio

nonconquestingmodificationsis"passive"inthesensethatitisneverusedbydownstreamfirms.Yetthevendormakesstrictlygreaterprofitbyincludingitinthepacket.ThisobtainsbecausethepricechargedforDr.JYOTHIRMGYIDEGREECOLLEGE,ADONI

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informationdependscriticallyonthesituationanindividualfirmencountersbynotbuyingtheinformation.Thepresenceofconquestinginformationinthepacketputsanonbuyerinaworsesituation,andthisunderlinesthe"passivepowerofinformation."Thevendorgainsbyincludingtheconquestinginformationeventhoughitisnotusedinequilibrium.MODIFICATIONSANDIMPROVEMENTSTOEXISTINGPRODUCTSWecanreviewyourcurrentproductandupdateitmorecurrenttechnologies!Wecandesigninareplacementforthoseobsoleteparts!

ProductenhancementsNextgenerationdesignCostreductionTrainingTestProceduresMaintenanceProceduresTestFixtureDesignHardware/SoftwareTradeoffsRedesignofcurrentproductsDesignmodificationsforreplacementofobsoletepartsFirmwareUpdatesGuitareffectpedalsmodificationsGuitaramplifiermodifications


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CHAPTER-2STUDYDESIGN


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IMPORTANCEOFSTUDY:InthefirstyearsofthenewMillennium,weseealotofexamplesofProductModificationWhatarethedrivingforcescausingcompaniestoseeknewandweirdwaystochangetheproductsotheycankeepsellingmore?

1.Theintensityofcompetition-theCompetitiveEnvironment,-inaglobalizedcommunityofbusinessesallinterlinked,itbecomeseasierandeasiertocopyotherpeople'sproducts,especiallyconsumerelectronics-soonceyouhavelaunchedanewproduct-thereisaveryshorttimebeforesomeoneelsewillmakeaknock-offcopy,orevenmakeaslightimprovementtocaptureyourcustomers

2.Thecontinuedadvancesintechnology,theTechnologicalEnvironment.Technologymakesiteasierandeasiertocopyotherproducts.Also,advancedintechnologymakeitmorepossibletohavetofeaturestoaddontoaproductthatisseveralmonthsold

3.TheEconomicEnvironment-theneedforcompaniestomakemoremoneysellingaproduct(maybebecausethecyclewastooshort)-

4.TheSocial/CulturalEnvironment-aftertheproducthasbeenusedbytheea

rlyadopters,itmightthepossiblethatothercustomergroupshaveslightlydifferentuses,andthiscanbeaccommodatediftheproductpackagingorfeaturesarealteredslightlytomakeitmoreappealingtootherdemographics.


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OBJECTIVESOFSTUDYToknowtherequiredmodificationsinMaggiNoodlesToKnowthecustomersperceptiononpresentfeaturesofMaggiNoodlesToredesignthemarketingstrategiesifany

FocusedMarketingObjectivesTheproductlifecyclebeginsbyfindingoutwhatcustomerswantandwhatcompetitorsaredoing.TheInternetcanbeusedtosolicitfeedbackonproductsandservices,andrunconcepttestingsurveys,promotenewproducts,andobtaincustomerfeedbacktoimpactproductmodificationsorserviceimprovements.

Forthemarketingcycle,theInternetcanbeusedtoenabledirectnofilteredmessagestoandfromthepublic,businesses,consultants,andthepress.Muchliketraditionaladvertising,itcanachievemarketingobjectivessuchasimprovingcorporateandproductbrandimageawareness.

Whenitcomestosales,theInternetcanaccomplishagreatdealbeforetransactingafinalsale.Thousandsofprospectscanbeefficientlymovedthroughtheearlyphasesofthesalescycle-fromawareness,tointerest,todesire.Literaturerequestscaneasilybefulfilledandatlowcost,includingreprintsofposit

ivepressquotesandarticles.

Insalessupport,efficiencyisobviouswhenansweringcustomerqueriesandwheresomecustomerservicelevelscanbefullyautomated.


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ResearchmethodologyResearchTheresearchisaprocessbywhichdataiscollectedfromvarioussourcesthenprocessedintereptedandanalysedusingstatisticaltoolstodriveusefulinformation.Heshoulddesigntheproductinsuchawaythattheproductwillsatisfycustomers.Heshouldknowthebehaviorofcustomerstowardsaproduct,tobesuccessfulinmarketing.behavioristhementalsetinthemindsofcustomersregardingtheproducts.TheMarketershouldalsopositiontheproductinthemindsofcustomerssothatitshouldbeviewedfavorableonebycustomers.Positioningistheactofdesigningthecompanysofferproducts/servicessothatthetargetmarketunderstandsandappreciateswhatthecompanystandsforinrelationtoitscompetitors.Thecompanyspositioningmustberooteditinanunderstandingofhowthetargetmarketdefinesvalueandmakeschoiceamongtheavailablealternatives.Asanumberofcompetitorsareincreasinginthehaircaremarket,thetaskofmarketingofconsumergoodsisbecomingmore&moredifficult.MeasuringcustomerattitudeandmoldingitinthecompanysfavourisaveryessentialinthiscontextanalysisofcustomerattitudetowardsofNESTLE.Forthemarketingcycle,theInternetcanbeusedtoenabledirectnonfilteredmessagestoandfromthepublic,businesses,consultants,andthepress.Muchliketraditionaladvertising,itcanachievemarketingobjectivessuchasimprovingcorporateandproduct

brandimageawareness.


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DatacollectionMethodPrimarydata:PersonalinterviewswillbeconductedwiththemaindealerofNESTLEinAdonicity,followedbyaspecificquestionnaireadministrationdesignedtoobtaindatafromrespondentsorcustomerstounderstandbehaviortowardstheproducts.

Secondarydata:ThesecondaryinformationneededfortheprojectwasobtainedfrombooksandInternet.

DataAnalysis:Analysismeans,resolvingintosimpleelements,Analysisofdataisnotingbutprocessingofrawdataintoaformofusefulinformationtouser.Afterthecollectionofdataitisveryimportanttoclassifythedataintosimpletermsothatonecanunderstandtheinformationinthestudy.Alongwithanalysisitisalsoimportanttointerpretthedata.Interpretationmeansexplanationofmeaning.Itinvolvesdrawinginferencefromtheanalysisofthedata.Analysis&interpretationarecloselyinterlinked.Analysis&interpretationhelpstheresearchertogivesuggestionforprobleminhand&alsoconcludethework.

ResearchMethodology:Aquestionnaireispreparedconsideringtheobjectiveoftheresearch.Thequestionnaireisself-administeredandconsistsofmultiplechoices,openendedanddichotomousquestions.Directlycontactingtherespondentsandexplainingthemabouttheresearchpurposeandalsoclarifyingtherespondentsandexplainingifanyinthequestionnairecollectinformation.Afterclarificationtherespondentswereaskedtoanswerallthequestions,whicharerelevanttohim/her.


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TotalpopulationAdoniisamajorcommercialtowninourstateItislocatedatabout100KMfromcitykurnoolthepopulationofcityisaround3lakhsitisindustriallywelldevelopedcityandisthefamousforcottonandtextileMills.Itisalsoaprominenttradecenter.Itisalsowellknowncenterforeducationinourstatewithfacilitiesforallareasofeducation.

Samplingunit:ThecustomersintendtobeadministeredwiththequestionnairewereprospectsandexistingcustomerswhouseNESTLEproductsinAdoni.Sampliod:Non-probability(Convenience)Samplingsize:69respondentsSamplingtechnique:convenienceStatisticaltechnique:PercentageanalysisSamplingarea:Adonitown.


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Scopeofthestudy

ThestudyisgoingtobeconductedintheAdonicity.ItisintendedtoprovideinformationaboutsalespromotiontowardsNESTLE.

AdoniisamajorcommercialtowninourstateItislocatedatabout100KMfromcitykurnoolthepopulationofcityisaround3.5to4lakhsitisindustriallywelldevelopedcityandisthefamousforcottonandtextileMills.Itisalsoaprominenttradecenter.Itisalsowellknowncenterforeducationinourstatewithfacilitiesforallareasofeducation.

Thecityprojectsabalanceddevelopment.PeopleofallincomelevelsandfromallsortsofculturalbackgroundarefoundintheTown.SostudyisconductedinandaroundAdonitown.


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LIMITATIONSThepresentstudyisconfinedtoaminimalsamplesizeandmaynotreflecttheopinionorresponseoftheentirepopulationingeneral.TheresultsofourstudyareentirelyconfinedtotheresponsesoftheAdoniTownconsumersandmightdeviateintermsofactualpopulationasawhole.Recommendationsgivenafterthestudyareentirelydependentonthesurveyandthesecondaryanalysisdoneinthereport.Inattempttomakethisprojectauthenticandreliable,everypossibleaspectofthetopicwaskeptinmind.Nevertheless,despiteoffactconstraintswereatplayduringtheformulationofthisproject.Themainlimitationsareasfollows:Duetolimitationoftimeonlyfewpeoplewereselectedforthestudy.SotheSampleofconsumerswasnotenoughtogeneralizethefindingsofthestudy.Themainsourceofdataforthestudywasprimarydatawiththehelpofselfadministeredquestionnaires.Hence,thechancesofunbiasedinformationareless.Peoplewerehesitanttodisclosethetruefacts.Thechanceofbiasedresponsecantbeeliminatedthoughallnecessarystepsweretakentoavoidthesame


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CHAPTER3COMPANYPROFILE


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HistoryThecompanydatesto1867,whentwoseparateSwissenterpriseswerefoundedthatwouldlaterformthecoreofNestl.InthesucceedingdecadesthetwocompetingenterprisesaggressivelyexpandedtheirbusinessesthroughoutEuropeandtheUnitedStates.InAugust1867CharlesAandGeorgePage,twobrothersfromLeeCounty,Illinois,USAestablishedtheAnglo-SwissCondensedMilkCompanyinCham.TheirfirstBritishoperationwasopenedatChippenham,Wiltshirein1873.InSeptember1867,inVevey,HenriNestldevelopedamilk-basedbabyfoodandsoonbeganmarketingit.Thefollowingyear,1868,sawDanielPeterbeginsevenyearsofworkperfectinghisinvention,themilkchocolatemanufacturingprocess;M.Nestl'swasthecrucialcooperationM.Peterneededtosolvetheproblemofremovingallthewaterfromthemilkaddedtohischocolateandthuspreventingtheproductfromdevelopingmildew.HenriNestlretiredin1875,butthecompany,undernewownership,retainedhisnameasFarineLacteHenriNestl.In1877Anglo-Swissaddedmilk-basedbabyfoodstoitsproducts,andinthefollowingyeartheNestlCompanyaddedcondensedmilk,sothatthefirmsbecamedirectandfiercerivals.In1905thecompaniesmergedtobecometheNestlandAnglo-SwissCondensedMilkCompany,retainingthatnameuntil1947,whenthenameNestlAlimentanaSAwastakenasaresultoftheacquisitionofFabriquedeProduitsMaggiSA(founded1884)anditsholdingcompany,AlimentanaSAofKempttal,Switzerland.Maggiwasamaj

ormanufacturerofsoupmixesandrelatedfoodstuffs.Thecompanys

currentnamewasadoptedin1977.Bytheearly1900s,thecompanywasoperatingfactoriesintheUnitedStates,UnitedKingdom,GermanyandSpain.WorldWarIcreatednewdemandfordairyproductsintheformofgovernmentcontracts;bytheendofthewar,Nestl'sproductionhadmorethandoubled.Afterthewar,governmentcontractsdriedupandconsumersswitchedbacktofreshmilk.However,Nestl'smanagementrespondedquickly,streamliningoperationsandreducingdebt.The1920ssawNestl'sfirstexpansionintonewproducts,withchocolatethecompany'ssecondmostimportantactivity.


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NestlfelttheeffectsofWorldWarIIimmediately.ProfitsdroppedfromUS$20millionin1938toUS$6millionin1939.Factorieswereestablishedindevelopingcountries,particularlyLatinAmerica.Ironically,thewarhelpedwiththeintroductionofthecompany'snewestproduct,Nescafe("Nestl'sCoffee"),whichwasastapledrinkoftheUSmilitary.Nestl'sproductionandsalesroseinthewartimeeconomy.

TheendofWorldWarIIwasthebeginningofadynamicphaseforNestl.Growthacceleratedandcompanieswereacquired.In1947camethemergerwithMaggiseasoningsandsoups.Crosse&Blackwellfollowedin1950,asdidFindus(1963),Libby's(1971)andStouffer's(1973).DiversificationcamewithashareholdinginLOrealin1974.In1977,NestlmadeitssecondventureoutsidethefoodindustrybyacquiringAlconLaboratoriesInc.

In1984,Nestl'simprovedbottomlineallowedthecompanytolaunchanewroundofacquisitions,notablyAmericanfoodgiantCarnationandtheBritishconfectionerycompanyRowntreeMackintoshin1988,whichbroughttheWillyWonkaBrandtoNestl.

HistoricaldevelopmentItwasatthispointintimethatNestldecidedtochange

theformulationofMagginoodles.Thepurposewasnotonlytoinfusefreshlifeintothebrand,butalsotosavemoneythroughthisnewformulation.Thecompanyu

sednewnoodle-processingtechnology,sothatitcouldair-dryinsteadofoil-frythenoodles.Thetastemakersmanufacturingprocesswasalsoaltered.Asaresultoftheaboveinitiatives,costsreportedlycamedownby12-14%.


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Tocookthenewproduct,consumershadtoaddtwocupsofwaterinsteadofone-and-a-halfcups.Thetasteofthenoodleswassignificantlydifferentfromwhatitusedtobe.ThecustomerbacklashthatfollowedthelaunchofthenewnoodlestookNestlbysurprise.Withvolumesdecliningandcustomercomplaintsincreasing,thecompanybegantoworkonplanstorelauncholdMaggitowinbackcustomers.Inaddition,in1998,NestlbeganworkingoutastrategytoregainMaggispositioninthesoupsegment.TocountertheKnorrthreat,thecompanyrelaunchedMaggisoupsundertheMaggiRichbrandinMay1998.Thesoupswerenotonlythickerinconsistencythanthoseproducedearlier,thepricingwasalsokeptcompetitiveandthepackagingwasmademuchmoreattractive.However,KnorrtookNestlbysurprisebylaunchingone-servingsoupsachetspricedaslowasRs4.HLLtoolaunchedtwo-servingsachetsofKissansouppricedatRs7.AsMaggididnothaveanyofferingsinthisprice-range,itlostahugeportionofitsmarketsharetoKnorr.TherelaunchpromptedmarketobserverstocompareNestlsmovewithUSsoftdrinksmajorCoca-ColasNewCokefiasco.However,thecompanydisagreed,Itsahard-5edstrategythatmixesnostalgiawiththeconsumersvoicedpreferencefortheproductithasbeenbredandroughtupon.ThereintroductionisNestlsacknowledgementoftheloyaltyoftheIndianmotherandthechildtotheoriginalproduct.ByMay1999,NestlsdecisiontobringbacktheoldMaggiseemedtohavepaidoff.Twoonthsaftertherelaunch,themonthlyaveragesalesofMagginoodlesnthenorth

ernregionrose50%incomparisontothepreviousyear.InJuly1999,Maggithebrand,waspromotedasthebiggestbrandinNestlsportfolioofbrandsinIndia,ove

rtakingbrandssuchasNestumandCerelac.NestlbelievedthatMaggihadimmensepotentialasitwasaveryflexiblebrandunderwhichregionalvariantscouldbeintroducedtomeetvariousmarketneeds.Companysourcesclaimedthatwithreasonablepricepointsandinnovativeproducts,Maggicouldemergeasatopbrandandamajorgrowthdriverforthecompany.Tofurthersupportthebrand,Nestlcarriedoutvariouspromotionalactivitiesaswell.TheseincludedtheAugust1999Fun-DoozcampaignandJungleJackpotcampaigns.6Asaresultoftheaboveinitiatives,Nestlclaimedtohavecorneredan81%marketshareofthe20,000tonsnoodlesmarketbytheendof1999.NestlsourcesclaimedthatMagginoodlesoutsoldthecompetitionfourtimesoverandthatmorethanfourMagginoodlecakeswereconsumedeverysecondinthecountry.


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ManagementTheexecutiveboard,adistinctentityfromtheboardofdirectors,inclu

PeterBrabeck,ChairmanoftheBoardofDirectors,NestlS.A.PaulBulcke,ChiefExecutiveOfficer,NestlS.A.WernerBauer,ExecutiveVicePresident,NestlS.A.,ChiefTechnologyOfficer,HeadofInnovation,Technology,Research&Development

FrizvanDijk,ExecutiveVicePresident,NestlS.A.Asia,Oceania,Africa,MiddleEast

LuisCantarell,ExecutiveVicePresident,NestlS.A.UnitedStatesofAmerica,Canada,LatinAmerica,Caribbean

JosLopez,ExecutiveVicePresident,NestlS.A.Operations,GLOBEJohnJ.Harris,

ExecutiveVicePresident,NestlS.A.Chairman&CEOofNestlWaters

NanduNandkishore,ExecutiveVicePresident,NestlS.A.CEOofNestlNutritionJamesSingh,ExecutiveVicePresident,NestlS.A.FinanceandControl,Legal,IP,Tax,GlobalNestlBusinessServices

LaurentFreixe,ExecutiveVicePresident,NestlS.A.EuropePetraeaHeynike,ExecutiveVicePresident,NestlS.A.StrategicBusinessUnits,Marketing,SalesandNespresso

MarcCaira,DeputyExecutiveVicePresident,NestlS.A.HeadofNestlProfessionalStrategicBusinessDivision


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Jean-MarcDuvoisin,DeputyExecutiveVicePresidentNestlS.A.HeadofHumanResourcesandCentreAdministration

DavidP.Frick,SeniorVicePresidentandexofficioMemberoftheExecutiveBoard

Accordingtoa2006globalsurveyofonlineconsumersbytheReputationInstitute,Nestlhasareputationscoreof70.4onascaleof1100.

ProductmixNestleIndialimited(NIL)isasubsidiaryofNestleS.A.ofSwitzerland.Withsevenfactoriesandalargenumberofco-packers,NestleIndiaisavibrantCompanythatprovidesconsumersinIndiawithproductsofglobalstandardsandiscommittedtolong-termsustainablegrowthandshareholdersatisfaction.Mission:TheCompanycontinuouslyfocusesitseffortstobetterunderstandthechanginglifestylesofIndiaandanticipateconsumerneedsinordertoprovideTaste,Nutrit

ion,HealthandWellnessthroughitsproductofferings.AssociatedBrands:MilkProducts&NutritionNestleEverydayDairyWhitenerNestleMilkmaidNestleFresh&HealthyNaturalDahiNestleMilkNestleEverydayGheeNestleJeeraRaitaNestleMilkmaidFruitYoghurtNestleSlimMilkPreparingDishes&CookingAidsChocolates&ConfectionariesNestleMilkyBarNestleKitKatNestleMunchNestleMilkChocolateNestleMaggiNoodles


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ProductDetailsProductTypeTypePrimaryIngredientProcessingTypeFeatureCertificationPackagingWeight(kg)ShelfLifePlaceofOriginBrandNameModelNumberNoodlesSomenwheatflourRefinedLow-Fat,Low-Salt,NormalFDA,HACCP,ISO,QSBag,Box,SinglePackage5012monthsNewDelhiJvefooMaggiNoodles

Organizationstructureofemployees:Nestle,theworld'slargestfoodmaker,islookingtoinvestinnoodleproductioninIndia.TheSwissfoodgiant,whoownstheMaggibrand,confirmedtojust-foodthatithassignedamemorandumofunderstandingwithKarnataka'sstategovernmenttoinvestINR3.5bninitslocalproductionfacilities.WhethertheinvestmentwouldgotowardsincreasingcapacityattheexistingNanjangudfacilityortowardsacompletelynewfacilityisyettobefinalized.NestlehasalsoreportedlybeenintalkswithgovernmentofficialsinasecondIndiansite,HimchalPradesh.Thecompanyhasaskedfor43acresoflandinHimchalPradeshtobuildafoodprocessingplantinthestate,accordingtoTheHinduBusinessLine.AspokespersonforNestleIndiasaiddiscussionsoverthepossibleinvestmentinHimchalPradeshhadnotbeenconcluded.Dr.JYOTHIRMGYIDEGREECOLLEGE,ADONI

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NestlecurrentlyhassevenplantsinIndiaandemploysover5,000workers.

MarketAnalysis:MaggihasfacedlotofhurdlesinitsjourneyinIndia.ThebasicproblemthebrandfacedistheIndianPsyche.InitiallyNestletriedtopositiontheNoodlesintheplatformofconveniencetargetingtheworkingwomen.However,thesalesofMaggiwasnotpickingupdespiteofheavyMediaAdvertising.ToovercomethisNILconductedaresearch.NIL'spromotionspositionedthenoodlesasa'convenienceproduct',formothers&asa'funproductforchildren.Thenoodles'tagline,'FasttoCookGoodtoEat'wasalsoinkeepingwiththispositioning.Theypromotedtheproductfurtherbydistributingfreesamples.Givinggiftsonreturnofemptypackets,etc.EffectiveTaglineCommunication

HurdlesFacedSalessawadeclinein1990s:FormulationchangedfromFriedbasetoAirdriedbse.Competitionincreasedinnoodlesegment:TopRamen-IndoNissin(Japaneseco.)Newproductlaunchedinmarketbutfailed:DalAttaNoodlesSambharflavour.Maggilaunchedsomenewproductsundertheirbrand,buttheseproductswerenotsuccessful.Ketchups,Soups,Tastemakers,etc

MarketPenetrationStrategies


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Promotionalcampaignsinschool.Advertisingstrategies:-focusingonkids.Newproductinnovationaccordingtotheneedofconsumers:

Veg.AttaNoodles.DalAttaNoodles.CuppaMania.

Availabilityindifferentpackages:50gms.100gms.200gms.familypacks(400gms.).

Conductingregularmarketresearch

CurrentScenarioofMaggiLeadingBrandinIndiaaswellasWorld.CurrentSales:Approx.90000boxes,Rs.4,79,49,000inMumbai10,00,000boxes55cr.inIndiaReasonablecompetitivepricing.Creativeinteractionblogsforcustomers

SuggestivePromotionalStrategiesFocusoncreatingdistinctiveimage,basedontwinbenefitsofINSTANTandHEALTHYthemphasisonhealthconsciousandruralmarket.Conductpromotionalcampaignsatschoolsinsmalltownswithpopulationmorethan10,000.Dr.JYOTHIRMGYIDEGREECOLLEGE,ADONI

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Strengthenthedistributionchanneloftheruralareaswithin100KMofallthemetros.Launchnewadvertisementcampaign(T.V.,Radioandprintmediacommercials)withthebrandambassador.ConductMarketResearchtofindoutthemarketpenetrationoftheproductintheruralareascovered.

EarningsIn2009,consolidatedsaleswereCHF107.6billionandnetprofitwasCHF10.43billion.ResearchanddevelopmentinvestmentwasCHF2.02billion.[1]

Salesbyactivitybreakdown:27%fromdrinks,26%fromdairyandfoodproducts,18%fromready-prepareddishesandready-cookeddishes,12%fromchocolate,11%frompetproducts,6%frompharmaceuticalproductsand2%frombabymilks.

Salesbygeographicareabreakdown:32%fromEurope,31%fromAmericas(26%fromUS),16%fromAsia,21%fromrestoftheworld.

JointventuresNestlholds26.4%ofthesharesofL'Oral,theworld'slargestcompanyincosmeticsandbeauty.TheLaboratoiresInneovisajointventureinnutritionalcosmeticsbetweenNestlandL'Oral,andGaldermaajointventureindermatologywithL'Oral.OthersincludeCerealPartnersWorldwidewithGeneralMills,BeveragePartnersWorldwidewithCocaCola,andDairyPartnersAmericaswithFonterra.

EthicalandsustainableeffortsIn2000NestlandotherchocolatecompaniesformedtheWorldCocoaFoundation.TheWCFwassetupspecificallytodealwithissuesfacingcocoafarmers(diseasehadwipedoutmuchofthecocoacropinBrazil)includingineffectivefarmingtechniquesandpoorenvironmentalmanagement.TheWCFfocusesonboostingfarmeri

ncome,encouragingsustainablefarmingtechniquesandenvironmentalandsocialprogrammes.[11]


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NestlisafoundingparticipantintheInternationalCocoaInitiative(ICI),anindependentfoundationsetupin2002anddedicatedtoendingchildandforcedlabourincocoagrowing,andeliminatingchildtraffickingandabusivelabourpractices.[12]InOctober2009NestlannounceditsCocoaPlan.ThecompanywillinvestCHF110millioninthePlanovertenyearstoachieveasustainablecocoasupply.Onthe23rdOctober2009NestlandCNRA,theIvorianNationalCentreforPlantScienceResearch,signedaframeagreementforcooperationinplantscienceandpropagation,withatargetofproducing1millionhigh-quality,disease-resistantcocoaplantletsayearby2012.Theaimistoreplaceold,lessproductivetreeswithhealthiernewones.

KeyDates:1843:HenriNestlbeginsbottlinglemonadeandwater.1969:Nestlacquires30percentofVittel,launchingitsinvolvementinthebottledwatermarket.1974:GermanbottledwaterproducerBlaueQuellenisacquired.1987:MajoritycontrolofVittelisacquired.1992:TheCompanyacquiresPerrierandformsNestlSourcesInternational(NSI).1996:NSIchangesitsnametoPerrierVittel.1998:TheCompanylaunchesitsfirstmulti-sitebrand,PureLife.2000:ThePureLifebrandisexpandedintoSouthAmerica;theAquarelbrandislaunched.2002:PerrierVittelchangesitsnametoNestlWaters.2004:AjointventureisformedwithSouthKore

a'sPulmuoneGroup.CompanyPerspectives:


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QualityistheessentialingredientinallofourbrandsandthereasonwhymillionsofpeoplechooseNestlproductseveryday.OurconsumershavecometotrustinNestl'scommitmenttoexcellenceandturntoNestlbrandstomaintainnutritionalbalanceinafastpacedworld.Overall,thelate1920swereprofitable,progressivetimes.Inadditiontoaddingsomenewproductsofitsownincludingmaltedmilk,apowderedbeveragecalledMilo,andEledon,apowderedbuttermilkforbabieswithdigestivedisordersthecompanyboughtinterestsinseveralmanufacturingfirms.Amongthemwerebutterandcheesecompanies,aswellasCarlottaA.G.,aBerlin-basedchocolatebusinessthatbeganmanufacturingNestl,Peter,Cailler,andKohlerchocolate.In1928,underthedirectionofChairmanLouisDapples,NestlfinallymergedwithPeter,Cailler,Kohler,ChocolatsSuissesS.A.theresultingcompanyofa1911mergerbetweentheSwissGeneralChocolateCompanyandCailler,anotherleadingfirmadding13chocolateplantsinEurope,SouthAmerica,andAustraliatothegrowingfirm.HealthclaimscontroversyNestlhavefacedcriticismovertheiradvertisingoftheMaggibrand,adheringtomarketingregulationsindevelopedcountries,butmakingmisleadingclaimsindevelopingcountrieswhereregulationpermitsit.Forexample,inOctober2008NestlmistakenlyairedanadvertmeantforBangladeshiTVonBritishTV.Theadvertmadefalseclaimsthatthenoodleswould"helptobuildstrongmusclesandbone".TheBritishAdvertisingStandardsAuthoritysaidthattheadvertdidnotabidebythenewEUconsume

rprotectionlegislation,bywhichadvertisershavetoprovideproofofhealthclaims.


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ControversyandcriticismOneofthemostprominentcontroversiesinvolvingNestlconcernsthepromotionoftheuseofinfantformulatomothersacrosstheworldincludingdevelopingcountries,anissuethatattractedsignificantattentionin1977asaresultoftheNestlboycottwhichisstillongoing.[16]Nestlecontinuestodrawcriticismthatitisinviolationofa1981WorldHealthOrganizationcode[17]

thatregulatestheadvertisingofbreastmilkformulas.Nestl's

policy,[18]however,statesthatbreastmilkisthebestfoodforinfants;however,womenwhocannotorchoosenottobreastfeedforwhateverreasondoneedanalternativetoensurethattheirbabiesaregettingthenutritiontheyneed.Twoandahalfdecadessinceitslaunch,the"2-minuteMagginoodles"stilldominatestheinstantnoodlesmarketinIndia.ThisNestlbrand'srunawaysuccesscanberegardedquiteafeat,especiallyinacountrywheremostpackagedproductsstruggletomaketheirpresencefelt.TakingacuefromMaggi'ssuccess,anumberofmanufactureslaunchedtheirowninstantnoodlesintheearly90'sbutfailedtocreateadentinitsmarketshare.Eventoday,Maggienjoysamarketshareofover70%,despitethepresenceofanumberofotherbrands.Thisdecadeolddomina

nce,however,issettobeshakenup.Apartfromacoupleofnewlaunchesbyindependentinstantfoodmanufacturers,thelasttwoyearshavealsoseentheentryoforganisedretailersandFMCGmajorsinthismarket.WhileHindustanUnileverandGSKrecentlyextendedtheirKnorrandHorlicksbrandintothenoodlescategory,ITCisspeculatedtolaunchitsowninstantnoodlesundertheSunfeastbrand.Amidstthisjostleformarketshare,thelureofbettermarginshavepushedorganisedretailerstogoasfarasreducingshelfspaceforFMCGbrandstomakespacefortheirownprivatelabels.Sowhat'sbehindthissuddenrushofinterestinsuchanageoldproduct?"TheselaunchesrepresentasmartmovebymanufacturerstocapitaliseonthefundamentalshiftsinsocioeconomicpatternsoftheIndiansociety,ratherthana'me-too'strategy.Themanufacturersare


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tryingtotapthepotential,thischangehastooffer,"saysAnkitBansal,consultantwithDatamonitor,ConsumerMarketsteam.AccordingtoDatamonitorestimates,theinstantnoodlemarketinIndiaisworthoverRs1,300-croreandisgrowingataphenomenalrateofover17-20%peryear."Mainreasonsresponsibleforthisgrowthincludeariseinthenumberofworkingprofessionalslivingawayfromparents,lackoftime,andpremiumplacedbyconsumersonconvenientfoodoptions",saysBansal.OnekeyreasonforinstantnoodlesalwaysbeingahitwiththeIndianconsumersistheease&speedwithwhichitcanbecooked.Somemanufactureshavefurtherenhancedtheconveniencequotientbycomingupwithinnovativepackagingthatdoesawaywiththeneedforacookingstoveandutensils.Noodlessoldinacupcanbeeatenrightawayafteraddinghotwater;perfectforon-the-goconsumption.Apartfromthetraditionalpositioningforkids,manufacturersarenowtargetingtheadultconsumersaswellbyleveragingontheconvenienceaspectwhichhasbecomemoreimportantgiventhechangingemploymentpatterns.Giventheincreasingcompetition,manufacturersareconstantlyinnovatingwiththeirproductofferingstostayabreastofchangingconsumerpsychographics.EventhemarketleaderNestlhasadapteditselfwithtimetomaintainitsrobustsalesgrowth.ThebestexampleisthelaunchofwholewheatAttaMaggi,avarianttoaverthealthconsciousmothersfromswitchingbrandsorevengivingupthepurchaseofnoodlesaltogetherinfavourofhealthierfoodchoicesfortheirkids.P

layingonthistrend,therehavebeennumerousattemptsbymarketerstorideonthe'healthandwellness'wavethathasswepttheurbanIndianconsumers.FoodlesfromHorlicksisastepaheadofotherbrandsinmarket,andclaimstohaveamulti-grainformulationfortifiedwithvitalnutrients.ItremainstobeseenhoweverifthelikesofFoodlescangrabasizableshareofthemarketbybankingonthe'healthfood'image,inacategorywhichsofarhasonlybeenanindulgentsnack.BansalisabitscepticalofFoodles'potentialforsuccess.Hestates,"Foodleswilldowellonlyaslongasconsumersacceptandlikeitstaste,especiallythatofthemulti-grainvariety.Thoughhealthieralternativeshavebeendoingwell,theflagshipcurry-flavoredMaidanoodlesarestillthelargestsellingvariantbyahugemargin."


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Thereiscertainlyalotofscopefornewandexoticflavoursthough,thatcanappealtodifferentethnicitiesinIndia."Newflavoursarelikelytoseegreateradoptionamongworkingclassconsumerswhoareopentoexperimentingwithnewcuisinesandhavealsoadoptednoodlesasaregularmealitem.Moreover,tastedifferentiationistheonlypracticaloptionforindependentplayerswhoareunabletocompeteeitheronmarketingprowessorsellingprice,"saysBansal.GrowthopportunitiesfornoodlesarenotrestrictedtourbanareasaloneasseveralFMCGcompanieshaveincreasedtheirreachintheruralmarketsaswell.Nestlalreadytargetsrural/semi-urbanmarketswithalowpricediron-fortifiedvariantofMagginoodles.Thus,tosumup,thecompetitioninthisspaceissettosizzlewhileprovidingdiverseconsumersegmentswithaneverincreasingsetofoptionstosuittheiruniquepreferences.

Awards&Recognition

COMPANYAHIVEMENTSNestlPurinaPetCareCompanyanditsparentcompany,NestlS.A.,arefrequentlyrecognizedbylocal,national,andinternationalorganizationsforourpositiveworkenvironment,focusonourassociates,andcareeropportunities.Hereisasamplingofsomeoftheawardsthatweareproudtohavereceived:

2010MalcolmBaldrigeNationalQualityAwardRecipient-Thisprestigiousawardrecognizesorganizationsthatshowconsistentexcellenceintheareasofleadership;customerandmarketfocus;strategicplanning;processmanagement;measurement;analysisandknowledgemanagement;workforcefocus;andresults.

ByreceivingtheBaldrigeAward,NestlPurinaPetCareCompanybecomes:Dr.JYOTHIRMGYIDEGREECOLLEGE,ADONI

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thefirstconsumerpackagedgoodscompanyevertoreceivetheAward;andthefirstpetfoodmanufacturertoreceivetheAward.

Inaddition,outof83applicants,NestlPurinaPetCareCompanyisoneofonlysevencompaniestoreceivetheawardthisyear.Andpriortothe2010group,only80organizationshadreceivedBaldrigeAwards.

BestPlacetoWorkforRecentGrads-NestlPurinawasnamedbyExperience.comandYahoo!HotJobsasoneoftheBestPlacestoWorkforRecentGradsin2010.Thisawardwasgivenbasedonhiringandretentionpractices,benefits,trainingprogramsandgrowthopportunities.NestlPurinawasrecognizedforthemanyperksweoffertoouremployees,suchastuitionreimbursement,greenincentivesandfitnessandwellnessprograms,aswellasforthedevelopmentalopportunitiesavailableinourorganization.

2010BestPlacetoWorkinSt.Louis-NestlPurinawasnamedastheBestPlacetoWorkinSt.Louisintheextralargecategory.Wewererecognizedforourextensiveassociatetrainingopportunities,aswellasournumerousamenitiesinclud

ingouron-siteStoreandFitnessCenter,subsidizeddaycare,andourabilitytobringpetstowork.Thisrecognitionwasgiventousbasedsolelyontheinputofourassociates,whichdemonstratestheamazingculturewehaveatNestlPurina.


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RoleModelforTheStarkloffDisabilityInstitute-NestlPurinaisproudtohavebeennamedaRoleModelcompanybytheStarkloffDisabilityInstitute.TheStarkloffInstituteisanon-profitorganizationdedicatedtopromotingfullparticipationofpeoplewithdisabilitiesinsociety.Co-foundedbyMaxandColleenStarkloff,theStarkloffDisabilityInstituteiscommittedtochangingattitudestoencourageamoreinclusivesociety.NestlPurinaproudlysupportstheInstituteandit'smission.

MinorityEngineerTop50Employer-In2010,NestlPurinawasnamedasaReaders'ChoiceTop50EmployerbyMinorityEngineerMagazine.Companieswerechosenbythereaders,whonominatedthembasedonlikelihoodofworkingatthatcompanyandwhetherthecompanyprovidesafriendlyenvironmentformembersofminoritygroups.

Top100EmployersoftheClassof2010-InJanuary2010,NestlPurinawasnamedasoneoftheTop100EmployersoftheClassof2010byTheBlackCollegian.Thisawardwasgivenbasedonemployersprojectedentry-levelhiresandthemajorstheseemployersarerecruiting.


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BestPlacetoWork-In2009,NestlPurinawashonoredasthebestplacetoworkinthegiantcategoryinSt.LouisbytheSt.LouisBusinessJournal.Ourcompany'suniqueculture,whichencouragesemployeestobringtheirdogstowork,wasoneofmanycharacteristicsofNestlPurinathathelpedusbecomeoneofthebestplacestoworkinSt.Louis.

BestPlacestoWorkinSt.Louis-In2008,NestlPurinawashonoredasoneoftheBestPlacestoWorkinSt.LouisbytheSt.LouisBusinessJournalbasedonthecompany'suniqueculturewhichencouragesemployeestobringtheirdogstowork.Inaddition,associatesenjoyanon-sitefitnesscenter,companystore,medicalcenter,anddaycareprogrammingforchildren.

50BestPlacestoWork-InJanuary2009,NestlPurinawasnamedasoneofSt.LouisMagazine's50bestplacestowork.Ouruniqueculture,aswellasmanyotherperksNestlPurinaofferstoassociates,helpedustobefeaturedinSt.LouisMagazineandrecognizedasoneofthebestplacestoworkinSt.Louis.


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HeroesofthePlanetAward-In2008,NestlPurinawasnamedafinalistfortheSt.LouisBusinessJournal's"HeroesofthePlanetAward"fortheirSustainableOperations.

AAIMConnectionMagazine-InAugust2008,NestlPurina'spositiveworkenvironmentanduniqueculturewhereassociatesarewelcometobringtheirpetstoworkwerehighlightedinAAIM'sConnectionMagazine.AccordingtoAAIM,"Bringing'man'sbestfriend'toworkisn'ttheonlyperkavailabletoemployees.Addthesetothelistofwork/lifebenefits:flextime,businesscasualdress,on-sitefitnesscenter,acompanystorewithNestlproductsatdiscountedprices,shippingandmailingcenter,acreditunion,mothers'lounge,cafeteriaandanon-sitedaycare."

BestPlacestoLaunchaCareer-NestlUSAwasrecognizedbyBusinessWeekamongtheirlistofBestPlacestoLaunchaCareer.

FortuneMagazine'sMostAdmired-In2008and2009,Nestlwasranked#1intheconsumerfoodproductsindustryinFortuneMagazine'sannualsurveyofAmerica'sMostAdmiredCompanies.


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2008SPARCAward-In2008,NestlPurinareceivedthetophonorinthepetcarecategoryfromSupplierPerformanceAwardsbyRetailCategory(SPARC).Thisawardisvotedonbyourretailers,andNestlPurinahasreceivedthehighesthonorfromSPARCthreetimesinthepastthreeyears.

SupermarketNewsCategoryExcellenceAward-NestlPurinaalsoreceivedthepetcaregoldmedalfromtheSupermarketNewsCategoryExcellenceAwardsin2008.NestlPurinawashonoredbySupermarketNewsforsharingourbestpractices,assortmentofqualityproducts,andpromotionalsupportgiventogrocerystores.

RCGA'sTop50-In2008,NestlPurinawasagainvotedamongtheTop50BusinessesShapingtheFutureofSt.LouisbytheSt.LouisRCGA.ThisawardispresentedtocompaniesbasedontheirsignificantdedicationtotheSt.Louisbusinesscommunityaswellasthepositivecontributiontheymaketoenhancethelocalarea.


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NestlInnovationAwards-NotonlyisNestlPurinarecognizedforoureffortsexternally,wearealsorecognizedinternallyattheNestlmarketingsummit.InAprilof2008,theNestlInnovationAwardswereheld,andNestlPurinareceivedasilverinnovationawardforthedevelopmentanddesignofBenefulPreparedMeals,aswellasabronzeinnovationawardforPurinaVeterinaryDietsFortiFlora.

OutstandingCorporateCitizenshipAward-In2008,NestlPurinadonatedseveraltonsofdogandcatfoodtoassistinhurricanereliefefforts.NestlPurinahasalsohelpedwithreliefeffortsfornaturaldisasterinthepast,bydonatingover33tonsofdogandcatfoodafterHurricaneKatrina.WearebeingrecognizedbytheLouisianaHumaneSocietyasanoutstandingcorporatecitizenbecauseofourassistance.

Barron'sMostRespected-In2009,NestlwasrecognizedbyBarron'sMagazineasbeingoneofthemostrespectedcompaniesintheworld.


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CHAPTER4&5

DATAANALYSISANDINTERPRETATION


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Q1)whichbrandthatcomesfirstinyourmindwhenyouthinkaboutnoodlesindustry?TABLE-1A)maggiB)hillocksfoodlesc)topramanD)othersPARTICULARSMaggiHorlicksfoodlesTopramanothersTotal

FREQUENCY6900069

sPERCENTAGE100%0%0%0%100%

454035302520151050MaggiHorlicksfoodlesToprawmanothers

Datainterpretation:Fromtheabovetableweconcludethat100%peoplerememberwhentheywillthinkaboutnoodlesindustry


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2)Doyouawareofmaggi?

TABLE-2PARTICULARSYesNoTotalGRAPH-2FEREQUENCY69069PERCENTAGE00100%

80100%706050403020100Yes0%0No69

Datainterpretation:Fromtheabovetable100%oftherespondentsawareaboutmagginoodles


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3)Ifyeshowdoyouknowaboutthatproduct?

TABLE-3PARTICULARSElectronicmediaMagazinesPrintmediaOtherstotalGRAPH-3FREQUENCY591317069PERCENTAGE56%19%25%0%100%

7056%6050403020100elecronicmediamagazinesprintmediaothers5925%19%13170%

DataInterpretation:Fromtheabovetableweconcludethat56%oftherespondentsknowaboutmaggithroughelectronicmedia,19%oftherespondentsknowthroughmagazines,25%oftherespondentsknowthroughprintmedia.


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4)Whydoyouprefermagginoodles?

TABLE-4PARTICULARSTASTEQUALITYPRICEAVALIABILITYTotalGRAPH-450454035302520151050tastequality158%5priceavaliability6%4521%65%

FREQUENCY45155469

PERCENTAGE65%21%8%6%

Datainterpretation:Fromtheabovetableweconcludethat65%ofrespondentsbecauseoftaste,21%oftherespondentsbecauseofquality,8%oftherespondentsbecauseofprice,6%oftherespondentsbecauseofavailabilitypreferthemaggi


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Q5)Doyoulikethetasteofmaggi?

TABLE-5PARTICULARSYesNoTotalGRAPH-580100%70605040693020100YES0%0NO

FEREQUENCY69069

PERCENTAGE100%0%100%

Datainterpretation:Fromtheabovetableweconcludethat100%oftherespondentsarelikethetasteofmaggi


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6)Doyouwantanychangeinmaggiaboutavailablesizeofpackage?

TABLE-6PARTICULARSYesNoTotalGRAPH-67085%605040302015%10100YESNO59

FEREQUENCY591069


Datainterpretation:Fromtheabovetableweconcludethat85%respondentsrequiredanychangesinpackageofmaggiand15%oftherespondentsnotrequiredthechangeinpackageofmaggi


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Q8)Areyousatisfiedwiththeavailablepricesofmaggi(Rs5,Rs10,Rs15,Rs20)?

TABLE-8PARTICULARSYesNoTotalGRAPH-880100%70605040693020100YES0%0NO

FREQUENCY69069


Datainterpretation:Fromtheabovetableweconcludethat100%oftherespondentsaresatisfiedaboutpriceofmagginoodles.


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Q9)Doyourequiredanydecreaseinpriceofmaggi?TABLE-8PARTICULARSYesNoTotalGRAPH-87085%605040302015%10100YESNO59

FREQUENCY591069


Datainterpretation:Fromtheabovetableweconcludethat85%oftherespondentsarerequireddecreaseinthepriceofmaggiand15%oftherespondentsarenotrequiredanydecraese


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Q10)Doyouwantanycolorchangesinmaggi?TABLE-10PARTICULARSYesNoTotalGRAPH-107085%605040302015%10100YESNO59

FREQUENCY105969


Datainterpretation:Fromtheabovetableweconcludethat15%respondentsrequiredchangeincolourand85%oftherespondentsnotrequiredanychangeincolourofmagginoodles


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Q11)Howdoyoufeelaboutinformationgivenonthemaggipackage?TABLE-4PARTICULARSUsefullNotusefullVeryusefullNotconsiderableTotalGRAPH-4454035302520151050usefullnotusefull5veryusefullnotconsiderable2083928%56%

FREQUENCY39205569

PERCENTAGE56%28%8%8%100%

Datainterpretation:Fromtheabovetableweconclude56%respondentsaresaysthattheinformationgivenonthepackagecoverisusefulland28%saysthatnotusefulland8%saysthatveryusefulland8%saysthatnotconsiderable


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Q12)Areyousatisfiedwiththeflavor,color,taste,ofmasalagivenformaggi?TABLE-12PARTICULARSYesNoTotalGRAPH-580100%70605040693020100YES0%0NO

FEREQUENCY69069

PERCENTAGE100%%13%100%

Datainterpretation:Fromtheabovetableweconclude100%oftherespondentsaresatisfiedwithcolour,flavourandmasalaofmagginoodles


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Q13)Howdoyouratethequalityofmaggi?TABLE-13PARTICULARSGoodVerygoodAveragepoorTotalGRAPH-13454035302520151050goodverygoodaveragepoor20100%28%3915%57%

FREQUENCY203910069


Datainterpretation:Fromtheabovetableweconclude28%respondentsareratedgoodaboutqualityofmagginoodlesand57%ratedverygood,15%ratedaverage.


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Q14)Doyourequiredanypromotionalactivitiesaboutmaggi?TABLE-14PARTICULARSYesNoTotalGRAPH-147085%605040302015%10100YESNO59

FEREQUENCY591069


Datainterpretation:Fromtheabovetableweconcludethat85%ofthepeoplerequiredpromotionalactivitiesand15%respondentsnotrequiredaboutmagginoodles


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Q15)Overallaboutyouratethemaggi?TABLE-15PARTICULARSGoodVerygoodAveragepoorTotalGRAPH-133543%302529%20151050goodverygoodaveragepoor3020190%28%

FREQUENCY302019069


Datainterpretation:Fromtheabovetable43%oftherespondentsratedgood,29%verygood,28%averageaboutmagginoodles.


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CHAPTER-6

CHAPTER6

SUMMARYFINDINGS&

SUGGESSTIONS


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CHAPTER-6

SUMMARY1.Heretherespondentssaythatthemagibrandiscamesfristinourmindifwechoosetoeat.2.69membersaresaysthatwearetheawareofmagi.3.56%oftherespondentsknowaboutmaggithroughelectronicmedia.4.Thereasonforchoosethemagiistaste.5Herethecustomerswanttochangethecolorofmaggi.6.Thecustomerswanttheextraflavorsofinmagi.7.Theprintmediasourceofincomeisless.8.Thereisnochangeintasteinmagithantheprevioustaste.9.Thecustomersexpectthedecreaseofprice.10.Thepromotionalactivitiesinmaggiaregood.11.Somecustomerswantchangeinthetasteofmaggimasala.


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FINDINGS1.100%oftherespondentssaythatwhentheywillthinkaboutnoodlesindustryfirsttheywillthinkaboutmagginoodles.2100%oftherespondentsawareaboutmagginoodles.3.56%oftherespondentsknowaboutmaggithroughelectronicmedia4.65%ofrespondentslikethetasteofmaggi5.85%oftherespondentsrequiredchangesinavailablepackagesaccordingtoprices6.69%membersaresatisfiedthepriceofmagi.7.59%areexpecttodecreaseofprice.8.Hereistheresatisfactioninmagimasala.9.Hereisagoodsatisfactionofproductofmaggi.10.Thepromotionalactivitiesofmagiaregood.


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SUGGESTIONS

1)Increasetheadvertisementsinprintmedia2)Customersareexpectingpricedecreasedostrategicallychangethepriceaccordingtopackage3)Customersrequirechangeintaste,sochangeingredientsfortaste

4)Customersexpectingdifferentflavorsinmaggi,sointroducedifferentflavors.

5)Customersrequiredcolourofmaggi,sointroducedifferentcoloursinmaggi


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BIBLIOGRAPHY

BIBLIOGRAPHYBooksreferred

MarketingManagementFundamentalsofMarketing

::

PhilipKottlerWilliamStanon

Websiteswww.Google.comwww.Wikipedia.com


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QUESTIONNAIRE

QUESTIONNAIREName:Age:Sex:Male/FemaleContactno.:Signature:

Q1)whichbrandthatcomesfirstinyourmindwhenyouthinkaboutnoodlesindustry?B)maggiB)horlicksfoodlesc)toprawmanD)others

2)Doyouawareofmaggi?A)YesB)No

3)Ifyeshowdoyouknowaboutthatproduct?

A)ElectronicmediaB)MagazinesC)PrintmediaD)Others4)Whydoyouchoosemagginoodles?OTasteOQualityOPriceOAvailabilityQ5)Doyoulikethetasteofmaggi?OYesONo

Q6)Doyouwantanychangeinmaggiavailablesizeofpackage?OYesONo


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Q7)Ifyeswhatchangesisrequired---------------------------?

Q8)Areyousatisfiedwiththeavailablepricesofmaggi(Rs5,Rs10,Rs15,Rs20)?OYesONo

Q9)Doyourequiredanydecreaseinpriceofmaggi?OYesONoQ10)Doyouanycolorchangesinmaggi?

OIfyeswhichtypeofcolorsyoupreferONoQ11)Howdoyoufeelaboutinformationgivenonthemaggipackage?a)Usefullb)Notusefullc)Veryusefulld)Notconsiderable

Q12)Areyousatisfiedwiththeflavor,color,taste,ofmasalagivenformaggi?A)Yes---B)Ifnowhattypeofimprovementsrequiredsuggest--------------------------

Q13)Howdoyouratethequalityofmaggi?A)GoodB)verygoodC)averageD)poor

Q14)Doyourequiredanypromotionalactivitiesaboutmaggi?A)IfYeswhattype

ofpromotionalactiviesrequired------------------------------------------------B)No

Q15)Overallaboutyouratethemaggi?a)Verygoodb)Goodc)AverageD)poor

Q16)Anysuggestions------------------------------------------------------------------


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QUESTIONNAIRE


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