MARKETING STRATEGY OF MAGGI : A CASE STUDY

MARKETING STRATEGIES OF MAGGI A CASE STUDY

PROJECT REPORT ON MARKETING STRATEGIES OF MAGGI: A CASE STUDY SUBMITTED TO DEPARTMENT OF COMMERCE OSMANIA UNIVERSITY COLLEGE FOR WOMEN KOTI, HYDERABAD

IN PARTIAL FULFILLMENT FOR THE AWARD OF BACHELOR’S DEGREE IN COMMERCE

SUBMITTEED BY: FAZEELATH UNNISA B.COM. (HONOURS) H.T.NO. 2014-1801

PROJECT SUPERVISOR ASST.PROF.G. SARITA FACULTY MEMBER DEPARTMENT OF COMMERCE OUCW, KOTI, HYDERABAD

TITLE PAGE NAME OF THE TOPIC : MARKETING STRATEGIES OF MAGGI: A CASE STUDY

NAME OF THE STUDENT

: FAZEELATH UNNISA

NAME OF THE COLLEGE WOMEN

: OSMANIA UNIVERSITY COLLEGE FOR

YEAR OF STUDY

: 2013-2016

NAME OF THE COURSE

: B.C OM HONOURS

HALL TICKET NUMBER

: 2014-1801

NAME OF THE GUIDE

: ASST.PROF. G.SARITA

ACKNOWLEDGEMENT I express my sincere gratitude toASST.PROF.G. SARITHA Osmania University, koti, Hyderabad for her /his valuable guidance and constantEncouragement all through my project work

I am thankful to my friends and lecturers for their unconditional help and support I wish to place on record my sincere thanks toPROF.B. SANDHYA RANIhead Department of commerce, Osmania University College for women, koti, Hyderabad for her constant inspiration.

I take this opportunity to express my profound gratitude to the principal, OsmaniaUniversity College for women, koti, Hyderabad for providing me the Opportunity to work on the project.

Name of the student: FAZEELATH UNNISA

CERTIFICATE This is to certify that FAZEELATH UNNISAis a bonafide Student of b. com (Honours) III year OsmaniaUniversity College for women (H.T.NO2014-1801)and she has worked on the project title “MARKETING STRATEGIES OF MAGGI: A CASE STUDY” under The supervision of ‘PROF.G. SARITA’department of Commerce, Osmania university college for women, koti during the Year2013-2016

Place: Hyderabad Date:10-3-2016

Head of the department

CERTIFICATE BY THE GUIDE

This is to certify that project work titled “MARKETING STRATEGIES MAGGI: A CASE STUDY is bonafide work done by FAZEELATH UNNISA(H.T.NO. 2014-1801)of b.com (honours ) III year from Osmania university college for women koti, Hyderabad under my supervision.

Place: Hyderabad Date: 10-3-2016

Name of the guide:PROF.G SARITA

DECLARTATION

IFAZEELATHUNNISA student of b.com (honours) III year of OsmaniaUniversity Collegefor women, koti, Hyderabad. Hereby declare that the project report submitted to College for the award of “bachelor degree in commerce” is a reward of bonafide Work done by me under the guidancePROF.G. SARITADepartment of commerce, Osmania University College for women, koti .it is the original and genuine work done by me. It has not been submitted to any other university for the award of any degree or diploma.

Place: Hyderabad

Name of the student: FAZEELATH UNNISA

CONTENTS CHAPTER-1    

INTRODUCTION OBJECTIVES OF THE STUDY RESEARCH METHODOLOGY LIMITATIONS OF STUDY

CHAPTER-2  INTRODUCTION TO MARKETING STRATEGIES  MARKETING STRATEGIES OF MAGGI  ADVANTAGES AND DISADVANTAGES OF MARKETING STARTEGIES  KINDS OF MARKETING STARTEGIES  Marketing strategy-exploring value creation opportunities  Marketing strategy –company analysis details  Marketing strategy –choosing value  Marketing strategy-creating, delivering, communicating, and capturing value  Market penetration strategies

CHAPTER-3

 COMPANY PROFILE  MAGGI BRAND IN INDIA  PRODUCT LIFE CYCLE OF MAGGI  MAGGI BANNED IN INDIA  RELAUNCH IN INDIA  MARKETING STRATEGIES OF MAGGI TO RELAUNCH IN INDIA  SOCIAL MEDIA SUPPORT TOWARDS MAGGI  TWITTER RESPONSE TOWARDS MAGGI

CHAPTER-4

 DATA ANALYSIS OF THE STUDY

CHAPTER-5

 FINDINGS OF THE STUDY  SUGGESTIONS

 CONCLUSION

BIBLIOGRAPHY ANNEXURE

INTRODUCTION Marketing strategies explain how the marketing functions fits in with the overall strategy for a business Once the strategy has been identified, then the business must develop an action to turn the strategy into reality. The starting point for this plan is setting of marketing objectives. Marketing objectives are the specific targets for marketing set by the business to achieve their corporate objectives

Meaning: An organization’s strategy that combines all of its marketing goals into one comprehensive plan. A good marketing strategy should be drawn from marketing research and focus on the right product mix in order to achieve the maximum profit potential and sustain the business. The marketing strategy is a foundation of marketing plan.

Definition:The term ‘marketing strategy ‘might sound broad or vague to many, so let’s take the mystery out of it then you can understand, devise and implement your business plan.

Strategy comes from a Greek word“STRATAGIEN”, meaning to be general. Think of a strategy as an overall plan of action are called

tactics. You can have tactical plans which help you to achieve your overall marketing strategy.

“The marketing strategy is the way in which the marketing functions organizes its activities to achieve a profitable growth in sales at a marketing mix level”-Philips Kotler

OBJECTIVESOFSTUDY  To present the swot analysis of Maggi  To understand the marketing and promotional strategies adopted by nestle Maggi  To analyze the perceptions of consumers towards Maggi

SOURCES OF DATA COLLECTION Primary data The primary data used in this report includes the structured questionnaire throughwhich consumer responses are collected regarding their views towards Nestle Maggi.

Secondary data The secondary data has been collected from various websites and books. It also includes data from company and other referral sites and sources.

LIMITATIONS OF STUDY  There are many companies offering ready to eat products in the market but the study is limited only to Nestle Maggi and also further it is confined only to Maggi noodles.  The sample size is only 30 respondents so the result may not be appropriate.

INTRODUCTION TO MARKETING STRATEGIES A marketing strategy is a process or model to allow a company or organization to focus limited resources on the best opportunities to increase sales and thereby achieve a sustainable competitive advantage. A marketing strategy should be centered on the key concept that customer satisfaction is the main goal. A marketing strategy is most effective when it is an integral component of corporate strategy, defining how the organization will successfully engage customers, prospects, and competitors in the market arena. Corporate strategies, corporate missions, and corporate goals. As the customer constitutes the source of a company’s revenue, marketing strategy is closely linked with sales. A key component of marketing strategy is often to keep marketing in line with a company’s overarching mission statement. A marketing strategy can serve as the foundation of a marketing plan. A marketing plan contains a set of specific actions required to successfully implement a marketing strategy. For example: “Use a low cost product to attract consumers. Once our organization, via our low cost product, has established a relationship with consumers, our organization will sell additional, higher-margin products and services that enhance the consumer’s interaction with the low-cost product or service.” A strategy consists of a well thought out series of tactics to make a marketing plan more effective. Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill

market needs and reach marketing objectives. Plans and objectives are generally tested for measurable results. A marketing strategy often integrates an organization’s marketing goals, policies, and action sequences (tactics) into a cohesive whole. Similarly, the various strands of the strategy, which might include advertising, channel marketing, internet marketing, promotion and public relations, can be orchestrated.

Many companies cascade a strategy throughout an organization, by creating strategy tactics that then become strategy goals for the next level or group. Each one group is expected to take that strategy goal and develop a set of tactics to achieve that goal. This is why it is important to make each strategy goal measurable

ADVANTAGES AND DISADVANTAGES OF HAVING MARKETING STRATEGIES You create a marketing strategy to gain advantages in the marketplace, but you must remain aware of the disadvantages of any given marketing strategy. Your marketing choices require awareness of advantages vs. disadvantages, and as you weigh these, you must be prepared to change strategies when disadvantages become too great. Examine the areas where marketing strategies can benefit or harm your business, so that you can act quickly to adjust your marketing to benefit your company.

Objectives You may set marketing objectives such as achieving a percentage of market shares, maximizing cash flow or maintaining profitability through market expansion. As you create a marketing strategy to achieve any of these objectives, you must remain aware of one potential disadvantage: You may have chosen the wrong objective. An effective marketing strategy aimed at the wrong objective can take you in a harmful direction. For example, if you seek to maintain profitability by expanding your markets, you may find that you would be better off improving customer service to your existing markets so that you can improve your reputation.

Costs Each marketing strategy has costs you must evaluate in terms of how effectively you spend your money. An e-mail campaign may be relatively cheap, but it could waste your marketing message by getting lost in your customers’ spam filters. Magazine advertising, on the other hand, may cost more than you can afford. Direct mail can be cheaper than print ads, but your product or service may not be well-suited to this kind of campaign, so you could be wasting your money. You must constantly weigh costs vs. benefits for any marketing strategy, so that you use your marketing dollars wisely.

Branding Your marketing strategy creates an impression of your company. If the strategy for a specific product or service is ineffective, you can give your customers the impression that you are not a viable company. You must decide how much of your marketing strategy should focus on promoting your brand and now much of it should tout the specific benefits of a particular product. One way to handle this dilemma is to divide your marketing into two phases. In the first phase, focus your marketing on the product. Once it gains acceptance, tie your brand to that product. Because consumers already have a favorable impression of the product, they will be likely to transfer that favorable impression to your brand. This strategy minimizes the disadvantage of harming your brand when the public does not like a product.

Effectiveness Any marketing strategy that does not allow you to measure effectiveness puts you at a disadvantage. You can continue an ineffective marketing strategy indefinitely if you don’t have some way to measure how well it works. A marketing strategy that contains measurable objectives offers you the advantage of continuing plans that work. You can build effectiveness into your marketing strategy by expressing your objectives in terms of numbers. For example, “we will increase sales by 20 percent” is effective; “we will increase sales” is not.

DIFFERENT TYPES OF MARKETING STRATEGIES

 Marketing strategy-exploring value creation opportunities  Marketing strategy –company analysis details  Marketing strategy –choosing value  Marketing strategy-creating, delivering, communicating, and capturing value  Market penetration strategies

INTRODUCTION TO MARKETING STRATEGIES OF MAGGI Marketing strategy is a long term course of action designed to optimize allocation of the scarce resources at the disposal of a firm in delivery superior customer experience and promote the interest of stake holders

Initial Strategies of Maggi:  Maggi has faced lot of hurdles in its journey in India  The basic problem the brand faced is the Indian psyche  Initially Nestle tried to position Maggi in the platform of convenience targeting the workingwomen. However, the sales of Maggi was not picking up despite of heavy media advertising. To overcome this Nestle conducted a research. Nestle promotion positioning the Maggi product as a ‘convenience product’ for mother and as a ‘fun’ product for children. The Maggi `Tagline”, ‘Fast to Cook Good to Eat’ was also in keeping with its positioning. They promoted the product further by distributing flee samples. Giving gifts on

return of empty packets, etc. Effective Tagline Communication.

MAGGI STRATEGY The needs that the product is trying to address are very explicit. It is a tasty snack This satisfies hunger and takes very less time and efforts for preparation. Peoplefeel like eating Maggi because it satisfies hunger and tastes superb.

EARLY STRATEGY AND LAUNCH In India it was launched in 1980s by Nestle group of companies. Maggi has faced Of hurdles in its journey in India. The basic problem the brand faced was the Psyche. I.e. Indians used to be conservative about the food habits so noodles faced a lot of problem in promoting sales Initially nestle tried to position the Noodles in the platform of convenience targeting the working women. However, the sales of Maggi were not picking up despite of heavy Media Advertising. To overcome this NIL conducted a research, which revealed that it was children who liked the taste of Maggi noodles and who were the largest consumers of the product. So they came up with Maggi- 2 minute noodles with price of Rs. 2.10 with a close of 100% margin. NIL shifted its focus from working women and targeted children and their mothers through its

marketing. NIL’s promotions positioned the noodles as a ‘convenience product’, for mothers and as a ‘fun’ product for children. The noodles’ tagline, ‘Fast to CookGood to Eat’wasalso in keeping with this positioning. They promoted the product innovatively likeDistributing free samples, giving gifts on return of empty packet

MARKETING STRATEGY-EXPLORING VALUE CREATION OPPORTUNITIES Customers





Company

Competitors

Noodles industry has a wide range of customers ranging from children (