Maggi noodles was launched in India in 1984 by Nestle. It is today the highest sold noodles in India.With 60% market share (2010 report)in its bowl, Maggi Noodles continues to be an undisputed leader for almost 30 years. Back in 1980‟s, instant noodles was an entirely new category. Now, the challenge was to establish an alien product and yet find a relevant consumption benefit in the market. Maggi was therefore, positioned as snack made for children who like to experiment food and was billed as a fast to cook and good to eat snack. The Rs. 2.50 per 100gm Maggi was an instant success. “Mummy Bhook Lagee- Bas Do Minute was a rendition of this approach. It fit well with the mother‟s child caring relationship. These ads became so popular that “Bas Do Minute” instantly reminded Indian consumers of Maggi noodles. Health Factor was gaining importance. Several other brands, for example, HUL launched the Knorr Soupy noodles for a „healthy‟ afternoon snacking option. Maggi did not want to stay behind. It rolled out a new noodle with multi-grain variant called Multigrainz and aggressively advertised it as a nutritious food for kids. Apart from noodles, Maggi has sauces and soups available in various flavours. But, Maggi tops it all by being the market leader with the maximum share. Some more products in its kitty are Maggi Cuppa Mania, Maggi Masala and Maggi Magic Cubes. Maggi Noodles Maggi Noodles Marketing Strategy 1997-1999: Nestle changed the taste of Maggi noodles, but it proved to be a failure. In 1999, Maggi reintroduces the old formulation and revived sales with the punchline“Fast to Cook, Good to Eat”. 2000: Maggi noodles became the leader in instant noodles space. 2005: Marketing strategy to keep Maggi brand fresh and as a „health product‟ with its tagline – “Health Bhi -Taste Bhi” with the launch of Maggi Atta noodles. 2009- Maggi celebrates 25 years of Maggi noodles with „Me and Meri Maggi‟ campaign and the launch of Maggi Pazzta. This campign invited consumers to share their Maggi moments. As a part of this promotional drive, magi launched a website, where the consumer could upload their Maggi moments and their favourite recipes or stories hit with the company will get a chance to be featured on Maggi packets or ads. 2012 – Maggi has generally stayed away from the celebrity endorsements. In general, mother and child have been the celebrities for Maggi for the longest time. With its only exceptions, when Preity inta promoted the Rs.5 Chotu Maggi and the family packs. Recently, Amitabh Bachchan has been made the brand ambassador of Maggi. Maggi‟s “Do minute Mein Khushiyan” with Amitabh Bachchan was launched in 2012. Of late, the brand had been facing some competition from other brands in the same segment like, Top Ramen, Sunfeast Yippie, Wai Wai, etc. In addition, the brand was feeling a disconnect with the newer generation who have many choices in food indulgence. Big B in the new campaign is a story teller who narrates the stories given by the consumers. The aim is to bring back the segments of consumers who moved away from the brand since they have grown up. A powerful celebrity as a brand ambassador adds a big boost which is the need of the hour for Maggi with so many competitors around. The problem with such a heritage brand is that the communication becomes boring over a period of time. And it needs the right energy to move ahead and face the competition. 1. Submitted By:ABHISHEK SRIVASTAVA 002BEENA VENUGOPALAN 012JOTINDER SINGH 022NISHANT DHORELIYA 032 RADHA A 042SOUBHAGYA RATH 052YOGESHWAR DUTT 062 2. EXECUTIVE SUMMARYNestlé India is a subsidiary of Nestlé S.A. of Switzerland. With six factories and a largenumber of co-packers, Nestlé India is a vibrant Company that provides consumers in Indiawith products of global standards and is committed to long-term sustainable growth andshareholder satisfaction. The company is known for its brands in the Milk Products &Nutrition, Prepared Dishes & Cooking Aids, and Chocolates & Confectionery segments.Nestlé leads the value sales of noodles in India with a market share of 79.3%. A testament toNestlés domination of the sales of plain noodles is the fact that for its instant noodles brandMaggi, among all its global offices, India accounts for the highest level of volume sales forthe company.This marketing plan analyses the current marketing mix of Maggi Noodles, studies thepopularity of the two new health variants Vegetable Atta and Dal Atta Noodles and makessuggestions with regard to introducing a new brand “Cup O Maggi” in the cup noodlessegment. Various tools like surveys and secondary sources of information have been utilizedfor the purpose of this analysis. 3. TABLE OF CONTENTS2. SITUATION ANALYSIS..................................................................................................... 5 2.1 Market Summary........................................................................................................ .... 5 2.1.1 TARGET MARKETS ......................................................................................................................7 CRITICAL ISSUES AND CHALLENGES ..............3................1......................3 INDUSTRY SEGMENTATION ................. 12 2............................................2 ITC SUNFEAST PASTA ............................................................................................................ 13 2................ 14 2.....4 MARKET TRENDS ....... 143...........................................1 MAGGI 2 MINUTE NOODLES ....... 8 2............................................................................................ .................................................................................... 22 3.......................................3............................1 TOP RAMEN ...................... 10 2................................. 16 3.......5 PRODUCT OFFERING ..............................................1............ 15 3.............................4 CURRENT MAGGI NOODLES BRAND...............................2 MARKET DEMOGRAPHICS ....................................................3 COMPETITION............ 11 2..............................4..4 TARGET SEGMENTS FOR MAGGI NOODLES .................................. 13 2................2 MARKETING OBJECTIVES ............................................. 5 2.............3 MARKET NEEDS ...... 6 2............................................... 15 3................................................. ......................5 MARKET GROWTH..1 MISSION............................................................................................. MARKETING STRATEGY...1................................ 15 3.............................................................................................................................................................................. 11 2.................... 12 IDENTITY/KAPFERER‟S PRISM................................ .....6 PRODUCT DISTRIBUTION ...................... 5 2.................................................................... 11 2........1........................................................2 SWOT................................................ 6 2..............................7 KEYS TO SUCCESS............................................................ ......... 24 4..............................2 CONSUMER COST ............................ 27 4........1 CONSUMER SOLUTION .......1.............................................................1 IMPROVING THE DAL ATTA VARIANT.................................................................5.......................................... 24 4........ ........2 SALES FORECAST.........4 COMMUNICATION.......................1............................................................................................................................................................................................................................................................................................................................................................................................ 34 5.................................... 24 4........................................1 BREAKEVEN ANALYSIS OF A 100 TONNE CAPACITY PLANT OF CUP O MAGGI NOODLES .......................................1.............. ................................... 285.................................................... FINANCIALS ...... 31 5............................................................................. 31 FINAL TOTAL COST ANALYSIS ........ 24 4.. 25 4........ 33 5..............2 ANALYTICAL BREAK-EVEN ANALYSIS...........................1 MAGGI 2 MINUTE NOODLES ..............3 GRAPHICAL BREAKEVEN ANALYSIS .............3 CONVENIENCE......................................................... 26 4..........................................................1........... MARKETING MIX ........1.............................2 CUP O MAGGI...........4...................................... 22 3................ 24 4.................... 33 5.................................... 234........................................................ 31 5...........1.......................1 BREAK-EVEN ANALYSIS........................................................................................ 23 3..........................3 PACKAGING ..2 NEW PRODUCT: THE CUP-O-MAGGI ............................................................................... 23 3...............................................2 MAGGI CUP O NOODLES ............................5 MARKETING RESEARCH ..................... 23 3............5 POSITIONING OF MAGGI ............................................ .................................5........... .. But still this didn‟t work. the firm found that the children were the biggestconsumers of Maggi noodles.. fun books. 37 4. No doubt the ads of Maggi have shown a hungry kid saying “Mummy bhookhlagi hai” to which his mom replies ..the first launch of Maggi brand ofinstant foods in 1882-83.After conducting an extensive research. but bouillon cubes.. Soon after he was commissioned by the Swiss Public Welfare Society.. Over the years.. 34APPENDIX A: INDIAN INSTANT NOODLES MARKET GROWTH GRAPHS .. the working women. Julius. 1.... sauces and other flavourings... Maggi company was producing notjust powdered soups.. this brand has become synonymous with noodles..he came up with two instant pea soups & a bean soup.. the son of an Italian immigrant came up with a formula to bring addedtaste to meals in 1863. wafers etc.However in India (the largest consumer of Maggi noodles in the world!) it was launched in1980 by Nestle group of companies. Maggi clubs which workedwonders for it.. Also it had other competitor the so called home made snacks which aretill today considered healthy and hygienic. Hence to capture the market it was positioned as ahygienic home made snack. who were therefore left with very little time toprepare meals.Towards the end of the century.The histo ry of this brand traces back to the 19th century when industrial revolution inSwitzerland created factory jobs for women. Quickly a strategy was developed to capture the kids segmentwith various tools of sales promotion like pencils. Thebright red and yellow colours of the packet with the brilliant blue “2-minute Noodles”printed on it has found a place on every kitchen. Due to this growing problem Swiss Public Welfare Society asked a millernamed Julius Maggi to create a vegetable food product that would be quick to prepare andeasy to digest.. Maggi has grown as a brandand positioned itself as a “Fast to cook! Good to Eat! “food product... Maggie had merged with Nestle family in 1947. a smart move..When launched it had to face a stiff competition from the ready to eat snack segments likebiscuits. INTRODUCTIONEver since its launch in India in 1983. as it was targetedtowards the wrong target group. 36APPENDIX B: NESTLE MAGGI NOODLES FORECAST RETAIL SALES . 000 p.urban: informed(some .1. week.2. Reprinted „04.1 TARGET MARKETSPrimary target: Children (<16)Nestle plans to widen its target audience by launching new variants Vegetable and Dal attanoodles for health conscious people.1. light-rural. catering to theincreasing demand for healthy snacks.“Bas do minute!” and soon he is happily eating Maggienoodles. They made it a easy to cook snack that could be prepared in just two minutes. 2. Further the MAGGI 2-MINUTE Noodles has been renovated to provide 20% of theRDA 1 of Calcium and Protein for the core target group building on the nutrition proposition“Taste bhi health bhi”.informed). rural (recent)Occupation: Housewives.20. semiurban:some intend to buy(aware. year)User status: first time userrural. medium-semi-urbanLoyalty status: hard core and shifting loyalsBuyer-Readiness Stage: rural-some are aware. ruraldepends on the temporal aspects of theconsumer‟s life(varied usage in terms of time of time of day.The formula clicked well and Maggi became a brand name.1 Recommended Dietary Allowances for children of 7–9 years as per “Nutritive Value of Indian Foods”. published by IndianCouncil of Medical Research. butdid not. married with children. heavy users-urbanUsage rate: Heavy user-urban. working professionals.2. upwardsSocial class: Middle and upwardsFamily life cycle: Young. self-employedSex : UnisexIncome: 1. Being the pioneer in the noodles market has given it afirst mover‟s advantage over other brands. 5. The company could have easily positioned the product as a meal. Everyday user-urban. single. SITUATION ANALYSISNestlé‟s Maggie noodles is the leading brand in the instant noodles segment in India.1 Market Summary2. potential users-semi-urban. The brand has grown to an estimated Rs 200 crore & contributes toaround 10% of Nestle India‟s top line.2 MARKET DEMOGRAPHICSDemographics:Region: urban. semi-urban. Maggi has regularly come up with new flavoursand has recently launched two variantsVegetable Atta and Dal Atta noodles. enjoyinga market share of 79.a.3%.Behavioural:Occasions: Regular. month. as a study had shown that Indian mentality did not accept anything other than rice orroti as meal. 6 billion in 2003 to US$ 33. 2.In fact today.2. presents an opportunity to makers of branded products to convert consumers to branded products.Hence a convenient snack between lunch and dinner is an often exercised option. Hence the onus is on the company to make it easily available and affordableand in different sizes. In ruralareas. Urban Rural Population 2005-06 (mn household) 53 135 Population 2009-10 (mn household) 69 153 % Distribution (2005-06) 28 72 Markets (Towns) 3.masala. Growth is also likely to come from consumer upgrading in the matured product categories. catering to different categories of users like the new Maggi chota packconveniently priced at Rs 5 for 50gms. Growth will continue to be fuelled by convenience products such as noodles and ready meals with 200 million people expected to shift to processed and packaged food by .1. Opportunities inpractically all consumption categories arise in terms of "reach" and "medium ofconsumption". At 4% constant value CAGR into the forecast period.4 MARKET TRENDS The FMCG market is set to treble from US$ 11. Penetration level is only 30% for Maggi Noodles in urban areas as well as per capita consumption for the Instant noodles and pasta segment is low indicating the untapped market potential.700 Universe of Outlets (mn) 1 3. value growth for packaged food is predicted to remain healthy. fastto cook" anytime snack and is popular across different age groups.desire.4 billion in 2015.3 MARKET NEEDSThe urban Indian is used to having his dinner late from around 8:30 pm to as late as 11 pm.3 Urban profile Source:Statistical Outline of India (20052006) Burgeoning Indian population. The Indian palate is not too adventurous in terms oftrying out new flavours. particularly the middle class segments and the rural segments.Maggi is a fun and convenience brand which sits strongly in its position as a "good to eat.some intend to buy)Attitude toward product: Enthusiastic. tomato and chicken and not much experimentation is necessarily required in thenoodles market. People prefer to have it easily available and affordable.1. smaller priced packs stimulates demand.758 62. Maggi have settled at standard flavours such as curry. positivePsychographics:Lifestyle: Hard pressed for time 6. however. leading to an explosion of newopportunities. currently at US$ 556 per annum. markets. Around 45 per cent of the population in India is below 20 years of ageand the young population is set to rise further. have all causedrapid growth and change in demand patterns. such as instant noodles. sachets have proved to be extremely popular insmaller towns and villages. these individualsresort to easy-to-prepare meals. 1200 1000 800 600 Incom e (US $/annum ) 400 200 0 2003 2015 Rise in disposable income (US$/annum) Source:Euro monitor. will rise to US$ 1150 by 2015 -another demand driver.50-1. As a result. where households cannot afford to buy larger packs dueto financial constraints. Priced at Rs0. the semi processed and ready to eat packaged food segment has a size of .012 1. This is. Given the requirements for convenience and saving time.While instant noodles are still not generally consumed as main meals in India. the rural marketing efforts have pushed the demand for sachets in many consumer goods 7. Currently.An average Indian spends around 40 per cent of his income on grocery products. 8. Spurt in the industrial and services sector growth is also likely to boost the urban consumption demand. 1996 2001 2006Population (millions) 846 1.00. increased literacy and rising per capita income. thus highlighting the huge potential for expansion of this industry. Consumption pie Source: KSA Technopak Consumer Outlook 2004.087Population <25 years of age 480 546 565Urbanisation % 26 28 31 Consumer Profile Source: Statistical Outline of India (2005-2006)Rapid urbanisation. away from their parents. and who have little time to prepare their own mealsat home.2010 Manufacturers are introducing low-priced goods in smaller pack sizes. moreindividuals are bucking this trend and accepting them as an option. BRICs Report (Goldman Sachs) The BRICs report indicates that Indias per capita disposable income.Increased health consciousness and abundant production of quality soyabean alsoindicates a growing demand for soya food segment.mostly restricted to busy working adults who live independently or only with theirspouse. Only about 8-10 per cent of output is processed and consumed in packaged form. (Dal Atta Noodles refer survey share in terms of value. 2.5 78 77. Highest advertising share(72% (TV The product features have remained almost AdEx 2004-05)). growth in noodles will be among the fastest in the various packaged food products in India. It has tried to bring in innovation but has Market leader with 79.over US$ 70 billion and is growing at 15 per cent per annum. has had a robust growth of 8%. under which Maggi noodles is classified.Growth of Maggi Noodles FY 2005-2006 For the FY 2005-2006. with sales at Rs 6. noodles). 9.5 77 2000 2001 2002 2003 2004 2005 2006 Maggi Market Share in Instant Noodles Category (2000-2005) Source: Euromonitor International Packaged Food in India May 2006 It has maintained a market share of around 78% despite increasing competition. Curry Low flavours) High Low Relative Market Share 10.5 79 Market Share (%) 78. The relative performances of the Maggi variants has been presented using the BCG matrix The Boston Consulting Group‟s Growth-Share Matrix High STARS QUESTION MARKS ( MAGGI Veg Atta Noodles) (MAGGI Chicken. Maggi Market Share in Instant Noodles Category 79.1. with pouch instant noodles accounting for more than 66% of the total value sales. the growth of Maggi noodles was an impressive 15%.2 SWOTStrengths Weakness Strong brand recall and the product is Tagged as a product having no health value. . (Refer Appendix A: Indian Instant Noodle Market Growth Graphs) Current value sales of noodles in stood at slightly over Rs 9 billion.3% market failed. almost eponymous to the brand.5 MARKET GROWTHGeneral growth of the Indian Noodles sector FY 2005-2006 FICCI states that the culinary products and snack category.75 billion and profit at Rs 2 billion. consumer. constant since inception in 1983 with any Emotional relationship with the trial of innovation misfiring. Dal Atta Noodles)MarketGrowthRate CASH COW DOGS (MAGGI Masala flavour) (MAGGI Tomato. Growing by a more than robust 21% in current value and 16% in volume. FICCI Federation of Indian Chambers of Commerce and Industry has predicted an overall growth of culinary products/snack food (10%)2. Parle is threatening to offer their distribution network to international noodle brands wishing to make an entry. was the ad that brought the Top Ramen brand intolimelight when it was launched in 1991.Opportunities Threats The instant noodles segment is Competition is increasing with established projected to grow at a tremendous competitors in other segments are foraying rate with the market size doubling by into the noodles segment seeing the 2010. Foreign players like Wai Wai and Rum Upward trend of convenience food Pum have forayed into the noodles market consumption. .Market share has fallen from the 80% in A strong distribution network of the 1998-99 to 79.2 ITC SUNFEAST PASTAITC launched Indias first instant pasta snack. Tangy ChickenPackaging and Pricing: Pack Size Price Top Ramen (gm) (Rs) Packet Noodles 50 5 100 10 400 34 Cup Noodles 80 20Distributor: Marico IndustriesDistributor strength: About 130000USP: Dont be a noodle.3. case for a premium brand like Maggi. parent company Nestle. single working professionals up with new exciting instant noodle and student population offerings like cup noodles and mug noodles Rapid economic growth and rising which threatens to eat into Maggi‟s market disposable incomes make a strong share. and have made their brand presence in Huge untapped serviceable upward eastern markets while indigenous class rural base. Sunfeast Pasta Treat is not fried and does not contain maida. Top Ramen has repositioned itself on a health platform with a new baseline “Get on Top” fortifying its product with calcium and vitamins.3% in 2005-06. be a Smoodle. Sunfeast Pasta Treat in 2005. Curry Smoodles. The product as priced higher than its main rival Top Ramen.Market share FY 2005-2006: 14%Variety:a) Packet Noodles: Macho Masala. Made from highprotein Durum wheat. making ita nutritious snack. Oye Tomato. This ready to cook pasta comes with a sauce maker inside the pack. capacity of growth. Increase in the potential consumer Top ramen the prime competitor has come base i. 11. innovative flavours and its cup noodles2.e. be a Smoodle.1 TOP RAMENDont be a noodle.b) Cup Noodles: Spicy Vegetable. Funky Chicken.3. 2.3 COMPETITION2. 15/. SourCream Onion and Cheese. “Taste bhi health bhi Self Image Reflection Kid. this variant was launched in May 2006. Family oriented Independence Fun-loving 13. SourCream Onion and Cheese. which comprise ofgrocers.2. Tasty Hurried youth Relationship Culture Fast to cook and good to Maggi Noodles Family.5 PRODUCT OFFERINGMaggi Noodles comes in 4 variants: 1. “Mummy bhookh lagi”. this was the beginning of the “Taste bhi Health bhi” focus 6. TOMATO 5.The rising popularity of the “mall-culture” in the urban andsemi-urban areas also .60. MASALA: This is the original and most widely liked flavour of Maggi and hence has been brought out in 6 different packaging sizes.Variety: It is currently available in four exciting flavours: Masala. convenience stores.6 PRODUCT DISTRIBUTIONMaggi Noodles is being sold through 2. Dual Income. CHICKEN 3. supermarkets and miscellaneous channels.for Tomato and Cheese.4 CURRENT MAGGI NOODLES BRAND IDENTITY/KAPFERER‟S PRISM Physique Personality Yellow packaging. The average Indianstill prefers shopping through the traditional grocers or “kiranas” as can be inferred from thehigher distribution of 62. this variant had contributed to 11 per cent in value to the instant noodle category within 7 months of its launch. Pack Size Price MAGGI 2 Minute Noodles (gm) (Rs) Masala 50 5 100 10 200 20 400 38 600 54 800 72 Chicken 100 10 Curry 100 10 Tomato 100 10 Vegetable Atta Noodles 100 13 400 50 Vegetable Dal Atta Noodles 100 13 400 50 Variants.Pricing: priced at Rs.8%. CURRY 4. 12. eat. the maximum in any variant 2. Market share FY 2005-2006: The ready-to-eat Sunfeast Pasta Treat has clocked 6% of thebranded noodles volume in just one year. 12/.000 outlets (FY 2005-2006). VEGETABLE ATTA NOODLES: Launched in April 2005. Packaging. 2. Playful children. VEGETABLE DAL ATTA NOODLES: Continuing the healthy snacks trend.for the Masala flavour and Rs. Prices Source: Nestle India2.Packaging: Each pack is an 83 gm pack with a 15 gm sauce makerDistributor: ITC LimitedUSP: Sunfeast is made from durum wheat and is promoted as a healthy alternative to instantnoodles made from the less healthy maida (a type of wheat flour that is slightly lower inquality). Tomato and Cheese. 2005-2006 (%) Source: Denis Mason. MARKETING STRATEGY3. Continued innovation in terms of flavours and themes – from an ordinary 2 minute bite to a healthy snack.4 0.8 Convenience stores 20.2 MARKETING OBJECTIVES Increase value market share to 80% in the instant noodles market by 2007-08 from the current 79.0 62.8 Others 0.7 KEYS TO SUCCESS Maggi has had the first mover advantage with respect to the Instant noodles segment in the Indian market.0 100. To be increasingly viewed as the preferred snack of Indians. by value. 3. packaging.3%. ANSOFF‟S PRODUCT/MARKET EXPANSION GRID Existing products New products MARKET PENETRATION PRODUCT DEVELOPMENT Existing Markets ( Upgrade existing variants of (Introduce new variants of MAGGI) MAGGI) New MARKET DEVELOPMENT DIVERSIFICATION Markets (Finding new markets for (Launch totally new variants of existing variants of MAGGI) MAGGI in totally new markets) .0 Supermarkets/hypermarkets 16.0India Dried Pasta & Noodles off-trade distribution channels. 2.6 16. The objectives were arrived at based on the analysis of Ansoff‟s Grid. taste and health.0 20.2. 15. To promote Maggi noodles as a healthy ready to eat convenient food among mothers and single working professionals.1 MISSIONTo be considered as the number one snacking option of India combining the values ofconvenience. ingredients.7 CRITICAL ISSUES AND CHALLENGES To sustain its growth and maintain its position as the leader in the Instant Noodles segment: Nissin‟s Top Ramen and recently ITC‟s Sunfeast pasta have been eating into Maggi Noodles‟ market share of the Instant Noodles Market. Datamonitor 14.3. Channel 2005 2006 Traditional grocers 63. special additives based on consumer feedback. To provide line extension by introducing Cup Noodles/Mug Noodles. To upgrade the existing product features viz.reflects on the slight increase in distribution through supermarkets /hypermarkets.4 Overall 100. 655Baby Boomers: (40-59 years old) 134.137 114.585 99.560 109.728 117.839 249.999 181.986 202. With “pester power” children play a significant role in decision making and purchase choices of just about anything ranging from food items to beverages to chocolates.781 Young Adults: (15-29 years old) MiddleAged Adults: (30-59 years old) 358.754 232.940 189. baby sitters or day care help and use the larger extended family or friends to help with careand supervision of children.645 142.211 202.168 Age wise break up and forecast of the population Source: UN census data.781 100.074 103.801 261.226Teenagers: (13-19 years) 120.754 Children: (2-9 years old) 114. we can segment the market into the following age groups: 1990 1995 2000 2005 2010 2015Children: (2-9 years old) 169. Children rule Indian families consider children to precious gifts of God. parents of nursery age children are looking to send them in the bestprivate school they can afford.179 110.211 184.405 440. and parents in all income groups do all they can for their offspring. Based on this.728 162.343 316.295 277.812 85.349Pensioners: (aged 60+) 57.164 398.432 153.521 187. 2005 1) CHILDREN Children as an age group are a marketer‟s delight.643 75.781 160.583 Tweenagers: (10-14 years old) Teenagers: (13-19 years) Studying Age: (18-22 years old) 153.Rush for pre-school admissionsThroughout urban India.193MiddleAged Adults: (30-59 years old) 243. children know exactly what they want and do not experiment too much with flavour or colour.212 151.712 86.642 115.126Young Adults: (15-29 years old) 230.267 336.029 65.103 319. Euromonitor database Age wise break up of the population (2005) 86.3 INDUSTRY SEGMENTATION The taste preferences and eating habits of consumers bear a high correlation with their age.585 189. Indian parents are still not completely comfortable with paid 17.103 Agewise Breakup of Population.646 174. 16.457 184.302 114.065 358.179 Baby Boomers: (40-59 years old) Pensioners: (aged 60+) 294. As consumers.293 127. Pre-schools for toddlers in the 2-3 age group are mushroomingall over the country.164 103.918 92.495Studying Age: (18-22 years old) 80. 3.376Tweenagers: (10-14 years old) 89.583 117. as .576 294.149 270. 12% on chocolates and 10% each on soft drinks and fastfood according to a newspaper report in the “The Times of India”. Urban children in this age groupwould have some amount of pocket money with an upper limit of Rs100 per month.457 184. as well as the product features. instant noodles and breakfast cereal.88totalpopulation Children (2-9 years old) 1990-2015 Source:Euromonitor International from national statistics and UN2) TWEENAGERSThe tweenagers age group consists of children on the threshold of adolescence and as asegment are a difficult lot.999 181.521 187. Thoughallowances have gone up. parental control still exists over this market segment. DVDplayer and computer programmes.046 87.67 18. Impulse foodsrule the preference scale as far as the buying behaviour of tweenagers in India is concerned.624 95.Cricket-crazy boysCricket is the obsession and passion of boy tweenagers in India.953 93. middle-income children can be seen playing in gardens and at school.416 89.211 184.797 97.724 90. They have also mastered the art ofnagging their parents into making purchases of gadgets or products that they want. Among theareas where they make their influence felt are the purchase of such items as a newly launchedchocolate bar. Though they are not sure about their choices on an emotionalplane.37 15. Low income boys will play on the streets with makeshiftbats and stumps.82 14. This interest cuts acrossincome and socioeconomic groups.000 1990 1995 2000 2005 2010 2015Male 87. tweenagers are an importantinfluence on family decision-making in urban India.these tweenagers are more familiar with operating mobile phones.055 97.478TOTAL 169. the TV remote. whileboys from more well-to-do families go and .041 94.29 19.588 89. they are a trendy new group that is extremely savvy and self assured when it comes totaking decisions regarding consumer goods and wants.With a penchant for hi-tech and an ease with new technology far superior to their parents.897Female 82.885 91.anxious parents recognise the perceived benefits these can bring.63 17.940 189.376as % of 20. the top six expense items for tweenagers seem to be impulse foods: 17% of the totalpocket money spent on ice creams.A key role to play in decision makingWith increased awareness through television and advertising.In fact. 565 55.781 100.000 1990 1995 2000 2005 2010 2015Male 46. With theireducation demanding less time at this age. parents are generally quite happy to see their boysspending so much time on cricket.84 10. in addition to allowances for travel andentertainment. middle-income households teenagers are now given a prepaid SIM card with a certain value for the month. There isnothing subtle about the age group any more. They are completely at ease with newtechnology and are heavy users of value-added services like SMS.90 10. Theyhave a lot of say about the food that they want to consume with limited parental control.583 117.254 56.52 10. ring tone downloads andcricket score updates.266TOTAL 89. Most still depend on their parents for pocket money but are heavy usersof these services.960Female 43.137 114.04 9.682 52.22totalpopulation Tweenagers (10-14 years old) Source: Euromonitor International from national statistics and UN3) TEENAGERSOn the brink of adulthood. They are alsopredisposed towards snack items as they tend to feel hungry between traditional meals. teenagers like to emphasize and express themselves in a mannerthat catches attention.630 55.Mobile phonesThis is the mobile phone generation in India.302 114. Lifestyle concerns in urban IndiaA 2005 study of 10-16 year olds in urban India revealed a sedentary lifestyle among 72% ofthe 20.560 109.329 60.240 56.226as % of 10. they are becoming increasinglyvulnerable to media blitzkrieg. They like to hear it straight and then make theirindependent choices and judgements.672 59. 18.Hard pressed for timeTeenagers like buying . 52% of children showed a risk ofdeveloping chemical dependence.320 52. with the problem probably attributable to a scarcity ofplaygrounds and too much TV viewing. They have experimental with their food with a preference towardsinnovative offerings but form strong opinions which they carry forward in life. On the flip side.play in organised coaching camps.000 children sampled by Lifetime Wellness Rx Ltd in the cities of Allahabad in thenorth and Hyderabad in the south.Even television channels are zeroing in on this segment in recognition of this fact.098 48.71 10.571 58. Of those sampled. In many urban. which are a relatively new focal point for socialising.78 13.12 13.853 66.35 13. read and catch up with friends.728 162.462TOTAL 120. river . teenagers either find a summer job.033Female 57. or undertake activities such asa trek in the mountains. They have longer waking hours and due to this the traditionalthree meals does not suffice with the need for filling snacks. Urbanteenagers are far more socially active today and find some difficulty in balancing their schoolroutines with their personal schedules.482 78.765 83.433 74. They are expected tofuel demand for skin care products as well as health and nutrition-related goods. as well as watchingfilms and socialising with friends. music and expensive branded footwear.Rising financial freedomWith growing aspirations on the academic front and shrinking global boundaries this agegroup has an unquenchable thirst for information whether through their PCs or cell phones.495as % of 14. Thisis no longer the case.027 79.83 14.432 153.405 74.Summer jobsUntil the 1990s.212 68. This age group has taken up to snacking as a way of life as they keep missing regularmeals due to erratic schedules.781 160. 000 1990 1995 2000 2005 2010 2015Male 62.645 142.This age group is extremely conscious of their facial and physical looks. Now.246 84.12 14.293 127. Older college-going teenagers high school pupils tend tofrequent coffee bars.This population grew since 2000 but is set to stagnate in the forecast period with couplesactually postponing the child bearing decision and some even rejecting the idea of having oneat all.11totalpopulation Teenagers (13-19 years old) Source: Euromonitor International from national statistics and UN4) STUDYING AGEA rise in the number of colleges and institutions of higher learning both government ownedand privately financed has enabled a larger number of youth to graduate from their portals.With a rise in employment opportunities in the Business Process Outsourcing (BPO) sector. 19.more and more consumers in this age group are juggling jobs along with their studies for thesake of the financial freedom it gives them.017 77. Teenagers are alsoamong the regular users cinema multiplexes and entertainment zones. summer vacations were a time to relax.books.440 61. 501 40.311 44.477 .5 billion with their spending levels 20. Most purchases made by this age group are on impulse.00010.947 53.31 9. call centres and data processing firms.642 115. Of the US$30 billion spent by Indians onthemselves in 2003.489TOTAL 80. Many haveaccess to disposable incomes of Rs8.402 59. Summer jobs may cover a range ofactivities from delivering newspapers to working in a restaurant.790 174.Need for convenienceMany single working professionals have to live away from their parents due to the demand ofthe jobs.986 44.223 153. They are ready to pay a premium for qualityand convenience.This age group still does not have responsibilities of running a household. Thus. Also always being on the move they have a need for food item that can beeasily consumed and disposed of.638Female 38. fastfood restaurants.916 130.000 per month thanks to the BPO boom in India.13 9.126as % of 9. marriage or worryabout their children‟s education.026 165.rafting or rock climbing.Youngsters are part of a middle-class boom in India.000 1990 1995 2000 2005 2010 2015Male 42. Young adults grew 8% in numbers over the 1999-2004 period and is likelyto grow at approximately the same pace.000 1990 1995 2000 2005 2010 2015Male 120.528 53.923 118.812 85. young adults spent close to US$10. rising 12% each year at twice the pace of the economy‟s growth according to various tradepress publications. mobile phone companies.918 92.074 103.47 9.353 141.305 141.077 153.651 57.236Female 109.127 49. There are 16 million urbanconsumers in the 20-25 age group.240 55.Rising disposable incomesCollege graduates and students still studying are landing well-paying jobs in a host ofemerging industries that barely existed at the start of the new millennium – retail chains.843 129.64 9.49 9. This yuppies (young upwardly mobile professionals) class has a hard time preparingfood and for them convenience is major issue.932 47.179 110. this income is almost entirely spent on non-essentialitems.29totalpopulation Studying age (18-22 years old) Source: Euromonitor International from national statistics and UN5) YOUNG ADULTSYoung adults (15-29 years old) represent the largest spending segment in the country. 338Female 118.576 294. Thewomen in this segment play an important role as most of the choices of food items have topass their scrutiny before it is consumed in the household.405 440.56totalpopulation Middle-aged adults (30-59 years old) Source: Euromonitor International from national statistics and UN7) BABY BOOMERSThe concept of baby boomers may not be that relevant to India notwithstanding the impact ofand its participation in World War II.055 206.317TOTAL 243.065 358.957TOTAL 230. This generation has virtually seen it all right fromIndian Independence (1947) to .839 249.486 212.920 228.00 26.These factors make them reluctant to leave or move from their city of residence and theywould rather resign and move to another job rather than displace the family.55 27. men find themselves with children who are able to leaveschool or facing crucial board examinations.164 398.The women in this age group are ones who the primarily buy food items for the entirehousehold though their choices are shaped by the preferences of the household members. 21.00 27.343 316. Mid-life career changeIn urban India. setting up businesses such as small IT-service firms.103 319.161.03 30. among the middle class.193as % of 27.16 35.079 134.655as % of 29.000 1990 1995 2000 2005 2010 2015Male 125.217 143.ResponsibilitiesBetween the ages of 45 and 55. some out of choice and others out of necessity.109 191.89 34.223 163.06 31. Tired of their current salariedjobs.267 336. there are a significant number of men who are makingcareer switches. Some may also have wives with settled careers. Others findthemselves redundant in the new hire and fire labour environment.295 277. adventure tourism companies or leadership training consultancies.149 270. some are taking the entrepreneurial plunge. There is a trend for suchpeople to enter the BPO sector as well.120 152.83 27.300 172.13totalpopulation Young adults (1529 years old) Source: Euromonitor International from national statistics and UN6) MIDDLE-AGED ADULTSThese middle aged men have strict preferences over food and they generally stick to theirchoices. They experiment less and go for products that will enhance their social status.34 32.764 186.38 27. them are even trying to keep abreast of current happenings and learning how to use acomputer or access the Internet. Changing technology and globalisation have changedthat with unconventional income opportunities now presenting themselves to Indians. there has been a steady migration of young adults and students tothe US.the Indo-Pakistan war (1965). a number usemobile phones for their functional use but frown on the use of credit cards and buyingbranded clothing.801 261. retirement planning.310 126.02 16. With declininginterest rates. their ageing parents have had to learn to continue to liveindependently.142Female 66.Independent living on the riseFrom the 1980s onwards.43 17.202 74. this segment is somewhat cautious about its approach toconsumerist tendencies although it is adopting some of them.010 77.000 1990 1995 2000 2005 2010 2015Male 68. Therefore.490 135. automobiles.35 18. they have had to play a more active role in financial management. however. children‟s education.034 112. insuranceproducts and vacations form the bulk of their expense.349as % of 16. For example. having been born inan age of constrained resources.Health-related products.96 21. Most have chosen to settle and make their lives inthat country. well- . and were in a sense for the destitute elderly.There food preferences are shaped by their health conditions and they stick to their preferredfood items.278 89. Some of 22. Somepensioners have sought and enjoyed success in information technology-related endeavourswhilst others have put their considerable English language skills to good use in serviceindustries.882 104. in search of better opportunities.212 151. In thenew urban India.720 120.368 85.Retirement communities viewed as an optionRetirement homes were previously viewed negatively in India. government jobs were among the few acceptable job occupations forpeople from respectable households.105 98. However. If the elderly went there.646 174. Pensioners have been the hardest hit section of the population.754 232. itmeant they had no one to care for them.62 19.986 202.207TOTAL 134.09totalpopulation Baby boomers (40-59 years old) Source: Euromonitor International from national statistics and UN8) PENSIONERSIn the 1950s and 1960s. however. The age group between 4 and 14 years has largely similar tastes and is traditionally targeted by Maggi.643 75.4 TARGET SEGMENTS FOR MAGGI NOODLES3.029 65. or a family practice.728 117.109 47.11 7. For these segments innovative products also have novelty value. two-to-threegenerations will continue to live together.3.420 45. Maggi shifted focus from the lady of the house to the end consumer i.292 41.4. Studying Age: The studying age segment though not traditionally targeted specifically has been devouring Maggi 2 minute noodles.928Female 28.240TOTAL 57. These segments perceive Maggi instant noodles as a welcome change in taste from the regular Indian fare and they are fascinated by the curly shaped noodles.55 9.476 52.1 MAGGI 2 MINUTE NOODLESMaggi 2 Minute Instant Noodles is already associated with convenience and taste and iscurrently accepted as a valid filling snack between meals.2 MAGGI CUP O NOODLESMaggi Cup O Noodles is Maggi‟s answer to Nissin‟s Cup Noodles. With reduced cookingtime of ½ a .905 36.737 39.45totalpopulation Pensioners (aged 60+) Source: Euromonitor International from national statistics and UN3.4. Early buy in of this segment will help Maggi to sell in other segments in future. a trend is likely to increase in line with growth inthe numbers of India‟s elderly. Maggi will continue to leverage itsbrand equity and target the following segments for this product.585 99. The proposition of convenience of cooking as well as that of a tasty filling snack attracts this segment which due to erratic schedules keeps missing their regular meals.appointed retirement communities are mushrooming.168as % of 6. Realizing this early. certain dominant preferences emerge.712 86.286 55. children themselves ending up as the market leader of the instant noodles segment.085 31.e. It is also now an option for the middle-income and salariedclasses. andcouples in their 60s are going there of their own volition.95 8.944 33.51 7. 23. In families where there is a proprietary business.While the numbers are not yet significant. Children and Tweenagers: This is a large segment and is Maggi‟s stronghold.81 7.000 1990 1995 2000 2005 2010 2015Male 28.441 61. This segment is growing and has the potential of accepting Maggi as a mainstream food item as they see instant noodles as a natural part of Indian food culture. convenient bite. To deal with this Maggi has toposition itself as a differentiated product. the segment targeted should one which is ready to pay a premiumfor a quality convenient food. This segment has a good top of the mind recall of Maggi as a brand as the current members of this group were the targets of Maggi in the 1980‟s and they retain fond memories of Maggi. a emotional bond which can be leveraged to win them over to Maggi Cup O Noodles.Another3.2 CUP O MAGGIThe main USP of Cup O Maggi is convenience without compromising on taste.minute. Maggi Cup O Noodles beinga premium priced product. The recent launch of “Veg Atta Noodles”and “Dal Atta Noodles” with the promise of good nutritional value ventures in this area. ease of preparation and no need of separate plates Maggi Cup O Noodlespromises to appeal to anyone in need of a quick. The market is very sensitive to taste and rejects anyflavour it dislikes with Maggi having learnt it the hard way. Both these problems can be tackled bypositioning Maggi as a snack with nutritional value.5 POSITIONING OF MAGGI3. good to eat” snack as this seems to be working well.the main competitor.5. The following segment promises to be the best bet. a major threat in the current scenario.5. Nissin‟s CupNoodles is a huge hit with the consumers liking the concept of noodles served in a cup and theextra convenience of not dealing with cleaning/needing plates and . They are hard pressed for time and would pay a premium for convenience. On the other hand Maggi has to deal with thenegative perception of Maggi has of being unhealthy in an increasingly health consciousmarket.3. from eating into its market share some product innovation is required asotherwise Maggi may get stereotyped as an unexciting product. To prevent Top Ramen. Young Adults: The growing class of affluent young adults does not mind paying higher prices for quality products.Top Ramen is following a cost differentiation technique. thus the product can not begreatly differentiated with on basis of taste.1 MAGGI 2 MINUTE NOODLESMaggi 2 Minute Noodles will continue with its current positioning of convenience and as a“fast to cook. For this purpose the improved Tastemaker has been added to Cup-O-Maggi.Anytime”.O –Maggi. Dried Vegetables and Dried Chicken chunks to be made available inside the cup The new improved spicier Tastemaker also to be added to the cupThe Market Research Survey importuned us to improve the taste and provide better healthbenefits.1 CONSUMER SOLUTIONThe instant noodles segment of Maggi is the market leader in its segment. The cup noodle marketis expanding rapidly and there is a huge scope for gaining further market share by enteringthis segment which is currently dominated by Top Ramen. This is to capture the market which has a growing demand towards convenience foods.1 IMPROVING THE DAL ATTA VARIANTMaggi Dal Atta variant ranks really low on taste as suggested by the Marketing ResearchSurvey. The noodles will be available in a Plastic cup and just require hot water to be added to prepare them. anytime.1. To caterto the demands of the growing health conscious . So Cup O Maggi with added nutrition andwholesome components will position itself as a healthy and convenient food option that canbe had anywhere. For which we plan to replace the existing Tastemaker with a SpicierTastemaker to go with the traditional Spicy Indian taste. The Maggi Dal Atta variant shows a poor response.1.the lesser time required forpreparation. MARKETING MIX4. the Masala flavour is the hot favourite by a huge margin followed by MaggiVegetable Atta and Tomato flavour. Cup O Maggi is targeted towards a segment that values time and convenience aswell as is getting increasingly health conscious. 24. To challenge this threat wepropose to launch a new product to directly compete in this segment with the name Cup.2 NEW PRODUCT: THE CUP-OMAGGIMaggi is market leader in its segment but it still has no product to challenge the growingthreat posed by Cup Noodles from Top Ramen.4. 4. The existing Sambar taste doesn‟t go too well with consumers even from the southIndian market. The crux of positioning will be “Healthy Snack Anywhere.Features of Cup –O – Maggi To be made available in two flavours Masala and Chicken to cater to the overall market palate. its closest competitor.4. Available in 4flavours. As the segment ishighly price sensitive. Pack Size Current Price Revised Price MAGGI 2 Minute Noodles (gm) (Rs) (Rs) Masala 50 5 5 100 10 10 200 20 20 400 38 36 600 54 54 800 72 72 Chicken 100 10 10 Curry 100 10 10 Tomato 100 10 10 Vegetable Atta Noodles 100 13 13 400 50 50 Vegetable Dal Atta Noodles 100 13 13 400 50 50 Maggi 2 Minute Noodles Proposed Revised Prices for existing package sizesReducing the price of the 400g pack of Maggi Masala is a very aggressive move to directlyattack the competitor whose 400g variant is priced at Rs 34. Creation of a premium brand gives the company anopportunity to provide a differential pricing and service offering to the customer therebycreating a key differentiator. These variants are competitively priced.4.2 CONSUMER COSTPricing strategy for the existing variants of Maggi Noodles is based on the objective of„Maximising Market Share”. Another issue is with the multi brick packets.people nutritious veggies and chicken chunkshave also been added. Its segment is less price-sensitive so it will be premium pricedto target the higher end customers. . we plan to Increase the thickness of the plastic sheets used in the Maggi Noodles packets to give more strength to the packet and allow easy & safe opening of the pack To provide a Zip-Seal facility along with the existing sealing to allow the packets to be stored easily4.3 PACKAGINGMajor changes are required in the packaging of Maggi noodles as suggested by the MarketingResearch Survey: Maggi noodles packets to be flimsy which require to be torn apart carefully so as to not spill the contents. These extra pieces are already available with the Maggi range of soupsand the same can be used in Cup-O-Maggi also thus dispenses the need for setting up of anew processing factory specially for the manufacturing of food pieces.1. 25. The effect of the downwardrevision in price can be offset by the increase in sales volume. Once opened they cannot be stored as it is and the contents have to be transferred to another container. any price change initiates an instant price check reaction from thecompetitor. To counter the problem.Pricing strategy for the launch of Cup-O-Maggi is based on the objective of achieving“Product Quality leadership”. basically people who might prefer to go for a quickmeal instead of cooking a whole traditional Indian meal. 4.GENERAL PROMOTIONEvents and Experiences: Hold the Online Maggie Recipe Challenge.4 COMMUNICATIONPROMOTION OF CUP O MAGGIWith the introduction of Cup-o-Maggi noodles. Thus using the Competitive. we propose to move away from the „Childand Mother‟ approach of Maggi. specially in case of early work-daymornings or a „tired‟-evening quick snack (in case of professionals). wherein innovativerecipes with Maggi Noodles . The Cup noodles would be targeted at the young singleprofessionals. CUP-O-MAGGI Pack Size (gm) Price (Rs) Masala 80 20 Chicken 80 20 Cup O Maggi Proposed Pricing and PackagingProduct pricing is based on offering high value to our customers compared to most pricepoints in the market. Anytime! “SUGGESTED FUTURE CUP O MAGGI ADVERTISING CAMPAIGNWorld Cup 2007 (13th March 2007 to 28th April 2007)Families. drive-inscreens. introduce vending machines for the same at schools. Get a cricketer to endorse Maggi noodles. as also the improved versions of the Dal Atta variant. As of now.3 CONVENIENCETo keep up with the growing trends in the Noodles sector. as also the housewives.4. 27. 26.The pricing will be regularly revised according to the changing forces in the marketenvironment.In addition for Cup O Maggi we propose that: Maggi Noodles have tie-ups with Corporate Houses Depending on the initial sales of Cup O Maggi. at home. Cup-O-Maggi has beenpriced at Rs 20 for an 80g pack of Masala and Chicken flavours to directly compete againstthe competitor cup noodles which are also priced at Rs 20 for an 80g pack. Thetarget markets of „Cup-o-Maggi‟ are primarily present in the metropolitan cities as well as thetier-II cities. kids all enjoying their cricket with Cup O Maggi.Parity method. couples. the strengthof our already robust distribution network could be leveraged to introduce and sell our newproduct: „Cup-o-Maggi‟ noodles. Maggi has a well established distribution network. An associated taglinewith the Cup-o-Maggi advertisement campaign could be: „Cup-oMaggi‟: „Healthy SnackAnywhere. colleges as well as corporate houses. an intensive dealerdistributornetwork is desired. The reason being Maggi has always been the kids snack. of people ranking Top Taste Ramen smoodles better then Maggi noodles Price 0 20 40 60 80 100 120 140 29.5.3 Attributes on which Top ramen cup noodles performs better then Maggi noodles Ingredients Convenience in cooking Packaging Taste 0 20 40 60 80 100 1204.4 Maggi Packaging size preference 800 gms 600 gms 400 gms 200 gms 100 gms 50 gms 0 0. 4.2 0.Television Advertisements: Portraying hassled double income families. 4.82% Plain maggi 43.5 How do you like to consume your Maggi ? 11.createsurvey.1 BREAKEVEN ANALYSIS OF A 100 TONNE CAPACITY PLANTOF CUP O MAGGI NOODLESIn this analysis we will look for the different costs involved in the production of Maggi cupnoodles .5. Portraydifferent flavours available and focus on the health aspect of the fortified 2 minute Noodlesand the Dal and Vegetable Atta Noodles. The same isbrought out and highlighted in the charms of Preity and her bubbly and vivacious zing.2 Attributes on which Top ramen smoodles performs better then Magginoodles Ingredients Packaging No.5 MARKETING RESEARCHAn online survey was undertaken at http://www. Communicate the new improved east-to-usepackaging and the going spicy of Dal Atta Noodles.1 Maggi Noodles Performance on various attributes 1400 1200 1000 800 600 400 200 0 ed ty ty e ila h e ck ste H g Va ts ic ag va alt in gr bili rie n Pr Ta ag ie Im e nd Pa ra In A B4.com/c/39191-OSMZz4/The following sections deal with the results obtained on the basis of the 30 pointquestionnaire put forth in the survey.3 0.5 30.Celebrity endorsement: Maggi has associated itself with celebrities like Bollywood actressPriety Zinta recently.1 0.02% 6.as a base are invited.5. 5.4. withwhich she portrays the brand that is Maggi.31% With vegetables With chicken 38. 28.85% Your secret recipe 31. finding relief at theend of a tiring day with a quickly conjured up bowl of Maggi 2 Minute noodles. Winning entries are compiled into an e-cookbook which is published online.5. 4. FINANCIALS5.5.4 0. 000Pre-conditioner 1 80.MANPOWER REQUIREMENTSParticulars Nos.10.50 lacs.000Mixer ( 50 kgs capacity) 1 1. packaging cost etc.) Cost (Rs. storage facilities.50. 1. Annual expenditure at full capacity utilization will be Rs.000 .000C. Landwould cost around Rs.000/-. Variable costsA. 50.mtrs.000 TOTAL 3. mtrs. the rated production capacity is assumedto be 100 tonnes per year with 300 working days and 2 shifts per day.10.000/-.Variable Cost: this is the cost that varies with per unit of product produced e.Land &Building cost. Raw materialcost.g. Mainproduction area would occupy around 50 sq.000Building 100 2. This would necessitate installation of following machines:Item Qty.The break up of the various costs is shown below1.mtrs.00.60.90. fixed cost andvariable cost.Particulars Area (sq.would call for expenditure of Rs. plant & Machinery cost etc. SS utensils.D.)Land 200 60. Plant and MachineryMarketing is the key success determinant and the production capacity has to be finalizedaccordingly. is sufficient.2.1 BREAK-EVEN ANALYSISThe cost involved in the production can be divided into two categories viz.000 TOTAL 3. etc. Miscellaneous AssetsOther assets like furniture and fixtures. Monthly Total Monthly Salary (Rs) Salary (Rs)Machine Operators 2 4. with built-up area of 100 sq.000 8. If the plant operates at the efficiency higher thanthat indicated by the Break-Even point than the plant operates at a profit and vice-versa. Fixed CostA.1.2.whereas cost of construction could be Rs.000MachineWeighing Scale 1 10.000B.mtrs.5. They can be defined asFixed cost: This is the cost which is independent of the quantity of the product produced e.000Skilled Workers for 2 3. Keeping in mind the financial viability. Land and BuildingA plot of land of about 200 sq. working tables.000Pouch Packing and Sealing 1 1. UtilitiesPower requirement shall be 20 HP whereas per day water requirement would be 500-550liters.and then comparing it with the total sales to find out the minimum efficiency at whichthe plant should operate in order to have a neither loss nor profit relationship. This is done byfinding the Break-Even point of operation. 32. whereas packing room and storage areawould occupy balance area.00.000/. Price (Rs)Extrusion Machine 1 1.g.00. 000 4.10.000Utilities 1.000 Finished Goods Total 90.90.000Plant and Machinery 3.Colourful and attractive pouches shall have to be printed and outer packing will be corrugatedboxes.000C. protein isolates.e.2 ANALYTICAL BREAK-EVEN ANALYSISLet total production be X tones.20. Break Even .preservatives etc. Final conclusion: The plant must operate at the minimum efficiency of 71. A provision of 30% of sales value is made every year to take care of theseExpenses since the product is new thus more emphasis is given on this section.000B.000 Total 24.Other materials required are corn and rice flour.00. The graph is shown below.60.000Raw and Packing Materials 90.000PackingSemi-skilled Workers 2 2. selling commission.000*X) + (30/100)*X*1000*180= (180*X*1000)860000 = (180000-114000-54000)*XX = 71.e. Since the 80 gm pack of Maggi is available for Rs.000TOTAL FIXED COST 8.250/kg so lets say that Maggi Noodle is supplied to the market agent at Rs.000Miscellaneous Assets 50.6.000 70.00. Raw and Packing MaterialsNoodles are made with the help of many ingredients with major input being wheat flour.66% in order toreach break-even analysis point i.1.)Raw Material 100 70.Rs.14. This expensecan be reduced once the product is well established in market. hoardings and TV scroll.Publicity in local media like newspapers.000VARIABLE COSTS Per tonne of productionManpower Requirements 24. Price/Ton Value (Tonnes) (Rs. freeSampling etc.66 tonnes 34. 180/kgSo for no profit no loss equation is860000+ (1. spices.Land and Building 3. Expenses shall have to be incurred on transportation.00. 33.3 GRAPHICAL BREAK-EVEN ANALYSISThe result obtained above can be verified by plotting a graph between the total cost andQuantity of Maggi produced.000Helpers 2 1. All of them are easily available.000Packing Material 100 @ Rs.20 i.000 4.000 2. Selling ExpensesMarketing will be a key element.000Salesman 2 2. Packing materials are equally important.000/ Ton of 20. not to suffer any loss. edible oil.5. This cost can be shown asProduct Qty.FINAL TOTAL COST ANALYSISFIXED COSTS In Rs. salt.000Selling Expenses @ 30% of Total sales5.1.10. 6888.9Price for one thousand Tonnes of Maggi = 9 * 10^7 rupeesProjected value of sales = Rs.Analysis 20 Rupees (in millions) 15 10 Variable Cost Revenue 5 Cash Balance 0 0 20 40 60 80 100 120 -5 Sales (in tonnes)5.1 MAGGI INSTANT NOODLESSales by valueFor the year 2007 Projected value of instant noodles category (Refer Appendix B)= Rs.115 thousand Tonnes.88 million. 28.5 Forecast Retail Sales of Noodles by Subsector: Value 2005-2010Rs . 36.2 PROPOSED : CUP O MAGGI NOODLESSales by valueFor the year 2007 Projected value of cup noodles category (Refer Appendix B) = Rs.2.88 millionTherefore.9 thousand Tonnes.3 78. volume market share of 19.143. 143.2.8611. Projected volume sales = (Projected Value of Sales / Price per thousand Tonnes) = 0.62 million.611.6 thousand Tonnes.3 77. 28. APPENDIX B: NESTLE MAGGI NOODLES FORECASTRETAIL SALES Nestlé India Ltd Shares of Packaged Food by Subsector 20012004% retail valuersp 2001 2002 2003 2004Instant noodles 79.Therefore.For year 2007 projected category sales = 96.88 millionTherefore. 5.2 SALES FORECAST5.17 % for the year 2007 is projected.8. 35.20Price for one thousand Tonnes of Cup O Maggi = 20 /80* 10^9 rupeesProjected value of sales = Rs. 6888.1 = Rs. projected value the sales need to be 80% * Rs.1 millionThe desired market share by value = 80%Therefore.5 thousand Tonnes.For year 2007 projected category sales = 0.1millionThe suggested target market share by value = 20%Therefore.1 78. volume market share of 78. projected value the sales need to be 20% * Rs.11 = Rs. APPENDIX A: INDIAN INSTANT NOODLES MARKETGROWTH GRAPHS Indian Instant Noodles Market Retail volume growth trends Indian Instant Noodles Market Retail value growth trends 37.Sales by volumeSuggested retail price per 80 gms of Cup O Maggi = Rs. Projected volume sales = (Projected Value of Sales / Price per thousand Tonnes) = 76.95 % for the year 2007 is projected.Therefore.Sales by volumeAverage retail price per 100 gms of Maggi (across all SKUs) = Rs. 4 12.9 1. Fiji and the Philippines. With the growing popularity of Maggi.6 143. rediff.959. Maggi enjoys the reputation of being staple food in many countries. It is also called Maggi Mee in many countries. fast to cook and instant snack to satiate hunger – Maggi. No single social stratums in Malaysia can deny the temptation of Maggi and it has slowly evolved in several culinary forms.1instantnoodlesSource: Trade press (The Economic Times. Over the years.5 0. Singapore. many brands of instant noodles have emerged but Maggi still rules the roost across the globe. the taste of Maggi noodles makes it really appealing among consumers buying Maggie noodles in cups/bowl instant noodles and pouch instant noodles.8 112. Trade interviews.3 0. agencyfaqs. it will not be any exaggeration to call Maggi Mee as national dish of Malaysia. Among the most popular are Maggi Goreng. Business Standard.0 96.319. For instance in Malaysia.1 9. The brand is popular in Australia. New Zealand.8 237.3noodlesCups/bowl 84. Financial Express.300. Bangladesh.com). a brand of instant noodles manufactured by Nestle has gained huge popularity across the globe.1noodlesCups/bowl 0. Euromonitor International estimates Malaysia Maggi Instant Noodles Curry A good to eat.9 110. Mid-day. .5 7. Company research.2 206.com.1 123. The Hindu Business Line. South Africa.million 2005 2006 2007 2008 2009 2010Instant 6.077.9 71.1 175.6instantnoodles Forecast Retail Sales of Noodles by Subsector: Volume 2005-2010000tonnes 2005 2006 2007 2008 2009 2010Instant 59.6 8. Sri Lanka.6 84. Brazil. Apart from strong brand equity and affordable price. India.667. Malaysia.8 0. Brunei.2 11. India Infoline. noodles are no longer considered as processed food and have slowly been accepted as part of regular household menu.611. Maggi instant noodles curry and fried Maggi noodles.6 0. which often craves hot and spicy food. The new range. “It tastes . we are constantly innovating to make our products more relevant to our consumers in line with evolving trends and needs. “Before venturing into developing a new product we gathered insight from the local youths behaviour. devilled kottu and devilled chilli chicken – the range has been created to suit the local palate. favourites and then assessed it and came up with what we call the ultimate taste experience for the Sri Lankan youth. has been produced using the company‟s world-renowned research and development expertise after an in-depth consumer research carried out among the youth. the first in a line up of innovations to be introduced by Nestlé this year. Maggi Noodles Instant Tom Yam. the company also introduced its Brand Ambassador for the devilled noodles. It exports a wide range of Maggi products to international market including Malaysia origin Maggi Noodles Instant Curry. Coming under three categories – devilled chicken. Maggi devilled noodle packs comes with additional sachets of savoury sauce and spicy oil to add that extra fiery zest. Maggi Mi Goreng Perencah Cili Lazat and Maggi Mi Goreng Perencah Kari Ori. Maggi Noodles Instant Chicken. which adorn the table of Mamak stalls across the country. “As Sri Lanka‟s leading nutrition. cooking oil and daily use products of popular Asian brands to many foreign destinations. taste and aroma to the product. Taking the new range forward.Maggi instant noodle curry is one of the favourite instant snacks in Malaysia and Singapore. trends. Many Malaysian traders export Maggi products to neighbourhood countries at wholesale prices. “Maggi Noodles is a brand that has found a place in the hearts of Sri Lankan adults and children alike. Sri Lankan-born Bollywood actress Jacqueline Fernandez.” she added. beverage.” Nestlé Assistant Vice President Priyadarshanie Karunaratne said. Its strong brand equity encouraged us to develop a new range of instant noodle products for youth with new indigenous flavours to cater to changing consumer needs. health and wellness company. It has a very unique curry flavor that blends perfectly with the texture of the noodles.” Brand Ambassador Fernandez acknowledged that the new noodle range was a definite new-found-love for her. It also exports a wide range of grocery items such as food. Nestlé‟s Maggi Noodles on Thursday introduced a new range of „devilled‟ noodles which is expected to ignite the taste buds of local youth. thereby giving root to the new range. Hanyaw Malaysia is one such well known Malaysian exporter engaged in exporting high quality branded products at competitive prices with increasing number of international and Philippines customers discovered every day. Results showed that the local youth favoured hot and spicy dishes. Maggi Noodles Instant Asam Laksa . The delicious spicy flavours of our new range are sure to delight our consumers with great taste and the familiar tang of home. mainly in the „devilled‟ form. recently launched its most indigenous MAGGI Noodles product in Sri Lanka. Health and Wellness Company. MAGGI Ricey is developed in line with the country‟s strong focus to promote the use of locally produced raw materials for the manufacture of food and beverages. Jacqueline Fernandez fits very well with this youth-centric range. As a brand that strives to uphold our consumers‟ trust in us. It therefore gives us great pleasure to offer MAGGI Ricey.incredible and has got such a fun. “A trusted Sri Lankan household favourite.” added Hofbauer. over the years.” With Sri Lanka keenly focused on developing a self-sustained economy. combined the enriching goodness of Sri Lankan premium rice with a blend of chicken curry flavour. she blends perfectly with the essence of our Maggi Devilled Noodles. Nestlé has such huge brand ambassadors all over the world that I am honoured to be given a chance to represent one of their products. with the aim of expanding production capacity for all MAGGI Noodles products. the world‟s leading Nutrition. premium rice and comple mented with Sri Lanka‟s favourite chicken curry flavour. vibrant and youth-centric persona. “MAGGI „two minute‟ noodles has delighted generations of Sri Lankans since 1984. Minister of Economic Development Basil Rajapaksa recently announced aims to reduce the per capita consumption of wheat flour since Sri Lanka has achieved selfsufficiency in rice production as of this yea Maggi Devilled range with indigenous flavours caters to young adults who love hot and spicy food. The Noodles plant has further enabled Nestlé to contribute towards rural development by providing job opportunities to many individuals in the community. dynamic and vibrant youth icon of international fame with a strong Sri Lankan identity. developed by our local team with the support of our world renowned Nestlé R&D. As a locally manufactured product. MAGGI Ricey caters exclusively to the tastes and nutritional needs of Sri Lankans. we continuously endeavour to delight and add further value to our consumers‟ diets and lifestyles. The delicious spicy flavours of our new range are sure to delight the youth of Sri Lanka. won the hearts of Sri Lankan adults and children alike with its range of diverse flavours that cater to consumers of all ages. MAGGI has.” Nestlé‟s Managing Director Alois Hofbauer noted that Jacqueline was picked since she represents a new Sri Lanka. “Creating Shared Value for Nestlé and for society that‟s the way we do business. Nestlé combines its expertise in the world‟s most cutting edge R&D together with indigenous favourites to offer our MAGGI fans a product that will undoubtedly excite their palettes. As a young. especially such a tasty one made especially for the youth. MAGGI Ricey is produced with high premium rice that has been cultivated by local rice farmers.” said Nestlé Lanka Assistant Vice President – Food Priyadarshinie Karunaratne. we have under the umbrella brand of MAGGI. We look forward to delighting thousands of MAGGI consumers across the country with our latest MAGGI noodles innovation!” said Nestlé Lanka Managing Director Alois Hofbauer. The launch of the product comes in the wake of the opening of the Noodles plant commissioned by Nestlé early this year. MAGGI Ricey – a delicious and nutritious noodles product made with the goodness of locally produced. a locally popular combination of rice and chicken curry. . I am definitely excited to be a part of it. vibrant. With an in-depth understanding of our local consumers. “It gives me great pleasure to introduce MAGGI Ricey. to our loyal consumers. “Maggi Devilled Noodles are extremely youth centric with dynamic.” Nestlé. fun and hot brand personalities. With the launch of MAGGI Ricey. enabling Nestlé to make a positive impact on their livelihood and on rural economies overall. Sri Lankan beauty queen and superstar. . Bollywood actress.Maggi Noodles Devilled range . It also comes with additional sachets of savoury sauce/spicy oil for that added fiery zest. Jacqueline Fernandez is the face of Nestlé’s new hot Maggi Noodles Devilled range. r. Devilled Chilli Chicken and Devilled Kottu are 3 new scintillating flavours. Variants: Devilled Chicken Devilled Chilli Chicken Devilled Kottu Internationally acclaimed youth icon. taste and aroma.Devilled Chicken.
Report "Maggi Noodles Was Launched in India in 1984 by Nestle"