A Study on Brand positioning of Nestle Maggi and Nissin Top Ramen

Study of Brand Positioning of Nestle Maggi And Nissin Top Ramen

PARUL INSTITUTE OF MANAGEMENT 1

PART-1

GENERAL

INFORMATION



1-INDUSTRY OVERVIEW It is challenging to find an inclusive way to cover all aspects of food production

and sale. The Food Standards Agency, a government body in the UK, describes it

thus:

"...the whole food industry – from farming and food production, packaging and

distribution, to retail and catering.”

The Economic Research Service of the USDA uses the term food system to

describe the same thing:

"The U.S. food system is a complex network of farmers and the industries that link

to them. Those links include makers of farm equipment and chemicals as well as

firms that provide services to agribusinesses, such as providers of transportation

and financial services. The system also includes the food marketing industries that

link farms to consumers and which include food and fiber processors, wholesalers,

retailers, and foodservice establishments.”

1.1. Industry size

Processed food sales worldwide are approximately US$3.2 trillion (2004).

In the U.S., consumers spend approximately US$1 trillion annually on food, or

nearly 10 percent of the Gross Domestic Product (GDP). Over 16.5 million people

are employed in the food industry.

In the United Kingdom, the food industry is extensive. It employs well over half a

million people and has a turnover in excess of £70bn. It is the largest

manufacturing sector in the UK and represents around 15% of the total

manufacturing sector in the UK. Around 13% of the people working in

manufacturing in the UK work in the food and drink industry



1.2. Food processing

Food processing is the methods and techniques used to transform raw ingredients into

food for human consumption. Food processing takes clean, harvested or slaughtered and

butchered components and uses them to produce marketable food products. There are

several different ways in which food can be produced.

One off Production This method is used when customers make an order for something

to be made to their own specifications, for example a wedding cake. The making of

One off Products could take days depending on how intricate the design is and also the

ability of the chef making the product.

Batch Production This method is used when the size of the market for a product is not

clear, and where there is a range within a product line. A certain number of the same

goods will be produced to make up a batch or run, for example at Gregg's Bakery they

will bake a certain number of chicken bakes. This method involves estimating the

amount of customers that will want to buy that product.

Mass production this method is used when there is a mass market for a large number of

identical products, for example, chocolate bars, ready meals and canned food. The

product passes from one stage of production to another along a production line.

Just in Time this method of production is mainly used in sandwich bars such as

Subway. All the components of the product are there and the customer chooses what

they want in their product and it is made for them fresh in front of them.

http://en.wikipedia.org/wiki/Subway_%28restaurant%29

http://en.wikipedia.org/wiki/Subway_%28restaurant%29



1.3. Wholesale and distribution

A vast global transportation network is required by the food industry in order to

connect its numerous parts. These include suppliers, manufacturers, warehousing,

retailers and the end consumers. There are also companies that add vitamins, minerals,

and other necessary requirements during processing to make up for those lost during

preparation. Wholesale markets for fresh food products have tended to decline in

importance in OECD countries as well as in Latin America and some Asian countries

as a result of the growth of supermarkets, which procure directly from farmers or

through preferred suppliers, rather than going through markets.

The constant and uninterrupted flow of product from distribution centers to store

locations is a critical link in food industry operations. Distribution centers run more

efficiently, throughput can be increased, costs can be lowered, and manpower better

utilized if the proper steps are taken when setting up a material handling system in a

warehouse.

1.4 Retail

With populations around the world concentrating in urban areas, food buying is

increasingly removed from all aspects of food production. This is a relatively recent

development, having taken place mainly over the last 50 years. The supermarket is the

defining retail element of the food industry, where tens of thousands of products are

gathered in one location, in continuous, year-round supply. Restaurants, Cafes,

Bakeries and Mobile trucks are also ways consumers can purchase food.

Food preparation is another area where change in recent decades has been dramatic.

Today, two food industry sectors are in apparent competition for the retail food dollar.

The grocery industry sells fresh and largely raw products for consumers to use as

ingredients in home cooking. The food service industry by contrast offers prepared

food, either as finished products, or as partially prepared components for final

"assembly".



1.5. Food industry technologies

Sophisticated technologies define modern food production. They include many areas.

Agricultural machinery, originally led by the tractor, has practically eliminated human

labor in many areas of production. Biotechnology is driving much change, in areas as

diverse as agrochemicals, plant breeding and food processing. Many other areas of

technology are also involved, to the point where it is hard to find an area that does not

have a direct impact on the food industry. Computer technology is also a central force,

with computer networks and specialized software providing the support infrastructure

to allow global movement of the myriad components involved.

1.6. Marketing

The role of product creation, advertising, and publicity become the primary vehicles

for information about food. With processed food as the dominant category, marketers

have almost infinite possibilities in product creation.

1.7. Media & Marketing

A key tool for FMCG marketing managers targeting the supermarket industry includes

national titles like The Grocer in the U.K., Checkout in Ireland, Progressive Grocer in

the U.S., and Private Label Europe for the entire of the European Union.

1.8. Research and development

Research in agricultural and food processing technologies happens in great part in

university research environments. Projects are often funded by companies from the food

industry. There is therefore a direct relationship between the academic and commercial

sectors, as far as scientific research.



1.9. Prominent Food Companies The instant noodle market is dominated by MNCs; very few local players have a sizeable

presence. Some of the key players in the market along with their brands are:

1. Nestle (Maggi)

2. Hindustan Unilever (Knorr Soupy Noodles)

3. GlaxoSmithKline Consumer Healthcare (Foodless)

4. Capital Foods Ltd. (Ching's Secret)

5. ITC (Sun feast Yippee noodles)

6. CG Foods India Pvt. Ltd. (waiwai)

7. Future Group (tasty Treat)



2. COMPANY OVERVIEW

2.1. NESTLE-MAGGI

2.1.1. Introduction to Maggi

Maggi is a Nestle brand of instant soups, stocks, bouillon cubes, ketchups, sauces,

seasonings & instant noodles. The original company came into existence in 1872 in

Switzerland, when Julius Maggi took over his father’s mill. It quickly became a pioneer

of industrial food production, aiming at improving the nutritional intake of worker

families. It was the first to bring protein-rich legume meal to the market, which was

followed by ready-make soup based on legume meal in 1886. In 1897, Julius Maggi

founded the company Maggi in the German town of Singe where it is still established

today.

Maggi comes to India – teething troubles Maggi noodles was launched in India in the

early 1980s.Carlo M Donati, the president Chairman and Managing Director of Nestle

India Ltd, brought the instant noodle brand to India during his short stint here in the early

eighties. At that time there was no direct comparison. The first competition came from

the ready-to-eat snack segment which included snacks like samosas, biscuits or may be

homemade snacks like pakoras or sandwiches. So there were no specific buy and make

snack! Moreover both competitors had certain drawbacks in comparison. Snacks like

samosas are usually bought out and outside food is generally considered unhygienic and

unhealthy. The other competitor „homemade‟ snacks overcame both these problems but

had the disadvantage of extended preparation time at home. Maggi was positioned as the

only hygienic homemade snack! Despite this, Nestle faced difficulties with their sales

after the initial phase. The reason is the positioning of the product with the wrong target

group. Nestle had positioned Maggi as a convenience food product aimed at the target

group of working women who hardly found any time for cooking.

Unfortunately, this could not hold the product for very long. In the course of many

market researches& surveys, the firm found that children were the biggest consumers of

Maggi noodles. Quickly they repositioned it towards the kids segment with the various

tools of sales promotion like color pencils, sketch pens, fun books, Maggi clubs which

Worked wonders for the brand.



Maggi was positioned as „2-minute noodles‟ with a punch line that said „Fast to cook!

Good to eat! ‟and this gave the implied understanding to the consumer that it was a

„between meals‟ snack. The company could have easily positioned the product as a meal,

either lunch or dinner. But, it chose not do so, because the Indian consumer mindset

noodles would have been futile. The firm did not position it as a „ready-to-eat‟ meal

either as the housewife prefers to „make‟ a meal for her kids rather than buy it for them.

And if she can make it in two minutes with very little effort, then obviously it’s a hit with

her! What’s more, if kids also love the taste, the product is as good as sold! So the 2-

minute‟ funda coupled with the „yummy taste worked‟.

2.1.2. BRAND STORY Launched in 5 flavors initially – Masala, Chicken, Capsicum, Sweet & sour, and

Lasagna – Maggi had to fight hard to be accepted by the Indian consumers with their

hard-to-change eating habits. The packaged food market was very small at this time;

Nestle had to promote noodles as a concept, before it could promote Maggi as a brand. It

therefore devised a two-pronged strategy to attract mothers on the „convenience‟ plank

and lure kids on the „fun‟ plank. Gradually, the market for instant noodles began to

grow. The company also decided to focus on promotions to increase the brand

awareness. In the initial years, Nestle promotional activities for Maggi included schemes

offering gifts (such as toys & utensils) in return for empty noodles pack.

According to analysts the focus on promotions turned out to be single largest factor

responsible for Magi’s rapid acceptance. Nestlé’s Managers utilized promotions as

measured to meet their sales target. Gradually, sales promotion became a crutch for

Maggi noodles sales. Later many of the Magi’s extensions also made considerable use

of promotional schemes. The focus of all Magi’s extensions was more on below the line

activities rather than direct communication. In addition to promotional activities, Maggi

associated itself with main stream television programme and advertised heavily on kids

programme and channels. After its advertisements with taglines like “mummy

bhookhlagihai, bas do minute” and fast to cook good to eat Maggi popularity became

highly attributed to extremely high appeal to children. As a result, Maggi

Annual growth was 15% in its initial years



2.1.3. Maggi in India

Maggi owned by Nestle is a brand that created a category for itself in the Foods market

in India. The brand which is famous for the Noodles has evolved into the umbrella

brand for Nestle in the Food segment.

Nestle launched its noodles in the Indian market in the early 1980's. Nestle wanted to

explore the potential for such an Instant food among the Indian market. It took several

years and lot of money for Nestle to establish (I would say create) its Noodles brand in

India. Now it enjoys around 50% market share in this segment which is valued at

around 250 cores.

Maggi has faced lot of hurdles in its journey in India. The basic problem the brand

faced is the Indian Psyche. Indian Palate is not too adventurous in terms of trying new

tastes. That may be the reason why we are still stuck with Idli and Sambhar.

So a new product with a new taste that too from a different culture will have difficulty

in appealing to Indian market.

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

the working women. But it found that the sales are not picking up despite heavy

promotion .Research then showed that Kids were the largest consumers of the brand.

Realizing this, Nestle repositioned the brand towards the kids using sales promotions

and smart advertising.

Now Indians are the largest eaters of Maggi Noodles in the world. Maggi Noodles is a

marketing success story. During 1997 Maggi changed its formulation. It was during

that time that Indo Nissin - a Japanese company launched its Noodles brand "Top

Ramen" with lot of promotion and with SRK endorsing the brand. TopRamen gave

Maggi a run for its money. The change in taste of Maggi was a mistake. The

consumers rejected the new taste of Maggi. And in 1999 Maggi launched Noodles

with the original taste. Nestle was ready to accept the consumers verdict and it paid off

handsomely. Top Ramen could not sustain the growth it had for long



Maggi campaigns were revolved around its "convenience to make and good to eat”

qualities. Ready in “2 minutes “was a proposition that was well received by the

market.

In 2005 Nestle made a very smart move. It knew that although kids love noodles, the

parents were bothered about the health aspect of Noodles which was made of Maida.

Hence Maggi launched Maggi Atta Noodles with the baseline " taste bhi health bhi"

.Reports suggest that after 10 months of the launch , the product has been well

received by Indian consumers. A Maggi noodle is an example of a brand that knows

the customer and willing to learn from the mistakes.

Maggi also tried to leverage the success of the Noodles to other food products like

sauces, tastemakers, soups etc.

Maggi sauces need special mention because it is another success story. Maggi have a

market share of 45% in the 180crore ketchup market in India. Maggi leveraged the

brand equity very effectively. The product quality was good and the communication

was excellent. The brand was positioned as a "Different" sauce with the baseline “It’s

different".

Customers was intrigued as to what is different about the brand and was curious to try

the sauce (may be surprised to find nothing different, but that is marketing honey!).

The ads featuring Jawed and Pankaj kapoor was superb and funny. It was created by

JWT. The new campaigns are handled by Publicist and the baseline has been changed

ted to “enjoy the difference".

•There was no need to change the baseline, may be ad agencies have an ego problem

in accepting the creativity of another agency. So agencies change the baseline even at

the cost of the brand. In this case even though the new baseline “enjoy the difference"

was not very different from the old one, was it a change for the sake of change?

•I strongly feel that the brand managers should take the ownership of the brand and the

way it is communicated. If it is left to agency alone, every time the agency changes,

the Communication changes.

•Maggi after its long and tough journey is enjoying its well deserved success. Let us

wait and watch for more journeys of Maggi.



2.2. NISSIN-TOP RAMEN

2.2.1. Introduction to Nissin top ramen

Nissin Foods is a world-wide company that makes instant ramen noodles. It was

established in Japan on September 4, 1948 by Momofuku Ando as Nissin Food Products

Co., Ltd. of Japan (Nisshin Shokuhin Kabushiki-gaisha) and ten years later introduced

the first instant ramen noodle product, Chikin Ramen (Chicken Ramen). They established

a US subsidiary Nissin Foods in 1970 and sold instant ramen noodle products under the

name Top Ramen. Instant noodles (1958) and cup noodles (1971) were both invented by

Momofuku Ando. Nissin Foods has its headquarters in Yodogawa-ku, Osaka. The

company moved to its current headquarters in 1977, when the construction of the

building was completed.

Nissin Foods has established offices and factories in various countries, such as Brazil

(since 1981), Hong Kong (since 1985), India (since 1992), Germany (since 1993),

Thailand (since 1994), China (since 1995) and Mexico (since 2000). Their products are

also sold in Philippines, Taiwan, Singapore, Canada, Sweden, Malaysia and Australia.

Nissin Foods are also Purveyors to the Imperial House of Japan.

Nissin Foods is affiliated with Nisshin Seifun Group Inc., Nisshin OilliO Group, Ltd.,

Nisshinbo Holdings Inc. nor Nissin Healthcare Food Service Co., Ltd.



2.2.2. Products

• Nissin Top Ramen

• Nissin Chikin Ramen

• Nissin Cup Noodles

• DemaeItcho

• Doll Brand - created by Winner Food Products Limited (est. 1968), a subsidiary of

Nissin since 1984

• Chow Mein

• Bowl Noodles, Rich and Savory, and Hot and Spicy

• Spice Route Bowl and Boxes, Sichuan, Korean and Thai

• NuPasta Bowls and bags

2.2.3. Core Value-Quality policy

“We continuously strive to meet customer expectations and trust by providing affordable

products of good taste and convenience without compromising on quality.”



2.2.4. Quality & Commitment

2.2.4.1. “Assuring Ultimate Quality and Safety.”

NISSIN FOODS HOLDINGS has developed and operates its own rigorous food testing

and quality assurance system, which monitors handling and processing safety.

2.2.4.2. Safety as an exacting science

In 2002, we established the Food Safety Research Institute to develop a scientifically

based quality assurance infrastructure, allowing consumers and their families’ total trust

in our quality and safety. The institute monitors the quality of daily production through

on-site quality surveys and process control; it plays a critical role in ensuring the quality

of our products.

In April 2008 the Food Safety Research Institute obtained certification for ISO 17025

(the international standard for testing capabilities and management systems) and it

continues to upgrade its quality control systems.

2.2.4.3. Assuring food safety at the source

The Food Safety Research Institute also performs safety audits under Nissin

Inspection Standards for Food Safety (NISFOS), established in 2004. These audits cover

food safety management systems, manufacturing standards, facilities maintenance and

sanitation at the plants of raw materials suppliers. Evaluation is carried out objectively

using inspection checklists, and the inspection results are expressed numerically as

“Safety inspection points.” The institute provides remedial guidance and quality control

systems support to a factory that receives a low score.

2.2.4.4. Food safety in our Manufacturing

In manufacturing process quality control, the institute posts supervisors to supplier sites

to confirm “4M Control”, the confirmation of materials, methods, machines and

manpower involved in manufacturing processes.



3. OVERVIEW OF MARKET

3.1. OVERVIEW OF INDIAN NOODLES MARKET

“What Xerox is to photocopier and Colgate to toothpaste, Maggi is to noodles in India."

- The Economic Times, a prominent newspaper in India, in 2003.

"Maggi is the leader in the Instant Noodles category because it is constantly improving its

understanding of the consumer to give them excellent and tasty products that provide

nutrition, health, and wellness."

- Martial Rolland, chairman and managing director, Nestlé India Ltd., in 2006.

"Maggi has managed to enter Indian homes to change the traditional food habits of Indian

children on their promise of convenience. This brand has understood the psychology of

Indian mothers and positioned itself for mother-child indulgence."

- Business Week, a prominent business magazine, in 2006.

Indian noodle market (instant noodles) is estimated at INR 1,300 to 1,600 cores (USD

300 – USD 350 MN) in 2010. According to estimates, the market is expected to reach

INR 3,000-3,500 cores by 2015 clocking a CAGR of 20%. The market is dominated by

instant noodles and

Nestle brand – Maggi (which was first noodle brand to be introduced in India in mid

1980s). Nestle has virtually dominated the Indian noodle market till now but lately many

large FMCG players and retail chains have launched their products in this lucrative space.

Urbanization, rising income levels, working couples, interstate migration and changing

lifestyle of young India are key drivers for the noodles market. The product was

positioned as meal which is filling and can be prepared in just a few minutes, thus

offering both convenience and time saving.



Trends in Indian noodle market

1. Increasing competition: Competition in instant noodle category has intensified with

players such as GlaxoSmithKline (Horlicks Foodles), ITC (Sun feast Yippee noodles),

Capital Foods and Hindustan Unilever launching new products in the market. Private

label brands such as Tasty Treat by Future Group (Big Bazaar retail chain) have also

been launched an it is expected that many more private label brands may hit the market.

2. New product launches and extensive marketing: All players new or old have been busy

launching new products and marketing campaigns. Maggi has launched an extensive

campaign with their new product vegetable multigrain noodle. Tasty Treat increased its

variants from two to five. Similarly, Foodles is stressing on the health aspect of its

products.

3. Stress on health and wellness: As on all other food categories, players are stressing on

health and wellness aspects of their products. Maggi launched Atta noodles and

multigrain noodles to woo customers while Glaxo‟sFoodles also stresses on the

multigrain aspect of their product

4. Traditional flavors still dominate: Masala, chicken and tomato are most popular flavors

in the market

5. Addressing rural market: Noodles are primarily consumed in urban India and to

expand this market companies such as Nestle have introduced small sized and low cost

products to address the demand of rural market. The success of this effort is still to be

seen.



Opportunities in Indian noodle market

1. Health and wellness theme: Health and wellness theme based packaged food is gaining

popularity in India and the market of such noodles is still open as traditional player

Maggi is not associated with “health” but with convenience and taste.

2. Huge Rural market: rural India where close to 60% of Indian population resides is a

huge consumption market virtually un-penetrated by any player. Low cost products with

appropriate marketing can open up this huge market

3.2. Overview of world market

Expanding Market

National Trends in Instant Noodles Demands

Updated on May 10, 2014

Country / Region

2011

2012

2013

2014

1 China, Hong Kong 45,810 42,530 40,860 42,300

2 Indonesia 14,990 13,700 13,930 14,400

3 Japan 5,460 5,100 5,340 5,290

4 Vietnam 3,910 4,070 4,300 4,820

5 USA 3,900 3,950 4,080 3,960

6 Republic of Korea 3,220 3,340 3,480 3,410

7 India 1,230 1,480 2,280 2,940

8 Thailand 2,220 2,170 2,350 2,710

9 The Philippines 2,480 2,500 2,550 2,700

10 Brazil 1,500 1,690 1,870 2,000

11 Russia 2,710 2,400 2,140 1,900

12 Nigeria 1,080 1,400 1,600 1,670

13 Malaysia 1,180 1,210 1,200 1,220

14 Mexico 900 860 860 830

15 Taiwan 880 840 820 780



Growth of the Maggi Company

•Sales of CHF 60.9 billion, 7.3% organic growth, 4.1% real internal growth

•Market positions stronger across regions and categories

•Good growth in developed markets; double-digit growth in emerging markets

•Full-year outlook: slight over-performance against our 5-6% long-term organic growth

range and we continue to strive for a margin improvement in constant currencies

Paul Bulcke, Nestlé CEO: “In a tough environment, we continued to build our

capabilities and positions for the future while maintaining strong growth across regions

and categories. The constant renovation of our existing product portfolio together with

our strong pipeline of game-changing innovations resulted in many market share gains. A

high rate of innovation also requires significant consumer-facing marketing support. For

the year as a whole, in spite of input cost pressures, we expect to slightly over-perform

against our long-term organic growth range of 5-6% and continue to strive for a margin

improvement in constant currencies”.

Vevey, 20 October 2011 – In the first nine months of 2011, the Nestlé Group’s organic

growth was 7.3%, including 4.1% real internal growth and pricing of 3.2%. Foreign

exchange decreased sales by 15.1% and divestitures (mainly Alcon) net of acquisitions

by 5.7%.



PART-2

PRIMARY STUDY



INTRODUCTION OF THE STUDY

4.1. LITERATURE REVIEW

1) Journal of Marketing Management; Apr92, Vol. 8 Issue 2, p127-146, 20p

This paper examines the reasons for decisions to source a range of imported food items

by a large UK retailer, with emphasis upon a comparison of decisions for manufacturer

and retail brands. Previous studies of retail buying processes are reviewed with particular

emphasis on the food sector and retailer label products. Possible differences in buying

decisions for manufacturer and retailer labels are advanced. Results of the present study

show the importance of quality considerations, the search for product variety and close

matching of products to overall market positioning.

2) Dot Foods, Inc. Source: Dot Foods, Inc.; Jun2007, p1, 8p

A company profile of Dot Foods Inc., the largest food re-distributor in the U.S., is

presented. An overview of the company is given, along with key facts including contact

information, number of employees and revenues. A SWOT analysis is provided which

includes strengths, weaknesses, opportunities for improvement and threats.

3) McCormick& Company, Inc. Apr2007, p1, 9p

A company profile of McCormick & Co. Inc., which is engaged in the manufacture,

marketing and distribution of spices, herbs, seasoning blends and other flavors to the

entire food industry, is presented. An overview of the company is given, along with key

facts including contact information, number of employees and revenues. A SWOT

analysis is provided which includes strengths, weaknesses, opportunities for

improvement and threats.

4) Delhaize "Le Lion" SA; Jun2007, p5, 4p

A business analysis of Delhaize Group, a company engaged in the business of food

retailing, is provided, focusing on its strengths, weaknesses, opportunities for

improvement and threats to the company. Strengths include market leadership.

Weaknesses include declining revenue growth. Opportunities for improvement include



Growing demand for pharmaceuticals in the U.S. Threats to the company include intense

competition.

5) Frito-Lay; Jun2007, p1, 7p

A company profile of Frito Lay, a snack food division of PepsiCo, which is engaged in

the manufacture and distribution of a wide variety of snack foods, is presented. An

overview of the company is given, along with key facts including contact information,

number of employees and revenues. A SWOT analysis is provided which includes

strengths, weaknesses, opportunities for improvement and threats.

6) The Role of Location in the Fast Food Industry. Authors: Thomadsen,

[email protected]:Marketing Science; Nov/Dec2007, Vol. 26 Issue 6,

p792-804, 13p, A

This paper examines optimal product positioning strategies of asymmetric firms in the

context of retail outlet locations in the fast food industry. The relationships between

profits and product differentiation reveal that both McDonald's and Burger King are

better off avoiding close competition if the market area is large enough. However, in

small market areas, McDonald's would prefer to be located together with Burger King

rather than have the two outlets be only a slight distance apart. In contrast, Burger King's

profits always increase with greater differentiation. Offsetting these incentives is the

desirability of locating centrally to appeal to the most customers. The equilibrium

depends on the market's size

7) Dean Foods Company; Oct2007, p5, 5p,

A business analysis of Dean Foods Co., a food and beverage company engaged in

processing and distribution of milk and dairy products is provided, focusing on its

strengths, weaknesses, opportunities for improvement and threats to the company.

Strengths include leading market position. Weaknesses include customer concentration.

Opportunities for improvement include increasing health consciousness. Threats to the

company include increasing competition



8) Tate& Lyle, PLC SWOT Analysis; Mar2008, p5, 4p,

A business analysis of Tate & Lyle (T&L) PLC, a manufacturer of renewable food and

industrial ingredients is provided, focusing on its strengths, weaknesses, opportunities for

improvement and threats to the company. Strengths include strong market position.

Weaknesses include low returns. Opportunities for improvement include growing health

consciousness.

9) Koninklijke Wessanen NV; Jan2008, p1, 8p

A company profile of Koninklijke Wessanen NV, a multi-national food company that

offers natural and premium-taste food products, is presented. An overview of the

company is given, along with key facts including contact information, number of

employees and revenues. A SWOT analysis is provided which includes strengths,

weaknesses, opportunities for improvement and threats.

10) PepsiCo, Inc; Jun2008, p5,

A business analysis of PepsiCo Inc., a food and beverages company which manufactures,

markets, and sells snacks and carbonated and non-carbonated beverages is provided,

focusing on its strengths, weaknesses, opportunities for improvement and threats to the

company. Strengths include strong market position. Weaknesses include business

concentration. Opportunities for improvement include acquisitions and alliances. Threats

to the company include intense competition.

11) Del Monte Foods Company; Jun2008, p5, 4p

A business analysis of Del Monte Foods Co. is a producer, distributor and marketer of

packaged fruits and vegetables, is provided, focusing on its strengths, weaknesses,

opportunities for improvement and threats to the company. Strengths include dominant

market position. Weaknesses include customer concentration. Opportunities for

improvement include higher demand for organic products. Threats to the company

include intense competition.



12) General Mills, Inc.; Jun2008, p5, 5pA business analysis of General Mills Inc., which

is a leading producer of packaged consumer foods in the U.S., operating exclusively in

the consumer foods industry is provided, focusing on its strengths, weaknesses,

opportunities for improvement and threats to the company. Strengths include its strong

market position. Weaknesses include its customer concentration. Opportunities for

improvement include an increasing demand for private label products. Threats to the

company include increasing competition.

13) Journal of Marketing Research (JMR); Oct2010, Vol. 47 Issue 5, p866-882, 17p

Few studies have considered the relative role of the integrated marketing mix

(advertising, price promotion, product, and place) on the long-term performance of

mature brands, instead emphasizing advertising and price promotion. Thus, little

guidance is available to firms regarding the relative efficacy of their various marketing

expenditures over the long run. To investigate this issue, the authors apply a multivariate

dynamic linear transfer function model to five years of advertising and scanner data for

25 product categories and 70 brands in France.

14) Coloring Dairy Foods. Source: Dairy Foods; Sep2011, Vol. 112 Issue 9, p44-50, 7p

An interview with several food color suppliers including Jody Renner-Nantz, Emina

Goodman, and Rodger Jonas is presented. Renner-Nantz says that avoiding certified

colors in dairy foods is not impossible, in which matching the hue of certified colors with

exempt colors will be the challenge. Goodman states that choosing the right color

becomes the brand positioning decision of the company. Jonas notes that improvement in

color expression and stability will be in for the food color industry

15) Lotte Group; Dec2011, p1-8,

A business analysis of the Lotte Group, a company that is engaged in foods, distribution,

tourism and other business endeavors, is provided, focusing on the strengths, weaknesses,

opportunities and threats (SWOT) faced by the company. Strengths include strong market

position. Its weakness is its ownership status. Opportunities for improvement include a

positive outlook for the hotel industry. Threats to the company include competition.



4.2. BACKGROUND OF THE STUDY

Brand positioning refers to “target consumer’s” reason to buy your brand in preference to

others. It is ensures that all brand activity has a common aim; is guided, directed and

delivered by the brand’s benefits/reasons to buy; and it focuses at all points of contact

with the consumer.

Brand positioning must make sure that:

• Is it unique/ distinctive vs. competitors?

• Is it significant and encouraging to the niche market?

• Is it appropriate to all major geographic markets and businesses?

• Is the proposition validated with unique, appropriate and original products?

• Is it sustainable - can it be delivered constantly across all points of contact with the

consumers?

• Is it helpful for organization to achieve its financial goals?

• Is it able to support and boost up the organization?

In order to create a distinctive place in the market, a niche market has to be carefully

chosen and a differential advantage must be created in their mind. Brand positioning is a

medium through which an organization can portray its customers what it wants to achieve

for them and what it wants to mean to them.

Brand positioning forms customer’s views and opinions.



4.3. RESEARCH PROBLEM

“The Comparative analysis of brand positioning of Nestle-Maggi and Nissin-Top

Ramen”

This is the comparative analysis to know that which brand of instant noodles is dominant

into the Indian market. How Maggi and Top Ramen both positioned themselves.



4.4. Research Objective:-

1) To know how the company is positioning their Brands.

2) To study preference of consumers towards the brands.

3) Identify weak areas and provide recommendations for the sales.



5. Research Methodology

Basically 'Research' means systematic investigation to establish facts or Principles or to

collect information on a subject. In the broadest sense of the word, the definition of

research includes any gathering of data, information and facts for the advancement of

knowledge. With this view the research is undertaken as under:-



5.1. Research Design:-

• Types of Research: -The research undertaken includes objective research. The objective

research was undertaken for consumer survey.

• Data Sources: - The data sources utilized for resource includes the primary data as well

as secondary data. The primary data was utilized for the consumer survey.

• Research Methods: - The methods utilized for research comprises of survey method.

The survey method was adopted for consumer survey.

• Research Technique: - For making the consumer survey the research technique adopted

was structured questionnaire.

• Type of Questions: - The Questions included in the questionnaire for consumer Survey

were mostly the closed ended ones.

• No of Questions: - The Questionnaire for consumers included only 10 questions.

• Population: - The consumer survey of 200 respondents was conducted in Vadodara in

areas like Alkapuri, O.p.Road, Fatehgunj, Manjalpur, and Uma.

• Sampling Method: -The Sampling Technique used was convenience Sampling



6. Data Interpretation and analysis

Q: 1 which Brand of noodles Do you prefer?

Brand

Count of Brand Maggi 127

Top

ramen 55

Other 18

Interpretation: Nestle Maggi is more preferable brand into the market other than top

ramen. More than 63.5% customer likes to purchase Maggi. The market share covered by

Top- Ramen is 27.5%. The market share covered by other companies is 9%.



Q: 2 what size pack do you generally purchase?

Quantity

purchased Brand

Count of Quantity

purchased Small Maggi 50

Small Other 2

Small

Top

ramen 22

Medium Maggi 49

Medium Other 9

Medium

Top

ramen 10

Family Pack Maggi 28

Family Pack Other 7

Family Pack

Top

ramen 23

Interpretation: 14% of customer purchase family pack of Maggi, 24.5% of customer

purchase medium size Maggi and 25% of customer purchase small pack of Maggi



Q: 3 how frequently do you purchase Noodles?

Frequency Brand Count of Frequency Daily Maggi 8

Daily Top ramen 4

Weekly Maggi 71

Weekly Other 9

Weekly Top ramen 28

Fortnight Maggi 20

Fortnight Other 6

Fortnight Top ramen 12

Monthly Maggi 18

Monthly Other 1

Monthly Top ramen 8

Other Maggi 10

Other Other 2

Other Top ramen 3

Interpretation: frequency of purchasing Maggi is weekly 35.5% which is highest

Customer purchasing Maggi, daily, monthly or once in a fortnight is comparatively less



Q 4: which factors are Important for you while purchasing noodles?

Interpretation: customers give more importance to factors such as brand, price, and taste.

Importance to brand by Maggi customer is 20%, to price 14% and taste 10%

Purchasing factors Brand Count of Purchasing factors Brand Maggi 40

Brand Other 4

Brand Top ramen 19

Brand Maggi 14

Image Other 2

Image Top ramen 6

Packaging Maggi 8

Packaging Other 3

Packaging Top ramen 5

Price Maggi 28

Price Other 6

Price Top ramen 9

Quality Maggi 5

Quality Other 2

Quality Top ramen 3

Quantity Maggi 12

Quantity Top ramen 8

Taste Maggi 20

Taste Other 1

Taste Top ramen 5



5: What factors satisfy you the most in your preferred noodle brand?

Satisfying factors Brand Count of Satisfying factors Brand Maggi 42

Brand Other 4

Brand Top ramen 17

Packaging Maggi 23

Packaging Other 5

Packaging Top ramen 7

Price Maggi 16

Price Other 3

Price Top ramen 5

Taste Maggi 46

Taste Other 6

Taste Top ramen 26

Interpretation: On the basis of comparison the figures shows that the customers are

satisfied with the product’s brand and taste. In which customer are highly satisfied with

Maggi Taste 23% and brand 21%



Q 6: Which of these factors affect your purchase?

Factors affecting purchase Brand Count of Factors affecting purchase Advertisement Maggi 54

Advertisement Other 7

Advertisement Top ramen 21

Attractive Display Maggi 15

Attractive Display Other 3

Attractive Display Top ramen 10

Brand ambassadors Maggi 10

Brand ambassadors Top ramen 2

Nutrition Maggi 30

Nutrition Other 6

Nutrition Top ramen 14

Suggestion from friends Maggi 18

Suggestion from friends Other 2

Suggestion from friends Top ramen 8

Interpretation: advertisement factor of Maggi with 27% highly affects the buying

decision of customers, nutrition 15% is the 2nd important factor affecting the buying

decision



Q: 7 which media of Advertisement influence you purchase?

Media Infl. Brand Count of Media Infl. Display Maggi 4

Hoardings Maggi 12

Hoardings Top ramen 6

Newspaper Maggi 6

Newspaper Top ramen 6

Television Maggi 105

Television Other 18

Television Top ramen 43

Interpretation: Television as a media makes a huge impact in the buying decision of the

consumers. Impact of TV advertisement of Maggi on consumer is 52.5%

This is comparatively high among all the media.



Q 8: If your preferred brand is not available for repeat purchase than what

will you do?

Availability or non-

availability decision Brand

Count of Availability or

non-availability decision Go to the other shop Maggi 64

Go to the other shop Other 4

Go to the other shop

Top

ramen 30

Postpone your purchase Maggi 21

Postpone your purchase Other 7

Postpone your purchase

Top

ramen 6

Switch over to other brand Maggi 42

Switch over to other brand Other 7

Switch over to other brand

Top

ramen 19

Interpretation: if preferred brand is not available, 32% customers will go to other shop to

find Maggi, 21% customers will purchase another brand available and 10.5% customers

will wait for Maggi till I become available



Q 9: If another brand of the same product appears in the market will you

prefer to stop buying this brand & buy the new brand?

Alternative Brand Count of Alternative Can't say Maggi 32

Can't say Other 2

Can't say Top ramen 18

I may consider Maggi 33

I may consider Other 7

I may consider Top ramen 16

No I Shall not Maggi 20

No I Shall not Top ramen 8

No, not at all Maggi 42

No, not at all Other 9

No, not at all Top ramen 13

Interpretation: 21% people are loyal customer to Maggi, if any new brand appears in the

market they won’t purchase or switch over to that brand. 16.5% Maggi customers may

consider the other brand and 16 % Maggi customers are confused regarding the

purchase of another brand.



6.1. Analysis of Brand with Availability or non-availability decision of

Product

Analysis: On the non-availability of Product 32% customers purchasing Maggi will go to

other shop. While only 15% purchasing Top Ramen will move to other shop and 10.5%

will postponed their purchase for Maggi and 3% for Top ramen

Brand

Availability or non-availability

Decision

Count of

Brand Maggi Go to the other shop 64

Maggi Postpone your purchase 21

Maggi Switch over to other brand 42

Top

ramen Go to the other shop 30

Top

ramen Postpone your purchase 6

Top

ramen Switch over to other brand 19



Analysis of available alternative Product in comparison to Brand

Analysis: 21% respondents are loyal customer of Maggi, if any new brand appears in the

market they won’t switch over compare to Top ramen who may switch over. 16% Maggi

customer are confused regarding the purchase of other brand

Alternative Brand Count of Alternative Can't say Maggi 32

Can't say Top ramen 18

I may consider Maggi 33

I may consider Top ramen 16

No I Shall not Maggi 20

No I Shall not Top ramen 8

No, not at all Maggi 42

No, not at all Top ramen 13



Analysis of Purchasing factors, Satisfying factors and Factors affecting

purchase

Analysis: while considering brand as a purchasing factor 9% respondents found brand as

a satisfying factor and advertisement as a useful media whereas while considering price

as a purchasing factor 2.5% respondent found brand as a satisfying factor and

advertisement as a factor affecting consumer buying decision

Purchasing factors Satisfying factors Factors affecting purchase Brand Brand Advertisement

Brand Brand Attractive Display

Brand Brand Brand ambassadors

Brand Brand Nutrition

Brand Brand Suggestion from friends

Brand Price Advertisement

Brand Price Nutrition

Brand Price Suggestion from friends

Price Brand Advertisement

Price Brand Attractive Display

Price Brand Nutrition

Price Brand Suggestion from friends



Analysis of Purchase frequency with age group

Analysis: respondent between age group of 15-25 consume more Maggi in a week

That is 10.5% more than top ramen. Daily and monthly Consumption of Maggi and

TopRamen is comparatively less

Frequency Age Brand Count of Frequency Daily 15 To 25 Maggi 6

Daily 15 To 25 Top ramen 3

Daily 25 To 35 Maggi 1

Daily 25 To 35 Top ramen 1

Weekly 15 To 25 Maggi 35

Weekly 15 To 25 Top ramen 14

Weekly 25 To 35 Maggi 23

Weekly 25 To 35 Top ramen 6

Monthly 15 To 25 Maggi 8

Monthly 15 To 25 Top ramen 5

Monthly 25 To 35 Maggi 4

Monthly 25 To 35 Top ramen 2



7. FINDINGS

1) Nestle-Maggi brand is most preferable into the market because of their strong brand

positioning.

2) Most of the people focus on the taste/flavor, Brand – which is of paramount

importance for health, and price while purchasing the noodles.

3) From the research we can say that most of the people preferred only Maggi brand other

than competitors. –Brand power & Brand legacy can be the other reason for escalated

sales.

4) Top Ramen is also a good brand but they failed to position their brand properly into

the Indian market.

5) Advertisement on Television media is more suitable for the noodle manufacturing

company to enhance their brand.

6) When the preferred brand of noodles is not available at one place than people go to

search at other place or may switch over to other brand.

.



8. LIMITATIONS OF THE STUDY

• The Data collected from the customers might not be very accurate to obtain the desired

information.

• The sample size taken is small to make a universal statement

• The final conclusion can be also affected by some of the extraneous variables.

• Though the study represents the position of Nestle-Maggi in Vadodara. Due to small

sample size, the finding may not be a true representative and it cannot be generalized

across India.

• Biasness of the respondent.

• Lack of sufficient information.



Conclusion

Companies must focus more on sale of family size package by providing discount

So that customer purchases it more.

Companies must improve their other factors for sale of its product other than price, brand

and taste

Top ramen and others brands have to work on their taste to compete in market against

Maggi.

Top ramen have to advertise more about its product and nutrition on television

An effective media for positioning

Companies have to focus on availability of brand at each and every place so that

consumer don’t switch over to other brands

Companies should keep retaining their loyal customers by maintain their brand image and

quality



Annexure

Questionnaire

NAME:

GENDER:

AGE:

PLACE:

1). which brand of noodles do you prefer?

Maggi

Top ramen

Others

2). what size pack do you generally purchase?

Small

Big

Family Pack

3). How frequently do you purchase noodles?

Once in a fortnight

Daily

Weekly

Fortnight

Monthly

Other



4) Which factors are important for you while purchasing noodles (tick in the desired

column)?

Taste

Price

Quality

Packaging

Brand

Image

Quantity

5) Which factor satisfies you the most in your preferred noodle brand (tick in the desired

column)?

Taste

Packaging

Price

Brand

6) .Which of these factors affects your purchase?

Advertisement

Suggestion from friends

Brand Ambassadors

Nutrition

Attractive display

7).Which media of advertisement influence your purchase?

Television

Newspapers

Hoarding

Display



8).If your preferred brand is not available for repeat purchase then what will you do?

Postpone your purchase

Switch over to other brand

Go to the other shop to search for your preferred brand

9. If another brand of the same product appears in the market, will you prefer to stop buying this brand and buy the new brand? No, not at all I may consider No, I shall not Can’t say

Que10. If you don’t like to change to the new brand, then what are the reasons for continuing to purchase the old brand?

THANKS



BIBLIOGRAPHY

Kothari, C.R. (2004) Second Edition. Research Methodology, New Age International Pvt.

Ltd.

Kotler, Philip (2009). Thirteenth Edition Marketing Management, Dorling Kindersley

(India) Pvt. Ltd.

http://www.nissinfoods.com/company/about.php

http://www.symscio.com/Services/Reporting

http://www.google.co.in/url?sa=t&rct=j&q=brand+positioning&source

http://www.nestle.in/brands/maggi2-minutenoodles

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

https://www.maggi.in/range.aspx

https://marketingcrow.wordpress.com/2014/10/12/brand-positioning-in-noodles-market/

http://articles.economictimes.indiatimes.com/2012-11-28/news/35408963_1_instant-

noodles-category-knorr-soupy-noodles-maggi-noodles

http://www.nissinfoods.com/company/about.php

http://www.symscio.com/Services/Reporting

http://www.google.co.in/url?sa=t&rct=j&q=brand+positioning&source

http://www.nestle.in/brands/maggi2-minutenoodles

https://www.maggi.in/range.aspx

https://marketingcrow.wordpress.com/2014/10/12/brand-positioning-in-noodles-market/

http://articles.economictimes.indiatimes.com/2012-11-28/news/35408963_1_instant-noodles-category-knorr-soupy-noodles-maggi-noodles

http://articles.economictimes.indiatimes.com/2012-11-28/news/35408963_1_instant-noodles-category-knorr-soupy-noodles-maggi-noodles