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marketing project on 4P's of Maggi Tomato Ketchup - May 10th, 2009
EXECUTIVE SUMMARY
In 1991 we opened our country to foreign brands. As per this liberalizationpolicy many a foreign players ventured into our country finding it a lucrative
large mass market. Indias market potential lures foreign companies.
Many international companies that ventured in after 1991 are tallying their
profits and losses and wondering what the future holds for this market of 950
million people.
But India is a diverse country where different states have different
consumption patterns and customs. Thus competition has become the key
word in todays scenario.
Till 1970s and 80s Maggie and Kissan were the major ketchup brands but
after liberalization Heinz entered Indian market which offered tough
competition. These major giants are also facing competition from many local
players like Tops, Cremica and other local brands.
Through this project we have studied 4 Ps of marketing mix which includes
PRODUCT, PRICE, PLACE and PROMOTION for Maggi Tomato Ketchup.
Product highlights various attributes of the product. Price helps us in
analyzing whether it is competitively priced or not. Promotions showcases
which mode of promotion is most effective and how do consumers respond tovarious celebrity endorsements. Place focuses on efficiency of distribution
network of Maggi Tomato Ketchup.
We have also drawn out some inferences by applying various statistical tools
like SIGN TEST.
Towards the end we have suggested some recommendations as a group on
how can we improve the marketing mix of the product.
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Nestl, which world knows as cautious and conservatory company is a Swiss
originated 140 years old Multinational. The man at the helm is Swiss national
Carlo Donati, an all inspiration and image of the company. His philosophy is
bottom line dictating top line based on delegation and decentralization. It
resulted from a merger in 1905 between the Anglo-Swiss Milk Company for
milk products established in 1866 by the Page Brothers in Cham, Switzerland
and the Farine Lacte Henri Nestl Company set up in 1867 by Henri Nestl
to provide an infant food product.
The first Nestl factory to begin production in the United States was openedin Fulton, Oswego County, New York.
Nestl India Ltd. (NIL), the Indian subsidiary of the global FMCG major, Nestl
SA, introduced the Maggi brand in India in 1982, with its launch of Maggi 2
Minute Noodles, an instant noodles product. Nestl Indias business objective
and that of its management and employees is to manufacture and market the
Companys products in such a way as to create value that can be sustained
over the long term for consumers, shareholders, employees, business
partners and the national economy.
The product mix of Nestle India consists of milk products and baby products
(42.5%), beverages (29.3 %), processed foods (14.4 %), chocolate and
confectionary (13.8 %). Nestle India plans to expand business into similar and
diversified product categories. The management wants to leverage all the
hard work done to establish a particular brand by extending the brand in
some other areas, where it sees an opportunity to make further money. In
other words to derive the maximum benefit from having established the
brand Nestle did exactly, what it wanted with one of their brands- Maggi.
Objective of the study
In this project, our main focus was to analyze Tomato Ketchup taking into
consideration the 4 Ps of the marketing mix.
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To analyze various product attributes of Ketchups & Sauces and its
management in the current scenario.
To study the entire distribution mix of the product line.
To critically comment on the pricing strategy adopted by the company.
Lastly our study will also focus on the various promotional aspect of the
brand in lieu of ketchup and also promotional mix of the product line.
All these objective were to analyze the performance of a particular product
line of a brand followed by the suggestions which we as a group have given
in order to improve their performance in the future and also learned various
useful aspects which they have devised and implemented that has bettered
their performance.
Scope of the Study
The brand value of Nestle is $9.11bn which is approximately 5% of the
enterprise value as in August 2008(Source: The daily newspaper journal The
Mint dated 17 September, 2008). According to this report, Nestle is reported
to be among top 100 brands globally positioned at 77th place with a brand
rating of AAA. Last year, it was positioned at 87th spot.
The ketchup market in India is estimated to be around Rs 220 crore, largely
dominated by Nestls Maggi that owns 47% of the market and the Kissan
that owns 26%. Globally, it's only a blip- but India consumes about 13,800
tons of ketchup a year.
The Company launched a new variant of Maggi Tomato Ketchup called
Pichkoo.
A higher-than-expected increase in raw material prices is posing a bigger
threat for the company as of now but past have proved that their innovative
market strategies has contributed a lot to their overall growth.
Through our study we have determined the positive and negative product
attributes and thus determined the expectations of the product. This
information can be used by the company for further product modification. Wealso determined the acceptability and adaptability towards introduction of
new variants.
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MAGGI
Maggi is an over 100-year-old Nestl brand of instant soups, stocks,
bouillons, ketchups, sauces, seasonings and 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 foodproduction, aiming at the improvement of the nutrition of worker families.
Over time the scope of MAGGI has been extended from a predominantly
dehydrated cooking aid brand towards a general savory food brand including
many types of ready meals and also frozen food. This is in line with the fact
that people all over the world are cooking less and less from scratch.
There is a wide range of MAGGI products marketed worldwide in several
countries. These include dehydrated bouillon, granulated seasoning, soups,
recipe mixes, snacks, frozen foods, etc.
In 1863 Julius Maggi developed a formula for bring added taste to meals,which later became lead to the beginning of Maggi and convenience food
products.
MAGGI, known worldwide for innovation and quality worldwide, understands
that consumers are usually under great pressure in terms of time, budget,
cooking skills etc and therefore tries to establish a bond through giving ideas
and advice that make providing food easier. This results in the food provider
being appreciated by family and friends.
Maggi as a brand is globally known in the product category of bouillon or
soup cubes. Nestle decided to introduce Maggi brand in India in the sameproduct category. This soup was initially test marketed in 1974 in Kerala. The
response was not encouraging. Having then realized that the dietary habits of
Keralites are not conductive to the idea of drinking soup, test marketing of
the brand extended to Goa with the idea that Goan food habits have some
similarity with western habits. Fortunately for the company, the test turned
out to be positive and Maggi became an accepted brand in India.
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.
As of now, Maggi is the brand for 2-minute noodles, Chinese noodles,
ketchups and sauces for Nestle. As per the latest available data, sales of
Maggi 2-minute noodle in India are highest among all other Nestle products
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worldwide. Analysts say Nestle, which faced one of the most challenging
years in the FMCG industry in 2003, has realised that unless it continuously
innovates in an endeavour to provide value-for-money to consumers, the
company's bottomline may be impacted in the long run.
TOMATO KETCHUP
The ketchup market in India is estimated to be around Rs 220 crore, largely
dominated by Nestls Maggi that owns 47% of the market and the Kissan
that owns 26%.
Upto mid eighties Kissan was the number one brand in Tomato Ketchup and
around that time the competition came from Maggi -- a Nestls brand. With
Maggi launching several varieties of Tomato Ketchup there was a growth inthe market. With Kissan and Maggie fighting neck to neck other smaller but
established brands like Dipy's from Herbertsons, Volfruit from Voltas, Noga of
Nagpur Orange Federation and SunSip of Wimco gradually disappeared from
the market. Delmonte now has joined hands with Paoma Industries, the
manufacturers of Rasna Brands of soft drink concentrate and is expected to
launch Tomato Ketchup shortly. The biggest global player in Tomato Ketchup
Heinz is still waiting and watching. It was expected that they will launch
Tomato Ketchup in Indian market soon. Some of the unknown local brands of
course still existing only on price competition.
The price competition has also kept some of the other categories of foodproducts still alive.
At a time when Kissan had become generic to tomato sauce, Maggi came in
with its sauces range. Maggi was the upstad newcorner who came in with a
loud aggressive national burst. It did not come in with one, but with a range
of sauces in order to increase market share and expand the market by
offering more usage occasions, bring consumers with different needs into the
Maggi Sauces fold and weaning away users of different brands to Maggi.
From a market share of 14% in 1985, Maggi Sauces now enjoys a share of
about 50% of the market.
MAGGI TOMATO KETCHUP
Maggi Tomato Ketchup is primarily a taste enhancer, giving the food
provider taste, aroma and also contains iodised salt.
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Nestle was seriously working on brand extension to leverage brand success
in some potential product categories. The company finally decided to enter
ketchup market with the brand Maggi. Finally in 1985 when Maggi noodles
had reached 4000 tonnes business, they ensured the establishment of the
brand Maggi and launched their Maggi ketchup. Market leader Kissan was
selling its ketchup in 500 gm. Nestle decided upon 400 gm bottle to give theconsumer a price- point advantage. The main launched its product all over
India. The main focusing aspect of their advertisement was what ketchup
does to your food- tasty and more palatable. It was a very clever move, which
paved way for subsequent variants such as
1. Tomato Chilli
2. Masala Chilli
3. Chilli Garlic
PRODUCT LINE
Tomato Ketchup
Hot & Sweet
Tomato Ketchup (With onion & garlic)
Teekha Masala
Tomato Chatpat
Tomato Pudina
MARKETING MIX
Marketing decisions generally fall into the following four controllablecategories:
Product
Price
Place (distribution)
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Promotion
The term "marketing mix" became popularized after Neil H. Borden
published his 1964 article, The Concept of the Marketing Mix. Borden began
using the term in his teaching in the late 1940's after James Culliton had
described the marketing manager as a "mixer of ingredients". Theingredients in Borden's marketing mix included product planning, pricing,
branding, distribution channels, personal selling, advertising, promotions,
packaging, display, servicing, physical handling, and fact finding and
analysis. E. Jerome McCarthy later grouped these ingredients into the four
categories. These are the 4 Ps of Marketing Mix.
These four P's are the parameters that the marketing manager can control,
subject to the internal and external constraints of the marketing
environment. The goal is to make decisions that center the four P's on the
customers in the target market in order to create perceived value and
generate a positive response.
4 Ps of MARKETING MIX
Marketing decision variables are those variables under the firm's control that
can affect the level of demand for the firm's products. They are distinguished
from environmental and competitive action variables that are not totally and
directly under the firm's control. It is a great way to help us focus on the
elements of a good marketing plan that we can't control but must be awareof and anticipate such as:
- new competitors,
- new legislation,
- change in consumer confidence,
- change in consumer tastes; and
The four marketing decision variables are:
Price variables
Allowances and deals
Distribution and retailer mark-ups
Discount structure
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Product variables
Quality
Models and sizes
Packaging
Brands
Service
Promotion variables
Advertising
Sales promotion
Personal selling
Publicity
Place variables
Channels of distribution
Outlet location
Sales territories
Warehousing system
The 4 Ps of marketing classify the controllable elements of your marketing
plan. Product, place [distribution] and promotion are all expenses; price
brings in revenue.
MAGGI KISSAN
PRODUCT
Available in different variants: Maggi Ketchup Maggi Hot & Sweet Sauce,
Maggi Masala Chilli Sauce, Maggi Chilli Garlic Sauce, Maggi Tamarind Sauce,
Maggi Tomato Sauce (Without onion & garlic), Maggi Tomato Ketchup (With
onion & garlic), tomato chatpat, Teekha masala, Tomato pudina.
The product is bright red in color.
The thickness is less as compared to Kissan.
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PRODUCT
It is available in different variants: Kissan Ketchup and Kissan Sauce (no
onion no garlic), Kissan Tomchi.
The colour is dark red.
The thickness is more as compared to Maggi Ketchup.
PROMOTION
They promote their product very effectively through television,
They have applied the strategy of brand extension.
They also sponsor various cookery shows to promote alternate usage of
products.
They also use strategy of free product samples to promote it.
Celebrity endorsements. Eg. Javed Jafferi PROMOTION
Less promoted as compared to maggi.
No particular celebrity endorsement.
The utter confusion regarding the long-term strategy for Kissan brand was
visible through the experiments that were conducted on this brand by Hll.
But with a brand which had a tremendous equity during the late nineties
and early 2000, HUL had weird plans. One of the major casualties of MSBanga's Power brand strategy was Kissan. During the early 2000, the brand
Kissan was rebranded as Kissan Annapurna. Kissan Annapurna was marketing
not jams and squashes by Atta, salt and other staple foods. Later Annapurna
and Kissan was splited into two separate brands , one concentrating on staple
foods and other on processed foods. This migration strategy proved to be
very costly for both Kissan and Annapurna brand.
Kissan was synonymous with Jams and Squashes during its initial years.
Kissan Ketchup was a market leader in ketchup segment but these
experiments and myopic strategies pushed the brand behind the focused and
aggressive Maggi.
So all through the period 2001-2005, Kissan was in a sticky wicket. But now
according to reports, the brand mandarins of HUL is now clear about Kissan
as a brand for processed food like Jams , ketchups and like.
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That change is visible in the recent campaign of Kissan which takes a unique
view of Ketchup. Taking the tagline " Aao banaye pakode behtar" translated
to " Making Pakode taste better". In these series of ads, the brand plays a
second fiddle to the main snack. The brand takes the positioning of a "Great
Accompaniment "
PLACE
The distribution network is well spread as it is easily available in all kirana
stores, retail store etc.
PLACE
The distribution network is well spread as it is easily available in all kirana
stores, retail store etc.
PRICE
Its Maggi Rich Tomatoes is priced at Rs 90 (1 kg bottle with 20% free offer)
and Rs 26 (200 gm bottle). PRICE
Its Kissan Ketchup and Kissan Sauce (no onion no garlic) are priced at Rs
91 (1 kg bottle), Rs 49 (500 gm bottle) and Rs 60 (600 gm squeezy pack),
while Kissan Tomchi is priced at Rs 53 (500 gm).
PRODUCT LEVELS: CUSTOMER VALUE HIERARCHY
There are five segments in customer value hierarchy that is:
1. Core benefit
2. Basic product benefit
3. Expected product benefit
4. Augmented product benefit
5. Potential product benefit.
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Now if we classify these heads according to our Brand Maggi
The Core benefit which Maggie provides is its instant recipe and a tag line
which assures that it is FAST TO COOK & GOOD TO EAT.
The Basic product benefit which our product provides to our target market
is a good taste with proper nutrition levels and good health, as one of its
punch line says Taste Bhi Health Bhi.
The Expected product benefit which Maggi provides is a proper and a good
package which is vacuum zed which ensures customers a good quality, fully
packed seasoning tastemaker & affordable prices.
In most of the underdeveloped and developing countries like India
competition takes place in the expected product benefit as Augmented
product benefit stage is still to come.
PRODUCT DIFFERENTIATION
Product differentiation strategy means how a particular product is different
from others on the basis of:
1. Form
2. Features
3. Performance quality
4. Convenience
5. Durability
6. Reliability
7. Style
According to our product, the form shape, size, physical structure of Maggi is
very attractive as it is easy to carry, comes in various packs and sizes
according to customers convenience. For example Maggi Pichkoo ketchup
packs which is a smaller quantity consumption variant.
The various features of Maggi Tomato Ketchup are first of all its perfect taste
according to the Indian touch & spices, its pocketabililty factor, packaging,
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easily transformation of recipe according to the different tastes of consumers,
an ideal preparation recipe at the back of its pack & above all its competitive
prices.
As according to our survey report we found out the performance level of
Maggi Tomato Ketchup was excellent there were various other brands offeredto our target market, but Maggi prevailed as the winner out of them because
of its various factors (taste, less consumption of time in preparation, prices,
pack etc.)
Quality is the main factor on which Maggi Tomato Ketchup emphasizes as it
is Maggis main strength which provides Maggi an edge over its competitors.
As all the products of Maggi are produced identical which fulfills its promise
to its target market.
Maggi products are durable as due to its preparation these products are easyto store, have a long shelf life and can be stored at any given temperatures
which is tested and approved.
Reliability is also one of Maggis strength, as one can always rely on a
Maggie product for a particular taste which it guaranties that is no matter
which pack you are buying you would be provided with the same taste,
aroma & seasoning.
It is an Indian customers psyche that whatever looks good and feels good
would be of good quality so Maggi packs had been designed keeping in mind
the same concept, its promotional schemes, color of the packages and thepictures depicted on the pack appeals to the customers.
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 "Its different".
Brand Image: Young - Teenager, Ever changing, humorous, unpredictable
and "whacky"
Customers were intrigued as to what is different about the brand and was
curious to try the sauce. The ads featuring Javed and Pankaj kapoor was
superb and funny. It was created by JWT. The new campaigns are handled by
Publicis and the baseline has been changed to "Enjoy the Difference".
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In this case even though the new baseline "Enjoy the Difference" was not
very different from the old one.
We 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.
These additions made a point of difference against competitors Tomato
Ketchup. Their main positioning message is Enjoy the difference. With the
successful extension of brand and right positioning, Nestle emerged as
market leader in ketchup segment by 1999.
The Consumer Magazine has published its in-house laboratory test findings
on 15 brands of tomato sauce and ketchup from across the country and 2
unbranded samples from Ahmedabad.
Overall, Maggi Ketchup (79) scored the highest among the national brands
followed by Kissan Sauce (78) and Heinz Ketchup (78).
INNOVATION PROCESS ADOPTED BY MAGGI TO COMPETE THE PRICE
WAR..
the innovation process of maggi.
OUTCOME CONSTRAINTS
Ingredients Cost
Formulations Manufacturer conservatism
Processes Quality
Additives Safety
Packaging Consumer expectations
Marketing Consumer conservatism
Distribution Sociological, Political
Patent Legal
MEANS Innovation DRIVING FORCES
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Recruiting Strategy
Training Quality
R&D Know-how
Technology watch SOURCES Profit
Technology transfer Market environment
Information Know-how Fashions, trends
Knowledge
Creativity
Competition
Academic
Inventors
Suppliers
RESEARCH METHODOLOGY
The present study constitutes the comparison of the 4 Ps of the Maggi of
Nestle India Ltd. and Kissan of Hindustan Unilever Ltd.
This will be done from the secondary data collected from the websites and
the food consultants.
We have established some hypothesis and some inferences on the basis of
the primary data collected.
The steps involved in the research are:
1. SURVEY METHODS
Customer survey for primary data:
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We asked the customers to rank the various attributes on a scale of very
important, important and not very important. To find-out the brand
perception of various brands, paired comparison between them is used.
2. QUESTIONNAIRE DESIGN
In designing the questionnaire we paid particular attention to the content
and wording of the questions. There were some questions which could be
easily framed. The questionnaire was meticulously prepared by identifying
the various variables i.e product, price, place, promotion. The same scale ofyes/no and very important, moderately important and least important was
used to make the respondents comfortable.
SAMPLE COPY OF THE QUESTONNAIRE
OBJECTIVE:- To study the brand preference of Maggi Tomato Ketchup.
1. Name:
..
2. Occupation: .
3. Family Monthly Income:
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Below 25000 25000-50000 50000-1 Lac 1 Lac and above
4. Location:
.
5. Age:
15-25 25-35 35-45 45 and above
6. Family type:
Joint Nuclear
7. Do you consume tomato ketchup?
Yes No
8. Which brand you prefer the most?
Maggi
Kissan
Heinz
Smith & Jones
Tops
Cremica
Other .....
9. Have you ever used Maggi Tomato Ketchup?
Yes No
10. If no , it is because :
Lack of awareness
Lack of availability
You find it expensive
You dont like the product
Others .
11. You came to know about Maggi Tomato Ketchup from :
Newspaper advertisements
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Radio
T.V. advertisements
Word of mouth
Point of sale
Other source..
12. Do you remember any of the T.V. advertisements of Maggi Tomato
Ketchup?
Yes No
13. Does celebrity endorsement prompt you to purchase Maggi Tomato
Ketchup?
Yes No
14. Have you tried new variants of Maggi Tomato Ketchup after viewing the
advertisements?
Yes No
15. What is the level of discounts /offers available with Maggi Tomato
Ketchup?
High Medium Low
16. Which of the offers available influence you the most to purchase Maggi
Tomato Ketchup?
Discounts offer
Buy one get one
Combo packs
Other
17. Is Maggi Tomato Ketchup easily available to you?
Yes No
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18. From where do you usually purchase Maggi Tomato Ketchup?
Nearby store
Retail store
Whole seller
19. Which flavor of Maggi Sauces you like the most?
Tomato Ketchup
Hot & Sweet
Tomato Ketchup (With onion & garlic)
Teekha Masala
Tomato Chatpat
Tomato Pudina
20. What is the size of Tomato Ketchup you usually purchase?
Pichkoo Pack
200 g
600 g
1kg
21. How frequently you purchase Maggi Tomato Ketchup?
Every week
Every forth night
Every month
Occasionally
22. Tick the level of importance according to your preference:
Attribute Very important Moderately important Least important
Taste
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Color
Thickness
23. Any further suggestions: ..
..
.
3. SAMPLING DESIGN
The sampling frame is defined in terms of who the respondents are can
answer the questions that need to be addressed. First we defined our target
population as the people who are involved in the purchase of house hold
items. Then we used random sampling in conducting the survey.
Our sample mainly had females from different age groups.
4. LOCATION FOR THE SURVEY
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Our survey is limited to the Delhi NCR region. Responses were collected form
Noida, Greater Noida, South Delhi, Faridabad.
5. SAMPLE SIZE
While planning the survey we estimated the sample size of 150 respondents.
We have surveyed 130 people who lie within our target population. The
survey consists of more number of females (more than 60% of the total
sample size). Most of the respondents are from the middle and upper middle
class.
6. DATA COLLECTION AND ANALYSIS
The data collected via survey was entered into the excel sheet. The results
were tabulated and analyzed. According to the analysis relevant inferences
has been made related to each question.
Based on the question no. 22 of the questionnaire, a hypothesis was
analyzed. The hypothesis is that the color and the thickness of tomato
ketchup are equally important to the respondents of the survey conducted.
Using sign test this null hypothesis has been rejected and the alternate
hypothesis has been accepted.
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DATA ANALYSIS
1. SOURCE OF INFORMATION ABOUT MAGGI TOMATO KETCHUP
SOURCE NO. OF RESPONDENTS
NEWS PAPER 14
RADIO 3
T.V. AD 97
WORD OF MOUTH 23
POS 15
OTHER 5
INFERENCE:
This graph reveals that T.V. Advertisements are the major source of
information regarding Maggi Tomato Ketchup and so we can also infer that
they have been successful in their promotion strategies involving electronic
media.
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2. REMEMBER ANY TV AD
RESPONSE NO. OF RESPONDENTS
YES 113
NO 16
INFERENCE:
This graph facilitates us in realising that majority of the people are aware of
the brand Maggi as they remember TV ads so it can be inferred that Maggis
promotional team has far been successful in positioning its Tomato Ketchup
in the mind of the people.
3. CELEBRITY ENDORSEMENT PROMOTE BUYING
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RESPONSE NO. OF RESPONDENTS
YES 39
NO 89
INFERENCE:
This graph infers that Celebrity Endorsements does not influence the buying
decision of majority consumers. It also infers that reference group does not
make any impact on consumer mind when we talk about Maggi Tomato
Ketchup.
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4. LEVEL OF DISCOUNT OFFER
HIGH MEDIUM LOW UNAWARE
2 64 57 5
INFERENCE:
This pie-chart reveals that Maggi Tomato Ketchup is positioned in the mind
of the consumer and also its various discount offers to major extent.
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5. MAGGI TOMATO KETCHUP IS PURCHASED FROM
PLACE NO. OF RESPONDENTS
NEAR BY STORE 78
RETAIL STORE 51
OTHER 7
INFERENCE:
This graph highlights the impact of organized retail on unorganized sector,
unorganized still being the dominant, as around 38% of consumer make
purchases of Tomato Ketchup from retail store.
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6. SIZE OF TOMATO KETCHUP USUALLY PURCHASED
SIZE NO OF RESPONDENTS
PICHKOO 6
200g 39
600g 28
1Kg 59
INFERENCE:
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This graph figures out that the larger sized bottle of Maggi Tomato Ketchup
is largely demanded even in the presence of smaller sized bottles and even
the new Pichkoo.
7. FREQUECY OF BUYING MAGGI TOMATO KETCHUP
TIME NO. OF RESPONDENTS
EVERY WEEK 11
EVRY FORTNIGHT 7
EVERY MONTH 63
OCCASIONALLY 44
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INFERENCE:
This graph depicts that the frequency of buying every month of Maggi
Tomato Ketchup is maximum.
8. MOST LIKED FLAVOUR
FLAVOURS NO OF RESPONDENTS
Tomato Ketchup 67
Hot & Sweet 46
Tomato Ketchup (With onion & garlic) 9
THEEKHA MASALA 5
Tomato Chatpat 10
Tomato Pudina 7
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INFERENCE:
This graph shows that the original flavour of Maggi Tomato Ketchup is still
the leader in terms of popularity and Hot & Sweet is slowly catching up with
it. Its new variants and flavour have also been noticed and have started
making in-roads for themselves.
9. CHOICE OF OFFERS
OFFERS NO. OF RESPONDENTS
DISCOUNTS 32
BOGO 47
COMBO 32
OTHERS 12
UNAWARE 8
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INFERENCE:
This graph infers that Buy One Get One Free offer of Maggi TomatoKetchup is the first choice among the consumers. This shows that consumers
are price sensitive too and they prefer buying when there are offers running
around.
10. IMPORTANCE OF THE ATTRIBUTES
ATTRIBUTES VERY IMPORTANT MODERATELY IMP LEAST IMP
TASTE 124 4 0
SOLOCCCR 37 71 20
THICKNESS 67 53 8
COLOR 37 71 20
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INFERENCE:
This graph depicts our analysis of the importance of the various product
attributes like taste, color and thickness in the eye of people. We can very
well observe in the graph that Taste, undoubtedly, is the most important
attribute that people prefer more over any other while selecting a brand.
Moderate importance is given color attribute and thickness also derives its
importance somewhere between moderate to very.
HYPOTHESIS TESTING
OBJECTIVE: to find what is more important between color and thickness of
tomato ketchup among the respondents.
METHOD:
1. USING THE SIGN TEST FOR DATA ANLYSIS:
Table for sign test
S. NO. RESPONDENTS VIEW FOR COLOR RESPONDENTS VIEW FOR
THICKNESS SIGN
1 2 1 1
2 2 1 1
3 3 2 1
4 3 1 2
5 2 1 1
6 2 1 1
7 2 1 1
8 2 1 1
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9 1 3 -2
10 2 1 1
11 2 1 1
12 2 1 1
13 2 1 1
14 3 2 1
15 2 1 1
16 2 1 1
17 2 1 1
18 3 1 2
19 2 1 1
20 3 2 1
21 3 1 2
22 1 2 -1
23 1 2 -1
24 2 1 1
25 2 1 1
26 1 2 -1
27 3 1 2
28 1 2 -1
29 2 3 -1
30 3 1 2
31 2 1 1
32 2 1 1
33 2 1 1
34 2 1 1
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35 2 1 1
36 2 1 1
37 3 2 1
38 1 2 -1
39 2 1 1
40 2 3 -1
41 3 2 1
42 2 1 1
43 3 2 1
44 3 2 1
45 3 2 1
46 3 2 1
47 2 3 -1
48 2 3 -1
49 2 1 1
50 3 1 2
51 1 2 -1
52 2 1 1
53 3 2 1
54 3 1 2
2. NO OF POSITIVE SIGN= 43
NO OF NEGATIVE SIGN=11
TOTAL SAMPLE SIZE=54
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(In this sample size we have ignored the respondents who have given the
equal importance to
color and taste for tomato ketchup)
3. NULL HYPOTHESIS,H(0): P=0.5
(There is no difference between the importance level of color and thickness
for tomato ketchup)
4. ALTERNATE HYPOTHESIS,H(1): P
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, Standard Error= 0.068
6. Z (test) = 4.264
7. Significance level, = 0.05
Z (critical) = 1.96
INTERPRETING THE RESULTS:
Since the Z (test) is greater than Z(critical), we reject the null hypothesis
that the importance of color and taste for tomato ketchup is same.
Therefore, we accept the alternate hypothesis that is the importance of color
is less than thickness among the respondents for tomato ketchup.
The data collected from the survey clearly shows that taste is the most
important factor while purchasing the tomato ketchup.
The above analysis tells that thickness of tomato ketchup is the second most
important attribute for the respondents after taste. Maggi is the leader in theketchup industry and known for its better taste and varieties. Maggi should
work towards the thickness of its tomato ketchup.
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RECOMMENDATIONS
PRODUCT
The ketchup is thinner as compared to Kissan. According to our inference
thickness is one important criteria which affects buying behaviour. Hence
company should work on the thickness of the ketchup.
Company should work on taste also. According to the data collected people
prefer the taste of Kissan.
They should maintain quality of the product.
PLACE
Most of the people buy Maggi Ketchup from local kirana stores. But
organized sector is booming and according to our survey 38% people buy
Maggi Ketchup from Retail Stores. Hence they should increase the visibility of
the product in Retail Stores and hence effective distribution network.
PROMOTION
According to the data collected it is recorded that the level of discounts
offered is low. Hence company should try to provide more discounts on the
product. Buy One Get One Free is the most preferred promotional offer.
The frequency of TV advertisements has decreased. They should try to
come out with more innovative advertisement to catch the attention of the
customers.
They should promote there new product PICHKOO as people are less
aware of this new size. It could increase the market share tremendously as itis very convenient to carry.
PRICE
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It should be more competitively priced. Customers perceive it to be highly
priced.
LIMITATIONS
1. SAMPLING ERROR:
The sample of our survey is confined to the respondents from the middle
class and the upper middle class.
The sample size of 130 is not the true representative of our sampling frame
and result in skewed responses.
The locations under taken for the survey is also a constrain because the
result of the survey is limited to some regions and cannot be used for furtheranalysis and implementation.
2. RESPONSE ERRORS:
These errors arise when the respondents give inaccurate or incomplete
answers. A major problem is faced in the survey involved the comparative
ratings of various attributes for tomato ketchup. Many of the respondents
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were not very willing to mark
their income group.
3. CLOSED ENDED QUESTIONS:
All the questions in the questionnaire were closed-ended to avoid any
confusion from the respondents end. But a drawback of this approach is that
there was some biasness in capturing the responses of the respondents. The
reasons for such inaccuracy could be because of unfamiliarity, boredom,
faulty recall and the question format.
4. RECORDING ERROR:
This type of error arise dues to errors in hearing, interpreting, and recording
the answers given by the respondents. For example, a respondent indicates a
moderate response for the attributes of the tomato ketchup, but the
interviewer misinterprets that to a positive response.
5. DATA ANALYSIS ERROR:
These errors occur while raw data from questionnaire are transformed into
research findings. For example, if the outliers are not filtered from the data
during the statistical procedure, result in incorrect interpretation andfindings.
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