tomato ketchup.doc

7/28/2019 tomato ketchup.doc

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EXECUTIVE SUMMARY

In 1991 we opened our country to foreign brands. As per this

liberalization policy many a foreign players ventured into ourcountry 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. Thuscompetition 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 mixwhich 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 to various 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


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product.

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 betweenthe 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 opened in 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


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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 thebrand 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 TomatoKetchup taking into consideration the 4 Ps of the marketing

mix.

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.


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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 andimplemented 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 witha 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. We also

determined the acceptability and adaptability towards


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introduction of new variants.

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 food production,

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 marketedworldwide 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.


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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 same product category. This soup was

initially test marketed in 1974 in Kerala. The response was

not encouraging. Having then realized that the dietary habitsof 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 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


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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 severalvarieties of Tomato Ketchup there was a growth in the

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 food products 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


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the food provider taste, aroma and also contains iodised salt.

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 thebrand 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 the

consumer 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


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MARKETING MIX

Marketing decisions generally fall into the following four

controllable categories:

Product

Price

Place (distribution)

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". The

ingredients 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


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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 usfocus on the elements of a good marketing plan that we

can't control but must be aware of 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

Product variables

Quality

Models and sizes

Packaging

Brands

Service

Promotion variables

Advertising

Sales promotion


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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] andpromotion 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.

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.


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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 JafferiPROMOTION

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 MS Banga'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.


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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 foodlike Jams , ketchups and like.

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 KissanTomchi is priced at Rs 53 (500 gm).


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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.

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 likeIndia competition takes place in the expected product

benefit as Augmented product benefit stage is still to come.

PRODUCT DIFFERENTIATION


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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, 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 theperformance level of Maggi Tomato Ketchup was excellent

there were various other brands offered to 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.)


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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 easy to 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 the pictures

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


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and the baseline has been changed to "Enjoy the

Difference".

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 samplesfrom 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


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Ingredients Cost

Formulations Manufacturer conservatism

Processes Quality

Additives Safety

Packaging Consumer expectations

Marketing Consumer conservatism

Distribution Sociological, Political

Patent Legal

MEANS Innovation DRIVING FORCES

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


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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:

We asked the customers to rank the various attributes on ascale 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


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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 of yes/no and very important, moderately important

and least important was used to make the respondentscomfortable.

SAMPLE COPY OF THE QUESTONNAIRE

OBJECTIVE:- To study the brand preference of Maggi Tomato

Ketchup.

1. Name:

..

2. Occupation:

.

3. Family Monthly Income:

Below 25000 25000-50000 50000-1 Lac 1 Lac and above

4. Location:


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.

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


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You dont like the product

Others

.11. You came to know about Maggi Tomato Ketchup from :

Newspaper advertisements

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


Yes No

14. Have you tried new variants of Maggi Tomato Ketchup

after viewing the advertisements?

Yes No


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15. What is the level of discounts /offers available with


High Medium Low

16. Which of the offers available influence you the most topurchase Maggi Tomato Ketchup?

Discounts offer

Buy one get one

Combo packs

Other

17. Is Maggi Tomato Ketchup easily available to you?

Yes No

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 & SweetTomato Ketchup (With onion & garlic)

Teekha Masala

Tomato Chatpat


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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 weekEvery forth night

Every month

Occasionally

22. Tick the level of importance according to your

preference:

Attribute Very important Moderately important Least

important

Taste

Color


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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 thesurvey.

Our sample mainly had females from different age groups.


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4. LOCATION FOR THE SURVEY

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 liewithin 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 excelsheet. 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


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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.

2. REMEMBER ANY TV AD

RESPONSE NO. OF RESPONDENTS

YES 113

NO 16


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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

RESPONSE NO. OF RESPONDENTS

YES 39

NO 89


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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.

4. LEVEL OF DISCOUNT OFFER


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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

200g39

600g28

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

OCCASIONALLY44


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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 andflavour 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


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OTHERS 12

UNAWARE8

INFERENCE:

This graph infers that Buy One Get One Free offer of Maggi

Tomato Ketchup 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


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TASTE 124 4 0

SOLOCCCR 37 71 20

THICKNESS 67 53 8

COLOR 37 71 20

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.


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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

9 1 3 -2

10 2 1 1

11 2 1 1

12 2 1 113 2 1 1

14 3 2 1

15 2 1 1


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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 -130 3 1 2

31 2 1 1

32 2 1 1

33 2 1 1

34 2 1 1

35 2 1 1

36 2 1 1

37 3 2 1

38 1 2 -1


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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 1 153 3 2 1

54 3 1 2

2. NO OF POSITIVE SIGN= 43

NO OF NEGATIVE SIGN=11

TOTAL SAMPLE SIZE=54

(In this sample size we have ignored the respondents who


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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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n= 54

p= 0.79

q= 0.21

, 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 tomatoketchup 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 the ketchup industry and

known for its better taste and varieties. Maggi should work


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towards the thickness of its tomato ketchup.

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


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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 innovativeadvertisement 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 it is very convenient to carry.

PRICE

It should be more competitively priced. Customers

perceive it to be highly priced.


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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 further analysis 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 were not very

willing to mark

their income group.

3. CLOSED ENDED QUESTIONS:

All the questions in the questionnaire were closed-ended to


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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 and findings.

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