Advertisement Management Advertising Appeal of Maggi Over the Past Years

SUMMER PROJECT REPORT

ON ADVERTISEMENT MANAGEMENT ADVERTISING APPEAL OF MAGGI OVER THE PAST YEARS

Submitted by Abhimanyu Singh Poonam Chaudhary Rashi Srivastava Vaishali Ojha Rinki Srivastava Chetan Deepak Under the Guidance of Prof. Tarun Gangwar in partial fulfilment for the award of the degree of MASTER OF BUSINESS ADMNISTRATION

INDIAN INSTITUTE OF PLANNING AND MANAGEMENT LUCKNOW

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ACKNOWLEDGEMENT
A large number of individuals have contributed directly and indirectly in this project. I am thankful to all of them for their help and encouragement. MY sincere gratitude to PROF. TARUN GANGWAR (FACULTY),and all the M.B.A. faculty of IIPM, LUCKNOW for their support in completion of this project.

I express my sincere thanks to my parents & friends for their constant support and suggestions to accomplish my goals.

Last but not the least I thank God for his love and grace that enabled me to complete this project.

Thank You.

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Table of Content
ADVERTISING INDUSTRY SNAPSHOT NATURE OF THE INDUSTRY MEDIA IN-FILM ADVERTISING WORK ENVIRONMENT PERSONAL CHARACTERISTICS EMPLOYMENT AVENUES PUBLIC SERVICE ADVERTISING ADVERTISING HISTORY OF AD AGENCY ADVERTISING PROCESS TYPICAL WORK FLOW IN AGENCY TYPES OF ADVERTISING AGENCIES THE FUNCTIONS OF AN ADVERTISING : THE BENEFITS OF USING AN ADVERTISING ADVERTISING 'S ROLE SERVICES OFFERED BY AD AGENCY DEPARTMENTS & PERSONNEL ACCOUNT SERVICES / ACCOUNT MANAGEMENT CREATIVE DEPARTMENT OGILVY & MATHER INDIA OVERVIEW NETWORK KEY PEOPLE SERVICES OFFERED MAJOR CLIENTS INDIAN AD LEGENDS

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LARGE VS. SMALL AGENCIES WORKFORCE FOR AD AGENCY STUDY / TRAINING & ADVANCEMENT COURSES / INSTITUTIONS FUTURE OUTLOOK MYTH: AN AGENCY ALWAYS HELPS TO SELL A PRODUCT CASE STUDY ADVERTISING CREATIVE CONCLUSION BIBLIOGRAPHY & WEBLIOGRAPY

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Advertising
Advertising, generally speaking, is the promotion of goods, services, companies and ideas, usually performed by an identified sponsor. Marketers see advertising as part of an overall promotional strategy. Other components of the promotional mix include publicity, public relations, personal selling, and sales promotion. The Association of Advertising Agencies of America (AAAA) defines advertising as ―An independent business organization composed of creative and business people who develop, prepare and place advertising media for sellers seeking to find customers for their goods and services.‖ Advertising involves the process where in a massage is designed so as to promote a product, a thought, an idea or even a service. The concept of advertising has assumed a dynamic form with the use of the various mediums of communication. From the newspaper, magazines, posters, neon and fluorescent signboards, billboards to the commercial on TV, laser shows to inflated high-rise figures and objects, advertising has come a long way. The work is formidable as it spearheads a process intended to attract, modify, change and influences public opinion. From the local business to multinational firm and all need to advertise. While politicians, social organizations, government special groups need to advertise their motto, national airlines, auto mobile manufactures, food and consumer goods manufacturers have to reach the consumer. Specialist products and services are often advertised through trade magazines and exhibitions. Lately mail-shots, handbill circulation, special offers have become very popular. There are still other ways of advertising. There are window displays, display on telephone directories, transit sign on buses, lamp posters, banners, etc. Advertising through the electronic media has been perhaps the most popular medium. Advertising, as an effective medium, uses a variety of techniques to create effective advertisements. A basic appeal is at the heart of advertising. Slogans and product characters are created to catch the attention of the viewers. Most winning advertisements would encompass factual information with emotional appeal. The advertising industry has three major sectors:

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  

Business or organization which wishes to advertise, Media which provides the medium for advertising and Ad-agency which creates the ad to suit the need of the firm.

An advertising or ad agency is a service business dedicated to creating, planning and handling advertising (and sometimes other forms of promotion) for their clients. An ad agency is independent from the client and provides an outside point of view to the effort of selling the client's products or services. An agency can also handle overall marketing and branding strategies and sales promotions for its clients. Typical ad agency clients include businesses and corporations, non-profit organizations and government agencies. Agencies may be hired to produce single ads or, more commonly, ongoing series of related ads, called an advertising campaign.

Ad agencies vary in the size and turnover. Nevertheless the process of creating an ad remains the same. The annual expenditure on the advertising has been to the tune of Rs 8000 crores and the figure could be higher. USA has projected media spending on advertising on the net to approximately $7700 by the turn of the century. The scope for advertising professionals certainly shows an upward trend.

Industry Snapshot
According the Advertising Age's 2002 Agency Report, the world's six largest advertising agencies accounted for over 65 percent of $39.28 billion spent on advertising worldwide in 2001. But the advertising industry has suffered during the first years of the 2000s. The economy decline prior to and exacerbated by the terrorist attacks of September 11, 2001 has been sustained by the ongoing conflict with Iraq. As an indicator of the softened demand for advertising services, advertising employment fell to just over 180,000 in December 2002, down from an average employment of 194,400 in 2001 and 182,400 in 2002, representing the largest decline since 1991. Advertising agencies are primarily responsible for two functions. The first is the production of advertising materials in the form of written copy, art, graphics, audio, and video. The second is the strategic placement of the finished creative

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product in various media outlets, such as periodicals, newspapers, radio, and television. Advertising agencies can be found throughout the United States, with the greatest percentage located in large cities. Many have headquarters in New York and field offices in Chicago, Los Angeles, San Francisco, Atlanta, Detroit, and other major areas of commerce in order to be close to clients. Although the larger agencies are more frequently mentioned in the media and in trade publications, the industry is actually predominately comprised of smaller agencies, many with only one or two principals. Industry observers credit lower overhead, diversified services, willingness to accommodate change, and an entrepreneurial attitude for the success of smaller, boutique agencies. As many clients have begun to focus on a variety of forms of marketing communications, advertising agencies have had to look beyond conventional mediabased advertising. Advertising budgets reflect this shift, with additional dollars being earmarked for point-of-sale promotions, public relations, and a major entry into the media mix—the Internet. Changing demographics and a savvy American consumer were the driving forces behind these alternative forms of marketing communications. Some industry leaders have projected that advertising agencies will need to augment their primary line of work and change their longstanding compensation system based on commissions. Realizing the need for "integrated marketing services," many agencies have responded by offering public relations, direct mail, promotional, and Internet services.

Nature of the Industry
Firms in the advertising and public relations services industry prepare advertisements for other companies and organizations and design campaigns to promote the interests and image of their clients. This industry also includes media representatives—firms that sell advertising space for publications, radio, television, and the Internet; display advertisers—businesses engaged in creating and designing public display ads for use in shopping malls, on billboards, or in similar media; and direct mail advertisers. A firm that purchases advertising time (or space) from media

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outlets, thereafter reselling it to advertising agencies or individual companies directly, is considered a media buying agency. Divisions of companies that produce and place their own advertising are not considered part of this industry. Most advertising firms specialize in a particular market niche. Some companies produce and solicit outdoor advertising, such as billboards and electric displays. Others place ads in buses, subways, taxis, airports, and bus terminals. A small number of firms produce aerial advertising, while others distribute circulars, handbills, and free samples. Groups within agencies have been created to serve their clients‘ electronic advertising needs on the Internet. Online advertisements link users to a company‘s or product‘s Web site, where information such as new product announcements, contests, and product catalogs appears, and from which purchases may be made. Some firms are not involved in the creation of ads at all; instead, they sell advertising time or space on radio and television stations or in publications. Because these firms do not produce advertising, their staffs are mostly sales workers. Companies often look to advertising as a way of boosting sales by increasing the public‘s exposure to a product or service. Most companies do not have the staff with the necessary skills or experience to create effective advertisements; furthermore, many advertising campaigns are temporary, so employers would have difficulty maintaining their own advertising staff. Instead, companies commonly solicit bids from ad agencies to develop advertising for them. Next, ad agencies offering their services to the company often make presentations. After winning an account, various departments within an agency—such as creative, production, media, and research—work together to meet the client‘s goal of increasing sales. Widespread public relations services firms can influence how businesses, governments, and institutions make decisions. Often working behind the scenes, these firms have a variety of functions. In general, firms in public relations services advise and implement public exposure strategies. Firms in public relations services offer one or more resources that clients cannot provide themselves. Usually this resource is expertise in the form of knowledge, experience, special skills, or creativity; but sometimes the resource is time or personnel that the client cannot spare. Clients of public relations firms include all types of businesses, institutions, trades, and public

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interest groups, and even high-profile individuals. Clients are large and small forprofit firms in the private sector; State, local, or Federal Governments; hospitals, universities, unions, and trade groups; and foreign governments or businesses. In an effort to attract and maintain clients, advertising and public relations services agencies are diversifying their services, offering advertising as well as public relations, sales, marketing, and interactive media services. Advertising and public relations service firms have found that highly creative work is particularly suitable for their services, resulting in a better product and increasing their clients' profitability.

Media
Commercial advertising media can include wall paintings, billboards , street furniture components, printed flyers, radio, cinema and television ads, web banners, web popups, skywriting, bus stop benches, magazines, newspapers, town criers, sides of buses, taxicab doors and roof mounts, musical stage shows, subway platforms and trains, elastic bands on disposable diapers, stickers on apples in supermarkets, the opening section of streaming audio and video, and the backs of event tickets and supermarket receipts. Any place an "identified" sponsor pays to deliver their message through a medium is advertising. Covert advertising embedded in other entertainment media is known as product placement. A more recent version of this is advertising in film, by having a main character use an item or other of a definite brand - an example is in the movie Minority Report, where Tom Cruise's character Tom Anderton owns a computer with the Nokia logo clearly written in the top corner, or his watch engraved with the Bulgari logo. The TV commercial is generally considered the most effective mass-market advertising format and this is reflected by the high prices TV networks charge for commercial airtime during popular TV events. Virtual advertisements may be inserted into regular television programming through computer graphics. It is typically inserted into otherwise blank backdrops or used to replace local billboards that are not relevant to the remote broadcast audience. More controversially, virtual billboards may be inserted into the background where none existing in real-life. Virtual product placement is also possible. Increasingly, 9

other mediums such as those discussed below are overtaking television due to a shift towards consumer's usage of the Internet. Advertising on the World Wide Web is a recent phenomenon. Prices of Webbased advertising space are dependent on the "relevance" of the surrounding web content and the traffic that the website receives. E-mail advertising is another recent phenomenon. Unsolicited bulk E-mail advertising is known as "spam".

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Profile of major advertising mediums
MEDIUM ADVANTAGES LIMITATIONS Short life; poor reproduction quality; small pass along audience. High absolute cost, high clutter, fleeting exposure, less audience selectivity Relatively high cost, junk mail image.

Newspapers Flexibility; timeliness; good local market coverage; broad acceptance; high believability. Television Combines sight, sound and motion; appealing to the senses; high attention; high reach. Direct mail Audience selectivity, flexibility, no ad competition within the same medium, personalization. Radio Mass use, high geographical and demographic selectivity; low cost.

Audio presentation only; lower attention than television; non standardized rate structure; fleeting exposure.

Magazines

High geographical and demographic selectivity; credibility and prestige; high quality reproduction, long life; good pass-along readership.

Long ad purchase lead time; some waste circulation; no guarantee of position.

Outdoor

Flexibility; high repeat exposure; low cost; low competition.

Limited audience selectivity; creative limitation. Overproduction could lead to run away costs.

Brouchers

Flexibility; full control; can dramatize message.

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In-film advertising
In-film advertising used to mean a couple of product billboards placed behind the hero's car, Till Taal came along. That's the film that put Coke — and product placements — firmly in the plot.

In-film advertising has only gathered more fans since. It's not just the colas, brands like Hero Honda, Bru, and Fair & Lovely have got into the act. It has become a well-thought out and legitimate part of a brand's marketing plan, and as the film industry gets more corporatised, it's likely to get more popular.

Public service advertising

The same advertising techniques used to promote commercial goods and services can be used to inform, educate and motivate the public about non-commercial issues, such as AIDS, political ideology, energy conservation, religious recruitment, and deforestation. The Government of India has for a long time relied considerably on the talents of the Advertising and the Advertising Agencies Association of India for social causes. Family Planning is the most successful campaign for a social cause by any advertising . Advertising, in its non-commercial guise, is a powerful educational tool capable of reaching and motivating large audiences.

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Work Environment
Ad agencies are based within office settings. Accounts Executives, Account Planers, Media Executives, Art Directors and Copywriters spend most of their working time in agency office. Account Executives have to travel extensively, visiting clients and suppliers. While other staff, travel occasionally to attend meetings with clients, or visit locations during film production. Ad agencies are very busy places and often work is on till late hours. In 2004, workers in the industry averaged 33.8 hours per week, a little higher than the national average of 33.7. Most employees in advertising and public relations services work in comfortable offices operating in a teamwork environment; however, long hours, including evenings and weekends, are common. There are fewer opportunities for part-time work than in many other industries; in 2004, 14 percent of advertising and public relations employees worked part time, compared with 16 percent of all workers. Work in advertising and public relations is fast-paced and exciting, but it also can be stressful. Being creative on a tight schedule can be emotionally draining. Some workers, such as lobbyists, consultants, and public relations writers, frequently must meet deadlines and consequently may work long hours at times. Workers, whose services are billed hourly, such as advertising consultants and public relations specialists, are often under pressure to manage their time carefully. In addition, frequent meetings with clients and media representatives may involve substantial travel. Most firms encourage employees to attend employer-paid time-management classes, which help reduce the stress sometimes associated with working under strict time constraints. Also, with today‘s hectic lifestyle, many firms in this industry offer or provide health facilities or clubs to help employees maintain good health.

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Advertising
Getting the best out of advertising is a highly skilled job. It requires the inputs of experts in many different fields like writers, artists, photographers, designers, television production crews and many others. Even the biggest advertisers cannot afford to employ all these experts. Almost all advertising is therefore arranged through an advertising which provides the necessary skill to turn the message into a memorable and effective advertisement. Advertising has not only come to reflect pop culture but has also become an important element of economic growth. Today, every person connected with the Indian economy or public should be fully aware what advertising really is and why effective advertising campaigns can be performed by full-service advertising agencies. Advertising is one of the most important components of advertising industry. It has played a significant role in the development of modern advertising. The advertising has evolved to provide the specialized knowledge, skills and experience needed to produce effective advertising campaigns. It provides a quality range of service greater than any single advertiser could afford or would need to employ. An advertising is a firm that specializes in the creation, design and placement of advertisements, and in the planning and execution of promotional campaigns for products and services of their clients. The glamour, the unlimited expense accounts, and the exhilarating lifestyle all these popular portraits of life in the big-time advertising are misleading.

Advertising is demanding, challenging, hard work. It is also interesting and fulfilling. Advertising requires a mix of personal abilities, considerable business skills, and an ability to work under pressure to meet deadlines. Compared to larger industries, there are never many entry-level positions open in advertising agencies (dozens rather than hundreds). And competition is stiff. The industry, however, is constantly on the look out for skilled, bright, articulate, creative and personable men and women with a wellrounded education and a good business sense.

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Advertising Process
When preparing your search proposal, you should take into account that the ―lead-in‖ time needed to place an ad can vary anywhere from days to months depending on the publication. You should plan to have your ad approved and an estimate of the cost done at least one month prior to the date when you want the ad to be published. The advertising process for professional staff and faculty positions involves five basic steps: 1. Writing an Ad 2. Getting Approval for the Text of the Ad 3. Estimating the Cost of the Ad 4. Placing Ads & Posting Announcements 5. Paying for Ads

Typical work flow in stage STAGE
 Briefing Stage    Creation Stage     Production Stage     Post Production Stage   

WORK PERFORMED AT STAGE
Briefing from the client Internal briefing to the creative and media Any research briefing if required Ad campaign and media plan development Internal review and finalization Presentation to client and approvals Any pre-testing if required Budget and estimate approvals Production of film, press ads, collaterals Media Scheduling and media booking All release approvals for creative & media Material dispatch to media Media release monitoring Any post-testing if required Billing and collection

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Types of advertising agencies
Ad agencies come in all sizes, from small one- or two-person shops to large multi-national, multi-agency conglomerates such as Omnicom Group, WPP Group, Interpublic Group of Companies and Havas. Some agencies specialize in particular types of advertising, such as print ads or television commercials. Other agencies, especially larger ones, produce work for many types of media. Lately, Search Engine Marketing (SEM) and Search Engine Optimization (SEO) firms have been classified by some as 'agencies' due to the fact that they are creating media and implementing media purchases of text based (or image based in some instances of search marketing) ads. This relatively young industry has been slow to adopt the term 'agency' however with the creation of ads (either text or image) and media purchases they do qualify technically as an 'advertising ' as well as recent studies suggest that both SEO and SEM are set to outpace magazine spending in the next 3-5 years. Not all advertising is created by agencies. Companies that create and plan their own advertising are said to do their work in house. Today selection of ad-agency is very difficult. The advertiser should make list of all possible agencies that can serve his purpose and the agency best qualified to provide required and effective services are selected. Some advertiser may select more than one advertising effectively the various product lines. Following are major types of advertising agencies that are currently serving the advertising industry. to handle

Full Service Agencies A full service ad agency is one that provides a range of marketing services. A full services agency provides services that are directly related to advertising such as copywriting, artwork, production of ads, media planning etc. It also provides such services in respect of pricing, distribution, packaging, product design etc.

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Modular agencies A modular agency is a full service agency that sells its services on a piece meal basis. Thus an advertiser may commission an agency‘s creative department to develop an ad campaign while obtaining other agency services elsewhere. Or, an advertiser may hire an agencies media department to plan and execute a program for advertising that another agency has developed. Fees are charged for actual work undertaken.

In House agencies Those companies, which prefer to have closer control over advertising, have their own in-house agency. This type is owned completely by the advertiser. It performs almost all functions that an outside advertising would perform and that‘s why some people refer to it as full-service advertising department of the advertiser. However, the difference between an in-house agency and an advertising department is that the in-house agency can undertake to serve several other clients, if the owner so desires, but an advertising department solely undertakes that work of its owner and not of outside clients. Secondly an advertising department may not be equipped the personnel and facilities, which an in-house agency would posses. In-house agency not only provides control over advertising schedule and costs, but also offers convenience for its owner, because it is just available in the same building as that of the head office of advertiser. Such in-house agency also benefits the owner as it can bring revenue through agency commission that are offered by the media and by way of fees that are collected from outside parties for undertaking their advertising work. Such revenue increases the funds and profits of the company. There is another version of in-house agency whereby advertiser handles the total agency functions by buying service unit to buy time, space and place the ads. Such an In-house agency is an administrative center (under the direction of an advertising director) that gathers and directs varying outside for its operation.

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Creative Boutiques These are shop agencies that provides only creative functions and not fullservice. The specialized creative functions include copy writing, artwork and production of ads, they charge a fee or percentage of full service agencies, and as such most of them convert into a full service agency or merge with other agencies to provide a wide range of services.

Mega agencies A significant of 1980‘s is the development of mega agency. Agencies worldwide merge with each other serve their clients in much better way. It was in 1986, Saachi & Saachi, a London based agency who started the movement and at present it is the third largest agency network in the world.

The Specialists Agency There are some agencies who undertake advertising work only in certain areas. there are agencies that specialize only in financial services or only in publicity or only in point-of-purchase material etc. for instance Soubhagya advertising concentrate on specialized in financial advertising.

The functions of an advertising :
   To accelerate economic growth and create public awareness To provide a total, professional, experienced service which is very personal in its nature To take the advertiser's message and convert it into an effective and memorable communication

The Benefits of Using an Advertising
    Added Expertise Media Knowledge and Unbiased Advice Easier Administration Media Buying

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     

Quality Control Information Fending off the media And when things go wrong Cost Saving Time Saving

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Advertising 's Role
Suppose you are a company with a product. It may be a totally new product. As a company with a product or service to sell, designing and making that item is only part of the battle. People are not going to beat a path to your door. You have to seek a channel of communication. Ad agency need to consider, for example:           For whom is the product or service designed? Who would use it? Who is the "target group"? What's special about the product? In what way is it distinct? Unique? Different? What's its "position" in relation to other similar products? What do you want to convey to the public about your product? How should your company contact the public? What medium should it use? Radio? TV? Newspapers? Magazines? Billboards? Bus/subway ads? Direct mail? etc. How extensive a region should your company try to cover? How often?

Communication and marketing decisions involve specialized expertise. Many companies that design and produce products or offer services lack these specific capabilities. This is where advertising agencies fit in. Advertising agencies exist to help companies to communicate with the public, Market the company's product. Company with a product or service Ad Agency Media Public

The process of advertising involves considerable specialized knowledge and expertise    about people - their interests, preferences, needs, wants, lifestyles, expectations about media - their reach, their effectiveness, their specific appeal about the company and its product – and about competing companies and their products

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Services offered by ad agency
Total Advertising Services Strategic planning, creative development and media services for advertising, particularly in television, newspapers, magazines and radio; providing the best creative designed to capture the imagination of consumers Marketing Services Provision of a number of advertising related services, including sales promotion, market research, PR and event marketing. e-Solution Services e-solution services, including system integration services, e-business consulting and customer relationship management (CRM), Search Engine Marketing (SEM) and Search Engine Optimization (SEO) and e-promotions using the Internet and mobile.

Content Business Sales of sponsorship, broadcasting and other rights, and the production and marketing of such media / content as sporting events, films, TV programs, animated content, music and other forms of entertainment.

Integrated Media Services Bringing value to both clients and media-related companies by offering a wide range of media solution services Sales Promotion Providing comprehensive sales promotion planning designed to complement mass media and other activities Event Marketing Assisting clients by providing dynamic vehicles for their messages in the form of on-the-spot interactive communications Integrated Branding Services Assuring clients the highest quality of branding services for their communication needs

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Impact of technology on advertising
In the mid 1980s, the arrival of desktop publishing and the introduction of software applications introduced a generation of designers to computer image manipulation and 3D image creation that had previously been unachievable. Computer graphic design enabled designers to instantly see the effects of layout or typography changes without using any ink in the process. Computers are now considered to be an indispensable tool used in the advertising and graphic design industry. Computers and software applications are generally seen, by creative professionals, as more effective production tools than the traditional methods. Computers may or may not enhance the creative process of graphic design, depending on which process best stimulates the creativity of the designer. Rapid production from the computer allows many designers to explore multiple ideas quickly with more detail than what could be achieved by traditional hand-rendering or paste-up on paper, moving the designer through the creative process more quickly. New ideas may come in the form of exploring software features that would not have been considered without the software. However, some professional designers may explore ideas on paper to avoid creating within the limits of the computer configuration, enabling them to think outside the box; the box being the computer. Some creative graphic design ideas are initiated and developed to near completion in the mind, before either traditional methods or the computer is used. A graphic designer may also use sketches to explore multiple or complex ideas quickly without the potential distractions of technical difficulties from software malfunctions or software learning. Hand rendered comps may be used to get approval of a graphic design idea before investing what would be too much time to produce on a computer if rejected. Thumbnail sketches or rough drafts on paper may then be used to rapidly refine and produce the idea on the computer in a hybrid process. The traditional-design/computer-production hybrid process may be used for freeing ones creativity in page layout or image development as well. Traditional graphic designers may employ computer-savvy production artists to produce their ideas from sketches, without needing to learn the computer skills themselves.

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The use of computers in design is sometimes referred to as CAD (computer aided design), the same abbreviation of computer aided drafting and a homophone of the acronym Computer Aided Design & Drafting (CADD) which is the use of computers in engineering designs for mechanical products and associated with computer aided production of these products known as CAM (Computer Aided Manufacturing). This makes no distinction between graphic design and technical drawing. Due to this common misunderstanding, CAD is rarely used to describe computer use in graphic design. The more common term used to describe computer use in graphic design is DTP (desktop publishing). However, DTP is often oversimplified to the narrower scope of graphic design known as page layout and publishing technology.

Common software used by ad agency
Most common SOFTWARES used by advertising are listed below.         

Adobe Photoshop QuarkXPress Autodesk Maya Abode Flash Corel DRAW Computer-aided design (CAD) Adobe Premiere Adobe Illustrator Adobe After Effects

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HISTORY OF NESTLE
The history of Nestlé began in Switzerland in 1867 when Henri Nestlé, the pharmacist, launched his product Farine Lactée Nestlé, a nutritious gruel for children. Henri used his surname, which means ‗little nest‘, in both the company name and the logotype. The nest, which symbolizes security, family and nourishment, still plays a central role in Nestlé‘sprofile. Since it began over 130 years ago, Nestlé‘s success with product innovations and business acquisitions has turned it into the largest Food Company in the world. As the years have passed, the Nestlé family has grown to include chocolates, soups, coffee, cereals, frozen products, yogurts, mineral water and other food products. Beginning in the 70s, Nestlé has continued to expand its product portfolio to include pet foods, pharmaceutical products and cosmetics too.

Today, Nestlé markets a great number of products, all with one thing in common: The high quality for which Nestlé has become renowned throughout the world. 1867- Henri Nestlé founded the company in Vevey, Switzerland. 1898-Nestlé purchases its first factory outside of Switzerland – Viking Melk factory in Norway. 1905- Nestlé merges with Anglo-Swiss Condensed Milk Company. 1929- Nestlé merges with Peter-Cailler-Kohler Chocolates Suisse‘s S.A. 1938- Nestlé launches Nescafe – the world‘s first instant coffee. 1947- Nestlé merges with Alimentana S.A. with the brand Maggi. 1962- Nestlé purchases Findus.

1974- Nestlé becomes a significant shareholder in the Cosmetics Company L‘Oreal. 1977- Nestlé purchases Alcon, manufacturer of eye care products and kits.

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1985- Nestlé purchases the Food Company Carnation. 1988- Nestlé purchases the confectionary company Rowntree Mackintosh and the pasta company Buitoni-Perugina. 1992- Nestlé purchases the mineral water Company Perrier. 1998- Nestlé purchases Spillers pet foods business. 1999- Nestlé acquires Preparadosy Congelados Alimenticios LA, La Cocinera, which produces ready-made frozen meals, pizzas, snacks and refrigerated products under the La Cocinera and Fricongel brand names. 2000- Nestlé sells the Findus brand in all countries except for Italy and Switzerland. 2001- Nestlé merges with Ralston Purina, the premier pet food Company in North America, and with unique expertise in the dry dog food area.

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NESTLE IN INDIA: Good Food, Good Life Since The Turn of The Century NESTLE INDIA LIMITED
Nestle India Limited is a 51% subsidiary of Nestle S.A., Switzerland – a Company that can trace its origins back to 1866. The original business of the Company was based on milk and dietetic foods for children. Numerous other food products have since been added to the line: Chocolate, instant beverages (the NESCAFE process was developed in 1938) culinary, refrigerated and frozen products, ice cream, mineral water and pet foods to make Nestle the World Food Company of the 20th century Nestle has been international from the very beginning with 509 factories today in 83 countries and certain global brands such as NESCAFE available in over a 100 countries. Nestle is the most multinational of all multinationals in every positive sense- only 2% of its turnover comes from the local Swiss Company. The Company is present in India with the following main brands: MILKMAID, EVERYDAY, CERELAC, NESTUM, LACTOGEN, NESTOGEN, MAGGI, NESCAFE, NESCAFE SUNRISE, NESTEA, MILO, KITKAT, NESTLE CLASSIC, MILKY BAR, CURNCH, ALLEN'S, POLO, NESTLE PURE MILK. Local Sourcing Of Raw Materials: Nestle Factories in India Nestle has been associated with India since the beginning of the century - importing and trading In Condensed Milk and Infant Food. Manufacturing in India began in 1962, with the setting up of its First factory at Moga, Punjab. Commissioned in 1992, the Samalkha Factory manufactures weaning cereals, culinary products and milk products and water. Nestle does not own agricultural farms of in India, in line with its international policy aimed at encouraging and benefiting the local farmer.

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Nestlé‘s first unit at Moga, Punjab, deals with manufacturing of milk products, infant milk food and weaning cereals, culinary products and beverages. This factory has since involved into one of Nestlé‘s ten largest Factories worldwide. Nestle has since contributed to all strengthening of the Indian industrial Infrastructure by setting up state-of-the-art factories in Cherambadi (TamilNadu), Nanjangud (Karnataka), Ponda (Goa) and Bicholim (Goa). The second factory at Choladi, Tamilnadu to produce beverages (tea) was set up in 1967. To part-finance this project NIL went public in 1968. The third plant at Nanjangud, Karnataka, set up in 1989, manufactures instant coffee and health beverages. Nestle India Manufactures Liquid Milk, Sweetened Condensed Milk, Milk Powder, Dairy Whitener, Dessert Mixes, Weaning Cereals, Infant Milk Formulae, Junior Foods, Noodles, Sauces, Soups, Super Seasoning, Pickles Instant Coffee, Tea, Health Beverages, Chocolates, Confectionary, Wafers and Waffles. The Company depends on locally produced raw materials to manufacture world class quality foods by applying state-of-the- art manufacturing and processing technology. As a consequence, Nestle has not only got the best out of natural resources in the region where it operates but has helped to upgrade the quality and quantity of milk, coffee and coca available, for the economic benefit of the farmer as well as the health and nutrition of the consumer. A sterling example is the Nestle Agricultural Services contribution to the upliftment of the Moga Milk District in Punjab over three and a half decades. Environmentally Conscious Company: Nestle India puts over a hundred thousand tonnes of food in the marketplace every Year, marking its presence in most value added segments of the Indian food industry. Liquid Milk, Milk products, Infant Milk Formulae, Weaning Cereals, Culinary Products, Instant Coffee, Tea, Health Beverages, Chocolates and Confectionery, Wafers and Waffles. Solid Base for the future such responsible corporate citizenship has created goodwill for the Company in every community where it operates. Nestle plans to build on this

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and continue to play a leading role in the Indian Food Industry. Given Nestle India‘s past performance, Nestle S.A. is confident that it can ably support Nestle India‘s vision to reach a turnover of Rs. 10,000 Crores in the very first decade of the 21st century.

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Nestle India Limited – A Brief Profile
PAST & PRESENT 1959: On 28th March, the Company was incorporated at Khanna. The company was promoted by Nestle Alimentana S.A. through a wholly owned subsidiary, Nestle Holdings Ltd., Nassau, Bahama Islands. 1978: During the period 4, 00,114 equity shares and 382,751 existing equity shares held by Nestlé‘s Holdings, Ltd., Nassau, Bahama Islands (Nestle) were offered to the resident Indian nationals at a premium of Rs. 2.50 per share. 1987: During the year installation of a new factory at Nanjangud (Karnataka), for the manufacture of instant coffee was in progress. 1989: The name of the company was changed from `Food Specialties Ltd.' to `Nestle India Ltd.' on 24th March. 1990: During the year company entered into chocolate business by introducing Nestle premium chocolates. 1993: Samalkha factory was commissioned during the year and underwent expansion for cereal based products. 1994: During the year company launched a number of new products viz., Cerelac Soya, Milk maid, Dessert Mixes, Maggo Tonit's Special Cooking Bases, Maggi 1-2-3 noodles, Contadina snack dressing and the chocolate items, milky base marbles and bar one peanut. And also launched Bonus and Polo. 1995: During the year company commenced construction of a new factory at Bicholim, Goa. At the same year, instant noodles factory was installed and commissioned at

Samalkha factory. - During the year company launched Kit Kat manufactures at the new factory at Ponda, Goa.

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- During the same year the Nanjangud factory was commissioned and the unit was to manufacture MILO - the World's Largest Selling Chocolate energy food drink. - The Chennai-based Indian Food Fermentations tied up with Nestle India Ltd., to market its Dosa and vada batter in consumer pack, in the country. The company has signed an agreement to this effect recently. Nestle would sell the ready-to-use dosa, vada, sambhar and unique masala dosa batter in consumer packs, under its own brand name in the country. 1996: During the year company launched MILO-Chocolate energy food drink in South India and a range of culinary products like, Dosa and Sambhar mixes, pickles and new varieties of soups under the brand "Maggi". 1997: NIL is one of the top players in the processed food & beverages industry and the largest producer of instant coffee with a 49 per cent market share. - After the success of Kit Kat and Polo, Nestle India had launched its first product in the hard boiled sugar confectionery market, Allen's Splash. - Nestlé‘s wafer chocolate brand, Kit Kat, which created a major dent in the market with its launch, its international milk drink brand Milo had garnered a mere three per cent share (value terms) in the Rs 500 crore market, a year after its launch in India. - Nestle India Ltd. (NIL) leads the list of the country's top 15 coffee exporters for the ongoing calendar year in terms of both quantum and value for the period January 1 October 23. 1998: Nestle SA and the BM Khaitan group set up a joint venture, Nutritional Food Products India Ltd, in 1990, which was amalgamated with NIL in 1993. - Nestle had set up a parallel distribution network across the country.

1999: The Company has also set up a special cold chain for product distribution in select retail outlets. - Nestle India entered into a 10-year agreement with Campco in February, 1990 for manufacture and supply of bulk quantity of chocolates and cocoa products. 2000: Nestle entered the domestic bottled water business and launched the product under the brand name `Pure Life'.

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- The Company launched its ultra heat treated liquid milk, `Nestle Pure Milk', in Bangalore, Chennai, Hyderabad and Kochi. - The Company launched Perrier and celebrated "Perrier Invitation Golf-2000". - Nestle India Ltd. launched Nescafe Gold and Nescafe Gold Decaffeinated. - Nestle India launched a range of gift packs under the Fox confectionery brand name for the festival seasons. The Company launched its second premium mineral water brand ‗San Pellegrino‘ in India. 2001: Nestle India Ltd. launched `Pure Life', its mass-market bottled water, adding one more premium brand to the already saturated Rs 600-crore bottled water segment. - Nestle Bar-One was relaunched after renovating it to make it smoother, creamier and better meets consumer needs. 2002: Nestle Group increased its holding in Nestle India to 53.27% -Tied up with Nilgiris to co-brand various dairy products like dahi, paneer, ghee and possibly milk

-Launched a throat lozenge branded Acti-V to compete against Procter & Gamble's Vicks cough drops. -Regained top coffee exporter position in India. 2003: Rolled out Nestle Development Nutrition Plan for infant weaning and launched its infant food CERELAC 123 as a range of products graded to the needs of infants in each stage of the plan -Nestle SA, Switzerland, buys 1.01 million shares in its Indian arm 'Nestle India'. With this purchase, the parent holding in its Indian arm goes up to 59.8 per cent from 58.7 per cent -Signed a 100 per cent buyback pact with Bengal Nestor's India Ltd (BNIL) for its ultra heat treated milk and other dairy products. 2004: Nestle India bags Tetra Pak's annual dairy and beverage industry award.

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Products/Projects/Important Brands:
Soluble coffee: Nescafe, Taster's Choice, Ricoré, Ricoffy Roast & ground coffee: Nespresso, Bonka, Zoë gas, and Loumidis Water: Nestlé Pure Life, Nestlé Aquarel, Perrier, Vittel, Contrex, S. Pellegrino, Valvert, Panna, Levissima, Vera, First Bismarck, Viladrau, Arrowhead, Poland Spring, Zephyrhills, Santa Maria, La Vie Other beverages: Nestea, Nesquik, Nescau, Milo, Carnation, Libby's, Caro Dairy products (shelf stable): Nestlé, Nido, Nespray, Ninho, Carnation, Milkmaid, La Lechera, Moça, Klim, Gloria, Svelty, Molico, Nestlé Omega Plus, Bear Band, Coffee-mate / (chilled): Nestlé, LC1, Chamyto, La Laitière, Sveltesse, Yoco, Svelty, Molico Breakfast cereals: Nestlé Infant foods: Nestlé, Nan, Lactogen, Beba, Nestogen, Cérélac, Neslac, Nestum, Guigoz Performance nutrition: Power Bar Clinical nutrition: Nutren, Peptamen, Modulen, Build-up, Nesvita Culinary products (bouillons, soups, seasonings, prepared dishes, canned food, pasta, sauces): Maggi, Buitoni, Crosse & Blackwell, Libby's, Thomy, Winiary Frozen foods: Magi, Buitoni, Stouffer's Ice cream: Nestlé, Frisco, Motta, Camy, Savory, Peters Refrigerated products (yogurts, desserts, pasta, sauces): Nestlé, Buitoni, Herta

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Chocolate and confectionery: Nestlé, Crunch, Cailler, Galak/Milkybar, Kit Kat, Quality Street, Smarties, Baci, After Eight, Baby Ruth, Butterfinger, Lion, Aero, Polo, Fruitips, etc. Food Services and professional products: Chef, Davigel, Minor's, Santa Rica Pet care: Friskies, Fancy Feast, Alpo, Mighty Dog, Gourmet, Mon Petit, Felix Flavours for the food industry: Food Ingredients Specialties‘ (FIS) Pharmaceutical products: Alcon, Galderma Cosmetics: L‘Oreal (Nestle owns 49% of Gesparal, an investment vehicle 51% owned by the French Bettencourt family, headed by Liliane Bettencourt. Gesparal in turn owns 53.7% of L'Oreal, with the rest quoted on the Paris Bourse.)

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Strategic Achievements
Nestle has succeeded in emulating the success of other FMCG products into its portfolio, of offering small pack-sizes and convenience of use as a USP at very affordable prices. This strategy has been cast across product categories such as soups, coffee, flavored milk and chocolates. To improve penetration and availability, it pushed the 'out-of-home' channel of sales of products like Nestea, Nescafe Frappe, Italian Tomato Sauce mix, Maggi Hot Cup soups, and Nescafe vending machines were the chief products driven through this channel. Much of the strong volume growth seen in these categories is attributable to this change in tack. According to company sources, Nestlé's early successes with its brand extensions and new delivery channels will lead to sustained growth in the years to come.

Exports
Exports have tended to sputter last year and the performance in Q1CY09 is also not encouraging enough to believe that Nestle wishes to turn things around. One of the chief causes for the decline in exports is the 7.4% drop in sales volume. This was on account of Discontinuation of tea exports and a higher base in CY08. Lower realization in instant coffee exports to Russia (roughly three-fourth of its exports) on account of lower coffee prices also impacted sales negatively.

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MAGGI

Introduction
MAGGI has become a household name in India, synonymous with quality food as well as being a leading culinary expert, boasting cooking aids that provide invaluable help to housewives in whipping up tasty and convenient meal solutions for their families. Most have grown up with fond memories of MAGGI 2-Minute Noodles. In fact, many can still recall the MAGGI 2-Minute Noodles commercial on television years ago that depicted two school children running home to enjoy a bowl of scrumptious MAGGI noodles. The jingle is still embedded deep in the minds of consumers -‖Fast to cook, good to eat‖ and has made MAGGI noodles a must for every home. With the regional R&D Centre in Singapore focusing on development of Asian cuisine, MAGGI‘s portfolio of products can be developed at a faster pace to suit the needs of consumers. The MAGGI range of products has evolved from noodles and sauces to include cooking aids and recipe mixes to cater to the changing lifestyles of Singaporeans. These include products which are nutritious for health conscious Singaporeans.

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HISTORY
Over a century ago, back in 1884, a genius called Julius Maggi invented a powdered pea and bean soup, to provide nutritious, easy to prepare food for busy women who worked in factories and didn‘t have time to prepare healthy meals. This product was able to provide much needed nutrition for the people. Julius Maggi followed this first MAGGI product two years later with the invention of ready-to-use soups and liquid seasoning. Then Julius Maggi perfected bouillon concentrates, first in capsules, followed by cubes. Since then, the MAGGI range has extended substantially. In Singapore, the first products produced were MAGGI Tomato Ketchup and Chilli Sauce, launched in 1969. This was followed two years later with the popular MAGGI 2-Minute Noodles. Today, these three products are the market leaders in their respective categories.

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THE PRODUCT
MAGGI offers a total experience in culinary delights to consumers - with authentic tasting products, which are of the highest quality. The extensive MAGGI range includes MAGGI Noodles, Bouillon/Chicken Stock in powder and liquid, Dipping and Cooking Sauces, Cooking Aids and Recipe Mixes. In the bag noodles segment, MAGGI dominates, enjoying a high penetration rate of 77 percent in homes of Singaporeans while in the sauces category, MAGGI has almost 50 percent market share. The MAGGI Recipe Mixes include the MAGGI ―Hari Hari Favorites‖ range which enables busy adults and working mothers of today to cook up a mouth-watering feast of timeless culinary classics. The variety of recipe mixes offered within the range is the ideal solution to creating authentic Malay and Chinese favourites with ease and convenience. In this way, MAGGI has also helped preserve the culinary heritage of traditional cuisine for people to cook these dishes in their own homes any day of the week.

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RECENT DEVELOPMENTS
In 2002, MAGGI‘s presence in the noodles category was strengthened by the launch of MAGGI Hot Bowl Noodles and MAGGI Famous Cup Noodles to meet the increased demand for convenience. MAGGI also caters to new trends with its range of vegetarian products - MAGGI 2Minutes Noodles in Vegetarian flavor and MAGGI Shiitake Mushroom Oyster Flavored Sauce. In the premium sauces category, MAGGI launched the delicious MAGGI Thai Chilli Sauce and MAGGI Paste Mixes. Another area of product portfolio expansion is the cooking aids segment, a growing segment relevant to needs of today‘s busy Singaporeans. MAGGI is the first in the recipe mixes category in Singapore to obtain the Healthier Choice Symbol, awarded by the Singapore Health Promotion Board. It boasts four tasty flavours; Sweet & Sour Fish, Chilli Prawn, Braised Chicken Mushroom and Black Pepper Beef.

Add more products of Maggi-soups, atta nodles n more

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PROMOTION
In 2002, MAGGI was an exhibitor at Food Expo, a major consumer of products from local food companies or companies with local/Asian food offerings. This event also served as a launch pad for MAGGI Hot Bowl Noodles, generating high trial and awareness. MAGGI does both wet and dry sampling at high traffic outlets and locations using affinity group targeting, especially for new products to drive awareness and trial e.g. sampling of MAGGI Hot Bowl Noodles to tertiary students in hostels. Secondary schools are not left out – MAGGI sponsors home economics classes and cooking competitions. The objective is to teach students to prepare simple, yet tasty and nutritious meals at home. The themes and recipes are carefully selected to ensure relevance to the needs of the various participants. Recipe cards are produced and distributed during these sessions for easy reference, while MAGGI sampling packs are given away after the sessions for participants to whip up some MAGGI magic at home.

BRAND VALUES
MAGGI offers consumers simple solutions for today‘s consumers who are under various pressures such as time, budget, declining traditional cooking skills and the constant search for variety. The MAGGI range has established a reliable bond with consumers by giving ideas and advice that makes it easier to provide interesting meals. MAGGI products make providing tasty and interesting meals simple and easy. They make food more of an enjoyable sensory experience.

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THINGS YOU DIDN’T KNOW ABOUT MAGGI

• The MAGGI brand is over 100 years old and is recognized worldwide for its culinary range of products. • The MAGGI brand traces its roots all the way back to Switzerland in 1836. In 1947, the MAGGI Company merged with Nestlé. Nestlé strengthened the distribution and financial base of MAGGI and enabled it to become a leading world food brand. • The first product that Julius Maggi launched was MAGGI‘S Leguminous Flour and then MAGGI Seasoning, which is still available today. • MAGGI‘s presence in the noodles category was strengthened by the 2002 launch of MAGGI Hot Bowl Noodles and MAGGI Famous Cup Noodles. MAGGI revitalized this segment with the introduction of exciting, authentic local flavours adding a clean, springy bite to the product.

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MAGGI NOODLES– A BRIEF PROFILE

Maggi sauces manufactured by NESTLE INDIA LTD were launched in October 1985 and created consumer history. For the first time, a food product was launched nationally across 300 countries.

Maggi sauces are available in 4 flavours:   

Maggi Tomato ketchup launched in 1985. Maggi Hot n Sweet launched in 1985. Maggi Chilli Garlic launched in 1986. Maggi Masala Chilli launched in 1987.

Maggi Sauces are available in the following packings and with the following Price points: 200g --25/- for penetration  600g -- 57/- is the core grammage a house wife ends us buying  1.2 kg --89/- for consumers to upgrade from 600g to 1.2kg at less than double the price

 10g--

2/-

for

penetration

(Economy

pack

and

the

sachet)

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MARKET CHARACTERISITCS
MAJOR PLAYERS & PERFORMANCE TRENDS

RED HOT! THE KETCHUP WAR GETS SAUCIER

―India is primarily a dip-consuming nation, be it curd with parathas or chutney with dosas’.‖ The shift from home-made dips to tomato ketchup in urban households appears to be a natural process. Urban and semi-urban households are also showing a trend towards a breakfast habit of eggs, hence augmenting the demand for ketchup (to be consumed along with the eggs). According to research carried out by HLL, there is an increased usage of ketchup by younger adults and teenagers -- and not just children -- both at home and outside. The action in the Rs 1 billion tomato ketchup market in India is getting redder, hotter, and sweeter. The Rs 250-crore category is currently dominated by multinationals like Nestle, HLL and Heinz. While Nestle, HLL and Heinz are present in the Rs 120crore ketchup category through their brands Maggi, Kissan and Heinz respectively, HLL's Kissan is the only dominant branded player in the Rs 100-crore jams‘ category. The tomato ketchup segment is currently witnessing a robust 20 to 25 per cent growth. Pegged to see a 40 per cent growth over the next five years, the approximate size of the purees, jams and sauces market in 2005 is projected at Rs 10 billion. According to the new relief, all food preparations based on fruits and vegetables are exempt from excise duty making wide range of products of common use like pickles, sauces, ketchup and juices cheaper.

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Even the rural markets are not left untouched. After years of growth derived primarily from the urban markets, the FMCG companies have now realized that India lies in its rural villages. So much so that rural marketing has become the latest marketing mantra of most FMCG majors. With extensive competition not only from MNCs but also from the numerous regional players and the lure of an untapped market has driven the marketers to chalk out bold new strategies for targeting the rural consumer in a big way.

FACTORS IMPACTING DEMAND Demand for sauces is affected by a number of different factors. In the mayonnaise and sauce markets, consumption and pricing of certain meats, chips, and vegetables influence manufacturers‘ sales. The state of the overall economy, which determines how much money consumers have in their wallets, also has a significant impact on demand for dressings and sauces, in more ways than one. Economic trends will not only dictate how much consumers can spend when shopping for their weekly groceries, but also how often consumers will visit fast food and other restaurants.

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MAJOR PLAYERS IN NOODLES INDUSTRY

The companies that will be cooking up new recipes of growth include Hindustan Lever (HLL), Nestle, Heinz and Nafed among others. Another player that has made a high impact in the sauces segment is Tops Foods, which sells products such as pickles and sauces under the Tops brand. Volfarm, a known and established name in this sector has been slowly wiped out after the introduction of these new entrants in the particular segment. HLL has increasingly made its Kissan tomato ketchup portfolio ethnic with variants like Kissan Tomato Pudina, Kissan Tomchi, Kissan Tom-Imli and others, while competitor Nestlé‘s Maggi tomato ketchup has variants in chilli-garlic and hot-nsweet.

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COMPETITION–PERFORMANCE TRENDS
According to an extensive retail audit conducted by Samsika for the organised ketchup market in July 1997, Maggi ketchups had a 53 per cent market share in Bombay, of which the plain ketchup (200 gm, 600 gm, 1,200 gm pack sizes) accounted for 36.5 per cent, the rest being with Maggi Hot & Sweet (200 gm and 600 gm). (Nestle, claims a whopping 85 per cent market share in the Maggi Noodles category).

KISSAN HLL‗s Kissan, with all its variants, has a 48 per cent market share nationally, both in terms of volume and value. HLL, however, puts the national volume at 17,000 tonnes MAGGI

Nestle, for its part, claims a 53 per cent national share in what it says is the 13,000tonne market. HEINZ In the tomato ketchup Foodservice market, Heinz holds a European market share of 30 to 45%. With 38,600 employees, the multinational operates 200 plants globally. The company‘s products are organized into six core businesses and among these ketchup, sauces, and condiments comprise of 27% of fiscal year 2001 sales.

Ketchup and Condiments: - Ketchup has always been the company‘s ―flagship‖ brand. With global ketchup sales in excess of $1.3 billion, Heinz has over 50% of the

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domestic ketchup market and approximately 34% of the global market. However, Heinz ketchup faces challenges from other brand name ketchups, private label ketchups, and salsa. The increased popularity of salsa and other ethnic condiments as well as the lower cost structures for private label brands will threaten Heinz‘s market share.

Tops, the Rs 15-crore company has a wide range of products ranging from 21 varieties of pickles to jams, Chinese traditional noodles to juices and ketchups. We expect to double our growth figures this year and aim at targeting about 20 per cent share of the Rs 250-crore jams and ketchup market.‖ The company aspires to reach a target of Rs 100 crore by 2006 and is all out to focus entirely on the huge domestic market.

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BRAND POSITIONING STRATEGY OF MAGGI

According To Rosse Reaves “Positioning is the art of selecting out a number of unique selling propositions, the one which will get maximum sales.” According Philips Kotler “Market Positioning is arranging for a product to occupy a clear, distinctive and desirable place in the market and in the minds of target customer.” Thus, basic components of positioning can be referred to as:(1) Product class or the structure of the market in which the brand will compete. (2) Consumer Segmentation (3) Consumer Perception of Brand in relation to competitors.

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STRATEGY STATEMENT OF MAGGI NOODLES

TARGET MARKET: Upscale household (income 2500+) with particular emphasis on children. POSITIONING PRODUCT LINE: KETCHUP - : A Tasty, High Quality ketchup which goes best with all eats.

HOT AND SWEET, CHIILLI GARLIC, MASALA CHILLI: Uniquely spiced ketchup to suit the adult palate. PRICE: At par with competitive brands. DISTRIBUTION OUTLETS: All towns and all types of outlets both in urban and rural areas.

COMMUNICATION STRATEGY: Chahiye Yahi Chahiye is the last theme commercial run last year on TV. Strategy is to raise preference for the brand vis a vis competition. PROMOTION STRATEGY: Target kids via promos like water bottle, Tiffin pack or do value promos including noodles free, extra grammage or price offs (5 or 10/- off on packs) for the housewife. RESEARCH & DEVELOPMENT: Done Internationally.

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ADVERTISING OF MAGGI SINCE LAUNCH TILL PRESENT DATE ( Advertising themes, target consumers year wise)

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RESEARCH METHODOLOGY
The research was carried out in two phases:--

DATA COLLECTION:
The first phase comprises of designing the instrument, i.e., designing the Questionnaire. DESIGNING THE QUESTIONNAIRE The decision about the format of the questionnaire was very important and crucial since it has to fulfill all the research objectives, so that all the questions and problems are answered and at the same time tabulation and analysis should be easier and subjective bias should be eliminated.

Following criteria was kept in mind while designing the questionnaire:-1) The information sought should be clear and precise.

2) Use of multiple choice or five point ranking questions were used in the questionnaire, so that it is easy to administer and less time consuming.

3) The wording of the questions was kept simple so that both researcher and the respondent can understand easily.

4) The use of open ended questions along with the close ended questions were also introduced to have the complete in-depth study of the consumer attitude can be made to the extent possible.

5) Proper scope has been provided in the questionnaire for the quantification of the results.

6) The time factor was also very important since the research has to be done in the stipulated time along with the tabulation and analysis of the results. 50

The questionnaire, which is used to conduct research, is a structured, non-disguised type of questionnaire.

Advantages of using structured, non-disguised are: It helps in gathering relevant information.  It can be administered easily.  The precise and specific information is collected.

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Conclusion
In today‘s world which is fast moving & dynamic, people‘s wants, need and desires are changing; it‘s very important to know them and give them what they want. This is the main objective of advertising where ad agency plays major role in market research, making of creative, launching it in the market, taking the feedback of consumer and making any product famous and acceptable among consumers. Ad agencies are playing an important role in shaping present and future of not just selected brand but of entire company.

There is no one -- sure-fire -- best way to advertise your product or service. It is important to explore the various advertising media and select those which will most effectively convey your message to your customers in a cost-efficient manner. Always remember, advertising is an investment in the future of your business.

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Bibliography & Webliograpy
Books
 ADVERTISING MANAGEMENT Concepts and Cases by Manendra Mohan 

Advertising Management by B. S. Rathor



OGILVY ON ADVERTISING by David Ogilvy

 

4 Ps Business & Marketing

Economic Times

Websites
  www.magindia.com www.ogilvyindia.com

 www.agencyfaqs.com
   www.adage.com http://en.wikipedia.org/wiki www.aaaindia.org

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