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Transcript of Brm Report
PROJECT
ON“Comparative study on marketing mix of selected brands of
Tomato Ketchup (Maggi, Kissan & Cremica) and its impact on
consumer buying behavior.
1. INTRODUCTION :-
India is a diverse country where different states have different consumption patterns and
customs. Competition has become the key word in today’s scenario. Till 1970’s and 80’s 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. The ketchup market in India is estimated
to be around Rs 220 crore, largely dominated by Nestlé’s Maggi that owns 47% of the market
and the Kissan that owns 26%. Upto mid eighties Kissan was the number one brand in Tomato
Ketchup and around that time the competition came from Maggi -- a Nestlé’s brand
( Anonymous,2009 ).
This project is undertaken to study and understand the 4 P’s of marketing which includes
PRODUCT, PRICE, PLACE and PROMOTION of three brands of tomato Ketchup and its
impact on the consumer buying behaviour. The various brands of the tomato ketchup selected for
the study are Maggi, Kissan,………………………. and Cremica. Price helps 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 Tomato Ketchup.
There are various strategies which are used by manufacturers in marketing their product. The
popularity of the brand or the brand positioning depends upon various factors. The manufacturer
uses his strengths and opportunities for survival and to overcome against threats and its
weakness. Marketing mix or 4 P’s of marketing is the most important tool of any organisation.
( Anonymous (2001), Marketing mix )
Marketing mix has an impact on the buying decision of a consumer. Marketing is used to
identify the customer, to keep the customer, and to satisfy the customer. To understand the
behaviour of consumer, marketer must know how a consumer make decision before buying any
product for this consumer decision making (consumer buying behaviour) have to be studied.
The consumer decision making is a process having various stages which are as Need
Recognition: The buying process starts when the buyer recognizes a problem or need. The need
can be triggered by internal or external stimuli. Marketers need to identify the circumstances that
trigger a particular need. By gathering information from a number of consumers, marketers can
identify the most frequent stimuli that spark and interested in a product category. They can
develop marketing strategies that trigger consumer’s interest.
Information search: An aroused consumer will be inclined to search for more information. At
this level a person simply becomes more receptive to information about a product.
Consumer information sources fall into four groups; Personal sources, Commercial sources,
Public sources. Through gathering information, the consumer learns about competing brands and
their features.
Evaluation of alternatives: There is no single evaluation process used by all consumers or by
one consumer in all buying situation. There are several decision evaluation processes, First, the
consumer is trying to satisfy a need. Second, the consumer is looking for certain benefits from
the product solution. Third, the consumers see each product as a bundle of attributes with
varying abilities of delivering the benefits sought to satisfy this need.
Purchase Decision: In evaluation stage, the consumer forms preferences among the brands in the
choice set. The consumer may also form an intention to buy most preferred brand. However, two
factors can intervene between the purchase intentions and the purchase decision.
Post purchase behaviour: after purchasing the product the consumer will experience some level
of satisfaction or dissatisfaction. The marketers job does not end when the product is bought
marketers must monitor post purchase satisfaction; post purchase action and post purchase
product users.
There are various environmental variables which also effect the position of the brand. This
includes customer variable, competition, trade, technology and government variable. Marketing
mix and environmental factors are closely related which affect the consumer buying behaviour.
( Anonymous, Consumer behaviour )
This project is focussed on the studying the marketing mix of tomato ketchup and its three
brands ( Maggi, Kissan , Cremica) and the buying behaviour of its consumers in selected area of
Ludhiana city. As this project is done by the student of marketing and consumer behaviour, he or
she must know about the strategies which a marketer formulate and plan for the brand extension
and profitability. As marketing mix is based on the consumer behaviour the relationship have
been studied in this project.
The study has been planned with the following objectives :
1. To study the 4P’s of marketing of three selected brands of tomato ketchup i.e. Maggi,
Kissan and Cremica.
2. To study the consumer buying behaviour in regard to these selected brands of tomato
ketchup.
3. To do the comparative analysis of the three selected brands of tomato ketchups based
upon the marketing mix and consumer buying behaviour.
Four P ’s of marketing used by brands
About Maggi Tomato Ketchup :-
[source : http://upload.wikimedia.org/wikipedia/de/thumb/0/06/Maggi-logo.svg/677px-Maggi-logo.svg.png ]
Maggi Tomato Ketchup is primarily a taste enhancer, giving 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 the brand Maggi. Finally in 1985 when Maggi noodles had reached 4000 tonnes
business, they ensured the establishment of the brand Maggi and launched their Maggi ketchup.
Market leader Kissan was selling its ketchup in 500 gm. Nestle decided upon 400 gm bottle to
give 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.
Source : anonymous (2009) Encyclopaedia, http://www.absoluteastronomy.com/topics/Maggi
4 P’s of Marketing of Maggi Tomato Ketchup
1. PRODUCT :- ( 1Kg bottle)
a. 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.
b. The product ingredients are water, tomato paste (34%), sugar, iodised salt, acidifying agent
(260), thickening agent (440 & 401), onion powder, garlic powder, mixed spices and
preservative (211).
2. PROMOTION :-
a. They promote their product very effectively through television by adding humour in the ads.
b. They also sponsor various cookery shows to promote alternate usage of products. Maggi was a
sponsor for Hum Log, a popular television show on Doordarshan, India’s sole channel in 1984.
c. They also use strategy of free product samples to promote it. They have distributed samples in
various mall and schools in Delhi.
d. Celebrity endorsements:- Maggi was They came up with their popular
character of Pankaj and Javed to communicate with target audience Nestlé
carried out various promotional activities as well. These included the August
1999 ‘Fun-Dooz’ campaign and Jungle Jackpot campaign .They have taken
Javed Jafferi for endorsement of tomato ketchup. They used a punch line that
is very effective and creates a unique image in the minds of the customers.
That is “its Different”. On completing its 25 years in India, Maggi has
changed slogan to “ Make a Difference”. And it’s now campaign slogan is
“Mai & maire maggi”.
3. PLACE :- Sold in India , New Zealand , Australia , Malaysia, Pakistan,
Nigeria, Philippines and Singapore.The distribution network is well spread as it is easily available in
all karyana stores, retail store etc.
4. PRICE :-
Its Maggi Rich Tomatoes is priced at Rs 90
(1 kg bottle with 20% free offer).
About Kissan Tomato Ketchup :-
Source : http://www.maggi.in/MAGGI_Sauces.aspx
4 P’s of marketing of Kissan Tomato Ketchup are :-
1. PRODUCT :- ( 1Kg bottle)
It is available in different variants: Kissan Ketchup and Kissan Sauce (no onion no garlic),
Kissan Tomchi.
The product ingredients are water, tomato paste , sugar, salt, acidity regulator
(260),Stabilizers (1442 & 415), condiments, onion powder, garlic powder, mixed spices and
preservative (211).
The thickness is more as compared to Maggi Ketchup. Due to the hidden quantity of the
tomato paste in the ingredient.
2. PROMOTION :-
a. No particular celebrity endorsement is used by the HUL ( Hindustan Unilever Limited ).
b. The new campaign of Kissan has positioned the Kissan Ketchup a unique product . Taking the tag line "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 "
3. PLACE : -
Sold in India, U.S.A and Australia. The distribution network is well spread as it is easily
available in all karyana stores, retail store etc.
4. PRICE :-
Kissan Ketchup is priced at Rs 91 (1 kg bottle).
Source :- http://fliiby.com/images/_thumbs/me_jrtq2qc6al1.jpg
About Cremica Tomato Ketchup :
source: http://www.mrsbectorfoods.com/images/sauces_img.jpg
Established in 1978 as a small enterprise by Mrs. Bector, a housewife and passionate food
enthusiast, the Cremica Group is today a widely diversified food products company engaged in
food retailing and food services industry. Mrs Bector's Cremica, a 90 million dollar company, is
one of the largest players in food services business in India.
The Cremica Group includes Cremica Frozen Foods, EBI foods, Mrs Bector's Desserts and
Cremica Agro India. It serves as a one-stop solution provider to all leading food service chains,
food retail chains, hotel groups and airlines. Cremica's spread of delightful biscuits, breads,
sauces, bread spreads, ready-to-eat curries and syrups have something for everyone. Today, its
products are exported to 50 countries including Africa, the USA, UK and the Middle East.
Source : Asian News International ( 2009)
http://www.thefreelibrary.com/The+Cremica+group+making+waves+in+food+service+industry.(Company...-a0199265103
4 P’s of marketing of Cremica Tomato Ketchup :-
1. PRODUCT :- ( 1Kg bottle)
a. Its product line includes Tomato ketchup, chilli sauce, tomato ketchup sachets, chilli sauce
sachets, mustard sachet, mint dip sachets, pizza pasta sauce, salsa Mexicana sauce, chilli
garlic sauce.
b. The company has launched a new `concept product' which it calls a `tiffin ketchup sachet.'
This is a carton with 25 single serve sachets which the company hopes will do well in homes
with school-going children.
c. The product ingredients are water, tomato paste (34.5%), sugar, common salt, liquid glucose,
permitted acid (E 260), permitted emulsifier and stabiliser (E415), onion powder, garlic
powder, condiments.
2. PROMOTION :-
a. No particular celebrity endorsement is used by the Mrs. Bector for cremica tomato ketchup.
b. They promote their ketchup through hoardings, wall paintings and from various fast food
corners like McDonald’s, Pizza Hut, and Subway.
3. PLACE :-
a. The company is a major player in the institutional sales segment and supplies to
international chains such as McDonald's, Pizza Hut, Indian Railways, Jet Airways,
Kellogg's, Subway and to the Indian Army's Canteen Stores Department. The company
has a retail presence largely in the Northern market.
b. It is looking at an entry into smaller places such as Goa, Indore, Raipur, Jaipur, Agra,
Lucknow, Kochi, Coimbatore and Madurai.
c. It also makes products for the food divisions of major FMCG companies including a
chocolate topping for Kwality Wall's, the ice-cream brand of Hindustan Lever.
d. It has also partnered with Cadbury’s ITC and EBI Foods, a UK based firm. It has
customers like Cafi Coffee Day, Taj Group of Hotels, Spencer.
4. PRICE :-
The price of 1kg Cremica Tomato ketchup bottle for Rs. 89 for consumers.
Chapter 2.
REVIEW OF LITERATURE:-
The chapter included the information related to secondary data sourced from various published source like books , internet , journals etc. The review have been categorised into following heads :-
2.1 About consumer behaviour
2.2 Marketing mix review
2.3 Historical review about tomato ketchup
2.4 Studies conducted on Maggi , Kissan and Cremica brands of ketchup .
2.1 About consumer behaviour :-
Referring to Solomon (2006, p.27) consumer behaviour is the study of the processes involved
when individuals or groups select, purchase, use or dispose of products, services, idea or
experiences. Consumer behaviour focuses on how individuals make decisions to spend their
available resources on consumption related items. That includes what they buy, why they buy,
when they buy, where they buy it, how often they buy it how often they use it, how they
evaluate it after they purchase and the impact of such evaluations on future purchases, and
how they dispose it. Schiffman and Kanuk (2004, p.8)
2.1.1 Consumer attitude :-
According to Ajzen (1998) the attitudes are the first determinant of behaviour intention. In
consumer behaviour context attitude is a learned predisposition to behave in a consistently
favourable or unfavourable way with respect of a given object. There is a general agreement that
attitudes are learned. This means that attitudes relevant to purchase behaviour are formed as a
result of direct experience with the product, word-of-mouth information acquired from others, or
exposure to mass media advertising. Internet etc. (Schiffman and Kanuk, 2004, p.253) As
learned predisposition, attitudes may propel consumer towards particular behaviour or repel the
consumer away from particular behaviour. . (Schiffman and Kanuk,2004, p.253)
2.1.2 Consumer decision-making process :-
Many consumer theories regarding the consumer behaviour were based on economic theory on
the notion that individuals at rationally to maximize their benefits/satisfaction in the purchase of
goods and services. Later research discovered that consumers are just as likely to purchase
impulsively and to be influenced not only by family, friends, and advertisers but also by mood,
situation and emotion. All of these factors combine to form a comprehensive model of consumer
behaviour that reflects both the cognitive and emotional aspects of consumer decision-making.
(Schiffman and Kanuk, 2004, p.19)
In this simplified model (Figure 3.1) of consumer decision-making process Schiffman and
Kanuk (2004) identified three distinct but linked stages from which the process of consumer
decision-making can be viewed. It ties together the psychological, social and cultural concept
into easily understood framework.
2.2 Marketing Mix :-
The concept of the marketing mix as the combination of the major tools of marketing was first
developed by Borden in the 1950s. The idea of 4Ps (Product, Place, Price and Promotion) was
later formulated by McCarthy in 1975. The marketing mix creates an offering for the customer.
Marketers need to ensure that the marketing mix meets their customers’ needs and wants in
addition to that all of its components need to be consistent with each other. If not costumers will
turn away to its competitors. (Brassington, 2006 p.30)
Vignali (2001) acknowledges that for many years 4Ps have been used as the principal foundation
on which a marketing plan is based. However, with particular attention being paid to services
marketing in recent years, theorists have identified additional variables, which could be added to
the 4Ps. Fifield and Gilligan (1996, cited by Vignali 2001) recognized the following variables as
an integral part of the marketing mix- process, physical and people. Vignali (2001) applied 7Ps
analysing the marketing mix of McDonald’s in the following way:
1. Product – features, quality, quantity.
2. Place – location, number of outlets.
3. Price – strategy, determinants, levels.
4. Promotion – advertising, sales promotion, public relations.
5. People – quantity, quality, training, promotion.
6. Process – blueprinting, automation, control procedures.
7. Physical – cleanliness, decor, ambience of the service. In this project , the main focus is on the
4 P’s of marketing rather than 7 Ps. 4 Ps includes product, price , place and promotion .
2.3 Historical review :-
2.3.1 History of Tomato ketchup in India :-
Anonymous (2009) reviewed that the ketchup market in India is estimated to be around Rs 220
crore, largely dominated by Nestlé’s Maggi that owns 47% of the market and the Kissan that
owns 26%. Upto mid eighties Kissan was the number one brand in Tomato Ketchup and around
that time the competition came from Maggi -a Nestlé’s brand. With Maggi launching several
varieties of Tomato Ketchup there was a growth in the market. With Kissan and Maggi 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. At a time
when Kissan had become generic to tomato sauce, Maggi came in with its sauces range. Maggi
was the upstate new corner 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.
2.4 Survey on tomato ketchups :-
Trivedi H (2008) conducted study on consumer buying decision making of ketchup. The study
was conducted Ahmadabad city. An in-house laboratory test on 15 brands of tomato sauce and
ketchup from across the country and 2 unbranded samples were conducted. Overall, Maggi
Ketchup (79) scored the highest among the national brands followed by Kissan Sauce (78)
and Heinz Ketchup (78). Among the regional brands, Madhur Premium Sauce and Ketchup
topped the list. It was found out that the `Best Buy’ tomato ketchup in the national category is
Nilon’s Sauce since its price was less than that of Maggi Ketchup. Similarly Madhur Ketchup is
the `Best Buy’ in the regional category. Two brands - Sona Continental and Tops Continental
were tested as a separate category because it had vegetables as ingredients, besides tomatoes.
Both the brands were found to be non-conforming, hence they were not rated and ranked.
2.4.1 A bout cremica :- (The Cremica group making waves in food service industry )
Karan Kapoor ( 2009) writes an article on Cremica Tomato ketchup. According to him Cremica
was established in 1978 as a small enterprise by Mrs. Bector, a housewife and passionate food
enthusiast, the Cremica Group is today a widely diversified food products company engaged in
food retailing and food services industry.
Mrs Bector’s Cremica, a 90 million dollar company, is one of the largest players in food services
business in India. The Cremica Group includes Cremica Frozen Foods, EBI Foods, Mrs Bector’s
Desserts and Cremica Agro India. It serves as a one-stop solution provider to all leading food
service chains, food retail chains, hotel groups and airlines.
Cremica’s spread of delightful biscuits, breads, sauces, bread spreads, ready-to-eat curries and
syrups have something for everyone.
Today, its products are exported to 50 countries including Africa, the USA, UK and the Middle
East. “Our sauces are going to Australia. We have recently launched a new range of chip-dips
and bread spread in the ethnic Indian range and these are going abroad to a number of countries.
We have had a highly successful launches of these products in Australia and the U.S. and we will
be further reinforcing a new strategy in these markets,” said Adshay Bector, Managing Director
of Mrs. Bector’s Food Specialities Ltd.
Since 1996, Cremica has been supplying buns, ketchups and toppings to McDonald’s – its key
business partner. It has also partnered with Cadbury’s ITC and EBI Foods, a UK based firm. It
has customers like Cafi Coffee Day, Taj Group of Hotels, Spencer and Barista as well.
2.4.2 Maggi ketchup completes 25 years in India & is still making a difference :-
According to Press Trust of India (2010) article nearly two decades after it first tickled the funny
bone with the It's Different punchline for Maggi sauces, FMCG major Nestle is changing the
slogan for its ketch up brand to Make a Difference, to stay in sync with the new generation of
customers. As Maggi tomato ketchup turns 25 this year in India, Nestle is adopting a more
interactive approach with customers through its new campaign, Hassi Khushi and Maggi Sauce,
which will see the ketchup range sport a new tagline, Make a Difference, starting from next
month.
As the brand grows they are looking for new ideas to communicate with consumers. Maggi is
also organising various campaigns in Delhi and NCRC area. This time they have thought of
letting the consumers do the talking.
2.4.3 Kissan Tomato ketchup :- F ar from a delight but still a necessity
Akisha (2004), expressed her views about Kissan tomato ketchup. According to her , Kissan
tomato ketchup is every type snack ketchup. One can have it with hot burger, pizza etc. Maggi’s
tomato ketchup is spicy where as Kissan tomto ketchup is tangy and mush thicker than Maggi
tomato ketchup.
2.4.4 Maggi : FROM 2-MINUTES TO 25 YEARS…
Ambika Sharma (2009) reviewed that the Nestle R&D Centre in Singapore is using their
technological know-how and knowledge of culinary art in India to develop an innovative product
that does not have any added preservatives and contains low levels of oil. In its endeavour to
make Maggi Tomato Ketchup affordable to many more families, Maggi also launched Maggi
Pichkoo, an easy to handle, squeezable pack of Maggi Ketchup priced at Rs.12. Today, Maggi
stands generic to its category. With continuous innovation and renovation of its product portfolio
based on strong consumer insights, Maggi has become an integral part of millions of Indians.
2.4.5 Is tomato ketchup is bad ?
According to Oprystar on 30th Jan , 2007, tomato ketchup is good . It has cancer fighting
elements called lycopene. This can also help fight against heart disease. The Cancer Research
Foundation of America has found that cooked tomatoes, like those used to make ketchup, has as
much as five times the amount of lycopene as fresh tomatoes.
Lycopene is a natural antioxidant that protects the heart by preventing the oxidation of LDL
cholesterol (bad) in your arteries. Lycopene does not lessen the amount of cholesterol, but keeps
it from causing damage.
CHAPTER 3. RESEARCH METHODOLOGY
Sr. No Research Methodology
1. Research Design Exploratory
2. Research tool Interview Schedule
3. Sample size 130 respondents ( 10 retailers + 120 customers)
4. Sampling Method Convenience random sampling method
5. Data collected from areas In Ludhiana ( Model Town, Sarabha Nagar and Malhar Road)
6. Final data analysis tools M.S Excel and MS Word
Research Design :-
Exploratory research design has been chosen for conducting this project. Exploratory
research helps in understanding the relationship between marketing mix and consumer
behaviour. It also helps in understanding the consumer behaviour for buying the particular
Brand’s tomato ketchup.
Research Tool :-
Interview schedule method has been used for retailers as well as customers. For this a
structured questionnaire has been prepared both for retailer and customers. For retailers
interview schedule is prepared keeping in mind the marketing mix concept and
environmental factors where as for customer’s interview schedule is prepared keeping in
mind consumer decision making has been the base.
Sample Size :-
Sample comprise of 130 respondents 1. Retailers :- 10 2. Customers :- 120
Sampling Method : -
Convenience random sampling method is used for selecting the sample. With the help of
convenience random sampling the respondents are randomly selected by the researcher from
the areas which are convenient for researcher.
Data Collection Plan :-
Data Gathering :-
This study involves data collection (primary research) from different areas of
Ludhiana i.e. Model Town, Sarabha Nagar and Malhar Road.
Pre-testing :- The pre-testing of the research tool has been conducted before the final data collection to
know reliability and validity of the research tool. For pre-testing, 1/10th of the non-
sampled respondents have been taken as sample.
Final data collection and analysis:-
Data have been analysed by using the appropriate statistical tools and techniques. The
data was coded and analysed with the MS excel application and also it were tabulated and
graphically presented with the help of MS word application.
Bibliography
Site Source :-
Anonymous (2009), Http://www.absoluteastronomy.com/topics/Maggi
Asian News International ( 2009)
http://www.thefreelibrary.com/The+Cremica+group+making+waves+in+food+service+in
dustry.(Company...-a0199265103
Trivedi Harshit (2008) food. Http://sawaal.ibibo.com/groceries/which-top-10-ketchup-brands- india-776538.html
Ankgol (2007) Kissan tomato ketchup. Http://www.reviewstream.com/reviews/?P=85640
Kapoor Karan ( 2009).The Cremica group making waves in food service industry. Http://buzz7.com/world/the-cremica-group-making-waves-in-food-service-industry.html
Press Trust of India(Apr 29, 2010).Maggi ketchup completes 25 years in India & is still making a difference. Http://www.financialexpress.com/news/Maggi-ketchup-completes-25-years-in-India-amp-is-still-making-a-difference/612612/
Sharma Ambika (2009). India's 100 most valuable brands-2009 . Http://www.4psbusinessandmarketing.com
Saunders, M., Lewis, P., And Thornhill, A., (2007) Research For Business Students, Harlow: Pearson Education Limited (4th Ed.).
Shiffman, L. & Kanuk, L., (2005) Consumer Behaviour, Person Education Limited (8th Ed.)
Oprystar (30th Jan , 2007) is tomato ketchup are bad ? http://blogs.rediff.com/holistichealth/2008/03/
Nestle Agency (2006), Maggi – its different http://www.oppapers.com/essays/Marketing-Plan-For-Maggie/208231
Term papers (2008), Marketing Plan For Maggie, http://www.4psbusinessandmarketing.com/10092009/storyd.asp?sid=3077&pageno=1
Anonymous , marketing mix, www.wikepedia.org
Anonymous ,consumer behaviour, www.wikepedia.org
A Correspondent, Mumbai (2005), HLL plans relaunch of its food brands , http://www.fnbnews.com/article/
Cremica , http://www.ludhianadistrict.com/cremica